2011 05 11 IABP.O. BON 1504
LA QUINIA, CA1,11FORNIA 92247-1504
78-495 CAj.i.� TAMPICO 7 6 0) 7 7 7 - 7 0 0 0
LA QUINIA, CA] 11ORNIA 92253 1,AX (760) 777-7101
AGENDA
INVESTMENT ADVISORY BOARD
Caucus Room
78-495 Calle Tampico- La Quinta, CA 92253
May 11, 2011 - 4:00 P.M.
CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
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 April 13, 2011 for the Investment
Advisory Board.
V BUSINESS SESSION
A. Banking Services Presentation by Wells Fargo Bank
B. Transmittal of Treasury Report for March 2011
C. Continued Discussion of the Investment Advisory Board 2011/2012 Work
Plan and Fiscal Year 2011/12 Investment Policies
Vi CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
April 2011
B. Pooled Money Investment Board Reports on Hand for Review — February
2011
C. Update on California Municipal Treasurers Association Conference (CMTA)
Vil BOARD MEMBER ITEMS
Vill 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 rn�eting and accommodations will be made.
Any writings cr documents provided to a majority of the Investment Advisory Board regarding any item on this agenda will be
made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, CA 92253,
during normal business hours. &
INVESTMENT ADVISORY BOARD
MEETING
April 13, 2011
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 Vice -Chair Spirtos followed by the Pledge
of Allegiance.
PRESENT: Board Members Mortenson, Blum and Spirtos
ABSENT: Board Member Park
OTHERS PRESENT: John Falconer, Finance Director and Vianka
Orrantia, Senior Secretary
11 PUBLIC COMMENT — None
III CONFIRMATION OF AGENDA — Confirmed
IV CONSENT CALENDAR —
A. Approval of Minutes on March 9, 2011, for the Investment Advisory
Board.
Board Member Mortenson requested the following correction be made
to page 4, IV. Correspondence and Written Material, Item A:
Mr. Falconer commented that based on the current economic market,
and with the City at 4—E
LAIF's yield remains at 4 2% M, �% 50
Board Member Spirtos requested that the minutes reflect the Board's
appreciation of Mr. Genovese's attendance and also reflect his
departure prior to the continuation of review of the agenda. Board
concurred.
MOTION — It was moved by Board Member Mortenson/Blurn to
approve the Minutes of March 9, 2011 as amended. Motion carried
unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for February 2011
Mr. Falconer presented and reviewed the staff report for the month of
February advising of a $3 million decline in cash as a result of various
capital improvement projects reflected on page three of the report.
Those projects include approximately $350,000 spent on the Coral
Mountain Apartment project to be located near Costco Shopping
Center and $278,000 on improvements to the La Quinta Sports
Complex.
General discussion ensued amongst the Board and staff regarding the
Coral Mountain Apartment project and the dedication of the new
sports complex.
Mr. Falconer also advised of the investment activity for the month of
February which included a purchase of a $4 million investment in
commercial paper and a $20 million purchase of a Federal Home Loan
Bank Discount Note. Mr. Falconer further advised of the portfolio
performance which increased slightly by 3 basis points ending the
month at .46% and the pooled cash investments ending at .55%.
Mr. Falconer updated the Board on the status of the RDA close outs,
reducing the RDA's balance to zero until the Governor's budget
proposal is finaled. Mr. Falconer informed the Board of a proposal by
the League of California Cities to the governor allowing the RDA's to
make a direct payment to the schools based on set formula (the
formula would be based on housing funds and non -housing funds), in
return of this proposal it would allow the RDA's to extend their life
thus allowing collection of increments in the future.
General discussion ensued amongst the Board and staff regarding the
League's proposal and the impact to the City of the proposed
elimination of the RDA.
As a general note, Mr. Falconer advised the Board of the reported
decline to the population of the City from 42,000 to 37,000 resulting
in a future decrease in the gas tax received from the state.
2
Board Member Blum commented that based on conversation with
Council Member Franklin; there was a possible error in the census of
the City.
Mr. Falconer advised, as previously stated at the March meeting, the
City is working in conjunction with the Coachella Valley Water District
to realign a canal near SilverRock. If approved the City would have to
sell a $10 million T-Bill (which currently matures in June), to pay for a
portion of the realignment. Mr. Falconer further advised that page 6
reflects the 2002 CIP T-Bill to be used as payment, with the current
yield of maturity at .18 % and the market at . 10%.
In response to Board Member Blum, Mr. Falconer advised that the
selling of the T-Bill would give the City a slight gain and overall
positive affect to the yield.
General discussion ensued amongst the Board and staff regarding the
realignment of the canal.
MOTION — It was moved by Board Members Mortenson/Blum to
review, receive, and file the Treasurers Report for February 2011.
Motion carried unanimously.
B. Continued Consideration of Fiscal Year 2011 -2012 Investment Policies
& 2011-2012 Work Plan Items
Mr. Falconer advised that staff has been investigating other
alternatives to LAIF. At the March meeting, staff presented the Board
with the Riverside County Treasurer's Pooled Investment Fund as a
possible alternative, since then staff has come across another possible
alternative offered by Rabobank. Mr. Falconer informed the Board that
staff would present a verbal update on the program, due to the fact
that staff will be attending the upcoming CMTA conference; if there
were any other alternatives suggested by other' entities at the
conference, staff would present them all at the next scheduled board
meeting. Mr. Falconer advised that Rabobank has a collateralized
program, the bank will collateralize up to 110% of an investment with
them. The bank currently buys treasuries, which include Muni's and
GSE's held in trust by Union Bank, with a guarantee of 15% with
same day liquidity, which is 15 basis points over the current LAIF rate.
Mr. Falconer further advised that if this program was approved, it
would have to be incorporated into the investment policy.
91
General discussion ensued amongst the Board and staff regarding the
solidity of Rabobank and its rating, which currently stands at a "triple
A" rating, as well as allowable investments.
In response to Board Member Spirtos, Mr. Falconer advised that the
conferences attended by the Board and staff for fiscal year 2011-2012
will not be included in the budget.
Board Member Mortenson commented on the level of definition within
the policy such as a risked based rate of return and felt that levels
could be higher within the policy.
Mr. Falconer replied to Board Member Mortenson's comment and
summarized for the Board the history of the current definitions within
the policy.
MOTION — It was moved by Board Members Mortenson/Blum to
continue the review of the 2011-2012 Work Plan and the 2011-2012
Investment Policy. Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data — March
2012
Mr. Falconer presented and reviewed the Month End Cash Report for
the month of March advising the Board that page 2 reflects a slight
increase in the LAIF balance. Mr. Falconer also advised the Board on
LAIF's performance with a decrease from February at .55% ending the
month of March at .44%.
In response to Board Member Blum, Mr. Falconer advised that page 3
reflects 8.85% state loans.
In conclusion, Mr. Falconer advised that page 4 reflects a decline in
the yields.
Noted and Filed
B. Pooled Money Investment Board Reports — January 2012
Noted and Filed
VII BOARD MEMBER ITEMS - None
11
Board Member Spirtos advised the Board of the upcoming City events
scheduled for April 15" and April 301h.
Vill ADJOURNMENT
Motion — It was moved by Board Members Blum/Mortenson to adjourn the
meeting at "--P�m. Motion carried unanimously.
Submit d y,
Y
V nka Orr ntia
ia
Senior Secretary
5
INVESTMENT ADVISORY BOARD Business Session: A
Meeting Date: May 11, 2011
ITEM TITLE:
Banking Services Presentation by Wells Fargo Bank
BACKGROUND:
Wells Fargo Bank has approached the City about renewing their banking contract,
which is up for renewal on December 31, 2010. Ms. Lynn Love, Vice President
with the bank is prepared to make a presentation to the Board and answer any
questions. The bank has proposed an additional 25% savings from our current
rates and a 55% discount over standard pricing.
RECOMMENDATION:
Recommend to the City Council the negotiation of a three year banking contract with
Wells Fargo Bank.
NJohn M. Falconer, Finance Director
April 28, 2011
To: John Falconer, Finance Director
City of LaQuuita
78-795 Calle Tampico
LaQuinta, CA 92247
From: Lynn Love, Vice President
Wells Fargo Bank
Government & Institutional Banking
707 Wilshire Blvd., 11 th Floor
Los Angeles, CA 90017
Subject: Banking Services Contract
The City of LaQuinta's vision is to create and maintain a customer -centered city government
designed to garner the confidence, support and trust of the people you serve. Many years ago, the
City and Wells Fargo ventured into a partnership and we continue to strive to add value from a
financial perspective to help achieve this vision. The partnership has been very successful. The
City's complex and diverse needs have been paired well with Wells Fargo's relationship and technical
expertise, and our pledge to provide the highest level of customer service to help you meet your
goals. Given the importance of the City's relationship, we would like to propose a three year
agreement extension.
We offer a compelling justification to continue our partnersliip with the City:
• Financial Strength — As the largest and strongest bank with a holding company headquartered in
California, Wells Fargo meets the City's requirement for a financially sound institution.
• Local Community - Wells Fargo is a bank not only recognized for being financially sound, but
for being a good corporate citizen. We are proud of the consecutive "Outstanding?' Community
Reinvestment Act (CRA) ratings we have received. We promote economic development and
self-sufficiency through community development, financial education, cash contributions,
affordable housing, environmental stewardship, and through the efforts of our enthusiastic team
member volunteers. We also provide strong support from our local branches within the City —
critical for continuing to service all members of the community. Our presence within in the City
includes the following:
o 2 branch locations
* 5ATMs
* 51 employees
* 62 employee volunteer hours
o Contributions in 2010
0 $10,650 to nonprofits and schools through corporate and foundation giving
9 $1,575 in contributions through the annual team member Community Support
and United Way Campaign
City of LaQuinta
Extension Letter - Continued
$1,099 in contributions to match team member gifts to accredited educational
institutions, foundations, and Habitat for Humanity in 2010
• Expertise - Wells Fargo Bank has served the treasury needs of municipalities for over 150 years.
The Government Banking Division at Wells Fargo Bank is a team of seasoned professionals
dedicated exclusively to serving the unique banking needs of public agencies. We understand
the banking related laws and regulations with which you must comply and we know what
services are typically used by public agencies.
• Stability - A proven relationship team that has demonstrated a strong commitment to providing
superior customer service, led by Lynn Love, who has over 15 years of experience working with
public sector clients, and 10 specifically with the City of LaQuinta. Lynn and her team currently
provide similar services to other Southern California Cities: Los Angeles, Anaheim, Cathedral
City, Orange, Monrovia, and Hawthorne to name a few.
• Financial -
• Cost Reductions: Approximately 25% from current charges representing $5,076 annual
savings and $15,230 over the next three years.
• No Conversion: Savings from avoidance of time and effort required by your Treasury,
Finance and IT staff to manage a 3-6 month project.
Superior Technology - Wells Fargo is a recognized technology leader. We are prepared to
continue to partner with you to further your goal of creating improved operating and processing
efficiencies. Specifically, the City currently benefits from current Wells Fargo products and
service as highlighted below:
o A customized account structure including a zero balance account which facilitates the
searl-Aess transfer of funds automatically.
• A suite of comprehensive collection options, including an extensive branch network,
high capacity vault and item processing centers to improve funds availability, that
'provide greater efficiencies, and minimize the staff time involved in receivables
processing.
• Enhanced availability through sector -specific products: LAIF Processing and Same -Day
State Payments.
• Highest degree of fraud protection delivered through Positive Pay with Payee Validation
and Payment Authorization Service.
• Improved security and efficiency of disbursements by utilizing state -of the -art ACH and
wire processing with the highest security protocols.
• Real-time reporting to update the City's systems via Previous Day and Current Day
online reports through the Commercial Electronic OfficeS (CE09)) portal.
• Accurate monthly accounting of all services and corresponding volumes and the ability
to track fees and sort bang informa6on for trending purposes using account analysis
statements.
o Next day notification of all returned items, both paper and electronic, by viewing online
images of returned items.
Ongoing Training - Wells Fargo recognizes the importance of having the City feel comfortable
and confident using our services. To help us achieve this goal, we utilize the services of an
internal team of training professionals to develop on-line, cutung-edge learning solutions. Listed
below are several of the training options available to the City:
Cityol LaQuinta
Extension Letter - Continued
• On -Site Training: This is the primary training method used for the City.
• Instructor -led Programs via the Internet: These training sessions are sometimes called
"Webinars." During these learning sessions, City staff dials into a conference call while
following an interactive Internet presentation at the same time. Attendees may ask
questions of the instructor, find solutions to their unique issues, and interact with other
users.
• On-line Tutorials: These on -demand, pre-recorded training modules are available on
Wells Fargo's Internet portal, CEO. This type of training offers the flexibility for City
staff to do training whenever it is most convenient for them. On-line tutorials are
especially useful for training new hires or individuals learning a new job. These
audio/visual recordings are available 24 hours a day, 7 days a week.
• Customer Service: Although we provide many on-line training tools, our goal is to always
provide superior customer service and add a personal touch to our training. Your
dedicated Client Service Officer is always available and answer questions regarding usage
of your banking services.
Education - In addition to our on -going training support, Wells Fargo Bank hosts an annual
Electronic Payments Conference exclusively for our clients. We offer this conference at no
charge. Particular emphasis is placed on the use of technology. It is an excellent opportunity for
our valued clients, Eke the City, to hear directly from our senior product managers what new
products and services are becoming available to assist them in creating processing efficiencies.
Comn-utment - We are fully committed to providing outstanding customer service each and
every time you call upon us.
Partnersliip: An unwavering strong desire to continue our relationshJp with the City of
LaQuinta.
We are looking forward to continuing our relationship with the City as outlined above.
Very truly yours,
.444M ze"
Lynn Love
Vice President
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4
INVESTMENT ADVISORY BOARD Business Session: B
Meeting Date: May 11, 2011
ITEM TITLE:
Transmittal of Treasury Report
for March 2011
BACKGROUND:
Attached please find the Treasury Report March 2011
RECOMMENDATION:
Review, Receive and File the Treasury Report for March 2011
John M. Falconer, Finance Director
� 85 - #
MEMORANDUM
TO La Willa City Council
FROM John M Falconer, Finance DirectorrTreasurer
SUBJECT: Treasurers Report for March 31, 2011
DATE, May 2, 2011
Attached is the Treasurers Report for the month ending March 31, 2011. 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:
Be in
Be( I
P
ured
Other
K in
-ha�
C--
nves'ment
Investment
$
1: 1
2 ,
$
()00)
$ (2,600,000)
0 $
$
2!.� 17,858
11.800,000
LAIF
�:
'ab8
.400,000
..
'9 '� 'I
Certificates of Deposit
969.000
(2)
Ted
0000)
(10,000,000)
11,254
It 4, 9 11 �
I
(9.988.746
US Treasuries
724,998.581
FFunds
94,900,731
20,000.000
(2)
0000)
(25,000.000)
(15,581)
19,983,000
(5,015,581)
S Gov't Sponsored Enterprises
U US v so,
000J)
(9.000,000)
(1,658)
4.997,149
(4.001,658)
ommercial Paper
C Com . P Per
8.998,807
5,000.000
(2)
(2)
(5,000.000)
(10,970)
10,071
Corporate Notes
15,084.062
11)
Mutual
1.380�031
'949,070
Subtotal
$
158,
39,40U,UUU
Cash
Total
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.
2- 2�D I
Date
John M Falconer
F 'an',
inance DuectorrTreasurer
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 premiumidiscount 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.
Treasurer's Commentary
For the Month of March 2011
Cash Balances - The portfolio size decreased by $6.80 million to end the month at $157.22
million. The major reason for the decrease was $5.7 million spent on debt service payments
on March 1'. Major Capital Projects payment of approximately $4 million were made of which
$3.6 million were for land parcels in the Village between the Library and Old Town.
Investment Activity - The investment activity resulted in an average maturity increase of
eight (8) days from the prior month to end the month of February at 218 days. The Treasurer
follows a buy and hold investment policy with one (1) Commercial Paper purchase totaling $5
million and one (1) Federal Home Loan Bank Discount Notes totaling $20 million purchased.
The sweep account earned $15 in interest income for the month of February and the bank
fees for the month were $ 2,206 which resulted in a net decrease of $1,991 in real savings.
Portfolio Performance - The overall portfolio performance had a one (1) basis point decrease
from the prior month and ended at .45% for the month, with the pooled cash investments at
.55%. The portfolio yield should continue to stay at these levels for the near future. At this
time last year, the portfolio was yielding .47% 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 due to the Governor's FY 2011/12
budget proposal to eliminate Redevelopment Agencies state-wide. The Treasurer has reduced
the LAIF RDA Account to zero until the Governor's budget proposal is finaled.
With the decrease in LAIF, the Treasurer will be investing in commercial paper and Federal
Home Loan or Federal Farm Credit Sponsored Enterprises (GSE) and investigating alternatives
to LAIF.
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Comparative Rates of Interest
March 31. 2011
FY 07/08
FY U&09
FY OW10
FY 10111
Average I I Treasury Buls'Nuun I I Three
'o" "ove
August200C
494%
I — 1.
501%
- — 1.
4 97�,
46
4
495%
Sept2006
4 98"s.
501%
� 9v.
53
1
n9,7:,.
502%
0,32006
5001/.
502%
5 0 1 �.
67
4 96"'
5 10%
No, 2N6
5 04
03%
503%
62
4 �oy�
5 �3%
5 3%
Dett 2006
5 0811b
504%
506%
50
en,
4 ,
"I
5 16%
Jan 2007
5 18g,
5 12%
5 16%
64
s eft
5 18%
Feb 2007
5 19%
5 13%
5 17%
45
495%
521%
Me, 2007
521%
503%
5 15%
67
488%
522%
Apr2007
520%
5 14%
5 15%
42
484%
525%
Mar,2007
520%
5 05%
5 16-4
32
481%
525%
June 2007
5 19%
488%
5 10%
85
461%
526%
Jul, 2007
521%
490%
5 12%
129
480%
525%
August 2007
5 17%
485%
508%
109
459%
523%
Sept2007
5 16%
4 36%
506%
129
400%
5 14%
002007
5 11%
4 85%
502%
116
395%
496%
Noy2007
5 03-A
483%
496%
99
3 3u1%
480%
Dec2007
495%
343%
445%
123
339%
462%
Joe 2008
458%
333%
422%
96
231%
4,R5%
Feb 2006
4 12%
324%
385%
86
207%
3.78%
Ali
4 07%
2 BY%
367'/.
74
1 50%
340%
Apr2008
34E%
3 27%
34 1
82
4 70%
307%
may 2008
3 1�%
127
';:�
11
1.92%
289%
jutrle 2008
3 Os�%
1 g4
2 u.'.
"n
2 14%
188%
229%
2 15%
2 18%
2 79%
July 2008
299%
1 tI39%
2 77%
A'
1,70%
1 89%
214%
2 38fs
208%
278%
August 2006
3 Ifi%
92,
28,1,,
51
169%
1 96%
200%
2 13%
Z77%
Srp2008
281%
.2.1.
2 64%
37
1 42%
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1,72%
1,50%
207%
2 71%
002006
266%
2
2 � 1.�.
2g
090%
1 40%
145%
2 57%
Noy 2008
2 38%
2 36":
2t
614,
a 15%
049%
1 04%
1 25%
097%
2 35%
Dec 2008
160%
0
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1 6
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025%
059%
a 88%
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Jae 2009
1 36%
0 18%
1 23:,
82
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035%
043%
088%
031%
Feb 2009
1 2:N
7
030..
0 50%
061%
0 68%
048%
1 87%
182%
Mar 2009
126%
�
4
020%
0�2%
0 70%
088%
037%
161%
Apr2009
0 94%
0 18%
0 85%
54
031%
033%
059%
088%
028%
1 53%
%1., 2009
09.1%
0 18%
0 80,
80
018%
0 30%
053%
088%
023%
026%
1 38%
Jule, 2009
a 83%
0 29��
080.,
ill
020%
035%
0 55%
1 13%
028%
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July 2009
0 W16
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ill
0 19%
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24f.
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Auqu�t 2009
064%
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92
016%
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Sep12OO9
056%
031%
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112
0 12%
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100%
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002009
0 52%.
031%
050%
90
008%
019%
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ty
Ni 2009
056%
031%
0 53%
152
004%
014%
032%
075%
G 16%
0
Dre, 2009
0,53%
0 15%
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239
011%
020%
0 16%
100%
0 13%
n :7%
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Jan 2010
045%
0 15%
043%
179
006%
0 14%
034%
088%
0 15%
15811
Feb 2010
051%
0 16%
048%
162
0 13%
019%
032%
088%
020%
Man-2010
050%
0 16%
047%
172
0 15%
024%
0,38%
100%
023%
'u.'.
Apr2010
052%
0�16%
048%
162
0 15%
024%
049%
100%
Ulfo%
056%
May 2010
052%
0 16%
048%
116
0,17%
022%
037%
075%
032%
053%
June 20 10
0 54%
0 17%
045%
134
a 16%
022%
032%
063%
028%
053%
my 201D
050%
0 15%
047%
i19
0 16%
020%
030%
063%
025%
051%
August 2010
049%
0 15 %
046%
08
0,15%
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026%
038%
024 %
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Sopm2010
055%
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0 5 1
107
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88
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017%
023%
038%
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045%
rlo�2010
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0 l5s,
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54
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Due,2010
0 571.
0 14%
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Jan 2011
Ott%
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206
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Fet,2011
065%
a 17%
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--
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0
IL
INVESTMENT ADVISORY BOARD Business Session No. C
Meeting Date: May 11, 2011
TITLE:
Continued Discussion of the Investment Advisory Board 2011/12 Work Plan and
2011/12 Investment Policy
BACKGROUND:
Pursuant to State Legislation the City investment policies must be approved on an
annual basis by the City Council. 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 2011.
Staff has reviewed alternatives to LAIF and has identified the following possibilities:
Rabobank — Collateralized Deposit Account
County of Riverside — County Pool
California Asset Management Program
CalTrust
Cutwater Asset Management — Enhanced Cash Products
Staff has reviewed the alternatives and believes that the Rabobank Collateralized
Deposit Account Program, which is currently 15 basis points over LAIF, is an
alternative to consider. If this alternative is considered, this particular type of
investment would have to be incorporated into the investment policy. Staff has
included information regarding the Rabobank program.
RECOMMENDATION:
Continued review of the Investment Policy for approval by City Council in June
2011
John M. Falconer, Finance Director
NOTE: Please bring the attachments from last month's meeting for this item.
RABOBANK INTEREST RATES
ACTUAL
MONTH RABO SUM OF INT RATE
(LAIF) LAIF RATE PREMIUM RATES (ROUNDED)
MARCH
0.547%
0.20%
APRIL
0.588%
0.20%
MAY
0.560%
0.15%
JUNE
0.528%
0,15%
JULY
0.531%
0.15%
AUGUST
0.513%
0.15%
SEPTEMBER
0.500%
0.15%
OCTOBER
0.480%
0.15%
NOVEMBER
0.454%
0.15%
DECEMBER
0.462%
0.15%
JANUARY
0.538%
0.15%
0.747%
0.788%
0.710%
0.678%
0.681%
0.663%
0,650%
0.630%
0.604%
0.612%
0.688%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0.000%
0,000%
0.750%
0.790%
0.710%
0,678%
0.681%
0.663%
0.650%
0.630%
0.604%
0.612%
0.688%
EFFECTIVE
DATES
5-10 THRU 5-16
5- 17 THRU 6-14
6-15 THRU 7-14
7-15 THRU 8-15
8-16 THRU 9-14
9-15 THRU10-14
10-15THRU11-14
11-15THRU12-14
12-15THRUl-17-1
1-18THRU2-14-11
2-15THRU3-14-13
DAILY INT
RATE
0.00002054795
0.00002164384
0.00001945205
0.00001857534
0.00001865753
0.00001816438
0.00001780822
0.00001726027
0.00001654795
0.00001676712
0.00001884932
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
0.00000000000
6-15
t () "
BrokerlDealer Questionnaire
Firm Name:
CRD Number:
Office servicing account:
Address: yrz 'e've., ��o��-�P,64
Primary Representative: 9,-z�,n k'z 937-�O
Secondary Representative: -U—e�L� Le VrI
09'c� �-* le -
Telephone: (714) .7?7- �Sr--210'0 (' ? 14) LO 7 7
Fax: 016
E-mall. =.�4"
CRO Number: I
Branch Manager:
Telephone: _ 7559 t40-47—;'1719
Is your firm designated as a primary dealer by the Federal Reserve?. 40
If noti does your firm maintain an Inventory? (dealer status) tl 0
Is the firm registered With the California Department of Corporations? e7a
Is the firm and all its representatives registered with the NASD? /192
In what market sectors does the account representative specialize?
List three comparable public clients currently working with this representative.
Entity name, contact and phone number:
M011jeelD, COV�14/— 7;�-Ae�l k'e�ed%l — tl'449) -74--7-7/---,
(C,AWP01%F1WaND.FRQVWAP",U0Q
ZE't
- �2Y'0/
El
What are the market sectors In which your firm specializes? Indicate the firm's approximate
percent in the following market sectors for the previous year: Please feel free to provide
additional information regarding your firm's involvement in these sectors.
US Treasuries
US Agencies
Repo
MBS
CID
BA.
Corporate
CD i,,/e ora,
Otheir 41045v M-fj(r� 1qdCOV_W<, -w,/ siz!nry /�a 1111e,�s
Have any of your public -sector clients ever sustained or claimed a loss on a securities
transaction or loss of principal arising from a misunderstanding or misrepresentation of the ris
characteristics of a recommended instrument purchased through your
firm?, A 0
Does your firm have any pending litigation with public -sector clients, or have you been subject
to any within the last five years? /70
Has this firm, or the representative assigned to this account, been subject to a regulatory, stat,
or federal Investigation for alleged improper, fraudulent, disreputable or unfair activities relatec
to the sale of securities or money market instruments?
What reports, transaction confin-nations and paper trail will we rece�ve? '/OV rcce;ve
� - - 1� I - Z J /) I i I I
Describe the precautions taken by your firm t o protect the interests of the public when dealing
ental entity.
1V2Y119TV,e,r7,, et4d //0'%
Please provide a current copy of your firm's MRS Rule G-37 filing and registration filing with
the State of California Department of Corporations.
Attached is our investment Policy. The representative assigned to the account must
acknowledge that they have received, read and understood the Policy, dated by signing below.
Signature: Name & Title:
Signature: Name&Tftle: 71-e_e�:nz
V?,�e% 6"
Please attach complete delivery Instructions.
lr�
All transactions will be completed Delivery versus Payment.
(0'.1WF8AVff"ND.PAOUWAPPV.MO)
q, L,) - to
5
Page I of 3
Van Diemen, Nick
From: Legg, J (Jerry) [Jerry. Legg@rabobank.com]
Sent: Tuesday, December 07, 2010 12:37 PM
To: Van Diemen, Nick; Khan, Shabbir; King, B (Brian)
Subject: Protection Available from Collateral
Hi everyone,
I heard there were some questions regarding the protection of collateral as regards to public funds on
deposit at banks such as Rabobank. The information below should answer any questions and set all
public entities at ease that their funds are indeed protected and that you do have a perfected security
interest in the under lying collateral.
All California public entities that deposit funds into banks, savings and loans and credit unions are
protected and have a perfected security interest in the underlying collateral pledged to secure those
funds as per Government Code. The following Government Code Sections address the agreement
between the depository and the public entity, the pledging of and liquidation of securities to collateralize
the funds on deposit, and the means by which public entities are reimbursed those deposits. -
Government Code Section 53649 explains the Contract for Deposit of Monies executed between the
depository and the Treasurer (of the public entity):
53649. The treasurer is responsible for the safekeeping of money in
his or her custody and shall enter into any contract with a
depository relating to any deposit which in his or her judgment is to
the public advantage. The depository, and the agent of depository to
the extent the agent of depository has been notified of deposits and
the amount thereof, are responsible for securing moneys deposited
pursuant to such a contract in accordance with Section 53652. One
copy of each contract shall be filed with the auditcr, controller,
secretary, or corresponding officer of the local agency. The contract
shall:
(a) Fix the duration of deposits, if appropriate.
(b) Fix the interest rate, if any.
(c) Provide conditions for withdrawal and repayment.
(d) Provide for placement of pooled securities in a named agent of
depository in accordance with Section 53656.
(e) Grant authority for agent of depository to place securities
for safekeeping in accordance with Section 53659.
(f) Set forth in accordance with Section 53665 the conditions upon
which the administrator shall order pooled securities converted into
money for the benefit of the local agency, and the procedure
therefore.
(g) Provide for compliance in all respects with the provisions of
this article and other applicable provisions of law.
(h) Provide, upon notice to the treasurer from the administrator,
that a treasurer may withdraw deposits in the event a depository
fails to pay the assessments, fines, or penalties assessed by the
administrator or may withdraw authorization for the placement of
pooled securities in an agent of depository in the event that the
agent of depository fails to pay the fines or penalties assessed by
the administrator.
Government Code Section 53656 explains that the collateral shall not be released unless ordered by
the Administrator (Department of Financial Institutions) in the event of a state or federal regulatory
12/7/2010
6
Page 2 of 3
takeover of the depository or by a conservator:
53656. (a) At the time the treasurer enters into a contract with
the depository pursuant to Section 53649, he or she shall authorize
the agent of depository designated by the depository, but including
the trust department of the depository only when acceptable to both
the treasurer and the depository, to hold securities of the
depository in accordance with this article to secure the deposit of
the local agency.
(b) Only those trust companies and trust departments, or the
Federal Home Loan Bank of San Francisco, which have been authorized
by the administrator pursuant to Section 53657 shall be authorized by
treasurers to act as agents of depository.
(c) The securities are subject to order of Lhe depository in
accordance with Section 53654 except when the provisions of
subdivision (i) of Section 53661 and Section 53665 are in effect.
(d) An agent of depository shall not release any security held to
secure a local agency deposit in a depository unless the
administrator issues an order authorizing the release where either of
the following occurs:
(1) A state or federal regulatory agency has taken possession of
the depository.
(2) A conservator, receiver, or other legal custodian has been
appointed for the depository.
Government Code Section 53658 explains that each local agency shall have an "undivided security
interest" in the underlying securities in the proportion that their deposits bears to the total amount of the
deposits secured by the collateral. In other words, public entities will get their deposits back.
53658. An agent of a depository may bold and pool securities to
secure deposits for one or more depositories pursuant to Section
53656, but shall maintain a separate pool for each said depository.
Each local agency shall have an undivided security interest in the
pooled securities in the proportion that the amount of its deposits
bears to the total amount of deposits secured by the pooled
securities.
Each public client should have an executed copy of their Contract for Deposit of Monies. Please let me
know if you do not and I will send you an additional copy for your records. Rabobank is proud to
partner with so many public entities around the state and takes its responsibilities very seriously. We
adhere to Government Code to protect our customers and serve to provide safe, liquid depository
options with competitive rates of return.
Should you have any further questions or concerns, please do not hesitate to contact me directly.
Best regards,
Jerry Legg
Vice President, Government Banking Manager
Rabobank N.A.
Government Banking Group
916 Highland Pointe Dr., Suite 350
Roseville, CA 95678
Mail Stop - RNA - 91496-01
Telephone: (916) 797-8210
Internal extension : 18210
Mobile: (916) 439-2131
Fax : (916) 784-1605
Email: Jerry.Legq@rabobank.com
Web site: www,rabobankamerica.com
12n/2olo
7
Page 3 of 3
This email (including any attachments to it) is confidential, legally privileged, subject to copyright and is sent for the
personal attention of the intended recipient only. if you have received this email in error, please advise us immediately and
delete it. You are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this
information is strictly prohibited. Although we have taken reasonable precautions to ensure no viruses are present in this
email, we cannot accept responsibility for any loss or damage arising fi-om the viruses in this email or attachments, We
exclude any liability for the content of this email, or for the consequences of any actions taken on the basis of the information
provided in this email or its attachments, unless that information is subsequently confirmed in writing. If this email contains
an offer, that should be considered as an invitation to treat.
12/7/2010
8
The World's Safest Banks 2010
G16M Finance selects the world's safest banks, the 50 Institutions with the highest ratings from the
leading International credit ratings agencies.
t is a measure of how much stability has returned to the
global banking industry that this year's list of the world's
50 safest banks is remarkably similar to last year's. Bar
a bit ofjockeying for position, the safest 20 banks remain
practically the same as a year ago. Within the top 20 there
has been some shufffing--for example, 2 pair of down-
grades served to knock BNP Paribas out of the top 10 and CM&C
down to 18th place. J&
Renterbank, a perennial feature at the top of the saf-
est banks list, attributes its longstanding trio of triple-A ratings to its government
backing --a characteristic shared by several of the world's safest banks. "The back-
ing by the Federal Republic of Germany as one of the strongest sovereigns in the
world is an extremely valuable asset in times of uncertainty. It underpins the safety
and great relative value we offer our investors:'says Horst Reinhardt, a member of
Rentenbank's board of managing directors.
Topping the table for the second year running is Germany's KIW, which also has
an explicit government guarantee. CEO Ulrich Scludder says, "KfW has a strong
liquidity position and capital base. As one of the leading and most experienced pro-
motional banks in the world, KfW benefits from a direct and explicit guarantee from
the Federal Repubhc.Ve use our knowledge and our strength to improve economic,
social and ecological living conditions."
Rabobank's CFO Bert Bruggink says the bank's clients believe the award vali-
dates the trust they place in the bank, adding, "The award is a confirmation of
Rabobank's strong capital position, robust balance sheet and continuous strong
results during the recent years."
Whil - e the st I andings of di e banks in the top 10 have barely changed in the past year,
further down the list there have been more changes, particularly as banks have built
credibility --and their credit ratings —in the wake of the credit crunch. Upgrades
from S&P and Moody's sent Switzerlandls Credit Suisse soaring from 43rd place
last year to 26th this year, but a double downgrade from Moody's pushed Deutsche
Bank down 11 places to 39th.
Nordic banks have suffered across the board with Swedens Nordea and
Svenska Handelsbanken each tumbling by six places to the upper 205 from
the lower 20s and Finland's Pobjola Bank slipping six places on a downgrade
based on long -
is kino-temn bank
have been ornitteld. Wilthin each iank set, banks are rated according to asset size, Ratings are
reproduced With'permission from the three ratings agencies, With all rights reserved. A rating Is
not a recommendation to purchase, sell or hold a security. and it does not comment on market
price or suitability for a particular investor. Because Moody's uses different ratings from the
other agencies, equivalents are shown in the table on the right.
from Moody's. Norway's DnB NOR
dropped off the list completely —a
fate shared by Portugal's Caixa Geral
de Dep6sitos, its abrupt departure
from the safest banks list reflecting
that country's financial woes.
With Western European banks tight-
ening their stranglehold over the global
safest banks list this year we have, for the
first time, listed safest banks by region.
The regional breakdowns reveal some
dear trends, with Singapore's banks
clearly outstripping Japan's as the saf-
est in Asia, and Chile's banks dominat-
ing the Latin America safest list. Perhaps
not surprisingly, Canada's hold sway in
North America, while Saudi Arabia's
banks have eked out a similar numerical
advantage in the Middle East, although
Kuwait and the UAE boast the only
two banks from the region to make it
onto the global top 50.
As always, we have constructed our
rankings based on size and credit qual-
ity. We began with a pool of 500 of
the world's largest banks by asset size
to which we applied the most recent
available ratings from Fitch Ratings,
Moody's Investors Service and Stan-
dard & Poor's, with appropriate weight-
ings. Where different banks were rated
equally by all three ratings agencies, die
largest of the banks was awarded the
highest ranking.
FFilch Ralings/Stindard & Pool 5 1 N'lood
ili�l iij
AAA
Aaa
AA+
Alit
AA
I Aa2
AA-
MA1
A+
A
A2
A-
AQ
�;,Totio
s z5ates7-L-i5aqK-s--z lit,,;
4V
. .....
1
KfW
I Gormanv
I AAA
I ARA
I- AAA I
AG
2
Calses des Ddp8ts at Consignations (CDC)
France
AAA
ATa
�M
368.2
3
Bank Nederlartdae Gerneeran
Z�Z
-Z;
;�A
149.7
4
Urcher Kantonalbank
switzed"
AAA
Aaa
AAA
113.2
5
Landwirtechaftilche Rentenbank
Germany
�;A
�11 a
6
Rabobank Grouo
Mfk.A..A.
AAA
A..
*A.
- I L-
10
12
13
14
Is
16
17
18
19
-iT
21
-ii-
23
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25
26
-i7
go
29
31
32
33
34
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38
-i7
38
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40
41
44
45
48
'V
Bank
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UnIted Ovemoaa Bank
Netherlands
Germany
AAA
AA-
AA
AA
AA
-
AA-
Aaa
Aal
Aaa
-;Z
Aal
Aal
Aa2
"�Z
NIR
AAA
AA
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AA
AA
M-
75.1
2301
6D4.0
577.4
520.5
--i�l 5
1,590.8
513.8
Ginada
Australia
Australla
Aus#alla
SpWn
--
Fanada
UK;
NaticInal Bank of Kuwait
DwAscho Bank
JAMorgan Chaso
Socl&6 Giindrale
Wells Fargo
Banque F6ddrati",du Crddk:Mutuof(13FCM),
Landesbank Siden-ftemernberg
Cr6clft Inclu"I at Comnwrclal (CIC)
U.S. Bancorp
Shizuoka Bank
AA
AA
IiW
Aa2
A —A-
421.1
423
2,947.7
Igdom
Z�
AA
2,364.5
AA-
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2,243.5
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AA�
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AA-
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76&5
467.8
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184.1
AA
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149.3
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1,ODO.9
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389.6
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115.9
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AA-
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895.1
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309.8
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2,032.0
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AA3,
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, -63.6--,
10
World's Safest Banks I B )v )��I) t<o
The World's Safest
Banks 2009
Global Finance selects the world's safest banks, the 50 institutions with
the highest ratings from the leading international credit ratings agencies.
fter two tumultuous years that saw many of the world's most % A of banks to join the ranks
respected banks drop out of the top-50 safest banks list, the dust *N of the world's si&st. New -
appears to be settling. Those banks that kept an imn grip on A comers this year include
their risk exposure before the financial crisis have consistently topped banks ftom Finland, the
0
the table and maintain their standing among the top echelon in this UAE and Kuwait, less well -
year's ranking. At the same time, the big -name banks that lost their saf- known institutions whose
est bank ranking during the credit crunch are still absent from the list as solid credit ratings have put
they struggle to rebuild their credit standing. GM them on a par with some of
-ranking banks are mostly unchanged from &CE
Reassuringly, the very top ==.. the banking world's most
previous years, but the composition of the rest of the list clearly illus- recognizable names.
trates the level of upheaval that the global banking and financial world has under- As always, we have constructed our
gone. The number of banks from tightly regulated countries such as Canada and ranking based on size and credit qual-
Australia is growing as those banks displace their peers from the UK and the US. ity. We began with a pool of 500 of
Gone from this year's ranking are all but two financial institutions from Britain, the world's largest banks by asset size
reflecting the carnage in the UK banking industry over the past year.While the to which we applied the most re -
US banks post a much better showing than the UK%, their collective standing has cent available ratings from Fitch Rat-
fallensh ply� and theX_ncTrfeature only toward the bottom of the safest banks list. ings, Moody's Investors Service and
Rabobank CFO Bert Bruggink surns up the characteristics that ensure banks Standard & Poor's, with appropriate
appear year after year on the list of the world's safest: "A robust balance sheet, stable weightings. Where different banks
profit growth.and a high Tier I ratio are prerequisites for Rabobank to be able to were rated equally by all three ratings
sustain our position as one of the world's safest banks:'he says. agencies, the largest of the banks was
The slump in the credit ratings of many banks opened the door for a new crop awarded the highest ranking.
The,salest banks chart compares the ratings for the world's 50 safest banks, based an long-
torm foreign currency ratings from Fitch Ratings and Standard & Poor's and the long-term bank
deposit ratings from Moodyt Investors Service. Whom possiblejokling companies have been
rated rather than subsidiary banks, and government Import-export finance institutions hew been
omitted. Within each rank set, banks are rated according to assat size. aetings are reproduced
with permission from the three ratings agencies, with all rights reserved. A rating Is not a
recommendation to purchase, sell or hold a security, and it does not comment on market price or
suitability for a particular investor Because lvloody�s uses different ratings from the other agencies,
equivalents are shown in the table on the right.
, 'F
,it'cWRatings/Standard & Poor's � Mo-ody's]
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1_� A
Rabobank
Contract For Deposit of Monies
THIS CONTRACT, relating to the deposit of monies, made as of —, between _, (hereinafter
designated "Treasurer") acting in his or her official capacity as — (Treasurer, Finance Director, etc.), of
(hereinafter designated "Depositor"), and RABOBANK, N.A., (hereinafter designated Depository),
having a shareholder's equity of One Billion Nine Hundred Ten Million Three Hundred Ninety Eight
Thousand Five Hundred Seventy Nine Dollars ($1,910,398,579) as of 12/31/2009.
WITNESSETH
WHEREAS, the Treasurer proposes to deposit in the Depository from time to time, commencing on 1
20 , monies in his custody in an aggregate amount on deposit at any one time not to exceed N/A Dollars
(MA), or the total of the paid -up capital and surplus of the Depository, whichever is the lesser amount, and
said monies will be deposited subject to Title 5, Division 2, Part 1, Chapter 4, Article 2 (commencing with
Section 53630) of the Government Code of the State of California; and
WHEREAS, said provisions of the Government Code require the Treasurer to enter into a contract with the
Depository setting forth the conditions upon which said monies are deposited; and
WHEREAS, in the judgment of the Treasurer, this contract is to the public advantage;
NOW, THEREFORE, it is agreed between the par -ties hereto as follows:
1. This contract cancels and supersedes any previous contracts between the Treasurer and the Depository
relating to the method of handling and collateralization of deposits of monies.
I. This contract but not deposits then held hereunder, shall be subject to termination by the Treasurer or the
Depository a; any time upon 30 days written notice. Deposits may be withdrawn in accordance with the
agreement of the parties and applicable federal and state statutes, rules and regulations. This contract is
subject to modification or termination upon enactment of any statute, rule or regulation, state or federal,
which, in the opinion of the Administrator of the Local Agency Security, is inconsistent herewith,
including any changes relative to the payment of interest upon monies so deposited by the Treasurer.
Upon notification from the administrator, the Treasurer may withdraw deposits in the event the
Depository fails to pay assessments, fines, or penalties assessed by the administrator.
3. Interest shall accrue on any monies so deposited as permitted by any act of the Congress of the United
States or by any rule or regulation of any department or agency of the Federal Government adopted
pursuant thereto. If interest may legally be paid, all monies deposited in accordance with this contract
ADM-3 82 (03/10) MIDO FinancelTreasury I
13
shall bear interest at a rate agreed upon by the Treasurer and the Depository.
4. The Depository shall issue to the Treasurer at the time of each inactive deposit, a receipt on a form agreed
to by the Depository and the Treasurer, stating the interest to be paid, if any, the duration of the deposit,
the frequency of interest payments, and the terms of withdrawal. Each such deposit receipt is by
reference made a part of this contract.
5. As security for said deposit, the Depository shall at all times maintain with the Agent of Depository
named herein, commencing forthwith, eligible securities having a market value at least 10% in excess of
the actual total amount of local agency monies on deposit with the Depository. If any eligible security is
determined by the administrator of Local Agency Security of the state of California in accordance with
Government Code Section 53661 to be not qualified to secure public deposits, additional security shall be
substituted immediately by the Depository, as necessary, to comply with the requirements of this
Paragraph.
6. Eligible securities are those listed in Government Code Section 53651.
7. The Agent of Depository, authorized by the Treasurer and the Depository to hold the eligible securities
posted as collateral under this contract, is Union Bank of California, N.A. (see Section 8 below). Said
Agent of Depository has filed with the Administrator of Local Agency Security of the State of California
an agreement to comply in all respects with the provisions of Title 5, Division 2, Part 1, Chapter 4, Article
2 (commencing with Section 53630) of the Government Code.
8. Authority for placement of securities for safekeeping in accordance with Government Code Section
53659 is hereby granted to the Agent of Depository, including placement with any Federal Reserve Banks
or branch thereof, pursuant to Government Code section 53657, or the Federal Home Loan Bank of San
Francisco.
9. If the Depository fails to pay all or part of any deposits of the Treasurer which are subject to this contract
when ordered to do so in accordance with the terms of withdrawal set forth on the deposit receipt (which
is by reference made a part hereof), the Treasurer will immediately notify, in writing, the Administrator of
Local Agency Security. Action of the Administrator in converting the collateral required by Paragraph 5
above for the benefit of the Treasurer is governed by Government Code Section 53665.
10. The Depository may add, substitute or withdraw eligible securities being used as security for deposits
made hereunder in accordance with Government Code Section 53654, provided the requirements of
Paragraph 5 above are met.
11. The Depository shall have and hereby reserves the right to collect the interest on the securities, except in
cases where the securities are liable to sale or are sold or converted in accordance with the provisions of
Government code Section 53665.
12. The Depository shall bear and pay the expense of transportation of eligible securities maintained as
collateral to and from the designated Agent of Depository.
13. This contract, the parties hereto, and all deposits governed by this contract shall be subject in all respects
to Title 5, Division 2, Part 1, Chapter 4, Article 2 (commencing with Section 53630) of the Government
Code, and of all other state and federal laws, statutes, rules and regulations applicable to such deposits,
whether now in force or hereafter enacted or promulgates, all of which are by this reference made a part
hereof.
14. The Treasurer named herein waives the right to collateral based on insurance provided by the Federal
Deposit Insurance Corporation not to exceed the maximum amount insured pursuant to federal law, in
accordance with Government Code section 53653.
IN WITNESS WHEREOF, the Treasurer in his official capacity has signed this contract in duplicate and the
Depository has caused this contract to be executed in like number by its duly authorized officers.
ADM-382 (03/10) MIDO FinancelTreasury 2
14
PUBLIC ENTITY TREASURER Rabobank, N.A. (Treasury Department only)
Randall Shell - SVP/Treasurer
By: By:
By: By:
ADM-382 (03/10) MIDO FinancelTreasury
15
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19
CITY OF LA QUINTA
Investment Policy vft�
Fiscal Year 2010/2011 URAFT
Table of Contents
Section
isli!9
Pag
Executive Summary
2
1
General Purpose
4
11
Investment Policy
4
III
Scope
4
IV
Objectives
4
0. Safety of Principal
1� Provide Liquidity
ll� Yield A Risk -Based Market Rate Of Return
V
Maximum Maturities
6
VI
Prudence
6
VII
Authority
7
Vill
Ethics and Conflicts of Interest
7
IX
Authorized Financial Dealers and Institutions
7
1� Broker/Dealers
1� Financial Institutions
X
Permissible Deposits and Investments
8
XI
Investment Pools
12
Xii
Payment and Custody
13
XIII
Interest Earning Distribution Policy
13
XIV
Internal Controls and Independent Auditors
13
XV
Reporting Standards
14
XVI
Financial Assets and Investment Activity Not Subject to this Policy
15
XVII
Investment of Bond Proceeds
15
Xill
Investment Advisory Board - City of La Quinta
16
XIX
Investment Policy Adoption
16
Appendices lqpk
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
1
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 Housing Authorities (the"City").
It is the City's policy to deposit and invest public funds in a manner that shall provide:
0- Safety of principal;
1� Liquidity to meet all of the City's obligations and requirements that may be reasonably
anticipated;
I- 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:
0- Safeguard assets;
0- The orderly and efficient conduct of its business, including adherence to all City
management policies;
0- Prevention or detection of errors and fraud;
I- The accuracy and completeness of accounting records;
1� 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 Bill, and the one
and two-year U.S. Treasury Note, 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.
City of La Quinta
Statement of Investment Policy
July 1, 2010 through June 30, 2011
Adopted by the City Council on June 15, 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.
I] 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 and Housing Authorities (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
10, Internal Service
ll� Trust and Agency
11� 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:
Safety of Principal
Safety of principal is the foremost objective of the City's investment program.
M
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:
1� Limiting investments to investment grade securities as permitted in Section X;
0, 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:
b, 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
0- 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 1.
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.
.V
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 Bill, and one and two-year U.S. Treasury Note,
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 ten
years. For FY 2010/2011, the amount of such funds is projected to be $30 million. Funds up to
that amount may be invested in U.S. Treasury bills, notes and bonds Local Agency Obligations,
and California Local Agency Obligations maturing between 3 and 10 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.
V1 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."
R
Vil 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:
ll� Current audited financial statements;
0� Proof of Financial Industry Regulatory Authority (FINRA) Certification;
ll� Trading resolution;
1� Proof of California registration;
1� Resume of Financial broker; and
ll� 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.
7
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:
ll� Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-
800-289-9999).
ll� 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 co I lateral ization 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
Maximum
Maximum
(See Appendix A for Additional Information)
Allocation
Maturity
Restrictions
Checking & Savings Accounts FDIC Insured & Sweep Accounts
85% Portfolio
Current
Sweep Account:
U.S. Treasuries
On Demand
and/or GSE's
— $250,000,
Certificates of Deposit
60% Portfolio
3 Years
including interest
per institution
U.S. Treasury Bills, Notes and Bonds, and Government N
Mortgage Association (GNMA) Securities
3 YeE
Permissible Investments and Limitations
Maximum
Maximum
(See Appendix A for Additional Information)
Allocation
Maturity
Restrictions
$30,0000,000
maturing 3-10
Local Agency Bonds/California Local Agency Obligations
100% Portfolio
10 Years
Yrs.
Long term
"A, A2, A" or
better
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 (FHLB)
$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
Prime Commercial Paper including Temporary Liquidity Guarantee
15% Portfolio
90 Days
$5,000,000 per
Program (TLGP)
issuer maximum.
Local Agency Investment Fund (LAIF)
30% Portfolio
Current 1
$40 million
On Demand
per account.
Money market mutual funds regulated by the SEC that consist only of US
20% Portfolio
Current /
Maintain $1 per
Treasury Securities or GSE's and maintain a par value of $1 per share
On Demand
share par value
$5.000,000 max
Corporate Notes
10%
3 Years
per issuer AA
rated or better
$10,000,000 max
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP)
20%
3 Years
per issuer, AA
rated or better.
Requires
Professionally Managed Account
10%
3 Years
City Council -
I
I
Approved RFP
Long -Term Scale
S&P AAA, AA +, AA, AA-, A+, A
Moody's Aaa, Aal, Aa2, Aa3, Al, A2
Fitch AAA, AA +, AA, AA-, A+, A
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 110% 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:
1.01,
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.
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 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 IFLB) 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 2010/2011, 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.
10
6. State Treasurer's Local Agency Investment Fund (LAIF) - As authorized in Government
Code Section 16429.1 and by LAIF procedures, local government agencies are each
authorized to invest a maximum of $50 million per account in this investment program
administered by the California State Treasurer.
The City Treasurer may not invest more than $40 million per account in LAIF.
The City's investment in LAW 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 LAW 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 (11 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:
1� Maturities shall not exceed three years from date of purchase.
10� Eligible notes shall be regularly quoted and traded in the marketplace.
101 Eligible notes shall be rated "Wor better.
0. 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
ll� 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.
11
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;
(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.
10. Local Agency Bonds and California Local Agency Obligations — The City may invest in
California local agency obligations pursuant to 56301 (a) and 53301 (e). 53601 (a) pertains
to investing in bonds issued by a local agency, department, board, agency or authority of
the local agency. 53601 (e) pertains to investing in bonds and other defined indebtedness
of a local agency or department, board, agency or authority of the local agency within the
State of California.
The City's Investment Policy limits investments in Local Agency Bonds and California
Local Agency obligations to 30% of the portfolio with up to a ten year maximum maturity.
In addition, the Agency obligations must be invested in the long term rating of A, A2, A or
better by S&P, Moody's or Fitch is met,
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. If the case of secondary issues, the Treasurer will rely
on the approved Broker/Dealers.
X1 INVESTMENT POOLS
There are three (3) types of investment pools:
0- State -run pools (e.g., LAIF);
1� Pools that are operated by a political subdivision where allowed by law and the political
subdivision is the trustee (e.g., County Pools);
0, Pools that are operated for profit by third parties.
12
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 and
Housing Authorities and allocate interest earnings, in the following order, as follows:
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:
ll� Safeguard assets;
ll� The orderly and efficient conduct of its business, including adherence to management
policies;
0- Prevention or detection of errors and fraud;
0� The accuracy and completeness of accounting records; and
1� 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.
13
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
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 oartv 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
14
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:
11� A certification by the City Treasurer.
0� A listing of purchases and sales/maturities of investments.
0. Cash and Investments categorized by authorized investments, except for LAW
which will be provided quarterly and show yield and maturity.
11� Comparison of month end actual holdings to Investment Policy limitations.
0� Current year and prior year monthly history of cash and investments for trend
analysis.
1� Balance Sheet.
1� Distribution of cash and investment balances by fund.
1� A year to date historical cash flow analysis and projection for the next six months.
0. A two-year list of historical interest rates.
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;
P. 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.
15
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.
3. Review monthly treasury report and note compliance with the Investment Policy and
adequacy of cash and investments for anticipated obligations;
4. Receive and consider other reports provided by the City Treasurer;
5. 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;
6. 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.
The Investment Policy shall be adopted by resolution of the City Council annually before the end
of June of each year.
16
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9
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.
M01
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
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
Appendix F
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1 . Name of Firm:
2. Address:
3. Telephone:
4. Broker's Representative to the City (attach resume):
Name:
Title:
Telephone:
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 Date
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
21.
22.
23.
24.
Please list your FINRA/NASD Registration Number,
Do you have any relatives who work at the City of La Quinta?
Yes— No— if yes, Name and Department_
Do you maintain an office in California?
Do you maintain an office in La Quinta or Riverside County?
Yes No -
Yes No
25. Please enclose the following:
0� Latest audited financial statements.
0� Samples of reports, transaction confirmations and any other research/publications the
City will receive.
0, Samples of research reports and/or publications that your firm regularly provides to
clients.
0, Complete schedule of fees and charges for various transactions.
WV
'CERTIFICATION'
I 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 Representative
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
1. 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 [Timel 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.
Ill. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
W.
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.
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
Other Restrictive
Number operating Funds Number of Funds
of Clients Clients
N/A N/A
N/A N/A
104-01
Corporate N/A N/A
High Net Worth Client N/A N/A
Endowmental/Foun- N/A N/A
dation
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
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify
Percent by Market
Value
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 11 (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
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.
Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
[Board/Councill'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 92247-1504
Attention: John Falconer, Finance Director/Treasurer
2. Proposal must be received no later than fTimel PST on [Month, Day, and Year].
32
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
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Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are 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 proGess. There is investment risk associated with any
investment activity 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 53601). 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
structures, or those issued by little known companies, are examples of "story bonds" and are 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 represents the possibility that the borrower may be unable to repay the obligation as
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 11. Fund Management
Local Agency Investment Guidelines 2010 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 cornmission.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a
certificate. Larg e-denomi nation 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).
DISCOUNT: The difference between the cost price
of a security and its maturity when quoted at
ff.,
lower than face value. A security selling below
original offering price shortly after sale also is
considered to be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a
discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering
independent returns.
3
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 $5,000. The notes
are issued with maturities of less than one
year and interest is paid at maturity.
3. FLBs lFederal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The
minimum denomination is$ 1,000. They carry
semi-annual coupons. Interest is calculated on
a 360-day, 30 day month basis.
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
37
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
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
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.
29
INVESTMENT ADVISORY BOARD
Meeting Date: May 11, 2011
TITLE:
Month End Cash Report, April 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.
r
Bill Lockyer, State Treasurer
Inside the State Treasurer's Office
Local Agency Investment Fund (LAIF)
PMIA Performance Report
6aW
-billy j
't�
�Ubld__:_
qj*t`0,.,
aeWFY t(;
Average
�Matority
E;j!64iiys)
4/14/2011
0.46
0.46
199
4/15/2011
0.45
0.46
197
4/16/2011
0.45
0.46
197
4/17/2011
0.45
0.46
197
4/18/2011
0.451
0.46
1951
4/19/2011
0.451
0.46
1951
4/20/2011
0.441
0.50
1901
4/21/2011
0.431
0.52
193
4/22/2011
0.43
0.52
196
4/23/2011
0.43
0.51
196
4/24/2011
0.43
0.51
iq�
4/25/2011
0.43
0.51
194
4/26/2011
1
0.43
f�C.43
0.50
194
4/27/2011
0,56,
18
*Daily yield does not reflect capital gains or losses
0___
LAIF Performance Report
Quarter ending 03/31/2011
Apportionment Rate:
Earnings Ratio:
Fair Value Factor:
Daily:
Quarter To Date:
Average Life:
0.51%
.00001390282087521
1.001262155
0.45%
0.52%
193
PMIA Average Monthly Effective Yields
MAR 2011 0.500%
FEB 2011 0.512%
JAN 2011 0.538%
Pooled Money Investment Account
Portfolio Composition
$68.413illion
03/31/11
Loans
Corporate Bonds 8.75%
Commercial Pap
9.70%
Time Deposits
5.56%
CDs/BNs
10.72%
Agencies
16.23% Mortgages
n 7,10/
Treasuries
48.30%
3
1-,,nCCV11t 13111 1ALIQL1011 NCSUILS Fage I ot I
TreasuryDirect
I k,1111 I
I
A-11 11,11rt,
Vato & ,luft�
I Lar,,t Aul,tion
DaL, REEFA
3111 Ao�hEll RuSuILE
Recent
Bill Auction Results
a. .... in,
. ........
Dill..111
Ell ... IrIll",
I'l—
Te-,
Dun',
A..,, .
K.11 I
Kt,. $,pa
CUSIP
13 WEEK
05 05 2011
08 04 2011
E c50
0 051
99AS736l
q,21913a5
26 WEEK
E5 Us 2011
11 03 2011
0 100
0 102
99 �494,I4
9127953RO
4 WEEK
04 28 2011
Us 26 2E.1
E E30
0 030
99 997667
IIZ795259
In WEEK
EI 2. Ir, 1
01 28 201,
1 U65
U Is,
11 UE35111
lil2795�61
26 WEEK
01 28 2011
10 27 2011
0 L15
. 117
99 941861
91279�JQ2
WEEK
04 21-2sil
05 19 2011
0 030
s.UU
99 U97661
9127952RI
13 WEEK
E4 11 UU11
U7 Il .11
U so
0 06,
99.UE4833
914795,'Al
2E-WEEK
04 21 2011
10 20-2011
O'lia
U 112
99.94l339
912795ZKG
4 WICK
i1i 2.il
05 12 2OU
0.025
M25
99 998056
9127952Q3
13 WEEK
04 14 2011
Ul-14 2011
1 OSCI
0 eIl
99 967361
n12,952Z3
Us WEEK
04 h 20it
10 13 2run
0,110
E I "
99 9`14389
91219511'4
4 WEEK
Ull E7 2011
05 05 201t
0 051,
0 OSI
99 99EIII
912795VLU
13 WEEK
DA-07 2011
07 07 201Y
0 USE
1) Osl
99 '187�61
9127952XU
26 WEEK
04 J� 2011
10 06 20"
0 130
1 132
99 i13421b
u279b3pl�
51 WEEK
04 07 2011
04 05 2012
0 ISE
0 285
99 1889
91279l33II2
4 WEEK
r3 31 201,
04 28 2011
0 115
0,0,D,
U9 "1
912)952NO
is WEEK
03 31-2011
06 3D 2011
0 WE
0.102
91
�1?195X22
26 WFtK
03 31 2011
En-29 2011
0 110
0 173
99M4051
9127q530
�_,,EFK
113 24-2011
�Uli
U .15
0.011,
11,"41E7
9117911�1
16 AY
03 24 7011
05 tq-2DII
UX55
0,051,
99,91114,14
1127952Rl
13-WFFK
U3_Zl_?OnI
06 23 ?Oil
OX95
0 097
11,975986
)127952WO
26-VVFFK
03-21-20ul
W 22-2011
0_50
0 153
99 �NI�7
9177952F7
,_wFEK
03 12 2011
01
uE.
0 0111
99 995333
912795�1 �
13-WEEK
03-17 2011
06-16-2011
0 090
0 092
99 9772l,i)
9127952v2
26 WEEK
03-17-2011
09-15-2011
0 135
0 137
99 931750
9127953KS
� WEEK
03 10 2011
04 07-2011
0 070
0 071
99 914556
91M!,Iini)
13 WEEK
E3-10-2011
06 09 2011
0,10
U 112
99,97ZI9�
91279!521JI
2G-111EK
O-U-2ril
09 08 2011
0,155
0 ISE
99 9ZI639
9N.795338
52 WEEK
03-10 2011
03-08-2012
0.1160
0,265
'EMI/111
91�7953G4
� WEEK
03 03 20:ll
03-31-2.11
0 135
99.989500
91271152Y9
49 DAY
03 03-2011
O� 21 2011
0 125
U 127
99 98218b
9127952.2
13-.LEK
03 US 2011
06 02-2011
0 145
0 141
99 96334/
I1279SW64
1E WEEK
.3 03-2011
09 01 2011
0 170
. 171
99 9l4a5b
912,9SI16
19 DAY
02 25-2011
04 19 2011
0.125
0 127
99 982986
912,996cg
1 WEEK
02 24 2011
01 24-2011
0,12U
0 122
99 990661
9121952u3
13 WEEK
02 24 2011
05 26-2011
a 1�0
U 112
'1') 972l94
9121q52S9
26-WffK
02-24-20LI
Us 25 Z011
0 155
0,15,
99 97t639
912/`I52AB
4-WtEK
0?-17-2011
0 P 2011
0 M
O'l.,
qq 992722
9 1 ? /9S205
13 WEEK
02-17 2011
05-19 20�11
0 130
0 1 � 2
91.96)139
907952RI
UK WEEK
E2 17 1011
Us 18 2.11
0 165
0 16,
`iI17U1II1
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1 1,11.11 rf Iff at i), i t I L. " i, G " Ell" ric, 1 rl �, ; I, I "U I d , �, I ., I � l, I "'Ti" & I , , � j I.,
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4
http://www.treasurydirect.gov/RI/OFBills 5/2/2011
Recent Note, Bond, and I IPS Auction Results
Page I of I
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Orr), , 1,5Ht Argol I Ar,mILUIIQA1�1i1' IEY& Rr'ij1I1 � L rt'Tt Allir ID,(, , M'Li , N," N'T"o "Id III's ',,-t H, kil '11�
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Be—",
Term
T'�.
1"ire
Maii
lm—�I
0,,, 1 it
Erna
cost,
Palo
Date
Rare I
" � 00
2 YEAR
NOTE
05 07 7011
04-30-2013
EA2.5
0�673
99,1050,11
912828QF3
5 YEAR
NOTE
05 07 2011
04-30-2016
2,000
2 � J 2�
99AIS2111
9 1 28?8"Fo
7 YEAR
NOTE
05 02 2011
04-30-2018
2,625
2 717
go isR900
ITIL2821i
5 YEAR
TIES
04 29 2011
04-15-2016
0,125
0,180
101,754296
ql28?8QD5
3 YEAR
NOTE
04 15 2011
04 15-2014
1 2.
1 280
99.ri
912828QC7
9 YEAR
10 MONTH
NOTE
04 ILE 2011
02-15-2021
3,625
3 494
101 075534
912.2.lxz
29 YEAR
10 MONTH
BOND
04 15 2011
02 15 2041
4 750
4 531
103.552179
'12T'YQg'
2 YEAR
NOTE
UT 31 2011
03-31-2013
0,75U
0 189
LE) 9221EN
91282NL7
5 YEAR
NOTE
U� 31 2011
03 31 2016
2 250
2 ZEE
INN12'11�
g'282HQA1
/-YEAR
NOTE
03-31 2011
03-31-2018
2.875
2 695
99,87409�
912baQ09
9-YLAR
TO MONTH
ThY5
CO-EI 2011
01-15-202T
I.IZN
0 920
102s8etm
912.28,T)
3 YEAR
NOTE
03-15-2011
03 15 2014
1,250
1 29.
99R59215
912828PZ/
9-YEaR
11 PONO
?AD I E
03-15 2011
02-15-20,?1
l'625
3 499
101 04450S
912',128PXZ
19 YEAR
11 MONTH
BOND
To I� 2011
02 15-204T
1050
4 569
102,92940D
01g8liON1
2 YEAR
HOT F
02 28 2011
02 28 grits
0 625
T 115
19,162218
'l:,AOROiE4
5 YEAR
NOTE
02 28-2011
07 29 '016
2T25
2 lor
re 6N3145
'ImAQT2
I YEAR
NOTE
02 28 2021
02-2B-L018
2�150
2 854
99,344321
11�'O�110
.311-YEak
TIPS
02 28 ?011
01 15 2B41
2.125
2 ON.
Is 659sg�
or .... OLT,
3 YEAR
NOTE
TO 15-2011
02 15 201,
I"In
I 3�q
go 70,887
109?8QHfi
10 YEAR
P40TF
01 15 2011
07 15 2021
1 62S
3 665
90 667623
`O?S�Epsl
1. YEAR
BOND
9? 15 2011
02 15 g041
4 750
1 7511
ILI 000000
01281TION1
2 YEAR
NOTE
01 31 2DII
01 31 2013
0 625
0 �50
1INertom
91PAMIR5
5 YEAR
NOTE
01-31-2011
or 31 zoig
? 000
2 041
9) 80CIO52
9V82i'l
7-YEAR
P40TE
01 31 2011
01 El 2018
2�625
2 7g4
99,24679Z
O282gErT1
10 YEAR
Two,
.1 ol-1,11
or "1 202,
� 12B
1 17H
99 1199898
O2828PP9
3 YEAR
P40TE
01 18 2011
01 15 2014
1 000
1 027
99.9206LE
g12.1.1Q1
11
10 MONTH
NOTE
01-19 2011
11 IS 2020
2 625
3 368
93Ai
912628PICY
29 YEAR
10 MOILTH
BOND
01-18-2011
11 lb 2040
4,25g
4 S15
95 669689
91?1310QL5
2-yr,,N
NOTE
12 31-2010
12-31-2012
O�625
0 74.
99.112112
91181811114
5-YEAN
NOTE
12 31-2010
12-31-2015
2T25
2 149
'lgA86YE7
912828POL,
7 YEAR
NOTE
12 31-2010
12 31 2017
Z 750
2 830
99 T9�101
91281IND4
3-YEAR
NOTE
12 15-2010
12 15 2013
IT YET)
0 862
og,669011
91202,11L8
9 YEAR
11-MOPJTH
NOTE
12 15 2010
It Is U0
2 625
3 340
s4."2822
912826,LD
29-YEAR
II-MOPTH
BOND
12 15 LTJO
I I -E-2040
4 250
4 416
97�10T24
912810QL5
2 YEAR
NOTE
11 30 2olo
11-30-2012
0 500
0 570
99s60259
912878PV6
5 YEAR
NOTE
11 30 2010
1 375
Tell
99 826192
9jL2TRPj3
7 YEAR
NOTE
11-3o 1010
11-30-201/
2 250
g 253
99�980673
912828PKO
3-YEAR
NOTE
11-15 2010
11-15 7013
0 Soo
0 515
99YI/20
912.28pus
g-YEAR
8 MONTH
TIPS
11-15 2030
07 15 2020
1 250
0 Los
108 103581
912828NM8
10 YEAR
N07F
11 15 2010
11-is-2020
2 625
r6of,
19 9,3856
912828113
Denotes TIPS bond; all other TIPS without asterisks are riotes
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5
http://www.treasurydirect.gov/RI/OFNtebnd 5/2/2011
r": t-ommerctai raper Kates ano k-lutstanaing )urnmary
What's New What's Next Site Map - A-Z Index Careers Fists
rage i oi z
A .., New. Im.reen, thavid., laranni
a ad.-noa pa,werart e.-,h canstard., cvardrav pa,,aia, vula-u-,
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Home > Economic Reassert & Data > Statistics Releases and Histandal Data
Commercial Paper 0 1111IDDP Apint
Summary Rates Volume Statistics Outstanding Year-end Maturity Distribution About Announcements
Commercial Paper Rates and Outstanding Summary Carved from data supplied by The Depository Trust & Clearing Corporation
Dat a as of A pri 129. 2011 11oted Nlay 2, 2011
The commercial paper release will usually be posted daily at 9 45 a in However the Federal Resente Board makes no guarantee regarding the timing of the daily posting This policy is
subject to change at any time without notice
Rates
AA ardeficancral
par led 1-d.Y 7-d.y I - 5-d.y 30-d.y 60-d. I V 90-day
I 'A 0.� 0.13
r 0.14 _0.17_j 0.20
Apr. 26 0.08 0.091 0.12 0.14 0.113 0.19
P 25,
Apr. 27 0.07 0.13 1 OJ3 0.11 0.16 i 0.23
Apr. 28 0.06 0.08 1 0.13 1 0.12 0.16
Apr. 29 0.06 0.09 0.09 0 . 11 0.12 ma.
A2JP2 nonfinancial
1-day
7-day
15-day
30-day l Go -day
90-day
0.29
0.33
0.35
0,36
0.42
0.47
0.29
0.36 ,
0.33 ,
0.37
0.41
m.a.
0.29
0.36
0.32
0.33
0,39
0.40
0.29
0.33
0.29
0.34
0.42
n.a.
0.30
0.35
0.27
0.34
0.36
n.a.
Note mat indicates that trade data was insufficient to support calculation of the particular rate
'I
AA financial
AA assat-backund
Period -
1-day
-
7-day
- -
15-day
30-day
I - �
60-day 90-day
I
1-day
- -
7-day
- I
15-d.y 30-d.y 60-day 90-day
L Apr. 25
0.08
0.11
0.08
0.13
0.13 0.21
0.17
0.26
0.20 0.21
0.28
0.26
Apr. 26
0.08
0.071
0.10
0.14
0.15 0.22
0 17
0.25
0.22 0.23
0.23
G.26
Apr. 27
0.08
0.07 1
0.10
0.12
0.17 0.19
0.16
0.32
0.21 0.22
0.24
0.27
Apr. 28
0.08
0.071
0.08
0.12
0.16 0.17
0 16
0.33
0.34 0.24
0.25
0.26
Apr. 29 1
L -
0.07
0.07 i
0.08
0.09
0.18 0.22
0.16
D.21
0 21 0.23
0.24
0.2o
Note n a indicates
that trade data was insufficient
to support
calculadon of the particular rate,
Outstanding Levels
Seasonally adjusted
Billions efUlars
I Nonfinancial Firramrsi Asset -
Period Total Other
Total Domestic Foreign Total Domestic Foreign backed
Monthly -end levels
2010-Dec. 1,035.9 133.2 1000 33.2 524.0 307.8 216.2 378.7 .0
2011-3an. 978.9 131.5 92.3 39.2 500.6 309.2 191.4 346.8 1 .1
Feb. 1,030.8 138.0 98.6 39.4 527.7 313.3 214.4 364.9 .2
Mar. 1,075.1 155.9 1079 48.0 547.5 320.3 227.2 371.3 .4
1,166.0 165.5 120.3 45.2 617.0 381.5 235.5 382.4 1.1
Apr.
i Weekly (Wednesday) levels
6
http://www.federalreserve.gov/Releases/CP/ 5/2/2011
v t-olatmerciai raper Kates ana uluistanaing jummary
Fage 2 ot 2
Mar.
30
1,081.4
166.4
119.9
46.4
559.9
336.8
223.1
354.8 i
.4
Apr.
6
1,093.2
167.7
118.7
49.0
574.6
345.0
229.6
350.5
.4
Apr.
13
1,099.2
167,2
121 4
45.8
579.2
349.3
229.9
352.2
.6
Apr.
20
110 98.4
165.9
119.5
46.4
574.4
345.4
229.0
357.3
.7
Apr.
27
1,105.7
168.5
122.2
46.3
576.9
349.9
227.1
359.3
1.0
Not seasonally adjusted
Bdin,ra fd.11.
N.rfi.su,ial Financial A..t-
Period Total , - I _ -- ; Othes
Total Dardestit Foreign Total Domestic Foreign baked
Monthly -end levels
2010-Dec. 1,057.5 119.9 82.9 37.0 555.6 342.8 212.7 382.0 .0
2011-Jan. 1,078.0 143.7 i 103.4 40.3 549.1 336.1 213.0 385.0 .2
Feb. 1,122.9 156.8 115.9 41.0 572.0 345.6 226.3 393.7 .4
Mar. 1,131.2 159 1 110.5 48.7 578.7 356.7 1 222.0 393.0 4
Apr. 1,161.1 177.4 128.4 49.0 595.3 369.5 225.7 387.4 1.1
Weekly (Wednesday) levels
Me,. 30 1,133.8 161.8 114.2 47.6 582.3 359.5 222.9 389.3 .4
Apr. 6 1,142.4 171.8 122.3 49.4 S81.5 357.9 223.7 388.8 .4
Apr. 13 1,149.1 174.6 1279 46.7 590.2 368.3 221.9 383.5 8
Apr. 20 1,137.2 1753 126.4 48.9 577.5 3594 218.2 383.3 1.0
Apr. 27 1,150.7 177.9 129.2 48.7 5B9,3 370.5 218a 3824 1.1
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7
http://www.federalreserve.gov/Releases/CP/ 5/2/2011
F�. 171. 1 J 111XIC:51, Isdi I I I Y, ZV I I
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rage I or j
Ammar i M.meamr, El-kas, Payment Ife'"Oni Cr,r�useir cr,"ne-lo, Riamwrtin,
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a Perini !hrinii A ri.i. Int-reati- on,"I.P.-it F-ri
Ferns > Eppromic Reseamh & Data > Stafisbral Releases arnef Histaneal Data
Selected Interest Rates (Daily) - H. 15
Curr-ent-Rdlease
Release Dates
Daily Update
Hiski Data
About
Announcements
Daily Update
Release Dole: April 29,2011
0 illill QPrant
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 wiiJ be posted
on Tuesday after the holiday and the daily update will not be posted on that Tuesday
April 29, 2011
Selected Interest Rates
Yields inipercentiserionnum
2011
2011
2011
2011
Instrument.
Ad,
Apr
A,,
Apr
25
26
27
28
Federal funds (effective)
0.10
0 09
0.09
0.09
Commercial Pape, 3
Nonfinancial
1-mon th
0.14
0.14
0.11
0 12 i
2-nacunth
0.17
0.18
0.16
0,16
3-..nth
0,20
0.19
0.23
d.a. i
Financial
1-month
0.13
0.14
0.12
0.12
2-morrith
0.13
0.15
0.17
0.16
3--m-corth
0.21
0.22
0.19
0.17
CDs (secondary market) a
1-month
0.18
0.18
0.18
0.18
3-rnonth
0 22
0.22
0.22
0.23
6-month
0.32
0.32
0.32
0.31
Eurodollar deposits (London)
1-nnonth
0.25
0.25
0.25
0.25
3-manth
0.38
0.38
0.38
0.33
I 6-month
-T-
1 0.54
0.54
0.54
0 54
Bank prime loan
3.25
3.25
3.25
3.25
Discount window primary credit 2 10
l 0,75
0.75
0.75
0,75
- -- ------ ---
U.S. government securities
Treasury bills (secondary market)
4-vack
3-month
6-morth
1-year
Treasury constant maturities
Nominal
1-month
0.03 0.02 0.03 0.02
0.07 0.07 0.06 0.04
0.12 0.11 0.11 0.10
0.21 0.20 0.20 ! 0 21
1;
1 0.03
0.02
0.03
0.02
8
http://www.federalreserve.gov/Releases/H15/update/ 5/2/2011
I i�. ii. I � III LCICzL I I �7, �V I I
rage / 01 -1
3-floonth
0 07
0.07
0.06
0.04
6-month
0.12
0.11
0.11
0.10
1-year
0.23
0.22
0.22
0.23
2-year
0.67
0 65
0.65
0.62
3-year
1.13
1.09
1.09
1.03 1
5-year
2.10
2.05
2.06
2.00
7-year
2 76
2.71
2.74
2.69
10-year
3.39
3.34
3.39
3.34
20-yaar
4.22
4.16
4.21
4.18
30-yethr
4.46
4.39
445
4,42
Inflation indexed 12
s-yea,
-0.20
0.27
-0.31
7-year
0.46
0.43
0.39
0.27
lo-vear
0.79
0.76
0.81
0.78
20-year
1.41
1 40
1.47
1.46
30-year
1.75
1 74
1 79
1,76
Inflation -indexed long-terno average
13 1 51
1.49
1.54
1 50
14
Interest rate SWaps
1,ear
0.40
0.40
0.4-0
0.38
2-year
0.83
0.82
0.84
0.77
3-yea,
1.36
1.34
1.38
1.27
4-year
1.85
1.113
1,85
1.74
5-year
2.28
2.25
2.27
2,15
7-year
2.90
2.87
2.89
280
10-year
3.45
3.42
3.43
3.37
30-year
4.24
4.20
4.20
4.18
Corporate bonds
Moody's seasoned
Asia is
5.16
5 10
5,17 1
5.11
gas
5.97
5.91
5.96
5.93
State & local bonds
4.86 1
Conventional mortgages 17
4.78
n.a. Not avaitable.
Footnotes
I The daily effective federal funds rate Is a weighted average of rates on bickered trades
2 Weekly figures are averages of 7 calendar days ending on Wednesday of the current week, monthly figures mi each
calendar day in the month
3 Annualized using a 360-uay year or bank interest.
4. On a discount basis.
6. Interest rates interpolated from data on certain commercial paper trades settled by The Depository Trust Company Th. 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 Boat s Commercial Paper Web page
6, Financial paper that is insured by the FDIC a Temporary Liquidity Guarantee Program is not excluded from relevant indexes nor
is any firancral or nonfinancial commercal paper that may be directly or indirectly affected by one or more of the Federal Reserve .
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 am not comparable for some purposes to rates published prior to that period
7 An average of dealer bid rates on nationally traded cartficates of deposit.
8 Source Bloomberg and CTRB ICAP Fixed I hoome & Money Market Products
9
http://www.federalreserve.gov/Releases/H I 5/update/ 5/2/2011
I,": miD Keiease--�Iejecieu imerest I-,ates--iAprn Z�', Z.0 I I
relgic; J vi J
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 Pope short-term business loans
10 The rate charged for discounts made and advances extended under the Federal Reserves 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 funher information, see ww fsofiralmse,vi, g�,ib�.,dd�,,,/p.�,/b�,�,g/200212n,�2103121d�fa�lt h�uu Th.
rate reported is that for the Federal Reserve Bank of New York historical series for me rate on adjustment credit as well as the rate
on pirmary credit are available at www fei maerve govireleades/hI51dam him
11. Yields on actively traded nominflation-indexed issues adjusted to constant maturities The 30-year Treasury constant matunty
series was discontinued on February 18, 2002 and reintroduced on February 9 2003. From February 18 2002 to February 9,
2003, the U S Treasury published a factor for adjusting the daily nominal 20 year constant matunty in order to estimate a 30-year
nominal rate. The historical adjustment factor can be found at w�vwtrdasury gov/I coame-centarldem-chart conter/interest rates/
Source. U S Treasury
12, Yields on Treasury inflation protected securities (TI PS) adjusted to constant matunties Source U S. Treasury Additional
information on both nominal and inflation -indexed yulds may be found at W�Amm5Uhj,g0V1m5hjmo c0nm, r1dam cham
centarlinterest-hards)
13, Based on the unweighted average bid yields for all TI PS with remaining tens to maturity of more than 10 years
14. Interniffional Swaps and Derivatives Association (I SDAS) mid-matet 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 am. Eastern time by Gordon Intericaproal pic and
published on Reuters Page ISDAFIX01 I SDAFIX is a registered service mat of ISDA Source, Reuters Limited
15. Moody a Aaa rates through Decembers, 2001 am averages of Aaa utility and Abe Industrial bond rates As of December 7,
2001 mesa rates am averages of Aim industrial bonds only
16 Bord Buyer Index, general obligation, 20 years to maturity, mixed quality, Thursday quotations
17. Contract interest rates on commitments for fixed-rate first mortgages. Source Pumary M offirage M arict Survei data provided
by Freddie Mac
Note Weekly and monthly figures on this release, as well as annual figures available on the Board's historical 1-1,15 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 (w,,v federalroperve govi) For information about individual copies or subscriptions contact
Publications services at the Federal Ropenhe Board (phone 202-452-3244. fax 202-728 5885T
Description of the Treasury Nominal and Inflation -indexed Constant Maturity Series
Yields on Treasury nominal securities at "constant maturity' am interpolated by the US, Treasury from the daily yield purve for norrunflation-indlexed 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 metal
yields am calculated from composites of quotations obtained by the Federal Reserm Bank of New York The constant maturity yield values are read from the yield cumm 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 mai are interpolated from the daily yield curve for Treasury inflation buctected
securities in the o,mr-the-counter market The inflation-ridexed constant maturity yields are mad from this yield curve at fixed maturities currently 5 7. 10, and 20 years
Home I Economic Research & Data
Accessibility Contict us Disclaimer 0 Linking Policy FOIA PDF Reactor
10
http://www.federalreserve.gov/Releases/Hl 5/update/ 5/2/2011
City of I-S, Quirtar
Cash Flova,
Budget to Actual
March 31 2011
Cash Basis
Budget
Actual
Accrual
Adjusted Total
Variance
Account
3/11
3111
Adjustment
3111
Over(Under)
Notes
Property TaW Tax Increment
-
Transient Occupancy Tax
486740
464,817
464,817
(21,923)
Sales Tax
514699
480215
480,215
(34,484)
Silvel Golf
546191
662405
662405
116,214
Higher domme than anticipated
Library
1,294424
1,095 G85
1,095,985
(198,439)
Received Fire Credit far $2 9rd far
reimbursement of EOC in the General
Offierrevenues,
1,763,959
7609,190
7,609 190
518i
FCrd,t,C,,fe,,,d in $2 9m 1. Ovid C,,dr
,
Revenues
4,606,014
10,312,612
10,312,612
5,706,598
Expenditures
Salaries & Fringe Benefits
614,295
825,566
825,566
11.271
Other expenditures
2 908,010
1 4 3,516
1,483,516
(1,424,494�
Did out pay Police invoice far March
3 722,305
2 309,082
2,309,082
(1,413.223�
Subtotal
Redevelopment Agency
587,900
1,469.807
1.469,807
831.907
Disburses $1 2M to Card
Debt Serves (PrincipallffitereSt/Pass Through)
5636.489
5655844
5,655,844
19.355
6224,389
7.125.651
7,125,651
901.261
Subtotal
Capital Projects
3 162 980
3.162,980
3,162.980
1
Total Expenditures
13,109,674
12,597,713
12.697.713
1511,961)1
Net RevenueslExpenditures
(2,285,101)1
(2,285,101)1
5.1favow
NOTE 1
Expenditures are budgeted at 8 34% per month
Difference between actual and budget
Undersipard)
DEPARTMENT
Overspent Notes
GENERAL GOVERNMENT
(154 569)
L,,SlSt,ve moredi S42CDever0preent SVCS underbudget $72k: Management Svcs andfigraudget 3401,
CITY CLERK
(2 663)
COMMUNITY SERVICES
444 870
Lobai ex,,fnfes S4551, to County ofRiveraide 70-1213111C
FINANCE
(18,582)
BUILDING & SAFETY
(61,066)
PUBLIC SAFETY
(1 045.109)
Did not pay Police invoice for March
PLANNING
25,069
PUBLIC WORKS
1176,960)
Stairs underbudget $95, Landscaping uncepudget $571,
(989009)
SUBTOTAL . GENERAL FUND
Library
-
Guerra.
Federal Assistance
JAG Grant
Blear (Cops) Revenue
CMAQ
Lighting & Landscaping
RCTC
Development Agreement
-
AB 939
(9974)
Quimby
-
Infrastructure
Phoenician 18
South Coast Air Quality
(4.079)
Transportation
Parks & Recreation
Civic Center
Library Development
Community Center
Street Facility
Park Facility
Fire Protection
Arta In Public Places
(13,159)
Interest Allocation
Equipment Replacement
Information Technology
Park Maintenance Facility
(22,652)
(16,853)
12 125
SilverRock Golf
451
S,Ive,R.ck Reserve
-
LO Public Safety Officer
Housing Authority
Finance Authority
(167)
(90,464)
(32,
Capital Improvement
Total
I.. IF,
11
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
May 11, 2011
Pooled Money Investment Board Report
for February 2011
BACKGROUND:
Correspondence & Written
Material Item B
A partial portion of the Pooled Money Investment Board Report for February 2011
is included in the agenda packet. This report is available on-line at
www.treasurer.ca.gov.
RECOMMENDATION:
Receive & File
John M. Falconer, Finance Director
POOLED MONEY INVESTMENT ACCOUNT
SUMMARY OF INVESTMENT DATA
A COMPARISON OF FEBRUARY 2011 WITH FEBRUARY 2010
(DOLLARS IN THOUSANDS)
LFEBRUA [FEBRUA
Average Daily Portfolio
$ 68,108,271 $
67,029,432 $
+1,078,839
Accrued Earnings
$ 26,761 $
29,661 $
-2,900
Effective Yield
0.512%
0.577%
-0.065%
Average Life -Month End (in Days)
177
200
-23
Total Security Transactions
Amount
$
18,113,820
$
18,576,947
$
-463,127
Number
367
376
-9
Total Time Deposit Transactions
Amount
$
1,514,480
$
2,038,140
$
-523,660
Number
91
99
-8
Average Workday Investment Activity
$
1,033,068
$
1,085,004
$
-51,936
Prescribed Demand Account Balances
For Services
$
1,664,611
$
1,141,554
$
+513,057
I
BILL LOCKYER
TREASURER
STATE OF CALIFORNIA
INVESTMENT DIVISION SELECTED INVESTMENT DATA
ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO
(000 OMITTED)
FEBRUARY 28, 2011
DIFFERENCE IN
PERCENT OF
TYPE OF SECURITY
PERCENT OF
PORTFOLIO FROM
Government
AMOUN
PORTFOLIO
PRIOR MONTH
Bills
Bonds
$ 24,925,396
36.06
-1.30
Notes
0
0.00
Strips
6,038,517
8.73
+0.69
0
0.00
Total Government
$ 30,963,913
44.79
-0.61
Federal Agency Debentures
$ 2,111,361
3.06
+0.83
Certificates of Deposit
7,350,001
10.64
-0.81
Bank Notes
1,050,000
1.52
+0.05
Bankers' Acceptances
0
0.00
0
Repurchases
0
0.00
0
Federal Agency Discount Notes
8,676,516
12.55
+0.39
Time Deposits
3,803,640
5.50
+0.19
GNMAs
55
0.00
0
Commercial Paper
8,235,115
11.91
+0.05
FHLMC/Remics
521,341
0.75
0
Corporate Bonds
0
0.00
0
AB 55 Loans
360,155
0.52
+0.03
GF Loans
5,757,900
8.33
-0.13
NOWAccounts
0
0.00
0
Other
300,000
0.43
+0.01
Reversed Repurchases
0
0.00
0
Total (All Types)
$ 69,129,997
100.00
INVESTMENT ACTIVITY
FEBRUARY 2011
JANUARY 2011
NUMBER
AMOUNT
NUMBER
AMOUNT
Pooled Money
367
$ 18,113,820
435 $
21,577,155
Other
2
2,980
3 $
286,336
Time Deposits
91
514,480
141 $
3,417,800
Totals
460
$ 19,631,280
579 $
25,281,291
PMIA Monthly Average Effective Yield
0.512
0.538
Year to Date Yield Last Day of Month
0.499
0.497
2
Pooled Money Investment Account
Portfolio Composition
$69.1 Billion
02/28/11
Loans
Corporate Bonds 8.85%
0.00%
Commercial Par
11.91%
Time Deposits
5.50%
CDs/BNs
12.16%
Agencies Mortgages
16.04% 0.75%
Treasuries
44.79%
INVESTMENT ADVISORY BOARD
Meeting Date:
TITLE:
May 11, 2011
Correspondence & Written
Material Item C
Update on California Municipal Treasurers Association Conference (CMTA)
BACKGROUND:
The Treasurer attended the annual CMTA Conference in San Diego in April. In an
effort to reduce costs, conference session handouts are available through the
CMTA's website at www.cmta.org.
RECOMMENDATION:
Staff will provide verbal update.
, t +' "—
M. Falconek Finance Director