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Staff ReportDATE: TO: FROM: SUBJECT MEETING DATE: 12/01/15 ITEM NO: f COUNCIL AGENDA REPORT NOVEMBER 12, 2015 MAYOR AND TOWN COUNCIL LAUREL PREVETTI, TOWN MANAGER FIRST QUARTER INVESTMENT REPORT (JULY THROUGH SEPTEMBER 2015) FOR FISCAL YEAR 2015/16 RECOMMENDATION: Receive the attached First Quarter Investment Report (July through September 2015) for Fiscal Year 2015/16. DISCUSSION: Attached for your consideration is the First Quarter Investment Report for FY 2015/16. The Town's weighted portfolio yield of 0.81% is still outperforming the Local Agency Investment Fund (LAIF ) yield of 0.30% by approximately one-half per cent (51 basis points) and One to Three Year Treasuries in general. Therefore, staff continues to replace matured or called investments with similar investments with respect to maturity and credit quality. Interest rates for investments purchased in the current quarter were up slightly in July, then dropped in September with the 30 Year Treasury ending at an all-time low (2.85%) for the quarter ending September 30, 2015. For the quarter the Town's rate of return decreased 4 basis points (0.04%). Market expectations are anticipating a Federal Reserve interest rate increase sometime in late calendar year 2015 but that expectation was tempered by a stock selloff in September which may delay rate rising to sometime in 2016. Staff is concentrating on 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: First Quarter Investment Report for FY 2015/16 (July through September 2015) PREPARED BY: STEVE CONWAY,� ,4®e -7 •'� t� Finance & Administrative Services Director/Town Treasurer Reviewed by: (_t/ Assistant Town Manager A�Town Attorney Finance N:\TRS\Staff Reports\Through fiscal 15_16\Treasurer's Report - Ql 2015 2016.doc Town of Los Gatos Summary Investment Information September 30, 2015 Weighted Average Portfolio Yield: 0.81% Weighted Average Maturity (days) This Month Last Month One year aso Portfolio Balance $67,739,719 $67,968,449 $61,315,201 Benchmarks/ References: Town's Average Yield 0.81% 0.73% 0.66% LAIF Yield for month 0.30% 0.30% 0.26% 3 mo. Treasury 0.00% 0.08% 0.01% 6 mo. Treasury 0.08% 0.27% 0.04% 2 yr. Treasury 0.64% 0.74% 0.35% 5 yr. Treasury (most recent) 1.37% 1.54% 1.41% Prime rate 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 535 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 ATTACHMENT 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 0. Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances September 30, 2015 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 Treasurer's Fund Month YTD $67,974,146.75 $70,832,337.72 2,596,263.18 7,617,384.17 (2,830,690.82) (10,727,306.74) $67,739,719.11 $67,722,415.15 $2,425,013.19 45,695,033.51 4,174,558.36 52,294,605.06 15,445,114.05 $67,739,719.11 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 4.64% 7.98% US Govt Agencies & Corp. Bonds 87.38% Treasurer's Fund Balances in n n h vt N z a a N page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances September 30, 2015 Previous Ending Balance De sits Interest Withdrawals Balance Non -Treasury Funds: Cert. of Participation 2002 Series A Reserve Fund $ 686,262.51 $ - $ 5.85 $ - $ 686,268.36 Note t Cert. Of Participation 2002 Ser A Lease Pymt Fund 41.48 0.00 0.00 0.00 41.48 Note i Cert. of Participation 2002 Series A Const. Fund 12.90 0.00 0.00 12.90 Note t COP 2010 Library Reserve Fund 1,277,064.44 0.00 0.00 0.00 1,277,064.44 Note 2 Total Restricted Funds: $1,963,381.33 $0.00 $5.85 $0.00 $1,963,387.18 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 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 2: 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 Statement of Interest Earned September 30, 2015 Interest by Month July 2015 $37,891.24 August 2015 39,641.24 September 2015 39,140.87 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 $116,673.35 Page 4 Page 5 Town of Los Gatos Investment Schedule September 30, 2015 Orginallssue Maturity Yield to Interest Interest Interest Days Apadt Par Ori&.. (Discount) Market Pureheeed Data or Maturity Recehsd Earned Earned W Institution C!L IPS e5 auras Rak Vda QW Premium ValM late- Can Ate ar call in Dan, Print Yrs Current FY Maturity PFIZER 717081DJ9 Corporate Note 03/11/15 750,000.00 753,037.50 3,037.50 751,380.00 5/152017 0.91% $ 1,352.08 S 1,988.84 S 1,726.17 $93 Berk Hath 084664BNO Coupon Note 0126/12 1,250,000.00 1,315,137.50 65,137.50 1,254,437.50 12/I9/2015 1.08% E 103,699.65 S 47,538.38 S 3,496.03 76 IRM 4592000X3 Coupon Nae 11/13/12 750,000.00 752,505.00 32,505.00 758,617.50 7/228016 0.76% S 39,365.62 S 15,283.67 S 1,466.21 296 Treasury 912829QXI Nae 08/1&11 11000,000.00 1,025,390.63 25,390.63 1,009,530.00 7/312016 0.97% 1 59,347.83 S 38,284.99 S 2,490.96 305 FNMA 3135GOCM3 Callable Nae 0328/14 1,000,000.00 1,014,600.00 14,600.00 1,008,010.00 9282016 0.66% E 18,750.00 $ 8,395.24 $ 1,682.71 364 Toyota Motor Credit 89233P6SO Coupon Nae 7/102015 500,000.00 502,200.00 2,200.00 500,620.00 1,649.31 10/52017 LOS% S (1,649.31) $ - S 1,183.57 736 FNMA 3135WVNS Callable Nae 05/14/13 11500,000.00 1,500,000.00 0.00 1,501,410.00 11/1412016 0.55% $ 16,500.00 E 17,562.33 S 2,079.45 411 Treasury 912828WF3 Nae 06/10/14 1,000,000.00 11000,000.00 0.00 1,002,250.00 11/152016 0.63% $ 5,808.42 S 6,592.47 S 1,575.34 412 Treasury 912828SC5 Nae 06/10/14 1,000,000.00 1,004,062.50 4,062.50 1,005,180.00 1/312017 0.72% E 9,982.73 $ 7,610.34 S 1,818.57 489 FNMA 3135GOVM2 Callable Nae 04/04/13 4,000,000.00 4,004,800.00 4,800.00 4,008,200.00 3/14'2017 0.72% S 73,333.33 S 64,427.35 S 7,254.98 531 Treasury 912828SM3 Nae 0527/14 20001000.00 2,015,156.25 15,156.25 2,014,580.00 3/312017 0.73% S 16,885.25 S 16,042.66 S 3,699.06 548 treasury 912828SSO Nae 06/23/14 500,000.00 499,804.69 (195.31) 502,500.00 4/30/2017 0.89% $ 3,733.02 E 4,528.63 E 1,119.98 578 Hark Hatb 084664BS9 Coupon Note 01/11/13 500,000.00 509,280.00 9,280.00 505,015.00 5/152017 1.61% S 18,755.56 E 14,456.63 $ 1,477.79 593 FNMA 3135GOPP2 Callable Note 10/19/12 1,5001000.00 1,504,050.00 4,050.00 1,506,270DD 920?017 0.94% 1 43,791.67 S 38,220.66 $ 3,573.48 721 FNMA 3135GOPP2 1 Callable Nae 11/30/12 1,000,000.00 1,003,200.00 3.200.00 1,004,180.00 9202017 0.93% S 28,055.56 E 24,090.61 $ 2,352.80 721 FNMA 3135GOPP2 2 Callable Nae 12/04/12 1,000,000.00 1,002750.00 2750.00 1,004,180.00 9202017 0.94% 1 27,916.67 $ 24,198.80 $ 2,375.98 721 FFCB 3133EAY28 Coupon Nae 10/18/12 2,000,000.00 1,996,960.00 (3,040.00) 2,002,560.00 9212017 0.86% $ 48,555.00 $ 46,461.74 S 4,339.57 722 FHLB 3133SIB20 Coupon Nae 12/12/12 2000,OOD.00 1,99&720.00 (1,280.00) 1,996,700.00 120/2017 0.76% S 36.083.33 S 38,872.53 $ 3,845.45 800 FNMA 3136GIER6 Callable Nae 04/17/13 1,000,000.00 1,004,400.00 4,400.00 1,005,110.Oo 3/5/2018 1.03% $ 26,812.50 S 22,796.75 $ 2,608.58 887 AAPL 037833AJ9 Corporate Nae 05/16/13 11000,000.00 991,680.01 (8,319.99) 995,330.00 5/32015 1.17% S 19,638.89 $ 24,789.41 S 2,942.74 946 FHLMC 3134G6TJ2 Callable Note 04/27/15 1,500,000.00 1,500,945.00 945.00 1,502310.00 427/2016 0.81% $ - S 2,136.12 E 3,070.68 210 FHLB 313OA4VT6 Callable Nae 427/2015 2000,000.00 2,001,880.00 1,850.00 2,001,300.00 10272015 0.89% S - $ 3,129.91 E 4,499.25 27 FHI.MC 313406V1A Callable Nae 04/29/15 1,500,000.00 1,499,250.00 (750.00) 1,501,395.00 10292015 1.50% S - S 3,566.43 $ 5,292.12 29 FHLB 3130A4Z88 Callable Note 04/29/15 500,000.00 50,000.00 0.00 498,770.00 4/292016 1.2P/o S - S 1,036.16 S 1,537.53 212 FHLB 313OA5H36 Coupon Note 6/92015 1,000,000.00 997,710.00 (2290.00) 1,003,080.00 827/2018 1.22% S 2,491.66 S 702.57 E 3,077.93 1062 Treasury 912828TB6 Nae 6/92015 1,000,000.00 1,000,468.75 468.75 1,002750.00 6(30/2017 0.73% $ 435.08 1 418.42 I 1,533.06 639 Treasury 9128281398 Note 6/92015 I,ODD,000.00 1,004,140.63 4,140.63 1,007,040.00 9/152017 0.82eA S 2663.04 S 470.45 S 2,061.03 716 Treasury 912828K25 Nae 6/112015 1,000,000.00 990,468.75 (9,$31.25) 998,360.00 1,168.03 4/152018 1.07/e $ (1,168.03) S 564.71 S 2,734.37 928 FHLB 3130A5H85 Coupon Note 6/112015 2,000,000.00 1,991,820.00 (8,180.00) 2002420.00 466.67 5252018 1.19% E (466.67) E 1,237.19 S 5,990.61 968 Treasury 912828VK3 Nae 7/312015 1,000,000.00 1,010,625.00 10,625.00 1,013,490.00 1,158.29 &302018 1.00% $ (1,158.29) E - S 1,689.38 1004 FFCB 3133EEFE5 Coupon Nae 7/302015 25001000.00 25D9,525.00 9.525.00 2518,150.00 3,281.25 12/152017 0.96% $ - S 4,100.16 810 FHLB 3130A66161 Coupon Nae 8202015 1,250,000.00 1,247,075.00 (2,925.00) 1,250,425.03 583.33 7252018 1,13% E - $ 1,586.39 1029 FHLB 313OA66142 Coupon Nae 8/252015 1,000,000.00 999,500.00 (500.00) 1,002,184.97 612.50 7252018 1.07% E - $ 1,052.52 1029 FFCB 3133EFAN7 Coupon Nae 8272015 1,000,000.00 1,002060.00 2,060.00 1,002590.00 62.50 4/242017 0.63% E - $ 583.05 572 walmart 9311421)F7 Corporate Nae 9252015 1,000,000.00 998,960.00 (1,040.00) 999,230.00 5,125.00 4/112018 1.17% E - I 159.71 924 Disney 25468PCV6 Corporate Note 9/25/2015 995,000.00 995,298.50 298.50 995,039.80 3,465.92 12/12017 1.09% E - 1 148.06 793 Subtotal $ 45.677.460.71 S 182.460.71 S 45.634.594.80 S 17572.80 S 599.514.60 $ 475,404.00 1 92525.29 BNY MM 2,425,013.19 2,425,013.19 Purchased Interest 17,572.80 17,572.80 LAIF N/A 12/31/14 4,174,558.36 4,174,558.36 3,361.21 S52.2946D506 $52,25173915 S 599.514.60 S 475.404.00 S 95.886.50 Bank rthe West Matured Assets SO (Mississippi Power) 605417BXI Coupon Nae 12/18/12 50,000.00 526,020.00 26,020.00 7/102015 0.96% 1 30,093.06 $ 12,535.13 S 2,757.98 Treasury 91282SNPI Nae 08/16/11 1,000,000.00 1,042812.50 42,812.50 7/312015 0.65% S 69,239.13 $ 25,900.49 E 567.83 FHLMC 3134G51,015 Callable Nae 10/30/14 25001000.00 2,500,00D.00 0.00 7/30/2015 0.75% $ 14,062.50 E 12521.40 E 1,541.10 FHLB 313OA3YE8 Callable Nae 022NI5 1,250,000.00 1,248,750.OD (1,250.00) 8202015 0.70% S 3,125.00 S 3,123.81 $ 1,225.50 FHLB 313465GE9 Callable Nae 8262014 11000,000.00 1,000,500.00 500.00 82&2015 0.52% S 2,850.00 S 4,387.94 E 812.05 FM 313OA4BE1 Callable Nae 3/4/2015 1,000,000.00 1,000,500.00 500.00 8252015 0.94% S 4,987.50 S 3,055.43 E 1,450.04 GE 36962G4F8 Corporate Nae 9/172013 2,000,000.00 2133,600.00 133,600.00 9212015 1.01% S 175,972.22 1 37,568.99 S 4,789.90 FHLMC 3134G46R4 Callable Nae 11282014 2,000,000.00 1,995,000.00 (5,000.00) 9252015 1.37% S 14,950.00 E 18,798.64 S 7,642.44 Taal Investments "Manuel" 5526,020.00 S 914,794.01 S 593.295.82 S 116.673.35 Maturity Profile Amount 0-1 year P 516,256,852.48 1-2 years $14,292,810.32 2-3 years $21,744,942.26 3-5 years 50.00 E52294,605.06 Market to Cort Petition Repurt institution Amatired BNY Assess Cost $45.677,460.71 BNY MM 2,425,013.19 Purchased laterest 17,572.80 I -AIF 4,174,558.36 Totals: $52294,60506 Page 5 Town of Los Gatos Summary Investment Information August 31, 2015 Weighted Average Portfolio Yield: 0.85% Weighted Average Maturity (days) This Month Last Month One year azo Portfolio Balance $67,968,449 $68,142,146 $63,367,436 Benchmarks/ References: Town's Average Yield 0.85% 0.73% 0.66% LAIF Yield for month 0.30% 0.30% 0.25% 3 mo. Treasury 0.08% 0.01% 0.06% 6 mo. Treasury 0.27% 0.01% 0.11% 2 yr. Treasury 0.74% 0.62% 0.43% 5 yr. Treasury (most recent) 1.54% 1.51% 1.48% Prime rate 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% 2 - 3 years 25% Portfolio Maturity Profile 3 - 5 years i - z years 30% gar 567 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 v eo To« n of Los Gatos Portfolio Allocation & Treasurer's Fund Balances August 31, 2015 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 Treasurer's Fund Month YTD $68,192,146.40 $70,832,337.72 2,872,072.47 5,038,424.95 (3,090,072.12) (7,896,615.92) $67,974,146.75 $67,974,146.75 $307,254.27 47,823,121.05 4.174.558.36 52,304,933.68 15,669,213.07 567,974,146.75 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 0.59% 7.98% US Govt Agencies & Corp. Bonds 91.43% Treasurer's Fund Balances z � ¢ page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances August 31, 2015 Previous Ending Balance Deposits Interest Withdrawals Balance Non -Treasury Funds: Cert. of Participation 2002 Series A Reserve Fund $ 686,256.66 $ - $ 5.85 $ - $ 686,262.51 Note I Cert. Of Participation 2002 Ser A Lease Pymt Fund 41.48 0.00 0.00 0.00 41.48 Note I Cert. of Participation 2002 Series A Const. Fund 0.00 12.90 0.00 12.90 Note I COP 2010 Library Reserve Fund 1,277,064.43 0.01 0.00 0.00 1,277,064.44 Note 2 Total Restricted Funds: $1,963,362.57 $0.01 $18.75 $0.00 $1,963,381.33 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: 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 2: 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 Statement of Interest Earned August 31, 2015 Interest by Month July 2015 $37,891.24 August 2015 39,641.24 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 $77,532.48 Page 4 Town of Los Gatos Investment Schedule August 31, 2015 Orpjnal Issue Maturity Yield to interest Interest Interest Days Deposit Par OrlKla l (Discount) Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP 8 Security y Date Value cost Premium Vslue Interest Call Date or Call to Date Prior Yrs. Current FY Maturity PFIZER 717ORIDJ9 Corporate Note 03/11/15 750,000.00 753,037.50 3,037.50 750,630.00 Purchased Interest 5/15/2017 0.91% $ 1,352.09 $ 1,988.94 $ 1,163.29 GE 36962G41`8 Corporate Nae 09/17/13 2,000.000.00 2,133,600.00 133,600.00 2,004,000.00 9/21/2015 1.01% S 132,222.22 $ 37,569.00 $ 3,579.00 Berk Hath 094664BNO Coupon Note 01/26/12 1,250,000.00 1,315,137.50 65,137.50 1,257,212.50 12/15/2015 1.08% S 103,699.65 S 47,538.38 S 2,356.02 IBM 459200GX3 Coupon Note 11/13/12 750,000.00 782,505.00 32,505.00 759,097.50 7/22/2016 0.76% $ 39,365.62 5 15,293.67 S 988.10 Treasury 912929QXI Nae 08/16/11 1,000,000.00 1,025,390.63 25,390.63 1,009,900.00 7/31/2016 0.97% $ 59,347.83 S 38,284.99 $ 1,678.69 FNMA 3135GOCM3 Callable Note 03/28/14 1,000,000.00 1,014,600.00 14,600.00 1,007,300.00 9/28/2016 0.66% $ 12,500.00 S 8,395.24 S 1,134.00 Toyota Motor Credit 99233P6SO Coupon Note 01/00/00 500,000.00 502,200.00 2,200.00 499,000.00 1,649.31 10/5/2017 1.05% S (1,649.31) S - S 750.56 FNMA 3135GOWY5 Callable Note 05/14/13 1,500,000.00 1500,000.00 0.00 1,499,745.00 11/14/2016 0.55% S 16,500.00 S 17,562.33 S 1,401.37 Treasury 912828WF3 Note 06/10/14 1,000,000.00 1,000,000.00 0.00 1,001,220.00 11/15/2016 0.63% S 5,808.42 $ 6,592.47 $ 1,061.64 Treasury 912929SC5 Nae 06/10/14 1,000,000.00 1,004,062.50 4,062.50 1,003,920.00 1/31/2017 0.72% $ 9,982.73 $ 7,610.34 S 1,225.56 FNMA 3135GOVM2 Callable Note 04/04/13 4,000,000.00 4,004,800.00 4,800.00 3,998,880.00 3/14/2017 0.72% S 58,333.33 $ 64,427.35 $ 4,889.22 Treasury 912828SM3 Note 0.5/27/14 2,000,000.00 2,015.156.25 15,156.25 2,011,400.00 3/31/2017 0.73% S 16,895.25 $ 16,042.66 $ 2,492.84 Treasury 912929SSO Note 06/23/14 500,000.00 499,804.69 (195.31) 501,660.00 4/30/2017 0.89% S 3,733.02 $ 4,529.63 $ 754.77 Berk Hath 084664BS9 Coupon Note 01/11/13 500,000.00 509,280.00 9,280.00 503,295.00 5/15/2017 1.61% S 19,755.56 $ 14,456.63 $ 995.90 FNMA 3135GOPP2 Callable Note 10/19/12 1,500,000.00 1,504,050.00 4,050.00 1503,240.00 9/20/2017 0.94% $ 36,291.67 $ 38,220.66 $ 2,408.21 FNMA 3135GOPP2_I Callable Note 11/30/12 1,000,000.00 1,003.200.00 3,200.00 1,002,160.00 9/20/2017 0.93% $ 23,055.56 $ 24,09(1.61 $ 1,585.59 FNMA 3135GOPP2_2 Callable Nae 12/04/12 10)0.000.00 1,002,750.00 2,750.00 1,002,160.00 9/20/2017 0.94% S 22,916.67 $ 24,198.90 $ 1,601.20 FFCB 3133EAY29 Coupon Note 10/18/12 2,000,000.00 1,996,960.00 (3,040.00) 1,998,040.00 9/21/2017 0.86% $ 40,255.00 5 46,461.74 S 2,924.50 FHLB 313381620 Coupon Note 12!12/12 2,000,000.00 1,998,720.00 (1,280.00) 1,988,820.00 12/8/2017 0.76% $ 36,083.33 S 38,972.53 S 2,591.50 FNMA 3136GIER6 Callable Note 04/17/13 1,000,000.00 1,004,400.00 4,400.00 999,250.00 3/5/2018 1.03% S 21,187.50 S 22,796.75 S 1,757.96 AAPL 037833AJ9 Corporate Note 05/16/13 1,000,000.00 991,680.01 (8.319.99) 988,990.00 5/32018 1.17% S 19,638.89 $ 24,789.41 $ 1,983.15 FHLMC 3134G6TJ2 Callable Nae 04/27/15 1500,000.00 1,500,945.00 945.00 1,498,530.00 4/27/2016 0.81% $ - $ 2,136.12 S 2,069.37 FHLB 3130A4VT6 Callable Note 4/27/2015 2,000,000.00 2,001,880.00 1,880.00 1,998,120.00 10/27/2015 0.89°/ $ - $ 3,129.91 $ 3,032.10 FHLMC 3134G6VL4 Callable Note 04/29/15 1500,000.00 1,499,250.00 (750.00) 1,493,850.00 1029/2015 1.50% $ - $ 3,566.43 S 3,566.43 FHLB 3130A4Z89 Callable Note 04/29/15 500,000.00 500000.00 0.00 497,055.00 4/292016 1.22% $ - $ 1,036.16 $ 1,036.16 FHLMC 3134G46R4 Callable Note 11/28/2014 2,000,000.00 1,995,000.00 (5,000.00) 2,00100.00 6/25/2019 1.37% $ 14,950.00 $ 16,063.76 S 4,653.99 FHLB 3130A51-136 Coupon Note 6/9/2015 1,000,000.00 997,710.00 (2,290.00) 999,600.00 9/27/2018 1.22% $ 2,491.66 $ 702.57 $ 2,074.26 Treasury 912929TB6 Note 6/9/2015 1,000,000.00 1,000,469.75 469.75 1,000,700.00 6/30/2017 0.73% $ 435.08 $ 418.42 $ 1,235.33 Treasury 912929D99 Nae 6/9/2015 1,000,000.00 1,004,140.63 4,140.63 1,014,400.00 2,336.96 9/15/2017 0.82% $ (2,336.96) $ 470.45 5 1,398.96 Treasury 912829K25 Note 6/11/2015 1,000,000.00 990,468.75 (9531.25) 994,090.00 1,168.03 4/15/2018 1.091/ $ (1,168.03) $ 564.71 $ 1,942.73 FHLB 3130A51195 Coupon Note 6/11/2015 2,000,000.00 1,991,820.00 (8,180.00) 1,999,120.00 466.67 5/25/2018 1.19% $ (466.67) $ 1,237.19 S 4,037.15 Treasury 912828VK3 Nae 7/31/2015 1,000,000.00 1,010,625.00 10,625.00 1,009,470.00 1,158.29 6/30/2019 1.00% $ (1,158.29) $ - $ 858.54 FFCB 3133EEFE5 Coupon Note 7/30/2015 2500,000.00 2509525.00 9525.00 2,509,125.00 3,281.25 12/18/2017 0.% $ - $ 2.116.21 FHLB 3130A661-6 1 Coupon Nae 9/20/2015 1,250,000.00 1,247,075.00 (2,925.00) 1,246,191.00 583.33 7/25/2018 1.13% $ - $ 425.62 FHLB 3130A661-6 2 Coupon Note 9/25/2015 1,000,0(10.00 999,500.00 (500.00) 998,791.50 612.50 725/2018 1.07% $ - $ 175.42 FFCB 3133EFAN7 Coupon Note x/27/2015 1,000,000.00 1,002,060.00 2,060.00 1,000,490.00 62.50 424/2017 0.63% $ - $ 68.59 Subtotal $ 47,811,802.21 $ 11,318.94 $ 689,011.82 $ 529,036.76 $ 67,902.92 BNY MM 307,254.27 Purchased Interest 11,318.94 LAIF N/A 12/31/14 4,174,558.36 2240.91 $52.304,933.68 $ 689,011.82 $ 529,036.76 S 70,143.73 Bank of the West Matured Asses SO (Mississippi Power) 605417BXI Coupon Note 12/19/12 500,000.00 526,020.00 26,020.00 7/10/2015 0.96! $ 30,093.06 S 12,535.13 $ 1,792.23 Treasury 912828NPI Note 09/16/11 1,000,0011.00 1,042,812.50 42,812.50 7/312015 0.65% $ 69,239.13 S 25,900.49 S 567.83 FHLMC 3134G5MH5 Callable Note 10/30/14 2,500,000.00 2,500,000.00 0.00 7/30/2015 0.75% S 14,062.50 $ 12,521.40 $ 1541.10 FHLB 313OA3YE8 Callable Note 02/20/15 1,250,000.00 1,248,750.00 (1,250.00) 8/20/2015 0.70% $ 3,125.00 $ 3,123.81 $ 1,225.50 FHLB 3134G5GE9 Callable Note 9/26/2014 1,000,000.00 1,000,500.00 500.00 8/26/2015 0.52% $ 2,850.00 S 4,397.94 $ 912.05 FHLB 3130A4BEl Callable Note 3/42015 1,000,000.00 1,000,500.00 500.00 8/25/2015 0.94% $ 4,987.50 $ 3,055.43 $ 1,450.04 Total Investments "Matured" $7.319,582.50 $ 813,369.01 S 590,560.95 $ 77,532.49 Maturity Pro81e Amount 0-1 year p $15,251,839.60 1-2 years $14,303,269.69 2-3 years $22,749,824.39 3-5 years $0.00 $52,304,933.68 Market to Cost Position Report Page 5 Amortized Institution Cost BNY Assets 547,811,802.21 BNY MM 307,254.27 Purchased Interest 11,318.84 LAIF 4,174,558.36 Totals: $52,304,933.68 Page 5 Town of Los Gatos Summary Investment Information July 31, 2015 Weighted Average Portfolio Yield: 0.79% Weighted Average Maturity (days) This Month Last Month One year aso Portfolio Balance $68,192,146 $70,832,338 $61,064,846 Benchmarks/ References: Town's Average Yield 0.79% 0.85% 0.65% LAIF Yield for month 0.28% 0.30% 0.27% 3 mo. Treasury 0.08% 0.01% 0.03% 6 mo. Treasury 0.14% 0.01% 0.07% 2 yr. Treasury 0.67% 0.62% 0.34% 5 yr. Treasury (most recent) 1.54% 1.51% 1.41% Prime rate 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 497 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 July 31, 2015 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 Treasurer's Fund Month YTD $70,832,337.72 $70,832,337.72 2,166,352.48 2,166,352.48 (4,806,543.80) (4,806,543.80) $68,192,146.40 $68,192,146.40 $3,820,512.14 44,298,842.35 4,174,558.36 52,293,912.85 15,898,233.55 $68,192,146.40 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 7.31% 7.98% US Govt Agencies & Corp. Bonds 84.71 Treasurer's Fund Balances page 2 Town of Los Gatos Non -Treasury Restricted Fund Balances July 31, 2015 Previous Ending Balance D sits Interest Withdrawals Balance Non -Treasury Funds: Cert. of Participation 2002 Series A Reserve Fund $ 686,251.00 $ - S 5.66 $ - $ 686,256.66 Note I Cert. Of Participation 2002 Ser A Lease Pymt Fund 41.48 0.00 0.00 0.00 41.48 Note I Cert. of Participation 2002 Series A Const. Fund 0.00 0.00 0.00 0.00 Note I COP 2010 Library Reserve Fund 1,277,064.43 0.00 0.00 1,277,064.43 Note 2 Total Restricted Funds: $1,963,356.91 $0.00 $5.66 $0.00 $1,963,362.57 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 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 2: 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 Statement of Interest Earned July 31, 2015 Interest by Month July 2015 $37,891.24 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 $37,891.24 Page 4 Town of Los Gatos Investment Schedule July 31, 2015 Orginal Issue Maturity Yield to Interest Interest Interest Days Deposit Per Original (Discount) Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP k security Date Value C29 Premium Value Interest Call Date or Cab to Date Prior Yrs. Current FY Maturity PFIZER 717091/3/9 Corporate Note 03/11/15 750,000.00 753,037.50 3,037.50 750,660.00 Purchased Interest 5/15i2017 0.91% S 1,352.09 $ 1,988.94 $ 591.64 FHLB 313OA3YE8 Callable Note 02/20/15 1,250,000.00 1,249,750.00 (1,250.00) 1,250,150.00 2/20/2019 1.44% $ - $ 2,374.29 $ 566.19 FHLMC 3134G5GE9 Callable Note 08/26/14 L000,000.00 1,000,500.00 500.00 1,000,210.00 926/2015 0.52% $ - $ 4,387.95 $ 441.64 GE 36962G4F8 Corporate Note 09/17/13 2,000,00.00 2,133,600.00 133,600.00 2,010,240.00 9/21/2015 1.01% $ 132,222.22 S 37,569.00 $ 1,799.00 Berk Hath 094664BNO Coupon Note 01/26/12 1,250,000.00 1,315,137.50 65,137.50 1,258,487.50 12/15/2015 1.09% $ 103.699.65 $ 47,538.38 $ 1,178.01 FHLB 313OA4BEI Callable Note 3/4/2015 1,000,000.00 1,000,500.00 500.00 1,000,530.00 262.50 9/25/2015 0.94% $ (262.51) $ 3,055.44 $ 902.70 IBM 459200GX3 Coupon Note 11/13!12 750,000.00 792,505.00 32,505.00 759,727.50 7/222016 0.76% $ 39,365.62 $ 15,293.67 $ 494.05 Treasury 912829QXI Note 09/16/11 1,000,000.00 1,025,390.63 25,390.63 1,011,250.00 7731/2016 0.97% $ 51,947.93 S 39,294.99 S 939.35 FNMA 3135GOCM3 Callable Note 0329/14 1,000,000.00 1,014,600.00 14,600.00 1,008,900,00 _ 9/28/2016 0.66% $ 12,500.00 S 9,395.24 $ 567.00 Toyota Motor Credit 99233P6SO Coupon Note 07/10/15 500,000.00 502,200.00 2,200.00 501,195.00 1,649.31 10/5/2017 1.05% S (1,649.31) S - S 303.11 FNMA 3135GOWY5 Callable Note 05/14/13 1,500,000.00 1,500,000.00 0.00 1,500,450.00 11/14/2016 0.55% S 16,500.00 S 17,562.33 S 700.69 Treasury 912929WF3 Note 06/10/14 1,000,000.00 1,000,000.00 0.00 1,002,340.00 11/15/2016 0.63% S 5,808.42 $ 6,592.47 $ 530.92 Treasury 912929SC5 Note 06/10/14 1,000,010.00 1,004,062.50 4,062.50 1,005,2300) 1/31/2017 0.72% S 5,607.73 $ 7,610.34 S 612.78 FNMA 3135GOVM2 Callable Note 04/04/13 4,000,000.00 4,0(A.900.00 4,900.00 4,007,360.00 3/14/2017 0.72% $ 59,333.33 $ 64,427.35 $ 2,444.61 Treasury 912928SM3 Note 05/27/14 2,(0,000.00 2,015.15625 15,156.25 2,014,220.00 3/31/2017 0.73% $ 16,985.25 S 16,042.66 $ 1.246.42 Treasury 912928SSO Note 16/23/14 500,000.00 499,804.69 (19.5.31) 502,265.00 4/30.2017 0.W1 S 3,733.02 $ 4,528.63 S 377.39 Berk Hath 084664BS9 Coupon Note 01/11/13 500,000.00 509,280.00 9,290.00 505,245.00 5/1.5/2017 1.61% $ 19,755.56 $ 14,45663 $ 497.95 FNMA 3135GOPP2 Callable Note 10/19/12 1500.000.00 1,504,050.00 4,050.00 1,506,180.00 9/20/2017 0.94% $ 36,291.67 $ 39,220.66 $ 1,204.11 FNMA 3135GOPP2_I Callable Note 11130/12 1,000,000.00 1,003,200.00 3,200.00 1,004,120.00 9/20/2017 0.91% $ 23,0.55.56 $ 24,090.61 $ 792.79 FNMA 3135GOPP2_2 Callable Note 12/04/12 1,000,000.00 1,002,750.00 2,750.00 1,004,120.00 9/20/2017 0.94% $ 22,916.67 $ 24,199,80 $ 800.60 FFCB 3133EAY28 Coupon Note 10/19/12 2,000,000.00 1,996,960.00 (3,040.00) 2,017,740.00 9/21/2017 O.R6% $ 40,255.00 $ 46,461.74 $ 1,462.25 FHLB 313381 B20 Coupon Note 12/12/12 2,000,000.00 1,998,720.00 (1,290.00) 1,991,140.00 12/8/2017 0.76% $ 36,093.33 S 38,872.53 S 1,295.75 FNMA 3136G IER6 Callable Note 04/17/13 1,000,000.00 1,004,400.00 4,400.00 1,000,070.00 3/5/2019 1.03.0 $ 21,187.50 S 22,796.75 $ 979.99 AAPL 037933A19 Corporate Note 05/16/13 1,000,000.00 991,690.01 (9,319.99) 999,970.00 5/3/2019 1.17% $ 19,639.99 $ 24,789.41 $ 991.59 FHLMC 3134G6112 Callable Note 04/27/15 1500,000.00 1500,945.00 945.00 1,499,670.00 4/27/2016 0.81% $ - S 2.136.12 $ 1,034.69 FHLB 313OA4VT6 Callable Note 4/27/2015 2,000.000.(X) 2,001,990.00 1,990.00 2.000,140.00 10/27/2015 0.99% $ - S 3,129.91 S 1,516.05 FHLMC 3134G6VL4 Callable Note 04/29/15 1500.000.00 1,499,250.00 (750,00) 1.495,710.00 10/29/2015 1.50% S - $ 3,566.43 S 1,783.21 FHLB 3130A4Z89 Callable Note 04/29/15 500,000.00 500,000.00 0.00 497,940.00 4/29/2016 1.22% S - S 1,036.16 $ 519.014 FHLMC 3134G46R4 Callable Note 11/29/2014 2,0(0,000.00 1,995,00.00 (5,000.00) 2,003,390.00 6/252019 1.37% $ 14,950.00 $ 16,063.76 $ 2,126.99 FHLB 3130ASH36 Coupon Note 6/9/2015 1,000,000.00 997,710.00 (2,290.00) 1,001,380.00 191.67 8/272019 1.22% $ (191.67) $ 702.57 S 1,037.13 Treasury 912829TB6 Note 6/9/2015 1,000,000.00 1,000,468.75 468.75 1,002,110.00 6/30/2017 0.73% $ 435.09 $ 418.42 $ 617.66 Treasury 912929D99 Note 6/92015 I,0(8),000.00 1,004,140.63 4,140.63 1,005,790.00 2,33696 9/15/2017 0.92% $ (2,336.96) $ 470.45 $ 694.48 Treasury 912928K25 Note 6/11/2015 1,000,0(0.00 990,468.75 (9,531.25) 995,960.00 1,169.03 4/15/2018 1.09% $ (1,169.03) $ 564.71 $ 921.36 FHLB 3130ASH85 Coupon Note 6/1112015 2,0(0,000.00 1,991,820.00 (9,190.00) 2,001,780.00 466.67 5/25/2018 1.19%-$ (466.67) $ 1,237.19 $ 2,018.58 Subtotal S 44,292,76721 $ 6,075.14 $ 675,149.27 $ 539,954.44 $ 33,967.62 BNY MM 3,920,512.14 Purchased Interest 6,075.14 LAIF N/A 12/31/14 4,174,558.36 1,120.40 $52,293,912.85 $ 675.349.27 S 539,954.44 $ 34,998.03 Bank of the West Matured Assets SO (Mississippi Pow, 605417BX 1 Coupon Note 12/I9/12 500,000.00 526,020.00 26,020.00 7/10/2015 0.00% $ 30,093.06 $ 12,535.13 S 794.29 Treasury 912929NPI Note 08/16/11 1,000,000.00 1,042,912.50 42,912.50 S 60,499.13 $ 25,900.49 $ 567.93 FHLMC 3134G5MH5 Callable Note 10/30/14 2,500,000.00 2500,000.00 0.00 S 14,062.50 S 12,521.40 $ 154110 Total Investments "Matured" 54,068,932.50 S 779,993.96 S 599,911.45 S 37,891.24 Maturity Profile Amount 0-1 year $19,735,463.14 1-2 years 514,326600.32 2-3 years $17,234,139.39 3-5 years $997,710.00 $52,293,912.8.5 Market to Cost Position Report Page 5 Amortized Institution Cost BNY Assets $44,292,76221 BNY MM 3,920,512.14 Purchased Interest 6,075.14 LAIF 4,174,558.36 Totals: $52,293,9I2.R5 Page 5