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Home My WebLink AboutInvestment Reports Sep & Oct 2008�cC CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARt\ DATE: DECEMBER 11, 2008 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for were presented and approved at the October and November meetings of the Audit, Investment and Finance Committee for the months of September and October 2008 respectively. 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: APPROVED .. . DENIED CEIVLD ti��x«.. , s� $.= :. ,max afsoralawaksuldueleearamMaraszmisamiximm AYES: i2,4,4„Ex.i4a.sx,c4 11- ABSENT: �. ABSTAIN: 3TN° File Sri inal on° �°ith�-Ci y Clerk VERIL IED BY : . ,�F� e � 's Office. Rea; Ue� (rile. BY RDA ON l- -O VERIFIED BY_R-D4&1 Original on file with City Clerk's Office G:\FINANCE\NIAMH ORTEGA\INVESTMENT COMMITTEE\MEMOS\RKLASSENINVREPORT.WPD Palm Desert Redevelopment Agency Portfolio Holdings September 30, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P Cash $ 854,303 HOUSWGAUTHCHKG 0.00 10/1/08 $ 854,303 0.00 100.00 $ 854,303 U U $ 387,592 HOUSING AUTH TRUST 0.00 1011/OB $ 387,592 0.00 100.00 $ 387,592 U U $ 1,241,895 Subtotal E 1,241,895 S 1,241,895 Total Investments and Cash $ 256,918,622 $ 257,384,563 $ 257,654,107 %of Portfolio . Corporate Issuers (Market Value) CITIGROUP 1S2°/ JP MORGAN CHASE 3.90°/ WACHOVIA 0.77% WAL-MART 2.38% WELLS FARGO BANK 522°/ %of PoMolio Agency Issuers (Market Value) FED FARM CREDIT BANK 3.55% FED HOME LOAN BANK 4.15% FED HOME LOAN MTG CORP 2.38% FED NATIONAL MTG ASSOC 1.66% A "U"= Unrated Page 8 ' 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 Govemment Code. The Palm Desert Audit, Investment,and Finance Committee and the Palm Desert City Council review the Statement of Imestment Policy annually. For the month ended September 30, 2008,the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regWations. 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 suffcient 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 poMolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interective 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 October 28, 2008, ��s �'cUao�, c c M r. * City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Policy CA Govt Maximum Maximum Quality Mazimum Maximum Quality %of City %of RDA Code ImestmentCategory Maturity Limit S&P/Mdys Maturiry Limit S&P/Mdys Portfolio Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized(1J 53601(b) U.S.Treasunes 5 Years No Limit 5 Years No Limit 0.0% 0.0% 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized 53601(e) Federal Agencies 5 Vears No Limit 5 Years 30% 6% 15.6% 11.5% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 &P-1 - - 53601(g) CommercialPaper 270Days 25% A-1+orP-1 270Days 25% A-i+orp-1 0.0% 0.0% 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - - 53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - - 53601(i) ReverseRepos 92Days 20% NotAuthorized 53601(j) Medium-Term Notes 5 Years 30% A 5 Years 30% A 30.5% 14.1°/ 53601(k) Mutual Funds 90 Days 20% AAA&Aaa 90 Da s 20% (2) AAA&Aaa 19.1% 66.1°/ 53601(I) Tmst Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Aufhorized 53601(k) Local Government AAA&Aaa AAA&Aaa Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor 24.0% 8.3%a 53601(n) Mortgage-Backed S Years 20°/ A(Issuer)& Not Authorized Securities AA(Security LAIF No Limit No Limit 0.1% 0.1% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. 89.3% 100.0% . (2) Maximum limit for mutual funds and local government investment pools, exduding bond proceeds. . ' Certified Califomia Municipal Treasurer Page 9 ' �� City of Palm Desert �� ; City and Redevelopment Agency Portfolios �� COMPLIANCE ANALYSIS AND INVESTMENT REPORT v September 2008 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary On October 8, the Federai Open Market Committee (FOMC) held an emergency meeting, and cut the Federal Funds Rate by 50 basis points to 1.50%. This rate cut was coordinated with Canadian and European central banks since the credit crisis had spread globally. Fed Funds Futures have assigned a 50% probability to the FOMC making another 50 basis- point cut at its next meeting on October 28, which would leave the Federal Funds Rate at 1.00%. The week of October 13 saw a record-setting U.S. stock market crash and one-day recovery. The Dow Jones Industrial Average was down nearly 40%from a year earlier. The U.S. Treasury launched the $700 billion Trouble Asset Relief Program (TARP)to provide liquidity to the banking system. The U.S. Treasury also created emergency liquidity facilities for commercial paper and for money market funds because U.S. corporations were having trouble financing their daily operations. Wells Fargo Bank guaranteed its survival by pushing Citigroup aside, and merging with Wachovia Bank. The UCLA Economic Forecast has projected 0% economic growth for the U.S. during 4Q2008 and 1Q2009. This may be overly optimistic. Absent federal intervention, there are five types of toxic mortgages that will be at crisis levels at different times over the next three years. Consumer confidence is at a low point with many Americans fearing the loss of their homes, their jobs, and their savings. Merrill Lynch believes that a long, severe recession is likely. Hyperinflation may follow due to the expansion of the the money supply. vauLs G�l�or�u c.c,M r. City Treasurer PORTFOLIO STATISTICS Dollars in Thousands SEP-08 AUG-OB JUL-08 JUN-OB MAY-OS APR-OB CITY Month-End Book Value"` $ 211,223 $ 220,438 $ 222,674 $ 231,179 $ 224,746 $ 222,731 Month-EndMarketValue"* $ 224,665 $ 221,338 $ 223,460 $ 232,273 $ 226,069 $ 224,158 PaperGain(Loss) $ 13,642 $ 900 $ 786 $ 1.094 $ 1,323 $ 1,427 PriorYearBookVariance $ (23,021) $ (25,412) $ (33,469) $ (11,919) $ (32,513) $ (26,260) Interest Earnings $ 647 $ 665 $ 688 $ 689 $ 703 $ 716 Yield-To-Malurity 370% 3.65°/ 3.69% 375% 3.88% 3.98% Weighted Maturity(Days) 489 490 500 503 519 512 Effective Duration 0.58 0.63 0.65 0.68 0.74 0.77 RDA Month-End Book Value'"` $ 257,385 $ 284,134 $ 288,987 $ 285,360 $ 299,471 $ 261,769 Monlh-End Market Value"' $ 257,654 $ 284,962 $ 289,777 $ 286,216 $ 300,441 $ 263,017 Paper Gain(Loss) $ 269 $ 828 $ 790 $ 856 $ 970 $ 1,248 PriorYearBookVariance $ (1Q289) $ (5,730) $ (4,039) $ (17,349) $ (11,724) $ (17,240) Interest Earnings $ 718 $ 727 $ 748 $ 744 $ 770 $ 721 Yield-To-Maturity 3.18% 3.05% 3.08% 3.09% 3.14°/ 3.35% Weighted Maturity(Days) 259 275 277 280 266 305 Effective Duration 029 0.28 0.30 0.32 0.33 0.40 "" Omits SLGSs. City of Palm Desert-- Portfolio Characteristics � September 30, 2008 Dollais in Thousands Aqeinq Interval Market Value < �M $ 56,880 General Fund Ageing < 2M 4.010 <3M 1.991 100 . .-. . . . . . . . .. .. .. ... � <6M 6,002 _ $p < tYR 12,293 e <2YR 48,756 0 60 38 < 3YR 21.234 � 40 32 <4YR a° Zp e 14 3 1 4 0 0 0 < 5YR - � > SYR - Total: $ 151,166 � ' �M <2M <3M <6M <1VR<2YR<3YR<4YR<5YR>SYR Ratin s' MarketValue Creditoualiry qqq $ 135.811 qq 45,162 Unraled" AAA 11/ 65% A 5.161 A Unrated*' 22,669 p� Total: E 208,803 � 22/ Sector MarketValue AssetAllocation �MMF $ 40,426 Agencies 33,538 Agencies 30Ns 16% MTNs 61,443 CAMP 50,727 RDA Loan 22,655 MMF �T.� CAMP LAIF 14 19% 23% Cp - RDA Loan Total: $ 208,803 >>� Month CitvYield LAIFYield Variance Pertormance Oct07 5.05 5.74 -0.09 Nov 4.93 4.96 -0.03 -. . .- . - .- - . -.-- - -- � ---- Dec 4.87 4.80 0.07 5.0 Jan08 4.72 4.62 0.10 Feb 4.31 4.16 0.15 = q.p Mar 4.05 378 027 d Apr 3.98 3.40 0.58 � 3.y May 3.88 3.07 0.81 Jun 375 2.89 0.86 p.g Jui 3.69 2.88 ��BZ Oct07 Nov DecJan08 Feb Mar Apr May Jun Jul Aug Sep Aug 3.65 278 0.87 _ _. Sep 370 277 0.93 0 0 ' Standard and Poors _ " LAIF, and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings September 30, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's 5&P Medium-Term Notes $ 2,920,000 BANK OF AMERICA 5.86 2/15/09 $ 2,928,727 5.01 98.93 $ 2,888,742 Aa2 AA- $ 3,795,000 BANK OF AMERICA 5.36 8/15/11 $ 3,928,468 4.05 96.62 $ 3,666,812 Aa2 AA- $ 3,000,000 BANK OF AMERICA 4.25 1011/10 $ 3,059,953 320 95.71 $ 2,871,297 Aa2 AA- $ 15,270,000 CITIGROUP 4.13 2/22/10 $ 15,114,753 4.97 9229 $ 14,092,195 Aai AA $ 2,035,000 GTIGROUP 4.13 2/22/10 $ 2,014,311 4.91 9229 $ 1,878,036 Aai AA $ 1,000,000 GTIGROUP 4.63 8l3/10 $ 990,454 5.19 91.37 $ 913,083 Aa1 AA $ 4,000,000 GTIGROUP 4.63 8l3/10 $ 3,967,818 5.19 91.31 $ 3,652,332 Aai AA $ 2,000,000 GENERAL ELECTRIC 3.60 10I15I08 $ 1,998,998 4.99 99.90 $ 1,997,930 Aaa AAA $ 2,035,000 GENERAL ELECTRIC 4.88 10I21I10 $ 2,007,200 5.63 96.81 $ 1,970,142 Aaa AAA $ 1,891,000 GENERAL ELECTRIC 6.88 11/15I10 $ 1,933,963 5.65 100.31 $ 1,89Q870 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.73 2122111 $ 2,019,045 5.67 99.37 $ 1,987,402 Aaa AAA $ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 4,092,403 323 96.81 $ 3,838,631 Aaa AAA $ 3,080,000 WACHOVIA 3.63 2/17I09 $ 3,064,851 SA2 94.95 $ 2,924,404 Aa3 A+ $ 2,000,000 WACHOVIA 7.80 S/18I10 $ 2,095,965 5A2 8328 $ 1,665,696 Aa3 A+ $ 2,000,000 WAL-MART 6.88 8/10I09 $ 2,030,326 4.93 10271 $ 2,054,130 Aa2 AA $ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,099,491 2.90 102.71 $ 3,081,195 Aa2 AA � $ 4,000,000 WELLS FARGO BANK 6.38 8l1/11 $ 4,124,606 5.13 701.89 $ 4,0�5,440 Aa1 AA- $ 2,000,000 WELLS FARGO BANK 4.63 8l9/10 $ 1,984,366 5.09 99.59 $ 1,991,716 Aa1 AA- $ 2,025,000 WELLS FARGO BANK 3.13 4/1/09 $ 2,007,626 4.92 99.00 $ 2,004,833 Aa1 AA- $ 2,02Q000 WELLS FARGO BANK 4.20 1I15I10 $ 2,001,320 4.96 98.63 $ 1,992,273 Aa1 AA- S 64,036,000 Subtotal $ 64,458,642 470 $ 61,443,161 Federal Agencies-Coupon $ 3,000,000 FED FARM CREDIT BANK 478 5/3I10 $ 3,007,422 4.61 10228 $ 3,068,438 Aaa AAA $ 3,000,000 FED FARM CREDIT BANK 478 5/3/10 $ 3,007,422 4.61 10228 $ 3,068,438 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,99Q024 6.90 100.03 $ 2,000,625 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 438 9/17/09 $ 2,987,228 5.59 101.13 $ 3,033,750 Aaa AAA $ 1,980,000 FED HOME LOAN BANK 475 12/12/08 $ 1,979,511 4.87 100.37 $ 1,986,188 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 3.50 1113/09 $ 1,95Q286 5.96 10025 $ 2,005,000 Aaa AAA $ 2,033,000 FED HOME LOAN MTG CORP 425 7I15/09 $ 2,023,945 4.87 100.81 $ 2,049,518 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12I15I09 $ 2,029,664 4.87 100.97 $ 2,068,850 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11I18I09 $ 1,984.540 4.88 100.98 $ 2,019,696 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.90 1113/OB $ 1,999.736 5.06 100.14 $ 2,002,864 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7112/10 $ 2,016,045 5.47 101.69 $ 2,096,796 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15I09 $ 2,014,410 5.50 100.97 $ 2,068,850 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28I09 $ 1,994,998 4.88 101.38 $ 2,027,500 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8I15I10 $ 1,957,599 5.47 102.03 $ 2,040,625 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17I08 $ 1,993,961 6.35 100.06 $ 2,001,250 Aaa AAA S 33,173,000 Subtotal $ 32,942,794 5.29 $ 33,538,386 "U"= Unrated Page 3 City of Palm Desert Portfolio Holdings September 30, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P Local Government Investment Pool $ 14,057 L.A.LF. 0.00 10/1/08 $ 14,057 2.77 100.00 $ 14,057 U U $ 14,057 Subtotal $ 14,057 2.77 $ 14,057 Local Government Investment Pool $ 653,632 C.A.M.P. 0.00 10/1/08 $ 653,632 257 100.00 $ 653,632 U AAA $ Sq072,875 C.A.M.P. (DESERT WILLOW) 0.00 1011/08 $ 50,072,875 2.57 100.00 $ 50,072,875 U AAA $ 50,726,507 Subtotal $ 50,726,507 2.57 E 50,726,507 Money Market Fund $ 40,425,826 WF HERITAGE SELECT 0.00 10/1I08 $ 40,425,826 2.76 100.00 $ 40,425,826 Aaa AAA E 40,425,826 Subtotal $ 40,425,826 276 $ 40,425,826 City of Palm Desert � $ 22,655,000 CITY OF PALM DESERT 0.00 1011/38 $ 22,655,000 2.77 100.00 $ 22,655,000 U U $ 22,655,U00 Subtotal $ 22,655,000 2.77 5 22,655,000 Total Investments $ 211,030,391 $ 211,222,827 3.70 $ 208,802,938 Cash $ 15,03Q391 GTY MAIN CHKG 0.00 10/1I08 $ 15,030,391 0.00 100.00 $ 75,030,391 U U $ 800,750 DESERT WILLOW CHKG 0.00 10/1I08 $ 800.750 0.00 100.00 $ 800,750 U U $ 231,221 RECREATIONAL FAC CHKG 0.00 10I1I08 $ 231,221 0.00 100.00 $ 231,221 U U $ - ART, FOOD 8 W WE CHKG 0.00 1011/08 $ - 0.00 100.00 $ - U U $ - MONTEREY 170 CHKG 0.00 1011/08 $ - 0.00 100.00 $ - U U § 16,062,361 Subtotal $ 16,062,361 5 16,062,361 Total Investments and Cash $ 227,092,752 $ 227,285,189 $ 224,865,299 "U"= Unrated Page 4 City of Palm Desert Portfolio Holdings September 30, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price � Value �Moody's� S&P � %of Portfolio Corporate Issuers (Market Value) BANK OF AMERICA 4.19% CITIGROUP g�13o/ GENERAL ELECTRIC 520% WACHOVIA 2.04% WAL-MART 2.28% WELLS FARGO BANK 4.48% °/of Portfolio Corporate Issuers (Market Value) FED FARM CREDIT BANK 3.62% FED HOME LOAN BANK 3.12% FED HOME LOAN MTG CORP 5.47% FED NATIONAL MTG ASSOC 2.70% "U"= Unrated Page 5 Palm Desert Redevelopment Agency -- Portfolio Charecteristics � September30, 2008 Dollarsin Thousands Apeinq Interval Market Value � portfolio Ageing w/o SLGSs < 1 M $ 20,016 < 2M - � <3M 2,009 100 <6M 14,149 90 ,.., 80 < tYR 16,020 =° 70 - <2YR 30,039 i o 50 35 <3YR 4,146 �E 0 30 - 23 16 19 <4YR - E a 20 � 2 `' 0 0 0 < 5YR - E �� > 5YR - E 0 � <1M <2M <3M <6M < 1YR<2YR<3YR<4YR<5YR>SYR Total: $ 86,379 Qualitv` MarketValue Creditauality qqq $ 220.847 qq 23,497 � q 12,037 as% Unrated" 31 A Total: $ 256,412 5� � 9/ Sector MarketValue AssetAllocation � MMF $ 169,464 Agencies 30,245 MMF MTNs 35,534 66% CAM P 21,138 LAIF 31 Agencies CP - CAMP 12% Tfeasufies - 8% MTNs Total: S 256,412 14% Month RDA Yield LAIF Yield Variance Pertormance Oct07 4.87 5.14 -0.27 Nav 470 4.96 -0.26 5A . . .. _ __._- � .- ____._.. ____, Dec 4.70 4.80 -0.10 Jan08 4.45 4.62 -0.17 4.7 Feb 3]8 4.16 -038 Mar 3.36 3.78 -0.42 � 4�0 Apr 3.35 3.40 -0.05 � 3 3 I + May 3.14 3.07 0.06 � Jun 3.09 2.89 020 2.6 � Jul 3.08 279 029 OctW Nov DecJan08 Feb Mar Apr May Jun Jul Aug Sep Aug 3.05 2.78 0.27 Sep 3.18 277 0.41 m�niFnem saonnem I ' Standard and Poors , " LAIF Page 6 � Palm Desert Redevelopment Agency Portfolio Holdings September 30, 2008 Market Ratings P V I Issuer Coupon Maturity Cost YTM� Price � Value � Moody's� S&P � � _ __ Medium-Term Notes $ 4,000,000 CITIGROUP 620 3/15I09 $ 4,018,208 5.13 97.98 $ 3,919,360 Aa1 AA- $ 4,070,000 JP MORGAN CHASE 3.50 3/15/09 $ 4,041,832 5.12 9924 $ 4.039,219 Aa3 A+ $ 3A55,000 JP MORGAN CHASE 3.50 3I15/09 $ 3,033,856 5.12 9924 $ 3,031,895 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 6.00 1I15I09 $ 3,025,432 3.00 99.55 $ 2,986,374 Aa3 A+ $ 2,000,000 WACHOVIA 5.80 1211/08 $ 2,002,449 5.00 98.97 $ 1,979,328 Aa3 A+ $ 3,000,000 WAL-MART 6.88 8I10/09 $ 3,051,366 476 102.71 $ 3,081,195 Aa2 AA $ 3,000,000 WAL-MART 4.13 7I1I10 $ 3,061,171 2.91 101.96 $ 3,058,887 Aa2 AA $ 13,625.000 WELLS FARGO BANK 420 1/15I10 $ 13,828,178 3.00 98.63 $ 13,437,983 Aat AA- $ 35,750,000 Subtotal $ 36,062,492 3.91 $ 35,534,240 Federal Agencies--Coupon $ 2,000,000 FED FARM CREDIT BANK 6.45 1017/09 $ 2,02$858 4.88 10327 $ 2,065,408 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 475 8l3/09 $ 1,996.762 4.87 101.34 $ 2,026,875 Aaa AAA . $ 4,900,000 FED FARM CREDIT BANK 4.90 9/22I10 $ 4,923,170 4.65 702.97 $ 5,045,469 Aaa AAA $ 4,500,000 FED HOME LOAN BANK 438 9/11/09 $ 4,480,842 5.59 101.13 $ 4,550,625 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7I24I09 $ 1,989.936 4.89 100.53 $ 2,015,652 Aaa AAA • $ 2,000,000 FED HOME LOAN BANK 4.88 3/11111 $ 1,971,781 5.49 103.28 $ 2,065,625 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11111 $ 1,971,405 5.50 10328 $ 2,065,625 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9I15/10 $ 2,045,965 5.54 106.84 $ 2,136,875 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15I10 $ 3,819,974 5.54 106.84 $ 3,989,546 Aaa AAA $ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15I09 $ 4,217,353 4.89 103.09 $ 4,283,545 Aaa AAA $ 29,294,000 Subtotal $ 29,447,448 5.16 $ 3Q245,244 Local Government Investment Pool $ 21,503 LA.I.F. 0.00 1011/08 $ 21,503 2.77 100.00 $ 21,503 U U $ g,824 LA.I.F.(HOUSING) 0.00 10/1I08 $ 9,824 277 100.00 $ 9,824 U U § 31,327 Subtotal 8 31�32� 2.�� $ 3��3z� Local Government Investment Pool $ 79,050,757 C.A.M.P. 0.00 10/1I08 $ 19,050,757 2.57 100.00 $ 19,050,757 U AAA $ 2,086,900 C.A.M.P.(HOUSING) 0.00 10/t108 $ 2,08Q900 2.57 100.00 $ 2,086,900 U AAA $ 21,137,657 Subtotal $ 21,137,657 2.57 $ 21,137,657 Money Market Fund $ 169,463,743 WF HERITAGE SELECT 0.00 1011/08 $ 169,463,743 276 100.00 $ 169,463,743 Aaa AAA $ 169,463,743 Subtotal $ 169,463,743 276 S 169,463,743 Total Investments $ 255,676,727 $ 256,142,668 3.18 $ 256,412,212 "U"=Unrated Page 7 � Palm Desert Redevelopment Agency Portfolio Holdings October 31, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S 8 P Cash $ 793,208 HOUSING AUTH CHKG 0.00 1111/08 $ 793,208 0.00 100.00 $ 793,208 U U $ 392,881 HOUSING AUTH TRUST 0.00 11/7/08 $ 392,881 0.00 100.00 $ 392,887 U U $ 1,186,089 Subtotal $ 1,186,089 $ 1,786,089 7otal Investments and Cash $ 244,667,359 $ 245,100,341 $ 245,429,358 %of Portfolio Corporate Issuers (Market Value) CITIGROUP 7.61% . JP MORGAN CHASE 4.11% WACHOVIA 0.81% WAL-MART 2.49°/ WELLSFARGO BANK 5.47% %of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 3.72% FED HOME LOAN BANK 4.36% FED HOME LOAN MTG CORP 2.49% FED NATIONAL MTG ASSOC 1]4% "U"= Unrated Page 8 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert("Ciry")and Ihe 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. Imestment, and Finance Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended October 31,2008, the City and the RDA investment portfolios were in compliance wiih 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 priorily). Barring unforeseen events,the City Treasury should have sufficient cash to fnance 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 LP. and Interective Data Corporation provided the data and the analytical tools that were used to calculate the market value of ail sewrities in the Ciry and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts, and are therefore not induded in this report as assets. All balances are bank balances. Respectfully submitted on November 25, 2008, t�aul�S. CiGlydos'i, C.CM. r * City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Policy CA Govt Maximum Mazimum Quality Maximum Maximum Quality %of City %of RDA Code InvestmenlCategory Maturity Limit S&PlMdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized(1) 53607(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 53607(d) CA Local Agency Debt 5 Years No Limit NotAuthorized 53601(e) Federal Agencies 5 Years No Limit 5 Years 30% 6% 14.6% 72.1% 53601(f) Bankers's Acceptances 180 Days 40% 180 Days 40% A-1 &P-1 - - 53601(g) Commercial Paper 270 Days 25% A-1+or P-1 270 Days 25% A-1+ or P-1 0.0% 0.0% 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - - 53601(i) Repos 1 Year No Limit 30 Days 20% AAA&Aaa - - 53601(i) Reverse Repos 92 Days 20% Nof Authorized 53601Q) Medium-Term Notes 5 Years 30% A 5 Years 30°/ A 28.5°/ 14.8% 53601(k) MuWal Funds 90 Days 20% AAA&Aaa 90 Days 20% (2) AAA 8 Aaa 17.4% 64.5°/ 53601Q) TrustlndentureDebt NotAuthorized 53601(m) Secured Bank Deposits 5 Years No Limit NotAuthorized 53601(k) Local Government AAA&Aaa AAA&Aaa Investment Pools 90 Days 20% or Advisor 90 Days 20% (2J or Advisor 28.8% 8.7% 53601(n) Mortgage-Backed SYears 20% A(Issuer)& NotAuthorized Sewrities AA(Security LAIF No Limit No Limit 0.0% 0.0% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. 89.3°/ 100.0°/ (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds. * Certified California Municipal Treasurer Page 9 �� City of Palm Desert ♦ ��A�� City and Redevelopment Agency Portfolios � COMPLIANCE ANALYSIS AND INVESTMENT REPORT '\�� October 2008 v 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 again on December 16. The Fed Funds Futures Markel is implying that the FOMC will cut the Federal Funds Rate by 50 basis points from 1.00%a to 0.50% over the next few months. Such a cut would be largely symbolic, however, and would undermine the competitiveness of money market funds. The recession is now global, having spread to Europe and Japan. U.S. economic growth for 4Q2008 and 1 Q2009 is forecast at-42% and -2.5%, respectively. Retail sales for October showed their largest decline since 1987 as consumers experienced increasing pressure on their income, wealth, and credit availability. Household net worth has fallen by $2.7 trillion from its peak in 3Q2007. By the end of 2008, the U.S. Unemployment Rate is forecast to be 6.9% as il continues towards a peak of 8.5%. Riverside County's Unemployment Rate is currently estimated to be 10%. The $700 billion Federal bail-out is dead as originally conceived. Instead of being used to buy troubled bank assets, the money will now be given to banks for direct consumer lending. The U.S. Treasury reportedly abandoned the earlier plan over concerns that there would not be enough money to cover both the banking crisis, and the widening consumer credit default - crisis. General Electric's liquidity has been strengthened by having up to $139 billion of its debt guaranteed by FDIC's Temporary Liquidity Guarantee Program. General Motors has indicated that it will run out of cash by Christmas. Credit quality in the corporete sector continues to deteriorate. i�accLs �i��lJaon, c c.M. r. City Treasurer PORTFOLIO STATISTICS Dollars in Thousands OCT-08 SEP-OS AUG-OB JUL-08 JUN-OB MAY-08 CITY Month-End Book Value""` $ 217,630 $ 211,223 $ 220,438 $ 222,674 $ 231,179 $ 224,746 Month-End Market Value'"' $ 216,626 $ 224,865 $ 221,338 $ 223,460 $ 232,273 $ 226,069 PaperGain(Loss) $ (1,004) $ 13,642 $ 900 $ 786 $ 1,094 $ 1,323 PriorYearBookVariance $ (26,483) $ (23A21) $ (25,412) $ (33,469) $ (11.919) $ (32,513) Interest Eamings $ 575 $ 647 $ 665 $ 688 $ 689 $ 703 Yield-To-Maturity 327% 370% 3.65% 3.69% 375°/ 3.86°/ Weighted Maturity(Days) 470 489 490 500 503 579 Effective Duration 0.55 0.58 0.63 0.65 0.66 0.74 RDA Month-End Book Value"' $ 245,100 $ 257,385 $ 284,134 $ 288,987 $ 285,360 $ 299,471 Month-End Market Value"' $ 245,429 $ 257,654 $ 284,962 $ 289,777 $ 286,216 $ 300,441 Paper Gain (Loss) $ 329 $ 269 $ 828 $ 790 $ 856 $ 970 � PriorYearBookVariance $ (5,663) $ (16,289) $ (5,730) $ (4,039) $ (17,349) $ (11,724) Interest Earnings $ 325 $ 718 $ 727 $ 748 $ 744 $ 770 Yield-To-MaNrity 1.60% 3.18% 3A5% 3.08°/ 3.09% 3.14% Weighted Maturity(Days) 272 259 275 277 280 266 Effective Duration 0.28 0.29 028 0.30 0.32 0.33 "'" Omits SLGSs. City of Palm Desert -- Portfolio Characteristics October 37, 2008 Dollais in Thousantls Aqeina Interval Market Value �M $ �y 122 General Fund Ageing < 2M 1,986 <3M _ �00 - ._____.--_ - - <gM 5,813 � 80 � . < 1YR 12,246 e < 2YR 53,302 o so aa < 3YR 11,627 � 40 32 0 <4YR a Z� 1 0 4 � � 0 0 0 < 5YR - � >SYR - Total: $ i8q,096 <iM <2M <3M <6M <1YR<2YR<3YR<4VR<5YR>SYR Credit Quality Ratinns" MarketValue qqq qqA $ 118,855 57% qq 44,161 Unrated" q 4.999 20% Unrated"' 42,730 TotaC 5 21Q745 A AA 2% 21% Sector Market Value Asset Allocation MTNs - MMF $ 36.807 28% Agencies 3�,537 MTNs 58,859 Agencies CAMP 40,813 15% CAMP 23% RDA Loan 22,655 GMRA 20,060 MMF J LAIF �4 »� RDALoan CP - GMRA 11% Total: S 210,745 10/ Month Citv Yield LAIF Yield Variance Performance Nov07 4.93 4.96 -0.03 Dec 4.87 4.80 0.07 5.0 - -- Jan08 4J2 4.62 0.10 4.5 � Feb 4.37 4.76 0.15 Mar 4.05 3.76 0.27 = 4�0 Apr 3.98 3.40 0.58 a 3.5 May 3.88 3.07 0.81 Y Jun 3.75 2.89 0.86 3.0 Jul 3.69 2.88 0.82 2.5 � Aug 3.65 278 0.87 Nov07DecJan08Feb Mar Apr May Jun Jul Aug Sep Oct Sep 370 277 0.93 , - Oct 327 277 0.56 ■�n�" .•` -.� �' �. . ' Standard and Poors "' LAIF, and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings October 31, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value �Moody's� S&P� Medium-Term Notes $ 2,920,000 BANK OF AMERICA 5.88 2/15/09 $ 2,926,773 5.01 99.77 $ 2,913,371 Aa2 AA- $ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,924,595 4A5 9679 $ 3,673,317 Aa2 AA- $ 3,000,000 BANK OF AMERICA 4.25 1011/10 $ 3A57,455 3.20 97.06 $ 2,911,866 Aa2 AA- $ 15,270,000 CITIGROUP 4.13 Z22/10 $ 15,124,049 4.91 96.08 $ 74,671,906 Aa1 AA $ 2,035,000 CITIGROUP 4.13 2I22I10 $ 2,015,549 4.91 96.08 $ 1.955,293 Aa1 AA $ 1,000,000 CITIGROUP 4.63 8/3I10 $ 990,887 5.79 9626 $ 962,616 Aa1 AA $ 4,000,000 GTIGROUP 4.63 6/3I10 $ 3,963,548 5.19 9626 $ 3,850,464 Aa1 AA $ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 2,008,32� 5.63 97.18 $ 1,977,627 Aaa AAA $ 1,891,000 GENERAL ELECTRIC 6.88 11I75/10 $ 7,932,276 5.65 99.88 $ 1,888,636 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.13 2122/11 $ 2,018,381 5.67 98.98 $ 1,979,588 Aaa AAA $ 3,965,000 GENERAL ELECTRIC 4.88 10I21I10 $ 4,087,238 3.23 97.18 $ 3,853,215 Aaa AAA $ 3,OSQ000 WACHOVIA 3.63 2I17I09 $ 3,068,192 5.02 98.80 $ 3,042,917 Aa3 A+ $ 2,000,000 WACHOVIA 7.80 8I18I10 $ 2,091,713 5.02 97.80 $ 1,955,936 Aa3 A+ $ 2,000,000 WAL-MART 6.88 8/10I09 $ 2,027,382 4.93 103.10 $ 2,061,968 Aa2 AA $ 3,000,000 WAL-MART 6.88 8/10/09 $ 3,089,832 2.90 103.10 $ 3,092,952 Aa2 AA $ 4,000,000 WELLS FARGO BANK 6.38 8l1/11 $ 4,120,941 5.13 102.14 $ 4,085,528 Aa1 AA- $ 2,000,000 WELLS FARGO BANK 4.fi3 8l9/10 $ 1,985,068 5.09 99.59 $ 1,991,774 Aa1 AA- - $ 2,020,000 WELLS FARGO BANK 4.20 1/15I10 $ 2,002,528 4.96 98.52 $ 1,990,736 Aa1 AA- $ 60,011,000 Subtotal $ 6Q434,734 4.69 $ 58,859,050 Federal Agencies--Coupon $ 3,000,000 FED FARM CREDIT BANK 478 5l3/10 $ 3,007,033 4.61 102.19 $ 3,065,625 Aaa AAA $ 3,000,000 FED FARM CREDIT BANK 478 5/3/10 $ 3,007,033 4.61 102.19 $ 3,065,625 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.38 9I11I09 $ 2,988,355 5.59 101.19 $ 3,035,625 Aaa AAA $ 1,980,000 FED HOME LOAN BANK 475 12/12I08 $ 1,979,718 4.87 70025 $ 1,984,950 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 3.50 11/3I09 $ 1,954,091 5.96 10028 $ 2,005,625 Aaa AAA $ 2,033,000 FED HOME LOAN MTG CORP 425 7/15/09 $ 2,024,902 4.87 101.06 $ 2,054,601 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12I15/09 $ 2,031,007 4.87 101.03 $ 2,070,130 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11I18I09 $ 1,985,680 4.88 101.04 $ 2,020,876 Aaa AAA $ 2,OOQ000 FED HOME IOAN MTG CORP 4.90 17/3I08 $ 1,999,984 5.06 100.00 $ 2,000,000 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7I12I10 $ 2.018,196 5.47 101.72 $ 2,097,441 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,01fi,801 5.50 101.03 $ 2.070,130 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,995,386 4.86 101.31 $ 2,026,250 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 425 8/15/10 $ 1,959,486 5.47 101.97 $ 2,039,375 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11117/08 $ 1,997,899 6.35 100.03 $ 2,000,625 Aaa AAA $ 31,773,000 Subtotal $ 30,965,565 5.18 $ 31,536,878 Local Government Investment Pool $ 14,155 L.A.I.F. 0.00 11/7I08 $ 14,155 271 100.00 $ 14,155 U U $ 14,155 Subtotal $ 14,155 2.71 E 14,155 "U"= Unrated Page 3 City of Palm Desert Portfolio Holdings October 31, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Local Government Investment Pool $ 4Q158,482 C.A.M.P. 0.00 it/1/08 $ 40,158,482 2.48 100.00 $ 40,158,482 U AAA $ 655,003 C.A.M.P. (DESERT WILLOW) 0.00 11/1/OB $ 655,003 2.48 100.00 $ 655,003 U AAA $ 40,813,485 Subtotal $ 40,813,485 2.48 $ 40,813,485 Money Market Fund $ 36,805,276 WFTREASURYPLUS 0.00 11/1I08 $ 36,805,276 029 100.00 $ 36.805.276 Aaa AAA $ 36,805,276 Subtotal $ 36,805,276 029 $ 3Q805,276 Government Managed Rate Account $ 20,060,900 UNION BANK 0.00 11/108 $ 20,060,900 378 100.00 $ 20,060,900 $ 20,060,900 Subtotal $ 20,060,900 3.78 $ 20,060,900 City of Palm Desert $ 22,655,000 CITY OF PALM DESERT 0.00 1111/38 $ 22,655,000 271 100.00 $ 22,655,000 U U $ 22,655,000 Subtotal $ 22,655,000 2.71 S 22,655,000 � Totallnvestments S 217,532,616 $ 211,749,115 3.27 S 210,744,744 Cash $ 5,002,532 CITY MAIN CHKG 0.00 1111/08 $ 5,002,532 0.00 100.00 $ 5,002,532 U U $ 582,657 DESERT WILLOW CHKG 0.00 1111/08 $ 582,657 0.00 100.00 $ 582,657 U U $ 296,094 RECREATIONAL FAC CHKG 0.00 1111/08 $ 296,094 0.00 100.00 $ 296,094 U U $ - ART, FOOD&W WE CHKG 0.00 1111/08 $ - 0.00 100.00 $ - U U $ - MONTEREY 170 CHKG 0.00 1111/08 $ - 0.00 100.00 $ - U U $ 5,881,283 Subrotal $ 5,881,283 5 5,881,283 Total Investments and Cash § 217,414,099 $ 217,630,397 $ 216,626,027 "U"= Unreted Page 4 City of Palm Desert Portfolio Holdings October 31, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P %of Portfolio Corporate Issuers (Market Value) BANK OF AMERICA 4.38% CITIGROUP 9.90% GENERAL ELECTRIC 4.48% WACHOVIA 2.31°/ WAL-MART 2.38% WELLS FARGO BANK 3.72% %of Portfolio Corporate Issuers (Market Value) FED FARM CREDIT BANK 2.83% FED HOME LOAN BANK 324°/a FED HOME LOAN MTG CORP 5.68% FED NATIONAL MTG ASSOC 2.60% "U" = Unrated Page 5 Palm Desert Redevelopment Agency -- Portfolio Characteristics October 3'I, 2008 Dollars in Thousantls Aqeinq Interval Market Value � portfo�io Ageing w/o SLGSs < iM $ 19,061 c 2M - <3M 1.979 I i00 . . . _. ._ ___ __ _ _._____._ ...__ , <6M 2.986 � 90 � � , 80 , < 1YR 10,990 = 70 +. <2YR 18,023 0 60 '. ° 50 ! 33 < 3YR 27,669 � 40 ; 22 21 <4YR 4,132 a 20 I 13 < SYR - 10 ' 0 2 4 5 0 0 o - > 5YR - <�M <2M <3M <6M <tYR<2VR<3VR<4YR<5YR>SVR Total: $ 84,840 � Qualitv' MarketValue Creditquality AAA $ 206,648 qqq AA 23,482 85% A 12,081 Unrated" 32 A 7otal: $ 244,243 5� 10% Sector MarketValue AssetAllocation � MMF $ 15�,223 Agencies 30,243 MMF MTNs 35,563 64� CAMP 21,182 LAIF 32 Agencies . CP - CAMP 12� Treasuries - 9% MTNs To[al: $ 244,243 15� Month RDA Yield LAIF Yield Variance Performance Nov07 4.70 4.96 -0.26 Dec 4.70 4.80 -0.10 5.a - Jan08 4.45 4.62 -0.17 Feb 3.78 4.16 -0.38 a.0 Mar 3.36 3.78 -0.42 e Apr 3.35 3.40 -0.05 a 3.0 v May 3.14 3.07 0.06 > Z o Jun 3.09 2.89 020 Jul 3.08 2.79 029 �.p Aug 3.05 2.78 0�2� Nov07DecJanOBFeb Mar Apr May Jun Jul Aug Sep Oct Sep 3.18 2.77 0.41 OCI 1.C)� 2.71 -1.11 OLAIF Vield ORDA Yield � ` Standard and Poors � *' LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings October 31, 2008 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's 5&P Medium-Term Notes $ 4,000,000 CITIGROUP 6.20 3I15I09 $ 4,014,877 5.13 98.85 $ 3,954,060 Aai AA- $ 4,07Q000 JP MORGAN CHASE 3.50 3I15/09 $ 4,046,984 5.12 99.60 $ 4,053,875 Aa3 A+ $ 3,055,000 JP MORGAN CHASE 3.50 3I15/09 $ 3,037,724 5.12 99.60 $ 3,042,896 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 6.00 1115/09 $ 3,018,096 3.00 9978 $ 2,993,448 Aa3 A+ $ 2,OOQ000 WACHOVIA 5.80 12/1/08 $ 2,001,225 5.00 99.53 $ 1,990,658 Aa3 A+ $ 3,OOQ000 WAL-MART 6.88 8I10/09 $ 3,046,379 476 103.10 $ 3,092,952 Aa2 AA $ 3,000,000 WAL-MART 4.13 7l1/10 $ 3,058,258 2.91 100.39 $ 3,011,712 Aa2 AA $ 13,625,000 WELLS FARGO BANK 420 1I75/10 $ 13,815,042 3.00 98.52 $ 13,423,569 Aa1 AA- $ 35,750,000 Subtotal $ 36,038,585 3.91 $ 35,563,170 Federal Agencies--Coupon $ 2,OOQ000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,026,493 4.88 103.09 $ 2,061,824 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 475 8l3/09 $ 1,998,344 4.87 101.47 $ 2,029,375 Aaa AAA $ 4,900,000 FED FARM CREDIT BANK 4.90 9122/10 $ 4,922,193 4.65 10297 $ 5,045,469 Aaa AAA ' $ 4,500,000 FED HOME LOAN BANK 438 9171/09 $ 4,482,533 5.59 101.79 $ 4,553,438 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7124/09 $ 7,991,479 4.89 100.72 $ 2,019,411 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,972,743 5.49 103.44 $ 2,068,750 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3111/11 $ 1,972,380 5.50 103.44 $ 2,068,750 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9115/10 $ 2,044,007 5.54 106.69 $ 2,733,750 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,816,311 5.54 106.69 $ 3,983,711 Aaa AAA $ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9I15/09 $ 4,211,916 4.89 102.97 $ 4,278,352 Aaa AAA E 29,294,000 Subtota� $ 29,438,397 5.16 $ 30,242,829 Loca� Government Investment Pool $ 21,653 LA.I.F. 0.00 1111/08 $ 21,653 2.71 100.00 $ 21,653 U U $ 9,893 LA.I.F.(HOUSING) 0.00 1111/08 $ 9,693 2.71 100.00 $ 9,893 U U $ 31,546 Subtotal E 31,546 271 $ 37,546 Local Government Investment Pool $ 19,090,706 GA.M.P. 0.00 11/1/08 $ 19,090,706 2.48 100.00 $ 19,09Q706 U AAA $ 2,091,276 C.A.M.P. (HOUSING) 0.00 11/1/08 $ 2,091,276 2.48 100.00 $ 2,091,276 U AAA $ 27,181,982 Subtotal $ 21,181,982 2.48 $ 21,181,982 Money Market Fund $ 757,223,743 WF TREASURY PWS 0.00 11/1I08 $ 157,223,743 0.29 100.00 $ 157,223,743 Aaa AAA $ 157,223,743 Subtotal $ 157,223,743 0.29 $ 157,223,743 Total Investments $ 243,481,270 $ 243,914,252 1.60 $ 244,243,269 "U" = Unrated Page 7