FY 2014/15 Quarterly Investment ReportMEETING DATE: 02/17/15
ITEM NO:
cos cases COUNCIL AGENDA REPORT
DATE: FEBRUARY 9, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: FY 2014/15 QUARTERLY INVESTMENT REPORT (OCTOBER THROUGH
DECEMBER 2014)
RECOMMENDATION:
Accept the attached Second Quarter Investment Report for FY 2014/15.
DISCUSSION:
Attached for your consideration is the Second Quarter Investment Report for FY 2014/15.
The Town is still outperforming the Local Agency I vestment Fund (LAIF) and Treasuries in general
and therefore continues to replace mature or callednvestments with similar investments with respect to
maturity and credit quality. Rates for investments purchased in the current quarter were higher than the
market average, and thus the Town's rate of return increased 7 basis points (.07 1/o).
Of note is the maturation of the 1988 Parking Assessment Reserve Certificate of Deposit
(approximately $287K). Upon final audit and reconciliation of all remaining close -out costs because
the reserve was used for the last year of debt service, an early estimate of approximately $180K of this
reserve is expected to be available for pro -rata distribution to the original property owners who were
assessed for the parking improvements. Staff expects to complete this process within the next few
months.
FISCAL IMPACT:
None
Attachment:
Second Quarter Investment Report for FY 2014/15 (October through December 2014)
PREPARED BY: STEVIE
Finance & Administrative Services Director /Town Treasurer
Reviewed by:
Assistant Town Manager
NATWStaff Reports\Through fiseal 13 14 \Treasurer's Report - Q2 2014 2015.doc
Town Attorney
THIS PAGE
INTENTIONALLY
LEFT BLANK
Town of Los Gatos
Quarterly Investment Report
(Month Ended December 31, 2014) n/
Prepared by / /`/—,�
Linda L. Speicher, Project Manager 61p(
02/08/15
Town of Los Gatos
Summary Investment Information
December 31, 2014
Weighted Average Portfolio Yield: 0.75%
This Month Last Month
Portfolio Balance $62,475,531 $60,945,793
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) 623
One year aeo
$61,233,560
0.75%
0.68%
0.65%
0.27%
0.26%
0.27%
0.03%
0.01%
0.05%
0.12%
0.07%
0.08%
0.68%
0.52%
0.32%
1.70%
1.58%
1.30%
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.
Portfolio Maturity Profde
3 - 5 years
aC tiff +i., -
_ 0 - 1 yea,.
35
2 - 3 years
30%
I - 2 years
18%
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
Portfolio Allocation
BNY MM
US Govt Agencies & Corp. Bonds
Local Agency Investment Fund
Subtotal - Investments
Reconciled Demand Deposit Balances
Total Treasurer's Fund
Month
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
$60,945,792.55
December 31, 2014
Fund Balances -
Beginning of Month/Period
Receipts
18,179,554.11
Disbursements
Fund Balances -
End of Month/Period
Portfolio Allocation
BNY MM
US Govt Agencies & Corp. Bonds
Local Agency Investment Fund
Subtotal - Investments
Reconciled Demand Deposit Balances
Total Treasurer's Fund
Month
YTD
$60,945,792.55
$63,367,435.18
4,476,052.96
18,179,554.11
(2,946,314.50)
(19.071,458.28)
$62,475,531.01
$62,475,531.01
$193,720.03
47,827,108.26
4.166.266.37
52, 187,094.66
10.288.436.35
$62,475,531.01
Portfolio Investment Allocation
BNY MM
Local Agency lnvesanent Fund 0.37%
7.98%
US Govt Agencies & Corp.
Bonds
91.65%
page 2
Town of Las Gatos
Non - Treasury Restricted Fund Balances
December31,2014
Non - Treasury Funds:
Downtown Parking District
Cen. of Participation 2002 Series A Reserve Fund
Cen. Of Participation 2002 Set A Lease Pymt Fund
Cm. of Participation 2002 Series A Const. Fund
COP 2010 Library Reserve Fund
COP 2010 Library Lease Fund
COP 2010 Library ACQ Construction Fund
COP 2010 Library COI Fund
COP 2010library Good Faith
Total Restricted Funds:
Previous
Ending
lance Deoosits
Interest
Withdrawals
Bala
$287,479.04
$59.89
$287,538.93
$0.00
Note t
686,258.24
0.00
686,258.24
Note
0.00
0.00
0.00
Note
38,256.21
0.00
38,256.21
Note4
1,277,062.50
0.00
1,277,062.50
Notes
0.00
0.00
0.00
Notes
0.00
0.00
0.00
Notes
0.00
0.00
0.00
Note 5
0.00
0.00
000
Note 5
$2,289,055.99 $0.00
$59_89
$287,538.93
$2,001,576.95
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 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 Band resolution. These Ponds
will be paid back to the original assessees. NOTE: Funds were returned to the Town in December 2014.
Nate 4: The three original funds for the Certificates of Participation 2002 Series A consist ofcomtruction funds which will be expended over the
next few years, reserve Ponds 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 constmction, 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
December 31, 2014
Interest by Month
July 2014
Current
Fiscal
30,999.80
Month
Year to Date
Interest received from Investments
24,847.31
269,984.54
Interest accrued/(prepaid) at end of period (see page 5)
- 253,400.38
- 253,400.38
Interest accrued/(prepaid) at beginning of period
- 261,964.24
- 166,819.70
Interest earned on investments
$33,411.17
$183,403.86
Interest by Month
July 2014
$30,018.24
August 2014
30,999.80
September 2014
29,123.70
October 2014
30,198.98
November 2014
29,651.97
December 2014
33,411.17
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$183,403.86
Page 4
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Town of Los Gatos
Quarterly Investment Report
(Month Ended November 30, 2014)
Prepared by
Linda L. Speicher, Project Manager
02/05/15
Town of Los Gatos
Summary Investment Information
November 30, 2014
Weighted Average Portfolio Yield: 0.75%
This Month Last Month
Portfolio Balance $60,946,341 $60,620,167
Benchmarks/ References:
Town's Average Yield
LAIF Yield for month
3 mo. Treasury
6 me. Treasury
2 yr. Treasury
5 yr. Treasury (most recent)
Prime rate
Weighted Average Maturity (days) 655
One year ago
$60,553,613
0.75%
0.68%
0.66%
0.26%
0.26%
0.27%
0.01%
0.01%
0.08%
0.07%
0.05%
0.11%
0.52%
0.40%
0.30%
1.58%
1.53%
1.34%
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.
Portfolio Maturity Profile
3 5 years
0 - 1 year
^%(4£ �• °t 4i
,33%
f.4
2-3y
26%
- 2 Yeats
20%
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
$157,907.50
Portfolio Allocation & Treasurer's Fund Balances
47,838,158.26
November 30, 2014
4,166,266.37
Subtotal - Investments -
Month
Fund Balances - Beginning of Month/Period
$60,620,166.81
Receipts
3,159,532.27
Disbursements
(2,833,906.53)
Fund Balances - End of Month/Period
$60,945,792.55
Portfolio Allocation
BNY MM
$157,907.50
US Govt Agencies & Corp. Bonds
47,838,158.26
Local Agency Investment Fund
4,166,266.37
Subtotal - Investments -
52,162,332.13
Reconciled Demand Deposit Balances
8,783,460.42
Total Treasurer's Fund $60,945,792.55
Portfolio Investment Allocation
BNY MM
Local Agency Investment Fund 0.30%
7.99%
US Govt Agencies & Corp.
Bonds
91.71%
YTD
$63,367,435.18
13,703,501.15
(16.125,143.78)
$60,945,792.55
page 2
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Town of Los Cates
Nan - Treasury Restricted Fund Balances
November 30,2014
Non - Treasury Funds:
Downtown Parking District
Cert. of Participation 2002 Series A Reserve Fund
Cert. Of Participation 2002 Set A lease Pymt Fond
Cert. of Participation 2002 Series A Const, Fond
COP 2010 Library Reserve Fund
COP 2010 Library Lease Fund
COP 2010 Library ACQ Construction Fund
COP 2010 Library COI Fund
COP 2010 Library Good Faith
Total Restricted Funds:
Previous
Ending
Bala. Deago ts
teresl
Withdrawals
Balance
$287,417.17
$61.87
$287,479.04
Note I
686,258.24
5.85
5.85
686,258.24
Note4
0.00
0.00
0.00
0.00
Non4
38,256.21
0.00
38,256.21
Nwe4
1,277,062.50
0.01
0.01
1,277,062.50
Notes
0.00
0.00
0.00
Notes
0.00
0.00
0.00
Not.5
0.00
(100
0.00
Nate5
0.00
0.00
0.00
Non 5
$2288,994.12 $0.00
$67_73
$5.86
$2,289,055.99
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 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 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.
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 wes closed in September 2010.
Page 3
Town of Los Gatos
Statement of Interest Earned
November 30, 2014
Interest by Month
July 2014
Current
Fiscal
30,999.80
Month
Year to Date
Interest received from Investments
20,853.92
245,137.23
Interest accrued/(prepaid) at end of period (see page 5)
- 261,964.24
- 261,964.24
Interest accrued/(prepaid) at beginning of period
- 270,762.29
- 166,819.70
Interest earned on investments
$29,651.97
$149,992.69
Interest by Month
July 2014
$30,018.24
August 2014
30,999.80
September 2014
29,123.70
October 2014
30,198.98
November 2014
29,651.97
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
$149,992.69
Page 4
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Town of Los Gatos
Quarterly Investment Report
(Month Ended October 31, 2014)
Prepared by
Linda L. Speicher, Project Manager
02/03/15
Town of Los Gatos
Summary Investment Information
October 31, 2014
Weighted Average Portfolio Yield: 0.69%
This Month Last Month
Portfolio Balance $60,620,167 $61,315,201
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) 631
One year ago
$60,167,771
0.69%
0.68%
0.66%
0.26%
0.26%
0.27%
0.01%
0.02%
0.05%
0.05%
0.04%
0.08%
0.40%
0.57%
0.30%
1.53%
1.76%
1.30%
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.
Portfolio Maturity Profile
3 - 5 years
0 - 1 year
36%
2 - 3 years
31%
4i
2 years
16%
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, 2014
Fund Balances - Beginning of Month/Period
Receipts
Disbursements
Fund Balances - End of Month/Period
Portfolio Allocation
BNY MM
US Govt Agencies & Corp. Bonds
Local Agency investment Fund
Subtotal - investments
Reconciled Demand Deposit Balances
Total Treasurers Fund
Month
YTD
$61,315,201.24
$63,367,435.18
2,958,062.04
10,543,968.88
(3,653,096.47)
(13,291,237.251
$60,620,166.81
$60,620,166.81
$341,457.50
47,633,826.51
4,166,266.37
52,141,550.38
8,478,616.43
$60,620,166.81
Portfolio Investment Allocation
BNY MM
Local Agency Investment Fund 0.65%
7.99%
US Govt Agencies & Corp.
Bonds
Treasurer's Fund Balances
74,000,000
72,000,000 .. ..
74000,000
68.000.000 ..:..
66,000,000
64,000,000
62,000.000 -
- -''
60.004000
58.000,000
56.000,000
m 6 L W C pp 6
z
page 2
These accounts are not pan of the Treasurer's fund balances mponed 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'3', 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 consist ofconstmgion 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.
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 of the COP issue. The COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Non - Treasury
Restricted Fund Balances
October 31, 2014
Previous
Ending
Balance g
Interest
Withdrawals
Balance
Non - Treasury Funds:
Downtown Parking District
$287,357.30
$59.87
$287,417.17
Nare t
Cent. of Participation 2002 Series A Reserve Fund
686158.24
5.66
5.66
686,258.24
Nore 4
Cart. Of Participation 2002 Set A Lease Pymt Fund
0.00
0.00
0.00
0.00
Nore 4
Cen. of Participation 2002 Series A Const. Fund
38,233.38
22.83
38,256.21
Note 4
COP 2010 Library Reserve Fund
1177,062.50
0.00
1,277,062.50
Note 5
COP 2010 U-brary, Lease Fund
0.00
0.00
0.00
Note 3
COP 2010 Library ACQ Construction Fund
0.00
0.00
0.00
Nore 5
COP 2010 Libmry CO) Fund
0.00
0.00
0.00
Note 5
COP 2010 Library Good Faith
0.00
0.00
0.00
Nore s
Total Restricted Funds:
$2,288,911.42 $0.00
$88.36
$5.66
$2188,994.12
These accounts are not pan of the Treasurer's fund balances mponed 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'3', 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 consist ofconstmgion 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.
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 of the COP issue. The COI fund was closed in September 2010.
Page 3
Interest received from Investments
Interest accrued/(prepaid) at end of period (see page 5)
Interest accrued/(prepaid) at beginning of period
Interest earned on investments
Town of Los Gatos
Statement of Interest Earned
October 31, 2014
Interest by Month
July 2014
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015
April 2015
May 2015
June 2015
Page 4
Current Fiscal
Month Year to Date
62,361.36 224,283.31
- 270,762.29 - 270,762.29
- 238,599.91 - 166,819.70
$30,198.98 $120,340.72
$30,018.24
30,999.80
29,123.70
30,198.98
$120,340.72
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