2006 03 08 IABr�
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLE TAMPICO (760) 7 7 7 - 7 0 0 0
LA QuiNTA, CALIFORNIA 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
March 8, 2006 - 5:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II PUBLIC COMMENT - (This is the time set aside for public comment on any matter
not scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on February 8, 2006 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for January 2006
B. Consideration of Fiscal Year 2006/07 Investment Policies
C. California Municipal Treasurer's Conference - Monterey, CA
April 26 - 28, 2006
D. Desert Sun Investment Advisory Board Notice
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
February 2006
B. Pooled Money Investment Board Reports - December 2005
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT
0
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: March 8, 2006
ITEM TITLE:
Transmittal of Treasury Report
for January 31, 2006
BACKGROUND:
Attached please find the Treasury Report January 31, 2006
Staff will discuss the exception to the City policy as outlined on the first page of
the Report and the attached memorandum.
Also included is a maturity listing of investments yielding less than 4% and their
maturity dates as requested by Board Member Olander.
RECOMMENDATION:
Review, Receive and File the Treasury Report for January 31, 2006
John M. Falconer, Finance Director
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurer's Report for January 31, 2006
DATE: February 28, 2006
Attached is the Treasurer's Report for the month ending January 31, 2006. 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
Beqinning
Purchased
Notes
Sold/Matured
Other
Ending
Chan e
Cash (3)
$ (457,277)
$ 11,354
(1)
($445,923)
$11,354
LAIF
17,209,320
2,989,932
(1,200,000)
18,999,252
1,789,932
US Treasuries (2)
132,200,167
34,000,000
(2)
(33,946,000)
(372,151)
131,882,016
(318,151)
US Gov't Sponsored Enterprises (2)
29,837,557
19,500,000
(2)
(9,500,000)
(128,809)
39,708,748
9,871,191
Commercial Paper (2)
-
9,000,000
(2)
(22,324)
8,977,676
8,977,676
Corporate Notes
Mutual Funds
-
5,722,756
851,599
1
0
6,574,355
0
851,599
Total
$ 184,512,523
$ 66,352,885
$ 44,646,000
$ 523,284
$ 205,696,124
$ 21,183,601
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 except as follows:
The Federal Home Loan Bank maximum was exceeded on January 18, 2006, as reported on page 2, and
is expected to come into conformity on December 15, 2006. As of February 28, 2006, the market of the investment
value was $7,481,250 and the amortized cost was $7,497,765 for an unrealized loss of $16,515.
Management intends to hold the investment to maturity.
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.
2—0D 6
Date
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.
(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.
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City of La Ouinta
Reconciliation of Actual and Surplus Funds
City, Redevelopment Agency and Financing Authority
January 31,2006
Balance of Actual Funds 205,696,124
Less Petty cash Funds (1,000)
Less Non -Surplus Funds (1,795,048)
Balance of Surplus Funds $ 203,900,076
City Cash & Investments
Bank Accounts
Name - Availability
Surplus
Type
Book
Wells Fargo - Demand
No
Checking
$ (467,009)
Petty Cash - Demand
No
N/A
1,000
Wells Fargo/Housing - Demand_
Yes
Checking
20,086
Total - Bank Accounts
$ 445,923
U S. Treasury
Amortized
Custodian -Availability_____
Sur lus
Issuer/Type
Value
Bank of New York - Demand
Yes
U.S. Treasury Bill
8,913,411
Bank of New York - Demand
Yes
U.S. Treasury Bill
9,885,628
Bank of New York - Demand
Yes
U.S. Treasury Bill
4,934,977
Bank of New York - Demand
Yes
U.S. Treasury Bill
9,894,793
Bank of New York - Demand
Yes
U.S. Treasury Note
3,950,206
Bank of New York - Demand
Yes
U.S. Treasury Note
4,939,547
Bank of New York - Demand
Yes
U.S. Treasury Note
4,981,361
Bank of New York - Demand
Yes
U.S. Treasury Note
5,000,578
Bank of New York - Demand_
Yes
U.S_. Treasury Note
4,985,272
Total- U.S. Treasury
57,485,773
U S Government Sponsored Enterprises
Custodian - Availability __
Surplus
Issuer/Type
Amortized
Value
_
Bank of New York - Demand
Yes
FHLB
4,967,029
Bank of New York - Demand
Yes
FHLB-Discount
2,885,620
Bank of New York - Demand
Yes
FHLB
1,985,472
Bank of New York - Demand
Yes
FHLB
7,497,765
Bank of New York - Demand
Yes
FNMA
5,004,721
Bank of New York - Demand
Yes
FARM CREDIT
4,990,357
Bank of New York - Demand
Yes
FHL Mortgage
2,516,233
Bank of New York - Demand
Yes
FARM CREDIT
4,966,196
Bank of New York - Demand
Yes
FNMA
4,895,355
Total - U.S. Government Securities
_
39,708,748
Prime Commercial Paper
Book
Custodian -_Availability Sur I"
Issuer/T
Value
Bank of New York -Demand
Yes
General Electric Co
2,992,567
Bank of New York - Demand
Yes
Nestle Capital Corp
2,992,575
Bank of New York - Demand
Yes
CitiGroup Fundin Inc
2,992,534
-Total- Prime Commercial Paper
$977,676
Local Agency Investment Fund
-Availability
Surplus
Type
Book
_Name ___ _
LAIF - City -Demand
Yes
State Pool
15,298,012
LAIF - RDA - Demand
Yes
State Pool
3,701,240
Total - State Pool
18,999,252
Total City Investments
Total City Cash & Investments
Fiscal Agent Investments
Surplus
Surplus
Yes
Ad'
Yes
20,086
20,086
_
$ 20,086
$
$ 20,086
Surplus
Surplus
Yes
Adj
Yes
8,913,411
8,913,411
9,885,628
9,885,628
4,934,977
4,934,977
9,894,793
9,894,793
3,950,206
3,950,206
4,939,547
4,939,547
4,981,361
4,981,361
5,000,578
5,000,578
4,985,272
4,985,272
57,485,773
_
57,485,773
Surplus
Yes
Ad'
Surplus
Yes
4,967,029
4,967,029
2,885,620
2,885,620
1,985,472
1,985,472
7,497,765
.
7,497,765
5,004,721
5,004,721
4,990,357
4,990,357
2,516,233
2,516,233
4,966,196
4,966,196
4,895,355
_
_4,895,355
Surplus
Surplus
Yes
Adj
Yes
2,992,567
2,992,567
2,992,575
2,992,575
2.992,534
2,992,534
8,977,676
8,977,676
Surplus
Surplus
Yes
Ad
Yes
15,298,012
(2,262,057)
_
13,035,955
3,701,240
3,701,240
18,999,252
(2,262,057)
16,737,195
Surplus
Surplus
No
Ad
No_ ---
$ (467,009)
$ 2,262,057
$ 1,795,048
1,000
1,000
$ (466,009)
$ 2,262,057
$ 1,796,048
Surplus
No----
Adj
Surplus
--- No-- —
Surplus
No
Adj__ _+
Surplus
No___ _
_
Surplus Surplus
No Ad' No
All Funds I Surplus
Actual % Yes
0.21681. 0.0099%
All Funds Surplus
Actual % L Yes
27.9469 % 28.1931
All Funds Surplus
Actual % Yes
I
i
19.30469/ 19.4746%
All Funds Surplus
Actual % Yes
4,3645 % 4.4030
Surplus Surplus All Funds Surplus
-_ No Actual % Yes
---- --
_ I. 9.2366 % 8.2085
iixiii i25.171,449 f2,262,057) �
124,725,52 F 125,191,535 2,262,057 122,929,478 466,009 2,262,057 1 1,796,048 60.6358% 60.2891%
Portfolio - City Investments
Amortized
Custodian - Availability
Sur lus
Issuer/Type
Value
2002 RDA U.S Bank-CIP
Yes
U.S.Treasury Bill
10,046,402
2004 Finance Authority -CIP
Yes
U.S.Treasury Bill
29,491,307
2004 Finance Authority -CIP
Yes
U.S.Treasury Bill
9,948,715
2004 Finance Authority -CIP
Yes
U.S.Treasu Note
24,909,819
Total- U.S.Treasury_
74,396,243
Portfolio - Mutual Funds
Trustee - Availability
Surplus
Money Market
Mutual Fund
Book
Value
_
Civic Center U.S.Bank - Project
YES
1st American
-
Civic Center U.S Bank - Debt Svc
YES
1st American
177
1994 RDA U.S. Bank -Debt Svc
YES
1st American
1995 RDA U S.Bank - CIP
I YES
1st American
1995 RDA U.S.Bank - Special Fund
YES
I 1st American
2004 Fin Auth - 1995 US Bank - Escrow
YES
1st American
1998 RDA U.S.Bank -CIP
YES
1st American
1998 RDA U.S.Bank - Dbt Svc
YES
1st American
1998 RDA U.S.Bank - Special Fund
YES
1st American
1998 RDA U S.Bank - CIP
YES
1st American
2001 RDA U.S. Bank - Dbt Svc
YES
1st American
2001 RDA U.S Bank - CIP
YES
1st American
2002 RDA U.S. Bank - Dbt Svc
YES
1st American
2002 RDA U.S. Bank - CIP
YES
1st American
2,189,511
2003 Taxable RDA U.S. Bank - DS
YES
1st American
-
2003 Taxable RDA U S. Bank -COI
YES
1st American
2003 Taxable RDA U. S. Bank-CIP
YES
1st American
-
2004 Fin Auth US Bank - CIP
YES
1st American
4,384,667
2004 Fin Auth US Bank - C01
YES
1st American
Subtotal - Mutual Fund
1 6,574,355
Surplus
Surplus
Yes
Ad
Yes
10,046,402
10,046,402
29,491,307
29, 491, 307
9,948,715
9,948,715
24,909,819
24,909,819
74,396,243
74,396,243
Surplus
Yes
Adj
Surplus
Yes
177
177
i -
2,189,511
2,189, 511
4,384,667
4,384,667
6,574,355
6,574,355
Surplus
No__
Ate_ _
Surplus
_ No
Surplus
No
A�No
Surplus
I
i
All Funds Surplus
Actual %_ Yes
i
i
36.1680 % T 36.4866%
Total Fiscal Agent Investments 80,970,598 80,970,598 80,970,598 39.3642% 1 39.7109%
Grand Total 205,696,124 1 206,162,133 1 (2.262,057)1 203,9007076 466,009 2,262,057 1 1,796,048 1 1100.0000%1100-0000%
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MEMORANDUM
TO: Thomas P. Genovese, City Manager
FROM: John M. Falconer, Finance Director/Treasurer
DATE: March 2, 2006
RE: Federal Home Loan Bank Investment of 1 /18/2006
During the preparation of the January 2006 Treasurer's report, staff discovered that
the $10 million Federal Home Loan Bank limitation had been exceeded which will be
reported on the January 2006 Treasurers Report. The $10 million limitation in our
investment policy is more restrictive than the State Code which has not been
exceeded. I have investigated this exception and have determined the following:
On January 17, 2006, 1 received the City Manager approval to roll over a maturing
$7,500,000 Federal Home Loan Mortgage Corporation (Freddie Mac - FHLMC)
investment. (Attachment 1).
However, the actual security delivered by the broker, and accepted by me was a
Federal Home Loan Bank (FLHB) security. (Attachment 2) As a result, the Federal
Home Loan limit has been exceeded by the $7,500,000 and will not return to
compliance until December 2006 when other FHLB investments mature.
The options available at this time are to either sell the security or to continue to
report the exception. I would not recommend selling the investment because (1) it
is AAA rated and (2) it would result in a loss due to the increase of interest rates
from the purchase date.
I would recommend continuing to report the exception in the monthly Treasurer's
report until either the market value would exceed the cost, in which case the
investment would be sold, or until December 31, 2006 when other FHLB
investments mature. As of February 28, 2006, the Bank of New York reported a
market value of $7,481,250 with an amortized book value of $7,497,765 for an
unrealized loss of $16,515. (Attachment 3)
apologize for this exception to the investment policy and would ask for your
concurrence with my recommendation. Thank you
Approve
Disapprove
12
ATTACHMENT 1
uArc
MEMORANDUM
TO: Thomas P. Genovese, City Manager
FROM: John M. Falconer, Finance Director/Treasurer
DATE: January 17, 2006
RE: Purchases of Securities Authorization
In order to diversify the portfolio and in accordance with the investment policies, I am requesting
authorization to purchase $7.5 million in Freddie Mac Paper with a one year maturity. I anticipate
doing the investment on .the 17th of January with settlement on the 18th of January.
Approval Crpr
Disapproval
13
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City of La Quinta
Investments Yielding Less than 4% and Maturity Dates
As of January 31, 2006
Discount/
Par
Issuer/T e
Rate
Value
FNMA
5.500%
5,000,000
U.S. Treasury Note
1.500%
5,000,000
U.S. Treasury Note
2.500%
5,000,000
U.S. Treasury Note
2.750%
5,000,000
Farm Credit
2.125%
5,000,000
25,000,000
Settlement Maturity Yield to
Date Date _Ma turit
2/1 /2005
2/15/2006
3.140%
9/30/2005
3/31 /2006
3.857%
06/01 /2004
5/31 /2006
2.464%
6/30/2005
6/30/2006
3.488%
5/31 /2005
7/17/2006
13.650%
17
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: February 8, 2006
TITLE:
Consideration of Fiscal Year 2006/07
Investment Policies Investment & Work Plan Items
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 1st
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.
In addition, at the July Investment Advisory Board meeting the following work plan
items were discussed and subsequently approved by the City Council in August
2006.
• Meeting with City Council to discuss using a Portfolio Manager, which
acceptable, would require Ordinance change and a request for proposal for such
services;
• Continue to monitor developments regarding Government Sponsored Enterprises
(GSE's) LAIF, Corporate Note and Commercial Paper and
• Discussion of Cash Utilization
RECOMMENDATION:
Continued review of the Investment policies for approval by City Council in June
2006 and discussion of work plan items.
� G
John M. Falconer, Finance Director
PLEASE BRING YOUR CURRENT COPY OF THE INVESTMENT POLICY
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: March 8, 2006
TITLE:
California Municipal Treasurer's Conference - Monterey, CA
April 26 - 28, 2006
BACKGROUND:
Each year the City budgets funds for the Treasurer and two Investment Advisory Board
members to attend the Treasurers Conference.
Staff is requesting the names of those interested in attending be given at the
Investment Advisory Board Meeting on the 8t'', in order to take advantage of the
discounted registration deadline of March 10t`'
RECOMMENDATION:
Select up to two Board members to attend the Treasurer's Conference.
Lxi'z
John M. Falconer, Finance Director
CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION
Conference Registration Form
Monterey Mariott Hotel
April 24 — 25, 2006 Pre -Conference
April 26 — April 28, 2006 Conference
California Municipal Treasurers Association
You must be a current CMTA Member (Active/Government Associate/Sustaining) to register. If you need to verify that your membership is
current, please contact Debbie Michel at CMTA's Sacramento office at (916) 658-8209. If you have any questions regarding conference
registration, call Mike Reynolds at the City of Redlands at (909) 798-7544. Please use a separate form for each registrant (photocopies
accepted). (THIS FORM IS NOT VALID FOR COMMERCIAL ASSOCIATE MEMBERS.)
Name (Please print or Type) Title Organization
Mailing Address City State Zip
Phone Fax E-Mail Address
Name you prefer on Badge Spouse/Guest Name
Is this your first CMTA Conference? (yes or no) Special dietary needs? (yes or no)
Will you be attending the Thursday evening Banquet? (yes or no)
Registration Fees
Pre -Conference Seminar [Active or Government Associates]
Pre -conference Seminar only
Pre -Conference Seminar if also attending conference
Conference
Active or Government Associate
Includes all meals, receptions & Thursday Banquet
Second registrant from same organization
Includes all meals, receptions & Thursday Installation Banquet
$ 145.00
$ 135.00
Postmarked
Early (on or before 3/10//06) $ 280.00
Regular (on or before 4/03/06) $ 305.00
Late (after 4/03/06) $ 365.00
Early (on or before 3/10/06)
Regular (on or before 4/03/06)
Late (after 4/03/06)
Daily Conference Registration 1 _I Wednesday 1_i Thursday Daily Rate _
Available only if another person from your same agency has paid full conference registration
Includes breakfast & lunch only
$ 250.00
$ 275.00
$ 365.00
x $ 200.00
Additional Meals
Spouses & Guests Wednesday Lunch X $ 35.00 $
Thursday Lunch X $ 35.00 $
Thursday Banquet X $ 75.00 $
Total Fees $
Please make checks payable to "CMTA 2005 Conference". Mail to: Michael Reynolds, City Treasurer, P.O. Box 3005, Redlands, CA 92373-
1505.(A pre -addressed envelope has been included for your convenience.) Advance registrants unable to attend may receive a refund of the
registration fee less $25.00 processing fee by submitting a written request to CMTA at the same address or fax (909) 792-6623 by April 12,
2006. No refunds will be made if requested after that date. Substitute attendees will be accepted at any time.
2
Monday, April 24
Pre -Conference Workshop
1: 00 p. m. — 5: 00 p.m.
Debt Restructuring- Learn the techniques the experts use to evaluate the restructuring of your
agency's debt. When is the right time to restructure? How to go about
determining if it makes sense to restructure? Explore the present value
savings rule (3%) and other factors to use in your restructuring evaluation.
If the restructuring calculations work to your Agency's advantage, then
evaluate your investment banking options — negotiated or competitive
sale? Explore the importance of marketing and selling your agency to the
credit markets and learn how this can save your agency money through
lower interest costs!
Tuesday, April 25
Pre -Conference Workshop
8: 00 a.m. — 12:00p.m.
Stop That Fraud- This four-hour workshop developed by the Public Treasury Institute of
North America is the most comprehensive fraud prevention program for
public treasury and finance officials in the nation! A handbook will be
distributed along with a certificate of completion following the workshop.
Wednesday, April 26
Conference Opening Session
9: 00 a.m.
Opening Speaker- "Roger Crawford" Roger is a dynamic and inspirational speaker who
works with many organizations that wish to achieve success despite
obstacles. Roger's clients are inspired to hold winning attitudes about
work and life.
10:45 a.m.
Technology Crimes and Fraud Prevention- Hear the latest information from the Federal
Bureau of Information (FBI) on technology crimes and fraud prevention.
The bad guys are trying to get at your bank account every day; learn how
to prevent a loss_ at your agency by becoming informed about the latest
white collar crimes
3
12: 00 p. m.
Keynote Luncheon Speaker - Ana Cabral, United States Treasurer (Invited) will discuss
the latest news from the United States Department of the Treasury. What
is Washington doing to maintain good monetary policy and increase the
savings rate in this country?
1: 45 p. m.
How Managers Can Become Leaders- Do you know the difference between a manager
and a leader? Set yourself apart from your fellow managers and learn the
difference. Find out the simple methods great leaders use to motivate
themselves and others to make a difference in their business and personal
lives.
3: 00 p. m.
Economic Forecast- Learn how economists using demographics over the past century have
been able to predict future trends in the capital markets. Then gain some
insight from an economist on where the United States and California
economy is heading in 2006.
Concurrent Sessions
4: 00 p. m.
Get Your Revenue Measure Passed! - Learn from a successful consultant in finance
measure campaign services. Get helpful tips about strategy and tactics,
ballot arguments and rebuttals, campaign management, using the media
I nd direct mail, grassroots organizing, vote by mail and other `get -out -the -
vote" techniques.
4: 00 p. m.
Options Ideas For Small Portfolio- Find out what you can do to safely maximize your
portfolio returns. Learn how to evaluate different types of investment
options and appropriate levels of diversification based on the size of your
investment portfolio.
4: 00 p. m.
Arbitrage Rebates and Yield Restrictions What Every Treasurer Must Know- Do
you know the Internal Revenue Code sections that apply to every bond
issue? Have you complied with the rebate calculations? Do you know the
yield restrictions on your bonds? Also, learn some tips on getting the
maximum return safely from your construction and reserve funds.
2
Thursday, April 27
7: 45 a.m.
Business Session (Plated Breakfast) - All conference attendees will enjoy breakfast with
their CMTA colleagues during the Annual Business Meeting.
9: 00 a.m.
Mastering Press Relations- Listen to what an expert says you must know before you talk to
the press or media. Learn special tips and helpful advice to better prepare
yourself to respond to the press or media. Become skilled at working more
effectively with the press and media and make them work towards your
advantage.
10:30 a.m.
Agency Securities a look behind the scenes "What are they selling now?" - The
Assistant Treasurer of Freddie Mac will discuss the tactics behind why
they issue debt with so many variables to the investor. Learn what is on
the horizon and the "new" products ahead in the Agency markets.
12: 00 p. m.
Keynote Luncheon Speaker — Kathleen Brown, Senior Advisor, Head of Public Finance
Goldman Sachs Co and former California State Treasurer is responsible
for bringing public financings to the investment community. She will
share her insights on "Public Private Partnerships — A New Fad or Wave
of the Future"
Concurrent Sessions
2: 00 p. m.
Finding Value in the Market — Hear an investment advisor discuss techniques and
strategies for finding value for your investment portfolio. Get information
on due diligence assessment of various risk factors and portfolio
evaluation (benchmarking, total return) and rebalancing.
2: 00 p.m.
Electron ification of your Receivables — Learn the cutting edge technology that is now
being used to collect receivables, including the latest on remittance
processing and remote image capturing that speeds your agency's
collections.
-01
Concurrent Sessions (continued)
2: 00 p. m.
LAIF 2006 and Beyond - The Director of Investments and LAIF Administrator will provide
insight into what is on the horizon at LAIF, what is LAIF's current
strategy in the market and how will the LAIF portfolio be positioned in
2006.
3:1 S p. m.
Nuts & Bolts Government Associates- This is a chance to ask questions and have your
questions answered by your colleagues.
3:1 S p. m.
Nuts & Bolts Commercial Associates- This is the time for the Commercial Associates to
get together and discuss common issues.
Friday, Apri128
9: 00 a.m.
CALPERS Rates, Investments and Pension Reform — Listen to the Chief Actuary at
CALPERS discuss the latest information of the employer rates for FY
2007/2008. Hear the latest proposals by PERS to further stabilized
employer rates and what impact all the pension reform proposals may
have on future PERS rates.
10:1 S a.m.
Economic and Budget Outlook — Hear the Director.of Fiscal Forecasting and Budget at the
Legislative Analyst's Office gives us the State's financial outlook for the
coming year and insight into the Governor's and Legislature's 2006-2007
Budget Proposals.
L
INVESTMENT ADVISORY BOARD Business Session: D
Meeting Date: March 8, 2006
TITLE:
Desert Sun Investment Advisory Board Notice
BACKGROUND:
As outlined in the February 2006 minutes, Staff was requested to bring this item back
for which includes Board Member Moulin's suggested language and the February
2006 attachments.
RECOMMENDATION:
Information item only.
� r#
John M. Falconer, Finance Director
December 22, 2005
To: John Falconer
From: Don Moulin
Subject: City's Notice to Public Seeking Applicants for IAB
As we discussed, the City Clerk's public notice seeking applicants for appointment to the
IAB needs updating. Here is a suggested middle paragraph.
The Investment Advisory Board's primary responsibilities are to review the
monthly Treasurer's reports and the City's annual investment policy statement.
The Board also makes recommendations for changes in policies and procedures
and the selection of providers of investment services. Applicants should have a
background in finance, preferably with knowledge and/or experience in markets,
controls and accounting for securities.
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item C
Meeting Date: February 8, 2006
TITLE:
Desert Sun Investment Advisory Board Notice
BACKGROUND:
At the last scheduled Board Meeting, Board Member Moulin asked to bring back the
Desert Sun Investment Advisory Board Notice for review.
Attached please find the notice that was published in the Desert Sun as well as the
Municipal Code Chapter 2.70 Investment Advisory Board.
RECOMMENDATION:
Information item only.
YJohn�-M. Falconer, Finance Director
FEB-02-2006 THU 11:24 AM THE DESERT SUN BD OFC FAX NO. 7602002904 P. 01
� 1 I
j .•r
THE CITY OF. LA QUINTA IS
LOOKING FOR AN INVESTMENT
ADVISORY BOARD MEMBERS
.LFI
I f
The City of La Quinta is seeking interested citizens to:.fill a
vacancy on its. Investment Advisoryboard. If you are a resident
of the' -City of La Quinta and would like to serve your community,
the position involves the following:
Investment Advisory Board - The Investment Advisory
Board is a'fiye-member Board that reviews account statements
and verifications to ensure accurate reporting as they relate to an
1
' investment activity. 'The' Board makes recommendations -
concerning investment policy and procedures, investment
contracts, and :investment consultants. Selected candidates will
have a background In the : investment field and/or . rela#ed
experience. La Quinta. residency is a requirement' for. board'
members.
Interested members of .the public .may contact - the
Office of the City Clerks ,at V60) 777-7103 for an official
application and other information. The' deadline for
submitting applications is Tuesda December 27
1 Y� , 2005
at 5:00•PM. The City Council is expected to consider
I applications and make. their selection at their regular. -
meeting to be held on January 3,- 2006.
SQ V11.
INVESTMENT ADVISORY BOARD
Meeting Date: March 8, 2006
TITLE:
Month End Cash Report February 2006
BACKGROUND:
Correspondence & Written
Material Item A
This cash report is not a complete Treasury Report (exclude petty cash, deferred
compensation and fiscal agent balances), but would report in a timely fashion
selected cash balances.
RECOMMENDATION:
Information item only.
John M. Falconer, Finance Director
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 1, 2006
Pagel of 4
Federal Reserve Statistical Release
HA
Selected Interest Rates(Daily)
'skip to Conlcnt
Release Date: March 1, 2006
Weekly release dates and announcements I Historical data I About
Daily update Other formats: Screed reader I !ASCII
........__........_._......_... .
The weekly release is posted on Monday. Daily updates of the weekly release are posted T
through Friday on this site. If Monday is a holiday, the weekly release will be posted o
after the holiday and the daily update will not be posted on that Tuesday.
FEDERAL RESERVE STATISTICAL RELEASE
H.15 DAILY UPDATE: WEB RELEASE ONLY
SELECTED INTEREST RATES
For use at 4:15 p.m. Eastern Time
Yields in percent per annum March 1, 2006
2006
2006
Instruments
Feb
Feb
27
28
Federal funds (effective) 1 2 3
4.52
4.52
Commercial Paper 3 4 5
Nonfinancial
1-month
4.51
4.49
2-month
4.55
n.a.
3-month
n.a.
n.a.
Financial
1-month
4.49
4.52
2-month
4.62
4.62
3-month
4.69
4.70
CDs (secondary market) 3 6
1-month
4.58
4.59
3-month
4.79
4.78
6-month
4.95
4.95
Eurodollar deposits (London) 3 7
1-month
4.62
4.63
3-month
4.81
4.82
6-month
4.98
4.98
Bank prime loan 2 3 8
7.50
7.50
Discount window primary credit 2 9
5.50
5.50
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
4.40
4.39
3-month
4.51
4.51
6-month
4.59
4.57
Treasury constant maturities
Nominal 10
1-month
4.48
4.47
3-month
4.62
4.62
6-month
4.76
4.74
http://www.federalreserve.gov/Releases/H I 5/update/ 3/1/1006
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FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 1, 2006
Page 2 of 4
1-year
4.76
4.73
2-year
4.74
4.69
3-year
4.71
4.67
5-year.
4.66
4.61
7-year
4.61
4.57
10-year
4.59
4.55
20-year
4.74
4.70
30-year
4.55
4.51
Inflation indexed 11
5-year
1.96
1.93
7-year
2.01
1.99
10-year
2.04
2.02
20-year
2.01
1.98
Inflation -indexed long-term average 12
1.96
1.93
Interest rate swaps 13
1-year
5.15
5.13
2-year
5.13
5.09
3-year
5.11
5.07
4-year
5.10
5.07
5-year
5.10
5.08
7-year
5.10
5.08
10-year
5.10
5.09
30-year
5.09
5.10
Corporate bonds
Moody's seasoned
Aaa 14
5.34
5.31
Baa
6.24
6.20
State & local bonds 15
Conventional mortgages 16
n.a. Not available.
Footnotes
1. The daily effective federal funds rate is a weighted average of rates on brokered tra
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current wee
figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. On a discount basis.
5. Interest rates interpolated from data on certain commercial paper trades settled by T
Depository Trust Company. The trades represent sales of commercial paper by dealers or d
issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equiva
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 bid 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.-char
commercial banks. Prime is one of several base rates used by banks to price short-term b
loans.
9. The rate charged for discounts made and advances extended under the Federal Reserve's
http://www.federalreserve.gov/Releases/H 15/update/ 3/1 /A06
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 1, 2006 Page 3 of 4
credit discount window program, which became effective January 9, 2003. This rate replac
adjustment credit, which was discontinued after January 8, 2003. For further information
www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate report
for the Federal Reserve Bank of New York. Historical series for the rate on adjustment c
well as the rate on primary credit are available at www.federalreserve.gov/releases/hl5/
10. Yields on actively traded non -inflation -indexed issues adjusted to constant maturity
30-year Treasury constant maturity series was discontinued on February 18, 2002, and rei
on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasury publ
factor for adjusting the daily nominal 20-year constant maturity in order to estimate a
nominal rate. The historical adjustment factor can be found at
www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex_hi
Source: U.S. Treasury.
11. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturi
Source: U.S. Treasury. Additional information on both nominal and inflation -indexed yiel
found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html
12. Based on the unweighted average bid yields for all TIPS with remaining terms to matu
more than 10 years.
13. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap rates.
for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates
at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Page ISDA
ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited.
14. Moody's Aaa rates through December 6, 2001, are averages of Aaa utility and Aaa indu
rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only.
15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday
16. Contract interest rates on commitments for fixed-rate first mortgages. Source: FHLMC
---------------------------------------------------------------------------------
Note: Weekly and monthly figures on this release, as well as annual figures available on
Board's historical H.15 web site (see below), are averages of business days unless other
--------------------------------------------------------------------------------------
Current and historical H.15 data are available on the Federal Reserve Board's web site
(www.federalreserve.gov/). For information about individual copies or subscriptions, con
Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-728-5886
electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 202
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
from the daily yield curve for non -inflation -indexed Treasury securities. This curve, wh
the yield on a security to its time to maturity, is based on the closing market bid yiel
actively traded Treasury securities in the over-the-counter market. These market yields
calculated from composites of quotations obtained by the Federal Reserve Bank of New Yor
constant maturity yield values are read from the yield curve at fixed maturities, curren
and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a
maturity, for example, even if no outstanding security has exactly 10 years remaining to
Similarly, yields on inflation -indexed securities at "constant maturity" are interpolate
daily yield curve for Treasury inflation protected securities in the over-the-counter ma
inflation -indexed constant maturity yields are read from this yield curve at fixed matur
http://www.federalreserve.gov/Releases/H 15/update/ 3/ 1 /A06
FRB: H.15--Selected Interest Rates, Web -Only Daily Update --March 1, 2006 Page 4 of 4
currently 5, 7, 10, and 20 years.
Weeklv release dates and announcements I Historical data I About
Daily update Other formats: Screen reader I ASCII
Statistical releases
I-lome Economic research and data
:Accessibility I Contact Us
Last update: March 1, 2006
g
htt://www.federalreserve. ov/Releases/H15/update/ 3/l/A06
p
Phil Angelides, State Treasurer
Inside the State Treasurer's Office
Local AgencyInvestment Fund
PMIA Performance Report
Average
�?a ly
Quarter tc�
l lat A
Date ,
Yielda#e
Y%tdJ!qj.
da s
2/14/2006
4.04
3.97
176
2/16/2006
4.04
3.98
178
2/16/2006
4.05
3.98
177
2/17/2006
4.06
3.98
177
2/18/2006
4.06
3.98
177
2/19/2006
4.06
3.98
177
2/20/2006
4.06
3.98
177
2/21 /2006
4.06
3.98
174
2/22/2006
4.06
3.98
172
2/23/2006
4.07
3.99
170
2/24/2006
4.08
3.99
167
2/25/2006
4.08
3.99
167
2/26/20061
4.08
1 3.99
167
2127/20061
4.09
1 3.99
163
LAIF Performance Report
Quarter ending 12/31/2005
Apportionment Rate: 3.63%
Earnings Ratio: .00009940144551024
Fair Value Factor: .997562079
L.AIF WILL BE CLOSED MARCH 31
ESAR CHAVEZ DAB'
PMIA Average Monthly Effective Yields
January 2006 3.955%
December 2005 3.808%
November 2005 3.636%
Pooled Money Investment Account
Portfolio Composition
$60.4 Billion
01 /31 /06
Loans
A7 A40%
Corporate Bon
1.59%
Commercial Paper
15.28%
Time Depo
12.74%
Treasuries
8.51 %
Mortgages
%
CDs/BNs
23.27%
Agencies
24.96%
0
Bureau of the Public Debt : Recent Treasury Bill Auction Results Page 1 of 2
Recent Treasury Bill Auction Results
Price
Issue Maturity
Discount
Investment
per Per
CUSIP
Term
Date Date
Rate %
Rate %
12-DAY
03-03-2006 03-15-2006
4.445
4.513
99.851833
912795TSO
28-DAY
03-02-2006 03-30-2006
4.390
4.466
99.658556
912795WV9
91-DAY
03-02-2006 06-01-2006
4.510
4.625
98.859972
912795XE6
182-DAY
03-02-2006 08-31-2006
4.580
4.754
97.684556
912795XT3
28-DAY
02-23-2006 03-23-2006
4.350
4.425
99.661667
912795WU1
91-DAY
02-23-2006 05-25-2006
4.450
4.563
98.875139
912795XD8
182-DAY
02-23-2006 08-24-2006
4.545
4.716
97.702250
912795XS5
28-DAY
02-16-2006 03-16-2006
4.330
4.405
99.663222
912795WT4
91-DAY
02-16-2006 05-18-2006
4.440
4.553
98.877667
912795XCO
182-DAY
02-16-2006 08-17-2006
4.540
4.711
97.704778
912795XR7
28-DAY
02-09-2006 03-09-2006
4.230
4.303
99.671000
912795WS6
91-DAY
02-09-2006 05-11-2006
4.375
4.485
98.894097
912795XB2
182-DAY
02-09-2006 08-10-2006
4.500
4.669
97.725000
912795XQ9
28-DAY
02-02-2006 03-02-2006
4.290
4.364
99.666333
912795WR8
91-DAY
02-02-2006 05-04-2006
4.375
4.485
98.894097
912795XA4
182-DAY
02-02-2006 08-03-2006
4.435
4.600
97.757861
912795XP1
28-DAY
01-26-2006 02-23-2006
4.145
4.216
99.677611
912795 WQO
91-DAY
01-26-2006 04-27-2006
4.290
4.397
98.915583
912795WZO
182-DAY
01-26-2006 07-27-2006
4.340
4.499
97.805889
912795XN6
28-DAY
01-19-2006 02-16-2006
3.950
4.017
99.692778
912795 WP2
91-DAY
01-19-2006 04-20-2006
4.270
4.377
98.920639
912795 WY3
182-DAY
01-19-2006 07-20-2006
4.315
4.472
97.818528
912795XM8
28-DAY
01-12-2006 02-09-2006
4.070
4.140
99.683444
912795 WN7
91-DAY
01-12-2006 04-13-2006
4.150
4.252
98.950972
912795WX5
182-DAY
01-12-2006 07-13-2006
4.250
4.404
97.851389
912795XLO
28-DAY
01-05-2006 02-02-2006
3.965
4.033
99.691611
912795 WM9
91-DAY
01-05-2006 04-06-2006
4.070
4.169
98.971194
912795 WW7
182-DAY
01-05-2006 07-06-2006
4.265
4.420
97.843806
912795XK2
14-DAY
01-03-2006 01-17-2006
4.100
4.164
99.840556
912795TR2
28-DAY
12-29-2005 01-26-2006
3.470
3.528
99.730111
912795 WL 1
91-DAY
12-29-2005 03-30-2006
3.905
3.999
99.012903
912795WV9
182-DAY
12-29-2005 06-29-2006
4.200
4.351
97.876667
912795XJ5
28-DAY
12-22-2005 01-19-2006
3.495
3.553
99.728167
912795 WK3
91-DAY
12-22-2005 03-23-2006
3.895
3.988
99.015431
912795 WU 1
182-DAY
12-22-2005 06-22-2006
4.220
4.372
97.866556
912795XH9
28-DAY
12-15-2005 01-12-2006
3.570
3.630
99.722333
912795 WJ6
91-DAY
12-15-2005 03-16-2006
3.820
3.911
99.034389
912795 WT4
182-DAY
12-15-2005 06-15-2006
4.180
4.330
97.886778
912795XG1
P
. htt://wwwsublicdebt.treas.gov/AI/OFBills 3/1106
p
Bureau of the Public Debt : Recent Treasury Bill Auction Results Page 2 of 2
7-DAY 12-08-2005 12-15-2005 4.080 4.140 99.920667 912795WE7
28-DAY 12-08-2005 01-05-2006 3.750 3.813 99.708333 912795WHO
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 l Data Quality
Last Updated March 1, 2006 6:26:32 PM EST
8
http://wwws.publicdebt.treas.gov/AI/OFBills 3/1/2006
FRB:Commercial Paper Rates and Outstandings
Page 1 of 3
edenal Reserve Release
Commercial PaPPA
Release I about I Outstandings I Historical_ discount rates I Historical outstandings
Data as of February 28, 2006
Commercial Paper Rates and Outstandings
Derived from data supplied by The Depository Trust Company
Posted March 1, 2006
Discount rates
AA
AA
A2/P2
Term
financial
nonfinancial
nonfinancial
1-day 4.53 4.53 11 4.61
7-day 4.48 4.49 F-4.60
115-day 4.51 4.44 4.62
30-day 4.52 4.49 4.71
160-day 4.62 ND [-75
L9O-day 4.70 ND 4.84
Trade data insufficient to support calculation of the 60-day AA no
Yield curve
Money market hasi�+
otitis anci,tl
......... A2/P2
t 7 [' 5 30
nfinancial and 90-day AA nonfinancial rate(s) for February 28, 2006 .
Crays to Mrtwrity
60
Percent
4.9
4.7
4,
4:3
90
http://www.federalreserve.gov/Releases/CP/
3/1/2006
FRB:Commercial Paper Rates and Outstandings
Page 2 of 3
Discount rate spread
Basis Points
I-,It )
I M
80
60
40
20
0
1"M 1 2M3 2M4 2M5
Discount rate history
Thirty -day commercial paper Waily)
2M 1 2002 12M3 2M4 2(X)5
Outstandings
Weekly (Wednesday), seasonally adjusted
Percent
4
3
0
http://www.federalreserve.gov/Releases/CP/
10
3/1/2006
FRB:Commercial Paper Rates and Outstandings
Page 3 of 3
1570
1540
1510
148E }
1450
1420
1390
1360
13.30
1300
1270
1240
1210
1 180
1150
Billions of. dollars
Rillio ,,s of dollar's
2111)1 2t>ti2 2003 211t14 0
'250
210
nff
130
9
The daily commercial paper release will usually be available before 11:OOam EST. However, the Federal Reserve
makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve is
closed on a business day, yields for the previous business day will appear in the historical discount rates table.
This policy is subject to change at any time without notice.
Commercial paper outstanding
Commercial paper outstanding, miscellaneous categories
Volume Statistics 2005 :Q4
Release About I Outstandings Historical discount rates I Historical outstandings
Horne I Statistical releases
Accessibility) Contact Us
Last update: March 1, 2006
http://www.federalreserve.gov/Releases/CP/ 3/1'/1006
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12
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
March 8, 2006
Correspondence
& Written Material Item B
Pooled Money Investment Board Report for December 2005
BACKGROUND:
The Pooled Money Investment Board Report for December 2005 is included in the
agenda packet. This report is available on-line at www.treasurer.ca.gov.
RECOMMENDATION:
Receive & File
John M. Falconer, Finance Director
Phil Angelides
December 2005
STATE OF CALIFORNIA
STATE TREASURER'S OFFICE
POOLED MONEY INVESTMENT BOARD REPORT
December 2005
TABLE OF CONTENTS
SUMMARY................................................................. 01
SELECTED INVESTMENT DATA .................................... 02
PORTFOLIO COMPOSITION ........................................ 03
INVESTMENT TRANSACTIONS ..................................... 04
TIMEDEPOSITS........................................................ 17
BANK DEMAND DEPOSITS .......................................... 29
POOLED MONEY INVESTMENT BOARD DESIGNATION... 30
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF DECEMBER 2005 WITH DECEMBER 2004
(DOLLARS IN THOUSANDS)
DECEMBER 2005 DECEMBER 2004 CHANGE
Average Daily Portfolio $
54,545,590 $
51,766,737 $
+2,778,853
Accrued Earnings $
176,406 $
93,834 $
+82,572
Effective Yield
3.808
2.134
+1.674
Average Life -Month End (In Days)
192
210
-18
Total Security Transactions
Amount
$ 21,953,937
$
24,840,844
$
-2,886,907
Number
451
519
-68
Total Time Deposit Transactions
Amount
$ 3,148,500
$
2,735,000
+413,500
Number
146
135
+11
Average Workday Investment Activity
$ 1,195,354
$
1,198,950
$
-3,596
Prescribed Demand Account Balances
For Services
$ 323,120
$
533,868
$
-210,748
For Uncollected Funds
$ 145,807
$
173,050
$
-27,243
1
PHIL ANGELIDES
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
December 31, 2005
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
786,769
1.36
-0.62
Bonds
0
0.00
Notes
3,025,843
5.25
+0.83
Strips
0
0.00
Total Government
$
3,812,612
6.61
+0.21
Federal Agency Coupons
$
8,480,988
14.70
-1.04
Certificates of Deposit
11,780,132
20.43
-0.06
Bank Notes
1,349,990
2.34
+0.06
Bankers' Acceptances
0
0.00
0.00
Repurchases
0
0.00
0.00
Federal Agency Discount Notes
6,365,599
11.04
+0.59
Time Deposits
7,638,995
13.24
-0.58
GNMAs
258
0.00
0.00
Commercial Paper
9,066,713
15.72
+1.51
FHLMC/Remics
766,348
1.33
-0.10
Corporate Bonds
938,427
1.63
-0.13
AB 55 Loans
7,474,758
12.96
-0.46
GF Loans
0
0.00
0.00
Reversed Repurchases
0
0.00
0.00
Total (All Types)
$
57,674,820
100.00
INVESTMENT ACTIVITY
Pooled Money
Other
Time Deposits
Totals
PMIA Monthly Average Effective Yield
Year to Date Yield Last Day of Month
DECEMBER 2005
NUMBER
AMOUNT
451
$ 21,953,937
89
3,495,993
146
3,148,500
686
$ 28,598,430
3.808
3.413
2
NOVEMBER 2005
NUMBER AMOUNT
499 $ 23,634,276
52 1,014,743
143 3,478,300
694 $ 28,127,319
3.636
3.330
Pooled Money Investment Account
Portfolio Composition
$57.7 Billion
Corporate B
1.63%
Commercial Paper
15.72%
Time De
13.2�
12/31/05
Treasuries
Loans 6.61 % Mortgages
w n nnni
3
CDs/BNs
22.77%
Agencies
25.74%
12/01/05 REDEMPTIONS
CD
WA MU, FA
3.630%
12/01/05
3.630
$50,000
149
$751,208.33
3.680
CD
WA MU, FA
3.630%
12/01/05
3.630
50,000
149
751,208.33
3.680
CD
WA MU, FA
3.630%
12/01/05
3.630
50,000
149
751,208.33
3.680
CD
WA MU, FA
3.630%
12/01/05
3.630
50,000
149
751,208.33
3.680
CD
BNP PARIBAS
3.585%
12/01/05
3.585
50,000
153
761,812.50
3.635
CD
BNP PARIBAS
3.585%
12/01/05
3.585
50,000
153
761,812.50
3.635
CD
BNP PARIBAS
3.585%
12/01/05
3.585
50,000
153
761,812.50
3.635
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
GECC
12/01/05
4.000
50,000
2
11,111.11
4.056
CP
CITIGROUP
12/01/05
4.000
50,000
9
50,000.00
4.060
CP
CITIGROUP
12/01/05
4.000
50,000
9
50,000.00
4.060
CP
GECC
12/01/05
4.000
50,000
15
83,333.33
4.062
CP
GECC
12/01/05
4.000
50,000
15
83,333.33
4.062
CP
GECC
12/01/05
4.000
50,000
15
83,333.33
4.062
CP
GECC
12/01/05
4.000
50,000
15
83,333.33
4.062
CP
GECC
12/01/05
4.000
50,000
22
122,222.22
4.065
CP
GECC
12/01/05
4.000
50,000
22
122,222.22
4.065
CP
GECC
12/01/05
4.000
50,000
22
122,222.22
4.065
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
DISC NOTES
FHLMC
12/01/05
3.440
50,000
153
731,000.00
3.540
TREAS
BILLS
12/01/05
3.200
50,000
148
657,777.78
3.288
TREAS
BILLS
12/01/05
3.200
50,000
148
657,777.78
3.288
TREAS
BILLS
12/01/05
3.200
50,000
148
657,777.78
3.288
TREAS
BILLS
12/01/05
3.200
50,000
148
657,777.78
3.288
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.50
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.50
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.50
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.50
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.205
50,000
148
658,805.56
3.293
TREAS
BILLS
12/01/05
3.200
50,000
153
680,000.00
3.289
TREAS
BILLS
12/01/05
3.200
50,000
153
680,000.00
3.289
TREAS
BILLS
12/01/05
3.200
50,000
153
680,000.00
3.289
TREAS
BILLS
12/01/05
3.200
50,000
153
680,000.00
3.289
4
12/01/05 PURCHASES
CP
GECC
12/02/05
4.010
50,000
CID
GECC
12/02/05
4.010
50,000
CID
GECC
12/02/05
4.010
50,000
CID
GECC
12/02/05
4.010
50,000
CID
GECC
12/02/05
4.010
50,000
12/02/05
REDEMPTIONS
CID
GECC
12/02/05
4.010
50,000
1
5,569.44
4.066
CP
GECC
12/02/05
4.010
50,000
1
5,569.44
4.066
CID
GECC
12/02/05
4.010
50,000
1
5,569.44
4.066
CP
GECC
12/02/05
4:010
50,000
1
5,569.44
4.066
CID
GECC
12/02/05
4.010
50,000
1
5,569.44
4.066
CP
W/F
12/02/05
4.000
50,000
15
83,333.33
4.062
CID
W/F
12/02/05
4.000
50,000
15
83,333.33
4.062
CID
W/F
12/02/05
4.000
50,000
15
83,333.33
4.062
CID
W/F
12/02/05
4.000
50,000
15
83,333.33
4.062
CID
SARA LEE
12/02/05
4.060
31,000
17
59,433.89
4.124
CID
CITIGROUP
12/02/05
3.770
50,000
94
492,194.44
3.860
CID
CITIGROUP
12/02/05
3.770
50,000
94
492,194.44
3.860
12/02/05
PURCHASES
CID
GECC
12/05/05
4.000
50,000
CID
GECC
12/05/05
4.000
50,000
12/05/05
REDEMPTIONS
CID
GECC
12/05/05
4.000
50,000
3
16,666.67
4.057
CID
GECC
12/05/05
4.000
50,000
3
16,666.67
4.057
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
GECC
12/05/05
4.000
50,000
18
100,000.00
4.064
CID
DISNEY
12/05/05
4.090
39,100
20
88,843.89
4.156
CP
SARA LEE
12/05/05
3.930
25,000
59
161,020.83
4.010
12/05/05
PURCHASES
CID
AMER EXP
12/06/05
4.020
50,000
CID
AMER EXP
12/06/05
4.020
50,000
CID
NCAT
12/06/05
4.030
50,000
CID
NCAT
12/06/05
4.030
50,000
12/06/05
REDEMPTIONS
CID
AMER EXP
12/06/05
4.020
50,000
1
5,583.33
4.076
CID
AMER EXP
12/06/05
4.020
50,000
1
5,583.33
4.076
5
12/06/05 REDEMPTIONS (continued)
CID
NCAT
12/06/05
4.030
50,000
1
5,597.22
4.086
CID
NCAT
12/06/05
4.030
50,000
1
5,597.22
4.086
CID
COUNTRY
12/06/05
4.050
50,000
7
39,375.00
4.109
CID
COUNTRY
12/06/05
4.050
50,000
7
39,375.00
4.109
CID
CITIGROUP
12/06/05
4.000
50,000
14
77,777.78
4.062
CID
CITIGROUP
12/06/05
4.000
50,000
14
77,777.78
4.062
CID
CITIGROUP
12/06/05
3.770
15,000
98
153,941.67
3.862
CID
CITIGROUP
12/06/05
3.770
50,000
98
513,138.89
3.862
CID
CITIGROUP
12/06/05
3.770
50,000
98
513,138.89
3.862
12/06/05 PURCHASES
AGENCY
FHLMC
3.750%
11/15/06
4.702
25,000
BN
WORLD
4.380%
03/01/06
4.390
50,000
BN
WORLD
4.380%
03/01/06
4.390
50,000
BN
WORLD
4.380%
03/01/06
4.390
50,000
BN
WORLD
4.380%
03/01/06
4.390
50,000
CD
ANZ
4.540%
05/26/06
4.540
50,000
CD
ANZ
4.540%
05/26/06
4.540
50,000
CD
BNP PARIBAS
4.540%
05/26/06
4.545
50,000
CD
BNP PARIBAS
4.540%
05/26/06
4.545
50,000
CID
BEAR
04/10/06
4.400
25,000
CID
BEAR
04/10/06
4.400
50,000
CID
BEAR
04/10/06
4.400
50,000
CID
BEAR
04/10/06
4.400
50,000
CID
BEAR
04/10/06
4.400
50,000
CID
NCAT
05/02/06
4.410
50,000
CID
NCAT
05/02/06
4.410
50,000
12/07/05 NO REDEMPTIONS
12/07/05 PURCHASES
CID
GECC
12/08/05
4.010
50,000
CID
GECC
12/08/05
4.010
50,000
CID
GECC
12/08/05
4.010
50,000
CID
GECC
12/08/05
4.010
50,000
CID
GECC
12/08/05
4.010
50,000
12/08/05 REDEMPTIONS
CD
W/F
4.020%
12/08/05
CD
W/F
4.020%
12/08/05
CD
W/F
4.020%
12/08/05
CD
W/F
4.020%
12/08/05
CD
W/F
4.020%
12/08/05
CID
GECC
12/08/05
CID
GECC
12/08/05
CID
GECC
12/08/05
CID
GECC
12/08/05
6
4.020
50,000
23
128,416.67
4.076
4.020
50,000
23
128,416.67
4.076
4.020
50,000
23
128,416.67
4.076
4.020
50,000
23
128,416.67
4.076
4.020
50,000
23
128,416.67
4.076
4.010
50,000
1
5,569.44
4.066
4.010
50,000
1
5,569.44
4.066
4.010
50,000
1
5,569.44
4.066
4.010
50,000
1
5,569.44
4.066
12/08/05 REDEMPTIONS (continued)
CP
GECC
CP
COUNTRY
CP
COUNTRY
CP
COUNTRY
CP
COUNTRY
CP
COUNTRY
12/08/05 PURCHASES
12/08/05
4.010
50,000
1
5,569.44
4.066
12/08/05
4.060
5,000
23
12,969.44
4.127
12/08/05
4.060
50,000
23
129,694.44
4.127
12/08/05
4.060
50,000
23
129,694.44
4.127
12/08/05
4.060
50,000
23
129,694.44
4.127
12/08/05
4.060
50,000
23
129,694.44
4.127
CP
COUNTRY
12/09/05
4.100
50,000
CP
COUNTRY
12/09/05
4.100
50,000
CP
COUNTRY
12/09/05
4.100
50,000
CP
COUNTRY
12/09/05
4.100
50,000
CP
COUNTRY
12/09/05
4.100
50,000
12/09/05 REDEMPTIONS
CP
COUNTRY
12/09/05
4.100
50,000
1
5,694.44
4.157
CP
COUNTRY
12/09/05
4.100
50,000
1
5,694.44
4.157
CP
COUNTRY
12/09/05
4.100
50,000
1
5,694.44
4.157
CP
COUNTRY
12/09/05
4.100
50,000
1
5,694.44
4.157
CP
COUNTRY
12/09/05
4.100
50,000
1
5,694.44
4.157
CP
CITIGROUP
12/09/05
4.000
50,000
17
94,444.44
4.063
CP
CITIGROUP
12/09/05
4.000
50,000
17
94,444.44
4.063
CP
DISNEY
12/09/05
4.080
25,000
24
68,000.00
4.148
12/09/05 PURCHASES
BN
B/A
4.460% 04/11/06
4.460
50,000
BN
B/A
4.460% 04/11/06
4.460
50,000
CP
FCAR
12/12/05
4.180
50,000
CP
FCAR
12/12/05
4.180
50,000
CP
FCAR
12/12/05
4.180
50,000
CP
CAFCO
03/06/06
4.360
50,000
CP
CAFCO
03/06/06
4.360
50,000
CP
CRC
03/08/06
4.360
50,000
CP
CRC
03/08/06
4.360
50,000
CP
BEAR
04/11/06
4.400
50,000
CP
BEAR
04/11/06
4.400
50,000
12/12/05 REDEMPTIONS
CP
FCAR
12/12/05
4.180
CP
FCAR
12/12/05
4.180
CP
FCAR
12/12/05
4.180
CP
COUNTRY
12/12/05
4.050
CP
SARA LEE
12/12/05
4.100
CP
FCAR
12/12/05
3.600
CP
FCAR
12/12/05
3.600
CP
FCAR
12/12/05
3.600
7
50,000
3
17,416.67
4.240
50,000
3
17,416.67
4.240
50,000
3
17,416.67
4.240
50,000
33
185,625.00
4.122
50,000
33
187,916.67
4.173
50,000
160
800,000.00
3.709
50,000
160
800,000.00
3.709
50,000
160
800,000.00
3.709
12/12/05 REDEMPTIONS (continued)
CID
FCAR
12/12/05
3.600
50,000
160
800,000.00 3.709
DISC NOTES
FHLMC
12/12/05
3.530
50,000
159
779,541.67 3.636
DISC NOTES
FHLMC
12/12/05
3.530
50,000
159
779,541.67 3.636
12/12/05
PURCHASES
CD
WA MU, FA
4.520%
05/12/06
4.520
25,000
CD
WA MU, FA
4.520%
05/12/06
4.520
50,000
CD
WA MU, FA
4.520%
05/12/06
4.520
50,000
CID
FCAR
01/10/06
4.300
50,000
CID
FCAR
01/10/06
4.300
50,000
CID
CRC
02/16/06
4.340
50,000
CID
CRC
02/16/06
4.340
50,000
CID
CRC
02/16/06
4.340
50,000
CID
CRC
02/16/06
4.340
50,000
12/13/05
NO REDEMPTIONS
12/13/05
PURCHASES
CID
COUNTRY
12/14/05
4.300
50,000
CID
COUNTRY
12/14/05
4.300
50,000
12/14/05
REDEMPTIONS
CID
COUNTRY
12/14/05
4.300
50,000
1
5,972.22 4.360
CID
COUNTRY
12/14/05
4.300
50,000
1
5,972.22 4.360
12/14/05
PURCHASES
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
TREAS
BILLS
05/04/06
4.065
50,000
12/15/05
REDEMPTIONS
AGENCY
FHLB
2.500%
12/15/05
1.500
50,000
911
1,896,083.33 1.487
AGENCY
FHLB
2.500%
12/15/05
1.500
50,000
911
1,896,083.33 1.487
AGENCY
FHLB
2.500%
12/15/05
1.500
50,000
911
1,896,083.33 1.487
0
12/15/05 PURCHASES
CD
LLOYDS
4.540%
05/26/00
4.530
501000
CD
LLOYDS
4.540%
05/26/06
4.530
50,000
CD
NOVA SCOT
4.530%
05/26/06
4.530
50,000
CD
NOVA SCOT
4.530%
05/26/06
4.530
50,000
CD
NOVA SCOT
4.530%
05/26/06
4.530
50,000
CD
NOVA SCOT
4.530%
05/26/06
4.530
50,000
CD
SVENSKA
4.550%
05/26/06
4.535
50,000
CD
SVENSKA
4.550%
05/26/06
4.535
50,000
CD
SOC GEN
4.540%
05/26/06
4.540
50,000
CD
SOC GEN
4.540%
05/26/06
4.540
50,000
CD
CIBC
4.550%
05/26/06
4.550
50,000
CD
CIBC
4.550%
05/26/06
4.550
50,000
CID
GECC
12/16/05
4.280
50,000
CID
GECC
12/16/05
4.280
50,000
CID
GECC
12/16/05
4.280
50,000
CID
GECC
12/16/05
4.280
50,000
CID
COUNTRY
12/16/05
4.330
45,000
CID
COUNTRY
12/16/05
4.330
50,000
CID
COUNTRY
12/16/05
4.330
50,000
CID
COUNTRY
12/16/05
4.330
50,000
CID
COUNTRY
12/16/05
4.330
50,000
CID
GECC
05/26/06
4.440
10,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
CID
GECC
05/26/06
4.440
50,000
DISC NOTES
FHLMC
05/26/06
4.380
50,000
DISC NOTES
FHLMC
05/26/06
4.380
50,000
DISC NOTES
FHLMC
05/26/06
4.380
50,000
DISC NOTES
FHLMC
05/26/06
4.380
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
TREAS
NOTES
2.750%
06/30/06
4.291
50,000
12/16/05 REDEMPTIONS
CID GECC 12/16/05 4.280 50,000 1 5,944.44 4.340
CID GECC 12/16/05 4.280 50,000 1 5,944.44 4.340
9
12/16/05 REDEMPTIONS (continued)
CP
GECC
12/16/05
4.280
50,000
1
5,944.44
4.340
CP
GECC
12/16/05
4.280
50,000
1
5,944.44
4.340
CP
COUNTRY
12/16/05
4.330
45,000
1
5,412.50
4.391
CP
COUNTRY
12/16/05
4.330
50,000
1
6,013.89
4.391
CP
COUNTRY
12/16/05
4.330
50,000
1
6,013.89
4.391
CP
COUNTRY
12/16/05
4.330
50,000
1
6,013.89
4.391
CP
COUNTRY
12/16/05
4.330
50,000
1
6,013.89
4.391
12/16/05 PURCHASES
CP
GECC
12/19/05
4.230
50,000
CP
GECC
12/19/05
4.230
50,000
CP
GECC
12/19/05
4.230
50,000
CP
GECC
12/19/05
4.230
50,000
CP
GECC
12/19/05
4.230
50,000
CP
GECC
12/19/05
4.230
50,000
CP
BEAR
12/20/05
4.260
50,000
CP
BEAR
12/20/05
4.260
50,000
CP
CITIGROUP
05/02/06
4.420
50,000
CP
CITIGROUP
05/02/06
4.420
50,000
CP
CITIGROUP
05/26/06
4.450
50,000
CP
CITIGROUP
05/26/06
4.450
50,000
CP
CITIGROUP
05/26/06
4.450
50,000
CP
CITIGROUP
05/26/06
4.450
50,000
CP
NCAT
05/26/06
4.480
50,000
CP
NCAT
05/26/06
4.480
50,000
DISC NOTES
FHLMC
05/26/06
4.370
50,000
DISC NOTES
FHLMC
05/26/06
4.370
50,000
DISC NOTES
FHLMC
05/26/06
4.370
50,000
DISC NOTES
FHLMC
05/26/06
4.370
50,000
12/19/05 REDEMPTIONS
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
CP
GECC
12/19/05
4.230
50,000
3
17,625.00
4.290
MTN
COUNTRY
3.500% 12/19/05
3.228
2,500
315
70,383.33
3.255
MTN
COUNTRY
3.500% 12/19/05
3.010
8,000
390
258,617.55
3.010
MTN
COUNTRY
3.500% 12/19/05
3.010
17,000
390
549,562.28
3.010
12/19/05 PURCHASES
CD
WA MU, FA
CD
WA MU, FA
CP
GECC
CP
GECC
CP
GECC
4.540% 05/26/06
4.540
50,000
4.540% 05/26/06
4.540
50,000
12/20/05
4.250
50,000
12/20/05
4.250
50,000
12/20/05
4.250
50,000
10
12/19/05 PURCHASES (continued)
CP
MERRILL
12/27/05
4.250
50,000
CP
MERRILL
12/27/05
4.250
50,000
CP
CITIGROUP
12/29/05
4.270
50,000
CP
CITIGROUP
12/29/05
4.270
50,000
CP
CITIGROUP
12/29/05
4.270
50,000
CP
CITIGROUP
12/29/05
4.270
50,000
DISC NOTES
FHLMC
04/26/06
4.330
50,000
DISC NOTES
FHLMC
04/26/06
4.330
50,000
DISC NOTES
FHLMC
05/26/06
4.360
50,000
DISC NOTES
FHLMC
05/26/06
4.360
50,000
12/20/05 REDEMPTIONS
CP
GECC
12/20/05
4.250
50,000
1
5,902.78
4.310
CP
GECC
12/20/05
4.250
50,000
1
5,902.78
4.310
CP
GECC
12/20/05
4.250
50,000
1
5,902.78
4.310
CP
BEAR
12/20/05
4.260
50,000
4
23,666.67
4.321
CP
BEAR
12/20/05
4.260
50,000
4
23,666.67
4.321
12/20/05 PURCHASES
CP
CITIGROUP
12/27/05
4.270
50,000
CP
NISSAN
01/03/06
4.410
23,500
CP
CITIGROUP
01/03/06
4.300
27,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
CP
CITIGROUP
01/03/06
4.300
50,000
12/21/05 NO REDEMPTIONS
12/21/05 PURCHASES
CD
SOC GEN
4.540%
05/22/06
4.540
50,000
CD
SOC GEN
4.540%
05/22/06
4.540
50,000
CD
CIBC
4.550%
05/22/06
4.550
50,000
CD
CIBC
4.550%
05/22/06
4.550
50,000
CD
WA MU, FA
4.560%
05/22/06
4.560
50,000
CD
WA MU, FA
4.560%
05/22/06
4.560
50,000
CD
NOVA SCOT
4.540%
05/26/06
4.540
50,000
CD
NOVA SCOT
4.540%
05/26/06
4.540
50,000
CD
NOVA SCOT
4.540%
05/26/06
4.540
50,000
CD
TORONTO
4.545%
05/26/06
4.535
50,000
CD
TORONTO
4.545%
05/26/06
4.535
50,000
CD
TORONTO
4.545%
05/26/06
4.535
50,000
CD
TORONTO
4.545%
05/26/06
4.535
50,000
11
12/21/05 PURCHASES (continued)
CID
CITIGROUP
01/12/06
4.290
50,000
CID
CITIGROUP
01/12/06
4.290
50,000
CID
CITIGROUP
01/12/06
4.290
50,000
CID
CITIGROUP
01/12/06
4.290
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
DISC NOTES
FHLMC
05/08/06
4.355
50,000
12/22/05 NO REDEMPTIONS
12/22/05 PURCHASES
CD
W/F
4.310% 01/18/06
4.310
50,000
CD
W/F
4.310% 01/18/06
4.310
50,000
CD
W/F
4.310% 01/18/06
4.310
50,000
CID
NCAT
01/13/06
4.310
50,000
CID
CRC
02/16/06
4.340
50,000
CID
CRC
02/16/06
4.340
50,000
CID
CRC
02/16/06
4.340
50,000
CID
COUNTRY
03/06/06
4.400
22,100
CID
CAFCO
03/08/06
4.380
50,000
CID
CAFCO
03/08/06
4.380
50,000
CID
CAFCO
03/08/06
4.380
50,000
CID
CAFCO
03/27/06
4.400
30,000
DISC NOTES
FHLMC
05/17/06
4.360
50,000
DISC NOTES
FHLMC
05/17/06
4.360
50,000
DISC NOTES
FHLMC
05/17/06
4.360
50,000
DISC NOTES
FHLMC
05/17/06
4.360
50,000
12/23/05 REDEMPTIONS
CID
GECC
12/23/05
3.570
50,000
168
833,000.00
3.681
CID
GECC
12/23/05
3.570
50,000
168
833,000.00
3.681
CID
GECC
12/23/05
3.570
50,000
168
833,000.00
3.681
CID
GECC
12/23/05
3.570
50,000
168
833,000.00
3.681
CID
GECC
12/23/05
3.570
50,000
168
833,000.00
3.681
CID
TOYOTA
12/23/05
3.550
50,000
170
838,194.44
3.661
CID
TOYOTA
12/23/05
3.550
50,000
170
838,194.44
3.661
12/23/05 NO PURCHASES
12/27/05 REDEMPTIONS
CD ANZ 3.700% 12/27/05 3.700 25,000 166 426,527.78 3.751
12
12/27/05 REDEMPTIONS (continued)
CD
ANZ
3.700% 12/27/05
3.700
50,000
166
853,055.56
3.751
CID
CITIGROUP
12/27/05
4.270
50,000
7
41,513.89
4.333
CID
MERRILL
12/27/05
4.250
50,000
8
47,222.22
4.313
CID
MERRILL
12/27/05
4.250
50,000
8
47,222.22
4.313
CID
B/A
12/27/05
3.810
50,000
119
629,708.33
3.912
CID
B/A
12/27/05
3.810
50,000
119
629,708.33
3.912
DISC NOTES
FHLMC
12/27/05
3.520
50,000
174
850,666.67
3.631
DISC NOTES
FHLMC
12/27/05
3.520
50,000
174
850,666.67
3.631
12/27/05 PURCHASES
CD
W/F
4.330% 01/13/06
4.330
50,000
CD
W/F
4.330% 01/13/06
4.330
50,000
CID
COUNTRY
01/10/06
4.360
50,000
CID
COUNTRY
01/10/06
4.360
50,000
CID
CITIGROUP
03/01/06
4.370
50,000
CID
CITIGROUP
03/01/06
4.370
50,000
CID
TOYOTA
03/02/06
4.340
50,000
CID
TOYOTA
03/02/06
4.340
50,000
CID
TOYOTA
03/02/06
4.340
50,000
CID
CITIGROUP
03/03/06
4.370
50,000
CID
GECC
04/03/06
4.400
50,000
CID
GECC
04/03/06
4.400
50,000
12/28/05 REDEMPTIONS
BN
B/A
3.660%
12/28/05
3.660
50,000
170
864,166.67
3.711
BN
B/A
3.660%
12/28/05
3.660
50,000
170
864,166.67
3.711
BN
B/A
3.660%
12/28/05
3.660
50,000
170
864,166.67
3.711
BN
B/A
3.660%
12/28/05
3.660
50,000
170
864,166.67
3.711
CD
TORONTO
3.655%
12/28/05
3.640
50,000
175
884,785.62
3.691
CD
TORONTO
3.655%
12/28/05
3.640
50,000
175
884,785.62
3.691
CD
ABN AMRO
3.645%
12/28/05
3.645
50,000
176
891,000.00
3.696
CD
ABN AMRO
3.645%
12/28/05
3.645
50,000
176
891,000.00
3.696
CD
CIBC
3.650%
12/28/05
3.650
50,000
176
892,222.22
3.701
CD
CIBC
3.650%
12/28/05
3.650
50,000
176
892,222.22
3.701
CD
CIBC
3.650%
12/28/05
3.650
50,000
176
892,222.22
3.701
CD
CIBC
3.650%
12/28/05
3.650
50,000
176
892,222.22
3.701
CD
BNP PARIBAS
3.665%
12/28/05
3.665
50,000
176
895,888.89
3.716
CD
BNP PARIBAS
3.665%
12/28/05
3.665
50,000
176
895,888.89
3.716
CD
CS/1ST BOSTON
3.665%
12/28/05
3.650
50,000
176
892,286.51
3.701
CD
CS/1 ST BOSTON
3.665%
12/28/05
3.650
50,000
176
892,286.51
3.701
CD
CS/1 ST BOSTON
3.665%
12/28/05
3.650
50,000
176
892,286.51
3.701
CD
CS/1ST BOSTON
3.665%
12/28/05
3.650
50,000
176
892,286.51
3.701
CD
US BANK
3.690%
12/28/05
3.690
50,000
176
902,000.00
3.741
CD
US BANK
3.690%
12/28/05
3.690
50,000
176
902,000.00
3.741
CD
US BANK
3.690%
12/28/05
3.690
50,000
176
902,000.00
3.741
CD
US BANK
3.690%
12/28/05
3.690
50,000
176
902,000.00
3.741
CD
RABO
3.615%
12/28/05
3.615
50,000
180
903,750.00
3.665
CD
RABO
3.615%
12/28/05
3.615
50,000
180
903,750.00
3.665
13
12/28/05 REDEMPTIONS (continued)
DISC NOTES FHLMC 12/28/05 3.550 50,000 167 823,402.78 3.660
DISC NOTES FHLMC 12/28/05 3.550 50,000 167 823,402.78 3.660
12/28/05 PURCHASES
CD
CALYON
4.435%
03/30/06
4.425
50,000
CD
CALYON
4.435%
03/30/06
4.425
50,000
CD
US BANK
4.430%
04/04/06
4.430
50,000
CD
US BANK
4.430%
04/04/06
4.430
50,000
CP
GECC
12/29/05
4.270
50,000
CP
GECC
12/29/05
4.270
50,000
CP
GECC
12/29/05
4.270
50,000
CP
GECC
12/29/05
4.270
50,000
CP
GECC
12/29/05
4.270
50,000
CP
GECC
12/29/05
4.270
50,000
CP
BEAR
02/06/06
4.310
50,000
CP
BEAR
02/06/06
4.310
50,000
12/29/05 REDEMPTIONS
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
GECC
12/29/05
4.270
50,000
1
5,930.56
4.330
CP
CITIGROUP
12/29/05
4.270
50,000
10
59,305.56
4.334
CP
CITIGROUP
12/29/05
4.270
50,000
10
59,305.56
4.334
CP
CITIGROUP
12/29/05
4.270
50,000
10
59,305.56
4.334
CP
CITIGROUP
12/29/05
4.270
50,000
10
59,305.56
4.334
12/29/05 PURCHASES
CD
W/F
4.380% 02/28/06
4.380
50,000
CD
W/F
4.380% 02/28/06
4.380
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
BEAR
01/03/06
4.420
50,000
CP
CITIGROUP
01/27/06
4.270
50,000
CP
CITIGROUP
01/27/06
4.270
50,000
CP
CITIGROUP
01/27/06
4.270
50,000
CP
CITIGROUP
01/27/06
4.270
50,000
CP
GECC
02/01/06
4.270
50,000
CP
GECC
02/01/06
4.270
50,000
CP
GECC
02/01/06
4.270
50,000
CP
GECC
02/01/06
4.270
50,000
14
12/30/05 REDEMPTIONS
CD
CALYON
3.670%
12/30/05
3.670
50,000
178
907,305.56
3.721
CD
CALYON
3.670%
12/30/05
3.670
50,000
178
907,305.56
3.721
CD
CALYON
3.670%
12/30/05
3.670
50,000
178
907,305.56
3.721
CD
CALYON
3.670%
12/30/05
3.670
50,000
178
907,305.56
3.721
12/30/05 PURCHASES
CD
W/F
4.250%
01/18/06
4.250
50,000
CD
W/F
4.250%
01/18/06
4.250
50,000
CD
US BANK
4.290%
01/31/06
4.290
50,000
CD
US BANK
4.290%
01/31/06
4.290
50,000
CP
LEHMAN
01/03/06
4.050
50,000
CP
LEHMAN
01/03/06
4.050
50,000
CP
LEHMAN
01/03/06
4.050
50,000
CP
LEHMAN
01/03/06
4.050
50,000
15
a/ The abbreviations indicate the type of security purchased or sold;
i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes
and Participation Certificates: Federal National Mortgage Association
(FNMA), Farmers Home Administration Notes (FHA), Student Loan
Marketing Association (SLMA), Small Business Association (SBA),
Negotiable Certificates of Deposit (CD), Negotiable Certificates of
Deposit Floating Rate (CD FR), Export Import Notes (EXIM),
Bankers Acceptances (BA), Commercial Paper (CP), Government
National Mortgage Association (GNMA), Federal Home Loan Bank
Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan
Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC),
Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount
Notes (FFC), Corporate Securities (CB), US Ship Financing Bonds
(TITLE XI'S), International Bank of Redevelopment (IBRD), Tennessee
Valley Authority (TVA), Medium Term Notes (MTN), Real Estate
Mortgage Investment Conduit (REMIC).
b/ Purchase or sold yield based on 360 day calculation for discount
obligations and Repurchase Agreements.
C/ Repurchase Agreement.
d/ Par amount of securities purchased, sold or redeemed.
e/ Securities were purchased and sold as of the same date.
f/ Repurchase Agreement against Reverse Repurchase Agreement.
g/ Outright purchase against Reverse Repurchase Agreement.
h/ Security "SWAP" transactions.
iz Buy back agreement.
RRS Reverse Repurchase Agreement.
RRP Termination of Reverse Repurchase Agreement.
16
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
ALAMO
Diablo Valley Bank
ALHAMBRA
Omni Bank, NA
Omni Bank, NA
Omni Bank, NA
Omni Bank, NA
Omni Bank, NA
The Bank of East Asia (USA), NA
The Bank of East Asia (USA), NA
The Bank of East Asia (USA), NA
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 Bank of Beverly Hills, FSB
CAMARILLO
First California Bank
First California Bank
First California Bank
CAMERON PARK
Western Sierra National Bank
Western Sierra National Bank
10/07/05 3.670
4,500,000.00 01/06/06
10/07/05
3.660
4,000,000.00
01/06/06
11/10/05
4.010
2,000,000.00
02/09/06
11/18/05
4.040
4,000,000.00
02/17/06
12/01/05
4.000
4,000,000.00
03/02/06
12/09/05
4.090
6,000,000.00
03/10/06
10/13/05
3.720
3,095,000.00
01/12/06
08/11 /05
3.860
3,000,000.00
02/09/06
08/17/05
3.890
6,000,000.00
02/16/06
07/14/05
3.510
5,000,000.00
01/12/06
08/10/05
3.860
5,000,000.00
02/08/06
09/08/05
3.700
5,000,000.00
03/09/06
10/12/05
4.040
5,000,000.00
04/12/06
11/16/05
4.380
5,000,000.00
05/17/06
12/09/05
4.370
5,000,000.00
06/09/06
08/03/05 3.780 4,000,000.00 02/01 /06
09/01/05
3.840
10,000,000.00
03/02/06
11/03/05
4.310
10,000,000.00
05/04/06
11/30/05
4.340
10,000,000.00
06/01/06
12/14/05
4.320
10,000,000.00
06/14/06
07/27/05 3.720 6,000,000.00 01/25/06
11/16/05 4.050 6,000,000.00 02/15/06
12/02/05 4.370 6,000,000.00 06/02/06
07/13/05 3.480 7,000,000.00 01/11/06
10/05/05 3.930 8,000,000.00 04/05/06
17
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
CARLSBAD
Southwest Community Bank
Southwest Community Bank
CHATSWORTH
Premier America Credit Union
Premier America Credit Union
Premier America Credit Union
CHICO
Tri Counties Bank
CITY OF INDUSTRY
EverTrust Bank
EverTrust Bank
EverTrust Bank
CONCORD
Cal State 9 Credit Union
DUBLIN
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
Operating Engineers Local # 3 FCU
EL CENTRO
Rabobank
Rabobank
Rabobank
Rabobank
Rabobank
ELSEGUNDO
First Coastal Bank, NA
First Coastal Bank, NA
First Coastal Bank, NA
First Coastal Bank, NA
11 /30/05 4.000
12/08/05 4.070
10/06/05 3.730
11 /04/05 3.990
12/09/05 4.100
5,000,000.00 03/01 /06
5,000,000.00 03/09/06
20,000,000.00 01/05/06
20,000,000.00 02/03/06
20,000,000.00 03/10/06
12/15/05
3.990
20,000,000.00
03/16/06
10/27/05
3.960
6,000,000.00
01/26/06
11/02/05
3.950
5,000,000.00
02/01/06
12/09/05
4.070
6,000,000.00
03/10/06
08/24/05 3.880
08/11/05 3.840
10/05/05 3.930
12/09/05 4.350
07/08/05
10/ 14/05
10/21 /05
11 /04/05
12/01 /05
3.490
3.800
3.880
3.980
4.000
10/20/05
3.910
11 /04/05
3.990
11 /17/05
4.050
09/01 /05
3.860
18
10,000,000.00 02/23/06
5,000,000.00 02/09/06
5,000,000.00 04/05/06
10,000,000.00 06/09/06
20,000,000.00 01/06/06
47,500,000.00 01/13/06
32,500,000.00 01/20/06
25,000,000.00 02/03/06
25,000,000.00 03/02/06
2,000,000.00 01/19/06
3,000,000.00 02/03/06
2,000,000.00 02/16/06
2,000,000.00 03/02/06
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
EL SEGUNDO (continued
First Coastal Bank, NA
12/16/05
3.970
5,000,000.00
03/17/06
Xerox Federal Credit Union
09/14/05
3.810
7,000,000.00
03/15/06
Xerox Federal Credit Union
10/17/05
4.170
10,000,000.00
04/19/06
Xerox Federal Credit Union
11/18/05
4.390
20,000,000.00
05/19/06
Xerox Federal Credit Union
12/02/05
4.380
20,000,000.00
06/02/06
FAIRFIELD
WestAmerica Bank
10/06/05
3.720
60,000,000.00
01/05/06
WestAmerica Bank
10/14/05
3.800
65,000,000.00
01/13/06
WestAmerica Bank
10/19/05
3.850
15,000,000.00
01/19/06
WestAmerica Bank
10/21/05
3.850
25,000,000.00
01/19/06
WestAmerica Bank
10/28/05
3.950
25,000,000.00
01/27/06
WestAmerica Bank
11/09/05
3.990
5,000,000.00
02/08/06
WestAmerica Bank
11/16/05
4.040
75,000,000.00
02/15/06
FRESNO
United Security Bank
10/19/05
4.170
40,000,000.00
04/19/06
FULLERTON
Fullerton Community Bank, FSB
07/22/05
3.630
8,000,000.00
01/20/06
Fullerton Community Bank, FSB
08/05/05
3.800
5,000,000.00
02/03/06
Fullerton Community Bank, FSB
11/16/05
4.380
19,000,000.00
05/17/06
GOLETA
Pacific Capital Bank, NA
10/06/05
3.830
2,000,000.00
02/08/06
Pacific Capital Bank, NA
09/02/05
3.700
4,500,000.00
02/08/06
Pacific Capital Bank, NA
09/23/05
3.680
5,000,000.00
02/08/06
Pacific Capital Bank, NA
08/10/05
3.840
6,000,000.00
02/08/06
Pacific Capital Bank, NA
09/14/05
3.670
7,000,000.00
02/08/06
Pacific Capital Bank, NA
08/12/05
3.830
72,000,000.00
02/10/06
Pacific Capital Bank, NA
12/15/05
3.970
10,000,000.00
03/09/06
Pacific Capital Bank, NA
09/08/05
3.660
30,000,000.00
03/09/06
Pacific Capital Bank, NA
09/30/05
3.910
78,000,000.00
03/30/06
Pacific Capital Bank, NA
12/07/05
4.350
85,000,000.00
06/07/06
GRANADA HILLS
First State Bank of California
07/20/05
3.560
3,000,000.00
01/19/06
First State Bank of California
12/01/05
4.000
7,000,000.00
03/02/06
19
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE YIELD
AMOUNT ($)
DATE
GRANADA HILLS (continued)
First State Bank of California
12/16/05 3.960
2,000,000.00
03/17/06
HAWTHORNE
Western Federal Credit Union
10/21/05 3.890
30,000,000.00
01/20/06
IRVINE
CommerceWest Bank, NA
09/30/05
3.540
5,000,000.00
01/06/06
CommerceWest Bank, NA
11/17/05
4.360
500,000.00
05/18/06
Commercial Capital Bank
09/30/05
3.530
10,000,000.00
01/06/06
Commercial Capital Bank
10/07/05
3.660
60,000,000.00
01/06/06
Commercial Capital Bank
10/14/05
3.790
105,000,000.00
01/13/06
Commercial Capital Bank
11/16/05
4.020
115,000,000.00
02/15/06
Commercial Capital Bank
12/15/05
3.990
50,000,000.00
03/16/06
LA JOLLA
Silvergate Bank 12/09/05 4.090 5,000,000.00 03/10/06
LIVERMORE
Valley Community Bank 09/16/05 3.780 6,000,000.00 03/17/06
LODI
Farmers & Merchants Bk Cen CA 07/07/05 3.440 25,000,000.00 01/05/06
Farmers & Merchants Bk Cen CA 12/15/05 3.990 10,000,000.00 03/16/06
LOS ANGELES
1st Century Bank, NA
09/28/05
3.550
10,000,000.00
01/05/06
1st Century Bank, NA
12/15/05
4.000
10,000,000.00
03/16/06
Broadway Federal Bank, FSB
07/08/05
3.500
2,500,000.00
01/06/06
Broadway Federal Bank, FSB
09/09/05
3.720
3,000,000.00
03/10/06
Cathay Bank
10/06/05
4.060
38,000,000.00
04/06/06
Cathay Bank
10/20/05
4.200
25,000,000.00
04/20/06
Cathay Bank
11/09/05
4.310
25,000,000.00
05/10/06
Cathay Bank
11/17/05
4.380
15,000,000.00
05/17/06
Cathay Bank
11/16/05
4.380
25,000,000.00
05/17/06
Cathay Bank
11 /30/05
4.340
42,000,000.00
06/01 /06
Cathay Bank
12/08/05
4.380
55,000,000.00
06/08/06
Cathay Bank
12/15/05
4.380
25,000,000.00
06/15/06
20
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
LOS ANGELES (continued
Center Bank
07/21/05
3.580
15,000,000.00
01/19/06
Center Bank
09/14/05
3.790
20,000,000.00
03/15/06
Center Bank
09/21/05
3.850
20,000,000.00
03/22/06
Center Bank
12/21/05
4.360
25,000,000.00
06/21/06
CHB America Bank
10/13/05
4.030
4,300,000.00
04/13/06
Citibank (West), FSB
10/06/05
3.730
150,000,000.00
01/05/06
Citibank (West), FSB
10/13/05
4.060
100,000,000.00
04/13/06
Citibank (West), FSB
10/19/05
4.190
100,000,000.00
04/19/06
Citibank (West), FSB
10/26/05
4.240
50,000,000.00
04/26/06
Commonwealth Business Bank
10/07/05
3.690
5,000,000.00
01/06/06
Eastern International Bank
11/02/05
4.260
900,000.00
05/03/06
Eastern International Bank
12/08/05
4.360
1,000,000.00
06/08/06
Far East National Bank
11/02/05
3.990
25,000,000.00
02/01/06
Far East National Bank
11/09/05
4.010
25,000,000.00
02/08/06
First Standard Bank
12/27/05
4.060
5,000,000.00
03/27/06
Hanmi Bank
10/13/05
3.700
10,000,000.00
01/12/06
Hanmi Bank
07/14/05
3.490
25,000,000.00
01/12/06
Hanmi Bank
07/29/05
3.730
10,000,000.00
01/27/06
Hanmi Bank
11/03/05
4.000
25,000,000.00
02/02/06
Hanmi Bank
08/04/05
3.750
40,000,000.00
02/02/06
Hanmi Bank
09/01/05
3.820
20,000,000.00
03/02/06
Hanmi Bank
12/01 /05
4.030
25,000,000.00
03/02/06
Hanmi Bank
09/14/05
3.770
20,000,000.00
03/15/06
Hanmi Bank
12/14/05
3.940
25,000,000.00
03/15/06
Manufacturer's Bank
10/21/05
3.880
25,000,000.00
01/20/06
Manufacturer's Bank
08/18/05
3.850
25,000,000.00
02/16/06
Manufacturer's Bank
12/21/05
4.010
25,000,000.00
03/22/06
Mellon First Business Bank, NA
10/14/05
3.800
75,000,000.00
01/13/06
Mellon First Business Bank, NA
12/15/05
3.990
50,000,000.00
03/16/06
Mirae Bank
08/05/05
3.780
3,000,000.00
02/03/06
Mirae Bank
08/24/05
3.880
2,500,000.00
02/23/06
Mirae Bank
09/22/05
3.860
2,500,000.00
03/23/06
Mirae Bank
10/14/05
4.080
4,000,000.00
04/14/06
Mirae Bank
11/23/05
4.310
3,000,000.00
05/24/06
Nara Bank, NA
10/20/05
3.900
25,000,000.00
01/19/06
Nara Bank, NA
08/03/05
3.780
20,000,000.00
02/01/06
Nara Bank, NA
11/10/05
4.010
5,000,000.00
02/09/06
Nara Bank, NA
11/17/05
4.040
10,000,000.00
02/16/06
One United Bank
07/14/05
3.530
5,000,000.00
01/12/06
One United Bank
07/14/05
3.530
5,000,000.00
01/12/06
One United Bank
12/07/05
4.080
10,000,000.00
03/08/06
One United Bank
09/22/05
3.890
5,000,000.00
03/23/06
Preferred Bank
11/04/05
3.960
4,000,000.00
02/03/06
21
NAME
LOS ANGELES (continued
Preferred Bank
Preferred Bank
Saehan Bank
State Bank of India (California)
State Bank of India (California)
State Bank of India (California)
Wilshire State Bank
Wilshire State Bank
Wilshire State Bank
Wilshire State Bank
Wilshire State Bank
Wilshire State Bank
MERCED
County Bank
County Bank
County Bank
NATIONAL CITY
Neighborhood National Bank
Neighborhood National Bank
NEWPORT BEACH
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
DATE
YIELD
AMOUNT ($)
DATE
12/15/05
3.970
10,000,000.00
03/16/06
12/15/05
3.970
51,000,000.00
03/16/06
08/19/05
3.870
16,000,000.00
02/17/06
10/27/05
3.990
3,000,000.00
01 /26/06
08/18/05
3.870
2,000,000.00
02/16/06
10/06/05
4.070
3,000,000.00
04/06/06
10/14/05
3.780
19,000,000.00
01/13/06
11/10/05
3.990
8,000,000.00
02/09/06
11/30/05
3.980
58,000,000.00
03/01/06
12/16/05
3.970
3,000,000.00
03/16/06
12/15/05
3.970
10,000,000.00
03/16/06
12/16/05
3.970
23,000,000.00
03/16/06
10/14/05
3.800
10,000,000.00
01/13/06
12/02/05
4.020
5,000,000.00
03/03/06
12/08/05
4.070
10,000,000.00
03/09/06
07/22/05
3.640
2,000,000.00
01/20/06
08/03/05
3.790
2,000,000.00
02/01 /06
Independence Bank
09/23/05
3.510
1,000,000.00
01/05/06
Independence Bank
09/23/05
3.510
1,500,000.00
01/05/06
Orange County Business Bank, NA
09/28/05
3.500
8,000,000.00
01/05/06
Orange County Business Bank, NA
10/13/05
3.680
4,000,000.00
01/12/06
Orange County Business Bank, NA
10/27/05
3.940
4,000,000.00
01 /26/06
Orange County Business Bank, NA
11/16/05
4.000
4,000,000.00
02/15/06
Orange County Business Bank, NA
12/21/05
3.970
4,000,000.00
03/22/06
NORTH HIGHLANDS
SAFE Credit Union
10/14/05
3.810
5,000,000.00
01/13/06
SAFE Credit Union
11/10/05
4.020
20,000,000.00
02/09/06
OAKDALE
Oak Valley Community Bank
10/14/05
3.800
2,500,000.00
01/13/06
Oak Valley Community Bank
12/15/05
3.990
3,500,000.00
03/16/06
22
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
OAKLAND
Metropolitian Bank
07/22/05
3.630
1,000,000.00
01/20/06
Metropolitian Bank
07/28/05
3.720
1,500,000.00
01/26/06
Metropolitian Bank
08/25/05
3.850
1,000,000.00
02/23/06
Metropolitian Bank
08/25/05
3.850
1,000,000.00
02/23/06
Metropolitian Bank
09/21/05
3.850
2,000,000.00
03/22/06
Metropolitian Bank
12/01 /05
4.340
1,500,000.00
06/01/06
ONTARIO
Citizens Business Bank
09/30/05
3.530
25,000,000.00
01/06/06
Citizens Business Bank
11/04/05
3.980
30,000,000.00
02/03/06
Citizens Business Bank
08/18/05
3.850
30,000,000.00
02/16/06
Citizens Business Bank
09/02/05
3.790
25,000,000.00
03/03/06
Citizens Business Bank
12/16/05
3.960
30,000,000.00
03/17/06
PALO ALTO
Greater Bay Bank, NA
07/13/05
3.500
15,000,000.00
01/11/06
Greater Bay Bank, NA
07/13/05
3.500
25,000,000.00
01/11/06
Greater Bay Bank, NA
08/31/05
3.880
25,000,000.00
03/01/06
Greater Bay Bank, NA
09/08/05
3.700
20,000,000.00
03/09/06
Greater Bay Bank, NA
09/08/05
3.700
25,500,000.00
03/09/06
Greater Bay Bank, NA
10/19/05
4.180
50,000,000.00
04/19/06
Greater Bay Bank, NA
11/10/05
4.340
25,000,000.00
05/11/06
Greater Bay Bank, NA
11/10/05
4.340
25,000,000.00
05/11/06
Greater Bay Bank, NA
11/16/05
4.380
33,500,000.00
05/17/06
Greater Bay Bank, NA
11/23/05
4.330
25,000,000.00
05/24/06
Greater Bay Bank, NA
12/01/05
4.340
25,000,000.00
06/01/06
Greater Bay Bank, NA
11/30/05
4.340
30,000,000.00
06/01/06
Greater Bay Bank, NA
12/08/05
4.370
22,000,000.00
06/07/06
Greater Bay Bank, NA
12/07/05
4.370
24,000,000.00
06/07/06
Greater Bay Bank, NA
12/14/05
4.320
30,000,000.00
06/14/06
PALOS VERDES ESTATES
Malaga Bank, FSB
08/05/05
3.800
2,000,000.00
02/03/06
Malaga Bank, FSB
08/19/05
3.870
10,000,000.00
02/17/06
Malaga Bank, FSB
09/02/05
3.790
4,000,000.00
03/03/06
Malaga Bank, FSB
12/14/05
3.960
9,000,000.00
03/15/06
Malaga Bank, FSB
10/06/05
4.060
5,000,000.00
04/06/06
Malaga Bank, FSB
11/09/05
4.310
7,000,000.00
05/10/06
23
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
PASADENA
Community Bank
07/08/05
3.500
10,000,000.00
01/06/06
Community Bank
10/12/05
3.700
15,000,000.00
01/11/06
Community Bank
08/03/05
3.790
25,000,000.00
02/01/06
Community Bank
11/03/05
4.030
15,000,000.00
02/02/06
Community Bank
12/14/05
3.970
10,000,000.00
03/15/06
Community Bank
09/14/05
3.800
10,000,000.00
03/15/06
Community Bank
10/06/05
4.070
10,000,000.00
04/06/06
Wescom Credit Union
10/03/05
3.560
25,000,000.00
01/05/06
Wescom Credit Union
07/13/05
3.520
25,000,000.00
01/11/06
Wescom Credit Union
07/13/05
3.520
40,000,000.00
01/11/06
Wescom Credit Union
10/27/05
4.000
25,000,000.00
01/26/06
Wescom Credit Union
11/17/05
4.060
35,000,000.00
02/16/06
Wescom Credit Union
09/16/05
3.800
15,000,000.00
03/17/06
Wescom Credit Union
12/21/05
4.030
50,000,000.00
03/22/06
PLACERVILLE
El Dorado Savings Bank
12/21/05
3.990
10,000,000.00
03/22/06
El Dorado Savings Bank
04/29/05
3.390
5,000,000.00
04/28/06
POMONA
PFF Bank and Trust
07/21/05
3.580
20,000,000.00
01/19/06
PFF Bank and Trust
08/26/05
3.850
20,000,000.00
02/24/06
PFF Bank and Trust
09/02/05
3.790
20,000,000.00
03/03/06
PFF Bank and Trust
11/03/05
4.310
20,000,000.00
05/04/06
PFF Bank and Trust
12/07/05
4.370
20,000,000.00
06/07/06
PORTERVILLE
Bank of the Sierra 10/20/05 3.900 10,000,000.00 01/19/06
RANCHO SANTA FE
La Jolla Bank, FSB
11/03/05
3.970
20,000,000.00
02/01/06
La Jolla Bank, FSB
11/02/05
3.970
25,000,000.00
02/01/06
La Jolla Bank, FSB
11/10/05
4.010
15,000,000.00
02/09/06
La Jolla Bank, FSB
11/16/05
4.040
25,000,000.00
02/15/06
La Jolla Bank, FSB
09/01/05
3.840
10,000,000.00
03/02/06
La Jolla Bank, FSB
12/01/05
4.000
35,000,000.00
03/02/06
La Jolla Bank, FSB
12/15/05
3.990
10,000,000.00
03/16/06
La Jolla Bank, FSB
12/16/05
3.990
5,000,000.00
03/17/06
24
NAME
REDWOOD CITY
Provident Central Credit Union
Provident Central Credit Union
RICHMOND
TIME DEPOSITS
DEPOSIT
DATE YIELD
10/27/05 4.250
12/01 /05 4.340
PAR MATURITY
AMOUNT ($) DATE
20,000,000.00 04/27/06
20,000,000.00 06/01/06
The
Mechanics
Bank
07/08/05
3.500
10,000,000.00
01/06/06
The
Mechanics
Bank
07/27/05
3.720
20,000,000.00
01/25/06
The
Mechanics
Bank
08/04/05
3.780
10,000,000.00
02/02/06
The
Mechanics
Bank
03/03/05
3.250
10,000,000.00
03/03/06
The
Mechanics
Bank
09/14/05
3.770
10,000,000.00
03/15/06
The
Mechanics
Bank
04/01/05
3.490
10,000,000.00
04/05/06
The
Mechanics
Bank
10/14/05
4.110
10,000,000.00
04/14/06
The
Mechanics
Bank
10/20/05
4.210
10,000,000.00
04/20/06
The
Mechanics
Bank
10/28/05
4.270
10,000,000.00
04/28/06
The
Mechanics
Bank
11/04/05
4.300
10,000,000.00
05/05/06
The
Mechanics
Bank
12/08/05
4.390
10,000,000.00
06/08/06
RIVERSIDE
Provident Savings Bank
10/06/05
3.720
25,000,000.00
01/05/06
Provident Savings Bank
08/03/05
3.780
25,000,000.00
02/01 /06
Provident Savings Bank
08/18/05
3.850
25,000,000.00
02/16/06
Provident Savings Bank
09/22/05
3.880
25,000,000.00
03/23/06
ROCKLIN
Five Star Bank
09/28/05
3.500
12,000,000.00
01/05/06
Five Star Bank
10/26/05
3.900
2,000,000.00
01/25/06
Five Star Bank
08/12/05
3.830
3,000,000.00
02/10/06
Five Star Bank
09/15/05
3.740
3,000,000.00
03/16/06
SACRAMENTO
American River Bank
07/08/05
3.490
1,000,000.00
01/06/06
American River Bank
07/28/05
3.720
1,500,000.00
01/26/06
American River Bank
08/26/05
3.850
2,000,000.00
02/24/06
American River Bank
09/08/05
3.700
1,000,000.00
03/09/06
American River Bank
09/15/05
3.780
1,250,000.00
03/16/06
American River Bank
09/22/05
3.880
2,000,000.00
03/23/06
American River Bank
10/05/05
3.950
1,500,000.00
04/05/06
American River Bank
12/15/05
4.380
1,250,000.00
06/15/06
Bank of Sacramento
11/09/05
3.990
1,500,000.00
02/08/06
Bank of Sacramento
11/30/05
4.000
2,000,000.00
03/01/06
25
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SACRAMENTO (continued
Merchants National Bank of Sacramento
07/21/05
3.580
2,000,000.00
01/19/06
Merchants National Bank of Sacramento
10/12/05
4.040
2,000,000.00
04/12/06
Merchants National Bank of Sacramento
12/21/05
4.380
2,000,000.00
06/21/06
River City Bank
07/29/05
3.750
3,000,000.00
01/27/06
River City Bank
10/05/05
3.930
2,000,000.00
04/05/06
River City Bank
11/23/05
4.310
2,000,000.00
05/24/06
The Golden One Credit Union
11/30/05
4.000
25,000,000.00
03/01/06
The Golden One Credit Union
12/21/05
4.010
25,000,000.00
03/22/06
U.S. Bank, NA
07/07/05
3.440
100,000,000.00
01/05/06
U.S. Bank, NA
11/02/05
3.970
75,000,000.00
02/01/06
U.S. Bank, NA
08/11/05
3.860
100,000,000.00
02/09/06
U.S. Bank, NA
11/18/05
4.040
100,000,000.00
02/17/06
U.S. Bank, NA
11/23/05
4.060
25,000,000.00
02/23/06
Union Bank of California, NA
07/15/05
3.530
175,000,000.00
01/13/06
Union Bank of California, NA
08/04/05
3.770
150,000,000.00
02/02/06
Union Bank of California, NA
12/15/05
4.380
150,000,000.00
06/15/06
SAN DIEGO
First Future Credit Union
09/02/05
3.790
5,000,000.00
03/03/06
First Future Credit Union
09/02/05
3.790
15,000,000.00
03/03/06
First Future Credit Union
09/14/05
3.790
8,000,000.00
03/15/06
First Future Credit Union
11/23/05
4.330
15,000,000.00
05/24/06
First United Bank
08/12/05
3.850
1,000,000.00
02/10/06
First United Bank
10/13/05
4.030
2,000,000.00
04/13/06
Mission Federal Credit Union
08/31/05
3.890
10,000,000.00
03/01/06
Mission Federal Credit Union
10/13/05
4.080
10,000,000.00
04/13/06
SAN FRANCISCO
America California Bank
07/07/05
3.420
6,000,000.00
01/05/06
America California Bank
09/02/05
3.770
2,000,000.00
03/03/06
Oceanic Bank
09/13/05
3.800
4,000,000.00
09/13/06
Trans Pacific National Bank
10/12/05
3.700
1,000,000.00
01/11/06
Trans Pacific National Bank
08/04/05
3.780
1,000,000.00
02/02/06
Trans Pacific National Bank
11/30/05
4.010
1,000,000.00
03/01/06
Trans Pacific National Bank
12/16/05
3.970
1,000,000.00
03/17/06
Trans Pacific National Bank
09/22/05
3.860
1,000,000.00
03/23/06
United Commercial Bank
07/14/05
3.510
55,000,000.00
01/12/06
United Commercial Bank
10/13/05
3.720
90,000,000.00
01/12/06
United Commercial Bank
10/26/05
3.940
40,000,000.00
01/25/06
United Commercial Bank
11/23/05
4.060
20,000,000.00
02/23/06
United Commercial Bank
11/30/05
4.000
50,000,000.00
03/01/06
26
TIME DEPOSITS
DEPOSIT
PAR
MATURITY
NAME
DATE
YIELD
AMOUNT ($)
DATE
SAN FRANCISCO (continued)
United Commercial Bank
12/16/05
3.960
65,000,000.00
03/17/06
United Commercial Bank
12/02/05
4.360
25,000,000.00
06/02/06
United Commercial Bank
12/09/05
4.370
25,000,000.00
06/09/06
SAN JOSE
Comerica Bank
08/12/05
3.870
25,000,000.00
02/10/06
Comerica Bank
10/07/05
4.040
50,000,000.00
04/07/06
Comerica Bank
10/26/05
4.230
25,000,000.00
04/26/06
Meriwest Credit Union
07/21/05
3.600
5,000,000.00
01/19/06
Meriwest Credit Union
09/14/05
3.800
5,000,000.00
03/15/06
Meriwest Credit Union
10/12/05
4.050
10,000,000.00
04/12/06
Santa Clara Co. Federal Credit Union
08/05/05
3.820
7,500,000.00
02/03/06
Santa Clara Co. Federal Credit Union
08/19/05
3.890
5,000,000.00
02/17/06
Santa Clara Co. Federal Credit Union
11/04/05
4.300
2,500,000.00
05/05/06
SAN LUIS OBISPO
Mission Community Bank
09/01/05
3.840
1,000,000.00
03/02/06
Mission Community Bank
10/05/05
3.950
2,500,000.00
04/05/06
Mission Community Bank
10/26/05
4.240
2,500,000.00
04/26/06
Mission Community Bank
12/08/05
4.390
1,000,000.00
06/08/06
San Luis Trust Bank
10/19/05
4.140
1,700,000.00
04/19/06
SAN MARINO
East West Bank
07/08/05
3.490
50,000,000.00
01/06/06
East West Bank
10/12/05
3.690
42,000,000.00
01/11/06
East West Bank
11/04/05
3.980
35,000,000.00
02/03/06
East West Bank
11/09/05
3.990
25,000,000.00
02/08/06
East West Bank
11/10/05
3.990
25,000,000.00
02/08/06
East West Bank
11/17/05
4.040
38,000,000.00
02/16/06
East West Bank
12/15/05
3.960
25,000,000.00
03/15/06
East West Bank
12/14/05
3.960
25,000,000.00
03/15/06
East West Bank
11/23/05
4.330
25,000,000.00
05/24/06
East West Bank
12/09/05
4.380
85,000,000.00
06/09/06
SANTA ROSA
Summit State Bank 07/29/05 3.750 4,000,000.00 01/27/06
Summit State Bank 12/16/05 3.960 6,000,000.00 03/17/06
Summit State Bank 12/21/05 4.350 6,000,000.00 06/16/06
27
TIME DEPOSITS
DEPOSIT PAR MATURITY
NAME DATE YIELD AMOUNT ($) DATE
SONORA
Central California Bank 09/23/05 3.830 5,000,000.00 03/24/06
STOCKTON
Pacific State Bank
07/07/05
3.420
1,000,000.00
01/05/06
Pacific State Bank
10/05/05
3.930
1,000,000.00
04/05/06
Pacific State Bank
11/10/05
4.320
5,000,000.00
05/11/06
Washington Mutual Bank, FA
07/21/05
3.590
75,000,000.00
01/19/06
Washington Mutual Bank, FA
08/19/05
3.880
60,000,000.00
02/17/06
Washington Mutual Bank, FA
12/14/05
4.330
45,000,000.00
06/14/06
TORRANCE
Chinatrust Bank (USA)
10/14/05
3.810
40,000,000.00
01/13/06
Chinatrust Bank (USA)
10/21/05
3.890
30,000,000.00
01/20/06
Chinatrust Bank (USA)
11/10/05
4.020
20,000,000.00
02/09/06
Chinatrust Bank (USA)
12/09/05
4.100
35,000,000.00
03/10/06
TRACY
Service 1st Bank
12/15/05
4.380
2,000,000.00
06/15/06
VACAVILLE
Travis Credit Union
11/30/05
4.340
40,000,000.00
06/01/06
WALNUT CREEK
Bank of the West
10/14/05
3.800
134,000,000.00
01/13/06
Bank of the West
10/28/05
3.950
176,500,000.00
01/27/06
Bank of the West
11/18/05
4.040
242,000,000.00
02/17/06
Bank of the West
12/15/05
3.990
82,000,000.00
03/16/06
WHITTIER
Banco Popular North America
10/13/05
3.740
24,000,000.00
01/12/06
Banco Popular North America
10/28/05
3.970
16,000,000.00
01/27/06
Banco Popular North America
11/16/05
4.060
25,000,000.00
02/15/06
TOTAL TIME DEPOSITS DECEMBER 2005
7,638,995,000.00
28
BANK DEMAND DEPOSITS
December 2005
($ in thousands)
DAILY BALANCES
DAY OF
BALANCES
WARRANTS
MONTH
PER BANKS
OUTSTANDING
1
$ 512,760
$ 3,200,179
2
652,711
2,495,988
3
652,711
2,495,988
4
652,711
2,495,988
5
651,561
2,228,544
6
422,523
2,337,473
7
338,251
2,370,142
8
759,112
2,514,675
9
386,752
2,392,679
10
386,752
2,392,679
11
386,752
2,392,679
12
342,537
2,116,847
13
438,131
2,077,490
14
525,655
1,967,973
15
818,041
2,456,886
16
746,070
2,796,094
17
746,070
2,796,094
18
746,070
2,796,094
19
637,543
2,676,392
20
615,192
2,236,472
21
275,196
2,145,762
22
115,995
2,042,040
23
524,188
2,274,331
24
524,188
2,274,331
25
524,188
2,274,331
26
524,188
2,274,331
27
702,019
2,003,493
28
953,447
2,605,273
29
890,978
2,648,197
30
963,231
3,687,309
31
963,231
3,691,704
a/
AVERAGE DOLLAR DAYS
$ 592,863 -
The prescribed bank balance for December was $468,928. This consisted of
$323,120 in compensating balances for services, balances for uncollected
funds of $143,457 and a deduction of $-2,349 for December delayed deposit
credit.
29
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 December 21, 2005, 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 asso6
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. 1678
$ 323,120,000
The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of
computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as
a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any
deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount
provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in
the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection
periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in
such a manner as to realize the maximum return consistent with safe and prudent treasury management.
2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest -
bearing deposits in banks and savings and loan associations as follows:
From
To
Transactions
( 1)
12/19/05
12/23/05
$
1,168,100,000
(2)
12/26/05
12/30/05
$
982,000,000
(3)
01/02/06
01/06/06
$
(730,400,000)
(4)
01 /09/06
01 /13/06
$
486,400,000
(5)
01/16/06
01/20/06
$
1,190,900,000
(6)
01/23/06
01/27/06
$
748,700,000
(7)
01/30/06
02/03/06
$
(216,300,000)
(8)
02/06/06
02/10/06
$
(195,500,000)
(9)
02/13/06
02/17/06
$
989,900,000
Time Deposits in
Various Financial
Institutions
In Securities (sections 16503a Estimated
(section 16430)* and 16602)* Total
$ 47,626,105,000 $ 7,633,995,000 $ 55,260,100,000
$ 48,608,105,000 $ 7,633,995,000 $ 56,242,100,000
$ 47,877,705,000 $ 7,633,995,000 $ 55,511,700,000
$ 48,364,105,000 $ 7,633,995,000 $ 55,998,100,000
$ 49,555,005,000 $ 7,633,995,000 $ 57,189,000,000
$ 50,303,705,000 $ 7,633,995,000 $ 57,937,700,000
$ 50,087,405,000 $ 7,633,995,000 $ 57,721,400,000
$ 49,891,905,000 $ 7,633,995,000 $ 57,525,900,000
$ 50,881,805,000 $ 7,633,995,000 $ 58,515,800,000
From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested
in prime commercial paper under section 16430(e), Government Code.
Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the
amounts and for the same types of investments as specifically designated above.
Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by
which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance
of $ 323,120,000.
Dated: December 21, 2005
* Government Code
POOLED MONEY INVESTMENT BOARD:
Signatures on file at STO and SCO
Chairperson
Member
Member
BOARD MEMBER ITEMS
Investment Advisory Board
Meeting Date: March 8, 2006
Chairperson Deniel asked that the Board consider a written response to Councilmember
Osborne's comments from the February 8, 2006 Investment Advisory Board meeting
and a review of the January 17, 2006 City Council Minutes which have been attached.
City Council Minutes 4 January 17, 2006
Council Member Henderson commented �onthe new Ladder T t was
just approved and that had been and during so 7of the
Council Member Sniff asked how quickly this equipment c,o6 get on -scene in
La Quinta from its permanent location in In/aa hief Dorian Cooley
responded the agreement calls for the trusite anywhere in the
City of La Quinta within 15 minutes. He uestions regarding the
trucks' ability to reach the top of very hiand its elevated high
pressure stream hose capability stating it iextended to 100 feet
and the stream allows for an elevated sour
Council Member Henderson asked Aout the turning radius of this large
vehicle. Chief Cooley responded t e ladder truck will turn in a tighter radius
than the fire engines because itVas dual steering capability front and back.
BUSINESS SESSION
7. CONSIDERATION �f RECIPIENT FOR THE DESERT SENIOR. INSPIRATION
AWARD PROGRAc(1A
Mayor Ado" excused himself and left the dais due to a potential conflict of
interest c ated by the fact his wife is one of the nominees for this honor.
City anager Genovese, acting as the Interim Community Services Director
prp§ented the staff report.
MOTION: It was moved by Council Members.Osborne/Henderson to approve
nomination of Diane Adolph to be the City of La 0n- a e for
2006. Motion carried unanimously with Council Member Perkins ABSENT.
2. RECEIVE AND FILE TREASURER'S REPORT AS OF NOVEMBER 30, 2005
Council Member Osborne addressed his concerns regarding the City's rate of
return on investments for the past year and a half. He said his research
shows approximately $600,000 in revenue was not made on the funds
available to be invested, over that period of time as compared to the
benchmark which is the six-month U.S. Treasury Bills. He explained that he
is not asking his fellow Council Members to direct the investments be made
more aggressively, or that the risk be raised, only that the investments
receive more attention and additional tools be given to staff to achieve that
City Council Minutes 5 January 17, 2006
objective. He discussed the recommendation to hire a professional money
manager that has been discussed by the Investment Advisory Board and his
research shows if a professional money manager were retained with the cost
based on paying one -quarter percent, it would still net over $250,000 per
year in additional revenue within the City's current investment policy.
Council Member Osborne recommended either the City hire a money
manager or someone to be on staff, who can spend the required time to
increase the rate of return and insure liquidity. He noted, during the 7 years
he was on the City's Investment Advisory Board, the City consistently
earned more than the 6-month Treasury bill yield. For the past 19 months
the City has earned below that benchmark and he felt it was an indicator
something needs to be done about the methods currently being used.
Council Member Henderson responded that she is not sure the return on the
investments has been a long term situation and felt that staff has not
requested any additional help or indicated they felt a need to retain an
investment advisor. She indicated she feels until the City Manager indicates
a need for additional investment assistance she isn't prepared to consider
that suggestion.
Council Member Sniff suggested Council Member Osborne make a written
proposal to the City Council for action. He indicated he isn't comfortable
with a verbal recommendation that the Council and Staff can't study and
base their recommendations on. He felt it is reasonable to make a request
of Council Member Osborne to prepare a report that the Finance Director can
look at as well as the Council and Investment Advisory Board.
Mayor Adolph said he doesn't oppose taking a look at doing something
different, but his major concern is the security of the city's reserves and if
there are ways to maintain that security he would be open for changes. He
expressed confidence in the Finance Director's ability to follow the Council's
direction with regard to making investments.
Council Member Osborne responded that he is not criticizing staff but he
feels that the economy has been going up over the past 19 months and the
rate of return on the City's investments has been going down. He further
stated he would be more than happy to go to a meeting of the Investment
Advisory Board to discuss his concerns with them since the Board is
composed of individuals who are more knowledgeable than he and have
many more years of experience than he has in banking and investments.
Fannie's Funny Business
rIn he stock market seemed relieved yester-
day when Warren Rudman's 2,652-page
report into Fannie Mae's accounting trou-
bles didn't report major new discrepancies in
the mortgage 'giant's
books, That news was What's a lost
enough to put the stock
up about 2% on the day among Belt
after a nearly 4% rise
Wednesday ahead of the report's release.
And we suppose it is good news of a sort that
Fannie. Mae's accounting restatement, for
which the world has been waiting for more than
a year, won't grow from the $10.8 billion figure
already estimated. But $10.8 billion is big
enough as it is; WorldCom's fraud came to
"only" $11 billion. The report's, main findings
paint the picture of a company that routinely
flouted both the rules and law. Some conclusions
from the executive summary give a flavor:
• "[M]anagement's accounting practices in
virtually all of the areas that we reviewed were
not consistent with GAAP, and, in many areas,
management was aware of the departures from=
GAAP" (emphasis added).
• "[E]mployees who occupied critical ac-
counting, financial reporting, and audit func-
tions at the Company were either unqualified F
for their positions, did not understand their
roles, or failed to carry out their roles properly."
• "[T]he information that management pro-
vided to the Board of Directors with respect to
accounting, financial reporting, and internal
.audit issues generally was incomplete and, at
times, misleading:"
• [T]he Company's accounting systems
were grossly inadequate."
The report also identified one case, in 1998,
where earnings were manipulated specifically -
to meet a bonus target. That one instance was a
w
doozy, however; a $199 million amortization ex-
pense that went unreported in order to make
sure management got its lush payday.
If Fannie Mae were a, normal private com-
pany, it would be
$10.8 billion tarred and feathered
faster than you can
ay friends? say "Enron." But Fan-
nie Mae is not just an-
other private company. It has a federal charter
and an implicit guarantee from the government
(read: taxpayers) of its debt. Which makes it
all the more -vital that Congress reduce the risk
that Fannie Mae and Freddie Mac pose to our fi-
nancial system and the federal fisc.
One of the Rudman - report's more worri-
some findings was that Fannie's derivatives ac-
counting was wrong because Fannie 'claimed
that its hedges exactlymatched its risk expo-
sure when it did not. Fannie has long claimed it
is capable of perfectly hedging the interest -
rate and prepayment risks in its $800 billion
portfolio of mortgage -backed securities. The
Rudman report found that that often was not
true. But the report only looked at the account-
ing issues posed by derivatives and, hedging, so
the public still knows precious little . about the
extent of the portfolio risk.
The report lets former CEO Franklin Raines
off lightly, blaming him mainly for a "culture"
that tolerated the accounting abuses. But the
core of that culture was a belief that critics -in-
cluding us -could be dismissed and assailed be-
cause the company knew it had Congress
bought and paid for. And judging by the laugh-
ably weak reform that Financial Services Chair-
man Mike Oxley passed through the House, it
still does. If Republicans on Capitol Hill want to
know why voters think they've gone native, the
failure to rein in Fannie even after a $10.8 bil-
lion accounting scandal is Exhibit A.
I