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2011051602 - Third Quarter Investment Report for FY2010-11 January - March 20114W N OF COUNCIL AGENDA REPORT X0 9 CASE DATE: MAY 6, 2011 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER MEETING DATE: 05/16/11 ITEM NO. SUBJECT: THIRD QUARTER INVESTMENT REPORT FOR FY 2010/11 (JANUARY THROUGH MARCH 2011) RECOMMENDATION Accept attached Third Quarter Investment Report for FY 2010/11. DISCUSSION Attached for your consideration is the third quarter investment report for FY 2010/11. The Town's overall investment rate of return has dropped during the current quarter from 1.81 % to 1.72% as older investments have continued to mature. This rate continues to be higher than the current LAIF rate of .5 %. The strategy for the foreseeable future continues to be to remain fairly short term and to invest mostly in callable agency bonds in order to attempt to pick up a few basis points over non - callable agencies and treasuries. FISCAL IMPACT None Attachment: Third Quarter Investment Report for FY 2010/11 (January through March 2011) PREPARED BY : STEVE CONWAY Finance & Administrative Services Director/ Town Treasurer Reviewed by: Town Manager " $ . Assistant Town Manager Town Attornelv Clerk_Finance Community Development Revised: 5/9/11 8:56 AM Reformatted: 5/30102 Tans PAGE INTENTIONALLY LEFT BLANK Town of Los Gatos Investment Report for the month ended March 31, 2011 Prepared / Linda L. Speicher, Project Manager l / / v im 05/05/11 Torun of Los Gatos Summary Investment Information March 31, 2011 Weighted Average Portfolio Yield: 1.72% Weighted Average Maturity (days) 481 This Month Last Month One year a¢o Portfolio Balance $71,764,763 $69,862,777 $71,142,101 Benchmarks/ References: Town's Average Yield 1.72% 1.75% 2.07% LAIF Yield for month 0.50% 0.51% 0.55% 3 mo. Treasury 0.10% 0.15% 0.15% 6 mo. Treasury 0.17% 0.17% 0.24% 2 yr. Treasury 0.79% 0.75% 1.00% 5 yr. Treasury (most recent) 2.26% 2.19% 2.61% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (02/01/11) 1.27% 2 yr. Freddie Mac (02/04/11) 0.75% 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 March 31, 2011 Fund Balances- Beginning ofMonth/Period Receipts Disbursements Fund Balances - End of Month/Period Month YTD $69,862,777.26 $73,918,287.52 4,996,135.28 35,434,064.75 (3,094,149.57) (37,587,589.30) $ 71,764,762.97 $ 71,764,762.97 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $268,985.71 45,636,380.72 14.033.705.29 59,939,071.72 11.825.691.25 Total Treasurer's Fiord $ 71,764,762.97 Local Agsncylnvcstmenr rund 23.4 Treasury, Agencies, & Corp. Notes 57.8 page 2 Portfolio Investment Allocation Union MM 0.4 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 setup for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District 'T, as well as Reserve Funds setup as required by the original Bond resolution. Note 2: The reserve fund was a requirement of the original certificates ofpaoicipation agreement when Lot 4 was built. It helps t0 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 March 31, 2011 Previous Ending Balance De posits Interest withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $282,236.15 $158.05 $282,394.20 Note t Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 2.55 254,136.26 Note 1 Cert. of Participation Lease Payment Fund (Lot 4) 136,127.13 21,124.58 0.00 157,251.71 Note 3 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 Note4 Cert. of Participation 2002 Series A Const. Fund 58,870.51 0.00 58,870.51 Now 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 Note 5 COP 2010 Library ACQ Construction Fund 1 1,081,702.31 0.00 664,540.03 10,417,162.28 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: $ 13,776,388.60 $ 21,124.58 $158.05 $ 664,542.58 $ 13,133,128.65 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 setup for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District 'T, as well as Reserve Funds setup as required by the original Bond resolution. Note 2: The reserve fund was a requirement of the original certificates ofpaoicipation agreement when Lot 4 was built. It helps t0 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 March 31, 2011 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 Mo Year to Date $118,194.66 $805,993.93 196,000.90 196,000.90 ( 211,291.12 ) ( 189,965.15 ) $ 102,904.44 $ 812,029.68 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 78,872.97 96,777.80 64,633.38 79,451.57 102,904.44 812,029.68 Page 4 page 5 Toren of Los Gatos Inactive Deposits by Institution Market to Cost Position Reporl Marcb 31, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest krterest Interest Ins06rkon Security Data Cost Date Elapsed Mated/ Invested M.tanty Earned Received Accrued FNMA Coupon Note 09/29/06 1,516,485.00 _ 04/15/11 1644 15 1659 4.874% 332,914.41 310,916.67 21,997.74 Treasury Note 11/16/09 753,515.63 05/31/11 500 61 561 0.568% 5,862.97 6,813.52 (950.55) FHLB Coupon Note 06108109 1,988,018.60 06/03/11 661 64 725 1.432% 51,555.15 33,437.50 18,117.65 USTreasury Note 08/05109 1,992,187.50 07/31/11 603 122 725 1.196% 39,36239 29673 -91 9,688.88 Treasury Note 09/21/09 2,000 000.00 08131/11 556 153 709 1.002% 30,526.68 28 839.78 1,686.90 USTreasuy New 10119106 990,078.13 09/30/11 1624 183 1807 4.721% 207,968.05 200,151.10 7,816.95 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1205 235 1440 4.000% 267,421.52 255,683.33 11,738.19 FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1498 252 1750 4.959% 200,689.76 175,493.06 25,19630 USTreasury Note 12/31/09 1,497,539.06 12/31/11 455 275 730 1.083% 20,217.39 15,000.00 5,217.39 FNMA Coupon Note 12/08/09 1,991,380.00 01/12/12 478 287 765 1.073% 27,982.65 19,152.78 8,829.87 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 618 292 910 1.472% 25,242.19 29,777.78 (4,535.59) FHLB Coupon Note 05/09/07 1,509,255.00 03/09/12 1422 344 1766 4.743% 278,883.28 287,500.00 (8,616.72) USTreasury Note 04/15/10 999,375.00 03/31/12 350 366 716 1.054% 10,100.53 9,590.16 510.37 FFCB Coupon Note 04/23/10 1,500,585.00 04/16/12 342 382 724 1.174% 16,506.76 8,500.00 8,006.76 FHLB Coupon Note 11/29/07 2,038,360.00 08/15/12 1218 503 1721 4.170% 283,642.54 297,027.78 (13,385.24) GB Corporate Note 01116108 1,542,165.00 10/19/12 1170 568 1738 4.587% 226,752.76 217,218.75 9,534.01 FFCB Coupon Note 11/10/10 1,498,830.00 11/09/12 141 589 730 0.541% 3,132.39 3,132.39 GE Corporate Note 07/29/10 511,955.00 01/08/13 245 649 894 1.791% 6,154.61 6,183.33 (28.72) FHLMC Coupon Note 11/22/10 999,750.00 03/07/13 129 707 836 0.962% 3,399.10 2,744.44 654.66 Treasury Coupon Note 03/31/11 1,997,968.75 03/31/13 0 731 731 0.676% 0.00 0.00 FIBMMC Coupon Note 03/25/11 1,016,520.00 04/15/13 6 746 752 0.812% 135.68 135.68 FNMA Callable Note 06/11/10 1,500,000.00 06/10/13 293 802 1095 1.830% 22,035.21 7,458.33 14,576.88 FBLB Callable Note 07/29/10 1,506,480.00 07/12/13 245 834 1079 1.218% 12,316.40 9,508.33 2,808.07 FBLB Coupon Note 02/25/11 1,999,080.00 08/16/13 34 869 903 1.271% 2,366.80 2,366.80 FHLMC Callable Note 08/18/10 1,252,400.00 11/18/13 225 963 1188 1.339% 10,337.45 8,750.00 1,587.45 FFCB Coupon Note 01/24/11 999,900.00 01/24/14 66 1030 1096 1.393% 2,518.60 2,518.60 FHLMC Coupon Note 01/28/11 999,750.00 01/28/14 62 1034 1096 2.310% 3,922.85 3,922.85 FHLMC Callable Now 02/04/11 1,000,000.00 02/04/14 55 1041 1096 2.002% 3,016.71 3,016.71 FNMA CallableNote 07/08/10 750,000.00 07/07/15 266 1559 1825 3.712% 20,288.88 4,195.31 16,093.57 FNMA Coupon Note 11/10/10 1,503,225.00 09116115 141 1630 1771 0.955% 5,545.66 5,250.00 295.66 FHLMC Callable Note 09/24/10 2,000,000.00 09/24/15 188 1638 1826 2.318% 23,878.58 12,500.00 11,378.58 FBLMC Callable Note 10/28/10 750,000.00 10/28/15 154 1672 1826 2.100% 6,645.21 6,645.21 FHLB Coupon Note 12/16/10 999,750.00 12/16/15 105 1721 1826 2.947% 8,475.55 8,475.55 Subtotal 45,628,512.67 UninaMM 268,985.71 30 30 0.05% 11.05 11.05 Purchased krterest 7,868.05 LAIF N/A 12/31/10 14,033,705.29 03/31/11 90 0 90 0.50% 17,556.58 17,556.58 859,939,071.72 481 1.72% 82,177,366.76 $1,981,365.86 $196,000.90 Maturity Profile Arnaunt Peroent 0 -1 year $32,572,977.97 54.34% 1 -2 years 811,088,988.75 18.50% 2 -3 years 810,274,130.00 17.14% 3 -5 years $6,002,975.00 10.02% 8 59,939,071.72 100.00% Market to Cost Position Report Amortized Market Unrealized *Spume: Treasury and Agency Obligations - Union Bank of California krstikrtion Cost Value* Gain Loss LAIF balances per Local Agency Investment Fund monthly statement. Union Bank Assets 845,628,512.67 $45,927,210.00 298,697.33 UnimrMM 268,985.71 268,985.71 0.00 Purchased Interest 7,868.05 7,868.05 0.00 LAIF 14,033,705.29 14,033,705.29 0.00 Totals: $59,939,071.72 $60,237,769.05 $298,697.33 - page 5 Town of Los Gatos Investment Report for the month ended February 28, 2011 Prepared Linda L. Speicher, Projec t Manager 05/05/11 Town of Los Gatos Summary Investment Information February 28, 2011 Weighted Average Portfolio Yield: 1.75% Weighted Average Maturity (days) This Month Last Month One year a¢o Portfolio Balance $69,862,777 $69,991,632 $70,957,932 Benchmarks/ References: Town's Average Yield 1.75% 1.82% 2.11% LAIF Yield for month 0.51% 0.54% 0.58% 3 mo. Treasury 0.15% 0.15% 0.10% 6 mo. Treasury 0.17% 0.17% 0.19% 2 yr. Treasury 0.75% 0.65% 0.90% 5 yr. Treasury (most recent) 2.19% 2.04% 2.40% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Fannie Mae (02/01/11) 1.27% 2 yr. Freddie Mac (02104/11) 0.75% 488 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 sixmonths. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances February 28,2011 Find Balances - Beginning of Month/Period Receipts Disbursements Fund Balances- End ofMonth/Period Month YTD $69,991,632.49 $73,918,287.52 2,796,952.59 30,437,929.47 ( 2,925,807.82 ) (34,493,439.73) $ 69,862,777.26 $ 69,862,777.26 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances $182,924.52 45,604,692.81 14.033 705.29 59,821,322.62 10.041.454.64 Total Treasurer's Find $ 69,862,777.26 Local Agency Investment Fund 73.59 Treasury, Agencies, & Corp. Notes 57.8% page 2 Portfolio Investment Allocation Union MM 0.3% These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities. Nate 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- ammalty. Page 3 Town of Los Gatos Non- Treasnry Restricted Fund Balances February 28, 2011 Previous Ending Balance De posits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12 /20102 $282,061.27 $174.88 $282,236.15 Nom i Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 254,138.81 Note 2 Curt. of Participation Lease Payment Fund (Lot 4) 126,750.00 21,124.58 2.55 11,750.00 136,127.13 Nem3 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 209,556.25 0.47 209,556.72 0.00 Not, 4 Cert. of Participation 2002 Series A Coast Fund 58,870.51 0.00 58,870.51 Note COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note s COP 2010 Library Lease Fund 423,160.69 0.00 423,160.69 0.00 Not, 5 COP 2010 Library ACQ Construction Fund 11,823,532.86 0.00 741,830.55 11,081,702.31 Note s COP 2010 Library COI Fund 0.00 0.00 0.00 Notes COP 2010 Library Good Faith 0.00 0.00 0.00 Nom 6 Total Restricted Funds: $ 15,141,384.08 $ 21,124.58 $177.90 $ 1,386,297.96 $ 13,776,388.60 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities. Nate 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- ammalty. Page 3 Town of Los Gatos Statement of Interest Earned February 28, 2011 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 $52,200.77 $687,799.27 211,291.12 211,291.12 ( 184,040.32 ) ( 189,965.15 ) $ 79,451.57 $ 709,125.24 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 78,872.97 96,777.80 64,633.38 79,451.57 709,125.24 Page 4 Market to Cost Position Report Towu of Las Gatas Amortized Market Unrealized •Source: Treasury and Agency Obligatimus - Uruon Brunk ofCnlifonua Institution Cost Value* Gain (Los s LAIF balances pet Agency Investment Fund montidy statement. Union Bonk Assets $45,599,791.42 845,953,952.50 Iuneflve Deposits by IustituHan 182,924.52 182,924.52 0.00 Purchased Interest 4,901.39 4,901.39 0.00 LAIF 14,033,705.29 14,033,705.29 Market to Cost Position Report Totals $59,821,322.62 $60,175,483.70 $354,161.08 February 28, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Secarity Date Cost Dote Elapsed Maturi Invested Marini Earned Received Accrued FBLB Coupon Note 02/25/11 1,999,080.00 08/16/13 3 900 903 1.271% 208.84 208.84 USTreasnry Note 06/12/09 1,987,187.50 03/31/11 626 31 657 0.875% 29,821.42 22,759.56 7,061.86 FNMA Coupon Note 09129/06 1,516,485.00 04/15/11 1613 46 1659 4.874% 326,636.83 310,916.67 15,720.16 Treasury Note 11/16/09 753,515.63 05/31/11 469 92 561 0.568% 5,499.47 6,813.52 (1,314.05) FBLB Coupon Note 06/08/09 1,988,018.60 06/03/11 630 95 725 1.432% 49,137.28 33,437.50 15,699.78 USTreasury Note 08/05/09 1,992,187.50 07/31/11 572 153 725 1.196% 37,339.16 29,673.91 7,665.25 Treasury Note 09/21109 2,000,000.00 0881111 525 184 709 1.002% 28,824.66 28,839.78 (15.12) USTreasury Note 10/19106 990,078.13 09/30111 1593 214 1807 4.721% 203,998.22 177,651.10 26,347.12 FFCB Coupon Note 12/12/07 2,025,080.00 11/21/11 1174 266 1440 4.000% 260,541.80 255,683.33 4,858.47 FFC13 Coupon Note 0222/07 986,080.00 12/08/11 1467 283 1750 4.959% 196,536.63 175,493.06 21,043.57 USTreasury Note 12/31/09 1,497,539.06 12131/11 424 306 730 1.083% 18,839.94 15,000.00 3,839.94 FNMA Coupon Note 12/08/09 1,991,380.00 01112/12 447 318 765 1.073% 26,167.88 19,152.78 7,015.10 FFCB Coupon Note 07/21/09 1,012,800.00 01/17/12 587 323 910 1.472% 23,976.00 29,777.78 (5,801.78) FBLB Couponn Note 05/09/07 1,509,255.00 03/09/12 1391 375 1766 4.743% 272,803.55 250,000.00 22,803.55 USTesamry Note 04/15/10 999,375.00 03131/12 319 397 716 1.054% 9,205.91 4,590.16 4,615.75 FFCB Coupon Note 04/23/10 1,500,585.00 04/16112 311 413 724 1.174% 15,010.54 8,500.00 6,510.54 FIILB Coupon Note 1129/07 2,038,360.00 08/15112 1187 534 1721 4.170% 276,423.40 297,027.78 (20,604.38) GE Corporate Note 01116108 1,542,165.00 10/19/12 1139 599 1738 4.587% 220,744.78 217,218.75 3,526.03 FFCB Coupon Note 11/10 /10 1,498,830.00 11/09/12 110 620 730 0.541% 2,443.71 2,443.71 GE Corporate Note 07/29/10 511,955.00 01/08/13 214 680 894 1.791% 5,375.86 6,183.33 (807.47) FHLMC Coupon Note 11/22/10 999,750.00 03/07/13 98 738 836 0.962% 2,582.26 2,582.26 FNMA Callable Note 03/25/10 998,580.00 03/25/13 340 756 1096 1.899% 17,664.20 9,250.00 8,414.20 FNMA Callable Note 06/11110. 1,500,000.00 06/10/13 262 833 1095 1.830% 19,703.84 7,458.33 12,245.51 FHLB Callable Note 07/29110 1,506,480.00 07/12/13 214 865 1079 1.218% 10,758.00 9,508.33 1,249.67 FHLMC Callable Note 08/18110 1,252,400.00 11/18/13 194 994 1188 1.339% 8,913.18 8,750.00 163.18 FFCB Coupon Note 0124/11 999;900.00 0124/14 35 1061 1096 1.393% 1,335.62 1,335.62 FHLMC Coupon Note 0128/11 999,750.00 0128/14 31 1065 1096 2310% 1,961.43 1,961.43 FNMA Callable Note 07/08/10 750,000.00 07/07/15 235 1590 1825 3.712% 17,924.38 4,195.31 13,729.07 FNMA CmuporiNote 11/10/10 1,503,225.00 09/16/15 110 1661 1771 0.955% 4,326.41 4,326.41 FHLMC Cellable Note 0924/10 2,000,000.00 09/24/15 157 1669 1826 2.318% 19,941.15 19,941.15 FHLMC Callable Note 1028110 750,000.00 10/28/15 123 1703 1826 2.100% 5,307.53 5,307.53 FBLB Coupon Note 12/16/10 999,750.00 12/16/15 74 1752 1826 2.947% 5,973.25 5,973.25 FHLMC Callable Note 02/04/11 1,000,000.00 02104/14 24 1072 1096 2.002% 1,316.38 1,316.38 Subtotal 45,599,791.42 Union MM 182,924.52 30 30 0.05% 7.52 7.52 Purchased bterest 4,901.39 LAIF N/A 12/31/10 14,033,705.29 03/31/11 59 31 90 0.51% 11,921.09 11,921.09 $59,821,322.62 488 1.75% $2,139,172.10 53,927,880.98 $211,291.12 Maturity Profile Annount Percent 0 -1 year $32,961,882.62 55.10% 1 -2 years $9,600,525.00 16.05% 2 -3 years $11,255,940.00 18.82% 3 -5 years $6,002,975.00 10.03% $ 59,821,322.62 100.00% Market to Cost Position Report Amortized Market Unrealized •Source: Treasury and Agency Obligatimus - Uruon Brunk ofCnlifonua Institution Cost Value* Gain (Los s LAIF balances pet Agency Investment Fund montidy statement. Union Bonk Assets $45,599,791.42 845,953,952.50 354,161.08 UuuonMM 182,924.52 182,924.52 0.00 Purchased Interest 4,901.39 4,901.39 0.00 LAIF 14,033,705.29 14,033,705.29 0.00 Totals $59,821,322.62 $60,175,483.70 $354,161.08 page 5 Town of Los Gatos Investment Report for the month ended January 31, 2011 Prepared by Linda L. Speicher, Project Manager 05/05/11 Town of Los Gatos Summary Investment Information January 31, 2011 Weighted Average Portfolio Yield 1.82% Weighted Average Maturity (days) 468 This Month Last Month Portfolio Balance $69,991,632 $70,335,484 Benchmarks/ References One year aeo $71,986,737 Town's Average Yield 1.82% 1.81% 2.16% LAID Yield for month 0.54% 0.46% 0.56% 3 mo. Treasury 0.15% 0.18% 0.06% 6 me. Treasury 0.17% 0.23% 0.14% 2 yr. Treasury 0.65% 0.74% 0.88% 5 yr. Treasury (most recent) 2.04% 2.15% 2.25% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mae (O1 /06/11) 1.38% 2 yr. Fannie Mae (01/13/11) 0.82% 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 January 31, 2011 Fund Balances - Beginning of Month/Period Receipts Disbursements Fired Balances - End of MontWetiod Month YTD $70,335,483.75 $73,918,287.52 3,926,226.63 27,640,976.88 ( 4,270,077.89 ) (31 567 631.91) $ 69,991,632.49 $ 69,991,632.49 Portfolio Allocation: Union MM US Govt Agencies Local Agency Investment Fond Subtotal - Investments Reconciled Demand Deposit Balances $1,068,833.37 44,666,987.81 14.033.705 29 59,769,526.47 10.222.106.02 Total Treasurer's Fund $ 69,991,632.49 Local Agency 7nvesonenl Fund 23.551 Treasury, Agencies, & Corp. Notes 57.8% page 2 Portfolio Investment Allocation Union MM 1.8% These accounts are not part of Ore 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 January 31, 2011 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12120/02 $281,887.66 $173.61 $282,061 27 note t Certificates of Participation Reserve Fund (Lot 4) 254,138.81 0.00 254,138.81 Note 2 Celt. of Participation Lease Payment Fund (Lot 4) 105,625.00 21,125.00 0.00 126,75000 Note 3 Cart. of Participation 2002 Series A Reserve Fund 686,251.19 0.00 686,251.19 Nme 4 Cart. Of Participation 2002 Series A Interest Fund 0.00 209,556.25 0.00 209,556.25 Note Cart. of Participation 2002 Series A Const. Fund 121,254.57 138.80 62,522.86 58,870.51 Note 4 COP 2010 Library Reserve Fund 1,277,062.50 0.00 1,277,062.50 Note s COP 2010 Library Lease Fund 0.00 423,160.69 0.00 423,160.69 We 5 COP 2010 Library ACQ Construction Fund 12,576,360.35 0.00 752,827.49 11,823,532.86 Note 5 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: $ 15,302,580.08 $ 653,841.94 $312.41 $ 815,350.35 $ 15,141,384.08 These accounts are not part of Ore 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 January 31, 2011 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 $77,154.29 $635,598.50 184,040.32 184,040.32 ( 196,561.23 ) ( 189,965.15 ) $ 64,633.38 $ 629,673.67 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 78,872.97 96,777.80 64,633.38 629,673.67 Page 4 Maket to Cost Positiou Report Teen of Los Gatos Amortized Markel Unrealized * Source: Treasury and Agency 011igations - Union Bank of Califonie bvsstilution Cost Value* Gain (Loss) LAIF balances per Local Agency bmaursenl Fund mmdldv statement Union Bank Assets $44,662,711.42 $45,025,222.50 Inactive Deposits by Institution 1,068,833.37 1,068,833.37 0.00 Purchased interest 4,276.39 4,276.39 0.00 LAIF 14,033,705.29 14,033,705.29 Market to Cost Position Report Totals: 859,769,526.47 $60,132,037.55 $362,511.08 Jaunary 31, 2011 Deposit Amortized Maturity Days Days to Days Yield to Interest buterest Interest Institution Security Date Cost Date Elapsed Mahuily Invested Maturi Earned Received Accrued FFCB Coupon Nate 1128/07 2,062,000.00 02/18/11 1160 18 1178 3.840% 251,643.09 265,416.67 (13,773.58) USTreasury Note 06112/09 1,987,187.50 03131/11 598 59 657 0.875% 28,487.56 22,759.56 5,728.00 FNMA Coupon Note 09/29/06 1,516,485.00 04/15/11 1585 74 1659 4.874% 320,966.75 310,916.67 10,050.08 Treasury Note 11/16/09 753,515.63 05/31/11 441 120 561 0.568% 5,171.14 6,813.52 (1,642.38) FHLB Coupon Note 06/08/09 1,988,018.60 06/03/11 602 123 725 1.432% 46,953.40 33,437.50 13,515.90 USTreasury Note 08/05/09 1,992,187.50 07/31/11 544 181 725 1.196% 35,511.37 29,673.91 5,837.46 Treasury Note 09/21/09 2,000,000.00 08/31/11 497 212 709 1.002% 27,287.34 18,839.78 8,447.56 USTreasnry Note 10/19/06 990,078.13 09/30/11 1565 242 1807 4.721% 200,412.56 177,651.10 22,761.46 FFCB Coupon Note 12/12107 2,025,080.00 11/21/11 1146 294 1440 4.000% 254,327.86 255,683.33 (1,355.47) FFCB Coupon Note 02/22/07 986,080.00 12/08/11 1439 311 1750 4.959% 192,785.42 175,493.06 17,292.36 USTreasury Note 12/31/09 1,497,539.06 12/31/11 396 334 730 1.083% 17,595.80 15,000.00 2,595.80 FNMA Coupon Note 12/08109 1,991,380.00 01/12/12 419 346 765 1.073% 24,528.73 19,152.78 5,375.95 FFCB Cmnpon Note 07121/09 1,012,800.00 01/17/12 559 351 910 1.472% 22,832.34 29,777.78 (6,945.44) FHLB Cmnpon Note 05/09/07 1,509,255.00 03/09/12 1363 403 1766 4.743% 267,312.17 250,000.00 17,312.17 USTreasury Note 04/15/10 999,375.00 03/31/12 291 425 716 1.054% 8,397.87 4,590.16 3,807.71 FFCB Coupon Note 0423/10 1,5D0,585.00 04/16/12 283 441 724 1.174% 13,659.11 8,500.00 5,159.11 FHLB Coupon Note 1129/07 2,038,360.00 08/15112 1159 562 1721 4.170% 269,902.88 250,777.78 19,125.10 GE Corporate Note 01/16/08 1,542,165.00 10/19/12 1111 627 1738 4.587% 215,318.22 217,218.75 (1,900.53) FFCB Coupon Note 11/10/10 1,498,830.00 11/09/12 82 648 730 0.541% 1,821.67 1,821.67 GE Corporate Note 0729/10 511,955.00 01/08/13 186 708 894 1.791% 4,672.48 6,183.33 (1,510.85) FHLMC Coupon Note 11/22/10 999,750.00 03107/13 70 766 836 0.962% 1,844.47 '1,844.47 FNMA Coupon Note 03/25/10 998,580.00 03125/13 312 784 1096 1.899% 16,209.50 9,250.00 6,959.50 FNMA Coupon Note 06111/10 1,500,000.00 06/10/13 234 861 1095 1.830% 17,598.08 7,458.33 10,139.75 FHLB Coupon Note 07/29/10 1,506,480.00 07/12/13 186 893 1079 1.218% 9,350.41 9,508.33 (157.92) FBLMC Coupon Note 08118/10 1,252,400.00 11/18/13 166 1022 1188 1.339% 7,626.74 7,626.74 FFCB Coupon Note 01/24/11 999,900.00 01/24/14 7 1089 1096 1.393% 267.12 267.12 FHLMC Coupon Note 0128/11 999,750.00 0128/14 3 1093 1096 2.310% 189.82 189.82 FNMA Coupon Note 07/08/10 750,000.00 07/07/15 207 1618 1825. 3.712% 15,788.71 4,195.31 11,593.40 FNMA Coupon Note 11/10/10 1,503,225.00 09116115 82 1689 1771 0.955% 3,225.14 3,225.14 FHLMC Coupon Note 09124/10 2,000,000.00 09/24/15 129 1697 1826 2.318% 16,384.77 16,384.77 FHLMC Coupon Note 1028110 750,000.00 10/28/15 95 1731 1826 2.100% 4,099.32 4,099.32 FIILB Coupon Note 12/16/10 999,750.00 12116115 46 1780 1826 2.947% 3,713.10 3,713.10 Subtotal 44,662,711.42 Union MM 1,068,833.37 30 30 0.05% 43.92 43.92 Purchased Interest 4,27639 LAIF N/A 12/31/10 14,033,705.29 03/31/11 31 59 90 0.54% 6,409.11 6,409.11 $59,769,526.47 468 1.82% $2,312,337.97 $2,128,297.65 $184,040.32 Maturity Profile Amount Percent 0 -1 year $35,909,166.47 60.08% 1 -2 years $9,600,525.00 16.06% 2 -3 years $8,256,860.00 13.81% 3 -5 years $6,002,975.00 10.04% S 59,769,526.47 100.00% Maket to Cost Positiou Report Amortized Markel Unrealized * Source: Treasury and Agency 011igations - Union Bank of Califonie bvsstilution Cost Value* Gain (Loss) LAIF balances per Local Agency bmaursenl Fund mmdldv statement Union Bank Assets $44,662,711.42 $45,025,222.50 362,511.08 Union MM 1,068,833.37 1,068,833.37 0.00 Purchased interest 4,276.39 4,276.39 0.00 LAIF 14,033,705.29 14,033,705.29 0.00 Totals: 859,769,526.47 $60,132,037.55 $362,511.08 page 5