HomeMy WebLinkAbout2023-12-05; City Council; ; Annual Report of Investments for Fiscal Year 2022-23CA Review JRT
Meeting Date: Dec. 5, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Craig Lindholm, City Treasurer
craig.lindholm@carlsbadca.gov, 442-339-2473
Subject: Annual Report of Investments for Fiscal Year 2022-23
Districts: All
Recommended Action
Accept and file Annual Report of Investments for Fiscal Year 2022-23.
Executive Summary
The City Treasurer reports annually to the City Council and the community on the city’s
investment portfolio as mandated by the city’s Investment Policy. The Annual Report of
Investments (Exhibit 1) presents a discussion on the global and domestic financial environment,
the market position that affects the city’s investment strategy, portfolio standings and various
portfolio analyses for the fiscal year 2022-23.
Explanation & Fiscal Analysis
The City Treasurer is tasked with overseeing cash and investment activities for the city and its
agencies by managing the funds in excess of day-to-day operating needs. City investments are
pooled and invested to meet the treasury’s objectives of maintaining safety of principal,
maintaining liquidity to meet the operating requirements of the city, and realizing the greatest
return on investment.
The foremost objective is safety, the preservation of city capital. The City Treasurer makes
prudent investment decisions that are intended to protect the capital of the city for its
residents. All investments are made within the scope of the city’s investment policy, and
current investment details are provided monthly for full transparency and review.
The two basic measures of an investment are par value, its face value, also known as the
nominal value; and the book value, the value that is entered in the city records, which is driven
by interest earned, loan payments received and revenues in excess of expenses.
•The city’s investment portfolio increased $27.6 million in par value from the previous
fiscal year.
•The book value increased $22.5 million from the previous fiscal year.
Dec. 5, 2023 Item #1 Page 1 of 40
Second to safety is liquidity. The City Treasurer monitors and maintains the portfolio below the
maximum maturity limits and the maximum modified duration limits in the city’s investment
policy. (Modified duration reflects the price sensitivity to changes in interest rates.) The
maximum maturity limit is calculated to be cash and maturities equal to at least two-thirds of
the approved operating budget. Under the city’s investment policy, the city does not hold
securities for more than five years.
The report shows:
• During the fiscal year, the treasurer monitored and maintained not less than
$318.9 million in investments maturing within one year, as well as the
investments maturing within five years.
• The modified duration was 1.55 as of the close of the fiscal year, well below the
maximum allowed duration of 2.2. The City Treasurer remained within the limits
of the modified duration restrictions throughout the year. This maintains
liquidity to ensure that operational needs will be met and avoids circumstances
that could result in selling at a loss.
Once safety and liquidity objectives have been met, the City Treasurer aims to realize a return
on investments. As the report details:
• Fiscal year 2022-23 started off with a monthly portfolio yield of 1.37% and ended
the year with a portfolio yield of 2.22%, for an average yield of 1.86%.
• The market value of the investment portfolio increased $9.4 million in the last
fiscal year.
Gains in market value are governed by judicious investment decisions focusing on current
market rates and anticipated future rates.
The investment portfolio increased 3.26% in par value over the fiscal year. Intentionally, the
value of investment maturities and calls – when the holder of a security calls back the loan
before it matures – outweighed investment purchases during the fiscal year yielding a net
decrease in investments by 4.68%. The resulting cash was reinvested in overnight pooled cash
to take advantage of a steep increase in short-term investment rates to earn a higher return.
This strategy resulted in an increase in interest earnings of 34.2% over the previous fiscal year,
which represents over $4 million in revenue.
More detailed information can be found in the report attached as Exhibit 1.
Next Steps
The City Treasurer will continue to manage the investment program for the city and all of its
agencies, including the Carlsbad Municipal Water District and continue to produce monthly and
annual reports on city investments for the City Council and the community.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project
within the meaning of the California Environmental Quality Act under California Public
Resources Code Section 21065 in that it has no potential to cause either a direct physical
change or a reasonably foreseeable indirect physical change in the environment.
Dec. 5, 2023 Item #1 Page 2 of 40
Exhibits
1. Annual Report of Investments for the Fiscal Year Ended June 30, 2023
Dec. 5, 2023 Item #1 Page 3 of 40
1
Exhibit 1
Dec. 5, 2023 Item #1 Page 4 of 40
2
CITY
TRESURER
ANNUAL
REPORT OF
INVESTMENTS
REPORT
FISCAL YEAR 2022-23
CRAIG LINDHOLM
CITY TREASURER
DEC. 5, 2023
Dec. 5, 2023 Item #1 Page 5 of 40
(city of
Carlsbad
3
TABLE OF CONTENTS
INTRODUCTION
City Treasurer letter of transmittal ......................................................................5
Fiscal year 2022-23 quick look .............................................................................6
MARKET REVIEW
Federal funds target rate .....................................................................................8
Short-term interest rates .....................................................................................10
Market yield curve ...............................................................................................11
PORTFOLIO OVERVIEW
Portfolio total assets ............................................................................................13 Sources of portfolio .............................................................................................15 Allocation of portfolio ..........................................................................................16
PORTFOLIO ANALYSIS
Portfolio yield .......................................................................................................19
Maturity & modified duration .............................................................................22
Interest income ....................................................................................................24
APPENDICES
Risk management disclosures ..............................................................................27
Data tables ...........................................................................................................30
Additional resources ............................................................................................37
Dec. 5, 2023 Item #1 Page 6 of 40
4
INTRODUCTION
Dec. 5, 2023 Item #1 Page 7 of 40
{_city of
Carlsbad
5
CITY TREASURER LETTER OF TRANSMITTAL
Fiscal Year 2022-23 Annual Report of Investments
Dec. 05, 2023
Honorable Mayor, City Council and residents of the City of Carlsbad,
I am pleased to present the Annual Report of Investments for the City of Carlsbad for
the fiscal year 2022-23 which ended June 30, 2023. The report is intended to provide
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 its agencies. Among other activities,
this includes arranging banking services, forecasting all cash receipts and expenditures,
investing inactive cash, managing investment risk exposures and reporting all
investment activities.
This report summarizes and analyzes the activities of the investment portfolio over fiscal
year 2022-23. This report begins with a quick overview and summary of key annual data.
The second section, market review, provides an overview of the market environment
affecting portfolio management decisions, and includes Federal Funds target rate and
U.S. Treasury short-term interest rates data. The third section, portfolio review, looks at
the composition of the portfolio including total assets and the trend regarding size of
the fund, fund sources of the portfolio and the portfolio allocation. The fourth section,
portfolio analysis, includes yield information and comparisons to treasury rates,
unrealized gains and losses, cash income, maturity data and modified duration. The final
section, appendices, provides disclosures, data tables and additional information. Future
fund activity depends on the market environment for investing decisions and
anticipated returns for each investment classification. These factors are watched for
trends and evaluated prior to all investing decisions.
Sincerely,
Craig J. Lindholm,
City Treasurer
Dec. 5, 2023 Item #1 Page 8 of 40
6
FISCAL YEAR 2022-23 QUICK LOOK
Market review
• Federal funds target rate:
5.25%; fiscal year increase
of 3.50%
• Two-year U.S. Treasury:
4.87%; fiscal year increase
of 2.03%
Portfolio overview
• Total portfolio value at par
value: $874,350,106
• Total portfolio fiscal year
increase: $27,576,773
• Federal Agencies represent
37.9% of all investments
Portfolio analysis
• Portfolio yield as of
06/30/23: 2.22%
• Portfolio interest for the
fiscal year: $16,168,150
• Average maturity as of
06/30/23: 1.73 years
3.005.007.00
Three-
month
Two-
year
Five-
year
Ten-
yearIn
t
e
r
e
s
t
r
a
t
e
(
%
)
Maturity
Market yield curve
06/30/23
760
810
860
910
Par value Market
value
Book valueAs
s
e
t
v
a
l
u
e
(
$
m
i
l
l
i
o
n
s
)
Total portfolio valuation
06/30/23
0.00
0.50
1.00
1.50
2.00
2.50
Jul Sep Nov Jan Mar May
Yi
e
l
d
(
%
)
Portfolio yield
Fiscal year 2022-23
Dec. 5, 2023 Item #1 Page 9 of 40
7
MARKET REVIEW
Dec. 5, 2023 Item #1 Page 10 of 40
(city of
Carlsbad
8
FEDERAL FUNDS TARGET RATE
The federal funds target rate is considered one of the most important interest rates in
the U.S. economy. It 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 and influences many aspects of the U.S. economy.
The rate is represented as a range, which is set by the Federal Open Market Committee
eight times per year. The Federal Open Market Committee specifies the short-term
objective for the purchase and sale of securities in the open market.
The rate is adjusted in response to economic conditions and in response to factors such
as inflation or recession environments. The Federal Reserve began raising rates in 2022
and has continued to raise rates throughout 2023 to slow the rate of inflation.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Ra
t
e
(
%
)
Federal funds rate changes
Fiscal year 2022-2023
Dec. 5, 2023 Item #1 Page 11 of 40
9
Between 2013 and 2015, rates held at 0.25% to support economic growth following the
2008 recession. As the economy continued to grow, the rate was increased to stabilize
the growth rate. Rates lowered in 2020 and 2021 as a result of the COVID-19 pandemic,
but with inflation on the rise since 2022, rates have been steadily increasing over the
fiscal year.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Ra
t
e
(
%
)
Federal funds rate
Fiscal year 2022-23 and prior nine years
Dec. 5, 2023 Item #1 Page 12 of 40
10
SHORT-TERM INTEREST RATES
The rates for U.S. Treasury bonds are important to all investors, but especially to bond
investors. These bonds are issued by the Department of the Treasury and are an
indicator as to how the U.S. government predicts inflation and the overall economy to
move. Changes in short-term market interest rates are usually affected by the actions of
the Federal Reserve.
Short-term interest rates in the three exhibited trends of five-year market, two-year
market, and six-month market had substantial increases during the fiscal year,
measured from July 1, 2022 to June 30, 2023:
• Six-month: increase of 2.95%, from 2.52% to 5.47%
• Two-year: increase of 2.03%, from 2.84% to 4.87%
• Five-year: increase of 1.25%, from 2.88% to 4.13%
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Pe
r
c
e
n
t
a
g
e
r
a
t
e
(
%
)
Short-term interest rates of U.S. Treasuries
Fiscal year 2022-23
Six-month Two-year Five-year
Dec. 5, 2023 Item #1 Page 13 of 40
'V' <7 0
11
MARKET YIELD CURVE
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, among other things, assess likely changes in inflation levels as well as the
likelihood of entering into an economic recession.
Yield curves:
• Normal: implies economic expansion
• Inverted: implies economic reduction
• Flat: implies transition in the economic environment
The current fiscal year is showing an inverted yield curve, expressing that yield increases
as maturity decreases. In other words, short-term investments are offering higher
yields. This may be an indication of movement from short-term to long-term
investments, implying an effort to hedge against fear of an economic recession.
The City Treasurer maintains a mixture of liquid assets and longer-term investments
which allows benefits of higher short-term interest rates and security against economic
uncertainty.
-
1.00
2.00
3.00
4.00
5.00
6.00
3-month 2-year 5-year 10-year
In
t
e
r
e
s
t
R
a
t
e
(
%
)
U.S. Treasury rates
Market yield curve
Fiscal year 2022-23 and two prior fiscal years
06/30/21 06/30/22 06/30/23
Dec. 5, 2023 Item #1 Page 14 of 40
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12
PORTFOLIO REVIEW
Dec. 5, 2023 Item #1 Page 15 of 40
(city of
Carlsbad
13
PORTFOLIO TOTAL ASSETS
Assets are invested by the City Treasurer with the objectives of maintaining safety of
principal, maintaining liquidity to meet the operating requirements of the city, and
realizing the best return on investment. Safety of principal is the foremost objective of
all investments made by the City Treasurer.
By pooling assets and investing a laddered portfolio, the city can ensure funds are
available to meet obligations while earning the highest possible amount of interest.
Total assets in the investment portfolio
• Par value: $874,350,106, increase of 3.26% over prior year.
• Market value: $830,832,607, increase of 1.14% over prior year.
• Book value: $874,704,150, increase of 2.64% over prior year.
The portfolio is constantly fluctuating. Safety of capital is the first and foremost
investing principal, but small increases and decreases are normal and expected. These
fluctuations occur as a normal part of operations.
Causes of portfolio increases:
• Interest earned
• Revenues in excess of expenses
Causes of portfolio decreases:
• Interest incurred
• Expenses in excess of revenues
790
800
810
820
830
840
850
860
870
880
Par value Market value Book value
As
s
e
t
v
a
l
u
e
(
$
m
i
l
l
i
o
n
s
)
Portfolio ending balance comparison by valuation method
Fiscal year 2022-23 and prior year
Current year Prior year
Dec. 5, 2023 Item #1 Page 16 of 40
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14
Key portfolio changes at par value during fiscal year 2022-23:
• Maturities: $132,122,591
• Calls: $3,000,000
• Buys: $100,100,999
The City Treasurer is responsible for maintaining the city’s operational cash flow needs
while ensuring that excess funds are being invested in the safest and most effective
manner year after year.
Total portfolio value has increased year after year. The last ten years have seen an
increase of 32.83%. This represents a cash value of $216,122,632. This total increase is a
result of thoughtful and prudent investment decisions. All funds in excess of expenses
are reinvested while maintaining the liquidity required for city operations, present and
future.
-
100
200
300
400
500
600
700
800
900
1,000
As
s
e
t
v
a
l
u
e
(
$
m
i
l
l
i
o
n
s
)
Total portfolio value at amortized cost
Fiscal year 2022-23 and prior nine years
Dec. 5, 2023 Item #1 Page 17 of 40
15
SOURCES OF PORTFOLIO
The portfolio is an internal investment pool that invests the available cash from various
funds of all city agencies, city owned and fiduciary assets.
The capital project fund includes funds for the general capital construction, traffic
impact fees, public facilities fees, park development, certain taxes, drainage fees, special
districts, infrastructure replacement, and gas tax funds. Enterprise funds consist of the
Carlsbad Municipal Water District, wastewater, solid waste, storm water, and golf
course funds.
General,
$185
Capital Projects,
$376
Enterprise,
$204
Fiduciary & Internal,
$75
Special & Other,
$34
Source of funds at amorized cost
June 30, 2023 (millions)
Dec. 5, 2023 Item #1 Page 18 of 40
16
ALLOCATION OF PORTFOLIO
Investments are made in financial instruments as authorized by the City of Carlsbad
Investment Policy and the California Government Code. Apart from bank deposits,
deposits in the California state Local Agency Investment Fund (LAIF) and California Asset
Management Program (CAMP), all investments are in fixed-income instruments with
known maturity dates.
Federal agencies make up 37.93% of the total investment portfolio. Provided below is
the breakout of issuers within the federal agency category as of June 30, 2023:
Federal agency breakdown by percentage of total portfolio at par value
Federal Farm Credit Bank 11.34%
Federal Home Loan Bank 13.93%
Federal Home Loan Mortgage Corporation 5.39%
Federal National Mortgage Association 4.51%
Federal Agricultural Mortgage Corporation 2.65%
Tennessee Valley Authority 0.11%
Total 37.93%
Federal Agencies
37.9%
Supra-nationals
2.2%US Treasury
9.0%
Coporate Notes
18.0%
Cert. of Deposit
2.4%
Mortgage-Backed
4.1%
Municipal Bonds
8.0%
Cash & Pooled
18.4%
Allocation of investments at par value
June 30, 2023
Dec. 5, 2023 Item #1 Page 19 of 40
17
Fiscal year 2022-23 net changes
Changes in investments are a result of multiple factors including maturities, calls, and
new investments. The data is represented at par value and does not reflect fluctuations
of the market value because, in conjunction with the liquidity principal, the city
maintains a ‘buy and hold’ perspective. This means that the city does not sell
investments in the normal course of operations and instead holds the investments to
maturity. The benefit of this policy is that investments will not be sold at a loss and the
full par value will be returned.
Certain investment types are restricted by the City of Carlsbad Investment Policy, for the
purpose of balanced allocation. All investments are well under the policy limitations
allowing for continued purchases of the best-fit investments.
-35.00
-25.00
-15.00
-5.00
5.00
15.00
25.00
Federal
Agencies
Supra-
nationals
U.S.
Treasury
Coporate
Notes
Cert. of
Deposit
Mortgage
-Backed
Municipal
Bonds
% Change 2.50 (30.42)(8.93)(21.24)(1.42)24.25 14.56
Pe
r
c
e
n
t
a
g
e
c
h
a
n
g
e
(
%
)
Percent value change by investment class
0.00 5.00 10.00 15.00 20.00 25.00 30.00
Supranational
Corporate Notes
Cert. of Deposit
Mortgage-Backed
Municipal Bonds
Percentage of portfolio (%)
Policy limits and portfolio allocation as of June 30, 2023
Policy Portfolio
Dec. 5, 2023 Item #1 Page 20 of 40
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18
PORTFOLIO ANALYSIS
Dec. 5, 2023 Item #1 Page 21 of 40
(city of
Carlsbad
19
PORTFOLIO YIELD
The average return of the portfolio increased 0.94 percentage points during the current
fiscal year from 1.28% for fiscal year 2021-22 to 2.22% for fiscal year 2022-23.
1.25
1.35
1.45
1.55
1.65
1.75
1.85
1.95
2.05
2.15
2.25
Po
r
t
f
o
l
i
o
y
i
e
l
d
(
%
)
Portfolio yield by month
Fiscal year 2022-23
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Po
r
t
f
o
l
i
o
y
i
e
l
d
(
%
)
Portfolio yield
Fiscal year 2022-23 and prior nine years
Dec. 5, 2023 Item #1 Page 22 of 40
20
The current year has shown a portfolio yield increase of 0.94%, and a ten-year increase
of 1.08%. By keeping a vigilant watch on the current market trends, the City Treasurer
makes the most opportune investment decisions to first and foremost protect the city’s
assets, and then to maximize the return on capital.
As compared to U.S. Treasury rates, the portfolio yield shows stabilization. The portfolio
yield is influenced by changes in market interest rates. By investing in a variety of
maturity dates, a variety of investment types and following a buy and hold policy, the
effect of the sometimes dramatic changes in market rates has a less dramatic effect on
the city’s portfolio.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
In
t
e
r
e
s
t
r
a
t
e
(
%
)
Portfolio rate with six-month, two-year, and five-year
U.S. Treasury rates
Fiscal year 2022-23 and prior nine years
Treasury - 6 month Treasury - 2 year Treasury - 5 year Portfolio
Dec. 5, 2023 Item #1 Page 23 of 40
-
21
Investments experience market value gains and losses subsequent to purchase because
of changes in market interest rates. When market interest rates decrease, investments
made previously at higher rates will gain value. The reverse is true when market interest
rates increase. These changes in value are referred to as unrealized gains and unrealized
losses.
Changes in value due to changes in market interest rates are normal and are to be
expected. Reporting requires that the city recognizes the market value of investments
on an annual basis, however, the city’s buy and hold policy safeguards against market
volatility.
-7.00
-6.00
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
Pe
r
c
e
n
t
o
f
A
m
o
r
t
i
z
e
d
C
o
s
t
(
%
)
Historical unrealized gains and losses
Fiscal year 2022-2023 and nine prior years
Dec. 5, 2023 Item #1 Page 24 of 40
T
22
MATURITY & MODIFIED DURATION
The second objective in the City Treasurer’s investing strategy is liquidity. The purpose
of liquidity is ensuring adequate cash is available to fund city operations. In order to
maintain liquidity, the measurement of modified duration is used.
The maximum term for investments is five years. This graph shows how maturity is
distributed as of June 30, 2023. 38.38% of the portfolio is maturing within 12 months
and includes overnight pooled cash accounts. Policy dictates that a minimum of two-
thirds the operating budget be maturing within 12 months. As of June 30, 2023, 92.1%
of the fiscal year 2022-23 budget is maturing within 12 months.
Average maturity is required to be three years or less, and as of June 30, 2023, is 1.73
years. The decreasing average maturity is indicative of slowing reinvestment of
maturities to allow for higher returns on shorter-term investments.
0
10
20
30
40
0-12 13-24 25-36 37-48 49-60
Pe
r
c
e
n
t
o
f
p
o
r
f
o
l
i
o
(
%
)
Months until maturity
Portfolio liquidity
June 30, 2023
1.00
1.50
2.00
2.50
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunAv
e
r
a
g
e
m
a
t
u
r
i
t
y
(
y
e
a
r
s
)
Average maturity by month
Fiscal year 2022-23
Dec. 5, 2023 Item #1 Page 25 of 40
-
23
Modified duration is a measure of an investment’s price sensitivity to interest rate
changes. The maximum modified duration established by the city’s Investment Policy is
2.2. As of June 30, 2023, the modified duration was 1.55.
1.20
1.40
1.60
1.80
2.00
2.20
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Mo
d
i
f
i
e
d
d
u
r
a
t
i
o
n
Modified duration
Fiscal year 2022-23
Dec. 5, 2023 Item #1 Page 26 of 40
24
PORTFOLIO INTEREST INCOME
After safety and liquidity, return on investments is the third principal of investments.
Cash income is a function of assets in the portfolio, the market interest rates at the time
of the investments and interest payment schedules of the portfolio holdings.
Interest for the fiscal year totaled $16,168,150, a 34.2% increase, or $4,120,686, from
the prior fiscal year. Interest revenue is allocated to city funds based on their
proportionate value.
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunIn
t
e
r
e
s
t
i
n
c
o
m
e
(
$
t
h
o
u
s
a
n
d
s
)
Portfolio interest income
Fiscal year 2022-23
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
In
t
e
r
e
s
t
i
n
c
o
m
e
(
$
m
i
l
l
i
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n
s
)
Portfolio interest income
Fiscal year 2022-23 and prior nine years
Dec. 5, 2023 Item #1 Page 27 of 40
25
Interest income is influenced by a variety of factors such as market rate, investment
type and amount invested. As these factors are constantly changing, investment income
fluctuates year to year.
With an investment strategy of continued moderate-term investments, the City
Treasurer has also allocated funds to short-term and overnight accounts in the latter
part of the year to take advantage of the steeply increased short-term rates.
-
1,000
2,000
3,000
4,000
5,000
6,000
In
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s
t
i
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c
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e
(
$
t
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a
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s
)
Interest income by investment classification
Fiscal year 2022-2023
Dec. 5, 2023 Item #1 Page 28 of 40
- -
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26
APPENDICIES
Dec. 5, 2023 Item #1 Page 29 of 40
(city of
Carlsbad
27
RISK MANAGEMENT DISCLOSURES
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:
• Credit risk
- Custodial credit risk
• Investments
• Deposits
- Default credit risk
- Concentration credit risk
• Interest rate risk
• Event risk
Custodial credit risk (investments)
The city uses a third-party custody and safekeeping service for its investment securities.
Principal Custody Solutions 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 Principal Custody Solutions failure. All city investments
held in custody and safekeeping by Principal Custody Solutions are held in the name of
the city and are segregated from securities owned by the firm. This is the lowest level of
custodial credit risk exposure.
Custodial credit risk (deposits)
The city maintains cash accounts at Wells Fargo Bank. 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 Wells Fargo Bank 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 an AA credit rating. The default credit risk of
these investments is minimal.
Dec. 5, 2023 Item #1 Page 30 of 40
28
Unless otherwise exempted, California Government Code limits investments, at the time
of purchase, to the top three credit ratings: AAA, AA, and A. It is the city’s policy,
however, to limit investments, at the time of purchase, to the top two credit ratings
(AAA and AA). As of June 30, 2023, five investments in corporate notes had a credit
rating below the AA limit. These investments were made when the credit ratings were
either AAA or AA and a subsequent change in rating has occurred. California
Government 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 (A) is
considered by the City Treasurer to be within acceptable limits for purposes of holding
to maturity and is within the California Government Code limitations.
LAIF is an investment pool managed by the California State Treasurer. Its investments
are short-term and follow the investment requirements of the state. The state treasurer
is not required to contract for a credit rating to be assessed for LAIF. California
Government Code Section 16429.3 excludes LAIF deposits from being transferred,
loaned, impounded, or seized by any state agency or official.
Concentration credit risk
Concentration credit risk is the heightened risk of potential loss when investments are
concentrated in one issuer. The California Government Code does not identify a specific
percentage that indicates when concentration risk is present for any one issuer.
California Government Code Section 53601(k) requires that total investments in
medium-term corporate notes of all issuers not exceed 30% of the portfolio. As of June
30, 2023, approximately 18.1% of the city’s total portfolio investments were in medium-
term corporate notes.
California Government Code Section 53601(o) requires that mortgage-backed securities
shall not exceed 20% of the portfolio. As of June 30, 2023, approximately 4.01% of the
city’s total portfolio investments were in mortgage-backed securities.
For concentration of investments in any one issuer, the city’s Investment Policy requires
that no more than 5% of investments in corporate notes, mortgage-backed securities,
and municipal bonds be in any one issuer. There is no similar requirement in either the
California Government Code or the city’s investment policy for U.S. agencies. As of June
30, 2023, no investments in any one of the aforementioned securities has an issuer that
exceeded 5% of total portfolio investments.
Dec. 5, 2023 Item #1 Page 31 of 40
29
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, 2023, the portfolio had a 5.02% unrealized loss in
market value based on amortized cost.
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 to be equal to an amount that is not less than two thirds of
the current year operating budget of $342,318,824. As of June 30, 2023, the modified
duration of the portfolio was 1.55, within the required maximum of 2.2. Investments
maturing within one year were $315,250,762, exceeding the required minimum of
$228,212,549. 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.
Dec. 5, 2023 Item #1 Page 32 of 40
30
DATA TABLES
Data tables provided for additional details for graphs throughout the report.
Federal target rate detail, fiscal year 2022-23
Period Range limit
Jul 2022 2.25 - 2.50%
Sep 2022 3.00 - 3.25%
Nov 2022 3.75 - 4.00%
Dec 2022 4.25 - 4.50%
Feb 2023 4.50 - 4.75%
Mar 2023 4.75 - 5.00%
May 2023 5.00 - 5.25%
Short-term interest U.S. Treasury rate detail, fiscal year 2022-23
Period Six-month Two-year Five-year
Jul 2022 2.91% 2.89% 2.70%
Aug 2022 3.32% 3.45% 3.30%
Sep 2022 3.92% 4.22% 4.06%
Oct 2022 4.57% 4.51% 4.27%
Nov 2022 4.70% 4.38% 3.82%
Dec 2022 4.76% 4.41% 3.99%
Jan 2023 4.80% 4.21% 3.63%
Feb 2023 5.17% 4.81% 4.18%
Mar 2023 4.94% 4.06% 3.60%
Apr 2023 5.06% 4.04% 3.51%
May 2023 5.46% 4.40% 3.74%
Jun 2023 5.47% 4.87% 4.13%
Market yield curve, fiscal year 2022-23 and prior two years
FY end date Three-month Two-year Five-year Ten-year
06/30/21 0.05% 0.06% 0.87% 1.45%
06/30/22 1.72% 2.92% 3.01% 2.98%
06/30/23 5.43% 4.87% 4.13% 3.81%
Dec. 5, 2023 Item #1 Page 33 of 40
31
Valuation table, fiscal year 2022-23
Different values are presented throughout the report. This data table presents varying
valuation types, listed by class.
Class Par value Market value Book value
Certificate of Deposit $ 21,276,000 $ 19,735,113 $ 21,271,598
Corporate Notes $ 157,005,000 $ 149,168,105 $ 158,288,970
Federal Agency $ 331,633,000 $ 309,326,161 $ 331,245,773
U.S. Treasury $ 79,000,000 $ 75,318,700 $ 78,379,612
Supranational $ 19,440,000 $ 18,379,217 $ 19,569,872
Municipal Bonds $ 69,555,000 $ 64,779,091 $ 69,440,601
Pass Through Securities $ 35,665,124 $ 33,350,238 $ 35,731,741
Cash & Pooled $ 160,775,983 $ 160,775,983 $ 160,775,983
Total $ 874,350,106 $ 830,832,607 $ 874,704,150
Portfolio assets valuation, fiscal year 2022-23 and prior nine years
Fiscal year Par value Market value Book value
2013-14 $ 658,227,474 $ 661,137,492 $ 660,086,643
2014-15 $ 696,923,770 $ 698,918,091 $ 698,095,055
2015-16 $ 715,837,393 $ 721,730,358 $ 717,721,310
2016-17 $ 720,912,625 $ 720,280,916 $ 722,577,923
2017-18 $ 761,973,309 $ 750,805,057 $ 761,499,745
2018-19 $ 794,156,136 $ 796,915,076 $ 793,677,467
2019-20 $ 807,311,873 $ 827,577,140 $ 812,848,717
2020-21 $ 813,600,409 $ 827,094,051 $ 821,268,939
2021-22 $ 846,773,333 $ 821,428,843 $ 852,168,180
2022-23 $ 874,350,106 $ 830,832,607 $ 874,704,150
Sources of portfolio at amortized cost, fiscal year 2022-23
Fund type 2021-2022 2022-2023
General $ 165,734,346 $ 185,166,409
Capital projects $ 390,989,986 $ 375,873,203
Enterprise $ 200,089,457 $ 204,198,973
Fiduciary & Internal service $ 61,321,878 $ 75,097,927
Special & other $ 35,171,822 $ 34,367,638
Total $ 853,307,489 $ 874,704,150
Dec. 5, 2023 Item #1 Page 34 of 40
32
Portfolio allocation at book value, June 30, 2023
Policy limitations are not limited for federal agency issuers.
Class % Total Policy limits
Federal Investments 37.81% N/A
Supranational 2.24% 10.00%
U.S. Treasury 8.96% N/A
Corporate Notes 18.10% 30.00%
Certificate of Deposit 2.43% 30.00%
Pass Through Securities 4.09% 20.00%
Municipal Bonds 7.94% 15.00%
Cash & Pooled Cash 18.38% N/A
Totals 100.00%
Investment changes by class, fiscal year 2022-23
This table presents the detail of investment changes, excluding cash and pooled cash,
listed by class.
Class 06/30/22 06/30/23 Dollar change Change
Certificate of Deposit $ 21,582,000 $ 21,276,000 $ (306,000) -1.42%
Corporate Notes $ 199,353,000 $ 157,005,000 $ (42,348,000) -21.24%
Federal Agency $ 323,551,000 $ 331,633,000 $ 8,082,000 2.50%
U.S. Treasury $ 86,750,000 $ 79,000,000 $ (7,750,000) -8.93%
Supranational $ 27,940,000 $ 19,440,000 $ (8,500,000) -30.42%
Municipal Bonds $ 60,715,000 $ 69,555,000 $ 8,840,000 14.56%
Pass Through Securities $ 28,704,716 $ 35,665,124 $ 6,960,408 24.25%
Total $ 748,595,716 $ 713,574,124 $ (35,021,592) -4.68%
Class Maturities Calls Buys
Certificate of Deposit $ 3,711,000 $ - $ 3,405,000
Corporate Notes $ 61,848,000 $ 2,000,000 $ 21,500,000
Federal Agency $ 23,723,000 $ 1,000,000 $ 32,805,000
U.S. Treasury $ 26,750,000 $ - $ 19,000,000
Supranational $ 8,500,000 $ - $ -
Municipal Bonds $ 3,000,000 $ - $ 11,840,000
Pass Through Securities $ 4,590,591 $ - $ 11,550,999
Total $ 132,122,591 $ 3,000,000 $ 100,100,999
Dec. 5, 2023 Item #1 Page 35 of 40
33
Portfolio yields, fiscal year 2022-23 and prior nine years
Treasury, 06/30/23
Month
ending
Portfolio
yield Fiscal
year
Portfolio
yield
Six-
month
Two-
year
Five-
year
07/31/22 1.37% 2013-14 1.05% 0.07% 0.47% 1.62%
08/31/22 1.39% 2014-15 1.09% 0.11% 0.64% 1.63%
09/30/22 1.51% 2015-16 1.16% 0.36% 0.58% 1.01%
10/31/22 1.82% 2016-17 1.25% 1.14% 1.38% 1.89%
11/30/22 1.89% 2017-18 1.57% 2.11% 2.52% 2.73%
12/31/22 2.01% 2018-19 1.96% 2.09% 1.75% 1.76%
01/31/23 1.87% 2019-20 1.69% 0.18% 0.16% 0.29%
02/28/23 1.89% 2020-21 1.17% 0.06% 0.25% 0.87%
03/31/23 2.02% 2021-22 1.28% 2.51% 2.92% 3.01%
04/30/23 2.09% 2022-23 2.22% 5.47% 4.87% 4.13%
05/31/23 2.21% 06/30/23 2.22%
Unrealized gain or loss, fiscal year 2022-23
Unrealized gain or loss is calculated by subtracting the market value from the book
value. All calculations are performed at the end of each month.
Month
Unrealized
gain or loss
Jul 2022 -3.87%
Aug 2022 -4.98%
Sep 2022 -4.99%
Oct 2022 -4.95%
Nov 2022 -5.85%
Dec 2022 -5.78%
Jan 2023 -4.97%
Feb 2023 -5.75%
Mar 2023 -4.63%
Apr 2023 -4.44%
May 2023 -4.76%
Jun 2023 -5.02%
Dec. 5, 2023 Item #1 Page 36 of 40
34
Modified duration, fiscal year 2022-23
Month Modified duration
Jul 2022 2.05
Aug 2022 1.97
Sep 2022 1.93
Oct 2022 1.87
Nov 2022 1.88
Dec 2022 1.80
Jan 2023 1.78
Feb 2023 1.67
Mar 2023 1.66
Apr 2023 1.61
May 2023 1.57
Jun 2023 1.55
Revenue from investments monthly, fiscal year 2022-23
Month Income
Jul 2022 $ 924,108
Aug 2022 $ 1,119,207
Sep 2022 $ 1,361,805
Oct 2022 $ 1,239,802
Nov 2022 $ 1,025,192
Dec 2022 $ 1,301,852
Jan 2023 $ 1,301,427
Feb 2023 $ 1,366,815
Mar 2023 $ 1,690,393
Apr 2023 $ 1,545,940
May 2023 $ 1,532,137
Jun 2023 $ 1,759,471
Total $ 16,168,150
Dec. 5, 2023 Item #1 Page 37 of 40
35
Revenue from investments by class and totals, fiscal year 2022-23 and prior
nine years
Investment class Cash income Fiscal year Cash income
Federal Agency $ 3,696,650 2013-14 $ 8,105,457
Supranational $ 491,500 2014-15 $ 7,864,801
Treasury $ 882,295 2015-16 $ 8,678,630
Corporate Notes $ 5,040,881 2016-17 $ 9,286,187
Certificate of Deposit $ 283,962 2017-18 $ 11,248,807
MBS (agency) $ 771,419 2018-19 $ 14,837,963
Municipal $ 1,335,783 2019-20 $ 17,031,603
Cash & Pooled Cash $ 3,665,659 2020-21 $ 14,026,325
Fiscal Year 2022-23 Total $ 16,168,150 2021-22 $ 12,047,464
2022-23 $ 16,168,150
Liquidity by maturity period
Period, in months Maturity value Percentage
0-12 $ 318,884,562 38.38%
13-24 $ 173,504,719 20.88%
25-36 $ 167,498,994 20.16%
37-48 $ 113,380,639 13.65%
49-60 $ 57,563,693 6.93%
Total $ 830,832,607 100.00%
Average maturity, fiscal year 2022-23
Month Average maturity (years)
Jul 2022 2.23
Aug 2022 2.16
Sep 2022 2.11
Oct 2022 2.10
Nov 2022 2.08
Dec 2022 2.00
Jan 2023 1.97
Feb 2023 1.88
Mar 2023 1.84
Apr 2023 1.79
May 2023 1.76
Jun 2023 1.73
Dec. 5, 2023 Item #1 Page 38 of 40
36
Cash inflows and outflows, fiscal year 2022-23
The city’s portfolio balance increased 2.64% from $852 million to $875 million in book
value over the fiscal year. The increase of $22.5 million does little to show the volume of
cash that flows in and out of the portfolio during one fiscal year. The following table
illustrates that the City Treasurer managed over $1.09 billion of cash inflows and cash
outflows which prompted investment decisions during fiscal year.
Cash inflows and outflows
Investment calls $ 3,000,000
Investment maturities $ 132,122,591
Investment purchases $ 100,100,999
Interest income $ 16,168,150
LAIF investments $ 74,000,000
LAIF withdrawals $ 2,000,000
CAMP investments $ 190,500,000
CAMP withdrawals $ 53,500,000
Overnight investments $ 262,487,770
Overnight withdrawals $ 256,821,627
Dec. 5, 2023 Item #1 Page 39 of 40
37
ADDITIONAL RESOURCES
The Annual Report of Investments is a stand-alone report; however, additional
documents are available for interested parties:
Investment Policy
The Investment Policy is approved by City Council and governs investment management.
Included are topics such as:
• Investing objectives
• Authorized investments
• Limitations
• Review and reporting
The Investment Policy can be found on the City of Carlsbad City Treasurer website at:
https://www.carlsbadca.gov/city-hall/other-elected-officials/city-treasurer
Monthly investment reports
Monthly investment reports are presented to City Council and provide an in-depth
status on the full portfolio on a routine basis. These reports include aspects such as:
• Current period maturities, calls, and purchases
• Detail listing of investments
• Investment ratings and outlooks
• Portfolio allocation by issuer
The monthly investment reports can be found on the City of Carlsbad City Treasurer
website at: https://www.carlsbadca.gov/city-hall/other-elected-officials/city-treasurer
Contacts
We are available for questions or comments on any Treasurer report or function:
• Craig Lindholm, City Treasurer
treasury@carlsbadca.gov
• Katie Schroeder, Senior Accountant, Treasury Department
Katie.schroeder@carlsbadca.gov
Dec. 5, 2023 Item #1 Page 40 of 40
From:
Sent:
To:
Subject:
Mary Real <anewday4me2020@gmail.com>
Friday, December 1, 2023 10:04 AM
All Receive -Agenda Item # _J_
For the Information of the:
City Clerk; Council Internet Email; Scott Chadwick; Geoff Patnoe; Mary Real; Kyle
Lancaster; Suzanne Smithson
item 1 Comments, Carlsbad City Council 12-05-2023 Meeting
6.4 USER FEE RECOMMENDATIONS Staff should consider user fee recommendations for each ofthe following program
areas . The overall fee structure should reflect the value of the experience and market rates. Adult Programs: Adult
programs are priced higher than the comparison agencies. Higher fees reflect facility and experience quality. Review
higher priced programs to ensure that those classes are priced to reflect the value they provide and ensure options for
those participants who cannot afford premium prices. Sports: Review per unit costs for indoor pickleball classes and
consider implementing tiered pricing like the City of Vista for advanced offerings. Aquatics: The per unit cost for aquatics
programming does not reflect market rates nor the quality of the experience provided by a highly rated facility such as
the Alga Norte Aquatic Center. Increase aquatic program fees to be in line with market and experience rates. Camps:
Offer high-quality camps at competitive prices to attract and retain participants. While some prices may be higher than
other agencies, it is important to ensure the prices are based on the quality of the experience that Carlsbad provides,
which is higher quality than others. Learning and Development: Consider increasing per unit costs for early childhood
classes to be aligned with market rates and the cost of providing services. Adult's 50+: Offer senior programs at
competitive prices to attract and retain participants and explore ways to ensure affordable offerings that make these
programs accessible. Youth Programs: Review per unit costs for youth programs and consider adjusting fees to be
competitive with the other benchmarked departments, particularly the City of Encinitas and the City of Escondido.
Park & Rec Master Plan
Where is the money going that Park & Rec is not spending on Seniors?
Why is the Library not open 7 days a week? Sunday service for 7 hours at one of the
library locations ? The County of San Diego is open less hours but is open 7 hours a day
on Fri., Sat., and Sun?
They are open 8 hours a week 2 days a week and they are open every day to Serve the
Community!
Why is the City mgr. Mr. Scott Chadwick ignoring the requests of seniors and others
regarding these services to the community? Is it
to keep his job?
Why is the City Council advising him to ignore the needs and wants
of the community to Save Money when the true budget figures regarding revenue are not
complete? Is this an over-reaction ?
Where is the money going? Should the various managers be advised that they can Spend
money that is already budgeted? Is Scott Chadwick advising them NOT to spend money?
Thank you,
1
Mary Lucid a graduate of the Citizen's Academy and a Concerned
Senior Citizen
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content i
2
Tammy Cloud-McMinn
From:
Sent:
To:
Subject:
Mary Real <anewday4me2020@gmail.com>
Friday, December 1, 2023 11 :38 AM
City Clerk; Council Internet Email; Scott Chadwick; Geoff Patnoe; Mary Real
item 1 Comments, Carlsbad City Council 12-05-2023 Meeting
6.4 USER FEE RECOMMENDATIONS Staff should consider user fee recommendations for each of the following program
areas. The overall fee structure should reflect the value of the experience and market rates. Adult Programs: Adult
programs are priced higher than the comparison agencies. Higher fees reflect facility and experience quality. Review
higher priced programs to ensure that those classes are priced to reflect the value they provide and ensure options for
thpse participants who cannot afford premium prices. Sports: Review per unit costs for indoor pickleball classes and
consider implementing tiered pricing like the City of Vista for advanced offerings. Aquatics: The per unit cost for aquatics
programming does not reflect market rates nor the quality of the experience provided by a highly rated facil ity such as
the Alga Norte Aquatic Center. Increase aquatic program fees to be in line with market and experience rates. Camps:
Offer high-quality camps at competitive prices to attract and retain participants. While some prices may be higher than
other agencies, it is important to ensure the prices are based on the quality of the experience that Carlsbad provides,
which is higher qua lity than others. Learning and Development: Consider increasing per unit costs for early childhood
classes to be aligned with market rates and the cost of providing services. Adult's 50+: Offer senior programs at
competitive prices to attract and retain participants and explore ways to ensure affordable offerings that make these
programs accessible. Youth Programs: Review per unit costs for youth programs and consider adjusting fees to be
competitive with the other benchmarked departments, particularly the City of Encinitas and the City of Escondido.
Park & Rec Master Plan 2023
Update on Park & Rec '<Management.> of the Senior Center and the Library:
I went to the Thanksgiving lunch at the Vista Senior Center just recently and the
Mayor, 3 City Council Members, the City Mgr., the Park & Rec Senior Center Mgr (Kevin
Granse
formerly of Carlsbad who believes in earning his money and Serving Seniors) and Mike
Pacheco (who allowed Maggie Hammer to downgrade and disappear equipment from the
C-bad
Senior Center who banned me for a year for being scary to the Staff? and who extended
the suspension Forever as far as talking to the Staff by permission of the City Atty?) and
the City Manager as well as other City of Vista employees who wore aprons and served
lunches to the seniors and went to tables to chat with seniors with a Sincere Smile on
their face as if they
were enjoying seeing a segment of the population that Vista is truly serving! Every City of
Vista employee was friendly and spoke to all of the seniors except for Pacheco?
What a pleasant surprise to me as the Carlsbad Senior Center seniors have a hard time
seeing any Staff from Carlsbad Park & Rec. ----Are they hiding out or too busy locking
doors for our safety according to one supervisor??? The Staffers at Carlsbad have now
upgraded to serving Salad twice a month and they have learned how to show a movie
1
once a month. They also do not invite Seniors to hang around talking to one another in
the pleasant cafeteria as the Staff say they have to sweep the floor and put up the chairs
on the table so seniors will get out of the room? This is a room where the seniors could
listen to music and play games but the Staff will not allow it???? The current Staff are
very busy locking doors to restrict access to the rooms. They also do not post info from
AARP bulletins or news mags in the main corridor. There is a security guard but no
seating by the coffee pot. I can see security restricting access to the front and back main
entrances for our "safety" but locking every door to exit the cafeteria to go to the patio
and to enter rooms to sit and talk or play games or draw/do art projects at will seems a
little 'anal' or paranoid to me! It means that seniors have to go the long way round which
can be tiring to seniors with disabilities? Is the C-bad Senior Center even concerned
about having a chair or 2 or 3 at the Customer Service desk area to assist frail seniors? C-
bad Park & Rec-ers also want to know who is in the rooms by having you sign in?
There are no signs on the doors that are locked up that the Staff would be happy to
unlock these rooms if people wanted to use the rooms at will. It is a very Sterile
environment although some staffers are friendly especially when they are enjoying the
bingo after their work hours, of course. Why are Staff not interacting more with Seniors
or getting volunteers to entertain and visit with Seniors and help them with the
computers which are not always functioning. It is difficult to maintain computers but the
Staff is too busy to check on the computer room?
Can Park & Rec. in Carlsbad do more to make Seniors feel welcome to use their Center or
are the Staff lacking ideas or turning down people who want to volunteer as they did prior
to Covid ---what is the volunteer coordinator doing to have the Moms and Daughters
interacting with Seniors as well as the Rotarians and some Church groups? It must be
nice to work for Park & Rec. and do whatever you want with no directions from upper
'Management'? Unlock the doors inside and advertise by computer in the
neighborhood. The public relations people know how to advertise and get people to come
in. I can not even count the # of people who have told me that calls are not returned or
they have been told to Jump through so many
Hoops to accomplish what they want that they just say the heck with this (or words to
that effect)? What is wrong with this picture? The Carlsbad Park and Rec. upper
management are missing in action or ideas? Where is the City Council and the Mayor
doing to advise or direct the City Manager to provide better service to seniors at their
Senior Center? They used to have a Zentangle class which is very good for seniors at a
reasonable cost but now that the fees to instructors are cut and the City is taking up to
50% percent of the fees and not helping the instructors find people to take the
classes,they are not giving out classes for a reasonable amount of money?
Also the Library is still Closed on Sundays???? They apparently want to work Banker's
hours but the City is not a bank ---they just make Money/Bank and are only interested in
making money for the City General Fund to do what? Carlsbad is becoming a second rate
City as far as Serving the Community!
2
Please upgrade the Services to the Community to pre Covid and pre Pacheco/Hammer
ideas of doing whatever they want regardless of the benefit to the Community?
Who is in charge and where is the benefit to the Community by paying high salaries for
Staff that does whatever they want to as there is no Management checking on Staff or
returning calls or planning for the future and upgrading equipment (the kiln is still not
fixed, no maintenance or upgrades. Where is the Money going?
Is it time to upgrade and get an outside evaluation of the Park & Rec and the Library
choices by an independent organization?
Thank YOU and please donate games and scorecard for Yahtzee but NO money to the
Senior Center unless YOU specify that the money is to pay kiln fees or buy
clay or a 50 cent cup of coffee for the Seniors or bring in coffee for the seniors to put in
the Coffee machine from Costco as Staffers do not spend the money on Seniors that has
been
donated??? The Staffers do take advantage of Free coffee for themselves.
Thank you for helping the community by contacting the Mayor and the City Manager and
the City Council members by email or phone or computer
to make suggestions to provide better Services and regain the first rate service rep that
Carlsbad used to have.
Mary Lucid, former C-bad resident and graduate of the Citizens Academy who was banned
from the C-bad Senior Center for over a year
for being a Senior who asked for Staff to up their game and to Serve Seniors and was
"written up" by a very dramatic and paranoid and vindictive
Park & Rec. Staff who were not able to talk to a senior like Me???
Happy Holidays Merry Christmas Shalom We can do better next year or Not ?
Send in your suggestions or just show up even if you have to Ask staffers to unlock
doors????
When you see your reps at various events ASK them to upgrade the Services to the
Community to
regain the once great reputation of the City of Carlsbad when it was a First Rate Leader in
the
area. Is it time for a change on the City Council or Staff or Outsourcing the Legal Dept. to
save
money????
Thanks for helping the Seniors,
Mary Lucid
3
Tammy Cloud-McMinn
From:
Sent:
To:
Subject:
All Receive -Agenda Item # _j_
For the Information of the:
CITY COUNCIL
DateiJ/SJJ:3f:.A v" CC .,,,..-
LIVI 2-ALl◊i ..!-OLM (3) ::?'
Mary Real <anewday4me2020@gmail.com>
Tuesday, December 5, 2023 1 :08 PM
City Clerk; Council Internet Email; Scott Chadwick; Geoff Patnoe; Mary Real
Item# 1, Carlsbad City Council 12-05-2023 Meeting
Happy Holidays to All who are interested in how your money is managed at the expense of
services being
downgraded by the Mayor and the City Council who are too concerned about Money over
providing the first
rate services (the gold standard B4 Covid when Staff learned that they were paid regardless of
performance).
I recently went to Vista for their Thanksgiving Lunch program where ALL upper managers and
assistant managers
were at the Senior Center to interact with the seniors with a smile on their faces and they talked
to seniors and sat
at the table with seniors after Serving the food trays to Seniors??? OMG, there was actual
appreciation and concern
with talking to seniors by Staff. That is not the Case in Carlsbad where staff is MIA ---too busy
doing paperwork or?
Where is the supervision and direction? Money is important and should be used by all
Departments should it not to
maintain the gold standard? What city wants to be second rate? Don't library patrons deserve to
have the library open
on Sunday for 7 or more hours a day?
Where is the money going? Why isn't some money that is donated being used for the benefit of
the seniors?
Is it time to up the Standards and save less money for a rainy day? Saving 40% of the income of
the City of
Carlsbad is much more than other ci t ies save and yet other Cities and Counties provide more
benefits to the
residents in the area???
People ask me what the Senior Center needs : Allowing Seniors to enjoy their Senior Center
without being
locked out of rooms "out of an abundance of caution for their Safety" which is very glib code for
"don't bother
the Staff who are not able to maintain the highest standards of Service to the Community"
without more well
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trained Staff and oversight by Park & Rec. but they are now serving salads two times a month
instead of every
day as they used to do. They have finally figured out how to use the internet after all of the
changes by Mike
Pacheco, Maggie Hammer and Kyle Lancaster. They seem to be more concerned with making it
easy on staff than
doing things to make the Senior Center more pleasant for seniors to use?
Please visit the Senior Center and mingle with the seniors and see for yourself how Park & Rec.
has done so little
to maintain a friendly place for seniors to enjoy gathering and talking to other seniors.
Invest in people and the reputation of your City with some of that money.
Thank YOU
Mary Lucid
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