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04. Treasurer's investment reportADMINISTRATIVE SERVICES DEPARTMENT GUPERTINO CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 (408) 777-3220 • FAX (408) 777-3109 SUMMARY Agenda Item No. i.~ SUBJECT AND ISSUE Meeting Date: February 3, 2009 Accept the Treasurer's Investment Report for December 2008. BACKGROUND The market value of the City's portfolio totaled $55.4 million, with a book value of $55.2. million at December 31, 2008. The $0.2 million unrealized gain reflects the higher pricing placed on investments bought in previous months at interest rates- higher than those currently available. However, the portfolio's D~;,cember yield of 1.19% was down from 1.54% the previous month, and 4.13% a year ~lgo. The Local Agency Investment Fund yielded 2.35% for December, down from 2.57% the previous month and 4.80% a year ago. Yields declined because of the re-investment of .$6 million in matured or called Treasuries and Federal agencies into safe, but low-yielding 'T'reasuries. Rates were also down because of $4 million in a grant reimbursement and security call that came in during the holiday closure: The money -was temporarily held in the low interest cash account until it could be re-invested when offices re-opened in January. The City's portfolio increased $1.7 million from the previous month due to the Mary Avenue Footbridge grant reimbursement. Investments are in full compliance with City invc;stment policy and State law and are tiered to provide sufficient cash flows to pay City obligations over the next six months. Staff will discuss General Fund revenues and expenditures in the upcoming mid-year budget report. RECOMMENDATION Accept the Treasurer's Investment Report fox December 2008. Prepared by: David Woo, Deputy Treasurer Submitted by: Apf~roved for submission: ~~ J Carol A. Atwood vid W. Knapp City Treasurer it~~ Manager 4 _.~ City of Cupertino Investment Portfolio December 31, 2008 ..~ . _ _ o Matwi -PROFTT]L SECURTTIES MATURED 10/]5/08 12/11!08 US Treasury Bill 0.05% 0.05% 2,000,000 2,000,000 2,000,000 0 07!30/08 12/19/08 FHLB discount note 2.50% 2.52% 1,000,000 1,000,000 1,000,000 0 10/]7108 12/18/08 US Treasury Bill 0.25% 0.25% 3,000,000 3,000,000 3,000,000 0 10/15/08 12/26/08 US Treasury Bill 0.20% 0.20% 1,000,000 1,000,000 1,000,000 0 12/10/07 12/31/08 U5 Treasury Note 4.75% 3.18% 2,000,000 2,000,000 2,000,000 0 SECURITIES CALLED 06/18(08 06/18/10 FHLB cal]able __3.35% 3.35% 1,000,000 1,000,000 1,000,000 ___ _ 0 __ 06/26/08 06/26!09 FHLB callable 3.13% 3.13% 1,000,000 1,000,000 1,000,000 0 06/30/08 12/30/09 FHLB callable 3.25% 3.25% 1,000,000 1,000,000 1,000,000 0 SECURITIES PURCHASED 12/15/08 10/31/09 US Treasury Note 3.63% 0.40% 1,026,719 1,000,000 1,026,330 (389) 12/18/08 09/15/09 US Treasury Note 3.38% 0.29% 1,021,718 1,000,000 1,021,250 (468) 12/18/08 10/15/09 US Treasury Note 3.38% 0.30% 1,024,219 1,000,000 ],024,100 (119) 12/18/08 11/30/09 US Treasury Note 3.13% 0.32% 2,051,135 2,000,000 2,049,600 (1,535) 12/19/08 12/15/09 US Treasury Note 3.50% 0.24% 1,031,1 l8 1,000,000 1,029,840 (1,278} - --- ---_-__ ___ ----~~_ CITY PORTFOLIO ~-~~ CASH 12/31 /08 Welts Fargo -Workers Comp Checking 23,660 23,660 23,660 0 12/31/08 We11s Fargo -Regular Checking 750,000 750,000 750,000 0 12/31/08 Wells Fargo -Repurchase Agreements 0.10% 0,10_% _.----- 3,980,404 3,980,404 3,980,404 - 0 -------..__._--- -- ---- ----~ ---.__.._ 4,754,064 4,754,OG4 4,754,064 0 LAIF 12/31/08 LAIF -State Pool 2.35% 2.35% 568,109 568,109 568,109 0 --_-- - .__..___ -_-..._..___ CERTIFICATFS OF DEPOSIT --_ 03/17/04 03/17/09 Peoples State Bank 3.40% 3.40% 99,000 99,000 99,459 459 03/24/04 03/24/09 Washita State Bank, Bums Flat OK 3.35% 3.35% 94,000 99,000 99,493 493 12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ 4.80% 4.80% 99,000 99,000 100,757 1,757 12/28/05 12/28/]0 Nat'I Bank of New York City, NY 4.90% 4.90% 97,000 97,000 96,876 (124) 394,000 394,000 396,585 2,585 MONEY MARKET FUNDS 12!31/08 Wells Fargo Government 0.76% 0.76% 2,228,125 2,228,125 2,228,125 0 12/31/08 Wells Fargo 100%Treasury 0.09% 0.09% 4,406,850 4,406,850 4,406,850 0 _ 6,634,975 6,b34,975_ G_,_G__3_4_,9__75_ _ _ 0 AGENCY NOTES 01122/08 08/03/09 FFCB 5.25% 2.55% ____1,015,458 _ 1,000,000- _ 1,02_7,810 12,352 _____ 09/23/08 09/23/09 _____ FFCB 2.70% 2.57% 1,000,911 1,000,000 __ 1,015,630 14,719 __ 06/25/08 05/07/10 FFCB _ 4.75% 3.38% 1,017,729 1,000,000 1,052,190 34,461 05/07/08 06/1 ]/10 FHLB 3.00% 2.98% 1,000,289 (,000,000 1,030,940 _ 30,651 07/28/08 __ 07/28/10 __ FFCB callable 3.30% 3.30°~ 1,000,000 1,000,000 1,015,310 15,310 08/18/08 08/18/10 _ _ FFCB callable ~ __ 3.57% 3.57% 1,000,000 1,000,000 _ 1,003,750 3,750 __ 05/27/08 _ 08/27/10 _ _ FHLB callable 3.30% 3.30% 1,000,000 1,000,000 1,010,630 10,630 05/19/08 11/19/10 FHLB callable 3.15% 3.15% 1,000,000 1,000,000 1,009,060 9,060 05(28108 02/28!11 FHLB callable 3.40% 3.40% 1,000,000 1,000,000 1,010,630 10,630 9,034,387 9,000,000 9,175,950 141,563 4-2 City of Cupertino Investment Portfolio December 3l, 2008 --_____ ------- --- RATE o Mated -- -PR~FITICOSS US TREASURY SECURITIES 10/17/08 01/02/09 US Treasury Bill _ 0.30% 0.30% 1,999,967 2,000,000 2,000,000 - 33 10/15!08 01/08/09 US_Tteasury Bill _ _ 0.10% 0.10% 999,978 1,000,000 1,000,000 ___ _ _ __ 22 _10/]5/08 01/15/09 US Treasury Bill 0.2:i% 0.25% 999,896 1,000,000 999,990 94 10!17/08 O1/IS/09 US Treasury Bill _ 0.30°/D 0.30% 1,999,750 2,000,000 1,949,980 230 10!15/08 01/22/09 US Treasury Bill O.l:i% 0.15% 999,908 1,000,000 1,000,000 92 _ 12!20/07 01/31/09 US Treasury Note 4.88% 3,06% 1,001,496 1,000,000 1,003,550 2,054 ]0/1S/OS 02/05/09 US Treasury Bill ~ _ 0.311% 0.30°/D 999,700 ],000,000 999,970 270 02/19/08 _-_02_!15/09 US Treasury Note _3.00% 1.77°/D 1,00(,529 ],000,000 1,003,280 1,751 10/15/08 02/19/09 US Treasury Bill _ 0.4:1% 0.45% 999,375 1,000,000 999,970 595 10!15/OS 02/26/09 _U_ST_reasuryBill 0.4;1/o _0.46/0 999,288 1,000,000 999,960 673 10/15/08 03/05/09 US Treasury_Bill 0.60% 0.61°/ 0 __ _998,933 1,000,000 999,830 897 10/15/08 10/IS/08 03/12/09 _____ 03/]9/09 U3 Treasury Bill US Treasury Bill _ V. O.bO% 0.60°/D _ _ 0.61% 0.61°/D -^ 998,817 ___ 9 98,7 00 1,000,000 1,000 ,00 0 999,920 99 9,900 1,103 ],200 03/10/08 03/31/09 US Treasury Note _ 4.50°/D 1.44°/D __ _ _ _ 1,007,468 _ _ _ _ 1,000,000 _ __ _ T 1,OIO,b30 __ T 3,162 10!20/08 04/29/09 US Treasury Cash Management Bill 1.20% 1.22% 1,494,050 ],500,000 1,499,670 5,620 03/12/08 04/30/04 U_5 Treasury Note 4.50% 1.51% 1,009,692 1,000,000 1,014,140 4,448 07/17/08 05/15/09 US T_reasu_ry Note 3.813% 2.06% 1,006,635 1,000,000 1,013,550 6,915 07/24/08 05/15!09 U5 Treasury Note _ - 3.88% _- 2.3 0% _ _ 1,005,720 1,000,000 1,013,550 7,830 08/27/08 06/30/09 US Treas_nryNote_ _ 4.88°/D _ _ 2.09% _ _ 2,027,268 2,000,000 2,045,540 18,272 _08/28/08 07/31/09 US Treasury Note __ 4.b_i%D 2.13% _ 2,028,505 2,0 00 , 000 2,049,760 21,255 11/26/08 08/31/09 US Treasury Note 4,00°/D 0.73% _ _ 2,043,159 _______ _ _ _ _ 2,000,000 __ 2,047,740 4,581 I2/I 8/08 09/15/09 US Treasury Note 3.38°/D 0.29% 1,021,718 1,000,000 1,021,250 (468) 11126/08 09/30/09 US Treasury Note 4.011% 0.69°/D 1,024,652 1,000,000 1,026,950 2,298 12/18/08 ]0/15!09 US Treasury Note _ ~ ~ 3.313°/D 0.30°/D 1,0711,219 1,000,000 ____ 1,024,100- ____ (] 19) 12!15/08 10/31!09 US Treasury Note 3.6:3°/D 0.40°/D 1,026,719 ],000,000 _ 1,026,330 _ (389) ]2/18/08 ] 1/30109 _ US Treasury Note _ 3.1;1% 0.32°/D 2,051,135 2,000,000 __ _ 2,049,600 _ _ (1,535) 12/19/08 12/15/09 US Treasury Note 3.50% 0.24% 1,031,118 1,000,000 1,029,840 _ ____ _ (1,278) 33,799,394 33,500,000 33,879,000 79,606 Total Managed Portfolio 55 184 930 54 851 148 55 408 683 223 753 Average Yield 1.19% Average Length to Maturity (in years} 0.47 TRUST PORTFOLIO (!(ESTER TRUST} ..----- ._____ CASH _...._ 12/3!!08 Wells Institutional Money Mkt Acct 0.9'x% 0.97°/D 48,158 48,158 48,158 0 Total Trnst Portfolio 48 158 48,158 48 158 0 BOND RESERVE PORTFOLIO Bond Reserve Acct Ambac Assurance Security Bond 1 1 1 Bond Payment Acct Wells Treasury Plus Money Mkt O.O:i°/D 0.05%_ 1,058,197 1,058,197 1,058,197 0 Total Bood Reserve Portfolio 1 058197 1 058197 1058197 0 4-3 Rate of Return Com arison 5.00% 4.50% 4.00% 3.50% 3.00% 2.5p% 2.00% 1.50% 1.00°~ 0.50% 0.00% -~uiF -f-cupa~tLw 4-4 COMPLIANCE WITH INVESTMENrC POLICY -._--. ___ ___. r_._......._ .__.. _... ... _._.. .....___.. _. _._. _...._ ._...__.____ ._ ....... ___.. _.. ..._...__.... City of Cupertino I ~ December 31, 2008 Cate~orv Standard i Comment Treasury Issues US Agencies _ _ Medium Term Corporate Bonds LAIF Money Market Funds Maximum_Maturities ______ ____ Per Issuer Max Bankers Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements ',Reverse Repurchase agreements No limit ~ Complies No limit ;Complies 30% with A rating ~ ,Complies __ _. .. _ $40 million _. _ __ _ _ t ---- Complies ___. _ 20% -- ___ . Com lies P __ Up to S years ___ ____ _ _ _ _ _ Complies 10% (except .for Treasuries and US Agencies) Complies 180 days & 40% Complies 270 days & 25% Complies 30% Complies 365 days :Complies Prohibited ;Complies 4-5 4-6