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HomeMy WebLinkAbout62425 (2)2013 City of Palm Deser� ��>�,«a�� .`//'NCGjIlJ'PJ' J �Jl/�Nl�Utf'/lI r��('�X�/'/ ECONOMIC COMMENTARY The federal Reserve Open Market Committee (FOMC) met on January 2930, and reaffirmed that it would continue with quantitative easing in order to keep long-term interest retes low, and to encourage more spending, investment, and hiring. This came amid news that Ihe U.S. economy had stalled in 4Q2012. The Fed attributed this to "weather-related disruptions and other transitory factors". The FOMC repeated that it would keep buying bonds ($85 billion per month) until unemployment numbers improve. It also reaffrmed its commitment to keep short-term interest rates near zero until unemployment falls from 7.8 percent to 6.5 percent, with inAation remaining in an acceptable range of 2.0 - 2.5 percent. The U.S. Treasury's debt credit rating will be up for review this year. In August 2071, Standard & Poor's lowered it from "AAA" to "AA+°, I( is believed that there is a 50/50 chance that either Moody's Investors Service or Fitch Ratings or both will also downgrade ihe Treasury's credit rating. Aside from a short-term hit to financial markets, no widespread abandonment of Treasuries by investors is likely, however, because there is no market deep enough or safe enough to replace them. There may be some long-term erosion of of the dollar's status as a reserve currency. In January, the City received approximately $6.8 million in property taxes. The RDA Successor Agency received approximately $18.5 million in property laxes. ✓�llll�.S. �O/l� L�L�✓i'%✓� �K City Treasurer Certified California Municipal Treasurer h-End Book Value $ h-End Market Value $ rGain(Loss) $ Year Book Variance $ :st Earnings $ -To-Maturity hted Maturity (Days) tive Duration 198,185 $ 198,223 $ 38 $ (32,215) $ 55 $ 0.35% 29 0.03 192,086 $ 192,120 $ 34 $ (14,228) $ 54 $ 0.34°/ 31 0.03 194,781 $ 194,809 $ 28 $ 1,165 $ 58 $ 0.37% 29 0.03 City Treasu�er PaW S. Gibson, C.C.M.T. Deputy City Treasurer Thomas W. Jeffrey, J.D., M.B.A. The [reasurer shall invest all public monies in a manner that ensures safery of principal; suficient liquidiry to finance the City's expenditures; and the highest yield possible after the previous two objectives have been met. 206,754 206,794 40 99 71 All data as of January 31, 2012 195,056 $ 195,071 $ 15 $ (828) $ 64 $ 0.39% 30 0.04 19Q990 $ i99,032 $ 42 $ (6,063) $ 64 $ 0.39 % 29 0.04 28 0.04