08. Treasurer's reportADMINISTRATIVE SERV'ICE5 DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE ~ CUPERTINO, CA 950143255
(408) 777-3220 • FAX {408) 777-3109
SUMMA:f~Y
Agenda Item No. O
SUBJECT AND ISSUE
Meeting Date: May 5, 2009
Accept the Treasurer's Investment and Budget Report for March 2009, including a report
on General Fund Revenues and Expenditures.
BACKGROUND
Investments
The market. value of the City's portfolio totaled $54.96 million, with a book value of
$54.86 million at March 31, 2009. The $0.1 million unrealized gain reflects the higher
pricing placed on federal agency notes bought ni previous months at interest rates higher
than those currently available. The portfolio's March yield of 1.04% was down from 1.07%
in the previous month and 3.10% a year ago dut; to the decision to take the portfolio to a
safe and liquid mix of investments, primarily U. S. Treasury Securities, given the risk and
volatility of the current market. The LAIF benchmark was at 1.82% for March, down from
1.87% the previous month and 3.78% a year ago, reflective of their move to a higher
percentage of investments backed by the full faith and credit of the Federal Government.
The City's portfolio decreased $1.24 million :from the previous month due to capital
expenditures and the payment for library Monday hours. Investments maturing during the
month included $4 million in Treasuries and $1.98,000 in Certificates of Deposit, which
were offset by the purchase of $3 million in Treasuries. Investments are in full compliance
with City investment policy and State law and are tiered to provide sufficient cash flows to
pay City obligations over the next six months.
General Fund Revenues and Expenditures
Fiscal year-to-date revenues are up 3% from last year as of March 31St. The recession
continues to impact transient occupancy taxes, property transfer taxes, energy utility user
taxes, building permits and interest earnings. Construction activity continues its slump
with developers requesting extensions and phase:-in plans for approved projects. Property
taxes, charges for services (engineering fees & recreation revenues) and fine revenues, are
s-~
Treasurer's Investment and Budget Report
May 5, 2009
Page 2 of 2
withstanding the economic downturn. Although our sales tax looks promising, the increase
is due to the fiscal year 07/08 State "true up". Actual revenues in both the retail and
business-to-business sectors are declining across the board. Year-end revenues are now
forecasted to be below current budget and 1% below last year's results. Year-to-date
expenditures are down 2% from last year. With a budgeted 6% increase for General Fund
programs, some year-end budget savings can be expected to help offset the revenue
weakness.
RECOII~~NDATION
Accept the Treasurer's Investment and Budget Report for March 2009, including a report
on General Fund Revenues and Expenditures.
Submitted by: Approv'e`d for submission:
~~
~~.~ a~ ~.~1~
Carol A. Atwood David W. Knapp
City Treasurer City Manager
s-z
City of Cupertino
Investment Portfolio
March 31, 2009
_-'..~-~);S"Z'T~~T1Z5f>-- ~'1CT6-" o Maturi ~'~L~ E-`
~_
SECURTTTES MATURED _ _
_ _10/15/08
__._ 03/05/09 US Treasury Bill _
0.6(1% 0.61% _
1,000,000 ^~ 1,000,00_0 1,000,000
~ 0
10/15/08 03/12/09 US Treasury Bill 0.6(1% 0.61% 1,000,000 1,000,000 1,000,000 0
10115/OB 03/19/09 US Treasury Bill 0,6(1% 0.61Y° 1,000,000 1,000,000 1,000,000 0
03/10/06 03/31/09 US Treasury Note _
___. 4,5(1% 1.44% 1,000,000 1,000,000 1,000,000 0
03/17/04
03/17/09
Peoples State Bank
3.4(1%
3.40%
99,000
99,000
99,000 _
0
03/24/04 03/24/09 Washita State Bank, Burns Flat OK 3.35% 3.35% 99,000 99,000 99,000 0
SECURTI'IES PURCHASED
03!30/09 04/IS/]0 USTrcasuryNote 4.0(1% 0,60% 3,105,659 3,000,000 3,105,930 271
CITY PORTFOLIO y~ -~ _
CASH _
03/31/09
Wells Fargo -Workers Comp Checking _
- 38,425
38,425
38,425 _
~~0
_
3/31/0
0
9 Wells Fargo -Regular Checking ?68,268 768,268 _ 768_,268 0
_
_
03/31/09 WeIlsFargo-Repurchase Agreements 0.1(1% 0.10% 1,106,170 1,106,(70 1,106,170 0
1,912,863 1,912,863 1,912,863 0
LAiF
03/31/09 LAIF -State Pool 1,8~ % 1.82% 585,218 585,218 585,218 0
CERTIFICATES OF DEPOSIT
12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ 4.8(1% 4.80% 99,000 94,000 100,303 1,303
12/28/05 12/28/10 NaPI Bank of New York City, NY 4.9(1% 4.90% 97,000 97,000 ^_ 97,320 320
196,
0.00 196,000 197,623 1,623
MONE
Y MARKET FUNDS
~ - _
__
~
~ 03/31/09 _
_
We[Is Fargo Government
0.21.%
•
0.28%
121,428
121,428
121,428
0
03/31/09 We1lsFargo 100%Treasury _
0.01.% 0.01% 9,962,904 9,962,409 9,962,909 _~_ 0
10,084,337 10,084,337 _ 10,084,337 0
AGENCY NOTES
01/30/09 06/22/09 PHLD discount note 0.41.% 0,41% 999,055 1,000,000 999,600 ___ 545
01/22/08 08/03/09 FFCB 5.2:i% 2.55% 1,008,987 1,000,000 1,016,250 _ 7,2_63
09/23/06 09/23/09 FFCB _ 2.7(1% 2.57% ___ 1,000,603 1,000,000 1,009,060 _ 8,457
06/25/08 05/07/10 FFCB 4.7:x% 3.38% _ 1,014,486 1,000,000 1,040,000 _ 25,514_
05/07/08 _
06/11/10 FHLB 3.D(I% 2,98% 1,000,240 1,000,000• 1,022,190 _21,950
__ _ 07/28/08 07128
/10 FFCB callable 3.3(1% 3.30% 1,000,000 1,000,000 1,007,810 7,S I0
05127/08 _
08127/]0 FHLB callable 3.3(1% 3.30% 1,000,000 (,000,000 _ _ 1,003,75_0
J _ 3,750
~ Y
_
01/30/09 09/10/10 FHLB S.l:i% 1.33% 1,054,120 1,000,000 1,059,690 _
5,570
~`
05/19/08 11/19/10 FHLB callable _
3.1:x% 3.15% 1,000,000 1,000,000 1,003,130 3,I30
~OZ/11/09 _
02/11/] l FHLMC callable step up 1.31.% 1.76% 1,000,000 1,000,000 1,00!,200 1,200
05/28/OS 02/28/11 FHLB callable 3.4(1% 3.40% 1,000,000 1,000,000 1,003,750 3,750
11,077,491 11,000,000 11,166,430 88,939
8-3
City of Cupertino
Investment PortfoCio
March 3X, 2009
-~cRrnTrt~a o Maturi
US TREASURY SECURTI'IES
__._
10/20/08 04/29/09 US Treasury Cash Management Bill __ 1.20% 1.22°~ 1,498,550 1,500,000 1,499,835 1,285
03/12/08 04/30/09 US Treasury Note 4.50% 1.51% 1,002,423 1,000,000
~~ ~ 1,003,440
µ 1,017
_
07/17/08 05/15/09 US Treasury Note 3.88% 2.06% 1,002,212 1,000,000 1,004,4S0 2,238
_..__.07/24/08 05/15/09 US Treasury Note 3.88% 2.30% 1,001,907 1,000,000 1,004,450 2,543
02/25/09 06/11/09 US Treasury Bill 0,24% 0.249° 999,520 1,000,000 999,640 _ 120
08/27/08 06/30/09 USTreasu
ryNote 4.88% 2.09% 2,013,709 2,000,000 2,022,900 _ 9,191
02/17/09 07/09/09 _
_
US Treasury Bill _ 0.32% 0_.32% 1,998,222 2,000,000 1,998,860 638
0
8
/28/08 07/31/04 US Treasury Note _ __
4.63% 2.13% 2,016,404 2,000,000 2,028,900 12,496
__
_
_
_ i 1/26/08 08/31/09 US Treasury Note 4,00% 0.73% 2,027,174 2,000,000 2,029,840 2,666
12/18/05 09/15/09 US Treasury Note 3.38% 0.29% 1,014,142 1,000,000 1,0(3,590 (552)
1126/08 09/30/09 US Treasury Note 4.00% 0.69% 1,016,525 1,000,000 1,017,770 1,245
12/18/05 10/15/09 US Treasury Note 3,38% 0,30% 1,016,651 ],000,000 1,015,700 (951)
12/(5/08 10/31/09 _
US Treasury Note 3.63% 0.40% 1,018,809 1,000,000 1,018,090 (719)
I7J18/08 1(/30/09 US Treasury Note 3.13% 0.32% 2,037,356 2,000,000 2,034,600 (2,756)
_ _
12/i9/O8 12/15Po9 ~
US Treasury Note 3.50% 0.24% 1,023,093
~ 1,000,000 1,020,900 (2,193)
01/12/09 12/15/09 US Treasury Note 3.50% 0.36% 1,022,216 1,000,000 1,020,900 (1,316)
~
01/12/09 Ol/15/10 US Treasury Note 3.63% 0.30% 2,052,700 2,000,0_00 2,048,200 (4,500)
01/12/09 02/15/10 US Treasury Note 6.50% 0.44% 2,106,095 2,000,000 2,102,500 (3,595)
01/12/09 03/31/10 US Treasury Note 1.75% 0.36% 2,027,808 2,000,000 2,022,580 (5,228)
03/30/04 04/15/10 US Treasury Note 4.00% 0.60% 3,105,659 3,000,000 3,105,930 271
31,001,174 30,500,000 31,013,075 11,901
Total Managed Portfolio 54 57 083 54 278 418 54 959 546 102 463
Average Yield 1.04°k
Average Length to Matarity (ia years) 0.55
TRUST PORTFOLIO (KES"fER TRUST)
CASH
03/31/09 __
Wells Institutional Money Mkt Acct
0.34%
0.34%
48,254
48,254
48,254
0
Total Trust Portfolio 48 254 48 254 48 254 0
BOND RRSERVE PORTFOLIO
Bond Reserve Acct ~ Ambac Assurance Security Bond I 1 1
Total Bond Reserve Portfolio 0 0 0 0
8-4
Rate of Ret~Ern Comparison
4.00°~
3.50%
3.00%
2.50°~
2.00%
i.50°~
1.00°~
0.50%
0.00%
ttnF
--~-cupntlro
8-5
COMPLIANCE WITH INV ESTMENT POLICY
City of Cupertino
March 31, 2009
Category Standard Comment
_ _ _ _ _ ____
Treasury Issues No limit Complies
US Agencies
Medium Term Corporate Bonds No limit
30% with A rating Complies
Complies
__
LAIF $40 million Complies
Money Market Funds 20% _ __ __ ____ Complies
Maximum Maturities Up to 5 years__ Complies _ _
Per Issuer Max
Barilcers Acceptances _ _.._ . .......... . .........
Commercial Paper 10% (except for Treasuries and US Agencies)
180, days & 40% ... _. _...._.._.__._~.
270 days & 25% Complies
Complies.... _
Complies
Negotiable Certificates of Deposit _ _ _ _ _~
30% __ ____ _ _ Complies
Repurchase Agreements 365 days `Complies _
Reverse Repurchase agreements Prohibited Complies
a-s
City of Cupertino
General Fund Budget Re ort
March 31, 2009
Bud et Act ual
2007/08 I 2008/09 3/31/Z008 3/31/2009 ~ Anal sis of Trends
Taxes:
Sales Tax 14,190,000 ~ 13,390,000 8,518,560 9,810,829 True-u s/advances hi er, but real #'s down
Pro a Tax 6,710,000 7,010,000 4,296,02$ 4,781,860 Growth this eaz; not as stro next yr
Transient Occu anc 2,660,040 2,660,000 1,838,356 1,638,944 17-32% down in last 3 months
Utili Tax 3,240,000 3,300,000 2,101,870 1,961,453 Ener usage down
Franchise Fees 2,580,000 2,630,000 1,050,102 1,070,148'
Other Taxes 1,400,000 1,500,000 1,091,090 775,527 Pro rry transfer tax down 40%
Licenses and Permits 3,030,000 2,980,000 2,016,135 1,894,867 Construction downturn
Use of Mone & Pro a 2,100,000 1,267,000 1,457,507 947,967 Lower rates; holdin more Treasuries
Inter overnmental 4,509,871 4,563,892 2,470,197 2,426,420
Ch es for Services 1,151,685 1,468,000 865,482 1,068,701 Encroachment permits, Senior Ctr tri s u
Fines & Forfeitures 800,000 820,000 422,537 469,505
Other Revenue 116.200 100.000 62.607 52.650
Total Revenue U 3% thru March; Down 1% b ear end
O eratin Ex enditures:
Administrative 1,499,095 1,483,395 1,007,732 936,736 City Attome vacanc
Law Enforcement 7,982,421 8,380,671 5,765,805 6,174,216 Per contract
Public & Environ. Affairs 1,275,848 1,512,796 849,763 1,020,543 City Channel a ui re 1; surve ;administration
Administrative Service 4,540,611 4,254,006 2,937,220 2,492,408 Elections, insurance, city clerk, code lower
Recreation Service 3,910,044 4,397,466 2,725,533 2,529,425
Communi Develo meat 3,722,479 4,157,724 2,526,109 2,263,097 Contract tan checking down
Public Works 11 032,844 11,652,062 7,516,498 7,475,159
Total E enditures ' Down 2% thru March; a ect bud et savin s
I
Transfers In 1,300,164 270,000 672,660 252,470 Resource Recovery, C1P savin s last ear
Transfers Out -18,334,750 -7,110,000 -13 512,750 -5,324,940 Corridor Park last year
Net Gain/ oss - ~ ,
x$12,000
n
0$10,000
,,. $8,000
ro
~ $6,000
d
~' $4,000
$2,000
$0
Sales Tax Projections vs. Actual
--~ -Projected, per current budget - . ~
~-Actual / /~
_~~
10/08 11/08 12!08 1/09
Month
a
2109 ' 3/09
- Property Tax Projections vs. Actual
x $6,000
x
c $5,000
«, $4,000
o $3,000
~ $2,000
$1,000
$0
~~
/
i
--~ -Projected, per current budget
-~--Actual
10108 11!08 12/08 1/09 2/09 3109
Mordh
8-8
Transient Occuipancy Tax Projected vs. Actual
,~ 2,000
9
qC
7
O
~ 1,600
d 1,200
A
0
b
ti
~ 800
400
0
, ~'
~~
1
~~
r
--~ -Projected, per current budget
+Actual
10/OS 11/08 12/il8 1/09 2/09 3/09
Month
Licenses 8 I~ermits Projected vs. Actual
~ 3,000
w ~ 2,000
s 1,oao
0
~.
1
~--
f.~r
..-
^------
r -r -Projected, per current budget
-ta- Actuaf
10/08 11108 12/0/3 1109 2109 3/09
Month
8-9
Charvges for Services Projected vs. Actua!
$ 1,500
0
e ~ 1,000
Q
H
A
r 500
0
_ __
~~ r ~
~ r, ~„~ 1
.~ l
~~ ~`
~. r --
1
•,.. `~ ~ --~ -Projected, per current budget
--E-Actual
10108 11 /08 12108 1 /09 2/09 3/09
Month
~ 1,000
0
w
500
0
-_. Use of Money 8 Prop®rty Projected vs. Actual
~~
1
--~ -Projected, per current budget
--~-Actual
10/08 ' 11/08 12/08 1109 2/09 3/09
Month
8-10
General Fund Expenditures Projected vs. Actual
a 30,000
v
c
~ 25,000
o .
~, 20,000
m
15,000
~ 10,000
5,000
0
i~
_~
r ''
~~
,rr
~~
.r ~
r
~ -Projected, per current budget
-~-Actual
10/08 11/08 12/08 1/09 2/09 3/09
Month
8-11
8-12