08. Treasurer's 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. 8
Meeting Date: April 3, 2007
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for February 2007.
BACKGROUND
Enclosed is the Treasurer's Investment Report for the month ended February 28, 2007. The
report includes all funds in control of the City.
The market value of the City's portfolio totaled $51.6 million at the end of February, with a cost
of$51.7 million. The difference, an unrealized paper loss, improved by $73,000 from last month.
The portfolio yielded 4.69% in February up from 4.67% the previous month and up from 3.74%
a year ago. The Local Agency Investment Fund (LAIF) yielded 5.18% for the same time period,
compared to 5.16% for the previous month and 4.04% a year ago.
The City's cash balance decreased by $0.7 million as the quarterly sales tax adjustment occurred
in this month. No other investment activity happened as short-term liquid rates continued to
provide 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 February 2007.
Approved for submission:
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David :7:1;;- f
City Manager
David R. Woo
Deputy Treasurer
Approved by:
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Carol A. Atwood
City Treasurer
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Printed on Recycled Paper
City of Cupertino
February 28,2007
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
PURCHASE MATURITY DESCRIPTION RATE COST VALUE VALUE PROFIT/LOSS
SECURITIES MATURED
SECURITIES PURCHASED
CITY PORTFOLIO
CASH
02/28/07 Wells Fargo - Workers Comp Checking 13 ,693 13 ,693 13 ,693 0
02/28/07 Wells Fargo - Regular Checking 918,459 918,459 918,459 0
02/28/07 Wells Fargo - Investment Sweep 3.88% 30,933 30,933 30,933 0
963,085 963,085 963,085 0
LAIF
02/28/07 LAIF - State Pool 5.18% 26,192,190 26,192,190 26,192,190 0
CERTlllCATESOFDEPOSIT
03/30/06 03/30/07 Western Sierra National Bank 5.00% 95,000 95,000 94,961 (39)
03/29/06 03/29/07 First National Bank of Scottsboro 4.90% 99,000 99,000 98,953 (47)
02/03/06 05/01107 Mountain National Bank 4.60% 98,970 99,000 98,843 (127)
01127/06 07/27/07 Lehman Bros Bank 4.60% 97,000 97,000 96,640 (360)
02/03/06 08/03/07 Business Bank of Fox River 4.60% 99,000 99,000 98,618 (382)
03/24/04 09/24/07 Signature Bank 2.70% 99,000 99,000 97,400 (1,600)
03/28/06 09/28/07 Venture Bank 5.00% 97,000 97,000 96,749 (251)
04/05/06 10/05/07 Mercantile Bank of Michigan 5.00% 97,000 97,000 96,744 (256)
02/03/06 02/04/08 PrimeSouth Bank 4.65% 97,000 97,000 96,338 (662)
02/ I 0/06 02/11108 Florida Community Bank 4.75% 99,000 99,000 98,401 (599)
03/17/04 03/17/08 American Trust Fed Savings Bank 3.00% 99,000 99,000 96,073 (2,927)
03/19/04 03/19/08 Planters First Cordele GA 3.05% 98,000 98,000 95,129 (2,871 )
03/24/04 03/24/08 Badger State Bank 3.00% 99,000 99,000 96,025 (2,975)
03/24/04 03/24/08 Wilmont State Bank 3.00% 99,000 99,000 96,025 (2,975)
03/26/04 03/26/08 Private Bank & Trust 3.20% 99,000 99,000 96,179 (2,821)
03/30/06 03/28/08 First Georgia Banking Company 5.05% 99,000 99,000 98,290 (710)
04/07/04 04/07/08 Cole Taylor Bank, step coupon 3.01% 97,000 97,000 94,000 (3,000)
03/26/04 09/26/08 South Coast Community Bank 3.20% 98,000 98,000 94,000 (4,000)
03/17/04 03/17/09 Peoples State Bank 3.40% 99,000 99,000 94,169 (4,831)
03/24/04 03/24/09 Washita State Bank 3.35% 99,000 99,000 94,058 (4,942)
12/30/05 12/30/09 Meridian Bank 4.80% 99,000 99,000 96,552 (2,448)
12/28/05 12/28/10 Nat'1 Bank of New York City 4.90% 97,000 97,000 94,189 (2,811)
2,159,970 2,160,000 2,118,336 (41,634)
MONEY MARKET FUNDS
02/28/07 Wells Fargo Government 5.13% 3,806,279 3,806,279 3,806,279
3,806,279 3,806,279 3,806,279 0
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City of Cupertino
February 28,2007
ACTIVITY DATE COUPON ADJUSTED MATURITY MARKET UNREALIZED
PURCHASE MATURITY DESCRIPTION RATE COST VALUE VALUE PRom/LOSS
AGENCY NOTES
07/09/93 04/15/07 FHLMC with principal payoff 6.73% 2,864 2,755 2,750 (114)
04/30/04 04/30/07 FHLMC callable 3.30% 499,999 500,000 498,375 (1,624)
12/22/03 06/22/07 FNMA 3.30% 1,000,000 1,000,000 994,060 (5,940)
04/18/05 10/18/07 FHLB adjustable rate 4.57% 1,500,000 1,500,000 1,496,340 (3,660)
04/14/04 12/03/07 FNMA callable 2.50% 997,260 1,000,000 980,630 (16,630)
12/13/05 12/28/07 FFCB 4.75% 1,000,399 1,000,000 996,880 (3,519)
04/23/04 01/23/08 FHLB callable 3.15% 1,496,344 1,500,000 1,475,160 (21,184)
02/25/04 02/25/08 FHLMC 3.13% 1,000,000 1,000,000 981,790 (18,210)
11/21/05 06/23/08 FFCB 5.79% 1,013,977 1,000,000 1,010.950 (3,027)
01/12/04 08/06/08 FHLB callable, step coupon 4.00% 999,410 1,000,000 994,380 (5,030)
04/29/04 10/29/08 FHLB callable, step coupon 3.50% 300,000 300,000 296,157 (3,843)
12/15/03 12/15/08 FHLMC callable, step coupon 5.00% 1,000,000 1,000,000 997,400 (2,600)
12/30/03 12/30/08 FHLMC callable, step coupon 4.75% 1,000.000 1,000,000 998,320 (1.680)
03/16/04 03/16/09 FNMA callable 4.01% 1,600,000 1,600,000 1,572,000 (28,000)
03/30/04 03/30/09 FHLB callable, step coupon 4.50% 600,000 600,000 598,314 (1,686)
12/28/05 12/28/09 FHLB callable 5.04% 915,000 915,000 911,569 (3,431 )
11/30/05 04/07/10 FFCB callable 3.70% 963,568 1,000,000 967,190 3,622
11/21/05 07/12/10 . FHLMC 4.13% 981,833 1,000,000 979,690 (2,143)
12/15/05 12/15/10 FHLMC callable 5.04% 1,000,000 1,000,000 997,580 (2,420)
04/21/06 04/07/11 FNMA callable 5.75% 748,325 750,000 750,232 1,907
18,618,978 18,667,755 18,499,767 (119,211)
Total Managed Portfolio 51 740 502 51 789309 51 579 657 (}60 845)
Average Yield 4.69%
Average Length to Maturity (in years) 0.68
TRUST PORTFOLIO (KESTER TRUST)
CASH
02/28/07 Wells Institutional Money Mkt Acct 5.09% 44,844 44,844 44,844 0
Total Trust Portfolio 44.844 44.844 44 844 0
BOND RESERVE PORTFOLIO
Bond Reserve Acct Ambac Assurance Security Bond 1 1 I
Bond Payment Acct Wells Treasury Plus Money Mkt 4.64% 2,347 2,347 2,347 0
Total Bond Reserve Portfolio 2347 2347 2.347 0
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Investments by Type
Managed Portfolio
us Treasury Notes
0%
Agency Notes
36%
LAIF
51%
Cash
2%
IRate of Return Comparison I
6.00%
. : :
~~ : : : :
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5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
3/06
5/06
6/06
7/06
9/06
10/06
11/06
4/06
8/06
12/06
1/07
2/07
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COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino
February 28, 2007
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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