07. Treasurers Investment & Budget ReportADMINISTRATIVE SERVICES DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE: • CUPERTINO, CA 95094-3255
(408) 777-3220 • FAX (408) 777-3909
SUMMARY
Agenda Item No. ~_
SUBJECT AND ISSUE
Meeting Date: 3uly 7, 2009
Accept the Treasurer's Investment and Budget Report for May 2009, including a report on
General Furid Revenues and Expenditures.
BACKGROUND
Investments
The market-value of the City's portfolio totaled $58.3 million, with a book value of $58.2
million at May 31, 2009. The $0.1 million unrealized gain reflects the higher value placed
on securities bought in 2008 and early 2009 at :higher interest rates. The portfolio's May
yield of 0.77% was down from 0.98% in the previous month and 2.94% a year ago due to
the decision to take the portfolio to a safe and liquid mix of investments, primarily U. S.
Treasury Securities, given the risk and volatility of the current market. The LAIF
benchmark was at 1.53% for May, down from l.ti1% the previous month and 3.07% a year
ago, reflective of their move to a higher percentage of investments backed by the full faith
and credit of the federal government.
The City's portfolio increased $2.1 million frorr~ the previous month due to property tax
receipts. These receipts plus $5 million in mature,i and called Treasuries and Agency Notes
and $0.9 million in cash were used to buy $~3 million of new short-term Treasuries.
Investments are in full compliance with City investment policy and State law and are tiered
to provide sufficient cash flows to pay City obligaxions over the next six months.
General Fund Revenues and Expenditures
Fiscal year-to-date revenues are up 3% from last year as of May. The recession continues
to impact transient occupancy taxes, property transfer taxes, vehicle license fees,
construction-related fees, and interest earnings. Construction activity continues its slump
with developers requesting extensions and phase--in plans for approved projects. Property
taxes, based on last year's market, are withstanding the economic downturn. Although our
sales tax looks strong, the increase is due to way that the state passes on the taxes to the
city, a method which lags the actual receipts remitted by businesses to the state. 2007/08's
strength is showing up on the city's books this year, but current sales taxes reported to the
state are down 10% this year, led by declines in both the retail and business-to-business
7-~
Treasurer's Investment and Budget Report
July 7, 2009
Page 2 of 2 .
sectors. Total General Fund revenues are forecasted to be on target with budget and 1%
above last year's results.
Year-to-date expenditures are up 2% from last year, but with a budgeted 5% increase for
General Fund programs, some year-end expenditure savings can be expected.
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for May 2009, including a report on
General Fund Revenues and Expenditures.
Submitted by:
~~ ~~
Carol A. Atwood
City Treasurer
Approved for submission:
David W. Knapp
City Manager
~-2
City of Cupertino
Investment Portfolio
May 3I, 2009
AC:17V1TY DATE i
___ SECURITIES MATURED
u07/17/O8 05/15/09 US Treasury Note 3.83% 2.06% 1,000,000 1,000,000 1,000,000 0
~0724/O8 05/15/09 US Treasury Note 3.88% 2.30% _
1,000,000 1,000,000 _
^ 1,000,000 _
"~` ~ 0
SECURITIES CALLED
05/19/08 11/19/10 FItLII callable 3.1:i% 3.15% _ 1,000,000 1,000,000 1,000,000 0
05/27/08 08/27/10 FIiLB callable 3.3(i% 3.30% 1,000,000 1,000,000 1,000,000 0
05/28/08 -^ 02/28/11 FHLB callable 3.4(1% 3.40% 1,000,000 1,000,000 _
1,000,000 ___
0
_
_
~ SECURITIES PURCHASED
05/14/09 07/31/10 US Treasury Note 2.7!~% 0.50% 3,078,433 3,000,000 3,077,100 (1,333)
052i/09 08/31/10 US Treasury Note ~~ -" _ _ 2.3F'% 0.50% 3,070,045 _3,000,000 3,067,260 (2,785)
05/29/09 09/30/10 US Treasury Note 2NOt~% 0.62% _ 2,036,486 __
" 2,000,000 2,037,580 ^
1,094
~ - ,
CITY PORTFOLIO
`~ `"" ~'--~-
CASH
- _ _ _ 05/31/09 Wells Fargo -Workers Comp Checking 17,341 17,341 17,341 0
05/31/09 Wells Fargo -Regular Checking 837,260 837,260 837,260 _ __
-- `0
05/31/09 Wells Fargo -Repurchase Agreements 0.10% 0.10% 230,206 230,206 230,206 0
LAIF ____ 1,084,807 1,1184,807 1,084,807 0
---------
05/31/09 LA1F -State Pool 1.53% 1.53% 587,959 587,959 58'1,959 0
CERTIFICATES OF DEPOSIT ---`~-~- "-~-"-
~
12/30/05
12/28/05 12/30/09
1228/]0 Meridian Bank NA, Wickenburg AZ
Nafl Bank of New York City, NY 4.80%
4.90'% 4.80%
4.90% 99,000
97,000 T 99,000
97,000 107,037
99,350 2,037
2,350
MONEY MARKET FUNDS
~ __ _ __
~- 196,000
^"~ 196,000
- - 200,387
-~"~ - ~ 4,387
OS/31/09
, Wells Fargo Government 0.15'% 0.15% 100,000 100,000 100,000 0
____ 05/31/09 Wells Fargo 100%Trcasury 0.01'% 0_Ol% 11,044,686 i 1,044,686 11,044,686 ~" 0
AGENCY NOT
ES _ ____
~ , 11,144,686 _1 (,144,686 11,144,686 0
---
V `
01/30/04 06/22/09 FE-ILB discount note 0.41!%
~ _0.41% _ __ 999,749
_.. 1,000,0
00 999,900 151
0122/08 08/03/09 FFCB 5.25`.'% 2.55% _
1,004,601 _
_
-1,000,000 __
1,0
08,440 3,839
0923/08_ 0923/09
~ FFCB 2.70% 2.57% 1,000,394 1,000,000 _
1,
007,500 7,106
0625/08 05/07/10 FFCB 4.755/0 3.38% 1,012,288 1,000,000 _
_
~ 1,038,130 25,842
05/07/08 06/11/10 _ FHLB_ 3.00°,/0 2.98% 1,000,206 1,000,000 1,023,750 23,544
07/28/08 -_072_8/10 FFCB callable 33050 3.30% 1,000,000 _
1,000,000 ~ 1,004,690 4,b90
01/30/09 09/10/10 FHLB 5.13°,~0 1.33% 1,047,868 ___
`1,000,000 1,058,130 _
10,263
02/11/09 02/11/11 FHLMC callable step up 1.38% 1.76% 1,000,000 ],000,000 1,001,910 ],910
__.__
8,065,107 8,000,000 8,142,450 77,343
7-3
City of Cupertino
Investment Portfolio
Nray 31, Zoov
---------~~s~c o Mafia; -vim-- _ rR~rT
US TREASURY SECURiT1ES _
w T _
02/25/09
08/27/08_
02!17/09 06/11/09
~__ T06/30/09
07/09/09 US Treasury Bi11
US Treasury Note
US Treasury Bill 0.24%
4.88%
0.32% 0.24%
2.09%
0.32% _ 999,927
2,004,520
1,999,307 1,000,000
2,000,000
2,000,000
000
2
000 999,970
2,007,500
1,999,800 _
600
014
2 ~ 43
~ v 2,980
+- ^_493
398
6
08/28/08 07/31!09 US TreasuryNo_te 4.63% 2.13% 2,008,202 ,
,
00 ,
,
018
600
2 ,
_ _
2
260
11!26/08 08/31/09 US Treasury Note 4.00% 0.73% 2,016,340 2,000,0 ,
, ,
_
12/18/08 09/15/09 US Treasury Note 3.38% 0.29% 1,009,Q07 1,000,000
00(1 1,009,020
380
012
1 ~ 13
1
363
1126/OS 09/30/09 US Treasury Note 4.0(1% 0.69% 1,011,017 1,000,
00 ,
,
480
1
011 _,
__^
(41)
12/18/08
12/15/08
12/18/08
~12/l9/08
01!12/09
01/12/09 ]0/15!09
10!31/09
11/30/09
12/15/09
_ 12/15/04
~ O1/15/l0 US Treasury Note
US Treasury Note
US Treasury Note ~~
US Treasury Note
US Treasury Note
US Treasury Note 3.38%
3.63%
3.13%
3.50%
3.50%
3.63% 0.30%
0.40%
0.32%
0.24%
0.36%
0.30% 1,011,521
1,013,447
2,028,017
1,017,654
1,016,983
2,041,615 1,000,0
1,000,000
_2,000,000
__-_ 1,000,_000
1,000,000
2,000,000
000
000 ,
,
1,013,670
2,027,660
__ 1,016,950
1,016,950
2,040,400
780
2
085 223
(357)
(704)
M-_ {33}
v~{1,215)
(154)
01/12/09 0211 S/10 US Treasury Note 6.50% 0.44% 2,085,934 2,
, ,
, _
01/12/09
03/30/09
~__ __04/30/09
05/14/09
05/21/09 03/31/10
04/15/10
06130/]0
07/31/10
08/31/10 US Treasury Note
US Treasury Note ~
US Treasury Note
US Treasury Note
US Treasury Note 1,75%
4.00%
____ 2.88%
2.75%
2.38% 0.36%
_ 0.60%
0.50%
0.50%
0.50% 2,023,160
_3_,088,698
__ 2,564,109
3,078,433
3,070,045 2,000,000
_ 3,000,000
- __2,500,000
3,000,000
3,000,000 2,021,880
3,093,270
2,563,375
J 3,077,100
3,067,260
580
2
037 (1,280)
4,572
(734)
_ _ {1,333)
J (2,785)
~
1
094
05/29/09 09/30/10 US Treasury Note 2.00% 0.62% 2,036,486 2,000,000 ,
, ,
~
_ - ~.. ,.. .. :c rnn nnn a-r 7 ac 9'fc v~10_ROi
Total Mana ed Portfolios .__. _ 58 202 980 57 13 452 SH 295 514 92 534
Average Yield ~~__~__
Average Lengti~ to Maturity (in years) 0.77°/.
0.54
--
T~-^~_
-'-
__._.__.,~_, ___.____..--
_ _
--~..T TRUST PORTFOLIO (ICESTER TRUST) -__- ----.-----
CASH
05/31/09 __ __
Wells ]nstitutional Money Mkt Acct
0.25%
0.25%
48,283 -
48,283 ----
~ 48,283
- _ ~ _0
Total Trust Portfolio _ 48 283 48,283 48,283 0
~ ~
BOND RESERVE PORTFOLIO --
~ ~
Bond Reserve Acct Ambac Assurance Security Bond
Total Bond Reserve Portfolio 1
0 i
0 l
0 0
7-4
Rate of Return Comparison
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
7-5
6~0~' ,~~oo ~o0 900 ^o~o~ ~~~o~ ~~o~ ,~~o°' ~o°' ,~~o°~ ~~o~ boo
COMPLIANCE WITH INV ESTMENT POLICY
City of Cupertino
_
_.
-- --
2409
May 31 r
,
_ .. ------ _.. __._ __
Category Standard omment
.----
.
Treasury Issues No limit __ _ _ Comp ies
US Agencies No limit _- .Comp yes
_ ---
Medium Term Corporate Bonds
30% with A rating
Comp tes
_._ _ . __._ . --- --
LAIF 4
$ 0 million
Complies -
Money Market Funds 20%_ __. _ ... _ ..... _ .._ _. --------_ _- - __-- Complies _ _ _ _.
Maximum Maturities
Per Issuer Max U to 5 ears
.._I? _.- ...- Y--------- - --- -- - ------ __._..._ --
10% (except for Treasuries and US Agencies) Complies _- - _
...----
Complies
---._ -._.__._._._.-._..._. _.._
Bankers Acceptances y °
180 da s & 40%
Comp ies
Commercial Paper 270 days & 25% Comp yes _
Negotiable Certificates of Deposit
-------
Repurchase Agreements 30% ______
365 days _ -_ _ _ ___ ________ Complies _-
Complies
Reverse Repurchase agreements Prohibited Complies
~-s
.~
°'
~ y ~
a~ y ~
~
E"' ~
~
o
v a~
[~ w
~ ti
~ °
>
' ~
~ o
'>
a a~
~ .~
>
~ ~ q ~ Q ~ V b ~
C
~
O
~
~
,~'
•~
o
N
H
~ V
~ ~
~
o ~ z ~ o O ~ ~ ~ ~ ~
'~
~ o ~
~ v ~E
~ O ~ ~ ~ N y~ ~ ~ .
c~d
.b ~ .N ~U, ~ •~ ~ ~ i~ ~ o U o
\
~ o o c 3 b s. ~, ~
Q C7 A t~ ,a w"' W ~ ~ U U ~ cC U
N 00
'V' O~
M 00
O [~
O h
~O M
~ N
M Q~
.-.~ ~D
n ~O
n M
Op
D\ M
.-~ 1~
00 ~D
l~ .r
O d'
k? V1
~D ~ O O O
01 O~ Vl ~ M M M ~ V'1 O~ W .-~ N ~p OO 'fit ~O M ~ O ~ N
C b
~ Ci
Q\ h
O e
D\ n
00 O_ M
~ ~
Vl 00
M Vi
M GO
C~ a\
~ M
l~ N
O N O O ~ N ~ .~~ ~
~
H E N O Y^ N O~ ~Y O M •--~ V~ .~ v1 M M N ~ M M ~ ~
M ~ ~ N N N N ~ •-+ l~ ~--~ M M N D\ b
.-. V1
e~
--- O
r.+
--
V M
~n ~
M O
~ 00
O [~
N O
N O
•~-~ M
~ 00
oo d•
b ~O
N ~-.
h Vl
~ [~
~ p~
~ tOt~~ M 01
M d•
n t~ ~o
~ O
~
~
` O M n
p r ~ N O ~ 0\ Oi (y o0 ['~ M d' O •--~ M O~ M N 00 O O d•
„y O
vl ~O
O [~
M O
~D N
N t~
N O
C M
[ ~ O~
v) N
N ~
h ~D
N
N
N
O
~
O
N
~•
~
M
l~
O
~O
O~
M
N
M
M N O N N N ~ N ••-~ ~ l~ ~ M M M o0 ~ \p"
O
0 O
0 O
0 O
0 O
0 O
0 O
0 O
0 N
O\ O
0 0
0 0
0 ~
O~ .--~
l~ lp
O~ ~D
O ~D
\D ct
N N
~O 0
O 0
O
~ O O O g 0 0 0 0 00 O O O M b h 0 ~ l~ O O O
p O O O p 0 0 0 1~ M CO 0 0 M O N •cf l~ t~ N O O
~
p 01
M DO
O ~O
~ O
M M
~ Q
V ^ op
O~ ~O
N O\
d' ~O
~ N
00 O
.--~ OO
'~T o0
~
u1 try
N O~
M O
N ~!1
~O N
M .~
.-.
~ M
.--r •--~ N M N ~ N --~ .~-. cp ,...~ ~ ~ ~ ~
~
~+
6i
~ 0 0 0 0 0 0 0 0 ~ ~ 0 0 D1 N d' ~' r ~' ~' ~ v1
O o 0 0 0 0 p O ~ ~ p N O d~ oG ~D O •ct o0 ~
O O d~ 0 0 0 0 0 0
~
p
a\
O
~
~p
~D
d'
N
00
~1
O
d~
M
O
O
•--~ ,~
~p
,~_,
pOp
,..,, ~
~ ~
O~ ~
N ,~
v1
O~
~
O
0
M
O
N
~
O
N
M
N
~
M
N '~
~ "" ~ .--~ 7 M M ^~ .r 00
.-r ~
a
~ ~ - -
. ~
o
~
~
~
'
~
~
~
~
p ~' ~ ~' O cn ~ Q ~ m
~
U W N F ..., O ~ w a~ b ~ ~ ~ o > ~ j ~ ~ [ j ~ ~ , ~', '~ °' o , ?.~.
~
'~ ~ ~ ~ v a ~ j w O ~ ~ +°~ ~ ~' ~ I ~ °' ~ ~ i o ~ H ~ ~ z
U U' ~ E -+ i E • a ~ .
S .
U w 0 O Q a a Q a: U a A H
F
7-7
Sales Tax Projections vs. Actua!
$16,000
N
$14,000
o $12,000
V- L
~ $10,000
0
$8,000:
$s,ooo
$4,000
$2,000
$o
-~-- Projected, per current budget
---~- Actua{
'= r r
10/08 11!08 12/08 .1109 2109 3109 4109 5109
Month
$12,000
$11,000
y $10,000
o $9,aoo
y ~ $8,000
o $7,000
$s,ooo
$5,000
y $4,000
$3,000
$2,000
$1,000
$0
Property Tax Projections vs. Actual
-
•- Projected, per current budget
~-Actual r y
10/08 11!08 12108 1/09 2/09 3/09 4109 5/09
Month
7-8
Transient Occupancy T~~x Projected vs. Actual
,~ 2, 800
a
0 2,400
,,, r 2,000
o ~ 1,600
F°- 1,200
e`a
} 800
400
0
~~
-~- Projected, per current budget
-f-Actual
10/08 11/08 12/08 1/09 2/09 3/09 4/09 5/09
Month
Licenses 8~ Permits Projected vs. Actuai
~, 3,000
c
a
2,000
0
0
1,OOo
0
--r~~~~
r ~r
--~-- Projected, per current budget
-~--Actuai
10/08 11108 12/0$ 1/09 2/09 3/09 4/09 5109
Month
7-9
Charges for Services Projected vs. Actual
N 1,500
w ~ 1,000
n"
0
m 500
0
~~
-~-- Projected, per current budget
-w--Actual
10/08 11/08 12108
1109 2/09 3/09 4/09 5109
Month
Use of Money 8~ Property Projected vs. Actual
1,500
a
c
N
$ F 1,000
!0
D
O
F~
d .500
0
-•- Projected, per current budget
-r- Actual
10/08 11/08 12108 1/09 2/09 3/09 4109 5/09
Month
7-10
General Fund Expenditures Projected vs. Actual
h 35,000
30,000
3
~ z5,ooo
20,000
H
15,000:
} 10,000
5,000
0
~~
_ ~r ~"
r+ ~~
r
l
-~--- Projected, per current budget
-i--Actual
10/08 11/08 12108 1/09 2/09 3109 4/09 5/09
Month
7-11