08. Treasurer's ReportADMINISTRATIVE 51?RVICES DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVEN~JE • CUPERTINO, CA 95014-3255
(408) 777-3220 • FAX (408) 777-3109
SUMMARY
Agenda Item No.
SUBJECT AND I5SUE
Meeting Date: January 19, 2010
Accept the Treasurer's Investment Report for ~lovember 2009.
BACKGROUND
The market value of the City's portfolio totaled $49.7 million, with a book value of $49.7
million at November 30, 2009. The portfolio'; November yield of 0.47% was down from
0.49% in the previous month and 1.54% 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 0.61% for Noverber, down from 0.65% the previous month
and 2.57% 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 $0.7 million from the previous month due to sheriff and
large capital project expenses. $3 million in 'Creasuries matured in November to pay for
these anticipated expenditures. Investments are in fiill compliance with the City
investment policy and State law and are tiered to provide sufficient cash flows to pay City
obligations over the next six months.
A mid-year budget adjustment is also scheduled for tonight's agenda to discuss the
continued effect of the recession on city revenues and proposed expenditure reductions to
balance our budget during FY 09/10.
RECOMMENDATION
Accept the Treasurer's Investment Report for 1`dovember 2009.
Submitted by:
Approved for submission:
Carol A. Atwood David W. Knapp
City Treasurer City Manager
Attachment A: Investment Portfolio
s-~
City of Cupertino
Investment Portfolio
November 30, 2009
Attachment A
----~E~cxrn~rr~-_-_ ___ o r,,.,~ ~sT~ ~R~F
SECURTIIES MATURED _
_ _
07/2
8/09 _ _
] 1/27/09 US Treasury Bill 0.t7% 0.17% 1,000,000 1,000,000 1,000,000 0
__
_
12/1$/08 - 11/30/09 US Treasury Note 3.13% 0.32% 2,000,000 2,000,000 2,000,000 0
__-~
____._____ --------~_- CiTY PORTTOLIO -_°•-- ___._.._.. _
CASH
1(/30/09 Wells Fargo -Workers Comp Checking 12,779 ,12,779 12,719 0
11/30/09 Wells Fargo -Regular Checking ~ 170,477 170,477 170,477 ~ 0
11/30/09 Wells Fargo -Repurchase Agreements 0.10% 0.10% 569,507 569,507 __^ 569,507 0
752,763 752,763 752,763 0
LAIF _
11/30/09 LAIF -State Pool 0.61% 0.6i% 591,503 59I,503 591,503 0
- ~ ' ~..
CERTIFICATES GF DEPOSIT
12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ 4.80% 4.80% 99,000 99,000 99,368 _368
12/28/05 12/28/10 Natl Bnk of New York City, Flushing NV 4.90% 4.90% 97,000 _ 97,000 101,755 4,755
196,000 19G,000 __ _ 201,123 5,123
MONEY MARKET FUNDS _ _
- l l/30/09 Wells Fazgo 100%Treasury _
~ 0.01% 0.01% 8,300,286 8,300,286 _8,300,286_ _ 0
8,300,286 8,300,286 8,300,286 0
AGENCY NOTES
06/25/08 05/07/10 FFCB 4.75% 3.38% 1,005,694 1,000,000 1,019,380 13,68b
_
05/07/08 06/ll/l0 FHLB 3.00% 2.98% 1,000,106 1,000,000 1,014,380 14,274
01/30/09 09/10(10 FHLB 5.13% 1.33% 1,029,110 1,000,000 1,038,750 9,640
3,034,910 3,0__00,000 3,072,510 37,600
US TREASURY SECURITIES
08/28/09 12/03/09 US Treasury Bill 0.10% 0.10% 999,992 1,000,000 1,000,000 8
08/25/09 12/10/09 US Treasury Bill 0.13% 0.13% 999,963 1,000,000 999,980
^ i7
12/19/08 12/15/09 US Treasury Note 3,50% 0.24% 1,001,337 1,000,000 1,001,_210 (127)
01/12!09 12/15/09 US Treasury Note 3.50% 0.36% ],001,2.87
- 1,000,000 1,001,210 (77)
07/31/09 12/17/09 US Treasury Bill 0.19% 0.19% 499,910
_ 1,000,000 999,970 60
01/12/09 O1/15/]0 US Treasury Note 3.63% 030% 2,006,359 2,000,000 2,008,680 321
07/31/09 01/31/10 US Treasury Note 2.13% 0.22% 1,003,212 1,000,000 __ 1,003,360 148
08/28/09 02/04/10 US Treasury Bill 0.17% 0.17% 999,b88 1,000,000 999,960 272
01/12/09 ~ 02/15/10 US Treasury Note _
6.50% 0.44% 2,025,450 2,000,000
____ 2,026,400 950
08/25/09 _
02/28/10 US Treasury Note 2.00% 0.18% 1,004,520 1,000,000 1,004,690 170
09/25/09 03/15/10 US Treasury Note^^ _ 4.00% 0.11% 3,033,820 3,000,000 3,033,390 (430)
01/12/09 03/31!10 US Treasury Note 1.75% 0.36% 2,009,218 2,000,000 2,010,620 1,402
03/30/09 04/15/10 US Treasury Note 4.00% 0.60% _ 3,037,815 3,000,000 3,042,780 4,965
10/29/09 04/24/10 US Treasury Bill 0.15% 0.15% 3,997,583 4,000,000 3,998,400 817
_
06/24/09 ~ 05/31/10 US Treasury Note 2.63% 0.40% 1,011,048 1,000,000 1,012,230 1,182
06/29/09 05/31/10 US Treasury Note 2,63% 0.38% 1,011,149 1,000,000 1,012,230 1,081
04/30/09 06/30/10 US Treasury Note 2,88% 0.50% 2,534,408 2,500,000 2,539,150 4,742
05/14/09 07/31/10 US Treasury Note 2.75% 0.50% 3,044,740 3,000,000 3,050,970 6,230
05/21/09 08/31/!0 US Treasury Note 2.38% 0.50% 3,041,997 3,000,000 3,048,270 6,:
05/29!09 09/30/10 US Treasury Note 2.00% 0.62% 2,022,776 2,000,006 2,029,300 6,524
36,788,272 36,500,000 36,822,800 34,528
Total Mena ed Portfolio 49 663 734 99 0 552 49 740 85 77 51
City of Cupertino
Investment Portfolio
November 30, 2009
o Maturit
Average Yield 0.47% _ _
Average Length to Maturity (in years) _
__ ~ 0.32
TRUST PORTitOL1O (KFSTER TRUST)
CASH _
_ _ _
_ T
1 L/30/09 Wells Institutional Money Mkt Acct (i.15% 0.15% 48,327 48,327 48,327 0
Total Trust Portfolio J 48 327 48,327 48,327 0
BOND RESERVE PORTROLIO ____ __
_
Bond Reserve Acct Ambac Assurance Security Bond 1 I 1
Total Bond Reserve Portfolio _ 0 0 0 0
8-3
2.50%
Rate of Retarn Comparison
2.00%
1.50%
~- WF
t C~peNno
1.00%
0.50%
0.00°k
8-4
Cate~ory_ Standard
_......_ ------- I ---- ---..... _ _ _ _._ ....
Treasury Issues ~No limit
i
----._ . _...... i.. .. ....
Comment
i
I Complies
US Agencies ~No limit jComplies
Medium Term Corporate Bonds 30% with Ei rating Complies
LAIF ~ $50 million Complies
Money Market Funds j 20% Complies
Maximum Maturities I Up to S years I Complies
Per Issuer Max ~ 10% {except for Treasuries and US Agencies) Complies
Bankers Acceptances ;180 days & 40% ; Com lies
_
Commercial Paper j270 days &. 25% Complies
Negotiable Certificates of Deposit ~ 30% Complies
Repurchase Agreements °3b5 days (Complies
Reverse Repurchase agreements :Prohibited jComplies
8-5