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03 Staff Report - Treasurer's Report August Through October 2007MEETING DATE: 11/19/07 °w N 0 ITEM NO. s COUNCIL AGENDA REPORT OS GAtO DATE: November 19, 2007 TO: MAYOR AND TOWN COUNCIL FROM: LINDA SPEICHER, TOWN TREASURER/ SUBJECT: TREASURER'S REPORTS FOR AUGUST THROUGH OCTOBER 2007 RECOMMENDATION: Accept reports as attached. DISCUSSION: Attached for your review and acceptance are the Treasurer's reports for the months of August, September and October 2007. Prime started dropping in September (one half point) and then dropped another quarter point at the end of October. This has had a negative effect on the yield of the portfolio and prices of investments. At the end of October, the portfolio was heavy in cash/short term investments, waiting for the markets to settle down. The cash will be reinvested during November. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: None Attachments: Treasurer's reports dated November 14, 2007 PREPARED BY: Linda L. Speicher, Town Treasurer Reviewed by: 5 Town Manager Assistant Town Manager Town Attorney Clerk J U inance Community Development Revised: 11/14/07 10:02 pm Distribution: Town Council; Town Manager; Finance Director Reformatted: 5/30/02 Meeting date: November 19, 2007 Item No: Town of Los Gatos Treasurer's Report for the month ended October 31, 2007 Submitted November 15, 2007 by Linda L. Speicher Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summary Investment Information October 31, 2007 Weighted Average Portfolio Yield: 4.76% Weighted Average Maturity (days) 380 This Month Last Month One year al;o Portfolio Balance $65,350,972 $67,775,046 $60,275,043 Benchmarks/ References: Town's Average Yield 4.76% 4.86% 4.27% LAIF Yield for month 5.14% 5.24% 5.10% 3 mo. Treasury 4.03% 3.92% 5.09% 6 mo. Treasury 4.09% 4.15% 5.15% 2 yr. Treasury 3.72% 4.00% 4.89% 5 yr. Treasury (most recent) 3.99% 4.25% 4.69% Prime rate 7.50% 7.75% 8.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (09/13/07) 4.45% 2 yr. Freddie Mac (09/07/07) 4.96% Portfolio Maturity Profile 3 - 5 years 12% 2-3y 10, 1 - 2 years 13% 1 year 55% Compliance: The Town's investments are in compliance with the Town's investment policy dated November 1, 2006 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 October 31, 2007 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 $67,775,04631 $73,499,683.31 2,666,071.05 8,840,613.75 (5,090,145.16) (16,989,324.86) $65,350,972.20 $65,350,972.20 $5,309,756.13 35,502,452.51 23.769.926.87 64,582,135.51 768,836.69 $65,350,972.20 Local Agency Investment Fu 36.8% 3ovt Agencies 55.0% Treasurer's Fund Balances $74,000.000 $71,000,000 $68,000.000, $65.000,000 $62,000.000 j $59.000.000 0 0 0 0 0 0 0 0 0 0 0 0 0 V ~ y C .a ,y p, C ~ G4 O. U z Q ¢ ¢ o page 2 Portfolio Investment Allocation Union MM 8.2% Town of Los Gatos Non-Treasury Restricted Fund Balances October 31, 2007 Previous Ending Balance Deposits Interest Withdrawals Balance Non-Treasury Funds: Downtown Parking District 12/20/02 $257,933.56 $956.50 $258,890.06 Note 1 Certificates of Participation Reserve Fund (Lot 4) 256,024.34 900.50 1,888.08 255,03636 Note2 Cert. of Participation Lease Payment Fund (Lot 4) 8,543.10 58,984.98 30.05 67,558.13 Note 3 Cert. of Participation 2002 Series A Const. Fund 372,532.25 4,890.34 0.10 377422.49 Note 4 Cert. of Participation 2002 Series A Reserve Fund 779,287.44 2,707.55 236.69 781,758.30 Note4 Cert. Of Participation 2002 Series A Interest Fund 796.93 2.76 0.10 799.59 Note4 Cert. Of Participation 2002 Series A COI Fund 0.00 0.00 0.00 0.00 Note 4 Total Restricted Funds: $1.675,177.62 $58,984.98 $9.487.70 $2,124.97 $1.741,465.33 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 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 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 October 31, 2007 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 Interest by Month July 2007 August 2007 September 2007 October 2007 Current Fiscal Month Year to Date $582,156.66 $1,292,907.70 451,626.99 451,626.99 (762,559.88) (638,512.99) $271,223.77 $1,106,021.70 287,856.35 285,325.36 261,616.22 271,223.77 1,106,021.70 Paue 4 Town of Los Gatos Inact ive Deposits by Institution Market to Cost Position Report October 31, 2007 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Securitv Date Cost Date Elapsed Maturity Invested Maturity Earned Received Accrued FHLMC Discount Note 08/15/05 1,500,000.00 11/15/07 807 15 822 4.496% 149,107.07 135,000.00 14,107.07 FNMA Coupon Note 07/01/05 984,074.54 12/15/07 852 45 897 3.807% 87,449.55 61,111.11 26,338.44 FHLMC Discount Note 08/15/05 999,700.00 02/15/08 807 107 914 4.513% 99,750.64 90,000.00 9,750.64 US'IYeasury Note 05/12/06 1,986,562.50 03/31/08 537 152 689 5.000%r. 146,134.80 128,135.25 17,999.55 FHLB Coupon Note 07/01/05 755,975.25 04/18/08 852 170 1022 3.803% 67,108.98 71,070.31 (3,961.33) USTreasury Note 06/15/06 1,990,312.50 05/31/08 503 213 716 5.135% 140,843.51 93,504.10 47,339.41 USTreasury Note 07/19/06 738,281.25 02/15/09 469 473 942 5.157% 48,921.41 36,267.27 12,654.14 FHLB Coupon Note 05/12/06 1,498,035.00 03/13/09 537 499 1036 5.298% 116,765.71 105,218.75 11.546.96 USTreasury Note 05/15/06 1.992.343.75 05/15/09 534 562 1096 5.014% 146,149.39 97,500.00 48.649.39 FHLB Coupon Note 06/15/06 1,493,400.00 06112/09 503 590 1093 5.226% 107,552.54 78.093.75 29,458.79 FFCB Coupon Note 07/19/06 723,562.50 07/17/09 469 625 1094 5.408% 50 79.70 30,765.62 19,514.08 USTreasury Note 11/17/06 748,066.41 11/15/09 348 746 1094 4.734% 33,764.07 17,15111 16,611.96 ML Corp Note 04/10/07 976,150.00 02/08/10 204 831 1035 5.165% 28,178.91 13.930.56 14,248.35 USTreasury Note 10/19/06 976,406.25 04/15/10 377 897 1274 4344% 47,843.59 39,560.44 8.283.15 FHLB Coupon Note 08/22/06 1.507.665.00 06/11/10 435 954 1389 4.957% 89.067.68 57.000.00 32.067.68 FHLB Coupon Note 01/12/07 1,487,205.00 08/10/10 292 1014 1306 4.960% 59,012.29 40,733.33 18,278.96 USTreasury Note 05/31/07 737,226.56 10115110 153 1080 1233 4.801% 14,836.49 11,931.35 2.905.14 FNMA Coupon Note 05/09/07 998.200.00 11/08/10 175 1104 1279 5.250% 25,125.92 25,125.92 FNMA Discount Note 09/29/06 1,516,485.00 04/15/11 397 1262 1659 4.874% 80393.56 80,291.67 101.89 FHLMC Coupon Note 12128/06 1.522.350.00 07/20/11 307 1358 1665 5.375% 68.823.78 48.395.83 20,427.95 USTreasury Note 10/19/06 990,078.13 09/30/11 377 1430 1807 4321% 48,278.30 42,651.10 5,627.20 FFCB Coupon Note 02/22/07 9861080.00 12/08/11 251 1499 1750 4.959% 33,626.92 13,618.06 20,008.86 FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 175 1591 1766 4.743% 34,321.08 25,000.00 9,321.08 FHLB Coupon Note 06/24103 672,825.60 11/15/07 1590 15 1605 2.257% 66,151.29 87,173.33 (21,022.04) FNMA Coupon Note 06/24/03 299,475.00 12/24/07 1590 54 1644 2.528% 31979.34 30,000.00 2,979.34 FNMA Coupon Note 06/27/03 649,785.94 01/15/08 1587 76 1663 2.492% 70,404.82 82,923.50 (12,518.68) FHLMC Coupon Note 09/30/04 198,630.00 02125/08 1126 117 1243 3.462% 21,213.75 18,868.06 2,345.69 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 1588 136 1724 2.294% 65,611.23 74,842.33 (9,231.10) FHLB Coupon Note 06/30/03 286,162.50 04/15/08 1584 167 1751 2.633% 32,698.35 63,087.50 (30,389.15) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 1588 195 1783 2.507% 72,179.74 133,710.36 (61,530.62) FHLMC MTN Coupon Note 06/30/03 228,298.00 06/13/08 1584 226 1810 2.894% 28,672.33 25,001.32 1671.01 FHLMC Coupon Note 06/24103 500,000.00 06/18/08 1590 231 1821 2.750% 59,897.26 55,000.00 47897.26 FNMA Coupon Note 09/30/04 198,597.00 08115/08 1126 289 1415 3.442% 21,087.69 18,687.50 2,400.19 FNMA Coupon Note 11/16/04 199,216.00 09/15/08 1079 320 1399 3.866% 21767.46 21,229.17 1,538.29 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 1015 320 1335 3.974% 27.423.85 24.895.83 1528.02 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 1079 383 1462 3.936% 23,218.80 19,396.53 3,822.27 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 846 439 1285 4.313% 29,630.54 24,057.29 5,573.25 FNMA Coupon Note 01121/05 242,400.00 03/16/09 1013 502 1515 3.930% 26,438.80 20,724.83 5,713.97 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 866 638 1504 4.359% 31,047.00 271817.71 3,229.29 FHLMC Coupon Note 08/01/05 298,332.00 07/30/09 821 638 1459 4.527% 30378.10 26,213.54 4,164.56 FHLMC Coupon Note 06/14/05 298,683.00 09/01109 869 671 1540 4.237% 30,129.77 27,396.87 2,732.90 FHLMC Coupon Note 01/21/05 149,686.50 09/01/09 1013 671 1684 4.180% 17,365.03 16.156.25 1,208.78 FHLMC Coupon Note 06/14/05 299,331.00 01/25/10 869 817 1686 4.431% 31.577.69 27,744.79 3,832.90 Subtotal 35.502.308.07 Union MM 5309.756.13 30 30 4.33% 18,896.91 18.896.91 Purchased Inter est 144.44 LAIF N/A 09/30/07 23,769,926.87 12/31/07 31 61 92 5.14% 110378.63 110,378.63 $64,582,135.51 380 4.76% S1593,484.31 $2,141,857.32 $451.626.99 Maturity Profile Amount Percent 0-1 year $42,096.760.16 65.18% 1-2 years $8,230,877.00 12.74% 2-3 years $6,732.050.22 10.42% 3-5 years $7.522.448.13 11.65% $64.582.135.51 100.00% Market to Cost Position Report Amortized Market Unrealized * Source: Treasury and Agency Obliga tions - Union Ban k of California Institution Cost Value* Gain (Loss) LAIF balances per Local Agency Inves tment Fund mont hly statement. Union Bank A ssets $35,502308.07 $35,651,787.05 149,478.98 Union MM 5,309,756.13 5,309,756.13 0.00 Purchased Inte rest 144.44 144.44 0.00 LAIF 23,769,926.87 23,769.926.87 0.00 Totals: $64,582,135.51 $64,731,614.49 $149,478.98 page 5 Meeting date: November 19, 2007 Item No: Town of Los Gatos Treasurer's Report for the month ended September 30, 2007 Submitted November 15, 2007 by Linda L. Speicher Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summ ary Investment Information September 30, 2007 Weighted Average Portfolio Yield: 4.86% Weighted Average Maturity (days) 378 This Month Last Month- One year ago Portfolio Balance $67,775,046 $68,133,279 $60,585,832 Benchmarks/ References: Town's Average Yield 4.86% 4.88% 4.35% LAIF Yield for month 5.24% 5.25% 5.02% 3 mo. Treasury 3.92% 4.73% 4.90% 6 mo. Treasury 4.15% 4.78% 5.00% 2 yr. Treasury 4.00% 4.12% 4.66% 5 yr. Treasury (most recent) 4.25% 4.25% 4.57% Prime rate 7.75% 8.25% 8.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (09/13/07) 4.45% 2 yr. Freddie Mac (09/07/07) 4.96% Portfolio Maturity Profile 3 - 5 years 12c,< 2-3 ye 1117, 1 - 2 year, 12% . 1 year 65% Compliance: The Town's investments are in compliance with the Town's investment policy dated November 1, 2006 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 l Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances September 30, 2007 Month YTD Fund Balances - Beginning of Month/Period $68,133,279.29 - $73;499,683.3 Receipts 1,696,429.03 6,174,542.7 Disbursements (2,054,662.01) (11,899,179.7 Fund Balances - End of Month/Period $67,775,046.31 $67,775,046.3 Portfolio Allocation: Union MM $3,512,015.94 US Govt Agencies 37,089,071.16 Local Agency Investment Fund 27,099,009.96 Subtotal -Investments 67,700,097.06 Reconciled Demand Deposit Balances 74.949.25 Total Treasurer's Fund =$67,775,046.31 Portfolio Investment Allocation Union MM 5.2'% Local Agency Investment Fun( 40.0% US Govt Agencies 54.8% page 2 Town of Los Gatos Non-Treasury Restricted Fund Balances September 30, 2007 Previous Ending Balance Deposits Interest Withdrawals Balance Non-Treasury Funds: Downtown Parking District 12/20/02 $256,948.95 $984.61 $257,933.36 Note t Certificates of Participation Reserve Fund (Lot 4) 255:129.53 894.81 256.024.34 Nut, 2 Cert. of Participation Lease Payment Fund (Lot 4) 8,513.34 29.76 8,543.10 Note 3 Cert. of Participation 2002 Series A Const. Fund 372,530.04 2.29 0.08 372,532,25 Note 4 Cert. of Participation 2002 Series A Reserve Fund 776.840.04 2,691.35 243.95 779,281.44 Note 4 Cert. Of Participation 2002 Series A Interest Fund 794.46 2.55 0.08 796.93 Note 4 Cert. Of Participation 2002 Series A COI Fund 0.00 0.00 0.00 0.00 Note 4 Total Restricted Funds: $1,670,756.36 $0.00 $4,605.37 $244.11 $1,675,117.62 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 us Rc<cr\ e I kinds set up as required by the original Boud nsoludon: Note 2: The reserve fund was a requirement of the original certificate., 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 I rom 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 disbui anent of lease payments and initial delivery costs. Page 3 Town of Los Gatos Statement of Interest Farned September 30, 2007 Current Fiscal Month Year to Date Interest received from Investments $100,704.18 $710,751.04 Add: Interest accrued at end of period (see page 5) 762,559.88 762,559.88 Less: Interest accrued at beginning of period (601,647.84) (638,512.99) Interest earned on investments $261,616.22 $834,797.93 Page 4 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report September 30, 2007 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Tnterest Institution Securitv Date Cost Date Elapsed Maturity Invested Maturity Earned Rccer cd Accrued FHLMC Discount Note 08/15/05 1,5007000.00 11115107 776 46 822 1.496% 143,379.29 131.000.00 21,379.29 FNMA Coupon Note 07/01/05 984.074.54 12115/07 821 76 897 3.807% 84,267.70 01.111.11 23.156.59 FHLMC Discount Note 08/15/05 999,700.00 02115/08 776 138 914 4.513% 95,918.83 90.000.00 5.918-83 USTreasury Note 05/12/06 1,986,562.50 03131708 506 183 689 5,000% 137,698.72 81.885?5 55,813.47 FHLB Coupon Note 07/01/05 755,975.25 04118/08 821 201 1022 3.803% 64,667.22 55.601 .56 9,065.66 USTreasury Note 06/15/06 1,990312.50 05131108 472 244 716 5.135% 132,163.29 93501.10 38,659.19 USTreasury Note 07/19/06 738181.25 02115/09 438 504 942 3157% 45,687.80 36.207'7 9,420.53 FHLB Coupon Note 05/12/06 1,498,035.00 03113/09 506 530 1036 5.298% 110,025.05 105.218.7- 4.806.30 USTreasury Note 05/15/06 1,992,343.75 05/15/09 503 593 1096 501-1!0 137,665.06 97500.00 10.165.06 FHLB Coupon Note 06/15/06 1,493,400.00 06/12/09 472 621 1093 5226% 100,924.05 78.093.75 ?2,830.30 FFCB Coupon Note 07/19/06 723,562.50 07/17/09 438 656 1091 5.408% 46,956.31 30.765.61 16.190.69 USTreasury Note 11/17/06 748,066.41 11115/09 317 777 109-4 4.73470 30,756.35 17.152.11 13.004.24 ML Corp Note 04/10/07 976,150.00 02/08/10 173 862 1035 5.165% 23,896.82 1393056 9.966.26 USTreasury Note 10/19/06 976,406.25 04/15/10 346 928 1274 4.744% 43,909.50 19.560.44 24.349.06 FHLB Coupon Note 05/18/07 1,574,842.50 04/16/10 135 929 1064 5 541i% 32,315.77 32.315.77 FHLB Coupon Note 08/22/06 1,507,665.00 06/11/10 404 985 1389 4.957% 82,720.33 57.000.00 25.720.33 FHLB Coupon Note 01/12/07 1,487,205.00 i)8/10/10 261 1045 1306 -t.960`ao 52,747.29 40.733.33 12.013.96 USTreasury Note 05/31/07 737,226.56 1 0 / 1 X110 122 I I H 1233 4.K01% 11.830.41 1 1.330.41 FNMA Coupon Note 05/09/07 998,200.00 11108f10 144 1135 1279 5350% 20,675.05 ?0,675-05 FNMA Discount Note 09/29/06 L516A85.00 04115/11 366 1293 1659 4.874% 74,115.98 41.85-1.17 32.261.81 FHLMC Coupon Note 12/28/06 1,522,350.00 07/20/11 276 1389 1665 5.375% 61,874.14 48.395.83 13.-178.31 USTreasury Note 10/19/06 990,078.13 09/3()/11 346 1461 1807 4.721% 44,308.46 20.111.10 24.157.36 FFCB Coupon Note 02/22/07 986,080.00 12/08/1 1 220 1530 1750 4.959% 29,473.80 13.618.06 15,855.74 FHLB Coupon Note 05/09/07 1,509,255.00 03/09/1'_ 144 1622 1766 4.743% 28,241.34 2-.000.00 3,241.34 FHLB Coupon Note 06/24/03 671825.60 I1/1i/07 1559 46 1605 2'57"/0 64,861.55 87.17333 22,311.78) FNMA Coupon Note 06/24/03 299,475.00 12/24/07 1559 85 164,4 2,5 281e 32,336.34 30,000.00 2.336.34 FNMA Coupon Note 06/27/03 649,785.94 01/15/D8 1556 107 1663 2.492% 69,029.56 82.92350 13.893.94) FHLMC Coupon Note 09/30/04 198,630.00 02/1-/08 1095 148 1243 3.462% 20,629.71 18.05.06 1;761.65 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 1557 167 1724 2394% 64,330.40 74.8423 ; (10.5 t 1.93) FHLB Coupon Note 06/30/03 286,162.50 04/15/08 1553 198 1751 2633% 32,058.42 55.737.50 (2-3.67908) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 1557 226 1783 2.5071x• 70,770.69 ;33,710.36 (62:939.67) FHLMCMTN Coupon Note 06/30/03 228,298.00 06/13/08 1553 257 1810 2.8941:o 28,111.19 25.00132 3,109.87 FHLMC Coupon Note 06/24/03 500,000.00 0(/18/08 1559 262 1821 2.75011, 58,729.45 55.000.00 3:729.45 FNMA Coupon Note 09/30/04 198,597.00 OS/ 15/03 1095 320 1415 3. 1270 20,507.13 18.687.50 1,819.63 FNMA Coupon Note 11/16/04 ° 199,216.00 (19/15/08 1048 351 1399 3.866% 22,113.35 21329.17 884.18 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 984 351 1335 3.974% 26,586.28 24,89-.83 1.690.45 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 1048 414 1462 3.9 367, 22,551.72 19.396.53 3,155.19 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 815 470 1285 4.31 390 28,544.79 24.05739 1,487.50 FNMA Coupon Note 01/21/05 242,400.00 03/16/09 982 533 1515 2.93090 25,629.72 20.724.83 4,904.89 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 835 669 1504 4.359% 29,935.62 17.711 2.117.91 FHLMC Coupon Note 08/01/05 298,332.00 07/30/09 790 669 14.59 4.527% 29,231.06 26?I354 3,017.52 FHLMC Coupon Note 06/14/05 298,683.00 09001/09 838 702 1540 4.237% 29,054.95 27.396.87 1.658.08 FHLMC Coupon Note 01/21/05 149,686.50 09/01/09 982 702 1684 4.180% 16,833.62 16,156?5 677.37 FHLMC Coupon Note 06/14/05 299,331.00 01/25/10 838 848 1656 4.431% 30,451.21 27,744.79 2,706.42 Subtotal 37.077.150.57 Union MM 3,512,015.94 30 30 4.52% 13,047.38 13.047.38 Purchased In terest 11,920.59 LAIF N/A 06/30/07 27,099,009.96 00/30/07 92 0 92 -.241/0 370,916.91 370,916.91 $67,700,097.06 378 4.86% $2,741479.60 $1.979.919.72 $762.559.88 Maturity Profile Amount Percent 0-1 year $43,639.879.21 6.1.46% 1-2 years $8,230,877.00 12.16% 2-3 years $7,569,666.16 11.18% 3-5 years $8,259.674.69 1-1-10% $67.700.097.06 100.00% Market to Cost Position Report Amortized Market UMCca117Cd Institution Cost V,Iluc Gain (1.( Union Bank Assets $37.077.150.57 S37? 17 _515.60 140.36-.03 Union MM 3.512.015.94 3.5 12.01 5.94 0100 Purchased Interest 11,920.59 1 1.920.59 0:50 LAIF 27,099,009.96 32092009.96 O.oO Totals: $67,700,097.06 $67,840,462,09 $140,365.03 Source: Treasury and Agency Obligations - Union Sunk of California LAIF balances per Local Agency Investment Fund monthly rtatenrcnt. page 5 Meeting date: November 19, 2007 Item No: Town of Los Gatos Treasurer's Report for the month ended August 31, 2007 Submitted November 15, 2007 by Linda L. Speicher Distribution: Town Clerk Town Manager Town Council Town of Los Gatos Summary Investment Information August 31, 2007 Weighted Average Portfolio Yield: 4.88% Weighted Average Maturity (days) 407 This Month Last Month One -year ago Portfolio Balance $68,133,279 $69,314,343 $64,679,337 Benchmarks/ References: Town's Average Yield 4.88% 4.82% 4.30% LAIF Yield for month 5.25% 5.26% 4.95% 3 mo. Treasury 4.73% 4.97% 5.09% 6 mo. Treasury 4.78% 5.00% 5.17% 2 yr. Treasury 4.12% 4.74% 4.92% 5 yr. Treasury (most recent) 4.25% 4.64% 4.74% Prime rate 8.25% 8.25% 8.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (08/13/07) 5.10% 2 yr. Fannie Mae (07/13/07) 5.17% Portfolio Maturity Profile 3 - 5 years 12% 2-3 ye 11% 1 - 2 year 13% - 1 year 64% Compliance: The Town's investments are in compliance with the Town's investment policy dated November 1, 2006 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 August 31, 2007 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 $69,314,343.35 573,499,683.31 2,026,226.44 4.478,113.67 (3,207,290.50) (9,844,517.69) $68,133,279.29 568,133,279.29 $3,391,769.46 37,108,654.49 27,099,009.96 67,599,433.91 533,845.38 $68,133,279.29 Local Agency Investment Futa 40.1% Treasurer's Fund Balances US Govt Agencies 54.9% Portfolio Investment Allocation Union MM 5.Ooi Town of Los Gatos Non-Treasury Restricted Fund Balances August '31 2007 Previous Ending Balance Deposits Interest Withdrawals Balance Non-Treasury Funds: Downtown Parking District 12/20/02 $255,968.09 $980.86 $256,948.95 Noa~ I Certificates of Participation Reserve Fund (Lot 4) 254,136.26 993.27 255,129.53 '-t, 2 Cert. of Participation Lease Payment Fund (Lot 4) 224,439.09 824.25 216,750.00 8,513.34 Not, 3 Cert. of Participation 2002 Series A Const. Fund 72.527.63 2.50 0.09 372,530.04 Smc 4 Cert. of Participation 2002 Series A Reserve Fund 774,108.45 2,974.63 243.04 776,840.0-3 '-t, 4 Cert. Of Participation 2002 Series A Interest Fund 359,853.75 864.36 459,923.65 794.46 Sot, 4" Cert. Of Participation 2002 Series A COI Fund 0.00 0.00 0.00 0.00 Note 4 Total Restricted Funds: $2.341,033.27 $0.00 $6,639.87 $676,916.78 $1,670,756.36 These accounts are not part of the Treasurer's fund balances repotted 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 a, 1Zc,en e Funds set up as required by the original Bond resolution. Note 2: The reserve fund was a requirement of the original ccrti t icane, of participation agi Gvanent when Lot 4 wa, built. [Chelps to guarantee payment of the lease payments should the Toscn not make payment Note 3: The lease payment fund receives the lease payments h om the Town monthly for t he Iease of Lot 4. It holds thL, finds 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 cuuxn uction funds which will be expended over the next few years, reserve funds which will guarantee the pu)mernt of lea,c payments, and a third fund for the disbursement of lease payments and initial delivery costs. Page 3 Interest received Cron Investments Add: Interest accrued as end of period (see page 5) Less: Interest accrued as hu,-,inoing of period Interest earned on investments Town of Los Gatos Statement of Interest Earned August 31, 2007 Current Month $165,887.58 601,647.84 (452,210.06) $285.325.36 Page 4 Fiscal Year to Date $610,046.86 601,647.84 (638,512.99) $573,181.71 Town of Los Gatos Inact ive Deposits by Institution Market to Cost Position Report August 31, 2007 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Date Elapsed Maturity Invested Maturitv Earned Received Accrued FHLMC Discount Note 08115105 1,500,000.00 11/15/07 746 76 822 4.496% 137,836.27 135,000.00 2,836.27 FNMA Coupon Note 07/01/05 984,074.54 12/15/07 791 106 897 3.807% 81,188.50 61,111.11 20,077.39 FHLMC Discount Note 08/15/05 999,700.00 02/15/08 746 168 914 4.513% 92,210.63 90,000.00 2210.63 USTreasury Note 05/12/06 1,986,562.50 03/31/08 476 213 689 5.000% 129,534.76 81,88525 47,649.51 FHLB Coupon Note 07/01/05 755,975.25 04118/08 791 231 1022 3.803% 62,304.23 55,601.56 6,70167 USTreasury Note 06/15/06 1,990,312.50 05/31/08 442 274 716 5.135% 123,763.08 93,504.10 30,258.98 USTreasury Note 07/19/06 738,281.25 02/15/09 408 534 942 5.157% 42,558.50 36.267.27 6,291.23 FHLB Coupon Note 05/12/06 1,498,035.00 03/13/09 476 560 1036 5.298% 103,501.82 65,843.75 37,658.07 USTreasury Note 05/15/06 1,992,343.75 05/15/09 473 623 1096 5.014% 129,454.42 97,500.00 31,954.42 FHLB Coupon Note 06/15/06 1,493,400.00 06/12/09 442 651 1093 5.226% 94,509.39 78,093.75 16,415.64 FFCB Coupon Note 07/19/06 723,562.50 07/17/09 408 686 1094 5.408% 43,740.13 30,765.62 12,974.51 USTreasury Note 11/17/06 748,066.41 11/15/09 287 807 1094 4.734% 27,845.66 17,152.11 10,693.55 NIL Corp Note 04/10/07 976,150.00 02108/10 143 892 1035 5.165% 19,752.86 13,930.56 5,822.30 USTreasury Note 10/19/06 976,406.25 04/15/10 316 958 1274 4.744% 40,102.32 19,560.44 20,541.88 FHLB Coupon Note 05/18/07 1,574,842.50 04/16/10 105 959 1064 5.548% 25,134.49 25,134.49 FHLB Coupon Note 08/22/06 1,507,665.00 06/11/10 374 1015 1389 4.957% 76,577.73 57,000.00 19,577.73 FHLB Coupon Note 01/12/07 1,487,205.00 08/10/10 231 1075 1306 4.960% 46,684.38 40,733.33 5,951.05 USTreasury Note 05/31/07 737,226.56 10/15/10 92 1141 1233 4.801% 8,921.29 8,921.29 FNMA Coupon Note 05/09/07 998,200.00 11/08/10 114 1165 1279 5.250% 16,367.75 16367.75 FNMA Discount Note 09/29/06 1,516,485.00 04/15/11 336 1323 1659 4.874% 68,040.90 41,854.17 26,186.73 FHLMC Coupon Note 12/28/06 1,522,350.00 07/20/11 246 1419 1665 5.375% 55,148.69 48,395.83 6,752.86 USTreasury Note 10/19/06 990,078.13 09/30/11 316 1491 1807 4.721% 40.466.69 20,151.10 20,315.59 FFCB Coupon Note 02/22/07 986,080.00 12/08/11 190 1560 1750 4.959% 25,454.64 13.618.06 11,836.58 FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 114 1652 1766 4.743% 22,357.73 22,357.73 FHLB Coupon Note 06/24/03 672,825.60 11/15/07 1529 76 1605 2.257% 63,613.41 87,173.33 (23,559.92) FNMA Coupon Note 06/24/03 299,475.00 12/24/07 1529 115 1644 2.528% 31,714.09 30,000.00 1,714.09 FNMA Coupon Note 06/27/03 649,785.94 01/15/08 1526 137 1663 2.492% 67,698.65 82,923.50 (15,224.85) FHLMC Coupon Note 09/30/04 198,630.00 02/25/08 1065 178 1243 3.462% 20,064.51 18,868.06 1,196.45 FHLMC Coupon Note 06/26/03 657,396.09 03/15/08 1527 197 1724 2.294% 63,090.90 65,973.58 (1882.68) FHLB Coupon Note 06/30/03 286,162.50 04/15/08 1523 228 1751 2.633% 31,439.14 55,737.50 (245298.36) FHLB Coupon Note 06/26/03 661,764.30 05/13/08 1527 256 1783 2.507% 69,407.09 133,710.36 (64,303.27) FHLMC MTN Coupon Note 06/30/03 228,298.00 06/13/08 1523 287 1810 2.894% 27,568.15 25,001.32 2,566.83 FHLMC Coupon Note 06/24/03 50000.00 06/18/08 1529 292 1821 2.750% 57,599.32 55,000.00 2,599.32 FNMA Coupon Note 09/30/04 198,597.00 08/15/08 1065 350 1415 3.442% 19,945.29 18,687.50 1,257.79 FNMA Coupon Note 11/16/04 199,216.00 09/15/08 1018 381 1399 3.866% 21,480.33 17,479.17 4,001.16 FNMA Coupon Note 01/19/05 248,157.50 09/15/08 954 381 1335 3.974% 25,775.72 20,208.33 5,567.39 FNMA Coupon Note 11/16/04 199,552.00 11/17/08 1018 444 1462 3.936% 21,906.15 19396.53 2,509.62 FHLMC Coupon Note 07/07/05 296,403.00 01/12/09 785 500 1285 4.313% 27,494.06 24,057.29 3,436.77 FNMA Coupon Note 01/21/05 242,400.00 03/16/09 952 563 1515 3.930% 24,846.73 16,818.58 8,028.15 FHLMC Coupon Note 06/17/05 300,198.00 07/30/09 805 699 1504 4.359% 28,860.09 27,817.71 1.042.38 FHLMC Coupon Note 08/01/05 298,332.00 07/30/09 760 699 1459 4.527% 28,121.02 26,213.54 1,907.48 FHLMC Coupon Note 06/14/05 298,683.00 09/01/09 808 732 1540 4.237% 28,014.80 21.209.37 6,805.43 FHLMC Coupon Note 01/21/05 149,686.50 09/01109 952 732 1684 4.180% 16,319.36 13,062.50 3,256.86 FHLMC Coupon Note 06/14/05 299,331.00 01/25/10 808 878 1686 4.431% 29,361.07 27,744.79 1,616.28 Subtotal 37.077.150.57 Union MM 3,391,769.46 30 30 4.84% 13,492.74 13,49174 Purchased Int erest 31.503.92 LAIF N/A 06/30/07 27.099.009.96 09/30/07 62 30 92 5.25% 255,429.34 255.429.34 $67,599,433.91 407 4.88% $2,486,698.81 $1,885,050.97 $601,647.84 Maturity Profile Amount Percent 0-1 year $43,091,842.56 63.75% 1-2 years $8,678,250.50 12.84% 2-3 years $7,569,666.16 11.20% 3-5 years $8.259.674.69 12.22% $67.599,433.91 100.00% Market to Cost Position Report Amortized Market Unrealized Source: Treasury and Agency Obligati ons - Union Bank of California Institution Cost Value* Gain (Loss) LAIF balan ces per Local Agency Invest ment Fund monthl y statement. Union Bank Assets $37,077,150.57 $37,064,524.50 (12,626.07) Union MM 3,391,769.46 3,391,769.46 0.00 Purchased In terest 31,503.92 31,503.92 0.00 LAIF 27.099.009.96 27.099.009.96 0.00 Totals: $67,599,433.91 $67,586,807.84 ($12,626.07) page 5