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CAFR…Question#1

Full text online at www.lauderdalebythesea-fl.gov

From the notes…2007… investments…

9/30/07…LBTS invested $7,046,903 in the State Board of Administration’s Local Government Surplus Funds Trust Fund Investment Pool…(POOL)…

11/29/07…the State Board Administration implemented a temporary freeze on the assets…held in the pool due to unprecedented amount of withdrawals….

12/4/07….based on recommendations from an outside financial adviser the POOL was restructured into 2 pools…

Pool A… consisted …of all money market appropriate assets…approx. $12 billion or 86% of Pool assets…

Pool B…consisted …of assets either defaulted on payment, paid more slowly than expected and/or any significant credit and liquidity risk…approx. $2 billion or 14% of Pool assets…

At the time of the restructuring all current participants had their existing balances proportionately allocated into Pool A and Pool B….

At that time Pool participants could withdraw 15% of their balance or $2 million whichever was greater without penalty…

Withdrawals from Pool A in excess of the above limit were subject to a 2% redemption fee…New investments were not subject to the redemption fee or withdrawal restrictions…Future withdrawal provisions from Pool A would be subject to further evaluation based on maturities of existing investments and liquidity requirements of the Pool…..

At that time Pool B participants were prohibited from withdrawing any amount from the Pool and a formal withdrawal policy had not been developed…In addition, full realization of the principal value of Pool B assets were not readily determinable….

12/6/07….The town withdrew $3,980,304 dollars

12/31/07…The town had $2,093,410 (unaudited) in Pool A

……………….The town had $1,018,490 (unaudited) in Pool B…40.6% of Fund B was below purchase guidelines…

The Town Manager has stated…we believe ….that LBTS pulled out all of our money from the State Pools…and we were not hit with any losses…..

Question #1….

A…When were the monies left in each Pool as of 12/07 ….withdrawn?….

B….Were they withdrawn with or without paying any penalties?….

more on the CAFR to come….

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