06. Treasurer's Report
II
.,
CITY OF
CUPEIQ"INO
City Hall
10300 T orre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. ~
Meeting Date: December 6, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for October 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended October 31, 2006. The report
includes all funds in control of the City.
The market value of the City's portfolio totaled $47.1 million at the end of October, with a cost
of $47.3 million. The difference, an unrealized paper loss, continues to decrease. The portfolio
yielded 4.49% in October down from 4.53% the previous month and up from 3.14% a year ago.
The Local Agency Investment Fund (LAIF) yielded 5.10% for the same time period, up from
5.02% in the previous month and 3.46% a year ago.
The City's cash and investment balance increased slightly by $0.2 million. As expected, the
Federal Home Loan Bank (FHLB) called back its $1 million security at the end of October just
before the interest rate on the investment was to step up from 3.13% to 6%. The transitioning of
the money through the City's accounts into LAIF caused the high checking balance of $1.3
million for the date of this report. The balance normally averages $0.5 million through the month
to cover cash needs.
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.
RECOMMENDATION
Accept the Treasurer's Investment Report for October 2006.
~~
David R. Woo
Deputy Treasurer
ApRroved for submission:
~
David W. Knapp
City Manager
Approved by:
C!-li>UJrf a Ohe/lif~
Carol A. Atwood
City Treasurer
~-I
Printed on Recycled Paper
City of Cupertino
October 31,2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
PURCHASE DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
SECURITIES CALLED
04/30/04 04/30/09 FHLB callable, step coupon 313% 1,000,000 1,000,000 1,000,000 0
SECURITIES PURCHASED
CITY PORTFOLIO
CASH
10/31/06 Wells Fargo - Workers Comp Checking 22,889 22,889 22,889 0
10/31/06 Wells Fargo - Regular Checking 1.098,994 1,098,994 1,098,994 0
10/31/06 Wells Fargo - Investment Checking 3.87% 275,799 275,799 275,799 0
1,397,682 1,397,682 1,397,682 0
LAIF
10/31/06 LAIF - State Pool 5.10% 16,379,656 16,379,656 16,379,656 0
CERTIFICATES OF DEPOSIT
03/30/06 03/30/07 Western Sierra National Bank 5.00% 95,000 95,000 94,786 (214)
03/29/06 03/29/07 First National Bank of Scottsboro 4.90% 99,000 99,000 98,803 (197)
02/03/06 05/01/07 Mountain National Bank 4.60% 98,912 99,000 98,615 (297)
01/27/06 07/27/07 Lehman Bros Bank 4.60% 97,000 97,000 96,445 (555)
02/03/06 08/03/07 Business Bank of Fox River 4.60% 99,000 99,000 98,419 ( 581)
03/24/04 09/24/07 Signature Bank Nat'l Assn 2.70% 99,000 99,000 96,684 (2,316)
03/28/06 09/28/07 Venture Bank 5.00% 97,000 97,000 96,658 (342)
04/05/06 10/05/07 Mercantile Bank of Michigan 5.00% 97,000 97,000 96,652 (348)
02/03/06 02/04/08 PrimeSouth Bank 4.65% 97,000 97, 000 96,124 (876)
02/1 % 6 02/11108 Florida Conununity Bank 4.75% 99,000 99,000 98,212 (788)
03/17/04 03/17/08 American Trust Fed Savings Bank 3.00% 99,000 99,000 95,869 (3,131 )
03/19/04 03/19/08 Planters First Cordell GA 3.05% 98,000 98,000 94,980 (3,020)
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99,000 95,827 (3,173)
03/24/04 03/24/08 Wilmont State Bank 3.00% 99,000 99,000 95,827 (3,173)
03/26/04 03/26/08 Privatebank & Trust 3.20% 99,000 99.000 96,080 (2,920)
03/30/06 03/28/08 First Georgia Banking Company 5.05% 99,000 99,000 98,534 (466)
04/07/04 04/07/08 Cole Taylor Bank, step coupon 2.49% 97,000 97,000 95,974 (1,026)
03/26/04 09/26/08 Southcoast Conununity Bank 3.20% 98,000 98,000 94,160 (3,840)
03/17/04 03/17/09 Peoples State Bank 3.40% 99,000 99,000 94,685 (4,315)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 94,546 (4,454)
12/30/05 12/30/09 Meridian Bank 4.80% 99,000 99,000 97,421 (1,579)
12/28/05 12/28/10 Nat'l Bank of New York City 4.90% 97,000 97,000 95,388 (1,612)
2,159,912 2,160,000 2,120,689 (39,223)
~-1
City of Cupertino
October 31,2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
PURCHASE MATURITY DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
MONEY MARKET FUNDS
10/31/06 Wells Fargo Government 5.12% 7,987.756 7,987,756 7,987.756
7,987,756 7,987,756 7,987,756 0
AGENCY NOTES
03/08/04 12/26/06 FHLMC callable 2.30% 799,189 800,000 796,248 (2,941)
07/09/93 04/15/07 FHLMC with principal payoff 6.28% 13,790 13,259 13,229 (561)
04/30/04 04/30/07 FHLMC callable 3.30% 499,996 500,000 495, I 85 (4,811)
I 2/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 987,810 (12,1 90)
0411 8/05 10/18/07 FHLB adjustable rate 4.54% 1,500,000 1,500.000 1,493,940 (6,060)
0411 4/04 12/03/07 FNMA callable 2.50% 996,077 1,000.000 972,500 (23,577)
12/13/05 12/28/07 FFCB 4.75% 1,000,556 1,000,000 996,250 (4,306)
04/23/04 01/23/08 FHLB callable 3.15% 1,495,0 I 0 1,500.000 1,466,250 (28.760)
02/25/04 02/25/08 FHLMC 3.13% 1,000,000 1,000.000 976,110 (23.890)
II/21/05 06/23/08 FFCB 5.79% 1,017,464 1,000,000 1,013,330 (4,134)
01/12/04 08/06/08 FHLB callable, step coupon 3.50% 999,275 1,000,000 988,750 (10.525)
04/29/04 10/29/08 FHLB callable, step coupon 3.50% 300,000 300,000 294,468 (5,532)
12115/03 12/15/08 FHLMC callable, step coupon 4.00% 1,000,000 1,000,000 992,620 (7,380)
12/30/03 12/30/08 FHLMC callable, step coupon 4.75% 1,000,000 1,000,000 997,230 (2,770)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 1,600.000 1,566.496 (33,504)
03/30/04 03/30/09 FHLB callable, step coupon 4.00% 600,000 600,000 596.814 (3,186)
12/28/05 12/28/09 FHLB callable 5.04% 915,000 915,000 910.141 (4,859)
11/30/05 04/07110 FFCB callable 3.70% 959,713 1,000,000 962,190 2,477
11/21/05 0711 2/1 0 FHLMC 4.13% 980,061 1,000.000 975,310 (4,751)
1211 5/05 12/15110 FHLMC callable 5.04% 1,000,000 1,000,000 996,330 (3,670)
04/21/06 04/0711 I FNMA callable 5.75% 748,191 750,000 749,063 872
19,424,322 19,478,259 19,240,264 (184,058)
Total Managed Portfolio 47,349,328 47,403,353 47,126,047 (223,281 )
Average Yield 4.49%
Average Length to Maturity (in years) 0.89
TRUST PORTFOLIO (KESTER TRUST)
CASH
10/31/06 Wells Institutional Money Mkt Acct 5.04% 44,088 44,088 44,088 0
Total Trust & Agency Portfolio 44,088 44,088 44,088 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct #078793 Ambac Assurance Security Bond I I I
Bond Payment Acct #078794 Wells Fargo Treasury Plus Money Ml 4.64% 4,412 4,412 4,412 0
Total Bond Reserve Portfolio 4412 4412 4412 0
~-3
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
October 31, 2006
Category
Treasury Issues
US Agencies
!v1edium Tenn Corporate Bonds/Notes
LAIF
Money Market Funds
Maximum Maturities
Pcr Issuer Max
Bankers Acceptances
Cummercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
Standard
No limit
No limit
30% with A rating
$40 million
20%
Up to 5 years
10% (except LAIF)
180 days & 40%
270 days & 25%
30%
365 days
Prohibited
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Comment
&-y
6.00%
5.00%
4 00% ---
3.00%
2.00%
1.00%
0.00%
11/05
12105
Investments by Type
Managed Portfolio
US Treasury Notes
0%
Agency Notes
40%
Money Market
17%
\ Rate of Return Comparison I
1/06
2106
3106
4106
5106
6/06
7106
]0/0
8106
9106
10106
&'-s