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    LOCAL GOVERNMENT
 
 
 
                     NEWS REPORT
                                                                                           February 2009
 
 
INTEREST RATES
The average annualized yield for January was 1.9548%. The rates for January were as follows:
       January 1st – 6th             2.20%
                th      th
       January 7 – 13                2.10%
       January 14th – 15th           2.00%
       January 16th – 21st           1.90%
                  nd       th
       January 22 – 26               1.80%
       January 27th – 29th           1.70%
       January 30th – 31st           1.60%


UPCOMING HOLIDAY
Due to the Presidents’ Day holiday, the State Treasurer’s Office, Fed wire service and Oregon banks
will be closed Monday, February 16th. Any ACH transfers called prior to 1:00 pm on Friday, February
13th, will settle at your bank on Tuesday, February 17th. Any ACH transfers called between 1:00 pm
Friday, February 13th, and 1:00 pm Tuesday, February 17th, will settle at your bank on Wednesday,
February 18th. In addition, local government account statements will not be produced for February 16th,
due to the closures.

UPDATED INFORMATION STATEMENT AVAILABLE
An updated version of our Local Government Investment Pool Information Statement was recently
made available on our website. The Information Statement contains several topics of interest to Local
Government Pool participants. A sample of topics covered include; interest allocation, expenses of the
LGIP, instructions on requesting new pool accounts, changes in authorization and daily pool cutoff
times. The Information Statement can be viewed via the link below:

Local Government Pool Information Statement

ONLINE POOL ACCOUNT STATEMENTS
We currently have 395 local government users accessing their pool account statements via the Internet.
Local governments ready to make the move to online statement access may contact us via e-mail at
ost.banking@state.or.us. An Office of the State Treasurer Customer Service Representative will work
with local governments to set up access to our online statement software.

The online statement software was designed by the Office of the State Treasurer (OST) to enable users
to view, save, and print daily and/or monthly OST pool account statements at their convenience 24 hours
a day, 7 days a week. Statements are updated each afternoon for access to same day information, and
three years of history is available online.

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 Local governments are not required to use the Online Statement application and may opt to continue to
 receive their statements via mail if they desire; although, online access will provide much quicker access
 to daily and monthly pool account statements.

 EDUCATIONAL SESSION AT THE OMFOA/OACTFO CONFERENCE
 Investment Division staff from the Office of the State Treasurer will be providing an educational session
 during the upcoming OMFOA/OACTFO Conference. This conference takes place March 8-11 at the
 Salishan Resort in Gleneden Beach, Oregon. The educational session described below will take place as
 part of the conference on Tuesday, March 10th, at 1:30 PM.

 Review of the Oregon Short-Term Fund (OSTF) and discussion of suitability of Temporary
 Liquidity Guarantee Program (TLGP) and other securities in today’s trying times:
 Perrin Lim, Senior Fixed Income Investment Officer and Tom Lofton, Investment Officer and Senior
 Credit Analyst, will discuss the current status and strategy of the OSTF. Additionally, Perrin and Tom
 will discuss the suitability of the new FDIC-backed TLGP securities and other instruments in local
 government portfolios in light of the dislocations we are experiencing in the financial markets.

 If you have any questions, please contact Heidi Rawe at (503) 378-4552.

 ARE YOU WORRIED ABOUT YOUR BANKS?
 The State Treasurer’s Office has received a number of calls from local finance officers who are worried
 about their banks. While we want to assure you that we are doing everything we can to ensure that
 banks are appropriately collateralized under ORS Chapter 295, we would remind you that the FDIC has
 offered banks the ability to participate in a program that provides for unlimited insurance coverage of
 deposits in non-interest bearing transaction accounts. If you remain concerned about the safety of your
 deposits, this may be something you want to consider pursuing. If so, you should contact your bank to
 see if it participates in this program.

 Also, keep in mind that if you utilize sweep arrangements with your bank and the bank is closed, the
 FDIC will complete the sweep transaction at the close of business on the date of closure. This will be
 done even if the deposits are being swept into non-insured products. As always, we encourage you to be
 sure that any sweep arrangements meet the delivery vs. payment requirement you are subject to.

 OREGON SHORT TERM FUND MAKES TOP TEN LIST!!!
 The Oregon Short Term Fund was ranked fourth on the TRACS Top Ten government pools and is THE
 top state pool. Please see the attached Press Release from the Orange County Treasurer showing the top
 ranked pools. As the article says, it has been an extremely difficult time for investing; but being the top
 rated state pool is evidence that OST’s Short Term investment staff is doing an excellent job!



Debbe Myers                                                 Phone: (503) 373-1194 or 1-800-452-0345
Local Government Coordinator                                Fax: (503) 373-1179
350 Winter Street NE, Suite 100                             Voice Response System (VRS): 1-877-888-1767
Salem, Oregon 97301-3896                                    E-mail: lgip@mail.ost.state.or.us
Website: http://www.ost.state.or.us/divisions/finance/LocalGovernment/Index.htm
Local Government News List: http://listsmart.osl.state.or.us/mailman/listinfo/local-gov-news 


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               CHRISS W. STREET
               ORANGE COUNTY TREASURER
               11 Civic Center Plaza ▪ Santa Ana, Ca 92701 ▪ www.ttc.ocgov.com


                          PRESS RELEASE
 FOR IMMEDIATE RELEASE                                         CONTACT: KEITH RODENHUIS
 JANUARY 26, 2009                                              (714) 834-3545 FAX (714) 834-2912
                                                               krodenhuis@ttc.ocgov.com


                TRACS TOP TEN RATING AWARDED TO
                ORANGE COUNTY INVESTMENT POOLS
(Santa Ana, CA) – Orange County Treasurer Chriss W. Street announced today that the $2.1
billion dollar Orange County Investment Pool and $1.8 billion dollar Orange County Educational
Investment Pool were among the TRACS Top Ten government pools based on annualized
returns for 2008 according to TRACS Financial Research.

Orange County is the only county in the Country to have both a Standard & Poor’s AAAm rating
and appear on the TRACS Top Ten list.*

“This was a difficult year for investors, and I’m pleased that we continue to be leaders in the area
of municipal investing,” said Orange County Treasurer Chriss Street. “The taxpayers have a
great investment team that takes pride in their research and investment process.”

                                   2008 ANNUALIZED RETURNS
RANK                            POOL NAME                              ANNUALIZED RETURN
 1      Walla Walla County Investment Pool                                   3.76%
 2      San Bernardino County Investment Pool                                3.57%
 3      San Diego County Investment Pool                                     3.44%
 4      Oregon State Pool                                                    3.26%
 5      Utah Public Treasurers Investment Pool                               3.25%
  6     Orange County Investment Pool*                                       3.16%
  7     California LAIF                                                       3.15%
  8     Orange County Educational Investment Pool*                           3.11%
   9    Idaho LGIP                                                            2.95%
  10    Virginia State Non-Arb Program SNAP                                   2.90%

Under the leadership of Chriss Street, the County investment portfolio has been restructured to
concentrate on ultra conservative investments backed by the US government. The Orange
County Treasurer’s office currently manages $5.7 billion for the county, schools, cities and
agencies.

TRACS Financial Research is an independent firm that monitors the monthly performance of
state, county and local investment pools. For more information about TRACS Financial
Research contact: Jeffery Flynn, Chief Investment Strategist, (435) 469-8277.

                                                 ###
                                                       OREGON SHORT-TERM FUND ANALYSIS



  4.20
  4.05
  3.90
  3.75
  3.60
  3.45
  3.30
  3.15
  3.00
  2.85
  2.70
  2.55
  2.40
  2.25
  2.10
  1.95
  1.80
  1.65
  1.50
  1.35
  1.20
  1.05
  0.90
  0.75
  0.60
  0.45
  0.30
  0.15
  0.00
   8/31/2008                     9/30/2008             10/31/2008                   11/30/2008                 12/31/2008             1/31/2009


                                                              OSTF                  BILLS               CD's




                               Oregon Short-Term Fund Analysis as of January 31, 2009

                                               8/31/2008 9/30/2008 10/31/2008 11/30/2008 12/31/2008 1/31/2009

  IP
LG AV DO LLARS INVESTED (MM )                       4,263      4,095        3,588            4,841    5,390     5,143
STATE AGENCY A DOLLARS INVESTED (MM
               V                    )               5,729      5,404        5,592            5,854    5,533     5,951
TOTAL OSTF AV DOLLARS INVESTED (MM)                 9,992      9,499        9,180           10,695   10,923    11,094
OST ANNUAL YIELD (ACT/ACT)                           3.25       2.90         2.50             2.43     2.30      1.96
3-MO UST BILLS (BOND EQ YLD)                         1.72       0.91         0.38             0.05     0.08      0.23
3-MO JUMBO CDS (ACT/360)                             2.65       4.00         1.70             1.67     0.85      0.60


NOTE: The OST ANNUAL YIELD represents the average annualized yield paid to accountholders during the month. Since interest accrues to accounts
on a daily basis and the rate paid changes during the month, this average rate is not the exact rate earned by each account.

3-MO UST BILLS yield is the yield for the Treasury Bill Issue maturing closest to 3 months from monthend. 3-MO JUMBO CDS is the highest posted rate
received by the Treasury fromOregon banks as of monthend. Consequently, whereas the yield on UST Bills should normally be lower than CD rates, the
fact that the quotes are up to a week different in time may result in an apparent reversal of this situation.



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