HomeMy WebLinkAbout2003-05-06; City Council; 17152; Report on City Investments as of 3/31/03iB# 17t152
ITG.
IEPT. TRS
5-6-03
RECOMMENDED ACTION:
TITLE:
REPORT ON CITY INVESTMENTS
AS OF MARCH 31,2003
CITY MGR:
Accept and file report.
v Current Month Prior Month
ITEM EXPLANATION:
Par Value
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 March 31,2003 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
41 1,213,977 403,119,200
Cost of Investments
Amortized Cost (1)
Market Value (2)
41 3,217,780 405,056,147
41 3,507,162 405,463,259
423,826,035 416,320,841
Cash Bala s id:
Genera I
Special Revenue
Debt Service
Capital Projects
Enterprise
(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 3/31/03.
85,689,143
26,356,676
2,501,764
151,339,033
120,418,058
The equity portion of the various funds at the amortized value of the total portfolio is
summarized below:
I Fund Equity in Pooled Investments
lnce bv Fun
I Internal Service I 1 4,7 1 3,040
18 13,055,OL I Aaencv Funds I
._ 1
Fund equity balances are restricted for various purposes as listed above. See Exhibit 7
for a more detailed breakdown.
PAGE TWO OF AGENDA BILL NO. l7 152
Cash Income Fiscal
Year-to-Date *
Current Prior Current Month
Month FYTD Month FYTD Income
14,l 46,593 12,427,033 1,719,560
*The cash income received is adjusted for any accrued interest purchased.
Average Life
(Years)
Mod if ied
Average Yield Duration
January 2003 1.96 4.20% 1.779
February 2003
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.
1.87 4.1 1% 1.714
The City’s Investment Policy also 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.
March 2003
The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six
(6) months.
1.84 3.98% 1.694
In summary, the City’s investments of bond proceeds held separately as of the quarter ended March
31, 2003 is as follows:
Par Value
cost
Investment Portfolio for Bond Proceeds I
7,481,999 7,738,987
7,481,999 7,738,987
I I Current Quarter Prior Quarter ll
All investments of bond proceeds have been made in accordance with the City’s Investment Policy
and the trust indenture for each issue.
PAGE THREE OF AGENDA BILL NO. 17,152
EXHIBITS FOR POOLED INVESTMENTS:
1.
2.
3.
4.
5.
6.
7.
a.
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 Transact ions
Detailed Investment Report
Fund Equity in Pooled Investments
Corporate Note and Commercial Paper Ratings
Percentage Weightings By Corporate Note Issuer
EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY:
10. Detailed Investment Report - Quarterly Report
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF MARCH 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
85,689,144
26,356,676
2,501,764
12,225,492
7,006,261
32,375,171
5,145,939
7,523,242
7,639,749
66,269,763
11,756,894
1,396,522
151,339,034
52,201,151
61,206,484
4,495,827
2,514,597
120,418,058
14,713,040
0
13,055,048
0
414,072,763
(565,600)
(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 4/04/03 **
413,507,162
".. ,
. - +, P
13
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF MARCH 31,2003
CORPORATE NOTE AND COMMERClAL PAPER RATINGS
Corporate Note Investments Meeting the Current Investment Policy:
(Ratings must be AA or better by both Moody’s and S&P)
MoodVs s&p
ALLSTATE FINANCIAL
ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO
GENERAL ELECTRIC
JERSEY CENT P&L
NORTHERN ILL GAS
OHIO BELL TEL
PACIFIC BELL
PITNEY BOWES INC
SBC COMMUNICATIONS
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
SUN AMERICA INC
SECURITY CAPITAL - GE
AA2
AA1
AA1 AA1
AAA
AAA
AA1
AA2
AA3
AA3
AA3
AAA
AA3
AA3
AAA
AA+
AA-
AA- AA-
AAA
AAA
AA
AA-
AA-
AA
AA-
AAA
AA-
AA-
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)
NONE
Investments with Subsequent Changes in Credit Rating *
ABN AMRO BANK
CAMPBELL SOUP CO
CREDIT SUISSE
DEAN W ITTER DISCV
MERRILL LYNCH
MORGAN STANLEY DEAN WITTER
WACHOVIA CORP
Moodv‘s s&p
AI A+
A3 A
AA3 A+
AA3 A+
AA3 A+
AA3 A+
AA3 A
Latest
Maturity Date Purchased
05/31/05 AA3lAA-
10101l03 AA3lAA-
0411 5107 AA31AA-
Ill01105 AA3IAA-
0911 5/04 AA3lAA-
0411 5/06 AA3lAA-
0711 5/05 AA3lAA-
Carrying Value
4,151,646
1,982,859
4,240,894
2,973,932
521 2,687
15,707,443
4,013,231
* The Cityk 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.
Market Value
4,509,517
2,033,400
4,307,880
3,281,550
5,538,433
17,151,636
4,361,940
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF MARCH 31,2003
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
1.02%
1.94%
0.45%
5.87%
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 1.03%
4.56% GENERAL ELECTRIC CAP
SECURITY CAPITAL
15,445,257.01
3,380,298.92
JERSEY CENT'P&L 2,974,560.00 0.72%
1.24%
4.54%
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 0.17%
0.46%
4.07%
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 ,I 17,700.00 0.27%
0.97% WACHOVIA CORP 4,023,404.94
Total Portfolio
* No more than 5% may be invested with a single issuer.
$41 3,217,779.76
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EXHIBIT 10