1996 09 11 IABT0 0 (V
4hf 4 11114� Qalwr4
78-495 CALLS TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000
FAX (619) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quin'ta, CA 92253
September 11, 1996 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II CONFIRMATION OF AGENDA
III PUBLIC COMMENT -(This is the time set aside for public comment on any matter not scheduled on the agenda.)
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on July 10, 1996 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for June & July, 1996
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - July and August 1996
B. Treasurer's Office Procedures
C. Recently Adopted State Legislation
D. LAIF Pooled Investment Board Report - June 1996
E. Workplan for Fiscal Year 1996/97
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT
MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 ��
INVESTMENT ADVISORY BOARD Business Session Item No. A
Meeting Date: September 11, 1996
TITLE:
Transmittal of Treasury Report
for June 30, 1996 and July 31, 1996
BACKGROUND:
There are several changes to previous Treasury Reports that have been made which
are by page as follows:
Authorized Investments and Diversification
► Percentages have been updated to conform to the FY 96/97 Investment
Policy limits.
► Percentages for all funds and surplus funds have been identified.
Summary of Holdings
► A column entitled surplus has been created.
► Average maturity added.
► Realized Gain (Loss) column eliminated
Summary of Investment Activities
► Expected Maturity column changes to Expected Maturity value.
Reconciliation of Actual and Surplus Funds
► New page;
► Shows accounts payable of $450,000.00
RECOMMENDATION:
Review, Receive and File the Treasury Report of June 30, 1996 and July 31, 1996.
Jphn M. FaIcbndr, Finance Director
TO:
FROM:
SUBJECT
DATE:
T0 0 (V
4hf 4 QuArA
MEMORANDUM
La Quinta City Council
John Falconer, Finance Director/Treasurer
Treasurer's Report for June 30, 1996
August 7, 1996
Attached is the Treasurer's Report for the month ending June 30, 1996. This report is submitted to the
City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
Cash and Investments:
Increase of $619,491. due to the net effect of revenues in excess of expenditures.
State Pool:
ICMA:
Decrease of $6,694,999. due to the net effect of transfers to and from the cash and the
purchase of Treasury Bills.
Increase of $60,470. due to interest earned.
U.S. Treasury Bills:
Increase of $8,365,178. due to the purchase of 2 U.S. Treasury Bills.
Mutual Funds:
Decrease of $3,453,610. due to the net affect of interest earned and the purchase of a
U.S. Treasury Bill.
Total decrease in cash balances $1,103,470.
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of La
Quinta used the Wall Street Journal to determine the fair market value of investments at month end.
S-7 i �
J hn M. Falcon r Date
finance Director/Treasurer
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CITY OF LA QUINTA
CITY
CITY
BALANCE SHEET 06/30/96
FIXED
LONG TERM
CITY ASSETS
DEBT RDA
ASSETS:
POOLED CASH
3,789,717.97
10,053,749.70
INVESTMENT T-BILL
9,867,398.72
LQHP CASH
45,308.62
BOND REDEMPTION CASH
162,023.37
BOND RESERVE CASH
391,279.13
BOND PROJECT CASH
13,849,505.77
BOND ESCROW CASH
10,217.55
PETTY CASH
1,000.00
ICMA DEFERRED COMPENSATION
546,683.42
CASH S INVESTMENT TOTAL
14,204,800.11
24,512,084.14
ACCOUNTS RECEIVABLE
90,600.15
68,951.23
LOAN/NOTES RECEIVABLE
95,445.00
DUE FROM OTHER AGENCIES
(57,244.84)
DUE FROM OTHER GOVERNMENTS
DUE FROM OTHER FUNDS
551,038.04
DUE FROM RDA
6,048,957.20
INTEREST ADVANCE -DUE FROM RDA
604,895.76
NSF CHECKS RECEIVABLE
1,126.84
ACCRUED REVENUE
130,120.05
108,982.87
TRAVEL ADVANCES
480.00
EMPLOYEE ADVANCES
PREPAID EXPENSES
45 024.68
_
RECEIVABLE TOTAL
6,863,959.84
824,417.14
WORKER COMPENSATION DEPOSIT
RENT DEPOSITS
RDA RDA FA
FIXED LONG TERM FINANCING LONG TERM
ASSETS DEBT AUTHORITY DEBT
15,456.64
698,149.25
713,605.89
UTILITY DEPOSITS 75.00
MISC. DEPOSITS 2,000.00 _
DEPOSITS TOTAL 2,075.00
GENERAL FIXED ASSETS 15,981,208.00 14,485,495.05
AMOUNT AVAILABLE TO RETIRE L/T DEBT 2,340,653.00
AMOUNT TO BE PROVIDED FOR LIT DEBT 298,816.00 70,592,432.92 8,360,000.00
TOTAL OTHER ASSETS 15,981,208.00 298,816.00 14,485,495.05 72,933,085.92 8,360,000.00
TOTAL ASSETS 21,070,834.95 15 981,208.00 298,816.00 25 336 501.28 14 485 495.05 72,933,085.92 713 605.89 8,360,000.00
LIABILITY
ACCOUNTS PAYABLE
831,303.65
DUE TO OTHER AGENCIES
749.00
DUE TO OTHER FUNDS
INTEREST ADVANCE -DUE TO CITY
ACCRUED EXPENSES
74,697.65
PAYROLL LIABILITIES
34,306.59
STRONG MOTION INSTRUMENTS
1,535.81
FRINGE TOED LIZARD FEES
82,417.40
SUSPENSE
DUE TO THE CITY OF LA QUINTA
PAYABLES TOTAL
1,025,010.10
ENGINEERING TRUST DEPOSITS
68,085.81
SO. COAST AIR QUALITY DEPOSITS
ARTS IN PUBLIC PLACES DEPOSITS
188,896.97
LQHP DEPOSITS
14,142.00
DEVELOPER DEPOSITS
147,449.71
MISC. DEPOSITS
1,468.00
AGENCY FUND DEPOSITS
1,564,851.05
ICMA-DEFERRED COMP DEPOSITS
546,683.42
TOTAL DEPOSITS
2,531,576.96
DEFERRED REVENUE
OTHER LIABILITIES TOTAL
COMPENSATED ABSENCES PAYABLE
DUE TO THE CITY OF LA QUINTA
NOTE DUE TO MURPHY, DALES, LANE
DUE TO COUNTY OF RIVERSIDE
DUE TO C.V. UNIFIED SCHOOL DISTRICT
DUE TO DESERT SANDS SCHOOL DISTRIC
BONDS PAYABLE
TOTAL LONG TERM DEBT
TOTAL LIABILITY
EQUITY -FUND BALANCE
3,556,587.06
17, 509,481.27 15, 981,208.00
589,833.54
551, 038.04
385,648.07
1,526,519.65
298,816.00
6,653,854.17
11,572,687.00
12,271,884.75
1,904,660.00
40,530,000.00 8,360,000.00
298,816.00 72,933,085.92 8,360,000.00
298,816.00 1,526,519.65 72,933,085.92 8,360,000.00
GRAND
TOTAL
13,843,467.67
9,867,398.72
45,308.62
177,480.01
1,089,428.38
13, 849, 505.77
10,217.55
1,000.00
546,683.42
39,430,490.14
159,551.38
95,445.00
(57,244.84)
551,038.04
6,048,957.20
604,895.76
1,126.84
239,102.92
480.00
45,024.68
7,688,376.98
75.00
2,000.00
2,075.00
30,466,703.05
2,340,653.00
79,251,248.92
112,058,604.97
159,179,547.09
1,421,137.19
749.00
551,038.04
460, 345.72
34,306.59
1,535.81
82,417.40
2,551,529.75
68,085.81
188,896.97
147,449.71
1,468.00
1,564,851.05
546,683.42
2,517,434.96
298,816.00
6,653,854.17
11,572,687.00
12,271,884.75
1,904,660.00
48,890,000.00
81,591,901.92
86,660,866.63
24, 068, 354.13 14,485,495.05 713,605.89 72,758,144.34
TOTAL LIABILITY & EQUITY 21 066 068.33 15.981.208.00 298,816.00 25,594,873.78 14 485 495.05 72,933 085.92 713 605.89 8,360,000.00 159,419,010.97
TO:
FROM:
SUBJECT:
DATE:
T a 414f 4 XP QU&M
MEMORANDUM
La Quinta City Council
John Falconer, Finance Director/Treasurer
Treasurer's Report for July 31, 1996
August 29, 1996
Attached is the Treasurer's Report for the month ending July 31, 1996. This report is submitted to the City
Council each month after a reconciliation of accounts is accomplished by the Finance Department.
Cash and Investments:
Decrease of $221,033. due to the net effect of expenditures in excess of revenues.
State Pool:
ICMA:
Increase of $26,163. due to the net effect of transfers to and from the cash and
investment accounts and interest earned.
Decrease of $14,597. due to stock market adjustment.
U.S. Treasury Bills:
Decrease of $7,378. due to the net purchase and sale of 1 U.S. Treasury Bill.
Mutual Funds:
Decrease of $107,885. due to the net affect of interest earned and debt service payments
due.
Total decrease in cash balances $324,730.
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of La
Quinta used the Wall Street Journal to determine the fair market value of investments at month end.
451"2-ql� 6 _
Ihn M. Falconer
nance Director/Treasurer
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CITY OF LA QUINTA
BALANCE SHEET 07/31/96
CITY
ASSETS:
POOLED CASH
3,741,561.04
INVESTMENT T-BILL
9,867,398.72
LQHP CASH
BOND REDEMPTION CASH
BOND RESERVE CASH
BOND PROJECT CASH
BOND ESCROW CASH
PETTY CASH
1,000.00
ICMA DEFERRED COMPENSATION
532,086.53
CASH 8, INVESTMENT TOTAL
14,142,046.29
ACCOUNTS RECEIVABLE
8,608.75
LOAN/NOTES RECEIVABLE
DUE FROM OTHER AGENCIES
DUE FROM OTHER GOVERNMENTS
DUE FROM OTHER FUNDS
DUE FROM RDA
6,048,957.20
INTEREST ADVANCE -DUE FROM RDA
655,303.74
NSF CHECKS RECEIVABLE
2,104.84
ACCRUED REVENUE
6,863.52
TRAVEL ADVANCES
350.00
EMPLOYEE ADVANCES
PREPAID EXPENSES
23,105.00
RECEIVABLE TOTAL
6,745,293.05
WORKER COMPENSATION DEPOSIT
RENT DEPOSITS
CITY CITY RDA
RDA FA
FIXED LONG TERM FIXED
LONG TERM FINANCING LONG TERM
GRAND
ASSETS DEBT RDA ASSETS
DEBT AUTHORITY DEBT
TOTAL
9,907,035.60
13,648,596.64
9,867,398.72
45,308.62
45,308.62
1,309.51
15,458.44
16,767.95
392,835.68
700,924.51
1,093,760.19
13,890,608.68
13,890,608.68
10,227.32
10,227.32
1,000.00
532,086.53
24,247,325.41
716,382.95
39,105,754.65
68,951.23
77,559.98
95,445.00
95,445.00
551,038.04 551,038.04
6,048,957.20
655, 303.74
2,104.84
6,863.52
350.00
272,514.50 295,619.50
987.948.77 7,733,241.82
UTILITY DEPOSITS
75.00
75.00
MISC. DEPOSITS
2,100.00
2,100.00
DEPOSITS TOTAL
2,175.00
2,175.00
GENERAL FIXED ASSETS
15,981,208.00
11,526,745.05
27,507,953.05
AMOUNT AVAILABLE TO RETIRE LIT DEBT
2,340,653.00
2,340,653.00
AMOUNT TO BE PROVIDED FOR LIT DEBT
298,816.00 91,438,211.90
8,200,000.00 99,937,027.90
TOTAL OTHER ASSETS
15,981,208.00
298,816.00 11,526,745.05 93,778,864.90
8,200,000.00 129,785,633.95
TOTAL ASSETS
20,889,514.34 15 981 208.00
298,816.00 25,235,274.18 11 526 745.05 93,778,864.90
716,382.95 8,200 000.00 176,626,805.42
LIABILITY
ACCOUNTS PAYABLE
165,432.00
DUE TO OTHER AGENCIES
26,732.44
DUE TO OTHER FUNDS
INTEREST ADVANCE -DUE TO CITY
ACCRUED EXPENSES
29,270.94
PAYROLL LIABILITIES
32,069.95
STRONG MOTION INSTRUMENTS
928.00
FRINGE TOED LIZARD FEES
82,417.40
SUSPENSE
DUE TO THE CITY OF LA QUINTA
PAYABLES TOTAL
336,850.73
ENGINEERING TRUST DEPOSITS
71,854.06
SO. COAST AIR QUALITY DEPOSITS
ARTS IN PUBLIC PLACES DEPOSITS
182,571.98
LQHP DEPOSITS
DEVELOPER DEPOSITS
147,449.71
MISC. DEPOSITS
1,405.00
AGENCY FUND DEPOSITS
1,601,005.42
ICMA-DEFERRED COMP DEPOSITS
532,086.53
TOTAL DEPOSITS
2,536,372.70
DEFERRED REVENUE
OTHER LIABILITIES TOTAL
COMPENSATED ABSENCES PAYABLE
298,816.00
DUE TO THE CITY OF LA QUINTA
NOTE DUE TO MURPHY, DALES, LANE
DUE TO COUNTY OF RIVERSIDE
DUE TO C.V. UNIFIED SCHOOL DISTRICT
DUE TO DESERT SANDS SCHOOL DISTRIC
BONDS PAYABLE
TOTAL LONG TERM DEBT
TOTAL LIABILITY
EQUITY -FUND BALANCE
2,873,223.43
18,016,290.91 15,981,208.00
510,756.00
551,038.04
20, 725.00
1,082,519.04
14,142.00
14,142.00
6,704,262.15
11,925,575.00
11,797,367.75
1,276,660.00
62,075,000.00 8,200,000.00
298,816.00
93,778,864.90 8,200,000.00
298,816.00 1,096,661.04
93,778,864.90 8,200,000.00
676,188.00
26,732.44
551,038.04
49, 995.94
32,069.95
928.00
82,417.40
1,419,369.77
71,854.06
182,571.98
14,142.00
147,449.71
1,405.00
1,601,005.42
532,086.53
2,550,514.70
298,816.00
6,704,262.15
11,925,575.00
11,797,367.75
1,276,660.00
70,275,000.00
102,277,680.90
106,247,565.37
24,138,613.14 11,526,745.05 716,382.95 70,379,240.05
TOTAL LIABILITY & EQUITY 20,889,514.34 15 981 208.00 298,816.00 25 235 274.18 11 526 745.05 93 778,864.90 716 382.95 8,200,000.00 176,626,805.42
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INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A
Meeting Date: September 11, 1996
TITLE:
Month End Cash Report - July and August 1996
BACKGROUND:
At the July 10, 1996 meeting, the Board discussed the creation of a month end
cash report.
This cash report would not be a complete Treasury Report (exclude petty cash,
deferred compensation and fiscal agent balances) but would report in a timely
fashion selected cash balances.
The items that would be reported would be the regular checking and housing
checking, money market, two LAIF accounts and custodian investment balances.
RECOMMENDATION:
This is the first month end cash reports that have been presented. These were
based upon the discussions at the July Board meeting.
Staff reports your review and comment regarding this report being a regular agenda
item.
Jahn M. Falconbr, Finance Director
City of La Quinta
Month End Cash Report - See Footnote
July 31, 1996
:�:Tll'
lls Fargo Wells Fargo Wells Fargo
F2N��on heckin Housin Mone Markel
_ 7PANCIA 75.39 71,046.36 333,895.78
Deposits
Direct Deposit - State of California
Daily Deposit
Interest
,Misc Deposit
Transfers
LAIF # 703
Disbursements
Misc debit
City
LAIF
31,345.75
330.00 95,349.58
22.57
51.00
(350,000.00) 350,000.00
(20.00)
RDA
LAIF Investments Total
3,886.55 9,867,398.72 23,983,328.91
31,345.75
95,679.58
22.57
51.00
0.00
(20.00)
Ending Balance per books
_675_39 _
71,376.36
110,644.68
6,186,426.11
7,873,8865
.5
9,867,398_72
0,7.81
24,1140
Add Back
0.00
675.39
71,376.36
110,644.68
6,186,426.11 _
7,873,886.55
9,867, 398.72
24,110,407.81
_
Ad'usted Balance
Estimated Interest Accruals
4,949.00
4,949.00
May
June
July
675.39
71 376.36
27,494.00
38,914.00
33,722.00
44,733.00
33,722.00
111,141.00
110 644.68
6 213,920.11
_
7 912 800.55
9 950 802.72
24 260 219.81
Ad'usted Balances after accruals
- 182,696.43 14,126,720.66
0.7531 % _ 58.2300%
------------- - -- —
9,950,802.72
41.0170%
24,260,219.81
100.00%
Investment Class
Percentages --
Footnotes:
The following report is a special purpose report which has been prepared at the request of the
Investment Advisory Board. This report was created because the Finance Department cannot
prepare the Treasurers report for the month end before the 2nd Wednesday of each month
(e.g. June report for the July meeting). As a result, the IAB does not receive the Treasurers
Report until approximately 1 1 /2 months after the date of the report (e.g. June report for the
August meeting).
The report is prepared on a monthly basis from the Daily Cash Report. The purpose of this
report is for staff to project daily cash needs and invest excess cash. This report does not
include all investments of the City, RDA and Financing Authority.
Specifically excluded from this report are the Petty Cash , Deferred Compensation, and Fiscal
Agent accounts. These accounts are included in the Treasurers Report.
In addition, the percentage numbers in this report are for information only. These percentages
should not be used to compare the maximum allowable percentages allowed in the investment
policy because this report does not include all investments and is not prepared from the
reconciled book balances.
City of La Quinta
Month En&Cash Report - See Footnote
August 31, 1996
Wells Fargo
ells
Wells Fargo
Wells Fargo
City
RDA
Description
Housing
Money Market
LAIF _
LAIF
Investments
Total
Beginning Balance - 8/29/96
_Checking
(3,767,273.22)
86,056.58
150,419.64
5,836,426.11
7,873,886.55
9,898,254.34
20,077,770.00
Deposits
Direct Deposit - State of California
28,331.68
28,331.68
Daily Deposit
43.00
45,482.05
45,525.05
Transfers
LAIF # 706
(175,000.00)
175,000.00
0.00
LAIF # 708
2,280,000.00
(2,280,000.00)
0.00
Disbursements
Wire Fee - To be Reversed
(20.00)
(20•00)
Ending Balance per books
(1,487,273.22)
86,099.58
49,213.37
6,011,426.11
5,593,886.55
9,898,254.34
20,151,606.73
Add Back - Wire 9/3/96
Add Back - Wire 9/3/96
642,676.54
842,786.25
642,676.54
842,786.25
Adjusted Balance
(1,810.43)
86,099.58
49,213.37
6,011,426.11
5,593,886.55
9,898,254.34
21,637,069.52
Estimated Interest Accruals
May
June
July
August
27,494.00
29,447.00
38,914.00
32,950.00
4,949.00
33,722.00
44,733.00
46,380.00
4,949.00
33,722.00
111,141.00
108,777.00
er
Adjusted Balances aftaccruals
1 L810.43Z
86 099.58
49 213.37
6 068,367.11
5,665,750.55_j
10,028,038.34
21 895 658.52
Investment Class 133,56f 52 11734,117.66 T10,028,038.34 21,895,658.52
-- - - --- -- ---
0 6097°� T 53.5911 % 45.7992% 100.00%
Percentages - -------- ---- �---�-----1--------- -- --�------------ —-
Footnotes:
The following report is a special purpose report which has been prepared at the request of the
Investment Advisory Board. This report was created because the Finance Department cannot
prepare the Treasurers report for the month end before the 2nd Wednesday of each month (e.g.
June report for the July meeting). As a result, the IAB does not receive the Treasurers Report
until approximately 1 1/2 months after the date of the report (e.g. June report for the August
meeting).
The report is prepared on a monthly basis from the Daily Cash Report. The purpose of this
report is for staff to project daily cash needs and invest excess cash. This report does not
include all investments of the City, RDA and Financing Authority.
Specifically excluded from this report are the Petty Cash , Deferred Compensation, and Fiscal
Agent accounts. These accounts are included in the Treasurers Report.
In addition, the percentage numbers in this report are for information only. These percentages
should not be used to compare the maximum allowable percentages allowed in the investment
policy because this report does not include all investments and is not prepared from the
reconciled book balances.
v
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44
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INVESTMENT ADVISORY BOARD Correspondence & Written Material Item B
Meeting Date: September 11, 1996
TITLE:
Treasurer's Office Procedures
BACKGROUND:
Since the City has updated its investment policies, Staff has been preparing written
procedures. These procedures provide guidance in making investment decisions.
Staff has completed written procedures for 1) Daily Investment Activity and 2)
Preparation of Monthly Treasurer's Report.
RECOMMENDATION:
Staff is providing these policies for your review and comment at the October
Investment Advisory Board meeting.
hn M. Falconbr, Finance Director
City of La Quinta
Daily Investment Activity
Treasurers Office
Activity
The Treasurer receives a printout of bank activity from the bank on-line system (ACTION) at
7:00 AM each morning.
2 The Treasurer performs a general review of daily printout of bank activity from the bank
on-line system (ACTION) and forwards to the Account Technician.
3 The Account Technician reviews the ACTION report to ensure prior days activities were
posted by the bank as follows:
Deposits
Checks that have cleared
Interbank account transfers
Outgoing wires
Trustee book transfers
Custodian withdrawals
4 The Account Technician prepares a daily cash report for the following accounts:
General Bank Account
Housing Bank Account
Money Market Bank Account
Local Area Investment Fund _ City
Local Area Investment Fund _ RDA
Investments
The Department Secretary prepares the daily deposit after reconciling prior days cash
5 receipts. Two deposit slips are prepared daily - one for cash and one for checks. The two
deposits are placed into sealed bags for daily pickup by Brinks.
The Department Secretary gives the Account Technician an adding machine tape with the
6 date and amount of each deposit for entry into the daily deposit report. The Department
Secretary gives the deposit bags to the Account Clerk.
7 The Account Clerk makes an entry into the Brinks Customer receipt book. The cash receipts
are deposited into the Money Market Account for maximum earnings.
8 In addition to the normal daily cash receipts the Account Technician records the following
sources of cash into the daily cash report from time to time from the ACTION report:
Housing Program lock box collections
Investment Earnings
State of California wires
Incoming wires
Parking Violations deposits
Voided checks
Misc Service fee credits
City of La Quinta
Daily Investment Activity
Treasurers Office
Activity
9 The Account Technician enters the disbursements into the daily cash report with the
estimated date of release. Disbursements consist of the following:
Regular accounts payable checks
Emergency checks
Payroll Check ACH's
Payroll tax wires
Outgoing wires
Misc Service fee debits
The Account Technician adds back to available cash the regular accounts payable checks
and outgoing wires. Regular accounts payable checks and outgoing wires will be released
10 and cash withdrawn when due. Regular accounts payable checks, emergency checks,
outgoing wires, payroll checks and direct deposits are reported to the Council on the Demand
Register.
11 The Account Technician prints out three copies of the daily cash report and distributes the
reports as follows:
Account Technician
Accounting Supervisor - Approves and forwards to Treasurer
Treasurer - Approves, reviews and files
12 The Account Technician forwards the daily ACTION report to the Financial Services
Assistant performing the monthly bank reconciliation.
13 The Treasurer receives the Daily Cash Report by 9:00 A.M. which has been initialed by the
Account Technician and the Accounting Supervisor
14 The Treasurer reviews the Daily Cash Report. The basic investment strategy is as follows:
The checking account is reviewed to ensure if adequate funds are available for the payment
of bills. The Treasurer should review for negative amounts in the checking account to
15 determine if transfers should be made to cover checks that have been released. When
considering transfers, the Treasurer should compare the checking account cash available to
the ACTION cash available to determine cash float. i.e. outstanding checks.
If funds are needed in the checking account the Treasurer will determine if adequate funds
are available in the money market account. If funds are available the Treasurer will perform a
16 transfer from the money market account to the checking account by preparing a deposit slip
for the checking account and a withdrawal slip for the money market account. This must be
done by 10:30 A.M. for same day credit.
City of La Quinta
Daily Investment Activity
Treasurers Office
Activity
The Treasurer will give the deposit slip for the checking account and the withdrawal slip for
17 the money market account to the Secretary. The Secretary will place the two slips into a
sealed bag for pickup by Brinks and give the bag to the Account Clerk who logs the bag into
the Brinks Customer receipt book.
If the 10:30 A.M. Brinks pickup deadline is not met, the Treasurer can physically deliver the
deposit and withdrawal slip to the bank, call the local bank branch and make a telephone
18 transfer or call teletransfer services. The Treasurer and City Manager may make telephone
transfers. The latter two methods will count toward the three (3) withdrawal and three (3)
deposit monthly maximum in the money market account.
If funds are not available in the money market account, the Treasurer will contact the Local
Agency Investment Fund and request a withdrawal. In order to receive same day credit
19 LAIF must receive the request by 9:30 AM.The Treasurer contacts LAIF in Sacramento and
provides their representative with the amount of the request, Bank account number, and
Personal Identification Number. LAIF will only transfer funds to bank accounts on file. Future
dated LAIF withdrawal requests may be made 10 days in advance
The Treasurer identifies whether the LAIF funds are deposited into the Checking account or
20 Money Market Account and whether the withdrawal will be from the City or Redevelopment
LAIF account. LAIF provides the Treasurer a trade confirmation number. In the absence of
the Treasurer, the City Manager may make LAIF withdrawals and deposits.
The Treasurer notifies the Account Technician of the withdrawal. A copy of the daily cash
report is given to the Account Technician that states which LAIF accounts were decreased
21 and whether the checking account was increased or the money market account was
increased. This information is then updated on the next day daily cash report by the Account
Technician.
The Treasurer would transfer LAIF funds into the checking account to pay bills. The
Treasurer would transfer LAIF funds into the Money Market Account to pay for investments,
22 wires, or book transfers. Investments would be made by our Custodian as authorized by the
Treasurer through the Trade Settlement Instruction/Authorization Form, wires would be made
through teletransfer procedures, and book entries would be approved by the City Manager
and City Treasurer and made by authorized bank personnel.
The Treasurer will determine if there is excess funds in the money market account. The
Treasurer will first determine if funds are needed in the checking account. If funds are
23 needed a transfer to the checking account as previously described will be made. If excess
funds are still available a transfer funds to Local Agency Investment Account (LAIF) will be
made.
The Treasurer will contact the State of Cailifomia LAIF office by 9:30A.M. to advise it of a
24 LAIF transfer request. The Treasurer will provide LAIF with the amount ,and the LAIF
account number to credit. LAIF will provide the Treasurer with a confirmation number. LAIF
transfers may be made 10 calendar days in advance.
City of La Quinta
Daily Investment Activity
Treasurers Office
Activity
The Treasurer will call the Wells Fargo toll free LAIF phone number by 11:00 A.M. and
25 provide the date, municipality name, person authorizing transfer, bank account number to be
debited, amount, LAIF account number, and LAIF confirmation number to Wells Fargo
personnel.
26 The Treasurer then writes the information on the daily cash report and forwards a copy to the
Account Technician who enters this transaction in the next days daily cash report.
The Treasurer logs the deposit in the LAIF spreadsheet. A copy of the spreadsheet, which
27 records all LAIF activity, is given to the Financial Services Assistant who prepares the
Treasurer's Report. on a monthly basis
If securities are purchased, the Treasurer should determine the type of investment and
28 maturity in accordance with the City investment policy. A separate file for each transaction
will be created.. The Treasurer will obtain the approval of the City Manager before
commencing the purchase.
The Treasurer will next obtain three bids from broker/dealers for the investments to be
29 obtained. The Treasurer will instruct the lowest successful broker/dealer to deliver securities
to the City custodian on the settlement date.
The Treasurer will receive a copy of the Bloomberg screen printout from the broker/dealer
30 the same day and will receive a trade confirmation several days later from the successful
broker/dealer. The Treasurer will take information off the Bloomberg screen printout and
prepare a trade settlement instruction/authorization form which is faxed to the City custodian.
The Treasurer will transfer funds into the money market account on the settlement date.
The Custodian will automatically withdraw the funds from the money market account and
31 deliver the securities into the custodian account.
The Treasurer will review the ACTION report that is received the next day to ensure that the
funds that have been withdrawn match the amount reported on the trade settlement by the
32 custodian. On the settlement date the Treasurer will forward the Account Technician
information on this investment purchase. The Account Technician will enter the investment
purchase into the daily cash report by decreasing the money market account and increasing
the investment account on the next business day cash report.
The Treasurer will inquire through modem into the bank trust account software and print out
a copy of the security held in the City of La Quinta account by the City of La Quinta
33 custodian. The Treasurer may also able to inquiry through modem of the pending trade prior
to settlement if adequate time between the purchase and settlement dates exist.
City of La Quinta
DNly Investment Activity
Treasurers Office
Activity
The investment policy has a buy and hold investment strategy, therefore, the sale of
34 investments is not anticipated. If the sale of investments before maturity is required it will be
done to meet liquidity needs or because of diminishing credit rating. All sale of investments
before maturity require the prior approval of the City Manager. In addition, all sales require
disclosure to the Investment Advisory Board in a manner that will clearly identify such sales.
The Treasury will contact the three broker/dealers to obtain bids for the sale.of investments
before maturity. The Treasurer will accept the highest bid. The Treasurer will receive a copy
35 of the Bloomberg screen printout. The Treasurer will take information off the Bloomberg
screen and prepare a trade settlement instruction/authorization form which is faxed to the
City custodian.
The Trade Settlement Instruction/Authorization gives the settlement date. The Custodian will
36 release the City Investments when the cash is received from the Broker/Dealer. After the
transaction takes place the cash is transferred to the City Money Market Account.
37 For investments that mature on time, the Treasurer will assess the cash needs of the City.
If no future trade is done that will settle on the day the previous investment matures, the
38 cash received will be transferred by the custodian to the money market account.
If the Treasurer does another trade that settles on the same day that the previous investment
39 matures, the difference in prices will either be sent to or forwarded from the money market
account by the Custodian. The Treasurer must ensure that funds are available in the money
market account if the new investments cost more than the matured investments.
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity Report
The Financial Services Assistant is responsible for
the preparation of all pages of the monthly
Treasurer's Report, except for the Balance Sheet
which is prepared by the Accounting Supervisor.
The Treasurer is responsible for the review,
approval and submission of the Treasurer's Report.
2 The followings records are used in the preparation
of the monthly Treasurer's Report:
Wall Street Journal
Monthly Custodian Account Printout & Statements
Monthly Bond Trustee Statements
Monthly Bank Statements
Monthly Deferred Compensation Statements
Monthly LAIF Statement
Balance Sheet
At month end, the Treasurer clips the Wall Street
3 Journal page with Government Security market
values and forwards to Financial Services
Assistant. Holdings
At month end the Treasurer, via modem, prints out
(1) the holdings, and (2) the activities for the month
from the City custodian. The Treasurer compares
the ending balance to the daily cash report for the
4 end of the month and variances investigated. The
reports are then forwarded to the Financial
Services Assistant. Note: the Treasurer also
receives a hard copy report 10 days after the end of
the month. Holdings
The Financial Services Assistant enters the
purchases and sales listed in the City custodian
5 printouts into the Treasurer's Report. The Financial
Services Assistant also enters the month end
holdings into the Treasurer's Report from the City
custodian printouts. Activity & Holdings
The Financial Services Assistant receives the
6 monthly account statements from the bond trustees
typically 10 days after the end of the month.
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity. Report
The Financial Services Assistant summarizes the
monthly transactions from each bond issue
sub -account into a spreadsheet. This spreadsheet
7 shows the interest that was earned, and
disbursements, debt service payments, and
transfers between sub -accounts that were made.
The Financial Services Assistant enters the month
end holdings into the Treasurer's Report. Holdings
The Financial Services Assistant enters the mutual
fund activities for each bond issue into a
8 spreadsheet. This spreadsheet calculates the
interest rate that was earned. The interest rate
earned is entered into the Treasurer's Report. Holdings
The Financial Services Assistant enters the
9 purchases and sales that were made for
government investments and mutual funds -from the
bond funds into the Treasurer's Report. Activity
The Treasurer compares the LAW balances
10 reflected on the LAIF spreadsheet and the
balances reported on the Daily Cash Report at
month end.
The Treasurer forwards a copy of the LAIF
spreadsheet to the Financial Services Assistant.
The Financial Services Assistant records the LAIF
11 purchases and sales and quarterly interest activity
in the Treasurer's Report. In addition, the Financial
Services Assistant receives a report directly from
LAW with account balances. Activity
The Financial Services Assistant records the month
end LAIF balances in the Treasurer's Report. For
quarter end months ( September, December,
12 March and June ) interest rate and market value
information is reflected in the Treasurer's Report.
In addition to the LAIF spreadsheet, LAIF also
sends a monthly holdings report. Holdings
The Financial Services Assistant, on a monthly
13 basis, reconciles the bank accounts and enters the
book and bank balances into the Treasurer's
Report as well as any interest rate information. Holdings
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity Report
The Financial Services Assistant, on a monthly
14 basis, enters the deferred compensation balance
and interest rate information into the Treasurer's
Report. Holdings
The Financial Services Assistant compares the
ending cash as reflected in the month end holdings,
15 month end investments by type, month end fund
summary and month end trial balance to ensure
that all of the ending amounts are in agreement.
The Financial Services Assistant calculated the
16 average interest rate and average maturity of the
portfolio. Holdings
The Financial Services Assistant enters the six
17 month Treasurer's Bill Benchmark from the Wall
Street Journal. Holdings
After all cash entries are made for the month the
Accounting Supervisor prepares the monthly trial
18 balance spreadsheet for the City, RDA, and
Financing Authority. A copy of this page is
forwarded to the Financial Services Assistant. Balance Sheet
The Financial Services Assistant records all of the
cash balances from the accounting software into
19 the fund summary section of the Treasurer's
Report. The Financial Services Assistant
reconciles the cash balances between these two
reports and variances investigated. Fund Balances
The Financial Services Assistant updates the
20 monthly summary of cash by investment type in the
Treasurers Report. Fund Balances
21 The Financial Services Assistant determines if the
investments are surplus or non -surplus funds. Holdings
The Financial Services Assistant updates the
surplus worksheet by subtracting from total actual
22 funds the restricted investments, negative bank
account balances, and accounts payable payments
to arrive at surplus funds. Actual and Surplus Funds
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity
The Financial Services Assistant updates the
Treasurer's Report Authorized Investments and
Diversification page. Any exception that is noted
23 should be brought to the Treasurers attention. If
the Financial Services Assistant and Treasurer do
not agree on the exception then the City Manager
should be consulted.
Rem
Authorized Investments
and Diversification
The Financial Services Assistant, in consultation
with the Treasurer, updates the Treasurer's Report
24 cover page showing the increase and/or decreases
in the investment types and the reason for the
changes. Treasurer's Cover Page
The Financial Services Assistant forwards a copy of
25 the Treasurer Report to the Treasurer consisting of
the following:
Treasurers Cover Letter
Authorized Investments And Diversification
Summary of Holdings
Summary of Investment Activities
Reconciliation of Actual and Surplus Funds
Distribution of Cash & Investments & Balances
Trial Balance for City, RDA and Financing Authority
The Treasurer reviews the Treasurer's Report and
returns the document for corrections, if any, to the
26 Financial Services Assistant. After any corrections
have been made the Treasurer signs and dates the
report and forwards the report to Department
Secretary.
The Department Secretary prepares a staff report
and attaches the Treasurer's Report for the
Investment Advisory Board Agenda. The Treasurer
27 signs the staff report and the Treasurer's report is
included in the agenda. For the City Council
agendas, the Department Secretary prepares an
Agenda Item Processing Form (AIPF) and attaches
the Treasurer's Report.
City of La Quinta
-Preparation of Monthly Treasurer's Report
Treasurers Office
Activ ty_
The Financial Services Assistant forwards the
monthly investment activity sent by LAIF to the
28 Department Secretary who prepares a staff report
for the Investment Advisory Agenda. The Treasurer
signs the staff report which is included in the
agenda.
Report
doop ,w..T� •C�
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OF TNT
INVESTMENT ADVISORY BOARD Correspondence & Written Material Item C
Meeting Date: September 11, 1996
TITLE:
Recently Adopted State Legislation
BACKGROUND:
The following are state legislation that has been adopted:
AB2845, Sweeney: Local Investment Reports
Requires that quarterly investment reports prepared by a county treasurer concerning funds on deposit
in the county treasury be provided to the fiscal officer responsible for the funds of any local agency
that has funds on deposit in the county treasury. In addition, the bill requires that the results of any
audit conducted of funds in the county treasury be provided to any public agency or official with funds
in the treasury. Urgency. As introduced 1 /1 1 /96.
Status: Chapter 81, Statutes of 1996
SB 864, Craven: Local Agency Investment Authority
Enacts numerous revisions to the statutes governing local agency investment of surplus and sinking
fund monies. Specifically, the bill: (a) explicitly authorizes local agencies to invest funds in money
market funds regulated by the Securities and Exchange Commission; (b) clarifies the authority of local
agencies to invest in mutual funds whose underlying investments consist of securities eligible for direct
investment by a local agency; and (c) deletes the requirement that investments in repurchase
agreements be transacted only with primary dealers of the Federal Reserve Bank of New York.
Urgency. As amended 6/13/96
Status: Chapter 156, Statutes of 1996
SB 864 will require the consideration of changes to the Investment Policy. Specifically,
1) Whether to increase the surplus percentage from 15% to 20%?
2) Whether to expand the allowable types of mutual funds the City can now invest in?
I have attached a complete version of SB 864 for your review.
RECOMMENDATION:
When the investment policies are updated, Staff recommends that for mutual funds 1) the surplus
percentage be increased from 15% to 20% and 2) that the City not expand the allowable types of
mutual funds the City may currently invest in.
oh M. Falconer, Finance Director
CA SB 864 08/05/96
California 1995-96 Regular Session
1995 CA SB 864
Enacted
Craven
CHAPTER 156
FILED WITH SECRETARY OF STATE JULY 12, 1996
APPROVED BY GOVERNOR JULY 11, 1996
PASSED THE SENATE JUNE 27', 1996
PASSED THE ASSEMBLY JUNE 20, 1996
AMENDED IN ASSEMBLY JUNE 13, 1996
AMENDED IN ASSEMBLY JUNE 10, 1996
AMENDED IN ASSEMBLY MAY 14, 1996
AMENDED IN ASSEMBLY MAY 21 1996
AMENDED IN SENATE APRIL 27, 1995
AMENDED IN SENATE APRIL 25, 1995
AMENDED IN SENATE APRIL 6, 1995
AMENDED IN SENATE MARCH 27, 1995
SENATE BILL No. 864
CHAPTER 0
Page 1
An act to amend Sections 27000.7, 27131, 27132.1, 27132.2, 27132.3,
27136, 53601, 53601.6, 53635, and 53646 of the Government Code, relating
to local government, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 864, Craven. Local government finance.
(1) Under existing law, the legislative body of a local agency
having money in a sinking fund of, or surplus money in, its treasury not
required for the immediate necessity of the local agency, may invest the
funds in any of several specified investments, including repurchase
agreements and.reverse repurchase agreements that are made with primary
dealers of the Federal Reserve Bank of New York, and shares of
beneficial interest issued by diversified management companies. If a
county or city and county chooses to invest surplus funds, the board of
supervisors is required to establish a county treasury oversight
committee with a specified membership and duties.
This bill would specify that restrictions on campaign contributions
by the employer of a member of an oversight committee include the period
during which the employee is a member of the committee. The bill would
also expand restrictions on campaign contribution activities by a member
of an oversight committee to include raising funds for a candidate for
local treasurer or the governing board of any local agency that has
deposited funds in the county treasury. The bill would also delete the
requirement that investments in repurchase agreements may only be made
with primary dealers of the Federal Reserve Bank of New York. The bill
would also revise and recast the conditions under which investments may
be made in shares of beneficial interest and would increase the
percentage of an agency's surplus funds that may be invested in this
CA SB`864 08/05/96 Page 2
type of investment from 15% to 200.
(2) Existing law requires a local agency treasurer or chief fiscal
officer to render a quarterly financial.report regarding investments to
the chief executive officer, the internal auditor, and the legislative
body. If a local agency has placed all of its investments in the Local
Agency Investment Fund, Federal Deposit Insurance Corporation -issued
accounts in a bank or savings and loan association, a county investment
pool, or a combination of these investments, the treasurer or chief
fiscal officer may instead supply the most recent statement received
from the institution.
This bill would instead provide that the exception to the
requirement that a quarterly report be rendered would apply for local
agency investments that have been placed in any of these institutions.
(3) The bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 27000.7 of the Government Code is amended to
read:
27000.7. (a) No person shall be eligible for election or
appointment to the office of county treasurer, county tax collector, or
county treasurer -tax collector of any county unless that person meets at
least one of the following criteria:
(1) The person has served in a senior financial management position
in a county, city, or other public agency dealing with similar financial
responsibilities for a continuous period of not less than three years,
including, but not limited to, treasurer, tax collector, auditor,
auditor -controller, or the chief deputy or an assistant in those
offices.
(2) The person possesses a valid baccalaureate, masters, or doctoral
degree from an accredited college or university in any of the following
major fields of study: business administration, public administration,
economics, finance, accounting, or a related field, with a minimum of 16
college semester units, or their equivalent, in accounting, auditing, or
finance
(3) The person possesses a valid certificate issuedbylthe
commencing
California State Board of Accountancy pursuantChapter
With Section 5000) Of Division 3 of the Business and Professions Code,
showing that person to be, and a permit authorizing that person to
practice as, a certified public accountant.
(4) The person possesses a valid charter issued by the Institute of
Chartered Financial Analysts showing the person to be designated a
Chartered Financial Analyst, with a minimum of 16 college semester
units, or their equivalent, in accounting, auditing, or finance.
(5) The person possesses a valid certificate issued by the Treasury
Management Association showing the person to be designated a Certified
CA SB 864 08/05/96 Page 3
Cash Manager, with a minimum of 16 college semester units, or their
equivalent, in accounting, auditing, or finance.
(b) This section shall only apply to any person duly elected or
appointed as a county treasurer, county tax collector, or county
treasurer -tax collector on or after January 1, 1998.
SEC. 2. Section 27131 of the Government Code is amended to read:
27131. The board of supervisors in each county or city and county
shall, if the county or city and county is investing surplus funds,
establish a county treasury oversight committee. The board of
supervisors, in consultation with the county treasurer, shall determine
the exact size of the committee, which shall consist of from 3 to 11
members, and the categories from which the members shall be represented,
as specified in subdivisions (a) to (g), inclusive, of Section 27132.
Members shall be nominated by the treasurer and confirmed by the board
of supervisors.
SEC. 3. Section 27132.1 of the Government Code is amended to read:
27132.1. A member may not be employed by an entity that has (a)
contributed to the campaign of a candidate for the office of local
treasurer, or (b) contributed to the campaign of a candidate to be a
member of a legislative body of any local agency that has deposited
funds in the county treasury, in the previous three years or during the
period that the employee is a member of the committee.
SEC. 4. Section 27132.2 of the Government •Code is amended to read:
27132.2. A member may not directly or indirectly raise money for a
candidate for local treasurer or a member of the governing board of any
local agency that has deposited funds in the county treasury while a
member of the committee.
SEC. 5. Section 27132.3 of the Government Code is amended to read:
27132.3. A member may not secure employment with bond underwriters,
bond counsel, security brokerages or dealers, or with financial services
firms during the period that the person is a member of the committee or
for three years after leaving the committee.
SEC. 6. Section 27136 of the Government Code is amended to read:
27136. (a) Notwithstanding any other provision of law, any local
agency, public agency, public entity, or public official that has funds
on deposit in the county treasury pool and that seeks to withdraw funds
for the purpose of investing or depositing those funds outside the
county treasury pool, shall first submit the request for withdrawal to
the county treasurer before withdrawing funds from the county treasury
pool.
(b) The county treasurer shall evaluate each proposed withdrawal for
its consistency with the criteria adopted pursuant to subdivision (h) of
Section 27133. Prior to approving a withdrawal, the county treasurer
shall find that the proposed withdrawal will not adversely affect the
CA SB 864 08/05/96 Page 4
interests of the other depositors in the county treasury pool.
SEC. 7. Section 53601 of the Government Code is amended to read:
53601. The legislative body of a local agency having money in a
sinking fund of, or surplus money in, its treasury not required for the
immediate needs of the local agency may invest any portion of the money
that it deems wise or expedient in those investments set forth below. A
local agency purchasing or obtaining any securities prescribed in this
section, in a negotiable, bearer, registered, or nonregistered format,
shall require delivery of the securities to the local agency, including
those purchased for the agency by financial advisors, consultants,'or
managers using the agency's funds, by book entry, physical delivery, or
by third party custodial agreement. The transfer of securities to the
counterparty bank's customer book entry account may be used for book
entry delivery. For purposes of this section "counterparty" means the
other party to the transaction.
A counterparty bank's trust department or separate safekeeping
department may be used for the physical delivery of the security if the
security is held in the name of the local agency. Where this section
does not specify a limitation on the term or remaining maturity at the
time of the investment, no investment shall be made in any security,
other than a security underlying a repurchase or reverse repurchase
agreement authorized by this section, that at the time of the investment
has a term remaining to maturity in excess of five years, unless the
legislative body has granted express authority to make that investment
either specifically or as a part of an investment program approved.by
the legislative body no less than three months prior to the investment:
(a) Bonds issued by the local agency, including bonds payable solely
out of the revenues from a revenue -producing property owned, controlled,
or operated by the local agency or by a department, board, agency, or
authority of the local agency.
(b).United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue -producing property owned, controlled, or operated by the state
or by a department, board, agency, or authority of the state.
(d) Bonds, notes, warrants, or other evidences of indebtedness of
any local agency within this state, including bonds payable solely out
of the revenues from a revenue -producing property owned, controlled, or
operated by the local agency, or by a department, board, agency, or
authority of the local agency.
(e) obligations issued by banks for cooperatives, federal land
banks, federal intermediate credit banks, federal home loan banks, the
Federal Home Loan Bank Board, the Tennessee Valley Authority, or in
obligations, participations, or other instruments of, or issued by, or
fully guaranteed as to principal and interest by, the Federal National
Mortgage Association; or in guaranteed portions of Small Business
CA SB 864 08/05/96 Page 5
Administration notes; or in obligations, participations, or other
instruments of, or issued by, a federal agency or a United States
government -sponsored enterprise.
(f) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances. Purchases of
bankers acceptances may not exceed 270 days maturity or 40 percent of
the agency's surplus money that may be invested pursuant to this
section. However, no more than 30 percent of the agency's surplus funds
may be invested in the bankers acceptances of any one commercial bank
pursuant to this section.
. This subdivision does not preclude a municipal utility district from
investing any surplus money in its treasury in any manner authorized by
the Municipal Utility District Act (.Division 6 (commencing with Section
11501) of the Public Utilities Code).
(g) Commercial paper of "prime" quality of the highest ranking or of
the highest letter and numerical rating as provided for by Moody's
Investors Service, Inc., or Standard and Poor's Corporation. Eligible
paper is further limited to issuing corporations that are organized and
operating within the United States and having total assets in excess of
five hundred million dollars ($500,000,000) and having an "A" or higher
rating for the issuer's debt, other than commercial paper, if any, as
provided for by Moody's Investors Service, Inc., or Standard and Poor's
Corporation. Purchases of eligible commercial paper may not exceed 180
days maturity nor represent more than 10 percent of the outstanding
paper of an issuing corporation. Purchases of commercial paper may not
exceed 15 percent of the agency's surplus money that may be invested
pursuant to this section. An additional 15 percent, or a total of 30
percent of the agency's surplus money, may be invested pursuant to this
subdivision. The additional 15 percent may be so invested only if the
dollar -weighted average maturity of the entire amount does not exceed 31
days. "Dollar -weighted average maturity" means the sum of the amount.of
each outstanding commercial paper investment multiplied by the number of
days to maturity, divided by the total amount of outstanding commercial
paper.
(h) Negotiable certificates of deposits issued by a nationally or
state -chartered bank or a state or federal association (as defined by
Section 5102 of the Financial Code) or by a state -licensed branch of a
foreign bank. Purchases of negotiable certificates of deposit may not
exceed 30 percent of the agency's surplus money which may be invested
pursuant to this section. For purposes of this section, negotiable
certificates of deposits do not come within Article 2 (commencing with
Section 53630), except that the amount so invested shall be subject to
the limitations of Section 53638.
(i) (1) Investments in repurchase agreements or reverse repurchase
agreements of any securities authorized by this section, as long as the
agreements are subject to this subdivision, including, the delivery
requirements specified in this section.
(2) Investments in repurchase agreements may be made, on any
investment authorized in this section, when the term of the agreement
does not exceed one year. The market value of securities that underlay
CA SB 864 08/05/96 Page 6
a repurchase agreement shall be valued at 102 percent or greater of the
funds borrowed against those securities and the value shall be adjusted
no less than quarterly.
(3) Reverse repurchase agreements may be utilized only when either
of the following conditions are met:
(A) The security was owned or specifically committed to purchase, by
the local agency, prior to December 31, 1994, and was sold using a
reverse repurchase agreement on December 31, 1994.
(B) The security to be sold on reverse repurchase agreement has been
owned and fully paid for by the local agency for a minimum of 30 days
prior to sale; the total of all reverse repurchase agreements on
investments owned by the local agency not purchased or committed to
purchase, prior to December 31, 1994, does not exceed 20 percent of the
base value of the portfolio; and the agreement does not exceed a term of
92 days, unless the agreement includes a written codicil guaranteeing a
minimum earning or spread for the entire period between the sale of a
security using a reverse repurchase agreement and the final maturity
date of the same security.
(4) After December 31, 1994, a reverse repurchase agreement may not
be entered into with securities not sold on a reverse repurchase
agreement and purchased, or committed to purchase, prior to that date,
as a means of financing or paying for the security sold on a reverse
repurchase agreement, but may only be entered into with securities owned
and previously paid for for a minimum of 30 days prior to the settlement
of the reverse repurchase agreement, in order to supplement the yield on
securities owned and previously paid for or to provide funds for the
immediate payment of a local agency obligation. Funds obtained or funds
within the pool of an equivalent amount to that obtained from selling a
security to a counterparty by way of a reverse repurchase agreement, on
securities originally purchased subsequent to December 31, 1994, shall
not be used to purchase another security with a maturity longer than 92
days from the initial settlement date of the reverse repurchase
agreement, unless the reverse repurchase agreement includes a written
codicil guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement and
the final maturity date of the same security. Reverse repurchase
agreements specified in subparagraph (B) of paragraph (3) may not be
entered into unless the percentage restrictions specified in that
subparagraph are met, including the total of any reverse repurchase
agreements specified in subparagraph (A) of paragraph ( 3) .
(5) Investments in reverse repurchase agreements or similar
investments in which the local agency sells securities prior to purchase
with a simultaneous agreement to repurchase the security, may only be
made upon prior approval of the governing body of the local agency and
shall only be made with primary dealers of the Federal Reserve Bank of
New York.
(6) (A) "Repurchase agreement" means a purchase of securities by the
local agency pursuant to an agreement by -which the counterparty seller
will repurchase the securities on or before.a specified date and for a
specified amount and the counterparty will deliver the underlying
CA SB 864 08/05/96 Page 7
securities to the local agency by book entry, physical delivery, or by
third party custodial agreement. The transfer of underlying securities
to the counterparty bank's customer book -entry account may be used for
book -entry delivery.
(B) "Securities," for purpose of repurchase under this subdivision,
means securities of the same issuer, description, issue date, and
maturity.
(C) "Reverse repurchase agreement" means a sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase the securities on or before a specified date and includes
other comparable agreements.
(D) For purposes of this section, the base value of the local
agency's pool portfolio shall be that dollar amount obtained by totaling.
all cash balances placed in the pool by all pool participants, excluding
any amounts obtained through selling securities by way of reverse
repurchase agreements or other similar borrowing methods.
(E) For purposes of this section, the spread is the difference
between the cost of funds obtained using the reverse repurchase
agreement -and the earnings obtained on the reinvestment of the funds.
(j) Medium -term notes of a maximum of five years maturity issued by
corporations organized and operating within the United States or by
depository institutions licensed by the United States or any state and
operating within the United States. Notes eligible for investment under
this subdivision shall be rated in a rating category of "A" or its
equivalent or better by a nationally recognized rating service.
Purchases of medium -term notes may not exceed 30 percent of the agency's
surplus money which may be invested pursuant to this section.
(k) (1) Shares of beneficial interest issued by diversified
management companies that invest in the securities and obligations as
authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or
(n) and that comply with the investment restrictions of this article and
Article 2 (commencing with Section 53630). However, notwithstanding
these restrictions, a counterparty to a reverse repurchase agreement is
not required to be a primary dealer of the Federal Reserve Bank of New
York if the company's board of directors finds that the counterparty
presents a minimal risk of default, and the value of the securities
underlying a repurchase agreement may be 100 percent of the sales price
if'the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management
companies that are money market funds registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.
Sec. 80a-1, et seq.).
(3) If investment is in shares issued pursuant to paragraph (1), the
company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical
rating provided by not less than two nationally recognized statistical
rating organizations.
CA SB 864 08/05/96 Page 8
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not less
than five years' experience investing in the securities and obligations
authorized by subdivisions (a) to (j), inclusive, or subdivisions (m) or
(n) and with assets under management in excess of five hundred million
dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2), the
company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical
rating provided by not less than two nationally recognized statistical
rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not less
than five years' experience managing money market mutual funds with
assets under management in excess of five hundred million dollars
($5001 000, 000) .
( 5 ) The purchase price of shares of beneficial interest purchased
pursuant to this subdivision shall not include any commission that the
companies may charge and shall not exceed 20 percent of the agency's
surplus money that may be invested pursuant to this section.
However, no more than 10 percent of the agency's surplus funds may
be invested in shares of beneficial interest of any one mutual fund
pursuant to paragraph (1).
(1) Notwithstanding anything to the contrary contained in this
section, Section 53635, or any other provision of law, moneys held by a
trustee or fiscal agent and pledged to the payment or security of bonds
or other indebtedness, or obligations under a lease, installment sale,
or other agreement of a local agency, or certificates of participation
in those bonds, indebtedness, or lease installment sale, or other
agreements, may be invested in accordance with the statutory provisions
governing the issuance of those bonds, indebtedness, or lease
installment sale, or other agreement, or to the extent not inconsistent
therewith or if there are no specific statutory provisions, in
accordance with the ordinance, resolution, indenture, or agreement of
the local agency providing for the issuance.
(m) Notes, bonds, or other obligations that are at all times secured
by a valid first priority security interest in securities of the types
listed by Section 53651 as eligible securities for the purpose of
securing local agency deposits having a market value at least equal to
that required by Section 53652 for the purpose of securing local agency
deposits. The securities serving as collateral shall be placed by
delivery or book entry into the custody of a trust company or the trust
department of a bank which is not affiliated with the issuer of the
secured obligation, and the security interest shall be perfected in
accordance with the requirements of the Uniform Commercial Code or
federal regulations. applicable to the types of securities in which the
security interest is granted.
CA SB 864 08/05/96 Page 9
(n) Any mortgage pass -through security, collateralized mortgage
obligation, mortgage -backed or other pay -through bond, equipment
lease -backed certificate, consumer receivable pass -through certificate,
or consumer receivable -backed bond of a maximum of five years maturity.
Securities eligible for investment under this subdivision shall be
issued by an issuer having an "A" or higher rating for the issuer's debt
as provided by a nationally recognized rating service and rated in a
rating category of "AA" or its equivalent or better by a nationally
recognized rating service. Purchase of securities authorized by this
subdivision may not exceed 20 percent of the agency's surplus money that
may be invested pursuant to this section.
SEC. 8. Section 53601.6 of the Government Code is amended to read:
53601.6. (a) A local agency shall not invest any funds pursuant to
this article in inverse floaters, range notes, or mortgage derived
interest -only strips.
(b) A local agency shall not invest any funds pursuant to this
article in any security that could result in zero interest accrual if
held to maturity. However, a local agency may hold prohibited
instruments until their maturity dates. The limitation in this
subdivision shall not apply to local agency investments in shares of
beneficial interest issued by diversified management companies
registered under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a-1, and following) that are authorized for investment pursuant to
subdivision (k) of Section 53601.
SEC. 9. Section 53635 of the Government Code is amended to read:
53635. As far as possible, all money belonging to, or in the
custody of, a local agency, including money paid to the treasurer or
other official to pay the principal, interest, or penalties of bonds,
shall be deposited for safekeeping in state or national banks, savings
associations or federal associations, credit unions, or federally
insured -industrial loan companies in this state selected by the
treasurer or other official having the legal custody of the money; or,
unless otherwise directed by the legislative body pursuant to Section
53601, may be invested in the investments set forth below. A local
agency purchasing or obtaining any securities described in this section,
in a negotiable, bearer, registered, or nonregistered format, shall
require delivery of all the securities to the local agency, including
those purchased for the agency by financial advisors, consultants, or
managers using the agency's funds, by book entry, physical delivery, or
by third -party custodial agreement. The transfer of securities to the
counterparty bank's customer book entry account may be used for
book -entry delivery. For purposes of this section, "counterparty" means
the other party to the transaction. A counterparty bank's trust
department or separate.safekeeping department may be used for the
physical delivery of the security if the security is held in the name of
the local agency.
(a) Bonds issued by the local agency, including bonds payable solely
out of the revenues from a revenue -producing property owned, controlled,
or operated by the local agency or by a department, board, agency, or
authority of the local agency.
CA SB 864 08/05/96 Page 10
(b) United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue -producing property owned, controlled, or operated by the state
or by a department, board, agency, or authority of the state.
(d) Bonds, notes, warrants, or other evidences of indebtedness of
any local agency within this state, including bonds payable solely out
of. the revenues from a revenue -producing property owned, controlled, or
operated by the local agency, or by a department, board, agency, or
authority of the local agency.
(e) Obligations issued by banks for cooperatives, federal land
banks, federal intermediate credit banks, federal home loan banks, the
Federal Home Loan Bank, the Tennessee Valley Authority, or in
obligations, participations, or other instruments of, or issued by, or
fully guaranteed as to principal and interest by, the Federal National
Mortgage Association; or in guaranteed portions of Small Business
Administration notes; or in obligations, participations, or other
instruments of, or issued by, a federal agency or a United States
government -sponsored enterprise.
(f) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances. Purchases of
bankers acceptances may not exceed 270 days maturity or 40 percent of
the agency's surplus funds which may be invested pursuant to this
section. However, no more than 30 percent of the agency's surplus funds
may be invested in the bankers acceptances of any one commercial bank
pursuant to this section.
This subdivision does not preclude a municipal utility district from
investing any surplus money in its treasury in any manner authorized by
the Municipal Utility District Act, Division 6 (commencing with Section
11501) of the Public Utilities Code.
(g) Commercial paper of !'prime" quality of the highest ranking or of
the highest letter and numerical rating as provided for by Moody's
Investors Service, Inc., or Standard and Poor's Corporation. Eligible
paper is further limited to issuing corporations that are organized and
operating within the United States and having total assets in excess of
five hundred million dollars ($500,000,000) and having an "A" or higher
rating for the issuer's debt, other than commercial paper, if any, as
provided for by Moody's Investors Service, Inc., or Standard and Poor's
Corporation. Purchases of eligible commercial paper may not exceed 180
days maturity nor represent more than 10 percent of the outstanding
paper of an issuing corporation. Purchases of commercial paper may not
exceed 15 percent of the agency's surplus money which may be invested
pursuant to this section. An additional 15 percent, or a total of 30
percent of the agency's money or money in its custody, may be invested
pursuant to this subdivision. The additional 15 percent may be so
invested only if the dollar -weighted average maturity of the entire
amount does not exceed 31 days. "Dollar -weighted average maturity"
CA SB 864 08/05/96 Page 11
means
of each outstanding
of days to maturity,
commercial paper.
the sum of the amount
commercial paper investment multiplied by the number
divided by the total amount of outstanding
(h) Negotiable certificates of deposit issued by a nationally or
state -chartered bank or a savings association or federal association or
a state or federal credit union or by a state -licensed branch of a
foreign bank. Purchases of negotiable certificates of deposit may not
exceed 30 percent of the agency's surplus money which may be invested
pursuant to this section. For purposes of this section, negotiable
certificates of deposit do not come within Article 2 (commencing with
Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5, except
that the amount so invested shall be subject to the limitations of
Section 53638. For purposes of this section, the legislative body of a
local agency and the treasurer or other official of the local agency
having legal custody of'the money are prohibited from depositing or
investing local agency funds, or funds in the custody of the local
agency, in negotiable certificates of deposit issued by a state or
federal credit union if a member of the legislative body of the local
agency, or an employee of the administrative officer, manager's office,
budget office, auditor -controller's office, or treasurer's office of the
local agency also serves on the board of directors, or any committee
appointed by the board of directors, or the credit committee or
supervisory committee of the state or federal credit union issuing the
negotiable certificates of deposit.
(i) (1) Investments in repurchase agreements or reverse repurchase
agreements of any securities authorized by this section, so long as the
agreements are subject to this subdivision, including the delivery
requirements specified in this section.
(2) Investments in repurchase agreements may be made, on any
investment authorized in this section, when the term of the agreement
does not exceed one year. The market value of securities that underlay
a repurchase agreement shall be valued at 102 percent or greater of the
funds borrowed against those securities and the value shall be adjusted
no less than quarterly.
(3) Reverse repurchase agreements may be utilized only when either
of the following conditions are met:
(A) The security was owned or specifically committed to purchase, by
the local agency, prior to repurchase agreement on December 31, 1994,
and was sold using a reverse repurchase agreement on December 31, 1994.
(B) The security to be sold on reverse repurchase agreement has been
owned and fully paid for by the local agency for a minimum of 30 days
prior to sale, the total of all reverse repurchase agreements on
investments owned by the local agency not purchased or committed to
purchase, prior to December 31, 1994, does not exceed 20 percent of the
base value of the portfolio, and the agreement does not exceed a term of
92 days, unless the agreement includes a written codicil guaranteeing a
minimum earning or spread for the entire period between the sale of a
Fecurity using a reverse repurchase agreement and the final maturity
date of the same security.
CA SB 864 08/05/96 Page 12
(4) After December 31, 1994, a reverse repurchase agreement may not
be entered into with securities not sold on a reverse repurchase
agreement and purchased, or committed to purchase, prior to that date,
as a means of financing or paying for the security sold on a reverse
repurchase agreement, but may only be entered into with securities owned
and previously paid for, for a minimum of 30 days prior to the
settlement of the reverse repurchase agreement, in order to supplement
the yield on securities owned and previously paid for or to provide
funds for the immediate payment of a local agency obligation. Funds
obtained or funds within the pool of an equivalent amount to that
obtained from selling a security to a counterparty by way of a reverse
repurchase agreement, on securities originally purchased subsequent to
December 31, 1994, shall not be used to purchase another security with a
maturity longer than 92 days from the initial settlement date of the
reverse repurchase agreement, unless the reverse repurchase agreement
includes a written codicil guaranteeing a minimum earning or spread for
the entire period between the sale of a security using a reverse
repurchase agreement and the final maturity date of the same security.
Reverse repurchase agreements specified in subparagraph (B) of paragraph
(3) may not be entered into unless the percentage restrictions specified
in that subparagraph are met, including the total of any reverse
repurchase agreements specified in subparagraph (A) of paragraph (3).
(5) Investments in reverse repurchase agreements or similar
investments in which the local agency sells securities prior to purchase
with a simultaneous agreement to repurchase the security, may only be
made upon prior approval of the governing body of the local agency and
shall only be made with primary dealers of the Federal Reserve Bank of
New York.
(6) (A) "Repurchase agreement" means a purchase of securities by the
local agency pursuant to an agreement by which the counterparty seller
will repurchase the securities on or before a specified date and for a
specified amount and the counterparty will deliver the underlying
securities to the local agency by book entry, physical delivery, or by
third party custodial agreement. The transfer of underlying securities
to the counterparty bank's customer book -entry account may be used for
book -entry delivery.
(B) "Securities," for purpose of repurchase under this subdivision,
means securities of the same issuer, description, issue date, and
maturity.
(C) "Reverse repurchase agreement" means a sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase the securities on or before a specified date, and includes
other comparable agreements.
(D) For purposes of this section, the base value of the local
agency's pool portfolio shall be that dollar amount obtained by totaling
all cash balances placed in the pool by all pool participants, excluding
any amounts obtained through selling securities by way of reverse
repurchase agreements or other similar borrowing methods.
(E) For purposes of this section, the spread is the difference
CA SB 864 08/05/96 Page 13
between the cost of funds obtained using the reverse repurchase
agreement and the earnings obtained on the reinvestment of the funds.
(j) Medium -term notes of a maximum of five years' maturity issued by
corporations organized and operating within the United States or by
depository institutions licensed by the United States or any state and
operating within the United States. Notes eligible for investment under
this subdivision shall be rated in a rating category of "A." or its
equivalent or better by a nationally recognized rating service.
Purchases of medium -term notes may not exceed 30 percent of the agency's
surplus money which may be invested pursuant to this section.
(k) (1) Shares of beneficial interest issued by diversified
management companies that invest in the securities and obligations as
authorized by subdivisions (a) to (j), inclusive, or subdivisions (1) or
(m) and that comply with the investment restrictions of this article and
Article 2 (commencing with Section 53630). However, notwithstanding
these restrictions, a counterparty to a reverse repurchase agreement is
not required to be a primary dealer of the Federal Reserve Bank of New
York if the company's board of directors finds that the counterparty
presents a minimal risk of default, and the value of the securities
underlying a repurchase agreement may be 100 percent of the sales price
if the securities are marked to market daily.
(2) Shares of beneficial interest issued by diversified management
companies that are money market funds registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.
Sec 80a-1, et seq.).
(3) If investment is in shares issued pursuant to paragraph (1), the
company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical
rating provided by not less than two nationally recognized statistical
rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not less
than five years' experience investing in the securities and obligations
authorized by subdivisions (a) to (j), inclusive, or subdivisions (1) or
(m) and with assets under management in excess of five hundred million
dollars ($500, 000, 000) .
(4) If investment is in shares issued pursuant to paragraph (2), the
company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and numerical
rating provided by not less than two nationally recognized statistical
rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not less
than.five years' experience managing money market mutual funds with
assets under management in excess of five hundred million dollars
($500, 000, 000) .
CA SB 864 08/05/96 Page 14
(5) The purchase price of shares of beneficial interest purchased
pursuant to this subdivision shall not include any commission that the
companies may charge and shall not exceed 20 percent of the agency's
surplus money that may be invested pursuant to this section.
However, no more than 10 percent of the agency's surplus funds may
be invested in shares of beneficial interest of any one mutual fund
pursuant to paragraph (1).
(1) Notes, bonds, or other obligations which are at all times
secured by a valid first priority security interest in securities of the
types listed by Section 53651 as eligible securities for the purpose of
securing local agency deposits having a market value at least equal to
that required by Section 53652 for the purpose of securing local agency
deposits. The securities serving as collateral shall be placed by
delivery or book entry into the custody of a trust company or the trust
department of a bank which is not affiliated with the issuer of the
secured obligation, and the security interest shall be perfected in
accordance with the requirements of the Uniform Commercial Code or
federal regulations applicable to the types of securities in which the
security interest is granted.
(m) Any mortgage pass -through security, collateralized mortgage
obligation, mortgage -backed or other pay -through bond, equipment
lease -backed certificate, consumer receivable pass -through certificate,
or consumer receivable -backed bond of a maximum of five years maturity.
Securities eligible for investment under this subdivision shall be
issued by an issuer having an "A" or higher rating for the issuer's debt
as provided by a nationally recognized rating service and rated in a
rating category of "AA" or its equivalent or better by a nationally
recognized rating service. Purchase of securities authorized by this
subdivision may not exceed 20 percent of the agency's surplus money that
may be invested pursuant to this section.
SEC. 10. Section 53646 of the Government Code is amended to read:
53646. (a) The treasurer or chief fiscal officer shall annually
render to the legislative body of the local agency and any oversight
committee a statement of investment policy, which the legislative body
of the local agency shall consider at a public meeting. Any changes in
the policy shall also'be considered by the legislative body of the local
agency at a public meeting.
(b) (1) The treasurer or chief fiscal officer shall render a
quarterly report to the chief executive officer, the internal auditor,
and the legislative body of the local agency. The quarterly report
shall be so submitted within 30 days following the end of the quarter
covered by the report. Except as provided in subdivision (e),.this
report shall include the type of investment, issuer, date of maturity
par and dollar amount invested on all securities, investments and moneys
held by the local agency, and shall additionally include a description
of any of the local agency's funds, investments, or programs, that are
under the management of contracted parties, including lending programs.
With respect to all securities held by the local agency, and under
management of any outside party that is not also a local agency or the
•State of California Local Agency Investment Fund, the report shall also
CA SB 864 08/05/96 Page 15
include a current market value as of the date of the report, and shall
include the source of this same valuation.
(2) The quarterly report shall state compliance of the portfolio to
the statement of investment policy, or manner in which the portfolio is
not in compliance.
(3) The quarterly report shall include a statement denoting the
ability of the local agency to meet its pool's expenditure requirements
for the next six months, or provide an explanation as to why sufficient
money shall, or may, not be available.
(4) In the quarterly report, a subsidiary ledger of investments may
be used in accordance with accepted accounting practices.
(c) Pursuant to subdivision (b), the treasurer or chief fiscal
officer shall report whatever additional information or data may be
required by the legislative body of the local agency.
(d) The legislative body of a local agency may elect to require the
report specified in subdivision (b) to be made on a monthly basis
instead of quarterly.
(e) For local agency investments that have been placed in the Local
Agency Investment Fund, created by Section 16429.1, in Federal Deposit
Insurance Corporation -insured accounts in a bank or savings and loan
association, in a county investment pool, or any combination of these,
the treasurer or chief fiscal officer may supply to the governing body,
chief executive officer, and the auditor of the local agency the most
recent statement or statements received by the local agency from these
institutions in lieu of the information required by paragraph (1) of
subdivision (b) regarding investments in these institutions.
SEC. 11. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the meaning
of Article IV of the Constitution and shall go into immediate effect.
The facts constituting the necessity are:
In order for local governmental agencies to comply with recent
changes in investment criteria applicable to local governments and
permit orderly effective investments by these agencies, it is necessary
that this act take effect immediately.
END OF REPORT
OF TNti
INVESTMENT ADVISORY BOARD Correspondence & Written Material Item D
Meeting Date: September 11, 1996
TITLE:
LAIF Pooled Money Investment Board
Report - June 30, 1996
BACKGROUND:
Attached please find the LAIF Pooled Money Investment Board Report for June 30 P m 1996.
RECOMMENDATION:
Informational Item - No recommended action.
J n r.�FLalconer, Fi ance Director
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
DUNE 1996
Table of Contents
SUMMARY........................................................................................................1
SELECTED INVESTMENT DATA.................................................................2
INVESTMENT TRANSACTIONS...................................................................3
TIMEDEPOSITS............................................................................................15
DEMAND BANK DEPOSITS.........................................................................17
POOLED MONEY INVESTMENT BOARD DESIGNATION .....................18
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF DUNE 1996 WITH JUNE 1995
(Dollars in Thousands)
:>:::::
> > .<><>
.................
::..khan e................::.
Average Daily Portfolio
$27,531,289
$28,389,274
- $857,985
Accrued Earnings
$125,205
$139,935
- $14,730
Effective Yield
5.548
5.997
- .449
Average Life --Month End (in days)
274
298
- 24
Total Security Transactions
Amount
$15,839,124
$33,523 817
-$17,684,693
Number
369
782
- 413
Total Time Deposit Transactions
Amount
$76,500
$40,600
+ 35,900
Number
11
14
- 3
Average Workday Investment Activity
$795,781
$1,525,655
- $729,874
Prescribed Demand Account Balances
For Services
$127,474
$145,588
- $18,114
For Uncollected Funds
$172,654
$175,237
- $2,583
—1—
MATT FONG
STATE TREASURER
STATE OF CALIFORNIA
INWESTMENT DIVISION
SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED)
Change in
June 30,1996 Percent From
Type of Security Amount Percent Previous Month
Governments
Bills
2,340,375
8.74
-
.90
Bonds
0
0
0
Notes
51,781,010
21.59
+
1.12
Strips
3841,016
1.43
+
.04
Total Governments
89505,401
31.76
+
.26
Federal Agency Coupons
191349617
4.24
+
.33
Certificates of Deposit
54099165
19.45
+
1.10
Bank Notes
19240,097
4.63
-
.12
Bankers Acceptances
5779,408
2.16
+
.29
Repurchases
0
0
0
Federal Agency Discount Notes
4501,655
1.68
-
1.36
Time Deposits
446,995
1.67
+
.09
GNMA's
41,334
.02
0
Commercial Paper
59,9919749
22.37
-
2.72
FHLMC
35,084
.13
0
Corporate Bonds
21,0199,109
7.54
+
.69
Pooled Loans
111479295
4.28
+
.38
GF Loans
19440
.07
-
.43
Other
0
0
0
Reversed Repurchases
0
0
-
1.49
Total, All Types
$269,7819149
100
INVESTMENT ACTIVITY
June 1996
May 1996
Number
Amount
Number
Amount
Pooled Money
369
$ 15,839,124
403
$ 16,342,438
Other
0
0
17
$ 201,163
Time Deposits
11
$ 76,500
25
$ 109,700
TOTALS
380
$ 15,9159624
445
$ 16,653,301
PMIA Monthly Average
Effective Yield
5.548
5.502
Year to Date Yield for
Last Day of Month
5.706
5.720
-2-
06/03/96 REDEMPTION
BA
Union
06/03/96
BA
Union
06/03/96
CD
Soc Gen
5.360%
06/03/96
CD
Soc Gen
5.360%
06/03/96
CD
BNParis
5.380%
06/03/96
CD
BNParis
5.180%
06/03/96
CD
CommerzBk
5.180%
06/03/96
CD
CommerzBk
5.180%
06/03/96
CD
RB Canada
5.350%
06/03/96
CD
RB Canada
5.350%
06/03/96
CD
RB Canada
5.350%
06/03/96
CP
GMAC
06/03/96
CP
GMAC
06/03/96
CP
GMAC
06/03/96
CP
GECC
06/03/96
CP
GECC
06/03/96
CP
Hertz
06/03/96
PURCHASE
Treas
Notes
6.000%
05/31/98
Treas
Notes
6.000%
05/31/98
CP
Assoc
06/04/96
CP
Assoc
06/04/96
CP
Assoc
06/04/96
CP
Assoc
06/04/96
06/04/96 REDEMPTION
5.260
$10,000
46
67,211.11
5.369
5.210
5,500
81
64,473.75
5.345
5.350
50,000
60
445,906.49
5.425
5.350
50,000
60
445,906.49
5.425
5.340
25,000
61
226,290.53
5.415
5.180
25,000
89
320,380.20
5.255
5.050
25,000
118
414,227.20
5.123
5.080
19,000
119
319,291.34
5.152
5.340
34,000
145
731,844.11
5.418
5.340
65,000
145
1,398,096.79
5.414
5.340
76,000
146
1,646,929.66
5.417
5.340
10,000
73
108,283.33
5.473
5.340
50,000
73
541,416.67
5.473
5.340
50,000
73
541,416.67
5.473
5.000
50,000
118
819,444.44
5.153
5.000
50,000
118
819,444.44
5.153
5.030
28,000
123
481,203.33
5.189
6.270
50,000
6.270
50,000
5.380
26,000
5.380
26,000
5.380
26,000
5.380
50,000
CP
Assoc
06/04/96
5.380
26,000
1
3,885.56
5.455
CP
Assoc
06/04/96
5.380
50,000
1
7,472.22
5.455
CP
Assoc
06/04/96
5.380
50,000
1
7,472.22
5.455
CP
Assoc
06/04/96
5.380
50,000
1
7,472.22
5.455
06/05/96 REDEMPTION
CP
Amer Exp
06/05/96
5.300
25,000 5
18,402.78
5.377
CP
Amer Exp
06/05/96
5.300
50,000 5
36,805.56
5.377
CP
Amer Exp
06/05/96
5.300
50,000 5
36,805.56
5.377
MTN
Sec Pac
9.360% 06/05/96
5.700
2,000 155
49,420.00
5.732
—3—
06/05/96 PURCHASE
CID
CID
CID
CP
CID
CID
06/06/96 RRS
Assoc
06/06/96
5.420
25,000
Assoc
06/06/96
5.420
50,000
Amer Exp
06/10/96
5.250
30,000
Amer EXp
06/10/96
5.250
50,000
Amer Exp
06/11/96
5.250
30,000
Amer Exp
06/11 /96
5.250
50,000
Treas
Bills
05/29/97
Treas
Bills
05/29/97
Treas
Notes
6.000%
05/31 /98
Treas
Notes
6.000%
05/31/98
REDEMPTION
CD
CommerzBk
5.080%
06/06/96
CID
Assoc
06/06/96
CID
Assoc
06/05/96
CID
Heller
06/06/96
CID
Bkrs Trst
06/06/96
CID
Bkrs Trst
06/06/96
CID
Lehman
06/06/96
Disc Note
FHLMC
06/06/96
Disc Note
FHLMC
06/06/96
PURCHASE
CD
CommerzBk
5.280%
06/27/96
CD
CommerzBk
5.280%
06/27/96
CD
Montreal
5.270%
06/28/96
CD
Montreal
5.270%
06/28/96
BA
B/A
10/25/96
BA
B/A
10/28/96
CD
BNParis
5.390%
09/30/96
CD
BNParis
5.420%
10/01 /96
CD
Midland
5.410%
10/09/96
CID
GECC
10/08/96
Treas
Notes
6.000%
05/31 /98
4.980
50,000
4.980
50,000
4.980
50,000
4.980
50,000
5.030
10,000
112
156,708.53
5.106
5.420
25,000
1
3,763.89
5.496
5.420
50,000
1
7,527.78
5.496
5.430
50,000
42
316,750.00
5.540
5.120
25,000
92
327,111.11
5.259
5.120
50,000
92
654,222.22
5.259
5.100
50,000
121
857,083.33
5.261
5.050
50,000
91
638,263.90
5.186
5.050
50,000
91
638,263.90
5.186
5.260
50,000
5.260
50,000
5.270
50,000
5.270
50,000
5.310
15,000
5.310
18,000
5.380
50,000
5.410
50,000
5.410
50,000
5.360
50,000
6.139
40,000
—4—
CD
CD
Soc Gen
Soc Gen
5.300% 06/28/96 5.300
50,000
5.300% 06/28/96 5.300
50,000
06/14/96 PURCHASE
CID
CID
Merrill
Merrill50,000
07/01/96 5.350
CID.
Merrill
07/01/96 5350
50,000
CID
Merrill
07/01/96 5.350
50,000
07/01/96 5.350
20,000
06/17/96 PURCHASE
MTN
BA
IBM Corp.
Union
6.000% 06/17/97 6.000
50,000
BA
Union
08/28/96 5.330
15,000
BA
B/q
08/30/96 5.330
14,300
BA
Montreal
09/11/96 5.360
7,000
BA
B/q
10/04/96 5.400
10,000
BA
Montreal
10/11/96 5.360
6,000
CD
BNParis
10/25/96 5.400
5.580% 11/08/96 5.560
15,000
CD
CID
BNParis
Assoc50,000
5.580% 11/08/96 5.560
50,000
CID
Ass
Assoc
5.470
50,000
CID
Assoc
06/18/96 5.470
50, 000
CID
Assoc
06/18/96 5.470
50,000
CID
Textron
06/18/96 5.470
50,000
CID
Lehman
07/15/96 5.520
25,000
CID
Lehman
09/26/96 5.450
50,000
CID09/26/96
GMAC
5.450
50,000
CID
Merrill11/08/96
10/04/96 5.420
40,000
CID
Merrill
11/08/96 5.480
CID
Merrill
11/08/96 5.480
50,000
CID
GECC
11/08/96 5.480
50,000
CID
GECC
11/25/96 5.480
50,000
CID
GECC
11/25/96 5.480
50,000
CID
GECC
11/25/96 5.480
50,000
11/25/96 5.480
50,000
06/18/96 REDEMPTIONS
CID
CID
Assoc
Assoc50,000
06/18/96 5.470
1
7,597.22
CID
Assoc
Assoc
5.470
06/18/96 5.470
50000
,1
5.546
7,597.22 5.546
CID
Assoc50,000
06/18/96 5.470
1
50,000
7,597.22 5.546
1
7,597.22 5.546
06/07/96 REDEMPTION
BA
Montreal
06/07/96
5.230
25,000
49
177,965.28
658,165.33
5.340
5.222
CD
ABN Amro
5.160%
06/07/96
5.150
5
50,000
25,000
93
331,329.40
5.201
CD
CommerzBk
5.150%
06/07/96
.150
5.340
12
156
391,758.39
5.106
CD
DeutschBk
5.070%
06/07/96
06/07/96
5.
50,000
415,333.33
5.459
Cp
Assoc
06/07/96
5.340
50,000
56
415,333.33
5.459
5.266
CID
Assoc
06/07/96
5.120
100,000
100
1,422,222.22
C p
Assoc
PURCHASE
BN
NBDetroit
5.350%
08/07/96
5.420
15,000
50,000
BN
NBDetroit
5.350%
08/07/96
5.420
5.420
50,000
BN
Nations
5.420%
5.600%
08/07/96
11/08/96
5.600
50,000
BN
CD
Fst Chicago
CommerzBk
5.390%
09/09%96
Cp
Travelers
06/10/96
5.250
40,000
CID
Salomon
07/01/96
5.400
20,000
CID
Salomon
07/29/96
5.450
50,000
06/10196 REDEMPTION
BN
Fst Chicago
5.310%
06/10/96
5.300
000
50'000
151
151
111,573.39
1,111,573.39
5.373
5.373
BN
Fst Chicago
5.310%
06/10/96
5.320
5 50,000
116
809,578.33
5.094
CD
Deutsche
5.070%
06/10/96
5:020
5
50; 00
117
816,445.63
5.093
CD
CommerzBk
5.070%
06/10/96
5.250
30,000
5
21,875.00
5.326
CID
Amer Exp
06/10/96
06/10/96
5.250
50,000
5
36,458.33
5.326
CID
Amer Exp
06/10/96
5.250
40,000
3
17,500.00
5.325
Cp
Travelers
06/11/96 REDEMPTION
CD
BNParis
5.380% 06/11/96
5.250
20,000
66
178,368.58
26,250.00
5.425
5.327
CID
Amer Exp
06/11 /96
5
5.250
30,000
50,000
6
43,750.00
5.327
CID
Amer Exp
06/11/96
06/11 /96
5.330
29,400
39
169,760.51
5.435
CID
Countrywide
PURCHASE
MTN
IBM Credit
06/11/97 6.870
50,000
06/12/96 RRS
Treas
Notes
6.000% 05/31 /98 4.800
50,000
Treas
Notes
6.000%
05/31/98 4.800
50,000
—5—
BN
BN
Nations
Nations
5.430%
09/26/96
5.430
50,000
CD
RaboBank
5.430%
5.460%
09/26/96
09/11/96
5.430
50,000
CD
CD
US Oregon
Deutsche
5.400%
09/26/96
5.420
5.400
50,000
CD
BNParis
°
5.420 /0
5.550%
09/30/96
11/20/96
5 420
35,000
35,000
CD
CD
BNParis
RB Canada
5.550%
11/20/96
5.540
5.540
15,000
50,000
CD
RB Canada
5.540%
5.520%
11/20/96
11/20/96
5.520
50,000
CP
CP
Assoc
Assoc
06/19/96
5.520
5.330
50,000
50,000
CP
Assoc
06/19/96
5.330
50,000
CP
Smith Barn
06/19/96
5.330
50,000
CP
Smith Barn
07/01/96
07/01/96
5.360
50,000
5.360
50,000
06/19/96 REDEMPTION
CP
CP
Assoc
Assoc
06/19/96
5.330
50,000 1
CP
Assoc
06/19/96
5.330
50,000 1
7,402.78
5.404
MTN (FR)
B/A
5.084%
06/19/96
09/02/97
5.330
5.084
50,000 1
7,402.78
7,402.78
5.404
5.404
PURCHASE
25,000 658
2,659,316.79
5.900
CD
CD
Nat W.Mstr
Soc Gen
5.400%
08/14/96
5.400
10,000
CD
RaboBank
5.480%
0
5.460 /0
09/05/96
09/11/96
5.440
CD
CD
Dresdner
5.500%
10/22/96
5.430
5.500
15,000
5,000
25,000
CP
Mellon
GECC
5.500%
11/08/96
5.500
48,000
CID
GECC
06/20/96
5.500
50,000
CP
GECC
06/20/96
5.500
50,000
CID
GECC
06/20/96
5.500
50,000
CP
GMAC
06/20/96
5.500
50,000
CP
B/A
07/12/96
5.400
50,000
09/26/96
5.390
50,000
06/20/96 REDEMPTION
CP GECC
CP GECC
06/20/96
5.500
CP GECC
06/20/96
5.500
CP GECC
06/20/96
5.500
06/20/96
5.500
50,000 1
50,000
7,638.89
5.577
1
50,000 1
7,638.89
5.577
50,000 1
7,638.89
5.577
7,638.89
5.577
—7—
06/20/96 PURCHASE
BN
Nations
5.430%
09/27/96
5.430
50,000
50,000
BN
Nations
5.430%
5.430%
09/27/96
08/08/96
5.430
5.430
100,000
CD
CD
Sanwa
US Oregon
5.350%
08/13/96
5.350
50,000
40,000
CD
CommerzBk
5.430%
08/14/96
06/21/96
5.370
5.370
50,000
CID
Assoc
06/21/96
5.370
50,000
CID
Assoc
07/12/96
5.430
50,000
CID
Heller
08/02/96
5.540
16,112
CID
Textron
09/03/96
5.450
25,000
CID
Lehman
10/01/96
5.380
50,000
CID
FMCC
10/01 /96
5.380
50,000
CID
FMCC
10/28/96
5.440
50,000
CP
SRAC
06l21/96 REDEMPTION
Assoc
06/21/96
5.370
50,000
1
1
7,458.33
7,458.33
5.445
5.445
CID
CP
Assoc
06/21/96
5.370
50,000
50,000
70
518,194.44
5.460
CP
TransAm
06121 /96
5.330
6.116
0,000
702
6,464,729.17
6.769
MTN
GMAC
6.375%
06/21/96
06/21/96
6.116
25,0 0
731
3,058,000.00
6.117
MTN
AT&T
6.116%
PURCHASE
MTN
SCA Edison
5.450%
06/11�98
6.570
26,600
MTN
GMAC
6.375%
6.960%
09/0
04/27/988
5,000
MTN
MTN
TransAm
Chrysler
6.750%
�9�16/96
6.50018
10,000
gq
Chase
5.450%
11/01/96
5.390
8,170
CD
Deutsche
08/21 / 96
5.380
50,000
CID
Assoc
08/21 /96
5.380
50,000
CP
Assoc
10/04/96
5.420
50,000
CP
Hertz
FMCC
10/08/96
5.410
50,000
CID
FMCC
10/08/96
5.410
50,000
CID
CP
FMCC
10/08/96
5.410
50,000
CID
FMCC
10/09/96
5.410
50,000
CID
FMCC
10/09/96
5.410
50,000
50,000
CID
FMCC
10/09/96
01/20/96
5.410
5.470
50,000
CP
Bkrs Trst
11/20/96
5.470
50,000
CID
Bkrs Trst
11/20/96
5.450
50,000
CID
SRAC
11/20/96
5.450
50,000
CID
GECC
11/20/96
5.450
50,000
CP
GECC
11/20/96
5.450
50,000
CP
GECC
01 /20196
5.450
50,000
CP
GECC
—8—
CD
CD
Cr Agricole
Cr Swiss
5.430% 09/26/96 5.410
50,000
CD
Dresdner
5.430% 09/26/96 5.410
5510%
50,000
CD
Rabo Bank
. 11/06/96 5.490
5.510% 11/25/96
90,000
CID
CID
Assoc
Assoc
5.500
06/26/96 5.180
40,000
50,000
CID
Assoc
06/26/96 5.180
50,000
CID
Assoc
06/26/96 5.180
50,000
CID
FMCC
06/26/96 5.180
50,000
CID
FMCC
09/26/96 5.400
50,000
CD
Cr Swiss
09/26/96 5.400
5.590% 12✓20/96 5.240
50,000
62,000
06/26/96 SALE c/
CD
Cr Swiss
5.590% 12/20/96 5.240
62,000
REDEMPTION
1
8,733.33
5.312
CID
CID
Assoc
Assoc
06/26/96 5.180
50,000
1
CID
Assoc
06/26/96 5.180
50,000
1
7,194.44
7,194.44
5.252
CCID.
CID
Assoc
06/26/96 5180
06/26/96 5.180
50,000
1
7,194.44
5.252
5.252
CID
GECC
GECC50,000
06/26/96 5.310
50,000
1
75
7,194.44
5.252
06/26/96 5.310
10,000
75
553,125.00
5.443
PURCHASE
110,625.00
5.443
MTN
CID
GMAC
GMAC15,000
5.250% 01/23/98 6.490
CID
GMAC
11/25/96 5.530
20,000
11/25/96 5.530
21,000
06/27/96 REDEMPTION
CD
CD
CommerzBk
CommerzBk
5.280% 06/27/96 5.260
5.280% 06/27/96
50,000
21
153,418.45
5.333
CID
CID
GECC06/27/96
GECC
5.260
5.280
50,000
10,000
21
44
153,418.45
5.333
CID
Conagra
06/27/96 5.280
06/27/96
50,000
44
64,533.33
322,666.67
5.388
5.388
CID
Treas
Conagra
Bills
5.420
06/27/96 5.420
50,000
50,000
63
474,250.00
5.547
Treas
Bills
07/25/96 4 .750
5,000
63
331
474,250.00
249,281.95
5.547
Treas
Bills
07/25/96 4.750
07/25/96 4.750
50,000
324
2,414,944.45
5.808
5.739
RRP
50,000
324
2,414,944.45
5.739
Treas
Bills
Treas
Bills
05/29/97 4.980
05/29/97 4.980
50,000
21
(137,406.50)
-5.049
50,000
21
(137,406.50)
-5.049
—10—
06/24/96 SALE
Bills
07/25/96
4.815
50,000 328
2,470,229.15 5.808
Treas
Treas
Bills
07/25/96
4.815
50,000 328
50,000 328
2,470,229.15 5 808
Treas
Bills
07/25/96
4.815
PURCHASE
MTN
TransAm
6.490%
08/15/97
6.251
6.410
5,000
8,350
CB
Chase
6.625%
6.300%
01/15/98
06/04/98
6.590
8,000
MTN
GMAC
GMAC
6.125%
09/18/98
6.630
10,000
MTN
FHLB
5.865%
06/24/97
6.000
50,000
CD
Montreal
5.440%
10/01 /96
5.440
50,000
50,000
CD
Montreal
5.440%
96
07�22/96
5.440
5.300
10,000
BA
BN
B/A
FNB Chicago
5.540%
10/11/96
5.510
0,000
40,000
CD
Barclays
5.460%
5.460%
11/08/96
11/08/96
5.450
5.450
50,000
CD
Barclays
Barclays
5.460%
11/08/96
5.450
50,000
CD
CD
Barclays
5.460%
11/08/96
5.450
50,000
50,000
CD
Bkrs Trst
5.530%
5.530%
11/25/96
11/25/96
5.520
5.520
50,000
CD
Bkrs Trst
Bkrs Trst
5.530%
11/25/96
5.520
50,000
CD
CD
Cr Agricole
5.550%
11/25/96
5.530
50,000
50,000
CD
Cr Agricole
5.550%
11/25/96
5.530
5.530
50,000
CD
Cr Agricole
5.550%
5.550%
11 /26�96
11 /2
5.530
50,000
CD
Cr Agricole
11/08/96
5.410
50,000
CP
Assoc
11/08/96
5.410
50,000
CP
Assoc
11/12/96
5.410
15,000
CP
Assoc
11 /12/96
5.410
50,000
CP
Assoc
11 /26/96
5.350
25,000
Disc Notes FNMA
11/26/96
5.350
25,000
Disc Notes FNMA
Cr Swiss
5.590% 12/20/96
5.300
51,000
CD
06/25/96 SALE c/
5.590% 12/20/96 5.300
51,000 1
7,361.11 5.373
} CD
Cr Swiss
1=
FR SBA 5.875% 06/25/21 810
5.
FR 5,156
SBA 5.875% 06/25/21 5.875 5,380
06/28/96 SALE
Tress
Tress
Bills
Bills
07/25/96 4.730
07/25/96 4.730
30,000
324
106,425.00 5.753
50,000
324
177,375.00 5.753
REDEMPTION
BA
BN
B/A
Fst Chicago
06/28/96
5.320% 06/28/96
5.000
5.320
13,500
164
212,888.89
5.151
BN
BN
Fst Chicago
5.320% 06/28/96
5.320
50,000
50,000
472,888.89
5.393
BN
B/A
B/A
5.310% 06/28/96
5.32
64
70
472,888.89
5.393
BN
B/A
5.310%
06/28/96
5.310
50,000
70
516,250.00
5.383
BN
B/A
5:310%
06/28/96
5.310
50,000
70
516,250.00
5.383
BN
B/A
5.310%
5.310%
06/28/96
06/28/96
5.310
50,000
70
516,250.00
516,250.00
5.383
5.383
BN
CD
B/A
5.230%
06/28/96
5.310
5.220
50,000
70
516,250.00
5.383
CD
US BK Wash
5.249%
06/28/96
5.240
25,000
129
5.312
CD
US BK Wash
US BK Wash
5.240%
5.240%
06/28/96
5.240
50,000
29
10561,898.642778
105,527.78
211,055.56
5.312
CD
US BK Wash
5.240%
06/28/96
06/28/96
5.240
5.240
50,000
29
211,055.56
5.312
5.312
CD
CD
Hong Kong
5.300%
06/28/96
5.300
50,000
50,000
29
211,055.56
5.312
CD
Midland
Midland
5.300%
06/28/96
5.300
50,000
64
64
471,111.11
5.373
CD
BNParis
5.300%
5.320%
06/28/96
06/28/96
5.300
50,000
64
471,111.11
471,111.11
5. 373
5.373
CD
CD
CIBC
5.310%
06/28/96
5.310
5.310
50,000
50,000
64
472,008.31
5.383
CD
Tokyo-Mits
CIBC
5.400%
06/28/96
5.400
110,000
70
70
516
5.383
CD
CIBC
5.310%
06/28/96
5.310
50,000
72
155,000.00
1,55,0.00
5.383
CD
US Oregon
5.310%
5.300%
06/28/96
06/28/96
5.310
50,000
72
531,000.00
531,000.00
5.383
5.383
CD
CD
US Oregon
5.300%
06/28/96
5.300
5.300
50,000
50,000
72
530,000.00
5.373
CD
CR Suisse
Hong Kong
5.310%
5.340%
06/28/96
5.300
50,000
72
530,000.00
530,010.49
5.373
CD
Hong Kong
5.340%
06/28/96
06/28/96
5.340
5.340
50,000
85
630,416.67
5.373
5.414
CD
CD
Hong Kong
5.340%
06/28/96
5.340
50,000
50,000
85
630,416.67
5.414
CD
Bk Cal
Union
5.420%
06/28/96
5.420
50,000
85
100
630,416.67
5.414
CD
CommerzBk
5.370%
5.250%
06/28/96
06/28/96
5.370
45,000
101
752,777.78
677,962.50
5.495
5.444
CID
CID
Salomon
06/28/96
5.070
5.450
29,000
40,000
148
605,067.54
5.141
CID
Amer Exp
Merrill
06/28/96
5.280
50,000
28
44
169,555.56
5.549
CP
Merrill
06/28/96
5.300
50,000
64
322,666.67
471,111.10
5.388
CID
Merrill
06/28/96
06/28/96
5.300
5300
50, 000
64
471,111.10
5.424
5.424
CCID.
CID
Merrill
06/28/96
5.300
50,000
50,000
64
471,111.10
5.424
CID
FMCC
FMCC
06/28/96
5.280
50,000
64
70
471,111.10
513,333.33
5.424
CID
Chase
06/28/96
06/28/96
5.280
5.320
50,000
70
513,333.33
5.408
5.408
50,000
73
539,388.89 5.452
-11-
06/28/96 REDEMPTION
CP
Chase
06/28/96 5.320
50,000
73
73
539,388.89 5.452
CP
Chase
06/28/96 5.320
5.300
50,000
50,000
73
537,361.11
CP
Assoc
06/28/96
06/28/96
5.310
3,000
74
00
5.431
CID
Trst
06/28/96
5.310
50,000
74
CP
Bkrs Trst
06/28/96
5.330
20,000
74
219,122.22
5.463
CP
Merrill
06/28/96
5.330
50,000
74
547,805.56
5.463
CID
Merrill
06/28/96
5.330
50,000
74
547,805.56
5.463
CID
Merrill
06/28/96
5.300
50,000
74
544,722.22
5.432
CP
Amer Exp
06/28/96
5.300
50,000
74
544,722.22
5.432
CP
Amer Exp
06/28/96
5.250
25,000
85
CP
FMCC
06/28/96
5.250
50,000
85
9,791.67
19,
61
5.389
CID
FMCC
06/28/96
5.410
50,000
86
638,680.56
$ 277.78
CID
Heller
06/28/96
5.260
50,000
8
5.400
CID
Chase
06/28/96
5.260
50,000
86
628,277.78
5.400
CP
Chase
06/28/96
5.250
50,000
86
627,083.33
5.390CP
Amer Exp
06/28/96
5.250
50,000
86
627,083.33
5.390
CID
Amer Exp
06/28/96
5.250
50,000
86
627,083.33
5.390
CID
Amer Exp
06/28/96
5.250
50,000
86
627,083.33
5.390
CP
Amer Exp
06/28/96
5.260
15,000
87
190,675.00
5.401
CID
GECC
06/28/96
5.5.260
50,000
87
6 35,583.33
5.401
CID
GECC
06/28/96
5.2613
50,000
87
635,583.33
5.401
CID
GECC
06/28/96
5.320
20,000
87
CID
GMAC
06/28/96
5.320
50,000
87
6 42,833.33
5.464
CP
GMAC
06/28/96
5.270
24,632
106
CID
Transam
06/28/96
5.330
50,000
10
784,694.44
5.490
CID
GMAC
06/28/96
5.330
50,000
106
694.44
784�694.44
5.490
CID
GMAC
06/28/96
5.330
50,000
106
5.490
CID
GMAC �
06/28/96
5.350
50,000
106
787,638.89
5.511
CP
Lehman
06/28/96
�,
5.350
50,000
106
787,638.89
5.511
CP
Lehman
06/28/96
5.2°i0
50,000
108
787,500.00
5.408
CP
Merrill
06/28/96
5.200
50,000
109
787,222.22
5.356
CP
GECC
06/28/96
5.200
50,000
109
87,222.22
5.356
CP
GECC
06/28/96
5.200
5,000
109
78,722.22
5.356
CP
GECC
06/28/96
5.200
50,000
109
787,222.22
5.356
CP
GECC
06/28/96
5.200
50,000
109
787,222.22
5.356
CP
GECC
06/28/96
5.200
50,000
109
787,222.22
5 356
CID
GECC
06/28/96
5.050
15,000
1
CID
Merrill
06/28/96
5.050
50,000
1 15
806,597.20
5.204
CID
Merrill
06/28/96
4.880
39,000
148
Disc Notes FHLB
06/28/96
4.890
50,000
14
1 , 005,166.65
5.059
Disc Notes FHLB
06/28/96
5.150
50,000
28
200,277.78
5.242
Disc Notes
FNMA
06/28/96
5.150
50,000
28
200,277:78
5.242
Disc Notes
FNMA
06/28/96
5.1i 50
50,000
28
5.242
Disc Notes FNMA
06/28/96
5.150
50,000
28
200,277.78
5.242
Disc Notes FNMA
06/28/96
5.150
50,000
28
5.242
Disc Notes
FNMA
06/28/96
5.290
50,000
77
565,736.18
5.424
CID
FMCC
06/28/96
5.290
50,000
76
CP
CD
FMCC
Soc Gen
5.300% 06/28/96 5.300
50,000
1
11 7,777.78 5.373
117,777.78 5.373
CD
Soc Gen
5.300% 06/28/96 5.300
50,000
16
—12—
06/23/96 REDEMPTION
CD
Montreal
CD
Montreal
RRP
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
Treas
Notes
PURCHASE
FR
MTN
5.270%
06/28/96
5.270
50,000
22
161,027.78
5.343
5.270%
06/28/96
5.270
50,000
22
161,027.78
5.343
5.250%
5.250%
01/31/01
01/31/01
4.450
25,000
29
(86,929.51)
-4.511
5.250%
01/31/01
4.450
4.450
50,000
50,000
29
29
(173,859.03)
-4.511
5.250%
01/31/01
4.450
50,000
29
(173,859.03)
(173,859.03)
-4.511
-4.511
5.250%
01/31/01
4.470
50,000
28
(168,618.33)
-4.532
5.250%
5.250%
01/31/01
01/31/01
4.470
50,000
28
(168,618.33)
-4.532
5.250%
01/31/01
4.470
4.470
50,000
50,000
28
28
(168,618.33)
-4.532
5.250%
01/31/01
4.470
50,000
28
(168,618.33)
(168,618.33)
-4.532
-4.532
6.000%
6.000%
05/31 /98
05/31 /98
4.970
50,000
22
(151,101.81)
-5.039
6.000%
05/31 /98
4.970
4.800
50,000
50,000
22
16
(151,101.81)
-5.039
6.000%
05/31 /98
4.800
50,000
16
(106,133.33)
(106,133.33)
-4.875
-4.875
5.600% 12/29/97 5.600 25,000
—13—
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes,
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (FFC), Corporate Securities (CB), U.S. Ship Financing Bonds
(TITLE XI' S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA) Medium Term Notes (MTN).
b/ Purchase or sale yield based on 360 day calculation for discount obligations
and Repurchase Agreements.
c/ Repurchase Agreement.
d/ Par amount of securites purchased, sold, or redeemed.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
g/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
i/ Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
—14—
TIME DEPOSIT
N_ DEPOSIT YIELD PARAMOUNT MATURITY
BEVERLY HILLS
Great Western Bank
04-19-96
5.000
501P0002000
07-18-96
Great Western Bank
04-24-96
5.100
75200010000
07-26-96
City National Bank
West America Bank
04-25-96
5.150
10,0005,000
07-29-96
City National Bank
04-26-96
05-08-96
5.120
5.180
25,000,000
08-02-96
City National Bank
05-20-96
5.190
10110003,000
10300011000
08-07-96
08-21-96
City National Bank
05-21-96
5.190
103,0003,000
08-21-96
Tri-Counties
North St National Bank
04-29-96
05-17-96
5.150
101100031000
07-31-96
North St National Bank
05-20-96
5.160
5.350
500,000
08-22-96
50031000
11-20-96
FRESNO
United Security Bank 04-26-96 5.110 33,0003,000 07-26-96
United Security Bank 06-28-96 5.230 11,5003-000 09-26-96
INGLEWOOD
Imperial Bank
Imperial Bank
03-04-96
5.040
111,00011000
07-02-96
Imperial Bank
03-12-96
04-02-96
5.160
5.270
153100011000
07-18-96
Imperial Bank
04-09-96
5.270
10,000,000
203,0003,000
08-05-96
08-07-96
Imperial Bank
Imperial Bank
05-01-96
5.200
5310003,000
07-30-96
Imperial Bank
05-08-96
05-17-96
5.190
5.190
1511000,000
08-14-96
Imperial Bank
06-12-96
5.350
531000,000
103,0003,000
08-14-96
09-10-96
Imperial Bank
Imperial Bank
06-13 -96
5.330
15, 000, 000
09-11-96
06-21-96
5.310
111)00013000
09-19-96
LA MIRADA
Southern Ca Bank
Southern Ca Bank
LOS ANGELES
Preferred Bank
East West Federal Bk
Preferred Bank
Preferred Bank
Preferred Bank
04-04-96
5.230
5,000,000
07-03-96
04-17-96
5.090
51000031000
07-16-96
04-15-96
5.100
13,0003,000
07-15-96
04-16-96
5.080
23,00031000
07-15-96
04-17-96
5.050
2,0002000
07-16-96
05-29-96
5.180
220001P000
08-27-96
06-21-96
5.270
5310003,000
09-19-96
—15—
TIME DEPOSIT
NAME DEPOSIT YIELD PARAMOUNT MATURITY
MANTECA
Delta National Bank
05-22-96
5.170
Delta National Bank
05-22-96
5.340
OAKDALE
Oak Valley Comm. Bank
03-29-96
5.230
PETALUMA
Bank of Petaluma
05-13-96
5.360
REDDING
North Valley Bank
03-25-96
5.220
SACRAMENTO
Sanwa Bank of Calif
01-26-96
5.150
Sanwa Bank of Calif
02-22-96
5.100
Sanwa Bank of Calif
02-27-96
5.100
SAN FRANCISCO
Trans Pacific NB
03-22-96
5.350
SAN LUIS OBISPO
1 st Bk San Luis Obispo
05-08-96
5.170
1st Bk San Luis Obispo
05-29-96
5.350
SAN RAFAEL
West America Bank
04-24-96
5.110
SANTA ANA
Grand National Bank
01-04-96
5.320
VACAVILLE
Continental Pacific Bank
06-05-96
5.450
TOTAL TIME DEPOSITS AS
OF DUNE 289 1996
13,0001000 08-20-96
13,00011000 11-18-96
50011000 09-25-96
11000,000 11-12-96
31)0001)000 09-23-96
53,0003,000 07-31-96
5011000,000 08-20-96
101,0001,000 08-26-96
80011000 09-18-96
211600,000 08-06-96
11,5003,000 11-26-96
251)00011000 07-26-96
951,000 07-02-96
1,000,000
44699959000
12-03-96
—16—
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.'
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
AVERAGE DOLLAR DAYS
DEMAND BANK DEPOSITS
(000 omitted)
DAILY BALANCES
PER BANKS
3419684
341,684
3179266
4159262
396,071
3969795
1939195
1939195
1939195
231,559
148,679
1359703
3569481
5689244
5689244
5689244
400,973
5939015
643,162
737,637
409,603
4099603
409,603
2469039
2749153
1769418
2839201
1659475
165,475
1659475
a/
$3489178
WARRANTS
OUTSTANDING
293259269
2,325,269
196739784
2,3259638
2,3859762
293899120
292679840
2,2679840
292679840
291389676
290159509
290289682
2,3309690
292479238
2,247,238
2,254,844
29175,032
391619058
3,119,207
3,4929252
3,695,734
396959734
39695,734
3,2169881
192199543
192219071
196029562
191819203
191819203
191859617
it/ The prescribed bank balance for June was $299,8939000.00. This consisted
of $127,474,000.00 in compensating balances for services, $172,654,000.00
uncollected funds and a deduction of $235,000.00 for March delayed deposit
credit.
—17—
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1564
In accordance with Sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on June 19, 1996, has determined and designated the amount of money available for deposit and investment
under said sections. In accordance with Sections 16480.1 and 16480.2 of the Government Code, it is the intent that the
money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in
securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management,
and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ-
ations, and for investment in securities and the type of such deposits and investments as follows:
1. In accordance with law, for deposit in demand $146,919,000
bank accounts as Compensating Balance for Services
The active noninterest-bearing bank accounts designation constitutes a calendar -month average balance. For purposes
of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein
as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust
for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the
above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the
number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy
collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be
maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management.
2. In accordance with law, for investment in securities authorized by Section 16430, Government Code, or in term interest -
bearing deposits in banks and savings and loan associations as follows:
From
(1) 06/17/96
(2) 06/24/96
(3) 07/01 /96
(4) 07/08/96
(5) 07/15196
(6) 07/22/96
(7) 07/29/96
(8) 08/05/96
(9) 08/12/96
(10) 08/19/96
To
06/21 /96
06/28/96
07/05196
07/12/96
07/19/96
07/26196
08/O2/ 6
08/09/96
08/16196
08/23/96
Time Deposits in
various Financial
Institutions
In Securities
(Sections 16503a
Transactions
(Section
16430)"
and 16602)*
2,529,800,000
$
28,783,305,000
$ 446,495,000
(2,310,300,000)
$
26,473,005,000
$ 446,495,000
(115,500,000)
$
26,357,505,000
$ 446,495,000
(374,200,000)
$
25,983,305,000
$ 446,495,000
930,800,000
$
26,914,105,000
$ 446,495,000
1,380,700,000
$
28,294,805,000
$ 446,495,000
1,595,100,000
$
29,889,905,000
$ 446,495,000
316,900,000
$
30,206,805,000
$ 446,495,000
546,900,000
$
30,7531705,000
$ 446,495,000
387,400,000
$
31,141,105,000
$ 446,495,000
Estimated
Total
From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in
prime commercial paper under Section 16430(e), Government Code.
Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the
amounts and for the same types of investments as specifically designated above.
Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by
which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance
of. $ 146,919,000.
POOLED MONEY INVESTMENT BOARD:
Chairperso
Member /
Dated: June 19, 1996 — —
*Government Code Member
Z
v �
44
OF TNt
INVESTMENT ADVISORY BOARD Correspondence & Written Material Item E
Meeting Date: September 11, 1996
;TITLE:
�Workplan for Fiscal Year 1996/97
;BACKGROUND:
!Staff is seeking input regarding issues and items the Board wants to address in
Fiscal Year 19�96/97.
RECOMMENDATION:
None at this titj e.
Jo n M. Falconer, Finance Director