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03 Staff Report. Financial and Investment Report August 2024 with attachement 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: 10/15/2024 ITEM NO: 3 DATE: October 4, 2024 TO: Mayor and Town Council FROM: Katy Nomura, Interim Town Manager SUBJECT: Receive the Monthly Financial and Investment Report for August 2024 RECOMMENDATION: Receive the Monthly Financial and Investment Report for August 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 August 2024 Monthly Financial and Investment Report which fulfills this requirement. The August 2024 Monthly Financial and Investment Report will be received by the Finance Commission at its October 14, 2024 regular meeting. DISCUSSION: The August 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 August 2024 DATE: October 4, 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 August 31, 2024, the Town’s financial position (Assets $87.49M, Liabilities $29.34M, and Fund Equity $58.15M) remains strong and the Town has sufficient funds to meet the cash demands for the next six months. As of August 31, 2024, the Town’s weighted portfolio yield for investments under management was 4.47% which was 11 basis points below the Local Agency Investment Fund (LAIF) yield of 4.58% for the same reporting period. As of August 31, 2024, the LAIF portfolio’s weighted average maturity (WAM) is 221 days versus the Town’s longer WAM of 734 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 4.47% at the close of August was 1 basis point higher when compared to the prior month’s return of 4.46% reported as of July 31, 2024. Since August 2023, LAIF yields had climbed from 343 basis points (3.43%) to 458 basis points (4.58%) through the end of August 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 September 18, 2024, the Federal Reserve voted to approve a 1/2 percentage basis point decrease from 5.5% to 5.0%. This change supports the Federal Open Market Committee’s (FOMC) goal to support maximum employment and bring year to year inflation to its targeted level of 2%. Payroll job growth slowed to 114,000 in July from 179,000. The unemployment rate rose to 4.3%, the highest since October 2021. PAGE 3 OF 3 SUBJECT: Monthly Financial and Investment Report for August 2024 DATE: October 4, 2024 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 August 2024. Attachments: 1. Financial and Investment Report (August 2024) This Page Intentionally Left Blank Weighted Average YTM Portfolio Yield on Investments under Management 4.47% Weighted Average Maturity (days)734 This Month Last Month One year ago Portfolio Allocation & Treasurer's Cash Balances $69,642,660 $72,350,241 $69,093,001 Managed Investments $49,982,029 Local Agency Investment Fund $11,702,446 Reconciled Demand Deposit Balances $7,958,185 Portfolio Allocation & Treasurer's Cash Balances $69,642,660 Benchmarks/ References: Town's Average Yield 4.47%4.46%3.71% LAIF Yield for month 4.58%4.52%3.43% 3 mo. Treasury 5.11%5.29%5.47% 6 mo. Treasury 4.86%5.09%5.51% 2 yr. Treasury 3.92%4.26%4.87% 5 yr. Treasury (most recent)3.70%3.91%4.26% 10 Yr. Treasury 3.90%4.03%4.11% Town of Los Gatos Summary Investment Information August 31, 2024 0 -1 year 31% 1 -2 years19% 2 -3 years21% 3 -5 years29% Portfolio Maturity Profile Compliance:The Town's investments are in compliance with the Town's investment policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Month YTD Cash & Investment Balances - Beginning of Month/Period 72,350,241.24$ 81,368,409.88$ Receipts 8,480,234.00 12,323,862.10 Disbursements (11,187,815.57)(24,049,612.31) Cash & Investment Balances - End of Month/Period $69,642,659.67 $69,642,659.67 Portfolio Allocation Amount % of Portfolio Max. % or $ Allowed per State Law or Policy BNY MM $73,938.80 0.12%20% of Town Portfolio US Treasury Notes $20,054,713.77 32.51%No Max. on US Treasuries Government Agency Debenture Notes $15,913,075.60 25.80%No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,940,300.50 22.60%30% of Town Portfolio Local Agency Investment Fund $11,702,445.78 18.97%$75 M per State Law Subtotal - Investments 61,684,474.45 100.00% Reconciled Demand Deposit Balances 7,958,185.22 Total Portfolio Allocation & Treasurer's Cash Balances $69,642,659.67 0.0401 0.0388 Town of Los Gatos Portfolio Allocation & Treasurer's Cash Balances August 31, 2024 BNY MM 0.12% US Treasury Notes 32.51% Government Agency Debenture Notes 25.80% Corporate Medium Term Bonds 22.60% Local Agency Investment Fund18.97% Portfolio Investment Allocation $69.1 M $69.6 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 $90.0 M Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Treasurer's Fund Balances 2 August 2024 August 2024 August 2024 Beginning Deposits Interest/Ending Balance Realized Gain/Adj.Earnings Withdrawals Balance Non-Treasury Funds: Cert. of Participation 2002 Ser A Reserve Fund 703,032.15$ -$ 2,854.71$ -$ 705,886.86$ Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 1,134,162.86 - 964.87 1,134,162.50 965.23 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 575,616.43 550.90 575,500.00 667.33 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,394,798.70 - 6,121.63 - 1,400,920.33 Note 2 Total Restricted Funds:3,807,610.14$ -$ 10,492.11$ 1,709,662.50$ 2,108,439.75$ CEPPT IRS Section 115 Trust 2,244,456.65 - 44,699.87 - 2,289,156.52$ Note 3 Grand Total COP's and CEPPT Trust 6,052,066.79$ -$ 55,191.98$ 1,709,662.50$ 4,397,596.27$ 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 August 31, 2024 3 July 2024 247,221.75$ August 2024 212,684.25$ September 2024 -$ October 2024 -$ November 2024 -$ December 2024 -$ January 2025 -$ February 2025 -$ March 2025 -$ April 2025 -$ May 2025 -$ June 2025 -$ 459,906.00$ Town of Los Gatos Statement of Interest Earned August 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)1,259,141.00 30,550.00 6/21/2027 4.19%46,287.22$ 81,871.88$ 9,096.88$ 1024Home Depot 437076BM3 Corporate Bond 3.00%8/4/2022 1,000,000.00 991,960.00 (8,040.00)979,510.00 (12,450.00)1/1/2026 3.04%49,750.00$ 61,696.52$ 5,495.95$ 488US Treasury 912828ZW3 US Treasury Note 0.25%8/9/2022 350,000.00 322,096.88 (27,903.12)338,131.50 16,034.62 6/30/2025 3.16%1,654.89$ 19,915.08$ 1,786.88$ 303FFCB3133EN5V8Gov. Agency Debenture 4.13%1/17/2023 236,000.00 239,174.20 3,174.20 237,427.80 (1,746.40)1/11/2027 3.76%14,440.25$ 12,979.52$ 1,518.36$ 863 US Treasury 91282CBT7 US Treasury Note 0.75%9/30/2022 800,000.00 712,565.18 (87,434.82)759,720.00 47,154.82 3/31/2026 4.14%9,000.00$ 54,221.52$ 5,260.93$ 577FFCB3133ENP95Gov. Agency Debenture 4.25%9/30/2022 900,000.00 900,939.60 939.60 899,802.00 (1,137.60)9/30/2025 4.14%57,375.00$ 66,415.88$ 6,444.11$ 395JP Morgan Chase 46625HRS1 Corporate Bond 3.20%9/23/2022 500,000.00 474,660.00 (25,340.00)489,015.00 14,355.00 3/15/2026 4.70%27,644.44$ 41,217.45$ 3,955.85$ 561FFCB3133EKQA7Gov. Agency Debenture 2.08%10/21/2019 1,000,000.00 1,019,780.00 19,780.00 999,370.00 (20,410.00)9/10/2024 1.66%91,231.11$ 78,691.92$ 2,846.50$ 10FHLB3135G05X7Gov. Agency Debenture 0.38%6/10/2022 1,200,000.00 1,102,952.40 (97,047.60)1,154,244.00 51,291.60 8/25/2025 3.04%9,937.50$ 71,445.55$ 5,898.30$ 359US Treasury 912828ZL7 US Treasury Note 0.38%4/12/2022 1,700,000.00 1,583,927.57 (116,072.43)1,653,284.00 69,356.43 4/30/2025 2.72%13,066.99$ 98,544.63$ 7,542.92$ 242FHLB3130AQF65Gov. Agency Debenture 1.25%11/30/2022 1,300,000.00 1,160,559.40 (139,440.60)1,225,211.00 64,651.60 12/21/2026 4.15%25,322.92$ 80,116.59$ 8,593.82$ 842FHLB3130APJH9Gov. Agency Debenture 1.00%1/17/2023 1,000,000.00 907,010.00 (92,990.00)953,740.00 46,730.00 10/28/2026 4.17%13,354.17$ 50,234.10$ 5,876.44$ 788FFCB3133EN5N6Gov. Agency Debenture 4.00%2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,712,240.00 5,508.00 1/6/2028 3.91%95,955.56$ 92,733.76$ 11,317.90$ 1223Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38%5/1/2023 750,000.00 689,032.50 (60,967.50)719,685.00 30,652.50 9/23/2025 3.97%2,515.62$ 32,931.11$ 4,792.79$ 388American Honda 02665WED9 Corporate Bond 4.70%5/11/2023 600,000.00 608,856.00 8,856.00 606,474.00 (2,382.00)1/12/2028 4.34%32,978.33$ 29,982.05$ 4,468.48$ 1229US Treasury 91282CEF4 US Treasury Note 2.50%6/9/2023 1,500,000.00 1,416,626.12 (83,373.88)1,452,075.00 35,448.88 3/31/2027 4.09%30,327.87$ 62,956.31$ 10,086.02$ 942US Treasury 91282CGA3 US Treasury Note 4.00%6/20/2023 2,100,000.00 2,080,558.59 (19,441.41)2,094,099.00 13,540.41 12/15/2025 4.40%82,852.46$ 94,573.28$ 15,594.53$ 471 Colgate-Palmolive 194162AR4 Corporate Bond 4.60%7/14/2023 500,000.00 504,655.00 4,655.00 508,955.00 4,300.00 2/1/2028 4.37%14,502.79$ 21,195.52$ 3,733.30$ 1249FannieMae3135G06G3Gov. Agency Debenture 0.50%7/14/2023 500,000.00 455,157.00 (44,843.00)478,480.00 23,323.00 11/7/2025 4.63%2,034.72$ 21,047.01$ 3,707.14$ 433FFCB3133EPQC2Gov. Agency Debenture 4.63%7/17/2023 500,000.00 501,957.50 1,957.50 505,225.00 3,267.50 7/17/2026 4.48%23,125.00$ 21,487.97$ 3,817.35$ 685FFCB3133EPBM6Gov. Agency Debenture 4.13%7/14/2023 600,000.00 596,220.00 (3,780.00)604,512.00 8,292.00 8/23/2027 4.29%27,431.25$ 24,754.94$ 4,360.25$ 1087 PNC Bank 69353RFJ2 Corporate Bond 3.25%7/25/2023 1,000,000.00 921,490.00 (78,510.00)960,350.00 38,860.00 12/23/2027 5.23%32,229.17$ 46,970.90$ 8,540.16$ 1209US Treasury 91282CFU0 US Treasury Note 4.13%7/31/2023 1,300,000.00 1,290,660.60 (9,339.40)1,312,493.00 21,832.40 10/31/2027 4.31%40,218.75$ 51,232.08$ 9,481.76$ 1156Toyota Motor Credit 89236TKL8 Corporate Bond 5.45%8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,654,992.00 37,824.00 11/10/2027 5.16%61,766.67$ 70,599.88$ 14,119.98$ 1166US Treasury 912810FE3 US Treasury Note 5.50%10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,280,580.00 42,372.86 8/15/2028 4.76%57,211.96$ 43,179.27$ 9,878.65$ 1445 Pepsico Inc 713448DF2 Corporate Bond 2.85%10/16/2023 1,000,000.00 947,570.00 (52,430.00)980,390.00 32,820.00 11/24/2025 5.24%24,383.33$ 37,712.66$ 9,062.73$ 450 FFCB 3133EPUW3 Gov. Agency Debenture 4.75%10/13/2023 1,000,000.00 994,338.00 (5,662.00)1,014,340.00 20,002.00 9/1/2026 4.96%18,208.33$ 35,367.82$ 8,401.55$ 731Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50%10/13/2023 1,000,000.00 951,540.00 (48,460.00)985,230.00 33,690.00 2/12/2025 5.32%12,458.33$ 36,644.18$ 8,704.75$ 165US Treasury 91282CEW7 US Treasury Note 3.25%10/16/2023 1,000,000.00 950,039.06 (49,960.94)985,270.00 35,230.94 6/30/2027 4.73%22,961.96$ 32,499.52$ 7,809.96$ 1033 US Treasury 91282CEN7 US Treasury Note 2.75%10/31/2023 1,300,000.00 1,214,336.39 (85,663.61)1,264,861.00 50,524.61 4/30/2027 4.82%17,875.00$ 40,101.59$ 10,231.68$ 972US Treasury 912828YV6 US Treasury Note 1.50%11/15/2023 700,000.00 673,667.97 (26,332.03)694,365.00 20,697.03 11/30/2024 5.26%5,680.33$ 22,316.65$ 6,068.56$ 91US Treasury 91282CAB7 US Treasury Note 0.25%11/15/2023 675,000.00 623,900.39 (51,099.61)650,112.75 26,212.36 7/31/2025 4.92%1,196.84$ 19,725.12$ 5,363.85$ 334US Treasury 91282CGU9 US Treasury Note 3.88%11/30/2023 1,000,000.00 983,515.62 (16,484.38)995,380.00 11,864.38 3/31/2025 5.17%12,916.67$ 29,822.81$ 8,680.82$ 212 US Treasury 91282CCH2 US Treasury Note 1.25%12/21/2023 900,000.00 798,647.55 (101,352.45)819,738.00 21,090.45 6/30/2028 3.99%5,930.71$ 17,690.14$ 5,712.44$ 1399FNMA3135G0Q22Gov. Agency Debenture 1.88%12/21/2023 900,000.00 845,676.00 (54,324.00)863,379.00 17,703.00 9/24/2026 4.22%4,359.38$ 19,224.14$ 6,207.80$ 754US Treasury 91282CFB2 US Treasury Note 2.75%1/2/2024 1,000,000.00 960,354.91 (39,645.09)970,940.00 10,585.09 7/31/2027 3.95%15,917.12$ 19,025.75$ 6,553.31$ 1064US Treasury 91282CHE4 US Treasury Note 3.63%1/17/2024 1,800,000.00 1,775,185.72 (24,814.28)1,791,000.00 15,814.28 5/31/2028 3.97%24,067.63$ 32,061.96$ 12,047.52$ 1369 JP Morgan Chase 46647PDG8 Corporate Bond 4.85%2/1/2024 1,400,000.00 1,396,528.00 (3,472.00)1,412,488.00 15,960.00 7/25/2027 4.93%32,825.10$ 28,319.94$ 11,705.58$ 1058US Bancorp 91159HJF8 Corporate Bond 4.55%2/5/2024 1,000,000.00 989,200.00 (10,800.00)1,000,300.00 11,100.00 7/22/2027 4.89%21,097.67$ 19,440.46$ 8,255.54$ 1055Treasury91282CHB0US Treasury Note 3.63%2/23/2024 1,175,000.00 1,151,962.92 (23,037.08)1,167,151.00 15,188.08 5/15/2026 4.56%9,595.30$ 18,568.45$ 8,994.09$ 622FHLB3130AXB31Gov. Agency Debenture 4.88%2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,010,580.00 7,520.00 3/13/2026 4.72%2,979.17$ 16,052.33$ 8,026.16$ 559FFCB3133EP5U5Gov. Agency Debenture 4.13%3/28/2024 1,700,000.00 1,687,981.00 (12,019.00)1,724,752.00 36,771.00 1,558.33 3/20/2029 4.28%(1,558.33)$ 18,681.03$ 12,321.53$ 1662US Treasury 9128285M8 US Treasury Note 3.13%4/30/2024 1,200,000.00 1,123,832.14 (76,167.86)1,170,000.00 46,167.86 11/15/2028 4.69%1,545.34$ 9,066.06$ 9,214.69$ 1537Cisco Systems 17275RBR2 Corporate Bond 4.85%5/15/2024 1,000,000.00 999,130.00 (870.00)1,027,320.00 28,190.00 1/26/2029 4.87%13,606.94$ 6,135.64$ 8,269.77$ 1609Home Depot 437076CW0 Corporate Bond 4.90%5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,027,370.00 25,580.00 4,355.56 3/15/2029 4.86%(4,355.56)$ 5,862.18$ 8,260.34$ 1657Treasury91282CJR3US Treasury Note 3.75%5/31/2024 1,200,000.00 1,154,629.02 (45,370.98)1,199,808.00 45,178.98 12/31/2028 4.68%3,708.79$ 4,511.24$ 9,323.24$ 1583 American Honda 02665WEY3 Corporate Bond 4.95%6/27/2024 1,000,000.00 995,640.00 (4,360.00)1,005,330.00 9,690.00 1/9/2026 5.25%1,787.50$ 430.16$ 8,890.07$ 496FHLB3130B1BT3Gov. Agency Debenture 4.88%7/2/2024 1,150,000.00 1,150,966.00 966.00 1,165,847.00 14,881.00 8,720.83 6/12/2026 4.82%(8,720.83)$ -$ 9,134.12$ 650Citibank17325FBK3Corporate Bond 4.84%8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,268,250.00 5,187.50 1,511.88 7/6/2029 4.60%(1,511.88)$ -$ 2,533.94$ 1770 Subtotal 51,486,000.00$ 49,908,089.87$ (1,577,910.13)$ 51,032,958.05$ 1,124,868.18$ 16,146.60$ 1,099,169.48$ 1,800,254.58$ 367,989.31$ BNY MM Money Market 73,938.80 73,938.80 0.00 0.00%1LAIFState Investment Pool 11,702,445.78 11,659,334.46 (43,111.32)4.58%89,309.17 1 61,684,474.45 $62,766,231.31 $1,081,756.86 $16,146.60 1,099,169.48$ 1,800,254.58$ 457,298.47$ 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$ Honeywell Int'l.438516BW5 Corporate Bond 2.30%11/20/2019 1,000,000.00 1,014,660.00 14,660.00 8/15/2024 1.64%108,483.33$ 91,844.87$ 2,508.83$ Total Investments "Matured"2,607.52$ Total Interest FY 24_25 Matured and Current 459,906.00$ Maturity Profile Amount Percent0-1 year 19,037,765.41$ 31%1-2 years $12,056,029.29 20% 2-3 years $12,898,653.08 21%3-5 years 17,692,026.67$ 29%$61,684,474.45 100% Town of Los Gatos Investment ScheduleAugust 31, 2024 5 Date Cusip/Id Description Transaction Type Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction Total 8/2/2024 Cash-USD Cash-USD SHORT TERM INVESTMENT FUND INCOME 8/2/2024 616.94 0.000%100.00 - - 616.94 8/15/2024 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29)PURCHASE 8/15/2024 1,250,000 483.800%8/6/2029 101.05 1,263,062.50 1,511.88 1,264,574.38 8/12/2024 3137EAEP0 FREDDIE MAC 1.5% 12FEB2025 BOND INTEREST 8/12/2024 1,000,000 150.000%2/12/2025 - - 7,500.00 7,500.00 8/15/2024 438516BW5 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 CALLABLE BOND INTEREST 8/15/2024 1,000,000.0 230.000%8/15/2024 - - 11,500.00 11,500.00 8/15/2024 438516BW5 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 CALLABLE REDEMPTION 8/15/2024 1,000,000 230.000%8/15/2024 100.00 1,000,000.00 - 1,000,000.00 8/15/2024 912810FE3 USA TREASURY 5.5% 15AUG2028 BOND INTEREST 8/15/2024 1,200,000 550.000%8/15/2028 - - 33,000.00 33,000.00 8/23/2024 3133EPBM6 FEDERAL FARM CREDIT BANK 4.125% 23AUG2027 BOND INTEREST 8/23/2024 600,000 412.500%8/23/2027 - - 12,375.00 12,375.00 8/26/2024 713448DF2 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)BOND INTEREST 8/24/2024 1,000,000 285.000%2/24/2026 - - 14,250.00 14,250.00 8/26/2024 3135G05X7 FANNIE MAE 0.375% 25AUG2025 BOND INTEREST 8/25/2024 1,200,000 37.500%8/25/2025 - - 2,250.00 2,250.00 8/26/2024 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29)BOND INTEREST 8/26/2024 1,000,000 485.000%2/26/2029 - - 24,250.00 24,250.00 Town of Los Gatos Investment Transaction Detail August 31, 2024 6 Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance AMERICAN HONDA FINANCE 4.95% 09JAN2026 1/9/2026 1,000,000$ A-A3 3 3 3 3 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25)2/24/2026 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)46188 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)2/26/2029 1,000,000$ AA-A1 2 1 3 3 HOME DEPOT INC. 4.9% 15APR2029 (CALLABLE 15MAR2029)47223 1,000,000$ A A2 3 3 2 3 CITIBANK 4.838% 06AUG2029 (CALLABLE 06JUL2029)8/6/2029 1,250,000$ A+Aa3 3 1 3 4 Total/Average 14,150,000$ 3.0 2.1 2.9 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 August 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)1,619,061 (938,017) 2,150,257 (3,074,023) - - (242,722) General Fund Total 31,147,365 (938,017) 2,150,257 (3,074,023) - - 29,285,582 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. Aug 2024 Prior Year Carryforward 7/1/2024* Increase/ (Decrease) July Estimated Fund Balance 8/31/2024* 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)754,134 (31,240) 30,583 (17,228) - - 736,249 231-236 Landscape & Lighting Districts 182,625 219 - (1,822) - - 181,022 251 Los Gatos Theatre 119,446 9,601 105,874 (262) - - 234,659 711-716 Library Trusts 556,849 (2,866) 272 (721) - - 553,534 Special Revenue Total 1,779,707 (24,286) 136,729 (20,033) - - 1,872,117 CAPITAL PROJECTS 411 GFAR - General Fund Appropriated Reserve 20,282,453 26,957 85,164 (2,129) - - 20,392,445 412 Community Center Development 866,281 - - - - - 866,281 421 Grant Funded Projects (2,598,237) - - - - - (2,598,237) 461-463 Storm Basin Projects 3,531,248 3,337 5,814 - - - 3,540,399 471 Traffic Mitigation Projects 509,491 - - - - - 509,491 472 Utility Undergrounding Projects 3,584,251 623 - - - - 3,584,874 481 Gas Tax Projects 1,928,167 (81,090) 171,244 - - - 2,018,321 Capital Projects Total 28,103,654 (50,173) 262,222 (2,129) - - 28,313,574 INTERNAL SERVICE FUNDS 611 Town General Liability 177,876 - - (1,321,181) - - (1,143,305) 612 Workers Compensation 586,246 (456,139) 3,480 (427,377) - - (293,790) 621 Information Technology 2,568,644 (338,991) 6,138 (45,515) - - 2,190,276 631 Vehicle & Equipment Replacement 3,286,552 (54,492) - - - - 3,232,060 633 Facility Maintenance 1,004,774 (11,870) 24,836 (44,771) - - 972,969 Internal Service Funds Total 7,624,092 (861,492) 34,454 (1,838,844) - - 4,958,210 Trust/Agency 942 RDA Successor Agency (4,568,003) (1,711,514) - (102) - - (6,279,619) Trust/Agency Fund Total (4,568,003) (1,711,514) - (102) - - (6,279,619) Total Town 64,086,815 (3,585,482) 2,583,662 (4,935,131) - - 58,149,864 * 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 $434,723.77 111-23521 BMP Housing deposit account balance $3,923,342.78 Prior Year Carryforward 7/1/2024* Increase/ (Decrease) July Aug 2024 Estimated Fund Balance 8/31/2024* 9 This Page Intentionally Left Blank