HomeMy WebLinkAbout05/21/2013 05C 2013 1st Quarter Treasury Report1
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.,",)(-,-,,
For Meeting of: 5/21/2013
ITEM TITLE: 2013 - 1 st Quarter Treasury Report.
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
SUMMARY EXPLANATION:
The Treasury Report for the first quarter of 2013 is attached and consists of the following:
1. Memo: Summary and Narrative
2. Reports
Cash and Investment Summary
Investment Portfolio - Detailed Inventory by Agency
Investment Portfolio - Detail of Activity
Bonded Debt Schedule
Schedule of Interfund Borrowings and Investments
Resolution:
Other (Specify): Report
Contract:
Start Date:
Item Budgeted:
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
Ordinance:
Contract Term:
End Date:
Amount:
City Manager
4:=IjftT &O.J,
Description
2013 Ql Treasury Narrative
2013 Ql Treasury Reports
Memorandum
To: The Honorable Mayor and Members of City Council
From: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
Date: May 21, 2013
Re: 2013 — 1 st Quarter Treasury Report: Summary and Narrative
The City's Investment Portfolio
The City's investment activities are governed by State regulations and the City of Yakima's
Investment Policy, as revised 9/06/11.
The City's Investment Portfolio can be divided into two general categories:
1) A Liquidity Portfolio of overnight investments. This category generally consists only of funds
invested in the Local Government Investment Pool (LGIP) managed by the State Treasurer.
2) An Investment Portfolio of time deposits and various securities with maturities normally not
to exceed five years except when conditions warrant, and then up to eight years.
The effective yield on the City's entire Investment Portfolio for the quarter ending 3/31/13 has
dipped slightly as predicted from 1.17% to 1.15 %. New investments are available only at dismal
rates of return and so the effective yield will likely continue to fall as it approaches market rates.
Very little change is expected in the coming year. The LGIP yield has continued to slide slowly
toward zero as can be expected. The LGIP is essentially an overnight pool so one cannot expect
much in this market. It yielded about 0.17% this quarter as opposed to 0.20% in the fourth quarter
of 2012. The LGIP is considered to be a very poor investment and is utilized solely for emergency
cash needs at this point. Overnight rates in our bank accounts yield a higher rate than LGIP and so
we have been maintaining larger balances there than we have done historically.
The security portfolio earned 1.22 %, again dropping slightly from 1.25% in the 4th quarter as higher
yielding securities continue to mature or be called and can only be replaced with securities that
have much lower yields. Unbelievably, the market yields are still lower than our portfolio averages.
Unfortunately this means that our callable securities will continue to be called and we will continue
to earn lower returns upon reinvestment. Activity has stabilized as indicated by the reduction in the
number of securities being called in the past 12 months. Only 7 of our current holdings are
anticipated to be called in 2013 as opposed to the 27 that were called during 2011.
The City's Bonded Debt Schedule
Changes to the Debt Schedule include the new financing through the State of Washington LOCAL
(Local Option Capital Asset Lending) program for the new Fire Apparatus. Due to a premium at
issue, the City only had to finance $310,000 to pay for $362,000 in equipment. Bonds issued at a
premium require the purchaser to pay an extra value roughly equal to the time - adjusted amount of
interest they will earn over the market rate at the time of purchase. Of course this also means that
the City will pay slightly more interest over the life of the bond issue in exchange for that premium. It
is neither good nor bad —just timing.
The first series of PFD Convention Center Bonds issued in 2007 were paid off last June and so that
debt has dropped off the Schedule.
May 21, 2013
Interfund Borrowings and Investments
Two funds, Emergency Services and Refuse were temporarily in a negative cash position at the
end of the first quarter. For a particular fund to be in a negative cash position for a few days or
weeks is not an unusual occurrence due to the uneven flows of revenues and expenditures
throughout the year, but especially in the first quarter. Certain fees and charges occur at the
beginning of the calendar year that will expire month by month as the year progresses. General
Fund loaned cash to these two funds during the first quarter. As per the City's Interfund Loan
Program, adopted earlier this year, the General Fund will begin to charge interest if the loan
continues more than one calendar quarter. Emergency Services is funded by Property Taxes, which
are mostly realized by the City in May and November. The cash balance dropped below zero on
February 28 and was fully recovered by May 10 with the Property Tax deposit. The negative cash
balance that developed on March 31 in Refuse was rectified after only a few days in early April.
City of Yakima
Cash and Investment Summary
March 31, 2013
Page 1 of 5 PDFConvert. 2631.1.TSO_Q1_2013_Reports.xlsx
Book Balance
Purchases
Interest
Percent of
Average
Average
Description
Qty
Par
Book
Portfolio
Yield Q4'12
Yield Q1'13
Cash Balances on Hand and in Banks
$ 1,622
NA
$ 11,052,542
NA
NA
NA
Local Government Investment Pool (LGIP)
1
$ 3,802,300
3,802,300
8%
0.20%
0.17%
Federal Agency Coupon and Discount
19
42,746,000
42,017,249
90%
1.25%
1.22%
Other Investments
2
750,000
815,490
1%
1.77%
1.77%
Total Invested
22
$ 47,298,300
$ 46,635,039
100%
1.17%
1.15%
Page 1 of 5 PDFConvert. 2631.1.TSO_Q1_2013_Reports.xlsx
Book Balance
Purchases
Interest
Maturities, Calls
Book Balance
Summary of Investment Activity
1/1/2013
& Deposits
Reinvested
& Withdrawals
3/31/2013
Local Government Investment Pool (LGIP)
$ 3,800,678
$ -
$ 1,622
$ -
$ 3,802,300
Federal Agency Coupon and Discount
40,023,853
3,993,396
-
2,000,000
42,017,249
Other Investments
815,490
-
-
815,490
Totals
$ 44,640,021
$ 3,993,396
$ 1,622
$ 2,000,000
$ 46,635,039
Page 1 of 5 PDFConvert. 2631.1.TSO_Q1_2013_Reports.xlsx
City of Yakima
Investment Portfolio - Inventory by Agency
March 31, 2013
Expected Call Most
Agency Inv# Face Value Price Coupon Step Yield Maturity Settle Next Call Type Likely Call
Federal Farm Credit Bank
CNTY 1442
500,000
565,490 5.000
1.631 7/1/15 8/19/11 7/1/15 NC 7/1/15
YF -CD 1447
FFCB 1462
2,000,000
2,000,000
1.290
1.290
9/25/18
9/25/12
9/25/13
Amer
9/25/13
FFCB Totals and Averag
2,000,000
2,000,000
$ 42,832,739
1.290
Federal Home Loan Bank
FHLB 1456
2,000,000
2,289,700
5.630
2.050
6/13/16
3/12/12
6/13/16
NC
6/16/16
FHLB 1466
2,000,000
1,998,940
1.150
1.263
7/25/18
2/6/13
7/25/13
Qrty
7/25/13
FHLB 1467
2,000,000
1,994,456
0.850
1.427
10/30/17
2/6/13
7/30/13
Qrty
7/30/13
FHLB Totals and Averag
6,000,000
6,283,096
1.602
Federal Home Loan Mortgage Corporation
FHLMC 1453
2,000,000
2,001,920
1.300
1.250
1/30/17
01/30/12
1/30/14
Qrty
1/30/14
FHLMC 1459
2,000,000
2,000,000
1.350
1.350
11/30.17
5/30.12
5/30/13
Qrty
5/30/13
FHLMC 1463
3,000,000
3,000,000
1.000
1.000
1/17/18
10/17/12
10/17/14
1x
10/17/14
FHLMC 1465
1,000,000
1,000,000
1.020
1.020
11/21/17
11/21/12
5/21/13
Qrty
5/21/13
FHLMC Totals and Ave
8,000,000
8,001,920
1.153
Federal National Management Association
FNMA 1445
4,000,000
4,000,000
1.420
1.420
9/20/16
9/20/11
9/20/13
1x
9/20/13
FNMA 1448
1,750,000
1,750,000
1.000
1.000
9/9/15
9/9/11
9/9/13
1x
9/9/13
FNMA 1452
1,000,000
1,000,000
0.850
0.850
12/5/14
12/5/11
12/5/13
1x
12/5/13
FNMA 1460
5,000,000
4,737,030
1.100
1.100
6/1/17
6/28/12
6/1/17
NC
6/1/17
FNMA 1461
2,000,000
2,008,310
0.900
0.760
9/27/16
6/28/12
3/27/14
1x
3/27/14
FNMA Totals and Aver:
13,750,000
13,495,340
1.113
Financing Corporation
FICO 1450
2,000,000
1,928,880
1.020
1.020
5/11/15
10/20/11
5/11/15
NC
5/11/15
FICO 1454
722,000
678,045
1.200
1.200
5/2/17
2/2/12
5/2/17
NC
5/2/17
FICO 1455
2,356,000
2,199,953
1.348
1.348
4/6/17
2/29/12
4/6/17
NC
4/6/17
FICO 1457
2,146,000
1,995,422
1.340
1.340
10/6/17
4/25/12
10/6/17
NC
10/6/17
FICO 1458
2,142,000
1,999,488
1.250
1.250
11/30/17
5/21/12
11/30/14
NC
11/30/14
FICO 1464
3,630,000
3,435,105
1.020
1.020
2/8/18
10/31/12
2/8/18
NC
2/8/18
FICO Totals and Averag
12,996,000
12,236,893
1.179
Other Investments
CNTY 1442
500,000
565,490 5.000
1.631 7/1/15 8/19/11 7/1/15 NC 7/1/15
YF -CD 1447
250,000
250,000 2.050
2.100 3/30/16 8/31/11 2/28/15 NC 2/28/15
Other Totals and Averag
750,000
815,490
1.775
Grand Totals $
43,496,000
$ 42,832,739
1.232 Average Expected Yield
Page 2 of 5 PDFConvert. 2631.1.TS0_Ql_2013_Reports.xlsx
City of Yakima
Investment Portfolio - Detail of Activity
Quarter Ending March 31, 2013
Yield Beginning Calls and Ending Date of
Agency Inv# Rate Face Value Purchases Maturities Face Value Activity
Federal Farm Credit Bureau
FFCB 1462 1.290 2,000,000 2,000,000
FFCB Totals
2,000,000
-
- 2,000,000
Federal Home Loan Bank
FHLB
1456
2.050
2,000,000
2,000,000
FHLB
1466
1.260
2,000,000
2,000,000 2/6/13
FHLB
1467
1.427
2,000,000
2,000,000 2/6/13
FHLB Totals
2,000,000
4,000,000
- 6,000,000
Federal Home Loan Mortgage Corporation
FHLMC
1438
2.000
2,000,000
(2,000,000) - 2/8/13
FHLMC
1453
1.250
2,000,000
2,000,000
FHLMC
1459
1.350
2,000,000
2,000,000
FHLMC
1463
1.000
3,000,000
3,000,000
FHLMC
1465
1.020
1,000,000
1,000,000
FHLMC Totals
10,000,000
-
(2,000,000) 8,000,000
Federal National Management Association
FNMA
1445
1.420
4,000,000
4,000,000
FNMA
1448
1.000
1,750,000
1,750,000
FNMA
1452
0.850
1,000,000
1,000,000
FNMA
1460
1.100
5,000,000
5,000,000
FNMA
1461
0.760
2,000,000
2,000,000
FNMA Totals
13,750,000
-
- 13,750,000
Financing Corporation
FICO
1450
1.020
2,000,000
2,000,000
FICO
1454
1.200
722,000
722,000
FICO
1455
1.348
2,356,000
2,356,000
FICO
1457
1.340
2,146,000
2,146,000
FICO
1458
1.250
2,142,000
2,142,000
FICO
1464
1.020
3,630,000
3,630,000
FICO Totals
12,996,000
-
- 12,996,000
Other Investments
Grays County Bonds
1442
5.000
500,000
500,000
Yakima Federal CD
1447
2.050
250,000
250,000
Other Investment Totals
750,000
-
- 750,000
Grand Totals
$ 41,496,000
$ 4,000,000
$ (2,000,000) $ 43,496,000
Page 3 of 5 PDFConvert. 2631.1.TS0_Q1_2013_Reports.xlsx
City of Yakima
Bonded Debt Schedule - by Project Group
Quarter Ending March 31, 2013
Final Amount Current Redeemed
Date Issued Payment Description Note Issued Balance Due This Quarter
General Obligation Bonds
$31,780,528
$20,603,268
$101,614
Certificate of Participation - State of Washington
9/7/2004
11/1/2019
PFD Convention Center II
Refunded 1996 issue
4,175,000
2,500,000
0
5/8/2007
5/1/2026
PFD Convention Center III
Partial refunding of 2002 issue
4,910,000
4,855,000
0
8/28/2009
12/1/2018
PFD Capitol Theatre
Tax exempt portion
2,055,000
1,325,000
0
8/28/2009
12/1/2024
PFD Capitol Theatre
Build America Bonds (Taxable)
1,755,000
1,755,000
0
8/28/2009
12/1/2032
PFD Capitol Theatre
Build America Bonds (Taxable)
3,225,000
3,225,000
0
6/17/2003
12/1/2023
Sundome Expansion
Deferred Interest - Maturity $2.5M
1,430,528
943,268
101,614
6/17/2003
12/1/2013
Law and Justice Center
Refunded 1994 issue
4,155,000
500,000
0
9/7/2004
12/1/2014
Fire Station
2,300,000
560,000
0
8/28/2008
12/1/2021
Fire Apparatus
Ladder Truck
760,000
555,000
0
5/8/2007
5/1/2022
Fire Station
Remodel Facility
815,000
600,000
0
8/28/2008
12/1/2019
Infrastructure Projects
Ped crossing, street, infrastructure
2,190,000
1,455,000
0
5/8/2007
5/1/2022
Downtown Futures
Renovate downtown improvements
1,490,000
1,090,000
0
5/8/2007
5/1/2017
River Road
River Road improvements
1,765,000
980,000
0
12/1/2005
12/1/2015
Parks and Recreation
Parks improvements
755,000
260,000
0
Subtotal General Obligation Bonds
$31,780,528
$20,603,268
$101,614
Certificate of Participation - State of Washington
6/1/2011 12/1/2020 Fire Apparatus
Two trucks purchased $576,847
$472,526
$0
3/19/2013 7/1/2023 Fire Apparatus
One truck $310,414
$310,414
$0
Revenue Bonds
12/2/2003 11/1/2014 Wastewater
$7,390,000
$1,060,000
$0
5/31/2012 11/1/2023 Wastewater
Refunded 2003 $10,155,000 issue 9,400,000
9,355,000
0
6/5/2008 11/1/2027 Wastewater
5,440,000
4,555,000
0
6/5/2008 11/1/2018 Water Refunded 1998 issue 1,883,951 1,210,000 0
9/4/2004 9/1/1934 Irrigation 5,215,000 4,345,000 0
Subtotal Revenue Bonds $29,328,951 $20,525,000 $0
Grand Total $61,419,893 $41,438,682 $101,614
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City of Yakima
Interfund Borrowings and Investments
Quarter Ending March 31, 2013
Original Beginning Ending
Description Balance Balance Issued Retired Balance Investment Held by:
Local Improvement District Bonds /Notes
$ 1,432,509 $
572,000
$ - $ 572,000
Equipment Rental
Irrigation Capital Fund
1,432,509
436,000
30,000 406,000
Equipment Rental
REET 1 - Upper Kiwanis Park
600,000
600,000
25,080 574,920
Equipment Rental
Ending Cash
Funds in Negative Cash Position at Quarter End Balance Cash Loaned by:
Fund 150 - Emergency Services
Fund 471 - Refuse
(100,214) General Fund
(88,634) General Fund
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