HomeMy WebLinkAbout2003-03-25; City Council; 17105; Report on City Investments as of 2/28/03CITY OF CARLSBAD -AGENDA BILL
\B# 17 -105
\IITG. 3/25/03
TITLE:
REPORT ON CITY INVESTMENTS
AS OF CITY ATTY:
February 28,2003 3EPT. TRS CITY MGR: a-
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 February 28,2003 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
Current Month Prior Month
Par Value
41 8,753,603 416,320,841 Market Value (2)
408,737,854 405,463,259 Amortized Cost (1)
408,299,783 405,056,147 Cost of Investments
406,393,408 403,119,200
(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 2/28/03.
The equity portion of the various funds at the amortized value of the total portfolio is
summarized below:
Fund Equity in Pooled Investments
Cash Balance bv Fund: I
~ General
144,368,104 Capital Projects 2,799,730 Debt Service 25,464,751 Special Revenue 86,203,666
72,962 Reconciling Adjustments 14,566,880 Agency Funds
14,605,654 Internal Service
117,381,512 Enterprise
Total Treasurer’s Investment Portfolio at Amortized Cost 405,463,259
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 -105
Pooled Investment Interest Income
Current Current Month Prior
Month FYTD Income Month FYTD
Cash Income Fiscal
Year-to-Date * 1,476,733 10,950,139 12,426,872
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
Average Life
(Years) Modified Duration Average Yield
December 2002 1.754 4.32% 1.93
January 2003
1.714 4.1 1% 1.87 February 2003
1.779 4.20% 1.96
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. Treasury/Federal 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
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF FEBRUARY 28,2003
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
86,203,666
25,464,751
2,799,730
11,865,918
6,596,070
31,171,011
3,533,689
7,539,355
7,604,780
62,972,009
11,724,401
1,360,871
144,368,104
51,249,713
59,148,638
4,471,615
2,511,546
117,381,512
14,605,654
0
14,566,880
0
405,390,296
72,963
405,463,259
(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.
** Figures based on best estimate at the time report run on 3/05/03.
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF FEBRUARY 28,2003
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 S&P)
Moodv's s&p
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 S&P)
(Ratings of other debt must be AA or better by Moody's or S&P)
SECURITY CAPITAL - GE AAA AAA
NONE
investments with Subsequent Changes in Credit Rating
ABN AMRO BANK
CAMPBELL SOUP CO
CREDIT SUiSSE
DEAN WITTER DISCV
MERRILL LYNCH
MORGAN STANLEY DEAN WITTER
WACHOVIA CORP
Moodv's s8p
AI A+
A3 A
AA3 A+
AA3 A+
AA3 A+
AA3 A+
AA3 A
Latest
Maturitv Date Purchased
05/31/05 AA3lAA-
10101 I03 AA3IAA-
0411 5/07 AA3lAA-
1 1101 I05 AA3lAA-
0911 5/04 AA3IAA-
0411 5/06 AA3lAA-
0711 5/05 AA3lAA-
Carrying Value
4,154,598
1,980,002
4,245,864
2,973,091
5,210,589
15,710,930
4,013,589
MaFket - Value
4,518,442
2,037,220
4,336,240
3,291,000
5,549,502
17,236,784
4,402,300
* 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 FEBRUARY 28,2003
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
1.04%
1.98%
0.46%
5.99%
ABN AMRO BANK 4,228,884.98
ALLSTATE FINANCIAL 8,020,253.1 9
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 4,270,881.12 1.05%
3.81% GENERAL ELECTRIC CAP
SECURITY CAPITAL
15,445,257.01
3,380,298.92
JERSEY CENT P&L 2,974,560.00 0.73%
1.27%
4.63%
MERRILL LYNCH 5,129,447.87
MORGAN STANLEY DEAN WITTER
DEAN WITTER DISCV
15,789,131.03
2,950,553.97
NORTHERN ILL GAS 71 5,349.40 0.18%
0.47%
4.1 5%
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 ,I 13,832.90
2,097,205.18
SUN AMERICA INC 1,117,700.00 1.27%
0.99% WACHOVIA CORP 4,023,404.94
Total Portfolio
NO more than 5% may be invested with a single issuer
$405,056,147.14