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Staff Report
PREPARED BY: STEVE CONWAY Finance Director/Town Treasurer Reviewed by: Assistant Town Manager Town Attorney Finance N:\SHARE\COUNCIL REPORTS\2016\08-02-16\03 Invest Report 4th Quarter\FINAL Staff Report - 4th Quarter Investment Report.doc MEETING DATE: 08/2/16 ITEM NO: 3 COUNCIL AGENDA REPORT DATE: JULY 15, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: APPROVE FOURTH QUARTER INVESTMENT REPORT (APRIL THROUGH JUNE 2016) FOR FISCAL YEAR 2015/16 RECOMMENDATION: Approve the attached Fourth Quarter Investment Report (April through June 2016) for Fiscal Year 2015/16. DISCUSSION: Attached for Council consideration and approval is the Fourth Quarter Investment Report for FY 2015/16, for the period April through June 2016. The Town’s weighted portfolio yield of 0.85% is still outperforming the Local Agency Investment Fund (LAIF) yield of 0.57% (difference of 28 basis points). Therefore, staff continues to replace matured or called investments with similar investments with respect to maturity and credit quality. For the quarter, the Town’s weighted average rate of return increased 10 basis points from 0.75% rate earned in the third quarter. In mid-December 2015, for the first time since before the financial crisis in 2008, the Federal Open Markets Committee (FOMC) raised the Fed funds target rate. The Committee increased its benchmark rate 0.25% to a range of 0.25% to 0.50%. Despite this action, interest rates fell across most of the maturity spectrums over the first quarter of 2016. The FOMC voted to maintain its Fed funds target rate at 0.25% to 0.50% at their June 2016 meeting. The Federal Reserve governors indicated that the economy may warrant an interest rate increase as some point this summer; however, the Federal Reserve meeting took place before the United Kingdom voted to exit the European Union, which led to increased market volatility and uncertainty. Employment growth slowed in the quarter with May being the weakest month for job creation in the last five years. The unemployment rate of 4.7% has decreased by more than 50% since its high in October, 2009. The market expected interest rates to increase in 2016, but due to market uncertainty, an increase in the fall of 2016 appears unlikely. Staff is concentrating on short-term (two years or less in maturity) for its new investments with a potential shift from treasuries as they mature to high quality corporate medium term notes (higher yield PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: APPROVE FOURTH QUARTER INVESTMENT REPORT (APRIL THROUGH JUNE 2016) FOR FISCAL YEAR 2015/16 JULY 15, 2016 DISCUSSION (Cont’d): while preserving safety of principal) as the rewards for longer term investments in the three to five year maturity do not have adequate spreads to justify the risk of holding longer term maturities. Attachment: 1. Fourth Quarter Investment Report for FY 2015/16 (April through June 2016) ATTACHMENT 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances April 30, 2016 Month YTD Fund Balances - Beginning of Month/Period $67,944,455.98 $70,832,337.72 Receipts 1,467,266.49 27,918,719.56 Disbursements (3,279,285.84) (32,618,620.65) Fund Balances - End of Month/Period S66,132,436.63 $66,132,436.63 Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund $133,721.00 48,174,731.66 4,186,613.48 52,495,066.14 13,637,370.49 $66,132,436.63 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 0.25% 7.98% US Govt Agencies & Corp. Bonds 91.77% 74,000.000 72.000,000 70.000.000 68.000.000 66.000,000 64,000.000 62.000,000 60.000.000 58,000,000 56,000.000 Treasurer's Fund Balances h 0 e • .6 page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances April 30,2016 Previous Balance Non -Treasury Funds: Deposits Ending Interest Withdrawals Balance Cert. of Participation 2002 Series A Reserve Fund $ 686,268.16 $ - $ 5.85 $ - $ 686,274.01 Note I Cert. Of Participation 2002 Ser A Lease Pytnt Fund 0.35 0.00 0.00 0.00 0.35 Note I Cert. of Participation 2002 Series A Const. Fund 12.92 0.01 12.93 Note I COP 2010 Library Reserve Fund 1,277,176.66 0.00 77.72 0.00 1,277,254.38 Note 2 Total Restricted Funds: $1,963.458.09 $0.00 $83.58 $0.00 $I,963,541.67 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. Page 3 Town of Los Gatos Statement of Interest Earned April 30, 2016 Interest by Month July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 $37,891.24 39,641.24 39,140.87 37,799.14 36,192.77 31,046.35 43,394.68 36,795.40 40,922.73 36,652.78 $379,477.20 Page 4 Town of Los Gatos Investment Schedule April 30, 2016 Maturity Yield to Interest Interest Days Deposit Par Original Market Purchased Date or Maturity Received Earned to nstitution Security Date Value Cost Value Interest Call Date or Call to Date Current FY Maturi PFIZER Corporate Note 03 11 15 750.000.00 753.037.50 753.594.38 5 152017 0.91% $ 5,477.08 $ 5.722,61 380 IBM Coupon Note 11 13 12 750.000.00 781505.00 752,382.75 7 22 2016 0.76% $ 46.678.12 8 4,860.81 83 Treasury Note 08 16. 11 1.000.000.00 1,025.390.63 1.002.879.00 7 312016 0.97% $ 66,847.83 $ 8,258.08 92 FNMA Callable Note 0328 14 1,000,000.00 1,014.600.00 1.003.125.00 9 28 2016 0.66% $ 25.000.00 $ 5,578.54 151 Toyota Motor Credit Coupon Note 01.00.00 500,000.00 502.200.00 501,785.00 105 2017 1.05% $ 4,600.69 $ 4.257.97 523 FNMA Callable Note 05 14,13 1.500,000.00 1,500,000.00 1,500,060.00 11 142016 0.5504 $ 20,625.00 $ 6,893.84 198 Treasury Note 0610.14 1.000.000.00 1.000.000.00 1,000.820.00 11 152016 0.63% $ 8,933.42 $ 5.222.60 199 Treasury Note 06,10,14 1.000.000.00 1,004,062.50 1.002.422.00 1 31 2017 0.72% $ 14,357.73 $ 6,028.97 276 FNMA Callable Note 04.,04,13 4.000,000.00 4,004.800.00 4.004.400.00 3 14 2017 0.72% $ 88,333.33 $ 24,051.83 318 Treasury Note 05 27.14 2.000.000.00 2,015,156.25 2,007.656.00 $ 31 2017 0.73% $ 36,885.25 $ 12,263.19 335 Treasury Note 06 23 14 500,000.00 499,804.69 501,347.50 4 30 2017 0.89% $ 5.920.52 $ 3,712.99 365 Berk Hath Coupon Note 01 I 1 13 500,000.00 509,280.00 503.982.00 5 152017 1.61% $ 22,755.56 $ 4,899.19 380 FNMA Callable Note 10. 19: 12 1,500,000.00 1.504.050.00 1.505.610.00 9 202017 0.94% $ 51,291.67 $ 11,846.85 508 FNMA Callable Note I 3012 1,000.000.00 1,003.200.00 1.003,740.00 9 20 2017 0.93% $ 33.055.56 $ 7,800.04 508 FNMA Callable Note 1204 12 1.000,000.00 1,002,750.00 1.003.740.00 9 20 2017 0.94% $ 32,916.67 $ 7.876.88 508 FFCB Coupon Note 10 18,12 2.000,000.00 1.996.960.00 2,000,388.00 9 212017 0.86% $ 56,855.00 $ 14,386.63 509 FHLB Coupon Note 12 12 12 2,000,000.00 1,998.720.00 1,997.860.00 12 82017 0.76% $ 43,58333 $ 12,748.52 587 FNMA Callable Note 04 17 13 1.000.000.00 1,004,400.00 1,004,410,00 3: 5 2018 1.03 % $ 32,437.50 $ 8,648.02 674 AAPL Corporate Note 0516.13 1.000.000.00 991,680.01 1.000.424.00 5 32018 1.17% $ 24.638.89 $ 9,755.83 733 FHLB Coupon Note 692015 1.000,000.00 997,710.00 1,005.150.00 8272018 1.22% $ 8.241.66 $ 10,204.01 849 Treasury Note 692015 1.000.000.00 1,000,468.75 1.001.133.00 6 302017 0.73% $ 4.185.08 $ 6.077.01 426 Treasury Note 692015 1.000.000.00 1.004.140.63 1.004.375.00 9 15 2017 0.82% $ 7.663.04 $ 6,832.77 503 Treasury Note 6112015 1,000,000.00 990,468.75 999.375.00 4 15 2018 1.09% $ 6.331.97 $ 9.065.04 715 FHLB Coupon Note 6 11 2015 2,000.000.00 1,991,820.00 2.004.880.00 5 25 2018 1.19% $ 10.033.33 $ 19,860.18 755 Treasury Note 731 2015 1.000.000.00 1.010.625.00 1,012.266.00 6 30 2018 1.00% 8 5.716.71 $ 7,588.35 791 FFCB Coupon Note 7302015 2,500,000.00 2.509.525.00 2.511.175.00 12182017 0.96% $ 10,781.25 $ 18,186.20 597 FHLB Coupon Note 820 2015 1,2250.000.00 1.247,075.00 1.252.212.50 725.2018 1.13% $ 5,979.17 $ 9,827.91 816 FHLB Coupon Note 8252015 1000.000.00 999.500.00 1.001.770.00 7 252018 1.07% $ 4.63750 $ 7.279.92 816 FFCB Coupon Note 827 2015 1,000,000.00 1002.060.00 1.000.900.00 4 242017 0.63% $ 7.437.50 5 4,235.71 359 Walmart Corporate Note 9,25 2015 1.000.000.00 998,960.00 1,005 286.00 4 1 12018 1.17% $ 6.125.00 $ 6,963.23 711 Disney Corporate Note 9,252015 995,000.00 995.298.50 999.204.87 12 1 2017 1.09% $ 2.006.58 $ 6,455.47 580 FFCB Coupon Note 10272015 1,000.000.00 1.048,230.00 1.038.090.00 612018 0.86% $ 2,597.22 $ 4,550.85 762 FHLB Coupon Note 1027.2015 1.000,000.00 1.005.030.00 1,004.370.00 9 14 2018 0.95% 8 4.281.25 $ 4,844.39 867 FFCB Coupon Note 10.29 2015 1,500,000.00 1,494,840.00 1.497.270.00 1092018 0.99% $ 5.833.33 $ 7,498.82 892 Chevron Corporate Note 12'152015 1.250,000.00 1,252,262.50 1255,965.00 1,306.67 11 92017 1.25% $ (1.306.67) $ 5.841.00 558 Treasury Note 126 2016 1.500.000.00 1,494.902.34 1.499,82450 2�28 2018 0.91% $ 1,050.82 $ 3,561.95 669 Wells Famo Corporate Note 22 2016 1,000000.00 1,001.680.00 1.008.164.00 137.50 122 2018 1.56% $ (137.50) $ 3.772.75 632 FIILMC Coupon Note 4292016 1.000.000.00 1.008.050.00 1,009,530.00 4,950.00 12.172_018 1.04% $ (4,950.00) $ 28.62 961 FFCB Coupon Note 4 29.2016 1.000.000.00 1.001.870.00 1.003,520.00 1,224.44 321 2019 1.09% $ (1,224.44) $ 30.01 1055 Subtotal $ 48.167.113.05 $ 48,165.086.50 $ 7,618.61 $ 706.475.95 $ 307,517,54 BNY MM 133,721.00 133.721.00 Purchased Interest 7.618.61 7,618.61 LAIF N,A 12 31 14 4.186.613.48 4.186.613.48 13.886.76 $52,495,066.14 $52,493,039.59 $ 706,475.95 $ 321.404.31 Bank of the West Matured Assets SO (Mississippi Power) Coupon Note 122 18 12 500,000.00 526,020.00 7102015 0.96% $ 41,843.06 $ 5,719.63 Treasury Note 081611 1,000.000.00 1.042.812.50 7.31 2015 0.65% $ 69,239.13 $ 567.83 FHLMC Callable Note 1030 14 2.500,000.00 2.500.000.00 7.30 2015 0.75% $ 45,312.50 $ 1,541.10 FHLB Callable Note 0220 15 1.250,000.00 1,248,750.00 8202015 0.70% $ 6,250.00 $ 1.225.50 FHLB Callable Note 8,262014 1,000.000.00 1,000,500.00 8 26 2015 0.52% $ 5,700.00 $ 812.05 FHLB Callable Note 3.4 2015 1,000,000.00 1.000.500.00 825 2015 0.94% $ 10,237.50 $ 1.450.04 GE Corporate Note 9.17.2013 2.000.000.00 2,133.600.00 921 2015 1.01% $ 175.972.22 $ 4,789.90 FHLMC Callable Note 11,282014 2.000,000.00 1,995,000.00 9,25 2015 1.37% $ 27,950.00 $ 7,642.44 FHLB Callable Note 4272015 2.000,000.00 2.001,880.00 1027 2015 0.89% $ 21,600.00 $ 5.819.68 FHLMC Callable Note 4,292015 1.500.000.00 1,499.250.00 10,29 2015 1.50% $ 19,500.00 8 6,960,29 Berk Hath Coupon Note 0126112 1,250.000.00 1.315.137.50 12,152015 1.08% $ 119,012.15 $ 6,384.05 FHLMC Callable Note 04/27/15 1.500.000.00 1,500,945.00 4/272016 0.81% $ 13,125.00 $ 10.079.83 FHLB Callable Note 0429,15 500,000.00 500.000.00 4,292016 1.22% $ 6.100.00 $ 5,080.55 Total Investments "Matured" Maturity Profile 0-1 year 1-2 years 23 years 3-5 years p S16,263.450.00 $ 1,268.317.51 $ 379,477.20 Amount $18,176,332.16 $21,522.303.97 S12.796.430.01 $0.00 $51495.066.14 Market to Cost Position Report Amortized Institution Cost BNY Assets $48.167.113.05 BNY MM 133,721.00 Purchased Interest 7.618.61 LAIF 4.186.613.48 Totals: $52,495,066.14 Page 5 Local Agency Investment Fund 7.97% Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances May 31, 2016 Month YTD Fund Balances - Beginning of Month/Period $66,132,436.63 $70,832,337.72 Receipts 1,515,551.49 29,434,271.05 Disbursements (2,348,767.35) (34,967,388.00) Fund Balances - End of Month/Period $65,299,220.77 $65,299,220.77 Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund $174,844.84 48,173,424.99 4,186,613.48 52,534,883.31 12,764,337.46 $65,299,220.77 Portfolio Investment Allocation BNY MM 0.33% US Govt Agencies & Corp. Bonds 91.70% 74,000.000 72.000,000 70.000.000 68.000,000 66,000.000 64,000.000 62.000.000 60,000.000 58,000.000 Treasurer's Fund Balances 0 z L 4 page 2 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) 10 Yr. Treasury Town of Los Gatos Summary Investment Information May 31, 2016 0.85% Weighted Average Maturity (days) 474 This Month Last Month One year ago $65,299,221 $66,132,437 $68,299,850 0.85% 0.55% 0.29% 0.45% 0.88% 1.37% 1.85% 0.85% 0.52% 0.21% 0.38% 0.78% 1.29% 1.83% 0.73% 0.23% 0.01% 0.08% 0.62% 1.51% 2.12% 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 Non -Treasury Restricted Fund Balances May 31, 2016 Previous Balance Non -Treasury Funds: Deposits Ending Interest Withdrawals Balance Cert. of Participation 2002 Series A Reserve Fund $ 686,274.01 $ - $ 5.66 $ - $ 686,279.67 Note I Cert. Of Participation 2002 Ser A Lease Pymt Fund 0.35 0.00 0.00 0.00 0.35 Note t Cert. of Participation 2002 Series A Const. Fund 12.93 0.00 12.93 Note 1 COP 2010 Library Reserve Fund 1,277,254.38 0.00 58.34 0.00 1,277,312.72 Note 2 Total Restricted Funds: $1,963,541.67 $0.00 $64.00 $0.00 $1,963,605.67 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. Page 3 Town of Los Gatos Statement of Interest Earned May 31, 2016 Interest by Month July 2015 $37,891.24 August 2015 39,641.24 September 2015 39,140.87 October 2015 37,799.14 November 2015 36,192.77 December 2015 31,046.35 January 2016 43,394.68 February 2016 36,795.40 March 2016 40,922.73 April 2016 36,652.78 May 2016 39,989.42 June 2016 $419,466.62 Page 4 Town of Los Gatos Investment Schedule May 31, 2016 Maturity Yield to Interest Interest Days Deposit Par Original Market Purchased Date or Maturity Received Earned to Institution Security Date Value CPA Value Interest CaI1 Date or Call to Da a Current FY Maturity PFIZER Corporate Note 03 11 15 750,000.00 753,03750 750,976.88 5/152017 0.91% 6 9,602.08 $ 6.304.26 349 IBM Coupon Note 11 13 12 750.000.00 782.505.00 751,497.75 7/222016 0.76% $ 46,678.12 $ 5.354.86 52 Treasury Note 08 1611 1.000.000.00 1,025,390.63 1.001.975.00 7/312016 0.97% $ 66,847.83 $ 9,097.42 61 FNMA Callable Note 03 25 14 1.000,000.00 1,014.600.00 1,002.453.00 928.2016 0.66% $ 25,000.00 $ 6,145.54 120 Toyota Motor Credit Coupon Note 01 00,00 500,000.00 502,200.00 500,920.00 10 5 2017 1.05% $ 4,600.69 $ 4,705.42 492 FNMA Callable Note 05 14,13 1,500,000.00 1.500,000.00 1.499,610.00 1 1 142016 0.55% $ 24.750.00 $ 7,594.52 167 Treasury Note 0610.14 1.000.000.00 1,000,000.00 1.000,341.00 11 15 2016 0.63% $ 12,058.42 6 5.753.42 168 Treasury Note 0610,14 1.000.000.00 1,004,062.50 1.001,563.00 1312017 0.72% $ 14,357.73 $ 6.641.75 245 FNMA Callable Note 04 04 13 4,000,000.00 4,004,800.00 4.000.640.00 3 14 2017 0.72% 8 88,333.33 $ 26,496.44 287 Treasury Note 05 27 14 2.000.000.00 2.015,156.25 1004,924.00 3 31 2017 0.73% $ 36.885.25 $ 13,509.61 304 Treasury Note 0623,14 500,000.00 499.804.69 500,732.50 4 30.2017 0.89% $ 8,108.02 $ 4,090.38 334 Berk Hath Coupon Note 01 1 1 13 500,000.00 509,280.00 503,385.50 5 15 2017 1.61 % $ 26,755.56 $ 5,397.14 349 FNMA Callable Note 10. 19 12 1.500.000.00 1.504.050.00 1.303,057.00 9 202017 0.94% $ 51,291.67 $ 13,050.96 477 FNMA Callable Note 11 30 12 1,000,000.00 1,003.200.00 1,002,038.00 9 20 2017 0.93% $ 33.055.56 $ 8,592.83 477 FNMA Callable Note 120412 1,000,000.00 1,002.750.00 1.001038.00 9 202017 0.94% $ 32,916.67 $ 8,677.48 477 FFCB Coupon Note 10 18.12 2.000.000.00 1.996.960.00 1.998,160.00 921 2017 0.86% $ 56.855.00 $ 15.848.88 478 FHLB Coupon Note 12 12 12 2,000,000.00 1.998.720.00 1,996.440.00 1282017 0.76% $ 43,583.33 $ 14,044.27 556 FNMA Callable Note 04 17 13 1,000,000.00 1,004,400.00 1,002,740.00 3 5 2018 1.03 % $ 32.437.50 $ 9,527.00 643 AAPL Corporate Note 05 16 13 1.000.000.00 991.680.01 998,690.00 5 32018 1.17% $ 29.638,89 $ 10,747.41 702 FHLB Coupon Note 6 9 2015 1,000,000.00 997,710.00 1.003.090.00 8 27.2018 1.22% $ 8,241.66 $ 11,241.14 818 Treasury Note 692015 1.000,000.00 1,000,468.75 999,922.00 6 302017 0.73% $ 4.185.08 $ 6,694.67 395 Treasury Note 6 92015 1.000.000.00 1.004.140.63 1.002,734.00 9 15 2017 0.82% $ 7.663,04 $ 7.527.25 472 Treasury Note 611 2015 1,000,000.00 990,468.75 997.695.00 4 15 2018 1.09% $ 6.331.97 $ 9.986.40 684 FHLB Coupon Note 6 112015 2.000,000.00 1,991,820.00 2.002,540.00 5 25 2018 1.19% 8 20,533.33 $ 21,878.75 724 Treasury Note 731.2015 1.000000.00 1.010.625.00 1.009.648.00 6 30 2018 1.00% $ 5.716,71 6 8,446.89 760 FFCB Coupon Note 7 302015 2.500,000.00 2,509.525.00 2.508.300.00 12 18 2017 0.96% $ 10,781.25 $ 20.236.28 566 FHLB Coupon Note 820 2015 1250.000.00 1,247,075.00 1,249,875.00 7 25 2018 1.13% 6 5.979.17 $ 11,027.38 785 FHLB Coupon Note 825 2015 1.000,000.00 999.500.00 999,900.00 7 25 2018 1.07% $ 4.637.50 $ 8,186 25 785 FFCB Coupon Note 8272015 1,000.000.00 1.002,060.00 1.000.110.00 4242017 0.63% $ 7,437.50 $ 4,767.31 328 Walmart Corporate Note 9 25 2015 1,000.000.00 998,960.00 1,002.665.00 4 112018 1.17% 8 6.125.00 $ 7,953.41 680 Disney Corporate Note 925 2015 995.000.00 995,298.50 996,484.54 12 1 2017 1.09% $ 2,006.58 $ 7.373.45 549 FFCB Coupon Note 10,27 2015 1.000000.00 1.048.230.00 1.035.400.00 6 1 2018 0.86% $ 2,597.22 $ 5,309.33 731 FHLB Coupon Note 1027 2015 1,000,000.00 1,005..030.00 1,002.390.00 9 142018 0.95% $ 4,281.25 $ 5,651.78 836 FFCB Coupon Note 10'29 2015 1.500.000.00 1.494.840.00 1,494.405.00 1092018 0.99% $ 5,833.33 $ 8.762.21 861 Chevron Corporate Note 1215 2015 1.250,000.00 1,252.262.50 1.253.371.25 11 9 2017 1.25% $ 7,068.33 $ 7.162.68 527 Treasury Note 126 2016 1.500.000.00 1,494,902.34 1,497,246.00 228 2018 0.91% $ 1.050.82 $ 4,724.28 638 Wells Fargo Corporate Note 222016 1.000,000.00 1.001.680.00 1.005.909.00 137.50 122 2018 1.56% $ (137.50) $ 5.101.79 601 FHLMC Coupon Note 4 29 2016 1.000.000.00 1,008.050.00 1.006.940.00 4,950.00 12,17 2018 1.04% $ (4.950.00) $ 915.79 930 FFCB Coupon Note 4 29 2016 1.000.000.00 1.001.870.00 1,001.440.00 1,224.44 321 2019 1.09% $ (1.224.44) $ 960.32 1024 Subtotal $ 48,167,113.05 $ 48,092.246.42 $ 6.311.94 $ 747.913.45 $ 345,486.92 BNY MM 174,844.84 174,844.84 Purchased Interest 6.311.94 6,311.94 LAIF NA 12.31.14 4.186.613.48 4.186,613.48 15,906.80 $52,534,883.31 $52,460.016.68 $ 747,913.45 $ 361,393.73 Bank of the West Matured Assets SO (Mississippi Power) Coupon Note 1218122 500,000.00 526,020.00 7102015 0.96% $ 41,843.06 $ 5,719.63 Treasury Note 08 16 11 1.000.000.00 1.042,812.50 731 2015 00.6735Z $ 69,239.13 $ 567.83 FHLMC Callable Note 10 1014 2500.000.00 2500.000.00 730 2015 $ 45.312.50 $ 1,541.10 FHLB Callable Note 02 20 15 1,250.000.00 1,248,750.00 8 20 2015 0.70% $ 6,250.00 $ 1.225.50 FHLB Callable Note 826 2014 1,000.000.00 1,000,500.00 826 2015 0.32 % $ 5,700.00 $ 812.05 FHLB Callable Note 3,42015 1,000.000.00 1.000.500.00 8252015 0.94% $ 10,237.50 $ 1,450.04 GE Corporate Note 9.17 2013 2.000.000.00 2.133.600.00 9 21 2015 1.01% $ 175.972.22 $ 4,789.90 FHLMC Callable Note 11 28 2014 2.000.000.00 1.995,000.00 9252015 1.37% $ 27,950.00 $ 7.642.44 FHLB Callable Note 4 272015 2,000.000.00 2,001,880.00 10.27 2015 0.89% $ 21,600.00 $ 5,819.68 FHLMC Callable Note 4,29.,2015 1.500,000.00 IA99,250.00 10 29 2015 1.50% $ 19.500.00 $ 6,960.29 Berk Hath Coupon Note 01/26,12 1,250,000.00 1,315.137.50 12 15 2015 1.08% $ 119,012.15 $ 6.384.05 FHLMC Callable Note 04/27,15 1,500,000.00 1,500.945.00 4 27 2016 0.81 % $ 13,125.00 $ 10,079.83 FHLB Callable Note 0429/15 500,000.00 500.000.00 429 2016 1.22% $ 6,100.00 $ 5,080.55 Total Investments "Matured" Maturity Profile 0-1 year 1-2 years 2-3 years 3-5 years p $16,263.450.00 $ 1,309.755.01 $ 419.466.62 Amount $19.478,466.83 $21.251.666.48 $11.804.750.00 $0.00 $52.534.883.31 Market to Cost Position Report Amortized Institution Cost BNY Assets $48,167,113.05 BNY MM 174.844.84 Purchased Interest 6,311.94 LAIF 4.186.613.48 Totals: $52,534.883.31 Page 5 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) 10 Yr. Treasury Town of Los Gatos Summary Investment Information June 30, 2016 0.85% Weighted Average Maturity (days) 446 This Month Last Month One year ago $62,500,546 $65,299,221 $65,756,907 0.85% 0.57% 0.26% 0.35% 0.58% 0.99% 1.44% 0.85% 0.55% 0.29% 0.45% 0.88% 1.37% 1.85% 0.78% 0.30% 0.01 % 0.11% 0.64% 1.65% 2.35% 3 - 5 years 2 - 3 years 25% Portfolio Maturity Profile 30% 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 Local Agency Investment Fund 7.96% 74.000,000 72,000,000 70.000,000 68.000.000 66.000,000 64.000,000 62.000.000 60,000,000 58,000.000 f0 0 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances June 30, 2016 Fund Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Portfolio Allocation: BNY MM US Govt Agencies & Corp. Bonds Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Month $65,299,220.77 1,292,406.21 (4,091,080.67) $62,500,546.31 $233,030.26 48,168,474.99 4,186,613.48 52,588,118.73 9,912,427.58 S62.500,546.31 Portfolio Investment Allocation BNY MM 0.44% YTD $70,832,337.72 30,726,677.26 (39,058,468.67) $62,500,546.3 I US Govt Agencies & Corp. Bonds 91.60% Treasurer's Fund Balances 'o A page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances June 30, 2016 Previous Balance Non -Treasury Funds: Deposits Ending Interest Withdrawals Balance Cert. of Participation 2002 Series A Reserve Fund $ 686.279.67 $ - $ 5.85 $ Cert. Of Participation 2002 Ser A Lease Pymt Fund 0.35 0.00 0.00 Cert. of Participation 2002 Series A Const. Fund 12.93 0.00 COP 2010 Library Reserve Fund I.277.312.72 0.00 58.93 - $ 686.285.52 0.00 0.35 12.93 0.00 1,277,371.65 Total Restricted Funds: $I,963,605.67 $0.00 $64.78 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report. as they are for separate and distinct entities. $0.00 $I.963,670.45 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 1 Note 1 Note 1 Note 2 Page 3 Town of Los Gatos Statement of Interest Earned June 30, 2016 Interest by Month July 2015 $37,891.24 August 2015 39,641.24 September 2015 39,140.87 October 2015 37,799.14 November 2015 36,192.77 December 2015 31,046.35 January 2016 43,394.68 February 2016 36,795.40 March 2016 40,922.73 April 2016 36,652.78 May 2016 39,989.42 June 2016 38,670.40 $458,137.02 Page 4 Town of Los Gatos Investment Schedule June 30, 2016 Maturity Yield to Interest Interest Days Deposit Par Original Market Purchased Date or Maturity Received Earned to Institution Securi Date Value LOX Value Interest Call Date or Call to Date Current FY Maturi PFIZER Corporate Note 03 11.15 750.000.00 753.037.50 751,728.75 5/152017 0.91% $ 9.602.08 $ 6.867.13 319 IBM Coupon Note 1 1 13,12 750,000.00 782.505.00 750,440.25 7 ,222016 0.76% $ 46,678.12 $ 5.832.97 22 Treasury Note 0S 16 11 I,000,000.00 1,025,390.63 1.001,079.00 7 312016 0.97% 8 66,847.83 $ 9,909.69 31 FNMA Callable Note 03 23: 14 1.000.000.00 1.014.600.00 1.001.981.00 9,282016 0.66% $ 25.000.00 $ 6,694.25 90 Toyota Motor Credit Coupon Note 01 00,00 500,000.00 502,200.00 502.035.50 10,52017 1.05 % $ 4,600.69 $ 5.138.43 462 FNMA Callable Note 05 14 13 1,500.000.00 1.500.000.00 1,500,750.00 11 142016 0.55% $ 24.750.00 $ 8,272.60 137 Treasury Note 06 10:14 1,000.000.00 1.000,000.00 1.000.977.00 II 152016 0.63% $ 12.058.42 $ 6,267.12 138 Treasury Note 0610,14 1.000,000.00 1.004.062.50 1.002.491.00 1312017 0.72% $ 14.357,73 $ 7,234.76 215 FNMA Callable Note 04 04 13 4.000,000.00 4.004,800.00 4.005.840.00 3 14 2017 0.72% 5 88,333.33 $ 28,862.19 257 Treasury Note 05 27 14 2.000,000.00 2.015.156.25 2.007.424.00 3 31 2017 0.73% $ 36,885.25 $ 14,715.83 274 Treasury Note 06 23 14 500,000.00 499,804.69 501,519.00 4 30 2017 0.89% $ 8.108.02 $ 4,455.59 304 Berk Hath Coupon Note 01 11 13 500.000.00 509,280.00 504,147.50 5 15 2017 1.61% $ 26,755.56 5 5,879.03 319 FNMA Callable Note 10 19 12 1.500.000.00 1.504.050.00 1,507,071.00 9 20 2017 0.94% $ 51,291.67 $ 14,216.22 447 FNMA Callable Note 11 3012 1,000,000.00 1.003.200.00 1.004,714.00 9202017 0.93% $ 33.055,56 $ 9,360.05 447 FNMA Callable Note 12 04 12 1,000.000.00 1,002,750.00 1,004,714.00 9 202017 0.94% $ 32.916.67 $ 9,452.25 447 FFCB Coupon Note 10 18 12 2.000.000.00 1.996.960.00 2.004.940.00 9212017 0.86% $ 56,855.00 $ 17,263.96 448 FHLB Coupon Note 12 12 12 2,000,000.00 1,998.720.00 2.003.000.00 122 8 2017 0.76% $ 51,083.33 $ 15.298.22 526 FNMA Callable Note 04 1713 1.000,000.00 1,004.400.00 1,007.260.00 3 52018 1.03 % 5 32.437.50 $ 10,377.63 613 AAPL Corporate Note 05 16 13 1.000.000.00 991.680.01 1.002.461.00 5 ?2QI8 1.17% $ 29.fi38.89 $ 11,707.00 672 FHLB Coupon Note 692015 1,000.000.00 997,710.00 1.008.940.00 8^_72018 1.22% $ 8,241.66 $ 12.244.82 788 Treasury Note 6 92015 1,000.000.00 1,000.468.75 1,002,305.00 6 302017 0.73% 8 7,935.08 $ 7,292.41 365 Treasury Note 692015 1.000.000.00 1,004,140.63 1.005.273.00 9152017 0.82% $ 7,663.04 $ 6.199.33 442 Treasury Note 6 11 2015 1,000,000.00 990,468.75 1,002,695.00 4 15.2018 1.09% $ 6,331.97 $ 10,878.04 654 FHLB Coupon Note 6 11 2015 2.000,000.00 1,991.820.00 2,012,160.00 5/25/2018 1.19% 5 20,533.337 $ 23,832.21 694 Treasury Note 7 31 2015 1.000.000.00 1.010.625.00 1.015.195.00 680�?018 1.00% $ 12.591.71 5 9,277.73 730 FFCB Coupon Note 730 2015 2.500,000.00 2,509.525.00 2.516.275.00 12/182017 0.96% $ 24,843.75 $ 22,220.23 536 FHLB Coupon Note 820 2015 1.250..000.00 1.247.075.00 I,257,000.00 7125,2018 1.13 % $ 5.979.17 $ 12,188.15 755 FHLB Coupon Note 825 2015 1,000,000.00 999.500.00 1.005.600.00 7252018 1.07°1° $ 4.637,50 $ 9,063.35 755 FFCB Coupon Note 8 27 2015 1.000,000.00 1.002,060.00 1,001.300.00 42242017 0.63% $ 7,437.50 $ 5,281.77 298 Waknart Corporate Note 9'25 2015 1.000.000.00 998,960.00 1,005.065.00 4 I I2018 1.17% $ 6,125.00 $ 8,911.65 650 Disney Corporate Note 925 2015 995.000.00 995.298.50 999,446.66 I_ 1 2017 1.09% $ 7.479.08 $ 8,261.82 519 FFCB Coupon Note 10 27 2015 1,000.000.00 1.048.230.00 1.038.640.00 61 0.86% $ 16,347.22 $ 6.04333 701 FHLB Coupon Note 10 27 2015 1.000.000.00 1,005.030.00 1,008,930.00 9. N 2018 0.95% $ 4,281.25 $ 6,433.14 806 FFCB Coupon Note 1029 2015 1.500.000.00 1.494.840.00 1.502,985.00 10 92018 0.99% $ 5,833.33 8 9.984.84 831 Chevron Corporate Note 12 15 2015 1,250,000.00 1.252.262.50 1.255.306.25 1192017 1.25% $ 7.068.33 $ 8.441.73 497 Treasury Note 126 2016 1.500.000.00 1.494,902.34 1.504.101.00 228 2018 0.95196 $ 1,050.82 $ 5.849,10 608 Wells Fargo Corporate Note _ 2 2016 1.000.000.00 1.001.680.00 1,008,509.00 137.50 1 222018 1.56% $ (137.50) $ 6,387.95 571 FHLMC Coupon Note 4 292016 1.000.000.00 1,008.050.00 1.014.860.00 12 172018 1.04% $ 1.800.00 $ 1.774.34 900 FFCB Coupon Note 4.292016 1.000.000.00 1.001.870.00 1,008.860.00 1.224.44 3212019 1.09% $ {1,224.44) $ 1,860.62 994 Subtotal $ 48,167.113.05 $ 48,238,018.91 $ 1,361.94 $ 806,073.45 $ 382,231.48 BNY MM 233,030.26 233,030.26 Purchased Interest 1.361.94 1,361.94 LAIF N/A 1231.14 4.186,613.48 4.186.613.48 17,832.65 S52,588,118.73 S52,659,024.59 $ 806,073.45 $ 400.064.13 Bank of the West Matured Assets SO (Mississippi Power) Coupon Note 12 18 12_ 500,000.00 526.020.00 7 10 2015 0.96% $ 41.843.06 $ 5,719.63 Treasury Note 08 16 11 1,000.000.00 1,042.812.50 7 31 2015 0.65% $ 69.239.13 $ 567.83 FHLMC Callable Note 10 30 14 2,500.000.00 2.500,000.00 7'302015 0.75% $ 45,312.50 $ 1.541.10 FHLB Callable Note 02 20 15 1.250.000.00 1,248.750.00 8'20 2015 0.70% $ 6,250.00 $ 1,225.50 FHLB Callable Note 8.'26 2014 1.000.000.00 1,000.500.00 826 2015 0.52% $ 5,700.00 5 812.05 FHLB Callable Note 3,42015 1,000,000.00 1,000,500.00 8'252015 0.94% $ 10,237.50 $ 1,450.04 GE Corporate Note 9/172013 2.000,000.00 2.133.600.00 9-21 2015 1.01% $ 175.972.22 $ 4,789.90 FHLMC Callable Note 11 28 2014 2.000,000.00 1.995.000.00 925 2015 1.37% $ 40,950.00 $ 7,642.44 FHLB Callable Note 4 2_722015 2,000,000.00 2,001,880.00 10:27.2015 0.89% $ 21.600.00 $ 5,319.68 FHLMC Callable Note 4292015 I.500.000.00 1.499.250.00 10292015 1.50% $ 19.500.00 $ 6.960.29 Berk Hath Coupon Note 01 2612 1.250.000.00 1,315,137.50 12/15/2015 1.08% $ 119,012.15 $ 6,384.05 FHLMC Callable Note 04 27 15 1.500,000.00 1.500.945.00 4/27/2016 0.81% $ 13,125.00 $ 10,079.83 FHLB Callable Note 042915 500,000.00 500,000.00 4/29/2016 1.22% $ 6,100.00 $ 5.080.55 Total Investments "Matured" Maturity Profile 0-1 year 1-2 years 2-3 years 3-5 years p 816.263,450.00 $ 1,380,915.01 $ 458.137.02 Amount $20.532.171.00 $23,291.247.73 $8,764,700.00 $0.00 $52.588, 118.73 Market to Cost Position Report Amortized InSt*ution ost BNY Assets $48,167,113.05 BNY MM 233.030.26 Purchased Interest 1.361.94 LAIF 4,186.613.48 Totals: $52,588,118.73 Page 5