Loading...
07. Treasurer's Report .·.~I /¡~f City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 Telephone: (408) 777-3220 FAX: (408) 777-3366 I F CUPEIQ1NO DEPARTMENT OF ADMINISTRATIVE SERVICES SUMMARY Agenda Item No. 'I Meeting Date: November 15, 2005 SUBJECT Accept the Treasurer's Investment and Budget Report for September 2005. BACKGROUND Attached is the Treasurer's Investment and Budget report for the period ended September 30,2005. The report includes all funds in control of the City. Investments The market value of the City's current portfolio totaled $37.9 million at September 30, 2005, with a maturity or face value of $38.3 million. The market value ofthe portfolio is lower than their maturity value because as interest rates have risen, older securities in the portfolio with low fixed interest rates are valued at a lower price in the market. This difference between market and maturity value is an unrealized paper loss at this specific date. At maturity however, market and maturity value is the same and the City intends to hold these investments until maturity and redeem their full value. The Local Agency Investment Fund (LAIF) yielded 3.324% in September compared to 3.179% in the previous month and 1.771% a year ago. The City's portfolio as a whole yielded 3.10% in September up ITom 3.07% the previous month and 2.46% a year ago. As the Fed continues to increase the federal funds rate, short-term interest rates have continued to move upward. with the difference between short and long-term rates becoming more and more tight. Staff has been monitoring the market, establishing a cash flow model and investment strategy, and is ready to take advantage of the higher yields. The City's cash and investment holdings decreased $197,000 during September. Property tax collections and the sale of the Oak Valley lots should improve the cash position during the last two months of the year and will cover the anticipated disbursements for phase one of the Mary Avenue bridge project. The investments of the City of Cupertino are in full compliance with our City investment policy and/or State law, and are tiered to provide the City with sufficient cash flows to pay its obligations over the next six months. Printed on Recycled Paper 7-1 Revenue/Expenditure Trends Because of increased building activity and implementation of cost recovery rates, permit, planning, and engineering fees continue to drive the revenue story. Licenses and permits are at $1.2 million through the first quarter of fiscal 2005-06 compared to $0.6 million a year ago. Related charges for services are more than double ftom last year, accumulating $0.7 million for the first three months of the fiscal year compared to $0.3 million a year ago. Improvement in the business-to-business sector, led by robust performance in the office and electronic equipment sector and gains in the food products area, has put sales taxes at $2.6 million for the quarter, compared to $2.2 million for the quarter a year ago. However, declines in the general retail and transportation sectors, led by lower department store results and the loss of the car dealership have tempered the increase. The City's sales tax base is becoming more and more concentrated in the more volatile business-to-business sector, with this sector comprising 54% of tax revenues on an annual basis, up ITom 46% a year ago. General retail has gone ITom 30% a year ago down to 25%. Overall General Fund revenues for the quarter are at $6.5 million. This is a 24% increase over the $5.2 million ITom a year ago. General Fund expenditures of $6.7 million for July through September 2005 represent a 13 % increase over last year. The new sheriff substation, election costs, building plan reviews, the new library and community hall, and higher PERS costs are major contributors to the increase. New charts are enclosed to track key revenues of the current year. The cumulative performance of building and planning fees along with sales, property and transient occupancy taxes are charted on a projected (dotted line) and actual (solid line) basis. General Fund expenditures versus budget are also tracked. The charts show that building revenues are far exceeding the pace of last year, however, there may be a falloff ITom this pace in the upcoming months. Sales taxes had a strong September, exceeding the pace of last year. Transient occupancy taxes have consistently surpassed the prior year. Only small amounts of property taxes have been received so far, so it's too hard to tell as of yet how that revenue will develop. Thanks to tight controls and departmental savings, General Fund expenditures have consistently been under budget for the year. RECOMMENDA nON: Accept the Treasurer's Investment and Budget report for September 2005. Submitted by: ,0~ I..." David Woo Deputy Treasurer Approved for submission: ~~ City Manager 1-2.... City of Cupertino September 30, 2005 ACTIVITY DATE PURCHASE MATURITY DESC-RÍPTioN REF YIEW ADJUSTED COST MATURITY VALUE MARKET UNREALIZE -YALUE-- PRÖFIlïWSS +----=f.. .... i_ ---- ._.__..~---- ...: -------- ------...,'. _____ _om - - .------ ------- SECURITIES ÏvlA TURED/CALLED __ _".~'n ----- 0'--- _." ¡ CURRENT PORTFOLIO ..L__ , --- ì~=-- -- f ----+----- - - I _ ________ :[ - --==" 09/30/05 Wells Fargo Cash 244 ----244+----·· 244! ----0 09/30/05 Wells Farjo~UWorkers Comp Ch.~king 29,345 29,345 ------29]45---- 0 CA -+-_ .n~~__09/30/= Wells Fargo· Regular ChOCk,=t=F_-+- ;:::;~~ ..~. ~:::;~~j- -mI:t;~{p=- ~ DC ::w¡}:~r ~eoo'~ u~~ '''' --,,,,...~;,,¡.~; ~"..~! · 03/24/041 03/24/08 Badger State Bank 9 300% '99.000"" 99.000 ... 95'184~' (3.816) ___ __, __+-__ ____ [£_ - __ _____________" _____ __ _____.... ._,__'..._n_ L 04/07/04 1 04/07~~8 Col~Tayl~Bank~ep 9 _~~% ~7,OO~~ __9?800 ______.94,?~8_ ______j~,4. ?~) 03/17/04 03/17/09 'Peoples State Bank 9 340%' 99.000 T 99.000 ¡ 94.809 . (4.191) :1 ~S; j:¡:¡ ¡;¡:;iE::i~~ f!-~¡f - ~S .. ::::1 -= - E~ !:~ ._........·....r/;~~;~:_~~;;~;~~.~:~~:~~?~ä::trYBank. . ~·t--;;~~ - :~:~~~~ ·:t.~з· :~::{H ~::~~:\ ~M I u----~t--------L--.:-. ...~.. '=_ ' 780.106¡ 780,106t~ _..::. 780,106r_ 0 _ AGENCYNUrES _ '. I 07/~4/15/07 FHLMC(P) :2 6.81% 74.020 108.741 I 65,789~---(8,231) - -037~~~~~j_ß/26/06 FHLMCQ - --- u·2---t-- 2300/,- 793,454 800.000 780.336 i - jlj,IlBj -- -07/21/03 07/21706 FHLB©-- --- . nm_ 2 . 2.20% 500.000 - --500.000 -- -491.720 (8.28(j) (12.270) --------- I 08/07/03 08/07/06 FHLBQ,step _______._.2_ __ 2.33%.. 500000 500.000 e-- _ 493.440, (6.560) ~- - ~~;~:~~ ~~~:;~; ~:~:~ =-=_____+ ¡___}~~' ~:~~~:~~~ ~:~~*~~ .=-_ 2.~~~:~~~ g~:~:~~ 'WW, -,,;oj., ~"^.~ -1 ~"-' -'poo:.oo ,-,~, - - -,,,,,,,; --","" 03/16/04 03/16/09 FNMA 2 401% 1.600.000 ' 1.600.000 _ 1.570.000 i30.000) ------;--03/23/04 01/30/09 jFiiMNO--·-· - 2 250% - 500.000 500.000 ----¡97,030 (2.970) 04/14/04 12/03/07 FNMAQ .2. 250% 992.173 1.000.000 960,630 ' (31,543) - u· 12115/03 12115/08 FNMAQ"ïep - '2 3000/, 1.000.000 1.000,000 ~ 990.190 I -- (9.810) 03/30/04 03/30/09 FHLBQ.steÎ'-- Z ~--2 50% - 600.000 ,- 600.000 - 595.87n- --(4,]22) - -linzi03'-06/22I07-TrniÙ---·· -- 2 ' -330% ---1.000.00~-~000.ÕOO -----g75ß30 - (24.370) -__12/30/03 r::-,:ifjÓ/08 'FHLMCQ.stq, n=___ -=- ~ 2. ~-T75%~ ___1.000,000 I -1~ÕÖO.00o.+_-----~9910.o.j_ __ - - (3.0.0) 04/29/~ _--'0/29/08 FHLBQ.ste¡> . ____-----2_. _._. 3.00%1- 300.000 _ 300.000. ___29~.625 .(6,375) n [i-------- ...-¡;EiCURITIES PURCHASED -----T------ , .-.-.---+-------- 'CASH ------------- . ---------- --- ~7-] City of Cupertino September 30, 2005 "-j--=--==~- ---- _ _L ----~_._._....._- ----- ________H ------+------ ACTIVITY DATE 'PURCHASE MATURITY DESCRIPTION . REF --V¡äõ ADJUSTED COST MATURITY VALUE MARKET VALUE UNREALIZE PROFIT/LOSS ..l=-:=F===-----:= -, - --t-== 1- --=--=- , -- -- -- " :=C :=~ i~~-=~ ~I ::¡~;~;.:t ,:,:or ':=l--:..~.~:~~~; MOUS ::~::JME~::::::::~ Floalcr__~ ___ 2_ _=3~7%r_--i:~~:~~~ ~~~~~~:~~-=--1},~~:~:+ -(3{t~~~; :;: =""1=""'''''' !,=...",",-=:--:-I,J= ''''';:;2.;1 :::;::--:: ::::: :;;: TOla.1 Managedpö,ii'ojfO¡-- U. -!4---. 1. 38.19.!~_38,276.194 I 37,852.370 (346,968) _IAve!~geYield ______.__ ___ 3.10% _' _ _ ___~g~ Length to Matu'ily.. (in yem) --- -' -~- --=t=- ____ ----~ =t==~=----=- -r I ----=t--= :=-¡- -1-- --:J:~~,~k~,"J:.. ~ ,:~~ro""=--~J~.= ~J~- -~ E~=~=r~ -""'ro'¡:._~ ,..~,...., ¡ I-,."~ ._ ,"roþ''''' ..="., '..:...::: .' n':'"·~":'···· -= - .. €[ -_' _ ,,,., _ ,,,., _ ,""' j t ~RESERVEPORTFOLIO,. +-__ E----,----- ... '________ ~_I~~~: ~::~i.i:-:~;~~il.::~:::~~T.,.::.é~:~:Y~.~~i:ê::t. ..-' _293ft. 1I2J9~'¡:~I.09~ !~=!I.09ff:--:::: 0 --!~~~~~:::::~--~~':lf"",j~~ ~: - .;~ : +-~ L - ~If _ L==t=--=-t~ o 7-~ Rate of Return Comparison 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 5104 6104 7/04 8104 9/04 10/04 11/04 12104 1105 2105 3105 4/05 5/05 6/05 7105 8/05 9/05 Investments by Type Managed Portfolio us Treasu¡yNolCS 3% 7-) COMPLIANCE WITH INVESTMENT POLICY City of Cupertino September 30, 2005 Category Treasury Issues US Agencies (eg FHLMC) 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 Standard No limit No limit .30% with A rating $40 million 20% 25% up to 15 years Remainder 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 Complies Comment 7-{, City of Cupertino t C;~eral Fu~d Budg;t Report +- ~epte~ber30, ioosT -=--- -----,- - I -', Budget Actual ---- ._ : 2004/05 I 2005/06 0/2004 I 9/30/2005 - Taxes: i= ' ' -Sales Tax ---- - 8,400,000' 9)50,001 i,192,428t-~3,343- --. ----- -_.---------- --~ - ~rtyTax . ----í-- 3,748.000_ 4,157,0º, _7,780 _ 39,247, MostP~rec'dNov-Jan&Apr-June J,ltili.tyTax _ _ 2,']40,000: 2,675,00, 417,357 474.884 FrnnchiseFees_.___.- ! _.~~2,QQQj......oo· .... _. 2..,300.0_º, . 103,2*4..' _-_ 10.9,028 .. _.. - - _-... . - --.' -.-= Other Taxes___ .. _1,435'88'?-1--_ 1,550,0_0' _ 335,757 _~56,382,j__ _ -- - - Licenses and. p."nm.·.Œ ~.. .1,600,00.0'_. 2,800. ,00' __63.2.531 . __ 1,184.3.6..U--+Re. .1 ReflecŒ costre.coveryrat.es. for building penm.·Œ. andplan checks Useof!\10uey&Property_, ----.l,186~900i 1,075,Oº, ---.274,322'_ 249'~~~~--k_ ___ __ - . lutergovernmental __ _ . . _ .. 2.820,687_ 3,052.00' _ 526,2~_147,639! ,ProP".rt)' taxes iu.January an~ May wil!replace the VLF,:eduction __ Charges forServlces _ ~_ 490,000,-- 1.285,00' __ 2~ 1 ----.'735.068! -1 ReflecŒ cost recovery ~r engmeenng, zorung & p1anmng_ fees Fines & Forfeitures , 600,000; 650,001 52,206 57,71.!Ll. OtherReven,;e'::-==-~T62.000=--1l6.2{)i - -~- 66,3931 ¡Recognize donatIon reve;,uefor aquanum and Golde;fubilee - Sale of Property _ _ 1,500,00.0 I. ,500,00' 0 ~ ~~alley 10Œ soldm November2005__._ _ ~~~en~"-_-+- 28 ~54 S-8732040 20 5 2:S-S-i __ 6 477 7:~ __ _ _ __ _ _ __ Operating Expenditures: j j t ~~~~:-.e:t. - ,--W~j:~;t-~~:.~:~:;;~I..l~_l';~~:~~~.· - 1,~:~~~.t~1PERS cosŒ.and new SUb~tion _ ._--____ m== _CommuniI}' Service _ ---L-__ 718,355. _839,4451+----,-180,863 ---.!2±,64~____ -- -- - - - --- ~dtnit1istrative.service . 1_~,191 ,024l _----±A18.85~-I- _ ---.1.!!~.62~ 1,295,107,_ ,Increase due to election cos~_ __ Recreation Service_ __ I _ _ 2,261,2!9! 2,428,787,! _ 497.514! 565~466" ~- . -cr-- . ·~~------,-;¡<;,r-- .. ----- ------ . .. _ CommunilIDevelopment ' 2,823,865' 3,392,839' _551~_~"7~.J62 Construction plan che"kup $130K .__ _ ._ __ Public Works 9,367,424 9,779.299 1.777,842! 2,065,938! Costs.uP due to the new library/community hall and neighborhood parks Total E."penditures 27 580 63L-29173 686 5941 162~ _ 672719°1 '_~- - --- -- --- Operatittß. TransferSln:=r= 2,737,365 I' _ .. _._ I ,600,00~ti ~4,3*- 400,002 ~.. ------= Operating Transfers Out -4,864,¡¡¡¡O¡- -5,118.000 -1,215.999 -1,279.500' ' --, ,!1--- -. .---- . -- .-- ._~- -- ;t--t---- jo,[etlncome/Loss_+-----=l..152685[__ lA -I 241 467~1 12890'!,1 __L --f--- -,-- " sis of Trends Anal .- --.J I -.J Sales Tax Fiscal Year-To-Oate 2005·06 $3.000,000 $500,000 ---.-Projected ____Actual $2,500,000 $2,000,000 $1,500,000 $1,000,000 $0 7/05 8/05 9/05 Property Tax Fiscal Year-To-Date 2005-06 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 7/05 ........ Projected --Actual -~...... -- ......-------. BIOS 9/05 Transient Occupancy Tax Fiscal Year-To-Date 2005-06 $100,000 ....'_."...".,,' ",,,,,,,. "..." - - -",.",,,,,,., ,- """",.~' .A <",,,,,,,,,.,,,,,," -- -- ". -- -- ,." -"."." ----- -- ",,,,c'''''' -"''' -- ,,,,,,...., --- "",..,...--""""'''''''''' -- -- - - -- . -- .""'. -- -- ..... -I -+ Projected I -"'"'.'",,,,,.. Actual $600,000 $500,000 $400,000 $300,000 $200,000 7105 8/05 9105 7-0 $0 Planning, Building & Engineering Fees Fiscal Year-To-Date 2005-06 $2,000,000 $1,800.000 $1,600,000 $1,400,000 $1,200,000 $1,000.000 $800,000 $600,000 $400,000 $200,000 $0 ... -~ -- -- ....- .... -- - - 7/05 8/05 9/05 General Fund Expenditures Fiscal Year-to-Date 2005-06 $8,000,000 $7,000.000 $6,000,000 .....- $5,000,000 $4,000,000 .....- $3,000,000 ..... $2,000,000 $1,000,000 $0 7/05 8/05 --+-Budget ~Actual 9/05 I-I