07 Treasurer's Report
i.;~1
ii\\\ /,
------:J
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
ITY F
CUPEIQ1NO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. ï
Meeting Date: April 4, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for February 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended February 28, 2006.
The report includes all funds in control of the City.
The market value of the City's portfolio totaled $43.2 million at February 28, 2006, with
a maturity or face value of $43.6 million. As interest rates continue to rise, the market
value of the portfolio continues to be lower than maturity value, as the older, low fixed
interest rate securities in the portfolio are being valued at a lower price by 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 4.04% in February, an improvement
from 3.96% in the previous month and 2.37% a year ago. The City's portfolio as a whole
yielded 3.74% in February up from 3.65% the previous month and 2.62% a year ago.
Short-term interest rates continue to rise reflecting the market's anticipation of more
Federal Reserve interest rate hikes. Long-term interest rates remain relatively steady.
The City's cash and investment holdings decreased $1.2 million during the month
reflecting two months of law enforcement contract payments and a quarterly sales tax
adjustment. A low interest $1.2 million Federal agency security matured during the
month. About half of the amount was re-invested in CD's at higher interest and the rest
was left in the high-yielding money market fund for later re-investment.
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
7 -(
RECOMMENDATION
Accept the Treasurer's Investment Report for February 2006.
Submitted by:
c:kJ-~
Approved for submission:
~
David W. Knapp
City Manager
David R. Woo
Deputy Treasurer
7-J-
City of Cupertino
February 28, 2006
I ý DATE MAIUKJI Y
MAlURrry 'HuN RATE COST VALUE VALUE PROFIT/LOSS
I
TlES MATURED
08/24/04 02124/06 HLB callable 2.75% 1,200,000 1,200,000 1,200,000 0
02/03/06 05/0 1107 Mountain National Bank 4.60% 98,794 99,000 98,492 (302)
02/03/06 08/03/07 Business Bank of Fox River 4.6()01o 99,000 99,000 98,369 (631)
02/03/06 02104/08 PrimeSouth Bank 4.65% 97,000 97,000 96,212 I (788)
02/1 0/06 02111/08 Florida Community Bank 4.75% 99,000 99,000 98,364 (636)
02101/06 02101111 FFCB callable 5.25% 250,000 250,000 249,062 (938)
CURRENT PORTFOLIO --
CASH
02/28/06 Wells Fargo a Workers Comp Checking 17,315 17,315 17,315 ..- 0
02/28106 Wells Fargo - Regular Checking 823,910 823,910 823,910 0
841,225 841,225 841,225, 0
-
,
LAIF
02128/06 LAlF - State Pool 4.04% 11,648,125 11,648,125 11,648,125 0
I --
CERTIFICATES OF DEPOSIT --
02103106 05/01/07 Mountain National Bank 4.60% 98,794 99,000 98,492 --(302)
01127106 07127/07 Lehman Bras Bank 4.60% 97,000 97,000 96,390 (610)
02103106 08103/07 Business Bank or Fox River 4.60% 99,000 - 99,000 98,369 (631)
03124104 09124/07 Signature Bank Nat'l Assn 2.70% 99,000 99,000 95,473 (3,527)
02103/06 02104/08 PrimeSouth Bank 4.65% 97,000 97,000 96,212 (788)
02/10/06 02111108 Florida Community Bank 4.75% 99,000 99,000 98,364 (636)
03117/04 03/17/08 American Trust Fed Savmgs Bank 3.00% 99,000 99,000 94,962 (4,038)
03/19104 03/19/08 Plantersftrst Cordell GA 3.05% 98,000 98,000 94,128 (3,872)
03/24/04 03124/08 Badger State Bank 3.00% 99,000 99,000 94,922 -ir,om
03124/04 03/24/08 Wilmot State Bank 3.00% 99,000 99,000 94.922 (4,078)
03/26/04 03126/08 Prlvatebank & Trust 3.20% 99,000 99,000 95,298 (3,702)
04/07104 04/07/08 Cole Taylor Bank ,step 2.25% 97,000 97,000 94,789 -- (2,211)
03126/04 09126/08 Southcoast Communtiy Bank 3.20% 98,000 98,000 93,450 (4,550)
03117104 03117/09 Peoples State Bank 3.40% 99,000 99,000 94,068 (4,932)
03/24104 03124/09 Washita State Bank .- 3.35% 99,000 99,000 93,89t (5,103)
12130/05 12/30/09 Meridian Bank 4.80% 99,000 99,000 I 97,641 r-- (1,359)
12128/05 12128/10 Nat'l Bank of New York City 4.90% 97,000 97,000 95:598 I (1,402)
!
1,672,794 1,673,000 1,626,975 (45,819)
MONEY MARKET FUNDS
02128106 Wells Fargo Government 4.34% 5,019,432 5,019,432 5,019,432
5,019,432 5,019,432 5,019,432 0
i
AGENCY NOTES !
--
07121/03 07121106 FHLB callable 2.20% 500,000 500,000 494,845 (5,155)
08/07/03 08/07/06 FHLB callable, step coupon 2.75% 500,000 500,000 495,470 (4,530)
08/11103 08/11106 FHLB callable 2.50% 2,400,000 2,400,000 2,374,512 (25,488)
03/08/04 12126106 FHLMC callable 2.30% 795,641 800,000 783,256 (12,385)
07/09/93 04/15/07 FHLMC series 1231 6.58% 44.562 42,848 42,789 (1,773)
04/30104 04/30/07 FHLMC callable 3.30% 499,990 500,000 490,750 (9,240)
7- 3
City of Cupertino
February 28, 2006
ACTIV\'I "
~ DE RATE COST VALUE VALUE PROFmw"
12/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 979,380 (20,620)
04/18/05 10/18/07 FHLB adjustable rate 4.05% 1,500,000 1,500,000 1,497,690 (2.310)
04/14/04 TIJiITT07 FNMA callable 2.50% 993,662 1,000,000 960,000 (33,662)
12/13/05 12128/07 FFCB 4.75% 1,000,879 1,000,000 997,190 (3,689)
04123104 01123/08 FHLB callable 3.15% 1,492,287 1,500,000 1,452,660 (39,627)
02/25104 02125/08 FHLMC 3.13% 1,000,000 1.000,000 966,640 (33,360)
11/21/05 06/23/08 FFCB 5.79% -- 1,024,583 1,000,000 1,019,000 (57,943)
01112104 08/06/08 FHLS callable, step coupon 3.50% 999,000 1,000,000 982,190 -- (16,810)
04/29/04 10/29/08 FHLS callable, step coupon 3.25% 300,000 300,000 292,125 (7,875)
12/15/03 12/15/08 FHLMC callable, step coupon 4.00% 1,000,000 1,000,000 986,480 (13,520)
12/30/03 12130/08 FHLMC callable, step coupon 4.75% 1,000,000 1,000,000 995,490 (4,510)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 ._.n 1,600,000 1,557,504 , (42,496)
03/30104 03/30/09 FHLS callable, step coupon 3.50% 600,000 600,000 593,628 i (6,372)
04130/04 04/30/09 FHLS callable, step coupon 3.13% 1,000,000 1,000,000 995,630 i (4,370)
12128/05 12/28/09 FHLS callable 5.04% 915,000 915,000 910,425 ! (4,575)
11/30/05 04/07/10 PPCB callable --- 3.70% 951,842 1,000,000 953,440 1,598
11/21105 07112/10 FHLMC 4.13% 976,442 1,000,000 968,750 (7,692)
12/15/05 12/15/10 FHLMC callable - 5.04% 1,000,000 1,000,000 995,190 (4,810)
02/01106 02/01111 FPCB callable 5.25% 250,000 250,000 249,062 -------,~
_m_ (938)
23,343,888 23,407,848 23,034,096 (362,152)
US GOVERNMENT SECURITIES --
03131105 08/31/06 US Treasury Note 2.38% 982,812 1,000,000 988,400 5,588
982,812 1,HO,OOO 988,400 5,588
OIifManage fl'Oi"II'Olío 4J,>UO':.<7' 1f.J,~ö',b.JU 4J,..0""
Average YleldT - 3.760/. , ... ,._~
Average Lengtb to Maturity (in years) 1,34 ---
---
TRUST & AGENCY PORTFOLIO --
CERTlFlCA TES OF DEPOSIT: -- -
07127/01 I 02/28106 ¡Cupertino Natl(Kester Trust) 2.93% 42,911 42,911 42,911 0
I I
otãfTrusi"& Agu£y Portfolio 42,911 41,911 42,911 0
---
BOND RESERVE PORTFOLIO
Bond Reserve Acet #078793 Ambae Assurance Security Bond I 1 1
Bond Payment Acct #078794 Wells Fargo Treasury Plus Money M 3.75% 12,958 12,958 12,958 0
otal DODd Resenri"POrtfOlio u,... u,... u,... U
--~,
i
M_' :
I +
i ,
i -t-
i
: +---
I
,
7-'f
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.0011/0
Investments by Type
Managed Portfolio
US Treasuries
2%
Agency Notes
53%
Cash
2%
I Rate of Return Comparison I
2/05
5/05
8/05
9/05 10/05 11/05 12/05 1/06
6/05
3/05
4/05
7/05
2/06
7-5
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
February 28, 2006
Cate !:ory Standard Comment
Treasurv Issues No limit Comolies
US Agencies No limit Complies
Medium Tenn Corporate Bonds/Notes 30% with A rating Comolies
LAIF $40 million Complies
Monev Market Funds 20% Complies
Maximum Maturities Uo to 5 vears Comolies
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 davs Complies
Reverse Reourchase alITeements Prohibited Comolies
]-h
Capital Projects
February 2006
Current Bal.
110,004,30
841,363,99
3,00
Excenditure
61,067,76
978,90
52,000,55
Encumbrance
4,810,00
88,156,25
0,00
5,000,00
30,219,00
156,358,29
106,791,08
2,041,893,08
110,075,00
60,787.49
49,378.49
30,000,00
(8,311.88
~3,25
__º,oo
46.48
282,015,00
107,554,20
39,936,90
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
45,130,61
4,196,376,35
6,226,939,69
528,394,96
111,450,00
88,035,00
6,658.45
0,00
89,337,04
167,940,65
9,430,34
51,453,00
136,868,64
1,080,182,45
0,00
111,047,65
1,912.75
10,413,68
10,604,11
6,313,95
0,00
8,679.07
732,60
4,059,38
0,00
3,285,17
0,00
109,048.41
221,984,35
229,816,70
116,700,96
924,927.45
0,00
0,00
14,601,82
71,402.99
14,880,14
36,395,89
21,671,05
21,132,50
1,896,55
0,00
0,00
Total Budoet
175,882,06
930,499,14
52,003.55
5,000.00
30,219,00
166,301,91
106,791,08
2,240,278,53
500,000,00
300,034,53
49,378.49
30,000.00
174,138.76
53,726.00
25,293,82
47,046.48
310,000,00
128,686,70
39,936,90
261,251,07
47,686,55
249,323,17
143,526,97
12,156,09
2,500.00
475,000,00
200,000,00
75,000,00
96,583,61
4,449,945.95
8,232,049.59
528,394,96
111,450,00
125,000,00
c~anae
Adopted
141,502
CIO budoet
31,060,06
810,146.14
3.00
ºº-=
3,320,00
120,353.00
52,000,55
50,000,00
{3oo,ooo.oo
16,662;330,53
0,00
22,363,18
1,832,044.15
1,085,000
500,000
1,652,000,00
2,416,000
1ß80,710,23
20,375,084,91
125,000.00
(125,000,00
250,000,00
50,000,00
10,000,00
75,000,00
6,179,502,00
12,843,780,14
1,476,802,77
Proi# Oescriction
9612 Minor Storm Drain Improv
9620 Storm Drain Projects
9430 Stev Canyon Rd widening
9435 Neiohborhood traf calming
9436 Slev Crk Trail Bike facilities
9443 Bollinger Rd bike facility improv,
9447 Marv Avenue gateway
9450 Pavement Mana ement
9451 Curb gutter and sIw repairs
9531 Ramp meter signal 280185
9532 SR851Stev Crk TIS modification
9701 Sidewalk naps unimprv areas
9213 McClellan Ranch bldo improv,
9116 San Thomas trail improvements
9225 CH space studv
9228 CH council chamber remodel
9229 CH emeroency generator
9528 280IWoife traffic safety improv.
9530 Phase III Hmstd arterial mgmt
9533 Green LED TIS lights
9541 School traffic calming measure
9544 Safe routes CHS
9545 TIS upgrades various locations
9547 Yellow ped LED TIS upgrades
9548 Traf st walkability mods facility
9549 Safe route Garden Gate school
9550 TIS battery power backup
9551 Lawrence Mitty exchange
9222 Library construction
9112 Slevens Crk corridor park
9449 Mary Avenue Footbridge
9105 Blackberry Farm
9230 Tennis court resurfacing
9231 Pool house ADA upgrade
Total
5,000.00
30,219,00
156,358,29
99,831,08
1,066,871.43
70,217,83
49,378.49
30,000,00
2,646,95
53,726.00
0,00
392,983,61
2,607,080,73
5,273,006,76
528,394.96
111,450,00
47,046.48
10,000,00
107,554,20
39,936,90
261,251,07
47,686,55
238,747,55
93,526,97
2,156,09
2,500,00
475,000.00
200,000,00
9,943.62
6,960,00
88,407,10
3,600,00
190,865.22
543,042,83
0,00
0,00
0,00
229,816,70
25,293,82
0,00
21,132,50
10,575,62
0,00
0,00
171,491,81
Fund
210
215
270
270
270
270
270
270
270
270
270
270
280
420
420
420
420
420
420
420
420
420
420
420
420
420
420
420
423
427
428
560
570
570
----\
I
--.j