101-Staff Report.pdf ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220 www.cupertino.org
CITY COUNCIL STAFF REPORT
Meeting: February 7, 2012
Subject
Treasurer’s Investment and Budget Report for Quarter Ending December 2011
Recommended Action
Accept the report
Discussion and Fiscal Impact
Investments
The market and book value of the City’s portfolio both totaled $46.4 million at December 31,
2011. The portfolio’s 0.28% yield was unchanged from last quarter and a year ago. The LAIF
benchmark yield of 0.38% was unchanged from last quarter, but down 0.08% from a year ago.
The portfolio decreased $1.1 million during the quarter due to sheriff and capital project contract
payments. Five million dollars of maturing Treasuries were used for new Treasury purchases.
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. Market values
on individual securities in the investment portfolio are provided by Wells Fargo Bank
Institutional Trust Services using valuations from Interactive Data Pricing and Reference Data,
Inc.
The PARS retiree health trust increased from $8.8 million to $9.5 million during the quarter due
to investment gains and additional contributions. The trust is up 4.3% since inception eighteen
months ago. Short-term volatility will occur with positive returns expected in the long-run to
fund future retiree medical obligations.
General Fund Budget Report
Revenues for the quarter ending in December 2011 are up 10% from a year ago and ahead of
budget projections. Sales taxes, transient occupancy taxes, licenses/permits, and charges for
services are exceeding expectations while investment returns are coming in below projections.
Expenditures for the same quarter are up 6% over last year, and on track with the budget, as costs
are incurred to service the higher volume of business resulting from higher recreation and
building revenues.
The Audit Committee reviewed this report on January 19, 2012.
_____________________________________
Prepared by:
Reviewed by: Carol A. Atwood, City Treasurer
David Woo, Deputy Treasurer
Approved for Submission by: David W. Knapp, City Manager
Attachments: Investment Portfolio
Retiree Health Trust Report
Investments by Type, Rate of Return, and Compliance Charts
General Fund Budget Report
Expenditure and Revenue Charts