01-20-2004 - November 2003 Treasurer's Report9 i
City of West 'Covina
Memorandum
AGENDA
Item No. B-5
Date January 20, 2004
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Director
Finance Department
SUBJECT: NOVEMBER 2003 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 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 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 2003 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 $53,513,560.42 on October 31 2003 to
$52,119,630.51 on November 30, 2003. 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 1567 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 six 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
twenty four percent of the portfolio has an average maturity of less than two years. An
explanation of the Treasurer's report features has been attached.
<�.,......._. i,
Prepared by: Dennis Swink Reviewe Approve by: Thomas Bachman
Controller 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-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.)
• B-6.shows the average days to maturity for each class of investment.
• B-7 lists the CUSIR 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 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) 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%
LOCAL AGENCY INVESTMENT FUND - W.C.P.F.A. (LAIF) P55.
3 1,826.66 - 139,861.52 0.202%
LOS ANGELES COUNTY POOL (LACIP) P 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: PREPARED BY:
Dennis Swink, City Controller
SUBMITTED BY:
Artie Fields, Acting Finance Director
Angel F. Patena, Departmental Aide
APPROVED BY:
Marian V. Smithson, City Treasurer
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
NOVEMBER 30, 2003
TYPES OF DEPOSITS: _ OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING
$
824,334.98
$ 6,029,116.27 $
6,049,250.47
$
804,200.78
WELLS FARGO BANK GEN AUTO & LIABILITY
2,694.00
112,101.18
98,278.68
16,516.50
PACIFIC WESTERN NAT BANK GEN AUTO & LIABILITY
50,661.04
27.26
-
50,688.30
WELLS FARGO BANK WORKER'S COMPENSATION
(164.58) *
176,045.53
96,777.41
79.103.54
PACIFIC WESTERN NAT BANK WORKER'S COMPENSATION
103,587.90
52.93
-
103,640.83
WELLS FARGO PAYROLL
(96,723.94) *
2,445,087.21
2,816,287.94
(467,924.67)
WELLS FARGO CDBG DEFERRED LOAN PROGRAM
121,890.54
-
-
121,890.54
PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM
3,845.29
75,832.00
29,750.00
49,927.29
PACIFIC WESTERN NAT BANK CITY COUNCIL DEBIT CARDS
15,437.88
-
137.28
15,300.60
SUB -TOTAL
$
1,025,563.11
$ 8,838,262.38 $
9,090,481.78
$
773,343.71
1.484%
•
OTHER INVESTMENTS:
WELLS FARGO SWEEP
$
300,860.25
$ 1,762,063.17 $
1,419,790.78
$
643,132.64
1.234%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
3,688,593.75
3,688,593.75
7.077%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
10,199,962.50
-
-
10,199,962.50
19.570%
CORPORATE MEDIUM TERM NOTES (MTN)
3,969,993.47
-
3,969,993.47
7.617%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)
26,740,791.77
-
500,000.00
26,240,791.77
50.347%
LOS ANGELES COUNTY POOL (LACIP)
7,587,795.57
16,017.10
1,000,000.00
6,603,812.67
12.670%
SUB -TOTAL
$
52,487,997.31
$ 1,778,080.27 $
2,919,790.78
$
51,346,286.80
98.516%
TOTAL
$
53,513,560.42
$ 10,616,342.65 $
12,010,272.56
$
52,119,630.51
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
18, 2003.
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
31, 2003.
EARNED INTEREST YIELD THIS PERIOD: 3.683%
SIX-MONTH TREASURY BILL YIELD:
1.02%
.
REVIEW BY: A
PREP
Dennis Swink, City Controller
Ang F. Fiatefia, Revenue Services Supervisor
SUBMITTED BY:
JJ
APPROV D EfY:
Thomas Bacilman, Fina ce Director
Marian . Smithson, City Treasurer
7
City of West Covina Portfolio Details
November 30, 2003
AVERAGE
11/30/2003
10/ 11/2503
INVESTMENT
INVESTMENT
ISSUER
PURCHASE
MATURITY
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE
VALUE'
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
12,520,012.05
12,549,919.20
4501
10,199,962.50
9,555,000.00
12,520,012.05
12,549,919.20
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
4,475,640.00
4,491,570.00
4330
3,688,593.75
3,000,000.00
4,475,640.00
4,491,570.00
4693
LACIP
LOS ANGELES COUNTY TREASURER
04/20/92
289
N/A
1.410
1.410
6,603,812.67
6,603,812.67
6,603,812.67
6,603,812.67
•
3914
LAIF
STATE OF CALIFORNIA
10/19/89
202
N/A
1.572
1.572
26,240,791.77
26,240,791.77
26,240,791.77
26,240,791.77
5491
MTN
COMMERCIAL CREDIT COMPANY
04/24/00
08/01/04
201615DS7
6.500
6.685
972,370.00
1,000,000.00
1,033,100.00
1,036,940.00
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
1,061,530.00
1,067,620.00
5494
MTN
FORD MOTOR CREDIT CO
06/15/00
03/15/05
345397SQ7
7.500
7.531
995,903.47
1,000,000.00
1,052,960.00
1,050,620.00
5495
MTN
HEWLETT-PACKARD CO
06/15/00
06/15/05
428236AD5
7.150
7.159
998,750.00
1,000,000.00
1,074,690.00
1,079;360.00
426
3,969,993.47
4,000,000.00
4,222,280.00
4,234,540.00
1567
TOTALS:
50,703,154.16
49,399,604.44
54,062,536.49
54,120,633.64
*MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK.
Note: The Wells Fargo Sweep account was not Included In the calculation of average maturity.
i
City of West Covina Portfolio Details
July 31, 2001
INVESTMENT
NUMBER
INVESTMENT
TYPE
ISSUER
PURCHASE
DATE
MATURITY
DATE
AVERAGE
DAYS TO
MATURITY
CUSIP
RATE
YIELD
COST
PAR
7/31/2001
MARKET
VALUE*
6/30/2001
MARKET
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
972,379.00
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
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
3453
1.2jift7.1701
7.6000
995,903.47
1,000,000.00
1,057,520.00
1,039,040.0(L
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.
4
"001-751-P84533110
9,988,553.47
10,000,000.00
10,342,140.00
#REF!
STOCK "'
SOUTHWEST WATER COMPANY
04/16/86
5
0
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
#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.
City of West Covina Portfolio Details
July 31, 2001
B-1 13-2 B-3 13-4 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
COSTT
PAR
MARKET
1
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE*
VALUE'
5485 FFCB U.S. GOVERNMENT AGENCY 03/02/00 07/02/01 31331HZF7 5.8750
5486 FFCB U.S. GOVERNMENT AGENCY 03/03/00 07/27/01 31331HD46 6.5500
5488 FFCB U.S. GOVERNMENT AGENCY 03/03/00 10/01/01 31331HG35 6.0000
5465 FFCB U.S; GOVERNMENT AGENCY 01/14/99 01/14/02 31331RT96 5.4000
61
5487 FHLB U.S. GOVERNMENT AGENCY 03/08/00 09/17/01 0 5.8750
5489 FHLB U.S. GOVERNMENT AGENCY 03/08/00 ji/15/0 E8 6.0000
5496 FHLB U.S. GOVERNMENT AGENCY 06/13/00 3133M9FE7 6.0000
5444 FHLB U.S. GOVERNMENT AGENCY ! 2 3133M34N2 6.0700
5445 FHLB U.S. GOVERNMENT AGENCY / 3 3133M3DQ5 6.0050
5450 FHLB U.S. GOVERNMENT AGENCY / 07/07/03 3133M4SW4 6.0000
5473 FHLB U.S. GOVERNMENT AGENCY 02/24/99 02/24/04 3133M7KE5 5.7550
460
4770 FHLMC U.S. GOVERNMENT AGENCY 06/01/86 06/01/16 313400MC4 8.2500
5341
2454 FNMA U.S. GOVERNMENT AGENCY 12/10/85 12/10/15 313586UB3 10.3500
5451 FNMA U.S. GOVERNMENT AGENCY 07/09/98 07/09/03 31364FX22 5.9000
5475 FNMA U.S. GOVERNMENT AGENCY 07/15/99 07/15/04 31364G2R9 6.5300
4693
3914
5273
5476
LACIP -
LOS ANGELES COUNTY TREASURER
LAIF
STATE OF CALIFORNIA
LAIF
STATE OF CALIFORNIA
MNYMKT
MARQUETTE NATIONAL BANK
3831
04/20/92
12/31/99
See Note
N/A
10/19/89
12/31/99
173
N/A
12/01 /93
12/31/99
See Note
N/A
04/01/99
04/01/04
See Note
N/A
5.9500
Matured 07-02-01
1,000,000.00
Matured 07-02-01
Matured 07-02-01
6.5900
Matured 07-27-01
1,000,000.00
Matured 07-27-01
Matured 07-27-01
6.0800
495,435.00
500,000.00
. 501,955.00
501,875.00
5.5500
Called 07-14-01
1,000,000.00
Called 07-14-01
Called 07-14-01
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
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
6,131,090.
5,695,593.75
6,000,000.00
6,284,540.00
4.6300
4.6300
3,380,764.18
3,380,764.18
3,380,764.18
3,380,764.18
4.6350
4.6350
30,000,000.00
30,000,000.00
30,000,000.00
30,000,000.00
4.6350
4.6350
139,861.52
139,861.52
139,861.52
139,861.52
3.5500
3.7200
37,675.64
37,675.64
37,675.64
37,675.64