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Home My WebLink About2004-09-14; City Council; 17777; Report on City Investments as of July 31, 2004n w U 0, a i5 a .. z 0 I- U J U z 3 0 U - a - AB# 17,777 TITLE: MTG. 9/14/04 REPORT ON CITY INVESTMENTS - DEPT. TRS AS OF JULY 31,2004 CITY OF CARLSBAD -AGENDA BILL & Par Value I Cost of Investments Amortized Cost (1 ) Market Value (2) Current Month Prior Month 467,406,313 469,660,793 469,966,823 472,588,913 468,460,332 470,933,842 470,404,214 471,876,471 RECOMMENDED ACTION: Accept and file report. ITEM EXPLANATION: (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 7/31/04. 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 detailed breakdown. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Internal Service$ 6. Capital Projects Agency $1 6.8 Enterprise $12 3 .4 ‘i,, Total Treasurer’s Investment Portfolio at Amortized Cost $468.5 Million PAGE TWO OF AGENDA BILL NO. 17,777 Cash Income Fiscal Year-to-Date * Pooled Investment Interest Income Current Prior Current Month Month FYTD Month FYTD Income 1,354,925 0 1,354,925 May 2004 June 2004 July 2004 *The cash income received is adjusted for any accrued interest purchased. Average Life (Years) Average Yield Modified Duration 2.20 3.40% 2.01 7 2.25 3.46% 2.055 2.21 3.45% 2.029 Pooled Investment PerformancelMeasurement II 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 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. First 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 W 3 s L Y p! Q: I I- 8 0 W N I- p! 0 I 4 0 0 0 0 0 (D (D t *" 3 r 2 d 0 0 b d # Y 3 EXHIBIT 2 n s s 8 s 8 s 8 s 8 s 2 8 4 0 0 hl 0 0 R 0 [i z & 0 0 0 0 0 W W M h 0 0 2 s In 3 0 * ne, n s ‘? 00 W 0 0 0 0 0 tl - 00” 00 3 0 r- 0 3 hl W fff 3 r-: 0 0 0 0 0 b 2 W 00 M W W 2 hl P d W d 3 * W 3 nn 3hl ww n u 2 4 EXHIBIT 3 z 0 H d 0 H L JL WJ 3 A3 t tl 8 8 a 8 i b 8 8 s 9 a + t 8 + t a 8 i 8 8 8 8 b + a + < 8 8 I, I EXHIBIT 4 gg aa zz $2 LLLL bb 00 00 Ncu \\ $2 sa 00 00 00 00 ro- 00 rw 00 22 .. v) 0 0 c;' B z 2 0 (Y p! W U c v) L L 2 e EXHIBIT 5 7 EXHIBIT 6 I- ooooooooooooooWomooooooooooooo 99999999999999"9'?"999999999999 z N zzzzzzzzzzz 00000000000 4 I-- - (D 0000000000000000000000000 0 ggggggggggggggggggggggggg g 8~-~q~qoo~o~o~o~o~(D~qqqqqqqq~qq~~ z 25 wooooooooooooooooooooooooo 0 z5 4 ng OI-00000000000000000000N bk ~~0~000000000000000000000000 0- a J o 2- 0- 16 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- Q) N-r-mmmNN-brNNNNmmNInmbmmm (D- 03 0000000 I- F EXHIBIT 7 Fund Equity in Pooled Investments AS OF JULY 31,2004 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 Agency Funds Redevelopment Funds (1 ) Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 66,440,994 33,343,698 3,977,747 49,880,478 8,868,270 37,123,320 4,340,365 10,117,435 8,995,796 68,432,430 18,595,785 31 1,481 206,665,360 50,203,781 65,565,754 5,588,042 207,349 1,799,273 123,364,199 16,392,844 16,771,085 0 0 466,955,927 1,504,405 468,460,332 (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 8120104. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 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 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 Maturitv Date Purchased 05/31/05 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- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA3lAA- AA2lAA- AA3lAA- Carrying Value 4,104,419 4,161,369 2,987,386 3,000,467 15,651,648 7,298,555 4,004,859 1 ,I 13,964 2,019,708 2,007,159 Market Value 4,231,276 4,226,880 3,149,400 3,018,660 16,389,652 7,467,380 4,156,380 1,164,308 2,073,960 2,090,240 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 JULY 31,2004 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Invest men t Cost Percent of Portfolio* ABN AMRO BANK ALLSTATE FINANCIAL ClTl G ROU 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 0.90% 8,020,253.1 9 1.71% 1,591,525.00 2.14% 2,000,784.90 6,450,119.94 4,270,881.12 0.91 % 17,489,469.62 4.44% 3,380,298.92 3,015,095.67 0.64% 15,789,131.03 3.99% 2,950,553.97 1,919,298.74 0.41 % 4,058,275.56 3.16% 7,593,579.83 1 ,I 13,832.90 2,097,205.18 1 ,I 17,700.00 0.24% 2,035,254.00 0.43% $469,966,822.96