HomeMy WebLinkAbout2003-10-28; City Council; 17356; Report on City Investments as of 9/30/03AB# 17.356 TITLE:
REPORT ON CITY INVESTMENTS
AS OF SEPTEMBER 30,2003 MTG. 10-28-03
DEPT. TRS
RECOMMENDED ACTION:
CITY ATTY:
CITY MGR:
Accept and file report.
Par Value
Cost of Investments
Amortized Cost (I)
Market Value (2)
ITEM EXPLANATION:
Current Month Prior Month
420,301,380 4 1 9,754,184
422,916,562 422,263,616
422,365,562 421,868,477
430,952,070 427,898,87 1
(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 9/30/03.
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. 17,356
I Pooled Investment Interest Income
Cash Income Fiscal
Year-to-Date *
Current Prior Current Month
Month FYTD Month FYTD Income
4,082,729 2,447,439 1,635,290
*The cash income received is adjusted for any accrued interest purchased.
July 2003
Average Life Modified
(Years) Average Yield Duration
2.06 3.55% 1 .go1
August 2003
September 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.
2.01 3.53% 1.857
1.98 3.50% 1.848
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.
Current Quarter
The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six
(6) months.
Prior Quarter
In summary, the City’s investments of bond proceeds held separately as of the quarter ended
September 30, 2003 is as follows:
7,348,597 7,48631 3 IPar Value
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 AB #17,356
EXHIBITS FOR POOLED INVESTMENTS:
1.
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
EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY:
IO. Detailed Investment Report - Quarterly Report
EXHIBIT FOR SUMMARY OF OUTSTANTDING HOUSING LOANS:
11. Detailed of Outstanding Housing Loans - Quarterly Report
DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us
EXHIBIT 1
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EXHIBIT 6
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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 SEPTEMBER 30,2003
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
53,147,680
27,277,648
1,987,105
48,446,809
7,694,492
33,889,189
4,260,510
10,218,721
8,016,809
65,123,325
14,652,751
1,495,898
193,798,504
51,262,142
62,340,184
4,909,889
2,369,187
120,881,402
13,928,008
0
12,342,656
0
423,363,003
(997,442)
422,365,562
(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 10/03/03.
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF SEPTEMBER 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(Lp
ALLSTATE FINANCIAL
ASSOCIATES CORP
C l TlG ROU P 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 AIlPl 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
A1
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
05/31 105
1 Ol01103
0411 5/07
11l01I05
0911 5/04
0411 5/06
0811 5/06
05/02/06
0811 5/05
0511 2/05
0711 5/05
AA31AA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA2lAA-
AA3IAA-
Carrying
Value
4,133,936
2,000,000
4,211,072
2,978,977
5,225,274
15,686,520
7,424,120
4,016,752
1,113,934
2,040,749
4,011,088
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.
Market Value
4,446,640
2,000,000
4,384,920
3,275,760
5,419,063
17,065,972
7,851,710
4,351,880
1,221,234
2,177,960
4,278,480
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF SEPTEMBER 30,2003
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
ABN AMRO BANK 4,228,884.98 1 .OO%
ALLSTATE FINANCIAL 8,020,253.19 1.90%
CAMPBELL SOUP CO 1,868,682.02 0.44%
ClTlGROUP
ASSOCIATES CORP
COMM CREDIT
8,372,495.00 5.74%
8,421,298.13
7,474,695.94
CREDIT SUISSE 4,270,881 .I2 1.01%
4.93% GENERAL ELECTRIC CAP
SECURITY CAPITAL 17,489,469.62
3,380,298.92
MERRILL LYNCH 5,129,447.87 1.21%
4.43% MORGAN STANLEY DEAN WITTER
DEAN WITTER DISCV 15,789,131.03
2,950,553.97
PITNEY BOWES INC 1,919,298.74 0.45%
3.51% SBC COMMUNICATIONS
PACIFIC BELL
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
4,058,275.56
7,593,579.83
I, 1 13,832.90
2,097,205.1 8
SUN AMERICA INC 1,117,700.00 0.26%
0.95% WACHOVIA CORP 4,023,404.94
Total Portfolio $422,916,561.57
* No more than 5% may be invested with a single issuer.
EXHIBIT 10
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