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2004 11 10 IABr P.O. Box 1504 78-495 CALLE TAMPICO (760) 777-7000 LA QUINTA, CALIFORNIA 92253 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Caile Tampico- La Quinta, CA 92253 November 10, 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 Approval of Minutes of Meeting on October 13, 2004 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for September 2004 VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - October 2004 B. Pooled Money Investment Board Reports - August 2004 C. LAIF Conference Materials D. Meeting Minutes from September 28, 2004 Joint Meeting VII BOARD MEMBER ITEMS Vill ADJOURNMENT INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: November 10, 2004 ITEM TITLE:' Transmittal of Treasury Report for September 30, 2004 BACKGROUND: Attached please find the Treasury Report for September 30, 2004. RECOMMENDATION: Review, Receive and File the Treasury Report for September 30, 2004. L�� ohn M. Falconer, Finance Director Iry MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurers Report for September 30, 2004 DATE: October 29, 2004 Attached is the Treasurer's Report for the month ending September 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: r Investment Beginning Purchased Notes Sold/Matured Other Ending Change Cash (3) $ 8,386,876 $ (4,502,695) (1) $3,884,181 ($4,502,695) LAIF 9,803,263 3,500,000 (4,000,000) 9,303,263 (500,000) US Treasuries (2) 132,507,373 12,000,000 (22,000,000) 15,215 122,522,588 (9,984,785) US Gov't Agencies (2) 27,379,840 - (15,927) 27,363,913 (15,927) Commercial Paper (2) - 0 0 Corporate Notes - 0 0 Mutual Funds 4,577,404 3,348 093 1 7,925,497 3,348,093 Total $ 182,654,756 $ 14,345,398 $ 26,000,000 $ 712 $ 170 999,442 $ 11,655,314 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. C � 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. I �! I 1 2 0.q Date (3) The cash account may reflect a negative balance. 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C C C 8 Me m Z L Z r 0 0 �v � -E mo'ay�m ma Zc cm my �a Zm ` c c•r,,,E a c m 0 coN a r�amam �.± W E E +y+ m >> m +�+ m 06 7 7 � m .0 C> N C E p� cmmUw �-c Cmm�U� LLc E o E0ccow mEm u6u6 w.`.� mEm LLu- A m0vsN c �zv»�g�zv�»fig �E°- D 0 a-iD� - %. '.) 6 �o LL !0 V m pp p Q� pp ��pp 1. 0 NISOWO)H a0/O�.N�a1f�lA MN �CO� Ma In V t0W) Ct f� � N N aT CD 1� CD N � C tO vg O � N Of l► Ip � Q! 55,2�� 1AtOr' �2Xvu�i.c�aoIV o)aov a�� t�u�i_rneo � us o� E pco N c mv to V o O m N O r- N > Z 4* N fA N N H �P.p ou ICl aOQ Off. N tO Im O e v f0 a N O��ppNpp �Mppppppppm t-.N.�{{ a0�01'9 ��NInOf � V 1- Cp ��1p►p m N CV) �O1r- CV) mN1- 1-O m C14 N � N H cc yyr.-co' ^ppOOOg� 7M�1f1� LoLO CD Of � N V t0 Q CNp 40 �1p eh N C0 ' ' N_ a > cn ONTO N CO)04 t0� �C6 r- m H C N m IA > LUL LL H ►• C U. 0 �omN o11.0 � o_s o> oc _ m LLB_ m LL U.`�IXtL CL � Q o m o C `L 0 o m � > V y� 04 Uo.co c 0(DCD0 �od��n11<wt10 1H c 0 -1 Uaoy t°- 0 �wD City of Ls Quulnte RecorcWabon of Actual and Surplus Funds City, Redevelopment Agency and Financing Authority September 30, 2004 Balance of Actual Funds 170,999,442 Less Petty cash Funds (1,000) Less Non.Surplus Funds (325,031) Lass transfer from LAIF-sst. Accounts P Balance of Surplus Funds $170 673,411 City Cash i Investments Bank Accounts Name - Availability Surplus Type Book Wails Fargo - Demand No Checking $3,825,031 Petty Cash - Demand No WA 1,000 Wells Fargo/Housing - Demand Yes Checking 58150 • Total - Bank Accounts $3,884,181 U. S. Treasury Amortized Custodian - Availabft Surplus lssuer/TyP6 Value Bank of New York - Demand Yes U.S. Treasury Note 4,983.792 Bank of New York - Demand Yes U.S. Treasury Note 4,964,454 . Bank of New York - Demand Yes U.S. Treasury Note 5,007,357 Bank of New York - Demand Yes U.S. Treasury Note 3,983,821 Bank of New York - Demand Yes U.S. Treasury Note 5,012,046 Bank of New York - Demand Yes U.S. Treasury Note 4,985,530 Bank of New York - Demand Yes U.S. Treasury Note 3,966,244 Bank of New York - Demand I Yes U.S. Treasury Note 1 5 002 928 Total - U.S. Treasury 37,906,172 U.S.. Government Securities Custodian - Availability Surplus issuer/Type Amortized Value Bank of New York - Demand Yes FARM CREDIT 5,043,513 Bank of New York - Demand Yes FHLB 2,009,832 Bank of New York - Demand Yes FHLB 2,016,557 Bank of New York - Demand Yes FHLS 2,371,532 Bank of New York - Demand Yes FHLB 1,011.834 Bank of New York - Demand Yes FNMA -Discount 4,983,135 Bank of New York - Demand Yes FreddieMac 7,514,004 Bank of New York - Demand I Yes I FreddisMac - Discount 2,413, 506 Total - U.S. Government Securities I 1 27,363,913 Local Agency Investment Fund Name - AvaNa surplus T Book LAIF - City - Demand Yes State Pool 5,755,666 LAIF - RDA - Demand Yes State Pool 3,547,597 Total - State Pool 9,303,263 Total City Investments Total City Cash 3 Investments Fiscal Agent Investments Surplus Surplus Yes Ad' Yes S - $3,500,000 S 3.500,000 58150 58,150 $ 58,150 $3,500,000 $ 3,558,150 Surplus Surplus Yes Adj Yes 4.983,792 4,983,792 4,964,454 4,964,454 5,007,357 5,007,357 3,983,821 3,983,821 5,012,046 5,012,046 4,985,530 4,985,530 3,966,244 3,966,244 5 002 928 1 5,002,928 37,906,172 37,906,172 Surplus Surpka No Ad' No $ 3,825,031 !(3,500,000) $ 325,031 1,000 1,000 $ 3,826,031 3,500,000 $ 326,031 Surplus Surplus No Adj No AN Funds Surpkis Actual % Yes 2.2715% 2.0848% AN Funds Surplus Actual % Yes 22.1674% 22.2098% Surplus Yes Ad' Surplus Yes Surplus No Adj Surplus No AN Funds Actual % I Surplus Yes 5,043,513 5,043.513 2,009,832 2,009,832 2,016,557 2;016,557 2,371,532 2,371,532 1,011,834 1,011,834 4,983,135 4,983,135 7,514,004 7,514,004 2 413 506 1 413 506 27,363,913 1 27,363,913 116.0023%1 16.0329X Surplus Surplus Yes Ad Yes 5,755,666 5,755,666 3,547,597 3,547,597 9.303,263 9,303,263 Surplus Surplus No Ad' No AN Funds Surplus Actual % Yes 5.4405% 5.4509% 74,573,348 74,573,348 -1 74,573,3481 1 .1 143.6103%1 43.6936% 78,467,5291 74,631,498 1 3,500,000 1 78.131,498 1 1 3,926,031 3,500,000 326, 331 Portfolio - City Investments Amortized Custodian - Availability us issuerfrype Value 2002 RDA U.S. Bank-CIP Yes U.S.Treasury BIN 27,893,439 2003 Taxable RDA U.S. Bank -CIP Yes U.S.Treasury BIN 1,991,998 2004 Finance Authority -CIP Yes U.S.Treasury Bill 9,902,206 2004 Finance Authority -CIP Yes U.S.Tressury Bill 44,828,773 Yes Total - U.S. Treasury 84,616,416 Portfolio - Mutual Funds Trustee - Availability Surplus Money Market Mutual Fund Book Value Civic Center U.S.Bank - Project YES 1st American Civic Center U.S.Bank - Debt Svc YES 1st American 501,896 1994 RDA U.S. Bank -Debt Svc YES 1 st American 1995 RDA U.S.Sank - CIP YES 1 st American 1995 RDA U.S.Sank - Special Fund YES 1st American 2004 Fin Auth -1995 US Bank - Escrow YES 1st American 101 1998 RDA U.S.Sank - CIP YES 1st American 1998 RDA U.S.Sank - Dbt Svc YES 1 st American 1998 RDA U.S.Bank - Special Fund YES 1st American 1998 RDA U.S.Bank - CIP YES 1st American 2001 RDA U.S. Bank - Dbt Svc YES 1st American 2001 RDA U.S. Bank - CIP YES 1 st American 2002 RDA U.S. Bank - Dbt Svc YES 1 st American 2002 RDA U.S. Bank - CIP YES 1st American 1,497,743 2003 Taxable RDA U.S. Bank - DS YES 1st American 70 2003 Taxable RDA U. S. Banc -COI YES 1 st American 2003 Taxable RDA U. S. Bank-CIP YES 1st American 2,756,875 2004 Fin Auth US Banc - CIP YES 1st American 3,163,777 2004 Fin Auth US Banc - COI YES 1 at American 5,035 Subtotal - Mutual Fund 7,925,497 Surplus Surplus Yes Ad' Yes 27,893,439 27,893,439 1,991,998 1,991,998 9,902,206 9,902,206 44,828,773 44.828,773 84,616,416 84,616,416 Surplus Yes Ad' Surplus Yes 501,896 501,8% 101 101 1,497,743 1,497,743 70 70 2,756,875 2,756,875 3,163,777 3,163,777 5,035 5,035 7,925,497 7,925,497 Total Fiscal Agent Investments I 9ZS41,9131 1 92,541,913 1 - I 9$6417913 MEN Surplus No Ad' Surplus No AN Farads Surplus Actual % Yes 49.4834X 49.5780% AN Funds Surplus Actual % Yes 4.6348% 4.6437% Grand Total 1170,1111119,4472 1 167,173,411 1 3,500,000 1170,673,411 1 1 3,8211,031 3,500 000 326,0 1 1100.0000% 100.0000% r NNC7 V- CDI �rrfAt)N W f r �q Q ep CO) p $ ��OI(j� r V a(� 10 L QN N U) Wl7�'�,�, I T- M P A A $ A A ii C4 Oi I M Q O NchNsA s3NOV�V. m ea Q N 0 cli 0Oa'� � ` a�pp a'r O 0 tL ai V. m C% N .6 R-U. cm 0 �Np co �NNCOD� p 1=04 p �p 8 C7aN01C10�� v O N aA0 NA v Yf N OCNpPco N$ O��Qr. 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M .W� �0 O t0 1A tD Cc e CD CV) )M � tc C0 Ki p ui c0 Z°WO�Nv� N M co to tO to tG «eee eN ULA00)Mp pd' NMeMN1[A co w (o co co •'eee a aR - COC6 N M N N aR co cc to co Oce7V-MCDaR �e MMN1A Q co co co co co O1� aR�00 aR M M N N All t0 to (6 co cG 41 0 m C C � y C m m U Q H m- > R C m aiiaIr O 0 % ccc�� W W W v ea $ o N N N C 0 m O O c c c x c- QQQNQg 10 CL N N Cm > C � Q C O � _>+ Q cc 0 N CU ■ C LL m Ncc C •` to CU ■ Q N C V C X ■ cc Q CO H Z LL Q 'Vr O ■ C cc � C � C L � cc E > o ■ z Q 0 0 0 0 rn rn to ■ O S � •m •m W W CL H Q N N CU •co — co +r co �Q m 7 7 LL O= Q Q Q0 a CIO t o � C� o N o 0 0 0 0 LL O Ul) O tU O CV ,� CV �ua��ad V O O CITY OF LA QUINTA CITY CITY RDA RDA FA BALANCE SHEET 09/30/04 FIXED LONG TERM FIXED LONGTERM FINANCING LONG TERM GRAND CITY ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL ASSETS: POOLED CASH (19,100,858.04) 0.00 0.00 31.612.176.09 0.00 0.00 5,046.61 0.00 12,516,364.66 LORP 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-BILLMOTES S OTHER 65,331,000.00 0.00 0.00 85,000,000.00 0.00 0.00 0.00 0.00 150,331.000.00 AUTO MALL CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LORP CASH 0.00 0.00 0.00 58.149.85 0.00 0.00 0.00 0.00 58.149.95 BOND REDEMPTION CASH 0.00 0.00 0.00 100.55 0.00 0.00 501.895.83 0.00 501.996.38 BOND RESERVE CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 BON PROJECT CASH 0.00 0.00 0.00 7,418,394.76 0.00 0.00 5.034.69 0.00 7.423.429.45 BOND ESCROW CASH 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PETTY CASH 1,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11000.00 CASH i INVESTMENT TOTAL 46,231,141.96 0.00 0.00 124,700,821.25 0.00 0.00 511,977.13 0.00 171.443,940.34 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 433.888.87 0.00 0.00 60.900.00 0.00 0.00 0.00 0.00 494.788.87 PREMIUMIDISCOUNT ON INVESTMENT (60,914.41) 0.00 0.00 (383,583.45) 0.00 0.00 0.00 0.00 (444,49W) LORP-ACCOUNTS RECEIVABLE 0.00 0.00 0.00 81,629.59 0.00 0.00 0.00 0.00 81,629.59 INTEREST RECEIVABLE (7,531.25) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (7,531.25) LOANMOTES RECEIVABLE 0.00 0.00 0.00 12.741,527.47 0.00 0.00 90.000,000.00 0.00 102.741,527.47 DUE FROM OTHER AGENCIES 4,090,311.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,090,311.75 DUE FROM OTHER AGENCIES-CVAG 879,096.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 679,096.89 CVAG ALLOWANCE (879,096.69) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (879.096.69) DUE FROM OTHER GOVERNMENTS 14,033.81 0.00 0.00 436,363.49 0.00 0.00 0.00 0.00 450,397.30 DUE FROM OTHER FUNDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ADVANCES TO OTHER FUNDS - PRINCIPAL 21,422.880.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21.422,880.21 ADVANCES TO OTHER FUNDS - INTEREST 7,787,766.42 0.00 0.00 5.338,257.67 0.00 0.00 0.00 0.00 13,126.024.09 ADVANCES TO OTHER FUNDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NSF CHECKS RECEIVABLE 2,069.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.069.00 ACCRUED REVENUE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 FIXED ASSETS 2,572,807.00 388,021,434.00 0.00 0.00 69,288,415.00 0.00 0.00 0.00 459.882,656.00 ACCUMULATED DEPRECIATION (1,460,883.00) (59,391.538.00) 0.00 0.00 (240,000.00) 0.00 0.00 M00 (61.092,421.00) TRAVEL ADVANCES 1,072.40 0.00 0.00 0.00 0.00 0.00 0.00 000 1,072.40 EMPLOYEE ADVANCES 13,015.70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13,015.70 PREPAID EXPENSES 596,128.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 596,128.14 RECEIVABLE TOTAL 35,404,644.64 328,629.896.00 0.00 18,275,094.77 69,048,415.00 0.00 90.000.000.00 0.00 541.356,050.41 0.00 0.00 0.00 WORKER COMPENSATION DEPOSIT 240,955.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 240,955.00 RENT DEPOSITS 4,830.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,830.00 UTILITY DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MISC. DEPOSITS 1,073.21 0.00 0.00 0.00 0.00 0.00 _ 0.00_ _ 0.00 1,073.21 DEPOSITS TOTAL 246,858.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 246,858.21 GENERAL FIXED ASSETS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ACCUMULATED DEPRECIATION 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AMOUNT AVAILABLE TO RETIRE L/T DEBT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AMOUNT TO BE PROVIDED FOR UT DEBT 0.00 0.00 1,970,562.85 0.00 0.00 247,549,965.00 0.00 94,814,343.00 344.334,860.85 TOTAL OTHER ASSETS 0.00 0.00 1,970,552.85 0.00 0.00 247,549,965.00 0.00 94,814 343.00 344,334,860.85 TOTAL ASSETS 81,882,644.81 328,629.896.00 1,970,552.85 142,975,916.02 69,048,415.00 247,549,965.00 90,511,977.13 94,814,343.00 1,057,383,709.81 LIABILITIES: ACCOUNTS PAYABLE 559,186.80 0.00 0.00 19,645.49 0.00 0.00 0.00 0.00 578,832.29 DUE TO OTHER AGENCIES 118.962.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 118,962.79 DUE TO OTHER FUNS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ADVANCES FROM OTHER FUNDS - PRINCIPAL 5,363,587.67 0.00 0.00 21,397,550.21 0.00 0.00 0.00 0.00 26.761,137.88 ADVANCES FROM OTHER FUNS - INTEREST 0.00 0.00 0.00 7,787,767.52 0.00 0.00 0.00 0.00 7,787,767.52 INTEREST PAYABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 RETENTION PAYABLE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PAYROLL LIABILITIES 148,527.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 148,527.62 STRONG MOTION INSTRUMENTS 9,701.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,701.78 FRINGE TOED LIZARD FEES 68.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 68.87 SUSPENSE 45.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 45.00 DUE TO THE CITY OF LA QUINTA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 PAYABLES TOTAL 6,200,080.53 0.00 0.00 29,204,963.22 0.00 0.00 0.00 0.00 35.405,043.75 ENGINEERING TRUST DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SO. COAST AIR QUALITY DEPOSITS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LORP DEPOSITS 0.00 0.00 0.00 18,664.00 0.00 0.00 0.00 0.00 18,664.00 DEVELOPER DEPOSITS 1,415,200.10 0.00 0.00 2,835.00 0.00 0.00 0.00 0.00 1,418,035.10 MISC. DEPOSITS 604,247.63 0.00 0.00 25,000.00 0.00 0.00 0.00 0.00 629.247.63 AGENCY FUND DEPOSITS 884 973.21 0.00 0.00 0.00 0.00 0.00 0.00 _0.00 884,973.21 TOTAL DEPOSITS 2,904,420.94 0.00 0.00 46,499.00 0.00 0.00 0.00 0.00 2,950.919.94 DEFERRED REVENUE 3,767,177.88 0.00 0.00 10,618,101.84 0.00 0.00 90,000,000.00 0.00 104,385,279.72 OTHER LIABILITIES TOTAL 3,767,177.88 0.00 0.00 10,618,101.84 0.00 0.00 90,000,000.00 0.00 104,385,279.72 COMPENSATED ABSENCES PAYABLE 0.00 0.00 531,553.26 0.00 0.00 0.00 0.00 0.00 531,553.26 DEVELOPER AGREEMENT 0.00 0.00 1,010,688.59 0.00 0.00 0.00 0.00 0.00 1,010,688.59 DUE TO THE CITY OF LA OUINTA 0.00 0.00 428,311.00 0.00 0.00 0.00 0.00 0.00 428,311.00 DUE TO COUNTY OF RIVERSIDE 0.00 0.00 0.00 0.00 0.00 2,050,000.00 0.00 0.00 2,050.000.00 DUE TO C.V. UNIFIED SCHOOL DIST. 0.00 0.00 0.00 0.00 0.00 6,667,336.00 0.00 0.00 6,667.336.00 DUE TO DESERT SANS SCHOOL DIST. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LOANS PAYABLE 0.00 0.00 0.00 0.00 0.00 90.000.000.00 0.00 0.00 90.000,000.00 BONDS PAYABLE 0.00 0.00 0.00 0.00 0.00 148,832,629.00 0.00 _ 94: 814,343.00 243,646,972.00 TOTAL LONG TERM DEBT 0.00 0.00 1,970,552.85 0.00 0.00 247,549,965.00 0.00 94,814.343.00 344,334,860.85 TOTAL LIABILITIES 12,871,679.35 0.00 1,970,5W.85 39,869,564.06 0.00 247,549,965.00 90.000,000.00 94,814,343.00 487.076,104.26 EQUITY -FUND BALANCE 69,010,965.46 328,629,896.00 0.00 103,106,351.96 69,048,415.00 0.00 511,977.13 0.00 570,307,605.55 TOTAL LIABILITY i EQUITY 81,882.844.81 328,829.898.00 1,970,552.85 142,975,916.02 89.048,415.00 247 549 965.00 90.511,977.13 94,814,343.00 1057 383 709.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CASH i INVESTMENT TOTAL 171,443,940.34 PREMIUMIDISCOUNT ON INVESTMENT (444,497.86) TOTAL 170,999,442.48 12 INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: November 10, 2004 TITLE: Month End Cash Report — October 2004 BACKGROUND: This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances), but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. J6hn M. Falconer, Finance Director 2 C C LL. a� a� CO st MCO pip O ti i�pp M I.°N� NON)MF.aO0))cv)r,- N 0 ~cN�0) O C) Lq O 1- 00)j' CC) ccei co CV 1� to cV p c�pp ��pp ~ON�ppc�7Mr 0ov W N 0) ( NOOCN v�e�-rnGO- ccf) �� CN ti � co ti t0 U') co U) co O co ��N NC7MC)O�cMO _�p ,Cp f�f.��ONp ppl-C N ytiN O'cO�MCDN >c~O LO NOOK ��A►,dC6 -C6, co ccoo c0 c0 CO O O CO COO. O (G LO Cli0) cA to p O M M �g� CC) C Ln � LLd v r- L ch cM CM ch 0) O p cc') cLO 40 cf) C) CEO to cM0 O N 06 c" � U O v p 0) o In c0 c0 c0 c0 CM C ti � � r- LL y N p u) ti w O L6 .N0 CNO co a0 O C Nqq CO cM c0 O c0 Cc O O O to N Lq 0) Ct N e� T_ tC) M �U�O000O M CV) qqt Go w N Y t0 t0 CEO co 0 00 co t�U U Q N t0 O CL O coC C C6 «f C c N y C Cm y0 O co C Cl w «s m C 10 Y �78 cl, c�pp m C o N rm c�4g m ` C D C w m N E E E 7 N y��c`acc�a c va. v n >>'aai�oaoi�a�imCLM 2Q2-)Q a1203: - W Q3 Q W-5Qcn0zan Li- y > E a� o N c�Ci C E F C) X tp E Cc' .N, C. C N a N N fl N �p M MA L � � � o ~ m O O M �' c0 �- O 0 C T N M L N O m >: C � N C p N Q� O 7 0 .. N C 'r N O +a C N M .- ~ C O C N N E O N ti 0 _O to N > COp O tZ > C O . ZO C. O 3 C_ y _ co ftl t M N y Q 0 N U O 0-0 w Of 0 C_ N .N O c � � oN 4 E 0 ? LL. a C 7 H OO ce) \ 0 C Q O "' C p O N acLO .0- m 0 0)0 C N N Np N y �� C ` a� U y o w 0 0 am L w LL N C N w co c0 0 U ro cco '.0 L~ m H N V ,uw 0E �j r•o .r m d �> n ac CL m E c a m C. N a — O N N E C C y tW 0 .Lr .Lr N a CCcU� .0-5 ?' C C� N 7 c) a� c0 O CL 0 �c c E E N LO 0 0 a c la E �o N O If O O N V C N N -m m �rn m N C L O Cl0.0 C x a: t m +. C71 U rn Of .. CL Nt 4) Nv .. y N p O C4 J c0 E C m N C O LlN 0 y 0 a�0 O a�c� N m� V d .0 0 ooc c a LL H M H 0 cn c m u v 2 Phil Angelides, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report CorF---`- Bc 3.2 Commercial Paper 15.48% Tin Depc 12.2 LAIF Performance Report Quarter Ending 09/30/04 Apportionment Rate: 1.67% Earnings Ratio: .00004580259912957 Fair Value Factor: .998736821 PMIA Average Monthly Effective Yields August 2004 1.672% September 2004 1.771 % October 2004 Not available Pooled Money Investment Account Portfolio Composition $50.7 Billion 09/30/04 Loans Treasuries 11.24% 13.95% CD's/BN's 15.86% rtgages ).70% Agencies 27.25% ■ Treasuries O Mortgages M Agencies ■ CD's/BN's *Time Deposits ® Bankers Acceptances ■ Repo ■ Commercial Paper 0 Corporate Bonds E3Loans ■ Reverses Recent Treasury Bill Auction Results Page 1 of 2 Tre ur C i ect *SurwL. Of #it PubhcDebt Savings Bonds TreasurvDirect. Accounts and :Information Savings Bonds Tools Treasu. Bills Notes., and Bonds Auction Information Electronic Services The Public Debt SLGS Government Securities .................................................. Market Regulationo Resources Site Maxi Search Forms FAQs Contact Us Mailing._Lists About Us Law and Guidance FO:IA Priva_cv and Legal Notices ....................................... Recent Treasury Bill Auction Results Issue Maturity Discount Investment Term Date Date Rate % Rate % 29-DAY 10-28-2004 11-26-2004 1.760 1.787 91-DAY 10-28-2004 01-27-2005 1.855 1.890 182-DAY 10-28-2004 04-28-2005 2.040 2.090 28-DAY 10-21-2004 11-18-2004 1.570 1.594 91-DAY 10-21-2004 01-20-2005 1.770 1.803 182-DAY 10-21-2004 04-21-2005 1.990 2.038 29-DAY 10-14-2004 11-12-2004 1.555 1.579 91-DAY 10-14-2004 01-13-2005 1.680 1.711 182-DAY 10-14-2004 04-14-2005 1.955 2.002 2-DAY 10-13-2004 10-15-2004 1.680 1.703 28-DAY 10-07-2004 11-04-2004 1.530 1.553 91-DAY 10-07-2004 01-06-2005 1.685 1.716 182-DAY 10-07-2004 04-07-2005 1.990 2.038 14-DAY 10-01-2004 10-15-2004 1.595 1.618 28-DAY 09-30-2004 10-28-2004 1.590 1.614 91-DAY 09-30-2004 12-30-2004 1.710 1.741 182-DAY 09-30-2004 03-31-2005 1.950 1.997 28-DAY 09-23-2004 10-21-2004 1.605 1.629 91-DAY 09-23-2004 12-23-2004 1.685 1.716 182-DAY 09-23-2004 03-24-2005 1.870 1.914 28-DAY 09-16-2004 10-14-2004 1.525 1.553 91-DAY 09-16-2004 12-16-2004 1.640 1.671 182-DAY 09-16-2004 03-17-2005 1.840 1.883 28-DAY 09-09-2004 10-07-2004 1.540 1.566 91-DAY 09-09-2004 12-09-2004 1.635 1.663 182-DAY 09-09-2004 03-10-2005 1.860 1.903 7-DAY 09-08-2004 09-15-2004 1.480 1.513 12-DAY 09-03-2004 09-15-2004 1.460 1.491 28-DAY 09-02-2004 09-30-2004 1.425 1.449 91-DAY 09-02-2004 12-02-2004 1.580 1.607 182-DAY 09-02-2004 03-03-2005 1.775 1.815 14-DAY 09-01-2004 09-15-2004 1.480 1.513 28-DAY 08-26-2004 09-23-2004 1.360 1.383 92-DAY 08-26-2004 11-26-2004 1.515 1.541 182-DAY 08-26-2004 02-24-2005 1.750 1.791 28-DAY 08-19-2004 09-16-2004 1.360 1.383 91-DAY 08-19-2004 11-18-2004 1.470 1.498 Price Per CUSIP $100 99.858222 912795RN3 99.531097 912795RX 1 98.968667 912795SL6 99.877889 912795RM5 99.552583 912795RW3 98.993944 912795SK8 99.874736 912795RL7 99.575333 912795RV5 99.011639 912795SJ1 99.990667 912795TD3 99.881000 912795RK9 99.574069 912795RU7 98.993944 912795SH5 99.937972 912795TD3 99.876333 912795RJ2 99.567750 912795RTO 99.014167 912795SG7 99.875167 912795RH6 99.574069 912795RS2 99.054611 912795SF9 99.881 912795RG8 99.585 912795RR4 99.070 912795SE2 99.880 912795RFO 99.587 912795RQ6 99.060 912795SD4 99.971 912795TC5 99.951 912795TC5 99.889 912795RE3 99.601 912795RP8 99.103 912795SC6 99.942 912795TC5 99.894 912795RD5 99.613 912795RN3 99.115 912795SB8 99.894 912795RC7 99.628 912795RM5 http://wwws.publicdebt.treas.gov/AI/OFBills l l/l/2004 Recent Treasury Bill Auction Results Page 2 of 2 182-DAY 08-19-2004 02-17-2005 1.725 1.764 99.128 912795SAO 28-DAY 08-12-2004 09-09-2004 1.400 1.422 99.891 912795RB9 92-DAY 08-12-2004 11-12-2004 1.470 1.497 99.624 912795RL7 Effective with the 11 /2/98 auction, all bills are auctioned using the single -priced method. Return to Auction Information Page Updated November 1, 2004 11:12:50 AM EST http://wwws.publicdebt.treas.gov/AI/OFBills l l/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 ( Year End Data as of October 29, 2004 Commercial Paper Rates and Outstandings Derived from data supplied by The Depository Trust Company Trade data insufficient to support calculation of the 90-day AA nonfinancial rate(s) for October 29, 2004 . Posted November 1, 2004 Discount rates AA AA A2/P2 Term financial nonfinancial nonfinancial 1-day 1.82 11 1.83 11 1.90 7-day 1.78 1.78 1.91 15-day 1.80 1.82 1.94 30-day 1.89 1.87 1.99 160-day 2.02 2.02 2.15 190-day 11 2.08 11 ND 1 2.15 Yield curve Money market basis F nafwi l Nonfinancial ........... A2/P2 Percent 1 7 1.5 30 60 90 Drays to Matunity http://www.federalreserve.gov/Releases/CP/ 2.14 2.3 2.2 2.1 2.0 1.9 1.8 1.7 6 l l/1/2004 FRB:Commercial Paper Rates and Outstandings Page 2 of 3 Discount rate spread Basis points 124 100 1 60 4 20 0 2001 2002 2003 2004 Discount rate history Thirty -day commercial paper (daily) Financial — -- Nonfinancial ..�........ A2/P2 2001 2002 2003 2004 Outstandings Weekly (Wednesday), seasonally adjusted Percent E 1 M ;. �' http://www.federalreserve.gov/Releases/CP/ 11/1/2004 FRB:Commercial Paper Rates and Outstandings Page 3 of 3 Billions of dollars 120 1.240 1.220 1200 1180 111 1140 2M] Billions of dollars ZVV 2002 2003 2004 IC IN M IE 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 :Q3 Release I About I Outstandings I Historical discount rates I Historical outstandings I Year End Home I Statistical releases Accessibilitvl Contact Us Last update: November 1, 2004 http://www.federalreserve.gov/Releases/CP/ 11 /1 /2004 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --October 29, 2004 Pagel of 4 Federal Reserve Statistical Release H.15 Selected Interest Rates (daily) Skip to Content Release Date: October 29, 2004 Weekly._release._ dates._ and._alnlouncements ( Historical._ data I About Daily update Other formats: Screen reader ( 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 October 29, 2004 Yields in percent per annum 2004 2004 2004 2004 Oct Oct Oct Oct Instruments 25 26 27 28 Federal funds (effective) 1 2 3 1.76 1.72 1.77 1.79 Commercial paper 3 4 5 Nonfinancial 1-month 1.83 1.85 1.84 1.87 2-month 1.89 1.90 1.90 3-month Financial 1-month 1.85 1.85 1.87 1.89 2-month 1.94 1.95 1.95 1.98 3-month 2.03 2.05 2.02 2.07 CDs (secondary market) 3 6 1-month 1.92 1.92 1.92 1.95 3-month 2.05 2.06 2.08 2.11 6-month 2.18 2.19 2.21 2.25 Eurodollar deposits (London) 3 7 1-month 1.88 1.89 1.89 1.93 3-month 2.04 2.05 2.05 2.09 6-month 2.17 2.18 2.20 2.23 Bank prime loan 2 3 8 4.75 4.75 4.75 4.75 Discount window primary credit 2 9 2.75 2.75 2.75 2.75 U.S. government securities Treasury bills (secondary market) 3 4 4-week 1.68 1.79 1.75 1.68 3-month 1.87 1.86 1.88 1.87 6-month 2.05 2.05 2.08 2.09 Treasury constant maturities Nominal 10 1-month 1.73 1.82 1.78 1.71 3-month 1.90 1.91 1.92 1.91 6-month 2.10 2.10 2.13 2.14 1-year 2.24 2.24 2.30 2.29 2-year 2.54 2.54 2.63 2.59 3-year 2.78 2.80 2.89 2.86 5-year 3.25 3.26 3.37 3.34 7-year 3.63 3.65 3.76 3.74 10-year 3.99 4.01 4.11 4.09 http://www.federalreserve.gQv/Releases/H 15/update/ 11/1/2004 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --October 29, 2004 Page 2 of 4 20-year 11 Inflation -indexed 12 5-year 7-year 10-year 20-year Inflation -indexed long-term average 13 Interest rate swaps 14 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa 15 Baa State & local bonds 16 Conventional mortgages 17 See overleaf for footnotes 4.74 4.75 4.85 4.83 0.83 0.81 0.90 0.85 1.22 1.23 1.32 1.26 1.63 1.63 1.73 1.68 2.05 2.07 2.17 2.12 2.07 2.09 2.19 2.14 2.45 2.46 2.49 2.55 2.84 2.85 2.87 2.96 3.15 3.16 3.19 3.28 3.41 3.42 3.45 3.55 3.63 3.64 3.67 3.77 3.99 4.01 4.03 4.14 4.38 4.39 4.41 4.52 5.08 5.08 5.09 5.19 5.39 5.39 5.47 5.46 6.12 6.12 6.19 6.19 4.44 5.64 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 ,_. ;_, ,,. 10 http://www.federalreserve.gov/Releases/H15/update/ 11/1/2004 FRB: H.15--Selected Interest Rates, Web -Only Daily Update --October 29, 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. A factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-year rate can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindey 12. 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. 13. Based on the unweighted average bid yields for all Inflation Protected Securities with remaining terms to maturity of more than 10 years. 14. International Swaps and Derivatives Association (ISDA(R)) 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. Eastern time by Garban Intercapital plc and published on Reuters Page. ISDAFIX(R)l. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. . 15. Moody's Aaa rates through December 6, 2001 are averages of Aaa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC. DESCRIPTION OF THE TREASURY 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, 10, and 20 years. Weekly..._release__ dates_._ and announcements I Historical.._ data I About Daily update Other formats: Screen reader I ASCII Statistical releases Home I Economic research and data Accessibili . I Contact L s http://www.federalreserve.gov/Releases/H15/update/ l l/l/2004 •v m w 0 c , N C O •y a m m v c � C N t0 �p m p m •U l0 z > c Q O 00>cM ' .-M M V tf C^M� 0) K� t0._c+ico_ aMON CDO M A N C 9 -M N O c0CL a00V-V-I- o00�0�pps0.�}tti tA�}T- O O ~� cG (0 a0 00 0) w e- N M aD M M cC) 00 0> V- O CO O N V- I- t LN V� co i mm N •- M I� j cA — W Q _ U c O «. m c m cvi ? CL M Q< 00 c N ' GOu) Oc00)1.- I-OI �N O N N •N cO cOORV a0 0) w 1A e M cA a0 m e- aD N m 0 'C m 7 Q O V- r- 1� 1n N CO 0) c0 V- V 1- (O N I 7 N r- N Mr.: Vf LL aiS l0 Q N cu m U m E z° to a° �00to OI�N1- copy w O�cpwowoAvmN co O co NN M 00 .- 1- a0 C a0 c0 a Ci N N a0 Ct a0 a0 1- c0 .. m� Q cOM �c�pp�M 0)MMM INN 00).- P ccf •- O cA0>cMcA0i0>a0MN1� �-` 0>"�M�-ON'�.-� C.4 .. �. �....... �. c O Of :3 0 M N VZ 1 ; w V- 00 I- to �M r�� a0 .- v czm D L C L O m a m a. N M o0 Z ~ ~ .. w w J E� w>, m� w w a w co m f- c rn � Z Q w c) U d� xC 0Oz0 c� rn•- W M` W W w W CL aa? c0 a ~ m N d= r- m� i v ro w �> LLJLr) W��FF--- cn araYIrJ 0 p CO C X m F:31 N mLL E C U O� O 0 m 7 c �� 7 m �JWZWU' Q— Z2O o co wVWaUZ c .+ m� L v m m ma mw Vi ro �v V=U?U=U2wcrz=V �z0 O m Ul N CL m m C C- > ` c�0 m m m m._ " n� p CC W C m HJ!g Qw az�� J�•Jn' W—FZ $ JED co 0>F-�Q O $ o � �aL • mL m 6U)16c� �� ro O ww—O ac55L)Mmac)aw3Fo »O�OLL-OZa.F-wir)1 cnLL z zo '. �, e,, 1 INVESTMENT ADVISORY BOARD Meeting Date: November 10, 2004 TITLE: Pooled Money Investment Board Report for August 2004 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for August 2004 is included in the agenda packet. At the previous meeting staff was asked to obtain historical investment history for the PMIA. The following attachment lists the five year average of the type of investments that the PMIA has invested. RECOMMENDATION: Receive & File n M. Falconer, Finance Director p7 r Q o 0 o 0 0 0 0 0 o O N a° L Ln M C C 7 •L O N 0 0 c 0 0 0 0 0 0 0 0 0 p C CO T O O CM d' O C� O c M L a H � Z J L C M Q O d eL N o w a °- O m c e 1- Ns y CL d Q v, Z v, O �a as oc �v d LLcc v, c a O CL ~ �avmacoHvo�v0a° d C CL V o> l- f O Phil Angelides August 2004 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT August 2004 TABLE OF CONTENTS SUMMARY................................................................ 01 SELECTED INVESTMENT DATA .................................... 02 PORTFOLIO COMPOSITION ........................................ 03 INVESTMENT TRANSACTIONS ..................................... 04 TIMEDEPOSITS........................................................ 14 BANK DEMAND DEPOSITS .......................................... 26 POOLED MONEY INVESTMENT BOARD DESIGNATION... 27 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 2004 WITH AUGUST 2003 (DOLLARS IN THOUSANDS) AUGUST 2004 AUGUST 2003 CHANGE Average Daily Portfolio $ 50,462,951 $ 52,329,426 $ -1,866,474 Accrued Earnings $ 71,670 72,327 -657 Effective Yield 1.672 1.632 +0.04 Average Life -Month End (In Days) 193 221 -28 Total Security Transactions Amount $ 14,704,996 $ 17,732,213 $ -3,027,217 Number 314 400 -86 Total Time Deposit Transactions Amount $ 2,767,600 $ 2,760,100 $ +7,500 Number 138 137 +1 Average Workday Investment Activity $ 793,754 $ 975,348 $ -181,694 Prescribed Demand Account Balances For Services $ 817,066 $ 1,053,666 $ -236,610 For Uncollected Funds $ 132,315 $ 153,331 $ -21,016 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 FHLMCIRemics Corporate Bonds AB 55 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 August 31, 2004 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM AMOUNT PORTFOLIO PRIOR MONTH $ 2,464,369 0 4,708,169 0 $ 7,172,538 $ 4,684,231 8,090,039 3501000 0 0 9,911,735 6,136,795 407 5,110,489 364,302 1,522,537 4,731,036 2,609,300 0 $ 50,583,409 AUGUST 2004 NUMBER AMOUNT 314 $ 14,704,996 9 336,270 138 2,757,600 461 $ 17,797,866 1.672 1.637 2 4.87 +0.84 0.00 0.00 9.31 +0.03 0.00 0.00 14.18 +0.87 9.26 +0.94 15.99 -1.49 0.69 -0.47 0.00 0 0.00 0 19.60 -2.64 12.13 +0.78 0.00 0 10.10 -3.30 0.72 0 3.02 +0.21 9.36 +0.14 4.96 +4.96 0.00 0.00 100.00 JULY 2004 NUMBER AMOUNT 329 $ 15,277,594 3 597 158 4,465,790 490 $ 19,743,981 1.604 1.604 Corpo Boni 3.02 Commercial Paper 10.10% TimE Depos 12.13' Pooled Money Investment Account Portfolio Composition $50.5 Billion 08/31 /04 Loans Treasuries 14.31 % 14.18% CD's/BN's 16.68% rtgages 1.72% Agencies 28.86% ■ Treasuries 0 Mortgages Agencies ■ CD's/BN's O Time Deposits "' Bankers Acceptances ■ Repo ■ Commercial Paper ■ Corporate Bonds Loans ■ Reverses 08/02/04 REDEMPTIONS CP CITIGROUP 08/02/04 1.270 50,000 7 12,347.22 1.288 CP CITIGROUP 08/02/04 1.270 50,000 7 12,347.22 1.288 CP CITIGROUP 08/02/04 1.270 50,000 7 12,347.22 1.288 CP CITIGROUP 08/02/04 1.270 50,000 7 12,347.22 1.288 CP MORG STAN 08/02/04 1.300 50,000 35 63,194.44 1.320 CP MORG STAN 08/02/04 1.300 50,000 35 63,194.44 1.320 CP CITI GLOBAL 08/02/04 1.100 50,000 82 125,277.78 1.118 CP CITI GLOBAL 08/02/04 1.100 50,000 82 125,277.78 1.118 CP COCA COLA 08/02/04 1.100 50,000 82 125,277.78 1.118 CP GECC 08/02/04 1.150 50,000 83 132,569.44 1.169 CP GECC 08/02/04 1.150 50,000 83 132,569.44 1.169 CP CITI GLOBAL 08/02/04 1.070 40,000 95 112,944.44 1.088 CP CITI GLOBAL 08/02/04 1.070 50,000 95 141,180.56 1.088 CP CITI GLOBAL 08/02/04 1.070 50,000 95 141,180.56 1.088 CP GMAC 08/02/04 1.330 50,000 95 175,486.11 1.353 CP GMAC 08/02/04 1.330 50,000 95 175,486.11 1.353 CP GMAC 08/02/04 1.330 50,000 95 175,486.11 1.353 CP GMAC 08/02/04 1.330 50,000 95 175,486.11 1.353 CP JP MORGAN 08/02/04 1.070 50,000 95 141,180.56 1.088 CP JP MORGAN 08/02/04 1.070 50,000 95 141,180.56 1.088 CP JP MORGAN 08/02/04 1.070 50,000 95 141,180.56 1.088 CP JP MORGAN 08/02/04 1.070 50,000 95 141,180.56 1.088 CP GECC 08/02/04 1.070 50,000 103 153,069.44 1.088 CP GECC 08/02/04 1.070 50,000 103 153,069.44 1.088 CP GECC 08/02/04 1.070 50,000 103 153,069.44 1.088 CP GECC 08/02/04 1.070 50,000 103 153,069.44 1.088 CP CITICORP 08/02/04 1.060 50,000 104 153,111.11 1.078 CP CITICORP 08/02/04 1.060 50,000 104 153,111.11 1.078 CP CITICORP 08/02/04 1.060 10,000 105 30,916.67 1.078 CP CITICORP 08/02/04 1.060 50,000 105 154,583.33 1.078 CP CITICORP 08/02/04 1.060 50,000 105 154,583.33 1.078 08/02/04 NO PURCHASES 08/03/04 NO REDEMPTIONS 08/03/04 PURCHASES CP NCAT 08/18/04 1.250 50,000 CP NCAT 08/18/04 1.250 50,000 CP NCAT 08/18/04 1.250 50,000 CP GMAC 08/18/04 1.300 50,000 CP GMAC 08/18/04 1.300 50,000 CP GMAC 08/18/04 1.300 50,000 TREAS BILL 01/27/05 1.710 50,000 TREAS BILL 01/27/05 1.710 50,000 TREAS BILL 01/27/05 1.710 50,000 TREAS BILL 01/27/05 1.710 50,000 4 08/04/04 REDEMPTIONS DISC NOTE FNMA 08/04/04 1.110 50,000 84 129,500.00 1.128 DISC NOTE FNMA 08/04/04 1.110 50,000 84 129,500.00 1.128 DISC NOTE FNMA 08/04/04 1.110 50,000 84 129,500.00 1.128 DISC NOTE FNMA 08/04/04 1.110 50,000 84 129,500.00 1.128 08/04/04 NO PURCHASES 08/05/04 NO REDEMPTIONS 08/06/04 NO PURCHASES 08/06/04 NO REDEMPTIONS 08/06/04 NO PURCHASES 08/09/04 REDEMPTIONS CID GECC 08/09/04 1.150 50,000 90 143,750.00 1.169 CID GECC 08/09/04 1.150 50,000 90 143,750.00 1.169 CID JP MORGAN 08/09/04 1.140 50,000 91 144,083.33 1.159 CID JP MORGAN 08/09/04 1.140 50,000 91 144,083.33 1.159 CID GMAC 08/09/04 1.330 50,000 102 188,416.67 1.354 CID GMAC 08/09/04 1.330 50,000 102 188,416.67 1.354 CID GECC 08/09/04 1.080 25,000 118 88,500.00 1.099 CID GECC 08/09/04 1.080 50,000 118 177,000.00 1.099 CID GECC 08/09/04 1.080 50,000 118 177,000.00 1.099 CID FCAR 08/09/04 1.050 50,000 130 189,583.33 1.069 CID FCAR 08/09/04 1.050 50,000 130 189,583.33 1.069 08/09/04 PURCHASES CID NCAT 08/13/04 1.430 50,000 CID NCAT 08/13/04 1.430 50,000 CID NCAT 08/13/04 1.430 50,000 CID FCAR 12/02/04 1.660 50,000 08/10/04 REDEMPTIONS CID CITI GLOBAL 08/10/04 1.125 50,000 91 142,187.50 1.144 CID JP MORGAN 08/10/04 1.140 50,000 92 145,666.67 1.159 CID JP MORGAN 08/10/04 1.140 50,000 92 145,666.67 1.159 DISC NOTE FHLMC 08/10/04 1.120 50,000 85 132,222.22 1.138 DISC NOTE FHLMC 08/10/04 1.120 50,000 85 132,222.22 1.138 08/10/04 PURCHASES CID GMAC 12/02/04 1.810 50,000 Ei 08/11/04 REDEMPTIONS DISC NOTE FNMA DISC NOTE FNMA MTN COUNTRY 08/11/04 PURCHASES CID BEAR CID BEAR CID GECC CID GECC 08/12/04 NO REDEMPTIONS 08/12/04 PURCHASES CID BEAR CID BEAR CID BEAR CID W/F 08/13/04 REDEMPTIONS CID NCAT CID NCAT CID NCAT DISC NOTE FNMA DISC NOTE FNMA 08/13/04 NO PURCHASES 08/16/04 REDEMPTIONS TREAS NOTE TREAS NOTE 08/16/04 REDEMPTIONS 08/11/04 1.120 08/11/04 1.120 6.770% 08/11/04 4.400 08/18/04 1.510 08/18/04 1.510 08/18/04 1.480 08/18/04 1.480 08/18/04 1.500 08/18/04 1.500 08/18/04 1.500 08/18/04 1.480 50,000 86 - 133,777.78 50,000 86 133,777.78 9,500 936 1,108,320.15 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 08/13/04 1.430 50,000 4 7,944.44 08/13/04 1.430 50,000 4 7,944.44 08/13/04 1.430 50,000 4 7,944.44 08/13/04 1.030 50,000 119 170,236.11 08/13/04 1.030 50,000 119 170,236.11 6.000% 08/15/04 3.744 50,000 859 4,545,148.48 6.000% 08/15/04 3.744 50,000 859 4,545,148.48 DISC NOTE FHLMC 08/16/04 1.060 50,000 125 DISC NOTE FHLMC 08/16/04 1.060 50,000 125 08/16/04 PURCHASES CID FCAR 01/10/05 1.770 20,000 CID FCAR 01/10/05 1.770 50,000 CID HOUSEHOLD 01/10/05 1.800 50,000 CID HOUSEHOLD 01/10/05 1.800 50,000 TREAS BILL 01/27/05 1.650 40,000 TREAS BILL 01/27/05 1.650 40,000 TREAS BILL 01/27/05 1.650 50,000 TREAS BILL 01/27/05 1.650 50,000 6 184,027.78 184,027.78 1.139 1.139 4.316 1.450 1.450 1.450 1.048 1.048 3.744 3.744 1.079 1.079 08/17/04 NO REDEMPTIONS 08/17/04 PURCHASES CD WASHINGTON 1.890% 02/28/05 1.890 50,000 CD WASHINGTON 1.890% 02/28/05 1.890 50,000 CID GMAC 12/02/04 1.820 50,000 08/18/04 REDEMPTIONS CID BEAR 08/18/04 1.500 50,000 6 12,500.00 1.521 CID BEAR 08/18/04 1.500 50,000 6 12,500.00 1.521 CID BEAR 08/18/04 1.500 50,000 6 12,500.00 1.521 CID W/F 08/18/04 1.486 50,000 6 12,333.33 1.501 CID BEAR 08/18/04 1.510 50,000 7 14,680.56 1.531 CID BEAR 08I18/04 1.510 50,000 7 14,680.56 1.531 CID GE CO 08/18/04 1.480 50,000 7 14,388.89 1.501 CID GE CO 08/18/04 1.480 50,000 7 14,388.89 1.501 CID GMAC 08/18/04 1.300 50,000 15 27,083.33 1.319 CID GMAC 08/18/04 1.300 50,000 15 27,083.33 1.319 CID GMAC 08/18/04 1.300 50,000 15 27,083.33 1.319 CP NCAT 08/18/04 1.250 50,000 15 26,041.67 1.268 CID NCAT 08/18/04 1.250 50,000 15 26,041.67 1.268 CID NCAT 08/18/04 1.250 50,000 15 26,041.67 1.268 CID BEAR 08/18/04 1.360 50,000 21 39,666.67 1.380 CID BEAR 08/18/04 1.360 50,000 21 39,666.67 1.380 CID W/F 08/18/04 1.290 30,000 23 24,725.00 1.309 CID W/F 08/18/04 1.290 50,000 23 41,208.33 1.309 08/18/04 PURCHASES FHLB 3.750% 08/15/07 3.130 24,000 CID GMAC 01/10/05 1.950 50,000 CID GMAC 01/10/05 1.950 26,000 08/19/04 NO REDEMPTIONS 08/19/04 PURCHASES CP GOLDMAN 11/08/04 1.600 50,000 CID GOLDMAN 11/08/04 1.600 50,000 CP GOLDMAN 11/08/04 1.600 50,000 CID GOLDMAN 11/08/04 1.600 50,000 CID GMAC 01/10/05 1.960 50,000 CID GMAC 01/10/05 1.960 50,000 08/20/04 REDEMPTIONS BN B/A 1.130% 08/20/04 1.130 50,000 101 158,513.89 1.146 BN B/A 1.130% 08/20/04 1.130 50,000 101 158,513.89 1.146 BN B/A 1.130% 08/20/04 1.130 50,000 101 158,513.89 1.146 CD HSBC 1.140% 08/20/04 1.140 50,000 95 150,416.67 1.156 7 08/20/04 REDEMPTIONS (continued) CD HSBC 1.140% 08/20/04 1.140 50,000 95 150,416.67 1.156 CP JP MORGAN 08/20/04 1.200 25,000 92 76,666.67 1.220 CP JP MORGAN 08/20/04 1.200 50,000 92 153,333.33 1.220 CP JP MORGAN 08/20/04 1.200 50,000 92 153,333.33 1.220 CP BARTON 08/20/04 1.140 20,000 101 63,966.67 1.160 CP FCAR 08/20/04 1.050 50,000 144 210,000.00 1.069 CP FCAR 08/20/04 1.050 50,000 144 210,000.00 1.069 CP FCAR 08/20/04 1.050 50,000 144 210,000.00 1.069 08/20/04 PURCHASES CD W/F 1.510% 08/31/04 1.510 30,000 CD W/F 1.510% 08/31/04 1.510 50,000 CD W/F 1.510% 08/31/04 1.510 50,000 CD W/F 1.510% 08/31/04 1.510 50,000 CD W/F 1.510% 09/02/04 1.510 40,000 CD W/F 1.510% 09/02/04 1.510 50,000 CP GMAC 10/01/04 1.660 50,000 FNMA 3.000% 08/15/07 3.007 50,000 FNMA 3.000% 08/15/07 3.007 50,000 FNMA 3.000% 08/15/07 3.007 50,000 FHLB 3.375% 08/15/07 3.110 25,000 FHLB 3.375% 08/15/07 3.110 50,000 FHLB 3.375% 09/14/07 3.110 50,000 FHLB 3.375% 09/14/07 3.110 50,000 08/23/04 NO REDEMPTIONS 08/23/04 PURCHASES CP GECC 01/27/05 1.810 26,000 CP GECC 01/27/05 1.810 50,000 CP GECC 01/27/05 1.810 50,000 MTN JP MORGAN 3.125% 12/11/06 3.000 23,645 08/24/04 NO REDEMPTIONS 08/24/04 PURCHASES CD SOC GEN 1.780% 01/03/05 1.780 50,000 CD SOC GEN 1.780% 01/03/05 1.780 50,000 CD UBS 1.795% 01/03/05 1.790 50,000 CD UBS 1.795% 01/03/05 1.790 50,000 CD UBS 1.795% 01/03/05 1.790 50,000 CD UBS 1.795% 01/03/05 1.790 50,000 CD SVENSKA 1.833% 01/27/05 1.845 50,000 CD SVENSKA 1.833% 01/27/05 1.845 50,000 CP B/A 12/29/04 1.750 50,000 CP B/A 12/29/04 1.750 50,000 CP GECC 12/29/04 1.740 50,000 8 08/24/04 PURCHASES (continued) CID GECC CP GECC CID GECC CID GECC CID GECC CID GECC CID GECC DISC NOTE FNMA DISC NOTE FNMA 08/25/04 NO REDEMPTIONS 08/25/04 PURCHASES CID LEHMAN CID LEHMAN CID LEHMAN CID LEHMAN MTN FR COUNTRY 08/25/04 PURCHASES c/ DISC NOTE FNMA DISC NOTE FNMA DISC NOTE FNMA TREAS BILL TREAS BILL TREAS BILL TREAS BILL 08/26/04 REDEMPTIONS CID LEHMAN CID LEHMAN CID LEHMAN CID LEHMAN 08/26/04 SALES c/ DISC NOTE FNMA DISC NOTE FNMA DISC NOTE FNMA TREAS BILL TREAS BILL TREAS BILL TREAS BILL 08/26/04 PURCHASES CID LEHMAN 12/29/04 1.740 50,000 12/29/04 1.740 50,000 12/29/04 1.740 50,000 01/03/05 1.740 50,000 01/03/05 1.740 50,000 01/03/05 1.740 50,000 01/03/05 1.740 50,000 01 /20/05 1.760 50,000 01/20/05 1.760 50,000 08/26/04 1.490 25,000 08/26/04 1.490 50,000 08/26/04 1.490 50,000 08/26/04 1.490 50,000 1.910% 08/25/06 1.910 25,000 11/22/04 1.500 2,475 11/22/04 1.500 50,000 11/22/04 1.500 50,000 12/09/04 1.500 505 12/09/04 1.500 2,000 12/09/04 1.500 50,000 12/09/04 1.500 50,000 08/26/04 1.490 25,000 1 1,034.72 1.511 08/26/04 1.490 50,000 1 2,069.45 1.511 08/26/04 1.490 50,000 1 2,069.45 1.511 08/26/04 1.490 50,000 1 2,069.45 1.511 11/22/04 1.500 2,475 1 100.67 1.521 11/22/04 1.500 50,000 1 2,033.00 1.521 11/22/04 1.500 50,000 1 2,033.00 1.521 12/09/04 1.500 505 1 20.83 1.521 12/09/04 1.500 2,000 1 MARGIN CALL MARGIN CALL 12/09/04 1.500 50,000 1 2,072.92 1.521 12/09/04 1.500 50,000 1 2,072.92 1.521 08/27/04 1.510 35,000 9 CID HOUSEHOLD 08/27/04 1.520 50,000 CID HOUSEHOLD 08/27/04 1.520 50,000 CID HOUSEHOLD 08/27/04 1.520 50,000 CID HOUSEHOLD 08/27/04 1.520 50,000 CID LEHMAN 08/27/04 1.510 50,000 CID LEHMAN 08/27/04 1.510 50,000 CID LEHMAN 08/27/04 1.510 50,000 CID LEHMAN 08/27/04 1.510 50,000 FR SBA 1.550% 09/25/29 1.550 32,305. MTN FR COUNTRY 1.850% 08/26/05 1.850 33,000 08/26/04 PURCHASES c/ DISC NOTE FNMA DISC NOTE FNMA DISC NOTE FNMA 08/27/04 REDEMPTIONS 11/17/04 1.530 50,000 11/22/04 1.530 30,000 12/08/04 1.530 22,485 BN BANC ONE 1.110% 08/27/04 1.110 50,000 128 197,333.33 1.125 BN BANC ONE 1.110% 08/27/04 1.110 50,000 128 197,333.33 1.125 CD LLOYDS 1.080% 08/27/04 ' 1.080 50,000 127 190,500.00 1.095 CD LLOYDS 1.080% 08/27/04 1.080 50,000 127 190,500.00 1.095 CD LLOYDS 1.080% 08/27/04 1.080 50,000 127 190,500.00 1.095 CD LLOYDS 1.080% 08/27/04 1.080 50,000 127 190,500.00 1.095 CD RABO 1.080% 08/27/04 1.070 50,000 127 188,742.74 1.085 CD RABO 1.080% 08/27/04 1.070 50,000 127 188,742.74 1.085 CD DEXIA 1.080% 08/27/04 1.075 50,000 130 194,100.71 1.090 CD DEXIA 1.080% 08/27/04 1.075 50,000 130 194,100.71 1.090 CD CR AGRIC 1.090% 08/27/04 1.090 50,000 141 213,458.33 1.105 CD CR AGRIC 1.090% 08/27/04 1.090 50,000 141 213,458.33 1.105 CD US BANK 1.080% 08/27/04 1.080 50,000 142 213,000.00 1.095 CD US BANK 1.080% 08/27/04 1.080 50,000 142 213,000.00 1.095 CD MONTREAL 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD MONTREAL 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD MONTREAL 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD MONTREAL 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD SVENSKA 1.050% 08/27/04 1.050 50,000 148 215,833.33 1.065 CD SVENSKA 1.050% 08/27/04 1.050 50,000 148 215,833.33 1.065 CD CR AGRIC 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD CR AGRIC 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD CR AGRIC 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD CR AGRIC 1.030% 08/27/04 1.030 50,000 148 211,722.22 1.044 CD SVENSKA 1.050% 08/27/04 1.050 50,000 150 218,750.00 1.065 CD UBS 1.045% 08/27/04 1.040 50,000 151 218,115.66 1.054 CD UBS 1.045% 08/27/04 1.040 50,000 151 218,115.66 1.054 CID LEHMAN 08/27/04 1.510 35,000 1 1,468.06 1.531 CID LEHMAN 08/27/04 1.510 50,000 1 2,097.22 1.531 CID LEHMAN 08/27/04 1.510 50,000 1 2,097.22 1.531 CID LEHMAN 08/27/04 1.510 50,000 1 2,097.22 1.531 10 08/27/04 REDEMPTIONS (continued) CID LEHMAN 08/27/04 1.510 50,000 1 2,097.22 1.531 CID HOUSEHOLD 08/27/04 1.520 50,000 1 2,111.11 1.541 CID HOUSEHOLD 08/27/04 1.520 50,000 1 2,111,11 1.541 CID HOUSEHOLD 08/27/04 1.520 50,000 1 2,111.11 1.541 CID HOUSEHOLD 08/27/04 1.520 50,000 1 2,111.11 1.541 CID JP MORGAN 08/27/04 1.280 50,000 72 128,000.00 1.301 CID JP MORGAN 08/27/04 1.280 50,000 72 128,000.00 1.301 CID JP MORGAN 08/27/04 1.280 50,000 72 128,000.00 1.301 CID JP MORGAN 08/27/04 1.280 50,000 72 128,000.00 1.301 CID CITI GLOBAL 08/27/04 1.220 40,000 94 127,422.22 1.241 CID CITI GLOBAL 08/27/04 1.220 50,000 94 159,277.78 1.241 CID FCAR 08/27/04 1.120 50,000 134 208,444.44 1.140 CID FCAR 08/27/04 1.120 50,000 134 208,444.44 1.140 CID GECC 08/27/04 1.080 50,000 137 205,500.00 1.100 CID GECC 08/27/04 1.080 50,000 137 205,500.00 1.100 CID GECC 08/27/04 1.080 50,000 141 211,500.00 1.100 CID GECC 08/27/04 1.080 50,000 141 211,500.00 1.100 CID GECC 08/27/04 1.080 50,000 141 211,500.00 1.100 CID GECC 08/27/04 1.080 50,000 141 211,500.00 1.100 CID GECC 08/27/04 1.040 50,000 151 218,111.11 1.059 CID GECC 08/27/04 1.040 50,000 151 218,111.11 1.059 CID GECC 08/27/04 1.040 50,000 151 218,111.11 1.059 DISC NOTE FHLB 08/27/04 1.325 15,000 60 33,125.00 1.346 DISC NOTE FHLB 08/27/04 1.325 50,000 60 110,416.67 1.346 DISC NOTE FHLB 08/27/04 1.325 50,000 60 110,416.67 1.346 DISC NOTE FNMA 08/27/04 1.050 50,000 122 177,916.67 1.068 DISC NOTE FNMA 08/27/04 1.050 50,000 122 177,916.67 1.068 DISC NOTE FNMA 08/27/04 1.050 50,000 122 177,916.67 1.068 DISC NOTE FHLMC 08/27/04 1.050 50,000 122 177,916.67 1.068 DISC NOTE FHLMC 08/27/04 1.050 50,000 122 177,916.67 1.068 DISC NOTE FNMA 08/27/04 1.070 50,000 123 182,791.67 1.088 DISC NOTE FNMA 08/27/04 1.070 50,000 123 182,791.67 1.088 DISC NOTE FNMA 08/27/04 1.070 50,000 123 182,791.67 1.088 DISC NOTE FNMA 08/27/04 1.070 50,000 123 182,791.67 1.088 DISC NOTE FNMA 08/27/04 1.060 50,000 127 186,972.22 1.079 DISC NOTE FNMA 08/27/04 1.060 50,000 127 186,972.22 1.079 DISC NOTE FNMA 08/27/04 1.060 50,000 127 186,972.22 1.079 DISC NOTE FNMA 08/27/04 1.060 50,000 127 186,972.22 1.079 DISC NOTE FNMA 08/27/04 1.050 50,000 142 207,083.33 1.069 DISC NOTE FNMA 08/27/04 1.050 50,000 142 207,083.33 1.069 DISC NOTE FNMA 08/27/04 1.050 50,000 142 207,083.33 1.069 DISC NOTE FNMA 08/27/04 1.050 50,000 142 207,083.33 1.069 DISC NOTE FNMA 08/27/04 1.020 50,000 150 212,500.00 1.039 DISC NOTE FNMA 08/27/04 1.020 50,000 150 212,500.00 1.039 08/27/04 SALES c/ DISC NOTE FNMA 12/08/04 1.530 22,485 1 931.52 1.551 DISC NOTE FNMA 11/22/04 1.530 30,000 1 1,244.23 1.551 DISC NOTE FNMA 11/17/04 1.530 50,000 1 2,074.26 1.551 11 08/27/04 NO PURCHASES 08/30104 NO REDEMPTIONS 08/30/04 PURCHASES CID NCAT 08/31/04 1.520 45,000 CID NCAT 08/31/04 1.520 50,000 CID NCAT 08/31/04 1.520 50,000 CID NCAT 08/31/04 1.520 50,000 CID NCAT 08/31/04 1.520 50,000 CID GECC 09/01/04 1.520 5,000 CID GECC 09/01/04 1.520 50,000 CID GECC 09/01/04 1.520 50,000 CID GECC 09/01/04 1.520 50,000 CID GECC 09/01/04 1.520 50,000 CID MORG STAN 09/02/04 1.520 50,000 CID MORG STAN 09/02/04 1.520 50,000 08/31/04 REDEMPTIONS CD W/F 1.510% 08/31/04 1.510 30,000 11 13,841.67 1.531 CD W/F 1.510% 08/31/04 1.510 50,000 11 23,069.44 1.531 CD W/F 1.510% 08/31/04 1.510 50,000 11 23,069.44 1.531 CD W/F 1.510% 08/31/04 1.510 50,000 11 23,069.44 1.531 CD W/F 1.390% 08/31/04 1.390 50,000 34 65,638.89 1.409 CD W/F 1.390% 08/31/04 1.390 50,000 34 65,638.89 1.409 CD W/F 1.390% 08/31/04 1.390 50,000 34 65,638.89 1.409 CD W/F 1.390% 08/31/04 1.390 50,000 34 65,638.89 1.409 CID NCAT 08/31/04 1.520 45,000 1 1,900.00 1.541 CID NCAT 08/31/04 1.520 50,000 1 2,111.11 1.541 CID NCAT 08/31/04 1.520 50,000 1 2,111.11 1.541 CID NCAT 08/31/04 1.520 50,000 1 2,111.11 1.541 CID NCAT 08/31/04 1.520 50,000 1 2,111.11 1.541 CID DEERE 08/31/04 1.460 20,000 36 29,200.00 1.482 DISC NOTE FHLMC 08/31/04 1.270 50,000 68 119,944.44 1.291 08/31/04 NO PURCHASES 12 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. V Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 13 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE ALHAMBRA The Bank of East Asia (USA) 07/14/04 1.360 3,095,000.00 10/14/04 The Bank of East Asia (USA) 08/11/04 1.750 3,000,000.00 02/09/05 The Bank of East Asia (USA) 08/18/04 1.820 6,000,000.00 02/16/05 Omni Bank 06/02/04 1.110 6,000,000.00 09/03/04 Omni Bank 03/17/04' 1.050 2,000,000.00 09/15/04 Omni Bank 04/02/04 1.050 2,000,000.00 10/01/04 Omni Bank 08/13/04 1.490 2,000,000.00 11/12/04 Omni Bank 08/20/04 1.520 4,000,000.00 11/19/04 Omni Bank 05/27/04 1.450 2,000,000.00 11/23/04 Omni Bank 08/25/04 1,560 2,000,000.00 12/01/04 ARROYO GRANDE Mid -State Bank 03/12/04 1.040 5,000,000.00 09/09/04 Mid -State Bank 04/14/04 1.090 5,000,000.00 10/13/04 Mid -State Bank 05/19/04 1.380 5,000,000.00 11/17/04 Mid -State Bank 06/11/04 1.670 5,000,000.00 12/10/04 Mid -State Bank 07/15/04 1.740 5,000,000.00 01/13/05 Mid -State Bank 08/11/04 1.730 5,000,000.00 02/09/05 BREA Jackson Federal Bank 08/18/04 1.510 10,000,000,00 11/18/04 Pacific Western National Bank 08/04/04 1.080 4,000,000.00 02/02/05 CALABASAS First Bank of Beverly Hills, FSB 03/04/04 1.070 10,000,000.00 09/02/04 First Bank of Beverly Hills, FSB 05/06/04 1.230 10,000,000.00 11/04/04 First Bank of Beverly Hills, FSB 06/16/04 1.770 10,000,000.00 12/15/04 CAMARILLO First California Bank 03/24/04 1.060 6,000,000.00 09/22/04 First California Bank 06/09/04 1.570 2,000,000.00 12/03/04 First California Bank 06/04/04 1.500 2,000,000.00 12/03/04 First California Bank 07/28/04 1.810 6,000,000.00 01/26/05 CAMERON PARK Western Sierra National Bank 07/14/04 1.660 7,000,000.00 01/12/05 14 NAME CHATSWORTH Premier America Credit Union Premier America Credit Union Premier America Credit Union CHICO Tri Counties Bank CHULA VISTA North Island Federal Credit Union CITY OF INDUSTRY EverTrust Bank EverTrust Bank CONCORD Bank of the West Bank of the West Bank of the West Bank of the West DUBLIN Operating Engineers FCU Operating Engineers FCU Operating Engineers FCU EL CENTRO Valley Independent Bank Valley Independent Bank Valley Independent Bank EL SEGUNDO First Coastal Bank NA First Coastal Bank NA Xerox Federal Credit Union Xerox Federal Credit Union TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 06/23/04 1.320 10,000,000.00 09/22/04 07/21 /04 1.380 10,000,000.00 10/20/04 05/12/04 1.360 10,000,000.00 11 /10/04 06/18/04 1.370 20,000,000.00 09/16/04 04/09/04 0.980 5,000,000.00 10/08/04 06/10/04 1.320 6,000,000.00 09/10/04 07/29/04 1.520 6,000,000.00 10/28/04 06/18/04 1.370 82,000,000.00 09/16/04 07/09/04 1.360 134, 000, 000.00 10/08/04 07/30/04 1.510 176, 500, 000.00 10/29/04 08/20/04 1.520 242,000,000.00 11/19/04 04/07/04 0.970 5,000,000.00 10/06/04 06/11 /04 1.650 10,000,000.00 12/10/04 08/11/04 1.710 5,000,000.00 02/09/05 07/01/04 1.390 20,000,000.00 09/29/04 07/16/04 1.390 20,000,000.00 10/15/04 07/23/04 1.420 32,500,000.00 10/22/04 03/03/04 07/21 /04 03/04/04 03/10/04 15 1.060 2,000,000.00 09/01 /04 1.720 2,000,000.00 01/20/05 1.080 20,000,000.00 09/02/04 1.040 7,000,000.00 09/09/04 NAME EL SEGUNDO (continued Xerox Federal Credit Union FAIRFIELD Westamerica Bank Westamerica Bank Westamerica Bank FRESNO United Security Bank FULLERTON Fullerton Community Bank Fullerton Community Bank GOLETA Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank Pacific Capital Bank GRANADA HILLS First State Bank of California First State Bank of California HAWTHORNE Western Federal Credit Union IRVINE Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank Commercial Capital Bank TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 05/20/04 1.400 20,000,000.00 11/17/04 07/09/04 1.360 60,000,000.00 10/08/04 07/15/04 1.390 65,000,000.00 10/14/04 08/16/04 1.490 50,000,000.00 11/17/04 04/21/04 1.150 40,000,000.00 10/20/04 05/19/04 1.390 9,000,000.00 11/17/04 07/23/04 1.770 8,000,000.00 01/21/05 04/01/04 1.050 78,000,000.00 .10/01/04 06/09/04 1.560 85,000,000.00 12/08/04 08/13/04 1.750 11,000,000.00 02/11/05 08/13/04 1.750 61,000,000.00 02/11/05 03/19/04 1.030 2,000,000.00 09/17/04 04/22/04 1.170 3,000,000.00 10/21/04 07/23/04 1.420 30,000,000.00 10/22/04 06/16/04 1.360 10,000,000.00 09/15/04 07/01/04 1.340 60,000,000.00 09/29/04 07/08/04 1.310 10, 000, 000.00 10/14/04 04/15/04 1.090 10, 000, 000.00 10/14/04 07/14/04 1.320 35,000,000.00 10/14/04 07/07/04 1.300 50,000,000.00 10/14/04 07/29/04 1.560 10, 000, 000.00 11/17/04 r�: NAME IRVINE (continued TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT {$) DATE Commercial Capital Bank 08/05/04 1.540 15,000,000.00 11/17/04 Commercial Capital Bank 07/30/04 1.560 20,000,000.00 11/17/04 Commercial Capital Bank 08/18/04 1.470 45,000,000.00 11/17/04 Commercial Capital Bank 08/26/04 1.550 14,000,000.00 12/15/04 Commercial Capital Bank 08/19/04 1.590 15,000,000.00 12/15/04 LA JOLLA Silvergate Bank 03/12/04 1.060 5,000,000.00 09/10/04 Bank of Lodi 03/24/04 1.080 5,000,000.00 09/22/04 Bank of Lodi 06/17/04 1.760 5,000,000.00 12/16/04 Farmers & Merchant Bk Cen CA 06/23/04 1.320 25,000,000.00 09/22/04 Farmers & Merchant Bk Cen CA 04/08/04 1.080 10,000,000.00 10/07/04 Farmers & Merchant Bk Cen CA 06/23/04 1.720 25,000,000.00 12/22/04 LOS ANGELES Broadway Federal Savings Bank 03/12/04 1.050 3,000,000.00 09/10/04 Broadway Federal Savings Bank 07/09/04 1.680 2,500,000.00 01/07/05 Cathay Bank 03/03/04 1.050 17,000,000.00 09/01/04 Cathay Bank 03/10/04 1.030 30,000,000.00 09/09/04 Cathay Bank 04/08/04 1.100 38,000,000.00 10/07/04 Cathay Bank 05/12/04 1.370 25,000,000.00 11/10/04 Cathay Bank 08/18/04 1.540 15,000,000.00 11/18/04 Cedars Bank 03/12/04 1.050 4,500,000.00 09/10/04 Cedars Bank 06/23/04 1.320 5,000,000.00 09/22/04 Cedars Bank 07/07/04 1.320 5,000,000.00 10/06/04 Center Bank 03/17/04 1.050 40,000,000.00 09/15/04 Center Bank 04/08/04 1.080 10,000,000.00 10/07/04 Center Bank 06/23/04 1.720 5,000,000.00 12/22/04 Center Bank 07/21/04 1.710 5,000,000.00 01/20/05 CHB America Bank 06/02/04 1.110 2,000,000.00 09/01/04 CHB America Bank 03/05/04 1.030 2,000,000.00 09/01/04 CHB America Bank 03/31/04 1.050 3,000,000.00 09/29/04 CHB America Bank 07/15/04 1.390 4,300,000.00 10/14/04 CHB America Bank 08/20/04 1.780 4,000,000.00 02/18/05 Eastern International Bank 05/05/04 1.210 900,000.00 11/03/04 Eastern International Bank 06/10/04 1.600 1,000,000.00 12/09/04 Hanmi Bank 06/03/04 1.140 25,000,000.00 09/02/04 17 NAME LOS ANGELES (continued TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE Hanmi Bank 06/16/04 1.780 20,000,000.00 09/15/04 Hanmi Bank 06/17/04 1.390 25,000,000.00 09/15/04 Hanmi Bank 07/08/04 1.330 10,000,000.00 10/07/04 Hanmi Bank 07/16/04 1.380 25,000,000.00 10/15/04 Hanmi Bank 07/30/04 1.510 10,000,000.00 10/29/04 Hanmi Bank 08/05/04 1.540 25,000,000.00 11/04/04 Mellon First Business Bank 06/18/04 1.370 50,000,000.00 09/16/04 Mellon First Business Bank 07/09/04 1.360 50,000,000.00 10/08/04 Mirae Bank 04/16/04 1.160 4,000,000.00 10/15/04 Nara Bank, NA 06/11/04 1.320 10,000,000.00 09/10/04 Nara Bank, NA 04/08/04 1.080 5,000,000.00 10/07/04 Nara Bank, NA 07/22/04 1.400 15,000,000.00 10/21 /04 Nara Bank, NA 08/18/04 1.510 5,000,000.00 11/18/04 Nara Bank, NA 07/22/04 1.730 10,000,000.00 01/20/05 Nara Bank, NA 08/04/04 1.800 10,000,000.00 02/02/05 Nara Bank, NA 08/12/04 1.760 5,000,000.00 02/10/05 One United Bank 06/09/04 1.290 10,000,000.00 09/08/04 One United Bank 07/14/04 1.350 5,000,000.00 10/13/04 Pacific Union Bank 03/04/04 1.070 20,000,000.00 09/02/04 Preferred Bank 03/19/04 1.060 31,000,000.00 09/17/04 Preferred Bank 08/06/04 1.530 4,000,000.00 11/05/04 Saehan Bank 08/20/04 1.500 2,000,000.00 11/19/04 State Bank of India (California) 07/07/04 1.350 3,000,000.00 10/06/04 State Bank of India (California) 05/20/04 1.440 2,000,000.00 11/18/04 Wilshire State Bank 03/05/04 1.070 3,000,000.00 09/03/04 Wilshire State Bank 05/28/04 1.110 12,000,000.00 09/03/04 Wilshire State Bank 03/19/04 1.050 8,000,000.00 09/17/04 Wilshire State Bank 04/09/04 1.080 7,000,000.00 10/08/04 Wilshire State Bank 06/17/04 1.480 12,000,000.00 10/08/04 Wilshire State Bank 08/12/04 1.540 8,000,000.00 11/10/04 Wilshire State Bank 08/25/04 1.560 7,000,000.00 11/30/04 Wilshire State Bank 07/30/04 1.060 8,000,000.00 11/30/04 MERCED County Bank 06/02/04 1.120 5,000,000.00 09/03/04 County Bank 03/10/04 1.040 10,000,000.00 09/09/04 County Bank 07/16/04 1.390 10,000,000.00 10/15/04 18 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE MONTEREY PARK Trust Bank FSB 07/01 /04 1.360 2,000,000.00 10/01/04 Trust Bank FSB 04/01/04 1.050 3,000,000.00 10/01/04 Trust Bank FSB 07/07/04 1.330 3,000,000.00 10/06/04 NEWPORT BEACH Orange County Business Bank 06/23/04 1.330 4,000,000.00 09/22/04 NORTH HIGHLANDS Safe Credit Union 07/16/04 1.380 5,000,000.00 10/15/04 Safe Credit Union 08/13/04 1.490 20,000,000.00 11/12/04 OAKDALE Oak Valley Community Bank 03/18/04 1.060 3,500,000.00 09/16/04 Oak Valley Community Bank 07/16/04 1.380 2,500,000.00 10/15/04 OAKLAND Metropolitian Bank 03/24/04 1.050 2,000,000.00 09/22/04 Metropolitian Bank 06/03/04 1.450 500;000.00 12/02/04 Metropolitian Bank 06/03/04 1.450 1,000,000.00 12/02/04 Metropolitian Bank 07/23/04 1.760 1,000,000.00 01/21/05 Metropolitian Bank 07/29/04 1.830 1,500,000.00 01/27/05 Metropolitian Bank 08/26/04 1.860 1,000,000.00 02/24/05 ONTARIO Citizens Business Bank 06/04/04 1.220 25,000,000.00 09/03/04 Citizens Business Bank 03/24/04 1.050 30,000,000.00 09/22/04 Citizens Business Bank 04/02/04 1.050 25,000,000.00 10/01/04 Citizens Business Bank 08/06/04 1.530 30,000,000.00 11/05/04 Citizens Business Bank 05/20/04 1.420 30,000,000.00 11/18/04 PALO ALTO Bank of Petaluma 03/11/04 1.050 12,000,000.00 09/09/04 Cupertino National Bank 03/11/04 1.050 10,000,000.00 09/09/04 Mid -Peninsula Bank 03/11/04 1.040 10,000,000.00 09/09/04 Mid -Peninsula Bank 07/14/04 1.680 15,000,000.00 01/12/05 Mid -Peninsula Bank 07/29/04 1.830 95,000,000.00 01/27/05 Mid -Peninsula Bank 08/18/04 1.790 30,000,000.00 02/16/05 19 NAME PALO ALTO (continued Mid -Peninsula Bank Mid -Peninsula Bank Mt. Diablo National Bank PALOS VERDES ESTATES Malaga Bank Malaga Bank Malaga Bank Malaga Bank PASADENA Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank Community Bank Wescom Credit Union Wescom Credit Union Wescom Credit Union Wescom Credit Union Wescom Credit Union PLACERVILLE El Dorado Savings Bank El Dorado Savings Bank PLEASANTON Valley Community Bank POMONA PFF Bank and Trust PFF Bank and Trust PFF Bank and Trust PFF Bank and Trust TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT {$) DATE 08/19/04 1.800 63,500,000.00 02/16/05 08/20/04 1.780 49,000,000.00 02/18/05 03/11/04 1.050 10,000,000.00 09/09/04 03/05/04 1.050 4,000,000.00 09/03/04 05/13/04 1.370 7,000,000.00 11/10/04 06/16/04 1.750 9,000,000.00 12/15/04 08/20/04 1.780 10,000,000.00 02/18/05 03/17/04 1.050 10,000,000.00 09/15/04 04/08/04 1.080 10, 000, 000.00 10/07/04 04/ 14/04 1.090 15, 000, 000.00 10/ 13/04 05/06/04 1.230 15,000,000.00 11 /04/04 06/ 16/04 1.770 10, 000, 000.00 12/ 15/04 07/09/04 1.680 10,000,000.00 01/07/05 08/04/04 1.800 25,000,000.00 02/02/05 03/24/04 1.070 25,000,000.00 09/22/04 07/14/04 1.350 25,000,000.00 10/13/04 08/18/04 1.520 10,000,000.00 11 /18/04 08/18/04 1.520 25,000,000.00 11/18/04 07/29/04 1.840 25,000,000.00 01/27/05 04/30/04 1.560 5,000,000.00 04/29/05 06/04/04 1.920 20,000,000.00 06/03/05 03/19/04 07/01 /04 06/09/04 08/27/04 08/30/04 20 1.070 6,000,000.00 09/17/04 1.610 20,000,000.00 1.560 20,000,000.00 1.830 8,000,000.00 1.830 12,000,000.00 11 /04/04 12/08/04 02/25/05 02/25/05 NAME 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 La Jolla Bank, FSB La Jolla Bank, FSB REDDING North Valley Bank REDWOOD CITY Provident Central Credit Union Provident Central Credit Union ROCKLIN Five Star Bank Five Star Bank q omm 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 {$) DATE 04/22/04 1.170 10,000,000.00 10/21 /04 06/03/04 1.110 10,000,000.00 09/02/04 03/05/04 1.050 10,000,000.00 09/02/04 06/24/04 1.350 5,000,000.00 09/23/04 08/04/04 1.490 25,000,000.00 11/03/04 08/13/04 1.470 15, 000,000.00 11 /12/04 06/17/04 1.720 10, 000,000.00 12/16/04 08/18/04 1.770 25,000,000.00 02/16/05 06/11/04 1.670 3,000,000.00 12/10/04 04/29/04 1.210 20,000,000.00 10/28/04 06/03/04 1.430 20,000,000.00 12/02/04 03/31/04 1.030 2,000,000.00 09/29/04 07/28/04 1.780 2,000,000.00 01/26/05 09/12/03 1.290 10,000,000.00 09/10/04 10/ 15/03 1.260 10, 000, 000.00 10/ 15/04 10/31 /03 1.300 10,000,000.00 10/29/04 11 /07/03 1.380 10,000,000.00 11 /05/04 03/03/04 1.260 10,000,000.00 03/03/05 04/01/04 1.260 10,000,000.00 04/01/05 04/21/04 1.450 10,000,000.00 04/21/05 06/09/04 1.960 10,000,000.00 06/09/05 07/08/04 2.070 10,000,000.00 07/08/05 08/04/04 2.180 10,000,000.00 08/04/05 03/25/04 1.050 25,000,000.00 09/23/04 21 NAME SACRAMENTO TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 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 American River Bank 04/07/04 0.970 1,500,000.00 10/06/04 American River Bank 06/18/04 1.720 1,000,000.00 12/16/04 American River Bank 06/17/04 1.720 1,250,000.00 12/16/04 American River Bank 07/09/04 1.660 1,000,000.00 01/07/05 American River Bank 07/29/04 1.810 1,500,000.00 01/27/05 American River Bank 08/27/04 1.840 2,000,000.00 02/25/05 Bank of Sacramento 03/03/04 1.060 2,000,000.00 09/01/04 Bank of Sacramento 08/11/04 1.520 1,500,000.00 11/10/04 Bank of Sacramento 06/18/04 1.740 2,000,000.00 12/17/04 Merchants National Bank 04/14/04 1.090 2,000,000.00 10/13/04 Merchants National Bank 07/21/04 1.710 2,000,000.00 01/02/05 River City Bank 04/07/04 1.000 2,000,000.00 10/06/04 River City Bank 07/30/04 1.850 3,000,000.00 01/28/05 River City Bank 08/25/04 1.820 2,000,000.00 02/24/05 U.S. Bank 07/08/04 1.650 100,000,000.00 01/06/05 U.S. Bank 08/04/04 1.800 25,000,000.00 02/02/05 U.S. Bank 08/11/04 1.740 50,000,000.00 02/09/05 U.S. Bank 08/11/04 1.740 50,000,000.00 02/09/05 U.S. Bank 08/20/04 1.800 50,000,000.00 02/18/05 U.S. Bank 08/20/04 1.800 50,000,000.00 02/18/05 Union Bank of California 06/18/04 1.370 150,000,000.00 09/16/04 Union Bank of California 07/16/04 1.380 175,000,000.00 10/15/04 Union Bank of California 08/05/04 1.540 150,000,000.00 11/04/04 SAN DIEGO First Future Credit Union 06/02/04 1.110 15,000,000.00 09/03/04 First Future Credit Union 06/16/04 1.380 8,000,000.00 09/15/04 First Future Credit Union 08/27/04 1.830 5,000,000.00 02/25/05 First Future Credit Union 08/27/04 1.830 10,000,000.00 02/25/05 First United Bank 04/15/04 1.120 2,000,000.00 10/14/04 First United Bank 08/13/04 1.770 1,000,000.00 02/11/05 Mission Federal Credit Union 03/03/04 1.060 10,000,000.00 09/01/04 Mission Federal Credit Union 07/15/04 1.750 10,000,000.00 01/13/05 Neighborhood National Bank 08/20/04 1.710 2,000,000.00 01/21/05 Neighborhood National Bank 08/04/04 1.820 2,000,000.00 02/02/05 22 TIME DEPOSITS DEPOSIT PAR MATURITY NAME DATE YIELD AMOUNT ($) DATE SAN FRANCISCO America California Bank 03/05/04 1.080 2,000,000.00 09/03/04 America California Bank 07/08/04 1.650 4,000,000.00 01/06/05 Citibank (West) FSB 07/08/04 1.700 150,000,000.00 01/06/05 Citibank (West) FSB 07/15/04 1.750 100,000,000.00 01/13/05 Citibank (West) FSB 07/21/04 1.750 100,000,000.00 01/20/05 Citibank (West) FSB 07/28/04 1.800 25,000,000.00 01/26/05 Citibank (West) FSB 07/15/04 1.750 25,000,000.00 01/26/05 Oceanic Bank 09/12/03 1.260 4,000,000.00 09/10/04 Trans Pacific National Bank 03/25/04 1.060 1,000,000.00 09/23/04 Trans Pacific National Bank 06/23/04 1.730 1,000,000.00 12/22/04 Trans Pacific National Bank 08/05/04 1.830 1,000,000.00 02/03/05 United Commercial Bank 03/03/04 1.060 50,000,000.00 09/01/04 United Commercial Bank 06/04/04 1.230 25,000,000.00 09/03/04 United Commercial Bank 06/11/04 1.330 25,000,000.00 09/10/04 United Commercial Bank 03/19/04 1.060 65,000,000.00 09/17/04 United Commercial Bank 04/08/04 1.090 40,000,000.00 10/07/04 United Commercial Bank 07/09/04 1.370 55,000,000.00 10/08/04 United Commercial Bank 07/14/04 1.350 50,000,000.00 10/14/04 United Commercial Bank 07/28/04 1.470 40,000,000.00 10/27/04 United Commercial Bank 08/25/04 1.570 20,000,000.00 11/24/04 SANJOSE Comerica Bank of California 07/01/04 1.370 25,000,000.00 10/01/04 Heritage Bank of Commerce 08/11/04 1.740 4,000,000.00 02/09/05 Meriwest Credit Union 03/17/04 1.080 5,000,000.00 09/15/04 Medwest Credit Union 04/14/04 1.100 10,000,000.00 10/13/04 Meriwest Credit Union 07/21/04 1.690 5,000,000.00 01/20/05 Santa Clara Co. Fed. C.U. 08/06/04 1.560 10,000,000.00 11/05/04 Santa Clara Co. Fed. C.U. 05/07/04 1.230 5,000,000.00 11/05/04 SAN LUIS OBISPO 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 First Bank Of San Luis Obispo 06/04/04 1.500 4,500,000.00 12/03/04 First Bank Of San Luis Obispo 08/11/04 1.740 6,000,000.00 02/09/05 Mission Community Bank 03/04/04 1.080 1,000,000.00 09/02/04 Mission Community Bank 04/07/04 0.990 2,500,000.00 10/06/04 Mission Community Bank 04/28/04 1.220 2,500,000.00 10/27/04 Mission Community Bank 06/10/04 1.600 1,000,000.00 12/09/04 San Luis Trust Bank 04/21 /04 1.110 1,700,000.00 10/20/04 23 NAME SAN MARINO East West Federal Bank East West Federal Bank East West Federal Bank East West Federal Bank East West Federal Bank SANTA ROSA National Bank of the Redwoods National Bank of the Redwoods National Bank of the Redwoods SANTA MARIA Hacienda Bank SONORA Central California Bank STOCKTON Pacific State Bank Pacific State Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Union Safe Deposit Bank Washington Mutual Bank Washington Mutual Bank Washington Mutual Bank TORRANCE China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) China Trust Bank (USA) TIME DEPOSITS DEPOSIT PAR MATURITY DATE YIELD AMOUNT ($) DATE 03/12/04 1.050 35,000,000.00 09/10/04 06/10/04 1.320 50,000,000.00 09/10/04 07/09/04 1.360 42,000,000.00 10/08/04 08/06/04 1.530 35,000,000.00 11/05/04 08/18/04 1.530 38,000,000.00 11/18/04 04/29/04 1.210 5,000,000.00 10/28/04 07/21/04 1.710 10,000,000.00 01/20/05 08/11/04 1.730 5,000,000.00 02/09/05 06/09/04 1.270 1,000,000.00 09/08/04 03/26/04 1.040 5,000,000.00 09/24/04 04/07/04 0.990 1,000,000.00 10/06/04 07/08/04 1.630 1,000,000.00 01/06/05 06/03/04 1.140 15,000,000.00 09/02/04 06/10/04 1.330 10,000,000.00 09/10/04 07/16/04 1.390 10, 000, 000.00 10/15/04 07/23/04 1.420 15, 000, 000.00 10/22/04 08/05/04 1.550 15, 000, 000.00 11 /04/04 08/13/04 1.500 15, 000,000.00 11 /12/04 06/16/04 1,780 45,000,000.00 12/15/04 07/21/04 1.720 75,000,000.00 01/20/05 08/20/04 1.790 60,000,000.00 02/18/05 06/11/04 1.330 35,000,000.00 09/10/04 07/16/04 1.390 40,000,000.00 10/15/04 07/23/04 1.420 30,000,000.00 10/22/04 08/13/04 1.500 20,000,000.00 11/12/04 24 TIME DEPOSITS DEPOSIT NAME DATE TRACY Service 1st Bank 06/17/04 TUSTIN Sunwest Bank 06/09/04 Sunwest Bank 07/16/04 Sunwest Bank 08/12/04 VACAVILLE Travis Credit Union 06/02/04 WHITTIER Quaker City Bank 03/31 /04 Quaker City Bank 06/04/04 Quaker City Bank 07/14/04 TOTAL TIME DEPOSITS AUGUST 2004 25 PAR MATURITY YIELD AMOUNT ($) DATE 1.750 2,000,000.00 12/16/04 1.240 1,000,000.00 09/08/04 1.380 6,000,000.00 10/15/04 1.540 7,800,000.00 11/10/04 1.410 40,000,000.00 12/01/04 1.050 16,000,000.00 09/29/04 1.490 25,000,000.00 12/03/04 1.680 24,000,000.00 01/12/05 6,136,795,000.00 BANK DEMAND DEPOSITS August 2004 ($ In thousands) DAILY BALANCES DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 923,749 $ 2,493,976 2 1,610,905 2,024,182 3 861,153 1,908,638 4 852,852 2,091,607 5 1,032,685 2,022,376 6 960,290 2,447,550 7 960,290 2,447,550 8 960,290 2,447,550 9 986,643 2,237,892 10 1,057,963 2,141,973 11 1,060,104 1,978,818 12 847,006 2,091,685 13 1,103,474 2,150,680 14 1,103,474 2,160,680 15 1,103,474 2,150,680 16 1,186,658 1,907,632 17 922,603 1,947,412 18 1,237,613 2,239,171 19 1,218,456 2,525,070 20 1,069,321 2,276,967 21 1,069,321 2,276,967 22 1,069,321 2,276,967 23 1,102,422 2,133,021 24 1,051,670 2,296,817 25 986,979 2,347,756 26 947,088 2,487,137 27 839,987 2,311,579 28 839,987 2,311,679 29 839,987 2,311,579 30 956,807 2,137,015 31 992,261 1,775,973 AVERAGE DOLLAR DAYS $ 1,024,349 al The prescribed bank balance for August was $949,371. This consisted of $817,056 in compensating balances for services, balances for uncollected funds of $135,626 and a deduction of $3,311 for August delayed deposit credit 26 DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1662 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on August 18, 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 $ 817,056,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: From To Transactions ( 1) 08/16/04 08/20/04 $ 563,550,000 (2) 08/23/04 08/27/04 $ 86,350,000 (3) 08/30/04 09/03/04 $ (987,550,000) (4) 09/06/04 09/10/04 $ 295,400,000 (5) 09/13/04 09/17/04 $ 3,367,600,000 (6) 09/20/04 09/24/04 $ 2,720,200,000 (7) 09/27/04 10/01/04 $ (3,516,350,000) (8) 10/04/04 10/08/04 $ 6,253,400,000 (9) 10/11 /04 10/15/04 $ 1,216,100,000 (10) 10/18/04 10/22/04 $ 1,266,500,000 Time Deposits in Various Financial Institutions In Securities (sections 16503a Estimated (section 16430)* and 16602)* Total $ 45,472,755,000 $ 6,011,795,000 $ 51,484,550,000 $ 45,559,105,000 $ 6,011,795,000 $ 51,570,900,000 $ 44,571,555,000 $ 6,011,795,000 $ 50,583,350,000 $ 44,866,955,000 $ 6,011,795,000 $ 50,878,750,000 $ 48,234,555,000 $ 6,011,795,000 $ 54,246,350,000 $ 50,954,755,000 $ 6,011,795,000 $ 56,966,550,000 $ 47,438,405,000 $ 6,011,795,000 $ 53,450,200,000 $ 53,691,805,000 $ 6,011,795,000 $ 59,703,600,000 $ 54,907,905,000 $ 6,011,795,000 $ 60,919,700,000 $ 56,174,405,000 $ 6,011,795,000 $ 62,186,200,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 817,056,000. Dated: August 18, 2004 * Government Code POOLED MONEY INVESTMENT BOARD: Signatures on file at SCO and STO Chairperson Member Member INVESTMENT ADVISORY BOARD Meeting Date: November 10, 2004 TITLE: LAIF Conference Materials BACKGROUND: Correspondence & Written Material Item C Attached please find materials handed out at the LAIF Conference for Boards review. RECOMMENDATION: Information item only. ohn M. Falcon r, Finance Director 2004 LOCAL AGENCY INVESTMENT FUND CONFERENCE AGENDA OCTOBER 2792004 8:30 a.m. Registration (Activity Building, 2"d Floor) 9:00 a.m. Welcome and Introductions .(Room 202) Pledge of Allegiance Eileen L. Park, LAIF Administrator State Treasurer's Office, Investment Division Introduction of Local Investment Advisory Board Russ Branson Patricia Elliott Byron Scordelis Leslie Wells Introduction of LIAB Executive Secretary Theodore H. Eliopoulos and State Treasurer's Office staff 9:15 a.m. Interest Rates on the Move —What Does This Mean for the Economy and for Your Portfolio? (Room 202) Economist - William Dudley, Goldman, Sachs and Co. 1.0:00 a.m. Break 10:15 a.m. An Overview of LAIF Operations. and PMIA Goals and Objectives (Room 202) Panel Members: Daniel Dowell, Director of Investments, State Treasurer's Office, Investment Division Christine Solich, Asst. Director of Investments, State Treasurer's Office, Investment Division 11:15 a.m. . An Overview of Asset Backed Commercial Paper (Room 202) Panel Members: William Dowell, Treasury Program Manager State Treasurer's Office, Investment Division Deborah R. Seife, Managing Director FitchRatings Jean -Luc Sinniger, Director Citigroup Global Markets, Inc. 12:15 p.m. Lunch (Room 203) Luncheon Speaker. • State Treasurer Phil Angelides 1:45 p.m. An Update on the.State Budget and its Impact to Local Agencies (Room 202) Marianne O'Malley, Legislative Analyst's Office 2:45 p.m. Local Government Finance Legislation Roundtable (Room 202) Panel Members: Vince Amado, Treasurer City of Rocklin & CMTA Legislative Chair Frank Moore, Senior Research Specialist California Debt & Investment Advisory Commission 2:45 p.m. LAIF Roundtable — Technical Assistance Panel Members: Daniel Dowell, Director of Investments William Dowell, Treasury. Program Manager Conniea Kim, Treasury Program Officer, LAIF Kim Lee, Treasury Program Officer, LAIF Christine Solich, Asst. Director of Investments Doug Spittler, Treasury Program Manager Jeff Wurm, Treasury Program Officer 3:15 p.m. Conference Adjournment and Evaluation • The US Economic Outlook: A .Bumpy Road Ahead? October 2004 Bill Dudley Chief US Economist Fl� Main Points 1 A Moderate Growth Pace • Corporate Investment Rises Rapidly • Labor. Market Picks Up, Sustaining Income Growth ■ But Other Factors Point to Weaker Household Spending 2 Core Inflation to Drift Higher • Unit Labor Costs to Rise as Productivity Growth Slows • High Profit Margins Provide Some Protection 3 fed Tightening At a Measured Pace • Measured Means 25 BP a Meeting ■ Worsening Growth/inflation Tradeoff Forces the Fed to Keep Going 4 Bond Market Rally To End Soon • Secular Bull Market Is Over • But Steep Yield Curve Provides Some Protection F2 1 Key Numbers in the U.S. Business Outlook 0402 0403E 04614E 05Q1 E 2004E 2005E Real GDP (a) 3.3 % 4.5 % 4.0 % 2.0 % 4.5 % 3.1 % Personal Consumption (a) 1.6 4.7 2.5 2.0 3.6 2.7 Business Fixed Investment (a) 12.4 11.0 16.0 7.5 10.4 10.4 Unemployment rate 5.6 5.4 5.3 5.2 5.5 5.2 Consumer price index (b) 2.8 2.7 3.4 3.2 2.7 2.7 After-tax adjusted profits (b) 18.5 12.5 2.5 -2.5 15.5 -5.0 Current Account Balance (c) -5.7 -6.8 -6.0 -6.1 -6.7 -6.1 Federal funds rate (d) 1.03 1.75 2.26 2.75 2.25 3.50 10-year Treasury yield (d) 4.73 4.25 4.50 4.75 4.50 5.00 Dollar/Euro (d) 1.21 1.27 1.32 1.32 1.32 1.32 Yen/Dollar (d) 109 105 98 98 98 98 (a) Sequential percent change, annualized. (b) Year -on -year percent change. (c) Percent of GDP. (d) End month of period. F3] Percent of GDP 12 IME 9 6 3 0 -9 Private Sector Balance Adjustment Incomplete Percent of GDP I [ 12 9 1"M wd so I W" W&IN Income -Spending, -Sector ME 10 62 66 70 74 78 82 86 90 94 98 02 [m 3 0 -9 El Firms Are in Great Financial Shape ofMID PW=tOfC" 12 12 10. e. 6. 4- 2 0 s �s � � ♦ ' pis. .t r �� i f Capex Incl. Inventories ••- Less: Cash Flow Equals: Financing Go 606264666870T274767880828486889092949698000204 0 Capital Spending is Recovering index Peroent change, year ago 2 1 0 -1 -2 74 76 78 80 82 84 86 88 90 92 94 95 93 00 02 U4 25 20 15 10 5 0 -10 -15 A Different Starting Point for Households Percent of GDP Percent ofGDP 4 2 t1l Household Income Less Spending 92 94 96 98 00 02 0 4 2 0 F7] Consumer Spending Share Close to All -Time High Percent of GDP Percent of GDP 72 70 68 66 64 62 60 60 64 68 72 76 80 84 88 92 96 00 04 72 70 68 66 64 62 60 a stage paw 3- 2 1 0 -1 Tax Stimulus Ending Percentagepoints 4 Contribution of Personal Tax Changes to Year -on -Year Real Disposable Income Growth: .as. Estiii�ated* { 80 82 84 86 .,,a 90 92 94 a 98 00 02 04 * Four -quarter moving average. F9-j Refinancing Boom Fizzling Out Inciax,1990=100 Binions of dollars 10000 700 — Mortgage Refl Appl, 4-Wk Mov Avg (left) ® Mortgage Equity Withdrawal* (right) 600 8000 500 6000 400 4000 2000 0 -2000 91 92 N Now " 98 99 00 Ulm cry * All equity extracted from existing homes. 300 200 100 0 F,o]Inventory/Sales Ratio Is "Low"... Ratio 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25 Inventory/Sales Ratio, Manufacturing and Trade 93 94 95 96 97 98 99 00 01 02 03 1 Ratio 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25 F1-1 I ... But To Add to GDP Growth Inventory Change Must Get Larger Billions of 2000 dollars Billions of 2000 dollars 11000 10876 10750 10625 IV 1 11 111 2003 2004 400 300 200 100 0 F-12 Trade Drag Persists Despite Dollar Decline wax,12MG12M =100 -- Pment of GDP 140 130 120 110 100 90 80 0 4 -2 -4 -6 80 82 84 86 88 90 92 94 96 -98 00 02 04 13 Core Inflation Picks Up Perc�snt Percent 5. 5 Core Inflation, Annualized Change 4 ----• CPI, 34onth 4 -- CP1,124*xM _. PCE. 3-Month 3 3 PCE. 12-Month ; '� t i r t t tr 0 tt 0 e 1 J M M J S N J M M J S N J M M J S N J M M J S 2001 2002 2003 2004 F�41 Inflationary Expectations Mostly Stable Percent Percent &0 2.5 2.0 1.5 1.0 ---11PS 10-Year Breakeven inflation* U of Mich 5-Year Median Inflation Expectations 2000 2001 2002 2003 2004 * Spread between 10-year TIPS' yield and nominal treasury yield. 3.5 3.0 2.5 2.0 1.5 1.0 Eil A Broad -Based Rebound in Input Prices Peroent change, year ago Percent change, year ago 60 40 20 0 20 -40 -60 3 92 94 96 98 00 02 C 60 40 20 0 -20 -40 -60 Fj-e - But Higher Input Costs Only Briefly Boost Core Inflation oao a3o 0.20 0.10 0.00 -0.10 1 2 3_ 4 5' 6 7 a 9 10 '11 12 * Using a VAR made with a 1980 to 2003 sample period. 0ao 0.20 0.20 0.10 0.00 -0.10 17 Profit Share Has Surged Percent of GDP Percent of GDP 8 7 6- 5 4 �l 50 54 58 62 N 70 74 78 a2 w w w w M a 7 5 4 3 Fj-a A Cyclical Productivity Slowdown Two-year annualized change Two-year annualized change 6 6 4- 3 0. Nonfarm Labor Productivity 4 .0 -2 -2 50 54 58 62 66 70 74 78 82 86 90 94 98 02 19 Causing Unit Labor Cost Trend, To Turn Sharply Higher Percent change, year ago Percent change, year ago 6 4 2 0 -2 -4 D 92 94 96 98 00 02 04 6 4 2 0 -2 -4 1 Why Productivity Matters For Inflation ProduCtivlty nil C.oalpensation Growth 5ei6 •"1 \ s9c nnumoa PKWW&Jft .196 Trend s 3y6 showica,Unk Real ,^Growth and Unempioytnent >ude . -------------------------------------------------------- Assumed Productivity Trend =1.5% NAIRU with NAIRU with 3% Prod Trend 1.5% Prod Trend 4% 6% Unemployment Rate 6�0 F211No Soft Landings from Below Point By Which Unemployment Trdugh Rats Had Risen Business Cycle Recession Rats Trough Role 0.3% or.More Outcome eegan Jul 1948 3.6 Jan 1949 Recession Nov 1948 Jul 1953 2.5 Oct 1953 Recession Jul 1953 Apr 107 &S Jul 1957 Recession Aug 1957 Jul 1959 5.1 Oct 1959 Recession Apr 1960 May 1969 3.4 Feb 1970 Recession Dec 1969 Nov 1973 4.7 Mar 1974 Recession Nov 1973 Jul 1979 5.7 Jan 1990 Recession Jan 1900 Apr 1901 7.3 Nov 1901 Recession Jul 1981 May 1909 5.1 Sep 1990 Recession Jul 1990 Dec 2000 3.9 Mar 2001 Recession Mar 2001 Now All entries and calculation based on threes -month trailing averages. Source: Department of Labor. National Bureau of Economic Research. 7% 0 Broad Financial Conditions Point To Slower Growth Index, 1987-1995=100 Index,1987-1995=100 98.0 97.0 96.0 95.0 Goldman Sachs Financial Conditions Index T Tighter y Easier JAN MAY SEP JAN MAY SEP JAN MAY SEP JAN MAY SEP 2001 2002 2003 2004 F 23 Tighter Financial Conditions Hurt Growth Effect on Sector Growth Rates: 1 Percent Increase in Interest Rates Year 1 Year 2 Year 3 Consumer Durable Goods -1.7% 0.0% 0.4% Housing 4.0 -2.0 1.1 capital Equipment -1.3 -2.8 -0.7 20% Decrease In Stock Market Wealth Consumer Durable Goods -0.9 -0.4 0.2 Other -0.2 -0.2 -0.1 Housing -2.4 -1.1 0.6 6 Percent Appreciation of the Dollar Exports -1.7 -3.1 -0.7 Imports 1.1 2.4 0.3 • Partial equilibrium response, holding other factors constant. Adapted from "Aggregate Disturbances, Monetary Policy, and the Macroeconomy: The FRBAUS Perspective," Federal Reserve Bulletin, January 1999, Table 1, page S. 98.0 97.0 96.0 95.0 94.0 s F The Secular Bond Bull Market Has Ended Percew Perms 1s 14 12 8 s 4 7 0 Q The Long -Term Budget Outlook — No Lasting Improvement Pwc" Of GDP S 2 1 0 4 2 -4 1s 14 12 10 s s 4 2 0 c e. Actual 1 Projected 2 0 1 OMB Estlnvft -1 i .�•'��„�......� CBO Baseline 2 .3 l GS Forecast -4 -5 00 01 02 03 04 05 05 07 OS— 08 lv 11 7Z 14 In Fiscal Year Q The Yield Curve Discounts Lots of Bad News Basis points 400 300 200 100 0 -100 -200 Basis points --------------------Al-----------+2 Std-Dev - - ------- -- Tw- +1 - stq! Pq-V" I V1 - A ka Averaae I 1953-2003 1 O-Year Treasury Yield Less Federal Funds Rate 83 85 87 89 91 93 95 97 99 01 03 * Excluding high -inflation 1973-1982 period. 02W4 The Goldner Sale mow. Inc. a rV fs re. v ThismolwW should rat be oonstrwd N an otlw io esn or its solbnaOM d rr oMw b buy any Nanny h any 3otion where woh an onw or .otiafsbn wawa be In.o.l. W w.lid solbitinp soy salon based on the ntrwW n is for lie ganrel W d cnerts d The c3dd„an Sachs (croup. Inc. It does not corstitrrte a pereorW noommerudstion or aka hb account tle particular Invasinwf objecbna, financial situations. or nesde d Ordvidid clients. Odors acting on any adrioa or noommwtdalbn in Ns. rnstwW, clients should consider when_ it is suitable for their particular dmunelwroea and it necessary, seek poteoional adults. TM pubs and vaire d lie itvesarerfs nM•md b h rule meurfel and lie boom• tram tMm may go down as wall N and Investors may realize bases; an any investments. Peat pwlpmerna• is not a guide to halve peAomwoa Future returns we not qulso nt ed, and a lose of octal capital may occur The Goldeenn Sachs &, Inc. does not p wide tax advice to b dw ts, and all hvdere ere strongly advised b aarnsull with ifrelr Wr advisers regaAffrrg any potntiel hvestrnerf. Cert•In trwuNdbn — hdurdng those hvdvirp futures, option, and dhw derMYMes N well N non mVelmordVrads Noukies — give rise to substantial risk and are and suitable for all nvestors. This report is based on public htomrtbn that we- ruble, but we do not iqx w OWN is aocurat• or aonodo wW n should not ba relied on N such. Opinion opvmmd we our current ophias as of Ow dale appowft on We material only. W andsavor to update on a reasonable basis the Information discuesed in this materiel, but rep�/a�wy oorrpnrtow or other mown may proven our us hom dohg so. We and oaffiliates, dhows, directors, and a pbokrd yess, erhr g equity uges.- wwnl'fran tin• b tine have W or'iwW posltbn In, d as p I IF - in, and buy or sell the esaritles er derhefiw. (hdudng option and wartarts) tlneneot d bn.d hank. For pupo.N a afaathg whelh.r 7h. t:�oldnen Soda Chap, Inc. bmnstilaity own or oantroa, ndudng heaving tM r rt b vob for dYeaws, 1% d more d a daN d tM common equity saauity d the etbj•d issuer d • ressarefn sport. Tle Ooldrnan Sachs 13roup, Ise. hdtWes sit dwhelies that, by dnelr terms, pier a right b aoquin ulna common equity •eaxily within !0 dsye thrar�r tle ocrnverabn er exeroae d a wanwnL opliorti er ttpnm► rfplt but does lid agPegste aocouats nnwnegod by Qoldnnen Seale Mast Mwegwerrt No Pw d the rllelertel rimy be p) ogried, Wnd�od. er duupitaelwl h soy forrrr by any moans a (R) redistrtbrt•d witlout Tlns Qoldren Ssde l3roup, Ino.'e prior written oornssnt. This mtoid is distributed in So United Stdo by Goldman, Sails t Co.. In HwV Kong by Goldman Suds (Asa) LLC., in Korea by Goldman Sachs (Ale) LLC.. Seoul Brwoh, h Japan by C> oldnnn Sachs (Japan) Ud. in Autralia by t3oldrnwt Sachs JMNwe Ply Ltd (ABN 21006 707 h New ZeslwW by iNdnen Sack JBWere Ltd. and In Sirpapere by Ooldnan Bdre (Si�pepor.) Pta. The met has bean issued by TM Cioldruan 8sde Group. Inc. enWror one d its sllYietes erd hse bean appowd for IM purposes d �adbn 21 d 1M F = Ssrvbse and fi= Aa 2000 by t3obblyydnsn Beds Inl rnatiorsl whfah a�et•d by tls FriaraW Swvbes Autltority. in oonrsaion with its datdbttion in the UNud Sachs International and No non -US theUre ell nit pwmittsd under aPP a avr. hew aced on uW 1Me reserahh. iA tlrd it reliss toMwws, prior to or rI.N� to ifs a doom• fwd Yw Mmwrl in adwdNbrr hwebbre h eiasMash se offed on such as AD less, t e � rhwe wbh awn Nkm wmd by for•iQr aurwncias sMdlwy «sane auereroy risk In addition. options cutler nlak and are not sullaba for alliwselas. Plus• ensue the you haw need wW ufx1Mel00d iM annul options dadosve doeuenent bslore wfwhp hb cry or frwsdbn Ftxger ifomnalicn an d the seas" mentioned h thismateriel maybe obtained an request, wW for tlt purpose, persons h Italy should contact Ookinen gads S lA S p A in Allan orb London branch chive d 13S Flad Sbed; pwaas h F blip Kwp should owW Goldrim Seale (Amin)) L.L.C. st 2 Guswft Road CerNrd' persons in Australia should contact Goldman Sable JBWore Py Ud (ABN 21005 797 807), and parsons in Zoaand Should contact Goldman Sacho .Mere (NZ) Lid. Persce who wall be categorized an pdM4 customers in the United Kingdom N Mich term a ddkwd In On Ales of the FaarrcW Swvim Mthorny reed #fs material inpp oith to wo Wt published reports on the companies mentioned herein and should rotor to the risk wwnhun sotto tshould hat haw bow Own byGold an Sale International. A copy of #me Ask w smings is available from de o f oss at Odin n Sails international an request. 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W'9-j+ p >% N att' �O �;' �.0 W V o� �� N, ~Y IL) CU Q Ucn IL) I C ,--� - ay "' En +' �' p ti o CA y «5 p +� ' • � 5 W as v L) 0 p -En v v } �r J aL as v :r cry apr a� �W v aU u v �' gz� C) a INVESTMENT ADVISORY BOARD Meeting Date: November 10, 2004 TITLE: Correspondence & Written Material Item D Meeting Minutes from September 28, 2004 Joint Meeting BACKGROUND: Attached please find the minutes from the September 28, 2004 joint meeting with the City Council. RECOMMENDATION: Information item only. John M. Falconer, Finance Director Minutes of Joint City Council Meeting 11 with City Boards, Commissions, and Committees September 28, 2004 1-E. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE CITY COUNCIL AND INVESTMENT ADVISORY BOARD. PRESENT: Board Members, Moulin, Olander, Mahfoud and Chairperson, Lewis ABSENT: Deniel (excused) Mayor Adolph called the meeting back to order at 8:48 p.m. He asked that the Board address any issues they would like to discuss. Chairperson Lewis asked about the status of the Investment Advisory Board (IAB) work plan. Council Member Henderson stated she felt it was on -hold pending this meeting and a discussion of the Board's position regarding a money manager. Board Member Olander stated. the IAB has spent a good deal of time during the past year investigating whether or not to recommend the City retain a money manager. He also addressed the Fanny Mae "situation" and stated the Board has been watching it for some time. Chairperson Lewis stated he felt the Board is not suggesting the City go out and hire a money manager but feels it is prudent to look into this and understand the pros and cons. He explained the City's portfolio is growing and becoming more complex. Council Member Perkins questioned if a money manager would be someone who would be employed by the City. Board Member Moulin stated that on advice from -the City Attorney, recommendations regarding a money manager were eliminated from the work plan because, pursuant to the Municipal Code, such a position would report to the City Treasurer. He felt since the City Treasurer is presently performing the money management of the City's portfolio, having an outside money manager reporting to him would be redundant. Chairperson Lewis said, in response to a question from Council Member Henderson, using a money manager would not represent a loosening of the safeguards that the Board has put in place. He explained his discussion with City Treasurer John Falconer has been that only a portion of the City's portfolio would be turned over to a money manager. He felt that portion would only include the very long term funds. Minutes of Joint City Council Meeting 13 September 28, 2004 with City Boards, Commissions, and Committees ADJOURNMENT There being no further business, it was moved by Council Members Sniff/Perkins to adjourn. Motion carried unanimously. Respectfully submitted, JUNE S. GREEK, City Clerk City of La Quinta, California BOARD MEMBER ITEMS