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01 Staff Report - Fiscal Year Quarter 2006-07MEETING DATE: 11/06/06 tpW N 0 ITEM NO. COUNCIL AGENDA REPORT !ps ~ p.~pS DATE: November 1, 2006 TO: MAYOR AND TOWN COUNCIL FROM: LINDA SPEICHER, TOWN TREASURER SUBJECT: TREASURER'S REPORTS FOR FIRST FISCAL QUARTER, 2006-07 RECOMMENDATION: Accept reports as attached. DISCUSSION: Attached for your review and acceptance are the Treasurer's reports for the first fiscal quarter (July through September) 2006-07. Prime remained steady during the period, with no foreseeable raises by the Federal Reserve on the horizon. Interest rates continued to rise slightly, although they dropped from August to September. Overall, the Town's funds have decreased during the quarter, due to normal spending patterns. Funds will increase again with the influx of property taxes in the next quarter. The portfolio has been somewhat diversified over the last quarter, with the help and advice of MB IA. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: None Attachments: Treasurer's reports dated November 1, 2006. PREPARED BY: Linda L. Speicher, Town Treasurer Reviewed by: own Manager JLbAssistant Town Manager _ Clerk , =,,,.Finance Community Development Distribution: Town Council; Town Manager; Finance Director Town Attorney Revised: 1 1 / 1 /06 9:16 pm Reformatted: 5/30/02 M Meeting date: November 6, 2006 Item No: Town of Los Gatos Treasurer's Report for the month ended September 30, 2006 Distribution: Submitted November 1, 2006 by Linda L. Speicher Town Clerk Town Manager Town Council I Town of Los Gatos Summary Investment Information September 30, 2006 Weighted Average Portfolio Yield: 4.35% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $60,585,832 $64,679,337 $55,482,768 Benchmarks/ References: Town's Average Yield 4.35% LAIF Yield for month 5.02% 3 mo. Treasury 4.90% 6 mo. Treasury 5.00% 2 yr. Treasury 4.66% 5 yr. Treasury (most recent) 4.57% Prime rate 8.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (07/18/06) 5.43% 2 yr. Freddie Mac (09/15/06) 5.01% 4.30% 3.11% 4.95% 3.20% 5.09% 3.52% 5.17% 3.87% 4.92% 4.10% 4.74% 3.90% 8.25% 6.75% 368 Portfolio Maturity Profile I - 2 year; 22% - I year 58% 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 1 W 3 - 5 years 2 - 3 years 6% Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances September 30, 2006 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 $64,679,337.12 $66,482,899.82 1,534,397.16 6,473,663.88 (5,627,902.44) (12,370,731.86) $60,585,831.84 $60,585,831.84 573,792.44 38,628,385.27 21.085,991.15 60,288,168.86 297,662.98 $60,585,831.84 Local Agency Investment F 35.0% JS Govt Agencies 64.1% Treasurer's Fund Balances 568,000.( no 567,000.000 $66,000J,(- $65,000.000 $64,000,000 $63,000,000 $62,000.000 $61.000.000 $%000,000 $59,000MO $58,000.000 $57,000,000 $56.000,000 ' $55.000.000 $54,004000 $53.000.000 $52000.000 c o o c c o ~ o o c o s 'J z p !u 4 4 f page 2 Portfolio Investment Allocation Union MM 1.0% Town of Los Gatos Non-Treasury Restricted Fund Balances September 30, 2006 Previous Ending Balance Deposits Interest Withdrawals Balance Non-Treasurv 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 COI Fund Total Restricted Funds 247,199.64 547.07 247. 746.71 Note 1 255,161.47 17013.77 256, 175.24 Note 2 30.480.08 18.753.99 70.92 49. 304.99 Note 3 1.294.419.80 306.33 24.44 1.294. 701.69 Note 4 768.412.24 345.50 27.63 768. 730.11 Note 4 321.27 1.16 322.43 0.00 0.00 0.00 0.00 Note 4 527595,99450 $18,753.99 52.284.75 552.07 82.616.981.17 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 redetnpboo 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 clue 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. Paee 3 Town of Los Gatos Statement of Interest Earned September 30, 2006 Current Month Interest received from Investments 99,441.97 Add: Interest accrued at end of period (see page 5) 369,699.21 Less: Interest accrued at beginning of period (255,186.47) Interest earned on investments $213,954.71 Fiscal Year to Date 568,239.05 369,699.21 (268,699.72) $669,238.54 Paae 4 Town of Los Gatos Inac tive Deposits by Institution Mar ket to Cost Position Report September 30, 2006 Inactive Deposits by Institution Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Deg Institution Security Date Cost Date Elapsed Maturitv Invested Maturity Earned Received Accrued FNMA Discount Note 06/02/06 1,275,395.33 10/16/06 120 16 136 5.178% 21,711.77 21,711.77 939 FFCB Coupon Note 03/16/05 498,560.00 12/11/06 563 72 635 3.800% 29,222.45 22,404.51 6,81%94 934 FNMA Coupon Note 08/18/04 1,491.000.00 01/12/07 773 104 877 3.0601/, 96,638.74 79,800.00 16,838.74 940 FHLB Coupon Note 03/16/05 543,228.45 02/09/07 563 132 695 3.930% 32929.91 21,402.65 11,527.26 929 FNMA Coupon Note 02/09/04 2,000,000.00 05/09/07 964 221 1185 3.000% 158,465.75 150,000.00 8,465.75 942 FHLB Coupon Note 05/16/05 999.000110 05/16/07 502 228 730 4.043% 55,549.49 39,900.00 15,649.49 943 FNMA Coupon Note 07/01/05 ?49.032.50 05/17/07 456 229 685 3.815% 35,69992 10,625.00 25,074.92 930 FHLMC Coupon Note 02/24/04 2505,250.00 08/24/07 949 328 1277 3.1561/,, 205.570.79 201.250.00 4,320.79 946 FHLMC Discount Note 08/15/05 1,500,000.00 11/15/07 411 411 822 4.496% 75,939.29 67,500.00 8,439.29 944 FNMA Coupon Note 07/01/05 984,074.54 12/15/07 456 441 897 3.807% 46,803.99 29,861.11 16,942.88 947 FHLMC Discount Note 08/15/05 999.700.00 02/15/08 411 503 914 4.513% 50,80237 45,000.00 5,80237 USTreasury Note 05/12/06 1,986,562.50 03/31/08 141 548 689 5.000% 38,370.59 38,370.59 945 FHLB Coupon Note 07/01/05 755,975.25 04/18/08 456 566 1022 3.803% 35.91748 24,664.06 11,253.42 USTreasury Note 06/15/06 1.990.31150 05/31/08 107 609 716 5.135% 29,960.75 29,960.75 USTreasury Note 07/19/06 738.281.25 02/15/09 73 869 942 5.157% 7,614.63 2,517.27 5,097.36 FHLB Coupon Note 05/12/06 1,498,035.00 03/13/09 141 895 1036 5.298/ 30,659.15 26,468.75 4,19040 USTreasury Note 05/15/06 1.992.343.75 05/15/09 138 958 1096 5.014% 37,768.94 37,768.94 FHLB Coupon Note 06/15/06 1,493,400.00 06/12/09 107 986 1093 5.226°i 22,878.97 22,878.97 FFCB Coupon Note 07/19/06 723.562.50 07/17/09 73 1021 1094 5.408 % 7,826.05 7,826.05 FHLB Coupon Note 08/22/06 1,507,665.00 06/11/10 39 1350 1389 4.9571/, 7,985.38 7,985.38 FNMA Discount Note 09/29/06 1.516.485.00 04/15/11 1 1658 1659 4.874% 20250 0.00 202.50 FHLMC Coupon Note 02/22/05 197,629.00 10/15/06 585 15 600 3.507% 11.108.35 6,309.72 4,798.63 FHLB Coupon Note 06/24/03 688,076.80 11/15/06 1194 46 1240 1.825°I 41,078.18 76,340.00 (35,261.82) FFCB Coupon Note 06/25/03 660,954.00 12/19/06 1193 80 1273 1.844% 39,83637 87,262.50 (47,426.13) FHLB Coupon Note 06/30/03 400,000.00 12/29/06 1188 90 1278 2.225% 28,967.67 26,700.00 267.67 FNMA Coupon Note 02/22/05 195,358.60 02/15/07 585 138 723 3.363% 10,529.86 7,032.64 3,49722 FHLMC Coupon Note 06/25/03 662,652.00 03/15/07 1193 166 1359 1.9461/, 42,14%90 94,250.00 (52,102.10) FNMA Coupon Note 06/30/03 333,597.66 04/15/07 1188 197 1385 2.150% 23,344.52 43,968.75 (20,624.23) FHLMC MTN Coupon Note 06/27/03 402,556.00 05/29/07 1191 241 1432 2.808% 36,884.36 35,033.33 1,851.03 FNMA Coupon Note 06/30/03 375,219.60 07/15/07 1188 288 1476 2.359% 28,809.59 45.244.79 (16,435.20) FHLB Coupon Note 06/24/03 671825.60 11/15/07 1194 411 1605 2.257% 49,675.88 64,773.33 (15,097.45) FNMA Coupon Note 06/24/03 299.475.00 12/24/07 1194 450 1644 2.528% 24.765.61 22,500.00 2,265.61 FNMA Coupon Note 06/27/03 649.785.94 01115108 1191 472 1663 2.492% 52,836.89 61448.50 (9,611.61) FHLMC Coupon Note 09/30/04 198,630.00 02/25/08 730 513 1243 3.4621/, 13,753.14 12,368.06 1,385.08 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 1192 532 1724 2.294% 49,249.74 57,104.83 (7,855.09) FHLB Coupon Note 06/30/03 286,16250 04/15/08 1188 563 1751 2.633% 24,523.77 41,03%50 (16,513.73) FHLB Coupon Note 06/26/03 661,76430 05/13/08 1192 591 1783 2.507% 54.180.26 99,253.86 (45,073.60) FHLMC MTN Coupon Note 06/30/03 228.298.00 06/13/08 1188 622 1810 2.894% 21,504.25 18,676.32 2,827.93 FHLMC Coupon Note 06/24/03 500,000.00 06/18/08 1194 627 1821 2.750% 44,979.45 41,250.00 3,729.45 FNMA Coupon Note 09/30/04 198,597.00 08/15/08 730 685 1415 3.442% 13,671.42 12,187.50 1,483.92 FNMA Coupon Note 11/16/04 199,216.00 09/15/08 683 716 1399 3.866% 14,411.66 13,729.17 682.49 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 619 716 1335 3.974% 16,724.50 15,520.83 1,203.67 FNMA Coupon Note 11/16/04 199552.00 11/17/08 683 779 1462 3.936% 14,69735 11,646.53 3,050.82 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 450 835 1285 4.313% 15,760.93 12,43229 3,328.64 FNMA Coupon Note 01/21/05 242,400.00 03/16/09 617 898 1515 3.930% 16,10340 12,912.33 3,191.07 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 470 1034 1504 4.359% 16,849.99 14,692.71 2,15728 FHLMC Coupon Note 08/01/05 298332,00 07/30/09 425 1034 1459 4.5271/, 15,725.57 13,088.54 2,637.03 FHLMC Coupon Note 06/14/05 298,683.00 09/01/09 473 1067 1540 4.2371/, 16,399.75 15,021.87 1,377.88 FHLMC Coupon Note 01/21/05 149,686.50 09/01/09 617 1067 1684 4.180% 10.576.73 9,968.75 607.98 FHLMC Coupon Note 06/14/05 299.331.00 01/25/10 473 1213 1686 4.431% 17.187.86 14,619.79 2,568.07 Subtotal 38.548,800.66 Union MM 573,792.44 30 30 4.801/, 2,263.73 2,263.73 Purchased Inter est 79.584.61 LAIF N/A 06/30/06 21,085,991.15 09/30/06 92 0 92 5.02% 281.399.44 281.399.44 60,288,168.86 368 4.35/ 2.078.467.00 1,708.767.79 369,699.21 Maturity Profile Amount Percent 0-1 year 35,716,878.14 59241/, 1-2 years 13.016,932.72 21.591/, 2-3 years 8,230,877.00 1 3.65% 3-5 years 3323.481.00 5.51 °Ic 60288.168.86 100.001/1 Market to Cost Pos ition Report Amortized Market Unrealized * Source: T reasury and Agency Obligations - Union Ba nk of Califomi Deg Institution Security cost _ value- Gain (Loss) LAIF balan ces per Loc al Agency Investment Fund mon thly statement. Union Bank As sets 38,548,800.66 37,989,204.70 (559.595.96) Union MM 573.792.44 573,792.44 0.00 Purchased Interest 79.584.61 79.584.61 0.00 LAIF 21.085.991.15 21.085.991.15 0.00 Totals: 60,288,168.86 59,728„572.90 (559,595.96) pa ge 5 Meeting date: November 6, 2006 Item No: Town of Los Gatos Treasurer's Report for the month ended August 31, 2006 Submitted November 1, 2006 by Linda L. Speicher Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summ ary Investment Information August 31, 2006 Weighted Average Portfolio Yield: 4.30% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $64,679,337 $65,643,634 $56,484,060 Benchmarks/ References: Town's Average Yield 4.30% 4.28% 3.07% LAIF Yield for month 4.95% 4.85% 3.08% 3 mo. Treasury 5.09% 5.11% 3.58% 6 mo. Treasury 5.17% 5.17% 3.83% 2 yr. Treasury 4.92% 5.09% 4.01% 5 yr. Treasury (most recent) 4.74% 5.00% 4.22% Prime rate 8.25% 8.25% 6.50% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (07/18/06) 5.43% 2 yr. Fannie Mae (06/13/06) 5.27% Portfolio Maturity Profile 3 - 5 years 2 - 3 years 4% 356 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 1 I44F 'Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances August 31, 2006 Month Fund Balances - Beginning of Month/Period $65,643,634.27 Receipts 2,714,971.40 Disbursements (3,679,268.55) Fund Balances - End of Month/Period 564,679,337.12 Portfolio Allocation: Union MM 540,886.63 US Govt Agencies 38,562,150.13 Local Agency Investment Fund 21,085.991.15 Subtotal - Investments 60,189,027.91 Reconciled Demand Deposit Balances 4.490,309.21 Total Treasurer's Fund $64,679.337.12 YTD $66,482,899.82 4,939,266.72 (6.742.829.42) $64,679,337.12 Local Agency Investment F 35.0% JS Govt Agencies 64.1 $68.000.000 n_ 567,000.000 $66.000.000 565900.000 ; $64.000,000 $63.000.000 S610(- )01) $61.060 uuu 560.900 i,, ~ $59.000.00, $58.001 On, $57.M, 1$56.01 555.00u.", l~ $54.000,J S i 3.000.00, ) $52.000.000 - - c Treasurer's Fund Balances page 2 Portfolio Investment Allocation Union MM 0.9% Town of Los Gatos Non-Treasury Restricted Fund Balances August 31, 2006 Previous Ending Balance Deposits Interest Withdrawals Balance Non-freasurv 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 COI Fund Total Restricted Funds 246. 653. 78 545.86 247.199 .64 Note1 261 728. 22 1.025. 21 8. 591.96 255.161 .47 Note2 193 ,727. 44 47.734.15 755. 99 211. 737.50 30.480 .08 Note3 1.688 302. 73 16.172. 97 110. 055.90 1.294.419 .80 Note4 768 .101. 49 338 .31 27.56 768.412 .24 Note 4 457 .729. 88 347 .98 457. 756.59 321 .27 0. 00 0 .00 0.00 0 .00 Note4 $3.617.243.54 $47.734.15 519.186.32 $1.088.169.51 $2.595.994.50 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 l: This account include redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District Y. 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 Lot4 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 I Town of Los Gatos Statement of Interest Earned August 31, 2006 Current Month Interest received from Investments 170,009.36 Add: Interest accrued at end of period (see page 5) 255,186.47 Less: Interest accrued at beginning of period (201,993.90) Interest earned on investments $223,201.93 Fiscal Year to Date 468,797.08 255,186.47 (26809.72) $455,283.83 Page 4 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report August 31, 2006 Inactive Deposits by Institution Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Dep Institution Securhv Date Cost Date Elapsed Matuntv Invested Maturity Earned Received Accrued FNMA Discount Note 0/12/06 1,078,739.44 09/29/06 111 29 140 5,138% 16,855.47 0.60 ]6.855.47 FNMA Discount Note 06/02/06 1,275,395.33 10/16!06 90 46 136 5.1781 16283.83 16,283.83 939 FFCB Coupon Note 03/16/05 498,560.00 12/11/06 533 102 635 3.8009 27,66530 22,404.51 5,26079 934 FNMA Coupon Note 08/18/04 1,491,000.(X) 01/12/07 743 134 877 3060% 9188&21 79,80O.OO 1308821 940 FHLB Coupon Note 03/16/05 543,228.45 02109/07 533 162 695 3-9301 31.17521 21.402.65 9.772.56 929 FNMA Coupon Note 02/09/04 2.000,000.00 05/09/07 934 251 1185 3.0001, 153.534.25 150.01.4).00 3534.25 942 FHLB Coupon Note 05/16/65 999,000-00 05/16/07 472 258 730 4.043, 52.229.80 39.9(Xl.W) 12329.80 943 FNMA Coupon Note 07/01/05 749,03250 05/17/07 426 259 685 3815 " 3335124 10,625.110 22.726.24 930 FHLMC Coupon Note 02/24/04 2505.250.00 08/24/07 919 358 1,77 3.156' 11, t 072.14 201,250.00 (1177.76) 946 I HLMC Discount Note 08/15/05 1,500,00).00 11/15/07 381 441 822 4.49(, 70, 9627 67,500.00 2,896.27 944 F %IA Coupon Note 07/01/05 984,074.54 12/151)7 426 471 897 3.80 43,724.78 29,861.11 13.863.67 947 FHLMC Discount Note 08/15/05 999,700.00 02115/08 381 533 914 451; 47,094.17 45,00).00 2.094.17 USTreasury Note 05/12/06 1,986.562.50 03/31/08 111 578 689 5.000% 30206.64 30,206.64 945 FHLB Coupon Note 07/01/05 755,975.25 04/18/08 426 596 1022 3, 8()39, 33,574.49 24,664.06 8.890.43 USTreasury Note 06/15/06 2990,31250 05131108 77 639 716 5.135! 2156054 21560.54 USTreasup' Note 07/19/06 738,28125 02/15/09 43 899 942 5.1571 4,485.33 2,51727 1,968.06 FIiCB Coupon Note 05/12/06 1,498,035.00 03/13/09 III 925 1036 5.2989 24,135.93 24,135.93 USTreasury Note 05/15/06 1,992,343.75 05115/09 108 988 1096 5.0149, 29.558.30 29.558.30 1:1 11-B Coupon Note 06/15/06 1,493,400.00 06/12/09 77 1016 1093 5.2269 16.46431 16.464.31 FFCB Coupon Note 07/19/06 723,562.50 07/17/09 43 1051 1094 54081/, 4.609.87 4.609.87 FHLB Coupon Note 08/22/06 1507,665.00 06/11/10 9 1380 1389 4957° 1,842.78 1842 78 FHLB Coupon Note 06/30/03 400,000.00 09/29/06 1158 29 1 187 2.200%. 27,91890 24.240.00 3.678.90 FHLMC Coupon Note 0222/05 197,629.00 10/15/06 555 45 600 35071/, 10,538.69 6,309.72 4.228.97 FFILB Coupon Note 0624/03 688,076.80 11115/06 1164 76 1240 28259 40,046.07 76340.00 (36,293.93) FFCB Coupon Note 0625/03 660,954.00 12/19/06 1 163 110 1273 1.8449 38,834.61 87,262.50 (48,427.89) FHLB Coupon Note 06/30/03 400,(.4X).)0 1229/06 1158 120 1278 2.2259 28,236.16 26.700.00 1.536.16 FNMA Coupon Note 0222/05 195,358.60 021!5/07 555 168 723 33631/, 9,989.86 7,032.64 195722 FHLMC Coupon Note 0625/03 662,652.00 03/15/07 1163 196 1359 29469 41,088.02 79,625.00 (38,536.98) FNMA Coupon Note 06/30/03 333,597.66 04/15/07 1158 227 1385 2.1509 22,755.02 43,968.75 (21,213.73) FHLMC MTN Coupon Note 0627/03 402,556.00 0529/07 1161 271 1432 2,8089 35.955.29 35,033.33 921.96 FNMA Coupon Note 06/30/03 375,219.60 07/15/07 1158 318 1476 2.359% 28,082.07 45,244.79 (17,162.72) FHLB Coupon Note 0624/03 672,825.60 11115/07 1164 441 1605 2.257`,, 48.427.74 64,773.33 (16,345.59) FNMA Coupon Note 0624/03 299,475.0 1224/07 1164 480 1644 2.5289 24.143.36 22.500.(X) 1.643.36 FNMA Coupon Note 06/27/03 649,785.94 01/15/08 1161 502 1663 2.492% 51,505.99 62,448.50 (10.942.51) FHLMC - Coupon Note 09/30/04 198,630.00 0225108 700 543 1243 3.462% 13,18794 12,368.06 819.88 I-FiLMC Coupon Note 0626/03 657,396.09 03/15/08 1162 562 1724 2,294% 48,01023 48,236.08 (225.85) FHLB Coupon Note 06130/03 286,162.50 04/15/08 1158 593 1751 1633% 23,904.48 41,037.50 (17,133.02) FHLB Coupon Note 0626/03 661,764.30 05/13/08 1162 621 1783 25079 52,816.66 99,253.86 (46,43720) FHLMC M'I-N Coupon Note 66/30K)3 228,298.00 06/13/08 1158 652 ISM 2.8941/, 20,961.21 18,676.32 1284.89 FHLMC Coupon Note 06/24/03 500,))0-00 06/18/08 1164 657 1821 2.7509 43,84932 41,250.00 2599.32 FN11A Coupon Note 09/30/04 198,597.00 08/15/08 700 725 1415 3.4429, 13,109.58 12,187.50 922.08 FNMA Coupon Note 11/16/04 199216.00 09/15/08 653 746 1399 3.8669', 13,778.64 9,979.17 3,799.47 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 589 746 1335 3.9749, 15.913.94 10,83333 5.080.61 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 653 809 1462 3.936% 14,051.78 11,646.53 2.405.25 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 420 865 1285 43139, 14,710.20 12,432.29 2,277.91 FNMA Coupon Note 0121/05 242,400.00 03/16/09 587 928 1515 3.930% 15320.41 9,006.08 6.314.33 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 440 1064 1504 43599, 15,774.46 14.69271 1A1.75 FHLMC Coupon Note 08/01/05 298,332.00 07/30/09 395 1064 1459 4.5279 14,61553 13,088.54 1526-99 FHLMC Coupon Note 06/14/05 298,683.00 09/01/09 443 1097 1540 4237% 15,359.60 8,834.37 6.52523 FHLMC Coupon Note 0121/OS 149,68&50 09/01/09 587 1097 1684 4.180% 10.06246 6,875.00 3.187.46 FI-ILMC Coupon Note 06/14/05 299,331.00 0125/10 443 1243 1686 4.43 16.09T72 14,619.79 1,477.93 Subtotal 38-511,055.10 Union MM 540,886.63 30 30 4.801/, 2,133.91 2.133.91 Purchased Inte rest 51.095.03 LAIF N/A 06/30/06 21,085,991.15 09/30/06 62 30 92 4.959 194.737.98 194.737.98 60,189 027.91 356 4.30% 1 916 606 76 1661 420 29 255.186.47 Maturity Profile Amount Percent 0-1 year 37,134,222.19 61.70% 1-2 years 12,569,559.22 20.889 2-3 years 8229,881.00 13.679 3-5 years 2255365.50 3.75% 60.189.027.91 10(1.0(9 Market to Cost Position Report Market Amortized Market Unrealized Dep Institution Security- Price cost value` Gain (Loss) Union Bank A ssets 38.511.055. 10 37,892,65030 (618,404.8(1) Union MM 540,886.63 540.886.63 0.00 Purchased Inte rest 51.095.03 51.095,03 LAIF Totals: 21 085 991.15 60,189,027.91 21.085.991.15 59,570,623.11 0.00 (61&404.80) * Source: Treasury a LAIF bal nd Agency Obl ances per Loca i;ations -Union Bank of California l Agency Investment Fund monthly statement. Meeting date: November 6, 2006 Item No: Town of Los Gatos Treasurer's Report for the month ended July 31, 2006 Submitted November 1, 2006 by Linda L. Speicher Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summary Investment Information July 31, 2006 Weighted Average Portfolio Yield: 4.28% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $65,643,634 $66,482,900 $56,391,210 Benchmarks/ References: Town's Average Yield 4.28%0 LAIF Yield for month 4.85% 3 mo. Treasury 5.11% 6 mo. Treasury 5.17% 2 yr. Treasury 5.09% 5 yr. Treasury (most recent) 5.00% Prime rate 8.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (07/18/06) 5.43% 2 yr. Fannie Mae (06/13/06) 5.27% I - 2 ycair, 24% 4.17% 2.96% 4.60% 3.08% 5.04°70 3.42% 5.32% 3.66% 5.24% 3.98% 5.20%c 3.97% 8.25% 6.25% Portfolio Maturity Profile - I year 62% 343 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 1 3 - 5 years 2 - 3 years . 13% tC/1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances July 31, 2006 Fund Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Month YTD $66,482,899.82 566,482,899.82 2,224,295.32 2,224,295.32 (3,063,560.87) (3,063,560.87) $65,643,634.27 $65,643,634.27 Portfolio Allocation Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund 405,241.64 38,528,147.94 23,085.991.15 62,019,380.73 3.624 253.54 $65,643.634.27 Local Agency Investment Fm 37.2% US Govt Agencies 62.1% Treasurer's Fund Balances +68,000.000 $67900.000 866.000. W u $65.06u.i , ~0 $64.000.000 $63.000.000 $62.00 WOO S61.000.000 $60.000.000 Y59.000,000 $58.001.000 `;57.000.000 $56.000.00( $55.0(,J.00(, $54,000,000 $53,000.000 $52,000.000 ' .J z u page 2 1 Portfolio Investment Allocation Union MM 0,7% Town of Los Gatos Non-T reasury Restricted Fund Balances July 31, 2006 Previous Ending Balance Deposits Interest Withdrawals Balance Non Treasury Funds: Downtown Parking District 12/20102 246,126.66 527.12 246.653.78 Note I Certificates of Participation Reserve Fund (Lot 4) 261.787.53 940.69 261728.22 Note 2 Cert. of Participation Lease Payment Fund (Lot 4) 193,104.53 622.91 193,727.44 Note3 Cert. of Participation 2002 Series A Const. Fund 1,688,262.22 44.56 4.05 1.688.3 02.73 Note4 Cert of Participation 2002 Series A Reserve Fund 767,817.09 310.87 26.47 768.101.49 Note4 Cert. Of Participation 2002 Series A Interest Fund 300.66 457,428.09 1.13 457,729.88 Cert. Of Participation 2002 Series A COI Fund 0.00 0.00 0.00 0.00 Note 4 Total Restricted Funds: $3.157.398.69 5457.428.09 52.447.28 530.52 83.617.243.54 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: Interest accrued at beginning of period Interest earned on investments Town of Los Gatos Statement of Interest Earned July 31, 2006 Current Month 298,787.72 201,993.90 (268,699,72) $232,081.90 Pa,e 4 Fiscal Year to Date 298,787.72 201,993.90 (268,699.72) $232,081.90 Town of Los Gatos Inac tive Deposits by Institution Market to Cost Position Report July 31, 2006 Inactive Deposits by Institution Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Del) Institution Securitv Date Cost Date Elapsed Maturity Invested Maturity Earned Received Accred FHLB Discount Note 05/12/06 1,185.060.83 08/11/06 80 II 91 5.0569 13,132.42 0.00 13.132.42 FN%IA Discount Note 05112/06 1.078.739.44 09/29/06 80 60 140 5.1389', 11148.08 0.00 12,148.08 FNMA Discount Note 06/02/06 1;175,395.33 10/16/06 59 77 136 5.178:, 10,67495 10,674.95 939 FFCB Coupon Note 03/16/05 498,560,00 12/1 ]/06 502 133 635 3.800 , 26,056.25 22.404.51 3.651.74 934 FNMA Coupon Note 08/18/04 1,491,000.00 01/12/07 712 165 877 3.060% 89,012.66 79300.00 9212.66 940 FHLB Coupon Note 03/16/05 543;228.45 02!09/07 502 193 695 3.9301k 29,362.02 13,743.65 15.618.37 929 I=NM V Coupon Note 02/09/04 2,000,000.00 05/09/07 903 282 1185 3.000% 148.438.36 120,000.00 28,438.36 942 FHLB Coupon Note 05/16/05 999.(H)Q00 05/16/07 441 289 730 4.0431, 48,799.45 39,900. N) 8.899.45 943 FN A Coupon Note 07/01/05 749,03150 05/17107 395 290 685 3.815% 30,924.27 IOA25.00 20,299.27 930 FHLMC Coupon Note 02/24/04 2.505.250.00 08/24/07 888 389 1277 3.1561, 192357.08 161.000.00 31,357.08 946 FHLMC Discount Note 08/15105 1,500,000.00 11115/07 350 472 822 4.4969 64,668.49 33.750.00 30,918.49 944 FNMA Coupon Note 07/01/05 984,07454 12/15/07 395 502 897 3.8079 40.542.93 29.861.11 10,681.82 947 FHLMC Discount Note 08/15/05 999,700.00 02/15/08 350 564 914 4.513% 43,26236 22,500.00 20.762.36 1 S'Freasury Note 05/12/06 1.986,562.50 03/31/08 80 609 689 5.00011, 21,77055 21,770.55 945 FHLB Coupon Note 07/01/05 755,975.25 04/18/08 395 627 1022 3.8039 31,112.73 24.664.06 6.448.67 1 STmasury Note 06/15/06 1,99031250 05/31/08 46 670 716 5.13511, 12,88032 12.88032 USTreasury Note 07/19/06 738,281.25 02/15/09 12 930 942 5.1571, 1,251.72 1.251.72 1`111,13 Coupon Note 05/12/06 1,498.035.00 03113/09 80 956 1036 5.2981, 17,395.26 17395.26 USTreasin Note 05/15/06 1,992,34375 05115/09 77 1019 1096 5.0149 21,07398 21.473.98 FHLB Coupon Note 06/15/06 1.491400.00 06/12/09 46 1047 1093 52269, 2835.82 9,835.82 FFCB Coupon Note 07/19/06 723,562.50 07/17/09 12 1082 1094 5.408% 1286.47 1.286 47 FNA7A Coupon Note 06/10/04 297,213.00 08/11/06 781 11 792 3.1775, 20,204.27 13,772.92 6,431.35 FHLB Coupon Note 06/30/03 400,000.00 09/29/06 1127 60 1187 2.2001/, 27,171.51 24240.00 2.931.51 FHLMC Coupon Note 02/22/05 197,629.00 10/15/06 524 76 600 3507% 9,950.04 6,309.72 3,64032 FHLB Coupon Note 06/24/03 688,076.80 11/15/06 1133 107 1240 1-825% 38,97955 76,340.00 (37,360.45) FFCB Coupon Note 0625/03 660,954.00 12/19/06 1132 141 1273 1.844% 37,799.47 87262.50 (49,463.03) FHLB Coupon Note 06/30/03 400,000.00 12/29/06 1127 151 1278 2.2259, 27,480.27 26,700.00 780.27 FNMA Coupon Note 02/22/05 195358.60 02/15/07 524 199 723 3.363% 9.431.87 4.657.64 4,774.23 FHLMC Coupon Note 0625/03 662,652.00 03/15/07 1132 227 1359 19469 39,992.81 79,625.00 (39,632.19) FNMA Coupon Note 06/30/03 333,597.66 04/15/07 1127 258 1385 2.1509, 21145.86 43,968.75 (21,822.89) FHLMC M'FJ Coupon Note 0627/03 402,556.00 0529/07 1130 302 1432 2.808% 34,995.24 35,033.33 (38.09) FNMA Coupon Note 06/30/03 375,219.60 07/15/07 1127 349 1476 2.359% 27,330.31 45,244.79 (17,914.48) FHLB Coupon Note 06/24/03 672,825.60 11/1 M)7 1133 472 1605 2257% 47,138.00 64373.33 (17,635.33) FNMA Coupon Note 06/24/03 299,475.00 12/24/07 1133 511 1644 25289, 23,50037 22,5().00 1,000.37 FNMA Coupon Note 0627/)3 649,785.94 01/15/08 1130 533 1663 2.492% 50,130.72 61448.50 (12,317.78) 1'111-MC Coupon Note 09/30/04 198,630.00 0225/08 669 574 1243 3.462% 12,603.91 9,118.06 3,485.85 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 1131 593 1724 2294% 46,729.41 48,236.08 (1,506.67) FIlC.13 Coupon Note 06/30/03 286,162.50 04/15/08 1127 624 1751 2.6339, 23,264.55 41.037.50 (17,772.95) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 1131 652 1783 2.5079 51,407.61 99,253.86 (47,846.25) FHLMC MTN Coupon Note 06/30/03 228,298.00 06/13/08 1127 683 1810 2.8949, 20,400.07 18,676.32 1.723.75 FHLMC Coupon Note 06/24/03 500,000.00 06/18!)8 1133 688 1821 2.75011, 4168151 41,250.40 1,431.51 FNMA Coupon Note 09/30/04 198,597.00 08/15/08 669 746 1415 3.4429, 12,529.01 8,937.50 3.59151 FNM Coupon Note 11/16/04 199,216.00 09/15/08 622 777 1399 3.8669 13,124.52 9,979.17 3,145.35 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 558 777 1335 3.974% 15,076.36 10,833.33 4.243.03 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 622 840 1462 3.9369 13,384.70 11.646.53 1,738.17 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 389 896 1285 4.313% 13,624.44 12,43229 1.192.15 FNMA Coupon Note 01/21/05 242,400.00 03/16/09 556 959 1515 3.9309, 14,51133 9,006.08 5,505.25 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 409 1095 1504 4.359% 14,663.08 14,692.71 (29.63) FHLMC Coupon Note 08/01/05 298,33200 07/30/09 364 1095 1459 4.5279 13,468.49 13,08854 379.95 FHLMC Coupon Note 06114/)5 298,683.00 09101/09 412 1128 1540 4.237% 14284.77 8,834.37 5.450.40 FHLMC Coupon Note 0121/05 149,686.50 09/01/09 556 1128 1684 4.1809 9,531.05 6,875.00 2.656.05 FHLMC Coupon Note 06114/05 299,331.00 0125/10 412 1274 1686 4.431% 14,971:14 14,619.79 351.45 Subtotal 38.485,663.93 Union MM 405,241.64 30 30 4.779 1,588.77 1,588.77 Purchased Interest 42.484.01 LAIF N/A 06/30/06 23.085.991.15 09/30/06 31 61 92 4.85% 101,554.56 101,554.56 62,019,380.73 343 428% 1731 635.84 1.529.641.94 201,993 90 Maturity Profile 0-1 year 1-2 years 2-3 years 3-5 years Amount 37,966,990.01 14,876,212.22 7,704.915.50 747.700.50 61 295.818 23 Market Amortized Price _ Cost Percent 61.949 2427%, 12.579 1.22°J, 100.009 Market Unrealized Value* Gain (Loss) Market to Cost Position Report D_1. -Institution Security Union Bank Assets 38,485,663.93 37,755,747.15 (729,916.78) Union MM 405,241.64 405241.64 0.00 Purchased Interest 42.484.01 42.484.01 LAIF 23,085 991.15 23 085.991.15 0.00 * Source: 'I reasury and Agency Obligations - Union Bank of California 'T'otals: 62,019,380.73 61,289,463.95 1729,916.78) LAIF balances per Local Agency Investment Fund monthly statement.