HomeMy WebLinkAbout2004-11-02; City Council; 17863; Report on City Investments as of Sept. 30, 20040 w
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I Current Month Prior Month
REPORT ON CITY INVESTMENTS
Par Value
Cost of Investments
Amortized Cost (1 )
Market Value (2)
RECOMMENDED ACTION:
Accept and file report.
466,301,005 468,016,003
468,964,362 470,696,044
467,244,812 469,016,400
470,122,298 472,717,022
ITEM EXPLANATION:
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 September 30, 2004 is summarized below.
II 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 of 9/30/04.
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 bre; ;down.
FUND EQUITY IN POOLED INVESTMENTS
(Dollar Amounts in Millions)
Internal Service $1 6.
Enterprise $1 2 7 .O \*
Total Treasurer’s Investment Portfolio at Amortized Cost
$467.2 Millioq
1
PAGE TWO OF AGENDA BILL NO. 17,863
Cash Income Fiscal
Year-to-Date *
- Pooled Investment Interest Income
3,684,690 2,236,789 1,447,901
Current I MonthFYTD
Wears)
2.21
2.15
I Current Income Month I Prior I MonthFYTD
Average Yield Modified Duration
3.45% 2.029
3.39% 1.975
2.10
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment PerformancelMeasurement
3.38% 1.937
July 2004
Par Value
cost
August 2004
Current Quarter Prior Quarter
16,445,402 17,337,312
16,445,402 17,337,312
September 2004
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.
The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six
(6) months.
In summary, the City’s investments of bond proceeds held separately as of the quarter ended
September 2004 is as follows:
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. 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
EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY:
10. Detailed Investment Report - Quarterly Report
EXHIBIT FOR SUMMARY OF OUTSTANDING HOUSING LOANS:
11. Detail Of Outstanding Housing Loans - Quarterly Report
Department Contact: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us
EXHIBIT 1
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF SEPTEMBER 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
Agency Funds
Redevelopment Funds (1 )
Misc. Special Funds
Total General Ledger Balance **
Reconciling Adjustments (2)
Total Treasurer's Investment Portfolio at Amortized Cost
63,500,096
33,403,856
3,031,807
49,702,192
8,743,383
37,869,324
4,839,682
9,142,552
8,952,783
68,200,094
18,264,206
229,708
205,943,925
53,709,467
64,611,735
5,633,725
93,373
2,988,569
127,036,869
16,572,046
14,853,059
0
0
464,341,658
2,9033 54
467,244,812
(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 10/06/04. **
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF SEPTEMBER 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 AA2 AA
ASSOCIATES CORP AA1 AA-
ClTlGROUP AA1 AA-
COMMERCIAL CREDIT CO AA1 AA-
GENERAL ELECTRIC AAA AAA
SECURITY CAPITAL - GE AAA AAA
SUN AMERICA INC AAA AAA
Commercial Paper Investments Meeting the Current Investment Policy:
(Ratings must be AllPI 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
MORGAN STANLEY DEAN WITTER
PACIFIC BELL
PITNEY BOWES INC
SBC COMMUNICATIONS
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
WACHOVIA CORP
Moodv's
AI
AA3
AA3
AA3
AI
AA3
AI
AI
AI
AA3
- S&P
A+
A+
A+
A+
A+
A+
A+
A+
A+
A
Latest
Maturitv Date Purchased
05/31 I05
0411 8/07
11101/05
0411 5/06
0811 5/06
02/01/05
05/02/06
0811 5/05
0511 2105
0711 5105
AA3lAA-
AA3lAA-
AA3lAA-
AA3lAA-
AA3IAA-
AA3IAA
AA3lAA-
AA3lAA-
AA21AA-
AA3lAA-
Carrying
Value
4,098,515
4,151,428
2,989,068
15,644,673
7,273,441
1,993,700
4,002,481
1 ,I 13,969
2,015,500
2,005,910
Market - Value
4,199,369
4,241,680
3,127,890
16,298,000
7,447,590
2,020,420
4,136,380
1,155,730
2,058,220
2,075,000
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 SEPTEMBER 30,2004
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
0.90%
1.71% .
2.14%
ABN AMRO BANK 4,228,884.98
ALLSTATE FINANCIAL 8,020,253.19
ClTlGROUP
ASSOCIATES CORP
COMM CREDIT
1,591,525.00
2,000,784.90
6,450,119.94
CREDIT SUISSE 4,270,881.12 0.91 %
4.45% GENERAL ELECTRIC CAP
SECURITY CAPITAL
17,489,469.62
3,380,298.92
MORGAN STANLEY DEAN WITTER
DEAN WITTER DISCV
15,789,131.03
2,950,553.97
4.00%
PITNEY BOWES INC 1,919,298.74 0.41 %
3.17% SBC COMMUNICATIONS
PACIFIC BELL
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
4,058,275.56
7,593,579.83
1 ,I 13,832.90
2,097,205.1 8
0.24%
0.43%
SUN AMERICA INC 1 ,I 17,700.00
WACHOVIA CORP 2,035,254.00
Total Portfolio $468,938,111.71
* No more than 5% may be invested with a single issuer.
EXHIBIT 10
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EXHIBIT 11
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