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Home My WebLink About2003-08-19; City Council; 17284; Report on City Investments as of 7/31/03I :@ Par Value Cost of Investments Amortized Cost (1) Market Value (2) 4B# 17,284 1 TITLE: REPORT ON CITY INVESTMENTS Current Month Prior Month 41 9,235,529 428,298,160 421,783,711 430,806,504 421,439,640 430,591,021 428,217,886 441,147,248 I MTG. 8-19-03 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects Enterprise Internal Service Aoencv Funds AS OF 50,928,868 26,599,078 3,224,791 192,927,088 1 19,246,638 13,624,103 15.133.439 .7 CITY OF CARLSBAD -AGENDA BILL Reconciling Adjustments Total Treasurer’s Investment Portfolio at Amortized Cost July 31, 2003 IEPT. TRS (244,365) 421,439,640 CITY MGR: 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 July 31, 2003 is summarized below. II Pooled Investment Portfolio (Cash and Securities) (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 7/31/03. 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. 17,284 Cash Income Fiscal Year-to-Date * Pooled Investment Interest Income Current Prior Current Month Month FYTD Month FYTD Income 1,480,597 0 1,480,597 May 2003 June 2003 July 2003 ~~ ~~ *The cash income received is adjusted for any accrued interest purchased. Average Life (Ye a rs) Average Yield Modified Duration 1.99 3.70% 1.846 2.00 3.60% 1.853 2.06 3.55% 1 .go1 I Pooled Investment Performance/Measurement II 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: I. 2. 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. First Quarter Transactions 6. Detailed Investment Report 7. 8. 9. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield 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 3 EXHIBIT 1 5 C 0 I .- 8 t 5 E 2 c E a E L 0 5 I E 0 .- 8 p' 5 : I U C e! a 0 L 5 a C 0 .- b ei: 5 E 0 E 3 I p! U L 0 s Z 5 Z 0 0 0 0 0 n o 0 8 0 8 0 0 0 0 0 s 0 8 0 0 9 0 0 0 0 0 a o 0 8 0 8 0 0 0 0 0 E 3 EXHIBIT 2 s 8 3 8 s 8 s 8 s 9 0 s 2 3 8 0 s 0 d t-4 0 0 (u -+ (u 0 0 0 0 m m :- 2 W 0 (u m 00 m! z rc, W 0 :- 3 2 0 M M d 0 rc, 2 s z W 0 0 0 0 m 5 0 0 0 W E 0 .. mm 00 m 2 s z W 0 0 0 0 0 rc, W 0 (u 0 3 a! d d 0 m z 6 < m 0 4 0 0 n H tt EXHIBIT 3 + 5- EXHIBIT 4 0 E z 0 H 1 b s 8 8 4 - t s t - I s i * I 6 EXHIBIT 5 g x 0 0 N 4 aaaaaa 2 LLLLLLLLLLLL m r . .. mm 00 00 cucu bm Or 00 .. 22 2222222 22 EXHIBIT 6 Ob mc?, m- u) E$ om mI- OI- 92 I I 0000000 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 JULY 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 c* Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 50,928,868 26,599,078 3,224,791 48,186,474 7,522,923 33,532,725 4,186,995 10,343,639 7,954,234 65,312,761 14,445,672 1,441,665 192,927,088 50,806,015 61,197,455 4,882,742 2,360,425 119,246,638 13,624,103 0 15,133,439 0 421,684,005 (244,366) 421,439,640 (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 8/06/03. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 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 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 AIIPI 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 AI A3 AA3 AAS 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 I05 1 010 1 I03 0411 5/07 11l01105 0911 5/04 0411 5/06 0811 5/06 05/02/06 0811 5/05 0511 U05 0711 5/05 AA3IAA- AA3IAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA31AA- AA31AA- AA2lAA- AA3lAA- Carrying Value 4,139,839 1,994,286 4,221,012 2,977,295 5,221,078 15,693,494 7,449,234 4,019,131 1 ,I 1 3,929 2,044,957 4,011,802 Market Value 4,444,154 2,010,540 4,315,520 3,253,650 5,457,341 16,972,484 7,792,490 4,338,060 1,223,384 2,185,420 4,296,520 The City's Investment Policy allom 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 JULY 31,2003 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ABN AMRO BANK 4,228,884.98 1 .OO% ALLSTATE FINANCIAL 8,020,253.1 9 1.90% CAMPBELL SOUP CO 1,868,682.02 0.44% 8,372,495.00 5.75% 8,421,298.13 7,474,695.94 ClTlGROUP ASSOCIATES CORP COMM CREDIT CREDIT SUISSE 4,270,881.12 1.01% 4.95% GENERAL ELECTRIC CAP SECURITY CAPITAL 17,489,469.62 3,380,298.92 MERRILL LYNCH 5,129,447.87 1.22% 4.44% . MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 0.46% 3.52% 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 1,113,832.90 2,097,205.18 1,117,700.00 0.26% 0.95% SUN AMERICA INC WACHOVIA CORP 4,023,404.94 $421,783,710.65 Total Portfolio * No more than 5% may be invested with a single issuer. /3