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HomeMy WebLinkAbout2007-09-11; City Council; 19145; Report on city investments as of 7/31/071 CITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 19.145 09/11/07 TRS REPORT ON CITY INVESTMENTS AS OF JULY 31, 2007 DEPT. HEAD >%^ CITYATTY. "£&- CITY MGR. ""ISP 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 July 31, 2007 is summarized below. Pooled Investment Portfolio (Cash and Securities) Par Value Cost of Investments Amortized Cost (1) Market Value (2) Current Month 554,038,819 553,280,969 553,847,157 551 ,882,000 Prior Month 557,470,022 556,524,708 557,099,175 553,618,075 (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 7/31/07. 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) vCapital Projects $256.6 General $60.6, Other $.1 Internal Service Agency $34 6 Enterprise $143.0 Total Treasurer's Investment Portfolio at Amortized Cost July 31,2007 $553.8 Million FOR CITY CLERKS USE QNL Y. COUNCIL ACTION: APPROVED JSC DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473 nsull@ci.carlsbad.ca.us PAGE 2 OF AB REPORT ON CITY INVESTMENTS AS OF JULY 31. 2007 Pooled Investment Interest Income Cash Income Fiscal Year-to-Date * Current Month FYTD 2,819,087 Prior Month FYTD 0 Current Month Income 2,819,087 *The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performance/Measurement May 2007 June 2007 July 2007 Average Life (Years) 1.93 1.87 1.86 Average Yield To Maturity 4.44% 4.47% 4.50% Modified Duration 1.751 1.686 1.681 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. 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 EXHIBIT 1 o oLJ. 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S o CO CM•t COco coCM" o"in T-co co CM co .o o inm i- 2S o r^co co oo oo> -^ o o• ~ - o !5Fr-._co" co" in co" op m opCM"1- Tfo r^ h-t oo o S 05 8 5: CO CM•^- COco_ ooCM" o"in T-oo co CM co o o inlO i-; O> p .Nco co oo o coO) Tt O O CMco in co o i^ •* o f- r>-i^ •* co oco" CD" in co"£ 3 oo 00 •tinin DCCD UJ1Q-l o o o o o o o EXHIBIT 7 CITY OF CARLSBAD Fund Equity in Pooled Investments AS OF JULY 31, 2007 Cash Balance by Fund: General 60,628,580 Special Revenue 37,845,864 Debt Service 2,005,558 Capital Projects: General Capital Construction 46,456,976 Traffic Impact Fees 11,781,381 Public Facilities Fees 51,514,959 Park Development 3,265,162 Transnet Taxes 7,942,079 Drainage Fees 10,408,467 Special Districts 88,196,338 Infrastructure Replacement 36,794,416 Other Capital Construction 3,216,971 Total 259,576,749 Enterprise: Carlsbad Municipal Water District 68,533,742 Sewer Fund 61,352,014 Solid Waste 6,638,282 Storm Water 929,968 Golf Course 5,528,151 Total 142,982,157 Internal Service 21,961,836 Agency Funds 34,634,681 Redevelopment Funds (1) 0 Misc. Special Funds 0 Total General Ledger Balance ** 559,635,425 Reconciling Adjustments (2) (5,788,269) Total Treasurer's Investment Portfolio at Amortized Cost 553,847,157 (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 8/8/07 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 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 S&P CITIGROUP AA1 AA GENERAL ELECTRIC AAA AAA BANK OF AMERICA AAA AA+ MERRILL LYNCH AA3 AA- TOYOTA AAA AAA US BANCORP AA2 AA WAL-MART AA2 AA WORLD SAVINGS BANK AA1 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 HOME DEPOT AA3 A+ 03/01/2011 06/12/2006 2,981,291 2,953,020 * 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 JULY 31,2007 WEIGHTINGS FOR CORPORATE AND FEDERAL AGENCY ISSUERS PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER Investment Cost Percent of Portfolio* BANK OF AMERICA CITIGROUP GENERAL ELECTRIC CAP HOME DEPOT MERRILL LYNCH TOYOTA US BANKCORP WAL-MART WORLD SAVINGS BANK FSB 1,983,918.00 8,961,239.70 18,476,716.50 2,974,590.00 4,884,751.43 4,054,280.00 2,952,150.09 8,189,992.98 2,999,689.80 0.36% 1.62% 3.34% 0.54% 0.88% 0.73% 0.53% 1.48% 0.54% PERCENTAGE WEIGHTINGS BY FEDERAL AGENCY ISSUER FEDERAL FARM CREDIT BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN MORTGAGE CORP FEDERAL NATIONAL MORTGAGE ASSOC HOUSING URBAN DEVELOPMENT (HUD) TVA Total Portfolio Investment Cost Percent of Portfolio** 13,943,959.60 172,787,948.01 157,390,211.65 105,796,524.89 990,198.00 2,130,980.00 * No more than 5% may be invested with a single corporate issuer. "There are no percentage limits on federal agency issuers. 2.52% 31.23% 28.45% 19.12% 0.18% 0.39% $553,280,969.26