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2011022201 - Investment Report - First Quarter.�owx of ��S��pS� COUNCIL AGENDA REPORT DATE: FEBRUARY 10, 2011 MEETING DATE: 02/22/11 ITEM NO.: I TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER / SUBJECT: INVESTMENT REPORTS FOR FIRST AND SECOND FISCAL QUARTERS 10 /11 (JULY THROUGH DECEMBER 2010) RECOMMENDATION Accept reports as attached. DISCUSSION Attached for your review and acceptance are the Investment reports for the first and second quarters of the current fiscal year 10/11. Due to auditing and other financial reporting requirements, the investment reports were delayed. Over the last six months, returns on Treasuries and agency bonds have been fairly flat. The Town's overall rate of return has dropped from 1.88% to 1.81% because mature bonds are being reinvested at lower rates in the current market. The recommended strategy is to maintain short-term investments, preferably in callable agency bonds to pick up a few basis points over non - callable agencies and Treasuries. Investments made in the last six months have exceeded LAIF rates during the same period. FISCAL IMPACT None Attachment: Investment reports for the first and second fiscal quarters (July through December 2010). PREPARED BY AY AFmance;dministrativt Services Director/ Town Treasurer Reviewed by: 'Il. n Town Manager Assistant Town Manager 4 Town Attorney _l�Finanee Community Development Revised: 2/10111 2 :06 PM Town of Los Gatos Investment Report for the month ended December 31, 2010 Prepared by Linda L. Speicher, Project Manager 02/10/11 Town of Los Gatos Summary Investment Information December 31, 2010 Weighted Average Portfolio Yield: 1.81% Weighted Average Maturity (days) This Month Last Month One year aeo Portfolio Balance $70,335,484 $64,150,512 $69,168,433 Benchmarks/ References Town's Average Yield 1.81% 1.83% 2.10% LAIF Yield for month 0.46% 0.50% 0.56% 3 mo. Treasury 0.18% 0.18% 0.11% 6 me. Treasury 0.23% 0.21% 0.20% 2 yr. Treasury 0.74% 0.52% 1.09% 5 yr. Treasury (most recent) 2.15% 1.41% 2.67% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (01 /06/11) 1.39% 2 yr. Freddie Mac (12/02/10) 0.63% 448 Portfolio Maturity Profile 3 - 5 years 10% 2 - 3 years 13/ f s� e lyCar 57% 1 2yCers 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 Portfolio Allocation & Treasurer's Fund Balances December 31, 2010 Fund Balances - Beginning of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Month YTD $64,150,511.85 $73,918,287.52 10,546,010.99 23,714,750.25 (4,361,039.09 (27.297554.02) $ 70,335,483.75 $ 70,335,483.75 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Find Subtotal - Investments Reconciled Demand Deposit Balances $1,244,621.33 44,431,942.09 14,016.308.88 59,692,872.30 10,642,611.45 Total Treasurer's Fund $ 70,335,483.75 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 I: This account include redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District T, 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Las Gatos Non- Treasury Restricted Fund Balances December 31, 2010 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $281,512.31 $375.35 $281,887.66 Note r Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 254,138.81 Note2 Cert.ofParticipation Lease Payment Fund (Lot 4) 84,500.00 21,12590 0.00 105,625.00 Note Cert. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251. 19 Note4 Cert. Of Participation 2002 Series A Interest Fund 0.00 0.00 0.00 Note 4 Cert. of Participation 2002 Series A Coast. Fund 121,254.57 0.00 121,254.57 Note 4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note 5 COP 2010 Library Lease Fund 5,375.64 0.00 5,375.64 0.00 Notes COP 2010 Library ACQ Construction Fund 12,699,121.50 5,375.64 0.00 128,136.79 12,576,360.35 Notes COP 2010 Library COI Fund 0.00 0.00 0.00 Notes COP 2010 Library Good Faith 0.00 0.00 0.00 Note 6 Total Restricted Funds: $ 15,409,216.52 $ 26,500.64 $ 375.35 $133,512.43 $15,302,580.08 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 I: This account include redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District T, 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Los Gatos Statement of Interest Earned December 31, 2010 Current Fiscal Month Year to Date Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments $37,931.90 $558,444.21 196,561.23 196,561.23 ( 137,715.33) (189,965.15 $ 96,777.80 - $ 565,040.29 Ir r4MRsT7&5LIlt1 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 101,344.25 95,577.37 100,505.50 78,872.97 96,777.80 565,040.29 Page 4 Market to Cost PositionRoport Amortized Markel Unrealized Town of Los Gatos Cost Value* Gain oss Union Be&Aesets $44,425,833.92 $44,807,827.50 381,993.58 Urioahm 1,244,621.33 1,244,621.33 Inactive Deposits by Institution Puchased Interest 6,108.17 6,108.17 0.00 LAW 14,016 308.88 14,016,308. 0.00 Totals: $59,692,872.30 Market to Cost Position Report $381,993.58 December 31, 2010 Deposit Amortized Maturity Days Days to Days Yield to interest h tereA Interest bnsfituti Security Date Cost Dnte Elapsed Matu i Invested M.Writy Earned Received Accrued FHLB Coupon Note 12/16/10 999,750.00 12116/15 15 1811 1826 2.947% 1,210.79 1,210.79 FFCB Coupon Note 01/18/07 756,922.50 01/18/11 1443 18 1461 3.175% 95,009.85 65,625.00 29,384.85 FFCB Coupon Note 11/28/07 2,062,000.00 02/18/11 1129 49 1178 3.840% 244,918.15 265,416.67 (20,498.52) USTmasury Note 06/12109 1,987,187.50 03/31/11 567 90 657 0.875% 27,010.78 22,759.56 4,251.22 FNMA Coupon Note 09/29 /06 1,516,485.00 04/15111 1554 105 1659 4.874% 314,689.17 310,916.67 3,772.50 Treasury NOW 11/16 /09 753,515.63 05/31/11 410 151 561 0.568% 4,807.64 6,813.52 (2,005.88) FHLB Coupon Note 06/08/09 1,988,018.60 06/03/11 571 154 725 1.432% 44,535.54 33,437.50 11,098.04 USTreasmy, Note 08/05/09 1,992,187.50 07/31/11 513 212 725 1.196% 33,487.74 19,673.91 13,813.83 Treasury Note 09/21109 2,000,000.00 08/31/11 466 243 709 1.002% 25,585.32 18,839.78 6,745.54 USTreasary Note 10/19 /06 990,078.13 09/30/11 1534 273 1807 4.721% 196,442.73 177,651.10 18,791.63 FFCB CoupouNote 12/12/07 2,025,080.00 11/21/11 1115 325 1440 4.000% 247,448.13 255,683.33 (8,235.20) FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1408 342 1750 4.959% 188,632.30 175,493.06 13,139.24 USTreasury Note 12/31/09 1,497,539.06 12/31/11 365 365 730 1.083% 16,218.35 15,000.00 1,218.35 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 388 377 765 1.073% 22,713.95 10,402.78 12,311.17 FFCB Coupon Note 07/21 /09 1,012,800.00 01/17/12 528 382 910 1.472% 21,566.15 19,777.78 1,788.37 FBLB Coupon Note 05/09107 1,509,255.00 03 /09/12 1332 434 1766 4.743% 261,232.44 250,000.00 11,232.44 USTreasury Note 04/15110 999,375.00 03/31/12 260 456 716 1.054% 7,503.25 4,590.16 2,913.09 FFCB Coupon Note 04123/10 1,500,585.00 04/16/12 252 472 724 1.174% 12,162.88 8,500.00 3,662.88 FHLB Coupon Note 11/29 /07 2,038,360.00 08/15112 1128 593 1721 4.170% 262,683.73 250,777.78 11,905.95 GE Corporate Not. 01 /16 /08 1,542,165.00 10/19112 1080 658 1738 4.587% 209,310.24 217,218.75 (7,908.51) FFCB - Coupon Now 11110 /10 1,498,830.00 11/09/12 51 679 730 0.541% 1,132.99 1,132.99 GE Corporate Note 07/29/10 511,955.00 01/08/13 155 739 894 1.791% 3,893.73 3,893.73 FHLB (9) Coupon Note 07/29/10 1,506,480.00 01/12/13 155 743 898 1.218% 7,792.01 7,792.01 FNMA (6) CouponNotc 02/09/10 1,005,850.00 01/28/13 325 759 1084 1.820% 16,300.28 9,623.61 6,676.67 FIILMC Coupon Note 11/22/10 999,750.00 03/07113 39 797 836 0.962% 1,027.63 1,027.63 FNMA(7) Coupon Note 03/25/10 998,580.00 03/25/13 281 815 1096 1.899% 14,598.94 9,250.00 5,348.94 FNMA(8) Coupon Note 06/11/10 1,500,000.00 06/10/13 203 892 1095 1.830% 15,266.71 7,458.33 7,808.38 FELMC(3) Coupon Note 08 /18/10 1,252,400.00 11/18/13 135 1053 1188 1.339% 6,202.47 6,202.47 FNMA(1) Coupon Note 07/08/10 750,000.00 07/07/15 176 1649 1825 3.712% 13,424.22 13,424.22 FNMA CouponNotc I1/10 /10 1,503,225.00 09116115 51 1720 1771 0.955% 2,005.88 2,005.88 FHLMC(2) Coupon Note 09124/10 2,000,000.00 09124/15 98 1728 1826 2.318% 12,447.34 12,447.34 FHLMC(]0) CouponNotc 10128110 750,000.00 10/28/15 64 1762 1826 2.100% 2,761.64 2,761.64 Subtotal 44,425,833.92 UnionMM 1,244,62133 30 30 0.05% 51.15 51.15 Purchased Interest 6,108.17 LAW N/A 09/30/10 14,016,308.88 12/31/10 92 0 92 0.46% 17,396.41 17,396.41 $59,692,872.30 448 1.81% $2,351,470.52 $2,154,909.29 $196,561.23 Maturity Profile Amount Percent .. 0 -1 year $33,822,132.30 56.66% 1 -2 years $12,092,750.00 20.26% 2 -3 yours $7,775,015.00 13.03% 3 -5 years $6,002,975.00 10.06% $ 59,692,972.30 100.00% Market to Cost PositionRoport (1) Callable quarterly beg. 01/7/11 Coupon ate changes annually (2) Callable quarterly beg. 3/24111 Coupon rate charges annually (3) Callable once on 8/18/11 (6) Callable once on 01/28/11 * Source: Treasury and Agency Obligations- Union Bark of California LAW balances per Local Agency Investment Fund monthly statement page 5 Amortized Markel Unrealized ThAitution Cost Value* Gain oss Union Be&Aesets $44,425,833.92 $44,807,827.50 381,993.58 Urioahm 1,244,621.33 1,244,621.33 0.00 Puchased Interest 6,108.17 6,108.17 0.00 LAW 14,016 308.88 14,016,308. 0.00 Totals: $59,692,872.30 $60,074,865.88 $381,993.58 (1) Callable quarterly beg. 01/7/11 Coupon ate changes annually (2) Callable quarterly beg. 3/24111 Coupon rate charges annually (3) Callable once on 8/18/11 (6) Callable once on 01/28/11 * Source: Treasury and Agency Obligations- Union Bark of California LAW balances per Local Agency Investment Fund monthly statement page 5 Town of Los Gatos Investment Report for the month ended November 30, 2010 Prepared v' Linda L. Speicher, Project Manager 02/10/10 Town of Los Gatos Summary Investment Information November 30, 2010 Weighted Average Portfolio Yield: 1.83% Weighted Average Maturity (days) This Month Last Month One Year ago Portfolio Balance $64,150,512 $63,065,549 $69,611,238 Benchmarks/ References: Town's Average Yield 1.83% 1.93% 2.11 ° ° % LAW Yield for month 0.50% 0.50% 0.61% 3 me. Treasury 0.18% 0.13% 0.15% 6 mo. Treasury 0.21% 0.17% 0.06% 2 yr. Treasury 0.52% 0.40% 0.80% 5 yr. Treasury (most recent) 1.41% 1.33% 2.18% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (12/01/10) 0.87% 2 yr. Fannie Mae (11/09/10)) 0.45% 461 Portfolio Maturity Profile 3 - 5 years 8% 2 - 3 years 15% £ € $ £ 4 o 0 1 year 53% M { 3Y 666666 3333 ° �� 24% 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 fiords to meet the cash demands for the next six months. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances November 30, 2010 Fund Balances- Beginning ofMonth/Period Receipts Disbursements Fund Balances - End of Montb/Period Month YTD $63,065,549.40 $73,918,287.52 4,124,701.17 13,168,739.26 (3,039,738.72 (22.936 514.93) $ 64,150,511.85 $ 64,150,511.85 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $166,583.27 45,472,293.76 14.016.308.88 59,655,185.91 4.495,325.94 Total Treasurer's Fund $ 64,150,511.85 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 include redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District T, 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. Il holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Las Gatos Non - Treasury Restricted Fund Balances November 30, 2010 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/10/02 $281,124.98 $387.33 $281,512.31 Nate t Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 254,138.81 Note Cart. of Participation Lease Payment Fund (Lot 4) 63,375.00 21,125.00 0.00 84,500.00 Nme3 Cart. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251.19 Note4 Cent, Of Participation 2002 Series A Interest Fund 0.00 0.00 0.00 Nom4 Cert. of Participation 2002 Series A Const. Fund 121,254.57 0.00 121,254.57 Note 4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note 5 COP 2010 Library Lease Fund 0.00 5,375.64 0.00 5,375.64 Note 5 COP 2010 Library ACQ Construction Fund 14,095,671.47 0.00 1,396,549.97 12,699,121.50 rvme 5 COP 2010 Library COI Fund 0.00 0.00 0.00 Nom s COP 2010 Library Good Faith 0.00 0.00 0.00 Note 6 Total Restricted Funds: $ 16,778,878.52 $ 26,500.64 $387.33 $ 1,396,549.97 $ 15,409,216.52 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 include redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District T, 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. Il holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Los Gatos Statement of Interest Earned November 30, 2010 Current Fiscal Mouth Year to Date Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments $62,220.14 $520,512.31 137,715.33 137,715.33 ( 121,062.50 ) ( 189,965.15 ) $ 78,872.97 $ 468,262.49 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 101,344.25 95,577.37 100,505.50 78,872.97 468,262.49 Page 4 page 5 Town of Los Gatos Inactive Deposits by Institution Market to Cost PoslfinuReport November 30, 2010 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institu i Security Date Cost Dale Elapse Maturi Invested Maturity Famed Received Acomed FNMA Coupon Note 11 /10 /10 1,503,225.00 09116115 20 1751 1771 0.955% 786.62 786.62 FBLB Coupon Note 03/23109 1,040,160.00 12/10/10 617 10 627 1.485% 26,110.72 46,930.56 (20,819.84) FFCB Coupon Note 01/18/07 756,922.50 01/18/11 1412 49 1461 3.175% 92,968.75 65,625.00 27,343.75 FFCB Coupon Note 11/28/07 2,062,000.00 02/18111 1098 80 1178 3.840% 238,193.20 265,416.67 (27,223.47) USTreasury Note 06/12109 1,987,187.50 03/31/11 536 121 657 0.875% 25,534.00 22,759.56 2,774.44 FNMA Coupon Note 09/29106 1,516,485.00 04/15111 1523 136 1659 4.874% 308,411.58 310,916.67 (2,505.09) Treasury Note 11/16109 753,515.63 05/31/11 379 182 561 0.568% 4,444.13 6,813.52 (2,369.39) FHLB CouponNole 06108109 1,988,018.60 06/03/11 540 185 725 1.432% 42,117.67 22,187.50 19,930.17 USTwasury Note 08/05/09 1,992,187.50 07/31/11 482 243 725 1.196% 31,464.12 19,673.91 11,790.21 Treasury Note 09/21/09 2,000,000.00 001/11 435 274 709 1.002% 23,883.29 18,839.78 5,043.51 USTreasury Note 10/19/06 990,078.13 09130111 1503 304 1807 4.721% 192,472.90 177,651.10 14,821.80 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1084 356 1440 4.000% 240,568.41 255,683.33 (15,114.92) FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1377 373 1750 4.959% 184,479.17 152,368.06 32,111.11 USTreasnry, Note 12/31109 1,497,539.06 12/31/11 334 396 730 1.083% 14,840.90 7,500.00 7,340.90 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 357 408 765 1.073% 20,899.18 10,402.78 10,496.40 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 497 413 910 1.472% 20,299.95 19,777.78 522.17 FBLB CouponNole 05/09 /07 1,509,255.00 03 /09/12 1301 465 1766 4.743% 255,152.71 250,000.00 5,152.71 USTreasary Note 04/15/10 999,375.00 03/31/12 229 487 716 1.054% 6,608.63 4,590.16 2,018.47 FFCB Coupon Note 0423/10 1,500,585.00 04/16112 221 503 724 1.174% 10,666.65 8,500.00 2,166.65 FIII,B Coupon Note 1129/07 2,038,360.00 08/15/12 1097 624 1721 4.170% 255,464.59 250,777.78 4,686.81 GE CoryorateNote 01/16/08 1,542,165.00 10/19/12 1049 689 1738 4.587% 203,302.26 217,218.75 (13,916.49) FFCB CouponNole 11/10 /10 1,498,830.00 11/09/12 20 710 730 0.541% 444.31 444.31 FNMA(5) Coupon Note 04/28/10 999,900.00 12/28/12 216 759 975 1.804% 10,674.66 3,000.00 7,674.66 GE Corporate Note 07/29/10 511,955.00 01/08113 124 770 894 1.791% 3,114.99 3,114.99 FULB(9) Coupon Not. 0729/10 1,506,480.00 01/12/13 124 774 898 1.218% 6,233.61 6,233.61 FNMA (6) Coap..Nole 02/09/10 1,005,850.00 01/28/13 294 790 1084 1.820% 14,745.49 9,623.61 5,121.88 FNMA(7) Coupon Note 0325/10 998,580.00 03/25/13 250 846 1096 1.899% 12,988.38 9,250.00 3,738.38 FNMA(8) Coupon Note 06111/10 1,50D,000.00 06/10/13 172 923 1095 1.830% 12,935.34 12,935.34 FIUMC(3) Coupon Note 08 /18 /10 1252,400.00 11/18/13 104 1084 1188 1.339% 4,778.20 4,778.20 FIB.MC Coupon Not. 1122/10 999,750.00 03/07/13 8 828 836 0.962% 210.80 210.80 FNMA(1) Crop. Note 07/08/10 750,000.00 07/07/15 145 1680 1825 3.712% 11,059.73 11,059.73 FHLMC(2) Coupon Note 0924/10 2,000,000.00 09/24/15 67 1759 1826 2.318% 8,509.92 8,509.92 FHLMC(10) Coupon Note 1028 /10 750,000.00 1028/15 33 1793 1826 2.100% 1,423.97 1,423.97 Subtotal 45,466,143.92 UrionMM 166,583.27 30 30 0.05% 6.85 6.85 Purchased Interest 6,149.84 LAIF N/A 09/30/10 14,016,308.88 12/31/10 61 31 92 0.50% 7,426.19 7,426.19 $59,655,185.91 461 1.83% $2,293,221.85 $2,155,506.52 $137,715.33 Maturity Profile Amount Percent 0 -1 year $31,300,676.85 52.47% 1 -2 yens $14,576,369.06 24.43% 2 -3 years $8,774,915.00 14.71% 3 -5 years $5,003,225.00 8.39% $ 59,655,185.91 100.00 Market to Cost Position Report Amortized Market Unrealized *Source:Tmasury and Agency Obligations -Union Bank o£Califonua institution Cost Value* Gain Loss LAIF balances par Local Agency hweslmeatI7nd monthly statement Union Bank Assets $45,466,143.92 $45,911,717.50 445,573.58 Union MM 166,583.27 166,583.27 0.00 Purchased Interest 6,149.84 6,149.84 0.00 LAW 14,016,308.88 14,016,308.88 0.00 Totals $59,655,185.91 $60,100,759.49 $445,573.58 (1) Callable quarterly beg. 012/11 Coupon rate changes annually (2) Callable quarterly beg. 3/24/11 Coupon rate ehaoges annually (3) Callable once on 8/18/11 (5) Callable once on 12/28/10 (6) Callable once on 0128/11 page 5 Town of Los Gatos Investment Report for the month ended October 31, 2010 Prepared f x Linda L. Speicher, Prooject Manager 02/10/11 Town of Los Gatos Summary Investment Information October 31, 2010 Weighted Average Portfolio Yield: 1.93% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $63,062,754 $65,390,159 $72,911,890 Benchmarks/ References: Town's Average Yield 1.93 %° 1.88% 2.11% LAN Yield for month 0.50% 0.50% 0.65% 3 me. Treasury 0.13% 0.16% 0.09% 6 mo. Treasury 0.17% 0.19% 0.19% 2 yr. Treasury 0.40% 0.44% 1.02% 5yr. Treasury (most recent) 1.33% 1.26% 2.39% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (11/01/10) 0.76% 2 yr. Freddie Mac (10/22/10) 0.38% 426 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, 2010 Fund Balances - Beginning of MontbNeriod Receipts Disbursements Fund Balances - End of MonWeriod Montli YTD $65,390,159.17 $73,918,287.52 2,788,242.99 9,044,038.09 ( 5,112,852.76 ) (19.896.776.21) $ 63,065,549.40 $ 63,065,549.40 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $1,072,826.73 44,504,002.37 14.016.308.88 59,593,137.98 3.472.411.42 Total Treasurers Fund $ 63,065,549.40 Local Agencylnwslmenr Fund 23.5% Treasury, Agencies, & Corp. Notes 67.8 page 2 Portfolio Investment Allocation Union MM 1.8% 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 include 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. 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 lease payments should the Town not make payment. Nate 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi- annually. Page 3 Town of Los Gatos Non - Treasury Restricted Fund Balances September 30, 2010 Previous Ending Balance Deposits Interest Withdrawals Balance Non- Treasury Funds: Downtown Parking District 12 120/02 $280,750.65 $374.33 $281,124.98 Note Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 254,138.81 Note Cert. of Participation Lease Payment Fund (Lot 4) 21,125.00 42,250.00 - 0.00 63,375.00 Nuto3 Cert. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251.19 Neto4 Cert. Of Participation 2002 Series A Interest Fund 0.00 0.00 0.00 Note4 Cert. of Participation 2002 Series A Const. Fund 146,441.87 188.12 25,375.42 121,254.57 Nete4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note 5 COP 2010 Library Lease Fund 0.00 0.00 0.00 Note 5 COP 2010 Library ACQ Construction Fund 14,815,998.95 0.00 720,327.48 14,095,671.47 Note 5 COP 2010 Library COI Fund 0.00 0.00 0.00 Note 5 COP 2010 Library Good Faith 0.00 0.00 0.00 Note 6 Total Restricted Funds: $ 17,481,768.97 $42,250.00 $562.45 $745,702.90 $16,778,878.52 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 include 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. 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 lease payments should the Town not make payment. Nate 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi- annually. Page 3 Town of Los Gatos Statement of Interest Earned October 31, 2010 Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments Current Fiscal Month Year to Date $141,440.21 $458,292.17 121,062.50 121,062.50 ( 161,997.21 ) ( 189,965.15 ) $ 100,505.50 $ 389,389.52 Interest by Month July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 101,344.25 95,577.37 100,505.50 20y1J07. JG Page 4 page 5 Town of Los Gatos Inactive Deposits by Iumtirtlou Market to Cast PositiouReport October 31, 2010 Deposit Amortized Maturity Days Daysto Days Yield to Interest Interest Interest Institution Securi ty Date Cost Date Elapsed M.bui Invested Malawi Earned Received Acemed FFCB Coupon Note 12/07/07 2,032,140.00 11 /08 /10 1059 8 1067 3.715% 219,036.02 208,072.22 10,963.80 FHLB Coupon Note 03/23109 1,040,160.00 12/10/10 587 40 627 1.485% 24,841.16 46,930.56 (22,089.40) FFCB Coupon Note 01/18/07 756,922.50 O1/18/11 1382 79 1461 3.175% 90,993.49 65,625.00 25,368.49 FFCB Coupon Note 11/28/07 2,062,000.00 02/18/11 1068 110 1178 3.840% 231,685.19 265,416.67 (33,731.48) USTreasury Note 06/12/09 1,987,187.50 03/31/11 506 151 657 0.875% 24,104.86 22,759.56 1,345.30 FNMA Coupon Note 09/29/06 1,516,485.00 04/15/11 1493 166 1659 4.874% 302,336.50 310,916.67 (8,580.17) Treaouy Note 11/16/09 753,515.63 05131111 349 212 561 0.568% 4,092.35 3,532.27 560.08 FHL13 Coupon Note 06108/09 1,988,018.60 06/03/11 510 215 725 1.432% 39,777.80 22,187.50 17,590.30 USTreasury, Note 08105/09 1,992,187.50 07/31111 452 273 725 1.196% 29,505.77 19,673.91 9,831.86 Treasury Note 09/21/09 2,000,000.00 08/31/11 405 304 709 1.002% 22,236.16 18,839.78 3,396.38 USTmosury Note 10119106 990,078.13 09130/11 1473 334 1807 4.721% 188,631.12 177,651.10 10,980.02 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1054 386 1440 4.000% 233,910.61 212,183.33 21,727.28 FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1347 403 1750 4.959% 180,460.02 152,368.06 28,091.96 USTreamay Note 12/31/09 1,497,539.06 12/31111 304 426 730 1.083% 13,507.88 7,500.00 6,007.88 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 327 438 765 1.073% 19,142.94 10,402.78 8,740.16 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 467 443 910 1.472% 19,074.60 19,777.78 (703.18) FHLB Coupon Note 05/09 /07 1,509,255.00 03/09/12 1271 495 1766 4.743% 249,269.09 250,000.00 (730.91) USTreasury Note 04/15/10 999,375.00 03/31/12 199 517 716 1.054% 5,742.87 4,590.16 1,152.71 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 191 533 724 1.174% 9,218.69 8,500.00 718.69 FHLB Coupon Noie 11/29107 2,038,360.00 08/15/12 1067 654 1721 4.170% 248,478.32 250,777.78 (2,299.46) GE CorporaleNote 01/16/08 1,542,165.00 10/19/12 1019 719 1738 4.587% 197,488.09 217,218.75 (19,730.66) FHLMC(4) Corporate Nee 02/03/10 1,005,650.00 11/05/12 270 736 1006 1.793% 13,338.23 5,111.11 8,227.12 FNMA(5) Coupon Note 04128/10 999,900.00 12/28/12 186 789 975 1.804% 9,192.07 3,000.00 6,192.07 GE Corporate Note 07129/10 511,955.00 01/08/13 94 800 894 1.791% 2,361.36 2,361.36 FHLB(9) Coupon Note 07/29/10 1,506,490.00 01/12/13 94 804- 898 1.218% 4,725.48 4,725.48 FNMA (6) Coupon Note 02/09110 1,005,850.00 01/28/13 264 820 1084 1.820% 13,240.84 9,623.61 3,617.23 FNMA(7) Coupon Note 03/25110 998,580.00 03/25/13 220 876 1096 1.899% 11,429.77 9,250.00 2,179.77 FNMA(8) Coupon Note 06111110 1,500,000.00 06/10/13 142 953 1095 1.830% 10,679.18 10,679.18 FHLMC(3) Coupon Note 08/18/10 1,252,400.00 11/18/13 74 1114 1188 1.339% 3,399.87 3,399.87 FNMA(1) Coupon Note 07108/10 750,000.00 07/07/15 115 1710 1825 3.712% 8,771.51 8,771.51 FIH,MC(2) Coupon Note 09%24/10 2,000,000.00 09/24/15 37 1789 1826 2.318% 4,699.51 4,699.51 FHLMC(10) Coupon Note 10/28/10 750,000.00 10/28/15 3 1823 1826 2.100% 129.45 129.45 Subtotal 44,502,128.92 Union MM 1,072,826.73 30 30 0.05% 44.09 44.09 Purchased Interest 1,873.45 LAIF N/A 09/30110 14,016,308.88 12/31/10 31 fit 92 0.50% 7,426.19 7,426.19 $59,593,137.98 426 1.93% $2,442,971.10 $2,321,908.60 $121,062.50 Maturity Profile Amount Percent 0 -1 year $32,209,703.92 54.05% 1 -2 years $15,102,619.06 25.34% 2 -3 years $7,528,415.00 12.63% 3 -5 years $4,752,400.00 7.97% $ 59,593,137.98 100.00 Market to Cost Position Report Amortized Market Unrealized * Source: Treasury and Agency Obligations - Union Bank ofCalifonin Institution Cost Value* Gain Loss LAIF balances per Local Agency bwcslment Fund monthly statement. Union Banrk Assets $44,502,128.92 $45,028,632.50 526,503.58 Union MM 1,072,826.73 1,072,826.73 0.00 Purchased Interest 1,873.45 1,873.45 0.00 LAW 14,016,308.88 14,016,308.88 0.00 Totals: $59,593,137.98 $60,119,641.56 $526,503.58 (1) Callable quarterly beg. OW11l Cmrpon rate changes annually (2) Callable quarterly beg. 3/24111 Coupon rate changes mmnally (3) Callable once on 8/18/11 (4) Callable once on 1115110 (5) Callable once on 12/28/10 (6) Callable once ou 01/28/11 page 5 Town of Los Gatos Investment Report for the month ended September 30, 2010 Prepared by Linda L. Speicher, Project Manager 02/10/11 Town of Los Gatos Summary Investment Information September 30, 2010 Weighted Average Portfolio Yield: 1.88% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $65,390,159 $70,877,094 $73,931,975 Benchmarks/ References: Town's Average Yield 1.88% 1.75% 2.11% LAIF Yield for month 0.50% 0.51% 0.70% 3 me. Treasury 0.16% 0.15% 0.12% 6 mo. Treasury 0.19% 0.19% 0.19% 2 yr. Treasury 0.44% 0.50% 1.03% 5 yr. Treasury (most recent) 1.26% 1.00% 2.47% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (08/20/10) 0.88% 2 yr. Fannie Mae (08/30/10) 0.70% 387 Portfolio Maturity Profile 3 - 5 years 6% 2 -3 years ............. £ s s 3 1 a�g33 p�, s 3 0 yyear - 1- 2ycars .<..e ..,.., . to-,., %:'YL 59% 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. Pagel Town of Los Gatos Portfolio Allocation & Treasurer's Find Balances September 30, 2010 Fund Balances - Beginning of MonMeriod Receipts Disbursements Farad Balances - End of MonMeriod Month YT $70,877,094.36 $73,918,287.52 2,103,034.50 6,255,795.10 (7,589,969.69) (14.783.923.45) $ 65,390,159.17 $ 65,390,159.17 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $969,976.03 44,491,728.93 17.990.084.63 63,451,789.59 1.938,369.58 Total Treasurer's Fund $ 65,390,159.17 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 include 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. 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 lease payments should the Town not make payment. Nate 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually, Page 3 Town of Los Gatos Non - Treasury Restricted Fund Balances September 30, 2010 Previous Ending Balance Deposits Interest Withdrawals Balance Non- Treasury Funds: Downtown Parking District 12/20/02 $280,364.37 $386.28 $280,750.65 Note t Certificates of Participation Reserve Fund (Lot 4) 254,136.26 2.55 254,138.81 Note 1 Cert. ofParlicipation Lease Payment Fund (Lot 4) 0.00 21,125.00 0.00 21,125.00 Note Cert. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251.19 Note 4 Cert. Of Participation 2002 Series A Interest Fund 0.00 0.00 0.00 Nete4 Cert. of Participation 2002 Series A Const. Fund 146,441.87 0.00 146,441.87 Nure4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Notes COP 2010 Library Lease Fund 0.00 0.00 0.00 Note 5 COP 2010 Library ACQ Construction Fund 14,815,998.95 0.00 14,815,998.95 Note 5 COP 2010 Library COI Fund 5,375.60 0.00 5,375.60 0.00 Note 5 COP 2010 Library Good Faith 0.00 0.00 0.00 Note 6 Total Restricted Funds: $ 17,465,630.74 $21,125.00 $388.83 $5,375.60 $17,481,768.97 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 include 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. 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 lease payments should the Town not make payment. Nate 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually, Page 3 Town of Los Gatos Statement of Interest Earned September 30, 2010 Current Fiscal Month Year to Date Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 $82,848.57 $316,851.96 161,997.21 161,997.21 ( 149,268.41 ) ( 189,965.15 ) $ 95,577.37 $ 288,884.02 288,884.02 91,962.40 101,344.25 95,577.37 Page 4 page 5 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report September 30, 2010 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Date Elapsed Matmi Invested Mnhui Earned Received Acemed USTreasury Note 05/31107 737,226.56 10115110 1218 15 1233 4.801% 118,110.12 91,618.85 26,491.27 FFCB Coupon Note 12/07107 2,032,140.00 11/08/10 1028 39 1067 3.715% 212,624.20 208,072.22 4,551.98 FHLB Coupon Note 03/23/09 1,040,160.00 12/10/10 556 71 627 1.485% 23,529.27 46,930.56 (23,401.29) FFCB Coupon Note 01/18107 756,922.50 01/18/11 1351 110 1461 3.175% 88,952.39 65,625.00 23,327.39 FFCB Coupon Note 11/28/07 2,062,000.00 02/18/11 1037 141 1178 3.840% 224,960.25 265,416.67 (40,456.42) USTmasnry Note 06/12/09 1,987,187.50 03/31/11 475 182 657 0.875% 22,628.08 22,759.56 (131.48) FNMA Coupon Note 09/29/06 1,516,485.00 04/15/11 1462 197 1659 4.874% 296,058.92 272,479.17 23,579.75 Treasury Note 11/16/09 753,515.63 05/31/11 318 243 561 0.568% 3,728.85 3,532.27 196.58 FBLB Coupon Now 06/08/09 1,988,018.60 06103/11 479 246 725 1.432% 37,359.93 22,187.50 15,172.43 USTreasury Note 08/05/09 1,992,187.50 07/31/11 421 304 725 1.196% 27,482.14 19,673.91 7,808.23 Treasmy Note 09/21/09 2,000,000.00 0881111 374 335 709 1.002% 20,534.14 18,839.78 1,694.36 USTreasuy Note 10/19/06 990,078.13 09130/11 1442 365 1807 4.721% 184,661.29 177,651.10 7,010.19 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1023 417 1440 4.000% 227,030.89 212,183.33 14,847.56 FFCB Cmrpon Note 02/22/07 986,080,00 12/08/11 1316 434 1750 4.959% 176,306.89 152,368.06 23,938.83 USTreasnry Note 12/31/09 1,497,539.06 12/31/11 273 457 730 1.083% 12,130.44 7,500.00 4,630.44 FNMA Coupon Note 12/08/09 1,991,380.00 01112/12 296 469 765 1.073% 17,328.17 10,402.78 6,925.39 FFCB Coupon Note 07/21/09 1,012,800.00 01117112 436 474 910 1.472% 17,808.41 19,777.78 (1,969.37) FHLB Coupon Note 05/09107 1,509,255.00 03109/12 1240 526 1766 4.743% 243,189.36 250,000.00 (6,810.64) USTmasnry Note 04/15/10 999,375.00 03131/12 168 548 716 1.054% 4,848.26 4,590.16 258.10 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 160 564 724 1.174% 7,722.46 7,722.46 MILD Coupon Note 11/29/07 2,038,360.00 08/15/12 1036 685 1721 4.170% 241,259.17 250,777.78 (9,518.61) GE CoMomte Note 01116108 1,542,165.00 10/19/12 988 750 1738 4.587% 191,480.11 177,843.75 13,636.36 FHLMC(4) Cooperate Note 02/03/10 1,005,650.00 11/05/12 239 767 1006 1.793% 11,806.80 5,111.11 6,695.69 FNMA(5) Coupon Note 04/28110 999,900.00 12/28/12 155 820 975 1.804% 7,660.06 3,000.00 4,660.06 GE Corporate Note 07 /29/10 511,955.00 01/08/13 63 831 894 1.791% 1,582.61 1,582.61 FBLB(9) Coupon Note 07129110 1,506,480.00 01/12/13 63 835 898 1.218% 3,167.07 3,167.07 FNMA (6) Coupon Note 02/09/10 1,005,850.00 01/28113 233 851 1084 1.820% 11,686.05 9,623.61 2,062.44 FNMA(7) Coupon Note 03/25/10 998,580.00 03/25/13 189 907 1096 1.899% 9,819.21 9,250.00 569.21 FNMA(8) Coupon Now 06/11/10 1,500,000.00 06/10/13 111 984 1095 1.830% 8,347.81 8,347.81 FHLMC(3) Coupon Note 08/18110 1,252,400.00 11/18/13 43 1145 1188 1.339% 1,975.60 1,975.60 FNMA(1) Coupon Note 07/08/10 750,000.00 07/07/15 84 1741 1825 3.712% 6,407.01 6,407.01 FHLMC(2) Coupon Note 09/24/10 2,000,000.00 09 /24/15 6 1820 1826 2.318% 762.08 762.08 Subtotal 44,489,355.48 Uai,m MM 969,976.03 30 30 0.05% 39.86 39.86 Purchased interest 2,373.45 LAW N/A 06/30110 17,990,084.63 09/30/10 92 0 92 0.50% 26,224.25 26,224.25 $63,451,789.59 387 1.88% $2,489,212.16 $2,327,214.95 $161,99221 Maturity Profile Amount Percent 0 -1 year $36,818,355.53 58.03% 1 -2 years $13,560,454.06 21.37% 2 -3 years $9,070,580.00 14.30% 3 -5 years $4,002,400.00 6 $ 63,451,789.59 100.00 Market to Cost PositiouReport Amortized Market Unrealized * Somve: Treasury and Agency Obligations - Union Bank of California Institution Cost Value* Gain (Lo LAIF balances per Local Agency lavestmentFlwd monthly statement- Union Back Assets $44,489,355.48 $45,066,835.00 577,479.52 Union MM 969,976.03 969,976.03 0.00 Purchased Interest 2,373.45 2,373.45 0.00 LAIF 17,990,084.63 17,990,084.63 0.00 Totals: $63,451,789.59 $64,029,269.11 $577,479.52 (1) Callable quattedy beg. Oinli I Coupon rate increases 1% annually (3) Callable once on 8 /18 111 (4) Callable once on 11/5110 (5) Callable once on 12/28/10 (6) Callable once on 01/28/11 page 5 Town of Los Gatos Investment Report for the month ended August 31, 2010 Prepared Linda L. Speicher, Projec t Manager y 02/10/11 Town of Los Gatos Summary Investment Information August 31, 2010 Weighted Average Portfolio Yield: 1.75% Weighted Average Maturity (days) This Month Last Month One year a¢o Portfolio Balance $70,877,094 $71,989,370 $75,673,488 Benchmarks/ References: Town's Average Yield 1.75% 1.88% 2.14% LAIF Yield for month 0.51% 0.53% 0.93% 3 mo. Treasury 0.15% 0.15% 0.15% 6 mo. Treasury 0.19% 0.20% 0.24% 2 yr. Treasury 0.50% 0.67% 1.12% 5 yr. Treasury (most recent) 1.37% 0.18% 2.49% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (08/20/10) 0.88% 2 yr. Fannie Mae (08/30/10) 0.70% 344 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 Portfolio Maturity Profile 3 -5 years 2 -3 years 3% 14% ........: \ §I£I§ 4a 1 481g5 ggF' 1 -2 eon 22% lycnr a. 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 August 31,2010 Month YID Fund Balances- Beginning ofMonth/Period $71,989,369.98 $73,918,287.52 Receipts 1,614,726.56 4,152,760.60 Disbursements ( 2,727,002.18 ) (7.193,953.76) Fund Balances- End ofMonMeriod $70,877,094.36 $70,877,094.36 Portfolio Allocation Union MM $2,886,875.02 US Govt Agencies 42,492,138.77 Local Agency Investment Fund 20.990,084.63 Subtotal - Investments 66,369,098.42 Reconciled Demand Deposit Balances 4,507.995.94 Total Treasurer's Fund $ 70,877,094.36 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 include 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. 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Los Gatos . Non- Treasury Restricted Fund Balances August 31, 2010 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $279,978.62 $385.75 $280,364.37 Nom t Certificates of Participation Reserve Fund (Lot 4) 254,13616 0.00 254,136.26 Norm Cert. of Participation Lease Payment Fund (Lot 4) 232,125.00 0.00 232,125.00 0.00 Nwe3 Cert. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251.19 Neto4 Cert. Of Participation 2002 Series A Interest Fund 469,018.75 0.00 469,018.75 0.00 Nete 4 Cert. of Participation 2002 Series A Const Fund 146,240.21 201.66 146,441.87 New 4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note 5 COP 2010 Library Lease Fund 0.00 0.00 0.00 Notes COP 2010 Library ACQ Construction Fund 14,815,998.95 0.00 14,815,998.95 Notes COP 2010 Library COI Fund 25,875.64 0.00 20,500.00 5,375.64 Note 5 COP 2010 Library Good Faith 0.00 0.00 0.00 Nate 6 Total Restricted Funds: $ 18,186,687.12 $0.00 $587.41 $721,643.75 $17,465,630.78 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 include 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. 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the lease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Los Gatos Statement of Interest Earned August 31, 2010 Current Fiscal Month Year to Date Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments July 2010 August2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 $142,754.59 $234,003.39 149,268.41 149,268.41 ( 190,678.75 ) ( 189,965.15 ) $ 101,344.25 $ 193,306.65 193,306.65 91,962.40 101,344.25 Page 4 page 5 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report August 31, 2010 Deposit Amortized Matnity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Date Elapsed Matmitv Invested Maturity Earned Received Acemed USTreamq Note 05/31/07 737,226.56 10115110 1188 45 1233 4.801% 115,201.00 91,618.85 23,582.15 FFCB Coupon Note 12/07/07 2,032,140.00 11/08/10 998 69 1067 3.715% 206,419.21 208,072.22 (1,653.01) FBLB Coupon Note 03/23/09 1,040,160.00 12/10/10 526 101 627 1.485% 22,259.71 46,930.56 (24,670.85) FFCB Coupon Note 01/18/07 756,922.50 01/18/11 1321 140 1461 3.175% 86,977.13 65,625.00 21,352.13 FFCB Coupon Note 11128/07 2,062,000.00 02/18/11 1007 171 1178 3.840% 218,452.23 265,416.67 (46,964.44) USTreasury Note 06/12/09 1,987,187.50 03/31/11 445 212 657 0.875% 21,198.94 14,009,56 7,189.38 FNMA Coupon Note D9129106 1,516,485.00 04115111 1432 227 1659 4.874% 289,983.84 272,479.17 17,504.67 Treasury Note 1VI6109 753,515.63 05/31/11 288 273 561 0.568% 3,377.07 3,532.27 (155.20) FHLB Coupon Note 06/08/09 1,988,018.60 06/03/11 449 276 725 1.432% 35,020.06 22,187.50 12,832.56 USTreasury Note 08/05109 1,992,187.50 07/31/11 391 334 725 1.196% 25,523.80 19,673.91 5,849.89 Tmasoy Note 09/21/09 2,000,000.00 08/31/11 344 365 709 1.002% 18,887.01 18,839.78 47.23 USTreasury Note 10/19106 990,078.13 09/30/11 1412 395 1807 4.721% 180,819.52 155,151.10 25,668.42 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 993 447 1440 4.000% 220,373.09 212,183.33 8,189.76 FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1286 464 1750 4.959% 172,287.74 152,368.06 19,919.68 USTreasury Note 12/31/09 1,497,539.06 12/31/11 243 487 730 1.083% 10,797.42 7,500.00 3,297.42 FNMA Coupon Note 12/08/09 1,991,380.00 OV12 /12 266 499 765 1.073% 15,571.94 10,402.78 5,169.16 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 406 504 910 1.472% 16,583.06 19,777.78 (3,194.72) FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 1210 556 1766 4.743% 237,305.75 212,500.00 24,805.75 USTwasury Note 04/15/10 999,375.00 03/15112 138 562 700 1.054% 3,982.50 3,982.50 FFCB Coupon Nate 04/23/10 1,500,585.00 04/16/12 130 594 724 1.174% 6,274.50 6,274.50 FBLB Coupon Note 11/29/07 2,038,360.00 08115/12 1006 715 1721 4.170% 234,272.90 250,777.78 (16,504.88) GE Corporate Note 01/16/08 1,542,165.00 10/19/12 958 780 1738 4.587% 185,665.93 177,843.75 7,822.18 FIILMC(4) Corporate Nele 02/03/10 1,005,650.00 11/05112 209 797 1006 1.793% 10,324.77 5,111.11 5,213.66 FNMA(5) Coupon Note 04/28/10 999,900.00 12/28/12 125 850 975 1.804% 6,177.46 3,000.00 3,177.46 GE CorpomtcNole 07/29110 511,955.00 01108/13 33 861 894 1.791% 828.99 828.99 FHLB(9) Coupon Note 07/29/10 1,506,480.00 01/12/13 33 865 898 1.218% 1,658.94 1,658.94 FNMA (6) Coupon Note 02/09/10 1,005,850.00 01/28/13 203 881 1084 1.820% 10,181.41 9,623.61 557.80 FNMA(7) Coupon Note 03/25/10 998,580.00 03/25/13 159 937 1096 1.899% 8,260.61 8,260.61 FNMA(8) Coupon Note 06/11/10 1,500,000.00 06/10/13 81 1014 1095 1.830% 6,091.64 6,091.64 FBLMC(3) Coupon Notc 08/18/10 1,252,400.00 11 /19/13 13 1175 1188 1.339% 597.27 597.27 FNMA(1) Coupon Note 07/08/10 750,000.00 07/07/15 54 1771 1825 3.712% 4,118.79 4,118.79 Subtotal 42,489,355.48 Union MM 2,886,875.02 30 30 0.05% 118.64 118.64 Puchased interest 2,783.29 LAZE N/A 06/30/10 20,990,084.63 09130/10 62 30 92 0.51% 18,300.31 18,300.31 $66,369,098.42 344 1.75% $2,393,893.20 $2,244,624.79 $149,268.41 Maturity Profile Amount Percent 0 -1 year $40,745,586.23 61.39% _ 1 -2 years $14,550,532.19 21.92% 2 -3 years $9,070,580.00 13.67% 3 -5 years $2,002,400.00 3.02% $ 66,369,098.42 100.00 Market to Cost Position Report Amortized Market Unrealized * Source: Treasury and Agency Obligations- Union Bank of California institution Cost Value* Gain (Lo ss LAIF balances per Local Agency Investment Fund monthly stalemcnL Union Bank Assets $42,489,355.48 $43,110,565.00 621,209.52 Union MM 2,886,875.02 2,886,875.02 0.00 Purchased Interest 2,783.29 2,78129 0.00 LAIF 20,990,084.63 20,990,084.63 0.00 Totals $66,369,098.42 $66,990,307.94 $621,209.52 (1) Callable quarterly beg. 01/7/11 Coupon rate increases 1% annually (3) Callable once on 8/18/11 (4) Callable once on 1115110 (5) Callable once on 12/28/10 (6) Callable once on 01/28/11 page 5 Town of Los Gatos Investment Report for the month ended July 31, 2010 Prepared by x Linda L. Speicher, Prooj ect Manager 02/10/11 Town of Los Gatos Summary Investment Information July 31, 2010 Weighted Average Portfolio Yield: 1.88% Weighted Average Maturity (days) This Month Last Month One year aeo Portfolio Balance $71,989,370 $73,918,288 $80,887,202 Benchmarks/ References: Town's Average Yield 1.88% 1.92% 2.16% LAIF Yield for month 0.53% 0.53% 1.04% 3 me. Treasury 0.15% 0.16°/% 0.19% 6 me. Treasury 0.20% 0.22% 0.28% 2 yr. Treasury 0.67% 0.74% 1.08% 5 yr. Treasury (most recent) 1.80% 2.00% 2.69% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (07/09/10) 1.26 2 yr. Fannie Mae (06/09/10) 0.97% 365 Portfolio Maturity Profile 3 -5 years 2 -3 years 1% 19% .. � E . Sb G� £§ 1- 2years ( £ 2'£ .A 58 % 22/0 ft §' `.i£`E :�7�5 £:tY;. /eE: Q 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, 2010 Fund Balances- Beginning ofMonth/Petiod Receipts Disbursements Fund Balances - End of Month/Period Month YTD $73,918,287.52 $73,918,287.52 2,538,034.04 2,538,034.04 ( 4,466,951.58 ) (4.466.951.58) $ 71,989,369.98 $ 71,989,369.98 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $260,137.90 44,976,343.77 20,990,084.63 66,226,566.30 5.762,803.68 Total Treasurer's Fund $ 71,989,369.98 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 include 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. 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the tease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Las Gatos Non - Treasury Restricted Fund Balances July 31, 2010 Previous Ending Balance De posits Interest Withdrawals Balance Non- Treasury Funds: Downtown Parking District 12/20/02 $279,605.81 $372.81 $279,978.62 Note 1 Certificates of Participation Reserve Fund (Lot 4) 254,136.26 0.00 254,136.26 Now Cert. of Participation Lease Payment Fund (Lot 4) 211,354.17 20,770.83 0.00 232,125.00 Note 3 Cert. of Participation 2002 Series A Reserve Fund 686,251.19 5.85 686,257.04 Nnie 4 Can. OfParticipation 2002 Series A Interest Fund 0.00 469,018.75 0.00 469,018.75 Nme4 Cert. of Participalion 2002 Series A Const. Fund 146,240.21 0.00 146,240.21 Noe 4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 t,277,062.50 Nam 5 COP 2010 Library Lease Fund 0.00 0.00 0.00 Note s COP 2010 Library ACQ Construction Fund 14,815,998.95 0.00 14,815,998.95 Notes COP 2010 Library COI Fund 25,875.64 0.00 25,875.64 note 5 COP 2010 Library Good Faith 0.00 0.00 0.00 Nme 6 Total Restricted Funds: $ 17,696,524.73 $ 489,789.58 $378.66 $0.00 $ 18,186,692.97 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 include 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. 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 lease payments should the Town not make payment. Note 3: The lease payment fund receives the lease payments from the Town monthly for the tease of Lot 4. It holds the funds until payments on the certificates of participation are due semi - annually. Page 3 Town of Los Gatos Statement of Interest Earned July 31, 2010 Interest received from Investments Add: Interest accrued at end of period (see page 5) Less: Interest accrued at beginning of period Interest earned on investments Current Fiscal Month Year to Date $91,248.80 $91,248.80 190,678.75 190,678.75 ( 189,965.15 ) ( 189,965.15 ) $ 91,962.40 $ 91,962.40 Interest by Month July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 91,962.40 91,962.40 Page 4 page 5 Town of Los Gatos inactive Deposits by Institution Market to Cost Positou Report July 31, 2010 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Instituti on Scantily Date Cost Date Else sed Maturi Invested Maturity Famed Received Accrued FHLB Coupon Note 01/12/07 1,487,205.00 08/10/10 1296 10 1306 4.960% 261,917.58 216,983.33 44,934.25 FHLB Coupon Note 03/23109 1,049,400.00 08116110 495 16 511 1.284% 18,273.36 43,604.17 (25,330.81) USTmasory Note 05/31107 737,226.56 10115110 1157 76 1233 4.801% 112,194.91 91,618.85 20,576.06 FFCB Coupon Note 12/07/07 2,032,140.00 11/08/10 967 100 1067 3.715% 200,007.39 208,072.22 (8,064.83) FHLB Coupmr Note 03/23/09 1,D40,160.00 12/10/10 495 132 627 1.485% 20,947.82 46,930.56 (25,982.74) FFCB Coupon Note 01/18/07 756,922.50 01/18/11 1290 171 1461 3.175% 84 ,936.04 65,625.00 19,311.04 FFCB Coupon Note 11/28 /07 2,062,000.00 02/18/11 976 202 1178 3.840% 211,727.29 216,666.67 (4,939.38) USTmasury Note 06112/09 1,987,187.50 03/31/11 414 243 657 0.875% 19,722.16 14,009.56 5,712.60 FNMA Coupon Note 09/29/06 1,516,485.00 04/15/11 1401 258 1659 4.874% 283,706.26 272,479.17 11,227.09 Treosury Note 11116/09 753,515.63 05/31111 257 304 561 0.568% 3,013.57 3,532.27 (518.70) FBLB Coupon Note 06108/09 1,988,018.60 06/03/11 418 307 725 1.432% 32,602.20 22,187.50 10,414.70 USTreasury Note 08105109 1,992,187.50 07!31/11 360 365 725 1.196% 23,500.17 9,673.91 13,826.26 Treasury Note 09121/09 2,00,000.00 001111 313 396 709 1.032% 17,699.51 8,839.78 8,859.73 USTteasury Note 10/19/06 990,078.13 09/30/11 1381 426 1807 4.721% 176,849.68 155,151.10 21,698.58 FFCB Coupou Nole 12/12/07 2,025,080.00 11/21/11 962 478 1440 4.000% 213,493.37 212,183.33 1,310.04 FFCB Coupon Note 02/22/07 986,080.00 12108/11 1255 495 1750 4.959% 168,134.61 152,368.06 15,766.55 USTreasary Now 12/31/09 1,497,539.06 12/31 111 212 518 730 1.083% 9,419.97 7,500.00 1,919.97 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 235 530 765 1.073% 13,757.16 10,402.78 3,354.38 FFCB Coupon Note 0721/09 1,012,800.00 01/17/12 375 535 910 1.472% 15,316.87 19,777.7R (4,460.91) FULB Coupon Note 05/09 /07 1,509,255.00 03/09112 1179 587 1766 4.743% 231,226.01 212,500.00 18,726.01 USTreasury Note 04/15/10 999,375.00 03/15/12 107 593 700 1.054% 3,087.88 3,087.88 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 99 625 724 1.174% 4,778.27 4,778.27 FELB(3) Coupon Note 11/06 /09 1,200,000.00 08/06/12 267 737 1004 0.740% 6,495.78 2,175.00 4,320.78 FDLB Coupon Note 1129107 2,038,360.00 08/15/12 975 746 1721 4.170% 227,053.76 204,527.78 22,525.98 GE Corporate Note 01/16/08 1,542,165.00 10/19/12 927 811 1738 4.587% 179,657.96 177,843.75 1,814.21 FHLMC(4) Corporate Not. 02/03/10 1,005,650.00 11/05/12 178 828 1006 1.793% 8,793.35 5,111.11 3,682.24 FNMA(5) Coupon Note 0428/10 999,900.00 12/28/12 94 881 975 1.804% 4,645.45 3,000.00 1,645.45 GE Corporate Note 0729/10 511,955.00 01/08113 2 892 894 1.791% 50.24 50.24 FHLB(9) Coupon Note 0729/10 1,506,480.00 01/12/13 2 896 898 1.218% 100.54 100.54 FNMA (6) Coopmr Note 02 /09 /1D 1,005,850.00 0128/13 172 912 1084 1.820% 8,626.61 9,623.61 (997.00) FNMA( ?) Coupon Note 0325/10 998,580.00 0325/13 128 968 1096 1.899% 6,650.05 6,650.05 FNMA(8) Coupon Notc 06/11/10 1,500,000.00 06 /10/13 50 1045 1095 1.830% 3,760.27 3,760.27 FNMA(1) Coupon Note 07/08/10 750,000.00 07/07/15 23 1802 1825 3.712% 1,754.30 1,754.30 Subtotal 44,973,560.48 Union MM 260,137.90 30 30 0.05% 10.69 10.69 Purchased Interest 2,783.29 LAIF N/A 06/30/10 20,990,084.63 09/30/10 31 61 92 0.53% 9,154.96 9,154.96 $66,226,566.30 365 1.88% $2,583,066.04 $2,392,387.29 $190,678.75 Maturity Pmfde Amount percent 0 -1 year $38,655,454.11 58.37% 1 -2 years $14,512,172.19 21.91% 2 -3 years $12,308,940.00 18.59% 3 -5 years $750,000.00 1.13% $ 66,226,566.30 100.00% Market to Cost Position Report Amortized Market Unrealized ' Source: Treasury and Agency Obligations - Union Bank of California Institution Cost Values' Gain .oss LAU balances per Local Agency Lrvestment Fuad monlhlys4alemeat Union Bank Assets $44,973,560.48 $45,604,212.50 630652.02 UniouMM 260,137.90 260,137.90 0.00 Purchased Interest 2,783.29 2,783.29 0.00 LAW 20,990,084.63 20,990,084.63 0.00 Totals: $66,226,566.30 $66,857,218.32 $630,652.02 (1) Callable quarterly beg. 0117/11 Coupon rate increases 1% annually (3) Callable Dace on 816110 (4) Callable once on 1115110 (5) Callable once on 1228/10 (6) Callable once on 01/28/11 page 5