HomeMy WebLinkAboutInvstmnt Rprt - March 2007 �
' �T� City of Palm Desert ,,,.._.,��
� � City and Redevelopment Agency Portfolios �°` �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
_ March 2007 �
�
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Market Open Committee(FOMC)will meet next on May 9. The probability of a rate cut during the first half of
2007 has declined, reflecting lingering FOMC concerns about inflation. The FOMC changed from a "tightening" bias to a
"neutral" bias at its last meeting due to a slowing economy. The present economic picture is mixed. On one hand, the auto
and housing slumps have deepened, and business spending has weakened. On the other hand, the U.S. economy is
experiencing a late-cycle surge in inflation due to low unemployment, a weakening dollar, and rising global commodity
prices.
The FOMC has little control over global commodity prices since they are being driven by economic growth outside U.S.
borders. Historically, however, a slowing economy usually slows inflation. Merrill Lynch still believes that the FOMC will
initiate a series of rate cuts extending into the first quarter of 2008 as it lowers the Federal Funds Rate to 3.75 percent. It is
thought that the FOMC will begin these cuts at its August 2007 meeting.
The International Monetary Fund has lowered its forecast of U.S. economic growth in 2007 to 2.2 percent. In contrast, global
economic growth is projected to be 4.9 percent in 2007 and 2008. This will be the first time in 40 years that the global
� economy has been able to withstand a slowdown in the U.S. economy.
,��s ���o�, c.c.�r.r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
MAR-07 FEB-07 JAN-07 DEC-06 NOV-06 OCT-06
CITY
Month-End Book Value""" $ 210,992 $ 217,861 $ 237,367 $ 159,050 $ 159,790 $ 157,403
Month-End Market Value*"` $ 211,087 $ 218,014 $ 237,168 $ 158,939 $ 159,912 $ 157,328
Paper Gain (Loss) $ 95 $ 153 $ (199) $ (111) $ 122 $ (75)
Prior Year Book Variance $ 61,048 $ 70,854 $ 89,718 $ 15,863 $ 12,880 $ 8,748
Interest Earnings $ 891 $ 859 $ 853 $ 650 $ 635 $ 657
Yield-To-Maturity 5.13% 5.08% 5.06% 5.03% 5.01% 4.99%
Weighted Maturity(Days) 428 444 402 495 514 517
Effective Duration 0.66 0.69 0.57 0.75 0.80 0.83
RDA
Month-End Book Value""* $ 303,532 $ 308,095 $ 237,367 $ 111,068 $ 115,137 $ 116,220
Month-End Market Value""" $ 303,707 $ 308,331 $ 237,252 $ 111,060 $ 115,388 $ 116,302
Paper Gain(Loss) $ 175 $ 236 $ (115) $ (8) $ 251 $ 82
Prior Year Book Variance $ 154,073 $ 154,443 $ 85,588 $ (14,327) $ (6,074) $ (7,023)
Interest Earnings $ 1,333 $ 1,186 $ 1,013 $ 465 $ 466 $ 489
Yield-To-Maturity 5.11% 5.07% 5.05% 4.95% 4.95% 4.95%
Weighted Maturity(Days) 269 278 302 668 644 638
Effective Duration 0.47 0.56 0.49 1.10 1.11 1.14
'" *"" Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
31 March 2007
Dollars in Thousands
Aaeing Interval Market Value � � � � ��
< 1 M $ 48,132 � General Fund Ageingl
<2M -
<3M 5,501 100 •------. -- -
<6M 8,943 �., 80
< 1YR 9,950 0 60
<2YR 20,817 '0 40 38
<3YR 17,014 0
<4YR 12,060 a 20 O 4 7 $ 16 13 10 3 0
<5YR 4,186 �
> 5YR ' < 1 M <2M <3M <6M < < < < < >
Total: $ 126,603 1YR 2YR 3YR 4YR 5YR 5YR
Credit Quality
Ratinas* Market Value
AAA
qqq $ 171,807 �� B 83%
qq 11,209 '
5%
q 14,888
g 10,113 ' A
7%
Unrated""' 783 AA
Total: $ 208,800 5%
• Sector Market Value '�, 'IAsset Allocation MTNs �
MMF $ 43,610 21% ��
Agencies
Agencies 38,821 I 19% ��,
MTNs 44,263
LGIP 48,537 �'` LGIP
RDA Loan 32,785 23%
LAI F 784 M M F
21%
CP ' RDA Loan I
Total: $ 208,800 16%
Month Citv Yield LAIF Yield Variance �Pertormance '
Apr06 4.47 4.30 0.17 '� ,
May 4.62 4.56 0.05 5.4 ----- '�
Jun 4.72 4.70 0.02 '
Jul 4.86 4.85 0.01 0 5A
Aug 4.92 4.95 -0.02 ' ...- I
Sep 4.96 5.02 -0.07 , d ,
Oct 4.99 5.10 -0.11 r 4.6 ,
Nov 5.01 5.13 -0.12 i
Dec 5.03 5.13 -0.09 4.2
Jan07 5.06 5.16 -0.10 Apr06 May Jun Jul Aug Sep Oct Nov Dec Jan07 Feb Mar
Feb 5.08 5.18 -0.11
Mar 5.13 5.21 -0.08 ��� ��'-l��`` Yk£�4ti ■City Yie_�c��
\ _- --- - -- - -
* Standard and Poors
' ** LAIF, and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
31 March 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 3,023,000 AMERICAN HONDA 4.25 3/11/08 $ 3,000,356 5.08 99.07 $ 2,994,938 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,005,718 3.64 99.46 $ 2,983,887 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,963,894 5.01 101.43 $ 2,961,770 Aa2 AA-
$ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,007,858 5.75 100.01 $ 3,000,444 B1 B
$ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,506,549 5.75 100.01 $ 2,500,370 B1 B
$ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,630,491 5.10 100.01 $ 4,612,683 B1 B
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,960,358 4.99 97.81 $ 1,956,292 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,986,913 5.63 99.48 $ 2,024,320 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,964,330 5.65 105.77 $ 2,000,118 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,030,989 5.67 103.64 $ 2,072,708 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,977,341 5.13 98.89 $ 1,977,756 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,976,308 5.25 98.88 $ 1,977,606 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,004,699 5.02 97.40 $ 2,999,889 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,956,168 5.18 97.68 $ 1,953,502 Aa3 A+
� $ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,083,323 4.93 104.09 $ 2,081,760 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,190,574 5.13 104.69 $ 4,187,708 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,971,727 5.09 98.88 $ 1,977,672 Aa1 AA-
$ 44,061,000 Subtotal $ 44,217,594 5.15 $ 44,263,424
Federal Agencies--Coupon
$ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,999,017 3.79 99.44 $ 2,983,125 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,966,944 5.59 98.94 $ 2,968,125 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,975,794 4.87 99.75 $ 1,975,050 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,990,160 5.40 99.59 $ 2,987,813 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,005,606 4.87 97.91 $ 2,006,099 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,002,330 5.02 99.00 $ 2,999,700 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,006,728 4.87 98.69 $ 2,006,317 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,964,028 4.88 98.26 $ 1,965,204 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,995,282 5.06 99.94 $ 1,998,828 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,977,332 5.47 97.94 $ 2,019,471 Aaa AAA
$ 3,000,000 FED NAT MTG ASSOC 3.00 8/15/07 $ 2,993,440 3.63 99.19 $ 2,975,625 Aaa AAA
$ 2,000,000 FED NAT MTG ASSOC 4.63 10/28/09 $ 1,988,018 4.88 99.47 $ 1,989,375 Aaa AAA
$ 2,000,000 FED NAT MTG ASSOC 4.25 8/15/10 $ 1,923,628 5.47 98.28 $ 1,965,625 Aaa AAA
$ 31,154,000 Subtotal $ 30,788,307 4.87 $ 30,840,357
Federal Agencies--Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,983,581 4.88 99.03 $ 1,980,625 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,652 5.06 100.16 $ 2,003,124 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 99.88 $ 1,997,502 Aaa AAA
$ 2,000,000 FED NAT MTG ASSOC 5.38 2/1/10 $ 2,000,000 5.37 99.97 $ 1,999,375 Aaa AAA
$ 8,000,000 Subtotal $ 7,983,233 5.15 $ 7,980,626
' "U"=Unrated Page 3 of 9
City of Palm Desert
Portfolio Holdings
31 March 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Local Government Investment Pool
$ 783,585 L.A.I.F. 0.00 4/1/07 $ 783,585 5.21 100.00 $ 783,585 U U
$ 783,585 Subtotal $ 783,585 5.21 $ 783,585
Local Government Investment Pool
$ 47,435,092 C.A.M.P. 0.00 4/1/07 $ 47,435,092 5.22 100.00 $ 47,435,092 U AAA
$ 1,101,515 C.A.M.P. (HOUSING) 0.00 4/1/07 $ 1,101,515 5.22 100.00 $ 1,101,515 U AAA
$ 48,536,607 Subtotal $ 48,536,607 5.22 $ 48,536,607
Money Market Fund
$ 43,609,510 WF ADVANTAGE GOVT MMF 0.00 4/1/07 $ 43,609,510 5.14 100.00 $ 43,609,510 Aaa AAA
$ 43,609,510 Subtotal $ 43,609,510 5.14 $ 43,609,510
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 4/1/37 $ 32,785,480 5.21 100.00 $ 32,785,480 U U
$ 32,785,480 Subtotal $ 32,785,480 5.21 $ 32,785,480
• Total Investments
$ 208,930,182 $ 208,704,315 5.13 $ 208,799,588
Cash
$ 109,355 CITY MAIN CHKG 0.00 4/1/07 $ 109,355 0.00 100.00 $ 109,355 U U
$ 1,273,033 DESERT WILLOW CHKG 0.00 4/1/07 $ 1,273,033 0.00 100.00 $ 1,273,033 U U
$ 627,639 MONTEREY 170 CHKG 0.00 4/1/07 $ 627,639 0.00 100.00 $ 627,639 U U
$ 277,184 RECREATIONAL FAC CHKG 0.00 4/1/07 $ 277,184 0.00 100.00 $ 277,184 U U
$ 2,287,211 Subtotal $ 2,287,211 $ 2,287,211
Total Investments and Cash
$ 211,217,392 $ 210,991,526 $ 211,086,799
' "U"= Unrated Page 4 of 9
City of Palm Desert
Portfolio Holdings
. 31 March 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA 1.42%
BANK ONE 1.41%
BANK OF AMERICA 1.40%
FORD MOTOR CREDIT CORP 4.79%
� GENERAL ELECTRIC 3.82%
IBM 0.94%
JP MORGAN CHASE 0.94%
WACHOVIA 2•35°�a
WAL-MART 0.99%
WELLS FARGO BANK 2.92%
' "U"=Unrated Page 5 of 9
Palm Desert Redevelopment Agency-- Portfolio Characteristics
. 31 March 2007
Dollars in Thousands
_� . ...
Aqeinq Interval Market Value (� -
< 1 M $ 18,258 ` Portfolio Ageing w/o SLGSsI
<2M - _
<3M _ ` 100 -
90
<6M 5,940 � ... 80
< 1YR 14,936 � 70
<2YR 32,759 � 0 50 33
<3YR 18,750 0 30 �g 19
<4YR 10,112 a 20 6 15 10
<5YR _ 10 0 0 0 0
0
>5YR ' i <1M <2M <3M <6M < < < < < >
Total: $ 100,755 � 1YR 2YR 3YR 4YR 5YR 5YR
Quality* Market Value Credit Quality
AAA $ 270,931 � ',
89%
AA 9,016 '
A 8,931
Unrated"" 13,657 Unrated`*
Total: $ 302,535 5% '� A
\
3% 30�0
Sector Market Value I IAsset Allocation
• MMF $ 192,979 MMF
Agencies 64,551 64%
LAIF 13,657
LGIP 13,401
MTNs 17,947 Agencies '
CP - M6 Ns 21%
Treasuries - ', LAIF
LGIP
Total: $ 302,535 5% 4%
Month RDA Yield LAIF Yield Variance ' Performance
Apr06 4.50 4.30 0.20
M ay 4.60 4.56 0.04 ! 5.4 ��._.�-�.____.____
Jun 4.69 4.70 -0.01 ,
Jul 4.82 4.85 -0.03 0 5.0 I
Aug 4.85 4.95 -0.10 I� ..•
Sep 4.94 5.02 -0.09 d
Oct 4.95 5.10 -0.15 } 4.6
Nov 4.95 5.13 -0.18
Dec 4.95 5.13 -0.18 4.2 ,
Jan07 5.05 5.16 -0.11 Apr06 May Jun Jul Aug Sep Oct Nov Dec Jan07 Feb Mar �I
Feb 5.06 5.18 -0.12 I
Mar 5.11 5.21 -0.11 ■LAIF Yield ■RDA Yield !,
i
* Standard and Poors
' ** LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
31 March 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 4,000,000 CITIGROUP 6.20 3/15/09 $ 4,078,160 5.13 102.08 $ 4,083,116 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,949,082 5.12 96.94 $ 3,945,507 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,964,237 5.12 96.94 $ 2,961,553 Aa3 A+
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,024,494 5.00 101.19 $ 2,023,756 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,975,491 4.96 98.34 $ 1,966,864 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,971,272 5.18 98.87 $ 2,966,004 Aa1 AA-
$ 18,125,000 Subtotal $ 17,962,736 5.10 $ 17,946,800
Federal Agency--Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,989,300 3.43 98.84 $ 2,965,313 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,071,436 4.88 103.77 $ 2,075,434 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,963,406 4.89 98.09 $ 1,961,875 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,994,874 4.87 99.91 $ 1,998,125 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,998,751 3.82 99.16 $ 2,974,688 Aaa AAA
' $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,937,240 4.79 99.06 $ 3,932,781 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,937,240 4.79 99.06 $ 3,932,781 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,450,416 5.59 98.94 $ 4,452,188 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,935,321 4.88 96.72 $ 1,934,375 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,986,880 4.84 99.59 $ 3,983,750 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,962,174 4.89 97.78 $ 1,960,514 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,954,466 5.49 100.13 $ 2,002,500 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,953,858 5.50 100.13 $ 2,002,500 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,969,058 5.16 99.00 $ 1,970,100 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,005,457 4.87 97.91 $ 2,006,099 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,333 5.07 100.05 $ 2,001,076 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,081,223 5.54 106.50 $ 2,130,000 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,885,921 5.54 106.50 $ 3,976,710 Aaa AAA
$ 4,155,000 FED NAT MTG ASSOC 6.63 9/15/09 $ 4,315,234 4.89 104.06 $ 4,323,797 Aaa AAA
$ 2,000,000 FED NAT MTG ASSOC 3.88 11/17/08 $ 1,969,967 4.87 98.31 $ 1,966,250 Aaa AAA
$ 54,373,000 Subtotal $ 54,360,557 4.92 $ 54,550,855
Federal Agency--Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/15/08 $ 5,000,000 5.25 100.00 $ 5,000,000 Aaa AAA
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1/08 $ 5,000,000 5.25 100.00 $ 5,000,000 Aaa AAA
$ 10,000,000 Subtotal $ 10,000,000 5.25 $ 10,000,000
Local Government investment Pool
$ 1,030,425 L.A.I.F. 0.00 4/1/07 $ 1,030,425 5.21 100.00 $ 1,030,425 U U
$ 4,554,701 L.A.I.F.(HOUSING) 0.00 4/1/07 $ 4,554,701 5.21 100.00 $ 4,554,701 U U
$ 8,071,685 L.A.I.F. BOND PROCEEDS 0.00 4/1/07 $ 8,071,685 5.21 100.00 $ 8,071,685 U U
$ 13,656,811 Subtotal $ 13,656,811 5.21 $ 13,656,811
• "U"= Unrated Page 7 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
31 March 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Local Government Investment Pool
$ 13,400,776 C.A.M.P. 0.00 4/1/07 $ 13,400,776 5.22 100.00 $ 13,400,776 U AAA
$ 13,400,776 Subtotal $ 13,400,776 5.22 $ 13,400,776
Money Market Fund
$ 192,979,480 WF ADVANTAGE GOVT MMF 0.00 4/1/07 $ 192,979,480 5.14 100.00 $ 192,979,480 Aaa AAA
$ 192,979,480 Subtotal $ 192,979,480 5.14 $ 192,979,480
Total Investments
$ 302,535,067 $ 302,360,359 5.11 $ 302,534,722
Cash
$ 849,887 HOUSING AUTH CHKG 0.00 4/1/07 $ 849,887 0.00 100.00 $ 849,887 U U
$ 322,155 HOUSING AUTH TRUST 0.00 4/1/07 $ 322,155 0.00 100.00 $ 322,155 U U
� $ 1,172,042 Subtotal $ 1,172,042 $ 1,172,042
. Total Investments and Cash
$ 303,707,108 $ 303,532,401 $ 303,706,763
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.34%
JP MORGAN CHASE 2.27%
FIRST UNION NAT BANK 0.67%
WELLS FARGO BANK 1.62%
• "U"= Unrated Page 8 of 9
� 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 Audit, Investment, and Finance Committee and the Palm Desert City
Council review the Statement of Investment Policy annually.
For the month ended 31 March 2007,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 yieid(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 April 2007,
��s ��� c.c.M r �
City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
� California Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City °/a 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 Agency Debt 5 Years No Limit Not Authorized
53601(e) Federal Agencies 5 Years No Limit 5 Years 30°/a 6% 18.6% 21.3%
53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 &P-1 - -
53601(g) Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25% A-1+or P-1 0.0% 0.0%
. 53601(h) Negotiable CDs 5 Years 30°/a 5 Years 30% AA-or Aa3 - -
53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - -
53601(i) Reverse Repos 92 Days 20% NotAuthorized
53601(j) Medium-Term Notes 5 Years 30% A 5 Years 30% A 21.2% 5.9%
53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA&Aaa 20.9% 63.8%
53601(I) Trust Indenture Debt NotAuthorized
53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA&Aaa AAA&Aaa
Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor 23.3% 4.4%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized
Securities AA(Security
LAIF No Limit No Limit 0.4% 4.5%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 84.3% 100.0%
(2) Maximum limit for mutual funds and local government investment pools,excluding bond proceeds.
' * Certified California Municipal Treasurer Page 9 of 9