05. Treasurer's Report ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10300 TORRE AVENUE: • CUPERTINO, CA 950143255
C O P E RT I N O (408) 777-3220 • FAX (408} 777-3109
SUMMARY
Agenda Item No. S Meeting Date: August 4, 2009
SUBJECT AND ISSUE
Accept the Treasurer's Investment and Budget 1<:eport for June 2009, including a report on
General Fund Revenues and Expenditures.
BACKGROUND
Investments
The market:value of the City's portfolio totaled $55.6 million, with a book value of $55.5
million at June 30, 2009. The $0.1 million unre~~lized gain reflects the higher value placed
on securities bought in 2008 and early 2009 at higher interest rates. The portfolio's June
yield of 0.74% was down from 0.77% in the previous month and 2.86% a year ago due to
the decision to take the portfolio to a safe and li~~uid mix of investments, given the risk and
volatility of the market. The LAIF benchmark was at 1.38% for June, down from 1.53%
the previous month and 2.89% a year ago, reflective of their similar move to a higher
percentage of investments backed by the full faith and credit of the federal government.
The City's portfolio decreased $2.7 million fron? the previous month due to operating and
capital expenditures. These expenditures, netted against $4 million in matured and called
Treasuries and Agency Notes, provided cash flow to purchase $2 million of new short-term
Treasuries. Investments are in full compliance ~Nith 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 even with prior ~~ear revenues before year-end adjustments.
The recession continues to impact transient occupancy taxes, property transfer taxes,
vehicle license fees, construction-related fees, acid interest earnings. Construction activity
continues its slump with developers requesting extensions and phase-in plans for approved
projects. Property taxes, based on last year's market, are withstanding the economic
downturn. Although our sales tax Looks strong, the increase is due to the way that the state
passes on the taxes to the city, a method which lags the actual receipts remitted by
businesses to the state. 2007/08's strength is showing up on the city's books this year, but
current sales taxes reported to the state are down 10% this year, led by declines in both the
retail and business-to-business sectors.
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Treasurer's Investment and Budget Report
August 4, 2009
Page 2 of 2
Year-to-date expenditures are up 4% from last year, but with a budgeted 6% increase for
General Fund programs, some year-end expenditure savings can be expected.
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for June 2009, including a report on
General Fund Revenues and Expenditures..
Submitted by: Approved for submission:
~~I~~iJY`--
Carol A. Atwood David W. Knapp
City Treasurer City Manager
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City of Cupertino
Investment Portfolio
June 30, 2009
~6E3~RIPT -l~ATI: o Mature ~1FC5F13Ylf5SS_
SECURITIES MATURED ~ -
O1/30/09 06/22/09 FHLB discount note 0.41% 0.41% 1,000,000 1,000,000 1,000,000 0
_ 02!25/09 06/l 1/09 US Treasury Bill 0.24% 0.24% 1,000,000 1,000,000_ _ 1,000,000_ 0
08/27/08 06/30/09 US Treasury Note 4.88% 2.09% 2,000,000 2,000,000 2,000,000 ~ ~ 0
SECURITIES PURCHASED ~ ~ _ _ _
06/24/09 05/31/10 U5 Treasury Note 2.63% 0.40% _ ___1,020,336 1,000,000 1,019,340 _ ` - (996)
0629/09 OS/31/10 US Treasury Note 2.63% 0.38% 1,020,522 1,000,000 1,019,340 - _ (1,182)
CITY PORTFOLIO
CASH _
06/30/09 Wells Fargo -Workers Comp Checking 19,671 _ 19,67 i 19,671 _ 0
06/30/09 We}1sFargo-Regular Checking 761,125 _ _ _7_61,125 761,125 0
06/30/09 Wells Fargo -Repurchase Agreements 0.10% 0.10% 621,533_ _ 621,533 621,533 0
_ 1,902,329 1,402,329 1,402,329 0
LAIF
06/30/09 LAIF -State Pool ~ l.3 3% 1.38% 587,959 587,959 _ 587,959 0
CERTIFICATES OP DEPOSIT
12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ 4,80% 4.80% 99,000 99,000 _100,749 1,749
12/28/05 1228!10 Nat'l Bank of New York City, NY 4.90% 4.90% 97,000 97,000 99,634 2,634
_ 196,OOU l9G,O1t0 200,383 4,383
MONEY MARKET FUNDS _ 4 M
06/30/09 Wetts Fargo Government 0,1:3% 0.13% ~ 1,184,688 1,184,688 1,184,688 0
_ _ 06/30/09 WellsFargo_ 100%Treasury O.Of% 0.01% 8,983,950 _ _ 8,983,950 8,983,950 0
10,1G8,638 ]0,168,b38 1fl,168,638 0
AGENCY NOTES
0122/08 08/03/09 FFCB A r _ 5.2:i% 2.55% 1,002,444 1,000,000 1,004,380 _ _ 1,93_6_
09/23/08 0923/09 FFCB 2.71)% 2.57% 1,000,291 1,000,000 1,005,630 5,339
0625/08 05/07/10 FFCB 4.7:i% 3.38% 1,011,207 ____1,000,000 1,035,940 _ 24,733
OS/07/OS 06/11/10 FHLB 3.00% 2.98% 1,000,190 1,000,000_ _ 1,023,440 23,250
__07/28/08 __07128/10 FFCB callable _ 3.3~)% _3._30% 1,000,000 1,000,000__- 1,00_2,1_9_0_ _ 2,190
01/30/09 _ 09/!0110 FHLB Vv__ __5.13% _1.33% 1,044,793 1,000,000 _ 1,055,940___ 11,148
02/1 I/09 - 02/11/11 IFHL.MC callable step rep 1.38% 1.76% 1,040,000 1,000,000 ~ 1,001,130 1,130
7,058,925 _ 7,000,000 7,128,650 G9,725
5-3
City of Cupertino
Investment Portfolio
June 30, 2009
----`~'~1tIP'[T(Sp---- - o Maturit ~f55fi._ ~
US TREASURY SECURITIES
_ 02/17/09 _ 07/09/09 US Treasury Bill 0.32% 0.32% 1,999,840 ~ 2,000,000 ~ 1,999,960 120
^____08/28/08 _ _ 07/31/09 US Treasury Note 4.63% _2.13% _2,004,]68 .2,000,000 2,007,180 3,012
1 ]/26/08 08/31/09_ US Treasury Note 4.00% 0.73% 2,011,012 2,000,000 2,012,340 1,328
12/18/O8 09/1 S/09 US Treasury Note 3.38% 0.29% 1,006,482_ 1,000,000 1,006,450 {32)
11/26/08. 09/30/09 US Treasury Note 4.00% 0.69% 1,008,308 1,000,000 1,009,340 1,032
12/18/08 10/l5/09 US Treasury Note 3.38% 0.30% 1,008,998 -_»1,0_00,000 1,008,950 (48)
12/15/08 10/31/09 US Treasury Note 3.63% 0.40% 1,010,811 1,000,000 1,011,020 209
!2/18/08 11/30/09 US Treasury Note 3.13% 0.32% 2,023,424 2,000,000 _ 2,023,2_00 (224)
12/19/08 ]2/15/09 US Treasury Note 3.50% 0.24% 1,0]4,979 1,000,000 1,014,260 (719)
_01/12/09 12/15/09 US Treasury Note 3.50% 0.36% 1,014,410 1,000,000__ _ 1,014,260 _ (ISO)
01/12/04 01/IS/]0 US Treasury Note 3.63% 0.30% 2,036,163 2,000,000 - 2,034,840 (1,323)
01/12/09 02/15/10 US Treasury Note 6.50% ~ 0.44% 2,076,018 2,000,000 2,075,540 (478)
OLl12/09 03/31/10 US Treasury Note 1.75% 0.36% 2,020,8_75 2,000,000 2,019,220 {1,655)
03/30/09 04/15/10 US Treasury Note 4.00% 0.60% 3,080,357 _ 3,0_0_0,000 3,083,310__ _ _ 2,953
06/24/09 OS/31/l0 US Treasury Note 2.63% 0.4_0% 1,020,336 1,000,000 1,019,340 _ _ {996)
06/29/09 05/31/10 US TreasuryN_ote _2.63% _0.38% _1,020,522 1,000,000 1,019,340 (1,182)
04_/3_0/09 06/30/10 U5 Treasury Note 2.88% 0.50% ~ 2,559,240 2,500,000 2,558,000 (1,240)
_ _ 05/14/09 07/31/10 US Treasury Note ~ 2.75% O.SO% 3,072,909 3,000,000 3,070,200 (2,709)
05/21/09 08!31/10 US Treasury Note ~ 2.38% 0.50% 3,065,447 3,000,000 3,062,220 (3,227)
05/29/09 09/30/i0 US Treasury Note 2.00% 0.62% 2,034,238 2,000,000 2,034,460 222
36,088,538 35,500,000 36,083,430 (5,108
Total Managed Portfolio 55 502 89 54 854 926 55 71 389 69 000
Average Yield 0.74%
Average Length to Maturity (in years) 0.54
- TRUST PORTFOLIO (ICESTER TRUST)
CASH
06/30/09 Wells Institutional Money Mkt Acct 0.20% 0.20% 48,294 48,294 48,294 0
Total Trust Portfolio 48,294 48,294 48 294 0
W____ BOND RESERVE PORTFOLIO
Bond Reserve Acct _ Ambac Assurance Security Bond _ _ 1 1_ 1
Bond Payment Acct _ Wells Treasury Plus Money Mkt 0.01% 0.01% 2,473,197 2,473,197 2,473,197 0
Total Bond Reserve Portfolio 2 473 197 2 473 197 2 473 197 0
5-4
Investments by Type
Managed Portfolio
LAIF Cash
1% 2%
r
Money Market
` ~ 18%
•
r, ~
1.. Y j rw . r "
~ 'a: .r
:CD's
r
1%
e
~.,a: Agency Notes
s
US Treasuries '~t t • ~ "
~ .
3
t ~
.Y
I~~.
Rate of Return ~Camparison
3.00% ~ "
2.50%
2.00%
.50% t LAIF
- -f- Cupeftka
1.00%
0.50%
D.00%
~~o~ ~~oe 9~0~ ~o~o~ ~^~ow ~~o~ ~~o~ ~o~ doe ~~o~ ~Q9 ~`og
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
_
_
3une 30, 2009
Category Standard Comment
Treasury Issues No limit Complies
US Agencies _ No limit Complies _
Medium Term Co orate Bonds 30% with A ratin Com lies
~ _ _ _ g- - _ - _ _ _ P
LAIF $40 million Complies
Money Market Funds 20% Complies
Maximum Maturities Up to 5 years Complies
Per Issuer Max _ 10% (except for Treasuries and US Agencies} ~ Complies
_
Bankers Acceptances 180 days & 40% _ Complies
- If
Commercial Paper 270 days & 25% Complies
Negotiable Certificates of Deposit 30% _ ~ Complies
Repurchase Agreements 365 days _ Complies
Reverse Repurchase agreements Prohibited Complies
5-6
it
City of Cupertino
General Fund Budget Report
6/30/2009 Preliminary
Bud et Actual
2007/08 ~ 2008/09 6/3012008 6/30/2009 Anal sis of Trends
Taxes:
Sales Tax 14,190,000 13,390,000 13,154,749 13,755,300 Actual down 10%; advances/true-u s u 64%
Property Tax 10,604,000 11,080,000 10,787,600 12,084,249 Growth this ear; not as stron next
Transient Occu anc 2,660,000 2,660,000 2,617,770 2,164,854 Down since Nov 08
Utili Tax 3,240,000 3,300,000 3,175,724 3,203,364
Franchise Fees ~ 2,580,000 2,630,000 2,547,439 2,59b,798 '
Other Taxes 1,400,000 1,500,000 1,486,395 1,049,418 Construction & transfer tax down
Licenses and Permits 3,030,000 2,980,000 2,656,017 2,736,593
Use of Mona & Pro erty 2, 100,000 1,267,000 2,015,653 1,129,445 Lower rates; holding more Treasuries
Other Intergovemmental 405,871 283,892 392,697 247,082 COPS: 08 has $76k of rev ; in 09 reed rtrly
VLF Non Swa 210,000 210,000 266,789 171,621 Car sales down; no VLF in Nov, Dec
Intergovernmental 615,871 493,892 659,486 418,703 Retroactive COPS in PY; VLF lower
Char es for Services 1,151,685 1,468,000 1,363,196 1,306,792 En ineerin and Senior Center fees down
Fines ac Forfeitures x00,000 x20,000 722,0x7 70x,540
Other Revenue 116,200 100,000 85,388 54,426
Total Revenue 4 8 41 2 . .
O eratin E enditures: '
.Administrative 1,499,095 1,483,395. 1,351,273 1,334,881
Law Enforcement 7,982,421 8,480,671 7;456,661 8,133,168 Increased de uty, detective services
' Public & Environ. Affairs 1,275,848 1,512,796 1,169,247 1,475,153 City Channel a ui re l; environ affairs; admin
Administrative Service 4,540,611 4,254,006 3,797,156 3,630,934
Recreation Service 3,910,044 4,397,466 3,745,244 3,753,804
Communi Develo ment 3,722,479 4,207,724 3,417,590 3,192,803 Contract lan checkin Lower '
Public Works 11,032,844 11,652,062 10,073,546 10,664,503
Total Ex enditures 010 7
Transfers In 1,304,164 320,000 1,300,164 320,000 Resource Recove , CIP savin s lastyear
Transfers Out -18,334,750 -7,110,000 -18,334,750 -7,I 10,000 Corridor Park last year
ei Net Gain/ oss -8 - -6 7
V '
General fund Expenditures Projected vs. Actual
40,p00
H 35,000 ~ i
d, ~ 30,400 ~
o ~ 25,000. ~ ~
20,000
15 000 - Projected, per current budget
10, 000 - --i-Actual
5, 000
0-
10/08 11 /08 12108 1 /09 2/09 3/09 4109 5109 6/09
Month
5-8
Sales Tax Projections vs. Actual
$16,000
$14,000
~ Projected, per current budget
ro
_ ~
~ _ $12,000 -i-Actual
$1o,aao
o
$8,000
d $6,000
$4,OOO r
$2,000
$o
10/08 11/08 12/08 1/09 2109 3/09 4/09 5/09 6109
Month
Property Tax F~rojections vs. Actual
$14,000
a
b $12,000 Projected, per current budget
N
7
~ $10,000 ~-Actual
m ~
$8,000
0
$6,000
a
} $4,000
$2,000
$0
10/08 11/08 12/08 1109 2109 3109 4/09 5/09 6/09
Month
5-9
Charges for Services Projected vs. Actual
2,000
a, 01,500 ~
~ ~ --r
1,000 ~
r l
} 500 Projected, per current budget
--~-Actual
0
10/08 11/08 12/08 1/09 2/09 3109 4/09 5/09 6/09
Month
Use of Money & Property Projected vs. Actual
q 1,500
~o
~ ~
~ /
F 1,000 -
0
r°- ~
`0 500 Projected, per current budget
m
--t-Actual
0
10/08 11108 12108 1 /09 2/09 3109 4/09 5/09 6/09
Month
5-10
Transient Occupancy Tax Projected vs. Actual
2,800
'O
R 2,400
m ~ 2,000 ~ ~ r''"~
0 1,600
~ 1,200 Projected, per current budget
} $OQ -~+-Actual
400
0
10/08 11/08 12/08 1/09 2109 3109 4/09 5/09 6/09
Month
licenses & Permits Projected vs. Actuai
w 4, 000
v
c
m
of c 3, 000 ~
~
° 2,000 ~ ~
o ~
~ 1,000 ~ Projected, per current budget
-~-Actual
0
10/08 11/08 12108 1109 2109 3/09 4/09 5/09 6/09
Montfi
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