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Home My WebLink About10/17/2023 07.B. 2023 3rd Quarter Treasury Report 1 s !1 a, _____) BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 7.B. For Meeting of: October 17, 2023 ITEM TITLE: 2023 3rd Quarter Treasury Report SUBMITTED BY: Rosylen Oglesby,Assistant City Manager/Interim Director of Finance & Budget Kimberly Domine, Financial Services Manager SUMMARY EXPLANATION: The Treasury Report for the third quarter of 2023 is attached and consists of the following: • 3rd Quarter Treasurer's Report • Cash and Investments • Long Term Debt • I nterfund Borrowings ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review only. Submitted for routine transparency and accountability purposes. ATTACHMENTS: Description Upload Date Type ❑ Backup Material 2 5471-3;\ FINANCE Date: October 2, 2023 _ WPTA To: Mayor and City Council CERTIFICATE xC�NCE Bob Harrison, City Manager 'n`�` PnI v CITY OF YAKIMA + Femem 2019 From: Kimberly Domino, Financial Services Manager ;tA..1,;,;;me.,Fen;p;;' Re: 2023 — 3rd Quarter Treasury Report k 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 $148.1 million: $21.2 million in depository banks, $62.9 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). City of Yakima Liquid Cash and Investments History $180,000,000 _ $160,000,000 $140,000,000 - $120,000,000 - F�.■� 1 $100,000,000 -- $80,000,000 I I 1 $60,000,000 1 $40,000,000 $20,000,000 1 $0 _LA I ' CC 14 71 .01—i or al N O 0 O N N N N IV N N r1 A N N 3 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: • 1561 $2,000,000 FFCB matured 07/19/2023 • 1545 $1,000,000 US Treasury matured 08/31/2023 • 1508 $1,000,000 FAMCA matured 09/19/2023 Purchases: During the last quarter, the following were purchased: • 1590 $2,000,000 FFCB to mature 07/06/2026 • 1591 $2,000,000 FAMCA to mature 09/08/2026 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: 3.62% LGIP State Pool 30-day yield: 5.39% Weighted average maturity of City investments, excluding LGIP: 277 days Weighted average maturity of LGIP State Pool 30-day yield: 12 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. 2 4 FINANCE Current Rates. As of September 30, 2023, the fixed income market does not show future confidence with the1-year Treasury currently at 86 basis points higher than the 5-year Treasury, yielding 5.46% and 4.60% respectively. The 30-day yield of the State Pool Jumped from 5.18% to 5.39%, with a 12-day avg. maturity over last quarter. Economic Outlook. The Current Federal Open Market Committee projections see the federal funds rate at a range of 5.50-5.75% by the end of 2023, implying one more .25% rate hike in either November or 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 % LG I P 62.890.167 50% Treasuries 36.000.000 28v,% Agencies 28.000.000 22% 126.890.167 100% 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 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 that started January 2023. 3 City of Yakima Cash and Investment Summary September 30, 2023 Current Prior Quarter Prior Year Description 9/30/2023 6/31/2023 9/30/2022 Cash Balances on Hand in Banks 21,250,972.79 $ 20,577,896 $ 18,389,364 Local Government Investment Pool (LGIP) 62,890,167 65,017,513 76,874,505 Investment Portfolio 64,000,000 64,000,000 56,000,000 Total Investments 126,890,167 129,017,513 132,874,505 Total Cash and Investments $ 148,141,140 $ 149,595,409 $ 151,263,869 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 6/31/2023 & Deposits Reinvested & Withdrawals 9/30/2023 Local Government Investment Pool (LGIP) $ 65,017,513 $ 3,000,000 $ 872,654 $ (6,000,000) $ 62,890,167 Investment Portfolio 64,000,000 4,000,000 - (4,000,000) 64,000,000 Total Investments $ 129,017,513 $ 7,000,000 $ 872,654 $ (10,000,000) $ 126,890,167 Page 1 of 8 2023 Q3 TSO spreadsheet City of Yakima Distribution of Cash and Investments as of 09/30/2023 Depository Banks, $21,250,973 , 14% Investment Portfolio, 64,000,000 , 43% Local Government Investment Pool, $62,890,167 , 43% Page 2 of 8 City of Yakima Investment Portfolio-Inventory by Agency September 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 1558 313375ZL4 2,000,000 2,143,690 2.795 0.200 1/7/21 10/17/23 17 1,997,090 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 32 996,382 NC Aaa AA+ AAA NC 11/1/23 FFCB 1560 3133EJ2B4 2,000,000 2,147,340 3.000 0.260 3/24/21 12/6/23 67 1,990,360 NC Aaa AA+ AAA NC 12/6/23 FAMCA 1552 31422BSD3 1,000,000 1,004,430 1.590 1.470 2/14/20 1/10/24 102 988,445 NC NA NA NA NC 1/10/24 FHLB 1585 3130AUQC1 1,000,000 1,000,904 4.875 4.780 2/3/23 1/30/24 122 997,550 NC NA NA NA NC 1/30/24 FNMA 1540 3135G0V34 1,000,000 1,032,055 2.500 1.710 11/14/19 2/5/24 128 989,378 NC Aaa AA+ AAA NC 2/5/24 FNMA 1573 3135G0V34 1,000,000 1,035,991 2.500 0.771 12/28/21 2/5/24 128 989,378 NC Aaa AA+ AAA NC 2/5/24 US T 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 183 1,967,188 NC Aaa AA+ AAA NC 3/31/24 US T 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 197 972,930 NC Aaa NA AAA NC 4/14/24 US T 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 213 981,367 NC Aaa NA AAA NC 4/30/24 UST 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 244 1,954,219 NC Aaa NA AAA NC 5/31/24 FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 249 976,487 NC NA NA NA NC 6/5/24 UST 1566 91282CCG4 1,000,000 994,102 0.250 0.451 6/30/21 6/15/24 259 963,711 NC Aaa NA AAA NC 6/15/24 UST 1563 9128282N9 2,000,000 2,112,813 2.125 0.352 5/16/21 7/31/24 305 1,945,000 NC Aaa NA AAA NC 7/31/24 FFCB 1585 3133ENG20 1,000,000 985,011 3.300 4.320 2/3/23 8/15/24 320 981,535 NC Aaa AA+ AAA NC 8/15/24 UST 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 336 967,578 NC Aaa NA AAA NC 8/31/24 UST 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 366 1,923,203 NC Aaa NA AAA NC 9/30/24 UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 397 1,917,109 NC Aaa NA AAA NC 10/31/24 FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 405 957,087 NC Aaa AA+ AAA NC 11/8/24 FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 440 968,174 NC Aaa AA+ NA NC 12/13/24 FAMCA 1555 31422BRT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 461 955,018 NC NA NA NA NC 1/3/25 UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 517 1,886,328 NC Aaa NA AAA NC 2/28/25 UST 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 548 1,862,734 NC Aaa NA AAA NC 3/31/25 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 578 926,406 NC NA NA NA NC 4/30/25 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 578 926,406 NC NA NA NA NC 4/30/25 UST 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 609 1,842,578 NC Aaa NA AAA NC 5/31/25 UST 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 639 918,320 NC Aaa AA+ AAA NC 6/30/25 UST 1576 91282CAB7 2,000,000 1,843,472 0.250 2.780 4/29/22 7/31/25 670 1,829,766 NC Aaa NA AAA NC 7/31/25 FNMA 1578 3135G05X7 2,000,000 1,844,334 0.375 2.870 5/12/22 8/25/25 695 1,827,952 NC Aaa AA+ AAA NC 8/25/25 UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 731 909,141 NC NA NA NA NC 9/30/25 UST 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 762 1,811,484 NC Aaa NA AAA NC 10/31/25 FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 787 1,904,303 NC Aaa AA+ NA NC 11/25/25 UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 823 1,805,938 NC Aaa NA AAA NC 12/31/25 UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 854 1,896,328 NC Aaa NA AAA NC 1/31/26 UST 1584 912828P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 869 1,851,094 NC Aaa NA AAA NC 2/15/26 FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 895 1,960,751 NC Aaa AA+ NA NC 3/13/26 FNMA 1583 3135G0K36 2,000,000 1,880,612 2.125 4.040 12/13/22 4/24/26 937 1,863,052 NC Aaa AA+ AAA NC 4/24/26 UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 974 1,794,063 NC Aaa NA AAA NC 5/31/26 FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 986 1,938,804 NC Aaa AA+ NA NC 6/26/23 FFCB 1590 3133EPPE9 2,000,000 1,975,386 4.375 4.840 8/29/23 7/6/26 1,010 1,967,051 NC Aaa AA+ NC NC 7/6/26 FAMCA 1591 31422X6U1 2,000,000 1,987,142 4.625 4.860 9/22/23 9/8/26 1,074 1,978,983 NC NC NC NC NC 9/8/26 Subtotal 41 64,000,000 63,527,691 Avg. 61,080,670 LGIP LGIP NA 62,890,167 62,890,167 5.390 5.390 NA NA 1 62,890,167 NC NA NA Grand Totals $126,890,167 $ 126,417,858 3.62% 277 $ 123,970,838 Page 3 of 8 2023 Q3 TSO spreadsheet City of Yakima Investment Portfolio by Issuer at 09/30/2023 FAMCA, 5,000,000, 4% US T, 36,000,000, 28% FHLB, 8,000,000, 6% FNMA, 6,000,000, 5% 911 • • FFCB, 9,000,000, 7% Diversifying by issuer reduces the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations LGIP, 62,890,167, 50% which can vary by issuer. Page 4 of 8 2023 Q3 TSO spreadsheet Page 5 of 8 City of Yakima Investment Portfolio Maturity Distribution at 09/30/2023 $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 $1,500,000 $1,000,000 $500,000 $0 m m m in in in in in n n n n n n n VD VD VD VD VD VD VD VD (o N N N N N N N N N N N N N N N N N N N N (-4 N N N N N N N N N N N N N N N • > C) C C h0 Q a"' > C) C ? C - GO Q a"' > C) C ? C - GO O N f0 U/ O- 0 7 U) U O N f0 U/ - f0 7 - N U O N f0 U) f0 o z o � g a a � o z o � g a g a � o z o � g Page 5 of 8 2023 Q3 TSO spreadsheet City of Yakima 10 Investment Portfolio-Detail of Activity September 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 1591 - 2,000,000 2,000,000 FAMCA Total 4,000,000 2,000,000 (1,000,000) 5,000,000 Federal Farm Credit Bureau FFCB 1537 1,000,000 - - 1,000,000 FFCB 1538 1,000,000 - - 1,000,000 FFCB 1560 2,000,000 2,000,000 FFCB 1561 2,000,000 (2,000,000) - FFCB 1579 2,000,000 2,000,000 FFCB 1586 1,000,000 1,000,000 FFCB 1590 - 2,000,000 2,000,000 FFCB Total 9,000,000 2,000,000 (2,000,000) 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 8,000,000 - - 8,000,000 Federal National Management Association FNMA 1540 1,000,000 - 1,000,000 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 37,000,000 - (1,000,000) 36,000,000 Subtotal 64,000,000 4,000,000 (4,000,000) 64,000,000 Other Investments - - - - LGIP(State Pool) LGIP 65,017,513 3,872,654 (6,000,000) 62,890,167 Other Investment Totals 65,017,513 3,872,654 (6,000,000) 62,890,167 'Grand Totals $ 129,017,513 $ 7,872,654 $ (10,000,000) $ 126,890,167 Page 6 of 8 2023 Q3 TSO spreadsheet City of Yakima Long Term Debt Schedule-by Project Group September 30,2023 IDate Issued Maturity Description Note Amount of Issue Current Balance I 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 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 1,610,000.00 9/24/2018 6/1/2035 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 12/1/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 11,685,000.00 4/21/2020 12/1/2044 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) 921,863 427,182.85 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 12/1/2027 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 1,760,000.00 5/31/2012 11/1/2023 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 6/1/2034 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 500,000 331,902.57 3/2/2021 6/1/1932 21 Yak Co Seid-SOZO 2021 Yakima Co SEID Loan SOZO 1,000,000 937,543.61 9/1/2003 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 503,558 288,513.81 8/1/2011 7/1/2034 L1200019 2012 Industrial Waste Anaerobic 590,350 374,628.83 6/1/2012 6/1/2031 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,152,633.12 10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial 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 10/1/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,108,880.02 Subtotal Intergovernmental Loans 37,507,007 15,844,361.39 (Grand Total 107,217,865 56,609,953.34 Page 7 of 8 2023 Q3 TSO spreadsheet City of Yakima Interfund Borrowing September 30,2023 Original Beginning Ending Description Balance Balance Issued Retired Balance Millsite 1,800,000 1,317,796.16 281,777.31 1,036,018.85 Nelson Dam 3,299,691 2,699,747.16 299,971.92 2,399,775.24 Total across all funds 5,099,691 4,017,543.32 - 581,749.23 3,435,794.09 Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow. Page 8 of 8 2023 Q3 TSO spreadsheet 13 FINANCE Committee Review of Investment Rationale Date: August 28, 2023 Investment # 2023-1590 is a 3-year Federal Farm Credit Bank (FFCB), face value $2,000,000, maturing July 06, 2026, 4.375% coupon purchased at 98.769300 to yield 4.84%. This trade settles August 29, 2023 with Wedbush Securities Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2023. Liquidity: At July 31st , month-end, Key Bank checking account balance was $10.7 million (target minimum is $3 Million), US Bank checking balance was $8.6 million and an investment portfolio was $62.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $65.3 million (target minimum is $5 million). Safety: This purchase is a debt issue of a government-sponsored enterprise (GSE), that carries an explicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 4.84%. This investment is 49 basis points under LGIP and 12 basis points over a 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield 5.3342% www.secureaccess.wa.gov 5year Treasury 4.4400% Treasury.gov 3-year Treasury 4.7200% Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 7% of total portfolio. This investment adds a maturity date not previously covered in the City's laddered portfolio. Outlook. The yield curve continues to remain high; the 1-year Treasury at 5.44%, the 2- year at 5.03% the 3-year at 4.72%, and the 5-year at 4.44%. We are also seeing an inverted yield curve, meaning that the rate goes lower the longer the term. Investment Committee review: Finance Directo Date Pill 13 City Manager: Date g jag1 14 Ij FINANCE Committee Review of Investment Rationale Date: September 21, 2023 Investment # 2023-1590 is a 3-year Farmer Mac (FAMCA), face value $2,000,000, maturing September 8, 2026, 4.62% coupon purchased at 99.357100 to yield 4.86%. This trade settles September 22, 2023 with Time Value Investments, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2023. Liquidity: At August 31st, month-end, Key Bank checking account balance was $9.7 million (target minimum is $3 Million), US Bank checking balance was $10.0 million and an investment portfolio was $63.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $62.6 million (target minimum is $5 million). Safety: This purchase is a debt issue of a government-sponsored enterprise (GSE), that carries an explicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 4.8600%. This investment is 51 basis points under LGIP and 34 basis points over a 3-year treasury, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield _ 5.3733% www.secureaccess.wa. ov 5year Treasury 4.5200% _ Treasury.gov 3-year Treasury 4.8200% , Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 3.9% of total portfolio. This investment adds a maturity date not previously covered in the City's laddered portfolio. Outlook. The yield curve is currently still high and still moving in an upward trend; the 1- year Treasury at 5.47%, the 2-year at 5.12%, the 3-year at 4.82%, and the 5-year at 4.52%. We are also seeing an inverted yield curve, meaning that the rate goes lower the longer the term. Investment Committee review: Finance Director: Date c //269- City Manager: Date g/Qa)-xD3