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HomeMy WebLinkAbout2004-02-03; City Council; 17481; Report on City Investments as of Dec. 31, 2003DEPT. ‘D. ,I,+ 9B# 17,481 TITLE: CITY A?& CITY MGR:a REPORT ON CITY INVESTMENTS AS OF DECEMBER 31,2003 \IITG. 2.-3-.04 DEPT. TRS Accept and file report. I Current Month Prior Month Par Value 433,621,208 421,271,824 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 December 31,2003 is summarized below. Pooled Investment Portfolio (Cash and Securities) 436,337,363 424,075,528 Amortized Cost (1 ) Market Value (2) 435,410,416 423,225,403 442,213,757 428,959,694 (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 12/31/03. 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 ,- 481 Current Prior Month FYTD Month FYTD Cash Income Fiscal Year-to-Date * 7,744,559 6,631,387 Current Month Income I ,I 13,172 *The cash income received is adjusted for any accrued interest purchased. October 2003 Average Yield Duration I Modified Average Life (Years) 1.92 3.44% 1.782 November 2003 1.90 3.44% 1.765 December 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. 1.90 3.42% 1.776 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. 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 December 31,2003 is as follows: Par Value cost 7,351,699 7,348,597 7,351,699 7,348,597 All investments of bond proceeds have been made in accordance with the City’s Investment Policy and the trust indenture for each issue. 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 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 3 EXHIBIT 1 w 3 3 I- w Y a 2 k 8 ; 0 w 0 a a i z a t 0 0 0 0 0 n 0 0 0 9 0 8 0 0 0 0 0 s 0 8 0 8 0 0 0 0 0 a 0 0 0 9 0 8 0 0 0 0 0 E EXHIBIT 2 ui P) Y s % k 0 0 0 0 r. 5 h 0 2 '", W W d e .e 3 3 B 1;g cd .Y C 0 0 0 0 0 0 0 Q\ d z E: W" 00 0 0 0 0 00 0 d 3 0 rl e/ n d W P 0 W m 2 3 m 2 '"? W \o d 0" c\1 fl m 3 M .. 3 I L L I tt I i" EXHIBIT 4 1 * s a * * 8 t a a * 7 - I 8 * 8 * * \ b- 7 EXHIBIT 5 d I- mmmm 0000 0000 lnlcolc 2222 0 0 0 0 2 2 ? 0 0 0 2 - s 0 U E cy I- 9 EXHIBIT 6 rn aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa El uuuuuuuuuuuuuuuuuuuuuuuuuu~uuuuuuuuuuuuuuuuuuu /o z 000000000000~ 000000000000IC - J K$8888888888888 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- O- >000000000000N ~<OOOOOOOOOOOO~ 0000000000000000000000000000 0000000000000000000000000000 0000000000000000000000000000 0000000000000000000000000000 moooooooooooooICooo-ohoooooo0 0000000000000000000000000000 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- m- 0- 0- 0- d 0- d 0- 0- 0- 0- 0- 0- 0- N~0~0~0~0~0~0~0~0 0 0 0 0 0 0 0 0 0 -om* 0 0 0 00 0-0- N v) N N In - m - r- ~6 mi N- N- -- CQ- N- N- N- -- - 7- C6 CC- W- N' N- - V KCL zzzzzzzzzzzzzzzzzzzzzzzzzzzz I-0 0000000000000000000000000000 m N nzzzzzzzzzzzzzz ;I0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z Q + Z w 0000000 Id 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 DECEMBER 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 ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 60,056,382 27,472,090 3,233,065 48,758,969 7,837,657 34,408,804 4,626,148 8,102,080 8,271,657 63,462,131 14,740,150 2,677,160 192,884,756 51,921,102 63,994,581 5,218,490 2,363,235 123,497,408 14,091,754 0 14,042,514 0 435,277,969 132,447 435,410,416 (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 1/07/04. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 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 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 DlSCV MERRILL LYNCH MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's - S&P AI A+ AA3 A+ AA3 A+ AA3 A+ AA3 A+ AI A+ AI A+ AI A+ AI A+ AA3 A Latest Maturitv Date Purchased 0513 1 105 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 AA3lAA- AA31AA- AA3lAA- AA3lAA- AA3IAA- AA31AA- AASIAA- AA31AA- AA2IAA- AA31AA- Carrying Value 4,125,081 4,196,161 2,981,500 5,231,567 15,676,058 7,386,451 4,013,184 1,113,943 2,034,437 4,010,016 Market 4,383,355 4,334,680 3,241,440 5,351,635 16,8943 92 7,748,550 4,284,600 1,200,614 2,139,640 4,218,880 * 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 DECEMBER 31,2003 PERCENTAGE WHGHTINGS BY CORPORATE NOTE ISSUER Percent of Portfolio* 0.97% 1.84% 5.28% Investment Cost ABN AMRO BANK 4,228,884.98 ALLSTATE FINANCIAL 8,020,253.19 CITIGROUP ASSOCIATES CORP COMM CREDIT 8,372,495.00 7,196,309.90 7,474,695.94 CREDIT SUISSE 4,270,881.12 0.98% 4.78% GENERAL ELECTRIC CAP SECURITY CAPITAL 17,489,469.62 3,380,298.92 MERRILL LYNCH 5,129,447.87 1.18% 4.29% MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 PITNEY BOWES INC 1,919,298.74 0.44% 3.41 % SBC COMMUNICATIONS PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL 4,058,275.56 7,593,579.83 1 ,I 13,832.90 2,097,205.18 SUN AMERICA INC 1 ,I 17,700.00 0.26% 0.92% WACHOVIA CORP 4,023,404.94 Total Portfolio * No more than 5% may be invested with a single issuer. $436,337,363.40 EXHIBIT 10 C C u) U u) 2 2 1; I- !- C * u) uI 22 CI- EE dd u) u) x C m 3s m v) ** zz mm .3 * z * z m m I- 0 sg . 0 0 SS zz S z s Sm z(4 .r s SO zt (D s m 03 lrj lrj lrjo lrjoo s s (I) E. c c a E 8 e! I v c K E c K a E 8 e! k e! 8 B d Q) EXHIBIT 1'1