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HomeMy WebLinkAbout2005-08-02; City Council; 18225; Report on City Investments as of 06/30/058 6 Qt e a a .. z R G d 8 4 E 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 5 z C 0 .- b h 5 C s CI C 3 E L 0 5 5 C 0 .- 8 & 5 5 2 c 0 CI C L 3 0 5 E C 0 .- b h 5 C s CI C 3 E L 0 31 iT a 1 z a \ Z 0 0 0 0 0 n 0 0 8 0 8 0 0 0 0 0 IY I- 4 EXHIBIT 2 OW W d x 00 OW W 2 d m m- ez: s 8 0 0 0 E bo ww * a! 3 z 00 03 W 0 m z 0 00 W W 0 m O! nn 3PJ ww w .. EXHIBIT 3 0 m 0 u H EXHIBIT 4 \ t t \ t \ 7 EXHIBIT 5 r- (9 E ni a a s aaa aa z ttl 22 0 IIZII LLLLLLLLU 99295 aaaaa LLLLLLLLLL 000 ZIII a222 9 2-1-1-1 E LLLLLLLL a aaaa LL LLLLLLL z zzz zz 0 000 00 mmmo 5aaz CQQQ 0003- 0000 NNNCV (O--r 0000 B 0 ro- 00 ; 0 000 88 w m ma- :? 2 5 z:a :: 2 0 000 2 QQQ NN 000 ON r 0-0 F- U E E EXHIBIT 6 aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa El uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu~uu ii 2 z 0 3 v) ww I33 on $s 00 zz ww on EE a P t- 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. /3 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 /5 EXHIBIT 11