HomeMy WebLinkAbout2006-12-05; City Council; 18817; Report on City Investments as of 10-31-06CITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
18,817
12/05/06
TRS
REPORT ON CITY INVESTMENTS
AS OF OCTOBER 31 , 2006
DEPT. HEAD fflfM
CITYATTY. 1^0
CITY MGR. 4>P
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 October 31, 2006 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
Par Value
Cost of Investments
Amortized Cost (1)
Market Value (2)
Current Month
503,053,142
502,523,491
502,106,900
499,002,183
Prior Month
495,702,596
495,172,945
494,736,940
491 ,209,379
(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 10/31/06.
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
$33.5
^Capital Projects
$ 237.0
General
$44.'Other $3.5
Internal Service$22.4
Agency $23.9
Enterprise
$137.2
Total Treasurer's Investment Portfolio at Amortized Cost
$502.1 Million
DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
Xn
Dn
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
Dn
D
D
PAGE 2 OF AB REPORT ON CITY INVESTMENTS AS OF OCTOBER 31. 2006
Pooled Investment Interest Income
Cash Income Fiscal
Year-to-Date *
Current
Month FYTD
7,326,402
Prior
Month FYTD
5,368,927
Current Month
Income
1 ,957,475
The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
August 2006
September 2006
October 2006
Average Life
(Years)
2.14
2.09
1.95
Average Yield
To Maturity
4.26%
4.26%
4.28%
Modified Duration
1.950
1.909
1.784
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. 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
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EXHIBIT 7
CITY OF CARLSBAD
Fund Equity in Pooled Investments
AS OF OCTOBER 31, 2006
Cash Balance by Fund:
General 44,599,552
Special Revenue 33,540,856
Debt Service 1,457,816
Capital Projects:
General Capital Construction 44,658,690
Traffic Impact Fees 11,883,913
Public Facilities Fees 48,011,068
Park Development 3,584,758
Transnet Taxes 5,748,387
Drainage Fees 10,327,607
Special Districts 81,422,183
Infrastructure Replacement 28,699,163
Other Capital Construction 2,666,690
Total 237,002,459
Enterprise:
Carlsbad Municipal Water District 65,558,507
Sewer Fund 63,513,359
Solid Waste 6,534,551
Storm Water 915,341
Golf Course 659,138
Total 137,180,895
Internal Service 22,433,255
Agency Funds 23,893,075
Redevelopment Funds (1) 0
Misc. Special Funds 0
Total General Ledger Balance ** 500,107,908
Reconciling Adjustments (2) 1,998,992
Total Treasurer's Investment Portfolio at Amortized Cost 502,106,900
(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 11/07/06
IA
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF OCTOBER 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 S&P
ALLSTATE FINANCIAL AA2 AA
CITIGROUP AA1 AA-
CREDIT SUISSE AA3 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)
NONE
Investments with Subsequent Changes in Credit Rating *
Latest Carrying Market
Moodv's S&P Maturity Date Purchased Value Value
NONE
* 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.
13
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF OCTOBER 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
150,270,886.48
92,202,773.95
1.19%
33.58%
29.90%
18.35%
$502,523,491.20
* No more than 5% may be invested with a single corporate issuer.
**There are no percentage limits on federal agency issuers.