01-17-2012 - City Treasurer's Report for November 2011•
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TO: Andrew G. Pasmant, City Manager
and City Council
City of West Covina
Memorandum
AGENDA
Item No. 4
Date January 17 , 2012
FROM: Thomas Bachman, Assistant City Manager
SUBJECT: CITY TREASURER'S REPORT FOR NOVEMBER 2011'
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 clief
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 by $1,227,510 from $45,950,779
on October 31, 2011, to $44,723,269 on November 30, 2011. 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 813 days or approximately two
years. Approximately 7 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 31 percent is held in the State of California
Local Agency Investment Fund (LAIF) and 31 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 31 percent of the portfolio.
Prepared by: Dennis'Swink
Controller
KevieWed/App?o_v'etSy7: Thomas Bachman
Finance Director
CITY OF WEST COVINA
STATEMENT OF TREASURER'S ACCOUNTABILITY
NOVEMBER 30, 2011
11
TYPES OF DEPOSITS: OCTOBER 31 DEPOSITS WITHDRAWALS NOVEMBER 30
CHECKING ACCOUNTS
WELLS FARGO-GENERAL CHECKING $ 296,891.00 $ 17,391,,464.72 $ 17,380,583.72 $ 307,772.00
WELLS FARGO BANK GEN AUTO & LIABILITY 1,000.00 69,208.05 62,666.42 7,541.63 '
WELLS FARGO BANK WORKER'S COMPENSATION 50,000.00 73,720.81 73,720.81 ' S0,000.00
WELLS FARGO PAYROLL 73,442.43 4,244,100.27 2,75056.05 1,561,386.65
SUB -TOTAL $ '421,333.43 $ 21,778,493.85 $ 20,273,127.00 $ 1,926,700.28 4.308%
OTHER INVESTMENTS:
WELLS FARGO.SWEEP $ 674,277.64 $ 6,625,596.13 $ 6,223,357.01 $ 1,076,516.76 2.407%
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) 3,688,593.75 - - 3,688,593.75 *' 8.248%
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) 10,199,962.50 - - 10,199,962.50 ** 22.807%
FEDERAL HOME LOAN BANKS.(FHLB) - - - 0.000%
UNITED STATES TREASURY BILL - - 0.000%
LOCAL AGENCY INVESTMENT FUND - CITY (LAIF) 14,991,671 65 1,300,000.00 2,350,000.00 13,941,671.65 31.173%
LOS ANGELES COUNTY POOL (LACIP) 15,974,939.74 514,884.46 2,600,000.00 13,889,824.20 31.057%
SUB -TOTAL $ 45,629,445.28 $ 8,440,480.59 $ 11,173,357.01 $ 42,796,568.86 95.692%
TOTAL $ 45,950,778.71 $ 30,218,974.44 $ 31,446,484.01 $ 44,723,269.14 100%
** 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 9, 2012.
EARNED INTEREST YIELD THIS PERIOD: 3.081% SIX-MONTH TREASURY BILL YIELD: 0.050%
REVIEWED BY: PREPARED
Dennis Swink, City Controller Angel F. Pa na, Revenue Services Supervisor
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SUBMITTED BY: P V BY:—
Thomas m n, sis nt Ci anager/Finance Director Maria . Smiths ?, City Treasurer
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City of West Covina Portfolio Details
November 30, 2011
AVERAGE
11 /30/2011
10/31 /2011
INVESTMENT
INVESTMENT
ISSUER
MATURITY
PURCHASE
DAYS TO
CUSIP
RATE
YIELD
COST
PAR
MARKET
I
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
11,853,837.45
11,883,649.05
1621 10,199,962,50
9,555,000.00
11,853,837.45
11,883,649.05
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
4,075,470.00
4,098,930.00
1450 3,688,593.75
3,000,000.00
4,075,470.00
4,098,930.00
1992-04-20 LACIP LOS ANGELES COUNTY TREASURER 04/20/92 531 N/A 1.180 1.180 13,889,824.20
13,889,824.20
13,889,824.20
13,889,824.20
1989-10-19 LAIF STATE OF CALIFORNIA 10/19/89 220
N/A 0.401 0.401
13,941,671.65
13,941,671.65
13,941,671.65
13,941,671.65
813
TOTALS:
41,720,052.10
40,386,495.85
43,760,803.30
43,814,074.90
' 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.
Note: The Wells Fargo Sweep account was not included in the calculation of average maturity.
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