HomeMy WebLinkAbout2005-09-20; City Council; 18286; Annual Report of Investment Portfolio June 2005CITY OF CARLSBAD -AGENDA
Cash Balance by Fund:
Genera I
Special Revenue
Debt Service
Capital Projects
Enterprise
Internal Service
Agency Funds
Reconciling Adjustments
Total Treasurer’s Investment Portfolio at Amortized Cost
w 18,286
HTG. 9/20/05
IEPT. TRS
85,755,115
35,118,135
3,169,87 1
217,031,878
123,454,039
20,521,295
24,986,301
787,628
51 0,824262
TITLE: -
ANNUAL REPORT OF INVESTMENT
PORTFOLIO
FOR YEAR ENDED JUNE 30,2005
RECOMMENDED ACTION:
Accept and file report.
ITEM EXPLANATION:
City Policy requires the City Treasurer to render an annual report of the City’s investment
portfolio. This report is for the fiscal year ended June 30, 2005 (FY 04-05).
Assets in the investment portfolio totaled $512 million at the end of the fiscal year. The
equity portion of the various funds at the amortized value of the total portfolio is
summarized below:
Fund equity balances are restricted for various purposes as listed above. This
represents an increase of $40 million from the previous fiscal year. Cash and
investments comprise an estimated 47% of the total assets reported by the City and its
agencies. It is estimated that the investment portfolio will increase to $540 million by the
end of FYO5-06.
For the last month of the fiscal year, the portfolio had a return of 3.73%. For the entire
fiscal year, however, the portfolio averaged 3.55%. Cash interest income totaled $1 5.7
million in FYO4-05 of which approximately $2.3 million went to the General fund. For the
next fiscal year (FYO5-06), it is expected that the average return for the portfolio will
approxi mate 3.65%.
EXHIBITS :
1. City Treasurer’s Annual Report of Investment Portfolio for the fiscal year ended
June 30,2005.
\
Fiscal Year Ended 6/30/05
(FY 04-05)
City Treasurer’s
Annual Report of Investments
For Fiscal Year Ended June 30,2005
TABLE OF CONTENTS
Letter of Transmittal
Market Review FY04-05
Portfolio Analysis
Preview FYO5-06
Appendices:
A: Risk Management and Disclosure
B: Portfolio Activities for Year Ended June 30,2005
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2
3
8
10
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1635 Faraday Avenue, Carlsbad, CA 92008
Website: www.ci.carisbad.ca.us
Prepared by the Treasury Department
3
- City of Carlsbad
September 2005
Honorable Mayor, City Council,
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008-7314
And Citizens of the City of Carlsbad
City Treasurer Letter of Transmittal
2004-2005 Annual Report of Investments
I am pleased to present the Annual Report of Investments for the City of
Carlsbad for the fiscal year ended June 30,2005 (FY 04-05). The report is
intended to provide reliable information as a basis for reviewing portfolio
performance and making management decisions. It also provides an archival
reference.
The City Treasurer is charged with the design of an effective cash management
and investment progra for the City of Carlsbad and all of its agencies. Among
receipts and expenditures; investing all inactive cash; managing investment risk
exposures; and reporting all investment activities.
other activities, this incl 7 des arranging for banking services; forecasting all cash
This report summarizes and analyzes the activities of the investment portfolio for
FY 04-05. Total portfolio assets, asset allocations, yields achieved, cash
incomes, risk exposures and cash flows are presented. To give perspectives to
these measurements, movements in market interest rates are provided for the
fiscal year ended June 30, 2005. Comparisons are also made with the
preceding fiscal years. Finally, a statement is offered regarding the prospects for
the fiscal year 2005-2006 (FY 05-06) commencing July 1,2005.
es M. Stanton
4 1635 Faraday Avenue Carlsbad, CA 92008-7314 (760) 602-2473 - FAX (760) 602-8556
www.ci.carlsbad.ca.us
Cl N TREASURER
1.00 0.50 0.00
ANNUAL REPORT OF INVESTMENT PORTFOLIO
FOR THE FISCAL YEAR ENDED JUNE 30,2005
I 1 I , I
FY04-05 MARKET REVEW
lerm market rates were
relatively unaffected by
the actions of the
I Federal Funds Target Rate
IN FY 04-05
JUL AUC SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
3.69 3.31 3.37 3.82 3.69 3.61 3.70 4.01 4.17 3.90 3.74 3.70
2.68 2.39 2.61 2.55 3.00 3.07 3.27 3.60 3.78 3.65 3.57 3.63
1.75 1.79 1.99 2.12 2.43 2.58 2.72 2.97 3.12 3.17 3.11 3.33
4.00%
3.50%
3.00%
2.50X
2.00%
1.50%
1 .OO%
0.50%
0.00%
3.25% 3.OO0Q-' 2.75% 2.5Cp r-' 2.25% I I
1.,75% "FL'
1.50% 5.-
June 30,2004 to 3.25% June 30,2005.
Changes in short-term
market interest rates are
usually affected by the
actions of the Federal
Reserve. Six-month and
two year market rates
increased over the
course of the fiscal year.
Five year market rates,
however, ended the
fiscal year with the same
rate it started. Longer-
Federal funds rate is a key
money market rate that
correlates with rates of other
short-term credit
arrangements. It is the
interest rate that banks charge
each other for overnight loans.
In fiscal year 04-05 the
Federal Reserve increased
the federal funds rate eight
times, each by 25 basis points
for a total of 200 basis points.
As a result, the federal funds
rate increased from 1.25%
SHORT-TERM INTEREST RATES
U .S. Treasury Instrum en ts
Fiscal Year 2004 - 2005 -1
5.00 I A.sn !
I Federal Reserve. Chairman Greenspan described this as a conundrum.
2
YIELD CURVE
7/0 1 /04,12/3 1 /04,6/3 0/0 5
I Market Rates I
s.;
AI .,.a 4 3.5 3 2.5 2 1 .s
0.: j, 0
3 Mth 2 Yr S Yr IO Yr 3Mlh 2Yr SYr 10Yr
1.434 2.677 3.694 4.475
2.212 3.065 3.607 4.218
3.116 3.633 3.698 3.913
The yield curve is a graphic
presentation of the
difference between short-
term and longer-term
interest rates of U.S.
Treasury instruments on a
given day. Financial
analysts use it to assess the
market’s expectation of
recession or inflation. The
normal shape of the yield
curve has a moderately
upward slope, with short-
term rates lower than
longer-term rates. If the
upward slope steepens, the
financial markets believe inflation may occur. An inverted yield curve is when short-
term market rates are greater than longer-term market rates. An inverted curve
indicates that the financial markets expect a slower economy, if not a recession.
At the beginning of FY 04-05 (July 1, 2004), the yield curve had a moderate upward
slope, indicating a slight bias on the side of inflation. At the middle of FY 04-05
(December 31, 2004) the upward slope of the yield curve became much less. As FY
04-05 ended, the yield curve was almost flat. On June 30, 2005, the flat yield curve
was indicating that the economy was close to equilibrium, with no discernible bias
toward either inflation or recession.
PORTFOLIO ANALYSIS
I INVESTMENT PORTFOLIO
Dollar Amount of Assets (Fiscal Year End)
IMillionsI . $550.0
$500.0
$450.0
$400.0
$350.0
$300.0
$250.0
$200.0
$150.0
$100.0
$50.0
$0.0
FY96-97 FY97-98 FY98-99 FY99-00 FYOO-01 FYO1-02 FY02-03 FY03-04 FY04-05
Total assets in the
investment portfolio
stood at $51 1 million at
the end of the fiscal
year, an increase of 8%.
The $51 1 million is again
a record amount for the
portfolio. Commencing
with FY 96-97, year-
ove r-year percentage
increases have been
32%, 2670, 19%, 8%,
and 8%.
13%, 6%, 11%, IO%,
3
6
CASH/INVESTMENTS RELATIVE TO
TOTAL ASSETS OF CITY AND ITS AGENCIES*
$1,100 100 %
$1,000 90%
$900 80 %
70% $800
60% $700
50% $600
$500 40 % $400 30 % $300 $200 20 %
$100 10%
$0 0%
97 98 99 no ni nz 03 04 05
FY96- FY97- FY98- FY99- FYOO- FYOI- FY02- FY03- FYO4-
I
The City publishes a
Comprehensive Annual
Financial Report (CAFR) at
the end of each fiscal year.
Among other information,
CAFR presents a balance
sheet showing the total
assets owned by the City
and all its agencies. At
the end of FY 04-05, cash
and investments managed
by the City Treasurer
represent 47% of all assets
reported by the City and its
agencies.
SOURCE OF POOL ASSETS
(Dollar Amounts in Millions)
6/30/04 6/30/05
!6 72.2 1 .*?a33 $85.8 &. 35.1
$21 7.0 $16.8 $20.5 $ 17.0
$1 24.8
Total Assets - $470.9 Million Total Assets - $510.8 Million
0 General I Special Remnue 0 Capital Pmjects
I Enterprise I Agency Funds I Internal SeNice
0 Other
The portfolio is an internal investment pool that uses the inactive cash from the various
funds of all City agencies, including the City, the Water District, and the Redevelopment
Agency. Total portfolio assets increased by 8% from the previous fiscal year. The top
three sources of portfolio assets are the Capital Projects fund ($217.0 million, 42% of
the total), followed by the Enterprise fund ($123.5 million, 24% of the total), and the
General fund ($85.8 million, 17% of the total). Together, these three funds account for
83% of total portfolio assets.
4
7
Investments are made in financial instruments authorized by the City's Investment
Policy and the California State Government Code. With the exception of bank deposits
and deposits in the California State Local Agency Investment Fund (LAIF), all
investments are in fixed-income instruments with known maturity dates.
Total $472,588,913
ASSET ALLOCATION
(Dollar Amounts in Millions)
Total $512,009,997
6/30/04 6/30/05 I
LAIF CASH $10.8 $63.9 LAIF CASH $109.6 @ COR ORATE Corp Paper $9.80@::
FEDERAL
FEDERAL AGENCY
AGENCY $264.3
At the end of FY 04-05
(June 30, 2005), 70% of
portfolio assets were
invested in federal
agencies, 13% in corporate
notes, and 12% in LAIF.
The allocation of assets to
federal agencies increased,
while the allocation to both
corporate notes and LAIF
both decreased from the
previous fiscal year. This
reflected the decrease in
interest rate spreads for
corporate notes relative to
U. S. Treasuries and the increase in short term interest rates'relative to LAIF. Within
the asset category of federal agencies, investments in the Federal Home Loan
Mortgage Corporation, the Federal Home Loan Bank, the Federal National Mortgage
Association, and the Federal Farm Credit Bank, constituted 37.4%, 34.6%, 26.3% and
1.7% of the total, respectively. Federal agencies are creations of the U. S. Congress
and include agencies and government-sponsored enterprises.
PORTFOLIO YIELDS
With 6 Month T-Bill Yields
Fy%W FY97-98 FY98-99 FYs9-00 FYWl FYo142 FY- FYo3.04 FY
5.77 5.89 5.71 5.81 6.18 5.28 4.24 3.43 33?
538 5.30 4.68 5.69 5.17 216 1.28 1.11 2.59
The average return of the
portfolio for FY 04-05 increased
to 3.55% from 3.43% the year
before. The portfolio yield is
heavily influenced by changes in
short-term market interest rates
since approximately 29% of total
investments were required to
mature within one year. The
average interest rate for six-
month U.S. Treasury Bills
increased to 2.59% from 1.1 1%
the year previous.
5
Return on investments is shown in two categories: (1) LAlF deposits and (2) all other
investments. LAlF is an acronym for Local Agency Investment Fund. It is an investment
pool managed by the California State Treasurer. The LAlF investment pool is very
liquid with average investments usually maturing in six to seven months. City deposits
in LAlF provide a desired measure of liquidity at attractive short-term rates, and typically
comprise 10% to 20% of the total portfolio, depending on market interest rates at the
time. In many respects, City
deposits in LAlF are
comparable to having a
checking account that earns
interest similar to U. S
Treasury instruments
maturing in one to five
years .
Compared to LAIF deposits,
all other City investments
will typically earn 40 basis
points more. However,
when market interest rates
rise rapidly, earnings on
LAlF deposits will briefly
exceed the earnings on all
other portfolio investments.
On the other side, when ma
Return on Investments
JuLYl99s-JuNEuw)5 6.7 6.4 6.1 5.8 5.5 5.2 A9 4 1
3.1 2.8 2.5 - I
1.3 -
I +WF I 6.16 5.89 5.61 5.17 4.26 4.17 4.11 3.97 3.90
5.34 353 276 2.33 1.78 1.57 1.44 2.00 285
(et rates have either been stable or have decreasec
rapidly, earnings on other investments can be anywhere from 30 basis points to 270
basis points (2.7%) greater than LAIF. LAlF turns over its investments in one-third the
time and responds to changes in market interest rates much quicker than other
investments in the portfolio. Reacting to short-term interest rates in FYO4-05 returns on
LAIF investments increased while returns on other portfolio investments were relatively
stable. This spread will likely decrease further as short-term rates continue to increase
in FYO5-06. Return on LAlF deposits may again exceed the return on all other portfolio
investments.
6
This graph shows the percent change in value of the portfolio over the last several
years. Investments gain and lose value subsequent to purchase because of changes in
market interest rates. When market interest rates decrease, investments made earlier
at higher rates will gain value. The reverse is true when market interest rates increase.
Accountants refer to these changes in value as unrealized gains and unrealized losses;
newspapers report them as paper gains and paper losses. Changes in value caused
by changes in market interest rates are normal and are expected. Excluding
investments in LAIF, all investments are exposed to this interest rate risk.
-UnrealG/L %
H istorical U nrealized G ains/L osses
as Percent of Am ortized Cost
4.00 % 3.50 % 3.00 %
2.50 % 2.00% 1.50 % 1 .oo %
0.50 % 0.00 % -0.50 %
-1 .oo % -1.50 % -2 .oo % -2.50 %
With a buy and hold policy, an objective of the City’s Investment Policy is to achieve an
average market rate of return over the economic cycle. The success in achieving this
objective can be approximated with having unrealized gains and losses that are
relatively equal over time. Tracking and measuring unrealized gains and losses could
also reveal any presence of high-risk investments in the portfolio. The changes in asset
values shown in the graph indicate that portfolio investments are within the acceptable
interest rate risk identified in the City’s Investment Policy.
The total portfolio had an unrealized loss in the latter part of FY 04-05. This unrealized
loss occurred as investments with high interest rates matured and were reinvested in
lower market rates. It is likely that the unrealized losses will grow in FYO5-06.
7
Cash income from portfolio
investments represents an
annuity stream of revenues
from the Treasury. This annuity
stream totaled $15.7 million, an
increase of approximately
$400,000 from the previous
fiscal year. Of the total cash
interest revenues earned by the
portfolio in FY 04-05, over $2.3
million was credited to the
General fund. Cash income is
a function of assets in the
portfolio, the market interest
rates at the time of the
investments, and the interest
payment schedules of the
issues.
FY 05-06 PREVIEW
ANNUITYSTREAMFROMTREASURY
(Cash Interest Revenue)
For Fiscal Years Indicated
$21.00
$1 5.00
$12.00
$9.00
$6.00
$3.00
$0.00
National and international economic forces are the primary influences on market
interest rates. It is anticipated that domestic economic growth will continue and that the
Federal Reserve will continue to raise the federal funds rate gradually in 25 basis points
increments. Short-term market rates will increase faster than long term rates resulting
in a higher but flatter yield curve. The federal funds rate on June 30, 2005 increased to
3.25% from 3.00%.
Approximately $64 million of investments with fixed maturity dates will mature in FY 05-
06. An additional $70 million may be called. Proceeds from these investments will be
reinvested at market rates lower than the maturing or called investments. Yields on our
LAlF investments are expected to be higher.
At the end of FY 04-05 (June 30, 2005), LAIF investments had a yield of 2.85%, and all
other investments had a yield of 3.90%. LAlF investment yield will increase to 3.5%
until March 2006 and then decrease to 3.2% by the end of the FYO5-06 (June 30,
2006). Yields on investments other than LAlF will decrease to 3.80% by the end of the
fiscal year.
Throughout the fiscal year ending June 30, 2005 the yield of the total portfolio averaged
3.55%. During fiscal year July 1, 2005 to June 30, 2006 (FYO5-06), the total portfolio is
projected to have an average yield of approximately 3.65%.
Total assets in the investment portfolio stood at approximately $511 million at the end
of FY 04-05. This is expected to increase to approximately $540 million by the end of
8
FY 05-06. Assessed property values are forecasted to increase by about 10.1 Yo, while
sales tax revenues and transient occupancy tax (TOT) revenues are expected to
increase by 5.3% and 4.8%, respectively. Additionally, interest revenue earned from
portfolio investments in FY 05-06 should approximate $1 7 million.
9
APPENDICES TO ANNUAL REPORT OF INVESTMENT PORTFOLIO
APPENDIXA: RISK MANAGEMENTAND DISCLOSURE
All investments are exposed to risk of some type. The objective of risk management is
to identify the risks involved and establish acceptable levels of risks that are consistent
with the City’s investment objectives. Risk management includes managing,
measuring, monitoring, and reporting the various risks to which portfolio investments
are exposed.
Portfolio investments are exposed to the following types of risks:
A. Credit risk.
a. Custodial credit risk.
a) Investments.
b) Deposits.
b. Default credit risk.
c. Concentration credit risk.
B. Interest rate risk.
As of June 30, 2005, the portfolio had the following investments and cash in its internal
investment pool.
Investment
U. S. agencies
Corporate Notes
Corporate Paper
LAlF
Sweep accounts
Cash accounts
Total
Disclosures
Maturities Market Value
July 2005 - May 201 0 $357,804,768
July 2005 - Mar 2008 67,416,719
July 2005 - Sep 2005 9,941,000
63,863,000
9,864,660
906,935
$509.797.083
Market Value
Gain (Loss)
$ .( 1,625,893)
604,077
(5,363)
$ (1.027.1 79)
Custodial Credit Risk (Investments). The City uses a third party custody and
safekeeping service for its investment securities. The Union Bank of California (UBC) is
under contract to provide these custodial services. Custodial credit risk is the risk that
the City will not be able to recover the value of its investments in the event of a UBC
10
failure. All City investments held in custody and safekeeping by UBC are held in the
name of the City and are segregated from securities owned by the bank. This is the
lowest level of custodial credit risk exposure.
Custodial Credit Risk (Deposits). The City maintains cash accounts at Wells Fargo
Bank (WFB) and UBC. At the conclusion of each business day, balances in these
accounts are “swept” into overnight investments. These overnight investments are in
either U. S. government securities (guaranteed) or in U. S. agency securities
(government sponsored). The California Code and the City’s Investment Policy
authorize both of these types of investments. A small amount of cash is not swept from
the WFB checking accounts to cover checks that may be presented for payment.
Amounts up to $1 00,000 are FDIC insured.
Default Credit Risk. Default credit risk is the risk that the issuer of the security does
not pay either the interest or the principal when due. The debts of most U. S. agencies
are not backed by the full faith and credit of the federal government; however, because
the agencies are U. S. Government-sponsored, they carry AAA credit ratings. The
default credit risk of these investments is minimal.
California state code limits investments in medium-term corporate notes to the top three
credit ratings (AAA, AA, and A). It is the City’s policy, however, to limit investments to
the top two credit ratings (AAA and AA). As of June 30, 2005, approximately 46% of
the investments in medium-term corporate notes had credit ratings below the AA limit
set by the City’s Investment Policy. All of these investments were made when the credit
ratings were either AAA or AA. California state code and the City’s Investment Policy
allow the City Treasurer to determine the course of action to correct exceptions to the
Policy. It is the intent of the City Treasurer to hold these investments in the portfolio
until maturity unless events indicate they should be sold. The default credit risk for
corporate notes with a credit rating of single A is lower than U. S. federal agencies or
LAIF, but is considered by the City Treasurer to be within acceptable limits for purposes
of holding to maturity. A credit rating of single A is within State code requirements.
The Local Agency Investment Fund (LAIF) is an investment pool managed by the
California State Treasurer. Its investments are short-term and follow the investment
requirements of the State. As of June 30, 2005, the average maturity of the LAIF
investments was 151 days. The State Treasurer does not contract for a credit rating to
be assessed for LAIF. California state code section 16429.3 specifically excludes LAIF
deposits from being transferred, loaned, impounded or seized by any state agency or
official. The State Treasurer has made a public written statement saying that he would
oppose any attempt to change this section of the State code. The default credit risk of
LAIF is minimal.
Concentration Credit Risk. Concentration credit risk is the heightened risk of
potential loss when investments are concentrated in one issuer. The California state
code does not identify a specific percentage that indicates when concentration risk is
present for any one issuer. The state code does, however, require that total
11
investments in medium-term corporate notes of all issuers not exceed 30% of the
portfolio. As of June 30, 2005, approximately 13% of the City’s total portfolio
investments were in medium-term corporate notes.
For concentration of investments in any one issuer, the City’s Investment Policy
requires that no more than 5% of investments in corporate notes be in any one issuer.
There is no similar requirement in either the state code or the City’s Investment Policy
for U. S. agencies. As of June 30, 2005, no investments in any one corporate issuer
exceeded 5% of total portfolio investments.
lnterest Rate Risk. Interest rate risk is the risk that investments will lose market value
because of increases in market interest rates. A rise in market interest rates will cause
the market value of investments made earlier at lower interest rates to lose value. The
reverse will cause a gain in market value. As of June 30, 2005, the portfolio had a .2%
loss in market value.
The City’s investment policy has adopted two means of limiting its exposure to market
value losses caused by rising market interest rates: (1) Limiting total portfolio
investments to a maximum modified duration of 2.2, and (2) requiring maturing
investments within one year be equal to an amount that is not less than the current
operating budget ($148,000,000). As of June 30, 2005, the modified duration of the
portfolio was 1.89, within the required maximum of 2.2. Investments maturing within
one year were $1 59,864,000, exceeding the required minimum of $1 48,000,000. The
City’s exposure to interest rate risk is within acceptable limits.
.
APPENDIX B: PORTFOLIO ACTIVITIES FOR FISCAL YEAR ENDED JUNE 30,2005
The City’s portfolio balance increased 8% from $472.6 million to $512.0 million in fiscal
year 2004-05. The increase of $39 million does little to show the volume of cash that
flows in and out of the portfolio in the course of one fiscal year. The following table
illustrates that the City Treasurer managed during fiscal year 2004-05 over two billion
dollars of cash inflows and cash outflows prompting investment decisions.
Cash inflows:
Bond Maturities
Bond Calls
Bond Sales
LAIF Withdrawals
Sweep
lnterest Income
Bond Purchases
LAIF Investments
Sweep Investments
Cash Investment (net)
Total
$ 38,075,000
90,715,000
6,000,000
184,577,000
709,761,000
15,679,000
21 4,256,000
138,800,000
71 8,356,000
(1,070,000)
$2.1 15.149.000
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CITY TREASURER’SFiscal Year Ended 6/30/05(FY 04-05)ANNUAL REPORT OFINVESTMENTS
MARKET REVIEWFiscal Year Ended 6/30/05
Federal Funds Target RateIN FY 04-051.50%2.00%2.75%2.50%2.25%1.75%1.25%3.00%3.25%0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%06/30/0408/10/0409/21/0411/10/0412/14/0402/02/0503/22/0505/03/0506/30/05
SHORT-TERM INTEREST RATESU.S. Treasury InstrumentsFiscal Year 2004 -20051.502.002.503.003.504.004.50JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNFive YearTwo Year6 MonthPercentJULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUN3.693.313.373.283.693.613.694.014.173.903.743.702.682.392.612.553.003.073.27 3.603.78 3.653.57 3.631.75 1.79 1.98 2.12 2.43 2.58 2.72 2.97 3.12 3.17 3.11 3.33
YIELD CURVE7/01/04, 12/31/04, 6/30/05Market Rates11.522.533.544.553 Mth2 Yr5 Yr10 Yr07/01/200412/31/200406/30/20053 Mth2 Yr5 Yr10 Yr1.4342.6773.6944.475 2.2123.0653.6074.2183.1163.6333.6983.913
PORTFOLIO REVIEW
INVESTMENT PORTFOLIODollar Amount of Assets (Fiscal Year End)$151.4$199.5$252.1$389.5$512.00$472.60$430.80$366.8$323.3$299.2$100.0$150.0$200.0$250.0$300.0$350.0$400.0$450.0$500.0$550.0FY95-96FY96-97FY97-98FY98-99FY99-00FY00-01FY01-02FY02-03FY03-04FY04-05Millions
Major Capital Project ExpendituresFY 2004-2005•Recycled Water Projects 13,028,400•StreetsPoinsettia Road 12,108,000Rancho Santa Fe Road 9,272,000Pavement Management 4,596,000 Traffic Signals and Other3,657,000 •Sewer and Pollution Control 7,572,000 •Parks Aviara 6,618,000Golf Course2,550,000Other3,157,000
SOURCE OF POOL ASSETS(Dollar Amounts in Millions)6/30/04$ 72.2$ 32.2$ 203.8$ 4.1$ 16.8$ 17.0GeneralSpecial RevenueCapital ProjectsEnterpriseAgency FundsInternal ServiceOtherTotal Assets -$470.9 Million6/30/05$ 85.8$ 35.1$ 123.5$ 3.9$ 20.5$ 25.0$217.0Total Assets -$510.8 Million$124.8
Return on InvestmentsPORTFOLIO EX-LAIF and LAIFJULY 1998 -JUNE 20051.01.31.61.92.22.52.83.13.43.74.04.34.64.95.25.55.86.16.46.7Jun-98Dec-98Jun-99Dec-99Jun-00Dec-00Jun-01Dec-01Jun-02Dec-02Jun-03Dec-03Jun-04Dec-04Jun-05EX-LAIFLAIFJun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 056.16 5.89 5.61 5.17 4.26 4.17 4.11 3.97 3.905.34 3.53 2.76 2.33 1.78 1.57 1.44 2.00 2.85
ANNUITY STREAM FROM TREASURY(Cash Interest Revenue)For Fiscal Years Indicated $12.16$14.82$17.02$20.36$15.23$15.68$18.37$19.88$0.00$3.00$6.00$9.00$12.00$15.00$18.00$21.00FY97-98FY98-99FY99-00FY00-01FY01-02FY02-03FY03-04FY04-05Millions
FY 05-06 PREDICTIONS•Short-term interest rates will increase before end of fiscal year•Yield curve will become slightly steeper •Average yield of portfolio for FY will be in 3.65% range (from 3.55%)•Total assets will rise to $540 million
To Access Monthly and Annual Investment Reports•Go to: www.ci.carlsbad.ca.us•Click on: City Hall•Click On: City Treasurer
QuestionsJim Stanton, City Treasurer