The URL can be used to link to this page

Home My WebLink About2004-06-01; City Council; 17645; Report on City Investments as of April 30, 2004AB# 17,645 TITLE: REPORT ON CITY INVESTMENTS AS OF APRIL 30,2004 rllTG. 6-1-04 IEPT. TRS RECOMMENDED ACTION: DEPT.H - CITY ATTY: CITY MGR: w!!!k? -a- Accept and file report. Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) ITEM EXPLANATION: Current Month Prior Month 453,938,302 439,224,341 456,859,198 442,299,957 455,337,739 440,841,879 458,653,716 448,226,518 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 April 30, 2004 is summarized below. Genera!§ 7 1 .O -A Pooled Investment Portfolio (Cash and Securities) II (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 of4/30/04. detailed breakc The equity portion of the various funds in the total portfolio is summarized in the graph below. Fund balances are restricted for various purposes. See Exhibit 7 for a more )wn. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Internal Service $1 4. Agency $15.6 Capital Projects $ 195.5 Enterprise $12 3.8 ‘-%<\ Total Treasurer’s Investment Portfolio at Amortized Cost $455.3 Million PAGE TWO OF AGENDA BILL NO. 17,645 Cash Income Fiscal Year-to-Date * II Pooled Investment Interest Income II Current Prior Current Month Month FYTD Month FYTD Income 13,185,856 11,662,301 1,523,555 February 2004 *The cash income received is adjusted for any accrued interest purchased. Average Life (Years) Average Yield Modified Duration 1.98 3.39% 1.851 Pooled Investment Performance/Measurement March 2004 1.98 3.28% 1.855 April 2004 2.1 1 3.32% 1.943 I I I 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 General Electric Corp exceeding this limitation as a result of the purchase of corporate paper in April 2004. This situation will self-correct in June 2004 when the General Electric Corporation issue matures. 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 Fourth Quarter Transactions Detailed Investment Report 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 02 EXHIBIT 1 0 0 0 0 m a3 a3 N co *. 0 0 0 0 N a, d *. o? 0 m 2 co- 9 co m 0 0 0 3 EXHIBIT 2 h W hi s 8 $ s $ 8 0 c? 0 4 0 c! 0 0 0 0 '"- 0 m m 2 * In 2 00 2 0 a 8 13 W m "! 00- 00 z & m d a! ci? 00 hi r4 3 3 0" rr, s 2 W 0 0 0 0 0 0 3 5 8 M 4 0 d d 2 d .. 6 m hi fff hi R 0 0 0 W m 2 2 m 3 In 2 00- 00 z ct 0 4 14: 64 0 m 0 0 f i c Y / 1 L I 3 I EXHIBIT 3 c 5 EXHIBIT 4 + s 1 \ \ L 6 oomoooooocn OOmOlnOOOOco 0000000000 0000000000 88888 8 x $. $$pg 0 00000 0 m(Dmw0 --cucum 22222 cobW(0w 00000 00000 momwo --(v(vm oo-oo 22222 3:5gg EXHIBIT 6 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa uuuuuuu~uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu in za zzzzzzzzzzzzzzzz I-0 0000000000000000 000000rr0-0-0000 0000000000000000 --wcocDlD--w-m 2 0000000000000000 g g~g~~22""2222222 2 $$zz$g2gc55g2g2$$ rrgg-00Nr0000Nm0 4 W 0000000 n f (3 EXHIBIT 7 Fund Equity in Pooled Investments AS OF APRIL 30,2004 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 Storm Water 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 70,958,420 30,130,799 3,944,647 48,697,524 8,510,784 35,706,221 4,113,362 7,903,125 9,129,024 65,747,135 14,657,271 1,013,248 195,477,692 51,079,100 64,188,83 1 5,425,934 998,450 2,147,324 123,839,639 13,984,632 0 15,636,153 0 453,971,982 1,365,757 455,337,739 (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 4/05/04, If EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF APRIL 30,2004 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 AI/PI 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 8/07 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- AA3IAA- AA3IAA- AA3IAA- AA3IAA- AA3IAA- AA3iAA- AA3lAA- AA2IAA- AA3IAA- Carrying Value 4,113,274 4,176,280 2,984,863 3,001,422 15,662,110 7,336,224 4,008,427 1 ,I 13,955 2,026,020 4,008,587 Market Value 4,298,310 4,265,200 3,195,030 3,062,760 16,614,064 7,553,270 4,211,800 1,180,595 2,103,520 4,135,920 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. /a EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF APRIL 30,2004 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ClTl G ROU P ASSOCIATES CORP COMM CREDIT CREDIT SUISSE GENERAL ELECTRIC CAP GENERAL ELECTRIC CAP (CP) 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 Investment Cost 4,228,884.98 8,020,253.1 9 1,591,525.00 7,196,309.90 7,474,695.94 4,270,881.12 17,489,469.62 4,991,500.00 3,380,298.92 3,015,095.67 15,789,131.03 2,950,553.97 1,919,298.74 4,058,275.56 7,593,579.83 1 ,I 13,832.90 2,097,205.1 8 1,117,700.00 4,023,404.94 Percent of Portfolio* 0.93% 1.76% 3.56% 0.93% 5.66% 0.66% 4.10% 0.42% 3.25% 0.24% 0.88% $456,859,197.64 * No more than 5% may be invested with a single issuer.