05. Treasurer's reportADMINISTRATIVE SERVICES bEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 950143255
(408) 777-3220 • FAX (408) 777-3109
SUMMARY
Agenda Item No. ~ Meeting Date: February 16, 2010
SUBJECT AND ISSUE
Accept the Treasurer's Investment and Budget Report for December 2009.
BACKGROUND
Investments
The market value of the City's portfolio totaled $49.5 million, with a book value of $49.4
million at December 31, 2009. The portfolio's December yield of 0.46% was down from
0.47% in the previous month and 1.19% 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 0.57% for December, down from 0.61 % the previous month
and 2.35% a year ago, is 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 $0.2 million fr~~m the previous month due to payments on
the Sheriff contract and other obligations. L-ecember maturities included $5 million in
Treasuries and a $99K Agency note. The City purchased $8 million in Treasuries with
these monies and additional cash flows from property taxes and other revenue sources.
Investments are in full compliance with the 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 and Budget Report for December 2009.
Submitted by: Approved for submission:
- ~'r,~
C of A. Atwood David W. Knapp
City Treasurer City Manager
Attachment A: Investment Portfolio
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Attachment A
City of Cupertino
Investment Portfolio
December 3l, 2009
L
1~ - o Maturit ~-- CAS
- _--- --- -------^• -
_.-._ _ _._._...__.____ --_- SECURITIES MATURED
4828/09 12/03/09 US Treasury Bil] 0.10% 0.14% _ 1,000,000 1,000,400 1,(}00,000 0
08/25/09 12/10!09 US Treasury Bill - 0.13% 0.13% 1,000,000 1,000,000 1,000,000 0
12/19/08 12/15/09 US Treasury Note ~ 3.50% 0,24% ____ 1,000,(100 1,000,000 1,000,040 0
01/12/09 12/15/09 ___
US Treasury Note 3.54% 0.36% 1,000,000
-
- 1,000,000 1,000,000 0
07/31/09 12/17/09 _
US Treasury Bill ~ _ 0.19% _ 0.19% 1,000,000
_ 1,040,000 1,400,000 0
12/30/05 12/30/09 Meridian Bank NA, Wickenburg AZ ~-4.80% 4.80% 99,000 99,000 99,000 0
SECURITIES PURCHASED
_
~~12/07/09 45/20/10 US Treasury Bill 0.15% 4.15% 3,997,667 4,000,000 3,997,800 _ _ 133
12/21/09 06/17/10 US Treasury Bill 0.13% 0.13% 3,997,573 4,000,000 3,996,600 _ -- {973}
,_. _.__
CITY PORTFOLIO - - - -
CASH -`-- -- - _
~
12/31/09 Wells Fargo -Workers Comp Checking 20,584_ _! 20,584 20,584 - _0
12/31/09 _
Wells Fargo -Regular Checking _ ___ 99 99 99 0
12/31/49 _
Wells Fargo -Repurchase Agreements - __
- 0.10% _
0.10% 1,190,674 1_190,674 1,190,674 _ -- _ _ 0
~
1,211,357
--- 1,211,357 1,211,357 0
LA1F _---
_ _ __ __ _
~
__
.--12/31/09 __
I.AiF -State Pool _ __
- 4.57% 0.57% 591,503 591,503 591,503 0
____
CERTIFICATES OF DEPOSTT -
i
12/28/05 12/28/10 Natl Bnk of New York City, Flushing N 4.90% 4.90% 97,000 _ 97,0(10 100,803 3,8~
^ ~~ ~ 97,000 _ 97,000 100,803 3,803
MONEY MARKET FUNDS _
12/31/09 We1lsFargo100%Treasury 0.01% 4.01% 4,795,651 4,795,651 4,795,651 0
4,795,G51 ___4,795,651 4,795,651 0
AGENCY NOTES _
06/2
5/08 05/07/10 FFCB 4.75% 3.38% 1,004,576 1,000,000 1,015,630 11,054_
_
05/07/08 06/11/10 FHLB _ 3.00% 2.98% 1,000,089 1,000,000 1,012,190 12,101
01/30/09 09/10/10 FHLB 5.13% 1.33% 1,025,933 1,000,000 1,032,810 b,878
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City of Cupertino
Investment Portfolio
December 31, 2009
o ~~
US TREASURY SECURITIES
Ot/12/09 O1/IS/10 USTreasuryNote :1.b3% 0.30% 2,002,726 2,000,000 2,001,880 (846)
07/3
1/09 01/31/10 _
US Treasury Note :?.13% 0.22% 1,001,606 I,000,000 1,001,450 (156)
_
08/28/Q9 _
02/04/10 Treasury Bili
US 0.17% 0.17% 999,835_ 1,000,000 999,970 _ 135
__ 01/12/09 _
02/15/10 _
Treasury Note
__
U
S 6.50% 0.44% 2,015,204 ___ 2,000,000 2,014,540 ____ _ (b64)
_
08/25/09 ___
_
02/28/10 _
_
_
US Treasury Note :?.00% 0.18% 1,002,963 1,000,000 1,002,850 (113)
_
09/25/09 _
03/15/10 US Treasury tdote ~t.00% 0.11% 3,023,835 3,000,000 3,022,620 (1,215)
_
_
01!12/09 _
03/31/10 US Treasury Note 1.75% 0.36% 2,006,857 2,000,000 2,007,740 883
03/30/09 04/15/10 USTreasuryNote ~I,00% 0.60% 3,029,195 3,000,000 3,032,340 3,145
10/29/09 04/29/10 US Treasury Bill 1}.15% 0.15% 3,948,083 4,000,000 3,998,880 797
12/07/09 05/20/10 US Treasury Bill 0.15% 0.15% 3,997,b67 4,000,000 3,997,800 133
06/24/09 05/31/10 _
US Treasury Note '.63% 0.40% 1,009,167 1,000,000 1,009,880 713
06/29/09 05/31/10 USTreasuryNote !.63% 0.38% 1,009,250 1,000,000 1,009,880 630
12/21/09 06/17/10 US Treasury Bill _
0.13% 0.13% 3,997,573 4,000,000 3,996,b00 (473}
04/30/09 06/30/10 US Treasury Note :'.88% 0.50% 2,529,377 2,500,000 2,532,725 3,348
05!14/09 07/31/10 US Treasury Note :?.75% 0.50% 3,039,032 3,000,000 3,042,780 3,748
05/21/09 08/31/10 US Treasury Note :?.38% 0.50% 3,037,245 _ 3,000,000 3,039,720 _ 2,4_75
05/29/09 09/30/10 US Treasury Note :?.00% 0.62% 2,020,453 2,OQO,Q00 2,023,760 3,307
39,720,QG7 39,500,000 39,735,415 15,348
Total Mana ed Portfolio 49 446 176 49195 511 49 495 359 49 i83
Average Yield _ 0.46%
Average Length to Maturity (io years) _ 0.33
~~
'F PORTFOLIO (I+:FS"I'ER TRUST)
TRUS
CASH _ ___
12/31/09 Wells Institutional Money Mk[ Acct 0.15% 0.15% 48,332 48,332 48,332 0
i
Total Trust Portfolio u 48,332 48,332 48 332 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct Ambac Assurance Security Bond __ 1 1 _I
Bond Payment Acct Wells Treasury Plus Money Mkt I).OI% 0.01% 1,036,972 1,036,972 1,036,972 0
Tota! Bond Reserve Portfolio 1 036 972 1 036 972 1036 972 0
5-3
2.50%
Rate of Return Comparison
2.00%
1.50%
t uiF
--~-CupeAino
1.00%
0.50%
0.00%
5-4
Treasury Issues !No limit Complies
US Agencies No limit ~ Complies
Medium Term Corporate Bonds i 30% with A rating _ _ _ _ ~ Complies
LAIF '$SO million Complies
Money Market Funds ; 20 /o ; Complies
Maximum Maturities ~Up to S years Complies
Per Issuer Max j 10% {except for Treasures and US Agencies) Complies
Bankers Acceptances
_. __ ' 180 days &; 40%
__.. Complies
Commercial Paper ,270 days & 2S% Complies
Negotiable Certificates of Deposit 30% Complies
Repurchase Agreements 36S days _ Complies
~ments Prohibited
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