08. Treasurer's Investment 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. g
Meeting Date: March 6, 2007
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for January 2007.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended January 31, 2007. The report
includes all funds in control of the City.
The market value of the City's portfolio totaled $52.2 million at the end of January, with a cost
of $52.4 million. The difference, an unrealized paper loss, remained unchanged from last month.
The portfolio yielded 4.67% in January up from 4.64% the previous month and up from 3.65% a
year ago. The Local Agency Investment Fund (LAIF) yielded 5.16% for the same time period,
compared to 5.13% for the previous month and 3.96% a year ago.
The City's cash and investment balance increased significantly by $5.6 million due to property
taxes received in-lieu of sales taxes and vehicle license fees. Staff moved $5 million out of the
money market fund into LAIF, as money market fund yields fell below the LAIF rate,
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 January 2007.
;;G0--
David R. Woo
Deputy Treasurer
Approved for submission:
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David W. Knapp
City Manager
Approved by:
~t a ~{j-~'Z; cQ
Carol A. Atwood
City Treasurer
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Printed on Recycled Paper
City of Cupertino
January 31, 2007
ACTIVITY DATE
PURCHASE MATURITY
DESCRIPTION
COUPON ADJUSTED
-~- ----.---
RATE COST
MATURITY
VALUE
MARKET
VALUE
UNREALIZE
PROFIT/LOSS
I
SECURITIES MATURED
I
~. ~ nm____~L_.
-t
. _. .... ~ .-~~___----t~=_-
CITY PORTFOLIO t I
- --=~=-~-=--r-- ------- ------
Wells Fargo - Workers Col11p Checking_ ___~_~22!.. 9,251 1
Wells Fargo - Regular Checking j_ . .. .. _6~7,42~_ f-.. _ -~~i7,4~0~-
Wells FargO-_!I1..ves~m~t =~~J>_ -=- --- -646,67~ [- n6_46,67i+-
j - --- - -~---- --- --- - l - i
QI!31/()'7JL-r\!I"_=-St<ite Pool_______~__t- 5~i6%- 27~092J9oi- 27,092,1901 27,092,19_0
I 1, i t
CERTIFICATES OF DEPOSIT -t I f- ------1---- .
--03/30/06-J-03/30107-rwe;t~sie~~Natio~al~B~~k-+---:;:o/.1- 95_.<JOOj -~5'OOO: - 94,923 i-- (77)
Q3!~/o.~J o.3j29/07_iFirst National~ank()fS~()tts.1>oro _, .iJ0'701 99,000 : 99,000 : 98.907 L (93)
02/03/06r_05/01/07 M()u!l~ainNatio_~lBank_ _ ~ 4,60%1... 98,957J 99,000 i _98_.,7~3 (1.1l~)
_~ 91!'~..lQ6 .!!.7!2]~Q7 _ Lehma.ll Bl'o.s_~a.lJIc... __ _ __ ____ ~60% 97,000 I' 97,000 ___.J!i,54~ (4_~1)
02/03/06 08/03/07 Business Bank of Fox River 4.60% 99,000 , 99,000 98,519 (4!l)
- -_o.}/24104 - .9.9!24!Oi_ Sign~!.~~_r!a~k}\lat'I-^.;s~- ~ -- - 2.70'YoL _ . _9J-,Oo.n=- 99,000 97,112 (1,888)
__D1~8/06 i_ 09/28/07_ Venture Balllc.___________ ___ _ 5:00%1 _ 97,000 I 97,000 96,646 (354)
04/05/061 10/05/07 Mercantile Bank ofMich~_a.~ 5.00% 97,000 97,000 96,639 (361)
02/03/06 I 02/04/08 PrimeSouth Bank 4.65%1 97,000 97,000 95,977 11,023)
--6j~{i~~~I- - 6-j~:j~~: 1:~:~();:~~.Il~~t~~nis Bank - ~:~~~j ~~:~~~-~~1~6~ --~- ... ~HH- ~--(3-~_~~
03/19/04 i 03/19/081pl;~ters First Cord~le GA ... 3.050/01 98,000 ' 98,000 I 94~946 i (3,054)
~;i1To11- ~-~i17~H~~~~~~~:t:-~:~k - H6i.t---:}6%~t ~::~~~ t- _ -~~:Hi+-----~:i:~~
03/26/0i: _03/2_6~08jPr~~e..~an!<~_!.~t___ t-- 3.200/0) _99,()0()J _____99..Q()Q~~_ __9(j:004L__(2,996)
03/30/06 i 03/28/08 iFirst Georgia Banking Company j __ 5.05%, __99,0001. 99.000 : 98.266 ~ (734)
E~~:i E~iiHf!:~:2~~~i;=:;~~1 :::1:1 ..~n1Hm-~im
....Q3/2i104 -- -03/~~O~ ~h-it;st;;t~~~~~_ m_________m _ _ - }.35_~d n~~,QOO 1- _?..9coo.n~ ~- __ _ ~~,I_I ~X _ (~,~8I)
12/30/05 12/30/09 Meridian Bank 4.80%~ 99,000 . 99,000 96,801 (2,199)
~8/05. 12/28/.!2.. ~a!'i..Ba_~k_()f_I'J.~w York City _ 4.90%1 97,000 97,000 94,528 (2,472)
----+
_______________ ___m_I__~,IS9,9~z.. u_ _;160!~o.O_ __ 2,1I!i~~89
--S:llo/;r 3.928,933
3,928,933
I
t _ _ --n-~_-----==-~~.r=-
l SECURITIES PURCHASED 1
- --~--
,
t
t
CASH
01/31/07
01/31/07
01/31/07
-
9,251 I
_.637~
0'
646,676
o
o
o
o
LAW
o
_ {~32_68)
MONEY MARKET FUNDS
01/31/07 j Wells F~rg~ G~vem~ent
_____m - --mi-
3,928,933 j 3,928,933 1
3,928,933 1 3,928,933 1
o
t-J...
City of Cupertino
January 31,2007
ACTIVITY DATE
PURCHASE MATURITY
AGENCY NOTES
DESCRIPTION
07/09/93 04/15/07 FHL~C:: \VithJlf2IlCipalpa)'off
04/30/04 04/30/07 ,FHLMC callable
--I - - ------ -
12/22/03 06/22/07 i FNMA
-, ------
04/18/05 10/18/07 iFHLB adjustable rate
-- 04n4/'04 12/03/07lF'NM~~iIabl~m-
12/13/05 12/28/07: FFC~__ _ _
~~~~;~: __~~j~~;~:-II~:-t~~allable
11/21/05 06/23/08 FFCB
01/ ri/iM;---08/06/oi FHLB callable, st~p c~~po~
"__'n_ ---r--- ~ ----------,---- --
04/29/04 I 10/29/08: FHLB callable, step coupon
------t------- .--, - -,----
__I?I~~/23t 12/15/08 [FHLMC callabl~,_Stel)5()UpoI1
12/30/03 j. 12/30/08 j FH~rvIC _c<llla.1'le'l>tepcoupon
03/16/04 I 03/16/09: FNMA callable
03l30/04t-03/30/09 FHLB~-allable, step coupon
~ - ------f---- ________n______ -- ~
12/28/05 12/28/09 FHLB callable
- --.., --~_.- --------- ---'---' _.~ ~-
11/30/05 04/07/10 FFCB callable
~._-- -------- ---
11/21/05 I 07112/10 FHLMC
I2II5IO~~ 12115110 fHlMe ,wl,bl,
.:n 1/06J~~]fNMA "l1,bl,
Total Managed Portfolio
- - ,.
Average_Yield '
Average Len\lth to Maturity (in~ll.rsL_
COUPON ADJUSTED
__... U_ __n_'____
RATE COST
MATURITY
VALUE
MARKET
VALUE
UN REALIZE
PROFIT/LOSS
6.66% -__~~~'2;11 =~-~---5,_00 1_ _4,99.2---(~I I)
3.3~'JIoL___499,998 520,00.2+ 497,505 (2,493)
_ 3.30~l_I ,000,000 I ,000,OOOL___~9~,500 (7,500)
4.4~~1!__1~5.90'000 j 1,500,000 1--- _~'495'6S.0~ (4,320)
_J~O'Yo ___ . 99(j,984+1,020,O_()0-+-_...227,~00 (19,484)
4.75% 1,000,435 I 1,000,000 ! 995,3]0 (5,]25)
------- , . -- --+-----.---- 1
3.15%] 1,496,033 j . I,~OO,O()O_~_ 1,470,000 l (26,033)
3.13%; 1,000,000 i I,OOO,()()2~n_ 978,.04.0 (2],960)
5.79o/oL 1,014,7~1~.2..0~0Q.0 I ].007,860 (6,931)
3.50~ 999,378 1,000,000 990,630 (8,748)
3.50%f 300,000 300,000 295,032 . (4,968)
4.00% 1,000,000 1,000,000 994,050 I (5:950)
: 4.75%I1,OO~-:<looT 1,000,000 992,9~_L__=_(-&040)
I _ _ 4.0 I %1 1,600,000 i 1,600,000 I 1,564,000 (36,000)
.. [~-~.()o~ - -600,000 r - 600,0(lo]---- 597,564 (2,436)
---l-- 5.04%: - ~~~,OOO ~ 915,..000 I 908,421 ((j~579)
- - :::~f :::::: ! :::::":::~... :;::::: (;:::::;
- - I- ~O~~_' ___~,20.iOOO_-=~,()~0,OOO u 990,]30 u. J?:870)
, 5.75% 748,294 750,000 I 748,598 304
---------,--- - - t
I
i t
18,620,202 j 1S.,670,~_01 l..I~,43~,i40~ u_ (190,062)
52214128 I
52 497 800 !
4.67%J
0.70]
,
-1 ____mum r
44ju 44:j- - - 0
il
44 652 44 652
CASH
i
iTRUST PORTFOLIO (KESTER TRUST) I
j - --- ------ ---+
J-
5.07%
_'H
01/31/07 Wells Institutional Money M~t Ac~t
Total Trust Portfolio
I
t
BOND RESERVE PORTFOLIO
n i _ _"__________
Bond Reserve Acct !.A.m--"<I~,~sll~nc:~_Se~urity Bond
.J3.o.n_dPa~111~ti\.cct. : Wells Treasury Plus Money Mkt
Total Bond Reserve Portfolio
---
44,652
44 652
o
-- -. --+---~--_.
t-
4.61%
I
2,219
2219
o
o
I
2,219
2219
I
2,219
2219 i
~-3
Investments by Type
Managed Portfolio
US Treasury Notes
0%
Agency Notes
36%
LAIF
52%
Cash
1%
I Rate of Return Comparison I
1.00%
6.00%
5.00%
4.00%
3.00%
2.00%
0.00%
2/06
3/06
4/06
5/06
6/06
7/06
8/06
9/06
10/06
11/06
12/06
1/07
g--Lf
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
January 31,2007
Category
Standard
Treasury Issues
US Agencies
Medium Tenn 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
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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