HomeMy WebLinkAbout07/16/2024 07.B. 2024 2nd Quarter Treasury Report r `y � ljlt
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.B.
For Meeting of: July 16, 2024
ITEM TITLE: 2024 2nd Quarter Treasury Report
SUBMITTED BY: Rosylen Oglesby, Interim Director of Finance and Budget
Kimberly Domine, Financial Services Manager
SUMMARY EXPLANATION:
The Treasury Report for the second quarter of 2024 is attached and consists of the following:
• 2nd Quarter Treasurer's Report
• Cash and Investments
• Long Term Debt
• Interfund Borrowings
ITEM BUDGETED: N/A
STRATEGIC PRIORITY: Fiscal Sustainability
RECOMMENDATION: Review only. Submitted for routine transparency and accountability purposes.
ATTACHMENTS:
2024 Q2 Treasury Report.pdf
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FINANCE
Date: July 1, 2024
WPTA
To: Mayor and City Council CERTltlCAT.OFExcELLENCE
CITY OF YAKIMA
Thru: Dave Zabell, Interim City Manager '
From: Rosylen Oglesby, Assistant City Manager/Interim
Director of Finance and Budget
Kimberly Domino Financial Services Manager
Re: 2024 —2nd 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 and again in April 2024.
Total Cash and Investments at Quarter-end total $150.6 million: $21.2 million in depository
banks, $57.4 million in the State Pool, and $72.0 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
$1 000 000 1r
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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:
• 1565 $1,000,000 US Treasury matured 04/15/2024
• 1553 $1,000,000 US Treasury matured 04/30/2024
• 1562 $2,000,000 US Treasury matured 05/31/2024
• 1533 $1,000,000 FAMCA matured 06/5/2024
• 1566 $1,000,000 US Treasury matured 06/15/2024
Purchases: During the last quarter, the following were purchased:
• 1599 $2,000,000 FAMCA to mature 04/16/2027
• 1600 $2,000,000 US Treasury to mature 05/31/2027
• 1601 $1,000,000 US Treasury to mature 11/14/2024
• 1602 $1,010,000 FNMA to mature 01/07/2025
• 1603 $2,000,000 FHLB to mature 06/11/2027
• 1604 $1,000,000 FHLB to mature 09/12/2025
• 1605 $1,000,000 FAMCA to mature 06/09/25
• 1606 $2,000,000 US Treasury to mature 07/31/2027
Portfolio and Benchmark Yield and Maturity:
Avg. weighted yield of City investments, excluding LGIP: 3.76%
LGIP State Pool 30-day yield: 5.43%
Weighted average maturity of City investments, excluding LGIP: 318 days
Weighted average maturity of LGIP State Pool 30-day yield: 17 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.
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FINANCE
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 June 30, 2024, the fixed income market still shows an inverted market with
the1-year Treasury currently at 76 basis points higher than the 5-year Treasury, yielding 5.09%
and 4.33% respectively. The 30-day yield of the State Pool remained unchanged from last quarter
at 5.43%, with the Weighted Average to maturity decreasing from a 23-day avg. to a 17-day
average over last quarter.
Economic Outlook. After the Federal Reserve's June meeting, it was decided to hold interest
rates steady. The federal funds target rate has remained at 5.25% to 5.5% since July 2023. The
Personal Consumer Expenditures (PCE) Index is projected to fall to 2.1% by fourth-quarter 2024,
averaging 2.3% for the year.
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 57,390,103 44%
Treasuries 36,000,000 28%
Agencies 36,010,000 28%
129,400,103 100%
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 and is due to be paid in full September 2025.
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City of Yakima
Cash and Investment Summary
June 30, 2024
Current Prior Quarter Prior Year
Description 6/30/2024 3/31/2024 6/30/2023
Cash Balances on Hand in Banks 21,192,826.13 $ 20,579,918 $ 20,577,896
Local Government Investment Pool (LGIP) 57,390,103 58,606,106 57,714,422
Investment Portfolio 72,010,000 66,000,000 63,000,000
Total Investments 129,400,103 124,606,106 120,714,422
Total Cash and Investments $ 150,592,929 $ 145,186,024 $ 141,292,318
Beg Balance Purchases Interest Maturities, Calls End Balance
Summary of Investment Activity 3/31/2024 & Deposits Reinvested & Withdrawals 6/30/2024
Local Government Investment Pool (LGIP) $ 58,606,106 $ 4,000,000 $ 783,997 $ (6,000,000) $ 57,390,103
Investment Portfolio 66,000,000 12,010,000 - (6,000,000) 72,010,000
Total Investments $ 124,606,106 $ 16,010,000 $ 783,997 $ (12,000,000) $ 129,400,103
Page 1 of 8 2024 Q2 TSO spreadsheet
24
City of Yakima
Distribution of Cash and Investments as of 06/30/2024
Depository Banks,
$21,192,826 , 14%
Investment
Portfolio,
72,010,000 , 48%
Local Government
Investment Pool,
$57,390,103 , 38%
Page 2 of 8
25
City of Yakima
Investment Portfolio-Inventory by Agency
June 30, 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
UST 1563 9128282N9 2,000,000 2,112,813 2.125 0.352 5/16/21 7/31/24 31 1,994,128 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 46 996,973 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 62 993,620 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 92 1,980,286 NC Aaa NA AAAu NC 9/30/24
UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 123 1,973,672 NC Aaa NA AAAu NC 10/31/24
FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 131 986,107 NC Aaa AA+ AA+ NC 11/8/24
UST 1601 912797LD7 1,000,000 974,253 0.000 5.300 5/16/24 11/14/24 137 980,115 NC Aaa NA AAAu NC 11/14/24
FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 166 988,246 NC Aaa AA+ NA NC 12/13/24
FAMCA 1555 314226RT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 187 982,721 NC NA NA NA NC 1/3/25
FNMA 1602 3135G0X24 1,010,000 987,355 1.625 5.220 5/16/24 1/7/25 191 990,605 NC NA NA NA NC 1/7/25
UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 243 1,945,996 NC Aaa NA AAAu NC 2/28/25
UST 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 274 1,930,879 NC Aaa NA AAAu NC 3/31/25
UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 304 960,898 NC Aaa NA AAAu NC 4/30/25
US T 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 304 960,898 NC Aaa NA AAAu NC 4/30/25
UST 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 335 1,911,563 NC Aaa NA AAAu NC 5/31/25
FAMCA 1605 31422X3X8 1,000,000 995,789 4.650 5.100 6/21/24 6/9/25 344 995,488 NC NA NA NA NC 6/9/25
UST 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 365 952,734 NC Aaa NA AAAu NC 6/30/25
US T 1576 91282CAB7 2,000,000 1,843,472 0.250 2.780 4/29/22 7/31/25 396 1,898,750 NC Aaa NA AAAu NC 7/31/25
FNMA 1578 3135G05X7 2,000,000 1,844,334 0.375 2.870 5/12/22 8/25/25 421 1,895,637 NC Aaa AA+ AAA NC 8/25/25
FHLB 1604 3130B0Z44 1,000,000 1,001,445 5.125 5.000 6/21/24 9/12/25 439 1,000,597 NC Aaa AA+ NA NC 9/12/25
UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 457 942,578 NC Aaa NA AAAu NC 9/30/25
UST 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 488 1,878,906 NC Aaa NA AAAu NC 10/31/25
FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 513 1,941,017 NC Aaa AA+ AA+ NC 11/25/25
UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 549 1,869,844 NC Aaa NA AAAu NC 12/31/25
UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 580 1,931,484 NC Aaa NA AAAu NC 1/31/26
UST 1584 912828P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 595 1,899,219 NC Aaa NA AAAu NC 2/15/26
FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 621 1,976,841 NC Aaa AA+ NA NC 3/13/26
FNMA 1583 3135G0K36 2,000,000 1,880,612 2.125 4.040 12/13/22 4/24/26 663 1,908,311 NC Aaa AA+ AAA NC 4/24/26
UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 700 1,854,219 NC Aaa NA AAAu NC 5/31/26
FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 712 1,962,491 NC Aaa AA+ NA NC 6/12/26
FFCB 1590 3133EPPE9 2,000,000 1,975,386 4.375 4.840 8/29/23 7/6/26 736 1,984,063 NC Aaa AA+ AA+ NC 7/6/26
UST 1592 91282CHU8 2,000,000 1,987,798 4.375 4.610 11/9/23 8/15/26 776 1,986,797 NC Aaa NA AAAu NC 8/15/26
FAMCA 1591 31422X6U1 2,000,000 1,987,142 4.625 4.860 9/22/23 9/8/26 800 1,996,615 NC NA NA NA NC 9/8/26
FFCB 1593 3133EJM97 2,000,000 1,917,609 3.350 4.860 11/14/23 10/30/26 852 1,941,021 NC Aaa AA+ AA+ NC 10/30/26
FHLB 1594 3130AXU63 1,000,000 1,008,210 4.625 4.322 12/14/23 11/17/26 870 999,087 NC Aaa AA+ NA NC 11/17/26
FAMCA 1595 31424WCQ3 2,000,000 2,024,358 4.500 4.060 12/15/23 12/4/26 887 1,991,406 NC NA NA NA NC 12/4/26
FFCB 1596 3133EPW76 2,000,000 1,995,234 3.875 3.960 1/19/24 1/19/27 933 1,962,885 NC Aaa AA+ AA+ NC 1/19/27
FFCB 1597 3133EP2T1 2,000,000 2,000,000 4.125 4.125 2/12/24 2/12/27 957 1,976,061 NC Aaa AA+ AA+ NC 2/12/27
FFCB 1598 3133EJGF0 2,000,000 1,928,336 3.125 4.420 3/21/24 3/15/27 988 1,925,165 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 1,020 2,011,819 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 1,065 1,897,266 NC Aaa NA AAAu NC 5/31/27
FHLB 1603 313061EF0 2,000,000 2,007,569 4.625 4.490 5/16/24 6/11/27 1,076 2,003,960 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 1,126 1,900,078 NC Aaa NA AA+u NC 7/31/27
Subtotal 43 72,010,000 70,504,787 Avg. 70,061,044
LGIP LGIP NA 57,390,103 57,390,103 5.440 5.428 NA NA 1 57,390,103 NC NA NA
Grand Totals $129,400,103 $ 127,894,890 3.77% 318 $ 127,451,148
Page 3 of 8 2024 Q2 TSO spreadsheet
26
City of Yakima
Investment Portfolio by Issuer at 06/30/2024
FAMCA, 8,000,000, 6%
US T, 36,000,000, 28% FHLB, 9,000,000, 7%
FNMA, 5,010,000, 4%
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, 57,390,103, 44%
market price fluctuations
which can vary by issuer.
Page 4 of 8 2024 Q2 TSO spreadsheet
27
Page 5 of 8
City of Yakima
Investment Portfolio Maturity Distribution at 06/30/2024
$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
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28
City of Yakima
Investment Portfolio-Detail of Activity
June 30,2024
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 1555 1,000,000 1,000,000
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 1605 1,000,000 1,000,000
FAMCA Total 6,000,000 3,000,000 (1,000,000) 8,000,000
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 14,000,000 - - 14,000,000
Federal Home Loan Bank
FHLB 1554 1,000,000 - - 1,000,000
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 Total 6,000,000 3,000,000 - 9,000,000
Federal National Management Association
FNMA 1578 2,000,000 2,000,000
FNMA 1583 2,000,000 2,000,000
FNMA 1602 1,010,000 1,010,000
FNMA Total 4,000,000 1,010,000 - 5,010,000
US Treasury 1546 1,000,000 - - 1,000,000
US Treasury 1553 1,000,000 - (1,000,000) -
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 1600 2,000,000 2,000,000
US Treasury 1601 1,000,000 1,000,000
US Treasury 1606 2,000,000 2,000,000
US Treasury 36,000,000 5,000,000 (5,000,000) 36,000,000
Subtotal 66,000,000 12,010,000 (6,000,000) 72,010,000
Other Investments - - - -
LGIP(State Pool) LGIP 58,606,106 4,783,997 (6,000,000) 57,390,103
Other Investment Totals 58,606,106 4,783,997 (6,000,000) 57,390,103
(Grand Totals $ 124,606,106 $ 16,793,997 $ (12,000,000) $ 129,400,103
Page 6 of 8 2024 Q2 TSO spreadsheet
29
City of Yakima
Long Term Debt Schedule-by Project Group
June 30,2024
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 1,636,929
6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 -
9/24/2018 6/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,362,845
9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,755,337
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 29,855,110
Certificate of Participation-State of Washington
9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,683 326,304
7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project(lighting) 1,415,000 1,135,000
9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 448,930
Subtotal Certificates of Participation 3,604,736 1,910,234
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 3,000,000 660,401
5/6/2010 6/1/2034 L1000030-0 2010 Railroad Grade Separation 1,229,295 727,881
6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,005,000
6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 302,569
11/21/2017 6/1/2024 '17 Yak Co SIED-YV Brewing Project 2017 Yakima Co SIED Loan-YV Brewing Project 61,580 -
7/17/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 281,549
3/2/2021 6/1/2032 21 Yak Co Seid-SOZO 2021 Yakima Co SEID Loan SOZO 1,000,000 843,131
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 2,307,000 124,246
4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 364,167
4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 484,595
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 1,883,554
10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,057,416
8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 2,105,263
12/31/2021 6/1/2039 PC20-96103-044 2020 Waterline Improvements 1,737,906 1,448,255
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 14,678,798
Page 7 of 8 2024 Q2 TSO spreadsheet
30
City of Yakima
Interfund Borrowing
June 30,2024
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 1,799,831.40 299,971.92 1,499,859.48
Total across all funds 5,099,691.00 2,551,846.93 - 299,971.92 2,251,875.01
Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow.
Page 8 of 8 2024 Q2 TSO spreadsheet
31
/-'( ' )''
_.- FINANCE
Committee Review of Investment Rationale
Date: April 16, 2024
Investment#2024-1599 is a 3-year Farmer Mac, face value $2,000,000, maturing April
16, 2027, 4.80% coupon purchased at 99.8343 to yield 4.86. This trade settles April 17,
2024 with Wedbush Securities, Inc., US Bank Safekeeping, reducing our elevated LGIP
position caused by maturities called during 2024.
Liquidity: At March 31st, month-end, Key Bank checking account balance was $9.8 million
(target minimum is $3 Million), US Bank checking balance was $7.7 million and an
investment portfolio was $66.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $58.6 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 4.86. This investment is 56 basis points under LGIP and 8 bases point over
the 3-year treasury, seeking to protect yield in an uncertain environment. Comparable
yields are:
1 LGIP current 30-day yield 5.4243% www.secureaccess.wa.gov
5year Treasury i 4.6500 % Treasury.gov
1 3-year Treasury 4.7800% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 6.3% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Most US Treasury yields climbed to new year-to-date highs, with the 2-year note's
approaching 5%, after hot retail sales data further eroded investor confidence that the
Federal Reserve will start cutting interest rates this year.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 5.16%, the 2-year at 4.93%, the 3-year at 4.78%, and the 5-year at 4.65%.
Investment Committee review:
�� ��_ I Date li
Finance Direct• ••.�J... x�, ,�,i 7�17j
6 leAqp
City Manager: 1Láid.1/ Date
ill
32
;4 ';t
_.� 'f FINANCE
Committee Review of Investment Rationale
Date: April 16, 2024
Investment#2024-1600 is a 5-year US Treasury, face value $2,000,000, maturing May
31, 2027, 2.62% coupon purchased at a deep discount of 93.9000 to yield 4.75. This
trade settles April 17, 2024 with Hilltop Securities, Inc., US Bank Safekeeping, reducing our
elevated LGIP position caused by maturities called during 2024.
Liquidity: At March 31st, month-end, Key Bank checking account balance was $9.8 million
(target minimum is $3 Million), US Bank checking balance was $7.7 million and an
investment portfolio was $66.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $58.6 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal Government, equivalent to Aaa/AA+
rating by Moody's and Fitch
Yield. Yield is 4.75. This investment is 67 basis points under LGIP and 3 bases point
under the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:LLGIP current 30-day yield 5.4243% 1 www.secureaccess.wa.gov_,
5year Treasury 4.6500 % Treasury.gov
3-year Treasury 4.7800% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 29% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Most US Treasury yields climbed to new year-to-date highs, with the 2-year note's
approaching 5%, after hot retail sales data further eroded investor confidence that the
Federal Reserve will start cutting interest rates this year.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 5.16%, the 2-year at 4.93%, the 3-year at 4.78%, and the 5-year at 4.65%.
Investment Committee review:
Finance Director:OP
;J_„ AY ,. .ate. Date 111► I aka y
0 ma
City Manager: s
Date 41 t/11 94'
33
rf', l:lam
FINANCE
Committee Review of Investment Rationale
Date: May 15, 2024
Investment # 2024-1601 is a 6-month US Treasury, face value $1,000,000, maturing
November 14, 2024, no coupon, purchased at a discount of 97.4253 to yield 5.30. This
trade settles May 16, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At April 30th, month-end, Key Bank checking account balance was $7.2 million
(target minimum is $3 Million), US Bank checking balance was $9.2 million and an
investment portfolio was $68.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $58.9 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal Government, equivalent to Aaa/AA+
rating by Moody's and Fitch
Yield. Yield is 5.30. This investment is 12 basis points under LGIP and 68 bases point
over the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4163% www.secureaccess.wa.gov
5year Treasury 4.4600 % Treasury.gov
3-year Treasury 4.6200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 28.3% of total portfolio.
This investment added to an existing maturity date in the City's laddered portfolio to take
advantage of the higher rates that are a result of this inverted market .
Outlook. As recently as their last meeting on March 20, the officials had projected three
rate reductions in 2024, likely starting in June. But given the persistence of elevated
inflation, financial markets now expect just one rate cut this year, in November, according
to futures prices tracked by CME FedWatch.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
5.16%, the 2-year at 4.81%, the 3-year at 4.62%, and the 5-year at 4.46%.
Investment Committee review:
Finance Direct° Date 14
City Manager: Date l 0 -
34
r
---)'Lk • r-1)
FINANCE
Committee Review of Investment Rationale
Date: May 15, 2024
Investment # 2024-1602 is a 5-year Fannie Mae, face value $1,010,000, maturing
January 07, 2025, 1.68% coupon, purchased at a discount of 97.7579 to yield 5.22.
This trade settles May 16, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At April 30th, month-end, Key Bank checking account balance was $7.2 million
(target minimum is $3 Million), US Bank checking balance was $9.2 million and an
investment portfolio was $68.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $58.9 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 5.22. This investment is 20 basis points under LGIP and 60 bases point
over the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4163% www.secureaccess.wa.gov
5 ear Treasu 4.4600 % Treasury.gov
3- ear Treasu 4.6200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 3.8% of total portfolio.
This investment added to an existing maturity date in the City's laddered portfolio to take
advantage of the higher rates that are a result of this inverted market.
Outlook. As recently as their last meeting on March 20, the officials had projected three
rate reductions in 2024, likely starting in June. But given the persistence of elevated
inflation, financial markets now expect just one rate cut this year, in November, according
to futures prices tracked by CME FedWatch. 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
5.16%, the 2-year at 4.81%, the 3-year at 4.62%, and the 5-year at 4.46%.
Investment Committee review:
Finance Direct : Date 5 I S 1i-
.
,,
City Manager: Date I I LP !
35
FINANCE
Committee Review of Investment Rationale
Date: May 15, 2024
Investment# 2024-1603 is a 3-year Federal Home Loan Bank, face value $2,000,000,
maturing June 11, 2027, 4.62% coupon, purchased at a Premium of 100.3785 to yield
4.49. This trade settles May 16, 2024 with Hilltop Securities, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At April 30th, month-end, Key Bank checking account balance was $7.2 million
(target minimum is $3 Million), US Bank checking balance was $9.2 million and an
investment portfolio was $68.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $58.9 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 4.49. This investment is 93 basis points under LGIP and 3 bases point over
the 5-year treasury, seeking to protect yield in an uncertain environment. Comparable
yields are:
LGIP current 30-da rLyield 15.4163% www.secureaccess.wa. ov
5-year Treasury 4.4600 % Treasury.gov
3-year Treasury 4.6200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 6.1% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. As recently as their last meeting on March 20, the officials had projected three
rate reductions in 2024, likely starting in June. But given the persistence of elevated
inflation, financial markets now expect just one rate cut this year, in November, according
to futures prices tracked by CME FedWatch. 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
5.16%, the 2-year at 4.81%, the 3-year at 4.62%, and the 5-year at 4.46%.
Investment Committee review:
Finance Director Date -/ o2Gk v
City Manager: Date 'J 1 c) Lt
36
` FINANCE
Committee Review of Investment Rationale
Date: June 20, 2024
Investment# 2024-1604 is a 1-Year Federal Home Loan Bank, face value $1,000,000,
maturing September 12, 2025, 5.20% coupon, purchased at 100.1445 to yield 5.000.
This trade settles June 21, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At May 31st month-end, Key Bank checking account balance was $11.1 million
(target minimum is $3 Million), US Bank checking balance was $13.6 million and an
investment portfolio was $70.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $57.1 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 5.00. This investment is 42 basis points under LGIP and is 55 basis points
over the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4249% www.secureaccess.wa.gov
5year Treasury 1 4.2600 % Treasury.gov
3-year Treasury 1 4.4500% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 7.0% of total portfolio.
This investment added to an existing maturity date in the City's laddered portfolio to take
advantage of the higher rates that are a result of this inverted market .
Outlook. Economic growth is projected to slow from 3.1 percent in calendar year 2023 to
2.0 percent in 2024 amid higher unemployment and slightly lower inflation. Congressional
Budget Office expects the Federal Reserve to respond by reducing interest rates, starting
in early 2025.
Investment Committee review:
Finance Direct() Date b/f 7
City Manager: Date t i Q(p I
37
FINANCE
Committee Review of Investment Rationale
Date: June 20, 2024
Investment#2024-1605 is a 2-Year Farmer Mac, face value $1,000,000, maturing June
9, 2025, 4.65% coupon, purchased at a discount of 99.5789 to yield 5.10. This trade
settles June 21, 2024 with Time Value Investments, Inc., US Bank Safekeeping, reducing
our elevated LGIP position caused by maturities called during 2024.
Liquidity: At May 31st month-end, Key Bank checking account balance was $11.1 million
(target minimum is $3 Million), US Bank checking balance was $13.6 million and an
investment portfolio was $70.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $57.1 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 5.10. This investment is 32 basis points under LGIP and is 65 basis points
over the 3-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4249% www.secureaccess.wa. ov
5year Treasury 4.2600 % 1 Treasury.gov
3-year Treasury 4.4500% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 6.2% of total portfolio.
This investment added to an existing maturity date in the City's laddered portfolio to take
advantage of the higher rates that are a result of this inverted market .
Outlook. Economic growth is projected to slow from 3.1 percent in calendar year 2023 to
2.0 percent in 2024 amid higher unemployment and slightly lower inflation. Congressional
Budget Office expects the Federal Reserve to respond by reducing interest rates, starting
in early 2025.
Investment Committee review:
Finance Directo . Date 6/02VG a
City Manager: Date exPae ) -a-ryi_t
38
1-4"'
T '
FINANCE
Committee Review of Investment Rationale
Date: June 20, 2024
Investment#2024-1606 is a 5 Year US Treasury, face value $2,000,000, maturing July
31, 2027, 2.75% coupon, purchased at a discount of 95.109375 to yield 4.450. This
trade settles June 21, 2024 with Wedbush Securities, Inc., US Bank Safekeeping, reducing
our elevated LGIP position caused by maturities called during 2024.
Liquidity: At May 31st month-end, Key Bank checking account balance was $11.1 million
(target minimum is $3 Million), US Bank checking balance was $13.6 million and an
investment portfolio was $70.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $57.1 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal Government, equivalent to Aaa/AA+
rating by Moody's and Fitch
Yield. Yield is 4.45. This investment is 97 basis points under LGIP and is equal to the 3-
year treasury, seeking to protect yield in an uncertain environment. Comparable yields
are:
LGIP current 30-day yield 1 5.4249% www.secureaccess.wa.gov
5year Treasury I 4.2600 % Treasury.gov
3-year Treasury 1 4.4500% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 27.9% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook Economic growth is projected to slow from 3.1 percent in calendar year 2023 to 2.0
percent in 2024 amid higher unemployment and slightly lower inflation. Congressional Budget Office
expects the Federal Reserve to respond by reducing interest rates, starting in early 2025.
Investment Committee review:
Finance Direc r: Date (o icatglaQ
City Manager: Date I c
39