01-18-2005 - November 2004 Treasurer's ReportCity of West Covina
Memorandum
AGENDA
Item No. e -
Date January 18, 2005
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Director
Finance Department
SUBJECT: NOVEMBER 2004 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
most recent report submitted to the State was for June 2004.
The Finance Department exceeds these requirements by submitting Treasurer's reports to the
West Covina City Council each month. The November Report shows the City's portfolio
increased from $42,643,143..36 on October 31, 2004 to $42,830,103.34 on November 30,
2004. Beginning with the May 2001 report, average maturity informatiori-has been provided
for investments in the City's portfolio. The overall average maturity of the portfolio is 1710
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 thirty two
percent of the portfolio. Approximately forty one 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 seven 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: Dennis Swink
Controller
Reloe
viewed[Approved by: Thomas ac aii
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 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 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 8, 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) 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: 6.565% A-10 SIX-MONTH TREASURY BILL YIELD: 3.45%
REVIEWED BY: PREPARED BY:
Dennis Swink, City Controller Angel F. Pateria, Departmental Aide
SUBMITTED BY: APPROVED BY:
Artie Fields, Acting Finance Director Marian V. Smithson, City Treasurer
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 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 03/02/00 07/02/01 31331HZF7 5.8750 5.9500. Matured 07-02-01 1,000,000.00 Matured 07-02-01 Matured 07-02-01
5486 FFCB U.S. GOVERNMENT AGENCY 03/03/00 07/27/01 31331HD46 6.5500 6.5900 Matured 07-27-01 1,000,000.00 Matured 07-27-01 Matured 07-27-01
5488 FFCB U.S. GOVERNMENT AGENCY 03/03/00 10/01/01 31331HG35 6.0000 6.0800 495,435.00 500,000.00 501,955.00 501,875.00
5465 FFCB U.S. GOVERNMENT AGENCY 01/14/99 01/14/02 31331RT96 5.4000 5.5500 Called 07-14-01 1,000,000.00 Called 07-14-01 Called 07-14-01
61 495,435.00 3,500,000.00 501,955.00 501,875.00
is 5487 FHLB U.S. GOVERNMENT AGENCY 03/08/00 09/17/01 0 5.8750 5.9600 989,190.00 1,000,000.00 1,002,340.00 1,002,810.00
5489 FHLB U.S. GOVERNMENT AGENCY 03/08/00 11/15/0 &E8 6.0000 6.0500 989,360.00 1,000,000.00 _ 1,007,030.00 1,007,500.00
5496 FHLB U.S. GOVERNMENT AGENCY 06/13/00 3133M9FE7 6.0000 6.9792 980,460.00 1,000,000.00 1,024,060.00 1,020,780.00
5444 FHLB U.S. GOVERNMENT AGENCY / / 2 3133M34N2 6.0700 6.2100 1,000,000.00 1,000,000.00 1,025,940.00 1,023,750.00
5445 FHLB U.S. GOVERNMENTAGENCY / / 3 3133M3DQ5 6.0050 6.2000 1,000,000.00 1,000,000.00 1,032,500.00 1,026,410.00
5450 FHLB U.S. GOVERNMENT AGENCY / 07/07/03 3133M4SW4 6.0000 6.2100 1,000,000.00 1,000,000.00 1,035,000.00 1,027,030.00
5473 FHLB U.S. GOVERNMENT AGENCY 02/24/99 02/24/04 3133WKE5 5.7550 6.0700 1,000,000.00 1,000,000.00 1,001,250.00 1,002,340.00
460 6,959,010.00 7,000,000.00 7,128,120.00 7,110,620.00
4770 FHLMC U.S. GOVERNMENT AGENCY 06/01/86 06/01/16 313400MC4 8.2500 7.6100 10,199,962.50 9,555,000.00 11,567,474.10 11,127,084,15
5341 10,199,962.50 9,555,000.00 11,567,474.10 11,127,084.15
2454 FNMA } U.S. GOVERNMENT AGENCY 12/10/85 12/10/15 3135861-163 10.3500 8.1400 3,688,593.75 3,000,000.00 4,235,160.00 4,086,090.00
5451 FNMA U.S. GOVERNMENT AGENCY 07/09/98 07/09/03 31364FX22 5.9000 6.1600 Called 07-09-01 1,000,000.00 Called 07-09-01 Called 07-09-01
5475 FNMA U.S. GOVERNMENT AGENCY 07/15/99 07/15/04 31364G2R9 6.5300 6.7500 2,007,000.00 2,000,000.00 2,049,380.00 2,045,000.00
3831 5,695,593.75 6,000,000.00 6,284,540.00 6,131,090.00
• 4693 LACIP LOS ANGELES COUNTY TREASURER 04/20/92 12/31/99 See Note N/A 4.6300 4.6300 3,380,764.18 3,380,764.18 3,380,764.18 3,380,764.18
3914 LAIF STATE OF CALIFORNIA 10/19/89 12/31/99 173 N/A 4.6350 4.6350 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00
5273 LAIF STATE OF CALIFORNIA 12/01/93 12/31/99 See Note N/A 4.6350 4.6350 139,861.52 139,861.52. 139,861.52 139,861.52
5476 MNYMKT MARQUETTE NATIONAL BANK 04/01/99 04/01/04 See Note -N/A 3.5500 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
I
ISSUER
PURCHASE
MATURITY
I
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
MARKET
I :]
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE*
VALUE*
5457
MTN
NATIONSBANK CHARLOTTE NC
08/03/98
5463
MTN
MERRILL LYNCH & CO INC
01/14/99
5499
MTN
ASSOC. CORP OF N.A.
06/16/00
5460
MTN
MERRILL LYNCH & CO INC
10/05/98
5462
MTN
SALOMON SMITH BARNEY HLDGS 1
10/14/98
5491
MTN
COMMERCIAL CREDIT COMPANY
04/24/00
5493
MTN
GENERAL ELECTRIC CAPITAL CORP
06/15/00
5494
MTN
FORD MOTOR CREDIT CO
06/15/00
• 5495
MTN
HEWLETT-PACKARD CO
06/15/00
B-14
•
STOCK ** SOUTHWEST WATER COMPANY
* MARKET VALUES HAVE BEEN PROVIDED BY UNION BANK.
08/01/01
63858JEE5
5.8500
5.9700
12/10/01
59018SC85
6.1000
6.2200
09/30/02
045906KB9
6.7300
7.3293
02/12/03
590188HZ5
6.0000
6.2000
05/15/03
79549BCL9
6.2500
6.4900
08/01/04
201615DS7
6.5000
6.7500
02/15/05
36962GUM4
03/15/05
345397
1.07.1701
7.6000
06/15/05
4
.7.1792
04/16/86 aVC01-751- 4533110 N/A
1551 TOTALS:
1,000, 000.00
1,000, 000.00
1,000,000.00
1,001,480.00
1,015,060.00
1,000,000.00
1,009,130.00
1,010,340.00
987, 540.00
1,000,000.00
1,028,940.00
1,028,490.00
2,015,010.00
2,000,000.00
2,050,640.00
2,034,420.00
1,000,950.00
1,000,000.00
1,029,220.00
1,020,280.00
972,370.00
1,000,000.00
1,039, 310.00
1,023,430.00
1,002,970.00
1,000,000.00
1,078,280.00
1,061, 590.00
995,903.47
1,000,000.00
1,057,520.00
1,039,040.00
998, 750.00
1,000,000.00
1,049,100.00
1,034,680.00
9,988,553.47
10,000,000.00
10,342,140.00
#REF!
Sold 07-11-01 Sold 07-11-01 Sold 07-11-01 Sold 07-11-01
66,896,856.06 69,613,301.34 69,382,530.44 #REF!
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, 2004
•
TYPES OF DEPOSITS: OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING
$
426,404.34
$
12,876,889.45
$
12,014,126.74
$
1,289,167.05
WELLS FARGO BANK GEN AUTO & LIABILITY
(0.00)
6,121.50
10,705.72
(4,584.22) *
WELLS FARGO BANK WORKER'S COMPENSATION
99.64
63,153.79
73,336.94
(10,083.51)
WELLS FARGO PAYROLL
(256,636.89) *
3,473,011.58
3,284,871.42
(68,496.73) *
WELLS FARGO CDBG DEFERRED LOAN PROGRAM
122,025.90
10.34
-
122,036.24
PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM
29,045.41
23,459.93
32,649.93
19,855.41
PACIFIC WESTERN NAT BANK CITY COUNCIL DEBIT CARDS
18,607.55
-
298.75
18,308.80
SUB -TOTAL
$
339,545.95
$
16,442,646.59
$
15,415,989.50
$
1,366,203.04
3.190%
OTHER INVESTMENTS:
WELLS FARGO SWEEP
$
158,971.12
$
4,754,908.71
$
4,348,371.42
$
565,508.41
1.320%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
3,688,593.75 .
1,000,000.00
-
4,688,593.75 **
10.947%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC).
10,199,962.50
-
-
10,199,962.50 **
23.815%
FEDERAL HOME LOAN BANKS (FHLB)
1,000,000.00
1,000,000.00
-
2,000,000.00
4.670%
CORPORATE MEDIUM TERM NOTES (MTN)
2,997,623.47
-
2,997,623.47
6.999%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)
21,095,446.45
1,250,000.00
4,500,000.00
17,845,446.45
41.666%
LOS ANGELES COUNTY POOL (LACIP)
3,163,000.12
3,765.60
3,166,765.72
7.394%
SUB -TOTAL
$
42,303,597.41
$
8,008,674.31
$
8,848,371.42
$
41,463,900.30
96.810%
TOTAL
$
42,643,143.36
$
24,451,320.90
$
24,264,360.92
$
42,830,103.34
100%
*NEGATIVE BALANCE REFLECTS OUTSTANDING CHECKS
** 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 February 17, 2004.
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 29, 2004.
EARNED INTEREST YIELD THIS PERIOD: 4.423% SIX-MONTH TREASURY BILL YIELD: 2.270%
DBY:
Dennis Swink, City Controller
SUBMITTE BY:
Thomas achm finance Director
PREPARED 13
Angel F. Pat a, Revenue Services Supervisor
AFOR VE Y:
!GGl
Marian V. Smithso , City Treasurer
City of West Covina Portfolio Details
November 30, 2004
3
AVERAGE
PAR
11/30/2004
10/31/2004
INVESTMENT
INVESTMENT
ISSUER
PURCHASE
MATURITY
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE'
VALUE`
04-03
FHLB
U.S. GOVERNMENT AGENCY
11/30/04
05/30/07
3133X9EV8
3.180
04-01
FHLB
U.S. GOVERNMENT AGENCY
09/08/04
12/08/06
3133XBBR2
3.060
814
86-01
" FHLMC
U.S. GOVERNMENT AGENCY
06/01/86
06/01/16
313400MC4
8.250
4141
04-02
FNMA
U.S. GOVERNMENT AGENCY
11/22/04
11/22/06
31359MVVRO
3.000
85-01
" FNMA
U.S. GOVERNMENT AGENCY
12/10/85
12/10/15
313586UB3
10.350
3360
92-01
LACIP
LOS ANGELES COUNTY TREASURER—
04/20/92
212
N/A
1.880
89-01
LAIF
STATE OF CALIFORNIA
10/19/89
191
N/A
2.003
00-01
MTN
GENERAL ELECTRIC CAPITAL CORP
06/15/00
02/01/05
36962GUM4
7.250
00-02
MTN
FORD MOTOR CREDIT CO
06/15/00
03/15/05
345397SQ7
7.500
00-03
MTN
HEWLETT-PACKARD CO
06/15/00
06/15/05
428236AD5
7.150
121
1710 TOTALS:
"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, October 2004 LACIP Weighted Average Days to Maturity was used due to the unavailability of November figures as of the writing of this report.
Note: The Wells Fargo Sweep account was not included in the calculation of average maturity.
3,180
1,000,000.00
1,000,000.00
995,000.00
3.060
1,000,000.00
1,000,000.00
996,560,00
1,001,560.00
2,000,000.00
2,000,000.00
1,991,560.00
1,001,560.00
7.728
10,199,962.50
9,555,000.00
12,227,437.95
12,520,012.05
10,199,962.50
9,555,000.00
12,227,437.95
IZ520,012.05
3.000
1,000,000.00
1,000,000.00
995,630.00
-
8.418
3,688,593.75
3,000,000.00
4,318,140.00
4,423,140.00
4,688,593.75
4,000,000.00
5,313,770.00
4,423,140.00
1.680 3,166,765.72 3,166,765.72 3,166,765.72 3,166,765.72
2.003 17, 845,446.45 17.845, 446.45 17, 845,446.45 17, 845,446.45
7.229 1, 002, 970.00
1, 000, 000.00
1,007,650.00
1, 012, 04 0.00
7.531 995, 903.47
1,000,000.00
1,012,610.00
1,017,720.00
7.159 998,750.00
1,000,000.00
1,023,350.00
1,028,800.00
2,997,623.47
3,000,000.00
3,043,610.00
3,058,560.00
40,898,391.89 39,567,212.17 43,588,590.12 42,015,484.22