08. Treasurer's Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
CITY 0
CUPEIQ1NO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. ~
Meeting Date: December 6, 2005
SUBJECT
Accept the Treasurer's Investment and Budget Report for October 2005,
BACKGROUND
Attached is the Treasurer's Investment and Budget report for the period ended October
31, 2005. The report includes all funds in control of the City.
Investments
The market value of the City's portfolio totaled $38.5 million at October 31, 2005, with a
maturity or face value of $39 million. The market value of the portfolio is lower than
their maturity value because as interest rates have risen, older securities in the portfolio
with low fixed interest rates are valued at a lower price in the market. This difference
between market and maturity value is an unrealized paper loss at this specific date. At
maturity however, market and maturity value is the same and the City intends to hold
these investments until maturity and redeem their full value.
The Local Agency Investment Fund (LAIF) yielded 3.46% in October compared to 3.32%
in the previous month and 1.89% a year ago. The City's portfolio as a whole yielded
3.14% in October up slightly from 3.10% the previous month and 2.43% a year ago. As
interest rates have risen, the yield on a variable-rate investment such as LAIF has climbed
above the fixed rates of certain individual securities in the portfolio. With the low interest
rate environment of recent years, staff kept the average length to maturity low, but the
current higher interest rates are signaling a growing opportunity to lock-in on the higher
yields.
The City's cash and investment holdings increased $0.2 million during October.
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.
Printed on Recycled Paper
f-l
Revenue/Expenditure Trends
Permit, planning, and engineering revenues continue to lead the fiscal 2005-06 revenue
picture. Licenses and permits are at $1.5 million through the first four months of the year
compared to nearly $0.9 million a year ago. Related charges for services are at $0.8
million through October compared to $0.4 million a year ago. Staff does not anticipate
this pace to continue as this revenue growth should slow down during the winter.
Sales taxes are at $2.8 million through October, compared to $2.5 million for the quarter
a year ago. Overall General Fund revenues year-to-date are at $8.3 million, a 21 %
increase over the $6.9 million from a year ago, led by the increases in permit revenues
and sales taxes. The General Fund had budgeted overall revenues to decrease by 3% from
last year's year-end results, led by a decrease in intergovernmental revenues, with taxes
and permit revenues being relatively unchanged from last year.
General Fund expenditures of'$8.8 million for July through October 2005 represent a
13% increase over $7.8 million of last year. Increased sheriff contract costs, election
costs, building permit work, and park, street lighting and facility maintenance are factors
in the rise.
RECOMMENDATION:
Accept the Treasurer's Investment and Budget report for October 2005.
Submitted by:
N/A----
David Woo
Deputy Treasurer
Approved for submission:
~
David W. Knapp
City Manager
ð-~2.
City of Cupertino
October 31,2005
PURCHASE MATURES INTEREST ADJUSTED MATURITY MARKET UNREALIZED
DATE AT DESCRIPTION RATE COST VALUE VALUE PROFITILOSS
- -
SECURITIES MATURED/CALLED
None
SECURITIES PURCHASED
None
CURRENT PORTFOLIO
CASH
10/31/05 Wells Fargo Cash 252 252 252 0
10/31/05 Wells Fargo - Workers Comp Checking 29,345 29,345 29,345 0
10/31/05 Wells Fargo - Regular Checking 761,518 761,518 761,518 0
10/31/05 Wells Fargo - Money Market Checking 3.49% 581,959 581,959 581,959 0
1,373,074 1,373,074 1,373,074 0
LAIF
10/31/05 LAIF - State Pool 3.46% 14,827,402 14,827,402 14,827,402 0
CERTIFICATES OF DEPOSIT
03/17/04 03/17/08 American Trust Fed Savings Bank 3.00% 99,000 99,000 94,934 (4,066)
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99,000 94,899 (4,101)
04/07/04 04/07/08 Cole Taylor Bank ,step 2.25% 97,000 97,000 94,477 (2,523 )
03/17/04 03/17/09 Peoples State Bank 3.40% 99,000 99,000 94,283 (4,717)
03/19/04 03/19/08 Plantersfirst Cordell GA 3.05% 98,000 98,000 94,106 (3,894)
03/26/04 03/26/08 Privatebank & Trust 3.20% 99,000 99,000 95,335 (3,665)
03/24/04 09/24/07 Signature Bank Nat1 Assn 2.70% 99,000 99,000 95,288 (3,712)
03/26/04 09/26/08 Southcoast Conununtiy Bank 3.20% 98,000 98,000 93,574 (4,426)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 94,098 (4,902)
~ 03/24/04 03/24/08 Wilmot State Bank 3.00% 99,000 99,000 94,898 (4,102)
\
W
City of Cupertino
October 31,2005
PURCHASE MATURES INTEREST ADJUSTED MATURITY MARKET UNREALIZED
DATE AT DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
.
986,000 986,000 945,892 (40,108)
MONEY MARKET FUNDS
10/31/05 Wells Fargo Gov't Agency Money Marke 3.49% 822,386 822,386 822,386 0
1 822,386 822,386 822,386 0
AGENCY NOTES
08/24/04 02/24/06 FHLB callable 2.75% 1,200,000 1,200,000 1,194,000 (6,000)
07/21/03 07/21/06 FHLB callable 2.20% 500,000 500,000 491,875 (8,125)
08/07/03 08/07/06 FHLB callable, interest step up 2.33% 500,000 500,000 493,440 (6,560)
08/11103 08/11106 FHLB callable 2.50% 2,400,000 2,400,000 2,363,256 (36,744)
03/08/04 12/26/06 FHLMC callable 2.30% 793,903 800,000 779,624 (14,279)
07/09193 04/15107 FHLMC 6.82% 74,020 108,741 60,971 (13,049)
04/30/04 04/30/07 FHLMC callable 3.30% 499,988 500,000 490,760 (9,228)
12/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 973,130 (26,870)
04118/05 10/18107 FHLB adjustable rate 3.57% 1,500,000 1,500,000 1,497,780 (2,220)
04/14/04 12/03/07 FNMA callable 2.50% 992,479 1,000,000 957,190 (35,289)
12/05/03 12/05/07 FNMA callable, interest step up 2.63% 1,000,000 1,000,000 990,630 (9,370)
04/23/04 01/23/08 FHLB callable 3.15% 1,490,954 1,500,000 1,429,215 (61,739)
02/25/04 02/25/08 FHLMC 3.13% 1,000,000 1,000,000 966,940 (33,060)
01/12/04 08/06/08 FHLB callable, interest step up 3.50% 998,865 1,000,000 981,880 (16,985)
04/29/04 10129108 FHLB callable, interest step up 3.25% 300,000 300,000 292,032 (7,968)
12/15/03 12/15108 FHLMC callable, interest step up 3.50% 1,000,000 1,000,000 986,580 (13,420)
12/30/03 12/30/08 FHLMC callable, interest step up 2.75% 1,000,000 1,000,000 996,180 (3,820)
03/23/04 01/30/09 FNMA callable 2.50% 500,000 500,000 496,875 (3,125)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 ,600,000 1,560,000 (40,000)
03/30/04 03/30/09 FHLB callable, interest step up 3.50% 600,000 600,000 593,250 (6,750)
~ 04/30/04 04/30/09 FHLB callable, interest step up 3.13% 1,000,000 ,000,000 990,000 (10,000)
I
-.c:
City of Cupertino
October 31,2005
UNREALIZED
PROFIT/LOSS
MARKET
VALUE
MATURITY
VALUE
ADJUSTED
COST
INTEREST
RATE
DESCRIPTION
MATURES
AT
PURCHASE
DATE
(364,600)
1,368
1,368
19,585,608
984,180
984,180
20,008,741
1,000,000
1,000,000
19,950,208
982,812
982,812
2.38%
US GOVERNMENT SECURITIES
03/31/05 08/31/06 US Treasury Note
38,538,542
39.017.603
38,941,882
3.14%
1.16
(in years)
Maturity
Total Managed Portfolio
Average Yield
Average Length
to
TRUST & AGENCY PORTFOLIO
CERTIFICATES OF DEPOSIT:
07/27/01 0/31/05
o
o
42,603
42.603
42,603
42,603
42,603
42,603
2.93%
Cupertino Natl(Kester Trust)
& Agency Portfolio
Total Trust
o
o
o
11,115
1
2,065
13.180
115
1
2,065
13,180
11
11,115
1
2,065
13,180
2.97%
2.97%
BOND RESERVE PORTFOLIO
Money Mkt
Ambac Assurance Security Bond
Wells Fargo Treasury Plus Money Mkt
Wells Fargo Treasury Plus
Bond Reserve Acct #078791
Bond Reserve Acct #078793
Bond Reserve Acct #078794
Total Bond Reserve Portfolio
~
c1
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Investments by Type
Managed Portfolio
US Treasury Notes
J%
Agency Notes
50%
CO's
J%
I Rate of Return Comparison I
5/04 6/04 7/04 8/04 9/04 10/04 11/04 12/04 1/05 2/05 3/05 4/05 5/05 6/05 7105 8/05 9/05 10/05
"""-LAIF
_Cupertino
'0 -~
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
October 31, 2005
Category
Treasury Issues
US Agencies (eg FHLMC)
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
No limit
No limit
30% with A rating
$40 million
20%
25% up to 15 years
Remainder 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
Complies
Comment
t-1
I
I
Ci~()~Çu~eI"tillo_ _"~
General Fund Budget ReI'.0rt
2005
---
T
~---
Property Tax 3,748,000 4,157,000 31 21 357,869
- --" ... -- - - ----- --:-1-
Transient Occupancy 1,560,000 1,730,000 42 I! 520,781
--------------------------- --- ------- --t ---- -----..-
Utility Tax ¡ 2,740,000. 2,675,000 56 2! 609,761
Franchise-Fees--- ,-, I 2,3Ü,Ooor- 2,300,000 33 g:- 348~983
Other Taxes : 1,435,000l 1,550,0001 45 r 501,715
!-ice."se;~d p,,-;...uts 1 __ 1,600,000 2,800,0061 ,- 89 _8 1,511 ,0_3,2 "
------ - ..-
Use of Money & Property 1,186,9001 1,075,000 35 0; 314,396
----·-···-~_··-·--·t- -- : I
Intergovenunenta1 2,820,6871 3,152,000 54 2: 251,535r
Charges!0r Servic"s 490,0001 '-¡,285,Óool_-:-=_:J5_ ~L=-- _ .s.33¿~
Fines & Forfeitures _____6()0,0001 650,0001 9 21 119,0421
__on'. __ ._---+______ ____._, .
Other Revenue , 162,000' 116,200 51 62,819
Sale of Property -----T 1,500,000' 1,500,000' 1
Total Revenue 28554587 32 140200; 68563701_ 82950261
, 1 1
._________n__ ____nun_un' _____~-___+__--_-. - ----1
Qp.e.ratingExpenditures: '_. !
Administrative 1,365,026, 1,345,235 331,635 -347,467!
LaW,Enfi" 0, rcement--' --6,853,724'-_Ti79,878 '+" },080,2,98 _ _1,24,4,0,,3,,2',: Contract increased 11 % fo.! news."bstation_and retirelllent
COlIlIllunity Service _ __ 718,355 839,445.:. __136,484J.___ 279,076, Golden Jubilee in 2005 ________n_
Administrative Servico,,-___ 4,191,024___ _4,933,663! 1,380,152 1,588,3931 Increase due to election co,,~
Recreation Service . 2,261,219.__ _1,4:33,909:_ 677,92~ 737,610' I In-line with budget increase ,,___""_
COnununity Deve10pmen! ;__2,823,865 3,795,086, 750,255 __84:2,219 LTo service the increase in building activity
II Some restored positions and good weather has allowed a reduction in the
2,793,423: deferred maintenance backlog.
- 8 832 220' r
~ --t
Analysis of Trends
___L
Actual
10/31~:04J 1:/~1I2005
2,505,617j__2,863,565
-
Budget
i
October 31,
2005/06
2004/05
Taxes:
Sales Tax
-
---
Unsecured $306k in 2005, $302k in 2004: November secured $402k in 2005,
$359k in 2004
-----------
Individual hotels up
2004/05
-----.--
to 37%
'l.tr bui1din£. activity plus cost recovery rates.
2003/04 VLF received in 1st qtr of 2004/05 was recorded in
Robust 1 st qtr building aciîviïypiûšcostrecoveryrnies: --,
10%
st
Robust
150,000
9,
---.8.,400,000
--
-
-
costs.
-º~~~ti~nJ~yen~e.Æ~r aquarium and Golden Jubilee
0a1c,,,'alley lots sold in November 2005
-----
2,370,663
7827410
~33,336
,772,667
~-
912,452!
~
-1679919
-I
un
-I
-
-1 776525:
¡
9,797,933'
10125 149
1,600,00oT-T-
-------- .---- '----+-
-5,168,000' 1
1
-1752949' :
-r--
I
9,367,424
27580617'
-----------.-,
2,737,365
-4,864,000
Public Works
_..1' ota1 Expendilllres
Operating Transfers In
OJ'erating Transfers gllt
~_-1152 685
Net Loss
""'i'
~
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
-500,000
2 3 4 6 7
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
Revenue Comparison
l1l8I
"'"
9
10
11
12
13
Expenditure CornparisoD'
500,000
o
3
6
7
4
5
I Sales Tax
2 Property Tax
3 T ranscient Occupancy
4 Utility Tax
5 Franchise Fees
6 Other Taxes
7 Licenses & Permits
8 Use of Money &
Property
9lntergovenunental
10 Charges for Services
II Fines & Forfeitures
120lherRevenue
13 Sale of Property
.YTO 10/31/04
~YTO 10/31/05
I Administrative
2 Law Enforcement
3CommurutyService
4 Administrative Service
5 Recreation Service
6 Corrunuruty Development
7 Public Works
t-9
$4,000,000
$3.000,000
'"
2
~
c
6 $2,000.000
....
¿
~
~
>-
$1,000,000
$0
$400,000
'"
~
1;
c
6 $200,000
....
~
~
>-
$0
7/05
Sales Tax Fiscal Year-To-Date 2005-06
7/05
8/05
-.....
--
--+- Projected
. Actual
9/05
10/05
Month
Property Tax Fiscal Year-To-Date 2005-06
--+-Projected
. Actual
8/05
.
/
/
/
--
/
/
-.'
9/05
10105
Month
f.-1D
$600,000
$ 500.000
$400,000
...
ø
..
C
b $300.000
t;-
o
.
ø
>-
$200,000
$100,000
$2,500,000
$2,000,000 -
': $1,500,000
..
c
b
'¿
.
:! $1,000,000
$500,000
Transient Occupancy Tax Fiscal Year-To-Date 2005-06
$0
""",;,,,..-. ,."",,'.
"",.,."""",.""",..",.,, ".,;,,,,,,,,",..,,.,;,,.,
.,
", ..,
.,'" - +
-- - -
- -
,,' Þ-
.....
.....
.,., .....
-, "; .....
,,' ..------~--
"i /
,.,
..c" ,..
.""
";,,,.. ,.. --.- Projected
. ,.. .,,,.,,,,..',,,,, Actual
,..
¥"
-.-----. --
7/05
8/05
9/05
10105
Month
Planning, Building & Engineering Fees Fiscal Year-To-Date 2005-06
--'-Projected
. Actual
.....
--
--
~.....
--
-
-.....
-
-+
--
-...-
$0
7/05
8/05
9/05
10/05
Month
t- \I
General Fund Expenditures Fiscal Year-to-Date 2005-06
$12,000,000
$10,000,000
... $8,000,000
..
-
..
c
, $6,000,000
0
I-
0
~
..
..
>- $4.000,000
$2,000,000 ....
$0
7/05
8/05
Month
......
---'-Budget
. Actual
9/05
10/05
'0-1 ;)....
Capital Projects
October 31 , 2005
Current Bat
157,178.40
874.170.88
3.00
5,000.00
30,219.00
156,358.29
99,831.08
2,116.778.08
500,000.00
70.217.83
49.378.49
_ 30.000.00
40230.94 2,846.95
_1,247.35 52,478.65_
6,0!¡¡~28 __~,~
0.00 46.48
-----
0.00 _ 296.200.0~
0.00 107..5541~
,39.93~~º-
261.251.07
47.686.55
238.747.55
142.794.37
8.096.71
2.500.00
475.000,00
200.000.00_
75,000'00_
346,293.49_
4,258,709.54
6,360,867.04
528,394.96.,
111,450.00
17,644,789.51
I
!
Excenditure
15,383.66
13,641.01
52,000.55
0.00
0.00
68,960.45
0.00
0.00
732.60
4,059.38
0.00
50,290.12
111,062.93
375,226.50
0.00
0.00
chance_ T~taIß_udaet ~ Encumbrance
175.882.06 3,320.00
930.499.14 42,687.25
52.003.55 0.00
5.000.00
,30,219.00
_,. .16~301.91 9,943.62
106,791.08 6,960.00
2,240,278.53 54.540.00
..§.OO.OOO.OO
300.034.53 229,816.70
, 49.378.49
'1 30,000.00
, nT, 174.138.76 130,760.87 i
::.1 53,726.00
L_., n_--+ 25,293.82 19.215.5,4..-
.J.. 47,Q46.48 47.000,00J
250.000.00 i--- 50,000.00 310.000.00 13.800.00 '
- ~ " 128.686.70 21:132.50
. - ,. 39,936.90 n . -. , .
----+---- ---.-- ---------..-
, ~1.2¡¡107
47.686.55
24iÙ13.17 10.575.62
-.- _.,.-1 '-'14..3..5.'26.97 0.00
___ __ _ 12,156.09 0.00
i ' 2,500.00
i _475,000.00
¡. ,200,000.00
. ¡ 75.000.00
I . .396.583.61
. 4,449.945.95
8,232,049.59
i 528.394.96~
---1-111:450.00
__ ___._l~_---·-·--·---
50,000.00 ¡ 20.550.084.91
80,173.48
,495,956.05
1
,
----+
I
,50.000.00 ~
10,000.00 I
I
I
~
75,000.00 I
.652,000.00 ~
2,416,000
+
,
10/3112005
Adooted
141.502
.085.000
500.000
392.98361 +
-- ..._.-- --------+-
2.607,080.73' 1
5,273,006.76
528,394.96 I
111,~50;QOT::'
· . , --I--
12.843.780.14 ¡ 6,179.502.00
1
70.217.83
49.3Z1J,,49,
30ßOO.00_
2,646.95 ,
-----:;;-;;-T
53.726.00
. 0.00 I
47.046.48
10,000.00
107.554.20
39.93.6.90
2. .6...1.....251....()Z...t......
47.686.55
----------
238.7£.,55 .
· ~.526c.97
, 2.151J,,09
· 2.500c°.o,
475,00o,()ºJ
200,00O,QO '!
CIO enc CIO budoet i
3.320.00 . 31,060.013¡-
----- -- -- 1-
120,353.00 810,146.14J
52.000.55+- ., nn_ 3,00 +
l '3ð:~~~~H
9,943.62-' 156,358.i9 '
6,960:00;- 99.831:08
-------,- -----
88~407,1 0: 1.066,87.1.,,43
0.00 .
o.oOT
----'r-
I
l
Fund Proi#' _ _ Oesçr1Etion
210 9612! Mino~ ~~?rm Dra!.r:! lrT!prov
215 9620 'Storm Drain Proje~
270 9430' Stev Canyon Rdwidening
270 9435 Neigh,boriloocHraf calming
270 9436 Stev Crk Trail Bike facilities
270 9443 B()lIingerRd,bike facility improv.
270 9447 Mary_A.venue gateway
270 945-º- _P~veEnent Management
270 9451 C,urb,gutter.and slw repairs -..,,1
2701 9531 Raml'rnetersignal280/85 229,816.701
270 9532 SR85/Stev Crk TIS modification
- ~....------------ -. .-
270 9701 Sidewalk gaps unimprv areas ¡
~. ,9 2.1..,3.M. ".Cle."an ~-"."-Ch bldg improv. 1]'1,4.91....8.1.l
420 9_11 §¡ San Thomas trail improvements nnnn._n'
420 9225·CH space study 25,293.82
- 420 92i8'lcH councii chamberremodel -----0:00 ¡
- 420 . 9229TcH emergency generator -1--- ---.--.¡-
.. 420 . ..9528!2801W0~e traffic safety imp",,,.· " 21-;-132-:-So!
I ------- .
420 9530 'Phase III Hmstd arterialm~mt
420 9533 Green LED TIS Iigl115" ,
420 9541 School traffic ~frnfn9__rT1eê3Sure--T
420 9544 Safe routes- CHS ' . -.----¡-
- -42Or 9545 TIS uP9-raae~ VB.riOUS¡Oca¡¡oos f
420 i 9547 yeHo.. pëd_LEDj'7Supgrades
420 [ 9548 Traf st walkability mods facility
~=--........ ..,,-
420 I 9549 Safe route Garden Gate school
---1--___ -__________
420' 9550 T ISbattery ]JoINer backup
420, 955.1 LaINrence.Mi!t)l excha~
423; 9222 Library construction
4271 9112!S¡¡;vë"s Crl(ooiiidor park
428. 944~, Mary Avenue Footbridge
5601 9105 ¡ Blackberry Farm
570 923º-lJennis court r~iúrlacTng--
~-- --
10.575.62
~f
--I
3.600.00 I
190.865.22
543,042.83
0.00
0.00
T
!
~
¡
739,413.77
0.00
0.00 '
.63
65,881
1
2.
,
,476,802.77
1
Total
D,:>
1
-
w