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
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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
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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
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EXHIBIT 11
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