01-06-2009 - November 2008 Treasurer's Report•
City of West Covina
Memorandum '
.AGENDA.
Item No. D-4
Date January 6, 2009
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Thomas Bachman, Director
Finance Department
SUBJECT: NOVEMBER 2008 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.
The November Report shows the City's portfolio decreased from $37,786,496.90 on October
31, 2008, to $34,164,472.36 on November 30, 2008. 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 1,355 days or approximately three and a half
years. The portfolio includes two long-term, high interest investments made in the early
1980s which constitute approximately 40 percent of the portfolio. Approximately 32 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 28 percent
of the portfolio has an average maturity of about half a year.
Prepared by: Dennis Swink
Controller
n
Revie ed/ pproved by: Thomas Bachman
Finance Director
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
NOVEMBER 30, 2008
TYPES OF DEPOSITS: OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING $ 276,507.00 $ 13,122,410.66 $ 13,071,906.66 $ 327,011.00
WELLS FARGO BANK GEN AUTO & LIABILITY - 39,410.20 39,410.20 -
WELLS FARGO BANK WORKER'S COMPENSATION - 56,383.67 56,383.67 -
WELLS FARGO PAYROLL 143,387.19 3,535,305.13 3,373,575.56 305,116.76
SUB -TOTAL $ 419,894.19 $ 16,753,509.66 $ 16,541,276.09 $ 632,127.76 1.850%
OTHER INVESTMENTS:
WELLS FARGO SWEEP $ 1,485,352.49 $ 3,303,816.28 $ 4,051,566.08 $ 737,602.69 2.159%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 5,611,935.75 - - 5,611,935.75 ** 16.426%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50 - 10,199,962.50 ** 29.855%
FEDERAL HOME LOAN BANKS (FHLB) 3,003,337.00 - 1,003,877.00 1,999,460.00 5.852%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) 13,364,382.80 1,200,000.00 3,300,000.00 11,264,382.80 32.971%
LOS ANGELES COUNTY POOL (LACIP) 3,701,632.17 17,368.69 - 3,719,000.86 10.886%
SUB -TOTAL $ 37,366,602.71 $ 4,521,184.97 $ 8,355,443.08 $ 33,532,344.60 98.150%
TOTAL $ 37,786,496.90 $ 21,274,694.63 $ 24,896,719.17 $ 34,164,472.36 100%
** 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 8, 2008.
EARNED INTEREST YIELD THIS PERIOD: 5.160% SIX-MONTH TREASURY BILL YIELD: 0.730%
REVIEWED BY: PREPAR B
Dennis Swink, City Controller Angel F. atena, Revenue Services Supervisor
SUBMITTED BY: /�A(��� D BY: _
Thom s man, i ce Director Maria . Smithso ity Vreasurer
City of West Covina Portfolio Details
November 30, 2008
AVERAGE
11/30/2008
10/31/2008
INVESTMENT
I INVESTMENT
ISSUER
MATURITY
PURCHASE
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
I
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE*
VALUE*
2007-01-11.5
FHLB
U.S. GOVERNMENT AGENCY
11/14/08
01/11/07
3133MKGK7
5.250
-
Matured 11-14-08
2007-01-11.1
FHLB
U.S. GOVERNMENT AGENCY
12/12/08
01/11/07
3133XHTU6
5.000
5.007
1,999,460.00
2,000,000.00
2,002,500.00
2,005,620.00
12
1,999,460.00
2,000,000.00
2,002,500.00
2,005,620.00
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
11,967,637.50
11,245,088.40
2701
10,199,962.50
9,555,000.00
11,967,637.50
11,245,088.40
2007-01-11.6
FNMA
U.S. GOVERNMENT AGENCY
03/16/09
01/11/07
31359MUQ4
3.125
5.000
1,923,342.00
2,000,000.00
2,011,880.00
2,003,760.00
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
4,219,680.00
3,994,680.00
1747
5,611,935.75
5,000,000.00
6,231,560.00
5,998,440.00
1992-04-20
LACIP
LOS ANGELES COUNTY TREASURER—
04/20/92
N/A
3.900
3.900
3,719,000.86
3,719,000.86
3,719,000.86
3,719,000.86,
501
1989-10-19
LAIF
STATE OF CALIFORNIA
10/19/89
NIA
2.568
2.568
11,264,382.80
11,264,382.80
11,264,382.80
11,264,382.80
228
1355 TOTALS: 32,794,741.91 31,538,383.66 35,185,081.16 34,232,532.06
* 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 2008 LACIP Earnings Rate and October 2008 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.