HomeMy WebLinkAbout69863 (2)2014
ECQNOMIC COMMENTARY
City of Palm Desert
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The Federal Open Market Committee (FOMC) wili meet next on March 18 and 19.
At its January 29 meeting, the FOMC indicated that it would reduce its monthly
securities purchases by another $10 billion for a total of $65 biilion per month,
down from the original $85 billion. The FOMC cited an improvement in economic
activity and labor market conditions as the basis for the policy change. Wells
Fargo Securities believes that the FOMC will continue to reduce its securities
purchases by $10 billion per month at each subsequent FOMC meeting.
Continued economic contraction in the retail sector is expected for the foreseeable
future. Retail analysts are forecasting that 15% of ail U.S. malis will either fail or
be converted into non-retail space within 10 years. Many retailers are expected
to announce job cuts, store closings, cuts in square footage, or all three.
JC Penney, for example, witl be closing 33 stores; Macy's will be ciosing five
stores; and Sears will be closing its flagship Ghicago store (Sears has closed
300 stores since 2010). Among the reasons cited for the closures are
unsustainable inventories; loss of foot traffic; internet shopping; and the
shrinkage of the middle class.
In January, the City and the RDA Successor Agency received approximately
$6.3 million and $21.6 million, respectively, in property taxes.
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City Treasurer
" Certified California Municipal Treasurer
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
$ 213,310 $
$ 213,310 $
$ - $
$ 15,125 $
$ 48 $
0.29%
1
0.00
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i Markets Team
City Treasurer
Paul S. Gibson, C.C.M.T.
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
investment uaiecnves
The treasurer 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 two objectives
have been met.
202,645 $ 204,899 $ 220,313
202,645 $ 204,899 $ 220,319
- $ - $ 6
7,589 $ 5,909 $ 13,559
53 $ 51 $ 59
0.31% 0.30% 0.31%
1 1 12
0.00 0.00 0.00
PORTFOLIO STATISTICS
i •
208,660 $ 201,302 $
208,660 $ 201,302 $
- $ - $
16,574 $ 6,521 $
47 $ 49 $
0.28% 0.30%
1 1
0.00 0.00
All data as of January 31, 2014