04 Staff Report - Treasurer's Report for August 2004
DATE: TO: FROM: SUBJECT: MEETING DATE: 10/18/04 ITEMNO.y COUNCIL AGENDA REPORT October 13., 2004 MAYOR AND TOWN COUNCIL V' LINDA LUBECK, TOWN TREASURERJ7 TREASURER'S REPORTS FOR AUGUST,
2004 RECOMMENDATION: Accept reports as attached. DISCUSSION: Attached for your review and acceptance is the Treasurer's report for August, 2004. As had been anticipated, the Fed raised
the funds rate a quarter point each in July and again in August. With each raise, the prime rate also went up an equal amount. Overall, the Town's rate ofreturn decreased slightly during
the month ofAugust, due to the maturing of two older investments. These two investments, totaling $3.26 million were replaced with four investments totaling $3.97 million. The rates
of return range from 2.1% to 3.0%, depending on the length of time the investment will be held. . The SEI portfolio continues to outperform LAIF, even after adjusting for fees. SEI has
also been reinvesting funds from maturing assets in assets at discounts with good yields. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required:
FISCAL IMPACT: None Attachments: Treasurer's reports dated October 13,2004. PREPARED BY: Linda L. Lubeck, Town Treasurer Reviewed by: own Manager __Assistant Town Manager Town Attorney
____Community Development Revised: 10/13/04 8:46 pm 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 August 31,2004 Submitted October 13, 2004 by Linda L. Lubeck Meeting date:
October 18, 2004 Item No:
Town of Los Gatos Summary Investment Information August 31,2004 Weighted Average Portfolio Yield: 2.31% Weighted Average Maturity (days) 483 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 $50,468,132 2.31% 1.67% 1.61% 1.82% 2.49% 3.52%
4.50% Last Month $50,583,031 2.47% 1.60% 1.45% 1.77% 2.80% 3.66% 4.25% One year ago $47,436,153 2.72% 1.63% 1.00% 1.06% 2.04% 3.30% 4.00% Most recent auctions of Freddie Mac or Fannie
Mae Reference Notes: 2 yr. Fannie Mae (06/16/04) 3.13% 3 yr. Fannie Mae (08/18/04) 3.01% 2 -3 years 20% Portfolio Maturity Profile 3 -5 years 9% ••••.•.•• »...................
49% Compliance: The Town's investments are in compliance with the Town's investment policy dated June 24, 2002 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.
Town of Los Gatos Portfolio Allocation & Treasuer's Fund Balances August 31,2004 Fund Balances -Beginning ofMonthlPeriod Receipts Disbursements Fund Balances -End ofMonthlPeriod Portfolio
Allocation: SEICash US Govt Agencies Local Agency Investment Fund Subtotal-Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Month $50,583,031.06 2,150,502.98 (2,265,401.70)
$50,468,132.34 60,256.90 34,878,071.41 14,142.375.83 49,080,704.14 1.387,428.20 $50,468,132.34 YTD $52,146,172.75 3,993,703.82 (5,671,744.23) $50,468,132.34 $54,000,000 $53,000,000 $52,000,000
$51,000,000 $50,000,000 $49,000,000 $48,000,000 $47,000,000 $46,000,000 $45,000,000 $44,000,000 Portfolio Investment Allocation SEI Cash 0.1% Local Agenc;y Investment Fund 28.8% Treasurer's
Fund Balances
Town of Los Gatos Non-Treasury Restricted Fund Balances August 31, 2004 These accounts are not part of the Treasurer's Amd 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 ofthe 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: Interest accrued at beginning of period Interest earned on investments Town of Los Gatos
Statement of Interest Earned August 31,2004 Current Fiscal Mmllh Year to Date 179,073.19 272,933.24 58,617.80 58,617.80 (99,570.35) (92,466.06) $138,120.64 $239,084.98 Page 4
SEI Investments Account Market to Cost Position Report August 31,2004 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost
Date Elapsed Maturity Invested Maturity Earned Received Accrued FFCB Coupon Note 06/27/03 550,000.00 09/27/04 431 27 458 1.000% 6,494.52 4,125.00 2,369.52 FHLB Coupon Note 06/30/03 514,715.00
11/15/04 428 76 504 1.208% 7,290.96 14,765.62 (7,474.66) FHLMC Coupon Note 06/25/03 556,316.41 01/15/05 . 433 137 570 1.130% 7,457.54 10,885.46 (3,427.92) FHLMC Coupon Note 06/27/03
660,697.66 02/15/05 431 168 599 1.359% 10,602.46 27,887.10 (17,284.64) FHLB Coupon Note 06/26/03 665,362.50 04/15/05 432 227 659 1.064% 8,378.97 8,609.79 (230.82) FHLB Coupon Note 06/23/03
552,634.50 05/13/05 435 255 690 1.220% 8,035.15 7,356.25 678.90 FHLMC Coupon Note 06/30/03 663,493.36 06/15/05 428 288 716 1.482% 11,530.17 25,659.37 (14,129.20) FHLB Coupon Note 06/24/03
672,743.50 08/15/05 434 349 783 1.335% 10,678.93 22,262.50 (11,583.57) FNMA Coupon Note Note 08/24/04 199,360.00 09/15/05 7 380 387 2.178% 83.27 83.27 FHLB Coupon Note 06/24/03 683,345.00
11/15/05 434 441 875 1.432%. 11,635.36 21,009.90 (9,374.54) FHLMC Coupon Note 06/30/03 651,562.50 01/15/06 428 502 930 1.771% 13,530.86 32,812.50 (19,281.64) FHLMC Coupon Note 08/24/04
198,460.00 02/15/06 7 533 540 2.402% 91.42 91.42 FFCB Coupon Note 06/25/03 666,809.00 03/15/06 433 561 994 1.523% 12,047.48 11,736.11 311.37 FHLMC Coupon Note 06/25/03 664,117.19 04/15/06
433 592 1025 1.576% 12,416.41 12,435.76 (19.35) FNMA Coupon Note 06/27/03 504,090.00 04/28/06 431 605 1036 2.315% 13,779.82 10,973.96 2,805.86 FHLB Coupon Note 06/24/03 658,677.50 05/15/06
434 622 1056 1.625% 12,726.91 12,316.15 410.76 FHLMC Coupon Note 06/27/03 500,930.00 06/02/06 431 640 1071 2.076% 12,279.73 4,628.47 7,651.26 FHLMC Coupon Note 06/30/03 387,296.88 07/15/06
428 683 1111 1.872% 8,501.60 20,052.08 (11,550.48) FNMA Coupon Note 06/10/04 297,213.00 08/11106 82 710 792 3.177% 2,121.32 1,397.92 723.40 FHLB Coupon Note 06/30/03 400,000.00 09/29/06
428 759 1187 2.200% 10,318.90 8,080.00 2,238.90 FHLB Coupon Note 06/24/03 688,076.80 11/15/06 434 806 1240 1.825% 14,931.27 23,540.00 (8,608.73) FFCB Coupon Note 06/25/03 660,954.00
12/19/06 433 840 1273 1.844% 14,458.63 28,762.50 (14,303.87) FHLB Coupon Note 06/30/03 400,000.00 12/29/06 428 850 1278 2.225% 10,436.16 8,900.00 1,536.16 FHLMC Coupon Note 06/25/03
662,652.00 03/15/07 433 926 1359 1.946% 15,297.60 21,125.00 (5,827.40) FNMA Coupon Note 06/30/03 333,597.66 04115/07 428 957 1385 2.150% 8,410.32 12,468.75 (4,058.43) FHLMCMTN Coupon
Note 06/27/03 402,556.00 OS/29/07 431 1001 1432 2.808% 13,347.74 11,033.33 2,314.41 FNMA 06/30/03 375,219.60 07/15/07 428 1048 1476 2.359% 10,379.21 15,494.79 (5,115.58)
FNMA Coupon Note 015110/04 296,331.00 10/15/07 82 1140 1222 3.863% 2,571.71 2,571.71 FHLB Coupon Note 06/24/03 672,825.60 11/15/07 434 1171 1605 2.257% 18,056.39 19,973.33 (1,916.94)
FNMA Coupon Note 06/24/03 299,475.00 12/24/07 434 1210 1644 2.528% 9,001.91 7,500.00 1,501.91 FNMA Coupon Note 06/27/03 649,785.94 01/15/08 431 1232 1663 2.492% 19,120.65 21,498.50 (2,377.85)
FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 432 1292 1724 2.294% . 17,848.90 12,761.08 5,087.82 FHLB Coupon Note 06/30/03 286,162.50 04/15/08 428 1323 1751 2.633% 8,835.16 11,637.50
(2,802.34) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 432 1351 1783 2.507% 19,635.80 30,340.86 (10,705.06) FHLMCMTN Coupon Note 06/30/03 228,298.00 06/13/08 428 1382 1810 2.894% 7,747.32
6,026.32 1,721.00 FHLMC Coupon Note 06/24/03 500,000.00 06/18/08 434 1387 1821 2.750% 16,349.32 13,750.00 2,599.32 18,422,918.49 693 1.865% 386,429.89 501,805.90 (115,376.01) Cash 60,256.90
7,400.30 7,027.42 372.88 Purchased Int .3,354.17 393,830.19 508,833.32 (115,003.13) 18,486,529.56