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2010 05 12 IABP.O. Box 1504 LA QUINIA, CA]AFOtnlA 92247-1504 78-495 CALLIa TANIrICe (760) 7 7 7 - 7 0 0 0 LA QUINrA, CALIFORNIA 92253 FAX (760) 777-7101 AGENDA INVESTMENT ADVISORY BOARD Study Session Conference Room 78-495 Calle Tampico- La Quinta, CA 92253 May 12, 2010 - 4:00 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 March 10, 2010 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for March 2010 B. Continued Discussion of the Investment Advisory Board 2009/10 Work Plan and Fiscal Year 2010/11 Investment Policies VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report and other selected Financial Data - April 2010 B. Pooled Money Investment Board Reports on Hand for Review — February 2010 C. Update on California Municipal Treasurers Association Conference (CMTA) VII BOARD MEMBER ITEMS VIII ADJOURNMENT PUBLIC NOTICES The La Quinta Caucasus 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 7a-495 Calle Tampico, La Quinta, CA 92253, during normal business hours. ` ] INVESTMENT ADVISORY BOARD MEETING MARCH 10, 2010 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, Ross and Rassi ABSENT: Board Member Park OTHERS PRESENT: John Falconer, Finance Director and Monica Radeva, Secretary II PUBLIC COMMENT - None III CONFIRMATION OF AGENDA - Confirmed IV CONSENT CALENDAR A. Approval of Minutes of Meeting on February 10, 2010 for the Investment Advisory Board. MOTION: It was moved by Board Members Moulin/Rassi to approve the minutes of February 10, 2010. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for January 2010 Mr. Falconer presented and reviewed the staff report advising the Board that the annual cash balance for the City ended slightly over $191 million, with an increase of $25 million due to the first installment of property taxes received from the County of Riverside. Mr. Falconer further advised that previously reported page 8 reflects the temporary purchase of Federal Home Loan bank GSE's in the amount of $19 million, which is due to mature in April; upon maturity, these funds will be rolled over temporarily for an August maturity, at which time the funds will be used to pay result of the temporary $19 million investment, the overall portfolio yield ended at .43% with the pooled investment yield at .46%, in comparison to the previous year's yield at 1.23%, which reflects the interest rate environment. Mr. Falconer also advised that the City holds a Certificate of Deposit with La Jolla Bank; in February the bank was acquired by OneWest Bank through an agreement with the Federal Deposit Insurance Corporation (FDIC), which has no affect on the City's CD. In addition, he advised that LAIF recently increased their maximum from $40 million to $50 million per account. Chairman Ross requested that the following correction be made to page 3, last paragraph, and third sentence: The Treasurer plans to invest these funds in either short term Farm Credit (GSE) or Federal Home Loan Bank (GES) ,`1pwsky [... I In response to Board Member Moulin, Mr. Falconer clarified that a "bullet," is a type of investment and is similar to that of a T-Note and is paid semi-annually. Mr. Falconer also clarified that the balances on page 8 were the LAIF quarterly interest earnings for the City and the RDA accounts. General discussion ensued amongst the Board and Staff regarding interest earnings and the scheduled payments dates of the pass - through payments. MOTION - It was moved by Board Members Moulin/Bassi to approve, receive and file the Treasury Report for January 2010. Motion carried unanimously. B. Continued Discussion of the Investment Advisory Board 2009- 2010 Work Plan and 2010-2011 Investment Policy Mr. Falconer advised that the Investment Policy was distributed at the previous month's meeting for the Board's review and any recommended changes would be discussed. He further advised that staff made the necessary changes to the glossary according to the MTA's glossary. Mr. Falconer further advised that after considerable consideration to alternatives to LAIF, staff had no recommendations at this time. 2 Mr. Falconer advised of the minor changes made by staff to the glossary: the definition of "Repurchase Agreement", the maximum amount to LAIF as well as a few cosmetic changes. The Board reviewed the changes/deletions to the 2010-2011 with those changes being reflected in the draft investment policy. MOTION - It was moved by Board Members Rassi/Moulin to continue the review of the 2009-2010 Work Plan and the 2010- 2011 Investment Policy. Motion carried unanimously. C. CMTA Conference — Sacramento, California, April 20 — 23, 2010 Mr. Falconer presented the staff report advising that the Annual California Municipal Treasurers Association Conference will be held April 20 — 23, 2010 in Sacramento, California. Mr. Falconer further advised that the City does provide for one staff member and two Board Members to attend. In response to Chairman Ross, Mr. Falconer advised the Board of his tentative travel plans. He further advised that if no Board Members are able to attend, staff will bring back the Conference materials for the Board to review. MOTION - It was moved by Board Members Rassi/Moulin to have two Investment Advisory Board Members attend the CMTA Conference in Sacramento, CA. Motion carried unanimously VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report and other selected Financial Data — February 2010 Mr. Falconer presented and reviewed the staff report advising that page 3 reflects the LAIF Performance reporting with the yields currently at .53% with the average maturity at 222 days with the City's average slightly below and the PMIA loan is at 17.65%. In addition Mr. Falconer further advised that in February, the City had its mid -year budget review; page 12 reflects the City's budgeted projections, with a decline in the projected property taxes by 5%, TOT taxes declined by 5% to 6% and sales taxes declined for the year by 15%, which is a result of the current economy. 3 In response to Chairman Ross, Mr. Falconer updated the Board on the current status of the City's property taxes owed and clarified why the City is considered a "teeter" city. General discussion ensued amongst the Board regarding Prop 8 and Prop 13 and their affects on current assessed value of City homes. Noted and Filed B. Pooled Money Investment Board Reports — December 2009 Mr. Falconer advised that page 1 reflects a comparison of the pooled money with an increase in the state's pooled money from December of 2008 at $59,947,044,000 to December 2009 at $66,354,589,000. Noted and Filed VII BOARD MEMBER ITEMS — None VIII ADJOURNMENT MOTION - It was moved by Board Members Moulin/Rassi to adjourn the meeting at 5:11 p.m. Motion carried unanimously. Z'i"V Vianka Orrantia, Senior Secretary M INVESTMENT ADVISORY BOARD Meeting Date: May 12, 2010 ITEM TITLE: Transmittal of Treasury Report for March 2010 BACKGROUND: Attached please find the Treasury Report March 2010 RECOMMENDATION: Business Session: A Review, Receive and File the Treasury Report for March 2010 John M. Falconer, Finance Director MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Directorrreasumr SUBJECT: Treasurer's Report for March 31, 2010 DATE: April 30, 2010 Attached is the Treasurer's Report for the month ending March 31, 2010. 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 Endin Change LAIF Certificates of Deposit US Treasuries US Gov4 Sponsored Enterprises Commercial Paper Corporate Notes Mutual Funds $ 49,630,475 1,209,000 98,867,535 18,996,946 - 15,227,442 411,652 $ 1.550,000 10,000,000 (2) (2) (2) 1 $ (1,700,000) (10,000,000) 8,644 1,618 0 (12,177) 0 $ 49,480,475 1,209,000 98,876.179 18,998,564 0 15,215,265 411,652 (150,000) 0 8,644 1.618 0 (12,177) 0 Subtotal 1 $ 184,343,050 1 $ 11,550,000 $ 11,700,000 $ 1,915 $ 184,191,135 $ 151.915 Cash $ 5,940,425 1 & 3 $ 5,242,164 $ 698,261 5,242.164 Total $ 190,283,475 1 $ 11,550,000 1 1 $ 16,942,164 $ (11,91% $ 184.889.396 1 $ 5,394,079 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 Quints, thereby 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 Quints 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. 30 zo/17 John M. Falconer Date 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 March 2010 Cash Balances - The portfolio size decreased by $5.40 million to end the month at $184.89 million. The major reason for the decrease was $5.8 million spent on debt service payments on March 151. Major Capital Projects payment of approximately $750,000 were made on the La Quinta Fire station 32 Corporate Yard project in march. Investment Activity - The investment activity resulted in an average maturity decreased by 14 days to 172 days at the end of March. The Treasurer follows a buy and hold investment policy and one investment purchases were made in the month to roll over a $10 million Treasury Security. The sweep account earned'$8 in interest income for the month of February and the bank fees for the month were $ 2,050 which resulted in a net decrease of $2,042 in real savings. Portfolio Performance - The overall portfolio performance decreased by one (1) basis point from the prior month and ended at .47% for the month, with the pooled cash investments yielding .50%. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding 1.13% which reflects the current interest rate environment. Looking Ahead 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. 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This approval is done in June of each year. The Investment Advisory Board has been reviewing the Investment Policy for final recommendation to the City Council in June 2010. RECOMMENDATION: Continued review of the Investment Policy for approval by City Council in June 2010 John M. Falconer, Finance Director CITY OF LA QUINTA Investment Policy Fiscal Year 2010/2011 Table of Contents Section Topic page Executive Summary 2 1 General Purpose 4 11 Investment Policy 4 III Scope 4 IV Objectives 4 ► Safety of Principal ► Provide Liquidity ► Yield A Risk -Based Market Rate Of Return V Maximum Maturities 6 VI Prudence 6 VII Authority 7 Vlll Ethics and Conflicts of Interest 7 IX Authorized Financial Dealers and Institutions 7 ► Broker/Dealers ► Financial Institutions X Permissible Deposits and Investments 8 XI Investment Pools 12 XII Payment and Custody 12 XIII Interest Earning Distribution Policy 12 XIV Internal Controls and Independent Auditors 13 XV Reporting Standards 14 XVI Financial Assets and Investment Activity Not Subject to this Policy 14 XVII Investment of Bond Proceeds 15 XIII Investment Advisory Board - City of La Quinta 15 XIX Investment Policy Adoption 16 Appendices Topic Page A Summary of Permissible Deposits and Investments 17 B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19 C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds20 D Segregation of Major Investment Responsibilities 22 E Listing of Approved Financial Institutions 23 F Broker/Dealer Questionnaire and Certification 24 G Request for Proposal for Professional Portfolio Management Firm 28 H Permissible Investment Chart — Professional Portfolio Management Firm 34 1 Investment Management Process and Risk 35 J Glossary 36 11 CITY OF LA QUINTA Investment Policy Fiscal Year 2010/2011 Executive Summary The general purpose of this Investment Policy is to provide the rules, and standards that must be followed in administering the City of La Quinta's deposits and investments. The City's Investment Policy conforms to all state and local statutes and applies to all deposits and investments of the City of La Quinta, City of La Quinta Redevelopment Agency, and the City of La Quinta Financing and Mousing Authorityi s (the"City"). It is the City's policy to deposit and invest public funds in a manner that shall provide: ► Safety of principal; ► Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; ► A risk -based market rate of return. It is the City's policy to hold securities and other investments until maturity. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the portfolio require that a security be sold. Authority to manage the City's investment portfolio is derived from the City Ordinance. Management responsibility for the investment program is delegated to the City Treasurer, who shall establish and implement written procedures for the operation of the City's investment program consistent with the Investment Policy. The Treasurer shall establish and implement a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to all City management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; ► Timely preparation of reliable financial information. The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the independent auditors in connection with the annual audit of the City's Financial Statements. The City Manager, Assistant City Managers, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. The Treasurer will be permitted to invest only in the permissible deposits and investments described in Section X and Appendix A up to the specified maximum allowable percentages 2 and/or dollar limitations and, where applicable, through the bid process requirements. Permissible deposits and investments include, in general: ► FDIC -Insured Checking, Savings, and Sweep Accounts; ► Certificates of Deposit; ► U.S. Government Agency Securities and Federal Government Securities; ► Prime Commercial Paper; ► Local Agency Investment Fund (LAIF); ► Money Market Mutual Funds; ► Corporate Notes; ► Professionally Managed Accounts. The City's deposits and investments are generally limited to three years' maximum maturity. However, the projected amount of funds not expected to be disbursed within five years may be invested in U.S. Treasury bills, notes and bonds maturing between three and five years. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report will display the rates of return on the three-month Bill, six-month W, and the one and to°o-year U.S. Treasury M N©fe, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis. The Investment Policy will be adopted before the end of June of each year. This Executive Summary is only an overview of the City's Investment Policy. Reading this summary does not constitute a complete review, which can only be accomplished by reviewing all of the pages herein. 3 City of La Quinta Statement of Investment Policy July 1, 2010 through June 30, 2011 Adopted by the City Council on June 151 2010 GENERAL PURPOSE The general purpose of this document is to provide the rules and standards that must be followed in administering the City of La Quinta's deposits and investments. 11 INVESTMENT POLICY It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide: ➢ Safety of principal; ➢ Liquidity to meet all of the City's obligations and requirements that may be reasonably anticipated; ➢ A risk -based market rate of return. The Investment Policy conforms to all State and local statutes governing the investment of public funds and sets forth the permissible deposits and investments of the City's funds and the limitations thereon. III SCOPE Except as further detailed in Section XVII, this Investment Policy applies to all deposits and investments of the City of La Quinta, City of La Quinta Redevelopment Agency and the City of La Quinta Financing antl,tfousihg Authorityies (hereafter referred to in this document as the "City"). These funds are reported in the City's Comprehensive Annual Financial Report (CAFR) and include all funds within the following fund types: ► General ► Special Revenue ► Capital Projects ► Debt Service ► Enterprise ► Internal Service ► Trust and Agency ► Any new fund types and fund(s) that may be created. IV OBJECTIVES The objectives of the City's investment activity, in order of priority and importance, are: 1. Safety of Principal Safety of principal is the foremost objective of the City's investment program. !! Investments shall be undertaken in a manner that seeks to ensure the preservation of principal of the overall portfolio in accordance with the permissible deposits and investments. The City shall endeavor to preserve its investment principal by making only permissible deposits and investments, undertaken in a controlled manner to minimize the possibility of loss or misappropriation through. malfeasance or otherwise. Investments not backed by the full faith and credit of the United States Government shall be diversified by allocating assets between different types of permissible investments, maturities, and issuers as a means to mitigate credit risk and interest rate risk. A. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit risk may be mitigated by: ► Limiting investments to investment grade securities as permitted in Section X; ► Diversifying the issuers of the securities in the investment portfolio so that potential losses due to issuer failure or individual securities downgrades may be minimized. B. Interest Rate Risk is the risk that market values of securities in the portfolio will decline due to changes in general interest rates. Interest rate risk may be mitigated by: ► Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and ► Investing operating funds primarily in shorter -term securities. C. Liquidity Risk is the risk that a security cannot be liquidated because of its unique features or structure or because it is thinly traded. Liquidity risk is not a material issue for the City's portfolio because of the permissible deposits and investments (see Section X) and because the City maintains a buy -and -hold policy and holds securities and other investments to maturity. A discussion of the City's investment process and risk is presented in Appendix I. 2. Provide Liquidity The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that may be reasonably anticipated. This is accomplished by structuring the portfolio so that sufficient liquid funds are available to meet anticipated demands. Furthermore, since all possible cash needs cannot be anticipated the portfolio should be diversified and consist of securities with active secondary or resale markets. The City's policy is to hold securities and other investments to maturity. Accordingly, securities shall not be sold prior to maturity with the following exceptions: ► A security with declining credit quality can be sold early to minimize loss of principal; ► Unanticipated liquidity needs of the portfolio require that one or more securities be sold. 5 3. Yield A Risk -Based Market Rate Of Return The City's investment portfolio shall be structured with the objective of yielding a risk - based market rate of return throughout budgetary and economic cycles. Return on investment is less important than the safety and liquidity objectives described above. The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate of return on its investment portfolio. The portfolio's rates of return will be influenced by several factors, including actions by the Federal Reserve Board, the marketplace, and overall economic perceptions and conditions. These factors will not affect yield during the securities' holding period because the City's buy -and -hold policy fixes the securities' yield at the time of purchase. As a basis for comparison only, the Treasurer's monthly reports will display the rates of return on the three-month Bill, six-month Bilj, and one and vito-year U.S. Treasury Dill N e, comparable -period rates for commercial paper, and the yield for the State Treasurer's Local Agency Investment Fund (LAIF). The Treasurer may use these or any other published rates of return that the Treasurer deems appropriate for comparison to the return on the City's investment portfolio. V MAXIMUM MATURITIES It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of market value fluctuations with overall market interest rates. This buy -and -hold policy shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit worthiness or when the liquidity needs of the City require that a security be sold. The buy -and -hold policy requires that the City's investment portfolio be structured so that sufficient liquid funds are available from maturing investments and other sources to meet all reasonably -anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have reliable, diligently prepared cash flow projections. Annually, the Treasurer shall project the amount of funds not expected to be disbursed within five years. For FY 2010/2011, the amount of such funds is projected to be $4 million. Funds up to that amount may be invested in U.S. Treasury bills, notes and bonds maturing between 3 and 5 years. For all other funds, investments are limited to three years maximum maturity, with no more than 25% of surplus funds invested in maturities exceeding two years and less than three years. VI PRUDENCE The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate Code Sections 16045 through 16054. Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall be made with judgment and care - under circumstances then prevailing - which persons of prudence, discretion, and intelligence exercise in the professional management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." 0 VII AUTHORITY Authority to manage the City's investment portfolio is derived from sections 35607 and 35608 of City Ordinance 3.08.010. Management responsibility for the investment program is delegated to the City Treasurer for a period of one year pursuant to the City Council's annual adoption of the Investment Policy. The City Treasurer shall establish written procedures for the operation of the investment program consistent with the Investment Policy. Procedures should include reference to safekeeping, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The City Manager or an Assistant City Manager shall acknowledge in writing all purchases and sales of investments prior to their execution by the City Treasurer. Vill ETHICS AND CONFLICTS OF INTEREST The City Manager, Assistant City Managers, City Treasurer and city employees involved in the City's banking and investment process shall conduct the City's business in an ethical manner and refrain from any activity or relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or relationship shall be reported immediately and in compliance with the procedures set forth in Section 1.40 - Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and, until resolved, the officer or employee shall refrain from participating in the City's business related to the matter. The City Manager, Assistant City Managers, City Treasurer and city employees may conduct personal business with banks, brokers, and other financial institutions that are authorized to conduct business with the City provided that the terms of the activity to the accountholder with the City are the same as those that are available to the public in general. IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Treasurer maintains a listing of financial institutions which are approved for direct investment purposes. In addition a list will also be maintained of approved broker/dealers selected by credit worthiness, who maintain an office in the State of California. 1. Broker/Dealers who desire to become bidders for direct investment transactions must supply the City with the following: ► Current audited financial statements; ► Proof of Financial Industry Regulatory Authority (FINRA) Certification; ► Trading resolution; ► Proof of California registration; ► Resume of Financial broker; and ► Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F) which contains a certification of having read the City's Investment Policy. IN The City Treasurer shall evaluate the documentation submitted by the broker/dealer and independently verify existing reports on file for any firm and individual conducting investment related business. The City Treasurer will also contact the following agencies during the verification process: ► Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1- 800-289-9999). ► State of California Department of Corporations (1-916-445-3062). The City Treasurer maintains a listing of financial institutions which are approved for investment purposes. All Broker/Dealers and financial institutions that provide investment services will be subject to City Council approval. Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S. Treasury Department regulations. Each mutual fund shall provide a prospectus and statement of additional information. 2. Financial Institutions will be required to meet the following criteria in order to receive City funds for deposit or investment (see Appendix E, "Listing of Approved Financial Institutions"): A. Insurance - Public Funds shall be deposited only in financial institutions having accounts insured by the Federal Deposit Insurance Corporation (FDIC). B. Collateral - The amount of the City's deposits or investments not insured by the FDIC —shall be collateralized by securities with market values of 110%, or by mortgages with market values 150%, of the amount of invested funds plus unpaid interest earnings. C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC insured amount shall furnish the City a copy of the most recent Call Report. The City shall not invest in excess of the FDIC insured amount in banking institutions which do not disclose to the city a current listing of securities pledged for collateralization in public monies. X PERMISSIBLE DEPOSITS AND INVESTMENTS Permissible deposits and investments are summarized below. A more comprehensive list is included in Appendix A. Permissible Investments and Limitations (See Appendix A for Additional Information) Maximum Allocation Maximum Maturity Restrictions Checking 8 Savings Accounts FDIC Insured 8 Sweep Accounts 85% Portfolio Current/ Sweep Account:On U.S. Treasuries Demand and/or GSE's <= $250,000, Certificates of Deposit 60% Portfolio 3 Years including interest per institution 0 Permissible Investments and Limitations Maximum Maximum (See Appendix A for Additional Information) Allocation Maturity Restrictions U.S. Treasury Bills, Notes and Bonds, and Government National 100% Portfolio 3 Years �-$4,0000,000 Mortgage Association (GNMA) Securities maturing 3-5 Yrs U.S. Government Agency Securities and Federal Government Securities (except collateralized mortgage obligations (CMO's) or structured notes which contain embedded rate options): - Federal National Mortgage Association (FNMA) $20,000,000 3 Years - Federal Home Loan Bank Notes & Bonds (FHLS) $25,000,000 3 Years - Federal Farm Credit Bank (FFCB) $30,000,000 3 Years - Federal Home Loan Mortgage Corporation (FHLMC) $20,000,000 3 years PrimeCommercial Paper including Temporary Liquidity Guarantee $5,000,000 per Program (T ) 15%n Portfolio 90 Days issuer maximum. Local Agency Investment Fund (LAIF) 30% Portfolio Current / $40 million On Demand per account. Money market mutual funds regulated by the SEC that consist only of US Current / Maintain $1 per Treasury Securities or GSE's and maintain a par value of $1 per share 20% Portfolio On Demand share par value $5,000,000 max Corporate Notes 10% 3 Years per issuer AA rated or better Corporate Notes - Temporary Liquidity Guarantee Program (TLGP) 20% 3 Years $10,000,000 max per issuer, AA rated or better. Professionally Managed Account 10% 3 Years Requires City Council - Approved RFP 1 . Checking, Savings, and Sweep Accounts - The City will only maintain checking, savings, and sweep accounts with FDIC insured financial institutions. As authorized by the City Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a $50,000 target balance may be maintained in conjunction with the checking account. 2. Certificates of Deposit - As authorized in Government Code Section 53649, Certificates of Deposit are fixed term investments which are required to be collateralized from 1 10% to 150% depending on the specific security pledged as collateral in accordance with Government Code Section 53652. There are no portfolio limits on the amount or maturity for this investment vehicle. Collateralization will be required for Certificates of Deposits in excess of the FDIC insured amount. The type of collateral is limited to City authorized investments. Collateral will always be held by an independent third party from the institution that sells the Certificates of Deposit to the City. Evidence of compliance with State Collateralization policies must be supplied to the City and retained by the City Treasurer as follows: A. Certificates of Deposits Insured by the FDIC: The City Treasurer may waive collateralization of a deposit that is federally insured. B. Certificates of Deposit in excess of FDIC Limits: The amount not federally insured shall be 110% collateralized securities or 150% mortgages market value of that amount of invested funds plus unpaid interest earnings. N The City's Investment Policy limits the percentage of Certificates of Deposit to 60% of the portfolio. ➢ The City does not allow investments in CDAR's or negotiable (secondary market) certificates of deposit. 3. U.S. Treasury Bills, Notes and Bonds and Government National Mortgage Associations (GNMA) securities - The City may invest in U.S. Treasury bills, notes, and bonds, and GNMA securities directly issued and backed by the full faith and credit of the U.S. Government. The City's Investment Policy limits investments in U.S. Treasury issues and GNMA's to 100% of the portfolio. ➢ The City's Investment Policy does not allow investments in local and state indebtedness. 4. U.S. Government Agency Securities and Federal Government Securities - The City may invest in securities issued by U.S. Government instrumentalities and agencies (commonly referred to as government sponsored enterprises or GSE's). These securities are not backed by the full faith and credit of the U.S. Government. Publicly owned GSE's include Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's include the Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank (FLB) and Federal Intermediate Credit Bank (FICB). The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and FFCB. For Fiscal Year 200-9,001204 1 a , the maximum face amount per issuer is $20 million for FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, no more than 30% of the portfolio surplus may be invested in all GSE's combined with a maximum $10 million face amount per purchase. 5. Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion of the City's portfolio may be invested in commercial paper of the highest rating (A-1 or P- 1) as rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding investments in commercial paper based on the financial strength of the corporation and the size of the investment. The City's Investment Policy permits investments in commercial paper with the following limitations: A. Maximum 15% of the portfolio. B. Maximum maturity of 90 days. C. Maximum of $5 million per issuer These limitations are more restrictive than the State code allowed amounts of 25% of the total portfolio with maturities up to 270 days with no per -issuer limitations. The City is also permitted to invest in commercial paper issued under the FDIC Temporary Liquidity Guarantee Program subject to the aforementioned commercial paper limitations. 6. State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1 and by LAW procedures, local government agencies are each authorized to invest a maximum of $480 million per account in this investment program administered by the California State Treasurer. 10 The City's investment in LAIF is allowable as long as the average maturity of its investment portfolio does not exceed two years, unless specific approval is authorized by the City Council. The City has two accounts with LAIF and limits investment to 30% of the portfolio. 7. Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local agencies are authorized to invest in shares of beneficial interest issued by diversified management companies (mutual funds) in an amount not to exceed 20% of the agency's portfolio. There are a number of other qualifications and restrictions regarding allowable investments in corporate notes and shares of beneficial interest issued by mutual funds which include (1) attaining the highest ranking or the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) having an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations and with assets under management in excess of five hundred million dollars ($500,000,000). The City's Investment Policy only allows investments in mutual funds that are money market funds maintaining a par value of $1 per share that invest in direct issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio. 8. Corporate Notes - As authorized in Government Code Section 53601 (j), local agencies may invest in corporate notes. The notes must be issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any other state and operating in the United States. The City's Investment Policy allows investment in corporate notes authorized by the Government Code with the following limitations: ► Maturities shall not exceed three years from date of purchase. ► Eligible notes shall be regularly quoted and traded in the marketplace. ► Eligible notes shall be rated "AA"or better. ► Total investment shall not exceed 10% of the portfolio for non- Temporary Liquidity Guarantee Program (TLGP) Corporate Notes and 20% of the portfolio for TLGP Corporate Notes, and ►. The maximum aggregate investment shall not exceed $5 million face amount for each issuer. This is more restrictive than the State code allowed amounts of 30% of the total portfolio with maturities up to five years with no per -issuer limitations. The City is also permitted to invest in corporate notes issued under the FDIC Temporary Liquidity Guarantee Program subject to the aforementioned corporate note limitations, except that corporate notes issued under the Temporary Liquidity Guarantee Program or otherwise backed by the United States government shall be limited to 20% of the portfolio and the maximum aggregate investment for such notes shall not exceed $10 million face amount for each issuer. 9. Professionally Managed Account(s) - The City Treasurer may place up to 10% of the portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be approved by the City Council based upon the City Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in Appendix G. The PPMF shall have: (a) An established professional reputation for asset or investment management; 11 (b) Knowledge and working familiarity with State and Federal laws governing and restricting the investment of public funds; (c) Substantial experience providing investment management services to local public agencies whose investment policies and portfolio size are similar to those of the City; (d) Professional liability (errors and omissions) insurance and fidelity bonding in such amounts as are required by the City; (e) Registration with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Before engagement by the City and except as may be specifically waived or revised, the PPMF shall commit to adhere to the provisions of the City's Investment Policy with the following exceptions: (f) The PPMF may be granted the discretion to purchase and sell investment securities in accordance with Appendix I of this Investment Policy; (g) The PPMF is not required to adhere to the buy -and -hold policy of the City's Investment Policy, and; (h) The PPMF does not need City Manager or City Treasurer approval to make permissible investments as detailed in column 8 of Appendix H of this Investment Policy. XI INVESTMENT POOLS There are three (3) types of investment pools: ► State -run pools (e.g., LAIF); ► Pools that are operated by a political subdivision where allowed by law and the political subdivision is the trustee (e.g., County Pools); ► Pools that are operated for profit by third parties. The City's Investment Policy permits investment only in pools authorized in Section X. XII PAYMENT AND CUSTODY The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain appropriate evidence of the City's ownership of securities and other eligible investments. Such custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller only after receiving evidence that the City has legal, record ownership of the securities. Even though ownership is evidenced in book -entry form rather than by actual certificates, this procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of securities. XIII INTEREST EARNING DISTRIBUTION POLICY Interest earnings are generated from pooled investments and specific investments. 1. Pooled Investments - It is the general policy of the City to pool all available operating cash of the City of La Quinta, La Quinta Redevelopment Agency and La Quinta Financing pnd Jous K, Authorityf— and allocate interest earnings, in the following order, as follows: 12 A. Payment to the General Fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. B. Payment to the General Fund of a management fee equal to 5% of the annual pooled cash fund investment earnings. C. Payment to each fund of an amount based on the average computerized daily cash balance included in the common portfolio for the earning period. 2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and expenses to that particular fund. XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR The City Treasurer shall establish a system of internal controls to accomplish the following objectives: ► Safeguard assets; ► The orderly and efficient conduct of its business, including adherence to management policies; ► Prevention or detection of errors and fraud; ► The accuracy and completeness of accounting records; and ► Timely preparation of reliable financial information. While no internal control system, however elaborate, can guarantee absolute assurance that the City's assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance that management of the investment function meets the City's objectives. The internal controls shall address the following: Control of collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Separation of transaction authority from accounting and record keeping. By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 3. Custodial safekeeping. Securities purchased from any bank or dealer including appropriate collateral (as defined by State Law) shall be placed with an independent third party for custodial safekeeping. 4. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. 5. Clear delegation of authority to subordinate staff members. Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is 13 contingent on the various staff positions and their respective responsibilities as outlined in the Segregation of Major Investment Responsibilities appendices. 6. Written confirmation or telephone transactions for investments and wire transfers. Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions shall be supported by written communications or electronic confirmations and approved by the appropriate person. Written communications may be via fax if on letterhead and the safekeeping institution has a list of authorized signatures. Fax correspondence must be supported by evidence of verbal or written follow-up. 7. Development of a wire transfer agreement with the City's bank and third party custodian. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. The System of Internal Controls developed by the City, shall be reviewed annually by the independent auditor in connection with the annual audit of the City's Financial Statements. The independent auditor's letter on internal control over financial reporting and compliance as it pertains to cash and investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and investment activities and the City Treasurer's response shall be provided to the City's Investment Advisory Board for their consideration. Following the completion of each annual audit, the independent auditor shall meet with the Investment Advisory Board and discuss the auditing procedures performed and the review of internal controls for cash and investment activities. See Appendix D, "Segregation of Major Investment Responsibilities." XV REPORTING STANDARDS The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment Advisory Board that includes all cash and investments under the authority of the Treasurer. The Treasurer's Report shall summarize cash and investment activity and changes in balances and include the following: ► A certification by the City Treasurer. ► A listing of purchases and sales/maturities of investments. ► Cash and Investments categorized by authorized investments, except for LAIF which will be provided quarterly and show yield and maturity. ► Comparison of month end actual holdings to Investment Policy limitations. ► Current year and prior year monthly history of cash and investments for trend analysis. ► Balance Sheet. ► Distribution of cash and investment balances by fund. ► A year to date historical cash flow analysis and projection for the next six months. ► A two-year list of historical interest rates. 14 XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY The City's Investment Policy does not apply to the following: ► Cash and Investments raised from Conduit Debt Financing; ► Funds held in trust in the City's name in pension or other post -retirement benefit programs; ► Cash and Investments held in lieu of retention by banks or other financial institutions for construction projects; ► Short or long term loans made to other entities by the City or Agency; and Short term (Due to/from) or long term (Advances from/to) obligations made either between the City and its funds or between the City and Agency. XVII INVESTMENT OF BOND PROCEEDS The City's Investment Policy shall govern bond proceeds and bond reserve fund investments. California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in accordance with bond indenture provisions which shall be structured in accordance with the City's Investment Policy. Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage calculations as required and return excess earnings to the US Treasury from investments of proceeds of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted with an outside source to provide the necessary technical assistance to comply with this regulation. Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and records will be kept in a fashion to facilitate the calculations. The City's investment position relative to the new arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the City's position to continue maximization of yield and to rebate excess earnings, if necessary. XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA The Investment Advisory Board (IAB) is a standing board composed of five members from the public that are appointed by the City Council. Background information will be requested and potential candidates must agree to a background check and verification. 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. All board members shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any activities, interests, or relationships that may be, or have the appearance of, a conflict of interest. The IAB must meet at least quarterly, but usually meets monthly, to 1. Review at least annually the City's Investment Policy and recommend appropriate changes; 2. Review monthly treasury report and note compliance with the Investment Policy and adequacy of cash and investments for anticipated obligations; 3. Receive and consider other reports provided by the City Treasurer; 15 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. The IAB will report to the City Council after each meeting either in person or through correspondence at a regular City Council meeting. See Appendix B: "Investment Advisory Board Provisions". XIX INVESTMENT POLICY ADOPTION The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board and the City Treasurer. The Investment Advisory Board will forward the Investment Policy with any revisions to the City Manager and City Attorney for their review and comment. A joint meeting will be held with the Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment Policy and any comments prior to submission to the City Council for their consideration. 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C > O O C 0 v O m D 'Z0 m N C .0 O m._ D 0 N U1 N a0 a:= m m C m m rJ-a c o _c "moo my v a o E o0 E 0 `. C O.N Ny clU U N� ME O'd J'c7 c >- $ o`mm m Uo.0 Z m NE c` vc N ArymW> tLL J Eco6 a� 00 y kc 0 - '0 O> moo N >m 6 w 0 E aoc mmL 05 EC.O mDm E C v E N v Lcm mN 0v N2.m OZ 'a me" U N ¢°� vv > 3o av E E v 0 c si o a E N ° o m0 E YocD E «v 00 o$a uc a yo Mc EN oa a`� E 2w n`� oti9 v v m «� o o c d « v o f o JN a E rna h ca= L 6 m p D m . N smD �E Na a a = `o E? a Nc Do m1)it cF.-. p.m n .- v mm �a vD t]D 0 c =oo v U Y G N p 2 �� m v L E m m C N^ 6 T� LU O_ N m O m .ono ti O vU E 0 v mU m Um a r U D Q U vco v L N N N d IL N t0 V N 10 h C C a o 0 m i i 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. Applicants for the board should have a background in finance, preferably with knowledge and/or experience in markets, controls and accounting for securities. 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. E. To promote continuity, the expiration of the terms of the members of the board shall be staggered. The term of service is three years, with one or two terms expiring each year. 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 cancelled 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) 20 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 SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES Function Develop and Recommend Modifications to City's Formal Investment Policy Review City's Investment Policy and Recommend City Council Action Adopt Formal Investment Policy Implement Formal Investment Policy Review Financial Institutions & Select Investments Acknowledge Investment Selections Execute Investment transactions Confirm Wires (if applicable) Record Investment Transactions in City's Accounting Records Investment Verification (match broker confirmation to City investment records) Reconcile Investment Records to Accounting Records and Bank Statements Reconcile Investment Records to Treasurers Report of Investments Security of Investments at City Security of Investments outside City Review Internal Control Procedures 22 Appendix D Responsible Parties Investment Advisory Board and City Treasurer City Manager and City Attorney City Council City Treasurer City Treasurer City Manager or an Assistant City Manager City Treasurer or City Manager Accounting Manager or Financial Services Assistant Accounting Manager or Financial Services Assistant City Treasurer and Financial Services Assistant Financial Services Assistant Accounting Manager Accounting Manager or Senior Secretary Third Party Custodian External Auditor Appendix E LISTING OF APPROVED FINANCIAL INSTITUTIONS 1. Banking Services Wells Fargo Bank, Government Services, Los Angeles, CA 2. Custodian Services Bank of New York/Mellon, Los Angeles, CA 3. Deferred Compensation International City/County Management Association Retirement Corporation 4. Broker/Dealer Services Banc of America Securities, San Francisco, CA Morgan Stanley, San Rafael, CA CitiGroup, Costa Mesa, CA 5. Government Pool State of California Local Agency Investment Fund City of La Quinta Account La Quinta Redevelopment Agency Account 6. Bond Trustees 1991 City Hall Revenue Bonds - US Bank 1991 RDA Project Area 1 -US Bank 1992 RDA Project Area 2 - US Bank 1994 RDA Project Area 1 -US Bank 1998 RDA Project Area 1 &2 — US Bank 2001 RDA Project Area 1 — US Bank 2002 RDA Project Area 1 — US Bank 2003 RDA Project Area 1 — US Bank Assessment Districts — US Bank No Changes to this listing may be made without City Council approval 23 BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Appendix F 2. Address: 3. Telephone: 1_) (_ ) 4. Broker's Representative to the City (attach resume): Name: Title: Telephone: 1 1 5. Manager/Partner-in-charge (attach resume): Name: Title: Telephone: 6. List all personnel who will be trading with or quoting securities to City employees (attach resume) Name: Title: Telephone: 7. Which of the above personnel have read the City's Investment Policy? 8. Which instruments are offered regularly by your local office? (Must equal 100%) % U.S. Treasuries % BA's % Commercial Paper % CD's % Mutual Funds Agencies (specify): • Repos • Reverse Repos • CMO's % Derivatives • Stocks/Equities • Other (specify): 9. References -- Please identify your most directly comparable public sector clients in our geographical area. Entity Contact 24 Entity Contact Telephone () Telephone () Client Since Client Since 10. Have any of your clients ever sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? If so, explain. 11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Have any of your employees been so investigated? If so, explain. 12. Has a client ever claimed in writing that you were responsible for an investment loss? Yes No If yes, please provide action taken Has a client ever claimed in writing that your firm was responsible for an investment loss? Yes No If yes, please provide action taken Do you have any current or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken Does your firm have any current, or pending complaints that are unreported to FINRA? Yes No If yes, please provide action taken 13. Explain your clearing and safekeeping procedures, custody and delivery process. Who audits these fiduciary responsibilities? Latest Audit Report D 25 14. How many and what percentage of your transactions failed? Last month? % $ Last year? % $ 15. Describe the method your firm would use to establish capital trading limits for the City of La Quinta. 16. Is your firm a member in the S.I.P.C. insurance program? Yes No If yes, explain primary and excess coverage and carriers. 17. What portfolio information, if any, do you require from your clients? 18. What reports and transaction confirmations or any other research publications will the City receive? 19. Does your firm offer investment training to your clients? Yes No 20. Does your firm have professional liability insurance? Yes_ If yes, please provide the insurance carrier, limits and expiration date. No 21. Please list your FINRA/NASD Registration Number 22. Do you have any relatives who work at the City of La Quinta? Yes No If yes, Name and Department 23. Do you maintain an office in California? Yes No 24. Do you maintain an office in La Quinta or Riverside County? Yes No 25. Please enclose the following: ► Latest audited financial statements. ► Samples of reports, transaction confirmations and any other research/publications the City will receive. ► Samples of research reports and/or publications that your firm regularly provides to clients. ► Complete schedule of fees and charges for various transactions. 26 'CERTIFICATION' *CERTIFICATION* * * 1 hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons, outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with financial transactions conducted with our firm. By signing this document the City of La Quinta is authorized to conduct any and all background checks. Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my knowledge. Broker Date Sales Manager and/or Managing Partner*_ Date Title 27 Appendix G Request for Proposals Professional Portfolio Management Firm City of La Quinta, CA The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the provision of a discretionary investment management services for City of La Quinta, CA. The portfolio to be managed of the invested assets is will be approximately 10% of the City's investment portfolio and will be invested between 0 - 3 years. The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information. Questions regarding this RFP should be directed to: Name: Title: City of: Address: City, State, Zip Code: Phone Number: John M. Falconer Finance Director/Treasurer La Quinta, CA P.O. Box 1504 La Quinta, CA 92247-1504 (760)777-7150 I. CRITERIA FOR EVALUATION AND SELECTION ■ Experience of the firm in providing services to public sector entities of similar size and with similar investment objectives; ■ Professional experience and qualifications of the individuals assigned to the account; ■ Portfolio management resources, investment philosophy and approach; ■ Responsiveness to the RFP, communicating an understanding of the overall program and services required; ■ Reporting capabilities; ■ Fees. 11. SELECTION TIMETABLE A. [Month, Day and Year] Proposals due by [Time] PST. B. [Month, Day and Year] Proposals evaluated: to be determined C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection and awards contract. III. FORMAT FOR PROPOSALS Please format your response to this RFP in the following manner: A. Organization RK 1. Describe your organization, date founded, ownership and other business affiliations. Provide number and location of affiliated offices. Specify the number of years your organization has provided investment management service. 2. Describe your firm's revenue sources (e.g., investment management, institutional research, etc.) and comment on your firm's financial condition. 3. Within the past three years, have there been any significant developments in your organization (e.g., changes in ownership, new business ventures)? Do you expect any changes in the near future? 4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation involving your organization, any officer, or employee at any time in the last ten years. 5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage. Include dollar amount of coverage. B. Personnel 1. Identify the number of professionals employed by your firm by classification. 2. Provide an organization chart showing function, positions, and titles of all the professionals in your organization. 3. Provide biographical information on investment professionals that will be involved in the decision -making process for our portfolio, including number of years at your firm. Identify the person who will be the primary portfolio manager assigned to the account. 4. Describe your firm's compensation policies for investment professionals and address any incentive compensation programs. C. Assets Under Management 1. Summarize your institutional investment management asset totals by category for your latest reporting period in the following table: Governmental Governmental Pension Non Governmental Pension Number of Clients S S S Operating Funds Number of Other Restrictive Clients Funds S NGt Ap ble Nei App:leablef' nPp.;�.� Net A 4ieable Not ieable `!% 29 Corporate $ Net Applieable Net App .ea-.e p NIA High Net Worth Client $ Net Applicable Not Applie-ableN,' ! Wi N/At Endowmental/Foun- $ Net nppa dation �li.,�ble Net-Applieablet�UiA NIA 2. Provide the number of separate accounts whose portfolios consist of operating funds. 3. List in the following table the percentage by market value of aggregate assets under all governmental accounts under management for your latest reporting period: Type of Asset Percent by Market Value U.S. Treasury securities Federal Agency obligations Corporate securities rated AAA -AA Corporate securities rated A Corporate securities rated BBB or lower Other (specify ► 4. Describe the procedures that your firm has in place to address the potential or actual credit downgrade of an issuer and to disclose and advise a client of the situation. 5. Provide data on account/asset growth over the past five years. Indicate the number of government accounts gained and the number of government accounts lost. 6. List your five governmental largest clients. Identify those that are exclusively operating fund relationships and/or those that are other relationships (e.g., bond fund, retirement fund). 7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules). 8. Provide proof of State of California Registration, if your firm is not eligible for SEC registration. 9. Provide a sample contract for services. 30 D. Philosophy/Approach 1 . Describe your firm's investment philosophy for public clients, including your firm's philosophy regarding average duration, maturity, investment types, credit quality, and yield. 2. Describe in detail your investment process, as you would apply it to City of La Quinta, CA's portfolio. 3. What are the primary strategies for adding value to portfolios? 4. Describe the process you would recommend for establishing the investment objectives and constraints for this account. 5. Describe in detail your process of credit risk management, including how you analyze credit quality, monitor credits on an ongoing basis, and report credit to governmental accounts. 6. Describe your firm's trading methodology. 7. Describe your firm's decision -making process in terms of structure, committees, membership, meeting frequency, responsibilities, integration of research ideas, and portfolio management. 8. Describe your research capabilities as they would pertain to governmental accounts. What types of analysis do you use? 9. Describe the firm's approach to managing relationships with the broker -dealer community. E. Portfolio Management 1. Are portfolios managed by teams or by one individual? 2. What is the average number of accounts handled per manager? 3. Which professional staff member will be the primary client contact for City of La Quinta, CA? 4. How frequently are you willing to meet with us? 5. Describe procedures used to ensure that portfolios comply with client investment objectives, policies, and bond resolutions. F. Fees Charged 1. Please include a copy of your firm's fee schedule applicable to this RFP. 2. Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 31 3. Is there a minimum annual fee? G. Performance Reporting 1. Please report on all accounts under $100 million. 2. Please provide performance history for governmental accounts for the last five years. 3. Please provide risk measurements for governmental accounts for the last five years. 4. Indicate whether your returns are calculated and compiled in accordance with the Association for Investment Management and Research (AIMR/CFA Institute) standards. 5. Do your reports conform to the State of California reporting standards? Are you willing to customize your reports to meet our specifications? 6. How will you notify us of investment transactions? 7. Are confirmations of investment transactions sent directly by the broker/dealer to the client? 8. Do your reports include rating information on investments which is required by GASB 40? H. References Provide a list of at least five (5) client references in California. References should be public agencies with portfolio size and investment objectives similar to City of La Quinta, CA. Include length of time managing the assets, contact name, and phone number. I. Insurance Requirements Exhibit A defines the insurance requirements that will need to be met prior to the [Board/Council]'s approval of any agreement for services. J. Submittal of proposals 1. Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing the caption RFP for (City of La Quinta, CA) and addressed to: City of La Quinta, CA P.O. Box 1504 La Quinta, CA 92247-1 504 Attention: John Falconer, Finance Director/Treasurer 2. Proposal must be received no later than [Time] PST on [Month, Day, and Year]. 32 3. Proposals should be verified before submission. The City of La Quinta, CA shall not be responsible for errors or omissions on the part of the respondent in preparation of a proposal. The City of La Quinta, CA reserves the right to reject any and all proposals, to wave any irregularities, or informalities in the proposals, and to negotiate modifications to any proposal. Enclosures: Investment Policy Treasurers Report 33 •i a GI a a all E LL ol m 0 0 o E LL 0 0 as V— m y m O Z O O Z Z O Z O O Z Z N O y Z N N y y y y N O m Z N N d m N N d m N d d d y y y y Y y y y} y y } 2.2 Q q C m N O � a` m n= d 0 oaZZZZZZZZZZZ}...0} 0 0 0 0 0 0 0 0 0 0 0 m v m a m m m v m 0 0 0 Q U `m d c m m n d n E U Q`0`o QQ QQ0 :0 C� d EC o 0 5 o— o 0 0 0 0 0 0 0 0 0 0= 0 o O O O 0 0 O o a - Q" C C O O Uw ZZ ZZZZZZ- ZZZZ� �ZZ a .0,p 0 0 0 C d o E� m m 55 0 0 a 0 m 0 d m 0 0 d>> 0-- d o s a m a ... m m m o d m 0 N ae 0 Z 0 0 Z Z o Z W d d o ... Z P- 0 N 0 0 N Z 0 0 0 Z Z 0200 Z O N N o 0 Z Z N N a Q J O O o a` 00 N N E rvami amimaaoo amiowoow m w'o m p> m ,, Z Z Z Z Z pNj pNj O N N N N N N N N N Cm a ON ° L ~ J N Y N N ° 0 C d E d N d N C U c�.MEE m 4 d N c y U a Q cm uia?mEOc N m �p U U—�pp Y. U j d N d av°5m y 2. Z N vi N C J U m J C p] y �R U �d 0 m C j u ° Q E'E E o u yU mU K m c o Ls c a N m m�0s E c E m m E mNNc�m 'onm�m m > (� C 0 min v><nromm M U n N T `° 34 Appendix I Investment Management Process and Risk Except as provided for in Section 27000.3, Government Code Section 53600.3 declares - 'a r tee each person, treasurer, or governing body authorized to make investment decisions on behalf of local agenciesl to be a 9 trustees a€e subject to the prudent investor standard. These persons shall act with care, skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing public funds is to safeguard principal; secondly, to meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds (Government Code Section 27000.5 specifies the same objectives for county treasurers and board of supervisors). Risk is inherent throughout the investment process. There is Fisk assigned to ^^;' investment `risk a ocYateclty{ th.anyoim et tment activity as well as and opportunity risk related to inactivity. Market risk is derived from exposure to overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure of the insurer of a security. The market value of a security varies inversely with the level of interest rates. If an investor is required to sell an investment with a five percent yield in a comparable seven percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on the amount of time until maturity. Purchasing certain allowable securities with a maturity of greater than five years requires approval of the governing board (see Government Code Section 536011. Part of that approval process involves assessing and disclosing the risk and possible volatility of longer -term investments Another element of market risk is liquidity risk. Instruments with unique call features, or special structuresfl or those issued by little known companies` are examples off storyfbonds .art aye often thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more difficult and, consequently, the securities' marketability and price are discounted. However, under certain market conditions, gains are also possible with these types of securities. Default risk essaFs when iepresents'the pa srbt rN#_ita the borrower may is be unable to repay the obligation a scheduled. Generally, securities issued by the federal government and its agencies are considered the most secure, while securities issued by private corporations or negotiable certificates of deposit issued by commercial banks have a greater degree of risk. Securities with additional credit enhancements, such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits are somewhere between the two on the risk spectrum. The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased with the intent and capacity to hold that security until maturity. At times, market forces or operations may dictate swapping one security for another or selling a security before maturity. Continuous analysis and fine tuning of the investment portfolio are considered prudent investment management. [... I The Government Code contains specific provisions regarding the types of investments and practices permitted after considering the broad requirement of preserving principal and maintaining liquidity before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe investment instruments to better ensure a prudently managed portfolio worthy of public trust. Chapter II. Fund Management Local Agency Investment Guidelines 20G7 O Issued by California Debt and Investment Advisory Commission 35 Appendix J GLOSSARY (Adopted from the Municipal Treasurers Association) The purpose of this glossary is to provide the reader of the City of La Quinta investment policies with a better understanding of financial terms used in municipal investing. AGENCIES: Federal agency securities and/or Government -sponsored enterprises. ASKED: The price at which securities are offered. BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large -denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of La Quinta. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. CONDUIT FINANCING: A form of Financing in which a government or a government agency lends its name to a bond issue, although it is acting only as a conduit between a specific project and bond holders. The bond holders can look only to the revenues from the project being financed for repayment and not to the government or agency whose name appears on the bond. COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). 36 DISCOUNT: The difference between the cost price of a security and its maturity when quoted 3. FLBs (Federal Land Bank Bonds) - Long-term at lower than face value. A security selling mortgage credit provided to farmers by Federal below original offering price shortly after sale also Land Banks. These bonds are issued at is considered to be at a discount. irregular times for various maturities ranging from a few months to ten years. The DISCOUNT SECURITIES: Non -interest bearing minimum denomination is $1,000. They carry money market instruments that are issued a semi-annual coupons. Interest is calculated on discount and redeemed at maturity for full face a 360-day, 30 day month basis. value, e.g., U.S. Treasury Bills. 2311 DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters. 5 1. FNMAs (Federal National Mortgage Association) - Like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. 2. FHLBs (Federal Home Loan Bank Notes and Bonds) - Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies, and mortgage -lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. 37 FFCBs (Federal Farm Credit Bank) - Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three- and six-month maturities. The FFCB issues larger issues (one to ten year) on a periodic basis. These issues are highly liquid. FICBs (Federal Intermediate Credit Bank Debentures) - Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360- day, 30-day month basis. 6. FHLMCs (Federal Home Loan Mortgage Corporation) - a government sponsored entity established in 1970 to provide a secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Principal and interest is paid monthly. Other federal agency issues are Small Business Administration notes (SBA's), Government National Mortgage Association notes (GNMA's), Tennessee Valley Authority notes (TVA's), and Student Loan Association notes (SALLIE-MAE's). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit through December 31, 2013. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open - market operations. FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LAIF (Local Agency Investment Fund) - A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $50,000,000 for any agency. The City is restricted to a maximum of ten transactions per month. It offers high liquidity because deposits can be converted to cash in 24 hours and no interest is lost. All interest is distributed to those agencies participating on a proportionate share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains an amount for reasonable costs of making the investments, not to exceed one-half of one percent of the earnings. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller -borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve BE Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of all cash and securities under the direction of the City Treasurer, including Bond Proceeds. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -registered securities broker -dealers, banks and a few unregulated firms. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves. REVERSE REPURCHASE AGREEMENTS (RRP or RevRepo) - A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security"buyer" in effect lends the"seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RRP extensively to finance their positions. Exception: When the Fed is said to be doing RRP, it is lending money that is increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See Uniform Net Capital Rule. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative -based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SURPLUS FUNDS: Section 53601 of the California Government Code defines surplus funds as any money not required for immediate necessities of the local agency. The City has defined immediate necessities to be payment due within one week. TREASURY BILLS: A non -interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. TREASURY BONDS: Long-term coupon -bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term coupon -bearing 39 U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1 ; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. UNIFORM PRUDENT INVESTOR ACT: The State of California has adopted this Act. The Act contains the following sections: duty of care, diversification, review of assets, costs, compliance determinations, delegation of investments, terms of prudent investor rule, and application. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. all INVESTMENT ADVISORY BOARD Meeting Date: May 12, 2010 TITLE: Month End Cash Report, April 2010 and Other selected Financial Data 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 W (7 W (7 CJ moo pi W W mr? ' ai bm nm m M m b N m V CD O Ib0 O W b b b m ° j p0 OO 00 O O O O 00 m N N t0 m r N N6 W P m q N N 0 0 o 0 0 W N W N N N N m 0 p b 0 V 8 O O O O O m W n W n n b r W m P 16 U -6 N W O m O W m b LL m O m N m O O b p O A O O 0 16 ai of of m m W W �LLN N N N N p V g m m m W M eri rni n N q W O m 0 0 O O 0 0 3m = LL- n N 0 r N n N O N p of ro m 3xm m W W m o n w b m m m q a LL y m (y N N W U] W O O b W O =y Ni Oi (o N N i0 3 m N N n N N N m Ndm NDOmNN "b .6. O i° � 0 N O h 3" c n W N N_ q O ct N Y W q q W O p b m r t Q N n N N E E X Om OUJO. O. a F W Q Q W m 0 9 Q CN N a c v 5 q L Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) PMIA Performance Report LL to Hy Yi .d* Z,"n: _ Quarter to Date Yl01 Average MatuntyW Wona s 4/14/2010 0.55 0.57 205 4/15/2010 0.54 0.57 206 4/16/2010 0.54 0.57 207 4/17/2010 0.54 0.57 207 4/18/2010 0.541 0.56 207 4/19/2010 0.54 0.56 204 4/20/2010 0.54 0.56 207 4/21/2010 0.54 0.56 208 4/22/2010 0.54 0.56 209 4/23/2010 0.54 0.56 212 4/24/2010 0.54 0.56 212 4/25/2010 0.54 0.56 212 4/26/2010 1 0.54 0!561 206 4/27/2010 1 0.541 0.56 206 'Daily yield does not reflect capital gains or losses LAIF Performance Report Quarter ending 03/31/2010 Apportionment Rate: Earnings Ratio: Fair Value Factor: Daily: Quarter To Date: Average Life: 0.56% .00001526772794093 1.001183091 0.55% 0.56% 213 PMIA Average Monthly Effective Yields Mar 2010 0.547% FEB 2010 0.577% JAN 2010 0.558% Pooled Money Investment Account Portfolio Composition $69.1 Billion 03/31/10 Corporate Bon 0.18% Commercial Paper 6.98% Time Deposits 5.86% CDs/BN; 10.93% Loans 16.34% Mortgages Agencies 14.29% Treasuries 44.23% 3 Recent Bill Auction Results rage i or i TrasuryDirect Iluma , ms4wfooal nr olncen nls, Dale RBYa R eleu auc rUa� Rer. LL in, rlion Re=urts Recent Bill Auction Results seanruy Issue Matoruy Discount love.ol eat vrcc cusID Term D ate Data Rate I Rate % Per S100 13-WEEK 05 06 20" 08-05-2010 0.16E DA67 99.9.5M2 912195V24 26 WEEK 05-06-2010 11-14-2010 0.24E 0.249 99 A26131 912195W56 4-WEFK 04 29-2010 OS-21-2010 0.130 0.132 99,98988, 91 DOSUS8 56-DAY 04 29-2010 06-24-2010 0.155 0,157 99.975889 912295UV1 13-WEEK 04-29-2010 02 39 20ID 0,150 D.152 99.962063 91271M74 26-WEEK 04-29-2010 to 28-201U 0,240 0,244 99.878667 91279SW49 4-WEEK 04 22-2010 05-20-2010 R140 0,142 99.M ILL 912795URO 56-DAY 04 224010 06 12 2010 0.150 0.152 99,976667 912795UU3 13-WEEK 04 22- 010 0I-22-2030 0.149 0.147 99.963347 91D95U22 26-WEEK 0442-2010 10 21-2010 0.220 0.223 99.8811278 912295UN2 4-WEEK 04-15-2010 OS-13-2010 0,145 0.34] 99.983/22 9II/95UQ2 56 DAY 04-15-2010 06 0-2030 0,150 0.152 99.976667 912191.fa 13-WEEK 04-15-2010 02-15-2010 0.155 0.152 99.96DS19 932295UY5 26-WEEK 04-15-2030 10 14-2010 0,240 0.244 99,878667 912795W31 4-WEEK 04-08-2010 05-06-2010 0.160 0.162 99,98,556 912/951141 56 DAY 04-08-2010 06 03 201D 0.165 0, 162 99.974333 912295L68 13-WEEK 04-08-2010 02-08-2010 0.125 0.128 99,955164 912295UW9 26-WEEK 04-D-2010 10 01 2010 0.265 0.269 99,666028 912195W23 52-WEEK 04-0:-2010 04-07 2011 0,485 0 494 99.509611 912295VD0 10 -DAY 04 05-2010 04-15-2010 0.170 0.122 99.995278 912795UMI 10 DAY 04-012010 04-19-Nit 0.150 0.152 99892500 912295Y54 4WEEK 0401-2030 04 Q92um 0.1 so 0.152 99188333 912795U44 56 DAY 04 01 2010 05 27 2010 0,160 0.162 99,9nill 9127951ISS 13-WEEK 04 012010 02'01'2D R 0.145 0,142 iosi,3342 91279SU66 26-WEEK 04 01 2010 09 30 2M 0.240 0.244 99.828662 912295VC2 4 WEEK 03 25-2010 04-22-2010 0.105 0.106 99.991833 912795UN9 56 DAY 03 25-2010 05 20-2010 MIR 0.132 99,979778 912795URO 13 WEEK 0325-2010 0624-2010 KISS 0.152 99.960819 912795UV1 26-WEEK 03-25-2010 09 23 2010 0.240 0,244 99 A286E2 91279SU90 4-WEEK 03-18 2010 04-15 2010 0.135 0,132 99.989500 912,95UM1 56 DAY 03-18-2010 05-13-2010 0.145 0.142 99.922444 912795UQ2 13-WEEK 03-IB-2010 06-122010 0.165 1 99.956,92 91295UU3 26-WEEK 03-18-2010 09-16 2010 0.240 0244 99A78662 912795VO4 4-WEEK 03-11-2010 04-08-2010 0.130 0.112 99.991444 9327951,33 56 DAY 03-11-2010 05 06 2010 0.145 0,142 99.922444 912Y95U41 13-WEEK 03-11-2010 06-10-2010 0. 150 0,152 99.962083 912295U36 26-WEEK 03-11-2010 09-09 2010 0.205 0.206 99.896361 912295VA6 52-WEEK 03-11-2010 03-10-2011 0.325 0.381 99.620833 912295V99 4-WEEK 03 04-2010 04-01 2010 0 080 0,081 99.993728 912995UL3 56-DAY 03 04-2010 04-29-2010 0.12E 0.12] 99 980556 912295UP4 Effective with the 11/2/98 auction, all bills are auctioned using the single -priced rnethed. roulado npnnformOVon Act I Law K Guidance I arvavy 6 Legal farg e5 1 WYL t. 11cru, G cm11 C 5 I A, ce,hol ty I Deis QneOry us. Deporin38nt n(01e Treason.-Hrn'eau of tho Public Doff 4 http://www.treasurydirect.gov/RI/OFBills 5/3/2010 Recent Note, Bond, and TIPS Auction Results Page 1 of 1 TreasuryDirect flame , NlyprtteRal ` A aceo Ifements, Sox, & RervMs , Larest Auction D<II Re.znI rveto. Bonn, and 'i I.O` radon RfsJII Recent Note, Bond, and TIPS Auction Results lueue Maturity line ... I Yield Ptltt CUSIP Secunty Term Type Oat. ORD, Rete el b Per$I.. 2-YEAR NOTE 04-30-2010 04-30-201.2 1.000 IT24 99.95260A 912828NB2 5-YEAR TIPS 04-30 2010 OTT 15 "15 0.Soo a 550 99JE1648 912828MY3 5-YEAR NOTE 04-30-2010 04 30 2015 2.$00 2.540 99.813289 912828MZC 7-YEAR NOTE 04 30-2010 04-30-2017 3. 125 3.210 49420882 912828NA4 3.YEAR NOTE 04 15-2010 04-15-2013 1750 1726 99.924368 912028MX5 9-YEAR 9-MONTH URE 04-15-2010 01-15-2020 1.375 S709 97.219605 912828MP4 9'YEAR 10 MONTH NOTE 04-15 2010 02-i5-2.20 3.625 3900 97763192 912828MP2 29'YEAR 10 MONTH BOND 04 15 -2010 02 15 2040 6 625 4.770 97.692939 912810QE1 2 YEAR NOTE 03 31 2010 03-31. 2012 1.000 1.000 100.000D00 912828MUI 5-YEAR NOTE 033 010 03-31-2015 1500 2.605 99.510730 912828MW] 2-YEAR NOTE 03-31-2010 03-31 2017 3,250 3TI14 99.232610 912828MV9 3-YEAR NOTE 03-15-2010 03-15 2013 ,1.375 1.432 99 61850 912028MT4 9-YEAR 11-MONTH NOTE 03-15-2U30 02 -15 2020 3,A25 3.735 99.090493 912828MP2 29-YEAR tl-MONTH BOND 03-15-2010 02-18-2040 4 N25 4.679 99.128159 912610QE1 2-YEAR NOTE 03-01-201.0 02-29-2012 0.815 0.895 99,060486 912528MQO 5 YEAR NOTE 03-01-2010 02-2A-2015 2,325 2.395 99.906254 912828MR8 2-YEAR NOTE 03-01-2010 02-20-2017 3.000 3.028 99.512216 9128281156 '30 YEAR TIPS 02-26-20r 02-15-2040 2.125 2,229 92.6ti2212 912810QP6 3-YEAR NOTE 02 16-2010 02-15-2013 1.375 1.312 99.994122 912628MN7 10-YEAR NOTE 0216-20ID 02-15-2020 3.625 3.692 99.443944 912828MP2 30 YEAR BOND 02 16 2010 02-15-2040 4.625 4720 98 483611 912810QE1 2 YEAR NOTE 02-01-2010 01-31-2012 0. R75 0.880 99.900112 912826M16 5-YEAR NOTE 07 01 2010 01-31-2015 2.250 2.320 99 432540 912828MHO 2 YEAR NOTE 02 01 2010 01-31-2017 3.125 3,122 99.987385 91262811R3 3YEAR r10TE 01-lb 2010 01-15 2013 1.325 1490 99.663620 912628MG2 9 YEAR 10 MONTH NOTE 01 15 2010 11-15-2019 3.325 3 7`i4 96,900805 912820LY4 TO YEAR TIPS 01-154010 01-15-2020 1,325 1.430 139,489212 9Q828MF4 29.YEAR 10 MONTH BOND 01-IS 2010 11 15 2039 4,325 4640 95.731167 9120IDQD3 2-YEAR NOTE 12-31-2009 12-31-2011 1.000 1.089 99.824397 912820ML3 5-YEAR NOTE 12-31-20" 12-31-2014 2.625 2.665 99..11909 912628ME2 2-YEAR NOTE 12-31-2009 12-31-2016 3.250 3.345 99.411424 912826M09 3-YEAR NOTE 12-15-2009 12-15-2012 1. 125 1,223 99712141 912626M03 9-YEAR 11 MONTH NOTE 12-15-2009 11-15-2019 3.375 3,448 99.382238 912828LY4 29-YEAR 11 MONTH BOND 12-15-2009 11 15-2039 4.375 4.520 92.621644 91281DQ03 2-YEAR NOTE 11 30 2E09 11-30-2011 0 750 0.802 99.891014 912028MM9 5-YEAR NOTE LI-30 2009 11 30-2014 2T25 2.05 99 161125 9128261.71 7-YEAR NOTE 11-30-2009 11-30-2016 2J50 2.835 99 A63148 912826MAS )-YEAR NOrE 11-16�2009 11-15-2012 1.325 1.404 99.915148 912826IX6 10YEARNOTE It 16-2009 11-15-2019 3.325 3420 99.203096 912628LY4 30 YEAR BOND 11-16 2009 11-15-2039 4.375 4469 98 454984 912810003 Denotes TIPS bond; all other TIPS without asterisks are notes Freedt,,i Nf-IrR,nmetun Act I Law & 501cfacca I Privacy & Le9N1 N t c I Nf b re fCRBS R m1a QueN, H5. DeparereinOfthTrva,trv, Bureakf Of the 'ThO POIT M http://www.treasurydirect.gov/RI/0FNtebnd 5/3/2010 FRB: H.15--Selected Interest Rates, Web -Only Vatty update--Apru _sv, zviv rdgc I Vl 3 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 April 30, 2010 2010 2010 2010 2010 Instruments Apr Apr Apr Apr 26 27 28 29 Federal funds (effective) 1 2 3 0.20 0.20 0.20 0.19 Commercial Paper 3 4 5 6 Nonfinancial 1-month 0.21 0.20 0.21 0.17 2-month 0.21 0.22 0.19 0.22 3-month n.a. 0.27 0.23 0.24 Financial 1-month 0.24 0.24 0.24 0.22 2-month 0.29 0.31 0.29 0.24 3-month 0.40 0.31 0.37 0.34 CDs (secondary market) 3 7 1-month 0.24 0.24 0.25 0.26 3-month 0.30 0.32 0.34 0.35 6-month 0.43 0.46 0.47 0.47 Eurodollar deposits (London) 3 8 1-month 0.30 0.30 0.30 0.30 3-month 0.40 0.40 0.40 0.40 6-month 0.52 0.52 0.52 0.55 Bank prime loan 2 3 9 3.25 3.25 3.25 3.25 Discount window primary credit 2 10 0.75 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 3 4 4-week 0.14 0.14 0.14 0.15 3-month 0.16 0.16 0.16 0.17 6-month 0.25 0.24 0.24 0.23 1-year 0.43 0.39 0.39 0.38 Treasury constant maturities Nominal 11 1-month 0.14 0.14 0.14 0.15 3-month 0.16 0.16 0.16 0.17 6-month 0.25 0.24 0.24 0.23 1-year 0.47 0.42 0.43 0.42 2-year 1.09 1.03 1.03 1.01 3-year 1.67 1.55 1.61 1.58 5-year 2.60 2.46 2.53 2.49 7-year 3.28 3.14 3.23 3.19 10-year 3.83 3.71 3.80 3.76 20-year 4.50 4.40 4.47 4.42 30-year 4.67 4.56 4.63 4.60 Inflation indexed 12 5-year 0.60 0.46 0.53 0.43 7-year 1.05 0.65 1.00 0.76 10-year 1.46 1.37 1.40 1.31 http://www.federalreserve.gov/Releases/Hl 5/update/ Federal Reserve Statistical Release HA5 *� Selected Interest Rates (Daily) ` Skip m fonmm Release Date: April 30, 2010 Weekly release dates I Historical data I Data Download Program (DDP),.I About I Announcements Daily update Other formats: Screen reader I ASCII �,�®� Oata Dovmiwd A Proenm 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. 5/3/2010 0' FRB: H.15--Selected Interest Kates, web-unly uauy upaare--Apru )v, wiv i asc c v ., 20-year 30-year Inflation -indexed long-term average 13 Interest rate swaps 14 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa 15 Baa State & local bonds 16 Conventional mortgages 17 n.a. Not available. Footnotes 1.67 1.75 1.78 1.71 2.00 1.93 1.97 1.88 1.95 1.87 1.90 1.82 0.62 0.63 0.65 0.64 1.24 1.22 1.23 1.22 1.63 1.80 1.79 1.79 2.33 2.29 2.29 2.28 2.74 2.70 2.70 2.69 3.31 3.28 3.27 3.27 3.80 3.76 3.75 3.75 4.46 4.43 4.41 4.38 5.27 5.15 5.24 5.19 6.21 6.10 6.18 6.13 4.37 5.06 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 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. An average of dealer bid rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. 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. 10. 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/2O02/2O021O312/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. 11. 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 nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/Itcompositeindex historical.shtml. Source: U.S. Treasury. 12. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturities. Source: U.S. Treasury. Additional information on both nominal and inflation -indexed yields may be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html. 7 http://www.federalreserve.gov/Releases/H15/update/ 5/3/2010 P m_i: t't.t J--Jelectea interest Kates, Weci-Valy Emily Upnate--iAPll1 JU, /U 111 rage J vij 13. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years. 14. International Swaps and Derivatives Association (ISDA?) 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?1. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Aaa rates through December 6, 2001, are averages of Asa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: Primary Mortgage Market Survey? 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 202-728-5086). 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 O.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 Home I Economic research and_dala Accemibdrty I Contact Us Last update: April 30, 2010 8 http://www.federalreserve.gov/Releases/H15/update/ 5/3/2010 FF,B: Commercial raper Kates ana vutstanuings Federal Reserve Release • r­ Release I About I Announcements I Outstaltdings I Volume statistics I Year-end I Maturity Distribution I Data Download Program (DDP) Data as of April 30, 2010 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust & Clearing Corporation Posted May 3, 2010 Discount rates 7Termnonfinancial AA A2/P2 nonfinancial AA financial AA asset -backed 1-day 0.18 0.36 0.18 0.26 7-day 0.16 0.31 0.19 0.30 15-day 0.18 0.34 0.18 0.33 30-day 0.20 0.31 0.22 0.26 60-day 0.20 n.a. 0.27 0.37 90-day n.a. n.a. 0.36 0.49 Trade data insufficient to support calculation of the 90-day AA nonfinancial, 60-day A21P2 nonfinancial, and 90-day A2/P2 nonfinancial rates for April 30, 2010. Yield curve 9 http://www.federalreserve.gov/Releases/CP/ 5/3/2010 FRB: Commercial Paper Rates and Outstandings rage z of 4 money marKet oasis — — — AA nonfinancial ....... A21P2 nonfinancial AA finlificial .............. - - - - - - - - - - - - - - - 1 7 15 30 60 Days to Maturity 90 0.75 0.50 0.25 0.00 ..... . -- - ff 800 ,PfE,,d ,prviif, 5-dav moving ;ivg - 700 - 600 - 500 - 400 - 300 - 200 - 100 .-P V*60 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Discount rate history 10 hftp://www.federalreserve.gov/Releases/CP/ 5/3/2010 FRB: Commercial Paper Rates and Outstandings rugr J vi Y Thirty -day commercial paper (daily) rerceni ��i AA norrGnanriai -------- -- A21P2 nonfinancial f --- AAfinancial 7 6 5 4 3 2 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars 1190 1090 990 890 790 690 590 490 90 Billions of dollars 280 240 200 160 120 3 2001 2002 2003 2004 2005 2006 2007 2008 2009 201080 --- Nonfmawal O,h tscale) 1 --- Finanuial{lcli>c:dc) 1 t tk l� n l I t lv� ( l 44r t 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 (DIM). This policy is subject to change at any time without notice. Release I About I Announcements I Outstandings I Volume statistics I Year-end Maturity Distribution I Data Download Program DDD 11 http://www.federalreserve.gov/Releases/CP/ 5/3/2010 FRB: Commercial Paper Kates ana umstanamgs Home I Statistical releases Accessibility I Contact Us Last update: May 3, 2010 12 http://www.federalreserve.gov/Releases/CP/ 5/3/2010 City of La Quints Cash Flaw Budget to Actual March 31. 2010 Cash Basis Budget Actual Accrual/ Adjusted Total Variance Account 3/10 3/10 Aduslment 3110 Over Under Notes Property Tax/ Tax Increment - 239.588 239,588 239,588 Re of Supplemental Property Tax Transient Occupancy Tax 567.851 444.486 444,486 (123.365) Deoinein TOTdoetoecnnomy Sales Tax 426,843 447,163 447.163 20,320 SilverRock Goff 514.636 662.030 662.030 147,394 Increased number of rounds played Library 238 1,255,075 1,255.075 1,254,837 Reoelved payment from County Riverside Co Transportation Commission Other revenues 1913438 1377771 7377771 535667 Did cot receive Fire Service credit Revenues 3,423,006 4,426,113 4,426,113 1,003,107 Expenditures Salanes 8 Fringe Benefits 903,448 826,355 826.355 (77,093) Other expenditures 2 457 092 1 603 542 1,603,642 853,450 Did not receive Police Invoice 3 360 540 2,429,997 2,429,997 930,543 Subtotal Mid year adlusunents 32321, fro consultants not Redevelopment Agency 325.874 101.199 101,199 (224,675) utnUed yet Debt Service(Principal/Interest/Pass Through) 6,052411 6074600 6074600 22,189 6378.285 6175798 6175798 202,406 Subtotal 1,013,782 11013,782 1,013 782 Capital Projects Total Expenditures 10,752,607 9,619,577 9,619,577 1,133,030 Net Revenues/Expenditures 7,329,601 5,193,464 5,193,464 129,927 NOTE 1: Expenditures are budgeted at 8.34% per month Difference between actual and bud et (Underspent) DEPARTMENT Overspent Notes GENERAL GOVERNMENT (118,100) CITY CLERK (16,049) COMMUNITY SERVICES 304,740 FINANCE (28,305) BUILDING 8 SAFETY (89,639) PUBLIC SAFETY (1,021,701) Police lmolce rot paid PLANNING (94,579) PUBLIC WORKS: 130373 Street Mahnerwroelowerthanbudgel 1194006 SUBTOTAL -GENERAL FUND Library Gas Tax Federal Assistance - JAG Grant Slesf(Cops) Revenue Indian Gaming Lighting 8 Landscaping RCTC Development Agreement CV Violent Crime Task Force AB 939 211 Quimby Infrastructure Proposition 1B 5,075 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 (38.280) Interest Allocation Equipment Replacement (43.304) Information Technology (23.745) Park Maintenance Facility (2,127) SilverRock Golf (8262) SilverRock Reserve LQ Public Safety Officer (167) Finance Authority (1,316) Capital Improvement Total 1 308 140 13 INVESTMENT ADVISORY BOARD Meeting Date: TITLE: May 12, 2010 Pooled Money Investment Board Report for February 2010 BACKGROUND: Correspondence & Written Material Item B A partial portion of the Pooled Money Investment Board Report for February 2010 is included in the agenda packet. This report is available on-line at www.treasurer.ca.gov. RECOMMENDATION: Receive & File L John M. Falconer, Finance Director POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF FEBRUARY 2010 WITH FEBRUARY 2009 (DOLLARS IN THOUSANDS) FEBRUARY 2010 FEBRUARY 2009 CHANGE Average Daily Portfolio $ 67,029,432 $ 59,295,343 $ +7,734,089 Accrued Earnings $ 29,661 $ 85,002 $ -56,341 Effective Yield 0.577 % 1.869 % -1.292 %II, Average Life -Month End (In Days) 200 205 -5 Total Security Transactions Amount $ 18,676,947 $ 13,619,365 $ +4,957,582 Number 376 276 +100 Total Time Deposit Transactions Amount $ 2,038,140 $ 4,071,000 $ -2,032,860 Number 99 143 -44 Average Workday Investment Activity $ 1,085,004 $ 982,798 $ +102,206 Prescribed Demand Account Balances For Services $ 1,141,654 $ 1,008,991 $ +132,663 For Uncollected Funds $ 20,749 $ 141,953 $ -121,204 NOW Account Average Balance $ 0 $ 0 $ 0 1 BILL LOCKYER TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) February 28, 2010 DIFFERENCE IN PERCENT OF PERCENT OF PORTFOLIO FROM TYPE OF SECURITY AMOUNT PORTFOLIO PRIOR MONTH Government Bills $ 19,975,391 29.38 -0.35 Bonds 0 0.00 0 Notes 6,959,273 10.24 -0.31 Strips 0 0.00 0 Total Government $ 26,934,664 39.62 -0.66 Federal Agency Debentures $ 3,420,661 5.03 -0.59 Certificates of Deposit 6,000,047 8.83 +0.76 Bank Notes 0 0.00 0 Bankers' Acceptances 0 0.00 0 Repurchases 0 0.00 0 Federal Agency Discount Notes 8,312,516 12.23 -0.02 Time Deposits 4,094,640 6.02 -0.09 GNMAs 101 0.00 0 Commercial Paper 6,805,729 10.01 +1.98 FHLMC/Remics 844,156 1.24 -0.03 Corporate Bonds 151,815 0.22 -0.06 AB 55 Loans 352,995 0.52 -0.02 GF Loans 10,770,400 15.84 -1.27 NOW Accounts 0 0.00 0 Other 300,000 0.44 0 Reversed Repurchases 0 0.00 0 Total (All Types) $ 67,987,724 100.00 INVESTMENT ACTIVITY FEBRUARY 2010 JANUARY 2010 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 376 $ 18,576,947 412 $ 20,300,018 Other 8 109,322 2 172,828 Time Deposits 99 2,038,140 183 3,990,100 Totals 483 $ 20,724,409 597 $ 24,462,946 PMIA Monthly Average Effective Yield 0.577 0.558 Year to Date Yield Last Day of Month 0.704 0.722 2 Pooled Money Investment Account Portfolio Composition $68.0 Billion 02/28/10 Loans Corporate Bon 0.22% Commercial Paper 10.01 % Time Deposits 6.02% CDs, 8.8 1. L4% Agencies 17.70% Treasuries 39.62% INVESTMENT ADVISORY BOARD Meeting Date TITLE: May 12, 2010 Correspondence & Written Material Item C Update on California Municipal Treasurers Association Conference (CMTA) BACKGROUND: The Treasurer attended the annual CMTA Conference in Sacramento in April. The CMTA has a link www.cmta.org, where conference material has been posted. RECOMMENDATION: Information only. A�k John M. Falconer, Finance Director BOARD MEMBER ITEMS Money market fund reform rules —continued from p.10 REFIT Am SECTION i : AMI CURRENT RULE 2a-7 Daily Liquidity: For all taxable money market funds, at j No daily liquidity provision. least 10% of assets must be in cash, U.S. Treasury securities, or securities that convert into cash the next j business day. Weekly Liquidity: For all money market funds, at least No weekly liquidity provision. Portfolio 1 30% of assets must be in cash, U.S. Treasury securities, Liquidity I certain government securities maturing within 60 days, or ' 1 securities that convert into cash the next five business days. jIlliquid Securities: (i.e. a security that cannot be sold at Illiquid securities cannot carrying value within seven days) Illiquid securities exceed 10% of fund assets. cannot exceed 5% of portfolio at time of purchase. Weighted Average Maturity (WAM): Maximum WAM of Maidinnum WAM of 60 days. Portfolio 60 days. Maturity Weighted Average Life (WAL): Maximum WAL of 120 No comparable requitement days.. Second Tier Securities: Second tier exposure limited to li 1 % per issuer, 5% total 0.5% per issuer and 3% in total, maturing in 45 days or�, Maximum maturity of 397 less. days. Ratings Agencies: Fund board will annually designate j No comparable requirement. four Nationally Recognized Statistical Rating Credit Organizations (NRSRO) to be used to determine Quality minimum ratings criteria Repurchase Agreements: sa esa eRepurc greements: To "look through," collateral Collateral must be "highly must be cash items or government securities with rated." No requirement with creditworthy counterparties. Adviser must evaluate the respect to the creditworthiness of the repurchase counterparty. ! creditworthiness of repo counterparties. Ali Funds: Hold sufficient liquid securities to meet - No comparable requiirement. Know Your Ydreseeable" redemptions. Funds are requbed,to , Investor devebp procedures toidentify investors whose redemption requests may pow risks for the.funds: Periodic Monthly testing of a fund's ability to maintain a stable $1.00 No comparable requirement. Stress net asset value (NAV) in the event of interest -rate or spread Testing changes, shareholder redemptions, and credit changes. Portfolio Holdings: Portfolio holdings to be posted to . •. - No portfdio;hddings f4nd's Web siteatleast monthly and maintained fora .: .. Web site disdasure • period of at least six months. ' - retju'vemenL Disclosure 'MomhlySEC Filing (Form N-MFP): Information about a . fund's risk characteristics, yiekt•-ponfda holdings, and,_* igark-to-market ('shadow+•) NAV (this will bemade public .. with a 60-day lag). Money Funds may suspend redemptions if the NAV falls below No comparable requirement. Fund $1 and, as a result, the fund will be liquidated; advisor Operations systems must be able to process shareholder transactions at a price other than $1. 1 Weighted Average Maturity (WAM): WAM calculates an average time to maturity of all of the securities held in the portfolio, weighted by each security's percentage of net assets. The calculation takes into account the final maturity of a fixed income security and the interest rate reset date for floating rate securities held in the portfolio. This is a way to measure a fund's sensitivity to potential interest rate changes. 2 Weighted Average Life (WAL): WAL calculates a fund's average time to maturity for all of the securities held in the portfolio, weighted to their percentage of assets in the fund In contrast to WAM, the WAL calculation takes into account the final maturity date for each security held in the portfolio. This is a way to measure a fund's potential sensitivity to credit spread changes. 3 Second Tier Securities: Are eligible money market securities that, it rated, have received other then the highest short-term debt rating from the requisite NRSROs or, if unmated, have been determined by the fund's board of directors to be of comparable quality. SEC publishes final money market fund —Wells Fargo Corporate Communications On June 24, 2009, in a move to strengthen the regulatory framework for money market funds and increase their resilience to economic stresses, the U.S. Securities and Exchange Commission (SEC) proposed amendments to Rule 2a-7 and other rules under the Investment Company Act of 1940 governing the operation of money market funds. On February 23, 2010 the SEC published full text of its final Money Market Reform Rules (Release No. IC-29132), which were discussed and approved on January 27, 2010 at an Open Commission Meeting in Washington, D.C. The rule changes adopted by the SEC are designed to strengthen the regulatory require- ments governing money market funds and better protect investors. They are intended to in- crease the resilience of money market funds to economic stresses and reduce the risks of runs on the funds by tightening maturity and credit -quality standards and imposing new li- quidity requirements. The table on page I I is a summary of the approved changes. As stated in the SEC posting, the new rules are effective May 5, 2010; however, required compliance dates are staggered throughout 2010. Unless otherwise noted below, the com- pliance date for the rules is the date of effective- ness, May 5, 2010. ■ May 28, 2010—Compliance required for quality, individual security maturity, liquidity, and repo changes ■ June 30, 2010—Compliance required for Weighted Average Maturity (WAM) and Weighted Average Life (WAL) changes ■ October 7, 2010—Compliance required for monthly portfolio Web site disclosure ■ December 7, 2010—Compliance required for monthly reporting to the SEC of mark -to -market NAV and other portfolio details, to be published by the SEC on a 60-day lag ■ December 31, 2010—Compliance required for NRSRO disclosure ■ October 31, 2011—Compliance required for processing transactions at other than a $1 NAV reform rules According to the SEC posting, "funds are not required to dispose of portfolio securities owned, or terminate repurchase agreements en- tered into, as of the time of adoption of the amendments to comply with the requirements of the rule as amended." The SEC plans to continue to review addi- tional fundamental changes to the structure of money market funds. Among the additional possible reforms are: ■ A floating NAV, rather than the stable $1 NAV prevalent today; ■ Mandatory redemptions -in -kind for large redemptions (such as by institutional investors); ■ "Real time" disclosure of shadow NAV; ■ A private liquidity facility to provide liquidity to money market funds in times of stress; ■ A possible "two -tiered" system of money market funds, with a stable NAV only for money market funds subject to greater risk -limiting conditions and possible liquidity facility requirements; and ■ Several other options being discussed with the President's Working Group. According to the SEC, while each of these ideas is under serious and active consideration, they represent substantial revisions to the money market fund landscape and therefore re- quire further review and study. For more infor- mation, please contact Lyle Defenbaugh, Director of Client Relations, CalTRUST, 916-441-6200. —Continued on page 11 Spring 2010 page 10 C 8 y W 0 l"1 W N � m W O bry S O 6 N N yNj m W n O O� N O F N O N n m O O m 0 n n m r Q O NN Ni N m M O Nm W N yj ZVS s O O m O a 0 0 0 W ry (O n 0 0 0 S ffi O O O O O O O b� w m W 0 0 0 O C C O b O b O m n N N N< n p m m m fl mo o 0 0 o o m 98. aN.,.. m m a m m O O vONi N N N n N 16 N N m tN0 O b Q LL N N 11 O O O N COO O n �gn n m oem �i ro m N N ere m � N a N o ry a ry p y. N N Oo0 N N 0 O o O aLLa U J N N N y 0 m m h o 0 o N W n N m N m p1 LL o o ro ro o 0 0 0 0 0 0 0 mho o n m e o 0 0 3W v e eo 0 o d o m o m W E s m M a m Nm M q@ m 5 _ N mN N p N ai N mi O O o 0 N W O N n <t0 WO m m m m N p�cr y m b O C'f mm ry O O P m 6 U c O o O N N b m 0 O Nm E b N W Q O Y r m m � m m 0 n 2 v 2y E m b m d 011l OUF� W Q Q WJiQ�ZiLLEQf -Ji fn Q R K it N a �L N J m nt L Bill Lockyer, State Treasurer Inside the State Treasurer's Office Local Agency Investment Fund (LAIF) SAVE THE DATE - LAIF CONFERENCE OCTOBER 21-22, 2010 PMIA Performance Report xi. to t�arto `* 3/15/2010 0.54 0.56 210 3/16/2010 0.54 0.56 208 3/17/2010 0.54 0.56 208 3/18/2010 0.53 0.56 206 3/19/2010 0.52 0.561 205 3/20/2010 0.52 0.56 205 3/21/2010 0.52 0.56 205 3/22/2010 0.53 0.56 204 3/23/2010 0.53 0.56 202 3/24/2010 0.53 0.56 205 3/25/2010 0.52 0.56 202 3/26/2010 0.53 0.56 205 3/27/2010 0.53 0.57 205 3/28/2010 0,531 0.561 205 'Daily yield does not reflect capital gains or losses LAIF Performance Report Quarter ending 12/31/2009 Apportionment Rate: Earnings Ratio: Fair Value Factor: Daily: Quarter To Date: Average Life: 0.60% .00001657120783286 1.000947825 0.56% 0.61 % 222 PMIA Average Monthly Effective Yields FEB 2010 0.577% JAN 2010 0.558% DEC 2009 0.569% Pooled Money Investment Account Portfolio Composition $68.0 Billion 02/28/10 Loans 16.36% Corporate Bon 0.22% Commercial Paper 10.01 % Time Deposits 6.02% CDs/BI 8.83°i Agencies 17.70% reasuries 39.62% ges 1.24% 3 a-aa.- vvavvLvu iaaLVLIJ l I. LI., IIIV-Vlll�]Ll¢LV Vt/4¢LL.--AlJl 11 lI IV AV L ¢r''I 1 Ul J Federal Reserve Statistical Release w H.15 ` Selected Interest Rates (Daily) skp m Couunt Release Date: April], 2010 Weekly release dates I Historical. data I Data Download program (DDP).l About I Annllun CCUICUIS Daily update Otherjormats: Screen reader I ASCII om oowm - (' Prvpnm 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. 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 April 1, 2010 2010 2010 2010 Instruments Mar Mar Mar 29 30 31 Federal funds (effective) 1 2 3 0.16 0.16 0.09 Commercial Paper 3 4 5 6 Nonfinancial 1-month 0.16 0.16 0.16 2-month 0.17 0.18 0.18 3-month 0.20 n.a. n.a. Financial 1-month 0.19 0.16 0.14 2-month 0.19 0.29 n.a. 3-month 0.26 0.32 n.a. CDs (secondary market) 3 7 1-month 0.21 0.22 0.22 3-month 0.26 0.27 0.27 6-month 0.39 0.39 0.40 Eurodollar deposits (London) 3 8 1-month 0.30 0.30 0.30 3-month 0.40 0.40 0.40 6-month 0.45 0.45 0.45 Bank prime loan 2 3 9 3.25 3.25 3.25 Discount window primary credit 2 10 0.75 0.75 0.75 U.S. government securities Treasury bills (secondary market) 3 4 4-week 0.11 0.13 0.15 3-month 0.15 0.16 0.16 6-month 0.24 0.24 0.24 1-year 0.39 0.40 0.38 Treasury constant maturities Nominal 11 1-month 0.11 0.13 0.15 3-month 0.15 0.16 0.16 6-month 0.24 0.24 0.24 1-year 0.42 0.44 0.41 2-year 1.04 1.06 1.02 3-year 1.65 1.65 1.60 5-year 2.60 2.60 2.55 7-year 3.32 3.32 3.28 10-year 3.88 3.88 3.84 20-year 4.61 4.59 4.55 30-year 4.76 4.75 4.72 Inflation indexed 12 5-year 0.75 0.77 0.72 7-year 1.25 1.28 1.23 10-year 1.66 1.66 1.60 http://www.federalreserve.gov/Releases/HI5/update/ 4/1/2010 4 1 aw. aa.a✓--VYLYYLYY .LLLYLYJL 114110, " LULL.' VFJ .LY-- F-'- l I LV L V 14r" L VL J 20-year 30-year Inflation -indexed long-term average 13 Interest rate swaps 14 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year Corporate bonds Moody's seasoned Aaa 15 Baa State 5 local bonds 16 Conventional mortgages 17 n.a. Not available. Footnotes 2.07 2.06 1.99 2.22 2.22 2.16 2.17 2.17 2.10 0.57 0.58 0.58 1.20 1.23 1.21 1.80 1.84 1.82 2.322.34 2.32 2.73 2.76 2.74 3.32 3.35 3.32 3.83 3.85 3.83 4.55 4.56 4.54 5.37 5.37 5.32 6.37 6.36 6.31 1. The daily effective federal funds rate is a weighted average of rates on brokered trades. 2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly figures include each calendar day in the month. 3. Annualized using a 360-day year or bank interest. 4. On a discount basis. 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. An average of dealer bid rates on nationally traded certificates of deposit. 8. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. 9. 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. 10. 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/2002/2O0210312/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. 11. 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 nominal rate. The historical adjustment factor can be found at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ltcompositeindex historical.shtml. Source: U.S. Treasury. 12. Yields on Treasury inflation protected securities (TIPS) adjusted to constant maturities. Source: U.S. Treasury. Additional information on both nominal and inflation -indexed yields may be found at www.tress. gov/offices/domestic-finance/debt-management/interest-rate/index.html. http://www.federalreserve.gov/Releases/H15/update/ 4/1/2010 5 13. Based on the unweighted average bid yields for all TIPS with remaining terms to maturity of more than 10 years. 14. International Swaps and Derivatives Association (ISDA(R)) mid -market par swap rates. Rates are for a Fixed Rate Payer in return for receiving three month LIBOR, and are based on rates collected at 11:00 a.m. Eastern time by Garban Intercapital plc and published on Reuters Page ISDAFIX(R)l. ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited. 15. Moody's Asa rates through December 6, 2061, are averages of Asa utility and Aaa industrial bond rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only. 16. Bond Buyer Index, general obligation, 20 years to maturity, mixed quality; Thursday quotations. 17. Contract interest rates on commitments for fixed-rate first mortgages. Source: 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 Do" nload Program (DDP) I About I Announcements Daily update Otherformats: Screen reader I ASCII Statistical releases Home I Hconumic research and dam Accessibility. I Contact Us last update: April 1, 2010 http://www.federalreserve.gov/Releases/HI5/update/ 4/1/2010 6 - -..-.. ...,----------- ...I-. »..... —.» ..»....»..» ..6., a ar" i 'a � Federal Reserve Release Commercial Pa Rele ase I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution I Data Download Program (DDP) Data as of March 31, 2010 Commercial Paper Rates and Outstanding Derived from data supplied by The Depository Trust & Clearing Corporation Posted April 1, 2010 Discount rates FTerm nonfinancial nonfinancial financial asset -backed 1-day 0.05 0.24 0.06 0.20 7-day 0.11 0.26 0.09 0.35 15-day 0.13 0.30 0.13 0.30 30-day 0.16 0.32 0.14 0.25 60-day 0.18 n.a. n.a. 0.28 90-day n.a. n.a. n.a. 0.41 Trade data Insufficient to su000rt calculation of the 90-dav AA nnnfinanrial. 80tlav AWP9 nnnfinnn 90-day AA financial rates for March 31, 2010. Yield curve cial, 90-day A2/P2 nonfinancial, 60-day AA financial, and i http://www.federalreserve.gov/Releases/CP/ 4/1/2010 Money market basis — — — AA nonfinamial A2/1`2 n financinl -- AA limm.ial Percent --1 0.75 0.50 0.25 F.V 1 7 15 30 60 90 Days to Maturity Discount rate spread Thirty -day A2/P2 less AA nonfinancial commercial paper (daily) Basis points 800 --- .prcaJ. S-Aip nwving nvg 700 600 500 400 300 200 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 Discount rate history http://www.federalreserve.gov/Releases/CP/ 8 4/1/2010 Thirty -day commercial paper (daily) Percent — — — AA nonfinancinl --- - A2/P2 nonfinancial —'— AA financial ! 7 6 5 4 3 2 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Outstandings Weekly (Wednesday), seasonally adjusted Billions of dollars 1190 1090 990 890 790 690 590 490 390 Billions of dollars � 1280 — — — Nonfinancial (right scalcj t --- Financial flea xalci 1 t - t 1I dl t, } liV�}�' t -t �t� t r. till ' , t V �tSr Iw t 240 200 160 120 r� �� �i ��• �� ��. _�� �N_gyp• 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 (EDP) 9 http://www.federalreserve.gov/Releases/CP/ 4/1 /2010 Home I Statistical releases Accessibility I Contact Us Last update: April 1, 2010 10 http://www.federalreserve.gov/Releases/CP/ 4/1 /2010 1\V{i 411111111 ALLVUVIl L\VJU1W TreasuryDirect Numc ns 1. -i I Aln11u,.[ 6- Java A Resuir I. west Pill; 1 , Daly riClerlt hill A awi, Pr,,, Recent Bill Auction Results 5l cu tlty Is9ue Matunly Discount In veftmen[ Grlce Tenn Date Date pate % Rale Wa 4er 51U0 CUSII+ lO DAY 04-05-2010 04 15-2010 O.PO 0.11E 99 995278 917795.111 16-DAY 04-01-2019 00 19203. 0.150 0.15E 99 992500 912795Y5,I 4-WEEK 04 O1 Q0t0 oc 29-ID10 0. 150 015E 99.90P333 912"195UV4 56-0AY 04-01-2010 052T 2010 0.160 0162 9911511, 912795tea 13 WEEK 04-01-2010 02-01 20O 0.145 O.IV 99.96334E 93U95U66 26 WEEK 04-01-2010 09 30 2010 0.240 0.244 99. 878667 912295VC2 4-WEEK 03 75-2o t0 04-22 2030 0. 105 0.10E 99.991833 912195UN9 56-0AY 03-16-ZO10 0&20.2030 0.130 0,132 99.929210 912195UR0 13 WEEK 03 25-20In 06-24-2010 0.15E 0.151 99 960819 912195UV1 26-WEEK 03-25-"10 09-23-2010 0240 0.244 99.67866, 912195U90 4-WEEK 03-IB-2010 04 15 2010 0. 135 0,13E 99.989500 912195UM1 56 DAY 03-18 2030 05-13-2010 0. Ills 0.147 99.977444 912795UQZ 33-WEEK 0318-2010 06-17 ZOto a 165 0.16E 99.956292 912E95UU3 26-WEEK 03-IB-1010 09 16 2010 0.240 0.24,1 99.01866E 912195VIA 4-WEEK 03-ii-2010 04.08.20 O 0. 110 011E 99.9914na 912795U33 56-DAY 03-11-2010 O5-06-20.0 0. 145 0.141 99 977444 912E95U41 13-WEEK 03-11-2010 06-10-2010 T150 0. 152 99962083 912795U16 26-WEEK 03-IL2010 09-09-2010 0.205 0.206 99.896361 912E95VA6 52 WEEK 03 d12010 03-102011 0.3E5 0.381 99.620833 912195M 4-WEEK 03-04 2010 04 01-2010 0.080 0081 99.993718 912195UL3 56-0AY 03-04-2010 04.}9 2010 0.125 0,127 99.98055E 912E95U¢4 13 WEEK 03"201. 06-03-2010 0. 125 0.12E 99960403 912795115. 2611EEK 03-04-2010 09 02 2010 0. 165 0. 188 99.90WE2 912795V71 4 WEEK 02-25-Mill 03 25-2010 a 055 0 056 99.995722 912295T84 56-DAY 02-21, 2010 04 22 2010 0. 100 0.301 99.984444 912's51JN9 13 WEEK 0225-2010 05-21-2010 0.100 0,101 999E4E22 912795.5E 26 WEEK 02-25 2010 08 26 2010 0.190 0.193 99 903944 912795U82 4 WEEK 02-IB-2010 03 18-2010 0060 0 111 99.995333 912195T16 ll-WEEK 02-]0-20r 05-20-2010 0.100 0.101 99,974722 912795UPO 26-l9EEK 02-]8-2010 Oa-19 2010 O.I85 0.188 99.906472 912795V65 4-WEEK 02-i1-2010 03 It 2010 0.055 0056 99.995722 912795T" 13 WEEK 02-11-2010 05-13 2010 0,110 0.112 99 9E2194 91ZE951JQ2 26 WEEK 02 I1-I010 08-12 1010 O. 1EO O.113 99 91405E 912E95V9 52-WEEK 021 t-20t0 02-t0-2011 0.320 0.32E 99.0 6444 911295V4D 21-DAY 02 04 2010 02 25 2010 0.020 0.020 99.998833 912E95143 4-WEEK 02 04 2010 03 M 2010 0 040 0.o41 91.996889 912,95,50 3 WEEK 32-04 2010 05-062010 0095 0096 91.915986 912195W11 26-WEEK 02044010 08-05-2010 0.165 0.16E 99.916583 912295V24 4 WEEK 01-20-2010 02 25-2010 0.000 0.000 100.000000 912195T43 13 WEEK Ot 28 2010 04 29 2010 0.055 0.056 99 98609E 912795UN Effective With the 11/2/96 aumon, all Nis are auctioned using the single -priced method. I reeaol If I1f0mW13on Art l La.Y d bm0. 'nu, n leil m Nil, tm 1W. s. 1m.. s foil 1 1iu. ss'u I.Y U.l.G prt er_of 1nt ,U", ," 1i nIu Qy1 1 1 http://www.treasurydirect.gov/RI/OFBills 4/1/2010 TreasuryDired Mr I Ie I II II Iu10IuI 4 na l.,c _ I 5, I,, I, IT R, I1. r, It I' .o1 ,I I' Itc u, vI, I I.11, TI on <. au rI, Recent Note, Bond, and TIPS Auction Results se curl.. Term TYve l::ue Mxwtl.Y "Re, ea vela Pr me cus1V Date Dale Rate we % Pe, $to 2-1AR NOTE O3 31 2010 03 31.2012 1.000 1000 100.000000 912828M0I 5-YEAR NDTE 03 31 2010 03-31-2015 2,500 2,605 99 11011. 9128]BMVIT ]YEAR NOTE 03-31 -2010 03-3 L 2012 3.250 3.324 99.232610 912028M19 3-YEAR MOTE 01 I53ID0 E, 11200 1. 315 1. 432 99818589 9IM28MT4 9-YEAR 11-MONTH NOTE 0315-2010 02-15-2020 3.625 3 735 99.090493 912028ME2 29 YEAR 11 MONTH BOND 03-55-2010 02'152D4D 4,625 4. 679 99.1211111 912810QE1 2-YEAR NOTE 03 01 201D 02-29 2 2 0811 0.895 99.960486 912028MQ0 S YEAR NOTE 03 01 2010 02.28-2015 2.D5 2.395 99.90625'1 912020MRS 7 WAR NOTE 03 01-2U10 02 a0 2017 3. 000 3. 078 99.512216 912828MSG '30 YEAR TIPS 02-26-2010 O2 15:2040 2,125 2229 97 667212 912830QF8 3-YEAR NOTE 02-16-20 t0 U2-15 2011 LDS L3/2 99.994t21 912818MN2 l0-YEAR NOTE 02 I6 1010 02-15-2020 3.625 3.691 1,9.441944 91282BM1l 30-YEAR BONE 02 16 2010 02 15 2040 4, 625 4.720 98 083611 912B10QE1 2'WAR NOTE 02-01�2010 01 31-2012 0 875 0.860 99. 99011, 9128281.1t, 5'YE44 NOTE 02 0Y2010 01-342015 2,250 2.370 99.437540 912928MH0 2 YEAR NOTE 02-OY20I0 0 -11 2017 3. 725 3. 127 99.987385 911828H0 3-YEAR NOTE 01 IS-201D 01-15-2011 1.315 1190 99.6G3820 912828MG2 9'YEAR 10 MONTH NOTE O1 15 2010 11-15-20.1 3,325 3.254 96.900805 912828LY4 10-YEAR TIM 01-15-2010 01-15 2020 1.315 1.430 99 A69232 9II828MF4 29-YEAR 10 MONTH BOND 01-15-2010 11-15-2039 4.375 4,640 95731167 912810QD3 2-YEAR NOTE 12 31 2009 12-31-2011 1.000 1 089 99 .24311 912828MLI 5-YEAR NOTE 12-31-2009 11-31 2061 1.625 2.665 99 813999 912828ME2 1-YEAR NOTE 11 d1-2009 1231Q016 3.25E 3.345 99411474 912828M(19 3'YEAR NOTE 12 15 2009 12 15 -2012 1.125 1.121 99,112191 912823MB3 9-YEAR 11 MONTH NOTE 12-15-2009 11 15 2019 3.375 3.448 99.30221E 913B28LY4 29 YEAR II MONTH BOND 12152009 11-15-2019 4. 375 4. 520 91,611644 912830QD3 2 YEAR NOTE 11-30-2009 11 30 foil 0,750 0.802 09091034 912826MM9 5-YEAR NOTE 11 30.2009 11-30-2014 1. 125 2. 175 99.164325 912828L21 1-YEAR NOTE 11-30-2009 1130 2016 2,150 2.835 91 W3148 9I2828MA5 3-YEAR NOTE It-162009 11-152012 1.315 1404 99915N8 932628U(6 IO YEAR NOTE 11 16 2009 11-15-2019 3375 3 470 99.203098 9128191Y4 30-YEAR BOND lL 16-2009 11-15-2039 4,325 4469 98 4549" 912630003 2-YEAR NOTE 11-02 2009 10-31-2011 1.00E 1.020 99.960585 9/2828115 5-YEAR NOTE 11 02 2009 10312014 2.315 2.388 99.938982 9128d8L51 2-YEAR NOTE 11-02-21" 10 31 2016 3. 125 3.141 99899963 912NuHA)f 4 YEAR s MONTH TIM 10-30 2009 04 15-2014 1.250 0 16V 104.11S658 9128289MI 3-YEAµ NOTE 10 15-2009 TOn52012 1,315 1445 09, 195L0 912828LR9 9-YEAR 9 MONTH 7IS 10-15 2009 OA I5-2019 1.815 1 510 104.28R691 912026LA6 9-YEAR 10 MONTH NOTE 10152009 08-15-2019 3.625 3.210 1034700/3 912S2u JI 29-YEAR 10 MONTH BOND 10.15-N09 08 15 2039 4SEE 4D09 us 490231 112810QR5 Denotes TIPS b0ntl; all other TIPS without asterisks are notes Fm200 01I Dm. n1 un A.. I L11, a Grit Da... 3 L_al NDTces I1 ..rm 6:" , I-L IrI,I wu or", I, I tt IT I, neHl cf Lne Tr P I I u v, Bu.-e:,4r nI :M1e PU ONc Oetn 12 http://www.treasurydirect.gov/RI/OFNtebnd 4/1 /2010 City of La Quinta Cash Flow Budget to Actual February 26, 2010 Cash Basis Budget Actual Accrual/ Adjusted Total Variance Amount 2/10 2710 Adjustment 2/10 Over Under Notes Property Tax? Tax Increment 231,422 231,422 231,422 Received supplemental Property Tax Transient Occupancy Tax 504,755 297.440 297.440 (207,316) Dedere in TOT due 0 economy Sales Tax 401,735 1,054,517 1,054,517 652.782 Received Saks Tax Reimbursement SilverRock Golf 552,495 524,632 524,632 (27,863) Library 1.275,088 - (1,275,088) Hare net received psymaw from County Riverside Co Transportation Commission - - Other revenues 4,829,724 3,377,704 3,377,704 1 452 OO Did net receive Fire Service Grad t Revenues 7.563,797 5,485,715 5,485,715 2,078,082 Expenditures Salaries & Fringe Benefits 903,448 B06,662 806,662 (96,785) Other expenditures 2 513 962 1 881 3d4 1�81 344 632 618 Did not receive Fire invoice 3,417,410 2688006 2688,OO6 729404 Subtotal Mid year adrysMenls 32321, er mrx:Wbnrs not Redevelopment Agency 321,991 41.001 41,001 (280,989) utilized yet Debt Service (Princlpat/InlereatiPass Through) 371282 359885 359885 11.397 693,273 400887 400887 292.386 Subtotal 1 591 %5 1,591,965 1,591,955 Capital Projects TOGI Expenditures 5,702,648 4,680,858 4,680,858 1,021,71 Net Revenues/Expenditures 1,861,149 am,857 884,857 3,088, 172 NOTE 1: Expenditures are budgeted at 8.34% per month Difference between actual and budijet (Underspent) DEPARTMENT Overspent Notes GENERAL GOVERNMENT (109729) CITY CLERK (13,601) COMMUNITY SERVICES (39,945) FINANCE (32,435) BUILDING & SAFETY (96.076) PUBLIC SAFETY (207,796) Fire Invoice not paid PLANNING (98,075) PUBLIC WORKS: 291350 Street Mairnenstrace ewer than budget 889,007 SUBTOTAL -GENERAL FUND Library Gas Tax Federal Assistance JAG Grant Slesf (Cops) Revenue - Indian Gaming - Lighting & Landscaping - RCTC Development Agreement CV Violent Crime Taal, Face AB 939 (6,956) Quimby Infrastructure Proposition 1 B South Coast Air Quality (2,219) Transportation - Parks & Recreation - Civic Center Library Development - Community Center Street Facility - Park Facility - Fire Protection - Ads In Public Places (52.965) Interest Allocation Equipment Replacement (46,581) Impartation Technology (27,275) Park Maintenance Facility, (2,127) SllverRmk Golf (22784) SilverRock Reserve - LO Public Safety Officer (167) Finance Authority (1,316) Capital Improvement Total 1,051,397 13 MEMORANDUM TO: La Quinta City Council FROM: John M. Falconer, Finance Director/treasurer SUBJECT: Treasurer's Report for February 26. 2010 DATE: March 31, 2010 Attached is the Treasurer's Report for the month ending February 26, 2010. 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 Be innin Purchased Notes Sold/Matured Other EndingChan e LAIF $ 56,780,475 $ 2,000.000 $ (9,150,000) $ 49,630,475 (7,150,000) Certificates of Deposit 1.209,000 (2) 17,898 1,209,000 35 67,535 98,8670 17,898 US Treasuries 98,849,637 (2) 1,463 18,996,946 1,463 US GovY Sponsored Enterprises 18,995,483 0 0 0 Commercial Paper - (2) (11,373) 15,227.442 (11,373) Corporate Notes 15,238,815 1 492,531 411,652 492,531 Mutual Funds Subtotal $ 904,183 191,977,593 $ 2,000,000 $ 9,150,000 $ 484,543 $ 184.343,050 1 $ f7,634,543 Cash $ 677,226 $ 6,617,651 1 & 3 $ 5,940,425 6,617,651 Total 651 $ 9,150,000 $ 484,543 $ 190,283,475 $ 1,016,892 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 Quints, 1 hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next sits 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. Vr"&' \ +4., y / -�--2 01 l� John M. Falconer Date Finance Directodireasurer 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 February 2010 Cash Balances - The portfolio size decreased by $1.02 million to end the month at $190.28 million. The major reason for the decrease was $462,000 spent on the Station 32 Fire Station Project, $300,000 spent on the Dune Palms Road widening Project and $244,000 spent on the Maintenance Yard Project in February. Investment Activity - The investment activity resulted in an average maturity decreased by 53 days to 186 days at the end of February. The Treasurer follows a buy and hold investment policy and no investment purchases were made in the month. The sweep account earned $12 in interest income for the month of February and the bank fees for the month were $ 2,019 which resulted in a net decrease of $2,007 in real savings. Portfolio Performance - The overall portfolio performance increased by five (5) basis points from the prior month and ended at .48% for the month, with the pooled cash investments yielding .51 %. The portfolio yield should continue to stay at these levels for the near future. At this time last year, the portfolio was yielding 1.11 % which reflects the current interest rate environment. Looking Ahead The Treasurer is still concentrating on safety first and foremost. In the short term, the Treasurer will be maintaining LAIF balances at the maximum allowable percentage because its rate declines slower in a declining rate environment. 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Egsp!3uI�8 g @i V. � b yy »yg CgE bLL N y$y b6FV i_ p E3m €�$ wm b N 5 p Em € ss ^. =i am €€5u �u »ao Fr .0 m.i F^ ©' OHM I ° 49M 4 Ito T � F — o � St sg o' t Jill ; E City of La Quinta Comparative Rates of Inlenso t Feloruary 26, 2014 C9v of La Want August 2006 494% 501% 4,97% 48 4,97% 409 Set 2008 I98% 502% 63 5.00% 502% Cd 2006 5.04% 503% 501% 5,03% 67 4.98% 5.13% Nov2006 504% 5.03% 503% 82 494% 5.13% Dec 2006 5,12% 5,16% 60 4.90% 5,13% Jan 2007 6,18% 5.19% 5.13% 5,17% 64 4.95% 5.18% Felt 2007rMo 5.21% 5.03% 5.15% 45 495% 5.21% Mar 2007 5.21% 514% 5.15% 67 4.88% 521% AW 520% 5,05% 5.16% 42 4,81% 525% y200] May 2007 519% 505% 5,10% 32 4.81% 525% June 2007 5.21% 4.88% 5.12% 65 4.81% 5.26% FY ODOB July 2007 5.21% 0.90% 5.12% 129 480% 5.26% August200) 5.17% 4.85% 508% too 4,59% 525% Sept M7 5,16% 486% 506% 129 4.00% 523% Oc12007 5.11% 4.85% 502% 116 395% 5.14% Nov 2007 5,03% 4.83% 4.95% 99 3.34% 4.96% Dec 2007 495% 3.43% 4.45% 123 3,39% 4.80% Jan 2008 4.58% 333% 422% 98 2.31% 462% Feb 2008 4.12% 3.24% 3.85% 86 207% 4.16% Mar2008 4.07% 283% 3.67% 74 150% 378% At 2M 345% 327% 341% 82 1,70% 340% May 2008 3.14% 3,27% 3,17% 63 1.92% 307% June 2008 3.09% 1,9,1% 2.86% 80 2,14% 289% FY 0"9 July 2008 2.90% 1.0% 277% 62 170% I.N% 2.29% 2.76% 2,18% 2.79Y. August 20D 3.16% 1.92% 288% 51 169% 1'80% 2,14% 2.38% 2.08% 278% Set2008 2,81% 1,92% 2.64% 37 1.42% 1 ]99. I N% 2.00% 2,13% 2.77% Cd 21ID8 2.66% 261% 2.61% 29 0.90% 1.40% 1.72% 150% 2.07% 271% Nov 2008 238% 236% 2.36% 64 0.15% 049% 1.04% 1.25% 145% 257% Dec 2008 I'l 0.18% 142% 116 0.06% 0.25% 059% 0.88% 0,97% 2,35% Jan 2009 1.36% 0.18% 123% 82 0,15% 035% 043% 0.88% 031% 205% Feb 2009 123% 0.18% 1.11% 75 030% 0.50% 061% 0.88% 048% 167% Mar2000 1.26% 0.18% 1.13% fig 020% 0.42% 0,70% 0,88% 0.37% 1,82% At 2009 0.94% 0.18% 0.85% 54 0,31% 033% 0.59% ON% 028% 161% May 2009 092% 0.18% 084% 80 0.18% 0.30% 0.53% O88% 023% 153% June 2009 085% 029% 0.60% 111 0.20% 035% 0.55% 1.13% 026% 138% FY 09I10 July 2009 0,69% 0.30% 0.65% 1 t I 0.19% 0.28% 0.47% 100% 0.28% 1.04% Au{MSt 2009 064% 030% 0:1% 92 0.16% 026% Od6% 100% 024% 093% Sep12009 0.56% 031% 0.53% 112 0.12% 0.199. 0.41% 100% 0.19% 0.75% Cc12009 052% 0.31% 0.50% 90 0.06% 0.19% 038% 100% 0.19% 065% Nov 2009 0.56% 0.31% 0.53% 152 004% 0.14% 032% 0.75% 0.15% 061% Dec 2009 0.56% 0,15% 051% 239 0.11% 020% 0,16% 100% 0.16% 05]% Jan2010 0,46% 0.15% 043% 179 0.0% 0.14% 0.34% ON% 013% 0.56% 10 u o_ Z m s LLLL O 21, (6 7 C (6 x `o c N E E c N Q U V N I 0 ii K p oC) w w I ■ � 1 � 7 1 i > a II'I� Z III I 1 N o O cmI CD'- t 1 V IV O0 � LL o ai H L E L 7 rn L CD (i l0 N U) LI i L y CL cv o OD cp v a oN o d O O i O O O a 11