01-18-2011 - City Treasurer's Report - November 2010City of West Covina
Memorandum
AGENDA
Item No.
Date
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: - Thomas Bachman, Assistant City Manager
January 18, 2011
SUBJECT: CITY TREASURER'S REPORT FOR NOVEMBER 2010
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 $39,966,074.46 on October
31, 2010, to $38,638,556.56 on November 30, 2010. 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 962 days or approximately two and a half years.
Approximately 3 percent of the portfolio is on deposit in various bank accounts. These funds
are available to satisfy obligations as needed. The majority of the portfolio is on deposit in
two investment pools. Approximately 40 percent is held in the State of California Local
Agency Investment Fund (LAIF) and 21 percent is in the Los Angeles County Investment
Pool (LACIP). These funds are completely liquid since the City could withdraw them at any
time. The portfolio also includes two long-term, high interest investments made in the early
1980s which constitute approximately 36 percent of the portfolio.
Prepared by: Dennis Swink
Controller
Finance Director
TYPES OF DEPOSITS:
CHECKING ACCOUNTS
WELLS FARGO GENERAL CHECKING
WELLS FARGO BANK GEN AUTO & LIABILITY
WELLS FARGO BANK WORKER'S COMPENSATION
WELLS FARGO PAYROLL
SUB -TOTAL
OTHER INVESTMENTS:
WELLS FARGO SWEEP
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF)
LOS ANGELES COUNTY POOL (LACIP)
SUB -TOTAL
TOTAL
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
NOVEMBER 30, 2010
OCTOBER 31
DEPOSITS WITHDRAWALS NOVEMBER 30
$ 278,289.00
$
14,531,632.35
$
14,495,924.35
$
313,997.00
-
97,024.72
97,024.72
-
50,000.00
142,856.73
142,856.73
50,000.00
73,468.64
3,124,200.83
3,046,151.24
151, 518.23
$ 401,757.64
$
17,895,714.63
$
17,781,957.04
$
515,515.23
1.334%
$ 1,178,768.09
$
5,091,118.16
$
5,543,825.40
$
726,060.85
1.879%
3,688,593.75
-
-
3,688,593.75 *"
9.546%
10,199,962,50
-
-
10,199,962.50
26.398%
16,442,989.98
2,200,000.00
3,200,000.00
15,442,989.98
39.968%
8,054,002.50
11,431.75
8,065,434.25
20.874%
$ 39,564,316.82
$
7,302,549.91
$
8,743,825.40
$
38,123,041.33
98.666%
$ 399966,074.46
$
25,198,264.54
$
26,525,782.44
$
38,638,556.56
100%
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, 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 14, 2010.
EARNED INTEREST YIELD THIS PERIOD: 3.358% SIX-MONTH TREASURY BILL YIELD: 0.180%
REVIEWED BY:
�
Dennis Swink, City Controller
SUBMITTED Y:
Thomas chman, ssis i er/Finance Director
PREPARED
Angel F. Patefia, Revenue Services Supervisor
r APYR�O ED BY:
Marian V. Smith n, City Treasurer
s
s
City of West Covina Portfolio Details
November 30, 2010
AVERAGE
11 /30/2010
10/31 /2010
INVESTMENT
INVESTMENT
ISSUER
MATURITY
PURCHASE
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
MARKET
NUMBER
TYPE
DATE
DATE
MATURITY
VALUE*
VALUE'
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
11,925,882.15
12,099,018.75
1981 10,199,962.50
9,555,000.00
11,925,882.15
12,099,018.75
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
4,229,070.00
4,286,250.00.
1810 3,688,593.75
3,000,000.00
4,229,070.00
4,286,250.00
1992-04-20 LACIP LOS ANGELES COUNTY TREASURER— 04/20/92 499
N/A 1.380 1.380
8,065,434.25
8,065,434.25
8,065,434.25
8,065,434.25
1989-10-19 LAIF STATE OF CALIFORNIA 10/19/89 184
N/A 0.454 0.454
15,442,989.98
15,442,989.98
15,442,989.98
15,442,989.98
962
TOTALS:
37,396,980.48
36,063,424.23
39,663,376.38
39,893,692.98
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 2010 LACIP Earnings Rate and October 2010 LACIP Weighted Average Days to Maturity were used due to the unavailability of November 2010 figures as of the writing of this report.
Note: The Wells Fargo Sweep account was not included in the calculation of average maturity.