HomeMy WebLinkAbout2010-02-16; City Council; 20123; Annual Report of Investment Portfolio FY 06/30/09CITY OF CARLSBAD - AGENDA BILL 15
20.123AB#
MTG.
DEPT. Treasury
02/16/10
ANNUAL REPORT OF INVESTMENT
PORTFOLIO
FOR YEAR ENDED JUNE 30, 2009
DEPT. HEAD
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION: Accept and file report.
ITEM EXPLANATION:
City Policy requires the City Treasurer to render an annual report of the City's investment
portfolio. This report is for the fiscal year ended June 30, 2009 (FY 08-09).
Assets in the investment portfolio totaled $567.7 million at the end of the fiscal year. The equity
portion of the various funds at the amortized value of the total portfolio is summarized below:
Fund Equity in Pooled Investments
Cash Balance by Fund:
General
Special Revenue
Debt Service
Capital Projects
Enterprise
Internal Service
Agency Funds
Reconciling Adjustments
Total Treasurer's Investment Portfolio at Amortized Cost
73,392,667
46,457,900
5,218,256
277,016,839
124,814,864
26,088,798
20,054,637
(5,338,029)
567,705,932
Fund equity balances are restricted for various purposes as listed above. This represents an
increase of $5 million from the previous fiscal year. Cash and investments comprise an
estimated 33% of the total assets reported by the City and its agencies. It is estimated that the
investment portfolio will decrease to $560 million by the end of FY09-10.
For the last month of the fiscal year, the portfolio had a return of 2.97%. For the entire fiscal
year, however, the portfolio averaged 3.7%. Cash interest income totaled $23.8 million in
FY08-09 of which approximately $2.4 million went to the General fund. For the next fiscal year
(FY09-10), it is expected that the average return for the portfolio will approximate 2.4%.
EXHIBITS:
1. City Treasurer's Annual Report of Investment Portfolio for the fiscal year ended
June 30, 2009.
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
aaa
D
a
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
aa
5& Accepted
Report
DEPARTMENT CONTACT: Nancv.Sullivan@carlsbadca.gov 760-602-2473
City Treasurer's
Annual Report of Investments
For Fiscal Year Ended June 30, 2009
TABLE OF CONTENTS
Page
Letter of Transmittal 1
Market Review FY 08-09 2
Portfolio Analysis 3
Preview FY 09-10 7
Appendices:
A: Risk Management and Disclosure 9
B: Portfolio Activities for Year Ended June 30, 2009 12
1635 Faraday Avenue, Carlsbad, CA 92008
Website: www.carlsbadca.aov
Prepared by the Treasury Department
City of Carlsbad
Office of the Treasurer
January 2010
Honorable Mayor, City Council,
And Residents of the City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
City Treasurer Letter of Transmittal
2008-2009 Annual Report of Investments
I am pleased to present the Annual Report of Investments for the City of Carlsbad for the
fiscal year ended June 30, 2009 (FY 08-09). The report is intended to provide reliable
information as a basis for reviewing portfolio performance and making management
decisions. It also provides an archival reference.
The City Treasurer is charged with the design of an effective cash management and
investment program for the City of Carlsbad and all of its agencies. Among other
activities, this includes arranging for banking services; forecasting all cash receipts and
expenditures; investing all inactive cash; managing investment risk exposures; and
reporting all investment activities.
This report summarizes and analyzes the activities of the investment portfolio for the
fiscal year. Total portfolio assets, investment portfolio relative to total city assets, source
of portfolio assets, asset allocations, yield achieved, unrealized gains and losses, and cash
revenues are presented. To give perspectives to these measurements, a summary of
movements in global and U.S. economic, as well as market interest rates are provided for
the fiscal year ended June 30, 2009. Comparisons are also made with the preceding fiscal
years. Finally, a statement is offered regarding the prospects for the fiscal year 2009-
2010.
Harold (Mac) McSherry7
City Treasurer
1635 Faraday Avenue • Carlsbad, CA 92008-7314 • (760) 602-2473 • FAX (760) 602-8556
www.ci.carlsbad.ca.us ,
CITY TREASURER
ANNUAL REPORT OF INVESTMENT PORTFOLIO
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
FYOS-09 MARKET REVIEW
Federal Funds Target Rate
FY 08-09
3.00% i2.75%
2.50%2.25%2 on%
1 .75%
1.50% -1.25%
1.00% -
0.75%
0.50% -
0.25%0.00% -
2.00%
1.50%
1.00%
| 0.25% Q.25%
«*•"• ** <t* <X
Federal flinds rate is a key money
market rate that correlates with
rates of other short term credit
arrangements. It is the interest
rate that banks charge each other
for overnight loans. In fiscal year
08-09, the Federal Reserve
reduced the federal funds rate
from 2.00% to .25%.
Changes in short-term
market interest rates are
usually affected by the
actions of the Federal
Reserve. Six-month, two
year, and five year
market rates decreased
substantially over the
course of the fiscal year.
SHORT-TERM INTEREST RATES
U.S. Treasury Instruments
Fiscal Year 2008 - 2009
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
-*-Five Year
-«• Two Year
-*-6 Month
JUL AUG SEP OCT NOV DEC J\N FEB MAR APR MAV JUIN
3.24 3.09 2.98 2.83 1.72 1.55 1.88 1.98 1.66 2.01 2.34 2.56
2.51 2.37 1.96 1.56 .90 .76 .95 .97 .80 .90 .92 1.11
1.86 1.95 1.61 .95 .33 .26 .34 .44 .42 .27 .28 .J4
YIELD CURVE
7/01/08, 12/30/08, 6/30/09
The yield curve is a
graphic presentation of
the difference between
short-term and longer-
term interest rates of
U.S. Treasury
instruments on a given
day. Financial
analysts use it to assess
the market's
expectation of
recession or inflation.
The normal shape of
the yield curve has a
moderately upward
slope, with short-term
rates lower than
longer-term rates. If the upward slope steepens, the financial markets believe inflation may
occur. An inverted yield curve is when short-term market rates are greater than longer-term
market rates. An inverted curve indicates that the financial markets expect a slower economy, if
not a recession. At fiscal year end the yield curve showed a relatively moderate upward slope.
10 Yr
-07/01/2008
— 12/31/2008
—06/30/2009
1.731
.076
.178
2.616
.760
1.109
3.327
1.549
2.555
3.969
2.212
3.533
PORTFOLIO ANALYSIS
INVESTMENT PORTFOLIO
Dollar Amount of Assets (Fiscal Year End)
$600.0
$550.0
$500.0
$450.0
$400.0
$350.0
$300.0
$250.0
$200.0
$150.0
$100.0
FY04-05 FY05-06 FY06-07 FY07-08 FY08-09
Total assets in the investment
portfolio, based on cost, stood
at $570.2 million at the end of
the fiscal year; a $7.3 million
increase. This increase
includes interest earned, loan
proceeds, and revenues in
excess of expenses.
CAS H& INVESTMENTS RELATIVE TO
TOTAL ASSETS OF CITY AND ITS AGENCIES*
FY 04-05 FY05-06
DTotal Assets
FY06-07 FY07-08 FY08-W FY09-10
• Estimate• Cash Investments J
*Source: Comprehensive Annual Financial Report - modified accmal basis.
Note: Total Assets of City and Its Agencies is an estimated amoint for FY 09 & 10
The City publishes a
Comprehensive Annual
Financial Report (CAFR) at
the end of each fiscal year.
Among other information,
CAFR presents a balance
sheet showing the total
assets owned by the City
and all its agencies. At the
end of FY 08-09, cash and
investments managed by
the City Treasurer represent
33% of all assets reported
by the City and its agencies.
SOURCE OF POOL ASSETS
(Dollar Amounts in JVIillions)
6/3O/O8
Special & Other$65.0Oeneral
$69.0
$25.7
Agency & Int
EnterpriseN/'
$127.7
Total Investments - $562.4 Million
C'apital
275
6/3O/09
Oeneral Special & Other* 73.3^-' A S 46.4
$ 46.2 ^^^vAAgency & Interr
Knterprise
$124.8
"apital
$277
Total Investments - $567.7 Million
The portfolio is an internal investment pool calculated that uses the inactive cash from the
various funds of all City agencies, including the City, the Water District, and the Redevelopment
Agency. The top three sources of portfolio assets calculated at amortized costs are the Capital
Projects fund 49%, the Enterprise fund 22%, and the General fund 13%. Together, these three
funds account for 84% of total portfolio assets.
Investments are made in financial instruments authorized by the City's Investment Policy and the
California State Government Code. With the exception of bank deposits and deposits in the
California State Local Agency Investment Fund (LAIF), all investments are in fixed-income
instruments with known maturity dates.
ASSET ALLOCATION
(Dollar Amounts in Millions)
6/30/08 6/30/09
Corporate
$879LAIF/Cash
$72.3
Federal Ag
$ 402.7
Total $562,862,745
a LAIF/Cash
a Federal Agency
LAIF/Cash
$54.6
US Treasury
$81.7
Corporate
$116.3
Federal Agency
$317.6
On June 30, 2009, 56% of
portfolio assets were
invested in federal agencies,
20% in corporate notes, 14%
in US Treasuries and 10% in
LAIF and cash. The
allocation of assets to
federal agencies and LAIF
decreased while the
allocation to US Treasuries
and corporate notes
increased from the previous
year. Within the asset
category of federal
treasuries and agencies,
investments in Treasuries,
Federal Home Loan Bank,
the Federal Home Loan Mortgage Corporation*, the Federal National Mortgage Association*,
and the Federal Farm Credit Bank, constituted 14%, 27.5%, 10%, 7%, and 7% of the total,
respectively. Federal agencies are creations of the U. S. Congress and include agencies and
government-sponsored enterprises.
* (in conservatorship by Federal Housing Financing Agency)
Total $570,194,074
• Corporate
6 - [Perc'en
5
4
3 '
2 ^.--
1 r
FY03-04
PORTFOLIO YIELDS
With 6 Month T-Bill Yields
tj
, . - - *v^ — ^-. — •- ^ '
'"' '"••^•"'
FY04-05 FY05-06 FY06-07 FY07-08
FY03-04 FY04-05 FY05-06 FY06-07 FY07-08
i -^-Portfolio ] 3.43 3.55 3.98 4.37 4.45
-.-T-Bill J 1.11 2.59 4.45 5.06 2.93
-~--«
^
* "»
FY08-09
FY08-09
3.72
.75
The average return of the portfolio
decreased to 3.72% from 4.45%
the year before. The portfolio
yield is heavily influenced by
changes in short-term market
interest rates since 23% of total
investments were required to
mature within one year. The
average interest rate for six-month
U.S. Treasury Bills decreased to
.75% from 2.93% the previous
year.
This graph shows the percent change in value of the portfolio over the last several years.
Investments gain and lose value subsequent to purchase because of changes in market interest
rates. When market interest rates decrease, investments made earlier at higher rates will gain
value. The reverse is true when market interest rates increase. Accountants refer to these
changes in value as unrealized gains and unrealized losses; commonly referred to as paper gains
and paper losses. The gain/loss is not recognized until the investment is sold. Changes in value
caused by changes in market interest rates are normal and are expected.
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
-0.50%
-1.00%
-1.50%
-2.00%
-2.50%
Historical Unrealized Gains/Losses
as Percent of Amortized Cost
July 2003 - June 2009
With a buy and hold policy, an objective of the City's Investment Policy is to achieve an average
market rate of return over the economic cycle. The success in achieving this objective can be
approximated with having unrealized gains and losses that are relatively equal over time.
Tracking and measuring unrealized gains and losses could also reveal any presence of high-risk
investments in the portfolio. The changes in asset values shown in the graph indicate that
portfolio investments are within the acceptable interest rate risk identified in the City's
Investment Policy.
The total portfolio had a slight unrealized gain of 1.5% on June 30, 2009. If interest rates remain
stable, unrealized gains and losses will remain near the 0.00%. However, a downward trend will
continue if rates increase or when current investments with higher interest rates are called and
reinvested at today's significantly lower market rates.
6
Cash income from portfolio investments
represents an annuity stream of revenues
from the Treasury. This annuity stream
totaled $23.8 million, a decrease of $2.2
million from the previous fiscal year. Of
the total cash interest revenues earned by
the portfolio, approximately $2.4 million
was credited to the General fund. Cash
income is a function of assets in the
portfolio, the market interest rates at the
time of the investments, and the interest
payment schedules of the issues.
ANNUITY STREAM FROM TREASURY
(Cash Interest Revenue)
For Fiscal Years Indicated
FY04-05 FY05-06 FY06-07 FY07-08 FY08-09
FY 09-10 PREVIEW
National and international economic forces are the primary influences on U.S. market interest
rates.
Global Economy
The global economy experienced a very sharp decline earlier this year. The North and South
American, European, and emerging economies slowed significantly. The International Monetary
Fund forecast global growth to increase from 1.4% to 2.5% percent this year. The Organization
for Economic Co-operation and Development forecasts 2010 growth at 1.9% and 2011 growth at
2.5% with the recovery led by China. China, India and Russia, the fastest growing Asian
economies last year, slowed significantly during the spring of 2009, but are currently
accelerating. The United States economy contracted about 2.5% in the first half of 2009, and is
estimated to grow between 2.1% and 3.0% in 2010. Emerging market economies will grow
faster than industrialized economies.
Core inflation globally is nearly 1.3%, emerging nations about 1.0%, and the United States is
currently negative at -.2%. Massive debt spending in the U.S., Europe, and Asia; a weaker
dollar, rising food and fluctuating oil prices are contributing to heightened inflation concerns.
High unemployment, under employment and lower capacity utilization are signs of slower
economic growth and counterbalance inflation concerns. Food and medical costs continue to
increase resulting in less disposable income for the consumer. Less developed countries
experienced cuts in world food subsidies while developed nations increased food subsidies to
their own citizens.
U.S. Economy
The U.S. appears to have reached the bottom of this recession. The federal stimulus and Federal
Reserve actions, many unprecedented, have created a recovery during the second half of 2009
and will likely continue the first two quarters of 2010. Continued recovery through 2010 is
questionable. Should the economy slip back into recession, local governments will be severely
burdened. Another stimulus from the Federal government may be required, increasing burdens'
on the national debt and taxpayers. This uncertainty will cause the Federal Reserve to maintain
the current low federal funds rate through June 2010. The high unemployment and flat economy
will decrease government tax revenues with continued increases in Congressional spending. The
result is increased borrowing by the U.S. (and Europe) at higher rates of interest. The U.S.
Treasury may have to pay higher interest rates even if the economy stagnates. If the economy
significantly improves in 2010, long term interest rates will rise faster than short term rates.
City of Carlsbad
Approximately $194 million of investments with fixed maturity dates will mature in FY 09-10.
An additional $66 million will likely be called due to current low interest rates. Available
proceeds from these investments will be reinvested at market rates lower than the maturing and
called investments resulting in less revenue to the City. Revenue from our LAIF investments
will further decrease as its interest yields decline. The City's investments in LAIF are being
reduced. I believe LAIF has an increased risk exposure. The State of California may change
current law and borrow LAIF's monies to solve its own fiscal crisis.
At the end of FY 08-09, LAIF investments had a yield of 1.5%, and all other investments had a
yield of 3.0%. I anticipate LAIF investment yield will decrease to .45% by the end of this fiscal
year. Revenues on investments other than LAIF will decrease significantly due to unprecedented
low interest rates.
On June 30, 2009 the yield of the total portfolio averaged 3.7%. In fiscal year ending June 30,
2010, the total portfolio is projected to have an average yield of 2.4%.
Total assets in the investment portfolio stood at $570 million at the end of FY 08-09. I anticipate
an $11 million portfolio decrease in FY 09-10 excluding unforeseen and unplanned loans the
State of California may mandate. Interest revenue earned from portfolio investments will
approximate $18.0 million. In FY 09-10, interest income will continue to decline; property tax
revenues; sales tax and transient occupancy tax revenues are projected to decrease by 6%, 13%
and 11% respectively. The Carlsbad economy is fragile at this time with revenue streams
difficult to predict. Continued caution is prudent.
8
APPENDICES TO ANNUAL REPORT OF INVESTMENT PORTFOLIO
APPENDIX A: RISK MANAGEMENT AND DISCLOSURE
All investments are exposed to risk of some type. The objective of risk management is to
identify the risks involved and establish acceptable levels of risks that are consistent with the
City's investment objectives. Risk management includes managing, measuring, monitoring, and
reporting the various risks to which portfolio investments are exposed.
Portfolio investments are exposed to the following types of risks:
A. Credit risk.
a. Custodial credit risk.
a) Investments.
b) Deposits. •
b. Default credit risk.
c. Concentration credit risk.
B. Interest rate risk.
C. Event Risk.
As of June 30, 2009, the portfolio had the following investments and cash in its internal
investment pool.
Market Value
Investment Maturities Market Value Gain (Loss)
U. S. agencies July 2009 - May 2014 $403,796,000 $6,460,000
Corporate Notes July 2009-May 2014 117,185,000 1,415,000
Certif. of Deposit July 2009-March 2010 33,000
LAIF 52,612,000 69,000
Sweep accounts 1,328,000
Cash accounts 696.000 -
Total $575,650,000 $7,944,000
Disclosures
Custodial Credit Risk (Investments). The City uses a third party custody and safekeeping
service for its investment securities. The Union Bank of California (UBC) is under contract to
provide these custodial services. Custodial credit risk is the risk that the City will not be able to
recover the value of its investments in the event of a UBC failure. All City investments held in
custody and safekeeping by UBC are held in the name of the City and are segregated from
securities owned by the bank. This is the lowest level of custodial credit risk exposure.
Custodial Credit Risk (Deposits). The City maintains cash accounts at Wells Fargo Bank
(WFB) and UBC. At the conclusion of each business day, balances in these accounts are
"swept" into overnight investments. These overnight investments are pooled and collateralized
with either U. S. government securities or U. S. agency securities. The California Code
authorizes this type of investment. A small amount of cash is not swept from the WFB checking
accounts to cover checks that may be presented for payment. Amounts up to $250,000 are FDIC
insured.
Default Credit Risk. Default credit risk is the risk that the issuer of the security does not pay
either the interest or the principal when due. The debts of most U. S. agencies are not backed by
the full faith and credit of the federal government; however, because the agencies are U. S.
Government-sponsored, they carry AAA credit ratings. The default credit risk of these
investments is minimal.
Unless otherwise exempted, California state code limits investments to the top three credit
ratings (AAA, AA, and A). It is the City's policy, however, to limit investments to the top two
credit ratings (AAA and AA). As of June 30, 2009, ten investments in corporate notes had a
credit rating below the AA limit. These investments were made when the credit rating were
either AAA or AA. California state code and the City's Investment Policy allow the City
Treasurer to determine the course of action to correct exceptions to the Policy. It is the intent of
the City Treasurer to hold these investments in the portfolio until maturity unless events indicate
a sale should be made. The default credit risk for corporate notes with a credit rating of single A
is higher than U.S. Treasuries, federal agencies or LAIF, but is considered by the City Treasurer
to be within acceptable limits for purposes of holding to maturity.
The Local Agency Investment Fund (LAIF) is an investment pool managed by the California
State Treasurer. Its investments are short-term and follow the investment requirements of the
State. As of June 30, 2009, the average maturity of the LAIF investments was 235 days. The
State Treasurer is not required to contract for a credit rating to be assessed for LAIF. California
state code section 16429.3 excludes LAIF deposits from being transferred, loaned, impounded or
seized by any state agency or official.
10
Concentration Credit Risk. Concentration credit risk is the heightened risk of potential loss
when investments are concentrated in one issuer. The California state code does not identify a
specific percentage that indicates when concentration risk is present for any one issuer. The state
code does, however, require that total investments in medium-term corporate notes of all issuers
not exceed 30% of the portfolio. As of June 30, 2009, approximately 20% of the City's total
portfolio investments were in medium-term corporate notes.
For concentration of investments in any one issuer, the City's Investment Policy requires that no
more than 5% of investments in corporate notes be in any one issuer. There is no similar
requirement in either the state code or the City's Investment Policy for U. S. agencies. As of
June 30, 2009, no investments in any one corporate issuer exceeded 5% of total portfolio
investments.
Interest Rate Risk. Interest rate risk is the risk that investments will lose market value
because of increases in market interest rates. A rise in market interest rates will cause the market
value of investments made earlier at lower interest rates to lose value. The reverse will cause a
gain in market value. As of June 30, 2009, the portfolio had a 1.0% gain in market value.
The City's investment policy has adopted two means of limiting its exposure to market value
losses caused by rising market interest rates: (1) Limiting total portfolio investments to a
maximum modified duration of 2.2, and (2) requiring maturing investments within one year be
equal to an amount that is not less than 2/3 of the current operating budget ($195,180,000). As
of June 30, 2009, the modified duration of the portfolio was 1.478, within the required maximum
of 2.2. Investments maturing within one year were $250,595,000, exceeding the required
minimum of $130,120,000. The City's exposure to interest rate risk is within acceptable limits.
Event Risk. Event risks include the chance that something unexpected will impede the ability
of an issuer of a security to meet its obligations. These types of risks are usually short in
duration, but can impair the city's ability to communicate with or use banking services. Such an
event could cause a delay in collecting securities which have matured. Security risks are also
within this category.
11
APPENDIX B: PORTFOLIO ACTIVITIES FOR FISCAL YEAR ENDED JUNE 30, 2009
The City's portfolio balance increased 1.3% from $562.9 million to $570.2 million in fiscal year
2008-09. The increase of $7.3 million does little to show the volume of cash that flows in and
out of the portfolio in the course of one fiscal year. The following table illustrates that the City
Treasurer managed over two billion dollars of cash inflows and cash outflows which prompted
investment decisions during fiscal year 2008-09.
Cash Flows:
Bond Maturities $ 93,711,000
Bond Calls 139,916,000
Bond Sales
LAIF Withdrawals 271,064,000
Sweep Withdrawals 562,914,000
Interest Income 23,858,000
Bond Purchases 261,119,000
LAIF Investments 253,562,000
Sweep Investments 560,674,000
Cash Investments (net) 31,000
Total $2.166.849.000
12
CITY TREASURER’S
ANNUAL REPORT OF
INVESTMENTS
Fiscal Year Ended 6/30/09
(FY 08-09)
U.S.
MARKET REVIEW
Fiscal Year Ended 6/30/09
Federal Funds Target Rate
FY 08-09
2.00%
1.50%
1.00%
0.25%
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
3.00%
0.25%
SHORT-TERM INTEREST RATES
U.S. Treasury Instruments
Fiscal Year 2008 -2009
0.000.501.001.502.002.503.003.504.004.505.005.50
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
Five Year
Two Year
6 Month
Percent
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
3.24 3.09 2.98 2.83 1.72 1.55 1.88 1.98 1.66 2.01 2.34 2.56
2.51 2.37 1.96 1.56 .90 .76 .95 .97 .80 .90 .92 1.11
1.86 1.95 1.61 .95 .33 .26 .34 .44 .42 .27 .28 .34
YIELD CURVE
7/01/08, 12/31/08, 6/30/09
Market Rates
00.511.522.533.544.555.56
3 Mth 2 Yr 5 Yr 10 Yr
07/01/2008
12/31/2008
06/30/2009
3 Mth 2 Yr 5 Yr 10 Yr
1.731 2.616 3.327 3.969
.076 .076 1.549 2.212
.178 1.109 2.555 3.533
PORTFOLIO REVIEW
INVESTMENT PORTFOLIO
Dollar Amount of Assets (Fiscal Year End)
$472.6 $512.0 $516.9
$556.5 $562.9 $570.2
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
$500.0
$550.0
$600.0
FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09
Millions
CASH & INVESTMENTS RELATIVE TO
TOTAL ASSETS OF CITY AND ITS AGENCIES*
$382 $390 $428 $468 $511 $503 $552 $561 $573 $560
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
FY00-01 FY01-02 FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09 FY09-10
Cash/Investments Total Assets
$1,730
$716
*Source: Comprehensive Annual Financial Report. Note: Total Assets of City and Its Agencies is an estimated amount for FY 09 & 10
$1,122
$1,548 $1,662
Estimate
$ Millions
$1,415
$1,712
$992$899
$789
Major Capital Project Expenditures
FY 2008-2009
•Streets
Poinsettia $ 1,553,000
Rancho Santa Fe Road 1,768,000
Pavement Management 2,503,000
Traffic Signals and Other 3,596,000
•Recycled Water
N. Agua Hedionda Interceptor 2,695,000
Vista/Carlsbad Interceptor 1,070,000
Other 1,847,000
•Water Distributions 1,880,000
•Encina Water Pollution Control 1,434,000
•1st Repsponder Training Facility 1,191,000
SOURCE OF POOL ASSETS
(Dollar Amounts in Millions)
$69.0 $65.0
$ 275
$25.7
6/30/08
General Special & Other Capital Projects Enterprise Agency/Internal
Total Investments -$562.4 Million
$ 73.3 $ 46.4
$277
$124.8
$ 46.2
6/30/09
Total Investments -$567.7 Million
$127.7
General Special & Other
Capital
Enterprise
Agency & Internal
General Special & Other
Capital
Enterprise
Agency & Internal
ANNUITY STREAM FROM TREASURY
(Cash Interest Revenue)
For Fiscal Years Indicated
$18.37
$15.23 $15.68
$17.84
$21.76
$26.04
$23.80
$0.00
$3.00
$6.00
$9.00
$12.00
$15.00
$18.00
$21.00
$24.00
$27.00
FY02-03 FY03-04 FY04-05 FY05-06 FY06-07 FY07-08 FY08-09
Millions
FY 09-10 PREDICTIONS
•Short-term interest rates will
decrease slightly
•Yield curve will steepen
•Average yield of portfolio for FY will
be in 2.40% range (from 3.72%)
•Investment portfolio will decrease to
$560 million
To Access Monthly and Annual
Investment Reports
•Go to: www.ci.carlsbad.ca.us
•Click on: City Hall
•Click On: City Treasurer
Questions
Mac McSherry
City Treasurer