HomeMy WebLinkAbout07 JANUARY 1999 File Copy
. AGENDA
INVESTMENT & FINANCE COMMITTEE
WEDNESDAY, January 20, 1999-- 1:30 P.M.
NORTH WING CONFERENCE ROOM
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I. CALL TO ORDER
II. ROLL CALL
III. APPROVAL OF MINUTES
Rec: Approve the Minutes of December 20, 1998 as submitted.
Action:
IV. ORAL COMMUNICATIONS
A. Any person wishing to discuss any item not otherwise on the agenda may
address the Investment &Finance Committee at this point by giving his or
her name and address for the record. Remazks shall be limited to a
maximum of five minutes unless additional time is authorized by the
Chairman.
B. This is the time and place for any person who wishes to comment on non-
hearing agenda items. It should be noted that at the Investment &Finance
Committee's discretion, these comments may be deferred until such time
on the agenda, as the item is discussed. Remarks shall be limited to a
maximum of five minutes unless additional time is authorized by the
Chairman.
V. OLD BUSINESS
A. Status of Public and Private Partnerships Backpround C6ecks for
Section 4
Rec: Report by Cazlos Ortega.
Action:
B. Bond Issuance� Palm Desert Financing Authoriri
Rec: Status Report on new Bonds for Bighom.
Action:
AGENDA-INVESTMENT & FINANCE COMMITTEE January 20, 1999
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C. 1999 Investment Policy for City of Palm Desert
Rec: Review and file report.
Action:
D. CAFR for the year ended June 30. 1998
Rec: Review report
Action:
VI. NEW BUSINESS
A. �ty and Redevelooment AgencyInvestment Schedule for December
1998
Rec: Review and submit to the next City Council agenda. Review the
presentation on the investment graphs. Review the investment
activity during the month of December. Review status of capital
projects and cash flow projections.
Action•
B. Review Short Term Investments Maturin�in Jauuarys1999
Rec: Review investments in 1) collateralized deposits; 2) treasury bonds
and notes; and, 3) Agencies discount notes.
Action:
C. State of California Local A�ency Investment Fund Monthly Reports
for November. 1998
Rec: Informational item for the Committee to review. No acrion
required.
D. Monthly Financial Report for C� Council for December 1998
Rec: Report and submit to City Council.
Action:
. AGENDA- INVESTMENT & FINANCE COMMITTEE January 20, 1999
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E. Parkview Professional Office Buildings- Financial Reports for
December. 1998
Rec: Review and file report.
Action:
F. Desert Willow Golf Resort Financial Information for December. 1998
Rec: Review and file report.
Action:
G. Palm Desert Recreation Facilities Corporation Income Analvsis for
December. 1998
Rec: Review and file report.
Action:
VII. REPORTS AND REMARKS
A. Reports and Remarks by any Committee Member
B. Items to be placed on the Next AEenda
VIII. NEXT MEETING DATE
Next regulazly scheduled meeting is:
�Ic�cdlm�c��m7�do l�c�➢v�an��r Il9, Il�9� �4 Ilo�� �ocamo
IX. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of Califomia, that the
foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City
Hall bulletin board not less than 72 hours prior to the meeting. Dated this January I5, 1998.
Veronica Abazca, Recording Secretary
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Finance Committee
CONV�N� On Decembe= 16, 1998, tke Investment F� Finance Committee was called to
order at 11:07 a.m. by Mr. Paul Gibaon.
ROLL CALL Buford Crites, Ray Diaz, Paul Gibson, 'I'homas Je{{rey, Murray Maglo{�,
Cazlos Ortega, Bob Spie�el, Bill Veazie and Veronica Abazca, recoxdin�
secretary.
G'regg Lindquist, Kempex Sports-Desert Willow
Rodney Young, I�emper Sports-Desert Willow
APPROVAL OF MINLJT'ES Upon motion by Mr. Bnb Spiegel, and seconded by Mr. Murray Magloff, the
Minutes of the November I8, 1998 meeting were APPROVED as
submitted.
ORAI. COMMLJI�TICATIONS Mr. Gibson stated tkat ke woula taize Item G under New Bueiness out
o� order eo Mr. Lindquist ana Mr. Youn� coulcl return to worlx.
�. Desert Willow C'iolf Resort Financial Information for Novexnber.
1998
Mr. Gibson invited Mr. Gre�� Lindquist, Desert Willow to explain tke
di{feience between bud�eted and actual rounds fox resident and non-resident.
Mr. Lindquiat etated that tkrou��tke sumiuer time many residents would play
� promotional rates and possibly xecorded �the wcong category.
Mr. Lindquist introduced Rodney Youn�, Desert Willow w�o ia more �ami�iar
with the "Point of Sale". Mt. Young etated t�at the {iguzes for October,
November and December were quite accurate. T'ke summez months due to tke
apecials, were inaccurate. Mr. Lindquist stated t�at wer t�e summer sta�was
attempting to trac�x the coupon rate data and tke residents rate may ka�e lost
tkeix attention. In skort, t�e pac�Zaged xounds and xesident rounds wezen't
no{ed conectly in tke compu{er, but �oz t�e mosk pait �ey are accurate.
Mr. Spiegel atated tkat Nwexnber �i�ures do not loolx very �ood. Mr.
Lindquist explained tkat t�e budgeted nnxnbers were projected at kaving both
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I�'Inancc Comm��tce
coutses open {ull-time, kowever, because of delaye beyond t�eiz control the
, completion date �or the soutk course was set bac�{rom October 15 to Octobe=
29. Mx. 5piegel as�xed Mr. Lindquist to project the turn-out for Decembex
{igures. Mr. Lindquist stated that tke traclzing was going well, and are
cuirently about 14% a�ead of revenue and 30% ahead of zounds. December ie
recovering nicely. Mr. Lindquist stated that tlxe �ast {i�e daya of Decembei,
1997, Deaert Willow did appxoxixnately 50%, of tke businese foc the entire
montk.
Mr. Spiegel ae�Zed wit�t�e two coursee open, aze we experiencing a dxop ox rise
in t�e percentage of resident total rounds? NIr. Young stated tkat at this point
it is very di{fict�t to tell. Mx. Young etated tl�at tke nuxnber of resident iounde
s�ould inexease this yeai, kowever the percenta�e of t�e total may go down.
Mr. Gibson as�Zed i�tke request by Mz. Ortega at tlie budget seseion regazding
tlie pro rating o�tl�e pro sl�op etaff between tlie golf course and t}ie pro s�op.
Mr. Lindquiet stated yes, it kas been aceruing.
Mz. Spiegel ae�ed i�Mr. Lindqu��t has established a day �or the City
employees to play tke new course. Mr. Lindquist stated tliat �e ie wor�zing on
that day.
Mr. Magloff ae�ed if Desert Willow had a method of tiaclzing various
conventions and tke amount of businesa they bring to tlie courses. Mz.
I.indquist stated t�at tkere is a group business report wbic�trac�s t�e amount
of group rounde and kow it a{fects the dollars per xound. The a�ect is very
signi{icant. Recently Desert Willow kad a "conciexge event" to introduce tke•
various concierges to tke new courae at Desert Willow.
NIr. .Spie�el atated tkat unfortunately comparing t�e budget to tke actual it ia
very disappointin�. NIx. Spie�el hopes that w�en t�e Decemlier{i�ures aze
introduced, tlxey show a turn aronnd and be�in malzin� money. 1�e objective
of building tke go�course is not to lose money, but to be�in to brealz even.
Mx. Lindquis4 stated t�at the upcoming season rounds axe very encouraging.
Receive and {ile report.
OI.D BUSINESS A. Status of Publie anc� Private Partnerskins Baclxdrouna Checlxs for
,,5eotion 4
T�ere kave been no c�anges to t�e previous mont� report.
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I'Inanec Commll�tee
B. Bond Iseuance bv Palm Desert Financin�Authoritv
Mr. Gibson stated tkat the Bighoin bond iseuance papez�aad been signed
today.
�W BU.SIN�.Ss A. City ana Rec�evelovment A.�enev Inveetment .S'ekedule
Mr.re{{rey etated that the City portfolio size boo�Z value is approxixnately�123
million. The Ciiy paid�3.4 million for tke esarow of t�e Akmanson property.
Tke hi�heat yield the Ciiy portfol�o h� had in tlie last twelve montlis ie
5.75%. In tke last t�ree montks t�ere has been an eleven baeis point decline
in tke wexa�yield due to t�e interest rate cuts.
Mr.Je{fcey stated tkat the City portfolio ie coneieten$y doing better tkan
I,AIF.
Mr.Je�{rey etated t�at the RDA port�olio size boo�value is approximately
�154 million. Botk portfolios together aze approximately�278 million. 'I'he
RDA portfolio is at 5.22%, twenty-seven basie pointe below LAI�. 'I'ke
di{ference between the City port{olio and the RDA portfolio is due to the debt
service and truet indenture requuements, wkick require t�at appzoacimately
65% o�t�e portfolio be invested in tke �idelity T=easuzy Pool (T-bille), wkich
is moving dramatically downward due to,eomparatively skort term investment
horizon.
Receive and {ile reports. _
B. Review .Skort Term Investments Maturind in Deeexnber, 1998 ,
Mr. Gibson noted tkat a num}�ex of investments were acquixed in Deeexnber,
botk fox tke reserve {und �o=tke bond issuance and tke impxovement {und
which was provided by Bigliom.
T�e sbort-term amount ie appioXimately �10 million wk��h�Il be held in
Fidelity, due to timing of need �or{undin�. �4 million kae already been
reqnestecl "diaw-down" on tliose funds. Tlie enginee= is pxesently reviewing
t�at.
Receive and {�e report.
C". state o� L'alifornia l.ocal Adenw Investment Funcl Mont�v Revort
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I'Inance Commii;tee
Mc. Gibson reported t�at for the mont� o�Octobex, t�e City has�27.9
million and t�e Redevelopment E��ency �1� �as a balance o� �11.4 million
at an intereat rate of 5.49%.
T�e RDA portion will gxow conaidexably in January when we receive tke
property tax incrememt payment.
Receive and �e reports.
D. Mont�v �inancial Renort �or C'itv C'ouncil
Mr. Gibson reported t�e actual for sales ta�c year to date is coneiderably above
last years actual,�2 million verses last yeaxs �1.142 million. TOT ie �.916
million compared to Iaet years �.584 million. An inciease in bui�ding permits
is due to ovex�250 million in valuation of bui�ding permits witk an emp�asis
on residential unite.
Mx. Gibson atated tl�at a comparison ie tough to do, due to tke fact tkat the
County of Rivereicle is very slow on its billing for police services. Tkey aze
approximately tkiee monthe behind at this point.
Mr. Diaz stated t�at neact yeaz we will be seeing an inerease in tbe amount �or
police services due to an increase in salaries �or tke S�eri{{'s Departinent
employees. NLr. C�iibson stated tkat per Mx. Ken WeIlec, we will experience a
10% - 18% inerease in po�ice service fees, due to increases. The Sheri{�
Deputies have not until now been zeceiving increases and Rivereicle is losing
deputies because of tkat. Tke inciease will bring Riverside to an equivalent .
level.
Mr. Spiegel noted tl�at tl�e ta�c increment was reflected in the month o�
December even t�ou�k it ia not received until January and suggested that we
ehange that. Mr. Gibson a�reed.
Receive and {ile report.
�. Parizview Professional O{�ice Builc�in�s - Financial Renorts
Mr. Gibson stated tkat revenues have inctea'sed. In Home Health C'aze, Inc.,
who moved last year and continues to pay their lease, liae contacted Mr.
Gibson and requeated a deal to negotiate an amount to be paid in lieu of
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I�'Inance Commi�tee
completin� t�eiL contraet. Mr. Gibaon has o{�ered present value of money
now plus interest, anyt�ing leas would require �."ounci� approval.
State Rehab is continuing the process o� getting the 5tate �ire Marsball and
ot�er parties approval prior to comin� aboard. Drawinge will be su�mitted in
Jannary/February, 1999.
Receive and{i�e xeport.
G. Palm Desert Reereation �acilities Corporation Income Analveis �or
Deeember. 1998
T'l�is item was cave=ed by Mt. Lindquist, Desert Willow.
Receive and {i�e report.
H. MoCallum Tkeatre
Ms. Giapkos had promised that tke Financial Report foi tke 1997/1998 fox
the MeCallum T'�eatre would be submitted to tke Committee once ceceived.
M=. Gil�son stated that he is unpreasecl with tke positive direction tlie
MeCallum is liead�g. The endowments wkicli were bonowed aze being re-
bui�t witkout tke abi�ity to botrow again.
Mc. Spiegel commended M=. Gibson foz t�e placement o� controls at t�e •
MeCallum. ML. Gibson aitributed t�e succese o{tkeir placing majoz controls
to Agnes F�oi.
I. Investment Poliev
A re�iaed dra{t of the ennent Investment Policy �ae been submitted by
Tkomas Je{{xey, Investment Managen Mx. Spie�el aslzed wky we were
reviewing the Investment Policy and wky tkere were so many c�an�es. Mr.
Gibson stated t�at by State law the Investment Committee is required to
ieview tlie Investment Policy on an annual basis. Mr. Jelfcey would answei tke
questions pertainin� to�e changes.
Mx. Je�Ixey stated that tke Investment Policy althougb good and certi{ied by
Municipal Finaneial Investors, ke was loo�Zing at creating a beitex policy.
Upon review of t�e policy NIr. Je{�rey �ound t�at tkere were areas in t�e policy
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I'Inance Commil;tee
tliat neecled to be updatecl. Mr.Je{{rey reviewed eaek imprwement to the
pol��y.
Mi. Je{{rey stated t�at tke employees deferred compensation program does not
need to be disclosed in tke Investmenf Policy because t�ere is a thixd parly
adm'inistxatoi, kowevei ICMA does not �ave that provision. Mr. Gibson stated �
tkat �e doea not �ave any contxol ove=tke aelection o�tke investments made
by employees, and suggeated that a document stating tke rislz of tke various
. investment be�urnieked to eack employee involved so that the City has
perFormed thei= due diligence in ma�zing the employee aware of them. Mr.
Gibeon kas as�Zed Mr. Erwin to review botk de�erred compensation plans.
PEBSCO has alxeady establisked a custody account ancl completely o�tke
CAFR boo�Zs. ICMA kowevex hold tke City as trustee. We kope to go to
' Couneil in January with review to chan�e that plan. Mr. Gibeon wants it cleaz
in t�e Investment Policy that ke personally;as T=easurez, is not responeible {ox
the investments made by eack employee.
Mr. Spie�el ae�xed if tke policy needed to be approved in January. Mc. Gibaon
stated tkat yes, it does need to be reviewed by+.he Investment Committee and
tken the City Council and apprwed pzior to the close of January. M=. Diaz
requested a strilze-out/inaert copy. Mr. Spiegel requested a meetin� be
sc�eduled so he could review it witk Paul and Tkomas. Mx. Spiegel stated tkat
thie item ahould be contuxned to tke �irst part of tke January meeting.
Mx. Gibson stated t�at�e would lilze t�e committee to review tke reviaed
policy and retum to the January meeting witk questions and comments.
J. 1997/1998 C�lifornia Annual Financial Revort
Item J continued to January meetin�. f�pxesentation will be given by Mr. L.uis
Espinoza, Finance Operations Mana¢ei.
REPORTS AND COMM S Mr. Spie�el stated that a new committee member had been appointed by
Counei� to the Investment and Finance Committee by the name of Russell
Campbell. MR. Spiegel suggested that a meeting be sekeduled with Mr.
Campbell to fami�iarize him witk the procesa.
N�XT ME�TING DATE The next Investment F9 Finance Committee meeting will be �eld Wednesday,
January 20, 1999 at 11:00 a.m.
ADJpUgT7MEN'i' Upon motion by Murray Magloff and secanded by Carlos Ortega the
Investment &Finance Committee adjourned at 12:05 p.m.
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� � Minu�es
I�'Inance Commi�tee
Respec}{�y subxnitked�
�
Veronica L. Abarca
Recording Seeretary
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O1/11/1999 --- CITY OF PALM DESERT --- PM - 1
PORTFOLIO MASTHR SllMMARY CITY
OECEM9%R 31, 1998 ACCRI7AL
AVERAGE ---YIELD TO MP.TIIRITY---
PERCENT OF AVHRAGE DAYS TO 360 365
INVESTMEMI'S BOOK VALUE PORTFOLIO TERM MATURITY EQUIVALENT EQUIVALENT
VNITED STAT6S TRSASURY - COUPON..... .........$ 51,803,483.64 36.12 94"/ 689 5.240 5.313
F&D6RAL AGENCY - CtlVPON......................5 19,885,634.60 13.8'/ 1,003 558 5.89'/ 5.979
IACAL AG6NCY INVESTMENT POD1D.................$ 2'l,912,053.25 19.96 1 1 5.253 5.326
CITY LOAN TO RDA..... ........................$ 24,408,338.94 1�.02 2,192 912 5.41'1 5.492
FID6LITY 1REASURY POOL.......................$ 7,498,698.78 5.23 1 1 4.655 4.720
UNITSD STATES TREASURY - OISCOONT............$ 4,84'/,122.36 3.38 1,'/06 1,320 5.'/3B 5.818
HIGFRAARK SWEEP ACCOUNTS......................5 6,602,901.48 4.60 1 1 4.004 9.060
STATE & IAC4L CAV1' SERIES - TIME........... ..$ 465,000.00 0.32 1,'/53 1,367 0.000 0.000
""'""""'""""__"""'
TOTAL INVESTMENTS and AVERAGES.............5 143,423,233.05 100.00t 918 531 5.2764 5.349$
CASH
Pdeebook/CheCking - No Yield Totals..........$ 564,053.45 0.000 0.000
(not included in yield calculatione)
Acciued Intezeet at Puzchaee.................$ S1B,555.]4
TOTAL CASH and PURCHASE INT6RES1'.............$ 1,082,608.69
�.......a.:�e�a�a........�_���'�'.....m`�`_`zs�`a�e��������...�_`aa�����..�.=a
TOTAL CASH and INV651MENTS.. ...............5 144,505,841.'/4
MONTH ENDING FISrnr.
TOTAL EARNINGS OECF.N�ER 31 YEAR TO DATE
Curtent Year $ 607,610.68 $ 3,652,1'/5.6'/
AVERAGE OAILY HAI.ANCE $ 134,800,194.35 $ 128,345,466.96
EPFECTIVE RATE OF RSTURN 5.31& 5.648
THE CITY'S INV&STMENT PORTFOLIO IS IN COMPLIANCE WITH ALL CALIFORNIA GOVERNMENT
PAUL S. GIBSON CODE AND CITY INVESIMENT POLICY PROVISIONS R6LATING TO TH6 INVESTMENT OF LOCAL
FINANCE DIRECTOR h CITY TREASURER AG6NCY FUNDS. NOTWITHSTANDING ANY FUTIIRE AC1'IONS ITY THE CZTY COUNCIL OR AN
UNFORESBEN CATASTROPHE, TE� CITY HAS SUFFICIENT CASH FLOW TO MEET ITS
EXPENDITVAE REQUIREMENTS FOR THE NEXT SIX MONTHS. MARXET VALUES WERE OBTAINBD
DATE FROM U.S. HANK AND FROM INTERACTIV6 DATA CORP. ALL BAI.ANCES ARS BANK BALANCES.
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O1/ll/1999 --- CITY OF PALM DES6RT -- PM - 2
INVESTMENT PORTFOLIO OETAILS - INVESTMENTS CITY
DECEMBER 31, 1998 ACCRUAL
INVESTMENT AVERAGE PURCHASE STATEO --- YTM --- MATURITY DAYS
NtIMBER ISSUER BAI.ANCE N+1B BO01C VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
UNITED STATES TREASURY - COUPON
1600'/ I UNIT6D STATES 1REASURY 12/12/95 1,008,833.29 1,000,000.00 1,01'],18'].50 fi.375 5.338 5.413 O1/15/00 3'/9
16008 I UNITED STATES 1REASURY 12/12/95 451,533.8'/ 945,000.00 454,039.06 8.000 5.279 5.352 OB/15/99 226
1609'J UNITEn STATES TR6ASUAY o5/ol/9'J 2,000,'/14.16 2,o00,0aa.00 2,011,250.00 6.375 6.171 6.257 04/30/99 119
1609B VNITED STATES TAEASUAY 03/21/9'1 1,999,221.85 2,000,000.00 2,000,625.00 S.U00 6.124 6.209 02/15/99 95
16050 UNITED STATES 1REASURY 12/11/97 92,066.47 92,000.00 92,718.75 5.875 5.674 5.753 OB/31/99 242
16051 UNITED STATES 1REASURY 12/11/9'/ 1,35'1,229.62 1,390,000.00 1,408,256.25 6.250 S.'/61 5.891 OB/31/02 1,338
16052 UNITED STATES TREASURY 12/11/97 12,176.6'1 12,000.00 12,326.25 7.125 5.672 5.750 02/29/00 429
16053 UNITED STAT6S TREASllRY 12/11/9'/ 9'l,66'/.48 9'/,000.00 99,455.31 6.250 5.'/l3 5.'/92 08/31/00 608
16059 UNITEO STATES TREASU[2Y 12/11/97 12,961.81 13,000.00 13,269.06 5.625 5.693 5.772 02/28/O1 789
16055 UNITED STATES TREASURY 12/11/9'I 104,624.69 103,000.00 10�,66�.19 6.500 5."!50 5.830 OB/31/O1 9'l3
16056 UNITED STATES 1REASlIRY 12/11/97 13�146.12 13,000.00 13�SB5.00 6.250 5.�61 5.841 02/28/02 1,154
16059 UNITED STATES TREASURY 12/11/97 11,996.08 12,000.00 12,015.00 5.500 5.629 5."!07 02/28/99 58
36060 UNITED STATES TREASVRY 12/11/9] 306,5'/6.52 300,000.00 31'l,062.50 6.625 5.'I68 5.848 03/31/02 1,185
16061 UNITED STATES 1REASURY 12/11/9'/ 15,208,812.85 15,199,000.00 15,'19'],011.88 5.8"/5 5."!62 5.842 09/30/02 1,368
16062 UNITED STATES TREASURY 12/11/9'/ 922,820.9'/ 911,000.00 950,571.56 6.3'/S 5."!59 5.838 09/30/O1 1,003
16063 UNZTED STATES TRETSVRY 12/11/9] 285,315.80 282,000.00 292,310.63 6.3'!5 5.748 5.828 03/31/O1 820
16064 UNITED STAT65 TREASURY 12/11/9'1 851,28'1.'l3 84],000.00 86'1,910.31 6.125 5.'124 S.B03 09/30/00 630
16065 UNITED STATES 1REASORY 12/11/9'/ 268,33'/.86 265,000.00 2'l1,8'/3.44 6.8'/5 5.696 5.'I'/5 03/31/00 455
16066 UNITED STATES 1REASORY 12/11/9'1 806,843.63 BO'/,000.00 813�304.69 5.'/50 5.693 5.']]2 09/30/99 2]2
1606'] [1NITED STATES TR6ASURY 12/11/9'/ 250,300.08 250,000.00 250,93'/.50 6.250 5.646 5.'!29 03/31/99 89
160'/0 VNITED STATES 1REASURY OS/18/98 4,032,391.'J'1 4,000,000.00 4,056,250.00 6.8'15 5.506 5.502 OB/31/99 292
160'/2 UNITED STATES TREASURY 12/16/9B 9'/0,�01.'/0 990,000.00 969,962.50 'l.'150 4.595 4.608 O1/31/00 395
160'l3 UNITE� STATES TREASURY 12/16/9B 5,499,125.44 5,900,000.00 5,450,625.00 6.3'/S 4.56'] 4.630 0'I/15/99 195
160'/4 llNITE� STATES TREASVRY 12/16/98 9,130,"l91.94 8,042,000.00 9,723,038.75 '1.'I50 4.545 4.608 O1/31/00 395
160'15 UNITED STATES TAEASVAY 12/16/98 2,090,451.94 2,010,000.00 2,035,125.00 5.250 9.915 4.4'/6 O1/31/O1 ]61
16076 UNITED STATES TREASURY 12/16/98 1,'/40,982.63 1,715,000.00 1,736,437.50 5.250 9.415 4.976 O1/31/O1 761
160'!'/ UNITED STATES TREASURY 12/16/98 2,3']8,826.1'/ 2,360,000.00 2,3�8,43].50 5.625 4.562 4.625 10/31/99 303
""_""""""___"____ ______""'_'___ _______"_""___ ______________ ______ ______ ______
SUBTOTALS and AVERAGES 41,305,']82.2'/ 51,803,483.64 52,554,048.13
51�250r000.00 5.240 5.313 689
F6DERAL AGENCY - COUPON
19016 FEDERAI. FARM CR£DIT BANK OB/04/9'! 3,000,000.00 3,000,000.00 3,045,93'l.50 6.000 6.000 6.083 OB/04/00 581
14011 FEDERAL HOME IAAN BANK 03/26/9'] 1,800,000.00 1,800,000.00 1,805,062.50 6.310 6.310 6.398 03/26/99 84
14020 FEDERAL HOME IAAN BANK O1/14/98 3,000,000.00 3,000,000.00 3,000,937.50 5.802 5.802 5.803 O1/14/00 3'/8
14022 FEDERAL HOME IAAN BANK O1/09/98 2,000,000.00 2,000,000.00 2,008,'/50.00 6.105 6.145 6.231 O1/09/02 1,304
14002 I FEDERAL NATIONAL MTG ASSOC 12/12/95 1,013,626.15 1,000,000.00 1,017,500.00 8.450 5.8'/'/ 5.958 0'//12/99 192
14009 I FSDERAL NATIONAL MTG ASSOC 12/12/95 1,038,299.10 1,000,000.00 1,049,3'/5.00 9.050 5.620 5.699 04/10/00 465
19023 FEOERAL NATIONAL MTG ASSOC O1/14/98 2,000,000.00 2,000,000.00 2,018,125.00 6.010 5.928 6.010 O1/14/03 1,4'!4
19025 FEDERAL NATIONAL MTG ASSOC OS/18/98 2,039,028.55 2,000,000.00 2,055,000.00 '/.590 5.'/26 5.805 02/14/00 409
14026 FEDERAL NATZONAL MTG ASSOC OS/18/98 1,993,433.41 2,000,000.00 2,008,750.00 5.430 5.]50 5.830 O1/7]/00 391
1402'! FEDERAL NATIONAL MTG ASSOC OS/18/98 2,001,24'].39 2,000,000.00 2,013,125.00 5.790 5."!10 5.'1B9 11/OS/99 30B
SUBTOTALS and AVERAGES 19,888,989.36 19,BB5,639.60 20,022,562.50
19,800,000.00 5.897 5.979 550
O1/11/1999 --- CITY OF PAIH DESERT --- PM - 3
INVSSTMENT PORTPOLIO DETAILS - INVESTMENTS CITY
DECEhIDER 31, 1998 ACQ2UAL
INVESTMENT AVER4GH PURCHASE STATED --- YTM --- MATURITY DAYS
NUf�IDER IS3VER BAI.ANCE DATS H00% VALVE FACE VALVE MARICST VALVE RATE 360 365 DATE TO MAT
IACAL AG6NCY INVE51MEI4T FUND
12000 STATE OF CALIFORNIA 2'/,912,053.25 2'I,912,053.25 2'I,912,053.25 5.326 5.253 5.326 1
AV6RAGS5 27,912,053.25
CITY LJAN TO RDA
12006 CITY OF PALM DfiSERT 07/O1/95 24,408,338.94 29,408,338.94 24,408,338.94 5.492 5.417 5.492 07/O1/O1 912
AVBRAGES 29,408,338.99
FIDSLITY 1REASUAY POOL
12009 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.920 4.655 A.720 1
12005 PIDELITY INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 4.'120 1
12006 R FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 9.655 4.'/20 1
1200"! FIDELITY INVESTMENTS 0.00 0.�0 0.00 9.720 4.655 4.]20 1
12009 I FIDELITY INVESTMENTS 37,549.30 37,549.30 37,549.30 4.'120 4.655 9.']20 1
12010 R FIDELITY INVE5IMENTS 194,894.55 199,849.55 194,844.55 4.'/20 4.655 4."!20 1
12012 I FIDELI77 ILNBS'�'r151�T1'S 2']0�046.96 2'/0,046.46 2'/0,046.46 9.'/20 4.655 4.'/20 1
12013 R FIDELITY INVESTMENTS 133,939.49 133,929.49 133,929.49 4."/20 4.655 4.]20 1
12015 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.'!20 1
12016 I FIDELITY INV65TMENTS 0.00 0.00 0.00 4.'I20 4.655 4.�20 1
12022 R FIDELITY INV6STMENTS 0.00 0.00 0.00 9.'/20 4.655 4.]20 1
12024 FIOELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.']20 1
12025 R FIDELITY INVESTMENTS 9'18,190.55 4'/8,190.55 4�8,190.55 4.'/20 4.655 4.'120 1
1202'/ R FIDELII7 INVeSTMENTS 64,931.86 fi4,931.86 64,931.86 9.']20 4.655 4.'/20 1
12028 R FIDELITY INVESTMENTS 163,999.26 163,9]9.26 163,999.26 4.]20 4.655 4 J20 1
12031 FIDELITY INVESTMENTS 12.05 12.05 12.05 4.720 4.655 4.720 1
12033 FIDELITY INVESIMENTS 43.29 43.29 43.29 4.720 4.655 4.]20 1
12034 FID6LITY INVESTMENR'S 107.85 107.85 107.85 4.720 4.655 4.720 1
12035 FIDELITY INVESTMENTS 48'1.63 48].63 48'/.63 4.720 4.655 4.'120 1
12036 FIDELITY INVESTMENTS 131.30 131.30 131.30 9.720 4.655 4.720 1
1203'l FIDELITY INVESTMENTS 86.09 86.09 86.09 4.'/20 4.655 4.'/20 1
12039 FIDELITY INVESTMENTS 24.23 29.23 24.23 4.730 4.655 9.720 1
12042 I FIDELITY INVESTMENTS 0.00 0.00 0.00 9.'/20 4.655 4.'130 1
12043 FIDELITY INVESTM6NT5 0.00 0.00 0.00 4.'/20 9.655 4.'/20 1
12044 FIDELITY INVESTMENTS 0.00 0.00 0.00 4."!20 4.655 4.'/20 1
12045 FIDELII'Y INVESTMENTS 0.00 0.00 0.00 9.]20 4.655 4.920 1
12046 FIDELITY INVESTMENTS 80.66 80.66 80.66 4.'/20 4.655 4.]20 1
12099 FIDELITY INVESTMGNTS 6],819.58 69,819.58 69,019.58 4.]20 4.655 4.920 1
12050 FIDELII'1 INVESTMENTS '/95.53 745.53 '/45.53 9.720 4.655 9.'/20 1
12051 FIDELITY INVESTMENTS 195.49 195.49 195.49 9.720 4.655 4.]20 1
12052 FIDELITY INVE5IM�NTS 1.'16 1.�6 1.'!6 4.'!20 4.655 4.'/20 1
12053 FIDELII'1 INVESTMENTS 59,958.93 59r95B.43 59,958.43 9.'/20 4.655 9.'120 1
12054 FIDELITY INVESTMENTS 0.17 0.19 0.19 4.720 4.655 4.]20 1
12055 FIDELITY INVESTMENTS 0.34 0.34 0.34 4."!20 4.655 4.'/20 1
1205� FI�ELITY INVESTMENTS 9,152,698.06 4,152,698.06 4,152,698.06 9.720 4.655 4.720 1
O1/11/1999 -- CITY OF PALM DESERT --- � ' 4
INVESITIENT PORTFOLIO DETAILS - INVESTM6NT5 CITY
DEC6MBER 31, 1998 ACCRUAL
INV�51Mg47T AV6RAGE PllRCHASE STATED --- YTM --- MATURITY DAYS
NUDffiER ISSUER BAI.ADiC6 DATE BOOK VALVE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
FI�ELI1'Y 1R6ASURY POOL
12058 FIDELITY INVESTMENTS 62,063.6� 62,063.6'l 62,063.6'! 4.'/20 4.655 4.'/20 1
12059 FIDELITY INVESTMENTS 1,29"1.'/S 1,29'/.'15 1,29'/.'!5 4.]20 4.655 9.'/20 1
12060 FIDELII'Y INVESTMENTS 1,246,998.36 1,246,990.36 1,246,998.36 4.720 4.655 4.'/20 1
12061 FIDELITY INVESTMENTS 400,96'/.21 400,96'l.21 40U,96'/.21 4.'120 4.655 4.'/20 1
12062 FIDELITY INVESTMENTS 126,685.05 126,685.05 126,685.05 4.'/20 4.655 4.']20 1
12063 FIDELZTY ZNVESTM6NTS 0.00 0.00 0.00 9.720 4.655 4.'/20 1
12064 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'/20 1
12065 FIDELITY INVESTT7ENTS 0.00 0.00 0.00 4.�20 4.655 4.720 1
12066 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.720 1
12067 FIDELITY INVESTMENTS 28.02 28.02 28.02 4.'/20 4.655 4.'/20 1
12060 FIOELITY INVESTMENTS 0.00 0.00 O.VO 4.720 4.655 4.720 1
12069 FIDELITY INVESTMENTS 192.45 192.45 192.95 4.v20 4.655 4.920 1
120'!0 FIDELITY INVES1M61JTS 0.00 0.00 0.00 4.720 4.655 4.720 1
120'/l FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 4.'/20 1
120'/2 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 A.655 4.'I20 1
120'!4 FIDELITY INVESTM6NT5 0.00 0.00 0.00 4.'/20 4.655 4.'!20 1
12075 FIDELITY INVE51T1ENT5 0.00 0.00 0.00 4.720 4.655 4.'/20 1
1207fi FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 9.655 4.720 1
12077 FIDELITY SNVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.'/20 1
120'/B FIOELITY INVESTMENTS 0.00 0.00 0.00 4.'!20 9.655 4.'!20 1
12079 FIDELII'Y INV851MENTS 0.00 0.00 0.00 4 J20 4.655 4.920 1
12080 FIDELITY INVESTM6NTS 0.00 0.00 0.00 4.]20 4.655 4.�20 1
12081 FIDELITY INVESTMENTS 0.00 0.00 0.00 9.'/20 9.655 4.']20 1
12082 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4-'120 1
12083 FIDELSTY SNVESTMENTS 0.00 0.00 0.00 4.920 4.655 4 J20 1
12084 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 9.'!20 1
12085 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.']20 4.655 4.'/20 1
12086 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 9.720 1
1208] FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'/20 1
12088 FIDELII'Y INVESTMENTS 0.00 0.00 0.00 9.720 9.655 4.720 1
12089 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.720 1
12090 FIDELITY INVESTMENTS 34,404.93 39,404.93 34,404.93 4.720 9.655 4.720 1
12091 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.]20 4.655 9.'120 1
12092 FIDELITY INVESTMENTS 116.12 116.12 116.12 4.�20 4.655 4.�2a 1
12093 FIDELITY INVESTMENTS 81.29 81.29 81.29 4.')20 4.655 4.'!20 1
12099 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 9.'120 1
12095 FIOELITY INVESTMENTS 0.00 0.00 0.00 9.'/20 4.655 4.'/20 1
12096 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.']20 1
12099 FIDELITY INV65TMENTS 0.00 0.00 0.0� 4.'120 4.655 4.'/20 1
12100 R FI�ELITY SNVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 9.'120 1
12102 FIDELII'Y INVESTMENTS 0.00 0.00 0.00 4.'I20 4.655 4.'I20 1
_________________ _""______'___ ___________"__ __"_______"__' _""___ __"___ ______
6VBTOTALS and AVERAGES '],238,5']2.11 '/,998,698.'/B '1,498,698.'!e
'/,498,698.'/8 4.655 9.]20 1
O1/11/1999 --- CITY OF pALM DESERT -- pM - 5
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS CITY
DECEPIDER 31, 1998 ACCRVAL
INVESTMENT AV6RAGE PUACHASE STATED --- YTM --- MATIIRITY DAYS
NUDIDER ISSUER HALANCE DATE BOOIC VALUfi FAC6 VALUE MARKET VALU6 RATE 360 365 DATE TO MAT
UNIT6D STATES TREAS�IRY - DISCOUNL
1'10'10 UNITEb STATES TREASURY 12/11/97 128,676.56 166,000.00 142,085.63 5.0'le 5.'158 5.838 05/15/02 1,230
170']1 UNITED STATES TREASUAY 12/11/97 4,'/18,995.80 6,1'l0,00�.00 5,215,5'/8.13 5.028 S.'/37 5.81'/ OB/15/02 1,322
_'_____'_'_____" ______""__" '_""'_"_'"_" "______"_"'_"_ '_"'__ _"_" "_"'_
SUBTOTALS and AVER4GES 4,84'1,122.36 4,89'/,122.36 5,35'],663.'16
6,336,000.00 5.738 5.818 1,320
HIGFAtARK SWEEP ACCOUNTS
24015 CITY MAIN SWE6P (Ue) 5,668,]88.0'/ 5,668,'l88.0'/ 5,668,'/88.0'/ 4.060 4.004 4.060 1
29019 DESERT WILIAW SWEEP (U9) 57,008.84 57,008.84 57�008.84 4.060 4.009 4.060 1
24016 OFFICE COMPLEX SWEEP (UB) 877,104.57 9'/'1,104.5'/ 8'!'/,104.5] 4.060 4.009 4.060 1
__"_____'__'____ '_'___""____ ___"'____"_' _"_'__"_'_'" __'_" _'____ ______
SUBTOTALS and Av6RAGES 5,519,836.83 6,602,901.48 6,602,901.48
6,602,901.90 9.004 4.060 1
STAT6 fi IACAL GOVT SERIES - TIME
23000 llNITED STATES TREASURY 12/11/9'1 430,000.00 430,000.00 430,000.00 0.000 0.000 0.000 10/01/02 1,369
23001 UNITED STATES TREASVRY 12/11/9') 35,000.00 35,000.00 35,000.00 0.000 0.000 0.000 09/02/02 1,340
__"""_____'_'___ "_'"__"__"__' '___"____'__' _"__'"__'_____ _"_'__ ___'__ ______
SUBTOTALS and AVERAGES 465,000.00 465,000.00 465,000.00
465,000.00 0.000 0.000 1,36'/
TOTAL INVESTM6NT5 and AVG. S 1a3,923,233.05 14t,821,266.8a
131,585,690.11 194,272,992.45 5.276& 5.3998 531
O1/11/1999 -- CITY OF PALM DBSERT --- PM - 6
INVESTMENT PORTFOLIO �ETAILS - CASH �ITY
DECEMBER 31, 1998 ACCRVAL
INVESTMSNT AVERAGE PURC'�1ASE STATED --- YTM --- MATf1RITY ➢AYS
NOMBER ISSUER HAI.ANCE DATE HOOK VALUE FACE VALllE MNtRET VALUE RATE 360 365 DATE TO MAT
PASSBOOR/CHECxING
1301"! OFFICE COMPLEX CHECKING (UB) 50,647.65 0.000 0.000 0.000
13016 CITY MAIN CHECKING (UB) 278,169.12 0.000 0.000 0.000
13013 DESERT WILIAW CHECI(ING (VB) 180,042.11 0.000 0.000 0.000
13015 LIHRARY FOUNDATION CFiKC� (UB) 18,044.39 0.000 0.000 0.000
13010 OFFICE COMPLEX TRUST (UB) 25,3�9.91 0.000 0.000 0.000
13020 RECREATIONAL FAC CHECKING (UB) 11,9]0.'1'1 0.000 0.000 0.000
SVBTOTALS and AVERAGES 3,222,504 24 564,053.95
0.000 0.000
Accrued Intereat a[ Purchase 518,555.24
TOTAL CASH $ 1,082,fi08.69
TOTAL CASH and INVE5IMENTS 5 134,808,194.35 144,505,841.']4
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(%)U131A
' CITY OF PALM DESERT ^ INVESTMENT ACTIVITY REPORT ^ DECEMBER 7998
EXECUTIVE SUMMARY
As of 12/31198, total portfolio book value was approximately$143.4MM. This reflected a net increase of approximately
$20.3MM from prior month, due to the investment of Bighorn bond proceeds. There was an unrealized portfolio net loss
(market value-book value)of approximately$394M, based upon prevailing market interest rates. This was only a"paper"
loss since there was no profit-taking. Significant changes in investment position, by security type, are discussed below:
"Llnited States Treas�ry - o �pon." The City buys interest-bearing U.S. Treasury notes with maturities of 2- 10 years to
invest proceeds from sale of assessment bonds. Although unrated, considered"AAP,."
TH/S ACCOUNT BALANCE INCREASED BY APPROXIMATELY$21.7MM DUE TO B/GHORN SECURITIES PURCHASES.
"Federal ggncy-Couoon" The City buys U.S. government agency and instrumentality notes with maturities of 2 - 10
years to invest proceeds from sale of assessment bonds. Agency debt guaranteed by U.S.Treasury; instrumentality debt
is not(guarantee, instead, believed to be U.S. GovernmenYs "moral obligation"). Although unrated, considered "AAA."
THIS ACCOUNT BALANCE DECREASED BYAPPROX/MATELY$3MM DUE TO A MATURED SECURITY.
"� o al ency Invastment F�nd (LAIFI•" The City temporarily invests proceeds of matured securities in $13MMM
pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio(BAs, CP, Treasuries,
agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180 - 540 days. No loss of principal in 20
years of operation. Deposits can be"cashed"within 24 hours. Limit of$30MM per account. S&P credit quality rating of
"(A+�positive"; Moody's of"Aa3."
THIS ACCOUNT BALANCE DID NOT CHANGE.
"Ci4v Loan !o RDA." The City has made long-term cash advances at LAIF interest rate to RDA for property purchases.
Advances will be repaid in future years from tax increment revenue generated by associated redevelopment projects.
THIS ACCOUNT BALANCE DID NOT CHANGE.
"Fideli�y Treasury Pool." The City invests proceeds from sale of assessment bonds(co�struction, cost of issuance, and
bond reserve monies) in"Fidelity Institutional Money Market Fund: Treasury Portfolio-Class I" This $3.9MMM fund
invests in U.S. Treasury bills and notes, and repurchase agreements for those securities. Weighted average matu�ity is 60
days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa."
THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$515M DUE TO PROCEEDS FROM ASSESSMENT
DISTRICTS
"United States Treas�ry-Disco�nt." The City buys noninterest-bearing zero coupon securities ("STRIPS")with maturities
of 6 months -30 years to invest proceeds from sale of assessment bonds. Purchased at discount;face value paid at
maturity(difference is yield). Although unrated, considered"AAA."
THIS ACCOUNT BALANCE DID NOT CHANGE.
"HiahMark Sweep Accounts." The City sweeps excess checking balances into"HighMark 100% U.S.Treasury Money
Market Fund." This $905MM fund invests only in U.S. Treasury bills, notes, and STRIPS (no repos or reverse repos).
Weighted average maturity is 90 days or less (per SEC regs). Although unrated, underlying securities considered"AAA."
THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$1.1 MM DUE TO MATURING SECURITIES.
^c►ato R Local Govt Series -Time." The City buys special noninterest-bearing U.S. Treasury certificates of
indebtedness with maturities of 15 days- 1 year to invest proceeds from sale of assessment bonds (to comply with IRS yield
and arbitrage rebate restrictions). Nonmarketable. Although unrated, considered "AAA."
THIS ACCOUNT BALANCE DID NOT CHANGE.
O1/11/1999 --- REDEVEI/JPMENT AGENCY --- � � 1
PORTFOLIO MASTSR BUDAtARY �A
DECEPIDER 31, 1998 CASH
AVBRAGE ---YIELD TO MATORITY---
PERCENT OF AVERAGE DAYS TO 360 365
INVESTMENTS HOOR VAI.11E PORTFOLIO TERM MATURITY EQOIVALENT EQUIVALENT
STAT& 6 IACAL GOVT SERIES - COUPON...........$ 66,429,662.00 93.02 1,'/28 1,202 5.]60 5.840
FIDELII'Y T'RFT+SVRY POOL.................. .....$ 53,391,2']4.10 34.58 1 I 4.655 4.'/20
IpCAL AGENCY INVESTTfENT FUD1�-��..���.��������5 11,455,212.92 '1.42 1 1 5.253 5.326
UNIT&D STATES TREASURY - COUPON. .............5 8,'/59,018.'!6 5.6'/ 965 566 5.620 5.698
STATE 6 LOCAL GOVT SERIES - TIM6.............$ 5,]30,629.00 3.'/1 998 4'/2 0.000 0.000
UNI1'ED STATES TREASVRY - DISCOUNT............$ 5,920,113.89 3.83 2.339 1,995 5.454 5.529
HIGHMARR SWEEP ACCOUNlS......................$ 1,'1l'l,563.14 1.11 1 1 4.004 4.060
FEDERAI. AGENCY - COUPON......................$ 999,819.88 0.64 619 391 5.'/69 5.049
_____________""_______"_______________'_______"""____'"_'_____""'___'""'_"""__
TOTAL INVESTMENTS and AVERAG85.............$ 154,398,293.69 500.00� 929 646 5.08'/} 5.158k
CASH
PaeabookfChecking - No Yield Totale..........5 5'1,836.'19 U.000 0.000
(not included in yield calculatione)
Accrued Intereat at Purchaee.................$ 16,'I42.50
_______"_____""_____""_____'_______"______"'_______"_______"_______"_______"
TOTAL CASH and Pt1RCNASE INT6R65T.............$ 'l4,5'/9.29
�esa�_�esa�s
TOTAL CASH and INVBSTMENI'5.................$ 159,4'/2,8]2.98
MONTH 6NDING FISCAL
TOTAL EARNINGS D6CEMBER 31 YEAR '1'O DATE
Clirrent Year $ 683,156.32 $ 4,261,18'].55
AVERAGE DAILY BAI.ANCE $ 159,352,544.22 $ 159,'/46,525.'/9
EFFECTIVE RATE OF RET(JRN 5.21$ 5.29$
TH& ROA'S INVESTMBNT PORTFOLIO IS IN COMPLIANCs WITH ALL CALIFORNIA GOVERNM6NP
PAUL S. GIBSON C1�DE AND R�A INVESTMENT POLICY PROVISIONS RSLATING TO THE INV6SIMENT OF LOCAL
FINANCE DIRECTOR & CITY TREASURfiR AGSNCY FUNDS. NOTWITHSTANDING ANY F[TlURE ACTIONS ITY TF� RDF.'6 GOVERNING BOARD
OR AN VNFORES6EN CATASTROPHE, THE RDA HAS SUFFICIEN'P CASH FIAW TO MEET ITS
EXPENDITURE RE(jOIREMENTS FOR THE NEXT SIX MONTHS. MARICGT VALUSS WERE OBTAINED
DATE FROM U.S. 9ANK AHD FROM INTERACTIVE DATA CORP. ALL HAI.ANCES AAE HAN]( HALANCES.
Ol/11/1999 --- REDEVEIAPMENT AGENCY --- pp� - 2
INVESTMENT PORTFOLIO DETAILS - INVESTM6NT5 RDA
DECEDIDER 31, 1998 CASH
INVESTM6NT AVERAGE PURCHASE STATED --- YTM --- MATURITY DAYS
NOMBER ISSVER BALANCE DATE BOOK VALUE FAC& VALVE MARICET VALVE RATE 360 365 DATE TO MAT
___"_______"'"_______""'___'__"_"__"'_'_'___"_____'___'_'_____'____'_"_"___"'_'__'___"__'____"__'____"____'_____________"
STATE & IQCA7. GOVT SERIES - COIIPON
19500 UNITED STATES TREASUAY 07/24/97 5,686,827.00 5,686,82'l.00 5,686,82'l.00 3.165 3.122 3.165 04/O1/02 1,186
19501 UNITED STATES TREASVRY 07/29/9'/ 60,'/42,835.00 60,'/92,835.00 60,'l42,835.00 6.090 6.00'/ 6.090 04/18/02 1,203
""__""____'_"' __""""___'_ '________"'__ ___"___'_____ "___'_ __'___ ______
SUBTOTALS and AV6RAGES 66,429,662.00 66,429,fi62.00 66,429,662.00
66,429,662.00 5.760 5.840 1,202
FID6LITY 1REASURY POOL
11002 I FIDELITY INVESTMENTS 25,854,9]1.54 25,854,971.59 25,854,9'/1.59 4.'/20 4.655 4.'J20 1
13003 R PIDELI'1'Y I�ESTMENTS 2,01"l,339.49 2�010�339.99 2�019�379�<9 4�'120 4.655 4.720 1
11005 I FIDELITY INVESTMENTS 9,301,196.24 4,301,196.24 4,301,196.24 4.'/20 4.655 4."120 1
13006 R FIDELITY INVESTMENTS 256,539.00 256,539.00 256,539.00 9.720 4.655 4.'/20 1
11008 R FIDELITY INVESTMENTS 1,'l21,530.38 1,']21,530.38 1,']21,530.38 4.720 4.655 4.'/20 1
11009 I FIDELITY INVESTMENTS 1,8']4,882.13 1,8'l4,882.13 1,8'/4,882.13 4.]20 4.655 4.'/20 1
11010 I FIDELITY INVESTMENTS 4,960,664.92 4,960,664.42 4,960,fi69.42 4.'120 4.655 4.'/20 1
11011 R FIDELITY INVESTMENTS 2,"/'/2,714.13 2,7']2,714.13 2,772,714.13 4.]20 4.655 4.'/20 1
11012 E FIDELITY INVESTMENTS 0.00 0.00 0.00 4.']20 9.655 4.'/20 1
11018 FIDELITY INVESI'MENTS 150.54 150.59 150.54 4.720 4.655 4.'/20 3
11019 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 9.655 9.'!20 1
13020 FIDELII7 INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 4.720 1
110]1 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 9.']20 1
11022 FIDELITY INVESTMENTS 777.05 777.05 777.05 9.720 4.655 4.'!20 1
11023 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.720 1
11025 FZDELII'1 INVESIMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'120 1
11026 FIDELITY INV65TMEN1'S 0.00 0.00 0.00 4.720 4.655 4.720 1
11028 FIDELITY INVESTMENTS 119.29 119.29 119.29 4.']20 4.655 4.'/20 1
110Y9 FID6LITY INV65TMENTS 191.34 191.34 191.34 4.720 9.655 8.720 1
11030 R FIDELITY INVESIMENTS 695,195.12 695,195.12 695,195.12 4.720 4.655 4.]20 1
11031 FID6LITY INVES1M�11'S 8.92 8.92 8.92 9 J20 4.655 4.920 1
11032 FIDELITY INVGSIMENTS 0.00 0.00 0.00 9.720 4.655 4.'/20 1
3103] FIDELII'Y INVESIMENTS 0.1'/ 0.1'1 0.1'1 4.'/20 4.655 9.'!20 1
13038 FIDELITY INVESTMENTS 31.26 31.26 31.26 4.'/20 4.655 4.'l20 1
11039 R FIDELITY INVESTMENTS 590,993.59 540,493.59 540,993.59 4.720 9.655 4.'/20 1
11090 FIDELITY INVESTMENTS 452.63 952.63 452.63 4."/20 4.655 4.'/20 1
11041 I FIDELITY INVESTMENTS 82,]09.53 82,'/04.53 82,'/04.53 4.'/20 4.655 4.'/20 1
11042 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.']20 1
11044 FIDELII'1 INVESTMENTS 36,439.51 36,439.51 36,439.51 4.'120 4.655 4.�20 1
11049 FIDELII'1 INVESTMENTS ']0.13 90.13 90.13 4.920 4.655 4.']20 1
11050 FIDELITY INVESTMENTS 2,832.53 2,832.53 2,832.53 4."!20 4.655 4.'/20 1
11051 FID6LI1'1 INVESTMENTS 0.00 0.00 0.00 4.720 9.655 4.720 1
11052 FIDELITY INVESTMENTS 1'/,529.'/3 1'/,529.'!3 1'/,529.']3 9.'/20 4.655 4.'/20 1
11055 FIDELITY INVESTMENTS 23�837.17 23,837.17 23,837.1'/ 4.720 4.655 4.720 1
3105fi FIDELITY INVESTMENTS 6.59 6.59 6.59 4.'/20 4.655 9.720 1
11057 FIDELITY INVESTMENTS 19,916.21 19,416.21 19,41fi.21 4.720 4.655 4.720 1
O1/11/1999 --- REDEVEIlJPMENT AGENCY --- � - 3
INVESTMGNT PORTFOLIO DETAILS - INVESTMENTS �A
OECEPIDEA 31, 1998 CASH
INVE91T7ENT AVERAGfi PURCHASE STATED --- YTM "-- MATURITY DAYS
MIMBSR TSSUER BALANCE OATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE '1C) MAT
FIDELITY TREASURY N�OL
11058 FIDELITY INVESTMENI'S 25,125.19 25,125.19 25,125.19 4.'/20 4.655 4.'/20 1
11061 FIDELITY INVESTMENTS 30,602.10 30,602.10 30,602.10 4.'/20 4.655 4.'/20 1
11062 FIOELITY INVESTMENTS 4,461,413.68 4,461,913.68 4,461,413.68 4.'/20 4.655 4.'/20 1
11063 FID6LITY INV6STMENIS 1,880,'106.11 1,880,']06.11 1,880,']06.11 4.'/20 4.655 4.'/20 1
13064 FIDELII'Y INVESTMENTS 304.45 104.45 104.45 4.720 4.655 4.720 1
11066 FIDELITY INVESTM6NTS 1,'/90,660.59 1,'/90,660.59 1,790,660.59 4.'/20 9.655 4.'!20 1
11068 FIDELITY INVESTMENTS 1,049.36 1,099.36 1,049.36 4.720 4.655 4.720 1
11069 FIDELITY INVESTMENTS 0.09 0.04 0.04 4.'/20 4.655 4.']20 1
110'/0 FIDELITY INVESTMENTS 0.00 0.00 0.00 9.720 4.655 4.720 1
110']1 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'!20 1
11074 FZD6LITY INVESTMENI'S 0.00 0.00 0.00 4.720 4.65$ 4.]20 1
11075 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.]20 4.655 4.720 1
110'/6 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.720 1
11079 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.020 4.655 4 J20 1
11078 FIOELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.]20 1
110'/9 FIDELITY INVESTMENTS 1.00 1.00 1.00 4.'/20 4.655 4.'!20 1
11080 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'!20 4.655 4.]20 1
11081 FIDELITY INV65TM&NTS 0.00 0.00 0.00 4.'/20 4.655 4.'!20 1
11082 FIDBLITY INVESTMENTS 19.48 19.4B 19.48 4.'!20 4.655 4.'I20 1
11083 FIDELITY INV6STMENI'S 56.62 56.62 56.62 4.'/20 4.655 4.']20 1
11084 FIDELII'Y INVESTMENTS 1.00 1.00 1.00 9.�20 4.655 9.�20 1
11085 FIDELITY INVESTDIENTS 0.00 0.00 0.00 4.'/20 9.655 4.720 1
11006 FID&LITY INVESTMENTS 1.00 1.00 1.00 4.']20 4.655 9.'/20 1
11092 FIDELITY INVESTM6NT5 13.12 13.12 13.12 4.720 4.655 4.720 1
11093 FIDELITY INVESTMEN'PS 0.00 0.00 0.00 4.720 4.655 4.']20 1
11094 FIDELII'Y INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.720 1
11096 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'/20 1
11097 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.720 1
11099 FIDELITY INV5STM&NTS 0.00 0.00 0.00 4.']20 4.655 4.'/20 1
11100 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4 J20 1
11101 FIDELITY INVESTMENTS 2.05 2.05 2.05 4.']20 4.655 4.'120 1
11102 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.'/20 1
11103 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.]20 4.655 4.'120 1
11104 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.720 1
11305 FIDELITY INVESTMENTS 20,391.90 20,391.90 20,391.90 4.]20 9.655 4.]20 1
71106 FIDELITY INVESTMENTS 0.00 0.00 0.00 4 J20 4.655 4.720 1
1110] FIOELITY INVESTMENTS 129.9'/ 129.9'/ 129.9'I 4.'120 4.655 4.'/20 1
11108 FIDELITY INVESTMEN'i'S 1.00 1.00 1.00 4.'120 4.655 4.'/20 1
11109 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.720 4.655 4.�20 1
11130 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'120 4.655 4.920 1
11111 FIDELII'Y INVESTMENI'S 0.00 0.00 0.00 4.720 4.655 4.720 1
11112 FIDELITY INVESTMEN'1'S 0.00 0.00 0.00 4.'/20 4.655 4.'120 1
11113 FIDELITY INVESTMENTS 221.86 221.86 221.86 4.720 4.655 4.720 1
O1/11/1999 --- RSDfiVEIQPMENT AGENCY --- PM - 9
INV65'�1ENf PORTFOLIO DETAILS - INVESTMENTS RDA
D6CEPIDER 31, 1998 CASR
INVESTMENT AVERAGE PURCHASE STATED --- YTM --' MATURITY OAYS
NUDID&R ISSU£R HALANCE �ATE B00% VALU6 FACE VALUE MARKET VALUE RATE 360 365 OATE TO MAT
FIDELITY TREASURY POOL
11119 FIDfiLZTY INV65TMENTS 6'l9.99 6�9.99 679.94 4.'/20 4.655 4.'!20 1
11129 FIDELITY INVESTMENTS 0.00 0.00 0.00 4.'/20 4.655 4.']20 1
SUBTOTALS and AV£RAGES 53,391,2']4.10 53,391,2'/4.10 53,391,2'/4.10
53,391,274.10 4.655 4.720 1
]ACAL AGENCY INVESTMENT YUND
21000 STATE OF CALZFORNIA 11,955,212.92 11,455,212.92 11,455,212.92 5.326 5.253 5.326 1
AVERAG65 ll,455,212.92
UNITEO STATES TREASURY - COUPON
1'/013 R UNITED STATES TREASURY 07/O1/95 110,20'l.50 104,000.00 106�827.50 '/.'/50 6.098 6.182 11/30/99 333
1]083 VNITED &'t'1+'1'6S TREASUF2Y 03/21/9'/ 1,95'/,031.25 2,000,000.00 2,000,625.00 5.000 6.124 6.209 02/15/99 45
1'!OB'/ VNZTED STAT2S TREASURY O1/22/98 151,235.94 151,000.�0 151,188.'/S 5.500 5.2'13 5.34'/ 02/28/99 58
1]O88 UNITED STATES 1REASVRY O1/22/98 156,235.16 155,000.00 156,270.94 5.8'/S 5.2'/4 5.347 OB/31/99 242
1'/089 UNITED STATES TFiEASURY O1/22/98 165,600.00 160,000.00 164,350.00 '1.125 5.]66 5.339 02/29/00 424
1'/090 VNITED STATES TREASURY 01/22/9B 169,553.94 166,000.00 1'l0,201.88 6.250 5.282 5.355 08/31/00 608
1'l091 UNITED STATES TREASURY O1/22/98 1]1,298.44 1'/0,000.00 1'/3,453.13 5.625 5.289 5.363 02/28/O1 '/99
17092 UNITED STATES 1REASURY O1/22/98 182�242.50 1'/6,000.00 183,9]5.00 6.500 5.329 5.903 OB/31/O1 9'13
17093 UNITED STATES TREASUftY O1/22/98 186,3"l3.44 181,000.00 189,145.00 6.250 5.35') 5.931 02/28/02 1,154
17095 UNITED STATES TREASURY O1/22/98 436,602.8'/ 922,'/00.00 444,231.28 6.250 5.35'/ 5.432 OB/31/02 1,338
17096 UNZTED STATES TREASORY O1/22/98 418,527.28 405,200.00 925,839.88 6.250 5.357 5.432 08/31/02 1,338
1'l097 VNITEO STATES 1REASURY O1/22/98 9,399.30 9,300.00 9,563.53 6.250 5.35'] 5.932 OB/31/02 1,338
17098 UNITED STATES TREASURY 03/10/98 1,384,886.25 1,368,000.00 1,401,772.50 6.125 5.523 5.599 09/30/00 638
1'1099 UNITED STAT65 TAEASVRY 03/10/98 1,582,1'/0.08 1,54'l,000.00 1,614,19'7.81 6.3'/S 5.582 5.659 09/30/O1 1,003
1'/101 VNITED STATE6 TREASURY 03/10/98 1,677,705.31 1,fi73,000.00 1,686,070.31 5.750 5.980 5.556 09/30/99 2'72
SUBTOTALS and AVERAGES 8,'/59,018.76 0,759,018.7fi 8,877,652.51
8,688,000.00 5.620 5.698 566
STATE & IACAL GOVT SERIES - TIME
19009 UNITED STAT65 TREASVRY 0'1/24/9"/ 12,65].00 12,65'/.00 12,65�.00 0.000 0.000 0.000 03/25/99 83
19010 UNITED STATES TREASVRY 0'!/24/9'/ 1,501,41].00 1,581,41'/.00 1,581,41'/.00 0.000 0.000 0.000 04/O1/99 90
19011 VNITEO STATES TRE}1SURY 0'//24/97 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/16/99 258
19012 VNITED STATES TREASlR2Y 0'//24/9'/ 1'/7,191.00 1'7'1,191.00 177,191.00 0.000 0.000 0.000 10/O1/99 2'/3
19013 VNITED STATES TREASVRY 0']/24/97 12,657.00 12,657.00 12,65'/.UO 0.000 0.000 0.000 03/09/00 433
19019 UNITED STATES TREASURY 0'//24/97 1,622,191.00 1,622,191.00 1,622,191.00 0.000 0.000 0.000 04/O1/00 456
19015 UNITED STATES TREASURY 0'I/24/9'J 361,813.00 361,813.00 361,813.00 0.000 0.000 0.000 04/12/00 46]
19016 UNITED STA1B5 TREASURY 0'//24/9'I 158,2'15.00 158,2'15.00 158,2'/5.00 0.000 0.000 0.000 10/OS/00 643
1901'! UNITED STATES 1REASURY 0'!/24/9'/ 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 03/29/O1 818
19018 UNITED STATES TREASURY 0'//24/97 1,669,977.00 1,669,977.00 1,664,977.0� 0.000 0.000 0.000 04/O1/O1 B21
19019 [1NITEO STATES TREASURY 0'!/24/9"/ 12,656.00 12,656.00 12,656.00 0.000 0.000 0.000 09/20/O1 993
19020 UNITED STATES 1REASVRY 07/29/97 88,827.00 88,827.00 88,827.00 0.000 0.000 0.000 10/O1/O1 1,004
-, _
O1/11/1999 --- REDEVEI/JPM6NT AGENCY --- PM - 5
INVESTMENI' PbRTFOLIO DETAILS - INVESTMENTS �A
DECEMBER 31, 1998 CASH
xNV8S7q,IENT AVEAAGE PURCISASE STATED --- YTF1 --- MATURITY DAYS
Iil1MBER ISSUER BALANCE DATE B001C VALUE FACE VALUE MARICET VALUE RATE 360 365 DATE TO MAT
STAT& & LOCAL GOVT SERIES - TIME
19021 VNITED STATES TREASVAY 0'!/24/9"/ 12,656.00 12,656.00 12,656.00 0.000 0.0a0 0.000 03/14/02 1,168
_'__"'___"__""__ __"__"____"_ __"_____"____" ___'_"__'_"" ____"_ ____'_ __"_'_
SUBTOTALS and AVERAGES 5,'/30,629.00 5,'/30,629.00 5,'/30,629.00
5,'/30,629.00 0.000 0.000 4'/2
VNITED STATES TREASURY - DISCOONT
18023 UNITED STATES TREASVRY O1/22/9B 150,794.82 198,000.00 163,473-75 4.704 5.379 5.449 �2/15/03 1,506
18025 VNITED STATES 1REASURY O1/22/98 130,16'/.96 181,000.00 142,650.63 4.628 5.434 5.509 02/15/04 1,8'/l
10027 UNITED STATES TRSASURs oi/22/98 4,989,6'11.22 7,143,000.00 5,515,735.31 4.590 5.464 5.540 OB/15/04 2,053
18028 ONIT&D STATES TREASVRY O1/22/98 394,2'/9.4'! 532,400.00 430,245.']5 4.662 5.395 5.4'/0 OB/15/03 1,60'!
18029 UNITED STATES TREASURY O1/2]/9B 255,200.42 344,600.00 278,479.88 4.662 5.395 5.4'/0 OB/15/03 1,68'/
SUB'NTALS and AVERAGES 5,920,113.89 5,920,113.89
6r530,585.32
� 8,399,000.00 5.454 5.529 1,995
HIGHIMRK SWEEP ACCOUNTS
26016 HOOSING AUTH CHIC SWEEP (UB) 1,524,891.52 1,524,891.52 1,524,891.52 4.060 4.004 4.060 1
2601'/ HOUSING AUTH TRT SWEEP (VB) 192,6'/1.62 192,6'/1.62 192,fi'/1.62 9.060 4.004 4.060 1
Sl10TOTALS and AVERAGES 1,630,959.51 1,']1'/,563 14 1,'!1'],563.14
1,"!1],563.19 4.004 4.060 1
FfiD6RAI. AGENCY - COUPON
15022 FED6RAL NATZONAL MTG ASSOC OS/18/98 994,819.BB 1,000,000.00 1,004,375.00 5.430 5.769 5.849 O1/27/00 391
AVERAGES 994,819.88
TOTAL INVESTMEN'PS and AVG. $ 154,398,293.69 155,136,953.99
154,311,690.06 156,811,341.16 5.08"/6 5.158& 646
O1/11/1999 -- R6DSV6LOPMENT AGENCY -- � ' 6
INVESTMENT PORTPOLIO DSTAILS - CASH �A
DSCEDIDER 31, 1998 CASH
INVESTMENT A��.'E PURCHASE STATED -" YTM '-' MA'NRITY DAYS
NUI�ID6R ISSVER BALANCE DATE B00% VALVE FAC6 VALUE MARI(ET VALUE RATE 360 365 DATE TO MAT
pp$SBOOK/CHfiCRING
25014 SELF-EfELP CHECKZNG (HA) 5'/,8'/8.52 0.000 0.000 0.000
25015 HOVSING AUT13 C7�C%ING (UB) -48.76 0.000' 0.000 0.000
25016 HOUSING AVTE1 1RVST (UB) '/.03 D.000 0.000 0.000
_"_______"____ ____"______'_ ___'"" ______
SUBTOTALS and AVERAG5& 40,854.16 5'l,836.'/9 0.000 0.000
Accrued Intereat at Purchaee 16,]42.50
TOTAL CASH $ 99,599.29
TOTAL CASH and INVESTM&NTS $ 154,352,549.22 154,472,872.98
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(%)0'131A
REDEVELOPMENT AGENCY ^ 1NVESTMENT ACTIVITY REPORT DECEMBER 1998
EXECUTIVE SUMMARY
As of 12/31/98, total portfolio book value was approximately$154.4MM (with SLGS). This reflected a net increase of
approximately$276M from prior month, due to bond improvement proceeds. There was an unrealized portfolio net loss
(market value- book value)of approximately $78M, based upon prevailing market interest rates. This was only a"paper"
loss since there was no profit-taking. Significant changes in investment position, by security type, are discussed below:
"State&Local Govt Series -Go�non." Palm Desert Financing Authority buys special interest-bearing U.S. Treasury
notes with maturities of 2- 10 years to invest proceeds of advance refundings held in escrow(to comply with IRS yield and
arbitrage rebate restrictions). Nonmarketable. Priced 5bp below U.S.Treasury borrowing cost for Treasury securities of
comparable maturity. Although unrated, considered "AAA."
THIS ACCOUNT BALANCE DID NOT CHANGE.
"Fideli Treasury Pool." RDA invests tax-exempt bond proceeds(construction, cost of issuance, and reserve monies) in
Fidelity Institutional Money Market Fund: Treasury Portfolio- Class I:' U.S. Bank, as trustee, pays bond expenses and
debt service from this fund.This $3.9MMM fund invests in U.S. Treasury bills and notes, and repurchase agreements for
those securities. Weighted average maturity is 60 days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa"
THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY$195M DUE TO BOND IMPROVEMENT PROCEEDS.
"�-oc-I Aqe�y Investment F�nd (LAIFI." RDA invests City's loan in $13MMM pool managed by State Treasurer's
Office for 2,600 governmental entities. LAIF has diversified portfolio (BAs, CP, Treasuries, agencies, corporates, repos,
reverse repos, CDs)with weighted average maturity of 180 -540 days. No loss of principal in 20 years of operation. Deposits
can be"cashed"within 24 hours. Limit of$30MM per account. S&P ctedit rating of"(A+)positive"; Moody's of"Aa3:'
THIS ACCOUNT BALANCE DID NOT CHANGE.
"���ited Stata�Treasury-Couoon." RDA buys interest-bearing U.S.Treasury notes with maturities of 2 - 10 years to
invest tax-exempt bond proceeds. Although unrated, considered"AAA."
THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$7M DUE TO AMORTIZATION OF PREMIUMS.
^s�afa & Lnrai [�ovt Series -Time." Palm Desert Financing Authority buys special noninterest-bearing U.S.
Treasury certificates of indebtedness with maturities of 15 days- 1 year to invest proceeds of advance refundings held in
escrow(to comply with IRS yield and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered "AAA."
THIS ACCOUNT BALANCE DID NOT CHANGE.
"���ftad States Treas�ry-Discount" RDA buys noninterest-bearing zero coupon securities ("STRIPS")with maturities of
6 months -30 years to invest tax-exempt bond proceeds (construction monies). Purchased at discount; face value paid at
maturity (difference is yield). Although unrated, considered "AAA."
THIS ACCOUNT BALANCE DID NOT CHANGE.
"yjyhMark Sweep Acco�nta." RDA sweeps excess checking balances into"HighMark 100% U.S.Treasury Money
Market Fund." This $905MM fund invests only in U.S. Treasury bills and notes (no repos or reverse repos). Weighted
average maturity is 90 days or less (per SEC regs). Although unrated, underlying securities considered "AAA."
THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$89M DUE TO MATURING SECURITIES.
"Federal Agenc�Coupon:' RDA buys U.S. government agency and instrumentality notes with maturities of 2- 10 years
to invest advance refundings and tax-exempt construction funds. Agency debt guaranteed by U.S.Treasury; instrumentality
debt is not(guarantee, instead, believed to be U.S. GovernmenYs"moral obligation"). Although unrated,considered "AAA."
THIS ACCOUNT BALANCE DECREASED BY APPROX/MATELY$2M DUE TO AMORTIZATION OF PREMIUMS.
' STATE OF CALIFORNIA ^ ^ MATT FONG, Tieasurer
, OFFICE OF THE TREASURER
SACRAMENTO . .
Local Agency Investment Fund �
PO Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
November , 1998 Statement
CPfY OF PALM DESERT �conat Nnmber : 98-33-621
Attn: CITY TREASURER
73510 FRID WARING DRNE
PALM DESERT CA 92260
Transaekions
Effective 'IYansaction 7Yan Confirm Authorized
Date Date Type Number Caller • Amount
11-06-1998 11-05-1998 RD 22095 THOMAS jEFF'REY 5,000,000.00
11-12-1998 11-12-1998 RW 14444 THOMAS JEFF'REY - 4,000,000.00
11-19-1898 11-1&1998 RD 14124 THOMAS JEFfREY 4,000,000.00
Accoun4 Summary
Total Deposit : 9,000,000.00 Beginning Balance : 22,912,053.25
Total Withdrawal : - 4,000,000.00 Ending Balance : 27,912,053.25
- - �
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Page : 1 of 1
M � ^
, POG..�D MONEY INVESTMENT ACCI,�NT
� SUMMARY OF INVESTMENT DATA
A COMPARISON OF NOVEMBER 1998 WITH NOVEMBER 19�7
(Dollars in Thoussnds)
�. <"',. �,.,fi , ,.: �„* ,.. ,+�: � v� €
.. "- �., ^�s . .,.,<
" k .�,�y�� � _ �
�' 1@' ��` L �.v'/„' '1�� i
Average Daily Portfolio $31,560,864 $27,325,013 +$4,235,851
Acccued Eamings $142,463 $128,344 +$14,119
Effective Yield 5.492 5.715 _,223
Average Life--Month End(in days) 188 210 -22
Total Securiry Transactions
Amount $11,467,765 $15,217,885 -$3,750,120
N�� 258 346 -88
Total Time Deposit Transactions
Amount $937,200 $518,200 +$419,000
Number 45 Zg +17
Avecage Workday Investment Activity $689,165 $925,652 -$236,487
Prescnbed Demand Account Balances
ForServices $271,033 $145,818 +$125,215
For Uncollecud Funds $163,439 $151,586 +$11,853
LOCAL AGENCY INVESTMENT FUND*
SUMMARY OF ACTIViTY
NOVEMBER 1998
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END BALANCE
$13,573,794,028.72 $1,570,756,000.00 $1,236,397,42436 $13,908,152,604.36
'Local Agency Investment Fund Invested Through Pooled Money Investment Account
State of California
Pooled Money Investment Account
Market Valuation
11/30/98
United Stffies Treasu :
Bills $ 3,107,812,048.35 � 3,193,231,370.00 NA
Notes S 4,796,838,823.44 $ 4,835,912,200.00 $ 83,108,929.95
Federal A en :
Bonds $ 2,249,041,848.89 $ 2,247,453,608.80 $ 32,982,738.62
Floffiers $ 170,000,000.00 S 169,894,300.00 y 443,874.00
MBS S 99,437,557.12 $ 100,752,409.20 $ 584,707.33
GNMA S 2,045,844.87 S 2,301,704.57 S 20,218.33
SBA a 264,B06,690.77 $ 265,805,843.01 S 2,832,326.55
FHLMC PC 3 19,826,253.30 $ 21,153,734.43 $ 318,208.98
D'iscount Notes $ 2,699,240,483.28 $ 2,731,156,324.15 NA
Bankers Acce ances $ 85,410,488.10 $ 65,707,422.58 NA
Co orate:
Bonds $ 829,586,009.92 $ 830,020,641.44 S 12,740,110.18
Floaters $ 1,024,477,402.89 a 1,019,579,492.00 $ 6,605,451.55
CDs $ 5,220,857,189.66 $ 5,220,352,828.20 ; 83,643,808.35
Bank Notes 3 1,830,980,489.48 $ 1,830,997,126.35 $ 28,291,628.39
Re urchase A reements NA NA NA
Time De sits 3 1,877,390,000.00 $ 1,877,390,000.00 NA
AB 55 &GF Loans $ 2,814,249,880.91 $ 2,814,249,860.91 NA
Commercaal Pa er S 5,505,529,903.31 $ 5,547,234,886.75 NA
Reverse Re urchase $ 648,014,000.00 $ 648,014,000.00 $ 3,349,928.33
TOTAL $ 31,929,094,254.19 $ 32,125,179,832.39 $ 228,022,067.90
Fair Value InGuding Accrued Interest $ 32,353,201,900.28
Repurchase Agreements, Time Deposits,AB 55 &General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
STATE OF CALIFORNIA _ -�. MATT FONG Treasurer
OFFfCE OF THE TREASURER
�SACRAMENTO _
Local Agency Investment Fund �
PO Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
November , 1998 Statement
Hccouat Nnmber : 65-33-015
PALM DESERT RIDEVELOPMENT AGENCY
Attn: PAUL GffiSON, TREASURER
T3-510 FRED W�iRIlVG DRNE
PALM DESERT CA 92260
Account Summary
Total Deposit : 0.00 Beginning Balance : 11,455,212.92
Total Withdrawal : 0.00 Ending Balance : 11,455,212.92
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Page : 1 of 1
,
State of California
Pooled IV�oney investment Account
Market Valuation
11/30/98
United States Treasu :
Bilis $ 3,107,612,048.35 $ 3,193,231,370.00 NA
Notes $ 4,796,836,623.44 $ 4,835,912,200.00 S 63,108,929.95
Federal A en :
Bonds $ 2,249,041,648.99 $ 2,247,453,608.80 $ 32,982,738.62
Floaters S 170,000,000.00 $ 189,894,300.00 $ 443,874.00
MBS $ 88,437,557.12 $ 10D,752,409.20 $ 584,707.33
GNMA $ 2,045,644.87 $ 2,301,704.57 $ 20,218.33
SBA 3 264,806,890.77 $ 285,805,943.01 $ 2,632,326.55
FHLMC PC $ 19,826,253.30 $ 21,153,734.43 S 318,206.98
Discourrt Notes $ 2,699,240,463.28 $ 2,731,156,324.15 NA
Bankers Acce nces $ 65,410,488.10 $ 65,707,422.58 NA
Co orate:
Bonds $ 829,566,009.92 $ 830,020,641.44 $ 12,740,110.18
Floaters $ 1,024,477,402.69 $ 1,019,579,492.00 $ 6,605,451.55
CDs $ 5,220,857,189.86 $ 5,220,352,828.20 a 83,843,808.35
Bank Notes $ 1,830,980,489.48 $ 1,830,997,126.35 a 28,291,628.38
Re urchase A reements Nq Nq Nq
Time De its 5 1,877,390,000.00 $ 1,877,390,000.00 NA
AB 55&GF Loans $ 2,814,249,860.81 $ 2,814,248,860.91 NA
Commercial Pa er $ 5,505,529,903.31 $ 5,547,234,566.75 NA
Reverse Re urchase $ 648,014,000.00 $ 848,014,000.00 $ 3,349,928.33
TOTAL $ 31,929,094,254.19 $ 32,125,179,832.39 $ 228,022,067.90
Fair Value Including Accrued Interest $ 32,353,201,800.29
Repurchase Agreements, Time Deposits,AB 55 8�General Fund loans, and
Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
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PALM DESERT REDEVELOPMENTAGEI
COMBINED STATEMENT OF ACTUAL
REVENUES&EXPENDITURES
COMPARED TO BUDGET
31-0ec-98
RDA RDA %of (FAV)UNFAV
Budget YTD Butlget Actual YTD Budget Variance
REVENUES
1 Tax increment 31,312,423 15,656,2�2 0.00°k 15,656212
2lnterest 1,886,400 943,200 1,132,492 120.07% (189,292)
Saies of Property 170,050 0.00°/a (170,050)
3 Reimbursement From Other Agencies 800,000 400,000 62,682 15.67% 337,318
3 Other Revenue 64,000 32,000 74,413 232.54°k (42,413)
3 Trensfers In 462,000 231,000 1.105.196 478.44% (874,196)
4 Palm Desert Housing Authoflry Revenue 3,198,191 1,599,096 16,58t 1.04% 1,582,515 �
TOTAL REVENUES 37,723,014 18,861,507 16,300,093
FAV(UNFAV)
EXPENDITURES Variance
AdministraUveCosts 1,223,797 61�,899 475,827 77.76�0 136,072
Professional Services 2,501,004 1,250,502 302,921 2422% 947.58'I
PropertyTaxAdministrativeFee 812.290 406,145 0.00% 406,145
Cost of Inventory Sold
Capital Ouday
Office Equipment 36,000 18.000 19,698 109.43% (1,698)
Deep Canyon/Hwy 111 4,099 2,050 0.00% 2,050
Parking Spaces 16,000,000 8,000,000 0.00% 8.000,000
I-101nterchangas 250,000 250,000 250,000 100.00%
Joni Drive Extension 250,000 125,000 0.00% 125,000
Desert Willow-Mountain View Course 24,774,435 12,387,218 1,044,588 8.43% 11,342,630
Desert Willow-Firecliff Course 11,666,905 5,833,453 1,274,666 21.85°k 4.558,787
Washington Sheet Improvemen4 300,000 150,000 O.00Yo 150,000
Fred Waring Improvements 435,000 217,500 0.00% 217.500
Project Area 4 Perimeter Landscape 374,000 187,000 0.00% 187,000
Street Improvements 428,255 214.128 0.00% 214,128
Storm Drain Improvements 2,200,000 1,100,000 0.00%, 1,100,000
Desert Crossing ImprovemenLs 43,450 21,725 0.00% 21.725
Hwy 11'I/741mprovements 87,500 0.00% (87,500)
0.00%
HOUSING 0.00�
New Houses-for Resale HIP#7 786,165 393,083 198.739 50.56% 194,343
Home Improvement Program 1-6 70,056 35,028 14,592 20,436
Sanfa Rosa Rehab Program 568,818 284,409 219,547 77.19% 64,862
5 Desert Rose Project 199,000 99,500 293,822 295.30% (194,322)
5 Portola Palms Project 105,326 52,663 55,855 (3,�92)
L2nd Purchases/Bldg Improvement5 340,350 170.175 0.00% 170,175
Palm Desert Housing Authority Expenditures 4,758,403 2,379,202 257,560 10.83°h 2,121,642
DeGine in Value on Inventory Held
For Resale 7,500 (7,500)
Payments to Other Govemmental Agencies 7,270,900 3,635,450 0.00% 3,635,450
8ond Issuance Costs (13,200) 13,200
Bond Diswunt
6 Interest And Fiswl Charges 12,801,112 6,400,556 6,168,895 96.38% 231,661
6 Principal Payments 1,325.000 662,500 700,000 105.66% (37,500)
Trensfers Out Induding LowlMod 14,674,296 7.337,148 1.642,446 22.39% 5,694,702
TOTALEXPENDITURES '104,198,661 52,224,331 13,000,955 39,223,375
•TAX INCREMENT REVENUE IS USED TO PAY DEBT.
1. Taz incremenUa recelvetl in Jan enG hlay
2. TNsle9 s6temenls M1ave not Oeen pasUE as M mmN enC.
3. Receive0 at vdMous tlme tlunng tlre year.
0. 9BIBBRevenueaMExpen0lWieswlllbeposletl alter9)RByea�en0ladosetl.
5. Evpanses oReet Dy Hauae Sslea
6. P 81 payrtenls are paid al vahous�mBB dinng Me yee�.
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Jan-13-99 11 :45A Dosort Wilno� WGL 760 _346 9459 P.O1
� MEMORANDUM
To: Pwl G�bxon �
Nrom: Grogg Lfndquist
I
Subjecl: End af Monlh I�e.}wd-Daemba 1998
I)eaert WiOow Cmlf Resort
Date: January 13t19991
Thc foiloa}ing is a erations for the of Daember at the Desat Willow t�olf Reson. This dacribes
details licned in tha Monthl Findaciel Resulss repon out at the Go1f(h�migW Conmr�tcc last Munday-
1. itounds of GoII
De4cn Willow finished the mo�th of December with 441 rounds of golf. This was 34%ah�ad of budQet and mott than
doabla th�rounds of golf iQ D�cembet 1997(2684). ' can be aprib ed to lwo goiC cair �s,heller produc�awareness,
aad cxccllrnt counc condiAon Nnn-r�ssident pfay 42Yo which lvas anticipaaed bxws�most af these people are
retumine�o their other rea fot ihe holidsy, ditiPntlly�D is a slow montL for group actirity becaus�
companiefi do aot plaa a� ' time of year. 'xt 3 m ll ahow an increase�l amount of group play and
aubr.�ue9t mcreases in do as per As in the. moro than 30%of i lu month's volume occumd
from De��6-31 (1 3 out of 441). 'f'tjis will ive us an i of t to expect in the :oming mwthy uf pwk
u6vity_ I
il. CmlfReven F
I
Revenues Ifrom g If fees,cart pcacticc balls erc 21%aI� o budset. The dollaz-per round avetaged in the
SSS-5(1�se for first 2 days then increased w 378-81 in e l 6 days. 7'Fu numher of non-residenc rounds
obviously made e differe e.
III. Rw cs i
Mercl�n�d se rcv nues 7% of budget for llecanher. 7me1 volume was S34,SD8�omEmcd to SZ3,958 in
lle��nba�1997. la addit' la 1he rdded=wmber of playe�s,tLe mcrcLaud'ue mi;/plan was superinr to the provioue year
m1 wc � a aeuve handve mamgcr i�ly�nusuing tnlles. Coet of saks a ere alao improved(54%vs.
s.
GS%in l 7). We will a gtwt improvema�t ia ntail fignres withthe new li�s end�leunu inventory.
IV. ' gCrntcr
Revenuas oi the llavid Ludbettec 'olf Acadeimy w 9 %of budget(57.Z,146 vs 525,000'. 'Ibia cumparcd to�uly
Sd790 in ewe in t6e pcevious . 1'heir estima �f Il�t upcommg montLs�ue also cv sutcnt wi�h�he treucl sccn in
Dce The sddilionel notmi oEbemg at D 'low aud tha largar fiacecn xe ha��c ccrtainly cnntributed to thc
incfcascd lmac. We are ueing a onsidenble in xe in foreign golfees from China,Iap��n,and Eumpe whn are not
only takro laaons fiom DL(3A b �pending additi dsys playing golf. .
V. Faod d Heve[age(PllRI�'C7
The ro�r+nt 'ty also e�c 6udgd i Da ber(529,915 vs 529,250). Compazed �u the previoua season of
T12745,du acti ity in tlfis dpp ia tre ng 1, ',71ErE(s wntem,hOweve�,that dol',tre per mund were not a.s
etrang,buf this a:duc m thc lack f g�xwp huxi 'n t}�e haliday month. We aill see tl+is figum incicasc with thc
amount ot�group lay in the ne�ct 3 Mha. I I i
In su�,the rty�cLm�s xcccdcdbudget 1f/°/a(5424,289 va.$3 4,127)md w��expeG Ihis trend lo contimte.
We moro bled tho previ yosr's mrnuc� f$215,490. � I
I I
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�' -- -�- _ _ ��� __ _--_
Jan-13-99 11 :46A D�sart Wil rny WGL 760 34 9459 P.02
Vc Payroll and ReLtcd Expeasex. I
, �
Uvccall prymll for t�e p�ope[ty,including Fnod and evaage,wnre SI77,293 com�rtcd M a bodget of SZ01,677. This
rcp�raorted a positiYe vuiance of 12°�!i under
V►i.OD��B�p�
The ope[atiog cxpnucs of tl��e me p[operty we�e 1941 under budgd. For the year we are qow dcr budget 5207,099
or�pmxRnaaty 17%. we��� itted a mid-y budgct revieion to the City due to ffi�•modificarion of�he
Clubhouse opemng dst¢from Apri September of 'e year. Mwy oC�hcac axpenses wil►he dele unnl the next fiscal
ycar,w they will bufactorad into new Fiscal Ye r Budget far 1999-2000.
In wmmary,ae have naw added a marketine ,KC.Kmacy,to the sbtl'effecti4�e J 4. Hc will bo an
excollaM addhion to Ihn twn and i ��pputively' ' ucnce�venues with t1u enthus„�sm a expertisc he briogs�u
the ptopeny. (iroup and advance iaese is Itead'm'g well for the nwtt 120 days and thc tcam u we prepaced fur Ihe peak
�cr�on. i I
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, City of Pelm Desert
' Parkview Office Complex
Income Statement
Fot December 1998
December-98 December-98 M % Y'1'D Y7'� # %
Bud et Actuel Variance Varience Bud et Actual Variance Varience
Revenues
g��� $ 58,900 $ 59,365 $ 465 100.79% $ 353,400 $ 348,6?b $ (4,774) 98.65%
Dividends/Interest $ 1,200 $ 2,791 $ ],591 232.54% $ 7,200 $ 16,316 $ 9,116 226.61%
TotalRevenuea $ 60,300 $ 62,155 $ 2,055 103.42% $ 360,600 $ 364,942 $ 4,342 1OL20%
Expenses
ProEeseional-Accounting di Auditing $ 3,700 $ 5,161 $ (1,461) 139.49°h $ 22,200 $ 30,96G $ (8,766) 139.49%
Professional-Menagemrnt Fee $ 5,500 $ 8,499 $ (2,999) 154.52% $ 33,000 $ 41,474 $ (8,474) 125.68%
Tenantlmprovements $ 5,800 $ - $ 5,800 0.00% $ �,� $ 6,610 $ 28,190 18.99°h
Repa'vs&MaintenanceBuilding $ 9,100 $ 8,749 $ 351 9614% $ 54,600 $ 30,733 $ 23,867 5629%
Repairs&Maintenance-Lendscaping $ 1,079 $ - $ 1,079 0.00% $ 6,474 $ - $ 6,474 0.00%
Utilities-FVater $ 250 $ 98 $ 152 39.16% $ 1,SIX1 $ 517 $ 983 34.47%
Utilities-Gas/Electric $ 4,300 $ 3,132 $ 1,168 72.85% $ 30,300 $ ?8,848 $ 1,952 9521%
UtiliHes-Trash $ 950 $ 1,135 $ (6&5) 252$0% $ 2,700 $ 3,351 $ (651) 124.11%
Telephone $ 150 $ 287 $ (13'n 191.44% $ 900 $ 950 $ (50) 105.56%
Insurance $ 521 $ - $ 521 0.00% $ 3,124 $ - $ 3,124 0.00%
TotalExpenses $ 30,850 $ 27,061 $ 3,789 8772% $ 189,598 $ 143,449 $ 46,149 75.66%
Inveat1999-Invnt
Parkview Office Complex
Vacancy Rate Schedule by Suite
January 1999
Suite Squaze
No. Tenant Feet
73-710 Fred Waring Drive-Two (2) Story Building
100 Hanover 2,560
102 Bergren 1,360
103 Multiple Sclerosis 488
104 Arthritis Foundation 960
106 Vacant 928
108 Senator Kelly 785
112 Assemblyman Battin 1,406
ll4 Chamber of Commerce 1,478
118 Vacant 1,250
119 City/CVAG Conference Room
(Under Construction) 1,380
120 Golf Dimensions 1,750
200 CVAG 4,292
200A Vacant �1
201 U.S.District Court 604
203 Accounting Services 480
205 Coachella Valley Economic Partnership 700
208 Ferguson&Bernheimer 960
210 Wilson,Pesota&Pichazdo 3,040
211 Alzheimer's Association 937
217 Mcmillan 775
Invest;Vacancy Report
Parkview Office Complex
: Vacancy Rate Schedule by Suite
January 1999
Suite Square
No. Tenant Feet
220 Vacant 1,607
222 WMA Securities 2,981
Total square footage(2 story Building) 31,562
Vacancy Rat�---4,626/31562=14.65%
73-720 Fred Waring Drive-One Story Building
100 State of California-Water Resources 15,233
102 Vacant(Currently Negotiating with
the State of CA Rehabilitation Dept) 4,396
Total Square Footage 19,629
Vacancy Rate--4,396/19,629=22.4%
Overall Vacancy Rate for Both Buildings:
VacancX Rate--9,022/51,191= 17.62 °h
Invest;Vacancy Report
City of Palm Desert
Desert Willow
Budget Vs Actual
For tho montL of December 1998
BudgNed Actuel BudB�� AcNal
December Decem6er S Percmfage Ywr to Year to S Percentage
Revenue 1998 1998 Variance Veriance Date Da[e Variance Variance
Course&Ground $ 251,413 S 316.508 S 65,095 I25.89% $ 1,141,317 $ 1.192,708 S 51,391 IOi.5056
�� $ 13.299 5 19.529 $ 6.230 146.85% S 54,669 S 55.789 $ 1,120 102.05%
ColfShop 5 32,300 S 34,508 S Z,Z�B 106.84% 5 139,030 S 151,635 S 12,585 109.05%
Range $ 1,365 S 887 E (478) 64.98% S 6�81b 5 4,111 S C2.715) 6023'.6
Pood&Beveage S 29.u0 $ 29.915 $ 665 10217% 3 130,512 $ 131,596 S 1,084 ]00.83%
Interertlnwme S 1,500 S 796 S p�4) 53.W% $ 7.500 S 7,834 S 334 104.45%
Total Revmues E 329 127 $ 402 143 S 73 016 122.18% S I 479 874 E 1 543 673 S 63 799 104.31%
Payroll
Perimeterl.andscaping S 9.065 $ 8,593 5 492 94.58% S 54,510 S 44.998 $ 9.512 82.55%
P��oP S 10,539 S 7.941 S 2,598 7535% S 45,435 $ 35.423 S 10,012 77.96%
Can S 18,737 S 12.940 S 5,797 69.06% S 80,367 $ 59,181 S 21,186 73.6496
Course&Ground E 1W,641 5 99,OOb S 8,635 91.98% S 472,167 S 472,866 E (699) 100.15%
Golf Opefations 5 18.229 S 23.823 S (5,594) 130.69% S 90.567 S 98.967 5 (8.400) 109.27%
Cenenl&Administation S 23.733 $ 19,050 S 4.683 802796 E I40.432 S 107.142 S 33.290 76.29%
Food&Bevenge $ 7.2,795 S 14,533 S 8,262 63J6% S 88,351 S bb.394 $ 21.957 75.1596
Total Pa �� $ 210 759 $ �85 886 3 b1 873 88.20% $ 971 829 S 884 971 E 86 858 91.06%
Other Expenditurev
PerimelerLe�dacaPing $ 4.900 $ 3,186 $ 1.714 65.02% 3 29,400 S 21,986 $ 7.414 74.78%
�n� § 1,850 S 3,556 S (1,706) 19222% $ 20.890 $ 16,325 $ 4,565 78.15%
Proehap-COGS $ 14,625 S 19,062 S (4.43'n 130.34% $ 95.446 S 88.605 S 6,641 92.83%
�rt $ 35.123 S 32.780 E 2,343 933396 S 133.878 S 1ll.104 � $ 16.774 87.47%
Cwlse&Ground-Nonh Cwrse E 47,316 S 39,863 $ 7,453 8425% E 423,866 E 358,393 $ 65,473 84.55!6
Course&Graund-SwthCourse S 45,035 $ 35,768 3 9,267 79.42% 5 174.W5 S 132.854 S 41,221 7fi32%
Couree&Ground-Desert Pallet-N $ 5,000 $ - $ 5.000 0.0096 $ 26,100 S : S 26.100 O.IXI!6
Cwrse&Ground-Desert Palle[-S $ 3,305 S - S 3.303 0.00% $ 17,250 a a 17.250 0.00%
GolfOperations S 800 S 1.223 $ (423) 152.88% $ 21.040 S 10,729 5 10.311 50.99%
Gcneral&Adminiscration $ 33,� a 63.355 S (29.Z�) 180.�% § �.450 E 269,5 6 S 3.884 71.12%
Rnnge
Food&Beverage S 6,220 $ 6,402 5 (182) 1W.93% S 29,340 S 35,661 S (6.321) 1 .
Food&Beve�a8e COGS $ I0,238 S 12.929 3 (2.69p 126.28W, S 55.917 5 62.462 5 (6.545) 1ll.70%
ManaB�m���[Fa $ 25,000 5 39,943 5 (14,943) 159.7796 5 106.250 3 114,943 E (8,693) 108.18%
Finencing/Lease 3 9.362 $ 10.468 $ (1.1W) 111.81% 5 48,323 S 47.550 $ 773 98.40%
Total Other Ex drt��a $ 1A2 632 S 268 535 5 u 9�3 110.68% S 1 459 680 S 1 279 300 E 180 380 87.64%
Ilavid Leadbetter Academy
LeamingCenrerRevenues $ I5,000 $ 22.146 5 7,146 147.6496 S 113•000 S �9�481 $ (35,519) 69.11%
Reimbursemerts w David Leadbener $ p2.750) S p8,87A) $ (6,074) 147.64% S (97,750) S (67.458) $ 30,292 69A1%
OtherHxpenditures b (1,450) $ (1.3T7) $ 73 94.97% S (6.700) $ (8.1b1) $ 439 94.95%
I,eerning Centu locome p.oss) S 800 E 1.945 S 1.145 243.13% S 8,550 S 3.762 S (4.788) 5 2.33
Netlncome ss $ 123,464 S 50333 5 73,131 40_77% S 943085 S 616836 S 3261A9 65A1%
......e,,,,.�,_...._...��,.,....,.��
� � Cit of Pa1m Desert � I
9
Dexrt Willow
'l�vo(2)Year Compuison
MonW a Month a Y�a Y��O
Dete Dete $ Pucmtase Date Date S
Reveeue Dx-96 1kc-97 Varimce Varimce 1998 1997 Verimce
CAurse&Ground S 316.508 5 Ib6.814 S 149.694 189.74% S 1.192.708 S 788.035 5 404,673 151.35%
C� S 19.529 S 2,630 S 16,899 742.55% $ 55,789 $ 12,399 S 43.390 449.95%
Go1FShop S 34,508 S 22.384 S 12.124 154.16% 5 151,635 S 127,492 S 24.143 ll8.94%
�ge S 687 5 2.288 1 (1,401) 3877% S 4.111 S 19.460 S p5.349) 21.13%
Food&Heverage S 29,915 S 12.907 S 17.1A8 235.42% $ 131,596 S 78.042 5 53,554 168.62%
Incerestlncome S 796 S 1.086 5 (290) 73.30% 5 7,834 S 7.805 S 29 100.37%
TomlReveou's S 402,143 5 207.9W S 194.234 193.42% S 1.543,673 S 1 033.233 S 510,440 149.40%
ea�u
Rrimeter l.a�duaping
a a,sn s - s e�sv3 ioo.00� a aa.r�s a - s aa,v9s ioo.00�
Pmshop(includes Golf Operations) 5 31.764 E 12.72fi S 19.038 249.60% S 134.390 S 63.951 S 70.439 210.15
�rt S 12�94p S 7.769 S 5.171 1fi6.56% S 59.181 S 39.50 S 19.931 150J8%
Cwrse&Ground S 99.� S 58.629 S 40.577 169.45% S 472.866 S 302,159 S 170,707 15fi.50%
Y t9.050 E 7J.b97 S (4.647) 80.39% Y 107.142 S 17b,431 5 (19.289) 84]4%
General&Adminisvation a �q,533 S 8,700 S 5,833 167.0596 S 6b,394 5 51.106 5 15,288 129.91%
Foad&Beverage
Totel Pe rv� S 185.886 S I l l 321 S 74 565 166.98% 884 971 582 897 5 302 074 I51.82%
Ofher ExpendiNrrs
Perimeler Landscaping S 3,186 5 S 3.186 IOO.W% 5 21.986 S qy 741 $ p7,687) 160.47%
��h� S 4,779 S 2.501 $ 2.278 191.08% S 27,054 $
ProshopCOGS $ 19.062 S � 9.535 S 9.527 199.92% S 88,� S 70.292 S 18.313 126.05%
Can S 32.780 S ll.300 5 21.680 2953296 S 117.1Of E 61.632 S 55.472 190.01%
Course&Ground S 75,631 5 21.938 S 53.693 344.75% 5 491,247 5 353,592 5 137,655 138.93%
Gercral&Adminisvarion S 63,355 5 30,599 5 32,75G 2W.05'R S 263,122 S 153.743 5 109,379 171.1496
�e S - S 182 5 (182) 0.00% S 9.566 S 3.U1 S 6.395 301.67%
Food&Beverage S 6.402 S 4.029 3 2,373 158.90% S 35.661 5 29.462 S 6.199 121.04%
Food&Beverage COGS $ 12,929 5 4.31b S 8.603 298.87% S 62,4b2 5 40.832 S 21.630 152.97%
ManagementFee 3 39,943 E 12.500 S 27.443 319.54% S 114.943 S 75,000 S 39.943 15326%
Financing/Lease S 10.468 S 2.598 S 7.870 402.93% S 47.550 E 16.172 S 31,378 294.03%
Totn101LerEx ditures S 1b8.535 5 99,708 S 169�ZZ� 170.41% S 1,279,300 5 �,637 S 430.663 150.75%
Darid Leadbetter Academy
karningCemerRevrnues $ 22.146 $ 7,172 $ 14.974 �03% S (75,7a9) S (22.335) 5 (53.384) 339.01%
�xamins Cenrer ExPeMitures S (7A.7At) S (7,651) S c�z,s5o)
Learoing Cmter Income(1-uss) S 1,945 S (479) S 2,424 -406.05% $ 3,762 $ 2.112 S 1.fi50 178.13%
Ndlncame ss S 50,333 S 199 5 47.134 I573.40% S 616,636 5 96189 S �1,b4 155.69%
Dx98992yrCompemm�
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palmDesert Recreation Facilities Corporation
Income Statemeat
Dec-98 Dec-98 � °�
Budget Actuel Variance Variance
Food & Beverage Revenues $ 29>25�•00 $ Z'1+008•00 $ (2+242•011) 92.34%
Total Revenues $ 29,250.00 $ 27,008.00 $ (2,242.00) 92.34%
Salazies $ 22,795.00 $ 14,533.00 $ 8,262.00 63.76%
Cost of Goods Sold-F&B $ 10,238.00 $ 12,929.00 $ (2,691.00) 126.28%
Food& Beverage Expense $ 6,220.00 $ 6,402.00 $ (182.00) 102.93%
Total Expenses $ 39,253.00 $ 33,864.00 $ 5,389.00 86.27%
Net Income (Loss) $ (10,003.00) $ (6,856.00)
Note: T6e above revenues and expenditures are also included in the Desert Willow aoalysis.
Lhv9899;PDRFC Budget
City of Palm 1kteH
Deserl Willow
Three Month Cash Rmerve Aoelysis
Three Month
ProjeMed Expeuditures Jauuazy February March Pro.lected Expenditures
Pa roll $ 200 269 $ 200 450 $ 200 047 $ 600 816
1
entin
Totals 1 5 1
Cash Reserve Analysis One Month Three Months
Re uired Reserve $ 511 448.00 $ 1 593 270.00
Cash on Har�d $ 421,432.62 $ 421,432.62
Variance-Favoreble Unfavorzble $ 90,015.38 $ 1 171 837.38
Reconcillation ot adJusted casL requlremeat _
Reconciled Cash on hand $ 266,040.71
Add:
preoprning&Grandopening Owed by the City $ 2Q230.31
Preopening owed by the RDA $ 3,593.18
OMober Deficit Owed by Kemper $ 72,619.86 �
Perimeter(Cash Owed By City of Palm Desert) $ 58,948.56 =
Adjusted Cash on Hand $ 421,432.62
Adjusted Reserve Requirement $ 511,448.00 � �
Adjus[ed Cash S (90>015.3�
1 Represents operating deFicit owed by Kemper Sports.
�Represerts 88%of perimeter expenditures to date.
3 Represents budge[ed expendi[ures for December 1998. Does not
Include incerest on city loan. Includes only 12% of the projected
perime[er landscaping expendi[ures.
�.sa9v;c..ti com
City of Palm Desert Internal Correspondence
�ate: 19 November 1998
sub�ect: Proposed Changes for 1999 Statement of Investment Policy
From: Thomas W. Jeffrey, Investment Manager �r
: To: Paul S. Gibson, Director of Finance & City Treasurer
I recommend that the following changes be made to the 1999 Statement of
Investment Policy for the City of Palm Desert, the Palm Desert
Redevelopment Agency, and the Palm Desert Housing Authority (hereafter
collectivety referred to as the "City").
These recommendations result from a comprehensive review of the
investment polices of the Cities of Los Ange%s, San Francisco, Sacramento,
San Diego, Riverside, Oceanside, lrvine, Vista, Redlands, and Stockton; the
Counties of Los Ange%s, San Francisco, San Diego, Sacramento, and Orange;
the water agencies of MWD, Rancho California, and the San Diego County
Water Authority (SDCWAI; and the San Diego Port District.
All recommended changes are premised on the belief that the City's
investment policy should be a simple working document that provides
guidelines for City investment officers, while meeting legal and political
requirements.
The format of the City's investment policy has been revised so that paragraph
sequence, numbering, and content more closely approximate that of the
model investment policy of the Municipal Treasurer's Association of the
United States and Canada ("MTA"), which is the basis for certification.
In some cases, other California governmental entities have been cited when
they have provisions in their investment policy that are similar to changes
being proposed to the City's investment policy. These citations usually follow
a recommendation, and are enclosed in parentheses.
Preface
• Legal drafting convention used to abridge "City/Agency" into "City." The
City Attorney has confirmed that this is acceptable.
. Palm Desert Housing Authority has been added.
Pronosed Changes for 1999 Statement of Investment Policv
19 November 1998
Page 2 of 6
• Policy goal language has been substituted that places greater emphasis on
fidaciary duty in terms of investing public funds.
• Language on compliance with fede�al law has been added.
1 .0 Scope �
• Language excluding Deferred Compensation Plan from investment policy
due to third-party administration, and investment by individual plan
participants, has been added.
2.0 Standard of Care
• "Prudent person" standard replaced with "prudent investor" standard
(state law since 1995). New language taken directly from California
Government Code Section 53600.3. Result is that accountability standard
for Investment Officers has been raised from that of "average person on
the street" to that of other professional public funds managers
• Broader MTA model policy language substituted in "substantial deviations
from expectations" paragraph to avoid conflict with subsequent portfolio
rebalancing and credit downgrading sections.
3.1 .1 Credit Risk
• Language on pre-qualifying financial institutions, dealers, and direct issuers
in order to manage credit risk, has been added.
3.2.1 Market Risk
• Prohibition against "selling short" relocated to Sectiori 8.0 "Prohibited
Investments and Practices".
3.2 Liquidity
• Language on acquiring securities with active secondary markets and low
duration, has been added.
• 50/30/20 portfolio maturity limits relocated to Section 13.0 "Maximum
Maturity".
3.3 Yield
• One-year Treasury bill benchmark relocated to Section 18.0
"Performance".
Pro�osed Changes for 1999 Statement of Investment Policv
19 November 1998
Page 3 of 6
4.0 Delegation of Authoritv
• Citations of state and municipal statutory authority for City Treasurer to
manage investments, have been added.
• Language on management succession, in terms of authorizing investment
transactions, has been added. Previously, this was reportedly an
undocumented practice at City of Palm Desert.
5.0 Conflicts of Interest
• "Ethics" removed from title since meaning unclear and no universal
standards exist. "Conflicts of interest" used, instead, to cover all subjects
under this section.
• Zero-tolerance policy language on gifts and favors to Investment Officers
has been added ("Orange County Ban"). This is aiso currently the practice
of the City of Palm Desert Finance Department.
6.0 Authorized Financial Institutions and Dealers
• Regional broker criteria from Schedule III incorporated.
• Annual January deadline for qualifying new brokers has been added.
• Annual March deadline for requalifying existing brokers has been added.
• "Current audited financial statement" changed to plural since it is assumed
that more than one financial statement would be required.
• New requirement added that all new brokers, both primary and secondary,
submit the same application documents.
. New requirement added for submission of broker-dealer (firm) registration
and status forms.
. Three-year moratoriurn on new broker-dealer reapplication if original one
denied or rejected.
• Bank rating service changed from Financial Directory to Sheshunoff Bank
Quarterly Ratings and Analysis due to the former's failure to differentiate
between California financial institutions in terms of credit risk (all California
banks and S&Ls are given the same "AAA" rating). Sheshunoff, in
contrast, ranks them comparatively on a scale of 1 — 100, and has a
comparably priced publication. (City of Redlands)
• Equity-to-assets ratio raised from 4% to 5% (based on Financial Directory
surveyl.
. New requirement of S5 billion in total assets (all of City's current financial
services providers + CalFed qualify►.
Pr000sed Changes for 1999 Statement nf Investment Pelicv
19 November 1998
Page 4 of 6
7.1 United States Treasury Biils, etc.
• Certificates of Indebtedness specified (for SLGS). .
• Maturity and concentration limits on zero coupon Treasuries added, in
. order to enhance portfolio liquidity.
7.2 Federal Agency and Instrumentalitv Notes
• "Instrumentality" added to title as a reminder of guarantee differences
between "agency" and "government-sponsored enterprise" debt. Specific
agencies and instrumentalities identified as suitable to do business with, in
order to manage credit risk. (Cities of Riverside, Irvine, San Francisco;
Counties of Orange, San Diego and San Francisco; Port of San Diego;
SDCWA) •
. Issuer concentration limits have been added to manage credit risk,
replacing prior highly subjective, ambiguous, and out-of-date "prudent
person rule". (Cities of Los Angeles; Riverside, Irvine and San Francisco;
Counties of Orange, San Diego & San Francisco; Port of San Diego;
SDCWA)
• Specific overall and annual concentration limits have been placed on
callables to ensure that the City's laddered bond portfolio does not
collapse, and that overall portfolio yield does not significantly decline due
to calls being made.
7.4 Bankers's Accgptances
• Institutional credit risk rating requirement has been added. (City and
County of Los Angeles; San Diego County Water Authority; Rancho
Califomia Water District)
7.5 Commercial Paper
• Alternative single issuer concentration limits of 5% of market value or
$500,000 have been deleted (more restrictive than state law1. 10% single
concentration limit mandated by state law left intact. (Cities of San
Francisco, Riverside, Redlands, Vista, Oceanside, and Irvine; Counties of
Los Angeles, San Francisco and Sacramento; Port of San Diego; MWD;
and SOCWA)
7.6 Non-Negotiable CDs
. "Non-Negotiable" has been added to title to clarify security type.
• Main requirements of "Schedule I -- Policy Statement on Collateralized
Time Deposits" incorporated.
' Pronosed Chanaes for 1999 Statement of Inve tment Poli v
19 November 1998
Page 5 of 6
• "590,000" maximum investment substituted for prior 5100,000 limit
(permits recovery of interest as well as principal under FDIC).
• Collateralization requirements relocated to Section 10.0 "Collateralization"
of this policy (per MT�4 model policy►. .
7.7 Mutual Funds
• Major requirements of Schedule II "Policy Criteria for Entering into a
Diversified Management Company" incorporated.
• As an alternative to "AAA" ratings, MMMF can qualify through SEC-
registered investment advisor with five years's experience managing 5500
million + MMMF (per state law).
• Fitch Investors Services has been added as a third major credit rating firm
(making it now two of three to qualify►. (San Diego County Water
Authority; County of San Diego)
• Language clarifying prohibited commissions has been added.
8.0 Prohibited Investments and Practicec (New Sectionl
• Language banning most derivatives has been added (current policy silent
on this topic►. State law specifically prohibits certain types of derivatives.
• Exemption for callables and zero coupons has been specified.
9.0 Investment Pools
• Citation of LAIF authorizing statute relocated to Section 7.8 "LAIF".
10.0 Collateralization (New Sectionl
• Main requirements of "Schedule I — Time Deposits" incorporated.
11.0 Safekeeping and Custodv
• Exceptions to DVP policy (LAIF, mutual funds, Federal Reserve) noted.
• Management authorization chain-of-command added for money transfers
involving broker-dealers.
13.0 Maximum Maturitv (New Sectionl
• 50/30/20 limit relocated here.
14.0 Bond Proceeds
• Language referring to 1986 Tax Reform Act added. (City of Irvine)
• Language on bond arbitrage and rebates has been added. (City of Irvine)
• Language on competitive bidding has been added (current policy silent on
this topicl. (Cities of Los Angeles and Riverside; SDCWA)
Pr000sed Changes for 1999 Statement of Investment Poli v
19 November 1998
Page 6 of 6
15.0 Portfolio Rebalancina (New Sectionl
• Strategy for handiing a violation of portfolio constraint percentages added.
(MWD; SDCVUA; Cities of Vista and Oceanside; and Port of San Diego)
16.0 Credit Downgradina (New Sectionl
• Strategy for handling a federal agency or corporate bond downgrade
added. (City of Stockton; MWD; Counties of Orange and San Diego)
17.0 Internal Controls
• "Negligence" substituted for "employee error".
• Paragraph with examples of internal controls has been added.
• Auditor review of investment policy incorporated. Focus on reviewing
internal controls, not on cash and investments according to GAAP.
• Role of Finance Committee incorporated.
18.0 Performance (New Sectionl
• Language defining portfolio management strategy added (current policy
silent on this). Passive management emphasized; active management only
to improve portfolio risk structure, liquidity, or yield.
• One-year T-bill benchmark incorporated.
• Secondary market T-bill rate used as opportunity cost of capital.
19.0 Re on rtinu
• More report details have been added.
20.0 Policy Ado to ion
• Palm Desert Housing Authority Commission added as an authorizer of City
investment policy.
• Submission deadline moved back to November 30 from January 31 so that
reviewed and approved policy is available in January annually.
Exhibit "A" — ARnroved Provider List ��
• Federal Reserve Bank added since Treasury bills and notes can be
purchased through "Treasury Direct Program" (bypassing brokers and
avoiding commissionsl.
• Direct issuers of commercial paper added since commercial paper can be
purchased directly from corporate issuer (bypassing brokers and avoiding
commissions). The corporate issuers listed, in addition to being Fortune
500 companies, were taken from the County of Los Angeles "Approved
List".
CITY OF PALM DESERT
PALM DESFRT REDEVELOPMENT AGENCY
POLICY CRITERIA FOR ENTERING INTO A
DIVERSIFIED MANAGEMENT COMPANY
SCHEDIlLE II
, 1. The�firm must meet all requiremenu set forth in the California Govemment Code •
Sections 53601 and 53635. _ �-
2. The fund must provide evidence that it has been registered with SEC and has "AAA"
ratin� from Standard 8[ Poor's and Moody's.
3. The fund's investmet�ts shall be limited to direct obligations in ll.S. Treasury bilis, bonds
or notes and repurchase agreemenu, to the extent ailowed by law, and shall mainuin
weighted average maturities within their portfolio of less than 60 days.
4. The fund shall provide us a current prospectus before our participation in the fund.
�5. The fund cannot engage in hed�ing strategies, WI purchases, options; future, reverse-
repurchase agreements, or security lending.
6. The fund must maintain daily, a principal per share vatue of $1.00 per share.
7. The fund shali provide us at least annual financial statemenu on the fund's financial
condition and performance.
8. The fund shall provide us wire inspvctions for the purchase and redempdon of shares
and musc be able to disuibute interest earnings to us on a monthly basis.
9. Unless the fund is more than five years old, the Cty/Agency is to be given iu
performance history since the incepuon of the fund.
Rev: 1/98
' Schedule II
- FID��INSTTPUTIONAL MONEY MARBE�'7DS
� 1Yessury Only Portfolio,'heaear� tp�{�, ����p����r��,��Money Maeket
Portfolio,Moue7 Market Porttulio,and Ta=-Eumpt Portfollo
Ptimds of Colche�er Street'huat
STATF�'1'UF ADDITIONAL INFORMATION
May 29,1gg8
Tlvs Statement of A�klidonal Infoimaflaa(S.Sn is not a paospecA�s bus shwld be tead'm canjimcti�with
�
�°�Prospec4ises(datedMay 29,1998).Please rotain this dacument forfunne:eferonce.'lbe
funds'Annual Report is a sePaiape document supplied aiffi this SAL To obtaia a fiee additional copy of a
Prospectus or an Aomial Repoct,please call Fdelity Qient Secvices(C7ieM Services)at 1-800-843-3001.
TABLE OF CONTENTS PAGE
Investment Policies and Limitadons 2
Portfolio Transactions 14
V»1»afinn
15
SUPPLEMENT TO THE 15
FIDELITY INSTITUTIONAL MONEY MARKET FUNDS' 34
May 29,1998 34
STATEMENT OF ADDITIONAL INFORMATION 36
36
The following replaces similar infomw7ion found in the "/nvestment 41
Policies and Limitations"section of Treasury Portfolio on page 4:
44
(vi)The fund dces no[currently intend to make loans, but this limitation �
does not apply to purchases of debt securities or to repurchase agreements.
47
The following replaces similar information found in the "/nvestment �
Policies and Limimtions"section of Government Portfolio on page 5. 4g
(vi)The fund dces not cutrendy intend to make loans,but t}tis limitation
dces not apply to purchases of debt securities or to repurchase agreements.
The fo!lowing replaces similar information in found in the "Investment
Policies and Limitations"section beginnirtg on page 10:
Federally Taxable Securities Under nortnal conditions,a municipal fund
dces no[ intend to invest in securities whose interest is federally [axable.
However,from time to time on a temporary basis,a municipal fund may invest
a portion of its assets in fixed-income securities whose interest is subject ro
federal income tax.
Should a municipal fund invest in federaqy taxable securipes, it would
purchase securities that,in FMR's judgment,are of high quality.These securities
would include those issued or guaranteed by the U.S.Govemment or its agencies
or inswmentalities and repurchase ageements for those securides.
A municipal money market fund will purchase taxable securities only if
they meet its quality requirements.
Proposals to restrict or eliminate the federal inwme tax exemption for
inreres[on municipal securities aze invoduced before Congress from time to call or write for a free prospectus.Read it carefiilly
time. Proposals also may be invoduced before state legislatures that would
affect the state tax treatment of a municipal fund's distributions. If such
proposals were enacted,[he availability of municipal securities and the value of
a municipal fund's holdings would be affected and the Ttustees would IMM-ptb-0598
reevaluate the fund's investmen[objectives and policies. 475532
IMMB-98-03 (PAGE 1 OF 2) August 5, 1998
450584
other funds advised by FNIIt or its affi�if toml w�ng bonvwinga jm�1Y�b�wIDB would excad 1596 of ihe
Turid's total as5eu. _
(v) 1Le fimd does not cu�rently intend to pu�hase anY�iry i�as a�ssult,mae than 1096 of its net assets would be invesoed'm
secucities that a��to be illiquid bec�se they ace snbjax to kgal a��aos m�salea be�sn:dxy:ca�atba
sold or disposed of in the adinary coucse of business at appmA�ly the prias az which they aie valued.
(vi) The tund does no[cunenfly inte�to engage in iePu��a�tcemmts or make loans,but tlris limitation does na apply to
putchases of debt securities.
(vii) The fund dces not cunendy intend to invest all of iu assets m the senuides of a sinBu open-end management mvesoment
company with substantially d�c same fimdameatal iavesmtent obJ�+�0.P��es,aod]imitati�s es dYe fimd.
For purposes of limitations (1) and (i), certain securides subject to guarantees (includiag ;nn,�n�., leneis of c=edit and
demand feadues) ace not consideied securities of their issuer, but are subject to upacate divecsification requuements. in
accordance with industry standard requiremenu for mo�y market fimds.
Subjut to revision upon 90 days'no6ce to shareholdeis,the fund does oot intend to engage in ceverse repurehase agreements.
For the fund's policies on quality and manuiry. see th� �yan���"���h,�d Maaui�n,,•on page 12
Investment L3mitadoOS of�p p_��
T6e following are the fund's fundamentet investment limitadons set forth in their enthety.The fund may not:
(1) with respect to 75%of the fund's Wtal assets,pu�cy�ase���ties of any issuer(other than sewrities issued or guazan-
teed by the U.S.Govemment or any of its agencies or;�n*+,..��a��,����s of other imesmunt compauies)if.az a iewlt,
(a)more than 5%of the fund's total assets wouid be imesud in the securipes of thaz issuer,or(b)the fund would hold moie than
10% of the outstanding voting securities of tha[issuer;
� (2) issue senior securiues.except as permiaed un�r� �vestment Company Act of 1940;
(3) borrow money,exceot thst the fund may(i)boaow money for temporaip or emeISen�Y P��pdses(not for leveraging or
investment) and(u)engage in nverse cepiuchase e�em��f�.�Y p��;�vided thaz(i)and(ii)in combinaaon do not
exceed 331/3%of the fund's total assets(mcluding tye amwp�mn,�a,ed�less liabilities(other than botrowings),pny boapwings
that come to exceed this amount will be reduced within t�e dayS�ao�incjuding Sundays aad holidays)to the extent�cessary to
comply with the 33 U390 limitation;
(4) undenvrite securities issued by othe�,except m the extent that the fund may be considered an un�cwciter within the
meaning of t6e Securities Act of 1933 in dx dispositioa of nsnicted securities;
(5) P���� securiues of any issuer(other than securities issued or guaranteed by t6e U.S.Govemment or any of its
agencies or ins�umentalities)if,as a iesult,mo:e than 2590 of the fund's wtal asseu wwid be imested in the secuiities of compa-
nies whose pcincipal busiaess activities are in the same indushy;
/(6) buy or sell real estate;
�/ (7) lend any security or make any other ipan if y4 a nsu1G��33 1/3%of its total assets would be lent to other pazties,
but this l�mitauon daes not aoply to purcl�ases of debt securities or to roouccbase a�eme�t�,
(8) invesc in oil,Saz,or other mineral explocation or development progiams:
(9) invest in companies for the ptupose of exercising control or managemenfi or
(10) purchase or sell physical commodities unless acquirod as a msult of owneiship of securities �other insuumenu
(11) The fund may, notwithstanding any oth�r funda�ental iavestment policy or limitation, invest all of its assets in the
securities of a siagle opea-end managoment iavestmeat company with substantially the same fundamental inves�tent objective,
policies and limitations as the fund.
The following inveslm�t limitatiom are aot flmdameatel,aod msy be chaoged without shareholder approvai.
(i) The fund does not curcently incend to purchase a security(other than securities issued or guarantud by du U.S.Govem-
ment or any of iu agencies or insuumentalities or securities of other money marke[funds)if,as a iesult,moie than 5'Yo of its total
assets would be i¢ves[ed in securities of a siagle issuer;pnpvided tltat the fvnd may invest up to 2596 of total useu in the first tier of
�single issuer for up to three business days.
(ii) The fund does not cunently intend to sell securities short,uniess it owns or has the rirtht to obtain securities equivatent in
kind and amount to the secunues sold shor[,and prrn•lded that�aons in futures conuacts and o 'ons are not deemed to
consntu[e sel u�g secunues short.
3
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� : �L.!_r MONEY INVESTMENT A ^
. !APYROVED CORPORATE BOND T6SUER5
� Ocrober 1998 .
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� F:\alemle6ec109i.doc
TOTf� P.02
OFFICE OF THE TREASURER
C/TY OF PALM DESERT
STATEMENT OF INVESTMENT POLICY
FOR CALENDAR YEAR 1999
/�1•''�\
.
.'
. •
.,.
• , . .
Paul S. Gibson
Treasurer
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
SECOND FINANCE COMMITTEE DRAFT
�� I�RO(�G5c0 h����T+o�.15 "ro C.i.t2�2.C-,nT r"�uCy ARE UNOE2��r.iED.
�,� C.HArJGES f1�fa(�i= Si�c� �(aST F,�.o+.i�C G�mrn�T7L-G (�P�. R�.O�inIEP .
3� CRo� Rc�-ax►.,cr,-s To c u a.¢.cm; Po��c y A Rc t.tc�r 'T'o EAct-I T T�c.
CITY OF PALM DESERT
STATEMENT OF INVESTMENT POLICY
Calendar Year 1999
TABLE OF_CONTENTS
SUBJECT PAGE
1 .0 Scope �
2.0 Standard of Care 2
3.0 Objectives 2
4.0 Detegation of Authority 3
5.0 Confiicts of Interest 4
6.0 Authorized Financial Institutions and Dealers 4
7.0 Authorized Investments 7
8.0 Prohibited investments and Practices 9
9.0 Investment Pools g
10.0 Collateralization 10 .
11 .0 Safekeeping and Custody 10
12.0 Diversification � �
13.0 Maximum Maturity 11
14.0 Bond Proceeds � �
15.0 Portfolio Rebalancing 12
16.0 Credit Downgrading 12
17.0 Internal Controls 13
18.0 Performance 13
19.0 Reporting 14
20.0 Adoption 14
APPENDIX
Exhibit "A" -- Approved Provider List 15
Exhibit "B" -- Glossary of Investment Terms 16
CITY OF PALM DESERT
STATEMENT OF INVESTMENT POLICY
Calendar Year 1999
�
POLICY ��� Ir1TR�Duc:,T.o�.1 � PA(�c �l
The purpose of this document is to outline the policy on the investment of
public monies.
It is the policy of the City of Palm Desert, the Paim Desert Redevelopment
Agency, and the Palm Desert Housing Authority (hereafter collectively referred
to as the "City") to predicate their investment policies, procedures, and
practices upon the limitations placed upon them by governing legislative
bodies. These policies shall have three primary goals:
A. To assure compliance with federal, state, and local laws governing the
mvestment of public monies under the control of the Citv Treasurer.
B. To protect the principal monies entrusted to the City.
C. To generate the maximum amount of investment income within the
parameters of prudent risk management, as defined in this Statement of
Investment Policy. "
For the purposes of this policy, "Investment Officers" shall be defined as the
City Treasurer and the City Investment Manager.
1 .0 Scope �'�$�cP���, PA6E t>
This Statement of Investment Policy shall apply to all funds that are
under the control of the City Treasurer, including, but not limited to, the
general fund; special revenue funds; debt service funds; capital project
funds; enterprise funds; trust and agency funds; and any other funds
under the City Treasurer's control. These funds are accounted for in
the City Comnrehensive Annual Financial Reoorts.
The City Deferred Compensation Plan shall be excluded from the scope
. .__.__� _ >�_..�:W...�..,
�of this Stetement of Investment Policy, since rt is managed by a third-
--- -- --- — _ _.�u..._.�
party administrator, and mvested by individual pl_a�participants.
Investment Officers, however, shall be responsible for presenting
quarterly reports to the Finance Committee and to the City Council that
.__._ .___ _ _. _ _----
describe the investment of the City Deferred Compensation Plan assets.
CPD Statement of Investment Policv
Calendar Year 1999
Page 2 of 21
2.0 Standard of Care �"EvA�uAt�onl OF I �IdGSTtl6ni OFFc�z ACT,o+JS", PA6� 3�
Investment Officers, as trustees of public.monies,_shall adhere to the
...�. ..._.. _
" rudent inyestor'�standard when„managing,th,e,Ci�y mvestme�j
portfolio�The�r shall invest �� with care, skill, pruden ^ce, and diligence
under the circumstances then prevailing, including, but not limited to,
the general economic conditions�end the anticipated needs of the
agency, that a prudent person acting in a like capacity and familiarity
with those matters would use in the conduct of funds of a like
..�.s...,.._�,o���.
character and with like aims, to safeguard the princi al and maintain
the liquidit _needs of the agenc r�."; �",` ."""�m""�"'""'_
Investment Officers who follow the provisions of this Statement of
Investment Policy and who exercise due diligence, shall be relieved of
personal responsibility for a security's credit risk or market price
changes: nrovided, that they report substantial deviations from
expectations to the City Manager and to the City Finance Committee
("Finance Committee") in a timely manner, and that appropriate action
is taken to control adverse developments.
3.0 Objectives �'�I�1uCS1ME,r�' �TEci��c5��, I�A6E5 f � Z� "
The City's investment objectives, in order of priority, shall be:
3.1 . Safetv. Safety of principal shall be the foremost objective.
Investments shall be made with the aim of avoiding capital
losses, whether from issuer default; broker-dealer default; or
market value erosion. Principal shall be preserved by mitigating
the following types of risk:
3. 1. 7. Credit Risk, the risk of loss due to the failure of the
issuer of the security, shall be mitigated by investing
in only the highest quality securities; by diversifying
investments; and bv pre-qualifying financial
.,..
institutions, broker-dealers, and direct issuers.
3. 1.2. Maiket Risk, the risk of loss due to a decline in bond
prices because of rising market interest rates, shall
be mitigated by structuring the portfolio so that
issues mature concurrently with the City's
anticipated cash requirements, thereby eliminating
CPD Statement of Inveatment Policy
Calendar Year 1999
Page 3 of 21
the need to sell securities prematurely on the open
market.
It is recognized, however, that in a diversified portfolio,
occasional measured losses are inevitable, and must be
considered within the context of overall investment return.
3.2 L'�i uiditv. An adequate percentage of the portfolio shall be
maintained in liquid, short-term securities that can be converted
to cash, if necessary, to meet disbursement requirements. Since
all cash requirements cannot be anticipated, the portfolio should
consist largely of securities with active secondary markets.
T eh se securitie's should have a relatively low sensitivity to market
,�. . —-------------__----��---_
nsk. Maximum overall_portfolio maturities are referenced in
._ _�..,- _,__ _—
Section 13.0 of_this Statement of Investmen.��t P� o��.
3.3 Yield. Yield shall be considered only after the basic requirements
of safety and liquidity have been met. Whenever possible and in
a manner consistent with the objectives of safety and liquidity,a
-------- ____ _..._.__ .�......_._... __ - --
iv eld higher than the market rate of retum shall_be sousaht.
4.0 Delegation of Authority ���Ai.1TNOQ�T`I To ir.1J65T FJ�JDS��, pA6E Z�
California Government Code Sections 53607 and 53608 authorize the
..�.-,T_�
egis ative o y o a local agency to invest, deposit, and provide for the
sefekeeping of the local_agencv;s funds,, or to delegate those
responsibilities to the treasurer of the local agenc�.
City of Palm Desert Municipal Code Section 3.08.010 delegates the
-,s...�e �_ _�...,��..
aut onty to invest, eposit, and provide for the safekee�n9 of City
.,.._.,..�. ,�.. �— ��n -�..n ..�R
public monies, to_,the City Treasurer.
Citv of Palm Desert Municinal Code Section 2.16.010 authorizes the
w.._.�._ ..______. _.. ,....� _d...,.a....,._...��..�.,.�.-....,...�
ity irector o inance to serve ex officio as City Treasurer. He shall
..--- --------- _-- -- --- ----- =-�.._.
be responsible for all investment transactions that are executed on
_ __---- -- .,.
-behal�o�the Cify.----
The City Treasurer shall establish written procedures for the operation
_.� _._-�._.�.�..�.._._., _ _r. _.
of the City investment program fhat are consistent with the provisions
___ . . _ _. -_ _....__.._. __ __ ,�_...�......�.�_,..�....�
of_this Statement of Investment Policy. Procedures deemed most
_ .. ._ .....�......._
important shall include: safekeeping; wire transfer agreements; banking
_
service contracts; and collateralization agreements.
. . _. ._.... ,,. .... . _.. ., . . .... _ . _.,-�.,._._._...,�...
CPD Statement of Investment Policv
Calendar Year 1999
Page 4 of 21
Investment Officers shall have the exclusive authority to buy and sell
securities on behalf of the City. They shall engage in mutual
consultation and in collective decisionmaking on economic trends,
mvestment opportunities,.and�ortfolio structurinq.
The Investment Manager may initiate investment transactions on behalf
of the City onty if the Citx Treasurer has previouslv authorized the
transactionsLLin writing. In the event that the City Treasurer is
�..�...w..._.,.a... .... _......... _.
unavailable, then: (1 ) the Finance Operations Manager; (2) the City
IVlanager or (3) an Assistant City Manager, in that order of succession,
shall authoriie the investment transactions, in writing, �rior to
.�....._..,_.._...._.:,..�..,,..._....�......�....�..�._..r.�...,w.��..�r �..�.
execution.
.._�..�_.
5.0 Conflicts of Interest ('`ET��cs A�o c�nrl,c�s OF inlTERts`� ` , (�/�CE 31
Investment Officers shall refrain from personal business activity that
could conflict with the proper execution of the City investment program
or impair their ability to make impartial investment decisions. They
shall disclose to the Palm Desert City Council �"City Council") any
material financial interest in financial institutions that conduct business
within the City's jurisdiction. They shall also disclose any large �
personal investment positions that could be related to the performance
of the City investment portfolio. Investment Officers shall subordinate
their personal investment transactions to those of the City, particularly
with regard to the timing of securities purchases and sales, and shall
avoid transactions that might impair public confidence.
Investment Officers and their immediate relatives shall not accept or
solicit anY gifts,gratuities,_honorariums, or favors from persons or
entities who provide or who are seeking to provide financial services to
ih�e C��t��i. �------- ----
6.0 Authorized Financial Institutions and Dealers �5 AME NEAP��-tG , P/aGE�{�
The City Treasurer shall keep an "Approved Provider List" (see Exhibit
"A") of all commercial banks, savings and loan associations, securities
broker-dealers, and direct issuers of securities eligib�e for purchase
(hereafter collectively referred to as "Providers") that the Finance
-��..�.,,.,�� — .,....
Committee and the Citv Council has authorized to provide financial
■IMI�011' III�
services to the City, based upon their credit worthiness. This list shall
be provided to all members of the City Council and the Finance
______..._._---------__.____._.____...,......,.._.
Committee.
�.-.. __ ...._,
CPD Statement of Inve�tment P�i���
Calendar Year 1999
Page 5 of 21
The securities broker-dealers must be primary dealers that regularly
report to the Federal Reserve Bank of New York. The Finance
Committee, at its discretion, however, may authorize regional broker-
dealers that: (1) have been in existence for more than five years; (2)
have a net capital position in excess of 5100 million; (3) are licensed as
broker dealers by the State of Califomia, �n� {�.j ���_'�����'�,�f ��SLNEO�'f.� IIu
1'k��� �€ �1t81l1!C� fl��T�6 17t.����'�C��'C�T�; to provide financial services to the
.:
City.
The City shall not do business with any Provider that has, within any "Su�lEou� QN
consecutive four-year period following 1 January 1996, made a political
contribution in an amount exceeding the limitations in Rule G-37 of the
Municipal Securities Rulemaking Board, to any member of or candidate
for the City Council, �h� I��c���s��r�a�7�v�1��n�r���, t�� t�v����
I�k�tihbCit�'<�ttCt'tk'44[���Gt1�: or to any member of the Finance Committee.
Any new broker-dealers that wish to qualify for addition to the
"Approved Provider LisY' may apply annually, in January. They must,
at a minimum, provide the City Treasurer with a copy of the following
documents, unless otherwise noted:
a) Latest annual audited financial statements.
b) National Association of Security Dealers ("NASDAQ") "Certificate
of Membership".
c) NASDAQ "Form BD — Uniform Application for Broker-Dealer
�istration". ���
d) Current "Form BD Status Report".
e) NASDAQ "Form U-4 -- Uniform Application for Securities
Industry Registration or Transfer" for each employee with whom
the City would be trading.
f) Current "Form U-4 Status Report" on each employee with whom
the City would be trading.
g) A resume from each employee with whom,the City would be
tradin�.
h) A trading resolution.
i) State of California Department of Corporations "Broker-Dealer's
Certificate".
j) Completed "Broker-Dealer Questionnaire and Certification"
(original onlyl.
kntit��rrf�nt;��►�er� ��r�11 rn�+���at�#���r �trr�l���i� 1r� ar�l���i
tl�tertttEne �€tt��'Y S�:� �r��d:�qU�teEy e��xtt�Eizet�� �Z};8�r�su�;E�t�t�
Calendar Year 1999
Page 6 of 21
�FMGF��i4t��.RY FF�Z��'Y �,��tbN�W[��,a.��9 ' .�G 1�'�FMF>��SY.. �y....Q � ` .�
I���C#3'�f h.�l�'s��" ,�"��*��fl�x�°��'�39�� 4���$ �g� 6 p NO'�S` '�o '.
• .... ...<� .. .... �`*Lm,�`�'. .. . `.`fr�: ,�F,„ry�i
New broker-dealers may be requested to provide local government or
other client references from within California.
The Finance Committee and the City Council shall review the submitted
documents, along with the Investment Officers's recommendations, and
shall select the broker-dealers that will be added to the City's
"Approved Provider List".
If a broker-dealer fails to compiete and submit the required documents
on time, then its appiication shall be deemed to have been automaticaliy
�-.�°.--=�v---- - _
re�ected, If he� ity either rejects or fails to an�ro��e a broker dealer'c
aool'ication. then that brok r-d aler �hall b in ligible for three
consecutive vears to rea�Rly for addition to the ['ity�S "QD rov �
Provider List", �----------- -"
The City 7reasurer shall conduct an annual review, in March, of the
financial condition and registrations of approved broker-dealers in order
to determine whether they should remain on the "Approved Provider
List". In addition to other requirements, these broker-dealers shall be �
given the current City investment policy and a certification form. The
completion and submission of the certification form by a broker-dealer
shall constitute proof that it has received the City investment policy;
read it; and intends to comply with it. The City Treasurer shall keep
current audited annual financial statements on file for each broker-
dealer with which the City does business.
The City shall only deposit public monies in qualified public`�SCilEDu�.L- I��
depositories. The City may deposit public monies in federally- and Np,q
state-chartered commercial banks and savings and loan associations
that have a branch office within Riverside County.
Such institutions shall also be favorably rated as determined by the City '�a,'��PQ6E (�
Treasurer, based upon statistical ratings from Sheshunoff Information
Services, Inc. or from another nationally recognized r'ating service. The
institution shall also have at least S5 billion in total assets and a core
---_.�,.._. _
capital-to-total assets ratio of at least five percent. Under no
circumstancesx shall City deposits exceed the institution's total
shareholders's equity.
CPD Statement of Inv -�cment Poli�
Calendar Year 1999
Page 7 of 21
7.0 Authorized Investments �SAm� f i,,E ; PA6�s y-6�
The City is authorized to invest in the following financial instruments
pursuant to California Government God Section 53600 et seq. City
investment policy is more than conservative than state law.
7.1 llnited States Treas�ry Bills ti�+�Q R�.+.+Q n.+.+ rs.«:s:.,s.eQ „s
Indebtedness. There shall be no concentration limit on the
purchase of Treasuries, other than for zero coupon securities.
Purchases of zero coupon T�easuries shall not exceed three years
�._.,._ ____.__ ___....,_.�..
to maturity. _ Purchases of�zeio coupon Tieasuiies shal/ not
exceed f0 percent of the cost value of the portfolio (excluding
......._...___..._ . _ _ .�........ ..:..__ ._.._
ihe proceeds of iax-exempf bonds).
7.2 Federal Age�y and Instr�mp�rArr., ti„re�, ►nvestment shafl be
permitted in the following discount, coupon, and variable rate
security issuers: Federal Farm Credit Bank; Federal Home Loan
Bank; Federal Home Loan Mortgage Corporation; Student Loan
Market Association; Federal National Mortgage Association;
Tennessee Valley Authority; Export-Import Bank of the United
States; Federal Land Bank; Small Business Administration; and "
Federal Credit Consolidated System. Pu�chases of callable
securities sha/l not exceed 20 percent of the cost value of the
portfolio. Purchases of ca/lable secu�ities shall not exceed more
- -- _ _..__
than five percent of the cost value of th�ortfolio in any_one
year. No mo�e than 25 percent of the cost value of the portfo/io
_ _____--_— --,---
(excluding the proceeds of tax exempt bondsl may be invested in
_:__„__�� - - —.�..._,.._
any one rssuer.
7.3 Medium Term Notes 1"MTN"1, Investment shall be limited to
MTNs rated "A" or better by Standard & Poor's Corporation
("Standard & Poor's") or by Moody's Investors Services, Inc.
("Moody's"1, that are issued by corporations organized and
operating in the United States. Purchases of ':4� rated MTNs
sha/l not exceed two years to matu�ity; 'AA" rated MTNs three
yea�s to maturity; and 'AAA' rated MTNs five years to maturity.
Pu�chases of MTNs shal/not exceed 30 percent of the cost value
of the porifolio. No more than five percent of the cost value of
the portfolio shall be invested in the MTNs of any one issuer.
Comme�cial paper holdings shall be conside�ed when calcu/ating
the maximum percentage of any issuer name.
CPD Sta m n of Inv tm nt Polij;
Calendar Year 1999
Page 8 of 21
7.4 Bankers's Acceotances ("BA"1. Investment shall be permitted in
domestic BAs issued by commercial banks that are favorably
rated as determined by the City Treasurer, based upon statistical
ratings from Sheshunoff_ Information Services, Inc. or from
another nationally recognized rating service. Pu�chases of BAs
sha/l not exceed 270 days to maturity. Purchases of BAs sha//
not exceed 40 percent of the cost value of the portfolio. No
more than 30 percent of the cost value of the portfolio shall be
invesied in BAs issued by any one bank.
7.5 Commercial Paoer 1"Gp"). Investment shall be permitted in
"prime" CP that is rated "A1 " by Standard & Poor's or "P1 " by
Moody's. The issuing corporation must be organized and
operating in the United States; have total assets of 5500 million
or more; and have long-term debentures that have been rated
"A" or higher by Standard & Poor's or by Moody's. Purchases of
CP shall not exceed 180 days to maturity. No more than 15
percent of the cost value of the portfolio shall be invested in CP.
No more than 10 percent of the outstanding CP of any one issue�
shall be purchased.
7.6 �Ion-Nes�otiable Certificat s of D posit 1"GD"). Investment shall
be permitted in non-negotiable, collateralized CDs issued by
qualified public depositories that meet the criteria specified in
Section 6.0 of this Statement of Investment Policy. CDs shall be
centralized at one designated office location for each financial
�nstrtution �� �ha� �x��� �'�C��,f��A�� �� �t���Fa����si
p�rsva� �t� ��c�r�sn 't'� � af�t��,S��arr�a�a;��3��ln�t�e���tt�y.
. .:. � .�
Purchases of CDs shall not exceed one year to matu�ity. No a, PAC�E �o
more ihan 15 percent of the cost value of the portfolio shall be pN�
------
mvested in CDs. lf collatera/ization will not be involved, then no ��S��cDu:.6I�
�._..,__W.__�_.._..___ .. __ ___.__, m.. ,
more than 590,000 may be invested in any one issuer.
7.7 Mutuai Funds. Investment shall be permitted in money market �p,'� pl�6� S
mutual funds ("MMMF") that invest Qp1y in United States A�.to
Treasury bills, notes, �}�� bonds, �;
a�eea'�ea�s. In seeking to maintain a stable share price of �S��U��
$1 .00, the MMMF shall have a dollar-weighted average maturity
of 90 days or less, and shall purchase securities with an effective
—- ___._ _ �.... ..
matunty of 13 months or less. Commission (e.g„ sales load on
purchases, reinvested dividends, redemptions, and exchangesl
—. _. _ __ _ .
shall not �be included in the purchase of any fund shares.
CPD Statement of Irn��tment Polic��
Calendar Year 1999
Page 9 of 21
Additionally, a qualifying MMMF must have: (1) totaJ portfolio
net assets of S500 million or more; � (2J the highest ratinq of
two of the ihree la�gest nationally recognized �ating services, g�
an investment advisor who is registered with the Securities and
Exchange Commission and who has five yea�s's or mo�e of
experience investing fo� MMMFs of 5500 million or more in total
portfoho net assets. `'�'`� '`""�"''�""```"�'"'"``'� ^'�°" �
. --�-..�..x.,�,�. �,
1"�i�:s:. "a;::�t'fi#EI>`=':F �::�':u <�;�°>t
st�L�rrt�tts fr�ar�s �[E< �I�t�t� �� wI���h �,�k��s �r��7t� �nE�s
, ..
,,,.�: _�
tr��r��::..;t .r
7.8 !ocal Agency Investment F md (" AIF"l. investment shall be
permitted in this pool which is organized and managed by the
State Treasurer's Office for the benefit of local agencies,
pursuant to California Gov rmm �t ode Section 16429.1 . The
City Council and the Redevelopment Agency Board approved City
participation in LAIF on 12 December 1981 in Resolution Number
81-161 . lnvestment shal/ be limited to the maximum amount
per legal entity that is permitted unde� state law.
8.0 Prohibited Investments and Prectices �IJEW SEL;io�..:�
���#��et�t�#�f����`� shall not invest public monies in
financial instruments that are not described under Section 7.0 of this
Statement of Investment Policy.
Prohibited investments shall include, but shall not be limited to, equi�
, —__ _ __ __:___- -__. .
��Cu;ti7��, bond mutual funds, and derivative contracts (forwards,
__._�..�. �M__.______.�_
futures, and o tions►. The urchase of derivative securities shall be
�.� P_�_—_.__ __�.��.—•-- —�z.r__..,.
prohibited, except fo� callable and for ze�o coupon Treasury (`STRIPS"1
secu�ities.
_ - ---- ._�,�---- _ ____�.�
� triu��tttit�itt..;t����et� shall not engage in securities
�� .:
lend�ng ("sell�ng short ), gr:u��d�'a�ie�M1�R�tr,��s�`,.'��erxl�sn�� Ctr`t�s�ers�
r��turnh�s�;a�r��r�fents'.
�t�Ivl� a�i� �!�':s#�a11 :�e<��e� �,�i`��.the' r�'i�#���s.�;d�ri�aitis�e
COf1�r�t�� �I���g 8�r�ltt�l'tit��i1'S� i� tl�` ;����f�Y6�5 ,R�'E�I
' « �p�x.�a°�yyy�e�� �wMw.:.
�e�ure#3� t�r��za�. t�n€Y.,t:A3�,��a�t�k b��e���t���a��t � prt+��bs��+� a�
d+�rt�atiu� s��.
Calendar Year 1999
Page 10 of 21
9.0 Investment Pools �SAM� Ti I'i,E, G.4(�E ��
1�i�f��i'C�Brs�,,<,���CE��S shall investigate all local
......:.::. .:..::::........
government investment pools ("LGIPs") prior to investing public monies,
and periodically thereafter while City public monies are invested in the
LGIP. With the exception of LAIF, all LGIPs shall meet the criteria
specified in Section 7.7 of this Statement of Investment Policy.
10.0 Collateralization ( "SCNCDULE I°�
tzti�E��t����ff�'Cet's shall ensure that all demand
deposits and non-negotiable CDs which exceed $100,000 shall be fuliy
collateralized with securities authorized under state law and under this
Statement of Investment Policy. Coliateral may be waived for the first
5100,000 since this wili be. insured by the Federal Deposit Insurance
Corporation. Any amount on deposit over 5100,000 plus accrued
interest, however, shall be collateralized with United States Treasury or
federal agency securities at a constant margin ratio of 110 percent, or
with mortgage-backed collateral at a constant margin ratio of 150
percent.
Collater_alized investments and demand deposits__ may_ reguire
.^-,___---__--------_.
substitution of collateral. The City Treasurer must�approve all requests
from financial institutions for substitution of collateral that involve
interchanging classes of security. � � �
An independent third party with whom the City has a current custodial
agreement, shall always hold the collateral. The independent third
party shall provide the City Treasurer with a safekeeping receipt that he
shall retain.
11 .0 Safekeeping and Custody ���SAFEKE�P��6 OF Sr�u¢iTes� PA6c5 (�E1�
. <:.
�ie--6+tjc Ir��r�tt't`►et7� ��'�lG�tt,S shall conduct all e#--i�s security
. ...:.........
transactions on a delivery-versus-payment ("DVP") basis. A third-party
bank trust department that acts as an agent for the City under the
terms of a custody agreement executed between the bank and the City,
shall hold the securities. The only exception to the foregoing shall_be
securities purchases made with: (1) local government investment
pools; (2) money_market mutual funds; and (3) Federal Reserve Banks'
___
(."Treasury_,Direct_ Program"1, since the purchased securities are not
deliverable.
CPD Statement of Inve��ment Policv
Calendar Year 1999
Page 11 of 21
No outside broker-dealer or investment advisor shall have access to City
monies, accounts, or investments. Any transfer of monies to or
through an outside broker-dealer must have the City Treasurer's prior
written approval. If the Citv Treasurer is unavailable, then the
-:. ,: „
management authorization chain-of-command specified in Section 4.0,
�----_..._.__.- --- __.._.__..____._.._______�.
paragraph six, of this Statement of Investment Policy, shall be followed.
Confirmation receipts shall be required on all trades. Investment
Officers shall review these receipts immediately upon delivery, for
conformity with City transaction documentation.
12.0 Diversification (SAr1E T�T�r, Pqc�E 'I�
�� ��1�#�#s`��ef�t #�#��G#�& shall diversify ' ' ' �� � '
, . . , �
il�ves#rr��Itfi�tt��E�Ez� by security type and by institution, except for bond
reserve monies; bond escrow monies; and any other monies approved
by the Finance Committee or by the City Council.
13.0 Maximum Maturity ("f�Axih-tUN MAr�z�r,cS��, 'PA6E ��
. <,
�e-�� �#�u�1lit!'�lt�'t E3�#��8t'S shall not invest in securities with
......�...,..::...............:,._,:::::..,
maturities exceeding five years. The Finance Committee and the City
Council, however, may approve longer maturities for the investment of
bond reserve, bond escrow, and other funds if the maturities of such
investments are expected to coincide with the expected use of the
funds.
At all times, at least 50 percent of the City portfolio sha/l mature in
three years o� /ess; 30 percent in iwo yea�s or less; and 20 pe�cent in
one year or /ess.
14.0 Bond Proceeds l SAI'4L-. TiTLC , P-���'i�
The City Treasurer shall segregate tax-exempt bond proceeds from the
City general pool and shall keep them in a separate pool. They shall be
invested pursuant to the instructions in the respective bond indentures
of trust. If the bond indenture authorizes investments that conflict with
this Statement of Investment Policy, then such investments shall be
made only with the Finance Committee's prior approval. All securities
shall be held in third-party safekeeping with the bond trustee, and alI
DVP rules shall apply.
Calendar Year 1999
Page 12 of 21
Investment Officers_ shail use competitive bidding, whenever practicai,
for all investment transactions that involve the proceeds of tax-axempt
,.._. _,-,
bonds. A minimum of three bids shall be obtained from approved
_._._.� �------- --
Brokers. Any exceptions to this policy shall be documented and shall
, _.. ,_,_. - m
be reported to theyFinance Committee at its next monthly meetin�.
The City is required under the "U.S. Tax Reform Act of 1986" to
._.g_ . ,.:-..�.,. . . _ _ _ ,.. __ .�.-..._,_�.
perform annual_arbitrage calculations and_to rebate excess earnings to
the United States Treasury from the investment of tax-exempt bond
proceeds that were sold after the effective date of this law. The City
...�....._.�__._..,�__ _-___. . _. _ _ ..._ . _._.._.v..��._..�...�
Treasurer may contract with a qualified outside financial consultant to
, _. _ . _ . ,_�_
provide the necessary technical expertise that is required to comply
--.__ _ _ _ _ _
with this re.g,ulation.
15.0 Portfolio Rebalancing ��.IE� Sc.c�r,o�,�
In the event that portfolio percentage constraints are violated due to a
---- .____.. _____._..__._..---
temporary imbalance in the portfolio, then Investment Officers shall
hold the affected securities to maturity in order to avoid capital losses.
If no capital losses would�be realized upon sale, however, then
Investment Officers shall consider rebalancing the portfolio, after
._._._..._.�_.�.,..,_.__.___..__ _ _�__.__----_._______�
evaluating the expected length of time that the portfolio will be
__�____. .._ _ . _ .
imbalanced. Portfolio percentage limits are in place in order to ensure
---- __
diversrfication of the City investment portfolio; a small, temporary
�. _ _ -
-- _ —-------
imbalance will not_significantly impair that strategY.
16.0 Credit Downgrading �►.l�W Sc.GTo.��
This Statement of Investment Policy sets forth minimum credit risk
r_......., .,...,. ,.
criteria for each type of security. This credit risk criteria applies to the
�__
_ _ - --- _ __ __ ___.. ___ _.
initial purchase of a security; it does not automatically�force the sale of
_ _ _ __ _ _ __.
a security if its credit risk ratin�s fall below policy limits.
If a security is downgraded below the minimum credit risk criteria
r._.._.. .._. .._._.._ ._. _, _ _. . _ _ _- ----
specified in this Statement of Investment Policy, then Investment
Officers shall evaluate the downgrade, on a case-by-case basis, to
._�,__.. ,._ .__ . _ _
determine whether to hold or sell the security.
The City Treasurer shall inform the Finance Committee at its next
F�_ _ _ _ ___ _ — _. _.___. .
monthly meeting of the credit downgrade, and of the Investment
Officers's decision to hold or sell the downgraded secur�. ��
CPD Statement of Inv4�cment Polic�•
Calendar Year 1999
Page 13 of 21
Investment Officers shall review the credit standing of all securities in
- --__.._�_____ _ _ _ ..��
the City investment portfolio on a quarterly basis.
17.0 Internal Controls ("In"iERatA� ConTrt,o�.5��, PAC� 3�
The City Treasurer shall be responsible for ensuring compliance with the
City investment policy, as well as for establishing internal controls that
are designed to prevent losses due to fraud, negiigence, and third-party
misrepresentation.
Internal controls deemed most important shall include: control of
collusion; separation of duties and administrative controis; separating
transaction authority from accounting and record keeping; custodial
safekeeping; clear delegation of authority; management approval and
review of investment transactions; specific limitations regarding
securities losses and remedial action; written confirmation of telephone
transactions; and documentation of investment transactions and
strategies.
The City Treasurer shall establish an annual process of independent ''�nv�TMmi „
review by an external audit firm. The external auditor shall review the �o�«ti ���E�' ii
management of the City investment program, in terms of compliance PA6E $
with the internal controls previously established in the City of Palm
Desert Treas�ry Policiac Anrl Prnnnil��ree M�n���l
A Finance Committee consisting of City officials and community"��l�ESTM�++r
representatives shall be responsible for reviewing the City investment F��aN�t ,
reports, transactions, policies and procedures, and strategies, on a �Omm�n� ,
monthly basis. The Mayor; Mayor Pro-Tempore; City Manager; City P��b�s Z E3
Attorney; Redevelopment Agency Executive Director; City Director of
Finance; City Investment Manager; and various citizens who are
appointed by the City Council, shall sit on this committee.
18.0 Performance �nlEw S��T�o..l
The City investment portfolio, for the most part,_shall be passiyely
_�_.,
managed, with portfolio securities being_held to_ maturity. _On selected_
occasions, the City portfolio may _be actively managed for purposes _of.
improving portfolio risk structure, liquidity, or yield in response to
market conditions_or. City requirements. Profit-taking may only be done
if capital gains would: (1 ) exceed the return that would be realized by
Calendar Year 1999
Page 14 of 21
holding the security to maturity; and (2) more than offset any income
reduction due to reinvestment rate risk.
The City shall use a one-year United States Treasury biii that is traded
on the secondar market, as a benchmark to measure whether o
City portfolio yield is matching or surpassing market yield.
19.0 Reporting �'�RcPoRT�a� (Z[-pJyQ,EHb✓�'S'�, PA6� 1�
The City Treasurer shall provide a monthly investment report to ihe
Finance Committee and to the City Council within 30 days of month-
end, or at the next scheduled City Council meeting following a Finance
Committee meeting.
This report shall include a complete portfolio inventory, with details on
issue; par value; book value; coupon/rate; original settlement date of
urp chase; final maturity date; CUSI� P num�b,e_; average weighted yield;
ayera e days to maturity; and market value (including source of market
valuation►. The report will include a statement on compliance or
noncompliance with the City investment policy, and a statement on
whether there are or are not sufficient funds to meet the City's
anticipated cash requirements for the next six months.
20.0 Adoption �u �n1VE.sTHtrr ?ouc y AOoGTo.-��� Pt�t Fl
The City Treasurer shall submit a Statement of Investment Policy to the
Finance Committee; the City Council; the Redevelopment Agency
Board; and the Housing Authority Commission, annually for their review
and approval. This statement shall_presented to the Finance
Committee by November 30 of each year.
CPD Sta m n of Inv rmpnt Policv
Calendar Year 1999
Page 15 of 21
EXWIBIT "A"
APPROVED PROVIDER LIST
���F�2M1 d��ri-��lUzc�9 lo C.znauci +-�JESTMe-rrT IR,6ti.ISAG'Cro�.lS�, Sc.H�-OU�C: I�!)
The following institutions have been authorized by the Palm Desert City
Council; the Palm Desert Redevelopment Agency Board; and the Palm Desert
Housing Authority Commission, to provide financial services to the City.
1. United States Government �n1Ew S��:T�oa�
A. Federal Reserve Bank
II. Primary Dealers
A. Morgan Stanley Dean Witter & Company
B. Salomon Smith Barney, Inc.
III. Regional Dealers
A. Union Bank of California
B. Welis Fargo Bank
�
�
�
�-
�
�
-F-
V. Public Depositories
A. Union Bank of California
B. Bank of America
C. U.S. Bank (formerly First Trust California)
_ _ �..w,..
D. Washington Mutual Bank (formerly Great Western Bank)
E. Home Savings of America
F. Downey Savings & Loan
G. Glendale Federal Bank
CPD Statement of Inu@�cment po��;-•
Calendar Year 1999
Page 16 of 21
EXHIBIT "B"
GLOSSARY OF INVESTMENT TERMS
AGENCIES. Federal agency and instrumentality securities.
ASKED. The price at which securities are offered.
BANKERS'S ACCEPTANCE (BA). A draft, bill, or exchange accepted by a
bank or a trust company. Both the issuer and the accepting institution
guarantee payment of the bill.
BID. The price offered by a buyer of securities (when you are selling
securities, you ask for a bid►. See "Offei'.
BROKER. A broker brings buyers and sellers together so that he can earn a
commission.
CERTIFICATE OF DEPOSIT (CD1. A time deposit with a specific maturity, as
evidenced by a certificate. Large-denomination CDs are typically negotiable.
COLLATERAL. Securities, evidence of deposit, or other property which a
borrower pledges to secure repayment of a loan. Also refers to securities
pledged by a bank to secure deposits of public monies.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR►. The official annual
report for the City of Palm Desert. It includes five combined statements for
each individual fund and account group, that are prepared in conformity with
GAAP. It also includes supporting schedules that are necessary to
demonstrate compliance with finance-related legal and contractual provisions,
extensive introductory material, and a detailed statistical section.
COUPON. (a) The annual rate of interest that a bond's issuer promises to
pay the bondholder on the bond's face value. (b) A certificate attached to a
bond, that evidences interest due on a payment date.
DEALER. A dealer, as opposed to a broker, acts as a principal in all
transactions, buying and selling for his own account.
DEBENTURE. A bond secured only by the general credit of the issuer.
CPD Statement of Inve��ment Poli -y
Calendar Year 1999
Page 17 of 21
DELIVERY VERSUS PAYMENT. There are two methods of delivery of
securities: (1) delivery versus payment (DVP1; and (2) delivery versus receipt
(DVR). DVP is delivery of securities with an exchange of money for the
securities. DVR is delivery of securities with an exchange of a signed receipt
for the securities.
DERIVATIVES. (1 ) Financial instruments that are linked to, or derived from,
the movement of one or more underlying indexes or securities, and may
include a leveraging factor; or (2) financial contracts based upon a notional
amount whose vatue is derived from an underlying index or security (e.g.,
interest rates, foreign exchange rates, equities, or commodities).
DISCOUNT. The difference between the acquisition cost of a security and its
value at maturity, when quoted at lower than face value. A security that sells
below original offering price shortly after sale, is also is considered to be at a
discount.
DISCOUNT SECURITIES. Non-interest bearing money market instruments that
are issued a discount and that are redeemed at maturity for full face value
(e.g., U.S. Treasury Bills).
DIVERSIFICATION. Dividing investment funds among a variety of securities
that offer independent returns.
FEDERAL CREDIT AGENCIES. Agencies of the Federal Government that were
established to supply credit to various classes of institutions and individuals
(e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and
exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). A federal agency
that insures bank deposits, currently up to 5100,000 per deposit.
FEDERAL FUNDS RATE. The rate of interest at which Fed funds are traded.
This rate is currently pegged by the Federal Reserve through open-market
operations.
FEDERAL HOME LOAN BANKS (FHLB). Government-sponsored wholesale
banks (currently 12 regional banks) which lend funds and provide
correspondent banking services to member commercial banks, thrift
institutions, credit unions, and insurance companies. The mission of the
CPD Statement of Inye�cment Policv
Calendar Year 1999
Page 18 of 21
FHLBs is to liquefy the housing-related assets of its members, who must
purchase stock in their District Bank.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA). FNMA, like
GNMA, was chartered under the Federal National Mortgage Association Act in
1938. FNMA is a federal corporation working under the auspices of the
Department of Housing and Urban Development (HUD). It is the largest single
provider of residential mortgage funds in the United States. Fannie Mae, as
the corporation is called, is a private stockholder-owned corporation. The
corporation's purchases include a variety of adjustable mortgages and second
�oans, in addition to fixed-rate mortgages. FNMA's securities are aiso highly
liquid and are widely accepted. FNMA assumes and guarantees that all
security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMIT7EE (FOMC). The FOMC consists of seven
members of the Federal Reserve Board and five of the 12 Federal Reserve
Bank Presidents. The President of the New York Federal Reserve Bank is a
permanent member, while the other Presidents serve on a rotating basis. The
Committee periodically meets to set Federal Reserve guidelines regarding
purchases and sales of government securities in the open market, as a means
of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM. The central bank of the United States created
by Congress and consisting of a seven-member Board of Governors in
Washington, D.C., 12 regional banks, and about 5,700 commercial banks that
are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie
Mae). Securities that influence the volume of bank credit which is guaranteed
by GNMA and issued by mortgage bankers, commercial banks, savings and
loan associations, and other institutions. A security holder is protected by the
full faith and credit of the U.S. Government. Ginnie Mae securities are backed
by the FHA, VA, or FMHM mortgages. The term "passthroughs" is often
used to describe Ginnie Maes.
LIQUIDITY. A liquid asset is one that can be converted easily and rapidly into
cash without a substantial loss of value. In the money market, a security is
said to be liquid if the spread between bid and asked prices is narrow, and
reasonable size can be done at those quotes.
GPD Statement of Inves�ment Poli � � �
Calendar Year 1999
Page 19 of 21
LOCAL GOVERNMENT INVESTMENT FUND (LAIF). Monies from local
governmental units may be remitted to the California State Treasurer for
deposit in this special fund for the purpose of investment.
MARKET VALUE. The price at which a security is trading and couid
presumabiy be purchased or sold.
MASTER REPURCHASE AGREEMENT. A written contract covering all future
transactions between the parties to repurchase-reverse repurchase
agreements, that establishes each party's rights in the transactions. A master
agreement will often specify, among other things, the right of the buyer
(lender) to liquidate the underlying securities in the event of default by the
seller (borrower).
MATURITY. The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET. The market in which short-term debt instruments (e.g.,
bills, commercial paper, bankers's acceptances) are issued and traded.
OFFER. The price asked by a seller of securities (when you are buying
securities, you ask for an offer►. See "Asked" and 'Bid".
OPEN MARKET OPERATIONS. Purchases and sales of government and
certain other securities in the open market by the New York Federal Reserve
Bank, as directed by the FOMC in order to influence the volume of money and
credit in the economy. Purchases inject reserves into the bank system and
stimulate growth of money and credit; sales have the opposite effect. Open
market operations are the Federal Reserve's most important and most flexible
monetary policy tool.
PORTFOLIO. A col�ection of securities held by an investor.
PRIMARY DEALER. A group of government securities dealers that submit
daily reports of market activity and positions, and monthly financial
statements to the Federal Reserve Bank of New York, and are subject to its
informal oversight. Primary dealers include Securities and Exchange
Commission (SEC) -- registered securities broker-dealers, banks, and a few
unregulated firms.
PRUDENT INVESTOR RULE. An investment standard. A fiduciary, such as a
trustee, may invest in a security if it is one that would be bought by a prudent
CPD Statement of InvescmenX Policv
Calendar Year 1999
Page 20 of 21
investor acting in like capacity, who is seeking reasonable income and
preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES. A financial institution that: (1) does not
claim exemption from the payment of any sales, compensating use, or ad
valorem taxes under the laws of this state; (2) has segregated for the benefit
of the commission eligible collateral having a value of not less than its
maximum liability; and (3) has been approved by the Public Deposit Protection
Commission to hold public deposits.
RATE OF RETURN. The yield obtainable on a security based on its purchase
price or its current market price.
REPURCHASE AGREEMENT (RP OR REP01. A holder of securities sells them
to an investor with an agreement to repurchase the securities at a fixed price
on a fixed date. The security "buyer", in effect, lends the "seller" money for
the period of the agreement, and the terms of the agreement are structured to
compensate him for this. Dealers use RP extensively to finance their
positions. Exception: when the Fed is said to be doing RP, it is lending
money (increasing bank reserves►.
SAFEKEEPING. A service to customers rendered by banks for a fee whereby
securities and valuables of all types and descriptions are held in the bank's
vaults for protection.
SECONDARY MARKET. A market made for the purchase and sale of
outstanding issues following the initial distribution.
SECURITIES & EXCHANGE COMMISSION. An agency created by Congress to
administer securities legislation for the purpose of protecting investors in
securities transactions.
SEC RULE 15c3-1 . See "Unifo�m Net Capital Rule".
STRUCTURED NOTES. Notes issued by instrumentalities (e.g., FHLB, FNMA,
SLMA) and by corporations, that have imbedded options (e.g., call features,
step-up coupons, floating rate coupons, derivative-based returns) in their debt
structure. The market performance of structured notes is affected by
fluctuating interest rates; the volatility of imbedded options; and shifts in the
yield curve.
CPD Statement of Investment Poli v
Calendar Year 1999
Page 21 of 21
TREASURY BILLS. A non-interest bearing discount security that is issued by
the U.S. Treasury to finance the national debt. Most T-bills are issued to
mature in three months, six months, or one year.
TREASURY BONDS. Long-term, coupon-bearing U.S. Treasury securities that
are issued as direct obligations of the U.S. Government, and having initial
maturities of more than 10 years.
TREASURY NOTES. Medium-term, coupon-bearing U.S. Treasury securities
that are issued as direct obligations of the U.S. Government, and having initial
maturities of two to 10 years.
UNIFORM NET CAPITAL RULE. SEC requirement that member firms, as well
as nonmember broker-dealers in securities, maintain a maximum ratio of
indebtedness-to-liquid capital of 15 to 1 . Also called net capita/ rule and net
capita �atio. Indebtedness covers all money that is owed to a firm, including
margin loans and commitments to purchase securities (one reason that new
public issues are spread among members of underwriting syndicates). Liquid
capital includes cash and assets easily converted into cash.
YIELD. The rate of annual income return on an investment, expressed as a
percentage. (a) INCOME YIELD is obtained by dividing the current dollar
income by the current market price for the security. (b) NET YIELD or YIELD
TO MATURITY is the current income yield minus any premium above par or
plus any discount from par in purchase price, with the adjustment spread over
the period from the date of purchase to the date of maturity of the bond.
GOVT § 536003, Prudent invesr,,. standard; investments on behalf of local age_.-.es Page 2
*195603 WesPs Ann.Cal.Gov.Code§536003
WEST'S ANNOTATED CALIFORNIA CODES `
GOVERNMENT CODE
TITLE 5. LOCAL AGENCIES
DIVISIOIV 2. CITIES, COUN'TIES AND OTHER AGENCIES �
PA�iT 1. POWERS AND DUTIES COMMON TO CTTIES,COUNTIES,AND
OTHER AGENCIES
CHAPTER 4. FINANCIAL AFFAIRS
ARTICLE 1. INVESTMENT OF SURPLUS
Cunent through /997 portion of I997-98 Reg. Sess. and/st Ex. Sess.
§ 53600.3. Prudeat investor standard; investments on behalf of local agencies
Except as provided in subdivision (a) of Secrion 270003, all goveming bodies of]ocal agencies or
persons authorized to make investrnent decisions on behalf of those local agencies investing public funds
pursuant to this chapter aze hvstees and therefore fiduciazies subject to the prudent investor standard.
When invesring, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a
trustee shall act with caze, skill, prudence, and diligence under the circumstances then prevailing,
including, but not limited to, the genera] economic conditions and the anticipated needs of the agency,
that a prudent person acring in a like capacity and familiariry with thpse matters would use in the conduct
of funds of a like chazacter and with like aims, to safeguard the principal and maintain the liquidity needs
of the agency. Withitt the limitations of this section and considering individual investments as part of an
overail strategy,investments may be acquired as authorized by law.
CREDIT(S)
1997 Main Volume
(Added by Slats.1995, c. 784(SB.866J,,§11. Amended by Stats.l996,c. 749(S.B./09),§4.f
<General Materials (GM) -References,Annotations, or Tables>
ANNOTATIONS
NOTES OF DECISIONS
Laches 1
1.Laches
A bill to eharge a munieipal eorporation as a voluntary trustee under a Iegislative act which required it to levy and collect
taxes within a certain improvement district,and from the fund collected to pay the interest and principal of certain bonds,of one
of which complainant was the owner, which shows on its face thaz the defendant ceased and refused to perfortn any of such
required acts 25 years before the bill was filed,that no interest had been paid since that time,and thaz the bonds matured 8 years
before suit, and allcges no facts which excuse the delay in bringing suit,discloses such laches as to defeat the right to maintain
the suit and renders the bill demurrnble. Eddy v.City and County of San Francisco, 1908, 162 F.44t, 89 C.C.A.327,cectiorari
denied 30 S.Ct.405,215 U.S.604,54 L.Ed.345.
Copyright(c) West Group 1998 No claicn to original U.S. Govt. works