101-Staff Report.pdf
ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10 10UPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220 www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: November 16, 2010
Subject
Report for quarter ending September 2010
Recommended Action
Accept the report
Description
Investments
6.2 million at September 30,
September yield of 0.33% was down from the June 2010 yield of 0.38%
and the year ago rate of 0.49% due to the portfolio safe and liquid mix of investments. The
LAIF benchmark was at 0.50% for September, down from 0.53% in June and 0.75% 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 cash balance decreased from June to September by $2.9 million due to sales tax consulting
and sheriff contract payments. Eight million dollars in Treasuries and $1 million in Federal
Agency notes that matured this quarter were re-invested into new Treasury notes and bills.
Money market funds were also shifted into short-term Treasury bills.
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.
Market values on individual securities in the investment portfolio are provided by Wells Fargo
Bank Institutional Trust Services using valuations from Interactive Data Pricing and Reference
Data, Inc.
The retiree medical PARS trust market value grew from $7 million to $7.1 million during the
quarter ending September 30, 2010. The portfolio of money market, fixed income and equity
mutual funds returned 1.91% for the quarter. Short-term volatility of market value is anticipated,
with positive returns expected in the long run to fund future retiree medical obligations.
General Fund Revenues and Expenditures
Revenues, for the quarter ending September 30, 2010, are up 16% from a year ago, led by strong
sales tax results in the business-to-business sector. Transient occupancy taxes, planning, and
recreation service charges also experienced a good quarter while permit revenues continued to
reflect the slow recovery in the building sector. Expenditures were up 2% over last year, in-line
with budget expectations.
_____________________________________
Prepared by: David Woo, Deputy City Treasurer
Reviewed by: Carol A. Atwood, City Treasurer
Approved for Submission by: David W. Knapp, City Manager
Attachments: Investment Portfolio
Pie & Rate of Return Chart & Compliance Schedule
General Fund Budget Report