Staff ReportMEETING DATE: 06/16/15
ITEM NO:
d�oS GASOS COUNCIL AGENDA REPORT
DATE: MAY 9, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LES WHITE, INTERIM TOWN MANAG -- m—
SUBJECT: FY 2014/15 QUARTERLY INVESTMENT REPORT (JANUARY THROUGH
MARCH 2015)
RECOMMENDATION:
Accept the attached Third Quarter Investment Report for FY 2014/15.
DISCUSSION:
Attached for your consideration is the Third Quarter Investment Report for FY 2014/15.
The Town is still outperforming 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. Rates for investments purchased in the current quarter were higher than the
market average, and thus the Town's rate of return increased 4 basis points (.04 %).
Due to expectations of a Federal Reserve interest rate increase sometime in late calendar year 2015,
staff is staying short -term (two years or less in maturity) for its new investments as the rewards for
longer term investments in the three to five year maturity do not have adequate spreads to justify the
risk of holding longer term maturities.
FISCAL IMPACT:
None
Attachment:
Third Quarter Investment Report for FY 2014/15 (January through March 2015)
PREPARED BY: STEVE C
Finance & Administrati e Services Director /Town Treasurer
Reviewed by Assistant Town Manager own Attorney � � Finance
C:AUsm-sconway'Dmpbox \Treasurers Report - Q3 20142015.doc
Town of Los Gatos
Quarterly Investment Report
(Month Ended March 31, 2015)
Prepared by
Stephen Conway, Director of Finance
05/23/15
Town of Los Gatos
Summary Investment Information
March 31, 2015
Weighted Average Portfolio Yield: 0.79%
This Month Last Month
Portfolio Balance $65,756,907 $66,335,077
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) 614
One year ago
$62,351,176
0.79%
0.79%
0.67%
0.27%
0.27%
0.24%
0.03%
0.02%
0.05%
0.14%
0.07%
0.07%
0.56%
0.58%
0.45%
1.37%
1.44%
1.70%
3.25%
3.25%
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
2 yr. Freddie Mac (05/29/15) 0.75%
Portfolio Maturity Profile
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
l /4,W1
70,00(,
68,00(:
'. 66.001:
64001:
62,000
60,000
58,000
56,000
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
March 31, 2015
Month
Fund Balances - Beginning of Month /Period
$66,335,076.57
Receipts
3,194,489.82
Disbursements
(3,772,659.62)
Fund Balances- End of Month /Period
$65,756,906.77
Portfolio Allocation:
BNY MM
$437,790.86
US Govt Agencies & Corp. Bonds
47,656,037.83
Local Agency Investment Fund
L168,935.92
Subtotal - Investments
52,262,764.61
Reconciled Demand Deposit Balances
13.494,142.16
Total I reasurer's Fund
$65,756,906.77
Portfolio Investment Allocation
BNY MM
Local Agency Investment Pond 0.84%
7.98%
US Govt Agencies & Corp.
Bonds
91.19%
Treasurer's Fund Balances
YTD
$63,367,435.18
31,073,822.93
(28 684,351.34)
$65,756,906.77
page
Town of Los Carlos
Von- Treas... Restricted Fund Balances
March 31, 201,5
Previous Ending
Balance Deposits Inreresl Widhdrawals Balance
Non- imasury Foods:
Ceti. of Participation 2002 Series A Reserve Fund
686,256.85
5,29
686,26214
e'me I
Cen.Of Participation 2002 Ser A Lease Pynd Fund
12.86
0.00
12.86
0.00
note I
Cent. of Participation 2002 Series A Const. Fund
38,280 24
0.00
38,28024
n'me I
COP 2010 Idiom Reserve Fund
1.277.064.35
0.02
0.00
1,277,064,37
erne a
Total Restricted Funds:
5200 L614.30 $400
$5.31
$12.86
$2,001.606.75
These account, are not part of the t'reasurer's fund balances reported elsewhere in this report, as they are for separate and distinct
ernitics.
Vote 1: The three original funds for the Cemficntes of Participation 2002 Series A consist of consh t ction funds which will be expended over the
rat few yens, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease poyercot,
and initial del ivory costs.
Vote 2: T1e2010 COI' Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the
life of the COP issnc. The COI fund was closed in September 2010,
Page 3
Interest earned on investments
Interest by Month
July 2014
30018.24
August 2014
30999.8
September 2014
29123.7
October 2014
30198.98
November 2014
29651.97
December 2014
33411.17
January 2015
33458.71
February 2015
34629.04
March 2015
34224.05
April 2015
May 2015
June 2015
$285,715.66
Town of Los Gatos
Statement of Interest Earned
March 31, 2015
Current
Month
34,224.05
Fiscal
Year to Date
$285,715.66
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Town of Los Gatos
Quarterly Investment Report
(Month Ended February 28, 2015)
Prepared by
Linda L. Speicher, Project Manager
05/23/15
Town of Los Gatos
Summary Investment Information
February 28, 2015
Weighted Average Portfolio Yield: 0.79%
This Month Last Month
Portfolio Balance $66,335,077 $66,746,401
Benchmarks/ References:
Town's Average Yield
0.79%
LAIF Yield for month
0.27%
3 mo. Treasury
0.02%
6 me. Treasury
0.07%
2 yr. Treasury
0.58%
5 yr. Treasury (most recent)
1.44%
Prime rate
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
2 yr. Fannie Mae (01/16/15)
0.05%
0.75%
0.27%
0.02%
0.08%
0.59%
1.26%
3.25%
Weighted Average Maturity (days)
One Year ago
$63,447,920
0.66%
0.24%
0.05%
0.08%
0.32%
1.51%
3.25%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
634
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
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
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
$63,367,435.18
February 28, 2015
Fund Balances -
Beginning of Month/Penod
Receipts
$66,335,076.57
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
$66,746,401.26
$63,367,435.18
2,566,360.15
28,879,333.11
(2,977,684.84)
(24,911.691 72)
$66,335,076.57
$67,335,076.57
$243,132.53
47,778,233.26
4,168,935.92
52,190,301.71
14,144,774 86
$66,335,076.57
Portfolio Investment Allocation
BNY MM
Local Agency Investment Fund 0.47%
7.99%
US Govt Agencies & Corp.
Bonds
Treasurer's Fund Balances
page 2
,
Z � u
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: The three original fonds for the Certificates of Participation 2002 Series A consist oferestraction funds which will be expended over the
next tow 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.
None 2: The 2010 COP Funds are all for the Library concoction, reserves to guarantee lease payments, and a lease payment fund for the
lit, of 0te COP issue. The COI Pond was closed in September 2010,
Page 3
Town of Los Gatos
Non- Treasury
Restricted Fund Balances
February 28, 2015
Previous
Ending
Balance Deposits
Interest
Withdrawals
Balance
Non - Treasury Funds:
Can. of Participation 2002 Series A Reserve Fund
686,251.00
5.85
686,256.85
Cert OLParticipatiou 2002 Set A LeasePymt Fund
457,328.86
025
457,316.25
12.86
Nme I
Cert ofParticipatlon 2002 Series A Const, Fund
38,256.21
24.03
Non, I
COP 2010 Library Reserve Fund
1,277,064.35
0.01
0.01
38,280.24
1,277,064.35
Nme t
COP 2010 Library Lease Fund
0.00
0.00
Nme2
COP 2070 Library ACQ Construction Fund
0.00
0.00
0.00
Nme 2
COP 2010 Library COI Fund
0.00
0.00
0.00
Nome
COP 2010 Library Good Faith
0.00
0.00
Nom 2
Total Restricted Funds:
$2,458900.42 $0.00
0.00
$3014
$45731626
0,00
$2,001,614.30
Nme 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: The three original fonds for the Certificates of Participation 2002 Series A consist oferestraction funds which will be expended over the
next tow 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.
None 2: The 2010 COP Funds are all for the Library concoction, reserves to guarantee lease payments, and a lease payment fund for the
lit, of 0te COP issue. The COI Pond was closed in September 2010,
Page 3
Town of Los Gatos
Statement of Interest Earned
February 28, 2015
Interest by Month
July 2014
Current
Fiscal
August 2014
Month
Year to Date
Interest received from Investments
- 6,665.91
273,417.87
Interest accrued/(prepaid) at end of period (see page 5)
- 188,745.96
- 188,745.96
Interest accrued/(prepaid) at beginning of period
- 230,040.91
- 166,819.70
Intel est earned on investments
$34,629.04
$251,491.61
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
33,458.71
February 2015
34,629.04
March 2015
April 2015
May 2015
June 2015
$251,491.61
Page 4
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A
Town of Los Gatos
Quarterly Investment Report
(Month Ended January 31, 2015)
Prepared by
Linda L. Speicher, Project Manager
05/23/15
Town of Los Gatos
Summary Investment Information
January 31, 2015
Weighted Average Portfolio Yield: 0.75%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
2 yr. Fannie Mae (01/16/15) 0.05%
Weighted Average Maturity (days)
One Year ago
$63,944,504
0.66%
0.24%
0.06%
0.07 °%
0.36 °%
1.54%
3.25 °%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
599
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
This Month
Last Month
Portfolio Balance
$66,746,401
$62,475,531
Benchmarks/ References:
Town's Average Yield
0.75%
0.75%
LAIF Yield for month
0.27%
0.27%
3 mo. Treasury
0.02%
0.03%
6 me. Treasury
0.76%
0.12%
2 yr. Treasury
0.59%
0.68%
5 yr. Treasury (most recent)
1.26%
1.70%
Prime rate
3.25%
3.25%
Most recent auctions of
Freddie Mac or Fannie Mae Reference Notes:
2 yr. Fannie Mae (01/16/15) 0.05%
Weighted Average Maturity (days)
One Year ago
$63,944,504
0.66%
0.24%
0.06%
0.07 °%
0.36 °%
1.54%
3.25 °%
Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being.
599
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
64000.000
62,000.000
60,000,000
58,000,000
56,000.000
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
January 31, 2015
Month
Fund Balances - Beginning of Month /Period
$62,475,531.01
Receipts
7,133,418.85
Disbursements
(2,862,548.60)
Fund Balances - End of Month /Period
566,746,401.26
Portfolio Allocation:
BNY MM
5201,032.53
US Govt Agencies & Corp. Bonds
47,827,108.26
Local Agency Investment Fund
4,168.935.92
Subtotal - Investments
52,197,076.71
Reconciled Demand Deposit Balances
14,549,324.55
Total T'reasurer's Fund
$66,746,401.26
Portfolio Investment Allocation
BNY MM
Local Agency Investment Pond 0.39%
7.99%
US Govt Agencies & Corp.
Bonds
91.63%
Treasurer's Fund Balances
YTD
563,367,435.18
25,312,972.96
(21.934 006.881
566,746,401.26
C d_ C_ 7 a C_ V C V
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page 2
These accounts are not pan of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct
entities.
Hotel: The three original funds forthin Certificates of Participation 2002 Series A consist ofernsnoction 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 oflease payments
and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library constructime reserves to guarantee lease payments, and a lease payment fund lot the
life ofthe COP issue The COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Non- 1'r
pasta v Restricted Fund Balances
January 31, 2015
Previous
Ending
Balance
Nxt1st5
Interest
Withdrawals Bidance
'.Jon - Treasury Funds:
Cen. of Participation 2002 Series A Reserve Fund
686,258,24
5.37
12.61 686,251.00
Nine
Cert. Of Pmvicipation 2002 Set A Lease Pyul Fund
0.00
457,328 86
0.00
457,328.86
Non t
Cert. of Participation 2002 Series A Coast_ Pond
38,256 21
0.00
38,25621
sae;
COP 2010 Library Reserve Fund
1,277.062.50
1.85
1,277,064.35
two,2
COP 2010 It Inar, lease Pond
0.00
0.00
0.00
Nmtt
('01120 10 Library ACQ Construction Food
0.00
0.00
0.00
Nme E
COP 2010 Library COI Fund
0.00
0.00
0.00
N.., 2
COP 2010 Library Good Faith
0.00
0.00
0.00
Notel
Total Iicstricted Funds:
$2,001,576.95
$457,328.86
5722
,$12.61 $2,458,900.42
These accounts are not pan of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct
entities.
Hotel: The three original funds forthin Certificates of Participation 2002 Series A consist ofernsnoction 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 oflease payments
and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library constructime reserves to guarantee lease payments, and a lease payment fund lot the
life ofthe COP issue The COI fund was closed in September 2010.
Page 3
Town of Los Gatos
Statement of Interest Earned
January 31, 2015
Interest by Month
July 2014
Current
Fiscal
30,999.80
Month
Year to Date
Interest received from Investments
10,099.24
280,083.78
Interest accrued/(prepaid) at end of period (see page 5)
- 230,040.91
- 230,040.91
Interest accrued/(prepaid) at beginning of period
- 253,400.38
- 166,819.70
Interest earned on investments
$33,458.71
$216,862.57
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
33,458.71
February 2015
March 2015
April 2015
May 2015
June 2015
$2] 6,862.57
Page 4
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