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HomeMy WebLinkAbout10/21/2025 07.B. 2025 3rd Quarter Treasury Report `y3ljlt r:- i 11:171-rr i!! s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.B. For Meeting of: October 21, 2025 ITEM TITLE: 2025 3rd Quarter Treasury Report SUBMITTED BY: Craig Warner, Director of Finance and Budget Kimberly Domine, Financial Services Manager SUMMARY EXPLANATION: The Treasury Report for the third quarter of 2025 is attached and consists of the following: • 3rd Quarter Treasurer's Report • Cash and Investments • Long Term Debt • Interfund Borrowing ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Review only. Submitted for routine transparency and accountability purposes. ATTACHMENTS: 2025_Q3_Treasu ry_Report.pdf 14 f,„.„...„..;.,...„..„.‘,....,,,‘„,„ ,,,,. Itt, ..'41 FINANCE Date: October 2, 2025 '.WPTA CERTIFICATE Of cELLENCE To: Mayor and City Council CITYQE YAKIMA 1024 Thru: Victoria Baker, City Manager "' "'_ From: Craig Warner, Director of Finance and Budget Kimberly Domine, Financial Services Manager Re: 2025— 3rd Quarter Treasury Report This report is to transparently report on the City's cash position and investment activity for the quarter just ended. Each investment is in compliance with the City's Investment Policy, State Statues and City Municipal Code. The City's investment policy was reviewed and approved by City Council on March 5, 2019, and adopted by ordinance on February 1, 2022; and the policy received a Certification of Excellence from the Washington Public Treasurer's Association in February 2019 and again in April 2024. Total Cash and Investments at Quarter-end total $156 million: $22.4 million in depository banks, $58.4 million in the State Pool, and $75.0 million invested. The following chart shows the 5-year trend of total cash and investments month by month (showing only permanent accounts comparable year over year). City of Yakima Liquidity Accounts-Historical Trend $180,000,000 $160,000,000 so $140,000,000 .--i----1^ '— ___\ ` i'i, lost iii — $100,OOO,0O0 ' $80,000,000 $60,000,000 g $40,000,000 iI--dr ir- $20,000,000 'L° v° "4' 17 7, 'L''' a' ti' titi titi ,0 a: V a, '6 7, a?? a, 1, a?' N I*�,�Cv> Ld ,VA i" ti`' a'`' .yh 90 ? , .'4' 40. N� ,e ad° .,,�:. 4:^ 40 N•3 49 , � 4,4 4,aa ' cP 1 yac 4P4' t. -,i' A �yd ` 41f ,�" 52 •Portfolio(par) ❑Primary Acct •Key Checking ❑USB Checking 15 FINANCE The City's Investment Portfolio The City's investment activities are governed by State regulations and the City of Yakima's Investment Policy. All investments are in full compliance with the City's Investment Policy, State Statues and City Municipal Code. Calls or Maturities. During last quarter, the following matured or were called at full value: • 1576 $2,000,000 US Treasury matured 7/31/2025, yield 2.78% • 1578 $2,000,000 FNMA matured 8/25/2025, yield 2.87% • 1604 $1,000,000 FHLB matured 9/12/2025, yield 5% • 1569 $1,000,000 US Treasury matured 9/30/2025, yield .74% Purchases: During the last quarter, the following were purchased: • 1624 $1,000,000 BNY Mellon to mature 10/30/2028, yield 3.9% • 1626 $1,000,000 US Treasury to mature 10/31/2028, yield 3.45% • 1622 $1,000,000 Wells Fargo to mature 12/01/2028, yield 4.57% • 1623 $275,000 King County Municipal to mature 12/01/28, yield 4.05% • 1625 $1,000,000 PACCAR to mature 1/31/29, yield 3.90% • 1627 $1,000,000 US Treasury to mature 1/31/29, yield 3.46% Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: 3.54% LGIP State Pool 30-day yield: 4.29% Weighted average maturity of City investments, excluding LGIP: 333 days Weighted average maturity of LGIP State Pool 30-day yield: 39 days Execution of each investment transaction contemplated ongoing cash flows from city operations, debt obligations, liquid and maturing securities, and contingencies to meet the City's future cash flow requirements. The City's Investment Portfolio consists of three general tiers which coincide with the primary considerations of prudent investing: 1) The Safety portion of the Portfolio consists of funds invested in the Local Government Investment Pool (LGIP, or State Pool) managed by the State Treasurer, available on the same day. This allows for seasonal fluctuations, primarily the April/October inflows of Property Tax and the outflows of debt service and capital projects. 2) The Liquidity portion of the Portfolio consists of demand deposit (checking) accounts at banks which are qualified public depositaries, protected above FDIC-insured balances through the actions of the Washington State Public Deposit Protection Commission (PDPC). 3) The Yield portion of the Portfolio consists of a diversified portfolio of Agencies, Treasuries and/or other authorized investments with staggered maturities of up to five years. Based 2 16 FINANCE on analysis of historical cash reserves and budgetary planning, this segment will not be subject to seasonal spending and continues to be safely invested long-term. Current Rates. As of September 30, 2025, the fixed income market continues to drop with the 1- year treasury earning 28 bases points less than last quarter yielding 3.68% and 3.96% respectively. The 30-day yield of the State Pool dropped from last quarter from 4.37% to 4.29% with the Weighted Average to maturity increases from 27 to 39 days. Economic Outlook. The Fed's cut rates by a 1/4 percent in September and see more rate cuts in the remainder of 2025 than they did previously—a shift that suggests they are growing increasingly worried about the economic outlook and the weakening labor market. The Fed's will most likely make those cuts in the last two meetings of the year, In October and December. Strategy Notes. The City of Yakima's investments are not typically actively traded, meaning that no attempt to "buy low and sell high" or "time the market" is made. Investments purchased with the intent of providing investment income are intended to be held to maturity, relying on following a prudent course of action for income rather than predicting market direction. Actual % Policy % LGIP 58,397;658 44% 100% Treasuries 32,000;000 24% 10090 Agencies 35,000,000 26% 100% Municipals 275;000 0% 15% Corporates 8;000;000 6% 15% 133.672.658 100% Debt Activity All debt payments were paid out as scheduled. A comprehensive city-wide debt report is attached with current balances. Interfund Borrowings and Investments Borrowing between funds is temporary in nature, reviewed periodically by staff and Council, amended as circumstances change. Currently there are three Interfund Loans. The first loan is to help with the Mill Site Project. It was determined that the Mill Site needed more than the original amount loaned so an increase was given with the payment schedule extended to three years and aligned with the LIFT revenues that are received annually. This loan has been retired and a new smaller loan has taken its place. It's essential to keep some debt on the books to ensure LIFT Match eligibility. The second loan is to help cash flow the Nelson Dam Project. This interfund loan is for three years with monthly payments that started January 2023 and is due to be paid in full September 2025. It was determined that the Nelson Project needed more than the original amount loaned so an increase was given with payment schedule extended out an additional two years. There was a third emergency cash loan dated May 30th to the MLK Pool to help with cash flow due to the timing of donation receipts. 3 17 City of Yakima Cash and Investment Summary September 30, 2025 Current Prior Quarter Prior Year Description 9/30/2025 6/30/2024 9/30/2024 Cash Balances on Hand in Banks 22,377,912.24 $ 28,276,477 $ 23,481,984 Local Government Investment Pool (LGIP) 58,397,658 50,801,568 50,087,911 Investment Portfolio 75,275,000 76,000,000 76,010,000 Total Investments 133,672,658 126,801,568 126,097,911 Total Cash and Investments $ 156,050,570 $ 155,078,045 $ 149,579,895 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 6/30/2024 & Deposits Reinvested & Withdrawals 9/30/2025 Local Government Investment Pool (LGIP) $ 50,801,568 $ 7,000,000 $ 596,090 $ - $ 58,397,658 Investment Portfolio 76,000,000 5,275,000 - (6,000,000) 75,275,000 Total Investments $ 126,801,568 $ 12,275,000 $ 596,090 $ (6,000,000) $ 133,672,658 Page 1 of 8 2025 Q3 TSO spreadsheet 18 City of Yakima Distribution of Cash and Investments as of 9/30/2025 Depository Banks, $22,377,912 , 14% Investment Portfolio, 75,275,000 , 48% Local Government Investment Pool, $58,397,658 , 38% Page 2 of 8 19 City of Yakima Investment Portfolio-Inventory by Agency September 30, 2025 Expected Days to Call Most Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch Next Call Likely Call US T 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 31 1,993,435 NC Aaa NA AAAu NC 10/31/25 FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 56 1,995,900 NC Aaa AA+ AA+ NC 11/25/25 UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 92 1,981,875 NC Aaa NA AAAu NC 12/31/25 UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 123 1,990,521 NC Aaa NA AAAu NC 1/31/26 US T 1584 912828P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 138 1,982,799 NC Aaa NA AAAu NC 2/15/26 FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 164 2,002,378 NC Aaa AA+ NA NC 3/13/26 FNMA 1583 3135GOK36 2,000,000 1,880,612 2.125 4.040 12/13/22 4/24/26 206 1,981,407 NC Aaa AA+ AAA NC 4/24/26 UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 243 1,959,578 NC Aaa NA AAAu NC 5/31/26 FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 255 2,000,785 NC Aaa AA+ NA NC 6/12/26 FFCB 1590 3133EPPE9 2,000,000 1,975,386 4.375 4.840 8/29/23 7/6/26 279 2,012,257 NC Aaa AA+ AA+ NC 7/6/26 US T 1592 91282CHU8 2,000,000 1,987,798 4.375 4.610 11/9/23 8/15/26 319 2,010,264 NC Aaa NA AAAu NC 8/15/26 FAMCA 1591 31422X6U1 2,000,000 1,987,142 4.625 4.860 9/22/23 9/8/26 343 2,016,290 NC NA NA NA NC 9/8/26 FFCB 1593 3133EJM97 2,000,000 1,917,609 3.350 4.860 11/14/23 10/30/26 395 1,991,429 NC Aaa AA+ AA+ NC 10/30/26 FHLB 1594 3130AXU63 1,000,000 1,008,210 4.625 4.322 12/14/23 11/17/26 413 1,010,806 NC Aaa AA+ NA NC 11/17/26 FAMCA 1595 31424WCQ3 2,000,000 2,024,358 4.500 4.060 12/15/23 12/4/26 430 2,016,884 NC NA NA NA NC 12/4/26 FFCB 1596 3133EPW76 2,000,000 1,995,234 3.875 3.960 1/19/24 1/19/27 476 2,003,010 NC Aaa AA+ AA+ NC 1/19/27 FFCB 1597 3133EP2T1 2,000,000 2,000,000 4.125 4.125 2/12/24 2/12/27 500 2,009,728 NC Aaa AA+ AA+ NC 2/12/27 FFCB 1598 3133EJGF0 2,000,000 1,928,336 3.125 4.420 3/21/24 3/15/27 531 1,983,712 NC Aaa AA+ AA+ NC 3/15/27 FAMCA 1599 31424WHG0 2,000,000 1,996,686 4.800 4.860 4/17/24 4/16/27 563 2,031,996 NC Aaa NA AAAu NC 4/16/27 UST 1600 91282CET4 2,000,000 1,878,000 2.625 4.751 4/17/24 5/31/27 608 1,966,172 NC Aaa NA AAAu NC 5/31/27 FHLB 1603 3130B1EF0 2,000,000 2,007,569 4.625 4.490 5/16/24 6/11/27 619 2,027,144 NC Aaa NA AAAu NC 6/11/27 UST 1606 91282CFB2 2,000,000 1,902,188 2.750 4.450 6/21/24 7/31/27 669 1,967,813 NC Aaa NA AAAu NC 7/31/27 US T 1607 9128282R0 2,000,000 1,885,781 2.250 4.260 7/24/24 8/15/27 684 1,949,531 NC Aaa NA AAAu NC 8/15/27 FHLB 1608 3130ATS40 2,000,000 2,031,865 4.375 3.820 8/13/24 9/10/27 710 2,024,421 NC Aaa AA+ AA+ NC 9/10/27 FNMA 1609 3135G05Y5 2,000,000 1,820,340 0.750 3.800 8/13/24 10/8/27 738 1,886,897 NC Aaa NA AAAu NC 10/8/27 FHLB 1610 3130AMHV7 2,000,000 1,885,600 1.500 3.433 9/25/24 11/18/27 779 1,905,396 NC Aaa NA AAAu NC 11/18/27 UST 1611 91282CBB6 2,000,000 1,829,908 0.625 3.400 9/25/25 12/31/27 822 1,870,938 NC Aaa NA AAAu NC 12/31/27 UST 1612 91282CBJ9 2,000,000 1,808,218 0.750 3.900 10/23/24 1/31/28 853 1,873,047 NC Aaa NA AAAu NC 1/31/28 UST 1613 91282CBP5 2,000,000 1,810,965 1.125 4.240 11/18/24 2/29/28 882 1,886,172 NC Aaa NA AAAu NC 2/29/28 UST 1614 91282CBS9 2,000,000 1,829,448 1.250 4.020 12/4/24 3/31/28 913 1,886,719 NC Aaa NA AAAu NC 3/31/28 FHLB 1615 3130ALYS7 1,000,000 919,138 1.750 4.420 1/13/25 4/26/28 939 955,001 NC Aaa AA+ NA NC 4/26/28 FHLB 1616 3130ALZZ0 1,000,000 926,589 2.000 4.420 1/13/25 4/28/28 941 958,132 NC Aaa AA+ NA NC 4/28/28 UST 1617 91282CHE4 2,000,000 1,951,875 3.625 4.416 2/13/25 5/31/28 974 1,999,531 NC Aaa NA AAAu NC 5/31/28 WMT 1618 931142EE9 2,000,000 1,980,560 3.700 4.020 3/25/25 6/26/28 1,000 1,998,973 MW Aa2 AA+ AA 3/26/28 6/26/28 J Deere 1619 24422EXB0 2,000,000 2,058,940 4.950 3.960 4/30/25 7/14/28 1,018 2,053,399 NC Al A A+ NC 7/14/28 UST 1620 91282CHX2 2,000,000 2,025,489 4.375 3.955 5/20/25 8/31/28 1,066 2,039,922 NC Aaa NA AAAu NC 8/31/28 Toyota 1621 89236TLB9 1,000,000 1,036,580 5.250 4.020 6/27/25 9/11/28 1,077 1,034,429 NC Al A+ A+ NC 9/11/28 BNWM 1624 06406GAA9 1,000,000 973,334 3.000 3.900 8/27/25 10/30/28 1,126 968,777 MW A2 A- A 7/30/28 10/30/28 US T 1626 91282CDF5 1,000,000 939,100 1.375 3.452 9/18/25 10/31/28 1,127 934,648 NC Aaa NA AAAu NC 10/31/28 WFC 1622 33738MAB7 1,000,000 1,059,640 6.500 4.570 7/14/25 12/1/28 1,158 1,057,877 NC Aa3 NA A NC 12/1/28 King GO 1623 49474FF96 275,000 254,708 1.690 4.047 7/14/25 12/1/28 1,158 258,148 MW Aaa AAA AAA NC 12/1/28 UST 1627 91228CDW8 1,000,000 946,000 1.750 3.463 9/18/25 1/31/29 1,219 940,313 NC Aaa NA AAAu NC 1/31/29 PACCAR 1625 69371RS80 1,000,000 1,022,210 4.600 3.900 8/27/25 1/31/29 1,219 1,019,067 NC Al A+ NA NC 1/31/29 Subtotal 43 75,275,000 72,693,593 Avg. 74,437,516 LGIP LGIP NA 58,397,658 58,397,658 4.600 4.60% NA NA 14 58,397,658 NC NA NA NA NA NA Grand Totals $133,672,658 $ 131,091,250 3.66% 339 $ 132,835,174 Page 3 of 8 2025 Q3 TSO spreadsheet 20 City of Yakima Investment Portfolio by Issuer at 09/30/2025 Agencies, 35,000,000, 26% Municipals, 275,000, 0% Corporates, 8,000,000, 6% Treasuries, 32,000,000, 24% LGIP, 58,397,658, 44% Diversifying by issuer reduces the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations which can vary by issuer. Page 4 of 8 2025 Q3 TSO spreadsheet 21 Page 5 of 8 City of Yakima Investment Portfolio Maturity Distribution at 9/30/2025 $5,000,000 $4,500,000 Diversifying by maturity reduces the re-investment risk $4,000,000 the city is subject to in any given month when an $3,500,000 investment matures and the principal is reinvested at rates $3,000,000 available at that moment. $2,500,000 $2,000,000 $1, ,000 0 $1,000500,000 $500,000 •- Id $0 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N +' > cal C > C 80 Q a"' > C) C ? C 80 Q a"' > C) C ?• C - 80 Q +' > C) U O N f0 N f0 O- f0 7 - 7 U) U O N f0 N f0 O- f0 7 - 7 N U O N f0 N f0 O- f0 7 - 7 U) U O , (' o z o � g a g a � o z o � g a g a � 020 o � g a g a � o z o Page 5 of 8 2025 Q3 TSO spreadsheet 22 City of Yakima Investment Portfolio-Detail of Activity September 30,2025 Beginning Additions and Calls and Ending Agency Inv# Face Value Purchases Maturities Face Value Farmer Mac FAMCA 1591 2,000,000 2,000,000 FAMCA 1595 2,000,000 2,000,000 FAMCA 1599 2,000,000 2,000,000 FAMCA Total 6,000,000 - - 6,000,000 Federal Farm Credit Bureau FFCB 1579 2,000,000 2,000,000 FFCB 1590 2,000,000 2,000,000 FFCB 1593 2,000,000 2,000,000 FFCB 1596 2,000,000 2,000,000 FFCB 1597 2,000,000 2,000,000 FFCB 1598 2,000,000 2,000,000 FFCB Total 12,000,000 - - 12,000,000 Federal Home Loan Bank FHLB 1587 2,000,000 2,000,000 FHLB 1589 2,000,000 2,000,000 FHLB 1594 1,000,000 1,000,000 FHLB 1603 2,000,000 2,000,000 FHLB 1604 1,000,000 (1,000,000) - FHLB 1608 2,000,000 2,000,000 FHLB 1610 2,000,000 2,000,000 FHLB 1615 1,000,000 1,000,000 FHLB 1616 1,000,000 1,000,000 FHLB Total 14,000,000 - (1,000,000) 13,000,000 Municiple Bonds King County Muni 1623 275,000 275,000 Municiple Bonds - 275,000 - 275,000 Federal National Management Association FNMA 1578 2,000,000 (2,000,000) - FNMA 1583 2,000,000 2,000,000 FNMA 1609 2,000,000 2,000,000 FNMA Total 6,000,000 - (2,000,000) 4,000,000 US Treasury US Treasury - - US Treasury 1569 1,000,000 (1,000,000) - US Treasury - - US Treasury 1576 2,000,000 (2,000,000) - US Treasury 1580 2,000,000 2,000,000 US Treasury 1581 2,000,000 2,000,000 US Treasury 1582 2,000,000 2,000,000 US Treasury 1584 2,000,000 2,000,000 US Treasury 1588 2,000,000 2,000,000 US Treasury 1592 2,000,000 2,000,000 US Treasury 1600 2,000,000 2,000,000 US Treasury 1606 2,000,000 2,000,000 US Treasury 1607 2,000,000 2,000,000 US Treasury 1611 2,000,000 2,000,000 US Treasury 1612 2,000,000 2,000,000 US Treasury 1613 2,000,000 2,000,000 US Treasury 1614 2,000,000 2,000,000 US Treasury 1617 2,000,000 2,000,000 US Treasury 1620 2,000,000 2,000,000 US Treasury 1626 1,000,000 1,000,000 US Treasury 1627 - 1,000,000 1,000,000 US Treasury 33,000,000 2,000,000 (3,000,000) 32,000,000 Corporate Notes Walmart 1618 2,000,000 2,000,000 J Deere 1619 2,000,000 2,000,000 Toyota 1621 1,000,000 1,000,000 Bank NYM 1624 1,000,000 1,000,000 Wells Fargo 1622 1,000,000 1,000,000 PACCAR 1625 1,000,000 1,000,000 Corporate Total 5,000,000 3,000,000 - 8,000,000 Subtotal 76,000,000 5,275,000 (6,000,000) 75,275,000 Other Investments - - - - LGIP(State Pool) LGIP 50,801,568 7,596,090 - 58,397,658 Other Investment Totals 50,801,568 7,596,090 - 58,397,658 (Grand Totals $ 126,801,568 $ 12,871,090 $ (6,000,000) $ 133,672,658 Page 6 of 8 2025 Q3 TSO spreadsheet 23 City of Yakima Long Term Debt Schedule-by Project Group September 30,2025 Date Issued Maturity Description Note Amount of Issue Current Balance General Obligation Bonds 6/20/2013 12/1/2028 Street Project Demonstration(Refunded) Various City street improvements 3,500,000 1,297,046 9/24/2018 6/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,106,795 9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,656,667 4/21/2020 12/1/2032 2020B Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 3,210,000 4/21/2020 12/1/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 10,925,000 4/21/2020 12/1/2044 2020B Convention Center Addition III Refu 2020B Convention Center Addition III Refunded 2,495,000 2,160,000 Subtotal General Obligation Bonds 35,975,000 28,355,509 Certificate of Participation-State of Washington 9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,683 220,382 7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project(lighting) 1,415,000 1,055,000 9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 303,202 Subtotal Certificates of Participation 3,604,736 1,578,584 Revenue Bonds 4/21/2020 12/1/2034 2020 Ref 04 Irrigation 2020 Ref 04 Irrigation 3,260,000 2,330,000 4/21/2020 12/1/2027 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 1,085,000 Subtotal Revenue Bonds 5,850,000 3,415,000 Intergovernmental Loans 8/14/2009 7/1/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 495,301 5/6/2010 6/1/2034 L1000030-0 2010 Railroad Grade Separation 1,229,295 664,208 6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 920,000 6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 204,315 7/17/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 229,307 3/2/2021 6/1/2032 21 Yak Co Seid-SOZO 2021 Yakima Co SEID Loan SOZO 1,000,000 746,415 3/14/2023 6/1/2035 22 Yak Co Seid-Russell Lane 2023 Yak Co Seid-Russell Lane 416,000 416,000 12/15/2023 6/1/2036 23 Yak Co Seid-Chief Hops 2023 Yak Co Seid-Chief Hops 312,500 312,500 6/27/2005 10/1/2025 SRF-04-65104-037 2005 Naches River WTP Filter Rehab 894,380 47,073 12/30/2005 6/1/2025 PW-05-691-064 2005 River Road Sewer 2,307,000 - 4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 242,778 4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 363,446 10/10/2011 3/31/2033 L1100008 2011 Energy Efficiency 516,192 233,975 8/1/2011 7/1/2034 L1200019 2012 Industrial Waste Anaerobic 587,173 314,226 6/1/2012 6/1/2031 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 1,614,475 10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 976,077 8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 1,842,105 12/31/2021 6/1/2039 PC20-96103-044 2020 Waterline Improvements 1,737,906 1,351,705 12/12/2013 10/1/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 1,757,400 Subtotal Intergovernmental Loans 35,188,947 12,731,306 Grand Total 80,618,683 46,080,399 Page 7 of 8 2025 Q3 TSO spreadsheet 24 City of Yakima Interfund Borrowing September 30,2025 Original Beginning Ending Description Balance Balance Issued Retired Balance Millsite 1,800,000.00 172,177.74 172,177.74 - Millsite #3 176,000.00 176,000.00 176,000.00 Nelson Dam 6,299,691.00 2,466,638.49 549,971.91 1,916,666.58 MLK Pool 250,000.00 250,000.00 - 250,000.00 Total across all funds 8,525,691.00 2,888,816.23 176,000.00 722,149.65 2,342,666.58 Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow. Page 8 of 8 2025 Q3 TSO spreadsheet 25 tom' FINANCE Committee Review of Investment Rationale Date: July 11, 2025 Investment # 2025-1622 is a 30-year Wells Fargo Bank Bond, face value $1,000,000, maturing December 01, 2028, 6.50% coupon, purchased at 105.964 to yield 4.573685. This trade settles on July 14, 2025, with Hilltop Securities, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2025. Liquidity: On June 30th, month-end, Key Bank checking account balance was $15.1 million, US Bank checking balance was $11.7. million, and the investment portfolio was $76.0 million (Treasuries, Corporates and Agencies). Current LGIP balance was $50.8 million. Safety: This purchase is a debt issue of Wells Fargo Bank. and is rated Aa3/A by Moody's and Fitch. Yield. Yield is 4.57. This investment is 18 basis points over LGIP and 58 bases point over the 5-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 4.3862% www.secureaccess.wa.gov 5-year Treasury 3.9900% Treasury.gov 3-year Treasury 3.8600% Treasury.gov Callability. This investment is not callable. Diversification. This purchase brings this issuer to 1% of the total portfolio. This investment adds a maturity date not previously covered in the City's laddered portfolio and adds a corporate bond into the mix. Outlook. While the Fed has been in a holding pattern, many analysts predict a rate cut in the latter half of the year, with some expecting it to begin as early as September with a second cut in December. Investment Committee r view: Finance Director: i Date 7!/S/1 City Manage . Date 26 �fK I ..„.„ ;.7 FINANCE Committee Review of Investment Rationale Date: July 11, 2025 Investment#2025-1623 is a 7-year King County Municipal Bond, face value$275,000, maturing December 01, 2028, 1.69% coupon, purchased at a deep discount of 92.62 to yield 4.0470. This trade settles on July 14, 2025, with Hilltop Securities, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2025. Liquidity: On June 30th, month-end, Key Bank checking account balance was $15.1 million, US Bank checking balance was $11.7. million, and the investment portfolio was $76.0 million (Treasuries, Corporates and Agencies). Current LGIP balance was $50.8 million. Safety: This purchase is a debt issue of King County, Washington and is rated AAA/Aaa/AAA by S & P, Moody's and Fitch. Yield. Yield is 4.0470. This investment is 34 basis points under LGIP and 6 bases point over the 5-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 14.3862% www.secureaccess.wa. ov 5-year Treasury 13.9900% Treasury.gov 3-year Treasury 3.8600% Treasury.gov Callability. This investment has a make whole call at par or treasury rate plus 10 bps. Diversification. This purchase brings this issuer to <1% of the total portfolio. This investment adds a Municipal General Obligation Bond into the mix. This particular bond is a social bond which means it had to hit specific parameters to receive this designation which looks good in a portfolio. Outlook. While the Fed has been in a holding pattern, many analysts predict a rate cut in the latter half of the year, with some expecting it to begin as early as September with a second cut in December. Investment Committee review: Finance Director: L77i7j t,:! Date City Manag r: _ - Date 27 C.., CI FINANCE Committee Review of Investment Rationale Date: August 26, 2025 Investment # 2025-1624 is a 12-year Bank of New York Mellon Bond, face value $1,000,000, maturing October 30, 2028, 3.00% coupon, purchased at a discount of 97.33 to yield 3.9000. This trade settles on August 27, 2025, with KeyBanc Capital Markets, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by called maturities during 2025. Liquidity: On July 31st, month-end, Key Bank checking account balance was$12.6 million, US Bank checking balance was $11.8. million, and the investment portfolio was $75.3 million (Treasuries, Corporates and Agencies). Current LGIP balance was $54.0 million. Safety: This purchase is a debt issue of Bank of New York Mellon and is rated A-/A2/A by S & P, Moody's and Fitch. Yield. Yield is 3.90. This investment is 48 basis points under LGIP and 10 bases point over the 5-year treasury, and 22 bases points over the 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield l..3812% www.secureaccess.wa.gov 5-year Treasury 3.8000% Treasury.gov 3-year Treasury 3.6800% _ Treasury.gov Callability. This investment has a call date of July 30, 2028, at par plus 7.5 bps. Diversification. This purchase brings Corporate Notes to 6% of the total portfolio. Outlook. The US economic outlook for 2025 is generally optimistic, with forecasts anticipating steady GDP growth, declining inflation, and a stable labor market. Key factors influencing this outlook include the expected transition from restrictive to less restrictive monetary policy by the Federal Reserve and the impact of potential tariffs on economic activity and inflation. Overall, the economy is seen as rebalancing after pandemic-related imbalances, with a low risk of recession. Investment Committee review: (<7 Finance Director: -- 727 1�- Date g/L7 fA �7 LCity Manager: L6 �! '` 6 _ Date staresi. 28 j,...Aril1117‘ FINANCE Committee Review of Investment Rationale Date: August 26, 2025 Investment# 2025-1625 is a 5-year PACCAR Financial Corporation Bond, face value $1,000,000, maturing January 31, 2029, 4.60% coupon, purchased at a premium of 102.221 to yield 3.9000. This trade settles on August 27, 2025, with Time Value Investments, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by called maturities during 2025. Liquidity: On July 31st, month-end, Key Bank checking account balance was$12.6 million, US Bank checking balance was $11.8. million, and the investment portfolio was $75.3 million (Treasuries, Corporates and Agencies). Current LGIP balance was $54.0 million. Safety: This purchase is a debt issue of PACCAR Financial Corporation and is rated A+/A1 by S & P and Moody's. Yield. Yield is 3.90. This investment is 48 basis points under LGIP and 10 bases point over the 5-year treasury, and 22 bases points over the 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 4.3812% www.secureaccess.wa.gov 5-year Treasury 3.8000% Treasury.gov 3-year Treasury 3.6800% Treasury.gov Callability. This investment not callable. Diversification. This purchase brings Corporate Notes to 6% of the total portfolio. Outlook. The US economic outlook for 2025 is generally optimistic, with forecasts anticipating steady GDP growth, declining inflation, and a stable labor market. Key factors influencing this outlook include the expected transition from restrictive to less restrictive monetary policy by the Federal Reserve and the impact of potential tariffs on economic activity and inflation. Overall, the economy is seen as rebalancing after pandemic-related imbalances, with a low risk of recession. Investment Committee review: Finance Director: . i7 ice---- Date d/z745— ,Lef„,/,..1._____ n ��jJ(� City Manager: / - L� Date i t .5, 29 r S f yy FINANCE Committee Review of Investment Rationale Date: September 18, 2025 Investment # 2025-1626 is a 7-year US Treasury, face value $1,000,000, maturing October 30, 2028, 1.38% coupon, purchased at a deep discount of 93.91 to yield 3.452346. This trade settles on September 18, 2025, with KeyBanc Capital Markets, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by called maturities during 2025. Liquidity: On August 31st, month-end, Key Bank checking account balance was $15.0 million, US Bank checking balance was $7.5. million, and the investment portfolio was $75.3 million (Treasuries, Corporates and Agencies). Current LGIP balance was $54.2 million. Safety: This purchase is a debt issue of the Federal Government, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 3.4523. This investment is 91 basis points under LGIP and 17 bases point under the 5-year treasury, and 6 bases points under the 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 4.3668% www.secureaccess.wa.gov 5- ear Treasu 3.6200% Treasury.gov 3-year Treasury 3.5100% Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 25% of total portfolio. Outlook. The Fed's cut rates by a '/4 percent this month and see more rate cuts in the remainder of 2025 than they did previously—a shift that suggests they are growing increasingly worried about the economic outlook and the weakening labor market. The Fed's will most likely make those cuts in the last two meetings of the year, In October and December. Investment Committee review: Finance Director: (--2kJ Date 4074c- City Manage : ., / i Date 30 FINANCE Committee Review of Investment Rationale Date: September 18, 2025 Investment # 2025-1627 is a 7-year US Treasury, face value $1,000,000, maturing January 31, 2029, 1.75% coupon, purchased at a deep discount of 94.60 to yield 3.462542. This trade settles on September 18, 2025, with KeyBanc Capital Markets, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by called maturities during 2025. Liquidity: On August 31st, month-end, Key Bank checking account balance was $15.0 million, US Bank checking balance was $7.5. million, and the investment portfolio was $75.3 million (Treasuries, Corporates and Agencies). Current LGIP balance was $54.2 million. Safety: This purchase is a debt issue of the Federal Government, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 3.4625. This investment is 90 basis points under LGIP and 16 bases point under the 5-year treasury, and 5 bases points under the 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 4.3668% www.secureaccess.wa.gov 5-year Treasury 3.6200% Treasury.gov 3-year Treasury 3.5100% 1 Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 25% of total portfolio. Outlook. The Fed's cut rates by a 1/4 percent this month and see more rate cuts in the remainder of 2025 than they did previously—a shift that suggests they are growing increasingly worried about the economic outlook and the weakening labor market. The Fed's will most likely make those cuts in the last two meetings of the year, In October and December. Investment Committee review: Finance Director: Date . City Manage . 7Date 31