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9B# 382
MTG. 12..2. 03
TITLE: DEPT.
REPORT ON CITY INVESTMENTS
AS OF CITY AlTY:
IClTY MGR: % October 31 , 2003 DEPT. TRS
Par Value
RECOMMENDED ACTION:
Accept and file report.
Current Month Prior Month
420,381,520 420,301,380
ITEM EXPLANATION:
Cost of Investments
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 October 31 , 2003 is summarized below.
423,189,398 422,916,562
n Pooled Investment Portfolio (Cash and Securities)
Amortized Cost (1 )
Market Value (2)
422,397,307 422,365,562
429,055,756 430,952,070
(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 10/31/03.
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. 17 382
Cash Income Fiscal
Year-to-Date *
Current Prior Current Month
Month FYTD Month FYTD Income
5,816,498 4,082,729 1,733,769
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
August 2003
September 2003
Average Life
(Years) Average Yield Modified Duration
2.01 3.53% 1.857
1.98 3.50% 1.848
October 2003 1.92
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.
3.44% 1.782
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. TreasuryIFederal 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:
1.
2.
3. Yield Comparison Graph
4. Cumulative Cash Income Graph
5. Second 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 1
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EXHIBIT 6
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF OCTOBER 31,2003
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
51,371,275
27,688,701
2,103,893
48,534,159
7,752,28 1
34,144,247
4,456,495
9,738,912
8,04 1 ,I 1 8
64,126,7 1 6
14,668,284
1,368,721
192,830,933
50,697,317
62,688,079
5,066,488
2,375,482
120,827,366
1 3,9 1 0,242
0
12,658,953
0
421,391,363
1,005,944
422,397,307
(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 11/06/03.
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF OCTOBER 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
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 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
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
AA3
AA3
AA3
AA3
AI
AI
AI
AI
AA3
- S&P
A+
A+
A+
A+
A+
A+
A+
A+
A+
A
Latest
Maturitv Date Purchased
05/31 I05
0411 5/07
11101105
0911 5/04
0411 5/06
0811 5/06
05/02/06
0811 5/05
0511 2/05
0711 5/05
AA3IAA-
AA3lAA-
AA31AA-
AA3IAA-
AA3lAA-
AA3IAA-
AA3IAA-
AA3lAA-
AA2lAA-
AA3lAA-
Carrying
Value
4,130,984
4,206,102
2,979,818
5,227,371
15,683,033
7,411,564
4,015,563
1 ,I 13,937
2,038,645
4,010,730
Market
Value
4,407,398
4,332,880
3,250,020
5,394,576
16,935,256
7,741,870
4,306,700
1,205,905
2,153,100
4,248,860
* 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.
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF OCTOBER 31,2003
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
ABN AMRO BANK
ALLSTATE FINANCIAL
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 1 .OO%
8,020,253.1 9 1.90%
8,372,495.00 5.45%
7,196,309.90
7,474,695.94
4,270,881 .I2 1.01 Yo
17,489,469.62 4.93%
3,380,298.92
5,129,447.87 1.21%
15,789,131.03 4.43%
2,950,553.97
1,919,298.74 0.45%
4,058,275.56 3.51 %
7,593,579.83
1 ,I 13,832.90
2,097,205.18
1 ,I 17,700.00 0.26%
4,023,404.94 0.95%
$423,189,398.37
13