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06 Staff Report. Financial and Investment Report February 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: 04/16/2024 DATE: April 9, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Receive the Monthly Financial and Investment Report for February 2024 RECOMMENDATION: Receive the Monthly Financial and Investment Report for February 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 February 2024 Monthly Financial and Investment Report which fulfills this requirement. The February 2024 Monthly Financial and Investment Report was received by the Finance Commission on April 8, 2024. DISCUSSION: The February 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 February 2024 DATE: April 9, 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 February 29, 2024, the Town’s financial position (Assets $85.07M, Liabilities $27.51M, and Fund Equity $57.56M) remains strong and there are no issues meeting financial obligations in the near future. As of February 29, 2024, the Town’s weighted portfolio yield for investments under management was 4.32% which was 20 basis points above the Local Agency Investment Fund (LAIF) yield of 4.12% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 218 days versus the Town’s longer WAM of 682 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 4.32% at the close of February was 9 basis points higher when compared to the prior month’s return of 4.23% reported as of January 31, 2024. Since February 2023, LAIF yields had climbed from 262 basis points (2.62%) to 412 basis points (4.12%) through the end of February 2024. Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long term maturities in the two-to-four-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%. PAGE 3 OF 3 SUBJECT: Monthly Financial and Investment Report for February 2024 DATE: April 9, 2024 DISCUSSION (continued): The labor market data was strong. Employment rose by 353,000 jobs in January, exceeding the consensus estimate for 185,000, albeit the data may have reflected some seasonal adjustment complications. Wage growth was surprisingly strong at 0.6% month-on-month, up 4.5% year- on-year from 4.3%. The unemployment rate was unchanged at 3.7%, partly due to the participation rate remaining at 62.5%. 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. CONCLUSION: Receive Monthly Financial and Investment Report for February 2024. Attachment: 1. Financial and Investment Report (February 2024) Weighted Average YTM Portfolio Yield on Investments under Management 4.32% Weighted Average Maturity (days)682 This Month Last Month One year ago Portfolio Allocation & Treasurer's Cash Balances $71,152,030 $72,393,065 $69,108,644 Cert. of Participation 2002 Lease Payment Fund Managed Investments $49,463,891 Local Agency Investment Fund $11,391,357 Reconciled Demand Deposit Balances $10,296,783 Portfolio Allocation & Treasurer's Cash Balances $71,152,030 Benchmarks/ References: Town's Average Yield 4.32%4.23%2.66% LAIF Yield for month 4.12%4.01%2.62% 3 mo. Treasury 5.39%5.38%4.85% 6 mo. Treasury 5.32%5.20%5.18% 2 yr. Treasury 4.62%4.21%4.82% 5 yr. Treasury (most recent)4.25%3.84%4.19% 10 Yr. Treasury 4.25%3.91%3.93% Town of Los Gatos Summary Investment Information February 29, 2024 0 -1 year 38% 1 -2 years 17% 2 -3 years13% 3 -5 years 32% Portfolio Maturity Profile Compliance:The Town's investments are in compliance with the Town's investment policy dated February 21, 2023and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Month YTD Cash & Investment Balances - Beginning of Month/Period 72,393,064.72$ 78,384,947.79$ Receipts 3,732,973.50 44,733,074.15 Disbursements (4,974,007.87)(51,965,991.59) Cash & Investm Cash & Investment Balances - End of Month/Period $71,152,030.35 $71,152,030.35 Portfolio Allocation Amount % of Portfolio Max. % or $ Allowed per State Law or Policy BNY MM $27,261.53 0.04%20% of Town Portfolio US Treasury Notes $19,802,509.31 32.54%No Max. on US Treasuries Government Agency Debenture Notes $15,777,961.90 25.93%No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,856,158.01 22.77%30% of Town Portfolio Local Agency Investment Fund $11,391,356.50 18.72%$75 M per State Law Subtotal - InSubtotal - Investments 60,855,247.25 100.00% Reconciled Demand Deposit Balances 10,296,783.10 Total Portfolio Allocation & Treasurer's Cash Balances $71,152,030.35 0.0401 0.0388 Town of Los Gatos Portfolio Allocation & Treasurer's Cash Balances February 29, 2024 BNY MM0.04% US Treasury Notes32.54% Government Agency Debenture Notes25.93% Corporate Medium Term Bonds22.8% Local Agency Investment Fund18.7% Portfolio Investment Allocation $69.1 M $71.2 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 $90.0 M Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Treasurer's Fund Balances 2 February 2024 February 2024 February 2024 Beginning Deposits Interest/Ending Balance Realized Gain/Adj.Earnings Withdrawals Balance Non-Treasury Funds: Cert. of Participation 2002 Series A Reserve Fund 715,454.34$ -$ 2,927.32$ 29,203.34$ 689,178.32$ Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 114,162.50 - 100.71 114,162.50 100.71 Note 1 Cert. of Participation 2002 Lease Payment Fund 110,501.86 29,203.34 89.05 110,500.00 29,294.25 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,359,255.83 6,024.99 1,365,280.82 Note 2 Total Restricted Funds:2,299,374.53$ 29,203.34$ 9,142.07$ 253,865.84$ 2,083,854.10$ CEPPT IRS Section 115 Trust 1,456,631.96 690,000.00 544.16 2,147,176.12$ Note 3 Grand Total COP's and CEPPT Trust 3,756,006.49$ 719,203.34$ 9,686.23$ 253,865.84$ 4,231,030.22$ 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 February 29, 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 183,453.40$ March 2024 - April 2024 - May 2024 - June 2024 - 1,280,974.58$ Town of Los Gatos Statement of Interest Earned February 29, 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 Maturity FFCB 3133EMBE1 Gov. Agency Debenture 0.30%10/8/2020 1,600,000.00 1,598,000.00 (2,000.00)1,593,632.00 (4,368.00)3/28/2024 0.34%14,253.34$ 14,655.57$ 3,593.93$ 28Apple 037833DB3 Corporate Bond 2.90%12/20/2022 1,300,000.00 1,228,591.00 (71,409.00)1,226,095.00 (2,496.00)6/21/2027 4.19%27,437.22$ 28,170.97$ 35,800.61$ 1208Home Depot 437076BM3 Corporate Bond 3.00%8/4/2022 1,000,000.00 991,960.00 (8,040.00)962,830.00 (29,130.00)1/1/2026 3.04%34,750.00$ 29,252.66$ 21,629.24$ 672US Treasury 912828ZW3 US Treasury Note 0.25%8/9/2022 350,000.00 322,096.88 (27,903.12)329,343.00 7,246.12 6/30/2025 3.16%1,217.39$ 9,366.72$ 7,032.24$ 487IBM 459200JY8 Corporate Bond 3.00%3/25/2021 1,000,000.00 1,071,040.00 71,040.00 994,940.00 (76,100.00)5/15/2024 0.71%79,166.67$ 16,751.96$ 4,942.54$ 76FFCB3133EN5V8Gov. Agency Debenture 4.13%1/17/2023 236,000.00 239,174.20 3,174.20 233,654.16 (5,520.04)1/11/2027 3.76%9,572.75$ 4,016.30$ 5,975.48$ 1047US Treasury 91282CBT7 US Treasury Note 0.75%9/30/2022 800,000.00 712,565.18 (87,434.82)739,472.00 26,906.82 3/31/2026 4.14%6,000.00$ 23,165.06$ 20,704.30$ 761FFCB3133ENP95Gov. Agency Debenture 4.25%9/30/2022 900,000.00 900,939.60 939.60 892,017.00 (8,922.60)9/30/2025 4.14%38,250.00$ 28,374.86$ 25,360.68$ 579American Honda 02665WCZ2 Corporate Bond 2.40%11/27/2019 1,000,000.00 1,012,410.01 12,410.01 989,950.00 (22,460.01)6/27/2024 2.12%108,733.34$ 76,483.79$ 14,234.97$ 119JP Morgan Chase 46625HRS1 Corporate Bond 3.20%9/23/2022 500,000.00 474,660.00 (25,340.00)481,270.00 6,610.00 3/15/2026 4.70%19,644.44$ 17,865.15$ 15,568.20$ 745Honeywell Int'l.438516BW5 Corporate Bond 2.30%11/20/2019 1,000,000.00 1,014,660.00 14,660.00 986,160.00 (28,500.00)7/15/2024 1.64%96,983.33$ 71,679.55$ 13,269.96$ 137Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2.85%2/23/2021 1,000,000.00 1,077,370.00 77,370.00 993,910.00 (83,460.00)5/17/2024 0.44%77,900.00$ 10,677.18$ 3,039.94$ 78FNMA3135G0V75Gov. Agency Debenture 1.75%10/17/2019 1,100,000.00 1,105,833.30 5,833.30 1,086,646.00 (19,187.30)7/2/2024 1.63%81,331.25$ 66,718.86$ 12,040.98$ 124FFCB3133EKQA7Gov. Agency Debenture 2.08%10/21/2019 1,000,000.00 1,019,780.00 19,780.00 983,520.00 (36,260.00)9/10/2024 1.66%80,831.11$ 61,888.40$ 11,202.35$ 194FHLB3135G05X7Gov. Agency Debenture 0.38%6/10/2022 1,200,000.00 1,102,952.40 (97,047.60)1,124,076.00 21,123.60 8/25/2025 3.04%7,687.50$ 36,626.55$ 23,212.67$ 543US Treasury 912828ZL7 US Treasury Note 0.38%4/12/2022 1,700,000.00 1,583,927.57 (116,072.43)1,612,739.00 28,811.43 4/30/2025 2.72%9,879.49$ 54,017.06$ 29,685.05$ 426FHLB3130AQF65Gov. Agency Debenture 1.25%11/30/2022 1,300,000.00 1,160,559.40 (139,440.60)1,189,760.00 29,200.60 12/21/2026 4.15%17,197.92$ 29,385.32$ 33,820.85$ 1026US Treasury 912828X70 US Treasury Note 2.00%12/30/2019 1,000,000.00 1,010,589.29 10,589.29 994,570.00 (16,019.29)4/30/2024 1.75%76,703.30$ 61,478.37$ 11,737.65$ 61US Treasury 912828XT2 US Treasury Note 2.00%10/31/2019 1,000,000.00 1,015,667.41 15,667.41 991,760.00 (23,907.41)5/31/2024 1.64%81,639.34$ 60,792.37$ 11,086.20$ 92FHLB3130APJH9Gov. Agency Debenture 1.00%1/17/2023 1,000,000.00 907,010.00 (92,990.00)928,120.00 21,110.00 10/28/2026 4.17%8,354.17$ 15,544.14$ 23,126.64$ 972FFCB3133EN5N6Gov. Agency Debenture 4.00%2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,674,925.00 (31,807.00)1/6/2028 3.91%61,955.56$ 25,921.64$ 44,541.41$ 1407Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38%5/1/2023 750,000.00 689,032.50 (60,967.50)700,365.00 11,332.50 9/23/2025 3.97%1,109.37$ 4,638.18$ 18,861.95$ 572American Honda 02665WED9 Corporate Bond 4.70%5/11/2023 600,000.00 608,856.00 8,856.00 597,174.00 (11,682.00)1/12/2028 4.34%18,878.33$ 3,603.61$ 17,585.62$ 1413US Treasury 91282CEF4 US Treasury Note 2.50%6/9/2023 1,500,000.00 1,416,626.12 (83,373.88)1,417,845.00 1,218.88 3/31/2027 4.09%11,577.87$ 3,416.23$ 39,693.39$ 1126US Treasury 91282CGA3 US Treasury Note 4.00%6/20/2023 2,100,000.00 2,080,558.59 (19,441.41)2,073,834.00 (6,724.59)12/15/2025 4.40%40,852.46$ 2,515.25$ 61,372.02$ 655Colgate-Palmolive 194162AR4 Corporate Bond 4.60%7/14/2023 500,000.00 504,655.00 4,655.00 503,620.00 (1,035.00)2/1/2028 4.37%3,002.79$ -$ 13,849.34$ 1433FannieMae3135G06G3Gov. Agency Debenture 0.50%7/14/2023 500,000.00 455,157.00 (44,843.00)466,025.00 10,868.00 11/7/2025 4.63%784.72$ -$ 13,752.31$ 617FFCB3133EPQC2Gov. Agency Debenture 4.63%7/17/2023 500,000.00 501,957.50 1,957.50 500,210.00 (1,747.50)7/17/2026 4.48%11,562.50$ -$ 13,976.42$ 869FFCB3133EPBM6Gov. Agency Debenture 4.13%7/14/2023 600,000.00 596,220.00 (3,780.00)593,892.00 (2,328.00)8/23/2027 4.29%15,056.25$ -$ 16,175.10$ 1271PNC Bank 69353RFJ2 Corporate Bond 3.25%7/25/2023 1,000,000.00 921,490.00 (78,510.00)929,340.00 7,850.00 12/23/2027 5.23%15,979.17$ -$ 30,166.06$ 1393US Treasury 91282CFU0 US Treasury Note 4.13%7/31/2023 1,300,000.00 1,290,660.60 (9,339.40)1,288,781.00 (1,879.60)10/31/2027 4.31%13,406.25$ -$ 32,574.43$ 1340Toyota Motor Credit 89236TKL8 Corporate Bond 5.45%8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,631,296.00 14,128.00 11/10/2027 5.16%18,166.67$ -$ 42,815.41$ 1350US Treasury 912810FE3 US Treasury Note 5.50%10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,257,756.00 19,548.86 8/15/2028 4.76%24,211.96$ -$ 23,740.63$ 1629Pepsico Inc 713448DF2 Corporate Bond 2.85%10/16/2023 1,000,000.00 947,570.00 (52,430.00)961,100.00 13,530.00 11/24/2025 5.24%10,133.33$ -$ 19,879.54$ 634 FFCB 3133EPUW3 Gov. Agency Debenture 4.75%10/13/2023 1,000,000.00 994,338.00 (5,662.00)1,004,380.00 10,042.00 5,541.67 9/1/2026 4.96%(5,541.67)$ -$ 18,835.74$ 915Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50%10/13/2023 1,000,000.00 951,540.00 (48,460.00)0.00 (951,540.00)2/12/2025 5.32%4,958.33$ -$ 19,515.48$ 349US Treasury 91282CEW7 US Treasury Note 3.25%10/16/2023 1,000,000.00 950,039.06 (49,960.94)964,770.00 14,730.94 6/30/2027 4.73%6,711.96$ -$ 17,131.53$ 1217US Treasury 91282CEN7 US Treasury Note 2.75%10/31/2023 1,300,000.00 1,214,336.39 (85,663.61)1,236,378.00 22,041.61 4/30/2027 4.82%-$ -$ 19,968.28$ 1156US Treasury 912828YV6 US Treasury Note 1.50%11/15/2023 700,000.00 673,667.97 (26,332.03)681,107.00 7,439.03 11/30/2024 5.26%430.33$ -$ 10,375.29$ 275US Treasury 91282CAB7 US Treasury Note 0.25%11/15/2023 675,000.00 623,900.39 (51,099.61)632,893.50 8,993.11 7/31/2025 4.92%353.09$ -$ 9,170.45$ 518US Treasury 91282CGU9 US Treasury Note 3.88%11/30/2023 1,000,000.00 983,515.62 (16,484.38)988,090.00 4,574.38 6,458.33 3/31/2025 5.17%(6,458.33)$ -$ 12,741.20$ 396US Treasury 91282CCH2 US Treasury Note 1.25%12/21/2023 900,000.00 798,647.55 (101,352.45)791,649.00 (6,998.55)6/30/2028 3.99%305.71$ -$ 6,449.53$ 1583FNMA3135G0Q22Gov. Agency Debenture 1.88%12/21/2023 900,000.00 845,676.00 (54,324.00)843,255.00 (2,421.00)4,078.12 9/24/2026 4.22%(4,078.12)$ -$ 7,008.80$ 938US Treasury 91282CFB2 US Treasury Note 2.75%1/2/2024 1,000,000.00 960,354.91 (39,645.09)948,160.00 (12,194.91)7/31/2027 3.95%2,167.12$ -$ 6,130.52$ 1248US Treasury 91282CHE4 US Treasury Note 3.63%1/17/2024 1,800,000.00 1,775,185.72 (24,814.28)1,751,346.00 (23,839.72)8,557.37 5/31/2028 3.97%(8,557.37)$ -$ 8,355.54$ 1553JP Morgan Chase 46647PDG8 Corporate Bond 4.85%2/1/2024 1,400,000.00 1,396,528.00 (3,472.00)1,384,782.00 (11,746.00)1,131.90 7/25/2027 4.93%(1,131.90)$ -$ 5,286.39$ 1242US Bancorp 91159HJF8 Corporate Bond 4.55%2/5/2024 1,000,000.00 989,200.00 (10,800.00)975,900.00 (13,300.00)1,642.33 7/22/2027 4.89%(1,642.33)$ -$ 3,195.69$ 1239Treasury91282CHB0US Treasury Note 3.63%2/23/2024 1,175,000.00 1,151,962.92 (23,037.08)1,151,500.00 (462.92)11,701.58 5/15/2026 4.56%(11,701.58)$ -$ 870.40$ 806FHLB3130AXB31Gov. Agency Debenture 4.88%2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,004,410.00 1,350.00 21,395.83 3/13/2026 4.72%(21,395.83)$ -$ 258.91$ 743 Subtotal 50,686,000.00$ 49,436,629.22$ (1,249,370.78)$ 48,289,247.66$ (1,147,381.56)$ 60,507.13$ 1,078,629.20$ 757,005.75$ 861,341.88$ BNY MM Money Market 27,261.53 27,261.53 0.00 0.00%1LAIFState Investment Pool 11,391,356.50 11,317,804.00 (73,552.50)4.12%331,373.55 1 60,855,247.25 $59,634,313.19 ($1,220,934.06)$60,507.13 1,078,629.20$ 757,005.75$ 1,192,715.43$ 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$ FFCB 3133EKMX1 Gov. Agency Debenture 2.23%8/2/2019 1,000,000.00 1,014,400.00 14,400.00 2/23/2024 1.90%107,225.83$ 74,902.07$ 12,483.68$ US Bancorp 91159HHV5 Corporate Bond 3.38%12/24/2019 1,000,000.00 1,049,040.00 49,040.00 2/5/2024 2.12%138,843.75$ 76,859.43$ 13,169.06$ JP Morgan Chase 46625HJT8 Corporate Bond 3.88%9/23/2019 1,400,000.00 1,485,414.00 85,414.00 2/1/2024 2.39%236,288.89$ 130,689.90$ 20,515.28$ FHLB 3130ALH98 Gov. Agency Debenture 0.25%2/26/2021 1,000,000.00 997,610.00 (2,390.00)2/26/2024 0.33%7,500.00$ 7,713.30$ 2,176.70$ Total Investments "Matured"88,259.16$ Total Interest FY 23_24 Matured and Current 1,280,974.58$ Maturity Profile Amount Percent0-1 year 22,969,176.01$ 38%1-2 years $10,681,610.55 18%2-3 years $7,990,963.20 13%3-5 years 19,213,497.49$ 32%$60,855,247.25 Town of Los GatosInvestment ScheduleFebruary 29, 2024 5 Date Cusip/Id Description Transaction Type Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction Total 2/1/2024 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27)PURCHASE 2/1/2024 1,400,000 485.100%7/25/2028 99.75 1,396,528.00 1,131.90 1,397,659.90 2/1/2024 46625HJT8 JPMORGAN CHASE & CO 3.875% 01FEB2024 BOND INTEREST 2/1/2024 1,400,000 387.500%2/1/2024 - - 27,125.00 27,125.00 2/1/2024 46625HJT8 JPMORGAN CHASE & CO 3.875% 01FEB2024 REDEMPTION 2/1/2024 1,400,000 387.500%2/1/2024 100.00 1,400,000.00 - 1,400,000.00 2/2/2024 Cash-USD Cash-USD SHORT TERM INVESTMENT FUND INCOME 2/2/2024 617 0.000%100.00 - - 617.28 2/5/2024 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27)PURCHASE 2/5/2024 1,000,000 454.800%7/22/2028 98.92 989,200.00 1,642.33 990,842.33 2/5/2024 91159HHV5 US BANCORP 3.375% 05FEB2024 CALLABLE BOND INTEREST 2/5/2024 1,000,000 337.500%2/5/2024 - - 16,875.00 16,875.00 2/5/2024 91159HHV5 US BANCORP 3.375% 05FEB2024 CALLABLE REDEMPTION 2/5/2024 1,000,000 337.500%2/5/2024 100.00 1,000,000.00 - 1,000,000.00 2/12/2024 3137EAEP0 FREDDIE MAC 1.5% 12FEB2025 BOND INTEREST 2/12/2024 1,000,000 150.000%2/12/2025 - - 7,500.00 7,500.00 2/15/2024 438516BW5 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24)BOND INTEREST 2/15/2024 1,000,000 230.000%8/15/2024 - - 11,500.00 11,500.00 2/15/2024 912810FE3 USA TREASURY 5.5% 15AUG2028 BOND INTEREST 2/15/2024 1,200,000 550.000%8/15/2028 - - 33,000.00 33,000.00 2/23/2024 91282CHB0 USA TREASURY 3.625% 15MAY2026 PURCHASE 2/23/2024 1,175,000 362.500%5/15/2026 98.04 1,151,962.92 11,701.58 1,163,664.50 2/23/2024 3133EPBM6 FEDERAL FARM CREDIT BANK 4.125% 23AUG2027 BOND INTEREST 2/23/2024 600,000 412.500%8/23/2027 - - 12,375.00 12,375.00 2/23/2024 3133EKMX1 FEDERAL FARM CREDIT BANK 2.23% 23FEB20BOND INTEREST 2/23/2024 1,000,000 223.000%2/23/2024 - - 11,150.00 11,150.00 2/23/2024 3133EKMX1 FEDERAL FARM CREDIT BANK 2.23% 23FEB20REDEMPTION 2/23/2024 1,000,000 223.000%2/23/2024 100.00 1,000,000.00 - 1,000,000.00 2/26/2024 713448DF2 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)BOND INTEREST 2/24/2024 1,000,000 285.000%2/24/2026 - - 14,250.00 14,250.00 2/26/2024 3135G05X7 FANNIE MAE 0.375% 25AUG2025 BOND INTEREST 2/25/2024 1,200,000 37.500%8/25/2025 - - 2,250.00 2,250.00 2/26/2024 3130ALH98 FEDERAL HOME LOAN BANK 0.25% 26FEB2024 CALLABLE BOND INTEREST 2/26/2024 1,000,000 25.000%2/26/2024 - - 1,250.00 1,250.00 2/26/2024 3130ALH98 FEDERAL HOME LOAN BANK 0.25% 26FEB2024 CALLABLE REDEMPTION 2/26/2024 1,000,000 25.000%2/26/2024 100.00 1,000,000.00 - 1,000,000.00 2/27/2024 3130AXB31 FEDERAL HOME LOAN BANK 4.875% 13MAR2026 PURCHASE 2/27/2024 1,000,000 487.500%3/13/2026 100.31 1,003,060.00 21,395.83 1,024,455.83 Town of Los Gatos Investment Transaction Detail February 29, 2024 6 Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance 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 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27)7/222028 1,000,000$ A A3 4 3 4 4 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL28)7/25/2028 1,400,000$ A-A1 3 1 3 4 Total/Average 13,900,000$ 3.1 2.0 3.0 3.4 *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 February 29, 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 - - - - - 1,556,614 Unassigned Fund Balances: 111 Other Unassigned Fund Balance Reserve (Pre YE distribution)- (865,635) 5,193,178 (5,906,456) - - (1,578,913) General Fund Total 29,528,304 (865,635) 5,193,178 (5,906,456) - - 27,949,391 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. Feb 2024 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Jan Estimated Fund Balance 2/29/2024* 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 38,366 29,996 (17,768) - - 680,437 231-236 Landscape & Lighting Districts 176,964 2,561 260 (257) - - 179,528 251 Los Gatos Theatre 74,991 33,584 9,830 (5,807) - - 112,598 711-716 Library Trusts 530,173 72,479 - (1,874) - - 600,778 Special Revenue Total 1,578,624 146,990 40,086 (25,706) - - 1,739,994 CAPITAL PROJECTS 411 GFAR - General Fund Appropriated Reserve 21,725,837 (1,097,732) 83,091 (424,506) - - 20,286,690 412 Community Center Development - 866,281 - - - - 866,281 421 Grant Funded Projects (406,890) 98,414 - (62,638) - - (371,114) 461-463 Storm Basin Projects 3,218,331 79,996 84,660 - - - 3,382,987 471 Traffic Mitigation Projects 431,079 - - - - - 431,079 472 Utility Undergrounding Projects 3,438,996 12,965 - - - - 3,451,961 481 Gas Tax Projects 1,671,245 (645,652) 153,906 - - - 1,179,499 Capital Projects Total 30,078,598 (685,728) 321,657 (487,144) - - 29,227,383 INTERNAL SERVICE FUNDS 611 Town General Liability 212,022 3,189 - - - - 215,211 612 Workers Compensation 514,813 (441,195) 37,099 (7,238) - - 103,479 621 Information Technology 2,474,618 (176,745) 20,383 (4,334) - - 2,313,922 631 Vehicle & Equipment Replacement 2,413,719 502,162 - (35,843) - - 2,880,038 633 Facility Maintenance 927,700 132,136 5,933 (84,028) - - 981,741 Internal Service Funds Total 6,542,872 19,547 63,415 (131,443) - - 6,494,391 Trust/Agency 942 RDA Successor Agency (6,187,789) (1,665,699) 1,894,550 (1,894,667) - - (7,853,605) Trust/Agency Fund Total (6,187,789) (1,665,699) 1,894,550 (1,894,667) - - (7,853,605) Total Town 61,540,609 7,512,886 (8,445,416) - - 57,557,554 * 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 $682,423.43 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Jan Feb 2024 Estimated Fund Balance 2/29/2024* 9