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03 Staff Report. Financial and Investment Report January 2024 with attachments PREPARED BY: Eric Lemon Finance and Accounting Manager Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 03/19/2024 DATE: March 12, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Receive the Monthly Financial and Investment Report for January 2024 RECOMMENDATION: Receive the Monthly Financial and Investment Report for January 2024. BACKGROUND: California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Finance Director assumes the Town Treasurer role. Attachment 1 contains the January 2024 Monthly Financial and Investment Report which fulfills this requirement. The January 2024 Monthly Financial and Investment Report was received by the Finance Commission on March 11, 2024. DISCUSSION: The January 2024 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the end of the respective month. The fund balances were estimated at a point in time and will be finalized at the final close of the fiscal year. Please note that the amount in the Fund Schedule differs from the Portfolio Allocation and Treasurer’s Cash Fund Balances Summary schedule because assets and liabilities are components of the fund balance. PAGE 2 OF 3 SUBJECT: Monthly Financial and Investment Report for January 2024 DATE: March 12, 2024 DISCUSSION (continued): As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available. As of January 31, 2024, the Town’s financial position (Assets $86.18M, Liabilities $27.60M, and Fund Equity $58.58M) remains strong and there are no issues meeting financial obligations in the near future. As of January 31, 2024, the Town’s weighted portfolio yield for investments under management was 4.23% which was 22 basis points above the Local Agency Investment Fund (LAIF) yield of 4.01% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 212 days versus the Town’s longer WAM of 628 days. The longer maturity (WAM) for Town assets under management reflects the Town’s strategy to take advantage of higher yields associated with longer maturities balanced with shorter term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 4.23% remained consistent with the prior month. Since January 2023, LAIF yields had climbed from 243 basis points (2.43%) to 401 basis points (4.01%) through the end of January 2024. Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long term maturities in the three-to-five-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the LAIF pool during that same time period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing. On March 22, 2023, the Federal Reserve voted to approve a ¼ percentage basis point increase from 4.75% to 5.00%. This action was followed with additional hikes in May 2023 from 5.00% to 5.25% and July from 5.25 % to 5.5 %. Through these actions over time, the Federal Open Market Committee’s (FOMC) goal is to bring year to year inflation to its targeted level of 2%. The labor market data remained strong. The US economy added 216,000 new jobs in December, stronger than market expectations at 175,000. The unemployment rate held at 3.7%. Wage growth was stronger than expected at 4.1%, up from 4.0%. PAGE 3 OF 3 SUBJECT: Monthly Financial and Investment Report for January 2024 DATE: March 12, 2024 DISCUSSION (continued): The Town's investments are in compliance with the Town's Investment Policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. Staff identified a footing error on page 5 on several prior monthly investment reports for fiscal year 2024, where the summary of interest earned did not include all cells. The prior months interest is correctly listed on page 4 of Attachment 1. The details of the footing error are illustrated in Attachment 2. CONCLUSION: Receive Monthly Financial and Investment Report for January 2024. Attachments: 1. Financial and Investment Report (January 2024) 2. Correction of Footing Error This Page Intentionally Left Blank Weighted Average YTM Portfolio Yield on Investments under Management 4.23% Weighted Average Maturity (days)628 This Month Last Month One year ago Portfolio Allocation & Treasurer's Cash Balances $72,393,065 $67,640,642 $68,295,974 Cert. of Participation 2002 Lease Payment Fund Managed Investments $49,508,334 Local Agency Investment Fund $11,391,357 Reconciled Demand Deposit Balances $11,493,374 Portfolio Allocation & Treasurer's Cash Balances $72,393,065 Benchmarks/ References: Town's Average Yield 4.23%4.23%2.45% LAIF Yield for month 4.01%3.93%2.43% 3 mo. Treasury 5.38%5.36%4.69% 6 mo. Treasury 5.20%5.27%4.86% 2 yr. Treasury 4.21%4.25%4.21% 5 yr. Treasury (most recent)3.84%3.85%3.62% 10 Yr. Treasury 3.91%3.88%3.51% Town of Los Gatos Summary Investment Information January 31, 2024 0 -1 year44% 1 -2 years 19% 2 -3 years9% 3 -5 years 28% Portfolio Maturity Profile Compliance:The Town's investments are in compliance with the Town's investment policy dated February 21, 2023and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Month YTD Cash & Investment Balances - Beginning of Month/Period 67,640,642.20$ 78,384,947.79$ Receipts 8,451,869.96 41,000,100.65 Disbursements (3,699,447.44)(46,991,983.72) Cash & InvestmCash & Investment Balances - End of Month/Period $72,393,064.72 $72,393,064.72 Portfolio Allocation Amount % of Portfolio Max. % or $ Allowed per State Law or Policy BNY MM $65,991.81 0.11%20% of Town Portfolio US Treasury Notes $18,650,546.39 30.63%No Max. on US Treasuries Government Agency Debenture Notes $16,786,911.90 27.56%No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $14,004,884.01 23.00%30% of Town Portfolio Local Agency Investment Fund $11,391,356.50 18.71%$75 M per State Law Subtotal - InSubtotal - Investments 60,899,690.61 100.00% Reconciled Demand Deposit Balances 11,493,374.11 Total Portfolio Allocation & Treasurer's Cash Balances $72,393,064.72 0.0401 0.0388 Town of Los Gatos Portfolio Allocation & Treasurer's Cash Balances January 31, 2024 BNY MM0.11% US Treasury Notes30.63% Government Agency Debenture Notes27.56% Corporate Medium Term Bonds 23.0% Local Agency Investment Fund18.7% Portfolio Investment Allocation $68.3 M $72.4 M $0.0 M $10.0 M $20.0 M $30.0 M $40.0 M $50.0 M $60.0 M $70.0 M $80.0 M $90.0 M Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Treasurer's Fund Balances 2 January 2024 January 2024 January 2024 Beginning Deposits Interest/Ending Balance Realized Gain/Adj.Earnings Withdrawals Balance Non-Treasury Funds: Cert. of Participation 2002 Series A Reserve Fund 712,521.88$ 2,932.46$ 715,454.34$ Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 794.04 113,364.99 3.47 114,162.50 Note 1 Cert. of Participation 2002 Lease Payment Fund 438.64 110,061.36 1.86 110,501.86 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,353,228.32 6,027.51 1,359,255.83 Note 2 Total Restricted Funds:2,066,982.88$ 223,426.35$ 8,965.30$ -$ 2,299,374.53$ CEPPT IRS Section 115 Trust 1,462,577.40 (5,945.44)1,456,631.96$ Note 3 Grand Total COP's and CEPPT Trust 3,529,560.28$ 223,426.35$ 3,019.86$ -$ 3,756,006.49$ These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities. Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs. Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010. Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits. Town of Los Gatos Non-Treasury Restricted Fund Balances January 31, 2024 3 July 2023 133,845.42$ August 2023 131,615.82$ September 2023 158,361.71$ October 2023 149,112.14$ November 2023 163,137.22$ December 2023 177,498.26$ January 2024 183,950.61$ February 2024 - March 2024 - April 2024 - May 2024 - June 2024 - 1,097,521.18$ Town of Los Gatos Statement of Interest Earned January 31, 2024 4 Orginal Issue Market Value Maturity Yield to Interest Interest Interest DaysDepositParOriginal(Discount)Market Above (Under)Purchased Date or Maturity Received Earned Earned toInstitutionCUSIP #Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs.Current FY MaturityFFCB3133EKMX1Gov. Agency Debenture 2.23%8/2/2019 1,000,000.00 1,014,400.00 14,400.00 998,140.00 (16,260.00)2/23/2024 1.90%96,075.83$ 74,902.07$ 11,277.27$ 23FFCB3133EMBE1Gov. Agency Debenture 0.30%10/8/2020 1,600,000.00 1,598,000.00 (2,000.00)1,586,480.00 (11,520.00)3/28/2024 0.34%14,253.34$ 14,655.57$ 3,166.78$ 57Apple 037833DB3 Corporate Bond 2.90%12/20/2022 1,300,000.00 1,228,591.00 (71,409.00)1,241,799.00 13,208.00 6/21/2027 4.19%27,437.22$ 28,170.97$ 31,545.62$ 1237Home Depot 437076BM3 Corporate Bond 3.00%8/4/2022 1,000,000.00 991,960.00 (8,040.00)970,620.00 (21,340.00)1/1/2026 3.04%34,750.00$ 29,252.66$ 19,058.55$ 701US Treasury 912828ZW3 US Treasury Note 0.25%8/9/2022 350,000.00 322,096.88 (27,903.12)330,067.50 7,970.62 6/30/2025 3.16%1,217.39$ 9,366.72$ 6,196.44$ 516IBM 459200JY8 Corporate Bond 3.00%3/25/2021 1,000,000.00 1,071,040.00 71,040.00 993,040.00 (78,000.00)5/15/2024 0.71%79,166.67$ 16,751.96$ 4,355.10$ 105FFCB3133EN5V8Gov. Agency Debenture 4.13%1/17/2023 236,000.00 239,174.20 3,174.20 236,375.24 (2,798.96)1/11/2027 3.76%9,572.75$ 4,016.30$ 5,265.28$ 1076US Treasury 91282CBT7 US Treasury Note 0.75%9/30/2022 800,000.00 712,565.18 (87,434.82)744,312.00 31,746.82 3/31/2026 4.14%6,000.00$ 23,165.06$ 18,243.55$ 790FFCB3133ENP95Gov. Agency Debenture 4.25%9/30/2022 900,000.00 900,939.60 939.60 897,822.00 (3,117.60)9/30/2025 4.14%38,250.00$ 28,374.86$ 22,346.50$ 608American Honda 02665WCZ2 Corporate Bond 2.40%11/27/2019 1,000,000.00 1,012,410.01 12,410.01 987,700.00 (24,710.01)6/27/2024 2.12%96,733.34$ 76,483.79$ 12,543.11$ 148JP Morgan Chase 46625HRS1 Corporate Bond 3.20%9/23/2022 500,000.00 474,660.00 (25,340.00)483,515.00 8,855.00 3/15/2026 4.70%19,644.44$ 17,865.15$ 13,717.88$ 774 Honeywell Int'l.438516BW5 Corporate Bond 2.30%11/20/2019 1,000,000.00 1,014,660.00 14,660.00 984,860.00 (29,800.00)7/15/2024 1.64%85,483.33$ 71,679.55$ 11,692.80$ 166Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2.85%2/23/2021 1,000,000.00 1,077,370.00 77,370.00 992,920.00 (84,450.00)5/17/2024 0.44%77,900.00$ 10,677.18$ 2,678.64$ 107FNMA3135G0V75Gov. Agency Debenture 1.75%10/17/2019 1,100,000.00 1,105,833.30 5,833.30 1,084,314.00 (21,519.30)7/2/2024 1.63%81,331.25$ 66,718.86$ 10,609.88$ 153US Bancorp 91159HHV5 Corporate Bond 3.38%12/24/2019 1,000,000.00 1,049,040.00 49,040.00 999,810.00 (49,230.00)2/5/2024 2.12%121,968.75$ 76,859.43$ 12,869.76$ 5FFCB3133EKQA7Gov. Agency Debenture 2.08%10/21/2019 1,000,000.00 1,019,780.00 19,780.00 982,820.00 (36,960.00)9/10/2024 1.66%80,831.11$ 61,888.40$ 9,870.92$ 223FHLB3135G05X7Gov. Agency Debenture 0.38%6/10/2022 1,200,000.00 1,102,952.40 (97,047.60)1,127,760.00 24,807.60 8/25/2025 3.04%5,437.50$ 36,626.55$ 20,453.79$ 572US Treasury 912828ZL7 US Treasury Note 0.38%4/12/2022 1,700,000.00 1,583,927.57 (116,072.43)1,614,677.00 30,749.43 4/30/2025 2.72%9,879.49$ 54,017.06$ 26,156.91$ 455JP Morgan Chase 46625HJT8 Corporate Bond 3.88%9/23/2019 1,400,000.00 1,485,414.00 85,414.00 1,400,000.00 (85,414.00)2/1/2024 2.39%209,163.89$ 130,689.90$ 20,420.30$ 1FHLB3130ALH98Gov. Agency Debenture 0.25%2/26/2021 1,000,000.00 997,610.00 (2,390.00)996,470.00 (1,140.00)2/26/2024 0.33%6,250.00$ 7,713.30$ 1,941.87$ 26FHLB3130AQF65Gov. Agency Debenture 1.25%11/30/2022 1,300,000.00 1,160,559.40 (139,440.60)1,202,487.00 41,927.60 12/21/2026 4.15%17,197.92$ 29,385.32$ 29,801.15$ 1055US Treasury 912828X70 US Treasury Note 2.00%12/30/2019 1,000,000.00 1,010,589.29 10,589.29 991,760.00 (18,829.29)4/30/2024 1.75%76,703.30$ 61,478.37$ 10,342.61$ 90US Treasury 912828XT2 US Treasury Note 2.00%10/31/2019 1,000,000.00 1,015,667.41 15,667.41 989,340.00 (26,327.41)5/31/2024 1.64%81,639.34$ 60,792.37$ 9,768.58$ 121FHLB3130APJH9Gov. Agency Debenture 1.00%1/17/2023 1,000,000.00 907,010.00 (92,990.00)935,370.00 28,360.00 10/28/2026 4.17%8,354.17$ 15,544.14$ 20,377.98$ 1001FFCB3133EN5N6Gov. Agency Debenture 4.00%2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,699,626.00 (7,106.00)1/6/2028 3.91%61,955.56$ 25,921.64$ 39,247.56$ 1436Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38%5/1/2023 750,000.00 689,032.50 (60,967.50)702,637.50 13,605.00 9/23/2025 3.97%1,109.37$ 4,638.18$ 16,620.16$ 601American Honda 02665WED9 Corporate Bond 4.70%5/11/2023 600,000.00 608,856.00 8,856.00 605,850.00 (3,006.00)1/12/2028 4.34%18,878.33$ 3,603.61$ 15,495.53$ 1442US Treasury 91282CEF4 US Treasury Note 2.50%6/9/2023 1,500,000.00 1,416,626.12 (83,373.88)1,434,315.00 17,688.88 3/31/2027 4.09%11,577.87$ 3,416.23$ 34,975.73$ 1155US Treasury 91282CGA3 US Treasury Note 4.00%6/20/2023 2,100,000.00 2,080,558.59 (19,441.41)2,089,752.00 9,193.41 12/15/2025 4.40%40,852.46$ 2,515.25$ 54,077.81$ 684Colgate-Palmolive 194162AR4 Corporate Bond 4.60%7/14/2023 500,000.00 504,655.00 4,655.00 510,850.00 6,195.00 2/1/2028 4.37%3,002.79$ -$ 12,103.12$ 1462FannieMae3135G06G3Gov. Agency Debenture 0.50%7/14/2023 500,000.00 455,157.00 (44,843.00)467,580.00 12,423.00 11/7/2025 4.63%784.72$ -$ 12,018.32$ 646FFCB3133EPQC2Gov. Agency Debenture 4.63%7/17/2023 500,000.00 501,957.50 1,957.50 505,165.00 3,207.50 7/17/2026 4.48%11,562.50$ -$ 12,190.88$ 898FFCB3133EPBM6Gov. Agency Debenture 4.13%7/14/2023 600,000.00 596,220.00 (3,780.00)601,926.00 5,706.00 8/23/2027 4.29%2,681.25$ -$ 14,135.63$ 1300PNC Bank 69353RFJ2 Corporate Bond 3.25%7/25/2023 1,000,000.00 921,490.00 (78,510.00)942,490.00 21,000.00 12/23/2027 5.23%15,979.17$ -$ 26,171.47$ 1422US Treasury 91282CFU0 US Treasury Note 4.13%7/31/2023 1,300,000.00 1,290,660.60 (9,339.40)1,307,514.00 16,853.40 10/31/2027 4.31%13,406.25$ -$ 28,139.41$ 1369Toyota Motor Credit 89236TKL8 Corporate Bond 5.45%8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,656,752.00 39,584.00 11/10/2027 5.16%18,166.67$ -$ 36,210.91$ 1379US Treasury 912810FE3 US Treasury Note 5.50%10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,279,968.00 41,760.86 8,788.04 8/15/2028 4.76%(8,788.04)$ -$ 19,119.97$ 1658Pepsico Inc 713448DF2 Corporate Bond 2.85%10/16/2023 1,000,000.00 947,570.00 (52,430.00)967,940.00 20,370.00 4,116.67 11/24/2025 5.24%(4,116.67)$ -$ 15,640.52$ 663FFCB3133EPUW3Gov. Agency Debenture 4.75%10/13/2023 1,000,000.00 994,338.00 (5,662.00)1,014,860.00 20,522.00 5,541.67 9/1/2026 4.96%(5,541.67)$ -$ 14,905.98$ 944Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50%10/13/2023 1,000,000.00 951,540.00 (48,460.00)968,500.00 16,960.00 2,541.67 2/12/2025 5.32%(2,541.67)$ -$ 15,443.91$ 378US Treasury 91282CEW7 US Treasury Note 3.25%10/16/2023 1,000,000.00 950,039.06 (49,960.94)977,310.00 27,270.94 6/30/2027 4.73%6,711.96$ -$ 13,478.48$ 1246US Treasury 91282CEN7 US Treasury Note 2.75%10/31/2023 1,300,000.00 1,214,336.39 (85,663.61)1,251,354.00 37,017.61 4/30/2027 4.82%-$ -$ 15,182.50$ 1185US Treasury 912828YV6 US Treasury Note 1.50%11/15/2023 700,000.00 673,667.97 (26,332.03)680,967.00 7,299.03 11/30/2024 5.26%430.33$ -$ 7,536.76$ 304US Treasury 91282CAB7 US Treasury Note 0.25%11/15/2023 675,000.00 623,900.39 (51,099.61)634,581.00 10,680.61 7/31/2025 4.92%353.09$ -$ 6,661.55$ 547US Treasury 91282CGU9 US Treasury Note 3.88%11/30/2023 1,000,000.00 983,515.62 (16,484.38)991,760.00 8,244.38 6,458.33 3/31/2025 5.17%(6,458.33)$ -$ 8,680.82$ 425US Treasury 91282CCH2 US Treasury Note 1.25%12/21/2023 900,000.00 798,647.55 (101,352.45)803,745.00 5,097.45 6/30/2028 3.99%305.71$ -$ 3,777.58$ 1612FNMA3135G0Q22Gov. Agency Debenture 1.88%12/21/2023 900,000.00 845,676.00 (54,324.00)850,977.00 5,301.00 4,078.12 9/24/2026 4.22%(4,078.12)$ -$ 4,105.16$ 967US Treasury 91282CFB2 US Treasury Note 2.75%1/2/2024 1,000,000.00 960,354.91 (39,645.09)960,470.00 115.09 7/31/2027 3.95%2,167.12$ -$ 3,065.26$ 1277US Treasury 91282CHE4 US Treasury Note 3.63%1/17/2024 1,800,000.00 1,775,185.72 (24,814.28)1,779,408.00 4,222.28 8,557.37 5/31/2028 3.97%(8,557.37)$ -$ 2,720.41$ 1582 Subtotal 50,511,000.00$ 49,442,342.30$ (1,068,657.70)$ 49,458,756.24$ 16,413.94$ 40,081.87$ 1,455,084.31$ 1,047,170.46$ 766,406.71$ BNY MM Money Market 65,991.81 65,991.81 0.00 0.00%1LAIFState Investment Pool 11,391,356.50 11,317,804.00 (73,552.50)4.01%291,200.03 1 $60,899,690.61 $60,842,552.05 ($57,138.56)$40,081.87 1,455,084.31$ 1,047,170.46$ 1,057,606.74$ Matured AssetsPNC Financial 69349LAM0 Corporate Bond 3.80%2/7/2022 1,000,000.00 1,033,470.00 33,470.00 7/25/2023 1.49%55,733.33$ 20,987.56$ 1,032.85$ US Treasury 91282CCN9 US Treasury Note 0.13%1/13/2022 1,200,000.00 1,188,375.00 (11,625.00)7/31/2023 0.75%2,323.37$ 13,176.45$ 766.36$ Toyota Motor Credit 89236THA6 1 Corporate Bond 1.35%4/12/2021 500,000.00 510,580.00 10,580.00 8/25/2023 0.45%15,993.75$ 5,065.91$ 350.67$ Toyota Motor Credit 89236THA6 Corporate Bond 1.35%1/11/2022 1,100,000.00 1,107,315.00 7,315.00 8/25/2023 0.94%24,090.00$ 15,144.57$ 1,585.23$ US Treasury 91282CDA6 US Treasury Note 0.25%1/31/2022 1,100,000.00 1,085,222.44 (14,777.56)9/30/2023 1.07%4,570.74$ 16,417.94$ 2,932.91$ American Honda 02665WCQ2 Corporate Bond 3.63%9/14/2021 950,000.00 1,012,871.00 62,871.00 10/10/2023 0.41%71,362.15$ 7,316.05$ 1,141.03$ FFCB 3133EMCQ3 Gov. Agency Debenture 0.28%10/16/2020 2,000,000.00 1,998,000.00 (2,000.00)10/13/2023 0.31%16,753.33$ 16,950.71$ 1,803.27$ US Treasury 91282CAP6 US Treasury Note 0.13%6/30/2021 1,000,000.00 995,390.63 (4,609.37)10/15/2023 0.33%2,865.44$ 6,520.12$ 955.69$ US Treasury 91282CDD0 US Treasury Note 0.38%1/13/2022 1,100,000.00 1,090,675.78 (9,324.22)10/31/2023 0.85%7,406.77$ 13,599.56$ 3,138.36$ US Treasury 91282CAW1 US Treasury Note 0.25%7/15/2021 1,200,000.00 1,199,437.50 (562.50)11/15/2023 0.27%7,002.72$ 6,348.21$ 1,225.25$ US Treasury 912828U57 US Treasury Note 2.13%7/31/2019 1,000,000.00 1,011,875.00 11,875.00 11/30/2023 1.84%92,083.33$ 72,526.17$ 7,759.79$ FFCB 3133EJ3Q0 Gov. Agency Debenture 2.88%8/28/2019 1,500,000.00 1,587,503.75 87,503.75 12/21/2023 2.12%164,473.96$ 87,804.46$ 10,897.27$ US Treasury 912828V23 US Treasury Note 2.25%11/29/2021 1,000,000.00 1,032,933.04 32,933.04 12/31/2023 0.66%46,956.52$ 10,649.43$ 3,390.13$ US Treasury 91282CBE0 US Treasury Note 0.13%9/15/2021 650,000.00 647,615.46 (2,384.54)1/15/2024 0.28%1,894.37$ 3,281.18$ 999.93$ US Treasury 91282CBE0 2 US Treasury Note 0.13%10/7/2021 1,000,000.00 994,768.98 (5,231.02)1/15/2024 0.36%2,839.67$ 6,137.79$ 1,935.69$ Total Investments "Matured"39,914.44$ Total Interest FY 23_24 Matured and Current 1,097,521.18$ Maturity Profile Amount Percent0-1 year 26,602,830.29$ 44%1-2 years $11,633,150.55 19%2-3 years $5,835,940.28 10%3-5 years 16,827,769.49$ 28%$60,899,690.61 Town of Los Gatos Investment ScheduleJanuary 31, 2024 5 Date Cusip/Id Description Transaction Type Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction Total 1/2/2024 91282CFB2 USA TREASURY 2.75% 31JUL2027 PURCHASE 1/2/2024 1,000,000 275.000%7/31/2027 96.04 960,354.91 11,582.88 971,937.79 1/2/2024 3135G0V75 FANNIE MAE 1.75% 02JUL2024 BOND INTEREST 1/2/2024 1,100,000 175.000%7/2/2024 - - 9,625.00 9,625.00 1/2/2024 912828V23 USA TREASURY 2.25% 31DEC2023 REDEMPTION 1,000,000 225.000%12/31/2023 100.00 1,000,000.00 - 1,000,000.00 1/3/2024 Cash-USD Cash-USD SHORT TERM INVESTMENT FUND INCOME 1/3/2024 350 0.000%100.00 - - 349.60 1/8/2024 3133EN5N6 FEDERAL FARM CREDIT BANK 4% 06JAN2028 BOND INTEREST 1/6/2024 1,700,000 400.000%1/6/2028 - - 34,000.00 34,000.00 1/11/2024 3133EN5V8 FEDERAL FARM CREDIT BANK 4.125% 11JAN2027 BOND INTEREST 1/11/2024 236,000 412.500%1/11/2027 - - 4,867.50 4,867.50 1/12/2024 02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 BOND INTEREST 1/12/2024 600,000 470.000%1/12/2028 - - 14,100.00 14,100.00 1/16/2024 91282CBE0 USA TREASURY 0.125% 15JAN2024 BOND INTEREST 1/15/2024 1,650,000 12.500%1/15/2024 - - 1,031.25 1,031.25 1/17/2024 91282CHE4 USA TREASURY 3.625% 31MAY2028 PURCHASE 1/17/2024 1,800,000 362.500%5/31/2028 98.62 1,775,185.72 8,557.38 1,783,743.10 1/16/2024 91282CBE0 USA TREASURY 0.125% 15JAN2024 REDEMPTION 1/16/2024 1,650,000 12.500%1/15/2024 100.00 1,650,000.00 - 1,650,000.00 1/17/2024 3133EPQC2 FEDERAL FARM CREDIT BANK 4.625% 17JUL2026 BOND INTEREST 1/17/2024 500,000 462.500%7/17/2026 - - 11,562.50 11,562.50 1/22/2024 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 BOND INTEREST 1/22/2024 1,000,000 325.000%1/22/2028 - - 16,250.00 16,250.00 1/31/2024 91282CAB7 USA TREASURY 0.25% 31JUL2025 BOND INTEREST 1/31/2024 675,000 25.000%7/31/2025 - - 843.75 843.75 1/31/2024 91282CFB2 USA TREASURY 2.75% 31JUL2027 BOND INTEREST 1/31/2024 1,000,000 275.000%7/31/2027 - - 13,750.00 13,750.00 Town of Los GatosInvestment Transaction Detail January 31, 2024 6 Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance JPMORGAN CHASE & CO 3.875% 01FEB2024 2/1/2024 1,400,000$ A-A1 3 1 3 4 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24)2/5/2024 1,000,000$ A A3 4 3 4 4 IBM CORP 3.0% 15MAY2024 5/15/2024 1,000,000$ A-A3 2 1 2 3 CATERPILLAR FIN SERVICES 2.85% 17MAY24 5/17/2024 1,000,000$ A A2 4 4 3 4 AMERICAN HONDA FINANCE 2.4% 27JUN2024 6/27/2024 1,000,000$ A-A3 3 2 3 3 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24)8/15/2024 1,000,000$ A A2 4 3 4 3 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)2/24/2026 1,000,000$ A+A1 2 2 2 2 HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026)4/1/2026 1,000,000$ A A2 2 2 3 3 JPMORGAN CHASE & CO 3.2 15JUN2026 (CALLABLE 15MAR26)6/15/2026 500,000$ A-A1 3 1 3 4 APPLE INC. 2.9% 12SEP2027 (CALLABLE 12JUN27)9/12/2027 1,300,000$ AA+Aaa 5 1 4 5 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000$ A+A1 3 2 3 5 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000$ A-A3 3 2 3 3 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 01 FEB28)1/22/2028 1,000,000$ A A2 3 2 3 3 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28)3/1/2028 500,000$ AA-Aa3 3 2 3 3 Total/Average 13,900,000$ 3.1 2.0 3.1 3.5 *ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry. Town of Los Gatos Insight ESG Ratings as of January 31, 2024 7 Fund Schedule Fund Number Fund Description Current Revenue Current Expenditure Transfer In Transfer Out GENERAL FUND Non-Spendable: Loans Receivable 159,000 - - - - - 159,000 Restricted Fund Balances: Pension 1,400,163 - - - - - 1,400,163 Land Held for Resale 44,338 - - - - - 44,338 Committed Fund Balances: Budget Stabilization 6,129,774 - - - - - 6,129,774 Catastrophic 6,129,775 - - - - - 6,129,775 Pension/OPEB 300,000 - - - - - 300,000 Measure G District Sales Tax 590,581 - - - - - 590,581 Assigned Fund Balances: Open Space 410,000 - - - - - 410,000 Sustainability 140,553 - - - - - 140,553 Capital/Special Projects 10,359,577 - - - - - 10,359,577 Carryover Encumbrances 37,698 - - - - - 37,698 Compensated Absences 1,580,623 - - - - - 1,580,623 ERAF Risk Reserve 689,608 - - - - - 689,608 Council Priorities - Economic Recovery 1,556,614 - - - - - Unassigned Fund Balances: 111 Other Unassigned Fund Balance Reserve (Pre YE distribution)- (4,093,492) 7,747,425 ( 4,496,078)- - 1,556,614 ( 842,145) General Fund Total 29,528,304 (4,093,492) 7,747,425 ( 4,496,078)- - 28,686,159 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. Jan 2024 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Dec Estimated Fund Balance 1/31/2024* 8 Fund Schedule Fund Number Fund Description Current Revenue Current Expenditure Transfer In Transfer Out SPECIAL REVENUE 211/212 CDBG 166,653 - - - - - 166,653 222 Urban Runoff (NPDES)629,843 28,905 29,996 (20,535) - - 668,209 231-236 Landscape & Lighting Districts 176,964 (13,774) 20,660 (4,325) - - 179,525 251 Los Gatos Theatre 74,991 3,084 40,735 (10,236) - - 108,574 711-716 Library Trusts 530,173 75,782 - (3,304) - - 602,651 Special Revenue Total 1,578,624 93,997 91,391 (38,400) - - 1,725,612 CAPITAL PROJECTS 411 GFAR - General Fund Appropriated Reserve 21,725,837 (1,035,335) 89,622 (152,018) - - 20,628,106 412 Community Center Development - 866,281 - - - - 866,281 421 Grant Funded Projects (406,890) (123,034) 590,377 (368,930) - - (308,477) 461-463 Storm Basin Projects 3,218,331 76,142 3,854 - - - 3,298,327 471 Traffic Mitigation Projects 431,079 - - - - - 431,079 472 Utility Undergrounding Projects 3,438,996 11,736 1,229 - - - 3,451,961 481 Gas Tax Projects 1,671,245 (772,630) 126,978 - - - 1,025,593 Capital Projects Total 30,078,598 (976,840) 812,060 (520,948) - - 29,392,870 INTERNAL SERVICE FUNDS 611 Town General Liability 212,022 3,189 - - - - 215,211 612 Workers Compensation 514,813 (367,596) - (6,685) - - 140,532 621 Information Technology 2,474,618 (166,970) 8,336 (18,112) - - 2,297,872 631 Vehicle & Equipment Replacement 2,413,719 502,162 - - - - 2,915,881 633 Facility Maintenance 927,700 269,739 8,163 (145,766) - - 1,059,836 Internal Service Funds Total 6,542,872 240,524 16,499 (170,563) - - 6,629,332 Trust/Agency 942 RDA Successor Agency (6,187,789) (1,674,622) 233,663 (224,740) - - (7,853,488) Trust/Agency Fund Total (6,187,789) (1,674,622) 233,663 (224,740) - - (7,853,488) Total Town 61,540,609 8,901,038 (5,450,729)- - 58,580,485 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. Deposit Accounts of Interest: 111-23541 General Plan Update deposit account balance $861,100.54 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Dec Jan 2024 Estimated Fund Balance 1/31/2024* 9 This Page Intentionally Left Blank July-December Interest Earned Correc�on Summary August Investment Report – Page 5 – Matured Assets Interest Earned Reported $1,799.21 Corrected ATTACHMENT 2 1 September Investment Report – Page 5 – Matured Assets Interest Earned October Investment Report – Page 5 – Matured Assets Interest Earned Corrected Reported $1,799.21 OK 2 November Investment Report – Page 5 – Matured Assets Interest Earned December Investment Report – Page 5 – Matured Assets Interest Earned Reported $13,706.37 Reported $13,706.37 Corrected Corrected 3