2003 04 09 IABP.O. Box 1504
78-495 CALLE TAMPICO (760) 7 7 7 - 7 0 0 0
LA QUINTA CALIFORNIA 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
April 9, 2003 - 5:30 P.M.
Board Member Felice(Video Conference Location) Cisco Systems
170 West Tasman Dr., Bldg. 17, San Jose, California, 95134
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
11 PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on March 12, 2003, for the
Investment Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for February 2003
B. Consideration of Fiscal Year 2003/04 Investment Policies
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
March 2003
B. Pooled Money Investment Board Reports — January 2003
VII BOARD MEMBER ITEMS
Vill ADJOURNMENT
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: April 9, 2003
ITEM TITLE:
Transmittal of Treasury Report
for February 28, 2003
BACKGROUND:
Attached please find the Treasury Report February 28, 2003
RECOMMENDATION:
Review, Receive and File the Treasury Report for February 28, 2003
n M. Falconfir, Finance Director
T0 0 (U
jht 4 XP Qumr4
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for February 28, 2003
DATE: March 31, 2003
Attached is the Treasurer's Report for the month ending February 28, 2003. The report is submitted to
the City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
The following table summarizes the changes in investment types for the month:
Investment
Beginning
Purchased
Notes
Sold/Matured
Other
Ending
Change
Cash
$13,420,603
(1)
($14,297,563)
($876,960)
($14,297,563)
LAW
$18,675,157
3,000,000
(1,500,000)
20,175,157
1,500,000
US Treasuries (2)
$57,845,604
30,701
57,876,305
30,701
US Gov't Agencies (2)
$19,858,920
17,526
19,876,446
17,526
Commercial Paper (2)
$0
5,994,006
3,306
5,997,312
5,997,312
Mutual Funds
$369,670
3,950,545
1
4,320,215
3,950,545
Total
$110,169,954
$12,944,551
$15,797,563
$51,533
$107,368,475
$2 801,479
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. the City of
La Quinta used the 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.
1
M. Falconer
ce Director/Treasurer
=ootnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month.
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments.
/ t3
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8
CITY OF LA QUINTA
CITY
CITY
RDA
RDA
FA
BALANCE SHEET 0212W03
FIXED
LONG TERM
FIXED
LONG TERM
FINANCING
LONG TERM
GRAND
CITY
ASSETS
DEBT
RDA
ASSETS
DEBT
AUTHORITY
DEBT
TOTAL
ASSETS:
POOLED CASH
(3,837,145.10)
0.00
0.00
22,520,995.10
0.00
0.00
7,281.36
000
18.691,13136
LORP INVESTMENT IN POOLED CASH
0.00
000
000
590.000.00
000
0,00
000
000
590,000 00
INVESTMENT T-BILLINOTES & OTHER
54.000,000,00
0.00
0.00
000
0.00
0,00
000
0,00
54.000.000 00
AUTO MALL CASH
0.00
0.00
000
0.00
0.00
15,882,97
000
000
000
000
000
15.882 97
LORP CASH
BOND REDEMPTION CASH
0.00
0.00
0.00
4.005.432.38
0,00
000
34000
000
4,005,772 38
BOND RESERVE CASH
0.00
000
0.00
0,00
000
0.00
0.00
000
000
BOND PROJECT CASH
0.00
0.00
0.00
30,316.127.16
0.00
000
0.10
000
30.316.127 26
BOND ESCROW CASH
0.00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
000
PETTY CASH
1.20000
0,00
000
000
000
000
000
000
1.20000
CASH ri INVESTMENT TOTAL
50,164,054.90
0.00
0.00
57.448,437.61
0.00
000
7,62146
000
107,620,113 97
INVESTMENT IN LAND HELD FOR RESALE
0.00
0.00
0.00
000
0.00
000
000
000
000
ACCOUNTS RECEIVABLE
138.902.50
0,00
000
60.900 00
000
0.00
000
0,00
199.802 50
PREMIUM/DISCOUNT ON INVESTMENT
(103,813.77)
0,00
0,00
(147,825.00)
0.00
0.00
0.00
000
(251,638 77)
LQRP-ACCOUNTS RECEIVABLE
0.00
0.00
0.00
54,027.94
0.00
0.00
0.00
0,00
54,027 94
INTEREST RECEIVABLE
220,844.75
0.00
0.00
000
0.00
000
000
000
220,844 75
LOAN/NOTES RECEIVABLE
(59.06)
0.00
0.00
13,215,683.11
0,00
0,00
0.00
000
13.215.624 05
DUE FROM OTHER AGENCIES
1,164,702,00
227.833.02
0.00
0.00
0,00
000
1.392.535 02
2,299.096 69
DUE FROM OTHER AGENCIES - CVAG
2,299,096.69
0.00
0,00
(2.299,096 69)
CVAG ALLOWANCE
DUE FROM OTHER GOVERNMENTS
(2,299.096.69)
30,600.37
0.00
0.00
0.00
0.00
0.00
000
0.00
30,600 37
DUE FROM OTHER FUNDS
0.00
0.00
174,653.56
0,00
0.00
0.00
0.00
174.653 56
DUE FROM RDA
8.497,550.20
0,00
0.00
0.00
0.00
0.00
0.00
000
8,497.550.20
INTEREST ADVANCE -DUE FROM RDA
4,920,474.64
0.00
0,00
0.00
0.00
0.00
0.00
0.00
4.920,474 64
ADVANCES TO OTHER FUNDS
1,100,000.00
3.498,247.90
0.00
000
4.598,247 90
3.85906
NSF CHECKS RECEIVABLE
3,859.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
000
0.00
000
ACCRUED REVENUE
0.00
0.00
0.00
308,622,199 00
FIXED ASSETS
0.00 308.622,199.00
1.018,482 90
ACCUMULATED DEPRECIATION
1,018,482.90
0.00
0.00
0.00
0.00
000
0.00
000
22500
TRAVEL ADVANCES
225.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
000
000
000
EMPLOYEE ADVANCES
PREPAID EXPENSES
0.00
0.00
0.00
000
0,00
000
0.00
000
000
RECEIVABLE TOTAL
16,991,768.59 308.622,199.00
000
17,083.520.53
000
000
000
000
342,697.488 12
WORKER COMPENSATION DEPOSIT
148,445,00
000
0.00
0.00
0.00
000
000
000
148,445 00
RENT DEPOSITS
0.00
0.00
0.00
0.00
000
000
0.00
000
000
UTILITY DEPOSITS
75.00
0,00
0.00
0.00
000
000
000
000
7500
MISC. DEPOSITS
998.21
0.00
0,00
0.00
0.00
0.00
000
0.00
99821
DEPOSITS TOTAL
149,518.21
0.00
0.00
0.00
0.00
0.00
000
000
149.518.21
GENERAL FIXED ASSETS
0.00
0.00
0.00
0.00
52.094,306 00
0.00
0,00
000
52.094,306.00
ACCUMULATED DEPRECIATION
0.00
0.00
0.00
000
0.00
000
000
000
000
000
0.00
AMOUNT AVAILABLE TO RETIRE L/T DEBT
AMOUNT TO BE PROVIDED FOR UT DEBT
0.00
0.00
0.00
1.694.231 51
000
0.00
160,998.172 00
000
7,475,000 00
170,167,403 51
TOTAL OTHER ASSETS
0.00
0.00
1.694.231.51
000
52,094,306.00
160,998,172.00
000
7.475,000,00
222.261,709 51
TOTAL ASSETS 67,305,341 70 308.622,199 00 1,694,231 51 74,531,958 14 52.094.306 00 160.998,172 00 7,621 46 7,475,000 00 672.728,829 81
LIABILITIES:
ACCOUNTS PAYABLE
14.144 54
0,00
0.00
0.00
0.00
0.00
000
0,00
14,144 54
DUE TO OTHER AGENCIES
949,466.54
0.00
0.00
0.00
000
0.00
000
0.00
949,466.54
DUE TO OTHER FUNDS
174.653.56
0.00
0.00
2,034,491.26
0.00
0,00
0.00
0.00
2.209,144 82
INTEREST ADVANCE -DUE TO CITY
3,498,247.90
0.00
000
12,483,537.00
0.00
0.00
0.00
0.00
15,981,784.90
ACCRUED EXPENSES
0.00
0.00
0,00
0.00
0,00
000
0.00
0,00
0.00
INTEREST PAYABLE
0.00
0,00
0.00
95.538 44
95.538 44
PAYROLL LIABILITIES
39,041.00
0.00
000
0.00
0.00
0.00
000
0,00
39,041 00
STRONG MOTION INSTRUMENTS
5,512,87
0,00
0,00
0.00
0.00
0.00
000
0.00
5,512.87
FRINGE TOED LIZARD FEES
104,430 00
000
0.00
0,00
0.00
0.00
000
0,00
104,430.00
SUSPENSE
120.00
0.00
0.00
0.00
000
000
000
000
120.00
DUE TO THE CITY OF LA QUINTA
0.00
000
000
0.00
0.00
000
000
0.00
000
PAYABLES TOTAL
4,785,616.41
0.00
0.00
14,613,566,70
0.00
0.00
0.00
0,00
19,399,183 11
ENGINEERING TRUST DEPOSITS
1.400.00
0.00
0.00
0,00
0,00
0,00
0.00
0,00
1.40000
SO COAST AIR QUALITY DEPOSITS
0,00
0.00
0.00
0.00
0.00
000
0.00
000
0.00
LORP DEPOSITS
0.00
0.00
000
18,009.00
0.00
000
0,00
000
18,009 00
DEVELOPER DEPOSITS
1,104,983.26
0.00
0,00
18,014,50
0.00
0,00
000
000
1.122.997 76
MISC. DEPOSITS
440,496.85
0.00
0.00
25.000 00
0.00
000
000
0.00
465.496 85
AGENCY FUND DEPOSITS
1.372.885.54
0,00
000
000
000
000
000
000
1.372,885 54
TOTAL DEPOSITS
2,919.765,65
0.00
000
61.023.50
000
0,00
0.00
000
2.980,789 15
DEFERRED REVENUE
1.164,702.00
0.00
000
11,079,695 08
0.00
000
000
000
12,244.397 08
OTHER LIABILITIES TOTAL
1,164,702.00
000
0,00 11,079,695.08
000
0.00
000
000
12.244,397 08
COMPENSATED ABSENCES PAYABLE
0,00
000
422.197.92
0.00
000
0.00
0.00
000
422,197 92
DEVELOPER AGREEMENT
0,00
0.00
743,722.59
000
0.00
0.00
0,00
0.00
743,722,59
DUE TO THE CITY OF LA QUINTA
000
000
528.31 L00
0.00
0,00
0.00
0.00
000
528.311 00
DUE TO COUNTY OF RIVERSIDE
0,00
0,00
0.00
0.00
0,00
2,250.000 00
000
000
2.250,000 00
DUE TO C.V. UNIFIED SCHOOL DIST.
0.00
0,00
0.00
0.00
0,00
8,063,172.00
0,00
000
8,063,172.00
DUE TO DESERT SANDS SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
000
0.00
0,00
0.00
BONDS PAYABLE
0,00
0.00
000
000
000
150,685,000 00
000
7.475,000.00
158,160,000 00
TOTAL LONG TERM DEBT
0.00
000
1,694,231.51
0.00
0.00
160,998,172.00
000
7,475.000.00
170,167.403 51
TOTAL LIABILITIES
8,870,084.06
0.00
1,694.231.51
25,754.28528
000
160,998,172,00
000
7,475,000.00
204,791,77285
EQUITY -FUND BALANCE
58,435,257.67 308.622,199.00
0,00
48,777,672.86 52.094,30600
0.00
7.621.46
0.00
467,937.056.99
TOTAL LIABILITY & EQUITY 67,305,341.73 308.622.199.00 1,694.231.51 74,531,958.14 52.094,306.00 160.998.172.00 7,62146 7,475.000.00 672,728.829 84
(0.03) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.03)
CASH 3 INVESTMENT TOTAL 107,620,113.97
PREMIUM/DISCOUNT ON INVESTMENT 1251,638.771
TOTAL 107,36a,475.20
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O
INVESTMENT ADVISORY BOARD Business Session No. B
Meeting Date: April 9, 2003
TITLE:
Consideration of Fiscal Year 2003/04
Investment Policies
(Please bring your copy of the Investment Policy)
BACKGROUND:
Pursuant to State Legislation the City investment policies must be approved on an
annual basis by the City Council. This approval is done in June of each year.
At the previous IAB Meeting in March, Board Members discussed specific
investment items which are summarized as follows:
• Consider increasing the LAW percentage from 15% to 20%.
• Consider reducing commercial paper from 20% to a yet to be determined
amount.
• Consider raising GSE's from $ 5,000,000 to a yet to be determined dollar
amount.
In addition, at the last meeting previous percentages and dollar limitations were
discussed. Staff has attached a year by year analysis of the maximum percentages
and dollar limitations for the last nine years.
RECOMMENDATION:
Continued review of the Investment policies for approval by City Council in June
2003.
I
M. Falc6ner, ,Finance Director
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CITY OF LA QUINTA
Investment Policy
Table of Contents
Section Topic
Page
Executive Summary
2
I
General Purpose
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II
Investment Policy
5
III
Scope
5
IV
Objectives
6
► Safety
► Liquidity
► Yield
► Diversified Portfolio
V
Maximum Maturities
7
VI
Prudence
7
VII
Delegation of Authority
8
VIII
Conflict of Interest
8
IX
Authorized Financial Dealers and Institutions
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► Broker/Dealers
► Financial Institutions
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Authorized Investments and Limitations
10
XI
Investment Pools
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XII
Safekeeping and Custody
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XIII
Interest Earning Distribution Policy
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XIV
Internal Controls and Independent Auditors
14
XV
Benchmark
16
XVI
Reporting Standards
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XVII
Investment of Bond Proceeds
17
XVIII
Investment Advisory Board - City of La Quinta
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IX
Investment Policy Adoption
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Appendices: A. Summary of Authorized Investments and Limitations
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B. Municipal Code Ordinance 2.70 - Investment Advisory Board
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C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
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D. Segregation of Major Investment Responsibilities
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E. Listing of Approved Financial Institutions
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F. Broker/Dealer Questionnaire and Certification
25
G. Investment Pool Questionnaire
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H. Glossary
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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.
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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.
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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
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 or dollar limitations and, where applicable, through
the bid process requirements. Authorized investment vehicles and related maximum
portfolio positions are listed in Appendix A - Summary of Authorized Investments and
Limitations. At least two bids will be required of investments in the authorized
investment vehicles.
Collateralization will be required for Certificates of Deposits in excess of $100,000.
Collateral will always be held by an independent third party from the institution that
sells the Certificates of Deposit to the City. Evidence of compliance with State
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, except the projected annual dollar amount as detailed in Section V, may
be invested in U.S. Treasury bills, notes and bonds maturing between 2 and 5 years.
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.
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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.
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P.O. Box 1504
78-495 CALLE TAMPICO
Sh;ning ungnter I han Ever LA Q U I N TA , C A L I F O R N I A 92253
City of La Quinta
Statement of Investment Policy
July 1, 2002 through June 30, 2003
Adopted by the City Council on June 18, 2002
1 GENERAL PURPOSE
(760) 777-7000
FAX (760) 777-7101
The general purpose of this document is to provide the rules and standards users must
follow in administering the City of La Quinta cash investments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will
provide a diversified portfolio with safety of principal as the primary objective while
meeting daily cash flow demands with the highest investment return. In addition, the
Investment Policy will conform to all State and local statutes governing the investment
of public funds.
III SCOPE
This Investment Policy applies to all cash and investments of the City of La Quinta,
City of La Quinta Redevelopment Agency and the City of La Quinta Financing
Authority, hereafter referred in this document as the "City". These funds are reported
in the City of La Quinta Comprehensive Annual financial Report (CAFR) and include:
All funds within the following fund types:
► General
► Special Revenue
► Capital Projects
► Debt Service
01 Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
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IV OBJECTIVES
The primary objective, in order of priority, of the City of La Quinta's investment
activity shall be:
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio in accordance with
the permitted investments. The objective will be to mitigate credit risk and
interest rate risk.
A. Credit 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.
B. Interest Rate Risk
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. Securities shall not be sold prior to maturity
' with the following exceptions:
► A declining credit quality security could be sold early to minimize loss of
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principal;
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► Liquidity needs of the portfolio require that the security be sold.
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
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.
V MAXIMUM MATURITIES
It is the policy of the City of La Quinta to hold securities and other investments of
cash in financial instruments until maturity, thus avoiding the risk that the market
' value on investments fluctuates with overall market interest ra
tes. The hold until
maturity policy shall not prevent the sale of a security to minimize loss of principal
' when the issuer or backer suffers declining credit worthiness. The hold until
maturity policy requires that the City of La Quinta's investment portfolio is
structured so that sufficient funds are available from maturing investments and
other sources to meet anticipated cash needs. To meet anticipated cash needs, it
is essential that the Treasurer have reasonably accurate, diligently prepared cash
flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five years. For FY 2002/03, the amount of such funds was $10
million. Funds up to that amount may be invested in U.S. Treasury bills notes and
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bonds maturing between 2 and 5 years. For all other funds, investments are
limited to two years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of
California in Probate Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows:
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence excerise in the
professional management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be
derived.
VII DELEGATION OF AUTHORITY
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated
to the City Treasurer, who shall establish written procedures for the operation of the
investment program consistent with the Investment Policy. Procedures should include
reference to safekeeping, wire transfer agreements, banking service contracts, and
collateral/depository agreements. Such procedures shall include explicit delegation of
authority to persons responsible for investment transactions. No person may engage
in an investment transaction except as provided under the terms of this Investment
Policy and the procedures established by the City Treasurer. The City Treasurer shall
be responsible for all transactions undertaken and shall establish a system of controls
to regulate the activities of subordinate officials. The City Manager or Assistant City
' Manager shall approve in writing all purchases and sales of investments prior to their
execution by the City Treasurer.
Vill CONFLICT OF INTEREST
Investment responsibilities carry added duties of insuring that investments are made
' without improper influence or the appearance of improper influence.
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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.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
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:
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► Current audited financial statements
► Proof of National Association of Security Dealers Certification
► Trading resolution
► Proof of California registration
► Resume of Financial broker
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy
The City. Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm and
individual conducting investment related business.
The City Treasurer will also contact the following agencies during the
verification process:
► National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment services
will be approved by the City Manager subject to City Council approval. The City
Attorney will perform a legal review of the trading resolution/investment
contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
' receive City funds for deposit or investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions having accounts insured by the Federal Deposit
Insurance Corporation (FDIC)
B. Collateral The amount of City of La Quinta deposits or
investments not insured by the FDIC -shall be 1 10% collateralized
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
C. Disclosure - Each financial institution maintaining invested funds
in excess of the FDIC insured amount shall furnish the City a copy
of the most recent Annual Call Report.
The City shall not invest in excess of the FDIC insured amount in
banking institutions which do not disclose to the city a current
listing
of securities pledged fog collateral ization in public monies.
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X AUTHORIZED INVESTMENTS AND LIMITATIONS
The City Treasurer will be permitted to invest in the investments summarized in the
Appendix A.
I. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS
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, except the projected
annual dollar amount, as detailed in Section V, may be invested in U.S. Treasury
bills, notes and bonds maturing between 2 and 5 years.
State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local government
agencies are each authorized to invest a maximum of $40 million per account
in this investment program administered by the California State Treasurer. The
City's investment in the State Local Agency Investment Fund (LAIF) is allowable
as long as the average maturity of its investment portfolio does not exceed two
years, unless specific approval is authorized by the City Council. The City of La
Quinta has two accounts with LAIF. The City of La Quinta Investment Policy
has a limitation of 20% 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:
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• 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 and Government National Mortgage
Association (GNMA) securities 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 and GNMA
to 100% 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
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has a limitation of $5 million per issuer.
• 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 (FHLMC) and Student
Loan Marketing Association (SLMA) which are publicly owned. The City
of La Quinta Investment Policy has a limitation of $5 million for FNMA,
$5 million for FHLMC, and $3 million for SLMA.
Bankers' Acceptances - As authorized in Government Code Section 53601 (f),
40% of the portfolio may be invested in Bankers' Acceptances, although no
more than 30% of the portfolio may be invested in Bankers' Acceptances with
any one commercial bank. Additionally, the maturity period cannot exceed 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 270 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
(2) a maximum of $3 million per issuer.
Negotiable Certificates of Deposit - As authorized in Government Code Section
53601(h), 30% of the portfolio may be invested in negotiable certificates of
deposit issued by commercial banks and savings and loan associations. The
City of La Quinta Investment Policy does not allow investment in Negotiable
Certificates of Deposit.
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 overnment securities to be resold
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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
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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.
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
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collateralized from 110 /o to 15/o 0 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 Collateral ization policies must be supplied to the City and
retained by the City Treasurer as follows:
1. Certificates of Deposits Insured by the FDIC.
The City Treasurer may waive 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 1 10% collateralized 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
1 U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
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Derivatives - The City of La Quinta Investment Poiicy does not allow investment
in derivatives.
INVESTMENT POOLS
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 Cityof La Quinta Investment Policy has authorized investment with
y e t 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 $40 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.
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The City does not allow investments with any other Investment Pool - County Pools
or Third Party Pools.
XII SAFEKEEPING AND CUSTODY
All security transactions of the City of La Quinta Investment Policy shall be conducted
on a delivery - versus - payment (DVP) basis. Securities will be held by a third party
custodian designated by the City Treasurer and evidenced by safekeeping receipts.
Deposits and withdrawals of money market mutual funds and LAIF shall be made
directly to the entity and not to an investment advisor, broker or dealer. Money
market mutual funds and LAIF shall also operate on a DVP basis to be considered for
ma et p
investment.
XIII INTEREST EARNING DISTRIBUTION POLICY
' 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:
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.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
► Safeguard assets;
► The orderly and efficient conduct of its business, including adherence to
' management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and,
► Timely preparation of reliable financial information.
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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:
1 a.
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Control of collusion. Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record keeping. By
separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction, a separation of
duties is achieved.
C. Custodial safekeeping. Securities purchased from any bank or dealer including
appropriate collateral (as defined by State Law) shall be placed with an
independent third party for custodial safekeeping.
d. Avoidance of physical delivery securities. Book entry securities are much easier
to transfer and account for since actual delivery of a document never takes
place. Delivered securities must be properly safeguarded against loss or
destruction. The potential for fraud and loss increases with physically delivered
securities.
e. Clear delegation of authority to subordinate staff members. Subordinate staff
members must have a clear understanding of their authority and responsibilities
to avoid improper actions. Clear delegation of authority also preserves the
internal control structure that is contingent on the various staff positions and
their respective responsibilities as outlined in the Segregation of Major
Investment Responsibilities appendices.
f. Written confirmation or telephone transactions for investments and wire
transfers. Due to the potential for error and improprieties arising from telephone
transactions, all telephone transactions shall be supported by written
communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and the safekeeping institution
has a list of authorized signatures. Fax correspondence must be supported by
evidence of verbal or written follow-up.
g. Development of a wire transfer agreement with the City's bank and third party
custodian. This agreement should outline the various controls, security
provisions, and delineate responsibilities of each party making and receiving wire
transfers.
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
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Financial Statements.
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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.
XV BENCHMARK
The investment portfolio shall be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles commensurate with the investment
risk constraints and the cash flow needs of the City. Return on investment is of least
importance compared to safety and liquidity objectives.
The City of La Quinta Investment Policy will use the six-month U.S. Treasury Bill as
a benchmark when measuring the performance of the investment portfolio.
XVI REPORTING STANDARDS
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. AB 943 requires that the December 31 st and June 30" Treasurers Reports be
sent to the California Debt and Advisory Commission within sixty days of the end of
the quarter.
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 Y Cit 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
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months;
A two-year list of historical interest rates.
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XVII INVESTMENT OF BOND PROCEEDS
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.
Arbitrage Requirement
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.
XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
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 ;he 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.
IX INVESTMENT POLICY ADOPTION
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
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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.
AB 943 requires that the Investment Policies be sent to the California Debt and
Investment Advisory Commission within sixty days of a change to the Investment
Policy.
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Appendix B
Chapter 2.70
INVESTMENT ADVISORY BOARDPROVISIONS
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.
2.70.02013oard 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.
2.70.030Board functions.
1 . 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.
2. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
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Appendix C
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide
for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635
of the Government Code, as said sections now read or may hereafter be amended,
from moneys in his custody which are not required for the immediate necessities of
the city and as he may deem wise and expedient, and to sell or exchange for other
eligible securities and reinvest the proceeds of the securities so purchased. (Ord. 2 §
1 (part), 1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys
have been invested pursuant to this chapter, so that the proceeds may, as appropriate,
be applied to the purchase for which the original purchase money may have been
designated or placed in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
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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)
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Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsibilities
Develop formal Investment Policy City Treasurer
Recommend modifications to Investment Policy Investment Advisory Board
Review formal Investment Policy and recommend City Manager and
City Council action City Attorney
Adopt formal Investment Policy City Council
Review Financial Institutions & Select Investments City Treasurer
Approve investments City Manager or
Assistant City Manager
Execute investment transactions City Manager or Treasurer
Confirm wires, if applicable Accounting Manager or
Financial Services Assistant
Record investment transactions in City's Accounting Manager or
accounting records Financial Services Assistant
Investment verification - match broker confirmation City Treasurer and Financial
to City investment records Services Assistant
Reconcile investment records
- to accounting records and bank statements Financial Services Assistant
Reconcile investment records
- to Treasurers Report
of investments Accounting Manager
Security of investments at City Vault
Security of investments Outside City Third Party Custodian
Review internal control procedures External Auditor
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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, 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
1998 RDA Project Area 1 &2 — US Bank
2001 RDA Project Area i — US Bank
2002 RDA Project Area 1 — US Bank
Assessment Districts — US Bank
No Changes to this listing may be made without City Council approval
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Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:
2. Address:
3. Telephone: ( ) ( )
4. Broker's Representative to the City (attach resume):
Name.
Title:
Telephone: ( )
5 . Manager/Partner-in-charge (attach resume) :
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City employees
(attach resume)
Name:
Title:
Telephone: ( ) ( )
7. Which of the above personnel have read the City's Investment Policy?
8. Which instruments are offered regularly by your local cffice? (Must equal
100%)
% U.S. Treasuries % Repos
% BA's % Reverse Repos
% Commercial Paper % CMO's
% CD's % Derivatives
% Mutual Funds % Stocks/Equities
% Agencies (specify): % Other (specify):
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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
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Do you 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?
18. What reports and transaction confirmations or any other research publications will
the City receive?
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19. Does your firm offer investment training to your clients? Yes
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date._
21.
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Please list your NASD Registration Number
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
Do you maintain an office in California. Yes No
No
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.
Under penalties of perjury, the responses to this questionnaire are true and accurate to
the best of my knowledge.
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Broker Representative
Date Title
Sales Manager and/or Managing Partner*
Date Title
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Appendix G
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the following questions and issues should be considered.
SECURITIES
Government pools may invest in a broader range of securities than your entity invests in.
It is important that you are aware of, and are comfortable with, the securities the pool
buys.
1. Does the pool provide a written statement of Investment Policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
' f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?
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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?
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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)?
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OPERA TIONS
The answers to these questions will help you determine whether this pool meets your
operational requirements:
1. Does the pool limit eligible participants?
2. What entities are permitted to invest in the pool?
3. Does the pool allow multiple accounts and sub -accounts?
4. Is there a minimum or maximum account size?
5. Does the pool limit the number of transactions each month? What is the number
of transactions permitted each month?
6. Is there a limit on transaction amounts for withdrawals and deposits?
a. What is the minimum and maximum withdrawal amount permitted?
b. What is the minimum and maximum deposit amount permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
1 1 . 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.
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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?
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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.
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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
amounts whose value is derived from an
underlying index or security (interest rates,
foreign exchange rates, equities or commodities).
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DISCOUNT: The difference between the cost
bonds are issued with various maturities and
price of a security and its maturity when quoted
carry semi-annual coupons. Interest is
at lower than face value. A security selling
calculated on a 360-day, 30-day month basis.
below original offering price shortly after sale also
is considered to be at a discount.
3.
FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
DISCOUNT SECURITIES: Non -interest bearing
Land Banks. These bonds are issued at
money market instruments that are issued a
irregular times for various maturities ranging
discount and redeemed at maturity for full face
from a few months to ten years. The
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value, e.g., U.S. Treasury Bills.
minimum denomination is $1,000. They Y carry
semi-annual coupons. Interest is calculated on
DIVERSIFICATION: Dividing investment funds
a 360-day, 30 day month basis.
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among a variety of securities offering
independent returns.
4.
FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
FEDERAL CREDIT AGENCIES: Agencies of the
intermediate term needs of farmers and the
Federal government set up to supply credit to
national agricultural industry. They are issued
various classes of institutions and individuals,
monthly with three- and six-month maturities.
e.g., S&L's, small business firms, students,
The FFCB issues larger issues (one to ten
farmers, farm cooperatives, and exporters.
year) on a periodic basis. These issues are
highly liquid.
1. FNMAs (Federal National Mortgage
Association) - Used to assist the home
5.
FICBs (Federal Intermediate Credit bank
mortgage market by purchasing mortgages
Debentures) - Loans to lending institutions
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insured by the Federal Housing
used to finance the short-term and
intermediate needs of farmers, such as
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Administration and the Farmers Home
Administration, as well as those guaranteed by
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
the Veterans Administration. They are issued in
with a nine -month maturity. Interest is
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
payable at maturity and is calculated on a 360-
day, 30-day month basis.
monthly.
2. FHLBs (Federal Home Loan Bank Notes and
6.
FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
Bonds) - Issued by the Federal Home Loan
established in 1970 to provide a secondary
Bank System to help finance the housing
market for conventional home mortgages.
industry. The notes and bonds provide
Mortgages are purchased solely from the
liquidity and home mortgage credit to savings
Federal Home Loan Bank System member
and loan associations, mutual savings banks,
lending institutions whose deposits are insured
cooperative banks, insurance companies, and
by agencies of the United States Government.
mortgage -lending institutions. They are
They are issued for various maturities and in
issued irregularly for various maturities. The
minimum denominations of $10,000.
minimum denomination is $5,000. The notes
Principal and Interest is paid monthly.
are issued with maturities of less than one
year and interest is paid at maturity. The
Other federal agency issues are Small
Business Administration notes (SBAs),
Government National Mortgage Association
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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.
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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.
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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
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broker -dealers, banks and a few unregulated firms.
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 hoid 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
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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.
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.
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INVESTMENT ADVISORY BOARD
Meeting Date: April 9, 2003
TITLE:
Month End Cash Report for March 31, 2003 and
Other selected Financial Data
BACKGROUND:
Correspondence & Written
Material Item A
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances, but would report in a timely fashion
selected cash balances.
RECOMMENDATION:
Information item only.
Jdhn M. Falconer, Finance Director
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LAIF Performance Report Page I of 2
715h.11 Angefides, State Treasurer
tnside the StateTreasurers Office
Local Agency Investment Fund
LAW Performance Report
Reporting Date:
03/26/03
Effective Date:
03/26/03
Quarter Yield:
1.99%
Daily:
1.89%
Year:
2.31%
Life:
166
IWAIWIY�
Apportionment Rate: 2.31%
Earnings Ratio: .0000633 339 04137
Fair Value Factor: 1.004029531
Monthly Average For February: 1.945%
hftp://www.treasurer.ca.gov/laif/perfonnance.htm 4/1/2003
LAIF Performance Report
Page 2 of 2
Corporate
CO"WWCW
Pier
2010%
Pooled Money Investment Account
POW0110 Col"POSM011
$55.3 Billion
02/28,A03
Loom Treasuries
9,84% 11.97%
MOM
16.65%
Adobe PDF version of LAI F Performance.
Help with Adobe -Acrobat PDF.
A* zMP
jw�m
0 Treasuries
0 Mortgages
UAgenctes
ECUSENS
0 Tkw Deposits
® Sw*ers Acceptances
0 Repo
0 cwnwcw paper
a Corporate Bonds
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a Reverses
E
http://www.treasurer.ca.gov/laif/perfon-nance.htm 4/1/2003
FRB:Commercial Paper Rates and Outstandings
Page 1 of 3
Federal . srve Release
*.,ommercial raper
Release I About Outstandings I Historical discount rates I Historical outstandings
Data as of March 31, 2003
Commercial Paper Rates and Outstandings
Derived from data supplied by The Depository Trust Company
Trade data insufficient to support calculation of 90-day AA nonfinancial rate for March 31, 2003.
Posted April 1, 2003
Discount rates
AA
AA
A2/P2
Term
financial
nonfinancial
nonfinancial
1-day 138 1.37 1
7-day 1.25 1.27 1.42
15-day 1.25 1.25 F 1.40
30-day 1.25 1.22 F—.48
60-day 1.22 1.22 F-1.40
90-day 1.21 n.a. F138
Yield curve
Monev market basis
1 7 15
30 60
[days to Maturity
Financial — — — hlanfhanaal ..... A2/R2
Percent
1,5
1.4
1.3
1.2
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
w
http://www.federalreserve.gov/Releases/CP/
r
4/l/2003
FRB:Commercial Paper Rates and Outstandings
Page 2 of 3
Discount rate spread
Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) Basis points
150
140
130
120
110
1 OD
90
A 70
60
50
40
I >�30
►
2
1 c�
01 J UL99 O1 uANOO 01 JULOO 41 JAN01 01 JUL01 01 JAN02 01 JUL02 Ol uAN03 01 JUL03
Discount rate history
Thirty -day commercial paper (daily)
— -- A2/P2 spread, 5—day moving average
% U
N:
Percent
7
4
3
2
r
01JUL99 01 JANOO 01 JULOO O1 JAN01 01 JUL01 01 LAN022 .01JUL02 01 J,AN03 01JUL03
_ Financial — — — Nordinanotal ...•. A2/P2
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollars
Billions of dollars
http://www.federalreserve.gov/Releases/CP/
1r V
4/1/2003
FRB:Commercial Paper Rates and Outstandings
Page 3 of 3
1300
1200
1100
ffemn
400
300
200
9-,
90
01 JUL99 01ANOD 01 JU LOO 01 JAN01 01 JU L01 01 AN02 01 JU L02 01 AN03 01 JU L03
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.
Commercial paper outstanding
Commercial paper outstanding, miscellaneous categories
Volume Statistics 2003:Q1
Release I About I Outstandings I Historical discount rates I Historical outstandings
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Home I Statistical releases
Accessibilityl Contact Us
Last update: April 1, 2003
http://www.federalreserve.gov/Releases/CP/ 4/l /2003
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --March 28, 2003
Pagel of 3
Federal Reserve Statistical Release
Selected Interest Rates
Skip it) i.EiriCeJ21
Release Date: March 28, 2003
Weekly release dates and announcements I Flistori.cal data I About
Daily update Other formats: Screen reader I ASCII
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday throug
H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release
SELECTED INTEREST RATES March 28, 2003
Yields in percent per annum
2003
2003
2003
2003
Mar
Mar
Mar
Mar
Instruments
24
25
26
27
Federal funds (effective) 1 2 3
1.23
1.24
1.26
1.29
Commercial paper 3 4 5 6
Nonfinancial
1-month
1.21
1.24
1.24
1.24
2-month
1.21
1.22
1.19
1.24
3-month
1.20
1.18
1.21
Financial
1-month
1.21
1.24
1.24
1.25
2-month
1.23
1.24
1.23
1.21
3-month
1.24
1.23
1.23
1.24
CDs (secondary market) 3 7
1-month
1.26
1.26
1.26
1.27
3-month
1.25
1.24
1.25
1.24
6-month
1.23
1.22
1.22
1.22
Eurodollar deposits (London) 3 8
1-month
1.25
1.25
1.25
1.25
3-month
1.22
1.23
1.23
1.23
6-month
1.19
1.20
1.22
1.21
Bank prime loan 2 3 9
4.25
4.25
4.25
4.25
Discount window primary credit 2 10
2.25
2.25
2.25
2.25
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
1.16
1.19
1.17
1.16
3-month
1.15
1.16
1.16
1.14
6-month
1.16
1.16
1.15
1.14
Treasury constant maturities 11
1-month
1.18
1.21
1.19
1.18
3-month
1.17
1.18
1.18
1.16
6-month
1.19
1.19
1.18
1.17
1-year
1.32
1.28
1.27
1.25
2-year
1.71
1.69
1.68
1.62
3-year
2.14
2.12
2.11
2.05
5-year
2.98
2.97
2.94
2.92
7-year
3.55
3.54
3.52
3.50
10-year
3.98
3.97
3.96
3.95
http://www.federalreserve.gov/Releases/H15/update/
4/l/2003
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --March 28, 2003 Page 2 of 3
20-year 4.97 4.97 4.96 4.96
Treasury long-term average
(25 years and above) 12 13 5.04 5.04 5.04 5.04
Interest rate swaps 14
1-year 1.41 1.39 1.39 1.34
2-year 2.01 1.95 1.96 1.87
3-year 2.59 2.52 2.53 2.44
4-year 3.04 2.98 2.99 2.91
5-year 3.41 3.36 3.37 3.29
7-year 3.94 3.89 3.90 3.83
10-year 4.45 4.40 4.40 4.34
30-year 5.26 5.22 5.22 5.20
Corporate bonds
Moody's seasoned
Aaa 15 6.00 5.99 5.94 5.91
Baa 7.01 7.01 6.97 6.95
State & local bonds 16 4.84
Conventional mortgages 17
See overleaf for footnotes
FOOTNOTES
1. The daily effective federal funds rate is a weighted average of rates
on brokered trades.
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. The rate charged for primary credit under,an amendment to the Board's
Regulation A, which became effective January 9, 2003. This rate replaces
that for adjustment credit, which was discontinued after January 8, 2003.
For further information, see
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm.
The rate reported is that for the Federal Reserve Bank of New York.
Historical series for the rate on adjustment credit is available at
www.federalreserve.gov/releases/hl5/data.htm.
11. Yields on actively traded issues adjusted to constant maturities.
Source: U.S. Treasury.
12. Based on the unweighted average of the bid yields for all Treasury
fixed -coupon securities with remaining terms to maturity of 25
9
http://www.federalreserve.gov/Releases/H15/update/ 4/1/2003
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --March 28, 2003 Page 3 of 3
years and over.
13. A factor for adjusting the daily long-term average in order to
estimate a 30-year rate can be found at
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/lt
14. 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.
15. Moody's Aaa rates through December 6, 2001 are averages of Aaa
utility and Aaa industrial bond rates. As of December 7, 2001,
these rates are averages of Aaa industrial bonds only.
16. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
17. 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 1, 3 and 6 months and 1, 2, 3, 5, 7, 10
and 20 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.
Weekly release dates and announcements I Historical data I .About
Daily update Other formats: Screen reader I .ASC;11
Statistical releases
Home I Economic research and data
.Aecessibility I Contact Lis
Last update: March 28, 2003
http://www.federalreserve.gov/Releases/H15/update/ 4/l/2003
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INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
April 9, 2003
Pooled Money Investment Board Report
for January
BACKGROUND:
Correspondence
& Written Material Item B
The Pooled Money Investment Board Report for January 2003 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
Finance Director
Philip Angelides
January 2003
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
JANUARY 2003
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS........................................................ 17
BANK DEMAND DEPOSITS .......................................... 30
POOLED MONEY INVESTMENT BOARD DESIGNATION... 31
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF JANUARY 2003 WITH JANUARY 2002
(DOLLARS IN THOUSANDS)
....JANUARY 2003 JANUARY 20Q2 CHANGE.
Average Daily Portfolio
$ 56,246,932 $
51,386,227 $
+4,860,705
Accrued Earnings
$ 100,458 $
133,884
-33,426
Effective Yield
2.103
3.068
-0.965
Average Life -Month End (In Days) 190 183 +7 �
Total Security Transactions
Amount
$
20,149,892
$
23,466,004
-3,316,112
Number
436
503
-67
Total Time Deposit Transactions
Amount
$
2,632,290
$
1,951,700
+680,590
Number
145
152
-7
Average Workday Investment Activity
$
1,084,866
$
1,210,367
-125,501
Prescribed Demand Account Balances
For Services
$
859,891
$
607,025
+252,866
For Uncollected Funds
$
207,178
$
66,399
+140,779
1
PHILIP ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
January 31, 2003
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
497,500
0.86
-0.02
Bonds
0
0.00
0.00
Notes
6,336,085
10.91
-1.37
Strips
0
0.00
0.00
Total Government
$
6,833,585
11.77
-1.39
Federal Agency Coupons
$
4,047,660
6.97
-1.03
Certificates of Deposit
10,292,012
17.73
+3.45
Bank Notes
799,992
1.38
+0.31
Bankers' Acceptances
0
0.00
0.00
Repurchases
0
0.00
0.00
Federal Agency Discount Notes
10,228,961
17.62
+1.43
Time Deposits
5,434,095
9.36
-0.04
GNMAs
672
0.00
0.00
Commercial Paper
12,525,373
21.57
-1.37
FHLMC
5,822
0.01
0.00
Corporate Bonds
2,234,041
3.85
-0.38
Pooled Loans
5,655,103
9.74
-0.98
GF Loans
0
0.00
0.00
Reversed Repurchases
0
0.00
0.00
Total (All Types)
$
58,057,316
100.00
'.°.x4"Mlam
INVESTMENT ACTIVITY
JANUARY 2003
DECEMBER 2002
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
436 $
20,149,892
439
$ 20,681,724
Other
6
76,689
35
376,833
Time Deposits
145
2,632,290
100
1,977,500
Totals
587 $
22,858,871
574
$ 23,036,057
PMIA Monthly Average Effective Yield
2.103
2.201
Year to Date Yield Last Day of Month
2.413
2.474
2
U
Commercial
Paper
21.57%
Pooled Money Investment Account
Portfolio Composition
$58.0 Billion
9.36%
Loans Treasuries
0
9.74 0 11.77%
C D's/B N's
19.11%
3
iges
Agencies
24.59%
01 /31 /03
8 Treasuries
B Mortgages
13 Agencies
CD's/BN's
■ Time Deposits
El Bankers Acceptances
■ Repo
Commercial Paper
Corporate Bonds
❑ Loans
Reverses
01/02/03 REDEMPTIONS
CP
GMAC
01/02/03
1.940
$ 25,000
20 $
26,944.44
1.969
CID
FMCC
01/02/03
2.250
30,000
62
116,250.00
2.290
CID
BARTON
01/02/03
1.730
35,000
78
131,191.67
1.760
CID
BARTON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
BARTON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
BARTON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
SALOMON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
SALOMON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
SALOMON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
SALOMON
01/02/03
1.730
50,000
78
187,416.67
1.760
CID
GOLDMAN
01/02/03
1.750
50,000
78
189,583.33
1.781
CID
GOLDMAN
01/02/03
1.750
50,000
78
189,583.33
1.781
CID
GECC
01/02/03
1.700
50,000
83
195,972.22
1.730
CID
BEAR
01/02/03
1.710
50,000
91
216,125.00
1.741
CID
BEAR
01/02/03
1.710
50,000
91
216,125.00
1.741
DISC NOTES
FHLMC
01/02/03
1.670
2,386
78
8,633.34
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
DISC NOTES
FHLMC
01/02/03
1.670
50,000
78
180,916.67
1.699
PURCHASES
CD
W/F
1.290%
03/05/03
1.290
50,000
CD
W/F
1.290%
03/05/03
1.290
50,000
CD
DEXIA
1.310%
06/20/03
1.300
50,000
CD
DEXIA
1.310%
06/20/03
1.300
50,000
CD
MONTREAL
1.290%
06/20/03
1.290
50,000
CD
MONTREAL
1.290%
06/20/03
1.290
50,000
CD
NOVA SCOT
1.300%
06/20/03
1.300
50,000
CD
NOVA SCOT
1.300%
06/20/03
1.300
50,000
CD
LLOYDS
1.300%
06/20/03
1.300
50,000
CD
LLOYDS
1.300%
06/20/03
1.300
50,000
CD
TORONTO
1.300%
06/20/03
1.295
50,000
CD
TORONTO
1.300%
06/20/03
1.295
50,000
CD
TORONTO
1.300%
06/20/03
1.295
50,000
CD
TORONTO
1.300%
06/20/03
1.295
50,000
CD
DEXIA
1.310%
06/27/03
1.300
50,000
CD
DEXIA
1.310%
06/27/03
1.300
50,000
CID
GECC
01/03/03
1.310
50,000
CID
GECC
01/03/03
1.310
50,000
CID
GECC
01/03/03
1.310
50,000
CID
GECC
01/03/03
1.310
50,000
4
01/03/03 REDEMPTIONS
CP
GECC
01/03/03
1.310
50,000
1
1,819.44
1.328
CID
GECC
01/03/03
1.310
50,000
1
1,819.44
1.328
CID
GECC
01/03/03
1.310
50,000
1
1,819.44
1.328
CID
GECC
01/03/03
1.310
50,000
1
1,819.44
1.328
NO PURCHASES
01/06/03
NO SALES
PURCHASES
CD
RB SCOT
1.320% 01/15/03
1.280
25,000
CID
BEAR
01 /21 /03
1.280
25,000
CID
BEAR
01/21/03
1.280
50,000
01/07/03
NO SALES
PURCHASES
CID
BEAR
01/13/03
1.270
25,000
CID
GE
01/13/03
1.250
25,000
CID
GE
01/13/03
1.250
50,000
01/08/03
REDEMPTIONS
DISC NOTES
FNMA
01/08/03
1.690
10,000
84
39,433.33
1.720
DISC NOTES
FNMA
01/08/03
1.690
50,000
84
197,166.67
1.720
DISC NOTES
FNMA
01/08/03
1.690
50,000
84
197,166.67
1.720
DISC NOTES
FNMA
01/08/03
1.690
50,000
84
197,166.67
1.720
PURCHASES
CID
W/F
01/13/03
1.230
50,000
CID
W/F
01/13/03
1.230
50,000
CID
W/F
01/13/03
1.230
50,000
CID
W/F
01/13/03
1.230
50,000
CID
W/F
01/13/03
1.230
50,000
CID
W/F
01/13/03
1.230
50,000
01/09/03
REDEMPTIONS
CID
SAFEWAY
01/09/03
1.500
20,000
16
13,333.33
1.521
CID
CAFCO
01/09/03
1.320
-50,000
55
100,833.33
1.341
CID
CAFCO
01/09/03
1.320
50,000
55
100,833.33
1.341
DISC NOTES
FHLMC
01/09/03
1.680
44,506
84
174,463.52
1.710
DISC NOTES
FHLMC
01/09/03
1.680
50,000
84
196,000.00
1.710
DISC NOTES
FHLMC
01/09/03
1.680
50,000
84
196,000.00
1.710
k,
01/09/03 NO PURCHASES
01/10/03 REDEMPTIONS
CID
TEXT FIN
01/10/03
1.500
25,000
59
61,458.33
1.524
CID
WYETH
01/10/03
2.100
50,000
65
189,583.34
2.137
CID
WYETH
01/10/03
2.100
50,000
65
189,583.34
2.137
DISC NOTES
FHLB
01/10/03
1.670
13,822
86
55,142.10
1.699
DISC NOTES
FHLB
01/10/03
1.670
50,000
86
199,472.22
1.699
DISC NOTES
FHLB
01/10/03
1.670
50,000
86
199,472.22
1.699
DISC NOTES
FHLB
01/10/03
1.670
50,000
86
199,472.22
1.699
DISC NOTES
FHLB
01/10/03
1.670
50,000
86
199,472.22
1.699
PURCHASES
CID NCAT 01/13/03 1.220 50,000
MTN W/F 7.250% 08/24/05 2.530 16,567
01/13/03 REDEMPTIONS
CID
NCAT
01/13/03
1.220
50,000
3
5,083.33
1.237
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
W/F
01/13/03
1.230
50,000
5
8,541.67
1.247
CID
BEAR
01/13/03
1.270
25,000
6
5,291.67
1.287
CID
GE
01/13/03
1.250
25,000
6
5,208.33
1.267
CID
GE
01/13/03
1.250
50,000
6
10,416.67
1.267
CID
SAFEWAY
01/13/03
1.520
50,000
62
130,888.89
1.545
CID
SAFEWAY
01/13/03
1.520
50,000
62
130,888.89
1.545
FHLB
5.125%
01/13/03
4.068
50,000
566
3,181,106.95
4.039
FHLB
5.125%
01/13/03
4.068
50,000
566
3,181,106.95
4.039
FHLB
5.125%
01/13/03
4.068
50,000
566
3,181,106.95
4.039
FHLB
5.125%
01/13/03
4.068
50,000
566
3,181,106.95
4.039
FHLB
5.125%
01/13/03
4.090
50,000
566
3,197,756.95
4.062
FHLB
5.125%
01/13/03
4.090
50,000
566
3,197,756.95
4.062
FHLB
5.125%
01/13/03
5.360
25,000
725
2,650,895.83
5.361
PURCHASES
CD
ABN ARMO
1.290%
06/20/03
1.280
50,000
CD
ABN ARMO
1.290%
06/20/03
1.280
50,000
CD
ABN ARMO
1.290%
06/20/03
1.280
50,000
CD
ABN ARMO
1.290%
06/20/03
1.280
50,000
CP
NCAT
01 /21 /03
1.250
50,000
CID
NCAT
01 /21 /03
1.250
50,000
CID
GOLDMAN
04/10/03
1.250
50,000
CID
GOLDMAN
04/10/03
1.250
50,000
1.1
01/13/03 PURCHASES (continued)
CP
GOLDMAN
04/11/03
1.250
50,000
CP
GOLDMAN
04/11/03
1.250
50,000
CP
GOLDMAN
04/11/03
1.250
50,000
CP
GOLDMAN
04/11/03
1.250
50,000
CP
GOLDMAN
04/11/03
1.250
50,000
01/14/03 REDEMPTIONS
CP
MORG STAN
01/14/03
1.750
50,000
91 -
221,180.56
1.782
CP
MORG STAN
01/14/03
1.750
50,000
91
221,180.56
1.782
CP
MORG STAN
01/14/03
1.750
50,000
91
221,180.56
1.782
CP
MORG STAN
01/14/03
1.750
50,000
91
221,180.56
1.782
CP
GEN MILLS
01/14/03
2.010
20,000
104
116,133.33
2.049
CP
SRAC
01/14/03
2.150
50,000
104
310,555.56
2.193
CP
CITICORP
01/14/03
1.750
50,000
112
272,222.22
1.784
CP
CITICORP
01/14/03
1.750
50,000
112
272,222.22
1.784
CP
CITICORP
01/14/03
1.750
50,000
112
272,222.22
1.784
MTN
FMCC
6.000% 01/14/03
3.900
15,750
356
608,107.50
3.881
MTN
FMCC
6.000% 01/14/03
5.600
7,000
664
714,863.33
5.576
PURCHASES
CD
US BANK
1.280%
06/20/03
1.280
50,000
CD
US BANK
1.280%
06/20/03
1.280
50,000
CD
US BANK
1.280%
06/27/03
1.280
50,000
CD
US BANK
1.280%
06/27/03
1.280
50,000
CP
GECC
01/15/03
1.240
50,000
CP
SAFEWAY
04/01/03
1.420
50,000
CP
SRAC
04/01/03
1.650
50,000
CP
MORG STAN
05/09/03
1.290
50,000
CP
MORG STAN
05/09/03
1.290
50,000
CP
MORG STAN
05/09/03
1.290
50,000
CP
MORG STAN
05/09/03
1.290
50,000
01/15/03 REDEMPTIONS
CD
RB SCOT
1.320%
01/15/03
1.280
25,000
9
8,017.67
1.300
CD
MONTREAL
1.320%
01/15/03
1.320
50,000
19
34,833.33
1.338
CD
MONTREAL
1.320%
01/15/03
1.320
50,000
19
34,833.33
1.338
CP
GECC
01/15/03
1.240
50,000
1
1,722.22
1.257
CP
HOUSEHOLD
01/15/03
1.520
50,000
19
40,111.11
1.542
CP
HOUSEHOLD
01/15/03
1.520
50,000
19
40,111.11
1.542
CP
GECC
01/15/03
1.330
50,000
19
35,097.22
1.349
CP
GECC
01/15/03
1.330
50,000
19
35,097.22
1.349
CP
GECC
01/15/03
1.330
50,000
19
35,097.22
1.349
CP
GECC
01/15/03
1.330
50,000
19
35,097.22
1.349
MTN
FMCC
7.500%
01/15/03
2.910
9,210
203
151,912.87
2.893
MTN
FMCC
7.250%
01/15/03
2.910
36,050
203
593,838.36
2.893
7
01/15/03 REDEMPTIONS (continued)
MTN FMCC 7.250% 01 /15/03 3.353 10,210 258
MTN FMCC 7.500% 01 /15/03 4.426 20,000 318
MTN FMCC 7.250% 01 /15/03 5.600 6,000 665
PURCHASES
CID
W/F
03/28/03
1.270
10,000
CID
W/F
03/28/03
1.270
50,000
CID
SALOMON
04/01/03
1.270
50,000
CID
SALOMON
04/01 /03
1.270
50,000
CID
CITICORP
04/11 /03
1.280
50,000
CID
CITICORP
04/11/03
1.280
50,000
CID
JP MORGAN
06/30/03
1.280
50,000
CID
JP MORGAN
06/30/03
1.280
50,000
CID
JP MORGAN
06/30/03
1.280
50,000
CID
JP MORGAN
06/30/03
1.280
50,000
DISC NOTES
FHLMC
06/20/03
1.240
40,000
DISC NOTES
FHLMC
06/20/03
1.240
50,000
DISC NOTES
FHLMC
06/20/03
1.240
50,000
DISC NOTES
FHLMC
06/20/03
1.240
50,000
DISC NOTES
FHLMC
06/20/03
1.240
50,000
DISC NOTES
FHLMC
06/20/03
1.235
50,000
DISC NOTES
FHLMC
06/20/03
1.235
50,000
01/16/03 REDEMPTIONS
PURCHASES
246,865.12
799,621.44
622,190.00
FHLB 5.370% 01/16/03 5.360 25,000 728 2,672,968.96
FHLB 5.370% 01/16/03 5.830 50,000 762 6,025,433.33
CD
CHASE
1.280%
06/20/03
1.280
50,000
CD
CHASE
1.280%
06/20/03
1.280
50,000
CD
CHASE
1.280%
06/30/03
1.280
50,000
CD
CHASE
1.280%
06/30/03
1.280
50,000
CD
CIBC
1.280%
06/30/03
1.280
50,000
CD
CIBC
1.280%
06/30/03
1.280
50,000
CD
SOC GEN
1.280%
06/30/03
1.280
50,000
CD
SOC GEN
1.280%
06/30/03
1.280
50,000
CID
FCAR
06/09/03
1.290
30,000
CID
FCAR
06/09/03
1.290
50,000
CID
JP MORGAN
06/20/03
1.280
20,000
CID
AMER EXP
06/20/03
1.260
50,000
CID
AMER EXP
06/20/03
1.260
50,000
CID
AMER EXP
06/30/03
1.260
50,000
CID
AMER EXP
06/30/03
1.260
50,000
8
3.331
4.471
5.536
5.359
5.824
01/17/03 REDEMPTIONS
CP BRISTOL 01/17/03 1.380 49,150 32 60,290.67 1.400
NO PURCHASES
01/21/03 REDEMPTIONS
CD
W/F
1.290%
01/21/03
1.290
50,000
21
37,625.00
1.307
CD
W/F
1.290%
01/21/03
1.290
50,000
21
37,625.00
1.307
CD
W/F
1.300%
01/21/03
1.300
30,000
22
23,833.33
1.318
CD
W/F
1.300%
01/21/03
1.300
50,000
22
39,722.22
1.318
CD
RB SCOT
1.350%
01/21/03
1.310
50,000
22
40,087.25
1.330
CD
CIBC
1.340%
01/21/03
1.340
50,000
25
46,527.78
1.358
CD
CIBC
1.340%
01/21/03
1.340
50,000
25
46,527.78
1.358
CP
NCAT
01/21/03
1.250
50,000
8
13,888.89
1.267
CP
NCAT
01/21/03
1.250
50,000
8
13,888.89
1.267
CP
BEAR
01/21/03
1.280
25,000
15
13,333.33
1.298
CP
BEAR
01/21/03
1.280
50,000
15
26,666.67
1.298
CP
BEAR
01/21/03
1.310
50,000
22
40,027.78
1.329
CP
GECC
01/21/03
1.310
50,000
22
40,027.78
1.329
CP
GECC
01/21/03
1.310
50,000
22
40,027.78
1.329
CP
GECC
01/21/03
1.310
50,000
22
40,027.78
1.329
CP
GECC
01/21/03
1.310
50,000
22
40,027.78
1.329
CP
CRC
01/21/03
1.320
50,000
22
40,333.33
1.339
CP
CRC
01/21/03
1.320
50,000
22
40,333.33
1.339
CP
BEAR
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
BEAR
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
GECC
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
GECC
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
GECC
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
GECC
01/21/03
1.330
50,000
25
46,180.56
1.349
CP
GECC
01/21/03
1.330
50,000
28
51,722.22
1.349
CP
GECC
01/21/03
1.330
50,000
28
51,722.22
1.349
CP
GECC
01/21/03
1.330
50,000
28
51,722.22
1.349
CP
GECC
01/21/03
1.330
50,000
28
51,722.22
1.349
CP
CAMPBELL
01/21/03
1.420
25,000
70
69,027.78
1.443
CP
DISNEY
01/21/03
1.600
50,000
70
155,555.56
1.627
CP
WYETH
01/21/03
1.800
50,000
70
175,000.00
1.831
CP
DISNEY
01/21/03
1.970
50,000
85
232,569.44
2.006
CP
KODAK
01/21/03
2.150
50,000
85
253,819.44
2.190
CP
CRC
01/21/03
1.780
35,000
89
154,019.44
1.812
CP
CRC
01/21/03
1.780
50,000
89
220,027.78
1.812
CP
CRC
01/21/03
1.780
50,000
89
220,027.78
1.812
CP
CRC
01/21/03
1.780
50,000
89
220,027.78
1.812
CP
SRAC
01/21/03
2.180
50,000
102
308,833.33
2.224
PURCHASES
CD BARCLAYS 1.260% 06/20/03 1.260 50,000
9
01/21/03 PURCHASES (continued)
CD
BARCLAYS
1.260%
06/20/03
1.260
50,000
CD
BARCLAYS
1.260%
06/30/03
1.260
50,000
CD
BARCLAYS
1.260%
06/30/03
1.260
50,000
CD
SVENSKA
1.280%
06/20/03
1.270
50,000
CD
SVENSKA
1.280%
06/20/03
1.270
50,000
CD
SVENSKA
1.280%
06/30/03
1.270
50,000
CD
SVENSKA
1.280%
06/30/03
1.270
50,000
CP
SRAC
04/02/03
1.650
50,000
CP
AMER EXP
04/11/03
1.260
50,000
CP
AMER EXP
04/11/03
1.260
50,000
CP
BEAR
06/20/03
1.280
50,000
CP
BEAR
06/20/03
1.280
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
GECC
06/20/03
1.270
50,000
CP
JP MORGAN
06/20/03
1.270
50,000
CP
JP MORGAN
06/20/03
1.270
50,000
CP
JP MORGAN
06/30/03
1.270
50,000
CP
JP MORGAN
06/30/03
1.270
50,000
DISC NOTES
FNMA
06/26/03
1.220
50,000
DISC NOTES
FNMA
06/26/03
1.220
50,000
01/22/03 REDEMPTIONS
MTN GMAC 5.875% 01/22/03 3.702 10,830 433 484,800.80 3.681
MTN GMAC 5.875% 01/22/03 6.580 34,000 775 4,710,038.89 6.615
NO PURCHASES
01/23/03 NO SALES
PURCHASES
CD
BK SCOT
1.260% 06/20/03
1.255
50,000
CD
BK SCOT
1.260% 06/20/03
1.255
50,000
CP
GMAC
03/14/03
1.580
50,000
CP
GE
03/26/03
1.260
50,000
CP
GE
03/26/03
1.260
50,000
CP
GE
03/28/03
1.260
50,000
CP
GE
03/28/03
1.260
50,000
CP
JP MORGAN
06/30/03
1.260
50,000
CP
JP MORGAN
06/30/03
1.260
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
10
01/23/03 PURCHASES (continued)
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
01/24/03 NO SALES
PURCHASES
CD
CHASE
1.240%
06/30/03
1.240
50,000
CD
CHASE
1.240%
06/30/03
1.240
50,000
CD
MONTREAL
1.250%
06/30/03
1.240
50,000
CD
MONTREAL
1.250%
06/30/03
1.240
50,000
CP
MORG STAN
04/11/03
1.270
50,000
CP
MORG STAN
04/11/03
1.270
50,000
CP
MORG STAN
04/11/03
1.270
50,000
CP
MORG STAN
04/11/03
1.270
50,000
01/27/03 REDEMPTIONS
CD
RB SCOT
1.350%
01/27/03
1.340
50,000
32
59,556.08
1.358
CD
RB SCOT
1.350%
01/27/03
1.340
50,000
32
59,556.08
1.358
CD
HYPO
1.360%
01/27/03
1.360
50,000
32
60,444.44
1.378
CD
HYPO
1.360%
01/27/03
1.360
50,000
32
60,444.44
1.378
CP
GECC
01/27/03
1.360
20,000
56
42,311.11
1.381
CP
GECC
01/27/03
1.360
50,000
56
105,777.78
1.381
CP
GECC
01/27/03
1.360
50,000
56
105,777.78
1.381
CP
GECC
01/27/03
1.360
50,000
56
105,777.78
1.381
CP
TEXT FIN
01/27/03
1.570
25,000
63
68,687.50
1.596
CP
GEN MILLS
01/27/03
1.630
50,000
70
158,472.22
1.657
CP
TEXT FIN
01/27/03
1.530
25,000
73
77,562.50
1.556
CP
CITICORP
01/27/03
1.340
50,000
73
135,861.11
1.362
CP
CITICORP
01/27/03
1.340
50,000
73
135,861.11
1.362
CP
GEN MILLS
01/27/03
1.880
50,000
84
219,333.33
1.914
CP
WYETH
01/27/03
2.100
50,000
84
245,000.00
2.139
CP
WYETH
01/27/03
2.120
50,000
89
262,055.56
2.160
CP
TEXT FIN
01/27/03
2.000
25,000
91
126,388.89
2.038
CP
CAMPBELL
01/27/03
1.820
25,000
97
122,597.22
1.854
PURCHASES
CP
TEXT FIN
04/01/03
1.400
25,000
CP
GEN MILLS
06/02/03
1.380
25,000
CP
JP MORGAN
06/20/03
1.240
50,000
PURCHASES c/
TREAS
NOTES
7.000%
07/15/06
1.240
44,110
11
01 /28/03 SALES c/
TREAS NOTES
PURCHASES
7.000% 07/15/06 1.240 44,110 1 1,722.22 1.257
CD
STNRD CH
1.270% 06/30/03
1.260
50,000
CD
STNRD CH
1.270% 06/30/03
1.260
50,000
CP
GMAC
02/27/03
1.530
35,000
CP
CITICORP
04/11/03
1.260
50,000
CP
CITICORP
04/11/03
1.260
50,000
CP
DISNEY
05/22/03
1.400
50,000
SBA
FR
1.550% 12/25/27
1.550
15,028
01/29/03 REDEMPTIONS
CP
WYETH
01/29/03
1.820
50,000
56
141,555.56
1.850
CP
CITICORP
01/29/03
1.340
25,000
65
60,486.11
1.361
CP
CITICORP
01/29/03
1.340
50,000
65
120,972.22
1.361
CP
KODAK
01/29/03
1.950
50,000
86
232,916.66
1.986
CP
WYETH
01/29/03
2.120
10,000
89
52,411.11
2.160
CP
WYETH
01/29/03
2.120
50,000
89
262,055.56
2.160
CP
JP MORGAN
01/29/03
1.630
50,000
91
206,013.89
1.659
CP
JP MORGAN
01/29/03
1.630
50,000
91
206,013.89
1.659
CP
HERTZ
01/29/03
2.270
50,000
97
305,819.44
2.315
CP
DEERE
01/29/03
2.030
25,000
98
138,152.78
2.069
CP
DEERE
01/29/03
2.030
50,000
98.
276,305.56
2.069
CP
GOLDMAN
01/29/03
1.750
50,000
105
255,208.33
1.783
CP
GOLDMAN
01/29/03
1.750
50,000
105
255,208.33
1.783
CP
SALOMON
01/29/03
1.740
50,000
105
253,750.00
1.773
CP
SALOMON
01/29/03
1.740
50,000
105
253,750.00
1.773
CP
SALOMON
01/29/03
1.740
50,000
105
253,750.00
1.773
CP
SALOMON
01/29/03
1.740
50,000
105
253,750.00
1.773
CP
FMCC
01/29/03
2.120
50,000
120
353,333.33
2.164
CP
FMCC
01/29/03
2.120
50,000
120
353,333.33
2.164
CP
SRAC
01/29/03
2.150
50,000
120
358,333.33
2.195
DISC NOTES
FHLMC
01/29/03
1.630
50,000
105
237,708.33
1.660
DISC NOTES
FHLMC
01/29/03
1.630
50,000
105
237,708.33
1.660
DISC NOTES
FHLMC
01/29/03
1.630
50,000
105
237,708.33
1.660
DISC NOTES
FHLMC
01/29/03
1.630
50,000
105
237,708.33
1.660
DISC NOTES
FNMA
01/29/03
1.550
4,700
91
18,414.86
1.577
DISC NOTES
FNMA
01/29/03
1.550
50,000
91
195,902.78
1.577
DISC NOTES
FNMA
01/29/03
1.550
50,000
91
195,902.78
1.577
DISC NOTES
FNMA
01/29/03
1.550
50,000
91
195,902.78
1.577
PURCHASES
CD W/F 1.270% 02/21/03
CD W/F 1.270% 02/21/03
CD CIBC 1.230% 06/20/03
12
1.250 46,500
1.250 50,000
1.230 50,000
01/29/03 PURCHASES (continued)
CD
CIBC
1.230%
06/20/03
1.230
50,000
CD
BK SCOT
1.230%
06/20/03
1.225
50,000
CD
BK SCOT
1.230%
06/20/03
1.225
50,000
CD
BNP
1.230%
06/20/03
1.225
50,000
CD
BNP
1.230%
06/20/03
1.225
50,000
CP
WALMART
02/11/03
1.220
50,000
CP
DEERE
03/11/03
1.290
30,000
CP
SRAC
04/07/03
1.590
50,000
CP
CITICORP
04/10/03
1.260
50,000
CP
CITICORP
04/10/03
1.260
50,000
CP
FMCC
06/20/03
1.580
50,000
CP
FMCC
06/20/03
1.580
50,000
CP
FMCC
06/20/03
1.580
50,000
CP
GECC
06/20/03
1.250
50,000
CP
GECC
06/20/03
1.250
50,000
CP
GECC
06/20/03
1.250
50,000
CP
GECC
06/20/03
1.250
50,000
CP
JP MORGAN
06/20/03
1.240
50,000
CP
JP MORGAN
06/20/03
1.240
50,000
CP
JP MORGAN
06/30/03
1.240
50,000
CP
JP MORGAN
06/30/03
1.240
50,000
DISC NOTES
FHLMC
05/01/03
1.190
41,000
DISC NOTES
FHLMC
05/01/03
1.190
50,000
DISC NOTES
FHLMC
06/20/03
1.190
50,000
DISC NOTES
FHLMC
06/20/03
1.190
50,000
DISC NOTES
FHLMC
06/30/03
1.190
50,000
DISC NOTES
FHLMC
06/30/03
1.190
50,000
DISC NOTES
FNMA
05/27/03
1.200
50,000
DISC NOTES
FNMA
05/27/03
1.200
50,000
DISC NOTES
FNMA
05/28/03
1.200
50,000
DISC NOTES
FNMA
05/28/03
1.200
50,000
DISC NOTES
FNMA
05/28/03
1.200
50,000
DISC NOTES
FNMA
05/28/03
1.200
50,000
DISC NOTES
FNMA
05/30/03
1.200
50,000
DISC NOTES
FNMA
05/30/03
1.200
50,000
DISC NOTES
FNMA
06/18/03
1.195
50,000
DISC NOTES
FNMA
06/18/03
1.195
50,000
DISC NOTES
FNMA
06/18/03
1.195
50,000
DISC NOTES
FNMA
06/18/03
1.195
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/20/03
1.200
50,000
DISC NOTES
FNMA
06/30/03
1.205
22,571
13
01/29/03 PURCHASES (continued)
DISC NOTES
FNMA
06/30/03
1.200
50,000
DISC NOTES
FNMA
06/30/03
1.200
50,000
DISC NOTES
FNMA
06/30/03
1.200
50,000
DISC NOTES
FNMA
06/30/03
1.200
50,000
DISC NOTES
FNMA
06/30/03
1.205
50,000
PURCHASES c/
DISC NOTES
FHLMC
12/15/03
1.210
50,000
DISC NOTES
FHLMC
12/15/03
1.210
50,000
DISC NOTES
FNMA
03/14/03
1.210
50,000
FHLMC
2.250% 12/27/04
1.210
14,380
01/30/03 REDEMPTIONS
DISC NOTES
FNMA
01/30/03
1.820
50,000
220
556,111.11
1.866
DISC NOTES
FNMA
01/30/03
1.820
50,000
220
556,111.11
1.866
DISC NOTES
FNMA
01/30/03
1.820
50,000
220
556,111.11
1.866
DISC NOTES
FNMA
01/30/03
1.820
50,000
220
556,111.11
1.866
DISC NOTES
FNMA
01/30/03
1.830
50,000
220
559,166.67
1.876
DISC NOTES
FNMA
01/30/03
1.830
50,000
220
559,166.67
1.876
SALES c/
DISC NOTES
FHLMC
12/15/03
1.210
50,000
1
1,628.46
1.226
DISC NOTES
FHLMC
12/15/03
1.210
50,000
1
1,628.46
1.226
DISC NOTES
FNMA
03/14/03
1.210
50,000
1
1,644.52
1.226
FHLMC
2.250% 12/27/04
1.210
14,380.
1
476.34
1.226
PURCHASES
BN
BANC ONE
1.230%
06/02/03
1.230
50,000
BN
BANC ONE
1.230%
06/02/03
1.230
50,000
BN
BANC ONE
1.230%
06/20/03
1.230
50,000
BN
BANC ONE
1.230%
06/20/03
1.230
50,000
CD
S-E BANKEN
1.280%
04/01/03
1.280
50,000
CD
S-E BANKEN
1.280%
04/01/03
1.280
50,000
CD
BARCLAYS
1.260%
05/02/03
1.250
50,000
CD
BARCLAYS
1.260%
05/02/03
1.250
50,000
CID
CAFCO
05/05/03
1.250
50,000
CID
CAFCO
05/05/03
1.250
50,000
CP
CRC
05/05/03
1.250
50,000
CID
CRC
05/05/03
1.250
50,000
CID
CRC
05/09/03
1.250
50,000
CID
CRC
05/09/03
1.250
50,000
CID
GMAC
06/02/03
1.570
50,000
DISC NOTES
FNMA
06/30/03
1.220
50,000
14
01/31/03 REDEMPTIONS
CD
US BANK
1.720%
01/31/03
1.720
50,000
106
253,222.22
1.743
CD
US BANK
1.720%
01/31/03
1.720
50,000
106
253,222.22
1.743
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
710
4,603,159.53
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
25,000
714
2,314,701.31
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
25,000
714
2,314,701.31
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
714
4,629,402.62
4.731
TREAS
NOTES
4.750%
01/31/03
4.732
50,000
714
4,629,402.62
4.731
TREAS
NOTES
4.750%
01/31/03
4.674
50,000
723
4,633,762.09
4.672
TREAS
NOTES
4.750%
01/31/03
4.674
50,000
723
4,633,762.09
4.672
PURCHASES
DISC NOTES
FHLMC
06/20/03
1.210
1,625
DISC NOTES
FHLMC
06/20/03
1.210
50,000
DISC NOTES
FHLMC
06/20/03
1.210
50,000
DISC NOTES
FHLMC
06/20/03
1.210
50,000
DISC NOTES
FHLMC
06/20/03
1.210
50,000
DISC NOTES
FNMA
06/30/03
1.220
50,000
DISC NOTES
FNMA
06/30/03
1.220
50,000
15
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds
(TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA), Medium Term Notes (MTN), Real Estate
Mortgage Investment Conduit (REMIC).
b/ Purchase or sold yield based on 360 day calculation for discount
obligations and Repurchase Agreements.
c/ Repurchase Agreement.
d/ Par amount of securities purchased, sold or redeemed.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
9-// Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
1 Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
16
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
ALHAMBRA
Bank of East Asia (USA)
08/13/02
1.610
3,000,000.00
02/13/03
Bank of East Asia (USA)
11/13/02
1.310
6,000,000.00
05/13/03
Bank of East Asia (USA)
01 /14/03
1.290
3,095,000.00
07/16/03
Omni Bank
08/27/02
1.720
3,000,000.00
02/25/03
Omni Bank
09/05/02
1.710
3,000,000.00
03/07/03
Omni Bank
10/21/02
1.730
2,000,000.00
04/23/03
Omni Bank
11 /20/02
1.310
2,000,000.00
05/21 /03
ARROYO GRANDE
Mid -State Bank
08/13/02
1.610
5,000,000.00
02/13/03
Mid -State Bank
09/11 /02
1.700
5,000,000.00
03/12/03
Mid -State Bank
10/16/02
1.580
5,000,000.00
04/14/03
Mid -State Bank
11/13/02
1.310
5,000,000.00
05/13/03
Mid -State Bank
12/11/02
1.310
5,000,000.00
06/13/03
Mid -State Bank
01/16/03
1.290
5,000,000.00
07/17/03
BEVERLY HILLS
City National Bank
09/09/02
1.640
10,000,000.00
03/10/03
City National Bank
12/09/02
1.260
10,000,000.00
03/13/03
City National Bank
10/17/02
1.620
25,000,000.00
04/15/03
BREA
Jackson Federal Bank
08/12/02
1.620
10,000,000.00
02/11/03
Pacific Western National Bank
01 /14/03
1.210
2,000,000.00
02/05/03
CALABASAS
First Bank of Beverly Hills FSB
08/07/02
1.650
10,000,000.00
02/06/03
First Bank of Beverly Hills FSB
08/28/02
1.740
10,000,000.00
03/03/03
First Bank of Beverly Hills FSB
09/18/02
1.750
10,000,000.00
03/19/03
CAMARILLO
First California Bank
09/25/02
1.650
3,000,000.00
03/24/03
First California Bank
01 /30/03
1.240
4,000,000.00
07/30/03
CAMERON PARK
Western Sierra National Bank 08/15/02 1.650 6,000,000.00 02/14/03
17
NAME
CAMERON PARK (continued)
Western Sierra National Bank
CHICO
North State National Bank
North State National Bank
North State National Bank
Tri Counties Bank
Tri Counties Bank
CHULA VISTA
North Island Federal Credit Union
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
CONCORD
CA State 9 Credit Union
DUBLIN
Operating Engineers FCU
Operating Engineers FCU
Operating Engineers FCU
EL CENTRO
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
EL SEGUNDO
Hawthorne Savings FSB
Hawthorne Savings FSB
Hawthorne Savings FSB
Hawthorne Savings FSB
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
01 /16/03 1.280 7,000,000.00 07/16/03
08/16/02
1.630
1,500,000.00
02/14/03
09/11/02
1.710
1,000,000.00
03/12/03
01/24/03
1.210
5,000,000.00
07/25/03
12/16/02
1.260
10,000,000.00
03/18/03
12/09/02
1.270
10,000,000.00
03/18/03
12/23/02 1.270 5,000,000.00 03/26/03
12/10/02 1.290 6,000,000.00 06/12/03
01 /27/03 1.210 6,000,000.00 07/31 /03
11/18/02 1.290 10,000,000.00 02/20/03
08/13/02 1.610 5,000,000.00 02/13/03
10/10/02 1.580 5,000,000.00 04/08/03
12/11 /02 1.290 10,000,000.00 06/13/03
10/28/02 1.710 20,000,000.00 04/28/03
11/20/02 1.320 32,500,000.00 05/21/03
12/19/02 1.330 20,000,000.00 07/08/03
12/20/02
1.250
50,000,000.00
03/24/03
01/15/03
1.250
35,000,000.00
04/16/03
11/15/02
1.270
25,000,000.00
05/14/03
01/09/03
1.300
30,000,000.00
07/09/03
18
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
EL SEGUNDO (continued)
Hawthorne Savings FSB
01/06/03
1.300
30,000,000.00
07/09/03
Xerox Federal Credit Union
09/06/02
1.640
7,000,000.00
03/06/03
Xerox Federal Credit Union
11/15/02
1.290
20,000,000.00
05/16/03
FRESNO
United Security Bank
08/05/02
1.700
15,000,000.00
02/05/03
United Security Bank
10/11/02
1.580
5,000,000.00
04/09/03
United Security Bank
11/14/02
1.310
20,000,000.00
05/13/03
FULLERTON
Fullerton Community Bank
11/13/02
1.320
9,000,000.00
05/13/03
Fullerton Community Bank
01/23/02
1.260
8,000,000.00
07/25/03
GLENDALE
The California Credit Union
11/25/02
1.290
5,000,000.00
02/27/03
Verdugo Banking Company
10/01/02
1.630
5,000,000.00
04/02/03
Verdugo Banking Company
01/07/03
1.290
5,000,000.00
07/10/03
GOLETA
Pacific Capital Bank
08/15/02
1.630
16,000,000.00
02/14/03
Pacific Capital Bank
09/09/02
1.630
10,000,000.00
03/14/03
Pacific Capital Bank
09/17/02
1.710
15,000,000.00
03/14/03
Pacific Capital Bank
10/01/02
1.610
10,000,000.00
04/02/03
Pacific Capital Bank
10/11 /02
1.560
10,000,000.00
04/02/03
Pacific Capital Bank
10/29/02
1.710
10,000,000.00
04/29/03
Pacific Capital Bank
12/05/02
1.330
25,000,000.00
06/09/03
Pacific Capital Bank
12/11 /02
1.290
30,000,000.00
06/09/03
Pacific Capital Bank
12/09/02
1.310
30,000,000.00
06/09/03
Pacific Capital Bank
01 /23/03
1.230
45,000,000.00
07/25/03
GRANADA HILLS
First State Bank of California
09/18/02
1.730
2,000,000.00
03/19/03
First State Bank of California
10/21/02
1.730
3,000,000.00
04/23/03
19
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
HUNTINGTON BEACH
First Bank and Trust
08/26/02
1.680
2,000,000.00
02/24/03
First Bank and Trust
09/09/02
1.650
12,000,000.00
03/11/03
IRVINE
Commercial Capital Bank
08/26/02
1.670
14,000,000.00
02/21 /03
Commercial Capital Bank
12/16/02
1.290
10,000,000.00
06/18/03
Commercial Capital Bank
01/08/03
1.290
6,000,000.00
07/10/03
LA JOLLA
Silvergate Bank
09/11 /02
1.730
5,000,000.00
03/12/03
Silvergate Bank
01 /31 /03
1.240
5,000,000.00
08/06/03
LAKEPORT
Lake Community Bank
11/25/02
1.320
1,500,000.00
05/29/03
Lake Community Bank
01/15/03
1.290
2,000,000.00
07/16/03
LODI
Farmers & Merchant Bk Cen CA
01/10/03
1.240
10,000,000.00
04/11/03
LOS ANGELES
Broadway Federal Bank
09/09/02
1.660
3,000,000.00
03/11/03
Broadway Federal Bank
01/09/03
1.310
2,500,000.00
07/11/03
California Center Bank
01/06/03
1.250
10,000,000.00
04/09/03
California Chohung Bank
08/19/02
1.660
4,000,000.00
02/19/03
California Chohung Bank
09/06/02
1.630
5,000,000.00
03/07/03
California Chohung Bank
10/02/02
1.540
3,000,000.00
04/01/03
California Chohung Bank
10/16/02
1.580
800,000.00
04/14/03
California Chohung Bank
10/02/02
1.540
2,500,000.00
04/14/03
California Chohung Bank
01/16/03
1.270
1,000,000.00
07/17/03
Cathay Bank
09/25/02
1.660
19,000,000.00
03/24/03
Cathay Bank
10/09/02
1.590
19,000,000.00
04/07/03
Cathay Bank
11 /12/02
1.310
15,000,000.00
05/13/03
Cathay Bank
12/10/02
1.290
30,000,000.00
06/12/03
Cedars Bank
08/19/02
1.690
2,000,000.00
02/19/03
Cedars Bank
09/06/02
1.650
4,500,000.00
03/05/03
Cedars Bank
10/04/02
1.560
5,000,000.00
04/03/03
Cedars Bank
10/24/02
1.750
4,000,000.00
04/22/03
Cedars Bank
12/12/02
1.310
4,500,000.00
06/12/03
20
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LOS ANGELES (continued)
Eastern International Bank
11/07/02
1.430
900,000.00
05/06/03
Eastern International Bank
12/10/02
1.310
1,000,000.00
06/12/03
Family Savings Bank
12/05/02
1.350
3,000,000.00
06/16/03
Family Savings Bank
01/10/03
1.280
1,000,000.00
07/11/03
Hanmi Bank
12/02/02
1.270
25,000,000.00
03/05/03
Hanmi Bank
09/19/02
1.710
25,000,000.00
03/18/03
Hanmi Bank
01 /17/03
1.240
25,000,000.00
04/18/03
Hanmi Bank
01 /31 /03
1.210
20,000,000.00
05/08/03
Manufacturers Bank
09/20/02
1.700
20,000,000.00
03/10/03
Manufacturers Bank
09/09/02
1.650
30,000,000.00
03/10/03
Marathon National Bank
08/05/02
1.700
2,000,000.00
02/05/03
Mellon First Business Bank
12/17/02
1.250
50,000,000.00
03/19/03
Mellon First Business Bank
01/10/03
1.250
50,000,000.00
04/10/03
Nara Bank, NA
08/08/02
1.640
10,000,000.00
02/07/03
Nara Bank, NA
12/16/02
1.250
5,000,000.00
03/18/03
Nara Bank, NA
10/11 /02
1.560
5,000,000.00
04/23/03
Nara Bank, NA
10/21/02
1.710
15,000,000.00
04/23/03
Pacific Union Bank
09/04/02
1.650
20,000,000.00
03/06/03
Pacific Union Bank
01 /07/03
1.290
10,000,000.00
07/10/03
Preferred Bank
08/08/02
1.670
4,000,000.00
02/07/03
Preferred Bank
08/29/02
1.750
7,000,000.00
02/26/03
Preferred Bank
09/10/02
1.730
9,000,000.00
03/05/03
Preferred Bank
09/18/02
1.740
9,000,000.00
03/21 /03
Preferred Bank
01 /16/03
1.250
6,000,000.00
04/17/03
Sae Han Bank
01 /15/03
1.210
6,000,000.00
02/19/03
Western Federal Credit Union
10/21/02
1.710
30,000,000.00
04/23/03
Wilshire State Bank
08/06/02
1.680
4,000,000.00
02/05/03
Wilshire State Bank
08/26/02
1.680
4,000,000.00
02/24/03
Wilshire State Bank
12/17/02
1.250
8,000,000.00
03/19/03
Wilshire State Bank
10/11 /02
1.590
3,000,000.00
04/09/03
Wilshire State Bank
11/06/02
1.470
4,000,000.00
05/06/03
Wilshire State Bank
05/14/02
2.420
2,000,000.00
05/13/03
Wilshire State Bank
11/22/02
1.320
5,000,000.00
05/29/03
Wilshire State Bank
12/17/02
1.310
2,000,000.00
06/19/03
Wilshire State Bank
07/12/02
2.060
4,000,000.00
07/10/03
MERCED
County Bank
08/26/02
1.680
5,000,000.00
02/24/03
County Bank
10/16/02
1.600
5,000,000.00
04/14/03
County Bank
12/10/02
1.330
10,000,000.00
06/11/03
County Bank
01/16/03
1.300
5,000,000.00
07/17/03
21
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
MODESTO
Valley First Credit Union 10/04/02 1.560 4,000,000.00 04/10/03
MONTEREY PARK
Trust Bank FSB
10/01 /02
1.640
3,000,000.00
04/01 /03
Trust Bank FSB
01 /02/03
1.270
3,000,000.00
07/09/03
NORTH HIGHLANDS
Safe Credit Union
08/15/02
1.630
20,000,000.00
02/14/03.
Safe Credit Union
01/15/03
1.250
5,000,000.00
04/16/03
OAKDALE
Oak Valley Community Bank
12/09/02
1.270
1,500,000.00
03/11/03
Oak Valley Community Bank
03/22/02
2.640
2,000,000.00
03/20/03
Oak Valley Community Bank
01/14/03
1.240
2,500,000.00
04/16/03
OAKLAN D
Metropolitian Bank
09/25/02
1.650
1,000,000.00
03/24/03
Metropolitian Bank
10/28/02
1.700
1,000,000.00
04/28/03
Metropolitian Bank
11/25/02
1.300
1,000,000.00
05/28/03
ONTARIO
Citizens Business Bank
11/07/02
1.440
10,000,000.00
02/06/03
Citizens Business Bank
11 /12/02
1.260
20,000,000.00
02/11 /03
Citizens Business Bank
09/25/02
1.640
30,000,000.00
03/24/03
Citizens Business Bank
10/04/02
1.550
25,000,000.00
04/03/03
Citizens Business Bank
11/20/02
1.310
30,000,000.00
05/21/03
Citizens Business Bank
12/06/02
1.360
25,000,000.00
06/04/03
PALO ALTO
Bank of Petaluma
08/23/02
1.670
3,500,000.00
02/19/03
Bank of Petaluma
09/11/02
1.720
12,000,000.00
03/10/03
Bank of Santa Clara
08/23/02
1.670
20,000,000.00
02/19/03
Bay Area Bank
10/28/02
1.720
5,000,000.00
04/28/03
Bay Area Bank
01/15/03
1.300
5,000,000.00
07/16/03
Bay Bank of Commerce
10/28/02
1.710
5,000,000.00
04/28/03
Coast Commercial Bank
08/23/02
1.680
20,000,000.00
02/19/03
22
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
PALO ALTO (continued)
Coast Commercial Bank
01 /15/03
1.290
5,000,000.00
07/16/03
Cupertino National Bank
08/23/02
1.680
20,000,000.00
02/19/03
Cupertino National Bank
09/11/02
1.730
10,000,000.00
03/10/03
Cupertino National Bank
01/28/03
1.210
35,000,000.00
04/30/03
Cupertino National Bank
01/15/03
1.300
10,000,000.00
07/16/03
Golden Gate Bank
08/23/02
1.680
9,000,000.00
02/19/03
Mid -Peninsula Bank
08/23/02
1.680
5,000,000.00
02/19/03
Mid -Peninsula Bank
09/11/02
1.730
10,000,000.00
03/10/03
Mid -Peninsula Bank
10/28/02
1.720
35,000,000.00
04/28/03
Mt. Diablo National Bank
09/11/02
1.730
10,000,000.00
03/10/03
Peninsula Bank of Commerce
08/23/02
1.680
15,000,000.00
02/19/03
PALOS VERDES ESTATES
Malaga Bank
08/22/02
1.710
2,000,000.00
02/20/03
Malaga Bank
09/12/02
1.710
2,000,000.00
03/13/03
Malaga Bank
10/30/02
1.580
4,000,000.00
05/13/03
Malaga Bank
10/24/02
1.720
4,000,000.00
05/13/03
Malaga Bank
12/23/02
1.280
4,000,000.00
06/25/03
PASADENA
Community Bank
10/23/02
1.720
5,000,000.00
04/15/03
Community Bank
10/15/02
1.570
10,000,000.00
04/15/03
Community Bank
11/08/02
1.260
15,000,000.00
05/07/03
Community Bank
12/19/02
1.320
20,000,000.00
06/19/03
Community Bank
01/10/03
1.280
20,000,000.00
07/11/03
Wescom Credit Union
11/13/02
1.330
10,000,000.00
05/13/03
PLACERVILLE
El Dorado Savings Bank
02/08/02
2.250
5,000,000.00
02/07/03
El Dorado Savings Bank
03/07/02
2.390
5,000,000.00
03/07/03
El Dorado Savings Bank
03/22/02
2.640
5,000,000.00
03/20/03
El Dorado Savings Bank
04/12/02
2.640
10,000,000.00
04/10/03
El Dorado Savings Bank
05/02/02
2.390
5,000,000.00
04/30/03
El Dorado Savings Bank
06/10/02
2.360
20,000,000.00
06/10/03
PLEASANTON
Valley Community Bank
09/12/02
1.750
5,000,000.00
03/13/03
23
NAME
POMONA
PFF Bank and Trust
PFF Bank and Trust
PORTERVILLE
Bank of the Sierra
RANCHO SANTA FE
La Jolla Bank, FSB
La Jolla Bank, FSB
La Jolla Bank, FSB
La Jolla Bank, FSB
REDDING
North Valley Bank
REDWOOD CITY
Provident Central Credit Union
ROCKLIN
Five Star Bank
RICHMOND
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
Mechanics Bank
RIVERSIDE
Provident Savings Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
08/30/02 1.720 8,000,000.00 02/27/03
12/09/02 1.330 20,000,000.00 06/11/03
10/21 /02 1.730 10,000,000.00 04/23/03
08/06/02
1.670
25,000,000.00
02/05/03
09/04/02
1.660
10,000,000.00
03/06/03
11 /19/02
1.310
25,000,000.00
05/21 /03
12/05/02
1.350
10,000,000.00
06/04/03
12/11/02 1.310 3,000,000.00 06/13/03
10/29/02 1.710 20,000,000.00 04/29/03
10/01 /02 1.610 2, 000, 000.00 04/01 /03
03/07/02
2.390
10,000,000.00
03/07/03
04/05/02
2.710
10,000,000.00
04/01/03
04/25/02
2.440
10,000,000.00
04/23/03
06/12/02
2.340
10,000,000.00
06/12/03
07/11 /02
2.110
10,000,000.00
07/09/03
08/13/02
1.710
10,000,000.00
08/08/03
09/12/02
1.800
10,000,000.00
09/12/03
10/ 15/02
1.580
10, 000, 000.00
10/ 15/03
11 /07/02
1.510
10,000,000.00
11 /07/03
09/27/02 1.630 25,000,000.00 03/27/03
24
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SACRAMENTO
American River Bank
08/29/02
1.720
2,000,000.00
02/26/03
American River Bank
09/25/02
1.680
2,000,000.00
03/27/03
American River Bank
10/11/02
1.560
1,500,000.00
04/09/03
American River Bank
12/23/02
1.280
1,000,000.00
06/25/03
American River Bank
01/10/03
1.260
1,000,000.00
07/11/03
American River Bank
01/14/03
1.270
1,500,000.00
07/31/03
Bank of Sacramento
08/12/02
1.610
1,500,000.00
02/11 /03
Bank of Sacramento
09/20/02
1.720
2,000,000.00
03/19/03
Bank of Sacramento
11/25/02
1.330
2,000,000.00
05/29/03
Merchants National Bank
10/17/02
1.660
2,000,000.00
04/15/03
Merchants National Bank
01/22/03
1.230
2,000,000.00
07/24/03
River City Bank
08/27/02
1.720
2,000,000.00
02/25/03
River City Bank
10/01/02
1.630
4,000,000.00
04/02/03
River City Bank
01/08/03
1.320
2,000,000.00
07/10/03
River City Bank
01 /27/03
1.240
3,000,000.00
07/31 /03
U.S. Bank
11/06/02
1.480
50,000,000.00
02/06/03
U.S. Bank
08/23/02
1.670
25,000,000.00
02/19/03
U.S. Bank
01 /08/03
1.310
100,000,000.00
07/10/03
U.S. Bank
01/31/03
1.230
25,000,000.00
08/06/03
Union Bank of California
11/05/02
1.450
150,000,000.00
02/06/03
Union Bank of California
12/18/02
1.270
4,000,000.00
03/20/03
Union Bank of California
12/18/02
1.270
46,000,000.00
03/20/03
Union Bank of California
12/16/02
1.250
100,000,000.00
03/20/03
Union Bank of California
01/17/03
1.240
150,000,000.00
04/18/03
SALINAS
Community Bank of Central Cal 12/30/02 1.230 10,000,000.00 04/03/03
Community Bank of Central Cal 01/14/03 1.240 8,000,000.00 04/16/03
SAN BERNARDINO
Business Bank of California 09/16/02 1.730 12,000,000.00 03/18/03
Business Bank of California 11/06/02 1.480 10,000,000.00 05/06/03
Business Bank of California 01/14/03 1.300 8,000,000.00 07/16/03
SAN DIEGO
First Future Credit Union 08/30/02 1.710 5,000,000.00 02/27/03
First Future Credit Union 11/25/02 1.330 5,000,000.00 05/29/03
First Future Credit Union 12/05/02 1.360 10,000,000.00 06/04/03
25
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SAN DIEGO (continued)
First Future Credit Union
12/18/02
1.320
3,000,000.00
06/16/03
First United Bank
02/15/02
2.300
1,000,000.00
02/14/03
First United Bank
01/17/03
1.290
2,000,000.00
07/18/03
Neighborhood National Bank
08/22/02
1.730
2,000,000.00
02/21/03
SAN FRANCISCO
American California Bank
01 /08/03
1.280
2,000,000.00
04/08/03
American California Bank
01 /08/03
1.330
2,000,000.00
07/08/03
Bank of Canton California
03/08/02
2.390
20,000,000.00
03/07/03
Bank of Canton California
10/10/02
1.880
40,000,000.00
04/08/03
Bank of Canton California
08/30/02
1.920
20,000,000.00
08/28/03
Bank of the West
11 /18/02
1.260
242,000,000.00
02/20/03
Bank of the West
09/20/02
1.690
82,000,000.00
03/19/03
Bank of the West
12/30/02
1.250
134,000,000.00
04/04/03
Bank of the West
01/16/03
1.290
75,000,000.00
07/30/03
Bank of the West
01 /22/03
1.250
76,500,000.00
07/30/03
Bank of the West
01 /23/03
1.230
25,000,000.00
07/30/03
California Federal Bank
10/16/02
1.590
100,000,000.00
04/14/03
Citibank (West) FSB
11/21/02
1.260
100,000,000.00
02/19/03
Citibank (West) FSB
12/30/02
1.230
50,000,000.00
04/04/03
Oceanic Bank
09/12/02
1.800
4,000,000.00
09/12/03
Trans Pacific National Bank
08/05/02
1.700
1,000,000.00
02/05/03
Trans Pacific National Bank
09/19/02
1.730
1,000,000.00
03/25/03
Trans Pacific National Bank
12/23/02
1.300
1,000,000.00
06/25/03
United Commercial Bank
08/30/02
1.750
30,000,000.00
02/28/03
United Commercial Bank
09/10/02
1.710
30,000,000.00
03/21 /03
United Commercial Bank
09/10/02
1.710
35,000,000.00
03/21/03
United Commercial Bank
12/03/02
1.320
25,000,000.00
06/04/03
United Commercial Bank
12/30/02
1.310
25,000,000.00
07/01/03
United Commercial Bank
01/10/03
1.280
30,000,000.00
07/11/03
United Commercial Bank
01/15/03
1.280
20,000,000.00
07/16/03
United Commercial Bank
01/27/03
1.230
40,000,000.00
07/31/03
SANJOSE
Comerica Bank of California
11/05/02
1.500
183,000,000.00
02/03/03
Comerica Bank of California
12/04/02
1.310
63,000,000.00
03/04/03
Comerica Bank of California
01 /13/03
1.270
71,000,000.00
04/16/03
Heritage Bank of Commerce
08/15/02
1.640
2,000,000.00
02/14/03
Meriwest Credit Union
08/28/02
1.730
5,000,000.00
02/25/03
Meriwest Credit Union
10/18/02
1.710
5,000,000.00
04/16/03
C
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
SAN JOSE (continued)
Meriwest Credit Union
11/07/02
1.460
5,000,000.00
05/06/03
Meriwest Credit Union
12/17/02
1.330
5,000,000.00
06/19/03
San Jose National Bank
08/14/02
1.660
20,000,000.00
02/19/03
San Jose National Bank
01 /28/03
1.210
20,000,000.00
04/30/03
Santa Clara Co. Fed. C.U.
08/06/02
1.680
10,000,000.00
02/05/03
Santa Clara Co. Fed. C.U.
11/05/02
1.470
5,000,000.00
05/07/03
SAN LUIS OBISPO
First Bank Of San Luis Obispo
11/12/02
1.270
6,000,000.00
02/11/03
First Bank Of San Luis Obispo
09/10/02
1.750
7,000,000.00
03/11/03
First Bank Of San Luis Obispo
09/24/02
1.690
5,000,000.00
03/26/03
Mission Community Bank
09/05/02
1.650
1,000,000.00
03/04/03
Mission Community Bank
10/10/02
1.600
2,500,000.00
04/08/03
Mission Community Bank
12/10/02
1.310
1,000,000.00
06/12/03
San Luis Trust Bank
01 /21 /03
1.260
1,000,000.00
07/23/03
SAN MARINO
East West Federal Bank
02/07/02
2.260
35,000,000.00
02/07/03
East West Federal Bank
09/10/02
1.700
35,000,000.00
03/11/03
East West Federal Bank
05/15/03
2.370
38,000,000.00
05/15/03
East West Federal Bank
01/09/03
1.300
42,000,000.00
07/11/03
SAN RAFAEL
Westamerica Bank
04/09/02
2.570
35,000,000.00
04/10/03
Westamerica Bank
01 /16/03
1.220
25,000,000.00
04/17/03
Westamerica Bank
01 /21 /03
1.200
50,000,000.00
04/24/03
Westamerica Bank
01/28/03
1.180
10,000,000.00
04/30/03
SANTA MARIA
Hacienda Bank 09/09/02 1.670 1,000,000.00 03/10/03
SANTA ROSA
National Bank of the Redwoods 01 /22/03 1.230 10,000,000.00 07/24/03
SONORA
Central California Bank 12/23/02 1.270 5,000,000.00 03/26/03
27
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
STOCKTON
Pacific State Bank
10/11/02
1.590
1,000,000.00
04/09/03
Pacific State Bank
01/07/03
1.300
1,000,000.00
07/10/03
Union Safe Deposit Bank
08/15/02
1.670
15,000,000.00
02/14/03
Union Safe Deposit Bank
09/04/02
1.680
15,000,000.00
03/06/03
Union Safe Deposit Bank
10/10/02
1.610
10,000,000.00
04/15/03
Union Safe Deposit Bank
11/04/02
1.460
5,000,000.00
05/07/03
Union Safe Deposit Bank
11/07/02
1.460
10,000,000.00
05/07/03
Union Safe Deposit Bank
12/11/02
1.320
10,000,000.00
06/13/03
Union Safe Deposit Bank
01/23/03
1.260
15,000,000.00
07/25/03
Washington Mutual Bank
08/19/02
1.660
60,000,000.00
02/19/03
Washington Mutual Bank
12/16/02
1.310
45,000,000.00
06/18/03
Washington Mutual Bank
01/22/03
1.250
75,000,000.00
07/24/03
TORRANCE
China Trust Bank (USA)
11/15/02
1.270
20,000,000.00
02/13/03
China Trust Bank (USA)
12/11 /02
1.270
35,000,000.00
03/14/03
China Trust Bank (USA)
01 /22/03
1.230
30,000,000.00
04/24/03
TRACY
Service 1st Bank
09/24/02
1.680
2,000,000.00
03/20/03
Service 1 st Bank
09/17/02
1.750
2,000,000.00
03/20/03
TUSTIN
First Fidelity Investment & Loan
11/06/02
1.470
15,000,000.00
02/05/03
Sunwest Bank
11 /08/02
1.270
7,800,000.00
02/07/03
Sunwest Bank
12/09/02
1.280
1,000,000.00
03/13/03
Sunwest Bank
01/13/03
1.260
6,000,000.00
04/16/03
VACAVILLE
Travis Credit Union
08/28/02
1.730
40,000,000.00
02/25/03
WATSONVILLE
Monterey Bay Bank
09/06/02
1.650
6,000,000.00
03/04/03
Monterey Bay Bank
09/19/02
1.730
8,000,000.00
03/25/03
Monterey Bay Bank
10/10/02
1.600
3,000,000.00
04/10/03
Monterey Bay Bank
12/16/02
1.310
3,000,000.00
06/18/03
Monterey Bay Bank
01/14/03
1.290
8,000,000.00
07/16/03
28
NAME
WHITTIER
TIME DEPOSITS
DEPOSIT
DATE
Quaker City Bank 10/04/02
Quaker City Bank 12/03/02
Quaker City Bank 01/14/03
TOTAL TIME DEPOSITS JANUARY 2003
29
PAR MATURITY
YIELD AMOUNT ($) DATE
1.610 16,000,000.00 04/02/03
1.300 25,000,000.00 06/04/03
1.270 24,000,000.00 07/16/03
5,434,095,000.00
BANK DEMAND DEPOSITS
JAN UARY 2003
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 993,636
$ 5,696,272
2
402,051
5,319,009
3
777,886
5,690,712
4
777,886
5,690,712
5
777,886
5,690,712
6
793,223
5,134,629
7
750,702
4,927,072
8
784,219
4,806,496
9
1,008,791
4,696,214
10
992,271
5,296,823
11
992,271
5,296,823
12
992,271
5,296,823
13
1,234,216
5,469,879
14
1,101,216
5,354,789
15
1,215,983
5,362, 522
16
435,423
5,209,418
17
846,486
5,808,925
18
846,486
5,808,925
19
846,486
5,808,925
20
846,486
5,808,925
21
747,251
5,288,191
22
828,755
4,958,168
23
1,178,140
4,640,932
24
608,810
5,083,310
25
608,810
5,083,310
26
608,810
5,083,310
27
1,076,959
4,841,179
28
1,143,010
4,992,363
29
843,900
5,257,885
30
562,859
5,030,796
31
1,334,156
5,833,476
AVERAGE DOLLAR DAYS
$ 861,591 a/
a/ The prescribed bank balance for January was $1,067,069. This consisted of
$859,891 in compensating balances for services, balances for uncollected
funds of $215,613 and a deduction of $8,435 for January delayed
deposit credit.
30
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on January 22, 2003, 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
No. 1643
$ 859,891,000
The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of
computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as
a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any
deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount
provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in
the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection
periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in
such a manner as to realize the maximum return consistent with safe and prudent treasury management.
2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest -
bearing deposits in banks and savings and loan associations as follows:
From
To
Transactions
( 1)
1/20/2003
1/24/2003
$
368,900,000
(2)
1/27/2003
1/31/2003
$
1,850,400,000
(3)
2/3/2003
2/7/2003
$
1,925,900,000
(4)
2/10/2003
2/14/2003
$
(747,200,000)
(5)
2/17/2003
2/21/2003
$
189,800,000
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
(section 16430)*
and 16602)*
Total
$ 49,177,805,000
$
5,419,095,000
$
54,596,900,000
$ 51,028,205,000
$
5,419,095,000
$
56,447,300,000
$ 52,954,105,000
$
5,419,095,000
$
58,373,200,000
$ 52,206,905,000
$
5,419,095,000
$
57,626,000,000
$ 52,396,705,000
$
5,419,095,000
$
57,815,800,000
From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested
in prime commercial paper under section 16430(e), Government Code.
Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the
amounts and for the same types of investments as specifically designated above.
Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by
which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance
of $ 859,891,000.
POOLED MONEY INVESTMENT BOARD:
Signatures on file at STO & SCO
Chairperson
Member
Dated: January 22, 2003
* Government Code
Member
31
BOARD MEMBER ITEMS