HomeMy WebLinkAboutInvestment Reports - November & December 2006 ���'� CITY OF PALM DESERT
� �
FINANCE DEPARTMENT
.
INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: NIAMH ORTEGA, RECORDING SECRETARY\�
DATE: JANUARY 25, 2007
SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS
Please find attached the Compliance Analysis and Investment Reports for November
and December 2006 which were presented and approved at the January meeting of the
Audit, Investment and Finance Committee. 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
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Attachment (as noted) !`��v�--�.LLL�_ BY RDA
ON a` ��07
VERIFIED BY ��'�r�l
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CITY CO'UNC;�:L ACTI��=DENIED _________ Original on �ile with City Clerk's Office
APPROVEDR OTHER
RECEIVED� "
NlgSTING DATE - �"D
AYES. �
NOEs: Non�-
ABSENT' N
ABSTAIN: I�l orrl e,
VERIFIED BY: ClQrk' s Office
Original on File wit City
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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 Markets Committee("FOMC") met on December 12, and left the Federal Funds Rate unchanged at 5.25
percent. The FOMC noted that economic growth had slowed over the course of the year, due partly to a significant downturn
in the housing market. The FOMC predicted that the economy would expand at a moderate pace in 2007, despite recent,
mixed indicators. The FOMC was still concerned about inflation risk, however. The futures market has assigned a 50 percent
chance that the Federal Funds Rate will be cut from 5.25 percent to 5.00 percent at the May 2007 FOMC meeting. The next
FOMC meeting will be on January 30-31.
At this point, the major brake on the economy is real estate. The inventory of homes for sale is currently at a 43-year high.
The greatest number of unsold homes are in the states of California, Arizona, Nevada, Texas, Florida, and Georgia. Deep
price concessions are expected in the first and second quarters of 2007. Consequently, the U.S. housing recession is more
severe than initially thought, and is expected to affect consumer spending in 2007. Merrill Lynch is lowering its 2007 Gross
Domestic Product("GDP")forecast from 1.9 percent to 1.7 percent due to the housing situation. Merrill believes that inflation
• will ease during 2007, allowing the FOMC to cut the Federal Funds Rate, starting in March 2007. Merrill is predicting that the
Federal Funds Rate will be at 4.0 percent by year-end.
,�auLs ��l'�aori, c.c.M.r
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
NOV-06 OCT-06 SEP-06 AUG-06 JUL-06 JUN-06
CITY
Month-End Book Value"" $ 159,790 $ 157,403 $ 162,442 $ 169,367 $ 170,941 $ 173,272
Month-End Market Value"' $ 159,912 $ 157,328 $ 162,291 $ 169,096 $ 170,368 $ 172,365
Paper Gain(Loss) $ 122 $ (75) $ (151) $ (271) $ (573) $ (907)
Prior Year Book Variance $ 12,880 $ 8,748 $ 13,361 $ 15,822 $ 19,765 $ 23,199
Interest Eamings $ 635 $ 657 $ 662 $ 678 $ 666 $ 596
Yield-To-Maturity 5.01% 4.99% 4.96% 4.92% 4.86% 4.72%
Weighted Maturity(Days) 514 517 449 443 444 354
Effective Duration 0.80 0.83 0.70 0.72 0.73 0.54
RDA
Month-End Book Value'*' $ 115,137 $ 116,220 $ 127,042 $ 141,601 $ 147,694 $ 144,460
Month-End Market Value"' $ 115,388 $ 116,302 $ 127,023 $ 141,444 $ 147,222 $ 143,611
Paper Gain(Loss) $ 251 $ 82 $ (19) $ (157) $ (472) $ (849)
Prior Year Book Variance $ (6,074) $ (7,023) $ 1,024 $ 2,120 $ 3,726 $ (1,973)
Interest Eamings $ 466 $ 489 $ 530 $ 570 $ 587 $ 552
Yield-To-Maturity 4.95% 4.95% 4.94% 4.85% 4.82% 4.69%
Weighted Maturity(Days) 644 638 585 544 522 424
Effective Duration 1.11 1.14 1.09 0.99 0.99 0.78
*** Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
30 November 2006
Dollars in Thousands
-------._.. ..
As�ein�Interval Market Value General Fund Ageingl �
< 1 M $ 38,785
<2M -
<3M - 100
<6M 5,823 ^ gp
�
< 1YR 14,378 0 60
<2YR 16,878 •-
< 3YR 18,926 � qp 36
<4YR 9,ggg a 20 13 16 18
9
<5YR 2,p77 0 0 0 5 2 0
>5YR " < 1 M <2M <3M <6M < < < < < >
Total: S 106,866 1YR 2YR 3YR 4YR 5YR 5YR
Credit Quality �
Ratins�s' Market Value
AAA $ 86,484 56%
AA 5,074 B
A 11,962 �o�o
Unrated" 39,463 �
B 10,133 Unrated"` 3%
Total: S 153,116 Zso�a A
8%
Sector Market Value Asset Allocation RDA Loan
MMFs $ 38,748 21%
LAIF 6,677 �`�F MTNs
a
RDA Loan 32,785 ° 23%
MTNs 35,255
Agencies 39,651 MMFs
CP - 25%
Total: S 153,116 Agencies
27%
Month Citv Yield LAIF Yfeld Varfance Performance
Dec05 3.95 3.81 0.14
Jan06 4.06 3.96 0.10
Feb 4.31 4.04 0.27 4 8
Mar 4.38 4.14 0.23
Apr 4.47 4.30 0.17 � 4 2
May 4.62 4.56 0.05 �
Jun 4.72 4.70 0.02 } 3.6
Jul 4.86 4.85 0.01
Aug 4.92 4.95 -0.02 3.0
Sep 4.96 5.02 -0.07 Dec09an06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Oct 4.99 5.10 -0.11
Nov 5.01 5.13 -0.12 ■LAIF Yie:ld ■City vie�d
' Standard and Poors
'" LAIF,and City Loan to RDA Page 2 of 8
City of Palm Desert
Portfolio Holdings
30 November 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S�P
Medium-Term Notes
$ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 2,992,364 5.08 98.81 $ 2,987,153 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,010,292 3.64 98.94 $ 2,968,197 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,971,709 5.01 101.91 $ 2,975,859 Aa2 AA-
$ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,020,602 5.75 100.21 $ 3,006,330 B1 B
$ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,517,168 5.75 100.21 $ 2,505,275 B1 B
$ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,660,476 5.10 100.21 $ 4,621,731 61 B
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,951,771 4.99 97.51 $ 1,950,130 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,982,405 5.63 99.74 $ 2,029,670 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,971,078 5.65 106.78 $ 2,019,174 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,033,643 5.67 104.31 $ 2,086,272 Aaa AAA
$ 3,000,000 GOLDMAN SACHS 7.20 3/1/07 $ 3,026,514 3.50 100.49 $ 3,014,619 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 2,991,331 5.02 97.16 $ 2,992,420 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,095,100 4.93 104.90 $ 2,097,994 Aa2 AA
$ 35,061,000 Subtotal S 35,224,453 5.00 5 35,254,825
Federal Agencies-Coupon
$ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,998,136 3.79 99.00 $ 2,970,000 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,962,436 5.59 99.03 $ 2,970,938 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,974,968 4.87 99.91 $ 1,978,144 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,987,894 5.40 99.72 $ 2,991,563 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,000,260 4.87 98.00 $ 2,008,020 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 2,992,535 5.02 98.91 $ 2,996,859 Aaa AAA
$ 2,035,000 FED HOME LOAN MTG CORP 2.50 12/4/06 $ 2,034,781 3.84 99.72 $ 2,029,277 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,002,902 4.87 98.84 $ 2,009,493 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,959,470 4.88 98.40 $ 1,967,918 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,994,292 5.06 99.91 $ 1,998,110 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,968,729 5.47 98.09 $ 2,022,693 Aaa AAA
$ 2,786,000 FED NATIONAL MTG ASSOC 7.13 3/15/07 $ 2,813,600 3.55 100.53 $ 2,800,801 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,987,566 3.63 98.53 $ 2,955,938 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,986,467 4.88 99.66 $ 1,993,125 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,916,079 5.47 98.41 $ 1,968,125 Aaa AAA
a 35,975,000 Subtotal S 35,580,114 4.70 S 35,661,003
Federal Agencies-Callable
$ 2,000,000 FED HOME LOAN BANK 420 7/18/08 $ 1,979,362 4.88 99.06 $ 1,981,250 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,569 5.06 100.42 $ 2,008,364 Aaa AAA
a 4,000,000 Subtotal S 3,978,930 4.97 a 3,989,614
Local Government Investment Pool
$ 6,677,499 L.A.I.F. 0.00 12/1/06 $ 6,677,499 5.13 100.00 $ 6,677,499 U U
s 6,6T7,499 Subtotal $ 6,877,499 5.13 S 6,677,499
"U"=Unrated Page 3 of 8
City of Palm Desert
Portfolio Holdings
30 November 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P
Local Government investment Pool
$ 30,126,406 C.A.M.P. 0.00 12/1/06 $ 30,126,406 5.19 100.00 $ 30,126,406 U AAA
$ 539,970 C.A.M.P.(HOUSING) 0.00 12/1/06 $ 539,970 5.19 100.00 $ 539,970 U AAA
$ 30,666,377 Subtotal S 30,666,3T7 5.19 $ 30,666,377
Money Market Fund
$ 8,081,499 WF ADVANTAGE GOVT MMF 0.00 12/1/06 $ 8,081,499 5.14 100.00 $ 8,081,499 Aaa AAA
$ 8,081,499 Subtotal S 8,081,499 5.14 S 8,081,499
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 12/1/36 $ 32,785,480 5.13 100.00 $ 32,785,480 U U
E 32,785,480 Subtotal S 32,785,480 5.13 $ 32,785,480
Total lnvestments
S 153,246,854 $ 152,994,351 5.01 a 153,116,296
Cash
$ 5,526,507 CITY MAIN CHKING 0.00 12/1/06 $ 5,526,507 0.00 100.00 $ 5,526,507 U U
$ 627,221 MONTEREY 170 CHKG 0.00 12/1/06 $ 627,221 0.00 100.00 $ 627,221 U U
$ 465,238 DESERT WILLOW CHKG 0.00 12l1/06 $ 465,238 0.00 100.00 $ 465,238 U U
$ 176,560 RECREATIONAL FAC CHKG 0.00 12/1/06 $ 176,560 0.00 100.00 $ 176,560 U U
S 6,795,526 Subtotal a 6,795,526 S 6,795,526
Total Investments and Cash
S 160,042,380 S 159,789,877 � 159,911,821
%of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA FINANCE 0.00%
BANK ONE 1.87%
BANK OF AMERICA 1.86%
FORD MOTOR CREDIT CORP 5.31%
GENERAL ELECTRIC 6.64%
GOLDMAN SACHS 1.30%
WACHOVIA 1.89%
WAL-MART 1.87%
"U"= Unrated Page 4 of 8
Palm Desert Redevelopment Agency-- Portfolio Characteristics
- 30 November 2006
Dollars in Thousands
-----....---. .....__ . .._._. _..._......_ _.
As�eins�Interval Market Value portfolio Ageing w/o SLGSsI
< 1 M $ 26,686 �
<2M 2,997
<3M _ 100
90
<6M 5,949 �. 80
< 1 YR 5,gg2 0 70
<2YR 19,695 ' � 50
<3YR 18,778 � 40 29 21 20
30
<4YR 8,134 , a ;0 3 � 6 6 9 4 0
<5YR 4,000 �
>5YR - <1 M <2M <3M <6M < < < < < >
Total: $ 92,131 1YR 2YR 3YR 4YR 5YR 5YR
uali * Market Yalue Credit Quality qqq
AAA $ 88,327 76%
AA 1,964
A 2,029 g
Unrated*' 19,412 3% �
B 3,001 q 2%
Unrated"'
Total: S 114,733 , �70�, 2%
Sector Market Value
IAsset Allocation MMFs
LAIF $ 19,412 26%
MMFs 29,709
Agencies 58,619 LAIF Agencies
MTNs 6,993 ! �7% 51%
CP -
Treasuries - MTNs
Total: S 114,733 go�,
Month RDA Yleld LAIF Yield Varfance Performance
Dec05 3.82 3.81 0.01
Jan06 3.99 3.96 0.03
Feb 4.26 4.04 0.22 4 8
Mar 4.38 4.14 0.24
Apr 4.50 4.30 0.20 � 4 2
May 4.60 4.56 0.04 m
Jun 4.69 4.70 -0.01 � 3.6
Jul 4.82 4.85 -0.03
Aug 4.85 4.95 -0.10 3.0
Sep 4.94 5.02 -0.09 DecO�lan06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Oct 4.95 5.10 -0.15
Nov 4.95 5.13 -0.18 ■LAIF Yieid ■RDA Yield
� "' Standard and Poors
"' LAIF Page 5 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
30 November 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moodys S8P
Medium-Term Notes
$ 3,000,000 FORD MOTOR CREDIT CORP 6.50 1/25/07 $ 3,006,977 4.85 100.03 $ 3,000,876 B1 B
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,029,393 5.00 101.44 $ 2,028,806 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,969,537 4.96 98.18 $ 1,963,514 Aa1 AA-
S 7,000,000 Subtotal 5 7,005,907 4.93 3 6,993,196
Federal Agency-Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,981,566 3.43 98.13 $ 2,943,750 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,080,898 4.88 104.45 $ 2,088,936 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,955,607 4.89 97.84 $ 1,956,875 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3109 $ 1,994,144 4.87 100.13 $ 2,002,500 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,997,832 3.82 98.72 $ 2,961,563 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,929,695 4.79 99.06 $ 3,932,781 Aaa AAA
. $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,929,695 4.79 99.06 $ 3,932,78i Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,443,654 5.59 99.03 $ 4,456,406 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,926,994 4.88 96.56 $ 1,931,250 Aaa AAA
' $ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,983,858 4.84 99.72 $ 3,988,750 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,956,004 4.89 97.75 $ 1,959,888 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,950,618 5.49 100.59 $ 2,011,875 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,949,959 5.50 100.59 $ 2,011,875 Aaa AAA
$ 3,000,000 FED HOME LOAN MTG CORP 4.88 3/15/07 $ 3,012,376 3.38 99.91 $ 2,997,188 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,000,092 4.87 98.00 $ 2,008,020 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,997,910 5.07 99.98 $ 1,999,668 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,089,058 5.54 107.41 $ 2,148,125 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,900,575 5.54 107.41 $ 4,010,549 Aaa AAA
$ 2,973,000 FED NATIONAL MTG ASSOC 3.63 3/15/07 $ 2,973,601 3.95 99.53 $ 2,959,064 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,336,985 4.89 104.81 $ 4,354,959 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,963,817 4.87 98.09 $ 1,961,875 Aaa AAA
S 58,356,000 Subtotal S 58,354,937 4.78 a 58,618,678
Local Government Investment Pool
$ 978,850 L.A.I.F. 0.00 12/1/06 $ 978,850 5.13 100.00 $ 978,850 U U
$ 5,483,553 L.A.I.F. (HOUSING AUTH) 0.00 12/1/06 $ 5,483,553 5.13 100.00 $ 5,483,553 U U
$ 12,950,013 L.A.I.F. BOND PROCEEDS 0.00 12/1106 $ 12,950,013 5.13 100.00 $ 12,950,013 U U
5 19,412,416 Subtotal S 19,412,418 5.13 S 19,412,416
Local Government Investment Pool
$ 25,170,828 C.A.M.P. 0.00 12/1/06 $ 25,170,828 5.19 100.00 $ 25,170,828 U AAA
a 25,170,828 Subtotal S 25,170,828 5.19 E 25,170,828
"U"=Unrated Page 6 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
30 November 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moodys S8P
Money Market Fund
$ 4,538,151 WF ADVANTAGE GOVT MMF 0.00 12/1/06 $ 4,538,151 5.14 100.00 $ 4,538,151 Aaa AAA
S 4,538,151 Subtotal $ 4,538,151 5.14 a 4,538,151
Total Investments
$ 114,477,395 a 114,482,239 4.95 E 114,733,270
Cash
$ 334,808 HOUSING AUTH CHKG 0.00 12/1/06 $ 334,808 0.00 100.00 $ 334,808 U U
$ 320,380 HOUSING AUTH TRUST 0.00 12/1/06 $ 320,380 0.00 100.00 $ 320,380 U U
E 655,188 Subtotal E 655,188 S 655,188
• Total Investments and Cash
$ 115,132,583 5 115,137,427 $ 115,388,457
%of Portfolio
Corporate Issuers (Market Value)
FORD MOTOR CREDIT CORP 2.60%
FIRST UNION NATIONAL BANK 1.76%
WELLS FARGO BANK 1.70%
"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
govemed by federal, state, and local law. The City Treasurer's"Statement of Investment Policy"is more restrictive than the
Califomia Govemment 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 2006, 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 Govemment 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 December 2006,
,�auLS. �u�i�, C.C.�1.T. �
City Treasurer
SUMMARY OF AUTHORI2ED INVESTMENTS
Califomia Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA
Code Investment Category Maturity Limit S&P/Mdys Maturity Limit SB�PlMdys Portfolio Portfolio
53601 a Palm Desert Bonds 5 Years No Limit Nof Authorized(1
53601 b U.S.Treasuries 5 Years No Limit 5 Years No Lim1t 0.0% 0.0%
53601 c CA State Debt 5 Years No Limit Not Authorized
53601 d CA Local A enc Debt 5 Years No Limit Not Authorized
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 25.9% 51.0%
53601 Bankers's Acce tances 180 Da s 40% 180 Da s 40% A-1 8�P-1 - -
53601 Commercial Pa er 270 Da s 25% A-1+or P-1 270 Da s 25% A-1+or P-1 0.0% 0.0%
53601 h Ne otiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - -
53601 i Re os 1 Year No Limit 30 Da s 20% AAA&Aaa - -
53601 i Reverse Re os 92 Da s 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 23.0°h 6.1%
53601 k Mutual Funds 90 Da s 20% AAA&Aaa 90 Da s 20%(2) AM&Aaa 5.3°� 4.0%
53601 I Trust Indenture Debt Not Authorized
53601 m Secured Bank De osits 5 Years No Limit Nof Authorized
53601(k) Local Govemment AAA&Aaa AAA 8 Aaa
Investment Pools 90 Da s 20°/a or Advisor 90 Da s 20% (2) or Advisor 20.0% 22.0°�
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized
Securities AA Securi
LAIF No Limit No Limit 4.4°k 17.0%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 78.6% 100.0%
2) Maximum limit for mutual funds and local ovemment investment ools, excludin bond roceeds.
* Certified California Municipal Treasurer Page 8 of 8
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Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The next meeting of the Federal Open Market Committee("FOMC")will be on 31 January.
Some of the key issues that will drive investment management in 2007 are:
1) Has the FOMC finished raising short-term interest rates?
2) Is U.S. economic growth accelerating, or has it already reached the peak of the current economic cycle?
3) What effect will the new Congress have on the financial markets?
4) Will the slowing housing market depress the rest of the U.S. economy?
5) Will risk premiums on assets remain low, or will they begin to rise in 2007?
�c�Ls ��l'�o�, c.c.,y r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
DEC-06 NOV-06 OCT-06 SEP-06 AUG-06 JUL-06
CITY
Month-End Book Value'** $ 159,050 $ 159,790 $ 157,403 $ 162,442 $ 169,367 $ 170,941
Month-End Market Value"` $ 158,939 $ 159,912 $ 157,328 $ 162,291 $ 169,096 $ 170,368
Paper Gain(Loss) $ (111) $ 122 $ (75) $ (151) $ (271) $ (573)
Prior Year Book Variance $ 15,863 $ 12,880 $ 8,748 $ 13,361 $ 15,822 $ 19,765
Interest Earnings $ 650 $ 635 $ 657 $ 662 $ 678 $ 666
Yield-To-Maturity 5.03% 5.01% 4.99% 4.96% 4.92% 4.86%
Weighted Maturity(Days) 495 514 517 449 443 444
Effective Duration 0.75 0.80 0.83 0.70 0.72 0.73
RDA
Month-End Book Value"*' $ 111,068 $ 115,137 $ 116,220 $ 127,042 $ 141,601 $ 147,694
Month-End Market Value'*" $ 111,060 $ 115,388 $ 116,302 $ 127,023 $ 141,444 $ 147,222
Paper Gain(Loss) $ (8) $ 251 $ 82 $ (19) $ (157) $ (472)
Prior Year Book Variance $ (14,327) $ (6,074) $ (7,023) $ 1,024 $ 2,120 $ 3,726
Interest Eamings $ 465 $ 466 $ 489 $ 530 $ 570 $ 587
Yield-To-Maturity 4.95% 4.95% 4.95% 4.94% 4.85% 4.82%
Weighted Maturity(Days) 668 644 638 585 544 522
Effective Duration 1.10 1.11 1.14 1.09 0.99 0.99
"' Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
31 December 2006
__.... ---._. ...___..... ._....__ .._... . ...__.
As�eins�Interval Market Value General Fund Ageingl
< 1 M $ 47,810
<2M 3,008
<3M 2,7g6 100
<6M 5,504 � gp
< 1YR 8,906 0 60
<2YR 18,834 '0 41
<3YR 18,913 0 40
<4YR 7,978 a 20 3 2 5 8 16 16 �
<5YR 2,069 2 0
0
>5YR " <1 M <2M <3M <6M < < < < < >
Total: S 115r$�8 l 1 YR 2YR 3YR 4YR 5YR 5YR
Ratins�s* Market Value Credit Quality �
AAA $ 89,925 58%
AA 5,045 B
A 11,950 go�o
Unrated" 39,463
B 10,120 '�
..
Total: S 156,503 nrated A 3%
25/o
8%
Sector Market Value �Asset Allocation RDA Loan
MMFs $ 44,418 21%
L41F
LAIF 6,677 4%
RDA Loan 32,785 MTNs
MTNs 35,141 22%
Agencies 37,482 MMFs
C P - 29%
Total: S 156,503 Agencies
24%
�
Month Ci Yield LAIF Yleld Varfance Performance
Jan06 4.06 3.96 0.10
Feb 4.31 4.04 0.27
Mar 4.38 4.14 0.23
Apr 4.47 4.30 0.17 4•8
May 4.62 4.56 0.05 '
Jun 4.72 4.70 0.02 �
� 4.2
Jul 4.86 4.85 0.01
Aug 4.92 4.95 -0.02
Sep 4.96 5.02 -0.07 3.6
Oct 4.99 5.10 -0.11 Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Oec
Nov 5.01 5.13 -0.12
Dec 5.03 5.13 -0.09 ■IA�F vie�d ■City Yie�ci
� ' Standard and Poors
" LAIF,and City Loan to RDA Page 2 of 8
City of Palm Desert
Portfolio Holdings
31 December 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P
Medium-Term Notes
$ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 2,994,362 5.08 98.70 $ 2,983,565 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,009,148 3.64 99.19 $ 2,975,610 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,969,756 5.01 101.40 $ 2,961,000 Aa2 AA-
$ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,017,416 5.75 100.08 $ 3,002,379 61 B
$ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,514,513 5.75 100.08 $ 2,501,983 B1 B
$ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,652,979 5.10 100.08 $ 4,615,657 B1 B
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,953,918 4.99 97.29 $ 1,945,862 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,983,532 5.63 98.95 $ 2,013,592 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,969,391 5.65 105.73 $ 1,999,311 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,032,980 5.67 103.37 $ 2,067,404 Aaa AAA
$ 3,000,000 GOLDMAN SACHS 7.20 3/1/07 $ 3,017,876 3.50 100.28 $ 3,008,499 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 2,994,673 5.02 96.82 $ 2,982,192 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,092,156 4.93 104.18 $ 2,083,652 Aa2 AA
a 35,061,000 Subtotal S 35,202,499 5.00 E 35,140,704
Federal Agencfes-Coupon i
$ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,998,356 3.79 99.06 $ 2,971,875 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,963,563 5.59 98.47 $ 2,954,063 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/OS $ 1,975,175 4.87 99.47 $ 1,969,481 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,988,460 5.40 99.28 $ 2,978,438 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,001,597 4.87 97.41 $ 1,995,854 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 2,994,984 5.02 98.66 $ 2,989,284 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,003,858 4.87 98.31 $ 1,998,693 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,960,609 4.88 97.80 $ 1,955,918 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,994,539 5.06 99.68 $ 1,993,690 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,970,880 5.47 97.44 $ 2,009,161 Aaa AAA
$ 2,786,000 FED NATIONAL MTG ASSOC 7.13 3/15/07 $ 2,805,638 3.55 100.38 $ 2,796,448 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,989,034 3.63 98.63 $ 2,958,750 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,986,855 4.88 99.09 $ 1,981,875 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,917,966 5.47 97.78 $ 1,955,625 Aaa AAA
a 33,940,000 Subtotal S 33,551,515 4.76 5 33,509,154
Federal Agencies-Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,980,416 4.88 98.69 $ 1,973,750 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,590 5.06 99.97 $ 1,999,494 Aaa AAA
S 4,000,000 Subtotal E 3,880,006 4.97 S 3,973,244
Local Government Investment Pool
$ 6,677,499 L.A.I.F. 0.00 1/1/07 $ 6,677,499 5.13 100.00 $ 6,677,499 U U
E 6,677,499 Subtotal S 6,6T7,499 5.13 S 6,677,499
"U"=Unrated Page 3 of 8
City of Palm Desert
Portfolio Holdings
31 December 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Local Government Investment Pool
$ 542,357 C.A.M.P. 0.00 1/1/07 $ 542,357 5.20 100.00 $ 542,357 U AAA
$ 35,759,645 C.A.M.P. 0.00 1/1/07 $ 35,759,645 5.20 100.00 $ 35,759,645 U AAA
S 36,302,002 Subtotal E 36,302,002 5.20 5 36,302,002
Money Market Fund
$ 8,115,583 WF ADVANTAGE GOVT MMF 0.00 1/1/07 $ 8,115,583 5.15 100.00 $ 8,115,583 Aaa AAA
S 8,115,583 Subtotal S 8,115,583 5.15 S 8,115,583
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 1/1/07 $ 32,785,480 5.13 100.00 $ 32,785,480 U U
5 32,785,480 Subtotal 5 32,785,480 5.13 a 32,785,480
Total Investments
' 3 156,881,564 3 156,614,584 5.03 E 156,503,667
Cash
$ 1,453,390 CITY MAIN CHKG 0.00 1/1/07 $ 1,453,390 0.00 100.00 $ 1,453,390 U U
$ 271,750 DESERT WILLOW CHKG 0.00 1/1/07 $ 271,750 0.00 100.00 $ 271,750 U U
$ 627,322 MONTEREY 170 CHKG 0.00 1/1/07 $ 627,322 0.00 100.00 $ 627,322 U U
$ 83,099 RECREATIONAL FAC CHKG 0.00 1/1/07 $ 83,099 0.00 100.00 $ 83,099 U U
S 2,435,561 Subtotal S 2,435,561 E 2,435,561
Total Investments and Cash
S 159,317,124 5 159,050,145 S 158,939,227
%of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA FINANCE 1.88%
BANK ONE 1.87%
BANK OF AMERIGA 1.86%
FORD MOTOR CREDIT CORP 6.37%
GENERAL ELECTRIC 5.05%
GOLDMAN SACHS 1.89%
WACHOVIA 1.88%
WAL-MART 1.31%
"U"= Unrated Page 4 of 8
Palm Desert Redevelopment Agency--Portfolio Characteristics
� 31 December 2006
Dollars in Thousands
__ _... ._ ..__---.....-...._.__ __. ._ _
As�ein�Interval Market Value i Portfolfo Ageing wlo SLGSsI
< 1 M $ 26,939
<2M ' �
<3M 5,692 100
i 90
�gM - 80
< 1 YR 5,909 � � 70
a 60
<2YR 21,692 '0 50
<3YR 18,689 0 30 30 24 21
<4YR 6,109 � a 2� 6 7 � 4 �
<5YR 3�ggp 10 0 0
0
>5YR ' <1 M <2M <3M <6M < < < < < >
Total: S 89,020 I 1YR 2YR 3YR 4YR 5YR 5YR
� --'
ualit ' Market Value Credit Quality
qqq $ 85,344 �
qq 1,959 77%
q 2,021
Unrated*' 18,080 B
0
B 3o A
3,001 Unrated" � 20�0
Total: S 110,405 �g% 2/o
Sector Market Value Asset Allocation LAIF
LAIF $ 18,080 16%
MMFs 26,974
58,370 Agencies
Agencies MMFs 54%
MTNs 6�981 24%
CP '
Treasuries - MTNs
Total: S 110,405 6%
Month RDA Yfeld LAIF Yfeld Variance Performance
Jan06 3.99 3.96 0.03
Feb 4.26 4.04 0.22 5.3
Mar 4.38 4.14 0.24
Apr 4.50 4.30 0.20 0 4.8
May 4.60 4.56 0.04 --
Jun 4.69 4.70 -0.01 �
Jul 4.82 4.85 -0.03 } 4.3
Aug 4.85 4.95 -0.10
gep 4.94 5.02 -0.09 3.8
Oct 4.95 5.10 -0.15 Jan06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nov 4.95 5.13 -�•�s ��AIFYield ■RDAYield
Dec 4.95 5.13 -0.18
* Standard and Poors
'* LAIF Page 5 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 December 2006
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Medium-Term Notes
$ 3,000,000 FORD MOTOR CREDIT CORP 6.50 1/25/07 $ 3,003,101 4.85 100.02 $ 3,000,501 61 8
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,028,168 5.00 101.05 $ 2,020,918 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,971,026 4.96 97.96 $ 1,959,162 Aa1 AA-
S 7,000,000 Subtotal S 7,002,294 4.93 a 6,980,581
Federal Agency-Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,983,500 3.43 98.22 $ 2,946,563 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,078,532 4.88 103.70 $ 2,074,090 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,957,557 4.89 97.53 $ 1,950,625 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,994,326 4.87 99.53 $ 1,990,625 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,998,062 3.82 98.75 $ 2,962,500 Aaa AAA
. $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,931,589 4.79 98.69 $ 3,917,894 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,931,581 4.79 98.69 $ 3,917,894 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,445,345 5.59 98.47 $ 4,431,094 Aaa AAA
• $ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,929,075 4.88 96.06 $ 1,921,250 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,984,614 4.84 99.28 $ 3,971,250' Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,957,546 4.89 97.25 $ 1,949,863 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,951,580 5.49 99.75 $ 1,995,000 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,950,934 5.50 99.75 $ 1,995,000 Aaa AAA
$ 3,000,000 FED HOME LOAN MTG CORP 4.88 3/15/07 $ 3,008,806 3.38 99.94 $ 2,998,125 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,001,433 4.87 97.41 $ 1,995,854 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,016 5.07 99.89 $ 1,997,818 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,087,099 5.54 106.53 $ 2,130,625 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,896,912 5.54 106.53 $ 3,977,877 Aaa AAA
$ 2,973,000 FED NATIONAL MTG ASSOC 3.63 3/15/07 $ 2,973,428 3.95 99.69 $ 2,963,709 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,331,547 4.89 104.13 $ 4,326,394 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,965,354 4.87 97.81 $ 1,956,250 Aaa AAA
3 58,356,000 Subtotal S 58,356,828 4.78 S 58,370,298
Local Government Investment Pool
$ 5,483,553 L.A.I.F. 0.00 1/1/07 $ 5,483,553 5.13 100.00 $ 5,483,553 U U
$ 978,850 L.A.I.F. (HOUSING) 0.00 1/1/07 $ 978,850 5.13 100.00 $ 978,850 U U
$ 11,617,305 L.A.I.F. BOND PROCEEDS 0.00 1/1/07 $ 11,617,305 5.13 100.00 $ 11,617,305 U U
E 18,079,708 Subtotal S 18,079,708 5.13 S 18,079,708
Local Government Investment Pool
$ 21,572,579 C.A.M.P. 0.00 1/1/07 $ 21,572,579 5.20 100.00 $ 21,572,579 U AAA
a 21,572,579 Subtotal S 21,572,579 5.20 S 21,572,579
"U"= Unrated Page 6 of 8
Palm Desert Redevelopment Agency
Portfolio Holdings
31 December 2006
Market Ratings
Par Value Issuer Coupon Maturfty Cost YTM Price Value Moody's S8P
Money Market Fund
$ 5,401,726 WF ADVANTAGE GOVT MMF 0.00 1/1/07 $ 5,401,726 5.13 100.00 $ 5,401,726 Aaa AAA
S 5,401,726 Subtotal S 5,401,726 5.13 E 5,401,726
Total Investments
E 110,410,013 3 110,413,136 4.95 E 110,404,892
Cash
$ 334,808 HOUSING AUTH CHKG 0.00 1/1/07 $ 334,808 0.00 100.00 $ 334,808 U U
$ 320,380 HOUSING AUTH TRUST 0.00 1/1/07 $ 320,380 0.00 100.00 $ 320,380 U U
S 655,188 Subtotal S 655,188 S 655,188
Total Investments and Cash
' S 111,065,201 S 111,068,323 S 111,060,080
%of Portfolio
Corporate Issuers (Market Value)
FORD MOTOR CREDIT CORP 2.70%
FIRST UNION NAT BANK 1.82%
WELLS FARGO BANK 1.76%
"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 Ciry Council review the
Statement of Investment Policy annually.
For the month ended 31 December 2006,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 Ciry 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 Govemment 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 23 January 2007,
,�'auLS. C'i�lrao�� C.C.�>.r �
� City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS ?
Californfa Government Code City Investment PoNcy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA
Code Investment Category 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 U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 0.0%
53601 c CA State Debt 5 Years No Limit Not Authorized
53601 d CA Local A enc Debt 5 Years No Limit Not Aufhorized
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 24.0% 52.9%
53601 Bankers's Acce tances 180 Da s 40% 180 Da 40% A-1 &P-1 - -
53601 Commercial Pa er 270 Da s 25% A-1+or P-1 270 Da s 25% A-1+or P-1 0.0% 0.0%
53601 h Ne otiable CDs 5 Years 30°/a 5 Years 30% AA-or Aa3 - -
53601 i Re os 1 Year No Limit 30 Da s 20% AAA 8�Aaa - -
53601 i Reverse Re os 92 Da s 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 22.5% 6.3%
53601 k Mutual Funds 90 Da s 20% AAA 8�Aaa 90 Da s 20%(2) AAA&Aaa 5.2% 4.9%
53601 I Trust Indenture Debt Not Authorized
53601(m Secured Bank Deposits 5 Years No Limit Nof Authorized
53601(k) Local Govemment AAA&Aaa AAA&Aaa
Investment Pools 90 Da s 20% or Advisor 90 Da s 20% (2) or Advisor 23.2% 19.5%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized
Securities AA Securi
LAIF No Limit No Limit 4.3°k 16.4%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 79.1% 100.0%
2 Maximum limit for mutual funds and local ovemment investment ools,excludin bond roceeds.
' Certified California Municipal Treasurer Page 8 of 8