Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

M E MO R A N D U M







TO: Mayor and Council Members DATE: September 14, 2007





THROUGH: Isaiah Hugley SUBJECT: MONTHLY INVESTMENT City

Manager REPORT



FROM: Pamela J. Hodge

Finance Director



________________________________________________________________________

_





The following is the August 2007 investment report and is submitted to the

Mayor and Council summarizing the Investment Portfolio, Overall Portfolio,

Portfolio Highlights and the Monthly Economic Highlights



August 2007



INVESTED PORTFOLIO



August 2007 August 2006 July 2007 Change

Total Invested $126,178,144 $96,534,555 $123,562,527 2,615,617

Avg. Yield 5.76% 5.97% 5.73% +.03

Avg. Maturity 3.48 3.02 3.54 -.06

Spread/5-year Treas +152 bps +128 bps +117 bps + 35 bps



OVERALL PORTFOLIO



August 2007 August 2006 July 2007 Change

Total Invested $173,112,366 $143,512,866 $174,034,175 -921,809

Avg. Yield 5.61% 5.73% 5.59% +.02

Avg. Maturity 2.54 2.03 2.51 +.03

Spread/2-yearTreas +148 bps +95 bps +107 bps + 41 bps



PORTFOLIO HIGHLIGHTS



Georgia Fund I interest rate was 5.2666%, down from 5.3001% in July.

CB&T Now interest rate was 4.90%, unchanged from June. (fed funds ? 35 bps)



MONTHLY ECONOMIC HIGHLIGHTS

The Federal Reserve met August 7 and voted to hold its interest rate target at

5.25%, where it has been for almost a year. Credit-market turmoil continues to

threaten the economy and most economists expect the FOMC to lower its target

rate by at least a quarter-percentage point at the September 18 meeting.

The Commerce Department reported real gross domestic product (GDP) increased at

an annual rate of 4.0% in the second quarter of 2007, due to improvements in

international trade and business investment. But, the growth spurt could be

short-lived. There are concerns that the recent turmoil in financial markets

could seriously dampen economic activity in the second half of this year.

The Labor Department reported the consumer-price index (CPI), a measure of

inflation on the retail level, rose 0.1% in July. Core CPI, excluding food and

energy, was up 0.2%. The year-on-year core CPI inflation rate was 2.2%.

The Labor Department reported the producer-price index (PPI), a measure of

inflation at the wholesale level, rose 0.6% in July, more than reversing June?s

0.2% drop. However, the core PPI, which excludes food and energy, was up just

0.1%.

The Conference Board Consumer Confidence Index fell in August to 105 from 111.9

in July. The decline was attributed to a softening of business and

labor-market conditions as well as volatility in financial markets and

continued subprime housing woes.

Nonfarm payroll employment fell by 4,000 in August, the first clear evidence

the turmoil in the financial markets is spilling over into the real economy.

The unemployment rate was unchanged at 4.6%, but only because the labor force

fell sharply. In Columbus, our unemployment rate jumped from 5.4% in June to

5.7% in July, due to an increase in the number of unemployed and an increase in

the labor force.

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