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Home My WebLink About2003-06-24; City Council; 17212; Report on City Investments as of 5/31/03CITY OF CARLSBAD - AGENDA BILL 9B# 17,212 MTG. 6/24/03 ~ TITLE: REPORT ON CITY INVESTMENTS AS OF May 31,2003 DEPT. TRS Par Value -3 DEPT. H Current Month Prior Month 427,054,809 422,041,773 CITY MGa Cost of Investments Amortized Cost (1 ) Market Value (2) RECOMMENDED ACTION: 429,397,469 424,257,142 429,398,238 424 , 389,535 440,454,353 434,605,164 Accept and file report. Special Revenue Debt Service Capital Projects Enterprise Internal Service Agency Funds Reconciling Adjustments Total Treasurer’s Investment Portfolio at Amortized Cost ITEM EXPLANATION: 27,460,980 3,011,042 156,664,430 120,735,073 14,327,192 15,078,933 (1,083,159) 429,398,238 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 May 31,2003 is summarized below. Pooled Investment Portfolio (Cash and Securities) II (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 5/31/03. 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 by Fund: I Genera I 93.203.745 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 I 212 Current Prior Month FYTD Month FYTD Cash Income Fiscal Year-to-Date * 17,434,090 16,273,840 Current Month Income 1,160,250 Average Life (Years) Average Yield Modified Duration March 2003 April 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. - 1.84 3.98% 1.694 1.86 3.77% 1.721 The City’s Investment Policy requires that investments not less than $1 40,000,000 mature within one year. Exhibit 2 shows that the portfolio is under this limit by $65,464 for the month of May 2003. This situation will self correct in June 2003. May 2003 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. 1.99 3.70% 1.846 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. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield 2. 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. Fourth Quarter Transactions 6. Detailed Investment Report 7. 8. 9. Investment Portfolio Breakdown Of Maturities Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci .carlsbad. ca. us 02 EXHIBIT 1 s C 0 a .- b rt 5 C 0 C S 0 a .c, i! a 1 z a 1 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 E $ 0 1= 3 0. c 2 - * v) O > C C m .- L P m 0 0 N m h 0- 9 s m U .- L e! 8 CO 2N oni C 0 U 2 o L ug v) c EXHIBIT 2 n t! s 8 8 8 8 8 8 8 8 '? m d 8 6 3 Pi 8 0 - 8 8 0 8 0 3 v; N 3 d Q Y 0 0 0 0 3 Pi 0 2 p, 2 Pi 00 m r-, bm 8 0 v) 3 0- w m r- N 2 00 10 0 3 3 0 0 0 0 0 r- m 3 m 3 Pi- s 0 0 .. 3 QI CA 4 0 0 0 0 0 hl 8 x 0 In Pi 3l r- N hl 00 In Q? 3 .. d e EXHIBIT 3 0 L a xa WI *+ 5 EXHIBIT 4 \ - t - t - t - t - 6 EXHIBIT 5 $$ 94 00 cucu Q W QQ ww l-I- v)v) Q W I- v) aa n ww W I- v)v) +I- v) s< ssss zz zzzz 0 W Y 00 II LLLL ff 2222222222 22222252 22 U I1 a, U E - c a K w ki 4 0 G c c 9 p! s 00 II LLLL ff 22222222 22 EXHIBIT 6 tr dn Ym aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa El uuuu~uuuuuuuuuuuuuuuuuuuuuuuuuuuuu~uuuuuuuuuu 000000000000000000000 000000000000000000000 000000000000000000000 000000000000000000000 000000000000000000000 d 0- m- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- m- 0- 0- 0- oor-mooooooooooooor-ooo r-9"~~99999999999999999 (v-(vm(v(v~~-m-rmm(v(v-m~(v(v 2 z 0 3 cn I- z - z o 6 0 5 B 0 IY 0 I- z W 0 T c a EXHIBIT 7 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 Fund Equity in Pooled Investments AS OF MAY 31,2003 Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Total 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 93,203,745 27,460,980 3,011,043 12,653,357 7,446,474 33,048,515 4,990,648 10,419,320 7,935,922 67, I 18,026 11,657,706 1,394,462 156,664,430 51,337,963 62,232,941 4,698,945 2,465,224 120,735,073 14,327,192 0 15,078,933 0 430,481,397 (1,083,159) 429,398,230 (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 6/06/03. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 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 S&P) Moodv's - S&P ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO GENERAL ELECTRIC NORTHERN ILL GAS PITNEY BOWES INC SUN AMERICA INC SECURITY CAPITAL - GE AA2 AA1 AA1 AA1 AAA AA1 AA3 AAA AAA AA+ AA- AA- AA- AAA AA AA 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 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 AI A3 AA3 AA3 AA3 AA3 AI AI AI AI AA3 - S&P A+ A A+ A+ A+ A+ A+ A+ A+ A+ A Latest Maturitv Date Purchased 0513 1 lo5 1 010 1 lo3 0411 5/07 11/01/05 0911 5/04 0411 5/06 0811 5/06 05/02/06 0811 5/05 05/12/05 0711 5/05 AA3lAA- AA3IAA- AA3lAA- AA3IAA- AA3IAA- AA3lAA- AA3lAA- AA31AA- AA3lAA- AA2lAA- AA3lAA- Carrying Value 4,145,743 1,988,573 4,230,953 2,975,613 5,216,883 15,700,469 7,474,347 4,021,509 1 ,I 13,923 2,049,165 4,012,517 Market Value 4,506,828 2,021,080 4,442,560 3,307,620 5,504,596 17,288,620 7,941 ,I 10 4,410,880 1,243,135 2,217,900 4,339,700 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. 13 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 31,2003 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ABN AMRO BANK 4,228,884.98 0.98% ALLSTATE FINANCIAL 8,020,253.19 1.87% CAMPBELL SOUP CO 1,868,682.02 0.44% ClTlGROUP ASSOCIATES CORP COMM CREDIT 8,372,495.00 5.65% 8,421,298.1 3 7,474,695.94 CREDIT SUISSE 4,270,881.12 0.99% 4.86% GENERAL ELECTRIC CAP SECURITY CAPITAL 17,489,469.62 3,380,298.92 MERRILL LYNCH 5,129,447.87 1.19% 4.36% MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 NORTHERN ILL GAS 71 5,349.40 0.17% 0.45% 3.46% PITNEY BOWES INC 1,919,298.74 SBC COMMUNICATIONS PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL 4,058,275.56 7,593,579.83 1 ,I 13,832.90 2,097,205.1 8 0.26% 0.94% SUN AMERICA INC I ,I 17,700.00 WACHOVIA CORP 4,023,404.94 Total Portfolio $429,397,469.09 * No more than 5% may be invested with a single issuer.