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Home My WebLink About2005-11-01; City Council; 18326; Report on City Investments as of 09/30/050 w U a i5 4 .. z 0 I- U .-I u z 3 0 u - a - Par Value 18,326 MTG. 11/1/05 Current Month Prior Month 503,6643 1 506,669,975 DEPT. TRS Cost of Investments Amortized Cost (1) Market Value (2) 1 REPORT ON CITY INVESTMENTS 504,110,621 507,106,985 503,100,154 506,078,459 499,112,476 504,143,423 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 September 30, 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 9/30/05. 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 7 for a more detailed break1 Iwn. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Special Revenue General c 34-3 Enterprise $147.9 ‘ Total Treasurer’s Investment Portfolio at Amortized Cost $503.1 Million Pooled investment Interest Income n I I Current Prior Current Month Month FYTD Month FYTD Income Cash Income Fiscal Year-to-Date * 4,276,462 2,740,822 1,535,640 July 2005 *The cash income received is adjusted for any accrued interest purchased. Pooled investment PerformancelMeasurement Average Life (Years ) Average Yield Modified Duration 2.07 3.80% 1.916 August 2005 September 2005 2.07 3.84% 1.918 2.01 3.81 % 1.856 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. Current Quarter The City’s Investment Policy requires that investments not less than $1 58,000,000 mature within one year. Exhibit 2 shows that the portfolio is under this limit by $11,058,870 for the month of September 2005. This situation will self correct by November 2005. Prior Quarter The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. Par Value cost In summary, the City’s investments of bond proceeds held separately as of the quarter ended September 2005 is as follows: 23,262,283 33,496,800 23,262,283 33,496,800 All investments of bond proceeds have been made in accordance with the City’s Investment Policy and the trust indenture for each issue. EXHIBITS FOR POOLED INVESTMENTS: 1. 2. 3. 4. 5. 6. 7. 8. 9. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield Investment Portfolio Breakdown Of Maturities Yield Comparison Graph Cumulative Cash Income Graph First Quarter Transact ions Detailed Investment Report 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 3 EXHIBIT 1 5 S s .- b h 5 S 0 I 2 U S 3 L- 0 5 b a' S r" .- 5 S I" U S e L 3 0 11 i3 a 2 5 z 0 0 0 0 0 0 0 N d 9 N d 9 0 0 0 a, W a, 9 (0- 0 0 a, a, 0" '4 r a, W 2 b a, '9 03 b b 0 a, a- b" z L 0 2 0 0 9 0 0 0 0 0 IY k EXHIBIT 2 s 8 s 8 s 8 s 9 s B s 8 s 2 s c? 0 v; 0 0 (u 3 vl P 3 3 3 M 0 0 R 3 0 0 0 n W N 0 0 3 0 0 0 z! m d N N '"* "i. 3 N z- 0" mn d W m 3 2 P 3 r- m 0 0 0 0 0 0 3 m W 2 0 3 ej n 3 W s "! m N 0 0 0 m 0 0- 2 In 0 0 2 3 0 m W 2 2 In 0 3 In 00 W '"i 2 d N 0 m m 0- w m d N N In! *, 3 3 0 k e a V z V E F;; E: !2 c m cl 5 0 n '1 + I I EXHIBIT 3 + 8 s B Ilt 1 8 8 t 4 8 + 8 8 \ 1 (I , * \ \ 3 h i 8 8 * t 8 * 8 4 ‘t EXHIBIT 4 L 7 EXHIBIT 5 0 8 0 0 (3 (3 0- 9 0 8 8 g 0 (3 (0 7 d 0 8 2 0 0 (3 0" 0 8 0 0 0 (3 9 0- (0 0 0 x 0 0 wmcuw *bbW mob00 bmcumo WKKOO SSS$S zzzzz zzzaa 00000 bOWQ3 0-00 0000 mro- vrm- (0 0 hl 7000 2222 aaaa 0 mmLnmLn 00000 00000 mw(Dcucu ocucuoo(0 00000 22222 zzszzg x ..... ZgSStl% 0 0 hl -0omm ooooow 00000~ 22222I- roomm3 -rrOOQ li, 0 0 N w w mmmm 0000 0000 cucucucu k 3 GZE? e9.2 cocococo 0000 TrmLnom 00000 00000 cucucucucu azzs: e.==e2 amcur7 000-0 m 0000000 EXHIBIT 6 >s < ww 3s 8 g ;;,8-S;,SS 8 8 8-2 8-8 8 s 8 c3gz-gggz cz 8 8 k2 8 8 8 8 8 8 8 8 8 8 8 8 88 8 $oooommocnooooocooo F~m00dF0wm0w-0F~co000oomoooommoo 0 0- 0- m- In 0 In 0 0- 0- 0- 0 m- 0 0- In- b- m- 0 0 0 m In 0 In m- 0 F- a- 0- m- m- 0- 0- 0- 0- 0- 0- b- 0- 0- 0- 0- F- N- 0- 0- 9t9qm-9m-9999o-m-9o-~-w m oom d 0como-t mo mm m o 90 o o m o o ooqqqq 7- N- d- m- -- 7- ui 0- N- ui N- d- d n- N- 7- ui In N' m- ro- d- 0- d d d - d m cn UJ N In N N v) N m Ln Ln m m N m In d zzzzzzzzzzzzzzzzzzzz 00000000000000000000 Om-N------NNNNNNNNNln 00000000000000000000 00000000000000000000 0N000000N~00m00m000N QQepQQQQNNNNNNQQNNNN km-om--m:z:a:aro:i=aa i%g3ggggazggggggg$5$g 000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF SEPTEMBER 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 43,341,739 34,304,037 2,417,432 50,608,877 10,549,052 40,481,449 4,160,782 8,838,054 9,818,671 80,022,080 22,733,091 6,696 227,218,751 48,165,812 61,901,450 6,385,224 350,247 31,066,905 147,869,638 20,988,089 23,275,425 0 0 499,415,113 3,685,041 503,100,154 (I) 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 1011 2/05 ra EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF SEPTEMBER 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 S8P) Moodv's - S&P ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP GENERAL ELECTRIC WORLD SAVINGS BANK SECURITY CAPITAL - GE AA2 AA AA1 AA- AA1 AA- AAA AAA AAA AAA AA3 AA- Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be AIIPI or better by both Moody's and S&P) (Ratings of other debt must be AA or better by Moody's or S&P) Investments with Subsequent Changes in Credit Rating * CREDIT SUISSE DEAN WITTER DISCV MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS Latest Moodv's - S&P Maturitv Date Purchased AA3 A+ 0411 8/07 AA~IAA- AA3 A+ 11/01/05 AA3lAA- AA3 A+ 0411 5/06 AA3lAA- A2 A 0811 5/06 AASIAA- A2 A 05/02/06 AA3lAA- Carrying Value 4,091,785 2,999,159 11,609,796 7,122,763 1,997,488 Market - Value 4,070,120 3,005,160 1 1,702,196 7,121,990 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 pot-lfolio until maturity unless events indicate they should be sold. 13 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF SEPTEMBER 30,2005 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ALLSTATE FINANCIAL 1,995,651.84 ClTlGROUP ASSOCIATES CORP 2,000,784.90 CREDIT SUISSE 4,270,881.12 GENERAL ELECTRIC CAP SECU Rl TY CAPITAL MORGAN STANLEY DEAN WITTER DEAN WITTER DISCV SBC COMMUNICATIONS PACIFIC BELL 17,489,469.62 3,380,298.92 11,680,494.1 5 2,950,553.97 1,978,738.00 7,593,579.83 WORLD SAVINGS BANK FSB 2,999,689.80 0.40% 0.40% 0.85% 4.14% 2.90% 1.90% 0.60% PERCENTAGE WEIGHTINGS 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 I .7a% 137,679,772.08 27.31 Yo 129,122,435.00 25.61 % 9,659,665.28 1.92% 102,153,712.66 20.26% Total Portfolio $504,110,621.37 * No more than 5% may be invested with a single corporate issuer. **There are no percentage limits on federal agency issuers. r4 * ! c ! : - f I c P n m 0 S 0 P a EXHIBIT 10 EXHIBIT 11 0- g 0 0 7. m ftf r W C s ._ c m 0 W W - 3 c - % m 0 0 W