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Home My WebLink About7/17/2002 - STAFF REPORTS (31) DATE: July 1, 2002 TO: City Council FROM: Director of Finance & Treasurer RE: Treasurer's Investment Report as of May 31, 2002 Attached is the Treasurer's Investment Report as of May 31, 2002. The 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 funds, and on loan repayment programs managed by a bank. 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, Mortgage Pass Thru's). 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 under current market conditions. We recommend that this exception to the policy be continued. State law requires this report to be submitted within 30 days of the end of the quarter. Because all of the City's bank accounts may not be completely reconciled, there may be minor adjustments to the cash on hand in the checking account and to the valuation of the bond issue's money market investments. All other amounts are actual. The weighted average maturity(WAM) of the portfolio is 364 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. Submitted by: 6'1 _/6V r�1 Thomas M. Kanarr Treasurer �7 DATE: ay.2-472GO - TO: City Council FROM: Director of Finance &Treasurer RE: Treasurer's Investment Report as of 30, 2002 /��,-S/� Attached is the Treasurer's Investment Report as of AIVH-ai, 2002. The 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 funds, and on loan repayment programs managed by a bank. 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, Mortgage Pass Thru's). 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 under current market conditions. We recommend that this exception to the policy be continued. State law requires this report to be submitted within 30 days of the end of the quarter. Because all of the City's bank accounts may not be completely reconciled, there may be minor adjustments to the cash on hand in the checking account and to the valuation of the bond issue's money market investments. All other amounts are actual. The weighted average maturity (WAM) of the portfolio is`354-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. Submitted by: Thomas M. Kanarr Treasurer i i treasrep CITY OF PALM SPRINGS 6/26/2002 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS MAY 31, 2002 On Call Deposits Adjusted Basis Category Total Percentage Checking Account $ -422,932 State Pool 26,890,000 $ 26,467,068 75,19% Short Term Investments (I year or less) Corporate Notes 996,450 996,450 2.83% Medium Term Ynvestments (1 year to 3 years) Time Deposit 250,000 U.S. Gov't Agencies 2,988,680 3,238,680 9,20% Long Term Investments U.S.Gov't Agencies 4,498,594 4,498,594 12.78% Total Invested Cash $ 35,200,792 100.0097, *Some investments made prior to the implementation of the current Investment Policy exceed the 5 yeat limit tonsop TREASURER'S MONTHLY REPORT 626PW2 DETAIL OF INVESTMENTS MAY 31,2002 Coupon Yrcld Adjusted (memo only) Prmr Qtr. Par Value Rate Rating Maturity to Maturty Cost BBss Camgmy Total Market Value Somce Market Value On Call De ostts Cheekmg-Bank of America S N/A va,mble AAA open 190% $ 422,932 $ S 422,932 S 701,585 Local Agency Invest Fund(LAIF) 26,890,000 vuable N/A open 2.94% 26,890," 26,890,000 LAIF 26,890,000 26,467,069 Short Term Investments (I yc Or less) Corporate Notes Bear S¢arm Co,Inc 1,WQ000 6.13% A21A+ 02/01103 6.217. 996,450 I,020,840 BNY Western Te 1,022.510 99fi 450 Mcdmm Term love" (1 ear m 3 ours) Time Dc,,s, Downey Savings&Loon 250,000 3.20% AAA 11/18103 3.207, 25g000 250,000 Downey Savings 250,000 U S.Gov't Agency Securities Fed,M Home Ltan Mortgage Corp. 1,"," 4 30% N/A 10I01/04 430% 1,txk, W 1,006,094 BNY Western Tr 0 Federal Naoonal MrOg,c AsmmaOon 988,680 405% N/A 03/21/05 405% 988,690 1,005,000 BNY Western Tr 984,687 Federal Home Loan Bank I'M," 4.307. N/A 06/10/05 430% 1.000.000 1,005,937 BNYWesleo Tr 987,500 238,680 Lung Term I ' m (3 earsm 50.")ears) U.S.Gov't Agency Seal,,,, Federal Hume Loan Mort&ge Carp I'"'" 6.00% N/A W/14/W 600% I,o00,000 1,001,250 BNY Western Tr I,007,187 Federal Home Loan Mor,,c Corp 1,"'" 5.027. N/A 10/05/06 5.02% I,000,000 1,005,100 BNY Western Tr 985,120 Federal Home Loan Dank I,000,noo 5.15% WA M_/06/07 5.157, 1,"'" 1,WS,439 BNY Wes¢m Tr 988,750 Federal Home Loan Bank 1,W," 545% N/A 03/28/07 5.45% 1,"," 1,016,562 BNY Wesmn Ts 999,125 Focusing Corpormon(FICO) 500,000 980% NIA 04I06/I8 9.90% 498,594 697,030 NaoamBank 663,125 4,498,594 Total Invested Cash 5 35,200,792 5 35,4'l3,318 $ 34,075,419 treasrep TREASURER'S MONTHLY REPORT 6/26/2002 MISCELLANEOUS AND TRUST ACCOUNTS MAY 31, 2002 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Totat Invested Cash $ 35,200,792 $ 35,200,792 $ 35,200,792 Miscellaneous Accounts Petty Cash 2,650 N/A N/A open none 2,650 Revolving Fund-Bank of America 11,018 N/A N/A open none 11,018 Trust&Agency-Bank of America 623,787 N/A N/A open none 623,787 1911 Assessment Funds-Bank of America 0 N/A N/A open none 0 Rehab Loans(CDBG)-Washington Mutual 57,490 variable N/A open 0.74% 57,490 Downpymt Asst.(Housing Fund)-Washington Mutual 32,799 variable N/A open 0.74% 32,799 727,744 Deposits Held In Trost Time Deposits (FDIC Insured) Downey S&L(Cat Cyn Country Club) 59,700 2.81% N/A 2/12/2003 2.81% 59,700 Downey S&L(Cohen,Mark) 15,090 2.23% N/A 7/16/2002 2.23% 15,090 Downey S&L(Donovan Bequest) 17,332 2A7% N/A 10/17/2002 2.47% 17,332 Downey S&L(Palmer Cable TV) 4,643 2.62% N/A 1/19/2003 2 62% 4,643 Guaranty Bank(Coyote Springs Apt) 16,082 3.80% N/A 6/24/2002 3.80% 16,082 112,847 Total Cash Deposited $ 36,041,383 Ve"rep TREASURER'S MONTHLY REPORT 06/26/02 BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS MAY 31, 2002 Coupon Yield Adjusted (memu oNy) Prior Qu Par Value Rate Raring Maturity a,Maun[y Cost Basis Category Total Market Value So.. Market Value 1999 Wastewster/Master]-ease AIM Governme.t A,Agency Port Private 3,839 variable AAA open 142% 3,839 3,839 BNY Wester.Tr 3,831 U.S.Treasury Bill 2,162,446 3.50% AAA 07/25/02 350% 2,162,446 2,16?,610 BNY Western Tr 2,161,596 2001 Convention Center 2.166,285 Cash 1 1 1 BNY Western Tr 1 AIM Gaverranent&Agency Port(Private 74,092 v ariable AAA es open 142% 94,092 74,092 BNY Western Tr 85,122 AIG Investment Agreement 3,536,955 668% AAA 11/1121 668% 3,536,955 3,536,955 BNY Westem Tr 3,536,955 JP Morgan Treasury Plus Money Market 99 variable AAA open 1 33% 99 99 BNY Western Tr 0 199?Airport 3,611,147 Cash 0 0 0 BNY Western Tr I00,385 AIM Short-Term lnvesunentTrsy Private 545,439 variable AAA open 142% 545,439 545,439 BNY Western Tr 243,732 Bayensche lnvesnnent Agr 1207,600 7W% AAA 01/01/22 7.005, 1202,600 1207,600 BNY Western Tr 1,207,600 200I Senes B-Eausing 1,753,039 Cash 47 47 47 BNY Western Tr 61 AIM Goverrunent&Agency Port Private 3,808 variable AAA open 142% 3,808 3,809 BNY Western Tr 3,983 AIG lnveshnen[Agreamen[ 469,105 5.22% AAA O8101/21 5.225 468,105 468,105 BNY Wa,W.Tr 49,105 1994 Series A&B 471,9W AIM Government&Agency Pares Private 673,766 v armhle AAA open 142% 673,766 673,766 BNY Western Tr 672,461 TMG hu-e investment Agr 1,700,935 684% AA O9101/17 684% 1,900,935 1,700,935 BNY Western Tr 1,700,935 JP Morgan Treasury Plus Money Market 15 variable AAA ape. 1.529 15 15 BNY Wester Tr 15 1996 Muluple Capital Facilities Project 2,374,716 AIM Government&Agency Porff Private 637 variable AAA open 142% 630 632 BNY Western Tr 1,105,683 AMBAC Investment Agreement 1,729,999 640% AA M/01/27 640% 1,929,999 1,729,999 BNY Wesrem Tr 1,729,999 1"8 Airport GARB 1,730,636 Cash 0 0 0 BNYWeswm Tr 0 AND lavesuneat Agr -Reserve 561221 5637. AAA 01/01/28 50% 561,221 561,221 ANY Werem Tr 561,221 AIM Government&Agency Porff Private 233,796 variable AAA open 142% 233,796 233,796 BNY Western Tr 140,395 795,017 Qeazfep TREASURER'S MONTHLY REPORT W26/02 BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS MAY 31, 2002 Coupon Ywld Adjusted (memo only) Prior Qv. 1998 Airport PFC Per Value Raw Rang, Moriarty to Maoviry Cost Burs Cawa.,Total Make[Va1ue So.. Marke[Value AIG Investment Agr -Reserve 849,728 5707e AAA 01/01/28 5J0% 849,728 Gove A B49,]28 HNY Wesern Tr 849,R8 AM mment At Portt Private 355,]32 varable AAA open 1.42% 355,732 355,732 BOYWestern Tr 213,292 1998 Multiple Capital Wastewater ,205 460 AIM Gavemment&Agency POrtf Prose, 300,221 variable AAA open L42% 3W,221 300,221 BW Western Tr 473,740 1998 Assessment Dts[ac[155 ALB W,221 AIM Guvetmnen[&Agency Four Private 315,528 satiable AAA open 1.42% 315,528 315,529 BOY Western Tr 314,908 2W1 Asswmen[Ogtric[I57I158 15,528 Cash AIM Government&Agency poor Private 163,107 variable AAA open L42% 163,107 163,107 13 YWesern Tr 162029 Leine Nl-Fire Vehicle 63,108 First American Treasury Obligation 5 4A0% AAA open L60% 5 5 US Bark 5 base k2-Computers Firs[American Treasury ObltgaGOn 182 4.407. AAA Open 1.50% 182 182 US Rank Is, leaze N4-Fire Vehmles 82 Firs[American Treaury Obligation 8 440% AAA open 1.60% 8 8 QB Bank ] Lease N5-Pulse Vehmles 8 Well,Fargo Government Money Market 35 variable AAA open 35 35 Wells Fargo 35 35 Totals S 14.887,347 S 14,887,511 5 15,736,574 TREASURER'S MONTHLY REPORT treasrep CALCULATION OF INVESTMENT LIMITATIONS 06/26/02 MAY 31, 2002 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $27,463,518 1 year to 3 years 0.00% 50.00% 9.20% 3 years to 5 years 0.00% 30.00% 11.36% over 5 years N/A N/A 1.42% By Type of Investment: Bankers Acceptance - in total N/A 40.00% 0.00% Bankers Acceptance - single bank N/A 20.00% 0.00% Commercial Paper N/A 15.00% 0.00% Negotiable Certificates of Deposit N/A 30.00% 0.00% Corporate Notes N/A 20.00% 2.83% Money Market Mutual Funds N/A 10.00% 0.00% U.S. Government Agencies N/A 50.00% 21.27% Mortgage Pass Thru's N/A 10.00% 0.00%