HomeMy WebLinkAboutStaff Report 383-10TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: OCTOBER 25, 2010
REPORT TYPE: INFORMATION
DEPARTMENT: ADMINISTRA TlVE
SERVICES
CMR: 383:10
SUBJECT: City of Palo Alto '8 Investment Activity Report for the I<'irst Quarter, Fiscal Year
2011
BACKGROUND
The purpose ofthis report is to inform Council of the City's investment portfolio status as of the end
of the first quarter. The City's investment poliey requires that staff report quarterly to Council on the
City's portfolio composition compared to Council-adopted policy, portfolio performance, and other
key investment and cash flow infolmation.
DISCUSSION
The City's investment portfolio is detailed in Attachment B. It is grouped by investment type and
includes the investment issuer, date of maturity, current market value, the book and face (par) value,
and the weighted average maturity of each type of investment and of the entire portfolio.
The par value of the City's portfolio is $339.5 million; in comparison, last quarter it was $345.6
miIlion. The decline in the portfolio of $6.1 million since the last quarter primarily results from the
timing of cash flows. One quarter of the City Sales tax receipts ("triple flip") and in-lieu vehicle
license fee tax payments by the State will be received in January and May 2011 instead of on a
monthly. The portfolio consists of $25.5 million in liquid accounts and $314.0 million in U. S.
government treasury investments, agency securities, and celtificates of deposit. The $314.0 million
includes $87.3 million in investments maturing in less than two years, comprising 27.8 percent of the
City's investment in notes and securities. The investment policy requires that at least $50 million be
maintained in securities maturing in less than two years.
The current market value ofthe p0!1folio is 105.7 percent of the book value. The market value of
securities fluctuates, depending on how interest rates perform, when interest rates decrease, the
market value of the securities in the City's poltfolio will likely increase; likewise, when interest rates
increase, the market value of the securities wi11likely decrease. Understanding and showing market
CMR:383:10 Page I of 3
values is not only a reporting requirement, but essential to knowing the principal risks in actively
buying and selling securities. It is important to note, however, that the City's pr(lctiee is to buy and
hold investments until they mature so changes in market price do not affect the City's investment
principal. The market valuation is provided by Union Bank of California, which is the City'S
safekeeping agent. The average life to maturity of the investment portfolio is 3.42 years compared to
3.63 years last quarter.
Investments Made During the First Ouarter
During the first quarter, $38.0 million of government agency securities with an average yield of
4.4% percent matured. During the same period, government securities totaling $32.0 million with an
average yield of 2.4% percent were purchased. As higher yielding maturing investments are re
invested at lower interest rates, the portfolio's yield is expected to further decline in coming quarters.
The City'S short-term money market and pool account increased by $0.1 million compared to the
fourth quarter. Investment staff continually monitors the City's short-term cash flow needs and
adjusts liquid funds to meet those needs.
Availability of Funds for the Next Six Months
Normally, the flow of revenues from the City's utility billings and General Fund sources is sufficient
to provide fnnds for ongoing expenditures in those respective funds. Projections indicate receipts
will be $196.5 million and expenditures will be $189.6 million over the next six months, indicating
an overall growth in the portfolio of$6.9 million.
As of June 30, 2010, the City had $25.5 million deposited in the Local Agency Investment Fund
(LAIF) and a money market aecount that could be withdrawn on a daily basis. In addition,
investments totaling $24.0 million will mature between October 1,2010 and March 31, 2011. On
the basis of the above projections, staff is confident that the City will have more than sufficient funds
or liquidity to meet expenditure requirements for the next six months.
Compliance with City Investment Policy
During the first quarter, staff complied with all aspects of the investment policy. Attachment C lists
the major restrictions in the City's investment policy compared with the portfolio'S actual
performance.
Investment Yields
Interest income on an accrual basis for the first quarter was $3.1 million. As of June 30, 2010, the
yield to maturity of the City's portfolio was 3.46 percent. This compares to a yieldof3.68 percent in
the foullh quarter. The portfolio yield is expected to decrease in future quarters as staff continues to
re-invest higher-yielding maturing securities at lower interest rates. The City's portfolio yield of
3.46 percent compares to LAIF's average yield for the quarter of 0.51 percent and an average yield
on the two-year and five-year Treasury bonds during the first quarter of approximately 0.53 percent
and 1.53 percent, respectively.
Yield Trends
In the last seven quarters, the Federal Open Market Committee (FOMC) maintained the historical
low federal funds and discount rate at 0.25 and 0.75 percent, respective/yo The FOMC and
economists in general have revised downward their economic outlook and gross domestic product
CMR: 383:10 Page 2 of3
(GDP) due to the slower pace of recovery and job growth. The labor market has stabilized
somewhat; however, husinesses are still reluctant to hire. Bllsiness spending on equipment,
palticularly in the high tech area, continues to rise but the housing market continues to be weak. The
FOMC continues to maintain that lower rates are necessary for an extended period to stimulate the
economy. Based on current interest rates and FOMC monetary policy, the City's portfolio's yield is
expected to continue to decline.
Funds Held by the City or Managed Under Contract
Attachment A is a consolidated rcport of all City investment funds, including those not held directly
in the investment portfolio. These include cash in the City's regular bank account with Wells Fargo.
The bond proceeds, reserves, and debt service payments being held by the City's fiscal agents are
subject to the requirements of the underlying debt indenture. The trustees for the bond funds are U.S.
Bank and California Asset Management Program (CAMP). Bond funds with U.S. Bank are invested
in federal agency and money market mutual funds that consist exclusively of U.S. Treasury
securities. Bond funds in CAMP are invested in banker's acceptance notes, certificates of deposit,
commercial paper, federal agency securities, and repurchase agreements. The most recent data on
funds held by the fiscal agent is as of June 30, 2010.
FISCAL IMPACT
This is an information report.
ENVIRONMENTAL REVIEW
This information repOit is not a proj ect under the Califomia Environmental Quality Act; therefore, an
environmental review is not required.
ATTACHMENTS:
A) Consolidated Report of Cash and Investments
B) Investment Portfolio, as of June 30, 2010
C) Investment Policy Compliance
PREPARED BY: ~~
TARUNNA YAN
DEPARTMENT HEAD APPROVAL:
inistrative Services
CITY MANAGER APPROVAL: ~~If "-l} J.-L
. /jAMEKE~E 0
City Manager
·CMR: 383:10 Page 3 ofJ
Consolidated Report
City of Palo Alto Cash and Investments
First Quarter, Fiscal Year 2010-11
(Unaudited)
City Inyestmeut Portfolio (see AU.ehmen! B)
Other Funds Held by the City
Cash with Wells Fargo Bank
(includes general and lmprest aC(:(lunts)
Investment with CAMP (University Ave. Pilrking Garages)
Pclty/Working Cash
Tot.11 ~ Other Funds Held By City
Funds Under Management of Third Party Trustees •
(Debt Service Pro.eeds)
us Bank '[DIS' ServIces ..
1995 Utility Revenue Bonds
Debt Service Fund
1998 Golf Course Certificates ofPartieipation
Debt Service Lease Payment Funds
2002 Civic Center (fax Exempt) Certificates of Participation
Reserve Fond
$
Book Value
343,903,522
4,285,337
584,003
12,658
4,881,998
3
153
350,000
2002 Downtown Parking Impvt (Taxahle) Certificates ofPartieipation
Rescrve Fund 237,950
Eserow Account for Partial Defeasance of Bonds
2002 Utility Revenue Bonds
Debt Serviee Fund
2009 Water Revenue Bonds (Bllild America Sonds)
Projeet, Debt Service. Reserve, Cost oflssuance Funds
2010 GenemJ Obhgation (Library) Bonds
Cost orIssuanee Fund
California Asset Management PrQgram (CAN1Pi ...
1998 Golf Course Certificates ofPartieipation
Reserve Fund
2001 University Ave, Parking Bonds
Reserve Fund
2002 University Ave, Parking Bonds
Reserve and Admin. Funds
2002 Utility Rcvellue Bonds
Reserve Funds
2010 General Obliglltion (Library) Bond
Project Fund
Total Under Trustee Management
GRAND TOTAL
739,653
75,760
30,462,402
39,547
695,364
637.456
3,226,732
I,B3B,823
53,357,167
91,661,010
$ 440,446,530
-it< These funds are subjeel to thc requirements offhe underlying debt indenture,
Attachment A
Market Value
$ 363,516,780
4,285,337
584,003
12,658
4,881,998
3
153
350,000
237,950
739,653
75,760
30,462,402
39,547
695,364
637.456
3,226,732
1,838,823
53,357,167
91,661,010
$ 460,059,7!j8
** U.S. Bank investments are in money market nmtuaJ funds that exclusively invest In U,S, TreasllfY securities.
U. CAMP investments are in money DUlfke( mulual nmd which. invest in bankers acceptance, eertificate of deposit.
eommercial paper, federal agency securities, and repurchase agreements.
eUSIP Investment #
Certificates of Deposit -Bank
9244804549 674
Managed Pool Accounts
SYS158
SYS159
158
159
Federal Agency Issues -Coupon
3O'769PAAQ
31315PGES
307692AAl
3Oi692AA1
307692AA1
307692AA1
31315PLRa
31315PMOB
31315PES4
31315PEY1
31315PAT6
31331TKF7
31331VY91
31331V4E3
31331VWS1
31331S3H4
31331VJ"Y2
31331XSR4
3'1331XWU2
31331XA.36
31331XU75
31331GLT4
~ Date: 1011812010 -15:27
645
840
628
630
631
696
820
821
838
839
866
592
653
655
657
658
862
690
693
701
715
788
Issuer
Certftioa1e of Deposit
Fidelity Investmen'"..s
Local Agency lnvestment Fund
Federal Agnculture Mortgage C
Federal Agriculture Mortgage C
Federal Agriculture Mortgage C
Federal Agriculture Mortgage C
Federal Agriculture Mortgage C
Federal Agriculture M~e C
Federal AgriclJltural MOIt939"
Federai Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultura! Mortgage
Federal Agricultural Mortgage
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Farm Credit BanI(
Federal Farm Credit Bank
Federal Farm Credit BanI(
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Farm CreaJt Bank
Federal Farm Credit BanI(
Federal Farm Credit Bank
Federal Farm Credit Bank
ATTACHMENT B
City of Palo Alto
Fund ALL -Portfolio Listings
Investments by Fund
September 30, 2010
Cu....m Purchase
Date BookVatue ParVaJue Market Value Rate
11l24t.2oo6
SUbtotal and: Average
0719 1f200S
07101120013
Subtotal and Average
07/2012006
01f191201()
0511212006
0511812006
0511812006
051031:2007
OSI111200"
08110/2009
12f.1012OO9
1213012009
0511712010
06/1412005
0912a/200S
10/1212006
10116!2oo6
1Qf16!2006
1'1/16/:2006
03127/2007
04125/2007
0512512007
0Sl2Ot2007
O:llO4l2OO9
___ -'~~::c' ____ '..;56..:.:.:.8..:80.:;."'94 166,860.94
166,880.94 100,,880.94 166,880.94
1,710,724,13 1,710,724.13 1,710,724.13
23,785,442.1)7 23,7a5,442.01 23,824,540.01
25,496,166.20 25,496,166.2. 25,53S,2S4, 14
1,999,440.n
2,000.000.00
3,994,104.70
1,997,120.38
3,994,14:2.:24
2,,000,000.00
2,000,000.00
2,000,000.00
2,000,000,00
1,500.000.00
1.000,000.00
1,499,967.4:2
2,016,799.67
4,006,368.95
2,040,7~4.60
1,482,211.20
2.010,641.53
2,000,000.00
2,000,000.00
2,000,000.00
3,009,604,97
1.000,000.00
2.000,000.00
:2,000,000.00
4,000,000.00
2.000,000.00
4,000,000.00
2,000,000.00
2,000.000.00
2,000,000.00
2,000,000.00
1.500,000.00
1,000,000.00
1,500,000.00
2.000,000.00
4.000,000.00
2,039,000.00
1,500,000.00
2.000.000.00
2,000,000.00
:2.000,000.00
2,000,000.00
3,000,000.00
1,000.000.00
2,079,600.00
2,252,280.00
4,053,760.00
2,o26,eao.00
4,053,760.00
2,026,880.00
2,132,500.00
2,059,820.00
2,104,860.00
1,651.860.00
1,099,960.00
1,505,525.00
2,251,880.00
4,508,760.00
2,331,474.16
1,686.090.00
2,217,500.00
2,260,000.00
2,051,200.00
2,081,260,00
3.437,820.00
1,092,190.00
4.020
0.020
0.490
MOO
4.125
4.875
4.875
4.875
4.a75
3.250
2.100
2.S20
4.500
3.750
4.180
5.280
5.180
5.200
4.750
5.200
4.875
4.800
5.050
5.300
3.750
YTM
360
4.069
4.070
0.019 0_
0.452
50465
4.068
5.389
5.375
5.335
4.806
3.205
2.071
2.781
4.438
3.698
4.147
4.827
5.059
5.100
5.104
4.Sn
4,807
4.734
4.9S0
5.128
3.698
City of Palo Alto
Administration Svcs. Dept.
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
YTM Maturity Days To
365 Date Maturity
4.125 09!24/2O'11 358
358 4.126
0.020
00490
0.458
5.541 07/1512011 287
4.125 01/19/2017 2,302
5,464 01/1412011 105
5.450 0111412011 105
5,460 0111412011 105
4.572 01114120;11 105
3.250 08/1112014 1,410
2.100 0811012012 679
2.820 1213012014 1,551
4.500 1213012019 3,3n
3.750 0511712017 2,420
4,205 1110512010 35
4.894 08,11612013 1,050
5.130 09/1512014 1,445
5.171 0411712014 1.294
5.175 0211812014' 1,230.
4.945 03l20f2013 901
4.874 03J14/2014 1,260
4.800 04125120'11 206
5.050 0512512011 236
5.199 08/1312014
3.749 01/2912018
1,412
1,948
Portfolio CPA
AP
FI(PRF_Fl}7.t1
Report Vet. 7.3.1
~
~
~
'"
CUSIP Investment#
Federal Agency Issues ~ Coupon
31331GlSO
31331GUS1
31331GZ44
31331G6D8
31331JFZ1
31331JKH5
31331JKW2
31331JQB2
31331YELO
31331JZX4
31331JZA4
31331JN90
31331XBSO
31331XCY6
31331XGX4
31331XNES
31331XPB2
31331XVH2
31331X827
31331XC26
31331)(074
31331XC26
31331XK35
31331X2JO
31331X2u5
31331XsH3
31331X5Y4
31331YER7
31331YH06
31331Y$V3
31331GLM9
31331GPN3
RunOate: 10f1812010~ 15:27
623
825
626
835
850
856 callable
85a Callable
870
872
696 Callable
89SCallable
903
659
660
668
876
877
692
702
703
705
707
709
717
719
720
721
724
725
747
779 callable
785
Issuer
Federal farm Credit Bank
Federal Farm Credit BanK
Federal Farm Credit BanI<
Federal Fann Credit Bank
Federal Farm Credit Sank
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal farm Credit Bank.
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Farm Credit BanI<
Federal Farm Credit Bank
Feo.raI Fatm C""'" -S & P
Federal Fatn'I Credit· S & p
Federal Farm Credit ~ S & p .
federal Farm Credit -S & P
Federal Farm Credit -S &. p
FedE:raJ Farm Credit -S &. p
Federar Farm Credit -S & P
Federa1 Farm Credit -S & p
Federal F8(m Credit -S & p
federal Farm Credit -S & p
Federal Fann CredIT -S & P
Federal F8(m Credit -S & p
Federal Farm Credit· S & p
Federal Farm Credit -S & p
Federal Farm Credit-S & p
Federat Farm Credit-S & p
Federal Farm Credit -S & P
Federal Farm Credit ~ S & P
Federal Farm Credit ~ S & P
Federal Farm Credit w S & P
Fund ALL -Portfolio Listings
Investments by Fund
September 30, 2010
Purohase
Date
0al21/2009
0912412009
10f15J2009
1210912009
03108/2010
0411212010
04119/2010
06/0212010
06/0~10
09110/2010
OOJ2412010
0912912010
1Of25/2006
11/0612006
12111/2006
02l01f2007
02J07t1.OO7
04/12/2007
08I<l512007
0610512007
0611212007
05/0SJ2007
07105J2OO7
0910412007
09/00/2007
09/17/2007
1010312007
1112112007
1211212007
02/1112008
0112712009
03/0412009
Book Value
2.000,000.00
2.000,000,00
2,000,000.00
2.000.000,00
2,000.000,00
1,500,000.00
1.500,000.00
1,000,000.00
2.212,892.03
1.S00.000.OO
1,500.000.00
1,000.000,00
3,000,000.00
2,000,000.00
2.000,000.00
2,000,000.00
2,000,000.00
2.000.000.00
3.S00.0OO.00
2,000.000,00
2.000,000.00
2,978,696.07
2,000,000.00
2.000.000.00
1,500,000,00
1,500,000.00
1.500,000.00
2,000,000.00
2,000,000.00
1,SOO.000.00
2,000.000.00
1,500,000,00
Par Value
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2.000,000,00
1.500,000,00
1,500,000,00
1.000,000.00
2,000.000.00
1,500,000.00
1,500,000,00
1,000,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
3,500,000.00
2,000,000.00
2,000,000.00
3,000,000,00
2,000.000.00
2.000,000.00
1.500.000.00
1,500,000.00
1,SOO,000.00
2,000.000.00
2,000,000.00
1,500,000.00
2,000,000.00
1,500.000.00
CUrrent
Market Value Rate
2,143,760.00
2,046.260.00
2,036,880.00
2,011.260,00
2,171,6aO,00
1,528.125.00
1,563,750.00
1,053,130.00
2,319,380.00
1,500,000,00
1.,5Q2,34(l,OO
999,690.00
3,379,660.00
2,318,760,00
2,136,260.00
2,032,500.00
2,206.260.00
2,133,760.00
3,929,835.00
2,305,000.00
2,276,880.00
3,457,500.00
2,075,000,00
2,165,620,00
1,561.410.00
1,708,590,00
1.719,375.00
2,090,000.00
2,301,260.00
1.653.285.00
2,095,620.00
1,567,500.00
3,000
1,600
1.550
0,875
3.375
4.000
3,740
3.000
5.000
0.620
2520
2.875
5.050
5.050
4.825
5,050
5.150
4.875
5.200
5.250
5.330
5.250
5.250
4,930
4.750
5.000
5.000
4.350
4,525
3.850
4.000
2.600
YTM
360
2.659
i.nS
1,528
0,863
3.328
3,945
3.688
2.958
3.027
0.611
2.485
2.835
4.979
4.980
4,561
4._
5.079
4.808
5.130
5.176
5.257
5.400
5.17$
4.882
4.5S4
4.931
4.931
4.290
4.561
3.797
3.944
2.584
Page 2
YTM Maturtty Days To
3SS DlIte Maturity
3.000 09122i2014
1.800 0912412012
1.550 101151:201"2
0.875 1210912011
3.375 03lO8J2017
4.000 0411212018
3,740 04/19/2017
3.000 06/0212017
3.070 1111512016
0.620 09J10f2012
2.520 1112412017
2.875 0912912020
5.048 11125/2013
5.050 05/0612015
4,525 06/1112012
5.050 0210112011
5.150 0210712013
4.875 0411212012
5.201 08J05J2013
5.250 0610512014
5.330 1211Bf2013
5.484 0010512014
5.250 07t0512011
4.930 OSlO4l2012
4]50 09J0612011
5,000 0911712014
5,000 10103J2014
4.350 11121/2011
4.624 1211512017
3.850 0211112015
3.999 0112512019
2.600 =13
1,452
724
745
434
2,350
2.750
2,392
2,436
2.237
710
2,611
3,$51
1,151
1,678
619
12'3
860
559
1,039
1.343
1,174
1,343
2n
704
340
1,447
1,463
418
2.632
1,594
3,038
885
Portfolio CPA
AP
FI (PRF _FI) 7.1.1
Report VeL 7.3.1
CUSIP Investment #
Feder'al Agency Issues M Coupon
31:l31YCJ7 722
31:l31VCQ7 742
31331SKH5 744
3133MCLA1 562
3133X2BX2 585
3133X28X2 ses
3133MDBT9 595
31:l3XFJY:; 642
3133XG3W2 544
3133XF5T9 B48
3133X9ZZ8 649
31339Y71(2 652
3133XHBl5 654
31:l3XHW57 SS7
3133XJUT3 685
3133XGJ96 699
3133XGJ96 706
3133XlDG5 710
3133XlDG5
3133XPBA1
3133XPBA1
3133XSP93
3133XTCS3
3133XTFQ4
3133XTQH2
3133XTY02
3133XUCX9
3133XUMS9
3133XUMR1
3133XDTl5
31:l3XVRJ2
3133MJQFO
R\Jf'\ Date: 1at18f2Q10 -15:27
713
7110
741
777
780
793
817
818
81.
822
827
830
832
833
Issuer
Federal Farm Credit Bank -Moo
Fed. Farm CredU: Bank
Fed. Farm Credit Bank
Federal Home Loan Sank
Federal Home Loan Ban)!;
Federal Home Loan Bank
Federal Home loan Bank
Federal Home Loan Bank
Federal Horne loan Sank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Sank
Federat Home loan Ban)!;
Federal Home loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Sank
Federal Home Loan Bank
Federal Home loan Sank
Federal Home Loan Bank
Federal Home loan Bank
Federal Home Loan Bank
Federal Home loan Bank
Federal Home loan Sank
Federal Home Loan Bank
Fund ALL -Portfolio Listings
Investments by Fund
September 30, 2010
Purchase
Date
10/30/2007
0113012008
01!3012008
0611812004
0112712005
03I1l112oo5
07/11/2005
07/07/2006
07{11/2006
09/12J2006
09112J2006
0912$12008
1011212006
1211412006
0212312007
05{16l2007
0810812007
06128!2oo7
08120/2007
01125/2008-
01i3012008
01/1612009
03116/2009
0410112009
05f22t2009
06/16/2009
07l20l2009
0811212009
1012112009
10121/2009
1111912009
11/1912009
Book Value
2,000,000.00
2,088,847.18
1,023,,",2.58
1,502,883.88
2,000 ,2CNS. 51
1,99$,740.37
2.010,590.92
1,996,245.52
2,001,133.79
1,998,815.03
1 ;986,614,24
2,003,792,07
1,986,776.49
2,000,000.00
2.000,000.00
2,011,846.64
995,163.31
2,500,000.00
3,018,831.54
2,000,000.00
2,951,021.18
3,050,622.11
2.000,000.00
3,000,000.00
1,500,000,00
2,000,000.00
2,000,000.00
3,000,000.00
1,022,749.44
3,262,197.90
3,020,918.31
1.334,557.06
Par Value
2,000,000.00
2,000,000.00
1,000,000.00
1,500.000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000.000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000.000.00
2,000,000.00
1,000,000.00
2,500,000.00
3,000,000.00
2,000,000,00
3.000,000.00
3,000,000.00
2,000,000.00
3,000,000.00
1,500,000.00
2,000.000.00
2,000,000.00
3,000,000.00
1,000,000.00
3.000,000.00
3,000,000.00
1,200,000.00
Current
Market Value Rate
2,344,360.00
2,307,500.00
1,131,250.00
1.511,715.00
2,010,000.00
2,010,000.00
2,041.260.00
2,06$,620.00
2,075.620.00
2,085.000.00
2,103,120.00
2.228,120.00
2,273,120.00
2,248,120.00
2,130,520,00
2,255,000.00
1,127,500,00
2,884.375,00
3,461.250.00
2,181,260.00
3.271,890.00
3.203,430.00
2,135,620.00
3,193,140.00
1,532,340.00
2.227,500.00
2.048,760,00
3,402,180.00
1,078,750.00
3,488,430.00
3,254,070,00
1,428,758.00
4.900
4.800
4.500
6.625
4.250
4.250
5.875
$.250
5.600
5.000
4.500
5.000
4.875
4.875
5.000
5.250
5.250
5,375
5.375
3.500
3.500
3.125
3.000
2.900
1.600
4.000
1.875
4.500
3.250
5.000
3.500
5.500
YTM
360
4.$32
3.945
3.820 4_
4.096
4.310
4.201
5.483
5.435
5.002
5.040
4.650
5.020
4.806
4.929
4.943
5._
S.SOO
5.09S
3.451
3.669
2.794
2,958
2.860
1.775
3.945
2.210
4.437
2,594
3.101
3.325
3.304
Page 3
YTM Maturity Days To
3G5 Date Maturity
4.900 10130/2017
4.000 1011912015
3.873 0112:212015
4.718 1111512010
4.153 1111512010
4.370 1111512010
4.260 0211512011
5.560 06/10/2011
5.511 06126120.11
5.072 09/09/2011
5,110 01/0612012
4.918 07f1612Oj3
5.089 O6I13t2014
4.873 12/13.!2013
4.997 0310912012
5.011 09/13/2013
5A44 09/131201$
5.374 0611312014
5.170 061131'2014
3.499 03l1Si2015
3,923 03/13/2015
2..833 12/1312013
2.999 0311312014
2.900 0410112014
1.800 05122/2012
4.000 0SJ1612015
2.240 07!23l2012
4.499 0911:312019
2.631 0911212014
3.145 1212112015
3.312 1210912016
3.350 08/1512018
2,585
1,_
1.574
45
45
45
137
252
270
343
462
1,019
1,351
1,169
525
1,078
1.076
1,351
1,351
1,624
1,624
1,169
1.259
1,278
5 ..
1,719
661
3,269
1,442
1,907
2,261
2,145
Portfolio CPA
AP
FI (PRF _FI) 7.1.1
Re:poftVer. 7.3. i
CUS!P Investment #
Federal Agency Issues -Coupon
313SXW4W6
S133XWRQ4
3133XWX53
313SXWX95
3133XXH59
313SX\NW47
3133XXXK8
3133XEUG2
S1S3XHVS8
3133XYlN3
3133XYVXO
3i33X'fV85
3133XVNU1
3133XUMR1
3133XYY01
3133XWNB1
3133XBDM4
3133705P9
3133705T1
3133706K9
313370RP5
313370TS4
3133717D2
3133XHXW7
3133XP4Q4
3133XPTJ3
3133XSNca
3133XSZ50
3133X'TFD3
313'lXTHE9
31SSXTP26
312SX3M34
RW'1 Dele: 1011&12010 -15:27
837
843 Callable
845
847
652 Callable
8S4
857 Callable
85.
860
667 Callable
875
676 CaJiable
878
879
881 Callable
883
885
886
887
886 Callable
899 Callable
900
901 -729 Callable
751 Callat»e
no Callab1e
781
792
794
812 callable
57'
Issuer
Federal Home loan Sank
Federal Home Loan Sank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home loan Bank
Federal Home loan Sank
Federal Home Loan Sank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home loan Bank
Federal Home Loan Bank
Federal Home Loan Sank
Federal Home Loan Sank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home loan Sank
Federal Home Loan Bank
Federal Home Loan Bank -$ & P
Federaj Home Loan Bank -S &. p
Federal Home Loan Bank -S & p
Federal Home Loan Bank -S & p
Federal Home Loan Bank -S&P
Federal Home Loan Bank ~ S &. p
Federal Home Loan Sank -S &. p
Federal Home loan Bank ~ S & p
Fed, Home Loan Mortgage COrp,
Fund ALL -Portfolio Listings
Investments by Fund
September 30,2010
Purchase
Dote
1211112009
0211012010
02J03f2010
02119/2010
03117/2010
0311912010
04I16J2010
04t.2S.12010
04121512010
06108/2010
06/2912010
0612912010
00/23/2010
06I23J2010
07/14/:2010
0612912010
01512912010
Q7f1Si2010
0710812010
0712112010
09/13/2010
08130/2010
09/27/2010
1112712006
01124!2008
0212812008
12116/2008
02101512009
03/2712009 .
0411312009
0512012009
1111912004
Book Value
2,000,000,00
2,000,000.00
2,000,000,00
2,000,000,00
1,500,000.00
2,116.774,51
1,500,000.00
1,618,169.93
1,625,181.25
1,500,000.00
2.000,000.00
2,000,000.00
3,080,031.31
1,570,427.90
1,000,000.00
1,549,1534,60
2,223,745,48
1,500,000.00
1,500,000.00
1,500,000.00
1,000,000.00
2,000,000.00
1,000,000,00
2,000,000.00
1,000,000,00
1.500,000,00
1,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000,00
1,000,000.00
Par Value
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000,00
1,500,000,00
2,115,000.00
1.500,000,00
1,500,000.00
1,500,000.00
1,500.000.00
2,000,000.00
2,000,000.00
3,000,000.00
1,500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
1,500,000.00
1,500,000.00
'1,500,000,00
1,000,000.00
2,000,000.00
1,000,000,00
2,000,000.00
1,000,000,00
1,500,000.00
1,000,000,00
2,000.000.00
2,000,000.00
2,000,000.00
1,500,000.00
1,000,000.00
Cummt
Market Value Rate
2.033,120.00
2,029,SSO.00
2,0'9,380.00
2,110,620,00
1,516,750.00
2,136,150.00
1.584,375,00
1.742,820.00
1,762,965.00
1,5215,715.00
2,022,500.00
2,010,000,00
3,ln,1SO.DO
1,618,125,00
1,000,940.00
1,587,195.00
2,286,260.00
1,505,625.00
1,514,070,00
1,525.785,00
1,002,500.00
2,003,760.00
1,000,630.00
2,248,760.00
1,012,500,00
1,581.090,00
1,007,810,00
2,045,000.00
2,125,620.00
2,052,500.00
1,521,195.00
1,005,420,00
1.500
4.370
1.100
2.750
3.625
1.125
4.375
4.875
5.000
3.550
1.125
2.670
2.750
3.250
3.350
2.875
4,750
0.700
1.080
3.600
2.820
0,850
1.000
4.875
4.500
4.500
4.250
2.100
2.850
2.000
4.080
4.400
YTM
361)
1.479
4.310
1.0B5
2.711
3.575
1.051
4,315
3.227
3,430
3.501
1.109
2.633
2,052
1.975
3,304
2.099
2.022
0.690
1.065
3.550
2.781
0.838
0.988
4.808
4.438
4.421
4.191
2.071
2.810
1.972
4.024
4,339
Page 4
YTM Maturity Days To
365 Dote Maturity
1,500 1211112012
4,370 0211012020
1,100 04/03/2012
2.749 0311312015
3.625 03/1712017
1.065 03/0912012
4.375 0411612020
3.272 0311112016
3,478 12109J2016
3.550 00/0812017
1.125 10129/2012
2.670 0612912015
2.081 1211212014
2.003 09/1212014
3.350. 07/1412017
2.128 0611212015
2.051 02J13/2015
0,700 0411612012
1.080 04I0Bi2013
3,600 0712112020
2.820 02J13!.2019
0.850 0712912013
1.000 0212712014
4,875 1112712013
4.500 0112412018
4.482 02f2aJ2018
4.250 1211512013
2.100 02I0B!2012
2.850 03127/2014
2.000 07/13/2012
4.080 05l20J2019
4.400 1111912010
802
3,419
550
1,624
2,359
525
3,485
1,988
2,261
2,442
759
1,732
1.533
1,442
2,478
1,715
1,596
563
920
3,581
3,085
1,002
1.245
1,153
2,672
2.707
1,172
493
1,273
!lS1
3,153
49
Portfollo CPA
AP
'FI (PRF _Fl) 7.1.1
ReportVer.7.3.1
CUSIP Investment #
Federal Agency Issues -Coupon
S126X1KG1
3128X1KG1
3134A4UM4
3125X8E7$
3128X3SE1
S134G1GY4
3134G1GZ1
3134G1KP8
3128X2RA5
3134G1LN2
3134A4VG6
312aXSN85
313Ei4FBV2
31364KSSO
31398ANT5
313SFHGA7
313981\)(83
3135FHPX7
31359MXX6
313$FJXY2
3136FMTD£
3136FMUR3
3136FMVP6
31359MZCO
313SFMW34
3135FMV$4
3136FM2G8
3138FMBX7
3136FPE06
313$F8M71
31398A~N6
3136F9ES6
Run Date: 1011812010 -15:27
57.
682
714
S08 Callable
82S
873 Callable
874 Callable
S82 Callable
1384
889 Callable
890
734 Callable
67S
583
775
790 Callable
798 Callable
805 Callable
829
83S
865 Callable
ass Callable
869 Callable
891
892 Callable
893 Callable
S94 Callable
895 Callable
897 Callable
131 Ca!!abJe
761 Callable
763 Callable
Ios_
Fed. Home !.Dan Morlgag<l Corp.
Fed. Home Loan Mor1'9age Corp.
Fed. Home Loan MorIgage Corp.
Fed. HolM Loan MO!1!Jage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan MoI1gage Corp.
Fed. Home lean Mortgage Cocp.
Fed. Hom. Loan MoI1gage Corp.
Fed, Home Loon Mortgage Cocp.
Fed. Home Loan Mortgage Corp.
FeeL Home loan Mortgage Corp.
Fed, Home Ln Mig. S8.P 8; Fitch
Federal National Mortgage Asso
Federal National Mortgage Asso
Federal National Mortgage Asso
Federal National Mortgage A$SO
Federal National Mortgage A$SO
Federal National Mortgage A$$O
Federal National Mortgage A$SO
Federal National Mortgage As$()
Federal National Mortgage As$()
Federal National Mortgage As$()
Federal National Mortgage A$$O
Federal National Mof1!jage Asso
Federal National Mortgage Asso
Feder.il National Mortgage Asso
Federal ""Ilona! MoI1g"9" Asso
Federal National MoI1gageAsso
Federal NaIi_MoI1gageAsso
Fed. Nat MoI1g. Assoc . .saP
Fed. N.t Mortg. Assoc..s&P
Fed. Nat Mortg. _-SlIP
Fund ALL· Portfolio Listings
Investments by Fund
September 30, 2010
PurChase
Da'"
0210712007
02/15/2007
0812012007
0511912009
1012112009
0613012010
0710712010
0711412010
OS!29J2Q10
07J2012010
07107/20:10
01/31/2008
02l07f2007
021151.2007
01[1612009
03iZY2009
05105/2009
05/14/2009
10/2112009
1212312009
OS/26/2010
0e!0312010
06/1112010
0710712010
0112612010
07f27f2010
0712812010
0Sl2S12010
0910912010
0210712008
04<0812008
0410=08
BookValue
1,463,010.64-
1,952,418.01
1,966,478.16
1,500,000.00
2,183.655.41
1,500,000.00
1,500,000,00
1,500,000.00
4,567,12238
1,500,000.00
4,497,941,76
1,500,000.00
2,048,937,87
1,426,36520
3,131,066,76
1,000,000,00
1,500,000.00
1,500,000.00
2,181,593,16
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
2,212,882.17
1.500,000.00
1,500,000.00
2,000,000.00
, ,500,000.00
1,500,000.00
2,000.000.00
1,000,000.00
1,000,000,00
Par Value
1.500,000.00
2,000,000.00
2,000,000.00
1,500,000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
4,000,000.00
1,500,000.00
4,000,000.00
1,500,000.00
2,000,000.00
1,500,000.00
3,000,000.00
1,000,000.00
1.500,000,00
1.500,000,00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000.000.00
2,000,000.00
1,500,000.00
1,500,000.00
2,000.000.00
1,500,000.00
1,500,000.00
2,000,000.00
1,000,000.00
1,000,000.00
Cun-ent
Market Value Rate
1,624,695.00
2,166.260,00
2,228,120.00
1,516.275.00
2,302,200.00
1,524,390,00
1 ,SOU1S.OO
1,$09,315.00
4,727,560.00
1.507,800.00
4,623,760.00
1,578,545.00
2,:223,:(20,00
1,536.090.00
3,253,140.00
1.015,000.00
1,519,695.00
1.521,090.00
2,298,120.00
1,513,590.00
1,507,965.00
1,503,285.00
2,010,620.00
2,268,120,00
1,503.285,00
1,518,750.00
2,010,620.00
1.505,160.00
1,498,590.00
2,025,000.00
1,Oal,250.00
1,060,940.00
4.000
4.000
4.500
2.'70
5.050
3.000
2.750
3.000
5.300
2.375
4,750
4.300
E).470
2.000
4.250
3.250
2.800
2.125
5.000
4.200
4.000
2.000
3.000
4.375
1.400
2.000
2.000
1.750
1.650
4.125
4.000
4.000
YTM
360
5.010
4.970
5.033
2.140
2.713
2.956
2.712
2.958
2,327
2.342
2.135
4;241
4.967
4.956
2.298
3.206
2.761
2.095
2.738
4.142
3.945
4.327
4.036
2.100
1.380
1,972
1.972
1.726
1.624
4,068
3.945
3.945
Page 5
YTM Maturity Days To
365 Date Maturity
5.080 06l1Zf2013
5,040 06[1212013
$.103 01[1512014
2.170 '1/1912012
2,751 01/2612015
3.000 0613012016
2.150 07/0712015
3.000 07/1412016
2.360 1210112015
2.375 0712012015
2.165 1111712015
4.300 01131/2015
5.036 0912512012
5.025 08/1712012.
2,330 0212512013
3.250 1212312014
2.000 0510512014
2.125 0511412014
2.n4 0310212015
4.200 1212312019
4.000 11i2€J2Q18
4.387 1210312018
4.092 1211712018
2.129 10/1512015
1.400 0712612013
2.000 01127/2015
2.000 1012812015
1.750 08l2S/2015
1.850 0910912015
4.125 0210712018
4.000 04/0812013
4.000 04102'2013
985
9a5
1,202
760
1,576
2.099
1,740
2,113
1,867
1.153
1,673
1,583
125
sae
578
1,544
1,312
1,321
1,613
3.370
2,978
2,985
2,999
1,840
1,029
1,579
1,853
1,769
1,604
2,666
920
914
Portfolio CPA
M'
FI(PRF.FI)7.1.1
Repcrt Ver. 7.S,1
Fund ALL -Portfolio Listings
Investments by Fund
September 30,2010
PulOl1ase
CUSIP Investment# Issu ... Dale SQokValue Par Value
Federal Agency Issues ~ Coupon
313&FHXF7 816 callable Fed. Nat. Mortg. AssocAIIIP 0611012009 2,000.000.00 2,000,000.00
313588UB3 143 Fed. National Mortgage Assoc. 0113012008 3,834.115.55 3,000,000.00
B805910T6 643 Tennessee Valley Autho!"I1y 0110112008 2.034,281.02 2,000,000.00
880591CWO -Tennessee Valley Authority 10116/2006 1,527,143.66 1,500,000.00
8a0591CWO 861 Tennessee Valley Auti'Ioti1:',t 11/1612006 3,069,344.56 3.000,000.00
880S91DL3 684 Tennessee Valley Authorfty 0211512007 1,546,739.30 1,500,000.00
880591DY5 716 Tennessee Valley Authority Oai20f2007 2.901.284.63 3,000,000.00
880591EAB 881 T enoessee Valley Authority 04J2612010 2,2113,1319,35 2,000,000.00
sao5910Te 883 Tennessee Valley Authority 0510412010 2,183,479.95 2.000,000,00
Subtotal and Average 310,222,445.20 305,854,000.00
Treasury Securities -Coupon
912a2sHK9 769 U.S. T"",SUI)! OS!OOl2ooa 2,010,188.45 2,000,000.00
912$2SMQO 655 U.S. Treasury 0311912010 1,997,848.49 2,000,000.00
912ll28ML1 862 U.S. Treasury 04126/2010 2,002,320.135 2,000,000.00
912a213ML1 871 U.s. Treasury 06I!l412010 2,007,671.86 2,000,000.00
$ubtobll and Average 8,018,029.65 8,000,000.00
Totallnvestmef1t:s and Average 343,903.521.99 339,517,00.14
F'il.tn Oate: 10/18!2010 -1$:27
Current YTM YTM
Market Value Rate 360 365
2,006,260.00 2.000 1.972 2,000
4,290,930.00 10.350 3.987 4.043
2,203,180.00 6.790 5.476 5.553
1,691,790.00 6.000 5.054 5.125
3,383,580.00 6.000 4.825 4.892
1,656,225.00 7.140 4.892 4.960
3,382.680.00 4.375 5.163 5.235
2,410.100,00 5.500 3.602 3.652
2.203,180.00 6.790 1.114 1,130 ------
329,638,295.16 3.705 3.756
2.127,340.00 3.375 3.078 3.120
2,015,240.00 0.875 0.938 0.952
2,016,880.00 1.000 0.893 0.905
2,018,880.00 1.000 0.680 0.690 ------
8,175,340.00 1.399 1.419
363,516.780.24 3.410 3.456
PageS
Matu rtty Oays To
Date Maturity
1211012012 801
12/1012015 1.896
05123/2012 600
0311512013 896
0311512013 89.
05123(2012 600
0611$/2015 1,716
07118[2017 2,482
0$/2312012 600
1.366
1113012012 791
02f29l2012 516
12fS112011 45.
1213112011 456
554
1,241
Portfolio CPA
AP
fl (PRF _fl) 71.1
Ril?OrtVer.7}t1
Attachment C
General Investment Guidelines:
Investment Policy Compliance
As of Jnne 30, 2010
Investment Policy Requirements
a) The max. stated final maturity of individual sceurities in the portfolio shnuld be 10 years.
b) A max. 0[30 percent of the pal' value of the portfolio shull be invested in securities wtth maturities
beyond 5 years.
e) The City shall maintain a minimum of one month's cash needs in short term investments.
d) At least $50 million shall be maintained in seeurities maturing in less than 2 years.
Plus two managed pool accounts which provide instant liquidity:
-Local Agency lnve,'\ment Fund (LAIF) -maximum investment limit is $40 million
-Fidelity Investments
e) Shoold market value oflhe portfolio fall below 95 percent ofthe hnok value, report this fact within a
reasonable time to the City CouneH and evaluate if there are risk ofholdjng securities to maturity,
d) Commitments to pmchase secul'ities newly introduced on the market shall be made no more than three (3)
working days before pricing.
1) Whenever possible, the City will obtain three or more quotations on the purchase or sale of
comparable 1ieeurities (excludes new issues, LAIF, City of Palo Alto bonds, money market
accounts, and mutual funds).
U.S. Government Securities:
a) There is no limit on purchase of these securities.
b) Seeuritie, will not exceed 10 years maturity. _ L __ -'---~_ _ ___ _
3 U.S. G{)vernment Agellcy Securities:
a) There is no limit on purchase of these seeurities except for:
Callable and Molti-stop-up securities provided that:
-The potential call dates ore known at the time of porchase;
'" the interest rates at whieh they "step~Up') arc known at the time of purchase; and
-the entire face value of the security is redeemed at the call date.
-No more than 20 pereent of the pal' value of pOitfolio.
b) Securities will not exceed 10 yeors maturity.
1-+---
4 Bonds orthe State of California Municipal Agencies
a) Having at lime of investment a minimum Double A (AAlAA2) rating as provided by a nationally
recognized rating service (e.g., Moody's andlol' Standard and Poor's).
Compliance
Check
FilII Compliance
27,6%
Full Compliance
$87.3 million
$23,8 million
$1.7 million
105,7%
Full Compliance
Full Compliance
Full Compliance
Full Compliance
Full Compliance
Full CompHanec
Full Complianee
16.8%
None Held
b) May not exceed 10 percent of the par vaiue of the pOltfolh
I---+------"'-'---------, ------------, ------\-------------1
5 Certificates of Deposit:
a) May not exceed 20 pereent ofthc par value of the portfolio;
b) No more than 10 percent of the par value nfthe pnrtfolio in collateralized CDs in any institution.
c) Porehase collateralized deposits only from federally insured large banks that are rated by
a nationally recognized rating ageney (e.g. Moody's, Standard & Poo~s. etc.).
d) For non-rated banks, deposit should be limited to amonnts federally insured (FDIC)
• Full Compliance
0.049%
e) Rollovers are not perJnitted without specific instruction from authorized City staff. ,_._--------------'--------
6 Banker's Acceptance Notes: None Held
a) No more than 30 percent of the par value ofthe portfolio.
b) Not to exeeed 180 days maturity.
e) No more than $5 million with anyone institution.
7
,
8
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i
, 9
c.--
!
10
i
II
1-.-
12
:
I
13
L
! 14
i
Attachment C
Investment Policy Compliance
As of June 30,2010
Investment Policy Requiremeuts
Commercia) Paper:
a) No more thall 15 pereent ofthe par value of the portfolio.
b) Having highest letter or numerical rating from a nationally re<.:ognized rating service.
cJ Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent of the outstanding commercial paper of any one jnstitution~
whichever is lesser, .. -.... ----~.--.--.... ------.----...
Short-Term Repurchase Agreement (REPO):
aJ No! to exceed I year.
b) Market value of securities that underlay a repurchase agreement shaH be valued at 102 percent 01'
greater of the funds borrowed against those securities.
--... --~----.... ---.~.--... ----.-~~-.. ----~--~---.... -----.---
Money MArket Deposit Accounts
aJ LlqUld bank accounts whIch seek to mamtam a net asset value of$1.00.
,
Compliance
Check
None Held
None Held
. ... -.
:
' Full Compliance
i
___________ M. ____ -----------
Mutual Funds: None Held
aJ No more than 20 percent of the par value of the portfolio.
b) No more than 10 "e"cen, of the par value with anyone institution. .
Negotiable Certificates of Deposit (NCD): None Held
a) No more than 10 pareent ofthe por value oflbc poJtfolio.
b) No more than $5 million in anyone institution. _ .... -------~-~.--.. -------~-.. .. _-.. ------~.----------_ .. ------. ~---. .... ~ ... -.. --.
Medium-Term COl1lOrate Notes: None Held
a) No more than 10 pereent of the par value of the portfolio.
b) Not to exceed 5 years maturity.
c) Securities eligible for investment shaU have a minimwn rating of AA from a nationally recognjzcd
rating service.
d) No more than $5 million ofthe par value may be invested in securities of any single issuer, other
than the U.S. Govcrnment5 its agencies and instrumentality. I oj If seeurities owned by the City are downgraded by either rating agencies to a level below AA it
shall be the City1s policy to review the credit situation and make a determination as to whether
to sell or retain such seeurities. i
~ . -_ .... ---,,_ ... . __ .... .-... --~---.... -
Prohibited Investments: Full Compliance
0) Reverse Repurchase Agreements None Held
b) Derivatives as defined in Appendix B ofthe Inveslment Policy
-..... ------"---..... -~""----..... ----------..... --. -..... __ .. ----..... _-_ .. .~--... ~
All securities shall be delivered to the Cilys s.fekeeping custodian, and held in the name ofthe Compliance
City, with the exception of:
• Certifieales of Deposit, Mutual Funds, and LAIF
!