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Home My WebLink About2004-03-23; City Council; 17555; Report on City Investments as of February 29, 2004n w > 0 E a [1 .. z 0 t- u -I W z 3 0 V - a - 9B# 17,555 TITLE: HTG. 3/23/04 REPORT ON CITY AS OF INVESTMENTS IEPT. TRS February 29,2004 DEPT. - CITY ATTY: V@ CITY MGR:a RECOMMENDED ACTION: Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) Accept and file report. Current Month Prior Month 437,962,729 440,750,228 440,784,065 443,584,243 439,613,178 442,483,867 446,822,015 449,049,478 ITEM EXPLANATION: Cash Balance by Fund: General Special Revenue Debt Service 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 February 29,2004 is summarized below. 62,801,375 30,039,650 3.639.1 46 Agency Funds Reconciling Adjustments Total Treasurer’s Investment Portfolio at Amortized Cost (I) 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 2/29/04. 14,873,413 431,870 439,613,178 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. 17,555 Current Prior Month FYTD Month FYTD Cash Income Fiscal Year-to-Date * 9,955,295 9,089,768 Current Month Income 865,527 *The cash income received is adjusted for any accrued interest purchased. Average Life (Years) Average Yield December 2003 I .90 3.42% January 2004 1.92 3.39% February 2004 1.98 3.39% Modified Duration 1.776 1.797 1.851 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. 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. Treasury/Federal 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. 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 EXHIBIT 1 T T 0 s 0 0 a3 r- 03 (D a I’ m m co v) cu r 03 b 03 (D a b- m m co In -. r t- o 0 5 C 0 B 0 L .- ti 5 C 2 c C 3 e! L 0 W 3 s 3 I- W Y 5 I- Q n !i! 0 5 W s a 6 Z 1 a . Z 0 0 0 0 0 n 0 0 8 0 8 0 0 0 0 0 s 0 8 0 8 0 0 0 0 0 a o 0 0 9 0 8 0 0 0 0 0 E 3 EXHIBIT 2 g g g s 9 s 9 s 8 s 0 3 0 0 0 0 4 0 v) a, + 0 0 0 0 a W 3 z v) \o \o "" 0 0 0- 3 m m ", 3 CO v, 3 3 3 3 m m In 3 3 x 3 3 cu P 0 0 0 0 0 v) r- 00 r-- 0 0 0 3 d 0 m -- z- 0 cu 0 3 d* 00 8 0 0 0 0 2 : cu a 0 0 0- 111 d 3 In m m 3 00 v, 3 m '0, m - 4 a- $ 3 b u u b 4 e 2 lBlT 3 f 0 m H t W 5 EXHIBIT 4 d) E 0 d- 0 I 0 t s b s * * b * a s s $ \ \ L 6 EXHIBIT 5 B 0 x 0 0 N EXHIBIT 6 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa uuuuuuuuuuuuuuuuu~~uuuuuuuuuuuuuuuuuuuuuuuuuu~ !It t t t t t t t t 2 t t t t t t t 3 (I) KCL zzzzzzzzzzzzzzzzzzzzzzzz !-0 000000000000000000000000 L 0000000 > z EXHIBIT 7 Fund Equity in Pooled Investments AS OF FEBRUARY 29,2004 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 62,801,375 30,039,650 3,639,146 48,728,169 8,244,947 34,584,363 4,003 37 1 7,932,489 8,677,416 63,854,25 1 14,587,482 1,002,093 191,614,782 50,508,282 63,807,735 5,305,272 2,255,933 121,877,222 14,335,720 0 14,873,4 13 0 439,181,308 431,871 439,613,178 (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 3/05/04. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 29,2004 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 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 Maturity Date Purchased 05/31 lo5 0411 5/07 11/01/05 0911 5/04 0411 5/06 0811 5/06 05/02/06 0811 5/05 0511 2/05 0711 5/05 AA3lAA- AA3lAA- AA3lAA- AA3IAA- AA3lAA- AA3IAA- AA3IAA- AA3lAA- AA2lAA- AA3IAA- Carrying Value 4,119,177 4,186,220 2,983,182 3,002,058 15,669,084 7,361,338 4,010,806 1,113,949 2,030,228 4,009,301 Market - Value 4,359,191 4,353,400 3,238,500 3,094,140 16,827,096 7,700,420 4,271,620 1 ,I 95,545 2,125,620 4,187,300 The City's Investment Policy allow 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 FEBRUARY 29,2004 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ABN AMRO BANK ALLSTATE FINANCIAL ClTl GROU P 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. 4,228,884.98 0.96% 8,020,253.19 1.82% 8,372,495.00 5.23% 7,196,309.90 7,474,695.94 4,270,881.12 0.97% 17,489,469.62 4.73% 3,380,298.92 3,015,095.67 0.68% 15,789,131.03 4.25% 2,950,553.97 1,919,298.74 0.44% 4,058,275.56 3.37% 7,593,579.83 1,113,832.90 2,097,205.18 1,117,700.00 0.25% 4,023,404.94 0.91 % $440,784,064.54