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HomeMy WebLinkAboutINVSTMNT RPRT - JAN 07 �,_ _ � ��•�� CITY OF PALM DESERT � � FINANCE DEPARTMENT . . INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY�� DATE: MARCH 1, 2007 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for January 2007 which were presented and approved at the February 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 Attachment (as noted) � ' �ITY COUNCTL ACTION: "���'� � � 6Y RDA APPROVED � DENIED �CEIVED E � OTHER ON - � -o2�-D� .._._ �.ETI G DATE - . VERIFIED BY_����-��.J - AYES: ` NOES: Originaf on file with City Clerk's Office ABSENT• 1�BSTAIN• 'VE�tIFIED BY; (�riginal on File with ity Clerk's Office G:\Finance\Niamh OrtegalWpdocsllnvesiment Committee\Memos\rklasseninvreport.wpd �.._ City of Palm Desert � � City and Redeve{opment Agency Portfolios COMPLIANCE ANALYStS AND iNVESTMENT REPORT January 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 Open Market Committee ("FOMC") met on 31 January, and took no action. The Federal Funds Rate remains at 5.25 percent. The FOMC cited firmer economic growth, and signs of stabilization in the housing market as the basis for its decision. While the FOMC remains concerned about inflation, it believes that the economy will expand at a moderate pace over coming quarters. The next FOMC meeting will be on 20-21 March. Most economists are now predicting economic growth of 2.5-3.0 percent during the first half of 2007, with inflation at 2.0 percent, and no interest-rate cuts. Housing has reached a temporary bottom; consumer confidence has improved; retail sales are solid; employment is rising; and inflation is stable. Growth in foreign economies, and a weaker dollar should increase foreign demand for U.S. goods and services. Fourth-quarter Gross Domestic Product("GDP"), however, may be weak. Indeed, there is still the possibility that the U.S. might slip into a recession. Alan Greenspan recently observed that U.S. profit margins are beginning to stabilize, which is an early sign that the economy is in the last stages of a business cycle. Possible surprises in 2007 might include an early rebound in housing due to low interest rates and limited home-price declines; hedge-fund problems that trigger a flight-to-quality and interest-rate cuts; and unexpectedly steep oil-price declines due to increased non-OPEC production, and inadequate OPEC production cuts. ��s ��� c.c.�r. Treasurer PORTFOLIO STATISTICS Dollars in Thousands JAN-O7 DEC-06 NOV-06 OCT-06 SEP-06 AUG-06 CITY Month-End Book Value"' $ 237,367 $ 159,050 $ 159,790 $ 157,403 $ 162,442 $ 169,367 Month-End Market Value'*' $ 237,168 $ 158,939 $ 159,912 $ 157,328 $ 162,291 $ 169,096 PaperGain(Loss) $ (199) $ (111) $ 122 $ (75) $ (151) $ (271) Prior Year Book Variance $ 89,718 $ 15,863 $ 12,880 $ 8,748 $ 13,361 $ 15,822 Interest Earnings $ 853 $ 650 $ 635 $ 657 $ 662 $ 678 Yield-To-Maturity 5.06% 5.03% 5.01% 4.99% 4.96% 4.92% Weighted Maturity(Days) 402 495 514 517 449 443 Effective Duration 0.57 0.75 0.80 0.83 0.70 0.72 RDA Month-End Book Value'** $ 235,609 $ 111,068 $ 115,137 $ 116,220 $ 127,042 $ 141,601 Month-End Market Value"* $ 235,493 $ 111,060 $ 115,388 $ 116,302 $ 127,023 $ 141,444 Paper Gain(Loss) $ (116) $ (8) $ 251 $ 82 $ (19) $ (157) PriorYearBookVariance $ 83,830 $ (14,327) $ (6,074) $ (7,023) $ 1,024 $ 2,120 Interest Earnings $ 1,018 $ 465 $ 466 $ 489 $ 530 $ 570 Yield-To-Maturity 5.05% 4.95°/a 4.95% 4.95% 4.94% 4.85% Weighted Maturity(Days) 305 668 644 638 585 544 Effective Duration 0.49 1.10 1.11 1.14 1.09 0.99 "` Omits SLGSs. City of Palm Desert-- Portfolio Characteristics 31 January 2007 ---- -----___.._....__--- As�ein�t Interval Market Value (r � < 1M $ 44,006 ; General Fund Ageingl � <2M 2,796 I � <3M - 100 ' <6M 5,504 ^, gp < 1 YR 8,906 ' � <2YR 18,834 0 60 40 <3YR 18,913 0 40 <4YR 7,978 a 20 �� 17 <5YR 2,067 3 � 5 $ � 2 0 >5YR _ I. 0 < 1M <2M <3M <6M < < < < < > Total: $ 109,004 ! 1YR 2YR 3YR 4YR 5YR 5YR \ Ratins�s' Market Value Credit Gluality AAA $ 128,270 � AA 2,955 B 66% A 11,943 5% Unrated" 39,569 B 10,111 Unrated"" Total: S 192,848 21% A AA 6°/u 2% Sector Market Value Asset Allocation MTNs MMF $ 47,302 Agencies �go�o Agencies 37,428 19% MTNs 35,092 LGIP 33,457 LGIP RDA Loan 32,785 MMF 17% LAI F 6,784 25�/a CP ' LAIF RDA Loan Total: S 192,848 4% 17% Month Ci Yield LAIF Yield Variance Pe�ormance Feb06 4.31 4.04 0.27 Mar 4.38 4.14 0.23 5,2 Apr 4.47 4.30 0.17 May 4.62 4.56 0.05 Jun 4.72 4.70 0.02 ° Jul 4.86 4.85 0.01 m 4.5 Aug 4.92 4.95 -0.02 } Sep 4.96 5.02 -0.07 Oct 4.99 5.10 -0.11 3.8 NOv 5.01 5.13 -0.12 Feb06 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan07 Dec 5.03 5.13 -0.09 Jan07 5.06 5.16 -0.10 ■�ni� v,,,i�+ ■�;iy v�F�ic� ' Standard and Poors " LAIF, and City Loan to RDA Page 2 of 8 City of Palm Desert Portfolio Holdings 31 January 2007 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 03/11/08 $ 2,996,360 5.08 98.65 $ 2,982,150 A1 A+ $ 3,000,000 BANK ONE 4.13 09/01/07 $ 3,008,005 3.64 99.27 $ 2,977,962 Aa3 A+ $ 2,920,000 BANK OF AMERICA 5.88 02/15/09 $ 2,967,802 5.01 101.21 $ 2,955,271 Aa2 AA- $ 3,000,000 FORD MOTOR CREDIT CORP 7.20 06/15/07 $ 3,014,230 5.75 99.99 $ 2,999,802 B1 B $ 2,500,000 FORD MOTOR CREDIT CORP 7.20 06/15/07 $ 2,511,858 5.75 99.99 $ 2,499,835 B1 B $ 4,612,000 FORD MOTOR CREDIT CORP 7.20 06/15/07 $ 4,645,483 5.10 99.99 $ 4,611,695 B1 B $ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,956,064 4.99 97.25 $ 1,944,974 Aaa AAA $ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,984,659 5.63 98.77 $ 2,009,988 Aaa AAA $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,967,704 5.65 105.23 $ 1,989,814 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.13 02/22/11 $ 2,032,316 5.67 103.06 $ 2,061,204 Aaa AAA $ 3,000,000 GOLDMAN SACHS 7.20 03/01/07 $ 3,008,838 3.50 100.13 $ 3,004,017 Aa3 A+ $ 3,080,000 WACHOVIA CORP. 3.63 02/17/09 $ 2,998,015 5.02 96.71 $ 2,978,733 Aa3 A+ $ 2,000,000 WAL-MART 6.88 08/10/09 $ 2,089,212 4.93 103.83 $ 2,076,614 Aa2 AA $ 35,061,000 Subtotal $ 35,180,546 5.00 a 35,092,058 Federal Agencies-Coupon $ 3,000,000 FED HOME LOAN BANK 3.70 08/15/07 $ 2,998,576 3.79 99.16 $ 2,974,688 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.38 09/11/09 $ 2,964,690 5.59 98.28 $ 2,948,438 Aaa AAA $ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,975,381 4.87 99.34 $ 1,967,006 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.63 09/12/08 $ 2,989,027 5.40 99.19 $ 2,975,625 Aaa AAA $ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,002,933 4.87 97.13 $ 1,990,091 Aaa AAA $ 3,030,000 FED HOME LOAN BANK 4.00 03/10/08 $ 2,997,433 5.02 98.66 $ 2,989,284 Aaa AAA $ 2,033,000 FED HOME LOAN MTG CORP 4.25 07/15/09 $ 2,004,815 4.87 98.06 $ 1,993,611 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,961,749 4.88 97.50 $ 1,949,938 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/03/08 $ 1,994,787 5.06 99.50 $ 1,990,090 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 07/12/10 $ 1,973,030 5.47 97.03 $ 2,000,784 Aaa AAA $ 2,786,000 FED NAT MTG ASSOC 7.13 03/15/07 $ 2,797,677 3.55 100.22 $ 2,792,094 Aaa AAA $ 3,000,000 FED NAT MTG ASSOC 3.00 OS/15/07 $ 2,990,503 3.63 98.78 $ 2,963,438 Aaa AAA $ 2,000,000 FED NAT MTG ASSOC 4.63 10/28/09 $ 1,987,243 4.88 98.81 $ 1,976,250 Aaa AAA $ 2,000,000 FED NAT MTG ASSOC 4.25 08/15/10 $ 1,919,854 5.47 97.38 $ 1,947,500 Aaa AAA � 33,940,000 Subtotal 5 33,557,697 4.76 $ 33,458,837 Federal Agencies-Callable $ 2,000,000 FED HOME LOAN BANK 4.20 07/18/08 $ 1,981,471 4.88 98.66 $ 1,973,125 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 5.05 08/22/08 $ 1,999,610 5.06 99.81 $ 1,996,260 Aaa AAA $ 4,000,000 Subtotal $ 3,981,082 4.97 S 3,969,385 Local Government Investment Pool $ 6,783,585 L.A.I.F. 0.00 02/01/07 $ 6,783,585 5.16 100.00 $ 6,783,585 U U a 6,783,585 Subtotal $ 6,783,585 5.16 S 6,783,585 "U"= Unrated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 January 2007 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SSP Local Government Investment Pool $ 32,912,714 C.A.M.P. 0.00 02/01/07 $ 32,912,714 5.21 100.00 $ 32,912,714 U AAA $ 544,755 C.A.M.P. (HOUSING) 0.00 02/01/07 $ 544,755 5.21 100.00 $ 544,755 U AAA $ 33,457,469 Subtotal $ 33,457,469 5.21 S 33,457,469 Money Market Fund $ 47,302,400 WF ADVANTAGE GOVT MMF 0.00 02/01/07 $ 47,302,400 5.13 100.00 $ 47,302,400 Aaa AAA S 47,302,400 Subtotal 0.00 $ 47,302,400 5.13 b 47,302,400 City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 0.00 02/01/37 $ 32,785,480 5.16 100.00 $ 32,785,480 U U $ 32,785,480 Subtotal $ 32,785,480 5.16 a 32,785,480 Total Investments � 193,329,934 5 193,048,258 5.06 S 192,849,214 Cash $ 42,987,275 CITY MAIN CHKG 0.00 02/01/07 $ 42,987,275 0.00 100.00 $ 42,987,275 U U $ 602,337 DESERT WILLOW CHKG 0.00 02/01/07 $ 602,337 0.00 100.00 $ 602,337 U U $ 627,437 MONTEREY 170 CHKG 0.00 02/01/07 $ 627,437 0.00 100.00 $ 627,437 U U $ 101,358 RECREATIONAL FAC CHKG 0.00 02/01/07 $ 101,358 0.00 100.00 $ 101,358 U U S 44,318,407 $ 44,318,407 $ 44,318,407 Total Investments and Cash a 237,648,341 a 237,366,665 5 237,167,621 %of Portfolio Corporate Issuers (Market Value) AMERICAN HONDA FINANCE 1.26% BANK ONE 1.26% BANK OF AMERICA 1.25% FORD MOTOR CREDIT CORP 4.26% GENERAL ELECTRIC 3.38% GOLDMAN SACHS 1.27% WACHOVIA 1.26% WAL-MART 0.88% "U"= Unrated Page 4 of 8 Palm Desert Redevelopment Agency -- Portfolio Characteristics 31 January 2007 Dollars in Thousands A�eins�Interval Market Value � �l < 1 M $ 20,136 , Portfolio Ageing w/o SLGSsI � <2M 5,962 � � < 3M - ' 100 i 90 � <6M - gp j < 1 YR 5,909 ' � 70 i <2YR 21,692 � '0 50 i < 3YR 18,689 I o 30 24 26 23 ! <4YR 6,109 � a 20 7 7 7 ' <5YR 3,990 10 0 0 5 0 ', 0 i >5YR - ; < 1M <2M <3M <6M < < < < < > ' Total: � 82,487 I 1YR 2YR 3YR 4YR 5YR 5YR ! � J (lualit * Market Value Credit Quality � AAA $ 212,752 90% AA 1,961 A 2,017 Unrated" 18,367 Unrated" Total: S 235,097 S% � 1Ao Sector Market Value Asset Allocation MMF MMF $ 136,928 58��0 Agencies 58,265 LAIF 18,367 LGIP 17,559 MTNs 3,978 MTNs CP - 2% Agencies Treasuries _ LAIF 25% go/a LGIP Total: 5 235,097 �o�o Month RDA Yield LAIF Yield Variance Pertormance Feb06 4.26 4.04 0.22 Mar 4.38 4.14 0.24 5.3 Apr 4.50 4.30 0.20 May 4.60 4.56 0.04 0 4.8 Jun 4.69 4.70 -0.01 Jul 4.82 4.85 -0.03 d Aug 4.85 4.95 -0.10 } 4.3 Sep 4.94 5.02 -0.09 Oct 4.95 5.10 -0.15 3.8 Nov 4.95 5.13 -0.18 Feb06Mar Apr May Jun Jul Aug Sep Oct Nov DecJan07 Dec 4.95 5.13 -0.18 Jan07 5.05 5.16 -0.11 ■LAIF Yield ■RDA Yield ' Standard and Poors '" LAIF Page 5 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 January 2007 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Medium-Term Notes $ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,026,943 5.00 100.83 $ 2,016,516 Aa3 A+ $ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,972,514 4.96 98.05 $ 1,961,062 Aa1 AA- $ 4,000,000 Subtotal E 3,999,457 4.98 5 3,977,578 Federal Agency--Coupon $ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,985,433 3.43 98.41 $ 2,952,188 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,076,167 4.88 103.35 $ 2,066,914 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,959,507 4.89 97.50 $ 1,950,000 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,994,509 4.87 99.31 $ 1,986,250 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,998,292 3.82 98.88 $ 2,966,250 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,933,468 4.79 98.63 $ 3,915,413 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,933,468 4.79 98.63 $ 3,915,413 Aaa AAA $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,447,035 5.59 98.28 $ 4,422,656 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,931,157 4.88 95.91 $ 1,918,125 Aaa AAA $ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,985,369 4.84 99.19 $ 3,967,500 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,959,089 4.89 97.09 $ 1,946,730 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,952,542 5.49 99.34 $ 1,986,875 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,951,909 5.50 99.34 $ 1,986,875 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.88 3/15/07 $ 3,005,236 3.38 99.94 $ 2,998,125 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORF 4.00 12/15/09 $ 2,002,774 4.87 97.13 $ 1,990,091 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORF 5.00 7/23/08 $ 1,998,121 5.07 99.74 $ 1,994,778 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORF 6.88 9/15/10 $ 2,085,140 5.54 105.88 $ 2,117,500 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORF 6.88 9/15/10 $ 3,893,248 5.54 105.88 $ 3,953,373 Aaa AAA $ 2,973,000 FED NAT MTG ASSOC 3.63 3/15/07 $ 2,973,254 3.95 99.78 $ 2,966,497 Aaa AAA $ 4,155,000 FED NAT MTG ASSOC 6.63 9/15/09 $ 4,326,109 4.89 103.69 $ 4,308,216 Aaa AAA $ 2,000,000 FED NAT MTG ASSOC 3.88 11/17/08 $ 1,966,892 4.87 97.75 $ 1,955,000 Aaa AAA S 58,356,000 Subtotal $ 58,358,719 4.78 S 58,264,767 Local Government Investment Pool $ 1,030,425 L.A.I.F. 0.00 2/1/07 $ 1,030,425 5.16 100.00 $ 1,030,425 U U $ 5,554,701 L.A.I.F. (HOUSING) 0.00 2/1/07 $ 5,554,701 5.16 100.00 $ 5,554,701 U U $ 11,781,851 L.A.I.F. BOND PROCEEDS 0.00 2/1/07 $ 11,781,851 5.16 100.00 $ 11,781,851 U U E 18,366,977 Subtotal $ 18,366,977 5.16 S 18,366,977 Local Government Investment Pool $ 17,559,278 C.A.M.P. 0.00 2/1/07 $ 17,559,278 5.21 100.00 $ 17,559,278 U AAA a 17,559,278 Subtotal $ 17,559,278 5.21 $ 17,559,278 Money Market Fund $ 136,928,191 WF ADVANTAGE GOVT MMF 0.00 2/1/07 $ 136,928,191 5.13 100.00 $ 136,928,191 Aaa AAA S 136,928,191 Subtotal $ 136,928,191 5.13 $ 136,928,191 U = Unrated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 January 2007 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P Total Investments $ 235,210,446 S 235,212,623 5.05 E 235,096,791 Cash $ 73,678 HOUSING AUTH CHKG 0.00 2/1/07 $ 73,678 0.00 100.00 $ 73,678 U U $ 322,995 HOUSING AUTH TRUST 0.00 2/1/07 $ 322,995 0.00 100.00 $ 322,995 U U S 396,673 Subtotal $ 396,673 5 396,673 Total Investments and Cash $ 235,607,119 S 235,609,296 S 235,493,464 %of Portfolio Corporate Issuers (Market Value) FIRST UNION NAT BANK 0.86% WELLS FARGO BANK 0.83% U = Unrated Page 7 of 8 STATEMENT OF COMPLIANCE The investment portfolios of the Ciry 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 Califomia 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 January 2007,the Ciry 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 safery, 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 27 February 2007, ��s ���aon, c.c.M r. � City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Pollcy CA Govt Maximum Maximum Quality Maximum Maximum Qualiry %of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S8�P/Mdys Portfolio Portfolio 53601(a Palm Desert Bonds 5 Years No Limit NotAuthorized 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 Authorized 53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 19.4% 24.8% 53601 Bankers's Acce tances 180 Da s 40% 180 Da s 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% 5 Years 30% AA-or Aa3 - - 53601(i) Repos 1 Year No Limit 30 Da s 20% AAA 8�Aaa - - 53601 i Reverse Repos 92 Da s 20% Not Authorized 53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 18.2% 1.7% 53601 k) Mutual Funds 90 Da s 20% AAA 8�Aaa 90 Da s 20% (2) AAA&Aaa 24.5% 58.2% 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&Aaa Investment Pools 90 Da s 20% or Advisor 90 Da s 20% (2) or Advisor 17.3% 7.5% 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA Securi LAIF No Limit No Limit 3.5% 7.8% (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 83.0% 100.0% 2) Maximum limit for mutual funds and local overnment investment ools, excludin bond proceeds. ' Certified Ca/ifornia Municipa/Treasurer Page 8 of 8