HomeMy WebLinkAbout2007-02-20; City Council; 18904; Report on City investments as of 1-31-2007CITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
18,904
02/20/2007
TRS
REPORT ON CITY INVESTMENTS
AS OF JANUARY 31, 2007
DEPT. HEAD ^m
CITY ATTY. <Q&
CITY MGR. "~£f>
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 January 31, 2007 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
Par Value
Cost of Investments
Amortized Cost(1)
Market Value (2)
Current Month
537,503,675
536,760,172
536,383,951
532,773,717
Prior Month
525,040,624
524,318,033
523,912,256
520,731 ,341
(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 1/31/07.
The $12 million variance in the balances from December to January occurred as a result of the
receipt of $3.3 million motor vehicle in lieu payments, $3.2 sales tax in lieu payments and $8.6
million in property taxes. The City's unrealized loss on the portfolio (market value) changed by an
additional .075% due to fluctuations in the market.
The equity portion of the various funds in the total portfolio is summarized in the graph on the
next page. Fund balances are restricted for various purposes. See Exhibit 7 for a more detailed
breakdown.
DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
*D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
Dn
Dn
PAGE 2 OF AB REPORT ON CITY INVESTMENTS AS OF JANUARY 31, 2007
FUND EQUITY IN POOLED INVESTMENTS
(Dollar Amounts in Millions)
General$i
Internal Service$22.6
Special Revenue
Capital Projects
$ 240.5
Enterprise$145.1
Total Treasurer's Investment Portfolio at Amortized Cost
January 31,2007 $536.4 Million
Pooled Investment Interest Income
Cash Income Fiscal
Year-to-Date *
Current
Month FYTD
12,790,676
Prior
Month FYTD
10,412,091
Current Month
Income
2,378,585
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
November 2006
December 2006
January 2007
Average Life
(Years)
1.97
1.89
1.83
Average Yield
To Maturity
4.32%
4.40%
4.41%
Modified Duration
1.802
1.725
1.669
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. Third 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 JANUARY 31, 2007
Cash Balance by Fund:
General 66,260,885
Special Revenue 35,402,648
Debt Service 2,908,741
Capital Projects:
General Capital Construction 45,033,491
Traffic Impact Fees 11,505,545
Public Facilities Fees 48,909,620
Park Development 3,505,294
Transnet Taxes 5,676,383
Drainage Fees 10,286,284
Special Districts 84,480,538
Infrastructure Replacement 28,538,126
Other Capital Construction 2,666,730
Total 240,602,010
Enterprise:
Carlsbad Municipal Water District 65,786,049
Sewer Fund 64,316,483
Solid Waste 6,624,613
Storm Water 1,006,449
Golf Course 7,440,249
Total 145,173,842
Internal Service 22,618,065
Agency Funds 26,767,731
Redevelopment Funds (1) 0
Misc. Special Funds 0
Total General Ledger Balance ** 539,733,923
Reconciling Adjustments (2) (3,349,971)
Total Treasurer's Investment Portfolio at Amortized Cost 536,383,951
(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 2/7/07
ISL
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF JANUARY 31, 2007
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
MERRILL LYNCH 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 and S&P)
NONE
Investments with Subsequent Changes in Credit Rating *
Latest Carrying Market
Moodv's S&P Maturity Date Purchased Value Value
CREDIT SUISSE AA3 A+ 04/15/2007 04/01/2002 4,012,260 4,002,000
HOME DEPOT AA3 A+ 03/11/2011 06/12/2006 2,978,680 2,971,740
* 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 JANUARY 31, 2007
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
MERRILL LYNCH
US BANKCORP
WORLD SAVINGS BANK FSB
PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER
1,995,651.84
8,961,239.70
4,270,881.12
18,451,402.35
3,380,298.92
2,974,590.00
4,884,751.43
2,952,150.09
2,999,689.80
0.37%
1.67%
0.80%
4.07%
0.55%
0.91%
0.55%
0.56%
Investment Cost Percent of Portfolio**
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN MORTGAGE CORP
FEDERAL NATIONAL MORTGAGE ASSOC
Total Portfolio
8,972,500.80
180,766,976.80
146,293,879.05
105,891,484.89
1.67%
33.68%
27.25%
19.73%
$536,760,171.59
* No more than 5% may be invested with a single corporate issuer.
**There are no percentage limits on federal agency issuers.
/i