07 Treasurer Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
CITY OF
CUPEIUINO
DEPARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. I
Meeting Date: October 17, 2006
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for August 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended August 31, 2006. The report
includes all funds in control of the City.
The market value of the City's portfolio totaled $47.1 million at the end of August, with a cost of
$47.4 million. The difference, an unrealized paper loss, decreased from the previous month. The
portfolio yielded 4.47% in August up from 4.21 % the previous month and 3.07% a year ago. The
Local Agency Investment Fund (LAIF) yielded 4.95% for the same time period, up from 4.85%
in the previous month and 3.18% a year ago.
The City's cash and investment holdings fell by $600,000 as two monthly payments of the
Sheriffs contract cleared during the month. $3.9 million in Federal agency and Treasury notes
matured with the proceeds placed in short-term liquid investments which continue to carry
attractive yields. Note the one-day overdraft of $5,000 in the workers compensation checking
account.The City has reminded its insurance administrator of the need to inform staff if a large
claim is paid, so that funding of this account can be assured.
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.
RECOMMENDA TION
Accept the Treasurer's Investment Report for August 2006.
Submitted by:
~~
David R. Woo
Deputy Treasurer
Approved for submission:
B~
David W. Knapp
City Manager
Approved by:
~{9-{i () Ctl-urh>-fJ
Ca 01 A. Atwood
City Treasurer
Printed on Recycled Paper
'7-(
City of Cupertino
August 31, 2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
PURCHASE y DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
SECURITIES MATURED
08/07/03 08/07/06 FHLB callable, step coupon 2.75% 500,000 500,000 500,000 0
08/11/03 08/11/06 FHLB callable 2.50% 2,400,000 2,400,000 2,400,000 0
03/31/05 08/31/06 US Treasury Note 2.38% 1,000,000 1,000,000 1,000,000 0
SECURITIES PURCHASED
CITY PORTFOLIO
CASH
08/31/06 Wells Fargo - Workers Comp Checking (4,999) (4,999) (4,999) 0
08/31/06 Wells Fargo - Regular Checking 543,828 543,828 543,828 0
08/31/06 Wells Fargo - Investment Checking 3.83% 0 0 0 0
538,829 538,829 538,829 0
LAIF
08/31/06 LAIF - State Pool 4.95% 15,307,862 15,307,862 15,307,862 0
CERTIFICATES OF DEPOSIT
03/30/06 03/30/07 Western Sierra National Bank 5.00% 95,000 95,000 94,700 (300)
03/29/06 03/29/07 First National Bank of Scottsboro 4.90% 99,000 99,000 98,699 (301)
02/03/06 05/01/07 Mountain National Bank 4.60% 98,883 99,000 98,462 (421)
01/27/06 07/27/07 Lehman Bros Bank 4.60% 97,000 97,000 96,290 (710)
02/03/06 08/03/07 Business Bank of Fox River 4.60% 99,000 99,000 98,256 (744)
03/24/04 09/24/07 Signature Bank Nat'1 Assn 2.70% 99,000 99,000 96,233 (2,767)
03/28/06 09/28/07 Venture Bank 5.00% 97,000 97,000 96,555 (445)
04/05/06 10/05/07 Mercantile Bank of Michigan 5.00% 97,000 97,000 96,545 (455)
02/03/06 02/04/08 PrimeSouth Bank 4.65% 97,000 97,000 95,956 (1,044)
02/ I 0/06 02/11/08 Florida Community Bank 4.75% 99,000 99,000 98,049 (951)
03/17/04 03/17/08 American Trust Fed Savings Bank 3.00% 99,000 99,000 95,450 (3,550)
03/19/04 03/19/08 Plantersfust Cordell GA 3.05% 98,000 98,000 94,587 (3,413)
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99,000 95,407 (3,593)
03/24/04 03/24/08 Wilmont State Bank 3.00% 99,000 99,000 95,408 (3,592)
03/26/04 03/26/08 Privatebank & Trust 3.20% 99,000 99,000 95,690 (3,310)
03/30/06 03/28/08 First Georgia Banking Company 5.05% 99,000 99,000 98,410 (590)
04/07/04 04/07/08 Cole Taylor Bank, step coupon 2.49% 97,000 97,000 95,556 (1,444)
03/26/04 09/26/08 Southcoast Communtiy Bank 3.20% 98,000 98,000 93,774 (4,226)
03/17/04 03/17/09 Peoples State Bank 3.40% 99,000 99,000 94,216 (4,784)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 94,065 (4,935)
12/30/05 12/30/09 Meridian Bank 4.80% 99,000 99,000 97,052 (1,948)
12/28/05 12/28/10 Nat'l Bank of New York City 4.90% 97,000 97,000 94,969 (2,031 )
2,159,883 2,160,000 2,114,329 (45,554)
7~2
City of Cupertino
August 31,2006
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
y DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
MONEY MARKET FUNDS
08/31106 Wells Fargo Government 5.09% 8,965,700 8,965,700 8,965,700
8,965,700 8,965,700 8,965,700 0
AGENCY NOTES
03/08/04 12/26/06 FHLMC callable 2.30% 798,306 800,000 792,232 (6,074)
07/09/93 04/15/07 FHLMC with principal payoff 6.31% 20,605 19,813 19,768 (837)
04/30/04 04/30/07 FHLMC callable 3.30% 499,994 500,000 493,405 (6,589)
12/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 984,060 (15,940)
04/18/05 10/18/07 FHLB adjustable rate 4.79% 1,500,000 1,500,000 1,492,680 (7,320)
04/14/04 12/03/07 FNMA callable 2.50% 995,476 1,000,000 967,500 (27,976)
12/13/05 12/28/07 FFCB 4.75% 1,000,637 1,000,000 994,690 (5,947)
04/23/04 01123/08 FHLB callable 3.15% 1,494,332 1,500,000 1,460,160 (34,172)
02/25/04 02/25/08 FHLMC 3.13% 1,000,000 1,000,000 972,060 (27,940)
11121105 06/23/08 FFCB 5.79% 1,019,237 1,000,000 1,011,690 (7,547)
01112/04 08/06/08 FHLB callable, step coupon 3.50% 999,206 1,000,000 985,940 (13,266)
04/29/04 10/29/08 FHLB callable, step coupon 3.50% 300,000 300,000 293,343 (6,657)
12/15/03 12/15/08 FHLMC callable, step coupon 4.00% 1,000,000 1,000,000 989,490 (10,510)
12/30/03 12/30/08 FHLMC callable, step coupon 4.75% 1,000,000 1,000,000 993,630 (6,370)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 1,600,000 1,559,504 (40,496)
03/30/04 03/30/09 FHLB callable, step coupon 4.00% 600,000 600,000 595,500 (4,500)
04/30/04 04/30/09 FHLB callable, step coupon 3.13% 1,000,000 1,000,000 996,250 (3,750)
12/28/05 12/28/09 FHLB callable 5.04% 915,000 915,000 907,854 (7,146)
11130/05 04/07/10 FFCB callable 3.70% 957,753 1,000,000 956,250 (1,503)
11121105 07/12/1 0 FHLMC 4.13% 979,160 1,000,000 968,440 (10,720)
12/15/05 12/15/10 FHLMC callable 5.04% 1,000,000 1,000,000 992,680 (7,320)
04/21106 04/07/11 FNMA callable 5.75% 748,123 750,000 748,830 707
20,427,828 20,484,813 20,175,956 (251,872)
Total Managed Portfolio 47,400,102 47,457,204 47,102,676 (297,426)
Average Yield 4.47%
Average Length to Maturity (in years) 1.02
TRUST PORTFOLIO (KESTER TRUST)
CASH
08/31106 Wells Institutional Money Mkt Acct 5.04% 43,719 43,719 43,719 0
Total Trust & Agency Portfolio 43,719 43,719 43,719 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct #078793 Ambac Assurance Security Bond 1 1 1
Bond Payment Acct #078794 Wells Fargo Treasury Plus Money Ml 4.63% 4,381 4,381 4,381 0
Total Bond Reserve Portfolio 4381 4381 4381 0
/.-3
5.50%
5.00%
4.50%
4.00%
3.50%
Investments by Type
Managed Portfolio
Agency Notes
43%
~~~III~~..~
1~~~~~~~~S:r~~
I~~~~~~~~~~~S~.
I~~~~~~~~~~~~~S~ LAIF
I~~~~~~~~~~~~~~~~ 33%
~~~~~~~~~~~~~~~~~~,
I~~~~~~~~~~~~~~~~I~
I~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~
rf~~~~~~~~~~~~~~~~~I~
I~~~~~~~~~~~~~~~~~~I~
~~-.I~~~~~~~~~~~~~~~~~
~~-.I~~~~~~~~~~~~1
~if-l~~~~~~~~t
~~-I~~~~f
~~1
Cash
1%
Money
Market
19%
IRate of Return Comparison I
3.00% --~-
2.50% . ._--~..._-----
_1= ~~:rtinO I
2.00%
1.50%
1.00%
9/05
10/05 11/05 12/05
1/06
2/06
3/06
4/06
5/06
6106
8/06
7/06
').-y
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
August 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
I~J