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08-18-2015 - Successor Agency Treasurers Report for the Quarte - Item No. SA1 (2).pdfCity of West Covina Memorandum AGENDA ITEM NO. SA1 DATE August 18, 2015 Chair and Board Members of the Successor Agency FROM: Tom Mauk Interim Executive Director BY: Christa Buhagiar Finance Director SUBJECT: SUCCESSOR AGENCY TREASURER'S REPORT FOR THE QUARTER ENDED JUNE 30, 2015 RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, receive and file this report. DISCUSSION: The Investment Policy of the City of West Covina also applies to the Successor Agency to the West Covina Redevelopment Agency. In accordance with Section XVI of the City of West Covina Fiscal Year 2014-15 Statement of Investment Policy, a Treasurer's Report for the quarter ended June 30, 2015, is hereby submitted to the Successor Agency. It also includes cash held by trustees for all bond issues and cash in the various Successor Agency bank accounts, as well as reporting on compliance with the City's Investment Policy and providing a statement of the ability to meet budgeted expenditure needs for the following six months. The June 30, 2015, Report shows the Agency's portfolio increased by $1,526,942.17 from $6,705,084.23 on March 31, 2015, to $8,232,026.40 on June 30, 2015. The Agency's surplus funds are in investment pools with the State of California Local Agency Investment Pool (LAIF) and the Los Angeles County Investment Pool (LACIP). These funds are completely liquid, as the City can withdraw them at any time. Approximately 44% of the portfolio is on deposit in LACIP and the remaining small amount of available cash is on deposit in the checking account and LAIF. 0 The Bond Detail Report includes Fiscal Agent investments of Successor Agency cash which is being held to service various issues of bonded debt. fl TO: Prepared by: A Nicole Lugotu- Accounting Manager Reviewed by: Christa Buhagiar Finance Director Colleen B. Rozatti, City Treaskrey SUCCESSOR AGENCY STATEMENT OF TREASURER'S ACCOUNTABILITY JUNE 30, 2015 TYPES OF DEPOSITS: March 31, 2015 DEPOSITS WITHDRAWALS June 30, 2015 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING $ 56,648.04 $ 7,656,100.00 $ 3,069,605.92 $ 4,643,142.12 SUB-TOTAL $ 56,648.04 $ 7,656,100.00 $ 3,069,605.92 $ 4,643,142.12 OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) $ 2,039.56 $ 1.31 $ - $ 2,040.87 LOS ANGELES COUNTY POOL (LACIP) 6,646,396.63 9,446.78 3,069,000.00 3,586,843.41 SUB-TOTAL $ 6,648,436.19 $ 9,448.09 $ 3,069,000.00 $ 3,588,884.28 TOTAL $ 6,705,084.23 $ 7,665,548.09 $ 6,138,605.92 $ 8,232,026.40 The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next month. In June 2015, the Successor Agency received funds from the DOF-approved ROPS for the July to December 2015 period which will provide sufficient cash flow liquidity to meet estimated expenditures from July to December 2015. This report is accurate with respect to all information received as of July 29, 2015. '----1NED INTEREST YIELD THIS PERIOD: 0.74% SIX-MONTH TREASURY BILL YIELD: 0.11% SUBMITTED BY: Christa Buhiagiar, Finance Director 0 WEST COVINA SUCCESSOR AGENCY BOND DETAIL REPORT JUNE 30, 2015 Type of Bond Type of Investment Description of Issuer Maturity Date Market Value* Original Cost Rate I 1998 Housing Set-Aside Bonds Series A, B Bond First American Treas Reserve Series A First American Treas Reserve Series B First American Treas Project Fund Series B First American Treas Principal Account First American Treas Oblig Cl d Corp Trust Oblig Cl d Corp Trust Oblig Cl d Corp Trust Oblig Cl d Corp Trust Oblig Cl d Corp Trust First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. First American Funds, Inc. 9/1/2025 0.03 $ 0.03 9/1/2025 344,290.00 344,290.00 9/1/2025 101,650.00 101,650.00 9/1/2025 114,680.87 114,680.87 9/1/2025 194.59 194.59 Bond Total $ 560,815.49 $ 560,815.49 1999 Tax Allocation Bonds Revenue Fund First American Tress L/C Fund Cash Oblig Cl d Corp Trust First American Funds, Inc. 11/1/2029 11/1/2029 Bond Total $ 1.00 1.00 First American Funds, Inc. 9/1/2031 $ 336.88 $ 336.88 U.S. Tress & Agency 9/1/2031 799,912.00 779,100.62 5.21% First American Funds, Inc. 9/1/2031 50.43 50.43 Bond Total $ 800,299.31 $ 779,487.93 2001 RDA Housing Set-Aside T/A Rev Bonds Reserve Account First American Tress Oblig Cl d Corp Trust Reserve Account FNMA DISCOUNT NOTE Project Fund First American Treas Oblig Cl d Corp Trust 2002 RDA T/A Revenue Refunding Bonds Special Fund First American Tress Oblig Cl d Corp Trust Reserve Fund First American Government Obligation Fd CL D First American Funds, Inc. First American Funds, Inc. 9/1/2035 $ 24.83 $ 24.83 9/1/2035 996,532.50 996,532.50 Bond Total $ 996,557.33 $ 996,557.33 *Market valuations have been provided by U.S. Bank GRAND TOTAL $ 2,357,672.13 $ 2,336,861.75 City of West Covina Memorandum AGENDA ITEM NO SA2 DATE August 18, 2015 TO: Mayor and City Council FROM: Torn Mauk Interim City Manager BY: Cluista Buhagiar Finance Director SUBJECT: RESOLUTION AUTHORIZING THE CITY ACTING AS SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY TO USE THE LOCAL AGENCY INVESTMENT RIND (LAIF) AS AN INVESTMENT ALTERNATIVE RECOMMENDATION: It is recommended the City Council, acting as the Successor Agency of the West Covina Redevelopment Agency, adopt the following resolution entitled: RESOLUTION NO. 2015-59 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY AUTHORIZING THE USE OF THE LOCAL AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN INVESTMENT ALTERNATIVE. DISCUSSION: The State of California allows local government agencies to pool investment funds in the Local Agency Investment Fund (LAIF). This allows participants to achieve greater diversity and higher return with complete liquidity as part of the State's professionally managed portfolio. The City of West Covina and the West Covina Successor Agency currently have investment accounts with LAIF. The interest rate for the most recently completed quarter ending June 30, 2015, was 0.28%. The California State Treasurer's office has asked the City to update the resolutions authorizing participation in the pool. The new resolution authorizes the Finance Director and the Accounting Manager as administrators of West Covina's LAIF accounts and provides for the Accountants to be their delegates. FISCAL IMPACT: None. Christa Buhagiar Finance Director ATTACHMENT 1 ,,, ATTACHMENT 1 RESOLUTION NO. 2015-59 RESOLUTION NO. 2015-59 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY AUTHORIZING THE USE OF THE LOCAL AGENCY INVESTMENT FUND UNDER THE OFFICE OF THE CALIFORNIA STATE TREASURER AS AN INVESTMENT ALTERNATIVE. WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the West Covina City Council acting as the Successor Agency to the West Covina Redevelopment Agency does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein as in the best interests of the Agency. WHEREAS, it is deemed wise and prudent to establish an account with the office of the California State Treasurer for the purpose of using the Local Agency Investment Fund as an investment alternative. NOW, THEREFORE, the City Council of the City of West Covina acting as the Successor Agency to the West Covina Redevelopment Agency does hereby resolve as follows: SECTION 1. That the City of West Covina City Council acting as the Successor Agency to the West Covina Redevelopment Agency hereby authorizes the establishment of an investment account with the office of the California State Treasurer Local Agency Investment Fund titled: West Covina Successor Agency 1444 West Garvey Avenue West Covina, CA 91790 Attn: Finance Director SECTION 2. That the City of West Covina City Council acting as the Successor Agency to the West Covina Redevelopment Agency agrees to deposit or withdraw money in the Local Agency Investment Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated herein. SECTION 3. That the West Covina City Council authorizes the following named local officials to order the deposit or withdrawal of money in the Local Agency Investment Fund: Authonzed By Name Title Signature Resolution Delegation Christina Buhagiar Finance Director X Nicole Lugotoff Accounting Manager X Evanette Gettler Accountant X Brenda Ramirez Accountant X Serena Bubenheim Accountant X SECTION 4. That the City Clerk shall certify to the passage and adoption of the resolution. APPROVED AND ADOPTED this 18th day of August 2015. Fredrick Sykes Mayor APPROVED AS TO FORM: ATTEST: Kimberly Hall Barlow Nickolas S. Lewis City Attorney City Clerk I, Nickolas S. Lewis, Secretary of the Successor Agency to the West Covina Redevelopment Agency of the City of West Covina, do hereby certify that the foregoing Resolution No. 2015-59 was duly adopted at a regular meeting of the Successor Agency held on the 18th day of August 2015, by the following vote of the Council: AYES: NOES: ABSENT: ABSTAIN: Nickolas S. Lewis City Clerk