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Home My WebLink About2005-06-21; City Council; 18174; Report on City Investments as of 5/31/05I DEPT. TRS n W U a a 6 a .. F3 d 8 E B Q CITY MGR: AS OF MAY 31,2005 AB# 18,174 MTG. 6/21/05 Par Value Cost of Investments Amortized Cost (1 ) Market Value (2) TITLE: REPORT ON CITY INVESTMENTS Current Month Prior Month 509,576,230 497,878,999 51 0,987,356 499,598,309 509,684,513 498,037,86 1 508,881,521 496,334,833 CITY OF CARLSBAD - AGENDA BILL 1 I 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 May 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 5/31/05. 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 breakdown. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) [nternal Service Total Treasurer’s Investment Portfolio at Amortized Cost $509.6 Million I I PAGE TWO OF AGENDA BILL NO. 18,174 Cash Income Fiscal Year-to-Date * Pooled Investment Interest Income Current Prior Current Month Month FYTD Month FYTD Income 14,597,991 13,242,087 1,355,904 March 2005 *The cash income received is adjusted for any accrued interest purchased. Average Life (Years) Average Yield Modified Duration 2.10 3.65% 1.933 April 2005 2.07 3.72% 1.908 May 2005 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. 2.09 3.75% 1.937 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. Fourth 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 5 C 0 a .- 5 & 5 C 0 a 2 c, C 3 0 L a \ Z s z 0 0 0 0 0 n 0 0 8 0 8 0 0 0 0 0 iY I- EXHIBIT 1 3 EXHIBIT 2 s 8 s 9 s 8 s : W s 8 s 9 s 2 3 3 e, c EL 8 0 c! 0 W W d 3 x 0 d v, 2 00 v, v, (si w 0 W v, W 3 W W 4 N? IC) N QI Q\ W N m 00 r- s 0 0 0 0 0 00 (si 0 0 0 N W m, 0 R vi' .- d" (si n 3 U s 2 N 0 W W m d 9 2 f 0 0 0 0 \o 2 2 0 d Q\ 9 Q\ W N OI 00 t .. 3 3 d 3 00 N* v, fff 3 nn 3N uw 4 c-c 8 EXHIBIT 3 y L f 1 0 m t t I 5 EXHIBIT 4 \ t L EXHIBIT 5 00000 00000 0 0 0 9 s 0 v) o_ v) 0 0 Y 8 E s B a 0 N p! W U I c p! 3 F e7 m 0 0 2 s 0 s 2 I LL $2222 v) 0 0 Y 3 0 N v) 0 0 v 3 0 N 0030303bbbco -0000000 00000000 m0Q)mbmWo om7(v-(v77 mbm-mm-m 000-0070 mmmmmmmm 00000000 00000000 m(DQ)mbmmm OO~(v~(v(v(v mmmmmmmm 00000000 c!Q!Q!Qc!c!2c! .\\\.... c!c!c!Q!c!Qc!c! ...\.... 03 0 0 b m 0 m 0 0 b m 0 c! c! c! c! s E s E B a I 3 mmmmm 00000 00000 bm7030 oo(v(v(v 00000 c!2c!c!c! 23222 2 5 EXHIBIT '6 wu Y aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa uu~~~uuuuu~uuuuuuuuuuuuuu~uuuuuuuuuu~uuuuuu~~uu g f < 000w-00000N000000-0000kmN00000000000000000000 9 9 9 9 *? 9 m 9 9 9 rooooooNoo~oN*w~ooooom~oooooooooooooo 0 0 0 m v) 0 m 0 0 0 m- 0- 0- mi 0- 0- 0- 0-2- 0- 0- N' 0- m- m- 0 0- 0- 0- 0- 0- I- 0- 0- 0- 0- 0- I-- (v- 0- 0- 0- 0- I-- 0- 0- m (v m N cv v) N 0 (3 m (v m In T 0 d m - In v) q. v) N N F- d m- N- d d 9- ui d ui ui d 7- d m- m- m' v)- N- v)- m- $oooo~momooo*oo >~o~o~~m~o~~~~~~~~ooo~~~~o~~~ooooo~ooooo~~oooo~oo 000~00~0I--m00000m000oom~oooomoo < -I wooooooooooooooooooooooooooooooooooooooooooooo ~~0~0~0000000000000000000000000000000000000000000 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- 0- 0" 0- 0- 0- 0- 0- ~<OOOOOOOOOOOOOOOOO~OOOOOOOOOOOOOOOOOOOOOOOOooo >0~~~0~0~0000000000000N000000000000000000000000000 m 9 F Elz z cuu ww 33 nn $$ 00 zz ww no EE an 00 zzzzzzzzzzzzzzzzzzzzzzzzzzzz 0000000000000000000000000000 000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF MAY 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 Internal Service Agency Funds Redevelopment Funds (1) Misc. Special Funds Total General Ledger Balance ** Reconciling Adjustments (2) Total Total Treasurer's Investment Portfolio at Amortized Cost 87,050,476 35,039,678 3,123,602 49,768,974 9,970,569 40,130,689 4,313,095 8,641,140 9,384,627 70,349,672 18,465,496 682,727 21 1,706,988 53, I 98,293 62,894,757 6,278,792 341,548 822,595 123,535,986 19,893,389 24,449,700 0 0 504,799,818 4,884,695 509,684,513 (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 6/06/05. ** EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 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- 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 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 * Moodv's - S&P CREDIT SUISSE AA3 A+ DEAN WITTER DISCV AA3 A+ MORGAN STANLEY DEAN WITTER AA3 A+ PACIFIC BELL A2 A SBC COMMUNICATIONS A2 A SOUTHERN NEW ENGLAND TEL A2 A WACHOVIA CORP AA3 A Latest Maturitv Date Purchased 0411 8/07 AA~IAA- 11101/05 AA3lAA- 0411 5/06 AA3lAA- 0811 5/06 AA3lAA- 05/02/06 AA3lAA- oaii 5/05 AA~IAA- 0711 5105 AA3IAA- Carrying Value 4,111,666 2,995,795 15,616,776 7,172,989 1,996,060 1,113,993 2,000,916 Market Value 4,118,400 3,035,070 15,826,704 7,212,220 2,033,580 1,121,798 2,009,180 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. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF MAY 31,2005 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ALLSTATE FINANCIAL 8,020,253.19 1.57% ClTlGROUP ASSOCIATES CORP 1,591,525.00 0.70% 2,000,784.90 COOPERATIVE ASSOC - CATDA (CP) 4,925,900.00 0.96% CREDIT SUISSE 4,270,881.12 0.84% GENERAL ELECTRIC CAP SECURITY CAPITAL 17,489,469.62 4.08% 3,380,298.92 INTERNATIONAL LEASE - ILFC (CP) 4,923,913.89 0.96% MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV SBC COMMUNICATIONS PACIFIC BELL SOUTHERN NEW ENGLAND TEL SUN AMERICA INC WACHOVIA CORP WORLD SAVINGS BANK FSB 15,789,131.03 3.67% 2,950,553.97 1,978,738.00 2.09% 7,593,579.83 1 ,I 13,832.90 1,117,700.00 0.22% 2,035,254.00 0.40% 2,999,689.80 0.59% PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER FEDERAL FARM CREDIT BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN MORTGAGE CORP FHLMC DISCOUNT NOTE FEDERAL NATIONAL MORTGAGE ASSOC Total Portfolio Investment Cost Percent of Portfolio** 6,000,030.00 1.17% 11 5,390,631.75 22.58% 141,002,760.02 27.59% 3,349,965.77 0.66% 92,996,232.02 18.20% $510,987,355.85 * No more than 5% may be invested with a single corporate issuer. **There are no percentage limits on federal agency issuers.