CA Review JRT
Meeting Date: Dec. 5, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Craig Lindholm, City Treasurer
[email protected], 442-339-2473
Subject: Annual Report of Investments for Fiscal Year 2022-23 Districts: All
Reco
mmended 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 Analy sis
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 E
valuation
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: $16,168,150
• Average maturity as of
06/30/23: 1.73 years
3.00 5.00
7.00 Three-
month
Two-
year
Five-
year
Ten-
year
Interest rate (%)
Maturity
Market yield curve
06/30/23
760
810
860
910
Par value Market
value
Book value
Asset value ($ millions)
Total portfolio valuation
06/30/23
0.00 0.50
1.00 1.50
2.00 2.50
Jul Sep Nov Jan Mar May
Yield (%)
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 Rate (%)
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
6.00Rate (%)
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 Percentage rate (%)
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
Interest Rate (%)
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
-
- - -
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: $874,704,150, increase of 2.64% over prior year.
The portfolio is constantly fluctuating. Safety of capital is the first and foremost investing principal, but small increases and decreases are normal and expected. These fluctuations occur as a normal part of operations.
Causes of portfolio increases:
• Interest earned
• Revenues in excess of expenses
Causes of portfolio decreases:
• Interest incurred
• Expenses in excess of revenues
790
800
810
820
830
840
850
860
870
880
Par value Market value Book value
Asset value ($ millions)
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■ ■
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 $216,122,632. This total increase is a result of thoughtful and prudent investment decisions. All funds in excess of expenses are reinvested while maintaining the liquidity required for city operations, present and future.
-
100
200
300
400
500
600
700
800
900
1,000Asset value ($ millions)
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 Percentage change (%)
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
- - --
■ ■
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
2.25Portfolio yield (%)
Portfolio yield by month
Fiscal year 2022-23
0.00 0.50
1.00 1.50
2.00 2.50
3.00Portfolio yield (%)
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
6.00Interest rate (%)
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
Percent of Amortized Cost (%)
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
Percent of porfolio (%)
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 Jun
Average maturity (years)
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
Modified duration
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 $4,120,686, from the prior fiscal year. Interest revenue is allocated to city funds based on their proportionate value.
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Interest income ($ thousands)
Portfolio interest income
Fiscal year 2022-23
-
2.0 4.0
6.0 8.0
10.0 12.0
14.0 16.0
18.0Interest income ($ millions)
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
6,000Interest income ($ thousands)
Interest income by investment classification
Fiscal year 2022-2023
Dec. 5, 2023
Item #1 Page 28 of 40
- -
---
~ ~ v(:\ e" ~ ,l> ~ ,l> e(::'- ~ 0~ 0 ~ .o,~ is
"?-¢c ~o rt>' ~ <:::>e~ 9:,1> ~ ~o
~
~1> "'-'<l} ~e d' e: ~v 't)-
orb
~1> ',· ~1> ~¢c §' c,v~ v· 0 t;-·
«.<l} o'~ <.f o(:J <}>
(.) ~
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
[email protected]
• Katie Schroeder, Senior Accountant, Treasury Department [email protected]
Dec. 5, 2023
Item #1 Page 40 of 40
From:
Sent:
To:
Subject:
Mary Real <[email protected]>
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 structu re 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 <[email protected]>
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 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 othe rs. 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 Tamm y Cloud-M cMinn
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 <[email protected] >
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 cities 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
1 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
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content i safe.
2