HomeMy WebLinkAbout64131 (2)2013
City of Palm Desert
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ECONOMIC COMMENTARY
According to the minutes of the Federal Reserve's March economic policy review,
Fed o�cials are actively debating whether to wind down their $85 billion-a-
month bond buying program after midyear. They have become increasingly
concerned about the potential for instability to the financial system, a sudden
rise in interest rates, and inflation. Repeated rounds of Quantitative Easing
("QE") have produced short-lived bounces that have pushed a weak U.S.
economy from the verge of recession. QEs have also created a stock market
"bubble", however, as elevated profit margins have created the illusion that
stocks are reasonably priced.
Obamacare may have a significant impact on consumer spending, which drives
U.S. economic growth. Rising insurance premiums prompted by expanded
health benefits; spiraling claim costs; the overseas outsourcing of R&D jobs
to avoid the Medical Device Tax; the conversion of full-time jobs to part-time
jobs to avoid the Obamacare mandate; reduced work hours for part-time
jobs; higher payroll taxes; a reduction in flexible spending account caps; an
increase in the threshold for the medical itemized deduction, will reduce
the amount of disposable income that consumers have to spend.
A federal bankruptcy judge has ruled that the City of Stockton, California can
file for bankruptcy under Chapter 9. Seven other Califomia cities may also
be headed in that direction.
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City Treasurer
' Certified California Municipal Treasurer
PORTFOLIO STATISTICS
Thousands of Dollars
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
$
$
$
$
$
197,943 $
197,962 $
19 $
(12,660) $
56 $
0.34%
29
0.02
201,340 $
201,384 $
44 $
(11,127) $
52 $
0.34%
28
0.02
198,185 $
198,223 $
38 $
(32,215) $
55 $
0.35%
29
0.03
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
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ital Markets Team
City Treasurer
Paul S. Gibson, C.C.M.T.
Investment O
192,086 $
192,120 $
34 $
(14,228) $
54 $
0.34%
31
0.03
The treasurer shall invest all
pubiic 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 finro objectives
have been met.
194,781 $
194,809 $
28 $
1,165 $
58 $
0.37%
29
0.03
195,056
195,071
15
(828)
64
0.39%
30
0.04
All data as of March 31, 2013