HomeMy WebLinkAbout2006-09-26; City Council; 18740; Report City Investments August 31, 2006CITY OF CARLSBAD - AGENDA BILL
AB# 18,740
MTG. 9/2W06
DEPT. TRS
REPORT ON CITY INVESTMENTS
AS OF AUGUST 31, 2006 Lh//4DEPT. HEAD ffl/ (
CITY ATTY. tf$5^
CITY MGR. (s^—
RECOMMENDED ACTION:
Accept and file report.
ITEM EXPLANATION:
The City's Investment Policy requires the City Treasurer to report to the City Council on a monthly
basis the status of the City's pooled investment portfolio. A quarterly report is also required for
the investments of bond proceeds held separately. The City's pooled investment portfolio as of
the month ended August 31, 2006 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
Par Value
Cost of Investments
Amortized Cost (1)
Market Value (2)
Current Month
503,173,303
502,643,653
502,188,235
497,612,026
Prior Month
509,035,024
509,035,725
508,035,675
501,713,917
(1) The cost of investments adjusted for amortized premiums and discounts.
(2) The amount at which the investments could be sold. Source of market values is Union Bank
of California's custodial report as of 08/31/06.
The equity portion of the various funds in the total portfolio is summarized in the graph below.
Fund balances are restricted for various purposes. See Exhibit 7 for a more detailed breakdown.
FUND EQUITY IN POOLED INVESTMENTS
(Dollar Amounts in Millions)
Special Revenue$ 35.7
.Capital Projects
$ 237.9
General
$48.
Other $1.6
Internal Service2i8
Agency $2?
Enterprise
$129.5
Total Treasurer's Investment Portfolio at Amortized Cost
$502.2 Million
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
Council Accepted The Report .
D
D
D
D
PAGE 2 OF AB REPORT ON CITY INVESTMENTS AS OF AUGUST 31. 2006
Pooled Investment Interest Income
Cash Income Fiscal
Year-to-Date *
Current
Month FYTD
3,850,795
Prior
Month FYTD
2,054,903
Current Month
Income
1,795,891
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
June 2006
July 2006
August 2006
Average Life
(Years)
2.24
2.19
2.14
Average Yield
4.19%
4.24%
4.26%
Modified Duration
2.022
1.988
1.950
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 . 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. First 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
DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us
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EXHIBIT 7
CITY OF CARLSBAD
Fund Equity in Pooled Investments
AS OF AUGUST 31, 2006
Cash Balance by Fund:
General 48,109,623
Special Revenue 35,740,755
Debt Service 1,452,421
Capital Projects:
General Capital Construction 45,131,524
Traffic Impact Fees 11,706,746
Public Facilities Fees 46,878,494
Park Development 3,723,280
Transnet Taxes 7,725,131
Drainage Fees 9,874,523
Special Districts 80,782,578
Infrastructure Replacement 29,241,920
Other Capital Construction 2,814,487
Total 237,878,684
Enterprise:
Carlsbad Municipal Water District 53,609,544
Sewer Fund 63,328,174
Solid Waste 6,547,225
Storm Water 640,819
Golf Course 5,392,071
Total 129,517,834
Internal Service 21,787,700
Agency Funds 27,581,423
Redevelopment Funds (1) 0
Misc. Special Funds 0
Total General Ledger Balance ** 502,068,441
Reconciling Adjustments (2) 119,794
Total Treasurer's Investment Portfolio at Amortized Cost 502,188,235
(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 09/08/06
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF AUGUST 31, 2006
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
ALLSTATE FINANCIAL AA2 AA
CITIGROUP AA1 AA-
GENERAL ELECTRIC AAA AAA
HOME DEPOT AA3 AA
SECURITY CAPITAL - GE AAA AAA
US BANCORP AA2 AA-
WORLD SAVINGS BANK AA3 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 *
Latest Carrying Market
Moodv's S&P Maturity Date Purchased Value Value
CREDIT SUISSE AA3 A+ 04/18/07 AA3/AA- 4,037,112 4,005,880
* 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.
1-3
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF AUGUST 31, 2006
WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
ALLSTATE FINANCIAL
CITIGROUP
CREDIT SUISSE
GENERAL ELECTRIC CAP
SECURITY CAPITAL
HOME DEPOT
US BANKCORP
WORLD SAVINGS BANK FSB
1,995,651.84
8,961,239.70
4,270,881.12
18,451,402.35
3,380,298.92
2,974,590.00
2,952,150.09
2,999,689.80
0.40%
1.78%
0.85%
4.34%
0.59%
0.59%
0.60%
PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER
Investment Cost Percent of Portfolio**
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN MORTGAGE CORP
FEDERAL NATIONAL MORTGAGE ASSOC
Total Portfolio
5,990,313.30
168,736,471.81
155,270,886.48
92,202,773.95
1.19%
33.57%
30.89%
18.34%
$502,643,652.91
* No more than 5% may be invested with a single corporate issuer.
**There are no percentage limits on federal agency issuers.