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2�pW N 0 SOS G A 0`' DATE: TO: FROM: SUBJECT: MEETING DATE: 08/19/13 ITEM NO: COUNCIL AGENDA REPORT August 4, 2013 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER FY 2012/13 QUARTERLY INVESTMENT REPORT (APRIL THROUGH JUNE 2013) RECOMMENDATION: Accept the attached Fourth Quarter Investment Report for FY 2012/13. DISCUSSION: Attached for your consideration is the Fourth Quarter Investment Report for FY 2012/13. During fiscal 2012/13 the Town's overall investment rate of return dropped from .97% to .66 %. This is still a much better rate of return than either LAIF or Treasuries. No rise in interest rates is expected for a couple of years. Overall, the Treasurer's Funds are now approximately $62,582,000, down substantially from the first pall of the fiscal year due to the transfer of approximately $15M of RDA money to the county as a result of the dissolution of the RDA and Due Diligence Reviews. The maturity profile shown on page 1 of the report is based on the final maturities of investments, not taking into account that many of the investments are callable bonds which more than likely will be called before their final maturity. Thus the actual average maturity of the investments is likely shorter than. the _1,073_ days- shown on- the .last page of the report. This has been part of the investment strategy for the last year, in order to be positioned to take advantage of higher rates when they do finally appear. FISCAL IMPACT: None Attachment: Fourth Quarter Investment Report for FY 2012/13 (April through June 2013) PREPARED BY: STEVE CONWAY Finance & Administrative Services Director/ Town Treasurer Reviewed by: fa Assistant Town Manager Town Attorney Finance N: \TRS \Staff Reports\2011 \Treasurer's Report - Q4 2012 2013.doc THIS PAGE INTENTIONALLY LEFT BLANK Town of Los Gatos Quarterly Investment Report (Month Ended June 30, 2013) Prepared by Linda L. Speicher, Project Manager 08/01/13 Town of Los Gatos Summary Investment Information June 30, 2013 Weighted Average Portfolio Yield: 0.66% Weighted Average Maturity (days) 1073 This Month Last Month One year ago Portfolio Balance $62 ,582,094 $62,001,292 $75,558,782 Benchmarks/ References: Town's Average Yield 0.66% 0,64% 0.97% LAIF Yield for month 0.25% 0.26% 0.37% 3 mo. Treasury 0.06% 0,05% 0.10% 6 mo. Treasury 0.11% 0.08% 0.15% 2 yr. Treasury 0.43% 0.28% 0.31 % 5 yr. Treasury (most recent) 1.48% 1.05% 0.75% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mae or Fannie Mae Reference Notes: 3 yr. Fannie Mae (05/17/13) 0.49% Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being. Compliance: The Town's investments are in compliance to ith 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 Pund Balances June 30, 2013 Month Fund Balances - Beginning of Month/Peniod $62,001,292.30 Receipts 4,548,495.70 Disbursements (3,967,694.30) Fund Balances - End of Month/Period $62,582,093,70 Portfolio Allocation: BNY MM $253,736.43 US Govt Agencies 47,103,283.99 Local Agency Investment Fund 4,149,984.68 Subtotal - Investments 51,507,005.10 Reconciled Demand Deposit Bahnices 11,075,088.60 Total Treasurer's Fund $62,582,093.70 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 0,49% 8.06% US Govt Agencies 91.45% YTD $75,558,782.33 42,601,584.91 (55,578,273.54) $62,582,093.70 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 includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District '3', as well as Reserve Funds set up as required by the original Bond resolution Note 4: The three original fiords for the Certificates of Participation 2002 Series A consist of canstruction funds which will be expended over the next few years, reserve fiords which will guarantee the payment of lease payments, and a third fiord for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment find for the life of the COP issue. The COI fund was closed in September 2014: Page 3 Town of Los Gatos Non - Treasury Restricted Fund Balances June 30, 2013 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $286,385.24 $61.65 $286,446.89 Note t Cell. of Participation 2002 Series A Reserve Fund 686,251.19 5.85 5.85 686,251.19 Note 4 Cert. Of Participation 2002 Set- A Lease Pymt Fund 0.00 0.00 0.00 Note 4 Cell. of Participation 2002 Series A Const. Fund 42,617.75 0.00 42,617.75 Nate 4 COP 2010 Library Reserve Fund 1,277,062,50 0.01 0.01 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 0.00 0.00 0.00 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 s Total Restricted Funds: $2,292,316.68 $0.00 $67.51 $5.86 $2,292,378.33 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: This account includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District '3', as well as Reserve Funds set up as required by the original Bond resolution Note 4: The three original fiords for the Certificates of Participation 2002 Series A consist of canstruction funds which will be expended over the next few years, reserve fiords which will guarantee the payment of lease payments, and a third fiord for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment find for the life of the COP issue. The COI fund was closed in September 2014: Page 3 Interest received from Investments Interest accrued /(prepaid) at end of period (see page 5) Interest accrued /(prepaid) at beginning of period Interest earned on investments Town of Los Gatos Statement of Interest Earned June 30, 2013 Interest by Month July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 Page 4 Current Fiscal Month Year to Date 61,192.04 496,952.83 - 107,515.26 - 107,515.26 - 91,945.62 - 2,568.42 $45,622.40 $392,005.99 $50,686.03 40,230.09 41,243.95 35,819.67 37,215.67 36,101.46 32,134.20 30,813.78 33,917.82 20,417.73 - 12,196.81 45,622.40 $392,005.99 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Repot June 30, 2013 Maturity Profile 0 -1 year 1 -2 years 2 -3 years 3 -5 years Market to Cost Position Repot Maturity Days Deposit Amortized Institution Security Date Cost TIAA Corporate Note 04/11/11 880,446.95 NY Life Coupon Note 01/25/12 2,041,000.00 FHLMC Coupon Note 09 /16/11 2,026,080.00 FNMA Coupon Note 10/07/11 1,296,875.00 FHI,B Coupon Note 01/25/13 2,511,725.00 Treasury Note 08/16/11 1,042,812.50 FNMA Callable Note 09 /09/11 2,000,000.00 FNIAA Callable Note 12/20/12 500,260.00 Berk Hath Coupon Note 01 /26/12 1,315,137.50 FNMA Callable Note 05/23/13 2,511,300.00 FNMA Callable Note 06/29/12 2,005,700.00 IBM Coupon Note 11/13/12 782,505.00 Treasury Note 08/16/11 1,025,390.63 SO Coupon Note 12/18/12 526,020.00 FNMA Callable Note 05/14/13 1,500,000.00 FNMA Callable Note 04/04/13 4,004,800.00 FHLMC Callable Note 12/20/12 1,009,900.()0 Berk Hath Coupon Note 01/11/13 509,280.00 FHLMC Callable Note 06 /08/12 2,007,700.00 FNMA Callable Note 06/14/13 2,012,840.00 FHLIvIC Callable Note 01/11/13 2,525,925.00 FNMA Callable Note 10/19/12 1,504,050.00 FNMA Callable Note 11/30/12 1,003,200.00 FN1\4A Callable Note 12/04/12 1,002,750.00 FFCB Coupon Note 10/18/12 1,996,960.00 FHLB Coupon Note 12/12/12 1,998,720.00 FNMA Callable Note 04 /17/13 1,004,400.00 FNMA Callable Note 05/06/13 3,056,250.00 AAPL Corporate Note 05 /16/13 991,680.01 ING Coupon Note 06/14/13 499,527.78 Subtotal 47 1233 47,093,235.37 BNY MM 1,062.33 253,736.43 Purchased Iuterest 87 1353 10,048.62 LAIF N/A 03/31/13 4,149,984,68 Maturity Profile 0 -1 year 1 -2 years 2 -3 years 3 -5 years Market to Cost Position Repot Maturity Days Days to Days Yield to Interest Interest Interest Date Elapse Maturit Invested Maturit Earned Received Accrued 07/15/13 811 15 826 1.334% 26,096.79 71,047.62 (44,950.83) 12/13/13 522 166 688 0.753% 21,979.39 51,183.33 (29,203.94) 08/20/14 653 416 1069 0.527% 19,102.38 28,555.55 (9,453.17) 02/18/15 632 598 1230 0.866% 19,446.45 34,097.22 (14,650.77) 04/30/15 156 669 825 0.278% 2,984.34 4,288.19 (1,303.85) 07/31/15 684 761 1445 0.652% 12,741.40 25,489.13 (12,747.73) 09/09/15 660 801 1461 1.000% 36,164.38 30,000.00 6,164.38 11/06/15 192 859 1051 0.473% 1,244.70 944.44 300.26 12/15/15 521 898 1419 1.077% 20,217.70 42,449.65 (22,231.95) 04/29/16 38 1034 1072 0.390% 1,019.66 1,019.66 05/23/16 366 1058 1424 0.800% 16,089.56 15,750.00 339.56 07/22/16 229 1118 1347 0.757% 3,716.43 2,803.12 913.31 07131/16 684 1127 1811 0.973% 18,696.72 21,847.83 (3,151.11) 10/15/16 194 1203 1397 0.962% 2,689.59 3,818.75 (1,129.16) 11/14/16 47 1233 1280 0.550% 1,062.33 1,062.33 03/14/17 87 1353 1440 0.621% 5,927.87 5,927.87 03/28/17 192 1367 1559 0.470% 2,496.80 3,402.78 (905.98) 05/15/17 170 1415 1585 1.162% 2,756.25 2,755.56 0.69 06/06/17 387 1437 1824 1.120% 23,841.58 23,866,67 (25.09) 04/24/18 16 1759 1775 1.150% 1,014.69 1,014.69 08/14/17 170 1506 1.676 0.244% 2,870,56 4,583.33 (1,712.77) 09/20/17 254 1543 1797 0.707% 7,399.84 6,291.67 1,108.17 09/20/17 212 1543 1755 0.604% 3,519.39 3,055.56 463.83 09/20/17 208 1543 1751 0.652% 3,725.72 2,916.67 809.05 09/21/17 255 1544 1799 0.862% 12,026.08 7,055.00 4,971.08 12/08/17 200 1622 1822 0.751% 8,224.87 7,333.33 891.54 03/05/18 74 1709 1783 0.623% 1,268.63 1,268.63 04/24/18 55 1759 1814 0.540% 2,486.87 2,486.87 05/03/18 45 1768 1813 1.172% 1,432.91 1,432.91 10/28/13 16 120 136 0.254% 55.62 55.62 30 30 0.00% 0.00 0.00 06/30/13 91 0 91 0.25% 3,720.65 3,720.65 $51,507,005.10 1073 _ 0.66% $28b,UZU. 14 �;JYJ,6J6.4U (�;1U /,)16.26). Amount Percent $7,834,744.46 15.21% $5,834,680.00 11.33% $9,375,210.00 18.20% $28,462,370.64 55.26% $51,507,005.10 100.00% page 5 * Source: Treasury and Agency Obligations - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. Amortized Market Unrealized Institution Cost Value* Gain (Loss) BNY Assets $47,093,235.37 $46,410,902.63 (682,332.74) BNY MM 253,736.43 253,736.43 0.00 Purchased Interest 10,048.62 10,048.62 0.00 LAIF 4,149,984.68 4,149,984.68 0.00 Totals: $51,507,005.10 $50,824,672.36 - $682,332.74 page 5 * Source: Treasury and Agency Obligations - Union Bank of California LAIF balances per Local Agency Investment Fund monthly statement. Town of Los Gatos Quarterly Investment Report .(Month Ended May 31, 2013) Prepared by Linda L. Speicher, Project Manager 08/01/13 Town of Los Gatos Summary Investment Information May 31, 2013 Weighted Average Portfolio Yield: 0,63% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $62,001,292 $69,389,221 $77,909,764 Benchmarks/ References: Town's Average Yield 0.63% 0.64% 1.02% LA1F Yield for month 0.26% 0.26 % 0.37% 3 mo. Treasury 0.05% 0.05% 0.09% 6 mo. Treasury 0.08% 0.08% 0.14 % 2 yr. Treasury 0.28% 0.23% 0.30% 5 yr. Treasury (most recent) 1.05% 0.71% 0.75% Prime rate 3.25% 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Famaie Mae (05/17/13) 0.49% Note: Both Fannie and Freddie have ceased offering 2 year notes for the time being. 1105 Compliance: The Town's investments are in compliance «,ith the Town's investment policy dated May 1, 2008 and also in compliance Nvith the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient finds to meet the cash demands for the next six months. Page 1 Toren of Los Gatos Portfolio Allocation & Treasurer's Fund Balances May 31, 2013 Fund Balances - Begimiing of Month/Period Receipts Disbursements Fund Balances - End of Month/Period Portfolio Allocation: BNY MM US Govt Agencies Local Agency Investment Fund Subtotal - Investments Reconciled Demand Deposit Balances Total Treasurer's Fund Month YTD $69,389,220.72 $75,558,782.33 2,610,611.80 38,053,089.21 (9,998,540.22) (51,610,579.241 $62,001,292.30 $62,001,292.30 $200,708.35 47,095,416.21 4.149.984.68 51,446,109.24 10,555.183.06 $62,001,292.30 Portfolio Investment Allocation BNY MM Local Agency Investment Fund 0.39% 8.07% US Govt Agencies 91.54% page 2 These accounts are not pail of the Treasurer's fiord balances reported elsewhere in this report, as they are for separate and distinct entities. Note 1: This account includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District'3', as well as Reserve Funds set up as required by the original Bond resolution. Note 4: The three original funds for the Certificates of Participation 2002 Series A consist of construction fiords which will be expended over the next few years, reserve fiords which will guarantee the payment of lease payments, and a third fiord for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fiord for the life of the COP issue. The COI fiord was closed in September 2010: Page 3 Town of Los Gatos Non - Treasury Restricted Fund Balances May 31, 2013 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $286,325.59 $59.65 $286,385.24 Note I Cert. of Participation 2002 Series A Reserve Fund 686,251.19 5.66 5.66 686,251.19 Note 4 Ceti. Of Participation 2002 Ser A Lease Pymt Fund 0.00 0.00 0.00 Note 4 Cert, of Participation 2002 Series A Const. Fund 42,617.75 0.00 42,617.75 Nate 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 0.00 0.00 0.00 Note 5 COP 2010 Library CO] Fund 0.00 0.00 0.00 Note 5 COP 2010 Library Good Faith 0.00 0.00 0.00 Note 5 Total Restricted Funds: $2,292,257.03 $0.00 $65.31 $5,66 $2,292,316.68 These accounts are not pail of the Treasurer's fiord balances reported elsewhere in this report, as they are for separate and distinct entities. Note 1: This account includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District'3', as well as Reserve Funds set up as required by the original Bond resolution. Note 4: The three original funds for the Certificates of Participation 2002 Series A consist of construction fiords which will be expended over the next few years, reserve fiords which will guarantee the payment of lease payments, and a third fiord for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fiord for the life of the COP issue. The COI fiord was closed in September 2010: Page 3 Interest received from Investments Interest accrued /(prepaid) at end of period (see page 5) Interest accrued /(prepaid) at beginning of period Interest earned on investments Town of Los Gatos Statement of Interest Earned May 31, 2013 Interest by Month July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 Page 4 Current Fiscal Month Year to Date - 17,604.35 435,760.79 - 91,945.62 - 91,945.62 - 97,353.16 - 2,568.42 - $12,196.81 $346,383.59 $50,686,03 40,230.09 41,243.95 35,819.67 37,215.67 36,101.46 32,134.20 30,813.78 33,917.82 20,417.73 - 12,196.81 $346,383.59 Market to Cost Position Report Town of Los Gatos Amortized Market Unrealized * Source: Treasury and Agency Obligations - Union Bank of California Institution Cost Value* Crain (Loss) LAW balances per Local Agency Investment Fund monthly statement. BNY Assets $47,088,117.59 $46,772,375.20 Inactive Deposits by Institution 200,708.35 2(10,708.35 0.00 Purchased Interest 7,298.62 7,298.62 0.00 LAIF 4,149,984.68 4,149,984.68 Market to Cost Position Report $51,446,109.24 $51,130,366.85 4315,74239 May 31, 2013 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date Cost Date Elapsed Maturit Invested Maturity Earned Received Accrued TIAA Corporate Note 04/11/11 880,446.95 07/15/13 781 45 826 1.334% 25,131.43 71,047.62 (45,916.19) NY Life Coupon Note 01/25/12 2,041,000.00 12/13/13 492 196 688 0.753% 20,716.21 32,683.33 (11,967.12) FHLMC Coupon Note 09/16/11 2,026,080.00 08/20/14 623 446 1069 0.527% 18,224.78 28,555.55 (10,330.77) FNMA Coupon Note 10 /07/11 1,296,875.00 02/18/15 602 628 1230 0.866% 18,523.35 34,097.22 (15,573.87) F1ILB Coupon Note 01/25/13 2,511,725.00 04/30/15 126 699 825 0.278% 2,410.43 4,288.19 (1,877.76) Treasury Note 08/16/11 1,042,812.50 07/31/15 654 791 1445 0.652% 12,182.56 25,489.13 (13,306.57) FNMA Callable Note 09 /09/11 2,000,000.00 (19/(19/15 630 831 1461 1.000% 34,520.55 30,000.00 4,520.55 FNMA Callable Note 12/20/12 500,260.00 11/06/15 162 889 1051 0.473% 1,050.22 944.44 105.78 Berk Hath Coupon Note 01/26/12 1,315,137.50 12/15/15 491 928 1419 1.077% 19,053.53 27,137.15 (8,083,62) FNMA Callable Note 05/23/13 2,511,301.00 04/29/16 8 1064 1072 0.390% 214.66 214.66 FNMA Callable Note 06/29/12 2,005,700.00 05/23/16 336 1088 1424 0.800% 14,770.74 15,750.00 (979.26) IBM Coupon Note 11/13/12 782,505.00 07/22/16 199 1148 1347 0.757% 3,229.56 2,803.12 426.44 Treasury Note 08/16/11 1,025,390.63 07/31/16 654 1157 1811 0.973% 17,876.69 21,847.83 (3,971.14) SO Coupon Note 12/18/12 526,020.00 10/15/16 164 1233 1397 0.962% 2,273.67 3,818.75 (1,545.08) FNMA Callable Note 05/14/13 1,500,000.00 11/14/16 17 1263 1280 0.550% 384.25 384.25 FNMA Callable Note 04/04/13 4,004,800.00 03/14/17 57 1383 1440 0.621% 3,883.78 3,883.78 FHLMC Callable Note 12/20/12 1,0()9,900.00 03/28/17 162 1397 1559 0.470% 2,106.68 3,402.78 (1,296.10) Berk Hath Coupon Note 01/11/13 509,280,00 05/15/17 140 1445 1585 1.162% 2,269.85 2,755.56 (485.71) FI -II;MC Callable Note 06/08/12 2,007,700.00 06/06/17 357 1467 1824 1.120% 21,993.39 11,866.67 10,126.72 FHLMC Callable Note 06/28/12 2,507,250.00 06/14/17 337 1475 1812 0.139% 3,217.73 13,83333 (10,615.60) FHLMC Callable Note 01/11/13 2,525,925.00 08/14/17 140 1536 1676 0.244% 2,363.99 4,583.33 (2,219.34) FNMA Callable Note 10/19/12 1,504;050.00 09/20/17 224 1573 1797 0.707% 6,525.85 6,291.67 234.18 FNMA Callable Note 11/30/12 1,003,200.00 09/20/17 182 1573 1755 0,604% 3,021.36 3,055.56 (34.20) FNMA Callable Note 12/04/12 1,002,750,00 09/20/17 178 1573 1751 0.652% 3,188.36 2,916.67 271.69 FFCB Coupon Note 10/18/12 1,996,960.00 09/21/17 225 1574 1799 0.862% 10,611.24 7,055.00 3,556.24 FHLB Coupon Note 12/12/12 1,998,720.00 12/08/17 170 1652 1822 0.751% 6,991.14 6,991.14 FNMA Callable Note 04/17/13 1,004,400.00 03/05/18 44 1739 1783 0,623% 754.32 754.32 FNMA Callable Note 05 /06/13 3,056,250.00 04/24/18 25 1789 1814 0.540% 1,130.39 1,130.39 AAPL Corporate Note 05/16/13 991,680.01 05/03/18 15 1798 1813 1.172% 477.64 477.64 Subtotal 47,088,117.59 BNY 1\41\4 200,708.35 30 30 0.00% 0.00 0.00 Purchased Interest 7,298.62 LAIF N/A 03/31/13 4,149,984.68 06/30/13 61 30 91 0.25% 3,178.92 3,178.92 $51,446,109.24 1105 0.63% $262,277.28 $354,222.90 ($91,945.62) Maturity Prol'ile Amount Percent 0 -1 year $7,279,438.60 14.15% 1 -2 years $5,834,680.00 11,34% 2 -3 years $9,375,210.00 18.22% 3 -5 years $28,956,780.64 56.29% $51,446,109.24 100.00% Market to Cost Position Report Amortized Market Unrealized * Source: Treasury and Agency Obligations - Union Bank of California Institution Cost Value* Crain (Loss) LAW balances per Local Agency Investment Fund monthly statement. BNY Assets $47,088,117.59 $46,772,375.20 (315,742.39) BNY MN4 200,708.35 2(10,708.35 0.00 Purchased Interest 7,298.62 7,298.62 0.00 LAIF 4,149,984.68 4,149,984.68 0.00 Totals: $51,446,109.24 $51,130,366.85 4315,74239 page 5 Town of Los Gatos Quarterly Investment Report (Month Ended April 30, 2013) Prepared by Linda L. Speicher, Project Manager 08/01/13 �/# Town of Los Gatos Summary Investment Information April 30, 2013 Weighted Average Portfolio Yield: 0.64% Weighted Average Maturity (days) This Month Last Month One year ago Portfolio Balance $69,389,221 $65,759,913 $79,173,040 Benchmarks/ References: Town's Average Yield 0.64% 0.70 % LAIF Yield for month 0.26% 0.29% 3 me. Treasury 0.05% 0.13% 6 mo. Treasury 0.08% 0.14% 2 yr. Treasury 0.23% 0.26% 5 yr. Treasury (most recent) 0.71% 0.78% Prime rate 3.25% 3.25% Most recent auctions of Freddie Mac or Fannie Mae Reference Notes: 3 yr. Freddie Mac (03/07/13) 0.50% Note: Both Farmie and Freddie have ceased offering 2 year notes for the time being. 0.97% 0.37% 0,10% 0.15% 0.27% 0.89% 3.25% 950 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 kinds to meet the cash demands for the next six months. Page 1 Town of Los Gatos Portfolio Allocation & Treasurer's Fund Balances April 30,2013 Month Fund Balances - Beginning of Month/Peliod $65,759,913.23 Receipts 6,427,970.23 Disbursements (2,798,662.74) Fund Balances - End of Month/Period $69,389,220.72 Portfolio Allocation: BNY MM $1;695,966.13 US Govt Agencies 45,618,043.42 Local Agency Investment Fund 10,149,984.68 Subtotal - Investments 57,463,994.23 Reconciled Demand Deposit Balances 11,925,226.49 Total Treasurer's Fund $69,389,220,72 Portfolio Investment Allocation BNY MM 2.95% Local Agency Investment Fund YTD $75,558,782.33 35,442,477.41 (41,612,039.02) $69,389,220.72 US Govt Agencies 79,39% 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 includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District '3', as well as Reserve Funds set up as required by the original Bond resolution. Note 4: The three original finds for the Certificates of Participation 2002 Series A consist 01'construction fiords which will be expended over tile next few years, reserve funds which will guarantee the payment of lease payments, and a third find for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library constructi on, -res, n es'to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fiend was closed in September 2010. Page 3 Town df.Lba Gatos Non - Treasury Restricted Fund Balances April 30, 2013 Previous Ending Balance Deposits Interest Withdrawals Balance Non - Treasury Funds: Downtown Parking District 12/20/02 $286,263.96 $61.63 $286,325.59 Note I Cert. of Participation 2002 Series A Reserve Fund 686,251.19 5.84 5.84 686,251.19 Note 4 Cert. Of Participation 2002 Ser A Lease Pymt Fund 0.06 0.00 0.00 Note 4 Cert. of Participation 2002 Series A Const. Fund 42,590.36 27.39 42,617.75 Note 4 COP 2010 Library Reserve Fund 1,277,062.50 0.10 0.10 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 0,00 0.00 0.00 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 Notes Total Restricted Funds: $2,292,168.01 $0.00 $94.96 $5.94 $2,292,257.03 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 includes redemption accounts set up for the repayment of interest and principal on outstanding bond coupons for Parking Assessment District '3', as well as Reserve Funds set up as required by the original Bond resolution. Note 4: The three original finds for the Certificates of Participation 2002 Series A consist 01'construction fiords which will be expended over tile next few years, reserve funds which will guarantee the payment of lease payments, and a third find for the disbursement of lease payments and initial delivery costs. Note 5: The 2010 COP Funds are all for the Library constructi on, -res, n es'to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fiend was closed in September 2010. Page 3 Interest received from Investments Interest accrued /(prepaid) at end of period (see page 5) Interest accrued /(prepaid) at beginning of period Interest earned on investments Town of Los Gatos Statement of Interest Earned April 30, 2013 Interest by Month July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 ,tune 2013 Page 4 Current Month 20,817,28 - 97,353.16 - 96,953.61 $20,417.73 $50,686.03 40,230.09 41,243.95 35,819.67 37,215.67 36,101.46 32,134.20 30,813.78 33,917.82 20;417.73 $358,580.40 Fiscal Year to Date 453,365.14 - 97,353.16 - 2,568.42 $358,580.40 page 5 Town of Los Gatos Inactive Deposits by Institution Market to Cost Position Report April 30, 2013 Deposit Amortized Maturity Days Days to Days Yield to Interest Interest Interest Institution Security Date C0- st Date Elapsed Maturit Invested Maturit Earned Received Accrued NY Life Corporate Note 07/22/11 534,350.00 05/09/13 648 9 657 0.791% 7,503.86 30,160.42 (22,656.56) TIAA Corporate Note 04/11/11 880,446.95 07/15/13 750 76 826 1.334% 24,133.90 71,047.62 (46,913.72) NY Life Coupon Note 01/25/12 2,041,000.00 12/13/13 461 227 688 0.753% 19,410.92 32,683.33 (13,272.41) FHL1\4C Coupon Note 09116111 2,026,080.00 08/20/14 592 477 1069 0.527% 17,317.93 28,555.55 (11,237.62) FNMA Coupon Note 10/07/11 1,296,875.00 02/18/15 571 659 1230 0.866% 17,569.49 34,097.22 (16,527.73) FH1,B Coupon Note 01/25/13 2,511,725.00 04/30/15 95 730 825 0.278% 1,817.39 4,288.19 (2,470.80) Treasury Note 08/16/11 1,042,812.50 07/31/15 623 822 1445 0.652% 11,605.10 25,489.13 (13,884.03) FNMA Callable Note 09/09/11 2,000,000.00 09/09/15 599 862 1461 1.000% 32,821.92 30,000.00 2,821.92 FNMA Callable Note 12/20/12 500,260.00 11/06/15 131 920 1051 0.473% 849.25 849.25 Berk Hath Coupon Note 01/26/12 1,315,137.50 12/15/15 460 959 1419 1.077% 17,850.56 27,137.15 (9,286.59) FHLMC Callable Note 08/15/12 2,010,200.00 05116116 258 1112 1370 0.861% 12,234.02 5,055.56 7,178.46 FHLMC Callable Note 08/16/12 1,005,000.00 05 /16/16 257 1112 1369 0.864% 6,113.92 2,500.00 3,613.92 FNMA Callable Note 06/29/12 2,005,700.00 05/23/16 305 1119 1424 0.800% 13,407.97 7,000.00 6,407.97 IBM Coupon Note 11/13/12 782,505.00 07/22/16 168 1179 1347 0.757% 2,726.46 2,803.12 (76.66) Treasury Note 08/16/11 1,025,390.63 07/31/16 623 1188 1811 0.973% 17,029.32 21,847.83 (4,818.51) SO Coupon Note 12/18/12 526,020.00 10/15/16 133 1264 1397 0.962% 1,843.89 3,818.75 (1,974.86) FNMA Callable Note 04/04/13 4,004,800.00 03/14/17 26 1414 1440 0.621% 1,771.55 1,771,55 FHLMC Callable Note 12/20/12 1,009,900.00 03/28/17 131 1428 1559 0.470% 1,703.55 3,402.78 (1,699.23) FNMA Callable Note 05 /25/12 3,033,660.00 05/03/17 340 1464 1804 1.512% 42,727.23 23,041.67 19,685.56 Berk Hath Coupon Note 01 /11/13 509,280.00 05/15/17 109 1476 1585 1.162% 1,767.24 1;767.24 FHLMC Callable Note 06/08/12 2,007,700.00 06/06/17 326 1498 1824 1.120% 20,083.60 11,866.67 8,216.93 FI-ILMC Callable Note 06/28/12 2,507,250.00 06/14/17 306 1506 1812 0.139% 2,921.74 13,833.33 (10,911.59) FHLMC Callable Note 01/11/13 2,525,925.00 08/14/17 109 1567 1676 0.244% 1,840.53 4,583.33 (2,742.80) FNMA Callable Note 10/19/12 1,504,050.00 09/20/17 193 1604 1797 0,707% 5,622.72 6,291.67 (668.95) FNMA Callable Note 11/30/12 1,003,200.00 09/20/17 151 1604 1755 0.604% 2,506.74 3,055.56 (548.82) FNMA Callable Note 12/04/12 1,002,750.00 09/20/17 147 1604 1751 0.652% 2,633.08 2,916.67 (283.59) FFCB Coupon Note 10/18/12 1,996,960.00 09/21/17 194 1605 1799 0.862% 9,149.25 7,055.00 2,094.25 FHLB Coupon Note 12/12/12 1,998,720.00 12/08/17 139 1683 1822 0.751% 5,716.28 5,716.28 FNMA Callable Note 04/17/13 1,004;400.00 03/05/18 13 1770 1783 0.623% 222.87 222.87 Subtotal 45,612,097.58 BNY MM 1,695,966.13 30 30 0.00% 0.00 0.00 Purchased Interest 5,945.84 LAIF N/A 03/31/13 10,149,984.68 06/30/13 30 61 91 0.26% 2,275.11 2,275.11 $57,463,994.23 950 0.64% $305,177.39 $402,530.55 ($97,353.16) Maturity Profile Amount Percent 0 -1 year $15,307,693.60 26.64% 1 -2 years $5,834,680.00 10.15% 2 -3 years $4,858,210.00 8.45% 3 -5 years $31,463,410.63 54.75% $57,463,994.23 100.00% Market to Cost Position Report Amortized Market Unrealized * Source: Treasury and Agency Obligations - Union Bank of California Institution Cost Value* Gain (Loss) LAIF balances per Local Agency Investment Fund monthly statement. BNY Assets $45,612,097.58 $45,462,878.91 (149,218.67) BNY 1\41\4 1,695,966.13 1,695,966.13 0.00 Purchased Interest 5,945.84 5,945.84 0.00 LAIF 10,149,984.68 10,149,984.68 0.00 Tota)8: $57,463,994.23 $57,314,775.56 - $149,218.67 page 5