HomeMy WebLinkAbout04/16/2024 07.B. 2024 1st Quarter Treasury Report 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.B.
For Meeting of:April 16, 2024
ITEM TITLE: 2024 1st Quarter Treasury Report
SUBMITTED BY: Rosylen Oglesby, Director of Finance and Budget
Kimberly Domine, Financial Services Manager
SUMMARY EXPLANATION:
The Treasury Report for the first quarter of 2024 is attached and consists of the following:
• 1st 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
D Treasury Report Backup Material
2
;4471-3,\
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FINANCE
Date: April 2, 2024
_ WPTA
To: Mayor and City Council CERTIFICATE EXCELLENCE
Dave Zabell, Interim City Manager
CITY OF YAKIMA
r F.omzols
From: Kimberly Domino, Financial Services Manager ; ,- ;p,•^'-.•°�°
Re: 2024 — 1st 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 $145.2 million: $20.6 million in depository
banks, $58.6 million in the State Pool, and $66.0 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
$140,000,000 r soli-�
$120,000,000 ] J�i� 51 J—�
$100 000 000 — ^A
$80,000,000 _ _
$60,000,000
$40,000,000 1Mau
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so III
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•Portfolio(par) D Primary Acct •Key Checking ❑USB Checking
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.
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FINANCE
Calls or Maturities. During last quarter, the following matured or were called at full value:
• 1552 $1,000,000 FAMCA matured 01/10/2024
• 1585 $1,000,000 FHLB matured 01/30/2024
• 1540 $1,000,000 FNMA matured 02/05/2024
• 1573 $1,000,000 FNMA matured 02/5/2024
• 1559 $2,000,000 US Treasury matured 03/31/2024
Purchases: During the last quarter, the following were purchased:
• 1596 $2,000,000 FFCB to mature 01/19/2027
• 1597 $2,000,000 FFCB to mature 02/12/2027
• 1598 $2,000,000 FFCB to mature 03/15/2027
Portfolio and Benchmark Yield and Maturity:
Avg. weighted yield of City investments, excluding LGIP: 3.70%
LGIP State Pool 30-day yield: 5.43%
Weighted average maturity of City investments, excluding LGIP: 299 days
Weighted average maturity of LGIP State Pool 30-day yield: 23 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.
Current Rates. As of March 31, 2024, the fixed income market still shows an inverted market
with thel-year Treasury currently at 82 basis points higher than the 5-year Treasury, yielding
5.03% and 4.21% respectively. The 30-day yield of the State Pool moved ever so slightly lower
from 5.44% to 5.43%, with a 23-day avg. maturity over last quarter.
2
4
FINANCE
Economic Outlook. Jerome H. Powell, the chair of the Federal Reserve, said on Friday, March
29th that resilient economic growth is giving the central bank the flexibility to be patient before
cutting interest rates. Fed officials raised interest rates sharply from early 2022 to mid-2023, and
they have left them at about 5.3 percent since last July.
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 58.606;106 47%
Treasuries 36;000,000 29%
Agencies 30;000,000 24%
124,606,106 1 OO o
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 and is due to be paid in full September 2025.
3
City of Yakima
Cash and Investment Summary
March 31, 2024
Current Prior Quarter Prior Year
Description 3/31/2024 12/31/2023 3/31/2023
Cash Balances on Hand in Banks 20,579,918.33 $ 21,585,813 $ 19,401,453
Local Government Investment Pool (LGIP) 58,606,106 64,779,877 57,714,422
Investment Portfolio 66,000,000 66,000,000 63,000,000
Total Investments 124,606,106 130,779,877 120,714,422
Total Cash and Investments $ 145,186,024 $ 152,365,690 $ 140,115,875
Beg Balance Purchases Interest Maturities, Calls End Balance
Summary of Investment Activity 12/31/2023 & Deposits Reinvested & Withdrawals 3/31/2024
Local Government Investment Pool (LGIP) $ 64,779,877 $ 2,000,000 $ 826,228 $ (9,000,000) $ 58,606,106
Investment Portfolio 66,000,000 6,000,000 - (6,000,000) 66,000,000
Total Investments $ 130,779,877 $ 8,000,000 $ 826,228 $ (15,000,000) $ 124,606,106
Page 1 of 8 2024 Q1 TSO spreadsheet
City of Yakima
Distribution of Cash and Investments as of 03/31/2024
Depository Banks,
$20,579,918 , 14%
Investment
Portfolio,
66,000,000 , 46%
Local Government
Investment Pool,
$58,606,106 , 40%
Page 2 of 8
City of Yakima
Investment Portfolio-Inventory by Agency
March 31, 2024
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 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 14 998,095 NC Aaa NA AAAu NC 4/14/24
UST 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 30 997,495 NC Aaa NA AAAu NC 4/30/24
UST 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 61 1,989,204 NC Aaa NA AAAu NC 5/31/24
FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 66 994,054 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 76 989,512 NC Aaa NA AAAu NC 6/15/24
UST 1563 9128282N9 2,000,000 2,112,813 2.125 0.352 5/16/21 7/31/24 122 1,978,867 NC Aaa NA AAAu NC 7/31/24
FFCB 1585 3133ENG20 1,000,000 985,011 3.300 4.320 2/3/23 8/15/24 137 992,783 NC Aaa AA+ AA+ NC 8/15/24
UST 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 153 985,840 NC Aaa NA AAAu NC 8/31/24
UST 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 183 1,963,164 NC Aaa NA AAAu NC 9/30/24
UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 214 1,957,188 NC Aaa NA AAAu NC 10/31/24
FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 222 979,673 NC Aaa AA+ AA+ NC 11/8/24
FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 257 983,228 NC Aaa AA+ NA NC 12/13/24
FAMCA 1555 314226RT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 278 975,053 NC NA NA NA NC 1/3/25
UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 334 1,929,863 NC Aaa NA AAAu NC 2/28/25
UST 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 365 1,912,871 NC Aaa NA AAAu NC 3/31/25
UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 395 951,914 NC Aaa NA AAAu NC 4/30/25
UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 395 951,914 NC Aaa NA AAAu NC 4/30/25
UST 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 426 1,894,375 NC Aaa NA AAAu NC 5/31/25
US T 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 456 944,180 NC Aaa NA AAAu NC 6/30/25
UST 1576 91282CAB7 2,000,000 1,843,472 0.250 2.780 4/29/22 7/31/25 487 1,881,641 NC Aaa NA AAAu NC 7/31/25
FNMA 1578 3135G05X7 2,000,000 1,844,334 0.375 2.870 5/12/22 8/25/25 512 1,879,822 NC Aaa AA+ AAA NC 8/25/25
UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 548 934,648 NC Aaa NA AAAu NC 9/30/25
UST 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 579 1,863,359 NC Aaa NA AAAu NC 10/31/25
FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 604 1,936,994 NC Aaa AA+ AA+ NC 11/25/25
UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 640 1,855,391 NC Aaa NA AAAu NC 12/31/25
UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 671 1,928,281 NC Aaa NA AAAu NC 1/31/26
UST 1584 912828P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 686 1,891,563 NC Aaa NA AAAu NC 2/15/26
FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 712 1,980,540 NC Aaa AA+ NA NC 3/13/26
FNMA 1583 3135G0K36 2,000,000 1,880,612 2.125 4.040 12/13/22 4/24/26 754 1,901,488 NC Aaa AA+ AAA NC 4/24/26
UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 791 1,843,047 NC Aaa NA AAAu NC 5/31/26
FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 803 1,965,285 NC Aaa AA+ NA NC 6/12/26
FFCB 1590 3133EPPE9 2,000,000 1,975,386 4.375 4.840 8/29/23 7/6/26 827 1,988,121 NC Aaa AA+ AA+ NC 7/6/26
UST 1592 91282CHU8 2,000,000 1,987,798 4.375 4.610 11/9/23 8/15/26 867 1,992,891 NC Aaa NA AAAu NC 8/15/26
FAMCA 1591 31422X6U1 2,000,000 1,987,142 4.625 4.860 9/22/23 9/8/26 891 2,001,452 NC NA NA NA NC 9/8/26
FFCB 1593 3133EJM97 2,000,000 1,917,609 3.350 4.860 11/14/23 10/30/26 943 1,944,923 NC Aaa AA+ AA+ NC 10/30/26
FHLB 1594 3130AXU63 1,000,000 1,008,210 4.625 4.322 12/14/23 11/17/26 961 1,002,877 NC Aaa AA+ NA NC 11/17/26
FAMCA 1595 31424WCQ3 2,000,000 2,024,358 4.500 4.060 12/15/23 12/4/26 978 1,996,528 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 1,024 1,969,262 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 1,048 1,981,973 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 1,079 1,926,427 NC Aaa AA+ AA+ NC 3/15/27
Subtotal 40 66,000,000 64,914,714 Avg. 64,035,787
LGIP LGIP NA 58,606,106 58,606,106 5.440 5.428 NA NA 1 58,606,106 NC NA NA
Grand Totals $ 124,606,106 $ 123,520,820 3.71% 299 $ 122,641,893
Page 3 of 8 2024 Q1 TSO spreadsheet
City of Yakima
Investment Portfolio by Issuer at 03/31/2024
US T, 36,000,000, 29% FAMCA, 6,000,000, 5%
FHLB, 6,000,000, 5%
FNMA, 4,000,000, 3%
FFCB, 14,000,000, 11%
Diversifying by issuer reduces
the credit risk the city is
subject to from any one
issuer as well as diversifies
LGIP, 58,606,106, 47%
market price fluctuations
which can vary by issuer.
Page 4 of 8 2024 Q1 TSO spreadsheet
Page 5 of 8
City of Yakima
Investment Portfolio Maturity Distribution at 03/31/2024
$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
$1,000,000111111111111111
$500,000
$0
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a g a � o z o � g a g a � o z o � g a g a , o z o � �
Page 5 of 8 2024 Q1 TSO spreadsheet
City of Yakima 10
Investment Portfolio-Detail of Activity
March 31,2024
Beginning Additions and Calls and Ending
Agency Inv# Face Value Purchases Maturities Face Value
Farmer Mac
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 1595 2,000,000 2,000,000
FAMCA Total 7,000,000 - (1,000,000) 6,000,000
Federal Farm Credit Bureau
FFCB 1538 1,000,000 - 1,000,000
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 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 8,000,000 6,000,000 - 14,000,000
Federal Home Loan Bank
FHLB 1554 1,000,000 - - 1,000,000
FHLB 1585 1,000,000 (1,000,000) -
FHLB 1587 2,000,000 2,000,000
FHLB 1594 1,000,000 1,000,000
FHLB 1589 2,000,000 2,000,000
FHLB Total 7,000,000 - (1,000,000) 6,000,000
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 - (2,000,000) 4,000,000
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 1592 2,000,000 2,000,000
US Treasury 38,000,000 - (2,000,000) 36,000,000
Subtotal 66,000,000 6,000,000 (6,000,000) 66,000,000
Other Investments - - - -
LGIP(State Pool) LGIP 64,779,877 2,826,228 (9,000,000) 58,606,106
Other Investment Totals 64,779,877 2,826,228 (9,000,000) 58,606,106
Grand Totals $ 130,779,877 $ 8,826,228 $ (15,000,000) $ 124,606,106
Page 6 of 8 2024 Q1 TSO spreadsheet
City of Yakima
Long Term Debt Schedule-by Project Group
March 31,2024
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 1,804,726
6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 1,610,000
9/24/2018 6/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,488,579
9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,801,261
4/21/2020 12/1/2032 2020B Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 3,555,000
4/21/2020 12/1/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 11,310,000
4/21/2020 12/1/2044 2020B Convention Center Addition III Refu_2020B Convention Center Addition III Refunded 2,495,000 2,235,000
Subtotal General Obligation Bonds 49,115,000 31,804,567
Certificate of Participation-State of Washington
9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,683 427,183
7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project(lighting) 1,415,000 1,210,000
9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 587,719
Subtotal Certificates of Participation 3,604,736 2,224,901
Revenue Bonds
4/21/2020 12/1/2034 2020 Ref 04 Irrigation 2020 Ref 04 Irrigation 3,260,000 2,525,000
4/21/2020 12/1/2027 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 1,430,000
Subtotal Revenue Bonds 5,850,000 3,955,000
Intergovernmental Loans
8/14/2009 7/1/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 825,501
5/6/2010 6/1/2034 L1000030-0 2010 Railroad Grade Separation 1,229,295 759,032
6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,090,000
6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 398,310
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
7/17/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 331,903
3/2/2021 6/1/2032 21 Yak Co Seid-SOZO 2021 Yakima Co SEID Loan SOZO 1,000,000 937,544
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 94,145
12/30/2005 6/1/2025 PW-05-691-064 2005 River Road Sewer 2,307,000 248,492
4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 485,556
4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 605,744
10/10/2011 3/31/2033 L1100008 2011 Energy Efficiency 516,192 275,164
8/1/2011 7/1/2034 L1200019 2012 Industrial Waste Anaerobic 587,173 359,821
6/1/2012 6/1/2031 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,152,633
10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,138,756
8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 2,368,421
12/31/2021 6/1/2039 PC20-96103-044 2020 Waterline Improvements 1,737,906 1,544,806
12/12/2013 10/1/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 1,933,140
Subtotal Intergovernmental Loans 35,250,527 16,291,188
Page 7 of 8 2024 Q1 TSO spreadsheet
City of Yakima
Interfund Borrowing
March 31,2024
Original Beginning Ending
Description Balance Balance Issued Retired Balance
Millsite 1,800,000.00 752,015.53 752,015.53
Nelson Dam 3,299,691.00 2,099,803.32 299,971.92 1,799,831.40
Total across all funds 5,099,691.00 2,851,818.85 - 299,971.92 2,551,846.93
Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow.
Page 8 of 8 2024 Q1 TSO spreadsheet
13
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FINANCE
Committee Review of Investment Rationale
Date: January 16, 2024
Investment# 2024-1596 is a 3-year Federal Farm Credit Bank, face value $2,000,000,
maturing January 19 2027, 3.87% coupon purchased at 99.7617 to yield 3.96%. This
trade settles January 19, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At December 31st , month-end, Key Bank checking account balance was $9.9
million (target minimum is $3 Million), US Bank checking balance was $8.7 million and an
investment portfolio was $66.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $66.4 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 3.96%. This investment is 147 basis points under LGIP and 4 basis points
over a 3-year treasury, seeking to protect yield in an uncertain environment. Comparable
yields are:
LGIP current 30-day yield 5.4315% www.secureaccess.wa.gov
5year Treasury 3.8400% Treasury.gov J
3-year Treasury 3.9200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 7.6% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. The yield curve is starting to move in a downward trend; the 1-year Treasury at
4.65%, the 2-year at 4.14%, the 3-year at 3.92%, and the 5-year at 3.84%. We are also
still seeing an inverted yield curve, meaning that the rate goes lower the longer the term.
Investment Committee review:
Finance Director: /1/4Date_\ ' 1 - 2-14
er int City Manag Date 11 US Ptrat4
• 14
FINANCE
Committee Review of Investment Rationale
Date: February 7, 2024
Investment# 2024-1597 is a 3-year Federal Farm Credit Bank, face value $2,000,000,
maturing February 12, 2027, 4.125% coupon purchased at 100.00 to yield 4.125%.
This trade settles February 12, 2024 with Hilltop Securities Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At January 31st , month-end, Key Bank checking account balance was $8.1
million (target minimum is $3 Million), US Bank checking balance was $9.1 million and an
investment portfolio was $66.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $62.1 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 4.16%. This investment is 127 basis points under LGIP and equal to the 3-
year treasury, seeking to protect yield in an uncertain environment. Comparable yields
are:
LGIP current 30-day yield_ 5.4340% www.secureaccess.wa.gov
f 5year Treasury j 4.0600% Treasury.gov
3-year Treasury 14.1600% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 9.4% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Since peaking in mid-October, interest rates are down very sharply on increased
expectations that the Federal Reserve will begin lowering short-term interest rates in the
near-term. We are also still seeing an inverted yield curve, meaning that the rate goes lower
the longer the term, currently the 1-year Treasury is at 4.83%, the 2-year at 4.41%, the 3-
year at 4.16%, and the 5-year at 4.06%.
Investment Committee review:
Finance Direct Date 1
0 6 c2-1/
thy;lry-N City Manager: Date i".10- 4-k
15
FINANCE
Committee Review of Investment Rationale
Date: March 20, 2024
Investment# 2024-1598 is a 3-year Federal Farm Credit Bank, face value $2,000,000,
maturing March 15, 2027, 3.125% coupon purchased at 96.4168 to yield 4.42%. This
trade settles March 21, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At February 29th, month-end, Key Bank checking account balance was $7.4
million (target minimum is $3 Million), US Bank checking balance was $8.4 million and an
investment portfolio was $66.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $61.3 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 4.42. This investment is 101 basis points under LGIP and 1 bases point
over the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-dayyield 5.4261 www.secureaccess.wa.gov
5year Treasury , %4.2500 % Treasury.gov
3-year Treasury 4.4100% I Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 10.8% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Since peaking in mid-October, interest rates are down very sharply on increased
expectations that the Federal Reserve will begin lowering short-term interest rates in the
near-term. We are also still seeing an inverted yield curve, meaning that the rate goes lower
the longer the term, currently the 1-year Treasury is at 5.01%, the 2-year at 4.59%, the 3-
year at 4.41%, and the 5-year at 4.25%.
Investment Committee review:
Finance Direct•; - '4 Date Val/c9131Q
City Manager: /1 Date � I