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Home My WebLink About2003-08-19; City Council; 17283; Report on City Investments as of 6/30/03CITY OF CARLSBAD -AGENDA BILL TITLE: AB# 17,283 MTG, 8-19-03 REPORT ON CITY INVESTMENTS AS OF JUNE 30,2003 DEPT. TRS CITY MGR: RECOMMENDED ACTION: Par Value Cost of Investments Amortized Cost (1) Accept and file report. Current Month Prior Month 428,298,160 427,054,809 430,806,504 429,397,469 430,591,021 429,398,238 ITEM EXPLANATION: Market Value (2) 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 June 30, 2003 is summarized below. 441,147,248 440,454,353 Pooled Investment Portfolio (Cash and Securities) SPecial Revenue 28.271 : Debt Service Capital Projects (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 6/30/03. 2,748,207 191,029,818 The equity portion of the various funds at the amortized value of the total portfolio is summarized below: Enterprise Internal Service Fund Equity in Pooled Investments 121,241,619 14,368,997 Reconciling Adjustments (436,293) I Aaencv Funds I I Total Treasurer’s Investment Portfolio at Amortized Cost I 430.591 AI21 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 283 I Pooled Investment Interest Income Current Prior Current Month Month FYTD Month FYTD Income Cash Income Fiscal Year-to-Date * 18,371 ,I 22 17,434,090 937,032 April 2003 May 2003 June 2003 *The cash income received is adjusted for any accrued interest purchased. Average Life Modified (Years ) Average Yield Duration 1.86 3.77% 1.721 1.99 3.70% 1.846 2.00 3.60% 1.853 Par Value cost 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. Current Quarter Prior Quarter 7,486,513 7,481,999 7,486,513 7,481,999 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 $203,382 for the month of June 2003. This situation will self correct in July 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. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. In summary, the City’s investments of bond proceeds held separately as of the quarter ended June 30, 2003 is as follows: All investments of bond proceeds have been made in accordance with the City’s Investment Policy and the trust indenture for each issue. Page 3 of Agenda Bill No. 17,283 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 FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY: 10. Detailed Investment Report - Quarterly Report DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us 3 EXHIBIT 1 a 1 0 8 0 8 0 8 a m Ln co 0 b m 2 s 0 2 m 0 ? s 0 (D 0 8 0 8 0 8 03 0 Ln : 0 : 0 0 0 0 0 .r 2 a- '4 (D 03 m b 0 0 0 0 0 b (v (v co m am 0 m U C 0 0 0 0 0 0 0 s : (v b 7 ? m 0 * m '9 * s co co 0 0 0 0 0 m b 0 d m b * m a- : 0 0 0 0 0 0 (D 0- z * 7 m 0 *- 3 d. *! b- b co co 0 (D- 0 I- o o Y z a s u- 4 J I- a ? n o a o rY I- Z o EXHIBIT 2 n c! 3 ui O c s 0 0 0 0 In 0 0 % 0 (u 5 P vr x (u d 9 vi 2 3 x 3 c\1 .. W" 0, 8 R rD 0 0 0 0 % h rD d (u d m x 0 0 0 0 n - W 8 '? (u m 8 z 0 (u 5 P In In "! 3 m 0 z m- M FA 5 EXHIBIT 3 0 d 4 0 u 1 6 % /% Jb 0 EXHIBIT 4 C S 7 L’ 9 Q) LL C 0 7 0 B > 0 Z c, 8 Q Q) v) 7 EXHIBIT 5 a w t- v) mbmbmm m 000000 0 ...... bowbbm~3j -NCVoCVN~~ ...... rmwmm- w -0000- 0 000 IIIII LLLLLLLLLL ff4w 22222252 22222 wwwww mmmmm WWWNCV 000-- eeeee eezc?2 mmmmm 00000 00000 m a-w b 0 OO-Nm wwwww 00000 22222 ..... mmmmm 00000 00000 WmNwmb 3mwmww ~00000 22222 z2e2ee om 9rc mmmmmmmm mm mom Q)Q)rmm*Q)o lnlo ama dddddddd 00000000 00 000 . 00000000 . . . . . . . ee22222e gs eee z2z e= ... w NcumNNmcuN 00000000 00000000 Q)Q)-mmwcno bb--tW-bb 00000000 22222222 ee22222!E! NN 00 00 cum am Or Lnr .. .. mor A Nmm 000 000 222 z2s cn-00 ... Nom (3 0 0 x 0 0 el EXHIBIT 6 m aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa El u~uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu ? z 0 3 v) EXHIBIT 7 Fund Equity in Pooled Investments AS OF JUNE 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) 58,480,585 28,271,312 2,748,207 47,339,088 7,496,237 33,733,626 5,163,386 10,410,443 7,955,256 66,367,687 11,351,072 1,213,022 Total Treasurer's Investment Portfolio at Amortized Cost 191,029,818 51,608,369 62,497,106 4,775,719 2,360,425 121,241,619 14,368,997 0 14,886,776 0 431,027,314 (436,293) 430,591,021 (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 7130103. ** /3 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JUNE 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 PITNEY BOWES INC SUN AMERICA INC SECURITY CAPITAL - GE AA2 AA1 AA1 AA1 AAA AA3 AAA AAA AA+ AA- AA- AA- AAA 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 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 05/31/05 10101/03 0411 5/07 11/01/05 0911 5/04 0411 5/06 0811 5106 05/02/06 0811 5/05 0511 2/05 0711 5/05 AA3IAA- AA3IAA- AA3IAA- AA3lAA- AA3lAA- M3lAA- AA3lAA- AA3IAA- AA3lAA- AA2lAA- AA3lAA- Carrying Value 4,142,791 1,991,430 4,225,983 2,976,454 5,218,980 15,696,982 7,461,790 4,020,320 1,113,926 2,047,061 4,012,160 Market Value 4,490,976 2,016,540 4,443,880 3,300,000 5,486,293 17,227,164 7,919,140 4,404,520 1,239,080 2,209,360 4,328,420 The City's Investment Policy allow 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 JUNE 30,2003 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL CAMPBELL SOUP CO ClTlGROUP ASSOCIATES CORP COMM CREDIT CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL MERRILL LYNCH MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV PITNEY BOWES INC SBC COMMUNICATIONS 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 Percent of Portfolio* 4,228,884.98 0.98% 8,020,253.19 1.86% 1,868,682.02 0.43% 8,372,495.00 5.63% 8,421,298.13 7,474,695.94 4,270,881.12 17,489,469.62 3,380,298.92 5,129,447.87 15,789,131.03 2,950,553.97 1,919,298.74 4,058,275.56 7,593,579.83 1 ,I 13,832.90 2,097,205.18 1,117,700.00 4,023,404.94 0.99% 4.84% 1.19% 4.35% 0.26% 0.93% $430,806,503.52 /5 EXHIBIT 10