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2000 04 12 IAB1 P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 April 12, 2000 - 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 March 8, 2000 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for February, 2000 B. Continued Consideration of Fiscal Year 2000/01 Investment Policy C. Schedule change for June 14, 2000 Meeting VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - March, 2000 B. Pooled Money Investment Board Reports - January, 2000 VII BOARD MEMBER ITEMS VIII ADJOURNMENT' INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: April 12, 2000 Transmittal of Treasury Report for February 29, 2000 Attached please find the Treasury Report for February 29, 2000. Review, Receive and File the Treasury Report for February 29, 2000. t-Im Joh M. Falconer, Finance Director T a 0 jhf 4 4 Q" MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for February 29, 2000 DATE: March 28, 2000 Attached is the Treasurer's Report for the month ending February 29, 2000. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Dept. The following table summarizes the changes in investment types for the month: Investment Beginning Purchased Sold/Matured Other Ending Change Cash (1) $1,070,446 ($17,678) 1,052,768 ($17,678) LAIF $9,932,650 3,000,000 1,500,000 11,432,650 1,500,000 US Treasuries (2) $22,021,283 0 3,000,000 (6,548) 19,014,735 (3,006,548) US Gov't Agencies (2) $19,683,980 0 51,663 19,735,643 51,663 Commercial Paper (2) $3,988,755 0 4,000,000 11,245 0 (3,988,755) Mutual Funds $3,221,337 4,561,552 7,782,889 4,561,552 Total $59 918 451 $7 561 552 $8 500 000 $38 682 $59 018 685 $899 766 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and ins in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. the City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. 41 in M. Falconer ance Director/Treasurer 3 3! 00 Date Footnote (1) The amount reported in the other column represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the 002 E 3 E .9 E N w N c c N E N C Z 5 0 5 LL V N O c o o 0 0 c c z z z z z z z z o L 3. c'QE U- g n d 60 60 N c O 3 V V7! c M c O a �° ° QO U co C0 U LL LL m o `o c C r.c c ca O N N N N M N C 7 0 O 0 lC0 L c c c Q0E$ c�a qn � 4`cn E c E c� c� O LL E N C O C G O Z — ow ox v! 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L Cn cu U °O a c N E y C IL 3 (0 gcu� 1 � • CITY OF LA QUINTA BALANCE SHEET 02129/00 CITY ASSETS: POOLED CASH 3,024,756.04 LQRP INVESTMENT IN POOLED CASH INVESTMENT T-BILL/NOTES & OTHER 30,000,000.00 AUTO MALL CASH 551,685.45 LQRP CASH BOND REDEMPTION CASH BOND RESERVE CASH BOND PROJECT CASH BOND ESCROW CASH PETTY CASH 1,000.00 CASH & INVESTMENT TOTAL 33,577,441.49 INVESTMENT IN LAND HELD FOR RESALE ACCOUNTS RECEIVABLE 35,711.23 PREMIUM/DISCOUNT ON INVESTMENT (185,764.03) LQRP-ACCOUNTS RECEIVABLE INTEREST RECEIVABLE 12,288.93 LOAN/NOTES RECEIVABLE 17,855.99 DUE FROM OTHER AGENCIES 127,984.00 DUE FROM OTHER GOVERNMENTS DUE FROM OTHER FUNDS 785,501.19 DUE FROM RDA 6,890,277.20 INTEREST ADVANCE -DUE FROM RDA 1,582,760.34 ADVANCES TO OTHER FUNDS 306,491.92 NSF CHECKS RECEIVABLE 1,896.86 ACCRUED REVENUE TRAVEL ADVANCES 4,798.00 EMPLOYEE ADVANCES PREPAID EXPENSES RECEIVABLE TOTAL 9,579,801.63 WORKER COMPENSATION DEPOSIT RENT DEPOSITS UTILITY DEPOSITS 75 00 CITY CITY RDA RDA FA FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL 8,078,328.66 (35.21) 11,103,049.49 755,000.00 755,000.00 30,000,000.00 551,685.45 74,684.59 74,684.59 1,965,155.74 28.73 1,965,184.47 14,179,437.10 589,265.36 14,768,702.46 1,000.00 25,052,606.09 589,258.88 59,219,306.46 60,983.90 8,260,000.00 8,356,695.13 (14,858.08) (200,622.11) 53,921.76 53,921.76 12,288.93 2,668,850.80 2,686,706.79 127,984.00 741,656.90 1,527,158.09 6,890,277.20 1,582,760.34 306,491.92 1,896.86 833.40 833.40 4,798.00 3,511,388.68 8,260,000.00 21,351,190.31 MISC. DEPOSITS 2,100.00 75.00 2,100.00 DEPOSITS TOTAL 2,175.00 2,175.00 GENERAL FIXED ASSETS 1,289,694.28 15,146,522.00 10,233,506.05 26,669,722.33 ACCUMULATED DEPRECIATION (585,360.27) (585,360.27) AMOUNT AVAILABLE TO RETIRE UT DEBT 3,395,117.03 3,395,117.03 AMOUNT TO BE PROVIDED FOR LIT DEBT 1,677,482.02 95,027,306.06 8,260,000.00 104,964,788.08 TOTAL OTHER ASSETS 704,334.01 15,146,522.00 1,677,482.02 10,233,508.05 98,422,423.09 8,260,000.00 134,444,267.17 TOTAL ASSETS 43,863,752.13 15,146,522.00 1,677 482 02 28,563,994.77 10,233 506 05 98,422,423.09 8,849,258.88 8,260,000.00 215,016,938.94 LIABILITY ACCOUNTS PAYABLE 1,163,738.40 11,999.44 3,786.45 749.00 1,180,273.29 DUE TO OTHER AGENCIES 1,063,845.89 1,063,845.89 DUE TO OTHER FUNDS 575.00 1,517,278.09 9,305.00 1,527,158.09 INTEREST ADVANCE -DUE TO CITY ACCRUED EXPENSES PAYROLL LIABILITIES 8,386.02 8,386.02 STRONG MOTION INSTRUMENTS 3,547.47 3,547.47 FRINGE TOED LIZARD FEES 28,890.00 28,890.00 SUSPENSE 3,000.00 3,000.00 DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 2,271,982.78 11.999.44 1,521,064.54 10,054.00 3,815,100.76 ENGINEERING TRUST DEPOSITS SO. COAST AIR QUALITY DEPOSITS ARTS IN PUBLIC PLACES DEPOSITS 375,895.24 375,895.24 LQRP DEPOSITS 15,364.00 15,364.00 DEVELOPER DEPOSITS 1,266,496.69 1,266,496.69 MISC. DEPOSITS 365,559.95 365,559.95 AGENCY FUND DEPOSITS 1,157,547.98 1,157,547 98 TOTAL DEPOSITS 3,165,499.86 15,364.00 3,180,863.86 DEFERRED REVENUE 8,270.67 8,260,000.00 8,268,270.67 OTHER LIABILITIES TOTAL 8,270.67 8,260,000.00 8,268,270.67 COMPENSATED ABSENCES PAYABLE 337,880.86 337,880.86 DUE TO THE CITY OF LA QUINTA 1,327,601.72 8,473,037.34 9,800,639.06 DUE TO COUNTY OF RIVERSIDE 12,466,237.00 12,466,237.00 DUE TO C.V. UNIFIED SCHOOL DIST. 10,068,148.75 10,068,148.75 DUE TO DESERT SANDS SCHOOL DIST. BONDS PAYABLE 67,415,000.00 8,260,000.00 75,675,000 00 TOTAL LONG TERM DEBT 1,665,482.58 98,422,423.09 8,260,000.00 108,347,905.67 TOTAL LIABILITY 5,445,753.31 1,677,482.02 1,536,428.54 98,422,423.09 8,270,054.00 8,260,000.00 123,612,140.96 EQUITY -FUND BALANCE 38,417,998.82 15,146,522.00 27,027,566.23 10,233,506.05 579,204.88 91,404,797.98 TOTAL LIABILITY & EQUITY 43,863,752.13 15,146,522.00 1,677,482.02 28,563,994.77 10,233,506.05 98,422,423.09 8,849,258.88 8,260 000.00 215 01 9938 94 (0.00) (0.00) (0.00) CASH & INVESTMENT TOTAL 59,219,306.46 PREMIUM/DISCOUNT ON INVESTMENT (200,622.111 TOTAL 59,018,684.35 009 (Note - An undated Investment Policy with options discussed at the last meeting is attached to the Minutes) INVESTMENT ADVISORY BOARD Business Session No. B Meeting Date: April 12, 2000 TITLE: Continued Consideration of Fiscal Year 2000/01 Investment Policies BACKGROUND: 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. As a result of the March meeting, Staff contacted the other cities in the Coachella Valley to determine their use of corporate notes. Palm Springs, Indian Wells and Palm Desert invest in corporate notes. Staff contacted our bank, Wells Fargo and received their choices in Sweep accounts. The City utilizes the Treasury Sweep option. The rates on the various options can be found in Attachment 1. Staff contacted our broker/dealers and received information on the spreads for 30/60/90 day paper which can be found in Attachment 2. Staff met with the City Manager and proposed a maximum rate for LAIF of 25% for FY 00/01. The average LAIF balance from 7/1 /99 to 2/29/00 has been 19.92% with a high of 27.77% and a low of 10.65%. Staff has listed the yields on LAIF from 7/99 - 2/00 as Attachment 3. RECOMMENDATION: Continued review of the Investment policies for approval by City Council in June 2000. J hn M. Falconer, Finance Director ATTACHMENT NO. 1 WELLS FARGO CORPORATE CASH MANAGEMENT ACCOUNT Average Monthly Yield for investments of $100, 000 to $1, 000, 000 Government Wells Fargo Wells Fargo Commercial Sponsored Treasury Money Cash Money Paper Enterprises Market Fund Market Fund Mar-1999 3.910% 3.786% 3.711% 3.877% Apr-1999 3.847% 3.740% 3.677% 3.868% May-1999 3.865% 3.761% 3.608% 3.821% Jun-1999 3.879% 3.759% 3.547% 3.866% Jul-1999 4.118% 3.994% 3.705% 4.028% Aug-1999 4.179% 4.078% 3.818% 4.121% Sep-1999 4.317% 4.201% 3.897% 4.249% Oct-1999 4.291 % 4.174% 3.901 % 4.321 % Nov-1999 4.535% 4.429% 4.093% 4.484% Dec-1999 4.274% 4.158% 4.098% 4.749% Jan-2000 4.310% 4.211% 4.159% 4.858% Feb-2000 4.804% 4.710% 4.413% 4.921% Important Disclosure Dreyfus Treasury Prime Cash Mgmt 3.593% 3.545% 3.509% 3.501% 3.626% 3.634% 3.700% 3.767% 3.966% 4.109% 4.204% 4.365% Securities other than repurchase agreements and banker's acceptances issued by Wells Fargo Bank are not obligations of or deposits in Wells Fargo & Co. or Wells Fargo Bank, are not guaranteed by the Bank, and are not FDIC insured. Repurchase agreements and banker's acceptances issued by Wells Fargo Bank are obligations of Wells Fargo Bank, but they are not deposits in the Bank and are not FDIC insured. The investments described herein, involve risks, including the possible loss of principle. Money market mutual funds seek to maintain a stable net asset value of $1.00 per share; however there can be no assurance that the Funds will meet this objective. Past performance is not indicative of future performance. 002- WELLS FARGO CORPORATE CASH MANAGEMENT ACCOUNT Average Monthly Yield for investments of $1, 000, 000 to $S, 000 000 Government Wells Fargo Wells Fargo Commercial Sponsored Treasury Money Cash Money Dreyfus Treasury Paper Enterprises Market Fund Market Fund Prime Cash Mgmt Mar-1999 4.210% 4.086% 4.011% 4.177% 3.893% Apr-1999 4.147% 4.040% 3.977% 4.168% 3.845% May-1999 4.165% 4.061% 3.908% 4.121% 3.809% Jun-1999 4.179% 4.059% 3.847% 4.166% 3.801% Jul-1999 4.418% 4.294% 4.005% 4.328% 3.926% Aug-1999 4.479% 4.378% 4.118% 4.421% 3.934% Sep-1999 4.617% 4.501% 4.197% 4.549% 4.000% Oct-1999 4.591 % 4.474% 4.201 % 4.621 % 4.067% Nov-1999 4.835% 4.729% 4.393% 4.784% 4.266% Dec-1999 4.574% 4.458% 4.398% 5.049% 4.409% Jan-2000 4.610% 4.511% 4.459% 5.158% 4.504% Feb-2000 5.104% 5.010% 4.713 % 5.221 % 4.665 % Important Disclosure Securities other than repurchase agreements and banker's acceptances issued by Wells Fargo Bank are not obligations of or deposits in Wells Fargo & Co. or Wells Fargo Bank, are not guaranteed by the Bank, and are not FDIC insured. Repurchase agreements and banker's acceptances issued by Wells Fargo Bank are obligations of Wells Fargo Bank, but they are not deposits in the Bank and are not FDIC insured. The investments described herein, involve risks, including the possible loss of principle. Money market mutual funds seek to maintain a stable net asset value of $1.00 per share; however there can be no assurance that the Funds will meet this objective. Past performance is not indicative of future performance. 0 03 APR 05 '00 11:49AM SB IFG NEWPORTBCH647 ^ AI^ ATTACHMENT NO. 2 wn�ua , c. s ltc uen,or V,cr, pres,der+t InwSrmcnta lnautudanal pl 0 Income Gro GN6ee0ww��Np��r,rpQ,i Cpnrer drove, Suite f 100 949.7�7-5ag2/gppA, $�Bo-6-0f 949.717-5d49 F� -W63 U5 -- TPBOSOD 45.99 — . 02 Index GPO At 11:52 Up 5.99 Hi 5.99 Lo 5.99 M i d L i n 030D ndex Page 1/10 Range 110/ 5/9 - 4/ S/0q Period 0 Daily - Upper Chart Mid Line Moving Averages 1 l News Ccpyri ht 2000 eL00t��s L.A. Frankfur"tv69-920410 Hong Kong-2-977-6000 London$171-33vr/auu PWW Yorx=44c-Q20-cwW Prince on�6o3-279-3�0 3irx ore1226-3000 Sydney=2-9777-a686 Tokyo=3-32Ot-8900 Sao Paulo'!l-3049-4saa 16a9-901-1 05—Apr-00 15tQs22 Although the information in this report has been obtained from sources which Salomon Smith Barney believes to be reliable, we do not guarantee its accuracy and such infanwition may be in- eon*teor condensed. All opinions $W estriatesincluded in this report constitute ouriudpmt as of this date and are subject to change without notice. This report is for information purposes only and is not intended as an offer or solicitation with respect to t.hs purchase or sale of any security, The material is fumistled on the understanding that 8e10=1 Smith Barney is snot undertaking to manage money or act as a fiduciary with respect to your account or any of your managed or fiduciary accaurtts and that our services do not ssrve as a prknory basis for any invesrrmt decision made with respect to such accounts. This matOngi provides information andlor alter- natives we beieve to be appropriate for consideration. The dKision whether or not to adopt any strategy or engage in any transac ton is not our r8sp0nW1litY. o-0 4 APR 05 '00 11:50AM SB IFG NEWPORTBCH647 P.2/3 DIPBO60D .16 . 0 —.02 Index GPD At 11=52 Op 6.02 Hi 6.02 Lo 6.02 M i d L i n g DIPM Indm page 1/10 Range Or' S/9 — iI 5/00 Period Daily Upper Char.: Mid Line Moving Averages 1) dews • , i C baeAN q 0AWN m 6➢2 6 i ' Hmcomm -^------------------------- --,--- - T-- rage 5.7117 - , - - i Lam loom Vs l:opyricgt 2000 BLU MBERG L.P. Frw*furt:69-920410 Hong Kong;2-977-6000 Landon 171-330-7300 New Yorka212-318-2000 Priri01r{an 609-279-3000 SitlgO�pare=226-30QQ Sydr*y'2-9777-8686 Tokyo�3 1-5900 Sao Paulo=11-3048-4500 I639-901-1 05-4pr-00 15:43 44 � 9 Although the infamtation in this CePa b��eves to be reliable,we SaufCeS WNCh Selorrr�n Sot Barney believes do not guarantee its accuracy and andhe��rr�at�tinc�ded in be comQietn. e or condom• All opiniarrs report consti tute our judat as of this date and are subjac t to champ without notice, This i Ort is for infom ton pdrposes oni VA is QOl intmiad ds n o ef or s0licljat on Wth respect to the pummse or We of any smudry. The material is furnished on the understanding that Salonvri Smith Barmy is not undertaking to manage money or act as a fiduciary with h respect to your account or any of your managed or fiduciary (accounts and that our services do not serve es a p unary bas for any investment decision made with respect to such accou _ This material providas infomMon andlor Sher• natives we believe to be appropriate for consideration. The decision whiethsr at not to adopt any strategy or engage in any transaction Is not our responsibi5tY' .005 APR 05 ' 00 11: 51AM SB IFG NEWPORTBCH647 P.3/3 DIPBO90D 46 . D5 -- At 11tS2 Op G.QS Ni 6.0S Lo 6.OS Mid L Range 0 - 4I Upper Charts M Mid Line n e iummomy inues Period U Daily Moving Averages M 0 Index G P D Page 1/10 1) News cew■n b . Q Hqr norm on '--- ----.' 9ml -- r_ 1--------------,-- 1 1 I ...fi---�---------------------- $ .----------► .........................r..-----------------.. 1 1 ; • I , 1 , • 1 = 1 , 1 • I 1 1 1 a I = 1.................•......-......-....1.---.-.......----- • • .� • 1 • 1 1 • , 1 1 1 1 I � • 1 1 1 • 1 1 • , I •----------------- S.a---------------�.------------a-.tea.--------a------- ----------------- 5.4 1 1 1 .-.......... ....-_--.....-.--___�.------a --__-- Copyright 2000,Q40Q00D L.P. FrgnKfurt=69-9SO4iQ Hong Princeton:609-Z27799--3$W17 Singapa-e°226-=0 �Id►Z J° Although the information in this report has been obtained from sources which Salomon Smith Barney believes to be reliably in do not guarantee its accuracy and such ir►forrnation meY Complete or cord msod- AN opiroorts and estimates included in tHs report eonstltuto our judgment as of this date and are subiect to chanpa without 006Ce- ft report i$ for infarrnation purposes Only end J$ not intended ea an offer or soGaitation with respect to the purchase or We of arw murity. HOW Sm rWlo' i Za-�i0 m 8-45QQ 1639-lei i-1 06-Apr--0O 15.421 S9 The rr*Wal is fur shod on the unders i tand np that Salomon Smith Gamer Is no undertaking to manapo monav or act as a fiduciary wi th mp ct to your account or any of your managed or fiduciary accomits and that our services do not serve as a primary bays Forarrf investment dmwdn made with respect to such accounts. This meterial provides inf ormetion andlor alter• n'tives we believe to be appropriate for consideration. The decision whether on not to adopt any strategy or engage in any transaction is not 60 mMns ty. 006 SENT BY: MORGAN STANLEY DEAN WITTER; Market Measures 2i 3B228935; MAR - 30.89 9 : i 5PM; PAGE 1/1 For Internal Use Only ytr.edar 1 Mh4k Aga 4 WOOD Ago s 6fardu Alp 1 yew Age _ MOM 03114b0 Draw 12027NO 0=31W IYl�ri�y �"`��� plNdabt��I�•OflllfA.�. • _ - - , J'� y�'.l �.. _ • ':K �• • Faes" rFwWa....I...............................................1..................... 6.85 i > 8.76% MrntD lar M Pats ............... .. , ...... _ ... ....................... _ .... , .. , ..... 7_SO R7s S 7 % $.50 T.SO 3.5bl1.. 7.s5 1 "4.t36.50 For"p Prints Maiew allew ...... ......................... ............... .. ......................... awrnwny 340 d.00 8.00 390 3 0 3.00 3.0 JapaA............. .._..............._......•...............•....... L"ARate pmrnXhi ...... .......... • • 1.36�25 R43 Q3>' 13b ., 9.3S 6.30 3.00 EasyCash CDs Fated trtcarne Order Entry: We Proary Aft*91 w COc Swwidwy Me" ...`... , ...........• etnontna ..........................::.. slat% 5.75% 6.4% S.� 4.39W ..... ............,.. . .. a.1a aos LOS 5.80 s.�yo Vw.......................... •...................................... •............. Edo 6.46 9lSO iW $25 ymal .............. ................................... 3ymm............................... _ _ _............................................ am 7,05 COS 2.90 e.6i 746 sae V5 5M 5.43, 5,reariF................. 7 7.15 Rao 645 ............................... .............I......................, 0 7.1s lR90 s,� Commercial Pape HO Grade, Unsecured Notes Aroedaw Poe 17180 30 day................................................................................ •- 5.72% 5.00% 4.7S% a8.00 5.e1 Rd0 .66 4.73 190 day.............................................................. . ................ - 3.w 4,72 �•t0r•fyU�' - .:Y'.. I;�Y•.-r.w i . ��'i _..v.�Y1 x� .1 ti,i.i �.-. 1 - s�y'fxl.`�'. �;: ���, .f ,• _ .:..� .. .�.r�• �''. -.'u._ .;�,I:� �� '4:�,+.',!�,�,.,. - f.,.. '�:':�I.�'•- S�•• � �� yr."'K•;�',til''I." ...� �.Y .h T Bilta Fixed rnemle ordw E1Wy: Us T-aft 5 4.53 a•Iltdmth............................................................................... ail 6.11 d.11 tl.y1{ w L73% b.7a 4.ft 53 1-Year......... .......................................... ,............................ ale GAS ale Los 4 7Q Treaewy Notes & Bondi* shred *mom QaW FWW. US T-lilmrds A Notes 2-steal Nee . . ....... . ................. • ... • ................ , .. , .... , .... , , . , ........... &50% 0,45% 8,53% 6.19 J4 5-yeerNotY..........._..............I..I.......................................... IH47 4.56 9.61 629 S.09 7"Yow Nab . ................................................................ . ..... 8.41 4.34 am 6.61 a.32 10-YiW ►fte............................................ . .... . ......................... C14 d a0 Ras 6.30 s.ao 30-Yew a".......................................................................... 0.97 6.10 6.07 6.30 5.56 U.S. Treasury STRIPS Fixed tncow 4rdK Entry; US Tmwy S1r0#i1W- 0rp 2-1Rw .......... ........................................................... &35% 6.4M R54% 822% 5.01% 6.yw .................. _...".,......•.1.......1...................... 41.46 aat 4,71 6.41 5,20 1G-Ytilt ... _ ..... _ .......... ... ....................................................... &41 "1 6.62 an 5.5a 25-Yow ........ ........ ...... ..... ................... LIS 621 a.24 a.30 3.87 '.� >r< r.'�. Ir"r'ti 'I�!''�?'1'•hi:.d„ ii__�.F�, r-• .y�,.� .�1!�y �� '" �!'-�<�j:.fi� �OL�r.--•L',J!!�.�:•y�;';'r'{�/��--:r"•7R ♦ �t 'k'r�J _ ... ids.` .. a !.•'::'i�',•►' .-}.h Repreaenta eve Serials' 6-Y" MA ............................. ....................... _ ....:.. _ .. _ .......... 4.111t% 4.90% 4.24% 4.0% 3."% M._...........................................................••............. 4M dA0 5.04 4.78 3.93 10-Yves AM .. ......................... ..... . .... . ........................... I .... , 0.10 5.16 SM 5.00 4 2ir AA......................................................_.........•........... 520 Cft 533 5.19 4.36 tyYipwAAA.......................................................................... 5A2 5,48 510 s.33 4.70 AA........................................................................... LN 5.58 5.70 5*1 4" MYe#r AAA...........................................................•.............. 5.116 5.71 5.82 SM 4.94 AA........................... ...........,..................................... 576 591 5.112 5.03 5.04 orporate Bonds Fined InrxiaMY Order levy; High Grids rwparats fiends glydrntedWe lndU$Ift a" AAA• . •............................................................................ 7.30% 79 % 7.51% - 5.WA M................................................................................ 7.50 7.52 7.55 ..+ 5.93 A............_................_.._..........................._............. 7.74 1.55 7.76 - 6.20 3o-YM NAWW Na" AAA............................................................................._ . 7,30 7m 7.46 - 6.37 M...,.................................... .... .............I.............. 7.3a 7.75 7.64 - 6-75 ....................................................................... 7.76 TM Tao - a_93 30.yw t lfiel- AAA...•......................................•.................................... 7.70 7.97 7.78 - 9.70 All........................................................................•........ 7A3 6.11 7M - 7.06 A .......................................................... ... ..... ............... 11.22 e� 6.1T - 721 Preferred Securities (9ased on non-DRD-aligible issues)"' .... *mhet"; Fined Ir ame, Odder+ FiAlry, 'Prtrrernad Syrtlhrtic.' TradiliwaW- &oadoatt page 15236 A^ ......................... ................ ............................... _ ......... , am% aam ass% e-aft a.dz% A......................................._...............................,............ 9.75 9.75 8.75 9.75 7.00 tw.................. ........................................................ ........ 926 9123 9.25 925 7.30 Mortgage Backed Orrerlw- Fite mean* order &" wwvnts..*w and Mast -backed' __... SecuritieVCM(Ds G" 7% UN (aftrAp Ira 10 years) ...................................................... 7.27% 7.30% 7.32 7.1 MAdoFNMA 7% M58 WA=Ve 10 yw;)...................................................... 127 7.30 7.36 7.15 - FHLMC 7% M03 *48111pe Its 10 years) ..................................................... 7.27 7.90 7.36 7.15 - RVMA 716% CMO (axuapv Gti 10 Veers '. .... .. .........................................1. • . 7.90 8.10 7.84 7.00 These errs Wasentarve y1olds In tits various rnarket seders deerrwd to be, aMurnts to tree bast of our knowledge. S..ed on I W wmales. Plaass 0all f1}14 desk to check rates. " Qlttla ere derived from the prior weAk. ••• ORD = Dividends Received Deduction. On7 ATTACHMENT NO. 3 Local Agency Investment Fund Interest Rates July 99 through Feb OQ Month Rate July 5.1790% August 5.2250% September 5.2740% October 5.3910% November 5.4840% December 5.4900% January 5.7710% February 5.8240% INVESTMENT ADVISORY BOARD Meeting Date: TITLE: April 12, 2000 Consideration of June 14, 2000 meeting date change BACKGROUND• Business Session No. C 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 the June 18, 2000 City Council meeting and to meet Staff's planned vacation schedule, Staff is proposing changing the meeting date from June 14, 2000 to June 7, 2000. RECOMMENDATION: Approve the June meeting date change from June 14, 2000 to June 7, 2000. n M. Falconer, Finance Director CITY OF LA QUINTA Investment Policy Table of Contents Section Top Page Executive Summary 2 General Purpose 5 II Investment Policy 5 III Scope 5 IV Objectives 6 ► Safety ► Liquidity ► Yield ► Diversified Portfolio V Prudence 7 VI Delegation of Authority 7 VII Conflict of Interest 8 Vlll Authorized Financial Dealers and Institutions 8 ► Broker/Dealers ► Financial Institutions IX Authorized Investments and Limitations 10 Investment Pools 14 XI Safekeeping and Custody 14 XII Interest Earning Distribution Policy 15 XIII Internal Controls and Independent Auditors 15 XIV Benchmark 17 XV Reporting Standards 17 XVI Investment of Bond Proceeds 18 XVII Investment Advisory Board - City of La Quinta 18 XVIII Investment Policy Adoption 19 Appendices: A. Summary of Authorized Investments and Limitations 20 B. Municipal Code Ordinance 2.70 - Investment Advisory Board 21 C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 22 D. Segregation of Major Investment Responsibilities 24 E. Listing of Approved Financial Institutions 25 F. Broker/Dealer Questionnaire and Certification 26 G. Investment Pool Questionnaire 27 H. Glossary 35 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 Quints. 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. Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. 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 2 timely preparation and accurate reporting of the portfolio financial information. As part of the annual audit of the City of La Quinta's financial statements the independent auditor reviews the adequacy of those controls and comments if weaknesses are found. 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 Investment Policy 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 A - Summary of Authorized Investments and Limitations. At least two bids will be required of investments in the authorized investment vehicles. Collateralization will be required for Certificates of Deposits in excess of $100,000. Collateral will always be held by an independent third party► from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateral ization policies must be supplied to the City and retained by the City Treasurer. The City of La Quinta Investment Policy 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 is investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity doles 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 Investment Policy 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, 2000 through June 30, 2001 Adopted by the City Council on 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. 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 as the primary objective 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 Projects ► Debt Service ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. .19 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 t'he 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 sufficient liquid funds are available to meet anticipated demands. Furthermore since all possiblecash demands cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. 0 3. Yield The investment portfolio shall be designed with the market rate of return throughout budgetary and ecoi account the investment risk constraints and liqui investment is of least importance compared to the safE described above. The core of investments are limi securities in anticipation of earning a fair return r objective of attaining a comic cycles, taking into Jity needs. Return on ty and liquidity objectives :ed to relatively low risk ;lative 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. 4. Diversified Portfolio Within the constraints of safety, liquidity and yield, the City will endeavor to maintain a diversified portfolio by allocating assets between different types of investments within policy limitations. ORIIJ 014 \ The City shall follow the Uniform Prudent Investor Act as'adopted by the State of California in Probate Code Sections 16045 through 1605411. Section 16053 sets forth the terms of a prudent person which are as follows: Investments shall be made with judgment and care - uihder 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. LW 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 C01 collateral/depository agreements. Such procedures shall incl(de 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 nager or Assistant Citv execution by the City Treasurer. VII CONFLICT OF INTEREST Investment responsibilities carry added duties of insuring t 'at investments are made without improper influence or the appearance of improper i fluence. 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 tho City Treasurer shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City placed investments, with the exception of regular savings, checking and money r narket accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Such accounts shall be disclosed annua�ly to the City Clerk in conjunction with annual disclosure statements of ec6nomic interest. IN. All persons authorized to place or approve investments shall report to the City Clerk kinship relations with principal employees of fi1rms with which the City places investments. Vill The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. In addition a I st 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 7 ► Resume of Financial broker ► Completion of the City of La Quinta Broker/Haler questionnaire which contains a certification of having read the City; of La Quinta Investment Policy The City Treasurer shall evaluate the documentotion submitted by the broker/dealer and independently verify existing report's on file for any firm and individual conducting investment related business. 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 rep its filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall rovide 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 deposit or investment: A. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC) B. Collateral - The amount of City of La Quinta deposits or investments not insured by the FDIC-sh�ll be 1 10% collateralized by securities' or 150% mortgages' marl�et values of that amount of invested funds plus unpaid interest e�rnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Annual Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collater lization in public monies. I ' ■ i ► 11 ►&Vilol 111111 Wil I fill1 The City Treasurer will be permitted to invest in the invest ents summarized in the Appendix A. As provided in Sections 16429.1, 53601, 5360 .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 und (-AIF) - As authorized in Government Code Section 16429.1 and by LAIF proc dures, local government agencies are each authorized to invest a maximum o $30 million per account in this investment program administered by the California State Treasurer. The City's investment in the State Local Agency Investment Fund (LAIF) is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City of La Quinta has two accounts with LAIF. The City of La Quinta Investment Policy has a limitation of 3 25%(`?) of the portfolio. U.S. Government and Related Issues - As authori ed 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 indebtednes 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 bills, notes and bonds directly i sued and backed by the full faith and credit of the U.S. Government The City of La Quinta Investment Policy limits investments in U.S. Treasury issues to 75% of the portfolio. • U.S. Government agencies issuing securities k interest by the full faith and credit of the U.S. ( National Mortgage Association (GNMA) is suc La Quinta Investment Policy has a limitation of 9 acked as to principal and 3overnment. Government h an agency. The City of 75% of the portfolio with a single issuer limit of 25% of the portfolio. • U.S. Government instrumentalities and agenc es issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. The Federal Home Loan Bank (F LB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB) are such issuers. The City of La Quinta Investment Policy has a limitation of 75% of the portfolio with a ingle issuer limit of 25% of the portfolio. • Federal government sponsored enterprises (G Es) issuing securities not backed as to principal and interest by the full faith and credit of the U.S. Government. These GSEs include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHMC) and Student Loan Marketing Association (SLMA) which are publicly owned. The City of La Quinta Investment Policy has a limitation of 75% of the portfolio with a single issuer limit of 25% of the portfolio. Bankers' Acceptances - As authorized in Government Code Section 53601 (f), 40% of the portfolio may be invested in Bankers' Acceptances, although no more than 30% of the portfolio may be invested in BE nkers' 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 Investm nt Policy does not allow investment in Bankers' Acceptances. Commercial Paper - As authorized in Government Code Section 53601(g), 15 % of the portfolio may be invested in commercial paper of the highest rating (A-1 or P-1) as rated by Moody's or Standard and Poor' , with maturities not to exceed 180 days. This percentage may be increased to 30% if the dollar weighted average maturity does not exceed 31 days. The City of La Quinta Investment Policy only allows investments in comme cial paper to 30% of the portfolio with a maximum maturity of -3@ 00 or 90 d 3ys per issue. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City of La Quinta Investment Policy also limits Commercial Paper to no more than $1 million dollars in any one entity at any time for no more than 30 days. Negotiable Certificates of Deposit - As authorized in C 53601(h), 30% of the portfolio may be invested in deposit issued by commercial banks and savings an City of La Quinta Investment Policy does not allow 10 iovernment Code Section negotiable certificates of d loan associations. The investment in Negotiable Certificates of Deposit. Repurchase and Reverse Repurchase Agreements - As uthorized 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 e 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 Rep rchase Agreements. The term "reverse repurchase agreement" means the sale of securities by the local agency pursuant to an agreement by whic 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 - As authorized in Government Codil Section 53601 (j), 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. The City of La Quinta Investment Policy does not allow investment in corporate notes. Diversified Management Com ap Hies - As authorized in Government Code Section 53601 (k), local agencies are authorizec to invest in shares of beneficial interest issued by diversified management ompanies (mutual funds) in an amount not to exceed 20% of the agency's por folio. There are a number of other qualifications and restrictions regarding Ilowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment adv sor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,00 ,000). The City of La Quinta Investment Policy only allows investments n mutual funds that are money market funds maintaining a par value of $1 per share that invests in direct issues of the U. S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 60/90 day and the City limits such investments to 20% of the portfolio with a maximum imit of two (2) million per mutual fund. 11 Mortgage -Backed Securities - As authorized in Gi 53601(n), local agencies may invest in mortgage-b mortgage pass -through securities and collateralized n maximum period of five years in an amount not to exc portfolio. Securities eligible for investment shall hay The City of La Quinta Investment Policy does not allov Backed Securities. Financial Futures and Financial Option Contracts - As Code Section 53601.1, local agencies may invest in i contracts in any of the above investment categories s portfolio limitations. The City of La Quinta Investm investments in financial futures and financial option i )vernment code Section acked securities such as iortgage obligations for a eed 20% of the agency's ,e a "A" or higher rating. investment in Mortgage - authorized in Government inancial futures or option abject to the same overall ;nt Policy does not allow ;ontracts. Certificates of Deposit - As authorized in Government Code Section 536491 Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. There are no portfolio limits on the amount or maturity for this investment vehicle. Collateralization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is I mited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit o the City. Evidence of compliance with State Collateral ization policies must be supplied to the City and retained by the City Treasurer as follows: 1 . Certificates of Deposits Insured by the FDIC. The City Treasurer may waive collateralizat federally insured. ��O?mt on of a deposit that is The amount not federally insured shall be 110% collateralized by securities or 150% mortgages market value ol that amount of invested funds plus unpaid interest earnings. The City of La Quinta Investment Policy limits the per entage of Certificates of Deposit to 60% of the portfolio. Sweep Accounts - As authorized by the City Counci , a U.S. Treasury Money Market Sweep Account with a $50,000 target bala ce may be maintained in conjunction with the checking account. 12 Derivatives - The City of La Quinta Investment investment in derivatives. ►AWL 11 N;Lelej Policy does not allow 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 Investment Policy has authorized 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 account is restricted to a maximum investable limit of $30 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 Inves ment 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 allow investments with any other Inve or Third Party Pools. 1[Civil► • lent Pool - County Pools All security transactions of the City of La Quinta Investment Policy 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, roker or dealer Money market mutual funds and LAIF shall also operate on a DVP asis to be considered for investment. Interest earnings is generated from pooled investments and specific investments. Pooled Investments - It is the general policy of the City to pool all available 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: 13 A. Payment to the General Fund of an amount equ I 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. XIII INTERNAL CONTROLS AND INDEPENDENT AUDITOR 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 gua�rantee ab solute 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: Collusion is a situation where two or more employees a. Control of collusion. Co are � working in conjunction to defraud their employer. b. Separation of transaction authority from ecceuntiny and recordB ee��. y 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 an bank or dealer including appropriate collateral (as defined by State Law) hall be placed with an 14 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. The System of Internal Controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City of La Quinta's Financial Statements. The independent auditor's 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 auditor's letter. The management letter comments pertaining to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. 15 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 Investment Policy 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 Investment Advisory Board 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 cash and investments under the authority of the Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by City Treasurer; ► A listing of Purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A comparison of actual and surplus funds; ► A year to date historical cash flow analysis and projection for the next six months. 1 11 1 • a•1• ';• The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. 16 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 usually meets on a monthly basis, but at least quarterly 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. ► ►, P ► '• 96a i Lei 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. 17 Appendix A E E X Lo E a� �O N a U) U w c a) E U > C O N .T� o E 0 7 d v N c U U C en O U a c o n. a U 3 c (o a�$ E �U c N d 0 m E 3 E X cc a) c 0 0 U N a) a ; E N 'C 0 f0 7 U'o c 7 c o a g o y V Q c = O m (w5 U LL LL m 0.2 m °� > U rnr c m E.� E � 54 N N N N cr) N (D N O C N a) a) Q x 7 O C C U L U N LLco E a Oa .0 N H a� C.0 o 0)° O C O. - .X l0 O 0 (D 00 N a > a) •N o w cLo- E O o O « O 7 U 0) f11 O w O O O O co C O Q v cM y 02 fA 3 d `) g O �o 2 0 c B o o ° g o E r X LL O O O O o 0 O o 0 O M U) a a a a Li a a a 0 0 0 - pro a - a? U•- o o O O O O ('7 O N O O O O N O O O O fn O O 0 O 0 O 0 O 0 O C 0o 0 C 0o E x O a a a a act N a aN y Q Z (o o 0 0 0 0 �— o o-- 11 LLO co O f0 LO r-_ LO r-M O co H M 0 (a u01 r Qc Q N y N 0 O y N c o O �o U a jj c « E co O. C N Lu y O to U c p X EL day oc O U U O U x LL ui 0 c C O w C 4) - 0— u c C' `° c a�0 w Z c E c Q ap U y 7-d co 0 E"¢ mLL = a. > 2 y j U `� o O ,� U. N Z - c a) c (o v ° C7 cc�v c ° V O O w uoi C N N co c y' co N C uQ u°n = o Cl 0 t m d m� O LL 2 y O �mU co -j LL Q g M > > c v y 7 C L Z C U N ° LLL. O1 y 0 0 0 C c C N r LL y° 'a U CO a c -OM of c 0 o m U O c c U U w h y c 0 0 8j O M Lo v N to a E j O c a) C d U c O N _ L- co C� O J m U 0 J o > O° E E E p m y0Z o E•o €€ E E' �O c Oifl tM tM ,a aoi U OMOc E 0 EZM�Li 2 E E C c (p U N ° c Y w af0i a c,E m m m m C9 B,ivvvvv U rn a ErL 3 0 E N 0 m 4Ti O O > H L U U N N > M U 0 0 LL LL LL LL LL LL > E c a � c 5 d M M F" Z w N w z w N w O x Z N c C w (o :5 7 E cu cu w- E .U) T c a c Y a N 4)E 4.) a°i NCo Cc aa)Q N y O " E d c N Cwt OC aUjt a r o n) UA E a) :3 U U C Z @-i YO CL O Q 7 a) .D 'a U L_` � coo 0 u mo � O a c D D aD E cc 07 M N U E C O1 C M (o U W C N C M C E (o o U w o U Z m o m 5 CD Q m U o m w v E . N N c o y w U E y a y > U c c E o c y �0 v? o d rn 0.2 > c U U O O M° Ln U N _ in O a U O U �y N N oo me a) coW o 7 E > a U rn N C 0 2 v � OL i) C �d O Z N U N Q y -Q 4 U N or NC o U =m U0 cc E °�Lo >, f6 V a a) U O N 4 Y 4) v 0 v >.c N E? in m U O EU C �O U Uf 'a 0@ j N C � Co c (� w o L co U E L a > m y O U o v 3 c O V U in d 0 lT '- •lG 3 M O N« • L ? Na N U f°C .L.-° C O > Ew N_ m co (M 0 C a) '-' j U N 'C > voi �e o• m e Ci 0 y v 0 off" ao �@ O Ea aoic a a) a) c a) w C a a) a s -o c= c�0 o m c c y in- �� N C co a C a) w U •Of O° E to V V O N E o 0 E N N m O to y C N 'O C.0aUUo E o 2 °Ec oCog (�V•w�O a Q ) N n� N a a (D G U) U O L-- O O c cM2 ('a NU -win E cy _od a F-c QJQE yU v Cl)LO (D IL 'O N ao ° Lu w o�c � av`ni0 oa�m �c N o m C E �- L w E U d O ul CMOa) a)tn:r aLo aU > c2�nc co 0'0-O d U O N C � 2 yp- cw m- L v E co a c aC .Z:N a —O T 0 -O y a> �v « Co j C rC � > w E C. c > °) �7 O X �CUCO a) N 2. 7 E C a U U L C `tn N T O y co C ^ O EE .c U >>>.. E 7 N (o C U U U E= C v (n�o D U N N oo f0 N U 0 CL Ems'>vo) o c y U) 4) co i TN C N,U Eo:U U Nwv a`ni N a) •- U LL - >Ewc Appendix B Chapter 2.70 INVESTMENT ADVISORY BOARD PROVISIONS Sections: 2.70.010 General Rules Regarding Appointment. 2.70.020 Board meetings. 2.70.030 Board functions. 2.70.010 General rules regarding appointment A. Except as set out below, see Chapter 2.06 for General Provisions. B. 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". C. 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. D. 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 that have a bearing on the appropriateness of that member's service on the board. Such matters may include, but are not limited to, changes in employment, changes in residence, or changes in clients. 2.70.020 Board meetings. The Board usually will meet monthly, 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. A. The principal functions of the Board are: review at least annually the City's Investment Policy and recommend appropriate changes; (2) review monthly Treasury Report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with the independent auditor after completion of the annual audit of the City's financial statements, and receive and consider the auditor's comments on auditing procedures, internal controls, and findings for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters such as proposed investments, internal controls, use of change of financial institutions, custodians, brokers and dealers. B. The Board will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. 19 Appendix C 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 securi ies. Pursuant to, and in accordance with, and to the extent (lowed by, Sections 53607 and 53608 of the Government Code, the authority o invest and reinvest moneys of the city, to sell or exchange securities, and to d posit them and provide for their safekeeping, is delegated to the city treasurer. (Oro. 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) 20 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. (�rd. 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 depI sitory authorized by the terms of any state law, including but not limited to Section 3608 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) 21 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function ResponOibilities 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 Manager Record investment transactions in City's accounting records Accounting Manager 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 22 Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank,l, Government Services, Ontario, California 2. Custodian Services - Bank of New York, Los Angeles, California 3. Deferred Compensation - International City)/County Management Association Retirement Corporation 4. Broker/Dealer Services - Merrill Lynch, Indianl, Wells, CA Morgan Stanley Dean Witter, San Francisco, California Salomon Smith Barney, Newport Beach, CA 5. Government Pool - State of California Local Agency Investment Fund City of La Qui�,nta Account La Quinta Redevelopment Agency 6. Bond Trustees - 1991 City Hall Revenue Bonds - US Bank 1991 RDA Project Area 1 - US Bank 1992 RDA Project Area 2 - US Bank 1994 RDA Project Area 1 - US Bank 1995 RDA Project Area 1 & 2 - US Bank Assessment Districts - US Bank No Changes to this listing may be made without City Council approval. 23 Appendix F BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm: 2. Address: 3. Telephone: ( ) ( ) 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) 5. 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: Telephone: ( ) ( 1 7. 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 % BA's % Commercial Paper % CDs % Mutual Funds % Agencies (specify): 24 % Repos % Reverse Repos % CMO`s % Deriv' tives • Stoc s/Equities • Other!, (specify) : 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact Telephone Entity Contact Telephone Client Since 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? Havf a any of your employees been so investigated? If so, 12. Cx�ian�. i Has a client ever claimed in writing that you were re investment loss? Yes No action taken ponsible for an If yes, please provide Has a client ever claimed in writing that your fe 10was investment loss? Yes No action taken responsible for an If yes, please provide L 25 Do have an current or pending complaints that are unreported to the � Y � P � P P NASD? Yes No If yes, please provide action taken 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, cus�ody and delivery process. Who audits these fiduciary responsibilities? P Report Date Audit Re Latest p 14. How many and what percentage of your transactions failed. Last month? % $ Last vear? % $ 15. 16. 17. our firm would use to establish Describe the method � Y the City of La Quinta. ca trading capital P 9 limits for Is your firm a member in the S.I.P.C. insurance program If yes, explain primary and excess coverage and carriers. . Yes No i i What portfolio information, if any, do you require from II � our clients. i 26 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 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date._ 21. Please list your NASD Registration Number, 22. Do you have any relatives who work at the City of Lo 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 Ouinta. 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 Quinto 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. 27 i 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 Appendix G INVESTMENT POOL QUESTIONNAIRE Note: This Investment Pool Questionnaire was developed byl 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 rihaturity, yield to maturity, etc.) b. The frequency of interest. payments? 29 i 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? 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? pool report, and does that 4. How often does the p p 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? 0v� 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)? OPERA TONS 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 lipermitted? 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? 1 1 . What are the procedures for making deposits and wilf hdrawals? a. What is the paperwork required, if any? b. What is the wiring process? 12. Can an account remain open with a zero balance? 31 13. Are confirmations sent following each transaction? STA TEMENTS It is important for you and the agency's trustee (wher statements monthly so the pool's records of your activity a by you and your trustee. 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 th 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 r the pool qualifies with the U.S. Department of the TrE commingled fund for arbitrage purposes. applicable), to receive d holding are reconciled fee) ? )roceeds and (2) whether :asury as an acceptable 1. Does the pool accept bond proceeds subject to arbitrage rebate? 2. Does the pool provide accounting and investment record suitable for proceeds of bond issuance subject to arbitrage rebate? 3. Will the yield calculation reported by the pool be accep able 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 bone commingle the interest ea(nings of funds subject to reba to regulations? 32 issue so that you do not with funds not subject GLOSSARY (Adopted from the Municipal Treasurers ssociation) Appendix H 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 and/or Government -sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. 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): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. 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: Short-term 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. 33 COMPREHENSI E 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) he 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 evid ncing interest due on a payment date. 7 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the is uer. 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 ne or more underlying index or security, and ay include a leveraging factor, or (2) financial co tracts 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 3. below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g., U.S. Treasury Bills. 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. 1. FNMAs (Federal National Mortaaoe 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 34 4. 5. A 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- nnual coupons. Interest is calculated o a 360-day, 30-day month basis. 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 from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual oupons. Interest is calculated on a 360-day, 0 day month basis. 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 periodi basis. These issues are highly liquid. 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, 3 -day month basis. Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Ho a Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are is ued 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 DEPOSITOR 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. 35 GOVERNMENT ASSOCIATION influencing the by GNMA and commercial banl and other institu- by full faith anc Ginnie Mae secu or FMHM mortg; often used to d( NATIONAL MORTGAGE 3NMA or Ginnie Mae): Securities ,olume of bank credit guaranteed issued by mortgage bankers, .s, savings and loan associations, :ions. Security holder is protected credit of the U.S. Government. rities are backed by the FHA, VA ages. The term "passthroughs" is scribe Ginnie Maes. 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 minimu investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $30,000,000 f r any agency. The City is restricted to a maximurn of ten transactions per month. It offer3 high liquidity because deposits can be convert d 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 tinie 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 iquid 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 o be liquid if the spread between bid and asked p ices is narrow and reasonable size can be done at hose quotes. LOCAL GOVE INMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions tha 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. 36 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has seg egated for the benefit of the commission eligi le collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based o its purchase price or its current market price. This may be the amortized yield to maturity on a b nd the current income return. REPURCHASE AGREEMENT (RP OR REPO): A repurchase agre ment 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 agr ements are typically for one to ten days in maturity. The customer receives interest from th m. 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 $1001000 to $ 00,000, but most banks have a minimum of $1, 00,000. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase the at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money, that is, increasing bank reserves. 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 vaul s 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 necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. 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. 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. 37 UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities mai ritain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net cap tal rule and net capital ratio. Indebtedness c vers all money owed to a firm, including marg n loans and commitments to purchase securi ies, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily co verted 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 s 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 oft a bond. INVESTMENT ADVISORY BOARD Meeting Date: April 12, 2000 TITLE: Month End Cash Report - March 2000 BACKGROUND: Corr spondence & Written Mat rial Item A This cash report is not a complete Treasury Report (exc compensation and fiscal agent balances, ) but would rel selected cash balances. This report also includes other for the Board to review. RECOMMENDATION: Information item only. M. Falconer, Finance Director ude petty cash, deferred )ort in a timely fashion statistical investment data V- O a a� [L' 0 0 6 N J_ W M O U o (`0 U � � 00 r Of- (^O V^ O 'T r � CO r (O v IT CO pp lOnON CO `- �_ 00MOMwInrOCON N r M N (O LA q � M Co CD O� N 00 O N r N I- CN lA N Co M N 0 M N (A 000 v 00 N EO-r O n OOMr O M��0M N001n Oj cMhOOC) 00 Cf)V'T' Cr) V'Cl"N N�00 r 00 Cl) R N N CDN v Cf) �N V A _N Ci IC,O iEM v O Q) CO (O N M to y N N N r 0 (� (n C N N N N -- M N CO (f) CO " O CO CO (O M N 06 )` B O O �� 04 NC cIq 0) IC14 - MM � a) C N N N I` 00 , (n 4 0o O O M r M (O 0 co 0 N O N CA N r r r 0 N V' N 0 N CD N CA O O O O O O N O Q W) LO co r LO LO N NV N N N N N_'Qr N ti 00 O M M (ry N r r IT V V R ' ? 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Arno. > o w 00))8zoo tQci� a �a Una 1 O � O O a) L v a T5 Y > 0 0 7 cpp a d: f0 y O � �•� U o CL N y y N rL-a) O L ao C d-Q O H C (0 O L O m y � N o L C v U N O `O r v 0 R CL 'C a t� V) O VO) C y a) C N O w m C O yy� •(n Y 3 30 0 > .L >, C N 0 0 U w y C N w 7 ram. O 'a ` yQ � N N 0(�A > N a 0 •C L ~ N .� a) L � O C u - a) (o �C O C Y ao 7 t 0 r+L. a C 0) (0 0 L U �•C a � 0 H O C >+ C C N C y N O 0.0.4) o O m 00 WC)0-0 o y O t O O () y C l0 t '� L w V y a) (.i 0 N N r > N U ++ C N 0 OiL O CL 2 � ) d a y y a) y o C C ca :3 ca C d C 0 ` C O (1) y .L m y N 3 C aR - d f6-00 m a) a) 0 (0 o r- O w y U fl a �- N _ •C C (n U 0. m 0) o rn� `CQ a,y ds 7 X a) ao ± aH m R y r >tm 0 0 0 >, o 8 C N O °) vi c O 0 y ,� w 0 3 3 a (1) y U a) C O a) O a) U a) (0 c d tL F- w !- N V) C Q..Q 002 FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Federal. Reserve Release Commercial Paper Release I About I Outs'tandings I Historical discount rates I Historical outsjtan� Data as of April 4, 2000 Commercial Paper Rates and Outstandin s Derived from data supplied by The Depository Trust Company Posted April 5, 2000 Discount rates AA AA A2/P2 financial nonfinancial nonfinancial r ............ 5.99 5.98 6.09 a 6.17 6.02 6.00ME IN 6.03 6.00 6.20 gay 6.03 6.02 6.21 11'"'"6 0505 ( 6.05 6.23 6.10 6.11 6.29 Yield curve Money market basis 1 7 15 30 SD Gays to �Matu rR3r Volume statistics 2000: 1 Percent it -A Fineneiol --� —Nonfinancial ••••• A2/P2 Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) 01 MAAY98 09AU Gg8 17N OV98 25FE Bg9 05J U N99 13SEP99 220 — — — A2/P2 spread, 5—day moving eve loge Basis points 6.3 6.30 6.25 6.20 6.15 6.10 6.05 6.00 5.9 5 110 100 90 80 70 £0 50 40 30 20 10 31 MMAROO 09L1 u l00 .003 1 of 3 04/05/2000 2:22 PM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Relea.ses/CP/ Discount rate history Thirty -day commercial paper (daily) 1 i fL1 -AM ��1 01 MAY98 09AUG98 17 NOV98 25FES99 05J U N 9g 13SE P99 22❑ EC9 _ Finaneinl — — — Nonfinaneial ••••• A2/P2 Percent t 8 7 5 r4 31 MARoo 09J u LO0 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars Billions of dollars 1200 310 300 290 1100 „ 280 270 1000 2 EC 2.50 24D 9r�0 230 220 WO 210 01 MAY98 ODAUG98 17N OV9B 25 FES99 05J U N99 13SE P9g 22❑ EC99 31 MAROO _ �naneial --- Nanfinanagl The daily commercial paper release will usually be available before 1 1:C Oam EST. However, the Federal Reserve makes no guarantee regarding the timing of the daily c mmercial paper release. When the Federal Reserve is closed on a business day, yields for the pre ious business day will appear in the historical discount rates table. This policy is subject to ch ge at any time without notice. 004 2 of 3 04/05/2000 2:22 PM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/ Commercial paper outstanding Commercial paper outstanding, miscellaneous categories Release I About f Outstandings I Historical discount rates l Hi Home I Statistical releases To comment on this site, please fill out our feedback form. Last update: April 5, 2000 0 05. 3 of 3 04/05/2000 2:22 PM FRB: H.15--Selected Interested Rates, Web -Only Daily Update --April 5, 2000 http://www.federalreserve.gov/Releases/H 15/update/ Federal Reserve Statistical Release itielected Interest Rates Release Date: April S, 2000 H.15: Release I Release dates I About I ASCII I Historical data I Daily u H.15 Daily Update The weekly release is posted on Monday. Daily updates of the weekly re ease are posted Tuesday through Friday on this site. H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate releas SELECTED INTEREST RATES April 5, 2000 Yields in percent per annum Mon Tue Apr 3 Apr 4 Instruments SELECTED INTEREST RATES Federal funds (effective) 1 2 3 6.15 5.98 Commercial paper 3 4 5 6 Nonfinancial 1-month 6.04 6.02 2-month 6.06 6.05 3-month 6.10 6.11 Financial 1-month 6.03 6.03 2-month 6.11 6.05 3-month 6.13 6.10 Bankers acceptances (top rated) 3 4 7 3-month 6.16 6.18 6-month 6.33 6.33 CDs (secondary market) 1-month 6.09 6.08 3-month 6.23 6.24 6-month 6.49 6.49 Eurodollar deposits (London) 3 9 1-month 6.06 6.06 3-month 6.22 6.22 6-month 6.47 6.47 Bank prime loan 2 3 10 9.00 9.00 Discount window borrowing 2 11 5.50 5.50 U.S. Government securities Treasury bills Auction high 3 4 12 3-month 5.71 009 1 of 3 04/05/2000 2:23 PM FRB: H.15--Selected Interested Rates, Web -Only Daily Update --April 5, 2000 http://www.federalreserve.gov/Releases/H15/update/ 6-month 5.90 1-year Secondary market 3 4 3-month 5.69 5.67 6-month 5.88 5.84 1-year 5.88 5.80 Treasury constant maturities 3-month 5.87 5.83 6-month 6.18 6.10 1-year 6.23 6.14 2-year 6.45 6.35 3-year 6.41 6.29 5-year 6.30 6.16 7-year 6.25 6.15 10-year 6.00 5.90 20-year 6.19 6.12 30-year 5.84 5.77 Composite Over 10 years (long-term) 14 6.13 6.06 Corporate bonds Moody's seasoned Aaa 7.57 7.55 Baa 8.30 8.28 State & local bonds 15 Conventional mortgages 16 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 2 of 3 FOOTNOTES The daily effective federal funds rate is a weighted average of rates on trades through N.Y. brokers. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. Annualized using a 360-day year or bank interest. On a discount basis. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages (http://www.federalreserve.gov/releases/cp) for more information. The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page. Representative closing yields for acceptances of the highest rated money center banks. Source: Telerate, Inc. An average of dealer offering rates on nationally traded certificates of deposit. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Rate posted by a majority of top 25 (by assets in domestic offices) insured U.S.-chartered commercial banks. Prime is ore of several base rates used by banks to price short-term business loa s. Rate for the Federal Reserve Bank of New York. Auction date for daily data; weekly and monthly averages computed on an issue -date basis. Data are stop yields from u iform-price auctions, rounded to two decimal places. (The U.S. Ireasury publishes stop yields to three decimal places at http://www.publicdebt.treas.gov). Yields on actively traded issues adjusted to constan maturities. Source: U.S. Treasury. 00 04/05/2000 2:23 PM FRB: H.15--Selected Interested Rates, Web -Only Daily Update --April 5, 2000 http://www.federalreserve.gov/Releases/H 15/update/ 14. Unweighted average of rates on all outstanding bonds callable in less than 10 years. 15. Bond Buyer Index, general obligation, 20 years to ma quality; Thursday quotations. 16. Contract interest rates on commitments for fixed -rat Source: FHLMC. DESCRIPTION OF THE TREASURY CONSTANT MATURITY ither due nor ity, mixed first mortgages. RIES Yields on Treasury securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reser-ve Bank of New York. The constant maturity yield values are read frou the yield curve at fixed maturities, currently 3 and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 1C years remaining to maturity. In estimating the 20-year constant maturity, the Treasury incorporates the prevailing market yield on an outstanding Treasury bond with approximately 20 years remaining to maturity. H.15: Release I Release dates I About I ASCII I Historical data I Daily up Hoene I Statistical releases To comment on this site, please fill out our feedback form. Last update: April 5, 2000 n(-1$ 3 of 3 04/05/2000 2:23 PM LAIF Performance Report, Philip Angelides http://www.treasurer.ca.gov/Stolperf.htm Philip Angelides, StAte Treasurer Inside the State Treasur0's Office Local Agency Investment Fund LAIF Performance Reporting Date: 03/29/00 Effective Date: 03/28/00 Quarter Yield: 5.81% Daily: 5.89% Year: 5.51% Life: 186 Quarter Ending 12/31/99 Apportionment Rate: 5.49% Earnings Ratio: .000150057 Fair Value Factor: .997869313 Monthly Average For February: 5.824% n n.9 I of 04/05/2000 2:23 PM LAIF Performance Report, Philip Angelides http://www.treasurer.ca.gov/Stolperfhtm Corporate Bc 7.1 Commercial Paper 2.68% Pooled Money Investment Ac aunt Portfolio Composition $34.8 Billion 2129I00 Reverses Loans-0.74°Io Treasuries C D's/B N's 21.6% 1. Deposits 8.66% Mortgages 6.04% Agencies 24.85% ■Treasuries ❑ Time Deposits ■ Mortgages isAgencies ■ C D's/B N's ■ Commercial Paper ■ Corporate Bonds El Loans ■ Reverses ni it 2 of 2 04/05/2000 2:23 PM INVESTMENT ADVISORY BOARD Meeting Date: April 12, 2000 Pooled Money Investment Board Report for January 2000 Correspondence & Written Material Item B The Pooled Money Investment Board Report for January, 000 is included in the agenda packet. Receive & File / —izc'zl-� n M. Falconer, rinance Director STATE OF CALIFORNI STATE TREASURER'S OF ICE POOLED MONEY INVESTMENT BOARD REPORT JANUARY 2000 TABLE OF CONTENTS SUMMARY .............................................. . SELECTED INVESTMENT DATA ................. 1 ........................... 1 ............................2 PORTFOLIO COMPOSITION ...................... ............................3 INVESTMENT TRANSACTIONS..............................................4 TIME DEPOSITS ....................................... J..........................15 DEMAND BANK DEPOSITS ........................ ..........................23 POOLED MONEY INVESTMENT BOARD DESIGNATION .......... 24 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JANUARY 2000 WITH JANUARY 1999 (DOLLARS IN THOUSANDS) JANUARY 2000> Ji4NUARY 1999 CtiAA1G� Average Daily Portfolio $ 35,750,385 $ 35,563,802 $ +186,583 Accrued Earnings $ 174,413 $ 159,024 $ +15,389 Effective Yield 5.760 5.265 +.495 Average Life -Month End (In Days) 193 184 +9 1 Total Security Transactions Amount $ 15,348,246 $ 14,656,462 $ +691,784 Number 341 328 +13 Total Time Deposit Transactions Amount $ 1,420,990 $ 10358,290 $ +62,700 Number 112 88 +24 Average Workday Investment Activity $ 838,462 $ 842,882 $ -4,420 Prescribed Demand Account Balances For Services $ 196,125 $ 189,020 $ +7,105 For Uncollected Funds $ 259,082 $ 201,336 $ +57,746 1 r PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVES MENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENTACCOUNT PORTFOLIO (000 OMITTED) JANUAR 31, 2000 PERCENTAGE CHANGE FROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills $ 1,557,466 4.27 +0.19 Bonds 0 0.00 0 Notes 2,347,990 6.44 -0.45 Strips 0 0.00 0 Total Government $ 3,905,456 10.71 -0.45 Federal Agency Coupons $ 3,888,365 10.67 +.01 Certificates of Deposit 5,329,063 14.62 +1.38 Bank Notes 2,290,011 6.28 +.66 Bankers' Acceptances 0 0.00 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 4,692,542 12.87 -.17 Time Deposits 2,918,395 8.01 -.21 GNMAs 1,471 0.00 0.00 Commercial Paper 9,366,851 25.70 -.06 FHLMC 13,859 0.04 0 Corporate Bonds 2,540,633 6.97 0 Pooled Loans 2,097,002 5.75 -1.10 GF Loans 0 0.00 0 Reversed Repurchases 589,969 -1.62 +.25 Total (All Types) $ 36,453,679 100.00 INVESTMENT ACTIVITY JANUARY 2000 DECEMBER 1999 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 341 $15,348,246 464 $ 20,822,046 Other 1 1,146 32 27,568 Time Deposits 112 1,420,990 60 460,595 Totals 454 $16,770,382 556 $ 21,310,209 PMIA Monthly Average Effective Yield 5.760 5.639 Year to Date Yield Last Day of Month 5.422 5.359 2 Pooled Money Investment Account Portfolio Composition $36.4 Billion Reverses Loans _1.62% Treasuries CnrnnratP 5.75% i n 7 l o/ E Commercial Paper 25.7% CD's/BN's 20.9% Deposits .01 % Mortgages 0.04% ►gencies 23.54% 1 /31 /00 B Treasuries B Time Deposits ■ Mortgages Agencies B CD's/BN's 0 Bankers Acceptances ■ Repo Commercial Paper ® Corporate Bonds ❑ Loans ® Reverses 3 01 /03100 NO SALES NO PURCHASES 01/04/00 NO SALES PURCHASES CD CIBC 6.090% 07/27/00 6.090 50, CD CIBC 6.090% 07/27/00 6.090 50, CD Bayer Ver 6.070% 07/27/00 6.065 50, CD Bayer Ver 6.070% 07/27/00 6.065 50, CP U/B Calif 06/02/00 5.850 50, CP U/B Calif 06/02/00 5.850 50, CP U/B Calif 06/09/00 5.850 50, Disc Notes FHLB 12/01/00 5.865 50, Disc Notes FFCC 12/15/00 5.860 15, Disc Notes FHLB 12/29/00 5.840 50, Disc Notes FHLB 12/29/00 5.840 50, Treas Bills 12/07/00 5.685 50, Treas Bills 12/07/00 5.685 50, 01/05/00 REDEMPTIONS BN Fst Chic . 4.950% 01/05/00 4.950 33, PURCHASES BN B/A 6.050% 07/27/00 6.050 50,C BN B/A 6.050% 07/27/00 6.050 50,C CD WestDeut 6.000% 06/30/00 6.000 25,C CD UBS 6.010% 06/30/00 6.000 50,C CD UBS 6.010% 06/30/00 6.000 50,C CD CIBC 6.010% 06/30/00 6.000 50,C CD CIBC 6.010% 06/30/00 6.000 50,C CD Toronto 6.030% 06/30/00 6.020 50,C CD Toronto 6.030% 06/30/00 6.020 50,C CD Soc Gen 6.110% 07/27/00 6.105 50,C CD Soc Gen 6.110% 07/27/00 6.105 50,C CP U/B Calif 05/10/00 5.840 50,C CID B/A 06/01 /00 5.900 50,C CP B/A 06/01 /00 5.900 50,C Disc Notes FHLMC 07/06/00 5.800 50,C Disc Notes FHLMC 07/06/00 5.800 50,C Disc Notes FHLMC 07/06/00 5.800 50,C Disc Notes FNMA 12/28/00 5.830 50,C Disc Notes FHLB 12/29/00 5.840 10,C Disc Notes FHLMC 12/29/00 5.830 45,( Disc Notes FHLMC 12/29/00 5.830 50.0 366 1,660,725.00 5.018 4 01/06/00 REDEMPTIONS CD Bayer Lnds CD Bayer Lnds Disc Notes FHLMC Disc Notes. FHLMC Treas Bills Treas Bills Treas Bills Treas Bills RRP Treas Bills Treas Bills Treas Bills Treas Bills PURCHASES BN Banc One BN Banc One CD BNParis CD BNParis CP Amer Exp CP Amer Exp CP B/A CP B/A Disc Notes FFCB FHLMC 01/07/00 REDEMPTIOINS CD B/A CP FMCC CP FMCC CP FMCC CP FMCC CP FMCC PURCHASES BN Banc One BN Banc One BN Banc One CD BNParis CP Household CP Household CP Assoc CP Assoc CP FMCC 6.260% 01 /06/00 6.250 20,000 36 6.260% 01 /06/00 6.250 50,000 36 01 /06/00 5.350 50,000 48 01 /06/00 5.350 50,000 48 01 /06/00 4.272 50,000 345 01 /06/00 4.272 50,000 345 01 /06/00 4.333 20,000 363 01 /06/00 4.333 50,000 363 01 /06/00 4.820 20,000 36 01 /06/00 4.820 50,000 36 01 /06/00 4.785 50,000 48 01 /06/00 4.785 50,000 48 6.100% 07/27/00 6.100 50,000 6.100% 07/27/00 6.100 50,000 6.090% 07/27/00 6.080 45,000 6.090% 07/27/00 6.080 50,000 01 /28/00 5.480 50,000 01 /28/00 5.480 50,000 06/02/00 5.890 50,000 06/02/00 5.890 50,000 01 /05/01 5.860 50,000 6.350% 01 /05/01 6.360 50,000 125,001.24 6.336 312,503.10 6.336 356,666.67 5.463 356,666.67 5.463 2,047,239.58 4.516 2,047,239.58 4.516 873,972.92 4.594 2,184,932.29 4.594 (95,937.28) -4.886 (239,843.20) -4.886 (316,977.78) -4.851 (316,977.78) -4.851 4.990% 01 /07/00 5.020 50,000 365 2,544,124.54 5.089 01 /07/00 6.650 50,000 11 101,597.22 6.756 01 /07/00 6.650 50,000 11 101,597.22 6.756 01 /07/00 6.520 50,000 16 144,888.89 6.629 01 /07/00 6.460 50,000 17 152,527.78 6.569 01 /07/00 6.460 50,000 17 152,527.78 6.569 6.120% 07/31 /00 6.120 50,000 6.120% 07/31 /00 6.120 50,000 5.930% 10/02/00 6.300 50,000 6.090% 07/27/00 6.009 50,000 01/10/00 5.470 50,000 01 /10/00 5.470 50,000 01 /10/00 5.480 50,000 01 /10/00 5.480 50,000 03/29/00 5.640 30,000 5 4+ 1"^ s wwV 1 r rem. ,r van s 01/07/00 PURCHASES (continued) CP FMCC 03/29/00 5.640 50,C 00 Disc Notes FFCC 01/02/01 5.900 48,C 00 01/10/00 REDEMPTIONS CD Nova Scot 6.250% 01/10/00 6.250 50,C 00 33 286,458.33 6.336 CD Nova Scot 6.250% 01/10/00 6.250 50,C 00 33 286,458.33 6.336 CD Svenska 6.120% 01/10/00 6.120 50,C 00 70 595,000.00 6.204 CD Deutsche 6.050% 01/10/00 6.050 1 5,C 00 87 219,312.50 6.134 CD Deutsche 6.050% 01/10/00 6.050 50,C 00 87 731,041.67 6.134 CD ANZ 5.950% 01/10/00 5.920 50,(00 103 846,960.37 6.002 CD ANZ 5.950% 01/10/00 5.920 50,C 00 103 846,960.37 6.002 CP Assoc 01/10/00 5.480 50,C 00 3 22,833.33 5.558 CP Assoc 01/10/00 5.480 50,C 00 3 22,833.33 5.558 CP Household 01/10/00 5.470 50,C 00 3 22,791.67 5.548 CP Household 01/10/00 5.470 50,(00 3 22,791.67 5.548 CP Heller 01/10/00 6.700 25,C 00 14 65,138.89 6.810 CP FMCC 01/10/00 6.510 50,C 00 19 171,791.67 6.623 CP FMCC 01/10/00 6.510 50,C 00 19 171,791.67 6.623 CP Armstrong 01/10/00 6.900 15,(00 21 60,375.00 7.024 CP Household 01/10/00 6.020 50,C 00 73 610,361.11 6.179 CP Household 01/10/00 6.020 50,C 00 73 610,361.11 6.179 CP Morg Stan 01/10/00 6.100 50,C 00 73 618,472.22 6.262 CP Morg Stan 01/10/00 6.100 50,(00 73 618,472.22 6.262 CP Morg Stan 01/10/00 6.100 5,C 00 81 68,625.00 6.270 CP Morg Stan 01/10/00 6.100 50,C 00 81 686,250.00 6.270 CP Hertz 01/10/00 5.750 40,C 00 116 741,111.11 5.939 PURCHASES BN Banc One 6.120% 07/31 /00 6.120 50,C 00 BN Banc One 6.120%. 07/31/00 6.120 50,C 00 CD Nova Scot 6.050% 07/27/00 6.050 50,C 00 CD Nova Scot 6.050% 07/27/00 6.050 50,C 00 CD Deutsche 6.060% 07/27/00 6.050 50,C 00 CD Deutsche 6.060% 07/27/00 6.050 50,C 00 CP Amer Exp 01/18/00 5.530 50,C 00 CP FMCC 01 /27/00 5.540 50,C 00 PURCHASES r/ Treas Bills 01 /27/00 5.750 5, 39 Treas Bills 01 /27/00 5.750 50,(00 Treas Bills 01/27/00 5.750 50,(00 Treas Bills 03/09/00 5.750 50, 00 Treas Bills 03/09/00 5.750 50, 00 1.1 'POOLED M s, NEY INVE TMENT ACCOUNT sV al MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE HELD 01/11/00 REDEMPTIONS CP Amer Exp CP ConAgra CP Text Fin SALES sl Treas Bills Treas Bills Treas Bills Treas Bills Treas Bills PURCHASES Disc Notes FFCC Disc Notes FFCC Disc Notes FHLB Disc Notes FHLB MTN FR JP Morg MTN FR JP Morg 01/12/00 RRS Treas Notes REDEMPTIONS CD Montreal CP GECC CP GECC CP Amer Exp CP Country CP ConAgra CP ConAgra CP Morg Stan PURCHASES U/ CD ABN Amro PURCHASES CP GMAC CP GMAC CP ConAgra CP GMAC CP GMAC CP B/A CP B/A 01 /11 /00 6.250 50,000 14 121,527.78 6.352 01 /11 /00 6.800 40,000 22 166,222.22 6.923 01 /11 /00 6.370 50,000 28 247,722.22 6.490 01 /27/00 5.750 5,239 1 817.78 5.829 01 /27/00 5.750 50,000 1 7,805.15 5.829 01 /27/00 5.750 50,000 1 7,805.15 5.829 03/09/00 5.750 50,000 1 7,758.19 5.829 03/09/00 5.750 50,000 1 7,758.19 5.829 01/02/01 5.910 49,000 01 /02/01 5.910 50,000 01 /05/01 5.900 50,000 01 /05/01 5.900 50,000 6.110% 01 /11 /02 6.110 50,000 6.110% 01111 /02 6.110 50,000 5.500% 03/31 /00 5.350 50,000 6.250% 01/12/00 6.250 50,000 35 303,819.44 6.336 01/12/00 6.500 50,000 21 189,583.33 6.615 01/12/00 6.500 50,000 21 189,583.33 6.615 01/12/00 6.450 50,000 22 197,083.33 6.565 01/12/00 6.450 50,000 23 206,041.67 6.566 01/12/00 6.660 20,000 28 103,600.00 6.787 01/12/00 6.540 20,000 30 109,000.00 6.667 01/12/00 6.100 50,000 82 694,722.22 6.271 5.870% 03/31 /00 5.860 50,000 01 /13/00 5.540 50,000 01/13/00 5.540 50,000 02/29/00 5.770 18,100 05/10/00 5.810 50,000 05/10/00 5.810 50,000 06/01 /00 5.900 25,000 06/01 /00 5.900 50,000 7 '' It 01/12/00 PURCHASES (continued) MTN FIR B/A 6.070% 07/11/01 6.026 25,0(0 01/13/00 REDEMPTIONS BN B/A 6.450% 01/13/00 6.450 50,0(0 21 188,125.00 6.539 BN B/A 6.450% 01/13/00 6.450 50,0(0 21 188,125.00 6.539 BN B/A 6.450% 01/13/00 6.450 50,0(0 21 188,125.00 6.539 BN B/A 6.450% 01/13/00 6.450 50,0 0 21 188,125.00 6.539 CD Montreal 6.280% 01/13/00 6.280 50,000 41 357,611.11 6.367 CD Montreal 6.280% 01/13/00 6.280 50,000 41 357,611.11 6.367 CP GMAC 01/13/00 5.540 50,000 1 7,694.44 5.617 CP GMAC 01/13/00 5.540 50,000 1 7,694.44 5.617 CP Bear 01/13/00 6.520 5,000 21 19,016.67 6.635 CP Bear 01/13/00 6.520 50,0)0 21 190,166.67 6.635 CP ConAgra 01/13/00 7.000 15,0)0 22 64,166.67 7.127 CP Salomon 01/13/00 6.420 50,0)0 28 249,666.67 6.541 CP Salomon 01/13/00 6.420 50,0)0 28 249,666.67 6.541 CP ConAgra 01/13/00 6.620 30,0)0 30 165,500.00 6.749 CP Enron 01/13/00 6.300 48,5)0 35 297,062.50 6.426 PURCHASES BN B/A 6.110% 07/27/00 6.110 50, BN B/A 6.110% 07/27/00 6.110 50, BN Banc One 6.150% 07/31 /00 6.150 50, BN Banc One 6.150% 07/31/00 6.150 50, CP ConAgra 01 /1-8/00 5.620 20, CP Amer Exp. 02/29/00 5.650 40, CP Amer Exp 02/29/00 5.650 50, CP GECC 06/30/00 5.820 50, CP GECC 06/30/00 5.820 50. 01/14/00 REDEMPTIONS CP GMAC CP GMAC CP GMAC CP Enron CP Enron PURCHASES 01/14/00 6.260 50,0)0 31 269,527.78 6.381 01/14/00 6.260 50,0)0 31 269,527.78 6.381 01/14/00 6.260 50,0)0 31 269,527.78 6.381 01/14/00 6.430 25,0 0 32 142,888.89 6.556 01/14/00 6.430 50,0 0 32 285,777.78 6.556 CP Household 01 /18/00 5.420 50, CP Household 01 /18/00 5.420 50, CP Household 01 /18/00 5.420 50, CP Bear 01 /18/00 5.920 50, CP Bear 01 /18/00 5.920 50, FNMA 6.625% 01/15/02 6.705 50, EFFECTIVE 01/18/00 REDEMPTIONS CID Household 01/18/00 5.420 50,000 4 30,111.11 5.498 CID Household 01/18/00 5.420 50,000 4 30,111.11 5.498 CID Household 01/18/00 5.420 50,000 4 30,111.11 5.498 CID ConAgra 01/18/00 5.620 20,000 5 15,611.11 5.702 CID Amer Exp 01/18/00 5.530 50,000 8 61,444.44 5.613 CID Salomon 01/18/00 6.550 44,700 27 219,588.75 6.673 PURCHASES CD Nova Scot 6.000% 06/30/00 6.000 20,000 CD Banc One 6.120% 07/27/00 6.120 50,000 CD Banc One 6.120% 07/27/00 6.120 50,000 CID GMAC 01/19/00 5.820 50,000 CID GMAC 01/19/00 5.820 50,000 CID B/A 06/08/00 5.910 30,000 Disc Notes FHLB 01/12/01 5.950 50,000 01/19/00 REDEMPTIONS CP GMAC 01/19/00 5.820 50,000 1 8,083.33 5.901 CID GMAC 01/19/00 5.820 50,000 1 8,083.33 5.901 PURCHASES CID Household 02/01/00 5.520 50,000 CP Household 02/02/00 5.520 50,000 CID Household 02/02/00 5.520 50,000 CP FMCC 02/02/00 5.500 20,000 Disc Notes FHLB 01/12/01 5.940 33,000 Disc Notes FHLB 01/12/01 5.940 50,000 01/20/00 REDEMPTIONS CID Morg Stan 01/20/00 6.350 50,000 36 317,500.00 6.479 CID Morg Stan 01/20/00 6.350 50,000 36 317,500.00 6.479 Disc Notes FHLMC 01/20/00 5.200 42,918 206 1,277,048.93 5.433 Disc Notes FHLMC 01/20/00 5.200 50,000 206 1,487,777.78 5.433 PURCHASES CD US Bank 6.100% 07/27/00 6.100 50,000 CD US Bank 6.100% 07/27/00 6.100 50,000 CID Amer Exp 02/01/00 5.470 10,000 CID Amer Exp 02/01/00 5.470 50,000 CID Amer Exp 02/02/00 5.470 50,000 CID Amer Exp 02/02/00 5.470 50,000 Disc Notes FNMA 01/12/01 5.940 50,000 Disc Notes FNMA 01/12/01 5.940 50,000 MTN FR Chase 6.422% 01 /25/02 6.969 47,500 E PO SED-.,MOINEY,IN `'ESTMENT ACCOUNT / a/ MA i`UIG rrY TRANS PAR MAYS DAIE )OMA, 01/20/00 PURCHASES (continued) FNMA 5.625% 03/15/01 6.480 30,000 01/21/00 RRS Treas Notes 5.500% 02/29/00 5.340 50,000 Treas Notes 5.500% 02/29/00 5.340 50,000 REDEMPTIONS CP Morg Stan 01/21/00 6.350 50, 00 36 317,500.00 6.479 CP FMCC 01/21/00 6.260 5000 38 330,388.89 6.389 CP FMCC 01/21/00 6.260 50,)00 38 330,388.89 6.389 Disc Notes FHLB 01/21/00 4.700 50,000 276 1,801,66.67 4.943 PURCHASES g/ CD Barclays 5.700% 02/29/00 5.700 50,)00 CD Barclays 5.700% 02/29/00 5.700 50,)00 PURCHASES CB B/A 9.500% 04/01 /01 6.830 13, rOO CD Montreal 5.500% 02/02/00 5.500 35,)00 CD Montreal 5.740% 02/29/00 5.740 50,)00 CP Household 02/01/00 5.450 50,)00 CP Household 02/02/00 5.450 50,)00 CP W/F 02/02/00 5.500 50,)00 CP OF 02/02/00 5.500 50,)00 CP FMCC 02/29/00 5.640 50,)00 CP FMCC 02/29/00 5.640 50,)00 CP U/B Calif 06/01/00 5.880 20,)00 CP GMAC 06/01/00 5.850 50,)00 CP GMAC 06/01/00 5.850 50,)00 Disc Notes FFCC 01 /19/01 5.930 50,)00 Treas Bills 01 /04/01 5.762 50,)00 Treas Bills 01 /04/01 5.762 50,)00 01/24/00 REDEMPTIONS CP SRAC 01/24/00 6.450 50,)00 35 313,541.67 6.580 CP Heller 01/24/00 6.750 50,)00 35 328,125.00 6.888 CP Salomon 01/24/00 6.250 25,)00 41 177,951.39 6.382 PURCHASES CD Mellon 6.050% 07/27/00 6.050 35,)00 CD Mellon 6.050% 07/27/00 6.050 50,)00 CP GECC 02/01/00 5.520 50,)00 CP Amer Exp 02/02/00 5.550 50, 00 10 01/24/00 PURCHASES (continued) CP Amer Exp 02/02/00 5.550 Disc Notes FFCC 01 /02/01 5.940 Treas Bills 01 /04/01 5.750 Treas Bills 01 /04/01 5.750 Treas Bills 01 /04/01 5.750 01/25/00 REDEMPTIONS Disc Notes FNMA 01/25/00 4.570 Disc Notes FNMA 01/25/00 4.570 Disc Notes FNMA 01/25/00 4.570 PURCHASES CP GECC 01/26/00 5.400 CP GFCC 01/26/00 5.400 CP GMAC 04/03/00 5.720 CP GMAC 04/03/00 5.720 CP Morg Stan 04/03/00 5.740 CP Morg Stan 04/03/00 5.740 MTN FR JP Morgan 6.120% 01/25/02 6.120 01/26/00 REDEMPTIONS CP GECC 01/26/00 5.400 CP GECC 01/26/00 5.400 PURCHASES BN Banc One 6.130% 07/27/00 6.130 BN Banc One 6.130% 07/27/00 6.130 CD Banc One 6.050% 06/30/00 6.050 CD Banc One 6.050% 06/30/00 6.050 CP GECC 01/27/00 5.430 CP GECC 01/27/00 5.430 CP GECC 01/27/00 5.430 CP GECC 01/27/00 5.430 CP Morg Stan 02/29/00 5.670 CP Morg Stan 02/29/00 5.670 01/27/00 RRS 50,000 25,000 50,000 50,000 50,000 35,000 358 1,590,613.89 4.854 50,000 358 2,272,305.56 4.854 50,000 358 2,272,305.56 4.854 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 1 7,500.00 5.475 50,000 1 7,500.00 5.475 35,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Treas Bills . 02/03/00 5.150 40,000 Treas Bills 02/03/00 5.150 50,000 REDEMPTIONS BN B/A 5.860% 01/27/00 5.860 50,000 129 1,049,916.67 5.941 BN B/A 5.860% 01/27/00 5.860 50,000 129 .1,049,916.67 5.941 11 01/27/00 REDEMPTIONS (continued) CD Dresdner 5.850% 01/27/00 5.845 50,00 121 982,300.91 5.926 CD Dresdner 5.850% 01/27/00 5.845 50,00 121 982,300.91 5.926 CD Dresdner 5.850% 01/27/00 5.845 50,00 126 1,022,892.54 5.926 CD Dresdner 5.850% 01/27/00 5.845 50,00 126 1,022,892.54 5.926 CD BkBoston 5.910% 01/27/00 5.910 50,00 126 1,034,250.00 5.992 CD Dresdner 5.850% 01/27/00 5.845 20,00 127 412,404.35 5.926 CD Dresdner 5.850% 01/27/00 5.845 50,00 127 1,031,010.87 5.926 CD Nova Scot 5.840% 01/27/00 5.840 25,00 129 523,166.67 5.921 CD Nova Scot 5.840% 01/27/00 5.840 50,00 129 1,046,333.33 5.921 CD Bayer Lnds 5.860% 01/27/00 5.850 50,00 129 1,048,161.79 5.931 CD Bayer Lnds 5.860% 01/27/00 5.850 50,00 129 1,048,161.79 5.931 CD U/B Calif 5.910% 01/27/00 5.910 50,00 129 1,058,875.00 5.992 CD U/B Calif 5.910% 01/27/00 5.910 50,00 129 1,058,875.00 5.992 CP GECC 01/27/00 5.430 50,00 1 7,541.67 5.506 CP GECC 01/27/00 5.430 50,00 1 7,541.67 5.506 CP GECC 01/27/00 5.430 50,00 1 7,541.67 5.506 CP GECC 01/27/00 5.430 50,00 1 7,541.67 5.506 CP , FMCC 01/27/00 5.540 50,00 17 130,805.56 5.631 CP Country 01/27/00 6.470 24,55 37 163,250.68 6.603 CP Salomon 01/27/00 6.000 25,00 52 216,666.67 6.136 CP Salomon 01/27/00 6.000 25,00 52 216,666.67 6.136 CP GECC 01/27/00 6.000 20,00 101 336,666.67 6.187 CP ConAgra 01/27/00 6.040 30,00 129 649,300.00 6.259 CP SRAC 01/27/00 5.820 50,00 129 1,042,750.00 6.026 CP Bear 01/27/00 5.840 50,00 133 1,078,777.78 6.051 CP Bear 01/27/00 5.840 50,00 133 1,078,777.78 6.051 Disc Notes FHLB 01/27/00 4.580 19,00 360 870,200.00 4.866 Disc Notes FHLB 01/27/00 4.580 50,00 360 2,290,000.00 4.866 Disc Notes FHLMC 01/27/00 5.145 25,00 217 775,322.92 5.383 Disc Notes FHLMC 01/27/00 5.140 20,00 218 622,511.11 5.378 Disc Notes FHLMC 01/27/00 5.140 50,00 218 1,556,277.78 5.378 Disc Notes FHLMC 01/27/00 5.140 50,00 218 1,556,277.78 5.378 Disc Notes FHLMC 01/27/00 5.140 50,00 218 1,556,277.78 5.378 Disc Notes FHLMC 01/27/00 5.140 50,00 218 1,556,277.78 5.378 FNMA 5.430% 01/27/00 5.469 50,000 734 5,467,109.50 5.469 .PURCHASES S/ CD Fst Union 5.560% 02/03/00 5.550 40,0 CD Fst Union 5.560% 02/03/00 5.550 50.0 01/28/00 REDEMPTIONS CP Amer Exp 01/28/00 5.480 50,0( CP Amer Exp 01/28/00 5.480 50,0( Disc Notes FHLB 01/28/00 4.580 50,0( Disc Notes FHLB 01/28/00 4.580 50,0( MTN Chrysler 6.375% 01/28/00 5.920 39,1 22 167,444.44 5.574 22 167,444.44 5.574 360 2,290,000.00 4.866 360 2,290,000.00 4.866 576 3,665,242.54 5.929 12 01/28/00 PURCHASES FR SBA FHLB FHLB CD Montreal CD Montreal CD U/B Calif CD U/B Calif CP SRAC CP FMCC CP FMCC CP FMCC CP FMCC CP Salomon CP Salomon CP SRAC CP ConAgra 01 /31 /00 RRS Treas Bills PURCHASES g/ CD Svenska PURCHASES CP Household CP Household CP Heller CP Bear CP Bear CP W/F CP W/F FHLB FHLB DCO' �! MATURITY:.TRANS ►AR l7rA Y 'AMOUNT EFFECTr 6.000% 01 /25/25 6.000 18,926 5.875% 08/15/01 6.694 15,475 5.875% 08/15/01 6.694 50,000 5.940% 05/26/00 5.940 50,000 5.940% 05/26/00 5.940 50,000 6.060% 06/30/00 6.060 50,000 6.060% 06/30/00 6.060 50,000 02/28/00 5.780 50,000 02/29/00 5.690 10,000 02/29/00 5.690 50,000 02/29/00 5.690 50,000 02/29/00 5.690 50,000 02/29/00 5.690 50,000 02/29/00 5.690 50,000 02/29/00 5.780 50,000 03/02/00 5.850 39,610 04/27/00 5.530 50,000 5.950% 04/27/00 5.950 50,000 02/01/00 5.830 50,000 02/01 /00 5.830 50,000 02/14/00 5.820 50,000 02/15/00 5.750 25,000 02/15/00 5.750 50,000 02/15/00 5.720 50,000 02/15/00 5.720 50,000 5.875% 08/15/01 6.590 50,000 5.875% 08/15/01 6.590 50,000 13 a/ The abbreviations indicate the type of security i.e., (U.S.) Bills, Bonds, Notes, Debentures, Di and Participation Certificates: Federal Nationa (FNMA), Farmers Home Administration Note; Marketing Association (SLMA), Small Busine Negotiable Certificates of Deposit (CD), Nego, Deposit Floating Rate (CD FR), Export Imporl Bankers Acceptances (BA), Commercial Paper National Mortgage Association (GNMA), Fedi Notes (FHLB), Federal Land Bank Bonds (FL Mortgage Corporation Obligation (FHLMC Pi Federal Farm Credit Bank Bonds (FFCB), Fed Notes (FFC), Corporate Securities (CB), U.S. (TITLE XI'S), International Bank of Redevel( Valley Authority (TVA) Medium Term Notes i b/ c/ d/ e/ f/ g/ h/ i/ RRS RRP Purchase or sale yield based on 360 day obligations and Repurchase Agreements. Repurchase Agreement. Par amount of securites purchased, sold, or Securities were purchased and sold as of the Repurchase Agreement against Reverse Outright purchase against Reverse Repurchase Security "SWAP" transactions. Buy back agreement. Reverse Repurchase Agreement. )urchased or sold; ,count Notes, Mortgage Association (FHA), Student Loan -s Association (SBA), [able Certificates of Notes (EXIM), (CP), Government ral Home Loan Bank 1), Federal Home Loan 7) & (FHLMC GMC), ;ral Farm Credit Discount ship Financing Bonds pment (IBRD), Tennessee Termination of Reverse Repurchase Agreement. ion for discount date. Agreement. 14 TIME DEPOSITS NAME AGOURA HILLS Pacific Crest Bank Pacific Crest Bank Pacific Crest Bank Pacific Crest Bank I�T :w- ,iIA T_1 East West Bank East West Bank East West Bank East West Bank Grand National Bank Grand National Bank Grand National Bank Grand National Bank BEVERLY HILLS City National Bank City National Bank City National Bank City National Bank City National Bank City National Bank CAMERON PARK Roseville First National Bank Western Sierra National Bank Western Sierra National Bank CHICO North State National Bank North State National Bank North State National Bank North State National Bank North State National Bank Tri Counties Bank Tri Counties Bank Tri Counties Bank Tri Counties Bank DEPOSIT DATE YIELD PAR AMOUNTM MATURITY DATE 10/12/99 5.180 5,000,000.00 04/17/00 10/12/99 5.390 5,000,000.00 10/16/00 11 /30/99 5.740 5,000,000.00 12/01 /00 12/28/99 5.980 5,000,000.00 12/27/00 01 /21 /00 5.560 35,000,000.00 05/04/00 01 /14/00 5.430 35,000,000.00 04/13/00 11 /15/99 5.260 38,000,000.00 02/11 /00 12/28/99 5.470 12,000,000.00 04/03/00 01 /14/00 5.430 2,000,000.00 04/14/00 08/13/99 5.140 3,000,000.00 02/07/00 12/07/99 5.270 3,000,000.00 03/06/00 01 /20/00 5.390 3,095,000.00 04/21 /00 07/27/99 5.040 10,000,000.00 07/26/00 05/19/99 4.820 20,000,000.00 02/28/00 09/15/99 5.280 20,000,000.00 09/15/00 05/04/99 4.820 25,000,000.00 05/03/00 10/12/99 5.360 25,000,000.00 10/16/00 03/31 /99 4.740 50,000,000.00 03/31 /00 01 /24/00 5.850 1,000,000.00 07/24/00 11 /08/99 5.420 1,000,000.00 05/08/00 11 /05/99 5.210 3,000,000.00 02/03/00 09/07/99 5.240 500,000.00 09/01 /00 04/06/99 4.730 1,000,000.00 04/06/00 08/24/99 5.210 1,000,000.00 08/24/00 08/30/99 5.160 1,000,000.00 09/01 /00 10/04/99 5.020 1,000,000.00 04/07/00 01 /11 /00 5.390 10,000,000.00 04/10/00 12/09/99 5.260 10,000,000.00 03/09/00 12/16/99 5.360 10,000,000.00 03/15/00 12/21 /99 5.520 10,000,000.00 03/20/00 15 NAME CITY OF INDUSTRY EverTrust Bank EverTrust Bank EverTrust Bank EverTrust Bank EverTrust Bank EL CENTRO Valley Independent Bank Valley Independent Bank FRESNO United Security Bank United Security Bank FULLERTON Fullerton Community Bank INGLEWOOD Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank Imperial Bank LODI TIME DEPOSITS DEPOSIT DATE YIELD 12/ 13/99 12/21 /99 12/ 16/99 01 /20/00 01 /20/00 08/11 /99 08/11 /99 08/20/99 01 /31 /00 01 /19/00 07/29/99 09/23/99 10/14/99 10/28/99 12/22/99 08/23/99 09/09/99 01 /27/00 10/21 /99 11 /18/99 08/12/99 07/15/99 5.210 1,000,000.00 5.490 2,000,000.00 5.330 3,000,000.00 5.680 3,000,000.00 6.050 3,000,000.00 5.150 3,750,000.00 5.250 3,750,000.00 5.090 10,000,000.00 5.830 15,000,000.00 6.160 8,000,000.00 4.840 5.050 5.190 5.450 2.920 5.040 5.220 5.930 5.290 5.500 5.100 4.800 Bank of Lodi 12/15/99 5.400 Bank of Lodi 10/08/99 5.110 Bank of Lodi 12/15/99 5.400 18,000,000.00 18,000,000.00 20,000,000.00 20,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 26,000,000.00 50,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 MATURITY DATE 03/13/00 03/24/00 03/20/00 07/18/00 10/ 16/00 02/07/00 08/11 /00 02/16/00 07/31 /00 01/19/01 03/30/00 02/24/00 04/13/00 06/22/00 07/06/00 03/02/00 03/09/00 08/17/00 05/25/00 05/18/00 04/27/00 02/03/00 03/23/00 04/10/00 03/23/00 16 NAME LOS ANGELES Broadway Federal Bank Broadway Federal Bank Broadway Federal Bank Cathay Bank Cathay Bank Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank General Bank General Bank General Bank General Bank General Bank General Bank Manufacturers Bank Manufacturers Bank Manufacturers Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank Preferred Bank State Bank of India State Bank of India Wilshire State Bank Wilshire State Bank MONTEREY PARK Trust Bank FSB Trust Bank FSB TIME DEPOSITS DEPOSIT DATE YIELD PAR AMOUNTM MATURITY DATE 12/28/99 5.790 1,250,000.00 07/07/00 07/01 /99 5.200 1,250,000.00 06/30/00 09/29/99 5.230 2,500,000.00 10/02/00 12/20/99 5.850 9,000,000.00 06/19/00 12/29/99 5.500 10,000,000.00 03/28/00 12/07/99 5.700 5,000,000.00 12/08/00 06/22/99 5.030 5,000,000.00 06/22/00 10/25/99 5.490 5,000,000.00 10/27/00 12/13/99 5.650 10,000,000.00 12/15/00 08/11 /99 5.230 15,000,000.00 08/11 /00 01 /10/00 6.040 20,000,000.00 01 /12/01 01 /21 /00 5.560 7,000,000.00 04/25/00 11 /12/99 5.250 10,000,000.00 02/18/00 07/27/99 4.730 15,000,000.00 02/02/00 08/03/99 4.900 15,000,000.00 02/14/00 08/13/99 5.110 25,000,000.00 03/10/00 01 /24/00 5.500 28,000,000.00 04/28/00 12/06/99 5.300 10,000,000.00 03/06/00 12/23/99 5.650 10,000,000.00 03/27/00 11 /09/99 5.170 10,000,000.00 02/07/00 11 /30/99 5.340 2,000,000.00 02/28/00 01/18/00 5.430 3,000,000.00 04/18/00 01 /04/00 5.480 3,000,000.00 04/03/00 11 /16/99 5.270 4,000,000.00 02/14/00 12/03/99 5.250 5,000,000.00 03/02/00 12/15/99 5.390 9,000,000.00 03/14/00 12/20/99 5.460 9,000,000.00 03/20/00 11 /19/99 5.6.00 2,000,000.00 11 /30/00 01 /20/00 6.110 2,000,000.00 01 /19/01 08/31 /99 5.290 4,000,000.00 08/31 /00 01 /12/00 6.090 4,000,000.00 01 /12/01 12/27/99 12/27/99 5.510 5.790 4,000,000.00 03/27/00 2,000,000.00 06/26/00 17 TIME DEPOSITS NAME OAKDALE Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank ONTARIO Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank PALO ALTO Bay Area Bank Cupertino National Bank Cupertino National Bank Cupertino National Bank Mid -Peninsula Bank Mid -Peninsula Bank Mid -Peninsula Bank PALOS VERDES ESTATES Malaga Bank PICO RIVERA Pacific West National Bank POMONA PFF Bank and Trust PFF Bank and Trust DEPOSIT DATE YIELD 05/06/99 08/10/99 09/27/99 11 /03/99 11 /03/99 11 /03/99 01 /31 /00 03/30/99 09/20/99 03/09/99 03/23/99 04/07/99 06/16/99 08/23/99 07/07/99 08/10/99 10/08/99 08/06/99 08/30/99 10/19/99 03/ 10/99 08/30/99 08/06/99 12/28/99 11 /23/99 11 /30/99 09/08/99 4.830 5.220 5.190 5.180 5.360 5.390 5.680 4.750 5.070 4.850 4.780 4.720 5.150 4.970 5.100 5.220 5.140 4.980 5.120 5.090 5.180 5.120 4.980 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 1,000,000.00 1,000,000.00 1,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 20,000,000.00 5,000,000.00 '10,000,000.00 5,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 15,000,000.00 5.490 6,000,000.00 5.650 1,000,000.00 5.900 8,000,000.00 5.600 10,000,000.00 MATURITY DATE 05/22/00 08/09/00 09/29/00 02/04/00 05/01 /00 07/31 /00 05/01 /00 03/31 /00 03/24/00 03/08/00 03/22/00 04/06/00 06/15/00 05/25/00 07/06/00 08/09/00 04/17/00 02/04/00 02/25/00 03/22/00 03/08/00 02/25/00 02/04/00 03/28/00 11 /30/00 12/01 /00 03/10/00 18 TIME DEPOSITS NAME PETALUMA Bank of Petaluma Bank of Petaluma REDDING North Valley Bank RICHMOND Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank Mechanics Bank SACRAMENTO American River Bank American River Bank American River Bank American River Bank Bank of Sacramento River City Bank River City Bank River City Bank Sanwa Bank of California Sanwa Bank of California Sanwa Bank of California Sanwa Bank of California Sanwa Bank of California Union Bank of California Union Bank of California Union Bank of California Union Bank of California Union Bank of California DEPOSIT DATE YIELD PAR AMOUNT($) MATURITY DATE 08/10/99 5.140 1,000,000.00 02/07/00 01 /24/00 5.840 2,500,000.00 07/24/00 03/23/99 4.780 3,000,000.00 03/22/00 03/08/99 4.840 10,000,000.00 03/07/00 04/05/99 4.740 10,000,000.00 04/04/00 05/06/99 4.810 10,000,000.00 05/05/00 06/11 /99 5.150 10,000,000.00 06/12/00 08/12/99 5.250 10,000,000.00 08/11 /00 10/07/99 5.330 10,000,000.00 10/13/00 09/29/99 4.990 1,000,000.00 04/03/00 12/28/99 5.490 3,000,000.00 03/27/00 12/28/99 5.770 1,000,000.00 06/26/00 12/28/99 5.960 1,000,000.00 12/27/00 12/03/99 5.320 500,000.00 03/03/00 01 /10/00 5.440 5,000,000.00 04/10/00 01 /31 /00 6.140 5,000,000.00 10/27/00 08/18/99 5.210 5,000,000.00 08/18/00 07/27/99 5.010 5,000,000.00 07/26/00 08/03/99 4.900 7,000,000.00 02/07/00 07/15/99 5.000 10,000,000.00 07/14/00 08/23/99 5.180 10,000,000.00 08/22/00 08/16/99 5.190 50,000,000.00 08/15/00 01 /25/00 5.450 50,000,000.00 04/25/00 11 /16/99 5.270 50,000,000.00 02/15/00 08/26/99 5.160 100,000,000.00 02/23/00 09/28/99 5.040 100,000,000.00 03/28/00 11 /02/99 5.130 100,000,000.00 02/01 /00 SAL_ Community Bk Central California 01/26/00 Community Bk Central California 01/27/00 SAN DIEGO First United Bank 11/30/99 San Diego First Bank 08/04/99 San Diego First Bank 06/22/99 5.480 8,000,000.00 04/20/00 5.610 12,000,000.00 04/27/00 5.700 1,500,000.00 12/01 /00 5.150 1,000,000.00 08/07/00 5.030 1,500,000.00 06/21 /00 19 NAME SAN FRANCISCO Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of Canton California Bank of the West Bank of the West Bank of the West Bank of the West Bank of the West Bank of the West Bank of the West Bank of the West Bank of the West California Federal Bank California Federal Bank Millennium Bank Oceanic Bank Oceanic Bank Trans Pacific National Bank United Commercial Bank United Commercial Bank United Commercial Bank United Commercial Bank United Commercial Bank United Commercial Bank SANJOSE San Jose National Bank SAN LEANDRO Bay Bank of Commerce TIME DEPOSITS DEPOSIT DATE 05/06/99 05/13/99 06/01 /99 06/02/99 07/21 /99 09/01 /99 09/13/99 11 /10/99 11 / 10/99 06/08/99 01 /12/00 01 /31 /00 08/27/99 11 /02/99 05/19/99 01 /05/00 04/29/99 05/26/99 01 /05/00 01/18/00 10/27/99 03/05/99 03/12/99 09/ 13/99 10/07/99 08/13/99 09/03/99 09/20/99 10/04/99 12/17/99 YIELD 4.810 4.780 5.000 5.000 4.950 5.280 5.290 5.460 5.430 4.820 5.380 5.620 4.960 5.340 4.890 5.490 4.760 4.860 6.080 5.440 5.390 4.920 4.780 5.260 5.360 5.150 5.310 5.100 5.030 5.380 07/12/99 5.010 01 /13/00 5.47 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 10,000,000.00 15,000,000.00 25,000,000.00 50,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 30,000,000.00 34,000,000.00 51,500,000.00 37,000,000.00 8,000,000.00 )0,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 800,000.00 10,000,000.00 '.0,000,000.00 !0,000,000.00 '.0,000,000.00 !0,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 MATURITY DATE 05/05/00 05/12/00 05/31 /00 05/31 /00 07/21 /00 09/01 /00 09/13/00 11 /10/00 09/01 /00 02/16/00 04/14/00 05/01 /00 05/25/00 05/05/00 05/25/00 04/04/00 04/29/00 05/25/00 01 /05/01 04/17/00 05/01 /00 03/07/00 03/15/00 03/17/00 10/13/00 02/11 /00 09/01 /00 04/27/00 04/05/00 03/20/00 07/11 /00 04/12/00 20 TIME DEPOSITS NAME DEPOSIT DATE YIELD PAR AMOUNT($) MATURITY DATE SAN LUIS OBISPO First Bank of San Luis Obispo 01 /14/00 5.440 1,000,000.00 04/13/00 First Bank of San Luis Obispo 01/25/00 5.500 1,000,000.00 04/24/00 First Bank of San Luis Obispo 11 /08/99 5.160 2,000,000.00 02/10/00 First Bank of San Luis Obispo 11/22/99 5.270 2,500,000.00 02/22/00 First Bank of San Luis Obispo 11/03/99 5.170 3,600,000.00 02/04/00 San Luis Trust Bank 01 /13/00 5.460 350,000.00 04/12/00 San Luis Trust Bank 01 /31 /00 5.930 1,000,000.00 08/04/00 Mission Community Bank 01/10/00 5.420 500,000.00 04/10/00 Mission Community Bank 01 /10/00 5.700 1,000,000.00 07/10/00 Mission Community Bank 01 /10/00 6.060 500,000.00 01 /12/01 SAN RAFAEL Westamerica Bank 01/12/00 5.440 25,000,000.00 04/14/00 Westamerica Bank 01/31/00 5.910 25,000,000.00 07/31/00 Westamerica Bank 01/27/00 5.800 25,000,000.00 07/25/00 Westamerica Bank 01 /31 /00 5.910 25,000,000.00 08/07/00 Westamerica Bank 11/15/99 5.260 50,000,000.00 02/14/00 Westamerica Bank 01/19/00 5.390 25,000,000.00 04/18/00 Westamerica Bank 12/17/99 5.370 25,000,000.00 03/20/00 SANTA BARBARA FNB of Central California 08/11 /99 5.140 5,000,000.00 02/07/00 FNB of Central California 10/01 /99 5.000 5,000,000.00 03/31 /00 FNB of Central California 01 /10/00 5.690 10,000,000.00 07/10/00 Santa Barbara Bank & Trust 01/07/00 5.740 5,000,000.00 07/07/00 Santa Barbara Bank & Trust 01/07/00 5.740 5,000,000.00 07/07/00 Santa Barbara Bank & Trust 01 /14/00 5.690 5,000,000.00 07/14/00 Santa Barbara Bank & Trust 01/14/00 5.690 5,000,000.00 07/14/00 Santa Barbara Bank & Trust 01 /19/00 5.710 10,000,000.00 07/21 /00 Santa Barbara Bank & Trust 01 /21 /00 5.900 5,000,000.00 08/11 /00 Santa Barbara Bank & Trust 08/13/99 5.150 5,000,000.00 02/11 /00 Santa Barbara Bank & Trust 08/31 /99 5.200 5,000,000.00 03/03/00 Santa Barbara Bank & Trust 09/13/99 5.180 5,000,000.00 03/17/00 Santa Barbara Bank & Trust 10/04/99 5.010 5;000,000.00 04/07/00 Santa Barbara Bank & Trust 10/08/99 5.110 5,000,000.00 04/17/00 SANTA CLARITA Valencia Bank & Trust 9/23/99 5.28 1,000,000.00 9/22/00 SANTA CRUZ Coast Commercial Bank 12/14/99 5.360 20,000,000.00 03/13/00 Coast Commercial Bank 01 /18/00 5.430 5,000,000.00 04/21 /00 21 NAME SARATOGA Saratoga National Bank Saratoga National Bank STOCKTON Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank TORRANCE China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) South Bay Bank South Bay Bank South Bay Bank TUSTIN First Fidelity Thrift & Loan First Fidelity Thrift & Loan First Fidelity Thrift & Loan First Fidelity Investment & Loan Sunwest Bank Sunwest Bank Sunwest Bank Sunwest Bank Sunwest Bank TIME DEPOSITS DEPOSIT DATE YIELD 06/22/99 5.100 10/01 /99 5.150 08/16/99 01 /14/00 12/16/99 09/17/99 10/ 13/99 11 /08/99 12/20/99 01 /24/00 12/17/99 11 /15/99 12/06/99 12/ 10/99 01 /05/00 01 /24/00 01 /31 /00 12/13/99 11 /02/99 01 /28/00 01 /18/00 01 /19/00 11 /10/99 09/10/99 01 /13/00 01/11/00 01 /21 /00 01 /21 /00 5.140 5.480 5.380 5.260 5.370 5.420 5.940 6.120 5.380 5.270 5.280 5.240 5.500 5.490 5.880 5.340 5.400 5.620 5.440 5.700 5.210 5.170 5.720 5.650 5.820 5.810 TOTAL TIME DEPOSITS AS OF JANUARY 31, 2000 2 1,750,000.00 5,000,000.00 0,000,000.00 0,000,000.00 0,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 0,000,000.00 0,000,000.00 0,000,000.00 5,000,000.00 1,000,000.00 2,000,000.00 2,000,000.00 4,000,000.00 5,000,000.00 5,000,000.00 6,000,000.00 1,000,000.00 3,300,000.00 3,500,000.00 2,500,000.00 2,500,000.00 8,395,000.00 MATURITY DATE 06/30/00 06/30/00 02/15/00 04/13/00 03/15/00 09/15/00 10/27/00 11 /13/00 12/28/00 01 /23/01 03/17/00 02/14/00 03/06/00 03/09/00 04/04/00 04/24/00 07/31 /00 03/13/00 05/01 /00 04/28/00 04/17/00 07/17/00 02/11 /00 03/08/00 07/27/00 07/10/00 07/31 /00 07/19/00 22 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1607 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on January 19, 2000, 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- actions, 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 $ 191,483,000 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 To Transactions 01 /17/2000 01 /21 /2000 01 /2412000 01 /28/2000 01 /31 /2000 02/04/2000 02/07/2000 02/11/2000 02/14/2000 02/18/2000 1,138,000,000 (99,400,000) 1,302,400,000 Estimated Total $ 36,887,300,000 $ 36,787,900,000 $ 38,090,300,000 (685,300,000) $ 34,527,105,000 $ 2,877,895,000 $ 37,405,000,000 577,900,000 $ 35,105,005,000 $ 2,877,895,000 $ 37,982,900,000 Time Deposits in Various Financial Institutions In Securities (sections 16503a (section 16430)' and 16602)' $ 34,009,405,000 $ 2,877,895,000 $ 33,910,005,000 $ 2,877,895,000 $ 35,212,405,000 $ 2,877,895,000 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 $ 191,483,000. - - Dated: January 19. 2000 Government Code POOLED MOt E1LHGV STMENT BOARD: - Ch ,irperson l `Wmber Member ' 23 BANK DEMAND DEPOSITS JANUARY 2000 ($ in thousands) DAY OF BALANCES WARR.ANTS MONTH PER BANKS OUTSTA SIDING 1 $ 1,513,935 $ 2,509,559 2 1,513,935 21 09,559 3 761,609 2,C 38,126 4 1,353,633 1, 81,319 5 716,802 11159,452 6 523,828 1, 41,774 7 378,668 1, 89,646 8 378,668 1, 89,646 9 378,668 1, 89,646 10 246,45& 11171,345 11 335,955 1,104,905 12 252,289 1,426,650 13 254,317 1,715,711 14 260,338 1,729,735 15 260,338 1,7299735 16 260,338 1,738,466 17 ' 260,338 11 38,466 18. ' 220,677 1,229,165 19 288,454 1,241,007 20 664,850 1,214,652 21 424,868 1,419,677 22 424,868 1,419,677 23 424,868 1,419,677 24 374,646 1,208,998 25 434,090 1,446,431 26 108,811 1,310,341 27 182,486 1, 7,522 28 227,165 1,3 5,823 29 227,165 1,3 5,823 30 227,165 1,3 5,823 31 927,617 1,1 9,490 AVERAGE DOLLAR DAYS $ 477,672 a/ a/ The prescribed bank balance for January was $455,207. $187,587 in compensating balances for services, balanc funds of $267,620 and a deduction of $8,537 for Decemtr credit. 'his consisted of s for uncollected r delayed deposit 23