FY 2014/15 Quarterly Investment Report°s'cA`p COUNCIL AGENDA REPORT
DATE: OCTOBER 24, 2014
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 11/04/14
ITEM NO: '1
SUBJECT: FY 2014/15 QUARTERLY INVESTMENT REPORT (JULY THROUGH
SEPTEMBER 2014)
RECOMMENDATION:
Accept the attached First Quarter Investment Report for FY 2014/15,
DISCUSSION:
Attached for your consideration is the First Quarter Investment Report for FY 2014/15.
The Town is still out performing the Local Agency Investment Fund (LAIF) and Treasuries in general
and therefore continues to replace mature or called investments with similar investments with respect
to maturity and credit quality. Overall, the Town's rate of return is up slightly over a year ago and the
total Treasurer's funds have increased about $1,625,275. Since staff is expecting rates to begin to rise
later this year or early next year, the Town is limiting its purchase of longer -term securities (five -year
maximum allowed under state law).
FISCAL IMPACT:
None
Attachment:
First Quarter Investment Report for FY 2014/15 (July through September 2014)
PREPARED BY: STE
Fina4&Admi strative Services Director /Town Treasurer
Reviewed by: lZ rAssistant Town Manager
Attorney
1V:U 1AANUI;ACUUNUILVUOUneil Stan ReportAnvestment Report \Treasurer's Repon -Q1 2014 2015 Director's cut.doe
THIS PAGE
INTENTIONALLY
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Town of Los Gatos
Quarterly Investment Report
(Month Ended September 30, 2014)
Prepared by
Linda L. Speicher, Project Manage
10/24/]4
Town of Los Gatos
Summary Investment Information
September 30, 2014
Weighted Average Portfolio Yield: 0.68% Weighted Average Maturity (days)
This Month Last Month One year ago
Portfolio Balance $61,315,201 $61,094,546 $59,688,925
Benchmarks/ References:
Town's Average Yield
0.68%
0.68%
0.66%
LAIF Yield for month
0.26%
0.26%
0.26%
3 me. Treasury
0.02%
0.03%
0.01%
6 me. Treasury
0.04%
0.05%
0.04%
2 yr. Treasury
0.57%
0.51%
0.35%
5 yr. Treasury (most recent)
1.76%
1.61%
1.41%
Prime rate
3.25%
3.25%
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr. Fannie Mae (08/25/14) 1.12%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
703
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 I
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
September 30, 2014
74,000,000
Month
Fund Balances - Beginning of Month/Period
$61,094,546.39
Receipts
2,961,372.00
Disbursements
(2,740,717.15)
Fund Balances - End of Month/Period
$61,315,201.24
Portfolio Allocation:
BNY MM
$282,103.33
US Govt Agencies & Corp. Bonds
47,633,435.16
Local Agency Investment Fund
4,163,72937
Subtotal - Investments
52,079,267.86
Reconciled Demand Deposit Balances
9,235,93338
Total Treasurei's Fund
$61,315,201.24
Portfolio Investment Allocation
BNY MM
Local Agency Investment Fund 0.54%
7.99%
US Govt Agencies & Corp.
Bonds
91.46%
YTD
$63,367,435.18
71585,906.84
L638,140.781
$61,315201.24
i
Treasurer's Fund Balances
74,000,000
72,000,000
{ 70.000,000
68,000,000
-
66,000,000
x
64,000,000
62.000 000
60000,000
58,000000
56,000,000
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page 2
These accounts are not pan of the Treasurer's Pond balances reported elsewhere in this report, as they are for separate and distinct
entities.
Note 1: This account includes redemption accounts set up for the repayment ofinterest and principal on outstanding
bond coupons for Parking Assessment District T, as well as Reserve Ponds set up as required by the original Bond resolution These funds
will be paid back to the original asscssc s.
Note 4: The three original 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 oflease payments, and a third fund for the disbursement of lease payramts
and initial delivery costs.
Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the
life ofthc COP issue. The CO] Pond was closed in September 2010.
Page 3
Town of Los Gatos
Non- Treasury
Restricted Fund Balances
September 30, 2014
Previous
Ending
Balance Deposits
IZL
Withdrawals
Balance
Non - Treasury Funds:
Downtown Parking District
$287,295.45
$61.85
$287,357.30
Nme l
Con. of Participation 2002 Series A Reserve Fund
686,25824
5.84
5.84
686,258.24
Nom4
Cart. Of Participation 2002 Ser A Lease Pymt Fund
0.00
0.00
1100
0.00
No, 4
Cen, of Participation 2002 Series A Const Fund
38,233 38
0,00
38,233.38
N.,,4
COP 2010 Library Reserve Fund
1,277,062.50
0.00
1,277,062,50
N...5
COP 2010 Library Lease Fund
0.00
0.00
0.00
rvme 5
COP 2010 Library ACQ Construction Fund
0.00
OAO
0.00
Nme 5
COP 2010 Library CO] Fund
0.00
0.00
0.00
Note 5
COP 2010 Library Good Faith
0.00
0.00
0.00
NmU, 5
Total Restricted Funds:
$2.288,849.57 $0.00
$67.69
$5.84
$2.288,911.42
These accounts are not pan of the Treasurer's Pond balances reported elsewhere in this report, as they are for separate and distinct
entities.
Note 1: This account includes redemption accounts set up for the repayment ofinterest and principal on outstanding
bond coupons for Parking Assessment District T, as well as Reserve Ponds set up as required by the original Bond resolution These funds
will be paid back to the original asscssc s.
Note 4: The three original 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 oflease payments, and a third fund for the disbursement of lease payramts
and initial delivery costs.
Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the
life ofthc COP issue. The CO] Pond was closed in September 2010.
Page 3
Town of Los Gatos
Statement of interest Earned
September 30, 2014
Interest by Month
July 2014
Current
Fiscal
30,999.80
Month
Year to Date
Interest received from Investments
133,190.32
161,921.95
Interest accrued/(prepaid) at end of period (see page 5)
- 238,599.91
- 238,599.91
Interest accrued/(prepaid) at beginning of period
- 134,533.29
- 166,819.70
Interest earned on investments
$29,123.70
$90,141.74
Interest by Month
July 2014
$30,018.24
August 2014
30,999.80
September 2014
29, 123.70
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$90,141.74
Page 4
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Town of Los Gatos
Quarterly Investment Report
(Month Ended August 31, 2014)
Prepared by
Linda L. Speicher, Project Manager
0/22/14
Town of Los Gatos
Summary Investment Information
August 31, 2014
Weighted Average Portfolio Yield:
0.68%
Weighted Average Maturity (days)
0 1 year
This Month
Last Month
One year ago
Portfolio Balance
$61,094,245
$61,064,959
$61,137,355
Benchmarks/ References:
X
Town's Average Yield
0.68%
0.68%
0.66%
LAIF Yield for month
0.26%
0.26%
0.27%
3 me. Treasury
0.03%
0.03%
0.04%
6 mo. Treasury
0.05%
0.06%
0.07%
2 yr. Treasury
0.51%
0.53%
0.39%
5 yr. Treasury (most recent)
1.61%
1.70%
1.41%
Pri me rate
3.25%
3.25%
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr. Fannie Mae (08/25/14) 1.12%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
735
Portfolio Maturity Profile
0 1 year
•.260N
X
f:
2 years
I8/
2 - 3 years
23%
i
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
74,000,000
72,000.000
70.000,000
68.000,000
66,000,000
64,000,000
62.000.000
60,000,000
58,000.000
56.000,000
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
August 31, 2014
Month
Fund Balances- Beginning of Month /Period
$61,064,959.44
Receipts
2,647,696.50
Disbursements
(2,617,995.98)
Fund Balances - End of Month/Period
$61,094,659.96
Portfolio Allocation:
BNY MM
$145,872.07
US Govt Agencies & Corp. Bonds
47,636,549.91
Local Agency Investment Fund
4,163.729.37
Subtotal - Investments
51,946,151.35
Reconciled Demand Deposit Balances
9,148,093.66
Total Treasurer's Fund
$61,094,245.01
Portfolio Investment Allocation
BNY MM
Local Agency lovesurneot Fund 0,28
8.02%
US Govt Agencies & Corp.
Bonds
91.70
Treasurer's Fund Balances
YTD
$63,367,435.18
4,624,648.41
(6,897,423.63)
$61,094,659.96
C u C .o
c Z
page 2
These accounts are not part of the Treasurer's fund balances repotted elsewhere in this report, as they are for separate and distinct
cone$.
Note 1: This account includes 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. These funds
will be paid back to the original assessees.
Note 4: The three original funds for the Certificates ofPanieipation 2002 Series A consist of construction Ponds which will be expended over the
next few years, reserve funds which will guum uce the payment offense payments, and a third fund for the disbursement of ]ease payments
and initial delivery costs.
Note 5: The 2010 COP Fonds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the
life of the COP issue. The COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Non - Treasury
Restricted Fund Balances
August 31, 2014
Previous
Ending
Balance Deposits
Interest
Withdrawals
Balance
Non - Treasury Funds:
Downtown Parking District
$287,233.62
$61.83
$287.295.45
Nou I
Cen. of Participation 2002 Series A Reserve Fund
686,25824
5.85
5.85
686,25824
Noce a
Cen. Of Participation 2002 Set A Lease Pymt Fund
0.00
0.00
0.00
0.00
Non 4
Cen. of Participation 2002 Series A Const. Fund
38,21272
20.66
38,23338
Non, 4
COP 2010 Library Reserve Fund
1,277,062.50
0.01
0.01
1,277,062.50
Notes
COP 2010 Library Lease Fund
1,470,738.75
0.00
1,470,738.75
0.00
Notes
COP 2010 Library ACQ Construction Fund
0.00
0.00
0.00
Nou 5
COP 2010 Library COT Fund
0.00
0.00
0.00
Nou 5
COP 2010 Library Good Faith
0 00
0.00
0.00
No.5
'Total Restricted Funds:
$3,759,505.83 $000
$88.35
$1470.744.61
$2,288,849.57
These accounts are not part of the Treasurer's fund balances repotted elsewhere in this report, as they are for separate and distinct
cone$.
Note 1: This account includes 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. These funds
will be paid back to the original assessees.
Note 4: The three original funds for the Certificates ofPanieipation 2002 Series A consist of construction Ponds which will be expended over the
next few years, reserve funds which will guum uce the payment offense payments, and a third fund for the disbursement of ]ease payments
and initial delivery costs.
Note 5: The 2010 COP Fonds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the
life of the COP issue. The COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Statement of interest Earned
August 31, 2014
Interest by Month
July 2014 $30,018.24
August 2014 30,999.80
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$61,018.04
Page 4
Current
Fiscal
Month
Year to Date
Interest received fi,om Investments
1,550.95
29,931.63
Interest accrued /(prepaid) at end of period (see page 5)
- 134,533.29
- 134,533.29
Interest accrued/(prepaid) at beginning of period
- 163,982.14
- 166,819.70
Interest earned on investments
$30,999.80
$62,218.04
Interest by Month
July 2014 $30,018.24
August 2014 30,999.80
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$61,018.04
Page 4
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Town of Los Gatos
Quarterly Investment Report
(Month Ended July 31, 2014)
Prepared by
Linda L. Speicher, Project Manager
10/22/14
Town of Los Gatos
Summary Investment Information
July 31, 2014
Weighted Average Portfolio Yield: 0.68%
This Month Last Month
Portfolio Balance $61,064,959 $63,367,435
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
Weighted Average Maturity (days) 767
One year ago
$61,509,295
0.68%
0.68%
0.65%
0.23%
0.23%
0.27%
0.03%
0.04%
0.03%
0.56%
0.07%
0.07%
0.53%
0.51%
0.34%
1.70%
1.67%
1.41%
3.25%
3.25%
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
3 yr. Freddie Mac (03/03/14) 0.87%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
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
74,000,000
72,000,000
70,000,000
68.000,000
66,000,000
64,000,000
62,000,000
60,000,000
58,000,000
56,000,000
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
July 31, 2014
Month
Fund Balances- Beginning ofMonth/Period
$63,367,435.18
Receipts
1,976,838.34
Disbursements
(4,279,427.65)
Fund Balances- End ofMomb/Period
$61,064,845.87
Portfolio Allocation:
BNY MM
$120,497.07
US Govt Agencies & Corp. Bonds
47,660,454.91
Local Agency Investment Fund
4,163,729.37
Subtotal - Investments
51,944,681.35
Reconciled Demand Deposit Balances
9,120,278.09
Total Treasurer's Fund
$61,064,959.44
Portfolio Investment Allocation
BNY MM
Local Agency Investment Fund 0.23%
8.02 %
US Govt Agencies & Corp.
Bonds
9175%
Treasurer's Fund Balances
YTD
$63,367,435.18
1,976,838.34
(4,279,427.65)
$61,064,845.87
M r. :2 O_ C M z V C
page 2
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 includes redemption accounts set up for the repayment of interest and principal on outstanding
bond coupons for Parking Assessment District 7', as well as Reserve Funds set up as required by the original Bond resolution. These Ponds
will be paid back to the original assessees.
Note 4: The three original funds for the Certificates of Participation 2002 Series A consistofConstruction Ponds 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.
Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment Pond for the
life of the COP issue. l'he COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Non - Treasury
Restricted Fund Balances
July 31, 2014
Previous
Ending
Balance
DDM.s_ts
Interest
Withdrawals
Balance
Non - Treasury Funds:
Downtown Parking District
$287,173.79
$59.83
$287,233.62
Nme t
Can. of Participation 2002 Series A Reserve Fund
686,25814
5.66
5.66
686,258.24
Nom 4
Cen. Of Participation 2002 Ser A Lease Tyra Fund
0.00
0.00
0.00
0.00
Nm<4
Cen. ofPanieipation 2002 Series A Const, Fund
38,212.72
0.00
38,212.72
Nom4
COP 2010 Library Reserve Fund
1,277,062.50
0.01
0.01
1 277,062.50
N..5
COP 2010 Library Lease Fund
0.00
1,470,738.75
0.00
1,470,738.75
Nme5
COP 2010 Library ACQ Construction Fund
0.00
0.00
000
Nme5
COP 2010 Library CO] Fund
0.00
0.00
0.00
Non 5
COP 2010 Library Good Faith
0.00
0.00
0.00
Nme5
Toed Restricted Funds:
52.288,70725
$1,470,738.75
$65.50
$5.67
S3,759,505,83
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 includes redemption accounts set up for the repayment of interest and principal on outstanding
bond coupons for Parking Assessment District 7', as well as Reserve Funds set up as required by the original Bond resolution. These Ponds
will be paid back to the original assessees.
Note 4: The three original funds for the Certificates of Participation 2002 Series A consistofConstruction Ponds 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.
Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment Pond for the
life of the COP issue. l'he COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Statement of Interest Earned
July 31, 2014
Interest by Month
July 2014 $30,018.24
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$30,018.24
Page 4
Current
Fiscal
Month
Year to Date
Interest received from Investments
27,180.68
27,180.68
Interest accrued/(prepaid) at end of period (see page 5)
- 163,982.14
- 163,982.14
Interest accrued/(prepaid) at beginning of period
- 166,819.70
- 166,819.70
Interest earned on investments
$30,018.24
$30,018.24
Interest by Month
July 2014 $30,018.24
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$30,018.24
Page 4
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