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
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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 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
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