Loading...
04 Staff Report. Financial and Investment Report July 2024 with attachments PREPARED BY: Eric Lemon Finance and Accounting Manager Reviewed by: Interim 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: 09/17/2024 ITEM NO: 4 DATE: September 10, 2024 TO: Mayor and Town Council FROM: Katy Nomura, Interim Town Manager SUBJECT: Receive the Monthly Financial and Investment Report for July 2024 RECOMMENDATION: Receive the Monthly Financial and Investment Report for July 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 July 2024 Monthly Financial and Investment Report which fulfills this requirement. The July 2024 Monthly Financial and Investment Report was received by the Finance Commission at its September 9, 2024 meeting. DISCUSSION: The July 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 July 2024 DATE: September 10, 2024 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 July 31, 2024, the Town’s financial position (Assets $89.47M, Liabilities $31.89M, and Fund Equity $57.58M) remains strong and the Town has sufficient funds to meet the cash demands for the next six months. As of July 31, 2024, the Town’s weighted portfolio yield for investments under management was 4.46% which was 6 basis points below the Local Agency Investment Fund (LAIF) yield of 4.52% for the same reporting period. As of June 30, 2024, the LAIF portfolio’s weighted average maturity (WAM) is 217 days versus the Town’s longer July 31, 2024 WAM of 673 days. The longer 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 4.46% at the close of July was 1 basis point higher when compared to the prior month’s return of 4.45% reported as of June 30, 2024. Since July 2023, LAIF yields had climbed from 331 basis points (3.31%) to 452 basis points (4.52%) through the end of July 2024. Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long term maturities in the one-to-two-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%. On May 1, 2024, the Federal Reserve Chair commented that the 2% target may take longer than expected to achieve and the central bank is prepared to keep rates unchanged as long as appropriate. PAGE 3 OF 3 SUBJECT: Monthly Financial and Investment Report for July 2024 DATE: September 10, 2024 The labor market remained relatively robust. The unemployment rate increased slightly from 4% to 4.1% remaining historically low. Meanwhile, wage growth fell from 4.1% to 3.9%. 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 July 2024. Attachments: 1. Financial and Investment Report (July 2024) Weighted Average YTM Portfolio Yield on Investments under Management 4.46% Weighted Average Maturity (days)673 This Month Last Month One year ago Portfolio Allocation & Treasurer's Cash Balances $72,350,241 $81,368,410 $71,462,894 Managed Investments $49,892,459 Local Agency Investment Fund $16,702,446 Reconciled Demand Deposit Balances $5,755,337 Portfolio Allocation & Treasurer's Cash Balances $72,350,241 Benchmarks/ References: Town's Average Yield 4.46%4.45%3.53% LAIF Yield for month 4.52%4.48%3.31% 3 mo. Treasury 5.29%5.36%5.42% 6 mo. Treasury 5.09%5.33%5.47% 2 yr. Treasury 4.26%4.75%4.88% 5 yr. Treasury (most recent)3.91%4.38%4.18% 10 Yr. Treasury 4.03%4.40%3.96% Town of Los Gatos Summary Investment Information July 31, 2024 0 -1 year 36% 1 -2 years20% 2 -3 years18% 3 -5 years26% Portfolio Maturity Profile Compliance:The Town's investments are in compliance with the Town's investment policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. ATTACHMENT 1 Month YTD Cash & Investment Balances - Beginning of Month/Period 81,368,409.88$ 81,368,409.88$ Receipts 3,843,628.10 3,843,628.10 Disbursements (12,861,796.74)(12,861,796.74) Cash & Investm Cash & Investment Balances - End of Month/Period $72,350,241.24 $72,350,241.24 Portfolio Allocation Amount % of Portfolio Max. % or $ Allowed per State Law or Policy BNY MM $232,771.24 0.35%20% of Town Portfolio US Treasury Notes $20,054,713.77 30.11%No Max. on US Treasuries Government Agency Debenture Notes $15,913,075.60 23.90%No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,691,898.00 20.56%30% of Town Portfolio Local Agency Investment Fund $16,702,445.78 25.08%$75 M per State Law Subtotal - InSubtotal - Investments 66,594,904.39 100.00% Reconciled Demand Deposit Balances 5,755,336.85 Total Portfolio Allocation & Treasurer's Cash Balances $72,350,241.24 0.0401 0.0388 Town of Los Gatos Portfolio Allocation & Treasurer's Cash Balances July 31, 2024 BNY MM 0.35% US Treasury Notes30.11% Government Agency Debenture Notes23.90% Corporate Medium Term Bonds 20.56% Local Agency Investment Fund25.08% Portfolio Investment Allocation $71.5 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 $90.0 M Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Treasurer's Fund Balances 2 July 2024 July 2024 July 2024 Beginning Deposits Interest/Ending Balance Realized Gain/Adj.Earnings Withdrawals Balance Non-Treasury Funds: Cert. of Participation 2002 Ser A Reserve Fund 700,282.13$ -$ 2,750.02$ -$ 703,032.15$ Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 102.07 1,134,060.43 0.36 - 1,134,162.86 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 29,656.86 545,843.14 116.43 - 575,616.43 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,388,894.83 - 5,903.87 - 1,394,798.70 Note 2 Total Restricted Funds:2,118,935.89$ 1,679,903.57$ 8,770.68$ -$ 3,807,610.14$ CEPPT IRS Section 115 Trust 2,188,658.95 - 55,797.70 - 2,244,456.65$ Note 3 Grand Total COP's and CEPPT Trust 4,307,594.84$ 1,679,903.57$ 64,568.38$ -$ 6,052,066.79$ 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 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 July 31, 2024 3 July 2024 247,221.75$ August 2024 -$ September 2024 -$ October 2024 -$ November 2024 -$ December 2024 -$ January 2025 -$ February 2025 -$ March 2025 -$ April 2025 -$ May 2025 -$ June 2025 -$ 247,221.75$ Town of Los Gatos Statement of Interest Earned July 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 Maturity Apple 037833DB3 Corporate Bond 2.90%12/20/2022 1,300,000.00 1,228,591.00 (71,409.00)1,244,477.00 15,886.00 6/21/2027 4.19%46,287.22$ 81,871.88$ 4,548.44$ 1055Home Depot 437076BM3 Corporate Bond 3.00%8/4/2022 1,000,000.00 991,960.00 (8,040.00)973,170.00 (18,790.00)1/1/2026 3.04%49,750.00$ 61,696.52$ 2,747.98$ 519US Treasury 912828ZW3 US Treasury Note 0.25%8/9/2022 350,000.00 322,096.88 (27,903.12)335,888.00 13,791.12 6/30/2025 3.16%1,654.89$ 19,915.08$ 893.44$ 334FFCB3133EN5V8Gov. Agency Debenture 4.13%1/17/2023 236,000.00 239,174.20 3,174.20 235,454.84 (3,719.36)1/11/2027 3.76%14,440.25$ 12,979.52$ 759.18$ 894 US Treasury 91282CBT7 US Treasury Note 0.75%9/30/2022 800,000.00 712,565.18 (87,434.82)752,656.00 40,090.82 3/31/2026 4.14%9,000.00$ 54,221.52$ 2,630.46$ 608FFCB3133ENP95Gov. Agency Debenture 4.25%9/30/2022 900,000.00 900,939.60 939.60 895,905.00 (5,034.60)9/30/2025 4.14%57,375.00$ 66,415.88$ 3,222.05$ 426JP Morgan Chase 46625HRS1 Corporate Bond 3.20%9/23/2022 500,000.00 474,660.00 (25,340.00)485,645.00 10,985.00 3/15/2026 4.70%27,644.44$ 41,217.45$ 1,977.93$ 592Honeywell Int'l.438516BW5 Corporate Bond 2.30%11/20/2019 1,000,000.00 1,014,660.00 14,660.00 998,730.00 (15,930.00)8/15/2024 1.64%96,983.33$ 91,844.87$ 1,690.73$ 15FFCB3133EKQA7Gov. Agency Debenture 2.08%10/21/2019 1,000,000.00 1,019,780.00 19,780.00 996,150.00 (23,630.00)9/10/2024 1.66%91,231.11$ 78,691.92$ 1,423.25$ 41FHLB3135G05X7Gov. Agency Debenture 0.38%6/10/2022 1,200,000.00 1,102,952.40 (97,047.60)1,146,228.00 43,275.60 8/25/2025 3.04%7,687.50$ 71,445.55$ 2,949.15$ 390US Treasury 912828ZL7 US Treasury Note 0.38%4/12/2022 1,700,000.00 1,583,927.57 (116,072.43)1,643,526.00 59,598.43 4/30/2025 2.72%13,066.99$ 98,544.63$ 3,771.46$ 273FHLB3130AQF65Gov. Agency Debenture 1.25%11/30/2022 1,300,000.00 1,160,559.40 (139,440.60)1,212,848.00 52,288.60 12/21/2026 4.15%25,322.92$ 80,116.59$ 4,296.91$ 873FHLB3130APJH9Gov. Agency Debenture 1.00%1/17/2023 1,000,000.00 907,010.00 (92,990.00)944,260.00 37,250.00 10/28/2026 4.17%13,354.17$ 50,234.10$ 2,938.22$ 819FFCB3133EN5N6Gov. Agency Debenture 4.00%2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,694,458.00 (12,274.00)1/6/2028 3.91%95,955.56$ 92,733.76$ 5,658.95$ 1254Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38%5/1/2023 750,000.00 689,032.50 (60,967.50)713,895.00 24,862.50 9/23/2025 3.97%2,515.62$ 32,931.11$ 2,396.40$ 419American Honda 02665WED9 Corporate Bond 4.70%5/11/2023 600,000.00 608,856.00 8,856.00 601,434.00 (7,422.00)1/12/2028 4.34%32,978.33$ 29,982.05$ 2,234.24$ 1260US Treasury 91282CEF4 US Treasury Note 2.50%6/9/2023 1,500,000.00 1,416,626.12 (83,373.88)1,437,540.00 20,913.88 3/31/2027 4.09%30,327.87$ 62,956.31$ 5,043.01$ 973 US Treasury 91282CGA3 US Treasury Note 4.00%6/20/2023 2,100,000.00 2,080,558.59 (19,441.41)2,083,599.00 3,040.41 12/15/2025 4.40%82,852.46$ 94,573.28$ 7,797.26$ 502Colgate-Palmolive 194162AR4 Corporate Bond 4.60%7/14/2023 500,000.00 504,655.00 4,655.00 504,605.00 (50.00)2/1/2028 4.37%14,502.79$ 21,195.52$ 1,866.65$ 1280FannieMae3135G06G3Gov. Agency Debenture 0.50%7/14/2023 500,000.00 455,157.00 (44,843.00)474,545.00 19,388.00 11/7/2025 4.63%2,034.72$ 21,047.01$ 1,853.57$ 464FFCB3133EPQC2Gov. Agency Debenture 4.63%7/17/2023 500,000.00 501,957.50 1,957.50 502,040.00 82.50 7/17/2026 4.48%23,125.00$ 21,487.97$ 1,908.67$ 716 FFCB 3133EPBM6 Gov. Agency Debenture 4.13%7/14/2023 600,000.00 596,220.00 (3,780.00)598,716.00 2,496.00 8/23/2027 4.29%15,056.25$ 24,754.94$ 2,180.12$ 1118PNC Bank 69353RFJ2 Corporate Bond 3.25%7/25/2023 1,000,000.00 921,490.00 (78,510.00)948,450.00 26,960.00 12/23/2027 5.23%32,229.17$ 46,970.90$ 4,270.08$ 1240US Treasury 91282CFU0 US Treasury Note 4.13%7/31/2023 1,300,000.00 1,290,660.60 (9,339.40)1,300,455.00 9,794.40 10/31/2027 4.31%40,218.75$ 51,232.08$ 4,740.88$ 1187Toyota Motor Credit 89236TKL8 Corporate Bond 5.45%8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,641,824.00 24,656.00 11/10/2027 5.16%61,766.67$ 70,599.88$ 7,059.99$ 1197 US Treasury 912810FE3 US Treasury Note 5.50%10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,269,840.00 31,632.86 8/15/2028 4.76%24,211.96$ 43,179.27$ 4,939.33$ 1476Pepsico Inc 713448DF2 Corporate Bond 2.85%10/16/2023 1,000,000.00 947,570.00 (52,430.00)973,130.00 25,560.00 11/24/2025 5.24%10,133.33$ 37,712.66$ 4,531.37$ 481 FFCB 3133EPUW3 Gov. Agency Debenture 4.75%10/13/2023 1,000,000.00 994,338.00 (5,662.00)1,007,440.00 13,102.00 9/1/2026 4.96%18,208.33$ 35,367.82$ 4,200.78$ 762Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50%10/13/2023 1,000,000.00 951,540.00 (48,460.00)981,320.00 29,780.00 2/12/2025 5.32%4,958.33$ 36,644.18$ 4,352.37$ 196 US Treasury 91282CEW7 US Treasury Note 3.25%10/16/2023 1,000,000.00 950,039.06 (49,960.94)975,820.00 25,780.94 6/30/2027 4.73%22,961.96$ 32,499.52$ 3,904.98$ 1064US Treasury 91282CEN7 US Treasury Note 2.75%10/31/2023 1,300,000.00 1,214,336.39 (85,663.61)1,252,160.00 37,823.61 4/30/2027 4.82%17,875.00$ 40,101.59$ 5,115.84$ 1003US Treasury 912828YV6 US Treasury Note 1.50%11/15/2023 700,000.00 673,667.97 (26,332.03)691,327.00 17,659.03 11/30/2024 5.26%5,680.33$ 22,316.65$ 3,034.28$ 122US Treasury 91282CAB7 US Treasury Note 0.25%11/15/2023 675,000.00 623,900.39 (51,099.61)645,664.50 21,764.11 7/31/2025 4.92%1,196.84$ 19,725.12$ 2,681.92$ 365 US Treasury 91282CGU9 US Treasury Note 3.88%11/30/2023 1,000,000.00 983,515.62 (16,484.38)992,890.00 9,374.38 3/31/2025 5.17%12,916.67$ 29,822.81$ 4,340.41$ 243US Treasury 91282CCH2 US Treasury Note 1.25%12/21/2023 900,000.00 798,647.55 (101,352.45)809,154.00 10,506.45 6/30/2028 3.99%5,930.71$ 17,690.14$ 2,856.22$ 1430FNMA3135G0Q22Gov. Agency Debenture 1.88%12/21/2023 900,000.00 845,676.00 (54,324.00)854,685.00 9,009.00 9/24/2026 4.22%4,359.38$ 19,224.14$ 3,103.90$ 785US Treasury 91282CFB2 US Treasury Note 2.75%1/2/2024 1,000,000.00 960,354.91 (39,645.09)960,900.00 545.09 7/31/2027 3.95%15,917.12$ 19,025.75$ 3,276.66$ 1095 US Treasury 91282CHE4 US Treasury Note 3.63%1/17/2024 1,800,000.00 1,775,185.72 (24,814.28)1,772,298.00 (2,887.72)5/31/2028 3.97%24,067.63$ 32,061.96$ 6,023.76$ 1400JP Morgan Chase 46647PDG8 Corporate Bond 4.85%2/1/2024 1,400,000.00 1,396,528.00 (3,472.00)1,399,202.00 2,674.00 7/25/2027 4.93%32,825.10$ 28,319.94$ 5,852.79$ 1089US Bancorp 91159HJF8 Corporate Bond 4.55%2/5/2024 1,000,000.00 989,200.00 (10,800.00)988,060.00 (1,140.00)7/22/2027 4.89%21,097.67$ 19,440.46$ 4,127.77$ 1086Treasury91282CHB0US Treasury Note 3.63%2/23/2024 1,175,000.00 1,151,962.92 (23,037.08)1,159,031.75 7,068.83 5/15/2026 4.56%9,595.30$ 18,568.45$ 4,497.05$ 653FHLB3130AXB31Gov. Agency Debenture 4.88%2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,005,890.00 2,830.00 3/13/2026 4.72%2,979.17$ 16,052.33$ 4,013.08$ 590FFCB3133EP5U5Gov. Agency Debenture 4.13%3/28/2024 1,700,000.00 1,687,981.00 (12,019.00)1,705,440.00 17,459.00 1,558.33 3/20/2029 4.28%(1,558.33)$ 18,681.03$ 6,160.77$ 1693US Treasury 9128285M8 US Treasury Note 3.13%4/30/2024 1,200,000.00 1,123,832.14 (76,167.86)1,156,692.00 32,859.86 11/15/2028 4.69%1,545.34$ 9,066.06$ 4,607.34$ 1568Cisco Systems 17275RBR2 Corporate Bond 4.85%5/15/2024 1,000,000.00 999,130.00 (870.00)1,015,590.00 16,460.00 10,643.06 1/26/2029 4.87%(10,643.06)$ 6,135.64$ 4,134.89$ 1640Home Depot 437076CW0 Corporate Bond 4.90%5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,016,470.00 14,680.00 4,355.56 3/15/2029 4.86%(4,355.56)$ 5,862.18$ 4,130.17$ 1688 Treasury 91282CJR3 US Treasury Note 3.75%5/31/2024 1,200,000.00 1,154,629.02 (45,370.98)1,186,452.00 31,822.98 12/31/2028 4.68%3,708.79$ 4,511.24$ 4,661.62$ 1614American Honda 02665WEY3 Corporate Bond 4.95%6/27/2024 1,000,000.00 995,640.00 (4,360.00)1,000,980.00 5,340.00 1/9/2026 5.25%1,787.50$ 430.16$ 4,445.04$ 527FHLB3130B1BT3Gov. Agency Debenture 4.88%7/2/2024 1,150,000.00 1,150,966.00 966.00 1,159,292.00 8,326.00 8,720.83 6/12/2026 4.82%(8,720.83)$ -$ 4,414.82$ 681 Subtotal 51,236,000.00$ 49,659,687.37$ (1,576,312.63)$ 50,346,227.09$ 686,539.72$ 25,277.78$ 1,104,039.69$ 1,892,099.45$ 184,266.18$ BNY MM Money Market 232,771.24 232,771.24 0.00 0.00%1LAIFState Investment Pool 16,702,445.78 16,640,914.67 (61,531.11)4.52%62,856.87 1 66,594,904.39 $67,219,913.00 $625,008.61 $25,277.78 1,104,039.69$ 1,892,099.45$ 247,123.05$ Matured Assets FNMA 3135G0V75 Gov. Agency Debenture 1.75%10/17/2019 1,100,000.00 1,105,833.30 5,833.30 7/2/2024 1.63%90,956.25$ 84,780.33$ 98.70$ Total Investments "Matured"98.70$ Total Interest FY 24_25 Matured and Current 247,221.75$ Maturity Profile Amount Percent0-1 year 24,108,305.45$ 36%1-2 years $13,158,981.69 20%2-3 years $12,302,433.08 18% 3-5 years 17,025,184.17$ 26%$66,594,904.39 100% Town of Los Gatos Investment ScheduleJuly 31, 2024 5 Date Cusip/Id Description Transaction Type Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction Total 7/2/2024 3130B1BT3 FEDERAL HOME LOAN BANK 4.875% 12JUN2026 PURCHASE 7/2/2024 1,150,000.00 4.875%6/12/2026 100.08 1,150,966.00 8,720.83 1,159,686.83 7/2/2024 3135G0V75 FANNIE MAE 1.75% 02JUL2024 BOND INTEREST 7/2/2024 1,100,000 1.750%7/2/2024 - - 9,625.00 9,625.00 7/2/2024 3135G0V75 FANNIE MAE 1.75% 02JUL2024 REDEMPTION 7/2/2024 1,100,000 1.750%7/2/2024 100.00 1,100,000.00 - 1,100,000.00 7/2/2024 Cash-USD Cash-USD SHORT TERM INVESTMENT FUND INCOME 7/2/2024 147.2 0.000%100.00 - - 147.20 7/8/2024 3133EN5N6 FEDERAL FARM CREDIT BANK 4% 06JAN2028 BOND INTEREST 7/6/2024 1,700,000 4.000%1/6/2028 - - 34,000.00 34,000.00 7/9/2024 02665WEY3 AMERICAN HONDA FINANCE 4.95% 09JAN2026 BOND INTEREST 7/9/2024 1,000,000 4.950%1/9/2026 - - 24,612.50 24,612.50 7/11/2024 3133EN5V8 FEDERAL FARM CREDIT BANK 4.125% 11JAN2027 BOND INTEREST 7/11/2024 236,000 4.125%1/11/2027 - - 4,867.50 4,867.50 7/12/2024 02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 BOND INTEREST 7/12/2024 600,000 4.700%1/12/2028 - - 14,100.00 14,100.00 7/17/2024 3133EPQC2 FEDERAL FARM CREDIT BANK 4.625% 17JUL2026 BOND INTEREST 7/17/2024 500,000 4.625%7/17/2026 - - 11,562.50 11,562.50 7/22/2024 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27)BOND INTEREST 7/22/2024 1,000,000 4.548%7/22/2028 - - 22,740.00 22,740.00 7/22/2024 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27)BOND INTEREST 7/22/2024 1,000,000 3.250%1/22/2028 - - 16,250.00 16,250.00 7/25/2024 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27)BOND INTEREST 7/25/2024 1,400,000 4.851%7/25/2028 - - 33,957.00 33,957.00 7/31/2024 91282CAB7 USA TREASURY 0.25% 31JUL2025 BOND INTEREST 7/31/2024 675,000 0.250%7/31/2025 - - 843.75 843.75 7/31/2024 91282CFB2 USA TREASURY 2.75% 31JUL2027 BOND INTEREST 7/31/2024 1,000,000 2.750%7/31/2027 - - 13,750.00 13,750.00 Town of Los Gatos Investment Transaction Detail July 31, 2024 6 Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24)8/15/2024 1,000,000$ A A2 4 3 4 4 AMERICAN HONDA FINANCE 4.95% 09JAN2026 1/9/2026 1,000,000$ A-A3 3 3 3 3 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)46077 1,000,000$ A+A1 2 2 2 2 HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026)46113 1,000,000$ A A2 3 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 3 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$ A+Aa3 3 3 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 CISCO INC. 4.85% 26FEB2029 (CALLABLE 26JAN2029)47175 1,000,000$ AA-A1 2 1 3 3 HOME DEPOT INC. 4.9% 15APR2029 (CALLABLE 15MAR2029)4/15/2029 1,000,000$ A A2 3 3 2 3 Total/Average 13,900,000$ 3.1 2.2 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 July 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)3,651,089 470,646 (2,787,393) - - 1,334,342 General Fund Total 33,179,393 470,646 (2,787,393) - - 30,862,646 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. July 2024 Prior Year Carryforward 7/1/2024* Estimated Fund Balance 7/31/2024* 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)737,192 - (14,298) - - 722,894 231-236 Landscape & Lighting Districts 181,204 219 - - - 181,423 251 Los Gatos Theatre 119,446 9,922 - - - 129,368 711-716 Library Trusts 580,447 (8,750) (2,866) - - 568,831 Special Revenue Total 1,784,942 1,391 (17,164) - - 1,769,169 CAPITAL PROJECTS 411 GFAR - General Fund Appropriated Reserve 19,155,188 26,247 (2,205) - - 19,179,230 412 Community Center Development 866,281 - - - - 866,281 421 Grant Funded Projects (2,875,096) 1,403,796 - - - (1,471,300) 461-463 Storm Basin Projects 3,414,935 853 - - - 3,415,788 471 Traffic Mitigation Projects 431,079 - - - - 431,079 472 Utility Undergrounding Projects 3,463,834 - - - - 3,463,834 481 Gas Tax Projects 1,907,003 (81,090) - - - 1,825,913 Capital Projects Total 26,363,224 1,349,806 (2,205) - - 27,710,825 INTERNAL SERVICE FUNDS 611 Town General Liability (730,197) - - - - (730,197) 612 Workers Compensation (174,089) 20,883 (477,021) - - (630,227) 621 Information Technology 2,553,540 6,341 (351,184) - - 2,208,697 631 Vehicle & Equipment Replacement 3,286,552 - (54,492) - - 3,232,060 633 Facility Maintenance 1,015,683 2,083 (14,925) - - 1,002,841 Internal Service Funds Total 5,951,489 29,307 (897,622) - - 5,083,174 Trust/Agency 942 RDA Successor Agency (6,135,628) - (1,711,514) - - (7,847,142) Trust/Agency Fund Total (6,135,628) - (1,711,514) - - (7,847,142) Total Town 61,143,420 1,851,150 (5,415,898) - - 57,578,672 * 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 $727,895.88 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year Carryforward 7/1/2024* July 2024 Estimated Fund Balance 7/31/2024* 9