01 Staff Report - Treasurer's Reports for May & June 2006DATE:
TO:
FROM:
SUBJECT:
MEETING DATE:08/07/06
ITEM NO.1
o COUNCIL AGENDA REPORT
July 27,2006
MAYORANDTOWNCOUNC~
o nJ-
LINDA LUBECK,TOWN TREASURER oJ{'
TREASURER'S REPORTS FOR MAY &JUNE,2006
RECOMMENDATION:
Accept reports as attached.
DISCUSSION:
Attached for your review and acceptance are the Treasurer's reports for May and June,2006 ..
Prime increased to 8.25%on June 29,2006.Treasurer's funds remained fairly stable during the
period.Interest rates continued to rise slightly,as did the Town's overall performance.
The cash at Union Bank was reinvested into the market during the month of May,with the advice
of MBIA,at higher rates overall.Some diversification of the portfolio is occuring,with a move to
include Treasury's again.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA,and no further action is required.
FISCAL IMPACT:None
Attachments:Treasurer's reports dated July,2006.
PREPARED BY:Linda L.Lubeck,Town Treasurer
1J.4-_~own Manager ID-Assistant Town Manager -4b1'f..<"-Town Attorney
Clerk~inance__Community Development Revised:7/27/06 9:04 am
Distribution:Town Council;Town Manager;Finance Director
Reformatted:5/30/02
Distribution:Town Clerk
Town Manager
Town Council
Town of Los Gatos
Treasurer's Report
for the month ended
May 31,2006
Submitted July 17,2006
by
Linda L.Lubeck
Meeting date:August 7,2006
Item No:
Town of Los Gatos
Summary Investment Information
May 31,2006
Weighted Average Portfolio Yield:3.98%Weighted Average Maturity (clays)287
Portfolio Balance
Benchmarks/References:
Town's Average Yield
LAIF Yield for month
3 mo.Treasury
6 mo.Treasury
2 yr.Treasury
5 yr.Treasury (most recent)
Prime rate
This Month
$66,424,046
3.98%,
4.56%
4.84%
5.03%
4.93%
4.95%
8.00%
Last Month
$65,264,285
3.78%
4.31%
4.76%
4.92%
4.98%
4.96%
7.75%
One year ago
$56,530,508
2.86%
2.86%
3.00%
3.17%
3.62%
3.89%
6.00%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr.Freddie Mac (05/25/06)5.25%
2 yr.Freddie Mac (04/13/06)5.13%
2 - 3 years
9%
Portfolio Maturity Profile
3 -5 years
2%
1 - 2 years
20%
Compliance:The Town's investments are in compliance with the Town's investment policy dated August 9,2005 and also in
compliance with the requirements of Section 53601 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.
Page 2
Town of Los Gatos
Portfolio Allocation &Treasurer's Fund Balances
May 31,2006
Fund Balances -Beginning of Month/Period
Receipts
Disbursements
Fund Balances -End of Month/Period
Portfolio Allocation:
UnionMM
US Govt Agencies
Local Agency Investment Fund
Subtotal -Investments
Reconciled Demand Deposit Balances
Total Treasurer's Fund
Month
$65,264,285.19
3,312,071.83
(2,152,310.62)
$66,424,046.40
2,438,401.64
36,310,662.61
24.837,414.80
63,586,479.05
2.837.567.35
$66,424,046.40
YTD
$57,531,241.44
40,841,097.80
(31.948.292.84)
$66,424,046.40
Portfolio'Investment Allocation
Union MM
3.8%
Local Agency Investment Fund
39.1%
Treasurer's Fund Balances
$68,000,000
$67,000,000
$66,000,000
$65,000,000
$64,000,000
$63,000,000
$62,000,000
$61,000,000
$60,000,000
$59,000,000
$58,000,000
$57,000,000
$56,000,000
$55,000,000
$54,000,000
$53,000,000
$52,000,000
page 2
Town of Los Gatos
Non-Treasury Restricted Fund Balances
May 31,2006
Previous
Balance
Non-Treasury Funds:
Downtown Parking District 12120102
Certificates of Participation Reserve Fund (Lot 4)
Cert.of Participation Lease Payment Fund (Lot 4)
Cert.of Participation 2002 Series A Const.Fund
Cert.of Participation 2002 Series A Reserve Fund
Cert.Of Participation 2002 Series A Interest Fund
Cert.Of Participation 2002 Series A cor Fund
Total Restricted Funds:
245,058.34
259,954.26
90,311.49
1,300,643.48
753,113.04
298.71
0.00
$2,649,379.32
61,164.60
$61,164.60
Ending
Interest Withdrawals Balance
524.83 245,583.17 Note 1
886.02 260,840.28 Note 2
307.81 151,783.90 Note 3
12,919.73 25,301.82 1,288,261.39 Note 4
14,463.31 21.99 767,554.36 Note 4
0.94 299.65
0.00 0.00 0.00 Note 4
$29,102.64 $25,323.81 $2,714,322.75
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:This account include redemption accounts set up for the repayment of interest and principal on outstanding
bond coupons for Parking Assessment District '3',as well as Reserve Funds set up as required by the original Bond resolution.
Note 2:The reserve fund was a requirement of the original certificates of participation agreement when Lot 4 was built.It helps
to guarantee payment of the lease payments should the Town not make payment.
Note 3:The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4.It holds the funds until
payments on the certificates of participation are due semi-annually.
Note 4:The three 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.
Page 3
Interest received from Investments
Add:Interest accrued at end of period (see page 5)
.Less:Interestaccruect at beginning o(period
Interest earned on investments
Town of Los Gatos
Statement of Interest Earned
May 31,2006
Current Fiscal
Month Year to Date
132,615.00 1,576,860.62
178,631.99 178,631.99
(103~002.1 0)
.
(33,323.6-0)
$208,244.89 $1,722,169.01
Page 4
Distribution:Town Clerk
Town Manager
Town Council
Town of Los Gatos
Treasurer's Report
for the month ended
June 30,2006
SUl:nlritted July 26,2006
by
Linda L.Lubeck
Meeting date:August 7,2006 .
Item No:
Town of Los Gatos
Summary Investment Information
June 30,2006
Weighted Average Portfolio Yield:4.17%Weighted Average Maturity (days)307
Portfolio Balance
This Month
$66,482,900
Last Month
$66,424,046
One year ago
$56,530,508
Benchmarks/References:
Town's Average Yield
LAIF Yield for month
3 mo.Treasury
_.§IP_~·l'rea~ury _
2 yr.Treasury
5 yr.Treasury (most recent)
Prime rate
4.17%3.98%2.86%
4.60% 4.56%2.86%
5.04%4.84%3.00%
5.32%5.03%3.17%
-~~-_._._._~---~-------- --"----------------------_.--------------
5.24%4.93%3.62%
5.20%4,95%3.89%
8.25%8.00%6.00%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr.Freddie Mac (05/25/06)5.25%
2 yr.Fannie Mae (06/13/06)5.27%
Portfolio Maturity Profile
2 - 3 years
10%
3 - 5 years
2%
1-2 years
24%
Compliance:The Town's investments are in compliance with the Town's investment policy dated August 9,2005 and also in
compliance with the requirements of Section 53601 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.
Page 2
Town of Los Gatos
Portfolio Allocation &Treasurer's Fund Balances
June 30,2006
Fund Balances -Beginning of Month/Period
Receipts
Disbursements
Fund Balances -End of Month/Period
Portfolio Allocation:
UnionMM
US Govt Agencies
Local Agency Investment Fund
Subtotal -Investments
Reconciled Demand Deposit Balances
Total Treasurer's Fund
Month
$66,424,046.40
2,907,174.25
(2,848,320.83)
$66,482,899.82
304,214.77
38,579,190.09
24,837.414.80
63,720,819.66
2.762,080.16
$66,482,899.82
YTD
$57,531,241.44
43,748,272.05
(34,796,613.67)
$66,482,899.82
Portfolio Investment Allocation
Union MM
0.5%
Local Agency Investment Fund
39.0%
Treasurer's Fund Balances
US Govt Agencies
60.5%
$68,000,000
$67,000,000
$66,000,000
$65,000,000
$64,000,000
$63,000,000
$62,000,000
$61,000,000
$60,000,000
$59,000,000
$58,000,000
$57,000,000
$56,000,000
$55,000,000
$54,000,000
$53,000,000
$52,000,000
page 2
Town of Los Gatos
Non-Treasury Restricted Fund Balances
June 30,2006
Previous
Balance
Non-Treasury Funds:
Downtown Parking District 12/20/02
Certificates of Participation Reserve Fund (Lot 4)
Cert.of Participation Lease Payment Fund (Lot 4)
Cert.of Participation 2002 Series A Const.Fund
Cert.of Participation 2002 Series A Reserve Fund
Cert.Of Participation 2002 Series A Interest Fund
Cert.Of Participation 2002 Series A COl Fund
245,583.17
260,840.28
151,783.90
1,288,261.39
767,554.36
299.65
0.00
40,776.40
400,000.00
Ending
Interest Withdrawals Balance
543.49 246,126.66 Nolel
947.25 261,787.53 Nole2
544.23 193,104.53 Nole3
0.84 0.01 1,688,262.22 Nole4
287.92 25.19 767,817.09 Nole4
1.02 0.01 300.66
0.00 0.00 0.00 Nole4
Total Restricted Funds:$2,714,322.75 $440,776.40 $25.21 $3,157,398.69~_~_.._
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:This account include redemption accounts set up for the repayment of interest and principal on outstanding
bond coupons for Parking Assessment District '3',as well as Reserve Funds set up as required by the original Bond resolution.
Note 2:The reserve fund was a requirement of the original certificates of participation agreement when Lot 4 was built.It helps
to guarantee payment of the lease payments should the Town not make payment.
Note 3:The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4.It holds the funds until
payments on the certificates of participation are due semi-annually.
Note 4:The three 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..
Page 3
Town of Los Gatos
Statement of Interest Earned
June 30,2006
Current
Month
Fiscal
Year to Date
Interest received from Investments
Add:Interest accrued at end of period (see page 5)
134,573.19
268,699.72
1,711,433.81
268,699.72
$224,640.92
Ir-----Less:Interest accrued at beginning Of perr~~~--~------------(-118;63 f.99)---
Interest earned on investments
Page 4
(33,323.60)
$1,946,809.93
Town of Los Gatos
Inactive Deposits by Institution
Market to Cost Position Report
June 30,2006
Inactive Deposits.by Institution
Deposit
Date
Amortized
Cost
Maturity
Date
Days
Elapsed
Days to
Maturity
Days
Invested
Yield to
Matlllity
Interest
Earned
Interest
Received
Interest
Accrued
FHLB Discount Note 05112/06 1,140,118.63 07114/06 49 14 63 5.021%7,684.99 0.00 7,6~4.99
FHLB Discount Note 05/12106 1,185,060.83 08/11/06 49 42 91 5.056%8,043.61 0.00 8,043.61
FNMA Discount Note 05/12/06 1,078,739.44 09129/06 49 91 140 5.138%7,440.70 0.00 7,440.70
FNMA Discount Note 06/02/06 1,275,395.33 10/16/06 28 108 136 5.178%5,066.08 5,066.08
939 FFCB Coupon Note 03116/05 498,560.00 12/11106 471 164 635 3.800%24,447.20 22,404.51 2,042.69
934 FNMA Coupon Note 08/18/04 1,491,000.00 01112/07 681 196 877 3.060%85,137.11 58,800.00 26,337.11
940 FI-ILB Coupon Note 03116/05 543,228.45 02/09/07 471 224 695 3.930%27,548.83 13,743.65 13,805.18
929 FNMA Coupon Note 02/09/04 2,000,000.00 05109107 872 313 1185 3.000%143,342.47 120,000.00 23,342.47
942 FI-ILB Coupon Note 05116/05 999,000.00 05/16/07 410 320 730 4.043%45,369.11 39,900.00 5,469.11
943 FNMA Coupon Note 07/01/05 749,032.50 05117107 364 321 685 3.815%28,497.30 10,625.00 17,872.30
930 FHLMC Coupon Note 02124/04 2,505,250.00 08/24/07 857 420 1277 3.156%185,641.91 161,000.00 24,641.91
946 FHLMC Discount Note 08115105 1,500,000.00 11115/07 319 503 822 4.496%58,940.71 33,750.00 25,190.71
-·-9"4~FNMA---Coupon~Note--~07/0j-J05~---984;07454----12115/07-----364-~-----533~~--897~--3'807%---47;36-1:08----29;861:1l~--7;499:97~~---~~~~
947 FHLMC Discount Note 08115105 999,700.00 02/15108 319 595 914 4.513%39,430.55 22,500.00 16,930.55
USTreasury Note 05112106 1,986,562.50 03/31108 49 640 689 5.000%13,334.46 13,334.46
945 FHLB Coupon Note 07/01105 755,975.25 04/18/08 364 658 1022 3.803%28,670.97 24,664.06 4,006.91
USTreasury Note 06115106 1,990,312.50 05/31108 15 701 716 5.135%4,200.10 4,200.10
FI-ILB Coupon Note 05/12106 1,498,035.00 03113/09 49 987 1036 5.298%10,654.60 10,654.60
USTreasury Note 05/15106 1,992,343.75 05/15109 46 1050 1096 5.014%12,589.65 12,589.65
FHLB Coupon Note 06/15106 1,493,400.00 06/12/09 15 1078 1093 5.226%3,207.33 3,207.33
FHLMC Coupon Note 06/30103 387,296.88 07/15106 1096 15 1111 1.872%21,770.46 48,927.08 (27,156.62)
FNMA Coupon Note 06110104 297,213.00 08/11106 750 42 792 3.177%19,402.31 13,772.92 5,629.39
FHLB Coupon Note 06/30103 400,000.00 09129/06 1096 91 1187 2.200%26,424.11 24,240.00 2,184.11
FHLMC Coupon Note 02122/05 197,629.00 10/15106 493 107 600 3.507%9,361.39 6,309.72 3,051.67
FHLB Coupon Note 06124/03 688,076.80 11115106 1102 138 1240 1.825%37,913.03 76,340.00 (38,426.97)
FFCB Coupon Note 06/25103 660,954.00 12/19106 1101 172 1273 1.844%36,764.33 87,262.50 (50,498.17)
FI-ILB Coupon Note 06/30103 400,000.00 12/29/06 1096 182 1278 2.225%26,724.38 26,700.00 24.38
FNMA Coupon Note 02122/05 195,358.60 02/15107 493 230 723 3.363%8,873.88 4,657.64 4,216.24
FHLMC Coupon Note 06125103 662,652.00 03/15107 1101 258 1359 1.946%38,897.60 79,625.00 (40,727.40)
FNMA Coupon Note 06/30103 333,597.66 04115107 1096 289 1385 2.150%21,536.70 43,968.75 (22,432.05)
FI-ILMC MTN Coupon Note 06127103 402,556.00 05/29/07 1099 333 1432 2.808%34,035.19 35,033.33 (998.14)
FNMA Coupon Note 06/30103 375,219.60 07115107 1096 380 1476 2.359%26,578.54 37,807.29 (11,228.75)
FHLB Coupon Note 06/24/03 672,825.60 11115107 1102 503 1605 2.257%45,848.25 64,773.33 (18,925.08)
FNMA Coupon Note 06/24/03 299,475.00 12124/07 1102 542 1644 2.528%22,857.38 22,500.00 357.38
FNMA Coupon Note 06/27/03 649,785.94 01115108 1099 564 1663 2.492%48,755.45 52,211.00 (3,455.55)
FHLMC Coupon Note 09/30104 198,630.00 02/25108 638 605 1243 3.462%12,019.87 9,118.06 2,901.81
FHLMC Coupon Note 06/26/03 657,396.09 03/15108 1100 624 1724 2.294%45,448.58 48,236.08 (2,787.50)
FHLB Coupon Note 06/30103 286,162.50 04115108 1096 655 1751 2.633%22,624.62 41,037.50 (18,412.88)
FHLB Coupon Note 06126103 661,764.30 05/13/08 1100 683 1783 2.507%49,998.56 99,253.86 (49,255.30)_
FHLMC MTN Coupon Note 06/30103 228,298.00 06/13/08 1096 714 1810 2.894%19,838.93 18,676.32 1,162.61
FHLMC Coupon Note 06/24/03 500,000.00 06/18/08 1102 719 1821 2.750%41,513.70 41,250.00 263.70
FNMA Coupon Note 09/30104 198,597.00 08115108 638 777 1415 3.442%11,948.44 8,937.50 3,010.94
FNMA Coupon Note 11/16/04 199,216.00 09115108 591 808 1399 3.866%12,470.41 9,979.17 2,491.24
FNMA Coupon Note 01119/05 248,157.50 09115108 527 808 1335 3.974%14,238.79 10,833.33 3,405.46
FNMA Coupon Note 11116104 199,552.00 11117/08 591 871 1462 3.936%12,717.62 11,646.53 1,071.09
FHLMC Coupon Note 07/07/05 296,403.00 01112/09 358 927 1285 4.313%12,538.69 6,619.79 5,918.90
FNMA Coupon Note 01/21/05 242,400.00 03116/09 525 990 1515 3.930%13,702.24 9,006.08 4,696.16
FHLMC Coupon Note 06/17105 300,198.00 07/30109 378 1126 1504 4.359%13,551.69 8,130.21 5,421.48
FHLMC Coupon Note 08/01105 298,332.00 07/30109 333 1126 1459 4.527%12,321.45 6,526.04 5,795.41
FI-ILMC Coupon Note 06114/05 298,683.00 09/01109 381 1159 1540 4.237%13,209.95 8,834.37 4,375.58
FHLMC Coupon Note 01/21105 149,686.50 09/01/09 525 1159 1684 4.180%8,999.64 6,875.00 2,124.64
FHLMC Coupon Note 06/14/05 299,331.00 01125/10 381 1305 1686 4.431%13,844.76 8,057.29 5,787.47
Subtotal 38,551,235.69
304,214.77
27,954.40
04/01106 24,837,414.80
UnionMM
Purchased Interest
LAIF N/A
Maturity Profile
0-1 year
1-2 years
2-3 years
3~5 years
Market to Cost Position Report
Market
Price
63,720,819.66
Amount
40,755,053.09
15,251,431.82
6,368,104.25
1.346.230.50
63,720,819.66
Amortized
~
30 30 4.71%1,177.69 1,177.69
06/30106 90 0 90 4.60%248,576.35 248,576.35
307 4.17%1,783,093.74 1,514,394.02 268,699.72
Percent
63.96%
23.93%
9.99%
2.11%
.!Q2;2Q%
Market Unrealized
Value"Gain (Loss)
(901,057.19)
0.00
Union Bank Assets 38,551,235.69 37,650,178.50
Union MM 304,214.77 304,214.77
Purchased Interest 27,954.40 27,954.40
=-....,.:L::;.AIF=-::::24c.:,:::83:;,;7.",4""1"'4;;;.8:;:.0__---':2"'4"',8".37"','=47.14:.:..8:;:0:---_-:::-:~=0.:;;OO=-*Source:Treasury and Agency Obligations -Union Bank of California
"T",o""ta",ls::..:--=6"')3:!.:,7.::2::::0,"'8;:;19:.:.6"'6'---__-'6:::2~,8:::19::.2,::..76",2::.4.:,:7_I'l'lolJ'!>:ee5£!:.:0:.:1""0:::5,,,7.:::1:..!...9)LAIF balances per Local Agency Investment Fund monthly statement.