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03 Staff Report - Treasurer's Report December 2004tpW N 0 'OS !ps GA DATE: TO: FROM: SUBJECT: COUNCIL AGENDA REPORT January 20, 2005 MAYOR AND TOWN COUNCIL LINDA LUBECK, TOWN TREASURER MEETING DATE: 02/07/05 ITEM NO. 3 TREASURER'S REPORTS FOR DECEMBER, 2004 RECOMMENDATION: Accept reports as attached. DISCUSSION: Attached for your review and acceptance i s the Treasurer's report for December, 2004. Overall, the Town's rate of return increased slightly as the prime continues to increase. Prime is now at 5.25%. It is expected to go up once again when the Fed meets in early February. We should be able to see an increase in the Town's overall performance as investments mature in March, 2005 and by investing funds in February, 2005. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: None Attachments: Treasurer's report dated January 20, 2005 PREPARED BY: Linda L. Lubeck, Town Treasurer Reviewed by: Mown Manager VS~)Assistant Town Manager Town Attorney F Clerk 4 ,Finance Community Development Revised: 2/2/05 7:00 pm Distribution: Town Council; Town Manager; Finance Director Reformatted: 5/30/02 Meeting date: February 7, 2005 Item No: Town of Los Gatos Treasurer's Report for the month ended December 31, 2004 Submitted January 20, 2005 by Linda L. Lubeck Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summ ary Investment Information December 31, 2004 Weighted Average Portfolio Yield: 2.49% Weighted Average Maturity (days) 430 This Month Last Month One year ago Portfolio Balance $50,575,753 $47,910,984 $48,117,367 Benchmarks/ References: Town's Average Yield 2.49% 2.46% 2.65% LAIF Yield for month 2.00% 1.89% 1.55% 3 mo. Treasury 2.27% 2.24% 0.90% 6 mo. Treasury 2.63% 2.46% 1.02%0 2 yr. Treasury 3.12% 2.95% 1.95% 5 yr. Treasury (most recent) 3.55% 3.55% 3.38% Prime rate 5.25% 5.00% 4.00% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 2 yr. Freddie Mac (10/13/04) 2.78% 3 yr. Fannie Mae (10/22/04) 3.13% 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. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances December 31, 2004 Fund Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Portfolio Allocation- SEI Cash US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Myth YTD $47,910,983.82 $52,146,172.75 4,804,975.73 15,222,353.55 (2,140,206.78) (16,792.773.53) $50,575,752.77 $50,575,752.77 218,128.37 34,901,186.00 11-701.208.05 46,820,522.42 3.755.230.35 $50,575,752.77 US Govt Agencies 74.5% Treasurer's Fund Balances $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 - - - , , , M 7 O O d- d- <Y O O O N m N R Q _ 7 7 7 d- V- V 7 V O ~ O O O O O O O '3 7 'V U O ~ 4 rn O z Q page 2 Town of Los Gatos Non-Treasury Restricted Fund Balances December 31, 2004 Previous l D i I Ending i hd l Non-Treasury Funds: ance tS Ba epos nterest W t rawa s Balance Downtown Parking District 12/20/02 235,350.90 1,363.07 236,713.97 Note 1 Certificates of Participation Reserve Fund (Lot 4) 255,388.93 265.81 255,654.74 Note 2 Cert. of Participation Lease Payment Fund (Lot 4) 62,685.04 21,082.92 65.24 83,833.20 Note 3 Cert. of Participation 2002 Series A Const. Fund 2,358,238.06 0.08 0.01 2,358,238.13 Note 4 Cert. of Participation 2002 Series A Reserve Fund 722,841.93 35.61 10.70 722,866.84 Note 4 Cert. Of Participation 2002 Series A Interest Fund 0.00 0.00 Cert. Of Participation 2002 Series A COI Fund 0.00 0.00 0.00 0.00 Note 4 Total Restricted Funds: $3,634,504.86 $21,082.92 $1,729.81 $10.71 $3,657,306.88 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 December 31, 2004 Current Fiscal Month Year to Date Interest received from Investments 151,336.75 684,179.49 Add: Interest accrued at end of period (see page 5) (7,495.39) (71495.39) Less: Interest accrued at beginning of period (60,036.17) (92,466.06) Interest earned on investments $83,805.19 $584,218.04 Page 4 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report December 31, 2004 Inactive Deposits by Institution Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Dom. Institution Security Dak Elm D= Elapsed Malutily Invested Maturi ty Famed Received Accred 923 FNMA Coupon Note 02/25/02 1,998,520.00 03/15/05 1040 74 1114 3.90% 222,082.11 198,055.56 24,026.55 924 FHLMC Coupon Note 05/16/02 1,999,340.00 06/15/05 960 166 1126 4.26% 224,013.72 219,347.22 4,666.50 931 FMCDN Coupon Note 08/18/04 980,715.00 07/26/05 135 207 342 2.09% 7,575.61 7,575.61 927 FNMA Coupon Note 08/26/03 1,071,900.00 11/14/05 493 318 811 2.37% 34,309.89 21,088.80 13,221.09 932 FHLB Coupon Note 08/18/04 498,300.00 02/03/06 135 399 534 2.49% 4,586.99 2,343.75 2,243.24 928 FNMA Coupon Note 08/26103 895,320.00 04/28/06 493 483 976 2.83% 34,193.98 27,694.30 6,499.68 933 FHLB Coupon Note 08/18/04 996,420.00 05/15/06 135 500 635 2.46% 9,066.92 5,437.50 3,629.42 920 FNMA Coupon Note 06/22/01 2,001,740.00 06/15/06 1288 531 1819 5.23% 369,445.00 365,484.30 3,960.70 934 FNMA Coupon Note 08/18/04 1,491,000.00 01/12/07 135 742 877 3.06% 16,877.40 16,877.40 929 FNMA Coupon Note 02/09/04 2,000,000.00 05/09/07 326 859 1185 3.00% 53,589.04 30,000.00 23,589.04 930 FHLMC Coupon Note 02/24/04 2,505,250.00 08/24/07 311 966 1277 2.79% 59,643.83 40,250.00 19,393.83 Purch int - Union acct. 4,200.00 SEI Cash 218,128.37 8,787.91 8,484.57 30134 SEI Investments 18,454,921.98 Various 628 2.02% 487,552.71 681,102.28 (193,549.57) Purch Int - SEI acct. 3,559.02 LAIF N/A 09/30/04 11,701,208.05 12131/04 92 0 92 2.00% 60,067.77 60,067.77 46,820,522.42 430 2.49% 1,591,792.89 1,599,288.28 (7,495.39) Maturity Profile Amount Percent 0-1 year 23,228,577.86 49.61% 1-2 years 11,069,966.87 23.64% 2-3 years 8,742,575.86 18.67% 3-5 years 3.779.401.83 8.07°/ 46,820,522.42 100.00°/ Market to Cost Position Report Market Amortized Market Unrealized 12MInstitution Security Price Cost Value* Crain (Loss) 923 FNMA Coupon Note 100.438 1,998,520.00 2,008,760.00 10,240.00 924 FHLMC Coupon Note 100.938 1,999,340.00 2,018,760.00 19,420.00 931 FMCDN Coupon Note 98.310 980,715.00 983,100.00 2,385.00 927 FNMA Coupon Note 99.219 1,071,900.00 1,071,565.20 (334.80) 932 FHLB Coupon Note 99.188 498,300.00 495,940.00 (2,360.00) 928 FNMA Coupon Note 99.406 895,320.00 894,654.00 (666.00) 933 FHLB Coupon Note 98.875 996,420.00 988,750.00 (7,670.00) 920 FNMA Coupon Note 103.219 2,001,740.00 2,064,380.00 62,640.00 934 FNMA Coupon Note 99.063 1,491,000.00 1,485,945.00 (5,055.00) 929 FNMA Coupon Note 99.188 2,000,000.00 1,983,760.00 (16,240.00) 930 FHLMC Coupon Note 99.492 2,505,250.00 2,487,300.00 (17,950.00) 0.00 Subtotal 16,438,505.00 16,482,914.20 44,409.20 Porch Int - Union acct. 4,200.00 4,200.00 0.00 SEI 18,454,921.98 17,834,645.35 (620,276.63) SEI Cash 218,128.37 218,128.37 0.00 N/A LAIF N/A 11,701,208.05 11,701,208.05 0.00 Purchased Int. 3,559.02 3,559.02 0.00 Totals: 46,820,522.42 46,244,654.99 (575,867.43) * Source: Treasury and Agency Obligatio ns - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. page 5 SEI Investments Account Market to Cost Position Report December 31, 2004 Deposit Amortized Maturity Days Days to Days t Yield o Interest Interest Interest D= Institution Security IRate f= D= Fansed ~rl[X Invested ' ~ * ,,aturi EffiIled Received Accrued FNMA Z Coupon 11/23/04 149,576.00 01/03/05 38 3 41 2.524% 393.04 0.00 393.04 FHLMC Coupon Note 06/25/03 556,316.41 01115105 555 15 570 1.130% 9,558.74 10,885.46 (1,326.72) FHLMC Coupon Note 06/27/03 660,697.66 02/15/05 553 46 599 1.359% 13,603.62 27,887.10 (14,283.48) FHLMC Z Coupon 11/08/04 49,634.74 03/07/05 53 66 119 2.228% 160.58 160.58 FHLB Coupon Note 06/26/03 665,362.50 04/15/05 554 105 659 1.064% 10,745.26 13,972.29 (3,227.03) FHLB Coupon Note 06/23/03 552,634.50 05/13/05 557 133 690 1.220% 10,288.69 11,481.25 (1,192.56) FNMA Coupon Note 11/09/04 199,375.00 05/27/05 52 147 199 2.376% 674.88 674.88 FHLMC Coupon Note 06/30/03 663,493.36 06115105 550 166 716 1.482% 14,816.81 39,046.87 (24,230.06) FHLB Coupon Note 06/24/03 672,743.50 08/15/05 556 227 783 1.335% 13,680.84 22,262.50 (8,581.66) FHLMC Coupon Note 11/09/04 198,468.75 08/15/05 52 227 279 2.508% 709.14 709.14 FNMA Coupon Note 08/24/04 199,360.00 09/15/05 129 258 387 2.178% 1,534.59 218.75 1,315.84 FHLB Coupon Note 06/24/03 683,345.00 11115105 556 319 875 1.432% 14,906.13 32,791.15 (17,885.02) FHLMC Coupon Note 06/30/03 651,562.50 01115106 550 - 380 930 1.771% 17,387.79 32,812.50 (15,424.71) FHLMC Coupon Note 08/24/04 198,460.00 02/15/06 129 411 540 2.402% 1,684.78 1,684.78 FFCB Coupon Note 06/25/03 666,809.00 03/15/06 555 439 994 1.523% 15,441.93 19,861.11 (4,419.18) FHLMC Coupon Note 06/25/03 664,117.19 04/15/06 555 470 1025 1.576% 15,914.80 20,154.51 (4,239.71) FNMA Coupon Note 06/27/03 504,090.00 04/28/06 553 483 1036 2.315% .17,680.37 17,536.46 143.91 FHLB Coupon Note 06/24/03 658,677.50 05/15/06 556 500 1056 1.625% 16,304.52 19,222.40 (2,917.88) FHLMC Coupon Note 06/27/03 500,930.00 06/02/06 553 518 1071 2.076% 15,755.66 15,378.47 377.19 FHLMC Coupon Note 06/30/03 387,296.88 07/15/06 550 561 1111 1.872% 10,924.96 20,052.08 (9,127.12) FNMA Coupon Note 06110/04 297,213.00 08/11/06 204 588 792 3.177% 5,277.43 1,397.92 3,879.51 FHLB Coupon Note 06/30/03 400,000.00 09/29/06 550 637 1187 2.200% 13,260.27 12,120.00 1,140.27 FHLB Coupon Note 06/24/03 688,076.80 11/15/06 556 684 1240 1.825% 19,128.54 36,740.00 (17,611.46) FFCB Coupon Note 06/25/03 660,954.00. 12/19/06 555 718 1273 1.844% 18,532.43 43,387.50 (24,855.07) FHLB Coupon Note 06/30/03 400,000.00 12/29/06 550 728 1278 2225% 13,410.96 13,350.00 60.96 FHLMC Coupon Note 06/25/03 662,652.00 03/15/07 555 804 1359 1.946% 19,607.78 35,750.00 (16,14222) FNMA Coupon Note 06/30/03 333,597.66 04/15/07 550 835 1385 2.150% 10,807.65 20,343.75 (9,536.10) FHLMC MTN Coupon Note 06/27/03 402,556.00 05/29/07 553 879 1432 2.808% 17,125.99 17,033.33 92.66 FNMA Coupon Note 06/30/03 375,219.60 07/15/07 550 926 1476 2.359% 13,337.77 15,494.79 (2,157.02) FHLB Coupon Note 06/24/03 672,825.60 11/15/07 556 1049 1605 2.257% 23,132.15 31,173.33 (8,041.18) FNMA Coupon Note 06/24/03 299,475.00 12/24/07 556 1088 1644 2.528% 11,532.40 11,250.00 282.40 FNMA Coupon Note 06/27/03 649,785.94 01115108 553 1110 1663 2.492% 24,533.00 21,498.50 3,034.50 FHLMC Coupon Note 09/30/04 198,630.00 02/25/08 92 1151 1243 3.462% 1,73327 1,733.27 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 554 1170 1724 2.294% 22,889.56 21,629.83 1,259.73 FHLB Coupon Note 06/30/03 286,162.50 04/15/08 550 1201 1751 2.633% 11,353.60 18,987.50 (7,633.90) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 554 1229 1783 2.507% 25,181.09 47,569.11 (22,388.02) FHLMCMTN Coupon Note 06/30/03 228,298.00 06/13/08 550 1260 1810 2.894% 9,955.67 9,188.82 766.85 FHLMC Coupon Note 06/24/03 500,000.00 06/18/08 556 1265 1821 2.750% 20,945.21 20,625.00 32021 FNMA Coupon Note 09/30/04 198,597.00 08115108 92 1323 1415 3.442% 1,722.97 1,722.97 FNMA Coupon Note 11/16/04 199,216.00 09/15/08 45 1354 1399 3.866% 949.52 949.52 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 45 1417 1462 3.936% 968.35 21.53 946.82 18,454,921.98 628 2.024%. 487,552.71 681,10228 (193,549.57) Cash 218,128.37 8,787.91 8,484.57 303.34 Purchased hit 3,559.02 496,340.62 689,608.38 (193,267.76) 18,676,609.37 page 6