01-16-2007 - November 2006 Treasurer's ReportCity of West Covina
Memorandum
AGENDA
Item No. D-4
Date January 16, 2007
TO: Andrew G. Pasmant, City Manager
and City Council'
FROM: Thomas Bachman, Director
Finance Department
SUBJECT: NOVEMBER 2006 TREASURER'S REPORT
RECOMMENDATION:
It is recommended the City Council receive and file this report.
DISCUSSION:
Effective January 1, 2006, Section 53646 of the Government Code states that a city's chief
fiscal officer may 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.
Although it is no longer a requirement to submit quarterly reports to the local legislative
body, the Finance Department will continue to submit Treasurer's reports to the West Covina
City Council each month. Also, on January 1, 2001, AB943 took effect, amending the law
requiring 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 2006.
The . November Report shows the City's portfolio decreased from $64,327,159.54 on
October 31, 2006 to $60,853,41.2.25 on November 30, 2006. Due to the cyclical nature of
the City's cash flow, it is not at all unusual for the portfolio to vary by large amounts from
month'to month. The overall average maturity of the portfolio is 1032 days or approximately
three years. This unusually long maturity is caused by two, long term, high interest
investments made in the early 1980s, which constitute approximately twenty two 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 thirty five percent of the portfolio has an average
maturity of less than one year. "
Prepared by: Dennis Swink
Controller
Reviewed/Approved by: Thomas Bachman
Finance Director
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
NOVEMBER 30, 2006
TYPES OF DEPOSITS:
OCTOBER 31 DEPOSITS WITHDRAWALS
NOVEMBER 30.
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING
$ 265,002.00 $. 17,641,534.66 $ 17,623,721.66 $
282,815.00
WELLS FARGO BANK GEN AUTO & LIABILITY
_ 295,292.54 295,292.54 .
-
WELLS FARGO BANK WORKER'S COMPENSATION
103,608.20 103,608.20
-
WELLS FARGO PAYROLL
43,008.64 2,983,041.70 2,997,359.74
28,690.63
PACIFIC WESTERN NAT BANK DEFERRED LOAN PROGRAM
1,057.57 33,917.63 33,706.63
1,268.57
PACIFIC WESTERN NAT BANK CITY COUNCIL DEBIT CARDS
17,46180, 22.00 1,576.09
15,908.71
SUB -TOTAL
$ 326,1531.01 $ 21,067,416.73 $ 21,055,264.83 $
328,682.91
0.540%
OTHERINVESTMENTS:
WELLS FARGO SWEEP
$ 1,024,026.26-. $ 5,829,870.87 $ 5,322,696.27 $
1,531,200.86
2.516%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
6,664,713.75 - 1,000,000.00
5,664,713.75 —
.
9.309%
FEDERAL HOME LOAN MORTGAGE CORPORATION.(FHLMC)
13,227,184.50 -
13,227,184.50 —
21.736%
FEDERAL HOME LOAN BANKS (FHLB)
13,994,820.00 - 3,996,880 00
9,997,940.00
16.430%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)
25,724,350.02 4,500,000.00 3,500,000.00
26,724,350.02
43.916%
LOS ANGELES COUNTY POOL (LACIP)
3,365,534.00 13,806.21
3,379,340.21
5.553%
SUB -TOTAL
$ 64,000,628.53 $ 10,343,677.08 $ 13,819,576.27 $
60,524,729.34
99.460%
TOTAL
$ 64,327,159.54 $ 31,401,093.81 $ 34,874,841.10 $
60,863,412.25
100W
"* These investments include two high interest long term investments which 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, 2005.
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, 2006. .
EARNED INTEREST YIELD THIS PERIOD: 5.589%
SIX-MONTH TREASURY BILL YIELD: 4.950%
/
WED BY:
PREPARED
Dennis Swink, City Controller
Angel F. Plteha, Revenue Services Supervisor
SUBMITTED BY:
A PROV1 BY:
Tho s Bachman, Fin ce irector
Maria V. Smithson, Treasure
City of West Covina Portfolio Details
November 30, 2006
AVERAGE
1
30/2006
10/31/2006
INVESTMENT
INVESTMENT
ISSUER
MATURITY
PURCHASE
I
DAYS TO
I
CUSIP
RATE
I
YIELD
COST
PAR
MARKET
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE'
VALUE'
2006-04-21
FHLB
U.S. GOVERNMENT AGENCY
11/15/O6
04/21/06"
3133MKED5
4.875
Matured 11-15-06
2006-06-29
FHLB
U.S. GOVERNMENT AGENCY
11/29/06
06/29/06
3133XFYY6
5.400
-
Matured 11-29-06
_
2004-08-04
FHLB
U.S. GOVERNMENT AGENCY
12/08/06
09/08/04
3133X8BR2
3.060
3.060
1,000,000.00
1,000.000.00
999,690.00
997,500 00
2006-03-22
FHLB
U.S. GOVERNMENT AGENCY
12/22/06
`03/22/06
3133XEUE7
5.000
5.000
1,000,000.00
1,000,000.00
999,690.00
499,380.00
2005-08-30
FHLB
U.S. GOVERNMENT AGENCY
02/28/07
08/30/05
3133XCRV7
4.250
4.250
2,000,000.00
2,000,000.00
1,995,000.00
1.992,500.00
2004-11-30
FHLB
U.S. GOVERNMENT AGENCY
05/30/07
11/30/04
3133X9EV8
3.180.
3.180
1,000,000.00
1,000.000.00
990,310.00
988,130.00
2005-08-08
FHLB
U.S. GOVERNMENT AGENCY
08/08/07
08/08/05
3133XCMC4
4,250
4.259
997,940.00
1,000,000.00
993,440.00
992,190,00
2005-02-24
FHLB
U.S. GOVERNMENT AGENCY
08/24/07
02/24/05
3133XAQ26
3.750
3.750
1,000,000.00
1,000,000.00
990,310.00
988,440.00
2005-05-26
FHLB
U.S. GOVERNMENT AGENCY
11/26/07
05/26/05
3133XBS89
4.200
4.200
1,000,000.00
1,000,000.00
991,880.00
990,310.00
2005-05-19
FHLB
U.S. GOVERNMENT AGENCY
02/19/08
05/19/05
3133XBQ57
4.180
4.180
1,000,000.00
1,000,000.00
991,250.00
989,690.00
2005-03-07
FHLB
U.S. GOVERNMENT AGENCY
03/07/08
03/07/05
3133XAQ59
4.000
4.000
1,000,000.00
1,000,000.00
988,750.00
986,56000
214
9,997,940.00
10,000,000.00
9,940.320.00
9,924,700 00
2006-09-01
FHLMC
U.S. GOVERNMENT AGENCY
03/21/07
09/01/06
3134A1RG7
6.943
5.256
3,027,222.00
3,000,000.00
3,015,000.00
3,017,820.00.
1986-06-01
'* FHLMC
U.S. GOVERNMENT AGENCY
06/01/16
06/01/86
313400MC4
8.250
7.728
10,199,962,50
9.555,000.00
11,901,994.65
11,758,669.65
2752
13,227,184.50
12,555,000.00
14,916,994.65
14,776,489 65
2004-11-22
FNMA
U.S. GOVERNMENT AGENCY '
11/22/06
11/22/04
31359MWRO
3.000
-
Matured 11-22-06
2006-06-20
FNMA
U.S. GOVERNMENT AGENCY
12/29/06
06/20/06
3136F4F58
3.125
5.461
1,976,120.00
2,000.000.00
1,996.880.00
1,992,500.00
1985-12-10
•* FNMA
U.S. GOVERNMENT AGENCY
12/10/15
12/10/85
313586UB3
10.350
8.418
3,688.593.75
3,000,000.00
4,188,750.00
4,153,140.00
2210
5.664,713.75
5,000,000.00
6,185,630.00
6,145,640.00
1992-04-20
LACIP
LOS ANGELES COUNTY TREASURER-
04/20/92
363
N/A
5.170
5.170
3,379,340.21
3,379,340.21
3,379,340.21
3,379,340.21
1989-10-19
LAIF
STATE OF CALIFORNIA
10/19/89
185
N/A
5.125
5.125
26.724.350.02
26,724,350.02
26,724.350.02
26,724,350.02
1032
TOTALS:
58,993,528.48
57,658,690.23
61,146,634.88
60,950,519.88
*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 2006 LACIP Earnings Rate and October 2006 LACIP Weighted Average Days to Maturity were 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.