2011 01 12 IABP.O. Box 1504
LA QuINrA, CALIFORNIA 92247-I504
78-495CALLr_7'Aamll.rl (760) 777-7000
LA QuINIA, CAL IFOR N A 92253 FAX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Caucus Room
78-495 Calle Tampico- La Quinta, CA 92253
January 11, 2011 - 4:00 P.M.
CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Vice -Chairperson
III PUBLIC COMMENT - (This is the time set aside for public comment on any matter
not scheduled on the agenda.)
IV CONFIRMATION OF AGENDA
V CONSENT CALENDAR
A. Approval of Minutes of Meeting on December 8, 2010 for the Investment
Advisory Board.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for November 2010
VII CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
December 2010
B. Pooled Money Investment Board Reports - October 2010
C. November 9, 2010 Joint Meeting Minutes with the City Council
VIII BOARD MEMBER ITEMS
IX ADJOURNMENT
PUBLIC NOTICES
The La Quinta Caucus Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the
Finance Department at 777-7150, twenty-four (24) hours in advance of the meeting and accommodations will be made.
Any writings or documents provided to a majority of the Investment Advisory Board regarding any item on this agenda will be
made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calls Tampico, La Quinta, CA 92253,
INVESTMENT ADVISORY BOARD
MEETING
December 8, 2010
CALL TO ORDER
A regular meeting of the Investment Advisory Board was called to order at
4:00 p.m. by Chairman Park followed by the Pledge of Allegiance.
PRESENT: Board Members Mortenson, Blum, Park and Spirtos
ABSENT: Board Member Rassi
STAFF PRESENT: John Falconer, Finance Director, Vianka Orrantia, Senior
Secretary and Bryan Gruber, Lance Soll & Lunghard LLC, Audit Manager
11. PUBLIC COMMENT - None
III. CONFIRMATION OF AGENDA — Confirmed as amended.
At the request of Board Member Spirtos, Mr. Falconer suggested that
Section VI, Item A be the first item of discussion. Board concurred.
At this time Section VI, Item A was discussed.
IV. CONSENT CALENDAR
A. Approval of Minutes of Meeting on November 10, 2010 for the
Investment Advisory Board
MOTION — It was moved by Board Members Spirtos/Mortenson to
approve the minutes of November 10, 2010. Motion carried
unanimously.
V. BUSINESS SESSION
A. Transmittal of Treasury Report for October 2010
Mr. Falconer presented and reviewed the staff report for the month of
September, advising the Board that the balances decreased slightly by
$2 million with the yields remaining unchanged and the average
maturity decreased by 19 days as a result of the investments getting
closer to maturity, the monthly payment to the Sheriff's Department,
the semi-annual debt service payment and capital improvement
expenditures. Mr. Falconer also advised that page 4 currently reflects
an overage of the maximum allowed by Medium Corporate Term
Notes. Mr. Falconer further advised that the portfolio was
experiencing unrealized gains of approximately $217,000.
Mr. Falconer advised that due to the upcoming maturities in Treasury
Bills, that he was considering reinvesting in three month treasuries
which would result in a decline in the portfolio by approximately three
to four basis points.
In response to Board Member Spirtos, Mr. Falconer clarified that page
9, Column YTD Forecast; Forecasted Favorable (Unfavorable) 8.85%
is reported for the Redevelopment Agency.
In response to Chairman Park, Mr. Falconer advised that Riverside
County Sheriff's office is scheduled to be paid on a monthly basis but
they are behind on their billing by four months.
In response to Board Member Blum, Mr. Falconer advised the City is
invoiced monthly by the County of Riverside for police services based
upon the actual service provided with some costs shared with other
cities.
In response to Board Member Blum, Mr. Falconer summarized for the
Board the costs of building and running the firehouses in the City
limits. In addition Mr. Falconer clarified the difference between a
Charted City and General Law City.
MOTION — It was moved Board Members Blum/Mortenson to review,
receive, and file the Treasurers Report for October 2010. Motion
carried unanimously.
VI. CORRESPONDENCE AND WRITTEN MATERIAL
A. City of La Quinta FY 09/10 Audited Financial Statements
Mr. Bryan Gruber of Lance Soll, & Lunghard, LLP, Audit Managers
presented the Audited Financial Statement for year ending June 30,
2010. Mr. Gruber advised the Board that the audit is conducted in
phases; the interim audit is conducted during the fiscal year with the
focus on internal controls of the City related to the City's cash and
investments balances, in addition to the controls in place, the
2
investments balances, in addition to the controls in place, the
purchasing of investments and the testing of transactions and backup
to verify that the controls are functioning correctly, (which also
includes a series of tests in other areas). The next part of the audit is
conducted after the fiscal year end and the focus of the audit at that
time are the City's cash balances that are reported in the financial
statements, which are reviewed through a series of tests including
independent third party confirmations in addition to auditing the
information of the financial statements, which also includes the City's
cash and investments.
As a result of the audit there are two forms of communication, the
first is a report of internal controls and compliance, which there were
no noted material weaknesses or issues of non-compliance for the
fiscal year ending June 30, 2010. The first letter issued to the City is
in accordance with auditing standards and various other standards
that is related to this particular communication. As a result of the
final report issued to the City is the independent auditors report (the
financial statements), which is an unqualified opinion, which is the
best opinion that could be received in a financial audit.
Mr. Gruber advised of the footnote listed on page 42, which relates to
cash and investments, this footnote provides an overview of the City's
cash and investments balances, the various risks that are related to
the City's investing activities and also provides the City's position, and
to the policy if applicable to the various risks. One potential risk to
the City is the interest rate risk, a risk that changes in market interest
rates that adversely affect the fair value of an investment. Mr. Gruber
advised that the City is provided with a table that schedules the
maturity of the City's cash and investments balances, at this time
approximately 90% of the portfolio will mature within one year or
less. Mr. Gruber also advised of an risk to the City's portfolio,
that being credit risk, which is a risk that an issuer will not fulfill its
obligation to the holder of the investment, the City's investments are
disclosed by credit rating, either standard or poor at the end of the
year, with the City's current rating at AA or better. Another risk to
the City is the concentration of credit risk; under GASB 40 it is a
requirement that the auditors report any investments that are more
than 5% of the portfolio. Reported at this time was securities held
with Federal Home Loan Bank. The final risk to the City is custodial
credit risk, the risk that in the event of failure of depository financial
institution government the City would not be able to recover its
deposits; currently the City has not been exposed to any custodial
credit risk.
Kl
Mr. Gruber advised that on page 3, the City provides a management
discussion and analysis which provides an overview of the financial
statements and position of the City. Mr. Gruber also advised that the
City implemented a new statement, GASB Statement 54 which
changes the classification and the appearance of the fund balance in
the financial statements. GASB Statement 54 was issued to provide
more transparency and make it more apparent the constraints on fund
balances. As a result of GASB Statement 54, the report on fund
balances has changed somewhat.
In response to Board Member Mortenson, Mr. Gruber advised that this
year there were no recommended changes to the current internal
controls.
General discussion ensued amongst the Board, staff and Mr. Gruber in
regards to the Fiscal Year June 30, 2010 Comprehensive Financial
Annual Report.
The Board at this time thanked Mr. Gruber for his attendance and
reporting of this year's financial report.
Noted and Filed
B. Month End Cash Report — November 2010
Mr. Falconer advised that the interest rates to date have been stable,
but recently shown a slight increase, as a result there has been a
decline in LAIF to .45% basis points.
Noted and Filed
C. Pooled Money Investment Board Reports — September 2010
Mr. Falconer advised that average portfolio has increased by $4 billion
in comparison to last year's portfolio. Mr. Falconer commented that if
Treasury Bills interest rates begin to increase, LAIF might not be able
to sell Treasuries and report a gain.
Board Member Mortenson advised the Board of the comment made by
Councilmember Henderson and her sentiments in regards to LAIF.
Noted and Filed
111
D. November 9, 2010 Joint Meeting Minutes with the City Council
Due to the fact that meeting minutes were not available at this time,
the joint meeting minutes will be distributed at the next scheduled
Board meeting.
VII. BOARD MEMBER ITEMS - None
Vill. ADJOURNMENT
It was moved by Board Members Mortenson/ to adjourn the Investment
Advisory Board meeting at 4:44 p.m. Motion carried unanimously.
Subm'
Vianka Orrantia
Senior Secretary
5
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: January 12, 2011
ITEM TITLE:
Transmittal of Treasury Report
for November 30, 2010
BACKGROUND:
Attached please find the Treasury Report November 30, 2010
RECOMMENDATION:
Review, Receive and File the Treasury Report for November 30, 2010
John M. Falconer, Finance Director
`ibf 44QalHiw
MEMORANDUM
TO: La Quinta City Council
FROM: John M. Falconer, Finance Director/Treasurer
SUBJECT: Treasurers Report for November 30. 2010
DATE. December 31. 2010
Attached is the Treasurer's Report for the month ending November 30, 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
Sold/Matured
Other
Endin
Chan e
LAW
Certificates of Deposit
US Treasuries
US Gov't Sponsored Enterprises
Commercial Paper
Corporate Notes
Mutual Funds
Subtotal
$ 44,123,655
969,000
87,984,998
-
15,131,200
581 ,796
$ 148,790,649
$ 500,000
13,000,000
-
$ 13,500,000
(2)
(2)
(2)
(�)
$ (2,650,000)
(13,000,000)
$ 15,650,000
(1)
5,219
0
0
(11,784)
0
$ Q566
$ 41,973,654
969,000
87,990,217
0
0
15,11Q416
581.796
$ 146.634,083 1$
(2,150,001)
0
5,219
0
0
(11,784)
0
2,156,566
Cash $ 481,879 $ 174,73I I1 & 3 $ 656,616 174,737
Total $ 149,272.528 S 13,674,737 $ 15,650,000 $ Q566 $ 147,290,699 $ 1,981,829)
I certify that this report accurately reflects all pooled investments and is in compliance with the California
Government Code; and is in conformity with the City Investment Policy.
As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated
revenues are available to meet the pools expenditure requirements for the next six months. The City of
La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement and the Bank of New York
Monthly Custodian Report to determine the fair market value of investments at month end.
G+� ✓ l 2- 1
John M. Falconer
Dalle
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_
L
Treasurer's Commentary
For the Month of November 2010
Cash Balances — The portfolio size decreased by $2.0 million to end the month at $146.63
million. The major reason for the decrease was payments to the Riverside County Sherriff of
$855,000, and payments of $739,000 for Capital Projects.
Investment Activity — The investment activity resulted in an average maturity decrease of 4
days from the prior month to end the month of November at 4 days. The Treasurer follows a
buy and hold investment policy with one US Treasury Bill investment purchased made during
the month of November for $13 million. The sweep account earned $1 1 in interest income for
the month of November and the bank fees for the month were $ 1,890 which resulted in a
net decrease of $1,879 in real savings.
Portfolio Performance — The overall portfolio performance had a two basis point decrease
from the prior month and ended at .49% for the month, with the pooled cash investments at
.53%. The portfolio yield should continue to stay at these levels for the near future: At this
time last year, the portfolio was yielding .53% 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 a lesser percentage in LAIF balances due to going out on the
yield curve in one and two year U.S. Treasury Bills/Notes.
The Treasurer will not be investing in non-TLGP corporate notes, non-TLGP commercial paper
or Fannie Mae or Freddie Mac Government Sponsored Enterprises (GSE) due to the current
economic conditions affecting the financial markets.
R1
C
O
N
W
N
y
x
O
Z
D
Z
p0
Z
Z
C
z
Z
O
N
O
W
Z
Z
C
O
N
Q
9
Q
p1— N
c E
a
`o
W
U
o
IC
IC
9
m
3 ry�
m
O
D
pl C
KJ
N
N
W
N
W
D
p
W
N
N
N
M
O
M
O
N
M
O
m
M
M
(y
O
N
M D
>
>
O
7
N
N
oC C
0 0 0
C
0
N
N
O a
o a
o E E E E
E
O
N
O
'65
II
II
p
V
V
Fy
O O O O
O
O O O O
O
O O O O
O
LL D
O
O O
O
O
O
j
4
ro
O
N
O
N N
OI
O
O
Q
w
O
mo
0 0 0 0
000
c
o
e
e
.0 0 0
o
e
�mo
O
O
O
Q Q
N
N
O
O
E
O O O O
o 00.
0
O O O
0 0 0 0
9 p
c E
�
�
�
�
O O O O
� o 0 0
O
O O O O
vl
o
M N N N
m
N N N N
N
OI D
C
N O W
A O 9
L
d E
�` O
N
C N N
Z m J
N
N
C
D
N O
p. V U
O Z C
N LL D O
O J
C
N
c
o
2] O N
c
y
m
c m 3
m m°
o m
U
N
D
W d N
N
ly
¢
m
m
N V
Q
Do
_ E
C
W
�
O ry D
N"j
Oi N
of
o
c
pjQZm
ddd
�
➢��
O
c
f
=
o
m
m v a
E
a o m m
m
m
o
n U
E
w
o
E
N
h
=
E UO
_
NU NJJ
N
UC7 �
d
ry
E E
E
c
pm
m
oin U
E E o E E
'moo
`m
V
L m
=
0 o u
m
rn
w
J
C7 E o
Elms zmm
E
E
m
u-
d� m
T
c
a
m
E
or mmm
o
rw
cm`
m
75
Tplu
F]
m
W
U
m
N
d C C
L
D
U
o w
Qm
N
Vc
O
>m<
w
r
U
U(7 2
d
M h �
N � V
O O O
`i
m
tO
0� N
O O b M O M
O
� '
a aaa¢aaaaa�
zzzzzzzzz
vz
¢ aaam oaa
Nz�'z
z'z an -zz
2 w
spa
o'z000ammm
UN U� U
r �
N
E
aoo
o E E E E E E i E g
m
a
E E
$
as
0E'r
'^0V1 656NN-Atm
y
m ENN�o=aygg¢o
z
33 ____s�`�LLa
333333=3
3
5
_
o
E
E
a
LLa
m°maaa=ooa0000000000
�KrcKSKrc�tttt¢rcttttrcrccc
has aa'a'
�rcrc
m°mm �m°m°mm
`m-Eo�o,�
o _
wNNNVINi�ILL
Z'�N�x1L N(A woo,
U U�jii°owmiw mmmo o
�E
--- ----------- ----
. . . . . . . o
�U
v¢¢¢¢aaaaaaaa
u
a a a aaaa
zzz'
v'zzzzz'zzzzzzzzz'z
z
m>
mp�0000000a000a00000
�➢55�3@335
L°55� '�°63�L°3
m
E E E E E E E E E E E E E E E E E E E
3aa¢aQaaaaaa
¢Q_
N
............i......
a
a� Npa
� ya
a N'�n�'ai`way�-`a''n a u'�ayV dUa
�U
�_od
om o mymmmY
``-
N m
cmON�pmj
ym`mcm>j�mm�
cJtm/)Nc ct9mNmo
0.0
.�N(/jJmmJNmJNJyJ�a�„
[a"�JaN'QJN6
JQJQ
`a¢mJcttQJp¢Kattm
r
UUm'nOaOLLUNK�KOFrFoeN
.°
arnKc mKm c+
'E
Uzm
9 �o
M
O
O
�
O
„NN
O
OJ N
O O
O
j0
O O
O O
O
O
n00
O
M
M
a
a
F
� O
�
O
ma
r �
� N
N
A
d
u
L
r
a
IL
C
01
E
N
E
>
C
VI N
a E
-
A
=ZPS
9 �
W R
�
N
O
O
0 0 0 0 0
d
0 0 0 0 0
N N N N N
A
W V m ro N
00000
O O O O O
O
O
A
0 0 0 0
O
O.
o 6 0 0 0 0
0
C
M
N
a
a
n
F
y 0 0 0 0
a.aaaa. o
O
d
N
O
N
O
N
C
d
N
E
LL
w U w
c
y E
mo
- lL LL ll lL
N
=ZF,-
Siam n`fmm�$�mn �n'n$_n �=
mm
m
Q
E
e'
e
Fm
F
F
8LL>F
g"
F nAm grim
v¢"�Emrca
Eeg�m'
ao�
F F =E�ag
aArm 2snpyacoW 3ua
!
EyFo
av
cF_
_'°2'_
c rEwn c6v p3SEc�mE
m
o5 ov'.
mor'
ce3a
U UU'06��QNEVw
¢m
u��
i�
[im
H
Nm���
En�mw °i$'m
Frv_°n�'M S'iry
S
'm$Si$v
F
nmm _
_
Fm »nry
A
rtnmm8
am&mm
8
`JSime9—
so�»u�m�mry
2
2$�mm rv$�m
2m$�m
2m vn nnwmoa
m$ym
amv$n�u`+
m'nma»S
aEw
�d'm
nSim B��
�"dmngn vm mry
_
EST-g�$w
_ H
�
Emn`m5
Sew
_
'$
:amine
nary
main»»gE�m
m&»» mo»
mAi:�nm
maP'
g e?m ��WN
g:&m ^$
g:mm�mm Rm
Bem��dma�
nr
m�Is
aTm..a$.
„mma m
Bmm-<m-m
^naazaem'
Ev'ma ��mm
E$mm
E—r$mmm
ENm .n m m min
»�»
_
<mry
:�8ry
»-»
w
&
i
-26
n z8a" e
E m�E
n i8'' �
E m`eao"
n8a
E maC'ao"
" zsa
E m�u_
�o
ma @�ue�q
m�ruua�A
`a
g^E"�u �LL
cm y E�vSA
�mci uiE E'c q'S
�'2'�u€ALL
gfiv�viE Ec55
b5viy EE56
rUN»aSUF�
rUL)77aVVF�=
in jjdUUFr
rU-nn>j¢UFr
u
\\
r
t
.
=
/S \
\\)\
/))Zm
ZD
City of La Come
Comparative Rates of Interest
Noveratal 2010
Average I I Treasury BillslNote I I Three Month
"riwur
lull-
August 20M
494%
501%
497%
48
497%
495%
Sept 2006
498%
501%
499%
53
500%
602%
0ct2006
5.00%
5.02%
5.01%
67
4.96%
5.10%
Nov 20M
5.04%
5.03%
5,03%
62
4.94%
5.13%
Dec 20M
508%
504%
506%
80
490%
5.13%
Jan 2007
5.18%
5.12%
5.16%
64
4,98%
5.16%
Feb 2007
5.19%
5.13%
5.17%
45
4 95%
5.18%
Mar2007
5,21%
503%
5.15%
67
488%
521%
Apr2007
5.20%
5,14%
5.15%
42
4.84%
5.22%
May 2007
5.20%
505%
5,16%
32
4.81 %
525%
June 2007
5.19%
468%
5.10%
85
481%
525%
FY 07I08
July 2007
5.21%
490%
5.12%
129
4,80%
5.26%
August 2007
5,17%
4.85%
5.08%
109
4.59%
5.25%
Sept 2007
5.16%
485%
506%
129
400%
523%
Oct 2007
5,11%
485%
502%
116
3,95%
5,14%
Nov 2007
5.03%
4.83%
4.96%
99
3.34%
4,96%
Dec 2007
495%
343%
445%
123
3.39%
480%
Jan 2008
4,58%
3.33%
4.22%
96
2.31%
4.62%
Feb 2008
4,12%
3.24%
3.85%
Be
207%
4.16%
Mal-2008
407%
283%
367%
74
150%
3,78%
Apr2008
3.45%
3.27%
3.41%
82
170%
3.40%
May 2008
3.14%
327%
3.17%
63
1.92%
307%
June 2008
309%
194%
286%
80
2.14%
289%
FY 08109
July 2008
2.99%
1.93%
2.77%
62
110%
1.88%
2.29%
275%
2.18%
2,79%
August2008
3.16%
192%
288%
51
169%
1,89%
2.14%
2.38%
208%
278%
Sept 2008
2.81 %
1.92%
2.64%
37
1.42%
1,79%
1.96%
2,00%
2.13%
2,77%
Oct2008
266%
2.61%
261%
29
090%
140%
172%
150%
2.07%
271%
Nov 2008
2,38%
2.36%
2.36%
64
0.15%
049%
1.04%
1.25%
145%
257%
0.2008
160%
0.18%
142%
116
005%
025%
059%
088%
097%
2.35%
Jan 2009
136%
0.18%
123%
82
0.15%
0.35%
0.43%
0.88%
0.31%
205%
Feb 2009
1.23%
0.18%
1.11%
75
0,30%
0.50%
061%
0.88%
0.48%
187%
Mar 2009
1.26%
0.18%
1.13%
69
0.20%
042 %
070%
088%
0.37%
182%
Apr2009
094%
0.18%
085%
54
031%
033%
059%
088%
0.25%
1.61%
May 2009
0.92%
0.18%
0.84%
80
0.18%
0.30%
0.53%
0.88%
023%
1.53%
June 2009
085%
0.29%
080%
111
020%
0.35%
055%
1A3%
026%
138%
FY 09,10
July 2009
069%
030%
065%
111
0,19%
0.28%
047%
100%
0.28%
1.04%
August 2009
0.64%
0.30%
0.61%
92
0,16%
0.26%
0.46%
1,00%
024%
093%
Sept 2009
0.56%
0.31%
0.53%
112
0.12%
0.19%
041%
100%
0,19%
0.75%
0ct2009
052%
0.31%
0.50%
90
0.08%
0.19%
0.38%
1.00%
0.19%
065%
Nov 2009
056%
031%
053%
152
004%
0.14%
032%
075%
0.15%
0.61%
Dec 2009
0.55%
0.15%
0.51%
239
0,11 %
0.20%
0.16%
1.00%
0.16%
057%
Jan 2010
0.46%
0,15%
0.43%
179
006%
0,14%
034%
088%
0.13%
0.56%
Feb 2010
0.51%
0.16%
048%
162
0.13%
0.19%
0.32%
088%
0.16%
0.58%
Mar2010
050%
0.16%
047%
172
0.15%
0.24%
0.38%
1.00%
0.20%
0.55%
Apr2010
0.52%
0.16%
0.48%
162
0A5%
0.24%
049%
1.00%
0.23%
059%
May 2010
0.52%
0.16%
046%
116
0.17%
022%
037%
075%
028%
0.55%
June 2010
053%
0.15%
049%
134
0.16%
022%
032%
063%
0.32%
0.53%
FY 10111
July20lO
0.50%
0.15%
047°/a
119
0.16%
020%
0.30%
063%
0.2B%
0.53%
August 2010
049%
0.15%
0.46%
108
0.15%
0.19%
0.26%
0.38%
025%
0.51%
Sept 2010
055%
0.15%
0.51%
107
0.16%
0.19%
0.27%
038%
024%
050%
Oct 2010
055%
0.15%
051%
88
0.13%
0.17%
023%
038%
0.23%
048%
10
N
I
,
�
N E
L
® ■
N >
> c
o I-
I Z Iw
c
I
N
o m
@
I Li-
m
0 co
U
I �
c
E
m
I W
f-
I o �
c
i
o
c
x
® ■ E Q
F
CD
CL
1
m.
�
c
■
w
c
O) L
�
I Q IU
w
I
c
4)
- - - — - - -
-
--- - -- --
I d
Q
N
0
O
O
O N
(con:)
Z
�
p * ■
>,
.-
.F
=s ,
5
N
O
m
m
N
I
W
W
!C
--
- - -I - - - --
-
-
@
o
�+
I
C
c
>
c
c
3
U)
0
I
Q
Q
H
o
p
O
O
V R
o
U
N
0
0
0
0
0
Q
0
M
R
M
C
O
M
N
N
O
O
O
O
O
O
O
O
a
11
INVESTMENT ADVISORY BOARD
Meeting Date: January 12, 2011
TITLE:
Month End Cash Report for December 2011 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
N
m m m
N
O
p O O m Qj
O n O m m m O
N
w
m
O
N
w
m m O O O O O
N, O m Z VI
m
N
m
O O O OO w
Inom �lpe
Y90
o
0
d
o
o
0
nmo
�nm m
w
O1
w
m
2
d E
0
0
0 0 m 6, N o 0 0 0 0 0
mo
o
66m'^1. o000 a ow
n
x>0
0
o
6
w
r
.13
d O
p
O
O
O
O
O
O
m
m 10 pm lm+l W M m
m
N
m
-60
0
p
NNmmm10 Nn
m m
m
d❑
Oj
W
w
tnp m w w N
N
n
0.6.
m
m
w
O
m
ro
O
'o
m
O
IO
o
o 0 0
O o o
0
v
Q LL_
O
m
N
m6
N
r, 6m
❑ Q
N
P m m
n
CI
w
of
of
w
m
m
m
Ip
(O
tO
0 0 0
0
0
,z LL
P
m
C?
m_ O
V
ga
v
v
��ai
io
v
N
N
N
N
O Y
N
00
W
P P
lL N
O O
O
O
O
O
vKp
v
O
O
O
ul
y
�
aom
P
v
y
e
O C
LL
m
m
O
O
O
m
t0+1
N
3
N
N
N
o
a n
n
m
n
a°i
o n_
m
rn
o
vwi
N
w N
�
d
3
tO
Imo
m
N
In
C
LL
O O O O, N
N O O O N m w m
N
0
N
O
O
O
N
u
M L
O O m N m w m �
N
m
O
m
rtj
zo
a
0
o
w
Imo
N
m
O
N
U2
U
Mw
0
N
N
A o
O
o K
N
a
@
Q
N
N
p
2
y
N
a d
Up
E `w
�
d
d� � m A m �
m
d
N ••
E E
Al C u= T d
w u d N n N>>
o d
Q W O Z❑ W Q
N
a
Q
p
m O Q U S a d H
W
Q
6
W
L
Bill Lockyer, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
sw
Daily
.field'
tQuarterTto
abate Yield
atunty,
_ (in da s
12/15/2010
0.45
0.46
191
12/16/2010
0.45
0.46
207
12/17/2010
0.45
0.46
206
12/18/2010
0.45
0.46
206
12/19/2010
0.451
0.46
206
12/20/2010
0.451
0.46
206
12/21/2010
0.441
0.47
201
12/22/2010
0.441
0.47
205
12/23/2010
0.451
0.47
212
12/24/2010
0.45
0.47
214
12/25/2010
0.45
0.47
214
12/26/2010
0.45
0.47
214
12/27/2010
0.46
0.47
219
12/28/2010
0.46
0.47
220
12/29/2010
0.46
6 47
219
Corporate Bo
0.00%
Commercial Pape
9.91 %
Time Deposits
6.22%
LAIF Performance Report
Quarter end 09/30/2010
Apportionment Rate:
Earnings Ratio:
Fair Value Factor:
Daily:
Quarter To Date:
Average Life:
0.51 %
.00001404107774697
1.001914850
0.47%
0.51 %
185
PMIA Average Monthly Effective Yields
NOV 2010 0.454%
OCT 2010 0.480%
SEP 2010 0.500%
Pooled Money Investment Account
Portfolio Composition
$67.2 Billion
11 /30/10
Loans
11.82%
Treasuries
50.59%
CDs/BNs
7.29%
Agencies Mo t a es
13.33/o g 9
0.84%
f<7
Recent Bill Auction Results ' "bv
TreasuryDired
1i,,,1 I1119118nB1 p enm034s, Dare&Fesult Ewca 49511e1-D la - flecom flitm ual60swrs
Recent Bill Auction Results
saanap
T frm
a:�e
Il ate
wamrlIV
Date
ol.mune
Rate °A
DWestme.e
Rate W.
Price
Pcr Y300
rusLP
4 WEEK
56-DAY
13 WEEK
26 WEEK
9-WEEK
56-DAY
13 WEEK
26 WEEK
4-WEEK
56-DAY
13 WEEK
26-WEEK
52-WEEK
4 WEEK
56-DAY
13-WBEK
26 WEEK
7-DAY
4-WEEK
56 DAY
].3-WEEK
26-WFEK
4-WEEK
55-DAY
13 WEEK
26 WEEK
4-0WEEK
5a AY
13-WctC
26 WEEK
52-WEEK
4-WEEK
SS DAY
0 WEEK
26 WEEK
4-WEEK
56-DAY
13 WEEK
26-WEEK
4-WEEK
12-30-2010
12-30 Mir
12 10-3010
12-30�2010
12 23 2010
12 23 ttIo
12�23 2010
12-232010
12-16 2010
2-16 2010
32-16201U
12-16-2010
12-16-2010
12 09-2010
12-09-2030
12-o9-2010
12-09-2010
12-08 2010
12-02-2010
12-02-2010
12-02-2010
12-02-2U10
11-26-2010
11-26-2010
11126 2010
11 26 2010
11-16-2010
11-18-2010
I1-18-2010
11-11
11-18 2010
11-12-2010
11-12 2010
11 12 2010
II-12 2010
11-04-2010
11 04-2010
11-04 2010
IL04-20ID
10 28-2010
81-27 2011.
02-21 2.011
OJ-31-2011
0fi-30 2011
01-20 2011
02-17 2011
e'324-2011
06-232011
01-13-2011
02-10-2011
03-V-2031
06-16-7011
12-15-2011
01-06-2U11
02-03-2011
03-10-2011
06-09 2011
12 15-2010
12-30-2010
01-47-2011
03-03-2011
86-02-2011
12-23-2010
01-20-2011
02-24-2011
05 26 2011
12-162010
01-13-2011
02-17-2011
05-19-2011
11-17-2011
12-09-2010
UI-06-2011
02 10-2011
05-12-2011
12-02-2010
12-30-2010
02-03-2011
05-05-2011
It 26-2010
0.065
0. 120
U. 160
0.225
0 070
0.130
0.IN
0,185
0,085
0.125
0.140
0,190
0,295
0.080
0.125
0.1'6
0.185
0.140
0-115
0.155
0.175
0.210
0,150
TA"
0.140
0. 195
0. 125
0.125
0.135
0,180
0.280
0.105
0,095
0,125
0. 16D
0.125
0.145
0. 125
0.155
0.130
0.066
0.1.2E
0. 103
0.228
0.0]1
0.132
0,132
O. I88
0986
0.127
0.14E
0. 193
0,300
0,081
0. 121
0.141
0188
0.142
0. 1]]
0.15I
0.17e
0.711
0. 152
O.1G2
0.142
0. 198
0,127
0,127
U 137
0.183
0.284
0.10E
0.096
007
0,162
0IV
0.147
O.l27
0.157
0.132
99 A94944
99 '181333
99 954500
99,886250
99.994556
99.9J9]]8
99 967139
99.906471
99.9933.9
99.98US56
99.9e4611
99.903944
99.701722
99,993778
99.980556
99,16130
99.4064Y2
99.9912J8
99.986389
99.975609
99.9557&1
99.A93833
91 988750
99.975556
99,965000
99.901958
9911027.
99!969556
99.965815
99.909000
99.716889
99.992125
99.985466
99 968750
99.90556
9P,9902]A
99.97/444
99viiM 3
99921639
99.989578
9.12995X97
9177152E4
912795"1
91 d]95X22
912795X89
91179520E
912J952n3
9127952W0
912295UX7
912795V40
912795215
9127952V2
912795217
912J95X71
912795Y21.
91270SV99
9127y52U4
91279561)8
913295X55
912]95X9I
917711202
912795W64
%7795X48
91279SX69
9122952U
912795259
9117951IKS
912795UX2
912I95206
9127952Ri
9127952P5
912195X30
912295XJ1
912795VIO
9127952Q3
912/95W90
91219505
912795Y21
912795VE9
912I95W80
Effective with the 11/2/98 auction, all bills are auctioned using the single -Dr iced method
Freeao _---r-r_rormel.RMc. 11, a ,9,9e , I P_ ... a L,01 nceEes I 1€t 1 1,,,&1sne n I �sup�lµ I uatoQ9anK
U' Depart ne R elh,l Y, 3i il9u 14 P.tll DKOt
4
littp://www.treasurydirect.gov/RI/OFBills 1/3/2011
Recent Note, Bond, and TIPS Auction Results
HN,111 I Ifistiumare, I A' 3Ne ............ Rata & Resull 4 2PettN D ca rt.c.m Note. t Ond, and III A re,-Iao
Recent Note, Bond, and TIPS Auction Results
T+sue Maturity Interest Yield Price OBSIP
Term TyOc 5
Security at. Dale Rat. % Wr Y., 100
2. YFAR NOTE 12-31-2010 12'31-2.012 0.62E 0 740 99. 772112 912629PW4
8-YEAR NOTE 12-31-8010 12-31-2015 2. 1.25 2.149 99.886797 912828PM6
7..YEAR NOTE. 1231-2010 12312017 2J50 2.110 99n95202 912828PN4
3 YEAR NOTE I2-15-N0 tt 12-15 -2013 0.750 0862 99,669011 932621ONS
9-YEAM1 11 MONTH NOTE 12-15 2030 3Y 5Q020 2.625 3.34E 94.002822 9I2828PC9
24REAR I1-MOBTN BOND 12-I5-Into 11-15 2040 4,250 6 410 97_349324 9, 2630QL5
2-YEAM1 NOTE It 30-2010 11-30-2[12 0.500 1,520 99.900259 '12628PV0
5-YEAR NOTE 11-30-2010 11 to 201E 1.3J5 1411 99.826792 912828933
J YEAR NOTE 11-30-2010 IT 30 2017 235E 2.253 99.900673 '112920PKD
3-YEAR NOTE 11-15-2010 11-15-ZD13 0.500 0,575 99.777247 9126181H8
4-YEAR B.MO51111 TIPS 11-15-2010 07-15-2020 1.250 0.409 108 103501 912826NM8
10-YEAR NOTE 11-15-2010 il-1S-2020 2 E25 2.636 99i903856 912828PCB
30 YEAR BOND 11-15-2010 11-15-2040 4.250 4.320 98.829162 912010QLS
2-YEAR NOTE 11 01-2010 10-31-2012 0.375 0,400 99.95031E 912828PD6
5-YEAR NOTE 11 01 2010 10-31-2015 1250 1.330 99.614432 912B26Pts
Y-YTAR NOTE 11-01-2010 10-31-2019 1,875 H970 99.3818a, 912828PFI
4-YEAR 6 MON I T1P5 10-29-2010 04-15-2015 0.500 -O. S50 105.508607 912828MY3
3-YEAR NOTE 30-15 201E 10-15-?013 0.500 0.564 99. Y95046 912820PSO
9-YEAR 10-HONTH NOTE 10-15-2010 08-15-2020 2.625 2.475 101.298J42 91.2826NT3
29 YEAR 10 MONTH BOND 10 15-2010 06-15-2040 3.975 3.852 TOO 39]FAE 912810QF7
3
2-YEAR NOTE 09-30-2010 010-2012 0,3J5 0.441 00 868724 912823NX4
5-YEAR NOTE 09-30-2010 09-30-2015 1 250 1.26n 44 95169E 912829NZ9
J-YEAR NOTE 09 30 2010 09-30-0017 1,875 I'm 99.90081 IT2WSPA2
3 YEAR NOTE 09-152010 09-15-2013 O. 750 0790 996816Q 912828NY2
11YEAR 10-MONIt] TIPS 09-15-2010 17-15-2020 1,250 1.019 102.109163 91282rDMB
9-YEAR 11 MONTH NOTE 09-15 1010 08-15-2020 2 625 2.670 99,607796 9126231IT3
29 YEAR 11 MONTH BOND 09 15 2010 08 11-2040 3,875 3.820 100 970530 912810QK2
2-YEAR NOTE 08-31-2010 08 31-2012 0 325 0 496 99755524 912628PIU
5-YCA0. NOTE 06-31-2010 06-31-2015 1.250 1.374 99402 e97 912826NV8
2-YEAR NONE 08-31 2010 08 31-2011 1.875 1989.99.258493 912626NV26
29 YEAR 6-MONTH TIPS 08-31-2010 02-15-2040 2,125 1. J66 109BBR119 912810Qf8
3-YEAR NOTE 0e-16-2DIC Oa-15-2013 0.250 0,844 99.22235E 912e281Ju0
il. 10-YEAR NOTE 08-16-2010 08-15-2020 2.625 2.930 99,086655 912828N T3
30-YEAR BON. 08 d6-2010 0-I5-2040 lee, 3.954 98.619129 912810QK)
2-YEAR NOTE OB-02-2010 0J-11 201.2 0.625 0,665 99.920863 912628NQ9
5-YEAR NOTE 06-02-2010 07-31-2015 S. 750 1.796 99.131106 912628NP1
7-YEAR 1.11 06-02-2010 0231-2012 2.3eS 2394 99,678150 912828Nµ7
}.YEAR NOTE 07-15-2010 02-15-2013 1.000 1, 055 99.838004 91282614N6
9-YEAR 10-MONTH NOTE 02-15-2010 05-15 2020 3.500 3,119 103.199671 s125?8N08
II -YEAR TIPS 07-15-2010 07-15-2020 1.250 1..29E 99.579194 912828NMS
Denotes TIPS bond; all other TIPS wRhout asterisks are notes
Feecde n Nf Informo{ on A t I- v R GNianre I Pr 111 & L al Not... 1 Y'.. 1 T in's d C0rd L I A ey@ I V I Data QuafiYY
---- -- n,s,Ot tn>n of Herv,@TI111 of toe+ RMC Bert
5
1/3/2011
http://www.treasurydirect.gov/RI/OFNtebnd
FRB: H.15--Selected Interest Rates, Web -Only Luny upaate--uecemver ov, /viv
. asp , .
Federal Reserve Statistical Release
H.15
Selected Interest Rates (Daily)
Release Date: December 30, 2010
Week release dates I I listoiicaldata I Data Download Prograi_n.(DDP) 1 About I Announcements
Daily update Other formats Screen reader I ASCII
®���6ata t?owniaad
Program
The weekly release is posted on Monday. Daily updates of the weekly release are posted Tuesday
through Friday on this site. If Monday is a holiday, the weekly release will be posted on Tuesday
after the holiday and the daily update will not be posted on that Tuesday.
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
December
30,
2010
2010
2010
2010
Instruments
Dec
Dec
Dec
27
28
29
Federal funds (effective) 1 2 3
0.19
0.18
0.18
Commercial Paper 3 4 5 6
Nonfinancial
1-month
n.a.
n.a.
0.20
2-month
n.a.
0.20
n.a.
3-month
n.a.
n.a.
n.a.
Financial
1-month
0.17
0.19
0.14
2-month
0.22
0.24
0.24
3-month
0.29
0.27
0.29
CDs (secondary market) 3 7
1-month
0.26
0.26
0.26
3-month
0.30
0.30
0.30
6-month
0.42
0.39
0.42
Eurodollar deposits (London) 3 8
1-month
0.32
0.32
0.32
3-month
0.39
0.39
0.39
6-month
0.55
0.55
0.55
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
0.04
0.08
0.05
3-month
0.17
0.15
0.13
6-month
0.22
0.21
0.20
1-year
0.30
0.29
0.28
Treasury constant maturities
Nominal 11
1-month
0.06
0.08
0.05
3-month
0.17
0.15
0.13
6-month
0.22
0.21
0.20
1-year
0.32
0.31
0.30
2-year
0.71
0.75
0.64
3-year
1.11
1.17
1.05
5-year
2.08
2.18
2.03
7-year
2.76
2.89
2.75
10-year
3.36
3.50
3.35
20-year
4.20
4.33
4.19
30-year
4.42
4.53
4.41
Inflation indexed 12
5-year
0.25
0.34
0.22
6
http://www.federalreserve.gov/Releases/H15/update/ 1/3/2011
FRB: H.15--Selected Interest Rates, Web -only ualty upaate--lJcoe11iUU1
7-year
0.71
0.81
0.70
10-year
1.06
1.17
1.06
20-year
1.64
1.76
1.65
30-year
1.91
2.01
1.90
Inflation -indexed long-term average 13
1.69
1.81
1.70
Interest rate swaps 14
0.52
0.50
0.50
1-year
0.96
0.90
0.93
2-year
1.43
1.38
1.43
3-year
1.89
1.84
1.91
4-year
2.31
2.27
2.34
5-year
2.95
2.92
3.00
7-year
3.52
3.46
3.55
10-year
4.23
4.20
4.26
30-year
Corporate bonds
Moody's seasoned
4.97
5.10
4.96
Asa 15
6.06
6.18
6.05
Baa
State & local bonds 16
Conventional mortgages 17
n.a. Not available.
-------------------------------------------------------------
Footnotes
1. The daily effective federal funds rate is a weighted average of rates on brokered trades.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the current week; monthly
figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
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. Source: Bloomberg and CTRB ICAP Fixed Income & Money Market Products.
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/2002/200210312/derault.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 FebruaryU16, 2002,Treasand
ry preintroduced
on February 9, 2006. From February 18, 2002, to February 9,
2006, the 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.treasury.gov/resource-center/data-chart-center/interest-rates/. Source: U.S. Treasury.
7
http://www.federalreserve.gov/Releases/H15/update/ 1/3/2011
FRB: H.15--Selected Interest Rates, Web -Only Daily Upaate--uecemucr )v, wry -d
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.treasury.gov/resource-center/data-chart-center/interest-rates/.
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?l.
ISDAFIX is a registered service mark of ISDA. Source: Reuters Limited.
15. Moody's Aaa rates through December 6, 2001, are averages of Aaa utility and Aaa industrial bond
rates. As of December 7, 2001, these rates are averages of Aaa industrial bonds only.
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
ation
out
iviul copies or
bscriptionscontact
Publicattionsr Services o at then FederalmReservebBoardnd(phonea202-452-3244, fax 202-728,5886).
________________
Description of the Treasury Nominal and Inflation -Indexed Constant Maturity Series
Yields on Treasury nominal securities at "constant maturity" are interpolated by the U.S. Treasury
from the daily yield curve for non -inflation -indexed Treasury securities. This curve, which relates
the yield on a security to its time to maturity, is based on the closing market bid yields on
actively traded Treasury securities in the over-the-counter market. These market yields are
calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The
constant maturity yield values are read from the yield curve at fixed maturities, currently 1, 3,
and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. This method provides a yield for a 10-year
maturity, for example, even if no outstanding security has exactly 10 years remaining to maturity.
Similarly, yields on inflation -indexed securities at "constant maturity" are interpolated from the
daily yield curve for Treasury inflation protected securities in the over-the-counter market. The
inflation -indexed constant maturity yields are read from this yield curve at fixed maturities,
currently 5, 7, 10, and 20 years.
Weekly release dates I Historical data I Data Download Program (DDP) I About I Announcements
Daily update Other formats: Screen reader I ASCII
Statistical releases
Home I Lconom_c resemch and dit4
Accessibility I('gntact Us
Last update: December 30, 2010
8
http://www.federalreserve,gov/Releases/H 15/update/
1/3/2011
FRB: Commercial Paper Rates and Uutstanaings
Federal Reserve Release
,,,...1,
Release I About I Announcements I Outstandin s I Volume statistics Year-end I Maturity Distribution I Data
Download Program (DDP)
Data as of December 31, 2010
Commercial Paper Rates and Outstanding
Derived from data supplied by The Depository Trust & Clearing Corporation
Posted January 3, 2011
D' ount rates
E
sc
FTerml�A2/an AA AA
nonfinancial nonfinancial financial asset -backed
1-day 0.17 0.33 0.10 0.20
7-day .17 00.34 0.23 0.36
15-day 0.19 0.36 0.10 0.28
30-day 0.17 n.a. 0.19 0.27
60-day 0.20 n.a. 0.21 0.31
90-day n.a. 0.23 0.34
n.a. 30-dav A2/P2 nonfnar
_
.
. n.a. an_na� aA nnnfnancial.
o
ar
Trade s
nonfinancial rates for December 31, 2010.
Yield curve
icial, 60-day A2/P2 nonfinancial, and 90-day A2/P2
9
http://www.federalreserve.gov/Releases/CP/ 1/3/2011
o
ar
Trade s
nonfinancial rates for December 31, 2010.
Yield curve
icial, 60-day A2/P2 nonfinancial, and 90-day A2/P2
9
http://www.federalreserve.gov/Releases/CP/ 1/3/2011
FRB: Commercial Paper Rates and Outstandings
Unnov, ni;irkpi hmi.q
— — — AA nonflimincial
AA finandid
Al
Percent
1 7 15 30 60 9C
Days to Maturity
Discount rate spread
Thirty -day A2fP2 less AA nonfinancial commercial paper (daily) Basis
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Discount rate history
LIAM
0.25
11101
800
700
600
500
400
300
200
100
0
10
http://www.federalreserve.gov/Releases/CP/ 1/3/2011
FKB: Commercial Paper Rates ana uutstanamgs
l ar,,G J VI ,
Thirly-day commercial paper (daily) rercent
®® AA nonfinancial
......... A2/P2 nonfinandal
-- 11finanuial
4 Cx
1
,• 1
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Outstandings
Weekly (Wednesday), seasonally adjusted
Billions of dollar.;
1240
1140
1040
940
840
740
640
540
440
340 2001 2003
7
6
5
4
3
2
1
0
Billions of dollars
280
2005 2007 2009
ME
200
>0
120
:X
The daily commercial paper release will usually be available before 11:00am EST. However, the Federal
Reserve Board makes no guarantee regarding the timing of the daily commercial paper release. When the
Federal Reserve Board is closed on a business day, rates for the previous business day will be available
through the Federal Reserve Board's Data Download Program (DDP). This policy is subject to change at
any time without notice.
Release I About I Announcements I Outstandings I Volume statistics I Year-end I Maturity Distribution I Data
Download Program (DDP)
11
http://www.federaireserve.gov/Releases/CP/ 1/3/2011
City of La Ouinta
Cash Flow
Budget to Actual
November 30, 2010
Cash Basis
Budget
Actual
Accrual/
Adjusted Total
Variance
11110
11I10
Ad ustment
11I10
Over Under
Not"
Account
9,B96
9,896
Property TaxlTax
9,896
229,686
302,957
90,40]
Higher Hotel Occupancy
upancy Tax
Transient Occupancy Tax
212,550
73,271
372,400
372AOp
76,224
Sales Tax
296,176
3B2,872
200,717
Golf pounds higher than budgeted
SilverRock Golf
182
382,8]2
(485)
Library
4B5
Riverside Cc Transportation Commission
847269
894,277
894,2]7
47,008
Otherrevenues
1,538,635
1,732,716
229,686
1,962,402
623,
Revenues
Expenditures
876,595
792,418
792,418
(84,17])
Police Expenditures 519l less', Public Works
Salaries 8 Fringe Benefits
1 818,240
368,419
Expendiwres 692k less than budget
nmor o.nanditures
2,186,659
1181 8,240
_.._ _�..
> atn fi6fl
1452,596)
12
INVESTMENT ADVISORY BOARD
Meeting Date: January 12, 2011
TITLE:
Pooled Money Investment Board Report
for October 2010
BACKGROUND:
Correspondence
& Written Material Item B
The Pooled Money Investment Board Report for October 2010 is included in the
agenda packet.
RECOMMENDATION:
Receive & File
John M. Falconer, Finance Director
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF OCTOBER 2010 WITH OCTOBER 2009
(DOLLARS IN THOUSANDS)
OCTOBER 2p10 OCTOBER 2009 CHANGE
Average Daily Portfolio
$
64,924,891
$
60,918,502
$
+4,006,389
Accrued Earnings
$
26,468
$
33,438
$
-6,970
Effective Yield
0.480
%
0.646
%
-0.166 %
Average Life -Month End (In Days)
191
253
-62
Total Security Transactions
Amount
$
35,257,908
$
25,864,993
$
+9,392,915
Number
720
526
+194
Total Time Deposit Transactions
Amount
$
3,770,000
$
4,227,100
$
-457,100
Number
150
177
-27
Average Workday Investment Activity
$
1,858,472
$
1,367,822
$
+490,650
Prescribed Demand Account Balances
For Services
$
1,543,885
$
965,133
$
+578,752
1
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
October 31, 2010
DIFFERENCE IN
PERCENT OF
PERCENT OF
PORTFOLIO FROM
TYPE OF SECURITY
AMOUNT
PORTFOLIO
PRIOR MONTH
Government
Bills
$
26,565,398
38.72
+1.99
Bonds
0
0.00
Notes
6,649,308
9.69
-0.15
Strips
0
0.00
Total Government
$
33,214,706
48.41
+1.84
Federal Agency Debentures
$
1,382,075
2.01
+0.40
Certificates of Deposit
5,400,000
7.87
-2.77
Bank Notes
100,000
0.15
-0.15
Bankers' Acceptances
0
0.00
0
Repurchases
500,000
0.73
+0.73
Federal Agency Discount Notes
7,278,005
10.61
+2.13
Time Deposits
4,191,650
6.11
-0.15
GNMAs
63
0.00
0
Commercial Paper
7,608,374
11.09
+1.36
FHLMC/Remics
584,007
0.85
-0.04
Corporate Bonds
0
0.00
0
AB 55 Loans
321,217
0.47
+0.02
GF Loans
7,721,400
11.26
-3.37
NOW Accounts
0
0.00
0
Other
300,000
0.44
0
Reversed Repurchases
0
0.00
0
Total (All Types)
$
68,601,497
100.00
INVESTMENT ACTIVITY
OCTOBER 2010
SEPTEMBER
2010
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
720
$ 35,257,908
487
$ 23,870,222
Other
16
1,431,702
13
$ 601,792
Time Deposits
150
3,770,000
124
$ 2,669,500
Totals
886
$ 40,459,610
624
$ 27,141,514
PMIA Monthly Average Effective Yield
0.480
0.500
Year to Date Yield Last Day of Month
0.506
0.516
2
Pooled Money Investment Account
Portfolio Composition
$68.6 Billion
10/31/10
Corporat
0.0(
Commercial Paper
11.09%
Repurchases
0.73%
Time Deposits
6.11%
CDs/BN
8.02%
Loans
11.73%
Agencies
13.06% Mortgages
0.85%
Treasuries
48.41 %
INVESTMENT ADVISORY BOARD Business Session: C
Meeting Date: January 12, 2011
ITEM TITLE:
November 9, 2010 Joint Meeting
Minutes with the City Council
BACKGROUND:
The minutes from the joint meeting with the City Council were approved at the
December 7, 2010 City Council meeting and are attached.
RECOMMENDATION:
Information item only.
John M. Falconer, Finance Director
Joint City Council/Commission 12 November 9, 2010
Meeting Minutes
1-C. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS
OF THE CITY COUNCIL AND INVESTMENT ADVISORY BOARD UABI.
PRESENT: Board Members Mortenson, Rassi, Spirtos, and
Chairman Park
ABSENT: Commissioner Blum
Chairman Park congratulated the incumbents on their re-election;
reported the Board conducted an extensive review of the workplan
and will revisit to make additional recommendations in June 2011;
intend to meet with auditors; wish to continue to serve the City
Council with liquidity and safety of investments; and stated Local
Agency Investment Fund (LAIF) will continue to be a challenge in the
future.
Council Member Franklin asked if the board members attended the
LAIF conference this year.
Board Member Mortenson stated the conference was an eye-opening
experience; observed the conduct of business personally compared to
the technical manner of doing business.
Chairman Park stated his experience was learning the good news that
some business is conducted personally.
Council Member Evans stated there was a limit to investing into LAIF.
Finance Director Falconer explained the State raised the maximum
permissible investment to $50 million per account but the Board
decided to remain at $40 million per account; the City has an overall
investment cap of 30% of our portfolio, which is $147 million cash,
even though the Investment Policy allows up to 80% of the $147
million.
Council Member Henderson stated LAIF has always been an issue with
the Board and City Council in regard to limitation and the political
aspect.
Finance Director Falconer stated he believes it got down to 25%.
Council Member Henderson stated the tenor of the political world has
been to lean toward LAIF in one direction or another; the City
continues to have a very conservative approach with LAIF and she
Joint City Council/Commission 13 November 9, 2010
Meeting Minutes
asked if the Board has seen it the same in the political world. Board
Member Mortenson confirmed.
Council Member Henderson asked if he has observed decision -makers
leaning toward a conservative approach in the financial world.
Board Member Mortenson stated the lean toward a conservative
approach may have played a role in personal beliefs but not how the
funds are invested.
Council Member Henderson stated at one time there was a concern
about overloading the Board and those decisions would be based on
"leanings," which is why the City has a conservative approach about
LAIF; the City has let the investment creep up to 30% and it would be
interesting to receive a report on the increase.
Board Member Mortenson stated who knows how much is political
and in essence supporting a certain belief.
Council Member Henderson suggested the Board think about the issue
personally and discuss it; stated there are limits established by LAIF,
and asked what the City can do with the money.
Finance Director Falconer stated the City has an Investment Policy and
there are limits established for investing in certain categories. Council
Member Henderson asked if there is more money that the categories
allow to invest. Finance Director Falconer explained as the portfolio
decreases, hopefully property taxes will increase in January and allow
more room; and stated we may have to look at alternative investments
or short-term treasury bills.
Council Member Sniff stated LAIF has had some bad investments and
enormous losses.
Finance Director Falconer explained CalPERS has a different
investment focus and has had a significant amount of losses but LAIF
has not had any losses.
Council Member Sniff asked where CalPERS invests their money.
Finance Director Falconer explained out of $1.7 billion, $600 million
were invested in U.S. Treasuries.
In response to Council Member Sniff, Finance Director Falconer stated
he is not aware of any secure investments at this time.
Joint City Council/Commission 14 November 9, 2010
Meeting Minutes
Finance Director Falconer stated PERS invests in hedge funds,
equities, bonds and have a lot more risk.
Mayor Adolph noted the interest shown on the PIERS annual statement
is tremendous at 6 or 8%, and he has not received nearly as much in
other investments.
Chairman Park cautioned against investing in hedge funds; and stated
the future challenge when interest increases will be where to invest
the City's funds as the investment policy restricts where it can go.
Board Member Spirtos commended the Board and staff; and stated it
is phenomenal that the city continues to adopt a balanced budget in
the current economic situation.
Council Member Sniff asked the Board what clever or new financial
device they would recommend to increase the City's income in the
next six months.
Board Member Mortenson stated the investment policy statement is
secure; and what we should be concerned about is monitoring our
debt which is deflating the dollar.
Chairperson Park noted you have to take risks to receive returns.
Council Member Sniff agreed there must be some precarious risk to
receive a higher income, but no one can command anything.
Chairman Park stated La Quinta is the envy of other cities.
Mayor Adolph stated the City must stay the course until the economy
improves.
Council Member Sniff asked if there are other municipal investment
boards in the Valley. Finance Director Falconer stated Palm Desert
has one and Indio has a finance committee.
Council Member Franklin conveyed pride in the Board and the work
they do.
Chairman Park adjourned the Investment Advisory Board meeting.