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2001 03 14 IABP.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 March 14, 2001 - 5:30 P.M. Board Member Felice will be attending via telecommunications. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on February 14, 2001 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for January 2001 B. Consideration of Fiscal Year 2001 /02 Investment Policies VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report and other selected Financial Data - February 2001 B. Pooled Money Investment Board Reports - December 2000 VII BOARD MEMBER ITEMS Vill ADJOURNMENT INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: March 14, 2001 Transmittal of Treasury Report for January 31, 2001 Attached please find the Treasury Report January 31, 2001 Review, Receive and File the Treasury Report for January 31, 2001 John M. Falconer, Finance Director T to City Council o� rw MEMORANDUM FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for January 31, 2001 DATE: March 5, 2001 Attached is the Treasurer's Report for the month ending January 31, 2001. 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) ($262,127) $10,980,548 $10,718,421 $10,980,548 LAI F $6, 555, 574 (2,809,023) 0 3,746,551 (2,809,023) ! US Treasuries (2) US Gov't Agencies $31,9531489 $17,761,645 71411,000 (8,000,000) 41439 3113681928 (584,561) (2) 57,336 17,818,981 57,336 lCommercial Paper (2) $1,998,522 5,000,000 (2,000,000) (13,744) 4,984,778 2,986,256 Mutual Funds (1) $41251,185 (1,184,160) 3,067,025 (1,184,160) ;Total $62 258 288 1 $23 391 548 $13 993 183 $48 031 $71 704 684 $9 446 396 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and ins in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. the City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. ""'John . Falconer Finance Director/Treasurer Footnote (1) The amount r presents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The amount reported in the other column represents the amortization of premium/discount for the month on US Treasury, Commercial Paper and Agency investments. 1. c O CU d d C) y y N y Z Z Z Z Z Z Z Z W 0 I O ' 7 U (AC a d O U U ,� a c N w 0 0 o o Q 'C' 12 N NIt2 i E CN C O N C O CN N N � CO N O O d w CO V5 C_ C O o, � � a O O C < N a N � a a yy O> t O O o\0� V) O O p� N O O C U-) 0 O .N V) .N i a' O 0) O 0) LL CV E C N °1 E E. C O I o o O O N a � � ow °) ^�i n v u v o N'o c X Z C0ui vN oto < 6 N I 0 a� � rn 0 rn U( c o o m to Co .- co c Z U) OD CO N v N C? 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(p N N .- 00 M w v to (D 11 y�(~O R Co ��rco l_ OOMm, C* ti0to00M 08 O?—M� v06 t0 Of M bow ONtoco �O NNN�M0) M M a) M w Of M t L t00 N Cr) N N I 1�A cc co ON U') M 0 OMON� (D 00 (D LQ N O W N V 0Mv 04 N co 00 1,6 06 CCY)D O(~AN po U) OD T-- qT r 0N � �mN(f) ti M O M O � M Co co U. (O O �- � e- � (O 1A (O (A ,w .-Ntn�� f`OIVIV 0 Go N co lyQg(p' t�Md�Y�� 1n ti O�IAh (D O O r- N M N M M N M M N U V � 1QQD N LL w ITN� N N d N O N yM^^0A Rco co �_M� Ococo O0(D Ot (O O - tO NONN p MNO Ne N vz�N Nj (o �N M N � N M a) 04 N J. .N. (O W.-O R$� MM1n00 a) O(OOM�� C4 f�O�QON OM17.(60co D� O (O+f � co t0 M V NO h M(DOl!)(D IT CD M�N(OOON NMN O � Of (O ~ ANT- � C%J 04 MMOorP N M ti ti v W) IA LL I-�- w OI* (OOONN I�hO_OMV- M rl 1n w ti Co) RHO �!n�uU CDD_(Mn co C14 O N O V O co M.4 � N ((f) N N N 1� N N oo r co N d CD O t� IT in 0 00 h M n� �r-r-�M NM V lA �N N L W E y L 7 1A d i O C L H = N •` 7 a C40 All .0 lQ m (> G to t7f y C x R y lXCQ F- y Oa r y a to N m C U 0 U C ~ O > N u- E C d U_ ca 0. " •Z W LL d C to l0 V R C C •_ d O M x W IV y tm In y N L C > C •� > `R 0. G. � w C C U co a`Ittn � wcnw�cioi°- IV z v w z 0 csi v 18 O N O � w w I SIr- IT O 'V co O N ' LO (D L O IV O O O M ,.: OIcd CITY OF LA QUINTA CITY CITY RDA RDA FA BALANCE SHEET 01/31/01 FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL ASSETS: POOLED CASH (4,388,651.13) 17,790,760.41 (9,940.95) 13,392,168 33 LQRP INVESTMENT IN POOLED CASH 805,000.00 805,000 00 INVESTMENT T-BILL/NOTES & OTHER 46,980,000.00 46,980,000 00 AUTO MALL CASH 2O5,106.79 205.106 79 LQRP CASH 60,988.99 60,988 99 BOND REDEMPTION CASH 115,866.71 1,41134 117,278.05 BOND RESERVE CASH BOND PROJECT CASH 9,763,879.18 618,601.59 10,382 480 77 BOND ESCROW CASH PETTY CASH 1,000.00 1 00000 CASH & INVESTMENT TOTAL 42,797,455.66 28,536,495.29 610.071.98 71,944,022T3 INVESTMENT IN LAND HELD FOR RESALE ACCOUNTS RECEIVABLE 75,140.16 60,900.00 8,010,000.00 8146,040 16 PREMIUM/DISCOUNT ON INVESTMENT (239,377.22) 38.51 (239,338 71) LQRP-ACCOUNTS RECEIVABLE 78,544.48 78,544 48 INTEREST RECEIVABLE LOAN/NOTES RECEIVABLE 2,652,736.49 2,652,736 49 DUE FROM OTHER AGENCIES DUE FROM OTHER AGENCIES - CVAG 651,913.19 651,913 19 CVAG ALLOWANCE (651,913.19) (651,913 19) DUE FROM OTHER GOVERNMENTS DUE FROM OTHER FUNDS 899,449.40 551,629.04 1,451,078 44 DUE FROM RDA 8,497,550.20 8,497,550.20 INTEREST ADVANCE -DUE FROM RDA 2,454,788.78 _2,454.788 78 ADVANCES TO OTHER FUNDS NSF CHECKS RECEIVABLE 9,431.91 9 431 91 ACCRUED REVENUE 833.40 83340 TRAVEL ADVANCES 1,449.00 1,44900 EMPLOYEE ADVANCES PREPAID EXPENSES RECEIVABLE TOTAL 11,698,432.23 3,344,643.41 8,010,038.51 23,053,114.15 WORKER COMPENSATION DEPOSIT 37,637.00 37,637 00 RENT DEPOSITS UTILITY DEPOSITS 75.00 7500 MISC. DEPOSITS 2,100.00 2,10000 DEPOSITS TOTAL 39,812.00 39,812 00 GENERAL FIXED ASSETS 1,386,331.67 15,590,699.00 9,988,279.05 26,965,309 72 ACCUMULATED DEPRECIATION (812,743.27) (812,743.27) AMOUNT AVAILABLE TO RETIRE L!f DEBT 3,395,117.03 3,395,117 03 AMOUNT TO BE PROVIDED FOR L!f DEBT 1,645,647.34 95,134,550.00 8,010,000.00 104.790,197,34 TOTAL OTHER ASSETS 573,588.40 15,590,699.00 1,645,647.34 9,988,279.05 98,529,667.03 8,010,000,00 134,337,880.82 TOTAL ASSETS 55 109 288.29 15 590 699.00 1,645,647.34 31 881 138.70 9,988,279.05 98,529,667.03 8 620 110 49 8,010,000.00 229,374,829 90 LIABILITIES: ACCOUNTS PAYABLE 7,660.84 7,66084 DUE TO OTHER AGENCIES 872,718.50 872,718 50 DUE TO OTHER FUNDS 114,523.21 1,327,250.23 9,305.00 1.451,078 44 INTEREST ADVANCE -DUE TO CITY ACCRUED EXPENSES 6.029.10 6,029 10 PAYROLL LIABILITIES 3,487.46 3,48746 STRONG MOTION INSTRUMENTS 3,809.91 3,809.91 FRINGE TOED LIZARD FEES 29,661.50 29.661.50 SUSPENSE 8,260.49 8.260, 49 DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 1,046,151.01 1,327,250.23 9,305.00 2.382.706.24 ENGINEERING TRUST DEPOSITS SO. COAST AIR QUALITY DEPOSITS ARTS IN PUBLIC PLACES DEPOSITS 407,284.23 407,284 23 LQRP DEPOSITS 15,434.00 15,434 00 DEVELOPER DEPOSITS 1,063,118.19 1,063,118 19 MISC. DEPOSITS 448,663.41 448,663 41 AGENCY FUND DEPOSITS 1,875,129.95 1,875,129 95 TOTAL DEPOSITS 3,794,195.78 15,434.00 3,809,629 78 DEFERRED REVENUE 8,270.67 8,010,000.00 8,018,270.67 OTHER LIABILITIES TOTAL COMPENSATED ABSENCES PAYABLE DUE TO THE CITY OF LA QUINTA DUE TO COUNTY OF RIVERSIDE DUE TO C.V. UNIFIED SCHOOL DIST. DUE TO DESERT SANDS SCHOOL DIST. BONDS PAYABLE TOTAL LONG TERM DEBT TOTAL LIABILITIES EQUITY -FUND BALANCE 8,270.67 8,010,000.00 8,018,270.67 321,991.94 321,991.94 1,323,655.40 10,952, 342.78 12, 275, 998.18 12,249,102.00 12,249,102.00 9,418,222.25 9,418,222,25 65,910,000.00 8,010,000.00 73,920,000 00 1,645,647.34 98,529,667.03 8,010,000.00 108,185,314 37 4,848,617.46 1,645,647.34 1,342,684.23 98,529,667.03 8,019,305.00 8,010,000.00 122,395,92106 50,260,670.83 15,590,699.00 30,538,454.47 9,988,279.05 600,805.49 106,978,908.84 TOTAL LIABILITY & EQUITY 55,109,288.29 15,590,699.00 1,645,647.34 31,881,138.70 9,988,279.05 98 529,667.03 8,620,110.49 8,010,000.00 229,374,829 90 CASH & INVESTMENT TOTAL 71,944,022.93 PREMIUM/DISCOUNT ON INVESTMENT (239,338,711 TOTAL 71,704,084.22 v � I.CO..„m�4'�i ti OF Tl� CITY OF LA QUINTA, CALIFORNIA AFFIDAVIT OF POSTING State of California ) County of Riverside) ss City of La Quinta ) I, June S. Greek, City Clerk of the City of La Quinta California, do hereby certify that I caused to be posted a Notice of Adjournment of the La Quinta Investment Advisory Board, from the regular meeting of March 14, 2001; that the members present authorized adjournment of said meeting to March 21, 2001 at the hour of 6:00 p.m. in the Finance Conference Room of the Civic Center, 78-495 Calle Tampico, La Quinta, CA 92253. The attached notice was posted at the La Quinta Civic Center, 78-495 Calle Tampico, La Quinta, CA 92253 on Thursday, March 15, 2001 within 24 hours of said adjournment. I declare under penalty of perjury that the foregoing is true and correct. Dated at La Quinta, California this 15th day of March, 2001 Jun eek, CMC City Clerk, City of La Quinta, California -L P.O. Box 1504 78-495 CALLS TAMPICO (760) 7 7 7 - 7 0 0 0 LA QUINTA, CALIFORNIA 92253 (TDD) (760) 777-1227 NOTICE OF ADJOURNMENT Notice is hereby given that the Investment Advisory Board of the City of La Quinta at their regular meeting of March 14, 2001, adjourned said meeting due to lack of a quorum to the hour of 6:00 p.m. on March 21, 2001, in the Finance Conference Room at the La Quinta Civic Center, 79-495 Calle Tampico, CA. Date 3 I s 2 Jo h Falconer, Finance Director 4ting Secretary INVESTMENT ADVISORY BOARD Business Session No. B Meeting Date: March 14, 2001 Consideration of Fiscal Year 2001 /02 Investment Policies Pursuant to State Legislation the City investment policies must 'be approved on an annual basis by the City Council. This approval is done in June of each year. Staff has attached a Summary of the Calendar Year 2000 Legislation that must be incorporated into the City Investment Policy. In addition, the Board may want to consider the following items based upon prior discussions: Percentage of Government Sponsored Enterprises (GSE's) Percentage of U.S. Treasury Issues Type of Money Market Sweep Account Continued review of the Investment policies for approval by City Council in June 2001. John M. Falcon#r, Finance Director STATE OF CALIFORNIA �h z Philip Angelides , State Treasurer and Chair CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION 915 CAPITOL MALL, ROOM 400 P.O. BOX 942809 SACRAMENTO, CA 94209-0001 TELEPHONE: (916) 653-3269 FAX: (916) 654-7440_—_- "`� r February 23, 2001 Mr. John Falconer a FEB 2 6 2001 Finance Director City of La Quinta t _ P. O. Box 1504 La Quinta, CA 92253 Dear Mr. Falconer: With the passage of Chapter 687, Statutes of 2000 (AB 943, Dutra), effective January 1, 2001, cities and counties are now required to forward copies of their second and fourth quarter calendar year investment portfolio reports and copies of their investment policies to the California Debt and Investment Advisory Commission (CDIAC). These reports and policies, which are currently prepared in compliance with Government Code Section 53646, will provide CDIAC additional opportunities to examine public investment practices on a more consistent basis than before. This information will augment CDIAC's research in municipal finance and its educational programs and services. I am using this notice to provide a timetable and contact information that will help you meet the requirements of AB 943. Cities and counties have 60 days following the close of the quarter to provide CDIAC with their second and fourth quarter investment portfolio reports. For calendar year 2001, cities and counties should provide second quarter reports to CDIAC by the end of August 2001 and their fourth quarter reports by the end of February 2002. As a way to avoid additional costs, the reports should be identical to the reports submitted by city or county officials to their legislative body. Cities and counties are to submit copies of their investment policies each calendar year and within 60 days of any subsequent amendment to the policies. The first policies must be sent to CDIAC no later than December 31, 2001. Again, city and county officials should submit identical copies of the policies submitted to their legislative bodies. The portfolio reports and the investment policies can be sent to CDIAC by mail, postage prepaid, or by electronic mail. Any reports provided to CDIAC by electronic mail must generate an identical copy when downloaded and printed by CDIAC as that provided by city or county staff to their legislative body. If the reports are sent by e-mail, please address them to ringenito@treasurer.ca.gov. If surface mail is used, please address the reports and policies to: California Debt and Investment Advisory Commission Attention: Robert Ingenito 915 Capitol Mall, Room 400 Sacramento, CA 95814 I look forward to working with you to make this process of value. In the meantime, thank you for your cooperation in our effort to serve you. Should you have questions, please give Robert a call at (916) 653-3269. Sincerely, istin Szaka y-Moore Acting Executive Director 11 ;,Committees you have any questions, contact Robert at the _ above address, or call him at (916) 653 3..69. j 80CAT N `.Jessica Batanich, CCMT \ \� � Z AB2708: Deposits San Jose. CA This legislation places a restriction on local Tel: 14081277-5 FAX t4081277-3723720 ;, - agency deposits, by limiting "eligible � = �� � 1 Jessica.batinich@ci.si.ca.us y 1 institutions" to those receiving an overall CRA Y Y 1 1 — rating of at least "satisfactory." The appropriate LESlsunoN Michael Reynolds, CCM ` sentence from Section 3 of Government Code Redlands, CA Section 53635 reads: "To be eligible to receive `Tel: (909) 798-7544 1 • o local agency money, a bank, savings 4ax (909) 798-7670 �-M.,Mttolds@eee.org association, federal association, or federally NEW LEGISLATION AFFECTING LOCAL insured industrial loan company shall have sIrESn=1N GOVERNMENT INVESTMENTS received an overall rating of not less than :Adair Most, CCMT VVctorville, CA Effective January 1, 2001 `satisfactory' in its most recent evaluation by ITol:.(7601955-5060 i ABS43: Submission of Investment the appropriate federal financial supervisorial Fdx (760) 245-6646 Policies and Quarterly Investment agency of its record of meeting the credit needs amost@ci.victorville.ca.us - Reports to COIAC of California's communities, including '30nFICATION Beginning January 1, 2001, all cities and low -and -moderate -income neighborhoods, ;Judith Oltman, CCMT counties (NOT special districts) must mail a pursuant to Section 2 of Title 12 of the P ',Homet, CA ;.Tel: (909) 765-2317 co of their second and fourth quarter PY q B2220: Maximum United States Cod0ankers 2fax t9091765-2337 investment reports to the California Debt and Maturity Periods for Acceptances and )0bnan@ci.hemet.ca.us Investment Advisory Commission within 60 Commercial paper i:,MEMBERSIUP/BUD6ET days of the close of that quarter. A copy of your This bill, sponsored by the City of Palm Sed TreasurerP agency's investment policy must be sent "no Y Desert, revises the maximum maturity period later than 60 days after the close of the quarter of for purchases of bankers acceptances by local *NEWSLW WPUOUC REUITIONS each calendar year." Current thought is that the agencies from 270 to 180 days, and revises the Vice President above sentence was meant to say `...close of the Y maximum maturity period for purchases of 'Bee c ' . second quarter....' So, your first investment eligible commercial paper from 180 days to 270 i fiNI NUB/V4AWS See Past -President report and a copy of your investment policy, as days. While ,. - of June 30, 2001, will be due by August 29, the current limits were appropriate V: LEAGUE LWSON 2001. In addition, an updated copy of your when the legislature set the standards in 1974 Fr4n Medema investment policy must be sent within 60 days and 1978, they were inconsistent with current ,Sacramento, CA of any subsequent amendment to the policy. rket offerings. :Tel; (916)658-821 Fax: (9161658-8240 This bill would exempt a city or county from the B 1493: Guidelines for Distribution of me_demaf@cacities.org reporting requirement if the agency certifies Investment Earnings from County Pools r that it maintains 100% of its portfolio in the This bill allows a county treasurer, when CONu�ESCuu' AssoCtATE t t1AISON . Local Agency Investment Fund, the county apportioning investment income from a pool, to PP g P �,Leslio G. Wells treasury of the county in which the agency is use the cash method, accrual method, or any Las Angeles, CA located, insured credit union accounts, in other method in accordance with generally tTel; (213) 236-7070 t Or (800)358-8771 accounts insured or guaranteed pursuant to accepted accounting principles. It requires a P g P P q Fax: (213) 236-4105 Section 14858 of the Financial Code, in FDIC county treasurer to, at least quarterly, apportion '.leslia.wells@uboc.com insured accounts in a bank or savings and loan investment income in an amount proportionate - soYERNNIENTAssoC. LAisoN association, or a combination thereof. to the average daily balance of the amount Patricia A. Elliott These reports and policies should be deposited b the local agency and to the total P Y g Y 'Perris, CA addressed to: average daily balance of deposits in the Tel;•1909) 928-3777 X 6154 Fax: (909) 928-6114 California Debt and Investment Advisory investment pool. It also requires the county elbottp@emwd.org Commission treasurer to notify the local agencies of any Attn: Robert Ingenito proposed changes in the accounting method at '2O01 CONFERENCE CHAIR Nancy Corona 915 Capital Mall, Room 400 least 30 days prior to the date on which the Riverside, CA Sacramento, CA 95814 ro osed Chan a is to take effect. P P g Tal:I9091826-5660 Fax: (909) 782-5683 Make a notation on the outside of the neorona@ci.riverside.ca.us tw�,. ; .. . envelope that it contains reports and policies. If CMTA Dollars & Sense V� INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: March 14, 2001 01"" Month End Cash Report - February 2001 and Other selected Financial Data 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. Information item only. John M. Falcondr, Finance Director K a� O C O O LL a) W n MO Lo Oj U-) Mr-cc)OI���COO• U)(0OO t OOO.LONOODLnNO .- cS NON Lf) 00 0 N 00 Mr, -7. �� M ONtOn����NCN 00 O O Ln O CI! 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C •• N L L c N +-' cmiEQS C C �0 �, S :(D am^: ma0 3 M N y O itO m l0 U U) a) L -0 a C �UEo (`v a, Ern(o N C 7 N XCVY C al LL Q C O L (n U >, O L O `� a) L y 3 `a) m 0oaaaai •C r U -0 1 C U tT 0 a) U a) m O V � .O. N to C (p qM A dol. ar!§�, F - `` PMIA/LAIF Investment "= Portfolio tk The CMTA Board of Directors had discussed the potential use of LAIF funds in support of the State Treasurers "Double Bottom '• Line Program" at the September Board meeting. This topic was also discussed at the LAIF Conti renc•e. The following is reprinted with permission from the LAIF newsletter and explains the State Treasurer's position. The Investment Policy for the Pooled Money Investment Account (PMIA)/Local Agency Investment Fund (LAIF) governs the *. broader goals of the Portfolio. The Policy rarely changes, however, the investment strategies of the Portfolio shift overtime, dictated by various —Continued on page 5 �lly,�•u� PMIA/LAIF Investment Portfolio.... —continued from page 1 market dynamics. Some LAIF participants have inquired about the increased percentage allocations of certain asset classes within the Portfolio, such as the Time Deposit Program. The Time Deposit, Small Business Administration Loan and Collateralized Mortgage Obligation Programs offer prudent investment opportunities to the Portfolio, while also meeting some of the State Treasurer's program goals of helping local under -served communities. These three programs are highlighted below: The Time Deposit Program places collateralized deposits in community banks in California, which helps to stimulate growth in our local communities. These Time Deposits, in turn, provide a safe return to the portfolio above treasury rates. Each Time Deposit is reviewed and must meet specific credit requirements. Consideration is given to Community Reinvestment Act ratings, however, they also must meet our credit requirements. As required by law, all deposits over $100,000 are adequately collateralized at 11,0% or higher with appropriate securities. The Time Deposit Program balance on 8/31/00 was $3.868 billion or about 9.5% of the Time Deposit asset class. In the early years of the LAIF this percentage reached as high as 23%. The Small Business Administration (SBA) Loan Program purchases California -only securitized small business loans, concentrating on low -to -moderate income areas. These loans are fully guaranteed by the United States Government and provide a yield pickup to short-term treasuries. ,V1d;1nn!illv . the cminnns are' arlin�trr1 quarterly, which provides price stability. The SBA Program was $314 million or slightly less than 1 % of the Portfolio on 8.3/00, which is under the Agency Notes asset class. The Collateralized Mortgage Obligation (CMO) Program purchases mortgage -backed bonds that are separated into different maturity classes called tranches. This Program is a significant piece of the PMIA/LAIF Mortgage (MBS) and Federal Home Loan Mortgage Corporation (FHLMC) asset classes. The underlying mortgages in this Program are California -only loans with a significant majority of those loans representing low and moderate -income neighborhoods. Additionally, these CMO bonds are ensured as to the timely payment of principal and interest by either FHLMC or Federal National Mortgage Association (FNMA). While these securities are less liquid than treasuries, they meet the Portfolio's five-year average life criteria and provide attractive yield spreads to treasuries. We typically receive —120 to 130 basis points over the treasuries, depending upon the yield curve. The CMO Program on 8/31/00 was $423 million or 1 % of the Portfolio. Over the years, there have been various dedicated mortgage programs in the Portfolio. Questions regarding this information may be directed to William Sherwood or Daniel Dowell at (916) 653-3147. FRB: H.15--Selected Interested Rate ... b-Only Daily Update-- March 2, 2001 http://www.federalreserve.gov/Releases/H 15/update Federal Reserve Statistical Release H.15 Selected Interest Rates Release Date: March 2, 2001 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 CDs (secondary market) 3 7 1-month 3-month 6-month Eurodollar deposits (London) 3 8 1-month 3-month 6-month Bank prime loan 2 3 9 Discount window borrowing 2 10 U.S. Government securities Treasury bills (secondary market) 3 4 3-month 6-month 1-year Treasury constant maturities 11 3-month For immediate release March 2, 2001 Mon Tue Wed Thu Feb 26 Feb 27 Feb 28 Mar 1 5.55 5.49 5.59 5.59 5.24 5.19 5.14 5.23 5.13 5.03 4.99 5.06 5.02 4.95 4.87 4.95 5.26 5.18 5.11 5.29 5.15 5.08 5.00 5.05 5.15 5.00 4.91 4.93 5.31 5.21 5.20 5.26 5.10 5.01 5.01 5.02 4.95 4.85 4.87 4.88 5.25 5.18 5.13 5.25 5.09 5.02 4.97 5.04 4.94 4.84 4.82 4.89 8.50 8.50 8.50 8.50 5.00 5.00 5.00 5.00 4.71 4.70 4.73 4.72 4.50 4.47 4.53 4.51 4.35 4.27 4.27 4.25 4.81 4.82 4.85 4.84 1 of 3 03/05/2001 8:49 AN FRB: H. 15 --Selected Interested Rate ... b-Only Daily Update-- March 2, 2001 http://www.federaireserve.gov/Releases/H 15/update 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year 30-year Interest rate swaps 12 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa Baa State & local bonds 13 Conventional mortgages 14 4.69 4.64 4.70 4.68 4.48 4.47 4.47 4.45 4.46 4.44 4.41 4.41 4.54 4.51 4.48 4.48 4.81 4.75 4.70 4.67 5.05 4.97 4.93 4.88 5.05 4.96 4.92 4.87 5.62 5.51 5.51 5.45 5.45 5.34 5.34 5.29 4.97 4.89 4.94 4.91 5.15 5.06 5.08 5.05 5.36 5.25 5.27 5.22 5.53 5.40 5.41 5.35 5.66 5.52 5.51 5.46 5.86 5.70 5.69 5.62 6.07 5.87 5.84 5.76 _ 6.36 6.20 6.17 6.07 7.09 6.98 6.97 6.93 7.94 7.82 7.80 7.75 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. An average of dealer offering rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. 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. 10. Rate for the Federal Reserve Bank of New York. 11. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 12. International Swaps and Derivatives Association (ISDA) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. by Garban Intercapital plc and published on Reuters Page ISDAFIXI. Source: Reuters Limited. 13. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 2 of 3 03/05/2001 8:49 AM FRB: H.l5--Selected Interested Rate ... b-Only Daily Update-- March 2, 2001 http://www.federalreserve.gov/Releases/H 151updatc 14. 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: March 2, 2001 G5 3 of 3 03/05/2001 8:49 AN FRB:Commercial Paper Rates and Outstandings http://www.federaireserve.gov/Relcases,'CP Federal Reserve Release Commercial Paper Release I About I Outstandincs I Historical discount rates I Historical outstandings Data as of March 2, 2001 volume Commercial Paper Rates and Outstandings statistics Derived from data supplied by The Depository Trust Company 2000: 4 Posted March 5, 2001 Discount rates I Term AA financial AA nonfinancial A2/P2 nonfinancial 1-day ' r 5.515.50 ; 6.08 3 7-day 5.46 5.47 6.00 15-day ' 5.46 1 5.42 1 5.97 30-day 5.24 5.21 1 5.93 60-day 1 5.02 I 5.02 5.90 90-day 4.95 1 4.90 j 5.88 Yield curve Money market basis Percent 6.2 6.0 5.8 5.6 5.4 5.2 5.0 4.8 1 7 15 W so 90 Da ys to Mat u rity Financial — — — NonfinanewI ••.•• A2/P2 Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) 01 MAY98 17 NOV98 05J U N99 22❑ EC99 09J U LO0 -- — A2/P2 spread, 5-day mov ing ave rage 25JAN 01 Basis points 150 140 130 120 110 100 90 so 70 60 50 40 30 20 10 1-TAU GO 9 1 of 3 03/05/2001 8:48 AM FRB:Commercial Paper Rates and Outstandings Discount rate history Thirty -day commercial paper (daily) 1 1 � t 1 r 1 +r 4+t.� •..1�1a� i no 1 1 1 1 /ti ti V so# 01 MAY98 17 NCV98 05J U N99 22D EC99 09J U L00 Financial — — — Nonfinancial ••••• A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars 1- YJCJ 1100 1 OD IJ 2U AN01 http://www.federalreserve.gov/Releases,'Cil Percent � 8 NA 6 5 4 13a.0 G01 Billions of dollars 360 350 34-0 .30 �20 310 .300 290 280 270 260 250 p 240 22a 210 01 MAY98 17 NOV98 05J U N 9g 22❑ EC99 09J U L00 25JAN01 13AU G01 Financial — — — Nonfinancial 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. 1() 2 of 3 03/05/2001 8:48 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases/CI' Commercial paper outstanding Commercial paper outstanding,, miscellaneous categories Release I About I OutstandiM ( Historical discount rates I Historical outstandings Home I Statistical releases To comment on this site, please fill out our feedback form. Last update: March 5, 2001 11 3 of 3 03/05/2001 8:48 AN: LAIF Performance Report httpJ/www.treasurer.ca.gov/laifiperfomiance.litr Philip Angelides, State Treasurer Insidelhe State Treasurer's Office Local Agency Investment Fund LAIF Performance Report Reporting Date: Effective Date: Quarter Yield: Daily: Year: Life: Quarter Ending 12/31/00 Apportionment Rate: Earnings Ratio: Fair Value Factor: Monthly Average For February: 02/28/01 02/28/01 6.27% 6.07% 6.44% 194 6.52% .00017854626707555 1.012836187 6.169% 12 1 of 2 03/05/2001 8:50 AM LAIF Performance Report http://www.treasurer.ca.gov/laif/perfomiailcc.htr Corr - --`- Bi 5 Commercial Paper 25.51 % Pooled Money Investment Account Portfolio Composition* $48.2 Billion 01131/01 Loans Reverses 6.22% -0-51% Treasuries 12.59% CD's/BN's 12.31 % e Deposits 9.19% Mortgages 0.02% lcies ?1% ■Treasuries ❑ Time Deposits ■ Mortgages ❑ Agencies ■ CD's/BN's ❑ Bankers Acceptances ■ Repo ■ Commercial Paper ❑ Corporate Bonds ❑ Loans ■ Reverses "The PMIA portfolio does not hold any securities of PG&E or Southern California Edison. Home Back 13 2 of 2 03/05/2001 8:50 AN City of La Quinta Spread between 30 Day Al P1 Commercial Paper and 30 Day T-Note Date T-Bill T-Bill C/P Variance 11 /13/00 12/14/00 6.03% 6.47% 0.44% 11/20/00. 12/21/00 6.43% 6.49% 0.06% T-Bill Rate appeared unusually high 11 /27/00 12/28/00 6.28% 6.49% 0.21 % 12/04/00 01 /04/01 6.13% 6.50% 0.37% 12/11 /00 01 /11 /01 5.92% 6.40% 0.48% 12/18/00 01 /18/01 5.86% 6.54% 0.68% 1 /02/01 02/01 /01 5.76% 6.36% 0.60% 1/08/01 02/08/01 5.13% 5.77% 0.64% 1 /16/01 02/15/01 5.23% 5.78% 0.55% 1/23/01 02/22/01 5.11 % 5.67% 0.56% 1 /29/01 3/01 /01 5.06% 5.54% 0.48% 2/05/01 3/08/01 4.95% 5.45% 0.50% 2/12/01 3/15/01 4.99% 5.42% 0.43% 2/20/01 3/22/01 4.76% 5.47% 0:71 % 2/27/01 3/29/01 4.84% 5.44% 0.60% 3/05/01 4/05/01 4.96% 5.24% 0.28% 14 Go C IT m O O O O O O O O O O O O O O O > co � I N N N 04 Or- O(�DG~ON� O M0 C-4 COM 'O O tr ' M GO ch O CO � ~ O O> m� �MtiCC M O"IL Nt ticcoGN 1 W) e- LO N CV e- CO Lr CD N N N C C 0 cc C C� `o3E m 0 .> -p a X U p ►- a) m U U p p� CL a) a) m C O fA n a m e -v m N U N _ m m m > NL m `Z-Z U ff'fl C N N N C (`II p m C 'a 0 a) Z (C 0 �O +m Z o N N 'a m m co m E65 co ^ ^ C4 Go N Go 0 co C� .0tip ~ r-Ma)(G '.' C� OnM � NOO O� DMco � CA . M H O Or- N~ n .-- ...... N N M Cn _ CD NN I� �rnrn�� MGON MI (Q o �F-rZ ! co �� O Q j (� Nc llct 'cr � N to G0 O N rl-Cq et (n O co N M.- ' h eM N MVcn OWN Yl +1 ,Oct O Lnil- c7 (Dcot- cc N ti co I) C U') 0 Ich� Om� O(p coNGO O 000C4 � T30 coLci�C7G0 0,�0W) C7 CD(O"Zf ti0 N NONGocc CO CI m �MM~O it (�'�GOGO �O e- .- N CN (D Lei N L O 7 O L H N U) m IL � H C � C U C a) a) V m m U C tod 0 CL x H a) c y CL ui Tn c aim ~� m i d o r C d C a) P P_ '05m v (D a) 5� W d CL C N d nO 'm M.0,U X m 0 o Q `Om m. - w 0 W m W(n w000I- Z I O O O O O O O O CIO fl.000000000 ` 0 0 0 0 0 C O. a) W) CD N p M 0 p p (j 'O � O N O p to U i O jCN - N� ce)ON C O E a) a� o rn co :3 co W cc WwCL rnU m U 0 :3 Ix w> . m a� > W QWY O CO m - y ,6 � 0 a) Qwwz c�z� C d) J Z W Z U m U 5 m J N t Z Q�-� J Q m m x r- W Z— 0 0 D 0 D wo OEOUMMUM 15 CITY OF LA QUINTA Investment Policy Table of Contents Section Tom 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 VIl Conflict of Interest 7 Vlll 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 2 of the annual audit of the City of La Quinta's financial statements the independent auditor reviews the adequacy of those controls and comments if weaknesses are found. Investment responsibilities carry added duties of insuring that investments are made without improper influence or the appearance to a reasonable person of questionable or improper influence. The City of La Quinta Investment Policy maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions selected by the Treasurer to provide investment services will be approved by the City Manager subject to City Council approval. - - The Treasurer will be permitted to invest only in City approved investments up to the maximum allowable percentages and, where applicable, through the bid process requirements. _Authorized investment vehicles and related maximum portfolio positions are listed in Appendix A - Summary of Authorized Investments and Limitations At least two bids will be required of investments in the authorized investment vehicles. 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 City of La Quinta Statement of Investment Policy July 1, 2000 through June 30, 2001 Adopted -by the City Council on June 20, 2000 The general purpose of this document is to provide the rules and standards users must follow in administering the City of La Quinta cash investments. It is the policy of the City of La Quinta to invest public funds in a manner which will provide a diversified portfolio with safety of principal as the primary objective while meeting daily cash flow demands with the highest investment return. In addition, the Investment Policy will conform to all State and local statutes governing the investment of public funds. This Investment Policy applies to all cash and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing Authority, hereafter referred in this document as the "City". These funds are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include: All funds within the following fund types: 10General Special Revenue Capital Projects ► Debt Service ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. The primary objective, in order of priority, of the City of La Quinta's investment activity shall be: 1. Safety Safety of principal is the foremost objective of the investment program. Investments of the City of La Quinta shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio in accordance with the permitted investments. The objective will be to mitigate credit risk and interest rate risk. Credit Risk - is the risk of loss due to the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to the safest types of securities; ► Pre -qualifying the financial institutions, and broker/dealers, which the City of La Quinta will do business; and ► Diversifying the investment portfolio so that potential losses on individual securities will be minimized. Interest Rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Interest rate risk may -be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► By investing operating funds primarily in shorter -term securities. 2. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that 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. * ► 991 WAIJ■ 6 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 0 in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or Assistant City Manager shall aoorove in writing all purchases and sales of investments prior to their execution by the City Treasurer. 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 ► 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 I✓- ospectus 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. BlEff-AlurOTOONloll ► 11 14 ► 1 &Vil ► 1914 1 ►1 I I ril► 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 (LAIR - 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 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 'lot 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. • 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. ' - As authorized in Government i sue. Bankers Acceptances t Code Section 53601 (f), 40% of the portfolio may be invested in Bankers' Acceptances, although no r G, 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 Dept - 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 Companies - 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 maximum period of five years in an amount not to exceed 20% of the agency's portfolio. Securities eligible for investment shall have a "A" or higher rating. The City of La Quinta Investment Policy does not allow investment in Mortgage - Backed Securities. Financial Futures and Financial Option Contracts - As authorized in Government Code Section 53601.1, local agencies may invest in financial futures or option contracts in any of the above investment categories subject to the same overall portfolio limitations. The City of La Quinta Investment Policy does not allow investments in financial futures and financial option contracts. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 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 collateral ization 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. 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. • 10 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; ► 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 keep* g. 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. iv, d. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. e. Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Majair Investment Responsibilities appendices. f. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. g. Development of a wire transfer agreement with the City's bank and third pa�rty. 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 1 r 9 09 11 _ : I ► The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles commensurate with the investment risk constraints and the cash flow needs of the City. Return on investment is of least importance compared to safety and liquidity objectives. The City of La Quinta Investment Policy will use the six month U.S. Treasury Bill as a benchmark when measuring the performance of the investment portfolio. SB564 section 3 requires a quarterly report to the Legislative Body of Investment activities. The City of La Quinta Investment Advisory Board has elected to report the investment activities to the City Council on a monthly basis through the Treasurers Report. The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. The Treasurers Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by City Treasurer; ► A listing of Purchases and sales/maturities of investments; ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity; ► Comparison of month end actual holdings to Investment Policy limitations; ► Current year and prior year monthly history of cash and investments for trend analysis; ► Balance Sheet; ► Distribution of cash and investment balances by fund; ► A comparison of actual and surplus funds; ► A year to date historical cash flow analysis and projection for the next six months. 1 II ► • :90 1 1J ';• 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 Appendix A E E 9 4 0 C.s C M �a E A v gs a $ N c w c16 LD N= 5 E � g s E w a a V V c N C U $ w c wp w % . >..g L uwo Y 44 7 w� Zw � o`- A c � A v N A yCE� W N w w Ora L_ J.,C V u Y CF V N C TI jp N t C O B o v m u R g c a� w e aLL ff N E w ri _ > > d � c >+c uo AE aw �gN c$ a Mgt a w IL w !V PI ♦ 1A IO s fD 01 4, Q _ r p a � O 1s'��'�x �2s L V � w a Y Y IA 2-„ u Z N N Y C Y M15 c Y W 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 § 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 Appendix D SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Develop formal Investment Policy Responsibilities City Treasurer Recommend modifications to Investment Policy Investment Advisory Board Review formal Investment Policy and recommend City Manager and City Council action City Attorney Adopt formal Investment Policy City Council Review Financial Institutions & Select Investments City Treasurer Approve investments City Manager or Assistant City Manager Execute investment transactions City Treasurer Confirm wires, if applicable City Manager or Accounting Manager Record investment transactions in City's accounting records Accounting Manager Investment verification - match broker confirmation to City investment records Account Technician Reconcile investment records - to accounting records and bank statements - to Treasurers Report of investments Account Technician Security of investments at City Vault Security of investments Outside City Third Party Custodian Review internal control procedures External Auditor 22 Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services - Wells Fargo Bank, Government Services, Los Angeles, California 2. Custodian Services - Bank of New York, Los Angeles, California 3. Deferred Compensation - International City/County Management Association Retirement Corporation _ 4. Broker/Dealer Services - Merrill Lynch, 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. p4c3 BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm: 2. Address: 0 3 Telephone: ( ) Broker's Representative to the City (attach resume): Name: Title: Telephone: ( ) Appendix F 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. 11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you 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 25 Do y-Qu 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? 26 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance. Yes No If yes, please provide the insurance carrier, limits and expiration date. 21. Please list your NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California. Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: • Latest audited financial statements. • Samples of reports, transaction confirmations and any other research/publications the City will receive. • Samples of research reports and/or publications that your firm regularly provides to clients. • Complete schedule of fees and charges for various transactions. 'CERTIFICATION' *CERTIFICATION I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La 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 mate ity? 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? 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? SECURI T Y 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) ? 30 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. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 1. FNMAs (Federal National Mortgage Association) - Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued in various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes 34 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 calcurated on a 360-day, 30 day month basis. 4. FFCBs (Federal Farm Credit BanL - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. 5. FICBs (Federal Intermediate Credit bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360-day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and Interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBAs), Government National Mortgage Association notes (GNMAs), Tennessee Valley Authority notes (TVAs), and Student Loan Association notes (SALLIE-MAEs). FEDERAL 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. 36 QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has 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. 37 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. INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: March 14, 2001 TITLE: Month End Cash Report - February 2001 and Other selected Financial Data 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. Information item only. JOn M. Falcondr, Finance Director 3 m O C O O LL () a) U) coMN .-. � M 0 0) Ln N CD N Ln MOO (Cp(D O� ti 00 (D r +4� LLo(O0OC pj N t M r- 00 Ln - UjOOt,)LLON000U)N0 H� NNpN O N 00jti000)ln(q r-t. CA w a t-- OO°0 6 O M N ti 00 r,: N0t`ONO N � .- N N c0 Ln to Ln Ln Nl~ (D O d' Lf f` 'V U M000C3(D O00 r-OLn �000O)(Occ� M N M 0 LO I It EO �� O P- CD O � U)OOIncn LnNCO0)NN �tiCCLCD I)(D� M > (D (D (DCO0 1- (D 06 0) (D 0 0 O N 0 C � ! NLnI�NN9 N co N p co O O O C14 p w O � VN � (C O O O O O O N L n r- 00 +�N N N om((DD U IT O N ti r t` r v rn 3 � co coo c co U- W w (D co co co 7 Q m m O O 0 pO N=0 O 0 O O 0 3QLO � V) � 0 2 C 00 0 co 1` OD 1` M O N N 000 co 000 O (D dD O O O to (D (D co ° O OD N O O O (c ti � NL U)C6, 0 00 0 LLO 0 O N N M M C7 M M (M ° �CM N .-. N M(DN� 0 u- U� 00OO r N O 0)0 N ~ S O N Ln C M � M �UC'I � ((n ti v N N f0 ►O- O 0000 4D N U) O U tU0 (� N O N O al ' N C N U Qco N V N rx C y m Yj C O (p a d N L .r - , U C co N O O p d d j M _ N N .0 N (a O i C a a a a) 0 7 N 0. U O N M a om o��-L5 a a Q w nna(n0Zan La M tiC CDC) O fw co Ln O ccpp 8R Lo 0 � O (D 10` ti 0 O) p 0 (p (D p (Yi �- 00 co a aN) m (D N N �► N O s co m E `. E aaicm a) E2 Ln °0— E Lu, � s 'a Ln oe �v L L a) f- °� U �, m a) M mO. O M C) (a w t -f°o F- a) m w E a co M 0— O UO C N co a E Z,NN C- o O. C .Q a) a •- v_� a N a Ln O O la N r- Q � �'` (D w •� V •C N .00 a) C O ENE O ,- a) O N C C O aE O p y- C O Q N p 0 M C O U 7 N ° L C N •- O a)w_CDm m O a O W a) (Q a • 7 j d 0 O L) F- a) V U a-c n o.9 a U- w a0e U)C, +LL �LCC L °C N M t Q L) .m ~ E Q O.L O Z Q N CCL CD N > a) N m L N m 0 U C C U d C L >+ C Lo L • m O F- N W N N 1 t-°0 m �to CD "C U d `Lvo Oa aMg E- a CL ma= 0 %=� CD �N (CL)no�rn r- fn U)°'a O > C C O C N U L U c m E a -- m E w o 0) U) +' V E Q = C C ° N Ea) (A E E a �d tD C Q N w C ° E tom 0 M (� W L_ N a ``. `• � U;0U ac L C aMN N o " N C m Q � CL x 0. aYf ) O Vo c° N >• CL cn a) 0 w O a) p C O U ca O_ a) a) E C N i O C w 0 N a C W �a O ° a) V° Cn Pn�`' W U N M O U P-a cn M9D qM rA d I la PMIA/LAIF Investment y Portfolio The CMTA Board of Directors had _ discussed the potential use of LAIF funds in support of the State — Treasurer's "Double Bottom Line Program" at the September Board meeting. This topic was also discussed at the LAIF ConA renc•e. The following is reprinted with permission from the LAIF newsletter and explains the State Treasurer's position. The Investment Policy for the Pooled Money Investment Account (PMIA)/Local Agency Investment Fund (LAIF) governs the broader goals of the Portfolio. The Policy rarely changes, however, the investment strategies of the Portfolio shift over time, dictated by various —Continued on page 5 `r t' 1i1I11lliyulLL� Wood,� PMIA/LAIF Investment Portfolio.... --continued from page 1 market dynamics. Some LAIF participants have inquired about the increased percentage allocations of certain asset classes within the Portfolio, such as the Time Deposit Program. The Time Deposit, Small Business Administration Loan and Collateralized Mortgage Obligation Programs offer prudent investment opportunities to the Portfolio, while also meeting some of the State Treasurer's program goals of helping local under -served communities. These three programs are highlighted below: The Time Deposit Program places collateralized deposits in community banks in California, which helps to stimulate growth in our local communities. These Time Deposits, in turn, provide a safe return to the portfolio above treasury rates. Each Time Deposit is reviewed and must meet specific credit requirements. Consideration is given to Community Reinvestment Act ratings, however, they also must meet our credit requirements. As required by law, all deposits over $100,000 are adequately collateralized at 11.0% or higher with appropriate securities. The Time Deposit Program balance on 8/31/00-was $3.868 billion or about 9.5% of the Time Deposit asset class. In the early years of the LAIF this percentage reached as high as 23%. The Small Business Administration (SBA) Loan Program purchases California -only securitized small business loans, concentrating on low -to -moderate income areas. These loans are fully guaranteed by the United States Government and provide a yield pickup to , short-term treasuries. ,Ndd;tionaliv. the coupons are• ,idiii�t-d quarterly, which provides price stability. The SBA Program was $314 million or slightly less than 1% of the Portfolio on 8.3/00, which is under the Agency Notes asset class. The Collateralized Mortgage Obligation (CMO) Program purchases mortgage -backed bonds that are separated into different maturity classes called tranches. This Program is a significant piece of the PMIA/LAIF Mortgage (MBS) and Federal Home Loan Mortgage Corporation (FHLMC) asset classes. The underlying mortgages in this Program are California -only loans with a significant majority of those loans representing low and moderate -income neighborhoods. Additionally, these CMO bonds are ensured as to the timely payment of principal and interest by either FHLMC or Federal National Mortgage Association (FNMA). While these securities are less liquid than treasuries, they meet the Portfolio's five-year average life criteria and provide attractive yield spreads to treasuries. We typically receive —120 to 130 basis points over the treasuries, depending upon the yield curve. The CMO Program on 8/31/00 was $423 million or 1 % of the Portfolio. Over the years, there have been various dedicated mortgage programs in the Portfolio. Questions regarding this information may be directed to William Sherwood or Daniel Dowell at (916) 653-3147. FRB: H.15--Selected Interested Rate ... b-Only Daily Update- March 2, 2001 http://www.federaireserve.gov/Releases/H 15/update Federal Reserve Statistical Release H.15 Selected Interest Rates Release Date: March 2, 2001 H.15: Release ( Release dates I About I ASCII ( 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 CDs (secondary market) 3 7 1-month 3-month 6-month Eurodollar deposits (London) 3 8 1-month 3-month 6-month Barrk prime loan 2 3 9 Discount window borrowing 2 10 U.S. Government securities Treasury bills (secondary market) 3 4 3-month 6-month 1-year Treasury constant maturities 11 3-month For immediate release March 2, 2001 Mon Tue Wed Thu Feb 26 Feb 27 Feb 28 Mar 1 5.55 5.49 5.59 5.59 5.24 5.19 5.14 5.23 5.13 5.03 4.99 5.06 5.02 4.95 4.87 4.95 5.26 5.18 5.11 5.29 5.15 5.08 5.00 5.05 5.15 5.00 4.91 4.93 5.31 5.21 5.20 5.26 5.10 5.01 5.01 5.02 4.95 4.85 4.87 4.88 5.25 5.18 5.13 5.25 5.09 5.02 4.97 5.04 4.94 4.84 4.82 4.89 8.50 8.50 8.50 8.50 5.00 5.00 5.00 5.00 4.71 4.70 4.73 4.72 4.50 4.47 4.53 4.51 4.35 4.27 4.27 4.25 4.81 4.82 4.85 4.84 1 of 3 03/05/2001 8:49 AM FRB: H.15--Selected Interested Rate ... b-Only Daily Update-- March 2, 2001 http://www.federaireserve.gov/Releases/H 15iupdate 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year 30-year Interest rate swaps 12 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa Baa State & local bonds 13 Conventional mortgages 14 4.69 4.64 4.70 4.68 4.48 4.47 4.47 4.45 4.46 4.44 4.41 4.41 4.54 4.51 4.48 4.48 4.81 4.75 4.70 4.67 5.05 4.97 4.93 4.88 5.05 4.96 4.92 4.87 5.62 5.51 5.51 5.45 5.45 5.34 5.34 5.29 4.97 4.89 4.94 4.91 5.15 5.06 5.08 5.05 5.36 5.25 5.27 5.22 5.53 5.40 5.41 5.35 5.66 5.52 5.51 5.46 5.86 5.70 5.69 5.62 6.07 5.87 5.84 5.76 _ 6.36 6.20 6.17 6.07 7.09 6.98 6.97 6.93 7.94 7.82 7.80 7.75 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. An average of dealer offering rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. 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. 10. Rate for the Federal Reserve Bank of New York. 11. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Treasury. 12. International Swaps and Derivatives Association (ISDA) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. by Garban Intercapital plc and published on Reuters Page ISDAFIXI. Source: Reuters Limited. 13. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17 2 of 3 03/05/2001 8:49 AM FRB: H.15--Selected Interested Rate...b-Only Daily Update-- March 2, 2001 http://www.federalreserve.gov/Releases/H 15/update, 14. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. DESCRIPTION OF THE TREASURY CONSTANT KATURITY 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. 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Last update: March 2, 2001 1� 3 of 3 03/05/2001 8:49 AM FRB:Commercial Paper Rates and Outstandings http://www.federaireserve.gov/Releases/"CP Federal Reserve Release Commercial Paper Release I About I OutstandiM I Historical discount rates I Historical outstandines Data as of March 2, 2001 volume Commercial Paper Rates and Outstandings Statistics p 2000:04 Derived from data supplied by The Depository Trust Company j Posted March 5, 2001 Discount rates Term AA financial AA nonfinancial A2/P2 nonfinancial 1-day 5.51 5.50 6.08 7-da y 5.46 47 i 6.00 15-day ` 5.46 5.42 1 5.97 30-day 5.24 5:21 5.93 60-day 5.02 I 5.02 I 5.90 i 90-day 4.95 4.90 5.88 Yield curve Money market basis Percent 6.2 6.0 5.8 5.6 5.4 5.2 5.0 4.8 1 7 15 3D 8D 90 Days to went u Rry Finnnc'on I---Nonfinc new I ••••• A2/P2 Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) 01 MAY98 17 NOV98 051 U N99 22D EC99 09J U LJ0 25JAN 01 -- — A2/P2 spread, 5—day wooing average Basis points 1510 140 130 120 110 100 90 80 70 60 50 40 30 20 10 13AU CAD 1 9 1 of 3 03/05/2001 8:48 AM FR&Commercial Paper Rates and Outstandings Discount rate history Thirty -day commercial paper (daily) A No.# we%y •r �V 01 MAY98 17NOV98 05JUN99 220EC99 09JUL00 _ F na neio l — — — Nonf ine neia I A2/P2 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars i .YJ"D 1ZO 0 1100 1 IYZI0 251 AN01 http://www.federalreserve.gov/Releases/CP Percent 8 7 6 5 _ 1—%U G01 Billions of dollars 360 �0 34-0 33;0 �20 300 290 280 270 260 250 240 220 210 �00 01 MAY98 17 NOV98 05J U N 99 220 EC99 09J U L00 25JAN01 13AU G01 Fina ncia I — — — Nonfina nc a 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. 10 2 of 3 03/05/2001 8:48 AM FRB:Commercial Paper Rates and Outstandings http://www.federalreserve.gov/Releases,CII Commercial paper outstanding Commercial paper outstanding, miscellaneous categories Release ( About I Outstandings ( Historical discount rates I Historical outstandinQs Home I Statistical releases To comment on this site, please fill out our feedback form. Last update: March 5, 2001 11 3 of 3 03/05/2001 8:48 AM LAIF Performance Report http: /www.treasurer.ca.go�,,/Iaif/perfomiance.htn Philip Angelides, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund LAIF Performance Report Reporting Date: Effective Date: Quarter Yield: Daily: Year: Life. - Quarter Ending 12/31/00 Apportionment Rate: Earnings Ratio: Fair Value Factor: Monthly Average For February: 02/28/01 02/28/01 6.27% 6.07% 6.44% 194 6.52% .00017854626707555 1.012836187 6.169% .12 l of 2 03/05/2001 8:50 AM LAIF Performance Report http://www.treasurer.ca.gov/laif/performance.litm Corporate Bonds 5.46% Commercial Paper 25.51 % Pooled Money Investment Account Portfolio Composition* $48.2 Billion 01/31/01 Loans Reverses 6 22% -0.51% Treasuries 12.59% CD's/BN's 12.31% e Deposits 9.19% Mortgages 0.02% lcies ?1% ■Treasuries ❑ Time Deposits ■ Mortgages ❑ Agencies ■ CD's/BN's ❑Bankers Acceptances ■ Repo ■ Commercial Paper ❑ Corporate Bonds ❑ Loans ■ Reverses "The PMIA portfolio does not hold any securities of PG&E or Southern California Edison. Home I ck 13 2 of 2 03/05/2001 8:50 AM City of La Quinta Spread between 30 Day Al P1 Commercial Paper and 30 Day T-Note Date T-Bill T-Bill C/P Variance 11 /13/00 12/14/00 6.03% 6.47% 0.44% 11 /20/00 12/21 /00 6.43% 6.49% 0.06% T-Bill Rate appeared unusually high 11 /27/00 12/28/00 6.28% 6.49% 0.21 % 12/04/00 01 /04/01 6.13% 6.50% 0.37% 12/11 /00 01 /11 /01 5.92% 6.40% 0.48% 12/18/00 01 /18/01 5.86% 6.54% 0.68% 1 /02/01 02/01 /01 5.76% 6.36% 0.60% 1 /08/01 02/08/01 5.13% 5.77% 0.64% 1 /16/01 02/15/01 5.23% 5.78% 0.55% 1 /23/01 02/22/01 5.11 % 5.67% 0.56% 1 /29/01 3/01 /01 5.06% 5.54% 0.48% - 2/05/01 3/08/01 4.95% 5.45% 0.50% 2/12/01 3115/01 4.99% 5.42% 0.43% 2/20/01 3/22/01 4.76% 5.47% 0.71 % 2/27/01 3/29/01 4.84% 5.44% 0.60% 3/05/01 4/05/01 4.96% 5.24% 0.28% 14 INVESTMENT ADVISORY BOARD Meeting Date: March 14, 2001 Pooled Money Investment Board Report for December 2000 Correspondence & Written Material Item B The Pooled Money Investment Board Report for December 2000 is included in the agenda packet. Receive & File ohn M. Falcojer, Finance Director STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT DECEMBER 2000 TABLE OF CONTENTS SUMMARY...........................................................................1 SELECTED INVESTMENT DATA.............................................2 PORTFOLIO COMPOSITION...................................................3 INVESTMENT TRANSACTIONS...............................................4 TIMEDEPOSITS..................................................................21 BANK DEMAND DEPOSITS...................................................35 POOLED MONEY INVESTMENT BOARD DESIGNATION .......... 36 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF DECEMBER 2000 WITH DECEMBER 1999 (DOLLARS IN THOUSANDS) DECEMBER 200011 DECEMBER 199911 CHANGE Average Daily Portfolio $ 40,825,322 $ 31,504,253 +9,321,069 Accrued Earnings $ 226,605 $ 150,469 +76,136 Effective Yield 6.535 5.639 +.896 I Average Life -Month End (In Days) 189 194 -5 1 Total Security Transactions Amount $ 24,808,298 $ 20,822,046 +3,986,252 Number 541 464 +77 Total Time Deposit Transactions Amount $ 19015,095 $ 460,595 +554,500 Number 110 60 +50 Average Workday Investment Activity $ 1,291,170 $ 925,332 +365,838 Prescribed Demand Account Balances For Services $ 174,833 $ 191,483 -16,650 For Uncollected Funds $ 222,653 $ 192,580 +30,073 1 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) DECEMBER 31, 2000 PERCENTAGE CHANGE FROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills 2,651,583 6.09 -.85 Bonds 0 0.00 -0.00 Notes 299729517 6.83 -.43 Strips 0 0.00 0.00 Total Government 5,624,100 12.92 -1.28 Federal Agency Coupons 3,151,997 7.24 -.90 Certificates of Deposit 4,954,995 11.38 -1.94 Bank Notes 1,645,023 3.78 +.50 Bankers' Acceptances 0 0.00 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 9,262,669 21.27 -1.49 Time Deposits 4,340,845 9.97 -.31 GNMAs 1,174 0.00 0.00 Commercial Paper 9,748,129 22.39 +6.53 FHLMC 119393 0.03 0.00 Corporate Bonds 2,643,159 6.06 -.24 Pooled Loans 2,938,795 6.75 -.99 GF Loans 0 0.00 0.00 Reversed Repurchases (779,021) (1.79) -.12 Total (All Types) 4395439258 100.00 INVESTMENT ACTIVITY - DECEMBER 2000 NOVEMBER 2000 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 541 24,808,298 429 $ 20,046,098 Other 51 1979520 40 261,411 Time Deposits 110 1,015,095 100 1,415,000 Totals 702 26,0209913 569 $ 21,7229509 PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month 6.535 6.506 2 6.538 6.501 Pooled Money Investment Account 12/31/00 Portfolio Composition $43.5 Billion Reverses Loans -1.79% . 6.75% Corporate Bonds 6.06% ,c _titi,ti „titi .titititi•.nrt Commercial Paper CD's/BN's 15.16% Treasuries 12.92% 3 Time Deposits k 9.97% Mortgages 0.03% Agencies 28.51 % ERTreasuries 6 Time Deposits 0 Mortgages ® Agencies ■ CD's/BN's 0 Bankers Acceptances ■ Repo 0 Commercial Paper 0 Corporate Bonds 0 Loans 0 Reverses POOLED MC)NEY"INVESTMEN'f'ACCaUNT"' 1% MATURITY. TRANS PAR DAYS AMOUNT EFFECTIVE DESCRIPTION ..QAI� HFLQ .._ : EAI&NED y YIELD �AIE YIELD S4Q4] _ . _ . _ . _... __.._. __._. _.. _ .. .. _.... _... 12/01/00 RRS Treas Bills 08/30/01 6.200 $50,000 Treas Bills 08/30/01 6.200 50,000 Treas Bills 08/30/01 6.200 50,000 Treas Bills 08/30/01 6.200 50,000 REDEMPTIONS CD Montreal 6.550% 12/01/00 6.550 50,000 72 $655,000.00 6.640 CD Montreal 6.550% 12/01/00 6.550 50,000 72 655,000.00 6.640 CP AT&T 12/01/00 6.570 35,190 15 96,332.63- 6.679 CP AT&T 12/01/00 6.570 50,000 15 136,875.00 6.679 CP GMAC 12/01/00 6.480 50,000 15 135,000.00 6.587 CP GMAC 12/01/00 6.480 50,000 15 135,000.00 6.587 CP FMCC 12/01/00 6.480 50,000 24 216,000.00 6.498 CP FMCC 12/01/00 6.480 50,000 24 216,000.00 6.498 CP FMCC 12/01/00 6.480 50,000 39 351,000.00 6.616 CP FMCC 12/01/00 6.480 50,000 39 351,000.00 6.616 CP Salomon 12/01/00 6.480 25,000 43 193,500.00 6.621 CP NCAT 12/01/00 6.480 50,000 43 387,000.00 6.621 CP NCAT 12/01/00 6.480 50,000 43 387,000.00 6.621 CP NCAT 12/01/00 6.460 50,000 45 403,750.00 6.603 CP NCAT 12/01/00 6.460 50,000 45 403,750.00 6.603 CP Amer Exp 12/01/00 6.460 50,000 45 403,750.00 6.603 CP Amer Exp 12/01/00 6.460 50,000 45 403,750.00 6.603 CP Heller 12/01/00 6.580 50,000 45 411,250.00 6.726 CP SRAC 12/01/00 6.740 50,000 46 430,611.11 6.892 CP Salomon 12/01/00 6.480 50,000 72 648,000.00 6.656 CP Salomon 12/01/00 6.480 50,000• 72 648,000.00 6.656 CP Salomon 12/01/00 6.480 50,000 72 648,000.00 6.656 Disc Notes - FHLB 12/01/00 5.865 50,000 332 2,704,416.67 6.286 FHLB 5.850% 12/01/00 5.980 50,000 366 2,986,981.15 5.989 FHLB 5.965% 12/01/00 6.010 50,000 366 3,004,000.00 6.019 FHLB 5.965% 12/01/00 6.010 50,000 366 3,004,000.00 6.019 FNMA" 5.900% 12/01/00 6.100 50,000 366 3,045,750.00 6.109 PURCHASES y/ CP Salomon 12/21/00 6.480 41,991 CP Salomon 12/21/00 6.480 50,000 CP Salomon 12/21/00 6.480 50,000 CP Salomon 12/21/00 6.480 50,000 PURCHASES CP Enron 12/04/00 6.720 10,000 CP Enron 12/04/00 6.720 50,000 4 _.�.._._...... , �,.�. .— ,..__..� :.. �..,,,,.,.._ . _ _..�-:• ,. --- ..' -Z a 77 ---- POOLED MONEY INVESTMENT ACCOUNT �.�.- �. .D: �;.� !=c:..:. •:w53� Y J' ''� .✓ y r -� ✓f °,�•rr �+ i . >i .�'r`% � h s, ,� R . .,.. i. .i,,..� .. %. lR.,� ,} 1 •., s ""° IR..w ,F,y,, �. .-.. .a % nk ".'6 H MATU DAYS AMOUNT EFFECTIVE i •, , . ` ... , F ., . , .. �. ,. , . •. 4 " �;.' TRANS. PAR DESCRIPTION DATE YIELD ice_._ _.... HELD E&B�EQ YIELD 12/04/00 RRS Treas Notes 5.250% 01 /31 /01 6.200 50,000 Treas Notes 5.250% 01 /31 /01 6.200 50,000 REDEMPTIONS CP Enron 12/04/00 6.720 10,000 3 5,600.00 6.817 CP Enron 12/04/00 6.720 50,000 3 28,000.00 6.817 CP FMCC 12/04/00 6.490 50,000 5 45,069.44 6.586 CP FMCC 12/04/00 6.490 50,000 5 45,069.44 6.586 CP AT&T 12/04/00 6.640 41,000 13 98,308.89 _ 6.748 CP AT&T 12/04/00 6.640 50,000 13 119,888.89 6.748 CP -FMCC 12/04/00 6.490 15,000 14 37,858.33 6.596 CP FMCC 12/04/00 6.490 25,000 14 63,097.22 6.596 CP AT&T 12/04/00 6.620 45,000 14 115,850.00 6.729 CP AT&T 12/04/00 6.620 50,000 14 128,722.22 6.729 CP FMCC 12/04/00 6.490 50,000 14 126,194.44 6.596 CP ConAgra 12/04/00 6.710 50,000 14 130,472.22 6.820 CP GMAC 12/04/00 6.500 50,000 14 126,388.89 6.606 CP GMAC 12/04/00 6.500 50,000 14 126,388.89 6.606 CP ConAgra 12/04/00 6.700 40,000 18 134,000.00 6.815 CP GMAC 12/04/00 6.500 50,000 18 162,500.00 6.611 CP GMAC 12/04/00 6.500 50,000 18 162,500.00 6.611 CP Amer Exp 12/04/00 6.480 50,000 19 171,000.00 6.592 CP Amer Exp 12/04/00 6.480 50,000 19 171,000.00 6.592 CP Heller 12/04/00 6.580 50,000 48 438,666.67 6.73( FNMA 5.000% 12/04/00 5.000 25,000 731 2,500,000.00 5-W FNMA 5.000% 12/04/00 5.000 50,000 731 5,000,000.00 5.00C. PURCHASES y/ CD ABN Amro 6.570% 01 /31 /01 6.560 1,610 CD ABN Amro 6.570% 01 /31 /01 6.560 50,000 CD ABN Amro 6.570% 01 /31 /01 6.560 50,000 PURCHASES CP GECC 12/05/00 6.520 50,000 CP GECC 12/05/00 6.520 50,000 CP GECC 12/05/00 6.520 50,000 CP GECC 12/05/00 6.520 50,000 CP Enron 12/18/00 6.720 46,459 CP SRAC 01 /09/01 7.100 50,000 CP Heller 01 /09/01 7.250 50,000 Disc Notes FHLMC 11 /16/01 5.890 50,000 Disc Notes FNMA 10/24/01 5.910 50,000 5 POOLED MONEY1NVESTMENT ACCOUNT MATURITY TRANS PAR ; DAYS AMOUNT EFFECTIVE DESCRIPTION PATE YIELD : iQ _ HELD EARNED, YIELD ... 12/04/00 PURCHASES C/ Treas Notes 6.375% 01 /31 /02 6.580 50,000 Treas Notes 6.375% 01/31/02 6.580 50,000 Treas Notes 6.625% 05/31/02 6.580 9,538 12/05/00 REDEMPTIONS CID GECC 12/05/00 6.520 50,000 1 9,055.56 6.611 CID GECC 12/05/00 6.520 50,000 1 9,055.56 6.611 CID GECC 12/05/00 6.520 50,000 1 9,055.56 6.611 CID GECC 12/05/00 6.520 50,000 1 9,055.56_ 6.611 CID AT&T 12/05/00 6.620 30,142 7 38,799.45 6.720 CID AT&T 12/05/00 6.620 50,000 7 64,361.11 6.720 CID SRAC 12/05/00 6.750 30,000 15 84,375.00 6.863 CID GMAC 12/05/00 6.500 50,000 15 135,416.67 6.608 Disc Notes FNMA 12/05/00 5.710 50,000 355 2,815,347.22 6.134 SALES . / Treas Notes 6.375% 01 /31 /02 6.580 50,000 1 9,189.15 6.671 Treas Notes 6.375% 01 /31 /02 6.580 50,000 1 9,189.15 6.671 Treas Notes 6.625% 05/31 /02 6.580 9,538 1 1,727.25 6.671 PURCHASES - CD US Bank 6.450% 05/29/01 6.450 50,000 CD US Bank 6.450% 05/29/01 6.450 50,000 CID GECC 12/06/00 6.520 50,000 CP GECC 12/06/00 6.520 50,000 CID Enron 12/18/00 6.720 30,094 CID Heller 02/02/01 7.250 50,000 CID SRAC 02/28/01 7.100 50,000 FHLB 6.750% 02/15/02 6.204 11,000 FHLB 6.750% 02/15/02 6.204 50,000 ' FHLB 6.375% 11/15/02 6.140 25,000 PURCHASES .Q/ Treas Notes 5.000% 04/30/01 6.570 21,171 Treas Notes 5.000% 04/30/01 6.570 50,000 Treas Notes 6.375% 06/30/02 6.570 39,709 12/06/00 REDEMPTIONS CID GECC 12/06/00 6.520 50,000 1 9,055.56 6.611 CID GECC 12/06/00 6.520 50,000 1 9,055.56 6.611 CID GMAC 12/06/00 6.510 50,000 7 63,291.67 6.608 POOLEDMONEY.INVESTMENT`ACCOUNT ... N., r , ... } W MATURITY n . TRANS' ` PAR DAYS AMOUNT EFFECTIVE pg'jF 7YPE DESCRIPTION DAIE YIELD tQ441 HELD EARNED YIELD 12/06/00 REDEMPTIONS (continued) CP GMAC 12/06/00 6.510 50,000 7 63,291.67 6.608 CP Heller 12/06/00 6.650 35,000 15 96,979.17 6.761 CP SRAC 12/06/00 6.750 50,000 22 206,250.00 6.872 FHLMC " 5.990% 12/06/00 6.135 50,000 366 3,064,500.00 6.137 SALES .QI Treas Notes 5.000% 04/30/01 6.570 21,171 1 3,785.60 6.661 Treas Notes 5.000% 04/30/01 6.570 50,000 1 8,940.49 6.661 Treas Notes 6.375% 06/30/02 6.570 39,709 1 7,348.91- 6.661 PURCHASES CP ConAgra 01 /23/01 7.320 10,000 CP ConAgra 01 /23/01 7.320 50,000 CP Heller 01 /29/01 7.250 35,000 CP SRAC 02/14/01 7.150 50,000 CP GMAC 04/02/01 6.250 10,000 CP GMAC' 04/02/01 6.250 50,000 CP GECC 05/29/01 6.150 50,000 CP GECC 05/29/01 6.150 50,000 12/07/00 REDEMPTIONS CD Den Danske 6.530% 12/07/00 6.530 50,000 79 716,486.11 6.620 CD Den Danske 6.530% 12/07/00 6.530 50,000 79 716,486.11 6.620 CD Stnrd Ch 6.580% 12/07/00 6.570 50,000 85 775,643.04 6.661 CD Stnrd Ch 6.580% 12/07/00 6.570 50,000 85 775,643.04 6.661 CP AT&T 12/07/00 6.460 50,000 72 646,000.00 6.634 CP Salomon 12/07/00 6.470 50,000 77 691,930.56 6.651 CP Salomon 12/07/00 6.470 50,000 77 691,930.56 6.651 CP GECC 12/07/00 6.450 50,000 83 743,541.67 6.638 CP GECC 12/07/00 6.450 50,000 83 743,541.67 6.638 Disc Notes FNMA 12/07/00 6.500 30,953 162 905,375.25 6.788 Disc Notes FNMA 12/07/00 6.500 50,000 162 1,462,500.00 6.788 Treas Bills 12/07/00 5.685 50,000 338 2,668,791.65 6.088 Treas Bills 12/07/00 5.685 50,000 338 2,668,791.65 6.088 Treas Bills 12/07/00 5.607 50,000 352 2,741,444.45 6.015 Treas Bills 12/07/00 5.607 50,000 352 2,741,444.45 6.015 Treas Bills 12/07/00 5.592 50,000 353 2,741,878.45 5.999 Treas Bills 12/07/00 5.592 50,000 353 2,741,878.45 5.999 Treas Bills 12/07/00 5.350 50,000 364 2,704,722.22 5.734 Treas Bills 12/07/00 5.350 50,000 364 2,704,722.22 5.734 Treas Bills 12/07/00 5.350 50,000 364 2,704,722.22 5.734 Treas Bills 12/07/00 5.350 50,000 364 2,704,722.22 5.734 FHLB 4.935% 12/07/00 4.877 15,000 731 1,464,111.15 4.879 7 POOLED MONEY INVESTMENT ACCOUNT Y` �! MATURITY "TRANS PAR "` DAYS "AMOUNT EFFECTIVE _ DAM_.__ DESCRIPTION IYP�:. _ .... .. .. _._.BATE .. _..__.. YIELD ... (00�1. bE1.Q .._ EARNED YIELD .._ _ YlELQ _ 12/07/00 REDEMPTIONS (continued) FHLB 4.935% 12/07/00 4.877 50,000 731 4,880,370.50 4.879 RRP Treas Bills 12/07/00 6.080 50,000 72 (598,880.00) -6.164 Treas Bills 12/07/00 6.100 50,000 77 (643,880.42) -6.184 Treas Bills 12/07/00 6.100 50,000 77 (643,880.42) -6.184 Treas Bills 12/07/00 6.070 50,000 79 (656,856.20) -6.154 Treas Bills 12/07/00 6.070 50,000 79 (656,856.20) -6.154 Treas Bills 12/07/00 6.085 50,000 83 (691,761.67) -6.169 Treas Bills 12/07/00 6.085 50,000 83 (691,761.67) -6.169 Treas Bills 12/07/00 6.050 50,000 85 (704,236.81) -6.134 Treas Bills 12/07/00 6.050 50,000 85 (704,236.81) -6.134 PURCHASES CD UBS 6.530% 02/01/01 6.520 40,000 CD UBS 6.530% 02/01/01 6.520 50,000 CP Assoc 12/08/00 6.510 50,000 CP Assoc 12/08/00 6.510 50,000 CP Assoc 12/08/00 6.510 50,000 CP Assoc 12/08/00 6.510 50,000 CP* Salomon 02/28/01 6.360 50,000 CP Salomon 02/28/01 6.360 50,000 Disc Notes FNMA 11/30/01 5.735 50,000 Disc Notes FNMA 11/30/01 5.735 50,000 Disc Notes FNMA 11/30/01 5.735 50,000 Disc Notes FNMA 11/30/01 5.735 50,000 Disc Notes FNMA 11/30/01 5.735 50,000 PURCHASES/ Treas Bills 02/08/01 6.520 29,245 Treas Bills 05/10/01 6.520 25,000 Treas Bills 05/10/01 6.520 50,000 12/08/00 REDEMPTIONS CP Assoc 12/08/00 6.510 50,000 1 9,041.67 6.601 CP Assoc 12/08/00 6.510 50,000 1 9,041.67 6.601 CP Assoc 12/08/00 6.510 50,000 1 9,041.67 6.601 CP Assoc 12/08/00 6.510 50,000 1 9,041.67 6.601 CP FMCC 12/08/00 6.520 50,000 10 90,555.56 6.622 CP EntFun 12/08/00 6.520 10,733 18 34,989.58 6.632 CP Heller 12/08/00 6.580 25,000 18 82,250.00 6.693 CP EntFun 12/08/00 6.520 50,000 18 163,000.00 6.632 8 POOLED MONEY INVESTMENT.'ACCOUNT 12/08/00 REDEMPTIONS (continued) CID Salomon 12/08/00 6.500 50,000 18 162,500.00 6.611 CID Salomon 12/08/00 6.500 50,000 18 162,500.00 6.611 CID SRAC 12/08/00 6.600 50,000 23 210,833.33 6.720 CID Heller 12/08/00 6.630 50,000 23 211,791.67 6.750 CID ConAgra 12/08/00 6.600 28,300 52 269,793.33 6.756 Disc Notes FNMA 12/08/00 5.710 50,000 358 2,839,138.89 6.137 Disc Notes FNMA 12/08/00 5.700 50,000 359 2,842,083.33 6.127 Disc Notes FNMA 12/08/00 5.700 50,000 359 2,842,083.33 6.127 SALES . / Treas Bills 02/08/01 6.520 Treas Bills 05/10/01 6.520 Treas Bills 05/10/01 6.520 PURCHASES MTN GMAC MTN GMAC 12/11/00 RRS Treas Bills Treas Bills Treas Bills REDEMPTIONS 6.750% 12/10/02 6.470 5.875% 01 /22/03 6.580 08/30/01 6.250 11 /29/01 6.300 11 /29/01 6.300 29,245 1 5,135.04 6.610 25,000 1 4,325.30 6.610 50,000 1 8,650.77 6.610 16,275 34,000 50,000 50,000 50,000 CD Bayer Lnds 6.610% 12/11/00 6.600 25,000 119 545,728.33 6.695 CD Bayer Lnds 6.610% 12/11/00 6.600 50,000 119 1,091,456.66 6.695 CID AT&T 12/11/00 6.620 21,043 12 46,434.89 6.726 CID AT&T 12/11/00 6.620 50,000 12 110,333.33 6.726 CID FMCC 12/11/00 6.490 50,000 12 108,166.67 6.594 CID FMCC 12/11/00 6.490 50,000 12 108,166.67 6.594 Disc Notes FNMA 12/11/00 5.740 5,000 357 284,608.33 6.170 Disc Notes FNMA 12/11/00 5.740 50,000 357 2,846,083.33 6.170 FNMA 4.720% 12/11/00 4,840 50,000 731 4,834,000.00 4.848 FNMA 4.720% 12/11/00 4.840 50,000 731 4,834,000.00 4.848 PURCHASES 9/ CID Salomon 01/16/01 6.570 45,276 CID Salomon 01 /16/01 6.570 48,242 CP Salomon 01 /16/01 6.570 50,000 POOLED MONEY'INVESTMENT ACCOUNT CP JP Morgan 12/12/00 6.500 50,000 CP SRAC 12/29/00 6.550 10,000 CP SRAC 12/29/00 6.550 50,000 Disc Notes FNMA 11/08/01 5.780 50,000 Disc Notes FNMA 11/08/01 5.780 50,000 FHLB 7.250% 05/15/02 6.049 45,000 FHLB 7.250% 05/15/02 6.049 50,000 FNMA 6.400% 12/21/01 6.114 50,000 FNMA 6.400% 12/21/01 6.114 50,000 12/12/00 REDEMPTIONS CP JP Morgan PURCHASES Disc Notes FNMA FNMA 12/13/00 RRS 12/12/00 6.500 50,000 11/08/01 5.780 50,000 6.400% 12/21/01 6.114 27,500 Treas Bills 03/01 /01 6.030 50,000 Treas Bills 05/31/01 6.300 50,000 PURCHASES g/ CD Cr Suisse 6.590% 01 /12/01 6.590 48,625 CD CommerzBk 6.475% 03/01 /01 6.460 49,350 PURCHASES CD UBS 6.480% 03/01/01 6.450 45,500 CP ConAgra 01 /10/01 7.570 7,607 CP ConAgra 01 /10/01 7.570 50,000 Disc Notes FNMA 11/09/01 5.740 15,000 Disc Notes FNMA 11/09/01 5.740 50,000 Disc Notes FNMA 11/30/01 5.740 50,000 Disc Notes FNMA 11/30/01 5.740 50,000 Treas Bills 11 /29/01 5.455 50,000 Treas Bills 11 /29/01 5.455 50,000 FHLB 6.085% 12/13/01 6.125 50,000 FHLB 6.085% 12/13/01 6.125 50,000 FHLB 6.085% 12/13/01 6.125 50,000 10 1 9,027.78 6.591 POOLED MONEY INVESTMENT ACCOUNT r .;Afy , �l MATURITY TRANS PAR`a DAYS AMOUNT EFFECTIVE _..:. DATE,,::. _ _ . TYPE_.:., ..... _ DESCRIPTION DATE Y1ELQ i�2 _ fiELQ EABI�lEQ YIELD 12/14/00 REDEMPTIONS Disc Notes FHLMC 12/14/00 5.700 50,000 365 2,889,583.33 6.133 PURCHASES CP GECC 02/28/01 6.330 30,000 CP GECC 02/28/01 6.330 50,000 CP GECC 02/28/01 6.330 50,000 12/15/00 REDEMPTIONS Disc Notes FFCB 12/15/00 5.860 15,000 346 844,816.67 6.295 Disc Notes - FNMA 12/15/00 5.780 50,000 359 2,881,972.22 6.218 Disc Notes FNMA 12/15/00 5.780 50,000 359 2,881,972.22 6.218 Disc Notes FNMA 12/15/00 5.780 50,000 359 2,881,972.22 6.218 Disc Notes FNMA 12/15/00 5.780 50,000 359 2,881,972.22 6.218 Disc Notes FNMA 12/15/00 5.750 40,000 360 2,300,000.00 6.185 Disc Notes FHLB 12/15/00 5.770 50,000 360 2,885,000.00 6.208 Disc Notes FNMA 12/15/00 5.750 50,000 360 2,875,000.00 6.185 Disc Notes FNMA 12/15/00 5.750 50,000 360 2,875,000.00 6.185 MTN World 8.850% 12/15/00 4.920 2,000 732 206,351.67 4.925 FNMA 4.830% 12/15/00 4.830 50,000 724 4,783,041.67 4.835 PURCHASES BN Banc One 6.330% 05/29/01 6.330 50;000 BN Banc One 6.330% 05/29/01 6.330 50,000 BN Banc One 6.330% 05/29/01 6.330 50,000 BN Banc One 6.330% 05/29/01 6.330 50,000 CP GMAC 12/18/00 6.500 50,000 CP GMAC 12/18/00 6.500 50,000 CP GMAC 12/18/00 6.500 50,000 CP GMAC 12/18/00 6.500 50,000 CP Assoc 12/18/00 6.510 50,000 CP Assoc 12/18/00 6.510 50,000 CP Assoc 12/18/00 6.510 50,000 CP Assoc 12/18/00 6.510 50,000 CP Enron 12/20/00 6.780 50,000 CP Household 12/20/00 6.460 50,000 CP Household 12/20/00 6.460 50,000 CP Amer Exp 12/20/00 6.470 50,000 CP Amer Exp 12/20/00 6.470 50,000 CP Amer Exp 12/20/00 6.470 50,000 CP Amer Exp 12/20/00 6.470 50,000 CP GECC 12/21/00 6.470 50,000 CP GECC 12/21/00 6.470 50,000 CP Heller 01/09/01 7.400 50,000 11 POOLED MONEY INVESTMENT ACCOUNT At 'MATURITY TRANS PAR DAYS AMOUNT EFFECTIV DESCRIPTION YIELDDAM ._ EARNED YIELD 12/15/00 PURCHASES (continued) CP GECC 02/20/01 6.330 50,000 CP GECC 02/20/01 6.330 50,000 CP GECC 02/20/01 6.330 50,000 CP GECC 02/20/01 6.330 50,000 CP Morg Stan 02/28/01 6.400 50,000 CP Morg Stan 02/28/01 6.400 50,000 CP Morg Stan 02/28/01 6.400 50,000 CP Morg Stan 02/28/01 6.400 50,000 CP GECC 03/28/01 6.210 20,000 CP GECC 03/28/01 6.210 50,000 CP GECC 03/28/01 6.210 50,000 Disc Notes FNMA 11/30/01 5.640 32,000 MTN GMAC 7.750% 03/25/02 6.500 10,000 MTN GMAC 5.600% 04/30/02 6.500 23,000 12/18/00 REDEMPTIONS CP GMAC 12/18/00 6.500 50,000 3 27,083.33 6.59: CP GMAC 12/18/00 6.500 50,000 3 27,083.33 6.59, CP GMAC 12/18/00 6.500 50,000 3 27,083.33 6.59: CP GMAC 12/18/00 6.500 50,000 3 27,083.33 6.59' CP Assoc 12/18/00 6.510 50,000 3 27,125.00 6.601: CP Assoc 12/18/00 6.510 50,000 3 27,125.00 6.60: CP Assoc 12/18/00 6.510 50,000 3 27,125.00 6.60: CP Assoc 12/18/00 6.510 50,000 3 27,125.00 6.60� CP Enron 12/18/00 6.720 30,094 13 73,028.11 6.82C CP Enron 12/18/00 6.720 46,459 14 121,412.85 6.831 FNMA 4.820% 12/18/00 4.875 50,000 731 4,872,000.00 4.88C FNMA 4.820% 12/18/00 4.875 50,000 731 4,872,000.00 4.88C PURCHASES CP GECC 12/19/00 6.500 50,000 CP GECC 12/19/00 6.500 50,000 CP GECC 12/19/00 6.500 50,000 CP GECC 12/19/00 6.500 50,000 CP Amer Exp 12/29/00 6.460 10,000 CP Enron 12/29/00 6.780 40,000 CP Amer Exp 12/29/00 6.460 50,000 CP Amer Exp 12/29/00 6.460 50,000 CP GMAC 02/16/01 6.400 50,000 CP GMAC 02/16/01 6.400 50,000 CP GMAC 02/16/01 6.400 50,000 CP GMAC 02/16/01 6.400 50,000 CP FMCC 02/28/01 6.380 50,000 CP FMCC 02/28/01 6.380 50,000 12 " "".''""_""" POOLED MONEY INVESTMENT ACCOUNT b ..� % x t..f:'•� M1. .�' ,� - uy +,Sr.,r.d ,$ xHg, ga<:. a �,r df, # MATURRY`� TRANS PAR ,., -, :DAYS AMOUNT EFFECTIVE DAIE TYPE DESCRIPTION �AIE YJELQ . . _ . w y. _.._ i4442 tiELQ E6BdEl2 YIELD 12/18/00 PURCHASES (continued) CP FMCC 02/28/01 6.380 50,000 CP FMCC 02/28/01 6.380 50,000 CP FMCC 05/29/01 6.040 50,000 CP FMCC 05/29/01 6.040 50,000 CP FMCC 05/29/01 6.040 50,000 Disc Notes FNMA 11/30/01 5.570 50,000 FHLB 5.370% 01/16/03 5.830 50,000 12/19/00 REDEMPTIONS CP GECC 12/19/00 6.500 50,000 1 9,027.78 6.591 CP GECC 12/19/00 6.500 50,000 1 9,027.78 6.591 CP GECC 12/19/00 6.500 50,000 1 9,027.78 6.591 CP GECC 12/19/00 6.500 50,000 1 9,027.78 6.591 PURCHASES CP Household 02/28/01 6.320 50,000 CP Household 02/28/01 6.320 50,000 CP FMCC 03/05/01 6.300 50,000 CP FMCC 03/05/01 6.300 50,000 CP GECC 03/06/01 6.280 50,000 CP GECC 03/06/01 6.280 50,000 CP GECC 03/07/01 6.280 50,000 CP GECC 03/07/01 6.280 50,000 CP FMCC 03/09/01 6.300 50,000 CP FMCC 03/09/01 6.300 50,000 CP W/F 04/02/01 6.270 50,000 CP FMCC 05/10/01 6.070 50,000 CP FMCC 05/10/01 6.070 50,000 CP FMCC 05/14/01 6.070 50,000 CP FMCC 05/14/01 6.070 50,000 MTN W/F 7.200% 05/01 /03 6.300 31,500 12/20/00 REDEMPTIONS CP Household 12/20/00 6.460 50,000 5 44,861.11 6.555 CP Household 12/20/00 6.460 50,000 5 44,861.11 6.555 CP Amer Exp 12/20/00 6.470 50,000 5 44,930.56 6.565 CP Amer Exp 12/20/00 6.470 50,000 5 44,930.56 6.565 CP Amer Exp 12/20/00 6.470 50,000 5 44,930.56 6.565 CP Amer Exp 12/20/00 6.470 50,000 5 44,930.56 6.565 CP Enron 12/20/00 6.780 50,000 5 47,083.33 6.880 13 _. _ .R.a-..... _ ,. ..-,...��-..--'�....m .��.__.:.,-.-.'..,,,�.r?-'.T�"'--"'1,.;'�.'°+,'-.,.,.;.'.-i"'.t".-^±e.:,t�+e-�ls�:^ T., ._.. ,: ,_,..2-^-"'!-, aye .• ...._ ..�... POOLED MONEY INVESTMENT ACCOUNT 8l t` al MATURITY ' 'TRANS PAR DAYS AMOUNT EFFECTIVE W DAM _ .... IfPE-DESCRIPTION _.�pAIE_M _ YIE,LQ`� ice!_ �iELQ EARNED YIELD 12/20/00 PURCHASES CD US Bank 6.260% 05/17/01 6.260 50,000 CP NCAT 12/21/00 6.480 50,000 CP NCAT 12/21/00 6.480 50,000 CP Enron" 12/27/00 6.780 25,000 CP GECC 03/23/01 6.260 50,000 CP GECC 03/23/01 6.260 50,000 CP JP Morgan 03/23/01 6.280 50,000 CP JP Morgan 03/23/01 6.280 50,000 CP GECC 03/28/01 6.260 50,000 CP GECC 03/28/01 6.260 50,000 CP JP Morgan 03/28/01 6.280 50,000 CP JP Morgan 03/28/01 6.280 50,000 CP FMCC 04/02/01 6.180 50,000 CP FMCC 04/02/01 6.180 50,000 CP FMCC 04/02/01 6.180 50,000 CP FMCC 04/02/01 6.180 50,000 CP FMCC 04/03/01 6.180 50,000 CP FMCC 04/03/01 6.180 50,000 CP FMCC 04/03/01 6.180 50,000 CP FMCC 04/03/01 6.180 50,000 Disc Notes FNMA 12/14/01 5.475 25,000 Disc Notes FNMA 12/14/01 5.475 50,000 Disc Notes FNMA 12/14/01 5.475 50,000 12/21/00 REDEMPTIONS CP NCAT 12/21/00 6.480 50,000 1 9,000.00 6.571 CP NCAT 12/21/00 6.480 50,000 1 9,000.00 6.571 CP GECC 12/21/00 6.470 50,000 6 53,916.67 6.566 CP GECC 12/21/00 6.470 50,000 6 53,916.67 6.566 CP Salomon 12/21/00 6.480 41,991 20 151,167.60 6.593 CP Salomon 12/21/00 6.480 50,000 20 180,000.00 6.593 CP Salomon 12/21/00 6.480 50,000 20 180,000.00 6.593 CP Salomon 12/21/00 6.480 50,000 20 180,000.00 6.593 RRP Treas Bills 08/30/01 6.200 50,000 20 (164,730.56) -6.286 Treas Bills 08/30/01 6.200 50,000 20 (164,730.56) -6.286 Treas Bills 08/30/01 6.200 50,000 20 (164,730.56) -6.286 Treas Bills 08/30/01 6.200 50,000 20 (164,730.56) -6.286 PURCHASES CP Salomon 01/02/01 6.570 50,000 CP Salomon 01/02/01 6.570 50,000 14 POOLED MONEY INVESTMENT:ACCOUNT�. If MATURITY x TRANS PAR. W • DAYS+ AMOUNT EFFECTIVE. _ r r EARNED YIELD DATE TYPE DESCRIPTION DAM )nELQ�<. �OdQh bELQ 12121/00 PURCHASES (continued) CP Salomon 01 /11 /01 6.550 50,000 CP FMCC 05/01/01 6.070 50,000 CP FMCC 05/01/01 6.070 50,000 CP FMCC 05/03/01 6.070 50,000 CP FMCC 05/03/01 6.070 50,000 CP FMCC 05/08/01 6.070 50,000 CP FMCC 05/08/01 6.070 50,000 CP Amer Exp 05/17/01 6.050 50,000 CP Amer Exp 05/17/01 - 6.050 50,000 CP GMAC 05/29/01 6.000 50,000 CP GMAC 05/29/01 6.000 50,000 Disc Notes FNMA 11/30/01 5.415 50,000 Disc Notes FNMA 11/30/01 5.415 50,000 FIR SBA 7.125% 12/25/25 7.125 10,590 12/22/00 RRS Treas Bills 03/01 /01 5.610 50,000 Treas Bills 03/01 /01 5.610 50,000 REDEMPTIONS Disc Notes FHLB 12/22/00 6.490 45,224 177 1,443,060.15 6.797 Disc Notes FHLB 12/22/00 6.490 50,000 177 1,595,458.33 6.797 Disc Notes FHLB 12/22/00 5.750 50,000 359 2,867,013.89 6.184 Disc Notes FHLB 12/22/00 5.750 50,000 359 2,867,013.89 6.184 Disc Notes FHLB 12/22/00 5.750 50,000 359 2,867,013.89 6.184 Disc Notes FHLB 12/22/00 5.750 50,000 359 2,867,013.89 6.184 Disc Notes FHLB 12/22/00 5.770 50,000 359 2,876,986.11 6.207 Disc Notes FHLMC 12/22/00 5.680 50,000 359 2,832,111.11 6.104 Disc Notes FHLMC 12/22/00 5.680 50,000 359 2,832,111.11 6.104 Disc Notes FHLMC 12/22/00 5.720 50,000 360 2,860,000.00 6.151 Disc Notes FHLMC 12/22/00 5.720 50,000 360 2,860,000.00 6.151 MTN FR Chase 5.427% 12/22/00 5.427 50,000 730 6,107,026.04 6.107 PURCHASES g/ CP Salomon 03/01 /01 6.250 50,000 CP Salomon 03/01 /01 6.250 50,000 PURCHASES CP GECC 04/02/01 6.080 50,000 CP GECC 04/02/01 6.080 50,000 CP Amer Exp 05/01/01 5.950 50,000 CP Amer Exp 05/01/01 5.950 50,000 15 POOLED MONEY INVESTMENT ACCOUNT - MATURITY `` TRANS' PAR '" "DAYS . AMOUNT EFFECTIVE . r TF � QESCRIi�nQ _. ...+, _ ... �__.. YIEI.Q w. _M �` _ �,� "` .� y..; k, :_FABNEL� YIELD 12/22/00 PURCHASES (continued) CP Amer Exp 05/03/01 5.950 50,000 CP Amer Exp 05/03/01 5.950 50,000 CP FMCC 05/08/01 6.000 50,000 CP FMCC 05/08/01 6.000 50,000 Disc Notes FHLB 06/22/01 5.785 50,000 Disc Notes FHLB 06/22/01 5.785 50,000 Disc Notes FHLB 07/20/01 5.730 28,000 Disc Notes FHLB 07/20/01 5.730 45,000 Disc Notes FHLMC 08/31/01 5.600 50,000 Disc Notes FHLMC 08/31/01 5.600 50,000 Disc Notes FHLMC 10/11/01 5.560 49,329 Disc Notes FHLMC 10/11/01 5.560 50,000 Disc Notes FHLMC 11 /19/01 5.460 50,000 Disc Notes FHLMC 11/19/01 5.460 50,000 12/26/00 NO SALES PURCHASES BN Banc One 6.120% 06/26/01 6.120 50,000 BN Banc One 6.120% 06/26/01 6.120 50,000 CD US Bank 6.110% 06/27/01 6.110 50,000 CD US Bank 6.110% 06/27/01 6.110 50,000 CD US Bank 6.110% 06/27/01 6.110 50,000 CD US Bank 6.110% 06/27/01 6.110 50,000 CD U/B Calif 6.130% 06/29/01 6.130 50,000 CD U/B Calif 6.130% 06/29/01 6.130 50,000 CP NCAT 12/27/00 6.540 25,000 CP NCAT 12/27/00 6.540 50,000 CP GECC 12/27/00 6.530 50,000 CP GECC 12/27/00 6.530 50,000 CP GECC 12/27/00 6.530 50,000 CP GECC 12/27/00 6.530 50,000 12/27/00 REDEMPTIONS CD Zions 6.880% 12/27/00 6.860 50,000 180 1,715,165.81 6.955 CD Zions 6.880% 12/27/00 6.860 50,000 180 1,715,165.81 6.955 CD US Bank 6.870% 12/27/00 6.870 50,000 180 1,717,500.00 6.965 CD US Bank 6.870% 12/27/00 6.870 50,000 180 1,717,500.00 6.965 CD Montreal 6.800% 12/27/00 6.800 50,000 181 1,709,444.44 6.894 CD Montreal 6.800% 12/27/00 6.800 50,000 181 1,709,444.44 6.894 CD CIBC 7.060% 12/27/00 6.850 26,600 182 928,054.61 6.991 CD Zions 6.820% 12/27/00 6.810 35,000 182 1,205,050.56 6.904 CD Zions 6.820% 12/27/00 6.810 50,000 182 1,721,500.79 6.904 CD WestDeut 6.820% 12/27/00 6.820 50,000 182 1,723,944.44 6.914 16 POOLED MONEY INVESTMENT ACCOUNT V _ MATURITY TRANS'. PAR DAYS AMOUNT EFFECTIVE' DESCRIPTION 24M HELD FABdE2 YIELD 12/27/00 REDEMPTIONS (continued) CD WestDeut 6.820% 12/27/00 6.820 50,000 182 1,723,944.44 6.914 CD Zions 6.840% 12/27/00 6.830 45,000 184 1,570,977.58 6.924 CD Zions 6.840% 12/27/00 6.830 50,000 184 1,745,530.65 6.924 CD ABN Amro 6.810% 12/27/00 6.810 50,000 184 1,740,333.33 6.904 CD Soc Gen 6.830% 12/27/00 6.830 50,000 190 1,802,361.11 6.924 CD Bayer Ver 6.880% 12/27/00 6.875 50,000 203 1,938,420.67 6.970 CD CIBC 7.020% 12/27/00 7.020 50,000 217 2,115,750.00 7.117 CD CIBC 7.020% 12/27/00 7.020 50,000 217 2,115,750.00 7.117 CD U/B Calif 6.350% 12/27/00 6.350 50,000 364 3,210,277.78 6.438 CD U/B Calif 6.350% 12/27/00 6.350 50,000 364 3,210,277.78 - 6.438 CD U/B Calif 6.350% 12/27/00 6.350 50,000 364 3,210,277.78 6.438 CD U/B Calif 6.350% 12/27/00 6.350 50,000 364 3,210,277.78 6.438 CP NCAT 12/27/00 6.540 25,000 1 4,541.67 6.632 CP NCAT 12/27/00 6.540 50,000 1 9,083.33 ' 6.632 CP GECC 12/27/00 6.530 50,000 1 9,069.44 6.621 CP GECC 12/27/00 6.530 50,000 1 9,069.44 6.621 CP GECC 12/27/00 6.530 50,000 1 9,069.44 6.621 CP GECC 12/27/00 6.530 50,000 1 9,069.44 6.621 CP Enron 12/27/00 6.780 25,000 7 32,958.33 6.883 Disc Notes FHLMC 12/27/00 5.720 50,000 365 2,899,722.22 6.156 Disc Notes FHLMC 12/27/00 5.720 50,000 365 2,899,722.22 6.156 NO PURCHASES 12/28/00 REDEMPTIONS CD US Bank 6.830% 12/28/00 6.830 50,000 183 1,735,958.33 6.924 CD US Bank 6.830% 12/28/00 6.830 50,000 183 1,735,958.33 6.924 Disc Notes FNMA 12/28/00 5.830 50,000 358 2,898,805.56 6.274 FHLB 4.905% 12/28/00 4.960 50,000 731 4,957,000.00 4.965 PURCHASES CD CommerzBk 6.080% 07/02/01 6.060 50,000 CD CommerzBk 6.080% 07/02/01 6.060 50,000 CD Svenska 6.060% 07/03/01 6.060 50,000 CD Svenska 6.060% 07/03/01 6.060 50,000 CD Svenska 6.060% 07/03/01 6.060 50,000 CP GECC 12/29/00 6.450 50,000 CP GECC 12/29/00 6.450 50,000 CP GECC 12/29/00 6.450 50,000 CP FMCC 01/02/01 6.250 50,000 CP FMCC 01/02/01 6.250 50,000 CP FMCC 01/02/01 6.250 50,000 CP FMCC 01/02/01 6.250 50,000 CP FMCC 01/02/01 6.250 50,000 17 POOLED MONEY INVESTMENT ACCOUNT 1/ PAR ; .. at IMTUPJW TRANS . DAYS 3 n . AMOUNT EFFECTIVE .DESCRIPTION ., 12/28/00 PURCHASES (continued) CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Amer Exp 01/02/01 6.380 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Morg Stan 01/12/01 6.650 50,000 CP Country 01 /24/01 6.500 35,000 CP Country 01/24/01 6.500 50,000 Disc Notes FNMA 12/14/01 5.420 17,000 Disc Notes FNMA 12/14/01 5.420 17,118 Disc Notes FNMA 12/14/01 5.420 50,000 Disc Notes FNMA 12/14/01 5.420 50,000 Disc Notes FNMA 12/14/01 5.420 50,000 Disc Notes FNMA 12/14/01 5.420 50,000 Treas Bills 11 /29/01 5.135 50,000 Treas Bills 11 /29/01 5.135 50,000 Treas Bills 11 /29/01 5.135 50,000 Treas Bills 11/29/01 5.135 50,000 12/29/00 REDEMPTIONS CP GECC 12/29/00 6.450 50,000 1 8,958.33 6.540 CP GECC 12/29/00 6.450 50,000 1 8,958.33 6.540 CP GECC 12/29/00 6.450 50,000 1 8,958.33 6.540 CP Amer Exp 12/29/00 6.460 10,000 11 19,738.89 6.562 CP Enron 12/29/00 6.780 40,000 11 82,866.67 6.888 CP Amer Exp 12/29/00 6.460 50,000 11 98,694.44 6.562 CP Amer Exp 12/29/00 6.460 50,000 11 98,694.44 6.562 CP SRAC 12/29/00 6.550 10,000 18 32,750.00 6.662 CP SRAC 12/29/00 6.550 50,000 18 163,750.00 6.662 Disc Notes FHLB 12/29/00 5.840 10,000 359. 582,377.78 6.287 Disc Notes FHLB 12/29/00 5.840 50,000 360 2,920,000.00 6.288 Disc Notes FHLB 12/29/00 5.840 50,000 360 2,920,000.00 6.288 Disc Notes FHLMC 12/29/00 5.830 45,000 359 2,616,212.50 6.275 Disc Notes FHLMC 12/29/00 5.830 50,000 359 2,906,902.78 6.275 PURCHASES CP Amer Exp 01 /16/01 6.300 35,000 18 POOLED ':MONEY INVESTMENT -ACCOUNT -.'a' 'wfq .. �»�*°k...i�''�.��y� .,. Xt: �L..�s r �S"T *-•�^v.,, 'd `"" °� a. a" t..? � s'"' � .. .. .. A". ; a `� ... .+� "� +` . ,, MATURI'T1f .� TRANS' • PAR?DAYS'.- AMOUNT EFFECTIVE . a DAM I DESCRIPTION._.�AIE_ .�` YlE1.Q L 942�._ _ . EARNED � YIELQ__. 12/29/00 PURCHASES (continued) CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01/16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 CP Amer Exp 01 /16/01 6.300 50,000 19 al The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXIM), Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), U.S. Ship Financing Bonds (TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA) Medium Term Notes (MTN). h/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. ¢/ 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. all AGOURA HILLS Pacific Crest Bank Pacific Crest Bank Pacific Crest Bank Pacific Crest Bank Grand National Bank Grand National Bank Grand National Bank Grand National Bank Grand National Bank Omni Bank Omni Bank Omni Bank Mid -State Bank Mid -State Bank Mid -State Bank BEVERLY HILLS City National Bank City National Bank City National Bank City National Bank CAMARILLO Camarillo Community Bank CHICO North State National Bank North State National Bank North State National Bank North State National Bank North State National Bank DEPOSIT PAR MATURITY DATE YIELD AMOUNT (S) DATE 10/16/00 6.240 10,000,000.00 01 /16/01 08/31 /00 6.430 5,000,000.00 02/27/01 10/04/00 6.330 8,000,000.00 04/02/01 12/01 /00 6.240 5,000,000.00 06/01 /01 07/20/00 6.360 3,095,000.00 01 /16/01 08/07/00 6.330 3,000,000.00 02/16/01 00/06/00 6.300 3,000,000.00 05/31 /01 06/23/00 6.170 1,000,000.00 06/25/01 07/14/00 6.120 2,000,000.00 07/13/01 10/30/00 6.370 1,300,000.00 01 /29/01 11 /28/00 6.380 2,000,000.00 02/26/01 12/04/00 6.260 6,000,000.00 03/05/01 07/17/00 6.270 5,000,000.00 01 /12/01 09/19/00 6.230 5,000,000.00 03/19/01 10/16/00 6.220 5,000,000.00 04/16/01 02/28/00 6.220 20,000,000.00 02/28/01 09/15/00 6.200 20,000,000.00 03/16/01 10/16/00 6.250 25,000,000.00 04/16/01 09/29/00 6.220 50,000,000.00 06/05/01 11 /21 /00 6.370 3,000,000.00 02/21 /01 07/07/00 6.220 3,000,000.00 01 /05/01 08/24/00 6.380 1,000,000.00 02/23/01 09/01 /00 6.410 1,500,000.00 03/02/01 04/06/00 6.170 1,000,000.00 04/06/01 04/07/00 6.170 1,000,000.00 04/06/01 21 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE CHICO (continued) TO Counties Bank 10/10/00 6.260 10,000,000.00 01/08/01 Tri Counties Bank 12/05/00 6.190 10,000,000.00 03/06/01 Tri Counties Bank 12/12/00 6.080 10,000,000.00 03/14/01 - Tri Counties Bank CHULA VISTA 12/19/00 5.950 10,000,000.00 03/21 /01 North Island Federal Credit Union 09/15/00 6.240 20,000,000.00 03/14/01 North Island Federal Credit Union CITY OF INDUSTRY 12/15/00 6.030 20,000,000.00 06/13/01 EverTrust Bank 10/16/00 6.210 3,000,000.00 04/27/01 EverTrust Bank 12/21/00 5.930 2,000,000.00 06/15/01 EverTrust Bank 12/11/00 6.040 4,000,000.00 06/15/01 EverTrust Bank CONCORD 07/18/00 6.110 3,000,000.00 07/18/01 CA State 9 Credit Union DUBLIN 11 /21 /00 6.410 10,000,000.00 02/20/01 Operating Engineers FCU 12/19/00 5.840 10,000,000.00 01/19/01 Operating Engineers FCU 08/22/00 6.350 10,000,000.00 02/20/01 Operating Engineers FCU EL CENTRO 11/30/00 6.310 5,000,000.00 05/29/01 Valley Independent Bank 07/31 /00 6.330 5,000,000.00 01 /29/01 Valley Independent Bank 08/11 /00 6.340 3,750,000.00 02/15/01 Valley Independent Bank 10/31 /00 6.410 15,000,000.00 05/01 /01 Valley Independent Bank EL SEGUNDO 05/15/00 6.410 3,750,000.00 05/15/01 Xerox Federal Credit Union 08/15/00 6.380 15,000,000.00 02/13/01 Xerox Federal Credit Union 11/14/00 6.390 5,000,000.00 05/14/01 Xerox Federal Credit Union 12/05/00 6.180 7,000,000.00 06/04/01 22 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE FRESNO United Security Bank 11 /01 /00 6.380 15,000,000.00 01 /30/01 United Security Bank 11/15/00 6.390 10,000,000.00 05/14/01 FULLERTON Fullerton Community Bank 01 /19/00 6.160 8,000,000.00 01 /19/01 Fullerton Community Bank INGLEWOOD 11 /21 /00 6.390 9,000,000.00 05/21 /01 Imperial Bank 10/05/00 6.260 20,000,000.00 01/18/01 Imperial Bank 10/19/00 6.250 25,000,000.00 01/25/01 Imperial Bank 10/12/00 6.270 25,000,000.00 01/25/01 Imperial Bank 11/02/00 6.410 15,000,000.00 02/01/01 Imperial Bank 11/09/00 6.440 18,000,000.00 02/01/01 Imperial Bank 07/06/00 6.260 25,000,000.00 02/01/01 Imperial Bank 09/14/00 6.180 75,000,000.00 02/22/01 Imperial Bank 06/22/00 6.010 20,000,000.00 03/01/01 Imperial Bank 08/10/00 6.210 18,000,000.00 03/08/01 Imperial Bank 08/17/00 6.240 25,000,000.00 03/08/01 Imperial Bank 11/16/00 6.360 25,000,000.00 04/05/01 Imperial Bank LA HABRA 12/07/00 6.130 26,000,000.00 04/05/01 South Western FCU 10/10/00 6.270 3,000,000.00 01 /09/01 South Western FCU ME 10/10/00 6.370 3,000,000.00 04/10/01 LAME Borrego Springs Bank 10/30/00 6.400 1,000,000.00 01 /29/01 Borrego Springs Bank 12/12/00 6.110 1,000,000.00 03/14/01 Silvergate Bank LAGUNA HILLS 11/13/00 6.470 5,000,000.00 02/09/01 Antelope Valley Bank 12/08/00 6.140 3,000,000.00 03/08/01 Eldorado Bank 10/23/00 6.370 20,000,000.00 01 /22/01 Eldorado Bank 11 /20/00 6.400 20,000,000.00 02/20/01 Eldorado Bank 12/14/00 6.110 25,000,000.00 03/14/01 23 11 ItIuI=1 ,0 • DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT (a) DATE LAKEPORT Lake Community Bank 12/28/00 5.830 2,000,000.00 03/28/01 Farmers & Merchant Bk Cen CA 10/04/00 6.220 10,000,000.00 01 /04/01 Broadway Federal Bank 06/30/00 6.250 1,250,000.00 01 /08/01 Broadway Federal Bank 07/07/00 6.230 1,250,000.00 01 /08/01 Broadway Federal Bank 10/02/00 6.310 2,500,000.00 04/09/01 California Center Bank 10/06/00 6.240 10,000,000.00 01 /04/01 California Chohung Bank 07/19/00 6.320 1,000,000.00 01 /17/01 Cathay Bank 12/05/00 6.190 30,000,000.00 03/05/01 Cathay Bank 12/18/00 6.070 9,000,000.00 03/21/01 Cathay Bank 12/27/00 5.690 10,000,000.00 03/30/01 Cathay Bank 10/13/00 6.280 19,000,000.00 04/13/01 Eastern International Bank 11/06/00 6.420 900,000.00 05/07/01 Eastern International Bank 12/14/00 6.080 1,000,000.00 06/12/01 General Bank 10/23/00 6.350 7,000,000.00 01 /19/01 General Bank 11 /01 /00 6.380 28,000,000.00 01 /25/01 General Bank 11 /06/00 6.410 30,000,000.00 02/06/01 General Bank 11 /28/00 6.380 10,000,000.00 02/27/01 General Bank 12/08/00 6.150 25,000,000.00 03/08/01 Hanmi Bank 06/27/00 6.210 25,000,000.00 01 /02/01 Hanmi Bank 10/13/00 6.260 25,000,000.00 04/16/01 Manufacturers Bank 11 /06/00 6.430 10,000,000.00 02/05/01 Manufacturers Bank 12/04/00 6.260 10,000,000.00 03/05/01 Manufacturers Bank 09/11 /00 6.290 10,000,000.00 03/12/01 Manufacturers Bank 12/21 /00 5.910 10,000,000.00 03/21 /01 Manufacturers Bank 12/21 /00 5.910 10,000,000.00 03/21 /01 Mellon First Business Bank 12/27/00 5.760 25,000,000.00 03/27/01 Mercantile National Bank 08/17/00 6.400 2,000,000.00 02/13/01 Preferred Bank 10/16/00 6.200 3,000,000.00 01 /16/01 Preferred Bank 10/02/00 6.260 3,000,000.00 01 /16/01 Preferred Bank 11/14/00 6.390 4,000,000.00 02/13/01 Preferred Bank 11/28/00 6.360 7,000,000:00 02/26/01 Preferred Bank 12/18/00 6.050 9,000,000.00 03/19/01 Preferred Bank 12/11/00 6.050 9,000,000.00 06/11/01 Sae Han Bank 10/17/00 6.260 3,000,000.00 04/16/01 24 LOS ANGELES (continued) State Bank of India State Bank of India State Bank of India State Bank of India State Bank of India Western Federal Credit Union Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank Wilshire State Bank MERCEQ County Bank County Bank County Bank County Bank MONTEREY PARK Trust Bank FSB Trust Bank FSB Safe Credit Union Safe Credit Union NORWALK Cerritos Valley Bank Cerritos Valley Bank OAKDALE Oak Valley Community Bank Oak Valley Community Bank Oak Valley Community Bank DEPOSIT PAR MATURITY DATE YIELD AMOUNT DATE 01 /20/00 6.110 2,000,000.00 01 /19/01 12/14/00 6.060 1,500,000.00 06/12/01 11 /07/00 6.330 2,000,000.00 06/12/01 06/12/00 6.230 2,000,000.00 06/12/01 11 /30/00 6.150 2,000,000.00 08/27/01 10/24/00 6.340 25,000,000.00 04/24/01 01 /12/00 6.090 4,000,000.00 01 /12/01 03/17/00 6.230 4,000,000.00 03/19/01 04/18/00 6.090 5,000,000.00 04/18/01 05/17/00 6.370 2,000,000.00 05/17/01 06/07/00 6.290 2,000,000.00 06/07/01 08/31 /00 6.290 4,000,000.00 08/31 /01 07/19/00 6.340 5,000,000.00 01 /18/01 12/11 /00 6.100 5,000,000.00 03/09/01 03/09/00 6.200 5,000,000.00 03/09/01 10/17/00 6.280 5,000,000.00 04/20/01 06/26/00 6.220 2,000,000.00 01 /02/01 10/02/00 6.330 4,000,000.00 04/02/01 10/05/00 6.250 5,000,000.00 01 /17/01 09/06/00 6.330 20,000,000.00 02/02/01 08/30/00 6.410 1,000,000.00 02/26/01 10/05/00 . 6.340 1,000,000.00 04/03/01 08/09/00 6.340 500,000.00 02/05/01 08/21 /00 6.360 500,000.00 03/23/01 03/24/00 6.230 1,000,000.00 03/23/01 25 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE Oak Valley Community Bank 09/29/00 6.240 1,500,000.00 06/05/01 Oak Valley Community Bank ONTARIO 10/31/00 6.390 2,500,000.00 07/09/01 Citizens Business Bank 07/06/00 6.270 5,000,000.00 01/12/01 Citizens Business Bank 08/09/00 6.350 10,000,000.00 02/09/01 Citizens Business Bank 03/08/00 6.240 5,000,000.00 03/08/01 Citizens Business Bank 12/07/00 6.110 20,000,000.00 03/08/01 Citizens Business Bank 12/15/00 6.090 10,000,000.00 03/26/01 Citizens Business Bank 09/20/00 6.240 10,000,000.00 03/26/01 Citizens Business Bank 09/18/00 6.230 10,000,000.00 03/26/01 Citizens Business Bank 10/05/00 6.330 20,000,000.00 04/05/01 Citizens Business Bank 11/06/00 6.410 10,000,000.00 05/07/01 Bank of Santa Clara 03/17/00 6.230 2,000,000.00 03/19/01 Bank of Santa Clara 12/06/00 6.170 20,000,000.00 06/04/01 Bay Area Bank 07/26/00 6.300 5,000,000.00 01 /22/01 Bay Area Bank 11/02/00 6.390 5,000,000.00 05/02/01 Bay Bank of Commerce 11/02/00 6.390 5,000,000.00 05/02/01 Coast Commercial Bank 10/18/00 6.310 5,000,000.00 04/16/01 Coast Commercial Bank 12/11/00 6.070 20,000,000.00 06/11/01 Cupertino National Bank 10/26/00 6.380 10,000,000.00 04/24/01 Cupertino National Bank 11/02/00 6.390 10,000,000.00 05/02/01 Cupertino National Bank 11/02/00 6.390 25,000,000.00 05/02/01 Cupertino National Bank 12/01 /00 6.250 20,000,000.00 06/01 /01 Cupertino National Bank 12/18/00 6.030 10,000,000.00 06/19/01 Golden Gate Bank 12/01 /00 6.250 9,000,000.00 06/01 /01 Mid -Peninsula Bank 09/20/00 6.230 10,000,000.00 03/19/01 Mid -Peninsula Bank 11/02/00 6.390 15,000,000.00 05/02/01 Mid -Peninsula Bank 11/02/00 6.390 20,000,000.00 05/02/01 Mid -Peninsula Bank 12/01/00 6.250 5,000,000.00 06/01/01 Peninsula Bank of Commerce PALOS VERDES ESTATES 12/11/00 6.070 15,000,000.00 06/11/01 Malaga Bank 07/19/00 6.350 2,000,000.00 01/19/01 Malaga Bank 09/26/00 6.270 2,000,000.00 06/04/01 NAME PASADENA Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank Courts and Records FCU Wescom Credit Union Bank of Petaluma Bank of Petaluma Pacific West National Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank El Dorado Savings Bank POMONA PFF Bank and Trust PFF Bank and Trust Bank of the Sierra Plumas Bank Plumas Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT SATE 01 /10/00 6.040 20,000,000.00 01 /12/01 10/27/00 6.350 5,000,000.00 04/25/01 12/08/00 6.080 5,000,000.00 06/22/01 06/22/00 6.110 5,000,000.00 06/22/01 12/15/00 6.000 10,000,000.00 06/22/01 _ 08/11 /00 6.190 15,000,000.00 08/13/01 12/13/00 6.120 2,000,000.00 03/13/01 11 /16/00 6.410 10,000,000.00 05/15/01 02/07/00 6.210 1,000,000.00 02/07/01 02/07/00 6.050 2,500,000.00 06/05/01 11 /30/00 6.320 1,000,000.00 05/29/01 02/08/00 6.230 5,000,000.00 02/08/01 03/22/00 6.250 5,000,000.00 03/22/01 04/13/00 6.150 5,000,000.00 04/13/01 05/02/00 6.180 5,000,000.00 05/02/01 06/16/00 6.150 5,000,000.00 06/18/01 03/10/00 6.450 10,000,000.00 03/09/01 12/01 /00 6.350 8,000,000.00 08/28/01 07/28/00 6.300 10,000,000.00 12/12/00 6.080 12/12/00 6.060 27 2,000,000.00 2,000,000.00 01 /24/01 03/13/01 06/12/01 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE RANCHO SANTA FE La Jolla Bank 08/11 /00 6.340 15,000,000.00 02/07/01 La Jolla Bank 09/26/00 6.310 10,000,000.00 03/26/01 La Jolla Bank RED BLUFF 11 /28/00 6.380 15,000,000.00 05/25/01 - Tehama Bank 06/28/00 6.260 5,000,000.00 01 /05/01 Tehama Bank REDDING 09/08/00 6.300 4,000,000.00 06/01/01 North Valley Bank REDWOOD CITY 09/18/00 6.230 3,000,000.00 03/19/01 Provident Central Credit Union RICHMOND 11/03/00 6.390 20,000,000.00 05/04/01 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 Mechanics Bank 05/05/00 6.190 10,000,000.00 05/07/01 Mechanics Bank 06/12/00 6.230 10,000,000.00 06/12/01 Mechanics Bank 08/11/00 6.190 10,000,000.00 08/13/01 Mechanics Bank SACRAMENTO 10/13/00 5.980 10,000,000.00 10/12/01 American River Bank 09/26/00 6.300 3,000,000.00 03/26/01 American River Bank 12/27/00 5.680 1,000,000.00 04/06/01 American River Bank 10/02/00 6.310 1,000,000.00 04/17/01 American River Bank 06/26/00 6.180 1,000,000.00 06/26/01 Bank of Sacramento 02/16/00 6.240 1,000,000.00 02/16/01 Bank of Sacramento 03/03/00 6.290 500,000.00 03/05/01 Bank of Sacramento 12/28/00 5.770 1,000,000.00 06/26/01 Golden One Credit Union 03/24/00 6.180 20,000,000.00 03/23/01 Golden One Credit Union 10/27/00 6.360 10,000,000.00 04/25/01 Golden One Credit Union 06/08/00 6.230 20,000,000.00 06/08/01 28 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT SATE Merchants National Bank 07/24/00 6.270 2,000,000.00 01 /22/01 Merchants National Bank 10/24/00 6.330 -2,000,000.00 04/23/01 River City Bank 10/06/00 6.260 5,000,000.00 01 /04/01 River City Bank 08/18/00 6.370 5,000,000.00 02/26/01 River City Bank 10/27/00 6.380 3,000,000.00 04/25/01 Sanwa Bank of California 07/14/00 6.280 10,000,000.00 01/10/01 Sanwa Bank of California 02/07/00 6.180 7,000,000.00 02/09/01 Sanwa Bank of California 08/22/00 6.350 10,000,000.00 02/23/01 Sanwa Bank of California 08/15/00 6.360 50,000,000.00 02/23/01 Sanwa Bank of California 07/26/00 6.290 5,000,000.00 07/26/01 Union Bank of California 09/25/00 6.240 100,000,000.00 03/26/01 Union Bank of California 10/24/00 6.330 50,000,000.00 04/23/01 Union Bank of California 10/31/00 6.390 100,000,000.00 04/30/01 Union Bank of California - 11/14/00 6.360 50,000,000.00 05/15/01 Union Bank of California 11 /21 /00 6.360 100,000,000.00 05/21 /01 Business Bank of California 08/09/00 6.350 12,000,000.00 02/05/01 First United Bank 08/07/00 6.320 1,000,000.00 02/16/01 First United Bank 12/01 /00 6.200 1,500,000.00 06/01 /01 First United Bank 06/21 /00 6.110 1,500,000.00 06/21 /01 Mission Federal Credit Union 09/21/00 6.190 10,000,000.00 01/11/01 Mission Federal Credit Union 11/30/33 6.330 10,000,000.00 05/25/01 Neighborhood National Bank 02/02/00 6.240 1,000,000.00 02/09/01 Neighborhood National Bank 11 /21 /00 6.380 1,000,000.00 05/22/01 Santel Federal Credit Union 12/05/00 6.170 5,000,000.00 03/05/01 Santel Federal Credit Union 12/05/00 6.150 5,000,000.00 06/04/01 Santel Federal Credit Union 12/21/00 5.860 3,000,000.00 06/22/01 Scripps Bank 12/12/00 6.090 25,000,000.00 03/14/01 Bank of Canton California 07/21 /00 6.310 5,000,000.00 01 /12/01 Bank of Canton California 05/31/00 6.430 10,000,000.00 01/12/01 Bank of Canton California 08/09/00 6.320 10,000,000.00 02/05/01 Bank of Canton California 09/13/00 6.220 5,000,000.00 05/22/01 29 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE Bank of Canton California 05/22/00 6.230 10,000,000.00 05/22/01 Bank of Canton California 11/03/00 6.360 5,000,000.00 06/15/01 Bank of Canton California 11/02/00 6.360 5,000,000.00 06/15/01 Bank of Canton California 11/09/00 6.380 10,000,000.00 06/15/01 Bank of Canton California 09/01/00 6.260 20,000,000.00 08/31/01 Bank of the West 09/01 /00 6.340 50,000,000.00 01 /08/01 Bank of the West 08/21 /00 6.350 50,000,000.00 02/23/01 Bank of the West 04/14/00 6.170 50,000,000.00 04/16/01 Bank of the West 05/01 /00 6.140 25,000,000.00 04/27/01 Bank of the West 04/28/00 6.140 51,500,000.00 04/27/01 Bank of the West 05/05/00 6.190 25,000,000.00 05/04/01 Bank of the West 05/16/00 6.400 25,000,000.00 05/18/01 Bank of the West 05/25/00 6.230 142,000,000.00 05/25/01 Bank of the West 07/03/00 6.080 34,000,000.00 07/06/01 California Federal Bank 01 /05/00 6.080 8,000,000.00 01 /05/01 California Federal Bank 07/17/00 6.290 100,000,000.00 01/17/01 California Federal Bank 11/20/00 6.380 50,000,000.00 02/21/01 California Pacific Bank 09/20/00 6.220 11000,000.00 03/19/01 California Pacific Bank 12/19/00 5.920 1,000,000.00 06/18/01 Millennium Bank 07/31 /00 6.340 1,000,000.00 01 /29/01 Millennium Bank 08/30/00 6.420 1,000,000.00 02/26/01 Millennium Bank 11 /28/00 6.400 1,000,000.00 05/30/01 Millennium Bank 10/31/00 6.410 2,000,000.00 07/02/01 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 Trans Pacific National Bank 03/17/00 6.250 800,000.00 03/19/01 United Commercial Bank 10/13/00 6.260 10,000,000.00 01/12/01 United Commercial Bank 07/26/00 6.300 20,000,000.00 01 /22/01 United Commercial Bank 08/10/00 6.350 20,000,000.00 02/06/01 United Commercial Bank 03/20/00 6.240 25,000,000.00 03/20/01 United Commercial Bank 10/06/00 6.320 30,000,000.00 04/04/01 United Commercial Bank 12/07/00 6.050 10,000,000.00 06/05/01 United Commercial Bank 09/01 /00 6.320 20,000,000.00 08/31 /01 Heritage Bank of Commerce 08/21 /00 6.360 2,000,000.00 02/16/01 Meriwest Credit Union 07/26/00 6.310 14,000,000.00 01 /22/01 Meriwest Credit Union 10/10/00 6.380 8,000,000.00 04/09/01 Santa Clara Co. Fed. C.U. 08/10/00 6.340 15,000,000.00 02/06/01 30 DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE First Bank of San Luis Obispo 10/10/00 6.270 1,000,000.00 01 /08/01 First Bank of San Luis Obispo 11 /01 /00 6.380 3,600,000.00 01 /30/01 First Bank of San Luis Obispo 11/06/00 6.430 2,000,000.00 02/09/01 First Bank of San Luis Obispo 11 /20/00 6.380 2,500,000.00 02/20/01 First Bank of San Luis Obispo 12/18/00 6.070 5,000,000.00 03/19/01 First Bank of San Luis Obispo 10/23/00 6.330 1,000,000.00 04/20/01 Mission Community Bank 10/10/00 6.270 1,000,000.00 01 /10/01 Mission Community Bank 01 /10/00 6.060 500,000.00 01 /12/01 Mission Community Bank 09/12/00 6.280 1,000,000.00 03/12/01 Mission Community Bank 12/11/00 6.070 1,000,000.00 06/12/01 San Luis Trust Bank 07/11 /00 6.240 350,000.00 01 /08/01 San Luis Trust Bank 08/04/00 6.380 1,000,000.00 01 /31 /01 East West Federal Bank 10/05/00 6.260 12,000,000.00 01/05/01 East West Federal Bank 11 /02/00 6.410 35,000,000.00 02/01 /01 East West Federal Bank 05/04/00 6.200 35,000,000.00 05/04/01 East West Federal Bank 11/13/00 6.390 38,000,000.00 05/18/01 Westamerica Bank 08/07/00 6.330 25,000,000.00 01/30/01 Westamerica Bank 07/31 /00 6.310 25,000,000.00 01 /30/01 Westamerica Bank 09/19/00 6.220 25,000,000.00 03/22/01 Westamerica Bank 04/18/60 6.080 25,000,000.00 04/18/01 Westamerica Bank 05/15/00 6.400 50,000,000.00 05/15/01 Westamerica Bank 10/25/00 6.330 25,000,000.00 07/13101 Westamerica Bank 07/14/00 6.080 25,000,000.00 07/13/01 EBTEL Federal Credit Union 07/06/00 6.240 1,750,000.00 01 /05/01 EBTEL Federal Credit Union 10/06/00 6.340 1,750,000.00 04/04/01 FNB of Central California 07/10/00 6.230 10,000,000.00 01/08/01 FNB of Central California 09/07/00 6.310 10,000,000.00 03/06/01 FNB of Central California 10/18/00 6.270 10,000,000.00 04/17/01 31 DEPOSIT PAR MATURITY DATE YIELD AMOUNT DATE FNB of Central California 08/07/00 6.350 10,000,000.00 05/01 /01 Santa Barbara Bank & Trust 07/14/00 6.290 10,000,000.00 01 /10/01 Santa Barbara Bank & Trust 07/21 /00 6.250 10,000,000.00 01 /22/01 Santa Barbara Bank & Trust 08/11 /00 6.210 10,000,000.00 03/09/01 Santa Barbara Bank & Trust 09/08/00 6.330 10,000,000.00 04/06/01 Santa Barbara Bank & Trust 10/10/00 6.340 10,000,000.00 05/03/01 Santa Barbara Bank & Trust 06/09/00 6.260 10,000,000.00 06/08/01 Santa Barbara Bank & Trust 07/07/00 6.080 10,000,000.00 07/06/01 Valencia Bank & Trust 09/22/00 6.230 1,000,000.00 03/21 /01 Valerm is Bank & Trust ROSA 09/22/00 6.230 3,000,000.00 03/21 /01 AANTA Community First Credit Union 10/02/00 6.270 2,000,000.00 01/04/01 National Bank of the Redwoods 10/31 /00 6.360 5,000,000.00 02/01 /01 National Bank of the Redwoods 10/30/00 6.390 10,000,000.00 04/30/01 Redwood Credit Union 09/06/00 6.350 17,000,000.00 03/05/01 Pacfic State Bank 07/18/00 6.340 1,000,000.00 01 /12/01 Pacific State Bank 10/16/00 6.270 1,000,000.00 04/16/01 Union Safe Deposit Bank 08/07/00 6.360 10,000,000.00 02/05/01 Union Safe Deposit Bank 11 /16/00 6.410 10,000,000.00 02/21 /01 Union Safe Deposit Bank 03/15/00 6.260 10,000,000.00 03/15/01 Union Safe Deposit Bank 04/13/00 6.200 10,000,000.00 04/13/01 Union Safe Deposit Bank 11/09/00 6.430 10,000,000.00 05/08/01 Washington Mutual Bank 07/14/00 6.120 15,000,000.00 01 /23/01 Washington Mutual Bank 07/14/00 6.250 15,000,000.00 01 /23/01 Washington Mutual Bank 08/10/00 6.330 15,000,000.00 02/22/01 Washington Mutual Bank 02/18/00 6.210 15,000,000.00 02/22/01 Washington Mutual Bank 09/15/00 6.180 30,000,000.00 03/14/01 Washington Mutual Bank 10/27/00 6.360 30,000,000.00 05/01 /01 Washington Mutual Bank 11 /13/00 6.380 30,000,000.00 06/01 /01 Washington Mutual Bank 12/28/00 5.690 15,000,000.00 06/26/01 32 L D -4 e DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT DATE SUNNYVALE Asiana Bank 10/06/00 6.260 1,500,000.00 01/04/01 China Trust Bank (USA) 10/06/00 6.260 10,000,000.00 01 /04/01 _ China Trust Bank (USA) 11/13/00 6.420 10,000,000.00 02/13/01 China Trust Bank (USA) 12/04/00 6.260 20,000,000.00 03/05/01 China Trust Bank (USA) 12/13/00 6.100 5,000,000.00 03/13/01 China Trust Bank (USA) 10/23/00 6.330 15,000,000.00 04/23/01 South Bay Bank 07/17/00 6.320 2,000,000.00 01/16/01 South Bay Bank 07/31 /00 6.330 1,000,000.00 01 /29/01 South Bay Bank 08/28/00 6.390 3,000,000.00 03/02/01 South Bay Bank 12/12/00 6.090 2,000,000.00 03/12/01 South Bay Bank 10/31/00 6.410 2,000,000.00 05/04/01 South Bay Bank TUSTIN 12/21/00 5.890 2,000,000.00 05/04/01 First Fidelity Investment & Loan 07/27/00 6.290 4,000,000.00 01/25/01 First Fidelity Investment & Loan 08/10/00 6.340 6,000,000.00 02/06/01 First Fidelity Investment & Loan 03/01 /01 6.210 15,000,000.00 03/01 /01 First Fidelity Investment & Loan 10/17/00 6.270 10,000,000.00 04/20/01 Sunwest Bank 07/31/00 6.310 2,500,000.00 01/25/01 Sunwest Bank 07/27/00 6.290 3,300,000.00 01/25/01 Sunwest Bank 09/08/00 6.300 1,000,000.00 03/09/01 Sunwest Bank 10/12/00 6.320 3,500,000.00 04/10/01 Sunwest Bank VACAVILLE 10/20/00 6.310 2,500,000.00 04/20/01 Travis Credit Union VISALIA 09/06/00 6.350 40,000,000.00 03/05/01 Bank of Visalia 08/01/00 6.340 1,000,000.00 01/30/01 Bank of Visalia 10/30/00 6.360 2,000,000.00 01/30/01 Monterey Bay Bank 09/29/00 6.220 8,000,000.00 01 /05/01 33 TIME DEPOSITS DEPOSIT WATSONVILLElcontinuedl Monterey Bay Bank 12/18/00 Ousker City Bank 10/02/00 Quaker City Bank 07/12/00 Quaker City Bank 10/02/00 Quaker City Bank 04/18/00 Quaker City Bank 09/08/00 Quaker City Bank 12/27/00 6.070 PAR AMOUNT (�) 6.250 7,000,000.00 6.260 7,000,000.00 6.300 8,000,000.00 6.090 8,000,000.00 6.300 25,000,000.00 5.670 10,000,000.00 TOTAL TIME DEPOSITS FOR DECEMBER 2000: 4,340,845,000.00 MATURITY DATE 03/22/01 01 /08/01 01 /08/01 04/06/01 04/18/01 05/31 /01 06/27/01 34 BANK DEMAND DEPOSITS DECEMBER 2000 ($ in thousands) DAILY BALANCES DAY OF BALANCES MONTH PER BANKS 1 $ 172,474 2 172,474 3 172,474 4 445,678 5 303,719 6 82,955 7 196,012 8 276,455 9 276,455 10 276,455 11 314,803 12 1499270 13 243,425 14 2809082 15 637,634 16 637,634 17 637,634 18 683,912 19 274,821 20 349,246 21 424,208 22 130,039 23 130,039 24 130,039 25 130,039 26 906,621 27 615,297 28 435,783 29 471,657 30 471,657 31 471,657 AVERAGE DOLLAR DAYS $ 3519634 aL WARRANTS OUTSTANDING 2,656,673 2,656,673 2,656,673 2,107,196 2,118,047 1,872,644 2,061,889 2,090,190 2,090,190 2,090,190 1,765,055 1,6999638 1,882,143 197849073 2,009,280 2,015,219 2,015,219 1,839,495 1,709,350 1,653,254 1,8119818 1,590,012 1,590,012 1,590,012 1,590,012 1,737,253 1,885,615 1,832,288 2,032,475 2,0329475 2,037,027 8L The prescribed bank balance for December was $397,486. This consisted of $174,833 in compensating balances for services, balances for uncollected funds of $231,566 and a deduction of $8,913 for November delayed deposit credit. 35 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1618 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on December 20, 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 $ 172,538,000 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 intere t- bearing deposits in banks and savings and loan associations as follows: s Time Deposits in Various Financial Institutions From To Transactions In Securities (section 16430)' (sections 16503a and 16602)' Estimated ( 1) 12/18/2000 12/22/2000 $ 1,241,000,000 $ 36,623,155,000 $ Total (2) 12/25/2000 12/29/2000 $ 1,600,600,000 $ 38,223,755,000 $ 4,296,845,000 $ 40,920,000,000 (3) 01/01/2001 01/05/200, $ 1,413,300,000 $ 39,637,055,000 $ 4,296,845,000 $ 42,520,600,000 (4) 01/08/2001 01/12/200, $ 25,100,000 $ 39,662,155,000 $ 4,296,845,000 $ 43,933,900,000 (5) 01/15/2001 01/19/2001 $ 1,490,800,000 $ 41,152,955,000 $ 4,296,845,000 $ 43,959,000,000 (6) 01 /22/2001 01 /26/200, $ 825, 500, 000 $ 41, 978,455, 000 $ 4,296,845,000 $ 45,449,800,000 (7) 01/29/2001 02/02/2001 $ (574,800,000) $ 41,403,655,000 $ 4, 296, 845, 000 $ 46, 275, 300.000 (8) 02/05/2001 02/09/2001 $ 867,300,000 $ 42,270,955,000 $ 4,296,845,000 4,296,845,000 $ 45,700,500,000 (9) 02/12/2001 02/16/2001 $ 300,500,000 $ 42,571,455,000 $ $ 46,567,800,000 (10) 02/19/2001 02/23/2001 $ 588,900,000 $ 43,160,355,000 $ 4,296,845,000 $ 46,868,300,000 4,296,845,000 $ 47,457,200,000 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 $ 172,538,000. POOLED MONEY INVESTMENT BOARD: Chairperson Member Dated: December 20, 2000 ' Government Code 36 Member BOARD MEMBER ITEMS Barbara T Irwin 760 772 1194 03/16/01 02:08P P.001 Rep. Baker Releases GAG Study ShoeShowing lators 'sack' Powers Of Bank Rcguh.. Page 1 o F 1 Rep. Baker Releases GAO SCSlE Regulators 'Lack' Powers Of Bank Regulators March 1, 2DO1 WASHINGTON -- U.5. Rep, Richard H. Baker, R Baton Rouge, released today a government report he hoped would provide momentum of greater objectivity to his Call for stronger oversight of the housing govern merrNponsored enterprises (GSES). Baker, who chairs the House Capital Markets subcommittee with jurisdiction over the GSEs, made public a stuffy by the non partisan General Accounting Office (GAO), which concluded that GSC regulators lack Certain key enforcement and prompt corrective -action (PCA) authorities of bank regulators_ For more than a year 13aker has led the charge in Congress for greater scrutiny of the activities and financial safety and soundness of the mortgage finance glants, whose Close ties to the federal government, could, in the event of a major financial problem, put Arnerlcan taxpayers at risk. The GAO review requested by Baker Is a followuf) report of a highly attended September Capital Markets Subcommittee 'roundtable" discussion on the issue of GSE regulatory reform involving a wide array of federal agencies, academics, market participants, consumer advocates, taxpayer watchdogs, and the GSEs themselves. "The great contribution of the roundtable, what I feel emerged from it, was a general consensus that the GSEs do in fact need stronger oversight, and that, more specifically, two of the largest financial institutions in America should at least have more 'bank -like' supervision," Baker said. "The GAO report puts an objective stamp on that general Impression and points out the steps we need to take to make the GSE regulators comparable in strength to bank regulators," Baker added. Baker was quick to point out that the GAO review should In no way be seen as a criticism of the operation and management of the current GSE regulators, but rather as an indication of the limitations placed upon them in respect to the powers they have been provided. Baker, who is in the process of drafting a bill to reform WE regulation, says he will use the GAO study as a guide to ,-2ddress the shortcomings in the existing authorities granted under the current regulatory structure. "we already understand the resource shortfalls facing the proper monitoring of the GSEs. But GA(3; report confirms that the legal authorities of the GSE regulators, particularly OFHEO as the regulator of Fannie Mae and Freddie Mac, are significantly weaker than federal bank regulators for taking action when capitalization and safety and soundness Issues arise," Baker said. Among other findings concerning Baker, the GAO report found that "OFHEO lacks authority to remove officers and directors, place an enterprise into receivership, or bring suit on the agency's behalf (OFHEO must rely on the Attorney General). These differences, In certain cases, may cause OFHEO to rely on less direct measures"; • "There is no specific statutory authority for OFHEO to issue a C&p (cease and desist) order if an enterprise were to violate conditions imposed in writing"; and • "OFHEO's PCA scheme, as compared to the bank regulators,' may provide for regulatory action later (in terms of capital classification) than the bank regulators PCA scheme, has fewer required actions imposed, and provides OFHEO more discrotion in determining specifically what action to take_" Each of these concerns will be addressed by Baker and the subcommittee in the coming months.. Text of GAO report,.(rcquir(,s.Acrobat Reader) http://www.mbaa.org/w&sh_update/L041/news/0302a.html 3/16/01 03-16-01 14:14 RECEIVED FROM:760 772 1194 P-01 ` egulators Rep. Baker Releases GAO Study Showin G Rep. Baker Releases GAO Stud Showing GSE Regulators March 1, 2001 'Lack' Powers Of Bank RegulL. Page 1 of 1 Regulators 'Lack' Powers Of Bank WASHINGTON -- U.S. Rep. Richard H. Baker, R Baton Rouge, released today a government report he hoped would provide momentum of greater objectivity to his call for stronger oversight of the housing govern mentsponsored enterprises (GSES). Baker, who chairs the House Capital Markets subcommittee with jurisdiction over the GSEs, made public a study by the non partisan General Accounting Office (GAO), which concluded that GSE regulators lack certain key enforcement and prompt corrective -action (PCA) authorities of bank regulators. For more than a year Baker has led the charge in Congress for greater scrutiny of the activities and financial safety and soundness of the mortgage finance giants, whose close ties to the federal government, could, in the event of a major financial problem, put American taxpayers at risk. The GAO review requested by Baker is a follow-up report of a highly attended September Capital Markets Subcommittee "roundtable" discussion on the issue of GSE regulatory reform involving a wide array of federal agencies, academics, market participants, consumer advocates, taxpayer watchdogs, and the GSEs themselves. "The great contribution of the roundtable, what I feel emerged from it, was a general consensus that the GSEs do in fact need stronger oversight, and that, more specifically, two of the largest financial institutions in America should at least have more bank -like' supervision," Baker said. "The GAO report puts an objective stamp on that general impression and points out the steps we need to take to make the GSE regulators comparable in strength to bank regulators," Baker added. Baker was quick to point out that the GAO review should in no way be seen as a criticism of the operation and management of the current GSE regulators, but rather as an indication of the limitations placed upon them in respect to the powers they have been provided. Baker, who is in the process of drafting a bill to reform GSE regulation, says he will use the GAO study as a guide to address the shortcomings in the existing authorities granted under the current regulatory structure. "We already understand the resource shortfalls facing the proper monitoring of the GSEs. But GAO report confirms that the legal authorities of the GSE regulators, particularly OFHEO as the regulator of Fannie Mae and Freddie Mac, are significantly weaker than federal bank regulators for taking action when capitalization and safety and soundness issues arise," Baker said. Among other findings concerning Baker, the GAO report found that "OFHEO lacks authority to remove officers and directors, place an enterprise into receivership, or bring suit on the agency's behalf (OFHEO must rely on the Attorney General). These differences, in certain cases, may cause OFHEO to rely on less direct measures"; "There is no specific statutory authority for OFHEO to issue a C&D (cease and desist) order if an enterprise were to violate conditions imposed in writing"; and "OFHEO's PCA scheme, as compared to the bank regulators,' may provide for regulatory action later (in terms of capital classification) than the bank regulatory PCA scheme, has fewer required actions imposed, and provides OFHEO more discretion in determining specifically what action to take." Each of these concerns will be addressed by Baker and the subcommittee in the coming months. Text of GAO report (requires Acrobat Reader) http://v;xxw.mbaa.org/wash,._update/2001/news/0302a.html 3/16/01 . i i i � � m I I I a io to 0 . A a V a Z a R 3� F 'O m a O O O O O O O O DIE Di" DX)M D&WE O19ts D/6/£ On/c a= 019trz olm onlz o/9zn. omt/t ORM 0/91& emm L OWU lmtrzt KWSM L IOWU WMA L TOIL L1 t L MOM& XKM )O/LM >p10M MUM )01910L )016Z16 )01ZZ/6 D01St/6 DO/M DOfkM DOMM D0 W9 D0/L U9 omm 001OZ11 001MIL 001► 1L oauL oomm oO►ezm tl/ C O _d a O Z w a Q Q Q Y Y Y 4 c a lsT� I I I I I a IY 0010 0 40, OP W v a � 4 w w _ z e x I I I M .0 i �orsn WJ106JE wAue Wwm &Owz MW =W umt Oofsll OOMM& oar M OOM& mWU Owl& L MLMt OWM& Owt t MLWI OOmmt OW WOL oolm omm OOr1Bs mm OORW4 OonM om" OOWL MWL WNWL OWIUZ o"I'M � 9 m s Z s I I I iu 0 a w E 0 V a 0 z H a e a cc v 0 O O O O O O O O of&& orzl£ oleuz or�trz .on/z .o/9zn .o/6tn .OfUlt .orsn DO/6 = io/ IU )OISt= )O/BILt )o/tat )O/►z/t t )Olzwt L )O/ot/tt )O/S/tt DO/UM Mmlot DO/f tlot xmmt DOMM DOMM DO/SL/6 DO/M DO/tl6 DOM= DONLIS Do/ttle Dolts DOIWL OOlWL OOl►LlL oauL oomm oolez/s MIUM &ONWOL L0/8L/8 MOM WOW MUM Oo/BL/b4 00/9L/OL O0/9L/9 oo/oL/9 OO/9L14 OOISLII 66I8L/Zt 6619L/OL 66/9L/9 66/9L19 6618M 66/9M 96/8L/ZL 9619WOL 96/9L/8 96I9L/9 96M& 96/SL/S L6MM& MIUM L6/8L19 L6/94/9 MI8L16 L6/8L/L 9619LISL 9 NW% 96/9L/9 9618L/9 96/9 M 96MM S61OWU 56/941oL S6/9L/8 MOM SM&IV S6/ M nm&/ZL r6/9L/oL i6/8L/8 *M&19 f NUO ►6I9 L/Z o ado m v 7� 3 N a r r O O O O O O C1 T a 0 4bf 4 4114� Q" MEMORANDUM TO: Investment Advisory Board Members FROM: John Falconer, Finance Director '% DATE; March 14, 2001 RE: CMTA Conference - April 23 - 27 Attached please find the schedule of events for the above conference. The pre- conference begins on Monday, April 23, 2000 and the actual conference begins on Wednesday, April 25, 2000. Since the conference is in Riverside it was the intent of staff to commute on a daily basis to the conference. If you are interested in attending the conference, please contact me as soon as possible at 760 - 777-7150 so we can process the check and fill out the conference registration form. Thank you. CMTA 2001 Conference Registration Form Riverside Convention Center, Riverside April 23-24 2000 - Pre -Conference April 25-27 2000 - Conference You must be a current CMTA member (Active/Government Associate/Sustaining) to register. If you need to verify that your membership is current, please contact Fran Medema at CMTA's Sacramento office at (916) 658- 8209. If you have any questions regarding conference registration call City of Riverside at (909) 826-5660. Please use a separate form for each registrant (photocopies accepted.) (This form is not valid for Commercial Associate members.) Name (Please Print or Type) Title Organization Name you prefer on badge Mailing Address City State Phone Fax Is this your first CMTA conference? (yes or no) Thursday Banquet Beef Seafood Registration Fees Pre -Conference Seminar [Active or Government Associate] Pre -Conference Seminar only Pre -Conference Seminar if also attending conference Conference Active or Government Associate Includes all meals, receptions & Thursday Installation Banquet Second registrant from same organization Includes all meals, receptions & Thursday Installation Banquet Zip Spouse/Guest Name Special dietary needs? (yes or no) Early (on or before 3/9/01) (on or before 4/2/01) Regular (after 4/2/01) Early (on or before 3/9/01) (on or before 4/2/01) Regular (after 4/2/01) Daily Conference Registration ❑ Wednesday ❑ Thursday Daily Rate x Available only in addition to fully paid conference registration Includes breakfast & lunch only Additional Meals Spouses & guests Events Golf Tournament (see flyer for details) Mission Inn & Heritage House Tours (see flyer for details) Wednesday Lunch x Thursday Lunch x Thursday Banquet x Mission Inn Tour x Total Fees $ 115.00 $ 105.00 $ 225.00 $ 250.00 $ 260.00 $ 200.00 $ 225.00 $ 260.00 $ 100.00 $ 25.00 $ 25.00 $ 50.00 $ 20.00 Amount $ $ $ $ Please make checks payable to "CMTA 2001 Conference." Mail to: CMTA Registration, c/o City of Riverside, Finance Department, 3900 Main St., Riverside, CA 92522. Advance registrants unable to attend may receive a refund of the registration fee less $25.00 processing fee by submitting a written request to CMTA at the same address or fax (909) 826-5683 by April 13, 2001. No refunds will be made if requested after that date. Substitute attendees will be accepted at any time. CITY OF RIVERSIDE - Finance Dept. 9 3900 Main St. 9 Riverside, CA 92522 CONFERENCE REGISTRATION INFORMATION Please complete the CMTA 2001 Conference Registration form and mail it with your payment. Be sure to include payment for additional meals and special events according to the information provided on the form. Once your organization has paid for one full conference registration, your organization is eligible to take advantage of a single day registration for additional staff members for either Wednesday or Thursday of the conference at only $100 per person per day. DUE DATES March 9, 2001 ............................ Early Registration Fee April 2, 2001 .............................. Regular Registration Fee After April 2, 2001 ..................... Late Registration Fee Hotel Accommodations The "main" conference hotel is the Mission Inn. Hotel registration must be received by March 24, 2001 in order to receive the special CMTA rate of $79.00 single and $94.00 double per night. Hotel reservations must be made by calling the Mission Inn Hotel directly at (800) 843-7755 or (909) 784-0300 X850. Don't delay in making your hotel reservations; there are only a limited number of CMTA rooms available. The Holiday Inn Select/Riverside is the "Overflow" hotel. Our special group rate is $79.00 single, $89.00 double, per night if received by March 23, 2001. You can reach Holiday Inn Select at (909) 784-8000. DON'T FORGET TO CALL. Special Events If you or your guest plan on participating in either of the special events (Golf, Mission Inn and Heritage House Tour), be sure to complete the corresponding form and mail it with your payment as indicated on the event flyer. When You Arrive The CMTA registration desk will be located at the front entrance of the Riverside Convention Center (3443 Orange Street). Please see attached map. Staff will be available daily to assist you beginning on Monday, April 231h, from 7:30AM — 5:OOPM. At the CMTA registration desk you will find the latest information on the conference, as well as on the CMTA message board. Directions to the Mission Inn Hotel By air — Ontario International Airport is approximately 40 minutes away. Both hotels offer a complimentary shuttle service from and to the Ontario International Airport. Please call the Mission Inn at (909) 784-0300 or Holiday Inn Select at (909) 784-8000 72 hours in advance. Please be prepared to provide them with the flight number, airline and time and date of arrival. By Ground — Ontario International Airport, take I-10 east to the 15 south to the 60 east. Proceed on the 60 east and exit Market Street. Bear right and continue on Market to Mission Inn Avenue. Turn left onto Mission Inn Avenue and the hotel will be on your left (3649 Mission Inn Avenue). Self Park is $4.00 per night and Valet Parking is $8.00 per night. Questions By phone: (909) 826-5660 By Fax: (909) 826-5683 By E-mail: ncorona@ci.riverside.ca.us Map not to scale to Orange County MISSION INN HOLIDAY INN SELECT RIVERSIDE CONVENTION CENTER 3649 Mission Inn Avenue 3400 Market 3443 Orange Street (909) 784-0300 (909) 784-8000 (909) 787-7950 DIRECTIONS TO THE MISSION INN Ontario/Pasadena/Los Angeles Area 10 East to 15 South (San Diego) to 60 East (Riverside) Exit Market Street, turn right Go to Mission Inn Avenue, turn left Mission Inn is on the left LAX Airport 105 East to 605 North to 60 East (Riverside) Exit Market Street, turn right Go to Mission Inn Avenue, turn left Mission Inn is on the left Orange County/Beach Cities 91 East (Riverside) Exit University Avenue/Downtown, turn left Go 3 blocks to Orange Street, turn right On the corner of Mission Inn Avenue and Orange San Bern ardino/Victorville Area 215 South (becomes 91) Exit Mission Inn Avenue/Downtown, turn right Go 3 blocks to Mission Inn (on right) San Diego/Temecula 15 North to 91 East (Riverside) Exit University Avenue/Downtown, turn left Go 3 blocks to Orange Street, turn right Go 1 block to Mission Inn Avenue, turn left On immediate right Parking: Valet: Enter Mission Inn driveway Self Parking: Right on Orange Street, Left on 6`h, Garage on right CMTA ANNUAL CONFERENCE DRAFT Pre -Conference 4/23/01 Monday 1:00-3:15 Feel the Force — Your Agency Investments Now and in the Future Freddie Mac Federal Home Loan Bank- John Darr, Managing Director of Finance Farm Credit Bank- Doug Williams, Managing Director of Finance Sallie Mae- Guido Van der Vin, Managing Director FNMA- Emily Lange, Analyst 3:15-3:30 Break 3:30 - 4:15 Standard & Poor's Rating Agency 4:15 — 5:00 Corporate Issuer 4/24/01 Tuesday 8:00 —9:30 Broker -Dealer Relationships (Panel Discussion) Roger Marumoto, So. Calif. Metropolitan Water District William Blackwill, Salomon Smith Barney Michele Lund, City of Oceanside Tony Garcia, Wells Fargo Bank 9:45 —11:45 Conquering the Dark Side of Investing (Panel Discussion) Custodian - BNY Western Trust Co. Trader —Robert Matelwich, Salomon Smith Barney Salesperson - Moderator — City 12:00pm Golf Mission Inn Tour Heritage House Tour Draft Conference 4/26/01 Thursday 8:00—10:15am On-line Investing in the 21s' Century Girard Miller, ICMA Retirement Corporation 10:30 —11:45 The Future of Technology George Kenny, Shepherd Ventures 12:00 —1:45pm Keynote Luncheon Speaker Gary Schlossberg, Economist Wells Fargo Bank 2:00 — 3:00 Benchmarking & Portfolio Monitoring Rick Philips, Mgr. of Treasury Finance Clark County, NV 3:00 — 3:15 Break 3:15 — 4:00 Nuts & Bolts 4:00 — 4:30 Nuts & Bolts Wrap-up 4:30 — 5:30 Photo Session 6:00 Reception 7:15 Dinner 8:00 Opening & Installation 9:00 —12:00 Dancing