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Home My WebLink About2004-12-07; City Council; 17899; City investments 31 Oct 04 reportP W U is !i .. Z 0 I- U -I U Z 3 0 U - a - CITY OF CARLSBAD -AGENDA BILL A AB# 17,899 TITLE: IMTG. 12/7/04 REPORT ON CITY INVESTMENTS DEPT. TRS AS OF OCTOBER 31,2004 Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) RECOMMENDED ACTION: Current Month Prior Month 463,834,013 466,301,005 466,489,151 468,964,362 464,714,713 467,244,812 467,737,337 470,122,298 Accept and file report. 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 October 31, 2004 is summarized below. (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 10/31/04. 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) [nternal Service $19. Enterprise $126.7 Total Treasurer’s Investment Portfolio at Amortized Cost $464.7 Million I PAGE TWO OF AGENDA BILL NO. 17,899 Current Month FYTD Prior Current Month Month FYTD Income Cash Income Fiscal Year-to-Date * *The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performance/Measurement 5,383,804 3,684,690 1,699,114 August 2004 September 2004 October 2004 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. Average Life (Years) Average Yield Modified Duration 2.15 3.39% 1.975 2.10 3.38% 1.937 2.09 3.43% 1.935 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. Second 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 5 c s .- 3 t 5 c ; C c 2 f 0 5 c 0 I .- b t 5 c s U c p! f 0 dl (ID s z 6 z \ 0 0 0 0 0 n o 0 8 0 8 0 0 0 0 0 I% 0 8 0 8 0 0 0 0 0 n o 0 8 0 0 9 0 0 0 0 0 E 3 EXHIBIT 2 s 8 s 8 s 8 s 9 0 s z IC) s v! 00, 3 s 0 3 s T 0 a t? E3 s 0 c! 0 0 0 0 co 0 .- s G 3 \o 0 0 0 0 P N \o N IC) x x d m 0 0 0 0 0- t 0 m m N d 0- 2 m FA s 9 0 0 0 0 00, 0 0 9 0- 00, 3 m 3 x m mL. t-4 m 3 nn 22. 6 u 4 n u EXHIBIT 3 0 m U p! tt EXHIBIT 4 8 * $ t - * s s 8 i - b 8 * - 8 8 b- EXHIBIT 5 99 PP a 7 0000000000000000000000000000 0000000000000000000000000000 0000000000000000000000000000 woooooooooooooooooooooooooooo ~=oooooooooooooooooooooooooooo 4 A 0- 0- 0- om 0- 0- 0- 0- 0- om 0- 0- 0- 0- 0- 0- 0- 0- 0- om 0- 0- 0- 0- 0- 0- 0- 0- ~~oooooooo~ooooooooo~~~ooooooo >00000000N0000000000000000000 m- d m- m- m- m- m- ui 7- d m- m- m- m- m- m- N- m- m- N- ui 0- m- m- m- m- uj 0- zzzzzzzzzzzzz 0000000000000 N-r I- z 3 8 2 c 0000000 /a EXHIBIT 7 Fund Equity in Pooled Investments AS OF OCTOBER 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 59,587,730 32,933,468 2,047,24 1 49,805,389 8,807,977 37,585,788 4,888,404 9,986,303 9,239,418 67,998,400 18,347,478 935,828 207,674,984 53,070,592 64,647,242 5,708,590 328,293 2,975,729 126,730,445 19,501 ,I 76 17,525,445 0 0 466,000,489 (1,285,775) 464,714,713 (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 11/08/04. ** EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF OCTOBER 31,2004 CORPORATE NOTE AND COMMERClAL PAPER RATlNGS 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 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 DlSCV MORGAN STANLEY DEAN WITTER PACIFIC BELL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's Al 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 05/31/05 0411 8/07 1 1 101 105 0411 5/06 0811 5106 0210 1 I05 05/02/06 0811 5/05 05/12/05 0711 5/05 AA3lAA- AA3lAA- AA31AA- AA3lAA- AA3IAA- AA3lAA AA3lAA- AA3lAA- AA2lAA- AA3lAA- Carrying Value 4,098,515 4,151,428 2,989,068 15,644,673 7,273,441 1,993,700 4,002,481 1,113,969 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 OCTOBER 31,2004 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 ClTl GROUP ASSOCIATES CORP COMM CREDIT 1,591,525.00 2,000,784.90 6,450,119.94 CREDIT SUISSE 4,270,881 .I2 0.91 % 4.45% GENERAL ELECTRIC CAP SECURITY CAPITAL 17,489,469.62 3,380,298.92 MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 1 5,789, I 3 1.03 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 2,097,205.18 0.24% 0.43% SUN AMERICA INC 1 ,I 17,700.00 WACHOVIA CORP 2,035,254.00 Total Portfolio $468,964,361.71 * No more than 5% may be invested with a single issuer.