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Home My WebLink About2005-03-01; City Council; 17988; Report on City Investments as of 01/31/051 17,988 MTG. 3/1/05 DEPT. TRS - TITLE: REPORT ON CITY INVESTMENTS AS OF JANUARY 31,2005 RECOMMENDED ACTION: Accept and file report. I Current Month Prior Month Par Value 482,793,332 473,626,677 ITEM EXPLANATION: Amortized Cost (1) Market Value (2) 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 January 31,2005 is summarized below. Pooled Investment Portfolio (Cash and Securities) 483,484,777 474,379,386 483,659,986 475,438,115 vvestments 485,414,500 I I 476,262,096 (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 1/31/05. 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 breakc Iwn. %uND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Special Revenue General Capital Projects $ 207.6 Internal Servic Enterprise $1 2 4.2 ‘i. .. Total Treasurer’s Investment Portfolio at Amortized Cost $483.5 Million PAGE TWO OF AGENDA BILL NO. 17,988 Year-to-Date * November 2004 *The cash income received is adjusted for any accrued interest purchased. Average Life (Years) Average Yield Modified Duration 2.07 3.46% 1.921 II Pooled Investment Performance/Measurement ll December 2004 January 2005 2.01 3.46% 1.867 1.928 2.08 3.58% 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. 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 3 z 3 z 0 0 0 0 0 13 0 0 8 0 8 0 0 0 0 0 i% 0 8 0 8 0 0 0 0 0 a 0 0 8 0 8 0 0 0 0 0 E a3 0 Ln b c? Y 0 m 0 t ‘T; z Y 0 d m W W (4 a, 0 9 z T- T- 0 d (T, W (D (9 L 0 Y z a a m 3 EXHIBIT 2 h v hl s 8 s 8 s 8 s 9 s 9 s 0 H s 8 0 s 0 i 0 od vr 3 3 d e, * s e, c $ f3 8 0 0 0 0 0 $1 0 m r 3 m m 3 3 m 0 0 2- 0 d W W 3 m- m PI PI i 2 oo W- oo 3 3 i ti €e 0 a 0 0 W oo K .;t 0 0 oo vr W, 0 0 -=i "! h 3 + z hl m e3 ci, oo d 8 UI 6 s '? m m 0 0 0 0 m W hl m m! "! + m m 3 3 m c.3 W 0 m 0 d W W s 3 hl Q\ 3 hl hl 2 m + + t; 2 e 4 EXHIBIT 3 0 L a I I LL I 3 d 4 i t I 0 U EXHIBIT 4 * * + t + + + b * t t L EXHIBIT 5 In 0 0 9 B 0 N mmmm 0000 0000 r-b(vr- 0000 2222 22x2 7777 L d OON 000 000 929 W ZGZ? z ZF2 0 f 7 EXHIBIT 6 u.. 0000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000 0000000000000000000000000000000000000000000 0- ui 0- 0- m- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 4 $31 o m o o m o o o o o o o o o o o o o o r- o o o o o o o o o o o o o o o o o o o o o o o 0~~~0~0~~~0~0~0~0~0~0~0~0~0~0~0~0~0~0~b~0000000000000000~000000 cv (v UY m 7 UY v) m CY m m ro (v m m m m cu UY - m- d m- m- mi m- me m- d m- v- m- m- m- m- IC- ri m- m- m- d ui m- gz bg "$ 8888888888888888888888888888888888888888888 s5 8 000000m000000N0000000000000000000 ooooool-00000000000000000000000000 ~eg~gggg~ggggg~~~gggggggggggggggggg ~z0~ooooNomomoNwwooooomoooooooooooo 3 0 m- 0- 0- d 0- oi d 6 0- N- 0- vi m- 0- 0- 0- 0- 0- 0- r-- 0- 0- 0- 0- 0- l-- N- 0- 0- 0- 0- r-- ~~oaoooo~omo~~l-~wooooomooooommoooom >a 999999N-9~~999 999999999999999999999 Z<mNmm00-mNmd~NNrmmNmmdmmm~m-d0m~~N zzzzzzzz 00000000 I- z z 0 L 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF JANUARY 31,2005 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 74,144,lO 1 34,993,429 3,030,859 49,544,608 9,076,066 37,930,384 4,185,639 9,334,130 9,094,448 68,729,857 18,461,411 1,256,225 207,612,769 53,256,719 63,256,243 5,973,741 41 5,651 1,296,775 124,199,130 20,065,275 18,774,362 0 0 482,819,925 664,852 483,484,777 (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 1/10/05. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,2005 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 AIIPI or better by both Moody's and S8P) (Ratings of other debt must be AA or better by Moody's or S8P) NONE Investments with Subsequent Changes in Credit Rating * Latest Carrying Market Moodv's - S&P Maturitv Date Purchased Value Value ABN AMRO BANK AI A+ 05/31/05 AA3IAA- 4,086,708 4,131,765 CREDIT SUISSE AA3 A+ 04/18/07 AA3IAA- 4,131,547 4,171,120 DEAN WITTER DlSCV AA3 A+ 11/01/05 AA3lAA- 2,992,432 3,078,570 MORGAN STANLEY DEAN WITTER AA3 A+ 04/15/06 AA3lAA- 15,630,725 16,034,500 PACIFIC BELL A2 A 08/15/06 AA3lAA- 7,223,215 7,312,170 PITNEY BOWES INC AA3 A+ 02/01/05 AA3lAA 2,000,000 2,000,000 SBC COMMUNICATIONS A2 A 05/02/06 AA3IAA- 3,997,724 4,068,540 SOUTHERN NEW ENGLAND TEL A2 A 08/15/05 AA3lAA- 1,113,981 1,136,636 SOUTHWESTERN BELL A2 A 05/12/05 AA2IAA- 2,007,084 2,024,060 WACHOVIA CORP AA3 A 07/15/05 AA3lAA- 2,003,413 2,038,880 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 isthe 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 JANUARY 31,2005 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* 0.87% I .65% 2.07% ABN AMRO BANK 4,228,884.98 ALLSTATE FINANCIAL 8,020,253.1 9 ClTlGROUP ASSOCIATES CORP COMM CREDIT 1,591,525.00 2,000,784.90 6,450, I 19.94 4,270,881.12 0.88% 4.30% CREDIT SUISSE 17,489,469.62 3,380,298.92 GENERAL ELECTRIC CAP SECURITY CAPITAL MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 15,789,131.03 2,950,553.97 3.86% PITNEY BOWES INC 1,919,298.74 0.40% 3.06% 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 SUN AMERICA INC 1,117,700.00 0.23% 0.42% WACHOVIA CORP 2,035,254.00 Total Portfolio $485,414,500.42 * No more than 5% may be invested with a single issuer. /3