05. Treasurer's Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
CITY OF
CUPEIQINO
DEP ARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. S
Meeting Date: September 5, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for July 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended July 31, 2006. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $47.7 million at the end of July, with a
cost value of $48.1 million. The $400,000 difference, which is an unrealized paper loss,
decreased from the previous month resulting from a leveling off of interest rates. The
portfolio yielded 4.21 % in July up from 4.15% the previous month and 3.02% a year ago.
The Local Agency Investment Fund (LAIF) yielded 4.85% for the same time period, up
from 4.70% in the previous month and 3.08% a year ago.
The City's cash and investment balance remained relatively unchanged from the previous
month. A $500,000 federal agency note matured during the month and it was placed in
short-term liquid investment funds which have recently carried attractive yields.
Investments are in full compliance with City investment policy and/or 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 2006.
Submitted by:
Q
(------- ~
David R. Woo
Deputy Treasurer
Approved for submission:
9vJL
David W. Knapp
City Manager
Printed on Recycled Paper
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City of Cupertino
July 31, 2006
Y UAlb Y
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UKbU
07/21/03 07/21/06 FHLB callable L.LU% 5uu,uuu 5uu,uuu ,uu,UUU 0
dTY PORTFOLIO
"ASH
07/31/06 Wells Fargo - Workers Comp Checkmg 13,751 13,751 13,751 0
07/31/06 Wells Fargo - Regular Checking ':J1.7,4/5 ':JL7,475 ':J2/,47' 0
07/31/06 Wells Fargo - Investment Checkmg 3.114% 1 52,2U5 152,205 152,205 0
1,0~3,4,jl 1,U~,j,4,jl 1,u93,4,jl 0
LAIF
U//3I1Ul> LAll' - ::itate 1'001 4.lSYYo 1l,~U7 ,lSl>L 1l,~u'/ ,lSIIL 1l,~U7,lSIIL U
"ERTIFICATES OF DEPO::iI
03/30/06 03/30/07 Western ::ilerra NatIOnal !:lank 5.UU% ':J5,uuu ':J5,uuO ':J4,54U (460)
03/29/06 03/29/07 First National Bank ot Scottsboro 4.90% 99,000 99,000 911,520 (4IW)
02/03/U6 u5/u l/u7 Mountam NatIOnal Bank 4.6U% 'Jll,1l611 'J'J,UUU 'Jll,2U9 (659)
01/27/06 07/27/07 Lehman Bros Bank 4.60% 97,000 97,000 95,951 (1,049
02/03/06 08/03/07 Busmess Bank of Fox River 4.l>U% ':J':J,uOu ':J':J,uuu 'J7,lS'Jl> (1,104
03/24/04 09124/07 Signature Bank Nat'l Assn 2.70% 99,000 99,000 95,6711 (3,322)
03/28/06 U'J/1.11/U/ Venture Bank 5.uu% 'J7,OuO 'J7,uOu ':J6,1'J5 (805
04/05/06 10105107 MercantIle Bank otMlchlgan 5.00% 97,000 97,000 96,179 (1l21
02/03/06 02/04/08 PnmeSouth Bank 4.l>5% 'J7,UUU 'J7,Ouu 'J5,4115 (1,515
02/10/06 02111/011 Florida CommunIty Bank 4.75% 99,UUO 9'1,000 97,562 (I,4311)
03/17/04 03117/08 Amencan Trust Fed Savmgs Bank 3.UU% 'J'J,UUU ':J':J,UUU 'J4,7911 (4,202
03/19104 031191011 Planterstjrst Cordell UA 3.05% 911,000 'Jll,OOO '13,947 (4,053
03/24/04 03/24/08 Badger State Bank 3.0U% ':I':J,UUU ':J':J,uuu '14,751 (4,249)
03/24/04 03/24/011 Wllmont State Bank 3.00% 99,000 99,000 94,751 (4,249
03/26/04 03/26/08 Pnvatebank & Trust 3.LU% 'J'J,Ouu 'J'J'UUU ':J5,u47 (3,953)
03/30/06 03/211/011 First UeorgIa Bankmg Company 5.05% 99,000 9'1,000 97,912 (l,Ollll)
04/07/04 04/07/08 "ole Taylor Bank, step coupon 2.4'1% 97,UUU '17,000 'J4,9711 (2,022)
09/26/08 Southcoast Communtty Bank 3.20% 'JlS,UUU ':JlS,UUU 'J3,UU4 (4,996)
03/17/04 03/17/0'1 Peoples State Bank 3.40% 'J9,uuu 'J'J,UOU 93,272 (5,728)
03/24/04 03/24/09 Washita State Bank 3.35% 99,uuu '1'1,UUU '13,llu (5,890)
12/30/05 12/3u/0'J Mendlan Bank 4.110% 'J'J,UUU 'J'J,uuu 95,871 (3,129)
12/28/05 12/211/lU Nat'l Bank otNew York City 4.90% 97,000 97,000 93,464 (3,536)
2,159,ll6ll 2,160,000 2,101,120 (58,74ll)
MONEY MARKET FUNDS
07/31/06 Wells Fargo Government 5.U3% 1l,l>32,70lS lS,632,7u8 lS,l>3L,7UlS
ll,632,708 ll,632,70ll ll,632,70ll If
S-2
City of Cupertino
July 31, 2006
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AGENCY NOTES
08/07/03 08/07/06 FHLB callable, step coupon 2.75% 500,UUU 5UU,UUU 4YlJ,690 . (3TO)
08/11 /03 08/11/06 FHLB callable 2.5U% 2,4UU,UUU 2,4UU,UUU 2,J97,744 (2,256)
03/08/04 12/26/06 FHLMC callable 2.30% 797,857 800,000 789,872 (7,985
U7/U9/93 U4/1)/U7 ItHLMC senes 1231 1>.J8% 24,U22 2J,U98 23,u46 (976)
04/30/04 04/30/07 lfHLMC callable 3.30% 499,994 5UU,UUU 492,195 (7,799
l2/22/U3 U6/22/U7 FNMA J.JU% I,UUU,uuu I,uuu,uuu 981,88U (18,120)
04/18/05 10/18/07 lfHLB adjustable rate 4.85% 1,500,UOO 1,500,000 1,493,700 (6,300)
U4114/U4 12/UJ/U7 WNMA callable 2.5u% 995,17u 1,uuu,Ouu 96J,7)U (31,420)
12/13/05 12/28/07 FFCB 4.75% 1,000,677 1,UUU,OUU 992,190 (8,487
04/23/04 01/23/08 FHLB callable J.15% 1,49J,988 1,500,uOu 1,4)4,u70 \~ ,
02/25/04 02/25/08 FHLMC 3.13% 1,000,UOU I,UUU,UUU 967,560 (32,440)
11/21/05 06/23/08 FFCB 5.79% 1,02U,IJ7 l,uuu,uuu I,UU9,JOU (10,837)
01/12/04 08/06/08 FHLB callable, step coupon 3.5U% 999,172 1,UUU,UUU 982,810 (16,362)
04/29/04 10/29/08 IFHLB callable, step coupon 3.50% JUU,UUU JUU,OUU 292,218 (7,782)
12/15/03 12/l5/U8 FHLMC callable, step coupon 4.UU% I,UUU,UUU 1,UUU,UUU 986,89U (13,110)
12/30/03 12/30/08 FHLMC callable, step coupon 4.75% 1,000,000 I,UUU,uuu 989,170 ( 10,830)
U3116/U4 UJ/16/U9 FNMA callable 4.UI% 1,6UU,UUU 1,6UU,000 1,5)2,UUU (48,000)
03/30/04 03/30/09 FHLB callable, step coupon 4.00% 600,UUU 600,000 594,186 (5,814)
04/30/04 04/30/09 FHLB callable, step coupon J.U% I,UUU,Ouu I,UUU,uuu 994,J80 (5,620)
12/28/05 12/28/09 FHLB callable 5.U4% 9l5,OUU 9l5,UOU 9U5,566 (9,434)
11/30/05 04/07110 FFCB callable J.7u% 956,758 I,UUO,UUU 948,UU (8,628)
11/21/05 07/12/10 FHLMC 4.13% 978,702 I,UUU,UUU 959,69U ~u, '~J
12/15/05 12/15110 IFHLMC callable 5.U4% I,UUU,uuu l,uuO,uuu 98),48U (14,520)
04121/06 04/07111 FNMA callable 5.75% 748,088 750,000 746,483 (1,605)
23,329,564 23,388,098 23,002,000 (327,564)
US GOVERNMENT SECURITIES
03/31105 U8/311U6 U::; Treasury Note 2.38% 982,812 I,UUU,UUU 997,730 14,918
982,1112 1,000,000 997,730 14,9111
Total Manage I PorUolio 'Ill,IUI>,~'I:l 'Ill,I11~,U" 'I',''''I,Il:l1 (371,394)
Average Yield 4.21%
Average Length to Maturity in years) 1.05
TRUST & AGENl:Y PORHULIO
MONEY MARKET FUNDS
07/31/06 Wells Fargo Government (Kester Trust) 5.03% 43,5J9 4J,5J9 4J,539 0
Total Trust & Agency Portfo IO 'I3,:l'" 'I",:l'" 'U,:l'" 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct #078793 Ambac Assurance Secunty Bond I 1 I
Bond Payment Acct #U78794 Wells Fargo Treasury Plus Money Mkt 4.56% 3,889 3,889 3,889 0
ITotal Bond Reserve Portfolio ",1111' ",1111' ",1111' 0
S-3
Investments by Type
Managed Portfolio
US Treasuries
2%
Agency Notes
49%
Cash
2%
CD's
4%
I Rate of Return Comparison I
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
8/05
11/05
2/06
5/06
7/06
6/06
3/06
4/06
12/05
1/06
9/05
10105
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
July 31,2006
Category
Treasury Issues
US Agencies
Medium Term Corporate Bonds/Notes
LAIF
Money Market Funds
Maximum Maturities
Per Issuer Max
Bankers Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase agreements
Standard
No limit
No limit
30% with A rating
$40 million
20%
Up to 5 years
10% (except LAIF)
180 days & 40%
270 days & 25%
30%
365 days
Prohibited
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Complies
Comment
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