Loading...
HomeMy WebLinkAboutCity and RDA - Investment Report - July 2005City of Palm Desert City and Redevelopment Agency Portfolios. COMPLIANCE ANALYSIS AND INVESTMENT REPORT.. © July 2005 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 on September 20th to review short-term interest rates. It is expected that the FOMC will raise the Federal Funds Rate by 25 basis points to 3.50 percent -- the tenth consecutive rate increase. The Committee indicated that. with appropriate monetary policy a--tion, the upside and downside risks to the attainment of both sustainable growth and price stability should be kept roughly equal. In addition, the Committee noted that the expansion remained firm; that labor market conditions continued to improve gradually; and that, although pressures on inflation had remain elevated, longer term inflation expectations remained well -contained. Payroll employment grew in June and in July at a pace that was roughly on par with that over the preceding six months. The unemployment rate dipped to 5.0 percent in June, and held steady at that level in July. The next six months will be a period of lower cash receipts for the City and the Redevelopment Agency, along with several large Debt Service and Redevelopment pass -through payments. Dollars in Thousands CITY Month -End Book Value""" Month -End Market Value — Paper Gain (Loss) Prior Year Book Variance Interest Earnings Yield -To -Maturity Weighted Maturity (Days) Effective Duration RDA Month -End Book Value Month -End Market Value Paper Gain (Loss) Prior Year Book Variance Interest Earnings Yield -To -Maturity Weighted Maturity (Days) Effective Duration Pa & tbS. CjGI�,<, 7;, 7" C. 6- T. Treasurer PORTFOLIO STATISTICS jUL" -35 JUNE-05 MAY-05 APR-05 MAR-05 FEB-05 51.176 $ 150.073 $ 172,413 $ 145,753 $ 146.856 $ 142,687 150.936 $ 149,868 $ 172,196 $ 145,498 $ 146,787 $ 142,852 $ (240) $ (205) $ (217) $ (255) $ (69) $ 165 S 9.725 $ 7,656 $ 46,510 $ 15,413 $ 20,165 $ 17,749 5 437 $ 377 $ 359 $ 321 $ 325 $ 283 3.34% 3.29% 3.06% 2.94% 2.79% 2.66% 216 220 134 166 170 172 0.40 0.43 0.21 0.25 0.28 0.30 S 143,968 S 146,433 $ 124,373 $ 125,433 $ 158,324 $ 159,105 S 143,916 $ 146,296 S 124,233 $ 125,251 $ 158,129 $ 159,134 S (52) $ (137) S (140) $ (182) $ (195) $ 29 S (31,342) S (38,476) S (52,270) $ (27,263) S (5,191) $ (5.466) S 386 S 366 S 302 S 286 S 375 $ 285 3.15'--, 3.09% 2.93% 2.80% 2.58%0 2.37% 142 140 101 101 80 136 0.28 0.30 0.21 0.22 0.18 0.20 '"" Omits SLGSs. City of Palm Desert -- Portfolio Characteristics 31 July 2005 Dollars in Thousands Aqeinq Interval Market Value < 1 M S 57.250 < 2M .,�; 78 < 3M 2,99S < 6M 5S2 < 1 YR 2,01 C) < 2YR 6.563 < 3YR 8,888 < 4YR - < 5YR > 5YR - Total: $ 97,277 General Fund Ageing 100 80 59 0 60 - 0 E 40 0 a 17 20 5 9 3 5 2 0 r-t r, 7 n I. < 1 M < 2M < 3M < 6M < 1 YR < 2YR < 3YR Ratings " Market Value Credit Quality AAA AAA S . n' 9 39% Unrated " 72.785 BB+ AA 8.1 ; 7 7°o Unrated " A-1 gc,3 A-1 49% BB+ 13.28 1°0 AA Total: S 147,198 400 Sector Market Value Asset Allocation) 1 RDA Loan MMFs 2 1 .253 LAIF 22% LAIF 0.000 P80:0 RDA Loan 32 785 MTNs MTNs 1200 Agencies 33,797 MMFs CP 9931 14% CP Agencies Total: $ 147,198 1 .0 23.0 Month Citv Yield LAIF Yield Variance Performance) Aug04 1.74 1.67 0.06 1 Sep 1.84 1.77 0.07 3.5 ----- ------ --------- Oct 1.96 1.89 0.07 Nov 2.08 2.00 0.08 3.0 Dec 2.26 2.20 0.06 Jan05 2.54 2.26 0.28 2.5 -6 - Feb 2.66 2.37 0.29 r 2.0 Mar 2.79 2.54 0.25 Apr 2.94 2.72 0.21 1.5 May 3.06 2.86 0.21 Aug04Sep Oct Nov DecJan05 Feb Mar Apr May Jun Jul Jun 3.29 2.97 0.32 1 6 334. 3.08 0.26 ❑ 0 .- Standard and Poors LAIF, and City Loan to RDA Page 2 of 8 City of PaVm Desert Portfolio Holdings 31 July 2005 Market Ratings Par Value Issuer lCouponj Maturity I Cost I YTM I Price I Value iMoody'si S&P Medium -Term Notes $ 3,000,000 BANK ONE 4.13 1-Sep-07 S 3,028,588 3.64 99.63 $ 2.988,888 Aa3 A+ $ 3,000,000 FORD MOTOR CREDIT CORP 7.20 15-Jun-07 $ 3,071,575 5.75 101.70 $ 3,051,114 Baal BB+ $ 2,500,000 FORD MOTOR CREDIT CORP 7.20 15-Jun-07 $ 2,559,646 5.75 101.70 $ 2,542,595 Baa2 BB+ $ 4,612,000 FORD MOTOR CREDIT CORP 7.20 15-Jun-07 $ 4,780,416 5.10 101.70 $ 4,690,579 Baa2 BB+ $ 2,000,000 GENERAL ELECTRIC 3.13 9-Nov-06 $ 1,980,424 3.92 98.44 $ 1.968,890 Aaa AAA $ 3,000,000 GOLDMAN SACHS 7.20 1-Mar-07 $ 3,167,920 3.50 104.26 $ 3,127,938 Aa3 A+ $ 18,112,000 Subtotal S 18,588,569 4.66 S 18,370,004 Commercial Paper -- Discount $ 1,000,000 GENERAL ELECTRIC 3.29 7-Oct-05 $ 987,206 3.38 99.33 $ 993,313 P-1 A-1+ $ 1,000,000 Subtotal $ 987,206 3.38 $ 993,313 Federal Agencies -- Discount S 2.060,000 FED HOME LOAN BANK 0.00 20-Mar-06 $ 2,000,681 3.59 97.57 $ 2,009,942 Aaa AAA S 2,020,000 FED HOME LOAN BANK 0.00 14-Oct-05 $ 1,999,019 3.36 99.30 $ 2,005,860 Aaa AAA S 2.000,000 FED HOME LOAN MTG CORP 0.00 15-Sep-05 $ 1,978,786 3.21 99.58 $ 1,991,600 Aaa AAA S 2,000,000 FED HOME LOAN MTG CORP 0.00 13-Dec-05 $ 1,967,042 3.49 98.66 $ 1,973,200 Aaa AAA S 3,000,000 FED NATIONAL MTG ASSOC 0.00 19-Sep-05 $ 2,967,135 3.21 99.55 $ 2,986,500 Aaa AAA S 3,000,000 FED NATIONAL MTG ASSOC 0.00 10-Aug-05 $ 2,977,045 3.16 99.92 $ 2,997,600 Aaa AAA $ 1.023,000 FED NATIONAL MTG ASSOC 0.00 18-Jan-06 $ 999,798 3.54 98.26 S 1,005,200 Aaa AAA $ 1.630,000 FED NATIONAL MTG ASSOC 0.00 15-Nov-05 $ 1,607,855 3.44 98.97 $ 1,613,211 Aaa AAA $ 16,733,000 Subtotal $ 16,497,361 3.34 $ 16,583,113 Federal Agencies - Coupon $ 3,000,000 FED HOME LOAN BANK 3.70 15-Aug-07 $ 2,994,613 3.79 98.97 S 2,969,063 Aaa AAA $ 1,500,000 FED HOME LOAN BANK 2.10 13-Oct-06 S 1,470,552 3.79 97.69 $ 1,465,313 Aaa AAA $ 2,035.000 FED HOME LOAN MTG CORP 2,50 4-Dec-06 S 1,999,713 3.84 97.84 $ 1,991,120 Aaa AAA $ 2,009.000 FED HOME LOAN MTG CORP 1.88 15-Feb-06 $ 1,989,951 3.67 98.88 $ 1,986,399 Aaa AAA $ 2,786,000 FED NATIONAL MTG ASSOC 7.13 15-Mar-07 $ 2,940,985 3.55 104.59 $ 2,913,982 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 3.00 15-Aug-07 $ 2,964,068 3.63 97.66 $ 2,929,688 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 2.75 11-Aug-06 S 2.968,108 3.81 98.63 $ 2,958,750 Aaa AAA IS 17,330,000 Subtotal $ 17,327,990 3.72 $ 17,214,313 Local Government Investment Pool $ 40,000,000 L.A.I.F. 0.00 1-Aug-05 $ 40,000,000 3.08 100.00 $ 40,000,000 U U $ 40,000,000 Subtotal $ 40,000,000 3.08 $ 40,000,000 Local Government Investment Pool S 12,121,336 C.A.M.P. 0.00 1-Aug-05 $ 12,121,336 2.78 100.00 $ 12,121,336 U AAA $ 12,121,336 Subtotal $ 12,121,336 2.78 $ 12,121,336 "U" = Unrated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 July 2005 Par Value I Issuer l Couponj Maturity Money Market Fund $ 9,131,420 AIM 0.00 1-Aug-05 $ $ 9,131,420 Subtotal S City Loan to RDA Market Ratings Cost YTM I Price I Value Moody'sl S&P 9,131,420 2.73 100.00 S 9,131,420 Aaa AAA 9,131,420 2.73 100.00 $ 9,131,420 $ 32,785,480 CITY OF PALM DESERT 0.00 1-Aug-05 $ 32,785,480 3,08 100.00 $ 32,785,480 $ 32,785,480 Subtotal S 32,785,480 3.08 $ 32,785,480 Total Investments $ 147,213,236 $ 147,439,362 3.34 Cash $ 2,397,943 CITY MAIN CHKG 0.00 1-Aug-05 $ $ 1,015,708 DESERT WILLOW CHKG 0.00 1-Aug-05 $ $ 323,073 RECREATIONAL FAC CHKG 0.00 1-Aug-05 S S 3,736,725 Subtotal $ Total Cash and Investments $ 147,198,980 U U I 2,397,943 0.00 100.00 S 2.397,943 N/A N/A 1,015,708 0.00 100.00 S 1,015,708 N/A N/A 323,073 0.00 100.00 S 323,073 N/A N/A 3,736,725 S 3,736,725 $ 150,949,961 $ 151,176,086 Corporate Issuers FORD MOTOR CREDIT CORP GENERAL ELECTRIC GOLDMAN SACHS BANK ONE % of Portfolio (Market Value) 6.80°a 1.96% 2.07% 1.98% S 150,935,704 "U" = Unrated Page 4 of 8 Dollars in Thousands Aqeinq Interval < 1 M <2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR < 5YR > 5YR Total: Quality AAA Unrated " A-1 BB+ Total: Sector LAIF MMFs Agencies CP MTNs Treasuries Total: Palm Desert Redevelopment Agency -- Portfolio Characteristics 31 July 2005 Market Value S 61.321 6. G'i 2 12z,0 14 e29 ^.635 $ 100,587 Market Value $ 65.635 60 790 9.024 6.52 1 $ 142,040 Market Value S 60.790 39 C3 1 2073, 9.021! i 2 464 S 142,040 Month RDA Yield LAIF Yield Variance Aug04 1.51 1.67 -0.16 Sep 1.61 1.77 -0.17 Oct 1.73 1.89 -0.16 Nov 1.84 2.00 -0.17 Dec 2.00 2.20 -0.20 Jan05 2.23 2.26 -0.03 Feb 2.37 2.37 0.00 Mar 2.58 2.54 0.04 Apr 2.80 2.72 0.08 May 2.93 2.86 0.07 Jun 3.09 2.97 0.13 3.15 3.0E 0.07 ' Standard and Poors LAIF Portfolio Ageing w/o SLGSs� i 100 ----------- --- - ----- - --- - - - - -- - --- - 90 80 0 70 61 c 60 - I 0 50 c 40 a 30 15 I 20 6 12 6 i 0 0 0 n 0 n 0 r1 1-1 < 1M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR J (Credit Oualityl AAA 46% D Unrated " 43°b BB+ 5c�0 A-1 6°`0 Asset Allocation LAIF 43% MMFs 27°% . o MTNs CP Agencies 9° 0 15°-0 � 60,. 0 PerformanceM 3.0 _ r °-- 2.4 . _. 2 r r 1.8 1.2 - --�V�--- Aug04Sep Oct Nov DecJan05 Feb Mar Apr May Jun Jul ❑LAIF Yield ORDA Yield Page 5 of B Palm Desert Redevelopment Agency Portfolio Holdings 31 July 2005 Market Ratings Par Value Issuer lCouporq Maturity I Cost I YTM I Price I Value IMoody'sl S&P Medium -Term Notes S 3.000,000 FORD MOTOR CREDIT CORP 6.50 25-Jan-07 $ 3,068,990 4.85 101.05 $ 3,031,386 Baa2 BB+ S 3,525,000 FORD MOTOR CREDIT CORP 6.88 1-Feb-06 $ 3,575,155 3.94 100.99 $ 3,559,975 Baa2 BB+ $ 2,896,000 GENERAL ELECTRIC 6.38 15-Mar-06 $ 2,946:129 3.52 101.39 S 2,936,150 Aaa AAA $ 2,896,000 GENERAL ELECTRIC 6.38 15-Mar-06 $ 2,946,129 3.52 101.39 $ 2,936,150 Aaa AAA $ 12,317,000 Subtotal $ 12,536,404 3.97 $ 12,463,661 Commercial Paper -- Discount $ 3,000,000 GENERAL ELECTRIC 0.00 15-Aug-05 S 2,952,448 2.87 99.86 S 2,995,713 P-1 A-1+ $ 3,028,000 GENERAL ELECTRIC 0.00 15-Sep-05 $ 2,999,470 3.28 99.55 S 3,014,303 P-1 A-1+ $ 3,028,000 GENERAL ELECTRIC 0.00 15-Sep-05 $ 2,999,470 3.28 99.55 $ 3,014,303 P-1 A-1+ $ 9,056,000 Subtotal $ 8,951,387 3.14 $ 9,024,319 Federal Agency - Coupon $ 3,000,000 FED FARM CREDIT BANK 2.63 17-Sep-07 $ 2,950,627 3.43 96.88 $ 2,906,250 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 3.38 14-Sep-07 $ 2,994,156 3.82 98.28 $ 2,948,438 Aaa AAA S 3,005,000 FED HOME LOAN BANK 2.50 15-Mar-06 $ 2,988,113 3.42 99.09 $ 2,977,767 Aaa AAA $ 3,000,000 FED HOME LOAN MTG 4.88 15-Mar-07 $ 3,069,499 3.38 101.16 S 3,034,688 Aaa AAA $ 2,974,000 FED HOME LOAN MTG 3.63 15-Sep-06 $ 2,974,986 3.60 99.44 $ 2,957,271 Aaa AAA $ 2,974,000 FED HOME LOAN MTG 3.63 15-Sep-06 $ 2,975,168 3.60 99.44 $ 2,957,271 Aaa AAA $ 2,973,000 FED NATIONAL MTG ASSOC 3.63 15-Mar-07 $ 2,976,375 3.95 99.19 $ 2,948,844 Aaa AAA $ 20,926,000 Subtotal $ 20,928,923 3.60 $ 20,730,529 Local Government Investment Pool $ 40,000,000 L.A.I.F. 0.00 1-Aug-05 $ 40.000,000 3.08 100.00 $ 40,000,000 U U $ 5,802:366 L.A.I.F. (HOUSING) 0.00 1-Aug-05 $ 5,802,366 3.08 100.00 $ 5,802,366 U U S 14,827,783 L.A.I.F. BOND PROCEEDS 0.00 1-Aug-05 $ 14,827,783 3.08 100.00 $ 14,827,783 U U S 160,090 L.A.I.F. BOND PROCEEDS 0.00 1-Aug-05 $ 160.090 3.08 100.00 $ 160,090 U U IS 60,790,239 Subtotal $ 60,790,239 3.08 $ 60,790,239 Local Government Investment Pool $ 14,220,823 C.A.M.P. 0.00 1-Aug-05 $ 14,220,823 3.02 100.00 $ 14,220,823 U AAA $ 14,220,823 Subtotal $ 14,220,823 3.02 S 14,220,823 Local Government Investment Pool $ 24,810,420 AIM 0.00 1-Aug-05 $ 24,810,420 2.94 100.00 $ 24,810,420 Aaa AAA $ 24,810,420 Subtotal $ 24,810,420 2.94 $ 24,810,420 Total Investments $ 142,120,483 $ 142,238,197 3.21 $ 142,039,993 "U" = Unrated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 July 2005 Par Value Issuer Cash $ 1,409,072 HOUSING AUTH CHKG $ 320,932 HOUSING AUTH TRUST $ 1,730,004 Subtotal Total Cash and Investments S 143,850,487 Market Ratings jCoupor4 Maturity I Cost I YTM I Price I Value IMoody'sl S&P 0.00 1-Aug-05 S 1,409,072 0.00 100.00 S 1,409,072 N/A N/A 0.00 1-Aug-05 $ 320,932 0.00 100.00 $ 320,932 N/A N/A $ 1,730,004 $ 1,730,004 Corporate Issuers GENERAL ELECTRIC CAPITAL CORPORATION FORD MOTOR CREDIT CORPORATION $ 143,968,202 $ 143,769,997 % of Portfolio (Market Value) 10.35°0 4.58% "U" = Unrated Page 7 of 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 Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 July 2005, the City and the RDA investment portfolios were in compliance with all applicable federal. state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority). Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant. unexpected cash requirements Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectfully submitted on 22 August 2005, City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS I California Government Code I 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 1 1 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 Years No Limit 5 Years 30% 6c% 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 53601(h) Negotiable CDs 5 Years 30% 5 Years 30% AA- or Aaa 53601(i) Repos 1 Year No Limit 30 Days 20% AAA & Aaa 53601(i) Reverse Repos 92 Days 20% Not Authorized 53601 Q) Medium -Term Notes 5 Years 30% o A 5 Years o 30% A 53601(k) Mutual Funds 90 Days 20% AAA & Aaa 90 Days 20% (2) 1 AAA & Aaa 53601(I) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(k) Local Government AAA & Aaa I I AAA & Aaa Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor l 53601(n) Mortgage -Backed 5 Years 20% A (Issuer) & Not Authorized Securities AA (Security) LAW No Limit No Limit (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds 22.90c i4.7"o 0 7` , 6.31. i 2.6% 8.80 �'-.2' �7.7°0 8.5% 1 . 3.0`o 27.1 42.5` 77.8°a , 00.0 Certified California Municipal Treasurer Page 8 of 8