03 Staff Report - Treasurer's Report October 2008~qYH 0
ias•• G pros
DATE:
TO:
FROM:
SUBJECT:
COUNCIL AGENDA REPORT
December 10, 2008
MEETING DATE: 12/15/08
ITEM NO. 3
MAYOR AND TOWN COUNCIL
LINDA SPEICHER, TOWN TREASURER .
TREASURER'S REPORT FOR OCTOBER 2008
RECOMMENDATION:
Accept report as attached.
DISCUSSION:
Attached for your review and acceptance is the Treasurer's report for the month of October 2008.
While the last few months have seen many changes in the banking climate and investing markets in general,
the Town's funds have remained strong. Prime was reduced a full point on October 29"', from 5% to 4%.
This change trickled through the bond market more in November than October, with rate declines on short
term treasuries dropping about between .75% and 1%. These rates were down to 1/2% by the end of
November. The rates on newerFannie Mae and Freddie Mac issues has remained at a little under 3%, while
LAIF rates have remained in the 2.5% to 2.7% range. The older investments continue to perform and help
to keep the Town's overall rate of return up.
Previously, Council had requested that certain Fannie Mae and Freddie Mac investments be sold. One
investment that was not sold will more likely than not be called during the month of December. It is a $1
million note with a coupon rate of 4.35%
The Town also holds two corporate notes, one with GE Capital and one with Merrill Lynch. Both are still
currently rated AA or AAA with Fitch and both are currently worth.more than face.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT: None
Attachments: Treasurer's reports dated December 10, 2008.
PREPARED BY: Linda L. Speicher, Town Treasurer
6-1
Reviewed by:
'own Manager Q5,1 Assistant Town Manager Town Attorney
Clerk 4-Finance Corrununity Development Revised: 12/10/08 7:01 pm
Distribution: Town Council; Town Manager; Finance Director
Reformatted: 5130102
Meeting date: December 15, 2Q08
Item No:
Town of Los Gatos
Treasurer's Report
for the month ended
October 31, 2008
Submitted December 10, 2008
by
Linda L. Speicher
Distribution: Town Clerk
Town Manager
Town Council
Town of Los Gatos
Summary Investment Information
October 31, 2008
Weighted Average Portfolio Yield:
3.62%
Weighted Average Maturity (days) 453
This Month
Last Month
One year a_g
Portfolio Balance
$69,737,823
$70,635,879
$65,350,972
Benchmarks/ References:
Town's Average Yield
3.62%
3.64%
4.76%a
LA-IF Yield for month
2.71%
2.77%
5.14%
3 mo. Treasury
0.92%
1.18%
4.030/a
6 mo. Treasury
1.43%
1,57%
4.09%
2 yr. 't'reasury
1.60%
2.12%
3.72%
5 yr. Treasury (most recent)
2.88%
3.13%
3.990/c
Prime rate
4.00%
5.00%
7.50%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr. Fannie Mae (I 1/19108) 2.95%
2 yr. Freddie Mac (10/10/08) 2.88%n
Portfolio Maturity Profile
3 - 5 years
14%
2 - 3 years
15%
0- 1 year
56%
15%
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
Portfolio Allocation & Treasurer's Fund Balances
October 31, 2008
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
Local Agency Investment Fur
37.5%
Month YTD
$70,635,878.70 $76,714,634.03
2,823,290.05 8,943,818,32
(3,721,345.48) (15,920,629.08)
$69,737,823.27 $69,737,823.27
$848,645,81
41,649,744.34
25.496.040.12
67,994,430.27
1,743,393.00
$69,737,823,27
Treasury, Agencies,
& Corp. Notes
57.5%
Treasurer's Fund Balances
.P IO
$76
$74
$72
$70
$68
$66
$64
$62
'000,000
4 W4
Y
3
'000,000
M
E
,000,00
: M X
Y3~~ ri ?x . # x
-5
,000,000
_
W y
~t
~)On.aOn
-
Y YF t
I: -
-
-
- r R
Y
ti`
O o 0 0 4 O tl O O o
0 Z Q 0. Q
ao
O
w
O
as
O
ti11
F
Q'
v
O
page 2
Portfolio Investment Allocation
Union MM
1.2%
Town of Los Gatos
Non-Treasury Restricted Fnnd Ralanees
October 31, 2008
Previous Ending
Balance Deposits Interest Withdrawals Balance
Non-Treasury Funds
Downtown Parking District 12/20/02
$269,847.92
Certificates of Participation Reserve Fund (Lot 4)
254,766.46
Cert. of Participation Lease Payment Fund (Lot 4)
4,012.32 60,495.51
Cert. of Participation 2002 Series A Conn. Fund
239,217.68 93,000.00
Cert. of Participation 2002 Series A Reserve Fund
687,4t4.t5
Cert. Of Participation 2002 Series A Interest Fund
109,48
Celt. Of Participation 2002 Series A COI Fund
0.00
Total Restricted Funds: $1,455,368,01 $153,495.51
$1,000.69
$270,848.61
Nmel
202.02
254,968.48
Note 2
3.18
64,511.01
Note 3
0,45
92,770.04
239,448.09
Note 4
549.27
179.39
687,784.03
Note4
0.03
109.51
Nu1e4
0.0a
0.00
0.00
NDte4
$1,755.64 $92,949.43 $1,517,669.73
These accounts are not part of the Treasurers fund balances reported elsewhere in this report, as they are for separate and distinct
entities.
Note 1: This account include redemption accounts Set op for the repayment of interest and principal au outstanding
bond coupons for Parking Assessment Disuict'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 ]case payments should the Town not make payment.
Note 3: The lease payment hind receives the lease payments from the Town monthly for the lease of Lot 4. It holds the fiords until
payment% 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 finds which will he expended over the
next few years. restive funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments
and initial dclivory costs.
Page 3
Town of Los Gatos
Statement of Interest Earned
October 31, 2008
Current
Fiscal
Month
Year to Date
Interest received from Investments
$334,088.99
$1,048,255.73
Add: Interest accrued at end of period (see page 5)
545,591.97
545,591.97
Less: Interest accrued at beginning of period
{672,372.24)
(715,999.95)
Interest earned on investments
$207,308.72
$877,847.75
Interest by Month
July 2008
225,065.95
August 2,008
233,228.31
September 2008
212,244,77
October 2008
207,308.72
November 2008
December 2008
January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
877,847.75
Page 4
Town of Los Gatos
Inact
ive Deposits by Institution
Market to Cost Position Report
October 31, 2008
Deposit
Amortized
Maturity
Days
Days to
Days
Yield to
Interest
Interest
Interest
Institution
Security
Dale
Cost
Date
Elapsed
Maturity
Invested
Maturity
Earned
Received
Acemed
FHLNIC
Coupon Note
07107105
296,403.00
01/12109
1212
73
1285
4.313%
42,449.42
35,682,29
6,767.13
USTreasury
Note
07119106
738,281.25
02/15109
835
107
942
5.157%
87,098.88
70,017.27
17,081.61
FHLB
Coupon Note
05112106
1,498,035.00
03113!09
903
133
1036
5.298%
196,349.05
183,968.75
12,380.30
USTreasury
Note
05115/06
1,992,343.75
05/15109
900
196
1096
5.014%
246,319.19
195,000.00
51,319.19
FHLB
Coupon Note
06/15/06
1,493,400.00
06112109
869
224
1093
5,226%
185,81 1.45
156,843.75
28,967.70
FFCB
Coupon Note
07119106
723,562.50
07117109
835
259
1094
5.40817.
89,517.17
61,703.12
27,814.05
FHLMC
Coupon Note
06117/05
300,198.00
07/30109
1232
272
1504
4.359%
44,168.49
40,942.71
3,225.78
F13LMC
Coupon Note
08/01/05
298,332.00
07/30109
1 187
272
1459
4.527%
43,920,59
39,338.54
4,582.05
USTreasury
Note
06102108
1,537,617,20
07131109
151
273
424
2.426%
15,432.03
11,244.85
4,187.18
ITCB
Coupon Note
04102108
2,010,826.00
08104109
212
277
489
2.286%
26,698.84
18,300.00
8,398.84
USTreasury
Note
03125108
1,024,062,50
09115/09
220
319
539
1.7(0%
10,548.69
15,957.88
(5,409.19)
USTreasury
Note
11117106
748 066.41
11/15/09
714
380
1094
4.734%
69,274.56
51,839.61
17,434.95
USTreasury
Note
06/02108
1,514,941.41
12/31/09
151
426
577
2.602%
16,307,49
3,750.00
12,557.49
FHLMC
Coupon Note
06114105
299,331.00
01125/10
1235
451
1686
4.431%
44,877.38
40,869.79
4,007.59
MI, Corp
Corporate Note
04110107
976,150.00
02/08/10
570
465
1035
5.165%
78,735.19
56,430.56
22,304.63
USTreasury
Note
06124/08
739.921,88
020-8/10
129
485
614
2.819%
7.371.87
2.771.74
4,600.13
USTreasury
Note
10/19/06
976,406.25
04115/10
7,13
531
1274
4.744%
94.291.20
79,560.44
14,730.76
Fl-ILB
Coupon Note
08/22106
1,507.665M
06/11/10
801
588
1389
4.957%
164,007.39
135,750.00
28,257.39
FHLB
Coupon Note
01112107
1,487,205.00
08110/l0
658
648
1306
4.960%n
132,979,76
111,233.33
21,746.43
FFCB(2)
Coopoa Note
09115108
1,500,000,00
09115/10
46
684
730
3.300%
6,238.36
6,238.36
USTreastuy
Note
05131107
737,226.56
10115/10
5t9
714
1233
4.801%
50,327.71
43,806.35
6,521.36
FFCB
Coupon Note
12/07107
2,032,140.00
11/08/10
329
738
1067
3.715%
68,048.02
36,072,22
31,975.80
FH1-MC(3)
Coupon Note
04124108
1,008,560.00
12/24/10
190
784
974
4,007%
21,036.90
7,129.17
13,907.73
FFCB
Coupon Note
01118107
756,922.50
01118/11
652
809
1461
3.175%
42,928.91
13,125.00
29,803.91
FPCB
Coupon Note
11128107
2,062,000.00
0211WI1
338
840
1178
3.840%
73,323.59
70,416.67
2,906.92
FNMA
Discount Note
09129106
1,516,485.00
04/15/11
763
896
1659
4.874%
154,509.55
157,166.67
(2,657.12)
FHLMC(4)
Coupon Note
12128106
1,522,350.00
07/20/11
673
992
1665
53759a
150,874.27
134,645.83
16,228.44
USTreasury
Note
10119106
990,078.13
09130111
743
1064
1807
4,721%
95,147.95
97,651.10
7,496.85
l-TCB
Coupon Note
12112/07
2,025,080.00
1 1/21111
324
1116
1440
4.000%
71,904.21
38,183.33
33,720.88
FFCB
Coupon Note
02122107
986,080.00
12/08111
617
1 333
1750
4.959%
82.660.60
59,868.06
22,792.54
1-11LB
Coupon Note
05109/07
1,509,255.00
03/09112
541
1225
1766
4.743%
106,101.16
100,000.00
6,101.16
FFILB
Coupon Note
11/29107
2,038.360.00
08115/12
337
1384
1721
4.170%
78,479.09
65.77738
12,701.31
GE
CorpoiateNote
01116108
1,542,165.00
10/19112
289
1449
1738
4.587%o
56,009.87
59,718,75
(3,708.88)
FNMA(1)
Coupop Note
02121108
1260,300.00
01102113
253
1524
1777
4.562%
39.852.62
21,605.90
18.246.72
Subtot a I
41,64 9,744.34
Union MM
848,645.81
30
30
2.13%
1,485.71
1,485.71
Purchased Interest
LAW
NIA
0960108
25,496,040.12
12131/08
3l
61
92
2.71°/a
56,876.26
56,876.26
$67,994,430.27
453
3.62%n
$2,751,963.43
$2,206,371.46
$545,591.97
Maturity Protile
Amount
Percent
0-1 year
$38,257,741.13
56.271/.
l-2 years
$10,486,913.51
15.42%
2-3 years
$9,888,535.63
14.54%
3-5 years
$9,361,240.00
43.77%
$67,994,430.27
100.00%u
tNlarkel to C
ost Position Report
Amotized
Market
Unrealized
Source:
Treasury and Agency Obligat
ions - Union Ban
k of California
Institution
Cost
Value*
Gain (Loss)
LAIF balances per Local Agency Itives
unent fund mont
hly statement.
Union Bank Assets
$41,649,744.34
$42,095,217.00
445,472,66
Union MM
848,645.81
848,645.81
0.00
Iurchased Int
erest
0.00
0.00
0.00
LAW
25,496,040.12
25,496,040.12
0.00
Totals:
$67,994,430.27
$68,439,902,93
$445,472.66
(1 ) Callable once on 112109
(2) Callable once on 9115109
(3) Callable once on 12124108
(4) Callablc once on 7120109
page 5
O
o
~ O l+~ O Vii O N O U O lJi~
O O O O O O O O O
O O O O O O O o o O
P O O a o d d o p d
O
May-97 -
P O O O 'O O O O O O O
P O O O O O O O O O O
O O O O O d d d d P P
Aug-97
Nnv-97
I
Feb-98 -
May-98
Aug-98 -
Nov-98 -
' - - -
Feb-99
N.Suy-99 -
- "
Aug-99
Nov-99
Feb-00 -
-
May-Off
_-_1
Aug-OD
Nov-00
May-O I
r s= _ - - - _
_
m
Feb-02
-T-,
r,_
i~w
_
May-02
`
- -
Aug-02
~
- -
_
-
Nov-02
_
-
-
P
Feb-03
_
y
Muy-0-3
Aug-03
Nov-03
- - '
F•eb-O4
- ~ .
May-04
Aug-04 -
- -
Nov-04
Feb-05
May-OS -
_
Nov-05
- -
Feb-06 -
t" _ -
May-06
- - -_r ~•=ri..-
Aug-06
' -
Nov-O6
Feb-07
May-07
Aug-07
- - :.-sue..
= :
Nov-07
-s:n v- .
S~tXt.RtY r ~:•••S4Y.„S=~yT<'~_--°3.
'
-
-
Feb-08 -
.....v.~..`~..••y.Z
sir-~__~y~T[.
May-08