HomeMy WebLinkAbout61965 (5)The "fscal cliff" was temporarily averted as weeks of high stakes negotiations
resulted in a very narrow deal. The Bush Tax Cuts were left intact for those
earning less than $450,000. Incomes taxes increased for those above that level.
The payroll tax holiday on Social Security taxes was.allowed to expire. New taxes
that supported the Affordable Care Act took effect as planned. There was a
"permanenY' fx to the Alternative Minimum Tax. The issue of Mandatory
Sequestration (large spending cuts that hit discretionary expenditures and defense
spending the hardest) was deferred for two months. The need to raise the
debt ceiling so that the U.S. Government can pay its bills was completely ignored.
With taxes rising less than in previous forecasts, estimates for consumer spending
and business investment have increased slightly. Consumer spending is projected
to be L6 percent for all of 2013. Modest gains in private sector activity reFlect the
uncertainty surrounding the fiscal cliff, which caused economic activity to slow at
the end of 2012, and at the beginning of 2013. The private sector is expected to
pick up momentum over the course of the year, although this momentum will be
offset by the impact of cuts in federal government spending.
Residential cons[ruction remained the economy's bright spot Singie-family starts
are projected to rise 27 percent this year, and mufti-family starts are projected to
rise 30 percent. This rebound comes from severely depressed levels, however,
and will have only a modest effect on overall U.S. economic activity.
✓'a[��.5. �alt� L�L�✓i1✓r. �K
City Treasurer
' Certified Cali/ornia Municipal Treasurer
Markets Team
Ciry 7reasurer
Paul S. Gibson, C.C.M.T.
Deputy City Treasurer
Thomas W. Jeffrey, J.D_ M.B.A.
If1VBStfT1@fli
The Veasurer shall invest all
public monies in a manner
that ensures safety of
principal; sufficient liquidity
to finance the City's
expenditures; and the
highest yield possible after
the previous lwo objectives
have been mel.
STATISTICS
Month-End Book Value $
Month-End Market Value $
Paper Gain (Loss) $
Prior Year Book Variance $
Interest Eamings $
Yield-To-Maturity
Weighted Maturity (Days)
Effective Duration
192,086 $
192.720 $
34 $
(14,228) $
54 $
0.34 %
31
0.03
194,781 $ 195,056 $
194,809 $ 195,071 $
28 $ 15 $
1,165 $ (828) $
58 $ 64 $
0$7% 0$9%
29 30
0.03 0.04
3ta as of December 31, 2012
198,990 $
199,032 $
42 $
(6,063) $
64 $
0.39%
29
0.04
206,754 $
206,794 $
40 $
99 $
71 $
0.40 %
28
0.04
205,805
205,845
40
72
0.42°/
40
0.05
ECONOMIC COMMENTARY