07. Treasurer's Report
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City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777·3220
FAX: (408) 777-3366
CUPEIQ1NO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. 7
Meeting Date: May 16, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for March 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended March 31, 2006. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $44.4 million at March 31, 2006, with a
maturity or face value of $44.8 million. As interest rates continue to rise, the market
value of the portfolio continues to be lower than maturity value, as the older, low fixed
interest rate securities in the portfolio are being valued at a lower price by the market.
This difference between market and maturity value is an unrealized paper loss at this
specific date. Based on an Audit Committee preview of the April portfolio, four Agency
securities in May were sold at a small realized loss in order to shorten the average
maturity of the portfolio in light of the continuing rise in interest rates. With the proceeds
placed in money market funds and LAIF, the portfolio is in a better position to take
advantage of this interest rate trend.
The Local Agency Investment Fund (LAIF) yielded 4.14% for March, an improvement
from 4.04% in the previous month and 2.54% a year ago. The City's portfolio as a whole
yielded 3.85% in March up from 3.74% the previous month and 2.71 % a year ago.
The City's cash and investment holdings rose $1.3 million in March reflecting strong
quarterly sales tax activity.
The investments of the City of Cupertino are in full compliance with our City investment
policy and/or State law, and are tiered to provide the City with sufficient cash flows to
pay its obligations over the next six months.
Printed on Recycled Paper
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RECOMMENDATION
Accept the Treasurer's Investment Report for March 2006.
Submitted by:
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David R. Woo
Deputy Treasurer
Approved by:
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Carol A. Atwood
City Treasurer
Approved for submission:
~
David W. Knapp
City Manager
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City of Cupertino
March 31, 2006
I I
ALIIVIlY UA/t " I UNKtALJ¿tu
" IIUN KA/t LU>/ vALUt VALUE PRuFITlw»
>ELURlTIE> MATURED ._---~
~-
SECURITIES PURCHASED -
03/30/06 03/28/08 ust lieorgta JjanKmg company 5.05% 99,000
03128/06 09/28/07 Venture Bank 5.00% 97,000
03130/06 03/30/07 Western Sierra National Bank 5.00% 95,000 -
03129/06 03/29/07 First National Bank of Scottsboro 4.90% 99.000 ---
.n_. ..·__w_·~.._._ -
--.------. -....--
CURRENT PORTi<OLIO-'-
CASH ----
03/31106 Wells Fargo - Workers Camp Checking 17,347 17~347 17,347 0
03/31/06 Wells Fargo - Regular Checking I 749,410 749,410 749,410 0
03131/06 Wells Fargo - Money Market Checking 0 0 0 0
CA 766,757 766,757 766;157 0
--.,-- iAïí'-------- ,------ -----
Lï\-- ------_.~. --03=6 rÆF'="" ;::,tate 1'001 ,,/m JL,14ö,JL~ 1.L,J4Ö,1¿3 JL.J4lJ,JL~ U
---,
CERTIFICATES OF DEPOSIT
-- -------,------- --
03/30/06 03/30/07 Western Sierra National Bank 5.00% 95,000 95,000 94,773 (227)
--- ----ò3T29Tò6 - 03729/07 First National Bank of Scottsboro 4.90% 99,000 99.000 98,673 (327)
-- , 02/03/06 05/01/07 Mountain National Bank 4.60% 98,809 99.000 98,329 (480)
-- 01/Û/06 07127/07 Lehman Bros Bank 4.60% 97,000 97.000 96,187 (813)
- --02/03/06 08/03/Ò7 Business Bank of Fox River 4.60% 99,000 99.000 98,159 (841)
--, 03/24/04 09/24/07 Signature Bank Nat'l Assn 2.70% 99,000 99.000 95,416 (3,584)
03/28/06 09/28/07 Venture Bank 5.00% 97,000 97.000 96,631 (369)
--, --02/Ò3ïò6 02/04/08 PrimeSouth Bank 4.65% 97,000 97.000 95,920 (1,080)
02/1ò/06 ---o2TiTiõif Fïôiìda Community Bank 4.75% 99,000 99,000 98,057 (943)
03/17/04 03/17/08 American Trust Fed Savings-:Sank- --- 3.00% 99,000 99.000 94,798 (4,202)
0'3/1910. '----0)/19/08 Pfãñtersfirst Cordell GA 3.05% 98,000 98,000 93,960 (4,040)
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99.000 94.757 (4,243)
---- -03/24/04 03/24/08 Wilmot State Bank 3.00% 99,000 99,000 94,757 (4,243)
03/26/04 03/26/08 Privatebank & Trust - 3.20% 99,000 99.000 95/15 (3,885)
03/30/06 03/28/08 First Georgia Banking Company 5.05% 99,000 99,000 98,537 (463)
04/07/04 04/07/08 Cole Taylor Bank 2.490/; 97,000 -'-~7,OOO' ----94,790 (2,210)
- 03/26/04 09/26/08 Southcoast Communtiy Bank 3.20% 98,000 98,000 93,245 (4,755)
03/17/04 03117/09 Peoples State Bank 3.40% 99,000 99,000 93,751 (5,249)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 93,582 (5,418)
-- --T'lTJOlòs "--12/30/09 Meridian Bank .-----. 4.80% 99,000 99,000 97.044 (1.956)
12/28/05 121!8/10 Nat'l Bank of New York City 4.90% ---n,000 97,000 --94,843 (2,157)
CD 2,062,809 2,063,000 2,011,324 (51,485)
MONEY MARKET FUNDS
03/31/06 Wells Fargo Government 4.52% 5,502,403 5.502,403 5,502.403
MM 5,502,403 5,502,403 5,502,403 0
~- ---.---.- ,.- ,------- ------",-,,----------- ~- -- --,------ -~- -----
- AGENCY NaŒS
- .-- -,--,-----,---~-,- -~---
07=3 07121 /06 FHLB callable -.------ 2.20% 500.000 500,000 495,780 (4,220)
08/07/03 08/07/06 FHLB callable, step coupon 2.75% 500.000 500.000 496,095 (3,905)
08111/03 08/11/06 FHLB callable 2.50% 2,400,000 2,400,000 2,379.000 (21,000)
03/08/04 12126/06 FHLMC callable 2.30% 796,090 800,000 783,864 (12,226)
07/09/93 04/15/07 FHLMC mortgage~backed 6.57% 40,128 38,584 38,506 (1,622)
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City of Cupertino
March 31, 2006
uA,~ ADJUSTED MATIJRITY
'v DESCRIPTION RATE COST VALUE VALUE PROFhILU»
04/30/04 04/30/07 FHLMC callable 3.30% 499,991 500,000 490.505 (9,486)
12/22/03 06122/07 FNMA 3.30% 1,000,000 1,000,000 978,750 (21.250)
04118/()5 10/18/07 FHLB adjustable rate 4.40% 1,500,000 1,500,000 1,497,900 (2,100)
"04114104 12/03/07 FNMA callable 2.50% 993,967 1,000,000 959.060 (34.907)
12/13105 12/28/07 FFCB 4.75% 1,000,838 1,000,000 994.380 (6,458)
04/23/04 01123/08 FHLB callable 3.15% 1.492,632 1,500,000 1,450,320 (42,312)
02125/04 021 LS/08 FHLMC 3.13% 1,000,000 1,000,000 964,980 (35.020)
11/21105 '"06/23/08 FFCB 5.79% 1.023,682 1,000.000 1,015,160 (8.522)
01/12104 08106708 FHLB callable, step coupon 3.50% 999,034 1,000,000 981,250 (17,784)
04/29/04 10129/08 FHLB callable, step coupon 3.25% 300;000 '" 300,000 291,750 (8.250)
12/15/03 i2ïT5/08 FHLMC callable, step coupon 4.00% 1,000,00<)' .. 1,000,000 985,860 (14,140)
12/30/03- 12130/08 FHLMC callable, step coupon --4:7"5% 1,000,000 1,000,000 991,570 (8,430)
03116/04 ,-- 03116/09 FNMA callable 4.01% 1,600.000 1,600,000 1,550.496 (49,504)
03/30/04 03/30ïO'r FHLB callable, step coupon 3.50% 600,000 ~_..,,-- 600,000 592,878 (7,122)
04/30/04 ,,- 04/30/09 FHLB callable, step coupon 3T3% 1,000.000 1,000,000 997,190 (2,810)
12/28/05 12]28/09 FHLB callable 5.04% "915;00-0 915,000 906,426 (8,574)
- -'._-'- 11/30/05 04/07/10 FFCB callable ..m__ 3.70% 952.838 1,000,000 -947;300 -~-(5,338)
- 11121/05 07/12TiO FHLMC 4.13% 976.900 -- "-'-r,OOO,OOO 961,250 (15,650)
12/15/05 12/15110 FHLMC callable --...·._-·0 5.04% 1,000,000 1,000,000 988.800 (11,200)
02101706 02/01111 FFCB callable 5.25% 250,000 250,000 247,423 (2,577)
- ----~-
MO 23,341,101 23,403,584 22,986,693 (354,408)
--
US GOVERNM"ËNì' SECURITIES
03131/05 0813t/06 US Treasury Note 2.38% 982,812 1,000.000 990.350 7,538
US - 982,812 1,000,000 990,350 7,538
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¡Total Manag~ I Portfolio 44,SU4,UU7 44,SS3,Sb9 44,' ,
Average Yieldl 3.85%
Average Length to Maturity (in yean) 1.26 -.,
TRUST & AGENCY PORTFOLIO
CERTIFICATES OF DEPOSIT,
07127/01 I 03/31/06 ¡Cupertino Natl (Kester Trust) 2.93% 43,217- .--- 43,217 43.217 0
I I
110ial Trust & Agency Pomolio IU,¿l1 43,217 43,217 0
-- "
-,---
BOND RESERVE PORTFOLIO ,,-
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Bond Reserve Acct #078793 Ambac Assurance Security Bond -, 1 1 1 0
Bond Payment Acct #078794 Wells Fargo Treasury Plus Money M 4.03% 12,991 12,991 12,991 0
otal Hood Reserve Portfoli H,'9I U,991 H,"J U
'"
---.-
,-- -
--
-,
- --
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4.50% -
4.00% -
3.50%
3.00% -
2.50%
2.00%
1.50% -
1.00% .
Investments by Type
Managed Portfolio
US Treasuries
2%
Agency Notes
52%
Cash
2%
5%
Rate of Return Comparison
3/05
9/05
3/06
4/05
5/05
6/05
7/05
8/05
10/05 11/05 12/05
1/06
2/06
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
March 31, 2006
Category
Standard
Treasury Issues
US Agencies
Medium Tenn Corporate BondsfNotes
LAIF
Money Market Funds
Maximum Maturities
Per Issuer Max
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
No limit
No limit
30% with A rating
$40 million
20%
Up to 5 years
10% (except LAIF)
180 days & 40%
270 days & 25%
30%
365 days
Prohibited
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Comment
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