08. Treasurer's ReportADMINISTRATNE SERVICES DEPARTMENT
~t,JP'ERT1hf0
CITY HALE.
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
(408) 777-3220 ~ FAX (408) 777-3109
SUMMARY
Agenda Item No. ~_
SUBJECT AND I5SUE
Meeting Date: April 15, 2008
Accept the Treasurer's Investment and Budget Report for February 2008, including a status
report on General Fund Revenue and Expenditures.
BACKGROUND
INVESTMENTS
The market value of the City's portfolio totaled $63.1 million at February 29, 2008, with a
cost of $62.9 million. The difference, an unrealized paper gain of $256,000, was unchanged
from last month. The gain resulted from the economy's falling interest rates, which drove
up the market value of fixed interest securities in the portfolio. The decline in interest rates,
however, sent the portfolio's yield down to 3.49% in February, compared to 3.92% the
previous month and 4.72% a yeaz ago. The Local Agency Investment Fund (LATE) yielded
4.16% for February, down from 4.62% for the previous month and down from 5.18% a
year ago.
$3.8 million of agency notes and certificates of deposit either matured . or were called
during the month. The City's cash & investment balance rose $0.9 million due to sales
taxes. The new monies and the matured or called securities were invested in Federal Farm
Credit agency securities and U.S. Treasuries.
Investments are in full compliance with City investment policy and/or State law, and aze
tiered to provide sufficient cash flows to pay City obligations over the next six months.
GENERAL FUND REVENUES AND EXPENDITURES
Dear-to-date revenues through February 29, 2008 aze up 3% over a comparable period
from last year. Growth in sales taxes, hotel taxes, and interest earnings are offset by
declines in development-related fees and taxes. The current budget projects revenues to
end up about 1 % over last yeaz's results.
The current budget calls fora 20%-increase over last year's actual results, partially
reflecting the recreation enterprises moved into the General Fund this year. However,
operating expenditures through February are up only I3% over last year and if that trend
continues, budget savings should be incurred by the end of the year.
8-1
Treasurer's Investment and Budget Report
April 15, 2008
Page 2 of 2
RECONIIVII;NDATION
Accept the Treasurer's Investment and Budget Report for February 2008.
Submitted by: Ap roved for submission:
David Woo David W. Knapp
Deputy Treasurer City Manager
Reviewed by:
~~
Carol A. Atwood
City Treasurer
Attachments:
1 _ Investment Portfolio
2. Rate of Return Comparison and Investments by Type
3. Compliance with Investment Policy
4. General Fund Budget Report
5. Revenue and Expense Trend Charts
8-2
City of Cupertino
Investment Portfolio
February 29, 2008
A I l Y A E EREST Y AAJU TED MA T UNREALIZED
D O R o Maturi V VA E P
SECURITIES MATURED/CALLED
11/30/05 Q4/07/IO FFCB callable 3.70% 5.02% 1,000,000 1,000,000 1,000,000 0
03!16/04 03/16/09 FNMAcallable 4.OI% 4.01% 1,600,000 1,600,000 1,600,000 . 0
02/03/06 02/04/08 PrimsSouth Bank 4.65% 4.65% 97,000 97,000 97,000 0
02!10/06 02/i l/OS Florida Communi Bank 4.75% 4.75% 99 000 99,000 99,000 0
02/25/04 02/25/08 FHLMC 3.13% 3.I3% 1,000,000 1,OOD,000 1,000,000 0
SECURITIES PURCHASED
02/05/08 02/05/09 FFCB callable 3.00% 3.00% 1,000,000 1,000,000 1,000,000 0
02/19/08 02/15/09 US TreasuryNote 3.00% 1.77% 1,011,699 1,OOD,000 1,012,031 332
02129/08 06/12/08 US Treasury Bill 1.76% 1.80% 1,989,831 2,000,000 1,989,831 (0)
CITY PORTFOLIO
CASH
02/29/08 Welis Far o -Workers Com Checkin 15 601 15,601 15,601 0
02/29/08 Wells Faz o - Re 1az Checkin 853 653 853,653 853,653 0
02/29/08 Wells Faz o -Investment Swee 1.61% 1.61 % 30,222 30 222 30 22 0
899 476 849 476 899 476 0
LAIF
02/29/08 LAIF -State Pool 4.16% 4.16% 15 086 207 15 086 207 15 086 07 0
CERTIFICATES OF DEPOSIT
03/17!04 03/17/08 American Trost Fed Savin s Bank 3.00% 3.00% 99,000 99,000 98,975 25
03/19!04 03/19!08 Planters First Cordele GA 3.05% 3.05% 98,000 98,000 97 975 (25
03/24/04 03/24/08 Bad State Bank 3.00% 3.00% 99 000 99,000 98 63 37
03/24/04 03/24/08 Wilmot State Bank 3.00% 3.00% 99,000 99,000 98,463 (37
03/26/04 03/26/08 Private Bank & Trust 320% 3.20% 99 000 99,000 98,970 30
03/30/06 03C.L8/08 Fitst Geor is Baskin Co 5.05% 5.05% 99,000 99 000 99,100 100
04/07/04 04/07/08 Cole Ta for Bank, ste cou n 3.01% 3.01% 97 000 97,000 97,147 147
03/26/04 09/26/08 South Coast Communi Bank 3.20% 3.20% 98,000 98,000 97,952 48
11/23/07 11/20/OS Arizons$ank&Trust 4.88% 4.88% 10,106 10,108 10,108 0
11/23/07 11/20/08 Banktrust 4.88% 4.88% 94,000 94,Ot10 94,000 0
11/23/07 11/20/OS Cardinal State Bank 4.88% 4.88% 94,000 94,000 94,000 0
11/23/07 11/20/08 Colonial Bank NA 4.88% 4.88% 94,000 94,000 94,OOD 0
11/23!07 11/20/O8 Covenant Bank 4.88% 4.88% 94,000 94,000 94,000 0
11/23/07 11!20/08 Four Oaks Bank 8c Trust Co 4.88% 4.88% 94,000 94,000 94,000 0
11/23/07 11/20/08 Johnson Bank 4.88% 4.88% 94,000 94,D00 94,000 0
11/23/07 11/20/08 Midwest Bank of Western Illinois 4.88% 4.88% 94,000 94,000 94,000 0
11/23/07 11/20/O8 Solutions Bank 4,88% 4.88% 48,892 48,892 48,892 0
l 1/23/07 11/20/08 The Brand Banking Co 4.88% 4.88% 94,000 94,OOD 94,000 0
11/23/07 11/20/OS Vision Bank 4.88% 4.88% 94,040 94,000 94,000 0
11/23/07 11/23/08 Pinnacle Bank 4.88% 4.88% 95,000 95,000 95,000 0
03/17/04 03/17/09 Pe les State Bank 3.40% 3.40% 99 000 99,000 99,165 165
03/24/04 03/24/09 Washita State Bank 3.35% 3.35% 99,004 99,000 99 126 126-
12/30/05 12/30/09 Meridian Bank 4.80°/v 4.80% 99,000 99 000 101 79 2 279
12/28/05 12/28/10 Nat'l Bank ofNew York Ci 4.90% 4.90% 97 000 97 000 99,247 2,247
2182 000 18 000 2 186 862 4,862
MONEY MARKET FUNDS
02./29/08 Wells Far o Government 3.19% 3.19% 12,559,719 12,559 719 12,559 719
12 859 719 12 59 719 12 59 719 0
8-3
City of Cupertino
Investment Portfolio
February 29, 2008
I A E C.D ADIU TED MA ET UNREALIZED
A RA o Maturi E V
AGENCY NOTES
11/21/05 06/23/08 FPCB 5.79% 4.65% 1,003,342 1,000,000 1,009,060 5,718
01/30/08 09/12/08 FFCB 4.50% 2.70% ],009,462 1,000,000 1,010,000 538
01/28/08 10/01/08 FFCB discount note 2.68% 2.17% 983,994 1,000,000 987,200 3,206
12/30/03 12/30/08 FHLMC callable, sY cou n 4.75% 3.90% 1,000,000 1,000,000 1,018,980 18,980
02/05/08 02/05/09 FFCB callable 3.00% 3.00% 1,000,000 1,000,000 1,001,250 1,250
O1/14/08 04/14/09 FFCB callable 422% 4.22% 1,000,000 1,000,000 1,001,630 ],630
01/22/08 08/03/09 FFCB 525% 2.55% 1,037,458 1,000,000 1,041,560 4,102
Il/21/OS 07/12/10 FHLMC 4.13% 4.73% 987,239 1,000,000 1,036,560 49,321
11/19/07 11/19/10 FFCB callable 4.65% 4.63% 1,000,000 1,000,000 1,012,500 12,500
12/15/05 ~ 12/15/10 FHLMC callable 5.04% 5.04% 1,000,000 1,000,000 1,016,410 16,410
01/17/08 01/]7/12 FFCB callable 4.65% 4.65% 1,000,000 1,000,000 1,002,810 2,810
] 1 021495 11000 000 11 37 960 116 465
US TREASURY SECURITIES
12/20/07 04/30/08 US Trees Note 4.88% 3.01% 1,003,033 1,000,000 1,004,530 1,497
12/10/07 05/15/08 US Treasury Note 2.63% 3.17% 998,865 1,000,000 1,001,410 2,545
12/07/07 05/15/08 US Treasury Note 2.63% 325% 998,738 1,000,000 I,001,410 2,672
02/29/08 06/12/08 U5 Treasury Bi11 1.76% 1.80% 1,989,831 2,000,000 1,989,840 9
01/28/08 06/30/08 US Treasury Note 5.13% 225% 1,009,531 1,000,000 1,010,530 1,099
12/10!07 07/3U08 US Treasu Note 5.00% 327% 2,014,098 2,004,000 2,025,780 11,682
12/07/07 08!15/O8 US Treasury Note 4.13% 3.35% 1,003,437 1,000,000 1,010,230 6,793
12/10/07 08/3U08 UST Note 4.88% 3.34% 2,014,972 2,000,000 2,029,540 14,568
12/07/07 09/30/08 US TreasuryNote 4.63% 327% 1,007,630 1,000,000 1,016,170 8,540
12/10/07 09/30/OS UST Note 4.63% 329% 1,007,594 1,000,000 1,016,170 8,576
12/07/07 10/31/08 US Treasury Note 4.88% 3.27°/. 1,010,356 1,000,000 1,020,230 9,874
12/10/07 10/31/08 US Treasury Note 4.88% 3.25% 1,010,568 1,000,000 1,020,230 9,662
12/07!07 11/15/08 US Treasury Note 4.38% 3.31% 1,007,322 1,000,000 1,018,130 10,808
]2/10/07 11/15/08 US Trees Note 4.38% 3.27% 1,007,625 1,000,000 1,018,130 10,505
12/10/07 12/31/08 US Treasury Note 4.75% 3.18% 2,025,451 2,000,000 2,049,220 23,769
12!20/07 01/31/09 US Treasury Note 4.88% 3.06% 1,016,261 1,000,000 1,028,280 12,019
02!19/08 02/15/09 US Treasu Note 3.00% 1.77% 1,011,699 1,000,000 1,011,950 251
21137 012 21000 000 2] 71 880 134 868
Total Mana ed Portfolio
Avera a Yiel 3.49%
Avera a Len to Maturi in cars 0.48
TRUST PORTFOLIO STER TRUS
CASH
02/29/08 Wells Institutional Mone Mkt Acct 3.15% 3.15% 47,261 47 61 47 61 0
Total Trust Portfolio 47 261 47 261 47 261 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct Anilxic Assurance S $ond I I i
Bond Pa t Acct Wells Tr Plus Mone Mkt 2.16% 2.16% 1199 1,199 1,199 0
Total Bond Reserve Portfolio 1
8-4
5.5
Rate of Return Comparison
s.oa%
4.50%
tLAIF
-r-Gepertlna
4.00°k
3.50%
3.00% •I ~ , -, ~ ~ ~
's~1 p~o1 X01 ~o'l ~~p'l ~~ g~'l
a~~
5r~~
8-5
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
Februa 29 2008
Cate or Standard Comment
Treasury Issues No Limit Complies
US Agencies No limit Complies
Medium Term Corporate Bonds 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 for Treasuries and US Agencies) 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
a-s
Ci of Cu ertino
General Fund Bud et Re ort
February 29, 2008
Bad et Actaal
Prior Yesr Amended
2006/07 2007/08 2/28/2007 2/29/2008 Anal sis of Trends
Taxes:
Sales Tax 11 575,000 14 194,0(}0 7,218,916 8,815,456 Stron electronic ui .sector & ma'or new rovider
Pro a Tax 6,290,000 6,710000 3 743 032 3,798,726
Transient Occ anc 2 63 000 2 b60 000 1,580,103 1,749,569 Local business demand
Utili Tax 2 392,000 3,240,000 1,789,649 1 833 060 '
Franchise Fees 2,500,000 2,580,000 998,852 999,703
Other Taxes 2 308 000 1,400,000 1,651,173 978 342 AMC & Whole Foods construction tax last ear
Licenses and Permits 3,050 000 3 030 000 2,073,527 1,787,578 Buildin ermits down
Use of Mone & Pro 1,380,000 2,100,000 1,061,048 1235 476 Stron cash osition
Inter vernmental 4,706 114 4 505 071 2 559,740 2,449,026 SB 90 claims down• Last s VLF included corrections
Charges for Services I,482,000 1,150,000 1,028,538 781,412 Residential development down
Fines & Forfeitures 680,000 800 000 343 998 348,761
Other Revenue 140,000 116,200 140 178 53,739
Sale of Pro a 1,600,000
Total Revenue 40 466 114 42 481 271 24 188 754 24 3 84 U 3
O eratin Ex eaditutes:
Administrative 1,362,195 1,524,095 856,437 898,571
Law Enforcement 7,177,378 7,871 526 4 685,201 5,129,376 U 9%, but below bud ted increase
Communi Service 917,644 1,275,848 703 435 729 440
Admnistrative Service 4,978,440 4 545 811 2,628,379 2,629,362
Recreation Service 2,428 298 3,908,359 1,170,121 2,294 369 BBF and Senior Center Ente rises this ear
Communi Develo ment 3,885,441 3 897,479 2,068,477 2,176,258
Public Works 9 845 280 1 I I50 340 5,998 823 ~ 6,566 860 U 9%, but below bud eted increase
Total Bx enditures 4 4 7 4 8.11 2 424 2 U 13%, but forecasted to end u below bud et
Transfers In 1,459 974 880 164 333,328 603,492 Resowce Recovery; CIP close-outs; Sr Ctr ente rise
Transfers Out -7 026 296 -17 464 750 -10,212,332 -10 432 000 New CIP
Net Gain/ Loss 4 05 -8 7 123 -5 42 9 2
ao
Sales Tax Projections vs. Actual
$10,000
'o $8,000
w
$8,000
0
$4,ooa
$2,000
$a
---~-Projected, per budget ~, ~
~~Actual
.~
~ .
_.
8/07 9107 10/07 11107 12/07 1/08 after 2/08
budget
change
Month
Property Tax Projections vs. Actual
$s,0oa
o $a,oao
s
d- r
c $3,000
a
$2,000
r
$1,000
$0
---~~ProJected, per budget
--~~Actual
8107 9/07 10!07 11!07 12107 1108 after 210
budget
change
Month
8-8
Transient Occupancy Tax Projected vs. Actual
~, 2,000
~ 1,600
1,200
0
0
m 800 -
~oo -
- o-
--~--Projected, per budget
-~-Actual
~ „~
- ~
~~
r
8/07 9107 10/07 11107 12/07 1/08 after 2108
_ budget
change
Month
Licenses & Permits Projected vs. Actual
W 2, 000
b
w
io
a 1,aoo
0
~'~ ,,.. ~
~ ~
r ~~
.r
~ i ~ -~--Projected, per budget
--~-Acfual
8/07 9/07 10/07
11 /07 12107 1 /08 after 2108
budget
change
Month
8-9
Charges for Services Projected vs. Actual
~, 2,000
'a
N
7
g} O -
N ~
M
{d
~ 1,000
L
`~
r
0
---~--Projected, per budget
-E--Actual
~r r ..r
r
8107 9107 10107 11107
Month
12/07 1108 after 2108
budget
change
Genera! Fund Expenditures Projected vs. Actual
N 25,000
C
0 2a,ooo
s
~s F
15,000
0
0
H
~ 10,000
m
5,ooa
0
Month
s-~o
8107 9107 10107 11 /07 12/07 1108 after .2/08
budget
change