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12-06-2011 - City Treasurers Report for the Month of October 2 - Item 3 (2).pdfCity of West Covina Memorandum Item No. 3 Date December 6, 2011 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman, Assistant City Manager SUBJECT: CITY TREASURER'S REPORT FOR OCTOBER 2011 RECOMMENDATION: is recommended the City Council receive and file this report. DISCUSSION: Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief fiscal officer may submit quarterly reports to their legislative body. This report is to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments, and money held by the local agency. It must also include a statement that the portfolio is in compliance with the City's investment policy, or manner in which it is not in compliance, and note the ability of the local agency to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money may not be available. Although it is no longer a requirement to submit quarterly reports to the local legislative body, the Finance Department will continue to submit treasurer's reports to the West Covina City Council each month. The October Report shows the City's portfolio increased by $263,004 from $45,687,775 on September 30, 2011, to $45,950,779 on October 31, 2011. Beginning with the May 2001 report, average maturity information has been provided for investments in the City's portfolio. The overall average maturity of the portfolio is 805 days or approximately two years. Approximately 2 percent of the portfolio is on deposit in various bank accounts. These funds are available to satisfy obligations as needed. The majority of the portfolio is on deposit in two investment pools. Approximately 33 percent is held in the State of California Local Agency Investment Fund (LAIF) and 35 percent is in the Los Angeles County Investment Pool (LACIP). These funds are completely liquid since the City could withdraw them at any time. The portfolio also includes two long-term, high interest investments made in the early 1980s which constitute approximately 30 percent of the portfolio. _ Prepared by: Dennis Swink Revi wed/Approved by: Thomas Bachman Controller Finance Director EARNED INTEREST YIELD THIS PERIOD: 2.961% SIX-MONTH TREASURY BILL YIELD: 0.050% REVIEWED BY: Dennis Swink, City Controller SUBMITT CITY OF WEST COVINA STATEMENT OF TREASURER'S ACCOUNTABILITY OCTOBER 31, 2011 TYPES OF DEPOSITS: CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING WELLS FARGO BANK GEN AUTO & LIABILITY WELLS FARGO BANK WORKER'S COMPENSATION WELLS FARGO PAYROLL SUB-TOTAL OTHER INVESTMENTS: WELLS FARGO SWEEP FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) FEDERAL HOME LOAN BANKS (FHLB) UNITED STATES TREASURY BILL LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) LOS ANGELES COUNTY POOL (LACIP) SUB-TOTAL SEPTEMBER 30 252,782.00 1,000.00 50,000.00 79,003.14 382,785.14 3,061,080.57 3,688,593.75 10,199,962.50 13,252,808.69 15,102,544.81 45,304,990.32 DEPOSITS 12,170,745.96 71,930.52 59,635.68 2,721,620.23 15,023,932.39 1,991,979.88 2,938,862.96 872,394.93 6,803,237.77 WITHDRAWALS 12,126,636.96 71,930.52 59,635.68 2,727,180.94 14,985,384.10 4,378,782.81 1,200,000.00 5,578,782.81 OCTOBER 31 296,891.00 1,000.00 50,000.00 73,442.43 421,333.43 0.917% 674,277.64 1.467% 3,688,593.75 ** 8.027% 10,199,962.50 "* 22.198% 0.000% 0.000% 14,991,671.65 32.626% 15,974,939.74 34.765% 45,529,445.28 99.083% TOTAL 45,687,775.46 20,827,170.16 20,564,166.91 45,950,778.71 100% **These two high interest long term investments were made before State Law limited investments to a maximum five-year term. It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 17, 2011. Thomas achman, Ass! ant City Manager/Finance Director ity of West Covina Portfolio Detai October 31, 2011 AVERAGE 10/3112011 09/30/201 INVESTMENT INVESTMENT ISSUER MATURITY PURCHASE DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET NUMBER TYPE DATE DATE MATURITY VALUE* VALUE* 1986-06-01 ** FHLMC U.S. GOVERNMENT AGENCY 06/01/16 06/01/86 313400MC4 8.250 1651 1985-12-10 ** FNMA U.S. GOVERNMENT AGENCY 12/10/15 12/10/85 313586UB3 10.350 1480 1992-04-20 LACIP LOS ANGELES COUNTY TREASURER*** 1.200 04/20/92 542 N/A 1989-10-19 LAIF STATE OF CALIFORNIA 0.385 10/19/89 229 N/A 805 TOTALS: 7.728 10,199,962.50 9,555,000.00 11,883,649.05 11,910,785.25 10,199,962.50 9,555,000.00 11,883,649.05 11,910,785.25 8.418 3,688,593.75 3,000,000.00 4,098,930.00 4,116,690.00 3,688,593.75 3,000,000.00 4,098,930.00 4,116,690.00 1.200 15,974,939.74 15,974,939.74 15,974,939.74 15,974,939.74 0.385 14,991,671.65 14,991,671.65 14,991,671.65 14,991,671.65 44,855,167.64 43,521,611.39 46,949,190.44 46,994,086.64 * MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK. ** These two high interest long term investments were made before State Law limited investments to a maximum five-year term. *** For this month's report, September 2011 LACIP Earnings Rate and September 2011 LACIP Weighted Average Days to Maturity were used due to the unavailability of October 2011 figures as of the writing of this report. Note: The Wells Fargo Sweep account was not included in the calculation of average maturity. 45,899.19 5,798.80 6,894.78 12,693.58 58,592.77 312,200.00 1,622.55 313,822.55 52,819.27 3,728,275.89 3,834,732.00 7,563,007.89 7,615,827.16 403.48 9,799.37 10,202.85 SUB-TOTAL 7,761.82 841.74 OTHER INVESTMENTS: LOCAL AGENCY INVESTMENT FUND (LAIF) LOS ANGELES COUNTY POOL (LACIP) 4,098,477.09 5,428,837.22 376,000.00 1,601,000.00 SUB-TOTAL 9,527,314.31 1,977,000.00 TOTAL 9,535,076.13 1,977,841.74 COMMUNITY FACILITIES DISTRICT REVENUE FUND WELLS FARGO BANK C.F.D. CHECKING LOS ANGELES COUNTY POOL (LACIP) 200,460.02 208,176.82 512,256.54 200,000.00 TOTAL FOR C.F.D. REVENUE FUND 408,636.84 712,256.54 EARNED INTEREST YIELD THIS PERIOD: 0.798% SIX-MONTH TREASURY BILL YIELD: 0.050% REVIEWED BY: Dennis Swink, City Controller Angel F. Rateria, Revenue Services Supervisor PREPARED COMMUNITY DEVELOPMENT COMMISSION STATEMENT OF TREASURER'S ACCOUNTABILITY OCTOBER 31, 2011 TYPES OF DEPOSITS: SEPTEMBER 30 DEPOSITS WITHDRAWALS OCTOBER 31 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING 4,761.82 45,899.19 841.74 49,819.27 PACIFIC WESTERN NAT BANK RDA PROGRAMS (SBA/FTHB/HPP) 3,000.00 3,000.00 It has been verified that this investment portfolio is in conformity with the City of West Covina's investment policy which was approved by the City Council on January 18, 2005. The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report is accurate with respect to all information received as of November 17, 2011.