HomeMy WebLinkAboutStaff Report 1600City of Palo Alto (ID # 1600)
City Council Informational Report
Report Type: Informational Report Meeting Date: 5/2/2011
May 02, 2011 Page 1 of 3
(ID # 1600)
Title: Investment Activity Report
Subject: City of Palo Alto’s Investment Activity Report for the Third Quarter,
Fiscal Year 2011
From:City Manager
Lead Department: Administrative Services
BACKGROUND
The purpose of this report is to inform Council of the City’s investment portfolio status as of the
end of the third quarter. The City’s investment policy 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 information.
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 $361.7 million; in comparison, last quarter it was $351.5
million. The growth in the portfolio of $10.2 million since the last quarter primarily results from
the timing of cash flows and City’s effort to constrain expenditures. For example, due to the
timing of payroll periods, third quarter expenditures were lower. The portfolio consists of
$21.8 million in liquid accounts and $339.9 million in U. S. government treasury investments,
agency securities, and certificates of deposit. The $339.9 million includes $85.8 million in
investments maturing in less than two years, comprising 25.2 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 of the portfolio is 103.1 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 portfolio will likely increase; likewise,
when interest rates increase, the market value of the securities will likely decrease.
Understanding and showing market 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 practice is to buy and hold investments until they mature so changes in
May 02, 2011 Page 2 of 3
(ID # 1600)
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 3.59 years compared to 3.42 years last quarter.
Investments Made During the Third Quarter
During the third quarter, $27.2 million of government agency securities with an average yield of
4.2% percent matured. During the same period, government securities totaling $38.0 million
with an average yield of 2.7% percent were purchased. As higher yielding maturing investments
continue to be re-invested at lower interest rates, the portfolio’s yield is expected to further
decline. The City’s short-term money market and pool account decreased by $0.7 million
compared to the second 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 funds for ongoing expenditures in those respective funds. Projections
indicate receipts will be $191.1 million and expenditures will be $186.2 million over the next six
months, indicating an overall growth in the portfolio of $4.9 million.
As of March 31, 2011, the City had $21.8 million deposited in the Local Agency Investment Fund
(LAIF) and a money market account that could be withdrawn on a daily basis. In addition,
investments totaling $15.7 million will mature between April 1, 2011 and September 30, 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 third 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 third quarter was $2.9 million. As of March 31,
2011, the yield to maturity of the City’s portfolio was 3.20 percent. This compares to a yield of
3.32 percent in the second 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 3.20 percent compares to LAIF’s average yield for the quarter
of 0.50 percent and an average yield on the two-year and five-year Treasury bonds during the
third quarter of approximately 0.67 percent and 2.10 percent, respectively.
Yield Trends
In the last nine quarters, the Federal Open Market Committee (FOMC) maintained the historical
low federal funds and discount rate at 0.25 and 0.75 percent, respectively. The FOMC outlook
is that the continued slow pace of the economic recovery without significant improvement in
the labor market requires maintenance of low interest rates to stimulate economic activity.
May 02, 2011 Page 3 of 3
(ID # 1600)
Businesses hiring remains tepid, household spending pickup are threatened by rising oil prices,
and the housing market continues to be weak. The FOMC is expected to maintain lower rates
for an extended period to create jobs and sustain the economic growth. 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 report 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 March 31, 2011.
FISCAL IMPACT
This is an information report.
ENVIRONMENTAL REVIEW
This information report is not a project under the California Environmental Quality Act;
therefore, an environmental review is not required.
Attachments:
·Attachment A: Consolidated Report of Cash Management (PDF)
·Attachment B: Investment Portfolio, as of March 31, 2011 (PDF)
·Attachment C: Investment Policy Compliance (PDF)
Prepared By:Tarun Narayan, Senior Financial Analyst
Department Head:Lalo Perez, Director
City Manager Approval: James Keene, City Manager
Book Value Market Value
City Investment Portfolio (see Attachment B)366,517,780$ 377,951,246$
Other Funds Held by the City
Cash with Wells Fargo Bank 881,939 881,939
(includes general and imprest accounts)
Investment with CAMP (University Ave. Parking Garages)585,388 585,388
Petty/Working Cash 12,258 12,258
Total - Other Funds Held By City 1,479,585 1,479,585
Funds Under Management of Third Party Trustees *
US Bank Trust Services **
1998 Golf Course Certificates of Participation
Debt Service Lease Payment Funds 154 154
2002 Civic Center (Tax Exempt) Certificates of Participation
Reserve Fund 348,094 348,094
2002 Downtown Parking Impvt. (Taxable) Certificates of Participation
Reserve Fund 247,725 247,725
2002 Utility Revenue Bonds
Debt Service Fund 75,061 75,061
2009 Water Revenue Bonds (Build America Bonds)
Project, Debt Service, Reserve, Cost of Issuance Funds 29,200,178 29,200,178
2010 General Obligation (Library) Bonds
Cost of Issuance Fund 37,877 37,877
California Asset Management Program (CAMP) ***
1998 Golf Course Certificates of Participation
Reserve Fund 624,068 624,068
2001 University Ave. Parking Bonds
Reserve Fund 640,864 640,864
2002 University Ave. Parking Bonds
Reserve and Admin. Funds 3,265,000 3,265,000
2002 Utility Revenue Bonds
Reserve Funds 1,841,175 1,841,175
2010 General Obligation (Library) Bond
Project Fund 45,021,061 45,021,061
Total Under Trustee Management 81,301,257 81,301,257
GRAND TOTAL 449,298,623$ 460,732,089$
* These funds are subject to the requirements of the underlying debt indenture.
** 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.
Third Quarter, Fiscal Year 2010-11
(Unaudited)
(Debt Service Proceeds)
Attachment A
Consolidated Report
City of Palo Alto Cash and Investments
CUSIP Investment #
Certificates of Deposit -Bank
9244804549 674
Managed Pool Accounts
SYS158
SYS159
158
159
Federal Agency Issues -Coupon
30769PAAO
31315PLR8
31315PMD8
31315PES4
31315PEY1
31315PGE3
31315PAT6
31315PNM7
31315PQN2
31315PRG6
31315PTU3
31315PTG4
31331VY91
31331V4E3
31331VWS1
31331S3H4
31331XBSO
31331XCY6
31331VTY2
31331XGX4
31331XPB2
31331XSR4
Run Date: 0410712011 • 15:40
645
820
821
838
839
840
866
923
935
936
942
943 Callable
653
655
657
658
659
660
662
666
677
690
Issuer
Certificate of Deposit
Fidelity Investments
Local Agency Investment Fund
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
Federal Agricultural Mortgage
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 Credil Bank
Federal Farm Credit Bank
ATTACHMENT B
City of Palo Alto
Fund All -Portfolio listings
Investments by Fund
March 31, 2011
Purchase
Date
11/24/2006
Subtotal and Average
07/01/2010
07/01/2010
Subtotal and Average
0712012006
0811112009
08/10/2009
12/3012009
1213012009
01/19/2010
0511712010
12/28/2010
02/03/2011
0210312011
03/09/2011
0310912011
0912612006
10/12/2006
10/16/2006
10116/2006
1012512006
1110612006
11/1612006
1211112006
0210712007
0312712007
Book Value
166,880.94
166,880.94
1,560,855.00
20,282,094.77
21,842,949.77
1,999,795.21
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000.00
2,000,000.00
1,000,000,00
1.500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
2,015,530.16
4,005,563.88
2,040,472.73
1,484,842.24
3,000,000.00
2,000,000.00
2,008,486.89
2,000,000.00
2,000,000.00
2,000.000.00
Par Value
166,880.94
166,880.94
1,560,855.00
20,282,094.77
21,842,949.77
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000.00
2,000,000.00
1,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1.500,000.00
2,000,000.00
2,000,000.00
4,000,000.00
2,039,000.00
1,500,000.00
3,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
Current
Market Value Rate
166,880.94
166,880.94
1,560,855.00
20,320,931.94
21,881,786.94
2,030,480.00
2,085,820.00
2,044,180.00
2,055,580.00
1,541,415.00
2,151,720.00
1,050,010.00
1,486,125.00
1,498,560.00
1,504,035.00
1,508.325.00
1,995,940.00
2,195,280.00
4,467,920.00
2,263,799.75
1,641,465.00
3,291,480.00
2,213,980.00
2,169,660.00
2,097,680.00
2,159,500.00
2.198.240.00
4.020
0.010
0.440
5.500
3.250
2.100
2.820
4.500
4,125
3.750
3.150
1.340
2.440
4.160
4.410
5.280
5.180
5.200
4.750
5.050
5.050
5.200
4.625
5.150
4.875
YTM
360
4.069
4.070
0.009
0.433
0.404
5.465
3.205
2.071
2.781
4.438
4.068
3.698
3.106
1.321
2.406
4.103
4.349
4.827
5.059
5.100
5.104
4.979
4.980
4.877
4.561
5.079
4.807
City of Palo Alto
Administration SVGS. Dept
250 Hamilton Ave., 4th Floor
Palo Alto, CA 94301
(650)329-2362
YTM Maturity Oays To
365 Oate Maturity
4.126 09/24/2011
4.126
0.010
0.440
0.409
5.541 07/15/2011
3.250 0811112014
2.100 08110/2012
2.820 1213012014
4.500 1213012019
4.125 0111912017
3.750 0511712017
3.150 12/2812017
1,340 0210312014
2.440 0113112016
4.160 03/0912021
4.410 0310912021
4.894 0811612013
5.130 0911512014
5.171 0411712014
5.175 02118/2014
5.048 1112512013
5.050 0510612015
4.945 03/2012013
176
176
105
1,228
497
1,369
3,195
2,120
2,238
2,463
,039
1,766
3.630
3.630
868
1,263
1,112
1,054
969
1,496
719
4.625 0611112012 437
5.150 0210712013 678
4.874 03/1412014 1,078
Portfolio CPA
AP
FI (PRF_FI)
Report Ver. 7.3.1
~ ~ ~ Z
""' b:I
CUSIP Investment #
Federal Agency Issues -Coupon
31331XVH2
31331XWU2
31331XA36
31331XB27
31331XC26
31331XD74
31331XC26
31331XK35
31331XU75
31331X2JO
31331X2U5
31331X3H3
31331X5Y4
31331YCJ7
31331YER7
31331YHQ6
31331VCQ7
31331SKH5
31331YSV3
31331GLM9
31331GPN3
31331GLT4
31331GL80
31331GU31
31331GZ44
31331G6D6
31331JFZ1
31331JKH5
31331JKW2
31331JQB2
31331YELO
31331JZX4
Run Date: 04/0712011 -15:40
692
693
701
702
703
705
707
709
715
717
719
720
721
722
724
725
742
744
747
779 Callable
785
788
823
825
826
835
850
856 Callable
858 Callable
870
872
896 Callable
Issuer
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 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 Farm Credit Bank
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Farm Credit Bank
Fund ALL ~ Portfolio Listings
Investments by Fund
March 31, 2011
Purchase
Date
0411212007
0412512007
0512512007
0610512007
0610512007
0611212007
0610812007
0710512007
0812012007
0910412007
0910612007
0911712007
1010312007
1013012007
1112112007
1211212007
0113012008
0113012008
0211112008
0112712009
0310412009
0310412009
0812112009
0912412009
1011512009
1210912009
0310812010
04/12/2010
04119/2010
0610212010
0610412010
09/10/2010
Book Value
2,000,000.00
2,000,000.00
2,000,000.00
3,500,000.00
2,000,000.00
2,000,000.00
2,981,592.37
2,000,000.00
3,008,362.94
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000,00
2,000,000.00
2,000,000.00
2,000,000.00
2,062,030.63
1,020,739.65
1,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,000,000.00
2,195,505.21
1,500,000.00
Par Value
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
3,000,000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,000,000.00
1,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000.00
,500,000.00
,000,000.00
2,000,000.00
1,500,000,00
Current
Market Value Rate
2,092,180,00
2,006,260.00
2,014,840,00
3,832,605.00
2,228,740,00
2,214,060.00
3,343,110,00
2,026,880.00
3,335,430.00
2,122,600.00
1,529,895.00
1,658,565.00
1,667,475.00
2,224,240.00
2,051,720.00
2,181,840.00
2,220,200.00
1,096,240.00
1,608,420.00
2,038,720.00
1,550,655,00
1,062,210,00
2,090,100.00
2,034,340.00
2,027,220.00
2,007,860.00
2,063,740.00
1,501,680,00
1,534,635.00
1,004,510.00
2,215,260.00
1,499,295. DO
4.875
4,800
5.050
5.200
5.250
5.330
5,250
5.250
5.300
4,930
4.750
5,000
5.000
4.900
4.350
4.625
4.800
4.500
3.850
4.000
2.600
3.750
3.000
1.800
1.550
0.875
3.375
4.000
3.740
3.000
5.000
0.620
YTM
360
4.808
4.734
4.980
5.130
5.178
5,257
5.409
5,178
5.128
4.862
4.684
4.931
4.931
4.832
4.290
4.561
3.945
3,820
3.797
3.944
2.564
3.698
2,959
1.775
1.528
0.863
3.328
3.945
3.688
2.958
3.027
0.611
Page 2
YTM Maturity Days To
365 Date Maturity
4.875 0411212012
4.800 04/25/2011
5.050 05/25/2011
5.201 08/05/2013
5.250 06/05/2014
5.330 12/1812013
5.484 0610512014
5.250 0710512011
5.199 08/13/2014
4.930 09/04/2012
4.750 09106/2011
5.000 09/17/2014
5.000 1010312014
4.900 10130/2017
4.350 1112112011
4.624 1211512017
4.000 10/19/2015
3.873 01122/2015
3.850 02/1112015
3.999 01125/2019
2.600 0310412013
3.749 01129/2016
3.000 09/22/2014
1,800 09/24/2012
1.550 10/15/2012
0.875 12/09/2011
3.375 03/08/2017
4,000 04/12/2018
3.740 04/19/2017
3.000 06/0212017
3.070 11115/2016
0.620 09/10/2012
377
24
54
857
1,161
992
1,161
95
1,230
522
158
1,265
1,281
2,404
234
2,450
1,662
1,392
1,412
2,856
703
1,764
1,270
542
563
252
2,168
2,568
2,210
2,254
2,055
528
Portfolio CPA
AP
7.1.1
731
CUSIP Investment #
Federal Agency Issues -Coupon
31331JZA4
31331JN90
31331JP80
31331JU92
31331JX32
31331J5F6
31331JX32
31331J2M4
31331KBX7
31331KGG9
3133XFJY3
3133XG3W2
3133XF5T9
3133X9ZZ6
31339Y7K2
3133XHBL5
3133XHXW7
3133XHW57
3133XJUT3
3133XGJ96
3133XGJ96
3133XLDG5
3133XLDG5
3133XPBA1
3133XPBA1
3133XPTJ3
3133XSP93
3133XTCS3
3133XTFQ4
3133XTP26
3133XTQH2
3133XTYD2
Run Date: 0410712011 -15:4D
898 Callable
903
904 Callable
909 Callable
910
918
925
932
937
944 Callable
642
644
648
649
652
654
663
667
685
699
706
710
713
730
741
751 Callable
777
789
793
812 Callable
817
818
Issuer
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
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 -Portfolio Listings
Investments by Fund
March 31, 2011
Purchase
Date
0812412010
0912912010
1010512010
1012612010
10/2812010
1211612010
01/04/2011
01/14/2011
02/1012011
03/30/2011
07/07/2006
07/11/2006
09/12/2006
0911212006
0912612006
1011212006
1127/2006
12/14/2006
0212312007
05/16/2007
0610812007
06128/2007
0812012007
0112512008
01/30/2008
02/28/2008
01/16/2009
03/1612009
04/01/2009
OS/20/2009
05122/2009
0611612009
Book Value
1,500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,429,656.34
2,899,355.66
2,000,000.00
1,500,000.00
1,998,959.60
2,000,369.44
1,999,446.08
1,991,909.70
2,003,112.90
1,988,563.45
2,000,000.00
2,000,000.00
2,000,000.00
2,009,838.74
995,983.09
2,500,000.00
3,016,286.73
2,000,000.00
2,956,524.42
1,500,000.00
3,042,712.41
2,000,000.00
3,000,000.00
1,500,000.00
1,500,000.00
2,000,000.00
Par Value
1,500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,000,000.00
2,000,000.00
1,500,000.00
3,000,000.00
2,000,000.00
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
1,000,000.00
2,500,000.00
3,000,000.00
2,000,000.00
3,000,000.00
1,500,000.00
3,000,000.00
2,000,000.00
3,000,000.00
1,500,000.00
1,500,000.00
2,000,000.00
Current
Market Value Rate
1,451,265.00
926,470.00
1,419,060.00
1.924,640.00
1,900,820.00
1,965,800,00
1,425,615.00
2,873,250.00
2,011,940.00
1,492,440.00
2,019,020.00
2.025,820.00
2,041,580.00
2,063,800.00
2.173,620.00
2,204,180.00
2,186.740.00
2.186,100.00
2,086,980.00
2,194,980.00
1,097,490.00
2,792,400.00
3,350,880.00
2,116,940,00
3,175,410.00
1,551,210.00
3,137,190.00
2,087,960.00
3,122,610.00
1.507.800.00
1,523,070.00
2,154,160.00
2.520
2.875
3.240
2.500
1.700
3.625
1.700
1.875
2.875
3.000
5.250
5.600
5.000
4.500
5.000
4.875
4.875
4.875
5.000
5.250
5.250
5.375
5.375
3.500
3.500
4.500
3.125
3.000
2.900
4.080
1.800
4.000
YTM
360
2.485
2.835
3.195
2.466
1.676
3.575
2.576
2.483
2.835
2.958
5.483
5.435
5.002
5.040
4.850
5.020
4.808
4.806
4.929
4.943
5.369
5.300
5.099
3.451
3.869
4.421
2.794
2.958
2.860
4.024
1.775
3.945
Page 3
YTM Maturity Days To
365 Date Maturity
2.520 1112412017
2.875 0912912020
3.240 1010512020
2.500 0112612018
1.700 10/2812016
3.625 12116/2020
2.611 10128/2016
2.518 1112212016
2.875 02110/2017
3.000 03/30/2017
5.560 06/10/2011
5.511 06/28/2011
5.072 09109/2011
5.110 0110612012
4.918 07116/2013
5.089 0611312014
4.875 11127/2013
4.873 1211312013
4.997 0310912012
5.011 0911312013
5.444 0911312013
5.374 0611312014
5.170 0611312014
3.499 0311312015
3.923 0311312015
4.482 0212812018
2.833 12113/2013
2.999 03/13/2014
2.900 04/01/2014
4.080 05/20/2019
1.800 05/22/2012
4.000 06/16/2015
2,429
3,469
3,475
2,492
2,037
3,547
2,037
2,062
2,142
2,190
70
88
161
280
837
1,169
971
987
343
896
896
1,169
1,169
1,442
1,442
2,525
987
1,077
1,096
2,971
417
1,537
Portfolio CPA
AP
FI (PRF ]1) 7.1.1
ReportVer. 7.3.1
CUSIP Investment #
Federal Agency Issues -Coupon
3133XUCX9 819
3133XUMS9
3133XUMR1
3133XDTL5
3133XVRJ2
3133MJQFO
3133XW4W6
3133XWRQ4
3133XWX53
3133XWX95
3133XWW47
3133XXXK8
3133XEUG2
3133XHVS8
3133XYLN3
3133XYVXO
3133XVNU1
3133XUMR1
3133XWNB1
3133X6DM4
3133705P9
31337051'1
3133706K9
313370RP5
3133701'64
313371702
313371FB7
313371 FT8
313371 PV2
313371PU4
313371VFO
313371WB8
Run Date: 0410712011 -15:40
822
827
830
832
833
837
843 Callable
845
847
854
857 Callable
859
860
867 Callable
875
878
879
883
885
886
887
888 Callable
899 Callable
900
901
907
908 Callable
911
912
913
914
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
Fund All -Portfolio listings
Investments by Fund
March 31, 2011
Purchase
Date
07/20/2009
0811212009
10121/2009
10/21/2009
11119/2009
11/19/2009
12111/2009
02/1012010
0210312010
02119/2010
03/19/2010
0411612010
0412612010
04/26/2010
06/08/2010
06/2912010
06/23/2010
06/23/2010
0612912010
0612912010
0711612010
0710812010
0712112010
0911312010
08/3012010
0912712010
1012212010
10127/2010
1110912010
11109/2010
1111912010
11124/2010
Book Value
2,000,000.00
3,000,000.00
1,019,867.74
3,237,093.85
3,019,228.37
1,323,099.98
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,116,157.89
1,500,000.00
1,607,317.59
1,615,067.86
1,500,000.00
2,000,000.00
3,070,497.47
1,561,506.71
1,544,351.20
2,198,125.77
1,500,000.00
1,500,000.00
1,500,000.00
1,000,000.00
2,000,000.00
,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
Pa.r Value
2,000,000.00
3,000,000.00
1,000,000.00
3,000,000.00
3,000,000.00
1,200,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,115,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
3,000,000.00
1,500,000.00
1,500,000.00
2,000,000.00
1,500.000,00
1,500,000.00
1,500.000.00
,000,000.00
2,000.000.00
1,000.000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000.000.00
2,000,000.00
Current
Market Value Rate
2,034,840.00
3,215,100.00
1,051,710.00
3,378,480.00
3,097,350.00
1,374,720.00
2,021,880,00
2,000,940.00
2,014,520.00
2,060,200.00
2.130,228.00
1,520,955,00
1,670.925.00
1,681,005.00
1.505,100.00
2,014,060.00
3,098,760.00
1,577,565.00
1,559,820.00
2,210,340.00
1,504,755.00
1,506,120.00
1,463,610.00
961,560.00
1,989,240.00
987,300.00
1,931,560.00
1,441,410.00
1,415,685.00
1,467,360.00
1,944,480.00
1,968,580.00
1875
4.500
3.250
5.000
3.500
5.500
1.500
4.370
1.100
2]50
1.125
4.375
4.875
5.000
3.550
1.125
2.750
3.250
2.875
4.750
0.700
1.080
3.600
2.820
0.850
.000
1.350
1.850
1.625
0.500
1.625
1.150
YTM
360
2.210
4.437
2.594
3.101
3.325
3.304
1.479
4.310
1.085
2.711
1.051
4.315
3.227
3.430
3.501
1.109
2.052
1.975
2.099
2.022
0.690
1.065
3.550
2.781
0.838
0.986
1.331
1.824
1.602
0.589
.602
1.134
Page 4
YTM Maturity Days To
365 Date Maturity
2.240 07/2312012
4.499 09/1312019
2.631 0911212014
3.145 1212112015
3.372 1210912016
3.350 08/15/2016
1.500 12/11/2012
4.370 0211012020
1.100 04/0312012
2.749 03113/2015
1.065 03/0912012
4.375 04/1612020
3.272 0311112016
3.478 1210912016
3.550 06/0812017
1.125 10/29/2012
2.081 12/1212014
2.003 0911212014
2.128 06/1212015
2.051 0211312015
0.700 0411612012
1.080 0410812013
3.600 07121/2020
2.820 0311312019
0.850 07/2912013
1.000 0212712014
1.350 0812812015
1.850 04/27/2016
1.624 12/09/2016
0.597 12/13/2013
1.625 12/1112015
1.150 07/24/2014
479
3,087
1.260
,725
2,079
1,963
620
3,237
368
1,442
343
3,303
1,806
2,079
2,260
577
1,351
1,260
1,533
1,414
381
738
3,399
2,903
850
1,063
1,610
1.853
2,079
987
1,715
1,210
Portfolio CPA
AP
CUSJP Investment #
Federal Agency Issues -Coupon
313371PV2
313371NW2
313372AD6
3133MJQFO
313371PV2
3133XFPR1
313372H49
313372Q56
3133XOPFO
313372TS3
3133XSZ50
3133XTFD3
3133XTHE9
3128X1KG1
3128X1 KG1
3134A4UM4
3128X6N85
3128X8E73
3128X33E1
3134G1GY4
3134G1KP8
3128X2RA5
3134G1LN2
3134A4VG6
3134G1VSO
3134G1H72
3134A4ZT4
3134G1R97
3134G1W83
31364FBV2
31364KSSO
313586UB3
Run Date: 04/07/2011 15:40
920
921
922 Callable
924
926
931
933 Callable
938
940
941 Callable
781
792
794
679
682
714
734 Callable
808 Callable
828
873 Callable
882 Callable
884
889 Callable
890
905 Callable
916 Callable
927
930 Callable
934 Callable
678
683
743
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 -S & P
Federal Home Loan Bank -S & P
Federal Home Loan Bank -S & P
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Fed. Home Loan Mortgage Corp.
Federal National Mortgage Asso
Federal National Mortgage Asso
Federal National Mortgage Asso
Fund ALL -Portfolio Listings
Investments by Fund
March 31, 2011
Purchase
Date
12/15/2010
12/15/2010
01/05/2011
01/04/2011
01/0412011
01/14/2011
02/16/2011
02/18/2011
0211712011
03/14/2011
02/06/2009
03/27/2009
04113/2009
02/07/2007
02/15/2007
08/20/2007
01/31/2008
05/19/2009
10/21/2009
06/30/2010
07/14/2010
06/29/2010
07120/2010
07/07/2010
10/21/2010
12/23/2010
01/0412011
01119/2011
01/27/2011
0210712007
02115/2007
01/30/2008
BookVaJue
1,424,455.04
1 ,443,823.50
1,500,000.00
1,720,065,47
1,421,116.80
3,432,684.06
1,500,000.00
1,500,000.00
2,245,332.69
1,500,000,00
2,000,000.00
2,000,000.00
2,000,000.00
1,469,867.57
1,961,238.57
1,971,574,39
1,500,000.00
1,500,000,00
2,162,396,27
1,500,000.00
1,500,000.00
4,512,239,57
1,500,000.00
4,449,388.39
1,500,000.00
1,350,000.00
1,669,543,93
1,500,000.00
1,500,000.00
2,036,600.59
1,445,972.10
3,753,783.39
Par Value
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
3,000,000.00
1,500,000.00
1,500,000.00
2,000,000.00
1,500,000.00
2,000,000.00
2,000,000.00
2,000,000.00
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
4,000,000.00
1,500,000.00
4,000,000.00
1,500,000.00
1,350,000.00
1,500,000.00
1,500,000.00
1,500,000.00
2,000,000.00
1,500,000.00
3,000,000.00
Current
Market Value Rate
1,415,685.00
1,439,790.00
,492,845.00
1,718,400.00
1,415,685.00
3,409,140,00
1,498,080.00
1,517,355.00
2,272,660.00
1,503,615.00
2,029,840.00
2,079,000.00
2,037,680.00
1,598,595.00
2,131,460.00
2,173,820.00
1,633,635,00
1 ,503,705.00
2,233,200.00
1,505,220,00
1,499,955.00
4,518,760.00
1,493,190.00
4,431,520.00
1,493,655.00
1,330,560.00
1,661,430.00
1,501,890.00
1,492,470.00
2,164,880.00
1,525,710.00
4,052,580.00
1.625
1.375
4.150
5.500
1.625
5.375
2.500
2.650
5.375
3.500
2.100
2.850
2.000
4.000
4.000
4.500
4.300
2.170
5.050
3.000
3.000
5.300
2.375
4.750
1.125
2.000
4.750
2.700
3.000
6,470
2.000
10.350
YTM
360
2.550
2.191
4.093
2.516
2.592
2.363
2,465
2.613
3,423
3.452
2.071
2.810
1.972
5.010
4.970
5.033
4.241
2.140
2.713
2.958
2.958
2.327
2.342
2.135
1,109
1.972
2.215
2.663
2.958
4.967
4.956
3.987
Page 5
YTM Maturity Days To
365 Date Maturity
2.585 12/0912016
2.221 12/11/2015
4.150 01/05/2021
2.550 08/15/2016
2.629 1210912016
2.396 06/10/2016
2.500 02/16/2016
2.650 02/2612016
3,470 08/15/2018
3.500 03/14/2018
2.100 0210612012
2.850 03/2712014
2.000 07/13/2012
5.080 06/12/2013
5.040 06/1212013
5.103 01/15/2014
4.300 01/31/2015
2.170 11/19/2012
2.751 0112612015
3.000 0613012016
3.000 07/14/2016
2.360 1210112015
2.375 07/20/2015
2.165 11/17/2015
1.125 10/21/2013
2.000 12123/2015
2.245 01/1912016
2.700 01119/2016
3.000 01/2712017
5.036 09/25/2012
5.025 08/17/2012
4.043 12/10/2015
2,079
1,715
3,567
1,963
2,079
1,897
1,782
1,792
2,693
2,539
311
1,091
469
803
803
1,020
1,401
598
1,396
1,917
1,931
1,705
1,571
1,691
934
1,727
1,754
1,754
2,128
543
504
1,714
Portfolio CPA
AP
FI (PRF ]1) 7.1.1
Report Ver. 7.3.1
CUSIP Investment #
Federal Agency Issues -Coupon
31398APN6
3136F9ES8
31398ANT5
31398AXB3
3136FHPX7
31359MXX6
3136FJXY2
31359MZCO
3136FMV84
3136FM2G8
3136FM6X7
3136FPEQ6
3136FPNW3
3136FPQK6
3136FPP68
3136FPR90
31359MS61
3136FP2J5
880591DT6
880591CWO
880591CWO
880591DL3
880591DY5
880591EA6
880591DT6
761 Callable
763 Callable
776
798 Callable
805 Callable
829
836
891
893 Callable
894 Callable
895 Callable
897 Callable
902 Callable
906 Callable
915 Callable
919 Callable
928
929 Callable
643
656
661
684
716
861
863
Treasury Securities -Coupon
912828HK9 769
912828MQO 855
912828ML 1 862
912828ML 1 871
Run Date: 0410712011 -15:40
Issuer
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
Tennessee Valley Authority
Tennessee Valley Authority
Tennessee Valley Authority
Tennessee Valley Authority
Tennessee Valley Authority
Tennessee Valley Authority
Tennessee Valley Authority
U.S. Treasury
U.S. Treasury
U.S. Treasury
U.S, Treasury
Fund ALL -Portfolio Listings
Investments by Fund
March 31, 2011
Purchase
Date
0410812008
0410212008
0111612009
0510512009
0511412009
1012112009
1212312009
0710712010
0712712010
07/28/2010
0812512010
09109/2010
10/20/2010
10121/2010
12/29/2010
12/28/2010
01/04/2011
01/2812011
07/07/2006
10116/2006
11116/2006
02/1512007
08/20/2007
04126/2010
05/04/2010
Book Value
1,000,000.00
1,000,000.00
3,103,761.18
1,500,000.00
1,500,000.00
2,161,048,37
1,500,000.00
2,191,758.25
1,500,000.00
2,000,000.00
1,500,000.00
1,500,000,00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1,715,297.36
1,500.000.00
2,023,843.82
1,521,616,67
3,055,224.64
1,532,528.03
2,911,773.87
2,202,723,12
2,127,692.12
Par Value
1,000,000.00
1,000,000.00
3,000,000.00
1,500,000.00
1,500,000.00
2,000,000,00
1,500,000.00
2,000,000.00
1,500,000.00
2,000,000.00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000,00
1,500,000.00
1,500,000.00
1,500,000.00
1,500,000,00
2,000,000,00
1,500,000.00
3,000,000,00
1,500,000.00
3,000,000.00
2,000,000.00
2,000,000.00
Subtotal and Average 334,485,304.66 329,704,000.00
0810612008
03119/2010
04/2612010
06104/2010
2,007,844.21
1,998,607,36
2,001,394,54
2,004,609.84
2,000,000,00
2,000,000.00
2,000,000.00
2,000,000.00
Current
Market Value Rate
1,062,430,00
1,062,130.00
3,193,590.00
1,503,030.00
1,511,640,00
2,221,440.00
1,512,585.00
2,181,960.00
1,500,405.00
2,003,120.00
1,492,110.00
1,462,455,00
1,447,140.00
1,454,205.00
1,487,985,00
1,489,290.00
1,708,275.00
1,490,490.00
2,144,800.00
1,646,655.00
3,293,310,00
1,611,495.00
3.277,500.00
2,291,680.00
2,144,800,00
345,698,647.75
2,092,040,00
2,010,460.00
2,011,100.00
2,011,100.00
4,000
4.000
4.250
2.800
2.125
5,000
4.200
4.375
2.000
2.000
1.750
1.850
2.000
1,750
2280
2.250
5,375
2.500
6.790
6,000
6.000
7,140
4,375
5.500
6.790
3,375
0.875
1,000
1.000
YTM
360
3.945
3.945
2298
2.761
2.095
2.736
4.142
2.100
1.972
1.972
1.726
1.824
1,972
1.726
2.248
2.219
2.422
2.465
5.476
5.054
4.825
4.892
5.163
3.602
1.114
3.390
3.078
0.938
0.893
0.680
Page 6
YTM Maturity Days To
365 Date Maturity
4,000 04/08/2013
4.000 04/02/2013
2,330 02/2512013
2.800 0510512014
2,125 05/1412014
2.774 0310212015
4.200 12/23/2019
2.129 10/15/2015
2,000 01/27/2015
2,000 10/28/2015
1.750 08/2512015
1.850 0910912015
2.000 04/20/2016
1.750 10/21/2015
2.280 12/29/2015
2.250 1212812015
2.455 07/15/2016
2.500 01/28/2016
5.553 05123/2012
5.125 03/1512013
4.892 03/15/2013
4.960 05/2312012
5,235 06/15/2015
3.652 0711812017
1.130 05/2312012
3.437
3.120 1113012012
0.952 02/29/2012
0,905 1213112011
0.690 12131/2011
738
732
696
1,130
1,139
1,431
3,188
1,658
1,397
1,671
1,607
1,622
1,846
1,664
1,733
1,732
1,932
1,763
418
714
714
418
1,536
2,300
418
1,419
609
334
274
274
Portfolio CPA
AP
FI (PRF ]1) 7,1,1
Report VeL 7.3,1
CUSIP Investment # Issuer
Treasury Securities -Coupon
912828JW1 939 U.S. Treasury
Run Date; 04/0712011 • 15:40
Fund ALL -Portfolio Listings
Investments by Fund
March 31, 2011
Purchase
Date Book Value
0211712011 2,010,189.05
Subtotal and Average 10,022,645.00
Par Value
2,000,000.00
10,000,000.00
Total Investments and Average 366,517,780.37 361,713,830.71
Market Value
2,018,900.00
10,143,600.00
377,890,915.63
Current YTM YTM Rate 360 365
1.500 1.292 1.310
1.378 1.397
3.158 3.201
Page 7
Maturity Days To
Date Maturity
12/31/2013 1,005
499
1,309
Portfolio CPA
AP
FI (PRFJI) 71.1
Report VeL 7.3.1
1 General Investment Guidelines:
a) The max. stated final maturity of individual securities in the portfolio should be 10 years.Full Compliance
b) A max. of 30 percent of the par value of the portfolio shall be invested in securities with maturities
beyond 5 years.24.1%
c) The City shall maintain a minimum of one month's cash needs in short term investments.Full Compliance
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$50 million
- Fidelity Investments
e) Should market value of the portfolio fall below 95 percent of the book value, report this fact within a
reasonable time to the City Council and evaluate if there are risk of holding securities to maturity.103.1%
d) Commitments to purchase securities newly introduced on the market shall be made no more than three (3)
working days before pricing.Full Compliance
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).Full Compliance
2 U.S. Government Securities:Full Compliance
a) There is no limit on purchase of these securities.
b) Securities will not exceed 10 years maturity.
3 U.S. Government Agency Securities:Full Compliance
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;Full Compliance
- the interest rates at which they "step-up" are known at the time of purchase; and Full Compliance
- the entire face value of the security is redeemed at the call date.Full Compliance
- No more than 20 percent of the par value of portfolio.17.8%
b) Securities will not exceed 10 years maturity.
4 Bonds of the State of California Municipal Agencies None Held
a)Having at time of investment a minimum Double A (AA/AA2) rating as provided by a nationally
recognized rating service (e.g., Moody’s and/or Standard and Poor’s).
b)May not exceed 10 percent of the par value of the portfolio.
5 Certificates of Deposit:Full Compliance
a) May not exceed 20 percent of the par value of the portfolio;0.046%
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
a nationally recognized rating agency (e.g. Moody's, Standard & Poor's, etc.).
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.
6 Banker's Acceptance Notes:None Held
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.
$85.8 million
$20.3 million
$1.6 million
Attachment C
Investment Policy Compliance
As of March 31, 2011
Investment Policy Requirements
Compliance
Check
Attachment C
Investment Policy Compliance
As of March 31, 2011
Investment Policy Requirements
Compliance
Check
7 Commercial Paper:None Held
a) No more than 15 percent of the par value of the portfolio.
b) Having highest letter or numerical rating from a nationally recognized rating service.
c) Not to exceed 270 days maturity.
d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution,
whichever is lesser.
8 Short-Term Repurchase Agreement (REPO):None Held
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.
9 Money Market Deposit Accounts Full Compliance
a) Liquid bank accounts which seek to maintain a net asset value of $1.00.
10 Mutual Funds:None Held
a) No more than 20 percent of the par value of the portfolio.
b) No more than 10 percent of the par value with any one institution.
11 Negotiable Certificates of Deposit (NCD):None Held
a) No more than 10 percent of the par value of the portfolio.
b) No more than $5 million in any one institution.
12 Medium-Term Corporate Notes:None Held
a) No more than 10 percent of the par value of the portfolio.
b) Not to exceed 5 years maturity.
c) Securities eligible for investment shall have a minimum rating of AA from a nationally recognized
rating service.
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.
13 Prohibited Investments:
a) Reverse Repurchase Agreements
b) Derivatives as defined in Appendix B of the Investment Policy
14 All securities shall be delivered to the City's safekeeping custodian, and held in the name of the
City, with the exception of :
- Certificates of Deposit, Mutual Funds, and LAIF
Full Compliance
None Held
Full Compliance