11. Treasurer's Report
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
CITY OF
CUPEIUINO
DEP ARTMENT OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No. \ l
SUBJECT AND ISSUE
Meeting Date: February 6, 2007
Accept the Treasurer's Investment Report for December 2006.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended December 31, 2006. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $46.6 million at the end of December, with a cost
of $46.8 million. The difference, an unrealized paper loss, increased slightly from last month.
The portfolio yielded 4.64% in December up from 4.54% the previous month and up from 3.56%
a year ago. The Local Agency Investment Fund (LAIF) yielded 5.13% for the same time period,
unchanged from the previous month, but up from 3.81 % a year ago.
The City's cash and investment balance decreased by $1.2 million due to the City's semi-annual
debt service payment. A Federal agency security matured during the month and was deposited
into LAIF.
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 December 2006.
su. bmr5~
/~~
David R. Woo
Deputy Treasurer
Approved for submission:
Da~pp
City Manager
Approved by:
U;4>tA--P a t2-1uJZ/71zfJ
Carol A. Atwood
City Treasurer
" -I
Printed on Recycled Paper
City of Cupertino
December 31,2006
DESCRIPTION
SECURITIES MATURED
03/08/04 . 12/26/06 ~FHLMC callable
,
2.30%[ . 800,000
SECURITIES PURCHASED
LAlF
MATURITY
VALUE
800,000
,
,
800,000 i
j
I
. -----~~~1------- -tCI~:Y.P~I!!!()_L!C>.____~ -1
CASH+~ .lii3I/o~weJ!S Fa~~o-- ~ork;s Comp checkin~ ... 23,452_._____:23,450
.__.___. ..-t.i- _.J.~.1....3. 1./2.6..1 Wells F. argo - Regular ~_h.ec.k..in.g.... . ....:- _ _I 278,291. 278,291
._1~~_I~/3I/06!Wells Far&~ - !~~stmentS_we~__-=L____ - _n 30154Tt- 301,74~
+- ~------------- ----- 1 --1----
+ -- -- ! 1 ~
12/3I/=~1=~-S~ate~ool .1 5.13% 17,379,6561 17,379,656'
CERTIFICATES OF DEPOSIT 1
03/30/06 03/30/07 bve~tern Sierra National Ba~k----nj 5.00%1 95,000 ,
03/29/06 03/29/07 ifirst National Bank ofScottsboro 4.90%~ 99,000 '
02/03/06 05/01/07 [Mountain N~tion~iBa~k 4.60%1 98,942 :
01/27/06 07/27/07 iLehman Bros_Ban_k 4.60%] 97,0001
02/03/06 08/03/07 I Business Bank of Fox River 4.60%[ 99,000 i
03/24/04 09/24/07 ; Signature 13allkl'Jllt'I~sn 2.70% 99,000 [
03/28/06: 09/28/07 !Venture Bank 5.00% 97,000 I
04~05/2~-L__Io/~iD7J~~~~antile Bank of Michigan 5.00%i 97,OOO-r-.
~~;~61~H-~i;i~;~:.-t~:~~~~~~~~:~~iYBank. ::~~~j :~:~.~~ T-
o... 3../.17/04 :()3/17/08~~eriCll.n Tru. st.Fed. s.a..Vin&5..Bank-! --33,.00Jl5~oL 99,000;
__O}/19/04 i 03/19/08 Planters first Co.!'i(:le GA 10 l 98,000 1
Q3/2~/04~_03/24/08 . Badger State Bank . 3.00%1 99,0001-
1
03/24/04 03/24/08Wilmont State Bank 3.00%: 99,OQD[
03/26/04 03/26/08 : Private Bank & Trust . _ ,. 3.20% 99,000
03/30/06 03/28/0qF'i~stGeorgia Banking Company 5.05%' 99,000 :
04/07/04 04/07/08 fcole Taylor Bank, step coupon 2,49%: 97,000
03/26/04 09/26/o.8-+~olll~_ Coast Community Bank 3.20%: 98,000
03/17/04 03/17/09 ~Peoples~a-'(:I3ank 3.40% 99.000 :
03/24/04 03/24/09 :Washita State Bank 3.350/oj 99,000,
12/30105 12/30/09 [M;;dian Ba!1.k -- ~.. 44..'.89-00..~ot 9997',000000 ,:"
12/28/05 12iz8/10!Nat'l Ba~k~fNew York City II
. +- ... n_ _________
MONEYMARj ~~i~'F'''"Go'=m~' - . [~"3%1-~-:::;:::1
, 8,313,282 .
o
.. ... ------i--
t
23,450 i 0
278,291 : 0
t
o I 0
301,741 i 0
_ .. r-------
17,379,656
95,000 94,885
99,0.00 , 98,859
99,000 ' 98,701 I
..~7,oool 9~,5241
99,000 i 98,500 I
9~Qg()_1 96,947j
_ _ 9J,OOo. [ 96,675 ~
97,000 j 96,657 L-
~'7,000 ! 96.125 :
99,()9()_~ 98,196 .
99,000 . 95,921 i
---------.--------
98,000 94,987 :
-- ---------
99,000 95,879 )
99,000 , 95,878 i
99,000 l 96,062
99,000 i 98,479
,
97,000 l 93,867
98,000 ____94,000:
99.000 94.~00 ;
99,000 94,187
99.000 , 97,064 .
97,000 ! -- - 94--:-~iii---~
I i
2,160,QII.0-L_2,117,575T
_8il}2gj- 8,~I3:28~m
8,313,282 t 8,313,282 .
o
(115)
(141)
(241)
(476)
(5002
(2,053)
(325)
uJ~i3)
(875)
(804)
n(3,O]9)
(3,013)
(3,121)
(3,122)
(2,938)
(521 )
(3,1331
(4,000)
(4.700)
(4,813)
(1,936)
(2,1 Ii!)
(42,367)
o
/1-2.
City of Cupertino
December 31,2006
ACTIVITY DATE
PURCHASE MATURITY
AGENCY NOTES
DESCRIPTION
[.----------
_j '_0'- __._______________..._, .
__()7~~93 0~1I5/07 ~C with principalj'ayotT__ j
04/30104 04/30107 ! FHLMC callable '
-- - --- -.----- -.1. ...- ---
12/22/03! 06/23!0~_2'!~MA____ ._
04/18/05: 10118107 i FHLB adjustable rate
04/14/04 12/03/07 TFNMA callabl~- ---
12/13/05 12/28/07 'FFCB
- -1--
04/23/04 01123/08 I FHLB c~llable
02/25/04 02/25/08 1 FHLMC
11/21/05 n()6/23/0g-1 FFCB
.-1-------------- -
01/12/04 : 08/06/08' FHLB callable, step coupon
- -r -
04/29/04 I 0139/~8_I'!ILB callable, step coupon
12/15/03 12/15/08 jFHLMC callil~l.sst(:pc_()upon
12/30103 12/30108 i FHLMC callable, step coupon
03/16/04 03/16/09jFNMA cal1abl~n---__- _
03/30104 1 03/3~/09 I FHLB callable, step coupon
12/28/05 i 12/28/09 'FHLB callable
11130105\ _ _Q.~~7/10_ FFCB callable
11/21/05' 07112110 FHLMC
12/15/051 \2/15110 IFHLMC callable
04/21106 104/07/11 IFNMAcall~
- -+-------Ii~~1 - ---:=---~------
+- - - __un
____....L...._ _ __ _
Total Managed Portfolio 1----
Averag~Yield _'
Average Len~th to MaturitlJin teal's2
[TRUST P_ORTFOLlO (KESTER TRUST)
CASH
12/31/06 jWells Institutional Money Mkt Acct
Total Trust Portfolio
--I
t --'------------.-.---- --
LBOND RE_SEIlYE PORTFOLIO
Bond R~~~~-; Acct I Ambac Assurance Security Bond
Bond Payment Acct--fWells Tr~~sul)'}lu~-M()neyMkt -
Total Bond Reserve Portfolio
COUPON ADJUSTED
RATE COST
--+
1-
~.7~~ 7.751
_ _ 3.-.~9_~;---~C)9,997 I
3.30%1 1,~OO,OOO_j
4.56% 1 1,500,000 j
2.50% 996,678 !
I
4.75% 1.000,"-7~l
315%! 1,495,688'
1
3.13% 1,000,000;
-------------- 1
5790, 1,015,691,
3.50%1 999,344 :
3.50%1 300,000 '
4.00-o/~1 1,000,000
4.75% 1,000,000
j
4.01%1 1,600,000
4.00%, 600,000 .
5.04%i 915,000 ·
_:00%1_ 961,673 r
4.13!or_. 98o,96~1__
5.04%[ 1,07-4008- ',020509~-.
5.75%i_____t___
~ j
i 18,621,519 I
-----t------------- --- ---I-
, i
46776 140
4.64%!
0.821
44461 I
4.65%
I
1,118,684
1 118 684 i
MATURITY
VALUE
7,453
500,000
1,000,000 '
1,500,000
1,000,000
1,000,000
1,500,000
\,000,000
1,000,000
__ - - - _n__________
1,000,000
300,000
._1,()(j(),000 ~_
_ _1..00(J,0(j0:
1,600,000
600,000
915,000
1,000,000
1,000,000
1,000,000
750,000
18,672,453
46 827 132 I
44,461 I
44461
I
1,118,684 1
1 118 684 '
MARKET
VALUE
UNREALIZE
PROFITILOSS
I
I
~,'!3..9L__ (312)
497,010 i (2,987)
991,250 1 (8,750)
1,495,095 1 (4,905)
1
975,630 · (21,048)
995,310 (5,166)
1,468,590 : (27,098)
977,3201 H _Q3,~8()2
1,009,750 (5,941)
990,000 1 (9,344)
294,843 (5,157)
994,260 : (5,740)
994,940 i (5,060)
1,565,504 : (34,496)
-. .
597,378 (2,622)
909,565 ' (5,435)
960,940 1 (733)
974,380 . (6,582)
993,8601--- -(6.140)
749,2951 _ i,03T
18,442:359-1 _ _ J!Z2....1~)
46554613
221527
44,461
o
44 461 i
o
I
- ----------
1,118,684
1 118 684 i
o
o
/1 ~]
Investments by Type
Managed Portfolio
Agency Notes
39%
LAJF
37%
Cash
1%
Money Market
18%
I Rate of Return Comparison I
6.00%
1.00%
5,00%
4.00%
3.00%
2,00%
0.00%
1/06
2/06
3/06
4/06
5/06
6/06
7/06
8/06
9/06
10/06
11/06
12/06
Il-~
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
December 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
\1-)