HomeMy WebLinkAboutInvestment Report - April 2010 � �� Gity of Palm De$ert �,...,.
� City and Redeveir�pment Agency Portfotios ;�
COMPLIANCE ANALYSIS AND IWVES7MENT REPCIRT
April 201D
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 22-23. Welis Fargo Bank is forecasting no increase in
short-term interest rates until December 2010 and 2011.
The Greek debt crisis dominated the news. Greece had allowed its Public Debt-to-Gross Domestic Product ratio to climb to
110%. Fear of a Greek debt default caused yields on Greek two-year notes to rise to 22%. Spain, Portugal, and Italy also
had to pay out higher yields on their government debt. The Euro significantly weakened against the U.S. Dollar. U.S.
Treasury yieids fell due to a global "flight-to-safety." The U.S. stock market went into a steep deciine. The French
reportedly threatened to drop the Euro unless the Germans agreed to a bailout package for the Greeks. The situation
stabilized after the European Union provided the Greeks with: (1)a E500 billion lending facility; (2) an additional E250
Billion from the IMF; and (3) European Central Bank financing to purchase government bonds in order to re-liquify markets.
A weakened Euro, however, and the feeble economic growth that may result from the austerity measures that heavily
indebted European countries are adopting, could mean a weaker export market for the U.S., and lower corporate profits.
U.S. GDP grew by 3.2% in 1 Q2010, and is projected to grow by 3.5% in 2Q2010. GDP is then expected to decline to 2%
in the second half of 2010. This decline will occur due to a wind-down of U.S. Government stimulus spending, and inventory
restocking.
��zs ���o�, c.c.�r.r
City Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
APR-10 MAR-10 FEB-10 JAN-10 DEC-09 NOV-09
CITY
Month-End Book Value**" $ 203,292 $ 197,952 $ 200,124 $ 218,094 $ 202,229 $ 201,381
Month-End MarketValue"" $ 203,969 $ 198,665 $ 201,136 $ 219,068 $ 203,250 $ 202,521
PaperGain(Loss) $ 677 $ 713 $ 1,012 $ 974 $ 1,021 $ 1,140
Prior Year Book Variance $ (14,671) $ (18,722) $ (19,345) $ 5,356 $ 3,176 $ (12,226)
Interest Earnings 246 227 $ 227 $ 221 $ 314 $ 315
Yield-To-Maturity 1.41% 1.43% 1.41% 1.31% 1.82% 1.93%
Weighted Maturity(Days) 655 465 455 419 230 255
Effective Duration 0.63 0.35 0.35 0.35 0.15 0.17
RDA
Month-End Book Value*"" $ 285,335 $ 295,407 $ 304,221 $ 287,243 $ 256,271 $ 261,734
Month-End Market Value"*" $ 285,685 $ 295,786 $ 304,733 $ 287,788 $ 256,897 $ 262,477
Paper Gain(Loss) $ 350 $ 379 $ 512 $ 545 $ 626 $ 743
Prior Year Book Variance $ 32,808 $ 27,030 $ 33,805 $ 5,970 $ 4,419 $ 17,060
Interest Earnings 175 174 $ 168 $ 183 $ 262 $ 257
Yield-To-Maturity 0.74% 0.70% 0.69% 0.72% 1.21% 1.21%
Weighted Maturity(Days) 237 229 223 236 188 185
Effective Duration 0.34 0.35 0.34 0.38 0.16 0.17
"'` Omits SLGSs.
City of Palm Desert-- Portfolio Characteristics
. April 30, 2010
Dol(ars in Thousands
Aaeins�Interval Market Value 1" -------------__ --------------------------._-__.,,�
< 1 M $ 57,536 i General Fund Ageing
<2M -
<3M 2,085 100
..-----___..____..____,�._____._,_e_______._._.____.._._._,..._w_.._---._
j 1
<6M 18,293 $p � j
< 1 YR 16,281 0 � s
0 60 ! ;
<2YR 20,369 - 40 i ;
<3YR 30,941 � 40 E i
i
<4YR - a 20 13 �� 14 2� +
<5YR - � 0 '� 0 0 0 �
>5YR - � � '
Total: $ 145,505 � � � � � � � � � � � i
1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR �
----- _ --
_ _ _ __
Ratinas'` Market Value Credit Quality �
AAA $ 99,968 50%
AA 21,4$5
A 7,025 Unrated** qq
Unrated"" 68,603 35% A 11% I
Total: $ 197,081 4% �
J
Sector Market Value I Asset Allocation
_ MMF $ 2g�g2g MTNs I
A encies 14%CAMP
Agencies 65,420 34��0 =�,,� 2%
MTNs 28,510 r���:
CAMP 4,720 �����'�""� RDA Loan
RDA Loan 22,655 11%
MMF Energy Loan
Energy Loan 4,349 15% LAIF 2%
LAI F 41,599 22��a
Total: $ 197,081
�-- .- -- -
� _____ _.. - --__ _ -- -- �
Month Citv Yield LAIF Yield Variance Performance
May09 2.04 1.53 0.51
Jun2.03 1.38 0.65 � 2.4 -_._.___�___..�.-----��__._._._._...------.-.--__.,._..___..___._._.-,
Jul 1.90 1.04 0.$6 �
Aug 1.79 0.93 0.87 1.6 �
Sep 1.74 0.76 0.98 a
Oct 1.69 0.65 1.05 d
Nov 1.93 0.61 1.32 } 0.8
Dec 1.82 0.57 1.26 0.0
Jan10 1.31 0.56 0.76
Feb 1.41 0.58 0.83 � May09un Jul AugSepOctNovDedan1ffebMarApr
_-- _ - - _
Mar 1.43 0.55 0.88 ■ o
Apr 1.41 0.59 0.83
'` Standard and Poors
"" LAIF,and City Loan to RDA Page 2
City of Palm Desert
Portholio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 3,795,000 BANK OF AMERICA 5.38 8/15/11 $ 3,854,893 4.05 104.99 $ 3,984,268 A2 A
$ 3,000,000 BANK OF AMERICA 4.25 10/1/10 $ 3,012,490 3.20 101.35 $ 3,040,632 A2 A
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21l10 $ 2,028,613 5.63 101.94 $ 2,074,542 Aa2 AA+
$ 1,891,000 GENERAL ELECTRIC 6.88 11l15l10 $ 1,901,909 5.65 103.20 $ 1,951,493 Aa2 AA+
$ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,006,437 5.67 104.18 $ 2,083,698 Aa2 AA+
$ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 3,994,268 3.23 101.94 $ 4,042,044 Aa2 AA+
$ 3,000,000 TOYOTA 4.35 12/15/10 $ 3,072,750 0.44 102.10 $ 3,062,874 Aa1 AA
$ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,015,167 5.02 101.98 $ 2,039,588 A1 AA
$ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,054,973 5.13 105.23 $ 4,209,272 A1 AA
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,997,706 5.09 101.09 $ 2,021,826 A1 AA
$ 27,686,000 Subtotal $ 27,939,207 4.09 $ 28,510,237
Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,000,026 4.61 100.00 $ 3,000,000 Aaa AAA
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,000,026 4.61 100.00 $ 3,000,000 Aaa AAA
$ 3,000,000 FED FARM CREDIT BANK 3.50 10/3/11 $ 3,106,758 0.97 103.78 $ 3,113,438 Aaa AAA
_ $ 3,000,000 FED HOME LOAN BANK 1.63 7/27/11 $ 3,029,293 1.18 101.09 $ 3,032,813 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 0.44 10l7/10 $ 3,001,548 0.32 100.09 $ 3,002,813 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 1.63 3/16/11 $ 3,029,653 0.41 100.91 $ 3,027,188 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 2,069,814 5.47 100.75 $ 2,077,465 Aaa AAA
$ 3,000,000 FED HOME LOAN MTG CORP 1.63 4/26/11 $ 3,028,965 0.60 101.03 $ 3,030,938 Aaa AAA
$ 3,000,000 FED HOME LOAN MTG CORP 4.13 2/24/11 $ 3,087,684 0.52 102.78 $ 3,083,438 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.25 8/15/10 $ 1,993,457 5.47 101.13 $ 2,022,500 Aaa AAA
$ 3,000,000 FED NATIONAL MTG ASSOC 1.75 12/28/12 $ 2,995,953 1.91 100.09 $ 3,002,813 Aaa AAA
$ 31,062,000 Subtotal $ 31,343,178 2.16 $ 31,393,403
Agencies--Callable
$ 3,000,000 FED HOME LOAN BANK 1.00 10/28/11 $ 3,000,000 1.00 100.13 $ 3,003,750 Aaa AAA
$ 1,000,000 FED HOME LOAN BANK 1.38 6/11/12 $ 998,247 1.46 100.00 $ 1,000,000 Aaa AAA
$ 15,000,000 FED HOME LOAN BANK 1.38 6/28/12 $ 14,973,631 1.82 100.00 $ 15,000,000 Aaa AAA
$ 2,980,000 FED HOME LOAN BANK 1.88 11/19/12 $ 2,985,838 1.61 100.66 $ 2,999,556 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 1.85 12/21/12 $ 3,000,842 1.82 99.94 $ 2,998,125 Aaa AAA
$ 3,000,000 FED HOME LOAN MTG CORP 1.25 1/26/12 $ 3,000,000 1.25 99.97 $ 2,999,154 Aaa AAA
$ 6,000,000 FED NATIONAL MTG ASSOC 1.75 12/28/12 $ 5,992,236 1.90 100.09 $ 6,005,625 Aaa AAA
$ 33,980,000 Subtotal $ 33,950,794 1.68 $ 34,006,210
Local Agency Investment Fund
$ 41,598,636 L.A.I.F. 0.00 5/1/10 $ 41,598,636 0.59 100.00 $ 41,598,636 U U
$ 41,598,636 Subtotal $ 41,598,636 0.59 $ 41,598,636
"U"=Unrated Page 3
City of Palm Desert
Portholio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P
Local Agency Investment Fund
$ 4,732,919 C.A.M.P. 0.00 5/1/10 $ 4,732,919 0.17 100.00 $ 4,732,919 U AAA
$ 7,330 C.A.M.P.(DESERT WILLOW) 0.00 5/1/10 $ 7,330 0.17 100.00 $ 7,330 U AAA
$ 4,740,249 Subtotal $ 4,740,249 0.17 $ 4,740,249
Money Market Fund
$ 29,828,361 WF ADVANTAGE GOVT MMF 0.00 5/1/10 $ 29,828,361 0.00 100.00 $ 29,828,361 Aaa AAA
$ 29,828,361 Subtotai $ 29,828,361 0.00 $ 29,828,361
City Loan to RDA
$ 22,655,000 CITY OF PALM DESERT 0.00 5/1/40 $ 22,655,000 0.59 100.00 $ 22,655,000 U U
$ 22,655,000 Subtotal $ 22,655,000 0.59 $ 22,655,000
City Loan to Energy Program
$ 4,349,000 CITY OF PALM DESERT 0.00 6J30/35 $ 4,349,000 4.00 100.00 $ 4,349,000 U U
$ 4,349,000 Subtotal $ 4,349,000 4.00 $ 4,349,000
Total Investments
$ 195,899,246 $ 196,404,426 1.41 $ 197,081,096
Cash
$ 5,181,174 CITY MAIN CHKG 0.00 5/1/10 $ 5,181,174 0.00 100.00 $ 5,181,174 U U
$ 1,427,912 DESERT WILLOW CHKG 0.00 5/1/10 $ 1,427,912 0.00 100.00 $ 1,427,912 U U
$ 278,507 RECREATIONAL FAC CHKG 0.00 5/1/10 $ 278,507 0.00 100.00 $ 278,507 U U
$ 6,887,593 Subtotaf $ 6,887,593 $ 6,887,593
Total Investments and Cash
$ 202,786,840 $ 203,292,019 $ 203,968,689
"U"= Unrated Page 4
City of Palm Desert
Portholio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Corporate Issuers (Market Value)
BANK OF AMERICA 3.44%
GENERAL ELECTRIC 4.98%
TOYOTA 1.50%
WACHOVIA 1.00%
WELLS FARGO BANK 3.05%
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 4.47%
FED HOME LOAN BANK 16.70°/a
FED HOME LOAN MTG CORP 5.49%
FED NATIONAL MTG ASSOC 5.41°/a
"U"= Unrated Page 5
Palm Desert Redevelopment Agency-- Portfolio Characteristics
April 30, 2010
Dollars in Thousands
----- ------- -----
Asteins�Interval Market Value �1
< 1 M $ 80,460 ; Portfolio Ageing w/o SLGSs ;
�2M - �
<3M 3,022 4 100 -__..__...__�,._____._....__...__.._._.___.__..__.._._._,_.__....____...__...___.___� �
<6M 10,919 ; gp ; '
< 1YR 16,161 ! 0 60 _ 59 f �
<2YR 18,280 ' •- ;
<3YR 3,g22 I o 40 ` l
<4YR - ( a 2� $ 12 13 i
<5YR - � � 3 � � � i
0
>5YR 3,151 < < < < < < < < < > '
Total: $ 135,815 ��� 1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR �
,_��.�
- - - __ - �
ualit " Market Value Credit Quality qq
AAA $ 129,622 2% A
AA 6,097 ,qqq 4%
A 10,071 45%
Unrated"* 139,212 Unrated"
Total: $ 285,002 49%
Sector Market Value Asset Allocation MTNs
MMF $ 57,704 Agencies 6% CAMP
Agencies 35,955 0 12/o
13/o
MTNs 16,168 I LAIF
CAMP 32,811 MMF 17°/a
LAI F 49,787 Z�%
EIP
EIP 3,151 1%
LAIF/Bond Proceeds 89,426 �AIF/Bond
Total: $ 285 002 Proceeds
' 31%
__ __
_ _- --- ----
.
Month RDA Yield LAIF Yield Variance Performance �
May09 1.06 1.53 -0.47
Jun1:30 1.38 -0.08 2.1 --__.____.._----___.___.____.�----__.___.___..__________._-_.
Jul 1.31 1.04 0.27 �
Aug 1.19 0.93 0.26 1.4 �
Sep 0.95 0.76 0.19 � �
v
Oct 0.96 0.65 0.32 � d �� �
Nov 121 0.61 0.59 � � i
Dec 1.21 0.57 0.64 � !
Jan10 0.72 0.56 0.16 0.0 ` `' ' ' '
Feb 0.69 0.58 0.12 � MayO�un Jul Aug Sep Oct Nov DecJan1�eb Mar Apr I
I
Mar 0.70 0.55 0.15 ■LAIFreld �RDAYield I
Apr 0.74 0.59 0.15
* Standard and Poors
"' LAIF Page 6
Palm Desert Redevelopment Agency
Portfolio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 3,000,000 ABBOTT LABS 3.75 3/15/11 $ 3,081,999 0.60 102.75 $ 3,082,647 A1 AA
$ 3,450,000 BEAR STEARNS(JPM) 6.95 8/10/12 $ 3,840,791 1.83 111.07 $ 3,832,070 Aa3 A+
$ 3,000,000 JP MORGAN CHASE 3.13 12/1/11 $ 3,105,028 0.69 0.00 $ 3,105,028 Aa3 A+
$ 3,000,000 JP MORGAN CHASE 5.60 6!1/11 $ 3,153,114 0.85 104.46 $ 3,133,947 Aa3 A+
$ 3,000,000 WAL-MART 4.13 7/1/10 $ 3,005,826 2.91 100.47 $ 3,014,061 Aa2 AA
$ 15,450,000 Subtotal $ 16,186,758 1.39 $ 16,167,754
Agencies--Coupon
$ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,904,595 4.65 101.78 $ 4,987,281 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,990,059 5.49 103.66 $ 2,073,125 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,989,927 5.50 103.66 $ 2,073,125 Aaa AAA
$ 2,890,000 FED HOME LOAN BANK 2.88 3/11/11 $ 2,949,005 0.49 101.91 $ 2,945,091 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 0.50 11/29/10 $ 3,003,614 0.36 99.97 $ 2,999,063 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 1.13 12/9/11 $ 3,009,277 0.96 100.34 $ 3,010,313 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,008,749 5.54 102.50 $ 2,050,000 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,750,364 5.54 102.50 $ 3,827,350 Aaa AAA
$ 2,940,000 FED NATIONAL MTG ASSOC 1.75 3/23/11 $ 2,972,892 0.43 101.03 $ 2,970,319 Aaa AAA
$ 9,000,000 FED NATIONAL MTG ASSOC 1.00 11/23/11 $ 9,008,320 1.00 100.22 $ 9,019,688 Aaa AAA
$ 35,464,000 Subtotal $ 35,586,801 2.59 $ 35,955,353
Local Government Investment Pool
$ 49,764,629 L.A.I.F. 0.00 5/1/10 $ 49,764,629 0.59 100.00 $ 49,764,629 U U
$ 22,090 L.A.I.F.(HOUSING) 0.00 5/1/10 $ 22,090 0.59 100.00 $ 22,090 U U
$ 49,786,719 Subtotal $ 49,786,719 0.59 $ 49,786,719
Local Government Investment Fund
$ 17,469,371 L.A.I.F./WELLS FARGO 0.00 5/1/10 $ 17,469,371 0.59 100.00 $ 17,469,371 U AA
$ 4,804,427 L.A.I.F./WELLS FARGO 0.00 5/1/10 $ 4,804,427 0.59 100.00 $ 4,804,427 U AA
$ 25,153,920 L.A.I.F./WELLS FARGO 0.00 5/1/10 $ 25,153,920 0.59 100.00 $ 25,153,920 U AA
$ 10,375,760 L.A.I.F./WELLS FARGO 0.00 5/1l10 $ 10,375,760 0.59 100.00 $ 10,375,760 U AA
$ 15,133,500 L.A.I.F./WELLS FARGO 0.00 5/1/10 $ 15,133,500 0.59 100.00 $ 15,133,500 U AA
$ 16,488,631 L.A.I.F./WELLS FARGO 0.00 5/1/10 $ 16,488,631 0.59 100.00 $ 16,488,631 U AA
$ 89,425,610 Subtotal $ 89,425,610 0.59 $ 89,425,610
Local Government Investment Fund
$ 30,699,323 C.A.M.P. 0.00 5l1/10 $ 30,699,323 0.17 100.00 $ 30,699,323 U AAA
$ 2,112,057 C.A.M.P. (HOUSING) 0.00 5/1/10 $ 2,112,057 0.17 100.00 $ 2,112,057 U AAA
$ 32,811,380 Subtotal $ 32,811,380 0.17 $ 32,811,380
"U"=Unrated Page 7
Palm Desert Redevelopment Agency
Portfolio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Money Market Fund
$ 57,704,167 WF ADVANTAGE GOVT MMF 0.00 5/1/10 $ 57,704,167 0.00 100.00 $ 57,704,167 Aaa AAA
$ 57,704,167 Subtotal $ 57,704,167 0.00 $ 57,704,167
Municipal Bonds
$ 3,151,000 CITYOF PALM DESERT 3.00 9/2/29 $ 3,151,000 3.00 0.00 $ 3,151,000 U AA
$ 3,151,000 Subtotal $ 3,151,000 3.00 $ 3,151,000
Total Investments
$ 283,792,876 $ 284,652,436 0.74 $ 285,001,983
Cash
$ 275,370 HOUSING AUTH CHKG 0.00 5/1/10 $ 275,370 0.00 100.00 $ 275,370 U U
$ 407,622 HOUSING AUTH TRUST 0.00 5/1/10 $ 407,622 0.00 100.00 $ 407,622 U U
$ 682,992 Subtotal $ 682,992 0.00 $ 682,992
Total Investments and Cash
$ 284,475,868 $ 285,335,428 $ 285,684,975
%of Portfoiio
Corporate Issuers (Market Value)
ABBOTT LABS 1.08%
BEAR STEARNS(JPM) 1.34%
JP MORGAN CHASE 2.18%
WAL-MART 1.06%
"U"=Unrated Page 8
Palm Desert Redevelopment Agency
Portfolio Holdings
April 30, 2010
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 1.75%
FED HOME LOAN BANK 4.59°/a
FED HOME LOAN MTG CORP 2.06%
FED NATIONAL MTG ASSOC 4.20%
, "U"=Unrated Page 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 April 30, 2010,the City and the RDA investment portfolios were in compliance with all applicable
federal, state,and locai 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.
Interactive Data Corporation provided the data that was 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 May 25,2010,
��zs G��o�, 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 %of RDA
Code Investment Cate o Maturity Limit S&P/Mdys Maturit Limit S&P/Mdys Portfolio Portfolio
53601 a Palm Desert Bonds 5 Years No Limit 2.2% 1.1%
53632 c Savin s Accounts No Limit No Limit No Limit No Limit
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 Nof Authorized
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 33.3% 12.5%
53601 Bankers's Acceptances 180 Da s 40% 180 Da s 40% A-1 8�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 Re os 1 Year No Limit 30 Da s 20°/a AAA&Aaa - -
53601(i Reverse Repos 92 Days 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 14.2% 5.7%
53601 k Mutual Funds 90 Da s 20% AAA&Aaa 90 Da s 20%(2) AAA&Aaa 15.2% 20.3%
53601(I) Trust Indenture Debt NotAuthorized
53601 m Secured Bank Deposits 5 Years No Limit Not Authorized
53601(k) Local Government AAA&Aaa AAA&Aaa
Investment Pools 90 Da s 20% or Advisor 90 Da s 20%(2) or Advisor 2.4% 11.5%
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized
Securities AA(Security
16429.1 b LAIF No Limit No Limit 21.2% 48.9%
(1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 88.5% 100.0%
(2) The City Energy Independence Program has been approved by the Palm Desert City Council.
(3) Maximum limit for mutual funds and local overnment investment pools,excludin bond proceeds.
, ' Certified California Municipal Treasurer Page 10