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Home My WebLink About2005-12-06; City Council; 18356; Report on City Investments as of 10/31/05I 6 Current Month 18,356 TITLE: MTG. 12/6/05 REPORT ON CITY INVESTMENTS DEPT. TRS AS OF OCTOBER 31,2005 Prior Month RECOMMENDED ACTION: Accept and file report. Par Value Cost of Investments Amortized Cost (1) ITEM EXPLANATION: 507,152,070 503,6.64,551 507,467,141 504,110,621 506,485,954 503,100,154 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 October 31, 2005 is summarized below. I Pooled Investment Portfolio (Cash and Securities) Market Value (2) 500,938,129 499,112,476 (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 10/31/05. 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 brez down. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Special Revenue General [nternal Service $20.7 Agency $23.1 Enterprise - -.PA c1 3134.Y ‘ -v Total Treasurer’s Investment Portfolio at Amortized Cost $506.5 Million I PAGE TWO OF AGENDA BILL NO. /8.351;7 I Current Prior Current Month Month FYTD Month FYTD Income Cash Income Fiscal Year-to-Date * 6,113,693 4,276,462 1,837,231 Pooled Investment Interest Income August 2005 September 2005 October 2005 Average Life (Years) Average Yield Modified Duration 2.07 3.84% 1.918 2.01 3.81 % 1.856 1.99 3.87% 1.841 *The cash income received is adjusted for any accrued interest purchased. II Pooled Investment Performance/Measurement II All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised October 18, 2005. 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. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. EXHIBITS FOR POOLED INVESTMENTS: 1. 2. 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. Second 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 5 C 0 a 0 L .- h 5 S s U C 2 a 0 L 5 B b rt C 0 .- 5 E It! S 0 +I C S L 0 5 a S 0 .- b h r, C 0 E a It! U L S 0 I1 G a \ Z s Z 0 0 0 0 0 n o 0 a3 I- I- 0 cn cn I-. z L 0 8 0 8 0 0 0 0 0 a o 0 8 0 8 0 0 0 0 0 lY I- a3 d c? a3 d c? a3 T- *” a $! T- d m 9 m T- I-- 2 a3 0 (0 v) ”? T- 2 o, o, cv 0 ‘4 m- 7 m d cv b W v) 9- s z o b T- (.j N m (? T- T- ‘D m 0 N (v m 2 I N N m m a” t n e rn 3 o T- t N o, N k 0 o, d cv N m” mi T- d b cv I-” s: I- o o Q s 7 2 s I- 2 T- T- a- #3 W I- d” o,- 2 T- a, d #3 o, 2 9; T- 0- m- 0 0 m fff T- 9; m a3 CD 0 m fff e. EXHIBIT 2 0 0 0 8 2 m n N W $ 3 s a! s 8 s 3 s 8 s .a 0 s 0 3 0 3 * 3 3 64 rc, 0 0 0 0 W \o x 3 P" W P 5: 64 Li 00, P 00 m 0 0 0 0 $1 2 2 d m M 0 0 0 0 m *- m b4 4 u n - W s 2 N 0 0 0 d P 2 N m m- 10 d N 3 n u E Y EXHIBIT 3 I I 0 I U d ! 4 i U c * * t . \ t * 8 + 8 * * * (I * 3 I i * 1 EXHIBIT 4 b- r r 000000 000000 000000 ooomoo ooomoo 000000 499999 0" 0- 0- 0- 0- 9 9 z ocommo(D rOOO-0 000000 b(V(D(Db0 00---m rr-rr-co -0-rr-O 222222 ...... W 0 0 3 0 0 N PI W 2 s U n z 0 v) Y s 0 c c- f z 0 In 0 0 e e T- T- T- O 0 0 I EXHIBIT 5 7 EXHIBIT 6 000000000 000000000 p! 3 8 2 wooooooooo 0- 0 0 0 0 0 0 0 0 >949O-b.0.0-99 8 g- g g- g g- g g g zzzzzzzzzzzzzzzzzzzz 00000000000000000000 Om-Nr-rr-rNNNNNNNNNm 00000000000000000000 00000000000000000000 NNNNNNNNNNNNNNNNNNNN zs:as::s:a:s:a;a:zaa ~~oooooo~-oomoomooo~ $g~g~gg~2gg~g~p~~$g 000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF OCTOBER 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 43,215,149 33,975,654 2,420,576 51,423,461 10,677,591 39,856,021 4,169,247 8,637,919 9,815,331 79,493,239 22,732,791 (55,365) 226,750,235 55,914,540 62,345,185 6,522,734 483,992 29,642,658 154,909,108 20,697,505 23,120,599 0 0 505,088,826 1,397,128 506,485,954 (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 11lQ8lO5 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF OCTOBER 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 S&P) Investments with Subsequent Changes in Credit Rating * CREDIT SUlSSE DEAN WITTER DISCV MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS Latest Moodv's - S&P Maturitv Date Purchased AA3 A+ 0411 8/07 AASIAA- AA3 A+ 1 1 IO 1 IO5 AA3IAA- AA3 A+ 0411 5/06 AA3lAA- A2 A oaii 5/06 AA~IAA- A2 A 05/02/06 AA3lAA- Carrying - Value 4,086,815 3,000,000 11,608,281 7,110,206 1,997,845 Market - Value 4,053,240 3,000,000 11,674,820 7,102,380 2,010,520 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 OCTOBER 31,2005 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ALLSTATE FINANCIAL ClTl GROU P ASSOCIATES CORP CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL MORGAN STANLEY DEAN WITTER DEAN WITTER DlSCV SBC COMMUNICATIONS PACIFIC BELL WORLD SAVINGS BANK FSB Investment Cost Percent of Portfolio* 1,995,651.84 0.39% 0.39% 2,000,784.90 4,270,881.12 0.84% 17,489,469.62 4.11% 3,380,298.92 1 1,680,494.15 2.88% 2,950,553.97 1,978,738.00 1 .89% 7,593,579.83 2,999,689.80 0.59% 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 1.77% 142,548,772.08 28.09% 1 34,122,435.00 26.43% 9,659,665.28 I .go% 102,153,712.66 20.13% Total Portfolio $507,467,140.65 * No more than 5% may be invested with a single corporate issuer. **There are no percentage limits on federal agency issuers. /3