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Home My WebLink AboutInvestment Reports - Jan & Feb 2006X-C CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY�� DATE: APRIL 4, 2006 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for January and February 2006 which were presented and approved at the meeting of March 28, 2006. 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) G-.\Rnance\tdiamh Odega\Wpdocs\Investment Committee\Memos\rklasseninvreport012605.wpd �,�;�:.: ��;"�'':.f�:x..s=�'"":+z�,x��;`�''6'��`�; �, ..:�;','�'S;�s'-��:v �• •�"fib. �'''.::�e<e'�; x #' .,F dr.;& �' `" a S S4 µ � `„"''t �e ap �. x Aa. ,�3� �•' ' : , �"3 ia�#"� i�tEtl kt,{{"`e ib.xf .�+ u(`� S Y^' �?.$ �+: 5'E' .R••'�` rv' YY""c ..4g,'Y SS.13x :.tl .�"S,u, �"AM• Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The next two meetings of the Federal Open Market Committee (FOMC) will be on March 27-28, and on May 10. The market consensus is that the FOMC will raise the Federal Funds Rate by 50 basis points (b.p.) to 5.00% over the next two meetings. The market has assigned a 98% probability to a 25 b.p. hike in March, and an 80% probability to another 25 b.p. hike in May. The perception is that FOMC rate hikes have historically been driven by the interaction of the Unemployment Rate, and the Manufacturing Capacity Utilization Rate (CAPU). In other words, the FOMC has increased short-term interest rates when the Unemployment Rate has bottomed out, and the CAPU has approached 80%. U.S. economic growth for 2006 is currently being forecast at 3.00 -- 3.50%, with inflation at 2.40%. With the real estate market slowing, economic growth is now thought to be in the sustainable range. The inversion of the Treasury "yield curve" is expected to deepen, due to policy -driven increases on the short end of the curve. At the end of 2006, it is thought that 10-year U.S. Treasury Notes will yield about 5.25%, versus 4.75% currently. Thirty-year fixed-rate mortgages are expected to yield about 6.75% during the same time period. The real estate market will dramatically slow when 30-year fixed-rate mortgages hit 7.00%. A downturn in the housing market is the single greatest risk to the U.S. economy in 2007. PauLS. GVwiv, c.c.M 7- Treasurer PORTFOLIO STATISTICS Dollars in Thousands FEB-06 JAN-06 DEC-05 NOV-05 OCT-05 SEP-05 CITY Month -End Book Value*** $ 147,007 $ 147,649 $ 143,187 $ 146,910 $ 148,655 $ 149,081 Month -End Market Value*** $ 146,312 $ 146,991 $ 142,231 $ 145,957 $ 148,157 $ 148,892 Paper Gain (Loss) $ (695) $ (658) $ (956) $ (953) $ (498) $ (189) Prior Year Book Variance $ 4,320 $ 7,431 $ 18,463 $ 18,308 $ 18,105 $ 16,961 Interest Earnings $ 476 $ 454 $ 460 $ 440 $ 444 $ 431 Yield -To -Maturity 4.31% 4.06% 3.95% 3.81% 3.67% 3.56% Weighted Maturity (Days) 414 210 215 215 214 211 Effective Duration 0.76 0.27 0.29 0.31 0.33 0.35 RDA Month -End Book Value *** $ 153,652 $ 151,779 $ 125,395 $ 121,211 $ 123,243 $ 126,018 Month -End Market Value *** $ 153,233 $ 151,479 $ 124,957 $ 120,754 $ 122,833 $ 125,695 Paper Gain (Loss) $ (419) $ (300) $ (438) $ (457) $ (410) $ (323) Prior Year Book Variance $ (5,453) $ (8,781) $ (22,407) $ (27,519) $ (25,906) $ (33,342) Interest Earnings $ 494 $ 435 $ 385 $ 361 $ 350 $ 374 Yield -To -Maturity 4.26% 3.99% 3.82% 3.68% 3.54% 3.42% Weighted Maturity (Days) 415 128 153 158 156 153 Effective Duration 0.86 0.15 0.20 0.23 0.25 0.27 *** Omits SLGSs. City of Palm Desert -- Portfolio Characteristics 28 February 2006 Dollars in Thousands Aaeina Interval Market Value < 1 M $ 44,789 < 2M - < 3M - < 6M 2,969 < 1YR 1,972 < 2YR 20,154 < 3YR 12,849 < 4YR 12,988 < 5YR - > 5YR - Total: $ 95,721 Ratings * Market Value AAA $ 62,627 AA $ 2,114 A $ 6,018 Unrated "* 60,185 BB- 9,932 Total: $ 140,876 Sector Market Value MMFs $ 19,771 LAIF 27,400 RDA Loan 32,785 MTNs 21,964 Agencies 38,956 CP - Total: $ 140,876 Month Citv Yield LAIF Yield Mar05 2.79 2.54 Apr 2.94 2.72 May 3.06 2.86 Jun 3.29 2.97 Jul 3.37 3.08 Aug 3.43 3.18 Sep 3.56 3.32 Oct 3.67 3.46 Nov 3.81 3.64 Dec 3.95 3.81 Jan06 4.06 3.96 Feb 4.31 4.04 Standard and Poors " LAIF, and City Loan to RDA ...._........ _.-,_._._....._.........__....._.......... W. ...... ........................................................................................................................................................ General Fund Ageing 100 80 c 60 47 40 (L 21 20 0 0 3 2 f 71 13 F i 0 -- < 1 M < 2M < 3M < 6M < 1 YR < 2YR < 3YR be Credit Quality AAA 440/6 AA 2% 7% 4% Asset Allocation Variance Performance Unrated 43% RDA Loan 23% LAIF MTNs 19% 16% MMFs4i Agencies 14% 28% 0.25 0.21 4.4 0.21 0.32 3.9 0.29 0.25 D 3.4 0.24 } 2.9 0.21 0.17 2.4 0.14 Mar05 Apr May Jun Jul Aug Sep Oct Nov DecJan06 Feb 0.10 0.27 0 LAIF Yield ® City Yield Page 2 of 8 City of Palm Desert Portolio Holdings 28 February 2006 Market Ratings Par Value Issuer Coupons Maturity Cost YTM I Price I Value Moody'sl S&P Medium -Term Notes $ 3,000,000 BANK ONE 4.13 9/1/07 $ 3,020,584 3.64 98.56 $ 2,956,746 Aa3 A+ $ 3,000,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 3,049,274 5.75 98.21 $ 2,946,381 Ba2 BB- $ 2,500,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 2,541,062 5.75 98.21 $ 2,455,318 Ba2 BB- $ 4,612,000 FORD MOTOR CREDIT CORP 7.20 6/15/07 $ 4,727,942 5.10 98.21 $ 4,529,670 Ba2 BB- $ 2,000,000 GENERAL ELECTRIC 3.13 11/9/06 $ 1,989,400 3.92 98.66 $ 1,973,264 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,932,451 4.99 96.33 $ 1,926,564 Aaa AAA $ 3,000,000 GOLDMAN SACHS 7.20 3/1/07 $ 3,106,055 3.50 102.05 $ 3,061,377 Aa3 A+ $ 2,000,000 WAL-MART 6.88 8/10/09 $ . 2,121,599 4.93 105.72 $ 2,114,486 Aa2 AA $ 22,112,000 Subtotal $ 22,488,366 4.72 $ 21,963,706 Federal Agencies -- Discount $ 2,060,000 FED HOME LOAN BANK 0.00 3/20/06 $ 2,000,681 3.59 99.77 $ 2,055,262 Aaa AAA $ 2,060,000 Subtotal $ 2,000,681 3.59 $ 2,055,262 Federal Agencies -- Coupon $ 3,000,000 FED HOME LOAN BANK 3.70 8/15/07 $ 2,996,154 3.79 98.28 $ 2,948,438 Aaa AAA $ 1,500,000 FED HOME LOAN BANK 2.10 10/13/06 $ 1,484,867 3.79 98.31 $ 1,474,688 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 3.00 8/15/07 $ 2,974,348 3.63 97.34 $ 2,920,313 Aaa AAA $ 3,000,000 FED NATIONAL MTG ASSOC 2.75 8/11/06 $ 2,986,209 3.81 99.06 $ 2,971,875 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,952,294 5.59 98.00 $ 2,940,000 Aaa AAA $ 1,980,000 FED HOME LOAN BANK 4.75 12/12/08 $ 1,973,110 4.87 99.53 $ 1,970,719 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,982,794 5.40 99.31 $ 2,979,375 Aaa AAA $ 2,049,000 FED HOME LOAN BANK 4.00 12/15/09 $ 1,988,231 4.87 96.94 $ 1,986,249 Aaa AAA $ 2,035,000 FED HOME LOAN MTG CORP 2.50 12/4/06 $ 29015,055 3.84 98.22 $ 1,998,752 Aaa AAA $ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 1,994,293 4.87 97.88 $ 1,989,799 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.13 11/18/09 $ 1,949,214 4.88 97.26 $ 1,945,104 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,992,065 5.06 99.31 $ 1,986,154 Aaa AAA $ 2,786,000 FED NATIONAL MTG ASSOC 7.13 3/15/07 $ 2,885,254 3.55 102.16 $ 2,846,073 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,982,977 4.88 98.97 $ 1,979,375 Aaa AAA $ 33,383,000 Subtotal $ 33,156,865 4.46 $ 32,936,912 Federal Agencies -- Callable $ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,381 5.06 99.81 $ 1,996,174 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,9699869 4.88 98.38 $ 1,967,500 Aaa AAA $ 4,000,000 Subtotal $ 3,969,250 4.97 $ 3,963,674 Local Government Investment Pool $ 27,400,000 L.A.I.F. 0.00 3/1106 $ 27,400,000 4.04 100.00 $ 27,400,000 U U $ 27,400,000 Subtotal $ 27,400,000 4.04 $ 27,400,000 "U" = Unrated Page 3 of 8 Par Value I Issuer Local Government Investment Pool $ 10,499,265 C.A.M.P. $ 10,499,265 Subtotal Money Market Fund $ 9,271,561 WELLS FARGO GOUT $ 9,271,561 Subtotal City Loan to RDA $ 32,785,480 CITY OF PALM DESERT $ 32,785,480 Subtotal City of Palm Desert Portolio Holdings 28 February 2006 Market Ratings �CouponI Maturity Cost YTM I Price I Value IMoodysl SAP 0.00 3/1/06 $ 10,499,265 4.42 100.00 $ 10,499,265 U AAA $ 10,499,265 4.42 $ 10,499,265 0.00 3/1/06 $ 9,271,561 3.98 100.00 $ 9,271,561 Aaa AAA $ 9,271,561 3.98 $ 9,271,561 0.00 3/1/36 $ 32,785,480 4.04 100.00 $ 32,785,480 U U $ 32,785,480 4.04 $ 32,785,480 $ 141,511,306 $ 141,571,468 4.31 $ 140,875,860 Cash $ 3,313,937 CITY MAIN CHKG 0.00 3/1/06 $ $ 1,191,841 DESERT WILLOW CHKG 0.00 3/1/06 $ $ 626,263 MONTEREY 170 CHKG 0.00 3/1/06 $ $ 303,778 RECREATIONAL FAC CHKG 0.00 3/1/06 $ $ 5,435,821 Subtotal $ Total Investments and Cash 3,313,937 0.00 100.00 $ 3,313,937 N/A N/A 1,191,841 0.00 100.00 $ 1,191,841 NIA N/A 626,263 0.00 100.00 $ 626,263 N/A N/A 303,778 0.00 100.00 $ 303,778 N/A N/A 5,435,821 $ 5,435,821 $ 146,947,127 $ 147,007,289 $ 146,311,680 % of Portfolio Corporate Issuers (Market Value) FORD MOTOR CREDIT CORPORATION 6.79% GENERAL ELECTRIC CAPITAL CORPORATION 2.67% GOLDMAN SACHS 2.09% BANK ONE 1.45% "U" = Unrated Page 4 of 8 Dollars in Thousands Aaeina Interval < 1 M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR < 5YR > 5YR Total: ualit AAA AA A Unrated ** BB - Total: Sector LAW MMFs Agencies MTNs CP Treasuries Total: Month Mar05 Apr May Jun Jul Aug Sep Oct Nov Dec Jan06 Feb Palm Desert Redevelopment Agency -- Portfolio Characteristics 28 February 2006 Market Value $ 55,236 8,875 11,771 21,683 18,748 $ 116,313 Market Value $ 86,086 $ 1,950 $ 2,035 58,746 2,963 $ 151,780 Market Value $ 56,745 25,260 57,041 12,744 $ 151,780 RDA Yield LAW Yield 2.58 2.54 2.80 2.72 2.93 2.86 3.09 2.97 3.21 3.08 3.32 3.18 3.42 132 3.54 3.46 3.68 3.64 3.82 3.81 3.99 3.96 4.26 4.04 .......... Portfolio Ageing w/o SLGSs 100 90 80 0 70 47 c 500 40 a° 30 19 16 ,0 0 a 0 M, n( F] 0 < 1M < 2M < 3M < 6M < 1YR < 2YR < 3YR < 4YR Credit Quality ,. AA AAA 1% •. BE 2% Asset Allocation Variance Performance 0.04 nrated ** 39% 0.08 4A 0.07 0.13 3.9 an 0.13 0.14 3.4 0.10 >" 2.9 Mill! d 0.08 0.04 2.4 0.01 Mar05 Apr May Jun Jul Aug Sep Oct Nov Dec Jan06 Feb 0.03 0.22 ®LAIF Yield ®RDA Yield J * Standard and Poors ** LAW Page 5 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 28 February 2006 Market Ratings Par Value Issuer ICouponj Maturity I Cost I YTM' Price I Value ' Moody's S&P Medium -Term Notes $ 3,000,000 FORD MOTOR CREDIT CORP 6.50 1/25/07 $ 3,041,859 4.85 98.78 $ 2,963,430 Ba2 BB- $ 2,896,000 GENERAL ELECTRIC 6.38 3/15/06 $ 2,899,133 3.52 100.05 $ 2,897,529 Aaa AAA $ 2,896,000 GENERAL ELECTRIC 6.38 3/15/06 $ 2,899,133 3.52 100.05 $ 2,897,529 Aaa AAA $ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,040,415 5.00 101.77 $ 2,035,472 Aa3 A+ $ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,956,142 4.96 97.49 $ 1,949,886 Aal AA- $ 12,792,000 Subtotal $ 12,836,682 4.29 $ 12,743,846 Federal Agency -- Coupon $ 3,000,000 FED FARM CREDIT BANK 2.63 9/17/07 $ 2,964,163 3.43 96.69 $ 2,900,625 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,102,187 4.88 104.87 $ 2,097,450 Aaa AAA $ 2,0007000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,938,057 4.89 96.81 $ 1,936,250 Aaa AAA $ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,992,500 4.87 99.53 $ 1,990,625 Aaa AAA $ 3,000,000 FED HOME LOAN BANK 3.38 9114/07 $ 2,995,764 3.82 97.78 $ 2,933,438 Aaa AAA $ 3,005,000 FED HOME LOAN BANK 2.50 3/15/06 $ 3,003,945 3.42 99.91 $ 3,002,183 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,912,718 4.79 98.41 $ 3,906,728 Aaa AAA $ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,912,718 4.79 98.41 $ 3,906,728 Aaa AAA $ 4,500,000 FED HOME LOAN BANK 4.38 9/11/09 $ 4,428,441 5.59 98.00 $ 4,410,000 Aaa AAA $ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,908,256 4.88 95.09 $ 1,901,875 Aaa AAA $ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,977,059 4.84 99.41 $ 3,972,500 Aaa AAA $ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,942,123 4.89 96.59 $ 1,936,705 Aaa AAA $ 3,000,000 FED HOME LOAN MTG CORP 4.88 3/15/07 $ 3,044,508 3.38 99.91 $ 2,997,188 Aaa AAA $ 2,974,000 FED HOME LOAN MTG CORP 3.63 9/15/06 $ 2,974,474 3.60 99.34 $ 2,954,483 Aaa AAA $ 2,974,000 FED HOME LOAN MTG CORP 3.63 9/15/06 $ 2,974,561 3.60 99.34 $ 2,954,483 Aaa AAA $ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 1,988,021 4.87 96.94 $ 1,986,249 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 5.00 7/23/08 $ 1,996,956 5.07 99.77 $ 1,995,362 Aaa AAA $ 2,973,000 FED NATIONAL MTG ASSOC 3.63 3/15/07 $ 2,975,162 3.95 98.66 $ 2,933,050 Aaa AAA $ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,385,925 4.89 105.41 $ 4,379,630 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,949,979 4.87 97.28 $ 1,945,625 Aaa AAA $ 57,575,000 Subtotal $ 57,367,516 4.46 $ 57,041,176 Local Government Investment Pools $ 35,600,000 L,A.I.F. 0.00 3/1/06 $ 35,600,000 4.04 100.00 $ 35,600,000 U U $ 5,902,251 L.A.I.F. (HOUSING) 0.00 311/06 $ 5,902,251 4.04 100.00 $ 5,902,251 U U $ 15,083,034 L.A.I.F. BOND PROCEEDS 0.00 3/1/06 $ 15,083,034 4.04 100.00 $ 15,083,034 U U $ 160,090 L.A.I.F. BOND PROCEEDS 0.00 3/1/06 $ 160,090 4.04 100.00 $ 160,090 U U $ 56,745,375 Subtotal $ 56,745,375 4.04 $ 56,745,375 Local Government Investment Pool $ 9,900,359 C.A.M.P. 0.00 3/1/06 $ 9,900,359 4.42 100.00 $ 9,900,359 U AAA $ 9,900,359 Subtotal $ 9,900,359 4.42 $ 9,900,359 "U" = Unrated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 28 February 2006 f Par Value I Issuer Money Market Fund $ 15,349,536 WELLS FARGO GOUT $ 15,349,536 Subtotal Total Investments $ 152,362,269 Cash $ 1,124,480 HOUSING AUTH CHKG $ 328,400 HOUSING AUTH TRUST $ 1,452,880 Subtotal Total Investments and Cash $ 153,815,150 Corporate Issuers Market Ratings ICouponl Maturity I Cost I YTM I Price I Value Moody'sI S&P 0.00 3/1/06 $ 15,349,536 4.43 100.00 $ 15,349,536 Aaa AAA $ 15,349,536 4.43 $ 15,349,536 $ 152,199,467 4.26 $ 151,780,292 0.00 3/1 /06 $ 1,124,480 0.00 100.00 $ 1,124,480 N/A 0.00 3/1106 $ 328,400 0.00 100.00 $ 328,400 N/A $ 1,452,880 $ 1,452,880 GENERAL ELECTRIC CAPITAL CORPORATION FORD MOTOR CREDIT CORPORATION FIRST UNION NAT BANK WELLS FARGO BANK $ 153,652,348 % of Portfolio (Market Value) 3.78% 1.93% 1.33% 1.27% $ 153,233,172 N/A N/A "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 28 February 2006, 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 28 March 2006, ,PWdIS. C. C.M. T: City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS f 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) :`t1..S<,Treastares:;:":.::" ::5"Years.:'.:.:'-No;timit".:, . :; . ""; ::.., . ",S.Years. j "..No Limit,..j` '. , : - "„` .;O.Q% ..j -::,ti:oa/o 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) : ,, " 1~edera4,Ageneies.:...,;5 Years: No: Limit; ; 5`Years;;.'-",. I;. 6°la 53601(f):' Bankers's"Acceptahces ``.1'$0> Days '; " , 401/0 " "" 180 pays ' ; ,40%- 53601(g),- `,;,Comrxieic►a#,Paper "; 270,rays °.. ,.,, "; . 25"/0 A-;1,+br"P=12ZO,Da s" y o" 25Ja-:: o 601( 53h)` N e�otiable CDC -: S,Years ._ 30% SY ears" 30?!0 53601. a ( ReP;4s 1, Year" : .No.Liinit 30.Days .l' "'"20°10 AAA Aaa 53601(1) Reverse Repos 92 Days 20% Not Authorized 53601.(jj ":-Medium-7etm N.ates° .. ;: " a o $3.601' k "` :" (") : twat°F.unds : ": ;":.: Mu '- 90.Days., : " ;20" /o .. ;AAA &",Aaa," _ .-90 Days.: 20 /o (2) -, AAA Aaal�"6.6% "'; "10.10,_ 53601(I) Trust Indenture Debt I j Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601`,(k) , " .. " Loaal'.Goveri?tinent ., AAA & Aaa:: AAA &. Aaa , liivestmeri 'Pools' 90 Days 20%:ar'Advisor 90 pays 200fo,(2), :-or;Advisor, " 7.46X6.5% 53601(n) Mortgage -Backed 5 Years 20% A (Issuer) & Not Authorized Securities AA (Security j .. L-AIF".No Limit 19.4°k 37.3°Jo.. (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. ' 76.8% 100.0% (2) Maximum limit for mutual funds and local government investment pools, excluding bond proceeds x Certified California Municipal Treasurer Page 8 of 8