The URL can be used to link to this page

Home My WebLink About2003-03-04; City Council; 17084; Report on Investments as of 1/31/2003jB# 17;084 UlTG. TITLE: AS OF 3-,4--03 REPORT ON CITY INVESTMENTS January 31,2003 IEPT. TRS CITY OF CARLSBAD -AGENDA BILL RECOMMENDED ACTION: Accept and file report. ITEM EXPLANATION: The City’s Investment Policy requires the City Treasurer to report to the City Council on a monthly basis the status of the City’s pooled investment portfolio. A quarterly report is also required for the investments of bond proceeds held separately. The City’s pooled investment portfolio as of the month ended January 31,2003 is summarized below. Pooled Investment Portfolio (Cash and Securities) Current Month Prior Month Par Value 399,782,684 406,393,408 Cost of Investments 41 3,063,596 41 8,753,603 Market Value (2) 402,239,581 408,737,854 Amortized Cost (1) 401,816,425 408,299,783 (1) The cost of investments adjusted for amortized premiums and discounts. (2) The amount at which the investments could be sold. Source of market values is Union Bank of California’s custodial report as of 1/31/03. The equity portion of the various funds at the amortized value of the total portfolio is summarized below: I Fund Eauitv in Pooled Investments I Cash Balance by Fund: General 85.488.91 7 Special Revenue 784,822 Reconciling Adjustments 14,511,922 Agency Funds 14,502,373 Internal Service 1 17,331 ,I 92 Enterprise 147,909,906 Capital Projects 2,832,301 Debt Service 25,376,421 Total Treasurer’s Investment Portfolio at Amortized Cost 408.737.854 Fund equity balances are restricted for various purposes as listed above. See Exhibit 7 for a more detailed breakdown. I PAGE TWO OF AGENDA BILL NO. 17 084 Pooled Investment Interest Income Current Current Month Prior Month FYTD Income Month FYTD Cash Income Fiscal Year-to-Date * 1,742,321 9,207,818 10,950,139 *The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performance/Measurement Average Life (Years) Modified Duration Average Yield November 2002 December 2002 1.71 9 4.36% 1.90 1.779 4.20% 1.96 January 2003 1.754 4.32% I .93 All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised January 14, 2003. All investments were initially made in accordance with the City’s Investment Policy. Events subsequent to the purchase might have resulted in some investments not being in compliance with the current policy. These events are typically a change in the City’s Investment Policy, a change in the credit rating subsequent to a purchase, or a temporary reduction in total portfolio assets. See Exhibit 8 for details. The City’s Investment Policy requires that no more than 5% of the City’s portfolio be placed with any single issuer with the exception of U.S. TreasuryIFederal agency securities and authorized pools. Exhibit 9 shows Citigroup exceeding this limitation as a result of the acquisition or the merging of companies. This situation will self correct as the Citigroup issues mature. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. EXHIBITS FOR POOLED INVESTMENTS: 1. 2. 3. 4. 5. 6. 7. 8. 9. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield Investment Portfolio Breakdown Of Maturities Yield Comparison Graph Cumulative Cash Income Graph Third Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 5 C 0 a .- b ti 5 C s U C g! 0 a L . 6 Z 6 Z . 0 0 0 0 0 n o 0 8 0 8 0 0 0 0 0 s 0 8 0 8 0 0 0 0 0 a o 0 8 0 8 0 0 0 0 0 of I- s N 3 3 EXHIBIT 2 s 8 s 9 0 s 9 0 s 9 0 s 8 s 0 v m d CI c.t 0 0 0 0 3 rn m 2 2 m 0 €4 d 0 0 R 0. J 2 3 m I", W 2 3 "" 3 .9 3 3 3 z Y v) 0 > .5 s c! m W 0 0 0 0 0 0 0 0 3 i n 3 W s m 0 0 0 0 cu m 2 l- m cu o_ 3 m I"" z W \d rn i 3 c 0 5 0 r) w -4 c c 0 % 4 0 3 5 EXHIBIT 4 8 0 2 H 6 0 z a 0 w W z 5 bcDlnmwwwcoa 000000000 -m-co*bb-b --cumcuNcu(Vcu 000000000 . . . . . . . . . (~ln-o~cocococo . . . . . . . . . 000000000 $$ 00 :z 00 00 is zz EXHIBIT 5 ~ 0 8 8 z 0 0 i z m 0 0 x L z 2 0 hl 0 Q lnlnbW bco00 Ob" -000 e??? c2Fe cucucucu 0000 m$g w-az .. 0000 7 EXHIBIT 6 Z 0 I- z k B lY 0 0 L 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF JANUARY 31,2003 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traffic Impact Fees Public Facilities Fees Park Development Transnet Taxes Drainage Fees Special Districts Infrastructure Replacement Other Capital Construction Total Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Total Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 85,488,917 25,376,421 2,832,301 11,831,367 6,605,743 31,194,600 7,595,989 7,582,283 7,527,317 62,326,810 11,685,830 1,559,968 147,909,906 51,396,530 59,040,807 4,375,191 2,518,665 117,331,192 14,502,373 0 14,511,922 0 407,953,032 784,822 (1) Redevelopment Fund Balances are interspersed throughout all funds. (2) The Reconciling Adjustments consist of differences between the General Ledger which is prepared on an accrual basis and the Treasurer's report which is prepared on the cash basis. Accrued Interest, amortized premium or discounts and outstanding checks and deposits in transit are not included in the Treasurer's summary. Differences between the time journal entries are posted and the time this report is produced may also be a component of the adjustment. 408,737,854 ** Figures based on best estimate at the time report run on 2/06/03, EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,2003 CORPORATE NOTE AND COMMERCIAL PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better by both Moody's and S8P) Moodv's - S8P ALLSTATE FINANCIAL AA2 AA+ ASSOCIATES CORP AA1 AA- ClTlGROUP AA1 AA- COMMERCIAL CREDIT CO AA1 AA- GENERAL ELECTRIC AAA AAA JERSEY CENT P&L AAA AAA NORTHERN ILL GAS AA1 AA OHIO BELL TEL AA2 AA- PACIFIC BELL AA3 AA- PITNEY BOWES INC AA3 AA SBC COMMUNICATIONS AA3 AA- SOUTHERN NEW ENGLAND TEL AA3 AA- SOUTHWESTERN BELL AA3 AA- SUN AMERICA INC AAA AAA Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be AllPl or better by both Moody's and S8P) (Ratings of other debt must be AA or better by Moody's or S8P) SECURITY CAPITAL - GE AAA AAA NONE Investments with Subsequent Changes in Credit Rating ABN AMRO BANK CAMPBELL SOUP CO CREDIT SUISSE DEAN WITTER DlSCV MERRILL LYNCH MORGAN STANLEY DEAN WITTER WACHOVIA CORP Moody's - SBP AI A+ A3 A AA3 A+ AA3 A+ AA3 A+ AA3 A+ AA3 A Latest Maturitv Date Purchased 0513 1 I05 AA3lAA- 10101 103 AA3lAA- 0411 5/07 AA3lAA- 1 1 IO1 I05 AA3lAA- 0911 5104 AA3lAA- 0411 5/06 AA3lAA- 0711 5/05 AA3lAA- Carrying Value 4,157,550 1,977,146 4,250,834 2,972,250 6,208,603 15,714,418 4,013,946 Market Value 4,477,203 2,041,140 4,266,520 3,274,290 6,544,649 17,058,920 4,374,240 * The City's Investment Policy allows the City Treasurer to determine the course of action that would correct exceptions to the policy. All of these investments are paying interest at the required times. The principal of all investments are considered secure. It is the intent of the City Treasurer to hold these assets in the portfolio until maturity unless events indicate they should be sold. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,2003 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* 1 .04% I .96% 0.46% 5.94% ABN AMRO BANK 4,228,884.98 ALLSTATE FINANCIAL 8,020,253.19 CAMPBELL SOUP CO 1,868,682.02 ClTlGROUP ASSOCIATES CORP COMM CREDIT 8,372,495.00 8,421,298.13 7,474,695.94 CREDIT SUISSE 4,270,881 .I2 1.05% 3.78% GENERAL ELECTRIC CAP SECURITY CAPITAL 15,445,257.01 3,380,298.92 JERSEY CENT P&L 2,974,560.00 0.73% 1.51 % 4.59% MERRILL LYNCH 6,145,447.87 MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 NORTHERN ILL GAS 715,349.40 0.1 8% 0.47% 4.12% PITNEY BOWES INC 1,919,298.74 SBC COMMUNICATIONS OHIO BELL TEL PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL 4,058,275.56 1,947,308.26 7,593,579.83 1,113,832.90 2,097,205.18 SUN AMERICA INC 1,117,700.00 1.26% 0.99% WACHOVIA CORP 4,023,404.94 Total Portfolio * No more than 5% may be invested with a single issuer. $408,299,783.00