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01-07-2003 - November 2002 Treasurer's ReportCity of West Covina Memorandum AGENDA Item No. B-3 Date January 7, :2003 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman, Director Finance Department SUBJECT: NOVEMBER 2002 TREASURER'S REPORT RECOMMENDATION: It is recommended the City Council receive and file this report. DISCUSSION: Section 53646�of the Government Code requires a city's treasurer or chief fiscal officer to submit quarterly reports to their legislative body. This reportis 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 effect, 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 2002 report was the last report submitted to the State. ' Treasurer's reports are submitted to the West Covina City Council monthly. The November Report shows the City's portfolio decreased from $62,114,246.52 on October 31, 2002 to $59,178,927.26 on November 30, 2002.. 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 1754 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 three percent of the portfolio. Approximately forty four 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 three percent of the portfolio has an average maturity of less than two years. An explanation of the Treasurer's report features has been attached. Prepared by: Denn' Swink Controller Reviewed App ove by: Thomas Bachman Finance Director 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 -I 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.) • B-6 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 lists 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 J61y 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) 9,9 - - 9,988,553.47 14.453% LOCAL. AGENCY INVESTMENT FUND - CITY (LAIF) 372,959.35 364,609.87 30,000'000.00 43.410°/a 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 $ 25,193,277.92 $ 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: Dennis Swink, City Controller SUBMITTED BY: Artie Fields, Acting Finance Director PREPARED BY: Angel F. Patena, Departmental Aide APPROVED BY: Marian V. Smithson, City Treasurer 0 • City of West Covina Portfolio Details July 31, 2001 B-1 B-2 B-3 B-4 B-5 B-6 B-7 B-8 8-9 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 5486 FFCB 5488 FFCB 5465 FFCB 5487 5489 5496 5444 5445 5450 5473 4770 2454 5451 5475 4693 3914 5273 5476 U.S. GOVERNMENT AGENCY U.S. GOVERNMENT AGENCY U.S. GOVERNMENT AGENCY U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY FHLB U.S. GOVERNMENT AGENCY 03/02/00 07/02/01 31331 HZF7 5.8750 03/03/00 07/27/01 31331 HD46 6.5500 03/03/00 10/01/01 3133IH635 6.0000 01/14/99 01/14/02 31331RT96 5.4000 61 03/08/00 09/17/01 0 5.8750 03/08/00 11/15/01M E8 6.0000 06/13/00 3133M9FE7 6.0000 05/ / 2 3133M34N2 6.0700 / / 3 p 3133M3DQ5 6.0050 / 07/07/03 3133M4SW4 6.0000 02/24/99 02/24/04 3133M7KE5 5.7550 460 FHLMC U.S. GOVERNMENT AGENCY 06/01/86 06/01/16 313400MC4 8.2500 5341 FNMA U.S. GOVERNMENT AGENCY 12/10/85 .12/10/.15 313586UB3 10.3500 FNMA U.S. GOVERNMENT AGENCY 07/09/98 07/09/03 -31364FX22 5.9000 FNMA U.S. GOVERNMENT AGENCY 07/15/99 07/15/04 31364G2R9 6.5300 3831 LACIP LOS ANGELES COUNTY TREASURER 04/20/92 12/31/99 See Note N/A 4.6300 LAIF STATE OF CALIFORNIA 10/19/89 12/31/99 173 N/A 4.6350 LAIF STATE OF CALIFORNIA 12/01/93 12/31/99 See Note N/A 4.6350 MNYMKT MARQUETTE NATIONAL BANK 04/01/99 04/01/04 See Note N/A 3.5500. 5.9500 6.5900 6.0800 5.5500 Matured 07-02-01 Matured 07-27-01 495,435.00 Called 07-14-01 495,435.00 1,000,000.00 1,000,000.00 500,000.00 1,000,000.00 3,500,000.00 Matured 07-02-04 Matured 07-27-01 501,955.00 Called 07-14-01 501,955.00 Matured 07-02-01 - Matured 07-27-01 501,875.00 Called 07-14-01 501,875.00 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 11,127,084.15 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 6,131,090.00 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 INVESTMENT NUMBER INVESTMENT TYPE ISSUER PURCHASE DATE MATURITY DATE AVERAGE DAYS TO MATURITY CUSIP RATE I YIELD I I COST I PAR I 7/31 /2001 MARKET I VALUE* 6/30/2001 MARKET I 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 1 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 1,039,040.00 5495 MTN HEWLETT-PACKARD CO 06/15/00 06/15/05 1 7.1792 998,750.00 1,000,000.00 1,049,100.00 1,034,680.00 4 9,988,553.47 10,000,000.00 10,342,140.00 #REF! STOCK ** SOUTHWEST WATER COMPANY 04/16/86 001-751-84533110 N/A Sold 07-11-01 Sold 07-11-01 Sold 07-11-01 Sold 07-11-01 05 1551 TOTALS: 66,896,856.06 69,613,301.34 69,382,530.44 #REF! 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. 0 CITY OF WEST COVINA STATEMENT OF TREASURER'S ACCOUNTABILITY NOVEMBER 30, 2002 TYPES OF DEPOSITS: OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING $ 1,031,079.60 $ 6,909,968A4 $ 7,201,402.66 $ 739,645.38 PACIFIC WESTERN NAT BANK GEN AUTO 8, LIABILITY 12,601.33 37,856.68 57,562.60 (7,104.59) * WELLS FARGO WORKER'S COMPENSATION (20,488.65) * 20,488.66 - - PACIFIC WESTERN NAT BANK WORKER'S COMPENSATION 12,562.27 170,016.94 82,962.38 99,616.83 WELLS FARGO PAYROLL (120,205.08) * 2,186,791.88 2,313,380.08 (246,793.28) * WELLS FARGO BAIUFINE 5,300.00 - 5,300.00 - WELLS FARGO CDBG DEFERRED LOAN PROGRAM 121,487.80 - - 121,487.80 PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM 45,122.95. - 44,353.82 769.13 PACIFIC WESTERN NAT BANK CITY COUNCIL DEBIT CARDS 18,551.03 - 1,821.89 16,729.14 SUB -TOTAL $ 1,106,011.25 $ 9,325,122.59 $ 9,706,783.43 $ 724,350.41 1.224% OTHER INVESTMENTS: WELLS FARGO SWEEP $ 634,713.17 $ 2,848,637.17 $ 2,824,836.14 $ 658,514.20 1.113% FEDERAL HOME LOAN BANK (FHLB) 2,000,000.00 - - 2,000,000.00 3.380% FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 3,688,593.75 - 3,688,593.75 6.233% FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50 - - 10,199,962.50 17.236% CORPORATE MEDIUM TERM NOTES (MTN) 6,985,953.47 - - 6,985,953.47 11.805% LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) 28,436,150.46 - 2,600,000.00 25,836,150.46 43.658% LOCAL AGENCY INVESTMENT FUND - W.C.P.F.A. (LAIF) 145,668.26 - - 145,668.26 0.246% LOS ANGELES COUNTY POOL (LACIP) 8,917,193.66 22,540.55 - 8,939,734.21 15.106% SUB -TOTAL $ 61,008,235.27 $ 2,871,177.72 $ 5,424,836.14 $ 58,454,576.85 98.776% TOTAL $ 62,114,246.52 $ 12,196,300.31 $ 15,131,619.57 $ 59,178,927.26 100% *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 February 19, 2002. 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 20, 2002. EARNED INTEREST YIELD THIS PERIOD: 4.269% SIX-MONTH TREASURY BILL YIELD: 1.27% =D BY: '2� Dennis Swink, City Controller SUBMITTED BY: Thomas Bachman, Finance Director PRE Anp6l F. Patera, Departmental Aide /VPRQED BY: ` ^ i . Smit"son, City Treasurer } City of West Covina Portfolio Details November 30, 2002 AVERAGE 11 /30/2002 10/31/2002 INVESTMENT INVESTMENT I ISSUER I PURCHASE I MATURITY I DAYS TO I CUSIP 1 RATE YIELD COST I PAR I MARKET I MARKET I NUMBER TYPE DATE DATE MATURITY VALUE' VALUE' 5445 FHLB U.S. GOVERNMENT AGENCY 04/23/98 04/23/03 3133M3DQ5 6.005 6.005 1,000,000.00 1,000,000.00 1,018,130.00 1,021,250.00 5450 FHLB U.S. GOVERNMENT AGENCY 07/07/98 07/07/03 3133M4SW4 6.000 6.000 1,000,000.00 1,000,000,00 1,027,190.00 1,030,000.00 180 2,000,000.00 2,000,000.00 2,045,320.00 2,051,250.00 4770 FHLMC U.S. GOVERNMENT AGENCY 06/01/86 06/01/16 313400MC4 8.250 7,728 10,199,962.50 9,555,000.00 12,531,955.80 12.752.962.95 4861 10,199,962.50 9,555,000.00 12,531,955.80 12,752,962.95 2454 FNMA U.S. GOVERNMENT AGENCY 12/10/85 12/10/15 313586UB3 10.350 8.418 3,688,593.75 3,000,000-00 4,514,070,00 4.596.570.00 4690 3,688,593.75 — 3,000,000.00 4,514,070.00 4,596,570.00 4693 LACIP LOS ANGELES COUNTY TREASURER 04/20/92 See Note N/A 2.310 2.310 8,939,734.21 8,939,734.21 8,939,734.21 8,939,734.21 3914 LAIF STATE OF CALIFORNIA 10/19/89 211 N/A 2.301 2.301 25,836,150.46 25,836,150.46 25,836,150.46 25,836,150.46 5273 LAIF STATE OF CALIFORNIA 12/01/93 See Note N/A 2.301 2.301 145,668.26 145,668.26 145,668.26 145.668.26 5460 MTN MERRILL LYNCH & CO INC 10/05/98 02/12/03 590188HZ4 6.000 5.955 2,015,010.00 2,000,000.00 2,016,180.00 2,020,620.00 5462 MTN SALOMON SMITH BARNEY HLDGS 1 10/14/98 05/15/03 79549BCL9 6.250 6.244 1,000,950.00 1,000,000.00 1,020,420.00 1,022,960.00 5491 MTN COMMERCIAL CREDIT COMPANY 04/24/00 08/01/04 201615DS7 6.500 6.685 972,370.00 1,000,000.00 1,060,050.00 1,066,090.00 5493 MTN GENERAL ELECTRIC CAPITAL CORP 06/15/00 02/15/05 36962GUM4 7.250 7.229 1,002,970.00 1,000,000.00 1,093,930.00 1,100,030.00 5494 MTN FORD MOTOR CREDIT CO 06/15/00 03/15/05 345397SQ7 7.500 7.531 995,903.47 1,000,000.00 1,017,370.00 983,680.00 5495 MTN HEWLETT-PACKARD CO 06/15/00 06/15/05 428236AD5 7.150 7.159 998,750.00 1,000,000.00 1,068.800,00 1,069,800.00 500 6,985,953.47 7,000,000.00 7,276,750.00 7,263,180.00 1754 TOTALS: 57:796,062.65 56,476,552.93 61,289,648.73 61,585,515.88 e MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK. Note: Average Maturity - Liquid, variable rate interest accounts including the Wells Fargo Sweep and LAC1P 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 anytime. LAIF was included because excluding this sizeable balance skews the overall average.