HomeMy WebLinkAbout2007-03-20; City Council; 18939; Report on city investmentsCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
18,939
3-20-07
TRS
REPORT ON CITY INVESTMENTS
AS OF FEBRUARY 28, 2007
DEPT. HEAD^7f
CITY ATTY. <i&2>>
CITY MGR.^2&>
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 February 28, 2007 is summarized below.
Pooled Investment Portfolio (Cash and Securities)
Par Value
Cost of Investments
Amortized Cost (1 )
Market Value (2)
Current Month
539,840,496
539,101,341
538,750,548
536,992,635
Prior Month
537,503,675
536,760,172
536,383,951
532,773,717
(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 2/28/07.
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)
General$71.0
Special Revenue
1.6
^Capital Projects
$ 242.7
Other $.1
Internal Service
Agency $25.3
Enterprise
$140.7
Total Treasurer's Investment Portfolio at Amortized Cost
February 28,2007 $538.8 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WITHDRAWN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
D
Dn
Dn
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 FEBRUARY 28. 2007
Pooled Investment Interest Income
Cash Income Fiscal
Year-to-Date *
Current
Month FYTD
14,678,199
Prior
Month FYTD
12,790,676
Current Month
Income
1 ,887,523
The cash income received is adjusted for any accrued interest purchased.
Pooled Investment Performance/Measurement
December 2006
January 2007
February 2007
Average Life
(Years)
1.89
1.83
1.75
Average Yield
To Maturity
4.40%
4.41%
4.42%
Modified Duration
1.725
1.669
1.604
All pooled investments have been made in accordance with the City's Investment Policy adopted
January 2, 1985 and last revised February 13, 2007. 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 FEBRUARY 28, 2007
Cash Balance by Fund:
General 71,077,892
Special Revenue 36,573,371
Debt Service 2,656,265
Capital Projects:
General Capital Construction 45,342,735
Traffic Impact Fees 11,474,974
Public Facilities Fees 49,486,047
Park Development 3,510,732
Transnet Taxes 5,725,477
Drainage Fees 10,359,471
Special Districts 85,602,355
Infrastructure Replacement 28,570,306
Other Capital Construction 2,733,385
Total 242,805,482
Enterprise:
Carlsbad Municipal Water District 66,120,598
Sewer Fund 61,525,443
Solid Waste 6,609,876
Storm Water 947,339
Golf Course 5,604,221
Total 140,807,477
Internal Service 22,595,406
Agency Funds 25,402,090
Redevelopment Funds (1) 0
Misc. Special Funds 0
Total General Ledger Balance ** 541,917,982
Reconciling Adjustments (2) (3,167,435)
Total Treasurer's Investment Portfolio at Amortized Cost 538,750,548
(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 3/7/07
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF FEBRUARY 28, 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 S&P
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 4,007,290 4,001,200
HOME DEPOT AA3 A+ 03/11/2011 06/12/2006 2,979,115 3,006,390
* 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 FEBRUARY 28, 2007
WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
Investment Cost Percent of Portfolio*
CITIGROUP
CREDIT SUISSE
GENERAL ELECTRIC CAP
SECURITY CAPITAL
HOME DEPOT
MERRILL LYNCH
US BANKCORP
WORLD SAVINGS BANK FSB
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
1.66%
0.79%
4.05%
0.55%
0.91%
0.55%
0.56%
PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER
FEDERAL FARM CREDIT BANK
FEDERAL HOME LOAN BANK
FEDERAL HOME LOAN MORTGAGE CORP
FEDERAL NATIONAL MORTGAGE ASSOC
Investment Cost Percent of Portfolio*
8,972,500.80
180,766,976.80
146,293,879.05
105,891,484.89
1.66%
33.53%
27.14%
19.64%
Total Portfolio
* No more than 5% may be invested with a single corporate issuer.
**There are no percentage limits on federal agency issuers.
$539,101,341.26