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il Staff Report
DATE: February 16, 2011 CONSENT CALENDAR
SUBJECT: TREASURER'S INVESTMENT REPORT AS OF
DECEMBER 31, 2010
FROM: Geoffrey S. Kiehl, Director of Finance and Treasurer
BY: Department of Finance and Treasury
SUMMARY
Attached is the Treasurer's Investment Report as of December 31, 2010. The
report includes the face value and coupon rate (if applicable) of the investments
and the source for the market value estimate. The City's total invested cash is
$75,793,867 plus $19,067,279 in bond issue capital projects, reserve and debt
service funds. The market value of the invested cash is $75,612,560.
RECOMMENDATION:
Receive and File Treasurer's Investment Report as of December 31, 2010.
STAFF ANALYSIS:
The attached report includes the face value and coupon rate (if applicable) of the
investments and the source for the market value estimate. Also included is
information on the investments of bond issue reserve, debt service and related
funds.
The investments, in type, maturity and as a percentage of the total portfolio, are
in compliance with the existing City Council-approved investment policy with one
exception: the FICO notes ($500,000, 4/16/18, 9.8%) exceed the 5 year
limitation on maturities (Detail of Investments, Long Term Investments, U.S.
Govt. Agency Securities). The investment in question was purchased prior to the
adoption of the 5-year limitation. Since it appears to represent no additional risk
either because of credit-worthiness or liquidity, earlier councils decided to allow it
to be retained in the investment pool because the yield is higher than attainable
ITEM NO.--n ►� ---
City Council Staff Report
February 16, 2011 -- Page 2
Treasurer's Investment Report as of December 31, 2010
under current market conditions. We recommend that this exception to the
policy be continued.
The weighted average maturity (WAM) of the portfolio is 728 days. The
maximum WAM allowed by the Investment Policy is 1095 days. The current
portfolio and expected revenue cash flow will be sufficient to meet budgeted
expenditure requirements for the next six months and the foreseeable future
thereafter.
FISCAL IMPACT:
None
- .�-✓ /-1
Geoffrey S. Kiehl, Director of Finance and Treasurer
Attachments: Treasurer's Investment Report
trcasmp CITY OF PALM SPRINGS
1/31/2011 TREASURER'S MONTHLY REPORT
SUMMARY OF INVESTMENTS
DECEMBER 31, 2010
Chi Call 20sits Adjusted Basis Category Total Peroentage
Checking Account $ 1,349,775
State Pool 37,700,000 $ 39,048,775 51.52%
Short Term Investments
(1 year or less
Corporate Notes 986,120
Mortgage Pass-Thrus 262,878 1,248,998 1.65%
Medium Term Investments
(1 year to 3 ears
U.S.Gov't Agencies 4,000,000 4,000,000 5.28%
Long Term Investments
3 years to 5 ears
U.S.Gov't Agencies 31,496,094 31,496,094 41,55%
$ 75,793,867 100,000/0
*Some investments made prior to the implementation of the
current Investment Policy exceed the 5 year limit.
3
treasnep TREASURER'S MONTHLY REPORT
1/312011 DETAIL OF INVESTMENTS
DECEMBER 31,2010
Coupon Yield Adjusted (memo only) Prior Qtr.
Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
On Call Deposits
Checking-Sank ofAmenca S NIA unable AAA open 0.15% S 1,348,775 S 1,349,775 $ 1,045,640
Local Agency Invest Fund(L.A1F)" 37,700,000 variable NIA open 0.46% 37,700,000 37,772,190 LAIF 52,285,805
39,048,775
Short Term Investments
1 year or less
Corporate Notes
Wells Fargo&Company 800,000 3.98% AA- 1029/10 4200/. 0 0 Bank of NY Mellon 901,968
SBC Communications,Inc. 1,000,000 5.30% A 11!151,10 5.170/. 0 0 Bank of NY Mellon 1,005,260
Goldman Sachs Group,Inc. 1,000,000 5.00%. A 01/15/11 5.37"/ 996,120 1,001,094 Bank ofNY Mellon 1,011,80o
986,120
Mortgage Pass-Thras
Federal National Mortgage Association 500,0DO 4.00°/ NIA I0101110 4.95% 0 0 Bank ofNY Mellon 2,747
Federal Home Loan Bank 775,000 4.75% NIA 10/25/10 4.88% 0 0 Bank of NY Mellon 317,615
Federal Home Loan Mortgage Corporation 1,015,552 4.50Y NIA 02/01/11 5.24% 119,573 131,975 Bank of NY Mellon 172,920
Federal Home Loan Mortgage Corporation 695.000 4.00'/o NIA 04/01/11 5.22'/. 110,135 124,912 Bank of NY Mellon 142,616
Federal Home Loan Mortgage Corporation 200,000 4.50% NIA 05101`11 5.371/. 33,171 36,085 Bank of NY Mellon 42,123
262,878
Mediurn Term Investments
1 year to 3
U.S.Gov't Agency Securities
Federal Howe Loan Bank 2,OW,000 1.753E NIA I=9112 1.75% 0 0 Bank ofNY Mellon 2,001,875
Federal Home Loan Mortgage Corporation 1,000,000 2.500/. NIA 1228112 2.500% 1,000,000 1,010,230 Bank ofNY Mellon 1,015,070
Federal Farm Credit Bank 2,000,OW 2.00% N/A 01/14/13 2.00°/a 2,000,000 2,00Q8W Bank ofNY Mellon 2,007,500
Federal Home Loan Mortgage Corporation 1,000,000 1.10% N/A 0122I13 1.101/a 1,000,000 1,002,940 Bank ofNY Mellon 1,004,070
Federal Home Loan Bank 2,000,000 2.08% NIA 1223A 3 2.08% 0 0 Bank ofNY Mellon 2,008,125
4,000,000
treasrep TREASURER'S MONTHLY REPORT
1/31n011 DETAIL OF INVESTMENTS
DECEMBER 31,2010
Coupon Yield Adjusted (mono only) Prior Qtr.
Par Value Rate R-18 Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
Long Tam Imxstment
3 yearstc,5years)
U-S.Gov't Agency Securities
Federal Home Loan Mortgage Corporation 1,000,000 1.63% NIA OU21/14 1.63% 1,000,000 1,005,220 Bank of NY Mellon 1,008,580
Federal National Mortgage Association 1,000,000 1.60%. NIA 01/29114 1.601% 1,000,000 1,004,860 Bank of NY Mellon 1,008,438
Federal Home Loan Bank 2,000,000 2.35%. NIA 03117/14 2.35% 2,000,000 2,007,960 Bank of NY Mellon 2,017,500
Federal Farm Credit Bank 1,000,OOU 1.771% NIA 07/09/14 1.77% 1,000,000 1,002,080 Bank ofNY Mellon 1,007,500
Federal National Martgage Association 1,000,000 2.OW. NIA 07,22114 2.001. 0 0 Bank ofNY Mellon 1,000,938
Federal Home Loan Mortgage Corporation 1,000,000 3001% N/A 11./05/14 3.00% 0 0 Bank ofNY Mellon 1,002,570
Federal Farm Credit Bank 1,000,000 1.25% NIA 11/17/14 1.25% 1,000,000 989,340 Bank ofNY Mellon 0
Federal National Mortgage Association 1,000,000 2.05% NIA 01/13/15 2.05% I,OW Ot10 1,005,770 Bank ofNY Mellon 1,012,188
Federal Home Loan Mortgage Corporation 1,000,000 2.38% NIA 07/20/15 2.38% 1,000,000 1,000,890 Bank ofNY Mellon 1,005,200
Federal Home Loan Bank 1,000,000 235% NIA 07/21/15 2.35% 1,000,000 1,000,100 Bank ofNY Mellon 1,005,313
Federal National Mortgage Association 1,000,000 225% NIA 07I22115 2.3(ft 997,500 992,370 Bank ofNY Mellon 1,007,500
Federal Farm Credit Bank 1,OOQo00 1.88"/ NIA 08/17/15 1.88% 1,000,000 985,469 Bank ofNY Mellon 1,005,625
Federal Home Loan Mortgage Corporation 1,000,000 2.DO% N/A O8n3115 2.00% 1,000,000 985,810 Bank ofNY Mellon 1,003,750
Federal Farm Credit Bank 2,000,000 1.99% N/A 09130I15 1.99Y. 2,000,000 1,972,780 Bank ofNY Mellon 2,008,I25
Federal National Mortgage Association 2,OW,000 2.00%. N/A 09)30115 2.W1. 2,000,000 1,959,480 Bank ofNY Mellon 1,998,750
Federal Home Loan Bank 2,000,000 2.001A NIA 10105.15 2.00% 2,000,000 1,939,360 Bank of NY Mellon 0
Federal Farm Credit Bank 2,000,000 1.62% NIA 11116+7 5 1.62% 2,000,000 1,950,240 Bank of NY Mellon 0
Federal National Mortgage Association 1,000,000 1.5011. NIA 11123 15 1.50°/ 1,000,000 962,900 Bank of NY Mellon 0
Federal National Mortgage Association 2,Ooo,600 L"A NIA 11/23/15 1.501y. 2,000,000 1,930,313 Bank of NY Mellon 0
Federal National Mortgage Association 2,000,000 1.50%a NIA 11/23/15 1.501y. 2,000,000 1,930313 Bank of NY Mellon 0
Federal National Mortgage Association 2,000,000 1.45% NIA 11/30/13 1 A5%. 2,000,000 1,926,340 Bank ofNY Mellon 0
Federal Home Loan Mortgage Corporation 1,000,000 1.57% N/A 12/01/15 1.57% 1,000,000 998,460 Bank of Ny Mellon 0
Federal Home Loan Bank 1,000,000 1.75% NIA 12/03/15 1.75"/. 1,000,000 965,920 Bank ofNY Mellon 0
Federal Home Loan Bank 2,000,000 2.00%. NIA 12/03/15 2.00% 2,000,p00 1,960,939 Bank offY Mellon 0
Financing Corporation(FICU) 500,000 9.80% NIIA 04106/18 9.80°/ 498,594 716,569 Bank of America 750,734
31,496,094
Total Invested Cash S 75,7913,867 S 75,612,560 S 82,707,844
'Includes the following deposits of non-City fiords:
Principal Interest Total
SMG(Convention Center) 100,000 96,175 196,175
Palm Springs Historical Society 250,000 53,303 303,303
Li
TREASURER'S MONTHLY REPORT
treasrep MISCELLANEOUS AND TRUST ACCOUNTS
1/31/2011 DECEMBER 31, 2010
Yield Adjusted
Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total
Total Invested Cash $ 75,793,867 S 75,793,867
$ 75,793,967
Miscellaneous Accounts
Petty Cash 3,900 N/A N/A open none 3,900
Revolving Fund-Bank of America 20,000 N/A N/A open none 20,000
Trust&Agency-Bank of America 1,472,493 N/A N/A open none 1,472,493
Do"mpayment Assistance housing
Fund)-7P Morgan Chase 33,714 0.15% NiA open 0.15% 33,714
Workers Compensation-Bank of America 8,123 N/A NIA open none 8,123
General Liability-Bank of America 22,220 N/A NIA open none 22,220
1930's General Store Museum-Bank of America 4,972 N/A NiA open none 4,972
On-Line Credit Card Transportation Permits- 524 N/A N,:A open none 524 1,565,946
Bank of America
IDeposits.Held In Trust
Time Deposits
(FDIC Insured)
BBVA Compass(Coyote Springs Apt) 20,777 1.090/0 N/A 6/24/11 1.09% X777 20,777
Total Cash Deposited 5 77,380,590
treasrep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS
01/31/11 DECEMBER 31,2010
Coupon Yield Adjusted (memo only) prior Qtr.
Paz Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
1991,197r01104 Convention Center
lnvesco Government&Agency Private 6,420 variable AAA open 0.02% 6,420 6,420 Bank of NY Mellon 113,557
Federal Home Loan Morgtgage Corporation 5,465,000 4.13% NIA 9t27113 1.93% 5,867,948 5,922,038 Bank of NY Mellon 3,994,422
5,974,268
1991161 Series B-Housing
Invesco Government&Agency Private 24,624 variable AAA open 0.01% 24,624 24,624 Bank of NY Mellon 14,910
Federal Home Loam Bank 420,000 4.63% N.A 10/101I2 1.38% 433,705 450,013 Bank ANY Mellon 454,781
478,329
1994104 Series A&B
Invesco Government&Agency Private 32,362 variable AAA open 0.02% 32,362 32,362 Bank ofNY Mellon 32,360
Federal Home Loan Mortgage Corporation 965,000 4.13% N A 9t27113 1.93% 1,036,134 1,043,703 Bank ofNY Mellon 1,058,484
Federal Home Loan Mortgage Corporation 571,000 4.13% NIA 9.27113 1.93% 613,091 618,733 Bank ofNY Mellon 626,316
1,681,587
1998 Airport PFC
Invesco Government&Agency Private 601,014 variable AAA open 0.02°/a 601,014 601,014 Bank of NY Mellon 388,794
U.S.Treasury Note 918,000 138% N/A 3A5113 1.55% 913,374 931,412 BankofNYMellon 936,865
1,314,388
1998 Assessment District I55 A&B
Invesco Government&Agency Private 147,307 variable AAA open 0.02% 147,307 147,307 Bank of NY Mellon 147,300
147,307
2001 Assessment District 1571158
Invesco Government&Agency Private 176,396 variable AAA open 0.02°/a 176,396 176,396 Bank of NY Mellon 176,388
176,396
2002 Parking Structure
Cash 3 3 3 Bank ofNY Mellon 3
Invesco Government&Agency Private 15 variable AAA open 0.01% 15 15 Bank ofNY Mellon 3,680
18
treasrep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS
01/31/11 DECEMBER 31,2010
Coupon Yield Adjusted (memo only) Prior Qtr.
Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Valve
2004 Assessment District 161
Invesco Government&Agency Private 64,955 variable AAA open 0.02% 64,955 64,955 Bank of NY Mellon 62,623
Key Bank National Association,Oluo 108,000 4.30°/ NIA 12/20/12 1.S0'/. 113,105 115,451 Bank of NY Mellon 116,740
C1T Bank,Salt Lake City,Utah 205,000 3.05% NIA 1+28113 1.97% 211,607 214,381 Bank of NY.Mellon 216,273
391,667
2004 Assessment District 162
Invesco.Government&Agenc}Private 64,580 variable AAA open 0.01% 64,590 64,580 Bank of NY Mellon 64,577
Capital One Bank USA National Association 88,000 4.15% NIA 3/5'13 1.80% 93,846 94,168 Bank of NY.Mellon 95,301
158,426
2005 Assessment District 164
Invesco Government&Agency Private 94,049 variable AAA open 0.01% 94,049 94,049 Bank ofNY Mellon 92,916
Citizens Bank,Flint,Michigan 245,000 1.85% NIA 3/411 3 1.WA 245,347 245,000 Bank of NY.Mellon 245,000
Capital One Bank USA National Association 25,000 4.15% NIA 315113 1.90% 26,661 26,752 Bank of NY Mellon 27,074
366,057
2006 Airport PFC
Invesco Government&Agency Private 937112 variable AAA open 0.02% 937,212 937,212 Bank of NY.Mellon 547,243
U.S.Treasury Note 855,000 1381/6 N/A 3I15113 1.55% 950,692 967,492 BankofNYMellon 872,570
1,787.903
2007 Merged Project#1
Invesco Government&Agency Private 4,839,141 variable AAA open 0.02% 4.939,141 4,839,141 Bank ofNY Mellon 6,941,729
4,839,141
2007 Refundvig Lease Revenue Bonds
Invesco Government&Agency Private I variable AAA open 0.01% 1 1 Bank ofNY Mellon 378,950
1
2008 Airport PFC Refunding
Invesco Government&Agency Private 12,853 variable AAA open 0.01% 12,853 12,853 Bank ofNY Mellon 12,854
Federal Home Loan Mortgage Corporation 603,000 4.13% NA 9127/13 1.93% 647,450 653,429 Bank ofNY Mellon 661,416
660,303
Fends With Century Golf 991,488 991,488 991,438 Century Golf 1,355,563
991,488
Totals S 19,067,279 S 19,177,011 S 21,538,591
treasrep TREASURER'S MONTHLY REPORT
01/31/11 CALCULATION OF INVESTMENT LIMITATIONS
DECEMBER 31, 2010
Allowable Percentages
By Maturity: Minimum Maximum Current Mo.
1 day to 365 days $8,000,000 NIA $40,297,773
1 year to 3 years 0.00% 50.00% 5.28%
3 years to 5 years 0.00% 30.00% 40.90%
over 5 years NIA NIA 0.65%
By Type of Investment:
Bankers Acceptance - in total NIA 40.00% 0.00%
Bankers Acceptance - single bank NIA 20.00% 0.00%
Commercial Paper NIA 15.00% 0.00%
Certificates of Deposit NIA 30.00% 0.00%
Corporate Notes NIA 20.00% 1.30%
Money Market Mutual Funds NIA 10.00% 0.00%
Mortgage Pass Thrus N/A 10.00% 0.35%
U.S. Government Agencies NIA 50.00% 46.83%
U.S. Treasury Notes/Bonds NIA NIA 0.00%
.