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Home My WebLink AboutSR - Invstmnt Rprts - April 2010�C CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: NIAMH ORTEGA, RECORDING SECRETARY "_ DATE: MAY 25, 2010 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS Please find attached the Compliance Analysis and Investment Reports for were presented and approved at the recent meetings of the Audit, Investment and Finance Committee for the month of May 2010. Please include the report on the upcoming agenda for review and acceptance by City Council. Also included are the minutes of the February, March and April meetings for acceptance by the City Council. Please feel free to contact me at Ext. 382 if you have any questions. Thank you. nmo Attachment (as noted) k ' V fJ f � , BY RDA ON �'-/G -,?C;/ U VERIFIED 13Y��m / L Original on fife with City Clcrk't Office CITY COUNCIL ACTION APPROVED DENIED RECEIVED OTHER MEETING DATE /c AYES: &5 o/7. Xe 11u, F_iiz, er- NOES: N 4 e ABSENT: LLY ABSTAIN:.A!00C VERIFIED BY: Original on File with City Clerk s Office G:\FINANCE\NIAMH ORTEGA\INVESTMENT COMM ITTEE\MEMOS\RKLASS ENINVREPORT.WPD City of Palm Desert �,... City and Redevelopment Agency Portfolios COMPLIANCE ANALYSIS AND INVESTMENT REPORT April 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. Wells 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 yields fell due to a global "flight -to -safety." The U.S. stock market went into a steep decline. 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. Pis tidwi , C. C.Al 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 Market Value*** $ 203,969 $ 198,665 $ 201,136 $ 219,068 $ 203,250 $ 202,521 Paper Gain (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 Dollars in Thousands aeina Interval Market Value < 1 M $ 57,536 (General Fund Ageing < 2M - < 3M 2,085 100 6 i < 6M 18,293 80 < 1 YR 16,281 0 < 2YR 20,369 2 60 40 I i < 3YR 30,941 40 - < 4YR - a 20 13 11 14 21 < 5YR - 0 1 F1, n 0 0 01 > 5YR _ 0 Total: $ 145,505 1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR RatingsMarket Value (Credit Quality AAA AAA $ 99,968 50% AA 21,485 A 7,025 Unrated ** AA Unrated ** 68,603 35% A 11 % Total: $ 197,081 4% Sector Market Value Asset Allocation MTNs MMF $ 29,828 Aencies 14% 14% Agencies 65,420 9 0 `,y, * CAMP MTNs 28,510 34/0 ,,, #,„2% CAMP 4,720 " RDA Loan RDA Loan 22,655 11% MMF Energy Loan Energy Loan 4,349 15% LAIF 2% LAIF 41,599 22% Total: $ 197,081 Month Citv Yield LAIF Yield Variance Performance May09 2.04 1.53 0.51 Jun 2.03 1.38 0.65 2.4 - ----- Jul 1.90 1.04 0.86 Aug 1.79 0.93 0.87 1.6 - Sep 1.74 0.76 0.98 a Oct 1.69 0.65 1.05 2 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 May0gun Jul AugSep Oct NovDedan1 (Feb Mar Apr Feb 1.41 0.58 0.83 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 ICouponj Maturity I Cost YTM I Price I Value Moody's I 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 10/21/10 $ 2,028,613 5.63 101.94 $ 2,074,542 Aa2 AA+ $ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 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 Aal AA $ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,015,167 5.02 101.98 $ 2,039,588 Al AA $ 4,000,000 WELLS FARGO BANK 6.38 8/1/11 $ 4,054,973 5.13 105.23 $ 4,209,272 Al AA $ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,997,706 5.09 101.09 $ 2,021,826 Al 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 10/7/10 $ 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 ICouponi Maturity Cost YTM I Price I Value Moody'sI S&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 Subtotal $ 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 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 $ 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 Subtotal $ 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 Par Value I Issuer ICouponj Maturity Cost % 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% FED HOME LOAN MTG CORP 5.49% FED NATIONAL MTG ASSOC 5.41% Market Ratings YTM I Price I Value Moody's I S&P "U" = Unrated Page 5 Palm Desert Redevelopment Agency -- Portfolio Characteristics April 30, 2010 Dollars in Thousands Aaeina Interval Market Value °1 < 1 M $ 80,460 Portfolio Ageing w/o SLGSs� < 2M - 1 < 3M 3,022 100_..........__..----_- < 6M 10,919 gp _ < 1YR 16,161 i o 60 59 f < 2YR 18,280 i •2 < 3YR 3,822 40 - < 4YR - a 20 $ 12 13 < 5YR - 0 2 n I I 3 0 0 2 0 > 5YR 3,151 < < < < < < < < < > Total: $ 135,815 1M 2M 3M 6M 1YR 2YR 3YR 4YR 5YR 5YR ualit Market Value Credit Quality AA AAA $ 129,622 2% A AA 6,097 AAA 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 13 ° it 12 /°/MTNs 16,168 LAIF CAMP 32,811 MMF17% LAIF 49,787 20% EIP EIP 3,151 1% LAIF/Bond Proceeds 89,426 LAIF/Bond Total: $ 285,002 Proceeds ' 31% Month RDA Yield LAIF Yield Variance Performance May09 1.06 1.53 -0.47 Jun 1.30 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 e Oct 0.96 0.65 0.32 d Nov 1.21 0.61 0.59 0.7 Dec 1.21 0.57 0.64 Jan10 0.72 0.56 0.16 0.0 - T T Feb 0.69 0.58 0.12 May0gun Jul Aug Sep Oct Nov DedanlCFeb Mar Apr Mar 0.70 0.55 0.15 ®LAIF Yield 0RDA Yield Apr 0.74 0.59 0.15 i Standard and Poors LAIF Page 6 Palm Desert Redevelopment Agency Portfolio Holdings April 30, 2010 Market Ratings Par Value Issuer I Coupon I Maturity) Cost I YTM I Price I Value Moody'sI 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 Al 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 1 $ 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 1 $ 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 5/1/10 $ 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 5/1/10 $ 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 I Value ' Moody'sl 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 CITY OF 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 Portfolio 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 I Par Value Palm Desert Redevelopment Agency Portfolio Holdings April 30, 2010 Issuer Agency Issuers Coupon I Maturity) FED FARM CREDIT BANK FED HOME LOAN BANK FED HOME LOAN MTG CORP FED NATIONAL MTG ASSOC Cost % of Portfolio (Market Value) 1.75% 4.59% 2.06% 4.20% Market Ratings YTM I Price I Value Moody'sI S&P "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 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 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, ra"471s ii6No-n, C. C. R T: 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 2.2% 1.1% 53632(c) Savings 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 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% 6% 33.3% 12.5% 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% Not Authorized 53601(j) Medium -Term Notes 5 Years 0 30% A 5 Years 30 A 0/o IAAA&Aaal 14.. 2 0/0 57 0/o 53601(k) Mutual Funds 90 Days 20% AAA & Aaa 90 Days 20% (2) 15.2% 20.3% 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 & AaaI I Investment Pools 90 Days 20% or Advisor 90 Days 20% (2) or Advisor 1 2.4% 11.5% 53601(n) Mortgage -Backed 5 Years 20% A (Issuer) & Not Authorized 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 government investment pools, excluding bond proceeds. Certified California Municipal Treasurer Page 10