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Home My WebLink About07/18/2023 06.B. 2023 2nd Quarter Treasury ReportI BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.13. For Meeting of: July 18, 2023 ITEM TITLE: 2023 2nd Quarter Treasury Report SUBMITTED BY: Jennifer Ferrer -Santa Ines, Director of Finance and Budget *Kimberly Domine, Financial Services Manager SUMMARY EXPLANATION: The Treasury Report for the second quarter of 2023 is attached and consists of the following: • 2nd Quarter Treasurer's Report • Cash and Investments • Long Term Debt • I nterfund Borrowings M Public Trust and Accountability F-11:21:21 :191TA 4 11&1 Z4411 4 J, I k A r-1111111 --Y& 9: 14161111 Iva J, Y-11 Z F-ITC1 4 V Review only. Submitted for routine transparency and accountability purposes. ATTACHMENTS: Description Upload Date Type D Memo 7/10/2023 Cover Memo 2 Fµwu FINANCE Date: July 7, 2023 To: Mayor and City Council Bob Harrison, City Manager From: Jennifer Ferrer -Santa Ines, Director of Finance and Budget Kimberly Domine, Financial Services Manager Re: 2023 — 2"d Quarter Treasury Report This report is to transparently report 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. Total Cash and Investments at Quarter -end total $149.6 million: $20.6 million in depository banks, $65.0 million in the State Pool, and $64.0 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). .S0FOOMOO O0F000F000 .40 F 0001 000 .20FOOOF000 .001001000 $80,0t)0,000 $60,000,000 $40POOOPOOO $20,000,000 0 City of Yakima Liquid Cash and Investments History say, ., 5 * ", 0 C:,> t�... C"z a 'A ..i r 4 �Ih c1i ev 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: • 1570 $1,000,000 FFCB matured 04/13/2023 • 1516 $1,000,000 APPLE matured 05/03/2023 • 1513 $1,000,000 WALMART matured 06/26/2023 Purchases: During the last quarter, the following were purchased: • 1588 $2,000,000 US Treasury to mature 05/31/2026 • 1589 $2,000,000 FHLB to mature 06/12/2026 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: 3.45% LGIP State Pool 30-day yield: 5.18% Weighted average maturity of City investments, excluding LGIP: 284 days Weighted average maturity of LGIP State Pool 30-day yield: 33 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 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 consist 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 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. K FINANCE Current Rates. As of June 30, 2023, the fixed income market does not show future confidence with the1-year Treasury currently at 127 basis points higher than the 5-year Treasury, yielding 5.40% and 4.13% respectively. The 30-day yield of the State Pool Jumped from 4.74% to 5.18%, with a 33-day avg. maturity over last quarter. Economic Outlook. A solid employment report with stronger -than -expected wage growth for June keeps the Federal Reserve on track to raise interest rates this month and mull another hike as soon as September. 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 % LGIP 65,017,51 Treasuries 7g000F000 Agencies 27,000,000 50 2 % 21 % 129,017,51 100% Debt Activit All debt payments were paid out as scheduled. A comprehensive city-wide debt report is attached with current balances. Interfund Borrowinas and Investments Borrowing between funds is temporary in nature, reviewed periodically by staff and Council, amended as circumstances change. Currently there are two Interfund Loans. The first loan is to help cash flow the Mill Site Project that is waiting for the receipt of grant reimbursements. It was determined that the Mill Site needed more than the original amount loaned so an increase was given with the payment schedule extended out to three years and aligned with the LIFT revenues that are received annually. The second loan is to help cash flow the Nelson Dam Project. This interfund loan is for three years with monthly payments starting January 2023. 3 Description Cash Balances on Hand in Banks Local Government Investment Pool (LGIP) Investment Portfolio Total Investments Total Cash and Investments City of Yakima Cash and Investment Summary June 30, 2023 Current Prior Quarter Prior Year 6/30/2023 3/31 /2023 6/30/2022 20,577,895.89 $ 19,401,453 $ 18,573,295 65,017,513 57,714,422 76,874,505 64,000,000 63,000,000 56,000,000 129,017,513 120,714,422 132,874,505 $ 149,595,409 $ 140,115,875 $ 151,447,800 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 3/31/2023 & Deposits Reinvested & Withdrawals 6/30/2023 Local Government Investment Pool (LGIP) $ 57,714,422 $ 16,500,000 $ 803,092 $ (10,000,000) $ 65,017,513 Investment Portfolio 63,000,000 4,000,000 - (3,000,000) 64,000,000 Total Investments $ 120,714,422 $ 20,500,000 $ 803,092 $ (13,000,000) $ 129,017,513 Page 1 of 8 2023 Q2 TSO spreadsheet City of Yakima Distribution Investments s of 06/30/2023 �z�iia- IM Portfolio, 64,000,000, %% Depository Banks, M. Page 2 of 8 City of Yakima Investment Portfolio - Inventory by Agency June 30, 2023 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' FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 1,078 1,944,568 NC Aaa AA+ NA NC 6/26/23 FFCB 1561 3133EMWL2 2,000,000 2,000,314 0.200 0.193 4/19/21 7/19/23 19 1,994,760 NC Aaa AA+ AAA NC 7/19/23 UST 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 62 995,704 NC Aaa AA+ AAA NC 8/31/23 FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 81 994,817 NC Aaa AA+ AAA NC 9/19/23 FHLB 1558 313375ZL4 2,000,000 2,143,690 2.795 0.200 1/7/21 10/17/23 109 1,984,340 NC Aaa AA+ AAA NC 10/17/23 FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 124 986,879 NC Aaa AA+ AAA NC 11/1/23 FFCB 1560 3133EJ2134 2,000,000 2,147,340 3.000 0.260 3/24/21 12/6/23 159 1,978,132 NC Aaa AA+ AAA NC 12/6/23 FAMCA 1552 31422BSD3 1,000,000 1,004,430 1.590 1.470 2/14/20 1/10/24 194 979,384 NC NA NA NA NC 1/10/24 FHLB 1585 3130AUQC1 1,000,000 1,000,904 4.875 4.780 2/3/23 1/30/24 214 996,227 NC NA NA NA NC 1/30/24 FNMA 1540 3135GOV34 1,000,000 1,032,055 2.500 1.710 11/14/19 2/5/24 220 982,445 NC Aaa AA+ AAA NC 2/5/24 FNMA 1573 3135GOV34 1,000,000 1,035,991 2.500 0.771 12/28/21 2/5/24 220 982,445 NC Aaa AA+ AAA NC 2/5/24 UST 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 275 1,951,563 NC Aaa AA+ AAA NC 3/31/24 UST 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 289 960,781 NC Aaa NA AAA NC 4/14/24 UST 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 305 973,828 NC Aaa NA AAA NC 4/30/24 UST 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 336 1,937,891 NC Aaa NA AAA NC 5/31/24 FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 341 969,299 NC NA NA NA NC 6/5/24 FFCB 1585 3133ENG20 1,000,000 985,011 3.300 4.320 2/3/23 8/15/24 412 977,199 NC Aaa AA+ AAA NC 8/15/24 UST 1566 91282CCG4 1,000,000 994,102 0.250 0.451 6/30/21 6/15/24 351 951,680 NC Aaa NA AAA NC 6/15/24 UST 1563 9128282N9 2,000,000 2,112,813 2.125 0.352 5/16/21 7/31/24 397 1,930,313 NC Aaa NA AAA NC 7/31/24 UST 1546 91282821,13 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 428 960,117 NC Aaa NA AAA NC 8/31/24 UST 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 458 1,906,875 NC Aaa NA AAA NC 9/30/24 UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 489 1,901,953 NC Aaa NA AAA NC 10/31/24 FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 497 950,811 NC Aaa AA+ AAA NC 11/8/24 FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 532 964,065 NC Aaa AA+ NA NC 12/13/24 FAMCA 1555 31422BRT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 553 950,520 NC NA NA NA NC 1/3/25 UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 609 1,873,750 NC Aaa NA AAA NC 2/28/25 UST 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 640 1,848,906 NC Aaa NA AAA NC 3/31/25 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 670 919,531 NC NA NA NA NC 4/30/25 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 670 919,531 NC NA NA NA NC 4/30/25 UST 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 701 1,829,219 NC Aaa NA AAA NC 5/31/25 UST 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 731 912,773 NC Aaa AA+ AAA NC 6/30/25 UST 1576 91282CAB7 2,000,000 1,843,472 0.250 2.780 4/29/22 7/31/25 762 1,818,984 NC Aaa NA AAA NC 7/31/25 UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 823 905,352 NC NA NA NA NC 9/30/25 UST 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 854 1,804,297 NC Aaa NA AAA NC 10/31/25 UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 915 1,802,109 NC Aaa NA AAA NC 12/31/25 UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 946 1,902,891 NC Aaa NA AAA NC 1/31/26 UST 1584 9128281P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 961 1,852,656 NC Aaa NA AAA NC 2/15/26 UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 1,066 1,795,313 NC Aaa NA AAA NC 5/31/26 FNMA 1578 3135G05X7 2,000,000 1,844,334 0.375 2.870 5/12/22 8/25/25 787 1,819,023 NC Aaa AA+ AAA NC 8/25/25 FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 879 1,907,308 NC Aaa AA+ NA NC 11/25/25 FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 987 1,964,612 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 1,029 1,872,007 NC Aaa AA+ AAA NC 4/24/26 Subtotal 42 64,000,000 63,615,512 Avg. 60,854,860 LGIP LGIP NA 65,017,513 65,017,513 5.180 5.180 NA NA 1 65,017,513 NC NA NA Grand Totals $ 129,017,513 $ 128,633,025 3.45% 284 $ 125,872,373 Page 3 of 8 2023 Q2 TSO spreadsheet �Mll Diversifying by issuer reduc the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations which can vary by issuer. City of Yakima Investment Portfolio by Issuer at 06/30/2023 I LIP, 65,017,513, 50% Page 4 of 8 2023 Q2 TSO spreadsheet Page 5 of 8 $5,000,000 E City of Yakima Investment Portfolio Maturity Distribution at 06/30/2023 Diversifying by maturity reduces the re -investment risk the city is subject to in any given month when an investment matures and the principal is reinvested at rates available at that moment. ro rn M M M rn It 'r 'T 7T N IT M Ln Ln M M U) Ln Ln LO Ln Ln Ln �O Q0 Q0 N k10 <V)OZO LL 2 <AOZO U- 2 <V)OZO L� 2 Page 5 of 8 2023 Q2 TSO spreadsheet City of Yakima 10 Investment Portfolio - Detail of Activity June 30, 2023 Beginning Additions and Calls and Ending Agency Inv# Face Value Purchases Maturities Face Value Farmer Mac FAMCA 1508 1,000,000 1,000,000 FAMCA 1533 1,000,000 1,000,000 FAMCA 1552 1,000,000 1,000,000 FAMCA 1555 1,000,000 1,000,000 FAMCA Total 4,000,000 4,000,000 Federal Farm Credit Bureau FFCB 1537 1,000,000 - 1,000,000 FFCB 1538 1,000,000 - 1,000,000 FFCB 1557 - - FFCB 1560 2,000,000 2,000,000 FFCB 1561 2,000,000 2,000,000 FFCB 1570 1,000,000 (1,000,000) - FFCB 1579 2,000,000 2,000,000 FFCB 1586 1,000,000 1,000,000 FFCB Total 10,000,000 (1,000,000) 9,000,000 Federal Home Loan Bank FHLB 1554 1,000,000 1,000,000 FHLB 1558 2,000,000 2,000,000 FHLB 1585 1,000,000 1,000,000 FHLB 1587 2,000,000 2,000,000 FHLB 1589 - 2,000,000 2,000,000 FHLB Total 6,000,000 2,000,000 - 8,000,000 Federal National Management Association FNMA 1540 1,000,000 1,000,000 FNMA 1541 - FNMA 1573 1,000,000 1,000,000 FNMA 1578 2,000,000 2,000,000 FNMA 1583 2,000,000 2,000,000 FNMA Total 6,000,000 6,000,000 US Treasury 1545 1,000,000 1,000,000 US Treasury 1546 1,000,000 1,000,000 US Treasury 1553 1,000,000 1,000,000 US Treasury 1559 2,000,000 2,000,000 US Treasury 1562 2,000,000 2,000,000 US Treasury 1563 2,000,000 2,000,000 US Treasury 1564 2,000,000 2,000,000 US Treasury 1565 1,000,000 1,000,000 US Treasury 1566 1,000,000 1,000,000 US Treasury 1567 2,000,000 2,000,000 US Treasury 1568 2,000,000 2,000,000 US Treasury 1569 1,000,000 1,000,000 US Treasury 1571 1,000,000 1,000,000 US Treasury 1572 2,000,000 2,000,000 US Treasury 1574 2,000,000 2,000,000 US Treasury 1575 2,000,000 2,000,000 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 35,000,000 2,000,000 37,000,000 Corporate Notes AAPL 1516 1,000,000 - (1,000,000) - W MT 1513 1,000,000 (1,000,000) Corporate Total 2,000,000 (2,000,000) - Subtotal 63,000,000 4,000,000 (3,000,000) 64,000,000 Other Investments - - - LGIP (State Pool) LGIP 57,714,422 17,303,092 (10,000,000) 65,017,513 Other Investment Totals 57,714,422 17,303,092 (10,000,000) 65,017,513 Grand Totals $ 120,714,422 $ 21,303,092 $ (13,000,000) $ 129,017,513 Page 6 of 8 2023 Q2 TSO spreadsheet City of Yakima Long Term Debt Schedule - by Project Group June 30, 2023 Date Issued Maturity Description Note Amount of Issue Current Balance General Obligation Bonds 6/17/2003 12/1/2023 Sundome Expansion Deferred Interest -Maturity $2.5M 1,430,528 57,762.00 6/20/2013 12/1/2028 Street Project Demonstration (Refunded) Various City street improvements 3,500,000 1,969,597.95 6/9/2014 6/l/2024 Street Resurfacing Project Streets improvements 13,140,000 1,610,000.00 9/24/2018 6/l/2035 Soccer Complex (Refunded) City portion of SOZO Sports Complex 4,440,127 3,588,182.66 9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,830,147.96 4/21/2020 12/1/2032 2020B Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 3,890,000.00 4/21/2020 12/l/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 11,685,000.00 4/21/2020 12/l/2044 2020B Convention Center Addition III Refu: 2020B Convention Center Addition III Refunded 2,495,000 2,310,000.00 Subtotal General Obligation Bonds 50,545,528 32,940,690.57 Certificate of Participation - State of Washington 3/19/2013 6/1/2023 Fire Apparatus One truck 310,414 - 9/28/2017 6/1/2027 Energy Project 2017 Energy Project (lighting) 921,863 427,18285 7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project (lighting) 1,415,000 1,210,000.00 9/28/2017 6/1/2027 Fire Aerial & Pump App Fire Aerial 1,268,053 587,718.53 Subtotal Certificates of Participation 3,915,330 2,224,901.38 Revenue Bonds 43942 12/1/2034 2020 Ref 04 Irrigation 2020 Ref 04 Irrigation 3,260,000 2,720,000.00 43942 12/l/2027 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 1,760,000.00 5/31/2012 11/l/2023 Wastewater Refunded 2003 $10,155,000 issue 9,400,000 1,120,000.00 Subtotal Revenue Bonds 15,250,000 5,600,000.00 Intergovernmental Loans 8/14/2009 7/1/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 825,501.26 5/6/2010 6/l/2034 L1000030-0 2010 Railroad Grade Separation 1,149,841 789,735.37 6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,090,000.00 9/30/2015 6/1/2023 '15 Yak Co SIED - 21st Ave/Airport 2015 Yakima Co SIED Loan - 21st Ave/Airport 307,000 - 6/1/2016 6/1/2027 '16 Yak Co SIED - SOZO 2016 Yakima Co SIED Loan - SOZO 900,000 398,310.45 11/21/2017 6/1/2024 '17 Yak Co SIED - YV Brewing Project 2017 Yakima Co SIED Loan - YV Brewing Project 61,580 13,720.49 7/17/2018 6/1/2029 '18 Yak Co SIED - River Rd. 2018 Yakima Co SIED - River Rd Improvements/Aquatics Center 500,000 331,90257 3/2/2021 6/l/1932 21 Yak Co Seid - SOZO 2021 Yakima Co SLID Loan SOZO 1,000,000 937,543.61 9/l/2003 6/1/2023 PW-03-691-027 2003 Naches WTP Improvements 2,694,500 - 6/27/2005 10/1/2025 SRF-04-65104-037 2005 Naches River WTP Filter Rehab 966,772 141,217.94 12/30/2005 6/1/2025 PW-05-691-064 2005 River Road Sewer 2,307,000 248,491.55 4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 485,555.54 4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 605,744.13 10/10/2011 3/31/2033 L1100008 2011 Energy Efficiency 503,558 301,678.47 8/l/2011 7/l/2034 L1200019 2012Industrial Waste Anaerobic 590,350 389,245.51 6/1/2012 6/l/2031 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,152,633.12 10/11/2012 6/l/2037 PC-13-961-059 2012Industrial Sewer Extensions 2,000,000 1,138,756.01 8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 2,368,421.05 12/31/2021 6/1/2039 PC20-96103-044 2020 Waterline Improvements 1,737,906 1,544,805.64 12/12/2013 10/l/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,108,880.02 Subtotal Intergovernmental Loans 37,507,007 15,872,142.73 Grand Total 107,217,865 56,637,734.68 Page 7 of 8 2023 Q2 TSO spreadsheet City of Yakima Interfund Borrowing June 30, 2023 Description Original Balance Beginning Balance Issued Ending Retired Balance Millsite 1,800,000 1,317,796.16 1,317,796.16 Nelson Dam 3,299,691 2,999,719.08 299,971.92 2,699,747.16 Total across all funds 5,099,691 4,317,515.24 - 299,971.92 4,017,543.32 Per Ordinance #2013-011 Tempory Interfund Loans to help with cash flow. Page 8 of 8 2023 Q2 TSO spreadsheet