Loading...
HomeMy WebLinkAboutInvstmnt Rprt - May 2010 ,,._..._ City af P,alrn Desert ,.-,-- � � City and Redevelopment Ar�gency Pc�rkfolios � � CCIMPLIANCE AIVALYStS ANp 1�iVESTRAENT REPt)RT May 2010 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. Many economists have reversed their position of a month ago, and now believe that there is little likelihood that the FOMC will raise short-term interest rates anytime soon. This reassessment was prompted by the European debt crisis, low inflation, and meager job growth. The European debt crisis continued to widen. On June 4, Hungary announced that it was in danger of defaulting on its debt. Runs began on Hungary's currency and debt; the Euro fell below$1.20 for the first time; and the Dow Jones Industrial Average closed below 10,000. Bond investors reacted by demanding higher yields on public debt issued by Greece, Italy, Spain, Portugal, France, Belgium, and Austria. Nervous investors purchased U.S. Treasuries, pushing yields down near the bottom for this year. Robert Reich, former Secretary of Labor for the Clinton Administration, has argued that the U.S. is falling into a double-dip recession. He cited a deteriorating labor market; the rising average length of unemployment; falling median wages; and weak consumer spending, as factors. Reich stated that four temporary boosts have so far kept the U.S. economy out of a : double dip: (1)the federa� stimulus (75% of which has been spent); (2) near-zero interest rates; (3)capital replacements (e.g., cars and appliances); and (4)the hiring of Census workers. When these boosts end, Reich believes that the U.S. will ' be in a dip unless the Federal Government provides more stimulus. ��s ���ori, c.c.�r. City Treasurer PORTFOLIO STATISTICS Dollars in Thousands MAY-10 APR-10 MAR-10 FEB-10 JAN-10 DEC-09 CITY Month-End Book Value*'"' $ 206,132 $ 203,292 $ 197,952 $ 200,124 $ 218,094 $ 202,229 Month-End MarketValue"""' $ 206,723 $ 203,969 $ 198,665 $ 201,136 $ 219,068 $ 203,250 PaperGain(Loss) $ 591 $ 677 $ 713 $ 1,012 $ 974 $ 1,021 Prior Year Book Variance $ (18,157) $ (14,671) $ (18,722) $ (19,345) $ 5,356 $ 3,176 Interest Earnings 222 246 227 $ 227 $ 221 $ 314 Yield-To-Maturity 1.25% 1.41% 1.43% 1.41% 1.31% 1.82% Weighted Maturity(Days) 604 655 465 455 419 230 Effective Duration 0.57 0.63 0.35 0.35 0.35 0.15 RDA Month-End Book Value"�* $ 299,721 $ 285,335 $ 295,407 $ 304,221 $ 287,243 $ 256,271 Month-End Market Value"*'" $ 299,998 $ 285,685 $ 295,786 $ 304,733 $ 287,788 $ 256,897 Paper Gain(Loss) $ 277 $ 350 $ 379 $ 512 $ 545 $ 626 Prior Year Book Variance $ 6,001 $ 32,808 $ 27,030 $ 33,805 $ 5,970 $ 4,419 Interest Earnings 171 175 174 $ 168 $ 183 $ 262 Yield-To-Maturity 0.69% 0.74% 0.70% 0.69% 0.72% 1.21% Weighted Maturity(Days) 226 237 229 223 236 188 Effective Duration 0.31 0.34 0.35 0.34 0.38 0.16 "** Omits SLGSs. City of Palm Desert-- Portfolio Characteristics May 31, 2010 Dollars in Thousands A�eina Interval Market Value - --- --...-- ----- _------ -- -_..�, < 1 M $ 60,327 General Fund Ageing � `2M 2,071 � <3M 6,056 � �6M 100 �__.,_...... ._._..__._, _�..�..___ _..____ �._____ 14,055 , .._ _... < 1 YR � gp � 14,256 0 <2YR 20,276 0 60 <3YR 31,063 0 41 ;' <4YR o 40 � <5YR _ I a 20 � 4 9 10 14 21 � >5YR _ � � 0 0 ; � � 3 Total. $ 148,104 � < < < < < < < < < > ? 1 M 2M 3M 6M 1 YR 2YR 3YR 4YR 5YR 5YR � J -.-_ �.�_ ---- -- _- __- --- Ratinas'` Market Value Credit Quality � � � $ 98,076 48% '�` 21,354 � A 6,982 Unrated"" 11% Unrated"" 76,603 � 3g��o A Total: $ 203,015 � 3% __ Sector Market Value Asset Allocation MMF � 29 g�9 MTNs Agencies 59 2�6 14%CAMP MTNs 27,g09 Agencies „ �� 5% CAMP g 408 290�0 ���„n�� RDA Loan RDA Loan ��% 22,655 MMF Energy Loan Energy Loan 4,349 15% �AIF 2% I LAIF 49,599 24% Total: $ 203,015 ------- / -_ - _ --.- _ - __- -- _ _ __ Month Citv Yield LAIF Yield Variance Performance Jun09 2.03 1.38 0.65 Jul 1.90 1.04 0.86 2.4 ..._...__._..._._____.�_._____.__. Aug 1.79 0.93 0.87 ��W���Yu����_� Sep 1 J4 0.76 0.98 ( e 1.6 Oct 1.69 0.65 1.05 Nov 1.93 0.61 1.32 m � Dec 1.82 0.57 �.26 } 0.8 I Jan10 1.31 0.56 p.7g ! Feb 1.41 p.5g 0 83 � 0.0 Mar 1.43 0.55 Jun09Jul Aug�epOctNovDedan1�ebMarAprMay 0.88 APr 1.41 0.59 0.83 m o May 1.25 0.56 0.69 " Standard and Poors "* LAIF,and City Loan to RDA Page 2 City of Palm Desert Portfolio Holdings May 31, 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 $ 3,851,020 4.05 104.09 $ 3,950,269 A2 A $ 3,000,000 BANK OF AMERICA 4.25 10/1/10 $ 3,009,992 3.20 101.05 $ 3,031,572 A2 A $ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 2,029,740 5.63 101.39 $ 2,063,201 Aa2 AA+ $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,900,222 5.65 102.49 $ 1,938,078 Aa2 AA+ $ 2,000,000 GENERAL ELECTRIC 6.13 2/22/11 $ 2,005,773 5.67 103.61 $ 2,072,100 Aa2 AA+ $ 3,965,000 GENERAL ELECTRIC 4.88 10/21/10 $ 3,989,103 3.23 101.39 $ 4,019,947 Aa2 AA+ $ 3,000,000 TOYOTA 4.35 12/15/10 $ 3,063,006 0.44 101.70 $ 3,050,913 Aa1 AA $ 2,000,000 WACHOVIA 7.80 8l18/10 $ 2,010,915 5.02 101.33 $ 2,026,516 A1 AA $ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,051,308 5.13 104.25 $ 4,169,956 A1 AA $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,998,408 5.09 100.67 $ 2,013,386 A1 AA $ 27,686,000 Subtotal $ 27,909,490 4.09 $ 28,335,938 Agencies--Coupon $ 3,000,000 FED FARM CREDIT BANK 3.50 10J3/11 $ 3,100,503 0.97 103.66 $ 3,109,688 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 7/27/11 $ 3,027,323 1.18 101.09 $ 3,032,813 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 0.44 10/7/10 $ 3,001,251 0.32 100.06 $ 3,001,875 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.63 3/16/11 $ 3,026,829 0.41 100.91 $ 3,027,188 Aaa AAA $ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 2,071,965 5.47 100.44 $ 2,071,021 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.63 4/26/11 $ 3,026,517 0.60 100.97 $ 3,029,063 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.13 2/24/11 $ 3,078,706 0.52 102.56 $ 3,076,875 Aaa AAA $ 2,000,000 FED NAT MTG ASSOC 4.25 8/15/10 $ 1,995,345 5.47 100.81 $ 2,016,250 Aaa AAA $ 3,000,000 FED NAT MTG ASSOC 1.75 12/28/12 $ 2,996,079 1.91 100.50 $ 3,015,000 Aaa AAA $ 25,062,000 Subtotal $ 25,324,518 1.59 $ 25,379,771 Agencies--Callable $ 3,000,000 FED HOME LOAN BANK 1.00 10/28/11 $ 3,000,000 1.00 100.19 $ 3,005,625 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.38 6/11/12 $ 998,316 1.46 100.00 $ 1,000,000 Aaa AAA $ 15,000,000 FED HOME LOAN BANK 1.38 6/28/12 $ 14,974,649 1.82 100.06 $ 15,009,375 Aaa AAA $ 2,980,000 FED HOME LOAN BANK 1.88 11/19/12 $ 2,985,647 1.61 100.59 $ 2,997,694 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.85 12/21/12 $ 3,000,815 1.82 100.38 $ 3,011,250 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 1.25 1/26/12 $ 3,000,000 1.25 100.25 $ 3,007,443 Aaa AAA $ 6,000,000 FED NATIONAL MTG ASSOC 1.75 12/28/12 $ 5,992,480 1.90 100.50 $ 6,030,000 Aaa AAA $ 35,980,000 Subtotal $ 33,951,908 1.68 $ 34,061,387 Local Agency Investment Fund $ 49,598,636 L.A.I.F. 0.00 6/1/10 $ 49,598,636 0.56 100.00 $ 49,598,636 U U $ 49,598,636 Subtotal $ 49,558,636 0.56 $ 49,598,636 "U"= Unrated Page 3 City of Palm Desert Portfotio Holdings May 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Local Agency Investment Fund $ 8,800,216 C.A.M.P. 0.00 6/1/10 $ 8,800,216 0.20 100.00 $ 8,800,216 U AAq $ 607,392 C.A.M.P.(DESERT WILLOW) 0.00 6/1/10 $ 607,392 0.20 100.00 $ 607,392 U AAA $ 9,407,609 Subtotal $ 9,407,609 0.20 $ 9,407,609 Money Market Fund $ 29,818,942 WF ADVANTAGE GOVT MMF 0.00 6/1/10 $ 29,818,942 0.00 100.00 $ 29,818,942 Aaa AAA $ 29,818,942 Subtotal $ 29,818,942 0.00 $ 29,818,942 City Loan to RDA $ 22,655,000 CITY OF PALM DESERT 0.00 6/1/40 $ 22,655,000 0.56 100.00 $ 22,655,000 U U $ 22,655,000 Subtotal $ 22,655,000 0.56 $ 22,655,000 City Loan to Energy Program $ 4,349,000 CiTY OF PAIM DESERT 0.00 6/30/35 $ 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 $ 204,557,187 $ 203,015,102 1.25 $ 203,606,283 Cash $ 1,928,198 CITY MAIN CHKG 0.00 6/1/10 $ 1,928,198 0.00 100.00 $ 1,928,198 U U $ 962,243 DESERT WILLOW CHKG 0.00 6/1/10 $ 962,243 0.00 100.00 $ 962,243 U U $ 226,759 RECREATIONAL FAC CHKG 0.00 6l1/10 $ 226,759 0.00 100.00 $ 226,759 U U $ 3,117,201 Subtotal $ 3,117,201 $ 3,117,201 Total Investments and Cash $ 207,674,388 $ 206,132,303 $ 206,723,484 "U"= Unrated Page 4 City of Palm Desert Portfotio Holdings May 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8�P %of Portfolio Corporate Issuers (Market Value) BANK OF AMERICA 3.38% GENERAL ELECTRIC 4 ggo/a TOYOTA 1.48% WACHOVIA p.ggo/a WELLS FARGO BANK 2,99o�a %of Portfolio Agency Issuers (Market Value) FED FARM CREDIT BANK 1.50% FED HOME LOAN BANK 16.49% FED HOME LOAN MTG CORP 5.41% FED NAT MTG ASSOC 5.35% "U"= Unrated Page 5 Palm Desert Redevelopment Agency-- Portfolio Characteristics May 31, 2010 Dollars in Thousands Aaeina Interval Market Value ------- -- ---- ------ _ < 1 M $ gq 837 Portfolio Ageing w/o SLGSs ����� `2M 3,007 � <3M 1 - � 100 .._._�.._. ..___.___.__._�.. . __.._._ . _..___. __..�,._....._.. � <6M 10,817 s i < 1YR 16,116 = 80 63 ' 1 <2YR 18,264 i o 60 � � <3YR 3,789 � � 40 <4YR � ° ' <5YR � 20 � 7 11 12 i 1 0 3 � � 2 i >5YR 3,151 � � Total: � < < < < < < < < < > � $ 149,981 1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR � �...�_ _� ,._____ _ __ _-__-- --.� -_-. __ -- -- -- ualit * Market Value Credit Quality � � $ 152,630 � AAA 2% �` 6,075 51% o A 10,004 3/o Unrated"` 130,560 Total: $ 299,269 Unrated`* i 44% � � Sector Market Value Asset Allocation MMF MTNs $ 66,380 Agencies 5% CAMP Agencies 35,914 12% 16°/a MTNs 16,079 CAMP 47,185 MMF LAIF 49 78� 22% LAfF EIP 17% 3,151 EIP I LAIF/Bond Proceeds 80,773 LAIF/Bond 1% Total: $ 299,269 Proceeds 27% ---- . -- - -. Month RDA Yield LAIF Yield Variance Performance Jun09 1.30 1.38 -0.08 Jui 1.31 1.04 p.27 1.5 -�......_.___.___�.___._._ __..__,__.._________--_.____._� Aug 1.19 0.93 0.26 Sep 0.95 0.76 0.19 Oct 0.96 0.65 0.32 = 1.0 � Nov 1.21 0.61 0.59 a � Dec 1.21 0.57 0.64 } 0.5 Jan10 0.72 0.56 0.16 ! Feb 0.69 0.58 0.12 0.0 ! Mar 0.70 0.55 p.�� Jun09Ju1 Aug Sep Oct Nov DecJan1�eb Mar Apr May AP►' 0.74 0.59 0.15 ■LAIF Yieid O RDA Yield May 0.69 0.56 0.13 * Standard and Poors " LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings May 31, 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 $ 3,074,165 0.60 102.28 $ 3,068,484 A1 AA $ 3,450,000 BEAR STEARNS(JPM) 6.95 8/10/12 $ 3,826,476 1.83 109.82 $ 3,788,959 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 3.13 12/1/11 $ 3,099,501 0.69 104.15 $ 3,099,501 Aa3 A+ $ 3,000,000 JP MORGAN CHASE 5.60 6/1/11 $ 3,141,336 0.85 103.85 $ 3,115,548 Aa3 A+ $ 3,000,000 WAL-MART 4.13 7/1/10 $ 3,002,913 2.91 100.22 $ 3,006,549 Aa2 AA $ 15,450,000 Subtotal $ 16,144,391 1.39 $ 16,079,041 Agencies--Coupon $ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,903,617 4.65 101.44 $ 4,970,438 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,991,021 5.49 103.38 $ 2,067,500 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.88 3l11/11 $ 1,990,902 5.50 103.38 $ 2,067,500 Aaa AAA $ 2,890,000 FED HOME LOAN BANK 2.88 3/11/11 $ 2,943,295 0.49 101.78 $ 2,941,478 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 0.50 11/29/10 $ 3,003,092 0.36 100.09 $ 3,002,813 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 1.13 12/9/11 $ 3,008,795 0.96 100.50 $ 3,015,000 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,006,790 5.54 101.97 $ 2,039,375 Aaa AAA $ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,746,701 5.54 101.97 $ 3,807,513 Aaa AAA � $ 2,940,000 FED NAT MTG ASSOC 1.75 3/23/11 $ 2,969,827 0.43 100.97 $ 2,968,481 Aaa AAA $ 9,000,000 FED NAT MTG ASSOC 1.00 11/23/11 $ 9,007,876 1.00 100.38 $ 9,033,750 Aaa AAA $ 35,464,000 Subtotal $ 35,571,917 2.59 $ 35,913,848 Local Government Investment Pool $ 49,764,629 L.A.I.F. 0.00 6/1/10 $ 49,764,629 0.56 100.00 $ 49,764,629 U U $ 22,090 L.A.I.F.(HOUSING) 0.00 6/1/10 $ 22,090 0.56 100.00 $ 22,090 U U $ 49,786,719 Subtotal $ 49,786,719 0.56 $ 49,786,779 Local Government Investment Pool $ 17,469,371 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 17,469,371 0.56 100.00 $ 17,469,371 U AA $ 4,804,427 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 4,804,427 0.56 100.00 $ 4,804,427 U AA $ 25,153,920 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 25,153,920 0.56 100.00 $ 25,153,920 U AA $ 1,700,760 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 1,700,760 0.56 100.00 $ 1,700,760 U AA $ 15,133,500 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 15,133,500 0.56 100.00 $ 15,133,500 U AA $ 16,511,283 L.A.I.F./WELLS FARGO 0.00 6/1/10 $ 16,511,283 0.56 100.00 $ 16,511,283 U AA $ 80,773,262 Subtotal $ 80,773,262 0.56 $ 80,773,262 Local Government Investment Pool $ 45,072,709 C.A.M.P. 0.00 6/1l10 $ 45,072,709 0.20 100.00 $ 45,072,709 U AAA $ 2,112,408 C.A.M.P. (HOUSING) 0.00 6/1I10 $ 2,112,408 0.20 100.00 $ 2,112,408 U AAA $ 47,185,117 Subtotal $ 47,185,117 0.20 $ 47,185,117 "U"=Unrated Page 7 Palm Desert Redevelopment Agency Portfolio Holdings May 31, 2010 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Money Market Fund $ 66,379,641 WF ADVANTAGE GOVT MMF 0.00 6/1/10 $ 66,379,641 0.00 100.00 $ 66,379,641 Aaa AAA $ 66,379,641 Subtotal $ 66,379,641 0.00 $ 66,379,641 Municipal Bonds $ 3,151,000 CITY OF PALM DESERT 3.00 9/2/29 $ 3,151,000 3.00 100.00 $ 3,151,000 U AA $ 3,151,000 Subtotal $ 3,151,000 3.00 $ 3,151,000 Total Investments $ 298,189,739 $ 298,992,046 0.69 $ 299,268,627 Cash $ 323,777 HOUSING AUTH CHKG 0.00 6/1/10 $ 323,777 0.00 100.00 $ 323,777 U U - $ 405,238 HOUSING AUTH TRUST 0.00 6/1/10 $ 405,238 0.00 100.00 $ 405,238 U U $ 729,015 Subtotal $ 729,015 $ 729,015 Total Investments and Cash $ 298,918,754 $ 299,721,061 $ 299,997,642 %of Portfolio Corporate issuers (Market Value) ABBOTT LABS 1.02% BEAR STEARNS(JPM) 1.26% JP MORGAN CHASE 2.07% WAL-MART 1.00% � "U"= Unrated Page 8 Palm Desert Redevelopment Agency Portfolio Holdings May 31, 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 1.66% - FED HOME LOAN BANK 4.36% FED HOME LOAN MTG CORP �.95% FED NAT MTG ASSOC 2,26% � "U"= Unrated Page 9 ' STATEMENT OF COMPUANCE 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 Paim Desert Audit, Investment, and Finance Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended May 31,2010,the City and the RDA investment portfolios were in compliance with ail applicable federai,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. 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 heid in escrow accounts,and are therefore not included in this report as assets. All balances are bank balances. Respectfully Submitted on June 22,2010, ��s ���, c.c.�t,r � City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City�nvestment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA Code Investment Cate o Maturit Limit S&P/Md Maturit Limit S&P/Md s Portfolio Portfolio 53601 a Palm Desert Bonds 5 Years No Limit 0.0% 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 ency Debt 5 Years No Limit Nof Authorized 53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 29.2% 11.9°/a 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% AAA&Aaa 53601 i Reverse Repos 92 Da s 20% Not Authorized 53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 13.8% 5.4% 53601 k Mutual Funds 90 Days 20% AAA 8�Aaa 90 Days 20%(2) AAA&Aaa 14.7% 22.2°!0 53601 I Trust Indenture Debt Nof Authorized 53601(m Secured Bank Deposits 5 Years No Limit NotAuthorized 53601(k) Local Government AAA&Aaa AAA&Aaa Investment Pools 90 Da s 20% or Advisor 90 Da s 20%(2) or Advisor 4.6% 15.8% 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& NotAuthorized Securities AA(Security) 16429.1 b LAIF No Limit No Limit 24.4% 43.7% (1) The City loan to RDA,which is not a bond, has been approved by the Palm Desert City Council. 86.7% 100.0% (2) 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, excluding bond proceeds. ' Certified California Municipal Treasurer Page 10