HomeMy WebLinkAboutInvestment Reports - May and June 2007D
CITY OF PALM DESERT
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: NIAMH ORTEGA, RECORDING SECRETARY'
DATE: AUGUST 14, 2007
SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS
Please find attached the Compliance Analysis and Investment Reports for may and
June 2007 which were presented and approved at the regular meetings 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)
CITY COUNCIL ACTION:
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� � City and Redevelopment Agency Portfolios � �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
May 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)will meet next on June 28. The futures market is forecasting that the Federal
Funds Rate will remain at 5.25%for the rest of 2007. Merrill Lynch is forecasting that rate reductions will occur in early 2008.
Beyond 2008, Alan Greenspan is predicting that world interest rates will rise over the next few years as the downward
pressure on prices and wages from China's and India's assimilation into the world economy lessens. This may explain why
the Bernanke FOMC is so focused on containing inflation.
The FOMC has maintained a "hawkish"stance despite five consecutive quarters of below-average economic growth, including
a near-recession level of 0.6% economic growth in the first quarter of 2007. The FOMC is clearly more interested in core
inflation that in economic growth. Consequently, there will probably not be a dramatic shift in FOMC thinking unless there is
a dramatic shift in the economic data.
� The U.S. Treasury yield curve recently shifted from an inverted pattern to a normal one, with the yield of a 10-year Treasury
Note slightly surpassing that of a 2-Year Treasury Note.This increase was triggered by global competition over interest rates;
concern over rising prices; and a fear that China is shifting its investment from Treasuries to private equity. Rising Treasury
. rates will further weaken the housing market by increasing the cost of adjustable-rate mortgages.
��s ���o�, c.c.,y r.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
MAY-07 APR-07 MAR-07 FEB-07 JAN-07 DEC-06
CITY
Month-End Book Value"* $ 257,259 $ 248,864 $ 210,992 $ 217,861 $ 237,367 $ 159,050
Month-End Market Value"' $ 257,049 $ 248,991 $ 211,087 $ 218,014 $ 237,168 $ 158,939
Paper Gain(Loss) $ (210) $ 127 $ 95 $ 153 $ (199) $ (111)
Prior Year Book Variance $ 77,552 $ 98,111 $ 61,048 $ 70,854 $ 89,718 $ 15,863
Interest Eamings $ 1,067 $ 952 $ 891 $ 859 $ 853 $ 650
Yield-To-Maturity 5.11°/a 5.13% 5.13% 5.08% 5.06% 5.03%
Weighted Maturity(Days) 355 376 428 444 402 495
Effective Duration 0.50 0.56 0.66 0.69 0.57 0.75
RDA
Month-End Book Value'*" $ 311,195 $ 279,009 $ 303,532 $ 308,095 $ 237,367 $ 111,068
Month-End Market Value"' $ 311,011 $ 279,204 $ 303,707 $ 308,331 $ 237,252 $ 111,060
Paper Gain(Loss) $ (184) $ 195 $ 175 $ 236 $ (115) $ (8)
Prior Year Book Variance $ 173,739 $ 136,331 $ 154,073 $ 154,443 $ 85,588 $ (14,327)
Interest Eamings $ 1,191 $ 1,203 $ 1,333 $ 1,186 $ 1,013 $ 465
Yield-To-Maturity 5.10% 5.09% 5.11% 5.07% 5.05% 4.95%
Weighted Maturity(Days) 267 293 269 278 302 668
Effective Duration 0.42 0.49 0.47 0.56 0.49 1.10
"" Omits SLGSs.
, City of Palm Desert-- Portfolio Characteristics
May 31, 2007
_....----
Aqeinq Interval Market Value � General Fund Ageingl
< 1 M $ 62,750 �
<2M 3,779 �
< 3M 5,968 100 -- _------- �
<6M 2,987 ( 80
< 1 YR 9,954 � �
<2YR 20,818 � 0 60 45
�o
<3YR 17,021 � 40
<4YR 12,069 a 20 3 4 2 7 15 �2 9 3
< 5YR 4,191 �
>5YR - �
< 1M <2M <3M <6M < < < < < >
Total: $ 139,537 � 1YR 2YR 3YR 4YR 5YR 5YR
\
Ratinqs"' Market Value Credit Quality
AAA $ 179,020 �`
AA 11,103 B 83%
A 14,897 5%
. B 10,113 A
7%
Unrated'* 33,629 qq
Total: $ 248,762 5%
Sector Market Value Asset Allocation Agencies
MMF $ 79,566 ��% MTNs
�: '�
Agencies 42,472 �g��o
MTNs 44,099
LG I P 48,996 M M F
RDA Loan 32,785 32%
LAI F 844 LG I P
CP _ 20%
Total: 5 248,762 RDA Loan
13%
Month Citv Yield LAIF Yield Variance Performance
Jun06 4.72 4.70 0.02
Jul 4.86 4.85 0.01 5.4 -- -----
Aug 4.92 4.95 -0.02
Sep 4.96 5.02 -0.07
Oct 4.99 5.10 -0.11 °
Nov 5.01 5.13 -0.12 � 4 9
d
Dec 5.03 5.13 -0.09 }
Jan07 5.06 5.16 -0.10
Feb 5.08 5.18 -0.11 4.4
Mar 5.13 5.21 -0.08 Jun06 Jul Aug Sep Oct Nov Dec Jan07 Feb Mar Apr May
Apr 5.13 5.22 -0.10
May 5.11 5.25 -0.13 �` ,'` " ■� `�, ' '
` Standard and Poors
*' LAIF, and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
May 31, 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 $ 3,004,352 5.08 99.12 $ 2,996,491 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,003,431 3.64 99.67 $ 2,990,064 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,959,987 5.01 100.92 $ 2,946,809 Aa2 AA-
$ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,001,487 5.75 100.01 $ 3,000,219 61 B
$ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,501,239 5.75 100.01 $ 2,500,182 61 B
$ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,615,498 5.10 100.01 $ 4,612,336 61 B
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,964,651 4.99 97.71 $ 1,954,106 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,989,167 5.63 98.64 $ 2,007,302 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,960,955 5.65 104.66 $ 1,979,145 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,029,662 5.67 102.31 $ 2,046,102 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,981,873 5.13 99.03 $ 1,980,686 A1 A+
, $ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,981,313 5.25 99.05 $ 1,980,920 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,011,382 5.02 97.13 $ 2,991,543 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,961,491 5.18 97.85 $ 1,956,940 Aa3 A+
- $ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,077,435 4.93 103.13 $ 2,062,688 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,183,244 5.13 103.43 $ 4,137,192 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,973,131 5.09 97.80 $ 1,956,068 Aa1 AA-
$ 44,061,000 Subtotal $ 44,200,298 5.15 $ 44,098,793
Federal Agencies--Coupon
$ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,999,457 3.79 99.69 $ 2,990,625 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,969,198 5.59 98.41 $ 2,952,188 Aaa AAA
$ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,976,207 4.87 99.22 $ 1,964,531 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,991,293 5.40 99.16 $ 2,974,688 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,008,279 4.87 97.31 $ 1,993,933 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,007,227 5.02 99.00 $ 2,999,700 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,008,641 4.87 98.16 $ 1,995,517 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,966,307 4.88 97.67 $ 1,953,434 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,995,777 5.06 99.51 $ 1,990,174 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,981,633 5.47 97.13 $ 2,002,718 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,996,377 3.63 99.56 $ 2,986,875 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,988,794 4.88 98.81 $ 1,976,250 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,927,403 5.47 97.34 $ 1,946,875 Aaa AAA
5 31,154,000 Subtotal $ 30,816,593 4.87 S 30,727,507
Federal Agencies-Discount
$ 3,801,000 FED HOME LOAN MTG CORP 5.11 7/9/07 $ 3,778,879 5.21 99.46 $ 3,780,475 Aaa AAA
a 3,801,000 Subtotal S 3,778,879 5.21 $ 3,780,475
Federal Agencies--Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,985,690 4.88 98.81 $ 1,976,250 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,694 5.06 99.69 $ 1,993,746 Aaa AAA
Unrated="U" Page 3 of 9
City of Palm Desert
Portfolio Holdings
May 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P
Federal Agencies--Callable (continued)
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 99.84 $ 1,996,862 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 5.38 2/1/10 $ 2,000,000 5.37 99.88 $ 1,997,500 Aaa AAA
$ 5,000,000 Subtotal $ 7,985,384 5.15 $ 7,964,358
Local Government Investment Pool
$ 843,608 L.A.I.F. 0.00 6/1/07 $ 843,608 5.25 100.00 $ 843,608 U U
$ 843,608 Subtotal $ 843,608 5.25 S 843,608
Local Government Investment Pool
$ 47,331,336 C.A.M.P. 0.00 6/1/07 $ 47,331,336 5.19 100.00 $ 47,331,336 U AAA
$ 1,664,761 C.A.M.P. (HOUSING) 0.00 6/1/07 $ 1,664,761 5.19 100.00 $ 1,664,761 U AAA
� $ 48,996,097 Subtotal S 48,996,097 5.19 $ 48,996,097
Money Market Fund
$ 79,566,446 WF ADVANTAGE GOVT MMF 0.00 6/1/07 $ 79,566,446 5.12 100.00 $ 79,566,446 Aaa AAA
$ 79,566,446 Subtotal $ 79,566,446 5.12 $ 79,566,446
Money Market Fund
$ 3,183,594 HIGHMARK SWEEP 0.00 6/1/2007 $ 3,183,594 4.36 100.00 $ 3,183,594 Aaa AAA
$ 3,183,594 Subtotal $ 3,183,594 4.36 5 3,183,593.96
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 6/1/37 $ 32,785,480 5.25 100.00 $ 32,785,480 U U
$ 32,785,480 Subtotal S 32,785,480 5.25 5 32,785,480
Total Investments
$ 252,391,225 $ 252,156,380 5.11 $ 251,946,357
Cash
$ 2,977,627 CITY MAIN CHKG 0.00 6/1/07 $ 2,977,627 0.00 100.00 $ 2,977,627 U U
$ 1,184,156 DESERT WILLOW CHKG 0.00 6/1/07 $ 1,184,156 0.00 100.00 $ 1,184,156 U U
$ 627,855 MONTEREY 170 CHKG 0.00 6/1/07 $ 627,855 0.00 100.00 $ 627,855 U U
$ 312,795 RECREATIONAL FAC CHKG 0.00 6/1/07 $ 312,795 0.00 100.00 $ 312,795 U U
$ 5,102,434 Subtotal $ 5,102,434 � 5,102,434
Total Investments and Cash
a 257,493,659 $ 257,258,814 $ 257,048,791
Unrated ="U" Page 4 of 9
City of Palm Desert
Portfolio Holdings
May 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
°/a of Portfolio
Corporate Issuers (Market Value)
AMERICAN HONDA FINANCE 1.17%
BANK ONE 1.16%
BANK OF AMERICA 1.15%
FORD MOTOR CRED►T CORP 3.93%
GENERAL ELECTRIC 3.11%
IBM 0.77%
JP MORGAN CHASE 0.77%
WACHOVIA 1.93%
WAL-MART 0.80%
WELLS FARGO BANK 2.37%
Unrated ="U" Page 5 of 9
Palm Desert Redevelopment Agency-- Portfolio Characteristics
May 31, 2007
_
Aqeinp Interval Market Value r
< 1M $ 2,354 ; Portfolio Ageing w/o SLGSsI I
<2M 35,735 � �
�3M ' 100 - ---- -------------------------- +
<6M 5,952 � gp �
< 1 YR 14,938 0 6o I
<2YR 32,773 ' '0 50 ?
<3YR 18,757 0 30 30 27 (
<4YR 10,114 a 20 2 � 5 12 16 $ 0 0 �
<5YR _ 10 �
i 0 - - j
>5YR - ! < 1 M <2M <3M <6M < < < < < > ,
Total: $ 120,623 1YR 2YR 3YR 4YR 5YR 5YR '
\ i
Qualitv' Market Value Credit Quality
AAA $ 278,656 qqq
AA 8,987 90%
A 8,912 Unrated'"
, Unrated" 13,482 4% AA A
Total: $ 310,037 3% 30�0 •
Sector Market Value Asset Allocation
MMF $ 177,979 MMF
58%
Agencies 100,007
LAIF 13,482
MTNs 17,899
LGIP 670
CP - MTNs Agencies
Treasuries - 6% LAIF 32%
Total: a 310,037 qo�o
Month RDA Yleld LAIF Yield Variance Performance
Jun06 4.69 4.70 -0.01
Jul 4.82 4.85 -0.03 5.4 -- - ---
Aug 4.85 4.95 -0.10
Sep 4.94 5.02 -0.09
0 5.0
Oct 4.95 5.10 -0.15
Nov 4.95 5.13 -0.18 a
Dec 4.95 5.13 -0.18 � 4.6
Jan07 5.05 5.16 -0.11
Feb 5.06 5.18 -0.12 4.2
Mar 5.11 5.21 -0.11 Jun06 Jul Aug Sep Oct Nov Dec Jan07 Feb Mar Apr May
Apr 5.09 5.22 -0.13
May 5.10 5.25 -0.15 ■LAIF Yield ■RDA Yield
` Standard and Poors
" LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
May 31, 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 $ 4,071,499 5.13 101.39 $ 4,055,636 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,959,387 5.12 96.80 $ 3,939,891 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,971,973 5.12 96.80 $ 2,957,338 Aa3 A+
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,022,044 5.00 100.73 $ 2,014,670 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,978,468 4.96 98.16 $ 1,963,192 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,976,357 5.18 98.95 $ 2,968,461 Aa1 AA-
S 18,125,000 Subtotal S 17,979,728 5.10 $ 17,899,188
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,993,168 3.43 99.25 $ 2,977,500 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,066,705 4.88 102.82 $ 2,056,302 Aaa AAA
. $ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,967,306 4.89 97.75 $ 1,955,000 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,995,239 4.87 99.25 $ 1,985,000 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,999,211 3.82 99.47 $ 2,984,063 Aaa AAA
� $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,941,013 4.79 98.72 $ 3,919,134 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,941,013 4.79 98.72 $ 3,919,134 Aaa AAA
$ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,453,797 5.59 98.41 $ 4,428,281 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,939,485 4.88 96.28 $ 1,925,625 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,988,391 4.84 99.16 $ 3,966,250 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,965,258 4.89 97.38 $ 1,952,369 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,956,390 5.49 99.09 $ 1,981,875 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,955,808 5.50 99.09 $ 1,981,875 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,972,765 5.16 99.00 $ 1,970,100 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,008,139 4.87 97.31 $ 1,993,933 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,545 5.07 99.65 $ 1,993,068 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,077,305 5.54 105.19 $ 2,103,750 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,878,593 5.54 105.19 $ 3,927,701 Aaa AAA
$ 4,155,000 FED NAT MTG ASSOC 6.63 9/15/09 $ 4,304,358 4.89 103.13 $ 4,284,844 Aaa AAA
$ 2,000,000 FED NAT MTG ASSOC 3.88 11/17/08 $ 1,973,042 4.87 97.94 $ 1,958,750 Aaa AAA
a 54,373,000 Subtotal $ 54,375,532 4.92 $ 54,264,554
Federal Agencies-Discount
$ 35,944,000 FED HOME LOAN MTG CORP 5.11 7/9/07 $ 35,734,816 5.21 99.46 $ 35,749,905 Aaa AAA
$ 35,944,000 Subtotal $ 35,734,816 5.21 $ 35,749,905
Federal Agencies--Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/15/08 $ 5,000,000 5.25 99.91 $ 4,995,313 Aaa AAA
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1/08 $ 5,000,000 5.25 99.94 $ 4,996,875 Aaa AAA
$ 10,000,000 Subtotal $ 10,000,000 5.25 a 9,992,188
"U"= Unrated Page 7 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
May 31, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P
Local Government Investment Pool
$ 1,043,493 L.A.I.F. 0.00 6/1/07 $ 1,043,493 5.25 100.00 $ 1,043,493 U U
$ 4,621,074 L.A.I.F.(HOUSING) 0.00 6/1/07 $ 4,621,074 5.25 100.00 $ 4,621,074 U U
$ 7,817,768 L.A.I.F. BOND PROCEEDS 0.00 6/1/07 $ 7,817,768 5.25 100.00 $ 7,817,768 U U
$ 13,482,335 Subtotal a 13,482,335 5.25 $ 13,482,335
Local Government Investment Pool
$ 669,768 C.A.M.P. 0.00 6/1/07 $ 669,768 5.21 100.00 $ 669,768 U AAA
$ 669,768 Subtotal $ 669,768 5.21 $ 669,768
Money Market Fund
$ 177,978,912 WF ADVANTAGE GOVT MMF 0.00 6/1/07 $ 177,978,912 5.11 100.00 $ 177,978,912 Aaa AAA
. $ 177,978,912 Subtotal $ 177,978,912 5.11 S 177,978,912
Total Investments
E 310,573,015 $ 310,229,091 5.10 $ 310,036,850
Cash
$ 646,533 HOUSING AUTH CHKG 0.00 6/1/07 $ 646,533 0.00 100.00 $ 646,533 U U
$ 327,346 HOUSING AUTH TRUST 0.00 6/1/07 $ 327,346 0.00 100.00 $ 327,346 U U
$ 973,879 Subtotal $ 973,879 5 973,879
Total Investments and Cash
$ 311,546,895 $ 311,194,971 $ 311,010,729
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.30%
JP MORGAN CHASE 2.22%
FIRST UNION NAT BANK 0.65%
WELLS FARGO BANK 1.59%
"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
govemed 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 May 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 Ciry 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 June 26, 2007,
,�'a.ccLS. Ciu�osz C.C.�1.T. �
• City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
California Government Code City Investment Policy
CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %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 NotAuthorized
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% 16.9% 32.3%
53601 � Bankers's Acceptances 180 Da s 40% 180 Days 40% 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% AAA 8�Aaa - -
53601 i Reverse Re os 92 Days 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 17.5% 5.8%
53601(k) Mutual Funds 90 Da s 20% AAA&Aaa 90 Days 20% (2) AAA&Aaa 31.6% 57.4%
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&Aaa
Investment Pools 90 Da s 20% or Advisor 90 Days 20% (2) or Advisor 19.4% 0.2%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized
Securities AA Securit
LAIF No Limit No Limit 0.3% 4.4%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 85.7% 100.0%
(2) Maximum limit for mutual funds and local ovemment investment pools, excludin bond proceeds.
* Certified California Municipal Treasurer Page 9 of 9
��� City of Palm Desert ���
� � City and Redevelopment Agency Portfolios � �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
June 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 June 28, and left the Federal Funds Rate unchanged at 5.25%. The
FOMC noted that while economic growth had moderated during the first half of the year, a sustained moderation in inflation
pressures had not yet happened. Analysts expect that the FOMC will keep short-term interest rates on hold well into 2008,
barring an unusually severe downturn in the housing market. The FOMC's currently believes that housing and credit problems
in the subprime market will probably not affect the economy's underpinnings in a signficant way.
The FOMC is focused on two resource utilization measures that are still at high levels: 1) The Unemployment Rate at
4.5%; and 2)the Capacity Utilization Rate which will probably reach 81.6 percent. The FOMC is concerned that oil prices,
which are above $70/barrel, may pass through to other goods and services, thereby raising core inflation.
Economists, however, believe that price shocks to food and energy are now more short-lived that in the past. Wage-price
spiral inflation is now less likely, due to weakened worker bargaining power. Globalization is restraining unit labor costs,
as evidenced by sharply declining union membership rates and minimal strike action.
Due to declining expectations about a rate cut, the yield curve has moved to a more normal shape, with the highest rates
being found in the 30-year sector.
,�'aul�S. liLlr�on, C.C.�1.r
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
JUN-07 MAY-07 APR-07 MAR-07 FEB-07 JAN-07
CITY
Month-End Book Value"' $ 243,098 $ 257,259 $ 248,864 $ 210,992 $ 217,861 $ 237,367
Month-End MarketValue"' $ 242,909 $ 257,049 $ 248,991 $ 211,087 $ 218,014 $ 237,168
Paper Gain(Loss) $ (189) $ (210) $ 127 $ 95 $ 153 $ (199)
Prior Year Book Variance $ 69,826 $ 77,552 $ 98,111 $ 61,048 $ 70,854 $ 89,718
Interest Earnings $ 1,029 $ 1,067 $ 952 $ 891 $ 859 $ 853
Yield-To-Maturity 5.11% 5.11% 5.13% 5.13% 5.08% 5.06%
Weighted Maturity(Days) 324 355 376 428 444 402
Effective Duration 0.50 0.50 0.56 0.66 0.69 0.57
RDA
Month-End Book Value*" $ 302,709 $ 311,195 $ 279,009 $ 303,532 $ 308,095 $ 237,367
Month-End Market Value*" $ 302,676 $ 311,011 $ 279,204 $ 303,707 $ 308,331 $ 237,252
Paper Gain(Loss) $ (33) $ (184) $ 195 $ 175 $ 236 $ (115)
Prior Year Book Variance $ 158,249 $ 173,739 $ 136,331 $ 154,073 $ 154,443 $ 85,588
Interest Eamings $ 1,271 $ 1,191 $ 1,203 $ 1,333 $ 1,186 $ 1,013
Yield-To-Maturity 5.11% 5.10% 5.09% 5.11% 5.07% 5.05%
Weighted Maturity(Days) 274 267 293 269 278 302
Effective Duration 0.40 0.42 0.49 0.47 0.56 0.49
*" Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
- June 30, 2007
,--_ ---- ___ _ --- __
Aqeing Interval Market Value
< 1 M $ 47,860 General Fund Ageingl i
<2M 16,520 j
� �oo _._ -� ;
<3M 2,993 I ----------------------------..._._- -- --
<6M - ( � 80 ,
< 1 YR g,g6g ' ° �
<2YR 20,766 � 0 60 j
� 0 37 � �
<3YR 16,923 � 40 i j
0
<4YR 11,919 i a 2p 13 $ 16 13 g �
<5YR 4,125 � � 2 � n � o �
>5YR ' < �M <2M <3M <6M < < < < < > I
Total: $ 131,074 1YR 2YR 3YR 4YR 5YR 5YR j
`-_ _ __ ---- -------------------�
Credit Quality
Ratinqs' Market Value
AAA $ 180,674 �
AA 11,087 A 88%
7%
A 14,917
AA
Unrated"`* 33,629 5o�a
Total: $ 240,307
Sector Market Value Asset Allocation Agencies
MMF $ 75,216 22%
Agencies 53,036 LAIF r::� ;� MTNs
MTNs 33,975 0% 14%
LGIP 42,108
RDA Loan 32,785 MMF
UB Sweep 2,343 31% LGIP
LAIF 844 18%
CP - UB Sweep RDA Loan
Total: S 240,307 �% 14%
Month City Yield LAIF Yield Variance Performance
Ju106 4.86 4.85 0.01
Aug 4.92 4.95 -0.02 5.4 - - --- --------------
Sep 4.96 5.02 -0.07
Oct 4.99 5.10 -0.11
Nov 5.01 5.13 -0.12 �
Dec 5.03 5.13 -0.09 d 4 9
Jan07 5.06 5.16 -0.10 }
Feb 5.08 5.18 -0.11
Mar 5.13 5.21 -0.08 4.4
Apr 5.13 5.22 -0.10 Ju106 Aug Sep Oct Nov DecJan07 Feb Mar Apr May Jun
May 5.11 5.25 -0.13
Jun 5.11 5.25 -0.14 s �
' Standard and Poors
. *" LAIF, and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
June 30, 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 $ 3,006,350 5.08 99.21 $ 2,999,103 A1 A+
$ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,002,287 3.64 99.78 $ 2,993,406 Aa3 A+
$ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,958,033 5.01 100.80 $ 2,943,308 Aa2 AA-
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,966,798 4.99 97.80 $ 1,956,072 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,990,294 5.63 98.45 $ 2,003,364 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,959,268 5.65 104.40 $ 1,974,202 Aaa AAA
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,028,998 5.67 101.93 $ 2,038,588 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,984,139 5.13 99.16 $ 1,983,218 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,983,816 5.25 99.17 $ 1,983,330 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17/09 $ 3,014,724 5.02 97.37 $ 2,999,082 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8/15/08 $ 1,964,153 5.18 97.92 $ 1,958,488 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,074,490 4.93 103.13 $ 2,062,534 Aa2 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,179,579 5.13 103.13 $ 4,125,028 Aa1 AA-
' $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,973,833 5.09 97.79 $ 1,955,736 Aa1 AA-
$ 33,949,000 Subtotal S 34,086,763 5.05 $ 33,975,459
Federal Agencies-Coupon
$ 3,000,000 FEDERAL HOME LOAN BANK 3.70 8/15/07 $ 2,999,677 3.79 99.78 $ 2,993,438 Aaa AAA
$ 3,000,000 FEDERAL HOME LOAN BANK 4.38 9/11/09 $ 2,970,325 5.59 98.34 $ 2,950,313 Aaa AAA
$ 1,980,000 FEDERAL HOME LOAN BANK 4.75 12/12/08 $ 1,976,414 4.87 99.31 $ 1,966,388 Aaa AAA
$ 3,000,000 FEDERAL HOME LOAN BANK 4.63 9/12/08 $ 2,991,860 5.40 99.25 $ 2,977,500 Aaa AAA
$ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 2,009,616 4.87 9728 $ 1,993,293 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,009,676 5.02 99.09 $ 3,002,541 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,009,597 4.87 98.19 $ 1,996,152 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,967,447 4.88 97.62 $ 1,952,488 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,996,024 5.06 99.60 $ 1,991,906 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,983,784 5.47 97.03 $ 2,000,784 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,997,846 3.63 99.72 $ 2,991,563 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,989,181 4.88 98.75 $ 1,975,000 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,929,290 5.47 97.28 $ 1,945,625 Aaa AAA
$ 31,154,000 Subtotal S 30,830,737 4.87 a 30,736,989
Federal Agencies--Discount
$ 3,801,000 FED HOME LOAN MTG CORP 0.00 7/9/07 $ 3,778,879 5.21 99.90 $ 3,797,199 Aaa AAA
$ 10,603,000 FED HOME LOAN MTG CORP 0.00 8/16/07 $ 10,517,045 5.23 99.36 $ 10,535,141 Aaa AAA
b 14,404,000 Subtotal $ 14,295,924 5.23 a 14,332,340
"U"= Unrated Page 3 of 9
City of Palm Desert
Portfolio Holdings
June 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Federal Agencies--Callable
$ 2,000,000 FEDERAL HOME LOAN BANK 4.20 7/18/08 $ 1,986,745 4.88 98.91 $ 1,978,125 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,715 5.06 99.74 $ 1,994,890 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 99.80 $ 1,996,092 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 5.38 2/1/10 $ 2,000,000 5.37 99.88 $ 1,997,500 Aaa AAA
$ 8,000,000 Subtotal $ 7,986,460 5.15 E 7,966,607
Local Government Investment Pool
$ 843,608 L.A.I.F. 0.00 7/1/07 $ 843,608 5.25 100.00 $ 843,608 U U
$ 843,608 Subtotal $ 843,608 5.25 $ 843,608
Local Government Investment Pool
$ 40,436,588 C.A.M.P. 0.00 7/1/07 $ 40,436,588 5.21 100.00 $ 40,436,588 U AAA
$ 1,671,885 C.A.M.P. (HOUSING) 0.00 7/1/07 $ 1,671,885 5.21 100.00 $ 1,671,885 U AAA
$ 42,108,473 Subtotal $ 42,108,473 5.21 S 42,108,473
. Money Market Fund
$ 75,215,073 WF ADVANTAGE GOVT MMF 0.00 7/1/07 $ 75,215,073 5.13 100.00 $ 75,215,073 Aaa AAA
$ 75,215,073 Subtotal S 75,215,073 5.13 S 75,215,073
Money Market Fund
$ 2,342,910 HIGHMARK SWEEP 0.00 7/1/07 $ 2,342,910 3.75 100.00 $ 2,342,910 Aaa AAA
$ 2,342,910 Subtotal $ 2,342,910 3.75 $ 2,342,910
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 7/1/37 $ 32,785,480 5.25 100.00 $ 32,785,480 U U
$ 32,785,480 Subtotal $ 32,785,480 5.25 $ 32,785,480
Total Investments
$ 240,802,544 $ 240,495,428 5.11 $ 240,306,939
Cash
$ 705,596 CITY MAIN CHKG 0.00 7/1/07 $ 705,596 0.00 100.00 $ 705,596 U U
$ 1,055,816 DESERT WILLOW CHKG 0.00 7/1/07 $ 1,055,816 0.00 100.00 $ 1,055,816 U U
$ 627,956 MONTEREY 170 CHKG 0.00 7/1/07 $ 627,956 0.00 100.00 $ 627,956 U U
$ 207,091 RECREATIONAL FAC CHKG 0.00 7/1/07 $ 207,091 0.00 100.00 $ 207,091 U U
$ 5,742 CITY/FALCON CREST HOA 0.00 7/1/07 $ 5,742 0.00 100.00 $ 5,742 U U
$ - ART, FOOD 8�WINE CHKG 0.00 7/1/07 $ - 0.00 100.00 $ - U U
$ 2,602,200 Subtotal a 2,602,200 $ 2,602,200
"U"= Unrated Page 4 of 9
City of Palm Desert
Portfolio Holdings
June 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Total Investments and Cash
$ 243,404,745 $ 243,097,629 $ 242,909,139
%of Portfolio
Corporate Issuers (Market Value)
" AMERICAN HONDA FINANCE 1.23%
BANK ONE 1.23%
BANK OF AMERICA 1.21%
GENERAL ELECTRIC 3.28%
I BM 0.82%
JP MORGAN CHASE 0.82%
WACHOVIA 2.04%
WAL-MART 0.85%
WELLS FARGO BANK 2.50%
"U"= Unrated Page 5 of 9
Palm Desert Redevelopment Agency-- Portfolio Characteristics
' June 30, 2007
Aqeinq Interval Market Value � �
< 1 M $ 38,268 Portfolio Ageing w/o SLGSsI I
<2M -
<3M 5,971 100 --- �
90 j
<6M - ... 80
< 1 YR 14,934 � �� j
<2YR 32,681 0 50 !
<3YR 18,612 ' 0 30 32 27 I
<4YR 9,967 ', a 20 5 12 15 g
< 5YR _ � 10 0 0 0 0
� 0
> 5YR - < 1 M <2M <3M <6M < < < < < >
Total: a 120,433 � 1YR 2YR 3YR 4YR 5YR 5YR
--------__..-_._.---------__..-...___..r
ualit ' Market Value Credit Givality
AAA $ 270,974 ,qq,q
AA 8,992 90%
A 8,926 Unrated"
Unrated" 12,955 4��° AA A
Total: $ 301,847 3��° 3%
Sector Market Value Asset Allocation
MMF $ 170,146
Agencies 100,154 MMF
LAIF 12,955 57/o
MTNs 17,919
LGIP 673
CP - Agencies
MTNs 33%
Treasuries - 6% LAIF
Total: $ 301,847 4%
Month RDA Yield LAIF Yleld Variance Performance
Ju106 4.82 4.85 -0.03
Aug 4.85 4.95 -0.10 5.4 - --- -
Sep 4.94 5.02 -0.09
Oct 4.95 5.10 -0.15 O 5.0
Nov 4.95 5.13 -0.18
Dec 4.95 5.13 -0.18 d
Jan07 5.05 5.16 -0.11 } 4.6
Feb 5.06 5.18 -0.12
Mar 5.11 5.21 -0.11 4.2
Apr 5.09 5.22 -0.13 Ju106 Aug Sep Oct Nov DecJan07 Feb Mar Apr May Jun
May 5.10 5.25 -0.15
Jun 5.11 5.25 -0.14 ■�AIF Yield ■RDA Yield
` Standard and Poors
*' LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
June 30, 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 $ 4,068,168 5.13 101.34 $ 4,053,752 Aa1 AA-
$ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,964,540 5.12 97.00 $ 3,948,059 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,975,840 5.12 97.00 $ 2,963,469 Aa3 A+
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,020,820 5.00 100.74 $ 2,014,832 Aa3 A+
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,979,956 4.96 98.38 $ 1,967,534 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/08 $ 2,978,899 5.18 99.04 $ 2,971,167 Aa1 AA-
$ 18,125,000 Subtotal $ 17,988,223 5.10 $ 17,918,813
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,995,101 3.43 99.44 $ 2,983,125 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,064,340 4.88 102.65 $ 2,052,930 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,969,256 4.89 97.94 $ 1,958,750 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,995,422 4.87 99.25 $ 1,985,000 Aaa AAA
� $ 3,000,000 FED HOME LOAN BANK 3.38 9/14/07 $ 2,999,441 3.82 99.59 $ 2,987,813 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,942,900 4.79 98.84 $ 3,924,097 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,942,900 4.79 98.84 $ 3,924,097 Aaa AAA
' $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,455,487 5.59 98.34 $ 4,425,469 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,941,567 4.88 96.28 $ 1,925,625 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,989,147 4.84 99.25 $ 3,970,000 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,966,801 4.89 97.41 $ 1,952,995 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,957,352 5.49 98.84 $ 1,976,875 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,956,783 5.50 98.84 $ 1,976,875 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,974,618 5.16 99.09 $ 1,971,966 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,009,480 4.87 97.28 $ 1,993,293 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,998,651 5.07 99.71 $ 1,994,148 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,075,347 5.54 104.88 $ 2,097,500 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,874,929 5.54 104.88 $ 3,916,033 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,298,920 4.89 102.94 $ 4,277,053 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,974,579 4.87 98.09 $ 1,961,875 Aaa AAA
5 54,373,000 Subtotal $ 54,383,020 4.92 S 54,255,517
Federal Agencies--Discount
$ 35,944,000 FED HOME LOAN MTG CORP 5.11 7/9/07 $ 35,734,816 5.21 99.90 $ 35,908,054 Aaa AAA
$ 35,944,000 Subtotal $ 35,734,816 5.21 $ 35,908,054
Federal Agencies--Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/15/08 $ 5,000,000 5.25 99.91 $ 4,995,313 Aaa AAA
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1/08 $ 5,000,000 5.25 99.91 $ 4,995,313 Aaa AAA
$ 10,000,000 Subtotal $ 10,000,000 5.25 S 9,990,625
"U"= Unrated Page 7 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
June 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's SB�P
Local Government Investment Pool
$ 4,621,074 L.A.I.F. 0.00 7/1/07 $ 4,621,074 5.25 100.00 $ 4,621,074 U U
$ 1,043,493 L.A.I.F.(HOUSING) 0.00 7/1/07 $ 1,043,493 5.25 100.00 $ 1,043,493 U U
$ 7,290,848 L.A.I.F. BOND PROCEEDS 0.00 7/1/07 $ 7,290,848 5.25 100.00 $ 7,290,848 U U
$ 12,955,415 Subtotal $ 12,955,415 5.25 $ 12,955,415
Local Government Investment Pool
$ 672,634 C.A.M.P. 0.00 7/1/07 $ 672,634 5.21 100.00 $ 672,634 U AAA
$ 672,634 Subtotal S 672,634 5.21 $ 672,634
Money Market Fund
$ 170,146,128 WF ADVANTAGE GOVT MMF 0.00 7/1/07 $ 170,146,128 5.13 100.00 $ 170,146,128 Aaa AAA
a 170,146,128 Subtotal $ 170,146,128 5.13 $ 170,146,128
'Total Investments
$ 302,216,177 $ 301,880,237 5.11 $ 301,847,186
Cash
$ 501,493 HOUSING AUTH CHKG 0.00 7/1/07 $ 501,493 0.00 100.00 $ 501,493 U U
$ 327,109 HOUSING AUTH TRUST 0.00 7/1/07 $ 327,109 0.00 100.00 $ 327,109 U U
S 828,602 Subtotal $ 828,602 5 828,602
Total Investments and Cash
a 303,044,779 S 302,708,839 $ 302,675,788
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.34%
JP MORGAN CHASE 2.28%
FIRST UNION NAT BANK 0.67%
WELLS FARGO BANK 1.63°!0
. "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 June 30, 2007,the City and the RDA investment portfolios were in compliance with all applicable
federal, state, and local laws and regulations. The Ciry 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 July 24,2007,
,�'ar,cLS. C�'iutr�on; C.C.�1.r *
City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
California 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 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 Aufhorized
53601 d CA Local Agency Debt 5 Years No Limit Nof Authorized
53601(e) Federal A encies 5 Years No Limit 5 Years 30°/a 6% 22.1% 33.2%
53601(� Bankers's Acce tances 180 Da s 40% 180 Days 40% A-1 &P-1 - -
53601 Commercial Pa er 270 Da s 25% A-1+or P-1 270 Days 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&Aaa - -
53601(i) Reverse Repos 92 Days 20% NotAuthorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 14.2% 6.0%
53601 k Mutual Funds 90 Days 20% AAA&Aaa 90 Da s 20% (2) AAA 8�Aaa 32.3% 56.4%
53601 I Trust Indenture Debt Not Authorized
53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Govemment AAA&Aaa AAA&Aaa
Investment Pools 90 Days 20% or Advisor 90 Da s 20% (2) or Advisor 17.5% 0.2%
53601(n) Mortgage-Backed 5 Years 20°!o A(Issuer)& Not Authorized
Securities AA Security
LAIF No Limit No Limit 0.4% 4.3%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 86.4% 100.0%
(2) Maximum limit for mutual funds and local overnment investment pools, excluding bond proceeds.
` Certified California Municipal Treasurer Page 9 of 9