HomeMy WebLinkAboutInvstmnt Rprt - Aug '07 ��� City of Palm Desert � �
� City and Redevelopment Agency Portfolios �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
August 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 September 18, and cut the Federal Funds Rate by 50 basis points to
4.75%, and the Discount Rate by another 50 basis points to 5.25%. This was the first Federal Funds cut since 2003. The
FOMC stated that it lowered the rates to address tighter credit conditions, and a weakening housing market. The Federal
Funds Rate cut is expected to lower rates on home equity lines of credit. Adjustable-rate mortgages, which are tied to the
LIBOR index, are not expected to get any immediate relief, however. Yields on money market funds will decline. The FOMC's
next meeting will be on October 30.
August economic statistics showed the first employment drop in four years, with a decrease of 4,000 Non-Farm Payroll jobs.
Housing and auto sales also sagged as consumer spending decreased. Housing speculators accounted for a high proportion
of housing loan defaults. Spreads widened on corporate debt, but particularly on asset-backed commercial paper due to the
risk that it might be secured with subprime mortgages. Federal agencies also carried a significant credit spread to U.S.
Treasuries. In September, crude oil prices rose to over$80 per barrel.
The revised economic forecasts for the second half of 2007 imply U.S. economic growth of less than 2.00%. The key
question is whether this rate cut will be the first of several, or whether the economy will soon recover as it did after the 1998
Long Term Capital Management crisis.
��s ���on, c.c.�r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
AUG-07 JUL-07 JUN-07 MAY-07 APR-07 MAR-07
CITY
Month-End Book Value"' $ 245,850 $ 256,143 $ 243,098 $ 257,259 $ 248,864 $ 210,992
Month-End Market Value"' $ 245,945 $ 256,176 $ 242,909 $ 257,049 $ 248,991 $ 211,087
Paper Gain(Loss) $ 95 $ 33 $ (189) $ (210) $ 127 $ 95
Prior Year Book Variance $ 76,483 $ 85,202 $ 69,826 $ 77,552 $ 98,111 $ 61,048
Interest Earnings $ 1,045 $ 1,066 $ 1,029 $ 1,067 $ 952 $ 891
Yield-To-Maturity 5.09°/a 5.11% 5.11°/a 5.11% 5.13% 5.13%
Weighted Maturity(Days) 415 308 324 355 376 428
Effective Duration 0.75 0.45 0.50 0.50 0.56 0.66
RDA
Month-End Book Value"' $ 289,864 $ 293,026 $ 302,709 $ 311,195 $ 279,009 $ 303,532
Month-End Market Value"' $ 290,104 $ 293,073 $ 302,676 $ 311,011 $ 279,204 $ 303,707
Paper Gain(Loss) $ 240 $ 47 $ (33) $ (184) $ 195 $ 175
Prior Year Book Variance $ 148,263 $ 145,329 $ 158,249 $ 173,739 $ 136,331 $ 154,073
Interest Earnings $ 1,233 $ 1,270 $ 1,271 $ 1,191 $ 1,203 $ 1,333
Yield-To-Maturity 5.07% 5.10% 5.11% 5.10% 5.09% 5.11%
Weighted Maturity(Days) 314 279 274 267 293 269
Effective Duration 0.47 0.39 0.40 0.42 0.49 0.47
- "' Omits SLGSs.
.� City of Palm Desert -- Portfolio Characteristics
August 31, 2007
___. .
Ageing Interval Market Value ('General Fund Ageingl 1
< 1 M $ 41,253 j �
<2M - ,
� 3M 100 -------------------- - -... ----------__. ;
<6M 3,969 � gp
< 1YR 13,944 '
<2YR 20,948 0 60
. < 3YR 46,943 0 40 30 34
i
<4YR 10,183 a 20 10 15 �
< 5YR - � � 3 � 0 0 �
0
>5YR " < 1 M <2M < 3M <6M < < < < < >
Total: S 137,240 1YR 2YR 3YR 4YR 5YR 5YR J
\�
Credit Quality
Ratinas' Market Value
AAA $ 161,913
AA 33,004 A '�
8% 76%
A 17,109
Unrated " 33,640 qq
Total: S 245,666 16%
Sector Market Value Asset Allocation
. Agencies
MMF $ 69,542 17% MTNs
Agencies 40,953 �*� 2q%
MTNs 58,170 '�"'�'���`
CAMP 39,199 MMF
RDA Loan 32,785 28%
UB Sweep 4,162 CAMP
LAIF 855 16%
CP - UB Sweep RDA Loan
Total: S 245,666 2��° 13%
Month Citv Yield LAIF Yield Variance Performance
Sep06 4.96 5.02 -0.07
Oct 4.99 5.10 -0.11 5.4 --------- ----------
Nov 5.01 5.13 -0.12
Dec 5.03 5.13 -0.09
Jan07 5.06 5.16 -0.10 �
Feb 5.08 5.18 -0.11 �-�, 4 9
Mar 5.13 5.21 -0.08 }
Apr 5.13 5.22 -0.10
May 5.11 5.25 -0.13 4.4
Jun 5.1 1 5.25 -0.14 Sep06 Oct Nov Dec Jan07 Feb Mar Apr May Jun Jul Aug
Jul 5.11 5.26 -0.15
Aug 5.09 5.25 -0.17 � � �
_ ' Standard and Poors
" LAIF, and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
August 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Medium-Term Notes
$ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 3,010,346 5.08 99.30 $ 3,001,939 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,000,000 3.64 100.00 $ 3,000,000 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,954,126 5.01 101.27 $ 2,957,221 Aa2 AA-
$ 15,270,000 CITIGROUP 4.13 2/22/10 $ 14,993,903 4.91 97.64 $ 14,908,910 Aa1 AA
$ 2,035,000 CITIGROUP 4.13 2/22/10 $ 1,998,205 4.91 97.64 $ 1,986,878 Aa1 AA
$ 1,000,000 CITIGROUP 4.63 8/3/10 $ 984,831 5.19 98.89 $ 988,917 Aa1 AA
$ 4,000,000 CITIGROUP 4.63 8/3/10 $ 3,939,324 5.19 98.89 $ 3,955,668 Aa1 AA
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,971,091 4.99 98.18 $ 1,963,636 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,992,548 5.63 99.74 $ 2,029,609 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,955,894 5.65 105.52 $ 1,995,455 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,027,671 5.67 103.44 $ 2,068,776 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,988,670 5.13 99.28 $ 1,985,584 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,988,821 5.25 99.25 $ 1,985,008 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,021,407 5.02 98.00 $ 3,018,259 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,969,477 5.18 97.92 $ 1,958,376 Aa3 A+
$ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,151,248 5.02 108.00 $ 2,160,034 Aa3 A+
. $ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,068,602 4.93 103.47 $ 2,069,324 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,172,250 5.13 104.11 $ 4,164,312 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,975,238 5.09 98.63 $ 1,972,510 Aa1 AA-
3 58,254,000 Subtotal $ 58,163,652 5.02 S 58,170,416
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,012,483 4.61 100.13 $ 3,003,750 Aaa AAA
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,012,483 4.61 100.13 $ 3,003,750 Aaa AAA
$ 2,015,000 FED FARM CREDIT BANK 3.38 7/15/08 $ 1,992,787 4.68 98.63 $ 1,987,294 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,972,578 5.59 99.31 $ 2,979,375 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,976,827 4.87 99.78 $ 1,975,669 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,992,993 5.40 99.69 $ 2,990,625 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,012,289 4.87 98.41 $ 2,016,344 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,014,573 5.02 99.34 $ 3,010,116 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,011,510 4.87 99.09 $ 2,014,576 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,969,726 4.88 98.73 $ 1,974,642 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,996,519 5.06 100.04 $ 2,000,714 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,988,086 5.47 98.41 $ 2,029,137 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,989,957 4.88 99.81 $ 1,996,250 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,933,064 5.47 98.69 $ 1,973,750 Aaa AAA
b 33,169,000 Subtotal S 32,875,876 5.02 5 32,955,991
"U"= Unrated Page 3 of 9
City of Palm Desert
Portfolio Holdings
August 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Federal Agencies--Discount
$ 2,000,000 FED HOME LOAN BANK 0.00 7/18/08 $ 1,988,855 4.88 99.31 $ 1,986,250 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 0.00 8/22/08 $ 1,999,756 5.06 100.09 $ 2,001,846 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 0.00 8/13/09 $ 2,000,000 5.30 100.21 $ 2,004,174 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 0.00 2/1/10 $ 2,000,000 5.37 100.22 $ 2,004,375 Aaa AAA
S 8,000,000 Subtotal S 7,988,611 5.15 S 7,996,645
Local Government Investment Pool
$ 854,503 L.A.I.F. 0.00 9/1/07 $ 854,503 5.25 100.00 $ 854,503 U U
S 854,503 Subtotal S 854,503 5.25 S 854,503
Local Government Investment Pool
$ 37,712,924 C.A.M.P. 0.00 9/1/07 $ 37,712,924 5.20 100.00 $ 37,712,924 U AAA
$ 1,486,019 C.A.M.P. (HOUSING) 0.00 9/1/07 $ 1,486,019 5.20 100.00 $ 1,486,019 U AAA
S 39,198,943 Subtotal S 39,198,943 5.20 S 39,198,943
Money Market Fund
' $ 69,542,196 WF ADVANTAGE GOVT MMF 0.00 9/1/07 $ 69,542,196 5.10 100.00 $ 69,542,196 Aaa AAA
S 69,542,196 Subtotal S 69,542,196 5.10 S 69,542,196
Money Market Fund
$ 4,161,749 HIGHMARK SWEEP 0.00 9/1/07 $ 4,161,749 3.68 100.00 $ 4,161,749 U U
S 4,161,749 Subtotal S 4,161,749 3.68 E 4,161,749
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 9/1/37 $ 32,785,480 5.25 100.00 $ 32,785,480 U U
S 32,785,480 Subtotal S 32,785,480 5.25 S 32,785,480
Total Investments
S 245,965,870 S 245,571,008 5.09 3 245,665,922
Cash
$ (1,579,033) CITY MAIN CHKG "' 0.00 9/1/07 $ (1,579,033) 0.00 100.00 $ (1,579,033) U U
$ 705,731 DESERT WILLOW CHKG 0.00 9/1/07 $ 705,731 0.00 100.00 $ 705,731 U U
$ 1,027,121 MONTEREY 170 CHKG 0.00 9/1/07 $ 1,027,121 0.00 100.00 $ 1,027,121 U U
$ 111,553 RECREATIONAL FAC CHKG 0.00 9/1/07 $ 111,553 0.00 100.00 $ 111,553 U U
$ 13,547 FALCON CREST HOA CHKG 0.00 9/1/07 $ 13,547 0.00 100.00 $ 13,547 U U
$ - ART, FOOD&WINE CHKG 0.00 9/1/07 $ - 0.00 100.00 $ - U U
S 278,919 Subtotal S 278,919 s 278,919
' "U"= Unrated Page 4 of 9
City of Palm Desert
Portfolio Holdings
August 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Total Investments and Cash
S 246,244,789 S 245,849,927 S 245,944,841
'"` NOTE: CITY MAIN CHECKING BALANCE IS A BOOK OVERDRAFT-- NOT A BANK OVERDRAFT. NEGATIVE NUMBER
REFLECTS BALANCE IN ACCOUNT PRIOR TO INCOMING TRANSFER OF FUNDS FROM SWEEP ACCOUNT.
%of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA FINANCE 1.22%
BANK ONE 1.22%
BANK OF AMERICA 1.20%
CITIGROUP 8.88%
GENERAL ELECTRIC 3.28%
I BM 0.81%
JP MORGAN CHASE 0.81%
WACHOVIA 2.90%
WAL-MART 0.84°/a
WELLS FARGO BANK 2.50°/a
"U"= Unrated Page 5 of 9
� Palm Desert Redevelopment Agency-- Portfolio Characteristics
August 31, 2007
Aqeinq Interval Market Value �
< 1 M $ 24,632 / Portfolio Ageing wlo SLGSsI
<2M -
< 3 M - �oo -- ------ -------- ;
90
<6M 4,998 � o gp '
< 1 YR 10,875 v 70 i
<2YR 37,866 0 50 34 !
< 3YR 16,735 0 30 22 �
<4YR 14,954 a 20 5 10 15 14 �
< 5YR _ 10 0 0 0 0 i
0
> 5YR - < 1 M <2M < 3M <6M < < < < < > �
Total: S 110,060 � 1 YR 2YR 3YR 4YR 5YR SYR
\
.._.. _._....... _ - -- ------ �
Quality* Market Value Credit Quality
AAA $ 256,777 AAA
AA 18,015 89%
A 9,009 Unrated"
Unrated " 5,738 2% AA A
Total: $ 289,539 6°�° 3°�0
Sector Market Value Asset Allocation
MMF $ 169,672
Agencies 64,594 MMF
LAIF 11,824 62%
MTNs 27,023
CAMP 16,426
CP - Agencies
Treasuries _ MTNs Zqo�o
10% LAIF
Total: S 289,539 q%
Month RDA Yield LAIF Yield Variance Performance
Sep06 4.94 5.02 -0.09
Oct 4.95 5.10 -0.15 5.4 �---------- ------- -------
Nov 4.95 5.13 -0.18
Dec 4.95 5.13 -0.18
0 5.0
Jan07 5.05 5.16 -0.11
Feb 5.06 5.18 -0.12 �-�,
Mar 5.11 5.21 _p,�� � a.s
Apr 5.09 5.22 -0.13
May 5.10 5.25 -0.15 a.2
Jun 5.11 5.25 -0.14 Sep06 Oct Nov Dec Jan07 Feb Mar Apr May Jun Jul Aug
Jul 5.10 5.26 -0.16
Aug 5.07 5.25 -0.19 •LAIF Yield ■RDA Yield
� ' Standard and Poors
" LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
August 31, 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 $ 4,061,507 5.13 101.91 $ 4,076,444 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,974,846 5.12 98.08 $ 3,992,051 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,983,576 5.12 98.08 $ 2,996,490 Aa3 A+
$ 2,000,000 MERRILL LYNCH 3.13 7/15/08 $ 1,960,188 5.49 97.45 $ 1,948,920 Aa3 AA-
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,018,370 5.00 101.01 $ 2,020,132 Aa3 A+
$ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,116,196 4.76 103.47 $ 3,103,986 Aa2 AA
$ 2,020,000 WELLS FARGO BANK 4.20 1/15/10 $ 1,987,736 4.92 97.79 $ 1,975,364 Aaa AAA
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,982,933 4.96 98.37 $ 1,967,406 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,983,984 5.18 99.08 $ 2,972,451 Aa1 AA-
$ 2,025,000 WELLS FARGO BANK 3.13 4/1/09 $ 1,975,037 4.76 97.29 $ 1,970,208 Aa1 AA-
S 27,170,000 Subtotal S 27,044,371 5.05 S 27,023,452
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,998,969 3.43 99.91 $ 2,997,188 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,059,609 4.88 103.36 $ 2,067,234 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,973,156 4.89 98.53 $ 1,970,625 Aaa AAA
� $ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,995,787 4.87 100.06 $ 2,001,250 Aaa AAA
$ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,935,880 4.65 100.53 $ 4,926,031 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,999,900 3.82 99.94 $ 2,998,125 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,946,672 4.79 99.34 $ 3,943,947 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,946,672 4.79 99.34 $ 3,943,947 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,458,868 5.59 99.31 $ 4,469,063 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,945,731 4.88 97.41 $ 1,948,125 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,990,657 4.84 99.69 $ 3,987,500 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,969,885 4.89 98.31 $ 1,971,166 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,959,276 5.49 100.50 $ 2,010,000 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,958,733 5.50 100.50 $ 2,010,000 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,978,325 5.16 99.34 $ 1,976,941 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,012,162 4.87 98.41 $ 2,016,344 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,863 5.07 99.98 $ 1,999,628 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,071,429 5.54 105.91 $ 2,118,125 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,867,602 5.54 105.91 $ 3,954,539 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,288,045 4.89 103.69 $ 4,308,216 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,977,654 4.87 98.81 $ 1,976,250 Aaa AAA
S 59,273,000 Subtotal S 59,333,875 4.90 S 59,594,242
Federal Agencies-Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1/08 $ 5,000,000 5.25 100.00 $ 5,000,000 Aaa AAA
S 5,000,000 Subtotal S 5,000,000 5.25 5 5,000,000
"U"= Unrated Page 7 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
August 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Local Government Investment Pool
$ 1,057,074 L.A.I.F. 0.00 9/1/07 $ 1,057,074 5.25 100.00 $ 1,057,074 U U
$ 4,681,202 L.A.I.F. (HOUSING) 0.00 9/1/07 $ 4,681,202 5.25 100.00 $ 4,681,202 U U
$ 6,085,636 L.A.I.F. BOND PROCEEDS 0.00 9/1/07 $ 6,085,636 5.25 100.00 $ 6,085,636 U U
; 11,823,912 Subtotal S 11,823,912 5.25 $ 11,823,912
Local Government Investment Pool
$ 16,425,793 C.A.M.P. 0.00 9/1/07 $ 16,425,793 5.20 100.00 $ 16,425,793 U AAA
S 16,425,793 Subtotal S 16,425,793 5.20 S 16,425,T93
Money Market Fund
$ 169,672,088 WF ADVANTAGE GOVT MMF 0.00 9/1/07 $ 169,672,088 5.10 100.00 $ 169,672,088 Aaa AAA
S 169,672,088 Subtotal S 169,672,088 5.10 3 169,672,088
Total Investments
, 3 289,364,792 E 289,300,039 5.07 $ 289,539,487
Cash
$ 225,229 HOUSiNG AUTH CHKG 0.00 9/1/07 $ 225,229 0.00 100.00 $ 225,229 U U
$ 339,115 HOUSING AUTH TRUST 0.00 9/1/07 $ 339,115 0.00 100.00 $ 339,115 U U
$ 564,344 Subtotal S 564,344 3 564,344
Total Investments and Cash
3 289,929,136 S 289,864,383 5 290,103,831
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.41%
JP MORGAN CHASE 2.41%
MERRILL LYNCH 0.67%
FIRST UNION NAT BANK 0.70%
WAL-MART 1.07%
WELLS FARGO BANK 3.06%
"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 August 31, 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 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 September 25, 2007,
��s �'��on, c.c.�r. �
City Treasurer
_ SUMMARY OF AUTHORIZED INVESTMENTS
California Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum G�uality %of City %of RDA
Code Investment Category Maturity Limit S8�P/Mdys Maturity Limit SB�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 Agency Debt 5 Years No Limit Not Authorized
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 16.6% 22.2%
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 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 Oa s 20% AAA 8�Aaa - -
53601 i Reverse Repos 92 Days 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 23.7% 9.4%
53601 k Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA 8,Aaa 30.0% 58.7%
53601(I) Trust Indenture Debt Not Authorized
53601 m Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA 8 Aaa AAA 8�Aaa
Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor 16.0% 5.7%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized
Securities AA(Security
LAIF No Limit No Limit 0.4% 4.1%
, (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 86.7% 100.0%
� (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds.
' Cerfi(ied California Municipal Treasurer Page 9 of 9