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02-01-2005 - December 2004 Treasurer's ReportCity of West Covina Memorandum AGENDA Item No. D-4 Date February 1, 2005 TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman, Director Finance Department SUBJECT:. DECEMBER 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 December 2004 report will be submitted to the State. The Finance Department exceeds these requirements by submitting Treasurer's reports to the West Covina City Council each month. The December Report shows the City's portfolio increased from $42,830,103.34 on November 30, 2004 to $44,923,352.70 on December 31, 2004. 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 1658 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 percent of the portfolio. Approximately forty three 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. Bond Detail Report: The December report also includes a Bond Detail Report. This report shows how Fiscal Agents are investing City, Community Development Commission and Public Financing Authority cash, which they hold to service various debts. This information is reported to the City Council quarterly. Prepared by: Dennis Swink Reviewed/ pproved y: 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 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-I I 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. A-7 A-8 A-9 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% OTHERINVESTMENTS: 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) ft55 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) 1,826.66 - 139,861.52 0.202% LOS ANGELES COUNTY POOL (LACIP) . 3,303,408.67 500,000.00 3,380,764.18 4.892% SUB -TOTAL 71,066,979.34 $ 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 $ 69,108,684.31 100% "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 August 31 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. Pateria, Departmental Aide APPROVED BY: Marian V. Smithson, City Treasurer • �J B-1 B-2 City of West Covina Portfolio Details July 31, 2001 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 I ISSUER PURCHASE MATURITY I DAYS TO CUSIP 1 RATE, I I YIELD COST I PAR I MARKET MARKET I 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 LAW STATE OF CALIFORNIA 5273 LAW STATE OF CALIFORNIA 5476 MNYMKT MARQUETTE NATIONAL BANK 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 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 03/03/00 10/01/01 31331HG35 6.0000 6.0800 495,435.00 500,000.00 501,955.00 501,875.00 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 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 03/08/00. j/15/0 E8 6.0000 6.0500 989,360.00 1,000,000.00 1,007,030.00 1,007,500.00 06/13/00 3133M9FE7 6.0000 6.9792 980,460.00 1,000,000.00 1,024,060.00 1,020,780.00 -5!� / 2 3133M34N2 6.0700 6.2100 1,000,000.00 1,000,000.00 1,025,940.00 1,023,750.00 / / 3 3133M3DQ5 6.0050 6.2000 1,000,000.00 1,000,000.00 1,032,500.00 1,026,410.00 / 07/07/03 3133M4SW4 6.0000 6.2100 1,000,000.00 1,000,000.00 1,035,000.00 1,027,030.00 02/24/99 02/24/04 3133M7KE5 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 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 12/10/85 12/10/15 313586UB3 10.3500 8.1400 3,688,593.75 3.000,000.00 4,235,160.00 4,086,090.00 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 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 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 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 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 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 s INVESTMENT NUMBER INVESTMENT TYPE ISSUER 5457 MTN NATIONSBANK CHARLOTTE NC 5463 MTN MERRILL LYNCH & CO INC 5499 MTN ASSOC. CORP OF N.A. 5460 MTN MERRILL LYNCH & CO INC 5462 MTN SALOMON SMITH BARNEY HLDGS I 5491 . MTN COMMERCIAL CREDIT COMPANY 5493 MTN GENERAL ELECTRIC CAPITAL CORP 5494 MTN FORD MOTOR CREDIT CO 5495 MTN HEWLETT-PACKARD CO STOCK** SOUTHWEST WATER COMPANY City of West Covina Portfolio Details July 31, 2001 AVERAGE 7/31/2001 6/30l2001 PURCHASE MATURITY DAYS TO CUSIP RATE YIELD COST PAR MARKET MARKET DATE DATE MATURITY VALUE" VALUE' 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 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 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 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 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 0//00 0//020161 6.5000 6.7500 972,370.00 11000,000.00 1,039,310.00 1,023,430.00 06/1515/00 02/15/05 36962GUMUM4 .2 7,1701 1,002,970.00 1,000,000.00 1,078,280.00 1,061,590.00 06/15/00 03/15/05 345397 7.6000 995,903.47 1,000,000.00 1,057,520.00 1,039,040.00 06/15/00 06/15/05 .1 7.1792 998,750.00 1,000,000.00 1,049,100.00 1,034,680.00 disli 4 9,988,553.47 10,000,000.00 10,342,140.00 #REF! 04/16/86 001-751-F4533110 N/A 5 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 STATEMENT OF TREASURER'S ACCOUNTABILITY DECEMBER 31, 2004 TYPES OF DEPOSITS: NOVEMBER 30 DEPOSITS WITHDRAWALS DECEMBER 31 CHECKING ACCOUNTS WELLS FARGO GENERAL CHECKING $ 1,289,167.05 $ 14,801,493.18 $ 14,976,010.87 $ 1,114,649.36 WELLS FARGO BANK GEN AUTO & LIABILITY (4,584.22) ` 23,239.68 16,199.77 2,455.69 WELLS FARGO BANK WORKER'S COMPENSATION (10,083.51) ` 111,698.73 101,845.89 (230.67) ` WELLS FARGO PAYROLL (68,496.73) • 2,872,710.49 2,854,865.98 (50,652.22) ` WELLS FARGO CDBG DEFERRED LOAN PROGRAM 122,036.24 9.33 122,045.57 PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM 19,855.41 21,416.00 21,416.00 19,855.41 PACIFIC WESTERN NAT BANK CITY COUNCIL DEBIT CARDS 18,308.80 - 1,580.60 16,728.20 SUB -TOTAL $ 1,366,203.04 $ _ 17,830,567.41 $ 17,971,919.11 $ 1,224,851.34 2.727% OTHER INVESTMENTS: WELLS FARGO SWEEP $ 565,508.41 $ 6,615,667.19 $ 6,085,733.10 $ 1,095,442.50 2.438% FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 4,688,593.75 4,688,593.75 •` 10.437% FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50 10,199,962.50 `• 22.705% FEDERAL HOME LOAN BANKS (FHLB) 2,000,000.00 2,000,000.00 4.452% CORPORATE MEDIUM TERM NOTES (MTN) 2,997,623.47 2,997,623.47 6.673% LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) 17,845,446.45 2,700,000.00 1,000,000.00 19,545,446.45 43.508% LOS ANGELES COUNTY POOL (LACIP) 3,166,765.72 4,666.97 3,171,432.69 7.060% SUB -TOTAL $ 41,463,900.30 $ 9,320,334.16 $ 7,085,733.10 $ 43,698,501.36 97.273% TOTAL $ 42,830,103.34 $ 27,160,901.57 $ 25,057,652.21 $ 44,923,352.70 100% `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 January 18, 2006. 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 January 21, 2005. EARNED INTEREST YIELD THIS PERIOD: 4.353% SIX-MONTH TREASURY BILL YIELD: 2.430% BY: Dennis Swink, City Controller SUBMITTED BY: T omas achman, Finance Director PREPA14EDv Ang, Y . Patena, Revenue Services Supervisor APPJROVED BY: Marlah V. Smith on, City Treasurer A •. City of West Covina Portfolio Details December 31, 2004 AVERAGE PAR 12/31/2004 11/30/2004 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 3.180 1,000,000.00 1,000,000.00 995,630.00 995.000.00 04-01 FHLB U.S. GOVERNMEN TAGENCY 09/08/04 12/08/06 3133X8BR2 3.060 3.060 1,000,000.00 1,000,000.00 996.560.00 996,560.00 784 2,000,000.00 2,000,000.00 1,992,190.00 1,991,560.00 86-01 '• FHLMC U.S. GOVERNMENT AGENCY 06/01/86 06/01/16 313400MC4 8.250 7.728 10,199,962.50 9.555.000.00 12,391,688.40 12,227,437.95 4111 10,199,962.50 9,555,000.00 12,391,688.40 12,227,437.95 04-02 FNMA U.S. GOVERNMENT AGENCY 11/22/04 11/22/06 31359MWRO 3.000 3.000 1,000,000.00 1,000,000.00 995,630.00 995,630.00 85-01 "FNMA U.S. GOVERNMENT AGENCY 12/10/85 12/10/15 313586UB3 10.350 8.418 3,688,593.75 3,000,000.00 4,374,390.00 4,318,140.00 . 3336 4,688,593.75 4,000,000.00 5,370,020.00 5,313,770.00 92-01 LACIP LOS ANGELES COUNTY TREASURER"' 04/20/92 199 N/A 1.880 1.880 3,171,432.69 3,171,432.69 3,171,432.69 3,171,432.69 89-01 LAIF STATE OF CALIFORNIA 10/19/89 210 N/A 2.134 2.134 19,545,446.45 19,545,446.45 19,545,446.45 19,545,446.45 00-01 MTN GENERAL ELECTRIC CAPITAL CORP 06/15/00 02/01/05 36962GUM4 7.250 7.229 1,002,970.00 1,000,000.00 1,003,260.00 1,007,650.00 00-02 MTN FORD MOTOR CREDIT CO 06/15/00 03/15/05 345397SQ7 7.500 7.531 995,903.47 1,000,000.00 1,008,540.00 1,012,610.00 00-03 MTN HEWLETT-PACKARD CO -06/15/00 06/15/05 428236AD5 7.150 7.159 998,750.00 1,000,000.00 1.019.030.00 1,023,350.00 91 2,997,623.47 3,000,000.00 3,030,830.00 3,043,610.00 1658 TOTALS: 42,603,058.86 41,271,879.14 45,501,607.54 45,293,257.09 • 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 November 2004 LACIP Earnings Rate and November 2004 LACIP Weighted Average Days to Maturity were used due to the unavailability of December figures as of the writing of this report. Note: The Wells Fargo Sweep account was not Included In the calculation of average maturity. • Description of Bond 1988 Lease Revenue Refunding Bonds 1988 Lease Revenue Refunding Bonds 2002 PFA Lease Revenue Refunding Bond Lease Payment 2002 PFA Lease Revenue Refunding Bond Credit Facility 2003 Community Center COPs 2003 Community Center COPs 2003 Community Center COPs 2003 Community Center COPS Lease Revenue Fund CITY OF WEST COVINA BOND DETAIL REPORT December 31, 2004 Type of Bond Type of Investment Description of Issuer Reserve Federated Treasury Obligations Federated Investors Co Cash L/C Fund Cash First American Treasury Oblig Fund CL D First American Funds, Inc. California Strs, Letter of Credit #3065234230 California Strs Union Bank of CA UC #3065234230 Union Bank Interest Account First American Treas Oblig CI d Corp Trust First American Funds, Inc. Cash Reserve Account First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Cash . Construction Fund First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Cash *Market valuations_have been provided by BNY Western Trust Company and U.S. Bank Corporate Trust Services Maturity Date Original Cost Shares/Face Market Value Rate Amount Open 372,980.32 372,980.32 372,980.32 1.660 0.00 0.00 0.00 72,980.32 372,980.32 3 ,980. 0.00 0.00 0.00 0.11 0.11 0.11 0.11 0.11 1 Ending Balances 372,980.43 372,980.43 372,980.43 Open 11,289.61 11,289.61 11,289.61 1.270 0.00 0.00 0.00 11,289.61 11,289.6111,289.61 6/26/2005 0.06 22,836,765.00 0.00 - 6/26/2007 0.00 22,836,765.00 0.00 0.00 0.00 0.00 0.00 45,673,53 .00 0.00 Ending Balances 11,289.61 45,684,819.61 11,289.61 2,533.16 2,533.16 2,533.16 1.260 0.00 0.00 0.00 2,533.16 2,533.16 2,533.16 Open 35.80 35.80 35.80 - 0.00 0.00 0.00 35. 0 35.80 5.80 Open 292,751.36 292,751.36 292,751.36 1.270 0.00 0.00 0.00 292,75 .36 292,751.36 292,7 1.36 Open 54.78 54.78 54.78 1.830 0.00 0.00 0.00 54.78 54.78 54.7 Ending Balances 296,375.10 295,375.10 295,376.10 GRAND TOTALS 679,646.14 46,353,175.14 679,645.14 •