2004 06 09 IABa
t
P.O. Box 1504
78-495 CALLS 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
June 9, 2004 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT- (This is the time set aside for public comment on any matter not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on May 12, 2004 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for April, 2004
B. Continued Consideration of Fiscal Year 2004/05 Investment Policy
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - May, 2004
B. - Pooled Money Investment Board Reports - March, 2004
VII BOARD MEMBER ITEMS -
Vill ADJOURNMENT
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: June 9, 2004
ITEM TITLE:
Transmittal of Treasury Report
for April 30, 2004
BACKGROUND:
Attached please find the Treasury Report for April 30, 2004.
RECOMMENDATION:
Review, Receive and File the Treasury Report for April 30, 2004.
4John M. Falcoher, Finance Director
4 �Q�.rw
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for April 30, 2004
DATE: June 2, 2004
Attached is the Treasurer's Report for the month ending April 30, 2004. 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
$ (102,723)
(1)
$ (1,076,162)
($1,178,885)
($1,076,162)
LAIF
33,441,285
108,184
(4,600,000)
28,949,469
(4,491,816)
US Treasuries (2)
70,031,843
-
-
24,925
70,056,768
24,925
US Gov't Agencies (2)
30,061,700
-
(16,261)
30,045,439
(16,261)
Commercial Paper (2)
-
0
0
Mutual Funds
2 392,507
927
1
2,393,434
927
Total
$135,824,6121
$109,111
$5 676,162
$8,664
$130,266,225
$5,558,387
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.
John M. Falconer
Finance Director/Treasurer
Footnote
(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.
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FIXED
LONG TERM
FINANCING
LONG TERM
GRAND
CITY
ASSETS
DEBT
RDA
ASSETS
DEBT
AUTHORITY
DEBT
TOTAL
ASSETS:
POOLED CASH
(11,728,833.89)
0.00
0.00
38,855,241.09
0.00
0.00
5.726.82
0.00
27,132,134.02
LQRP INVESTMENT IN POOLED CASH
0.00
0.00
0.00
612,000.00
0.00
0.00
0.00
0.00
612.000.00
INVESTMENT T-S LLMOTES 6 OTHER
62,670,000.00
0.00
0.00
37,086,000.00
0.00
0.00
0.00
0.00
99.956,000.00
AUTO MALL CASH
LQRP CASH
0.00
0.00
0.00
0.00
0.00
25,449.50
0.00
0.00
0.00
0.00
0.00
25.449.50
BOND REDEMPTION CASH
0.00
0.00
0.00
219.50
0.00
0.00
5.83
0.00
225.33
BOND RESERVE CASH
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
BOND PROJECT CASH
0.00
0.00
0.00
2,393208.26
0.00
0.00
0.00
0.00
2,393,208.25
BOND ESCROW CASH
0.00
0.00
0.00
0.00
0.OD
0.00
0.00
0.00
0.00
PETTY CASH
1000 00
0.00
0 00
0.00
0.00
0.00
0.00
0.00
1,000.00
CASH i INVESTMENT TOTAL
51.142.166.11
0.00
0.00
78,972,118.35
0.00
0.00
5.732.65
0.00
130.120,017.11
INVESTMENT IN LAND HELD FOR RESALE
0.00
0.00
0.00
0.00
0.00
0.00
.0.00
0.00
0.00
ACCOUNTS RECEIVABLE
29,603.53
0.00
0.00
60.900.00
0.00
0.00
0.00
0.00
90.503.53
PREMIUMIDISCOUNT ON INVESTMENT
197,935.80
0.00
0.00
(51.727.79)
0.00
0.00
0.00
0.00
146,207.81 "
LORP-ACCOUNTS RECEIVABLE
0.00
0.00
0.00
76271.59
0.00
0.00
0.00
0.00
75,271.59
INTEREST RECEIVABLE
48.358.93
0.00
0.00
0.00
0.00
0.00
0.00
0.00
48,358.93
LOANINOTES RECEIVABLE
o.00
0.00
0.00'
12,613,564.62
0.00
0.00
0.00
0.00
12,6W%4.62
DUE FROM OTHER AGENCIES
DUE FROM OTHER AGENCIES - CVAG"
3,087257.06
2.M.095.69
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,007257.06
2,M,096.69
CVAG ALLOWANCE
DUE FROM OTHER GOVERNMENTS
(2.2WM.89)
44,634.18
0.00
0.00
O.OD
OAo
0.00
0.00
0.00
(2,299.096.89)
44,834.18
DUE FROM OTHER FUNDS
ADVANCES FROM RDA - PRINCIPAL
0.00
15,597,550.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
O.w
0.00
. 0.00
0.00
0.00
0.00
15.597450.20
ADVANCES FROM RDA - INTEREST
6,951.545.54
0.00
0.00
0.00
0.OD
0.00
0.00
0.00
6,961.545.54
ADVANCES TO OTHER FUNDS
0.00
4.388.80
0.00
moo
6,709,482.94
0.00
0.00
0.00
0.00
0.00
6,709,482.94
4,388.80
NSF CHECKS RECEIVABLE
ACCRUED REVENUE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
FIXED ASSETS
0.00 305,249.852.60
305249,852.60
929209.62
ACCUMULATED DEPRECIATION
92%MA2
3.125.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3.125.00
TRAVEL ADVANCES
EMPLOYEE ADVANCES
13,015.70
.0.00
0.00
0.00
0.00
0.OD
0.00
0.00
0.00
13,015.70
PREPAID EXPENSES
RECEIVABLE TOTAL
18098 36 0.00
26,934.722.32 305,249.W2.80
0.00
0.00
0.00
19,406.491.36
0.00
0.00
0.00
0.00
o.00
0.00
0.00 18.096.36
0.00 352,592.86628
WORKER COMPENSATION DEPOSIT
234,177.00
0.00
0.00
o.OD
0.00
0.00
0.00
0.00
0.00
0.00
0.00
234.177.00
4,830.OD
RENT DEPOSITS
4,830.00
0.00
0.00
0.00
0.00
O.Oo
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
UTILITY DEPOSITS
MISC. DEPOSITS
107321
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.073.21
DEPOSITS TOTAL
240.00021
0.00
0.00
0.00
0.00
0.00
0.00
0.00
240AW.21
ASSETS
0.00
0.00
0.00
0.00 52,066,306.00
0.00
0.00
0.00
52,066,306.00
GENERAL FIXED
ACCUMULATED DEPRECATION
AMOUNT AVARABLE TO RETIRE L/r DEBT
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
AMOUNT TO BE PROVIDED FOR LIT DEBT
0.00
0.00
1.625,259.95
0.00
0.00 158.480,254.00
1MAM254 00
0.00
0.00
7.190,000.00
7190,000.00
167,275.513.96
219,341,819.96
TOTAL OTHER ASSETS
0.00
0.00
1625259 96
0.00 52 OB6.306
00
TOTAL ASSETS 78 316,988 64 306248 852 80 1625.258 96 98 380 609.71 52,066,306.00 15a,4Q0254A0 5,732.65 7,190,000.00 702294,783.55
LIABILITIES:
ACCOUNTS PAYABLE
14A=.84
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14,422 84
854.539.02
DUE TO OTHER AGENCIES
854AN.02
0.00
0.00
0.00
0.0o
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
DUE TO OTHER FUNDS
ADVANCES FROM OTHER FUNDS
6,709.481.94
0.00
0.00
22,559,099.16
0.00
0.00
0.00
0.00 •
29288,581.10
0.00
ACCRUED EXPENSES
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
INTEREST PAYABLE
0.00
185,724.56
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
185,724.56
PAYROLL LL4BILITIES
STRONG MOTION INSTRUMENTS
3,198.13
0.00
0.00
0.00
0.00
0.00
000
0.00
0.00
0.00
3,196.13
106,428.00
FRINGE TOED LIZARD FEES
105.426.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
305.00
SUSPENSE
DUE TO THE CITY OF LA OUINTA
306.00
0.00
0.00
0.00
0.00
0.00
22,559,099.16
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
30.413,197.65
PAYABLE3 TOTAL
7,854,098.49
0.00
ENGINEERING TRUST DEPOSITS
o.o0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
SO. COAST AIR OUALITY DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
18.884.00
0.00
0.00
0.00
0.00
18,664.00
LQRP DEPOSITS
DEVELOPER DEPOSITS
1,453.5NV
0.00
.
0.00
2,835.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1AM401.57
148,774.48.
MISC. DEPOSITS
121,774.48
1.59E 458.30
0.00
ow
0.00
0.00
25,000.00
ow
0.00
0.00
0 00
0.00
0.00
1.456.30
AGENCY FUND DEPOSITS
TOTAL DEPOSITS
3,167,799.35 .
0.00
0.00
46AN-00
0.00
0.00
0.00
0.00
3214.ZW35
DEFERRED REVENUE
OTHER LIABILITIES TOTAL
3101290 87
3.101.290:57
0.00
0.00
0.00
0.00
10,495 978 56
10,495,978.56
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13,597269.43
13,5972M 43
COMPENSATED ABSENCES PAYABLE
0.00
0.00
462260.37
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
462,260.37
654,688.59
DEVELOPER AGREEMENT
0.00
0.00
0.00
0.OD
684.688.59
478.311.00
0.00
0.00
0.00
0.00
0.00
0.00•
478,311.00
DUE TO THE CITY OF LA QUINTA
0.00
0.00
0.00
0.00
0.00
2.150.000.00
0.00
0.00
2,150.000.00
DUE TO COUNTY OF RIVERSIDE
0.00
0.00
0.00
0.00
0.00
7,365254.00
0.00
0.00
7,365250.00
DUE TO C.V. UNIFIED SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
DUE TO DESERT SANDS SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00 148 945.000.00
0.00
7,190 000.00 156135,000.00
BONDS PAYABLE
TOTAL LONG TERM DEBT
0.00
0.00
1.625259.95
0.00
.0.00 153AW.254.00
0.00
7,19D,000.00
167275.513.96
14,123.188.71
0.00
1.625259.98
33,101,576.72
0.00
158,460254.00
0.00
7.190.000.00
214,500279.39
TOTAL LIABILITIES
EQUITY -FUND BALANCE
64,193.779.85 306249,652.60
OAO
65279,032.99 52.0 . 56.306.00
0.00
5,732.65
0.00
487,794,504.09
78.316 968 56 306249 852 BD
1 825259 96
98 380 809 71 52 066 305.00 158.460254.00
5,732.a4
7.190.000.00 702ajZ83.48
TOTAL LIABILITY i EQUITY
0.08
0.00
0.00
0.00
0.00
0.00
O.OD
0 DO
0 08
CASH & INVESTMENT TOTAL
130,120.017.11
PREMRIM/DISCOUNT ON INVESTMENT
146,207.81
TOTAL
130266224.92
12
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INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 9, 2004
Continued Consideration of Fiscal Year 2004/05
Investment Policies
BACKGROUND:
Business Session No. B
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.
During the last several months, the Board has met to update the City Investment
Policy. A strike out version of the Investment Policy has been attached
Pursuant to the Investment Policy, the Board meets with the City Manager and City
Attorney to discuss the Investment Policy before they are forwarded to the City
Council for their consideration.
An Executive Summary of the proposed changes to the Investment Policy for FY 04/05
has been attached.
RECOMMENDATION:
Forward the revised Investment Policy to the City Council for their consideration with
an appropriate recommendation.
JoIW M . Falconer�,� Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section Topic
Page
Executive Summary
2
I
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
4
► Safety
► Liquidity
► Yield
► Diversified Portfolio
V
Maximum Maturities
6
VI
Prudence
6
VII
Delegation of Authority
6
Vill
Conflict of Interest
7
IX
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
X
Authorized Investments and Limitations
9
XI
Investment Pools
13
Al
Safekeeping and Custody
13
XIII
Interest Earning Distribution Policy
13
XIV
Internal Controls and Independent Auditors
14
XV
Benchmark
15
XVI
Reporting Standards
15
XVII
Financial Assets and Investment Activity Not Subject to this Policy
16
XVIII
Investment of Bond Proceeds
16
IX
Investment Advisory Board - City of La Quinta
17
XX
Investment Policy Adoption
17
Appendices: A. Summary of Authorized Investments and Limitations
18
B. Municipal Code Ordinance 2.70 - Investment Advisory Board
19
C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
20
D. Segregation of Major Investment Responsibilities
22
E. Listing of Approved Financial Institutions
23
F. Broker/Dealer Questionnaire and Certification
24
G. Investment Pool Questionnaire
29
H. Glossary
33
1
City of La Quinta
Investment Policy
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards
users must follow in investing funds of the City of La Quinta.
It is the policy of the City of La Quinta to invest all public funds in a manner which
will provide a diversified portfolio with maximum security while meeting daily cash
flow demands and the highest investment return in conformity to all state and local
statutes. This Policy applies to all cash and investments of the City of La Quinta, La
Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter
referred in this document as the "City".
The primary objectives, in order of priority, of the City of La Quinta's investment
activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as the probable income to be deriveo.
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
2
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.
Collateral ization will be required for Certificates of Deposits in excess of $100,000.
Collateral will always be held by an independent third party from the institution that
sells the Certificates of Deposit to the City. Evidence of compliance with State
Collateral ization policies must be supplied to the City and retained by the City
Treasurer.
The City of La Quinta Investment Policy shall require that each individual investment
have a maximum maturity of two years unless specific approval is authorized by the
City Council, 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.
The Investment Policies shall be adopted by resolution of the La Quinta City Council on
an annual basis. The Investment Policies will be adopted before the end of June of
each year.
This Executive Summary is an overall review of the City of La Quinta Investment
Policies. Reading this summary does not constitute a complete review, which can only
be accomplished by reviewing all the pages.
3
EIMM22-3
P.O. Box 1504
78-495 CALLE TAMPICO
LA QUINTA, CALIFORNIA 92253
City of La Quinta
Statement of Investment Policy
July 1, 2003 through June 30, 2004
Adopted by the City Council on June 17, 2003
GENERAL PURPOSE
(760) 7 7 7 - 7 0 0 0
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, except as further detailed in
Section XVII of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of
La Quinta Financing Authority, hereafter referred in this document as the "City". These funds
are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and
include:
All funds within the following fund types:
► General
► Special Revenue
► Capital Projects
► Debt Service
► Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The primary objective, in order of priority, of the City of La Quinta's investment activity shall
be:
4
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Ouinta 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
principal;
► 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
5
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 rates. 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 2003/04, the amount of such funds was $5
million. Funds up to that amount may be invested in U.S. Treasury bills, notes and
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 exercise 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
h written procedures for the operation of the
e Investment Policy. Procedures should include
:r agreements, banking service contracts, and
h procedures shall include explicit delegation of
testment transactions. No person may engage
s provided under the terms of this Investment
by the City Treasurer. The City Treasurer shall
;rtaken and shall establish a system of controls
s officials. The City Manager or Assistant City
ties of insuring that investments are made
nce of improper influence.
amity Manager, and the City Treasurer shall
Economic Interest and to the following:
Manager, and the City Treasurer shall not
maintain any accounts, interest, or private
h 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 direct investment purposes. I-n addition a list will also be
maintained of approved broker/dealers selected by credit worthiness, who maintain an
office in the State of California.
N
1. Broker/Dealers who desire to become bidders for Ml investment transactions
must supply the City of La Quinta with the following:
► Current audited financial statements
► Proof of National Association of Security Dealers Certification
► Trading resolution
► Proof of California registration
► Resume of Financial broker
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy
The City Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm and
individual conducting investment related business.
The City Treasurer will also contact the following agencies during the
verification process:
► National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment services
will be approved by the City Manager subject to City Council approval. The City
Attorney will perform a legal review of the trading resolution/investment
contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
receive City funds for deposit or investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions having accounts insured by the Federal Deposit
Insurance Corporation (FDIC)
B. Collateral - The amount of City of La Quinta deposits or
investments not insured by the FDIC -shall be 1 10% collateralized
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
C. Disclosure- Each financial institution maintaining invested funds in
excess of the FDIC insured amount shall furnish the City a copy of
the most recent Annual Call Report.
The City shall not invest in excess of the FDIC insured amount in
banking institutions which do not disclose to the city a current
listing of securities pledged for collateralization in public monies.
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 25% of the portfolio.
U.S. Government and Related Issues - As authorized in Government Code
Sections 53601 (a) through (n) as they pertain to surplus funds, this category
includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or other
indebtedness. The City of La Quinta Investment Policy does not allow
investments in local and state indebtedness
• U.S. Treasury bills, notes and bonds 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.
K
• U.S. Government instrumentalities and agencies commonly referred to as
government sponsored enterprises (GSEs), issuing securities not backed
as to principal and interests by the full faith and credit of the U.S.
Government. Publicly owned GSEs include Federal National Mortgage
Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC)
and Student Loan Marketing Association (SLMA). Non -publicly owned
GSEs include the Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit
Bank (FICB). The City of La Quinta Investment Policy allows investment
only in securities of FNMA, FHLMC, FHLB and FFCB and has a limitation
of $7.6 ON million face amount for each issuer.
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 w ith
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 government securities to be resold at
a specific date and for a specific amount. Repurchase agreements are generally
used for short term investments varying from one day to two weeks. There is
no legal limitation on the amount of the repurchase agreement. However, the
maturity period cannot exceed one year. The market value of securities
underlying a repurchase agreement shall be at least 102% of the
funds invested and shall be valued at least quarterly.
10
The City of La Quinta Investment Policy does not allow investment in
Repurchase Agreements.
The term "reverse repurchase agreement" means the sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and for a specific
amount. As provided in Government Code Section 53635, reverse repurchase
agreements require the prior approval of the City Council. The City of La Quinta
Investment Policy does not allow investment in Reverse Repurchase
Agreements.
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
11
maximum period of five years in an amount not to exceed 20% of the agency' s
portfolio. Securities eligible for investment shall have a "A" or higher rating.
The City of La Quinta Investment Policy does not allow investment in Mortgage -
Backed Securities.
Financial Futures and Financial Option Contracts - As authorized in Government
Code Section 53601.1, local agencies may invest in financial futures or option
contracts in any of the above investment categories subject to the same overall
portfolio limitations.
The City of La Quinta Investment Policy does not allow investments in financial
futures and financial option contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
collateralized from 1 10% to 150% depending on the specific security pledged
as collateral in accordance with Government Code Section 53652. There are
no portfolio limits on the amount or maturity for this investment vehicle.
Collateralization will be required for Certificates of Deposits in excess of the
FDIC insured amount. The type of collateral is limited to City authorized
investments. Collateral will always be held by an independent third party from
the institution that sells the Certificates of Deposit to the City. Evidence of
compliance with State Collateralization policies must be supplied to the City and
retained by the City Treasurer as follows:
1. Certificates of Deposits Insured by the FDIC.
The City Treasurer may waive collateral ization of a deposit that is
federally insured.
2. Certificates of Deposit in excess of FDIC Limits.
The amount not federally insured shall be 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
U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
Derivatives - The City of La Quinta Investment Policy does not allow investment
in derivatives.
12
XI 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 City of La Quinta Investment Policy has authorized investment with the State of
California' s Treasurers Office Local Agency Investment Fund commonly referred to as
LAIF. LAW 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
LA I F.
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.
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 LAW shall also operate on a DVP basis to be considered for
investment.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are 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 tonal 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.
13
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.
While no internal control system, however elaborate, can guarantee absolute assurance
that the City's assets"are safeguarded, it is the intent of the City's internal control to
provide a reasonable assurance that management of the investment function meets the
City's objectives.
The internal controls shall address the following:
a. Control of collusion. Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record 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
14
internal control structure that is contingent on the various staff positions and
their respective responsibilities as outlined in the Segregation of Major
Investment Responsibilities appendices.
f. Written confirmation or telephone transactions for investments and wire
transfers. Due to the potential for error and improprieties arising from telephone
transactions, all telephone transactions shall be supported by written
communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and the safekeeping institution
has a list of authorized signatures. Fax correspondence must be supported by
evidence of verbal or written follow-up.
g. Development of a wire transfer agreement with the City's bank and third party
custodian. This agreement should outline the various controls, security
provisions, and delineate responsibilities of each party making and receiving wire
transfers.
The System of Internal Controls developed by the City, shall be reviewed annually by
the independent auditor in connection with the annual audit of the City of La Quinta's
Financial Statements.
The independent auditor's management letter comments pertaining to cash and
investments, if any, shall be directed to the City Manager who will direct the City
Treasurer to provide a written response to the independent auditor's letter. The
management letter comments pertaining to cash and investment activities and the City
Treasurer's response shall be provided to the City's Investment Advisory Board for
their consideration. Following the completion of each annual audit, the independent
auditor shall meet with the Investment Advisory Board and discuss the auditing
procedures performed and the review of internal controls for cash and investment
activities.
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
15
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 City Treasurer;
► A listing of Purchases and sales/maturities of investments;
► Cash and Investments categorized by authorized investments, except for
LAIF which will be provided quarterly and show yield and maturity;
► Comparison of month end actual holdings to Investment Policy
limitations;
► Current year and prior year monthly history of cash and investments for
trend analysis;
► Balance Sheet;
► Distribution of cash and investment balances by fund;
► A comparison of actual and surplus funds;
► A year to date historical cash flow analysis and projection for the next six
months;
► A two-year list of historical interest rates.
XVII FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS
POLICY
The City' s Investment Policy does not apply to the following:
• Cash and Investments raised from Conduit Debt Financing;
• Funds held in trust in the City' s name in pension or other post -retirement
benefit programs;
• Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects;
• Short or long term loans made to other entities by the City or Agency; and,
• Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency.
VVIII 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.
4
16
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.
WIN INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) consists of five members of the community that
have been appointed by and report to the City Council. The IAB usually meets on a
monthly basis, but at least quarterly to (1) review at least annually the City's
Investment Policy and recommend appropriate changes; (2) review monthly Treasury
Report and note compliance with the Investment Policy and adequacy of cash and
investments for anticipated obligations; (3) receive and consider other reports provided
by the City Treasurer; (4) meet with the independent auditor after completion of the
annual audit of the City's financial statements, and receive and consider the auditor' s
comments on auditing procedures, internal controls and findings for cash and
investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions,
custodians, brokers and dealers.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory
Board Provisions.
XX 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
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.
17
Appendix B
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (the"board") is a standing board composed of five (5)
members from the public that are appointed by city council. La Quinta residency is required
except for Board Members currently serving on the Board as of June 30, 2003
C. Background in the investment field and/or related •experience is preferred. Background
information will be required and potential candidates must agree to a background check and
verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City
Council with a disclosure statement which identifies any matters that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates
will be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
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.
19
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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)
20
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the
terms of any state law, including but not limited to Section 53608 of the Government
Code as it now reads or may hereafter be amended. In accordance with said section,
the city treasurer shall take from the institution or depository a receipt for the
securities so deposited and shall not be responsible for the securities delivered to and
receipted for by the institution or depository until they are withdrawn therefrom by the
city treasurer. (Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in
accordance with Section 36523 and 26524 of the Government code and any other
applicable provisions of law. (Ord. 2 § 1 (part), 1982)
21
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function
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
Reconcile investment records
- to Treasurers Report
of investments
Security of investments at City
Security of investments Outside City
Review internal control procedures
22
Financial Services Assistant
Accounting Manager
Vault
Third Party Custodian
External Auditor
■
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, California
2. Custodian Services - Bank of New York, Los Angeles,
California
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Merrill Lynch, Los Angeles, CA
Morgan Stanley, Los An eles, California
Newport Beach, CA
5. Government Pool - State of California Local Agency
Investment Fund
City of La Quinta Account
La Quinta Redevelopment Agency
No Changes to this listing may be made without City Council approval
23
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:
2. Address:
3.
0
5.
Telephone: ( ) ( )
Broker's Representative to the City (attach resume) :
Name:
Title:
Telephone: ( )
Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City employees
(attach resume)
Name:
Title:
Telephone: ( ) ( )
7. Which of the above personnel have read the City's Investment Policy?
8. Which instruments are offered regularly by your local office? (Must equal
100%)
% U.S. Treasuries % Repos
% BA's % Reverse Repos
% Commercial Paper % CMO's
% CD's % Derivatives
% Mutual Funds % Stocks/Equities
% Agencies (specify) : % Other (specify) :
24
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.
12.
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.
Has a client ever claimed in writing that you were responsible for an
investment loss? Yes No If yes, please provide
action taken
Has a client ever claimed in writing that your firm was responsible for an
investment loss? Yes No If yes, please provide
action taken
25
Do 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.
ffe-1
Is your firm a member in the S.I.P.C. insurance program. Yes
If yes, explain primary and excess coverage and carriers.
17. What portfolio information, if any, do you require from your clients?
NLV
we
18. What reports and transaction confirmations or any other research publications will
the City receive?
19. Does your firm offer investment training to your clients? Yes No
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date.
21.
22.
Please list your NASD Registration Number,
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
23. Do you maintain an office in California. Yes . No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
X Latest audited financial statements.
X Samples of reports, transaction confirmations and any other
research/publications the City will receive.
X Samples of research reports and/or publications that your firm regularly
provides to clients.
X Complete schedule of fees and charges for various transactions.
'CERTIFICATION'
*CERTIFICATION*
I hereby certify that I have personally read the Statement of Investment Policy of the City
of La Quinta, and have implemented reasonable procedures and a system of controls
designed to preclude imprudent investment activities arising out of transactions
conducted between our firm and the City of La Quinta. All sales personnel will be
routinely informed of the City's investment objectives, horizons, outlooks, strategies and
risk constraints whenever we are so advised by the City. We pledge to exercise due
diligence in informing the City of La Quinta of all foreseeable risks associated with
financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all
background checks.
27
Under penalties of perjury, the responses to this questionnaire are true and accurate to
the best of my knowledge.
Broker
Date_
Sales
Date
Representative
Manager and/or
Title
Managing
Title
Partner*
WP
Appendix G
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the.following questions and issues should be considered.
SECURITIES
Government pools may invest in a broader range of securities than your entity invests in.
It is important that you are aware of, and are comfortable with, the securities the pool
buys.
1. Does the pool provide a written statement of Investment Policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?
4. Does the pool contain only the types of securities that are permitted by your
Investment Policy?
INTEREST
Interest is not reported in a standard format, so it is important that you know how
interest is quoted, calculated and distributed so that you can make comparisons with
other investment alternatives.
Interest Calculations
1. Does the pool disclose the following about yield calculations:
a. The methodology used to calculate interest? (Simple maturity, yield to maturity,
etc.)
b. The frequency of interest payments?
c. How interest is paid? (Credited to principal at the end of the month, each quarter;
mailed?)
d. How are gains/losses reported? Factored monthly or only when realized?
29
REPORTING
1. Is the yield reported to participants of the pool monthly? (If not, how often?)
2. Are expenses of the pool deducted before quoting the yield?
3. Is the yield generally in line with the market yields for securities in which you usually
invest?
4. How often does the pool report, and does that report include the market value of
securities?
SECURITY
The following questions are designed to help you safeguard your funds from loss of
principal and loss of market value.
1. Does the pool disclose safekeeping practices?
2. Is the pool subject to audit by an independent auditor?
3. Is a copy of the audit report available to participants?
4. Who makes the portfolio decisions?
5. How does the manager monitor the credit risk of the securities in the pool?
6. Is the pool monitored by someone on the board of a separate neutral party external to
the investment function to ensure compliance with written policies?
7. Does the pool have specific policies with regards to the various investment vehicles?
a. What are the different investment alternatives?
b. What are the policies for each type of investment?
8. Does the pool mark the portfolio to its market value?
9. Does the pool disclose the following about how portfolio securities are valued:
a. The frequency with which the portfolio3ecurities are valued?
b. The method used to value the portfolio (cost, current value, or some other
method)?
30
OPERA TIONS
The answers to these questions will help you determine whether this pool meets your
operational requirements:
1. Does the pool limit eligible participants?
2. What entities are permitted to invest in the pool?
3. Does the pool allow multiple accounts and sub -accounts?
4. Is there a minimum or maximum account size?
5. Does the pool limit the number of transactions each month? What is the number
of transactions permitted each month?
6. Is there a limit on transaction amounts for withdrawals and deposits?
a. What is the minimum and maximum withdrawal amount permitted?
b. What is the minimum and maximum deposit amount permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
11. What are the procedures for making deposits and withdrawals?
a. What is the paperwork required, if any?
b. What is the wiring process?
12. Can an account remain open with a zero balance?
13. Are confirmations sent following each transaction?
STA TEMENTS
It is important for you and the agency's trustee (when applicable), to receive statements
monthly so the pool's records of your activity and holding are reconciled by you and
your trustee.
31
1. Are statements for each account sent to participants?
a. What are the fees?
b. How often are they passed?
c. How are they paid?
d. Are there additional fees for wiring funds (what is the fee)?
2. Are expenses deducted before quoting the yield?
QUESTIONS TO CONSIDER FOR BOND PROCEEDS
,x
It is important to know (1) whether the pool accepts bond proceeds and (2) whether the
pool qualifies with the U.S. Department of the Treasury as an acceptable commingled
fund for arbitrage purposes.
1. Does the pool accept bond proceeds subject to arbitrage rebate?
2. Does the pool provide accounting and investment records suitable for proceeds of
bond issuance subject to arbitrage rebate?
3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have
to be recalculated?
4. Will the pool accept transaction instructions from a trustee?
5. Are you allowed to have separate accounts for each bond issue so that you do not
commingle the interest earnings of funds subject to rebate with funds not subject to
regulations?'
32
Appendix H
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or
Government -sponsored enterprises.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill of
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of
the bill, as well as the issuer.
BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a
bid.) See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a
certificate. Large -denomination CD's are
typically negotiable.
COLLATERAL: Securities, evidence of deposit or
other property which a borrower pledges to
secure repayment of a loan. Also refers to
seourities pledged by a bank to secure deposits
of public monies.
COMMERCIAL PAPER: Short-term unsecured
promissory notes issued by a corporation to raise
working capital. These negotiable instruments
are purchased at a discount to par value or at par
value with interest bearing. Commercial paper is
issued by corporations such as General Motors
Acceptance Corporation, IBM, Bank America, etc.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR): The official annual report for the City of
La Quinta. It includes five combined statements
33
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.
CONDUIT FINANCING: A form of Financing in
which a government or a government agency
lends its name to a bond issue, although it is
acting only as a conduit between a specific project
and bond holders. The bond holders can look only
to the revenues from the project being financed
for repayment and not to the government or
agency whose name appears on the bond.
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).
DISCOUNT: The difference between the cost
price of a security and its maturity when quoted
at lower than face value. A security selling
below original offering price shortly after sale also
is considered to be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering
independent returns.
are issued with maturities of less than one
year and interest is paid at maturity.
3. FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The
minimum denomination is $1,000. They carry
semi-annual coupons. Interest is calculated on
a 360-day, 30 day month basis.
4.
FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals, 5.
e.g., S&L's, small business firms, students,
farmers, farm cooperatives, and exporters.
1. FNMAs (Federal National Mortgage
Association) - Used to assist the home
mortgage market by purchasing mortgages
insured by the Federal Housing
Administration and the Farmers Home
Administration, as well as those guaranteed by
the Veterans Administration. They are issued in
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
monthly.
2. , FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide
liquidity and home mortgage credit to savings
and loan associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
34
FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and the
national agricultural industry. They are issued
monthly with three- and six-month maturities.
The FFCB issues larger issues (one to ten
year) on a periodic basis. These issues are
highly liquid.
FICBs (Federal Intermediate Credit bank
Debentures) - Loans to lending institutions
used to finance the short-term and
intermediate needs of farmers, such as
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
with a nine -month maturity. Interest is
payable at maturity and is calculated on a
360-day, 30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
established in 1970 to provide a secondary
market for ^ conventional home mortgages.
Morgages are purchased solely from the
Federal home Loan Bank System member
lending institutions whose deposits are insured
by agencies of the United States Government.
They are issued for various maturities and in
minimum denominations of $10,000. Principal
and Interest is paid monthly. Other federal
agency issues are Small Business
Administration notes (SBAs), Government
National Mortgage Association notes
(GNMAs), Tennessee Valley Authority notes
(TVAs), and Student Loan Association notes
(SALLIE-MAEs).
FEDERAL DEPOSITOR INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $100,000
per deposit.
FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is
currently pegged by the Federal Reserve through
open -market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks
(currently 12 regional banks) which lend funds
and provide correspondent banking services to
member commercial banks, thrift institutions,
credit unions and insurance companies. The
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase
stock in their district Bank.
FEDERAL OPEN MARKET COMMITTEE (FOMC):
Consists of seven members of the Federal
Reserve Board and five of the twelve Federal
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent
member, while the other Presidents serve on a
rotating basis. The Committee periodically meets
to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in
the open market as a means of influencing the
volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and
consisting of a seven member Board of
Governors in Washington, D.C., 12 regional
banks and about 5,700 commercial banks that
are members of the system.
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,
35
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 "passthrough" is
often used to describe Ginnie Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There is
no minimum investment period and the minimum
transaction is $ 5,000, in multiples of $1,000
above that, with a maximum balance of
$30,000,000 for any agency. The City is
restricted to a maximum of ten transactions per
month. It offers high liquidity because deposits
can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
agencies participating on. a proportionate share
basis determined by the amounts deposited and
the length of time they are deposited. Interest is
paid quarterly. The State retains an amount for
reasonable costs of making the investments, not
to exceed one -quarter of one percent of the
earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between
the parties to repurchase --reverse repurchase
agreements that establishes each party' s rights in
the transactions. A master agreement will
often specify, among other things, the right of the
buyer -lender to liquidate the underlying securities
in the vent of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-
term debt instruments (bills, commercial paper,
bander' 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 and depositions and monthly
financial statements to the Federal Reserve Bank
of New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
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
36
commission eligible collateral having a value of not
less than its maximum liability and which has been
approved by the Public Deposit Protection
Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A
repurchase agreement is a short-term investment
transaction. Banks buy temporarily idle funds
from a customer by selling U.S. Government or
other securities with a contractual agreement to
repurchase the same securities on a future date.
Repurchase agreements are typically for one to
ten days in maturity. The customer receives
interest from the bank. The interest rate reflects
both the prevailing demand for Federal funds and
the maturity of the repo. Some banks will execute
repurchase agreements for a minimum of
$100,000 to $500,000, but most banks have a
minimum of $1,000,000.
REVERSE REPURCHASE AGREEMENTS (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security "buyer" in effect lends the "seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered
by banks for a fee whereby securities and
valuables of all types and descriptions are held in
the bank's vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors
in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMAS, SLMA, etc.) And Corporations which
have imbedded options (e.g., call features, step-
up coupons, floating rate coupons, derivative -
based returns) into their debt structure. Their
market performance is impacted by the
fluctuation of interest rates, the volatility of the
imbedded options and shifts in the Shape of the
yield curve.
SURPLUS FUNDS: Section 53601 of the
California Government Code defines surplus
funds as any money not required for immediate
necessities of the local agency: The City has
defined immediate necessities to be payment due
within one week.
TREASURY BILLS: A non -interest. bearing
discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued
to mature in three months, six months or one
year.
TREASURY BONDS: Long-term coupon -bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities of more than 10 years.
TREASURY NOTES: Medium -term coupon -bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
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.
37
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.
PAGE EXECUTIVE SUMMARY
Allow for the City to engage a professional investment portfolio.
10 Increasing GSE levels from $7.5 million per issurer to $10 million
11 Allow the investment of up to $3 million per issurer in Corporate Notes with ratings of "AA
or AAA," for up to two years.
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 9, 2004
Month End Cash Report - May 2004
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. This report also includes other statistical investment data
for the Board to review.
RECOMMENDATION:
Information item only.
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FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Pagel of 4
Federal Reserve Statistical Release
HA5
Selected Interest Rates (Daily)
Skits to Content
Release Date: May 28, 2004
Weekly_.._release_ dates_ and announcements. I Historical.._ 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 through Friday
H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release
SELECTED INTEREST RATES May 28, 2004
Yields in percent per annum
2004
2004
2004
2004
May
May
May
May
Instruments
24
25
26
27
Federal funds (effective) 1 2 3
1.00
1.00
0.99
1.00
Commercial paper 3 4 5
Nonfinancial
1-month
1.01
1.00
1.00
1.00
2-month
1.09
1.07
3-month
Financial
1-month
1.02
1.03
1.02
1.04
2-month
1.11
1.14
1.09
1.17
3-month
1.19
1.22
1.21
1.22
CDs (secondary market) 3 6
1-month
1.06
1.05
1.05
1.07
3-month
1.24
1.25
1.25
1.27
6-month
1.54
1.53
1.53
1.54
Eurodollar deposits (London) 3 7
1-month
1.03
1.03
1.03
1.03
3-month
1.22
1.22
1.23
1.24
6-month
1.52
1.51
1.52
1.51
Bank prime loan 2 3 8
4.00
4.00
4.00
4.00
Discount window primary credit 2 9
2.00
2.00
2.00
2.00
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
0.89
0.93
0.92
0.92
3-month
1.06
1.06
1.06
1.04
6-month
1.39
1.38
1.36
1.34
Treasury constant maturities
Nominal 10
1-month
0.92
0.95
0.94
0.94
3-month
1.07
1.07
1.08
1.06
6-month
1.41
1.41
1.39
1.37
1-year
1.86
1.84
1.81
1.77
2-year
2.59
2.58
2.52
2.46
3-year
3.17
3.16
3.08
3.02
5-year
3.90
3.89
3.81
3.74
7-year
4.36
4.34
4.27
4.20
10-year
4.75
4.73
4.67
4.60
3
http://www.federalreserve.gov/Releases/H 15/update/
6/l/2004
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Page 2 of 4
20-year
Inflation -indexed 11
5-year
7-year
10-year
Treasury long-term average
Nominal 12 13
Inflation -indexed 14
Interest rate swaps 15
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
Corporate bonds
Moody's seasoned
Aaa 16
Baa
State & local bonds 17
Conventional mortgages 18
See overleaf for footnotes
5.48
5.45
5.41
5.34
1.27
1.29
1.23
1.19
1.71
1.72
1.66
1.62
2.01
2.03
1.99
1.97
5.50
5.47
5.43
5.38
2.37
2.38
2.36
2.32
2.13
2.11
2.09
2.06
3.01
2.98
2.94
2.87
3.62
3.58
3.54
3.46
4.07
4.03
3.99
3.90
4.41
4.37
4.33
4.23
4.86
4.82
4.78
4.69
5.27
5.23
5.19
5.12
5.84
5.82
5.78
5.73
6.06
6.03
6.00
5.93
6.77
6.75
6.72
6.65
5.01
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). 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
(www.federalreserve.gov/releases/cp).
6. An average of dealer offering rates on nationally traded certificates of deposit.
7. Bid rates for Eurodollar deposits collected around 9:30
a.m. Eastern time.
8. 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.
9. The rate charged for discounts made and advances extended under
the Federal Reserve's primary credit discount window program, which
became effective January 9, 2003. This rate replaces that for
adjustment credit, which was discontinued after January 8, 2003. For
further information, see
4
http://www.federalreserve.gov/Releases/H 15/update/ 6/1 /2004
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Page 3 of 4
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.
10. Yields on actively traded non -inflation -index issues adjusted to
constant maturities. Source: U.S. Treasury.
11. Yields on Treasury inflation protected securities (TIPS)
adjusted to constant maturities. Source: U.S. Treasury.
Additional information on both nominal and inflation -indexed
yields may be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html.
12. Based on the unweighted average of the bid yields for all
non -inflation -index Treasury fixed -coupon securities with
remaining terms to maturity of 25 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
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex
14. Based on the unweighted average bid yields for all Inflation
Protected Securities with remaining terms to maturity of more than
10 years.
15. 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.
16. 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.
17. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
18. Contract interest rates on commitments for fixed-rate first
mortgages. Source: FHLMC.
DESCRIPTION OF THE TREASURY NOMINAL AND INFLATION -INDEXED
CONSTANT MATURITY SERIES
Yields on Treasury nominal securities at "constant maturity" are
interpolated by the U.S. Treasury from the daily yield curve for
non -inflation -indexed Treasury securities. 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. Similarly, yields on inflation -indexed securities at
"constant maturity" are interpolated from the daily yield curve for.
Treasury inflation protected securities in the over-the-counter market.
The inflation -indexed constant maturity yields are read from this yield
curve at fixed maturities, currently 5, 7, and 10 years.
Weeklv release dates and announcements I Historical data I About.
Daily update Other formats: Screen. reader I ASCII
Statistical releases
hap://www.federalreserve.gQv/Releases/HI5/update/ 6/1/2004
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 28, 2004 Page 4 of 4
Home I Economic research and data
Accessibilitv_ I Contact L s
Last update: May 28, 2004
6
http://www.federalreserve.gov/Releases/HI 5/update/ 6/1/2004
FRB: H. 1 5--Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Page 1 of 4
Federal Reserve Statistical Release
H*15
Selected Interest Rates (Daily)
Skip to Content
Release Date: May 28, 2004
Weekly._ release. dates.._ and._announcements 1 Historicaldata 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 through Friday
H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release
SELECTED INTEREST RATES May 28, 2004
Yields in percent per annum
Instruments
Federal funds (effective) 1 2 3
Commercial paper 3 4 5
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
CDs (secondary market) 3 6
1-month
3-month
6-month
Eurodollar deposits (London) 3 7
1-month
3-month
6-month
Bank prime loan 2 3 8
Discount window primary credit 2 9
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
3-month
6-month
Treasury constant maturities
Nominal 10
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
2004
2004
2004
2004
May
May
May
May
24
25
26
27
1.00
1.00
0.99
1.00
1.01 1.00 1.00 1.00
1.09 1.07
1.02
1.03
1.02
1.04
1.11
1.14
1.09
1.17
1.19
1.22
1.21
1.22
1.06
1.05
1.05
1.07
1.24
1.25
1.25
1.27
1.54
1.53
1.53
1.54
1.03
1.03
1.03
1.03
1.22
1.22
1.23
1.24
1.52
1.51
1.52
1.51
4.00
4.00
4.00
4.00
2.00
2.00
2.00
2.00
0.89
0.93
0.92
0.92
1.06
1.06
1.06
1.04
1.39
1.38
1.36
1.34
0.92
0.95
0.94
0.94
1.07
1.07
1.08
1.06
1.41
1.41
1.39
1.37
1.86
1.84
1.81
1.77
2.59
2.58
2.52
2.46
3.17
3.16
3.08
3.02
3.90
3.89
3.81
3.74
4.36
4.34
4.27
4.20
4.75
4.73
4.67
4.60
h"://www.federalreserve.gov/Releases/H 15/update/
6/1/2004
FRB: H. 15 --Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Page 2 of 4
20-year
Inflation -indexed 11
5-year
7-year
10-year
Treasury long-term average
Nominal 12 13
Inflation -indexed 14
Interest rate swaps 15
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
Corporate bonds
Moody's seasoned
Aaa 16
Baa
State & local bonds 17
Conventional mortgages 18
See overleaf for footnotes
5.48
5.45
5.41
5.34
1.27
1.29
1.23
1.19
1.71
1.72
1.66
1.62
2.01
2.03
1.99
1.97
5.50
5.47
5.43
5.38
2.37
2.38
2.36
2.32
2.13
2.11
2.09
2.06
3.01
2.98
2.94
2.87
3.62
3.58
3.54
3.46
4.07
4.03
3.99
3.90
4.41
4.37
4.33
4.23
4.86
4.82
4.78
4.69
5.27
5.23
5.19
5.12
5.84
5.82
5.78
5.73
6.06
6.03
6.00
5.93
6.77
6.75
6.72
6.65
5.01
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.
S. 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). 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
(www.federalreserve.gov/releases/cp).
6. An average of dealer offering rates on nationally traded certificates of deposit.
7. Bid rates for Eurodollar deposits collected around 9:30
a.m. Eastern time.
8. 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.
9. The rate charged for discounts made and advances extended under
the Federal Reserve's primary credit discount window program, which
became effective January 9, 2003. This rate replaces that for
adjustment credit, which was discontinued after January 8, 2003. For
further information, see
nttp://www.federalreserve.gov/Releases/Hl 5/update/ 6/1 /2004
FRB: H. I 5--Selected Interested Rates, Web -Only Daily Update --May 28, 2004
Page 3 of 4
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.
10. Yields on actively traded non -inflation -index issues adjusted to
constant maturities. Source: U.S. Treasury.
11. Yields on Treasury inflation protected securities (TIPS)
adjusted to constant maturities. Source: U.S. Treasury.
Additional information on both nominal and inflation -indexed
yields may be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html.
12. Based on the unweighted average of the bid yields for all
non -inflation -index Treasury fixed -coupon securities with
remaining terms to maturity of 25 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
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/itcompositeindeN
14. Based on the unweighted average bid yields for all Inflation
Protected Securities with remaining terms to maturity of more than
10 years.
15. 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.
16. 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.
17. Bond Buyer Index, general obligation, 20 years to maturity, mixed
quality; Thursday quotations.
18. Contract interest rates on commitments for fixed-rate first
mortgages. Source: FHLMC.
DESCRIPTION OF THE TREASURY NOMINAL AND INFLATION -INDEXED
CONSTANT MATURITY SERIES
Yields on Treasury nominal securities at "constant maturity" are
interpolated by the U.S. Treasury from the daily yield curve for
non -inflation -indexed Treasury securities. 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. Similarly, yields on inflation -indexed securities at
"constant maturity" are interpolated from the daily yield curve for
Treasury inflation protected securities in the over-the-counter market.
The inflation -indexed constant maturity yields are read from this yield
curve at fixed maturities, currently 5, 7, and 10 years.
Weekly release dates and announcements I Historical data I About
Daily update Other formats: Screen.reader I ASCII.
Statistical releases
http://www.federalreserve.gov/Releases/H 15/update/ 6/l /2004
FRB: H.15--Selected Interested Rates, Web -Only Daily Update --May 28, 2004 Page 4 of 4
Home f Econotnic research and data
Accessibift I Contact Us
Last update: May 28, 2004
..� 10.
http://www.federalreserve.gov/Releases/HI 5/update/ 6/1/2004
FRB:Commercial Paper Rates and Outstandings
Page 1 of 3
Federal Reserve Release
Commercial Paper
Release I About I Outstandings I Historical discount rates I Historical outstandings
Data as of May 27, 2004
Commercial Paper Rates and Outstandings
Derived from data supplied by The Depository Trust Company
Trade data insufficient to support calculation of the 60-day AA nonfinancial and 90-day AA nonfinancial rate(s) for May 27, 2004.
Posted May 28, 2004
Discount rates
AA
AA
A2/P2
Term
financial
nonfinancial
nonfinancial
1-day 0.98 11 1.00 1 1.05
7-day 1.01 1.04 1.10
15-day 1.03 1.01 1.11
30-day 1.04 1.00 1.15 11
60-day 1.17 ND 1.24
-]1
190-day 11 1.22 ND 135
Yield curve
Morley market basis
Financial
_ _ _ Nonfinancial
.-.__r_. A2/P2
Percent
1 7 15 30 60 90
Days to Maturity
http://www.federalreserve.gov/Releases/CP/ 6/l/2004
FRB:Commercial Paper Rates and Outstandings
Page 2 of 3
Discount rate spread
2001 2002 2003
Discount rate history
Thirty -day commercial gaper (daily)
financial
-- — — Nonfinancial
...........
on
2002
Outstandings
Weekly (Wednesday), seasonally adjusted
2003
Basis paints l20
100
80
60
40
20
0
2004
Percent
— 15
4
3
2
0
http://www.federalreserve.gov/Releases/CP/
12
6/1/2004
FRB:Commercial Paper Rates and Outstandings
Page 3 of 3
Billions of dollars
1260
1.240
1220
1200
1.180
11,60
1140 2001
23
Billions of dollars
zVV
Y
10
LIJ
X
The daily commercial paper release will usually be available before 11:OOam 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 2004 :Ql
Release I About Outstandin s, I Historical discount rates Historical outstandings
Home ( Statistical releases
AccessibilityI Contact Us
Last update: May 28, 2004
�13
http://www.federalreserve.gov/Releases/CP/ 6/ 1 /2004
Phil Angelides, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
LAIF Performance Report
Quarter Ending 03/31/04
Apportionment Rate: 1.47%
Earnings Ratio: .00004028428658015
Fair Value Factor: 1.000754626
PMIA Average Monthly Effective Yields
February 2004 1.440%
March 2004 1.474%
April 2004 1.445%
Pooled Money Investment Account
Portfolio Composition
$60.7 Billion
04/30/04
Loans Treasuries
Corporate 8.66% 13.54%
Commercial
Paper
18.30%
Tir
Depi
9.2.
CD's/BN's
21.28%
Igages
1.01 %
Agencies
26.08%
■ Treasuries
O Mortgages
®Agencies
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OTime Deposits
® Bankers Acceptances
■ Repo
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INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
June 9, 2004
Pooled Money Investment Board Report
for March 2004
BACKGROUND:
Correspondence & Written
Material Item B
The Pooled Money Investment Board Report for March, 2004
RECOMMENDATION:
Receive & File
John M. Falcdner, Finance Director
Philip Angelides
March 2004
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
March 2004.
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIME DEPOSITS........................................................ 17
BANK DEMAND DEPOSITS .......................................... 28
POOLED MONEY INVESTMENT BOARD DESIGNATION... 29
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF MARCH 2O04 WITH MARCH 2O03
(DOLLARS IN THOUSANDS)
MARCH 2004 MARCH 2O03 CHANGE
Average Daily Portfolio $ 62,164,802 $ 63,823,686 $-1,658,783
Accrued Earnings $ 66,109 $ 87,028-21,919
Effective Yield 1.474 1.904 -0.43
Average Life -Month End (In Days)
159
161
-2
Total Security Transactions
Amount
$
19,768,937
$
18,233,046
$
+1,525,891
Number
426
397
+29
Total Time Deposit Transactions
Amount
$
2,090,700
$
2,156,000
$
-64,300
Number
138
142
-4
Average Workday Investment Activity
$
993,166
$
1,019,402
$
-26,237
Prescribed Demand Account Balances
For Services
$
1,337,090
$
1,008,445
$
+328,645
For Uncollected Funds
$
136,419
$
97,385
+39,034
1
PHILIP ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
TYPE OF SECURITY
Government
Bills
Bonds
Notes
Strips
Total Government
Federal Agency Coupons
Certificates of Deposit
Bank Notes
Bankers' Acceptances
Repurchases
Federal Agency Discount Notes
Time Deposits
GNMAs
Commercial Paper
FHLMC
Corporate Bonds
Pooled Loans
GF Loans
Reversed Repurchases
Total (All Types)
INVESTMENT ACTIVITY
Pooled Money
Other
Time Deposits
Totals
PMIA Monthly Average Effective Yield
Year to Date Yield Last Day of Month
March 31, 2004
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
AMOUNT
PORTFOLIO
PRIOR MONTH
$ 1,094,783
2.11
-0.11
0
0.00
0.00
6,147,707
11.84
-0.77
0
0.00
0.00
$ 7,242,490
13.95
-0.88
$ 3,915,362
7.54
+0.29
7,935,044
15.29
+1.79
808,635
1.56
-0.13
0
0.00
0.00
0
0.00
-0.18
9,165,817
17.66
+0.33
5,881,295
11.33
+0.49
492
0.00
0.00
8,016,691
15.45
-3.64
3,567
0.01
0.00
1,791,202
3.46
+0.09
6,208,431
11.96
+0.90
928,600
1.79
+0.84
0
0.00
0.00
$ 51,897,626
100.00
MARCH 2O04
NUMBER
AMOUNT
426
$ 19,768,937
14
285,852
138
2,090,700
578
$ 22,135,489
1.474
1.564
F
FEBRUARY 2004
NUMBER
AMOUNT
431
$ 19,802,686
41
848,339
125
2,315,600
597
$ 22,966,625
1.440
1.575
Corpc
Bon
3.4E
Commercial
Paper
15.45%
Pooled Money Investment Account
Portfolio Composition
$51.8 Billion
03/31 /04
Loans Treasuries
13.75% 412 o=oi
VG1.JVQ1 W
11.33% CD's/BN's
16.85%
3
tgages
01%
Agencies
25.20%
0 Treasuries
13 Mortgages
Agencies
E CD's/BN's
O Time Deposits
E9 Bankers Acceptances
■ Repo
Commercial Paper
■ Corporate Bonds
l Loans
■ Reverses
03101 /04 SALES c/
DISC NOTES
FHLB
03/26/04
1.050
25,000
3
2,140.60
1.064
DISC NOTES
FNMA
04/21/04
1.050
25,000
3
2,137.89
1.064
DISC NOTES
FNMA
05/26/04
1.050-
25,000
3
2,137.89
1.064
DISC NOTES
FHLB
05/28/04
1.050
27,323
3
2,333.63
1.064
03/01/04 REDEMPTIONS
BN
WORLD
1.040%
03/01/04
1.060
50,000
76
111,884.18
1.078
BN
WORLD
1.040%
03/01/04
1.060
50,000
76
111,884.18
1.078
BN
WORLD
1.040%
03/01/04
1.060
50,000
76
111,884.18
1.078
BN
WORLD
1.040%
03/01/04
1.060
50,000
76
111,884.18
1.078
CD
NOVA SCOT
1.070%
03/01/04
1.070
50,000
147
218,458.33
1.088
CD
NOVA SCOT
1.070%
03/01/04
1.070
50,000
147
218,458.33
1.088
CP
CITI GLOBAL
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
CITI GLOBAL
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
CITI GLOBAL
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
GE CO
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
GE CO
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
GE CO
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
GE CO
03/01/04
1.000
50,000
6
8,333.33
1.016
CP
DEERE
03/01/04
1.060
25,000
27
19,875.00
1.079
CP
CITICORP
03/01/04
1.065
50,000
69
102,062.50
1.085
CP
CITICORP
03/01/04
1.065
50,000
69
102,062.50
1.085
CP
CITICORP
03/01/04
1.070
50,000
70
104,027.78
1.090
CP
CITICORP
03/01/04
1.070
50,000
70
104,027.78
1.090
CP
CITICORP
03/01/04
1.070
50,000
70
104,027.78
1.090
CP
CITICORP
03/01/04
1.070
50,000
70
104,027.78
1.090
CP
GMAC
03/01/04
1.360
30,000
124
140,533.33
1.389
CP
CITI GLOBAL
03/01/04.
1.080
50,000
124
186,000.00
1.102
CP
CITI GLOBAL
03/01/04
1.080
50,000
124
-186,000.00
1.102
CP
CITI GLOBAL
03/01/04
1.080
50,000
124
186,000.00
1.102
CP
GMAC
03/01/04
1.360
50,000
124
234,222.22
1.389
CP
GMAC
03/01/04
1.360
50,000
124
234,222.22
1.389
CP
GECC
03/01/04
1.100
50,000
125
190,972.22
1.123
CP
GECC
03/01/04
1.100
50,000
125
190,972.22
1.123
CP
GMAC
03/01/04
1.340
50,000
139
258,694.44
1.369
CP
GMAC
03/01/04
1.340
50,000
139
258,694.44
1.369
CP
GECC
03/01/04
1.070
50,000
151
224,402.78
1.093
CP
GECC
03/01/04
1.070
50,000
151
224,402.78
1.093
03/01/04 PURCHASES
BN
WORLD
1.000% 04/26/04
1.020
50,000
BN
WORLD
1.000% 04/26/04
1.020
50,000
CP
AMER EXP
03/26/04
1.010
50,000
CP
AMER EXP
03/26/04
1.010
50,000
CP
AMER EXP
04/01/04
1.010
50,000
CP
AMER EXP
04/01/04
1.010
50,000
CP
FCAR
04/01/04
1.020
50,000
4
03/01/04 PURCHASES (continued)
CP
FCAR
04/01/04
1.020
50,000
CP
DEERE
04/06/04
1.040
25,000
CP
JP MORGAN
05/03/04
1.020
50,000
CP
JP MORGAN
05/03/04
1.020
50,000
CP
JP MORGAN
05/05/04
1.020
50,000
CP
JP MORGAN
05/05/04
1.020
50,000
CP
JP MORGAN
05/05/04
1.020
50,000
CP
JP MORGAN
05/05/04
1.020
50,000
CP
GECC
05/26/04
.1.030
50,000
CP
GECC
05/26/04
1.030
50,000
CP
CITICORP
05/26/04
1.050
50,000
CP
CITICORP
05/26/04
1.050
50,000
CP
CITICORP
05/26/04
1.050
50,000
CP
CITICORP
05/26/04
1.050
50,000
CP
GECC
05/28/04
1.030
50,000
CP
GECC
05/28/04
1.030
50,000
03/02/04 REDEMPTIONS
CD
CIBC
1.010%
03/02/04
1.010
50,000
7
9,819.45
1.027
CD
CIBC
1.010%
03/02/04
1.010
50,000
7
9,819.45
1.027
CD
CIBC
1.010%
03/02/04
1.010
50,000
7
9,819.45
1.027
CD
CIBC
1.010%
03/02/04
1.010
50,000
7
9,819.45
1.027
CP
GECC
03/02/04
1.000
50,000
5
6,944.44
1.017
CP
GECC
03/02/04
1.000
50,000
5
6,944.44
1.017
CP
GECC
03/02/04
1.000
50,000
5
6,944.44
1.017
CP
GECC
03/02/04
1.000
50,000
5
6,944.44
1.017
CP
W/F
03/02/04
0.999
20,000
6
3,300.00
1.007
CP
W/F
03/02/04
0.990
50,000
6
8,250.00
1.007
CP
W/F
03/02/04
0.999
50,000
6
8,250.00
1.007
CP
W/F
03/02/04
0.999
50,000
6
8,250.00
1.007
CP
GE CO
03/02/04
1.000
50,000
6
8,333.33
1.017
CP
GE CO
03/02/04
1.000
30,000
6
5,000.00
1.017
CP
CITI GLOBAL
03/02/04
1.010
50,000
8
11,222.22
1.027
CP
CITI GLOBAL
03/02/04
1.010
50,000
8
11,222.22
1.027
CP
CITI GLOBAL
03/02/04
1.010
50,000
8
11,222.22
1.027
CP
CITI GLOBAL
03/02/04
1.010
50,000
8
11,222.22
1.027
CP
GE CO
03/02/04
1.010
50,000
14
19,638.89
1.027
CP
GE CO
03/02/04
1.010
50,000
14
19,638.89
1.027
CP
CITI GLOBAL
03/02/04
1.020
50,000
14
19,833.33
1.037
CP
CITI GLOBAL
03/02/04
1.020
50,000
14
19,833.33
1.037
DISC NOTES
FHLB
03/02/04
0.940
50,000
6
7,833.33
0.956
03/02/04 NO PURCHASES
03/03/04 REDEMPTIONS
CP GECC 03/03/04 1.000 50,000 7 9,722.22 1.017
CP GECC 03/03/04 1.000 50,000 7 9,722.22 1.017
CP CITI GLOBAL 03/03/04 1.020 50,000 21 29,750.00 1.038
5
03/03/04
REDEMPTIONS (continued)
CID
CITI GLOBAL
03/03/04
NO PURCHASES
03/04/04
REDEMPTIONS
CID
AMER EXP
CID
AMER EXP
CID
AMER EXP
CID
AMER EXP
CID
AMER EXP
CID
AMER EXP
03/04/04
PURCHASES
CD
TORONTO
CD
TORONTO
CD
TORONTO
CD
TORONTO
CID
DISNEY
CID
B/A
CID
B/A
CID
SAFEWAY
CID
GECC
CID
GECC
CID
CITI GLOBAL
CID
CITI GLOBAL
CID
CITI GLOBAL
CID
CITI GLOBAL
03/06/04
REDEMPTIONS
CID
CITI GLOBAL
03/06/04
NO PURCHASES
03/08/04
REDEMPTIONS
CD
CIBC
CID
COUNTRY
CID
COUNTRY
CID
CITICORP
CID
CITICORP
CID
GECC
CID
GECC
03/08/04
NO PURCHASES
03/03/04 1.020 250,000 21 14,875.00 1.038
03/04/04
1.010
50,000
6
8,416.67
1.027
03/04/04
1.010
50,000
6
8,416.67
1.027
03/04/04
1.010
50,000
6
8,416.67
1.027
03/04/04
1.010
50,000
6
8,416.67
1.027
03/04/04
1.000
50,000
7
9,722.22
1.017
03/04/04
1.000
50,000
7
9,722.22
1.017
1.045%
06/16/04
1.040
50,000
1.045%
06/16/04
1.040
50,000
1.045%
06/16/04
1.040
50,000
1.045%
06/16/04
1.040
50,000
04/01/04
1.050
25,000
05/03/04
1.030
7,197
05/03/04
1.030
50,000
05/03/04
1.070
50,000
06/16/04
1.040
20,000
06/16/04
1.040
50,000
06/16/04
1.040
50,000
06/16/04
1.040
50,000
06/16/04
1.040
50,000
06/16/04
1.040
50,000
03/05/04 1.020 50,000 23 32,583.33 1.038
1.010% 03/08/04
1.010
50,000
11
15,430.56
1.027
03/08/04
1.040
35,000
14
14,155.56
1.058
03/08/04
1.040
50,000
14
20,222.22
1.058
03/08/04
1.065
50,000
76
112,416.67
1.085
03/08/04
1.065
50,000
76
112,416.67
1.085
03/08/04
1.110
50,000
122
188,083.33
1.133
03/08/04
1.110
50,000
122
188,083.33
1.133
n
03/09/04 REDEMPTIONS
CD
FORTIS
1.070%
03/09/04
1.070
50,000
154
228,861.11
1.088
CD
FORTIS
1.070%
03/09/04
1.070
50,000
154
228,861.11
1.088
CD
WASHINGTON
1.120%
03/09/04
1.120
50,000
155
241,111.11
1.139
CD
WASHINGTON
1.120%
03/09/04
1.120
50,000
155
241,111.11
1.139
CP
CITI GLOBAL
03/09/04
1.020
50,000
29
41,083.33
1.038
CP
CITI GLOBAL
03/09/04
1.020
50,000
29
41,083.33
1.038
CP
CITI GLOBAL
03/09/04
1.020
50,000
29
41,083.33
1.038
CP
CITI GLOBAL
03/09/04
1.020
50,000
29
41,083.33
1.038
CP
GECC
03/09/04
1.070
50,000
78
115,916.67
1.090
CP
GECC
03/09/04
1.070
50,000
78
115,916.67
1.090
CP
FCAR
03/09/04
1.080
50,000
81
121,500.00
1.101
CID
FCAR
03/09/04
1.080
50,000
81
121,500.00
1.101
CID
FCAR
03/09/04
1.080
50,000
81
121,500.00
1.101
CP
SRAC
03/09/04
1.150
50,000
84
134,166.67
1.172
CP
GECC
03/09/04
1.100
50,000
117
178,750.00
1.122
CP
GECC
03/09/04
1.100
50,000
117
178,750.00
1.122
CP
GECC
03/09/04
1.100
10,000
125
38,194.44
1.123
CP
GECC
03/09/04
1.100
50,000
125
190,972.22
1.123.
CP
GECC
03/09/04
1.100
50,000
125
190,972.22
1.123
CP
JP MORGAN
03/09/04
1.080
50,000
132
198,000.00
1.102
CP
JP MORGAN
03/09/04
1.080
50,000
132
198,000.00
1.102
CP
GMAC
03/09/04
1.340
50,000
155
288,472.22
1.370
03/09/04 PURCHASES
CID
GMAC
04/28/04
1.250
50,000
CP
GMAC
04/28/04
1.250
50,000
CP
SRAC
06/16/04
1.060
50,000
CD
S-E BANK 1.040%
06/16/04
1.040
50,000
CD
S-E BANK 1.040%
06/16/04
1.040
50,000
CD
CS/FST BOSTON 1.040%
06/16/04
1.040
50,000
03/10/04 REDEMPTIONS
CD
W/F
1.020%
03/10/04
1.020
50,000
30
42,500.00
1.037
CD
W/F
1.020%
03/10/04
1.020
50,000
30
42,500.00
1.037
CD
MONTREAL
1.010%
03/10/04
1.010
50,000
30
42,083.33
1.027
CD
MONTREAL
1.010%
03/10/04
1.010
50,000
30
42,083.33
1.027
CP
AMER EXP
03/10/04
1.010
50,000
30
42,083.33
1.028
CP
AMER EXP
03/10/04
1.010
25,000
30
21,041.67
1.028
CP
GECC
03/10/04
1.070
50,000
79
117,402.78
1.090
CP
GECC
03/10/04
1.070
50,000
79
117,402.78
1.090
CP
GECC
03/10/04
1.100
50,000
118
180,277.78
1.122
CP
GECC
03/10/04
1.100
50,000
118
180,277.78
1.122
CP
JP MORGAN
03/10/04
1.080
50,000
133
190,500.00
1.102
CP
JP MORGAN
03/10/04
1.080
50,000
133
199,500.00
1.102
03/10/04 PURCHASES
CD CS/FST BOSTON 1.040% 06/16/04 1.040 25,000
7
03/10/04 PURCHASES (continued)
CD
CS/FST BOSTON
1.040%
06/16/04
1.040
CD
CS/FST BOSTON
1.040%
06/16/04
1.040
CD
US BANK
1.020%
06/16/04
1.020
CD
US BANK
1.020%
06/16/04
1.020
CD
US BANK
1.020%
06/16/04
1.020
CD
US BANK
1.020%
06/16/04
1.020
CD
DEXIA
1.025%
06/16/04
1.020
CD
DEXIA
1.025%
06/16/04
1.020
CD
WASHINGTON
1.070%
06/16/04
1.070
CD
WASHINGTON
1.070%
06/16/04
1.070
CID
AMER EXP
04/09/04
1.010
CID
AMER EXP
04/09/04
1.010
CID
BARTON
04/12/04
1.020
CID
GMAC
04/28/04
1.250
CID
GMAC
04/28/04
1.250
CP
GMAC
05/05/04
1.250
CID
GMAC
05/05/04
1.250
03/11/04 REDEMPTIONS
CD
MONTREAL
1.010%
03/11/04
1.010
CD
MONTREAL
1.010%
03/11/04
1.010
CID
COUNTRY
03/11/04
1.050
03/11/04 PURCHASES
CID
GECC
04/09/04
1.020
CID
GECC
04/09/04
1.020
CID
FCAR
05/10/04
1.020
CID
SAFEWAY
06/09/04
1.070
03/12/04 REDEMPTIONS
CID COUNTRY 03/12/04 1.050
03/12/04 NO PURCHASES
03/16/04 REDEMPTIONS
CITICORP
03/16/04 PURCHASES
CD
DEXIA
CD
DEXIA
CID
BEAR
CID
BEAR
CID
BEAR
CID
BEAR
CID
SARA LEE
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
25,000
50,000
50,000
50,000
50,000
50,000 14 19, 638.89 1.027
50,000 14 19, 638.89 1.027
50,000 16 23,333.33 1.068
50,000
50,000
50,000
50,000
25,000 30 21,875.00 1.068
7.125% 03/15/04 5.300 6,750 1068 1,077,380.93
1.025% 06/16/04
1.025
50,000
1.025% 06/16/04
1.025
50,000
03/26/04
1.000
50,000
03/26/04
1.000
50,000
03/26/04
1.000
50,000
03/26/04
1.000
50,000
03/26/04
1.050
50,000
8
5.215
03/16/04
PURCHASES (continued)
CP CITI GLOBAL
03/20104
1,010
60,000
CP CITI GLOBAL
03/26/04
1.010
50,000
CP CITI GLOBAL
03/26/04
1.010
50,000
CID GMAC
04/28/04
1.240
50,000
CP GMAC
04/28/04
1.240
50,000
03/16/04
REDEMPTIONS
CP JP MORGAN
03/16/04
1.090
5,000
124 18,772.22
1.112
CP JP MORGAN
03/16/04
1.090
50,000
124 187,722.22
1.112
CP JP MORGAN
03/16/04
1.090
50,000
124 187,722.22
1.112
CP JP MORGAN
03/16/04
1.090
50,000
124 187,722.22
1.112
03/16/04
PURCHASES
CD US BANK
1.010%
03/26/04
1.010
50,000
CD US BANK
1.010%
03/26/04
1.010
50,000
CD CS/FST BOSTON
1.035%
06/16/04
1.030
50,000
CD CS/FST BOSTON
1.035%
06/16/04
1.030
50,000
CP COUNTRY
03/26/04
1.050
2,460
CP COUNTRY
03/26/04
1.050
50,000
CP GMAC
04/28/04
1.240
50,000
CP GMAC
04/28/04
1.240
50,000
03/17/04
REDEMPTIONS
DISC NOTES FNMA
03/17/04
1.085
50,000
142 213,986.11
1.108
DISC NOTES FNMA
03/17/04
1.085
4,072
142 17,427.03
1.108
03/17/04
NO PURCHASES
03/18/04
NO REDEMPTIONS
03/18/04
PURCHASES
CP FCAR
06/16/04
1.030
50,000
03/19/04
NO REDEMPTIONS
03/19/04
NO PURCHASES
03/20/04
REDEMPTIONS
MTN FMCC
6.125%
03/20/04
5.831
17,000
1031 2,812,003.96
5.829
03/22/04 REDEMPTIONS
CP CITI GLOBAL 03/22/04 1.010 50,000 25 35,069.44 1.028
CP CITI GLOBAL 03/22/04 1.010 50,000 25 35,069.44 1.028
CP CITI GLOBAL 03/22/04 1.010 50,000 25 35,069.44 1.028
9
03/22/04 REDEMPTIONS (continued)
CP
CITI GLOBAL
CP
COUNTRY
CP
PREFCO
CP
PREFCO
03/22/04
PURCHASES
CP
COUNTRY
CP
MORG STAN
03/23/04
REDEMPTIONS
CP
SARA LEE
03/23/04
PURCHASES
CD
WASHINGTON
CD
WASHINGTON
CP
CITI GLOBAL
CP
CITI GLOBAL
03/24/04
REDEMPTIONS
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
DISC NOTES
FNMA
03/24/04
PURCHASES c/
FHLB
DISC NOTES
FHLB
DISC NOTES
FHLB
DISC NOTES
FHLB
DISC NOTES
FNMA
03/24/04
PURCHASES
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
B/A
CP
B/A
DISC NOTES
FNMA
DISC NOTES
FNMA
03/22/04
1.010
50,000
25
35,069.44
1.028
03/22/04
1.040
20,760
28
16,792.53
1.058
03/22/04
1.030
31,000
28
24,834.44
1.048
03/22/04
1.030
50,000
28
40,055.56
1.048
03/30/04 1.050 27,810
03/30/04 1.010 25,000
03/23/04 1.060 30,000 29 25,616.67
1.060% 06/30/04
1.070
50,000
1.060% 06/30/04
1.070
50,000
06/16/04
1.030
50,000
06/16/04
1.030
50,000
1.079
03/24/04
1.085
15,000
149
67,360.42
1.108
03/24/04
1.085
50,000
149
224,534.72
1.108
03/24/04
1.085
50,000
149
224,534.72
1.108
03/24/04
1.085
50,000
149
224,534.72
1.108
2.875% 02/15/07
1.000
48,840
04/21/04
1.000
50,000
05/26/04
1.000
4,575
05/26/04
1.000
50,000
07/14/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
03/30/04
1.000
50,000
06/16/04
1.030
50,000
06/16/04
1.030
50,000
06/16/04
0.995
50,000
06/16/04
0.995
50,000
10
03/24/04 PURCHASES (continued)
DISC NOTES FNMA
DISC NOTES FNMA
03/25/04 REDEMPTIONS c/
06/16/04 0.995 50,000
06/16/04 0.995 50,000
DISC NOTES
FHLB
05/26/04
1.000
4,575
1
124.19
1.014
DISC NOTES
FHLB
04/21/04
1.000
50,000
1
1,359.11
1.014
DISC NOTES
FHLB
05/26/04
1.000
50,000
1
1,357.42
1.014
DISC NOTES
FNMA
07/14/04
1.000
50,000
1
1,355.72
1.014
FHLB
2.875% 02/15/07
1.000
48,840
1
1,359.11
1.014
03/26/04 REDEMPTIONS
TREAS BILLS 03/25/04 0.990 50,000 177 243,375.00
TREAS BILLS 03/25/04 0.990 50,000 177 243,375.00
03/25/04 PURCHASES
BN
WORLD
0.990%
05/28/04
1.010
50,000
BN
WORLD
0.990%
05/28/04
1.010
50,000
BN
WORLD
0.990%
05/28/04
1.010
50,000
BN
WORLD
0.990%
05/28/04
1.010
50,000
CD
UBS
1.020%
06/16/04
1.020
50,000
CD
UBS
1.020%
06/16/04
1.020
50,000
CD
DEXIA
1.030%
06/16/04
1.025
50,000
CD
DEXIA
1.030%
06/16/04
1.025
50,000
CD
CS/FST BOSTON
1.035%
06/16/04
1.035
50,000
CD
CS/FST BOSTON
1.035%
06/16/04
1.035
50,000
CD
FORTIS
1.030%
06/16/04
1.030
50,000
CD
FORTIS
1.030%
06/16/04
1.030
50,000
CD
US BANK
1.030%
06/25/04
1.030
10,000
CD
W/F
1.010%
06/25/04
1.010
50,000
CD
W/F
1.010%
06/25/04
1.010
50,000
CD
W/F
1.010%
06/25/04
1.010
50,000
CD
W/F
1.010%
06/25/04
1.010
50,000
CD
US BANK
1.030%
06/25/04
1.030
50,000
CD
US BANK
1.030%
06/25/04
1.030
50,000
CID
GECC
05/28/04
1.020
50,000
CID
GECC
05/28/04
1.020
50,000
CID
GECC
05/28/04
1.020
50,000
CID
GECC
05/28/04
1.020
50,000
CID
GECC
06/16/04
1.030
50,000
CP
GECC
06/16/04
1.030
50,000
CID
GECC
06/16/04
1.030
50,000
CID
GECC
06/16/04
1.030
50,000
CID
FCAR
06/16/04
1.030
50,000
CID
FCAR
06/16/04
1.030
50,000
CID
FCAR
06/16/04
1.030
50,000
CID
B/A
06/16/04
1.030
50,000
CID
B/A
06/16/04
1.030
50,000
11
1.011
1.011
03/25/04 PURCHASES (continued)
CP
B/A
06/16/04
1.030
50,000
CP
B/A
06/16/04
1.030
50,000
DISC NOTES
FNMA
06/16/04
1.000
40,300
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/16/04
1.000
50,000
DISC NOTES
FNMA
06/23/04
1.000
50,000
DISC NOTES
FNMA
06/23/04
1.000
50,000
DISC NOTES
FNMA
06/23/04
1.000
50,000
DISC NOTES
FNMA
06/23/04
1.000
50,000
03/26/04 REDEMPTIONS
BN
BANC ONE
1.090%
03/26/04
1.090
50,000
151
228,597.22
1.108
BN
BANC ONE
1.090%
03/26/04
1.090
50,000
151
228,597.22
1.108
BN
BANC ONE
1.090%
03/26/04
1.090
50,000
151
228,597.22
1.108
BN
BANC ONE
1.090%
03/26/04
1.090
50,000
151
228,597.22
1.108
CD
US BANK
1.010%
03/26/04
1.010
50,000
10
14,027.78
1.024
CD
US BANK
1.010%
03/26/04
1.010
50,000
10
14,027.78
1.024
CD
DEXIA
1.015%
03/26/04
1.015
50,000
44
61,417.42
1.022
CD
DEXIA
1.015%
03/26/04
1.015
50,000
44
61,417.42
1.022
CD
NOVA SCOT
1.100%
03/26/04
1.100
50,000
151
230,694.44
1.118
CD
NOVA SCOT
1.100%
03/26/04
1.100
50,000
151
230,694.44
1.118
CD
RB SCOT
1.100%
03/26/04
1.100
25,000
154
117,638.89
1.118
CD
RB SCOT
1.100%
03/26/04
1.100
50,000
154
235,277.78
1.118
CD
NOVA SCOT
1.080%
03/26/04
1.080
50,000
163
244,500.00
1.098
CP
COUNTRY
03/26/04
1.050
2,460
10
717.50
1.065
CP
COUNTRY
03/26/04
1.050
50,000
10
14,583.33
1.065
CP
SARA LEE
03/26/04
1.050
50,000
11
16,041.67
1.064
CP
BEAR
03/26/04
1.000
50,000
11
15,277.78
1.014
CP
BEAR
03/26/04
1.000
50,000
11
15,277.78
1.014
CP
BEAR
03/26/04
1.000
50,000
11
15,277.78
1.014
CP
BEAR
03/26/04
1.000
50,000
11
15,277.78
1.014
CP
CITI GLOBAL
03/26/04
1.010
50,000
11
15,430.56
1.024
CP
CITI GLOBAL
03/26/04
1.010
50,000
11
15,430.56
1.024
CP
CITI GLOBAL
03/26/04
1.010
50,000
11
15,430.56
1.024
CP
AMER EXP
03/26/04
1.010
50,000
25
35,069.44
1.025
CP
AMER EXP
03/26/04
1.010
50,000
25
35,069.44
1.025
CP
GMAC
03/26/04
1.220
50,000
28
47,444.44
1.242
CP
GMAC
03/26/04
1.220
50,000
28
47,444.44
1.242
CP
GMAC
03/26/04
1.220
50,000
28
47,444.44
1.242
CP
GMAC
03/26/04
1.220
50,000
28
47,444.44
1.242
CP
GE CO
03/26/04
1.030
15,000
32
13,733.33
1.048
CP
GE CO
03/26/04
1.030
50,000
32
45,777.78
1.048
CP
GE CO
03/26/04
1.030
50,000
32
45,777.78
1.048
CP
GE CO
03/26/04
1.030
50,000
32
45,777.78
1.048
CP
GMAC
03/26/04
1.240
50,000
36
62,000.00
1.261
12
03/26/04 REDEMPTIONS (continued)
CID
GE CO
03/26/04
1.030
50,000
42
60,083.33
1.048
CID
GE CO
03/26/04
1.030
50,000
42
60,083.33
1.048
CID
GE CO
03/26/04
1.030
50,000
42
60,083.33
1.048
CID
GE CO
03/26/04
1.030
50,000
42
60,083.33
1.048
CID
GMAC
03/26/04
1.300
50,000
74
133,611.11
1.325
CID
FCAR
03/26/04
1.090
50,000
107
161,986.11
1.111
CID
FCAR
03/26/04
1.090
50,000
107
161,986.11
1.111
CID
FCAR
03/26/04
1.090
50,000
107
161,986.11
1.111
CID
FCAR
03/26/04
1.090
50,000
107
161,986.11
1.111
CID
JP MORGAN
03/26/04
1.080
50,000
126
189,000.00
1.102
CID
JP MORGAN
03/26/04
1.080
50,000
126
189,000.00
1.102
CP
JP MORGAN
03/26/04
1.080
50,000
126
189,000.00
1.102
DISC NOTES
FHLMC
03/26/04
1.060
50,000
123
181,083.34
1.082
DISC NOTES
FHLMC
03/26/04
1.060
50,000
123
181,083.34
1.082
DISC NOTES
FNMA
03/26/04
1.080
50,000
134
201,000.00
1.102
DISC NOTES
FNMA
03/26/04
1.080
50,000
134
201,000.00
1.102
DISC NOTES
FNMA
03/26/04
1.080
50,000
134
201,000.00
1.102
DISC NOTES
FNMA
03/26/04
1.080
50,000
134
201,000.00
1.102
DISC NOTES
FNMA
03/26/04
1.070
50,000
161
239,263.89
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
161
239,263.89
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
DISC NOTES
FNMA
03/26/04
1.070
50,000
162
240,750.00
1.093
03/26/04 PURCHASES
CID
GMAC
06/16/04
1.230
50,000
CID
GMAC
06/16/04
1.230
50,000
CID
GMAC
06/16/04
1.230
50,000
CID -
GMAC
06/16/04
1.230
50,000
03/29/04 NO REDEMPTIONS
03/29/04 PURCHASES c/
DISC NOTES FNMA
DISC NOTES FHLB
DISC NOTES FHLB
03/29/04 PURCHASES
07/14/04 1.050 50,000
04/23/04 1.050 50,000
04/23/04 1.050 2,316
SBA FR
1.300% 02/25/29
1.300
28,500
CD
UBS
1.045% 08/27/04
1.040
50,000
CD
UBS
1.045% 08/27/04
1.040
50,000
CID
NCAT
03/30/04
1.020
15,000
CID
DISNEY
03/30/04
1.050
30,000
13
03/29/04 PURCHASES (continued)
CID
HOUSEHOLD
03/30/04
1.000
10,000
CID
COUNTRY
03/30/04
1.040
46,872
CID
COUNTRY
03/30/04
1.040
50,000
CID
COUNTRY
03/30/04
1.040
50,000
CID
HOUSEHOLD
03/30/04
1.000
50,000
CID
HOUSEHOLD
03/30/04
1.000
50,000
CID
NCAT
03/30/04
1.020
50,000
CID
GMAC
07/01/04
1.230
20,000
CID
GMAC
07/01/04
1.230
50,000
CID
FCAR
08/20/04
1.050
50,000
CID
FCAR
08/20/04
1.050
50,000
CID
FCAR
08/20/04
1.050
50,000
CID
GECC
08/27/04
1.040
50,000
CID
GECC
08/27/04
1.040
50,000
CID
GECC
08/27/04
1.040
50,000
03/30/04 REDEMPTIONS c/
DISC NOTES
FNMA
07/14/04
1.050
50,000
1
1,423.51
1.065
DISC NOTES
FHLB
04/23/04
1.050
50,000
1
1,427.07
1.065
DISC NOTES
FHLB
04/23/04
1.050
2,316
1
66.09
1.065
03/30/04 REDEMPTIONS
CD
W/F
1.020%
03/30/04
1.020
50,000
33
46,750.00
1.037
CD
W/F
1.020%
03/30/04
1.020
50,000
33
46,750.00
1.037
CD
W/F
1.020%
03/30/04
1.020
50,000
33
46,750.00
1.037
CD
W/F
1.020%
03/30/04
1.020
50,000
33
46,750.00
1.037
CID
HOUSEHOLD
03/30/04
1.000
10,000
1
277.78
1.014
CID
NCAT
03/30/04
1.020
15,000
1
425.00
1.034
CID
DISNEY
03/30/04
1.050
30,000
1
875.00
1.065
CID
COUNTRY
03/30/04
1.040
46,872
1
1,354.08
1.054
CID
NCAT
03/30/04
1.020
50,000
1
1,416.67
1.034
CID
COUNTRY
03/30/04
1.040
50,000
1
1,444.44
1.054
CID
COUNTRY
03/30/04
1.040
50,000
1
1,444.44
1.054
CID
HOUSEHOLD
03/30/04
1.000
50,000
1
1,388.89
1.014
CID
HOUSEHOLD
03/30/04
1.000
50,000
1
1,388.89
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
CITI GLOBAL
03/30/04
1.000
50,000
6
8,333.33
1.014
CID
MORG STAN
03/30/04
1.010
25,000
8
5,611.11
1.024
CID
COUNTRY
03/30/04
1.050
27,810
8
6,489.00
1.065
CID
COUNTRY
03/30/04
1.050
50,000
33
48,125.00
1.069
CID
W/F
03/30/04
1.020
50,000
75
106,250.00
1.036
CID
W/F
03/30/04
1.020
50,000
75
106,250.00
1.036
14
03/30/04 REDEMPTIONS (continued)
CID
GECC
CID
GECC
03/30/04 PURCHASES
CD
SVENSKA
DISC NOTES
FNMA
DISC NOTES
FNMA
03/31/04 REDEMPTIONS
TREAS
NOTES
TREAS
NOTES
TREAS
NOTES
TREAS
NOTES
TREAS
NOTES
TREAS
NOTES
03/30/04 1.100 50,000 154 235,277.78
03/30/04 1.100 50,000 154 235,277.78
1.050% 08/27/04 1.050
08/27/04 1.020
08/27/04 1.020
3.625%
03/31 /04
3.517
3.625%
03/31 /04
3.517
3.625%
03/31 /04
3.501
3.625%
03/31 /04
3.501
3.625%
03/31 /04
3.501
3.625%
03/31 /04
3.501
15
50,000
50,000
50,000
50,000
722
3,478, 867.83
50,000
722
3,478,867.83
50,000
726
3,483,051.57
50,000
726
3,483,051.57
50,000
726
3,483,051.57
50,000
726
3,483,051.57
1.124
1.124
3.517
3.517
3.501
3.501
3.501
3.501
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.
g/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
it 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)
11/19/03
1.070
6,000,000.00
05/19/04
Bank of East Asia (USA)
01/14/04
1.020
3,095,000.00
07/14/04
Bank of East Asia (USA)
02/11/04
1.060
3,000,000.00
08/11/04
Omni Bank
10/23/03
1.080
2,000,000.00
04/22/04
Omni Bank
02/13/04
0.980
2,000,000.00
05/14/04
Omni Bank
11/20/03
1.090
2,000,000.00
05/20/04
Omni Bank
02/19/04
0.970
2,000,000.00
05/27/04
Omni Bank
03/03/04
1.000
6,000,000.00
06/02/04
Omni Bank
03/17/04
1.050
2,000,000.00
09/15/04
ARROYO GRANDE
Mid -State Bank
10/15/03
1.050
5,000,000.00
04/14/04
Mid -State Bank
11/19/03
1.070
5,000,000.00
05/19/04
Mid -State Bank
12/12/03
1.060
5,0001000.00
06/11/04
Mid -State Bank
01/15/04
1.010
5,000,000.00
07/15/04
Mid -State Bank
02/11/04
1.050
5,000,000.00
08/11/04
Mid -State Bank
03/12/04
1.040
5,000,000.00
09/09/04
BREA
Jackson Federal Bank
02/18/04
0.970
10,000,000.00
05/19/04
Pacific Western National Bank
02/04/04
1.030
4,000,000.00
08/04/04
CALABASAS
First Bank of Beverly Hills FSB
02/05/04
0.980
10,000,000.00
05/06/04
First Bank of Beverly Hills FSB
12/17/03
1.040
10,000,000.00
06/16/04
First Bank of Beverly Hills FSB
03/04/04
1.070
10,000,000.00
09/02/04
CAMARI LLO
First California Bank
12/05/03
1.090
2,000,000.00
06/04/04
First California Bank
01/28/04
1.030
2,000,000.00
07/28/04
First California Bank
01/28/04
1.030
4,000,000.00
07/28/04
First California Bank
03/24/04
1.060
6,000,000.00
09/22/04
CAMERON PARK
Western Sierra National Bank
01/14/04
0.990
7,000,000.00
07/14/04
Western Sierra National Bank
02/11/04
1.030
6,000,000.00
08/11/04
17
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
Tri Counties Bank 03/18/04 1.010 20,000,000.00 06/18/04
CITY OF INDUSTRY
EverTrust Bank
12/11/03
1.070
6,000,000.00
06/10/04
EverTrust Bank
01/29/04
1.030
6,000,000.00
07/29/04
CONCORD
Bank of the West
03/18/04
1.010
82,000,000.00
06/18/04
Bank of the West
01/07/04
0.970
134,000,000.00
04/08/04
Bank of the West
01/28/04
0.950
76,500,000.00
04/29/04
Bank of the West
01/29/04
0.950
100,000,000.00
04/29/04
Bank of the West
02/20/04
0.980
242,000,000.00
05/21/04
DUBLIN
Operating Engineers FCU
10/08/03
1.050
5,000,000.00
04/07/04
Operating Engineers FCU
12/12/03
1.040
10,000,000.00
06/11/04
Operating Engineers FCU
02/11/04
1.030
5,000,000.00
08/11/04
EL CENTRO
Valley Independent Bank
01/07/04
'1.000
20,000,000.00
04/08/04
Valley Independent Bank
01/16/04
0.960
20,000,000.00
04/16/04
Valley Independent Bank
01/23/04
0.960
32,500,000.00
04/23/04
EL SEGUNDO
First Coastal Bank NA
01/22/04
1.020
2,000,000.00
07/21/04
First Coastal Bank NA
03/03/04
1.060
2,000,000.00
09/01/04
Hawthorne Savings FSB
01/07/04
0.970
60,000,000.00
04/08/04
Hawthorne Savings FSB
10/16/03
1.070
35,000,000.00
04/14/04
Hawthorne Savings FSB
11/20/03
1.090
25,000,000.00
05/20/04
Hawthorne Savings FSB
01/07/04
1.080
50,000,000.00
07/07/04
Hawthorne Savings FSB
02/05/04
1.060
15,000,000.00
08/05/04
Xerox Federal Credit Union
11/20/03
1.100
20,000,000.00
05/20/04
Xerox Federal Credit Union
03/04/04
1.080
20,000,000.00
09/02/04
Xerox Federal Credit Union
03/10/04
1.040
7,000,000.00
09/09/04
18
NAME
FAIRFIELD
Westamerica Bank
Westamerica Bank
Westamerica Bank
FRESNO
United Security Bank
FULLERTON
Fullerton Community Bank
Fullerton Community Bank
GOLETA
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
Pacific Capital Bank
GRANADA HILLS
First State Bank of California
First State Bank of California
IRVINE
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
LA JOLLA
Silvergate Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
01 /09/04 0.960 60, 000, 000.00 04/09/04
01/14/04 0.910 30,000,000.00 04/15/04
01 /22/04 0.920 50, 000, 000.00 04/23/04
01 /21 /04 0.950 40,000,000.00 04/21 /04
11/19/03 1.080 9,000,000.00 05/19/04
01 /23/04 1.020 8, 000, 000.00 07/23/04
01/09/04
0.960
23,000,000-00
04/01/04
09/17/03
1.050
25,000,000.00
04/01/04
10/01 /03
1.050
30, 000, 000.00
04/01/04
12/10/03
1.030
85,000,000.00
06/09/04
02/13/04
1.050
61,000,000.00
08/13/04
10/23/03 1.060 3,000,000.00 04/22/04
03/19/04 1.030 2,000,000.00 09/17/04
10/17/03
1.040
10,000,000.00
04/15/04
10/31 /03
1.060
20, 000, 000.00
04/29/04
11/20/03
1.070
20,000,000.00
05/20/04
12/17/03
1.020
10,000,000.00
06/16/04
01 /08/04
1.060
10, 000, 000.00
07/08/04
07/29/04
1.010
10,000,000.00
07/29/04
02/19/04
1.010
15,000,000.00
08/19/04
02/26/04
1.060
14,000,000.00
08/26/04
03/12/04 1.060 5,000,000.00 09/10/04
19
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
LAKEPORT
Lake Community Bank
01/14/04
0.990
2,000,000.00
07/14/04
LODI
Bank of Lodi
06/17/04
1.020
5,000,000.00
06/17/04
Bank of Lodi
03/24/04
1.080
5,000,000.00
09/22/04
Farmers & Merchant Bk Cen CA
10/10/03
1.050
10,000,000.00
04/08/04
LOS ANGELES
Broadway Federal Bank
01/09/04
1.070
2,500,000.00
07/09/04
Broadway Federal Bank
03/12/04
1.050
3,000,000.00
09/10/04
Cathay Bank
01/07/04
0.970
38,000,000.00
04/08/04
Cathay Bank
02/18/04
1.030
15,000,000.00
08/18/04
Cathay Bank
03/03/04
1.050
17,000,000.00
09/01/04
Cathay Bank
03/10/04
1.030
30,000,000.00
09/09/04
Cedars Bank
10/22/03
1.080
4,000,000.00
04/21/04
Cedars Bank
01/07/04
1.080
5,000,000.00
07/07/04
Cedars Bank
02/20/04
1.040
2,000,000.00
08/20/04
Cedars Bank
03/12/04
1.050
4,500,000.00
09/10/04
Center Bank
01/07/04
0.970
10,000,000.00
04/08/04
Center Bank
12/23/03
1.000
5,000,000.00
06/23/04
Center Bank
01/22/04
1.010
5,000,000.00
07/21/04
Center Bank
03/17/04
1.050
40,000,000.00
09/15/04
CHB America Bank
10/15/03
1.030
3,300,000.00
04/14/04
CHB America Bank
11/21/03
1.060
4,000,000.00
05/21/04
CHB America Bank
03/03/04
0.980
2,000,000.00
06/02/04
CHB America Bank
01/15/04
0.990
1,000,000.00
07/15/04
CHB America Bank
03/05/04
1.030
2,000,000.00
09/01/04
CHB America Bank
03/31/04
1.050
3,000,000.00
09/29/04
Eastern International Bank
11/05/03
1.080
900,000.00
05/05/04
Eastern International Bank
12/11/03
1.050
1,000,000.00
06/10/04
Hanmi Bank
01/16/04
0.940
25,000,000.00
04/16/04
Hanmi Bank
02/04/04
0.990
25,000,000.00
05/05/04
Hanmi Bank
03/05/04
1.020
25,000,000.00
06/03/04
Hanmi Bank
03/17/04
1.010
25,000,000.00
06/17/04
Mellon First Business Bank
01/09/04
0.960
50,000,000.00
04/09/04
Mellon First Business Bank
03/18/04
1.010
50,000,000.00
06/18/04
Mirae Bank
04/16/04
0.940
4,000,000.00
04/16/04
Nara Bank, NA
01/07/04
0.970
5,000,000.00
04/08/04
Nara Bank, NA
10/23/03
1.080
10,000,000.00
04/22/04
Nara Bank, NA
01/23/04
0.930
10,000,000.00
04/23/04
20
NAME
LOS ANGELES (continued
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
Nara Bank, NA
11/14/03
1.110
5,000,000.00
05/13/04
Nara Bank, NA
02/19/04
0.970
5,000,000.00
.05/19/04
Nara Bank, NA
03/12/04
1.010
10,000,000.00
06/11/04
Nara Bank, NA
02/04/04
1.050
10,000,000.00
08/04/04
Pacific Union Bank
10/31/03
1.080
10,000,000.00'
04/29/04
Pacific Union Bank
12/15/03
1.040
20,000,000.00
06/16/04
Pacific Union Bank
01/08/04
1.080
10,000,000.00
07/08/04
Pacific Union Bank
03/04/04
1.070
20,000,000.00
09/02/04
Preferred Bank
02/06/04
0.990
4,000,000.00
05/07/04
Preferred Bank
03/19/04
1.060
31,000,000.00
09/17/04
Sae Han Bank
02/13/04
0.980
2,000,000.00
05/14/04
Sae Han Bank
02/20/04
0.980
12,000,000.00
05/14/04
State Bank of India (California)
11/20/03
1.000
2,000,000.00
05/20/04
State Bank of India (California)
01/07/04
1.090
3,000,000.00
07/07/04
Western Federal Credit Union
10/23/03
1.080
30,000,000.00
04/22/04
Wilshire State Bank
01/08/04
0.970
7,000,000.00
04/09/04
Wilshire State Bank
11/14/03
1.110
2,000,000.00
05/13/04
Wilshire State Bank
11/14/03
1.110
6,000,000.00
05/13/04
Wilshire State Bank
12/15/03
1.040
1,000,000.00
06/17/04
Wilshire State Bank
12/17/03
1.040
2,000,000.00
06/17/04
Wilshire State Bank
12/15/03
1.040
4,000,000.00
06/17/04
Wilshire State Bank
12/17/03
1.040
5,000,000.00
06/17/04
Wilshire State Bank
02/05/04
1.060
8,000,000.00
07/30/04
Wilshire State Bank
02/25/04
1.060
7,000,000.00
08/25/04
Wilshire State Bank
03/05/04
1.070
3,000,000.00
09/03/04
Wilshire State Bank
03/19/04
1.050
8,000,000.00
09/17/04
MERCED
County Bank
01/15/04
0.940
10,000,000.00
04/16/04
County Bank
12/03/03
1.100
5,000,000.00
06/02/04
County Bank
03/10/04
1.040
10,000,000.00
09/09/04
MONTEREY PARK
Trust Bank FSB
10/01/03
1.080
3,000,000.00
04/01/04
Trust Bank FSB
12/19/03
1.050
2,000,000.00
07/01/04
Trust Bank FSB
01/07/04
1.080
3,000,000.00
07/07/04
NORTH HIGHLANDS
Safe Credit Union
01/16/04
0.930
5,000,000.00
04/16/04
21
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
NORTH HIGHLANDS (continued)
Safe Credit Union 02/13/04 0.980 20,000,000.00 05/14/04
OAKDALE
Oak Valley Community Bank 01/16/04 0.930 2,500,000.00 04/16/04
Oak Valley Community Bank 03/18/04 1.060 3,500,000.00 09/16/04
OAKLAND
Metropolitian Bank
10/29/03
1.080
1,000,000.00
04/28/04
Metropolitian Bank
12/04/03
1.100
1,000,000.00
06/03/04
Metropolitian Bank
01/23/04
1.010
1,000,000.00
07/23/04
Metropolitian Bank
02/26/04
1.060
1,000,000.00
08/26/04
Metropolitian Bank
03/24/04
1.050
2,000,000.00
09/22/04
ONTARIO
Citizens Business Bank
10/03/03
1.050
25,000,000.00
04/02/04
Citizens Business Bank
11/20/03
1.090
30,000,000.00
05/20/04
Citizens Business Bank
12/05/03
1.080
25,000,000.00
06/04/04
Citizens Business Bank
02/06/04
1.060
30,000,000.00
08/06/04
Citizens Business Bank
03/24/04
1.050
30,000,000.00
09/22/04
PALO ALTO
Bank of Petaluma
02/19/04
1.040
3,500,000.00
08/19/04
Bank of Petaluma
03/11/04
1.050
12,000,000.00
09/09/04
Bank of Santa Clara
02/19/04
1.040
20,000,000.00
08/19/04
Bay Bank of Commerce
10/29/03
1.090
5,000,000.00
04/28/04
Coast Commercial Bank
01/14/04
1.030
5,000,000.00
07/14/04
Coast Commercial Bank
02/19/04
1.050
20,000,000.00
08/19/04
Cupertino National Bank
10/29/03
1.090
35,000,000.00
04/28/04
Cupertino National Bank
11/21/03
1.090
20,000,000.00
05/21/04
Cupertino National Bank
01/14/04
1.020
10,000,000.00
07/14/04
Cupertino National Bank
03/11/04
1.050
10,000,000.00
09/09/04
Golden Gate Bank
11 /21 /03
1.110
9,000, 000.00
05/21 /04
Mid -Peninsula Bank
10/29/03
1.080
35,000,000.00
04/28/04
Mid -Peninsula Bank
02/19/04
1.030
5,000,000.00
08/19/04
Mid -Peninsula Bank
03/11/04
1.040
10,000,000.00
09/09/04
Mt. Diablo National Bank
03/11/04
1.050
10,000,000.00
09/09/04
Peninsula Bank of Commerce
02/19/04
1.030
15,000,000.00
08/19/04
San Jose National Bank
10/29/03
1.100
20,000,000.00
04/28/04
22
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
PALO ALTO (continued)
San Jose National Bank
11/21/03
1.100
20,000,000.00
05/21/04
PALOS VERDES ESTATES
Malaga Bank
11/14/03
1.090
7,000,000.00
05/13/04
Malaga Bank
12/17/03
1.020
4,000,000.00
06/16/04
Malaga Bank
12/17/03
1.020
5,000,000.00
06/16/04
Malaga Bank
02/20/04
1.020
10,000,000.00
08/20/04
Malaga Bank
03/05/04
1.050
4,000,000.00
09/03/04
PASADENA
Community Bank
10/10/03
1.050
10,000,000.00
04/08/04
Community Bank
10/15/03
1.050
15,000,000.00
04/14/04
Community Bank
11/06/03
1.090
15,000,000.00
05/06/04
Community Bank
12/17/03
1.040
10,000,000.00
06/16/04
Community Bank
01/09/04
1.070
10,000,000.00
07/09/04
Community Bank
03/17/04
1.050
10,000,000.00
09/15/04
Wescom Credit Union
11/19/03
1.090
10,000,000.00
05/19/04
Wescom Credit Union
03/24/04
1.070
25,000,000.00
09/22/04
PASO ROBLES
Hacienda Bank
03/10/04
1.010
1,000,000.00
06/09/04
PLACERVILLE
El Dorado Savings Bank
04/10/03
1.280
10,000,000.00
04/01/04
El Dorado Savings Bank
04/30/03
1.310
5,000,000.00
04/30/04
El Dorado Savings Bank
06/10/03
1.100
20,000,000.00
06/04/04
PLEASANTON
Valley Community Bank
03/19/04
1.070
6,000,000.00
09/17/04
POMONA
PFF Bank and Trust
12/10/03
1.050
20,000,000.00
06/09/04
PFF Bank and Trust
02/27/04
1.070
8,000,000.00
08/27/04
23
ITil-.
PORTERVILLE
Bank of the Sierra
RANCHO SANTA FE
La Jolla Bank, FSB
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
Five Star Bank
RICHMOND
Mechanics Bank
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
10/23/03 1.090 10,000,000.00 04/22/04
11/20/03
1.070
25,000,000.00
05/20/04
03/04/04
1.000
10,000,000.00
06/03/04
02/04/04
1.030
25,000,000.00
08/04/04
02/13/04
1.030
15,000,000.00
08/13/04
03/05/04
1.050
10,000,000.00
09/02/04
12/12/03 1.040 3,000,000.00 06/11/04
10/31 /03 1.060 20, 000, 000.00 04/29/04
01/28/04 1.000 2,000,000.00 07/28/04
03/31/04 1.030 2,000,000.00 09/29/04
04/01 /03
1.320
10, 000, 000.00
04/01 /04
04/23/03
1.390
10, 000, 000.00
04/21 /04
06/12/03
1.090
10,000,000.00
06/09/04
07/09/03
1.110
10,000,000.00
07/08/04
08/08/03
1.370
10,000,000.00
08/04/04
09/12/03
1.290
10,000,000.00
09/10/04
10/ 15/03
1.260
10, 000, 000.00
10/15/04
10/31 /03
1.300
10,000,000.00
10/29/04
11 /07/03
1.380
10, 000, 000.00
11 /05/04
03/03/04
1.260
10,000,000.00
03/03/05
03/25/04 1.050 25,000,000.00 09/23/04
24
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT DATE
SACRAMENTO
American River Bank
10/09/03
1.030
1,500,000.00
04/07/04
American River Bank
12/19/03
1.030
1,000,000.00
06/18/04
American River Bank
01/09/04
1.050
1,000,000.00
07/09/04
American River Bank
01/29/04
1.010
1,500,000.00
07/29/04
American River Bank
02/27/04
1.050
2,000,000.00
08/27/04
American River Bank
03/19/04
1.030
1,250,000.00
09/17/04
American River Bank
03/25/04
1.030
2,000,000.00
09/23/04
Bank of Sacramento
12/19/03
1.050
2,000,000.00
06/18/04
Bank of Sacramento
02/11/04
1.060
1,500,000.00
08/11/04
Bank of Sacramento
03/03/04
1.060
2,000,000.00
09/01/04
Merchants National Bank
10/15/03
1.050
2,000,000.00
04/14/04
Merchants National Bank
01/22/04
1.010
2,000,000.00
07/21/04
River City Bank
10/09/03
1.060
2,000,000.00
04/07/04
River City Bank
01/29/04
0.970
3,000,000.00
04/30/04
River City Bank
02/26/04
1.010
2,000,000.00
05/27/04
U.S. Bank
01/08/04
1.090
100,000,000.00
07/08/04
U.S. Bank
02/04/04
1.050
25,000,000.00
08/04/04
U.S. Bank
02/11/04
1.050
50,000,000.00
08/11/04
U.S. Bank
02/20/04
1.040
50,000,000.00
08/20/04
Union Bank of California
01/16/04
0.940
175,000,000.00
04/16/04
Union Bank of California
02/04/04
0.990
150,000,000.00
05/05/04
Union Bank of California
03/18/04
1.020
150,000,000.00
06/18/04
SAN DIEGO
First Future Credit Union
12/03/03
1.090
15,000,000.00
06/02/04
First Future Credit Union
12/17/03
1.040
3,000,000.00
06/16/04
First Future Credit Union
12/17/03
1.040
5,000,000.00
06/16/04
First Future Credit Union
02/27/04
1.070
5,000,000.00
08/27/04
First United Bank
10/17/03
1.070
2,000,000.00
04/15/04
First United Bank
02/13/04
1.060
1,000,000.00
08/13/04
Mission Federal Credit Union
01/15/04
1.020
10,000,000.00
07/15/04
Mission Federal Credit Union
03/03/04
1.060
10,000,000.00
09/01/04
Neighborhood National Bank
02/20/04
1.020
2,000,000.00
08/20/04
North Island Federal Credit Union
01/09/04
0.980
5,000,000.00
04/09/04
SAN FRANCISCO
American California Bank
01/08/04
1.090
4,000,000.00
07/08/04
American California Bank
03/05/04
1.080
2,000,000.00
09/03/04
Citibank (West) FSB
01/08/04
1.108
150,000,000.00
07/08/04
Citibank (West) FSB
01/15/04
1.050
100,000,000.00
07/15/04
25
TIME VEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT M DATE
SAN FRANCISCO (continued
Citibank (West) FSB
01/22/04
1.050
100,000,000.00
07/21/04
Citibank (West) FSB
01/28/04
1.050
25,000,000.00
07/28/04
Oceanic Bank
09/12/03
1.260
4,000,000.00
09/10/04
Trans Pacific National Bank
12/23/03
1.010
1,000,000.00
06/23/04
Trans Pacific National Bank
02/05/04
1.070
1,000,000.00
08/05/04
Trans Pacific National Bank
03/25/04
1.060
1,000,000.00
09/23/04
United Commercial Bank
01/07/04
0.980
40,000,000.00
04/08/04
United Commercial Bank
01/08/04
0.980
55,000,000.00
04/09/04
United Commercial Bank
02/26/04
1.010
20,000,000.00
05/27/04
United Commercial Bank
12/05/03
1.090
25,000,000.00
06/04/04
United Commercial Bank
12/12/03
1.070
25,000,000.00
06/11/04
United Commercial. Bank
01/14/04
1.020
50,000,000.00
07/14/04
United Commercial Bank
01/28/04
1.030
40,000,000.00
07/28/04
United Commercial Bank
03/03/04
1.060
50,000,000.00
09/01/04
United Commercial Bank
03/19/04
1.060
65,000,000.00
09/17/04
SAN DOSE
Comerica Bank of California
01/07/04
0.980
134,000,000.00
04/08/04
Comerica Bank of California
01/16/04
0.940
183,000,000.00
04/16/04
Heritage Bank of Commerce
02/11/04
1.060
2,000,000.00
08/11/04
Heritage Bank of Commerce
02/11/04
1.060
2,000,000.00
08/11/04
Meriwest Credit Union
10/17/03
1.090
5,000,000.00
04/14/04
Meriwest Credit Union
10/16/03
1.070
5,000,000.00
04/14/04
Meriwest Credit Union
01/22/04
1.040
5,000,000.00
07/21/04
Meriwest Credit Union
03/17/04
1.080
5,000,000.00
09/15/04
Santa Clara Co. Fed. C.U.
02/06/04
1.000
5,000,000.00
05/07/04
Santa Clara Co. Fed. C.U.
02/06/04
1.080
10,000,000.00
08/06/04
SAN LUIS OBISPO
First Bank Of San Luis Obispo
12/05/03
1.090
4,500,000.00
06/04/04
First Bank Of San Luis Obispo
02/11/04
1.060
6,000,000.00
08/11/04
First Bank Of San Luis Obispo
03/17/04
1.060
7,000,000.00
09/15/04
First Bank Of San Luis Obispo
03/26/04
1.050
5,000,000.00
09/24/04
Mission Community Bank
10/08/03
1.080
2,500,000.00
04/07/04
Mission Community Bank
12/11/03
1.080
1,000,000.00
06/10/04
Mission Community Bank
03/04/04
1.080
1,000,000.00
09/02/04
San Luis Trust Bank
03/11/04
0.980
700,000.00
04/21/04
San Luis Trust Bank
10/22/03
1.060
1,000,000.00
04/21/04
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT DATE
SAN MARINO
East West Federal Bank
11/20/03
1.090
38,000,000.00
05/20/04
East West Federal Bank
01/09/04
1.070
42,000,000.00
07/09/04
East West Federal Bank
02/06/04
1.060
35,000,000.00
08/06/04
East West Federal Bank
03/12/04
1.050
35,000,000.00
09/10/04
SANTA ROSA
National Bank of the Redwoods
10/31/03
1.080
5,000,000.00
04/29/04
National Bank of the Redwoods
01/22/04
1.010
10,000,000.00
07/21/04
National Bank of the Redwoods
02/11/04
1.050
5,000,000.00
08/11/04
North Coast Bank
12/16/03
1.040
1,250,000.00
06/17/04
SONORA
Central California Bank
03/26/04
1.040
5,000,000.00
09/24/04
STOCKTON
Pacific State Bank
10/09/03
1.050
1,000,000.00
04/07/04
Pacific State Bank
01/08/04
1.090
1,000,000.00
07/08/04
Union Safe Deposit Bank
01/15/04
0.940
10,000,000.00
04/16/04
Union Safe Deposit Bank
01/23/04
0.940
15,000,000.00
04/23/04
Union Safe Deposit Bank
02/05/04
0.990
15,000,000.00
05/06/04
Union Safe Deposit Bank
02/13/04
0.990
15,000,000.00
05/14/04
Union Safe Deposit Bank
03/05/04
1.020
15,000,000.00
06/03/04
Union Safe Deposit Bank
03/11/04
1.010
10,000,000.00
06/10/04
Washington Mutual Bank
12/17/03
1.040
45,000,000.00
06/16/04
Washington Mutual Bank
01/22/04
1.010
75,000,000.00
07/21/04
Washington Mutual Bank
02/20/04
1.040
60,000,000.00
08/20/04
TORRANCE
China Trust Bank (USA)
01/16/04
0.940
15,000,000.00
04/16/04
China Trust Bank (USA)
01/16/04
0.940
25,000,000.00
04/16/04
China Trust Bank (USA)
01/22/04
0.930
30,000,000.00
04/23/04
China Trust Bank (USA)
02/13/04
0.990
20,000,000.00
05/14/04
China Trust Bank (USA)
03/12/04
1.020
35,000,000.00
06/11/04
TRACY
Service 1st Bank 03/17/04 1.030 4,000,000.00 06/17/04
27
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
TUSTIN
Sunwest Bank
Sunwest Bank
Sunwest Bank
VACAVILLE
Travis Credit Union
WHITTIER
Quaker City Bank
Quaker City Bank
Quaker City Bank
TOTAL TIME DEPOSITS MARCH 2O04
01/16/04 0.910 6,000,000.00 04/16/04
02/11/04 0.960 7,800,000.00 05/12/04
03/10/04 0.970 1,000,000.00 06/09/04
12/04/03 1.090 40,000,000.00 06/02/04
12/05/03 1.080 25,000,000.00 06/04/04
01/14/04 1.010 24,000,000.00 07/14/04
03/31 /04 1.050 16, 000, 000.00 .09/29/04
6,881,295,000.00
28
BANK DEMAND DEPOSITS
March 2004
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 2,023,886
$ 1,413,382
2
2,281,749
1,730,316
3
2,415,960
1,994,780
4
1,216,201
2,663,337
.6
1,048,644
2,814,395
6
1,048,644
2,814,395
7
1,048,644
2,814,395
8
1,155,891
2,855,192
9
1,510,963
2,628,479
10
1,436,730
2,531,724
11
1,486,528
2,806,347
12
1,456,065
2,856,969
13
1,456,065
2,856,959
14
1,456,065
2,856,959
15
1,331,480
2,801,089
16
1,153,448
2,630,194
17
1,254,168
2,510,211
18
1,309,587
2,722,183
19
1,435,697
2,767,723
20
1,435,591
2,757,723
21
1,435,697
2,767,723
22
1,496,363
2,299,748
23
1,637,918
2,136,948
24
1,691,145
2,108,418
25
1,567,503
2,155,220
26
1,764,907
2,634,817
27
1,754,907
2,634,817
28
1,754,907
2,634,817
29
1,684,468
2,527,642
30
1,260,430
2,894,662
31
2,118,139
2,899,417
AVERAGE DOLLAR DAYS
$ 1,616,716
a/ The prescribed bank balance for March was $1,473,509. This consisted of
$1,337,090 in compensating balances for services, balances for uncollected
funds of $140,307 and a deduction of $3,888 for March delayed
deposit credit.
28
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
No. 1657
in accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on March 17, 2004, 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
$1,337,090,000
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:
Time Deposits in
Various Financial
Institutions
In Securities
(sections 16503a
Estimated
From
To
Transactions
(section 16430)*
and 16602)*
Total
( 1)
03/15/04
03/19/04
$
786,300,000
$
45,651,805,000
$ 5,852,295,000
$
51,504,100,000
(2)
03/22/04
03/26/04
$
(774,500,000)
$
44,877,305,000
$ 5,852,295,000
$
50,729,600,000
(3)
03/29/04
04/02/04
$
(2,554,000,000)
$
42,323,305,000
$ 5,852,295,000
$
48,175,600,000
(4)
04/05/04
04/09/04
$
605,900,000
$
42,929,205,000
$ 5,852,295,000
$
48,781,500,000
(5)
04/12/04
04/16/04
$
2,191,700,000
$
45,120,905,000
$ 5,852,295,000
$
50,973,200,000
(6)
04/19/04
04/23/04
$
2,584,100,000
$
47,705,005,000
$ 5,852,295,000
$
53,557,300,000
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 $1,337,090,000.
Dated: March 17, 2004
* Government Code
POOLED MONEY INVESTMENT BOARD:
Signatures on file at STO and SCO
Chairperson
Member
Member
BOARD MEMBER ITEMS