2005 02 09 IAB (2)r' "9krc4j
r rP£ •
P.O. Box 1504
" 'w LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLS TAMPICO
LA QUINTA, CALIFORNIA 92253
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
February 9, 2005 — 5:30 P.M.
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
I CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not
scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on January 12, 2005 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for December, 2004
B. Request for Proposal for Portfolio Manager
C. Consideration of Fiscal Year 2005/06 Investment Policies
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - January 2004
B. Pooled Money Investment Board Reports - November, 2004
VII BOARD MEMBER ITEMS
Vill ADJOURNMENT
INVESTMENT ADVISORY BOARD
Meeting Date: February 9, 2005
ITEM TITI F-
Transmittal of Treasury Report
for December 31, 2004
BACKGROUND:
Business Session: A
Attached please find the Treasury Report for December 31, 2004.
RECOMMENDATION:
Review, Receive and File the Treasury Report for December 31, 2004.
John M. Falconer, Finance Director
Ta f oul
4hf 4 09mrA
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for December 31,2004
DATE: January 31, 2005
Attached is the Treasurer's Report for the month ending December 31, 2004. The report is submitted to
the City Council each month after a reconciliation of accounts is accomplished by the Finance Department.
The following table summarizes the changes in investment types for the month:
Investment
Beginning
Purchased
Notes
Sold/Matured
Other
Ending
Change
Cash (3)
$ 1,120,216
(1)
$ (829,738)
$290,478
($829,738)
LAW
9,373,572
9,800,000
(4,500,000)
14,673,572
5,300,000
US Treasuries (2)
122,780,160
73,000,000
(75,000,000)
(546,724)
120,233,436
(2,546,724)
US Gov't Agencies (2)
27,331,529
2,000,000
(2,000,000)
(29,626)
27,301,903
(29,626)
Commercial Paper (2)
-
0
0
Corporate Notes
-
0
0
Mutual Funds
6,029,092
1,345,007
1
7,374,099
1,345,007
Total
$ 166,634,569
1 $ 86,145,007
$ 82,329,738
$ 576,350
$ 169,873,488
$ 3,238,919
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of
La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York
Monthly Custodian Report to determine the fair market value of investments at month end.
/ John M. Falconer
Finance Director/Treasurer
Footnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month.
(2) The amount reported in the other column represents the amortization of premium/discount for the
month on US Treasury, Commercial Paper and Agency investments.
211 C- 5
ate
(3) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments
before warrants are presented for payment by the payee at the bank.
�q
CITY OF LA QUINTA
AUTHORIZED INVESTMENTS AND DIVERSIFICATION
December 31, 2004
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum
percentage compliance limits and bid process requirements:
All maturities must be less than the maximum allowed.
Type of Investments
Checking/Savings and other time accounts
Certificate of Deposits, with interest earnings paid monthly.
U.S. Treasury Bills, Strips, Notes and Bonds.
U.S. Government Securities and Federal Government
Securities ( except any collateralized mortgage obligation
(CMO) or structured note which contains embedded rate
- Government National Mortgage Association (GNMA)
- Federal National Mortgage Association (FNMA)
- Federal Home Loan Bank Notes & Bonds (FHLB)
- Federal Farm Credit Bank (FFCB)
- Federal Home Loan Mortgage Corporation (FHLMC)
Prime Commercial Paper
Corporate Notes
Local Agency Investment Fund (LAIF)
Money market mutual funds regulated by the Securities and
Exchange Commission and whose portfolio consists only of U
Agency Securities maintaining a par value per share of $1.
Investment Agreements for bond proceeds and/or reserve funds
Total
All Funds
Maximum
All Funds
Actual %
All Funds
Over Under
85% 0.17%-84.83%
60% 0.00%-60.00%
100%
70.78%
-29.22%
100%
10,000,000
10,000,000
10,000,000
10,000,000
16.07%
$ -
5,000,000
7,370,000
5,000,000
9,961,000
n/a
(5,000,000)
(2,630,000)
(5,000,000)
39,000
$40,000,000
$ 27,331,000
$ 12,669,000
30%
0.00%
-30.00%
15%-15.00%
25%
8.64%
-16.36%
60%
4.35%
-55.65%
N/A 0.00% N/A
100.00%
Annualized Earnings of Pooled Cash Investments 1.890%
Annualized Earnings of Fiscal Agent Investments 2.229%
Annualized Earnings of All Investments 2.078%
Six Month Treasury Bill Rate 2.560%
Surplus
Maximum
Surplus
%
Surplus
Over Under
85% 0.01 %-84.99%
60% 0.00%-60.00%
100%
71.24%
-28.76%
100%
10,000.000
10,000,000
10,000,000
10,000,000
16.18%
$
5,000,000
7,370,000
5,000,000
9,961.000
n/a
(5,000,000)
(2,630,000)
(5,000.000)
39 000
$40,000,000
$27,331,000
12,669 000
30%
0.00%
-30.00%
15%-15.00%
25%
8.20%
-16.80%
20%
4.37%
-15.63%
N/A 0.00% N/A
100.00%
Restrictions
Maximum
Maturity
Credit Quality
FExceptions
—$99 000 per institution 2 years FDIC Insured None
—$99,000 per institution 2 years FDIC Insured None
Except no more than $5
million may be invested
over 2 ears
5 ears
None
Restricted to per -issuer
limits below:
100%
$10.0 million
$10.0 million
$10.0 million
$10.0 million
2 years
None
15%
Addition 15% WAM —31
$3 000 000 per Issuer
90 days
Standard & Poors/Moodys
A-1 P-1
None
$3 000 000 per Issuer 2 years at least Standard & Poors "AA' None
$40,000,000 per account
Utilize DVP
2 years
Unrated
None
Maintain $1 per share
par value.
Utilize DVP
60 days
AAA by two of three rating None
agencies or assets of $500 million
and investor SEC licensed > 5 yrs
None
w
City of La Quinta
Summary of Holdings
City, Redevelopment Agency and Financing Authority
December 31, 2004
City Cash & Investments 1
Bank Accounts
Name - vailability
Surplus
Wells Fargo - Demand
Yes
Petty Cash - Demand
No
Wells Fargo/Housing - Demand
Yes
Total - Bank Accounts
U. S. Government Securities
Custodian - Availability
Surplus
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Total - U.S. Government Securities
U. S. Treasury Notes
Custodian - Availability
Surplus
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
Yes
Bank of New York - Demand
_Yes
Checking
N/A
FARM CREDIT
FHLB
FHLB
FHLB
FHLB
FNMA -Discount
FreddieMac
Issuer/Type
U.S. Treasury Note
U.S. Treasury Note
U.S. Treasury Note
U.S. Treasury Note
U.S. Treasury Note
U.S. Treasury Note
U.S. Treasury Note
Interest
ank Rate
1 0.00%
1 N/A
1 0,00%
1 3.875%
1 2.500%
1 4.125%
1 1.875%
1 4.300%
1 1.230%
1 1.875%
1 2.330%
Discount
tank Rate
1 1.250%
1 1.125%
1 1.625%
1 1.625%
1 1.625%
1 1.875%
1 1.875%
1 2.500%
Accrued
Unrealized
marKet
Book
Interest
Gain Loss
Value
Bank
$ 272,690
N/A
N/A
$ 272,690
$ 2.425,239
1,000
N/A
N/A
1,000
1,000
16,788
N/A
N/A
16,788
23,437
$ 290,478
$ 290,478
$ 2,449,676
Amortized
Accrued
Unrealized
Market Days
Value
Interest
Gain Loss
Value to Maturity
5.011,229
$ 81.267
(6,541)
$ 5,085,955 32 $
1,984,762
2,222
6,488
1,993,472 349
2,002.187
38,959
(1,562)
2,039,584 14
2,370,511
16,788
(1,992)
2,385,307 46
1,004,325
15,527
(1,825)
1,018,027 53
4,998,807
-
(58.577)
4,940,230 7
7,501,963
66,016
(4,307)
7,563,672 15
2,428,119
29,041
21399,078 207
$27,301,903
$220,779
$97,357
$ 27,125,325 $
Market Days
Amortized
Accrued
Unrealized
Value
Interest
Gain Loss
Value to Maturity
4,989,930
5,294
(13,780)
4,981,444
151
4,976,433
28,434
(10,027
4,994,840
181
5,005,503
20,423
(42,403)
4.983,523
273
3,987,580
10,893
(21,780)
3,976,693
304
5,009,247
13,579
(51,997)
4,970.829
304
4,988,655
7,941
(27,717)
4,968,879
334
3,973,040
37,808
(7,720)
4,003,128
365
5,002,485
10,587
31,185
4,981.887
516
$ 37,932,873
$ 134,959
$ 206,609
$ 37,861,223
Local Agency Investment Fund
Rank
Interest
Rate
Book
Name - Availability
Surplus
Yes
Type
State Pool
N/A
2.13%
$ 11,099,636
LAIF - City -Demand
L-AIF - RDA - Demand
Yes
State Pool
N/A
2.13%
3,573,936
$ 14,673,572
Total - State Pool
Total City Investments
Total City Cash & Investments
Accrued
Unrealizable
Market
Days to
Interest
Gain/(Loss
Value
Maturity
NIA
N/A
N/A
1
N/A
N/A
N/A
1
$ 79,908,3481 $ 355,738 S (303.9669 WA
$ 80,198,8261 $ 355,7381 $ J303,9669 N/A
.49 of 1 % -
eo.,f4a-_
Par
/alue
Settlement
Date
Maturity
Date
Original Days
to Maturity
Yield to
Maturity
Market Value
Source
5.000,000
2,000.000
2,000,000
2,370,000
1,000,000
5,000,000
7,500,000
2,461,000
1/16/2004
12/15/2004
1/23n004
12=2003
1/23/2004
01/2312004
1/2912004
7/28/2004
2n/2005
12/1512005
1/14/2005
2/15/2005
21=005
11712005
1/15/2005
7/26/2005
382
365
357
441
396
350
352
363
1.269%
2.898%
1.231 %
1.700%
1.271%
1.262%
1.228%
2.405%
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
27,331,000
Par
Value
Settlement
Date
Maturity
Date
Original Days
to Maturity
Yield to
Maturity
Market Value
Source
5,000,000
5,000,000
5,000.000
4,000,000
5,000,000
5.000,000
4,000,000
5,000,0001
5/26n004
6/24/2004
10/15/2003
11/13/2003
10/31/2003
5/28/20134 •
05r30120134
06/01r2004
5/31/2005
613=005
9/30/2005
10i31/2005
10/31/2005
11rM2005
12re1n005
5/31/2006
368
371
716
718
731
551
549
729
1.745%
2.093%
1.776%
2.008%
1.853%
2.129%
2.570%
2.464%
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
Bank of New York
38,000,000
Management Statutory Management
-s Charged Fees Allowed
air ending 12/31/04 .50 of 1%
rW cnAinn 12/31/0 50 of 1%
City of La Quinta
Summary of Holdings
City, Redevelopment Agency and Financing Authority
December 31, 2004
Fiscal Agent Investments
Portfolio - RDA Investments
Custodian - Availability Surplus
2002 RDA U.S. Bank-CIP Yes
2004 Finance Authority -CIP Yes
2004 Finance Authority -CIP Yes
Total - U.S. Treasury
-
Interest
Amort¢ea
Issuer/Type
Rank
Rate
Value
U.S.Treasury Bill
1
2.180%
$ 27,865,907 $
U.S.Treasury Bill
1
1.945%
9,951,640
U.S.Treasury Bill
1
2.465%
44,483,016
Portfolio - Money Mrkt Mutual Funds
Money Market
Trustee - AvailabilitySurplus
Mutual Fund
Rank
Rate
Book
Civic Center U.S.Bank - Project
Yes
1 st American
1
1.530%
$ -
21
Civic Center U.S.Bank - Debt Svc
Yes
1st American
1
1.530%
1994 RDA U.S. Bank -Debt Svc
Yes
1 st American
1
1.530%
1995 RDA U.S.Bank - CIP
Yes
1 st American
1
1.530%
1995 RDA U.S.Bank - Special Fund
Yes
1st American
1
1.530%
-
100
2004 Fin Auth - 1995 US Bank - Escro
Yes
1 st American
1
1.530%
1998 RDA U.S.Bank - CIP
Yes
1st American
1
1.530%
1998 RDA P.S.Bank - Dbt Svc
Yes
1 st American
1
1.530%
1998 RDA U.S.Bank - Special Fund
Yes
1st American
1
1.530%
1998 RDA U.S.Bank - CIP
Yes
1 st American
1
1.530%
2001 RDA U.S. Bank - Dbt Svc
Yes
1 st American
1
1.530%
2001 RDA U.S. Bank - CIP
Yes
1 st American
1
1.530%
2002 RDA U.S. Bank - Dbt Svc
Yes
1 st American
1
1.530%
-
1,650,559
2002 RDA U.S. Bank - CIP
Yes
1st American
1
1.530%
2003 Taxable RDA U.S. Bank - DS
Yes
list American
1
1.530%
2003 Taxable RDA U. S. Bank-CO1
Yes
1sl American
1
1.530%
-
2.002,109
2003 Taxable RDA U. S. Bank-CIP
Yes
1st American
1
1.530%
2004 Fin Auth US Bank - CIP
Yes
1st American
1
1.530%
3,716,261
2004 Fin Auth US Bank - COI
Yes
1 st American
1
1.5.30%
i
5,049
$ 7,374,099
Subtotal - Mutual Fund
Total Fiscal Agent Investments
Grand Total
Average Maturity
Unrealized
Market
Days
7 7Gain Loss
Value
to Matur
$ (307)
$
27,865,600
83
(4,440)
9.947,200
90
(13,566)
44,469,450
174
Accrued
Unrealizable
Market
Interest
Gain/ Loss
Value
N/A
$
$ "
N/A
21
N/A
N/A
N/A
N/A
100
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,650,559
N/A
N/A
N/A
2,002,109
N/A
3,716,261
N/A
1
5,049
$
7,374'099
$ 89,674,662 $ - $ (118,3113111 $ 89,656,349
$ 169,873,4881 $ 355,738 1 $ 322,279 NIA
145 Days
Days to
Maturity
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
28,000,000
10,000,000
Bond Issue
1996 City Hall Revenue Bond
1996 City Hall Revenue Bond
1994 Series Bonds -RDA 1
995 Housing Bonds - RDA 1 & 2
995 Housing Bonds - RDA 1 & 2
2004 Financing Authority
1998 Series Bonds - RDA 1
1998 Series Bonds - RDA 2
995 Housing Bonds - RDA 1 & 2
1998 Series Bonds - RDA 2
2001 Series Bonds - RDA 1
2001 Series Bonds - RDA 1
2002 Series Bonds - RDA 1
2002 Series Bonds - RDA 1
2003 Series Bonds - RDA 1
2003 Series Bonds - RDA 1
2003 Series Bonds - RDA 1
2004 Financing Authority
2004 Financing Authority
12/23/04
09/30/04
12/23/04
Management
Fees
.40% of Average Daily
Maturity
Original Days
Yield to
Market Value
Date
to Maturit
Maturit
Source
03/24/05
91
2.1410%
U.S.Bank
03/31/05
182
1.9916%
U.S.Bank
06/23/05
182
2.4530%
U.S.Bank
Ai
City of La Quinta
Summary of Investment Activities
City, Redevelopment Agency and Financing Authority
December 31.2004
Investments Purchased
Yield
Name
Type
Principal
Date
to Maturity
Par
Checking & Savings - Net Change
Checking & Savings
N/A
N/A
N/A
LAW - CITY
State Pool
9,800,000
various
US Treasury
T Bills
28,000,000
12/23/2004
2.140%
28,000,000
US Treasury
T Bills
45,000,000
12/23/2004
2.450%
45,000,000
Federal Home Loan Bank
GSE
2,000,000
12/15/2004
2.900%
2,000,000
Mutual Funds - Net Change
U.S. Treasury Mutual Funds
1,345,007
N/A
N/A
N/A
Total Investments Purchased
86,145,007
Investments Sold/Matured
Yield
Name
Type
Principal
Date
to Maturity
Par
Checking & Savings - Net Change
Checking & Savings
829,738
LAW - CITY
State Pool
4,500,000
various
US Treasury
T Bills
28,000,000
12/23/2004
1.680%
28,000,000
US Treasury
T Bills
45,000,000
12/23/2004
1.680%
45,000,000
US Treasury
T Bills
2,000,000
12/30/2004
1.630%
2,000,000
Federal Home Loan Bank
GSE
2,000,000
12/15/2004
1.470%
2,000,000
Mutual Funds - Net Change
U.S. Treasury Mutual Funds
-
Total Investments Sold/Matured
82,329,738
Unamortized Premium/Discount Change 1 ($576,350)
Investment Change
Prior Month Ending Balance
$ 166,634,569
Plus: Investments Purchased
86,145,007
Less: Investments Sold
(82,329,738)
Unamortized Premium/Discount change
576,350
Month Ending Balance
$ 169,873,488
n
City of La Quints
Distribution•of Cash & Investments & Balances
December 31, 2004
Distribution of Cash & Investments
city
Totals
General Fund
$ 28,835,075
Gas Tax Fund
41 ,
Quimby Fund
411,84242
Infrastructure Fund
652,574
Developer Impact fees
10,539,974
Art in Public Places
846,174
Special Revenue
551.715
Interest Fund
Capital Project Fund
231,104
AD 2000-1 Construction Fund
454,287
Equipment Replacement Fund
2,888,570
Information Technology Fund
695,777
Park Equipment & Facility
251,155
Landscape & Lighting Fund
(674,338)
SilverRock Resort
30,397
Trust & Agency Funds
877,154
Subtotal
$ 47,002,220
Redevelopment Agency
Totals
Project Area
1
Project Area
2
Capital Improvement Funds
$ 97,161,268
37,233,980
59,927,288
Debt Service Funds
9,242,190
8,143.943
17,386,133
Low & Moderate Income Funds
1,061,285
7.255 949
8,317,234
Subtotal
$ 47,537,455
$ 75,327,180
$ 122,864,635
Financing Authority
Totals
Project Funds
5,049
Debt Service Funds
$ 1,584
Subtotal
$ 6,633
Total
$ 169,873,488
Cash Balances
Type
July 04
August
September
October
November
December
January 04
February
March
April
May
June
Cash & Investments
$ (2,991,545)
8386876
$ 3,884,181
639,205
1,120,216
$290,478
State Pool
21.553,263
9803263
9,303,263
9,673,572
9,373,672
14,673,572
U.S. Treasury Bills/Notes
132.380.612
132507373
122.522,588
122,653,488
122,780,160
120,233,436
U.S. Government Securities
27.396,298
27379840
27,363,913
27.347,457
27,331,529
27,301,903
Prime Commercial Paper
-
0
0
0
Corporate Notes
-
0
-
0
0
Mutual Funds
6,073,884
4577404
7 925 497
7428,469
6,029,092
7,374,099
Total
$ 184 412 512
$ 182 654 756
$ 170 999 442
$ 167,742,191
$ 166 634,569
$ 169,873,488
$ -
$ -
$ -
$
Type
July 03
August
September
October
November
December
January 03
February
March
April
May
June
Cash & Investments
$ (204,843)
$ (280,692)
$ (115.765)
$ 117.749
$ 171,712
$ 393,313
$ 240,310
$ 75,139
$ (102,723)
(1,178,885)
$ 372.199
$ 766,613
State Pool
24.654.884
16,754,884
17,104,884
26,370,608
25,620,608
26,195,608
28,941,285
32,441,285
33,441,285
28,949,469
29,249,469
20,749,469
U.S. Treasury Bills/Notes
57,039,588
57,062.903
67,063,477
72,131,024
72,128,268
69,930,924
79,951,640
69,982,902
70,031,843
70,056,768
80,039,567
132,253,851
U.S. Government Securities
27,364.415
27.390,175
27,415,104
27,494,166
27,513,320
27.392,009
30.094.727
30.078.982
30,061,700
30,045,439
30,028,640
27,511,851
Prime Commercial Paper
-
_
-
Mutual Funds
1 016 899
1 7,405,448
1 16,133,778
1 372,093
372,987
2,497.708
2,497,970
7,131,996
2,392,507
2,393.434
2,394,290
6,111,182
Total
$ 109 870 943
$ 108,332 718
127 601 478
$ 126 485 640
$ 125 806 895
$ 126 409 562
$ 141 725 932
$ 139 710 304
$ 135 824 612
$ 130,266,225
142,084,165
187 392 966
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City of La Quinta
Cash Flow Analysis
FY 04/05
Beginning Cash Balance
Actual
Forecasted
Forecasted
Forecasted
Forecasted
Forecasted
Forecasted
Total
YTD Through 12/31/2004
Janua -05
Februa -05
March-05April-05
Ma -05
June-05
187,392,966
169,873,487
180,792,583
166,832,092
160,387,438
152,995,423
165,077,744
187,392,966
Property Tax/ Tax Increment
Transient Occupancy Tax
Sales Tax
Other revenues
Revenues
728,954
1,113,042
2,230,914
35,743,733
39,816,643
23,109,587
483,636
407,220
2,950 428
26,950,871
149,830
483,636
325,776
1,982,857
2,942,099
271,991
523,939
346,137
1,670,842
2,812,908
370,649
523,939
346,137
1,695,053
2,935,778
23,957,018
483,636
447,942
2,195,056
27,083,652
556,955
241,818
407,220
10 288,214
11,494,207
49,144,983
3,853,646
4,511,346
56,526 183
114,036,158
Expenditures
Salaries & Fringe Benefits
Redevelopment Agency
Other expenditures
Capital Projects
Debt Service Princi aVInterest/Pass Through)
Total Expenditures
3,314,052
2,051,377
7,179,338
17,860,273
9,844,491
40,249,531
571,081
149,282
2,305,422
4,599,000
8,406,991
16,031,776
571,081
107,254
2,414,163
5,517,000
8,293,091
16,902,589
571,081
123,861
2,514,096
5,702,000
346,525
9,257,563
571,081
128,516
2,186,000
4,275,000
3,167,195
10,327,792
571,081
80,874
1,968,037
4,341.000
8,040,339
15,001,331
571,081
176,991
2,067,137
3,204,000
3,545,360
9,564,569
6,740,538
2.818,156
20,634,193
45,498,273
41 643,992
117,335,152
Net Revenues/Expenditures
(432,888)
10,919,095
(13,960,490)
(6,444,655)
(7,392,015)
12,082,321
1,929,638
(3,298,993)
(17,086,591)
Changes in Assets/Liabilities
(17,086,591)
Ending Cash Balance
169,873,487
180,792,583
166,832,092
160,387,438
152,995,423
165,077,744
167,007,382
167,007,382
Net Change in Cash before Maturing Investments
(17,519,479)
10,919,095
(13,960,490)
(6,444,655)
(7,392,015)
12,082,321
1,929,638
(20,385,584)
Proiected (Sources)/Uses of Cash - City Pnnlarl
LAIF
MaturingInvestments - Pooled Cash
(15,518,095)
3,335,887
563,325
3,117,015
(16,423,321)
(5,133,638)
Total
14,500,000
8,370'000
0
0
10,000 000(5.000.0001
30,018,095
5,034,113
563,325
3,117,015
26,423,321
10,133 638
Proiected (Snurcesl/ttaas of Cash _ Ficrn1 enan4
Bond Money Market
4,599,000
5,517,000
5,702,000
4,275,000
4,341,000
3,204,000
Bond Sale Proceeds
0
0
0
0
0
0
Maturing Investments
0
0
(38,000,000)
0
0
(45,000,000)
Debt Service Money Market
0
5,107,603
179,330
0
0
0
Total
4,599,000
10,624,603
32,118,670
4,275,000
4,341 000
(41,796,000
Net Change in Cash after Maturing Investments (25,419,095) 5,590,490 (31,555.345) r 7,392,015 (22,082,321) 1 (51,929,638)
Proiected Linuid Cash Ralanr_ac if nn inyaafr anfe �ftda
LAIF Balance
14,673,572
44,691,667
49,725,780
49,162,455
46,045,441
72,468,762
82,602,400
Bond Capital Project Money Market
7,374,078
2,775,078
(2,741,922)
29.556,078
25,281,078
20,940,078
62,736,078
Debt Service Money Market
21
21
5,107.582
5,286 912
5 286 912
5,286 912(5,286,912)
Major Changes in Cash Flow Analysis from Prior Report
Revenues: None
Expenditures: None
City of La Quinta
Chart of Interest Rates
July 2004 through December 2004
3.00% -
2.50%
2.00%
c
g.50%
d
a
1.00%
0.50%
0.00%
1�
00�
— - - — Annualized Earnings of Pooled Cash Investments --*--Annualized Earnings of Fiscal Agent Investments
■ Annualized Earnings of All Investments * Six Month Treasury Bill Rate
--* LAI F Rate
0
.City of La Quinta
Historical Information
December 31, 2004
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAW Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAI F Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAI F Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAIF Rate
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
Six Month Treasury Bill Rate
Average Maturity (days)
LAI F Rate
July 04
August
Set
Oct
Nov
Dec
Jan 05
Feb
March
Aril
May
June
1.73%
1.73%
1.79%
1.79%
1.79%
1.89%
0.50%
0.50%
1.07%
1.14%
1.43%
2.23%
1.68%
1.57%
1.68%
1.72%
1.73%
2.08%
1.74%
1.78%
1.95%
2.04%
2.37%
2.56%
214
172
167
112
113
145
1.604%
1 1.672%
1 1.771 %
1 1.890%
1 2.003%
1 2.134%
July 03
August
Set
Oct
Nov
Dec
Jan 04
Feb
March
April
May
June
1.66%
1.65%
1.65%
1.59%
1.64%
1.67%
1.58%
1.65%
1.50%
1.50%
1.54%
1.69%
0.52%
0.45%
0.49%
0.48%
0.48%
0.57%
0.30%
0.30%
0.50%
0.50%
0.50%
0.47%
1.43%
1.35%
1.26%
1.36%
1.38%
1.41 %
1.37%
1.38%
1.33%
1.33%
1.36%
1.62%
0.98%
1.06%
1.01 %
1.04%
1.03%
0.99%
1.00%
1.01 %
1.01 %
1.19%
1.38%
1.73%
131
110
80
121
98
117
140
120
155
137
137
209
1.650%
1.632%
1.640%
1.596%
1.572%
1 1.545%
1 1.528%
1 1.440%
1 1.474%
1 1.445%
1.426%
1.426%
July 02
August
Set
Oct
Nov
Dec
Jan 03
Feb
March
4ril
May
June
2.46%
2.45%
2.46%
2.41 %
2.32%
2.23%
2.11 %
1.99%
2.01 %
1.98%
1.86%
1.73%
1.00%
1.27%
1.26%
1.00%
1.00%
1.00%
0.80%
0.59%
0.75%
0.72%
0.73%
0.49%
2.05%
2.07%
2.10%
2.08%
2.02%
1.80%
1.62%
1.74%
1.78%
1.76%
1.54%
1.40%
1.73%
1.64%
1.62%
1.55%
1.29%
1.27%
1.16%
1.20%
1.18%
1.17%
1.10%
0.86%
172
172
139
121
109
163
137
131
117
92
74
123
2.71 %
1 2.59%
1 2.60%
1 2.49%
1 2.30%
1 2.31 %
1 2.10%
1 1.95%
1 1.98%
1 1.86%
1 1.80%
1 1.70%
July 01
August
Set
Oct
Nov
Dec
Jan 02
Feb
March
April
May
June
4.79%
4.90%
4.63%
4.04%
3.05%
2.83%
2.37%
2.26%
2.25%
2.35%
2.59%
2.42%
3.40%
3.20%
3.20%
2.20%
1.70%
1.40%
1.60%
1.50%
1.50%
1.50%
1.00%
1.00%
4.58%
3.91 %
3.98%
3.57%
2.49%
2.34%
1.97%
1.95%
1.99%
2.05%
1.78%
1.93%
3.49%
3.39%
3.39%
2.01%
1.99%
1.85%
1.83%
1.85%
2.16%
1.92%
1.89%
1.77%
48
51
43
27
62
44
27
53
35
79
122
132
4.64%
1 4.50%
1 4.29%
1 3.79%
1 3.53%
1 3.26%
1 3.07%
1 2.97%
1 2.86%
1 2.85%
1 2.85%
1 2.69%
July 00
August
Set
Oct
Nov
Dec
Jan 01
Feb
March
April
May
June
6.37%
6.43%
6.34%
6.45%
6.46%
6.46%
6.36%
6.31%
5.89%
5.86%
5.20%
4.98%
6.17%
6.11%
6.23%
6.20%
6.20%
5.97%
5.03%
5.06%
4.82%
4.10%
3.60%
3.50%
6.31 %
6.35%
6.31 %
6.39%
6.40%
6.38%
6.04%
6.08%
5.75%
5.53%
4.96%
4.70%
6.28%
6.38%
6.26%
6.33%
6.32%
5.74%
5.03%
4.66%
4.27%
3.79%
3.55%
3.34%
220
232
231
202
181
158
124
110
101
80
76
65
6.44%
6.51%
6.50%
6.52%
6.54%
6.35%
6.37%
6.17%
5.98%
1 5.76%
1 5.33%
1 4.96%
mA
CITY OF LA QUINTA
CITY
FIXED
CITY
LONG TERM
RDA
FIXED
RDA
LONG TERM
FINANCING
FA
LONG TERM
GRAND
BALANCE SHEET 12/31►04
CITY
ASSETS
DEBT
RDA
ASSETS
DEBT
AUTHORITY
DEBT
TOTAL
ASSETS:
POOLED CASH
18
(18,233,554.87)
0,00
0.00
32,516,254.37
0.00
0.00
0.00
0.00
1.562.85
0.00
0.00
0.00
14,284,262.35
LQRP INVESTMENT IN POOLED CASH
0.00
0.00
0,00
0.00
0.00
662,000.00
83.000,000.00
0.00
0.00
0.00
0.00
331,000.00
i48,3t,000.00
INVESTMENT T-BILLMOTES &OTHER
65,331,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
AUTO MALL CASH
0.00
0.00
0.00
0.00
0.00
16.788.18
0.00
0.00
0.00
0.00
16,788 18
LQRP CASH
BOND REDEMPTION CASH
0.00
0.00
0.00
100.55
0.00
0.00
0.00
0.00
0.00
21.42
0.00
0.00
0.00
121.97
0.00
BOND RESERVE CASH
0.00
0.00
0.00
0.00
0.00
0.00
7,368,928.67
0.00
0.00
5,048.75
0.00
7,373,977.42
BOND PROJECT CASH
BOND ESCROW CASH
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,000.00
PETTY CASH 1,000.00
CASH & INVESTMENT TOTAL 47,098,445.13
0.1
0.00
0.00 0.00
0.00 123,564,071.77
0.00
0.00
6,633.02
0.00
170,669,149.92
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
155,175.93
0.00
0.00
0.00
60,900.00
(699,436.89)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
216.075.93
(795,662,30)
PREMIUM/DISCOUNT ON INVESTMENT
(96,225.41)
0.00
0.00
0.00
85,493.59
0.00
0.00
0.00
0.00
85,493.59
LQRP-ACCOUNTS RECEIVABLE
0.00
(7,531.25)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(7,531.25)
102,741,527.47
INTEREST RECEIVABLE
IN
L TERESTRECEIVABLE
0.00
0.00
0.00
12.741,527.47
0.00
0.00
0.00
0.00
0.00
90,000,000.00
0.00
0.00
3,815,311.75
DUE FROM OTHER AGENCIES
3,815,311.75
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
879.096.69
DUE FROM OTHER AGENCIES-CVAG
879,096.69
0.00
0.00
0.00
0.00
0.00
0.00
0.00
(814,033.81
CVAG ALLOWANCE
(879,096,69)
14,033.81,
0.00
0.00
0.00
0.00
0.00
0.00
0.00
14,033.81
0.00
DUE FROM OTHER GOVERNMENTS
0.00
0.00
0.00
0.00
0.00
0,00
0.00
0.00
DUE FROM OTHER FUNDS
ADVANCES TO OTHER FUNDS - PRINCIPAL
21,397.550.21
O.DO
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13.742.076.14
13,742,070.00
ADVANCES TO OTHER FUNDS - INTEREST
8.390,850.42
0.00
0.00
5.72
5,351,225.72
0.00
0.00
0.00
0.00
0.00
ADVANCES TO OTHER FUNDS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.49
182.841.75
SILVER ROCK - PRINCIPAL
184,306.49 ,
2,841.75
0.00
0.00
0.00
0.00
0.00
0.00
0'�
2 �0.00
NSF CHECKS RECEIVABLE
ACCRUED REVENUE
0.00
0.00
0.00
0.00
0.00
0.00
64.962,148.00
0.00
0.00
0.00
0.00
0.00
0.00
455,403,837.26
FIXED ASSETS
17,569,115.26
(2,562.164.00)
372,872,574.00
(58,105,887.00)
0.00
0.00
0.00
(210,000.00)
0.00
0.00
0.00
(60,878,051.00)
ACCUMULATED DEPRECIATION
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
.00
5,237.00
TRAVEL ADVANCES
EMPLOYEE ADVANCES
5,237.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
213,856.48
PREPAID EXPENSES
RECEIVABLE TOTAL
213,856.48
49.082,358.44
0.00
314,766,687.00
0.00
0.00
17,539,709.89
64,752,148.00
0.00
90,000,000.00
0.00
536,140,903.33
WORKER COMPENSATION DEPOSIT
0.00
117,729.37
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
11
4,30.00
,30.00
8
RENT DEPOSITS
4,830.00
0.00
0.00
0.00
0'00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
UTILITY DEPOSITS
0.00
1,073.21
0.00
0.00
319,460.00
0.00
0.00
0.00
0.00
0.00
320,533.21
443,092.58
MISC. DEPOSITS
DEPOSITS TOTAL
123,632.58
0.00
0.00
319,460.00
0.00
0.00
0.00
GENERAL FIXED ASSETS
0•00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ACCUMULATED DEPRECIATION
0.00
0.00
0.00
0.00
0.00
.
0.00
0.00
0.00
0.00
.00
0. 00
AMOUNT AVAILABLE TO RETIRE L/T DEBT
0.00
1,970,5522.8585
0.00
0.00
247,549,965.00
0.00
94,814,343.00
85
344,334,860.85
AMOUNT TO BE PROVIDED FOR LIT DEBT
0.00
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
96,304,436.15
314,766,687.00
1,970,552.85 141.423,241.66
64,752,148.00 247,549,965.00
90,006,633.02
94,814,343.00 1,051,588,006.68
TOTAL ASSETS
LIABILITIES:
ACCOUNTS PAYABLE
553,065.41
0.00
0.00
19,645.49
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
572,710. 90
95
152.130.000.95
DUE TO OTHER AGENCIES
152,130.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
DUE TO OTHER FUNDS
ADVANCES FROM OTHER FUNDS - PRINCIPAL
0.00
5.535,532.21
0.00
0.00
21,397,550.21
0.00
0.00
0.00
0.00
0.00
0.00
0.00
28,390,851.52
8,390,851.00
ADVANCES FROM OTHER FUNDS - INTEREST
0.00
0.00
0.00
8,390.851.52
0.00
0.00
0.00
0.00
0.00
0.00
0.00
INTEREST PAYABLE
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
158,228.15
RETENTION PAYABLE
PAYROLL LIABILITIES
158,228.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
430.34
STRONG MOTION INSTRUMENTS
8,430.34
0.00
0.00
0.00
0.00
0 00
0 00
0 00
0 00
2,648.
348 87
FRINGE TOED LIZARD FEES
32,648.87
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
SUSPENSE
DUE TO THE CITY OF LA QUINTA
0.00
0.00
0.00
0.00
0.00
0
0.00
0
0.00
0
0.00
0
0.00
0 00
36,248,083.15
PAYABLES TOTAL
6,440,035.93
0.00
0.00
29,808,047.22
ENGINEERING TRUST DEPOSITS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0 00
0.00
0 00
0.00
0.00
0•00
SO. COAST AIR QUALITY DEPOSITS
0.00
0.00
0.00
0.00
0.00
.00
18,664.00
0.00
0.00
0.00
0.00
0.00
18,664.00
1,532,479. 35
LQRP DEPOSITS
DEVELOPER DEPOSITS
1,529,644.35
0.00
0.00
2,835.00
25,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
692,757.31
MISC. DEPOSITS
667,757.31
877,154.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
877,154.45
3.121.055.11
AGENCY FUND DEPOSITS
TOTAL DEPOSITS
3,074,556.11
0.00
0.00
46.499.00
0.00
0.00
0.00
DEFERRED REVENUE
3,767,177.88
0.00
0.00
10,618.101.84
0.00
0.00
0.00
0.00
90,000,000.00
90,000,000.00
0.00
0.00
104,385.279.72
104.385.279.72
OTHER LIABILITIES TOTAL
3,767,177.88
0.00
0. 00
10.618,101.84
COMPENSATED ABSENCES PAYABLE
0.00
0.00
531,553.26
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
531,553.26
1,010,688.59
DEVELOPER AGREEMENT
0.00
0.00
0.00
0.00
1,010,688.59
428,311.00
0.00
0.00
0.00
0.00
0.00
0 00
428,311.00
2.050.000 00
DUE TO THE CITY OF LA QUINTA
0.00
0.00
0.00
0.00
0 00
2 00
0 00
0.00
667336
6,667,3360.E
DUE TO COUNTY OF RIVERSIDE
0.00
0.00
0.00
0.00
0.00
6,667,336.00
667 336
0.00
0.00
0.00
DUE TO C.V. UNIFIED SCHOOL OIST.
DUE TO DESERT SANDS SCHOOL DIST.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
90,000,000.00
0.00
0.00
90,000,000.00
LOANS PAYABLE
0.00
0.00
0.00
0.00
0.00
100
0.00
0.00 148,832,629.00I'll
0.00
0.00
94.814,343.00
94,814,343.00
243,646,972.00
BONDS PAYABLE
TOTAL LONG TERM DEBT
0.00
0.00
1,970,552.85
0.00
0.00
247,549,965.00
13,281,769.92
0.00
1,970,552.85
40,472,648.06
0.00
247,549,965.00
90-000,000.00
94.614,343.00
488,089,278.83
488,089,278.83
TOTAL LIABILITIES
83,022,666.23 314,766.687.00
0.00
100,950,593.60
64.752,148.00
0.00
6.633.02
0.00
563,498,727.85
EQUITY -FUND BALANCE
g6,304,436.15 314,766,687.00
1,970,552.85
141,423,241.66
64,752,148.00 247,549,965.00
90,006,633.02
94,814,343.00 1,051,588,006.68
0.00
TOTAL LIABILITY &EQUITY
0.00
0.00
o.00
0.00
0.00
0.00
0.00
0.00
CASH & INVESTMENT TOTAL
170,669,149.92
PREMIUMIDISCOUNT ON INVESTMENT
(795,662.30)
TOTAL
169,873,487.62
H PA
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: February 9, 2005
ITEM TITLF--
Request for Proposal for Portfolio Manager
BACKGROUND:
Attached please find a draft proposal for Portfolio Manager services for the Board's
consideration. Shaded items require additional information before finalizing the
document.
Remaining possible items to be incorporated into the RFP include:
• Amount to invest
• Discretionary or Non -discretionary Account
• Length of maturity
• Types of investments - limited to City Investment Policy or Government Code
Once these or any other items are discussed the results can be incorporated into
the RFP.
RECOMMENDATION:
Continue developing the Request for Proposal for Portfolio Manager Services.
ohn M. Falconer, Finance Director
Request for Proposals
Investment Advisory Services
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from
interested firms for the provision of investment management services for City of La Quinta,
t.:..:ana:: �e. .............. .. .... a... ... ,> .. : 0. ,.. .. ..3 5...... . Via. .... NN
.... 42`'S' :. ,..,.. P. ., 0 .... .,. .b ICCoa.a. .. ... ..:a•:!.C>?::?" :< �::. .: ce:.ni . 1.: :�'bn:?�?
CA. Thy° bac ct+�rt�etaa rty F3 R 4
R •
The investment of City of La Quinta, CA's funds is guided by the applicable State
statutes and the City of La Quinta, CA's investment policy. A copy of the investment
policy is attached for your information.
Questions regarding this RFP should be directed to:
Name: John M. Falconer
Title: Finance Director/Treasurer
City of: La Quinta, CA
Address: 78-495 Calle Tampico
City, State Zip Code: La Quinta, CA 92253
Phone Number: (760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
This section defines how the proposal will be judged. Sample criteria and weightings follow:
10%: Responsiveness to the RFP, communicating an understanding of the overall program and
services required
25%: Experience of the firm in providing services to public sector entities of similar size and
with similar investment objectives
25%: Professional experience and qualifications of the individuals assigned to the account
15%: Portfolio management resources, investment philosophy and approach
15%: Reporting capabilities
10%: Fees
II. SELECTION TIMETABLE
dii
INV
'' ,>x r3.Rk• i�XFStr54oFa.a.�.a �..a. .� su?'w,: w�<�"`'�x%`?" .,�"'�a?..:a34 .•4 ,:,<4 a
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
1. Describe your organization, date founded, ownership and other business
affiliations. Provide number and location of affiliated offices. Specify the
number of years your organization has provided investment management
service.
2. Describe your firm's revenue sources (e.g., investment management,
institutional research, etc.) and comment on your firm's financial condition.
3. Within the past three years, have there been any significant developments in
your organization (e.g., changes in ownership, new business ventures)? Do
you expect any changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or
litigation involving your organization, any officer, or employee at any time.
5. Identify the types of accounts managed by your firm (e.g., government,
pension, corporate, high net worth, endowment/foundation).
6. Describe the firm's fiduciary liability and/or errors and omissions insurance
coverage. Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by
classification.
2. Provide an organization chart showing function, positions, and titles of all
the professionals in your organization.
N
3. Provide biographical information on investment professionals that will be
involved in the decision -making process for our portfolio, including number
of years at your firm. Identify the person who will be the primary portfolio
manager assigned to the account.
4. Describe your firm's compensation policies for investment professionals.
C. Assets Under Management
1. Summarize your institutional investment management asset totals by
category for your latest reporting period in the following table:
Operating Funds Other Funds
(specify)
Governmental $ $
Other Institutional $ $
2. Provide the number of separate accounts whose portfolios consist of
operating funds.
3. List in the following table the percentage by market value of aggregate
assets under management for your latest reporting period:
Type of Asset Percent by Market
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated A
Corporate securities rated BBB or lower
Other
(specify )
4. Describe the procedures that your firm has in place to address the potential
or actual credit downgrade of an issuer and to disclose and advise a client of
the situation.
3
5. Provide data on account/asset growth over the past three years. Indicate the
number of accounts gained and the number of accounts lost.
6. List your five largest clients. Identify those that are exclusively operating
fund relationships and/or those that are other relationships (e.g., bond fund,
retirement fund).
7. Provide a copy of the firm's Form ADV, Parts I and II (including all
schedules).
8. Provide proof of State of California Registration, if your firm is not eligible
for SEC registration.
9. Provide a sample contract for services.
D. Philosophy/Approach
1. Describe your firm's investment philosophy for public clients, including
your firm's philosophy regarding average duration, maturity, investment
types, credit quality, and yield.
2. Describe in detail your investment process, as you would apply it to City of
La Quinta, CA's portfolio.
3. What are the primary strategies for adding value to portfolios (e.g., market
timing, credit research, trading)?
4. Describe the process you would recommend for establishing the investment
objectives and constraints for this account.
5. Do you have or would you recommend there be policy restrictions with
respect to maturity, sector, quality, and coupon?
4
6. Describe in detail your process of credit risk management, including how
you analyze credit quality, monitor credits on an ongoing basis, and report
credit to City of La Quinta, CA.
7. Describe your firm's trading methodology.
8. Describe your firm's decision -making process in terms of structure,
committees, membership, meeting frequency, responsibilities, integration of
research ideas, and portfolio management.
9. Describe your research capabilities as they would pertain to the City of La
Quinta, CA's portfolio. What types of technical analysis do you use?
10. Describe the firm's approach to managing relationships with the broker -
dealer community.
E. Portfolio Management
1. Are portfolios managed by teams or one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City
of La Quinta, CA?
4. How frequently are you willing to meet with us?
5. Describe procedures used to ensure that portfolios comply with client
investment objectives, policies, and bond resolutions.
5
F. Fees Charged
1. Please include a copy of your firm's fee schedule applicable to this RFP.
2. Identify any expenses that would not be covered through this fee structure
and would be required in order to implement the firm's program.
3. Is there a minimum annual fee?
4. Please provide a statement of fees for such additional services as arbitrage
rebate related services.
5. Are fees charged when there is no activity in the account?
G. Performance Reporting
1. Please describe how you typically report performance.
2. Please provide performance history for the past five years for current
accounts comprised of securities with maturities, quality and sectors similar
to those of City of La Quinta, CA. Indicate whether your returns are
calculated and compiled in accordance with the Association for Investment
Management and Research (AIMR) standards. If not, how does the
performance presentation differ from AIMR standards?
3. Do your reports conform to State reporting standards? Are you willing to
customize your reports to meet our specifications?
4. How will you notify us of investment transactions?
Z
5. Are confirmation of investment transactions sent directly by the
broker/dealer to the client?
H. References
Provide a list of at least five (5) client references in California. References
should be public agencies with portfolio size and investment objectives similar
to City of La Quinta, CA. Include length of time managing the assets, contact
name, and phone number.
I. Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to
the [Board/Council]'s approval of any agreement for services.
J. Submittal of proposals
1. Seven (7) of copies of the proposal shall be submitted in a sealed envelope
bearing the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: John M. Falconer, Finance Director/Treasurer
2. Proposal must be received no later than
3. Proposals should be verified before submission. The City of La Quinta, CA
shall not be responsible for errors or omissions on the part of the respondent
in preparation of a proposal. The City of La Quinta, CA reserves the right
to reject any and all proposals, to wave any irregularities, or informalities in
the proposals, and to negotiate modifications to any proposal.
7
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: February 9, 2005
TITLE:
Consideration of Fiscal Year 2005/06
Investment Policies
BACKGROUND:
Each year at this time the Investment Advisory Board begins the process of
reviewing the investment policy that will be put into place in the next fiscal year
beginning July 1 St.
At the June meeting, the City Council Manager, City Attorney and Staff will meet
with the Board to discuss the changes, if any. The policy will then be forwarded to
the City Council for their consideration. Typically, the Investment Advisory Board
Chairman, or designee attends the City Council meeting and is available in the
event the City Council has any questions regarding policies.
Staff has attached the current investment policy. In addition, at the September
meeting the Board added the following items to this years work plan which may
want to be incorporated into the investment policy.
• Meeting with City Council to discuss using a Portfolio Manager, which
acceptable, would require an Ordinance change;
• Consider alternative investments based upon the increase in the size of the
portfolio;
• Continue to monitor developments regarding Government Sponsored Enterprises
(GSE's), LIAF, Corporate Notes and Commercial Paper; and
• Discuss extending the maturity limit from the two year maximum on the
portfolio — currently $5 million in Treasury instruments may exceed the two year
limit and may be invested up to five years.
RECOMMENDATION:
Continued review of the Investment policies for approval by City Council in June
2005.
r
ohn M. Falcoher, Finance Director
CITY OF LA QUINTA
Investment Policy
Table of Contents
Section Topic
Page
Executive Summary
2
1
General Purpose
4
II
Investment Policy
4
III
Scope
4
IV
Objectives
4
► Safety
► Liquidity
► Yield
► Diversified Portfolio
V
Maximum Maturities
6
VI
Prudence
6
VII
Delegation of Authority
6
VIII
Conflict of Interest
7
IX
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
X
Authorized Investments and Limitations
8
XI
Investment Pools
12
XII
Payment and Custody
13
XIII
Interest Earning Distribution Policy
13
XIV
Internal Controls and Independent Auditors
13
XV
Benchmark
15
XVI
Reporting Standards
15
XVII
Financial Assets and Investment Activity Not Subject to this Policy
16
XVIII
Investment of Bond Proceeds
16
IX
Investment Advisory Board - City of La Quinta
16
XX
Investment Policy Adoption
17
Appendices: A. Summary of Authorized Investments and Limitations
18
B. Municipal Code Ordinance 2.70 - Investment Advisory Board
19
C. Municipal Code Ordinance 3.08 - Investment of Moneys and Funds
20
D. Segregation of Major Investment Responsibilities
22
E. Listing of Approved Financial Institutions
23
F. Broker/Dealer Questionnaire and Certification
24
G. Investment Pool Questionnaire
29
H. Glossary
33
1
City of La Quinta
Investment Policy
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards
users must follow in investing funds of the City of La Quinta.
It is the policy of the City of La Quinta to invest all public funds in a manner which
will provide a diversified portfolio with maximum security while meeting daily cash
flow demands and the highest investment return in conformity to all state and local
statutes. This Policy applies to all cash and investments of the City of La Quinta, La
Quinta Redevelopment Agency and the La Quinta Financing Authority, hereafter
referred in this document as the "City".
The primary objectives, in order of priority, of the City of La Quinta's investment
activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence exercise in the
management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as the probable income to be derived.
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated
to the City Treasurer, who shall establish and implement written procedures for the
operation of the City's investment program consistent with the Investment Policy.
The Treasurer shall establish and implement a system of internal controls to maintain
the safety of the portfolio. In addition, the internal control system will also insure the
timely preparation and accurate reporting of the portfolio financial information. As
part of the annual audit of the City of La Quinta's financial statements the
independent auditor reviews the adequacy of those controls and comments if
weaknesses are found.
2
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance to a reasonable person of questionable or
improper influence.
The City of La Quinta Investment Policy maintains a listing of financial institutions
which are approved for investment purposes. All Broker/Dealers and financial
institutions selected by the Treasurer to provide investment services will be approved
by the City Manager subject to City Council approval.
The Treasurer will be permitted to invest only in City approved investments up to the
maximum allowable percentages or dollar limitations and, where applicable, through
the bid process requirements. Authorized investment vehicles and related maximum
portfolio positions are listed in Appendix A - Summary of Authorized Investments and
Limitations. At least two bids will be required of investments in the authorized
investment vehicles.
Collateral ization will be required for Certificates of Deposits in excess of $100,000.
Collateral will always be held by an independent third party from the institution that
sells the Certificates of Deposit to the City. Evidence of compliance with State
Collateral ization policies must be supplied to the City and retained by the City
Treasurer.
The City of La Quinta Investment Policy shall require that each individual investment
have a maximum maturity of two years unless specific approval is authorized by the
City Council, except the projected annual dollar amount as detailed in Section V, may
be invested in U.S. Treasury bills, notes and bonds maturing between 2 and 5 years. In
addition, the City's investment in the State Local Agency Investment Fund (LAIF) is
allowable as long as the average maturity does not exceed two years, unless specific
approval is authorized by the City Council. The City's investment in Money Market
Mutual funds is allowable as long as the average maturity does not exceed 60 days.
The City of La Quinta Investment Policy will use the six-month U.S. Treasury Bill as a
benchmark when measuring the performance of the investment portfolio.
The Investment Policies shall be adopted by resolution of the La Quinta City Council on
an annual basis. The Investment Policies will be adopted before the end of June of
each year.
This Executive Summary is an overall review of the City of La Quinta Investment
Policies. Reading this summary does not constitute a complete review, which can only
be accomplished by reviewing all the pages.
3
account the investment risk constraints and liquidity needs. Return on
investment is of least importance compared to the safety and liquidity objectives
described above. The core of investments are limited to relatively low risk
securities in anticipation of earning a fair return relative to the risk being
assumed
4. Diversified Portfolio
Within the constraints of safety, liquidity and yield, the City will endeavor to
maintain a diversified portfolio by allocating assets between different types of
investments within policy limitations.
V MAXIMUM MATURITIES
It is the policy of the City of La Quinta to hold securities and other investments of
cash in financial instruments until maturity, thus avoiding the risk that the market
value on investments fluctuates with overall market interest rates. The hold until
maturity policy shall not prevent the sale of a security to minimize loss of principal
when the issuer or backer suffers declining credit worthiness. The hold until
maturity policy requires that the City of La Quinta's investment portfolio is
structured so that sufficient funds are available from maturing investments and
other sources to meet anticipated cash needs. To meet anticipated cash needs, it
is essential that the Treasurer have reasonably accurate, diligently prepared cash
flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five years. For FY 2004/05, the amount of such funds was $5
million. Funds up to that amount may be invested in U.S. Treasury bills, notes and
bonds maturing between 2 and 5 years. For all other funds, investments are
limited to two years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of
California in Probate Code Sections 16045 through 16054..
Section 16053 sets forth the terms of a prudent person which are as follows:
Investments shall be made with judgment and care - under circumstances then
prevailing - which persons of prudence, discretion, and intelligence exercise in the
professional management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the probable income to be
derived.
VII DELEGATION OF AUTHORITY
Authority to manage the City of La Quinta's investment portfolio is derived from the
City Ordinance. Management responsibility for the investment program is delegated to
the City Treasurer, who shall establish written procedures for the operation of the
on
investment program consistent with the Investment Policy. Procedures should include
reference to safekeeping, wire transfer agreements, banking service contracts, and
collateral/depository agreements. Such procedures shall include explicit delegation of
authority to persons responsible for investment transactions. No person may engage
in an investment transaction except as provided under the terms of this Investment
Policy and the procedures established by the City Treasurer. The City Treasurer shall
be responsible for all transactions undertaken and shall establish a system of controls
to regulate the activities of subordinate officials. The City Manager or Assistant City
Manager shall approve in writing all purchases and sales of investments prior to their
execution by the City Treasurer.
Vill CONFLICT OF INTEREST
Investment responsibilities carry added duties of insuring that investments are made
without improper influence or the appearance of improper influence.
Therefore, the City Manager, Assistant City Manager, and the City Treasurer shall
adhere to the State of California Code of Economic Interest and to the following:
► The City Manager, Assistant City Manager, and the City Treasurer shall not
personally or through a close relative maintain any accounts, interest, or private
dealings with any firm with which the City places investments, with the
exception of regular savings, checking and money market accounts, or other
similar transactions that are offered on a non-negotiable basis to the general
public. Such accounts shall be disclosed annually to the City Clerk in
conjunction with annual disclosure statements of economic interest.
► All persons authorized to place or approve investments shall report to the City
Clerk kinship relations with principal employees of firms with which the City
places investments.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City of La Quinta Investment Policy maintains a listing of financial institutions
which are approved for direct investment purposes. In addition a list will also be
maintained of approved broker/dealers selected by credit worthiness, who maintain an
office in the State of California.
1. Broker/Dealers who desire to become bidders for direct investment transactions
must supply the City of La Quinta with the following:
► Current audited financial statements;
► Proof of National Association of Security Dealers Certification;
► Trading resolution;
► Proof of California registration;
► Resume of Financial broker; and
► Completion of the City of La Quinta Broker/Dealer questionnaire which
contains a certification of having read the City of La Quinta Investment
Policy.
7
P.O. Boy: 1504
78-495 CALLS TAN1PICo
LA QUINTA, CALIFORNIA 9` 25"')
City of La Quinta
Statement of Investment Policy
July 1, 2003 through June 30, 2004
Adopted by the City Council on June 17, 2003
GENERAL PURPOSE
(760) 7 7 7-7000
FAX (760) `r 7 7- 7 1 0 1
The general purpose of this document is to provide the rules and standards users must follow
in administering the City of La Quinta cash investments.
II INVESTMENT POLICY
It is the policy of the City of La Quinta to invest public funds in a manner which will provide a
diversified portfolio with safety of principal as the primary objective while meeting daily cash
flow demands with the highest investment return. In addition, the Investment Policy will
conform to all State and local statutes governing the investment of public funds.
III SCOPE
This Investment Policy applies to all cash and investments, except as further detailed in
Section XVII of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of
La Quinta Financing Authority, hereafter referred in this document as the "City". These funds
are reported in the City of La Quinta Comprehensive Annual financial Report (CAFR) and
include:
All funds within the following fund types:
► General
► Special Revenue
► Capital Projects
► Debt Service
► Enterprise
► Internal Service
No. Trust and Agency
No. Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The primary objective, in order of priority, of the City of La Quinta's investment activity shall
be:
4
1. Safety
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio in accordance with
the permitted investments. The objective will be to mitigate credit risk and
interest rate risk.
A. Credit Risk
Credit Risk - is the risk of loss due to the failure of the security issuer or
backer. Credit risk may be mitigated by:
► Limiting investments to the safest types of securities;
► Pre -qualifying the financial institutions, and broker/dealers, which
the City of La Quinta will do business with; and
► Diversifying the investment portfolio so that potential losses on
individual securities will be minimized.
B. Interest Rate Risk
Interest Rate risk is the risk that the market value of securities in the
portfolio will fall due to changes in general interest rates. Interest rate
risk may be mitigated by:
► Structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby avoiding
the need to sell securities on the open market prior to maturity;
and
► By investing operating funds primarily in shorter -term securities.
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated. This is accomplished by
structuring the portfolio so that sufficient liquid funds are available to meet
anticipated demands. Furthermore since all possible cash demands cannot be
anticipated the portfolio should be diversified and consist of securities with
active secondary or resale markets. Securities shall not be sold prior to maturity
with the following exceptions:
► A declining credit quality security could be sold early to minimize loss of
principal;
► Liquidity needs of the portfolio require that the security be sold.
3. Yield
The investment portfolio shall be designed with the objective of attaining a
market rate of return throughout budgetary and economic cycles, taking into
5
The City Treasurer shall evaluate the documentation submitted by the
broker/dealer and independently verify existing reports on file for any firm and
individual conducting investment related business.
The City Treasurer will also contact the following agencies during the
verification process:
► National Association of Security Dealer's Public Disclosure Report File -
1-800-289-9999
► State of California Department of Corporations 1-916-445-3062
All Broker/Dealers selected by the City Treasurer to provide investment services
will be approved by the City Manager subject to City Council approval. The City
Attorney will perform a legal review of the trading resolution/investment
contract submitted by each Broker/Dealer.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and
statement of additional information.
2. Financial Institutions will be required to meet the following criteria in order to
receive City funds for deposit or investment:
A. Insurance - Public Funds shall be deposited only in financial
institutions having accounts insured by "the Federal Deposit
Insurance Corporation (FDIC)
B. Collateral - The amount of City of La Quinta deposits or
investments not insured by the FDIC -shall be 1 10% collateralized
by securities' or 150% mortgages' market values of that amount
of invested funds plus unpaid interest earnings.
C. Disclosure- Each financial institution maintaining invested funds in
excess of the FDIC insured amount shall furnish the City a copy of
the most recent Annual Call Report.
The City shall not invest in excess of the FDIC insured amount in
banking institutions which do not disclose to the city a current
listing of securities pledged for collateral ization in public monies.
X AUTHORIZED INVESTMENTS AND LIMITATIONS
The City Treasurer will be permitted to invest in the investments summarized in the
Appendix A.
E:1
I. STATE OF CALIFORNIA AND CITY OF LA QUINTA LIMITATIONS
As provided in Sections 16429.1, 53601, 53601.1, and 53649 of the
Government Code, the State of California limits the investment vehicles
available to local agencies as summarized in the following paragraphs. Section
53601, as now amended, provides that unless Section 53601 specifies a
limitation on an investment's maturity, no investments with maturities
exceeding five years shall be made. The City of La Quinta Investment Policy
has specified that no investment may exceed two years, except the projected
annual dollar amount, as detailed in Section V, may be invested in U.S. Treasury
bills, notes and bonds maturing between 2 and 5 years.
State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in
Government Code Section 16429.1 and by LAIF procedures, local government
agencies are each authorized to invest a maximum of $40 million per account in
this investment program administered by the California State Treasurer. The
City's investment in the State Local Agency Investment Fund (LAIF) is allowable
as long as the average maturity of its investment portfolio does not exceed two
years, unless specific approval is authorized by the City Council. The City of La
Quinta has two accounts with LAIF. The City of La Quinta Investment Policy
has a limitation of 25% of the portfolio.
U.S. Government and Related Issues - As authorized in Government Code
Sections 53601 (a) through (n) as they pertain to surplus funds, this category
includes a wide variety of government securities which include the following:
• Local government bonds or other indebtedness and State bonds or other
indebtedness. The City of La Quinta Investment Policy does not allow
investments in local and state indebtedness
• U.S. Treasury bills, notes and bonds and Government National Mortgage
Association (GNMA) securities directly issued and backed by the full faith
and credit of the U.S. Government. The City of La Quinta Investment
Policy limits investments in U.S. Treasury issues and GNMA to 100% of
the portfolio.
• U.S. Government instrumentalities and agencies commonly referred to as
government sponsored enterprises (GSEs), issuing securities not backed
as to principal and interests by the full faith and credit of the U.S.
Government. Publicly owned GSEs include Federal National Mortgage
Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC)
and Student Loan Marketing Association (SLMA). Non -publicly owned
GSEs include the Federal Home Loan Bank (FHLB), Federal Farm Credit
Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit
Bank (FICB). The City of La Quinta Investment Policy allows investment
only in securities of FNMA, FHLMC, FHLB and FFCB and has a limitation
of $10 million face amount for each issuer.
0
Bankers' Acceptances - As authorized in Government Code Section 53601 (f),
40% of the portfolio may be invested in Bankers' Acceptances, although no
more than 30% of the portfolio may be invested in Bankers' Acceptances with
any one commercial bank. Additionally, the maturity period cannot exceed 180
days. The City of La Quinta Investment Policy does not allow investment in
Bankers' Acceptances.
Commercial Paper - As authorized in Government Code Section 53601(g), 15%
of the portfolio may be invested in commercial paper of the highest rating (A-1
or P-1) as rated by Moody's or Standard and Poor's, with maturities not to
exceed 270 days. This percentage may be increased to 30% if the dollar
weighted average maturity does not exceed 31 days. There are a number of
other qualifications regarding investments in commercial paper based on the
financial strength of the corporation and the size of the investment. The City of
La Quinta's Investment Policy follows The Government Code with the following
additional limitations: (1) maximum maturity per issue of 90 days and (2) a
maximum of $3 million per issuer.
Negotiable Certificates of Deposit - As authorized in Government Code Section
53601(h), 30% of the portfolio may be invested in negotiable certificates of
deposit issued by commercial banks and savings and loan associations. The
City of La Quinta Investment Policy does not allow investment in Negotiable
Certificates of Deposit.
Repurchase and Reverse Repurchase Agreements - As authorized in Government
Code Section 53601(i), these investment vehicles are agreements between the
local agency and seller for the purchase of government securities to be resold at
a specific date and for a specific amount. Repurchase agreements are generally
used for short term investments varying from one day to two weeks. There is
no legal limitation on the amount of the repurchase agreement. However, the
maturity period cannot exceed one year. The market value of securities
underlying a repurchase agreement shall be at least 102% of the
funds invested and shall be valued at least quarterly.
The City of La Quinta Investment Policy does not allow investment in
Repurchase Agreements.
The term "reverse repurchase agreement" means the sale of securities by the
local agency pursuant to an agreement by which the local agency will
repurchase such securities on or before a specific date and for a specific
amount. As provided in Government Code Section 53635, reverse repurchase
agreements require the prior approval of the City Council. The City of La Quinta
Investment Policy does not allow investment in Reverse Repurchase
Agreements.
Corporate Notes - As authorized in Government Code Section 53601 (j), local
agencies may invest in corporate notes for a maximum period of five years in an
amount not to exceed 30% of the agency's portfolio. The notes must be
10
issued by corporations organized and operating in the United States or by
depository institutions licensed by the United States or any other state and
operating in the United States. The City of La Quinta Investment Policy allows
investment in corporate notes authorized by the Government Code with the
following limitations:
► Maturities shall conform with Section V.
► Eligible notes shall be regularly quoted and traded in the marketplace.
► Eligible notes shall be rated "AA" or "AAA" on the date of acquisition.
► Total investment shall not exceed 15 % of the portfolio, and
► The maximum aggregate investment shall not exceed $3 million face
amount for each issurer.
Diversified Management Companies - As authorized in Government Code
Section 53601(k), local agencies are authorized to invest in shares of beneficial
interest issued by diversified management companies (mutual funds) in an
amount not to exceed 20% of the agency's portfolio. There are a number of
other qualifications and restrictions regarding allowable investments in corporate
notes and shares of beneficial interest issued by mutual funds which include (1)
attaining the highest ranking or the highest letter and numerical rating provided
by not less than two of the three largest nationally recognized rating services, or
(2) having an investment advisor registered with the Securities and Exchange
Commission with not less than five years' experience investing in the securities
and obligations and with assets under management in excess of five hundred
million dollars ($500,000,000). The City of La Quinta Investment Policy only
allows investments in mutual funds that are money market funds maintaining a
par value of $1 per share that invests in direct issues of the U.S. Treasury
and/or US Agency Securities with an average maturity of their portfolio not
exceeding 90 days and the City limits such investments to 20% of the portfolio.
Mortgage -Backed Securities - As authorized in Government code Section
53601(n), local agencies may invest in mortgage -backed securities such as
mortgage pass -through securities and collateralized mortgage obligations for a
maximum period of five years in an amount not to exceed 20% of the agency' s
portfolio. Securities eligible for investment shall have a "A" or higher rating.
The City of La Quinta Investment Policy does not allow investment in Mortgage -
Backed Securities.
Financial Futures and Financial Option Contracts - As authorized in Government
Code Section 53601.1, local agencies may invest in financial futures or option
contracts in any of the above investment categories subject to the same overall
portfolio limitations.
The City of La Quinta Investment Policy does not allow investments in financial
futures and financial option contracts.
Certificates of Deposit - As authorized in Government Code Section 53649,
Certificates of Deposit are fixed term investments which are required to be
11
collateralized from 1 10% to 150% depending on the specific security pledged
as collateral in accordance with Government Code Section 53652. There are
no portfolio limits on the amount or maturity for this investment vehicle.
Collateralization will be required for Certificates of Deposits in excess of the
FDIC insured amount. The type of collateral is limited to City authorized
investments. Collateral will always be held by an independent third party from
the institution that sells the Certificates of Deposit to the City. Evidence of
compliance with State Collateral ization policies must be supplied to the City and
retained by the City Treasurer as follows:
1. Certificates of Deposits Insured by the FDIC.
The City Treasurer may waive collateral ization of a deposit that is
federally insured.
2. Certificates of Deposit in excess of FDIC Limits.
The amount not federally insured shall be 1 10% collateralized securities
or 150% mortgages market value of that amount of invested funds plus
unpaid interest earnings.
The City of La Quinta Investment Policy limits the percentage of Certificates of
Deposit to 60% of the portfolio.
Sweep Accounts - As authorized by the ,City Council, a U.S. Treasury and/or
U.S. Agency Securities Money Market Sweep Account with a $50,000 target
balance may be maintained in conjunction with the checking account.
Derivatives - The City of La Quinta Investment Policy does not allow investment
in derivatives.
XI INVESTMENT POOLS
There are three (3) types of investment pools: 1) state -run pools, 2) pools that are
operated by a political subdivision where allowed by law and the political subdivision is
the trustee i.e. County Pool; and 3) pools that are operated for profit by third parties.
The City of La Quinta Investment Policy has authorized investment with the State of
California's Treasurers Office Local Agency Investment Fund commonly referred to as
LAIF. LAIF was organized in 1977 through State Legislation Section 16429.1, 2 and
3. Each LAIF account is restricted to a maximum investable limit of $40 million. In
addition, LAIF will provide quarterly market value information to the City of La Quinta.
On an annual basis the City Treasurer will submit the Investment Pool Questionnaire to
LAIF.
Also, prior to opening any new Investment Pool account, which would require City
Council approval, the City Treasurer will require the completion of the Investment Pool
Questionnaire.
12
XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to
maintain appropriate evidence of the City's ownership of securities and other eligible
investments. Such custodians shall disburse funds, received from the City for a
purchase, to the broker, dealer or seller only after receiving evidence that the City has
legal, record ownership of the securities. Even though ownership is evidenced in book -
entry form rather than by actual certificates, this procedure is commonly accepted as
the delivery versus payment (DVP) method for the transfer of securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments.
1. Pooled Investments - It is the general policy of the City to pool all available
operating cash of the City of La Quinta, La Quinta Redevelopment Agency and
La Quinta Financing Authority and allocate interest earnings, in the following
order, as follows:
A. Payment to the General Fund of an amount equal to the total annual bank
service charges as incurred by the general fund for all operating funds as
included in the annual operating budget.
B. Payment to the General Fund of a management fee equal to 5 % of the
annual pooled cash fund investment earnings.
C. Payment to each fund of an amount based on the average computerized
daily cash balance included in the common portfolio for the earning
period.
2. Specific Investments - Specific investments purchased by a fund shall incur all
earnings and expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the
following objectives:
► Safeguard assets;
► The orderly and efficient conduct of its business, including adherence to
management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and
► Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance
that the City's assets are safeguarded, it is the intent of the City's internal control to
13
provide a reasonable assurance that management of the investment function meets the
City's objectives.
The internal controls shall address the following:
a. Control of collusion. Collusion is a situation where two or more employees are
working in conjunction to defraud their employer.
b. Separation of transaction authority from accounting and record keeping. By
separating the person who authorizes or performs the transaction from the
people who record or otherwise account for the transaction, a separation of
duties is achieved.
C. Custodial safekeeping. Securities purchased from any bank or dealer including
appropriate collateral (as defined by State Law) shall be placed with an
independent third party for custodial safekeeping.
d. Avoidance of physical delivery securities. Book entry securities are much easier
to transfer and account for since actual delivery of a document never takes
place. Delivered securities must be properly safeguarded against loss or
destruction. The potential for fraud and loss increases with physically delivered
securities.
e. Clear delegation of authority to subordinate staff members. Subordinate staff
members must have a clear understanding of their authority and responsibilities
to avoid improper actions. Clear delegation of authority also preserves the
internal control structure that is contingent on the various staff positions and
their respective responsibilities as outlined in the Segregation of Major
Investment Responsibilities appendices.
f. Written confirmation or telephone transactions for investments and wire
transfers. Due to the potential for error and improprieties arising from telephone
transactions, all telephone transactions shall be supported by written
communications and approved by the appropriate person. Written
communications may be via fax if on letterhead and the safekeeping institution
has a list of authorized signatures. Fax correspondence must be supported by
evidence of verbal or written follow-up.
g. Development of a wire transfer agreement with the City's bank and third party
custodian. This agreement should outline the various controls, security
provisions, and delineate responsibilities of each party making and receiving wire
transfers.
The System of Internal Controls developed by the City, shall be reviewed annually by
the independent auditor in connection with the annual audit of the City of La Quinta's
Financial Statements.
The independent auditor's management letter comments pertaining to cash and
investments, if any, shall be directed to the City Manager who will direct the City
14
Treasurer to provide a written response to the independent auditor's letter. The
management letter comments pertaining to cash and investment activities and the City
Treasurer's response shall be provided to the City's Investment Advisory Board for
their consideration. Following the completion of each annual audit, the independent
auditor shall meet with the Investment Advisory Board and discuss the auditing
procedures performed and the review of internal controls for cash and investment
activities.
XV BENCHMARK
The investment portfolio shall be designed with the objective of obtaining a rate of
return throughout budgetary and economic cycles commensurate with the investment
risk constraints and the cash flow needs of the City. Return on investment is of least
importance compared to safety and liquidity objectives.
The City, of La Quinta Investment Policy will use the six-month U.S. Treasury Bill as a
benchmark when measuring the performance of the investment portfolio.
XVI REPORTING STANDARDS
SB564 section 3 requires a quarterly report to the Legislative Body of Investment
activities. The City of La Quinta Investment Advisory Board has elected to report the
investment activities to the City Council on a monthly basis through the Treasurers
Report. AB 943 requires that the December 31 st and June 301h Treasurers Reports be
sent to the California Debt and Advisory Commission within sixty days of the end of
the quarter.
The City Treasurer shall submit a monthly Treasurers Report to the City Council and
the Investment Advisory Board that includes all cash and investments under the
authority of the Treasurer.
The Treasurers Report shall summarize cash and investment activity and changes in
balances and include the following:
► A certification by City Treasurer.
► A listing of Purchases and sales/maturities of investments.
► Cash and Investments categorized by authorized investments, except for
LAIF which will be provided quarterly and show yield and maturity.
► Comparison of month end actual holdings to Investment Policy
limitations.
► Current year and prior year monthly history of cash and investments for
trend analysis.
► Balance Sheet.
► Distribution of cash and investment balances by fund.
► A comparison of actual and surplus funds.
► A year to date historical cash flow analysis and projection for the next six
months.
► A two-year list of historical interest rates.
15
XV11 FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS
POLICY
The City's Investment Policy does not apply to the following:
• Cash and Investments raised from Conduit Debt Financing;
• Funds held in trust in the City's name in pension or other post -retirement
benefit programs;
• Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects;
• Short or long term loans made to other entities by the City or Agency; and
Short term (Due to/from) or long term (Advances from/to) obligations made
either between the City and its funds or between the City and Agency.
XVIII INVESTMENT OF BOND PROCEEDS
The City's Investment Policy shall govern bond proceeds and bond reserve fund
investments. California Code Section 5922 (d) governs the investment of bond
proceeds and reserve funds in accordance with bond indenture provisions which shall
be structured in accordance with the City's Investment Policy.
Arbitrage Requirement
The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as
required and return excess earnings to the US Treasury from investments of proceeds
of bond issues sold after the effective date of this law. This arbitrage calculations may
be contracted with an outside source to provide the necessary technical assistance to
comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will
be kept segregated from other funds and records will be kept in a fashion to facilitate
the calculations. The City's investment position relative to the new arbitrage
restrictions is to continue pursuing the maximum yield on applicable investments while
ensuring the safety of capital and liquidity. It is the City's position to continue
maximization of yield and to rebate excess earnings, if necessary.
IXX INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) consists of five members of the community that
have been appointed by and report to the City Council. The IAB usually meets on a
monthly basis, but at least quarterly to (1) review at least annually the City's
Investment Policy and recommend appropriate changes; (2) review monthly Treasury
Report and note compliance with the Investment Policy and adequacy of cash and
investments for anticipated obligations; (3) receive and consider other reports provided
by the City Treasurer; (4) meet with the independent auditor after completion of the
annual audit of the City's financial statements, and receive and consider the auditor' s
comments on auditing procedures, internal controls and findings for cash and
investment activities, and; (5) serve as a resource for the City Treasurer on matters
16
such as proposed investments, internal controls, use or change of financial institutions,
custodians, brokers and dealers.
The appendices include City of La Quinta Ordinance 2.70 entitled Investment Advisory
Board Provisions.
XX INVESTMENT POLICY ADOPTION
On an annual basis, the Investment policies will be initially reviewed by the Investment
Advisory Board and the City Treasurer. The Investment Advisory Board will forward
the Investment policies, with any revisions, to the City Manager and City Attorney for
their review and comment. A joint meeting will be held with the Investment Advisory
Board, City Manager, City Attorney, and City Treasurer to review the Investment
policies and comments, prior to submission to the City Council for their consideration.
The Investment Policies shall be adopted by resolution of the City of La Quinta City
Council on an annual basis. The Investment Policies will be adopted before the end of
June of each year.
AB 943 requires that the Investment Policies be sent to the California Debt and
Investment Advisory Commission within sixty days of a change to the Investment
Policy.
17
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Appendix B
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (the"board") is a standing board composed of five (5)
members from the public that are appointed by city council. La Quinta residency is required
except for Board Members currently serving on the Board as of June 30, 2003
C. Background in the investment field and/or related experience is preferred. Background.
information will be required and potential candidates must agree to a background check and
verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City
Council with a disclosure statement which identifies any matters that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
2.70.020 Board meetings.
. The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates
will be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
1. The principal functions of the Board are: (1) review at least annually the City's Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report and note
compliance with the Investment Policy and adequacy of cash and investments for anticipated
obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet
with the independent auditor after completion of the annual audit of the City's financial
statements, and receive and consider the auditor's comments on auditing procedures,
internal controls, and findings for cash and investment activities, and; (5) serve as a resource
for the City Treasurer on matters such as proposed investments, internal controls, use or
change of financial institutions, custodians, brokers and dealers.
2. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
Appendix C
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide
for their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635
of the Government Code, as said sections now read or may hereafter be amended,
from moneys in his custody which are not required for the immediate necessities of the
city and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part),
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys
have been invested pursuant to this chapter, so that the proceeds may, as appropriate,
be applied to the purchase for which the original purchase money may have been
designated or placed in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant'to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
20
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the
terms of any state law, including but not limited to Section 53608 of the Government
Code as it now reads or may hereafter be amended. In accordance with said section,
the city treasurer shall take from the institution or depository a receipt for the
securities so deposited and shall not be responsible for the securities delivered to and
receipted for by the institution or depository until they are withdrawn therefrom by the
city treasurer. (Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in
accordance with Section 36523 and 26524 of the Government code and any other
applicable provisions of law. (Ord. 2 § 1 (part), 1982)
21
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function Responsibilities
Develop formal Investment Policy City Treasurer
Recommend modifications to Investment Policy Investment Advisory Board
Review formal Investment Policy and recommend City Manager and
City Council action City Attorney
Adopt formal Investment Policy City Council
Review Financial Institutions & Select Investments City Treasurer
Approve investments City Manager or
Assistant City Manager
Execute investment transactions City Manager or Treasurer
Confirm wires, if applicable Accounting Manager or
Financial Services Assistant
Record investment transactions in City's Accounting Manager or
accounting records Financial Services Assistant
Investment verification - match broker confirmation City Treasurer and Financial
to City investment records Services Assistant
Reconcile investment records
- to accounting records and bank statements Financial Services Assistant
Reconcile investment records
- to Treasurers Report
of investments Accounting Manager
Security of investments at City Vault
Security of investments Outside City Third Party Custodian
Review internal control procedures External Auditor
22
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, California
2. Custodian Services - Bank of New York, Los Angeles,
California
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Merrill Lynch, Los Angeles, CA
Morgan Stanley, Los Angeles, California
CitiGroup, Newport Beach, CA
5. Government Pool - State of California Local Agency
Investment Fund
City of La Quinta Account
La Quinta Redevelopment Agency
6. Bond Trustees - 1991 City Hall Revenue Bonds - US Bank
1991 RDA Project Area 1 - US Bank
1992 RDA Project Area 2 - US Bank
1994 RDA Project Area 1 -US Bank
1995 RDA Project Area 1 &2 — US Bank
1998 RDA Project Area 1 &2 — US Bank
2001 RDA Project Area 1 — US Bank
2002 RDA Project Area 1 — US Bank
2003 RDA Project Area 1 — US Bank
Assessment Districts — US Bank
No Changes to this listing may be made without City Council approval
23
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm:
2. Address:
0
0
Telephone: ( )
Broker's Representative to the City (attach resume):
Name:
Title:
Telephone: ( )
5. Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
6. List all personnel who will be trading with or quoting securities to City employees
(attach resume)
Name:
Title:
Telephone: ( ) ( )
7. Which of the above personnel have read the City's Investment Policy?
8. Which instruments are offered regularly by your local office? (Must equal
100%)
% U.S. Treasuries
BA's
% Commercial Paper
% CD's
% Mutual Funds
% Agencies (specify):
24
% Repos
% Reverse Repos
% CMO's
% Derivatives
% Stocks/Equities
% Other (specify) :
9. References -- Please identify your most directly comparable public sector
clients in our geographical area.
Entity
Contact
Telephone ( )
Client Since
Entity
Contact
Telephone
Client Since
10. Have any of your clients ever sustained a loss on a securities transaction arising
from a misunderstanding or misrepresentation of the risk characteristics of the
instrument? If so, explain.
12.
Has your firm or your local office ever been subject to a regulatory or state/
federal agency investigation for alleged improper, fraudulent, disreputable or
unfair activities related to the sale of securities? Have any of your employees
been so investigated? If so,
explain.
Has a client ever claimed in writing that you were responsible for an
investment loss? Yes No If yes, please provide
action taken
Has a client ever claimed in writing that your firm was responsible for an
investment loss? Yes No If yes, please provide
action taken
25
Do you have any current or pending complaints that are unreported to the
NASD?
Yes No If yes, please provide action taken
Does your firm have any current, or pending complaints that are unreported
to the NASD? Yes No If yes, please provide action
taken
13. Explain your clearing and safekeeping procedures, custody and delivery process.
Who audits these fiduciary responsibilities?
Latest Audit Report Date
14. How many and what percentage of your transactions failed.
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits for the
City of La Quinta.
16.
Is your firm a member in the S.I.P.C. insurance program. Yes
If yes, explain primary and excess coverage and carriers.
17. What portfolio information, if any, do you require from your clients?
26
No
18. What reports and transaction confirmations or any other research publications will
the City receive?
19. Does your firm offer investment training to your clients? Yes No
20. Does your firm have professional liability insurance. Yes No
If yes, please provide the insurance carrier, limits and expiration date.
21.
22.
Please list your NASD Registration Number
Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and Department
23. Do you maintain an office in California. Yes No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
❑ Latest audited financial statements.
❑ Samples of reports, transaction confirmations and any other
research/publications the City will receive.
❑ Samples of research reports and/or publications that your firm regularly
provides to clients.
❑ Complete schedule of fees and charges for various transactions.
'CERTIFICATION'
CERTIFICATION'
I hereby certify that I have personally read the Statement of Investment Policy of the City
of La Quinta, and have implemented reasonable procedures and a system of controls
designed to preclude imprudent investment activities arising out of transactions
conducted between our firm and the City of La Quinta. All sales personnel will be
routinely informed of the City's investment objectives, horizons, outlooks, strategies and
risk constraints whenever we are so advised by the City. We pledge to exercise due
diligence in informing the City of La Quinta of all foreseeable risks associated with
financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all
background checks.
NN
Under penalties of perjury, the responses to this questionnaire are true and accurate to
the best of my knowledge.
Broker
Date_
Sales
Date
Representative
Manager and/or
Title
Managing
Title
Partner*
Appendix G
INVESTMENT POOL QUESTIONNAIRE
Note: This Investment Pool Questionnaire was developed by the Government Finance
Officers Association (GFOA).
Prior to entering a pool, the following questions and issues should be considered.
SECURITIES
Government pools may invest in a broader range of securities than your entity invests in.
It is important that you are aware of, and are comfortable with, the securities the pool
buys.
1. Does the pool provide a written statement of Investment Policy and objectives?
2. Does the statement contain:
a. A description of eligible investment instruments?
b. The credit standards for investments?
c. The allowable maturity range of investments?
d. The maximum allowable dollar weighted average portfolio maturity?
e. The limits of portfolio concentration permitted for each type of security?
f. The policy on reverse repurchase agreements, options, short sales and futures?
3. Are changes in the policies communicated to the pool participants?
4. Does the pool contain only the types of securities that are permitted by your
Investment Policy?
INTEREST
Interest is not reported in a standard format, so it is important that you know how
interest is quoted, calculated and distributed so that you can make comparisons with
other investment alternatives.
Interest Calculations
1. Does the pool disclose the following about yield calculations:
a. The methodology used to calculate interest? (Simple maturity, yield to maturity,
etc.)
b. The frequency of interest payments?
c. How interest is paid? (Credited to principal at the end of the month, each quarter;
mailed?)
d. How are gains/losses reported? Factored monthly or only when realized?
29
REPORTING
1. Is the yield reported to participants of the pool monthly? (If not, how often?)
2. Are expenses of the pool deducted before quoting the yield?
3. Is the yield generally in line with the market yields for securities in which you usually
invest?
4. How often does the pool report, and does that report include the market value of
securities?
SECURITY
The following questions are designed to help you safeguard your funds from loss of
principal and loss of market value.
1. Does the pool disclose safekeeping practices?
2. Is the pool subject to audit by an independent auditor?
3. Is a copy of the audit report available to participants?
4. Who makes the portfolio decisions?
5. How does the manager monitor the credit risk of the securities in the pool?
6. Is the pool monitored by someone on the board of a separate neutral party external to
the investment function to ensure compliance with written policies?
7. Does the pool have specific policies with regards to the various investment vehicles?
a. What are the different investment alternatives?
b. What are the policies for each type of investment?
8. Does the pool mark the portfolio to its market value?
9. Does the pool disclose the following about how portfolio securities are valued:
a. The frequency with which the portfolio securities are valued?
b. The method used to value the portfolio (cost, current value, or some other
method)?
30
OPERA TIONS
The answers to these questions will help you determine whether this pool meets your
operational requirements:
1. Does the pool limit eligible participants?
2. What entities are permitted to invest in the pool?
3. Does the pool allow multiple. accounts and sub -accounts?
4. Is there a minimum or maximum account size?
5. Does the pool limit the number of transactions each month? What is the number
of transactions permitted each month?
6. Is there a limit on transaction amounts for withdrawals and deposits?
a. What is the minimum and maximum withdrawal amount permitted?
b. What is the minimum and maximum deposit amount permitted?
7. How much notice is required for withdrawals/deposits?
8. What is the cutoff time for deposits and withdrawals?
9. Can withdrawals be denied?
10. Are the funds 100% withdrawable at anytime?
11. What are the procedures for making deposits and withdrawals?
a. What is the paperwork required, if any?
b. What is the wiring process?
12. Can an account remain open with a zero balance?
13. Are confirmations sent following each transaction?
STA TEMENTS
It is important for you and the agency's trustee (when applicable), to receive statements
monthly so the pool's records of your activity and holding are reconciled by you and
your trustee.
31
1. Are statements for each account sent to participants?
a. What are the fees?
b. How often are they passed?
c. How are they paid?
d. Are there additional fees for wiring funds (what is the fee)?
2. Are expenses deducted before quoting the yield?
QUESTIONS TO CONSIDER FOR BOND PROCEEDS
It is important to know (1) whether the pool accepts bond proceeds and (2) whether the
pool qualifies with the U.S. Department of the Treasury as an acceptable commingled
fund for arbitrage purposes.
1. Does the pool accept bond proceeds subject to arbitrage rebate?
2. Does the pool provide accounting and investment records suitable for proceeds of
bond issuance subject to arbitrage rebate?
3. Will the yield calculation reported by the pool be acceptable to the IRS or will it have
to be recalculated?
4. Will the pool accept transaction instructions from a trustee?
5. Are you allowed to have separate accounts for each bond issue so that you do not
commingle the interest earnings of funds subject to rebate with funds not subject to
regulations?
32
Appendix H
GLOSSARY
(Adopted from the Municipal Treasurers Association)
The purpose of this glossary is to provide the reader of the City of La Quinta investment
policies with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or
Government -sponsored enterprises.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill of
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of
the bill, as well as the issuer.
BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a
bid.) See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a
certificate. Large -denomination CD's are
typically negotiable.
COLLATERAL: Securities, evidence of deposit or
other property which a borrower pledges to
secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits
of public monies.
COMMERCIAL PAPER: Short-term unsecured
promissory notes issued by a corporation to raise
working capital. These negotiable instruments
are purchased at a discount to par value or at par
value with interest bearing. Commercial paper is
issued by corporations such as General Motors
Acceptance Corporation, IBM, Bank America, etc.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR): The official annual report for the City of
La Quinta. It includes five combined statements
33
for each individual fund and account group
prepared in conformity with GAAP. It also
includes supporting schedules necessary to
demonstrate compliance with finance -related legal
and contractual provisions, extensive introductory
material, and a detailed Statistical Section.
CONDUIT FINANCING: A form of Financing in
which a government or a government agency
lends its name to a bond issue, although it is
acting only as a conduit between a specific project
and bond holders. The bond holders can look only
to the revenues from the project being financed
for repayment and not to the government or
agency whose name appears on the bond.
COUPON: (a) The annual rate of interest that a
bond's issuer promises to pay the bondholder on
the bond's face value. (b) A certificate attached
to a bond evidencing interest due on a payment
date.
DEALER: A dealer, as opposed to a broker, acts as
a principal in all transactions, buying and selling
for his own account.
DEBENTURE: A bond secured only by the general
credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two
methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
versus payment is delivery of securities with an
exchange of money for the securities. Delivery
versus receipt is delivery of securities with an
exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or
(2) financial contracts based upon notional
amounts whose value is derived from an
underlying index or security (interest rates,
foreign exchange rates, equities or commodities).
DISCOUNT: The difference between the cost
price of a security and its maturity when quoted
at lower than face value. A security selling
below original offering price shortly after sale also
is considered to be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering
independent returns.
are issued with maturities of less than one
year and interest is paid at maturity.
3. FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The
minimum denomination is $1,000. They carry
semi-annual coupons. Interest is calculated on
a 360-day, 30 day month basis.
4.
FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals, 5.
e.g., S&L's, small business firms, students,
farmers, farm cooperatives, and exporters.
1. FNMAs (Federal National Mortgage
Association) - Used to assist the home
mortgage market by purchasing mortgages
insured by the Federal Housing
Administration and the Farmers Home
Administration, as well as those guaranteed by
the. Veterans Administration. They are issued in
various maturities and in minimum denominations
of $10,000. Principal and Interest is paid
monthly.
2. FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide
liquidity and home mortgage credit to savings
and loan associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are
issued irregularly for various maturities. The
minimum denomination is $5,000. The notes
34
FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and the
national agricultural industry. They are issued
monthly with three- and six-month maturities.
The FFCB issues larger issues (one to ten
year) on a periodic basis. These issues are
highly liquid.
FICBs (Federal Intermediate Credit bank
Debentures) - Loans to lending institutions
used to finance the short-term and
intermediate needs of farmers, such as
seasonal production. They are usually issued
monthly in minimum denominations of $3,000
with a nine -month maturity. Interest is
payable at maturity and is calculated on a
360-day, 30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
established in 1970 to provide a secondary
market for conventional home mortgages.
Morgages are purchased solely from the
Federal home Loan Bank System member
lending institutions whose deposits are insured
by agencies of the United States Government.
They are issued for various maturities and in
minimum denominations of $10,000. Principal
and Interest is paid monthly. Other federal
agency issues are Small Business
Administration notes (SBAs), Government
National Mortgage Association notes
(GNMAs), Tennessee Valley Authority notes
(TVAs), and Student Loan Association notes
(SALLIE-MAEs).
FEDERAL DEPOSITOR INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $100,000
per deposit.
FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is
currently pegged by the Federal Reserve through
open -market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks
(currently 12 regional banks) which lend funds
and provide correspondent banking services to
member commercial banks, thrift institutions,
credit unions and insurance companies. The
mission of the FHLBs is to liquefy the housing
related assets of its members who must purchase
stock in their district Bank.
FEDERAL OPEN MARKET COMMITTEE (FOMC):
Consists of seven members of the Federal
Reserve Board and five of the twelve Federal
Reserve Bank Presidents. The President of the
New York Federal Reserve Bank is a permanent
member, while the other Presidents serve on a
rotating basis. The Committee periodically meets
to set Federal Reserve guidelines regarding
purchases and sales of Government Securities in
the open market as a means of influencing the
volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of
the United States created by Congress and
consisting of a seven member Board of
Governors in Washington, D.C., 12 regional
banks and about 5,700 commercial banks that
are members of the system.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed
by GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations,
35
and other institutions. Security holder is protected
by full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA, VA
or FMHM mortgages. The term "passthrough" is
often used to describe Ginnie Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There is
no minimum investment period and the minimum
transaction is $5,000, in multiples of $1,000
above that, with a maximum balance of
$30,000,000 for any agency. The City is
restricted to a maximum of ten transactions per
month. It offers high liquidity because deposits
can be converted to cash in 24 hours and no
interest is lost. All interest is distributed to those
agencies participating on a proportionate share
basis determined by the amounts deposited and
the length of time they are deposited. Interest is
paid quarterly. The State retains an amount for
reasonable costs of making the investments, not
to exceed one -quarter of one percent of the
earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or
sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between
the parties to repurchase --reverse repurchase
agreements that establishes each party' s rights in
the transactions. A master agreement will
often specify, among other things, the right of the
buyer -lender to liquidate the underlying securities
in the vent of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-
term debt instruments (bills, commercial paper,
bander' acceptances, etc.) are issued and
traded.
OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities
in the open market by the New York Federal
Reserve Bank as directed by the FOMC in order
to influence the volume of money and credit in
the economy. Purchases inject reserves into the
bank system and stimulate growth of money and
credit; sales have the opposite effect. Open
market operations are the Federal Reserve's
most important and most flexible monetary policy
tool.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer,
including Bond Proceeds.
PRIMARY DEALER: A group of government
securities dealers who submit daily reports of
market activity and depositions and monthly
financial statements to the Federal Reserve Bank
of ,New York and are subject to its informal
oversight. Primary dealers include Securities and
Exchange Commission (SEC) -registered securities
broker -dealers, banks and a few unregulated
firms.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from
the payment of any sales or compensating use or
ad valorem taxes under the laws of this state,
which has segregated for the benefit of the
011
commission eligible collateral having a value of not
less than its maximum liability and which has been
approved by the Public Deposit Protection
Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A
repurchase agreement is a short-term investment
transaction. Banks buy temporarily idle funds
from a customer by selling U.S. Government or
other securities with a contractual agreement to
repurchase the same securities on a future date.
Repurchase agreements are typically for one to
ten days in maturity. The customer receives
interest from the bank. The interest rate reflects
both the prevailing demand for Federal funds and
the maturity of the repo. Some banks will execute
repurchase agreements for a minimum of
$100,000 to $500,000, but most banks have a
minimum of $1,000,000.
REVERSE REPURCHASE AGREEMENTS (RRP or
RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security "buyer" in effect lends the "seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered
by banks for a fee whereby securities and
valuables of all types and descriptions are held in
the bank's vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors
in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB,
FNMAS, SLMA, etc.) And Corporations which
have imbedded options (e.g., call features, step-
up coupons, floating rate coupons, derivative -
based returns) into their debt structure. Their
market performance is impacted by the
fluctuation of interest rates, the volatility of the
imbedded options and shifts in the Shape of the
yield curve.
SURPLUS FUNDS: Section 53601 of the
California Government Code defines surplus
funds as any money not required for immediate
necessities of the local agency. The City has
defined immediate necessities to be payment due
within one week. .
TREASURY BILLS: A non -interest bearing
discount security issued by the U.S. Treasury to
finance the national debt. Most bills are issued
to mature in three months, six months or one
year.
TREASURY BONDS: Long-term coupon -bearing
U.§. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities of more than 10 years.
TREASURY NOTES: Medium -term coupon -bearing
U.S. Treasury securities issued as direct
obligations of the U.S. Government and having
initial maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker -dealers in
securities maintain a maximum ratio of
indebtedness to liquid capital of 15 to 1; also
called net capital rule and net capital ratio.
37
Indebtedness covers all money owed to a firm,
including margin loans and commitments to
purchase securities, one reason new public issues
are spread among members of underwriting
syndicates. Liquid capital includes cash and
assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State
of California has adopted this Act. The Act
contains the following sections: duty of care,
diversification, review of assets, costs,
compliance determinations, delegation of
investments, terms of prudent investor rule, and
application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY is
the current income yield minus any premium
above par of plus any discount from par in
purchase price, with the adjustment spread over
the period from the date of purchase to the date
of maturity of the bond.
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: February 9, 2005
TITLE:
Month End Cash Report - January 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.
At last months meeting Board Member Moulin inquired about the budget salary and
fringe benefit budget to actual comparison variance. Staff has investigated this and
found that the budget salary amount was based upon three periods instead of two.
RECOMMENDATION:
Information item only.
John M. Falcoher, Finance Director
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FRB: H.15--Selected Interest Rates, Web -Only Daily Update --January 28, 2005
Page 1 of 4
Federal Reserve Statistical Release
H.15
Selected Interest Rates (Daily)
`kit, to Content
Release Date: January 28, 2005
Weekly._release__ dates.._ and announcelnents. I Historical__ data I About
Daily update Other formats: Screen reader I ASCII
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday
H.15 DAILY UPDATE: WEB RELEASE ONLY For immediate release
SELECTED INTEREST RATES January 28, 2005
Yields in percent per annum
2005
2005
2005
2005
Jan
Jan
Jan
Jan
Instruments
24
25
26
27
Federal funds (effective) 1 2 3
2.26
2.29
2.33
2.39
Commercial paper 3 4 5
Nonfinancial
1-month
2.40
2.39
2.43
2.42
2-month
2.46
2.46
2.47
2.49
3-month
2.56
Financial
1-month
2.42
2.42
2.44
2.46
2-month
2.50
2.52
2.53
2.50
3-month
2.61
2.61
2.62
2.65
CDs (secondary market) 3 6
1-month
2.49
2.49
2.50
2.54
3-month
2.65
2.66
2.67
2.69
6-month
2.87
2.88
2.90
2.91
Eurodollar deposits (London) 3 7
1-month
2.47
2.48
2.48
2.52
3-month
2.63
2.63
2.65
2.67
6-month
2.84
2.96
2.88
2.88
Bank prime loan 2 3 8
5.25
5.25
5.25
5.25
Discount window primary credit 2 9
3.25
3.25
3.25
3.25
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
1.97
2.09
2.12
2.11
3-month
2.34
2.36
2.37
2.40
6-month
2.62
2.63
2.64
2.65
Treasury constant maturities
Nominal 10
1-month
2.05
2.13
2.16
2.16
3-month
2.37
2.39
2.41
2.44
6-month
2.69
2.70
2.71
2.72
1-year
2.86
2.88
2.90
2.91
2-year
3.20
3.23
3.27
3.28
3-year
3.36
3.39
3.43
3.45
5-year
3.65
3.71
3.73
3.75
7-year
3.90
3.97
3.98
4.00
10-year
4.14
4.20
4.21
4.22
http://www.federalreserve.gov/Releases/H 15/update/
3
1 /28/2005
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --January 28, 2005
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
4.65
4.72
4.72
4.73
1.13
1.16
1.15
1.16
1.39
1.44
1.43
1.43
1.68
1.74
1.72
1.72
1.90
2.00
1.99
1.99
1.87
1.98
1.97
1.97
3.21
3.24
3.25
3.27
3.55
3.58
3.59
3.63
3.75
3.78
3.78
3.83
3.91
3.94
3.94
3.99
4.04
4.08
4.08
4.12
4.27
4.30
4.31
4.34
4.53
4.55
4.57
4.59
5.02
5.03
5.05
5.05
5.25
5.32
5.30
5.30
5.91
5.98
5.97
5.97
4.37
5.66
FOOTNOTES
1. The daily effective federal funds rate is a weighted average of
rates on brokered trades.
2. Weekly figures are averages of 7 calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in
the month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
S. Interest rates interpolated from data on certain commercial paper
trades settled by The Depository Trust Company. The trades
represent sales of commercial paper by dealers or direct
issuers to investors (that is, the offer side). The 1-,
2-, and 3-month rates are equivalent to the 30-, 60-, and
90-day dates reported on the Board's Commercial Paper Web page
(www.federalreserve.gov/releases/cp).
6. An average of dealer offering rates on nationally traded certificates of deposit.
7. Bid rates for Eurodollar deposits collected around 9:30
a.m. Eastern time.
8. Rate posted by a majority of top 25 (by assets in domestic
offices) insured U.S.-chartered commercial banks. Prime is one
of several base rates used by banks to price short-term business
loans.
9. The rate charged for discounts made and advances extended under
the Federal Reserve's primary credit discount window program, which
became effective January 9, 2003. This rate replaces that for
adjustment credit, which was discontinued after January 8, 2003. For
further information, see
4
http://www.federalreserve.gov/Releases/H 15/update/ 1 /28/2005
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --January 28, 2005
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
Accessibil tv I Contact Us
5
http://www.federalreserve.gov/Releases/H15/update/ 1 /28/2005
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --January 28, 2005 Page 4 of
Last update: January 28, 2005
6
http://www.federalreserve.gov/Releases/H 15/update/ 1 /28/2005
Bureau of the Public Debt: Recent Treasury Bill Auction Results Pagel of 2
Recent Treasury Bill Auction Results
Price
Issue Maturity
Term
Discount
Investment
Per
CUSIP
Date Date
Rate %
Rate %
$100
28-DAY 01-27-2005 02-24-2005
2.030
2.061
99.842111
912795SB8
91-DAY 01-27-2005 04-28-2005
2.320
2.366
99.413556
912795SL6
182-DAY 01-27-2005 07-28-2005
2.610
2.682
98.680500
912795VJ7
28-DAY 01-20-2005 02-17-2005
1.910
1.939
99.851444
912795SAO
91-DAY 01-20-2005 04-21-2005
2.360
2.407
99.403444
912795SK8
182-DAY 01-20-2005 07-21-2005
2.635
2.708
98.667861
912795VH1
5-DAY 01-13-2005 01-18-2005
2.040
2.069
99.971667
912795TG6
28-DAY 01-13-2005 02-10-2005
1.980
2.011
99.846000
912795RZ6
91-DAY 01-13-2005 04-14-2005
2.330
2.376
99.411028
912795SJ1
182-DAY 01-13-2005 07-14-2005
2.600
2.671
98.685556
912795VG3
28-DAY 01-06-2005 02-03-2005
2.000
2.031
99.844444
912795RY9
91-DAY 01-06-2005 04-07-2005
2.275
2.320
99.424931
912795SH5
182-DAY 01-06-2005 07-07-2005
2.560
2.630
98.705778
912795VF5
15-DAY 01-03-2005 01-18-2005
2.090
2.121
99.912917
912795TG6
28-DAY 12-30-2004 01-27-2005
1.840
1.868
99.856889
912795RX1
91-DAY 12-30-2004 03-31-2005
2.225
2.269
99.437569
912795SG7
182-DAY 12-30-2004 06-30-2005
2.560
2.630
98.705778
912795SV4
28-DAY 12-23-2004 01-20-2005
1.880
1.909
99.853778
912795RW3
91-DAY 12-23-2004 03-24-2005
2.180
2.223
99.448944
912795SF9
182-DAY 12-23-2004 06-23-2005
2.465
2.531
98.753806
912795SU6
28-DAY 12-16-2004 01-13-2005
1.960
1.990
99.847556
912795RV5
91-DAY 12-16-2004 03-17-2005
2.200
2.243
99.443889
912795SE2
182-DAY 12-16-2004 06-16-2005
2.425
2.489
98.774028
912795ST9
28-DAY 12-09-2004 01-06-2005
2.050
2.082
99.840556
912795RU7
91-DAY 12-09-2004 03-10-2005
2.210
2.253
99.441361
912795SD4
182-DAY 12-09-2004 06-09-2005
2.380
2.442
98.796778
912795SS1
8-DAY 12-07-2004 12-15-2004
1.980
2.008
99.956000
912795TF8
12-DAY 12-03-2004 12-15-2004
1.960
1.989
99.934667
912795TF8
28-DAY 12-02-2004 12-30-2004
2.035
2.067
99.841722
912795RTO
91-DAY 12-02-2004 03-03-2005
2.195
2.238
99.445153
912795SC6
182-DAY 12-02-2004 06-02-2005
2.395
2.458
98.789194
912795SR3
14-DAY 12-01-2004 12-15-2004
1.950
1.979
99.924167
912795TF8
27-DAY 11-26-2004 12-23-2004
1.950
1.980
99.853750
912795RS2
90-DAY 11-26-2004 02-24-2005
2.155
2.197
99.461250
912795SB8
181-DAY 11-26-2004 05-26-2005
2.365
2.427
98.810931
912795SQ5
23-DAY 11-23-2004 12-16-2004
1.925
1.954
99.877014
912795RR4
5-DAY 11-18-2004 11-23-2004
1.890
1.917
99.973750
912795TE1
91-DAY 11-18-2004 02-17-2005
2.075
2.115
99.475486
912795SAO
7
http://wwws.publicdebt.treas.gov/AI/OFBills
1/28/2005
Bureau of the Public Debt : Recent Treasury Bill Auction Results Page 2 of 2
182-DAY 11-18-2004 05-19-2005 2.280 2.339 98.847333 912795SP7
27-DAY 11-12-2004 12-09-2004 1.900 1.929 99.857500 912795RQ6
Effective with the 11 /2/98 auction, all bills are auctioned using the single -priced method.
Return to Auction Information Page
Privacy & Security Notices I Terms & Conditions I Accessibility I Data Quality
Last Updated January 28, 2005 4: 37; 54 PM EST
8
http://wwws.publicdebt.treas.gov/AI/OFBills 1/28/2005
Phil Angelides, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (WAIF)
PMIA Performance Report
corporal
3.0
Commercial
Paper
14.52%
Time Depos
12.06%
i n�
LAIF Performance Report
Quarter Ending 12/31/04
Apportionment Rate: 2.00%
Earnings Ratio: .00005477200490654
Fair Value Factor: .997950519
PMIA Average Monthly Effective Yields
October 2004 1.890%
November 2004 2.003%
December 2004 2.134%
Pooled Money Investment Account
Portfolio Composition
$53.5 Billion
12/31 /04
Loans Treasuries
9.15% 11.90%
CDs/BNs
22.04%
ages
Agencies
26.06%
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10
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item B
Meeting Date: February 9, 2005
TITLE:
Pooled Money Investment Board Report
for November 2004
BACKGROUND:
The Pooled Money Investment Board Report for November 2004is included in the
agenda packet.
RECOMMENDATION:
Receive & File
John M. Falconer, Finance Director
Philip Angelides
November 2004
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
November 2004
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS........................................................ 16
BANK DEMAND DEPOSITS .......................................... 28
POOLED MONEY INVESTMENT BOARD DESIGNATION... 29
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF NOVEMBER 2004 WITH NOVEMBER 2003
(DOLLARS IN THOUSANDS)
NOVEMBER 2004 NOVEMBER 2003 ' CHANGE
Average Daily Portfolio $ 51,761,375 $ 53,495,662 $-1,734,287
Accrued Earnings $ 85,202 68,912 +16,290
Effective Yield 2.003 1.572 +0.431
f Average Life -Month End (In Days) 191 202 -11
Total Security Transactions
Amount
$ 20,164,724
$
14,997,081
$
+5,167,643
Number
424
322
+102
Total Time Deposit Transactions
Amount
$ 2,205,400
$
1,616,800
$
+588,600
Number
94
69
+25
Average Workday Investment Activity
$ 1,177,375
$
977,287
$
+200,088
Prescribed Demand Account Balances
For Services
$ 635,442
$
1,189,416
$
-553,974
For Uncollected Funds
$ 190,413
$
173,353
$
+17,060
1
PHILANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
November 30, 2004
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
1,366,649
2.66
-1.32
Bonds
0
0.00
0.00
Notes
4,795,501
9.32
-0.88
Strips
0
0.00
0.00
Total Government
$
6,162,150
11.98
-2.20
Federal Agency Coupons
$
5,913,666
11.50
+1.85
Certificates of Deposit
10,320,052
20.07
+1.57
Bank Notes
1,174,961
2.28
+1.03
Bankers" Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
5,813,317
11.30
-3.78
Time Deposits
6,336,795
12.32
+0.20
GNMAs
355
0.00
0
Commercial Paper
9,247,502
17.98
+1.18
FHLMC/Remics
329,497
0.64
-0.02
Corporate Bonds
1,702,148
3.32
+0.12
AB 55 Loans
4,524,855
8.80
+0.24
GF Loans
0
0.00
0
Reversed Repurchases
-99,125
-0.19
+0.19
Total (All Types)
$
MINOW
51,426,163
100.00
INVESTMENT ACTIVITY
NOVEMBER 2004
OCTOBER 2004
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
424 $
20,164,724
454
$ 21,612,852
Other
27
455,295
21
138,218
Time Deposits
94
2,205,400
146
3,470,690
Totals
645 $
22,825,419
621
$ 25,221,760
PMIA Monthly Average Effective Yield
2.003
1.890
Year to Date Yield Last Day of Month
1.786
1.733
2
Commercial
Paper
17.98%
Tin
Depc
12.3
Pooled Money Investment Account
Portfolio Composition
$51.4 Billion
11/30/04
Loans Reverses
a Treasuries
Corporate 8.80% -0.19 /0 11 98%
CD's/BN's
22.35%
3
ges
YO
Agencies
22.80%
■ Treasuries
Cl Mortgages
Agencies
■ CD's/BN's
E]Time Deposits
El Bankers Acceptances
■ Repo
■ Commercial Paper
Corporate Bonds
Loans
■ Reverses
11/01/04 REDEMPTIONS
CP
W/F
11/01/04
1.810
50,000
3
7,541.67
1.835
CP
W/F
11/01/04
1.810
50,000
3
7,541.67
1.835
CP
W/F
11/01/04
1.810
50,000
3
7,541.67
1.835
CP
W/F
11/01/04
1.810
50,000
3
7,541.67
1.835
CP
W/F
11/01/04
1.810
50,000
3
7,541.67
1.835
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
GECC
11/01/04
1.830
50,000
3
7,625.00
1.856
CP
NCAT
11/01/04
1.730
50,000
11
26,430.56
1.755
CP
NCAT
11/01/04
1.730
50,000
11
26,430.56
1.755
CP
NCAT
11/01/04
1.730
50,000
11
26,430.56
1.755
CP
NCAT
11/01/04
1.730
50,000
11
26,430.56
1.755
CP
CITICORP
11/01/04
1.780
24,000
12
14,240.00
1.806
CP
CITICORP
11/01/04
1.780
50,000
12
29,666.67
1.806
CP
W/F
11/01/04
1.760
50,000
12
29,333.33
1.786
CP
W/F
11/01/04
1.760
50,000
12
29,333.33
1.786
CP
NCAT
11/01/04
1.590
45,000
126
250,425.00
1.621
CP
TOYOTA
11/01/04
1.530
50,000
136
289, 000.00
1.560
CP
TOYOTA
11/01/04
1.530
50,000
136
289, 000.00
1.560
DISC NOTE
FHLMC
11/01/04
1.590
50,000
125
276,041.67
1.621
DISC NOTE
FHLMC
11/01/04
1.590
50,000
125
276,041.67
1.621
DISC NOTE
FHLMC
11/01/04
1.550
50,000
130
279,861.11
1.580
DISC NOTE
FHLMC
11/01/04
1.550
50,000
130
279,861.11
1.580
DISC NOTE
FHLMC
11/01/04
1.550
50,000
136
292,777.78
1.581
DISC NOTE
FHLMC
11/01/04
1.550
50,000
136
292,777.78
1.581
DISC NOTE
FHLMC
11/01/04
1.550
50,000
136
292,777.78
1.581
DISC NOTE
FHLMC
11/01/04
1.550
50,000
136
292,777.78
1.581
11/01/04 PURCHASES
BN
WORLD
2.010%
01/03/05
2.030
50,000
BN
WORLD
2.010%
01/03/05
2.030
50,000
BN
WORLD
2.010%
01/03/05
2.030
50,000
BN
WORLD
2.010%
01/03/05
2.030
50,000
CD
RABO
2.125%
03/01/05
2.120
50,000
CD
RABO
2.125%
03/01/05
2.120
50,000
CD
RABO
2.125%
03/01/05
2.120
50,000
CD
RABO
2.125%
03/01/05
2.120
50,000
CD
RB SCOT
2.120%
03/02/05
2.120
50,000
CD
RB SCOT
2.120%
03/02/05
2.120
50,000
CD
RB SCOT
2.120%
03/02/05
2.120
50,000
CD
STNRD CH
2.150%
03/30/05
2.150
50,000
CD
STNRD CH
2.150%
03/30/05
2.150
50,000
CD
CIBC
2.160%
03/30/05
2.160
50,000
CD
CIBC
2.160%
03/30/05
2.160
50,000
CP
TOYOTA
11/08/04
1.760
50,000
4
11/01/04 PURCHASES (continued)
CP
TOYOTA
11/08/04
1.760
50,000
CP
W/F
11/09/04
1.750
50,000
CP
W/F
11/09/04
1.750
50,000
CP
W/F
11/09/04
1.750
50,000
CP
W/F
11/09/04
1.750
50,000
CP
W/F
11/15/04
1.840
50,000
CP
W/F
11/15/04
1.840
50,000
CP
W/F
11/15/04
1.840
50,000
CP
W/F
11/15/04
1.840
50,000
CP
GECC
01/03/05
2.050
50,000
CP
GECC
01/03/05
2.050
50,000
CP
GECC
01/03/05
2.050
50,000
CP
GECC
01/03/05
2.050
50,000
CP
GECC
03/01/05
2.120
50,000
CP
GECC
03/01/05
2.120
50,000
CP
GECC
03/02/05
2.120
50,000
CP
GECC
03/02/05
2.120
50,000
CP
CITI GLOBAL
03/02/05
2.120
50,000
CP
CITI GLOBAL
03/02/05
2.120
50,000
CP
CITI GLOBAL
03/02/05
2.120
50,000
CP
CITI GLOBAL
03/02/05
2.120
50,000
CP
FCAR
03/21/05
2.150
50,000
CP
FCAR
03/21/05
2.150
50,000
11/02/04 REDEMPTIONS
CP
CITI GLOBAL
11/02/04
1.820
50,000
4
10,111.11
1.846
CP
CITI GLOBAL
11/02/04
1.820
50,000
4
10,111.11
1.846
CP
CITI GLOBAL
11/02/04
1.820
50,000
4
10,111.11
1.846
CP
CITI GLOBAL
11/02/04
1.820
50,000
4
10,111.11
1.846
CP
NCAT
11/02/04
1.730
50,000
12
28,833.33
1.755
CP
NCAT
11/02/04
1.730
50,000
12
28,833.33
1.755
CP
NCAT
11/02/04
1.730
50,000
12
28,833.33
1.755
CP
NCAT
11/02/04
1.730
50,000
12
28,833.33
1.755
CP
W/F
11/02/04
1.760
50,000
13
31,777.78
1.786
CP
W/F
11/02/04
1.760
50,000
13
31,777.78
1.786
CP
TOYOTA
11/02/04
1.530
50,000
137
291,125.00
1.560
CP
TOYOTA
11/02/04
1.590
50,000
139
306,958.33
1.622
CP
TOYOTA
11/02/04
1.590
50,000
139
306,958.33
1.622
DISC NOTE
FHLMC
11/02/04
1.610
25,000
125
139,756.94
1.642
DISC NOTE
FHLMC
11/02/04
1.610
50,000
125
279,513.89
1.642
DISC NOTE
FHLMC
11/02/04
1.380
20,000
158
121,133.33
1.408
11/02/04 PURCHASES
FHLB
2.750% 12/15/06
2.820
50,000
FHLB
2.750% 12/15/06
2.820
50,000
CP W/F
11/17/04
1.840
50,000
CP W/F
11/17/04
1.840
50,000
5
11/02/04 PURCHASES (continued)
CID W/F 11/17/04 1.840 50,000
CID CITI GLOBAL 11/17/04 1.880 50,000
CID CITI GLOBAL 11/17/04 1.880 50,000
11103/04 REDEMPTIONS
DISC NOTE
FNMA
11/03/04
1.400
50,000
169
328,611.11
1.429
DISC NOTE
FNMA
11/03/04
1.400
50,000
169
328,611.11
1.429
DISC NOTE
FNMA
11/03/04
1.400
50,000
169
328,611.11
1.429
DISC NOTE
FNMA
11/03/04
1.400
50,000
169
328,611.11
1.429
DISC NOTE
FNMA
11/03/04
1.400
50,000
169
328,611.11
1.429
DISC NOTE
FNMA
11/03/04
1.400
24,993
169
164,259.55
1.429
DISC NOTE
FNMA
11/03/04
1.370
50,000
170
323,472.22
1.398
DISC NOTE
FNMA
11/03/04
1.370
50,000
170
323,472.22
1.398
DISC NOTE
FNMA
11/03/04
1.390
50,000
175
337,847.22
1.419
DISC NOTE
FNMA
11/03/04
1.390
50,000
175
337,847.22
1.419
11/03/04 PURCHASES
CD
FORTIS
2.215%
04/11/05
2.215
50,000
CD
FORTIS
2.215%
04/11/05
2.215
50,000
CD
DANSKE
2.245%
04/27/05
2.240
50,000
CD
DANSKE
2.245%
04/27/05
2.240
50,000
CID
GE CO
11/15/04
1.780
50,000
CID
GE CO
11/15/04
1.780
50,000
CID
GECC
11/17/04
1.780
5,000
CID
GECC
11/17/04
1.780
50,000
CID
GECC
11/17/04
1.780
50,000
CID
GECC
11/17/04
1.780
50,000
CID
GECC
11/17/04
1.780
50,000
CID
TOYOTA
03/01/05
2.140
50,000
CID
TOYOTA
03/01/05
2.140
50,000
CP
TOYOTA
03/01/05
2.140
50,000
CID
FCAR
03/07/05
2.170
45,000
CID
FCAR
03/07/05
2.170
50,000
CP
FCAR
03/07/05
2.170
50,000
DISC NOTE
FHLMC
03/01/05
2.120
50,000
DISC NOTE
FHLMC
03/01/05
2.120
50,000
11/04/04 REDEMPTIONS
TREAS
BILL
11/04104
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.170
50,000
177
287,625.00
1.193
TREAS
BILL
11/04/04
1.173
50,000
177
288,239.58
1.196
TREAS
BILL
11/04/04
1.173
50,000
177
288,239.58
1.196
TREAS
BILL
11/04/04
1.173
50,000
177
288,239.58
1.196
6
11/04/04 REDEMPTIONS (continued)
TREAS BILL 11/04/04 1.173 50,000 177 288,239.58 1.196
11/04/04 PURCHASES
FHLB
2.750%
11/15/06
2.830
50,000
CP
CHEVRON
11/08/04
1.720
50,000
CP
CHEVRON
11/08/04
1.720
50,000
CP
CHEVRON
11/08/04
1.720
50,000
CP
CHEVRON
11/08/04
1.720
50,000
CP
AMER EXP
11/22/04
1.880
10,000
CP
AMER EXP
11/22/04
1.880
50,000
CP
AMER EXP
11/22/04
1.880
50,000
CP
SARA LEE
12/02/04
1.990
30,000
CP
BRISTOL
12/06/04
1.980
9,500
CP
BRISTOL
12/06/04
1.980
50,000
DISC NOTE
FHLB
11/09/04
1.710
50,000
DISC NOTE
FHLB
11/09/04
1.710
50,000
DISC NOTE
FHLB
11/09/04
1.710
50,000
DISC NOTE
FHLB
11/10/04
1.710
50,000
DISC NOTE
FHLB
11/10/04
1.710
50,000
DISC NOTE
FHLB
11/10/04
1.710
50,000
DISC NOTE
FHLMC
12/27/04
1.985
50,000
DISC NOTE
FHLMC
12/27/04
1.985
50,000
11/05/04 SALES
TREAS
NOTE
2.500%
09/30/06
2.567
50,000
30 245,454.63
TREAS
NOTE
2.500%
09/30/06
2.567
50,000
30 245,454.63
11/05/04 REDEMPTIONS
DISC NOTE
FHLB
11/05/04
1.385
50,000
178 342,402.78
DISC NOTE
FHLB
11/05/04
1.385
35,000
178 239,681.94
MTN
GMAC
5.750%
11/05/04
5.750
50,000
731 5,750,000.00
11/06/04 PURCHASES
FHLB
3.500%
08/15/06
2.720
50,000
FHLB
3.500%
08/15/06
2.720
50,000
CD
FORTIS
2.300%
04/08/05
2.300
50,000
CD
FORTIS
2.300%
04/08/05
2.300
50,000
CD
TORONTO
2.330%
04/11/05
2.320
20,000
CD
TORONTO
2.330%
04/11/05
2.320
50,000
CP
BRISTOL
12/03/04
2.000
31,591
CP
DEERE
12/10104
2.070
47,000
DISC NOTE
FHLMC
03/08/05
2.170
50,000
DISC NOTE
FHLMC
03/30/05
2.200
50,000
DISC NOTE
FHLMC
03/30/05
2.200
50,000
r1
5.990
5.990
1.414
1.414
5.758
11/08/04 REDEMPTIONS
CP
CHEVRON
11/08/04
1.720
50,000
4
9,555.56
1.744
CP
CHEVRON
11/08/04
1.720
50,000
4
9,555.56
1.744
CP
CHEVRON
11/08/04
1.720
50,000
4
9,555.56
1.744
CP
CHEVRON
11/08/04
1.720
50,000
4
9,555.56
1.744
CP
TOYOTA
11/08/04
1.760
50,000
7
17,111.11
1.785
CP
TOYOTA
11/08/04
1.760
50,000
7
17,111.11
1.785
CP
CITICORP
11/08/04
1.780
50,000
18
44,500.00
1.806
CP
CITICORP
11/08/04
1.780
50,000
18
44,500.00
1.806
CP
GOLDMAN
11/08/04
1.600
50,000
81
180,000.00
1.628
CP
GOLDMAN
11/08/04
1.600
50,000
81
180,000.00
1.628
CP
GOLDMAN
11/08/04
1.600
50,000
81
180,000.00
1.628
CP
GOLDMAN
11/08/04
1.600
50,000
81
180,000.00
1.628
CP
GMAC
11/08/04
1.760
25,000
115
140,555.56
1.795
CP
GMAC
11/08/04
1.760
50,000
115
281,111.11
1.795
11/08/04 PURCHASES
FHLB
2.750% 11/15/06
3.030
50,000
FHLB
2.750% 11/15/06
3.030
50,000
CP
GECC
11/09/04
1.850
50,000
CP
GECC
11/09/04
1.850
50,000
11/09/04 REDEMPTIONS
CP
GECC
11/09/04
1.850
50,000
1
2,569.44
1.876
CP
GECC
11/09/04
1.850
50,000
1
2,569.44
1.876
CP
W/F
11/09/04
1.750
50,000
8
19,444.44
1.775
CP
W/F
11/09/04
1.750
50,000
8
19,444.44
1.775
CP
W/F
11/09/04
1.750
50,000
8
19,444.44
1.775
CP
W/F
11/09/04
1.750
50,000
8
19,444.44
1.775
DISC NOTE
FHLB
11/09/04
1.710
50,000
5
11,875.00
1.734
DISC NOTE
FHLB
11/09/04
1.710
50,000
5
11,875.00
1.734
DISC NOTE
FHLB
11/09/04
1.710
50,000
5
11,875.00
1.734
DISC NOTE
FHLMC
11/09/04
1.390
35,000
182
243,245.43
1.419
DISC NOTE
FHLMC
11/09/04
1.390
50,000
182
351,361.11
1.419
11/09/04 PURCHASES
FHLB
2.750%
11/15/06
3.029
25,000
FHLB
2.750%
12/15/06
3.030
50,000
FHLB
2.750%
11/15/06
3.060
50,000
FHLB
2.875%
02/15/07
3.110
50,000
CP
GECC
11/10/04
1.830
25,000
CP
GECC
11/10/04
1.830
50,000
11/10/04 REDEMPTIONS
CP
GECC
11/10/04
1.830
25,000 1 1,270.83 1.856
CP
GECC
11/10/04
1.830
50,000 1 2,541.67 1.856
DISC NOTE
FHLB
11/10/04
1.710
50,000 6 14,250.00 1.734
8
11/10/04 REDEMPTIONS (continued)
DISC NOTE
FHLB
DISC NOTE
FHLB
DISC NOTE
FNMA
DISC NOTE
FNMA
DISC NOTE
FNMA
DISC NOTE
FNMA
DISC NOTE
FNMA
11/10/04 PURCHASES
11/10/04
1.710
50,000
6
14,250.00
1.734
11/10/04
1.710
50,000
6
14,250.00
1.734
11/10/04
1.580
40,000
135
237, 000.00
1.611
11/10/04
1.580
50,000
135
296,250.00
1.611
11/10/04
1.580
50,000
135
296,250.00
1.611
11/10/04
1.565
50,000
139
302,131.94
1.596
11/10/04
1.565
50,000
139
302,131.94
1.596
CP
W/F
11/16/04
1.980
50,000
CP
W/F
11/16/04
1.980
50,000
CP
COUNTRY
11/17/04
2.000
30,000
CP
COUNTRY
11/17/04
2.000
50,000
CP
W/F
11/17/04
1.980
50,000
CP
W/F
11/17/04
1.980
50,000
MTN
GECC
5.375% 03/17/07
3.280
20,000
11/12/04 REDEMPTIONS
DISC NOTE
FHLB
11/12/04
1.370
50,000
179
340,597.22
1.399
DISC NOTE
FHLB
11/12/04
1.370
50,000
179
340,597.22
1.399
DISC NOTE
FHLB
11/12/04
1.370
50,000
179
340,597.22
1.399
DISC NOTE
FHLB
11/12/04
1.370
50,000
179
340,597.22
1.399
11/12/04 PURCHASES
CP
CITICORP
11/15/04
1.980
50,000
CP
CITICORP
11/15/04
1.980
50,000
CP
CITICORP
11/16/04
1.980
50,000
CP
CITICORP
11/16/04
1.980
50,000
CP
MERRILL
11/24/04
1.990
30,000
CP
MERRILL
11/24/04
1.990
50,000
CP
MERRILL
11/24/04
1.990
50,000
CP
TOYOTA
03/07/05
2.240
50,000
CP
TOYOTA
03/07/05
2.240
50,000
CB
CITICORP
7.125% 09/01/05
2.630
21,927
11/16/04 REDEMPTIONS
CP
CITICORP
11/15/04
CP
CITICORP
11/15/04
CP
GE CO
11/15/04
CP
GE CO
11/15/04
CP
W/F
11/15/04
CP
W/F
11/15/04
CP
W/F
11/15/04
CP
W/F
11/15/04
TREAS
NOTE
5.875% 11/15/04
TREAS
NOTE
5.875% 11/15/04
9
1.980
50,000
3
8,250.00
2.008
1.980
50,000
3
8,250.00
2.008
1.780
50,000
12
29,666.67
1.806
1.780
50,000
12
29,666.67
1.806
1.840
50,000
14
35,777.78
1.867
1.840
50,000
14
35,777.78
1.867
1.840
50,000
14
35,777.78
1.867
1.840
50,000
14
35,777.78
1.867
3.103
50,000
875
3,856,487.77
3.103
3.103
50,000
875
3,856,487.77
3.103
11/15/04 REDEMPTIONS (continued)
TREAS NOTE 5.875% 11/15/04 3.106 50,000 875 3,860,394.02 3.106
TREAS NOTE 5.875% 11/15/04 3.106 50,000 875 3,860,394.02 3.106
TREAS NOTE 5.875% 11/15/04 3.133 50,000 875 3,891,644.02 3.133
11/15/04 PURCHASES
DISC NOTE
FHLMC
03/08/05
2.210
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/28/05
2.250
50,000
DISC NOTE
FHLMC
03/30/05
2.250
50,000
DISC NOTE
FHLMC
03/30/05
2.250
50,000
DISC NOTE
FHLMC
03/30/05
2.250
50,000
DISC NOTE
FHLMC
03/30/05
2.250
50,000
11/16/04 REDEMPTIONS
CP
CITICORP
11/16/04
1.980
50,000
4
11,000.00
2.008
CP
CITICORP
11/16/04
1.980
50,000
4
11,000.00
2.008
CP
W/F
11/16/04
1.980
50,000
6
16,500.00
2.008
CP
W/F
11/16/04
1.980
50,000
6
16,500.00
2.008
11/16/04 PURCHASES
FHLB
3.000%
11/15/06
3.112
50,000
FHLB
3.000%
11/15/06
3.112
50,000
BN WORLD
2.270%
03/28/05
2.290
25,000
BN WORLD
2.270%
03/28/05
2.290
50,000
BN WORLD
2.270%
03/28/05
2.290
50,000
11/17/04 REDEMPTIONS
CP
COUNTRY
11/17/04
2.000
30,000
7
11,666.67
2.029
CP
COUNTRY
11/17/04
2.000
50,000
7
19,444.44
2.029
CP
W/F
11/17/04
1.980
50,000
7
19,250.00
2.008
CP
W/F
11/17/04
1.980
50,000
7
19,250.00
2.008
CP
GECC
11/17/04
1.780
5,000
14
3,461.11
1.806
CP
GECC
11/17/04
1.780
50,000
14
34,611.11
1.806
CP
GECC
11/17/04
1.780
50,000
14
34,611.11
1.806
CP
GECC
11/17/04
1.780
50,000
14
34,611.11
1.806
CP
GECC
11/17/04
1.780
50,000
14
34,611.11
1.806
CP
W/F
11/17/04
1.840
50,000
15
38,333.33
1.867
CP
W/F
11/17/04
1.840
50,000
15
38,333.33
1.867
CP
WIF
11/17/04
1.840
50,000
15
38,333.33
1.867
CP
CITI GLOBAL
11/17/04
1.880
50,000
15
39,166.67
1.908
CP
CITI GLOBAL
11/17/04
1.880
50,000
15
39,166.67
1.908
CP
SRAC
11/17/04
1.850
40,000
49
100,722.22
1.880
10
11/17/04 REDEMPTIONS (continued)
DISC NOTE
FNMA
11/17/04
1.610
50,000
153
342,125.00
1.644
DISC NOTE
FNMA
11/17/04
1.610
50,000
153
342,125.00
1.644
DISC NOTE
FNMA
11/17/04
1.640
50,000
153
348,500.00
1.674
DISC NOTE
FNMA
11/17/04
1.640
50,000
153
348,500.00
1.674
DISC NOTE
FNMA
11/17/04
1.640
50,000
153
348,500.00
1.674
DISC NOTE
FNMA
11/17/04
1.410
9,499
173
64,363.64
1.439
DISC NOTE
FNMA
11/17/04
1.410
50,000
173
338,791.67
1.439
DISC NOTE
FNMA
11/17/04
1.410
50,000
173
338,791.67
1.439
11/17/04 PURCHASES
CD
RB CANADA
2.320%
03/30/05
2.320
50,000
CD
RB CANADA
2.320%
03/30/05
2.320
50,000
TREAS
NOTE
2.500%
10/31/06
2.879
50,000
TREAS
NOTE
2.500%
10/31/06
2.879
50,000
11/18/05 REDEMPTIONS
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750,00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
TREAS
BILL
11/18/04
1.350
50,000
178
333,750.00
1.378
11/18/04 PURCHASES
FHLMC
2.910% 06/16/06
3.000
47,805
CD
SOC GEN
2.000% 12/02/04
2.000
50,000
CP
W/F
12/10/04
2.000
50,000
CP
W/F
12/10/04
2.000
50,000
CP
W/F
12/10/04
2.000
50,000
CP
W/F
12/10/04
2.000
50,000
CP
GECC
12/13/04
2.010
50,000
CP
GECC
12/13/04
2.010
50,000
CP
GECC
12/13/04
2.010
50,000
CP
GECC
12/13/04
2.010
50,000
CP
GECC
12/14/04
2.010
50,000
CP
GECC
12/14/04
2.010
50,000
CP
GECC
12/14/04
2.010
50,000
CP
GECC
12/14/04
2.010
50,000
11
11/19/04 RRS
TREAS
NOTE
TREAS
NOTE
11/19/04
PURCHASES g/
CP
CHEVRON
CP
CHEVRON
11/19/04
PURCHASES
CB
BANC ONE
CB
W/F
CP
CITI GLOBAL
CP
CITI GLOBAL
11/22/04
REDEMPTIONS
CP
AMER EXP
CP
AMER EXP
CP
AMER EXP
DISC NOTE
FNMA
DISC NOTE
FNMA
DISC NOTE
FNMA
11/22/04
PURCHASES
BN
WORLD
BN
WORLD
BN
WORLD
BN
WORLD
CD
LLOYDS
CD
LLOYDS
CD
LLOYDS
CD
LLOYDS
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
CP
CITI GLOBAL
DISC NOTE
FHLMC
DISC NOTE
FHLMC
DISC NOTE
FHLMC
FR
SBA
11/23/04 NO REDEMPTIONS
11/23/04 PURCHASES
2.500% 10/31/06 1.350 50,000
2.500% 10/31/06 1.350 50,000
11/30/04 1.990 50,000
11/30/04 1.990 50,000
7.625% 08/01 /05
2,654
20,105
6.875% 04/01 /06
2.989
3,789
12/03/04
2.020
50,000
12/03/04
2.020
50,000
11/22/04
1.880
10,000
18
9,400.00
1.908
11/22/04
1.880
50,000
18
47,000.00
1.908
11/22/04
1.880
50,000
18
47,000.00
1,908
11/22/04
1.630
50,000
145
328,263.89
1.664
11/22/04
1.630
50,000
145
328,263.89
1.664
11/22/04
1.600
50,000
151
335, 555.56
1.633
2.270%
03/28/05
2.290
2.270%
03/28/05
2,290
2.270%
03/28/05
2.290
2.270%
03/28/05
2.290
2.330%
03/28/05
2.330
2.330%
03/28/05
2.330
2.330%
03/28/05
2.330
2.330%
03/28/05
2.330
04/01 /05
2.300
04/01 /05
2.300
04/01 /05
2.300
04/01 /05
2.300
03/21 /05
2.270
03/21 /05
2.270
03/28/05
2.290
2.050%
09/25/29
2.050
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
25,551
FHLB 2.875% 05/22/06 3.050 50,000
FHLB 2.875% 05/23/06 3.050 50,000
FHLB 2.875% 05/23/06 3.050 50,000
12
11/23/04 PURCHASES (continued)
FHLB 5.250% 08/15/06 3.090 19,840
CP SRAC 12/01/04 2.110 30,000
11/24/04 REDEMPTIONS
CD
ANZ
1.420%
11/24/04
1.430
50,000
191
379,327.24
1.450
CD
ANZ
1.420%
11/24/04
1.430
50,000
191
379,327.24
1.450
CD
STNRD CH
1.430%
11/24/04
1.430
50,000
191
379,347.22
1.450
CD
FORTIS'
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CD
FORTIS
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CD
HSBC
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CD
HSBC
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CD
HSBC
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CD
HSBC
1.430%
11/24/04
1.430
50,000
197
391,263.89
1.450
CP
MERRILL
11/24/04
1.990
30,000
12
19,900.00
2.018
CP
MERRILL
11/24/04
1.990
50,000
12
33,166.67
2.018
CP
MERRILL
11/24/04
1.990
50,000
12
33,166.67
2.018
DISC NOTE
FHLMC
11/24/04
1.380
50,000
197
377,583.33
1.410
DISC NOTE
FHLMC
11/24/04
1.380
50,000
197
377,583.33
1.410
DISC NOTE
FHLMC
11/24/04
1.380
50,000
197
377,583.33
1.410
DISC NOTE
FHLMC
11/24/04
1.380
50,000
197
377,583.33
1.410
DISC NOTE
FNMA
11/24/04
1.630
25,000
147
166,395.83
1.664
DISC NOTE
FNMA
11/24/04
1.630
50,000
147
332,791.67
1.664
DISC NOTE
FNMA
11/24/04
1.630
50,000
147
332,791.67
1.664
DISC NOTE
FNMA
11/24/04
1.610
50,000
149
333,180.56
1.643
DISC NOTE
FNMA
11/24/04
1.610
50,000
149
333,180.56
1.643
DISC NOTE
FNMA
11/24/04
1.610
50,000
149
333,180.56
1.643
DISC NOTE
FNMA
11/24/04
1.610
50,000
149
333,180.56
1.643
DISC NOTE
FNMA
11/24/04
1.600
50,000
153
340,000.00
1.633
DISC NOTE
FNMA
11/24/04
1.600
50,000
153
340,000.00
1.633
DISC NOTE
FNMA
11/24/04
1.600
50,000
153
340,000.00
1.633
DISC NOTE
FNMA
11/24/04
1.600
50,000
153
340,000.00
1.633
DISC NOTE
FNMA
11/24/04
1.370
50,000
198
376,750.00
1.400
DISC NOTE
FNMA
11/24/04
1.370
50,000
198
376,750.00
1.400
11/24/04 PURCHASES
CB COUNTRY
CB COUNTRY
CP MORG STAN
11/29/04 NO REDEMPTIONS
11/29/04 PURCHASES
3.500% 12/19/05 3.010 8,000
3.500% 12/19/05 3.010 17,000
12/02/04 2.030 25,000
CD
FORTIS
2.410%
04/01/05
2.410
50,000
CD
FORTIS
2.410%
04/01/05
2.410
50,000
CD
FORTIS
2.410%
04/01/05
2.410
50,000
CD
FORTIS
2.410%
04/01/05
2.410
50,000
CP
W/F
12/06/04
2.000
50,000
13
11/29/04 PURCHASES (continued)
CID
W/F
CID
W/F
CID
W/F
CID
GECC
CID
GECC
CID
GECC
CID
GECC
TREAS
BILL
TREAS
BILL
TREAS
BILL
TREAS
BILL
TREAS
BILL
TREAS
BILL
TREAS
BILL
TREAS
BILL
11/30/04 RRS
TREAS
NOTES
TREAS
NOTES
11/30104 REDEMPTIONS
CD
SVENSKA
CD
SVENSKA
CD
HSBC
CD
HSBC
CD
HSBC
CD
HSBC
CID
CHEVRON
CID
CHEVRON
DISC NOTE
FHLMC
DISC NOTE
FHLMC
DISC NOTE
FHLMC
DISC NOTE
FHLMC
11/30/04 RRP
TREAS
NOTE
TREAS
NOTE
11/30/04 PURCHASES
g/
CID
CHEVRON
CP
CHEVRON
12/06/04
2.000
50,000
12/07/04
2.000
50,000
12/07/04
2.000
50,000
04/01/05
2.380
50,000
04/01 /05
2.380
50,000
04/01 /05
2.380
50,000
04/01/05
2.380
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
05/26/05
2.340
50,000
2.500% 10/31/06 1.350 50,000
2.500% 10/31/06 1.350 50,000
1.460%
11/30/04
1.460
50,000
202
409,611.11
1.480
1.460%
11/30/04
1.460
50,000
202
409,611.11
1.480
1.450%
11/30/04
1.445
50,000
203
407,421.12
1.465
1.450%
11/30/04
1.445
50,000
203
407,421.12
1.465
1.450%
11/30/04
1.445
50,000
203
407,421.12
1.465
1.450%
11/30/04
1.445
50,000
203
407,421.12
1.465
11/30/04
1.990
50,000
11
30,402.78
2.018
11/30/04
1.990
50,000
11
30,402.78
2.018
11/30/04
1.625
50,000
165
372,395.83
1.660
11/30/04
1.625
50,000
165
372,395.83
1.660
11/30/04
1.470
50,000
182
371,583.33
1.502
11/30/04
1.470
50,000
182
371,583.33
1.502
2.500% 10/31/06 1.350 50,000 11 (20,496.09) -1.368
2.500% 10/31/06 1.350 50,000 11 (20,496.09) -1.368
12/09/04 2.000 50,000
12/09/04 2.000 50,000
14
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.
ij Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
15
NAME
ALHAMBRA
Omni Bank
Omni Bank
Omni Bank
Omni Bank
Omni Bank
Omni Bank
Omni Bank
The Bank of East Asia (USA), N.A.
The Bank of East Asia (USA), N.A.
The Bank of East Asia (USA), N.A.
ARROYO GRANDE
Mid State Bank and Trust
Mid State Bank and Trust
Mid State Bank and Trust
Mid State Bank and Trust
Mid State Bank and Trust
Mid State Bank and Trust
BREA
Pacific Western National Bank
CALABASAS
First Bank of Beverly Hills, FSB
First Bank of Beverly Hills, FSB
First Bank of Beverly Hills, FSB
First California Bank
First California Bank
First California Bank
First California Bank
CAMERON PARK
Western Sierra National Bank
Western Sierra National Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
08/25/2004
1.560
2,000,000.00
12/01/2004
09/03/2004
1.640
6,000,000.00
12/10/2004
09/15/2004
1.710
2,000,000.00
12/17/2004
10/01/2004
1.770
2,000,000.00
01/07/2005
11/19/2004
2.170
4,000,000.00
02/18/2005
11/23/2004
2.290
2,000,000.00
04/08/2005
11/12/2004
2.350
2,000,000.00
05/13/2005
08/11/2004
1.750
3,000,000.00
02/09/2005
08/18/2004
1.820
6,000,000.00
02/16/2005
10/14/2004
2.050
3,095,000.00
04/14/2005
06/11/2004
1.670
5,000,000.00
12/10/2004
07/15/2004
1.740
5,000,000.00
01/13/2005
08/11/2004
1.730
5,000,000.00
02/09/2005
09/09/2004
1.930
5,000,000.00
03/10/2005
10/13/2004
2.050
5,000,000.00
04/13/2005
11/17/2004
2.350
5,000,000.00
05/18/2005
08/04/2004
1.080
4,000,000.00
02/02/2005
06/16/2004
1.770
10,000,000.00
12/15/2004
09/02/2004
1.850
10,000,000.00
03/03/2005
11/04/2004
2.230
10,000,000.00
05/05/2005
06/09/2004
1.570
2,000,000.00
12/03/2004
06/04/2004
1.500
2,000,000.00
12/03/2004
07/28/2004
1.810
6,000,000.00
01/26/2005
09/22/2004
1.960
6,000,000.00
03/23/2005
07/14/2004 1.660 7,000,000.00 01/12/2005
10/06/2004 2.030 10,000,000.00 04/06/2005
01-1
NAME
CHATSWORTH
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
CHICO
Tri Counties Bank
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
EverTrust Bank
DUBLIN
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
EL CENTRO
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
Valley Independent Bank
ELSEGUNDO
First Coastal Bank, N.A.
First Coastal Bank, N.A.
First Coastal Bank, N.A.
Xerox Federal Credit Union
Xerox Federal Credit Union
Xerox Federal Credit Union
FAIRFIELD
Westamerica Bank
Westamerica Bank
Westamerica Bank
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT {$) DATE
09/22/2004 1.770 10,000,000.00 01/06/2005
10/20/2004 1.820 10,000,000.00 01/19/2005
11/10/2004 2.110 10,000,000.00 02/09/2005
09/16/2004
1.700
20,000,000.00
12/16/2004
09/10/2004
1.710
6,000,000.00
12/10/2004
11/03/2004
1.950
5,000,000.00
02/02/2005
10/28/2004
2.120
6,000,000.00
04/28/2005
06/11 /2004
08/11 /2004
10/06/2004
09/29/2004
10/15/2004
10/15/2004
10/22/2004
09/01 /2004
09/17/2004
07/21 /2004
09/02/2004
09/09/2004
11 /17/2004
10/08/2004
10/14/2004
11 /17/2004
17
1.650 10, 000, 000.00 12/10/2004
1.710 5,000,000.00 02/09/2005
2.030 5,000,000.00 04/06/2005
1.800
20,000,000.00
01/07/2005
1.790
20,000,000.00
01/14/2005
1.790
27,500,000.00
01/14/2005
1.890
32,500,000.00
01/21/2005
1.620
2,000,000.00
12/01/2004
1.720
5,000,000.00
12/17/2004
1.720
2,000,000.00
01/20/2005
1.670
20,000,000.00
12/02/2004
1.940
7,000,000.00
03/14/2005
2.370
20,000,000.00
05/18/2005
1.760 60,000,000.00 01/06/2005
1.730 65,000,000.00 01/14/2005
2.130 50,000,000.00 02/16/2005
NAME
FRESNO
United Security Bank
FULLERTON
Fullerton Community Bank
Fullerton Community Bank
GOLETA
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
Pacific Capital Bank, N.A.
GRANADA HILLS
First State Bank of California
First State Bank of California
IRVINE
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
Commercial Capital Bank
LA JOLLA
Silvergate Bank
LODI
Bank of Lodi, N.A.
Bank of Lodi, N.A.
Farmers & Merchants Bk Cen CA
Farmers & Merchants Bk Cen CA
Farmers & Merchants Bk Cen CA
TIME DEPOSITS
DEPOSIT
DATE YIELD
PAR MATURITY
AMOUNT ($) DATE
10/20/2004 2.070 40,000,000.00 04/20/2005
07/23/2004 1.770 8,000,000.00 01/21/2005
11/17/2004 2.360 9,000,000.00 05/18/2005
06/09/2004
1.560
85,000,000.00
12/08/2004
08/13/2004
1.750
11,000,000.00
02/11/2005
08/13/2004
1.750
61,000,000.00
02/11/2005
10/01/2004
2.040
78,000,000.00
04/01/2005
09/17/2004 1.930 2,000,000.00 03/18/2005
10/21 /2004 2.100 3,000,000.00 04121 /2005
09/15/2004
1.680
10, 000, 000.00
12/15/2004
08/26/2004
1.550
14, 000, 000.00
12/15/2004
08/19/2004
1.590
15, 000, 000.00
12/15/2004
09/29/2004
1.780
60,000,000.00
01/07/2005
10/14/2004
1.730
105,000,000.00
01/14/2005
11/17/2004
2.130
90,000,000.00
02/16/2005
09/10/2004 1.740 5,000,000.00 12/10/2004
06/17/2004
1.760
5,000,000.00
12/16/2004
09/22/2004
1.960
5,000,000.00
03/23/2005
06/23/2004
1.720
25,000,000.00
12/22/2004
09/22/2004
1.770
25,000,000.00
01/06/2005
10/07/2004
1.800
10,000,000.00
01/13/2005
18
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
LOS ANGELES
Broadway Federal Bank, FSB
07/09/2004
1.680
2,500,000.00
01/07/2005
Broadway Federal Bank, FSB
09/10/2004
1.940
3,000,000.00
03/11/2005
Cathay Bank
09/01/2004
1.620
17,000,000.00
12/01/2004
Cathay Bank
09/09/2004
1.700
25,000,000.00
12/09/2004
Cathay Bank
09/09/2004
1.700
30,000,000.00
12/09/2004
Cathay Bank
10/07/2004
2.090
38,000,000.00
04/07/2005
Cathay Bank
11/10/2004
2.320
25,000,000.00
05/11/2005
Cathay Bank
11/18/2004
2.400
15,000,000.00
05/19/2005
Cedars Bank
09/10/2004
1.710
4,500,000.00
12/10/2004
Cedars Bank
09/29/2004
1.780
4,000,000.00
01/07/2005
Cedars Bank
10/06/2004
1.800
5,000,000.00
01/12/2005
Cedars Bank
11/03/2004
1.970
5,000,000.00
02/02/2005
Cedars Bank
09/22/2004
1.950
5,000,000.00
03/23/2005
Center Bank
06/23/2004
1.720
5,000,000.00
12/22/2004
Center Bank
09/15/2004
1.710
20,000,000.00
12/22/2004
Center Bank
07/21/2004
1.710
5,000,000.00
01/20/2005
Center Bank
10/07/2004
1.800
10,000,000.00
01/20/2005
Center Bank
09/15/2004
1.920
20,000,000.00
03/16/2005
CHB America Bank
08/20/2004
1.780
4,000,000.00
02/18/2005
CHB America Bank
09/01/2004
1.850
4,000,000.00
03/02/2005
CHB America Bank
10/14/2004
2.040
4,300,000.00
04/14/2005
Eastern International Bank
06/10/2004
1.600
1,000,000.00
12/09/2004
Eastern International Bank
11/03/2004
2.210
900,000.00
05/04/2005
Hanmi Bank
09/02/2004
1.660
25,000,000.00
12/02/2004
Hanmi Bank
09/15/2004
1.710
25,000,000.00
12/15/2004
Hanmi Bank
10/07/2004
1.800
10,000,000.00
01/13/2005
Hanmi Bank
10/15/2004
1.770
25,000,000.00
01/14/2005
Hanmi Bank
11/04/2004
1.970
40,000,000.00
02/03/2005
Hanmi Bank
09/02/2004
1.850
20,000,000.00
03/03/2005
Hanmi Bank
09/15/2004
1.920
20,000,000.00
03/16/2005
Hanmi Bank
10/29/2004
2.140
10,000,000.00
04/29/2005
Hanmi Bank
11/04/2004
2.210
25,000,000.00
05/05/2005
Mellon First Business Bank, N.A.
09/16/2004
1.700
50,000,000.00
12/16/2004
Mellon First Business Bank, N.A.
10/08/2004
1.780
50,000,000.00
01/14/2005
Mirae Bank
09/23/2004
1.800
2,500,000.00
03/24/2005
Mirae Bank
10/15/2004
2.060
4,000,000.00
04/15/2005
Nara Bank, N.A.
10/07/2004
1.800
5,000,000.00
01/13/2005
Nara Bank, N.A.
07/22/2004
1.730
10,000,000.00
01/20/2005
Nara Bank, N.A.
10/21/2004
1.860
15,000,000.00
01/21/2005
Nara Bank, N.A.
08/04/2004
1.800
10,000,000.00
02/02/2005
Nara Bank, N.A.
08/12/2004
1.760
5,000,000.00
02/10/2005
Nara Bank, N.A.
09/10/2004
1.940
10,000,000.00
03/11/2005
19
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LOS ANGELES (continued)
Nara Bank, N.A.
11/18/2004
2.390
5,000,000.00
05/19/2005
Nara Bank, N.A.
11/18/2004
2.390
5,000,000.00
05/19/2005
One United Bank
09/08/2004
1.700
10,000,000.00
12/08/2004
One United Bank
10/13/2004
1.750
5,000,000.00
01/12/2005
Preferred Bank
09/17/2004
1.710
15,000,000.00
12/17/2004
Preferred Bank
11/05/2004
2.000
4,000,000.00
02/04/2005
Preferred Bank
09/17/2004
1.930
16,000,000.00
03/18/2005
Saehan Bank
11/19/2004
2.150
2,000,000.00
02/18/2005
State Bank of India (California)
10/06/2004
2.060
3,000,000.00
04/06/2005
State Bank of India (California)
10/28/2004
2.150
3,000,000.00
04/28/2005
State Bank of India (California)
11/18/2004
2.400
2,000,000.00
05/19/2005
Western Federal Credit Union
10/22/2004
1.890
30,000,000.00
01/21/2005
Wilshire State Bank
09/03/2004
1.640
15,000,000.00
12/03/2004
Wilshire State Bank
09/17/2004
1.710
8,000,000.00
12/17/2004
Wilshire State Bank
10/08/2004
1.780
19,000,000.00
01/14/2005
Wilshire State Bank
11/10/2004
2.100
8,000,000.00
02/09/2005
Wilshire State Bank
11/30/2004
2.220
15,000,000.00
03/02/2005
MERCED
County Bank 09/03/2004 1.650 5,000,000.00 12/03/2004
County Bank 10/15/2004 1.780 10,000,000.00 01/14/2005
County Bank 09/09/2004 1.940 10,000,000.00 03/10/2005
NEWPORT BEACH
Orange County Business Bank, N.A. 09/23/2004 1.780 4,000,000.00 01/06/2005
Orange County Business Bank, N.A. 09/22/2004 1.960 4,000,000.00 03/23/2005
NORTH HIGHLANDS
Safe Credit Union
Safe Credit Union
OAKDALE
Oak Valley Community Bank
Oak Valley Community Bank
OAKLAND
Metropolitian Bank
10/15/2004 1.770 5,000,000.00 01/14/2005
11/12/2004 2.130 20,000,000.00 02/11/2005
09/16/2004 1.680
10/15/2004 1.750
06/03/2004 1.450
1 Zll
3, 500, 000.00 12/16/2004
2,500,000.00 01/14/2005
500, 000.00 12/02/2004
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($} DATE
OAKLAND (continued)
Metropolitian Bank
06/03/2004
1.450
1,000,000.00
12/02/2004
Metropolitian Bank
07/23/2004
1.760
1,000,000.00
01 /21 /2005
Metropolitian Bank
07/29/2004
1.830
1,500,000.00
01/27/2005
Metropolitian Bank
08/26/2004
1.860
1,000,000.00
02/24/2005
Metropolitian Bank
09/22/2004
1.950
2,000,000.00
03/23/2005
ONTARIO
Citizens Business Bank
09/03/2004
1.840
25,000,000.00
03/04/2005
Citizens Business Bank
09/22/2004
1.950
30,000,000.00
03/23/2005
Citizens Business Bank
10/01/2004
2.040
25,000,000.00
04/01/2005
Citizens Business Bank
11/05/2004
2.230
30,000,000.00
05/06/2005
Citizens Business Bank
11/18/2004
2.390
30,000,000.00
05/19/2005
PALO ALTO
Greater Bay
Bank, NA
07/14/2004
1.680
15,000,000.00
01/12/2005
Greater Bay
Bank, NA
07/29/2004
1.830
95,000,000.00
01/27/2005
Greater Bay
Bank, NA
08/18/2004
1.790
30,000,000.00
02/16/2005
Greater Bay
Bank, NA
08/1912004
1.800
63,500,000.00
02/16/2005
Greater Bay
Bank, NA
08/20/2004
1.780
49,000,000.00
02/18/2005
Greater Bay
Bank, NA
09/09/2004
1.920
42,000,000.00
03/10/2005
PALOS VERDES ESTATES
Malaga
Bank, SSB
06/16/2004
1.750
9,000,000.00
12/15/2004
Malaga
Bank, SSB
08/20/2004
1.780
10,000,000.00
02/18/2005
Malaga
Bank, SSB
09/03/2004
1.840
4,000,000.00
03/04/2005
Malaga
Bank, SSB
10/07/2004
2.080
5,000,000.00
04/07/2005
Malaga
Bank, SSB
11/10/2004
2.350
7,000,000.00
05/11/2005
PASADENA
Community Bank
06/16/2004
1.770
10,000,000.00
12/15/2004
Community Bank
07/09/2004
1.680
10,000,000.00
01/07/2005
Community Bank
08/04/2004
1.800
25,000,000.00
02/02/2005
Community Bank
09/15/2004
1.920
10,000,000.00
03/16/2005
Community Bank
10/07/2004
2.080
10,000,000.00
04/07/2005
Community Bank
10/13/2004
2.050
15,000,000.00
04/13/2005
Community Bank
11/04/2004
2.230
15,000,000.00
05/05/2005
Wescom Credit Union
09/22/2004
1.760
25,000,000.00
12/22/2004
Wescom Credit Union
09/22/2004
1.760
25,000,000.00
12/22/2004
21
NAME
PASADENA (continued)
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
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
TIME DEPOSITS
DEPOSIT PAR MATURITY
DATE YIELD AMOUNT ($) DATE
10/13/2004 1.760 25,000,000.00 01/12/2005
07/29/2004 1.840 25,000,000.00 01/27/2005
11/18/2004 2.420 35,000,000.00 05/19/2005
04/30/2004 1.560 5,000,000.00 04/29/2005
06/04/2004 1.920 20,000,000.00 06/03/2005
09/17/2004 1.940 6,000,000.00 03/18/2005
06/09/2004
1.560
20,000,000.00
12/08/2004
08/27/2004
1.830
8,000,000.00
02/25/2005
08/30/2004
1.830
12,000,000.00
02/25/2005
11/04/2004
2.230
20,000,000.00
05/05/2005
10/21/2004 2.100 10,000,000.00 04/21/2005
09/02/2004
1.640
10,000,000.00
12/02/2004
06/17/2004
1.720
10, 000, 000.00
12/16/2004
11/03/2004
1.950
25,000,000.00
02/02/2005
11/12/2004
2.110
15,000,000.00
02/11/2005
08/18/2004
1.770
25,000,000.00
02/16/2005
09/02/2004
1.830
10,000,000.00
03/03/2005
09/23/2004
1.960
5,000,000.00
03/24/2005
06/11/2004 1.670 3,000,000.00 12/10/2004
06/03/2004
10/28/2004
22
1.430 20,000,000.00 12/02/2004
2.120 20,000,000.00 04/28/2005
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
ROCKLIN
Five Star Bank
07/28/2004
1.780
2,000,000.00
01/26/2005
Five Star Bank
09/29/2004
2.010
2,000,000.00
03/30/2005
RICHMOND
The Mechanics Bank
03/03/2004
1.260
10,000,000.00
03/03/2005
The Mechanics Bank
04/01/2004
1.260
10,000,000.00
04/01/2005
The Mechanics Bank
04/21/2004
1.450
10,000,000.00
04/21/2005
The Mechanics Bank
06/09/2004
1.960
10,000,000.00
06/09/2005
The Mechanics Bank
07/08/2004
2.070
10,000,000.00
07/08/2005
The Mechanics Bank
08/04/2004
2.180
10,000,000.00
08/04/2005
The Mechanics Bank
09/10/2004
2.180
10,000,000.00
09/14/2005
The Mechanics Bank
10/15/2004
2.250
10,000,000.00
10/14/2005
The Mechanics Bank
10/29/2004
2.320
10,000,000.00
10/28/2005
The Mechanics Bank
11/05/2004
2.380
10,000,000.00
11/04/2005
RIVERSIDE
Provident Savings Bank
09/23/2004
1.980
25,000,000.00
03/24/2005
Provident Savings Bank
10/07/2004
2.080
25,000,000.00
04/07/2005
SACRAMENTO
American River Bank
06/18/2004
1.720
1,000,000.00
12/16/2004
American River Bank
06/17/2004
1.720
1,250,000.00
12/16/2004
American River Bank
07/09/2004
1.660
1,000,000.00
01 /07/2005
American River Bank
07/29/2004
1.810
1,500,000.00
01/27/2005
American River Bank
08/27/2004
1.840
2,000,000.00
02/25/2005
American River Bank
09/17/2004
1.910
1,250,000.00
03/18/2005
American River Bank
09/23/2004
1.960
2,000,000.00
03/24/2005
American River Bank
10/06/2004
2.030
1,500,000.00
04/06/2005
Bank of Sacramento
09/01/2004
1.610
2,000,000.00
12/01/2004
Bank of Sacramento
06/18/2004
1.740
2,000,000.00
12/17/2004
Bank of Sacramento
11/10/2004
2.100
1,500,000.00
02/09/2005
Merchants National Bank of Sacramento
07/21 /2004
1.710
2,000,000.00
01 /02/2005
Merchants National Bank of Sacramento
10/13/2004
2.050
2,000,000.00
04/13/2005
River City Bank
07/30/2004
1.850
3,000,000.00
01/28/2005
River City Bank
08/25/2004
1.820
2,000,000.00
02/24/2005
River City Bank
10/06/2004
2.060
2,000,000.00
04/06/2005
U.S. Bank, N.A.
07/08/2004
1.650
100,000,000.00
01/06/2005
U.S. Bank, N.A.
08/04/2004
1.800
25,000,000.00
02/02/2005
U.S. Bank, N.A.
08/11/2004
1.740
50,000,000.00
02/09/2005
U.S. Bank, N.A.
08/11/2004
1.740
50,000,000.00
02/09/2005
23
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SACRAMENTO (continued)
U.S. Bank, N.A.
08/20/2004
1.800
50,000,000.00
02/18/2005
U.S. Bank, N.A.
08/20/2004
1.800
50,000,000.00
02/18/2005
Union Bank of California, N.A.
09/16/2004
1.700
150,000,000.00
12/16/2004
Union Bank of California, N.A.
10/15/2004
1.780
175,000,000.00
01/14/2005
Union Bank of California, N.A.
11/04/2004
2.030
150,000,000.00
02/03/2005
SAN DIEGO
First Future Credit Union
08/27/2004
1.830
5,000,000.00
02/25/2005
First Future Credit Union
08/27/2004
1.830
10,000,000.00
02/25/2005
First Future Credit Union
09/03/2004
1.840
15,000,000.00
03/04/2005
First Future Credit Union
09/15/2004
1.920
8,000,000.00
03/16/2005
First United Bank
08/13/2004
1.770
1,000,000.00
02/11/2005
First United Bank
10/14/2004
2.040
2,000,000.00
04/14/2005
Mission Federal Credit Union
07/15/2004
1.750
10,000,000.00
01/13/2005
Mission Federal Credit Union
09/01/2004
1.850
10,000,000.00
03/02/2005
Neighborhood National Bank
08/20/2004
1.710
2,000,000.00
01/21/2005
Neighborhood National Bank
08/04/2004
1.820
2,000,000.00
02/02/2005
SAN FRANCISCO
America California Bank
09/03/2004
1.640
2,000,000.00
12/03/2004
America California Bank
07/08/2004
1.650
4,000,000.00
01/06/2005
America California Bank
09/29/2004
1.780
2,000,000.00
01/07/2005
Citibank (West) FSB
07/08/2004
1.700
150,000,000.00
01/06/2005
Citibank (West) FSB
07/15/2004
1.750
100,000,000.00
01/13/2005
Citibank (West) FSB
07/21/2004
1.750
100,000,000.00
01/20/2005
Citibank (West) FSB
07/28/2004
1.800
25,000,000.00
01/26/2005
Citibank (West) FSB
07/15/2004
1.750
25,000,000.00
01/26/2005
Oceanic Bank
09/10/2004
2.160
4,000,000.00
09/13/2005
Trans Pacific National Bank
06/23/2004
1.730
1,000,000.00
12/22/2004
Trans Pacific National Bank
08/05/2004
1.830
1,000,000.00
02/03/2005
Trans Pacific National Bank
09/23/2004
1.980
1,000,000.00
03/24/2005
Trans Pacific National Bank
10/13/2004
2.050
1,000,000.00
04/13/2005
United Commercial Bank
09/01/2004
1.620
50,000,000.00
12/01/2004
United Commercial Bank
09/03/2004
1.620
25,000,000.00
12/03/2004
United Commercial Bank
09/10/2004
1.720
25,000,000.00
12/10/2004
United Commercial Bank
09/17/2004
1.710
65,000,000.00
12/17/2004
United Commercial Bank
10/07/2004
1.800
40,000,000.00
01/13/2005
United Commercial Bank
10/08/2004
1.800
55,000,000.00
01/13/2005
United Commercial Bank
10/14/2004
1.730
50,000,000.00
01/14/2005
United Commercial Bank
11/24/2004
2.190
20,000,000.00
02/23/2005
24
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SAN FRANCISCO (continued)
United Commercial Bank 10/27/2004 2.110 40,000,000.00 04/27/2005
SANJOSE
Comerica Bank
10/01/2004
1.770
25,000,000.00
01/07/2005
Comerica Bank
09/23/2004
1.800
25,000,000.00
01/07/2005
Heritage Bank of Commerce
08/11/2004
1.740
4,000,000.00
02/09/2005
Meriwest Credit Union
07/21 /2004
1.690
5,000,000.00
01 /20/2005
Meriwest Credit Union
09/15/2004
1.900
5,000,000.00
03/16/2005
Meriwest Credit Union
10/13/2004
2.050
10,000,000.00
04/13/2005
Santa Clara Co. Federal Credit Union
11/05/2004
2.020
7,500,000.00
02/04/2005
Santa Clara Co. Federal Credit Union
11/05/2004
2.250
7,500,000.00
05/06/2005
SAN LUIS OBISPO
First Bank Of San Luis Obispo
06/04/2004
1.500
4,500,000.00
12/03/2004
First Bank Of San Luis Obispo
08/11/2004
1.740
6,000,000.00
02/09/2005
First Bank Of San Luis Obispo
09/15/2004
1.930
7,000,000.00
03/16/2005
First Bank Of San Luis Obispo
09/24/2004
1.970
5,000,000.00
03/25/2005
Mission Community Bank
06/10/2004
1.600
1,000,000.00
12/09/2004
Mission Community Bank
09/02/2004
1.850
1,000,000.00
03/03/2005
Mission Community Bank
10/06/2004
2.050
2,500,000.00
04/06/2005
Mission Community Bank
10/27/2004
2.110
2,500,000.00
04/27/2005
San Luis Trust Bank
10/20/2004
2.000
1,700,000.00
04/20/2005
SAN MARINO
East West Bank
09/10/2004
1.710
85,000,000.00
12/10/2004
East West Bank
10/06/2004
1.740
3,000,000.00
01/07/2005
East West Bank
10/01/2004
1.770
5,000,000.00
01/07/2005
East West Bank
10/08/2004
1.740
42,000,000.00
01/07/2005
East West Bank
11/05/2004
2.000
35,000,000.00
02/04/2005
East West Bank
11/18/2004
2.180
38,000,000.00
02/17/2005
SANTA ROSA
National Bank of the Redwoods 07/21/2004 1.710 10,000,000.00 01/20/2005
National Bank of the Redwoods 08/11/2004 1.730 5,000,000.00 02/09/2005
National Bank of the Redwoods 10/28/2004 2.140 5,000,000.00 04/28/2005
25
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SONORA
Central California Bank 09/24/2004 1.970 5,000,000.00 03/25/2005
STOCKTON
Pacific State Bank
07/08/2004
1.630
1,000,000.00
01/06/2005
Pacific State Bank
10/06/2004
2.030
1,000,000.00
04/06/2005
Union Safe Deposit Bank
09/02/2004
1.670
15,000,000.00
12/02/2004
Union Safe Deposit Bank
09/10/2004
1.720
10,000,000.00
12/10/2004
Union Safe Deposit Bank
10/15/2004
1.780
10,000,000.00
01/14/2005
Union Safe Deposit Bank
10/22/2004
1.880
15,000,000.00
01/21/2005
Union Safe Deposit Bank
11/04/2004
2.040
15,000,000.00
02/03/2005
Union Safe Deposit Bank
11/12/2004
2.140
15,000,000.00
02/11/2005
Washington Mutual Bank, FA
06/16/2004
1.780
45,000,000.00
12/15/2004
Washington Mutual Bank, FA
07/21/2004
1.720
75,000,000.00
01/20/2005
Washington Mutual Bank, FA
08/20/2004
1.790
60,000,000.00
02/1812005
TORRANCE
China Trust Bank (USA)
09/10/2004
1.720
35,000,000.00
12/10/2004
China Trust Bank (USA)
10/15/2004
1.770
40,000,000.00
01/14/2005
China Trust Bank (USA)
11/12/2004
2.130
20,000,000.00
02/11/2005
China Trust Bank (USA)
10/22/2004
2.090
30,000,000.00
04/22/2005
TRACY
Service 1 st Bank
06/17/2004
1.750
2,000,000.00
12/16/2004
TUSTIN
Sunwest Bank
09/08/2004
1.690
1,000,000.00
12/08/2004
Sunwest Bank
10/15/2004
1.770
6,000,000.00
01/14/2005
Sunwest Bank
11/10/2004
2.100
7,800,000.00
02/09/2005
VACAVILLE
Travis Credit Union 06/02/2004 1.410 40,000,000.00 12/01/2004
WALNUT CREEK
Bank of the West 09/16/2004 1.710 82,000,000.00 12/16/2004
Bank of the West 10/08/2004 1.780 134,000,000.00 01/14/2005
Bank of the West 10/29/2004 1.950 176,500,000.00 01/28/2005
3.1
NAME
TIME DEPOSITS
DEPOSIT
DATE
WALNUT CREEK (continued)
Bank of the West 11/19/2004
WHITTIER
Quaker City Bank 06/04/2004
Quaker City Bank 07/14/2004
Quaker City Bank 09/29/2004
TOTAL TIME DEPOSITS NOVEMBER 2004
27
PAR MATURITY
YIELD AMOUNT ($) DATE
2.170 242,000,000.00 02/18/2005
1.490 25,000,000.00 12/03/2004
1.680 24,000,000.00 01/12/2005
1.850 16,000,000.00 01/28/2005
6,336,795,000.00
BANK DEMAND DEPOSITS
November 2004
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 1,108,019
$ 2,574,920
2
994,357
2,082,552
3
1,077,659
1,887,411
4
710,650
2,133,811
5
791,021
2,780,855
6
791,021
2,780,855
7
791,021
2,780,866
8
858,763
2,789,464
9
891,764
2,823,355
10
985,966
2,767,839
11
985,966
2,680,126
12
627,831
2,680,126
13
627,831
2,680,126
14
627,831
2,680,126
15
750,112
2,240,948
16
767,484
2,074,521
17
859,006
1,888,627
18
780,595
2,182,241
19
915,593
2,202,130
20
915,693
2,202,130
21
915,593
2,202,130
22
727,892
1,842,129
23
738,213
2,020,863
24
408,940
1,897,608
25
408,940
1,897,608
26
820,905
1,897,608
27
820,905
1,897,608
28
820,905
1,897,608
29
650,794
2,049,452
30
563,597
2,145,330
al
AVERAGE DOLLAR DAYS
$ 791,159 -`
al The prescribed bank balance for November was $825,855. This consisted of
$635,442 in compensating balances for services, balances for uncollected
funds of $194,176 and a deduction of $3,763 for November delayed
deposit credit.
28
DESIGNATION BY POOLED MONEY INVESTMENT BOARD
OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS
In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its
meeting on November 17, 2004, has determined and designated the amount of money available for deposit and investment
under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the
money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in
securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management,
and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ-
actions, and for investment in securities and the type of such deposits and investments as follows:
1. In accordance with law, for deposit in demand
bank accounts as Compensating Balance for Services
No. 1665
$ 635,442,000
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 arnount
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)
11/15/04
11/19/04
$
453,700,000
(2)
11/22/04
11/26/04
$
(149,900,000)
(3)
11/29/04
12/03104
$
(291,300,000)
(4)
12/06/04
12/10/04
$
1,174,700,000
(5)
12/13/04
12/17/04
$
2,862,600,000
In Securities
(section 16430)*
$ 49,508,505,000
$ 49,358,605,000
$ 49,067,305,000
$ 50,242,005,000
$ 53,104,605,000
Time Deposits in
Various Financial
Institutions
(sections 16503a
and 16602)*
$ 6,341,795,000
$ 6,341,795,000
$ 6,341,795,000
$ 6,341,795,000
$ 6,341,795,000
Estimated
Total
$ 55,850,300,000
$ 55,700,400,000
$ 55,409,100,000
$ 56,583,800,000
$ 59,446,400,000
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 $ 635,442,000,
Dated: November 17, 2004
* Government Code
POOLED MONEY INVESTMENT BOARD:
Signatures on file at STO and SCO
Chairperson
Member
Member
BOARD MEMBER ITEMS
For IAB meeting on May 12, 2004
If the IAB favors changing the IP for 2004-5 to cover the engagement of professional
investment managers or advisors, here are suggested modifications to the governing
ordinance and to sections of the IP to allow for that with minimal changes. If deemed
desirable, additional provisions can be added after further consideration and direction.
Ordinance Section 3.08.020
Add to end of existing sentence:
The city may engage professional investment portfolio managers or advisors to
assist the city treasurer administer this delegated authority.
Investment Policy
Executive Summary, page 2, last paragraph, add after second sentence:
The City Treasurer may use a professional investment portfolio manager or
advisor engaged by the City to assist the City Treasurer administer the delegated
authority to manage the investment program.
Section VII, add as a last paragraph:
With the approval of the City Manager and the City Council, the City may engage
professional investment portfolio managers or advisors to assist the City Treasurer
administer the delegated authority to manage and invest the City's funds. Before
engagement by the City, except as may be specifically waived or revised, the
professional manager or advisor shall commit to adhere to the provisions of the
City of La Quinta Investment Policy and shall document that they are
appropriately registered and licensed by governing bodies.