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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 E 7 E .X E N L.. O 7 N N c N N C 0 cc N O E 0 cn c C Q n U 3 m U) 0 (D a) a) a) m a) (, a) a, $ z° z° z z° z° z° z° z° z° x w 0 Lo 1°0� �6 ._ ^ cL U U cis Q m N U w w R c .0 `o $ m Q aa) a Q 'V C fn Q N ,O O C lU � N Q N T (O N Z CV N coII V O [41, V V V V O U N V a)C L O O m c g c < (1) o c 46 j �0 ai j �c p 'C p �o O N C). 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O 'C' C O E 30 m CDF-Ti w N U N N CO U tp l0 N N L co O7 J j J m J m A V M 0 O O M N 44 0 N Cl) 7N } N N y0 0 0 t7 7 t0 Q Q N N 7 eZ 0 0 0 0 VJ Q cl y 7 :Z&00to 7 0 0) e} 0 oi 0) 0 01 fA ID 0) v '0 �N fh- Q 004 0 t0 j0 U)r 0) 0) 0) V �N CMS co c e' N ::EO i � O U) c o 7 l0 lL D ' U Q Q co O a O N V' 7 00(—Cl) Mf0 �Z M N O 0 N O M N m Q 64 a O N = o I-- m fh IL U)Z^ R N O cc)N M to N C') j (jR00 E} V O O O O Cl) cl fh OM C6 Q � LO N OD 7 } O O O O Q (n M M m M sA e O t0 40 M M CD 44 t0 M tMi M t0 trf M tH 0 m t0 19 N M M N t0 at N O 4a O N t0 W N O t0 N Cl) t0 t0 N N 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. 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A c c 7 o N p o N o o y o O N V (n OD N C) O N yC o y p N o N o fC/1 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 oz U c4j OF TNT 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 QUM& 44 ,y of ct'►� 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� 0 QZ • U � 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