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HomeMy WebLinkAbout2005-04-05; City Council; 18045; Report on City Investments February 28, 20050 \ In z=r W > 0 ffi CL CL 4 .. z 0 H B u 4 i4 s V 0 u 18,045 MTG. 4/5/05 DEPT. TRS 3 TITLE: REPORT ON CITY INVESTMENTS AS OF FEBRUARY 28.2005 CITY MGR: Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) RECOMMENDED ACTION: Accept and file report. Current Month Prior Month 485,670,449 482,793,332 488,302,105 48541 4,500 486,227,599 483,484,777 484,688,351 483,659,986 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 February 28, 2005 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 2/28/05. 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 breal own. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) General Special - __ Revenue Other , f'm Total Treasurer's Investment Portfolio at Amortized Cost $486.2 Million I PAGE TWO OF AGENDA BILL NO. 18,045 Current Month FYTD Cash Income Fiscal Year-to-Date * 9,843,245 Prior Current Month Month FYTD Income 9,019,563 823,419 *The cash income received is adjusted for any accrued interest purchased. December2004 II Pooled Investment Performance/Measurement II Average Life (Years) Average Yield Modified Duration 2.01 3.46% 1.867 January 2005 February 2005 1.928 2.08 3.58% 2.10 3.61 % 1.935 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 W 3 > I- W Y U a a a I- 8 0 W N I- U 0 I 4 a . Z 0 8 0 8 Ln 2 0 x b N 9 0 Ln r 0 Ln .c 0 0 0 N N 03 t r IC IC 03 (v 0" rr, 3 03- 0 03 b IC 8 t m 03 d te 3 EXHIBIT 2 $ 8 0 3 i 0 * s ij * ru 0 * e s 0 0 3 R k 0 W W a a, 2 0 0 0 d 2 2- 3 0 m 0 E I- 0 ", I-" d- 00 3 00 .B ,. mi B 000000 vr m 0 i.i 2 x 00 d 3 a- =, I- 3 rJ R Q n n W OQOON \o 00 a r- a- m od' m EXHIBIT 3 0 H L J W a A t - L a J EXHIBIT 4 b * 9 4 1 L 6 EXHIBIT 5 FFF 0000 aaaa LLLLLLLL bb0lnlnWWW 00T00000 00000000 cucucummcoo03 cococucococucucu 00000000 ?!?!?!?!?!?!?!?! eee!?!e!?!Y?! 0 a rf tE 22 p? W 2 2 U n p! I c s e 7 EXHIBIT 6 8 2 2 2 2 m 3 0 JJ 22 yy 44 ww 33 nn ss no 00 zz ww IYK LLLL cb 3 0 00000000000000000000000000000 00000000000000000000000000000 99999999999999999999999999999 mNNN--rOmONN-d-NNNNmmN~mdmmm d- -- -- mmm I- z 3 0 0 0 a z 0 5 B K 0 0 c 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF FEBRUARY 28,2005 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 73,478,865 35,099,693 3,083,971 49,695,205 9,201,608 38,819,147 4,307,169 9,351,351 9,413,841 68,238,337 1831 0,060 91 7,122 208,453,841 53,362,677 62,553,180 6,024,38 1 393,457 1,022,830 123,356,524 20,466,618 23,325,690 0 0 487,265,201 (1,037,602) 486,227,599 (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 3/09/05. ** EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 28,2005 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 SBP) Moodv's - S&P ALLSTATE FINANCIAL AA2 AA ASSOCIATES CORP AAI 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 SBP) (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 SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's AI AA3 AA3 AA3 A2 A2 A2 A2 AA3 - S&P A+ A+ A+ A+ A A A A A Latest Maturitv Date Purchased 05/31/05 AA3lAA- 0411 8107 AA3IAA- 1 1 IO 1 I05 AA3lAA- 0411 5/06 AA3lAA- 0811 5/06 AA3lAA- 05102106 AA3lAA- 08/15/05 AA3JAA- 0511 2/05 AA2JAA- 0711 5/05 AA3lAA- Carrying Value 4,083,757 4,126,577 2,993,273 15,627,237 7,210,659 3,996,534 1 ,I 13,984 2,004,980 2,002,789 Market Value 4,116,198 4,138,880 3,066,360 15,956,548 7,266,940 4,051,720 1,132,314 2,016,600 2,030,760 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 podfolio until maturity unless events indicate they should be sold. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 28,2005 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ABN AMRO BANK ALLSTATE FINANCIAL C l TlG ROU P ASSOCIATES CORP COMM CREDIT CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV 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 0.87% 8,020,253.19 1.64% 1,591,525.00 2.06% 2,000,784.90 6,450,119.94 4,270,881.12 0.87% 17,489,469.62 4.27% 3,380,298.92 15,789,131.03 3.84% 2,950,553.97 4,058,275.56 3.04% 7,593,579.83 1 ,I 13,832.90 2,097,205.18 1 ,I 17,700.00 0.23% 2,035,254.00 0.42% $488,302,104.86 /3