09 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. 9
SUBJECT AND ISSUE
Meeting Date: November 6, 2006
Accept the Treasurer's Investment Report for September 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended September 30, 2006. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $46.9 million at the end of September, with a
cost of $47.2 million. The difference, an unrealized paper loss, decreased from the previous
month. The portfolio yielded 4.53% in September up from 4.47% the previous month and 3.10%
a year ago. The Local Agency Investment Fund (LAIF) yielded 5.02% for the same time period,
up from 4.95% in the previous month and 3.32% a year ago.
The City's cash and investment holdings were unchanged.
Investments are in full compliance with City investment policy and/or State law, and are tiered to
provide sufficient cash flows to pay City obligations over the next six months.
RECOMMENDA TION
Accept the Treasurer's Investment Report for September 2006.
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David R. Woo
Deputy Treasurer
Approved for submission:
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David W. Knapp
City Manager
Approved by:
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Carol A. Atwood
City Treasurer
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Printed on Recycled Paper
City of Cupertino
September 30,2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
IPUI/1 'H AS'" MATURITY DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
SECURITIES MATURED
SECURITIES PURCHASED
CITY PORTFOLIO
CASH
09/30/06 Wells Fargo - Workers Comp Checking 26,731 26,731 26,731 0
09/30/06 Wells Fargo - Regular Checking 438,882 438,882 438,882 0
465,613 465,613 465,613 0
LAIF
09/30/06 LAIF - State Pool 5.02% 15,907,862 15,907,862 15,907,862 0
CERTIFICATES OF DEPOSIT
03/30/06 03/30/07 Western Sierra National Bank 5.00% 95,000 95,000 94,754 (246)
03/29/06 03/29/07 First National Bank ofScottsboro 4.90% 99,000 99,000 98,763 (237)
02/03/06 05/01107 Mountain National Bank 4.60% 98,897 99,000 98,553 (344)
01/27/06 07/27/07 Lehman Bros Bank 4.60% 97,000 97,000 96,419 (581)
02/03/06 08/03/07 Business Bank of Fox River 4.60% 99,000 99,000 98,398 (602)
03/24/04 09/24/07 Signature Bank Nat'l Assn 2.70% 99,000 99,000 96,519 (2,481 )
03/28/06 09/28/07 Venture Bank 5.00% 97,000 97,000 96,678 (322)
04/05/06 10/05/07 Mercantile Bank of Michigan 5.00% 97,000 97,000 96,673 (327)
02/03/06 02/04/08 PrimeSouth Bank 4.65% 97,000 97,000 96,131 (869)
02/1 0/06 02/11108 Florida Community Bank 4.75% 99,000 99,000 98,226 (774)
03/17/04 03/17/08 American Trust Fed Savings Bank 3.00% 99,000 99,000 95,754 (3,246)
03/19/04 03/19/08 Planters First Cordell GA 3.05% 98,000 98,000 94,875 (3,125)
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99,000 95,712 (3,288)
03/24/04 03/24/08 Wilmont State Bank 3.00% 99,000 99,000 95,712 (3,288)
03/26/04 03/26/08 Privatebank & Trust 3.20% 99,000 99,000 95,981 (3,019)
03/30/06 03/28/08 First Georgia Banking Company 5.05% 99,000 99,000 98,578 (422)
04/07/04 04/07/08 Cole Taylor Bank, step coupon 2.49% 97,000 97,000 95,794 (I,206)
03/26/04 09/26/08 Southcoast Community Bank 3.20% 98,000 98,000 94,094 (3,906)
03/17/04 03/17/09 Peoples State Bank 3.40% 99,000 99,000 95,570 (3,430)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 94,424 (4,576)
12/30/05 12/30/09 Meridian Bank 4.80% 99,000 99,000 97,385 (1,615)
12/28/05 12/28/1 0 Nat'l Bank of New York City 4.90% 97,000 97,000 95,359 (1,641 )
2,159,897 2,160,000 2,120,352 (39,545)
MONEY MARKET FUNDS
09/30/06 Wells Fargo Government 5.24% 8,198,437 8,198,437 8,198,437
8,198,437 8,198,437 8,198,437 0
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City of Cupertino
September 30,2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
P~ ,~ MAIUKlTY DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
AGENCY NOTES
03/08/04 12/26/06 FHLMC callable 2.30% 798,740 800,000 794,408 (4,332)
07/09/93 04/15/07 FHLMC with principal payoff 6.30% 17,233 16,570 16,540 (693)
04/30/04 04/30/07 FHLMC callable 3.30% 499,995 500,000 494,395 (5,600)
12/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 986,250 (13,750)
04/18/05 10/18/07 FHLB adjustable rate 4.79% 1,500,000 1,500,000 1,493,355 (6,645)
04/14/04 12/03/07 FNMA callable 2.50% 995,771 1,000,000 970,940 (24,831 )
12/13/05 12/28/07 FFCB 4.75% 1,000,597 1,000,000 995,940 (4,657)
04/23/04 01/23/08 FHLB callable 3.15% 1,494,666 1,500,000 1,463,910 (30,756)
02/25/04 02/25/08 FHLMC 3.13% 1,000,000 1,000,000 974,620 (25,380)
11/21/05 06/23/08 FFCB 5.79% 1,018,365 1,000,000 1,012,730 (5,635)
01/12/04 08/06/08 FHLB callable, step coupon 3.50% 999,240 1,000,000 987,810 (11,430)
04/29/04 10/29/08 FHLB callable, step coupon 3.50% 300,000 300,000 294,000 (6,000)
12/15/03 12/15/08 FHLMC callable, step coupon 4.00% 1,000,000 1,000,000 991,610 (8,390)
12/30/03 12/30/08 FHLMC callable, step coupon 4.75% 1,000,000 1,000,000 995,420 (4,580)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 1,600,000 1,564,496 (35,504)
03/30/04 03/30/09 FHLB callable, step coupon 4.00% 600,000 600,000 596,628 (3,372)
04/30/04 04/30/09 FHLB callable, step coupon 3.13% 1,000,000 1,000,000 998,440 (1,560)
12/28/05 12/28/09 FHLB callable 5.04% 915,000 915,000 909,565 (5,435)
11/30/05 04/07/1 0 FFCB callable 3.70% 958,717 1,000,000 959,060 343
11/21/05 07/12/10 FHLMC 4.13% 979,603 1,000,000 973,130 (6,473)
12/15/05 12/15/10 FHLMC callable 5.04% 1,000,000 1,000,000 995,970 (4,030)
04/21/06 04/07/11 FNMA callable 5.75% 748,156 750,000 750,000 1,844
20,426,083 20,481,570 20,219,217 (206,866)
Total Managed Portfolio 47,157,893 47,213,482 46,911,481 (246,412)
Average Yield 4.53%
Average Length to Maturity (in years) 0.98
TRUST PORTFOLIO (KESTER TRUST)
CASH
09/30/06 Wells Institutional Money Mkt Acct 5.04% 43,719 43,719 43,719 0
Total Trust & Agency Portfolio 43,719 43,719 43,719 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct #078793 Ambac Assurance Security Bond 1 1 1
Bond Payment Acct #078794 Wells Fargo Treasury Plus Money M~ 4.63% 4,397 4,397 4,397 0
Total Bond Reserve Portfolio 4397 4397 4397 0
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Investments by Type
Managed Portfolio
Agency Notes
43%
CD's
4%
I Rate of Return Comparison I
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
7/06
8/06
9/06
10/05
11/05
12/05
1/06
2/06
3/06
4/06
5/06
6/06
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
September 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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