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2009 10 07 IABP.O. Box 1504 LA QufuIA, GAIAFORNfA 92247-1504 78-495 CALLP. TAMPICO LA QUINTA, CALIFORNIA 92253 ADJOURNED REGULAR MEETING AGENDA INVESTMENT ADVISORY BOARD Caucus Room 78-495 Calle Tampico- La Quinta, CA 92253 October 7, 2009 - 4:00 P.M. CALL TO ORDER a. Pledge of Allegiance b. Roll Call (760) 777-7000 FAX (760) 777-7101 II PUBLIC COMMENT - (This Is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR Approval of Minutes of Meeting on September 9, 2009 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for August, 2009 B. Continued Discussion of the Investment Advisory Board 2009/10 Work Plan C. IAB Scheduled Meeting of November 111h — City Holiday VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - September 2009 B. Pooled Money Investment Board Report — July 2009 VII BOARD MEMBER ITEMS Vill ADJOURNMENT PUBLIC NOTICES The La Quinta Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the Finance Department at 777-7150, twenty-four (24) 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 Calle Tampico, La Quinta, CA 92253, during normal business hours. INVESTMENT ADVISORY BOARD MEETING September 9, 2009 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:00 p.m. by Chairman Ross, followed by the Pledge of Allegiance. PRESENT: Board Members Moulin, Olander, Ross, Rassi and Park (4:12 p.m.) ABSENT: None. OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior Secretary II. PUBLIC COMMENTS — None. III Confirmation of Agenda Ms. Orrantia requested that an amended copy of page 1 of the July 81h minutes be added to the agenda to reflect Board Member Olander's presence at the July meeting. MOTION - It was moved by Board Members Rassi/Olander to approve the agenda as amended. Motion carried unanimously. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on July 8, 2009 for the Investment Advisory Board. Board Member Moulin requested that the guests present be listed under item one and not item three. Mr. Falconer concurred. General discussion ensued amongst the Board and it was agreed upon by the Board to reflect the guests present in both Items one and three. Board Member Moulin advised that on page 5, Item D, the motion reflects Board Member Deniel, who is no longer with the Board. Chairman Ross asked staff to review the recorded minutes of July 81h and correct the motion accordingly. Chairman Ross requested a correction be made on page 4, Item C, third paragraph, second sentence changing "wok" to "work." MOTION: It was moved Board Members Moulin/Rassi to approve the minutes of July 8, 2009 as amended. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for June and July 2009 Mr. Falconer presented and reviewed the staff report advising the Board that the City's annual audit has been completed. During the review of the audit, the June Treasurer's Report was reviewed and there were no GASB 31 adjustments to the fair market values to report. Mr. Falconer advised that the portfolio declined by $9 million due to the June pass -through payments. In addition, the average portfolio increased by 30 days due to recent purchase of CD's with four local banks and a fifth CD to be purchased in the month of August (which will be reflected in the August Treasurers Report). The recent purchase CD's are reflected on page 5 of the Treasurers Report, along with the activities on page 7. In response to Board Member Moulin, Mr. Falconer advised that the CD's yields were based on what was being offered by the individual bank at that time. General discussion ensued amongst the Board regarding banks and their FDIC limits. In response to Chairman Ross, Mr. Falconer advised that a portion of the audit reports are compiled based on the fiscal agent report received from the bank in addition to information received from the bond trustees, with the bank reconciliation compiled by staff. Mr. Falconer further advised that the City's petty cash is the only asset counted in-house, which was completed in the month of June; and SilverRock's inventory and cash is handled by the City's contractor Landmark Land.. 2 MOTION - It was moved• by Board Members Moulin/Olander to approve, receive and file the Treasury Reports for June and July 2009. Motion carried unanimously. Mr. Falconer advised the Board of his conversation with Board Member Moulin in reference to the cash flow forecast, the dilemma of the state's budget, and its impact to the City's cash flow forecast. Mr. Falconer requested that a verbal discussion be added to Work Plan items regarding this issue. B. FY 2009-2010 Work Plan In response to Board Member Moulin, Mr. Falconer advised that the City Council passed the 2009-2010 Work Plan and they were very complementary to both the Board and staff. General discussion ensued amongst the Board regarding the upcoming fiscal year's work plan and the Board's approach to each item. In response to Board Member Moulin, Mr. Falconer stated that he had no suggestions to a particular money market fund. Mr. Falconer asked the Board for their input and/or suggestions on money market funds and pooled funds in addition to LAIF. In response to Board Member Olander, Mr. Falconer advised that the yields for money market funds will not be higher than those currently in LAIF. General discussion ensued amongst the Board regarding the upcoming LAIF conference scheduled in October. General discussion ensued amongst the Board regarding the CDAR's program and it was the conclusion of the Board to review the program at the regular scheduled meeting in January. The Board agreed to the schedule below to review the upcoming work plan items as follows: October — Initial review of Money Market Funds Mr. Falconer and Chairman Ross volunteered to compile information regarding suggested Money Market Funds to be reviewed by the Board at the October meeting. Mr. Falconer 3 advised the Board that if they had any suggestions in regards to Money Market Funds to forward them to staff to be included in the report for the October meeting. November — LAIF December - Auditors January - CDAR's February — Review of Investment Policy In response to Board Member Moulin, Mr. Falconer advised that the audit report has not been received due to some outstanding accruals. Staff anticipates forwarding the audit report to the Board in December; the report is tentatively scheduled to be presented to the City Council in the month of November. MOTION - It was moved by Board Members Park/Olander to adopt the tentative schedule and continue the review of the 2009-2010 work plan. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month -End Cash Report and other selected Financial Data — August 2009 Mr. Falconer presented the month -end cash report advising that the rates continue to remain low as well as the T-Bills rates. Page 3 reflects the LAIF performance which continually decline with the current market. General discussion ensued by the Board and staff regarding the use of mutual funds in lieu of LAIF. Board Member Olander requested a verbal discussion regarding securities. It was agreed upon by the Board to discuss this issue under board member items. Noted and Filed B. Pooled Money Investment Board Reports — June 2009 Mr. Falconer advised that the portfolio size declined from June 2008 to June 2009, the June 2008 portfolio was at $72.5 billion, and the June 2009 portfolio was at $48 billion with an M approximate decline of $24 billion. Mr. Falconer further advised that the loan amounts are currently at 24% which are reflected on page 3. He also advised that he spoke with Pam Milliron, LAIF Administrator, and she advised him that all loans are current. General discussion ensued amongst the Board and staff regarding the decrease in the LAIF portfolio and the loans. Noted and Filed C. Joint City Council/IAB Meeting Mr. Falconer advised the Board that the annual joint meeting with the City Council is scheduled for October 27", at 7:00 p.m. IkiW=0FTir,IM 06 General discussion ensued amongst the Board regarding the October IAB meeting. It was the conclusion of the Board to change the date of the meeting from October 14, 2009 to October 7, 2009. MOTION - It was moved by Board Members Park/Moulin to reschedule the October 14, 2009 to October 7, 2009. Motion carried unanimously. VII BOARD MEMBER ITEMS Board Member Olander suggested that with respect to the funds believed not to be distributed within 5 years ($8 million) and presently invested in 3 to 5 year treasuries that we consider extending the maturities to include the 10-year Treasury Note, which yields in the 3.2% to 3.5% range at present. Currently the 10-year investments offer a higher yield with the similar terms as the 3 to 5 year investments. Board Member Olander stated that he had discussed this issue with staff, and staff was not in favor of a 10-year term. In response to Chairman Ross, Mr. Falconer advised that the state code allows investments only up to 5-year, but could be allowed up to 10 years if approved by City Council. General discussion ensued amongst the Board and staff regarding the extension of investments to 10 years. 5 Mr. Falconer advised that the issue needs to be discussed in line with the investment policy, and suggested that this issue be discussed during the review of the investment policy. It was the conclusion of the Board to discuss the 10-year investments during the review of the investment policy. In response to Board Member Moulin, Mr. Falconer advised the Board of the RDA funds being taken by the state, and the lawsuit that will be filed by the RDA regarding the state taking these RDA monies. General discussion ensued by the Board regarding the state's use of RDA monies and the lawsuit to be filed. In addition, the Board also discussed debt services payments and the City's possibility of paying a larger percentage due to other governing agencies inability to pay. Mr. Falconer advised the Board that under Prop. 1 A, the state will be borrowing 8% from all agencies' property taxes and will be paid back over a three year period; this equates approximately to $950,000 for the City of La Quinta. VIII ADJOURNMENT MOTION - It was moved by Board Members Moulin/Park to adjourn the meeting at 5:10 p.m. Motion carried unanimously. Su rtted y, Vianka Orrantia, Senior Secretary 3 INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: October 7, 2009 ITEM TITLE: Transmittal of Treasury Report for August 31, 2009 BACKGROUND: Attached please find the Treasury Report for August 31, 2009. RECOMMENDATION: Review, Receive and File the Treasury Report for August 31, 2009. hn M. Falconer, Finance Director C&9r/ 4 a V 0944V MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/Treasurer SUBJECT: Treasurer's Report for August 31, 2009 DATE: September 30, 2009 Attached is the Treasurer's Report for the month ending August 31, 2009. 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 I Sold/Matured Other Ending Change LAIF Certificates of Deposit US Treasuries (2) US Govl Sponsored Enterprises (2) Commercial Paper (2) Corporate Notes Mutual Funds 53,807,586 969,000 117,877,508 4,999,668 12,115,512 521.081 4,500,000 240,000 1 (3,150,000) (10,000,000) (5,000,000) (521.081) 33,883 0 332 (3,790) 0 55,157,586 1.209,000 107,911.391 0 0 12,111,722 0 1.360.000 240,000 (9,966,117) 0 (4,999,668) (3,790) 521,081 Subtotal I $ 190,290,355 $ 4,740.000 $ 18.671,081 $ 30,425 1 $ 176,389.699 $ 13,900,656 Cash 3 740,516 12,225,450 1 11,484,934 12,225,450 Total - $ 189,549,839 1 $ 16,965,450 1 1 $ 18671,081 $ 30,425 $ 187,874,633 $ ll.6752nRi 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. q 30 200 hn M. Falconer Date IF 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. K Treasurer's Commentary For the Month of August 2009 Cash Balances — The portfolio size decreased by $1.675 million to end the month at $187.88 million. The major reason for the decrease was normal cash disbursements exceeding cash receipts. Investment Activity — The average maturity of the portfolio decreased by 19 days to 92 days at the end of August. The Treasurer follows a buy and hold investment policy and purchased one f1► $240,000 Certificate of Deposit with a local bank in August. The portfolio continues to not have direct investments in Government Sponsored Enterprises (GSE's) at this time and has one non -Treasury Loan Guarantee Program Corporate Note - GE Capital. The sweep account earned $16 in interest income for the month of August and the bank fees for the month were $ 1,870 which resulted in a net decrease of $ 1,854 in real savings. Portfolio Performance — The overall portfolio performance decreased by four (4) basis points from the prior month and ended at .61 % for the month, with the pooled cash investments yielding .64%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding 2.88% which reflects the current interest rate environment. Looking Ahead While the liquidity crisis impacting financial and business institutions has somewhat waned, the Treasurer is still 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 non-TLGP corporate notes, non-TLGP 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 and Certificates of Deposits with local banks. 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N N N N N N N N C W _ W E & E � 8 g z b a Zry� t.EC S FF S LL � u y� � W m U9- mF y$ryp$p 6-3gry `tea d B� ILL U NaF v9pryap 8� S' V2i fl �� O Il LaF v9 qq�- �WNE C-o F- yNf�C b U J J LL U U f F F U N J J d U f F E $ ASH a' A a g w!2 x � � n LL g_ x I 0 City of La Quints Cornparalive Rates of Interest August 31, 2009 City of La Dolma Three Month August2uu6 4.94% 5.01% 4.07% 48 4.97% - 4.95% Sept2006 4,98% 501% 4.99% 53 500% 5.02% Canoe 5.DD% 6.02% 5.01% 67 4.96% SAO% Nov 20DO 5.04% 5.03% - 6.03% 62 4.94% 5.13% Dec 2006 5.08% 504% 5.06% W 4.W% 5.13% Jan 2007 5.18% SA214 5,16% 84 4.98% 5.16% Feb 2007 6.19% 5.13% 6.17% 45 4.95% 5.18% Wr2D07 5.21% 5.03% 5.15% 67 4.88% 5.21% Apr 2007 520% 5.14% 5,15% 42 4.84% 6,22% May 2W7 5,20% 505% 5.16% 32 4,81% 6.25% June 2007 5.19% 4,W% 6.10% 65 4.81% 6,25% FY 07N8 July 2007 521% '4.90% 5,12% 122 480% 5.25% August 2007 SAM 4.85% 5.08% 109 4.59% 5.25% Sept 2007 5.16% 4.1 606% 129 4.00% 523% Oct 2007 6.11% 4,85% 5.02% 116 3,95% 5.14% Nov 2007 503% C83% 4.96% 99 3.34% 4,90% Dec 2007 4.95% 3.43% 645% 123 339% 4.80% Jan 2008 4,68% 3.33% 4.22% 96 2,31% 4.62% Feb 2008 4.12% 3.24% 3.85% Be 2.07% 4.16% Mar 2008 4,07% 2.83% 3.67% 74 1.W% 378% Apr 2008 3.45% 3.27% 3.41% 82 1,70% 3.40% May 20D3 3.14% 3.27% 3.17% 63 192% 307% June 2008 3.09% 1.84% 266% W 2.14% 289% FY 08/09 July 2008 2.96% 1.93% 2.77% 62 170% 1.68% 2.29% 2.75% 2.18% 2.79% August 2008 3.16% 192% 2.88% 51 1.69% 189% 2.14% 2.38% 2.08% 278% Sept 2008 2.61% 1,92% 2.64% 37 1.42% 179% 196% 2.00% 2.13% 277% w 2008 2.66% 2.61% 2,61% 29 0.W% 1,40% 172% 1.50% 2.07% 2,71% Nov 2008 2,W% 2.36% 2,36% U 0.15% 0.40% 1.04% 125% 1.0% 2.57% Dec 2D08 1,60% 0.18% 1.42% 116 005% 025% 0.59% 0.88% 0.97% 2.W% Jan 2009 1.36% 0,18% 1.23% 82 0.16% 035% 043% 0.88% 0.31% 205% Feb 2DD9 1.23% 0.18% 1.1/% 75 0,30% O.W% 0.61% 0.88% 0.48% 1,87% Mar 2DO9 120% 0.18% 1.13% 69 0.20% 0.42% 070% 0.88% 0.37% 1.82% Apr2009 0,94% 0.18% 0.85% 54 0.31% 0.33% 0.59% 0,88% 0.28% 1,61% May2D09 0.92% OA8% 0.84% 80 0.18% 0.W% 0.53% 0,88% 0.23% 1.63% June200g 0.85% Us% OB0% 111 020% 035% 0.55% 1.13% 0.26% 1,38% FY 09/10 July 2009 0.69% 0.30% 0.65% 111 0,19% 0.28% 0.47% 1.00% 0.28% 104% 10 O N U) w' y A 7 Q 7 y r J d O w �O � O rt„ O U m o t N o V s o R 2 0 0 0 0 +-' 0 0 0 N O co ((D d V N O 1 O O O O O d a rn O N O El m O _T 0 11 INVESTMENT ADVISORY BOARD Business Session: B Meeting Date: October 7, 2009 TITLE: Continued Discussion of the Fiscal Year 2009/10 Work Plan BACKGROUND: At the September Board Meeting staff was directed to research possible short term same day liquidity investments. Staff has contacted several Finance Directors who have stated that they are using LAIF 100% based upon the current yield. In addition to LAIF a list of other possible investment vehicles, while not inclusive, includes the following: • Caltrust — a joint powers agency, which only recently has a money market $1 in $1 out managed by Wells Fargo. Their website states the following: Money Market Account For the CalTRUST-Wells Fargo Advantage Funds Heritage money market account (The CalTRUST-Heritage MMF), participants may invest through CaITRUST in the Heritage MMF at the most favorable expense ratio available to institutional investors. (See attachment) • California Asset Management Program (CAMP) a joint powers agency whose portfolio is managed by Public Finance Management. (See attachment) • Money Market Mutual Funds — such as Vanguard or Federated Investors. In addition, the attached listing of Institutional Money Market Funds was provided by Chairman Ross. RECOMMENDATION: Continued Discussion of the Investment Advisory Board 2009/10 Work Plan. o�� M. Falcoher, Finance Director Cal'1'KU51 Launches New Money 1vlarket uptfon ragc I V1 L League of California Cities 411ACU 'WeekwCITIES ` Y��e 2009 Issue *34 September 4, 2009 HOME CaITRUST Launches New Money Market Option CONTENTS CalTRUST just launched a new money market account in response to participant requests for a CalTRUST option with same day liquidity and a stable net asset value Editor's Note (NAV), or share price. This new account option is open to all CalTRUST participants Budget Clean -Up and has already has taken in over $100 million in assets in its first week. Expected on Prop. 1A Securitization, HUTA The CalTRUST money market account gives participants access to the Wells Fargo Deferral and Redevelopment Advantage Funds Heritage Money Market Fund the Heritage Fund Select Class 9 9 Y ( 9 ) shares. The Heritage Fund was launched in June of 1995, and had over $24 billion Register Now for Prop. IA in assets as of Aug. 28. Securitization Workshops The new CalTRUST money market option gives participants everything they have Assembly Revises and been asking for in a stable value option: Approves New Prison Reform Package • Same -day liquidity for purchases and redemption requests received by 1 Opposition Letters p.m. PT; Needed n Bill to Limit Retention * A stable $1 NAV; Proceeds . "AAA" and "Aaa" ratings from S&P and Moody's, respectively; American Recovery . Highly competitive money market rates; and Reinvestment a Best available expense ratio of just 13 basis points (0.13 percent); and Act: Updates and Additional Funding • Full compliance with all provisions of Rule 2s(7) governing SEC -registered Opportunities money market funds. CalTRUST Launches New Money Market Option Money Market Account is Easy to Access State water Resources Control Board Approves Participants can access information on their new money market account in the Construction General same manner as they do their short-term and medium -term accounts via 24-hour Permit password -protected Web site. To ensure transparency, participants can view each CCS Partnership Local portfolio's securities holdings in virtual real-time, which represents actual values at Leadership Summit close of business the prior day. Toolkit to Support Regional Reform Participants Now Have Even Greater Flexibility Events State Auditor With the launch of the money market account option, CalTRUST participants now Releases Proposed Citizens Redistricting have three active account options: Commission Application for Public • Money Market, with a dollar -weighted average maturity of 90 days or less Comment and some -day liquidity; ILG Releases Updated . Short-term, an enhanced cash option with a target duration of 0-2 years and Public Service Ethics Public Resource next -day liquidity; and Upcoming Events • Medium -term, with a target duration of 1.5-3.5 years with monthly liquidity The flexibility afforded by these three account options provides local agencies with a highly efficient means of allocating funds across the fixed -income spectrum, and a cost-free means of reallocating funds among these options as circumstances warrant. 2 http://newsletter.eacities.org/e_articleOO1534488.cfm?x=bl 1,0,w 9/30/2009 Cal KUS I Launches New Money Market Uption rage [ or Experienced Public Officials Provide Strategic Direction and Oversight The CalTRUST'S board of trustees provides strategic direction and oversight for all aspects of the CalTRUST program. The board is comprised of experienced local agency treasurers and finance officials. These expert individuals have years of experience with the restrictions and limitations of the California Government Code, and are actively engaged in the determination of overall investment strategy for the CalTRUST portfolios. The current CalTRUST board of trusteesincludes: • Chuck Lomeli, treasurer -tax collector, Solano County, and president of the CalTRUST Board of Trustees; • Glenn Duncan, council member, city of Chino, vice-president of the CaITRUST board of trustees and a registered municipal securities principal; • Bill Pollacek, treasurer -tax collector, Contra Costa County; • Don Kent, treasurer -tax collector, Riverside County • Dave Ciapponi, assistant general manager and chief financial officer, Westlands Water District; • John Colville, senior investment officer, city of Sacramento; • Dan McAllister, treasurer -tax collector, San Diego County; and • Rob Boitano, assistant treasurer and chief investment officer, Sonoma County: Find Out More For additional information on the new CalTRUST money market account option or any aspect of the CalTRUST program, contact Lyle Defenbaugh, Wells Capital Management at (916) 441-6200 or vist the CalTRUST Web site. [PRINTER FRIENDLY VERSION] Published by League of California Cities Copyright © 2009 League of California Cltles. All rights reserved. Powered by IMNTM E-MAIL TO A COLLE•At�,�GU�E `ter' 3 bttp://newsletter.cacities.org/e—articleOO1534488.cfm?x=bl 1,0,w 9/30/2009 PrNlilells Fargo Advantage Money Market Funds Heritage Money Market Fund Seeks current income, while preserving capital and liquidity. Information Advisor: wens rargo rur Inception Date: 06-29-95 Net Fund Assets: $24.6 Billion Fund Manager. David Sylvester Ticker Symbol: SHIXX CUSIP: 949917397 Net Expense Ratio: 0.20% ® Commercial Paper: 65% El Certificates of Deposit: 9% Time Deposits: 8% Repurchase Agreements: 6% ® Municipal Bonds: 5% FloatingNariable Rate Bonds: 5% Short Term Corporate Bonds: 2% Total: 100% Weighted Average Maturity 36 Days Moody's Money Market Fund Rating' Aaa S&P Money Market Rating' AAAm NAIC Approval° Yes Historical Performance, ent, LLCI Average Annual Total Returns as of 08-31-09 1 Year 3Year 5Year 10Year Since Inception 1.24% 3.41% 3.42% 3.29% 3.95% Total Returns 2002 2003 2004 2005 2006 2007 2008 1.75% 1.07% 1.27% 3.10% 4.96% 5.24% 2.82% Dividend and Distribution Information as of 08-31-09 7-Day 7-Day Current Current Yield 30-Day Month Dividend Yield Before Waivers Current Yield Mar 09 $0.0006 0.68% 0.63% 0.73% Apr 09 $0.0005 0.65% 0.60% 0.67% May 09 $0.0005 0.55% 0.51% 0.59% Jun 09 $0.0004 0.42°% 0.37% 0.47% Jul 09 $0.0003 0.32% 0.26% 0.36% Aug 09 $0,0002 0.27% 0.22% 0.29% Figures quoted represent past performance, which is no guarantee of future results. Investment returns will fluctuate. The Fund's yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted. Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund's current prospectus. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The adviser has committed to certain fee waivers and/or expense reimbursements. These reductions may be discontinued. 'Portfolio composition is subject to change and may have changed since the date specified. 'Institutional Class shares incepted on March 31, 2000. Performance shown prior to the inception date of the Institutional Class reflects the performance of the Administrator Class shares, and includes expenses that are not applicable to and are higher than those of the Institutional Class shares. 'The ratings indicated are from Standard & Poor's and/or Moody's Investors Service (together"rating agencies'J. Standard & Poor's is a trademark of McGraw-Hill, Inc., and has been licensed. The Fund is not sponsored, endorsed, sold, or promoted by these rating agencies, and these rating agencies make no representation regarding the advisability of investing in the Fund. 'The National Association of Insurance Commissioners (NAIC) is the organization of insurance regulators from the 50 states, the District of Columbia, and the four U.S, territories. The NAIC provides a forum for the development of uniform policy when uniformity is appropriate. A fund is NAIC approved when it is on the List of Approved Mutual Funds pursuant to Part 4, Section 6 (d) of the Securities Valuation Office (SVO) Purposes and Procedures Manual of the NAIC. This fact sheet must be accompanied or preceded by a current prospectus for Institutional Class shares of the Wells Fargo Advantage Money Market Funds. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds•. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. SNOT FDIC INSURED • NO BANK GUARANTEE - MAY LOSE VALUEI :" 2009 Well, Fargo Funds Mana,1-'rent, LLC. All i ghts �esorwd. STANDARD &POOR'S FUND PROFILE California Asset Management Program/Cash Reserve Portfolio About the Fund Fund Rating AAAm Fund Type Stable NAV Government Investment Pool Investment Adviser PFM Asset Management LLC Portfolio Manager Michael Varano Date Rating Assigned August 2001 Custodian BNY Western Trust Company Distributor PFM Fund Distributors Rationale The rating on California Asset Management Trust/Cash Reserve Portfolio is based on S&P's analysis of the portfolio's credit quality, investment policies, market price exposure, and management. The rating indicates the Fund has extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit, market, and/or liquidity risks Overview The CAMP Cash Reserve Portfolio is one of several funds managed by PFM Asset Management LLC. The investment objective of the CAMP Cash Reserve Portfolio is to provide as high a level of current income as is consistent with maintaining liquidity and stability of principal. The fund is designed as an investment vehicle for bond proceeds and operating funds of municipalities located in California. PFMAM, Inc., a wholly owned subsidiary of PFM Asset Management LLC, serves as the fund's distributor. Management The f ind's investment adviser is PFM Asset Management LLC (PFM). As adviser, PFM manages the CAMP Cash Reserve Portfolio and is responsible for the purchase and sale of all portfolio assets. PFM and Public Financial Management Inc., which is under common ownership with PFM, have managed funds since 1981. The two firms act as financial advisor and/or investment advisor to cities, townships, boroughs, counties, school districts, authorities, and financial institutions throughout the country, providing its clients with financial, investment advisory, and cash management services. Portfolio Assets The fund invests primarily in U.S. Treasury and Federal agency securities and repurchase agreements secured by such obligations, and may March 26, 2009 pA4� .Rh�11AND RD yi`je`'. .�-V' Portfolio Composition as of March 26, 2009 REPO cP 14,3% _ GOV-AGCY 46% GOV AGCY- Agency and Government BANK-BankOepcsas;CP- Cammercial Paper, REPO - Repurchase Agmemenl also invest in banker's acceptances, commercial paper and certificates of deposit. Repurchase agreements are conducted with highly credit worthy counterparties and generally comprise no more than 10% of total fund assets. These guidelines are consistent with California regulations concerning the investment of public funds. The fund manager seeks to comply with guidelines similar to those mandated for money market funds in Rule 2a-7 of the Investment Company Act of 1940. The Fund's weighted average portfolio maturity is generally kept low to maintain sufficient liquidity for redemptions and to limit market price exposure. Michael Masih - (1) 212-438-1642 Investors should consider the investment objectives, risks and charges and expenses of the fund before investing. The prospectus which can he obtained from your broker -dealer, contains this and other information about Me fund and should be read carefully before investing. M investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation of any other govemment agency. 41though the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. 5 California Asset Management Program/Cash Reserve Portfolio AAAm a the iness of a and jes, the e fits -. 5.-, .' Value per Share.... $1,00035 Net Assets (millions),, ........ $2,688.32 Inception Date ................... March 1995 Average Maturity... 59 days 7 Day Yield .................... ..... 0.85% Net Assets and Weighted Average Maturity (WAM) Sax 2500 e 9 2000 8 1500 Q 1000 f 0 — Net Nxb -- WeiyileE Avxepe AUW,rty Portfolio Credit Quality as of March 26, 2009 'As assessed by Standard & Poors 90 75 60 45 30 15 0 Portfolio Maturity Distribution as of March 26, 2009 into 80 60 n 40 20 0 Days m Portfolio 7 Day Yield Comparison " 58P ROW GIPIndm i FUM ' Money Fund Indices are calculated weekly by iMoneyNet Inc., and are comprised Ids rated or assessed by S&P to within the specific rating categories. The S&P Rated 'ndices are calculated weekly by S&P and are comprised of'AAAm' and'AArn mment inves"ent pools. yield quoted represents past performance. Past performance does not antee future results. Current yield may be lower or higher bran the yield ed. Perfomtance data current to the most recent month -end may be 'able by calling the Fund at th phone number listed in the "About the l" section on page 1. .Rating decisions are based on periodic 1 he Prinblpal Stability Fund Hating for this Lund issued by Standard & Poors can be tound in the'About the Fund' section on page 1. 1 he rating is current as of the date of this profile report. The fund's portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same rating or perform in the future as rated. Not all money market funds have principal stability fund ratings and those that do may have paid for them. The fact that a fund has a rating is not an indication that it is more or less risky or volatile than a fund that does not. The fund or a third party participating in the marketing of fund shares paid Standard & Poor's for this rating. Standard & Poor's receives no payment for disseminating ratings, except for subscriptions to its publications. Analytic services provided by Standard & Poors Ratings Services ("Ratings Services") are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services. Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poors is neither associated nor affiliated with the fund. The information in this report has been obtained by Standard & Poor's from sources believed by it to be reliable at the time the report is published. The information in this report, however, may be inaccurate or incomplete due to the possibility of human, mechanical, or other error by Standard & Poor's, its sources or others, or the information in this report may become inaccurate or incomplete due to the passage of time. Standard & Poors has no obligation to keep or to make the information in this report current, and it does not guarantee the accuracy, adequacy, or completeness of any information in this report. STANDARD & POOR'S MAKES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE. In no event shall Standard & Poor's, its affiliates or its third parry licensors be liable for any direct, indirect, special or consequential damages in connection with the use of any data or information contained herein. Copyright ® 2009 Standard & Poors, a division of The McGraw-Hill Companies. All rights reserved. Permissions: To reprint, translate, or quote Standard & Poors publications, contact: Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-9823; or by email to: research_request@standardandpoors.com. 0 Lipper institutional UN Government Money Market Funds Index Page I of 2 Vianka Orrantia From: ted@theodoreross.com Sent: Wednesday, September 30, 2009 2:03 PM To: John Falconer Cc: Vianka Orrantia Subject: Lipper Institutional US Government Money Market Funds Index Hi John - I thought that it might be helpful to the Investment Advisory Board's discussion and consideration of an alternative to LAIF to be aware of the Lipper indices of Institutional US Government Money Market Funds and Institutional US Treasury Money Market Funds. The components of both indices and their ticker symbols are presented below. Thank you for including this information in the next meeting's packet. Regards, Ted Ross Lipper Institutional US Government Money Market Funds Index Active Assets Institutional Government Securities Trust AISXX Barclays Global Investors Funds: Government Money Market Fund; Institutional Class Shares BVIXX BlackRock Liquidity Funds: FedFund; Institutional Shares TFDXX Cash Account Trust: Government & Agency Securities Portfolio; DWS Government Cash Institutional Shares DBBXX Columbia Funds Series Trust: Columbia Government Plus Reserves; Capital Class Shares GIGXX Columbia Funds Series Trust: Columbia Government Reserves; Capital Class Shares CGCXX Dreyfus Government Cash Management Funds: Dreyfus Government Cash Management; Institutional Shares DGCXX Dreyfus Government Cash Management Funds: Dreyfus Government Prime Cash Management; Institutional Shares DIPXX Evergreen Select Money Market Trust: Evergreen Institutional US Govt Money Market Fund, Institutional Shares EGIXX Fidelity Colchester Street Trust: Government Portfolio; Class I Shares FIGXX Fidelity Money Market Trust: Retirement Government Money Market Portfolio FGMXX Fifth Third Funds: Fifth Third Institutional Government Money Market Fund; Institutional Shares KGIXX First American Funds, Inc: Government Obligations Fund; Class Y Shares FGVXX Funds For Institutions Series: FFI Government Fund MLGXX Goldman Sachs Trust: Financial Square Federal Fund, FST Shares FEDXX Goldman Sachs Trust: Financial Square Government Fund; FST Shares FGTXX HSBC Investor Funds: HSBC Investor US Government Money Market Fund; Class Y Shares RGYXX JPMorgan Trust l: JPMorgan Federal Money Market Fund; Institutional Class Shares JFMXX JPMorgan Trust II: JPMorgan US Government Money Market Fund; Capital Shares OGVXX Legg Mason Partners Institutional Trust: Western Asset Institutional Govt Mny Mkt Fd; Inst Shares INGXX Money Market Obligations Trust: Government Obligations Fund; Institutional Shares GOIXX Money Market Obligations Trust: Government Obligations Tax -Managed Fund; Institutional Service Shares GTSXX Morgan Stanley Institutional Liquidity Funds: Government Portfolio; Institutional Class Shares MVRXX MTB Group of Funds: MTB US Government Money Market Fund; Institutional Class AKGXX 9/30/2009 7 Lipper institutional us Uovernment Money Market Funds Index Page 2 of 2 Northern Institutional Funds: Government Portfolio; Shares BNGXX Northern Institutional Funds: Government Select Portfolio; Shares BGSXX RidgeWorth Funds: Institutional US Government Securities Money Market Fund, Institutional Shares CRGXX SEI Daily Income Trust: Government II Fund; Class A Shares TCGXX State Street Institutional Investment Trust: State Street Institutional US Government Money Market Fund; Inst GVMXX Wells Fargo Funds Trust: Wells Fargo Advantage Government Money Market Fund; Administrator Class Shares WGAXX Lipper Institutional US Treasury Money Market Funds Index Barclays Global Investors Funds: Treasury Money Market Fund; Institutional Class Shares BRIXX BlackRock Liquidity Funds: T-Fund; Institutional Shares TSTXX BlackRock Liquidity Funds: Treasury Trust Fund; Institutional Shares TTTXX Columbia Funds Series Trust: Columbia Treasury Reserves; Adviser Class Shares NTRXX Dreyfus Institutional Reserves Funds: Dreyfus Institutional Reserves Treasury Fund; Premier Shares DRRXX Dreyfus Treasury & Agency Cash Management; Institutional Shares DTRXX Dreyfus Treasury Prime Cash Management; Institutional Shares DIRXX Evergreen Select Money Market Trust: Evergreen Institutional Treasury Money Market Fund; Institutional Shares EIMXX Evergreen Select Money Market Trust: Evergreen Instl 100% Treasury Money Market Fund; Institutional Shares EUIXX Fidelity Colchester Street Trust: Treasury Only Portfolio; Class I Shares FSIXX Fidelity Colchester Street Trust: Treasury Portfolio; Class I Shares FISXX Fifth Third Funds: Fifth Third US Treasury Money Market Fund; Institutional Shares FQTXX First American Funds, Inc: Treasury Obligations Fund; Class D Shares FTDXX Funds For Institutions Series: FFI Treasury Fund MLTXX Goldman Sachs Trust: Financial Square Treasury Instruments Fund; FST Shares FTIXX Goldman Sachs Trust: Financial Square Treasury Obligations Fund; FST Shares FTOXX Goldman Sachs Trust: Institutional Liquid Assets Treasury Instruments Portfolio; ILA Admin Units IRAXX HSBC Investor Funds: HSBC Investor US Treasury Money Market Fund; Class I Shares HBIXX Investors Cash Trust: Treasury Portfolio; Institutional Class Shares ICTXX JPMorgan Trust I: JPMorgan 100% US Treasury Securities Money Market Fund, Institutional Class Shares JTSXX JPMorgan Trust It: JPMorgan US Treasury Plus Money Market Fund; Institutional Shares IJTXX Legg Mason Partners Institutional Trust: Western Asset/Citi Institutional US Treasury Reserves; Class A Shares CIIXX Money Market Obligations Trust: Treasury Obligations Fund; Institutional Shares TOIXX Money Market Obligations Trust: US Treasury Cash Reserves; Institutional Shares UTIXX Morgan Stanley Institutional Liquidity Funds: Treasury Portfolio; Institutional Class Shares MISXX RidgeWorth Funds: Institutional US Treasury Securities Money Market Fund; Institutional Shares CIUXX RidgeWorth Funds: US Treasury Money Fund; Class I Shares CUSXX SSgA Funds: SSgA US Treasury Money Market Fund SVTXX UBS Money Series: UBS Select Treasury Institutional Fund SETXX Wells Fargo Funds Trust: Wells Fargo Advantage Treasury Plus Money Market Fund; Institutional Class Shares PISXX 9/30/2009 8 INVESTMENT ADVISORY BOARD Business Session: C Meeting Date: October 7, 2009 ITEM TIT[ F- IAB Scheduled Meeting of November 11" — City Holiday BACKGROUND: Due to the upcoming holiday, city hall will be closed on Wednesday November 11"; it is staff's request that the Board reschedule the November meeting. RECOMMENDATION: Reschedule the November lu - John M. Falconer, Finance Director INVESTMENT ADVISORY BOARD Meeting Date: October 7, 2009 TITLE: Month End Cash Report — September 2009 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 10 N N C po 0 o N N N r W 3 Z E O O O O m fp N m O O W O O O m m n r r W r m N m O j O O O rtl (p m m O' 0 fp W W 'Nim N C C m m N N N m N N N 0 .dJ O O O p 1E w o O W P O O m m W O O V O WU S O O O m m N m N v N O O O m t0 r N N m O IR O m 19 m b O O O m O 0 LL 0 0 N O N 00,0 N W pj 0 W W Q O O O ONI M N N O O N N O O O c6 pj O m O O N N N O O O O m U g(6 ro ro m o o m r r nN N n m is m m m 0 LL� O m m O O O O O O O O O O O >q LL j N N N O N o n n r o 16 16 3 N N N N � O (O fm0 N f0 LL O r0 N m O N N N N O O N N w ula W.o- � o 3 n of m c_ Ih m O o p O O [O V cop m IL U N d O t6 tD W N VI O N r p r m O m O Nzo 7- E E� 2 y 0>� C y T C o � J om oQU � W Q Q W-Ji<WoZolli2<Mw Q 2 N 5 a `m yn n N N L V_ N Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) October 12, 2009, (Columbus Day) banks are closed. Transactions taken on October 12 will be effective October 13, 2009. SAVE THE DATE: LAIF ANNUAL CONFERENCE, OCTOBER 21-22, 2009 PMIA Performance Report part Quaff 2 xAuerage �Rrtaturitji; 9/10/2009 0.80 0.95 207 9/11/2009 0.79 0.95 206 9/12/2009 0.79 0.95 206 9/13/2009 0.79 0.95 206 9/14/2009 0,791 0.95 201 9/15/2009 0.78 0.94 203 9/16/2009 0.78 0.94 204 9/17/2009 0.78 0.94 207 9/18/2009 0.73 0.94 212 9/19/2009 0.73 0.93 212 9/20/2009 0.73 0.93 212 9/21/2009 0.73 0.93 210 9/22/2009 0.73 0!931 209 9/23/2009 1 0.721 0.92 210 LAIF Performance Report Quarter ending 6/30/2009 Apportionment Rate: 1.51% Earnings Ratio: .00004133177972413 Fair Value Factor: 1.001304743 PMIA Average Monthly Effective Yields Aug 2009 0.925% July 2009 1.035% Jun 2009 1.377% Pooled Money Investment Account Portfolio Composition $62.4 Billion 08/31 /09 Loans 18.74% Corporate Bonds 0.45% Commercial Paper 13.74% Now Accounts 14 1.47% Time Deposits 8.57% CDs/BNs 9.99% Treasuries 27.28% Mortgages 1.54% Agencies 18.22% xecent tssu Auction xesuns ragc t U1 3 TreasuryDirect Ilne , > A9a9,.011 `n1s,.Data a.R,101$ ' L- tlll Allln 011a • R11,1I PUAUcnnu 0.e111ta Recent Bill Auction Results Seen,ity xs.ue nawnty D+scnu.I mvevsment P,i= cuslP Term Hate Date Rate % Rate 1k PA. "Do 4WEEK 10-01-2009 10 29-2009 0.040 0.041 99,916889 91279SP96 13-WEEK 10 01-2009 12-31-2009 0.115 0J11 99970931 91279SR60 26-WEEK 10-01-2009 04-01-2010 0.190 0.193 99.903944 91279501.3 4 WEEK 09-24 2009 10-22-2009 0.040 0.041 99 996889 912295544 13-WEEK 09 24-2009 12-24-2009 a 100 D,01 99!974722 912295R52 26 WEEK 09 24-2009 03 25-2010 0. 1'l0 0.193 99.903944 912295iO4 52-WEEK 09-24-2009 09 23-2010 0401 0412 11 190500 912795U90 4-WEEK 0912T 2009 10-15 2009 0.030 0.0]U 99,997667 J12795P20 - 13-WEEK 09-17-2009 1242-2009 0.335 0.137 99 JG5825 912195509 26-WEEK 09-17-2009 03-18-2010 0.210 0.213 99.893033 91D95M 4-WfEK 09-10-2009 10-08-2009 0 090 0.091 99.993000 912295P62 13-WEEK 09 10 2009 12-10-2009 0. 140 0, 142 99964611 91279513/ 26 WEEK 09-10-2009 03-11-2010 0.225 0228 99.00s"I 9127951W 308-DAY 09-10-2009 02-15-2010 U.30S 0.391 99.620blI 912795UY5 4-WEEK 09-03-2009 10 01-2009 a 085 0.086 99.993389 912795P54 13 WEEK 09-03-2009 12-03-2009 0.150 0. 152 99.962083 91279SQ61 26-WEEK 09-03-2009 03-042010 0.240 0,144 99.37866, 10195T50 4 WEEK 08-22-2009 09 24 2009 0. 120 0. 122 99.990667 11219,536 13-WEEK 08 21 2009 11 22 2009 0.160 0. 162 99 ,1111, 912795Q53 26 WEEK 08 22 2009 02 25-2010 0355 0.259 99.871083 IV715T43 52-WEEK 08 21 2009 08-26-2010 0.460 1 468 99.534889 9079SU82 4-WEEK U8-20-2009 09 17 2009 0.125 0. 122 99.990228 /12715/39 20-OAY 08 20 2009 10-29-2009 0.145 0.142 99.9%506 012295196 13-WEEK 08-20 2009 11-19 2009 0.180 U.103 99954500 912295551 26-WEEK 08 20 2009 02-182010 0.270 0.274 99.8W500 912795735 303-DAY 08 18 2009 06-12-2010 0.445 0.4i2 99.625458 912295UU3 4-WEEK 08-13 2009 09-10 2009 0.150 0.152 99.988333 912295P21 70 OAY 08-13 2009 10-22 2009 0.185 0.188 99.964028 912295544 13-WEEK 08-13-2009 11-12-2009 0,185 0.188 99.953236 91279SQ38 26-WEEK 08-13-2009 02-11-2010 0.285 0,289 99.855917 912795T22 4-WEEK 08-062009 09-03-2009 0.145 0IV 99.988722 912295N98 10-DAY 98-06-2009 10-15-2009 0.185 0.E08 99.9"028 912295P20 13-WEEK 08-06-2009 11 05 2009 0.180 0,183 99.954500 9IV95Q2o 26-WEEK 08-06-2009 02-04-MID 0.275 0J119 99.860972 912795SSS 4-WEEK 02-30-2009 08-2/-2009 0.130 0.1.32 99.989889 9t2295S28 20 DAY 02-30-2009 10-00-2001 0.185 0.188 99.964028 91279SP62 13-WEEK 02-30-2009 10-29-2009 0.190 0.1.93 99.951972 912Y95P96 26-WEEK 02-30-2009 01-28-2010 0.2Y5 0.229 99.86"72 912795522 52 WEEK 07-30-2009 02-29-2010 0470 0420 09 524228 9122951129 4 WEEK 0]-23-2009 06-20 2009 0.IS0 0.152 99,988133 9127951,122 Effective with the 11/2/98 auction, all bills are auctioned using the single-pnced method. I rc,d,II 111tormACon Alt I laa n cv,l-IY,iv.N 3 E.M NO11ce`+ I W�Ll t. 'r•m„eca1 n. I Aa.l1.1n1u1 IDm4 Q,allry I1S 1 1 %1"olt I n.e I'll, t'u'li, 1)"", http://www.treasurydirect.gov/RI/0FBills 9/29/2009 rtcts: ti.iD- 3eiecteu Interest IcateS, weo-only Ua11y Upuate--3epten1oer /y, /etjy rage I ul 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 September 29, 2009 2009 Instruments Sep 28 Federal funds (effective) 1 2 3 0.13 Commercial Paper 3 9 5 6 Nonfinancial 1-month 0.14 2-month 0.16 3-month 0.20 Financial 1-month 0.15 2-month 0.14 3-month 0.21 3-month nonfinancial or financial posted by CPFF 7 Without surcharge 1.17 With surcharge 2.17 CDs (secondary market) 3 8 1-month 0.21 3-month 0.25 6-month 0.36 Eurodollar deposits (London) 3 9 1-month 0.40 3-month 0.55 6-month 0.85 Bank prime loan 2 3 10 3.25 Discount window primary credit 2 11 0.50 U.S. government securities Treasury bills (secondary market) 3 9 9-week 0.02 3-month 0.11 6-month 0.18 1-year 0.39 Treasury constant maturities Nominal 12 1-month 0.03 3-month 0.11 6-month 0.18 1-year 0.40 2-year 0.98 3-year 1.47 5-year 2.33 7-year 2.95 10-year 3.31 20-year 4.02 30-year 4.04 http://www.federalreserve.gov/Releases/H 15/update/ Federal Reserve Statistical Release ti H.15 Selected Interest Rates (Daily) Sk,,,,,, Lo�,�,� Release Date: September 29, 2009 Weekly release dates I Historical data I Data Download Program_(DDP) I About I Announucments Daily update Other formats: -Screen reader I ASCII '1'' Darn Downioaa ® Program The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday through Friday on this site. If Monday is a holiday, the weekly release will be posted on Tuesday after the holiday and the daily update will not be posted on that Tuesday. 9/29/2009 rnn: Interest Icates, weo-umy batty upuate--3eptemoer ty, /uvv rage /_ of s Inflation indexed 13 5-year 0.98 7-year 1.23 10-year 1.57 20-year 2.05 Inflation -indexed long-term average 19 2.06 Interest rate swaps 15 1-year 0.62 2-year 1.30 3-year 1.89 9-year 2.34 5-year 2.66 7-year 3.11 10-year 3.45 30-year 3.92 Corporate bonds Moody's seasoned Asa 16 5.00 Bea 6.12 State & local bonds 17 Conventional mortgages 18 Footnotes 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 9. On a discount basis. 5. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company. The trades represent sales of commercial paper by dealers or direct issuers to investors (that is, the offer side). The 1-, 2-, and 3-month rates are equivalent to the 30-, 60-, and 90-day dates reported on the Board's Commercial Paper Web page (www.federalreserve.gov/releases/cp/). 6. Financial paper that is insured by the FDIC's Temporary Liquidity Guarantee Program is not excluded from relevant indexes, nor is any financial or nonfinancial commercial paper that may be directly or indirectly affected by one or more of the Federal Reserve's liquidity facilities. Thus the rates published after September 19, 2008, likely reflect the direct or indirect effects of the new temporary programs and, accordingly, likely are not comparable for some purposes to rates published prior to that period. 7. CPFF refers to the Federal Reserve's Commercial Paper Funding Facility. The rates are identical under the CPFF for financial and nonfinancial commercial paper. An issuer of commercial paper into the CPFF may avoid the surcharge by providing a collateral arrangement or indorsement that is acceptable to the Federal Reserve Bank of New York. Source: Federal Reserve Bank of New York. 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.S.-chartered commercial banks. Prime is one of several base rates used by banks to price short-term business loans. 11. The rate charged for discounts made and advances extended under the Federal Reserve's primary credit discount window program, which became effective January 9, 2003. This rate replaces that for adjustment credit, which was discontinued after January 8, 2003. For further information, see www.federalreserve.gov/boarddocs/press/bcreg/20O2/2O0210312/default.htm. The rate reported is that for the Federal Reserve Bank of New York. Historical series for the rate on adjustment credit as well as the rate on primary credit are available at www.federalreserve.gov/releases/hl5/data.htm. 12. Yields on actively traded non -inflation -indexed issues adjusted to constant maturities. The 30-year Treasury constant maturity series was discontinued on February 18, 2002, and reintroduced on February 9, 2006. From February 18, 2002, to February 9, 2006, the U.S. Treasury published a factor for adjusting the daily nominal 20-year constant maturity in order to estimate a 30-year http://www.federalreserve.gov/Releases/HI5/update/ 9/29/2009 rlcn: n.Ir-3nlectnu Illterest Hates, weo-vnq Many upaale--3eptemoer /y, luuy rage j of j nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex historical.shtmi. Source: U.S. Treasury. 13. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturities. Source: U.S. Treasury. Additional information on both nominal and inflation -indexed yields may be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html. 14. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years. 15. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Page ISDAFIX(R)1. 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 Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 17. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 18. Contract interest rates on commitments for fixed-rate first mortgages. Source: Primary Mortgage Market Survey(R) data provided by Freddie Mac. ---------------------------------------------------------------------------------------------------- Note: Weekly and monthly figures on this release, as well as annual figures available on the Board's historical H.15 web site (see below), are averages of business days unless otherwise noted. 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, contact Publications Services at the Federal Reserve Board (phone 202-452-3244, fax 202-728-5886). For paid electronic access to current and historical data, call STAT-USA at 1-800-782-8872 or 202-482-1986. Description of the Treasury Nominal and Inflation -Indexed Constant Maturity Series Yields on Treasury nominal securities at "constant maturity" are interpolated by the U.S. Treasury from the daily yield curve for non -inflation -indexed Treasury securities. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The constant maturity yield values are read from the yield curve at fixed maturities, currently 1, 3, and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity. Similarly, yields on inflation -indexed securities at "constant maturity" are interpolated from the daily yield curve for Treasury inflation protected securities in the over-the-counter market. The inflation -indexed constant maturity yields are read from this yield curve at fixed maturities, currently 5, 7, 10, and 20 years. Weekly release dates I Historical data I Data Download Program (DDP)_I About I Announcements Daily update Otherformats: Screen reader I ASCII Statistical releases I Ionic I Economic research and data Accelsibifity I Connie(Us Lost update: September 29, 2009 http://www.federalreserve.gov/Releases/H 15/update/ 9/29/2009 r1cn: �-ommerctai raper scares ana uursranamgs Page 1 of 3 Federal Reserve Release Commercial Paper Release ut I Ann DP Announcement I Outstandin s I Vollune statistics Year-end Mat urtt Distribution Data Download P Data as of September 28, 2009 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust & Clearing Corporation Posted September 29, 2009 Discount rates Ferm AA nonfinancial A2/P2 nonfinancial AA financial AA asset -backed 1-day 0.12 0.28 0.11 0.37 7-day 0.20 0.30 0.09 0.60 15-day 0.14 0.31 0.12 0.36 30-day 0.14 0.30 0.15 0.41 60-day 0.16 0.40 0.14 0:29 90-day 0.20 n.a. 0.21 0.28 Trade data insufficient to suonort ralculatinn of the An-dav A9/P9 nnnfn.nnial rat. far A.ot.mh.r 9 Yield curve I1111tMaRIJI .9 — — — AA nonfirumcia ••••••••••• A2JP2 nonfinancial —"--- AA financial a . _ ., i.._.._. 1, 2009. Percent 1.00 0.75 r - 1 1 7 15 30 Days to Maturity 0.50 0.25 0.00 http://www.federalreserve.gov/Releases/CP/ 9/29/2009 rxB: i-ornmerciai raper xates ana uutstanaings Page 2 of 3 Discount rate spread ,mirty-day A21P2 less AA nonfinancial commercial paper (daily) spw4w' 5.61Y moving 1 w4 1 0 Basis point. 800 700 600 500 400 - 300 - 200 - 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 Discount rate history 1111]LY-Uay CUP111111CUU] a] PUPeU JUally) rercent — — — AA H0nfifI;knCLLI .... AJP2 nonfinancial AA fin racial AA I 2001 2002 2003 2004 2005 2006 2007 2008 2009 Outstandings Weekly (Wednesday), seasonally adjusted http://www.federaireserve.gov/Releases/CP/ 9/29/2009 r": uommerciai raper Kates ana uutstanamgs Billions of dollars rage s of 3 1210 1110 1010 910 810 710 610 510 410 Billions of dollars --- Noannanciul(ri i(acalc) Fiwmcial{Icttscale) ' t t A i Af a 2001 2002 2003 2004 2005 2006 2007 2008 2009 290 ME 210 170 130 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 I Data Download Program_(DDP) Home I Statistical releases Accessibility I Contact Us Last update: September 29, 2009 http://www.federalreserve.gov/Releases/CP/ 9/29/2009 City of La Quints Cash Flow Budget to Actual August 31, 2009 Cash Basis Budge( Actual Accrual/ Adjusted Total Variance Account 8/09 8/09 Ad'ustroent B/09 Over Under Notes Property Tax/ Tax Increment - - Transient Occupancy Tax 111,408 357,369 (82,857) 274,512 163,104 Nighermand budgeted Sales Tax 337,050 441,400 441.400 104,350 sales Tax paymem higher than budgeted SilverRock Goff 68,807 - 92,940 92,940 24,133 Library 1,275,074 - - (1,275,074) Did not receive County payment Riverside Co Transportation Commission - - Other revenues 761.691 664,078 664,078 (97,613) ' Revenues 2,554,030 1,555,788 82,867 1,472,931 1,081,099 Expenditures Salaries B Fringe Benefits 903,704 800,481 800,481 (103.223)Did not receive conaunanrs Wove Other expenditures 2.510,786 1,570 680 1,570680 940.106 Didnot pay police Invoice 3414,490 2,371161 2,371161 1043329 Subtotal 296,899 143,042 143.042 (153,858) Redevelopment Agency Debt Service(Principaglnterest/Pass Through) 223,044 223,044 223044 Subtotal 519,943 366086 366086 153858 i 692 348 1,692,348 1.692 348 Capital Projects Total Expenditures 2,242,085 1,044,899 1,044,899 1,197,186 Net Revenues/Expenditures 311,945 510,889 11121B5711 423,032 2,278,285 NOTE 1: Expenditures are budgeted at 8.34% per month Difference between actual and budget (Undempent) DEPARTMENT Overspent Notes GENERAL GOVERNMENT (119,209) CITY CLERK (6,246) COMMUNITY SERVICES 479.563 Payments Drema FINANCE (11.402) BUILDING 8 SAFETY 2.229 PUBLIC SAFETY (1,418.862) Did not pay Police invoice PLANNING (81.790) PUBLIC WORKS: 55947 SUBTOTAL -GENERAL FUND - 1211,664 (143.477) Library Gas Tax Federal Assistance - JAG Grant Stead (Cops) Revenue Indian Gaming - Lighting 8 Landscaping RCTC Development Agreement - CVViolentCrimeTaskForce 144,888 close-out of project -Paid Indio balance AB 939 (12,427) Quimby Infrastructure Proposition 1B South Coast Air Quality (2,219) Transportation Parks 8 Recreation Civic Center - Library Development - Community Center Street Facility - Park Facility - Fire Protection Arts In Public Places - (14,472) Interest Allocation - EOuipmenl Replacement 10,159 Information Technology (33,594) Park Maintenance Facility (31,603) SllverReck Goff (47,262) SilverRock Reserve LQ Public Safety Officer (167) Finance Authority - 1,609 Capital Improvement - Total 1,340229 INVESTMENT ADVISORY BOARD Meeting Date: TITLE: October 7, 2009 Pooled Money Investment Board Report for July 2009 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for July 2009 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 JULY 2009 WITH JULY 2008 (DOLLARS IN THOUSANDS) Average Daily Portfolio Accrued Earnings Effective Yield JULY 200911 JULY 2008 CHANGE $ 56,319,757 $ $ 49,530 $ 1.035 66,340,351 $-10,020,594 157,011 $-107,481 2.787 -1.752 Average Life -Month End (In Days) 188 222 -34 Total Security Transactions Amount $ 27,812,203 $ 30,037,220 $ -2,225,017 Number 560 622 -62 Total Time Deposit Transactions Amount $ 4,422,700 $ 6,694,700 $ -2,272,000 Number 175 241 -66 Average Workday Investment Activity $ 1,401,517 $ 1,669,633 $ -268,116 Prescribed Demand Account Balances For Services $ 1,060,884 $ 606,699 $ +454,185 For Uncollected Funds $ 81,233 $ 107,578 $ -26,345 NOW Account Average Balance 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) July 31, 2009 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 11,320,486 17.54 -1.03 Bonds 0 0.00 0 Notes 3,860,611 5.98 -1.84 Strips 0 0.00 0 Total Government $ 15,181,097 23.52 -2.87 Federal Agency Debentures $ 6,901,832 10.70 -3.31 Certificates of Deposit 4,785,007 7.41 -1.61 Bank Notes 0 0.00 0 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 2,443,166 3.79 -0.05 Time Deposits 5,469,700 8.47 -2.48 GNMAs 123 0.00 0 Commercial Paper 6,287,516 9.74 +5.57 FHLMCIRemics 980,191 1.52 -0.44 Corporate Bonds 303,939 0.47 -0.13 AB 55 Loans 6,145,725 9.52 -3.12 GF Loans 12,764,500 19.78 +3.95 NOW Accounts 2,982,729 4.62 +4.62 Other 300,000 0.46 -0.13 Reversed Repurchases 0 0.00 0 Total (All Types) $ 64,545,525 100.00 INVESTMENT ACTIVITY JULY 2009 JUNE 2009 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 560 $ 27,812,203 422 $ 20,885,182 Other 1 20,371 24 60,526 Time Deposits 175 4,422,700 150 3,089,000 Totals 736 $ 32,255,274 596 $ 24,034,708 PMIA Monthly Average Effective Yield 1.035 1.377 Year to Date Yield Last Day of Month 1.035 2.224 2 Pooled Money Investment Account Portfolio Composition $64.5 Billion 07/31 /09 La 29. Corporate Bonds 0.47% Commercial Pap 9.74% Now Accounts CD4 Time Dep osits 7.41% 4.62% 8.47% Mortgages 1.52% Agencies 14.95% BOARD MEMBER ITEMS