07. Treasurer's investment ReportADMINISTRATIVE SEA'.VICES DEPARTMENT
CITY HALL
10300 TORRE AVENUE: • CUPERTINO, CA 950143255
C O P E RT I N O (408) 777-3220 -FAX (4 08) 777-3'109
SUMM~.RY
Agenda Item No. ~ Meeting Date: November 3, 2008
SUBJECT AND ISSUE
Accept the Treasurer's Investment Report for September 2008.
BACKGROi7ND
The City Council received a special staff report on October 21, 2008 describing a
significant shift of the portfolio in October toward US Treasuries in order to increase the
security of city funds. This item is the regular monthly look back of the portfolio as of
September 30, 2008, as required by the city's investment policy and state code.
The market value and cost of the city's portfolio totaled $59.6 million at September 30,
2008. The portfolio's yield rose to 2.77% in September, compazed to 2.72% the previous
month, however it is down from 4.85% a yeaz ago. The Local Agency Investment Fund
(LAIF) yielded 2.77% for September, down from 2.78% the previous month and 5.23% a
year ago.
Four million dollars in Treasuries, a $1 million Federal Agency note, and a $98,000
certificate of deposit matured during September. The city's cash balance decreased $4.3
million from the previous month due to Mary Avenue Bicycle Footbridge and street project
outlays and two installments of sheriff contract payments.
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 September 2008.
Submitt d by: ApI>roved for submission:
G
David. Woo David W. Knapp
Deputy Treasurer City Manager
~-i
Treasurer's Investment Report
November 3, 2008
Page 2 of 2
Reviewed by:
Carol wood
City Treasurer
Attachments:
1. Investment Portfolio
2. Rate of Return Comparison and Investments by Type
3. Compliance with Investment Policy
7-2
City of Cupertino
Investment Portfolio
September 30, 2008
o Mat T -I'RZSF17'
SECURITIES MATURED
12/10/07 08/31/08 US Treasury Note 4.814% 334% ~ 2,000,000 2,000,000 2,000,000 O
OI/3 Q/OS 09/12./08 FFCB 4.50% 2.70% 1,OOQ,000 1,000,000 1,000,000 D
03!26/04 09/26/08 South Coast Community Bank 3.20% 320% 98,000 98,000 98,000 _
O
12/07/07 09/_30/08 US Treasury Note 4.63% 3.27% 1,000,000 1,000,000 1,000,000 -
O
12/10/07
09/30/08
US Treasury NOte
4.63%
~ 3.29%
1,000,000 _
1,000,000
1,000,000 _
_
O
SECURITIES PURCHASED
09/23/08 09/23/09 FFCB 2.70% 2.57% - 1,001,226 1,000,000 995,630 (5,596)
CI'T'Y PORTFOLIO
CASH __
_ 09!30/08 Wells Fargo -Workers Comp Checking t5,1 16 15,116 15,1 16 O
09/30/08 Wells Fargo -Regular Checking ~ 862,322 862,322 862,322 O
09/30/08 Wells Fargo -Investment Sweep 0.38% 0.38% 104,576 104,576 104,576 _
O
982,014 982,014 982,014 O
I_AIF _
09/30/08 LAIF -State Pool 2.7'7 % 2.77 % 18,571,440 18,571,440 18,571,440 O
CERTIFICATES OF DEPOSIT - -
07/17/08 10/16/08 SpiritB ank, Bristow OK 4.873% 4.8810 _ 98,032 98,032 98,032 0
11/23/07 11/20/08 Arizona Bank &c Trust, Chandler AZ 4.88% 4.88% 10,108 10,108 10,108 O
_ 11/23/07- t 1!20/08 Banktrust, Santa Rosa Beach FL 4.88% 4.88% 94,000 94,000 94,000 O
1 123/07
_
11/20/08
- Yadkin Valley Bank Rc Trust Co, Elkin
NC formerly Cardinal State Bank,
Durham NC due to merger
4.88%
4.88%
94,000
94,000
94,000
O
1123/07 1720/08 Coionial Bank NA, Montgomery AL 4.88% 4.88% 94,000 94,000 94,000 - O
1123/07 l 120/08 Covenant Bank, Clarksdale MS 4.873% 4.88% 94,000 94,D00 94,000 O
1123/07 1120/08 Four Oaks Bank 8c Trust, Four Oaks NC 4.87;% 4.88% 94,000 94,000 94,000 O
1123/07 1120/08 Johnson Bank, Racine WI 4.8R% 4.88% 94,000 94,000 94,000 O
1123/07 1120/08 Midwest Bank Western Ill., Monmouth II 4,88^/° 4.88% _
- 94,000 _
94,000 94,000 O
1123/07 l 120/08 Solutions Bank, Medicine Lodge KS 4,873% 4.88% _
- 48,892 __
~ 48,892 48,892 O _
1 123/07 1120/08 Brand Banking Co, Lawrenceville GA 4.873% 4.88% 94,000 94,000 94,000 O
1 123/07 1120/08 Vision Bank, Panama City FL 4.873% _ 4.88% 94,000 94,000 _
94,000 O
03/17/04 03/17/09 Peoples State Bank - __ 3.40% 3.40% 99,000 99,000 98,417 (583)
0324/04 0324/09 Washita State Bank, Burns Flat OK - 33:i% 335 % 99,000 99,000 98,375 - (625)
12/30/08 12/30/09 Meridian Bank NA, Wickenburg AZ 4.80% 4.80% 99,000 99,000 99,039 39
1228/05 1228/1 O Nafl Bank of New York City, NY 4.917 % 4.90% 97,000 97,000 96,588 (412)
_ Y,397,032 1,397,032 1,395,451 (1,581)
MONEY MARKET FUNDS -
09l30/08 Wells Fargo Government 2.17% 2.17% 3,326,374 3,326,374 3,326,374 O
09/30/08 Weils Fargo 100% Treasury 1.14 % 1.14% 100,000 I OQO00 100,000 O
3,426,374 3,426,374 3,426,374 O
7-3
City of Cupertino
Investment Portfolio
September 30, 2008
o Mature ~PALO>~- ~U>~ ~R~FIT
AGENCY NOTES
0128/08 30/01/08 FFCB discount note 2.68% 2.77% _ 999,926 _I ,000,000 1,000,000 74
07/30/08 1023/08 FEILB discount note ~ 2.40% 2.41 % 7,996,933 2,000,000 1,999,400 2,467
07/30/08 12/19/08 FHLB discount note 2.50% 2.52% 994,445 1,000,000 994,500 55
0626/08 0626/09 FHLB callable 3.13% 3.13% 1,000,000 1,000,000 999,380 (620)
___
0122/08 08/03/09 FFCB - 5.25% 2.55% 1,022,072 1,000,000 1,017,190 (4,882)
_
/08
0923 0923/09 FFCB 2.70% 2.57% 1,00[,226 1,000,000 995,630 (5,596)
_
06/30/08 12/30/09 FHLB callable 3.25% 3.25 % ~ 1,000,000 1,000,000 1,000,000 O
0528/08 0226/10 FHLB callable 3.00
% 3.00% 1,000,000 1,000,000 996,250 (3,750)
0625/08 05/07/10 FFCB __ _
_
_4.75% 3._38% 1,021,045 [,000,000 1,022,500 1,455
0520/08 0520/10 _
FFCB callable _
3.34% 3.34% 1,000,000 1,000,000 999,060 (940)
05/07/08 -06/11/10 F13LB 3.0_0% 2.98% _ 1,000,340 1,000,000 995,630 (4,710)
06/18/08 _
06/18/10 ___
FHLB callable _ ___
3.35% 3.35% 1,000,000 __ S,000,OOO 996,560 ____ (3,440_)
0728/08 0728/10 FFCB callable 3.30% 3.30% 1,000,000 1,000,000 998,750 _ (1,250)
08/18/08 08/18/10 FFCB callable 3.57% 3.57% 1,000,000 I,OOQ000 1,001,250 1,250
0527/08 0827/10 FHLB callable 3.30% 3.30% 1,000,000 1,000,000 998,440 (1,560)
__
11/19/07 __
11/19/10 FFCB callable 4.63% 4.63% 1,000,000 1,000,000 1,002,190 2,790
_
05/19/08 _
11/19/10 FHLB callable 3.15% 3.75% [,000,000 1,000,000 995,000 (5,000)
0528/08 0228/11 FHLB callable 3.40% 3.40% 1,000,000 ],000,000 997,190 (2,830)
19,035,986 19,000,000 19,008,920 (27,066)
'US TREASURY SECURITIES
12/07/07 - 10/31/08 US Treasury Note 4.88% 3.27% 1,001,310 1,000,000 1,003,280 1,970
12/10/07 10/31/08 US Treasury Note 4.88°/ 3.25% 1,001,337 _ 1,000,000 1,003,280 1,943
12/07/07 I 1/IS/OS US Treasury Note 4.38% 3.31% 1,001,295 1,000,000 L,004,220 2,925
12/10/07 71/15/08 _
US Treasury Note ~ 4.38% 3.27% 1,001,349 1,000,000 1,004,220 2,871
12/10/07 12/31/
0
8 US Treasury Note 4.75% 3.18% 2,007,652 2,000,000_ _ 2,018,600 10,948
___
1220/07 _
_
01/31/09 US Treasury Note 4.88% 3:06% 1,005,935 _ 1,000,000 ___1,012,660 6,725
02/19/08 02/15/09 US Treasury Note 3.00% 1.77% 1,004,586 __ 1,000,000 1,005,780 1,194
03/10/08 03/31/09 US Treasury No[e _
4.50% __1.44% _1,015,103 _1,000,000 1,015,080 (23)
03/12/08 4/30/09
0 ___
US Treasury Note _
_
4.50% L_51% 1,017,123 1,000,000 1,016,170 (953)
07/17/08 _
05/15/09 _
US Treasury Note ___ 3.68% 2.06% 1,011,157 1,000,000 1,013,360 2,203 _
0724/08 OS/75/09 _ _
US Treasury Note 3.88% 2.30% ___1,009,619 1,000;000 1,013,360 3,741
08/27/08 06/30/09 US Treasury Note 4.88% 2.09% 2,041,128 2,000,000_ __ 2,045,160 4,032
0828/08 07/31/09 US Treasury Note 4.63 % 2.13% 2,040,875 2,000,000 2,045,460 4,585
76,158,470 16,000,000 ]6,200,630 42,160
Total Managed Portfo
t
i
o _ 59 571 16 59 76 860 59 584 29 13 513
_
_
_
Average Yield ~ 2.77%
Average Lcngth to Maturity (io yesrs) 0.54 __ _.
7-4
City of Cupertino
Investment Portfolio
September 30, 2008
~ATI : o Mat~ai
TRUST PORTFOLIO (KESTER TRUST) _
CASH _
09/30/08 Wells Institutional Money Mkt Acct 1.I:3% 1.83 ~° 47,860 47,860 47,860 O
Totsi Trust Portfolio ~ 47 860 47,860 47 60 O
BOND RESERVE PORTFOLTO
Bond Reserve Acct Ambac Assurance Security Bond 1 ~ 1
J 1
Bond Paymcnt Acct Wells Treasury Plus Money Mkt 1.3~!% 1.31% 939 939 939 O
Total Bond Reserve Portfolio ~ - 939 939 939 0
7-5
Investments by 'I~pe =
Managed Portfolio
US Tt~aswies CIF.
2T/. 37%
Cash
2%
Mottry
MnrkU
CDh 6%
Agency Notes 2%
32%
Rate of Return Com arison
5.50%
5.00%
4.50%
4_DO%
3.50%
3.00%
250%
~~'~ '`~~p'1 ~_`p'~ ^~ .cam ^3V P~ H ~ ',~~ 4TH pJ
-~WF
-a-Cupertino
7-6
COMPLIANCE WITH INVESTMENT POLICY
City of Cupertino __ _____
----.--
September 30, 2008
Categor Standard Comment
Treasury Issues No limit Complies
US Agencies
_ -- -- .. _. No limit
- _ _ _
-- Complies
Medium Term Corporate Bonds
-- - - ---- --- --- ---
o
30 /o with A i a_ti_ng
----- _ _
Complies
LAIF __-
$40 million p . --
Com hes
Money Market Funds 20% Complies
Maximum Maturities Up to 5 years Complies
Per Issuer Max 10% (except for Treasuries and US Agencies) ~ CompLes
Bankers Acceptances 180 days 8c 4~0% Complies
Commercial Paper
Negotiable Certificates of Deposit 270 days 8r, c:5%
___ _ _
30% Complies
__ p _...~.. __.
Com ties
Repurchase Agreements _ 365 days Complies
Reverse Repurchase agreements Prohibited Complies
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