05. Treasurer's ReportADMINISTRATIVE SERVICES DEPARTMENT
CUPERTINO
CITY HALL '
10300 TORRE AVENUE • CUPERTiNO, CA 950143255
(408) 777-3220 • FAX (408) 777-3109
SUMMARY
Agenda Item No. ,J
SUBJECT AND ISSUE
Meeting Date: June 2, 2009
Accept the Treasurer's Investment and Budget Report for Apri12009, including a report on
General Fund Revenues and Expenditures:
BACKGROUND
Investments
The market value of the City's portfolio totaled $56.2 million, with a book value of $56.1
million at April 30, 2009. The $0.1 million wirealized gain reflects the higher pricing
placed on federal agency notes bought in previous months at interest rates higher than those
currently available. The portfolio's April yield of 0.98% was down from 1.04% in the
previous month and 2.99% a year ago due to the decision to take the portfolio to a safe and
liquid mix of investments given the risk and volatility of the current market. The LAIF
benchmark was at 1.61% for April, down from l.$2% the previous month and 3.40% 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 increased $1.23 million from the previous month due to property tax,
sales tax, and franchise fees collected. Investments maturing during the month included
$2.5 million in Treasuries, which were offset by the purchase of $2.5 million in Treasuries.
Investments are in full compliance with City inve;stment policy and State law and are tiered
to provide sufficient cash flows to pay City obligations over the next six months.
Please note that last month's Treasury Investment Report was understated by $60,000 in
cash. This amount has been reconciled and brought to the attention of the auditors in
conjunction with their interim field reviews.
General Fund Revenues and Expenditures
Fiscal year-to-date revenues are up 1% from lest year as of April 30~'. The recession
continues to impact transient occupancy taxes, property transfer 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 withstanding the economic
5-1
Treasurer's Investment and Budget Report
June 2, 2009
Page 2 of 2
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 resul#s. Year-to-date expenditures are up 1 %. over the
prior year. When compared to a budgeted 6% increase for General Fund programs, some
year-end budget savings can be expected to help offset the revenue weakness.
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for Apri12009, including a report on
General Fund Revenues and Expenditures.
Submitted by:
C of A. Atwood
City Treasurer
Approved for submission:
/~~
David W. Knapp
City Manager
5-2
City of Cupertino
Investment Portfolio
April 30, 2009
"'~
X17: o Mature C~33`rt'`-"-' VAT.
SECURIIIES MATURED
10/20/08 04/29/09 US Treasury Cash Management Bill 1.20% 1.22% 1,500,000 1,500,000 1,500,000 -0
03/12/08 04/30/09 US Treasury Note 4.50% 1.51% 1,000,000 1,000,000 1,000,000 ~ 0
SECURITIES PURCHASED
04/30/09- 06/30/10 US Treasury Note - 2.88% 0.50% 2,569,141 2,500,000 2,567,275 (1,866)
CITY PORTFOLIO i
- ~ ^~-
CASH - ._..,___.._ .__....__.
04/30/09 Wells Pargo -Workers Comp Checking 21,500 21,500 21,500 0
04/30/09 Wells Fargo -Regular Checking _
94
1,452 _ ____
941,45
2 941,452 0
04/30/09. Wells Fargo -Repurchase Agreements 0.10% 0.10% _
795,538 _
_
795,538 795,538 0
1,758,490 1,758,9911 1,758,490 0
LAIF - ------ -- __._._
04/30/09 LAIF-State Pool 1.61% 1.61% 587,959 _ 587,959 587,959 0
T
CERTIFICATES OF DEPOSIT
___. T
12/30/05 12/30/09 Meridian Bank NA,WickenburgAZ_ 4.80% 4.80% 99,000 ~- 99,000 100,905 1,905
12/28/05 12/28/10 Nat'I Bank of New York City, NY - __
____ 4.90% 4,90% _ ____
~ 97,000 97,000 __
98,348 1,348
~
_ __ 196,000 196,000 199,253 3,253
MONEY MARKET FUNDS ~~^
04/30/09 Wells Fargo Government 0.1 B% 0.18% 121,428 121,428 121,428 _ V 0
04!30/09 Wells Fargo 100%Treasury 0.0]% 0.01% 11,346,581 11,346,581 11,346,581 0
____
-- 11,468,009 11,468,009 11,468,fl09 0
AGENCY NOTES ~ - - ~~-~~~--
01/30/09 06/22/09 FHLB discount note 0.41% 0.41% 999,346 1,000,000 999,900 504
01/22/08 08/03/09 FFCB S.2S% 2.55% 1,006,830 1,000,000 1,012,810 5,980
09/23/08 09/23/09 FFCB 2.7~% 2.57% 1,000,500 1,000,000 1,009,690 9,190
_ 06/25/08 05/07/10 FFCB 4.75% _
3.38% 1,013,405 1,000,0(!0 1,038,750 25,345
05!07/OH 06/11/10 FHLB _
3.0'0% 2.98% _
],000,223 1,000,000 1,013,130 12,907
07/28/08 07/28/10 FFCB callable _
3.30% 3.30% ],000,000 1,000,000 .1,006,250 6,250
05/27/08 _08/27/10
~ FHLB callable _ 3.30% 3.30% 000,000
1, 1,000,000 1,001,880 _
1,880
01/30/09 09/10_/10_ FHLB __
v 5.1.3% 1.33.% _
_
1,051,04
5 1,000,000 (,057,810 _
T
6,765
05/19/08 11/19/10 FHLB callable 3.1.5% 3.15% _ _
_
_
1,000,000 1,004,000 _
1,001,250 _______
1,250
02/1 t/09 02/11/11 FHLMC callable step up
~- 1.3 g% 1.76% 1,000,000 1,000,000 1,002,120 2,120
05/28/08 02/28/11 FHLB callable 3.41% 3.40% 1,000,000 1,000,000 1,002,190 2,190
____
11,071,400 11,000,000 1],145,780 74,380
_ 5-3
City of Cupertino
Investment Portfolio
April30, 2009
~E~CR7l~'I'IO o Mahui
US TREASURY SECURITIES
~
07/17/08 05/15/09 US Treasury Note 3.88% _2.06% _ .1,000,737 1,000,000 1,001,450 713
4/08
07R __
05/15/09 US Treasury Note 3.88% 2.30% 1,000,636 1,000,000 __ 1,001,450 814
_ _ _
_
02/25/09 _
~ 06/11/09 US Treasury Bill 0.24% 0.24% 949,720 1,000,000 999,930 __ 2]0
08/27/08 06/30/09 reasury Note
U5 T 4.88% 2.09% 2,009,190 2,000,000 •2,015,620 6,430
_
02/17/09 07/09/09 _
US Treasury
Bill 0.32% 0.32% ],498,755 2,000,000 1,999,b20 865
._
08/28/08 07/31/09 _
US Treasury Note 4.63% 2,13% 2,012,370 2,000,000 2,022,340_ 9,970
11!26/08 08!3.1/09 US Treasury Note _
4.00% __0.73% __ _2,021,846
~ 2,000,000 2,025,240
T 3,394
12/18/08 09/15/09 US Treasury Note _
3.38% 0.29% _i,011,617 1,000,000 1,011,720 103
__
11/26/08 09/30/09 _
US Treasury Note 4.00% '0.69% 1;013,816 1,000,000 1,015,550 1,734
_ __
12/18/08 10/15/09 _
US Treasury Note 3.38% 030% 1,014,128 1,000,000 1,014,020 (108)
_
12/15/08 ~10/31/09 US Treasury Note 3.63% 0.40% 1,016,172 1,000,000 1,016,330 158
12/18/08 11/30/09 US Treasury Note 3.13% 032% 2,032,763 2,000,000 2,032,100_ _ '__ (663)
_
12/19/08 12/15/09 _
US Treasury Note 3.50% 0.24% 1,020,418 1,000,000 1,019,570 (848)
01/12/09 12/15/09 US Treasury Note 3.50% ^0.36% 1,_019,643 1,000,000 __ 1,019,570 (73)
01/12/09 O1/15/]0 _
US Treasury Note __
3.63% 0.30% 2,047,249_ 2,000,000__ _ 2,045,780 (1,469)
01/12/09
! 02/15/10 _
US Treasury Note ~ 6.50% 0.44% 2,096,180_ _ _ 2,00_0,000
~_ 2,095,460 (720)
_
___ _
01/12/09 _
03/31/10 US Treasury Note 1.75% 03b% 2,025,522 2,000,000 2,023,120 (2,402)
03/30/09 __
04/15/10 ury Note_
U5 Treas 4.00% 0.60% 3,097,318 3,000,000 3,101,490 4,172
04/30/09 06/30/10 _
_
U5 Treasury Note 2.88% 0.50% 2,569,141 2,500,000 2,567,275 (1,866)
~-~
- -~-
~. _
- 31,007,219 30,500,000 3],027,635 20,416
Total Mana ed Portfolio 56 089 U77 55 10 458 56 187 126 98 049
Average Yield 0.98% __
v _______
Average Length to Maturity (io years) _ 0.53
TRUST PORTFOLIO (KESTER TRUST) _
___
CASH ____ _ _
M
04/30/09 Wells Institutional Money Mkt Acct ~0.29% 0.29% 48,270 48,270 48,270 0
Total Trust Portfolio 48 70 48 70 48,270 0
BOND RESERVE PORTFOLIO
~ ------ ____._.
Bond Reserve Acct Ambac Assurance Security Bond 1 1 1
Total Bond Reserve Portfolio 0 0 0 0
5-4
Rate of Return Comparison
3.509/0
3.00%
2.50%
2.00%
1.50%
1.00%
0,50%
0.00%
5-5
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino '
Aril 30, 2009
Catego~ Standard Comment
Treasury Issues No limit Complies
US Agencies No limit Complies
Medium Term Corporate Bonds 30% with A rating Complies.
LAIF $40 million Complies
Money Market Funds 20% Compiies
Maximum Maturities ~ Up to 5 years Complies
Per Issuer Max 10% (except for Treasuries and US Agencies) Compiies
Bankers Acceptances 180 days & 40% Complies
Commercial Paper 270 days & 25% Complies
Negotiable Certificates of Deposit 30% Complies
Repurchase Agreements 365 days Complies
Reverse Repurchase agreements Prohibited Complies
5-6
City of Cu ertino
General Fund Budget Re ort
Apri130, 2009 f
Bud et Actual
2007/08 2008/09 4/30/2008 ~ 4/30!2009 Anal sis of Trends
Taxes:
Sales Tax 14,190,000 13,390,000 9,718,898 1 10,606,796 True-u s/advances hi er, but real #'s down
Pro a Tax 10,604,000 ' 11,080,000 8,071,621 8,968,651 Growth this year; not as strong next yr
Transient Occu ancy 2,660,000 1 2,660,000 2,031,829 1,770,740 Down since Nov 08
Utili Tax 3,240,000 3,300,000 2,349,018 2,333,632 '
Franchise Fees 2,580,000 2,630,000 2,143,278 2,217,421
Other Taxes 1,400,000 ~ 1,500,000 1,195,115 843,857 Pro eriy transfer tax down
Licenses and Permits 3,030,000 2,980,000 ' 2, i 79,245 2,067,255 Construction downturn
Use of Mone & Pro a 2,100,000 1,267,000 1,500,441 1,003,984 Lower rates; holdin more Treasuries
Inter overnmental b 15,871 493,892 547,513 309,653 COPS reed trly; VLF- lower
Char es for Services 1,151,685 1,468,000 1,053,171 1,093,0401
Fines & Forfeitures 800,000 820,000 488,091 527,641
Other Revenue 11&;200 100;000 &5;557 48;0841
Total Revenue I U 1 % thru A ril; down 1 % by ear end
O erating Ex enditures:
Administrative 1,499,095 1,483,395 1,090,719 1,026,878 City Attorney office vacancies
Law Enforcement 7,982,421 8,380,671 ~ 6,405,297 6,838,731 Increased de uty, detective services
Public & Environ. Affairs 1,275,848, 1,512,796 927,643 ~ 1,176,319 City Channel a ui re 1; environ affairs; admire
Administrative Service 4,540,611? 4,254,006 3,140,687 2,994,001 Elections, city clerk lower
Recreation Service 3,910,044 4,397,466 2,902,76& 2,837,266
Communi Develo ment 3,722,479 4,157,724 2,735,928 2,518,745 Contract lan checkin lower
Public Works 11,032,844 11,652 062 1 8,072,019 8,218,136
Total Ex enditures , U 1% thru A r; ex ect ear-end budget savin s
Transfers in 1,300,164 270,000) 741,828 258,300 Resource Recovery, CIP savin s last ear
Transfers Out -18,334,750 -7,110,000 -14,826,750 -5,916,600 Corridor Park last year
Net Gain/ Loss ~
Sales Tax Projections vs. Actual
$12,000
$1o,oao
0
~ $8,000
0
$6,000
t
} $4,000
$2,000
$0
-~-- Projected, per current budget
-~ Actual
~~
r
~--
-/
10/08 11/08 12/08 1/09 2109 3/09 4/09
Month
Property Tax Projections vs. Actual
$10,000
$9,000
$8,000
$7,000
o $6,000
$5,000
$4,000
d
~- $3,000
$2,000
$1,000
$0
-~-- Projected, per current budget
-~-Actual
10/08 11/08 12108 1109 2109 3/09. 4109
Month
5-8
Transient Occupancy Tax Projected vs. Actual
y 2,400
~o
c
~ 2,000
a
w ~ 1,600
R
1,200
d 800
r
400
0
r
~-
r
-•- Projected, per current budget
-++-Actual
10/08 11/08 12/08 1/09 2/09- 3109 4109
Month
Licenses ~ Permits ',Projected vs. Actual
,~ 3,000
m ~ 2, 000
0
0
t-
1,000.
0
~~~~
-~- Projected, per current budget
--f-Actual
10/08 11!08 12108 'I/09 2109 3/09 4/09
N{onth
5-9
Charges for Services Projected vs. Actual
N 1,500
v
N
7
1,000
R
0
m 500
~ .
0
~ ~" ' ~
rr -~-- Projected, per current budget
t Ac#ual
10108 11/08 12/08 1/09 2/09 3/09 4/09
Month
Use of Money 8 Property Projected vs. Actual
N 1, 500
~a
c
R
r ~ 1,000
a
a
500
0
--.
r
._ ._r
-~- Projected, per current budget
-~-Actual
10/08 11108 12/08
1109 2/09 3109 4109
Month
5-70
General Fund Expenditures Projected vs. Actual
~, 35,000
30,000
m ~ 25,000
.o
20,000
15,000
~ 10, 000
5,000
0
~~
~ ~
r --~--- Projected, per current budget
--tt--Actual
10108 11/08
12/08 1 /09
IlAonth
2/09 3109 4109
5-11