2000 07 12 IABP.O. Box 1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
July 12, 2000 - 5 : 30 P.M.
1 CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
(760) 7 7 7 - 7 0 0 0
(TDD) (760) 777-1227
II APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Chairperson
B. Appointment of Investment Advisory Board Vice -Chairperson
III PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.)
IV CONFIRMATION OF AGENDA
V CONSENT CALENDAR
Approval of Minutes of Meeting on June 7, 2000 for the Investment Advisory
Board.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for May, 2000
B. FY 2000/2001 Meeting Schedule
C. 2000/2001 Workplan
VII CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - June 2000
B. Pooled Money Investment Board Reports - April, 2000
C. Distribution of Investment Policies for Fiscal Year 2000/2001
VIII BOARD MEMBER ITEMS
IX ADJOURNMENT
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: July 12, 2000
ITEM TITLE:
Transmittal of Treasury Report
for May 31, 2000
BACKGROUND:
Attached please find the Treasury Report for May 31, 2000.
RECOMMENDATION:
Review, Receive and File the Treasury Report for May 31, 2000.
inance Director
Ta Iry
4hf 4 QuArA
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for May 31, 2000
DATE: June 29, 2000
Attached is the Treasurer's Report for the month ending May 31, 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)
$411,907
306,374
718,281
$306,374
LAIF
$10,572,960
500,000
11,072,960
500,000
US Treasuries (2)
$21,485,821
10,498,031
6,951,000
(93,461)
24,939,391
3,453,570
US Gov't Agencies (2)
$19,846,079
57,646
19,903,725
57,646
Commercial Paper (2)
$0
3,978,974
3,978,974
3,978,974
Mutual Funds
$4,349,234
267,598
4,081,636
(267,598)
Total
$56 666 001
$14 977 005
$7 489 157
$270 559
$64 694 967
$8 028 966
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.
in M. Falconer I
ance Director/Treasurer
2-7 /,,,,
Dat
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
month on US Treasury, Commercial Paper and Agency investments.
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CITY OF LA QUINTA
CITY
CITY
RDA RDA FA
BALANCE SHEET 05/31/00
FIXED
LONG TERM
FIXED LONG TERM FINANCING LONG TERM
GRAND
ASSETS:
CITY ASSETS
DEBT
RDA
ASSETS DEBT AUTHORITY DEBT
TOTAL
POOLED CASH
LQRP INVESTMENT IN POOLED CASH
(3,551,452.07)
14,267,395.21
(786.84)
10,715,156.30
INVESTMENT T-BILUNOTES & OTHER
39,480,000.00
805,000.00
,000.00
805805,000.00
AUTO MALL CASH
2O8,238.93
39,
LQRP CASH
61,845.47
2O8,238.93
BOND REDEMPTION CASH
180,089.51
61,845.47
BOND RESERVE CASH
28.73
180,118.24
BOND PROJECT CASH
BOND ESCROW CASH
12,801,244.40
594,246.28
13,395,490.68
PETTY CASH
1,000.00
CASH & INVESTMENT TOTAL
36,137,788.86
28,115,574.59
1,000.00
593,488.17
64,846,849.62
INVESTMENT IN LAND HELD FOR RESALE
ACCOUNTS RECEIVABLE
PREMIUM/DISCOUNT ON INVESTMENT
41,173.38
(91,348.52)
60,983.90
8,260,000.00
8,362,157.28
LQRP-ACCOUNTS RECEIVABLE
(51,021.00)
(9,513.07)
(151,882.59)
INTEREST RECEIVABLE
14,940.53
57,534.36
57,534.36
LOAN/NOTES RECEIVABLE
17,437.19
2,668,850.80
14,940.53
DUE FROM OTHER AGENCIES
127,984.00
. 8 , 8862799 2,
DUE FROM OTHER GOVERNMENTS
186,8.99
DUE FROM OTHER FUNDS
785,501.19
741,656.90
DUE FROM RDA
7,113,127.20
1,527,158.09
INTEREST ADVANCE -DUE FROM RDA
1,873,685.34
7,113,127.20
ADVANCES TO OTHER FUNDS
113,974.91
8
1,873,885.34
NSF CHECKS RECEIVABLE
2,006.11
3,685.34
91
3,974.11
ACCRUED REVENUE
833.40
008.11
TRAVEL ADVANCES
1,453.00
EMPLOYEE ADVANCES
1,833.40
PREPAID EXPENSES
RECEIVABLE TOTAL
9,999,934.33
3,478,838.36
8,250,486.93
21,729,259.62
WORKER COMPENSATION DEPOSIT
RENT DEPOSITS
UTILITY DEPOSITS
75.00
MISC. DEPOSITS
2,100.00
75.00
DEPOSITS TOTAL
2,175.00
2,100.00
2,175.00
GENERAL FIXED ASSETS
1,356,535.88 15,285,816.00
10,236,506.05
26,878,857.93
ACCUMULATED DEPRECIATION
(685,581.27)
AMOUNT AVAILABLE TO RETIRE L!f DEBT
3,395,117.03
(685,581.27)
AMOUNT TO BE PROVIDED FOR UT DEBT
1,677,482.02
95,318,423.06 8,260,000.00
3,395,117.03
105,255,905.08
TOTAL OTHER ASSETS
670,954.61 15,285,816.00
1,677,482.02
10,236,506.05 98,713,540.09 8,260,000.00
134,844,298.77
TOTAL ASSETS 46 810 850.80 15 285 816.00
1,677,482.02 31 594 412.95 10 236 506.05 98 713 540.09 8,843,975.10 8 260 000.00
221 422 583.01
LIABILITY
ACCOUNTS PAYABLE
11,999.44
DUE TO OTHER AGENCIES
1,381,820.33
. 1,88944
DUE TO OTHER FUNDS
575.00
1,517,278.09
,999.44
1,31
9,305.00 1,527,158.09 8182033
INTEREST ADVANCE -DUE TO CITY
ACCRUED EXPENSES
PAYROLL LIABILITIES
61,735.87
STRONG MOTION INSTRUMENTS
6,252.52
61, .87
FRINGE TOED LIZARD FEES
28,890.00
6,735735
252.87
52
SUSPENSE
3,920.00
2 8,,0.0089.
DUE TO THE CITY OF LA QUINTA
PAYABLES TOTAL
1,483,193.72
11,999.44 1,517,278.09
9,305.00 3,021,776.25
ENGINEERING TRUST DEPOSITS
SO. COAST AIR QUALITY DEPOSITS
ARTS IN PUBLIC PLACES DEPOSITS
479,057.05
LQRP DEPOSITS
15,164.00
479,057.05
79,057.05
DEVELOPER DEPOSITS
1,062,867.47
25,000.00
1,015,164.00
47
087,15L59
MISC. DEPOSITS
408,151.59
AGENCY FUND DEPOSITS
1,531,744.64
TOTAL DEPOSITS
3,481,820.75
40,164.00
1,40 ,151.59
64
3,521,984.75
DEFERRED REVENUE
8,270.67
8,260,000 00 8,268,270.67
OTHER LIABILITIES TOTAL
8,270.87
8,260,000.00 8,268,270.67
COMPENSATED ABSENCES PAYABLE
337,880.86
DUE TO THE CITY OF LA QUINTA
1,327,601.72
8,764,154.34
337,880.86
10,091,756.06
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
98,713,540.09
8,260,000.00 108,639,022.67
TOTAL LIABILITY
4,973,285.14
1,677,482.02 1,557,442.09
98,713,540.09
8,269,305.00 8,260,000.00 123,451,054.34
EQUITY -FUND BALANCE
41,837,585.66 15,285,816.00
30,036,970.86 10,236,506.05
574,670.10 97,971,528.67
TOTAL LIABILITY & EQUITY
46 810 850.80 15 285 816.00
1,677,482.02 31 594 412.95 10 236 506.05
98 713 540.09
8,843,975.10 8 260 000.00 221 422 583.01
CASH & INVESTMENT TOTAL
64,846,849.62
PREMIUM/DISCOUNT ON INVESTMENT
(151,382,59)
TOTAL
64,694,967.03
INVESTMENT ADVISORY BOARD MEETING BUSINESS SESSION: B
Meeting Date: July 12, 2000
ITEM TITLE
Meeting Schedule for Fiscal Year
2000/2001
BACKGROUND:
Attached find a list of meeting dates for Fiscal Year 2000/2001.
RECOMMENDATION:
Approve the meeting schedule of the Investment Advisory Board for Fiscal Year
2000/2001.
Jo n M. Falconer, Finance Director
TO:
FROM:
DATE:
RE:
T a 0
4ht 4 4 Qum&
MEMORANDUM
Investment Advisory Board Members
John M. Falconer, Finance Director
July 12, 2000
Schedule of Investment Advisory Board Meeting Schedule
The City Ordinance specifies that the Investment Advisory Board usually will meet
monthly unless the Board with Council concurrence, believes less frequent
meetings are considered necessary. In the past, the Board has met monthly
except for the Month of August. Listed below are meeting dates for the Boards
review.
Monthly
July 12, 2000
August 9, 2000
September 13, 2000
October 11, 2000
November 8, 2000
December 13, 2000
January 10, 2001
February 14, 2001
March 14, 2001
April 11, 2001
May 9, 2001
June 13, 2001
Quarterly -
September 13, 2000
December 13, 2000
March 14, 2001
June 13, 2001
Please consider the schedules for Fiscal Year 2000/2001 and give Staff direction.
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: July 12, 2000
ITEM TITLE:
Fiscal Year 2000/01 Workplan
Cl"O RIIM
At the June 7, 2000 Investment Advisory Board meeting, the Board outlined the
Fiscal Year 2000/01 Workplan as follows:
1. Review of the Investment Policy investments in GSE's
2. Internal Controls
Attached for the Boards review are the Internal Controls currently in effect in the
Finance Department and Board Member Moulin's concerns regarding investments
in GSE's.
RECOMMENDATION:
Review and approval of workplan items
1. Investment Policy Investments in GSE's;
2. Internal Controls.
City of La Quinta
Daily Investment Activity
Treasurers Office Financial
Accounting Services Account Account
Activity Treasurer Manager Assistant Technician Secretary Clerk
1 The Treasurer prints out the bank activity from the bank on-line system ( PC Manager)
each morning. X
2 The Treasurer performs a general review of daily printout of bank activity from the bank
on-line system and forwards to the Account Technician. X
The Account Technician reviews the report to ensure prior days activities were posted by
3 the bank as follows: X
Deposits
Checks that have cleared
Interbank account transfers
Outgoing wires
Trustee book transfers
Custodian withdrawals
4 The Account Technician prepares a daily cash report for the following accounts: X
General Bank Account
General Money Market Bank Sweep Account
Housing Bank Account
Automall Account
Automall Money Market Bank Sweep Account
Local Area Investment Fund _ City
Local Area Investment Fund _ RDA
Investments
The Department Secretary prepares the daily deposit after reconciling prior days cash
5 receipts. Two deposit slips are prepared daily - one for cash and one for checks. The two
deposits are placed into sealed bags for daily pickup by Brinks. X
The Department Secretary gives the Account Technician an adding machine tape with the
6 date and amount of each deposit for entry into the daily deposit report. The Department
Secretary gives the deposit bags to the Account Clerk.
X X
7 The Account Clerk makes an entry into the Brinks Customer receipt book. The cash
receipts are deposited into the Checking Account. X
$ In addition to the normal daily cash receipts the Account Technician records the following
sources of cash into the daily cash report from time to time from the PC Manager report: X
Housing Program lock box collections
Investment Earnings
State of California wires
Incoming wires
Parking Violations deposits
Voided checks
Misc Service fee credits
9 The Account Technician enters the disbursements into the daily cash report with the
estimated date of release. Disbursements consist of the following: X
Regular accounts payable checks
Emergency checks
Payroll Check ACH's
Payroll tax wires
Outgoing wires
Misc Service fee debits
The Account Technician adds back to available cash the regular accounts payable checks
and outgoing wires. Regular accounts payable checks and outgoing wires will be released
10 and cash withdrawn when due. Regular accounts payable checks, emergency checks,
outgoing wires, payroll checks and direct deposits are reported to the Council on the
Demand Register. X
11 The Account Technician prints out three copies of the daily cash report and distributes the
reports as follows:
Account Technician X
Accounting Manager - Approves and forwards to Treasurer X
Treasurer - Approves, reviews and files X
12 The Account Technician forwards the daily PC Manager report to the Financial Services
Assistant performing the monthly bank reconciliation. X X
13 The Treasurer receives the Daily Cash Report by 9:00 A.M. which has been initialed by the
Account Technician and the Accounting Manager X X X
14 The Treasurer reviews the Daily Cash Report. The basic investment strategy is as follows: X
City of La Quinta
Daily Investment Activity
Treasurers Office
Financial
Accounting Services Account Account
Activity
The checking account is reviewed to ensure if adequate funds are available for the payment
Treasurer Manager Assistant Technician Secretary Clerk
of bills. The Treasurer should review for negative amounts in the checking account to
15 determine if transfers should be made to cover checks that have been released. When
considering transfers, the Treasurer should compare the checking account cash available
to the PC Manager cash available to determine cash float. i.e. outstanding checks.
X
If funds are not available in the checking account, the Treasurer will contact the Local
Agency Investment Fund and request a withdrawal. In order to receive same day credit
16 LAIF.must receive the request by 10:00 AM. The Treasurer contacts LAIF in Sacramento
and provides their representative with the amount of the request, Bank account number,
and Personal Identification Number. LAIF will only transfer funds to bank accounts on file.
Future dated LAIF withdrawal requests may be made 10 days in advance.
X
The Treasurer identifies whether the LAIF funds are deposited into the Checking Account
17 and whether the withdrawal will be from the City or Redevelopment LAIF account. LAIF
provides the Treasurer a trade confirmation number. In the absence of the Treasurer, the
City Manager may make LAIF withdrawals and deposits.
X
The Treasurer notifies the Account Technician of the withdrawal. A copy of the daily cash
18 report is given to the Account Technician that states which LAIF accounts were decreased
and the checking account increased. This information is then updated on the next day daily
cash report by the Account Technician.
X X
The Treasurer would transfer LAIF funds into the checking account to pay bills, investments
or book transfers. Investments would be made by our Custodian as authorized by the
19 Treasurer through the Trade Settlement Instruction/Authorization Form, wires would be
made through teletransfer procedures, and book entries would be approved by the City
Manager and City Treasurer and made by authorized bank personnel. Wires can also be
performed through PC Manager software.
X
The preferred method for wire transfers in through PC Manager. The process is divided
20 into steps: 1) prepared 2) verified 3) send. The Treasurer and City Manager can prepare
and send wires while the Accounting Manager can verify.
The Treasurer will determine if there is excess funds in the money market sweep account.
The Treasurer will first determine if funds are needed in the checking account. If funds are
21 needed a transfer to the checking account as previously described will be made
automatically from the sweep account. If excess funds are still available a transfer funds to
Local Agency Investment Account (LAIF) will be made.
X
The Treasurer will contact the State of California LAIF office by 10:00 A.M. to advise it of a
22 LAIF transfer request. The Treasurer will provide LAIF with the amount ,and the LAIF
account number to credit. LAIF will provide the Treasurer with a confirmation number.
LAIF transfers may be made 10 calendar days in advance.
X
The Treasurer may call the Wells Fargo toll free phone number by 11:00 A.M. and provide
23 the date, municipality name, person authorizing transfer, bank account number to be
debited, amount, LAIF account number, and LAIF confirmation number. The Treasurer
may also enter the data through PC Manager.
X
The preferred method for wire transfers is through PC Manager. The process is divided
24 into steps: 1) prepared 2) verified 3) send. The Treasurer and City Manager can prepare
and send wires while the Accounting Manager can verify.
25 The Treasurer then writes the information on the daily cash report and forwards a copy to
the Account Technician who enters this transaction in the next days daily cash report.
X X
The Treasurer logs the deposits and withdrawals in the LAIF spreadsheet. A copy of the
spreadsheet, which records all LAIF activity, is given to the Financial Services Assistant
26 who prepares the Treasurer's Report on a monthly basis. The Financial Services Assistant
reconciles this amount to the LAIF Report sent to the City.
X X
If securities are purchased, the Treasurer should determine the type of investment and
27 maturity in accordance with the City investment policy. A separate file for each transaction
will be created. The Treasurer will obtain the approval of the City Manager before
commencing the purchase.
X X
The Treasurer will next obtain bids from broker/dealers for the investments to be obtained.
28 The Treasurer will instruct the lowest successful broker/dealer to deliver securities to the
City custodian on the settlement date.
X
The Treasurer will receive a copy of the Bloomberg or equivalent screen printout from the
broker/dealer the same day and will receive a trade confirmation several days later from
29 the successful broker/dealer. The Treasurer will take information off the Bloomberg screen
printout and prepare a trade settlement instruction/authorization form which is faxed to the
City custodian.
X
The Treasurer will transfer funds into the checking account by the settlement date. The
30 Custodian will automatically withdraw the funds from the checking account and deliver the
securities into the custodian account.
x
City of La Quinta
Daily Investment Activity
Treasurers Office
Activity
The Treasurer will review the PC Manager report that is received the next day to ensure
that the funds that have been withdrawn match the amount reported on the trade
31 settlement by the custodian. On the settlement date the Treasurer will forward the Account
Technician information on this investment purchase. The Account Technician will enter the
investment purchase into the daily cash report by decreasing the money market account
and increasing the investment account on the next business day cash report.
The Treasurer will receive a fax printout of the purchase/sale of the investment from the
32 custodian. The Treasurer may also able to inquiry through modem of the pending trade
prior to settlement if adequate time between the purchase and settlement dates exist.
The investment policy has a buy and hold investment strategy, therefore, the sale of
investments is not anticipated. If the sale of investments before maturity is required it will
33 be done to meet liquidity needs or because of diminishing credit rating. All sale of
investments before maturity require the prior approval of the City Manager. In addition, all
sales require disclosure to the Investment Advisory Board in a manner that will clearly
identify such sales.
The Treasury will contact the three broker/dealers to obtain bids for the sale of investments
before maturity. The Treasurer will accept the highest bid. The Treasurer will receive a
34 copy of the Bloomberg screen printout. The Treasurer will take information off the
Bloomberg screen and prepare a trade settlement instruction/authorization form which is
faxed to the City custodian.
The Trade Settlement Instruction/Authorization gives the settlement date. The Custodian
35 will release the City Investments when the cash is received from the Broker/Dealer. After
the transaction takes place the cash is transferred to the City Checking Account.
36 For investments that mature on time, the Treasurer will assess the cash needs of the City.
37 If no future trade is done that will settle on the day the previous investment matures, the
cash received will be transferred by the custodian to the checking account.
If the Treasurer does another trade that settles on the same day that the previous
38 investment matures, the difference in prices will either be sent to or forwarded from the
Checking Account by the Custodian. The Treasurer must ensure that funds are available in
the Checking Account if the new investments cost more than the matured investments.
Financial
Accounting Services Account Account
Treasurer Manager Assistant Technician Secretary Clerk
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office Financial
Accounting Services
Activity Report Treasurer Manager Assistant
The Financial Services Assistant is responsible for
the preparation of all pages of the monthly
1 Treasurer's Report, except for the Six Month Cash
Flow Report which is prepared by the Treasurer.
The Treasurer is responsible for the review,
approval and submission of the Treasurer's Report. X X
2 The followings records are used in the preparation
of the monthly Treasurer's Report:
Daily Cash Reports
Monthly Custodian Account Printout & Statements
Monthly Bond Trustee Statements
Monthly Bank Statements
Monthly LAIF Statement
Balance Sheet
The Financial Services Assistant receives the
3 monthly account statements from the bond trustees
and City custodian typically 10 days after the end
of the month. X
The Financial Services Assistant enters the
purchases and sales listed in the City custodian
4 printouts into the Treasurer's Report. The Financial
Services Assistant also enters the month end
holdings into the Treasurer's Report from the City
custodian printouts. Activity & Holdings X
The Financial Services Assistant summarizes the
monthly transactions from each bond issue
sub -account into a spreadsheet. This spreadsheet
5 shows the interest that was earned, and
disbursements, debt service payments, and
transfers between sub -accounts that were -made.
The Financial Services Assistant enters the month
end holdings into the Treasurer's Report. Holdings X
The Financial Services Assistant enters the
6 purchases and sales that were made for
government investments and mutual funds from the
bond funds into the Treasurer's Report. Activity X
The Treasurer compares the LAW balances
7 reflected on the LAIF spreadsheet and the
balances reported on the Daily Cash Report at
month end. X
The Treasurer forwards a copy of the LAIF
spreadsheet to the Financial Services Assistant.
The Financial Services Assistant records the LAIF
purchases and sales and quarterly interest activity
in the Treasurer's Report. In addition, the Financial
Services Assistant receives a report directly from
LAIF with account balances. Activity X X
Secretary
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity Report
The Financial Services Assistant records the month
end LAW balances in the Treasurer's Report and
9 interest rate and market value information is
reflected in the Treasurer's Report. In addition to
the LAIF spreadsheet, LAIF also sends a monthly
holdings report. Holdings
The Financial Services Assistant, on a monthly
10 basis, reconciles the bank accounts and enters the
book and bank balances into the Treasurer's
Report as well as any interest rate information. Holdings
The Financial Services Assistant compares the
ending cash as reflected in the month end holdings,
11 month end investments by type, month end fund
summary and month end trial balance to ensure
that all of the ending amounts are in agreement.
The Financial Services Assistant calculated the
12 average interest rate and average maturity of the
portfolio. Holdings
The Financial Services Assistant enters the six
13 month Treasurer's Bill Benchmark from the US
Treasury Department via their website on a monthly
basis. Holdings
After all cash entries are made for the month the
14 Financial Service Assistant prepares the monthly
trial balance spreadsheet for the City, RDA, and
Financing Authority. Balance Sheet
The Financial Services Assistant records all of the
cash balances from the accounting software into
15 the fund summary section of the Treasurer's
Report. The Financial Services Assistant
reconciles the cash balances between these two
reports and variances investigated. Fund Balances
The Financial Services Assistant updates the
16 monthly summary of cash by investment type in the
Treasurers Report. Fund Balances
17 The Financial Services Assistant determines if the
investments are surplus or non -surplus funds. Holdings
The Financial Services Assistant updates the
surplus worksheet by subtracting from total actual
18 funds the restricted investments, negative bank
account balances, and accounts payable payments
to arrive at surplus funds. Actual and Surplus Funds
Accounting
Treasurer Manager
The Financial Services Assistant updates the
Treasurer's Report Authorized Investments and
Diversification page. Any exception that is noted
19 should be brought to the Treasurers attention. If
the Financial Services Assistant and Treasurer do
not agree on the exception then the City Manager Authorized Investments
should be consulted. and Diversification X
Financial
Services
Assistant Secretary
M
R
X
X
R.
X
I
X
r
City of La Quinta
Preparation of Monthly Treasurer's Report
Treasurers Office
Activity
The Financial Services Assistant, in consultation
with the Treasurer, updates the Treasurer's Report
20 cover page showing the increase and/or decreases
in the investment types and the reason for the
changes.
The Financial Services Assistant forwards a copy
21 of the Treasurer Report to the Treasurer consisting
of the following:
Treasurers Cover Letter
Authorized Investments And Diversification
Summary of Holdings
Summary of Investment Activities
Reconciliation of Actual and Surplus Funds
Distribution of Cash & Investments & Balances
Trial Balance for City, RDA and Financing Authority
The Treasurer reviews the Treasurer's Report and
returns the document for corrections, if any, to the
Financial Services Assistant. After any corrections
22 have been made the Treasurer attaches the Six
Month Cash Flow Report, signs and dates the
report and forwards the report to Department
Secretary.
The Department Secretary prepares a staff report
and attaches the Treasurer's Report for the
Investment Advisory Board Agenda. The Treasurer
23 signs the staff report and the Treasurer's report is
included in the agenda. For the City Council
agendas, the Department Secretary prepares an
Agenda Item Processing Form (AIPF) and attaches
the Treasurer's Report.
The Financial Services Assistant forwards the
monthly investment activity sent by LAIF to the
24 Department Secretary who prepares a staff report
for the Investment Advisory Agenda. The Treasurer
reviews the report and signs the staff report which
is included in the agenda.
Treasurer's Cover Page
Accounting
Treasurer Manager
X
Financial
Services
Assistant
X
R
R.
Secretary
X
In
`..' 7
May 30, 2000
Mr. John M. Falconer, Treasurer
City of La Quinta
78-495 Calle Tampico
La Quints, CA 92253
Dear John:
Donald J. Moulin
78-863 Via Carmel
La Quinta, California 92253
(760) 564-1081
Concern with Investment Policvfor 2000-2001
Assuming the Investment Policy for 2000-2001 presented for final approval at the June 7, 2000,
meeting of the IAB includes the same provisions as tentatively approved at the IAB meeting on
May 10, 2000, I intend to vote for approval, but will request that the minutes describe my
continuing concern with the investment limitations for securities of I.S. government agencies. I
drafted two paragraphs that are attached. I will ask that they be included in the minutes of the
June 7, 2000, meeting.
Please distribute the comments with the other material for the June 7 meeting so the other board
members have an opportunity to see them in advance. This is merely a repetition of the thoughts
I expressed at our previous meetings, but I do not want to surprise anyone. I would like it to be
covered during the discussion of the Investment Policy on the agenda.
Thanks.
Sin e1y,
Donald J. Moulin
W
Board Member Moulin requests that the minutes covering the approval of the Investment Policy
for 2000/2001 explain his continuing concern with the U.S. Government and Related Issues
section on pages 9 and 10. Last year Board Member Moulin recommended that this section of
the Policy be revised to clearly distinguish between direct obligations of the U.S. government
backed as to principal and interest by its full faith and credit and obligations of U.S. government
agencies, instrumentalities and sponsored enterprises not backed by the full faith and credit of the
U.S. government. The Board agreed and changed the Policy to recognize this distinction, but
did not adopt Board Member Moulin's recommendation that, once this distinction is made, the
investment limitations recognize the difference in credit risk of guaranteed and non -guaranteed
financial instruments. Board Member Moulin believes that the investment limitations of 75 % of
the categories and 25 % for single issuer should be lower for non -guaranteed than for guaranteed
obligations as a recognition of the differing inherent risks. For example, the existing Policy
allows the City to invest simultaneously up to 25 % of the portfolio in FNMA obligations, 25.% in
FHLMC obligations, 25 % in FHLB obligations -and 25 % in Federal Farm Credit Bank
obligations. The purpose of first three of these agencies is to provide funds for home mortgage
loans. The latter agency makes loans to farmers. In such circumstances, the City would be
100% at risk for non -guaranteed obligations of U.S. agencies either highly influenced by the real
estate market or farm production and prices. Adverse conditions in the real estate and farm
markets periodically occur in our system, sometimes at the same time. Board Member Moulin
believes that the City subjects itself to unnecessary risk by allowing this concentration of its
portfolio, and he favors more restrictive limitations to lower the risk and diversify
He voted against approval of the Investment Policy in 1999 partly for this reason. the portfolio.
Board Member Moulin recognizes that the Treasurer exercises good judgment to diversify the
portfolio and would not concentrate the portfolio in similar risk U.S. agency securities.
However, Board Member Moulin believes that the Policy should require such prudence. An
example of similar prudence was shown by the Board and the Treasurer in their review of the
Investment Policy for LAER They recognized that the investments of LAIF have become more
risky, and the investment limitation in LAIF was lowered from 35% to 20% of the portfolio. At
the same time, investment limitations in commercial paper and in diversified management
companies in the form of money market mutual funds were increased to allow the Treasurer
greater flexibility in view of the restrictions placed on investments in LAIF. One change allows
investments in money market funds that invest in U.S. agency securities, relaxing the former
restriction to funds investing only in direct issues of the U.S. Treasury. Board Member Moulin
agrees with these changes, but notes that the addition of money market funds investing in U.S.
agency securities increases the City's aforementioned exposure to these non -guaranteed
obligations. He believes that the Investment Policy, as it does in the LAIF situation, should
recognize the risks and include a more restrictive limitation for investments in non -guaranteed
U.S. agency securities.
INVESTMENT ADVISORY BOARD
Meeting Date: July 12, 2000
TITLE:
Month End Cash Report - June 2000
and Revised May 2000
BACKGROUND:
Correspondence & Written
Material Item A
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances, ) but would report in a timely fashion
selected cash balances.
RECOMMENDATION:
Information item only.
, Finance Director
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FRB: H.15--Selected Interested Rate ... b-Only Daily Update-- June 30, 2000
http://www.federalreserve.gov/Releases/H15/update/
Federal Reserve Statistical. Release
*e1ected Interest Rates
Release Date: June 301, 2000
H.15: Release I Release dates I About I ASCII I Historical data I Daily update
H.15 Daily Update
The weekly release is posted on Monday. Daily updates of the weekly release are posted
Tuesday through Friday on this site.
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
Yields in percent per annum
Instruments
SELECTED INTEREST RATES
Federal funds (effective) 1 2 3
Commercial paper 3 4 5 6
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Bankers acceptances (top rated) 3 4 7
3-month
6-month
CDs (secondary market)
1-month
3-month
6-month
Eurodollar deposits (London) 3 9
1-month
3-month
6-month
Bank prime loan 2 3 10
Discount window borrowing 2 11
U.S. Government securities
Treasury bills
Auction high 3 4 12
3-month
For immediate release
June 30, 2000
Mon Tue Wed Thu
Jun 26 Jun 27 Jun 28 Jun 29
6.63
6.56
6.50
6.76
6.56
6.56
6.58
6.59
6.56
6.56
6.57
6.56
6.56
6.58
6.58
6.58
6.57
6.56
6.58
6.54
6.58
6.60
6.60
6.56
6.57
6.59
6.61
6.58
6.60
6.62
6.62
6.64
6.70
6.72
6.70
6.70
6.64
6.66
6.66
6.60
6.73
6.74
6.74
6.73
6.89
6.89
6.89
6.96
6.63
6.66
6.66
6.56
6.69
6.72
6.75
6.72
6.88
6.88
6.88
6.94
9.50
9.50
9.50
9.50
6.00
6.00
6.00
6.00
5.68
� P-114
J 4
1 of 3 07/05/2000 7:54 AM
FRB: H.15--Selected Interested Rate ... b-Only Daily Update-- June 30, 2000
http://www.federalreserve.gov/Releases/H 15/update/
6-month
1-year
Secondary market 3 4
3-month
6-month
1-year
Treasury constant maturities
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Composite
Over 10 years (long-term) 14
Corporate bonds
Moody's seasoned
Aaa
Baa
State & local bonds 15
Conventional mortgages 16
5.96
5.66
5.67
5.65
5.68
5.94
5.96
5.95
5.95
5.82
5.82
5.80
5.76
5.82
5.83
5.81
5.85
6.23
6.23
6.22
6.22
6.16
6.16
6.14
6.11
6.50
6.50
6.43
6.37
6.43
6.43
6.38
6.32
6.29
6.29
6.28
6.21
6.34
6.33
6.33
6.27
6.11
6.10
6.11
6.04
6.34
6.31
6.33
6.24
5.99
5.95
5.97
5.88
6.28 6.25
7.78 7.74
8.52 8.48
6.28 6.19
7.76 7.68
8.51 8.44
5.77
FOOTNOTES
1. The daily effective federal funds rate is a weighted average of rates
on trades through N.Y. brokers.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of
the current week; monthly figures include each calendar day in the
month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
5. 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.
6. 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.
7. Representative closing yields for acceptances of the highest rated
money center banks. Source: Telerate, Inc.
8. An average of dealer offering rates on nationally traded certificates
of deposit.
9. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
10. Rate posted by a majority of top 25 (by assets in domestic offices)
insured U.S.-chartered commercial banks. Prime is one of several base
rates used by banks to price short-term business loans.
11. Rate for the Federal Reserve Bank of New York.
12. Auction date for daily data; weekly and monthly averages computed
on an issue -date basis. Data are stop yields from uniform -price
auctions, rounded to two decimal places. (The U.S. Treasury
publishes stop yields to three decimal places at
http://www.publicdebt.treas.gov).
13. Yields on actively traded issues adjusted to constant maturities.
Source: U.S. Treasury.
2 of 3 07/05/2000 7:54 AM
FRB: H.15--Selected Interested Rate ... b-Only Daily Update-- June 30, 2000 http://www.federalreserve.gov/Releases/H15/update/
14. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years.
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
16. Contract interest rates on commitments for fixed-rate. first mortgages.
Source: FHLMC.
DESCRIPTION OF THE TREASURY CONSTANT MATURITY SERIES
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 Reserve Bank of New
York. The constant maturity yield values are read from 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 10 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 update
Home I Statistical releases
To comment on this site, please fill out our feedback form.
Last update: June 30, 2000
3 of 3 07/05/2000 7:54 AM
FRB:Commercial Paper Rates and Outstandings
http://www.federalreserve.gov/Releases/CP/
Federal Reserve Release
Release I About I OutstandI Historical discount rates I Historical outstanding
Data as of July 3, 2000 Volume
Commercial Paper Rates and Outstandings statistics
Derived from data supplied by The Depository Trust Company 2000.02
Posted July 5, 2000
Discount rates
AA
financial
AA
nonfinancial
A2/P2
nonfinancial
6.99
7.24
6.71
6.68
7.04
-+ty 6.60
6.59
6.95
0
6
I
6.56
6.84
0• 6.56
6.57
6.84
i
Om
6.55
6.55
F6.92
Yield curve
Money market basis
Percent
7.3
7.2
7.1
7.0
6.8
6.6
6.7
6.6
1 7 15 30 BO 90
as ys to w u rity
Fina ncin I — — — Nonf ina naia I • •• • • A2/P2
Discount rate spread
Thirty -day A2/P2 less AA nonfinancial commercial paper (daily)
Basis points
110
100
90
80
70
60
50
40
w
20
10
01 MAY98 09AU O98 17N OV98 25FE 899 OU U N99 13SEP99 22 0 EC99 31 MAROO 09LI U L00
-- — A2/P2 spread, 5—day moving ave raga
61 1 ZJ 7
1 of 3 07/05/2000 7:51 AM
FRB:Commercial Paper Rates and Outstandings
http://www.federalreserve.gov/Releases/CP/
Discount rate history
Thirty -day commercial paper (daily)
Percent
8
7
r 4
01 MAAY98 09AUG98 17NOV98 25FEE99 05JUN99 13SEP99 22❑EG99 31 MAROD 09JU LOO
financial — — — Nonfinancial ••••• A2/P2
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
1Z 0 1
Billions of dollars
340
Z77 330
320
1 100 310
A ,,d 300
290
1 GOO 280
270
260
r, !
250
900 — 240
230
220
ADO 210
01MAY98 09AUG98 17NOV98 25FES99 05JUN99 13SEP99 22❑EC99 31MAROO 09JULOO
Ana naia I — — — Nonfina nc is I
The daily commercial paper release will usually be available before 11:00am EST. However, the
Federal Reserve makes no guarantee regarding the timing of the daily commercial paper release.
When the Federal Reserve is closed on a business day, yields for the previous business day will
appear in the historical discount rates table. This policy is subject to change at any time without
notice.
MW
2 of 3 07/05/2000 7:51 AM
FRB: Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CP/
Commercial raper outstanding
Commercial paper outstanding, miscellaneous cate ones
Release I About I OutstandI Historical discount rates I Historical outstandings
Home I Statistical releases
To comment on this site, please fill out our feedback form.
Last update: July 5, 2000
we
3 of 3 07/05/2000 7:51 AM
LAIF Performance Report, Philip Angelides
http://www.treasurer.ca.gov/Stolperfhtm
t", e- Treasurer
Phi 1P Angelldes,: Sta
Inside the State Treasurer's Office
Local Agency Investment Fund
LAIF Performance
Reporting Date:
Effective Date:
Quarter Yield:
Daily:
Year:
Life:
Quarter Ending 3/31/00
Apportionment Rate:
Earnings Ratio:
Fair Value Factor:
Monthly Average For May:
06/28/00
06/28/00
6.18%
- 6.41%
5.70%
188
5.80%
.00015841267567897
.997765840
6.190%
1 of 07/05/2000 7:51 AM
LAIF Performance Report, Philip Angelides http://www.treasurer.ca.gov/Stolperfhtm
Pooled Money Investment Account
Portfolio Composition
42.0 Billion
Loans Reverses 05/31 /00
3.62% -1.45% Treasuries
Corporate 8.87%
Commercial
Paper
28.05%
Banl
Accept
0.09%
CDs/BN's
23.61 %
Deposits
.15%
lortgages
0.03%
Agencies
23.21 %
■ Treasuries
❑ Time Deposits
■ Mortgages
Agencies
■ D's/B N's
❑ Bankers Acceptances
El Loans
■ Reverses
2 of 2 07/05/2000 7:51 AM
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
July 12, 2000
Pooled Money Investment Board Report
for April 2000
BACKGROUND:
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for April, 2000 is included in the
agenda packet.
RECOMMENDATION
Receive & File
n M. Falconer, Finance Director
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
APRIL 2000
TABLE OF CONTENTS
SUMMARY...........................................................................1
SELECTED INVESTMENT DATA.............................................2
PORTFOLIO COMPOSITION...................................................3
INVESTMENT TRANSACTIONS ...............................................
TIME DEPOSITS..................................................................
20
BANK DEMAND DEPOSITS...................................................29
POOLED MONEY INVESTMENT BOARD DESIGNATION .......... 30
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF APRIL 2000 WITH APRIL 1999
(DOLLARS IN THOUSANDS)
Average Daily Portfolio
Accrued Earnings
I Effective Yield
I Average Life -Month End (In Days)
Total Security Transactions
Amount
Number
Total Time Deposit Transactions
Amount
Number
Average Workday Investment Activity
Prescribed Demand Account Balances
For Services
For Uncollected Funds
$ 35,090,818 $ 33,830,978
$ 172,970 $ 142,331
6.014 5.119
190
202
$ 2493949195 $ 1893609308
533 410
+1,259,840
+309639
+.895
42
+69033,887 I
+123
$ 1,406,390
$
192989695
+107,695
100
80
+20
$ 1,290,029
$
8939591
+396,438
$ 1689622
$
2189127
-49,505
$ 325,565
$
274,936
+50,629
1
PHILIP ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
APRIL 30, 2000
PERCENTAGE
CHANGE FROM
TYPE OF SECURITY
AMOUNT
PERCENT
PRIOR MONTH
Government
Bills .
$
1,648,332
3.93
-.10
Bonds
0
0.00
0.00
Notes
2,4019021
5.71
-0.16
Strips
0
0.00
0.00
Total Government
$
4,0499353
9.64
-.26
Federal Agency Coupons
$
3,393,708
8.08
-2.47
Certificates of Deposit
7,483,858
17.81
+.61
Bank Notes
2,400,006
5.71
+.16
Bankers' Acceptances
$
369707
0.09
+.09
Repurchases
0
0.00
0.00
Federal Agency Discount Notes
6,627,496
15.77
+.71
Time Deposits
39281,990
7.81
-1.52
GNMAs
1,336
0.00
0.00
Commercial Paper
11,411,972
27.16
+7.02
FHLMC
13,159
0.03
-0.01
Corporate Bonds
2,394,683
5.70
-1.89
Pooled Loans
117879200
4.25
-1.41
GF Loans
0
0.00
0.00
Reversed Repurchases
-862,799
-2.05
+1.03
Total (All Types)
$ 42,0189669
100.00
INVESTMENT ACTIVITY
Pooled Money
Other
Time Deposits
Totals
PMIA Monthly Average Effective Yield
Year to Date Yield Last Day of Month
APRIL 2000
NUMBER
AMOUNT
533
$ 2493949195
18
30,483
100
1,406,390
651
$ 25,831,068
2
6.014
5.568
MARCH 2O00
NUMBER AMOUNT
431 $19,"1,306
26 22,382
115 1,241,695
572 $ 20,705,383
5.851
5.518
Pooled Money Investment Account
Portfolio Composition
$42.0 Billion
Reverses
Loans _2.05% Treasuries
n^rr%^r,min 4.25% 0 rZA01
Commercial
Paper
27.16%
Bar
Acce�__..___
0.09%
CD's/BN's
23.52%
posits
4/30/00
8 Treasuries
ortgages
B Time Deposits
0.03% j
■ Mortgages
DAgencies
■ CD's/BN's
0 Bankers Acceptances
■ Repo
kgencies
0 Commercial Paper
23.85%
0 Corporate Bonds
O Loans
0 Reverses
3
04/01/00 REDEMPTIONS
MTN GMAC 9.375% 04/01/00 5.331 $36,150 312 $1,712,335.12 5.367
MTN World 8.060% 04/01/00 5.030 5,000 474 335,230.55 5.032
MTN World 8.040% 04/01/00 5.030 10,000 474 670,366.66 5.032
NO PURCHASES
04/03/00 REDEMPTIONS
CID
GECC
04/03/00
6.180
50,000
3
25,750.00
6.269
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
Amer Exp
04/03/00
6.080
50,000
4
33,777.79
6.168
CID
FMCC
04/03/00
6.010
5,000
5
4,173.61
6.098
CID
FMCC
04/03/00
6.010
50,000
5
41,736.11
6.098
CID
FMCC
04/03/00
6.010
50,000
5
41,736.11
6.098
CID
Citigroup
04/03/00
5.970
.35,000
18
104,475.00
6.071
CID
Citigroup
04/03/00
5.970
50,000
18
149,250.00
6.071
CID
Heller
04/03/00
5.890
50,000
18
147,250.00
5.989
CID
Salomon
04/03/00
5.980
50,000
18
149,500.00
6.081
CID
Salomon
04/03/00
5.980
50,000
18
149,500.00
6.081
CID
FMCC
04/03/00
5.850
50,000
19
154,375.00
5.949
CID
FMCC
04/03/00
5.850
50,000
19
154,375.00
5.949
CID
FMCC
04/03/00
5.850
50,000
19
154,375.00
5.949
CID
GMAC
04/03/00
5.810
50,000
31
250,152.78
5.920
CID
GMAC
04/03/00
5.810
50,000
31
250,152.78
5.920
CID
Morg Stan
04/03/00
5.850
50,000
32
260,000.00
5.962
CID
Morg Stan
04/03/00
5.850
50,000
32
260,000.00
5.962
CID
Morg Stan
04/03/00
5.850
50,000
32
260,000.00
5.962
CID
Heller
04/03/00
5.890
50,000
34
278,138.89
6.005
CID
SRAC
04/03/00
5.830
50,000
35
283,402.78
5.944
CP
FMCC
04/03/00
5.760
50,000
38
304,000.00
5.875
CID
FMCC
04/03/00
5.760
50,000
38
304,000.00
5.875
CID
Amer Exp
04/03/00
5.760
50,000
38
304,000.00
5.875
CID
Amer Exp
04/03/00
5.760
50,000
38
304,000.00
5.875
CID
GMAC
04/03/00
5.720
50,000
69
548,166.67
5.863
CID
GMAC
04/03/00
5.720
50,000
69
548,166.67
5.863
CID
Morg Stan
.04/03/00
5.740
50,000
69
550,083.33
5.884
CID
Morg Stan
04/03/00
5.740
50,000
69
550,083.33
5.884
MTN
W/F
5.310% 04/03/00
5.360
50,000
391
2,858,000.00
5.380
MTN
IBM
5.080% 04/03/00
5.130
50,000
404
2,840,666.67
5.135
PURCHASES
CID
Assoc
04/04/00
6.200
50,000
CID
Assoc
04/04/00
6.200
50,000
CID
Assoc
04/04/00
6.200
50,000
4
04/03/00 PURCHASES (continued)
CP
Assoc
04/04/00
6.200
50,000
CP
Household
04/04/00
6.210
50,000
CP
Household
04/04/00
6.210
50,000
04/04/00 REDEMPTIONS
CP
Assoc
04/04/00
6.200
50,000
1
8,611.11
6.287
CP
Assoc
04/04/00
6.200
50,000
1
8,611.11
6.287
CP
Assoc
04/04/00
6.200
50,000
1
8,611.11
6.287
CP
Assoc
04/04/00
6.200
50,000
1
8,611.11
6.287
CP
Household
04/04/00
6.210
50,000
1
8,625.00
6.297
CP
Household
04/04/00
6.210
50,000
1
8,625.00
6.297
CP
GMAC
04/04/00
5.830
50,000
60
485,833.33
5.968
CP
GMAC
04/04/00
5.830
50,000
60
485,833.33
5.968
Disc Notes
FNMA
04/04/00
4.710
50,000
348
2,276,500.00
5.003
Disc Notes
FNMA
04/04/00
4.710
-50,000
348
2,276,500.00
5.003
PURCHASES
CP
GECC
04/05/00
6.000
50,000
CP
GECC
04/05/00
6.000
50,000
CP
GECC
04/05/00
6.000
50,000
CP
GECC
04/05/00
6.000
50,000
CP
Hertz
04/10/00
6.000
25,000
CP
FMCC
04/10/00
5.990
25,000
CP
FMCC
04/10/00
5.990
50,000
CP
FMCC
04/10/00
5.990
50,000
CP
FMCC
04/10/00
5.990
50,000
04/05100. REDEMPTIONS
CP
GECC
04/05/00
6.000
50,000
1
8,333.33
6.084
CP
GECC
04/05/00
6.000
50,000
1
8,333.33
6.084
CP
GECC
04/05/00
6.000
50,000
1
8,333.33
6.084
CP
GECC
04/05/00
6.000
50,000
1
8,333.33
6.084
CP
Amer Exp
04/05/00
6.060
50,000
9
75,750.00
6.153
CP
Amer Exp
04/05/00
6.060
50,000
9
75,750.00
6.153
CP
Baxter
04/05/00
6.050
32,000
13
69,911.11
6.147
CP
Heller
04/05/00
5.900
50,000
35
286,805.56
6.016
CP
GECC
04/05/00
5.830
50,000
36
291,500.00
5.945
CP
GECC
04/05/00
5.830
50,000
36
291,500.00
5.945
CP
SRAC
04/05/00
5.910
40,000
37
242,966.67
6.028
PURCHASES
CP
GECC
04/06/00
5.980
50,000
CP
GECC
04/06/00
5.980
50,000
CP
GECC
04/06/00
5.980
50,000
CP
GECC
04/06/00
5.980
50,000
5
04/05/00 PURCHASES (continued)
CP
Amer Exp
CP
Amer Exp
CP
GMAC
CP
GMAC
CP
GMAC
CP
GMAC
CP
SRAC
04/06/00 RRS
Treas
Notes
Treas
Notes
SALES
FHLB
FHLB
REDEMPTIONS
CP
GECC
CP
GECC
CP
GECC
CP
GECC
Disc Notes
FNMA
Disc Notes
FNMA
PURCHASES g/
CD
U/B Calif
CD
U/B Calif
PURCHASES
CP
Heller
CP
Heller
CP
W/F
CP
W/F
CP
SRAC .
CP
Household
CP
Merrill
CP
Merrill
FHLB
04/07/00 REDEMPTIONS
CD
CIBC
CD
CIBC
CD
CIBC
04/10/00
5.930
20,000
04/10/00
5.930
50,000
06/30/00
6.070
50,000
06/30/00
6.070
50,000
06/30/00
6.070
50,000
06/30/00
6.070
50,000
06/30/00
6.100
50,000
5.500% 05/31/00 5.760 50,000
5.500% 05/31/00 5.760 50,000
6.750%
02/15/02
6.781
25,000
7
122,375.00
25.638
6.750%
02/15/02
6.781
50,000
7
244,750.00
25.638
04/06/00
5.980
50,000
1
8,305.56
6.064
04/06/00
5.980
50,000
1
8,305.56
6.064
04/06/00
5.980
50,000
1
8,305.56
6.064
04/06/00
5.980
50,000
1
8,305.56
6.064
04/06/00
4.710
50,000
352
2,302,666.67
5.005
04/06/00
4.710
50,000
352
2,302,666.67
5.005
6.080%
05/31/00
6.080
50,000
6.080 %
05/31/00
6.080
50,000
06/01/00
6.100
50,000
06/02/00
6.100
50,000
06/30/00
6.070
35,000
06/30/00
6.070
50,000
07/05/00
6.200
50,000
07/10/00
6.100
50,000
07/11/00
6.110
15,000
07/11 /00
6.110
50,000
6.625% 04/06/01
6.679
50,000
5.890% 04/07/00 5.860 4,000 30 19,537.01 5.942
5.890% 04/07/00 5.860 50,000 30 244,212.49 5.942
5.890% 04/07/00 5.860 50,000 30 244,212.49 5.942
6
04/07/00 REDEMPTIONS (continued)
CP
FMCC
04/07/00
6.060
15,000
11
27,775.00
6.155
CP
FMCC
04/07/00
6.060
50,000
11
92,583.33
6.155
CP
Morg Stan
04/07/00
6.050
5.0,000
17
142,847.22
6.151
CP
Bear
04/07/00
5.840
50,000
31
251,444.44
5.951
CP
Bear
04/07/00
5.840
50,000
31
251,444.44
5.951
CP
Bear
04/07/00
5.840
50,000
35
283,888.89
5.954
CP
Heller
04/07/00
5.900
50,000
37
303,194.44
6.018
CP
Salomon
04/07/00
5.830
35,000
38
215,386.11
5.947
PURCHASES
CP
W/F
07/03/00
6.090
50,000
CP
W/F
07/03/00
6.090
50,000
CP
Bear
07/07/00
6.130
50,000
CP
Bear
07/07/00
6.130
50,000
CP
GMAC
07/10/00
6.110
50,000
CP
GMAC
07/10/00
6.110
50,000
CP
Heller
07/14/00
6.180
25,000
CP
Heller
07/14/00
6.180
50,000
CP
Salomon
07/14/00
6.100
50,000
CP
Salomon
07/14/00
6.100
50,000
04/10/00 RRS
Treas Bills 03/01/01 5.750 50,000
Treas Bills 03/01 /01 5.750 50,000
REDEMPTIONS
CP
Amer Exp
04/10/00
5.930
20,000
5
16,472.22
6.017
CP
Amer Exp
04/10/00
5.930
50,000
5
41,180.56
6.017
CP
Hertz
04/10/00
6.000
25,000
6
25,000.00
6.089
CP
FMCC
04/10/00
5.990
25,000
6
25,000.00
6.079
CP
FMCC
04/10/00
5.990
50,000
6
49,916.67
6.079
CP
FMCC
04/10/00
5.990
50,000
6
49,916.67
6.079
CP
FMCC
04/10/00
5.990
50,000
6
49,916.67
6.079
CP
Amer Exp
04/10/00
6.010
50,000
18
150,250.00
6.111
CP
Amer Exp
04/10/00
6.010
50,000
18
150,250.00
6.111
CP
Amer Exp
04/10/00
6.020
50,000
19
158,861.11
6.123
CP
Amer Exp
04/10/00
6.020
50,000
19
158,861.11
6.123
CP
Morg Stan
04/10/00
6.050
50,000
20
168,055.55
6.154
CP
Morg Stan
04/10/00
6.050
50,000
20
168,055.55
6.154
Disc Notes
FHLB
04/10/00
4.710
38,912
353
1,797,118.29
5.006
Disc Notes
FHLB
04/10/00
4.710
50,000
353.
2,309,208.33
5.006
Disc Notes
FNMA
04/10/00
4.710
50,000
353
2,309,208.33
5.006
MTN
W/F
5.225% 04/10/00
5.260
48,900
390
2,737,333.71
5.262
7
04/10/00 -PURCHASES Sj
CP CAFCO
06/01 /00
6.050
50,000
CP CAFCO
06/01/00
6.050
50,000
PURCHASES
CD U/B Calif
6.380%
09/27/00
6.380
6,000
CD U/B Calif
6.380%
09/27/00
6.380
50,000
CD U/B Calif
6.380%
09/27/00
6.380
50,000
CP Text Fin
04/11/00
6.070
15,000
CP Text Fin
04/11/00
6.070
50,000.
04/11/00
REDEMPTIONS
CP Text Fin
04/11/00
6.070
15,000
CP Text Fin
04/11/00
6.070
50,000
NO PURCHASES
04/12/00
REDEMPTIONS
CD CommerzBk
5.090%
04/12/00
5.150
27,000
CD CommerzBk
5.090%
04/12/00
5.150
50,000
CD CommerzBk
5.090%
04/12/00.
5.150
50,000
PURCHASES
BN B/A
6.370%
09/27/00
6.370
50,000
CD Dresdner
6.350%
09/27/00
6.350
50,000
CD Dresdner
6.350%
09/27/00
6.350
50,000
CP GMAC
07/03/00
6.070
50,000
CP Bear
07/11 /00
6.130
50,000
04/13/00
RRS
Treas Notes
5.500%
05/31/00
5.760
50,000
Treas Notes
5.500%
05/31 /00
5.760
50,000
PURCHASES S/
CD Wachovia
6.040%
05/31 /00
6.040
50,000
CD Wachovia
6.040%
05/31 /00
6.040
50,000
04/14/00
RRS
Treas Bills
12/07/00
5.570
50,000
Treas Bills
12/07/00
5.570
50,000
Treas Notes
5.500%
05/31 /00
5.760
50,000
Treas Notes
5.500%
05/31 /00
5.760
50,000
0
1 2,529.17 6.155
1 8,430.56 6.155
358 1,383,478.01 5.227
358 2,561,996.32 5.227
358 2,561,996.32 5.227
04/14/00 REDEMPTIONS
MTN Dupont
4.998%
04/14/00
PURCHASES g/
CP Amer Exp
04/28/00
CP Amer Exp
04/28/00
CP Amer Exp
05/31/00
CP Amer Exp
05/31/00
PURCHASES
CP FMCC
04/17/00
CP FMCC
04/17/00
CP GECC
08/29/00
CP GECC
08/29/00
CP Merrill
09/27/00
CP Merrill
09/27/00
CP Merrill
09/27/00
04/17/00 REDEMPTIONS
CP FMCC
04/17/00
CP FMCC
04/17/00
PURCHASES
BN B/A
6.360%
09/27/00
BN B/A
6.360%
09/27/00
CD CommerzBk
6.230%
08/15/00
CD US Bank
6.330%
09/27/00
CD US Bank
6.330%
09/27/00
CD ABN Amro
6.350%
09/27/00
CD ABN Amro
6.350%
09/27/00
CP ConAgra
05/08/00
CP Heller
06/30/00
CP GMAC
07/17/00
CP GMAC
07/17/00
CP SRAC
08/01 /00
CP B/A
08/07/00
CP B/A
08/10/00
CP GECC
09/27/00
CP GECC
09/27/00
CP GECC
09/27/00
04/18/00 RRS
Treas Notes
5.500%
05/31/00
Treas Notes
5.500%
05/31/00
Treas Notes
5.500%
05/31/00
5.080 50,000
0
5.970
50,000
5.970
50,000
6.000
50,000
6.000
50,000
366 2,580,300.00 5.150
6.000
50,000
6.000
50,000
6.180
25,000
6.180
50,000
6.220
27,000
6.220
50,000
6.220
50,000
6.000
50,000 3 25,000.00 6.086
6.000
50,000 3 25,000.00 6.086
6.360
10,000
6.360
50,000
6.270
50,000
6.330
50,000
6.330
50,000
6.340
50,000
6.340
50,000
6.170
25,000
6.130
50,000
6.140
50,000
6.140
50,000
6.200
20,000
6.170
50,000
6.170
50,000
6.180
50,000
6.180
50,000
6.180
50,000
5.715 25,000
5.715 50,000
5.715 50,000
04/18/00 PURCHASES 9/
CD
Svenska
CD
Svenska
CD
Svenska
PURCHASES
CID
W/F
CID
W/F
CID
Assoc
CID
Assoc
CID
Assoc
CID
GMAC
CID
GMAC
CID
GMAC
CID
GMAC
CID
GMAC
CID
GMAC
CID
Salomon
CID
Salomon
CID
Bear
CID
Merrill
CID
GMAC
CID
GMAC
CID
GMAC
CID
GMAC
Disc Notes
FHLMC
Disc Notes
FHLMC
Disc Notes
FHLMC
Disc Notes
FHLMC
Disc Notes
FHLMC
Disc Notes
FHLMC
Disc Notes
FHLMC
Treas
Bills
Treas
Bills
04/19/00 REDEMPTIONS
CD
Svenska
CD
Svenska
PURCHASES
BN
B/A
BN
B/A
CD
Bayer Ver
CD
Bayer Ver
CD
CIBC
CD
Bayer Ver
CD
Bayer Ver
6.010% 05/31 /00 6.100 25,000
6.010% 05/31 /00 6.100 50,000
6.010% 05/31 /00 6.100 50,000
05/10/00
6.020
50,000
05/10/00
6.020
50,000
06/02/00
6.040
50,000
06/02/00
6.040
50,000
06/05/00
6.040
50,000
06/30/00
6.060
50,000
06/30/00
6.060
50,000
07/03/00
6.060
10,000
07/03/00
6.060
50,000
07/03/00
6.060
50,000
07/03/00
6.060
50,000
07/11 /00
6.140
50,000
07/11 /00
6.140
50,000
07/27/00
6.140
25,000
08/07/00
6.180
38,000
08/08/00
6.150
50,000
08/08/00
6.150
50,000
08/10/00
6.150
50,000
08/10/00
6.150
50,000
04/09/01
6.160
50,000
04/09/01
6.160
50,000
04/09/01
6.160
50,000
04/09/01
6.160
50,000
04/11/01
6.150
50,000
04/11/01
6.150
50,000
04/11/01
6.150
50,000
03/01/01
5.730
50,000
03/01/01
5.730
50,000
5.100%
04/19/00
5.150
10,000 365 521,971.51 5.222
5.100%
04/19/00
5.150
50,000 365 2,609,857.56 5.222
6.450%
10/27/00
6.450
50,000
6.450%
10/27/00
6.450
50,000
6.380%
09/27/00
6.375
50,000
6.380%
09/27/00
6.375
50,000
6.350%
09/29/00
6.350
50,000
6.380%
09/29/00
6.375
50,000
6.380%
09/29/00
6.375
50,000
10
04/19/00 PURCHASES (continued)
CP
Salomon
05/02/00
6.000
50,000
CP
Assoc
05/08/00
6.000
30,000
CP
Amer Exp
05/08/00
6.000
50,000
CP
Amer Exp
05/08/00
6.000
50,000
CP
Amer Exp
05/09/00
6.000
50,000
CP
Amer Exp
05/09/00
6.000
50,000
CP
ConAgra
05/10/00
6.110
25,000
CP
Amer Exp
05/10/00
6.000
50,000
CP
Amer Exp
05/10/00
6.000
50,000
CP
Hertz
05/10/00
6.010
50,000
CP
Hertz
05/10/00
6.010
50,000
CP
FMCC
05/10/00
6.000
50,000
CP
FMCC
05/10/00
6.000
50,000
CP
FMCC
05/10/00
6.000
50,000
CP
FMCC
05/10/00
6.000
50,000
CP
Household
05/10/00
6.010
50,000
CP
Household
05/10/00
6.010
50,000
CP
Amer Exp
05/11/00
6.000
50,000
CP
Amer Exp
05/11/00
6.000
50,000
CP
Household
05/11/00
6.010
50,000
CP
Household
05/11/00
6.010
50,000
CP
Amer Exp
05/12/00
6.000
50,000
CP
Amer Exp
05/12/00
6.000
50,000
CP
Assoc
05/16/00
6.000
50,000
CP
Assoc
05/16/00
6.000
50,000
CP
FMCC
05/17/00
6.000
50,000
CP
FMCC
05/17/00
6.000
50,000
04/20/00 NO SALES
PURCHASES
CP
Amer Exp
05/15/00
5.990
25,000
CP
ConAgra
05/15/00
6.110
40,000
CP
Amer Exp
05/15/00
5.990
50,000
CP
Amer Exp
05/15/00
5.990
50,000
CP
ConAgra
05/17/00
6.130
25,000
CP
Amer Exp
05/17/00
5.990
25,000
CP
Amer Exp
05/17/00
5.990
50,000
CP
Amer Exp
05/17/00
5.990
50,000
CP
Amer Exp
05/17/00
5.990
50,000
CP
Amer Exp
05/17/00
5.990
50,000
CP
Amer Exp
05/17/00
5.990
50,000
04/21/00 REDEMPTIONS
BN FNB Chic 5.130% 04/21/00 5.130 50,000 5.13 2,622,000.00'" 5.201
BN FNB Chic 5.130% 04/21/00 5.130 50,000 5.13 2,622,000.00 5.201
11
04/21/00 PURCHASES
CID
FMCC
05/05/00
6.000
50,000
CID
FMCC
05/05/00
6.000
50,000
CID
FMCC
05/05/00
6.000
50,000
CID
FMCC
05/05/00
6.000
50,000
CID
FMCC
05/08/00
5.990
35,000
CID
FMCC
05/08/00
5.990
50,000
04/24/00 NO SALES
PURCHASES
BN
B/A
6.470%
10/27/00
6.470
50,000
BN
B/A
6.470%
10/27/00
6.470
50,000
CD
Rabo
6.410%
10/27/00
6.420
50,000
CD
Rabo
6.410%
10/27/00
6.420
50,000
CD
Banc One
6.440%
10/27/00
6.440
50,000
CD
Banc One
6.440%
10/27/00
6.440
50,000
CID
Assoc
04/25/00
5.960
50,000
CP
Assoc
04/25/00
5.960
50,000
CID
Assoc
04/25/00
5.960
50,000
CID
Assoc
04/25/00
5.960
50,000
CID
Assoc
04/25/00
5.960
50,000
CID
Assoc
04/25/00
5.960
50,000
CID
GMAC
04/25/00
5.970
50,000
CID
GMAC
04/25/00
5.970
50,000
CID
GMAC
04/25/00
5.970
50,000
CID
GMAC
04/25/00
5.970
50,000
CID
Amer Exp
05/15/00
5.990
50,000
CID
Amer Exp
05/15/00
5.990
50,000
CID
Amer Exp
05/17/00
5.990
50,000
CID
Amer Exp
05/17/00
5.990
50,000
CID
GECC
08/01 /00
6.140
25,000
CID
GECC
08/01/00
6.140
50,000
MTN
IBM
7.250%
11/01/02
7.030
19,000
MTN FR
FMCC
6.541 %
07/16/02
6.292
30,000
04/25/00 REDEMPTIONS
CD
Deutsche
5.150%
04/25/00
5.190
42,000
368
2,227,980.20
5.263
CD
CommerzBk
5.120%
04/25/00
5.190
50,000
368
2,650,864.17
5.262
CD
CommerzBk
5.120%
04/25/00
5.190
50,000
368
2,650,864.17
5.262
CD
Austria
5.110%
04/25/00
5.145
50,000
370
2,643,055.01
5.216
CD
Austria
5.110%
04/25/00
5.145
50,000
370
2,643,055.01
5.216
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
CID
Assoc
04/25/00
5.960
50,000
1
8,277.78
6.043
12
04/25/00 REDEMPTIONS (continued)
CID
GMAC
04/25/00
5.970
50,000 1
8,291.67
6.053
CP
GMAC
04/25/00
5.970
50,000 1
8,291.67
6.053
CID
GMAC
04/25/00
5.970
50,000 1
8,291.67
6.053
CID
GMAC
04/25/00
5.970
50,000 1
8,291.67
6.053
PURCHASES
BN
B/A
6.420%
09/27/00
6.420
50,000
BN
B/A
6.420%
09/27/00
6.420
50,000
BN
B/A
6.420%
09/27/00
6.420
50,000
BN
Banc One
6.420%
09/29/00
6.420
50,000
BN
Banc One
6.420%
09/29/00
6.420
50,000
BN
Banc One
6.420%
09/29/00
6.420
50,000
CD
ABN Amro
6.440%
10/27/00
6.430
50,000
CD
ABN Amro
6.440%
10/27/00
6.430
50,000
CD
Westpac
6.450%
10/27/00
6.440
50,000
CD
Westpac
6.450%
10/27/00
6.440
50,000
CD
Deutsche
6.450%
10/27/00
6.450
10,000
CD
Deutsche
6.450%
10/27/00
6.450
50,000
CID
W/F
04/26/00
5.860
50,000
CID
W/F
04/26/00
5.860
50,000
CID
W/F
04/26/00
5.860
50,000
CID
W/F
04/26/00
5.860
50,000
CID
Salomon
04/26/00
5.870
50,000
CID
Salomon
04/26/00
5.870
50,000
CID
Salomon
04/26/00
5.870
50,000
CID
Salomon
04/26/00
5.870
50,000
CID
Text Inc
04/26/00
5.880
36,070
CID
Assoc
04/26/00
5.900
50,000
CID
Assoc
04/26/00
5.900
50,000
CID
Assoc
04/26/00
5.900
50,000
CID
Assoc
04/26/00
5.900
50,000
CID
Amer Home
06/02/00
6.060
48,250
CID
GMAC
08/29/00
6.220
50,000
CID
GMAC
08/29/00
6.220
50,000
CID
GECC
09/27/00
6.230
50,000
CID
GECC
09/27/00
6.230
50,000
CID
GECC
09/27/00
6.230
50,000
CID
GECC
09/27/00
6.230
50,000
CID
GECC
09/29/00
6.230
50,000
CID
GECC
09/29/00
6.230
50,000
CID
GECC
09/29/00
6.230
50,000
CID
GECC
09f29/00
6.230
50,000
Disc Notes
FHLB
04/20/01
6.170
50,000
Disc Notes
FHLB
04/20/01
6.170
50,000
Disc Notes
FHLMC
03/29/01
6.210
49,110
Disc Notes
FNMA
04/16/01
6.170
50,000
Disc Notes
FNMA
04/18/01
6.170
50,000
Disc Notes
FNMA
04/18/01
6.170
50,000
13
04/25/00 PURCHASES (continued)
Disc Notes
FNMA
04/18/01
6.170
50,000
Disc Notes
FNMA
04/18/01
6.170
50,000
Treas
Notes
6.500%
03/31 /02
6.433
50,000
Treas
Notes
6.500%
03/31 /02
6.433
50,000
Treas
Notes
6.500%
03/31 /02
6.433
50,000
Treas
Notes
6.500%
03/31 /02
6.433
50,000
Treas
. Notes
6.500%
03/31/02
6.439
50,000
Treas
Notes
6.500%
03/31 /02
6.439
50,000
Treas
Notes
6.500%
03/31 /02
6.439
50,000
Treas
Notes
6.500%
03/31 /02
6.439
50,000
04/26/00 RRS
Treas
Bills
03/01 /01
5.550
50,000
Treas
Bills
03/01 /01
5.550
50,000
REDEMPTIONS
CD
Stnrd Ch
5.140%
04/26/00
5.175
50,000
370
2,658,466.68
5.246
CD
Stnrd Ch
5.140%
04/26/00
5.175
50,000
370
2,658,466.68
5.246
CID
W/F
04/26/00
5.860
50,000
1
8,138.89
5.942
CID
W/F
04/26/00
5.860
50,000
1
8,138.89
5.942
CID
W/F
04/26/00
5.860
50,000
1
8,138.89
5.942
CID
W/F
04/26/00
5.860
50,000
1
8,138.89
5.942
CID
Salomon
04/26/00
5.870
50,000
1
8,152.78
5.952
CID
Salomon
04/26/00
5.870
50,000
1
8,152.78
5.952
CID
Salomon
04/26/00
5.870
50,000
1
8,152.78
5.952
CID
Salomon
04/26/00
5.870
50,000
1
8,152.78
5.952
CID
Text Inc
04/26/00
5.880
36,070
1
5,891.43
5.962
CID
Assoc
04/26/00
5.900
50,000
1
8,194.44
5.982
CID
Assoc
04/26/00
5.900
50,000
1
8,194.44
5.982
CID
Assoc
04/26/00
5.900
50,000
1
8,194.44
5.982
CID
Assoc
04/26/00
5.900
50,000
1
8,194.44
5.982
CID
Heller
04/26/00
6.150
50,000
30
256,250.00
6.267
CID
ConAgra
04/26/00
6.150
10,000
34
58,083.33
6.271
CID
ConAgra
04/26/00
6.150
50,000
34
290,416.67
6.271
FNMA
5.020%
04/26/00
5.016
50,000
366
2,508,482.50
5.017
FNMA
5.020%
04/26/00
5.016
50,000
366
2,508,482.50
5.017
FNMA
5.020%
04/26/00
5.032
50,000
366
2,516,000.00
5.033
PURCHASES
g/
CD
Wachovia
6.070%
06/01/00
6.060
50,000
CD
Wachovia
. 6.070%
06/01 /00
6.060
50,000
PURCHASES
CD
BNParis
6.530%
10/27/00
6.525
50,000
CD
BNParis
6.530%
10/27/00
6.525*
50,000
14
04/26/00 PURCHASES (continued)
CD
RB Canada
6.525% 10/31 /00
6.520
50,000
CD
RB Canada
6.525% 10/31 /00
6.520
50,000
CID
ConAgra
05/08/00
6.140
30,000
CID
ConAgra
05/08/00
6.140
50,000
.CP
NCAT
08/29/00
6.270
50,000
CP
NCAT
08/29/00
6.270
50,000
CID
NCAT
08/29/00
6.270
50,000
CP
NCAT
08/29/00
6.270
50,000
Disc Notes
FHLMC
04/26/01
6.235
14,000
Disc Notes
FHLMC
04/26/01
6.235
50,000
Disc Notes
FHLMC
04/26/01
6.240
30,000
Disc Notes
FHLMC
04/26/01
6.240
50,000
Treas
Bills
03/01/01
5.810
50,000
Treas
Bills
03/01/01
5.810
50,000
Treas
Bills
03/01/01
5.810
50,000
Treas
Bills
03/01/01
5.810
50,000
Treas
Bills
03/01/01
5.812
50,000
Treas
Bills
03/01/01
5.812
50,000
04/27/00 REDEMPTIONS
CD
Bayer Lnds
5.880% 04/27/00
5.870
10,000
77
125,555.43
5.951
CD
Bayer Lnds
5.880% 04/27/00
5.870
50,000
77
627,777.15
5.951
CD
Svenska
5.950% 04/27/00
5.950
50,000
87
718,958.33
6.032
Treas
Bills
04/27/00
4.532
10,000
360
453,250.00
4.826
Treas
Bills
04/27/00
4.532
50,000
360
2,266,250.00
4.826
Treas
Bills
04/27/00
4.532
50,000
360
2,266,250.00
4.826
RRP
Treas
Bills
04/27/00
5.500
10,000
77
(115,991.94)
-5.576
Treas
Bills
04/27/00
5.500.
50,000
77
(579,959.72)
-5.576
Treas
Bills
04/27/00
5.530
50,000
87
(659,391.32)
-5.606
PURCHASES
BA
U/B Calif
10/23/00
6.300
37,894
CD
Fst Union
6.330%
08/01/00
6.330
50,000
CD
UBS
6.560%
10/27/00
6.555
50,000
CD
UBS
6.560%
10/27/00
6.555
50,000
CD
ANZ
6.540%
10/27/00
6.570
40,000
CP
GMAC
06/27/00
6.180
50,000
CID
GMAC
06/27/00
6.180
50,000
CP
GECC
08/01/00
6.240
50,000
CID
GECC
08/01/00
6.240
50,000
CID
GECC
08/01/00
6.240
50,000
CID
GECC
08/01/00
6.240
50,000
CID
Salomon
08/01/00
6.250
50,000
CID
Salomon
08/01/00
6.250
50,000
15
04/27/00 PURCHASES (continued)
CP
GECC
08/07/00
6.240
50,000
CP
GECC
08/07/00
6.240
50,000
CP
GECC
08/14/00
6.240
50,000
CP
GECC
08/14/00
6.240
50,000
CP
GECC
08/29/00
6.240
50,000
CP
GECC
08/29/00
6.240
50,000
CP
GECC
08/29/00
6.240
50,000
CP
GECC
08/29/00
6.240
50,000
CP
GMAC
10/18/00
6.280
50,000
CP
GMAC
10/18/00
6.280
50,000
Disc Notes
FHLB
04/28/00
5.790
50,000
Disc Notes
FHLB
04/28/00
5.790
50,000
Disc Notes
FNMA
07/27/00
6.150
50,000
Disc Notes
FNMA
07/27/00
6.150
50,000
Disc Notes
FNMA
07/27/00
6.150
10,000
Disc Notes
FNMA
10/19/00
6.250
50,000
Disc Notes
FNMA
10/19/00
6.250
50,000
Disc Notes
FNMA
10/26/00
6.255
50,000
Disc Notes
FNMA
10/26/00
6.255
50,000
Disc Notes
FHLB
04/20/01
6.260
50,000
Disc Notes
FHLB
04/20/01
6.260
50,000
Disc Notes
FHLMC
04/26/01
6.300
50,000
Disc Notes
FHLMC
04/26/01
6.300
50,000
Disc Notes
FHLMC
04/26/01
6.300
38,000
PURCHASES -c/
Disc Notes
FHLMC
07/24/00
5.750
50,000
Disc Notes
FHLMC
07/24/00
5.750
50,000
Disc Notes
FHLMC
02/01/01
5.750
50,000
Disc Notes
FHLMC
02/01/01
5.750
50,000
Treas
Bills
10/12/00
5.700
25,000
Treas
Bills
10/12/00
5.700
50,000
Treas
Bills
01 /04/01
5.700
28,180
FHLMC
5.500%
05/15/02
5.750
10,900
FHLMC
5.000%
01/15/04
5.700
8,080
FHLMC
5.000%
01/15/04
5.700
50,000
FHLMC
5.000%
01/15/04
5.700
50,000
04/28/00 REDEMPTIONS
CD
Toronto
5.130% 04/28/00
5.190
5,000
365
262,952.11
5.262
CD
Toronto
5.130% 04/28/00
5.190
50,000
365
2,629,521.13
5.262
CP
Amer Exp
04/28/00
5.970
50,000
14
116,083.33
6.067
CP
Amer Exp
04/28/00
5.970
50,000
14
116,083.33
6.067
Disc Notes
FHLB
04/28/00
5.790
50,000
1
8,041.67
5.871.
Disc Notes
FHLB
04/28/00
5.790
50,000
1
8,041.67
5.871
16
04/28/00 SALES .Q/
Disc Notes
FHLMC
07/24/00
5.750
50,000
1
7,721.85
5.829
Disc Notes
FHLMC
07/24/00
5.750
50,000
1
7,721.85
5.829
Disc Notes
FHLMC
02/01/01
5.750
50,000
1
7,398.89
5.829
Disc Notes
FHLMC
02/01/01
5.750
50,000
1
7,398.89
5.829
Treas
Bills
10/12/00
5.700
25,000
1
3,851.62
5.779
Treas
Bills
10/12/00
5.700
50,000
1
7,702.92
5.779
Treas
Bills
01 /04/61
5.700
28,180
1
4,278.80
5.779
FHLMC
5.500%
05/15/02
5.750
10,900
1
1,702.96
5.829
FHLMC
5.000%
01/15/04
5.700
8,080
1
1,183.38
5.779
FHLMC
5.000%
01/15/04
5.700
50,000
1
7,324.97
5.779
FHLMC
5.000%
01/15/04
5.700
50,000
1
7,324.97
5.779
RRP
Treas
Bills
12/07/00
5.570
50,000 14 (104,135.79) -5.647
Treas
Bills
12/07/00
5.570
50,000 14 (104,135.79) -5.647
PURCHASES
CD
ABN Amro
6.480%
08/29/00
6.470
50,000
CD
ABN Amro
6.480%
08/29/00
6.470
50,000
CD
Fst Union
6.500%
08/29/00
6.500
50,000
CD
Fst Union
6.500%
08/29/00
6.500
50,000
CD
Cr Agric
6.470%
09/01/00
6.470
50,000
CD
Cr Agric
6.470%
09/01/00
6.470
50,000
CD
Cr Agric
6.470%
09/05/00
6.470
50,000
CD
Cr Agric
6.470%
09/05/00
6.470
50,000
CD
RB Canada
6.550%
10/31/00
6.640
41,000
CID
FMCC
06/01/00
6.070
50,000
CID
FMCC
06/01/00
6.070
50,000
CID
FMCC
06/01/00
6.070
50,000
CID
FMCC
06/01/00
6.070
50,000
CID
GECC
06/01/00
6.070
50,000
CID
GECC
06/01/00
6.070
50,000
CID
Heller
06/01/00
6.250
25,000
CID
Heller
06/01/00
6.250
50,000
CID
Enron
06/27/00
6.400
25,000
CP
Enron
06/27/00
6.400
50,000
Disc Notes
FHLB
05/01/00
5.880
50,000
Disc Notes
FHLB
05/01/00
5.880
50,000
Disc Notes
FHLB
05/01/00
5.880
50,000
Disc Notes
FHLB
05/01/00
5.880
50,000
Disc Notes
FNMA
04/23/01
6.320
50,000
Disc Notes
FHLB
04/23/01
6.320
50,000
Disc Notes
FHLMC
04/26/01
6.360
25,000
Disc Notes
FHLMC
04/26/01
6.370
50,000
Disc Notes
FHLMC
04/26/01
6.370
50,000
17
04/30/00 REDEMPTIONS
Treas Notes 5.625% 04/30/00 5.627
NO PURCHASES
18
50,000 709 5,460,767.66
5.628
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes,
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXM,
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (FTC), Corporate Securities (CB), U.S. Ship Financing Bonds
(TITLE XI' S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA) Medium Term Notes (MTN).
b/ Purchase or sale yield based on 360 day calculation for discount
obligations and Repurchase Agreements.
c/ Repurchase Agreement.
d/ Par amount of securites purchased, sold, or redeemed.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
g/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
i/ Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
19
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
AGOURA HILLS
Pacific Crest Bank
02/18/00
5.830
5,000,000.00
06/01/00
Pacific Crest Bank
04/07/00
5.910
8,000,000.00
07/06/00
Pacific Crest Bank
04/17/00
5.870
5,000,000.00
07/17/00
Pacific Crest Bank
10/12/99
5.390
5,000,000.00
10/16/00
Pacific Crest Bank
11/30/99
5.740
-5,000,000.00
12/01/00
Pacific Crest Bank
12/28/99
5.980
5,000,000.00
12/27/00
ALHAMBRA
Grand National Bank
02/07/00
5.650
3,000,000.00
05/08/00
Grand National Bank
03/23/00
5.950
1,000,000.00
06/23/00
Grand National Bank
04/14/00
5.850
2,000,000.00
07/14/00
Grand National Bank
04/21/00
5.820
3,095,000.00
07/20/00
Grand National Bank
03/06/00
6.060
3,000,000.00
09/06/00
Omni Bank
04/25/00
5.790
1,000,000.00
07/24/00
BEVERLY HILLS
City National Bank
05/04/99
4.820
25,000,000.00
05/03/00
City National Bank
07/27/99
5.040
10,000,000.00
07/26/00
City National Bank
09/15/99
5.280
20,000,000.00
09/15/00
City National Bank
03/31/00
6.200
50,000,000.00
09/29/00
City National Bank
10/12/99
5.360
25,000,000.00
10/16/00
City National Bank
02/28/00
6.220
20,0001000.00
02/28/01
CAMERON PARK
Roseville First National Bank
01/24/00
5.850
1,000,000.00
07/24/00
Western Sierra National Bank
11/08/99
5.420
1,000,000.00
05/08/00
Western Sierra National Bank
02/03/00
6.040
3,000,000.00
08/01/00
CHICO
North State National Bank
08/24/99
5.210
11000,000.00
08/24/00
North State National Bank
09/07/99
5.240
500,000.00
09/01/00
North State National Bank
08/30/99
5.160
1,000,000.00
09/01/00
North State National Bank
04/07/00
6.170
1,000,000.00
04/06/01
North State National Bank
04/06/00
6.170
1,000,000.00
04/06/01
Tri Counties Bank
03/09/00
5.880
10,000,000.00
06/07/00
Tri Counties Bank
03/15/00
5.930
10,000,000.00
06/13/00
Tri Counties Bank
03/20/00
5.940
10,000,000.00
06/20/00
Tri Counties Bank
04/10/00
5.940
10,000,000.00
07/10/00
CITY OF INDUSTRY
EverTrust Bank 03/13/00 5.860 1,000,000.00 06/12/00
20
NAME
CITY OF INDUSTRY (continued)
EverTrust Bank
EverTrust Bank
EverTrust Bank
EverTrust Bank
EL CENTRO
Valley Independent Bank
Valley Independent Bank
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
Bank of Lodi
Bank of Lodi
LOS ANGELES
Broadway Federal Bank
Broadway Federal Bank
Broadway Federal Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
03/20/00
5.880
3,000,000.00
06/19/00
03/24/00
5.910
2,000,000.00
06/26/00
01/20/00
5.680
3,000,000.00
07/18/00
01 /20/00
6.050
3,000, 000.00
10/16/00
02/02/00
5.770
15,000,000.00
05/02/00
02/07/00
5.710
3,750,000.00
05/15/00
02/02/00
6.000
5,000,000.00
07/31/00
08/11 /99
5.250
3,750,000.00
08/11 /00
02/16/00 5.650 10,000,000.00 05/17/00
01 /31 /00 5.830 15,000,000.00 07/31 /00
01/19/00 6.160 8,000,000.00 01/19/01
11/18/99
5.500
25,000,000.00
05/18/00
10/21/99
5.290
25,000,000.00
05/25/00
10/28/99
5.450
20,000,000.00
06/22/00
12/22/99
5.920
25,000,000.00
07/06/00
02/24/00
6.040
18,000,000.00
08/10/00
01/27/00
5.930
25,000,000.00
08/17/00
03/02/00
6.110
25,000,000.00
09/14/00
02/03/00
6.120
50,000,000.00
09/14/00
04/13/00
6.100
20,000,000.00
10/05/00
03/09/00
6.190
25,000,000.00
10/12/00
03/30/00
6.320
18,000,000.00
11/09/00
04/27/00
6.150
26,000,000.00
12/07/00
03/23/00 5.960 3,000,000.00 06/22/00
04/10/00 5.940 2,000,000.00 07/10/00
07/01/99 5.200 1,250,000.00 06/30/00
12/28/99 5.790 1,250,000.00 07/07/00
09/29/99 5.230 2,500,000.00 10/02/00
21
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LOS ANGELES (continued)
Cathay Bank
12/20/99
5.850
9,000,000.00
06/19/00
Cathay Bank
03/28/00
5.930
10,000,000.00
06/28/00
Community Bank
06/22/99
5.030
5,000,000.00
06/22/00
Community Bank
08/11/99
5.230
15,000,000.00
08/11/00
Community Bank
10/25/99
5.490
5,000,000.00
10/27/00
Community Bank
12/07/99
5.700
5,000,000.00
12/08/00
Community Bank
12/13/99
5.650
10,000,000.00
12/15/00
Community Bank
01/10/00
6.040
20,000,000.00
01/12/01
General Bank
02/02/00
5.770
15,000,000.00
05/02/00
General Bank
02/14/00
5.690
15,000,000.00
05/15/00
General Bank
02/18/00
5.800
10,000,000.00
06/01/00
General Bank
03/10/00
5.880
25,000,000.00
06/08/00
General Bank
04/25/00
5.820
7,000,000.00
07/24/00
General Bank
04/28/00
5.800
28,000,000.00
08/01/00
Manufacturers Bank
02/07/00
5.680
10,000,000.00
05/08/00
Manufacturers Bank
03/06/00
5.850
10,000,000.00
06/05/00
Manufacturers Bank
03/27/00
5.930
10,000,000.00
06/26/00
Manufacturers Bank
03/13/00
6.110
10,000,000.00
09/11/00
Preferred Bank
02/14/00
5.670
4,000,000.00
05/15/00
Preferred Bank
02/28/00
5.830
2,000,000.00
05/31/00
Preferred Bank
03/02/00
5.810
5,000,000.00
05/31/00
Preferred Bank
03/14/00
5.920
9,000,000.00
06/12/00
Preferred Bank
03/20/00
5.890
9,000,000.00
06/20/00
Preferred Bank
04/03/00
5.910
3,000,000.00
07/03/00
Preferred Bank
04/18/00
5.820
3,000,000.00
07/17/00
Sae Han Bank
04/20/00
6.040
3,000,000.00
10/17/00
State Bank of India
11/19/99
5.600
2,000,000.00
11/30/00
State Bank of India
01/20/00
6.110
2,000,000.00
01/19/01
Wilshire State Bank
08/31/99
5.290
4,000,000.00
08/31/00
Wilshire State Bank
01/12/00
6.090
4,000,000.00
01/12/01
Wilshire State Bank
03/17/00
6.230
4,000,0.00.00
03/19/01
Wilshire State Bank
04/18/00
6.090
5,000,000.00
04/18/01
MERCED
County Bank
04/20/00
5.850
5,000,000.00
07/19/00
County Bank
03/15/00
6.180
5,000,000.00
09/11/00
County Bank
04/20/00
6.050
5,000,000.00
10/17/00
County Bank
03/09/00
6.200
5,000,000.00
03/09/01
MONTEREY PARK
Trust Bank FSB
12/27/99
5.790
2,000,000.00
06/26/00
Trust Bank FSB
03/27/00
6.180
4,000,000.00
10/02/00
22
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
Citizens Business Bank
PALM SPRINGS
Canyon National Bank
PALO ALTO
Bay Area Bank
Cupertino National Bank
Cupertino National Bank
Mid -Peninsula Bank
Mid -Peninsula Bank
Peninsula Bank of Commence
PALOS VERDES ESTATES
Malaga Bank
PICO RIVERA
Pacific West National Bank
PLACERVILLE
El Dorado Savings Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
11 /03/99
5.360
500, 000.00
05/01 /00
01 /31 /00
5.680
1, 000, 000.00
05/01 /00
05/06/99
4.830
500,000.00
05/22/00
03/31/00
5.930
1,000,000.00
06/30/00
11 /03/99
5.390
500, 000.00
07/31 /00
02/04/00
5.830
500,000.00
08/02/00
08/10/99
5.220
500,000.00
08/09/00
09/27/99
5.190
500,000.00
09/29/00
03/24/00
6.230
1,000,000.00
03/23/01
08/23/99
4.970
20,000,000.00
05/25/00
06/16/99
5.150
10,000,000.00
06/15/00
07/07/99
5.100
5,000,000.00
07/06/00
08/10/99
5.220
10,000,000.00
08/09/00
03/22/00
6.180
10,000,000.00
09/18/00
04/06/00
6.160
10,000,000.00
10/05/00
04/06/00
6.160
10,000,000.00
10/05/00
03/08/00
6.240
5,000,000.00
03/08/01
03/17/00 5.920 95,000.00 06/16/00
04/27/00
5.840
5,000,000.00
07/26/00
02/04/00
5.870
10,000,000.00
08/02/00
03/22/00
6.180
10,000,000.00
09/18/00
02/04/00
5.870
15,000,000.00
08/02/00
03/24/00
6.150
10,000,000.00
09/20/00
03/13/00
6.110
15,000,000.00
09/11/00
03/28/00 6.250 6,000,000.00 09/26/00
11 /23/99 5.650 1,000,000.00 11 /30/00
02/08/00 6.230 5,000,000.00 02/08/01
23
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE YIELD
AMOUNT ($)
DATE
PLACERVILLE (continued)
El Dorado Savings Bank
03/22/00 6.250
5,000,000.00
03/22/01
El Dorado Savings Bank
04/13/00 6.150
5,000,000.00
04/13/01
POMONA
PFF Bank and Trust
11/30/99
5.900.
8,000,000.00
12/01/00
PFF Bank and Trust
03/10/00
6.450
10,000,000.00
03/09/01
PETALUMA
Bank of Petaluma
01/24/00
5.840
2,500,000.00
07/24/00
Bank of Petaluma
02/07/00
6.210
1,000,000.00
02/07/01
RE_
North Valley Bank
03/22/00
6.190
3,000,000.00
09/18/00
RICHMOND
Mechanics Bank
05/06/99
4.810
10,000,000.00
05/05/00
Mechanics Bank
06/11/99
5.150
10,000,000.00
06/12/00
Mechanics Bank
08/12/99
5.250
10,000,000.00
08/11/00
Mechanics Bank
10/07/99
5.330
10,000,000.00
10/13/00
Mechanics Bank
03/07/00
6.230
10,000,000.00
03/07/01
Mechanics Bank
04/04/00
6.260
10,000,000.00
04/06/01
Mechanics Bank
04/25/00
6.080
10,000,000.00
04/25/01
SACRAMENTO
American River Bank
12/28/99
5.770
1,000,000.00
06/26/00
American River Bank
03/27/00
6.200
3,000,000.00
09/26/00
American River Bank
04/03/00
6.190
1,000,000.00
10/02/00
American River Bank
12/28/99
5.960
1,000,000.00
12/27/00
Bank of Sacramento
03/03/00
6.290
500,000.00
03/05/01
Bank of Sacramento
02/16/00
6.240
1,000,000.00
02/16/01
Golden One Credit Union
03/24/00
6.180
20,000,000.00
03/23/01
River City Bank
08/18/99
5.210
5,000,000.00
08/18/00
River City Bank
04/10/00
6.170
5,000,000.00
10/06/00
River City Bank
01/31/00
6.140
5,000,000.00
10/27/00
Sanwa Bank of California
07/15/99
5.000
10,000,000.00
07/14/00
Sanwa Bank of California
07/27/99
5.010
5,000,000.00
07/26/00
Sanwa Bank of California
08/16/99
5.190
50,000,000.00
08/15/00
Sanwa Bank of California
08/23/99
5.180
10,000,000.00
08/22/00
Sanwa Bank of California
02/07/00
6.180
7,000,000.00
02/09/01
Union Bank of California
02/01/00
5.660
100,000,000.00
05/02/00
Union Bank of California
02/15/00
5.640
50,000,000.00
05/16/00
24
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
SACRAMENTO (continued)
Union Bank of California
02/23/00
5.810
100,000,000.00
05/23/00
Union Bank of California
03/28/00
6.220
100,000,000.00
09/25/00
Union Bank of California
04/25/00
6.000
50,000,000.00
10/24/00
SALINAS
Community Bk Central California
02/01/00
5.630
10,000,000.00
05/01/00
Community Bk Central California
02/02/00
5.720
10,000,000.00
05/31/00
Community Bk Central California
04/27/00
5.810
12,000,000.00
07/26/00
SAN DIEGO
First United Bank
11 /30/99
5.700
1,500,000.00
12/01 /00
Neighborhood National Bank
02/02/00
6.240
1,000,000.00
02/09/01
San Diego First Bank
06/22/99
5.030
1,500,000.00
06/21/00
San Diego First Bank
08/04/99
5.150
1,000,000.00
08/07/00
SAN FRANCISCO
Bank of Canton California
05/06/99
4.810
5,000,000.00
05/05/00
Bank of Canton California
05/13/99
4.780
5,000,000.00
05/12/00
Bank of Canton California
06/01/99
5.000
5,000,000.00
05/31/00
Bank of Canton California
06/02/99
5.000
5,000,000.00
05/31/00
Bank of Canton California
07/21/99
4.950
5,000,000.00
07/21/00
Bank of Canton California
09/01/99
5.280
5,000,000.00
09/01/00
Bank of Canton California
11/10/99
5.430
15,000,000.00
09/01/00
Bank of Canton California
09/13/99
5.290
5,000,000.00
09/13/00
Bank of Canton California
11/10/99
5.460
10,000,000.00
11/10/00
Bank of the West
01/31/00
5.620
25,000,000.00
05/01/00
Bank of the West
11/02/99
5.340
25,000,000.00
05/05/00
Bank of the West
02/16/00
5.640
25,000,000.00
05/16/00
Bank of the West
02/22/00
5.760
50,000,000.00
05/22/00
Bank of the West
08/27/99
4.960
25,000,000.00
05/25/00
Bank of the West
05/19/99
4.890
30,000,000.00
05/25/00
Bank of the West
05/26/99
4.860
87,000,000.00
05/25/00
Bank of the West
04/04/00
5.920
34,000,000.00
07/03/00
Bank of the West
03/02/00
6.070
50,000,000.00
09/01/00
Bank of the West
04/14/00
6.170
50,000,000.00
04/16/01
Bank*of the West
04/28/00
6.140
51,500,000.00
04/27/01
California Federal Bank
04/17/00
5.840
100,000,000.00
07/17/00
California Federal Bank
01/05/00
6.080
8,000,000.00
01/05/01
Millennium Bank
10/27/99
5.390
2,000,000.00
05/01/00
Millennium Bank
03/03/00
5.840
1,000,000.00
06/01 /00
Millennium Bank
03/03/00
6.090
1,000,000.00
08/30/00
Oceanic Bank
03/07/00
6.230
2,000,000.00
03/15/01
Oceanic Bank
03/15/00
6.210
2,000,000.00
03/15/01
25
NAME
SAN FRANCISCO (continued)
Trans Pacific National Bank
United Commercial 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 LUIS OBISPO
First Bank of San Luis Obispo
First Bank of San Luis Obispo
First Bank of San Luis Obispo
First Bank of San Luis Obispo
First Bank of San Luis Obispo
Mission Community Bank
Mission Community Bank
San Luis Trust Bank
San Luis Trust Bank
SAN MARINO
East West Federal Bank
East West Federal Bank
East West Federal Bank
East West Federal Bank
SAN RAFAEL
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
Westamerica Bank
SANTA BARBARA
FNB of Central California
FNB of Central California
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
03/17/00
6.250
800,000.00
03/19/01
04/27/00
5.100
20,000,000.00
07/26/00
02/11/00
5.690
20,000,000.00
05/11/00
04/03/00
5.930
10,000,000.00
07/07/00
04/05/00
5.900
20,000,000.00
07/07/00
09/03/99
5.310
20,000,000.00
09/01 /00
1.0/07/99
5.360
10,000,000.00
10/13/00
03/20/00
6.240
25,000,000.00
03/20/01
07/12/99 5.010 5,000,000.00 07/11/00
02/04/00.
5.630
3,600,000.00
05/05/00
02/10/00
5.710
2,000,000.00
05/10/00
02/22/00
5.770
2,500,000.00
05/22/00
04/13/00
5.850
1,000,000.00
07/13/00
04/24/00
5.820
1, 000, 000.00
07/24/00
01 /10/00
5.700
1, 000, 000.00
07/10/00
01 /10/00
6.060
500,000.00
01 /12/01
04/12/00
5.880
350,000.00
07/11 /00
01/31/00
5.930
1,000,000.00
08/04/00
01/21/00
5.560
35,000,000.00
05/04/00
02/11/00
5.680
38,000,000.00
05/11/00
04/03/00
5.920
12,000,000.00
07/05/00
04/13/00
5.840
35,000,000.00
08/03/00
02/14/00
5.680
50,000,000.00
05/15/00
03/20/00
5.910
25,000,000.00
06/19/00
04/14/00
5.850
25,000,000.00
07/14/00
01/27/00
5.800
25,000,000.00
07/25/00
01/31/00
5.910
25,000,000.00
07/31 /00
01/31/00
5.910
25,000,000.00
08/07/00
04/18/00
6.080
25,000,000.00
04/18/01
01/10/00
5.690
10,000,000.00
07/10/00
03/31/00
6.080
5,000,000.00
08/07/00
26
NAME
SANTA BARBARA (continued)
FNB of Central California
FNB of Central California
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
Santa Barbara Bank & Trust
SANTA CLARA
Bank of Santa Clara
Bank of Santa Clara
Bank of Santa Clara
SANTA CLARITA
Valencia Bank & Trust
SANTA CRUZ
Coast Commercial Bank
Coast Commercial Bank
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
Washington Mutual Bank
TIME. DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
02/07/00
5.870
5,000,000.00
08/07/00
04/21/00
6.040
10,000,000.00
10/18/00
03/08/00
5.880
10,000,000.00
06/09/00
01/07/00
5.740
5,000,000.00
07/07/00
01/07/00
5.740
5,000,000.00
07/07/00
01/14/00
5.690
5,000,000.00
07/14/00
01/14/00
5.690
5,000,000.00
07/14/00
01/19/00
5.710
10,000,000.00
07/21/00
01 /21 /00
5.900
5, 000, 000.00
08/11 /00
02/11/00
6.030
5,000,000.00
08/11/00
03/03/00
6.070
5,000,000.00
09/08/00
03/17/00
6.170
5,000,000.00
09/08/00
04/17/00
6.100
5,000,000.00
10/10/00
04/07/00
6.160
5,000,000.00
10/10/00
03/17/00 5.900 2,000,000.00 06/15/00
03/17/00 6.170 2,000,000.00 09/13/00
03/17/00 6.230 2,000,000.00 03/19/01
9/23/99 5.28 1,000,000.00 9/22/00
03/13/00 5.870 20,000,000.00 06/12/00
04/21/00 5.810 5,000,000.00 07/20/00
06/22/99 5.100 1,750,000.00 06/30/00
10/01/99 5.150 5,000,000.00 06/30/00
02/15/00
5.680
10,000,000.00
05/16/00
03/15/00
6.260
10,000,000.00
03/15/01
04/13/00
6.200
10,000,000.00
04/13/01
09/17/99
5.260
15,000,000.00
09/15/00
03/21/00
6.160
15,000,000.00
09/15/00
04/21/00
6.030
15,000,000.00
10/27/00
10/13/99
5.370
15,000,000.00
10/27/00
11/08/99
5.420
15,000,000.00
11/13/00
12/20/99
5.940
15,000,000.00
12/28/00
27
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
STOCKTON (continued)
Washington Mutual Bank
01/24/00
6.120
15,000,000.00
01/23/01
Washington Mutual Bank
02/18/00
6.210
15,000,000.00
02/22/01
TORRANCE
China Trust Bank (USA)
02/14/00
5.690
5,000,000.00
05/15/00
China Trust Bank (USA)
03/06/00
5.830
10,000,000.00
06/05/00
China Trust Bank (USA) .
03/09/00
5.880
10,000,000.00
06/07/00
China Trust Bank (USA)
03/17/00
5.900
5,000,000.00
06/16/00
China Trust Bank (USA)
04/04/00
5.930
10,000,000.00
07/07/00
China Trust Bank (USA)
04/24/00
5.820
15,000,000.00
07/24/00
South Bay Bank
11/02/99
5.400
2,000,000.00
05/01/00
South Bay Bank
03/13/00
5.890
2,000,000.00
06/12/00
South Bay Bank
01/31/00
5.880
1,000,000.00
07/31/00
TUSTIN
First Fidelity Thrift & Loan
04/17/00
5.840
5,000,000.00
07/17/00
First Fidelity Thrift & Loan
01/19/00
5.700
5,000,000.00
07/17/00
First Fidelity Thrift & Loan
04/28/00
5.790
4,000,000.00
07/27/00
First Fidelity Investment & Loan
02/11/00
5.680
6,000,000.00
05/11/00
First Fidelity Investment & Loan
03/01/00
6.210
15,000,000.00
03/01/01
Sunwest Bank
01/11/00
5.650
3,500,000.00
07/10/00
Sunwest Bank
01/21/00
5.810
2,500,000.00
07/19/00
Sunwest Bank
01/13/00
5.720
3,300,000.00
07/27/00
Sunwest Bank
01/21/00
5.820
2,500,000.00
07/31/00
Sunwest Bank
03/08/00
6.100
1,000,000.00
09/08/00
WHITTIER
Quaker City Bank
04/04/00
5.930
15,000,000.00
07/03/00
Quaker City Bank
04/12/00
5.880
7,000,600.00
07/1-2/00
Quaker City Bank
04/18/00
6.090
8,000,000.00
04/18/01
TOTAL TIME DEPOSITS AS OF APRIL 30, 2000 3,28199909000.00
28
BANK DEMAND DEPOSITS
APRIL 2000
(s in thousands)
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 2499157
$ 2,140,741
2
498,315
2,140,741
3
9019249
3,0799536
4
1,264,938
3,574,004
5
196269207
3,572,181
6
1,7609276
3,2509291
7
1,813,626
3,583,973
8
1,866,975
3,583,973
9
199209324
315839973
10
2,0669289
39956,537
11
29453,564
490239160
12
2,790,969
4,089,351
13
390269707
3,8249492
14
39414,767
3,938,887
15
3,802,826
3,938,887
16
4,190,886
3,930,117
17
5,584,353
4,174,861
18
69584,416
4,1869699
19
6,824,977
4,158,843
20
7150794"
39367,333
21
897779068
3,833,822
22
109046,693
3,833,822
23
119316,318
3,833,822
24
1395529429
4,0319115
25
15,0489418
1,602,708
26
16,2409849
1,773,125
27
16,840,640
2,301,795
28
1792349061
293739821
29
17,627,482
2,373,821
30
18,020,904
2,376,450
AVERAGE DOLLAR DAYS $326,292,749 a/
a/ The prescribed bank balance for April was $494,187. This consisted of
$162,090 in compensating balances for services, balances for uncollected
funds of $332,097 and a deduction of $6,532 for March delayed deposit
credit.
29
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1610
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on April 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
$ 168,433,000
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
( 1)
04/17/2000
04/21/2000
$
5,046,900,000
(2)
04/24/2000
04/28/2000
$
(535,060,000)
(3)
05/01/2000
05/05/2000
$
304,560,000
(4)
05/08/2000
05/12/2000
$
(28,720,000)
(5)
05/15/2000
05/19/2000
$
462,120,000
(6)
05/22/2000
05/26/2000
$
(437,400,000)
(7)
05/29/2000
06/02/2000
$
(888,800,000)
(8)
06/05/2000
06/09/2000
$
(215,840,000)
(9)
06/12/2000
06/16/2000
$
3,338,740,000
(10)
06/19/2000
06/23/2000
$
2,245,300,000
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
(section 16430)*
and 16602)*
Total
$ 35,691,910,000
$
3,235,990,000
$
38,927,900,000
$ 35,156,850,000
$
3,235,990,000
$
38,392,840,000
$ 35,461,410,000
$
3,235,990,000
$
38,697,400,000
$ 35,432,690,000
$
3,235,990,000
$
38,668,680,000
$ 35,894,810,000
$
3,235,990,000
$
39,130,800,000
$ 35,457,410,000
$
3,235,990,000
$
38,693,400,000
$ 34,568,610,000
$
3,235,990,000
$
37,804,600,000
$ 34,352,770,000
$
3,235,990,000
$
37,588,760,000
$ 37,691,510,000
$
3,235,990,000
$
40,927,500,000
$ 39,936,810,000
$
3,235,990,000
$
43,172,800,000
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 $ 168,433,000.
POOLED MO VE TMENT BOARD:
11141-1--
Chaigi(erson
Member
Dated: April 19, 2000
* Government Code Member
30
INVESTMENT ADVISORY BOARD MEETING
Meeting Date: July 12, 2000
ITEM TITLE
Distribution of Investment Policies
for Fiscal Year 2000/2001
BACKGROUND:
Correspondence and
Written Material: C
On June 20, 2000 the City Council approved the Investment Policies for Fiscal
Year 2000/2001 which are attached.
RECOMMENDATION:
Receive )and File.
Joh M. Falcon6r, Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section
Topic
Page
Executive Summary
2
I
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
5
► Safety
► Liquidity
► Yield
► Diversified Portfolio
V
Prudence
6
VI
Delegation of Authority
6
VII
Conflict of Interest
7
Vill
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
IX
Authorized Investments and Limitations
9
Investment Pools
13
XI
Safekeeping and Custody
13
XII
Interest Earning Distribution Policy
13
XIII
Internal Controls and Independent Auditors
14
XIV
Benchmark
16
XV
Reporting Standards
16
XVI
Investment of Bond Proceeds
16
XVII
Investment Advisory Board - City of La Quinta_
17
XVIII
Investment Policy Adoption
17
Appendices: A. Summary of Authorized Investments and Limitations
18
B. Municipal Code Ordinance 2.70 - Investment Advisory Board
19
C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
20
D. Segregation of Major Investment Responsibilities
22
E. Listing of Approved Financial Institutions
23
F. Broker/Dealer Questionnaire and Certification
24
G. Investment Pool Questionnaire
29
H. Glossary
33
1
City of La Quinta
Investment Policy
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards
users must follow in investing funds of the City of La Quinta.
It is the policy of the City of La Quinta to invest all public funds in a manner which will
provide a diversified portfolio with maximum security while meeting daily cash flow
demands and the highest investment return in conformity to all state and local
statutes. This Policy applies to all cash and investments of the City of La Quinta, La
Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter
referred in this document as the "City".
The primary objectives, in order of priority, of the City of La Quinta's investment
activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
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
timely preparation and accurate reporting of the portfolio financial information. As part
K
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
ed investment vehicles and related maximum portfolio positions
are listed in Appendix A Summary of Authorized Investments and Limitations._ At
leas two bids will be recap fired of investments in the authorized investment vehicles.
Collateral ization 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
Collateralization 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's investment in the State Local Agency Investment
Fund (LAIF) is allowable as long as the average maturity does not exceed two years,
unless specific approval is authorized by the City Council. The City's investment in
Money Market Mutual funds is allowable as long as the average maturity does not
exceed 60 days.
The City of La Quinta. 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
P.O. Box 1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
City of La Quinta
Statement of Investment Policy
July 1, 2000 through June 30, 2001
Adopted by the City Council on June 20, 2000
I GENERAL PURPOSE
(760) 777-7000
(TDD) (760) 777-1227
The general purpose of this document is to provide the rules and standards users
must follow in administering the City of La Quinta cash investments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will
provide a diversified portfolio with safety of principal 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.
III SCOPE
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.
4
The primary objective, in order of priority, of the City of La Quinta's investment
activity shall be:
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio in accordance with
the permitted investments. The objective will be to mitigate credit risk and
interest rate risk.
7
Credit Risk - is the risk of loss due to the failure of the security issuer or
backer. Credit risk may be mitigated by:
IN. Limiting investments to the safest types of securities;
► Pre -qualifying the financial institutions, and broker/dealers, which
the City of La .Quints will do business; and
► Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
FENEEK ■-
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 possible cash demands cannot be
- anticipated the portfolio should be diversified and consist of securities with
active secondary or resale markets.
5
3. Yield
The investment portfolio shall be. designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
account the investment risk constraints and liquidity needs. Return on
investment is of least importance compared to the safety and liquidity objectives
described above. The core of investments are limited to relatively low risk
securities in anticipation of earning a fair return relative to the risk being
assumed. Securities shall not be sold prior to maturity with the following
exceptions:
► A declining credit security could be sold early to minimize loss of
principal;
► Liquidity needs of the portfolio require that the security be sold.
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.
The City shall follow the Uniform Prudent Investor Act as adopted by the State of
California in Probate Code Sections 16045 through 16054..
Section 16053 sets forth the terms of a prudent person which are as follows:
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence excerise in the
professional management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be
derived.
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated
to the City Treasurer, who shall establish written procedures for the operation of the
investment program consistent with the Investment Policy. Procedures should include
reference to safekeeping, wire transfer agreements, banking service contracts, and
collateral/depository agreements. Such procedures shall include explicit delegation of
authority to persons responsible for investment transactions. No person may engage
in an investment transaction except as provided under the terms of this Investment
- Policy and the procedures established by the City Treasurer. The City Treasurer shall
be responsible for all transactions undertaken and shall establish a system of controls
to regulate the activities of subordinate officials. The City Manager or Assistant Citv
Manager shall approve in writing all purchases and sales of investments prior to their
execution by the City Treasurer.
FRINIMOMWWR•
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance of improper influence.
Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall
adhere to the State of California Code of Economic Interest and to the following:
► The City Manager, Assistant City Manager, and the City Treasurer shall not
personally or through a close relative maintain any accounts, interest, or private
dealings with any firm with which the City places investments, with the
- exception of regular savings, checking and money market accounts, or other
similar transactions that are offered on a non-negotiable basis to the general
_ public. Such accounts shall be disclosed annually to the City Clerk in
conjunction with .annual disclosure statements of economic interest.
► . All persons authorized to place or approve investments shall report to the City
Clerk kinship relations with principal employees of firms with which the City
places investments.
The City of La Quinta Investment Policy maintains a listing of financial institutions
which are approved for investment purposes. In addition a list will also be maintained
of approved broker/dealers selected by credit worthiness, who maintain an office in the
State of California.
1. Broker/Dealers who desire to become bidders for investment transactions must
supply the City of La Quinta with the following:
► Current audited financial statements
IN. Proof of National Association of Security Dealers Certification
► Trading resolution
- Proof of California registration
► Resume of Financial broker
7
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy
The City Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm and
individual conducting investment related business.
The City Treasurer will also contact the following agencies during the
verification process:
► National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment services
- will be approved by the City Manager subject to City Council approval. The City
Attorney will perform a legal review of the trading resolution/investment
contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
receive City funds for 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 -shall be 1 10% collateralized
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
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 collateral ization in public monies.
• ;4 4 9110 11 14 ► k-&W-Al ► 112 14 1 11 I k CAN 9 [Q ► RI
The City Treasurer will be permitted to invest in the investments summarized in the
Appendix A.
As provided in Sections 16429.1, 53601, 53601.1, and 53649 of the
Government Code, the State of California limits the investment vehicles
available to local agencies as summarized in the following paragraphs. Section
53601, as now amended, provides that unless Section 53601 specifies a
limitation on an investment's maturity, no investments with maturities
--- exceeding five years shall be made. The City of La Quinta Investment Policy
has specified. that no investment may exceed two years.
-- State Treasurer's Local Agency Investment Fund (LAID - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local government
agencies are each authorized to invest a maximum of $30 million per account
v 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 15 % of the portfolio.
U.S. Government and Related Issues - As authorized in Government Code
-- Sections 53601 (a) through (n) as they pertain to surplus funds, this category
includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or other
indebtedness. The City of La Quinta Investment. Policy does not allow
investments in local and state indebtedness
• U.S. Treasury bills, notes and bonds directly issued 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 backed as to principal and
interest by the full faith and credit of the U.S. Government. Government
National Mortgage Association (GNMA) is such an agency. 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.
9
• U.S. Government instrumentalities and agencies 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 (FHLB), 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 single issuer limit of 25 %
of the portfolio.
• Federal government sponsored enterprises (GSEs) 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' Acce tap races - 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 Bankers' Acceptances with
any one commercial bank. Additionally, the maturity period cannot exceed 270
days; however, Bankers' Acceptances are seldom marketed with maturities in
excess of 180 days. The City of La Quinta Investment Policy does not allow
investment in Bankers' Acceptances.
Commercial Paper - 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's, 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. 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's Investment Policy follows The Government Code with the
following additional limitations: (1) maximum maturity per issue of 90 days and
a (2) maximum of $2 million per issuer.
Negotiable Certificates of Deposit - As authorized in Government Code Section
-- 53601(h), 30% of the portfolio may be invested in negotiable certificates of
deposit issued by commercial banks and savings and loan associations. The
City of La Quinta Investment Policy does not allow investment in Negotiable
Certificates of Deposit.
10
Repurchase and Reverse Repurchase Agreements - As authorized in Government
Code Section 53601(i), these investment vehicles are agreements between the
local agency and seller for the purchase of government securities to be resold
at a specific date and for a specific amount. Repurchase agreements are
generally used for short term investments varying from. one day to two weeks.
There is no legal limitation on the amount of the repurchase agreement.
However, the maturity period cannot exceed one year. The market value of
securities underlying a repurchase agreement shall be at least 102% of the
funds invested and shall be valued at least quarterly. The City of La Quinta
Investment Policy does not allow investment in Repurchase Agreements.
The term "reverse repurchase agreement" means the sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and for a specific
amount. As provided in Government Code Section 53635, reverse repurchase
agreements require the prior approval of the City Council. The City of La Quinta
Investment Policy does not allow investment in Reverse Repurchase
Agreements.
Corporate Notes - As authorized in Government Code 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 a�2 Hies - As authorized in Government Code
Section 53601 (k), local agencies are authorized to invest in shares of
beneficial interest issued by diversified management companies (mutual funds)
in an amount not to exceed 20% of the agency's portfolio. There are a number
of other qualifications and restrictions regarding allowable 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 advisor 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 ($500,000,000). The City of La
Quinta Investment Policy only allows investments in 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 90 days and the City limits such
investments to 20% of the portfolio.
11
Mortgage -Backed Securities - As authorized in Government code Section
53601(n), local agencies may invest in mortgage -backed securities such as
mortgage pass -through securities and collateralized mortgage obligations for a
I aximum period of five years in an amount not to exceed 20% of the agency's
portfolio. Securities eligible for investment shall have a "A" or higher rating.
The City of La Quinta Investment Policy does not allow investment in Mortgage -
Backed Securities.
Financial Futures and Financial ption Contracts - As authorized in Government
Code Section 53601.1, local agencies may invest in financial futures or option
contracts in any of the above investment categories subject to the same overall
portfolio limitations. The City of La Quinta Investment Policy does not allow
investments in financial futures and financial option contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
collateralized from 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.
Collateral ization will be required for Certificates of Deposits in excess of the
FDIC insured amount. The type of collateral is limited to City authorized
investments. 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 Collateralization 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 collateralization of a deposit that is
federally insured.
2. Certificates of Deposit in excess of FDIC Limits.
The amount not federally insured shall be 110% collateralized by
securities or 150% mortgages market value of that amount of invested
funds plus unpaid interest earnings.
The City of La Quinta Investment Policy limits the percentage of Certificates of
Deposit to 60% of the portfolio.
Sweep Accounts - As authorized by the City Council, a U.S. Treasury and/or
U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
12
Derivatives - The City of La Quinta Investment Policy does not allow
investment in derivatives.
►I4 ► 11 d:L6191
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 Investment Pool Questionnaire
to LAIF.
_ Also, prior to opening any new Investment Pool account, which would require City
Council approval, the City Treasurer will require the completion of the Investment Pool
Questionnaire.
The City does not allow investments with any other Investment Pool - County Pools
or Third Party Pools.
XI SAFEKEEPING AND CUSTODY
- 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, broker or dealer. Money
market mutual funds and LAIF shall also operate on a DVP basis to be considered for
investment.
Interest earnings is generated from pooled investments and specific investments.
1. Pooled Investments - It is the general policy of the City to pool all available
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 equal to the total annual bank
service charges as incurred by the general fund for all operating funds as
included in the annual operating budget.
B. Payment to the General Fund of a management fee equal to 5 % of the
annual pooled cash fund investment earnings.
C. Payment to each fund of an amount based on the average computerized
daily cash balance included in the common portfolio for the earning
period.
2. Specific Investments - Specific investments purchased by a fund shall incur all
earnings and expenses to that particular fund.
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
► Safeguard assets;
No. The orderly and efficient conduct of its business, including adherence to
management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and,
► Timely preparation of reliable financial information.
- While no internal control system, however elaborate, can guarantee absolute assurance
that the City's assets are safeguarded, it is the intent of the City's internal control to
provide a reasonable assurance that management of the investment function meets the
City's objectives.
The internal controls shall address the following:
a. Control of collusion. Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record keepina. By
separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction, a separation of
duties is achieved.
C. Custodial safekeeping. Securities purchased from any bank or dealer including
appropriate collateral (as defined by State Law) shall be placed with an
independent third party for custodial safekeeping.
14
d. Avoidance ofph_ysical 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. Develooment of a were 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.
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 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 or change of financial institutions,
custodians, brokers and dealers.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory
Board Provisions.
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
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18
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: (1) 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 or 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 securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide
for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635
of the Government Code, as said sections now read or may hereafter be amended,
from moneys in his custody which are not required for the immediate necessities of
the city and as he may deem wise and expedient, and to sell or exchange for other
eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 §
-- 1 (part), 1982)
3.08.030 Sales of Securities.
— From time to time the city treasurer shall sell the securities in which city moneys
have been invested pursuant to this chapter, so that the proceeds may, as appropriate,
be applied to the purchase for which the original purchase money may have been
designated or placed in the city treasury. (Ord. 2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
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. (Ord. 2 § 1 (part), 1982)
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
_ invested pursuant to this chapter, in any institution or depository authorized by the
terms of any state law, including but not limited to Section 53608 of the Government
Code as it now reads or may hereafter be amended. In accordance with said section,
— the city treasurer shall take from the institution or depository a receipt for the
securities so deposited and shall not be responsible for the securities delivered to and
receipted for by the institution or depository until they are withdrawn therefrom by the
city. treasurer. (Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in
accordance with Section 36523 and 26524 of the Government code and any other
applicable provisions of law. (Ord. 2 § 1 (part), 1982)
21
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function
Develop formal Investment Policy
Recommend modifications to. Investment Policy
Review formal Investment Policy and recommend
City Council action
Adopt formal Investment Policy
Review Financial Institutions & Select Investments
Approve investments
Execute investment transactions
Confirm wires, if applicable
Record investment transactions in City's
accounting records
Investment verification - match broker confirmation
to City investment records
Reconcile investment records
to accounting records and bank statements
to Treasurers Report
of investments
Security of investments at City
Security of investments Outside City
Review internal control procedures
22
Appendix D
Responsibilities
City Treasurer
Investment Advisory Board
City Manager and
City Attorney
City Council
City Treasurer
City Manager or
Assistant City Manager
City Treasurer
City Manager or Accounting
Manager
Accounting Manager
Account Technician
Account Technician
Vault
Third Party Custodian
External Auditor
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services, Los
Angeles, California
2. Custodian Services - Bank of New York, Los Angeles,. Ca I if ornia
3. Deferred Compensation - International City/County Management
Association
Retirement Corporation
4. Broker/Dealer Services - Merrill Lynch, Indian Wells, CA
Morgan Stanley Dean Witter, Los Angeles,
California
Salomon Smith Barney, Newport Beach, CA
5. Government Pool - State of California Local Agency Investment
_ Fund
City of La Quinta Account
La Quinta Redevelopment Agency
6. Bond Trustees - 1991. City Hall Revenue Bonds - 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.
0c]
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: ( ) ( )
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
% CD's
% Mutual Funds
% Agencies (specify) :
24
% Repos
% Reverse Repos
% CMO's
% Derivatives
% Stocks/Equities
% Other (specify):
9. References -- Please identify your most directly comparable public sector
clients in our geographical area.
Entity
Contact
Telephone ( )
Client Since
Entity
Contact _
Telephone
Client Since
10. Have any of your clients ever sustained a loss on a securities transaction arising
from a misunderstanding or misrepresentation of the risk characteristics of the
instrument? If so, explain.
1 1 . Has your firm or your local office ever been subject to a regulatory or state/ federal
agency investigation for alleged improper, fraudulent, disreputable or unfair
activities related to the sale of securities? Have any of your employees been so
investigated? If so,
explain.
12. Has a client ever claimed in writing that y-au were responsible for an
investment loss? Yes No If yes, please provide
action taken
Has a client ever claimed in writing that your firm was responsible for an
investment loss? Yes No If yes, please provide
action taken
P401
Do yQu have any current, or pending complaints that are unreported to the
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, custody and delivery process.
Who audits these fiduciary responsibilities?
Latest Audit Report Date
14. How many and what percentage of your transactions failed.
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits for the
City of La Quinta.
16. Is your firm a member in the S.I.P.C. insurance program. Yes No
If yes, explain primary and excess coverage and carriers.
17. What portfolio information, if any, do you require from your clients?
We, •,
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 prof essionalliability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date.
21.
22.
Please list your NASD Registration Number
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
23. Do you maintain an office in California. Yes No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
• Latest audited financial statements.
• Samples of reports, transaction confirmations and any other
research/publications the City will receive.
• Samples of research reports and/or publications that your firm regularly
provides to clients.
• Complete schedule of fees and charges for various transactions.
***CERTIFICATION***
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 Quinta. All sales personnel will be
routinely informed of the City's investment objectives, horizons, outlooks, strategies and
risk constraints whenever we are so advised by the City. We pledge to exercise due
diligence in informing the City of La Quinta of all foreseeable risks associated with
financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all
background checks.
27
Under penalties of perjury, the responses to this questionnaire are true and accurate to
the best of my knowledge.
Broker
Date_
Sales
Date
Representative
Manager and/or
Title
Managing
Title
Partner*
Appendix G
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the following questions and issues should be considered.
SECURITIES
Government pools may invest in a broader range of securities than your entity invests in.
It is important that you are aware of, and are comfortable with, the securities the pool
_. buys.
1. Does the pool provide a written statement of Investment Policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?.
4. Does the pool contain only the types of securities that are permitted by your
Investment Policy?
INTEREST
Interest is not reported in a standard format, so it is important that you know how
interest is quoted, calculated and distributed so that you can make comparisons with
other investment alternatives.
Interest Calculations
— 1. Does the pool disclose the following about yield calculations:
a. The methodology used to calculate interest? (Simple maturity, yield to maturity,
etc.)
- b. The frequency of interest payments?
c. How interest is paid? (Credited to principal at the end of the month, each quarter;
mailed?)
d. How are gains/losses reported? Factored monthly or only when realized?
M1
REPORTING
1. Is the yield reported to participants of the pool monthly? (If not, how often?)
2. Are expenses of the pool deducted before quoting the yield?
3. Is the yield generally in line with the market yields for securities in which you usually
invest?
4. How often does the pool report, and does that report include the market value of
securities?
SECURITY
The following questions are designed to help you safeguard your funds from loss of
principal and loss of market value.
1. Does the pool disclose safekeeping practices?
2. Is the pool subject to audit by an independent auditor?
3. Is a copy of the audit report available to participants?
4. Who makes the portfolio decisions?
5. How does the manager monitor the credit risk of the securities in the pool?
6. Is the pool monitored by someone on the board of a separate neutral party external
to the investment function to ensure compliance with written policies?
7. Does the pool have specific policies with regards to the various investment vehicles?
a. What are the different investment alternatives?
b. What are the policies for each type of investment?
8. Does the pool mark the portfolio to its market value?
9. Does the pool disclose the following about how portfolio securities are valued:
a. The frequency with which the portfolio securities are valued?
b. The method used to value the portfolio (cost, current value, or some other
method)?
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 permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
11. What are the procedures for making deposits and withdrawals?
a. What is the paperwork required, if any?
b. What is the wiring process?
12. Can an account remain open with a zero balance?
13. Are confirmations sent following each transaction?
STA TEMENTS
It is important for you and the agency's trustee (when applicable), to receive statements
monthly so the pool's records of your activity and holding are reconciled by you and your
trustee.
31
1. Are statements for each account sent to participants?
a. What are the fees?
- b. How often are they passed?
c. How are they paid?
d. Are there additional fees for wiring funds (what is the fee)?
2. Are expenses deducted before quoting the yield?
QUESTIONS TO CONSIDER FOR BOND PROCEEDS
_ It is important to know (1) whether the pool accepts bond proceeds and (2) whether the
pool qualifies with the U.S. Department of the Treasury as an acceptable commingled
fund for arbitrage purposes.
1. Does the pool accept bond proceeds subject to arbitrage rebate?
2. Does the pool provide accounting and investment records suitable for proceeds of
bond issuance subject to arbitrage rebate?
3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have
to be recalculated?
4. Will the pool accept transaction instructions from a trustee?
5. Are you allowed to have separate accounts for each bond issue so that you do not
commingle the interest earnings of funds subject to rebate with funds not subject to
regulations?
32
Appendix H
GLOSSARY
(Adopted from the Municipal Treasurers Association)
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.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR): The official annual report for the City of
La Quinta. It includes five combined statements
for each individual fund and account group
prepared in conformity with GAAP. It also
includes supporting schedules necessary to
demonstrate compliance with finance -related
legal and contractual provisions, extensive
introductory material, and a detailed Statistical
Section.
COUPON: (a) The annual rate of interest that a
bond's issuer promises to pay the bondholder on
the bond's face value. (b) A certificate attached
to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts
as a principal in all transactions, buying and
selling for his own account.
DEBENTURE: A bond secured only by the general
credit of the issuer.
DELIVERY VERSUS PAYMENT: There are
two methods of delivery of securities: delivery
versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities
with an exchange of money for the securities.
Delivery versus receipt is delivery of securities
with an exchange of a signed receipt for the
securities.
DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or
(2) financial contracts based upon notional
33
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.
are issued with maturities of less than one
year and interest is paid at maturity. The
bonds are issued with various maturities and
carry semi-annual coupons. Interest is
calculated on a 360-day, 30-day month basis.
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 coupons. Interest is calculated on
a 360-day, 30 day month basis.
DIVERSIFICATION: Dividing investment funds
4. FFCBs (Federal Farm Credit Bank) - Debt
among a variety of securities offering
instruments used to finance the short and
independent returns.
intermediate term needs of farmers and the
national agricultural industry. They are issued
FEDERAL CREDIT AGENCIES: Agencies of the
monthly with three- and six-month maturities.
Federal government set up to supply credit to
The FFCB issues larger issues (one to ten year)
various classes of institutions and individuals,
on a periodic basis. These issues are highly
e.g., S&L's, small business firms, students,
liquid.
farmers, farm cooperatives, and exporters.
5. FI B (Federal Intermediate Credit bank
1. FNMAs (Federal National Mortgage
Debentures) - Loans to lending institutions
Association) - Used to assist the home
used to finance the short-term and
mortgage market by purchasing mortgages
intermediate needs of farmers, such as
insured by the Federal Housing
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
Administration and the Farmers Home
with a nine -month maturity. Interest is
Administration, as well as those guaranteed by
payable at maturity and is calculated on a
the Veterans Administration. They are issued in
360-day, 30-day month basis.
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
6. FHLMCs (Federal Home Loan Mortgage
monthly.
orporation) - a government sponsored, entity
established in 1970 to provide a secondary
2. FHLBs (Federal Home Loan Bank Notes and
market for conventional home mortgages.
Bonds) - Issued by the Federal Home Loan
Mortgages are purchased solely from the
Bank System to help finance the housing
Federal Home Loan Bank System member
industry. The notes and bonds provide
lending institutions whose deposits are insured
liquidity and home mortgage credit to savings
by agencies of the United States Government.
and loan associations, mutual savings banks,
They are issued for various maturities and in
cooperative banks, insurance companies, and
minimum denominations of $10,000.
mortgage -lending institutions. They are
Principal and Interest is paid monthly.
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
34
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 NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations,
and other institutions. Security holder is protected
by full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA, VA
or FMHM mortgages. The term "passthroughs" is
often used to describe Ginnie Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There
is no minimum investment period and the
minimum transaction is $5,000, in multiples of
$1,000 above that, with a maximum balance of
$30,000,000 for any agency. The City is
restricted to a maximum of ten transactions per
month. It offers high liquidity because deposits
can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
agencies participating on a proportionate share
basis determined by the amounts deposited and
the length of time they are deposited. Interest is
paid quarterly. The State retains an amount for
reasonable costs of making the investments, not
to exceed one -quarter of one percent of the
earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between
the parties to repurchase --reverse repurchase
agreements that establishes each party's rights in
the transactions. A master agreement will often
specify, among other things, the right of the
buyer -lender to liquidate the underlying securities
in the vent of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-
term debt instruments (bills, commercial paper,
banders' acceptances, etc.) are issued and
traded.
OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities
in the open market by the New York Federal
Reserve Bank as directed by the FOMC in order
to influence the volume of money and credit in
the economy. Purchases inject reserves into the
bank system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve's most
important and most flexible monetary policy tool.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer,
including Bond Proceeds.
PRIMARY , DEALER: A group of government
securities dealers who submit daily reports of
market activity an depositions and monthly
financial statements to the Federal Reserve Bank
of New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
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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 segregated for the benefit of the
commission eligible 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 on its. purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT .(RP OR REPO): A
repurchase agreement is a short-term investment
transaction. Banks buy temporarily idle funds
from a customer by selling U.S. Government or
other securities with a contractual agreement to
repurchase the same securities on a future date.
Repurchase agreements are typically for one to
ten days in maturity. The customer receives
interest from the bank. The interest rate reflects
both the prevailing demand for Federal funds and
the maturity of the repo. 'Some banks will
execute repurchase agreements for a minimum of
$100,000 to $500,000, but most banks have a
minimum of $1,000,000.
REVERSE REPURCHASE AGREEMENTS (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them 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 vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors
in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMAS, SLMA, etc.) And Corporations which,
have imbedded options (e.g., call features, step-
up coupons, floating rate coupons, derivative -
based returns) into their debt structure, Their
market performance is impacted by the
fluctuation of interest rates, the volatility of the
imbedded options and shifts in the Shape of the
yield curve.
SURPLUS FUNDS: Section 53601 of the
California Government Code defines surplus
funds as any money not required for immediate
necessities of the local agency.
The City has defined immediate 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.
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UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker -dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY
is the current income yield minus any premium
above par of plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.