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2007 11 14 IABAGENDA INVESTMENT ADVISORY BOARD Finance Conference Room 78-495 Calle Tampico- La Quinta, CA 92253 November 14, 2007 - 4:30 P.M. CALL TO ORDER a. Pledge of Allegiance b. Roll Call 11 PUBLIC COMMENT - (This is the tune set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR Approval of Minutes of Special Meeting on October 9, 2007 for the Investment ,Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for September 2007 VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - October 2007 B. Pooled Money Investment Board Reports -August 2007 C. Meeting Minutes from October 23, 2007 Joint Meeting with the City Council VII BOARD MEMBER ITEMS Vill ADJOURNMENT P.O. Box 1504 • LA QUIN 1A, CALIFORNIA 92247-1504 78-495 CALLS TANINCO • LA Qufx'FA, CALIFORNIA 92253 (760) 777-7000 •FAX (760) 777-7101 4 INVESTMENT ADVISORY BOARD Meeting Date: November 14, 2007 ITEM TITLE: Transmittal of Treasury Report for September 30, 2007 BACKGROUND: Business Session: A Attached please find the Treasury Report for September 30, 2007. RECOMMENDATION: Review, Receive and File the Treasury Report for September 30, 2007. John M. Falconer, Finance Director TO: FROM: SUBJECT' f /f MEMORANDUM l,a Quinta City Council John M Falconer, Finance Director7Treasurer Treasurer's Report for September 30, 2007 DATE: October 31, 2007 Attached is the Treasurer's Report for the month ending September 30, 2007. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in Investment types for the month. Investment Beginning Purchased Notes Sold/Matured Other Chance Cash (3) $ 11,519,388 (1) $ (12,721,471) --Ending $ (1,202,083) $ (12,721,471) LAIF 47,853,084 5,450,000 (7,000,000) 1 46,303,085 (1,549,999) US Treasuries (2) 55.262,918 6,000,000 (8,000,000) 99,086 53,362,004 (1,900,914) US Govt Sponsored Enterprises (2) 59,470,614 (10,000,000) 5.056,154 54,526,768 (4,943,846) Commercial Paper (2) 19,940,137 20,000,000 (20,000,000) (65,483) 19,874,654 (65483) Corporate Notes 2,950,697 5,000,000 0 (22,454) 7,928,243 4,977,546 Mutual Funds 5,767,927 1 1,116,083 6,884,010 1.116.083 Total $ 202,764,765 $ 36,450,000 $ 56,605,388 $ 5,067,304 $ 187,676,681 $ 15.088,084 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code, and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months The City of La Quinta used the Bureau of the Public Debt, U S. Bank Monthly Statement and the Bank of New York Monthly Custodian Report to determine the fair market value of investments at month end. AAA\ �A I0/L0D7 John M. Falconer Date Finance Director7Treasurer 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. 2 {` mf ._. \ / }[/ \!>7!] )>»\! \ \ \ } \� } \ \om ) }\{ E _- OE Eo } \{/\\ \\(\ } }\\ / � � �!t5 G m Y `222222222 .`a222 y SyoSyS XXXXXXXXX 9jP�aX, °� 9E:emXX &-�rvNrv� -ry dv�n m Y ENNNVINNNNN Y� YSiNNVN >�PPP�II - O- WWWWooggW 8 v W�Wme �yg S M �000�N'.N A�-.- yooayV00008 n n000"o E- m E_ 8c8" �q at rr i4 UN �8�� n o� N.g,8E d. I.IONNPWOONN 1'tMNm WNNNH V W9 �LLXX 'b `o N iy ry B8YryryIn 181��01?T -s VIN�s ry Try _ ynWNP��W Ny��M ry �M�nfl m ry On ry1� OZIm+nNN s �� ^- m ONN�P--PNN O� O 0 O O N N p$p a� OP pO Mft OpV WOM�$Wn NYI. 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Z N c0 <O N M �O h n a0 � V3 Z f Z N to m rn n o m y � nr mMo�o u m M(OcofOMM� O d; V V V N N } 0 N N N N N n n O h O O N V R d O o r o O o O O o n n r n n n n n O N N N N N N N N N N O � O O O (p O A N N N N N N N N N N N N N N� rn rn m°'rnrnrnrna,m NNNNNNm �N m mmmmrn�0' m o 000000 0 �000000000 q a O .� O O O O O OV'O o.�oc000000 o �w O O O O O O O O O M c M L O J �0O0 IDM M of a.-000000000 a N �n N In t0 t`> n 00000000 p (Op p M p W 2 1 N U O N N Ul N L 2 2 N N >mumm 2`O O_ LL my�za��.md0ZZZ mo — a— a 0 0_ n EE V w m ��---- amsuu9 _000 W)mmaa g f p N N N N I O O jp •• •-• �cE f'=E fT Or `- m N �m `v `m `m E E 7 0 0` y y y m E E E E m o "EEEE ^'o cioo UU ro UUUU A m �j UUUUU �`- N c N t N c F c m m U m 10I1 m N 2 U m io U m O j m y � a Z v o m c� O_ c m v� n La t m Z t E m E O U i U° o `0co E a m c a Na0UEl dwNdyE t 0 -°rcU UmLc wOc aDrE ° WQ Q 0 m o Od EO-o = wSmC°c E EacmwotcJfUdmUK m ma E> oom�« ° 2»zUzoin= 3 =LZLc<0CDo aa:3 0 M a E E m a CV$ V O �cg nE n�o E UON � 7 Cakdf La Duvaz R sdduNdmn dA rid xq Surylus Funds CH. Ra4vakouadrrl A9anry and Frnarc'vg AiAlds, S¢premisr 30, YaD] RHvxz.1 Aquy Fula IW,670.681 Lass P¢% cast Funds (1,OW1 45a NOmSuMWS Funds (1 W6.562) Bala Su Wa FundsS CM Cash 6 Mveshn Bank AcwuKs Nams-AVNaE Su sus T Sr°pl¢ S= Wantsfayo-Bnmyq W.a Nd Clvgng Boak S (2.315.920I S Yes Fy9d-S51eep Pao k-Daual W Sweep 1,0]],Ild WHA Fa M -pamal No Yea 4q Cl Ai 1,W0 _ - TMM-BaMAcmrmp 39 23 S ]9,523 S 39523 S l,MM3 S 39.523 $ SmPWs Surplw A% No AE !b Surpus Adualual% S (2.315,9201 3 ]22,d62 S 1,0.G,SfiE I Yes 1,W]]N S)1p]],31Q 1.W0 1.069 S LZd16O5 S 2,b9,14 5 1.00],562 y.6K5X 0.02f1X 5 TreasW AnwrbN Cutb6lan-avaAad S SI°p5's Su 8¢ S tauCUT Value YesAd. ya � Surpus aX FUMz Surylus Na Achul Y. Yes TMaI-US ireaw D IA300Y. DDDo9x Pmme Commerpal Paper CusWian-AvailaplY sus -Yes Issuer? Pock Valua Surylus Bluplu5. BaJrMNew York-D¢marvl eye Ves A Y¢s Bari IXNw Ywk� Demand Yes Pmrl¢r6Gylb d'95J,JBJ 1953p0J d,95]]8] Bank./Nea Vprk-Gemarp Y¢a SMmens 1.95d,328 d,95d,328 d,95d,]26 Bank nI Y .A"penal Yes MereM1¢ d,4d,9]] 4,944,.) d9&,9]) T.bl- PnmeCmmmernal Pa r d96196b 19,BP,4d d961,966 f9.6A,654 0,981966 98)d,65d gXfus AauH% Surplus Yes fffTl a zz44% 42azx Local A9a7i", sMenlFwA Nang-pvatlaq 5 m Suryus SUrylus BY. t06a)p/a $Ur sus IAIFCM-amal at T Book $bk Pod Y¢s AE y¢s Np A0 Surplus gllfurNz Surpus No tAIFReqDema•C Yes ]].95]58] SUIe PwI J),95)56] (11d51fd)- Paual% Y¢s ioldl-SlaN Pool 6]K,SYl 46,b3,095 63K522 aA S(M.85 6345,521 1,1d9,166 41053,91] - - 14 fi]t]% 2J 60004. Trial CM lnveslmanls t]6,631,)50 1166R}Sp 1}49.166 126,]65,563 _ 45]95'A 6]]OO6% Tau] CM Caph B lnvesimeus f2],K0,66) C� 118,6]3,1IJ (2.149,160) 136,d1],105 13d1606 }319,168 1,00],Sfi1 616990'R 6))258Y. Fizralq IlnvesMwId. POMOIn-Day MsesMw6 Cusbndan Av.Mbfl Su luuedT Ayaygnd 5ysus AO BTpsus Suwus AO SupOu' pYFwxls Surplus NO AGt , Yes T4Fads AudunarCIP 2(pdFWnq AWgrgy LlP 26M Fkn vgNgMp Lp 204F.Alps LIP TMN-US Tre Ym \'es Yes Yea USTdkauy BN U.S Tgauy&1 U.S T.Nau, Bi U&T.. B01 1],BSBBw 5.84.029 11,41.42a 21.]855fi] 53,362,04 13856889 5.864.029 11,41,428 11]6586] 53,362,Ns 1]R50.40 5,84.@9 11,41428 5]]6566] OU ' 26 d]29% 285064% PgBop-MWrAl Funds MUroY Mandel Book SUrylus Trlalee-Avaid6P Sur us MupglFuq VaNre Surylus Chia Cer&rUS.BNk-Prpp1 YES 1tl Anian®II 52$,929 as 522,929 Ad Yas Gxc CenRrU SBaN-Oedt S- YES Ipgmerlcdn 522929 19W RDAUS BW-M Gve YI:S Itlpmenwr 1995 RDAUSBaN-Cp YI:S 1tl Ame0on - 1995RMUSBenk-Spetlal Furvl 'S Iy Amerlian 204 Fn AUM-1995 US Bank-Esvow Y. 1tl Anesrun 1936 RDA U'S Bath-CIP YES 1al AmMun 1998 ROA US BdN-D. Sv¢ Yf5 fai pmerpn 4996 RDAUSSMF-S"'Fund YES 1RAmerinn _ f94 RDAUS Bank -GP YES INA.= _ 2WI RDAUS Bahr-ONSsv YES 1pAmdkan A UE Bank-CW YES Ist penman US Bank -DM Svc YES lggmetlnn AUB BaM-CIP YES lsi Amerman 2,)41,p93 2,]d109J e RDAUS Band-OSYES Ialgmerkan 2,)41" L3Tj�� RDA UBBA,I YES IAAnleskyl _d - RDAUS-Band-CIP YES 1AAmercan WUSBank-GP MUSBank-COf YES tgAngkan 3,619,94 ],BI9,998 0619,94 YES 14AmarlonI-MWuy Ful 6,681,0f0 B,B4,010 6,84,010 All FUMs ActaalX Surplus Yei3-M U 368I6% Tall& lApMl NvesNrNrts 60,2K.014 �� 60 K,44 ) 60.24fi,4d ]i.1010% ]212d]Y. Grand Tahl ]e1.6]6,66] 14 H6,L] 1i 2a9166 1,291.64 1,349,14 1.00),5@ 1000000 t000000Y. El *¥! \\\\\ \\\\\} })( C,i } } } y\(}(/ //ƒ\(\15 \ ( \ `kf /\( \\\j ( - >§ | \EC. - ! \ / ) i //k � \\\: eee il M. 18 §f) �` -/� §{}! \\}\\ / \/\\\ }\/}/ ///}} /\\}\ \ !/\ EEE- N � � \}\a,: A ! --- Om \ „)\}(„)}� \jje�� ` ` 10 m a N Lp d E 0 c i N I c Cd L I 1 N � • � _ Q O c E w I c I I I c Q • T 5 • I 'J y} E I cdc b I N w I � 0 Q I I • ofC LL S I ' c i E w 1 c I I C O I r T � 1 N I € � y � i > c ! z 16 N E ci a ry� �+ C. V d ) a d Z J rn C a ¢ E o r. c «`mow O 00 0 D� O lopO O M O O N o Cl 0 0 0 4D o o �;p L6 V' c+7 N d O I Q a INVESTMENT ADVISORY BOARD Correspondence & Written Material Item A Meeting Date: November 14, 2007 TITLE; Month End Cash Report — October 2007 BACKGROUND: This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances), but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. *ohnconer, Finance Director V �� oox r m m N m w� �No, n omrvui m N m V l° N OOOOO m Ip .m..m �p N x N m 2 ES g QQ o o o o x d ON n oMO N om rn m n » o o o wamm o'^ o m a o Q m C— d Ol m 17 m M N N m m m m Q LL 5m N N N N N y N 0 p o m N e H N ei m � 0 m o 0 0 of Z'LL¢a a a w m m m m m O wo LL O O O O O O O GO O O O O O O O O O O O LL N g O n OV r y n N n N O O n N dW w m y O m O m O m LL m m 0 W O m W a a o e x i° m io m m o 0 mo nN VI W m m O (NO mmn � o 3 m O n O a O d m q N n d m 2 m U O U C m> h E j E d E E W? L o N d dr (J N x C a d V N j 'Jw d C) O d ry d d n A j V o o r r< W W Q a Q W a Q w z a I LL Q� -o N Q N L r ixu. wuuuci Liai raj,vi r�ar.ca wru vuwLauuuiga rage i vi j Federal Reserve Release Relea se I About I Announcements I Outstan_dings I Volume statistics I Year-end � Maturi_ty_Di_stribution I Data Download Program (DDP) Data as of October 31, 2007 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust Company Posted November 1, 2007 Discount rates Term ❑� nonfinancial A2/P2 nonfinancial AA financial AA asset -backed 1-day 4.71 ] 5.05 4.67 5.03 7-day 4.61 5.03 4.52 4.97 15-day 4.55 ] 5.02 4.49 4.94 30-day 4.49 � 4.98 4.53 4.80 60-day 4.45 ] 5.04 4.57 4.78 90-day 4.46 ] 5.05 4.60 4.83 Yield curve Money market bK7sis Percent 5.6 5.4 5.2 5.0 4.8 4.6 4.4 1 7 15 30 60 90 Days to Maturity Discount rate spread http://www.federalreserve.gov/Releases/CP/ ll/l/2007 3 ris,m raper MULLS anu vuwLanuuigs ragc�viJ 2001 2002 2003 2004 2005 2006 2007 6 5 4 3 I ;1 2001 2002 2003 2004 2005 2006 2007 Outstandings Weekly (Wednesday), seasonally adjusted hnp://www.federalreserve.gov/Releases/CP/ 11/l/2007 4 rKts: t;ommerctai raper Kates ana uutstanamgs rage s of -i Billions of dolkirs 1190 1090 990 890 790 690 590 490 Billions of dollars 250 2001 2002 2003 2004 2005 2006 2007 210 170 130 1M The daily commercial paper release will usually be available before 11:00am EST. However, the Federal Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When the Federal Reserve Board is closed on a business day, rates for the previous business day will be available through the Federal Reserve Board's Data Download Program (DDP). This policy is subject to change at any time without notice. Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution Data Download Program (DDP) Home I Statistical releases Accessibility I Contact Us Last update: November 1, 2007 http://www.federalreserve.gov/Releases/CP/ 11/l/2007 5 xecent tsus auction xesuits rage i of s Security Issue Maturity Discount Investment Price CUSIP Term Date Date Rate T. Rate N. Per $100 23-DAY 11-01-2007 11-29-2007 3.970 4.049 99.691222 912795642 91-DAY 11-01-2007 01-31-2008 3 920 4.025 99,009111 912795C58 182-DAY 11-01-2007 05.01 2008 3.945 4.092 98.005583 912795E23 29-DAY 10-25-2007 11-23-2007 3.915 3.993 99.684625 912795834 91-DAY 10-25-2007 01-24-2008 3.900 4.004 99.014167 912795C41 182-DAY 10-25-2007 04-24-2008 3.990 4.140 97,982833 91279SD99 28-DAY 10-18-2007 11-15-2007 4.100 4.182 99.681111 912795B26 91-DAY 10-18-2007 01-17-2008 4 185 4.300 98 942125 912795C33 182-DAY 10-18-2007 04-17-2008 4 225 4389 97,864028 912795DSI 28-DAY 10-11-2007 11-08-2007 3.680 3.752 99 713778 912795A92 91-DAY 10-11-2007 01-10-2008 3.925 4.030 99.007847 917795C25 182-DAY 10-11-2007 04-10-2003 4.095 4.251 97.929750 912795D73 28-DAY 10-04-2007 11-01-2007 3.510 3.578 99.727000 912795A84 91-DAY 10-04-2007 01-03-2008 3.840 3.942 99.029333 912795891 182-DAY 10-04-2007 04-03-2008 4.000 4.151 97,977778 912795D65 28-DAY 09-27-2007. 10 25-2007 3.270 3.333 99,745667 912795A76 91-DAY 09-27-2007 12-27-2007 3.820 3.922 99 034389 912795B83 182-DAY 09-27-2007 03-27-2008 4.000 4.151 97.977778 912795D57 28-DAY 09-20-2007 10-18-2007 3.930 4.008 99,694333 912795A68 91-DAY 09-20-2007 12-20-2007 4.050 4.160 98,976250 9127951375 182-DAY 09-20-2007 03-20-2008 4.130 4.288 97,912056 912795D40 4-DAY 09-13-2007 09-17-2007 4.620 4.699 99.948667 912795UB5 28-DAY 09-13-2007 10-11-2007 4.000 4.079 99,688889 912795A50 91-DAY 09-13-2007 12-13-2007 3 800 3.901 99.039444 912795B67 182-DAY 09-13-2007 03-13-2008 4.020 4 172 97,967667 912795D32 28-DAY 09-06-2007 10-04-2007 4.280 4.366 99,667111 912795A43 91-DAY 09-06-2007 12-06-2007 4.350 4.472 98.900417 912795659 182-DAY 09-06-2007 03-06-2008 4 380 4.554 97.785667 912795D24 17-DAY 08-31-2007 09-17-2007 4.500 4.585 99,787500 912795UB5 28-DAY 08-30-2007 09-27-2007 4.600 4.693 99.642222 912795A35 91-DAY 08-30-2007 11-29-2007 4.600 4.732 98.837222 912795842 182-DAY 08-30-2007 02-28-2008 4.590 4.777 97.679500 912795C90 28-DAY 08-23-2007 09-20-2007 4.750 4.847 99,630556 912795A27 92-DAY 08-23-2007 11-23-2007 2.850 2.919 99,271667 912795834 182-DAY 08-23-2007 02-21-2008 3.950 4.098 98.003056 912795C82 28-DAY 08-16-2007 09-13-2007 4.560 4.653 99,645333 912795ZZ7 91-DAY 08-16-2007 11-15-2007 4.630 4.763 98.829639 912795B26 182-DAY 08-16-2007 02-14-2008 4.710 4.905 97.618833 91279SC74 1-DAY 08-15-2007 08-16-2007 5.030 5.114 99,986028 912795ZV6 8-DAY 08-15-2007 08-23-2007 4.100 4 172 99,908889 912795ZW4 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method. 6 http://www.treasurydii-ect.gov/RI/OFBills 11/1/2007 r1tD. 11.1 J--JCICCLCLL 11HCICSL 1CALUS, W CV-VIlly uauy upuale--VClooeI J 1, LVV / rage 1 OI 4 Fecteral Reserve Statistical Release H.15 Selected Interest Rates (Daily) sKIr to Coiricin Release Date: October 31, 2007 Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements Daily update Other formats: Screen reader I ASCII g Daro$FDo:n load The weekly release is posted on Monday. Daily updates of the weekly release are p through Friday on this site. If Monday is a holiday, the weekly release will be p 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 October 31, 2007 2007 2007 Instruments Oct Oct 29 30 Federal funds (effective) 1 2 3 4.84 4.78 Commercial Paper 3 4 5 Nonfinancial 1-month 4.58 4.52 2-month 4.54 4.41 3-month 4.51 4.46 Financial 1-month 4.60 4.56 2-month 4.61 4.57 3-month 4.68 4.65 CDs (secondary market) 3 6 1-month 4.70 4.69 3-month 4.86 4.78 6-month 4.75 4.73 Eurodollar deposits (London) 3 7 1-month 4.75 4.75 3-month 4.95 4.85 6-month 4.83 4.80 Bank prime loan 2 3 8 7.75 7.75 Discount window primary credit 2 9 5.25 5.25 U.S. government securities Treasury bills (secondary market) 3 4 4-week 3.88 3.95 3-month 3.91 3.86 6-month 3.95 3.92 Treasury constant maturities Nominal 10 1-month 3.96 4.03 3-month 4.01 3.96 6-month 4.10 4.07 1-year 4.00 3.98 2-year 3.79 3.82 7 http://www.federalreserve.gov/Releases/HI5/update/ 11/1/2007 rtw: t1.1 D--Jelectea interest Kates, web -only uauy Upaate--uctober .91, 2VU / rage 2 Ot 4 3-year 3.84 3.85 5-year 4.04 4.06 7-year 4.19 4.20 10-year 4.39 4.40 20-year 4.71 4.72 30-year 4.66 4.68 Inflation indexed 11 5-year 1.79 1.81 7-year 1.96 1.98 10-year 2.04 2.06 20-year 2.14 2.17 Inflation -indexed long-term average 12 2.12 2.15 Interest rate swaps 13 1-year 4.59 4.59 2-year 4.44 4.46 3-year 4.51 4.53 4-year 4.61 4.62 5-year 4.71 4.72 7-year 4.87 4.87 10-year 5.03 5.03 30-year 5.28 5.28 Corporate bonds Moody's seasoned Aaa 14 5.53 5.54 Bea 6.37 6.39 State & local bonds 15 Conventional mortgages 16 Footnotes 1. The daily effective federal funds rate is a weighted average of rates on broke 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the curr 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 settl Depository Trust Company. The trades represent sales of commercial paper by deale issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are 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. commercial banks. Prime is one of several base rates used by banks to price short loans. 9. The rate charged for discounts made and advances extended under the Federal Re credit discount window program, which became effective January 9, 2003. This rate adjustment credit, which was discontinued after January 8, 2003. For further info www.federalreserve.gov/boarddocs/press/bcreg/2002/200210312/default.htm. The rate for the Federal Reserve Bank of New York. Historical series for the rate on adjus well as the rate on primary credit are available at www.federalreserve.gov/releas 8 http://www.federalreserve.gov/Releases/H 15/update/ 11 /1 /2007 r": rt. i i--aeiectea interest Kates, wed-vnry Laity update--vctooer .5 t, luu i rage -) or w 10. Yields on actively traded non -inflation -indexed issues adjusted to constant m 30-year Treasury constant maturity series was discontinued on February 18, 2002, on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasu factor for adjusting the daily nominal 20-year constant maturity in order to esti nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositei Source: U.S. Treasury. 11. Yields on Treasury inflation protected securities (TIPS) adjusted to constant Source: U.S. Treasury. Additional information on both nominal and inflation -index found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ind 12. Based on the unweighted average bid yields for all TIPS with remaining terms more than 10 years. 13. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap for a Fixed Rate Payer in return for receiving three month LIBOR, and are based o at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Pa 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 A rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds o 15. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Th 16. Contract interest rates on commitments for fixed-rate first mortgages. Source Note: Weekly and monthly figures on this release, as well as annual figures avail Board's historical H.15 web site (see below), are averages of business days unles Current and historical H.15 data are available on the Federal Reserve Board's web (www.federalreserve.gov/). For information about individual copies or subscriptio Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-7 electronic access to current and historical data, call STAT-USA at 1-800-782-8872 Description of the Treasury Nominal and Inflation -Indexed Constant Maturi Yields on Treasury nominal securities at "constant maturity" are interpolated by from the daily yield curve for non -inflation -indexed Treasury securities. This cu the yield on a security to its time to maturity, is based on the closing market b actively traded Treasury securities in the over-the-counter market. These market calculated from composites of quotations obtained by the Federal Reserve.Bank of constant maturity yield values are read from the yield curve at fixed maturities, and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yiel maturity, for example, even if no outstanding security has exactly 10 years remai Similarly, yields on inflation -indexed securities at "constant maturity" are inte daily yield curve for Treasury inflation protected securities in the over-the-cou inflation -indexed constant maturity yields are read from this yield curve at fixe currently 5, 7, 10, and 20 years. Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements Daily update Otherformats: Screen reader I ASCII 9 http://www.federalreserve.gov/Releases/H15/update/ 11/1/2007 rtcts: rt.ia--3eiectea interest Kates, weo-unty uauy upaate--uctooer.3t, /uui rage'f of -r Statistical releases Home I Economic research and data Accessibility I Conlact_Lis Last update: October 31, 2007 10 http://www.federalreserve.gov/Releases/H 15/update/ 11 /1 /2007 Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report get& 10/16/2007 Daily Yield 5.13 Quartartol Date1f#s t : 5.16 ! l 214 10/17/2007 5.13 516 216 10/18/2007 5.12 5.16 216 10/19/2007 5.12 5.16 217 10/20/2007 5.121 5.15 217 10/21/2007 5.12 5.15 217 10/22/2007 5.12 5.15 215 10/23/2007 5.12 5.15 216 10/24/2007 5.12 5.15 217 10/25/2007 5.11 6.15 212 10/26/2007 5.10 5.15 214 10/27/2007 5.10 5.14 214 10/28/2007 5.10 5.14 214 110/29120071 5.091 5.141 220 Corporate E 0.61 % Commercial 18.29°G LAW Performance Report Quarter ending 9/30/2007 Apportionment Rate: 5.24% Earnings Ratio: .00014311664742946 Fair Value Factor: 1.000553483 PMIA Average Monthly Effective Yields September 2007 5.231% August 2007 5.253% July 2007 5.255% Pooled Money Investment Account Portfolio Composition $61.2 Billion 09/30/07 Reverses Treasuries Mortgages -0.65% 3.51% 2.02% I nano Time Deposits 14 80% gencies 1.28% /BNs 79% 11 E a Z i OO n1` 0,t T M M m ro_ N N W w a O Q m tr0l V N N O (O m N O O V O m N O Fr n N O M V tow V V n m N NwnoJ MN M m O n n N V n M N N Nm m Q No] O N V .0 a a y N _ m E w L N N U � - Q Q N Oy N O O V r N P - m p y n N a 'LO m .0 L i m M M N m O w O d F U a � � _ o � z a o - ' ooww m N V ma�m� Mw O N t0 M O w wMNNwoNo�o i:mMmo �n Cl! CD N W w N V O m Cl O N 41 n V O N V t0 N w m w M On d N Nw Nw nN n m V n Ro t'1 tD n N (7 n N� w V rno �J �owr n w e r o ri @ C j0 L � o O E FL- n O a O a y9 z E a m N F z w J Z d�- m u m c mo Z U U� UOa m b n a q W w a U' g¢ O rn y ¢? C a % a W w LL> N w O a a F ~u a �m'au a'o W a v mG> z0 N QF Y KJ U r� }} mW ZY�QQ o LL E c v a d d w U' ~ .d Q U, O z= O 7 0 (7 o a pc`,2 x 3 u U Z m 2 3 n W K a U z U W d W c d Q w Urr 0 � zQ D a w H Z 5 o OX'N Ir nX Q O J ~a' Z 1- z m B Oa . t> m 55O N N O b O W W C O J O 0 OO MOO -macaw ZIO QmLL ¢ aFmOK W o W OU ml- z Z W O 12 INVESTMENT ADVISORY BOARD Moeting Date: November 14, 2007 1111H114 Pooled Money Investment Board Report for August 2007 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for August 2007 is included in the agenda packet. RECOMMENDATION: Receive & File John M. Falconer, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 2007 WITH AUGUST 2006 (DOLLARS IN THOUSANDS) AUGUST200711 AUGUST2006 CHANGE Average Daily Portfolio $ 69,657,942 57,570,790 $ +2,087,152 Accrued Earnings $ 266,425 $ 241,832 $ +23,593 Effective Yield 5.253 4.946 +0.307 Average Life -Month End (In Days) Total Security Transactions 214 Amount $ 40,229,445 $ Number 844 Total Time Deposit Transactions Amount $ 5,942,000 $ Number 292 Average Workday Investment Activity $ 2,007,454 $ Prescribed Demand Account Balances For Services $ 249,284 $ For Uncollected Funds $ 138,881 $ 1 161 +53 24,426,165 $ +15,803,280 508 +336 4,331,000 $ +1,611,000 186 +106 1,250,311 $ +757,143 243,323 $ +5,961 178,293 $ -39,412 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) AUGUST 31, 2007 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 1,953,063 3.42 -1.69 Bonds 0 0.00 0 Notes 0 0.00 0 Strips 0 0.00 0 Total Government $ 1,953,063 3.42 -1.69 Federal Agency Coupons $ 7,417,140 12.99 +0.21 Certificates of Deposit 9,965,086 17.45 -3.91 Bank Notes 1,000,000 1.75 -0.21 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 7,372,548 12.91 +1.94 Time Deposits 8,869,495 15.53 +1.33 GNMAs 203 0.00 0 Commercial Paper 9,313,452 16.31 -2.15 FHLMC/Remics 1,250,685 2.19 +0.80 Corporate Bonds 374,090 0.66 +0.05 AB 5.5 Loans 8,524,685 14.94 +1.05 GF Loans 1,153,300 2.02 +2.02 Reversed Repurchases -99,250 -0.17 -0.56 Total (All Types) $ 57,094,497 100.00 Pooled Money Other Time Deposits Totals PMIA Monthly Average Effective Yield Year to Date Yield Last Day of Month AUGUST 2007 NUMBER AMOUNT 844 $ 40,229,445 11 92,860 292 6,942,000 1147 $ 46,264,305 6.253 5.264 2 JULY 2007 NUMBER AMOUNT 718 $ 34,169,222 1 570 172 4,626,600 891 $ 38,796,392 5.255 5.266 Pooled Money Investment Account Portfolio Composition $57.1 Billion 08/31 /07 Reverses Treasuries Loans 0.17% 3.42% Mortgages Corporate Boni 0.66% Commercial Paper 16.31 % Tir__ 15.53% 3 19.20% gencies 25.90% INVESTMENT ADVISORY BOARD Correspondence & Written Material Item C Meeting Date: November 14, 2007 TITLE: Meeting Minutes from October 23, 2007 Joint Meeting with the City Council BACKGROUND: The minutes from the joint meeting with the City Council are expected to be approved by the City Council at their November 6, 2007 meeting. Staff will distribute these minutes at the November 14" Investment Advisory Board meeting. RECOMMENDATION: Information item only. ?JohnM. Falconer, Finance Director BOARD MEMBER ITEMS Treasurer's Commentary For the Month of September Cash Balance$ - The portfolio size decreased by $15.0 million. The major reasons for the decrease were construction payments for the City Hall expansion and the Vista Dunes Courtyard Homes project and the semi-annual principal and interest debt service payments. Investment Activity - September saw a return to normal investment activity of three to four purchases per month. The average maturity of the portfolio increased by 20 days to129 days at the end of 'September. As mentioned in the August commentary, the third week in August brought a sudden decline in interest rates based upon the sub -prime housing market disclosures of Country Wide Financial. This resulted in a sudden market increase in the City's portfolio market value due to a flight to credit quality and a sudden decline in the six month US Treasury Ibenchmark by 59 basis points to 4%. The Treasurer follows a buy and hold investment policy. As a result, the sweep account earned a higher than normal $ 12,410 and the bank fees for the month were $ 1,781 which resulted in a net increase of $ 10,629 in real savings. Portfolio Performance - The overall portfolio performance decreased by two basis points from the prior month and ended at 5.06% for the month, with the pooled cash investments yielding 5.16%. The overall portfolio yield (including bond proceeds) was one hundred six (106) basis points over the benchmark, which has increased by fifty seven (57) basis points from August., With the average maturity of 129 days, the portfolio yield should remain at these levels. The Treasurer has more of a barbell maturity schedule with the longer term investments helping to keep yields higher as interest rates will gradually be falling. At this time last year, the portfolio was yielding 4.99% and the benchmark was at 5.00% for virtually no difference so we have made progress in meeting our benchmark. In the short term, the Treasurer has been investing more in LAIF because its rate declines slower in a declining rate environment and in high quality Commercial Paper. The Treasurer has not been investing in Treasury securities because of their low yield, except for bond proceeds to ensure that the funds are available for capital projects, e.g. SilverRock and Vista Dunes Courtyard Homes and the CVHC project at 48' and Adams. Future Thoughts The Treasurer will continue to invest in short term maturities to take advantage of the yield curve - Commercial Paper with 30 to 90 day maturities and Bond proceeds will be laddered in three- and six-month Treasury bills as they mature. Maturing GSE's will be rolled over to the highest yield on curve taking into consideration cash flow needs or in medium term notes.