05. Treasurer's reportADMINISTRATIVE SERVICES DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014 -3255
(408) 777 -3220 - FAX 1408) 777 -3109
SUMMARY
Agenda Item No.
4
SUBJECT AND ISSUE
Meeting Date: April 20, 2010
Accept the Treasurer's Investment and Budget :Report for February 2010.
BACKGROUND
Investments
The market value and book value of the City's portfolio both totaled approximately $51.8
million at February 28, 2010. The portfolio':. February yield of 0.42% was down from
0.44% in the previous month and 1.07% 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 0.58% for February, up from 0.56% the previous month but
down from 1.87% 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 $0.8 million from the previous month due to two sheriff
payments. $4 million in Treasuries matured th=.s month.
Investments are in full 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.
General Fund Revenues and Expenditures
Fiscal year -to -date revenues were below prior year levels by 17% at the end of February,
but forecasts show City revenues to end up 9% below last year's actual numbers. This
decrease has already been reflected in the midyear budget adjustment. Sales taxes, transient
occupancy taxes, and investment earnings are particularly impacted from the recession and
low interest rate environment.
Operating expenditures through February are currently at 2% over last year, well within the
current budget expectations. Biannual election costs and the re- opening of Blackberry Farm
are offset by lower plan check, legal, and city communication costs. In addition, the
selective hiring freeze has contributed to keeping expenditures below budget
appropriations.
5 -1
Treasurer's Investment and Budget Report
April 20, 2010
Page 2 of 2
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for February 2010.
Submitted by:
0 ,4,1 � 6? - & , k
Carol A. Atwood
City Treasurer
Approved for submission:
_C
David W. Knapp
City Manager
Attachment A: Investment Portfolio
Attachment B: General Fund Budget Report and Charts
GAFinancelTreasuryWonthly Reportslstaffreport Feb 2010.doc 5-2
City of Cupertino
Investment Portfolio
February 28, 2010
ATTACHMENT A
ACTIVITY DATE
I
COUPON
YIELD
ADJUSTED
MATURITY
MARKET
UNREALIZED
PURCHASE
DESCRIPTIO
o Maturit
COST
VAI I
VALUE
O I
- - - - --
SECURITIES MATURED
07/31/09
01/31/10
US Treasury Note
2.13%
0.22%
1,000,000
1,000,000
1,000,000
0
08/28/09
02/04/10
US Treasury Bill
0. 17%
0.17%
1,000,000
1,000,000
1,000,000
0
01/12/09
02/15/10
US Treasu Note
6.50%
0.44%
2,000,000
2,000,000
2,000,000
0
CITY PORTFOLIO
CASH
02/28/10
_
Wells Fargo - Workers Comp Checkin
15,208
15,208
15,208
- _ 0
02/28110
Wells Fargo - Regular Checking
22,968
22,968
22,968
f 0
02/28/10
Wells - Repurchase Agreements
0 10%
0.10%
528,883
528,883
528,883
_ _ 0
_Fargo
567,059
567,059
567,059
-_ -_ 0
IF
LA IF
-
02/28/10
LA[F - State Pool
058%
0.58%
592,405
592,405
592,405
0
_
CERTIFICATES OF DEPOSIT
^
12/28/05
12/28/10
N atl Bnk of New York City, Flushing N
- 4 90%
4.90%
97,000
_ 97,000
100,425
3,425
97,000
97,0
-
3,425
MONEY MARKET FUNDS
_
02/28/10
Wells Fargo 10 Treasury
0 01%
_0.01%
8,866,14
8,866,141
8,86
0
- --
8,866,141
8,866,141
_ 8,866,141
0
AGENCY NOTES
06/25/08
05/07/
F -_
4 .75%
3.38%1
1
1,000,000
1,008,440
5,990
05/07/08
06/11/1
_
FHLB
_
3 .00%
2.98%1
1,000,057
_1,000,000
1,007,810
7,753
01/30/09
09/10110
FHLB - -
5.13%
1.33%
1,019,885
- 1,000,000
1,026,880
6,995
-'
3,022,392
3,000,000
3,043,130
20,738
US TREASURY SECURITIES
08/25/09
02/2
US Treasury Note
2.00%
0.18%
1,000,000
1,000,000
1,000,000
0
09/25/09
03
US Treasury Note
4.00%
0.11%
3,004,831
3,000,000
_3,004,350
(481)
01/12/09
03/31/10
US Treasury Note
1 .75%
0
2,002,362
2,000,000
_- 2,002,660
2
03/30/09
0 4/15/10
US Treasury
4.00%
0.60%
3,012,790
3,000,000
3,014,400
1,61Q
10/29/09
US Tre Bill
C.15%
0.15%
3,999,033
4,000,000
3,999,320
287
12/07/09
_ _04/29/10
05/20/10
US Tre Bill
C.15%
0.15
3,998,650
4,000,000
3 ,999,040
390
06/24/09
05/31/10
US Treasury Note
2.63%
0.4
1,005,585
1,000,000
1,
585
06 /29 /0 9_
05/31/10
US Treasury Note
2.63%
0. 3_8%
1,005,636
1,000,000
1,0
534
12/
06/17/10
US Treasury Bill
C.13%
0.13%
3,998,426
_ _ 4,000,000
3,998,440
_ 14
04/30/09
_
06/30/10
US Treasury Note
2.88%
0.50
2,519,801
2,500,000
2,522,5
2,749
05/1
07/31/10
US Treasury Note
2
0.50%
3,028,169"
3,000,000
_3,032,340
4,171
05/21/09
08/31/10
US Treasury Note
2
Y 0.50%
3,02
3,000,000
_ 3,032,340
4,138
05/29/09
09/3011_0
US Treasury Note
2 .00 %
0.62%
2,016,033
2,000,000
2,020,700
4,667
01/29/10
121_31/10
_
US Treasury Not
(
0.25%
2,513,163
2,500,000
2,512,000
(1,163)
01/29/10
01/31/11
US Treasury Note v _
_
( 1.88%
0.28%
2
2,500,000
2,512,700
- ( 930)
_—
_..
�.._...-- .._-
.......
38,646,311
38,SOO,000
38,663180
16,869
5 -3
City of Cupertino
Investment Portfolio
February 28, 2010
ACTMTY DATE
COUPON
YIELD
ADfUSTED
M ATURITY
MARKET
UN ALIZEL
PURCHASE I MATURITY
E
1t
Fo Maturi
S
VALUE
LOS`S
Total Managed Portfolio
51,791,308
1 22 6 5
51,832,340
41 032
Average Yield
^^
0.42%
_
Average Length to Maturity
in years)
0.27
-
_
TRUST PORTFOLIO (KESTER TRUST )
CASH
02/28/10
Wells Institutional Money Mkt Acct
0.15%
0.15%
J 48,344
48,344
48,34
0
Total Trust Portfolio
_
48,344
48,3
48,344
0
BOND RESE PORTFOLIO
Bond Reserve Acct_
Ambac Assurance Security Bond
Total Bond Reserve Portfolio
0
0
0
0
5 -4
City of Cupertino
ATTACHMENT B
General Fund Budget Report
,
February 28, 2010
Budget
Actual
Amended
Amended
2008/09
2009/10
2/28/2009
2/28/2010
Analysis of Trends
Taxes:
Sales Tax
13,390,000
11,249,000
9,442,062;
6,246,366
State true-up of last year's declines
Property Tax
11,080,000
10,419,503
6,367,804
5,866,861
State borrowing
Transient Occupancy
2,660,000
1,994,000
1,496,170`
1,373,295
Starting to turnaround
Utility Tax
3,300,000
3,366,000
1,744
1,808,811
On track
Franchise Fees
2,630,000
I 2,630,000
980,3264
979,048
On track
Other Taxes
1,500,000
1 1,200,000
714,828;
730,262
Transfer tax up; construction tax down
Licenses and Permits
2,980,000
; 3,210,000
1,687,429'
1,884,438
Rose Bowl development
Use of Money & Property
1,267,000
891,000
829,077;
451,297
Investment earnings reflective of market
Other Intergovernmental
283,892
245,000
184,459
282,257
$40k fy 09 COPS rec'd in fy 10
VLF Non Swap
210,000
170,000
82,457
53,311
No VLF for Nov/Dec
Intergovernmental
493,892
415,000
266,916
335,568
Federal stimulus
-1 _ r... n - ._.' ---
t- 11digub im JGIVA.GS
1 A GO AAA
A "+VO,vvv
1 A') A nnn
i, - rJ - f,vvv
n Gm
i Imo,-
04n nosy
v,viv
Riorlrhumr dorm
.. ..J .
Fines & Forfeitures
820,000
902,000
405,359
419,649
Parking fines u
Other Revenue
100,000
100,000
32,752
47,998
Total Revenue
37.810.5
.865
Op erating Expenditures:
Administrative
1,483,395
1,517,004
832,400!
873,307
On track
Law Enforcement
i 8,480,671
8,565,6361
4,849,602,
5,606,963
On track; increase due to safety around schools
Public & Environ. Affairs
1,512,796
1
915,923
864,702
On track
Administrative Service
4,254,006
3,985,345
2,244,887
2,559,246
On track; increase due to election costs
Recreation Service
4,397,466
4,289,549
2,245,419
2,496,488
On track; increase due to BBF picnic operations
Community Development
4,207,724
3,560,750
2,034,119
1,943,726
Plan check savings
Public Works
11 652,062
11,833,700
6,654,794
6,855,459
On track
Total Expenditures
25-288.12Q
35,256.5
19,777,14A
21012M
Transfers In
623,925
742,037
46,640
742,037
Represents payment for debt service, capital project
Transfers Out
- 7,110,000
- 7,649,040
- 4,733,280
- 5,124,704
costs and retiree medical obligations which is funded
out of the excess General Fund reserves.
Net Gain/(Loss)
- 7 85.303
435340
4
-
D
D
n
m
--!
W
2.00%
1.80%
1.60
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Rate of Return Comparison
tIAIF
—�— Cupertino
14Og e e so\Og 1\411 e g \O � \O �� \O \O e e
5 -6
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
February 28, 2010
Category Standard Comment
Treasury Issues
US Agencies
Medium Term Corporate Bonds
LAIF
Money Market Funds
Maximum Maturities
Per Issuer Max
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
No limit
Complies
No limit
Complies
30% with A rating
Complies
$50 million
Complies
20%
Complies
Up to 5 years
Complies
10% (except for Treasuries and US Agencies)
Complies
180 days & 40%
Complies
270 days & 25%
Complies
30%
Complies
365 days
Complies
Prohibited
Complies
5 -7
General Fund Expenditures Projected vs. Actual
y 25,000
o
20,000
o ~ 15,000
0
1z 10,000
5,000
0
—� Projected, per current budget
—�-- Actual
10/09 11109 12/09
Month
1/10 2/10
5 -8
Sales Tax Projections vs. Actual
$8,000
y
V
C
10
$6,000
a
6 $4,000
' $2,000
$0
f
—+-- Projected, per current budget
--w— Actual
10/09 11109 12/09 1/10 2110
Month
Property Tax Projections vs. Actual
$7,000
H
b $6,000
w
t $5,000
o $4,000
6
bt $3,000
m
$2,000
$1,000
$0
--r Projected, per current budget
e— Actual
10109 11109 12109 1110 2/10
Month
5 -9
Transient Occupancy Tax Projected vs. Actual
0 1,600
-D
C
0 1,200
800
L
} 400
0
—+--- Projected, per current budget
—w-- Actual
10/09 11109 12109 1110 2110
Month
Licenses & Permits Projected vs. Actual
N 3,000
V
C
w
2,000
0
1,000
m
—♦-- Projected, per current budget
—�— Actual
0
10/09 11109 12109 1/10 2/10
Month
5 -10
Charges for Services Projected vs. Actual
y
1,500
m 1,000
0
0
0 500
d
}
7
r - 7Projected, per current Actual
10109 11/09 12109 1/10 2/10
Month
Use of Money & Property Projected vs. Actual
Q) 1,000
M
R
0
F 500
l
H1
(1
}
u
*.-- Projected, per current budget
Actual
10/09
10/09 11/09 12/09 1/10 2/10
Month
5 -11