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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.