08. Treasurer's Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
CITY OF
CUPEIUINO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. 3
Meeting Date: August 15, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for June 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended June 30, 2006. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $48 million at the end of June, with a
maturity or face value of $48.5 million. As interest rates continue to rise, the market
value of the portfolio continues to be lower than maturity value, as the longer-term fixed
interest rate securities in the portfolio are being valued at a lower price by the market.
This difference between market and maturity value is an unrealized paper loss at this
time. Such losses go away if investments are held to maturity and redeemed at face value.
The City's portfolio yielded 4.15% in June up from 4.10% the previous month and 2.97%
a year ago. The Local Agency Investment Fund (LAIF) yielded 4.70% for the same time
period, up from 4.56% in the previous month and 2.97% a year ago.
The City's cash and investment holdings decreased $1.7 million in June due to the City's
semi-annual debt service payment.
The investments of the City of Cupertino are in full compliance with our City investment
policy and/or State law, and are tiered to provide the City with sufficient cash flows to
pay its obligations over the next six months.
RECOMMENDATION
Accept the Treasurer's Investment Report for June 2006.
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Printed on Recycled Paper
Submitted by:
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David R. Woo
Deputy Treasurer
Approved by:
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Carol A. Atwood
City Treasurer
Approved for submission:
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David W. Knapp
City Manager
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Investments by Type
Managed Portfolio
US Treasuries
2%
Agency Notes .
49%
Cash
2%
CD's
4%
I Rate of Return Comparison I
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
7/05
8/05
9/05 10105 11/05 12/05 1106
2/06
3/06
4/06
6/06
5/06
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City of Cupertino
June 30, 2006
Y DATE ~~v.~. AI III IS' FI I
Y 'IIUN KATE COST VALUt VALUt
SF! ,I~ 'IFSMA' ,II
06/27/06 Lupertmo Nat'l Hank CD (Kester I rust) 2.~3% 43,:)j3 43,533 43,533 0
06/30/06 Wells Gov't Money Mrkt (Kester Trust) 5.00% 43,533 43,533 43,533 0
dTY PORTFOLIO
\...ASH
06/30/06 Wells Fargo.. Workers Comp checKmg lS,3lb lS,3lb lS,3lb 0
06/30/06 Wells Fargo - Regular Checkmg 76~,417 76~,417 76~,417 0
06/30/06 Wells Fargo -Investment Checking 3.74% 182,680 llS.l,blSU I 82,blSU 0
96U,41.5 96U,41.5 96U,41.5 0
LAIF
U()fjU/Ub LAlt - ~tate 1"001 4./U'ro U:,JU9,Ul>4 .-',JU9,Ul>4 1-',JU9,Ul>4 U
CERTIFICATES OF DEPOSI
03/30/07 Western Sierra NatIOnal Bank 5.00% ~5,uuu ~5,uuu ~4,1.l.l (278)
031'1.Yl07 FIrst NatIOnal Hank ot Scottsboro 4.~0% YY,OOO ~~,OOO ~8,67 (329)
05101/07 Mountam NatIOnal Bank 4.bU% ~lS,lS5j ~N,UUU ~lS,34b (507)
01127/06 07/27/07 Lehman Bros Bank 4.60% ':J7,000 ~7,000 ':J6,132 (868)
08/03/07 Busmess Bank of Fox RIver 4.bO% w,uuu ~~,ooo ~lS,OW (901)
OYl24/07 Signature Bank Nat'l Assn 2.70% YY,OOO Y9,000 Y5,627 (3,373)
0~/1.8/07 Venture Bank 5.00% Y7,000 ~/,OOO ':J6,484 (516)
04/05/06 10105107 Mercantile Bank of MIchigan 5.00% ~7,uuu ~/,UUU ~4,475 (2,525)
02/03/06 02/04/08 PnmeSouth Bank 4.65% Y7,000 ':J7,000 Y5,7YI (1,20Y)
02/10/06 02/11/08 Florida Commumty Bank 4.75% ~~,uuu ~~,uuu ~7,90lS (1,092)
03/17/04 03/17/08 Amencan Trust Fed Savmgs Bank 3.00% YY,OOO 9~,000 ~4,Y05 (4,095)
03/19/04 03/19/08 Planters first Cordell GA 3.05% ~lS,UUU ~lS,UUU ~4,055 (3,945)
03/24/04 031'1.4108 Hadger State Bank 3.00% ~~,OOO ~~,OOO ~4,861 (4,139)
03/24/04 03/24/08 Wilmont State Bank 3. UU'ro ~~,UUU 9~,uuu ~4,lSbl (4,139)
0311.6/08 Pnvatebank & Trust 3.1.0% YY,OOO ~Y,OOO ~5,l8Y (3,811)
03/28/08 Irst GeorgIa Banking Company 5.u5'ro ~~,UUU ~~,UUO ~lS,330 (670)
04/07/04 04/07/08 Lole Taylor Hank, step coupon 2.4~% Y7,000 ~7,000 ~4,~Y2 (2,008)
09/26/08 South coast CommuntIy Bank 3.20% ~lS,UUU ~lS,UUU ~3,.l3lS (4,762)
03/17/04 03/17/09 Peoples state Bank 3.40% ~~,OOO ~~,OOO ~3,b'/0 (5,330)
03/24/09 Washita State Bank 3.35% 99,000 YY,OOO Y3,506 (5,494)
12130/05 12/30/09 Meridian Bank 4.lS0% w,uuu ~~,UUU ~b,b54 (2,346)
12/28/05 12/28/10 Nat'l Bank otNew York City 4.90% 97,000 Y7,000 Y4,375 ' (2;625)
2,159,1153 2,16U,UUU 2,1 U4,1I'JI ,
MONEY tUNDS
06/30/06 Wells Fargo Uovernment 5.00% 8,237,l.l.3 8,237,1.23 8,237,223
1I,1.37,J.J.J 1I,J..j7,J.J..j 1I,J.j7,J.J.j 0
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City of Cupertino
June 30, 2006
Al.-llVll I VAle MATUKlTY
I MAIUKlTY KAle CUST VALUE VALUE .~
AGENCY NOTES
U71L1/U3 U7/211U6 IFHLt! callable 2.2U% 500,000 500,000 499,uu PlSU)
08/07/03 08/07/06 IFHLB callable, step coupon 2.75% 500,000 500,000 498,75U (1,25U)
ulS/ll/u3 OlSI111U6 FHLB callable 2.5U% 2,400,000 2,400,000 2,392,5IL P,4lSlS)
03/08/04 12/26/06 FHLMC callable 2.30% 797,408 800,000 787,8ulS (9,6UU)
U7/U'Jf')3 U4/15/U7 FHLMc senes ILJ 1 6.40% 27-;%4 ~ ~39 (1,125)
04/30/04 04/30/07 IFHLMC callable 3.30% 499,993 500,000 490,975 ('J,UIlS)
I:lI.l.lIU3 U6/UIU7 IFNMA 3.30% I , 0Ulf,(ml) ~ ~U6U (20,940)
04/18/05 10/18/07 IFHLB adjustable rate 4.85% 1,500,000 1,500,000 1,497,735 (2,265
U411 4/U4 12/03/07 FNMA callable 2.50% 994,864 1,000,000 959,3lSU (J),4lS4)
ILl U/u5 121LlS/u7 Inct! 4.75% 1,000,7TS- -r,uun;uoo- -989,JlSU (11,338)
04/23/U4 01123/08 FHLB callable 3.15% 1,493,643 1,500,000 1,447,'Jo5 (45,67lS)
OLf.l5/U4 ULI25/UlS IFHLMC 3.13% 1,000;000 T,OOO;OOO -963,24U (36,760)
11121105 06/23/08 IFFCB 5.79% 1,021,038 1,000,000 1,005,lS/U (15,16lS)
U 1/ I:l/U4 UlS/Uo/UlS FHLB callable, step coupon 3.50% 999,137 1,000,000 978,75U (20,387
U4/29/U4 10/29/U8 FHLt! callable, step coupon 3.5U% 30U,000 300,000 290,71lS (Y,LlSL)
12/15/03 12/15/08 IFHLMC callable, step coupon 4.00% 1,000,000 1,000,000 982,YlSU (17,U2U)
IL/JU/UJ J:l/JU/UlS FHLMc callable, step coupon 4.75% 1,000~ ~ W4,12U (15,880)
U3/16/U4 03/16/09 FNMA callable 4.01% 1,600,000 1,600,000 1,542,4YO (57,5U4)
UJ/Ju/U4 UJ/JU/U'J FHLB callable, step coupon 4.00% 600~ onn;omf 592~314 (7,686)
U4/3U/U4 04/30/09 IFHLB callable, step coupon 3.13% 1,000,000 1,000,000 992,I'JU P,lSlO)
ILILlS/U) 12/28/09 IfHLB callable 5.04% 9 rs;noo 915,000 900,7UlS (14,292)
I WU/U5 U4/0711U IFFCB callable 3.70% 955,762 1,000,000 940,oJU (15,13L)
11121105 07/12/1 0 FHLMC 4.13% 978,244 1,000,000 951,250 (26,994)
121 15/05 12/15110 FHLMC callable 5.04% 1,000,000 1,000,000 977,ouu (.l.l,4UU)
04/21/06 04/07/11 FNMA callable 5.75% 748,053 750,000 744,142 (3,911
23,1131,824 23,891,889 23~16,().j~ (415,ln)
MEN'!' SECURI IES
UJ/31/05 08/31/06 US Treasury Note 2.38% 982,812 1,000,000 995,74U 12,928
982,812 1,000,000 995,740 tz,nll
lotal Manage ,rortlOIIO 411,4111,1119 411,5511,5119 411,U:':3,'0" ~'I:'I/,~~O)
Average YIeld 4.15%
Average Length to MatUrIty m years) 1.09
TRUST & AGENLY .
lVIV"C I FUNDS
06/30/06 Wells Fargo Government (Kester Trust) 5.00% 43,533 43,533 43,533 U
Total Trust &. Agency Porti"o 10 43,533 43,533 43,:'1"" U
ERVE PURTFOLIO
Bond Reserve Acct #078793 Ambac Assurance Secunty Bond 1 I I
t!ond Payment Acct Wells Fargo Treasury Plus Money Mitt 4.31% 2,4UI,369 L;4OT;JW L;4OT,369 0
lotal !Sona Keserve Portfolio 2,401~ , , U
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
June 30, 2006
Category Standard Comment
Treasury Issues No limit Complies
US Agencies No limit Complies
Medium Term Corporate Bonds/Notes 30% with A rating Complies
LAIF $40 million Complies
Money Market Funds 20% Complies
Maximum Maturities Up to 5 years Complies
Per Issuer Max 10% (except LAIF) Complies
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
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