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Home My WebLink About2004-03-02; City Council; 17518; Report on City Investments as of Jan. 31, 2004=# 17 518 UlTG. 3/2/04 TITLE: REPORT ON CITY INVESTMENTS AS OF RECOMMENDED ACTION: Accept and file report. January 31,2004 IEPT. TRS ITEM EXPLANATION : CITY MGR: 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 January 31,2004 is summarized below. I Current Month Prior Month Pooled Investment Portfolio (Cash and Securities) Par Value 440,750,228 433,621,208 Cost of Investments 443,584,243 436,337,363 Amortized Cost (1) Market Value (2) (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 1/31/04. 442,483,867 4354 1 0,4 16 449,049,478 442,213,757 The equity portion of the various funds at the amortized value of the total portfolio is summarized below: a General Special Revenue Debt Service Capital Projects Enterprise Internal Service Agency Funds Reconciling Adjustments Total Treasurer’s Investment Portfolio at Amortized Cost Fund Equity in Pooled Investments Cash Balance bv Fund: 62,731,242 29,398,607 3,582,365 192,693,971 123,440,898 13,998,688 14,908,085 1,730,011 442,483,867 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. 17 518 Current Prior Month FYTD Month FYTD Cash Income Fiscal Year-to-Date * 9,089,768 7,744’559 Current Month Income 1,345,210 Pooled Investment PerformancelMeasurement Average Life All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised January 20, 2004. 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. (Years) Average Yield November 2003 1.90 3.44% December 2003 1.90 3.42% January 2004 I .92 3.39% 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. Modified Duration 1 I .765 1.776 1.797 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. Third 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 Department Contact: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us d EXHIBIT 1 5 C s .- b h 5 C s .c1 C 3 0 E L Q z \ a -r z 0 0 0 0 0 n 0 0 8 0 0 9 0 0 0 0 0 2 0 8 0 8 0 0 0 0 0 a 0 0 0 9 0 8 0 0 0 0 0 IY I- 3 EXHIBIT 2 s 8 s 8 s 8 s 8 s 9 s 2 cu s 8 s x s 2 c4 E 0 0 0 0 0 m 3 0 2 in 00 r- W a\ 2 W W f 2 ob x -e 3 5 3 3 cu d- 64 s x W 0 0 0 0 0 0 0 0 r- E: W- 00 s t' d n 0 0 0 0 0 00 r- 2- W a\ 0 2 VI cu : 3 3 3 nn 3hl ww ei W w 3 m e i 0 I t EXHIBIT 4 b b b 8 * * b 1 a 8 8 s i c- 6 EXHIBIT 5 00000 00000 00000 0- t 0- 0- 0- 00000 omooo omooo omooo In- cui m- m" m- 000 IIIIZ LLLLLLLL ffW2 22222 p! W L 0 sg a3 cu 03 w u-5 d 0 0 0 $0 e! 2 0 00 mm 0-I LLI LLLL 22 EXHIBIT 6 LI - m u... 0000000000000000 0 0000000000000000000000000 0000000000000000000000000 0000000000000000000000000 0000000000000000000000000 0000000000000r-000r0booooo ~NN~-Orrm0NN-0NNNrr-mmmNN 9999999999999999 9999999999999999999999999 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- 99999999999999999~~9t99999 r N Zm -4 El2 2 2 t 2 t t t 2 t t 2 t t t t i W nzzzzzzzzzzzzzzzz El" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I- z 0000000 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 JANUARY 31,2004 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 62,731,242 29,398,607 3,582,365 48,819,968 7,902,992 34,550,999 4,688,714 7,930,977 8,667,340 64,242,485 14,558,037 1,332,458 192,693,971 51,625,391 64,269,545 5,287,772 2,258,190 123,440,898 13,998,688 0 14,908,085 0 440,753,857 1,730,010 442,483,867 (I) 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 2/05/04. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,2004 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 SECURITY CAPITAL - GE SUN AMERICA INC 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 05/31/05 0411 5/07 11l01l05 0911 5104 0411 5/06 0811 5/06 05/02/06 0811 5/05 0511 2/05 0711 5/05 AA3lAA- AA3lAA- AA3lAA- AA31AA- AA3IAA- AA3lAA- AA3lAA- AA3lAA- AA21AA- AA3lAA- Carrying - Value 4,122,129 4,191,191 2,982,341 3,002,376 15,672,571 7,373,894 4,011,995 1,113,833 2,032,333 4,009,659 Market - Value 4,368,400 4,328,720 3,236,640 3,106,500 16,846,008 7,697,840 4,271,280 1 ,I 96,982 2,130,620 4,203,740 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 JANUARY 31,2004 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ABN AMRO BANK ALLSTATE FINANCIAL ClTlGROUP ASSOCIATES CORP COMM CREDIT CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL MERRILL LYNCH MORGAN STANLEY DEAN WITTER DEAN W ITTER 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. 4,228,884.98 0.95% 8,020,253.1 9 1.81% 8,372,495.00 5.19% 7,196,309.90 7,474,695.94 0.96% 4,270,881 .I2 17,489,469.62 4.70% 3,380,298.92 3,015,095.67 0.68% 15,789,131.03 4.22% 2,950,553.97 1,919,298.74 0.43% 4,058,275.56 3.35% 7,593,579.83 1 ,I 13,832.90 2,097,205.18 1,117,700.00 0.25% 4,023,404.94 0.91 % $443,584,243.21 /3