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2 - Fourth Quarter Investment Report for FY 2010/11MEETING DATE: 10/17/2011 ITEM NO: 2 COUNCIL AGENDA REPORT DATE: OCTOBER 11, 2011 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: FOURTH QUARTER INVESTMENT REPORT FOR FY 2010/11 (APRIL THROUGH JUNE 2011) RECOMMENDATION: Accept attached Fourth Quarter Investment Report for FY 2010/11. DISCUSSION: Attached for your consideration is the fourth quarter investment report for FY 2010/11. The Town's overall investment rate of return has dropped during the current quarter from 1.72% to 1.46% as older investments have continued to mature. This rate continues to be higher than the current LAIF rate of .45%. The strategy for the foreseeable future continues to be to remain fairly short term and to invest mostly in callable agency bonds in order to attempt to pick up a few basis points over non -callable agencies and treasuries. The Town also attempts to find good solid corporate bonds when possible. FISCAL IMPACT: None Attachment: Fourth Quarter Investment Report for FY 2010/11 (April through June 2011) PREPARED BY: ST�EE CONWAY Finance & Administrative Services Director/ Town Treasurer Reviewed by: r efr Assistant Town Manager A(,. Town Attorney Finance C:\Users\lseastroin\AppData\Local\Microsoft\WindowATemporary Interne des\Content.OutlookWUUPMKSY\Treasurer's Report - 4th Q (April - June).doc THIS PAGE INTENTIONALLY LEFT BLANK Town of Los Gatos Investment Report for the month ended June 30, 2011 Prepared by Linda L. Speicher, Project Manager 10/08/11 Weighted Average Portfolio Yield: TOR71 of Los Gatos Summary Investment Information June 30, 2011 1.46% Weighted Average Maturity (days) 449 This Month Last Month Portfolio Balance $77,813,660 $77,080,960 Benchmarks/ References: Town's Average Yield LAIF Yield for month 3 rnc. Treasury 6 mo. Treasury 2 yr. Treasury 5 yr. Treasury (most recent) Prime rate 1.46% 0.45% 0.03% 0.10% 0.40% 1.62% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (06/02/11) 1.00% 2 yr. Fannie Mae (06/17/11) 0.58% 1.51% 0,41% 0.06% 0.12% 0.56% 1.81% 3.25% One year aao $73,918,288 1.92% 0.53% 0.16% 0.22% 0.74% 2.00% 3.25% Compliance: The Town's investments are in compliance with the Town's investment policy dated May 1, 2008 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 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances June 30,2011 Fund Balances - Receipts Disbursements Fi,md Balances - Beginning of Month/Period End of Month/Period Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Month $77,080,960.19 4,346,197.51 (3,613,498.07) $77,813,659.63 $2,590,158.28 43,520,541.94 14 051,261.87 60,161,962.09 17.651 697.54 $77,813,659.63 YTD $73,918,287.52 51,677,115.60 (47,781,743.49) $77,813,659.63 Portfolio Investment Allocation Union MM 4.3% agency TnvestmentFund?. 23 4% Treasury, Agencies, & Corp. Notes 57.8% 80,000,000 - 78,000,000 76,000,000 74,000,000 72,000,000 70,000 000 68,000,000 - 66,000,000 - 64,000,000 - 62,000,000 - 60,0 0, 0 0 0 Treasurer's Fund Balances z 0 v. page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances June 30, 2011 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 Reserve Fund Cert. Of Participation 2002 Series A Interest Fund Cert. of Participation 2002 Series A Const. Fund COP 2010 Library Reserve Fund COP 2010 Library Lease Fund COP 2010 Library ACQ Construction Fund COP 2010 Library COI Fund COP 2010 Library Good Faith Total Restricted Funds: Previous Balance $282,738.82 254,136.26 178,376.29 686,251.19 0.00 44,701.33 1,277,062.50 0.00 8,973,650.25 0.00 0.00 D�osits 21,124.58 Ending Interest Withdrawals Balance $175.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $282,914.12 Note t 254,136.26 Note 199,500.87 Note3 686,251.19 Note4 0.00 Note4 44,701.33 Note4 1,277,062.50 Notes 0.00 Notes 619,960.27 8,353,689.98 Notes 0.00 Notes 0.00 Note $11 696,916.64 $21,124.58 $175.30 $619,960.27 $11,098,256.25 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 wetl 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. Page 3 Town of Los Gatos Statement of Interest Earned June 30, 2011 Current Fiscal Month Year to Date Interest received from Investments $76,201.23 $1,030,834.83 Add: Interest accrued at end of period (see page 5) 142,698.38 142,698.38 Less: Interest accrued at beginning of period (182,413.71) (189,965.15) Interest earned on investments $36,485.90 $983,568.06 Interest by Month July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 101,344.25 95,577.37 100,505.50 78,872.97 96,777.80 64,633.38 79,451.57 102,904.44 61,066.22 73,986.26 36,485.90 983,568.06 Page 4 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report June 30, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Dale Elapsed Maturity Invested Maturity Earned Received Accrued USTreasury Note 08/05/09 1,992,187.50 07/31/11 694 31 725 1.196% 45,303.11 29,673.91 15,629.20 Treasury Note 09/21/09 2,000,000.00 08/31/11 647 62 709 1.002% 35,522.96 28,839.78 6,683.18 USTreasury Note 10/19/06 990,078.13 09/30/11 1715 92 1607 4.721% 219,621.44 200,151.10 19,470.34 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1296 144 1440 4.000% 287,616.84 299,183.33 (11,566.49) FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1589 161 1750 4.959% 212,881.19 198,618.06 14,263.13 USTreasury Note 12/31/09 1,497,539.06 12/31/11 546 184 730 1.083% 24,260.87 22,500.00 1,760.87 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 569 196 765 1.073% 33,309.90 19,152.78 14,157.12 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 709 201 910 1.472% 28,959.09 29,777.78 (818.69) FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 1513 253 1766 4.743% 296,730.24 287,500.00 9,230.24 USTreasury Note 04/15/10 999,375.00 03/31/12 441 275 716 1.054% 12,726.67 9,590.16 3,136.51 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 433 291 724 1.174% 20,898.91 17,500.00 3,398.91 FHLB Coupon Note 11/29/07 2,038,360.00 08/15/12 1309 412 1721 4.170% 304,834.22 297,027.78 7,806.44 GE Corporate Note 01/16/08 1,542,165.00 10/19/12 1261 477 1738 4.587% 244,389.08 256,593.75 (12,204.67) FFCB Coupon Note 11/10/10 1,498,830.00 11/09/12 232 498 730 0.541% 5,154.00 3,729.17 1,424.83 GE Corporate Note 07/29/10 511,955.00 01/08/13 336 558 894 1.791% 8,440.61 6,183.33 2,257.28 Treasury Coupon Note 03/31/11 1,997,968.75 03/31/13 91 640 731 0.676% 3,367.32 3,367.32 FHLMC Coupon Note 03/25/11 1,016,520.00 04/15/13 97 655 752 0.812% 2,193.57 902.78 1,290.79 FHLB Callable Note 07/29/10 1,506,480.00 07/12/13 336 743 1079 1.218% 16,891.07 9,508.33 7,382.74 TIAA Corporate Note 04/11/11 880,446.95 07/15/13 80 746 826 1.334% 2,574.28 2,574.28 FHLB Coupon Note 02/25/11 1,999,080.00 08/16/13 125 778 903 1.271% 8,701.47 8,701.47 FHLB Callable Note 06/27/11 2,500,000.00 09/27/13 3 820 823 0.699% 143.63 143.63 FHLMC Callable Note 08/18/10 1,252,400.00 11/18/13 316 872 1188 1.339% 14,518.37 8,750.00 5,768.37 FHLMC Callable Note 06/09/11 2,001,600.00 12/09/13 21 893 914 1.018% 1,172.33 1,172.33 FFCB Coupon Note 01/24/11 999,900.00 01/24/14 157 939 1096 1.393% 5,991.21 5,991.21 FHLMC Callable Note 05/26/11 1,000,000.00 11/26/14 35 1245 1280 2.263% 2,170.00 2,170.00 FHLB Callable Note 06/15/11 2,007,760.00 06/08/15 15 1439 1454 1.765% 1,456.31 1,456.31 FFCB Callable Note 06/09/11 1,998,500.00 06/09/15 21 1440 1461 1.721% 1,978.84 1,978.84 FNMA Coupon Note 11/10/10 1,503,225.00 09/16/15 232 1539 1771 0.955% 9,124.78 5,250.00 3,874.78 FHLMC Callable Note 10/28/10 750,000.00 10/28/15 245 1581 1826 2.100% 10,571.92 5,156.25 5,415.67 Subtotal 43,509,550.39 Union MM 2,590,158.28 30 30 0.05% 106.44 106.44 Purchased Interest 10,991.55 LAIF N/A 03/31/11 14,051,261.87 06/30/11 91 0 91 0.45% 16,675.98 16,675.98 $60,161,962.09 449 1.46% $1,878,286.67 $1,735,588.29 S142,698.38 Maturity Profile Amount Percent 0-1 year $33,156,771.39 55.11% 1-2 years S8,605,798.75 14.30% 2-3 years S11,139,906.95 18.52% 3-5 years S7,259,485.00 12.07% $60,161,962.09 100.00% Market to Cost Position Report Amortized Market Unrealized Institution Cost Value* Gain (Loss) Union Bank Assets S43,509,550.39 $43,762,167.00 252,616.61 Union M91 2,590,158.28 2,590,158.28 0.00 Purchased Interest 10,991.55 10,991.55 0.00 LAW 14,051,261.87 14,051,261.87 0.00 Totals: S60,161,962.09 S60,414,578.70 $252,616.61 * Source: Treasury and Agency Obligations - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. page 5 Town of Los Gatos Investment Report for the month ended May 31, 2011 Prepared by Linda L. Speicher, Project Manager 10/08/11 Weighted Average Portfolio Yield: 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) Prune rate Town of Los Gatos Summary Investment Information May 31, 2011 1.51% Weighted Average Maturity (days) 425 This Month Last Month One year ago $77,080,960 $76,816,244 $73,910,872 1.51% 0.41% 0.06% 0.12% 0.56% 1.81% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (05/16/11) 1.17% 2 yr. Freddie Mac (02/04/11) 0.75% 1.56% 0.59% 0.07% 0.12% 0.67% 2.12% 3.25% 2.01% 0.56% 0.17% 0.22% 0.77% 2.13% 3.25% Portfolio Maturity Profile 3 -5 years 0 -1 year 60 % Compliance: The Town's investments are in compliance with the Town's investment policy dated May 1, 2008 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 I Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances May 31, 2011 Fluid Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurers Fund Month $76,816,243.88 3,371,288.32 (3,106,572.01) $77,080,960.19 $3,535,717.92 42,499,471.37 14.051.261.87 60,086,451.16 16,994,509.03 $77,080,960.19 YTD $73,918,287.52 47,330,918.09 (44.168.245.421 $77,080,960.19 80,000,000 --" 78,000,000 76,000,000 74,000,000 f. 72,000,000 - 70,000,000 -4 62,000,000 66,000,000 -G 64,000,000 -<?. 62,000,000 -1 60,000,000 �+T Portfolio Investment Allocation Union MM 5.9% -:' 23 4%.... Treasurer's Fund Balances Treasury, Agencies, & Corp. Notes 57.B% page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances May 31, 2011 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 Reserve Fund Cert. Of Participation 2002 Series A Interest Fund Cert. of Participation 2002 Series A Const. Fund COP 2010 Library Reserve Fund COP 2010 Library Lease Fund COP 2010 Library ACQ Construction Fund COP 2010 Library COI Fund COP 2010 Library Good Faith Total Restricted Funds: Previous Balance $282,569.28 254,136.26 178,376.29 686,251.19 0.00 44,701.33 1,277,062.50 0.00 9,806,776.47 0.00 0.00 Deposits Ending Interest Withdrawals Balance $169.54 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $282,738.82 Note t 254,136.26 Note 178,376.29 Note 3 686,251.19 Note 0.00 Note 44,701.33 Note 4 1,277,062.50 Note 5 0.00 Note 833,126.22 8,973,650.25 Notes 0.00 Notes 0.00 0.00 Note 6 12,529,873 32 $0.00 $169.54 $833,126.22 811,696,91664 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. Page 3 Town of Los Gatos Statement of Interest Earned May 31, 2011 Current Fiscal Month Year to Date Interest received from Investments $49,923.22 $954,633.60 Add: Interest accrued at end of period (see page 5) 182,413.71 182,413.71 Less: Interest accrued at beginning of period (158,350.67) (189,965.15) Interest earned on investments $73,986.26 $947,082.16 Interest by Month July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June2011 91,962.40 101,344.25 95,577.37 100,505.50 78,872.97 96,777.80 64,633.38 79,451.57 102,904.44 61,066.22 73,986.26 947,082.16 Page 4 Inslit Lion Security Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report May 31, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Date Cost Date Elapsed Maturity Invested Maturity Earned Received Accmed FHLB Coupon Note 06/08/09 1,988,018.60 06/03/11 722 3 725 1.432% 56,312.89 33,437.50 22,875.39 USTreasury Note 08/05/09 1,992,187.50 07/31/11 664 61 725 1.196% 43,344.76 29,673.91 13,670.85 Treasury Note 09/21/09 2,000,000.00 08/31/11 617 92 709 1.002% 33,875.84 28,839.78 5,036.06 USTreasury Note 10/19/06 990,078.13 09/30/11 1685 122 1807 4.721% 215,779.66 200,151.10 15,628.56 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1266 174 1440 4.000% 280,959.04 299,183.33 (18,224.29) FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1559 191 1750 4.959% 208,862.04 175,493.06 33,368.98 USTreasury Note 12/31/09 1,497,539.06 12/31/11 516 214 730 1.083% 22,927.86 15,000.00 7,927.86 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 539 226 765 1.073% 31,553.66 19,152.78 12,400.88 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 679 231 910 1.472% 27,733.74 29,777.78 (2,044.04) FI-ILB Coupon Note 05/09/07 1,509,255.00 03/09/12 1483 283 1766 4.743% 290,846.63 287,500.00 3,346.63 USTreasury Note 04/15/10 999,375.00 03/31/12 411 305 716 1.054% 11,860.91 9,590.16 2,270.75 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 403 321 724 1.174% 19,450.95 17,500.00 1,950.95 FBLB Coupon Note 11/29/07 2,038,360.00 08/15/12 1279 442 1721 4.170% 297,847.96 297,027.78 820.18 GE Corporate Note 01/16/08 1,542,165.00 10/19/12 1231 507 1738 4.587% 238,574.91 256,593.75 (18,018.84) FFCB Coupon Note 11/10/10 1,498,830.00 11/09/12 202 528 730 0.541% 4,487.54 3,729.17 758.37 GE Corporate Note 07/29/10 511,955.00 01/08/13 306 588 894 1.791% 7,686.98 6,183.33 1,503.65 FIR -MC Coupon Note 11/22/10 999,750.00 03/07/13 190 646 836 0.962% 5,006.42 2,744.44 2,261.98 Treasury Coupon Note 03/31/11 1,997,968.75 03/31/13 61 670 731 0.676% 2,257.21 2,257.21 FIILMC Coupon Note 03/25/11 1,016,520.00 04/15/13 67 685 752 0.812% 1,515.14 902.78 612.36 FNMA Callable Note 06/11/10 1,500,000.00 06/10/13 354 741 1095 1.830% 26,622.74 7,458.33 19,164.41 FBLB Callable Note 07/29/10 1,506,480.00 07/12/13 306 773 1079 1.218% 15,382.94 9,508.33 5,874.61 TIAA Corporate Note 04/11/11 880,446.95 07/15/13 50 776 826 1.334% 1,608.93 1,608.93 FIILB Coupon Note 02/25/11 1,999,080.00 08/16/13 95 808 903 1.271% 6,613.12 6,613.12 FHLMC Callable Note 08/18/10 1,252,400.00 11/18/13 286 902 1188 1.339% 13,140.04 8,750.00 4,390.04 FFCB Coupon Note 01/24/11 999,900.00 01/24/14 127 969 1096 1.393% 4,846.39 4,846.39 FHLMC CallableNote 05/26/11 1,000,000.00 11/26/14 5 1275 1280 2.263% 310.00 310.00 FNMA Coupon Note 11/10/10 1,503,225.00 09/16/15 202 1569 1771 0.955% 7,944.85 5,250.00 2,694.85 FHLMC Callable Note 09/24/10 2,000,000.00 09/24/15 249 1577 1826 2.318% 31,626.41 12,500.00 19,126.41 FHLMC Callable Note 10/28/10 750,000.00 10/28/15 215 1611 1826 2.100% 9,277.40 5,156.25 4,121.15 FHLB Coupon Note 12/16/10 999,750.00 12/16/15 166 1660 1826 2.947% 13,399.44 13,399.44 Subtotal 42,489,208.99 Union Mlvl 3,535,717.92 30 30 0.05% 145.30 Purchased Interest 10,262.38 LAIF N/A 03/31/11 14,051,261.87 06/30/11 61 30 91 0.41% 11,715.56 145.30 11,715.56 $60,086,451.16 425 1.51% $1,943,517.27 S1,761,103.56 S182,413.71 Maturity Profile Amount Percent 0-1 year $36,089,620.46 60.06% 1-2 years S9,605,548.75 15.99% 2-3 years $8,138,306.95 13.54% 3-5 years $6,252,975.00 10.41% S60,086,451.16 100.00% Market to Cost Position Report Amortized Market Unrealized Institution Cost Value* Gain (Loss) Union Bank Assets 542,489,208.99 S42,833,887.75 344,678.76 Union IvIM 3,535,717.92 3,535,717.92 0.00 Purchased Interest 10,262.38 10,262.38 0.00 LAIF 14,051,261.87 14,051,261.87 0.00 Totals: S60,086,451.16 S60,431,129.92 S344,678.76 * Source: Treasury and Agency Obligations - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. page 5 Town of Los Gatos Investment Report for the month ended April 30, 2011 Prepared by Linda L. Speicher, Project Manager 10/08/11 Weighted Average Portfolio Yield: 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 Town of Los Gatos Summary Investment Information April 30, 2011 1.56% Weighted Average Maturity (days) 449 This Month Last Month One year ago $76,816,244 $71,764,763 $76,501,897 1.56% 0.59% 0.07% 0.12% 0.67% 2.12% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Famue Mae (02/01/11) 2 yr. Freddie Mac (02/04/11) 1.27% 0.75% 1.72% 0.50% 0.10% 0.17% 0.79% 2.26% 3.25% 2.01% 0.55% 0.15% 0.24% 1.02% 2.54% 3.25% Compliance: The Town's investments are in compliance with the Towns investment policy dated May 1, 2008 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 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances April 30, 2011 Fund Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Month YTD $71,764,762.97 $73,918,287.52 8,525,565.02 43,959,629.77 (3,474,084.11) (41,061,673.41) $76,816,243.88 $76,816,243.88 $2,732,987.49 43,253,007.83 14.051.261.87 60,037,257.19 16,778,986.69 $76,816,243.88 Portfolio Investment Allocation Union MM 4.6% Treasury, Agencies, & Corp. Notes 57.8% 80.000,000 78,000,000 76,000,000 74,000,000 72,000,000 70,000,000 68,000,000 66,000,000 64,000,000 62,000,000 60,000,000 Treasurer's Fund Balances c 0 0 0 u 8 page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances April 30, 2011 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 Reserve Fund Cert. Of Participation 2002 Series A Interest Fund Cert. of Participation 2002 Series A Const. Fund COP 2010 Library Reserve Fund COP 2010 Library Lease Fund COP 2010 Library ACQ Construction Fund COP 2010 Library COI Fund COP 2010 Library Good Faith Total Restricted Funds: Previous Balance $282,394.20 254,136.26 157,251.71 686,251.19 0.00 58,870.51 1,277,062.50 0.00 10,417,162.28 0.00 0.00 $13,133,128 65 Deposits 21,124.58 $21,124.58 Ending Interest Withdrawals Balance $175.08 0.00 0.00 0.00 0.00 77.78 0.00 0.00 0.00 0.00 0.00 $252.86 14,246.96 610,385.81 $624,632.77 These accounts are not part of the Treasurers fund balances reported elsewhere in this report, as they are for separate and distinct entities. Note I: 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. $282,569.28 254,136.26 178,376 29 686,251.19 0.00 44,701.33 1,277,062.50 0.00 9,806,776.47 0.00 0.00 $12,529,873 32 Note 1 Note 2 Note 3 Note 4 Note 4 Note 4 Note s Note 5 Note 5 Note 5 Note 6 Page 3 Town of Los Gatos Statement of Interest Earned April 30, 2011 Current Fiscal Month Year to Date Interest received from Investments $98,716.45 $904,710.38 Add: Interest accrued at end of period (see page 5) 158,350.67 158,350.67 Less: Interest accrued at beginning of period (196,000.90) (189,965.15) Interest earned on investments $61,066.22 $873,095.90 Interest by Month July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 101,344.25 95,577.37 100,505.50 78,872.97 96,777.80 64,633.38 79,451.57 102,904.44 61,066.22 873,095.90 Page 4 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report April 30, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Date Elapsed Maturity Invested Maturity Earned Received Accmed Treasury Note 11/16/09 753,515.63 05/31/11 530 31 561 0.568% 6,214.75 6,813.52 (598.77) FHLD Coupon Note 06/08/09 1,988,018.60 06/03/11 691 34 725 1.432% 53,895.02 33,437.50 20,457.52 USTreasury Note 08/05/09 1,992,187.50 07/31/11 633 92 725 1.196% 41,321.13 29,673.91 11,647.22 Treasury Note 09/21/09 2,000,000.00 08/31/11 586 123 709 1.002% 32,173.81 28,839.78 3,334.03 USTreasury Note 10/19/06 990,078.13 09/30/11 1654 153 1807 4.721% 211,809.83 200,151.10 11,658.73 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1235 205 1440 4.000% 274,079.32 255,683.33 18,395.99 FFCB Coupon Note 02/22/07 986,060.00 12/08/11 1528 222 1750 4.959% 204,708.91 175,493.06 29,215.85 USTreasury Note 12/31/09 1,497,539.06 12/31/11 485 245 730 1.083% 21,550.41 15,000.00 6,550.41 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 508 257 765 1.073% 29,738.89 19,152.78 10,586.11 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 648 262 910 1.472% 26,467.54 29,777.78 (3,310.24) FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 1452 314 1766 4.743% 284,766.89 287,500.00 (2,733.11) USTreasury Note 04/15/10 999,375.00 03/31/12 380 336 716 1.054% 10,966.29 9,590.16 1,376.13 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 372 352 724 1.174% 17,954.73 17,500.00 454.73 FFD,B Coupon Note 11/29/07 2,038,360.00 08/15/12 1248 473 1721 4.170% 290,628.81 297,027.78 (6,398.97) GE Corporate Note 01/16/08 1,542,165.00 10/19/12 1200 538 1738 4.587% 232,566.93 256,593.75 (24,026.82) FFCB Coupon Note 11/10/10 1,498,830.00 11/09/12 171 559 730 0.541% 3,798.86 3,798.86 GE Corporate Note 07/29/10 511,955.00 01/08/13 275 619 894 1.791% 6,908.24 6,183.33 724.91 FFILMC Coupon Note 11/22/10 999,750.00 03/07/13 159 677 836 0.962% 4,189.58 2,744.44 1,445.14 Treasury Coupon Note 03/31/11 1,997,968.75 03/31/13 30 701 731 0.676% 1,110.10 1,110.10 FHLMC Coupon Note 03/25/11 1,016,520.00 04/15/13 36 716 752 0.812% 814.11 902.78 (88.67) FNMA Callable Note 06/11/10 1,500,000.00 06/10/13 323 772 1095 1.830% 24,291.37 7,458.33 16,833.04 PHLB Callable Note 07/29/10 1,506,480.00 07/12/13 275 804 1079 1.218% 13,824.53 9,508.33 4,316.20 TIAA Corporate Note 04/11/11 880,446.95 07/15/13 19 807 826 1.334% 611.39 611.39 FBLB Coupon Note 02/25/11 1,999,080.00 08/16/13 64 839 903 1.271% 4,455.16 4,455.16 FHLMC Callable Note 08/18/10 1,252,400.00 11/18/13 255 933 1188 1.339% 11,715.77 8,750.00 2,965.77 FFCB Coupon Note 01/24/11 999,900.00 01/24/14 96 1000 1096 1.393% 3,663.41 3,663.41 PI-ILMC Callable Note 02/04/11 1,000,000.00 02/04/14 85 1011 1096 2.002% 4,662.19 4,662.19 FNMA Coupon Note 11/10/10 1,503,225.00 09/16/15 171 1600 1771 0.955% 6,725.59 5,250.00 1,475.59 FHLMC Callable Nate 09/24/10 2,000,000.00 D9/24/15 218 1608 1826 2.318% 27,688.99 12,500.00 15,188.99 FHLMC Callable Note 10/28/10 750,000.00 10/28/15 184 1642 1826 2.100% 7,939.73 5,156.25 2,783.48 FELE Coupon Note 12/16/10 999,750.00 12/16/15 135 1691 1826 2.947% 10,897.14 10,897.14 Subtotal 43,242,724.62 Union MN! 2,732,987.49 30 30 0.05% 112.31 112.31 Purchased Interest 10,283.21 LAIF N/A 03/31/11 14,051,261.87 06/30/11 30 61 91 0.59% 6,786.84 6,786.84 S60,037,257.19 449 1.56% $1,879,038.58 $1,720,687.91 S158,350.67 Maturity Profile Amount Percent 0-1 year $36,040,426.49 60.03% 1-2 years S9,605,548.75 16.00% 2-3 years S9,138,306.95 15.22% 3-5 years S5,252,975.00 8.75% S60,037,257.19 100.00% Market to Cost Position Report Amortized Market Unrealized Institution Cost Values Gain (Loss/ Union Bank Assets S43,242,724.62 S43,607,152.00 364,427.38 Union 1s41v1 2,732,987.49 2,732,987.49 0.00 Purchased Interest 10,283.21 10,283.21 0.00 LATE 14,051,261.87 14,051,261.87 0.00 Totals: S60,037,257.19 $60,401,684.57 S364,427.38 ° Source: Treasury and Agency Obligations - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. page 5