1998 03 11 IAB• •
hf 4 4
78-495 CALLE TAMPICO - LA QUINTA, CALIFORNIA 92253 - (760) 777-7000
FAX (760) 777-7101
AGENDA TDD (760) 777-1227
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
March 11, 1998 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on February 11, 1998 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for January, 1998
B. Fiscal Year 1998/99 Investment Policies
C. CMTA Conference - April 22 - 24, Sacramento, California
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - February, 1998
B. Pooled Money Investment Board Reports - December 1997
VII BOARD MEMBER ITEMS
Vill ADJOURNMENT
MAILING ADDRESS — P.O. BOX 1504 — LA QUINTA, CALIFORNIA 92253 �`
INVESTMENT ADVISORY BOARD March 11, 1998
BUSINESS SESSION A
aPNIIHtrs�
Transmittal of Treasury Report
for January 31, 1998
BACKGROUND:
Attached please find the Treasury Report for January 31, 1998.
RECOMMENDATION:
Review, Receive and File the Treasury Report of January 31, 1998.
J6hn M. FalcoAer, Finance Director
TO:
FROM:
SUBJECT:
DATE:
T 6 4hf �Qu&t4
MEMORANDUM
La Quinta City Council
John Falconer, Finance Director/Treasurer
Treasurer's Report for January 31, 1998
March 6, 1998
Attached is the Treasurer's Report for the month ending January 31, 1998. 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 $907,027. due to the net effect of expenditures in excess of revenues.
State Pool:
Increase of $4,216,806. due to the net effect of transfers to and from the cash and
investment accounts and Property Tax distribution.
U.S. Treasury Bills, Notes, Securities and Commercial Paper:
Increase of $2,990,977. due to the net effect of the purchase of Prime Commercial Paper and
the monthly adjustment in the amortized value of the investments.
Mutual Funds:
Decrease of $113,445. due to the net, transfer of project funds and interest earned.
Total increase in cash balances $6,187,311.
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, First Trust of California Monthly Statement and Wells Fargo
Monthly Custodian Report to determine the fair market value of investments at month end.
n M. Falconer D to
3nce Director/Treasurer
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ASSETS:'
POOLED CASH
(1,816,921.06)
8,346,782.81
158,027.09
6,687,888.94
LORP INVESTMENT IN POOLED CASH
410,000.00
410.000.00
INVESTMENT T-BILLINOTES 8 OTHER
17,986,349.99
17,986,349.99
LORP CASH
55,701.59
55.701.59
BOND REDEMPTION CASH
6,582,98
768.53
7,351.51
BOND RESERVE CASH
527,432.62
527,432.62
BOND PROJECT CASH
10,122,351.92
597.697.11
10,720,049.03
BOND ESCROW CASH
A
2.654.63
2,654.63
PETTY CASH
1,000.00
1,000.00
CASH & INVESTMENT TOTAL 16,170,428.93
19,471,506.55
756,492.73
36,398,428.21
INVESTMENT IN LAND HELD FOR RESALE
86,319.85
86,319.85
ACCOUNTS RECEIVABLE
59,548.17
81,257.68
140,805.85
PREMIUMIDISCOUNT ON INVESTMENT
(8,045.01)
(1,121.14)
262.69
(8,903.46)
LORP-ACCOUNTS RECEIVABLE
19,725.78
19,725.78
INTEREST RECEIVABLE
2,383.33
2,383.33
LOANINOTES RECEIVABLE
2,560,5W.03
2,560,500.03
DUE FROM OTHER AGENCIES
DUE FROM OTHER GOVERNMENTS
DUE FROM OTHER FUNDS
173,137.49
551,038.04
724,175.53
DUE FROM RDA
6,890,277.20
6,890,277.20
INTEREST ADVANCE -DUE FROM RDA
1,682,295.58
1,682,295.58
NSF CHECKS RECEIVABLE
3,969.71
3,969.71
ACCRUED REVENUE
43,874.22
43,874.22
TRAVEL ADVANCES
1,525.W
1,525.00
EMPLOYEE ADVANCES
PREPAID EXPENSES
RECEIVABLE TOTAL
8,805,091.47
3,255,274.61
262.69
12,060,628.77
WORKER COMPENSATION DEPOSIT
37,637.00
37,637.00
RENT DEPOSITS
UTILITY DEPOSITS
75.00
75.00
MISC. DEPOSITS
2,100.00
2,100.00
DEPOSITS TOTAL
39,812.W
39,812.00
GENERAL FOXED ASSETS
693,426.00
14,947,094,00
11,438,745.05
27,079,265.05
ACCUMULATED DEPRECIATION
(85.081.96)
(85,081.96)
AMOUNT AVAILABLE TO RETIRE LIT DEBT
2.340.653.00
2,340,653.00
AMOUNT TO BE PROVIDED FOR LIT DEBT
350,653.00
91,172,394.86 8,790,000.00
100,313,047.86
TOTAL OTHER ASSETS
606,344.04
14,947,094.00 350,653.00
11,438,745.05 93,513,047.86 8,790,000.00
129,647,883.95
TOTAL ASSETS 25 623 676 44 14,947,094.00 350,653.00 22,813,10t01 11 438 745.05 93 513,047.86 756,755.42 8,790,000.00 178.233.072.78
LIABILITY
ACCOUNTS PAYABLE
DUE TO OTHER AGENCIES
DUE TO OTHER FUNDS
INTEREST ADVANCE -DUE TO CITY
ACCRUED EXPENSES
PAYROLL LIABILITIES
STRONG MOTION INSTRUMENTS
FRINGE TOED LIZARD FEES
SUSPENSE
DUE TO THE CITY OF LA QUINTA
PAYABLES TOTAL
(61,632.19) (61.632.19)
577,814.92 577.814.92
551.038.04 173,137.49 724,175.53
30,474.28
30,474.28
1,284.57
1,284.57
(2,984.24)
(2,984.24)
29,664.23
29,664.23
636,253.76
489,405.85
173,137.49 1,298,797,10
ENGINEERING TRUST DEPOSITS
88,330.02
88,330.02
SO. COAST AIR QUALITY DEPOSITS
ARTS IN PUBLIC PLACES DEPOSITS
208,762.25
208,762,25
LORP DEPOSITS
14,341.00
14,341.00
DEVELOPER DEPOSITS
797, t 81.31
797,181.31
MISC. DEPOSITS
76,191.12
76,191.12
AGENCY FUND DEPOSITS
1,187,475.30
1,187,475.30
TOTAL DEPOSITS
2,357,940.00 14,341.00
2,372,281.00
DEFERRED REVENUE
OTHER LIABILITIES TOTAL
COMPENSATED ABSENCES PAYABLE
350,653.00
350,653.00
DUE TO THE CITY OF LA QUINTA
8,572,573.99
8,572,573.99
DUE TO COUNTY OF RIVERSIDE
12,320,665.87
12,320,655.87
DUE TO C.V. UNIFIED SCHOOL DIST.
11,27008.00
11,270,808.00
DUE TO DESERT SANDS SCHOOL DIST.
569,010.00
569,010.00
BONDS PAYABLE
60,780,000.00
8,790,000.00 69,570,000.00
TOTAL LONG TERM DEBT
350.653.00 93,513,047.86
8,790,000.00 102,653,700.86
TOTAL LIABILITY
EQUITY -FUND BALANCE
TOTAL LIABILITY & EQUITY
2,994,193.76 350,653.00 503,746.85 93,513,047.86 173,137.49 8,790,000.00 106,324,778.96
22,629,482.68 14,947,094.00 22,309,354.16 11,438,74&05 583.617.93 71,908,293.82
25,623,676.44 14,947,094.00 350 653 00 22 81310101 11,438,745.05 93,513,047.86 756,755.42 8,790,000.00 178 233 072 78
INVESTMENT ADVISORY BOARD Business Session No. B
Meeting Date: March 11, 1998
TITLE:
Fiscal Year 1998/99 Investment Policies
Pursuant to State Legislation the City investment policies must be approved on an
annual basis by the City Council. This approval is done in June of each year.
In order to meet this June deadline, the current investment policies have been
attached for any changes or updates that may be considered appropriate.
Commence review of the Investment policies for approval by City Council in June
1998.
41q
ohn M. Falconer, Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Executive Summary
2
I
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
5
No. Safety
► Liquidity
No. Yield
V
Prudence
6
VI
Delegation of Authority
6
VII
Conflict of Interest
7
Vill
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
IX
Authorized Investments and Diversification
8
X
Investment Pools
11
XI
Collateral ization
12
X11
Safekeeping and Custody
12
XIII
Interest Earning Distribution Policy
12
XIV
Maximum Maturities
13
XV
Internal Controls
13
XVI
Benchmark
15
XVII
Reporting Standards
15
XVIII
Investment of Bond Proceeds
15
XIX
Investment Advisory Board - City of La Quinta
16
XX
Investment Policy Adoption
16
Appendices Authorized Investments and Diversification 17
Municipal Code Ordinance 2.70 - Investment Advisory Board 18
Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 19
Listing of Approved Financial Institutions 21
Broker/Dealer Questionnaire and Certification 22
Investment Pool Questionnaire 26
Segregation of Major Investment Responsibilities 30
Glossary 31
1
City of La Quinta
Investment Policy
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards
users must follow in investing funds of the City of La Quinta.
It is the policy of the City of La Quinta to invest all public funds in a manner which
will provide a diversified portfolio with maximum security while meeting daily cash
flow demands and the highest investment return in conformity to all state and local
statutes. This Policy applies to all cash and investments of the City of La Quinta,
La Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter
referred in this document as the "City".
The primary objectives, in order of priority, of the City of La Quinta's investment
activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be
derived.
Authority to manage the City of La Quinta's investment portfolio is derived from
the City Ordinance. Management responsibility for the investment program is
delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy. The Treasurer shall establish and implement a system of internal
controls to maintain the safety of the portfolio. In addition, the internal control
system will also insure the timely preparation and accurate reporting of the portfolio
financial information. The adequacy of these controls will be reviewed and reported
.on annually by an independent auditor.
2
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance to a reasonable person of
questionable or improper influence.
The City of La Quinta maintains a listing of financial institutions which are approved
for investment purposes. All Broker/Dealers and financial institutions selected by
the Treasurer to provide investment services will be approved by the City Manager
subject to City Council approval.
The Treasurer will be permitted to invest only in City approved investments up to
the maximum allowable percentages and, where applicable, through the bid process
requirements. Authorized investment vehicles and related maximum portfolio
positions are listed in Appendix - Authorized Investments and Diversification. At
least two bids will be required of investments in government securities.
Collateralization will be required for Certificates of Deposit in excess of $ 100,000.
Collateral will always be held by an independent third party with whom the City of
La Quinta has a current custodial agreement. Evidence of ownership must be
supplied to the City and retained by the City Treasurer.
The City of La Quinta shall require that each individual investment have a maximum
maturity of two years unless specific approval is authorized by the City Council. In
addition, the City's investment in the State Local Agency Investment Fund (LAIF) is
allowable as long as the average maturity does not exceed two years, unless
specific approval is authorized by the City Council. The City's investment in Money
Market Mutual funds is allowable as long as the average maturity does not exceed
60 days.
The City of La Quinta will use the six month U.S. Treasury Bill as a benchmark
when measuring the performance of the investment portfolio.
The Investment Policies shall be adopted by resolution of the La Quinta City Council
on an annual basis, The Investment Policies will be adopted before the end of June
of each year.
This Executive Summary is an overall review of the City of La Quinta Investment
Policies. Reading this summary does not constitute a complete review which can
only be accomplished by reviewing all the pages.
3
City of La Quinta
Statement of Investment Policy
July 1, 1998 through June 30, 1999
Adopted by the City Council on june 24, 1997.
The general purpose of this document is to provide the rules and standards users
must follow in administering the City of La Quinta cash investments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will
provide a diversified portfolio with safety of principal while meeting daily cash flow
demands with the highest investment return . In addition, the Investment Policy
will conform to all State and local statutes governing the investment of public
funds.
This Investment Policy applies to all cash and investments of the City of La Quinta,
City of La Quinta Redevelopment Agency and the City of La Quinta Financing
Authority, hereafter referred in this document as the "City". These funds are
reported in the City of La Quinta Comprehensive Annual financial Report (CAFR)
and include:
All funds within the following fund types:
► General
► Special Revenue
► Capital Project
► Debt Service
► Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
CI
IV OBJECTIVES
The primary objective, in order of priority, of the City of La Quinta's investment
activity shall be:
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio in
accordance with the permitted investments. The objective will be to mitigate
credit risk and interest rate risk.
Credit Risk- is the risk of loss due to the failure of the security issuer
or backer. Credit risk may be mitigated by:
► Limiting investments to the safest types of securities;
► Pre -qualifying the financial institutions, and broker/dealers,
which the City of La Quinta will do business; and
► Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
Interest Rate risk is the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates. Interest rate
risk may be mitigated by:
► Structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby
avoiding the need to sell securities on the open market prior to
maturity; and
► By investing operating funds primarily in shorter -term securities.
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that securities mature concurrent with cash needs
to meet anticipated demands. Furthermore since all possible cash demands
cannot be anticipated the portfolio should consist of securities with active
secondary or resale markets.
3. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
investment is of least importance compared to the safety and liquidity
objectives described above. The core of investments are limited to relatively
low risk securities in anticipation of earning a fair return relative to the risk
being assumed. Securities shall not be sold prior to maturity with the
following exceptions:_
► A declining credit security could be sold early to minimize loss of
principal;
► Liquidity needs of the portfolio require that the security be sold.
V PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of
California in Probate Code Sections 16045 through 16054..
Section 16053 sets forth the terms of a prudent person which are as follows:
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence excerise in the
professional management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived.
_ 1911 K9J_ .•Jqk
Authority to manage the City of La Quinta's investment portfolio is derived from
the City Ordinance. Management responsibility for the investment program is
delegated to the City Treasurer, who shall establish written procedures for the
operation of the investment program consistent with the Investment Policy.
Procedures should include reference to safekeeping, wire transfer agreements,
banking service contracts, and collateral/depository agreements. Such procedures
shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as
provided under the terms of this Investment Policy and the procedures established
by the City Treasurer. The City Treasurer shall be responsible for all transactions
undertaken and shall establish a system of controls to regulate the activities of
subordinate officials. The City Manager or Assistant City Manager shall approve in
writing all purchases and sales of investments prior to their execution by the City
Treasurer.
L
U�616111111 Itrolfluel atl 111
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance of improper influence.
Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall
adhere to the State of California Code of Economic Interest and to the following:
► The City Manager, Assistant City Manager, and the City Treasurer shall not
personally or through a close relative maintain any accounts, interest, or
private dealings with any firm with which the City places investments, with
the exception of regular savings, checking and money market accounts, or
other similar transactions that are offered on a non-negotiable basis to the
general public. Such accounts shall be disclosed annually to the City Clerk in
conjunction with annual disclosure statements of economic interest.
► All persons authorized to place or approve investments shall report to the
City Clerk kinship relations with principal employees of firms with which the
City places investments.
The City of La Quinta maintains a listing of financial institutions which are approved
for investment purposes. In addition a list will also be maintained of approved
broker/dealers selected by credit worthiness, who maintain an office in the State of
California.
1. Broker/Dealers who desire to become bidders for investment transactions
must supply the City of La Quinta with the following:
► Current audited financial statements
► Proof of National Association of Security Dealers Certification
► Trading resolution
► Proof of California registration
► Resume of Financial broker
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy
The City Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm
and individual conducting investment related business.
7
The City Treasurer will also contact the following agencies during the
verification process:
► National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment
services will be approved by the City Manager subject to City Council
approval. The City Attorney will perform a legal review of the trading
resolution/investment contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to
U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus
and statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
receive City funds for investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions insured by the Federal Deposit Insurance Corporation
B. Collateral - The amount*of City of La Quinta deposits or
investments not insured by agency of the federal government
shall be 1 10% collateralized by securities' or 150% mortgages'
market values of that amount of invested funds plus unpaid
interest earnings.
C. Size - The amount of City of La Quinta deposits or investments
must be collateralized or insured by an agency of the federal
government.
D. Disclosure - Each financial institution maintaining invested funds
in excess of $100,000 shall furnish corporate authorities a copy
of all statements of resources and liabilities which it is required
to furnish to the State banking or savings and loan
commissioners as required by the California Financial Code.
The City shall not invest in excess of $100,000 in banking
institutions which do not disclose to the city a current listing of
securities pledged for collateralization in public monies.
•'I
4AO11O-kTV&*tL _ _. •
The City Treasurer will be permitted to invest in the investments listed in the
Appendix entitled - Authorized Investments and Diversification.
E:
• ! ` 1 - • _s •If —Alt •
As provided in Sections 16429.1, 53601, 53601.1, and 53649 of the
Government Code, the State of California limits the investment vehicles
available to local agencies as summarized in the following paragraphs.
Section 53601, as now amended, provides that unless Section 53601
specifies a limitation on an investment's maturity, no investments with
maturities exceeding five years shall be made. The City of La Quinta
Investment Policy has specified that no investment may exceed two years.
State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local
government agencies are each authorized to invest a maximum of $20 million
per account in this investment program administered by the California State
Treasurer. The City of La Quinta has two accounts with LAIF. The City of
La Quinta has a limitation of 35% of the portfolio.
Government Agency Issues - As authorized in Government Code Sections
53601 (a) through (n) as they pertain to surplus funds, this category includes
a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or
other indebtedness. The City of La Quinta Investment Policy does not
allow investments in local and state indebtedness
• U.S. Treasury notes or other indebtedness secured by the full faith and
credit of the federal government. The City of La Quinta Investment
Policy limits investments in U.S. Treasury issues to 75%
• Other federal agency securities including but not limited to issued by
the Government National Mortgage Association, Federal National
Mortgage Association, and the Federal Home Loan Mortgage
Corporation. The City of La Quinta investment policy limits
investments in federal agency securities to 75% with no one federal
agency of one specific entity can exceed 25% of the portfolio.
Bankers' Acceptances - As authorized in Government Code Section 53601
(f), 40% may be invested in Bankers' Acceptances, although no more than
30% of the portfolio may be invested in Bankers' Acceptances with any one
commercial bank. Additionally, the maturity period cannot exceed 270 days;
however, Bankers' Acceptances are seldom marketed with maturities in
excess of 180 days. The City of La Quinta investment policy does not allow
investment in Bankers' Acceptances.
Commercial Paper - The City of La Quinta Investment Policy only allows
investments in commercial paper to 30%, the dollar weighted average
maturity does not exceed 31 days. As authorized in Government Code
Negotiable Certificates of Deposit - As authorized in Government Code
Section 53601(h), 30% maybe invested in negotiable certificates of deposit
issued by commercial banks and savings and loan associations. The City of
La Quinta investment policy does not allow investment in Negotiable
Certificates of Deposit.
Repurchase and Reverse Repurchase Agreements - As authorized in
Government Code Section 53601(i), these investment vehicles are
agreements between the local agency and seller for the purchase of
government securities to be resold at a specific date and for a specific
amount. Repurchase agreements, are generally used for short term
investments varying from one day to two weeks. There is no legal limitation
on the amount of the repurchase agreement. However, the maturity period
cannot exceed one year. The market value of securities underlying a
repurchase agreement shall a at least 102% of the funds invested and shall
be valued at least quarterly. The City of La Quinta Investment Policy does
not allow investment in Repurchase Agreements.
The term "reverse repurchase agreement" means the sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and for a specific
amount. As provided in Government Code Section 53635, reverse
repurchase agreements require the prior approval of the City Council. The
City of La Quinta Investment Policy does not allow investment in Reverse
Repurchase Agreements.
Corporate Notes and Diversified Management Companies - As authorized in
Government Code Section 53601 (j) and (k), local agencies may invest in
corporate notes for a maximum period of five years in an amount not to
exceed 30% of the agency's portfolio. The notes must be issued by
corporations organized and operating in the United States or by depository
institutions licensed by the United States or any other state and operating in
the United States. Local agencies are also authorized in invest in shares of
beneficial interest issued by diversified management companies (mutual
funds) in an amount not to exceed 20% of the agency's portfolio. There are
a number of other qualifications and restrictions regarding allowable
10
investments in corporate notes and shares of beneficial interest issued by
mutual funds.. The City of La Quinta investment policy does not allow
corporate notes and limits the percentage of mutual funds to 20%.
Mortgage -Backed Securities - As authorized in Government code Section
53601(n), local agencies may invest in mortgage -backed securities such as
mortgage pass -through securities and collateralized mortgage obligations for
a maximum period of five years in an amount not to exceed 20% of the
agency's portfolio. Securities eligible for investment shall have a "A" or
higher rating. The City of La Qui-nta investment policy does not allow
investment in Mortgage -Backed Securities.
Financial Futures and Financial Option Contracts - As authorized in
Government Code Section 53601.1, local agencies may invest in financial
futures or option contracts in any of the above investment categories subject
to the same overall portfolio limitations. The City of La Quinta Investment
Policy does not allow investments in financial futures and financial option
contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
collateralized from 105% to 150% depending on the specific security
pledged as collateral in accordance with Government Code Section 53652.
The collateral pool is administered by the State, and is composed of a wide
variety of government securities, as well as promissory notes secured by
first mortgages on improved residential property located in the State and
letters of credit issued by the Federal Home Loan Bank of San Francisco.
There are no portfolio limits on the amount of maturity for this investment
vehicle. The City of La Quinta investment policy limits the percentage of
Certificates of Deposit to 60%.
Sweep Accounts - As authorized by the City Council, a. U.S. Treasury Money
Market Sweep Account with a $50,000 target balance may be maintained in
conjunction with the checking account.
There are three (3) types of investment pools: 1) state -run pools, 2) pools that are
operated by a political subdivision where allowed by law and the political
subdivision is the trustee i.e. County Pool; and 3) pools that are operated for profit
by third parties.
The City of La Quinta has an investment with the State of California's Treasurers
Office Local Agency Investment Fund commonly referred to as LAIF. LAIF was
organized in 1977 through State Legislation Section 16429.1, 2 and 3. Each LAIF
11
account is restricted to a maximum investable limit of $20 million. In addition, LAIF
will provide quarterly market value information to the City of La Quinta.
On an annual basis the City Treasurer will submit the Investment Pool
Questionnaire to LAIF.
Also, prior to opening any new Investment Pool account, which would require City
Council approval, the City Treasurer will require the completion of the Investment
Pool Questionnaire.
The City does not have an investment with any other Investment Pool - County
Pools or Third Party Pools.
•
Collateralization will be required for Certificates of Deposits. The type of collateral
is limited to City authorized investments.
1. Certificates of Deposits under $100.000,
.The City Treasurer may waive collateralization of a deposit that is federally
insured.
2. Certificates of Deposit over $100.000,
The amount not federally insured shall be 1 10% collateralized by securities
or 150% mortgages market value of that amount of invested funds plus
unpaid interest earnings.
Collateral will always be held by an independent third party with whom the City of
La Quinta has a current custodial agreement. Evidence of ownership must be
supplied to the City of La Quinta and retained by the City Treasurer.
XII SAFEKEEPING AND CUSTODY
All security transactions of the City of La Quinta shall be conducted on a delivery -
versus - payment (DVP) basis. Securities will be held by a third party custodian
designated by the City Treasurer and evidenced by safekeeping receipts. Deposits
and withdrawals of money market mutual funds and LAIF shall be made directly to
the entity and not to an investment advisor. Money market mutual funds and LAIF
shall also operate on a DVP basis to be considered for investment.
Interest earnings is generated from pooled investments and specific investments.
1 Pooled Investments - It is the general policy of the City to pool all available
12
operating cash of the City of La Quinta, La Quinta Redevelopment Agency
and La Quinta Financing Authority and allocate interest earnings, in the
following order, as follows:
A. Payment to the General Fund of an amount equal to the total annual
bank service charges as incurred by the general fund for all operating
funds as included in the annual operating budget.
B. Payment to the General Fund of a management fee equal to 5% of the
annual pooled cash fund investment earnings.
C. Payment to each fund of an amount based on the average
computerized daily cash balance included in the common portfolio for
the earning period.
2. Specific Investments - Specific investments purchased by a fund shall incur
all earnings and expenses to that particular fund.
UMEW �� 11TTIFT,Ely, i kit
The City of La Quinta shall require that each individual investment have a maximum
maturity of two years unless specific approval is authorized by the City Council. In
addition, the City's investment in the State Local Agency Investment Fund (LAIF) is
allowable as long as the average maturity does not exceed two years, unless
specific approval is authorized by the City Council. The City's investment in Money
Market Mutual funds is allowable as long as the average maturity does not exceed
60 days.
XV INTERNAL CONTROLS
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
► Safeguard assets;
► The orderly and efficient conduct of its business, including adherence to
management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and,
► Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute
assurance that the City's assets are safeguarded, it is the intent of the City's
internal control to provide a reasonable assurance that management of the
investment function meets the City's objectives.
The internal controls shall address the following:
13
a. Control of collusion. Collusion is a situation where two or more employees
are working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record keeping. By
separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction, a separation of
duties is. achieved.
C. Custodial safekeeping. Securities purchased from any bank or dealer
including appropriate collateral (as defined by State Law) shall be placed with
an independent third party for custodial safekeeping.
d. Avoidance of physical delivery securities. Book entry securities are much
easier to transfer and account for since actual delivery of a document never
takes place. Delivered securities must be properly safeguarded against loss
or destruction. The potential for fraud and loss increases with physically
delivered securities.
e. Clear delegation of authority to subordinate staff members. Subordinate
staff members must have a clear understanding of their authority and
responsibilities to avoid improper actions. Clear delegation of authority also
preserves the internal control structure that is contingent on the various staff
positions and their respective responsibilities as outlined in the Segregation
of Major Investment Responsibilities appendices.
f. Written confirmation or telephone transactions for investments and wire
Transfers. Due to the potential for error and improprieties arising from
telephone transactions, all telephone transactions shall be supported by
written communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and the safekeeping
institution has a list of authorized signatures. Fax correspondence must be
supported by evidence of verbal or written follow-up.
g. Development of a wire transfer agreement with the City's bank and third
party custodian. This agreement should outline the various controls, security
provisions, and delineate responsibilities of each party making and receiving
wire transfers.
In addition to the System of Internal Controls developed by the City, the Internal
Controls shall be reviewed annually by the independent auditor.
14
The independent auditors management letter comments pertaining to cash and
investments, if any, shall be directed to the City Manager who will direct the City
Treasurer to provide a written response to the independent auditors letter. This
response will also be directed to the City's Investment Advisory Board for their
action.
XVI BENCHMARK
The investment portfolio shall be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles commensurate with the
investment risk constraints and the cash flow needs of the City. Return on
investment is of least importance compared to safety and liquidity objectives.
The City of La Quinta will use the six month U.S. Treasury Bill as a benchmark
when measuring the performance of the investment portfolio.
SB564 section 3 requires a quarterly report to the Legislative Body of Investment
activities. The City of La Quinta has elected to report the investment activities to
the City Council on a monthly basis through the Treasurers Report.
The City Treasurer shall submit a monthly Treasurers Report to the City Council and
the Investment Advisory Board that includes all investments under the authority of
the Treasurer.
The Treasurers Report shall consist of a narrative of significant changes in cash
balances and the following:
► Changes in investments from the previous month;
► A certification statement from the City Treasurer;
► Purchases and sales of investments;
► Cost to market value comparisons of all investments by authorized.
investment category, except for LAIF which will be provided quarterly;
► Comparison of actual holdings to Investment Policy maximums;
► Twenty four (24) months history of cash and investments for trend analysis;
► Balance Sheet.
• :•�� U061014
The City's investment policy shall govern bond proceeds and bond reserve fund
investments. California Code Section 5922 (d) governs the investment of bond
15
proceeds and reserve funds in accordance with bond indenture. provisions which
shall be structured in accordance with the City's investment policy.
The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations
as required and return excess earnings to the US Treasury from investments of
proceeds of bond issues sold after the effective date of this law. This arbitrage
calculations may be contracted with an outside source to provide the necessary
technical assistance to comply with this regulation. Investable funds subject to the
1986 Tax Reform Act will be kept segregated from other funds and records will be
kept in a fashion to facilitate the calculations. The City's investment position
relative to the new arbitrage restrictions is to continue pursuing the maximum yield
on applicable investments while ensuring the safety of capital and liquidity. It is the
City's position to continue maximization. of yield and to rebate excess earnings, if
necessary.
The Investment Advisory Board (IAB) consists of seven members of the community
that have been appointed by and report to the City Council. The IAB meets on a
monthly basis to 1) review account statements and verifications to ensure accurate
reporting as they relate to an investment activity, 2) monitor compliance with
existing Investment Policy and Procedures, and 3) review and make
recommendations concerning investment policy and procedures investment
contracts and investment consultants.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment
Advisory Board Provisions.
-- ► ►�WIA;Lei 4 LWAF.1106' •�
On an annual basis, the Investment policies will be initially reviewed by the
Investment Advisory Board and the City Treasurer. The Investment Advisory Board
will forward the Investment policies, with any revisions, to the City Manager and
City Attorney for their review and comment. A joint meeting will be held with the
Investment Advisory Board, City Manager, City Attorney, and City Treasurer to
review the Investment policies and comments, prior to submission to the City
Council for their consideration.
The Investment Policies shall be adopted by resolution of the City of La Quinta City
Council on an annual basis. The Investment Policies will be adopted before the end
of June of each year.
16
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17
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment and Terms.
2.70.020 Board meetings and compensation.
2.70.030 Board functions.
2.70.010 General rules regarding appointment and terms.
Except as set out below, see Chapter 2.06 for General Provisions.
The Investment Advisory Board (the "board") is a standing board composed of seven (7)
members from the public that are appointed by city council. La Quinta residency is preferred,
but not a requirement for board members. Recruitment for members may be advertised outside
of the city".
Background in the investment field and/or related experience is preferred. Background
information will be required and potential candidates must agree to a background check and
verification.
On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any
time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters on the board. Such matters may
include, but are not limited to, changes in employment, changes in residence, or changes in
clients.
The Board members will serve for two year staggered terms beginning on July 1 of every
other year, commencing July 1, 1993. Initially, two members will be appointed for two year
terms and three members will be appointed for one year terms. These initial appointments will
start their yearly calculations from July 1, 1993.
2.70.020 Board meetings and compensation.
Board members will be reimbursed for meeting and related expenses at an amount of fifty
dollars ($ 50) per meeting.
Initially, the Board should meet once a month, but this schedule may be extended to
quarterly meetings upon the concurrence of the Board and the City Council. The specific
meeting dates will be determined by the Board members and meetings may be called for on an
as needed basis.
2.70.030 Board functions.
The Board will annually elect a Chairperson and Vice -chairperson at the first meeting held
after each June 30.
The following are functions of the Board that are to be addressed at each meeting: (1) review
account statements and verifications to ensure accurate reporting as they relate to an
investment activity; (ii) monitor compliance with existing Investment policy and procedures; and
(iii) review and make recommendations concerning investment policy and procedures,
investment contracts, and investment consultants.
The Board will report to City council after each meeting either in person or through
correspondence at a regular City Council meeting.
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City. bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607
and 53608 of the Government Code, the authority to invest and reinvest moneys of
the city, to sell or exchange securities, and to deposit them and provide for their
safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635
of the Government Code, as said sections now read or may hereafter be amended,
from moneys in his custody which are not required for the immediate necessities of
the city and as he may deem wise and expedient, and to sell or exchange for other
eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 §
1 (part), 1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys
have been invested pursuant to this chapter, so that the proceeds may, as appropriate,
be applied to the purchase for which the original purchase money may have been
designated or placed in the city treasury. (Ord. 2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
19
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the
terms of any state law, including but not limited to Section 53608 of the Government
Code as it now reads or may hereafter be amended. In accordance with said section,
the city treasurer shall take from the institution or depository a receipt for the
securities so deposited and shall not be responsible for the securities delivered to and
receipted for by the institution or depository until they are withdrawn therefrom by the
city treasurer. (Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in
accordance with Section 36523 and 26524 of the Government code and any other
applicable provisions of law. (Ord. 2 § 1 (part), 1982)
all,
3. Deferred Compensation - International City/County Management
Association
Retirement Corporation
4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA
Dean Witter, Newport Beach, CA
Smith Barney, Newport Beach, CA
5. Government Pool - State of California Local Agency Investment
Fund
City of La Quinta Account
La Quinta Redevelopment Agency
6. Bond Trustees - 1991 City Hall Revenue Bonds - First Trust
1991 RDA Project Area 1 - First Trust
1992 RDA Project Area 2 - First Trust
1994 RDA Project Area 1 - First Trust
1995 RDA Project Area 1 & 2 - First Trust
Assessment Districts - First Trust
No Changes to this listing may be made without City Council approval.
21
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:
2.
3.
9
4
Address:
Telephone: ( ) ( )
Broker's Representative to the City (attach resume):
Name:
Title:
Telephone:, ( )
Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City
employees (attach resume)
Name:
Title:
7.
Telephone: (, ) t 1
Which of the above personnel have read the City's investment policy?
8. Which instruments are offered regularly by your local office? (Must equal
100%)
% U.S. Treasuries. % Repos
% BA's % Reverse Repos
% Commercial Paper % CMO's
% CD's % Derivatives
% Mutual Funds % Stocks/Equities
% Agencies (specify): % Other (specify):
9. References -- Please identify your most directly comparable public sector
clients in our geographical area.
Entity
Contact
Telephone ( )
Client Since
Entity
Contact
Telephone
Client Since
10. Have any of your clients ever sustained a loss on a securities transaction
arising from a misunderstanding or misrepresentation of the risk
characteristics of the instrument? If so, explain.
11. Has your firm or your local office ever been subject to a regulatory or state/
federal agency investigation for alleged improper, fraudulent, disreputable or
unfair activities related to the sale of securities? Have any of your employees
been so investigated? If so,
explain.
12. Has a client ever claimed in writing that yQu were responsible for an
investment loss.? Yes No If yes, please provide
action taken
Has a client ever claimed in writing that your firm was responsible for an
investment loss? Yes No If yes, please provide
action taken
Do M have any current, or pending complaints that are unreported to the
NASD?
Yes No If yes, please provide action taken
23
Does your firm have any current, or pending complaints that are unreported
to the NASD? Yes No If yes, please provide action
taken
13. Explain your clearing and safekeeping procedures, custody and delivery
process.
Who audits these fiduciary responsibilities?
Latest Audit Report Date
14. How many and what percentage of your transactions failed.
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits
for the City of La Quinta.
16.
Is your firm a member in the S.I.P.C. insurance program. Yes
If yes, explain primary and excess coverage and carriers.
17. What portfolio information, if any, do you require from your clients?
18. What reports and transaction confirmations or any other research
publications will the City receive?
19: Does your firm offer investment training to your clients? Yes No
24
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date.
21.
22.
Please list your NASD Registration Number,
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
23. Do you maintain an office in California. Yes No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
• Latest audited financial statements.
• Samples of reports, transaction confirmations and any other
research/publications the City will receive.
• Samples of research reports and/or publications that your firm regularly
provides to clients.
• Complete schedule of fees and charges for various transactions.
'CERTIFICATION'
*CERTIFICATION
I hereby certify that I have personally read the Statement of Investment Policy of
the City of La Quinta, and have implemented reasonable procedures and a system
of controls designed to preclude imprudent investment activities arising out of
transactions conducted between our firm and the City of La Quints.. All sales
personnel will be routinely informed of the City's investment objectives, horizons,
outlooks, strategies and risk constraints whenever we are so advised by the City.
We pledge to exercise due diligence in informing the City of La Quinta of all
foreseeable risks associated with financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all
background checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate
to the best of my knowledge.
Broker Representative
Date
Title
Sales Manager and/or Managing Partner*
Date Title
25
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the following questions and issues should be considered.
SECURITIES
Government pools may invest in a broader range of securities than your entity invests
in. It is important that you are aware of, and are comfortable with, the securities the
pool buys.
1. Does the pool provide a written statement of investment policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?
4. Does the pool contain only the types of securities that are permitted by your
investment policy?
INTEREST
Interest is not reported in a standard format, so it is important that you know how
interest is quoted, calculated and distributed so that you can make comparisons with
other investment alternatives.
Interest Calculations
1. Does the pool disclose the following about yield calculations:
a. The methodology used to calculate interest? (Simple maturity, yield to maturity,
etc.)
b. The frequency of interest payments?
c. How interest is paid? (Credited to principal at the end of the month, each
quarter; mailed?)
d. How are gains/losses reported? Factored monthly or only when realized?
26
REPORTING
1. Is the yield reported to participants of the pool monthly? (If not, how often?)
2. Are expenses of the pool deducted before quoting the yield?
3. Is the yield generally in line with the market yields for securities in which you
usually invest?
4. How often does the pool report, and does that report include the market value of
securities?
SECURITY
The following questions are designed to help you safeguard your funds from loss of
principal and loss of market value.
1. Does the pool disclose safekeeping practices?
2. Is the pool subject to audit by an independent auditor?
3. Is a copy of the audit report available to participants?
4. Who makes the portfolio decisions?
5. How does the manager monitor the credit risk of the securities in the pool?
6. Is the pool monitored by someone on the board of a separate neutral party external
to the investment function to ensure compliance with written policies?
7. Does the pool have specific policies with regards to the various investment
vehicles?
a. What are the different investment alternatives?
b. What are the policies for each type of investment?
8. Does the pool mark the portfolio to its market value?
9. Does the pool disclose the following about how portfolio securities are valued:
a. The frequency with which the portfolio securities are valued?
b. The method used to value the portfolio (cost, current value, or some other,
method)?
27
OPERA TIONS
The answers to these questions will help you determine whether this pool meets your
operational requirements:
1. Does the pool limit eligible participants?
2. What entities are permitted to invest in the pool?
3. Does the pool allow multiple accounts and sub -accounts?
4. Is there a minimum or maximum account size?
5. Does the pool limit the number of transactions each month? What is the number
of transactions permitted each month?
6. Is there a limit on transaction amounts for withdrawals and deposits?
a. What is the minimum and maximum withdrawal amount permitted?
b. What is the minimum and maximum deposit amount permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
11. What are the procedures for making deposits and withdrawals?
a. What is the paperwork required, if any?
b. What is the wiring process?
12. Can an account remain open with a zero balance?
13. Are confirmations sent following each transaction?
STA TEMENTS
It is important for you and the agency's trustee (when applicable), to receive
statements monthly so the pool's records of your activity and holding are reconciled
by you and your trustee.
:11
1. Are statements for each account sent to participants?
a. What are the fees?
b. How often are they passed?
c. How are they paid?
d. Are there additional fees for wiring funds (what is the fee)?
2. Are expenses deducted before quoting the yield?
QUESTIONS TO CONSIDER FOR BOND PROCEEDS
It is important to know (1) whether the pool accepts bond proceeds and (2) whether
the pool qualifies with the U.S. Department of the Treasury as an acceptable
commingled fund for arbitrage purposes.
1. Does the pool accept bond proceeds subject to arbitrage rebate?
2. Does the pool provide accounting and investment records suitable for proceeds of
bond issuance subject to arbitrage rebate?
3. Will the yield calculation reported by the pool be acceptable to the IRS or will it
have to be recalculated?
4. Will the pool accept transaction instructions from a trustee?
5. Are you allowed to have separate accounts for each bond issue so that you do not
commingle the interest earnings of funds subject to rebate with funds not subject
to regulations?
w
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsibilities
Develop formal Investment Policy City Treasurer
Recommend modifications to Investment Policy Investment Advisory Board
Review formal Investment Policy and recommend City Manager. and
City Council action City Attorney
Adopt formal Investment Policy City Council
Review Financial Institutions & Select Investments City Treasurer
Approve investments City Manager or
Assistant City Manager
Execute investment transactions City Treasurer
Confirm wires, if applicable City Manager or Accounting
Supervisor
Record investment transactions in City's
accounting records Accounting Supervisor
Investment verification - match broker confirmation
to City investment records Account Technician
Reconcile investment records
to accounting records and bank statements
to Treasurers Report
of investments Account Technician
Security of investments at City Vault
Security of investments Outside City Third Party Custodian
Review internal control procedures External Auditor
30
GLOSSARY
The purpose of this glossary is to provide the reader of the City of La Quinta
investment policies with a better understanding of financial terms used in municipal
investing.
AGENCIES: Federal agency securities
ASKED: The price at which securities are
offered.
BANKERS' ACCEPTANCE (BA): Short-term
credit arrangements to enable businesses to
obtain funds to finance commercial
transactions. They are time drafts drawn on
a bank by an exporter or importer to obtain
funds to pay for specific merchandise. By its
acceptance, the bank becomes primarily
liable for the payment of the drafts at its
maturity. An acceptance is a high-grade
negotiable instrument. Acceptances are
purchased in various denominations for 30,
60 or 90 days, but no longer than 270 days.
The interest is calculated on a 360-day
discount basis similar to treasury bills. Local
agencies may not invest more than 40% of
their surplus money in bankers acceptances.
BID: The price offered by a buyer of
securities. (When you are selling securities,
you ask for a bid.) See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT (CD): Time
deposits of a bank or savings and loan. They
are purchased in various denominations with
maturities ranging from 30 to 360 days. The
interest is calculated on a 360-day, actual -
day month basis and is payable monthly.
COLLATERAL: Securities, evidence of
deposit or other property which a borrower
pledges to secure repayment of a loan. Also
refers to securities pledged by a bank to
secure deposits of public monies.
COMMERCIAL PAPER: S h o r t- t e r m
unsecured promissory notes issued by a
corporation to raise working capital. These
negotiable instruments are purchased at a
discount to par value or at par value with
interest bearing. Commercial paper is issued
by corporations such as General Motors
Acceptance Corporation, IBM, Bank America,
etc.
COMPREHENSIVE ANNUAL FINANCIAL
REPORT (CAFR): The official annual report
for the City of La Quinta. It includes five
combined statements for each individual fund
and account group prepared in conformity
with GAAP. It also includes supporting
schedules necessary to demonstrate
compliance with finance -related legal and
contractual provisions, extensive introductory
material, and a detailed Statistical Section.
COUPON: (a) The annual rate of interest that
a bond's issuer promises to pay the
bondholder on the bond's face value. (b) A
certificate attached to a bond evidencing
interest due on a payment date.
DEALER: A dealer, as opposed to a broker,
acts as a principal in all transactions, buying
and selling for his own account.
31
DEBENTURE: A bond secured only by the
general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are
two methods of delivery of securities:
delivery versus payment and delivery versus
receipt. Delivery versus payment is delivery
of securities with an exchange of money for
the securities. Delivery versus receipt is
delivery of securities with an exchange of a
signed receipt for the securities.
DERIVATIVES: (1) Financial instruments
whose return profile is linked to, or derived
from, the movement of one or more
underlying index or security, and may include
a leveraging factor, or (2) financial contracts
based upon notional amounts whose value is
derived from an underlying index or security
(interest rates, foreign exchange rates,
equities or commodities).
DISCOUNT: The difference between the cost
price of a security and its maturity when
quoted at lower than face value. A security
selling below original offering price shortly
after sale also is considered to be at a
discount
DIVERSIFICATION: Dividing investment
funds among a variety of securities offering
independent returns.
FEDERAL CREDIT AGENCIES: Agencies of
the Federal government set up to supply
credit to various classes of institutions and
individuals, e.g., S&L's, small business firms,
students, farmers, farm cooperatives, and
exporters. The following is a listing:
1. FNMAs (Federal National Mortgaga
Association) - Used to assist the home
mortgage market by purchasing
mortgages insured by the Federal Housing
Administration and the Farmers Home.
Administration, as well as those guaranteed
by the Veterans Administration. They are
issued in various maturities and in minimum
denominations of $10,000. Principal and
Interest is paid monthly.
2: FHLBs (Federal Home Loan Bank Notes
and Bonds) - Issued by the Federal Home
Loan Bank System to help finance the
housing industry. The notes and bonds
provide liquidity and home mortgage
credit to savings and loan associations,
mutual savings banks, cooperative banks,
insurance companies, and mortgage -
lending institutions. They are issued
irregularly for various maturities. The
minimum denomination is $5,000. The
notes are issued with maturities of less
than one year and interest is paid at
maturity. The bonds are issued with
various maturities and carry semi-annual
coupons. Interest is calculated on a 360-
day, 30-day month basis.
3. FLBs (Federal Land Bank Bonds) - Long-
term mortgage credit provided to farmers
by Federal Land Banks. These bonds are
issued at irregular times for various
maturities ranging Ifrom a few months to
ten years. The minimum denomination is
$1,000. They carry semi-annual
coupons. Interest is calculated on a 360-
day, 30 day month basis.
4. FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and
the national agricultural industry. They
are issued monthly with three- and six-
month maturities. The FFCB issues larger
issues (one to ten year) on a periodic
basis. These issues are highly liquid.
32
5. FICBs (Federal Intermediate Credit bank
Debentures) - Loans to lending institutions
used to finance the short-term and
intermediate needs of farmers, such as
seasonal production. They are usually
issued monthly in minimum
denominations of $3,000 with a nine -
month maturity. Interest is payable at
maturity and is calculated on a 360-day,
30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored
entity established in 1970 to provide a
secondary market for conventional home
mortgages. Mortgages are purchased
solely from the Federal Home Loan Bank
System member lending institutions
whose deposits are insured by agencies
of the United States Government. They
are issued for various maturities and in
minimum denominations of $10,000.
Principal and Interest is paid monthly.
Other federal agency issues are Small
Business Administration notes (SBAs),
Government National Mortgage
Association notes (GNMAs), Tennessee
Valley Authority notes (TVAs), and
Student Loan Association notes (SALLIE-
MAEs).
FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to
$100,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest
at which Fed funds are traded. This rate is
currently pegged by the Federal Reserve
through open -market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks
(currently 12 regional banks) which lend
funds and provide correspondent banking
services to member commercial banks, thrift
institutions, credit unions and insurance
companies. The mission of the FHLBs is to
liquefy the housing related assets of its
members who must purchase stock in their
district Bank.
FEDERAL OPEN MARKET COMMITTEE
(FOMC): Consists of seven members of the
Federal Reserve Board and five of the twelve
Federal Reserve Bank Presidents. The
President of the New York Federal Reserve
Bank is a permanent member, while the other
Presidents serve on a rotating basis. The
Committee periodically meets to set Federal
Reserve guidelines regarding purchases and
sales of Government Securities in the open
market as a means of influencing the volume
of bank credit and money.
FEDERAL RESERVE SYSTEM: the central
bank of the United States created by
Congress and consisting of a seven member
Board of Governors in Washington, D.C., 12
regional banks and about 5,700 commercial
banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae):
Securities influencing the volume of bank
credit guaranteed by GNMA and issued by
mortgage bankers, commercial banks,
savings and loan associations, and other
institutions. Security holder is protected by
full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA,
VA or FMHM mortgages. The term
"passthroughs" is often used to describe
Ginnie Maes.
33
LAIF (Local Agency Investment Fund) - A
special fund in the State Treasury which local
agencies may use to deposit funds for
investment. There is no minimum
investment period and the minimum
transaction is $ 5,000, -in multiples of $1,000
above that, with a maximum balance of
$20,000,000 for any agency. The City is
restricted to a maximum of ten transactions
per -month. It offers high liquidity because
deposits can be converted to cash in 24
hours and no interest is lost. All interest is
distributed to those agencies participating on
a proportionate share basis determined by
the amounts deposited and the length of time
they are deposited. Interest is paid quarterly.
The State retains an amount for reasonable
costs of making the investments, not to
exceed one -quarter of one percent of the
earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash
without a substantial loss of value. In the
money market, a security is said to be liquid
if the spread between bid and asked prices is
narrow and reasonable size can be done at
those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from
political subdivisions that are placed in the
custody of the State Treasurer for
investment and reinvestment.
MARKET VALUE: The price at which a
security is trading and could presumably be
purchased or sold.
MASTER REPURCHASE AGREEMENT: A
written contract covering all future
transactions between the parties to
repurchase --reverse repurchase agreements
that establishes each party's rights in the
transactions. A master agreement will often
specify, among other things, the right of the
buyer -lender to liquidate the underlying
securities in the vent of default by the seller -
borrower.
MATURITY: The date upon which the
principal or stated value of an investment
becomes due and payable
MONEY MARKET: The market in which
short-term debt instruments (bills,
commercial paper, banders' acceptances,
etc.) are issued and traded.
OFFER: The price asked by a seller of
securities. (When you are buying securities,
you ask for an offer.) See Asked and Bid.
OPEN MARKET OPERATIONS Purchases and
sales of government and certain other
securities in the open market by the New
York Federal Reserve Bank as directed by the
FOMC in order to influence the volume of
money and credit in the economy. Purchases
inject reserves into the bank system and
stimulate growth of money and credit; sales
have the opposite effect. Open market
operations are the Federal Reserve's most
important and most flexible monetary policy
tool.
PORTFOLIO: Collection of all cash and
securities under the direction of the City
Treasurer, including Bond Proceeds.
PRIMARY DEALER: A group of government
securities dealers who submit daily reports of
market activity an depositions and monthly
financial statements to the Federal Reserve
Bank of New York and are subject to its
informal oversight. Primary dealers include
Securities and Exchange Commission (SEC) -
registered securities broker -dealers, banks
and a few unregulated firms.
34
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its
current market price. This may be the
amortized yield to maturity on a bond the
current income return.
REPURCHASE AGREEMENT (RP OR REPO):
A repurchase agreement is a short-term
investment transaction. Banks buy
temporarily idle funds from a customer by
selling U.S. Government or other securities
with a contractual agreement to repurchase
the same securities on a future date.
Repurchase agreements are typically for one
to ten days in maturity. The customer
receives interest from the bank. The interest
rate reflects both the prevailing demand for
Federal funds and the maturity of the repo.
Some banks will execute repurchase
agreements for a minimum of $100,000 to
$500,000, but most banks have a minimum
of $1,000,000.
REVERSE REPURCHASE AGREEMENTS - A
reverse repurchase agreement is the opposite
of a repurchase agreement. The City loans a
security to a bank in exchange for cash. The
City agrees to pay off the loan with interest
on a future date.
SAFEKEEPING: A service to customers
rendered by banks for a fee whereby
securities and valuables of all types and
descriptions are held in the bank's vaults for
protection.
SECONDARY MARKET: A market made for
the purchase and sale of outstanding issues
following the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect
investors in securities transactions by
administering securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital
Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMAS, SLMA, etc.) And Corporations
which have imbedded options (e.g., call
features, step-up coupons, floating rate
coupons, derivative -based returns) into their
debt structure, Their market performance is
impacted by the fluctuation of interest rates,
the volatility of the imbedded options and
shifts in the Shape of the yield curve.
SURPLUS FUNDS: Section 53601 of the
California Government Code defines surplus
funds as any money not required for
immediate necessities of the local agency.
The City has defined immediate neccesities
to be payment due within one week.
TREASURY BILLS: Issued weekly with
maturity dates up to one year. They are
issued and traded on a discount basis with
interest figured on a 360-day basis, actual
number of days. They are issued in amounts
of $10,000 and up, in multiples of $5,000.
They are a highly liquid security.
TREASURY BONDS: Long-term coupon -
bearing U.S. Treasury securities issued as
direct obligations of the U.S. Government
and having initial maturities of more than 10
years.
35
TREASURY NOTES: Medium -term coupon -
bearing U.S. Treasury securities issued as
direct obligations of the U.S. Government
and having initial maturities from two to 10
years.
UNIFORM NET CAPITAL RULE: Securities
and Exchange Commission requirement that
member firms as well as. nonmember broker -
dealers in securities maintain a maximum
ratio of indebtedness to liquid capital of 15
to 1; also called net capital rule and net
capital ratio.
Indebtedness covers all money owed to a
firm, including margin loans and
commitments to purchase securities, one
reason new public issues are spread among
members of underwriting syndicates. Liquid
capital includes cash and assets easily
converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The
State of California has adopted this Act. The
Act contains the following sections: duty of
care, diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule,
and application.
YIELD: The rate of annual income return on
an investment, expressed as a percentage.
(a) INCOME YIELD is obtained by dividing the
current dollar income by the current market
price for the security. (b) NET YIELD or
YIELD TO MATURITY is the current income
yield minus any premium above par of plus
any discount from par in purchase price, with
the adjustment spread over the period from
the date of purchase to the date of maturity
of the bond.
36
INVESTMENT ADVISORY BOARD Business Session Item No. C
Meeting Date: March 11, 1998
CMTA Conference - April 22 - 24, 1998
Sacramento, California
BACKGROUND:
The Annual California Municipal Treasurers Association Conference will be held
April 22 - 24 in Sacramento. Account No. 101-151-637-000 Travel and Training
contains $1400.00 for two Investment Advisory Board Members and $700.00 for
Staff. Last year the conference was in Palm Springs and several Board Members
attended sessions of the conference.
Attached please find the registration material and conference outline.
*0101 0h ij ; •
Selec up to two members to attend the CMTA Conference.
ohn M. Falcon4r, Finance Director
ATTACHMENT NO. 1
CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION
Annual Conference
April 20 - 24, 1998
Monday, April 20,
1998
9:00 -12:00
Board Meeting
12:00 -1:00
Board Lunch
1:00 - 4:45
Pre -conference workshop: Understanding and Working with the Broker/Dealer
System - "How the Trading Floor Operates"
Speakers: Robert Matelwich, Government Trading, Solomon Smith Barney
Craig Cloud, Short -Term Government Trader, Paine Webber
Don Kryskowski, V.P. Sr. Trader, BancAmerica Robertson Stephens
Moderator: Dennis Yacobozzi, President, United American Capital Corporation
6:00 - 7:00
Board Reception
7:00 -
Board Dinner
Tuesday, April 21, 1998
7:00 8:00 Breakfast
8:00 -11:00 Pre -Conference (Continued)
Broker Dealer Panel: Primaries vs Regionals
Speakers: Bill Blackwill, Solomon Smith Barney
Keith Williams, Paine Webber
Debbie Higgins, Higgins Capital Management
Denny Meadors, Raymond James and Assoc. .
Moderator: Dennis Yacobozzi, President, United American Capital Corporation
11:00 - 12:00 Broker-Dealer/Treasurer Panel: "Developing the Relationship"
Panelists: Bill Blackwill, Solomon Smith Barney
Guy Boccasile, Investment Officer, City of Ontario
Ken Herman, BancAmerica Robertson Stephens,
Janice Erickson, Deputy Treasurer, San Diego Port District
Moderator: Dennis Yacobozzi, President, United American Capital Corporation
12:00 Lunch on your Own
FREE AFTERNOON
Activities:
Golf Tournament
Marshall Gold Discovery State Park Tour
LAIF Tour
6:00 - 7:00 Early Bird Reception
7:00 Free Evening
Wednesday, April 22, 1998
8:00 - 9:00
Breakfast
9:00 - 9:30
Opening Session
9:30 - 10:30
Motivational Speaker: Brigadier General Steve Ritchie
Moderator: Ron Howard, CCMT, President, CMTA, Director of Finance, City of Concord
10:30 -10:45
Break
10:45 -11:45
Business Session
11:45 -12:00
Certification Awards
12:00 -1:45
Lunch - Keynote Speaker: Mitch Held, Solomon Smith Barney Economist
Moderator: Dale Belcher, CCMT, Vice President, CMTA, Treasurer City of Oxnard
2:00 - 3:00
Bank Mergers - What do they Mean to California Treasurers?
Speaker: Fred Furlong, San Francisco Federal Reserve Bank
Moderator: Carole Gierhart CCMT, President -Elect, CMTA, Treasury Manager, City of
Oceanside
3:00 - 3:15 Break
3:15 - 4:00 Concurrent Sessions:
A. Prop. 218 - One Year Later
Speaker: Sam Sperry, Orrick, Herrington & Sutcliffe
Moderator: Lydia Lara, Deputy Treasurer, City of Sacramento
B. Legislative Process
Speaker: Mike Reynolds CCMT, Legislative Chair, CMTA, Treasurer, City of
Redlands
Moderator: Robert Groeber CCMT, Assistant Finance Director, City of Visalia
4:10 - 5:10 Concurrent Sessions:
-A. GIS Systems - Show me the Money!
Speakers: Mike Allen, Information Services Manager, City of Visalia
Dick Lord, GIS Manager, City of Visalia
Moderator:John Holt, Financial Analyst, City of Visalia
B. Procurement Card: A Practical Solution for Low Value, High Volume Transactions
Speaker: Alice Flissinger, Manager, CAL -Card Program, State of California
Moderator: Janice Erickson CCMT, Deputy Treasurer, San Diego Port District
6:00 - 7:00 Reception
7:00 Free Evening
Thursday, April 23, 1998
8:00 - 9:00 New Treasurer Breakfast
9:00 - 10:00 Concurrent Sessions:
A. Finance Directors are from Venus, Treasurers are from Mars
Speakers: Al Holliman, Director of Finance, City of Vista
Michael Reynolds CCMT, Treasurer, City of Redlands
Moderator:Adair Most CCMT, Finance Director/Treasurer, City of Victorville
B. Making "Cents" of Portfolio Management
Speaker: Kay Chandler, Chandler Liquid Asset Management
Moderator: Linda Lorenzetti CCMT, Deputy Treasurer, City of Concord
10:00 - 10:45 Concurrent Sessions:
A. GASB 31: Are you Ready for Implementation?
Speaker: JerryRogers, CCMT, Dep. Finance Dir./Treasurer, City of Riverside
Moderator: Dale Nielson, Finance Manager, City of Vista
B. Callable Securities, Do I or Don't I?
Speaker: Glenn Hosokawa, Investment Officer City of Sacramento
Moderator: Bonnie Gilmore, Investment Analyst, City of Santa Rosa
10:45 - 11:00 Break
11:00 - 12:00 Concurrent Sessions:
A. Developing a Commercial Paper Program - A Great Solution for your Short-term
Financing Needs
Speakers: Russell Goings, III, First Albany Corporation
Kathleen Leak, Orrick, Herrington & Sutcliffe
Moderator: Robert Groeber, CCMT, Assistant Finance Director, City of Visalia
B. Real Time Market Information Systems - Can I afford to live without one?
Speaker: Telerate, Bloomberg, DTN Market Systems
Moderator: Martin Bridges, Assistant Treasurer San Diego County Water Authority
12:00 - 1:45 Lunch - Keynote Speaker: Mary Ellen Withrow, United States Treasurer
Moderator: Carole Gierhart, CCMT, President -Elect CMTA, Treasury Manager,
City of Oceanside
2:00 - 3:00 Leadership Skills for the 21 Century
Speaker: Linda Shoob
Moderator: Janice Erickson, San Diego Port District
3:00 - 3:15 Break
3:15 - 4:00 Nuts and Bolts
A. Treasurers and Treasury Staff
Moderator: Dale Belcher, CCMT, Treasurer, City of Oxnard
B. Commercial Associates:
Moderator: Les Wells, Union Bank of California
4.00 - 4:30 Nuts and Bolts Wrap -Up
Treasurers and Commercial Associates Together
6:00 - 7:00 President's Reception
7:00 - ? Installation Banquet
Friday. April 24. 1998
8:00 - 9:00 Breakfast
9:00 - 10:00 Personal Liability for Treasurers - An Update on the Orange County Prosecution
Speaker: Matt Anderson, Senior Deputy District Attorney, Orange County
Prosecutor's Office
Moderator: Kurt Mowery, Deputy Treasurer, City of Irvine
-10:00 - 11:00 -Regulatory Issues for Broker/Dealers
Speaker: To be Announced
Moderator: Adair Most, Finance Director/Treasurer, City of Victorville
11:00 - 11:15 Break
11:15 - 12:00 Roundtable Discussions
Moderator: Mike Reynolds CCMT, Treasurer, City of Redlands
1. Policies/Reports - Jean Ruth
2. Bank RFP Process - Kurt Mowery
3. Certification Process - Judy Oltman
4. LAIF - Pat Beale
5. TRAN/TRAN POOLS - Kathy Bando
12:00 - 2:00 Board Meeting / Lunch
INVESTMENT ADVISORY BOARD February 11, 1998
CORRESPONDENCE & WRITTEN MATERIAL A
Month End Cash Report - February 1998
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances, ) but would report in a timely fashion
selected cash balances.
• 1lL_10 Q1
Information item only.
Jdhn M. Falconer, Finance Director
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INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
March 11, 1998
Pooled Money Investment Board Report
1 •
- LICC I�
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for December, 1997 is included in the
agenda packet.
• it _ ZP A•
Receive & File
M. Falconer, Finance Director
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY EWESTMENT BOARD REPORT
DECEMBER 1997
Table of Contents
SUMMARY....N....NN...N................NN.N.NN.......NN............N...................................1
SELECTED INVESTMENT DATA ........... N.............................................N........2
PORTFOLIO COMPOSITION...
INVESTMENT TRANSACTIONS................N......N................... N....N.........N......4
TIME DEPOSITS............................................................................................NN20
DEMAND BANK DEPOSITS............................................................................23
POOLED MONEY INVESTMENT BOARD DESIGNATION ...N................24
POOLED MONEY IIWESITHENT ACCOUNT
SUMM"Y OF INVESTMENT DATA
A COMPARISON OF DECEMBER 1997 WITH DECEMBER 1996
(Dollars in Thousands)
Average Daily Portfolio
$27,724,618
$27,592,674
+ $131,944
Accrued Earnings
$135,263
$130,624
+ $4,639
Effective Yield
5.744
5.574
+ .17
Average Life --Month End (in days)
201
213
-12
Total Security Transactions
Amount
$233,303,772
$16,123,293
+ $73,18%479
Number
519
379
+ 140
Total Time Deposit Transactions
Amount
$643,490
$131,900
+ $511,590
Number
56
23
+ 33
Average Workday Investment Activity
$1,088,512
$774,057
+ $314,455
Prescribed Demand Account Balances
For Services
$156,665
$188,668
- $32,003
For Uncollected Funds
$1542167
$154,616
1- $449
—1—
MATT FONG
STATE TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION
SELECTED IlWESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED)
Change in
December 31,1997 Percent From
th
Tyne of Security
Amount
Percent
Previous glum
Governments
Bills
$1,943,104
.6.75
+ 2AI
Bonds
0
0
0
Notes
5,290,669
1838
- 2.66
Strips
739184
.25
- .02
Total Governments
7,3069957
2538
- .27
Federal Agency Coupons
$1,7089582
5.93
- Al
Certificates of Deposit
614979887
22.57
- 32
Bank Notes
9309000
3.23
- .18
Bankers Acceptances
321,640
1.12
- .02
Repurchases
Federal Agency Discount Notes
0
957,179
0
332
0
+ .96
Time Deposits
19072,795
3.73
+ •04
GNMA's
2,643
.01
0
Commercial Paper
7481,904
25.29
+ 4.09
FHLMC
25,763
.09
- .01
Corporate Bonds
1,451,854
5.04
- .43
Pooled Loans
19430,962
4.97
- 1.51
GF Loans
0
0
- 2.71
Reversed Repurchases
-197,332
-.68
- .77
Total, All Types
$281,7909834
100
EWESTMENT ACTIVITY
December 1997
November 1997
Number
Amount
Numbir
Amount
Pooled Money
519
$ 2393031,772
346
$ 159217,885
Other
45
$ 671,022
24
$ 4639405
Time Deposits
56
$ 6439490
28
$ 5189200
TOTALS
620
$ 24,618,284
398
$ 16,199,490
PMIA Monthly Average
Effective Yield
5.744
5.715
Year to Date Yield for
Last Day of Month
5.707
5.699
—2—
Commercial
Paper
25.29%
Ban
Accep
1.1
Pooled Money Investment Account 12/31//97
Portfolio Composition
$28.8 Billion
Loans Reverses
Corporate Bonds 4.97% -0 68%
CD's/BN's
25.80%
;asuries
5.38%
Time Deposits
3.73%
Artgages
0.10%
ncies
?5%
UlTreasuries
IS Time Deposits
■ Mortgages
�MAgencies
■ CD's/BN's
■ Bankers Acceptances
® Commercial Paper
® Corporate Bonds
0 Loans
® Reverses
-3-
12/01/97 SALE
MTN (FR) US Bancorp 6.150% 11/15/99 5.518 $5,000 18 86,489.58 5.906
REDEMPTION
CP
Amer Exp
12/01 /97
5.560
50,000
6
46,333.33
5.642
CP
Amer Exp
12/01 /97
5.560
50,000
6
46,333.33.
5.642
CP
Amer EXp
12/01 /97
5.560
50,000
6
46,333.33
5.642
CP
Heller
12/01/97
5.950
50,000
6
49,583.33
6.038
CP
Heller
12/01 /97'
5.950
50,000
6
49,583.33
6.038
CP
Country
12/01 /97
5.530
40,000
87
534,566.67
5.682
MTN
FMCC
8.000% 12/01 /97
5.700
25,750
720
2,969,375.56
5.767
PURCHASE
CP
GECC
12/02/97
5.800
50,000
CP
GECC
12/02/97
5.800
50,000
CP
GECC
12/02/97
5.800
50,000
CP
GECC
12/02/97
5.800
50,000
CP
GECC
12/02/97
5.800
50,000
CP
GECC
12/02/97
5.800
50,000
MTN (FR)
GMAC
5.845% 02/24/00
4.193
25,000
12/02/97 REDEMPTION
BA
Union
12/02/97
5.500
20,000
90
275,000.00
5.654
BA
B/A
12/02/97
5.520
10,000
172
263,733.33
5.748
CD
Soc Gen
5.580%
12/02/97
5.570
50,000
109
843,261.22
5.647
CD
Soc Gen
5.580%
12/02/97
5.570
50,000
109
843,261.22
5.647
CD
Nova Scotia
5.600%
12/02/97
5.580
50,000
109
844,800.31
5.657
CD
Nova Scotia
5.600%
12/02/97
5.580
50,000
109
844,800.31
5.657
CD
UB Calif
5.680%
12/02/97
5.680
50,000
153
1,207,000.00
5.758
CP
Assoc
12/02/97
5.540
37,800
1.8
46,536.00
5.623
CP
Assoc
12/02/97
5.540
50,000
8
61,555.56
5-.623
CP
FMCC
12/02/97
5.540
50,000
8
61,555.56
5.623
CP
FMCC
12/02/97
5.540
50,000
8
61,555.56
5.623
CP
FMCC
12/02/97
5.540
50,000
8
61,555.56
5.623
CP
FMCC
12/02/97
5.540
50,000
8
61,555.56
5.623
CP
Household
12/02/97
5.580
50,000
7
54,250.00
5.663
CP
GMAC
12/02/97
5.600
50,000
7
54,444.44
5.683
CP
GMAC
12/02/97
5.600
50,000
7
54,444.44
5.683
CP
Bear
12/02/97
5.530
50,000
134
1,029,194.45
5.724
CP
Lehman
12/02/97
5.560
50,000
152
1,173,777.78
5.772
CP
Lehman
12/02/97
5.560
50,000
152
1,173,777.78
5.772
CP
GECC
12/02/97
5.800
50,000
1
8,055.56
5.881
CP
GECC
12/02/97
5.800
50,000
1
8,055.56
5.881
CP
GECC
12/02/97
5.800
50,000
1
8,055.56
5.881
CP
GECC
12/02/97
5.800
50,000
1
8,055.56
5.881
CP
-GECC
12/02/97
5.800
50,000
1
8,055.56
5.881
CP
GECC
12/02/97
5.800
50,000
1
8,055.56
5.881'
—4—
12/02/97 PURCHASE
BA
B/A
05/18/98
5.620
38,500
BA
B/A
05/02/98 '
5.620
32,000
BA
B/A
05/22/98
5.620
49,000.
BA
Bk of NYC
05/29/98
5.620
5,000
BA
B/A
05/29/98
5.620
15,000
CD
World
5.650%
12/30/97
5.650
50,000
CD
World
5.650%
12/30/97
5.650
50,000
CD
World
5.650%
12/30/97
5.650
50,000
CD
Svenska
5.790%
02/27/98
5.780
50,000
CD
Svenska
5.790%
02/27/98
5.780
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GECC
12/03/97
5.630
50,000
CP
GMAC
12/08/97
5.650
47,000
CP
Hertz
12/09/97
5.640
25,000
CP
Heller
12/10/97
6.000
50,000
CP
Heller
12/10/97
6.000
50,000
CP
Conagra
01 /30/98
5.880
18,025
CP
SRAC
03/03/98
5.730
50,000
CP
SRAC
03/06/98
5.730
50,000
PURCHASErJ
Treas
Bill
05/14/98
5.630
2,242
Treas
Bill
05/14/98
5.630
50,000
Treas
Note
5.875%
01 /31 /99
5.600
50,000
Treas
Note
6.250%
03/31/99
5.600
248
Treas
Note
6.250%
03/31/99
5.600
50,000
Treas
Note
5.875%
08/31/99
5.610
30,309
Treas
Note
7.500%
11/1*5/01
5.610
28,300
Treas
Note
6.500%
05/31/02
5.610
40,181
12/03/97 REDEMPTION
BA
B/A
12/03/97
5.520
8,000
173
212,213.34
5.749
CP
GECC
12/03/97
5.630
50,000
1
7,816.44
5.709
CP
GECC
12/03/97
5.630
50,000
1
7,819.44
5.709
CP
GECC
12/03/97
5.630
50,000
1
7,819.44
5.709
CP
GECC
12/03/97
5,630
50,000
1
7,819.44
5.709
CP
GECC
12/03/97
5.630
50,000
1
7,819.44
5.709
CP
GECC
12/03/97
5.630
50,000
1
7,819.44
5.709
CP
Merrill
12/03/97
5.650
25,000
7
27,465.28
5.734
CP
Merrill
12/03/97
5.650
50,000
7
54,930.56
5.734
CP
GMAC
12/03/97
5.600
50,000
8
62,222.22
5.684
CP
GMAC
12/03/97
5.600
50,000
8
62,222.22
5.684
—5—
12/03/97 SALE sJ
Treas
Bill
Treas
Bill
Treas
Note
Treas
Note
Treas
Note
Treas
Note
Treas
Note
Treas
Note
RRS
Treas
Bill
PURCHASE
y/
CD
CIBC
CD
Stand Chart
PURCHASE
CD
Rabo
CD
Svenska
CD
WestDeut
CD
Soc Gen
CD
Soc Gen
CID
GECC
CID
GECC
CID
GECC
CID
GECC
CP
GECC
CID
GECC
CID
Merrill
CID
Hertz
CID
FMCC
CID
FMCC
12/04/97 REDEMPTION
BA
B/A
CID
GECC
CID
GECC
CID
GECC
CID
GECC
CID
GECC
CID
GECC
CID
Baxter
Disc Note
FNMA
05/14/98
5.630
2,242
1
335.45
5.708
05/14/98
5.630
50,000
1
7,483.99
5.708
5.875%
01 /31 /99
5.600
50,000
1
7,772.96
5.677
6.250%
03/31/99
5.600
248
1
38.27
5.677
6.250%
03/31 /99
5.600
50,000
1
7,744.33
5.677
5.875%
08/31/99
5.610
30,309
1
4,703:98
5.687
7.500%
11/15/01
5.610
28,300
1
4,586.02
5.687
6.500%
05/31/02
. 5.610
40,181
1
.6,293.33
5.687.
02/05/98 5.220
5.780% 02/05/98 5.780
5.810% 02/05/98 5.800
5.690%
03/02/98
5.770
5.810%
03/02/98
5.770
5.780%
03/03/98
5.780
5.800%
03/03/98
5.790
5.800%
03/03/98
5.790
12/04/97
5.620
12/04/97
5.620
12/04/97
5.620
12/04/97
5.620
12/04/97
5.620
12/04/97
5.620
02/09/98
5.750
02/09/98
5.810
02/03/98
5.740
02/03/98
5.740
50,000
30,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
25,000
25,000
50,000
50,000
12/04/97
5.480
20,000
90
274,000.00
5.633
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.620
50,000
1
7,805.56
5.698
12/04/97
5.600
48,000
37
276,266.67
5.710
12/04/97
5.440
30,000
155
702,666.67
5.647
12/04/97 PURCHASE
CD
Nova Scotia
5.780%
03/02/98
5.780
50,000
CD
Montreal
5.780%
03/09/98
5.780
50,000
CD
Montreal
5.780%
03/09/98.
5.780
50,000
CP
FMCC
12/08/97
5.510
50,000
CP
FMCC
12/08/97
5.510
50,000
CP
FMCC
12/08/97
5.510
50,000
CP
Country
02/06/98
5.770
49,200
CP
ConAgra
01/16/98
5.950
20,000
CP
Salomon
02/09/98
5.730
50,000
CP
Salomon
02/09/98
5.730
50,000
CP
Morgan
02/11/98
5.750
50,000
CP
Morgan
02/11/98
5.750
50,000
CP
Bkrs Trst
03/09/98
5.720
5,000
CP
Bkrs Trst
03/09/98
5.720
50,000
CP
Bkrs Trst
03/09/98
5.720
50,000
12/05/97 REDEMPTION
BA
B/A
12/05/97
5.520
8,000
175
214,666.66
5.750
CD
Rabo
5.590%
12/05/97
5.550
50,000
106
817,427.69
5.628
CP
GECC
12/05/97
5.520
13,000
11
21,926.67
5.606
CP
GECC
12/05/97
5.520
50,000
11'
84,333.33
5.606
CP
GECC
12/05/97
5.520
50,000
11
84,333.33
.5.606
CP
GECC
12/05/97
5.520
50,000
11
84,333.33
5.606
CP
GMAC
12/05/97
5.600
25,000
11
42,777.78
5.687
CP
GMAC
12/05/97
5.600
50,000
11
85,555.56
5.687
CP
Salomon
12/05/97
5.660
50,000
92
723,222.00
5.822
CP
Salomon
12/05/97
5.660
50,000
92
723,222.00
-5.822
CP
Merrill
12/05/97
5.520
50,000
105
805,000.00
5.688
CP
Merrill
12/05/97
5.520
50,000
105
805,000.00
5.688
CP
Merrill
12/05/97
5.520
50,000
105
805,000.00
5.688
FNMA
5.400%
12/05/97
5.548
50,000
365
2,771,030.95
5.549
RRS
Treas Bill 03/05/98 5.190 50,000
PURCHASE g/
Disc Note FHLMC 03/05/98 5.530 50,000
Disc Note FNMA 03/05/98 5.530 50,000
PURCHASE
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
—7—
12/05/97 PURCHASE,
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
CP
GECC
12/08/97
5.480
50,000
CP
GMAC
12/08/97
5.480
50,000
CP
GMAC
12/08/97
5.480
50,000
CP
GMAC
12/08/97
5.480
50,000
CP
GMAC
12/08/97
5.480
50,000
CP
Country
12/29/97
5.600
50,000
12/08/97 REDEMPTION
BA
B/A
12/08/97
5.520
16,000
178
436,693.33
5.753
CP
GECC
12/08/97
5.480
50,006
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GECC
12/08/97
5.480
.50,000
3
22,833.33
5.558
CP
GMAC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GMAC
12/08/97
5,480
50,000
3
22,833.33
5.558
CP
GMAC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
GMAC
12/08/97
5.480
50,000
3
22,833.33
5.558
CP
FMCC
12/08/97
5.510
50,000
4
30,611.11
5.589
CP
FMCC
12/08/97
5.510
50,000
4
30,611.11
5.589
CP
FMCC
12/08/97
5.510
50,000
4
30,611.11
5.589
CP
FMCC
12/08/97
.5.510
50,000
4
30,611.11
5.589
CP
GMAC
12/08/97
5.650
47,000
6
44,258.33
5.733
CP
GECC
12/08/97
5.580
50,000
14
108,500.00
5.669
CP
GECC
12/08/97
5.580
50,000
14
108,500.00
5.669
CP
Hertz
12/08/97
5.610
30,000
31
144,925.00
5.715
PURCHASE
FMCC (CB)
7.250% 05/15/99
6.050
14,952
CP
GMAC
12/09/97
5.530
50,000
CP
GMAC
12/09/97
5.530
50,000
CP
Hertz
12/10/97
5.560
50,000
CP
Morg Stan
03/09/98
5.730
35,000
CP
Morg Stan
03/09/98
5.730
50,000
PURCHASE rJ
Treas
Note
5.750%
11/30/02
5.520
6,037
Treas
Note
5.750%
11/30/02
5.520
.50,000
Treas
Note
5.750%
11/30/02 ,
5.520
50,000
Treas
-Note
5.750%
11/30/02
5.520
50,000
Treas
Note
5.750%
11/30/02
5.520
50,000
Treas
Note
5.750%
11/30/02
5.520
50,000
—8—
12/09/97 REDEMPTION
CP
GMAC
12/09/97
5.530
50,000
1
7,680.56
5.607
CP
GMAC
12/09/97
5.530
50,000
1
7,680.56
5.607
CP
Hertz
12/09/97
5.640
25,000
7
27,416.67
5.724
SALE sJ
Treas
Note
5.750%
11/30/02
5.520
6,037
1
.903.90
5.596
Treas
Note
5.750%
11/30/02
5.520
50,000
1
7,485.89
5.596
Treas
Note
5.750%
11/30/02
5.520
50,000
1
7,485.89
5.596
Treas
Note
5.750%
11/30/02
5.520
50,000
1
7,485.89
5.596
Treas
Note
5.750%
11/30/02
5.520
50,000
1
7,485.89
5.596
Treas
Note
5.750%
11/30/02
5.520
50,000
1
7,485.89
5.596
PURCHASE
CD
CIBC
5.813%
02/18/98
5.813
25,000
CD
CIBC
5.813%
02/18/98
5.813
50,000
CP
GMAC
12/10/97
5.480
50,000
CP
GMAC
12/10/97
5.480
50,000
CP
GMAC
12/10/97
5.480
50,000
CP
FMCC
12/10/97
5.430
50,000
12/10/97 REDEMPTION
BA
B/A
12/10/97
5.470
23,000
89
311,030.29
5.621
CD
BN Paris
5.700%
12/10/97
5.690
25,000
180
711,284.58
* 5.769
CD
BN Paris
5.700%
12/10/97
5.690
50,000
180
1,422,569.16
5.769
CP
GMAC
12/10/97
5.480
50,000
1
7,611.11
5.556
CP
GMAC
12/10/97
5.480
50,000
1
7,611.11
5.556
CP
GMAC
12/10/97
5.480
50,000
1
7,611.11
5.556
CP
FMCC
12/10/97
5.430
50,000
1
7,541.67
-5.506
CP
Hertz
12/10/97
5.560
50,000
2
15,444.44
5.638
CP
Heller
12/10/97
6.000
50,000
8
66,666.67
6.091
CP
Heller
12/10/97
6.000
50,000
8
66,666.67
6.091
CP
Text Fin
12/10/97
5.710
31,550
37
185,154.68
5.823
MTN
PG&E
5.390%
12/10/97
7.290
10,000
1146
2,214,613.89
7.555
PURCHASE
CD
World
5.540%
12/30/97
5.560
50,000
CD
Soc Gen
5.860%
03/09/98
5.800
25,000
CP
Heller
12/19/97
5.900
50,000
CP
Heller
12/19/97
5.900
50,000
CP
Hertz
02/09/98
5.800
50,000
CP
Merrill
03/09/98
5.750
50,000
12/11/97 SALE y/
CD
Hypo
5.570%
12/11/97
5.560
50,000
86
664,126.77
5.637
CD
Stnrd Ch
5.600%
12/11/97
5.590
50,000
90
698,767.23
5.667
CD
Stnrd Ch
5.600%
12/11/97
5.590
.50,000
90
698,767.23
5.667
CP
Morg Stan
12/11/97
5.500
50,000
90
687,500.00
5:654
CP
Morg Stan
12/11/97
5.500
50,000
90
687,500.00
5.654
CP
Morg Stan
.12/11/97
5.500
50,000
90
687,500.00
5.654
CP
Morg Stan
12/11/97
5.500
50,000
90
687,500.00
5.654
REDEMPTION
Treas
Bill
12/11/97
5.185
50,000
353
2,542,090.28
5.538
Treas
Bill
12/11/97
5.185
50,000
356
2,563,694.44
5.540
Treas
Bill
12/11/97
5.185
50,000
356
2,563,694.44
5.540
Treas
Bill
12/11/97
5.185.
50,000
356
2,563,694.44
5.540
Treas
Bill
12/11/97
5.185
50,000
356
2,563,694.50
5.540
Treas
Bill
12/11/97
5.185
50,000
356
2,563,694.45
5.540
Treas
Bill
12/11/97
5.195
50,000
356
2,568,639.00
5.552
PURCHASE
CD
World
5.500%
12/30/97
.5.520
40,000
CP
GECC
12/26/97
5.500
50,000
CP
GECC
12/26/97
5.500
50,000
' CP
GECC
12/26/97
5.500
50,000
CP
GECC
12/26/97
5.500
50,000
CP
GMAC
12/26/97
5.510
50,000
CP
Amer Exp
12/26/97
5.510
50,000
CP
Amer Exp
12/26/97
5.510
50,000
CP
Unocal
12/29/97
5.630
10,000
RRP
Treas
Bill
12/11/97
5.050
50,000
r
90
(623,398.83)
-5.120
Treas
Bill
12/11/97
5.050
50,000
90
(623,398.83)
-5.120
Treas
Bill
12/11/97
5.505
50,000
90
(621,465.63)
-5.120
Treas
Bill
12/11/97
5.505
50,000
90
(621,465.63)
-5.120
Treas
Bill
12/11/97
5.505
50,000
90
(621,465.63)
-5.120
Treas
Bill
12/11/97
5.505
50,000
90
(621,465.63)
-5.120
Treas
Bill
12/11/97
5.050
50,000
86
-(596,052.62)
-5.120
12/12/97 REDEMPTION
CP Merrill 12/12/97 5.520 50,000 147 1,127,000.00 5.725
—10—
12/12/97 PURCHASE
CD
Bayer Lnds
5.760% 02/11 /98
5.740
45,000
CD
BN Paris
5.750% 02/11/98
5.730
50,000
CP
Unocal
12/29/97
5.650
18,000
CP
GMAC
02/10/98
5.750
50,000
CP
Morg Stan
03/02/98
5.730
50,000
12/15/97 REDEMPTION
FHLB (FR) 4.088% 12/15/97 4.182 25,000 1826 5,972,920.14 4.795
PURCHASE
CP
GMAC
12/18/97
5.600
50,000
CP
GMAC
12/18/97
5.600
50,000
CP
GMAC
12/16/97
5.900
50,000
CP
GMAC
12/16/97
5.900
50,000
CP
GMAC
12/16/97
5.900
50,000
CP
GMAC
12/16/97
5.900
50,000
CP
GMAC
12/16/97
5.900
50,000
CP
FMCC
12/18/97
5.680
50,000
CP
FMCC
12/18/97
5.680
50,000
CP
GECC
12/16/97
5.950
50,000
CP
GECC
12/16/97
5.950
50,000
CP
GECC
12/16/97
5.950
50,000
CP
GECC
12/16/97
5.950
50,000
12/16/97 REDEMPTION
CP
GECC
12/16/97
5.950
50,000
1
8,263.89
6.033
CP
GECC
12/16/97
5.950
50,000
1
8,263.89
6.033
CP
GECC
12/16/97
5.950
50,000
1
8,263.89
6.033
CP
GECC
12/16/97
5.950
50,000
1
8,263.89
6.033
CP
GMAC
12/16/97
5.900
50,000
1
8,194.44
5.982
CP
GMAC
12/16/97
5.900
50,000
1
8,194.44
5.982
CP '
GMAC
12/16/97
5.900
50,000
1
8,194.44
5.982
CP
GMAC
12/16/97
5.900
50,000
1
8,194.44
5.982
PURCHASE
CP
GMAC
12/17/97
5.700
50,000
CP
GMAC
12/17/97
5.700
50,000
CD
BN Paris
5.790% 02/18/98
5.780
50,000
CD
BN Paris
5.790% 02/18/98
5.780
10,000
CP
Merrill
01/13/98
5.900
50,000
CP
Merrill
01 /13/98
5.900
50,000
CP
-Merrill
01 /13/98
5.900
50,000
CP
Baxter
03/26/98
5.900
20,000
CP
Baxter
03/27/98
5.900
20,000
—11—
12/16/97 PURCHASE
CD
Nova Scot
5.780%
02/18/98
5.780
50,000
CP
Morg Stan
03/27/98
5.730
50,000
CP
Morg Stan
03/27/98
5.730
50,000
CP
Morg Stan
03/27/98
5.730
50,000
CP
Morg Stan
03/27/98
5.730
50,000
CD
Stand Chart
5.790%
02/18/96
5.780
50,000
CD
Stand Chart
5.790%
02/18/98
5.780
50,000
12/17/97 REDEMPTION
CP
GMAC
12/17/97
5.700
50,000
1
7,916.67
5.780
CP
GMAC
12/17/97
5.700
50,000
1
7,916.67
5.780
PURCHASE
CP
GECC
03/03/98
5.720
50,000
CP
GECC
03/03/98
5.720
50,000
CP
GECC
03/03/98
5.720
50,000
BN
NationsBk
5.780%
02/26/98
5.780
50,000
BN
NationsBk
5.780%
02/26/98
5.780
50,000
CP
Textron
12/18/97
5.850
25,000
CP
GMAC
12/18/97
5.810
50,000
CP
GMAC
12/18/97
5.810
50,000
CP
GMAC
12/18/97
5.810
50,000
CP
GMAC
12/18/97
5.810
50,000
CP
Country
01 /14/98
5.980
21,160
CP
JP Morgan
02/10/98
5.750
10,000
CP
JP Morgan
02/10/98
5.750
50,000
CP
GECC
02/26/98
5.720
50,000
CP
GECC
02/26/98
5.720
50,000
CP
GECC
05/13/98
5.650
50,000
CP
GECC
05/13/98
5.650
50,000
Treas
Bill
12/10/98
5.193
50,000
Treas
Bill
12/10/98
5.193
50,000
12/18/97 REDEMPTION
CP
Textron
12/18/97
5.850
25,000
1
4,062.50
5.932
CP
GMAC
12/18/97
5.810
50,000
1
8,069.44
5.891
CP
GMAC
12/18/97
5.810
50,000
1
8,069.44
5.891
CP
GMAC
12/18/97
5.810
50,000
1
8,069.44
5.891
CP
GMAC
12/18/97
5.810
50,000
1
8,069.44
5.891
CP
FMCC
12/18/97
5.680
50,000
3
23,666.67
5.761
CP
FMCC
12/18/97
5.680
50,000
3
23,666.67
5.761
CP
GMAC
1-2/18/97
5.600
50,000
3
23,333.33
5.680
CP
GMAC
12/18/97
5.600
50,000
3
23,333.33
5.680
—12—
12/18/97 PURCHASE
FNMA
5.770%
12/17/98
5.800
50,000
BA
Bk of NYC
06/08/98
5.570
11,000
CID
GECC
12/19/97
5.700
50,000
CP.
GECC
12/19/97
5.700
50,000
CID
GECC
12/19/97
5.700
50,000
CID
ConAgra
01 /06/98
6.210
20,000
CID
SRAC
01/08/98
6.000
50,000
CP
Text Fin
01 /30/98
6.170
50,000
CID
Lehman
02/26/98
5.800
50,000
CID
Lehman
02/26/98 '
5.800
50,000
CID
GECC
05/27/98
5.620
50,000
CID
GECC
05/27/98
5.620
50,000
CID
GMAC
05/29/98
5.620
35,000
CID
GMAC
05/29/98
5.620
50,000
Disc Note
FNMA
06/30/98
5.510
50,000
Disc Note
FNMA
06/30/98
5.510
50,000
Treas
Bill
12/10/98
5.185
50,000
Treas
Bill
12/10/98
5.185
50,000
Treas
Bill
12/10/98
5.185
50,000
Treas
Bill
12/10/98
5.185
50,000
Treas
Bill
12/10/98
5.185
50,000
Treas
Bill
12/10/98
5.185
50,000
12119/97 REDEMPTION
CID
GECC
12/19/97
5.700
50,000
1 7,916.67 5.780
CID
GECC
12/19/97
5.700
50,000
1 7,916.67 5.780
CID
GECC
12/19/97
5.700
50,000
1 7,916.67 5.780
CID
Heller
12/19/97
5.900
50,000
9 73,750.00 5.990
CID
Heller
12/19/97
5.900
50,000
9 73,750.00 5.990
PURCHASE
CD
Bayer Lnds
5.760%
' 06/30/98
5.750
50,000
CD
Bkrs Trst
5.760%
06/30/98
5.760
50,000
CD
Bkrs Trst
5.760%
06/30/98
5.760
50,000
CD
Boston
5.820%
06/30/98
5.820
50,000
CD
Boston
5.820%
06/30/98
5.820
50,000
CID
Heller
01 /09/98
6.250
25,000
CID
Heller
01 /09/98
6.250
50,000
CID
Lehman
04/01 /98
5.770
50,000
CID
Lehman
04/01 /98
5.770
50,000
12122/97 REDEMPTION
MTN
GMAC
5.700%
12/22/97
6.079
15,450
497 1,274,058.50 6.085
—13—
12/22/97
PURCHASE
CD Rabo
5.755%
06/30/98
5.750
50,000
CID FMCC
01/02/98
6.080
50,000
CID Conagra
01/02/98
6.420
50,000
12/23/97
NO REDEMPTIONS
PURCHASE
CP FMCC
01/02/98
6.120
45,000
CID FMCC
01/02/98
6.120
50,000
CID Lehman
01/02/98
6.400
50,000
CID Lehman
01/02/98
6.400
50,000
CID Lehman
01/02/98
6.400
50,000
CID Lehman
01/02/98
6.400
50,000
CID Baxter
02/11 /98
6.150
35,000
Treas Bill
12/10/98
5.235
50,000
Treas Bill
12/10/98
5235
50,000
12/24/97
NO REDEMPTIONS
PURCHASE
Treas Bill
12/10/98
5.235
50,000
Treas Bill
12/10/98
5.235
50,000
Treas Bill
12/10/98
5.238
50,000
Treas Bill
12/10/98
5.238
50,000
CD Rabo
5.750%
06/30/98
5.745
50,000
CD Boston
5.780%
06/30/98
5.780
50,000
CD Boston
5.780%
06/30/98
5.780
50,000
CD Bkrs Trst
5.760%
06/30/98
5.750
50,000
CD Bkrs Trst
5.760%
06/30/98
5.750
50,000
CID Hertz
01/02/98
6.400
21,000
CID Amer Exp
01 /07/98
6.150
50,000
CID Amer Exp
01 /07/98
6.150
50,000
CID FMCC
01/08/98
6.150
50,000
CID FMCC
01/08/98
6.150
50,000
CID FMCC
01/08/98
6.150
50,000
CID Country
01 /09/98
6.450
9,805
12/26/97
REDEMPTION
CID GECC
12/26/97
5.500
50,000
15
114,583.33 5.589
CP. GECC
12/26/97
5.500
50,000
15
114,583.33 5.589
CID GECC
12/26/97
5.500
50,000
15
114,583.33 5.589
CID GECC
12/26/97
5.500
50,000
15
114,583.33 5.589
CID -GMAC
12/26/97
5.500
50,000
15
114,791.67 5.589
CID Amer Exp
12/26/97
5.510
50,000
15
114,791.67 5.599
CID Amer Exp
12/26/97
5.510
50,000
15
114,791.67 5.599
—14—
12/26/97 PURCHASE
CP
Assoc
12/29/97
5.450
50,000
CP
Assoc
12/29/97
5.450
50,000
CID
Assoc
12/29/97
5.450
50,000
Cp
Assoc
12/29/97
5.450
50,000
CP
FMCC
01 /09/98
6.120
50,000
Cp
FMCC
01 /09/98
6.120
50,000
CP
GMAC
01/13/98
6.150
50,000
CP
GMAC
01/13/98
6.150
50,000
CP
GMAC
01/13/98
6.150
50,000
CP
GMAC
01/13/98
6.150
50,000
12/29/97 REDEMPTION
BA
B/A
12/29/97
5.530
5,000
175
134,409.72
5.761
BN
B/A
5.720%
12/29/97
5.720
50,000
188
1,493,555.56
5.799
BN
B/A
5.720%
12/29/97
5.720
50,000
188
1,493,555.56
5.799
CD
Midland
5.560%
12/29/97
5.560
50,000
130
1,003,888.89
5.637
CD
Midland
5.560%
12/29/97
5.560
50,000
130
1,003,888.89
5.637
CD
Bayer Lnds
5.570%
12/29/97
5.560
50,000
130
1,003,924.42
5.637
CD
Bayer Lnds
5.570%
12/29/97
5.560
. 50,000
130
1,003,924.42
5.637
CD
UB Calif
5.620%
12/29/97
5.620.
50,000
138
1,077,166.67
5.698
CD
U/B Calif
5.620%
12/29/97
5.620
50,000
138
1,077,166.67
5.698
CD
Soc Gen
5.610%
12/29/97
5.600
50,000
158
1,228,941.53
5.677
CD
Soc Gen
5.610%
12/29/97
5.600
50,000
158
1,228,941.53
5.677
CD
Deutsche
5.610%
12/29/97
5.600
15,000
164
382,683.67
5.677
CD
Deutsche
5.610%
.12129/97
5.600
50,000
164
1,275,612.22
5.677
CD
Midland
5.600%
12/29/97
5.600
50,000
164
1,275,555.56
5.677
CD
Midland
5.600%
12/29/97
5.600
50,000
1.64
1,275,555.56
5.677
CD
Tokyo-Mits
5.840%
12/29/97
5.840
50,000
180
1,460,000.00
5.921
CD
Nova Scotia
5.700%
12/29/97
5.700
50,000
185
1,464,583.33
5.779
CD
Bayer Ver
5.690%
12/29/97
5.670
50,000
186
1,464,897.05
5.748
CD
Bayer Ver
5.690%
12/29/97
5.670
50,000
186
1,464,897.05
5.748
CD
Bayer Ver
5.690%
12/29/97
5.670
50,000
186
1,464,897.05
5.748
CD
WestDeut
5.680%
12/29/97
5.680
35,000
188
1,038,177.78
5.758
CD
WestDeut
5.680%
.12/29/97
5.680
50,000
188
1,483,111.11
5.758
CD
Bayer Lnds
5.700%
12/29/97
5.680
50,000
196
1,546,385.54
6.758
CD
Bayer Lnds
5.700%
12/29/97
5.680
50,000
196
1,546,385.54
5.758
CP
Assoc
12/29/97
5.450
50,000
3
22,708.33
5.528
CP
Assoc
12/29/97
5.450
50,000
3
22,708.33
5.528
CP
Assoc
12/29/97
5.450
50,000
3
22,708.33
5.528
CP
Assoc
12/29/97
'5.450
50,000
3
22,708.33
5.528
CP
Unocal
12/29/97
5.650
18,000
17
48,025.00
5.743
CP
Unocal
12/29/97
5.630
10,000
18
28,150.00
5.724
CP
Country
12/29/97
5.600
50,000
24
186,666.67
5.699
CP
FMCC
12/29/97
5.490
50,000
159
1,212,375.00
5.704
CP
FMCC
12/29/97
5.490
50,000
159
1,212,375.00
5.704
MTN
W/F
5.600%
12/29/97
5.600
25,000
549
2,160,135.59
5.744
—15—
12/29/97 PURCHASE
CD
Soc Gen
5.810%
06/16/98
5.770
5,000
CD
Soc Gen
5.810%
06/16/98
5.770
50,000
CD
Soc Gen
5.750%
06/30/98
5.740 .
45,000
CD
Nova Scotia
5.750%
06/30/98
5.750
50,000
CD
Bayer Ver
5.750%
06/30/98
5.740
50,000
CP
GMAC
01/02/98
6200
50,000
CP
GMAC
01/02/98
6.200
50,000
CP
GMAC
01/08/98
6.160
50,000
CP
GMAC
01/08/98
' 6.160
50,000
CP
FMCC
01 /09/98
6.120
10,000
CP
FMCC
01/09/98
6.120
50,000
Treas
Bill
12/10/98
5.243
50,000
Treas
Bill
12/10/98
5.243
50,000
Treas
Bill
12/10/98
5.243
50,000
Treas
Bill
12/10/98
. 5.243
50,000
12/30/97 REDEMPTION
BA
B/A
12/30/97
5.530
15,000
176
405,533.34
5.762
CD
World
5.500%
12/30/97
5.520
40,000
19
116,531.91
5.596
CD
World
5.540%
12/30/97
5.560
50,000
20
154,442.89
5.637
CD
World
5.650%
12/30/97
5.650
50,000
28
219,722.22
5.728
CD
World
5.650%
12/30/97
5.650
50,000
28
219,722.22
5.728
CD
World
5.650%
12/30/97
5.650
50,000
28
219,722.22
5.728
CD
Midland
5.590%
12/30/97
5.590
50,000
133
1,032,597.22
5.667
CD
Midland
5.590%
12/30/97
5.590
50,000
133
1,032,597.22
5.667
CD
U/B Calif
5:590%
12/30/97
5.590
50,000
133
1,032,597.22
5.667
CD
U/B Calif
5.590%
12/30/97
5.590
50,000
133
1,032,597.22
5.667
CD
Cr Agric
5.670%
12/30/97
5.670
100,000
180
2,835,000.00
5.748
PURCHASE
SBA (FR)
6.000%
12/25/22
6.000
5,047
CD
ABN Amro
6.140%
05/01/98
5.660
5,000
CD
ABN Amro
6.140%
05/01 /98
5.600
50,000
CD
RB Canada
5.680%
06/30/98
5.680
35,000
CD
RB Canada
5.680%
06/30/98
5.680
50,000
CD
Soc Gen
5.720%
06/30/98
5.700
50,000
CD
Bayer Ver
5.710%
06/30/97
5.690
50,000
CD
Bayer Ver
5.710%
06/30/97
5.690
50,000
CP
Country
01 /05/98
6.500
15,000
CP
Country
01 /05/98
6.500
50,000
CP
GMAC
02/09/98
5.640
50,000
CP
GMAC
02/09/98
5.640
50,000
Disc Note
FNMA
06/30/98
5.500
50,000
Disc Note
FNMA
06/30/98
5.500
50,000
Disc Note
f=NMA
06/30/98
5.500
50,000
Treas
Bill
12/10/98
5.255
50,000
—16—
12/30/97 PURCHASE
Treas Bill 12/10/98 5.255 50,000
Treas Bill 12-10-98 5.255 50,000
Treas Bill 12/10/98 5.250 50,000
12/31/97 REDEMPTION
BA
B/A
12/31/97
5.450
13,000
175
344,409.73
5.676
CD
WestDeut
5.650%
12/31/97
5.650
50,000
167
1,310,486.11
5.728
CD
WestDeut
5.650%
12/31/97
5.650
50,000
167
1,310,486.11
5.728
Treas
Note
5.250%
12/31/97
5.224
50,000
720
5,147,235.57
5.226
Treas .
Note
5.250%
12/31/97
5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12/31/97
5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12/31/97
-5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12/31/97
5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12-31-97
5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12/31/97
5.187
50,000
726
5,155,348.55
5.199
Treas
Note
5.250%
12/31/97
5.325
50,000
729
5,305,889.42
5.326
Treas
Note
5.250%
12131 /97
5.325
50,000
729
5,305,889.42
5.326
SALE Si/
CD
Stnrd Ch
5.560%
12/31/97
5.550
500,000
93
716,893.26
5.627
PURCHASE
CD
Bkrs Trst
5.700%
06/30/98
5.690
50,000
CD
Bkrs Trst
5.700%
06/30/98
5.690
50,000
CD
ANZ
5.700%
06/30/98
5.690
50,000
CD
ANZ
5.700%
06/30/98
5.690
50,000
Treas
Bill
12/10/98
'5.255
50,000
RRP .
Treas
Note
5.250%
12/31/97
5.100
50,000
93
(667,287.40)
-5.170
PURCHASE
BA
Montreal
03/09/98
5.510
15,000
BA
Montreal
03/09/98
5.510
15,000
BA
Montreal
03/23/98
5.510
10,300
CP
FMCC
03/02/98
5.510
50,000
CID
FMCC
03/02/98
5.510
50,000
CP
U/B Calif
03/06/98
5.510
50,000
CID
Conagra
03/31 /98
5.650
20,000
CID
Conagra
03/31 /98
5.650
22,000
CID
FMCC
06/30/98
5.450
50,000
CID
FMCC
06/30/98
5.450
50,000
FFCB
5.650%
01 /04/99
5.575
18,305
FFCB
5.650%
01 /04/99
5.575
50,000
—17—
12/31/97 PURCHASE r1
Treas
Note
8.250%
07/15/98
5.450
41,000
Treas
Note
6.000%
09/30/98
5.450
14,000
Treas
Note
5.625%
11 /30/98
5.450
12,185
Treas
Note
5.000%
01 /31 /99
5.450
45,000
Treas
Note
8.875%
02/15/99
5.450
18,400
Treas
Note
5.500%
12/31 /00
5.450
18,000
—18—
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 (E)MA),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FMB), Federal Land Bank Bonds (FLB), Federal Home Loan .
Mortgage Corporation Obligation (FSLMC 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 0TTN).
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.
—19—
NAME
ALHAMBRA
East West Bank
East West Bank
East West Bank
East West Bank
BEVERLY HILLS
City National Bank
City National Bank
City National Bank
City National Bank
CHICO
Tri Counties Bank
Tri Counties Bank
North State National Bank
North State National Bank
North State National Bank
FRESNO
Kings River State Bank
GL ENDA E
Glendale Federal Bank
Glendale Federal Bank
Glendale Federal Bank
INGLEWOOD
Imperial Bank
Imperial Bank
Imperial Bank
Imperial Bank
Imperial Bank
Imperial Bank
Imperial Bank
Imperial Bank
LA MIRADA
Southern California Bank
Southern California Bank
10/16/97
5.150
5,000,000.00
01 /12/98
10/14/97
5.160
10,000,000.00
01/12/98
11/10/97
5.340
35,000,000.00
02/01/98
12/18/97
5.240
12,000,000.00
03/19/98
07/29/97
5.380
- 10,000,000.00
- 01 /27/98
08/19/97
5.370
20,000,000.00
02/18/98
12/18/97
5.230
20,000,000.00
03/19/98
11/04/97
5.390
10,000,000.00
05/05/98
06/26/97
- 5.310
15,000,000.00
01 /02/98
10/21 /97
5.100
10,000,000.00
01 /21 /98
08/26/97
5.350
1,000,000.00
02/25/98
09/11 /97
5.370
500,000.00
03/11 /98
10/06/97
5.290
2,000,000.00
04/07/98
10/15/97
5.130
1,000,000.00
01 /15/98
10/09/97
5.110
5,000,000.00
01 /08/98
12/29/97
5.360
3,000,000.00
03/31 /98
10/20/97
5.340
100,000,000.00
04/17/98
10/16/97
5.170
25,000,000 00
01 /15/98
10/29/97
5.160
5,000,000.00
01 /29198
11 /03/97
5.250
10,000,000.00
02/03/98
11 /06/97
5.250
20,000,000.00
02/05/98
11 /13/97
5.390
20,000,000.00
02/11 /98
12/10/97
5.340
25,000,000.00
03/11 /98
12/18/97
5.260
11,000,000.00
03/19/98
12/31 /97
5.430
36,000,000.00
03/31 /98
10/08/97 5.070
10/16/97 5.130
5,000,000.00 01 /08/98
5,000,000.00 01 /15/98
—20—
NAME
LOS ANGELES
Preferred Bank
DEPOSIT DATE
10/15/97
YIELD
5.130
PAR AMOUNT (S) MATURITY
3,000,000.00
DATE
01/15/98
Preferrred Bank
11/20/97
5.290
4,000,000.00
02/18/98
Preferred Bank
11/25/97
5.310
2,000,000.00
02/24/98
Preferred Bank
12/16/97
5.220 '
5,000,000.00
03/17/98
Preferred Bank
12/18/97
5.220
4,000,000.00
03/19/98
Preferred Bank
09=97
5.310
9,000,000.00
03/24/98
General Bank
12/04/97
5.300
10,000,000.00
03/30/98
General Bank
1'2/19/97
5.250
15,000,000.00
03/31/98
' Preferred Bank
12/31 /97
5.410
3,000,000.00
04/01 /98
Community Bank
12/19/97
5.430
10,000,000.00
06/17/98
Community Bank
12/23/97
5.510
5,000,000.00
06/22/98
General Bank
12/01 /97
5.480
28,000,000.00
11 /06/98
POMONA
Pomona First Fed Bk & Trst
11/25/97
5.550
8,000,000.00
05/27/98
PETALUMA
Bank of Petaluma
08/12/97
5.460
1,000,000.00
02/11/98
SACRAMENTO
Sanwa Bank of California
07/29/97
5.400
5,000,000.00
01/27/98
Union Bank of California
11 /05/97
5.260
100,000,000.00
02/04/98
Union Bank of California
11/19/97
5.310
50,000,000.00
02/17/98
Sanwa Bank of California
08/19/97
5.450
50,000,000.00
02/18/98
River City Bank
11/21/97
5.310
5,000,000.00
02/19/98
Sanwa Bank of California
08/26/97
5.350
10,000,000.00
02/25/98
Union Bank of California
12/31/97
5.410
100,0001000.00
03/31/98
Sanwa Bank of California
11/05/97
5.390
7,000,000.00
05/06/98
SAN DIEGO
Bank of Commerce San Diego
12/18/97
5.230
14,000,000.00
03/19/98
San Diego First Bank
12/03/97
5.450
1,500,000.00
06/02/98
San Diego First Bank
SAN FRANCISCO
12/22/97
5.450
1,500,000.00
06/23/98
Bank of Canton California
10/21/97
5.050
5,000,000.00
01/21/98
Bank of Canton California
08/07/97
5.440
5,000,000.00
02/04/98
Bank of Canton California
08/13/97
5.480
5,000,000.00
02/11/98
TransPacific National Bank
09/16/97
5.650
800,000.00
03/17/98
Bank of Canton California
12/04/97
5.420
5,000,000.00
06/04/98
Bank of Canton California
12/09/97
5.440
5,000,000.00
06/09/98
Bank of Canton California
12/01/97
5.500
5,000,000.00
12/01/98
Bank of Canton California
12/15/97
5.450
5,000,000.00
12/15/98
-21-
SAN LEANDRO
Bay Bank of Commerce
10/07/97
5.040
2,000,000.00
01/07/98
Bay Bank of Commerce
SAN LUIS OBISPO
10/14/97
5.150
2,000,000.00
01/12/98
First Bank of San Luis Obispo
10/07/97
5.130
1,000,000.00
01/07/98
First Bank of San Luis Obispo
11/06/97
5.280
3,600,000.00
02/04/98
First Bank of San Luis Obispo
11/13/97
5.310 .
2,000,000.00
02/11/98.
First Bank of San Luis Obispo
11/25/97
5.330
2,500,000.00
02/24/98
First Bank of San Luis Obispo
SAN RAFAEL
12/11/97
5.240
1,000,000.00
03/12/98
West America Bank
10/02/97
5.060
25,000,000.00
01 /22198
West America Bank
10/29/97
5.130
25,000,000.00
01/29/98
SANTA ANA
Grand National Bank
12/09/97
5.410
1,500,000.00
03/10/98
Grand National Bank
12/10/97
5.310
1,500,000.00
03/11/98
Grand National Bank
12/31/97
5.480
95,000.00
06/30/98
STANISLAUS
North Valley Bank
TORRANCE
09/22/97
5.300
3,000,000.00
03/24/98
China Trust Bank (U.S.A.)
12/11/97
5.270
10,000,000.00
03/11/98
China Trust Bank (U.S.A.)
TUSTIN
12/31/97
5.410
5,000,000.00
03/31/98
SunWest Bank
VACOVII L E
12/31/97
5.400
,
500,000.00
03/31/98
Continental Pacific Bank
VICTORVILLE
12/03/97
5.280
1,000,000.00
03/04/98
Citizens Business Bank
. 08/12/97
5.470
10,000,000.00
01/09/98
Citizens Business Bank
10/21/97
5.110
5,000,000.00
01/22/98
Citizens Business Bank
08/12/97
5.490
10,000,000.00
02/11/98
Citizens Business Bank
10/21/97
5.190
5,000,000.00
02/19/98
Citizens Business Bank
09/11/97
5.400
10,000,000.00
03/11/98
Citizens Business Bank'
12/10/97
5.590
10,000,000.00
06/09/98
TOTAL TIME DEPOSITS AS OF DECEMBER 31,1997
$190729,795,000.00
—22—
DEMAND BANK DEPOSITS
(000 omitted)
DAILY BALANCES
WARRANTS
DECEMBER PER BANKS OUTSTANDING
1.
$6699531
$991,232
2.
266,117
9464168
3
4289846
872496
4.
2839797
1466,071
5.
1469,896
1,140,243
6.
146,896
1,1409243
7.
1469896
191409243
8.
1959011
9919138
9.
99,780
8089403
10.
249,600
6879253
11.
265429
7689,668
12.
177,931
7509534
13.
1779,940
750,534
14.
177,940
7509534
15.
4269105
608,042
16.
6969925
5419,685
17.
369,688
545,567
18.
174420
5459567
19.
143,480
4601,772
20.
1439480
4609772
21.
143,480
4609772
22.
303,806
3509799
23.
3889,638
256,988
24.
3969072
82,971
25.
3969072
82,971
26.
7159,454
275,945
27
7159,454
275,945
28.
7159,454
275,945
29.
7239813
564,161
30.
1989,156
5149,649
31.
598,226
9171,072
a/
AVERAGE DOLLAR DAYS $3449524
a/ The prescribed bank balance for December was $310,831,637.00. This
consisted of $156,664,777.00 in compensating balances for services,
$167,843,037.00 uncollected funds and a deduction of $13,676,177.00 for
August delayed deposit credit.
-23
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1582
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on December 17, 1997, 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
bank accounts as Compensating Balance for Services $145,818,000
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) 12/15/97
(2) 12/22/97
(3) 12/29/97
(4) 01 /05/98
(5) 01 /12/98
(6) 01 /19/98
(7) 01 /26/98
(8) 02/02/98
(9) 02/09/98
(10) 02/16/98
To
12/19/97
12/26/97
01/02/98
01/09/98
01/16/98
01 /23/98
01 /30/98
02/06/98
02/13/98
02/20/98
Transactions
1,909,500,000
2,483,800,000
(901,700,000)
975,400,000
937,900,000
567,100,000
(438,700,000)
1,054,600,000
(269,300,000)
1,001,500,000
Time Deposits in
various Financial
Institutions
In Securities
(sections 16503a
(section 16430r
and 16602)'
$ 25,629,205,000
$
1,053,295,000
$ 28,113,005,000
$
1,053,295,000
$ 27,211,305,000
$
1,0539295,000
$ 28,186,705,000
$
1,053,295,000
$ 29,124,605,000
$
1,053,295,000
$ 29,691,705,000
$
1,053,295,000
$ 29,253,005,000
$
1,053,295,000
$ 30,307,605,000
$
1,053,295,000
$ 30,038,305,000
$
1,053,295,000
$ 31,039,805,000
$
1,053,295,000
Estimated
Total
$ 26,682,500,000
$ 29,166,300,000
$ 28,264,600,000
$ 29,240,000,000
$ 30,177,900,000
$ 30,745,000,000
$ 30,306,300,000
$ 31,360,900,000.
$ 31,091,600,000
$ 32,093,100,000
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 $145,818,000.
Dated: December 17, 1997
'Government Code