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05. Treasurer's ReportADMINISTRATIVE SERVICES DEPARTMENT CITY HALL ~~~ I 10300 TORRE AVENUE - CUPERTINO, CA 95014-3255 C l.7 P E RT 1 N O (408) 777-3220 • FAX ;408) 777-3109 Agenda Item No. SUBJECT AND ISSUE SiJ1VIIViARY Meeting Date_ March 17, 2009 Accept the Treasurer's Investment Report for January 2009, including a report on General Fund Revenues and Expenditures. BACKGROUND Investments The market value of the City's portfolio totaled $59.9 million, with a book value of $59.8 million at January 31, 2009. The $O.1 million unrealized gain reflects the higher pricing placed on investments bought in previous months at interest rates higher than those currently available. The portfolio's January yield of 1.14% was down from 1.19% in the previous month due to lower rates in the Local Agency Investment Fund (LAIF) and money mazket accounts. These reasons plus the addition of Treasuries to the portfolio caused the yield to drop from 3.92% a yeaz alto. The LAIF benchmark was at 2.05% for January, down from 2.35% the previous month and 4.62% a year ago. The City's portfolio increased $4.5 million from the previous month due to the receipt of sales and property taxes. The inflow plus $ ;~ million in maturing Treasuries were re- invested in new short-term Treasuries, Federal Home Loan Bank notes, and money market funds. Investments are in full compliance witri City investment policy and State law and are tiered to provide sufficient cash flows to pa}~ City obligations over the next six months. General Fund Revenues and Exnenditures Fiscal year-to date revenues are up 9% for the same period last year but downward trends in sales taxes, transient occupancy taxes, and building permits point toward revenues coming in flat compared to last year. This forecast is still in line with the current revenue budget, but this could change as monthly receipts aze realized. Comparable year-to-date expenditures are up a modest 2% over last year. With a budgeted 6% increase for General Fund programs, some year-end budget savings can be expected. s-~ Treasurer's Investment Report March 17, 2009 Page 2 of 2 RECOMMENDATION Accept the Treasurer's Investment Report for January 2009, including a report on General Fund Revenues and Expenditures. Prepared by: David Woo, Deputy Treasurer Submitted by: l__-~l~C ~ (~ X717 Carol A. Atwood ` City Treasurer Approved for submission: >~~ David W. Knapp City Manager 5-2 City of Cupertino Investment Portfolio January 3I, 2009 --- o Maturi ~1~- VAti~E _ _ SECURITIES MATURED 1 O/17/OS 01/02/09 US Treasury Bii3 Q_.30 % 0.30% _ 2,OOQ000 2,000,000 2,OOQ000 O 10/15/08 01/08/09 US Treasury Bill O. 10% 0.10% 1,000,000 __ 1,OOQ000 1,000,000 O 10/I S_/O8 07/15/09 US Treasury Bilt 0.25% 0.25% 1,000,000 1,000,000 1,000,000 O 10/17/08 _0_1/15/09 US Treasury Bill 0.:30% 0.30% 2,000,000 2,000,000 2,000,000 _ O 10/l5/OS 0122/09 US Treasury Blll 0.15% 0.15% 1,000,000 1,000,000 1,000,000 0 SECURITIES PURCHASED 01/12/09 12/15/09 US T_r_easury_N_ote__________ _ ____3.:50_% 0.36% 1,027,277 1,000,000 1,025,660 (1,6 17) 01/12/09 03/15/]O US Treasury Note 3.63 % 030% 2,Ob3,422 2,000,000 2,058,760 _ {4,662) 01/12/09 02/15/]0 US Treasury Note _____ _ _ __ ____6.:5_0°_/0 _ _ 0.44% 2,125,595 2,000,000 2,121,320 (4_27 5) 01/12/09 03/31/10 US Treasury Note 1.'75% __ 0.36% 2,032,302 _ 2,000,000 2,026,100 _ (6,202) 01/30/09 0622/09 FHLB discount note O.•F1% 0.41% _ 9 9 8,383 1,000,000 998,200 (183) _01/30/09 09/10/10 FHLB 5.13% 1.33% _ _ _ _ _ 1,060,168 ___ 1,OOQ000 1,058,750 (1,418) _ CITY PORTFOLIO CASH ___ '~ 01/31/09 Wells Fargo -Workers Comp Checking 14,564 14,564 14,564 O _ _ 01/31/09 Wells Pargo -Regular Checking 77 0,758 770,758 770,758 O 01/31/09 Wells Fargo -Repurchase Agreements O. 10% O.1 O% _ 2,080,262 _ _ _ _ 2,080,262 2,080,262 O -_._ .___ ___ _ 2,865,584 2,865,884 2,865,584 _ O L.AIF __ - _ ___-.___,_.____ 01/33/09 LA1F-State Pool 2.05% 2.05% 585,278 885,218 585,218 0 CERTIFICATES OF DEPOSIT __03/17/04 03/17/09 Peoples Stale Bank 3!LO%- 3. 40% 99,000 99,000 99,301 307 __ 0324/04 0324/09 Washita State Bank, Bums Flat OK 3.:5 5% _ 3.35 % __ _ 9 9,000 _ _____ 99,000 99,344 344 12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ __ _ 4.150% __ _ 4.80% _ ____ _ 99,000 99,000 100 ,846 _______ 1,846 1228/05 12/28/10 Nat'l Bank of New York City, NY 4.90% 4-90% 97,000 97,000 _______ _ 98,541 1,541 394,000 394,000 398 ,032 4,032 MONEY MARKET FUNDS _ _ ___ _ __ ___ ~ _ _ _ ~~ ___ __ __ 01/31/09 Wells Fargo Government 0.56% 0.56% 3,121,428 3,121,428 3,121,428 O 01/31/09 Wells Fargo 100% Treasury -- ~-_- 0.01% 0.01% 7,727,]56 7,727,156 7,727,15 6 O __ - -- 10,848,584 10,84 8 ,5 84 _ _ ]0,848,584 O AGENCY NOTES _ _ _ _ 01/30/09 __ 0622/09 FHLB discount note O.41% 0.41% 998 , 383 1,000,000 995,200 (183) 0122/08 08/03/09 FFCB ____ 5. :5% 2.55% _ _ _ 1,013,229_ __ 1,000,000 1,023,130 _ __ _ 9,901 0923/08 _ 0_9_2_3/09 FFCB_________ 2"~O% 2.57% 1,000_,805 1,000,000 1,012,190 ______ _ ]1,385 0625/08 05/07/10 FFCB 4."~5% 3.38% __ 1,076,612 1,000,000 1,043,750 __ _ ~ 27,138 05/07/08 06/) 1/10 FHLB 3.00% 2.95% 1,000,272 1,000,000 1,019 ,6 90 19,418 _ _0728/08 ^ 0728/10 r-r•CB callable 3._IO% _3.30% 1,000,000 1,000,000 _ _ _ 1,010,940 _ _ _ IQ940 __ O8/L8/08 OS/IS/10 FFCB callable _ _ 3.,~7% 3.57% 1,000,000 1,000,000 ,001,250 1 __ 1,250_ 0527/08 0827/10 FHLB callable _ ___ _ __ 3. 0% 3.30% 1,000,000 1,000,000 _ 1,007,190 _ 7,190 01/30/09 09/70/10 FHLB ____ ___ 5.13% 1.33% 1,060,168 1,000,000 1,058,750 __ (1,418) 05/19/08 11/19/70 ____ _ FHLB Callable 3.75% 3-15% 1,000,000 ___ 1,000,000 k,00G,250 __ _ b,250 0528/08 0228/11 FHLB callable 3 ~-O% 3.40% 1,000,000 1,000,000 1,007,500 7,500 11,089,469 11,000,000 11,]88,840 99,371 5-3 City of Cupertino Investment Portfolio January 3I, 2009 ~'"S~K1TY7'167~----. -~AT13 o Maturi _~I~..__ ._-_VA-LL7~E VALIIE_-_ ~03'~ US TREASURY SECURITIES __ ___ 12/20/07 01/31/09 US Treasury Note 4.88% 3.06% 1,000,000 1,000,000 1,000,000 O 10/15/08 02/05/09 US Treasury Bill- 0.3 0 % 0.30% 99 9,958 ____ 1,000,000 _ 1,000,000 __ 42 02/19/08 02/15/09 US Treasury Notc _ _ _ _ 3.00% _ ~~ 1.77% _ __ _ 1,000,499 _ 1,000,000 1,000,950 _ 481 _ 10/15/OS ___ 10/15/08 10/15/OS 02/19/09 ____02!2_6/09 03/05/09 US Treasury Bill US Treasury Bill __________ __ US Treasury Bill _ _ 0.45% 0.45% 0.60% 0.45% 0.46/0 0.61% 999,763 ____ 999,675 999,450 _ . _ 1,000,000 _ ____1,000,0_00 ~ 1,000,000 _ 999,940 ______999,900 _ ~ ____9_9_9_,8_50 178 _ _______ 225 _ _'________ 400 10/15/08 03/12/09 US Treasury Bill 0.60% 0.61% 999,333 1,000,000 999,810 477 10/15/OB 03/19/09 US Treasury Bill 0.60% 0.6]% 949,217 1,000,000 999,770 553 03/10/08 03/31/09 US Treasury Note 4.50% 1.44% 1,004,896 1,000,000 1,006,720 1,824 10/2.0/08 03/12/08 04/29/09 0 4/30/0 9 US Treasury Cash Management Bill Tceas ury Note _ _ S U 1.20% 4.50% _1 .22% 1.51% 1,495,600 7,007,188 _ 1,500,000 1,000,000 __ __1,499,280 1,010,120 3,680 2,932 _ 07/17/08 _____ _ _ _ 05/15/09 _ _ _ US Treasury Note 3.58% 2.OG% 1,005,112 7,000,000 ],010,080 4,968 07/24/08 05/15/09 US Treasury Note 3.88% 2.30% 1,004,407 1,000,000 1,010,080 5,673 0827/08 06/30/09 US Treasury Note 4.88% 2.09 % 2,022,598 2,000,000 2,036,800 14,202 0828/08 07/31/09 US Treasury Note 4.63 % 2.13 % 2,024,337 2,000,000 2,0_4_1,640 17,303 1126/08 08/31/09 US Treasury Note 4.00% 0.73% 2,037,653 2,000,000 2,040,400 2,747 12/1S/OS 09/I 8/09 US Treasury No[e 3.38% 0.29% 1,019,109 1,000,000 ],017,890 (1,219) 1126/08 09/30/09 US Treasury Note 4.00% 0.69% 1,021,853 1,000,000 1,023,200 1,347 ___ 12!18 / 0 8 10/15/09 US Treasury Note 3.38% 0.30% 1,021,612 1,000,000 1,020,200 (1,412) ____ _ _ _ 12/15/08 10/31/09 US T sury Note rea __ 3.63% __0._40% 1,023,994 1,000,000 1,023,010 (984) 12/18/08 11/30/09 _ __________ _ _ US Treasury Not e A __ 3. t3% _ 0.32% _ _ 2_,_046,389 ~ _2,000,000 2,042,820 (3,569) 12/19/08 12/15/09 __ _ _ US Treasury Note 3.50% _ 0.24% 1,028,354 1,000,000 1,025,660 (2,694' _ 7/12/09 0 12/15/09 US Treasury Note 3.50% 0.36% 1,027,277 1,000,000 1,025,G60 (1,617) _ _ __ 01/12/09 01/15/10 US Treasury Note 3.63% 0.30% 2,063,422 2,000,000 2,058,760 (4,662) _ 01/12/09 02/15/10 US Treasury Note 6.50% 0.44% 2,125,595 2,000,000 2,121,320 (4,275) 01/12/09 03/31/10 US Trcasury Note 1.75% 0.36% 2,032,302 2,000,000 2,026,100 (6,202) 34,009591 33,500,000 - 34,039,990 30,399 ana ed Portfolio Total M 59 792 446 59 193 86 59 926 248 133 802 _ Average Vield 1.14°/. ________ Average Length to Maturity (in years) 0.54 _____ __ _ TRUST PORTFOLIO (KESTER TRUST) __ _ _ __ __ __ CASH _ _ A ~ -_-- _ __._ _- ____ __ 01/31/09 Welis Institutional Money Mki Acct 0.59% 0.59% 48,203 48,203 _ _48,203 O Total Trust Portfolio ~ 48 03 48 03 48 203 O BOND RESERVE PORTFOLIO Bond Reserve Acct Ambac Assurance Security Bond __ I 1 1 _ Bond Payment Acct We115 Treasury Plus Money Mkt. _ 0.00% 0.00% O O O O _ __ Total Bond Reserve Portfolio O O O O 5-4 Rate of Return Comparison a.so% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% o.ao% -w-LAIF -I-CUpvikw 5-5 'COMPLIANCE WITH INVESTMENT POLICY --._ _ - - - City of Cupertino January 31 2009 Category Standard Comment Treasury Issues No limit _ _ _ Complies US Agencies Medium Term Corporate Bonds LAIF Money Market Funds No limit j 30% with A rating _ _ - ---- $40 million 20% Complies Complies _ __ Complies --- Complies Maximum Maturities Up to 5 years Complies Per Issuer Max 1 O% (except for Treasuries and US Agencies) : Complies Bankers Acceptances Commercial Paper __ -- Negotiable Certificates of Deposit 180 days 8c 40% i 270 days 8c 25% f __ _ _ __ _ 30% Complies ;Complies __ _ Complies Repurchase Agreements 365 days ______ Complies _ Reverse Repurchase agreements Prohibited Complies 5-6 City of Cupertino General 13und Budget Report January 31, 2009 Bud et Actual 2007/08 2008109 1/3ll2008 1/31/2009 Anal is of Trends Taxes: Sales Tax 14,190,000 13,390,000 7,494,315 9,524,437 True- sladvances hi er, but real #'s down Pro erty Tax 6,110,000 7,010,000 3,770,291 4,194,715 Sustained growth this year; but not as strop nxt yr Transient Occu ancy 2,660,000 2,660,000 1,482,146 1,392,432 I7.32% down in last 3 months Utfli Tax 3,240,000 3,300,000 1,520,364 1,495,516 Ener downturn offsets telecom increase Franchise Fees 2,580,000 2,630,000 152,993 763,561 Other Taxes 1,400,000 1,500,000 878,079 658,126 Pro erty transfer tax down Licenses and Permits 3,030,000 2,980,000 1,622,217 1,598,473 Construction activity down Use of Money & Pro erty 2,100,000 1,267,000 996,602 688,585 Portfolio shift to safety Intergovemmenta] 4,509,871 4,563,892 2,412,091 2,399,016 Char es for Services 1,151,685 1,468,000 656,406 842,120 Senior Ctr ' s Fines & Forfeihues 800,000 820,000 300,236 339,100 Ofherltevenue 116,200 100,000 50046 41,453 Total Revenue U 9% thm Jan; ex ect to be flat b ear end 0 eratin Ex enditures: Administrative 1,499,095 1,483,395 810,490 841,237 Law Enforcement 7,982,421 8,380,671 4,491,063 4,844,634 Matches bud et increase Public & Environ. Affairs 1,275,848 1,510,373 639,605 809,192 Ci Chamrel, curve Administative Service 4,540,611 4,256,429 2,408,038 2,034,563 No elections this eaz Recreation Service 3,910,044 4,397,466 2,029 07 2,001,368 Commum Develo meat 3,722,479 4,151,724 1,947,969 1,798,302 Contract lap checking down Public Works 11,032,844 11,652,062 5 805,450 6 078,561 Total enditures U 2%; ex ect bud et savings b year-end Transfers In 1,300,164 270,000 644,581 40,810 Resource Recovery, CIP savin s last year TransfersOut -18 334,750 -7,110,000 •14128,000 -4141,620 Corridor Park last yeaz Net Gain/ Loss N J Sales Tax Projections vs. Actual $12,000 v C A 0$10,000 L F- w $8,000 w o $6,000 ~ $4, 000 $2,000 $O ' _- ~~ -~ -Projected, per current budget ---i-- Actual 11 /08 12/08 1 /09 Month Property Tax Projections vs. Actual $4,500 v $4,000 ,L $3,500 ..> $3,000 c $2,500 0 L $2,000 ~v > $1,500 $1,000 $500 $O i -~- Projeded, per current budget -+ Actual 1 1 /08 12/08 Month 1 /09 5-8 Transient Occupancy Tax Projected vs. Actual ,,, 1, 600 v 0 z r 1 ,200 m 0 800 m r 400 O ~ ~ - ~- -Projected, par current budget ~ Actual 1 1 /08 12/08 1 /09 Month Licenses ~ PEarmits Projected vs. Actual „~ 2,000 i= a F 1,000 i R O ~_ ~ _._ ~~ _~ •- ~ ~"" ~' ~~ ~~ -~-Projected, per current budget ---~- Actual 1 1 /OS 12/08 Month 1 /09 5-9 Charges for Services Projected vs. Actual N C A N O N w O d ~ ~~ ~~ a~ ~- ~~ ~~ ~~ ~~ ~~ - ~~ ~~ ~~ -~ -Projected, per current budget -~-~-- Actuat O 11 /08 12/08 1 /09 Month Use of Money ~ Property Projected vs. Actual 1,000 N 3 O L h ~ d R c 500 A m >-- O 1 1 /08 1.aoa 500 -~- Protected, per currant budget t Actual 12/08 Month 1/09 5-10 General Fund Expenditures Projected vs. Actual ~ 25,000 v c ~v s 20,000 ass 15,000 a 0 F-- ,`e 10,000 m 5, 000 O ~~ . ~- -~ -Projected, per current budget -F Actual 11 /08 12/08 Monti, 1 /09 s-~~