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Home My WebLink About2005-01-24 City Council (4)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 2.80 years. Investments Made During the Second Quarter During the second quarter, $13.2 million of government agency securities with an average yield of 4.7% percent matured. During the same period, government securities totaling $17.5 million with an average yield of 4.2% percent were purchased. The City's short-term money market and pool account decreased by $6.8 million compared to the first quarter of 2003-04. Investment staff continually monitors the City's short-term cash flow needs and adjusts liquid funds to meet those needs and to take advantage of investment opportunities. Availability of Funds for the Next Six Months The normal flow of revenues from the City's utility billings and General Fund sources is sufficient to provide funds for ongoing expenditures in those respective funds. Projections indicate receipts will be $144.5 million and expenditures will be $141.4 million over the next six months, indicating an overall growth of the portfolio of about $3.1 million. As of December 31, 2004, the City had $24.8 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn on a daily basis. In addition, securities totaling $29.2 million will mature between January 1, 2005 and June 30, 2005. On the basis ofthe above projections, staffis confident that the City will have more than sufficient funds to meet expenditure requirements for the next six months. Compliance with City Investment Policy During the second quarter of 2004-05, staff complied with all aspects of the investment policy. Attachment C lists the restrictions in the City's investmentpolicy compared with the portfolio's actual compliance. Investment Yields Interest income on an accrual basis for the second quarter of 2004-05 was $4.0 million. As of December 31, 2004, the yield to maturity of the City's portfolio was 4.27 percent. This compares to a yield of 4.21 percent in the first qUaIier of 2004-05. With interest rates moving upward, staff expects the portfolio's yield to gradually increase in coming quarters. The City's portfolio yield of 4.27 percent compares to LAIF' s average yield for the quarter of2.0 percent and an average yield on the two-year and five-year Treasury bond during the second quarter of approximately 3.0 percent and 3.60 percent, respectively. Yield Trends The Federal Open Market Committee (FOMC) has increased the federal funds rate and the discount rate since June 2004 by 1.25 percent to 2.25 and 3.25 percent, respectively. The FOMC continues to maintain a "balanced" outlook on the economy in its official , pronouncements. This outlook reveals an expectation that the upside and downside risks associated with sustaining economic growth are equal. As revealed in the minutes of the last FOMC meeting, however, the FOMC concern over inflation has heightened. This means the FOMC may become more aggressive in raising rates this year and the City'S portfolio yields will rise. CMR: 132:05 Page 2 of3 J' Consolidated Report City of Palo Alto Cash and Investments Second Quarter, Fiscal Year 2004-05 (Unaudited) City Investment Portfolio (see Attachment B) Other Funds Held by the City Cash with Bank of America (includes general and imprest accounts) Petty/Working Cash (as of 12/31104) Total -Other Funds Held By City Funds Under Management of Third Party Trustees * (Debt Service Proceeds) US Bank Trust Services ** 1995 Utility Revenue Bonds Debt Service Fund 1998 Golf Course Certificates of Participation Lease Payment Fund 1999 Utility Revenue Bonds Construction and Debt Service Funds 2002 Civic Center Certificates of Participation Lease Payment and Reserve Funds 2002 Downtown Parking Impvt. Certificates of Participation Improvement and Reserve Funds 2002 Utility Revenue Bonds Debt Service Funds California Asset Management Program (CAMP) *** 1998 Golf Course Certificates of Participation Reserve Fund 2001 University Ave. Parking Bonds Improvement, Reserve, and Admin. Funds 2002 University Ave. Parking Bonds Improvement, Reserve, and Admin. Funds 2002 Utility Revenue Bonds Construction and Reserve Funds Total Under Trustee Management GRAND TOTAL Book Value $ .374,616,974 3,009,574 14,195 . 3,023,769 10 14,046 164,851 351,525 1,364,972 20,363 716,293 876,395 4,177,841 3,452,531 11,138,827 $ 388,779,570 * These funds are subject to the requirements of the underlying debt indenture. Attachment A Market Value $ 377,456,554 3,009,574 14,195 3,023,769 10 14,046 164,851 351,525 1,364,972 20,363 716,293 876,395 4,177,841 3,452,531 11,138,827 $ 391,619,150 ** U.S. Bank investments are in money market mutual funds that exclusively invest in U.S. Treasury securities. *** CAMP investments are in money market mutual fund which invest in bankers acceptance, certificate of deposit, commercial paper, federal agency securities, and repurchase agreements. Investment Report Attaehments.xls A"achmenl A lI11f2OQ55:00PM CUSIP Inves.tment # Managed Pool Accounts SYS158 SYS159 158 159 Federal Agency Issues. Coupon 31315PHU6 31315PHU6 31315PJU4 31315PLG2 31331RWF8 31331H2V8 31331H2V8 313310HF7 31331 RYM1 313310Z34 313310Z42 313310Z91 313310KV8 313310ZR1 31331TP08 313310ZR1 31331TUG4 31331SGB3 3133M4F81 3133M77K6 3133MCHS7 3133MBY92 3133M8X41 313395LC7 3133M9FD9 3133MDATO 3133MEU66 Run Date: 01/11/2005 -16:31 521 531 560 568 313 315 372 446 456 490 Callable 491 Callable 499 Callable 502 510 523 Callable 528 537 Callable 578 Callable 316 323 324 325 326 328 338 345 347 Issuer Fidelity Investments Local Agency Investment Fund Federal Agricultural Mortgage Federal Agricultural Mortgage Federal Agricultural Mortgage Federal Agricultural Mortgage Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit 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 ATTACHMENT B City of Palo Alto Investments by Fund , December 31, 2004 Purchase Date 07/01/2004 07/01/2004 Subtotal and Average 12130/2003 0210212004 05106/2004 07/29/2004 08/01/2000 09/20/2000 08/2212001 12117/2002 02107/2003 07/09/2003 07/09/2003 07/11/2003 07/23/2003 08/28/2003 01/05/2004 01/27/2004 03/01/2004 11/16/2004 09/25/2000 1211212000 12126/2000 01/05/2001 01/17/2001 01/26/2001 03/2212001 04/27/2001 05/15/2001 Book Value 765,731,59 24,008,265.55 24,773,997.14 2,011,816.25 2,013,938.51 1,948,029.78 1,974,132.02 1,343,574.35 .2,000,286.72 1,516,944.02 2,007,757.52 2,154,500.41 1,000,000.00 1,000,000.00 999,506.66 2,027,606.62 1,966,372.23 1,500,000.00 1,503,429.60 1,000,000.00 1,000,000.00 2,993,741.72 1,729,089.13 5,028,650.94 4,027,831.33 4,018,263.96 2,031,249.46 2,036,105.65 1,000,299.12 2,997,011.30 Par Value 765,731.59 24,008,265.55 24,773,997.14 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 1,350,000.00 2,000,000.00 1,500,000.00 2,000,000.00 2,000,000.00 1,000,000.00 1,000,000.00 . 1,000,000.00 2,000,000.00 2,000,000.00 1,500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 3,000,000.00 1,740,000.00 5,000,000.00 4,000,000.00 4,000,000.00 2,000,000.00 2,000,000.00 1,000,000.00 3,000,000.00 Current Market Value Rate 765,731.59 23,977 ,938.81 24,743,670.40 . 1,981,920.00 1,981,920.00 1,969,800.00 2,016,428.00 1,369,291.50 2,054,380.00 1,540,785.00 2,007,500.00 2,152,400.00 985,310.00 987,810.00 983,750.00 2,010,000.00 1,976,880.00 1,500,000.00 1,482,660.00 996,880.00 1,001,250.00 3,035,640.00 1,781,864.40 5,151,550.00 4,101,240.00 4,162,520.00 2,140,000.00 2,100,000.00 1,003,130.00 3,086,250.00 1.930 2.190 3.759 3.759 3.375 4.000 5.800 6.700 6.700 3.500 5.930 3.190 3.950 3.840 3.650 3.100 4.000 3.100 4.375 4.350 6.000 5.370 6.500 6.875 6.090 6.789 6.375 5.375 5.375 YTM 360 1.903 2.160 2.152 3.540 3.511 4.018 4.260 6.938 6.583 4.832 3.274 3.500 3.146 3.895 3.797 3.097 3.649 3.945 2.978 4.315 4.290 6.614 5.986 5.656 5.512 5.631 5.810 5.017 5.030 5.383 YTM Maturity Days To 365 Date Maturity 1.930 2.190 2.182 3.590 11/10/2008 1,409 3.560 11/10/2008 1,409 4.074 02115/2009 4.319 07/15/2009 7.035 06/17/2005 6.675 09/13/2005 4.899 09/13/2005 3.320 05/04/2007 3.549 08/07/2008 3.190 07/09/2008 3.950 07/09/2010 3.850 07/07/2010 3.140 1210312007 3.700 01/2212008 4.000 01/05/2009 3.020 01/2212008 4.375 03/01/2011 4.350 11/16/2009 6.706 05/06/2005 6.070 01/20/2006 5.735 11/15/2005 5.588 08/15/2005 5.710 06/0212006 5.891 02105/2007 5.087 08/15/2006 5.100 02115/2005 5.457 05/15/2006 1,506 1,656 167 255 255 853 1,314 1,285 2,015 2,013 1,066 1,116 1,465 1,116 2,250 1,780 125 :> 384 ::4 318 g:; 226 ~ 517 t:t1 Z 765 t-3 591 to 45 499 Portfolio CPA AP FI (PRF JI) SymRept V6.21 .' Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3133M8AT1 3133M9FD9 3133MBH42 3133M04W8 3133MBKX4 3133MEV65 3133MEU66 3133MOZP9 3133MBKX4 3133MEU66 3133MKED5 3133MKED5 3133MC3G8 3133MBT31 3133MTQB7 3133M3H32 3133M6TDO 3133MXGA1 3133M7FC5 3133M8D76 3133M8B29 3133M9CL4 3133MYUM7 31339XAV6 31339X6V1 31339X6V1 31339XVC5. 31339XVM3 31339XU28 3133MKED5 3133MW2K6 3133MYRRO 3133MW2K6 Run Date: 01/11/2005 -16:31 353 356 357 364 365 367 373 374 375 382 383 384 385 389 444 447 455 457 Callable 462 464 465 466 472 Callable 473 Callable 475 Callable 478 Callable 480 Callable 481 Callable 482 Callable 483 485- 486 487 Issuer 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 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 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 Bank Federal Home Loan Bank Federal Home Loan Bank Fund· All Investments by Fund December 31, 2004 Purchase Dale 05/21/2001 05/2212001 05/31/2001 06/29/2001 06/29/2001 08/16/2001 08/27/2001 08/27/2001 09/06/2001 11/19/2001 1210612001 12114/2001 12/14/2001 01/28/2002 1210312002 12117/2002 02104/2003 03/26/2003 03/20/2003 03/24/2003 04/08/2003 04/08/2003 05/28/2003 06/17/2003 06/18/2003 06/18/2003 06/25/2003 06/30/2003 07/0212003 06/1212003 06/16/2003 06/16/2003 06/17/2003 Book Value 1,502,278.46 3,031,482.27 1,509,022.78 4,102,828.38 4,156,593.57 3,383,527.55 2,006,672.04 1,344,620.26 1,570,708.20 2,017,766.88 3,000,806.98 2,992,373..26 1,035,613.91 2,025,486.03 1,986,979.26 2,131,076.96 2,124,087.56 2,000,000.00 2,131,372.62 3,232,336.00 2,525,368.14 789,441.49 3,000,000.00 2,000,000.00 2,000,000.00 1,500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 2,112,311.47 1,532,332.47 2,031,226.46 1,529,830.78 Par Value 1,500,000.00 3,000,000.00 1,500,000.00 4,000,000.00 4,000,000.00 3,380,000.00 2,000,000.00 1,300,000.00 1,500,000.00 2,000,000.00 3,000,000.00 3,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 3,000,000.00 2,335,000.00 700,000.00 3,000,000.00 2,000,000.00 2,000,000.00 1,500,000.00 1,500,000.00 1,000,000.00 1,000,000.00 2,000,000.00 1,500,000.00 2,000,000.00 1,500,000.00 Current Market Value Rate 1,545,945.00 3,150,000.00 1,525,785.00 4,315,600.00 4,391,240.00 3,413,800.00 2,057,500.00 1,411,319.00 1,646,715.00 2,057,500.00 3,088,140.00 3,088,140.00 1,083,130.00 2,045,620.00 2,000,620.00 2,142,500.00 2,131,260.00 1,986,260.00 2,132,500.00 3,251,250.00 2,523,271.05 791,875.00 2,991,570.00 1,969,380.00 1,963,120.00 1,472,340.00 1,457,820.00 975,940.00 975,310.00 2,058,760.00 1,487,340.00 1,967,500.00 1,487,340.00 5.665 6.375 7.250 6.995 7.625 5.250 5.375 6.855 7.625 5.375 4.875 4.875 6.750 6.955 3.500 5.905 5.490 4.650 5.477 5.885 5.805 7.030 4.250 4.000 3.250 3.250 2.750 3.100 2.870 4.875 2.875 2.625 2.875 YTM 360 5.444 5.540 5.331 5.562 5.582 4.864 5.026 5.237 5.222 4.586 4.792 4.960 5.093 4.319 3.698 3.609 3.684 4.586 3.619 3.773 3.592 3.780 4.191 3.945 3.205 3.205 2.712 3.057 2.830 1.745 1.795 1.911 1.873 Page 2 YTM Maturity Days To 365 Date Maturity 5.520 03/2212006 5.617 08/15/2006 5.405 05/13/2005 5.640 04/0212007 5.659 05/15/2007 4.932 05/13/2005 5.096 05/15/2006 5.310 08/15/2007 5.295 05/15/2007 4.650 05/15/2006 4.858 11/15/2006 5.029 11/15/2006 5.164 08/15/2007 4.379 07/15/2005 3.749 11/15/2007 3.660 03/27/2008 3.735 1212212008 4.650 03/26/2013 3.670 01/28/2009 3.826 03/30/2009 3.642 03/23/2009 3.833 07/14/2009 4.250 05/28/2010 4.000 1211712010 3.250 12118/2008 3.250 12118/2008 445 591 132 821 864 132 499 956 864 499 683 683 956 195 1,048 1,181 1,451 3,006 1,488 1,549 1,542 1,655 1,973 2,176 1,447 1,447 2.750 06/25/2008 1,271 3.100 1213012008 1,459 2.870 07/0212008 1,278 1.770 11/15/2006 683 1.820 0211512007 775 1.938 05/15/2007 864 1.900 0211512007 77 5 Portfolio CPA AP FI (PRF _FI) SymRept V6.21 Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3133MYRRO 489 31339YFV9 492 Callable 31339YJR4 493 Callable 31339YKSO 31339YMH2 31339YRS3 3133MYS01 3133M4ET6 3133XOE88 3133X1EE3 3133X1F77 3133XOLJ6 3133XOLJ6 3133XOLJ6 3133MEUC3 31339X5V2 31339YTD4 3133M1CY3 3133MABK4 3133X4HP9 3133X4H53 3133X5LCO 3133X5M08 3133X50X9 3133MDAS2 3133X5VA3 3133X5V54 3133X6P83 3133MOSR6 3133X72TO 3133X73W2 3133MCLA1 3133X7WT7 Run Date: 01/11/2005 -16:31 494 Callable 496 Callable 498 Callable 500 Callable 504 509 511 Callable 513 Callable 514 517 518 524 527 530 532 533 535 Callable r 536 Callable 539 Callable 540 Callable 541 Callable 543 545 Callable 546 Callable 551 Callable 552 558 Callable 561 562 564 Callable Issuer 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 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 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 Bank Federal Home Loan Bank Federal Home Loan Bank Fund -All Investments by Fund December 31, 2004 Purchase Date 06/17/2003 07/23/2003 07/14/2003 07/29/2003 07/21/2003 07/30/2003 07/15/2003 07/23/2003 08/25/2003 10/15/2003 10/06/2003 10/06/2003 10/16/2003 10/20/2003 01/06/2004 01/27/2004 01/29/2004 0210912004 02109/2004 03/11/2004 03/16/2004 04/19/2004 04/13/2004 04/23/2004 03/30/2004 04/14/2004 04/20/2004 04/28/2004 04/20/2004 05/17/2004 05/15/2004 06/18/2004 08/03/2004 Book Value 1,013,654.64 1,000,000.00 1,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 4,000,000.00 1,086,636.91 1,986,097.45 1,500,000.00 1,000,000.00 1,514,191.90 2,008,503.37 3,007,692.53 1,605,338.80 2,946,875.74 1,984,314.00 1,948,840.67 1,345,981.98 2,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 2,000,000.00 1,627,314.15 1,000,000.00 1,000,000.00 1,000,000.00 2,053,839.97 1,000,000.00 996,449.42 1,643,361.64 2,000,000.00 Par Value 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 4,000,000.00 1,000,000.00 2,000,000.00 1,500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 3,000,000.00 1,500,000.00 3,000,000.00 2,000,000.00 1,750,000.00 1,200,000.00 2,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 2,000,000.00 1,500,000.00 1,000,000.00 1,000,000.00 1,000,000.00 2,000,000.00 1,000,000.00 1,000,000.00 1,500,000.00 2,000,000.00 Current Market Value Rate 983,750.00 979,060.00 985,310.00 976,560.00 1,484,070.00 988,750.00 3,958,760.00 1,082,810.00 1,986,260.00 1,500,000.00 1,000,000.00 1,503,750.00 2,005,000.00 3,007,500.00 1,602,195.00 2,910,000.00 1,974,380.00 1,941,415.00 1,339,872.00 1,998,120.00 1,000,630.00 1,482,195.00 986,560~00 1,988,120.00 1,592,340.00 994,690.00 994,690.00 1,003,440.00 2,053,760.00 1,014,380.00 1,007,500.00 1,690,785.00 2,001,880.00 2.625 3.000 3.190 3.125 4.000 3.320 3.830 6.185 3.125 4.700 4.600 3.750 3.750 3.750 5.750 2.625 3.100 6.400 6.500 4.550 4.160 4.180 4.000 4.000 5.625 4.100 4.400 4.850 4.500 5.000 4.000 6.625 5.200 YTM 360 1.995 2.958 3.146 3.082 3.945 3.274 3.776 3.313 3.363 4.635 4.536 3.415 3.570 3.620 3.438 3.146 3.294 3.599 3.649 4.487 4.103 4.122 3.945 3.944 2.702 4.043 4.339 4.783 3.796 4.931 4.034 4.654 5.128 Page 3 YTM Maturity Days To 365 Date Maturity 2.023 05/15/2007 3.000 07/23/2008 3.190 07/14/2008 3.125 01/29/2009 4.000 07/21/2010 3.320 07/30/2008 3.829 11/28/2008 3.359 05/06/2008 3.410 08/15/2007 4.700 10/15/2010 4.600 10/06/2010 3.462 08/15/2008 3.619 08/15/2008 3.671 08/15/2008 3.486 05/15/2008 3.190 05/15/2008 3.340 07/16/2008 3.649 08/06/2009 3.700 11/13/2009 4.550 03/11/2011 4.160 09/16/2009 4.180 04/19/2011 4.000 10/13/2010 3.999 01/25/2010 2.740 0211512008 4.100 04/14/2010 4.400 04/20/2011 4.850 04/28/2011 3.849 08/14/2009 5.000 05/17/2011 4.090 05/15/2009 4.718 11/15/2010 5.200 08/0312011 864 1,299 1,290 1,489 2,027 1,306 1,427 1,221 956 2,113 2,104 1,322 1,322 1,322 1,230 1,230 1,292 1,678 1,777 2,260 1,719 2,299 2,111 1,850 1,140 1,929 2,300 2,308 1,686 2,327 1,595 2,144 2,405 Portfolio CPA AP FI (PRF -1'1) SymRept V6.21 Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3133X7SH8 566 3133MAT02 567 3133MYYZ4 3133MRCM2 3133MWBM2 3133MAT02 3133X0607 3133X9NS5 3133X9NUO 3134A32S4 3134AOJFO 3134A1KC3 3134A10R4 3134A3406 3134A022 3134AOY22 3134A1AZ3 3134A1AZ3 3134A32S4 3134A1GX2 3134AOS78 3134A1RG7 3128XOB32 3128X07J2 3128X1HU4 3128X1JDO 312924UM3 3134A3M78 3134A2DT2 3128X3AW3 3134A4U05 3134A35H5 3128X06KO Run Date: 01/11/2005 -16:31 569 570 572 573 574 580 Callable 581 Callable 305 318 327 329 330 331 332 334 341 344 350 358 361 452 Callable 467 Callable 476 Callable 477 Callable 479 534 542 550 Callable 553 563 576 Issuer 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 Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor Fund ·AII Investments by Fund December 31,2004 Purchase Date 07/30/2004 07/29/2004 08/25/2004 10105/2004 10105/2004 10108/2004 10108/2004 1210812004 12110/2004 03/08/2000 10/17/2000 01/23/2001 01/26/2001 0210112001 02123/2001 02123/2001 03/07/2001 03/26/2001 04/27/2001 05/16/2001 05/31/2001 0612212001 02120/2003 04/30/2003 06/19/2003 06/11/2003 05/30/2003 0210912004 03/30/2004 05/03/2004 04/20/2004 06/18/2004 11/09/2004 Book Value 2,001,970.92 1,698,293.47 1,929,927.58 1,032,094.93 1,492,347.48 2,304,492.21 1,500,014.41 1,000,000.00 1,000,000.00 3,999,709.26 500,377.56 4,065,964.44 2,037,538.09 2,015,234.56 3,053,301.86 2,035,534.77 2,565,080.49 2,572,883.07 2,001,278.81 2,529,669.73 2,140,600.15 2,055,833.74 1,500,000.00 2,000,000.00 3,000,000.00 2,000,000.00 3,165,737.36 1,690,310.31 2,182,962.58 800,000.00 987,699.61 1,661,935.55 1,516,392.31 Par Value 2,000,000.00 1,500,000.00 2,000,000.00 1,000,000.00 1,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 1,000,000.00 4,000,000.00 500,000.00 4,000,000.00 2,000,000.00 2,000,000.00 3,000,000.00 2,000,000.00 2,500,000.00 2,500,000.00 2,000,000.00 2,500,000,00 2,100,000.00 2,000,000.00 1,500,000.00 2,000,000.00 3,000,000.00 2,000,000.00 3,000,000.00 1,500,000.00 2,000,000.00· 800,000.00 1,000,000.00 1,500,000.00 1,500,000.00 Current Market Value Rate 2,033,120.00 1,730,625.00 1,940,000.00 1,034,690.00 1,494,375.00 2,307,500.00 1,505,160.00 1,001,250.00 1,003,750.00 4,005,000.00 512,970.00 4,265,000.00 2,148,120.00 2,045,000.00 3,170,640.00 2,113,760.00 2,664,075.00 2,664,075.00 2,002,500.00 2,646,875.00 2,222,724.00 2,154,380.00 1,502,985.00 2,001,920.00 2,944,260.00 1,965,680.00 3,095,640.00 1,677 ,660.00 2,135,620.00 800,040.00 986,560.00 1,712,340.00 1,519,605.00 4.250 7.375 3.375 4.750 3.875 7.375 4.125 4.300 4.400 6.875 6.790 6.700 6.800 7.000 6.990 6.990 7.140 7.140 6.875 6.400 7.220 6.943 4.130 4.000. 3.375 3.030 5.000 . 6.625 5.750 5.000 3.375 6.875 4.250 YTM 360 4.167 4.370 4.056 4.044 3.931 3.978 4.067 4.241 4.339 6.998 6.558 5.641 5.700 5.316 5.533 5.533 5.277 5.079 4.978 5.602 5.593 5.385 4.073 3.945 3.328 2.988 1.933 3.571 2.750 4.931 3.639 4.606 3.964 Page. 4 YTM Maturity Days To 365 Date Maturity 4.224 05/15/2009 1,595 4.431 0211212010 1,868 4.113 05/14/2010 4.100 08/13/2010 3.986 0211212010 4.034 0211212010 4.123 08/13/2010 4.300 06/08/2010 4.400 12110/2009 7.095 01/15/2005 6.649 08/26/2005 5.720 01/05/2007 5.779 03/19/2007 5.390 07/15/2005 5.610 07105/2006 5.610 07105/2006 5.351 09/13/2006 5.150 09/13/2006 5.048 01/15/2005 5.680 1211312006 5.670 06/14/2006 5.460 03/21/2007 4.130 0212012009 4.000 04130/2009 3.375 06/19/2009 3.030 06/11/2008 1.960 11/21/2006 3.620 09/15/2009 2.789 04/15/2008 5.000 11/03/2011 3.690 04/15/2009 4.670 09/15/2010 4.020 05/05/2010 1,959 2,050 1,868 1,868 2,050 1,984 1,804 14 237 734 807 195 550 550 620 620 14 711 529 809 1,511 1,580 1,630 1,257 689 1,718 1,200 2,497 1,565 2,083 1,950 Portfolio CPA AP FI (PRF JI) SymRept V6.21 Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3128X3M34 31359MFH1 31359MDWO 31359MDWO 31359CBH7 31364BVS6 31364BYP9 31364BQW3 31364CBY3 31364BYF1 31364BYF1 31359MGM9 31359CBH7 31364C2QO 31364C5H7 31364BGV6 31359MGM9 31359MGM9 31359MLH4 31364FAE1 31359MDU4 31359MEK5 313364GCB3 3136F3VG8 31359MMP5 3136F3R99 3136F3V86 31364FDU2 31364FKV2 31359MNP4 31364GCB3 31359MSBO 3136F45H3 Run Date: 01/11/2005 -16:31 579 Callable 310 312 314 317 319 320 322 333 354 355 366 371 376 378 387 399 400 443 445 450 469 470 474 Callable 488 495 Callable 497 Callable 503 505 506 515 525 529 Callable Issuer Federal Home Loan Mortgage Cor Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Federal National Mortgage Asso Fund· All Investments by Fund December 31, 2004 Purchase Date 11/19/2004 05/2212000 07/06/2000 08/01/2000 09/25/2000 10/17/2000 11/15/2000 12/1212000 03/01/2001 05/21/2001 05/2212001 07/13/2001 08/2212001 09/06/2001 09/10/2001 01/04/2002 04/24/2002 05/09/2002 12/03/2002 12/16/2002 01/10/2003 04/23/2003 04/23/2003 06/0212003 06/17/2003 07/21/2003 07/23/2003 07/23/2003 07/30/2003 07/30/2003 10/06/2003 01/06/2004 0212012004 Book Value 1,000,000.00 4,997,541.63 2,986,913.19 995,273.55 2,003,233.76 3,972,536.30 1,993,279.00 999,111.51 1,526,779.47 1,009,054.28 1,008,300.03 3,016,981.06 2,010,152.39 2,053,347.54 2,586,718.20 3,540,438.64 3,038,906.65 3,040,312.50 2,034,781.55 3,386,815.23 2,144,355.64 2,124,104.75 1,063,090.19 3,000,000.00 2,146,262.99 1,000,000.00 1,000,000.00 2,166,010.43 2,150,340.16 1,540,177.52 1,789,818.53 969,642.98 3,000,000.00 Par Value 1,000,000.00 5,000,000.00 3,000,000.00 .1,000,000.00 2,000,000.00 4,000,000.00 2,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 1,000,000.00 3,000,000.00 2,000,000.00 2,000,000.00 2,500,000.00 3,500,000.00 3,000,000.00 3,000,000.00 2,000,000.00 3,145,000.00 2,000,000.00 2,000,000.00 1,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 1,500,000.00 1,685,000.00 1,000,000.00 3,000,000.00 Current Market Value Rate YTM 360 1,005,890.00 5,026,550.00 3,042,180.00 1,014,060.00 2,019,380.00 4,118,320.00 2,073,260.00 1,027,260.00 1,572,405.00 1,038,440.00 1,038,440.00 3,084,390.00 2,019,380.00 2,150,300.00 2,697,975.00 3,578,645.00 3,084,390.00 3,084,390.00 2,040,000.00 3,394,681.55 2,151,880.00 2,111,260.00 1,050,790.00 2,934,390.00 2,083,760.00 982,810.00 985,630.00 2,152,600.00 2,149,220.00 1,531,410.00 1,770,581.15 964,690.00 3,005,640.00 4.400· 4.339 7.125 7.503 5.750 5.750 7.650 5.875 6.220 5.940 6.890 6.410 6.410 6.000 7.650 6.500 6.580 6.720 6.000 6.000 4.375 6.540 6.000 5.250 5.300 3.300 . 5.250 3.100 3.210 6.340 6.160 4.250 5.300 2.500 4.250 6.800 6.893 6.568 6.519 6.463 5.967 5.247 5.452 5.523 5.253 4.675 5.192 4.970 4.487 4.449 4.399 3.284 3.373 3.575 3.489 3.425 3.254 1.893 3.057 3.166 3.096 3.360 3.077 3.462 3.407 4.191 Page 5 TIM Md~~D~~ ~ D.~~~ 4.400 11/19/2010 2,148 7.607 0211512005 45 6.895 06/15/2005 6.989 06/15/2005 6.659 03110/2005 6.610 02114/2006 6.553 03/13/2006 6.050 1211212005 5.319 04/25/2006 5.527 03/08/2006 5.599 03/08/2006 5.326 1211512005 4.740 03/10/2005 5.264 07/16/2007 5.040 08/20/2007 4.550 08/01/2005 4.511 1211512005 4.460 12115/2005 3.329 10/15/2006 3.420 09/10/2007 3.625 05/15/2008 3.538 01/15/2009 3.473 10/28/2008 3.300 06/02/2009 1.920 04/15/2007 3.100 07/21/2008 3.210 07/23/200$ 3.140 10/16/2007 3.407 1211812007 3.119 07/15/2007 3.510 10/28/2008 3.454 06/15/2008 4.250 08/20/2009 165 165 68 409 436 345 479 431 431 348 68 926 961 212 348 348 652 982 1,230 1,475 1,396 1,613 834 1,297 1,299 1,018 1,081 925 1,396 1,261 1,692 Portfolio CPA AP FI (PRF JI) SymRept V6.21 Report Ver. 5.00 ,.> Fund -All Investments by Fund December 31, 2004 Purchase CUSIP Investment# Issuer Date Book Value Par Value Federal Agency Issues -Coupon 3136F5KG5 538 Callable Federal National Mortgage Asso 03/30/2004 1,500,000.00 1,500,000.00 31359MEY5 544 Federal National Mortgage Asso 03/30/2004 2,279,971.22 2,000,000.00 3136F5QC8 547 Callable Federal National Mortgage Asso 04/08/2004 2,000,000.00 2,000,000.00 31359MTZ6 548 Federal National Mortgage Asso 04/05/2004 1,488,068.64 1,500,000.00 31359MEY5 549 Federal National Mortgage Asso 04/05/2004 2,251,151.52 2,000,000.00 31359MFG3 554 Federal National Mortgage Asso 04/20/2004 1,719,482.05 1,500,000.00 31359MPZO 556 Federal National Mortgage Asso 04/27/2004 2,994,880.07 3,000,000.00 31359MEY5 559 Federal National Mortgage Asso 05/06/2004 1,100,863.10 1,000,000.00 31359MFS7 575 Federal National Mortgage Asso 11/09/2004 2,300,659.56 2,000,000.00 3136F6NB1 577 Callable Federal National Mortgage Asso 11/30/2004 2,000,000.00 2,000,000.00 86387RGS5 454 Student Loan Mortgage Associat 02104/2003 2,503,620.07 2,250,000.00 880591065 516 Tennessee Valley Authority 10/06/2003 1,066,432.57 1,000,000.00 880591D65 526 Tennessee Valley Authority 01/06/2004 1,060,215.43 1,000,000.00 31315PLG2 565 Federal Agricultural Mortgage 07/26/2004 3,964,305.91 4,000,000.00 3128X06KO 571 Federal Home Loan Mortgage Cor 10/05/2004 2,017,951.59 2,000,000.00 Subtotal and Average 344,484,440.90 337,235,000.00 Treasury Securities -Coupon 912810DU9 428 U.S. Treasury 09/11/2002 1,608,508.25 1,500,000.00 9128277F3 429 U.S. Treasury 09/11/2002 1,516,574.28 1,500,000.00 912827Z62 484 U.S. Treasury 06/1212003 2,171,710.69 2,000,000.00 Subtotal and Average 5,296,793.22 5,000,000.00 Ginnie Mae's 313401GA3 162 Federal Home Loan Mortgage Cor 02116/1979 8,687.15 8,840.01 36217GRE9 160 Govt. Nat!. Mortgage Assn 01/26/1987 53,055.54 51,463.39 Subtotal and Average 61,742.69 60,303.40 Total Investments and Average 374,616,973.95 367,069,300.54 Run Date: 01/11/2005 -16:31 Current YTM Market Value Rate 360 1,488,750.00 4.000 3.945 2,233,120.00 6.625 3.299 2,000,620.00 4.730 4.665 1,470,945.00 3.250 3.412 2,233,120.00 6.625 3.606 1,724,070.00 7.250 3.917 2,983,140.00 3.250 3.267 1,116,560.00 6.625 4.149 2,298,760.00 7.125 3.964 2,004,380.00 5.000 4.931 2,512,935.00 7.150 3.599 1,060,510.00 5.375 3.436 1,060,510.00 5.375 3.609 4,032,856.00 4.000 4.162 2,026,140.00 4.250 4.004 347,405,393.65 4.387 1,607,820.00 9.375 2.557 1,512,660.00 3.500 2.828 2,119,840.00 6.500 1.522 5,240,320.00 2.211 9,583.10 10.000 10.120 57,586.50 9.000 8.448 67,169.60 8.684 377,456,553.65 4.209 Page 6 YTM Maturity Days To 365 Date Maturity 4.000 03/30/2010 1,914 3.345 09/15/2009 . 1,718 4.730 04/08/2011 2,288 3.460 02115/2009 1,506 3.657 09/15/2009 1,718 3.972 01/15/2010 1,840 3.313 11/15/2007 1,048 4.207 09/15/2009 1,718 4.019 06/15/2010 1,991 5.000 11/28/2011 2,522 3.649 08/01/2008 1,308 3.483 11/13/2008 1,412 3.660 11/13/2008 1,412 4.220 07/15/2009 1,656 4.060 05/05/201 Q 1,950 --- 4.448 1,102 2.592 02115/2006 410 2.867 11/15/2006 683 1.543 10/15/2006 652 2.241 587 10.260 02101/2009 1,492 8.566 11/15/2016 4,336 8.804 3,935 4.267 1,023 Portfolio CPA AP FI (PRF ..FI) SymRept V6.21 Report Ver. 5.00 '" Attachment C 2 3 i General Investment Guidelines: . Investment Policy Compliance As of December 31,2004 a) Beg. FY 00-01, the max. stated final maturity of individual securities in the portfolio should be 10 years. Investment exceeding 10 years maturity that were authorized under investment policies prior to FY 00-01. b) A max. ono percent of the par value of the portfolio shall be invested in securities with maturities beyond 5 years. c) 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 securities maturing in less than 2 years. Plus two managed pool accounts which provide instant liquidity: -Local Agency Investment Fund (LAIF) -maximum investment limit is $40 million -Fidelity Investments e) Market value of the portfolio will exceed 95 percent of the amortized cost basis of the portfolio. d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. f) Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities (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) Securities will not exceed 10 years maturity. U.S. Government Agency Securities: a) There is no limit on purchase of these securities except for: Callable and Multi-step-up securities provided that: -The potential call dates are known at the time of purchase; -the interest rates at which they "step-up" are known at the time of purchase; and -the entire face value of the security is redeemed at the call date. -No more than 20 percent of the par value of portfolio. b) Beginning FY 00-01, securities will not exceed 10 years maturity. i Investment exceeding 10 years maturity. Authorized under investment policies prior to FY 00-01. 4 r' Certificat:-~~-;-:-~OSit: a) May not exceed 20 percent of the par value of the portfolio; b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by Moody's or Standard & Poors. I d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) I e) Rollovers are not permitted without specific instruction from authorized City staff. 5 1;:1 Ba~ker';~cce~tance Notes: . a) No more than 30 percent of the par value of the portfolio. 6 i b) Notto exceed 180 days maturity. c) .No more than $5 million with anyone institution. f----- Commercial Paper: a) No more than 15 percent of the par value of the portfolio. b) Having highest letter or numerical rating from Moody's or Standard and Poor's. c) Not to exceed 180 days maturity. Full Compliance 0.01% 14.81% Full Compliance $121.1 million $24 million $0.8 million 100.77% Full Compliance Full Compliance Full Compliance Full Compliance Full Compliance Full Compliance Full Compliance 19.56% 0.01% None Held None Held None Held d) No more than $3 million with anyone institution. -----_.-'-------_ .. _--' Inve~!menl Report Attachments.>!!s AUacl\menl C (New)