2009 02 11 IAB9 m=_
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLr 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
February 11, 2009 — 4:30 P.M.
CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
II PUBLIC COMMENT - (This is the time set aside for public comment on any matter not
scheduled on the agenda.)
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on January 14, 2009 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Transmittal of Treasury Report for December, 2008
B. Continued Consideration of Fiscal Year 2008/09 Investment Policies & Work
Plan Items
C. CMTA Conference — Palm Springs, California, April 22 — 24, 2009
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - January 2008
B. Pooled Money Investment Board Reports - November, 2008
VII BOARD MEMBER ITEMS
VIII ADJOURNMENT
PUBLIC NOTICES
The La Quinta Study Session Room is handicapped accessible. If specwl equipment is needed for the hearing impaired, please call
the Finance Department at 777-7150, twenty-four 124) hours in advance of the meeting and accommodations will be made.
Any writings or documents provided to a majority of the Investment Advisory Board regarding any item on this agenda will be made
available for public inspection at the City Clerk counter at City Hall located at 78-495 Calls Tampico, La Quinta, CA 92253, during
normal business hours.
INVESTMENT ADVISORY BOARD
Meeting
January 14, 2009
CALL TO ORDER
Regular meeting of the La Quinta Investment Advisory Board was called to
order at the hour of 4:30 p.m. by Chairman Ross, followed by the Pledge of
Allegiance.
PRESENT: Board Members Moulin, Denial, Ross, Rassi and Park
ABSENT: None.
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia,
Senior Secretary
II PUBLIC COMMENT - None
III CONFIRMATION OF AGENDA
Mr. Falconer advised that the handout for the joint meeting minutes of
November 251" with City Council were included for informational
purposes only.
Board Member Daniel requested that two items be added for
discussion under Board Member Items; those items being the joint
meeting with City Council and her conversation with Mayor Adolph.
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on December 10, 2008 for the
Investment Advisory Board.
Chairman Ross advised on page 4, under the Business Session
Item that the words "motion carried unanimously" be added to
reflect the Board's vote.
Board Member Moulin made general comments on his
observation of Mr. Gruber's comments in reference to the
accrual of pension liability and GASB 45.
1
It was agreed upon by the Board to list cash as a separate item
with all the actual investments subtotaled with cash added so
that pages 2 and 7 coincide.
The Board along with staff reviewed the Treasurer's Report and
made the following recommendations:
Page 8: Mr. Falconer advised that this page is not required
but is useful to staff with reconciling booked cash to the
Treasurer's Report and providing trend information on cash
balances.
It was agreed upon by the Board to remove the oldest historical
year and report two full years in addition to the current year,
with no changes to distribution of cash and investments.
Page 9: Mr. Falconer advised that page 9 is a six-month
cash flow and also supports the statement on page 2 of the
Treasurer's report, which states "I hereby certify that sufficient
investment liquidity and anticipated revenues are available to
meet the pools expenditure requirements for the next six
months."
Board Member Moulin suggested that in lieu of the year-to-date
actual, that staff compare the recent months to the actual
forecast.
It was agreed upon by the Board that based on Board Member
Moulin's request that staff provide information for comparing
forecasts to actual receipts. This would result in three
additional columns in the six-month cash flow forecast report.
Page 10: Mr. Falconer advised of the history of page 10 and
further advised that this page could be eliminated from the
Treasurer's Report.
The Board concurred with staff to eliminate page 10 from the
Treasurer's Report.
Page 11: Mr. Falconer advised that the discontinuation of
the six-month T-Bill as the City's benchmark on page 11 was
due to numerous discussions with Board Member Moulin; it was
also decided that staff would use other financial indicators
giving readers an opportunity to compare yield in the portfolio
and other financial information.
3
Board Member Daniel suggested that staff eliminate two years
of historical information.
Chairman Ross stated that he felt that page was useful in
helping the City Council review the last eight years of the
current interest trends and suggested that the historical
information 'remain.
It was agreed upon by the Board that staff add a two-year rate
beginning July 2008.
In response to Chairman Ross, Mr. Falconer advised that page 4
of the Treasurer's Report was the page in question by
Councilmember Osborne concerning benchmarks.
Page 12: Mr. Falconer advised of the history of page 12 and
also advised that this page was not required.
It was agreed upon by the Board that staff add the two year
rate to the graph.
MOTION - It was moved by Board Members Deniel/Rassi to
approve the suggested changes and continue the discussion of
the Fiscal Year 2008/2009 Work Plan to the February meeting.
In response to Chairman Ross, Mr. Falconer advised that Board
members Rassi and Daniel's terms expire in June of 2009.
In response to Chairman Ross, Mr. Falconer advised that the
City Clerk's office will send out a request for application for
upcoming vacancies on the Board in May, and in June a special
Council meeting is scheduled to interview applicants.
Board Member Moulin advised the Board of the history of the
City's Ordinance Section 2.80 and further advised that he had
no additional changes at this time.
Board Member Denial suggested that item be added to next
month's agenda due to time constraints.
Board Member Rassi stated that he felt the ordinance did not
require any changes and/or modifications at this time.
2
Mr. Falconer advised that there was a brief discussion on the
background.
Board Member Moulin referenced his handout and the
suggested language for the Board's consideration.
Mr. Falconer advised that staff would review past agendas to
ensure the correct language previously discussed and present at
the next scheduled meeting.
Board Member Moulin stated that he had handouts from
previous meetings regarding the discussion of the ordinance
that he would bring to the next scheduled meeting.
Chairman Ross stated that to his recollection there were
previous discussions in reference to "staggering terms," the
wording for investment background, (i.e. securities background
vs. real estate investment).
MOTION - It was moved by Board Members Deniel/Park to
continue the discussion of the Board member ordinance to the
next scheduled meeting.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
December
Mr. Falconer advised that on page 9, the LAIF rate in December
ended at 2.17% with a continuing decline, with the portfolio at
$62 billion and with a large percentage invested in loans, which
is further discussed in the attached commentary from the State.
General discussed ensued by the Board regarding the State's
commentary and its current financial issues.
Noted and Filed
S. Pooled Money Investment Board Reports - October 2008
Noted and Filed
VII BOARD MEMBER ITEMS
G
Board Member Deniel stated that she felt during the joint meeting with
City Council that Council was disappointed with the audit report and
felt that the audit report did not contain enough substance, and there
were no specifics directed to the City of La Quinta. Board Member
Daniel advised that she contacted the audit firm to advise them of
Council's sentiments and requested that Mr. Falconer follow-up with
the management partner to reiterate Council's sentiments.
Mr. Falconer advised that he had previous conversations with the
Mayor regarding the audit report and advised him that the letter is
prescribed by the AIPCA and the firm cannot deviate from their
guidelines.
Mr. Falconer stated that he had spoken to the audit partner after the
presentation of the audited financial statements on ways to enhance
future presentations of the audit results.
General discussion ensued by the Board regarding the audit report, and
the current and previous audit firm.
Board Member Daniel advised the Board of her recent phone
conversation with Mayor Adolph and his request of the Board to help
or give some direction to help City residences avoid foreclosures.
General discussion ensued by the Board regarding help with
foreclosures. It was the conclusion of the Board that this was not
a function of the Board but if members of the Board would like to offer
services or make any suggestions to City Council or the Mayor,
it would be done outside the realm of the Investment Advisory Board.
Vill ADJOURNMENT
MOTION - It was moved by Board Members Rassi/Park to adjourn the
meeting at 6:21 p.m. Motion carried unanimously.
Vianka Orrantia,
Senior Secretary
IJ
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: February 11, 2009
ITEM TITLE -
Transmittal of Treasury Report
for December 31, 2008
BACKGROUND:
Attached please find the Treasury Report December 31, 2008
At the January meeting, staff was asked to update the six-month cash flow sheet
(page 7) by adding three columns to compare the forecast to actual amounts of
revenues and expenditures. Staff is still in the process of working on this project
and plan to present the information in the January Treasurer's Report.
RECOMMENDATION:
Review, Receive and File the Treasury Report for December 31, 2008
John M. Falconer, Finance Director
�t�p 4lwQU&rw
MEMORANDUM
TO. La Quinta City Council
FROM John M. Falconer, Finance Director/rreasurer
SUBJECT Treasurer's Report for December 31, 2008
DATE January 30, 2009
Attached is the Treasurer's Report for the month ending December 31, 2008. 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
Entlin
Chan a
LAIF
46,987,947
4,700,000
(3,250,000)
(1)
48,437,946
1,449,999
US Treasuries (2)
63,771,361
59,000,000
(24,000,000)
(35.923)
25,042
98,735,438
10.436,930
34,964,077
(26,474,958)
US Gov't Sponsored Enterprises (2)
36,911,888
(26,500,000)
5,824
0
(6,994,176)
Commercial Paper (2)
6,994,176
(7,000,000)
965
4,990,591
965
Corporate Notes
Mutual Funds
4,989,626
909979
1
1
3,11 Q089
3,019,109
0
90,979
Subtotal
$ 159,604,734
$ 63,700,001
$ 63,860,089
$ 3,015,016
$ 162,600,905
$ 2,854,928
Cash 3 141,243 1 821,374 0 962,617 821,374
Total $ 159,463,491 $ 63,700.001 $ 64,681,463 $ 3,015,016 $ 161,638,288 $ 2,033,554
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.
?j-Ck4j`l, M
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.
2
Treasurer's Commentary
For the Month of December 2008
Cash Balances - The portfolio size increased by $2 million. The major reason for the increase
was a $4.2 million deposit that staff requested for the new Ave 52 fire station and a
$626,000 purchase of land along Dune Palms Road.
Investment Activity - The average maturity of the portfolio increased by 52 days to 116 days
at the end of December. The Treasurer follows a buy and hold investment policy and has not
sold investments before maturity to take advantage of market conditions. Maturing
commercial paper and Agency Paper was replaced with U.S. Treasury Bills with December
having eight (8) maturing investments. The sweep account earned $45 in interest income for
the month of December and the bank fees for the month were $ 1,577 which resulted in a
net decrease of $ 1,532 in real savings.
Portfolio Performance - The overall portfolio performance decreased by ninety four (94) basis
points from the prior month and ended , at 1.42% for the month, with the pooled cash
investments yielding 1.60%. The portfolio yield will continue to decrease because of market
conditions and the treasurer's decision to limit reinvestments in U.S. Treasury securities due
to the credit crisis. With the average maturity of 116 days, the portfolio yield should continue
to drop downward based upon reinvestments at lower rates. The Treasurer has several longer
term investments helping to keep yields higher as interest rates but they will gradually mature
and result in a lower yield. At this time last year, the portfolio was yielding 4.45% which
reflects the current interest rate environment.
Future Thoughts
Due to the current liquidity crisis -impacting financial and business institutions the Treasurer is
concentrating on safety first and foremost. In the short term, the Treasurer will be
maintaining LAIF balances at the maximum allowable percentage because its rate declines
slower in a declining rate environment. The Treasurer will not be investing in corporate notes,
commercial paper or GSE's due to the current economic conditions affecting the financial
markets; but instead will be investing in short term (less than one year) U.S. Treasury Bills.
Bond proceeds will be laddered in three- and six-month Treasury bills as they mature.
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City of La Ounce
Comparative Rates of Interest
December 31, 2008
Year
MOMh
FY 02103
July 2002
August 2002
SepT2002
002002
Nov 2002
Dec 2002
Jan 2003
Feb 2003
Mar2003
Apr2003
May 2003
June2003
FY 03/O4
July 2003
Augus1200!
Sept 2003
Oct 2003
Nov 2003
Dec 2003
Jan 2004
Feb 2004
Maf2DO4
Apr2004
May 2004
June 2004
F Y 04/05
July 2004
August2004
Sept 2004
Cart 2004
Nov 2004
Dec 2004
Jan 2005
Feb2005
Mat 2005
Apr2005
May2005
June 2005
FY OWES
Ju1y2005
A.gus12005
Sept 2005
Oct 2005
Nov 2005
Dec 2005
Jan 20M
Feb 2006
Mar2006
Apr2006
May 2006
June 2096
FY 06107
July 2006
Auqust200E
Sept2006
002006
Nov 20M
Dec 2006
Jan 2007
Feb 2007
Mar2007
Apr2007
May 2007
June 2007
FY 07108
July 2007
August 2007
Sept2007
002007
Nov 2007
Dec 2007
Jan 2008
Feb 2008
Mar2008
Apr2008
May 2008
June 2008
FY 08/09
July 2008
August 200E
Sep12008
Oct 2008
Nov 2008
Dec 2008
Jan 2009
Feb 2009
Mar2009
Apr2009
May 2009
June 2009
CM of" Oumta
Annuatizer Gamin
Posner Cash
I Fiscal Actiol
Overall
2 46%
1 00%
2 05%
2 45%
1 27%
2 07%
246%
126%
210%
241%
100%
208%
232%
100%
202%
223%
100%
180%
211%
080%
162%
1 99%
0 59%
1 74%
201%
075%
178%
198%
072%
176%
186%
073%
154%
173%
049%
140%
166%
052%
143%
1 65%
0 46%
1 35%
165%
049%
126%
159%
048%
136%
164%
048%
138%
167%
057%
141%
158%
030%
137%
1 65%
0 30%
1 38%
160%
050%
133%
150%
050%
133%
164%
050%
136%
169%
0.47%
162%
173%
0 N%
1 68%
173%
O N%
1 57%
179%
107%
168%
179%
114%
172%
179%
143%
173%
189%
223%
208%
200%
225%
212%
216%
226%
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11
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: February 11, 2009
ITEM TITLE:
Continued Consideration of the Fiscal Year 2008/09 Investment Policy
BACKGROUND:
The Investment Advisory Board has been reviewing the Investment Policy for final
recommendation to the City Council in June 2009. The Investment Policy is
attached for the Board's review.
RECOMMENDATION:
Continued review of the Investment Policy for approval by City Council in June
2009.
John M. Falconer, Finance Director
NOTE: Please bring the attachments from last months meeting for this item.
--- ...r v IIf IMVWwI
Don's Changes to IP 2008-9
Certain revisions of the City's Ordinance Section 2.70 have been marked in the draft
IP. The IAB can only suggest that the CC adopt changes. But if the LAB is initiating
change, consider the following modifications to Section 2.70.010
Oualifications of the members of the board:
Current ordinance: C. Background in the investment field and/or related experience
is preferred.
Comment. The sentence above has carried over without change from the IP for
1998-99 despite its inadequacy. At minimum, the word "securities" should modify
"investment". It needs more than that. I recommend that C be changed to the
following:
Revised: Applicants for the board should have a background in finance, preferably
with knowledge and/or experience in markets, controls and accounting for securities.
Terms of service and their expiration
Background: The 1988 version of 2.70 specified two-year terms of service with
staggered expiration dates. In 1998, the board consisted of seven members. The CC
lengthened the terms to three years, and shortly thereafter, reduced the board to five
members. The term of service and the need to stagger the expiration of terms were
removed from Section 2.70.
Comment: Continuity of members of the board. is important The CC has appointed
as many as four members in a year, some from resignation, move, conflict of interest
and other reasons. The CC has appointed all successors to three-year terns without
regard for the expiration of the term of their predecessor. To promote continuity, the
CC should return to staggered terns for members of the LAB.
New: E. To promote continuity, the expiration of the three-year terms of the
members of the board shall be staggered.
Additional suggested language: The term of service is three years with one or two terms
expiring each year.
Don's Changes to IP 2008-9
Certain revisions of the City's Ordinance Section 2.70 have been marked in the draft
IP. The LAB can only suggest that the CC adopt changes. But if the IAB is initiating
change, consider the following modifications to Section 2.70.010
Oualifications of the members of the board:
Current ordinance: C. Background in the investment field and/or related experience
is preferred.
Comment. The sentence above has carried over without change from the IP for
1999-99 despite its inadequacy. At minimum, the word "securities" should modify
"investment". It needs more than that. I recommend that C be changed to the
following:
Revised: Applicants for the board should have a background in finance, preferably
with knowledge and/or experience in markets, controls and accounting for securities.
Terms of service and their expiration
Background: The 1988 version of 2.70 specified two-year terms of service with
staggered expiration dates. In 1998, the board consisted of seven members. The CC
lengthened the terms to three years, and shortly thereafter, reduced the board to five
members. The term of service and the need to stagger the expiration of terms were
removed from Section 2.70.
Comment: Continuity of members of the board. is important The CC has appointed
as many as four members in a year, some from resignation, move, conflict of interest
and other reasons. The CC has appointed all successors to three-year terms without
regard for the expiration of the term of their predecessor. To promote continuity, the
CC should return to staggered terms for members of the IAB.
New: E. To promote continuity, the expiration of the three-year terms of the
members of the board shall be staggered.
(IAB Meeting of July 9, 2008)
4 a6sl. as
IS WOKING FOR NEW
COhOMSION blEM[BERS
The City of La Cuinta is seeking Interested citizens
to fill vacancies on the following ComnLssions and
Boards. Myou are a resident of the City of La Cuirnte and
a registered voter who would fife to serve your commu-
nity, the positions involve the following:
AmhRocfual S landscape Review Committee —
A three -member committee that considers proposed
structures and/or landscape design and makes recom-
mendations to the PlarWng Commission. Expertise In
the areas of amMacture or landscape architecture is
desirable. (1 pod"
Cons m nily Services Commission — A five-mern-
bar commission that analyzes community services Pro -
grants, fees, and operations of parks and recreation
facilities; reviews park maintenance standards, Perk
master plans, and proposes recreation and social pro-
gramsHlstorieasPre =pion Commission — A five -
member commission composed of flues members cho-
son from among professionals in the discipline of ardtl-
lecture, tdstory, architectural history. planning, or other
historic preservation -related disciplines. Two commis-
sioners are lay members who have demonstrated spe-
cial Interest competence, experience or knowledge In
historic preservation, American studies. cultural anthro-
pology. cultural geography or other historic preserva-
gon-related disciplines. (2 professional positions)•
horeat ment Advisory Board — A five -mambo
Board that advises the City Council on matters deairig
with the City's Investments. and reviews the monthly
Treasurers repots and the Cfty's annual Investment pol-
I y statement The Board also makes recommendations
for changes In policies and procedures and the selection
of providers of Investment services. A background In
finance, prefers* in markets, controls and accounting
for securities. Is preferred. (2 posrdons)
planning Commission —,A five -member commis^
sion serving as an advisory body to the City Council
regarding developing and maintaining the City's general
development of specl8c plarfs, and now development applications, design
simlar Plsnnig
duties. (2 positions)
Interested members of the pubic may contact
the City Clerks Department at (760) 777-7103
for an official application and additional informa-
tion. Applications can be downloaded at
wwwla-quinta.org. The deadline for submitting
applications Is Friday, May 18, 2007 at 5.00 PM.
The City Council is expected to consider appfi-
caions, interview candidates, end make their
selections at their regular meeting to be held on
June 5, 2007.
(IAB Meeting of July 9, 2008)
Don's Changes to IP 2008-9
Certain revisions of the City's Ordinance Section 2.70 have been marked in the draft
IP. The IAB can only suggest that the CC adopt changes. But if the IAB is initiating
change, consider the following modifications to Section 2.70.010
Qualifications of the members of the board:
Current ordinance: C. Background in the investment field and/or related experience
is preferred.
Comment. The sentence above has carried over without change from the IP for
1998-99 despite its inadequacy. At minimum, the word "securities" should modify
"investment". It needs more than that. I recommend that C be changed to the
following:
Revised: Applicants for the board should have a background in finance, preferably
with knowledge and/or experience in markets, controls and accounting for securities.
Terms of service and their expiration
Background: The 1988 version of 2.70 specified two-year terms of service with
staggered expiration dates. In 1998, the board consisted of seven members. The CC
lengthened the terms to three years, and shortly thereafter, reduced the board to five
members. The term of service and the need to stagger the expiration of terms were
removed from Section 2.70.
Comment: Continuity of members of the board. is important The CC has appointed
as many as four members in a year, some from resignation, move, conflict of interest
and other reasons. The CC has appointed all successors to three-year terms without
regard for the expiration of the term of their predecessor. To promote continuity, the
CC should return to staggered terms for members of the IAB.
New: E. To promote continuity, the expiration of the three-year terms of the
members of the board shall be staggered.
(IAB Meeting of June 11, 2008)
Appendix B
City of La Quinta Municipal Code
Chapter 2.70
INVESTMENT ADVISORY BOARD PROVISIONS
Sections:
2.70.010 General Rules Regarding Appointment.
2.70.020 Board meetings.
2.70.030 Board functions.
2.70.010 General rules regarding appointment
A. Except as set out below, see Chapter 2.06 for General Provisions.
B. The Investment Advisory Board (the "board") is a standing board composed of five (5)
members from the public that are appointed by city council.
C. Background in the investment field and/or related experience is preferred. Background
information will be requested and potential candidates must agree to a background check and
verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at
any time if a change in circumstances warrants, each board member will provide the City Council
with a disclosure statement which identifies any matters that have a bearing on the
appropriateness of that member's service on the board. Such matters may include, but are not
limited to, changes in employment, changes in residence, or changes in clients.
2.70.020 Board meetings.
The Board usually will meet monthly, but this schedule may be extended to quarterly
meetings upon the concurrence of the Board and the City Council. The specific meeting dates will
be determined by the Board Members and meetings may be called for on an as needed basis.
2.70.030 Board functions.
A. The principal functions of the Board are: (1) review at least annually the City's Investment
Policy and recommend appropriate changes; (2) review monthly Treasury Report and note
compliance with the Investment Policy and adequacy of cash and investments for anticipated
obligations; (3) receive and consider other reports provided by the City Treasurer; (4) meet with
the independent auditor after completion of the annual audit of the City's financial statements, and
receive and consider the auditor's comments on auditing procedures, internal controls, and findings
for cash and investment activities, and; (5) serve as a resource for the City Treasurer on matters
such as proposed investments, internal controls, use or change of financial institutions, custodians,
brokers and dealers.
B. The Board will report to the City Council after each meeting either in person or through
correspondence at a regular City Council meeting.
19
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections
53607 and 53608 of the Government Code, the authority to invest and reinvest
moneys of the city, to sell or exchange securities, and to deposit them and provide for
their safekeeping, is delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to purchase, at their original sale or after they have been issued, securities
which are permissible investments under any provision of state law relating to the
investing of general city funds, including but not limited to Sections 53601 and 53635 of
the Government Code, as said sections now read or may hereafter be amended, from
moneys in his custody which are not required for the immediate necessities of the city
and as he may deem wise and expedient, and to sell or exchange for other eligible
securities and reinvest the proceeds of the securities so purchased. (Ord. 2 § 1 (part),
1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be
applied to the purchase for which the original purchase money may have been designated
or placed in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be canceled
either in satisfaction of sinking fund obligations or otherwise if proper and appropriate;
provided, however, that the bonds may be held uncancelled and while so held may be
resold. (Ord. 2 § 1 (part), 1982)
081
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments
made pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is
authorized to deposit for safekeeping, the securities in which city moneys have been
invested pursuant to this chapter, in any institution or depository authorized by the terms
of any state law, including but not limited to Section 53608 of the Government Code as
it now reads or may hereafter be amended. In accordance with said section, the city
treasurer shall take from the institution or depository a receipt for the securities so
deposited and shall not be responsible for the securities delivered to and receipted for by
the institution or depository until they are withdrawn therefrom by the city treasurer.
(Ord. 2 § 1 (part), 1982
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section
36523 of the Government Code shall be administered by the city treasurer in accordance
with Section 36523 and 26524 of the Government code and any other applicable
provisions of law. (Ord. 2 § 1 (part), 1982)
21
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: February 11, 2009
TITLE:
California Municipal Treasurer's Conference — Palm Springs, CA
April 22-24, 2009
BACKGROUND:
Each year the City budgets funds for the Treasurer and two Investment Advisory Board
members to attend the Treasurer's Conference. Due to the conference location in
Palm Springs, there are adequate funds available for the registration for each Board
member to attend this year's conference.
Staff is requesting the names of those interested in attending be given by March 1 st,
in order to take advantage of the discounted registration deadline which is $305.00.
RECOMMENDATION:
Select up to five Board members to attend the Treasurer's Conference.
y4A- t-� Yjzo��
John M. Falconer, Finance Director
Wednesday, April 22
Conference Opening Session
9:1 S a.m.
LEADING UPINA DOWN ECONOMY, Dr. Kevin Freiberg
U.S. and world markets are in a panic. Lately, we wake up and go to bed inundated with
gloomy news about current economic conditions. Panic sets off a chain reaction, and the
situation intensifies. Times are tough, budgets are tight, and people are anxious. So, how
do we begin to get our arms around this crisis psychologically and motivate others to do
the same? How do we move toward a solution that protects our well-being since the
current threat is doing just the opposite? Gutsy leaders are game changers; they redefine
the game, the field, the rules, and even the competition. Game changers defy mediocrity,
declare war on complacency, explore the uncharted, risk the unthinkable, and do the
unconventional. There are ten things you can do to lead yourself and your people
through these tough times. Be a game changer and practice these ten strategies ... your
future depends on it!
12:00p.m. Luncheon
Outlook for 2009, Ivan Hrazdira, Managing Director UBS Financial Services
Ivan Hrazdira, a foremost expert on the U.S. Economy and the direction Government
Sponsored Enterprises (Agencies) will share his outlook for 2009 and what the Obama
Administration may be planning to do with GSE's in the near future.
1:30 p.m.
The new landscape of Liquidity Management
Deborah A. Cunningham, CFA, Chief Investment Officer for Taxable Money
Markets
Not long ago money market portfolios were thought to be simple products, immune to
forces that could roil the American economy and financial markets. In fact, cash was
widely considered to be a "plain vanilla" asset class, one frequently viewed as low -
maintenance and risk -free. The events of the last year have driven home the message that
money market portfolios are complex products that demand diligent credit work, an
understanding of the macros that drive the market as well as the scale to create an interest
rate responsive structure that provides for optimal liquidity.
2:30 p.m.
Monitoring your Investments and Credit Ratings Before and After the Sale!
Kay Chandler, President & CEO Chandler Asset Management
Use available tools to evaluate your investment selections and credit rating to assist you
before you make the decision to bring into your portfolio and just as important what steps
are necessary to monitor your investment selections after the sale.
as a � as to as as ' •a
Concurrent Sessions
3:30 p.m.
Get The Most Value From Your Broker — Dealer Relationship
Susan M. Munson, Managing Director Main Street Capital Advisors
Rick Phillips, President and Chief Investment Officer, Main Street Capital
Advisors
Drawing upon experiences from both the buy and sell sides insights will be shared that
will help investment officers obtain the most value from their Broker Dealer
relationships, which, in turn, can enhance the performance of the investment portfolios.
Sometimes the relationship between an investment officer and their broker -dealer
coverage can be adversarial. With the continued restructuring and trauma "on the street"
the dynamics are bound to become even more interesting. There are ways to develop a
win -win relationship with your Broker -Dealer coverage and tips will be shared to show
you how.
3:30 p.m.
Special Financing Toolbox — A how to on Delinquencies, Judicial Foreclosures,
Bond Workouts
Tim Seufert, Managing Director NBS Local Government Solutions
Examine the latest trends, information, legislative updates, how to prepare for higher
delinquency rates, successful strategies for the collection of delinquent installments and
corresponding judicial foreclosure proceedings. Learn insight and tools that can be
implemented for due diligence and compliance with foreclosure covenants and potential
bond workouts. Don't let your Special Assessment and Tax Districts be at risk
Thursday, April 23
7.•30 a.m.
Business Session (Plated Breakfast)
All conference attendees will enjoy breakfast with their CMTA colleagues during the
Annual Business Meeting. Note: please plan on having at least one individual from
your agency attend this meeting as voting will take place, thank you.
8:45 a.m.
A New Era in Credit Card Acceptance for Municipalities
Jim Reed Vice President MasterCard Public Sector Division
Jim Plunkett, Nationwide Payment Solutions
Significant changes have occurred over the last year with respect to credit card
acceptance in public agency offices. Jim Reed from MasterCard's Public Sector Division
is largely considered to be the catalyst for the "tipping point" that resulted in
municipalities now being able to accept credit cards in their offices without having to
ConferenceProgram Sessions cont
deal with the transaction costs. Jim will discuss what transpired within the MasterCard
organization to allow this breakthrough and will also detail the nuances of MasterCard's
leading edge program. Nationwide Payment Solutions has emerged as a leading
authority on the new programs which also include changes in convenience fee programs
from Visa and American Express. Also discussed will be the political, technical and
economic issues municipalities face when they decide to consider implementing a
convenience fee program.
9:50 a.m.
How to Limit Volatility in Today's Turbulent Markets
Craig I. Dismuke, Senior Vice President Strategies Vining -Sparks IBG
Investors today have been focused on the safety and soundness of various investment
types. Are investors are responding to fear right now more than opportunism. The
questions have obviously centered on Fannie and Freddie, with a few about the FHLB
system. How deep is the fear and is it really pervasive through all investment
sectors/sub-sectors. What about relative value which are typical for all markets — though
the answers have changed dramatically lately. From a macro perspective the general
question has been, "Where can I invest money that provides me safety of principal,
predictable cash flows, and reasonable liquidity". Yield has become an afterthought the
days and learn how to limit volatility in today's turbulent markets.
11: 00 a.m.
Is Buying Credit worth the Risk
Ben Finkelstein CFA, Senior Managing Director Stanford Group
Rick Phillips, President and Chief Investment Officer, Main Street Capital
Advisors
Have corporate securities been worth the risks for municipalities? What does the future
hold for this asset class? What have we learned about the recent turmoil in the
commercial paper and corporate note markets and discuss the unique challenges
municipalities face when assuming credit risk. The yield advantage of corporate bonds to
treasury and agency securities will also be addressed and the risks and rewards associated
with corporate bond investments.
12:00 p.m.
Looking Beyond the Malaise
Girard Miller, Senior Strategist PFM Group
Girard Miller will provide us with his insights on the housing slump, falling dollar,
credit "squeeze", energy and other commodity price swings have created the most
challenging operating environment for businesses, consumers and local government
investors since the great depression!
Concurrent Sessions
2:00 p.m.
Identity Theft: What Local Governments must do to comply with the FTC's Red
Flag Rules
Joanna Smith Esq., Associate Myers Nave
Meishya Yang Esq., Deputy City Attorney City of Santa Monica
On May 1, 2009 new rules will go into effect requiring certain entities to design and
implement a written identity theft program. Learn about the Red Flag rules and what is
important to have in your program; "Identify, Detect, Respond & Update", civil penalties
and a State action can be assessed for each violation if an entity fails to properly establish
an effective program.
2:00 p.m.
Duration Finding Your Sweet Spot
Ben Finkelstein CFA, Senior Managing Director Stanford Group
Learn the fundamental concepts underlying duration and its importance in managing
interest rate risk. By using duration public funds can determine the ideal maturity for its
investment portfolio. Given that many public agencies hold callable or optional
securities, duration is an essential tool for managing interest rate risk.
2: 00 p. m.
CDARS — The Mystery Revealed a New Tool in the Investment Toolbox
Reginald L. (Rep) Truman Regional Director Promontory Interfinancial
Network
Warren A. Bloom, Regional Director Promontory Interfinancial Network
Learn about the newest product that is now available to public agencies. Banks are now
offering CDARS to attract large deposits from public agencies as an investment
alternative to other fixed income products. With CDARS, customers manage one bank
relationship, earn one rate on their entire investment, and receive one account statement.
This can save the investor from entering into multiple rate negotiations and manually
consolidating account statements and when funds are fully insured, depositors no longer
have to track collateral values.
3:1 S p. m.
Nuts & Bolts
This is an opportunity for Government Associates and Commercial Associates to meet
independently to ask questions and have your questions answered by your colleagues.
C .__ nce Program Sessions con . ed
4.00 p.m.
Nuts & Bolts, Combined Wrap-up
This is the time for the Government and Commercial Associates to meet as a group and
discuss common issues.
Friday, April 24
9:00 a.m.
Fraud Issues in Local Government
Justin Williams CPA, Certified Fraud Examiner Mann Urrutia & Nelson CPA
Hear the latest on fraud prevention and the factors and conditions that foster it in the
workplace. Learn about the factors that influence a person to commit fraud and the types
of fraud that commonly occur in the workplace. Hear how computer and paper fraud has
occurred in many local agencies. Learn how to prevent losses by becoming informed
about the latest fraud schemes and white collar crimes.
10:00 a.m.
Municipal Bonds — Market Update for Issuers and Buyers
Although allowable by California State Code, few municipal entities have purchased
municipal bond investments for their investment portfolios. An uncertain credit market
last year has prompted more entities to consider investments in this asset class, focusing
primarily on short and intermediate term securities in both the taxable and tax-exempt
arena. Municipals bonds are fast becoming an investment option suitable for some
portfolios. In addition, hear a comprehensive municipal bond market update.
11:00 a.m.
State Budget Outlook
Michael Cohen, Director of Administration, Legislative Analyst's Office
The Director of State Administration from the Legislative Analyst's Office provides an
update on the State's financial outlook for the coming year, the latest on any proposed
State reductions in local government revenues and insight into the Governor's and
Legislature's 2009-2010 plan to balance the massive budget deficit!
INVESTMENT ADVISORY BOARD Correspondence & Written
Material Item A
Meeting Date: February 11, 2009
TITLE:
Month End Cash Report for January 2009 and
Other selected Financial Data
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.
M. Falconer, Finance Director
Bill Lockyer, State Treasurer _
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
SAVE THE DATE: LAIF ANNUAL CONFERENCE, OCTOBER 21-22, 2009
PMIA Performance Report
Date
iidYy .
Yield
Quarterto
Valle Yield
Average
Maturity
in days)
1/14/2009
2.05
2.12
226
1/15/2009
2.03
2.12
225
1/16/2009
2.02
2.11
224
1/17/2009
2.02
2.11
224
1/18/2009
2.021
2.10
224
1/19/2009
2.021
2.10
224
1/20/2009
2.021
2.10
219
1/21/2009
2.001
2.09
226
1/22/2009
1.97
2.08
224
1/23/2009
1.95
2.08
224
1/24/2009
1.95
2.07
224
1/25/2009
1.95
2.07
224
1/26/2009
1.95
2.061
220
1/27/2009
1.96
2.061
221
Corporate
0.510,
Commerc
3.0
LAIF Performance Report
Quarter ending 12/31/2008
Apportionment Rate: 2.54%
Earnings Ratio: 0.00006948964923038
Fair Value Factor: 1.003013411
PMIA Average Monthly Effective Yields
Dec 2008 2.353%
Nov 2008 2.568%
Oct 2008 2.709%
Pooled Money Investment Account
Portfolio Composition
$63.3 Billion
12/31 /08
Treasuries
i ime ueposns CDs/BNs
13.03% 6.24%
Mortgages
1.69%
Agencies
23.79%
2
Keceni 15111 AUCIlon ICesuits
Home , Institutional , Announcements, Data & Results , Latest Auction Data , Recent Bill Auction Results
Recent Bill Auction Results
Security
Issue
Maturity
Discount
Investment
Price
CUSIP
Term
Date
Date
Rate %
Rate %
Per $100
13-WEEK
02-05-2009
05-07-2009
0.270
0.274
99.931750
91279504
26-WEEK
02-05-2009
08-06-2009
0.390
0.396
99,802833
912795N56
4-WEEK
01-29-2009
02-26-2009
0.040
0.041
99.996889
912795K59
70-DAY
01-29-2009
04-09-2009
0.200
0.203
99.961111
9127951-33
13-WEEK
01-29-2009
04-30-2009
0.150
0.152
99.962083
912795166
26-WEEK
01-29-2009
07-30-2009
0.345
0.350
99.825583
91279SQ95
4-WEEK
01-22-2009
02-19-2009
0.030
0.030
99.997667
9127951<42
70-DAY
01-22-2009
04-02-2009
0.100
0.101
99.980556
9127951_25
13-WEEK
01-22-2009
04-23-2009
0.140
0.142
99.964611
9127951-58
26-WEEK
01-22-2009
07-23-2009
0.320
0.325
99.838222
912795N31
4-WEEK
01-15-2009
02-12-2009
0.020
0.020
99.998444
912795K34
56-DAY
01-15-2009
03-12-2009
0.085
0.086
99.986778
912795K75
13-WEEK
01-15-2009
04-16-2009
0.120
0.122
99.969667
912795141
26-WEEK
01-15-2009
07-16-2009
0.290
0.294
99.853389
912795N23
52-WEEK
01-15-2009
01-14-2010
0.430
0.437
99.565222
91279SR86
4-WEEK
01-08-2009
02-05-2009
0.060
0.061
99.995333
912795K26
70-DAY
01-08-2009
03-19-2009
0.100
0.101
99.980556
912795K83
13-WEEK
01-08-2009
04-09-2009
0.150
0.152
99.962083
9127951-33
26-WEEK
01-08-2009
07-09-2009
0.320
0.325
99.838222
912795M99
4-WEEK
01-02-2009
01-29-2009
0.030
0.030
99.997750
912795193
62-DAY
01-02-2009
03-05-2009
0.140
0.142
99,975889
912795K67
13-WEEK
01-02-2009
04-02-2009
0.050
0.051
99.987500
9127951-25
26-WEEK
01-02-2009
07-02-2009
0.250
0.254
99.874306
912795Q87
4-WEEK
12-26-2008
01-22-2009
0.000
0.000
100.000000
91279SJ85
13-WEEK
12-26-2008
03-26-2009
0.040
0.041
99.990000
912795K91
26-WEEK
12-26-2008
06-25-2009
0.285
0.289
99.856708
912795M65
4-WEEK
12-18-2008
01-15-2009
0.000
0.000
100.000000
912795377
13-WEEK
12-18-2008
03-19-2009
0.050
0.051
99.987361
9127951<83
26-WEEK
12-18-2008
06-18-2009
0.270
0.274
99.863500
912795M57
52-WEEK
12-18-2008
12-17-2009
0.590
0.601
99.403444
912795569
4-WEEK
12-11-2008
01-08-2009
0.000
0.000
100.000000
912795369
l3-WEEK
12-11-2008
03-12-2009
0.005
0.005
99.998736
912795K75
26-WEEK
12-11-2008
06-11-2009
0.300
0.305
99.848333
91279SM40
278-DAY
12-11-2008
09-15-2009
0.390
0.396
99.698833
912795V81
4-WEEK
12-04-2008
01-02-2009
0.040
0.041
99.996778
912795J51
13-WEEK
12-04-2008
03-05-2009
0.050
0.051
99.987361
912795K67
26-WEEK
12-04-2008
06-04-2009
0.430
0.437
99.782611
912795Q79
4-WEEK
11-28-2008
12-26-2008
0.050
0.051
99.996111
912795144
13-WEEK
11-28-2008
02-26-2009
0.150
0.152
99,962500
912795KS9
26-WEEK
11-28-2008
05-28-2009
0.490
0.498
99,753639
91279SM24
Effective with the 11/2/98 auction, all bills are auctioned using the single -priced method.
Freedom_ of Information Act I Law & Guidance I Privacy & Legal Notices I Webste Terms & Condition
U.S Department of the Treasury, Bureau of the Public Debt
http://www.treasurydirect.gov/RI/OFBills 2/2/2009 3
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mob-
Federal Reserve Statistical Release
H.15
Selected Interest Rates (Daily)
' lklp to Content
Release Date: January 30, 2009
Weekly release dates I historical data I Data Download Program (DDP) I About I Announcements
Daily update Other formats: Screen reader I ASCII
� _ '- r{ i�[I I}aLa DtYWi3148d
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
January
30,
2009
2009
2009
2009
2009
Instruments
Jan
Jan
Jan
Jan
26
27
28
29
Federal funds (effective) 1 2 3
0.19
0.18
0.19
0.23
Commercial Paper 3 4 5 6
Nonfinancial
1-month
0.21
0.19
0.16
0.24
2-month
0.24
0.29
0.31
0.27
3-month
n.a.
0.42
0.42
0.35
Financial
1-month
0.47
0.29
0.31
0.40
2-month
1.00
0.90
0.94
0.89
3-month
2.15
2.04
2.14
2.21
3-month nonfinancial or financial
posted by CPFF 7
Without surcharge
1.24
1.24
1.22
1.22
With surcharge
2.24
2.24
2.22
2.22
CDs (secondary market) 3 8
1-month
0.43
0.42
0.43
0.43
3-month
1.00
1.08
1.05
1.07
6-month
1.50
1.57
1.57
1.58
Eurodollar deposits (London) 3 9
1-month
0.75
0.75
0.75
0.75
3-month
1.75
1.75
1.50
1.50
6-month
2.30
2.30
2.40
2.40
Bank prime loan 2 3 10
3.25
3.25
3.25
3.25
Discount window primary credit 2 11
0.50
0.50
0.50
0.50
U.S. government securities
Treasury bills (secondary market) 3 4
4-week
0.01
0.05
0.08
0.14
3-month
0.15
0.13
0.19
0.23
6-month
0.34
0.32
0.33
0.35
1-year
0.45
0.45
0.46
0.48
http://www.federalreserve.gov/Releases/HI5/update/ 2/2/2009 5
rl . r .1 J- 0O 1GLOU 111LUJU5L 1\aLVJ, YY GU-VIUY Nally UpUaLc--Ja IUMy Jv1 cvvJ . as., [ v. ,
Treasury constant maturities
Nominal 12
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year
Inflation indexed 13
5-year
7-year
10-year
20-year
Inflation -indexed long-term average
Interest rate swaps 15
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
Corporate bonds
Moody's seasoned
Aaa 16
Baa
State & local bonds 17
Conventional mortgages 18
n.a. Not available.
--------------------------------
Footnotes
0.02
0.05
0.08
0.14
0.14
0.13
0.19
0.23
0.34
0.32
0.33
0.35
0.47
0.47
0.48
0.51
0.85
0.87
0.89
0.95
1.21
1.15
1.22
1.34
1.67
1.59
1.70
1.87
2.09
1.99
2.10
2.28
2.70
2.59
2.71
2.87
3.71
3.57
3.73
3.85
3.39
3.26
3.44
3.57
1.57
1.44
1.45
1.57
1.70
1.57
1.59
1.67
1.92
1.77
1.81
1.83
2.47
2.33
2.46
2.48
14 2.56
2.42
2.53
2.55
1.24
1.21
1.15
1.16
1.51
1.51
1.45
1.48
1.86
1.86
1.79
1.84
2.12
2.13
2.05
2.14
2.31
2.32
2.24
2.33
2.59
2.59
2.50
2.62
2.85
2.84
2.75
2.89
3.21
3.19
3.08
3.25
5.24 5.05 5.20 5.32
8.30 8.06 8.20 8.28
5.16
5.10
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. Financial paper that is insured by the FDIC's Temporary Liquidity Guarantee Pr
excluded from relevant indexes, nor is any financial or nonfinancial commercial p
directly or indirectly affected by one or more of the Federal Reserve's liquidity
the rates published after September 19, 2008, likely reflect the direct or indire
6
http://www.federalreserve.gov/Releases/H15/update/ 2/2/2009
riC,n: rl.I J--3G1UkArU 111MIUbl l aLVG , rvcV-vuay "mac .Y I-, —I-
new temporary programs and, accordingly, likely are not comparable for some purpo
published prior to that period.
7. CPFF refers to the Federal Reserve's Commercial Paper Funding Facility. The ra
under the CPFF for financial and nonfinancial commercial paper. An issuer of comm
the CPFF may avoid the surcharge by providing a collateral arrangement or indorse
acceptable to the Federal Reserve Bank of New York. Source: Federal Reserve Bank
8. An average of dealer bid rates on nationally traded certificates of deposit.
9. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time.
10. 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.
11. The rate charged for discounts made and advances extended under the Federal R
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
12. 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.
13. 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/of£ices/domestic-finance/debt-management/interest-rate/ind
14. Based on the unweighted average bid yields for all TIPS with remaining terms
more than 10 years.
15. 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.
16. 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
17. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Th
18. Contract interest rates on commitments for fixed-rate first mortgages. Source
Market Survey(R) data provided by Freddie Mac.
-------------------------------------------------------------------------'-------
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
http://www.federalreserve.gov/Releases/Hl5/update/ 2/2/2009 7
Atli: HA.)--Nelecteu Interest Kates, weo-vnty rJauy upuaic--daiiUWy OV, �VV7 .611
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 Other formats: Screen reader I ASCII
Statistical releases
Home I Economic research and data
Accessihility I Contact Us
Last update: January 30, 2009
http://www.federalreserve.gov/Releases/H15/update/ 2/2/2009 8
rrcn: \.Utltiiwii:lal rapt , 1 aLGJ uiu
Federal Reserve Release
� • r
Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution
Data Download Program (DDPI
Data as of January 30, 2009
Commercial Paper Rates and Outstanding
Derived from data supplied by The Depository Trust & Clearing Corporation
Posted February 2, 2009
Discount rates
FTerm]nonfinancial
AA
A2/P2
nonfinancial
AAAA
financ►al
as
1-day
0.27
1.33
0.23
0.56
7-day
15-day
0.15
0.17
0.92
2.54
0.18
0.24
0.37
0.70
0.39
0.58
30-day
0.19
1.91
60-day
0.26
2.55
0.94
0.73
90-day
0.36
1.59
2.24
0.79
Yield curve
Money market basis
- - - AA nonfinancial
•••••-••••• A21P2 nonfinancial
AA financial
-------------
1 7 15 30
Days to Maturity
60
Percent
3.5
3.0
l
http://www.federaireserve.gov/releases/cp/ 2/2/2009 9
P": uommerciai raper xaies ana vutstanuings
Discount rate spread
Thinv-day A2/F2 less AA nonfinancial commercial paper (daily)
Basis points
700
600
500
400
300
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008
Discount rate history
S niny-uay Vviu11cia,iat tmFUL kueuay/
— — — AA nanfinmtcia l ,
A2YP2 nwttinancia] tl
2001 2002 2003 2004 2005 2006 2007 2008
Outstandings
Weekly (Wednesday), seasonally adjusted
6
5
4
3
1)
0
http://www.federalreserve.gov/releases/cp/
2/2/2009 10
r": k,umrncruiai raper r aicN aiiu vuw�Mlllgb
Billions of dollars
. age
1190
1090
990
890
790
690
590
490
Billions of dollars
----- Nontmnftinl (right srate)
--.-- Financial (Idt ScatV)
hA,"%Vd 1"t ',A
1
(
i
t ;
}��'l
,J
�.. Y
i
2001 2002 2003 2004 2005 2006 2007 2008
290
250
210
170
130
90
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 ContaetUs
Last update: February 2, 2009
11
http://www.federaireserve.gov/releases/cp/ 1 2/2/2009
City of La Quints
Cash Flow
Budget to Actual
December 31, 2008
Cash Basis
Account
Budget
12/08
Actual
12/08
Accrual /
Adjustment
Adjusted Total
12/08
Variance
Over Under
Notes
Property Tax/ Tax Increment
Transient Occupancy Tax
Sales Tax
Otherrevenues
750,011
531,486
509,738
2,248.142
2,272,651
348,153
566,402
2,225,571
200,793
2,272,681
548,946
566,402
2225,571
1,522,670
17460
56,665
22.571
Property Tax higher man budgeted
Revenues
4,039,376
5,412,807
200,793
5,613,600
1,574,224
Expenditures
Salaries 8 Fringe Benefits
Other expenditures
Subtotal
Redevelopment Agency
Debt Service (Pnnapal/Interest/Pass Through)
Subtotal
Capital Projects
1.003,808
3,128256
968,304
2.969,460=5765","49546
968.304
(35,504)
155,796
Wate¢olors $103k,PM10 Control
for Hoce Clasac$104k
4,132,064
3.937,764
194,300
210.918
396,874
440,732
396,875
229,814
1
607,792
837,607
229,815
575,956
575.956
Total Expenditures
5,315,812
5,351,327
5,351,327
35,515
Net Revenues/Expenditures
(1,276,436)1
61,480
1 200,793
i262,273
1,609,739
12
INVESTMENT ADVISORY BOARD
Meeting Date: February 11, 2009
TITLE:
Pooled Money Investment Board Report
for December 2008
BACKGROUND:
Correspondence
& Written Material Item B
The Pooled Money Investment Board Report for December 2008 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 NOVEMBER 2008 WITH NOVEMBER 2007
(DOLLARS IN THOUSANDS)
NOVEMBER 2008 1 NOVEMBER 2007 CHANGE
Average Daily Portfolio
$ 60,842,357 $
61,562,908 $
-720,551
Accrued Earnings
$ 128,407 $
250,380 $
-121,973
Effective Yield
2.568
4.962
-2.394
Average Life -Month End (In Days) 228 208 +20
Total Security Transactions
Amount
$
16,345,349
$
31,190,986
$
-14,845,637
Number
333
645
-312
Total Time Deposit Transactions
Amount
$
2,552,000
$
4,686,500
$
-2,034,600
Number
107
205
-98
Average Workday Investment Activity
$
1,111,609
$
1,883,026
$
-771,417
Prescribed Demand Account Balances
For Services
$
1,314,741
$
297,352
$
+1,017,389
For Uncollected Funds
$
137,464
$
111,231
$
+26,223
1
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
November 30, 2008
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
6,105,008
9.74
+0.77
Bonds
0
0.00
0
Notes
3,489,068
5.57
+0.09
Strips
0
0.00
0
Total Government
$
9,594,076
16.31
+0.86
Federal Agency Debentures
$
10,350,946
16.52
.0.26
Certificates of Deposit
3,400,008
5.43
-2.74
Bank Notes
0
0.00
-0.47
Bankers'Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
3,489,867
5.57
-2.64
Time Deposits
8,518,000
13.60
+0.02
GNMAs
147
0.00
0.00
Commercial Paper
4,791,358
7.65
+1.02
FHLMC/Remics
1,077,379
1.72
+0.02
Corporate Bonds
333,436
0.63
-0.04
AB 55 Loans
11,845,253
18.91
+0.30
GF Loans
9,349,600
14.92
+3.94
Reversed Repurchases
-98,500
-0.16
+0.01
Total (All Types)
$
62,651,570
100.00
INVESTMENT ACTIVITY
NOVEMBER 2008
OCTOBER 2008
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
333
$ 16,345,349
743
$ 36,406,085
Other
23
1,41l,366
14
312,151
Time Deposits
107
2,552,000
237
6,797,900
Totals
463
$ 20,308,715
994
$ 43,616,136
PMIA Monthly Average Effective Yield
2.668
2.709
Year to Date Yield Last Day of Month
2.726
2.763
2
Pooled Money Investment Account
Portfolio Composition
$62.7 Billion
Loans
33.83%
Corporate Boi
0.53%
Commerc
7.6
11 /30/08
Reverses
-0.16% Treasuries
1X; Ill
Time Deposits 5.43%
13.60%
3
ortgages
1.72%
Agencies
22.09%
BOARD MEMBER ITEMS