06. Treasurer's Report
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City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3220
FAX: (408) 777-3366
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CUPEIUINO
DEPARTMENf OF ADMINISTRATIVE SERVICES
SUMMARY
Agenda Item No.
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Meeting Date: October 2, 2007
SUBJECT AND ISSUE
Accept the Treasurert s Investment and Budget Report for August 2007, including a status report
on General Fund Revenue and Expenditures.
BACKGROUND
Enclosed is the Treasurer's Investment and Budget Report for the month ended August 31, 2007.
INVESTMENTS
The market value of the City's portfolio totaled $56.5 million at the end of August, with a cost of
$56.6 million. The difference, an unrealized paper loss, improved by $42,000 from last month.
The portfolio yielded 4.92% in August up from 4.89% the previous month and up from 4.47% a
\..- year ago. The Local Agency Investment Fund (LAIF) yielded 5.25% for the same time period,
down from 5.26% for the previous month, but up from 4.95% a year ago.
A certificate of deposit matured at 4.6%. The Citis cash & investment balance decreased by
$1.7 million due to two Sheriff contract payments and one quarterly sales tax disbursement.
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.
GENERAL FUND REVENUES AND EXPENDITURES
After the first two months of the new fiscal year, overall revenues are down 22% from last year
driven by declines in building permits, planning and engineering fees, construction taxes, sales
taxes, and state mandated cost reimbursements. Transient occupancy taxes, utility user taxes, and
interest earnings are up. After the first three months in the previous year, revenues were down
only 4% from the year before. Staff will continue to monitor and report as revenues come in.
Total expenditures through July and August of2007 are up only 1 % over last year.
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Printed on Recycled P/JPfIf
Treasurer's Investment and Budget Report
October 2, 2007
Page 2 of2
RECOMMENDATION
Accept the Treasurer's Investment and Budget Report for August. 2007 .
Submitted by:
Approved for submission:
David Woo
Deputy Treasurer
~flIuJ1)~-bn
Davi W. Knapp tJ~ I
City Manager
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City of Cupertino
August 31,2007
I\~ JI Y II 'J UATt: MJ\IUKII Y .~.
MJ\IUKII Y DESCRlP"IION -~_...... RATE COSl VALUE -.--- VALUb
.......... . -- ..---....-.- ..-..... ----- ------- --
- SECURITIES MATURED/CALLED
.--
02103/06 08/03/07 Business Bank of Fox River 4.60% 99.000 99,000 99,000 0
..---
_.......- _. .-
SECURITIES PURCHASED
CITY PORTFOLIO
CASH _..
-- --- -
08131/07 Wells Fargo. Workers Comp Checking 13,553 13,553 13,553 0
-- ---
08131/07 Wells Fargo - ~~gular Checking 788,647 788,647 788,647 0
-----_.-- -._........~_._.
----_........ -.--...-.....-. .- ..._---_.-~._--- 802,200 802,200 802,200 0
--
LAIF
on _._ .... - ---"-.--
--....... ... ....... ........ 08131/07 LAlF . State Pool 5.25% 32,888,806 32,888,806 32,888,806 0
....---..--- ----.-........ ...-...... ---
-. ---..----
CERTIFICATES OF DEPOSIT
.-- .
_. .m_.._p.......__. -0.-.'.-_.. -..
03/24/04 O9/2~L ~~.~!~~ank 2,70"!oI 99,000 99,000 98,772 (228)
--
03/28/06 09/28/07 Venture Bank 5,OO"!oI 97,000 97,000 96,887 (113)
--
04/05/06 10/05/07 Mcrcll1ltile Bll1lk of Michigan 5,00% 97,000 97,000 96,869 (131)
02/03/06 02/04/08 PrimeSouth Bank 4,65% 97,000 97,000 96,412 (588)
-.
02/10/06 02111108 Florida Community Bank 4.75% 99.000 99,000 98,414 (58~2
--
03/17/04 03/17/08 American Trust Fed Savings Bll1lk 3.00% 99,000 99,000 97,500 (1,500)
-
03119104 03119/08 Planters First Cordcle GA 3,05% 98,000 98.000 96,521 (1,479)
03/24/04 03/24/08 ~~ State Bank 3.00% 99,000 99,000 97,449 (1,551)
---- --..-....----
03/24/04 03/24/08 Wilmot State Bank 3.00% 99,000 99.000 97.449 (1,5~.12
.n... .. ~_.'" ...... -...- -
03/26/04 03/26/08 Private Bank & Trust 3.20"!oI _._~~,OOO 99,000 97,522 (1,478)
...... . ~.'
03/30/06 03/28108 ~.i_~.t<:Jeo~$~a. .Banking ConI~~y 5.05% 99.000 _~~~OO 98!622 (378)
.- ~. ~/oi/~_l:_.:_~~?/~8.
Cole Taylor Bank, st~p.E.Oupon 3.01% 97,000 97,000 .95,378 (1,622)
... -.. ..--..- "(2.i6J)
03126/04 09126108 South Coast CO'!l_~unity Bank 3.20% 98,000 98,000 95,139
. . ---. -.
03117/04 03117/09 Peoples State Bank 3.40% 99,000 99,000 95,150 (3.85Ol
--
03/24/04 0312.~ Washita State Bank 3.35% 99,000 99,000 95,053 (3,947)
-
12130/05 12/30/09 Meridian Bank 4.80"!oI 99,000 99,000 96,669 (2,331)
12/28/05 12/28/10 Nat'1 Bank of New York City 4,90% 97,000 . 97,000 94,131 (2,869)
1,671,000 1,671,000 1,643,937 (27.~)
MONEY MARKET FUNDS
-. -
08/31/07 Wells Fargo Government 5.22% 3,079,340 3,079.340 3,079,340
-----
3,079,340 3,079,340 . 3,079,340 0
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City of Cupertino
August 31,2007
^~IIVJJ I DATE
I y .,Ivn KAlti COST VALUE VALUE
AGENCY NOTES
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04118105 I 0118107 FHLB adjustable rate 4.60% 1,500,000 1,500,000 1,499,340 (660)
.._- -. -
04/14/04 12/03107 FNMA callable 2,50% 999,073 1,000,000 993,130 (5,943)
.-----.".-.-..-- ...--- ----.-
12/13/05 12/28107 FFCB 4.75% 1,000,157 1,000,000 998,440 (1,717)
-'-. .- .--._....._...._~- ~~_.
04/23/04 01/23/08 FHLB callable 3,15% 1,498,389 1,500,000 1,487,820 (10,569)
-
02/25/04 02/25108 FHLMC 3.13% 1,000,000 1,000,000 989,900 (10,100)
____ ~'~_~_"'_'__"" r.____
11/21/05 06123/08 FFCB 5.79% 1,008,630 1.000,000 1,005,690 (2,940~
.... -..-.....--------
01/12/04 08/06/08 FHLB callable, step ~"p'on 5,00% 999,617 1,000,000 999,060 (557)
.....
04/29104 10/29108 FHLB callable, step coupon 4.00% 300,000 300,000 298,125 (1,875)
........_ u____
12/15/03 12/15/08 FHLMC callable, step coupon 5.00% 1,000,000 1,000,000 1,000,040 40
-.---.......... -..
12130/03 12130108 FHLMC callable. step coupon 4.75% 1,000,000 1,000.000 998,080 (1.920)
03/16/04 03/16/09 FNMA callable 4.01% 1.600,000 1,600,000 1,580,496 (19,5~1
03130/04 03130109 FHLB callable, step coupon 5.00% 600,000 600,000 _.59~,814 (186)
12/28/05 12/28109 FHLB callable 5.04% 915,000 915.000 914,716 (284)
..
11130105 04/07/10 FFCB callable 3.70% 969,480 1,000.000 974,690 5.210
6______ -
11/21/05 07/12/10 FHLMC 4.13% 984,551 1,000,000 984,060 (491)
_....~._-_.- 5.04%
12/15/05 12/15/10 FHLMC callable ._.~ 1,000,000 1,000,000 1,001,240 1,240
.-.-....... .---......
04/21/06 04107111 FNMA callable 5.75% __....?~.~30 __.____. ..J1~,OOO 750,705 ___...._.3~~.z~u
-_......~.......... .. .w..._ --- ..~_.
__..__.___.~.. MUO --" ----.
-...-.-......----- ---..-.- - ---_......-. ._.!?~~,~.!.4.~_ ._._-.!7..!.~65,OOO 17,075,346 __t4.!l~J
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US GOVERNMENT SECURmES
03/28107 09/27/07 US TiCasulV Bill 5.03% 996,400 1,000.000 997,490 1.090
'96,400 1,000,000 997,490 1,090
Total Managed Portfolio IIU. at.: 1 1"" .1 Iftl ....6 56-"7.119 (74 053\
A ver.ge Yield 4,92%
~~er:~!.e~eDgt." to Maturity (in yean) 0.18
--
---.-..----..
.,.--.--- ----.-.---..... JR~T POR1;FOLIO (KESTER 1]!UST)
CASH
- ----
08/31/07 Wells Institutional Mo~..~kt Acot 5,02% ~5,981 __~..981 45,981 0
---... . . .....- --'-'-
.. ..;.., .HU"'_'__ ._ -..-...-- - . ._~......-...---
Total Trult Portfolio 45.981 45.981 45.981 0
'..".'00_.._.._ _no_.. .......... . ..._. ....__n_........_._. ...-.-.---
.. ..
_.__..__u -- -_.:...-.- 1--_. -
--. BOND RESERVE PORTFOLIO .
Bond Reserve Acct Ambac Assurance Security Bond I 1 1
~ond Payment Acct Wells TreIL'Iury PillS Money MItt 3.85% 4,516 4,516 4,516 0
Total Bond Reserve Portfolio 4.51' 4.516 4.516 0
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Investments by Type
Managed Portfolio
USTlWII1Iria
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IRate of Return Comparisonl.
5.40%
5.00%
5.20%
4.80%
4.60%
4.4O'lft
4.20%
4.00%
~ 1~ 1~ ~ ~ ~ ~ ~ ~ ~ ~ ~
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COMPLIANCE WITH INVESTMENT POLICY
.. _.... ._.._._....._. .___.__._._....._........u........ ........._.._....._..._
City C!~<;~p.er.~no u...._.._..__.____.___nu.u.. ...... ..._._......_uu........_..
August ~~L~9~L.... ... u .. ...._. ...... __L...... .u'.'... ...... ...... ...u...__
." .......n....... .......
.__.n___......... . .....~.~tegory
Standard
Comment
!re~urx}.~~'1.~~m ___.___.__~ No limit _'_'_". . ... ......._.......__..._.__... ~~~p.!~~.._...u..
US Agencies No limit Complies
'Medi~'T~~ Coq;Qrate Bonds i30% with A ~ti~g'-- --..... ....... ......... C~~pli~--
LAIF .. ... ..... ... . .u..... ....... .;$40. mi.~l~O'I!_...._._.._:~_ __ ..~.~::.. .:~.'''. --..._.~.:. ...... ...... ... ... .-l<;.o.rnl'li.~~
Money MarketFun.~s .. ....... ............__..~~.Q~_..... ._......... ........... ._...__..__.__.__...__.u.u...._....._.. [Complies
l\.1~ximu~ ~aturities u......_. __... ___;.~.P...~o._~..)'car.s. ... ...... ..... ...._ ~plies
Per Issuer Max i 10% (except for Tre&$Urles and US Agencies) l.~~pl~~.
B.~~~i~~~1!~_<?~s. .. ... .....~.~:.~..=~_-.~.1 I~9. ..~r..~ .~~40% .. ... .., ,. .. ..._:~.::::::~~~.: :.:~'~~~-'~-==~..~:~':_ ~~~p~!~__~::.~..
q~~~~!al Paper ..._........___..u._.._.__._. ~?~..~l~ & 25% ._.............._..._........._..... .~~mplies
l'-l.c:.~~~.~~~.~_~~rtitica~~.o.~r.?e.P~si.t....... .~~~ Complies
Repurchlls~.~~~ements ._.._u__ 365 days .... Complies
Reverse Repurchase agreements Prohibited Complies
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City of Cupertino ...-...
General Fund Budget Report -
AU2Ust 31,2007 ,
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I Budlet . Actual
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Prior Year Amended
2006107 2007108 I 8/3112006 8/3112007 Analysis of Trends
Taxes: I
Sales Tax 11,575,000 12,870,0001 1,449,216 1,225,222 Insight still to come
ProDCrtY Tax 6,290,000 6,510,000 21,171 21,073
Transient Occupancy , 2;363,000 2,550,000 236,735 274,666
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Utility Tax 2,392,000 2.100,000 235,629 261.610
Franchise Fees 2,500,000 2,580,000 44,538 63,930 ;
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Other Taxes 2,308,000 1,770,000 I 434,104 193,430 Construction tax down
Licenses and Permits 3,050 000 3,172,000 554 204 401,190 Decrease in ocnnit revenue
Use ofMone}' & Property 1.380 000 1,483,000 297 939 348,506
Intergovemmental 4,706,114 4,732,542 243,300 30,749 sa 90 reimbursements last year
Charges for Services 1,482,000 2,066,000 270,540 116,343 Planning & Engineering fees down
Fines & Forfeitures 680,000 690,000 13,363 11,036
Other Revenue 140,000 . 116,200 7,567 30,933
Sale of PronertY I 1,600.000
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Total Revenue I An A~~ ~ 1.4 1. llnll 1.M Down 22%
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Exoenditures: I
Administrative I 1.362,195 1,489,019 182 609 186,676 .
Law Enforcement .1 7,177,378 7,865,455 1 149,801 1,270,083
Community Service I 917,644 1,253,677 132,074 162,737
Administrative Service ! 4,978,400 4,402,142 874 103 644,646
Recreation Service 2,428,298 3,913,113 689,845 573,627
Community Develooment 3,885,441 3,868,120 384,409 434,290
Public Works 9.845.280 11.025.538 ! 1.246,144 1,447.406
Total EXDenditures ':In orOA ~':I~ 111117 n6.4 A~orllOllO; A ....n A"~ Uol%
Transfers In 1,459,974 1.230,000 166,666 307.500
Transfers Out -7.026,296 -15,648,000 -1,535,832 -3,912,000
Net GainI(Loss) .41M lo;~ _7 "iQ"i 1" .? . -S..14:Ll;