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01-08-2001 - November 2001 Treasurer's ReportCity of West Covina Memorandum AGENDA Item No. C- 5 Date TO: Andrew G. Pasmant, City Manager and City Council FROM: Artie A. Fields, Acting Finance Director SUBJECT: NOVEMBER 2001 TREASURER'S REPORT SUMMARY: January 8, 2001 This staff report serves as a transmittal of the monthly Statement of Treasurer's Accountability and provides a brief explanation of that report. BACKGROUND: Section 53646 of the Government Code requires a city's- treasurer or chief fiscal officer to 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. On January 1, 2001, AB943 took affect, amending the law to also require local agencies to submit reports to the State of California for the second and fourth quarters of each year. The June 2001 report was the first report submitted to the State. DISCUSSION: Treasurer's reports are submitted to the West Covina City Council monthly. The November Report (shows the City's portfolio decreased from $65,457,975.12 on October 31, 2001, to $63,470,317.05 on November 30, 2001). Beginning with the May report, average maturity information has been provided for investments in the City's portfolio. The overall average maturity of the portfolio is 1,598 days or approximately four years. This unusually long maturity is caused by two, long term, high interest investments made in the early 1980s, which constitute approximately twenty percent of the portfolio. Approximately fifty percent of the portfolio is on .deposit in the Local Agency Investment Fund (LAIF). These funds are completely liquid since the City could withdraw them at any time. The remaining thirty percent of the portfolio has an average maturity of less than two years. An explanation of the Treasurer's report features has been attached. RECOMMENDATION: It is recommended the City Council receive and file this report. Prepared by Q ._SLV Dennis Swink Artie Controller Acting and d by .el s ce Director M • How to Read the Treasurer's Report Summary Page. The monthly treasurer's report is comprised of two documents. The first provides a one -page summary of investments (Attachment -A). • A-1 provides a general description of investment type. • A-2 shows the balances for each investment type as of the end of the prior month. • A-3 shows how much was deposited in each category during the month. • A-4 shows withdrawals. • A-5 shows the balances in each investment category at the end of the month. • A-6 shows what percentage of the portfolio is invested in each investment category. • A-7, located in the left hand margin denotes an asterisked note, which states: "NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS". This refers to the negative bank balances shown in columns A-2 and A-5. These negative numbers are the result of a sweep account the City has set up with Wells Fargo bank. This enables us to keep -the majority of our funds on deposit in an interest bearing account until outstanding checks clear the bank. When a check does clear, the required funds are automatically swept in from the interest bearing account into the checking account. With this arrangement, it is not uncommon for the City to have outstanding checks in an amount that exceeds the money on deposit in our Wells Fargo Checking Accounts. When this happens, these accounts show a negative balance. This should not be a concern as long as the amount on deposit in the Wells Fargo Sweep account is sufficient to cover the outstanding checks. • A-8, located in the left hand margin highlights the statements regarding compliance with the City investment policy and sufficient cash flow available to meet expenditures for the next six months. As discussed earlier, these statements are required. • A-9 in the left hand margin and A-10 provide a kind of scorecard comparing the interest earned to six month treasury bills Portfolio Details. The second part of the report provides detailed information on individual investments as illustrated in Attachment-B. • B-1 lists the investment number assigned by City staff for tracking purposes. • B-2 lists investment type. (This information is required.) These are shown in their abbreviated form. The full titles of these abbreviations are in A-1 on the summary page. • B-3 lists the issuer. (This information is also required.) .• B-4 shows the date of purchase. • B-5 shows the maturity date. (This information is required.) • B76 shows the average days to maturity for each class of investment. • B-7 lists the CUSIP number. • B-8 lists the interest rate. - • B-9 lists the yield. • B-10.1ists the cost of each investment. (This information is required.) • B-11 lists the PAR value. (This information is required.) • B-12 lists the market value as of the end of the current month. (This information is required.) • B-13 lists the market value as of the end of the previous month. • B-14 tells the reader that the market values are provided by Union Bank. CITY OF WEST COVINA STATEMENT OF TREASURER'S ACCOUNTABILITY JULY 31, 2001 A-1 A-2 A-3 A-4 A-5 A-6 TYPES OF DEPOSITS: JUNE 30 DEPOSITS WITHDRAWALS July 31 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING $ 110,463.49 13,383,165.05 $ 13,365,850.43 $ 127,778.11 WELLS FARGO GENERAL AUTO & LIABILITY (8,471.37) * 21,230.41 49,335.23 (36,576.19) WELLS FARGO WORKER'S COMPENSATION (40,325.41) * 74,199.32 106,744.54 (72,870.63) WELLS FARGO PAYROLL (231,925.22) * 2,341,194.25 2,184,280.66 (75,011.63) WELLS FARGO BAIL/FINE - WELLS FARGO CDBG DEFERRED LOAN PROGRAM 120,913.84 199.42 - 121,113.26 PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM 110,542.95 200,124.35 - ' 310,667.30 SUB -TOTAL $ 61,198.28 $ 16,020,112.80 $ 15,706,210.86 $ 375,100.22 0.543% OTHER INVESTMENTS: WELLS FARGO SWEEP $ 2,982,024.45 $ 5,494,859.08 $ 6,640,255.50 $ 1,836,628.03 2.658% ESCROW ACCOUNT 37,569.28 111.36 5.00 37,675.64 0.055% FEDERAL HOME LOAN BANK (FHLB) 6,959,010.00 - - 6,959,010.00 10.070% FEDERAL FARM CREDIT BANK (FFCB) 3,486,225.00 - 2,990,790.00 495,435.00 0.717% FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 6,695,593.75 1,000,000.00 5,695,593.75 8.242% FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50 - 10,199,962.50 14.759% CORPORATE MEDIUM TERM NOTES (MTN) 919 - - 9,988,553.47 , 14.453% LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) P372,959.35 364,609.87 30,000,000.00 43:410% LOCAL AGENCY INVESTMENT FUND - W.C.P.F.A..(LAIF) 1 3 1,826.66 139,861.52 0.202% LOS ANGELES COUNTY POOL (LACIP) 5 5 . 3,303,408.67 500,000.00 3,380,764.18 4.892% SUB -TOTAL 71,055,979.34 $ 9,173,165.12 $ 11,495,660.37 $ 68,733,484.09 99.457% TOTAL $ 71,117,177.62 $ 25,193,277.02 $ 27,201,871.23. $ 69,108,584.31 100% A-7 *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS A-8 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 May 1, 2001. .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 August 31 A-9 EARNED INTEREST YIELD THIS PERIOD: 5.565% A-10 SIX-MONTH TREASURY BILL YIELD: 3.45% . REVIEWED BY: PREPARED BY: Dennis Swink, City Controller Angel F. Patena, Departmental Aide SUBMITTED BY: Artie Fields, Acting Finance Director APPROVED BY: Marian V. Smithson, City Treasurer B-1 B-2 B-3 City of West. Covina Portfolio Details July 31; 2001 B-4 B-5 B-6 B-7 B-8 B-9 B-10 B-11 B-12 B-13 AVERAGE 7/31/2001 6/30/2001 INVESTMENT INVESTMENT. ISSUER PURCHASE MATURITY DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET NUMBER TYPE DATE DATE MATURITY VALUE * VALUE 5485 FFCB U.S. GOVERNMENT AGENCY 5486 FFCB U.S. GOVERNMENT AGENCY 5488 FFCB U.S. GOVERNMENT AGENCY 5465 FFCB. U.S. GOVERNMENT AGENCY 5487 FHLB U.S. GOVERNMENT AGENCY 5489 FHLB U.S. GOVERNMENT AGENCY 5496 FHLB U.S. GOVERNMENT AGENCY 5444 FHLB U.S. GOVERNMENT AGENCY 5445 FHLB U.S. GOVERNMENT AGENCY 5450 FHLB U.S. GOVERNMENT AGENCY- 5473 FHLB U.S. GOVERNMENT AGENCY 4770 FHLMC U.S. GOVERNMENT. AGENCY 2454 FNMA U.S. GOVERNMENT AGENCY 5451 FNMA U.S: GOVERNMENT AGENCY 5475 FNMA U.S. GOVERNMENT AGENCY 4693 LACIP LOS ANGELES COUNTY TREASURER 3914 LAIF STATE OF CALIFORNIA 5273 LAIF STATE OF CALIFORNIA 5476 MNYMKT MARQUETTE NATIONAL BANK 03/02/00 07/02/01 31331 HZF7 03/03/00 07/27/01 31331HD46 03/03/00 10/01 /01 31331 HG35 01/14/99 01/14/02 31331RT96 61 03/08/00 09/17/01 0 03/08/00 ji1 / 55/0 E8 06/13/00 3133M9FE7 / / 2 3133M34N2 / i 3 3133M3DQ5 / 07/07/03 3133M4SW4 02/24/99 02/24/04 3133M7KE5 460 06/01/86 06/01/16 313400MC4 5341 12/10/85 12/10/15 . 313586UB3 07/09/98 07/09/03 31364FX22 07/15/99 07/15/04 31364G2R9 3831 5.8750 5.9500 Matured 07-02-01 1,000,000.00 Matured 07-02-01 Matured 07-02-01 6.5500 6.5900 Matured 07-27-01 1,000,000.00 Matured 07-27-01 Matured 07-27-01 6.0000 6.0800 495,435.00 500,000.00 . 501,955.00 501,875.00 5.4000 5.5500 Called 07-14-01 1,000,000.00 Called 07-14-01 Called 07-14-01 5.8750 6.0000 6.0000 6.0700 6.0050 6.0000 5.7550 8.2500 10.3500 5.9000 6.5300 04/20/92 12/31/99 See Note N/A 4.6300 10/19/89 12/31/99 173 N/A 4.6350 12/01/93 12/31/99 See Note N/A 4.6350 04/01/99 04/01/04 See Note N/A 3.5500 495,435.00 3,500,000.00 501,955.00 501,875. 5.9600 989,190.00 1,000,000.00 1,002,340.00 1,002,810.00 6.0500 . 989, 360.00 1,000,000.00 1,007,030.00 1,007,500.00 6.9792 980,460.00 1,000,000.00 1,024,060.00 1,020,780.00 6.2100 1,000,000.00 1,000,000.00 1,025,940.00 1,023,750.00 6.2000 1,000,000.00 1,000,000.00 1,032,500.00 1,026,410.00 6.2100 1,000,000.00 1,000,000.00 1,035,000.00 1,027,030.00 6.0700 1,000,000.00 1,000,000.00 1,001,250.00 1,002,340.00 6,959,010.00 7,000,000.00 7,128,120.00 7,110,620.00 7.6100 10,199,962.50 9,555,000.00 11,567,474.10 11,127,084.15 10,199,962.50 9,555,000.00 11,567,474.10 #REFI 8.1400 3,688,593.75 3,000,000.00 4,235,160.00 4,086,090.00 6.1600 Called 07-09-01 1,000,000.00 Called 07-09-01 Called 07-09-01 6.7500 2,007,000.00 2,000,000.00 2,049,380.00 2,045,000.00 5,695,593.75 6,000,000.00 6,284,540.00 6,131,090. 4.6300 3,380,764.18 3,380,764.18 3,380,764.18 3,380,764.18 4.6350 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 4.6350 139, 861.52 139, 861.52 139, 861.52 139, 861.52 3.7200 37,675.64 .37,675.64 37,675.64 37,675.64 City of West Covina Portfolio Details July 31, 2001 AVERAGE 7/31/2001 6/30/2001 INVESTMENT INVESTMENT ISSUER PURCHASE MATURITY DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET NUMBER TYPE DATE DATE MATURITY VALUE* VALUE* 5457 MTN NATIONSBANK CHARLOTTE NC 08/03/98 08/01/01 63858JEE5 5.8500 5.9700 1,000,000.00 1,000,000:00 1,000,000.00 1,001,480.00 5463 MTN MERRILL LYNCH & CO INC 01/14/99 12/10/01 59018SC85 6.1000 6.2200 1,015,060.00 1,000,000.00 1,009,130.00 1,010,340.00 5499 MTN ASSOC. CORP OF N.A. 06/16/00 09/30/02 045906KB9 6.7300 7.3293 987,540.00 1,000,000.00 1,028,940.00 1,028,490.00 5460 MTN MERRILL LYNCH & CO INC 10/05/98 02/12/03 590188HZ5 6.0000 6.2000 2,015,010.00 2,000,000.00 2,050,640.00 2,034,420.00 5462 MTN SALOMON SMITH'BARNEY HLDGS I 10/14/98 05/15/03 79549BCL9 6.2500 6.4900 1,000,950.00 1,000,000.00 1,029,220.00 1,020,280.00 5491 MTN. COMMERCIAL CREDIT COMPANY 04/24/00 08/01/04 201615DS7 6.5000 6.7500 972,370.00 1,000,000.00 1,039,310.00 1,023,430.00 5493 MTN GENERAL ELECTRIC CAPITAL CORP 06/15/00 02/15/05 36962GUM4 .2 7.1701 1,002,970.00 1,000,000.00 1,078,280.00 1,061,590.00 5494 MTN FORD MOTOR CREDIT CO 06/15/00 03/15/05 345397 7.6000 995,903.47 1,000,000.00 1,057,520.00 1,039,040.� 5495 MTN HEWLETT-PACKARD CO 06/15/00 06/15/05 7.1792 998,750.00 1,000,000.00 1,049,100.00 1,034,680. 4 9,988,553.47 10,000,000.00 10,342,140.00 #REFI STOCK ** SOUTHWEST WATER COMPANY 04/16/86 001-751- 4533110 N/A Sold 07-11-01 Sold 07-11-01 Sold 07-11-01 Sold 07-11-01 1551 TOTALS: 66,896,856.06 69,613,301.34 69,382,530.44 #REFI B-14 * MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK. Note: Average Maturity - Liquid, variable rate interest accounts including the Wells Fargo Sweep, LACIP and the Marquette Money Market were not included in calculation of average maturity . . because the City has no control over the term of underlying investments and funds can be withdrawn at any time. LAIF was included because excluding this sizeable balance skews the overall average. **.Southwest Water Company was sold in July 2001. CITY OF WEST COVINA STATEMENT OF TREASURER'S ACCOUNTABILITY NOVEMBER 30, 2001 TYPES OF DEPOSITS: OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING $ (44,094.10) * . ' 9,611,320.42 $ 9,220,079.31 $ 347,147.01 WELLS FARGO GENERAL AUTO & LIABILITY (21,178.06) * 25,740.85 27,516.52 (22,953.73) " WELLS FARGO WORKER'S COMPENSATION (40,009.61) * 77,731.51 87,065.12 (49,343.22) WELLS FARGO PAYROLL (32,014.41) * 3,047,659.59 3,095,293.02 (79,647.84) * WELLS FARGO BAIL/FINE - 1,910.00 910.00 1,000.00 WELLS FARGO CDBG DEFERRED LOAN PROGRAM 121,237.09 51.50 - 121,288.59 PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM 331,992.97 17,461.78 103,521.84 245,632.91 SUB -TOTAL $ 315,933.88 $ 12,781,875.65 $ 12,534,385.81 $ 563,423.72 0.888% OTHER INVESTMENTS: WELLS FARGO SWEEP $ 910,679.35 $ 2,925,977.39 $ 3,180,399.69 $ 656,257.05 1.034% ESCROW ACCOUNT 37,977.06 79.13 - 38,056.19 0.060% FEDERAL HOME LOAN BANK (FHLB) 4,969,620.00 - 989,360.00 3,980,460.00 6.271 % FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 5,695,593.75 - - 5,695,593.75 8.974% FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50. - - 10,199,962.50 16.070% CORPORATE MEDIUM TERM NOTES (MTN) 8,988,553.47 - - 8,988,553.47 14.162% LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) 30,000,000.00 - -. 30,000,000.00 47.266% LOCAL AGENCY INVESTMENT FUND - W.C.P.F.A. (LAIF) 141,435.69 - - 141,435.69 0.223% LOS ANGELES COUNTY POOL (LACIP) 4,198,019.42 1,008,555.26 2,000,000.00 3,206,574.68 5.052% SUB -TOTAL $ 65,142,041.24 $ 3,934,611.78 $ 6,169,759.69 $ 62,906,893.33 99.112% TOTAL $ 65,457,975.12 $ 16,716,487.43 $ 18,704,145.50 $ 63,470,317.05 100% *NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS . 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 May 1, 2001. 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 December 28, 200- EARNED INTEREST YIELD THIS PERIOD: 4.908% SIX-MONTH TREASURY BILL YIELD:" 1.88% REVIEWED BY: P EPA B/ Dennis Swink, City Controller An el . P terla, Departmental Able SUBM ED B ',. �� % 7 OVED BY: f Artie elds, ct ng Finance or arian V. S thson, City Treasurer • • City of West Covina Portfolio Details November 30, 2001 AVERAGE 11/30/2001 10/31/2001 INVESTMENT INVESTMENT ISSUER PURCHASE MATURITY DAYS TO CUSIP RATE I YIELD I COST I PAR I MARKET I MARKET NUMBER TYPE DATE DATE MATURITY VALUE' VALUE" 5489 FHLB U.S. GOVERNMENT AGENCY 5496 FHLB U.S. GOVERNMENT AGENCY 5444 FHLB U.S. GOVERNMENT AGENCY 5445 FHLB U.S. GOVERNMENT AGENCY 5450 FHLB _ U.S. GOVERNMENT AGENCY 4770 FHLMC U.S. GOVERNMENT AGENCY 2454 FNMA U.S. GOVERNMENT AGENCY 5475 FNMA - U.S. GOVERNMENT AGENCY 4693 LACIP LOS ANGELES COUNTY TREASURER" 3914' LAIF STATE OF CALIFORNIA 5273 LAIF STATE OF CALIFORNIA 5476 MNYMKT MARQUETTE NATIONAL BANK 03/08/00 11/15/01 3133MABE8 6.0000 Matured 11/15/01 Matured 11/15/01 Matured 11/15/01 Matured 11/15/01 06/13/00 08/15/02 3133M9FE7 6.0000 5.8500 980,460.00 1,000,000.00 1,026,410.00 1,031,560.00 04/22/98 10/22/02 3133M34N2 6.0700 5.8700 1,000,000.00 1,000,000.00 1,033,590.00 1,035,620.00 04/23/98 .04/23/03 3133M3DQ5 6.0050 5.7400 1,000,000.00 1,000,000.00 1,045,940.00 1,049,220.00 07/07/98 07/07/03 3133M4SW4 6.0000 5.7200 1,000,000.00 1,000,000.00 1,049,690.00 1,054,220_ 415 3,980,460.00 4,000,000.00 4,155,630.00 4,170,620. 06/01/86 06/01/16 313400MC4 8.2500. 6.7500 10,199,962.50 9,555,000.00 11,682,516.30 12,291,647.55 5221 10,199,962.50 9,555,000.00 11,682,516.30 12,291,647.55 12/10/85 12/10/15 313586UB3 10.3500 7.2800 3,688,593.75 3,000,000.00 4,265,610.00 4,476,570.00 07/15/99 07/15/04 31364G2R9 6.5300 6.3600 2,007,000.00 .2,000,000.00 2,054,060.00 2,058,740.00 3716 5,695,593.75 5,000,000.00 6,319,670.00 6,535,310.00 04/20/92 12/31/99 See Note N/A 3.8200 3.8200 3,206,574.68 3,206,574.68 3,206,574.68 3,206,574.68 10/19/89 12/31/99, 185 N/A 3.5260 15260 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 12/01/93 12/31/99 See Note N/A 3.5260 3.5260 141,435.69 141,435.69 141,435.69 141,435.69 04/01/99 04/01/04 See Note . N/A 2.5600 2.5600 38,056.19 38,056.19 ,38,056.19 38,056.19 City of West Covina Portfolio Details November 30, 2001 AVERAGE 11 /30/2001 10/31 /2001 INVESTMENT INVESTMENT ISSUER PURCHASE MATURITY DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET NUMBER TYPE DATE DATE MATURITY VALUE` VALUE' 5463 MTN MERRILL LYNCH & CO INC 01/14/99 12/10/01 59018SC85 6.1000 6.1000 1,01060.00 1,000,000.00 1,000,540.00 1,003,610.00 5499 MTN ASSOC. CORP OF N.A. 06/16/00 09/30/02 045906KB9 6.7300 6.5200 987,540.00 1,000,000.00 1,031,570.00 1,034,790.00 5460 MTN ' MERRILL LYNCH & CO INC 10/05/98 02/12/03 590188HZ5 6.0000 5.7900 2,015,010.00 2,000,000.00 2,071,780.00 2,081,620.00 5462 MTN SALOMON SMITH BARNEY HLDGS 1 10/14/98 05/15/03 79549BCL9 6.2500 5.9900 1,000,950.00 1,000,000.00 1,043,710.00 1,048,220.00 5491 MTN COMMERCIAL CREDIT COMPANY 04/24/00 08/01/04 201615DS7 6.5000 6.1400 972,370.00 1,000,000.00 . 1,057,980.06 1,070,510.00 5493- MTN GENERAL ELECTRIC CAPITAL CORP 06/15/00 02/15/05 36962GUM4 7.2500 6.6200 1,002,970.00 1,000,000.00 1,094,670.00 1,106,590.00, 5494 MTN _ FORD MOTOR CREDIT CO 06/15/00 03/15/05 345397SQ7 7.5000 7.2000 995,903.47 1,000,000.00 1,042,030.00 1,039,680.M 5495 MTN HEWLETT-PACKARD CO 06/15/00 06/15/05 428236AD5 7.1500 6.7600 998,750.00 1,000,000.00 1,057,740.00 1,075,250. 705 8,988,553.47 9,000,000.00 9,400,020.00 9,460,270.00 s 1598 f TOTALS: 62,250,636.28 60,941,066.56 64,943,902.86 65,843,914.11 "MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK. Note: Average Maturity - Liquid, variable rate interest accounts including the Wells Fargo Sweep, LACIP and the Marquette Money Market were not Included in calculation of average maturity because the City has no control over the term of underlying investments and funds can be withdrawn at any time. LAIF was included because excluding this sizeable balance skews the overall average.