07. Treasurer's reportADMINISTRATIVE SERVICES DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014 -3255
(408) 777 -3220 • FAX (408) 777 -3109
SUMMARY
Agenda Item No.
SUBJECT AND ISSUE
Meeting Date: March 16, 2010
Accept the Treasurer's Investment and Budget Report for January 2010.
BACKGROUND
Investments
The market value of the City's portfolio totaled $52.7 million, with a book value of $52.6
million at January 31, 2010. The portfolio's January yield of 0.44% was down from 0.46%
in the previous month and 1.14% a year ago clue to the decision to take the portfolio to a
safe and liquid mix of given the risk and volatility of the current market. The
LAIF benchmark was at 0.56% for January, down from 0.57% the previous month and
2.05% 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 $3.2 million from the previous month due to property and
sales tax receipts. A portion of this increase plus $2 million in Treasury maturities were
invested in $5 million of new Treasury securities.
Investments are in full compliance with the City investment policy and State law and are
tiered to provide sufficient cash flows to pay City obligations over the next six months.
General Fund Revenues and Expenditures
Fiscal year -to date revenues are currently down 17% from last year. By year -end, they are
forecasted to end up 9% below last year's nurlber, which the current balanced budget has
already reflected. Sales taxes, transient occupancy taxes, and investment earnings are
particularly impacted from the recession and low interest rate environment.
Operating expenditures through January are currently at 2% over last year, well within the
current budget expectations. Biannual election costs and the re- opening of Blackberry Farm
are offset by lower plan check, legal, and city communication costs.
7 -1
Treasurer's Investment and Budget Report
March 16, 2010
Page 2 of 2
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for January 2010.
Prepared by: David Woo
Deputy Treasurer
Submitted by:
Approved for submission:
Carol A. Atwood
City Treasurer
David W. Knapp
City Manager
Attachment A: Investment Portfolio
Attachment B: General Fund Budget Report and Charts
\ \Cupertinosan\groups \Finance \Treasury\Monthly Reports\staff report Jan 2010.doc 7-2
City of Cupertino
Investment Portfolio
January 31, 2010
ATTACHMENT
A
ACTIVIT
YIELD
UNREAL=
PURCHASE
BBS N.____ - - --
o iVtamn
E
ITI ;b
-
_
SECURITIES MATURED
01/12/09
01 /15 /10
US Treasury Note
3.63%
0.30%
_
2,000,000
2,000,000
2,000,000
0
SEC URITIES PUR CHASED
01/29/10
12/3
US Treasury Note
0.88%
0.25%
2_,5
2,500,000
(1,367)
01/29/10
01/31/11
US Treasu Note
)
0.28%
2,514,763
2,500,000
_
2,513,775
(98$)
-
CITY PORTF
CASH
01 /31 /10
Well F - Workers Comp Checking
12,638
12,638
12,638
0
01/31/10
W ells _F - Re gular Che
188,526
188,526
188,526
0
01/31/10
Wells Fargo = Repurchase Agreements
0.10 %
0.10%
.1,513,559
- -- _ 1,513,559
1,513,559
_
0
1,714,723
1,7_
1,714,723
0
LA1F __
-
-
01/31 /10
LAIF - State Pool — -
0.56%
0.56%
592,405
592,405
592,405
0
CERTIFICATES OF DEPOSIT
_
12/28/05 - 12/28/10
Natl Bnk of New York City, Flushing NY
4.90%
- --
4.90%
97,000
- 97,000
97,000
97,000
100,732
100,732
- - 3,732
-
3,732
MONEY MARKET FUNDS
-
01/31/30
Wells Fargo 100 %Treasur
0.01%
0.01%
4,488,280
4, 488,2 8 0
4,488,280
0
_-
--
--
- -- 4,488,280
4,488,280
4,488,280
-- .._.._._ 0
AGENCY NOTES
--
06/25/08
05/07/10
- ------------
FFCB
4.75%
- .. - --
3.38%
1,003,459
- ........ -
1,000,000
-- --
1,012,1
8,731
05/07/
06/11/10
_
FHLB
:1.00%
2.98%
1,000,072
- 1,000,000
1,010,
10,23
01/30/09
09/10/10
_
FI•=LB
:1.13%
1.33%
1,022,755
_ 1,000,000
1,030,310
7,555
3,026,286
3,000,000
3,052,810
26,524
US TREASURY SECURITIES - - - -�
_-
07/
01/31/10
US Trea N
; !.13%
0.22%
1,000,000
1,000,000
1,000,000
0
08
02/04/10
_
US Treasury Bill
0 .17 %0
0.17%
999,981
1,000,000
1,0 00,000
19
01/12/09
02/15/10
_�-
~
US Treasury -_
t i.50 %
0.44%
2,004,958
2,000,000
2, 004,760
_
(_19_8)
08/25/09
02/28/10
_Note _ _
U T No -
2.00%
0.18%
1.,001,406
1,000,000
1,001,370
(3 6)
_
09/25/09
03/15
US Treasur Note
4.00%
0.11%
3,013,850
3,000,000
3,013,590
(260)
01/12/09
06/31/10
US Treasury Note
1.75%
0.36%
2,004,495
2,000,000
2,005,240
745
03/30/09
04/ 15/10
US Treasury Note
4.00%
0.60%
3,020,576
3,000,000
3,023,430
2,854
10/29/09
_ _04/29/10
-
US Treasury Bill
_
M _0.15%
0.15
T 3,9 98,582
4,000,000
3,999,280
- 698
12107/09
_ 05/20 /10
_
US Treasury Bill
0.15%
0.1
! _ 3,9 98,183
4,000,000
_
- 3,999,040
- 857
06/2
05/31/10
US Treasury Note
^ 2.63%
0
1,007,285
1,000,000
1,008,160
875
06/
05/31/10
US Treasury Not -_- _
2 .63% .
0.38%
1,007,351
_
1,000,000
1,008,160
809
12/21/09
-
06/17/10
US Treasury Bill
0,13%
0.13%
3,998,021
4,000,000
3,998,400
379
04/30/09
06/30/10
- -- --- ......------- - - - - --
US Treasury No
1.88%
0.50%
2,524,345
_... -
2,500,000
__..._.._...
2,528,025
3,680
0
07/31/10
US T Note
:
0.50%
3,03
_
3,000,000
3,038,430
5,
05/21/09
08/31/10
US Treasury Note
1.38%
0:50%
3,032,494
3,000,000
3,037,380
4,886
05/29/09
01/29/10
09/30/10
12/31/10
US Treasury Note
US Treasury Note
2.00%
0.62%
2,018,131
2,000,000
2,023,440
5,309
0.88%
0.25%
2,514,367
2,500,000
2,513,000
(1,367)
01/29/10
01 /31/11
US Treasury No
0.88%
0.28%
2,514,763
2,500,000
2,513,775
(988)
42,692113 1
42,500,000
42,715,480
2,715,480
23,367
7 -3
City of Cupertino
Investment Portfolio
January 31, 201
ACTIVITY DA
COUPON
YIELD
ADJUSTED
MATURITY
KIA -
A
- URM
PURCHASE MA7URITY'
DESCRIPTION
-- RATE --
Fo_4a_i n�t
CMT
VALUE -
VAL
- WFITWSS
T P ortfolio
52,610,807
52,392,408
52,664,430
---- 5&67,L
Average Yield
0.44%
Average Len t to Maturity
in years)
0.33
TRUST PORTFOLIO (KESTER TRUST)
— -- -----------
. . ......... ....
CASH
01/31/10
Wells Institutional Money Mk( Acct
0.15%
0.15%
48,338
48,338
48,338
0
Total Trust Portfolio
48,338
48,338
48,338
0
----------
BOND RESERVE PORTFOLIO
Bond Reserve Acet
Ambac Assurance Security Bond
Total Bond Reserve Portfolio
0
1 0
1 —0
1
7-4
Rate of Retur Comparison
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
7 -5
� Oo0
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
January 31, 2010
Category Standard Comment
Treasury Issues
US Agencies
Medium Term Corporate Bonds
LAIF
Money Market Funds
Maximum Maturities
Per Issuer Max
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
No limit
Complies
No limit
Complies
30% with A rating
Complies
$50 million
Complies
20%
Complies
Up to 5 years
Complies
10% (except for Treasuries and US Agencies)
Complies
180 days & 40%
Complies
270 days & 25%
Complies
30%
Complies
365 days
Complies
Prohibited
Complies
7 -6
City of Cupertino
General Fund Budget Report
January 31, 2010
i
Budget
Actual
Amended
Amended
2008/09
` 2009/10
1/31/2009
1 1/31/2010
Analysis of Trends
Taxes:
i
Sales Tax
13,390,000
11,249,000
9,524,437
6,242,597
State true-up of last ear's declines
Property Tax
11,080,000
10,419,503
6,344,726
5,851,241
State borrowin
Transient Occupancy
2,660,000
1,994,000
1,345,557
1,157,808
Starting to turnaround
Utility Tax
3,300,000
3,366,000
1,495,516
1,520,355
On track
Franchise Fees
2,630,000
2,630,000
763,561
766,016
On track
Other Taxes
1,500,000
1,200,000
658,126
659,625
Transfer tax up; construction tax down
Licenses and Permits
2,980,000
3,210,000
1,598,473
1,725,598
Rose Bowl development
Use of Money & Property
1,267,000
891,000
698,274
392,517
Investment earnings reflective of market
Intergovernmental
493,892;
415,000
249,0651
317,355
1 Federal stimulus & COPS
Charges for Services
1,468,000
1,434,000
842,1201
874,334
Blackberry Farm
Fines & Forfeitures
820,000
902,000
339,100
366,074
Parking fines u
Other Revenue
100,000
100,000
42,227
46,383
Total Revenue
i LULM
Operating Expenditures:
Administrative
1,483,395
1,517,004
841,237
767,023
City Atty office vacancies
Law Enforcement
8,480,671
8,565,636
4,844,634
4,907,524
On track
Public & Environ. Affairs
1,512,796
1,504,522
809,192
762,939
On track
Administrative Service
4,254,006
3,985,345
2,034,563
2,299,447
Reflects election costs
Recreation Service
4,397,466
4,289,549
2,001,368
2,181,679
Refects BBF picnic operations
Community Development
4,207,724
3,560,7501
1,798,302!
1,715,154
Plan check savings
Public Works
11,652,062,
11,833,7001
6,078 561
6,069 469
On track
Total Ex enditures
' S
E
Transfers In
623,925
742,037
40,810
742,037
On track
Transfers Out
- 7,110,000
- 7,649,040
- 4,141,620
- 4,365,581
On track
Net Gain/(L ss)
-785
J
1 1
a - AWAM
D
Q7 =
M
Z
--i
Sales Tax Projections vs. Actual
$8,000
U)
0 $6,000
� r
a
6 $4,000
m
m
r $2,000
$0
10/09
11109
---�— Projected, per current budget
--- Actual
12/09
Month
$7,000
N
$6,000
N
7
Ole r $5,000
n $4,000
0
m $3,000
d
$2,000
$1,000
$0
Property Tax Projections vs. Actual
1/10
—�-- Projected, per current budget
—� Actual
10/09
11/09
12/09
1/10
Month
7 -8
Transient Occupancy Tax Projected vs. Actual
1,600
c
c 1,200
v►
a
800
L
i 400
7
r r�
—�-- Projected, per current budget
---�— Actual
10109 11/09 12109
Month
Licenses & Permits Projected vs. Actual
y 2,000
V
C
m
v+ p
m
1,000
m
d
r
1110
—+-- Projected, per current budget
-- Actual
10/09
11/09 12/09
Month
1/10
7 -9
Charges for Services Projected vs. Actual
0 1,500
�s
c
m
N
a
�o
N 1,000
0
0
500
a
11/09
10/09
.4
—r— Projected, per current budget
-- Actual
12109
1/10
Month
N 1,000
c
N
v► 0
0
6 500
F�
i
sC
d
A
Use of Money & Property Projected vs. Actual
—4 Projected, per current budget
Actual
10/09
10/09
11109
12/09
1/10
Month
7 -10
General Fund Expenditures Projected vs. Actual
—� Projected, per current budget
--f— Actual
12/09 1/10
Month
7 -11
25,000
C
m
20,000
0
t
0
15,000
r
0
r
10,000
5,000
0
10/09 11/09
—� Projected, per current budget
--f— Actual
12/09 1/10
Month
7 -11