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02-05-2019 - AGENDA ITEM 03 SUCCESSOR AGENCY INVESTMENT REPORT FOR THE MONTH ENDED NOVEMBER 30, 2018AGENDA ITEM NO.3 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: February 5, 2019 TO: Mayor and City Council FROM: Chris Freeland City Manager SUBJECT: SUCCESSOR AGENCY INVESTMENT REPORT FOR THE MONTH ENDED NOVEMBER 30, 2018 RECOMMENDATION: It is recommended that the Chair and Board Members of the Successor Agency to the former West Covina Redevelopment Agency, receive and file the Investment Report for the month ended November 30, 2018. DISCUSSION: The Investment Report (Attachment No. 1) presents the Successor Agency's cash and investments for the month ended November 30, 2018. This report is in compliance with California Government Code Section 53646 regarding the reporting of detailed information on all securities, investments, and monies of the Successor Agency, as well as, reporting of the market value of the investments held. The Investment Policy of the City of West Covina also applies to the Successor Agency to the former West Covina Redevelopment Agency. All of the investments contained within the portfolio are in full compliance with Government Code Section 53601 and the City's Investment Policy as to the types of investments allowed. The Investment Policy was last revised and adopted by City Council on June 5, 2018. As stated in the attached report, there are sufficient funds to meet the budgeted expenditures over the next six months. The Investment Policy has set primary goals of the portfolio management of safety, liquidity and yield. The Successor Agency's surplus funds are in the Los Angeles County Investment Pool (LACIP) which is completely liquid, as the Successor Agency can withdraw them at any time. At November 30, 2018, the Successor Agency's investment portfolio had a market value of $7,661,695. Bond reserves are held and invested by a Trustee. The investment of these funds is governed by an investment policy approved by the City Council as a part of the governing documents for each specific bond issue. At November 30, 2018, the Successor Agency's bond reserves had a market value of $5,584,568. Prepared by: Todd H. Owens, Accounting Manager Additional Approval: Marcie Medina, Finance Director Fiscal Impact FISCAL IMPACT: No Fiscal Impact. Attachments November 2018 SA Investment Report ATTACHMENT NO. 1 West Covina Successor Agency Investment Report For the Month Ended November 30, 2018 mreresu Yield to Maturity % of Description Book Value Market Value Maturity Date Portfolio Cash and Cash Equivalents Wells Fargo Checking Account- Successor Agency $ 36,767 $ 36,767 0.00% n/a 0.28% Wells Fargo Checking Account -CFD 357,027 357,027 0.00% n/a 2.70% Los Angeles County Investment Pool (LACIP) - Successor Agency 806,674 806,674 1.91 % n/a 6.08% Los Angeles County Investment Pool (LACIP) - CFD 6,461,227 6,461,227 1.91 % n/a 48.78 Total Cash and Cash Equivalents $ 7,661,695 $ 7,661,695 Debt Reserve Funds 1988 Housing Set -Aside Tax Allocation Bonds Series A & B Federal Treasury Obligations $ 403,179 $ 403,179 0.00% n/a 3.04% 1996 Special Tax Refunding Bonds Westdeutsche Landesbank Giromntrale Investment Agmt 5,002,670 5,002,670 7.01 % 9/1/2022 37.77% Income Cash 103 103 1.70% n/a 0.00% First American Treasury Obligations Fund Class D 178,616 178,616 1.70% n/a 1.35% Total Debt Reserve Funds $ 5,584,568 $ 5,584,568 Total Investment Portfolio $ 13,246,263 $ 13,246,263 100.00% Blended Yield of Cash and Cash Equivalents 1.91 Benchmarks: LAIF 2.21 % LACIP' 1.91% 6mo U.S. Treasury 2.52% 2yr U.S. Treasury 2.80 % 5yr U.S. Treasury 2.84% `To ensure timely submission of the Investment Report, the prior month's LACIP percentage yield is used. I hereby certify that the investments are in compliance with the investment policy adopted by the City Council. The investment portfolio provides sufficient funds to meet the budgeted expenditures over the next six months. This report meets the requirements of Government Code Section 53646. PREPARED BY: REVIE ED'BY: Todd H. Owens - Accounting Manager olleen B. Rozatti •City reas re APPROVED BY: / Marcie Medina - Finance Director