06. Treasurer's reportADMINISTRATIVE SEf2VICES DEPARTMENT
CUPERTIND
CITY HALL
10300 TORRE AVENUI= • CUPERTINO, CA 95014-3255
(408) 777-3220 •'FAX 0108) 777-3109
SUMM~~RY
Agenda Item No.
SUBJECT AND LSSUE
Accept the Treasurer's Investment Report for July 2009.
BACKGROUND
Meeting Date: September 1, 2009
The market value and book value of the City"s portfolio totaled $53.6 million July 31,
2009. The ?portfolio's July yield of O.bl% wa:; down from 0.74% in the previous month
and 2.65% a year ago due to the decision to take the portfolio to a safe and liquid mix of
investments given the risk and volatilifiy of the current market. The LAIF benchmark was at
1.04% for July, down from 1.38% the previous month and 2.79% 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 decreased $1.9 million from the previous month due to large capital
project and Sheriff payments. $4 million in matured Treasuries and a $1 million called
Agency note were used to pay operating expenses and purchase $4 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 obligations over the next six
months.
RECOMMENDATION
Accept the Treasurer's Investment Report for July 2009.
Submitted by:
Approved for submission:
Carol A. Atwood ~ ~ David W. Knapp
City Treasurer Cifi~ Manager
Attachment.A: Investment Portfolio
6-1
Attachment A
City of Cupertino
Investment Portfolio
July 31, 2009
o Maturi -~ A~CI~`"~ ~~IT
SECURITIES MATURED _
02/17/09 07/09/09 US Treasury Bill 0.32% __0.32% 2,000,000 2,000,000 2,000,000 0
08/28/08 07/31/09 US Treasury Note 4.63% 2.13% 2,000,000 2,000,000 2,000,000 0
J SECURITIES CALLED
07/28/08 07/28/10 FFCB callable 3.30% 3.30% 1,000,000 1,000,000 1,000,000 0
SECURITIES PURCHASED ___ _ _ _
07/28/09 10/22/09 US Treasury Bill 0.16% 0.16% 999,632 1,000,000 999,610 (22}
07/28/09 } 127/09 US Treasury Bill 0.17% 0.17% 999,439 1,000,000 999,360 (79)
07/31/09 12/17/09 US Treasury Bill 0.19% _0;19% 999,266 1,000,000 999,170 (96)
07/31/09 T Ol/31/10 US Treasury Note 2.13% 0.22% 1,009,531 1,000,000 1,008,910 ~ (621)
~~ J
CTI'Y PORTFOLIO
CASH
_
07/31/09
Wells Fargo- Workers Comp Checking
16,105
16,105
16,105
0
07/31/09 Wells Fargo -Regular Checking 592,848 592,848
u _ 592,848 ____~, 0
_ 608,953 b08,953 608,953 0
LAIF
07/31/09 LAIF -State Pool 1.04% 1,04% 590,169 590,169 590,169 0
~~ ~ y~
CERTIFICATES OF DEPOSIT
12/30!05 12/30/09 Meridian Bank NA, Wickenburg AZ 4.80% 4.80% 99,000 99,000 100,771 1,771
12/28/OS 12/28/10 Natl Bnk of New York City, Flushing 4.90% 4.90% 97,000 97,000 - 101,865 4,865
196,000 19b,000 202,636 6,636
MONEY MARKET FUNDS
07/31/09 Wells Fargo Government 0.07% 0.07% 100,000 100,000 100,000 _ 0
07/31!09 Wells Fargo (00%Treasury 0.01% 0.01% 9,999,747 9,999,747 9,999,74? 0
_ 10,099,747 10,099,747 10,099,747 u 0
AGENCY NOTCS __._.~_
01/22/08 08/03/09 FFCB 5.25% 2.55% 1,000,216 1,000,000 1,000,000 _ ~ (216)
09/23/08 09/23/09 FFCB 2.70% 2.57% 1,000,185 1,000,000. 1,003,440 3,255
06/25/08 05/07/10 FFCB 4.75% _ 3.38% 1,010,090 1,000,000 1,032,190 22,100
_
05/07/08 06/11/10 FHLB 3.00% 2.98% 1,000,]73 1,000,000 1,020,940 20,767
01/30/09 _
09/10/10 FHLB 5.13% 1.33% 1,041,615 1,000,000 1,051,250 9,635
02/11/09 02/11/11 FHLMC callable step up 1.38% 1.38% 1,000,000 1,000,000 1,000,250 250
~
6,052,278 6,000,000 b,108,070 SS,792
6-2
City of Cupertino
Investment Portfolio
July 31, 2009
o Maturi -~ /
US TREASURY SECURITIES
_ 11/26/08 08/31/09 US Treasury Note 4.00% 0.73% 2,005,506 2,000,000 2,005,620 114
12/18/08 09/15/09 US Treasury Note 3.38% 0.29% 1,003,872 1,000,000 1,003,630 (242)
11/26/08 09/30/09 US Treasury Note 4.00% 0.69% 1,005,508 1,000,000 1,005,900 392
12/18!08 10/15/09 US Treasury Note 3.38%
~ 0.30% 1,006,391 1,000,000 1,006,170 (221)
07/28/09 10/22/09 US Treasury Bill 0.16% 0.16% 999,632 1,000,000 999,610 (22}
I2/15/O8 10/31/09 US Treasury Note 3.63% 0.40% 1,Q08,08b 1,000,000 _ __
1,008,160 74
07/28/(}9 11/27/09 US Treasury Bill 0.17% 0.17% 999,439 1,000,000 _ _
~
999,350 (79)
12/18/08 i 1/30/09 US Treasury Note 3. i 3% 0.32% 2,018,678 2,000,0
00 _
2,018,520 (158)
12/19/08 12/15/09 US Treasury Note 3.54% 0.24% 1,012,215 _
1,000,000 i,01 1,800 (415)
01/12/09 12/15/09 US Treasury Note 3.50% 0.36% 1,011,751 1,000,000 1,011,800 49
07/31/09 12/17/09 US Treasury Bill O.i4% 0.19% 999,266 1,000,000 _
~ 999,170 __
(96)
01/12/09 01715/10 USTreasnryNote 3.63% 0.30% 2,030,530 2,000,000 2,029,920 (610)
07/31/09 01/31/10 US Treasury Note 2.13% 0.22% 1,009,531 1,000,000 1,008,910 (621)
01/12/09 02/15/10 US'freasuryNote _ 6.50% 0.44% 2,065,772 2,000,000 2,065,620 {152)
01/12/09 03/31/10 US Treasury Note 1.75% 0.36% 2,018,513 2,000,000 2,018,680 i67
03/30/09 04/15/10 US Treasury Note 4.00% 0.60% 3,071,737 3,000,000 3,076,050 4,313
06/24/09 OS/3]110 US Treasury Note 2.63% 0.40% 1,018,455 _
1,000,000 1,018,050 (405}
06/29/09 05/31/10 US Treasury Note 2.6.3% 0.38% 1,018,623 1,000,000 ~
1,018,050 (573)
04/30/09 06/30/i0 US Treasury Note 2.88% 0.50% 2,554,209 _
2,500,000 _
__ _
2,554,700 491
05/14/09 07/3t/]0 US TreasuryNotc 2.75% 0.50% 3,067,202 3,000,000 ~ 3,066,450 __
~^ (752)
05/21/09 08/31/10 US Treasury Note 2.3 B
% 0.50% 3,060,696 3,000,000 3,058,950 (1,746)
05/29/09 09/30/10 US Treasury Note _ _
2.00% _
0.62% 2,031,916 2,000,000 2,032,660 _
~ T 744
,^ 36,017,528 35,500,000 36,017,780 252
Total Mana ed Portfolio
.___ 53 564 675 52 494 869 53 G27 SS G2 G80
Average Yield O.GI%
Average Length to Maturity ( in years) 0.50
TRUST PORTFOLIO (KESTER TRUST)
CASH v
07/31/09 Wells Institutional Money Mkt Acct 0.16% 0.16% 48,303 48,303 ~ 48,303 0
Total Trust Portfolio 48 303 48,303 48,303 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct Ambac Assurance Security Bond 1 1 1 _____
Total Bond Reserve Portfolio 0 0 0 0
6-3
Rate of Return Comparison
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
s-a
~ ~ ~
COMPX..IANCE WITH INVESTMENT POLICY
City of Cupertino
July 31, 2009
- -
- - _.__.
- --.
Categor~_____ _
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 S year:; Complies
Per Issuer Max 10% (except for Treasuries and US Agencies) Complies
Bankers Acceptances 180 days & 4~0% Complies
Commercial Paper 270 days & 2.5% Complies
Negotiable Certificates of Deposit 30%
_ ._ Complies
Repurchase Agreements 365 days ___ _ Complies
6-5