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HomeMy WebLinkAbout2006-02-07; City Council; 18430; Report on City Investments as of 12/31/05CITY OF CARLSBAD - AGENDA BILL 10 AB* 18.430 MTG. 2/7/06 DEPT. TRS TITLE: REPORT ON CITY INVESTMENTS AS OF DECEMBER 31, 2005 DEPT. H CITY ATT* CITY MGR: 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 December 31, 2005 is summarized below. Pooled Investment Portfolio (Cash and Securities) Par Value Cost of Investments Amortized Cost (1) Market Value (2) Current Month 511,927,121 511,996,947 51 1 ,034,607 505,957,352 Prior Month 501 ,957,700 502,022,526 501,026,142 495,556,858 (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 12/31/05. 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 breakdown. FUND EQUITY IN POOLED INVESTMENTS (Dollar Amounts in Millions) Special Revenue ^Capital Projects $ 225.7 General $49.5, Other $913 Internal Service $21.2Agency $23 3 Enterprise $148.4 Total Treasurer's Investment Portfolio at Amortized Cost $511.03 Million PAGE TWO Pooled Investment Interest Income Cash Income Fiscal Year-to-Date * Current Month FYTD 8,475,409 Prior Month FYTD 7,640,336 Current Month Income 835,073 *The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performance/Measurement October 2005 November 2005 December 2005 Average Life (Years) 1.99 2.18 2.10 Average Yield 3.87% 3.93% 3.95% Modified Duration 1.841 2.002 1.933 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. In summary, the City's investments of bond proceeds held separately as of the quarter ended December 2005 is as follows: Investment Portfolio for Bond Proceeds Par Value Cost Current Quarter 27,476,085 27,476,085 Prior Quarter 23,262,283 23,262,283 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. Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield 2. Investment Portfolio Breakdown Of Maturities 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. Second Quarter Transactions 6. Detailed Investment Report 7. Fund Equity in Pooled Investments 8. Corporate Note and Commercial Paper Ratings 9. Percentage Weightings By Corporate Note Issuer EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY: 10. Detailed Investment Report - Quarterly Report EXHIBIT FOR SUMMARY OF OUTSTANDING HOUSING LOANS: 11. 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CO T- O O QCN LO cd d r^co T- ^ o enCO O) CD O T- LO LO CNoo in i^O COCO O T CD h- CO COco" W in o" CM" T- T- CO CO -CNO> oo t- LU LU Zo 2ac.oo o co m CO LUZoc D. Q ^a o oCD <'o o O LU CO Lti ^ l^i^S^w3z^L?o dkQ±>±± ^ O z < < <5 o o _i _i _i o o o o o o Q EXHIBIT 7 Fund Equity in Pooled Investments AS OF DECEMBER 31, 2005 Cash Balance by Fund: General 49,500,018 Special Revenue 33,839,368 Debt Service 2,712,946 Capital Projects: General Capital Construction 51,316,649 Traffic Impact Fees 10,992,341 Public Facilities Fees 39,684,052 Park Development 4,169,138 Transnet Taxes 7,711,112 Drainage Fees 10,025,252 Special Districts 76,246,746 Infrastructure Replacement 22,747,899 Other Capital Construction 2,778,687 Total 225,671,875 Enterprise: Carlsbad Municipal Water District 55,031,071 Sewer Fund 61,760,503 Solid Waste 6,268,662 Storm Water 370,976 Golf Course 24,996,817 Total 148,428,028 I nternal Service 21,156,221 Agency Funds 23,296,688 Redevelopment Funds (1) 0 Misc. Special Funds 0 Total General Ledger Balance ** 504,605,144 Reconciling Adjustments (2) 6,429,463 Total Treasurer's Investment Portfolio at Amortized Cost 511,034,607 (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 01/09/06 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 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) ALLSTATE FINANCIAL ASSOCIATES CORP GENERAL ELECTRIC SECURITY CAPITAL - GE WORLD SAVINGS BANK Moodv's AA2 AA1 AAA AAA AA3 AA AA- AAA AAA AA- Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be A1/P1 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 MORGAN STANLEY DEAN WITTER PACIFIC BELL SBC COMMUNICATIONS Moodv's AA3 AA3 A2 A2 S&P A+ A+ A A Latest Maturity Pate 04/18/07 04/15/06 08/15/06 05/02/06 Purchased AA3/AA- AA3/AA- AA3/AA- AA3/AA- Carrying Value 4,076,874 11,605,251 7,085,093 1,998,560 Market Value 4,041,680 11,640,716 7,072,460 2,005,060 * 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 DECEMBER 31, 2005 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* ALLSTATE FINANCIAL CITIGROUP ASSOCIATES CORP CREDIT SUISSE GENERAL ELECTRIC CAP SECURITY CAPITAL MORGAN STANLEY DEAN WITTER SBC COMMUNICATIONS PACIFIC BELL WORLD SAVINGS BANK FSB 1,995,651.84 2,000,784.90 4,270,881.12 17,489,469.62 3,380,298.92 11,680,494.15 1,978,738.00 7,593,579.83 2,999,689.80 0.39% 0.39% 0.83% 4.08% 2.28% 1.87% 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** 8,990,343.30 166,380,081.83 139,046,435.00 9,659,665.28 102,153,712.66 1.76% 32.50% 27.16% 1.89% 19.95% Total Portfolio * No more than 5% may be invested with a single corporate issuer. **There are no percentage limits on federal agency issuers. $511,996,947.24 COCDO•Jo 'E3 0 £*? 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