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05 Staff Report. Financial and Investment Report March 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: 05/21/2024 DATE: May 14, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Receive the Monthly Financial and Investment Report for March 2024 RECOMMENDATION: Receive the Monthly Financial and Investment Report for March 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 March 2024 Monthly Financial and Investment Report which fulfills this requirement. The March 2024 Monthly Financial and Investment Report was received by Finance Commission on May 13, 2024. DISCUSSION: The March 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 March 2024 DATE: May 14, 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 March 31, 2024, the Town’s financial position (Assets $87.55M, Liabilities $29.10M, and Fund Equity $58.45M) remains strong and there are no issues meeting financial obligations in the near future. As of March 31, 2024, the Town’s weighted portfolio yield for investments under management was 4.34% which was 11 basis points above the Local Agency Investment Fund (LAIF) yield of 4.23% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 226 days versus the Town’s longer WAM of 653 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 4.34% at the close of March was 2 basis points higher when compared to the prior month’s return of 4.32% reported as of February 29, 2024. Since March 2023, LAIF yields had climbed from 283 basis points (2.83%) to 423 basis points (4.23%) through the end of March 2024. Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long term maturities in the four-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%. PAGE 3 OF 3 SUBJECT: Monthly Financial and Investment Report for March 2024 DATE: May 14, 2024 DISCUSSION (continued): The US economy added 275,000 jobs in February, above consensus for 200,000. The prior two months were revised down by 160,000. The unemployment rate rose from 3.7% to 3.9% the highest since late 2020 while the labor force participation rate was unchanged 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 March 2024. Attachment: 1. Financial and Investment Report (March 2024) Weighted Average YTM Portfolio Yield on Investments under Management 4.34% Weighted Average Maturity (days)653 This Month Last Month One year ago Portfolio Allocation & Treasurer's Cash Balances $74,499,958 $71,152,030 $70,079,332 Cert. of Participation 2002 Lease Payment Fund Managed Investments $49,565,242 Local Agency Investment Fund $16,391,357 Reconciled Demand Deposit Balances $8,543,360 Portfolio Allocation & Treasurer's Cash Balances $74,499,958 Benchmarks/ References: Town's Average Yield 4.34%4.32%2.71% LAIF Yield for month 4.23%4.12%2.83% 3 mo. Treasury 5.38%5.39%4.80% 6 mo. Treasury 5.33%5.32%4.91% 2 yr. Treasury 4.62%4.62%4.03% 5 yr. Treasury (most recent)4.21%4.25%3.58% 10 Yr. Treasury 4.20%4.25%3.47% Town of Los Gatos Summary Investment Information March 31, 2024 0 -1 year41% 1 -2 years 17% 2 -3 years 12% 3 -5 years 30% Portfolio Maturity Profile Compliance:The Town's investments are in compliance with the Town's investment policy dated February 21, 2023and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Month YTD Cash & Investment Balances - Beginning of Month/Period 71,152,030.35$ 78,384,947.79$ Receipts 12,047,260.22 56,780,334.37 Disbursements (8,699,332.81)(60,665,324.40) Cash & Investm Cash & Investment Balances - End of Month/Period $74,499,957.76 $74,499,957.76 Portfolio Allocation Amount % of Portfolio Max. % or $ Allowed per State Law or Policy BNY MM $38,631.37 0.06%20% of Town Portfolio US Treasury Notes $19,802,509.31 30.02%No Max. on US Treasuries Government Agency Debenture Notes $15,867,942.90 24.06%No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,856,158.01 21.01%30% of Town Portfolio Local Agency Investment Fund $16,391,356.50 24.85%$75 M per State Law Subtotal - InSubtotal - Investments 65,956,598.09 100.00% Reconciled Demand Deposit Balances 8,543,359.67 Total Portfolio Allocation & Treasurer's Cash Balances $74,499,957.76 0.0401 0.0388 Town of Los Gatos Portfolio Allocation & Treasurer's Cash Balances March 31, 2024 BNY MM0.06% US Treasury Notes 30.02% Government Agency Debenture Notes24.06% Corporate Medium Term Bonds21.01% Local Agency Investment Fund 24.85% Portfolio Investment Allocation $70.1 M $74.5 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 $90.0 M Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Treasurer's Fund Balances 2 March 2024 March 2024 March 2024 Beginning Deposits Interest/Ending Balance Realized Gain/Adj.Earnings Withdrawals Balance Non-Treasury Funds: Cert. of Participation 2002 Ser A Reserve Fund 689,178.32$ -$ 2,732.05$ -$ 691,910.37$ Note 1 Cert. Of Participation 2010 Ser Lease Payment Fund 100.71 - 0.29 - 101.00 Note 1 Cert. of Participation 2002 Ser A Lease Payment Fund 29,294.25 - 7.95 - 29,302.20 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,365,280.82 - 5,640.53 - 1,370,921.35 Note 2 Total Restricted Funds:2,083,854.10$ -$ 8,380.82$ -$ 2,092,234.92$ CEPPT IRS Section 115 Trust 2,147,176.12 - 33,566.98 - 2,180,743.10$ Note 3 Grand Total COP's and CEPPT Trust 4,231,030.22$ -$ 41,947.80$ -$ 4,272,978.02$ 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 March 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 183,453.40$ March 2024 206,361.80$ April 2024 - May 2024 - June 2024 - 1,487,336.38$ Town of Los Gatos Statement of Interest Earned March 31, 2024 4 Original 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 MaturityApple 037833DB3 Corporate Bond 2.90%12/20/2022 1,300,000.00 1,228,591.00 (71,409.00)1,230,398.00 1,807.00 6/21/2027 4.19%46,287.22$ 28,170.97$ 40,349.05$ 1177Home Depot 437076BM3 Corporate Bond 3.00%8/4/2022 1,000,000.00 991,960.00 (8,040.00)964,850.00 (27,110.00)1/1/2026 3.04%34,750.00$ 29,252.66$ 24,377.22$ 641US Treasury 912828ZW3 US Treasury Note 0.25%8/9/2022 350,000.00 322,096.88 (27,903.12)330,463.00 8,366.12 6/30/2025 3.16%1,217.39$ 9,366.72$ 7,925.68$ 456IBM 459200JY8 Corporate Bond 3.00%3/25/2021 1,000,000.00 1,071,040.00 71,040.00 996,540.00 (74,500.00)5/15/2024 0.71%79,166.67$ 16,751.96$ 5,570.48$ 45FFCB3133EN5V8Gov. Agency Debenture 4.13%1/17/2023 236,000.00 239,174.20 3,174.20 233,923.20 (5,251.00)1/11/2027 3.76%9,572.75$ 4,016.30$ 6,734.65$ 1016US Treasury 91282CBT7 US Treasury Note 0.75%9/30/2022 800,000.00 712,565.18 (87,434.82)741,440.00 28,874.82 3/31/2026 4.14%9,000.00$ 23,165.06$ 23,334.77$ 730FFCB3133ENP95Gov. Agency Debenture 4.25%9/30/2022 900,000.00 900,939.60 939.60 892,251.00 (8,688.60)9/30/2025 4.14%57,375.00$ 28,374.86$ 28,582.74$ 548American Honda 02665WCZ2 Corporate Bond 2.40%11/27/2019 1,000,000.00 1,012,410.01 12,410.01 992,570.00 (19,840.01)6/27/2024 2.12%108,733.34$ 76,483.79$ 16,043.51$ 88JP Morgan Chase 46625HRS1 Corporate Bond 3.20%9/23/2022 500,000.00 474,660.00 (25,340.00)481,235.00 6,575.00 3/15/2026 4.70%19,644.44$ 17,865.15$ 17,546.13$ 714Honeywell Int'l.438516BW5 Corporate Bond 2.30%11/20/2019 1,000,000.00 1,014,660.00 14,660.00 987,630.00 (27,030.00)7/15/2024 1.64%96,983.33$ 71,679.55$ 14,955.90$ 106Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2.85%2/23/2021 1,000,000.00 1,077,370.00 77,370.00 996,780.00 (80,590.00)5/17/2024 0.44%77,900.00$ 10,677.18$ 3,426.17$ 47FNMA3135G0V75Gov. Agency Debenture 1.75%10/17/2019 1,100,000.00 1,105,833.30 5,833.30 1,089,968.00 (15,865.30)7/2/2024 1.63%81,331.25$ 66,718.86$ 13,570.77$ 93FFCB3133EKQA7Gov. Agency Debenture 2.08%10/21/2019 1,000,000.00 1,019,780.00 19,780.00 986,260.00 (33,520.00)9/10/2024 1.66%91,231.11$ 61,888.40$ 12,625.60$ 163FHLB3135G05X7Gov. Agency Debenture 0.38%6/10/2022 1,200,000.00 1,102,952.40 (97,047.60)1,127,892.00 24,939.60 8/25/2025 3.04%7,687.50$ 36,626.55$ 26,161.82$ 512US Treasury 912828ZL7 US Treasury Note 0.38%4/12/2022 1,700,000.00 1,583,927.57 (116,072.43)1,618,247.00 34,319.43 4/30/2025 2.72%9,879.49$ 54,017.06$ 33,456.51$ 395FHLB3130AQF65Gov. Agency Debenture 1.25%11/30/2022 1,300,000.00 1,160,559.40 (139,440.60)1,194,960.00 34,400.60 12/21/2026 4.15%17,197.92$ 29,385.32$ 38,117.76$ 995US Treasury 912828X70 US Treasury Note 2.00%12/30/2019 1,000,000.00 1,010,589.29 10,589.29 997,300.00 (13,289.29)4/30/2024 1.75%76,703.30$ 61,478.37$ 13,228.91$ 30US Treasury 912828XT2 US Treasury Note 2.00%10/31/2019 1,000,000.00 1,015,667.41 15,667.41 994,600.00 (21,067.41)5/31/2024 1.64%81,639.34$ 60,792.37$ 12,494.70$ 61FHLB3130APJH9Gov. Agency Debenture 1.00%1/17/2023 1,000,000.00 907,010.00 (92,990.00)929,950.00 22,940.00 10/28/2026 4.17%8,354.17$ 15,544.14$ 26,064.86$ 941FFCB3133EN5N6Gov. Agency Debenture 4.00%2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,678,665.00 (28,067.00)1/6/2028 3.91%61,955.56$ 25,921.64$ 50,200.36$ 1376Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38%5/1/2023 750,000.00 689,032.50 (60,967.50)702,652.50 13,620.00 9/23/2025 3.97%2,515.62$ 4,638.18$ 21,258.35$ 541American Honda 02665WED9 Corporate Bond 4.70%5/11/2023 600,000.00 608,856.00 8,856.00 597,792.00 (11,064.00)1/12/2028 4.34%18,878.33$ 3,603.61$ 19,819.86$ 1382US Treasury 91282CEF4 US Treasury Note 2.50%6/9/2023 1,500,000.00 1,416,626.12 (83,373.88)1,420,725.00 4,098.88 3/31/2027 4.09%30,327.87$ 3,416.23$ 44,736.40$ 1095US Treasury 91282CGA3 US Treasury Note 4.00%6/20/2023 2,100,000.00 2,080,558.59 (19,441.41)2,074,569.00 (5,989.59)12/15/2025 4.40%40,852.46$ 2,515.25$ 69,169.29$ 624Colgate-Palmolive 194162AR4 Corporate Bond 4.60%7/14/2023 500,000.00 504,655.00 4,655.00 505,465.00 810.00 2/1/2028 4.37%14,502.79$ -$ 15,716.00$ 1402FannieMae3135G06G3Gov. Agency Debenture 0.50%7/14/2023 500,000.00 455,157.00 (44,843.00)467,290.00 12,133.00 11/7/2025 4.63%784.72$ -$ 15,605.88$ 586FFCB3133EPQC2Gov. Agency Debenture 4.63%7/17/2023 500,000.00 501,957.50 1,957.50 499,345.00 (2,612.50)7/17/2026 4.48%11,562.50$ -$ 15,885.09$ 838FFCB3133EPBM6Gov. 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$ -$ 18,355.23$ 1240PNC Bank 69353RFJ2 Corporate Bond 3.25%7/25/2023 1,000,000.00 921,490.00 (78,510.00)935,270.00 13,780.00 12/23/2027 5.23%15,979.17$ -$ 34,436.14$ 1362US Treasury 91282CFU0 US Treasury Note 4.13%7/31/2023 1,300,000.00 1,290,660.60 (9,339.40)1,290,250.00 (410.60)10/31/2027 4.31%13,406.25$ -$ 37,315.31$ 1309Toyota Motor Credit 89236TKL8 Corporate Bond 5.45%8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,630,992.00 13,824.00 11/10/2027 5.16%18,166.67$ -$ 49,875.40$ 1319US Treasury 912810FE3 US Treasury Note 5.50%10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,260,048.00 21,840.86 8/15/2028 4.76%24,211.96$ -$ 28,679.96$ 1598Pepsico Inc 713448DF2 Corporate Bond 2.85%10/16/2023 1,000,000.00 947,570.00 (52,430.00)965,560.00 17,990.00 11/24/2025 5.24%10,133.33$ -$ 24,410.91$ 603FFCB3133EPUW3Gov. Agency Debenture 4.75%10/13/2023 1,000,000.00 994,338.00 (5,662.00)1,003,440.00 9,102.00 9/1/2026 4.96%18,208.33$ -$ 23,036.51$ 884Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50%10/13/2023 1,000,000.00 951,540.00 (48,460.00)969,430.00 17,890.00 2/12/2025 5.32%4,958.33$ -$ 23,867.86$ 318US Treasury 91282CEW7 US Treasury Note 3.25%10/16/2023 1,000,000.00 950,039.06 (49,960.94)966,090.00 16,050.94 6/30/2027 4.73%6,711.96$ -$ 21,036.51$ 1186US Treasury 91282CEN7 US Treasury Note 2.75%10/31/2023 1,300,000.00 1,214,336.39 (85,663.61)1,238,458.00 24,121.61 4/30/2027 4.82%-$ -$ 25,084.12$ 1125US Treasury 912828YV6 US Treasury Note 1.50%11/15/2023 700,000.00 673,667.97 (26,332.03)683,067.00 9,399.03 11/30/2024 5.26%430.33$ -$ 13,409.57$ 244US Treasury 91282CAB7 US Treasury Note 0.25%11/15/2023 675,000.00 623,900.39 (51,099.61)635,053.50 11,153.11 7/31/2025 4.92%353.09$ -$ 11,852.38$ 487US Treasury 91282CGU9 US Treasury Note 3.88%11/30/2023 1,000,000.00 983,515.62 (16,484.38)988,790.00 5,274.38 3/31/2025 5.17%12,916.67$ -$ 17,081.61$ 365US Treasury 91282CCH2 US Treasury Note 1.25%12/21/2023 900,000.00 798,647.55 (101,352.45)795,024.00 (3,623.55)6/30/2028 3.99%305.71$ -$ 9,305.75$ 1552FNMA3135G0Q22Gov. Agency Debenture 1.88%12/21/2023 900,000.00 845,676.00 (54,324.00)843,957.00 (1,719.00)9/24/2026 4.22%4,359.38$ -$ 10,112.70$ 907US Treasury 91282CFB2 US Treasury Note 2.75%1/2/2024 1,000,000.00 960,354.91 (39,645.09)950,080.00 (10,274.91)7/31/2027 3.95%2,167.12$ -$ 9,407.17$ 1217US Treasury 91282CHE4 US Treasury Note 3.63%1/17/2024 1,800,000.00 1,775,185.72 (24,814.28)1,755,288.00 (19,897.72)8,557.37 5/31/2028 3.97%(8,557.37)$ -$ 14,379.30$ 1522JP Morgan Chase 46647PDG8 Corporate Bond 4.85%2/1/2024 1,400,000.00 1,396,528.00 (3,472.00)1,387,834.00 (8,694.00)1,131.90 7/25/2027 4.93%(1,131.90)$ -$ 11,139.18$ 1211US Bancorp 91159HJF8 Corporate Bond 4.55%2/5/2024 1,000,000.00 989,200.00 (10,800.00)980,380.00 (8,820.00)1,642.33 7/22/2027 4.89%(1,642.33)$ -$ 7,323.46$ 1208Treasury91282CHB0US Treasury Note 3.63%2/23/2024 1,175,000.00 1,151,962.92 (23,037.08)1,152,005.25 42.33 11,701.58 5/15/2026 4.56%(11,701.58)$ -$ 5,367.44$ 775FHLB3130AXB31Gov. Agency Debenture 4.88%2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,003,680.00 620.00 3/13/2026 4.72%2,979.17$ -$ 4,271.99$ 712FFCB3133EP5U5Gov. Agency Debenture 4.13%3/28/2024 1,700,000.00 1,687,981.00 (12,019.00)1,690,004.00 2,023.00 1,558.33 3/20/2029 4.28%(1,558.33)$ -$ 596.20$ 1815 Subtotal 50,786,000.00$ 49,526,610.22$ (1,259,389.78)$ 49,452,353.45$ (74,256.77)$ 24,591.51$ 1,221,786.28$ 742,350.18$ 1,017,303.15$ BNY MM Money Market 38,631.37 38,631.37 0.00 0.00%1LAIFState Investment Pool 16,391,356.50 16,296,143.49 (95,213.01)4.23%377,767.72 1 65,956,598.09 $65,787,128.31 ($169,469.78)$24,591.51 1,221,786.28$ 742,350.18$ 1,395,070.87$ 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$ FFCB 3133EMBE1 Gov. Agency Debenture 0.30%10/8/2020 1,600,000.00 1,598,000.00 (2,000.00)3/28/2024 0.34%16,653.34$ 14,655.57$ 4,006.35$ Total Investments "Matured"92,265.50$ Total Interest FY 23_24 Matured and Current 1,487,336.38$ Maturity Profile Amount Percent0-1 year 27,366,061.47$ 41%1-2 years $11,175,814.93 17%2-3 years $7,929,869.32 12%3-5 years 19,484,852.37$ 30%$65,956,598.09 100% Town of Los GatosInvestment ScheduleMarch 31, 2024 5 Date Cusip/Id Description Transaction Type Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction Total 3/1/2024 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28)BOND INTEREST 3/1/2024 500,000 4.600%3/1/2028 - - 11,500.00 11,500.00 3/1/2024 3133EPUW3 FEDERAL FARM CREDIT BANK 4.75% 01SEP2026 BOND INTEREST 3/1/2024 1,000,000 4.750%9/1/2026 - - 23,750.00 23,750.00 3/4/2024 Cash-USD Cash-USD SHORT TERM INVESTMENT FUND INCOME 3/4/2024 602.92 0.000%100.00 - - 602.92 3/11/2024 3133EKQA7 FEDERAL FARM CREDIT BANK 2.08% 10SEP2024 BOND INTEREST 3/10/2024 1,000,000 2.080%9/10/2024 - - 10,400.00 10,400.00 3/12/2024 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27)BOND INTEREST 3/12/2024 1,300,000 2.900%9/12/2027 - - 18,850.00 18,850.00 3/13/2024 3130AXB31 FEDERAL HOME LOAN BANK 4.875% 13MAR2026 BOND INTEREST 3/13/2024 1,000,000 4.875%3/13/2026 - - 23,562.50 23,562.50 3/25/2024 3137EAEX3 FREDDIE MAC 0.375% 23SEP2025 BOND INTEREST 3/23/2024 750,000 0.375%9/23/2025 - - 1,406.25 1,406.25 3/25/2024 3135G0Q22 FANNIE MAE 1.875% 24SEP2026 BOND INTEREST 3/24/2024 900,000 1.875%9/24/2026 - - 8,437.50 8,437.50 3/28/2024 3133EP5U5 FEDERAL FARM CREDIT BANK 4.125% 20MAR2029 PURCHASE 3/28/2024 1,700,000 4.125%3/20/2029 99.29 1,687,981.00 1,558.33 1,689,539.33 3/28/2024 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 CALLABLE BOND INTEREST 3/28/2024 1,600,000 0.300%3/28/2024 - - 2,400.00 2,400.00 3/28/2024 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 CALLABLE REDEMPTION 3/28/2024 1,600,000 0.300%3/28/2024 100.00 1,600,000.00 - 1,600,000.00 Town of Los GatosInvestment Transaction Detail March 31, 2024 6 Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance IBM CORP 3.0% 15MAY2024 5/15/2024 1,000,000$ A-A3 2 1 2 4 CATERPILLAR FIN SERVICES 2.85% 17MAY24 5/17/2024 1,000,000$ A A2 4 5 3 4 AMERICAN HONDA FINANCE 2.4% 27JUN2024 6/27/2024 1,000,000$ A-A3 3 3 3 3 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24)8/15/2024 1,000,000$ A A2 4 3 4 4 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)2/24/2026 1,000,000$ A+A1 2 2 2 3 HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026)4/1/2026 1,000,000$ A A2 2 3 2 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 4 1 4 5 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000$ A+A1 4 2 3 4 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000$ A-A3 3 3 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 3 3 4 3 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 2.3 2.9 3.6 *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 March 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 - - - - - 1,556,614 Unassigned Fund Balances: 111 Other Unassigned Fund Balance Reserve (Pre YE distribution)- (964,810) 4,006,016 (4,009,957) - - (968,751) General Fund Total 29,528,304 (964,810) 4,006,016 (4,009,957) - - 28,559,553 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. Mar 2024 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Feb Estimated Fund Balance 3/31/2024* 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 50,593 29,996 (17,874) - - 692,558 231-236 Landscape & Lighting Districts 176,964 2,564 - (672) - - 178,856 251 Los Gatos Theatre 74,991 37,607 9,830 (194) - - 122,234 711-716 Library Trusts 530,173 70,432 - (5,148) - - 595,457 Special Revenue Total 1,578,624 161,196 39,826 (23,888) - - 1,755,758 CAPITAL PROJECTS 411 GFAR - General Fund Appropriated Reserve 21,725,837 (1,399,369) 87,279 (186,014) - - 20,227,733 412 Community Center Development - 866,281 - - - - 866,281 421 Grant Funded Projects (406,890) 35,775 - (232,742) - - (603,857) 461-463 Storm Basin Projects 3,218,331 167,517 3,952 - - - 3,389,800 471 Traffic Mitigation Projects 431,079 - - - - - 431,079 472 Utility Undergrounding Projects 3,438,996 20,806 794 - - - 3,460,596 481 Gas Tax Projects 1,671,245 (491,746) 136,769 - - - 1,316,268 Capital Projects Total 30,078,598 (800,736) 228,794 (418,756) - - 29,087,900 INTERNAL SERVICE FUNDS 611 Town General Liability 212,022 3,189 - (18,165) - - 197,046 612 Workers Compensation 514,813 (517,420) 17,333 (66,412) - - (51,686) 621 Information Technology 2,474,618 (153,622) 165,303 (23,629) - - 2,462,670 631 Vehicle & Equipment Replacement 2,413,719 466,319 256,685 - - - 3,136,723 633 Facility Maintenance 927,700 55,580 235,808 (65,513) - - 1,153,575 Internal Service Funds Total 6,542,872 (145,954) 675,129 (173,719) - - 6,898,328 Trust/Agency 942 RDA Successor Agency (6,187,789) (1,665,816) (117) - - (7,853,722) Trust/Agency Fund Total (6,187,789) (1,665,816) - (117) - - (7,853,722) Total Town 61,540,609 4,949,765 (4,626,437) - - 58,447,817 * 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 $697,897.51 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year Carryforward 7/1/2023 Increase/ (Decrease) July - Feb Mar 2024 Estimated Fund Balance 3/31/2024* 9