HomeMy WebLinkAbout2005-08-02; City Council; 18225; Report on City Investments as of 06/30/058 6 Qt e a a
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Par Value
Cost of Investments
Amortized Cost (1 )
Market Value (2)
REPORT ON CITY INVESTMENTS
Current Month Prior Month
51 0,844,595 509,576,230
512,009,997 51 0,987,356
51 0,824,262 509,684,513
509,797,083 508,881,521
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 June 30, 2005 is summarized below.
II Pooled Investment Portfolio (Cash and Securities) II
(I) 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 6/30/05.
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
detailed brea down.
FUND EQUITY IN POOLED INVESTMENTS
(Dollar Amounts in Millions)
Special Revenue
Internal Service
Agency Capital Projects
$ 217.0
Enterprise $1 2 3.5 ,
Total Treasurer’s Investment Portfolio at Amortized Cost
$510.8 Million
7 for a more
PAGE TWO OF AGENDA BILL NO. 18,225
Current Prior
Month FYTD Month FYTD
Cash Income Fiscal
Year-to-Date * 15,679,136 14,597,991
Current Month
Income
1,081,145
*The cash income received is adjusted for any accrued interest purchased.
April 2005
Average Life
(Years) Average Yield Modified Duration
2.07 3.72% 1.908
May 2005 2.09 3.76% 1.937
L I I I
June 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.
2.04 3.73% 1.890
The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six
(6) months.
Current Quarter
In summary, the City’s investments of bond proceeds held separately as of the quarter ended June
2005 is as follows:
Prior Quarter
Par Value
cost
33,496,800 45,236,577
33,496,800 45,236,577
Par Value
cost
All investments of bond proceeds have been made in accordance with the City’s Investment Policy
and the trust indenture for each issue.
33,496,800 45,236,577
33,496,800 45,236,577
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
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
EXHIBIT 1
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF JUNE 30,2005
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
85,755,115
35,118,135
3,169,871
49,913,591
10,189,688
40,282,406
3,833,464
9,359,687
9,468,234
75,044,322
18,476,807
463,679
217,031,878
53,091,032
62,980,140
6,267,275
330,282
785,311
123,454,039
20,521,295
24,986,30 1
0
0
51 0,036,633
787,629
510,824,262
(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 7/11/05. **
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF JUNE 30,2005
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-
CITIGROUP AA1 AA-
GENERAL ELECTRIC AAA AAA
SECURITY CAPITAL - GE AAA AAA
SUN AMERICA INC AAA AAA
WORLD SAVINGS BANK AA3 AA-
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 AA3lAA-
1 1 IO 1 I05 AA3lAA-
0411 5/06 AA3lAA-
0811 5/06 AA3lAA-
05/02/06 AA3lAA-
0811 5/05 AA3lAA-
0711 5/05 AA3lAA-
Carrying
Value
4,106,696
2,996,636
11,614,341
7,160,432
1,996,417
1 ,I 13,833
2,000,291
Market - Value
4,113,880
3,026,250
11,791,284
7,191,980
2,028,480
1 ,I 17,877
2,001,880
* 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.
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EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF JUNE 30,2005
WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
ALLSTATE FINANCIAL
ClTlGROUP
ASSOCIATES CORP
COOPERATIVE ASSOC - CATDA (CP)
CREDIT SUISSE
GENERAL ELECTRIC CAP
SECURITY CAPITAL
8,020,253.19 1.57%
1,591,525.00 0.70%
2,000,784.90
4,925,900.00 0.96%
4,270,881.12 0.83%
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
11,680,494.15 2.86%
2,950,553.97
1,978,738.00 2.09%
7,593,579.83
1 ,I 13,832.90
SUN AMERICA INC 1 ,I 17,700.00 0.22%
WACHOVIA CORP 2,035,254.00 0.40%
WORLD SAVINGS BANK FSB 2,999,689.80 0.59%
PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER
FEDERAL FARM CREDIT BANK
Investment Cost Percent of Portfolio**
6,000,030.00 1.17%
FEDERAL HOME LOAN BANK 124,256,569.25 24.27%
FEDERAL HOME LOAN MORTGAGE CORP 131,009,385.02 25.59%
FHLMC DISCOUNT NOTE 3,349,965.77 0.65%
FEDERAL NATIONAL MORTGAGE ASSOC 94,686,582.02 18.49%
Total Portfolio $512,009,996.73
* 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