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02-01-2011 - City Treasurer's Report - December 20100* • TO: Andrew G. Pasmant, City Manager and City Council FROM: Thomas Bachman, Assistant City Manager City of West Covina Memorandum AGENDA Item No. -4P 7 Date February 1, 2011 SUBJECT: CITY TREASURER'S REPORT FOR DECEMBER 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 December Report shows the City's portfolio increased from $38,638,556.56 on November 30, 2010, to $40,894,562.75 on December 31, 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 932 days or approximately two and a half years. Approximately 4 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 42 percent is held in the State of California Local Agency Investment Fund (LAIF) and 20 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 34 percent of the portfolio. 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 Controller R vie Approve by: homas Bachman Finance Director 0 U 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 DECEMBER 31, 2010 NOVEMBER 30 DEPOSITS WITHDRAWALS DECEMBER 31 $ 313,997.00 $ 23,056,784.92 $ 23,117,591.92 $ 253,190.00 - 116,663.05 116,663.05 - 50,000.00 39,117.70 39,117.70 50,000.00 151,518.23 4,436,890.37 4,395,421.63 192,986.97 $ 515,515.23 $ 27,649,456.04 $ 27,668,794.30 $ 496,176.97 1.213% $ 726,060.85 $ 9,823,542.88 $ 9,253,734:06 $ 1,295,869.67 3.169% 3,688,593.75 - 3,688,593.75 *' 9.020% 10,199,962.50 - - 10,199,962.50 ** 24.942% 15,442,989.98 5,200,000.00 3,500,000.00 17,142,989.98 41.920% 8,065,434.25 5,535.63 8,070,969.88 19.736% $ 38,123,041.33 $ 15,029,078.51 $ 12,753,734.06 $ 40,398,385.78 98.787% $ 38,638,556.56 $ 42,678,534.55 $ 40,422,528.36 $ 40,894,562.75 100% *" 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 January 19, 2011. EARNED INTEREST YIELD THIS PERIOD: 3.182% SIX-MONTH TREASURY BILL YIELD: 0.190% REVIEWED BY: ytiw.. Dennis Swink, City Controller SUBMITTED BY: ThomaeFtfachman, Assistant City Manager/Finance Director PREPARED BY: 00�/*` Angel F. Patena, evenue Services Supervisor APPVVED BY: Ma4an V. Smithson, City Treasurer City of West Covina Portfolio Details December 31, 2010 AVERAGE 12/31 /2010 11 /30/2010 INVESTMENT INVESTMENT ISSUER I MATURITY I PURCHASE I DAYS TO I CUSIP 1 RATE YIELD COST PAR MARKET MARKET I NUMBER TYPE DATE DATE MATURITY VAI VALUE' 1986-06-01 " FHLMC U.S. GOVERNMENT AGENCY 1985-12-10 " FNMA U.S. GOVERNMENT AGENCY 1992-04-20 LACIP 1989-10-19 LAIF LOS ANGELES COUNTY TREASURER — STATE OF CALIFORNIA 06/01/16 06/01/86 313400MC4 8.250 1951 12/10/15 12/10/85 313586UB3 10.350 1780 04/20/92 557 N/A 1.330 10/19/89 215 N/A 0.462 7.728 10,199,962.50 9,555,000.00 11,613,433.65 11,925,882.15 10,199,962.50 9,555,000.00 11,613,433.65 11,925,882.15 8.418 3,688,593.75 3,000,000.00 4,123,710.00 4,229,070.00 3,688,593.75 3,000,000.00 4,123,710.00 4,229,070.00 1.330 8,070,969.88 8,070,969.88 8,070,969.88 8,070,969.88 0.462 17,142, 989.98 17,142, 989.98 17,142, 989.98 17,142, 989.98 39,102,516.11 37,768,959.86 40,951,103.51 41,368,912.01 ` 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 2010 LACIP Earnings Rate and November 2010 LACIP Weighted Average Days to Maturity were used due to the unavailability of December 2010 figures as of the writing of this report. Note: The Wells Fargo Sweep account was not included in the calculation of average maturity. 0, TOTALS: CITY OF WEST COVINA BOND DETAIL REPORT December 31, 2010 Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Market Value Rate Amount 1988 Lease Revenue Refunding Bonds Reserve 1988 Lease Revenue Refunding Bonds Reserve Lease Revenue Refunding Bonds L/C Fund Lease Revenue Refunding Bonds L/C Fund 2002 PFA Lease Revenue Refunding Bond Credit Facility 2002 PFA Lease Revenue Refunding Bond Credit Facility 2003 Community Center COPS Reserve Account 2003 Community Center COPS Reserve Account 2004 WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility IV WC PFA Var Rate Lease Rev Bds Ser A & B Credit Facility 2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment 2005 WC PFA Var Rate Lease Rev Ref Series C Lease Payment Federated Treasury Obligations Federated Investors Co Cash Original LOC #NZS671159 I CUSIP #S86714370 Wells Fargo Cash California Strs, Confirming LOC L/C #53 Union Bank of CA L/C #3065234230 Cash First American Treas Oblig Cl d Corp Trust Cash California Strs Union Bank First American Funds, Inc. Union Bank of CA Irrevocable LC #3065235825 Union Bank Cash First American Treas Oblig Cl d Corp Trust First American Funds, Inc. Cash Open 396,611.71 396,611.71 396,611.71 0.00 0.00 0.00 396,611.71 396,611.71 396,611.71 12/3/2013 1.00 1.00 0.00 0.00 0.00 0.00 1.00 1.00 0.00 Ending Balances 396,612.71 396,612.71 396,611.71 6/26/2013 0.00 1.00 0.00 6/26/2012 0.00 1.00 0.00 - 0.00 0.00 0.00 0.00 2.00 0.00 Ending Balances 0.00 2.00 0.00 Open 357,861.88 357,861.88 357,861.88 - 0.00 0.00 0.00 357,861.88 357,861.88 357,861.88 Ending Balances 357,861.88 357,861.88 357,861.88 11/18/2011 1.00 1.00 0.00 - 0.00 0.00 0.00 1.00 1.00 0.00 Ending Balances 1.00 1.00 0.00 Open 2,703.77 2,703.77 2,703.77 - 0.00 0.00 0.00 2,703.77 2,703.77 2,703.77 Ending Balances 2,703.77 2,703.77 2,703.77 Description of Bond Type of Bond Type of Investment Description of Issuer Maturity Date Original Cost Shares/Face Market Value Rate Amount 2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account First American Treas Oblig Cl d Corp Trust 2006 WC PFA Lse Rev Bd Series A & B 2006A Reserve Account Cash 2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account First American Treas Oblig FD CL D 2006 WC PFA Lse Rev Bd Series A & B 2006B Reserve Account Cash *Market valuations have been provided by BNY Western Trust Company and U.S. Bank Corporate Trust Services 0. First American Funds, Inc. Open 945,257.87 945,257.87 945,257.87 - 0.00 0.00 0.00 945,257.87 945,257.87 945,257.87 First American Funds, Inc. Open 577,737.00 577,737.00 577,737.00 - 0.00 0.00 0.00 577,737.00 577,737.00 577,737.00 Ending Balances 1,522,994.87 1,522,994.87 1,522,994.87 GRAND TOTALS 2,280,174.23 2,280,176.23 2,280,172.23