08. Treasurer 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. g
Meeting Date: May 15, 2007
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for March 2007.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended March 31, 2007. The report
includes all funds in control of the City.
The market value of the City's portfolio totaled $51.9 million at the end of March, with a cost of
$52.1 million. The difference, an unrealized paper loss, was relatively unchanged from last
month. The portfolio yielded 4.76% in March up from 4.69% the previous month and up from
3.85% a year ago. The Local Agency Investment Fund (LAIF) yielded 5.21 % for the same time
period, compared to 5.18% for the previous month and 4.14% a year ago.
A six-month U.S. Treasury Bill was purchased at a rate of 5.03%. Two certificates of deposit
matured at 5% and 4.9%. The City's cash increased by $0.4 million, because of property taxes.
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 March 2007.
Submitted by:
"
"l___
I'~ ./.~
...../ . ""-,. /"~ .
David R. Woo
Deputy Treasurer
Approved for submission:
.DJL
David W. Knapp
City Manager
Approved by:
~1t;-t. C) ct2~
C 01 A. Atwood
City Treasurer
g-I
Printed on Recycled Paper
City of Cupertino
March 31, 2007
ACTIVITY DATE
PURCHASE MATURITY
DESCRIPTION
COUPON ADJUSTED
-----------_.---
RATE COST
r-
1 1 SECURITIES MATURED
---03/30/06r--03/30/07 1 Western Sierra National Bank
03/29/06 -1. 03/29/01i!1;~]'IJ<1.ti<Jrl'II_Ba~_()f~(;()ttsboro -l
i I SECURITIES PURCHASED I I
03j28/97 ~ .. n9_?!2}/Q7[USTrellsury J3i!l____~-- 5.03%1
CAs~--~~~(=-=-...--~.-..-Igf\l)~ORTFOLlo-~-------t
---t-()i/jT;o7iw~ils Fargo--W~~kers Comp Checkin~
---+---------- --t------n...- ..... -------------- _ -. --r
I _ 03/31~07 I Wells Fargo - Regular Checking (
1 03/31/07: Wells Fargo - Investment Sweep .
--- -- -t---------- _n_ --~-- -- -- -------- _________________________n_.._ --- -- - - -1--- -..-
I i-.-
1-AIF"_m__+_________+__~__ ______ _____ ___ "
1 03/31/Q2.tLAIF-StatePool .; 5.21%f
____________L____~~~_~______~_____________________j-~--___
CERTIFICATES OF D~IT ~ _1
.- .02/03/06 . --05/0 il07--! Mo~ntain N~tion~IB~-. - ---- -. -+- . 4.60% t~
01/27/06 07/27/07 Lehman Bros Bank 4.60o/~
O~/Q3iQ6+_ __0~/~~27 . Bus0ess ..I3~n!<_~.Fox.~iv~r __4.6Q% f
__'O?~24/0~_t_--Q2/~~~. ~i~~!~}~allk.__ _ 2.70%~n
:%~~1~~~t ~!~;H~~~~~~;1~~1~{~~()fM~i~all-~ H~~l
02/10/06 02/11/08 Florida Community Bank 4.75%1
-03/17/041- _n03/17/0S- .An;~~anT~stF~dSav~gs B~k 3.000/~
_ 03/19/04 ~ 03/19/0Sj Planters First Cordele GA 3.05%[
_ 0~~~04--r _ 03/24/08n[l: Badger State ~a~~ ~ 300%j
03/24/04 t 03/24/08 Wilmont State. Bank n i 3.00%:
03/26/04 03/26/08 Private Bank & Trust 320% j
03/30/~ 03/28~08 _ ~irstnGeorgi~ J3a~king Comp~ny 5.05%+_
04/07/04 04/07/08 Cole Taylor Bank, step coupon 3.0 I % I
031z6/()4 t -09/26;08rSO~~ C~astC.<>mITlunity Bank _ 3.20%]
03/17/04 03/17~eoplesJ>!.~~B~k _ _ ~_ 340%1
~ ~Q3.!24/04 i 03/24/09 Washita State Bank 3.~5% j .
12/30/05 12/30/09 Meridian Bank 4.80%:
.__~__..n__ -... -~ t
12/28/0~+ 12/28/10 Nat'l Bank of New Yor~ City 4.90%i
--+
[ .
5.00%'
;1.90%1.
l~m_
MONEY MARKET FUNDS
- --------r
03/31/07 \\'el~!ar~o_(]overnment
5.26%
95,000
99,000
975.998
----I -
19,284 .
.- I
465,041 j
o
484,325
25,992,190.
__0_-
98,985
97,000
99,000
99,000
97,000
..- ~ - -
97,000
97 ,OO~ ~
99,000-+
99,gOO i.
98,000 .
t
99,000 I
99,000 l
99.000 :
_ 9~,0_00L
97 ,000 :
9~..oOO +
.. 9~,000-l
99,000 ,
99,00~+
97,000 1
T
_____ -4___n
1,965,985 !
r--
-...~-.-..r-.---..
----
4,057,359
4,0.57,359
MATURITY
V AWE
MARKET
VALUE
- -- --t--
i
95,0.00_ t
99,000 !
:
-f-
o
o
o
0.
o
o
T
1,000.000. j
(28)
,
- t
1
+-
19.284,
465,041 .
o
484,325
25,992,190.
25,992,190. .
0.
1-
i l
~~n99:QQOj-=.~9_8,9~It~~-~==~2)
97,0.00_ L 96, 7g4.1 . (296)
__?9-'0.Q2-t-____28.685-+ .QI~
_ 99,0.00 t 97.606. (1,394)
~7.'g.QO..-.l 9..6.7i6 : (2.54)
97.0Q.o _26~775Q~5)
97,000 ~ 96.390 (610)
99,000 -4 98,445 + (555)
99,000 [ 96,630 (2.370)
98,000 I 95,679 (2,321)
99,000 ~ 96,587 .. (2,413)
99,000 : 96,587 (2,413)
99,000 i 96,732 : (2,268)
t + n
99,000 ! 98.662 : (338)
--, --.---.--- j--- . _ ----.--
97,000 94,262 1 (2,738)
. ~8~000 _242551_ .Q,"7'!5)
99,()00 _ 94,419 ; (4,581)
99,000 94,311 (4,689)
H' t
99,000 96,808 1 (2,192)
97,(l00 94,483 . (2,517)
- ---------1 . --- ..C
1,966,0.0.~i. _1'9~9'~9~ _ (36,296)
4,057,359 _ __ 4!0.5.7.J.?J_t=~~~-=----.
4,0.57,359 4,0.57,359 : 0.
g'-z.
City of Cupertino
March 31, 2007
ACTIVITY DATE
PURCHASE MATURITY
DESCRIPTION
COUPON ADJUSTED
RATE COST
MATURITY
----- ~
VALUE
MARKET
VALUE
UNREALIZE
PROFIT/LOSS
I
+-=- _ I - ----- -I u_~n_______~___
07/09/93 04/15/07 F~L~c:~ithp~l1clPaIP-;~ff-~~~-= - {~7!~==-_~23=t--~~68; --.-----8-6~r (37)
_04/301~~+_ 04/30/07 FHLMC callable 3.30%, 499,999 : 500,000 i 499,220 ' (779)
_12!~2!03 L_ 06/2-iJ071'FNMA - n .. - 3.30%1 - 1,000,000 i 1,000,000 i____9~1>~J (4,370)
04/18/05! 10/18/07 FHLB adjustable rate 4.57%1 _ 1,5~Q,000J _~,500,~0.9 L _1,~.6,~65! (3,135)
04/14/04 -: 12/03/07 !FNMA callable .;... 2.50%j 997,565 I 1,000,000 j _9~2.500, _ (15,065)
1~13/0~l-~28!.Of!t~F~Cl!.-_- -.- - ..--1- __~7~%l nJ,(){)O,3~~ ~___J ,OOO,OOQ";n_ 996,880 i (3,478)
_Jl..41~3./04.}_ 01l23/~~FJ'!I:~B_c<lllable : 3.15%~ 1,496,688 [ 1.500,000.".. 1,476.,570 (20,118)
02/25/04 02/25/08 FHLMC ! 3.I30~ 1,000,000: 1,000,000 : 983,000 t (17,000)
"'11/il/05 - 06/23/08 FFCB _ _.. r 5.79%; 1,0i3,076J'I,OOQ,(J{)0.l- l,{)09~1-~{)J (3,886)
01/12/04 08/06/08 FHLB callable, step c~upon__+.i:.00'l{,f-__.999-,44~;____],,{)0~,{)O(j j. _ _994,380 i (5,065)
04/29/04 10/29/08 FHLB callable, step coupon ! 3.50%; 300,000 J 300,000 f 296,343 ! (3,657)
12/15/03 I 12/15/08 .l.HLMC callable, step coupon 5~OOo/~r-J:OOO,(JOO ~.- --I~OQO:OQ() + -- 9_97,770 r (2,230)
12/:"3.()/03 I _L?g_OI~ll.~!:IIJYlc:callabl~.~~epcoup~m 4. 7~%; I ,000,(jOO In I,00D-,0<J.(jj.997,620. ~ u_ _.L2.-38.())
0033//'3106//.00- 44';,' __03~1~/02nlFl'J~~.cllllatll~n_ 4.0 I %; 1,6QO,OOO. I ,6Q~,OOO j 1,572,496 j (27,504)
i 03/30/091FHLB call.a~le,step coupon 4.50% 600,000 600,00Q I 598,686; (1,314)
I2/2l!105 ( 12/28/0.9 FHLBcallable 5.04%, 915,000 915,000 f 913,1451 (2,855)
11/30/05: 04/07/10 FFCB callable _1. 3.70%j 964,564 1,000,000 . 968,750 4,186
--W2Ilosr-07Iiili(J F-HLMC ! 4.J:3%;- 982,291 I ,OOG,O(JG T 979,380 (2,911)
.---12/15/~H-i2/15/1-0 FHLMCcallable .... __. .. J _ 5.04%1 1,()OO~O()Ol . I,O()O,OO(J j 996,780 (3,220)
~~04l2~~1~4IO~lllfN:A_,,"4bl~__-=~~-t~!"'1~8~~~F~i~:~:~~8~:'~:r.~~D~~:)
US GOVERNMENT SECURITIES 1= ---r---- I I . ---------t -.--.--
03/28/07 09/27/07 US Treasury Bill ~ '5.03~-975,~ ---1,000,000 in 975:9701- --- (28)
----l- I 975,998 1_ 1,000,000! 975,970 I _____.J.28)
--!
Total Managed Portfolio -J-
Ave.!~ge yiel.lI.._._. _ _._ j ______ __ : 4.760/,+-
Average Length to Matu~y (i.'l y~a.r_s)_ . -. -tu- -Q~~1---n--_-_.t-
---j;------rrRUST PORTFOiIO(KESTER-T~UST) I-~-
CASH T - I i
_-- _ 0313 1/()gWeiis-j;slih;ti~nai Money Mil Acct I 5.09~ol
Total Trust Portfolio -i
-------t-----------------
AGENCY NOTES
52 165742
51945077
1-
____J
I
!
- 45,019t
----t-
45,019 !
- ----------r--
!
o
45019
45019 :
o
-I
---=~~F~-. ~__t~O~~RE.~E:R~E P~RT~9L!Q
Bon.!.~~~J'\It:!>.c(;~ . i~bac Assurance Security Bond
!3ond._P~~tmt Ac~t _ ~ells Treasury Plus Money Mkt
Total Bond Reserve Portfolio
T -
+-
,-
4.64%,
I
2,354
2354 :
1
2,354
2354 '
.-
o
o
8'-3
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Agency Notes
36%
Investments by Type
Managed Portfolio
US Treasuries
2%
Money
Market
7%
Cash
1%
IRate of Return Comparisonl
---
4/06
.
.
5/06
6/06
~
.
.
.
.
7/06
8/06
9/06
10/06 11/06 12/06
.
1/07
LAIF
50%
.
2/07
......
3/07
~-J{
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
March 31, 2007
Category
Treasury Issues
US Agencies
Medium Term Corporate Bonds/Notes
LAIF
Money Market Funds
Maximum Maturities
Per Issuer Max
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
Standard
Comment
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
8-5