HomeMy WebLinkAbout2005-04-05; City Council; 18045; Report on City Investments February 28, 20050 \ In
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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
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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
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