HomeMy WebLinkAboutCompliance Analysis and Investment Reports - October-December 2004CITY OF PALM DESERT
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: NIAMH ORTEGA, RECORDING SECRETARY
DATE: JANUARY 26, 2005
SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS
Please find attached the Compliance Analysis and Investment Reports for October,
November and December 2004, which were presented and approved at the meeting of
January 26, 2005. Please include on the upcoming agenda for review and acceptance
by City Council
Please feel free to contact me at Ext. 382 if you have any questions. Thank you.
nmo
Attachment (as noted)
G:\Finance\Niamh Ortega\Wpdocs\Investment Committee\Memoslrklasseninvreport012605.wpd
ity of Palm Desert
y and Redevelopment Agency Portfolios'
A
ctober 2004
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Open Market Committee (FOMC) met on
2.00%. This was the fourth increase since June 2004.
emergency levels that were put in place to combat the
in the 3.00% range for sustainable economic growth.
10 November, and raised the Federal Funds Rate by 25 basis points to
These increases have been aimed at raising rates from the
risk of deflation. It is thought that the Federal Funds Rate needs to be
Opinion is split on whether the FOMC will continue to raise short-term interest rates at "a measured pace," or whether future
rate increases will be driven by economic data. If the FOMC adopts the former strategy, then there will probably be another
25 basis -point increase at the 14 December meeting, and the Federal Funds Rate could be at 3.00% by the end of 2005. The
futures market currently assigns a 78% probability to the likelihood that the FOMC will raise the Federal Funds Rate by
another 25 basis points at the December meeting. Recent statements by FOMC officials, however, suggest that rate
increases will more likely by driven by economic data.
Although the economy is in its third year of expansion, employment and wage growth have lagged. The labor force
participation of highly educated and well -paid workers has dropped sharply, while it has risen for less -educated workers. Strong
employment numbers in October might signal the end of this tepid job growth.
Pc uLS. 6C1)J -n C. C. Al. 7:
Treasurer
Dollars in Thousands
OCT-04
CITY
Month -End Book Value*** $ 130,550 $
Month -End Market Value*** $ 130,866 $
Paper Gain (Loss) $ 316 $
Prior Year Book Variance $ (3,592) $
Interest Earnings $ 200 $
Yield -To -Maturity 1.96%
Weighted Maturity (Days) 124
Effective Duration 0.17
RDA
Month -End Book Value *** $
Month -End Market Value *** $
Paper Gain (Loss) $
Prior Year Book Variance $
Interest Earnings $
Yield -To -Maturity
Weighted Maturity (Days)
Effective Duration
149,149 $
149,180 $
31 $
4,929 $
216 $
1.73%
65
0.09
PORTFOLIO STATISTICS
SEP-04
132,121 $
132,403 $
282 $
(6,242) $
191 $
1.84%
123
0.18
158,671 $
158,703 $
32 $
5,778 $
202 $
1.61%
62
0.10
AUG-04 JUL-04 JUN-04 MAY-04
136,973 $ 141,472 $ 142,417 $
137,299 $ 141,687 $ 142,542 $
326 $ 215 $ 125 $
(48,236) $ (34,365) $ (35,770) $
195 $ 187 $ 174 $
1.74% 1.68% 1.58%
121 128 133
0.19 0.22 0.23
125,903
126,048
145
(55,318)
159
1.53%
120
0.18
160,693 $ 175,311 $ , 184,909 $ 179,643
160,783 $ 177,512 $ 187,083 $ 181,819
90 $ 2,201 $ 2,174 $ 2,176
37,378 $ 74,760 $ 85,643 $ 77,086
217 $ 234 $ 183 $ 161
1.51% 1.53% 1.37% 1.17%
•71 134 128 81
0.12 0.13 0.15 0.02
Omits SLGSs.
Dollars in Thousands
Aaeina Interval
<1M
< 2M
< 3M
< 6M
< 1YR
< 2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
City of Palm Desert -- Portfolio Characteristics
31 October 2004
Market Value
$ 59,660
3,017
5,450
8,327
3,462
5,944
85,860
Ratin s * Market Value
AAA $ 29,153
Unrated ** 72,785
AA 4,658
A 8,402
A-1 6,034
Total: $ 121,032
Sector Markey e
Money Market Funds $ 19,682
LAIF 40,000
RDA Loan 32,785
MTNs 15,496
U.S. Treasury
Federal Agency 7,035,035
Commercial Paper
Total: $ 121,032
Month Ci Yield LAIF Yield Variance
Nov03 1.61 1.57 0.03
Dec 1.58 1.55 0.03
Jan04 1.58 1.53 0.05
Feb 1.58 1.44 0.14
Mar 1.56 1.47 0.09
Apr 1.54 1.45 0.09
May 1.53 1.43 0.11
Jun 1.58 1.47 0.11
Jul 1.68 1.60 0.07
Aug 1.74 1.67 0.06
Sep 1.84 1.77 0.07
Oct 1.96 1.89 0.07
General Fund Ageing
Asset Allocation
Performance
RDA Loan
30%
Nov03Dec Jan04Feb Mar Apr May Jun Jul Aug Sep Oct
■LAIF Yield ®City Yield
* Moody's Credit Ratings
** LAIF, and City Loan to RDA
Page 2 of 8
Par Value
Medium -Term Notes
$ 2,406,000
$ 3,000,000
$ 2,500,000
$ 2,425,000
$ 2,360,000
$ 1,270,000
$ 1,000,000
$ 14,961,000
Issuer
ABBOTT LABS
FORD
FORD
GENERAL ELECTRIC
NORTHERN TRUST
PITNEY BOWES
WACHOVIA
Subtotal
City of Palm Desert
Portfolio Holdings
31 October 2004
Coupon 1 Maturity
6.80 5/15/05
7.20 6/15/07
7.20 6/15/07
4.25 1/28/05
6.65 11/9/04
5.95 2/1/05
7.70 2/15/05
Commercial Paper --
$ 3,025,000
$ 3,031,000
$ 6,056,000
Discount
GENERAL ELECTRIC
GENERAL ELECTRIC
Subtotal
Cost I YTM
$ 2,466,269
$ 3,100,248
$ 2,583,540
$ 2,442,097
$ 2,362,853
$ 1,284,544
$ 1,018,063
Market
Price I Value
2.08 102.15 $
5.75 108.08 $
5.75 108.08 $
1.30 100.50 $
1.17 100.08 $
1.32 100.75 $
1.38 101.55 $
$ 15,257,613 3.07
2,457,849
3,242,442
2,702,035
2,437,062
2,361,803
1,279,503
1,015,473
IRatings I
15,496,168
1.55 12/15/04 $ 2,999,603 1.61 99.74 $ 3,017,022
1.64 1/14/05 $ 2,999,932 1.70 99.54 $ 3,017,171
6,034,193
Federal Agencies -- Discount
$ 1,015,000 FED NATIONAL MTG ASSOC 1.92
$ 3,035,000 FED NATIONAL MTG ASSOC 1.71
-$ 3,045,000 FED NATIONAL MTG ASSOC 1.79
$ 7,095,000
LGIP
$ 40,000,000
$ 40,000,000
LGIP
$ 11,350,526
1
1
Subtotal
$ 11,350,526
L.A.I.F.
Subtotal
C.A.M.P.
Pooled Funds -- AIM
$ 8,329,858 PRIME PORTFOLIO
5,999,535 1.66
5/2/05 $ 997,021 2.00 98.90 $ 1,003,835
3/3/05 $ 2,995,644 1.78 99.30 $ 3,013,755
4/1/05 $ 2,999,427 1.86 99.11 $ 3,017,900
$ 7,035,490
6,992,092 1.85
0.00 11/1/04 $ 40,000,000 1.89 100.00 $ 40,000,000
$ 40,000,000
$ 40,000,000 1.89
Moody's ! S P
Al
A3
A3
P-1
Aa3
Aa3
Aa3
P-1
P-1
Aaa
Aaa
Aaa
AA
BBB -
BBB -
A-1 +
AA -
AA
A
A-1 +
A-1 +
AAA
AAA
AAA
U
I
1
Subtotal
0.00 11/1/04 $ 11,350,526 1.56 100.00 $ 11,350,526
11,350,526
$ 11,350,526 1.56
AAA
$ 8,329,858
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT
Subtotal
Subtotal
0.89 11/1/04 $ 8,329,858 1.41 100.00 $ 8,329,858
8,329,858
$ 8,329,858 1.41
Aaa
AAA
32,785,480
Total Investments
$ 120,577,864
0.00 11 /1 /34 $ 32,785,480 1.89 100.00 $ 32,785,480
$ 32,785,480
$ 32,785,480 1.89
$ 120,715,103 1.96
$ 121,031,714
"U" = Unrated
Page 3of8
Cash
$ 9,107,708
$ 351,229
$ 22,874
$ 352,705
CITY MAIN CHKG
DESERT WILLOW CHKG
OFFICE COMPLEX TRUST
RECREATIONAL FAC CHKG
Total Investments and Cash
$ 130,412,380
City of Palm Desert
Portfolio Holdings
31 October 2004
0.00 11/1/04 $ 9,107,708 0.00 100.00 $ 9,107,708 N/A N/A
0.00 11/1/04 $ 351,229 0.00 100.00 $ 351,229 N/A N/A
0.00 11/1/04 $ 22,874 0.00 100.00 $ 22,874 N/A N/A
0.00 11/1/04 $ 352,705 0.00 100.00
$ 352,705 N/A N/A
$ 130,549,620
Corporate Issuer Concentrations in City Portfolio
GENERAL ELECTRIC 6.99%
FORD 4 71 %
ABBOTT LABS 2.04%
NORTHERN TRUST 1.96%
PITNEY BOWES 1.06%
WACHOVIA 0.84%
$ 130,866,231
"U" = Unrated
Page 4 of 8
Dollars in Thousands
Aaeina Interval
<1M
< 2M
< 3M
< 6M
< 1YR
<2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
Qualit * $ 82,873
AAA Unrated ** 60,899
AA
A 3,016
A-1 Total: $ 146,788
Palm Desert Redevelopment Agency -- Portfolio Characteristics
31 October 2004
Market Value
$ 70,853
1,982
9,049
$ 81,884
Sector $ 23,064
U.S. Treasury 51,790
Money Market Funds 60,898
LAIF 8,020
Federal Agency 3,016
Commercial Paper
Corporate Bonds -
$ 146,788
Total:
Market Value
Market Value
Month RDA Yield LAIF Yield Variance
Nov03 1.29 1.57
1.29 1.55 -0.25
Dec
Jan04 1.24 1.53 -0.29
1.20 1.44 -0.24
Feb Mar 1.20 1.47 -0.28
1.22 1.45 -0.23
Apr May 1.17 1.43 -0.26
1.37 1.47 -0.10
Jun Jul 1.53 1.60 -0.08
1.51 1.67 -0.16
1.61 Aug 1.77 -0.17
Sep_0.16
Oct 1.73 1.89
AA
0%
A
0%
Unrated **
41%
Money Market
Funds
38%
LAI F
45%
NovO3 Dec Jan04 Feb Mar Apr May Jun Jul Aug Sep Oct
* Moody's Credit Ratings
** LAIF
Page 5of8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 October 2004
Market
Ratings
IPar Value
Issuer I Coupon I Maturity I Cost I YTM
Commercial Paper -- Discount
$ 3,039,000 GENERAL ELECTRIC
Price I Value
1.73 3/1/05 $ 2,999,569 1.80 99.24 $ 3,016,018
Moody's ' S & P
P-1
A-1 +
$ 3,039,000
Subtotal
2,999,569 1.80
3,016,018
U.S. Treasury -- Coupon
$ 23,107,000 UNITED STATES TREASURY 1.63 3/31/05 $ 23,084,757 1.86 99.81 $ 23,063,674
Aaa
AAA
$ 23,107,000
Subtotal
$ 23,084,757 1.86
23,063,674
Federal Agency -- Coupon
$ 1,983,000 FED HOME LOAN MTG 1.88 1/15/05 $ 1,983,701 1.70 99.97 $
1,982,380
Aaa
AAA
$ 1,983,000
Subtotal
1,983,701 1.70
1,982,380
Federal Agency -- Discount
$ 3,040,000 FED NATIONAL MTG ASSOC 1.75 3/4/05 $ 2,999,509 1.82 99.29 $ 3,018,416
$ 3,040,000 FED NATIONAL MTG ASSOC
1.71 3/1/05 $ 3,001,012 1.78 99.31 $ 3,019,024
Aaa
Aaa
AAA
AAA
LGIPs
`$ 40,000,000
$ 5,997,875
$ 5,066,620
$ 9,834,304
L.A.I.F.
L.A.I.F.
L.A.I.F. BOND PROCEEDS
L.A.I.F. BOND PROCEEDS
0.00 11/1/04 $ 40,000,000 1.89 100.00 $ 40,000,000
0.00 11/1/04 $ 5,997,875 1.89 100.00 $ 5,997,875
0.00 11/1/04 $ 5,066,620 1.89 100.00 $ 5,066,620
0.00 11/1/04 $ 9,834,304 1.89 100.00 $ 9,834,304
U
U
U
U
U
U
U
U
$ 60,898,799
Subtotal
60,898,799 1.89
60,898,799
LGIP
$ 20,966,530
C.A.M.P.
0.00 11/1/04 $ 20,966,530 1.56 100.00 $ 20,966,530
AAA
$ 20,966,530
Subtotal
$ 20,966,530 1.56
20,966,530
Pooled Funds -- AIM
$ 30,823,217 PRIME PORTFOLIO
0.00 11/1/04 $ 30,823,217 1.41 100.00 $ 30,823,217
Aaa
AAA
$ 30,823,217
Subtotal
30,823,217 1.41
30,823,217
Total Investments
$ 146,897,546
Cash
$ 2,070,284
$ 321,784
HOUSING AUTH TRUST 0.00 11/1/04 $ 321,784 0.00 100.00 $ 321,784
$ 146,757,093 1.73 $ 146,788,058
HOUSING AUTH CHKG 0.00 11/1/04 $ 2,070,284 0.00 100.00 $ 2,070,284 N/A N/A
N/A
N/A
$ 2,392,068 Subtotal
2,392,068 $ 2,392,068
"U" = Unrated
Page 6 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 October 2004
Par Value
Issuer I Coupon I Maturity I Cost
1
YTM
Total Investments and Cash
$ 149,289,614
Corporate Issuer Concentrations in RDA Portfolio
GENERAL ELECTRIC 2.04%
$ 149,149,161
Market
Ratings
I
Price I Value
1 Moody's S J
' & P
$ 149,180,126
"U" = Unrated
Page 7 of 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert ("City") and the Palm Desert Redevelopment Agency ("RDA") are
governed by federal, state, and local law. The City Treasurer's "Statement of Investment Policy" is more restrictive than the
California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the
Statement of Investment Policy annually.
For the month ended 31 October 2004, the City and the RDA investment portfolios were in compliance with all applicable
federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority).
Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities
are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances.
Respectfully submitted on 24 November 2004,
PauZS.Q'—scrr4 r*
City Treasurer
CA Govt
Code
SUMMARY OF AUTHORIZED INVESTMENTS
I
California Government Code I
City Investment Policy
Investment Category
Maximum Maximum Quality Maximum Maximum Quality % of City % of RDA
Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio
53601(a)
Palm Desert Bonds
5 Years
No Limit
Not Authorized (1)
53601(b)
w
tJ.S. Treasur.�ies,..,.
5 Years
No Limit
S Years
No Limit
�
0.0% I 15.7%
53601(c)
CA State Debt
5 Years
No Limit
Not Authorized
53601()
CA Local Agency Debt
5 Years
No Limit
Not
Authorized
53601(e)Federal
Agencies
5 Years
No Limit
5 Years
30%
-1.
5.8%
5.4%
53601(0
Bankers's Acceptances
180 Days
40%
180 Days
40%o
A-1 & P
-
-
53601(g)
Commercial. Paper
270 Days
25%
A-1+ or P-1
270 Days
25%
A-1+ or P-1
5.0%
2.0%
53601(h)
Negotiable tbs
5 Years
30%
5 Years
30%
AA -or Aaa
-
-
53601(i.)
Repos
1 Year:
No Limit
30 Days
20%
AAA & Aaa
-
-
53601(i)
Reverse Repos
92 Days
20%
Not Authorized
53601(j)
Medium Term o0es
5 Years
30%
A
5 Years
30%
r A
12.6%
0.0%
53601(k)
Mutual' . unds'
90 Days
20%
AAA & Aaa
90 Days
20% (2)
AAA & Aaa
6.9%
21.0%
53601(I)
Trust Indenture Debt
Not Authorized
53601(m)
Secured Bank Deposits
5 Years
No Limit
Not Authorized
53601(k)
Local Government"`
Investment Pools
90 Days
20%
AAA & Aaa
or Advisor
90 Days
20% (2)
AAA & Aaa
or Advisor
9.4%
14.3%
53601(n)
Mortgage -Backed
Securities
5 Years
20%
A (Issuer) &
AA (Security)
Not Authorized
' LAIF
No Limit
No Limit
33.1%
41.5%
(1) The City
(2) Maximum
loan to RDA, which is not a bond, has been approved by the Palm Desert City Council.
limit for mutual funds and local government investment pools, excluding bond proceeds.
72.8%
100.0%
* Certified California Municipal Treasurer
Page 8 of 8
of bairn bese�
edevelopment Xgency Portfolios
ovember`
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Open Market Committee (FOMC) met on December 14th, and raised the Federal Funds Rate by 25 basis points
to 2.25%. This was the fifth consecutive time that the FOMC has raised short-term interest rates. Investors trading futures
contracts based upon movements in the Federal Funds Rate have assigned a 100% probability to another 25 basis -point
increase at the next FOMC meeting on February 1st and 2nd, 2005.
A number of Federal Reserve officials believe that the risk of inflation may be increasing, due to slowing producitivity growth; a
lower dollar; high energy and commodity prices; recent inflation data, and anecdotal evidence of businesses raising prices.
So far, however, the declining dollar has only caused a modest increase in import prices, because foreign companies have
resisted raising prices, in order to avoid losing market share in the U.S.
The yield curve continued to flatten as short-term interest rates rose modestly, while intermediate- and long-term rates fell
10-20 basis points. Solid economic growth and an improving labor market supported a rise in short-term interest rates.
Long-term interest rates declined because of the market's perception that long-term inflation would remain stable, despite a
rise in oil prices and a decline in the U.S. dollar. Under that scenario, the FOMC would raise short-term interest rates with
less urgency, particularly if an economic slowdown in Europe were to travel across the Atlantic.
Pas Qt aon c, C. iti. r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
CITY
Month -End Book Value*** $ 128,602 $ 130,550 $ 132,121 $ 136,973 $ 141,472 $ 142,417
Month -End Market Value*** $ 128,877 $ 130,866 $ 132,403 $ 137,299 $ 141,687 $ 142,542.
Paper Gain (Loss) $ 275 $ 316 $ 282 $ 326 $ 215 $ 125
Prior Year Book Variance $ (3,536) $ (3,592) $ (6,242) $ (48,236) $ (34,365) $ (35,770)
Interest Earnings $ 214 $ 200 $ 191 $ 195 $ 187 $ 174
Yield -To -Maturity 2.08% 1.96% 1.84% 1.74% 1.68% 1.58%
Weighted Maturity (Days) 119 124 123 121 128 133
Effective Duration 0.15 0.17 0.18 0.19 0.22 0.23
NOV-04 OCT-04 SEP-04 AUG-04 JUL-04 JUN-04
RDA
Month -End Book Value *** $ 148,730 $ 149,149 $ 158,671 $ 160,693 $ 175,311 $ 184,909
Month -End Market Value *** $ 148,761 $ 149,180 $ 158,703 $ 160,783 $ 177,512 $ 187,083
Paper Gain (Loss) $ 31 $ 31 $ 32 $ 90 $ 2,201 $ 2,174
Prior Year Book Variance $ 4,546 $ 4,929 $ 5,778 $ 37,378 $ 74,760 $ 85,643
Interest Earnings $ 221 $ 216 $ 202 $ 217 $ 234 $ 183
Yield -To -Maturity 1.84% 1.73% 1.61% 1.51% 1.53% 1.37%
Weighted Maturity (Days) 65 65 62 71 134 128
Effective Duration 0.07 0.09 0.10 0.12 0.13 0.15
* Omits SLGSs.
Dollars in Thousands
Ageing Interval
<1M
< 2M
<3M
< 6M
< 1YR
< 2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
City of Palm Desert -- Portfolio Characteristics
30 November 2004
Market Value
$ 68,475
5,454
2,295
11,132
5,945
$ 93,301
Ratings * Market Value
AAA $ 29,181
Unrated ** 72,785
AA
2,286
A 9,955
A-1 11,053
Total: $ 125,260
Sector Market Value
Money Market Funds $ 19,706
LAIF 40,000
RDA Loan 32,785
MTNs 14,673
U.S. Treasury
Federal Agency 7,043
Commercial Paper 11,053
Total: $ 125,260
Month City Yield LAIF Yield Variance
Dec03 1.58 1.55
0.03
Jan04
1.58 1.53 0.05
Feb 1.58 1.44
0.14
Mar
1.56 1.47 0.09
Apr 1.54 1.45 0.09
May 1.53 1.43 0.11
Jun 1.58 1.47
0.11
Jul
1.68 1.60 0.07
Aug 1.74 1.67 0.06
Sep 1.84 1.77 0.07
Oct 1.96 1.89
0.07
Nov
2.08 2.00 0.08
* Moody's Credit Ratings
** LAIF, and City Loan to RDA
General Fund Ageing
0
.2
0
a.
100
80
60
40
20
Performance
2.2
1.9
F0
1.0
<1M
<2M
< 3M
<6M < 1 YR <2YR
Dec03JanO4Feb Mar Apr May Jun Jul Aug Sep Oct Nov
■LAIF Yield ®City Yield
Page 2 of 8
City of Palm Desert
Portfolio Holdings
30 November 2004
Market
Ratings
I Par Value I Issuer
Medium -Term Notes
$ 2,406,000
$ 3,000,000
$ 2,500,000
$ 1,610,000
$ 2,425,000
$ 1,270,000
$ 1,000,000
ABBOTT LABS
FORD
FORD
FORD
GENERAL ELECTRIC
PITNEY BOWES
WACHOVIA
'Coupon' Maturity I Cost I YTM
6.80 5/15/2005 $
7.20 6/15/2007 $
7.20 6/15/2007 $
6.75 5/15/2005 $
4.25 1/28/2005 $
5.95 2/1/2005 $
7.70 2/15/2005 $
2,456,949
3,097,062
2,580,885
1,638,550
2,436,202
1,279,696
1,012,852
Price I Value
2.08 101.70 $
5.75 106.76 $
5.75 106.76 $
2.80 101.62 $
1.30 100.30 $
1.32 100.46 $
1.38 101.05 $
2,446,911
3,202,845
2,669,038
1,636,125
2,432,163
1,275,875
1,010,538
Moody's' S & P
Al
A3
A3
A3
Aaa
Aa3
Aa3
AA
BBB -
BBB -
BBB -
AAA
AA
A
$ 14,211,000
Subtotal
14,502,196 3.35
14,673,496
Commercial Paper --
$ 3,025,000
$ 3,031,000
$ 5,013,000
Discount
GENERAL ELECTRIC
GENERAL ELECTRIC
WELLS FARGO BANK
1.55 12/15/2004 $ 2,999,603 1.61 99.90 $ 3,022,114
1.64 1/14/2005 $ 2,999,932 1.70 99.71 $ 3,022,172
1.92 12/20/2004 $ 4,999,899 1.95 99.90 $ 5,008,217
P-1
P-1
P-1
A-1+
A-1+
A-1+
$ 11,069,000
Subtotal
10,999,434 1.79
11,052,503
Federal Agency -- Discount
$ 1,015,000 FED NATIONAL MTG ASSOC 1.92 5/2/2005 $
$ 3,035,000 FED NATIONAL MTG ASSOC 1.71 3/3/2005 $
$ 3,045,000 FED NATIONAL MTG ASSOC 1.79 4/1/2005 $
997,021 2.00 98.98 $
2,995,644 1.78 99.41 $
2,999,427 1.86 99.21 $
1,004,647 Aaa
3,017,094 Aaa
3,020,945 Aaa
AAA
AAA
AAA
$ 7,095,000
Subtotal
6,992,092 1.85
7,042,685
LGIP
$ 40,000,000
L.A.I.F.
0.00 12/1/2004 $ 40,000,000 2.00 100.00 $ 40,000,000
$ 40,000,000
Subtotal
$ 40,000,000 2.00
$ 40,000,000
LGIP
$ 11,366,550
C.A.M.P.
0.00 12/1/2004
11,366,550 1.73 100.00 $ 11,366,550
AAA
$ 11,366,550
Subtotal
11,366,550 1.73
$ 11,366,550
Pooled Funds -- AIM
$ 8,339,945 PRIME PORTFOLIO
0.00 12/1/2004 $ 8,339,945 1.58 100.00 $ 8,339,945 Aaa
$ 8,339,945
Subtotal
8,339,945 1.58
8,339,945
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT
0.00 12/1/2004 $ 32,785,480 2.00 100.00 $ 32,785,480
$ 32,785,480
Subtotal
$ 32,785,480 2.00
32,785,480
Total Investments
$ 124,866,975
$ 124,985,697 2.08 $ 125,260,659
"U" = Unrated
Page 3 of 8
I Par Value
Cash
$ 3,010,439
$ 182,231
$ 22,874
$ 400,943
$ 3,616,487
Issuer
CITY MAIN CHKG
DESERT WILLOW CHKG
OFFICE COMPLEX TRUST
RECREATIONAL FAC CHKG
Subtotal
City of Palm Desert
Portfolio Holdings
30 November 2004
'Coupon' Maturity I Cost
0.00
0.00
0.00
0.00
12/1/2004 $
12/1/2004 $
12/1/2004 $
12/1/2004 $
Total Investments and Cash
$ 128,483,462
3,010,439
182,231
22,874
400,943
3,616,487
$ 128,602,184
0.00
0.00
0.00
0.00
Market
Price
100.00 $
100.00 $
100.00 $
100.00 $
Value
3,010,439
182,231
22,874
400,943
$ 3,616,487
Ratings
Moody's' S & P
$ 128,877,146
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
"U" = Unrated
Page 4 of 8
Dollars in Thousands
Ageing Interval
<1M
< 2M
<3M
< 6M
< 1YR
< 2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
Palm Desert Redevelopment Agency -- Portfolio Characteristics
30 November 2004
Market Value
$ 70,855
1,982
9,054
$ 81,891
Quali * Market Value
AAA $ 82,426
Unrated ** 60,898
AA -
A
A-1 3,020
Total: $ 146,344
Sector Market Value
U.S. Treasury $ 23,056
Money Market Funds 51,343
LAIF 60,899
Federal Agency 8,026
Commercial Paper 3,020
Corporate Bonds
Total: $ 146,344
Month RDA Yield LAIF Yield Variance
Dec03 1.29 1.55 -0.25
Jan04 1.24 1.53 -0.29
Feb 1.20 1.44 -0.24
Mar 1.20 1.47 -0.28
Apr 1.22 1.45 -0.23
May 1.17 1.43 -0.26
Jun 1.37 1.47 -0.10
Jul 1.53 1.60 -0.08
Aug 1.51 1.67 -0.16
Sep 1.61 1.77 -0.17
Oct 1.73 1.89 -0.16
Nov 1.84 2.00 -0.17
Portfolio Ageing w/o SLGSs1
100
90
80
70
0 60
'0 50
't 40
a° 30
20
10
0
87
11
0 2 n 0 0 0 0
< 1 M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR
Dec031an04Feb Mar Apr May Jun Jul Aug Sep Oct Nov
* Moody's Credit Ratings
** LAIF
Page 5 of 8
IPar Value
Issuer
Commercial Paper -- Discount
$ 3,039,000 GENERAL ELECTRIC
$ 3,039,000
Subtotal
Palm Desert Redevelopment Agency
Portfolio Holdings
30 November 2004
Coupon Maturity 1 Cost YTM I Price
Market
Value
1.73 3/1/2005 $ 2,999,569 1.80 99.39 $ 3,020,410
$ 3,020,410
$ 2,999,569 1.80
Ratings
Moodys IS 8< P
P-1
A-1 +
U.S. Treasury -- Coupon
$ 23,107,000 UNITED STATES TREASURY 1.63 3/31/2005
I $ 23,107,000
Federal Agency -- Coupon
$ 1,983,000 FED HOME LOAN MTG
Subtotal
$ 1,983,000
Subtotal
$ 23,089,206 1.86 99.78
23,089,206 1.86
23,056,453
$ 23,056,453
1.88 1/15/2005 $ 1,983,417 1.70 99.94 $ 1,981,761
$ 1,981,761
$ 1,983,417 1.70
Aaa
Aaa
AAA
AAA
Federal Agency -- Discount
$ 3,040,000 FED NATIONAL MTG ASSOC 1.75 3/4/2005
$ 3,040,000 FED NATIONAL MTG ASSOC 1.71 3/1/2005
$ 6,080,000 Subtotal
LGIPs
$ 40,000,000
$ 5,997,875
$ 9,834,304
$ 5,066,620
I $ 60,898,799
LGIP
$ 20,996,130
$ 20,996,130
L.A.I.F.
L.A.I.F. (HOUSING)
L.A.I.F. BOND PROCEEDS
L.A.I.F. BOND PROCEEDS
Pooled Funds -- AIM
$ 30,347,109 PRIME PORTFOLIO
Subtotal
C.A.M.P.
Subtotal
I $ 30,347,109
Total Investments
$ 146,451,038
Cash
$ 2,093,830
$ 321,357
$ 2,415,187
Subtotal
HOUSING AUTH CHK
HOUSING AUTH TRUST
Subtotal
0.00
0.00
0.00
0.00
$ 2,999,509
$ 3,001,012
1.82 99.41 $ 3,022,064 Aaa
1.78 99.43 $ 3,022,672 Aaa
$ 6,000,521 1.80
$ 6,044,736
12/1/2004 $ 40,000,000 2.00 100.00 $ 40,000,000
12/1/2004 $ 5,997,875 2.00 100.00 $ 5,997,875
12/1/2004 $ 9,834,304 2.00 100.00 $ 9,834,304
12/1/2004 $ 5,066,620 2.00 100.00 $ 5,066,620
$ 60,898,799 2.00
$ 60,898,799
0.00 12/1/2004 $ 20,996,130 1.73 100.00 $ 20,996,130
$ 20,996,130
$ 20,996,130 1.73
0.00 12/1/2004 $ 30,347,109 1.58 100.00 $ 30,347,109
30,347,109
$ 30,347,109 1.58
$ 146,314,750 1.84
$ 146,345,398
U
U
U
U
Aaa
0.00 12/1/2004 $ 2,093,830 0.00 100.00 $ 2,093,830 N/A
0.00 12/1/2004 $ 321,357 0.00 100.00 $ 321,357 N/A
$ 2,415,187
2,415,187
AAA
AAA
U
U
U
U
AAA
AAA
N/A
N/A
1
1
"U" = Unrated
Page 6 of 8
IPar Value
Total Investments and Cash
$ 148,866,225
Palm Desert Redevelopment Agency
Portfolio Holdings
30 November 2004
Issuer I Coupon' Maturity L Cost I YTM
$ 148,729,937
Price 1
Market
Value
$ 148,760,585
Ratings
Moody's IS & P
"U" = Unrated
Page 7 of 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert ("City") and the Palm Desert Redevelopment Agency ("RDA") are
governed by federal, state, and local law. The City Treasurer's "Statement of Investment Policy" is more restrictive than the
California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the
Statement of Investment Policy annually.
For the month ended 30 November 2004, the City and the RDA investment portfolios were in compliance with all applicable
federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority).
Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities
are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances.
Respectfully submitted on 22 December 2004,
PauLS. Gt c. c. M r.
City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
I California Government Code
I City Investment Policy
CA Govt
Code Investment Category
Maximum Maximum Quality Maximum Maximum Quality % of City % of RDA
Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio
53601(a)
Palm Desert Bonds
5 Years
No Limit
Not Authorized (1)
53601(b)
,. ii
ures
U.S. Treasiiei
5 Years
No Limit
SYears I No Limit
53601(c)
CA State Debt
5 Years
No Limit
Not Authorized
53601(d)
CA Local Agency Debt
5 Years
No Limit
Not Authorized
53601(e)
Federal Agencies
5 Years
No Limit
5 Years
30%
53601(f)
Bankers's Acceptances
180 Days
40%0
180 Days
40%
A-1 & P-1
-
-
53601(g)
Commercial F ape'r-
270 Days
25% ',
A-1+ or P 1
270 Days
25%
A-1+ or P-1
8.8%
2.1%
53601(h)
� t —
Negotiable°Cis
5 Years.
30%
5 Years
30%
AA- or Aaa
„�_,
-
-
53601()
Repos ` '
1 Year
No Limit
30 Days
20%
AAA & Aaa
53601(i)
Reverse Repos
92 Days
20%
Not Authorized
53601(j)
Medium Tarmlo ems`
5 Years
30%
A
5 Years
30%
A
11.6%
0.0%
53601(k)
Mutual Funds `5
90 Days
20%
AAA&Aaa
90 Days
20% (2)
AAA & Aaa
15:8%
35.1%
53601(I)
Trust Indenture Debt
Not Authorized
53601(m)
Secured Bank Deposits
5 Years
No Limit
Not Authorized
53601(k)
Local Government
Investment Pools
90 Days
20%
AAA & Aaa
or Advisor
90 Days
20% (2)
AAA & Aaa
or Advisor
32.0%
41.6%
53601(n)
Mortgage -Backed
Securities
5 Years
20%
A (Issuer) &
AA (Security)
Not Authorized
LA-ir ..' "'
No Limit
No Limit
has been approved by the Palm Desert City Council.
73.8%
100.0%
(1) The City loan to RDA, which is not a bond,
(2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds.
* Certified California Municipal Treasurer
Page 8 of 8
Crty of Palmeser>t
City and Redevelopment Agency Portfolios
PLIANC�E ANNALYSIS_AND I VA ESTMENT SREPORT
Decem er
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Open Market Committee (FOMC) will meet next on February 1st and 2nd to review short-term interest rates.
ses are not yet
Consumer spending numbers for the fourth quarter are expectedns or to be strong. Federal the strength of the housingrmarket Mernlat Lynch is forecasting
restrictive enough to dampen consumers s spending patter
four more interest -rate increases, with the Federal Funds Rate
at and by
the end of June 2005. Merrill believes that there
will be a corresponding slowdown in economic growth during
Fannie
The big news in December was the "early" retirement of Fannie Mae'seChieKFf xec tiveiaOfficer, the e e resigThenation
SEC had had made Mae's
Chief Financial Officer, and the dismissal of Fannie Mae's external
finding that Fannie Mae had broken accounting rules, and would have to restate its earnings for the last four years, in order to
recognize $9 billion of losses on derivative contracts. This, in turn, investiused gated foaanothennie atwo yeae to fall rs since hort of lts minimum ts 2002 and 200131
requirement by approximately $3 billion. Fannie Mae may 9uced its
financial statements will have to be reopened. In the meantime, Fanni
e Mae has dmore thatd25% of all U.Srr s dential up
its
capital position. Fannie Mae borrows more than $950 billion annually, Y,and finances
mortgages.
PaAAS. 6'1,blon4 C.C.A1, r
Treasurer
Dollars in Thousands
PORTFOLIO STATISTICS
DEC-04 NOV-04 OCT-04 SEP-04 AUG-04 JUL-04
CITY 128,602 $ 130,550 $ 132,121 $ 136,973 $ 141,472
Month -End Book Value*** $ 124,724 $
Month -End Market Value*** $ 124,992 $ 128,877 $ 130,866$132,403 $ $137,2999 $ $141,687
6 $ 8
Paper Gain (Loss) $ 268 _ $ 275 $ 48,326) $ (34,215
5)
Prior Year Book Variance $ (8,112) $ (3,536) $ (3,592) $ (6,242) $
200 $ 191 $ 195 $ 187
$ 222 $ 214 $ 1 1.195 1.187
Y eId T Earnings 2 08% 1.96% 1.84 /o
Yield -To -Maturity 2.26% 119 124 123 121 128
Weighted Maturity (Days) 121 p 17 0.18 0.19 0.22
Effective Duration
0.14 0.15
RDA
Month -End Book Value*** $ 147,802 $ 148,730 $ 149,149 $ 158,671 $ 160,693 $ 175,311
Month -End Market Value*** $ 147,862 $ 148,761 $ 149,180 $$ 158,703 $$ 160,78833 $ 177,512
Paper Gain (Loss) $ 60 $ 31 $
31 778 $ 37,378 $ 74,760
4,929 $ 5,
Prior Year Book Variance $ 6,079 $ 4,546 $ 239 $ 221 $ 216 $ 202 $ 217 $ 234
$
Interest Earnings 65 1.73% 1.61 % 1.51 % 1.53%
Yield -To -Maturity 2.00% 1.84% 65 62 71 134
Weighted Maturity (Days) 65 0 12 1 4
Effective Duration
0.05 0.07 0.09 0.10
Omits SLGSs.
Dollars in Thousands
Ageing Interval
<1M
< 2M
< 3M
< 6M
< 1YR
< 2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
Ratin s *
AAA
Unrated **
AA
A
A-1
Total:
City of Palm Desert -- Portfolio Characteristics
31 December 2004
Market Value
$ 58,831
2,286
3,017
8,109
5,872
78,115
Market Value
$ 28,218
72,785
2,278
9,935
3,028
$ 116,244
Sector Market Value
Money Market Funds $ 18,733
LAIF 40,000
RDA Loan 32,785
MTNs 14,641
U.S. Treasury
Federal Agency 7,057
Commercial Paper 3,028
Total: $ 116,244
Month City Yield LAIF Yield Variance
Jan04 1.58 1.53 0.05
Feb 1.58 1.44 0.14
Mar 1.56 1.47 0.09
Apr 1.54 1.45 0.09
May 1.53 1.43 0.11
Jun 1.58 1.47 0.11
Jul 1.68 1.60 0.07
Aug 1.74 1.67 0.06
Sep 1.84 1.77 0.07
Oct 1.96 1.89 0.07
Nov 2.08 2.00 0.08
Dec 2.26 2.20 0.06
Performancel
2.4
2.1
F.
e
Ts 1.7
1.4
1.0
Jan04Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
la LAIF Yield ® City Yield
* Moody's Credit Ratings
** LAIF, and City Loan to RDA
Page 2 of 8
IPar Value I Issuer
Medium -Term Notes
$ 2,406,000
$ 3,000,000
$ 2,500,000
$ 1,610,000
$ 2,425,000
$ 1,270,000
$ 1,000,000
$ 14,211,000
ABBOTT LABS
FORD
FORD
FORD
GENERAL ELECTRIC
PITNEY BOWES
WACHOVIA
Subtotal
Commercial Paper -- Discount
$ 3,031,000 GENERAL ELECTRIC
$ 3,031,000
Subtotal
City of Palm Desert
Portfolio Holdings
31 December 2004
'Coupon
6.80
7.20
7.20
6.75
4.25
5.95
7.70
Maturity I Cost I YTM
5/15/2005 $
6/15/2007 $
6/15/2007 $
5/15/2005 $
1/28/2005 $
2/1/2005 $
2/15/2005 $
2,447,629
3,093,876
2,578,230
1,633,328
2,430,306
1,274,848
1,007,642
2.08
5.75
5.75
2.80
1.30
1.32
1.38
$ 14,465,859 2.26
Market Ratings
Price I Value I Moody's ' S & P
101.33 $
106.66 $
106.66 $
101.29 $
100.11 $
100.20 $
100.57 $
2,437,901
3,199,935
2,666,613
1,630,793
2,427,777
1,272,479
1,005,702
$ 14,641,200
1.64 1/14/2005 $ 2,999,932 1.68 99.91 $ 3,028,348
$ 3,028,348
Federal Agencies -- Discount
$ 1,015,000 FED NATIONAL MTG ASSOC 1.92
$ 3,035,000 FED NATIONAL MTG ASSOC 1.71
$ 3,045,000 FED NATIONAL MTG ASSOC 1.79
�$ 7,095,000
LGIP
$ 40,000,000
$ 40,000,000
LGIP
$ 10,383,819
$ 10,383,819
Pooled Funds -- AIM
$ 8,348,223 PRIME PORTFOLIO
Subtotal
L.A.I.F.
Subtotal
C.A.M.P.
Subtotal
$ 8,348,223
City Loan To RDA
$ 32,785,480 CITY OF PALM DESERT 0.00
Subtotal
$ 2,999,932 1.68
5/2/2005 $
3/3/2005 $
4/1/2005 $
$ 6,992,092 1.85
997,021 1.97 99.17 $ 1,006,575
2,995,644 1.75 99.62 $ 3,023,467
2,999,427 1.84 99.40 $ 3,026,730
$ 7,056,772
0.00 1/1/2005 $ 40,000,000 2.20 100.00 $ 40,000,000
$ 40,000,000
$ 40,000,000 2.20
0.00 1/1/2005 $ 10,383,819 1.94 100.00 $ 10,383,819
10,383,819
$ 10,383,819 1.94
0.00 1/5/2005 $ 8,348,223 1.81 100.00 $ 8,348,223
$ 8,348,223
1
$ 32,785,480
Total Investments
$ 115,854,522
Subtotal
8,348,223 1.81
1/1/2005 $ 32,785,480 2.20 100.00 $ 32,785,480
$ 32,785,480
$ 32,785,480 2.20
$ 115,975,405 2.259
$ 116,243,842
Al
A3
A3
A3
Aaa
Aa3
Aa3
P-1
Aaa
Aaa
Aaa
U
Aaa
AA
BBB -
BBB -
BBB -
AAA
AA
A
1
A-1+
AAA
AAA
AAA
AAA
AAA
"U" = Not Rated
Page 3 of 8
Cash
$ 8,265,677 CITY MAIN CHKG
$ 185,135 DESERT WILLOW CHKG
$ 22,874 OFFICE COMPLEX TRUST
$ 274,702 RECREATIONAL FAC CHKG
Total Investments and Cash
"U" = Not Rated
City of Palm Desert
Portfolio Holdings
31 December 2004
0.00 1/5/2005 $ 8,265,677 0.00 100.00 $ 8,265,677 N/A N/A
0.00 1/5/2005 $ 185,135 0.00 100.00 $ 185,135 N/A N/A
0.00 1/5/2005 $ 22,874 0.00 100.00 $ 22,874 N/A N/A
0.00 1/5/2005 $ 274,702 0.00 100.00
$ 274,702 N/A N/A
f2 7A4 oen
Dollars in Thousands
Ageing Interval
< 1M
< 2M
< 3M
< 6M
< 1YR
< 2YR
< 3YR
< 4YR
< 5YR
> 5YR
Total:
Palm Desert Redevelopment Agency -- Portfolio Characteristics
31 December 2004
Market Value
$ 72,187
6,043
3,022
$ 81,252
Quality* Market Value
AAA $ 81,799
Unrated ** 60,599
AA
A
A-1 3,027
Total: $ 145,425
Sector Market Value
U.S. Treasury $ 23,071
Money Market Funds 50,689
LAIF 60,599
Federal Agency 8,039
Commercial Paper 3,027
Corporate Bonds -
Total: $ 145,425
Month RDA Yield LAIF Yield Variance
Jan04 1.24 1.53 -0.29
Feb 1.20 1.44 -0.24
Mar 1.20 1.47 -0.28
Apr 1.22 1.45 -0.23
May 1.17 1.43 -0.26
Jun 1.37 1.47 -0.10
Jul 1.53 1.60 -0.08
Aug 1.51 1.67 -0.16
Sep 1.61 1.77 -0.17
Oct 1.73 1.89 -0.16
Nov 1.84 2.00 -0.17
Dec 2.00 2.20 -0.20
* Moody's Credit Ratings
** LAIF
{Portfolio Ageing w/o SLGSsI
100
90
80
70
60
50
40
a° 30
20
10
0
89
7
4
0 0 0 0 0
< 1 M < 2M < 3M < 6M < 1 YR < 2YR < 3YR < 4YR
Jan04 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Page 5of8
I
Par Value
Issuer
Commercial Paper -- Discount
$ 3,039,000 GENERAL ELECTRIC
$ 3,039,000
U.S. Treasury --
$ 23,107,000
$ 23,107,000
Federal Agency
$ 1,983,000
$ 1,983,000
Federal Agency
$ 3,040,000
$ 3,040,000
6,080,000
Subtotal
Coupon
UNITED STATES TREASURY 1.63 3/31/2005 $ 23,093,802 1.86 99.84
Subtotal
Palm Desert Redevelopment Agency
Portfolio Holdings
31 December 2004
Market
Coupon I Maturity I Cost I YTM I Price I Value
1.73 3/1/2005 $ 2,999,569 1.78 99.60
$ 2,999,569 1.78
-- Coupon
FED HOME LOAN MORTGAGE 1.88 1/15/2005 $ 1,983,133 1.70 99.97 $ 1,982,380 Aaa AAA
Subtotal Q 1,983,133 1.70
$ 23,093,802 1.86
Ratings
Moody's, S & P
3,026,743 P-1 A-1+
$ 3,026,743
23,070,895
23,070,895
Aaa AAA
-- Discount
FED NATIONAL MTG ASSOC 1.75
FED NATIONAL MTG ASSOC 1.71
Subtotal
$ 1,982,380
3/4/2005 $ 2,999,509 1.80 99.61 $ 3,028,144
3/1/2005 $ 3,001,012 1.75 99.63 $ 3,028,752 Aaa AAA
6,000,521 1.70
LGIP
$ 40,000,000
$ 5,697,875
$ 5,066,620
$ 9,834,304
$ 60,598,799
LGIP
$ 21,030,500
I $ 21,030,500
Pooled Funds -- A
$ 29,658,770
$ 29,658,770
Total Investments
$ 145,497,069
Cash
$ 2,117,262
$ 319,440
$ 2,436,702
L.A.I.F.
L.A.I.F. (HOUSING)
L.A.I.F. BOND PROCEEDS
L.A.I.F. BOND PROCEEDS
IM
Subtotal
C.A.M.P.
Subtotal
PRIME PORTFOLIO
Subtotal
HOUSING AUTH CHKG
HOUSING AUTH TRUST
Subtotal
0.00 1/1/2005 $ 40,000,000 2.20 100.00 $
0.00 1/1/2005 $ 5,697,875 2.20 100.00 $
0.00 1/1/2005 $ 5,066,620 2.20 100.00 $
0.00 1/1/2005 $ 9,834,304 2.20 100.00 $
$ 60,598,799 2.20
6,056,896
40,000,000
5,697,875
5,066,620
9,834,304
$ 60,598,799
0.00 1/1/2005 $ 21,030,500 1.94 100.00 $ 21,030,500
21,030,500 1.94
21,030,500
Aaa MA
U
U
U
U
U
U
U
U
U AAA
0.00 1/1/2005 $ 29,658,770 1.81 100.00 $ 29,658,770 Aaa AAA
$ 29,658,770 1.81
$ 145,365,094 2.00
29,658,770
$ 145,424,984
0.00 1/1/2005 $ 2,117,262 0.00 100.00 $ 2,117,262
0.00 1/1/2005 $ 319,440 0.00 100.00 $ 319,440
2,436,702
$ 2,436,702
N/A N/A
N/A N/A
1
I
"U" = Unrated
Page 6 of 8
LPar Value
Total Investments and Cash
$ 147,933,771
Palm Desert Redevelopment Agency
Portfolio Holdings
31 December 2004
Issuer I Coupon I Maturity I Cost I YTM
$ 147,801,796
Market
Price I Value
$ 147,861,686
Ratings
Moody's' S & P
"U" = Unrated Page 7 of 8
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert ("City") and the Palm Desert Redevelopment Agency ("RDA") are
governed by federal, state, and local law. The City Treasurer's "Statement of Investment Policy" is more restrictive than the
California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the
Statement of Investment Policy annually.
For the month ended 31 December 2004, the City and the RDA investment portfolios were in compliance with all applicable
federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority).
Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities
are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances.
Respectfully submitted on 26 January 2005,
�auLS Gi'n C. c.,+'t r
City Treasurer
CA Govt
Code Investment Category
53601(a)
53601(b)
53601(c)
53601(d)
53601(e)
53601(f)
53601(g)
5360f(h)
53601(i)'
53601(i)
53601(i)'"
53601-(k)`
53601(1)
Palm Desert Bonds
SUMMARY OF AUTHORIZED INVESTMENTS
California Government Code 1
City Investment Policy
Maximum Maximum Quality Maximum Maximum Quality % of City % of RDA
Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio
U.S. Treasuries, . ,u
CA State Debt
CA Local Agency Debt
reaerai Agencies
5 Years
5 Years
5 Years
No Limit
No Limit
No Limit
Not Authorized (1)
5 Years No Limit
Bankers`s Acceptances'
CommercialPaper
Negotiable CDs
rcepos
Reverse Repos
Medium -Term Notes,.,
Mutual Funds`
Trust Indenture Debt
53601(m) Secured B
5 Years
5 Years
180 Days
270 Days
b Years
1 Year
92 Days
5 Years
90 Days
No Limit
No Limit
40%
25%
30%0
No Limit
20%
30%
20%
A-1+ or P-1
A
AAA & Aaa
5 Years
180 Days
270 Days
5 Years
30 Days
5 Years
30%
40%
25%
30%
20%
Not Authorized
Not Authorized
6%
A-1 & P-1
A-1+ or P-1
AA- or Aa3
AAA&Aaa
Not Authorized
0.0%, 1 15 9%`
6.0%,
2.6%"
30°/ A 12.5%
90 Days 20% (2)
5.5%
2 1°/
0.0%
AAA & Aaa j 9.0% 20.4%''
Not Authorized
...
... �.
N
53601(k)
Local Government
Investment Pools
90 Days
20%
AAA & Aaa
or Advisor ,
90 Days
20% (2) I
5 Years
Securities
LAIF
o H (issuer
No Limit
AA (Security)
of Authorized
AAA &Aaal
or Advisor
Not Authorized
9.0%
I No Limit
(1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council.
(2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds.
14.5%0_:
I 34.5%
73.5% 100.0%
41.7%
* Certified California Municipal Treasurer
Page 8 of 8