05. Treasurer's reportADMINISTRATIVE S1=RVICES DEPARTMENT
CUPERTINO
CITY HALL
'10300 TORRE AVENIJE • CUPERTINO, CA 95014-3255
(408) 777-3220 • FAX {408) 777-3109
SUMMARY
Agenda Item No.
SUBJECT AND ISSUE
Meeting Date: December 15, 2009
Accept the Treasurer's Investment and Budget Report for October 2009, including a report
on General Fund Revenues and Expenditures.
BACKGROUND
Investments
The mazket value of the City's portfolio totaled $50.4 million, with a book value of $50.3
million at October 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
October yield of 0.49% did not change from the previous month and decreased from 1.79%
a year ago due to the decision to take the portfolio to a safe and liquid mix of investments
given the risk and volatility of the current market. The LAIF benchmark was at 0.65% for
October, down from 0.75% the previous month and 2.71% a year ago, reflective of their
move to a higher percentage of investments backed by the full faith and credit of the
federal government.
T'he City's portfolio increased $0.5 million fr~~m the previous month due to sales tax and
reimbursement for a large capital project. $2 million in matured Treasuries were used to
purchase a $4 million new short-term Treasury note. Investments are in full compliance
with City investment policy and State law and are tiered to provide sufficient cash flaws to
pay City obligations over the next six months.
General Fund Revenues and Expenditures
As anticipated, the recession has affected sales tax, hotel tax (TOT}, building and planning
revenues, and senior trip revenues. The national credit market and financial turmoil
continues to provide extremely low interest rates on safe investments backed by the federal
government, which has resulted in lower interest income for the City. We will continue to
monitor this situation with the intention of keeping our investments safe and liquid. All
other revenues appear to be on track.
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Treasurer's Investment and Budget Report
December 15, 2009
Page 2 of 2
Expenditures are up 1 % over last year, but were budgeted at the same level as the prior
year. This is due to the timing of expenditures and the additional costs of elections and
operations for the Blackberry Farm picnic area.
Staff will be bringing amid-year budget adjustment to the City Council in mid-January
which will explain fluctuations in both the revenue and expenditure accounts in detail.
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for October 2009, including a report
on General Fund Revenues and Expenditures.
Submitted by:
G ~~ ~ ~ ~ ~~
arol A. Atwood
City Treasurer
Attachment A: Investment Portfolio
Attachment B: General Fund Budget Report
Approved for submission:
David W. Knapp
City Manager
5-2
City of Cupertino
Investment Portfolio
October 31, 2009
Attachment A
~ o Manui S
SECURITIES MATURED
12/18/08 10/15/09 US Treasury Note 3.38% 0.30% 1,000,000 2,000,000 1,000,000 0
07/28/09 10/22/09 US Treasury Bill 0.16% 0.16% 1,000,000 1,000,000 1,000,000 0
SECURITIES PURCHASED __
10/29/09 04/29/10 US Treasury Bill 0.15% 0.15% 3,997,100 4,000,000 3,996,840 {260}
CITY PORTFOLIO
CASH
10/31/09 Wells Fargo -Workers Comp Checking 17,443 17,443 17,443 0
10/31/09 Wells Fargo -Regular Checking 121,414 121,414 121,414 0
10/31/09 Wells Fargo -Repurchase Agreements 0.10% 0.10% 517,689 517,689 _
S 17,689 0
G56,S46 655,546 656,546 0
LAIF
10/31 /09 LAiF -State Pool 0.65% 0.65% 591,503 591,503 591,503 0
CERTIFICATES OF DEPOSIT
12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ •3.80% 4.80% 99,000 ~ 99,000 99,718 ~. 7] 8
12/28/08 12/28/10 Natl Bnk of New York City, Flushing N 9.90% 4.90% 97,000 97,000 101,583 4,583
_ 196,000 196,000 201,301 5,301
MONEY MARKET FUNDS
10/31/09 Wells Fargo Government 0.01% 0.01% 157,500 157,500 157,500 0
10/31/09 Welts Fargo 100%Treasury x).01% 0.01% 4,842,944 4,842,944 4,842,944 _
0
_ 5,000,444 5,000,444 5,000,444 0
AGENCY NOTES _ _
'
06/25/08 05/07/10 FFCB 9.75% 3.38% 1,006,775 1,000,000 L,022,810 16,035
05/07/08 O6/I1/10 FHLB :1.00% 2.98% 1,000,122 1,000,000 1,016,250 16,128
01/30/09 09!10/10 FHLB :i.13% 1.33% 1,032,185 1,000,000 1,042,190 10,005
3,039,082 3,000,000 3,081,250 42,168
5-3
City of Cupertino
Investment Portfolio
October 31, 2009
L
o Mamri ~R-U~'1T1L6
US TREASURY SECURITIES
12/15/08 10/31/09 US Treasury Note 3.63% 0.40% 1,000,000 1,000,000 1,000,000 0
07/28/09 11/27/09 US Treasury Bifl _ 0.17% 0.17% 999,873 1,000,000 999,990 117
12/18/08 11/30/09 US Treasury Note 3,13% 0.32% 2,004,593 2,000,000 2,004,540 _~ (S3)
08/28/09 12/03/09 US Treasury Bill 0.10_% __0.10% 999,908 1,000,000 999,990 __ 82
~
O8/25/Q9 12//0/09 US Treasury Bill 0.13% 0.13% 999,850 1,000,000 999,960 _
110
12/19/08 12/15/09 US Treasury Note 3.50% 0.24% 1,004,012 1,000,000 1,003,950 _
^T(62)
01/12/09 12/1 S/09 US Treasury Note _ _
3.50% _
0.36% 1,003,860 1,000,000 1,003,950 90
07/31/09
12/17/09
US Treasury Bill
0.19%
0.19%
999,752
1,000,000
999,950 _
198
01!12/09
Oi/15110
US Treasury Note
3.63%
0.30%
2,013,81I
2,000,000
2,014,060
_ _
_
249
07/31/09 01/31/]0 US Treasury Note 2.13% 0.22% 1,004,766 1,000,000 _
1,004,920 __
~~~ 154
08/28/09 02/04/10 US Treasury Bill 0.17% 0.17% 999,547 1,000,000 999,840 293
01/12/09 _ 02/15/10 US Treasury Note 6.50% 0.44% 2,035,365 2,000,000 2,036,260 895
08/25/09 02/28/10 US Treasury Note 2.00% 0.18% 1,006,027 1,000,000 1,006,050 23
09/25/09 03/15/10 US Treasury Note 4.00% 0.11% 3,043,483 3,000,000 3,042,3
00 (1,183)
01/12/09 _ 03/31/10 US Treasury Note 1.75% 0.36% 2,011,504 2,000,000 _
2,012,960 _
1,456
03/30/09 04/15/10 US Treasury Note 4.00% 0.60% 3,046,156 3,000,000 3,051,690 5,534
10/29/09 04/29/10 US Treasury Bill 0.15% 0.15% 3,997,100 4,000,000 3,996,840 (260)
06/24/09 05/31/i0
_ US Treasury Note 2.63% 0.40% 1,012,870 1,000,000 1,013,870 1,000
06/29/09 05/31/10 USTreasutyNote 2.63% 0.38% 1,012,987 1,000,000 1,013,870 ~_ 883
04/30/09 06/30/10 US Treasury Note 2.88% 0.50% 2,539,277 2,500,000 2,543,250 3,973
05/14/09 07/3 i/10 US Treasury Note 2.75% 0.50% 3,050,263 3,000,000 3,054,840 4,5'"
05/21/09 08/31/(0 US Treasury Note 2.38% 0.50% 3,046,595 3,000,000 3,050,280 3,6.
05/29/09 09/30/10 US Treasury Note 2.00% 0.62% 2,025,023 2,000,000 2,029,540 4,517
40,856,622 40,SOO,Q00 40,882,900 26,278
Total Managed Portfolio 50 40 197 49 944 493 SO 413 944 73 747
Average Yicid 0.49% __
Average Length to Maturity (in years) 0.39
_ TRUST PORT)OLIO ([CESTER TRUST)
CASH
10/31/09 _
Wells Institutional Money Mkt Acct
0,10% __
0.10%
48,322
48,322
48,322
0
Totai Trust Portfolio 48,322 48,322 48,322 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct Ambac Assurance Security Bond 1 1 1
Total Bond Reserve Portfolio 0 0 0 0
5-4
US
017°
ncy Notes
6%
Rate of Return Comparison
3.00%
2.50%
2.00%
1,50%
1.00%
0.50%
0.00%
Investmeni:s by Type
Managed Portfolio
~~FCash ,
1%~ 1% Money Market CD s
~~
5-5
~~~o$ ~~o~ ~~o~ doe ~~oe ~~~9 ~~ 6~oa ~~o~ ~~o~ 9~0~ ~o~o~
Category___ _ ~ Standard I Comment
Treasu Issues No limit Com lies
ry.... ._ . _ ---- - _ _....__ ._... _.
_._
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 ____ iComplies
Per Issuer Max ~ 10% (except for Treasuries and US Agencies} IComplies
'.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
5-6
City of Cupertino
General Fund Budget Report
October 31, 2009
Bud et ~ Ac tual
Amended
2008/09 2009/10 10/31/2008 , .10/31/2009 Anal sis of Trends
Taxes:
Sales Tax 13,390,000 11,649,000 3,981,699 3,101,082 Trending down as ex ected (Ap le -4%)
Pro a Tax 11,080,000 11,190,000 530,934 529,318 ~ On track
Transient Occupancy 2,660,000 2,394,000 ~ 896,823 715,580 Down 24% thru 1Q FY2010
Utili Tax ~ 3,300,000 3,366,000 758,843 755,008 On track
Franchise Fees 2,630,000 2,630,000 370,777: 365,180 On track
Other Taxes 1,500,000 1,500,000 311,438 334,391 'Property Transfer tax u
Licenses and Permits 2,980,000 3,210,000 1,247,359 1,215,105 On track
Use ofMone & Pro a 1,267,000 1,391,000 359,552 240,604 Investment earnin s reflective of market
Other Inter overnmental 283,892 245,000 83,993 116,316 ~ On track
VLF Non Swa 210,000 170,000 f 49,943 37,363 j On track
Intergovernmental 493,892 415,000 ~ 133,936 153,679' 0n track
\.ucu gGJ 1V1 JGl VLI.GJ 1,YUO,VVV 1,OJ'+,VVV ~lJ,J°{'1 JJL, ltS tl~ iG6r11I1 ,planning anarCl revenue down
Fines & Forfeitures 820,000 902,000 142,463 193,452'. lParkin fines up
Other Revenue 100,000 100,000 52,497 -92,997 f
;Needs credit card fee reallocation -processed 12/09
Total Revenue 4 ' 1 0
O erating E enditures:
Administrative 1,483,395 1,553,423 411,731 424,718 On track
Law Enforcement 8,480,671 8,536,63b 2,726,676 2,819,085 ~ On track
Public & Environ. Affairs 1,512,796 1,504,522 485,275 437,856 ~ On track
Administrative Service 4,254,006 4,277,165 1,260,709 1,396,332 ~ Reflects election costs
Recreation Service 4,397,466 4,386,560 1,225,762 1,375,57b ~ Refects BBF icnic o erations
Community Develo went 4,207,724 3,816,219 1,013,731 941,640 ~ Plan Check down. Consistent with revenues
Public Works 11,652,062 11,911,291 3,665,119 3,552,379 ~ On track
Total E enditures ,
Transfers In 623,925 0 23,320 0 On track
Transfers Out ( -7,110,0001 -7,573,000 -2,366,640 -2,524,332 On track
Net Gain/ Loss ~ - - - 0 4 -
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