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HomeMy WebLinkAbout2005-05-03; City Council; 18104; Report on City Investments as of March 31, 20055 Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) AB# 18,104 MTG. 5/3/05 Current Month Prior Month 484,069,125 485,670,449 486,007,812 488,302,105 484,367,850 486,227,599 481,38031 9 484,688,351 DEPT. TRS TITLE: REPORT ON CITY INVESTMENTS RECOMMENDED ACTION: 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 March 31,2005 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 3/31/05. 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 break’ 3wn. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) General $7 1.2 Total Treasurer’s Investment Portfolio at Amortized Cost $484.4 Million \ PAGE TWO OF AGENDA BILL NO. 18,104 Cash Income Fiscal Year-to-Date * Current Prior Current Month Month FYTD Month FYTD Income 11,416,782 9,843,245 1,573,537 *The cash income received is adjusted for any accrued interest purchased. January 2005 Pooled Investment Performance/Measurement Average Life (Years) Average Yield Mod if ied Duration I .928 2.08 3.58% February 2005 2.10 3.61 % 1.935 March 2005 I I 2.10 3.65% 1.933 ill 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. Par Value cost The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. Current Quarter Prior Quarter 45,236,577 16,259,512 45,236,577 16,259,512 In summary, the City’s investments of bond proceeds held separately as of the quarter ended March 2005 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. 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 EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY: IO. 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 3 EXHIBIT 1 5 C 0 a .- B k 5 5 r E .c1 C J 0 L W 3 s L 3 Y 5 I- 8 E n W 0 5 a a t 3 Z 0 0 0 0 0 n o 0 8 0 8 0 0 0 0 0 E EXHIBIT 2 h c? 0 0 0 0 \o \o 2 x d 0 3 2 2 d 0 0 0 00 I- 2 x I- 0 m R m I- r- I-* 0 0 I- 2 D!. z 0 00 d I- m 3 % I- I- d m 3 m 0 0 0 z I- =? z 0 0 0 00 d I- 3 z 0 I- r- 7 d m EXHIBIT 3 0 i ci H I c d d t 0 la H I I EXHIBIT 4 \ \ t L- 7 EXHIBIT 5 N 0 0 ss2 zz* s 0 lnlnrn 000 000 NNN 000 ::a v) 0 0 v s 0 N lnln 00 00 $$! ss $5 zz 00 0 00 Sr 43 tE EE v) 0 0 v s 0 N EXHIBIT 6 m 3 v) ww 33 nn e 0000000000000000000000000000000 0000000000000000000000000000000 0000000000000000000000000000000 0000000000000000000000000000000 0000000000000000000000000000000 0- 0- 0- d 0- 0- 0- d 0- d 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- d ooor-ooo-obooooooooooooooooooooN 9999999-~999999999*~99~~~~~~~~~~~~~~~~~~~~Q)~ NN~~NNN---~~~NN-~-NNNN~~N~~~~~~ c zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz 0000000000000000000000000000000 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF MARCH 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 71,225,647 35,330,639 2,755,969 49,636,713 9,328,210 39,333,750 4,375,595 9,247,961 9,348,836 68,447,232 18,450,063 802.027 208,970,388 53,063,94 1 62,947,179 6,009,172 344,579 891,211 123,256,083 19,802,955 22,573,675 0 0 483,915,355 452,495 484,367,850 (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 4/07/05. EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MARCH 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 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) INTERNATIONAL LEASE - ILFC COOPERATIVE ASSOC - CATDA P-I A-I + A- 1 Investments with Subsequent Changes in Credit Rating * ABN AMRO BANK CREDIT SUISSE DEAN WITTER DISCV MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Moodv's - S&P AI A+ AA3 A+ AA3 A+ AA3 A+ A2 A A2 A A2 A A2 A AA3 A Latest Maturitv Date Purchased 0513 1 I05 0411 8/07 11/01/05 0411 5/06 0811 5/06 05102106 0811 5/05 0511 2/05 0711 5/05 AA3lAA- AA3lAA- AA3IAA- AA3lAA- AA3lAA- AA3IAA- AA3lAA- AA2lAA- AA31AA- Carrying Value 4,080,805 4,121,607 2,994,114 15,623,750 7,198,102 3,995,345 1 ,I 13,987 2,002,876 2,002,164 Market Value 4,100,306 4,115,840 3,052,770 15,869,592 7,232,820 4,036,540 1 ,128,237 2,008,680 2,022,140 " 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. /3 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MARCH 31,2005 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ClTlGROUP ASSOCIATES CORP COOPER ASSOCIATION - CATDA (CP) CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL INTERNATIONAL Lease - ILFC (CP) MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV SBC COMMUNICATIONS PACIFIC BELL SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL Investment Cost 4,228,884.98 8,020,253.1 9 1,591,525.00 2,000,784.90 4,925,900.00 4,270,881.12 17,489,469.62 3,380,298.92 4,923,913.89 15,789,131.03 2,950,553.97 4,058,275.56 7,593,579.83 1,113,832.90 2,097,205.18 Percent of Portfolio* 0.87% 1.65% 0.74% 1.01 % 0.88% 4.29% 1.01 % 3.86% 3.06% SUN AMERICA INC 1 ,I 17,700.00 0.23% WACHOVIA CORP 2,035,254.00 0.42% PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER FEDERAL FARM CREDIT BANK Investment Cost Percent of Portfolio** 6,000,030.00 1.23% 96,495,505.50 19.85% FEDERAL HOME LOAN BANK FEDERAL HOME LOAN MORTGAGE CORP 132,084,010.02 27.18% FHLMC DISCOUNT NOTE 3,349,965.77 0.69% FEDERAL NATIONAL MORTGAGE ASSOC 80,996,732.02 16.67% Total Portfolio $486,007,812.47 * No more than 5% may be invested with a single corporate issuer. **There are no percentage limits on federal agency issuers. EXHIBIT 10 C c 3 EXHIBIT 11 0, r N - c 0 N m N N r r r N r r a, m 'C U 5 Q 0- m N 8 $ N. N ln c a, m Ci c m 0 I E - N P v) N r r N r U t m r 0 - t L P Y, a 0 l- e 4 m 0 8