HomeMy WebLinkAbout2005-09-27; City Council; 18289; Report on City Investments as of 08/31/05CITY OF CARLSBAD -AGENDA BILL
Par Value
Cost of Investments
Amortized Cost (1 )
Market Value (2)
-1 .?
Current Month Prior Month
506,669,975 510,142,346
507,106,985 51 1 ,I 73,884
506,078,459 51 0,039,927
504,143,423 506,716,669
AB# 18,289 I TITLE:
IUTG. 9/27/05 REPORT ON CITY INVESTMENTS IDEPT. TRS I AS OF AUGUST 31,2005
CITY ATTY
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 August 31,2005 is summarized below.
II Pooled Investment Portfolio (Cash and Securities) II
(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 8/31/05.
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 bre: down.
FUND EQUITY IN POOLED INVESTMENTS
(Dollar Amounts in Millions)
Enterprise $119.6 ,
Total Treasurer’s Investment Portfolio at Amortized Cost
$506.1 Million
Current Prior
Month FYTD Month FYTD
Cash Income Fiscal
Year-to-Date * 2,740,822 1,442,879
*The cash income received is adjusted for any accrued interest purchased.
Current Month
Income
1,297,943
June 2005
July 2005
August 2005
The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six
(6) months.
Average Life
(Years) Average Yield Modified Duration
2.04 3.74% 1.890
2.07 3.80% 1.916
2.07 3.84% 1.91 8
EXHIBITS FOR POOLED INVESTMENTS:
1.
2.
3. Yield Comparison Graph
4. Cumulative Cash Income Graph
5. First 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
EXHIBIT 1
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF AUGUST 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
78,050,085
35,154,186
2,450,873
50,613,739
1031 1,465
40,760,543
4,152,848
9,011,406
9,490,101
78,927,648
22,689,125
506,686
226,663,56 1
50,208,825
61,923,177
6,418,846
425,268
738,720
119,714,836
20,843,545
26,232,977
0
0
509,110,064
(3,031,605)
506,078,459
(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 9/08/05.
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF AUGUST 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
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 SBP)
INTERNATIONAL LEASE - ILFC
COOPERATIVE ASSOC - CATDA P-I A-I +
A- 1
Investments with Subsequent Changes in Credit Rating *
Latest Carrying Market
Moodv's - S&P Maturitv Date Purchased Value Value
CREDIT SUISSE AA3 A+ 04/18107 AA3IAA- 4,096,755 4,098,200
DEAN WITTER DISCV AA3 A+ 11/01/05 AA3IAA- 2,998,318 3,011,520
MORGAN STANLEY DEAN WITTER AA3 A+ 0411 5/06 AA3lAA- 11,611,311 11,729,456
PACIFIC BELL A2 A 08/15/06 AA3lAA- 7,135,319 7,158,110
SBC COMMUNI CAT1 ONS A2 A 05102lO6 AA3lAA- 1,997,131 2,022,120
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 AUGUST 31,2005
WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
ALLSTATE FINANCIAL
ClTlGROUP
ASSOCIATES CORP
COOPERATIVE ASSOC - CATDA (CP)
CREDIT SUISSE
GENERAL ELECTRIC CAP
SECURITY CAPITAL
INTERNATIONAL LEASE - ILFC (CP)
MORGAN STANLEY DEAN WITTER
DEAN WITTER DlSCV
SBC COMMUNICATIONS
PACIFIC BELL
WORLD SAVINGS BANK FSB
Investment Cost Percent of Portfolio*
8,020,253.1 9 1.58%
1,591,525.00 0.71 %
2,000,784.90
4,925,900.00 0.97%
4,270,881.12 0.84%
17,489,469.62 4.12%
3,380,298.92
4,923,913.89 0.97%
1 1,680,494.1 5 2.89%
2,950,553.97
1,978,738.00 1.89%
7,593,579.83
2,999,689.80 0.59%
PERCENTAGE WE/GHTINGS BY FEDERAL AGENCY ISSUER
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN MORTGAGE CORP
FNMA DISCOUNT NOTE
FEDERAL NATIONAL MORTGAGE ASSOC
Investment Cost Percent of Portfolio**
8,990,343.30 1.77%
137,679,772.08 27.15%
129,122,435.00 25.46%
9,659,665.28 1.90%
102,153,712.66 20.14%
Total Portfolio $507,106,985.29
* No more than 5% may be invested with a single corporate issuer.
**There are no percentage limits on federal agency issuers. /f