HomeMy WebLinkAboutInvstmnt Rprt - Jul '07 �'�'� CITY OF PALM DESERT
� �
FINANCE DEPARTMENT
, , INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: NIAMH ORTEGA, RECORDING SECRETARY�J��
DATE: OCTOBER 5, 2007
SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS
Please find attached the Compliance Analysis and Investment Reports for July and
August 2007 which were presented and approved at the regular September 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 COUNCIL ACTZON: pENIED
,APPROVED J� BY RDA
�iECEIVED t � OTHER -
ON 1 G-�5 -C�'�l
�SEETZNG D�?TE � " �-G
A�S: , �,� - ;�er � VERIFiED BY �k-��
NOES: '' Ot�gitls)on�le wiih City Clerk's Office
p,asEVT: , �
,ABSTAZN: rc� —
��tIFIED BY. .
�riginal on r^ile with City ClErk' s Offi��
G:\Finance�Niamh Ortega\Inveslment Commdtee�Memos�rklasseninvreport.wpd
��� City of Palm Desert ���
City and Redevelopment Agency Portfolios �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
July 2007
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
On August 7, the Federal Open Market Committee (FOMC) met, and left the Federal Funds Rate unchanged at 5.25 percent.
The Committee stated that its predominant focus remained on inflation, despite volatile financial markets, tighter credit
conditions, and an ongoing housing correction. On August 17, the FOMC reversed course, and cut the Discount Rate(Fed
borrowing rate) by 50 basis points to 5.75 percent. The cut was largely symbolic, although the Fed may have been trying to
gather information about which financial institutions were rn trouble as the subprime mortga�e crisis unfolded.
Two Bear Stearns mortgage-bond hedge funds spectacularly collapsed, and Lehman Brothers closed its subprime mortgage
operation after taking large losses. Global financial institutions in Asia and Europe also suffered losses from American
subprime mortgages in their portfolios. A liquidity crisis developed in the asset-backed securities market as investors
retreated. American, European, and Japanese central banks had to inject cash to ease pressure on money markets.
7he Dow Jones Industrial Average plunged, as investors fled to U.S. Treasury bills, triggering the biggest yield drop in 19
years. Several mortgage banks failed, with Bank of America investing in Countrywide Financial to forestall its bankruptcy.
7he City purchased $46 million of securities in August, concentrating in large U.S. commercial banks, and in the Federal
�arm Credit Bureau which has an excellent record of matching assets and liabilities. The City avoided buying housing
agency securities, due to the currerrt credit crisis.
��s ���o�, c.c.� r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
JUL-07 JUN-07 MAY-07 APR-07 MAR-07 FEB-07
CITY
Month-End Book Value"' $ 256,143 $ 243,098 $ 257,259 $ 248,864 $ 210,992 $ 217,861
Month-End Market Value"' $ 256,176 $ 242,909 $ 257,049 $ 248,991 $ 211,087 $ 218,014
Paper Gain (Loss) $ 33 $ (189) $ (210) $ 127 $ 95 $ 153
Prior Year Book Variance $ 85,202 $ 69,826 $ 77,552 $ 98,111 $ 61,048 $ 70,854
Interest Earnings $ 1,066 $ 1,029 $ 1,067 $ 952 $ 891 $ 859
Yield-To-Maturity 5.11% 5.11% 5.11% 5.13% 5.13% 5.08%
Weighted Maturity(Days) 308 324 355 376 428 444
Effective Duration 0.45 0.50 0.50 0.56 0.66 0.69
RDA
Month-End Book Value"' $ 293,026 $ 302,709 $ 311,195 $ 279,009 $ 303,532 $ 308,095
Month-End Market Value"' $ 293,073 $ 302,676 $ 311,011 $ 279,204 $ 303,707 $ 308,331
Paper Gain(Loss) $ 47 $ (33) $ (184) $ 195 $ 175 $ 236
Prior Year Book Variance $ 145,329 $ 158,249 $ 173,739 $ 136,331 $ 154,073 $ 154,443
Interest Earnings $ i,270 $ 1,274 $ 1,494 $ 7,203 $ 1,333 $ 1,18&
Yleld-TO-MatUfl1y 5.10% 5.11% 5.10% 5.09% 5.11% 5.07%
Weighted Maturity(Days) 279 274 267 293 269 278
• Effective Duration 0.39 0.40 0.42 0.49 0.47 0.56
"' Omits SLGSs.
City of Palm Desert -- Portfolio Characteristics
. July 31, 2007
.. .. .
Aqeinq Interval Market Value � �
< 1 M $ 75,376 General Fund Ageingl
i
< 2M 2,993
�3M ioo ----�----- --- -- -----..__.. -- ---- ;
<6M 1,983 ' � 80
� o
< 1 YR 9,963 53
<2YR 20,784 , 0 60 '
< 3YR 16.928 � 40 I
<4YR 9,918 I a° 20 � 15 12 � ;
< 5YR 4,125 � 2 � � 3 0 �
> 5YR � < 1 M <2M <3M <6M < < < < < > '
Total: S 142,070 �
; 1YR 2YR 3YR 4YR 5YR 5YR�
Credit Quality
Ratinqs" Market Value
AAA $ 225,390 A qqq
AA 11,109 6% 90%
A 14,929 AA
Unrated" 855 q°��
Total: $ 252,283
Sector Market Value Asset Allocation Agencies
� MMF $ 73,838 200�o MTNs
Agencies 49,423 �4��°
MTNs 34,051 �'�`'�'
:�:'
CAMP 57,990 MMF
RDA Loan 32,785 290�o CAMP
UB Sweep 3,341 23%
LAIF 855
CP - UB Sweep RDA Loan
Total: 5 252,283 1% 13%
Month Citv Yield LAIF Yield Variance Performance
Aug06 4.92 4.95 -0.02
Sep 4.96 5.02 -0.07 5.4 - - -
Oct 4.99 5.10 -0.11
Nov 5.01 5.13 -0.12
Dec 5.03 5.13 -0.09 �
Jan07 5.06 5.16 -0.10 d 4 9
Feb 5.08 5.18 -0.11 }
Mar 5.13 5.21 -0.08
Apr 5.13 5.22 -0.10 4.4
May 5.11 5.25 -0.13 Aug06Sep Oct Nov DecJan07Feb Mar Apr May Jun Jul
Jun 5.11 5.25 -0.14
Jul 5.11 5.26 -0.15 � " �
. ' Standard and Poors
" LAIF, and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
31 July 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 3/11/08 $ 3,008,348 5.08 99.33 $ 3,002,770 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,001,144 3.64 99.89 $ 2,996,628 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,956,079 5.01 100.95 $ 2,947,766 Aa2 AA-
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/OS $ 1,968,944 4.99 98.04 $ 1,960,898 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,991,421 5.63 99.00 $ 2,014,566 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,957,581 5.65 104.94 $ 1,984,455 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,028,335 5.67 102.60 $ 2,051,928 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,986,405 5.13 99.23 $ 1,984,688 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,986,319 5.25 99.20 $ 1,983,972 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,018,066 5.02 97.50 $ 3,002,914 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,966,815 5.18 97.93 $ 1,958,526 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,071,546 4.93 103.52 $ 2,070,358 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,175,914 5.13 103.31 $ 4,132,532 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,974,535 5.09 97.93 $ 1,958,692 Aa1 AA-
S 33,949,000 Subtotal 3 34,091,453 5.05 E 34,050,693
Federal Agencies-Coupon
$ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,999,897 3.79 99.94 $ 2,998,125 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,971,452 5.59 98.88 $ 2,966,250 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,976,620 4.87 99.72 $ 1,974,431 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,992,427 5.40 99.56 $ 2,986,875 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,010,953 4.87 97.88 $ 2,005,459 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,012,125 5.02 99.25 $ 3,007,275 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,010,554 4.87 98.72 $ 2,006,952 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,968,586 4.88 98.21 $ 1,964,116 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,996,272 5.06 99.94 $ 1,998,730 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,985,935 5.47 97.63 $ 2,013,028 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,999,315 3.63 99.91 $ 2,997,188 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,989,569 4.88 99.31 $ 1,986,250 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,931,177 5.47 97.88 $ 1,957,500 Aaa AAA
S 31,154,000 Subtotal S 30,844,880 4.87 S 30,862,178
Federal Agencies--Discount
$ 10,603,000 FED HOME LOAN MTG CORP 0.00 8/16/07 $ 10,517,045 523 99.79 $ 10,580,733 Aaa AAA
$ 10,603,000 Subtotal 5 10,517,045 5.23 S 10,580,733
Federal Agencies--Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,987,800 4.88 99.16 $ 1,983,125 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,735 5.06 99.99 $ 1,999,882 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 99.93 $ 1,998,630 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 5.38 2/1/10 $ 2,000,000 5.37 99.94 $ 1,998,750 Aaa AAA
; 8,000,000 Subtotal S 7,987,535 5.15 S 7,980,387
"U" = Unrated Page 3 of 9
City of Palm Desert
Portfolio Holdings
31 July 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P
Local Government Investment Pool
$ 854,503 L.A.I.F. 0.00 8/1/07 $ 854,503 5.26 100.00 $ 854,503 U U
S 854,503 Subtotal S 854,503 5.26 $ 854,503
Local Government Investment Pool
$ 56,310,895 C.A.M.P. 0.00 8/1/07 $ 56,310,895 5.21 100.00 $ 56,310,895 U AAA
$ 1,679,285 C.A.M.P.(HOUSING) 0.00 8/1/07 $ 1,679,285 5.21 100.00 $ 1,679,285 U AAA
E 57,990,180 Subtotal S 57,990,180 5.21 S 57,990,180
Money Market Fund
$ 73,837,982 WF ADVANTAGE GOVT MMF 0.00 8/1/07 $ 73,837,982 5.12 100.00 $ 73,837,982 Aaa AAA
S 73,837,982 Subtotal S 73,837,982 5.12 S 73,837,982
Money Market Fund
$ 3,341,197 CITY MAIN SWEEP 0.00 8/1/07 $ 3,341,197 3.76 100.00 $ 3,341,197 U U
� 3,341,197 Subtotal 3 3,341,197 3.76 S 3,341,197
City of Palm Desert
$ 32,785,480 CITY OF PALM DESERT 0.00 8/1/37 $ 32,785,480 5.26 100.00 $ 32,785,480 U U
S 32,785,480 Subtotal 3 32,785,480 5.26 S 32,785,480
Total Investments
S 252,515,342 $ 252,250,255 5.11 5 252,283,333
Cash
$ 1,919,896 CITY MAIN CHKG 0.00 8/1107 $ 1,919.896 0.00 100.00 $ 1,919,896 U U
$ 737,844 DESERT WILLOW CHKG 0.00 8/1/07 $ 737,844 0.00 100.00 $ 737,844 U U
$ 1,026,944 MONTEREY 170 CHKG 0.00 8/1/07 $ 1,026,944 0.00 100.00 $ 1,026,944 U U
$ 195,977 RECREATIONAL FAC CHKG 0.00 8/1/07 $ 195,977 0.00 100.00 $ 195,977 U U
$ 12,270 FALCON CREST HOA CHKG 0.00 8/1/07 $ 12,270 0.00 100.00 $ 12,270 U U
$ - ART, FOOD 8�WINE CHKG 0.00 8/1/07 $ - 0.00 100.00 $ - U U
S 3,892,930 Subtotal S 3,892,930 S 3,892,930
Total Investmests and Cash
S 256,408,272 S 256,143,185 E 256,176,263
"U"= Unrated Page 4 of 9
City of Palm Desert
Portfolio Holdings
31 July 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA FINANCE 1.17%
BANK ONE 1.17%
BANK OF AMERICA 1.15%
GENERAL ELECTRIC 3.13°/a
IBM 0.77%
JP MORGAN CHASE 0.77%
WACHOVIA 1.94%
WAL-MART 0.81%
WELLS FARGO BANK 2.38%
"U"= Unrated Page 5 of 9
Palm Desert Redevelopment Agency -- Portfolio Characteristics
. July 31, 2007
Aqeinq{nterval Market Value � Portfolio Ageing w/o SLGSsI 1
< 1 M $ 27,678 I
<2M 5.971
�3M �00 ----------------..._..-- --- ._.------- I
<6M _ 90
� 80
< 1 YR 16,928 � � 70
<2YR 32,649 � 0 50
< 3YR 16,659 0 30 25 30 �
<4YR 9,967 a 20 5 �5 i5 9 I
<5YR _ 10 0 0 0 0
0
> 5YR - < 1 M <2M <3M <6M < < < < < >
Tatal: a 109,852 ` 1YR 2YR 3YR 4YR 5YR 5YR I
l
ualit ` Market Value Credit Quality
AAA $ 262,609 qqq
AA 9,006 90%
A 8,958 Unrated"
Unrated " 11,824 4% qq A
Total: S 292,397 3%3o�a
Sector Market Value Asset Allocation
MMF $ 172,079 MMF
Agencies 64,471 65%
LAIF 11,824
MTNs 17,963
CAM P 26,060
CP - MTNs Agencies
Treasuries - �% LAIF 24%
TotaL• S 292,397 qo�o
Month RDA Yield LAIF Yield Variance Performance
Aug06 4.85 4.95 -0.10
Sep 4.94 5.02 -0.09 5.a -- ------- -------
Oct 4.95 5.10 -0.15
Nov 4.95 5.13 -�•18 \ 5.0
Dec 4.95 5.13 -0.18 �
Jan07 5.05 5.16 -0.11 �
Feb 5.06 5.18 -0.12 } 4.6
Mar 5.11 5.21 -0.11
Apr 5.09 5.22 -0.13 4.2
May 5.10 5.25 -0.15 Aug06Sep Oct Nov DecJan07 Feb Mar Apr May Jun Jul
Jun 5.11 5.25 -0.14
Jul 5.10 5.26 -0.16 ■LAIF Yield ■RDA Yield
. ' Standard and Poors
" LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
31 July 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Medium-Term Notes
$ 4,000,000 CITIGROUP 6.20 3/15/09 $ 4,064,837 5.13 101.63 $ 4,065,004 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,969,693 5.12 97.40 $ 3,964,156 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,979,708 5.12 97.40 $ 2,975,552 Aa3 A+
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,019,595 5.00 100.89 $ 2,017,874 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,981,445 4.96 98.40 $ 1,968,004 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,981,441 5.18 99.09 $ 2,972,823 Aa1 AA-
S 18,125,000 Subtotal S 17,996,719 5.10 $ 17,963,413
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,997,035 3.43 99.66 $ 2,989,688 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,061,974 4.88 103.06 $ 2,061,132 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,971,206 4.89 98.38 $ 1,967,500 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,995,605 4.87 99.75 $ 1,995,000 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,999,671 3.82 99.75 $ 2,992,500 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,944,786 4.79 99.16 $ 3,936,503 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,944,786 4.79 99.16 $ 3,936,503 Aaa AAA
• $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,457,177 5.59 98.88 $ 4,449,375 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,943,649 4.88 96.88 $ 1,937,500 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,989,902 4.84 99.56 $ 3,982,500 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,968,343 4.89 97.94 $ 1,963,647 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,958,314 5.49 99.50 $ 1,990,000 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,957,758 5.50 99.50 $ 1,990,000 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,976,471 5.16 9925 $ 1,975,075 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,010,821 4.87 97.88 $ 2,005,459 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,757 5.07 99.92 $ 1,998,430 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,073,388 5.54 105.31 $ 2,106,250 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,871,266 5.54 105.31 $ 3,932,369 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,293,483 4.89 103.34 $ 4,293,933 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,976,117 4.87 98.53 $ 1,970,625 Aaa AAA
S 54,373,000 Subtotal S 54,390,508 4.92 S 54,473,988
Federal Agencies-Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/15/08 $ 5,000,000 5.25 99.97 $ 4,998,438 Aaa AAA
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1/08 $ 5,000,000 5.25 99.97 $ 4,998,438 Aaa AAA
E 10,000,000 Subtotal S 10,000,000 5.25 S 9,996,875
Local Government Investment Pool
$ 1,057,074 L.A.I.F. 0.00 8/1/07 $ 1,057,074 5.26 100.00 $ 1,057,074 U U
$ 4,681,202 L.A.I.F. (HOUSING) 0.00 8/1/07 $ 4,681,202 5.26 100.00 $ 4,681,202 U U
$ 6,085,636 L.A.I.F. BOND PROCEEDS 0.00 8/1/07 $ 6,085,636 5.26 100.00 $ 6,085,636 U U
a 11,823,912 Subtotal S 11,823,912 5.26 S 11,823,912
'U" = Unrated Page 7 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
31 July 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P
Local Government Investment Fund
$ 26,059,755 C.A.M.P. 0.00 8/1/07 $ 26,059,755 5.21 100.00 $ 26,059,755 U AAA
S 26,059,755 Subtotal $ 26,059,755 5.21 $ 26,059,755
Money Market Fund
$ 172,078,748 WF ADVANTAGE GOVT MMF 0.00 8/1/07 $ 172,078,748 5.12 100.00 $ 172,078,748 Aaa AAA
5 172,078,748 Subtotal S 172,078,748 5.12 a 172,078,748
Total Investments
$ 292,460,415 3 292,349,642 5.10 S 292,396,690
Cash
$ 346,039 HOUSING AUTH CHKING 0.00 8/1/07 $ 346,039 0.00 100.00 $ 346,039 U U
. $ 330,571 HOUSING AUTH TRUST 0.00 8/1/07 $ 330,571 0.00 100.00 $ 330,571 U U
E 676,610 Subtotal $ 676,610 $ 676,610
' Total Investments and Cash
S 293,137,025 5 293,026,252 S 293,073,301
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.39%
JP MORGAN CHASE 2.37%
FIRST UNION NAT BANK 0.69°/a
WELLS FARGO BANK 1.69%
'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 July 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 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 August 28, 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 Quality %of City °/a of RDA
Code Investment Category Maturity Limit SB�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 Agenc Debt 5 Years No Limit Not Authorized
53601 e) Federal A encies 5 Years No Limit 5 Years 30% 6°/a 19.6% 22.0%
53601 Bankers's Acce tances 180 Da s 40% 180 Da s 40°/a A-1 &P-1 - -
53601 Commercial Paper 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°/a AAA 8�Aaa - -
53601(i) Reverse Repos 92 Days 20% NotAuthorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 13.5% 6.2%
53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA 8�Aaa 30.6% 58.9%
53601(I) Trust Indenture Debt NotAuthorized
53601(m Secured Bank Deposits 5 Years No Limit NotAuthorized
53601(k) Local Govemment AAA 8�Aaa AAA 8 Aaa
Investment Pools 90 Da s 20% or Advisor 90 Da s 20% (2) or Advisor 23.0% 8.9%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)8 Not Authorized
Securities AA Securit
LAIF No Limit No Limit 0.3% 4.0%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 87.0% 100.0%
(2) Maximum limit for mutual funds and local government investment pools,excluding bond proceeds.
' Certified California Municipal Treasurer Page 9 of 9