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Home My WebLink About2003-05-20; City Council; 17171; Report on City Investments as of 4/30/03U t4 0 a a b a 5 a a U a al U U m rl .rl U E: 1 0 W .. Z 0 I- W < 1 W Z 3 0 W - - 4B# 17’ 17’ 5- 2 0 - 0 3 VITG. 3EPT. TRS TITLE: REPORT ON CITY INVESTMENTS AS OF April 30, 2003 RECOMMENDED ACTION: Accept and file report. Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) ITEM EXPLANATION: Current Month Prior Month 422,041,773 41 1,213,977 424,257,142 41 3,217,780 424,389,535 413,507,162 434,605,164 423,826,035 (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 4/30/03. The equity portion of the various funds at the amortized value of the total portfolio is summarized below: 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. 17,171 Current Prior Month FYTD Month FYTD Cash Income Fiscal Year-to-Date * 16,273,840 14,146,593 Current Month Income 2,127,247 Average Life Wears) Average Yield Modified Duration February 2003 March 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 1.84 3.98% 1.694 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. April 2003 The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6). months. I 1.86 3.77% 1.721 I 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 Fourth Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 W 3 s li % Y I I- 0 0 W !! 0 a k a 5 c P .- b t% 5 c B C E S e! L 0 6 c P .- s k 5 E P 5 c c e! L s z 3 z 0 0 0 0 0 n 0 0 8 0 8 0 0 0 0 0 2 0 8 0 8 0 0 0 0 0 a 0 0 8 0 8 0 0 0 0 0 CL !- 3 EXHIBIT 2 s 9 0 0 0 0 e s 8 0 0 0 2 s 8 0 0 0 k3 0 F 3 03 r- 0 t; s m nn -hl ww EXHIBIT 3 0 U d 4 I c t# Y 1 "% EXHIBIT 4 0 E 0 c) m 0 I 0 c) - t - t - t EXHIBIT 5 0000000000 0000000000 0000000000 ooomoooooo 9999999999 ~-~-~-~~~-~!.~-9~-~- 8882S88S8Z aaaaaaaaaa LLLLLLLLLLLLLLLLLLLL 1 7 8 EXHIBIT 6 888888888888888888888888888888888888888888888 0 000000000000000000000000000000000000000000000 d 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- m- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- m- -- a- a- N- Nj N- 7- N- 7- m- N- N- N- m- d N- 7.- ui m- w- mi mi d m- m- m- N- N- N- m- mi ro- v- m- m- uj m- m- m- m- m- m- m- N- 000000000000000000000000000000000000000000000 000000000000000000000000000000000000000000000 bd 2 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD 0 N 0 0 0 0 0 0 v) 0 0 0 0 LD 0 0 0 0 0 0 0 0 0 0 0 0 (.3 bs > bOOOOOOOOOOOOOOO~NO~OOOOOOkOOOO~OOOOOOOOOOOOW z4 I- z o 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF APRIL 30,2003 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 92,828,407 26,544,079 2,850,325 12,588,577 7,363,415 32,660,191 4,858,366 9,300,8 1 7 7,769,543 67,455,685 11,669,290 1,414,544 155,080,428 50,431,501 61,954,416 4,631,262 2,447,272 1 19,464,451 14,554,111 0 13,863,467 0 425,185,268 (795,733) (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. 424,389,535 ** Figures based on best estimate at the time report run on 5/06/03. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF APRIL 30,2003 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 ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO GENERAL ELECTRIC JERSEY CENT P&L NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC SUN AMERICA INC SECURITY CAPITAL - GE AA2 MI AA1 AA1 AAA AAA AA1 AA3 AA3 AAA AAA AA+ AA- AA- AA- Ala AAA AA AA- AA 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) 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 PACIFIC BELL SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's s&p AI A+ A3 A AA3 A+ AA3 A+ AA3 A+ AA3 A+ AI AA- AI AA- AI AA- AI AA- AA3 A Latest Maturitv Date Purchased 05/3 1 I05 AA3lAA- 1 010 1 /03 AA3IAA- 0411 5/07 AA3tAA- 11/01/05 AA3tAA- 09/15/04 AA3lAA- 04/15/06 AA3tAA- 0811 5/06 AA3tAA- 05/02/06 AA3tAA- 08/15/05 AA3IAA- 05/12/05 AA2tAA- 07/15/05 AA3IAA- Carrying Value 4,148,695 1,985,716 4,235,923 2,974,772 5,214,785 15,703,956 7,486,903 4,022,699 1 ,I 13,920 2,051,269 4,012,874 Market Value 4,497,741 2,026,060 4,368,440 3,293,760 5,515,407 17,195,292 7,851,190 4,387,840 1,238,200 2,212,960 4,345,340 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. /3 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF APRIL 30,2003 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FI NANCl AL CAMPBELL SOUP CO C I T I GRO U P ASSOCIATES CORP COMM CREDIT CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV NORTHERN ILL GAS PITNEY BOWES INC SBC COMMUNICATIONS OHIO BELL TEL PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL SUN AMERICA INC WACHOVIA CORP Total Portfolio * No more than 5% may be invested with a single issuer. Investment Cost 4,228,884.98 8,020,253.1 9 1,868,682.02 8,372,495.00 8,421,298.1 3 7,474,695.94 4,270,881.12 15,445,257.01 3,380,298.92 2,974,560.00 5,129,447.87 15,789,131.03 2,950,553.97 71 5,349.40 1,919,298.74 4,058,275.56 1,947,308.26 7,593,579.83 1,113,832.90 2,097,205.1 8 1,117,700.00 4,023,404.94 Percent of Portfolio* 1 .OO% 1.89% 0.44% 5.72% 1.01% 4.44% 0.70% I .21% 4.42% 0.17% 0.45% 3.96% 0.26% 0.95% $424,257,142.1 4