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Home My WebLink About2003-12-16; City Council; 17409; Report on City Investments as of 11/30/03a w U a 6 2 .. z 0 I- u -I W z 3 0 u - a - ____ AB# 17;409 MTG. 12-16-03 CITY OF CARLSBAD -AGENDA BILL 3 TITLE: REPORT ON CITY INVESTMENTS AS OF Current Month Par Value 421,271,824 Cost of Investments 424,075,528 Amortized Cost (1 ) 423,225,403 Market Value (2) 428,959,694 November 30,2003 DEPT. TRS Prior Month 420,381,520 423,189,398 422,397,307 429,055,756 CITY ATTY: le Cash Balance by Fund: Genera I Special Revenue Debt Service CaDital Proiects CITY MGR: 2s 52,114,063 26,518,773 2,304,956 193.081.107 RECOMMENDED ACTION: Enterprise Internal Service Agency Funds Reconciling Adjustments Total Treasurer’s Investment Portfolio at Amortized Cost Accept and file report. 121,214,191 14,015,338 12,642,928 1,334,047 423,225,403 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 November 30,2003 is summarized below. (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 11/30/03. The equity portion of the various funds at the amortized value of the total portfolio is summarized below: Fund Equity in Pooled Investments 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. 17,409 Cash Income Fiscal Year-to-Date * C u r ren t Prior Current Month Month FYTD Month FYTD Income 6,631,387 5,816,498 814,889 *The cash income received is adjusted for any accrued interest purchased. September 2003 October 2003 Average Life (Years) Average Yield Modified Duration 1.98 3.50% 1.848 1.92 3.44% 1.782 November 2003 I I I 1.90 3.44% 1.765 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 fhe 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. TreasurylFederal 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. 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 Second Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 6 z . s z 0 0 0 0 0 n o 0 8 0 8 0 0 0 0 0 2 0 8 0 8 0 0 0 0 0 a o 0 8 0 8 0 0 0 0 0 IY + z 0 r 7 0 0 W a 0 0, @? r I- o Y z 2 2 3 EXHIBIT 2 0 0 0 0 2 3 00" vl 00 a 3 0 vl 00 3 W 3 00 ", 3 00 m 0 0 0 0 0 0 0 0 Wi 00 3 - 00 0 0 0 0 d N d W hl Y, m. m 00 3 \o 00, 3 M 00 "! - 00 .. hl 3 m ? M M i' m" EXHIBIT 3 f t 4 0 m t;It 5 EXHIBIT 4 8 0 d= 0 cr) 0 I F4 n v 0 s 2 1 m 0 h s I . 1 I b I b 8 * 1 t - 8 I I * * P b * 8 t EXHIBIT 5 22222 d 2222222 7 I 0000 0000 roa)v)(D 0000 0000 **0w --lnco --00 cumcum 0000 0000 **0co -0-0 2222 eccc! 2222 SSX$ 8 EXHIBIT 6 0000000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000000 a K? 99~~~~999~~9o~o~9999~999~~~~~~o~o~o~o~o~~~o~~~~~~~~~~~~~~~ 00000000000000000~00000000000000N0000000000000 8888888888888888888888888888888888888888888888 3 21 0 0 0 0 0 0 0 0 0 0 0 In 0 0 0 0 0 m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I’ 0 0 0 v) 0 Ei > 0000000w000m000~0m00oooooo-ooooo~oooooooI’oo~mo 7- uj a- N- a- m- N‘ -- w- m- a- w- w- m- m- m- m- 7- d m- m- d m- m- d d w- m- m- m- m- N- d m- a- m- m- m- m- 0- 7- m- m- m- m- m- s> a aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu~u 214 a a a a a a a a a ~Luuuuuuuuu > z zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz 0000000000000000000000000000000 /o 00000000000 00000000000 0 (v 2 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF NOVEMBER 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) Total Treasurer's Investment Portfolio at Amortized Cost 52,114,063 26,518,773 2,304,956 48,641,275 7,789,650 34,167,OO 1 4,503,526 8,950,138 8,067,356 64,901,975 14,708,516 1,351,671 1 93,081,107 50,308,678 63,498,169 5,045,041 2,362,303 121,214,191 14,015,338 0 12,642,928 0 421,891,357 1,334,046 423,225,403 (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 12/04/03, EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF NOVEMBER 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 SBp 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 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 05/31 105 0411 5/07 11/01/05 0911 5104 0411 5/06 0811 5/06 05/02/06 0811 5/05 0511 2/05 0711 5/05 AA3lAA- AA31AA- AA3IAA- AA3IAA- AA3IAA- AA3lAA- AA3IAA- AA3IAA- AA2lAA- AA3IAA- Carrying 4,128,033 4,201,131 2,980,659 5,229,469 15,679,546 7,399,007 4,014,374 1 ,I 13,940 2,036,541 4,010,373 Market Value 4,385,148 4,311,680 3,234,570 5,373,204 16,829,504 7,670,650 4,281,540 1 ,199,422 2,141,420 4,227,040 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. /3 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF NOVEMBER 30,2003 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 1.89% 8,372,495.00 5.43% 7,196,309.90 7,474,695.94 4,270,881.12 1.01 % 17,489,469.62 4.92% 3,380,298.92 5,129,447.87 1.21% 15,789,131.03 4.42% 2,950,553.97 I ,919,298.74 0.45% 4,058,275.56 3.50% 7,593,579.83 1 ,I 13,832.90 2,097,205.1 8 1 ,I 17,700.00 0.26% 4,023,404.94 0.95% $424,075,527.84