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Home My WebLink AboutStaff Report 225-05principal. 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 2.74 years. Investments Made During the Third Quarter During the third quarter, $18.0· million of government agency securities with an average yield of 6.4% percent matured. During the same period, government securities totaling $10.5 million with an average yield of 4.2% percent were purchased. The City's short-tenn money market and pool account increased by $1.4 million compared to the second quarter of 2004-05. 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 nonnal 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. Proj~ctions indicate receipts will be $147.5 million and expenditures will be $146.5 million over the next six months, indicating an overall growth of the portfolio of about $1.0 million. As of March 31, 2005, the City had $26.2 million deposited in the Local Agency Investment Fund (LAIF) and a money market account that could be withdrawn on a daily basis.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 $28.7 million will mature between April 1, 2005 and September 30, 2005. On the basis of the above projections, staff is 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 third quarter of 2004-05, staff complied with all aspects of the investment policy. Attachment C lists the restrictions in the City's investment policy compared with the portfolio's actual compliance. Investment Yields Interest income on an accrual basis for the third quarter of2004-05 was $3.9 million. As of March 31,2005, the yield to maturity ofthe City's portfolio was 4.19 percent. This compares to a yield of 4.27 percent in the second quarter of2004-05. With interest rates moving upward, staff expects the portfolio's yield to gradually increase in coming quarters. The City's portfolio yield of 4.19 percent compares to LAIF's average yield for the quarter of2.39 percent and an average yidd on the two- year and five-year Treasury bond during the third quarter of approximately 3.43 percent and 3.88 percent, respectively. Yield Trends Since June 2004, the Fedenil Open Market Committee (FOMC) has increased the federal funds rate by 1.75 percent and the discount rate by 1.50 percent. These rates currently are 2.75 and 3.50 percent, respectively. The FOMC has maintained 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. With energy and other costs increasing, the FOMC has revealed a CMR: 225:05 Page 2 of3 : Attachment A Consolidated Report City of Palo Alto Cash and Investments Third 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) Cash with Wells Fargo Bank (includes general and imprest accounts) Petty/Working Cash (as of 03/31/05) 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 Escrow Account for Partial Defeasance of Bonds 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 $ 368,220,514 313,250 5,516,969 14,195 5,844,414 10 14,404 165,497 350,759 342,801 978,979 36,170 727,001 872,915 3,171,363 2,565,930 9,225,829 $ 383,290,757 * These funds are subject to the requirements of the underlying debt indenture. Market Value' $ 365,700,630 313,250 5,516,969 14,195 5,844,414 10 14,404 165,497 350,759 342,801 978,979 36,170 727,001 872,915 3,171,363 2,565,930 9,225,829 $ 380,770,874 ** 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. Investmenl Report Attaehmll'lts.l<Is Attachment A 411912005 2:35 PM CUSIP Investment # Managed Pool Accounts SYS158 SYS159 158 159 Federal Agency Issues· Coupon 31315PHU6 521 31315PHU6 31315PJU4 31315PLG2 31331 RWF8 31331H2V8 31331H2V8 31331QHF7 31331 RYM1 31331QZ34 31331QZ42 31331 QZ91 31331QKV8 31331QZR1 31331TPQ8 31331QZR1 31331TUG4 31331SGB3 3133M4F81 3133M77K6 3133MCHS7 3133MBY92 3133M8X41 313395LC7 3133M9FD9 3133MEU66 Run Date: 04/19/2005 -14:36 531 560 568 313 315 372 446 456 490 Callable 491 Callable 499 Callable 502 510 523 Callable 528. 537 Callable 578 Callable 316 323 324 325 326 328 338 347 Issuer Fidelity Inveslments 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 ATTACHMENT B City of Palo Alto Investments by Fund March 31, 2005 Purchase Date 07/01/2004 07/01/2004 Subtotal and Average 1213012003 0210212004 05106/2004 07/29/2004 08/01/2000 09/20/2000 08/2212001 12117/2002 02107/2003 07/09/2003 07/09/2003 07111/2003 07123/2003 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 05/15/2001 Book Value 769,907.33 25,468,464.66 26,238,371.99 2,011,050.62 2,013,035.37 1,951,181.62 1,975,556.82 1,347,058.14 2,000,184.32 1,510,892.59 2,006,929.32 2,143,771.22 1,000,000.00 1,000,000.00 999,529.01 2,025,244.84 1,969,121.10 1,500,000.00 1,503,149.25 1,000,000.00 1,000,000.00 2,998,247.68 1,731,680.10 5,020,438.89 4,016,649.10 4,015,047.21 2,027,519.42 2,030,541.42 2,997,555.80 Par Value 769,907.33 25,468,464.66 26,238,371.99 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 3,000,000.00 Current Market Value Rate YTM 360 769,907.33 25,378,469.75 26,148,377.08 1,942,260.00 1,942,260.00 1,929,520.00 2,016,428.00 1,357,668.00 2,031,880.00 1,523,910.00 1,978,120.00 2,100,600.00 966,560.00 967,500.00 963,130.00 1,973,760.00 1,941,880.00 1,478,910.00 1,456,410.00 978,130.00 988,750.00 3,008,430.00 1,763,925.00 5,092,200.00 4,057,520.00 4,103,760.00 2,099,380.00 2,066,880.00 3,051,570.00 2.450 2.416 2.630 . 2.593 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 2:589 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 5.383 YTM Maturity Days To 365 Date MaturitY 2.450 2.630 2.625 3.590 11/10/2008 1,319 3.560 11/10/2008 4.074 02115/2009 4.319 07/15/2009 7.035 06/1712005 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 5.457 05/15/2006 1,319 1,416 1,566 77 165 165 763 1,224 1,195 1,925 1,923 976 1,026 1,375 1,026 > 2,160 ..., 1,690 ~ 35 (") 294 ~ 228 Z ..., 136 O:J 427 675 501 409 Portfolio CPA AP FI (PRF JI) SymRept 6.41.202a 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 3f33MYRRO 3133MW2K6 Run Date: 04/19/2005 -14:36 353 356 357 364 365 367 373 374 375 382 383 384 385 389 444 447 455 457 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 Loa'n Bank Investments by Fund March 31, 2005 Purchase Date 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 12114/2001 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 1,501,813.47 3,026,630.55 1,502,870.89 4,091,417.10 4,140,090.74 3,381 , 122.40 2,005,456.49 1,340,366.21 1,563,256.52 2,014,530.00 3,000,699.22 2,993,391.67 1,032,218.52 2,013,662.61 1,988,112.59 2,120,959.53 "2,116,283.31 2,000,000.00 2,123;312.95 3,218,660.24 2,514,111.16 784,512.08 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 2,097,314.39 1,528,523.67 2,027,935.61 1,526,316.68 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 1,527,195.00 3,100,320.00 1,507,500.00 4,229,200.00 4,295,000.00 3,388,450.00 2,034,380.00 1,381,250.00 1,610,625.00 2,034,380.00 3,045,000.00 3,045,000.00 1,060,000.00 2,023,120.00 1,966,880.00 2,095,620.00 2,083,760.00 1,961,880.00 2,084,380.00 3,175,320.00 2,464,148.85 771,750.00 2,947,500.00 1,933,120.00 1,928,120.00 1,446,090.00 1,433,445.00 958,440.00 958,750.00 2,030,000.00 1,470,945.00 1,943,760.00 1,470,945.00 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 2.750 06/25/2008 3.100 1213012008 2.870 07/0212008 1.770 11/15/2006 1.820 0211512007 1.938 05/15/2007 1.900 02/15/2007 355 501 42 731 774 42 409 866 774 409 593 593 866 105 958 1,091 1,361 2,916 1,398 1,459 1,452 1,565 1,883 2,086 1,357 1,357 1,181 1,369 1,188 593 685 774 685 Portfolio CPA AP FI (PRF JI) SymRept 6.41.202a Report VeL 5.00 CU51P Investment # Federal Agency Issues -Coupon 3133MYRRO 31339YFV9 31339YJR4 31339YKSO 31339YMH2 31339YRS3 3133MYSQl 3133M4ET6 3133XOE88 3133X1EE3 3133X1F77 3133XOLJ6 3133XOLJ6 3133XOLJ6 3133MEUC3 31339X5V2 31339YTD4 3133M1CY3 3133MABK4 3133X4HP9 3133X4H53 3133X5LCO 3133X5MQ8 3133X5QX9 3133MDAS2 3133X5VA3 3133X5V54 3133X6P83 3133MQSR6 3133X72TO 3133X73W2 3133MCLAl 3133X7SH8 Run Date: 04/19/2005 ·14:36 489 492 Callable 493 Callable 494 Callable 496 Callable 498 Callable 500 Callable 504 509 511 Callable 513 Callable 514 517 518 524 527 530 532 533 535 Callable 536 Callable 539 Callable 540 Callable 541 Callable 543 545 Callable 546 Callable 551 Callable 552 558 Callable 561 562 566 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 Investments by Fund. 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 10106/2003 10106/2003 10/16/2003 10/20/2003 01/06/2004 01/27/2004 01/29/2004 0210912004 02/09/2004 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 07/30/2004 March 31, 2005 Book Value 1,012,215.62 1,000,000.00 1,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 4,000,000.00 '1,080,166.11 1,987,422.91 1,500,000.00 1,000,000.00 1,513,212.40 2,007,916.48 3,007,161.60 1,597,529.50 2,950,814.11 1,985,421.25 1,938,027.59 1,338,482.90 2,000,000.00 1,000,000.00 1,500,000.00 1,000,000.00 2,000,000.00 1,617,119.96 1,000,000.00 1,000,000.00 1,000,000.00 2,050,926.20 1 ,000,000.00 996,652.44 1,637,258.26 2,001,858.23 Par Value 1,000,000.00 1,000,000.OU 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 971,880.00 961,880.00 967,810.00 958,440.00 1,456,875.00 971,250.00 3,890,000.00 1,058,130.00 1,953,120.00 1,489,695.00 990,630.00 1,472,820.00 1,963,760.00 2,945,640.00 1,567,035.00 2,862,180.00 1,938,760.00 1,892,730.00 1,305,756.00 1,970,000.00 986,250.00 1,455,000.00 968,750.00 1,954,380.00 1,558,590.00 978,440.00 979,060.00 993,750.00 2,001,880.00 999,690.00 986,560.00 1,648,590.00 1,991,880.00 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 4.250 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)02 4.043 4.339 4.783 3.796 4.931 4.034 4.654 4.167 Page 3 YTM 365 Maturity Days To 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 4.224 05/15/2009 774 1,209 1,200 1,399 1,937 1,216 1,337 1,131 866 2,023 2,014 1,232 1,232 1,232 1,140 1,140 1,202 1,588 1,687 2,170 1,629 2,209 2,021 1)60 1,050 1,839 2,210 2,218 1,596 2,237 1,505 2,054 1,505 Portfolio CPA AP FI (PRF JI) SymRepl 6.41.202a Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3133MATQ2 567 3133MVYZ4 3133MRCM2 3133MWBM2 3133MATQ2 3133X06Q7 3133X9NS5 3133X9NUO 31339XMX9 3133MRCM2 3133X2BX2 3133X2BX2 3134AOJFO 3134A1KC3 3134A1QR4 3134A34Q6 3.134A022 3134AOY22 3134A1AZ3 3134A1AZ3 3134A1GX2 3134AOS78 3134A1RG7 3128XOB32 3128X07J2 3128X1HU4 3128X1JDO 312924UM3 3134A3M78 3134A2DT2 3128X3AW3 3134A4UQ5 3134A35H5 Run Date: 04/19/2005 -14:36 569 570 572 573 574 580 Callable 581 Callable 582 584 585 586 318 327 329 330 331 332 334 341 350 358 361 452 Callable 467 Callable 476 Callable 477 Callable 479 534 542 550 Callable 553 563 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 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 Investments by Fund March 31, 2005 Purchase Date 07/29/2004 08/25/2004 10105/2004 10105/2004 10108/2004 10108/2004 1210812004 12110/2004 01/20/2005 01/27/2005 01/27/2005 03/01/2005 10/17/2000 01/23/2001 01/26/2001 0210112001 02123/2001 02123/2001 03/07/2001 03/26/2001 05i16/2001 05/31/2001 0612212001 02120/2003 04/30/2Q03 06/19/2003 06/11/2003 05/30/2003 0210912004 03/30/2004 05/03/2004 04/20/2004 06/18/2004 Book Value 1,688,599.60 1,933,190.13 1,030,666.38 1,492,721.58 2,289,606.66 1,500,013.77 1,000,000.00 1,000,000.00 1,953,326.04 1,544,900.36 2,009,499.62 1,988,057.02 500,232.96 4,057,764.44 2,033,304.47 2,008,166.98 3,044,483.54 2,029,655.86 2,555,509.83 2,562,164.97 2,525,865.92 2,133,613.51 2,049,552.44 1,500,000.00 2,000,000.00 3,000,000.00 2,000,000.00 3,143,801.53 1,680,199.37 2,169,054.96 800,000.00 988,416.60 1,654,840.03 Par Value 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 2,000,000.00 1,500,000.00 2,000,000.00 2,000,000.00 500,000.00 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 2,500,000.00 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 Current Market Value Rate 1,687,035.00. 1,898,120.00 1,010,000.00 1,459,215.00 2,249,380.00 1,467,195.00 984,060.00 991,560.00 1,913,760.00 1,515,000.00 1,968,120.00 1,968,120.00 507,655.00 4,186,240.00 2,105,620.00 2,022,500.00 3,118,140.00 2,078,760.00 2,616.400.00 2,616,400.00 2,600,775.00 2,185,323.00 2,111,260.00 1,483,635.00 1,967,140.00 2,879,970.00 1,928,780.00 3,051,570.00 1,630,320.00 2,087,500.00 796,000.00 966,880.00 1,665,945.00 7.375 3.375 4.750 3.875 7.375 4.125 4.300 4.400 3.660 4.750 4.250 4.250 6.790 6.700 6.800 7.000 6.990 6.990 7.140 7.140 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 YTM 360 4.370 4.056 4.044 3.931 3.978 4.067 4.241 4.339 4.081 4.063 4.096 4.310 6.558 5.641 5.700 5.316 5.533 5.533 5.277 5.079 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 Page 4 YTM Maturity Days To 365 Date Maturity 4.431 0211212010 1,778 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 12/10/2009 4.137 09/30/2010 4.120 08/13/2010 1,869 1,960 1,778 1,778 1,960 1,894 1,714 2,008 1,960 4.153 11/15/2010 2,054 4.370 11/15/2010 2,054 6.649 08/26/2005 5.720 01/05/2007 5.779 03/19/2007 5.390 07/15/2005 5.610 07/05/2006 5.610 07/05/2006 5.351 09/13/2006 5.150 09/13/2006 5.680 1211312006 5.670 06/14/2006 5.460 03/21/2007 4.130 0212012009 4.000 04/30/2009 3.375 06/19/2009 3.030 06/11/2008 1.960 11/21/2006 3.620 09/15/2009 2.789 5.000 3.690 4.670 04/15/2008 11/03/2011 04/15/2009 09/15/2010 147 644 717 105 460 460 530 530 621 439 719 1,421 1,490 1,540 1,167 599 1,628 1,110 2,407 1,475 1,993 Portfolio CPA AP FI (PRF JI) SymRept 6.41.202a Report Ver. 5.00 CUSIP Investment # Federal Agency Issues -Coupon 3128X06KO 576 3128X3M34 579 Callable 3134A33L8 587 31359MDWO 312 31359MDWO 31364BVS6 31364BYP9 31364BQW3 31364CBY3 31364BYF1 31364BYF1 31359MGM9 31364C2QO 31364C5H7 31364BGV6 31359MGM9 31359MGM9 31359MLH4 31364FAE1 31359MDU4 31359MEK5 313364GCB3 3136F3VG8 31359MMP5 3136F3R99 3136F3V86 31364FDU2 31364FKV2 31359MNP4 31364GCB3 31359MSBO 3136F45H3 3136F5KG5 Run Date: 04/19/2005 -14:36 314 319 320 322 333 354 355 366 376 378 387 399 400 443 445 450 469 470 474 Callable 488 495 Callable 497 Callable 503 505 506 515 525 529 Callable 538 Callable Issuer Federal Home Loan Mortgage Cor Federal Home Loan Mortgage Cor 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 Investments by Fund March 31, 2005 Purchase Date 11/09/2004 11/19/2004 03/10/2005 07/06/2000 08/01/2000 10/17/2000 11/15/2000 1211212000 03101/2001 05/21/2001 05/2212001 07/13/2001 09/06/2001 09/10/2001 01/04/2002 04/24/2002 05/09/2002 1210312002 12116/2002 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 03/30/2004 Book Value 1,515,625.52 1,000,000.00 2,232,661.27 2,994,094.97 997,867.33 3,978,669.63 1,994,679.21' 99g.,3~6.01 1,521,694.76 1,007,145.88 1,006,550.61 3,012,538.34 2,048,100.24 2,578,494.14 3,523,107.80 3,028,727.59 3,029,765.62 2,029,920.78 3,364,355.61 2,133,653.82 2,116,422.89 1,058,966.64 3,000,000.00 2,130,287.66 1,000,000.00 1,000,000.00 2,151,143.82 2,137,659.18 1,536,221.31 1,782,967.65 971,839.22 3,000,000.00 1,500,000.00 Par Value 1,500,000.00 1,000,000.00 2,000,000.00 3,000,000.00 1,000,000.00 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 2,50.0,000.00 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 1,500,000.00 Current Market Value Rat~ 1,479,780.00 987,650.00 2,217,500.00 3,015,930.00 1,005,310.00 4,071,480.00 2,046,240.00 1,016,400.00 1,548,285.00 1,024,620.00 1,024,620.0'0 3,050,640.00 2,104,080.00 2,638,550.00 3,542,105.00 3,050,640.00 3,050,640.00 2,015,000.00 3,319,390.25 2,101,260.00 2,061,260.00 1,026,410.00 2,872,500.00 2,046,880.00 963,440.00 966,560.00 2,104,600.00 2,100,060.00 1,505,160.00 1,729,500.85 948,440.00 2,964,390.00 1,458,750.00 4.250 4.400 7.000 5.750 5.750 5.875 6.220 5.940 6.890 6.410 6.410 6.000 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 4.000 YTM 360 3.964 4.339 4.301 6.800 6.893 6.519 6.463 5.967 5.247 5.452 5.523 5.253 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 3.945 PageS YTM Maturity Days To 365 Date Maturity 4.020 05/05/2010 .1,860 4.400 11/19/2010 2,058 4.360, 03/15/2010 1,809 6.895 06/15/2005 75 6.989 06/15/2005 6.610 02/14/2006 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 5.264 07/16/2007 5.0~0 08/20/2007 4.550 08/01/2005 4.511 4.460 3.329 1211512005 12/15/2005 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 06/0212009 1.920 04/15/2007 :3.100 ,07/21/2008 3.210 07/2312008 3.140 3.407 10/16/2007 1211812007 3.119 07/15/2007 3.510 10/28/2008 3.454 06/15/2008 4.250 08/20/2009 4.000 03/30/2010 75 319 346 255 389 341 341 258 836 871 122 258 258 562 892 1,140 1,385 1,306 1,523 744 1,207 1,209 928 991 835 1,306 1,171 1,602 1,824 Portfolio CPA AP FI (PRF_FI) SymRept 6.41.202a Report Ver. 5.00 Investments by Fund March 31, 2005 Purchase CUSIP Investment # Issuer Date Book Value Par Value Federal Agency Issues -Coupon 31359MEY5 544 Federal National Mortgage Asso 03/30/2004 2,265,096.71 2,000,000.00 3136F5QC8 547 Callable Federal National Mortgage Asso 04/08/2004 2,000,000.00 2,000,0'00.00 31359MTZ6 548 Federal National Mortgage Asso 04/05/2004 1,488,792.24 1,500,000.00 31359MEY5 549 Federal National Mortgage Asso 04/05/2004 2,237,808.17 2,000,000.00 31359MFG3 554 Federal National Mortgage Asso 04/20/2004 1,708,592.65 1,500,000.00 31359MPZO 556 Federal National Mortgage Asso 04/27/2004 2,995,325.71 3,000,000.00 31359MEY5 559 Federal National Mortgage Asso 05/06/2004 1,095,504.37 1,000,000.00 31359MFS7 575 Federal National Mortgage Asso 11/09/2004 2,286,881.88 2,000,000.00 3136F6NB1 571 Callable Federal National Mortgage Asso 11/30/2004 2,000,000.00 2,000,000.00 31359MFS7 583 Federal National Mortgage Asso 01/20/2005 1,141,527.95 1,000,000.00 86387RGS5 454 Student Loan Mortgage Associat 02/04/2003 2,485,925.64 2,250,000.00 8805910B5 516 Tennessee Valley Authority 10/06/2003 1,062,137.37 1,000,000.00 880591085 526 Tennessee Valley Authority 01/06/2004 1,056,322.19 1,000,000.00 31315PLG2 565 Federal Agricultural Mortgage 07/26/2004 3,966,271.93 4,000,000.00 3128X06KO 571 Federal Home Loan Mortgage Cor 10105/2004 2,017,111.86 2,000,000.00 Subtotal and Average 336,727,152.74 329,735,000.00 Treasury Securities -Coupon 912810DU9 428 U.S. Treasury 09/11/2002 1,584,689.37 1,500,000.00 9128277F3 429 U.S. Treasury 09/11/2002 1,514,390.26 1,500,000.00 912827Z62 484 U.S. Treasury 06/1212003 2,148,008.29 2,000,000.00 Subtotal and Average 5,247,087.92 5,000,000.00 Ginnie Mae's 313401GA3 162 Federal Home Loan Mortgage Cor 02116/1979 7,900.86 8,039.88 Subtotal and Average 7;900.86 8,039.88 Total Investments and Average 368,220,513.51 360,981,411.87 Run Date: 04/19/2005 -14:36 Current YTM Market Value Rate 360 2,173,120.00 6.625 3.299 1,980,000.00 4.730 4.665 1,440,465.00 3.250 3.412 2,173,120.00 6.625 3.606 1,674,840.00 7.250 3.!:l17 2,935,320.00 3.250 3.267 1,086,560.00 6.625 4.149 2,234,380.00 7.125 3.964 1,988,760.00 5.000 4.931 1,117,190.00 7.125 4.012 2,447,685.00 7.150 3.599 1,037,160.00 5.375 3.436 1,037,160.00 5.375 3.609 4,032,856.00 4.000 4.162 1,973,040.00 4.250 4.004 334,386,930.95 4.279 1,577,865.00 9.375 2.557 1,495,320.00 3.500 2.828 2,083,520.00 6.500 1.522 5,156,705.00 2.212 8,617.14 10.000 10.120 8,617.14 10.120 365,700,630.17 4.129 YTM 365 3.345 4.730 3.460 3.657 3.972 3.313 4.207 4.019 5.000 4.067 3.649 3.483 3.660 4.220 4.060 4.338 2.592 2.867 1.543 2.243 10.260 10.261 4.186 Page 6 Maturity Days To Date Maturity 09/15/2009 1,628 04/08/2011 2,198 02115/2009 1,416 09/15/200'9 1,628 01/15/2010 1,750 11/15/2007 . 958 09/15/2009 1,628 06/15/2010 1,901 11/28/2011 2,432 06/15/2010 1,901 08/01/2008 1,218 11/13/2008 1,322 11/13/2008 1,322 07/15/2009 1,566 05/05/2010 1,860 --- 1,086 02115/2006 320 11/15/2006 593 10/15/2006 562 497 02101/2009 1,402 --- 1,402 1,000 Portfolio CPA AP FI (PRF JI) SymRept 6.41.202a Report Ver. 5.00 · , 2 3 4 5 6 Attachment C I Investment Policy Compliance As of March 31,2005 General Investment Guidelines: a) Beg. FY 00-01, the max. ~tated final maturity of individual securities in the portfolio should be 10 years. b) A max. of 30 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 -Fi<\elity Investments e) Should market value of the portfolio fall below 95 percent ofthe book value, report this fact within a reasonable time to the City Council and evaluate if there are risk of holding securities to maturity. 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. Certificates of Deposit: a) May not exceed 20 percent of the par value of the portfolio; b) No more thl!-nl0 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. d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC) e) Rollovers are not permitted without specific instruction from authorized City staff. Banker's Acceptance Notes: a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with'any one institution. 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. d) No more than $3 million with anyone institution. Irwestmen, Repol1 AIIachmenls.xIs Allachm&lll C (Nawi Full Compliance 14.07% Full Compliance $118.1 million $25.5 million $0.8 million 99.32% Full Compliance - Full Compliance Full Compliance Full Compliance Full Compliance Full Compliance Full Compliance 19.34% None Held None Held None Held ~1191200S 2:37 PM i I I 7 8 9 10 11 12 Investment Policy Compliance As of March 31, 2005 Short-Term Repurchase Agreement (REPO): a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. Mutual Funds: a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with anyone institution. Negotiable Certificates of Deposit (NCD): a) No more than 10 percent of the par value of the portfolio. b) No more than $5 million in anyone institution. Medium-Term Corporate Notes: a) No more than 10 percent of the par value of the portfolio. b) Not to exceed 5 years maturity. Attachment C None Held None Held , None Held None Held c) Securities eligible for investment shall have a minimum rating of AA from Mood's andlor Standard & Poor's. - d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by either rating agencies to a level below AA it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities. Prohibited Investments: Full Compliance a) Reverse Repurchase Agreements None Held b) Derivatives as defined in Appendix B of the Investment Policy All securities shall be delivered to the City's safekeeping custodian, and held in the name of the Full Compliance City, with the exception of: -Certificates of Deposit, Mutual Funds, and LAIF Investmenl RepOfI AnachmenlSJlIs Maehment C (New) 4119120052:J7PM I