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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.C.
For Meeting of: October 15, 2024
ITEM TITLE: 2024 3rd Quarter Treasury Report
SUBMITTED BY: Viren Mayani, 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 Borrowing
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Review only. Submitted for routine transparency and accountability purposes.
ATTACHMENTS:
2024 Q3 Treasury Report.pdf
18
FINANCE
Date: October 1, 2024 r,
WPTA ?nl
CERTIF)CT 9K1 cEllE ICE
To: Mayor and City Council =.
CRY OF YAKIMA
1024
Thru: Victoria Baker, City Manager
From: Viren Mayani, Director of Finance and Budget
Kimberly Domine, Financial Services Manager
Re: 2024— 3rd 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 $149.6 million: $23.5 million in depository
banks, $50.1 million in the State Pool, and $76.0 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
-07
$120,000,000 L��—
$100,000,000 - -.
rnn o r1-11-7—' -
■
$80,000,000
$60,000,000 r �=.I•0•101
$40,000,000 I'
$20,000,000
$G
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■Portfolio(par) ❑Primary Acct ■Key Checking ❑USB Checking
19
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:
• 1563 $2,000,000 US Treasury matured 07/31/2024
• 1586 $1,000,000 FFCB matured 08/15/2024
• 1546 $1,000,000 US Treasury matured 08/31/2024
• 1564 $2,000,000 US Treasury matured 09/30/2024
Purchases: During the last quarter, the following were purchased:
• 1607 $2,000,000 US Treasury to mature 08/15/2027
• 1608 $2,000,000 FHLB to mature 09/10/2027
• 1609 $2,000,000 FNMA to mature 10/08/2027
• 1610 $2,000,000 FHLB to mature 11/18/2027
• 1611 $2,000,000 US Treasury to mature 12/31/2027
Portfolio and Benchmark Yield and Maturity:
Avg. weighted yield of City investments, excluding LGIP: 3.59%
LGIP State Pool 30-day yield: 5.25%
Weighted average maturity of City investments, excluding LGIP: 364 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.
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
2
20
FINANCE
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 September 30, 2024, the fixed income market still shows an inverted market
with thel-year Treasury currently at 45 basis points higher than the 5-year Treasury, yielding
3.96% and 3.51% respectively. The 30-day yield of the State Pool dropped slightly from last
quarter from 5.43% to 5.24% with the Weighted Average to maturity decreasing from a 17-day
avg. to a 14-day average over last quarter.
Economic Outlook. The Federal Reserve made its biggest cut to the benchmark rate in 16 years
last week, reducing the benchmark rate by 50 basis points. The first rate cut in 4 years brings the
benchmark rate to a range of 4.75% to 5%. A decreasing interest-rate environment will,
eventually, help change the landscape for stocks and, hopefully, real estate. Fed officials have
predicted that the benchmark rate will continue to be lowered before the end of 2024. Some
expect the federal funds target rate to fall to 4.5% by the end of 2024, 3.5% by the end of 2025,
and 3.0% by June 2026.
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 %
G I P 50.087.911 40%
Treasjries 35;000.000 28%
Aae is ics 41 ,010;000 33°I0
126,097,911 100%
Debt Activity
All debt payments were paid out as scheduled. A comprehensive city-wide debt report is attached
with current balances.
Interfund Borrowincis 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. It
was determined that the Nelson Project needed more than the original amount loaned so an
increase was given with payment schedule extended out an additional two years.
3
21
City of Yakima
Cash and Investment Summary
September 30, 2024
Current Prior Quarter Prior Year
Description 9/30/2024 6/30/2024 9/30/2023
Cash Balances on Hand in Banks 23,481,983.60 $ 21,192,826 $ 21,250,973
Local Government Investment Pool (LGIP) 50,087,911 57,390,103 62,890,167
Investment Portfolio 76,010,000 72,010,000 64,000,000
Total Investments 126,097,911 129,400,103 126,890,167
Total Cash and Investments $ 149,579,895 $ 150,592,929 $ 148,141,140
Beg Balance Purchases Interest Maturities, Calls End Balance
Summary of Investment Activity 6/30/2024 & Deposits Reinvested & Withdrawals 9/30/2024
Local Government Investment Pool (LGIP) $ 57,390,103 $ - $ 697,808 $ (8,000,000) $ 50,087,911
Investment Portfolio 72,010,000 10,000,000 - (6,000,000) 76,010,000
Total Investments $ 129,400,103 $ 10,000,000 $ 697,808 $ (14,000,000) $ 126,097,911
Page 1 of 8 2024 Q3 TSO spreadsheet
22
City of Yakima
Distribution of Cash and Investments as of 09/30/2024
Depository Banks,
$23,481,984 , 16%
Investment
Portfolio,
76,010,000 , 51%
Local Government
Investment Pool,
$50,087,911 , 33%
Page 2 of 8
23
City of Yakima
Investment Portfolio-Inventory by Agency
September 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
US T 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 31 1,994,388 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 39 996,579 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 45 994,226 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 74 995,904 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 95 992,639 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 99 1,002,004 NC NA NA NA NC 1/7/25
US T 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 151 1,972,813 NC Aaa NA AAAu NC 2/28/25
US T 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 182 1,962,531 NC Aaa NA AAAu NC 3/31/25
US T 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 212 977,715 NC Aaa NA AAAu NC 4/30/25
US T 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 212 977,715 NC Aaa NA AAAu NC 4/30/25
US T 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 243 1,948,828 NC Aaa NA AAAu NC 5/31/25
FAMCA 1605 31422X3X8 1,000,000 995,789 4.650 5.100 6/21/24 6/9/25 252 1,002,523 NC NA NA NA NC 6/9/25
US T 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 273 972,102 NC Aaa NA AAAu NC 6/30/25
UST 1576 91282CAB7 2,000,000 1,843,472 0.250 2.780 4/29/22 7/31/25 304 1,939,234 NC Aaa NA AAAu NC 7/31/25
FNMA 1578 3135G05X7 2,000,000 1,844,334 0.375 2.870 5/12/22 8/25/25 329 1,936,858 NC Aaa AA+ AAA NC 8/25/25
FHLB 1604 3130B0Z44 1,000,000 1,001,445 5.125 5.000 6/21/24 9/12/25 347 1,010,491 NC Aaa AA+ NA NC 9/12/25
US T 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 365 964,461 NC Aaa NA AAAu NC 9/30/25
US T 1580 91282CAT8 2,000,000 1,818,516 0.250 3.273 8/24/22 10/31/25 396 1,923,828 NC Aaa NA AAAu NC 10/31/25
FFCB 1579 3133ENXQ8 2,000,000 1,992,128 2.800 2.920 6/7/2022 11/25/25 421 1,981,713 NC Aaa AA+ AA+ NC 11/25/25
UST 1581 91282CBC4 2,000,000 1,807,440 0.375 3.490 9/12/22 12/31/25 457 1,917,813 NC Aaa NA AAAu NC 12/31/25
UST 1582 9128286A3 2,000,000 1,891,374 2.625 4.450 11/9/22 1/31/26 488 1,971,484 NC Aaa NA AAAu NC 1/31/26
US T 1584 912828P46 2,000,000 1,877,584 1.625 3.750 1/18/23 2/15/26 503 1,944,141 NC Aaa NA AAAu NC 2/15/26
FHLB 1587 3130AUU36 2,000,000 1,984,286 4.125 4.400 2/22/2023 3/13/26 529 2,011,279 NC Aaa AA+ NA NC 3/13/26
FNMA 1583 3135G0K36 2,000,000 1,880,612 2.125 4.040 12/13/22 4/24/26 571 1,952,843 NC Aaa AA+ AAA NC 4/24/26
UST 1588 91282CCF6 2,000,000 1,822,350 0.750 3.800 4/19/23 5/31/26 608 1,907,500 NC Aaa NA AAAu NC 5/31/26
FHLB 1589 3130AVWS7 2,000,000 2,014,500 3.750 3.500 5/5/23 6/12/26 620 2,004,122 NC Aaa AA+ NA NC 6/12/26
FFCB 1590 3133EPPE9 2,000,000 1,975,386 4.375 4.840 8/29/23 7/6/26 644 2,026,582 NC Aaa AA+ AA+ NC 7/6/26
UST 1592 91282CHU8 2,000,000 1,987,798 4.375 4.610 11/9/23 8/15/26 684 2,027,969 NC Aaa NA AAAu NC 8/15/26
FAMCA 1591 31422X6U1 2,000,000 1,987,142 4.625 4.860 9/22/23 9/8/26 708 2,037,610 NC NA NA NA NC 9/8/26
FFCB 1593 3133EJM97 2,000,000 1,917,609 3.350 4.860 11/14/23 10/30/26 760 1,986,015 NC Aaa AA+ AA+ NC 10/30/26
FHLB 1594 3130AXU63 1,000,000 1,008,210 4.625 4.322 12/14/23 11/17/26 778 1,021,810 NC Aaa AA+ NA NC 11/17/26
FAMCA 1595 31424WCQ3 2,000,000 2,024,358 4.500 4.060 12/15/23 12/4/26 795 2,036,703 NC NA NA NA NC 12/4/26
FFCB 1596 3133EPW76 2,000,000 1,995,234 3.875 3.960 1/19/24 1/19/27 841 2,012,103 NC Aaa AA+ AA+ NC 1/19/27
FFCB 1597 3133EP2T1 2,000,000 2,000,000 4.125 4.125 2/12/24 2/12/27 865 2,029,052 NC Aaa AA+ AA+ NC 2/12/27
FFCB 1598 3133EJGF0 2,000,000 1,928,336 3.125 4.420 3/21/24 3/15/27 896 1,983,419 NC Aaa AA+ AA+ NC 3/15/27
FAMCA 1599 31424WHG0 2,000,000 1,996,686 4.800 4.860 4/17/24 4/16/27 928 2,060,258 NC Aaa NA AAAu NC 4/16/27
UST 1600 91282CET4 2,000,000 1,878,000 2.625 4.751 4/17/24 5/31/27 973 1,955,078 NC Aaa NA AAAu NC 5/31/27
FHLB 1603 3130B1EF0 2,000,000 2,007,569 4.625 4.490 5/16/24 6/11/27 984 2,055,870 NC Aaa NA AAAu NC 6/11/27
UST 1606 91282C F B2 2,000,000 1,902,188 2.750 4.450 6/21/24 7/31/27 1,034 1,959,297 NC Aaa NA AA+u NC 7/31/27
US T 1607 9128282R0 2,000,000 1,885,781 2.250 4.260 7/24/24 8/15/27 1,049 1,931,719 NC Aaa NA AA+u NC 8/15/27
FHLB 1608 3130ATS40 2,000,000 2,031,865 4.375 3.820 8/13/24 9/10/27 1,075 2,046,972 NC Aaa AA+ AA+ NC 9/10/27
FNMA 1609 3135G05Y5 2,000,000 1,820,340 0.750 3.800 8/13/24 10/8/27 1,103 1,843,836 NC Aaa NA AAAu NC 10/8/27
FHLB 1610 3130AMHV7 2,000,000 1,885,600 1.500 3.433 9/25/24 11/18/27 1,144 1,876,373 NC Aaa NA AAAu NC 11/18/27
UST 1611 91282CBB6 2,000,000 1,829,908 0.625 3.400 9/25/25 12/31/27 1,187 1,824,688 NC Aaa NA AA+u NC 12/31/27
Subtotal 44 76,010,000 73,776,746 Avg. 74,971,086
LGIP LGIP NA 50,087,911 50,087,911 5.247 5.25% NA NA 14 50,087,911 NC NA NA NA NA NA
Grand Totals $126,097,911 $ 123,864,658 3.52% 369 $ 125,058,997
Page 3 of 8 2024 Q3 TSO spreadsheet
24
City of Yakima
Investment Portfolio by Issuer at 09/30/2024
FAMCA, 8,000,000, 6%
FHLB, 13,000,000, 10%
FNMA, 7,010,000, 6%
US T, 35,000,000, 28%
LGIP, 50,087,911, 40%
Diversifying by issuer reduces
FFCB, 13,000,000, 10% the credit risk the city is
subject to from any one
issuer as well as diversifies
market price fluctuations
which can vary by issuer.
Page 4 of 8 2024 Q3 TSO spreadsheet
25
Page 5 of 8
City of Yakima
Investment Portfolio Maturity Distribution at 09/30/2024
$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
$1,500,000
$1,000,000
$500,000 e e o 0
$0
t t t t t VI VIIII III V) U V) VD VD VD VD VD (0 (0 VD VD VD (fD (0 N N N N N N N N N N N N
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
o > () C (0 C bD Q if, > () C > C = Q if, > (J C > C Gp Q if, > U
U O N Ill"
f0 O- 7 - 7 U) U O f0 U/ O- f0 7 - 7 U) U O f0 U) ) ‹O- 7 - 7 U) U O N
o z o � g 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 Q3 TSO spreadsheet
26
City of Yakima
Investment Portfolio-Detail of Activity
September 30,2024
Beginning Additions and Calls and Ending
Agency Inv# Face Value Purchases Maturities Face Value
Farmer Mac
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 8,000,000 - - 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 - (1,000,000) 13,000,000
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 1608 2,000,000 2,000,000
FHLB 1610 2,000,000 2,000,000
FHLB Total 9,000,000 4,000,000 - 13,000,000
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 1609 2,000,000 2,000,000
FNMA Total 5,010,000 2,000,000 - 7,010,000
US Treasury
US Treasury 1546 1,000,000 - (1,000,000) -
US Treasury 1563 2,000,000 (2,000,000) -
US Treasury 1564 2,000,000 (2,000,000) -
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 1607 - 2,000,000 2,000,000
US Treasury 1611 - 2,000,000 2,000,000
US Treasury 36,000,000 4,000,000 (5,000,000) 35,000,000
Subtotal 72,010,000 10,000,000 (6,000,000) 76,010,000
Other Investments - - - -
LGIP(State Pool) LGIP 57,390,103 697,808 (8,000,000) 50,087,911
Other Investment Totals 57,390,103 697,808 (8,000,000) 50,087,911
Grand Totals $ 129,400,103 $ 10,697,808 $(14,000,000) $ 126,097,911
Page 6 of 8 2024 Q3 TSO spreadsheet
27
City of Yakima
Long Term Debt Schedule-by Project Group
September 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 516,192 261,626
8/1/2011 7/1/2034 L1200019 2012 Industrial Waste Anaerobic 587,173 344,820
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 14,650,258
Page 7 of 8 2024 Q3 TSO spreadsheet
28
City of Yakima
Interfund Borrowing
September 30,2024
Original Beginning Ending
Description Balance Balance Issued Retired Balance
Millsite 1,800,000.00 752,015.53 288,755.95 463,259.58
Nelson Dam 3,299,691.00 1,499,859.48 3,000,000.00 383,305.26 4,116,554.22
Total across all funds 5,099,691.00 2,251,875.01 3,000,000.00 672,061.21 4,579,813.80
Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow.
Page 8 of 8 2024 Q3 TSO spreadsheet
29
ieF ,
�'- r._ FINANCE
Committee Review of Investment Rationale
Date: July 23, 2024
Investment # 2024-1607 is a 7 Year US Treasury, face value $2,000,000, maturing
August 15, 2027, 2.25%coupon, purchased at a discount of 94.2890625 to yield 4.259.
This trade settles July 24, 2024 with Wedbush Securities, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At June 30th month-end, Key Bank checking account balance was $8.9 million
(target minimum is $3 Million), US Bank checking balance was $9.6 million and an
investment portfolio was $72.0 million (target is $72 million for Treasuries, Corporates and
Agencies). Current LGIP balance was $57.4 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 4.26. This investment is 117 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-dayyield 5.4261% www.secureaccess.wa.gov
_year Treasury 4.1500 % Treasury.gov _,
3-year Treasury 4.2600% Treasury.gov
Caliability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 28.9% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. The Bureau of Labor Statistics reported that median weekly real earnings rose in
the second quarter of this year by 0.8 percent, or 3.3 percent at an annual rate. This solid
increase continues to reflect an improvement in the purchasing power for the median
worker since before the pandemic and is good news for American households.
Investment Committee review:
Finance Direct r: Date 3/2`/ J
Irate
City Manager: Date 'Z ` c teVD-0'Di+
30
FINANCE
Committee Review of Investment Rationale
Date: August 12, 2024
Investment# 2024-1608 is a 5-year Federal Home Loan Bank, face value $2,000,000,
maturing September 10, 2027, 4.38% coupon, purchased at a Premium of 101.593241
to yield 3.82. This trade settles August 13, 2024 with Hilltop Securities, Inc., US Bank
Safekeeping, reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At July 31st, month-end, Key Bank checking account balance was $10.2 million,
US Bank checking balance was $10.7 million, and the investment portfolio was $72.0
million (Treasuries, Corporates and Agencies). Current LGIP balance was $51.6 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 3.82. This investment is 160 basis points under LGIP and 7 bases point
over the 5-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4237% www.secureaccess.wa.gov
5-year Treasury 3.7500 % _ Treasury.gov
3-year Treasury 3.8200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 8.6% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Growth, inflation and hiring are all cooling in the United States, which will most
likely define the second half of the year as the Federal Reserve gets ready to reduce its
restrictive policy rate. According to economists Joe Brusuelas, growth will ease to a more
sustainable 1.8%, unemployment will edge up to 4.2% and the Fed's preferred measure of
inflation will ease to 2.3%. It will all set the stage for the Fed to pivot away from its restrictive
monetary policy to one that encourages growth.
Investment Committee review:
Finance Direct : Date g//y,A,a
City Manage . Date V/ 114}
31
FINANCE
Committee Review of Investment Rationale
Date: August 12, 2024
Investment # 2024-1609 is a 7-year Fannie Mae, face value $2,000,000, maturing
October 08, 2027, .75% coupon, purchased at a Discount of 91.017 to yield 3.80. This
trade settles August 13, 2024 with Time Value Investments, Inc., US Bank Safekeeping,
reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At July 31st, month-end, Key Bank checking account balance was $10.2 million,
US Bank checking balance was $10.7 million, and the investment portfolio was $72.0
million (Treasuries, Corporates and Agencies). Current LGIP balance was $51.6 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 3.80. This investment is 162 basis points under LGIP and 5 bases point
over the 5-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.4237% www.secureaccess.wa.gov
5-year Treasury 3.7500 % Treasury.gov
3-year Treasury 3.8200% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 5.5% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. Growth, inflation and hiring are all cooling in the United States, which will most
likely define the second half of the year as the Federal Reserve gets ready to reduce its
restrictive policy rate. According to economists Joe Brusuelas, growth will ease to a more
sustainable 1.8%, unemployment will edge up to 4.2% and the Fed's preferred measure of
inflation will ease to 2.3%. It will all set the stage for the Fed to pivot away from its restrictive
monetary policy to one that encourages growth.
Investment Comm' e review:
Finance Dire tor: Date 17//4/1/4LIA
City Manag . rL Date 611.tJ
32
' :L4r)14
FINANCE
Committee Review of Investment Rationale
Date: September 24, 2024
Investment# 2024-1610 is a 6-year Federal Home Loan Bank, face value $2,000,000,
maturing November 18, 2027, 1.50% coupon, purchased at a Discount of 94.28 to
yield 3.4325. This trade settles September 25, 2024, with Hilltop Securities, Inc., US Bank
Safekeeping, reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At August 31st, month-end, Key Bank checking account balance was $12.5
million, US Bank checking balance was $6.1 million, and the investment portfolio was $74.0
million (Treasuries, Corporates and Agencies). Current LGIP balance was $49.9 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 3.43. This investment is 191 basis points under LGIP and 8 bases point
under the 5-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-day yield 5.3452% www.secureaccess.waaov
5-year Treasury 3.5100% _ Treasury.gov
3-year Treasury 3.4700% _ Treasur rygov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 10.2% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. The Federal Reserve made its biggest cut to the benchmark rate in 16 years on
Wednesday, reducing the benchmark rate by 50 basis points. The first rate cut in 4 years
brings the benchmark rate to a range of 4.75% to 5%. A decreasing interest-rate
environment will, eventually, help change the landscape for stocks and, hopefully, real
estate. Fed officials have predicted that the benchmark rate will continue to be lowered
before the end of 2024. Some expect the federal funds target rate to fall to 4.5% by the end
of 2024, 3.5% by the end of 2025, and 3.0% by June 2026.
Investment Committee review:
QFinance Director: `r • Date T i 1 ' 1-'"(
City Managk �L-�r Date I a 4 I
33
qAt '4)
•
FINANCE_
Committee Review of Investment Rationale
Date: September 24, 2024
Investment # 2024-1611 is a 7-year US Treasury, face value $2,000,000, maturing
December 31, 2027, 0.62% coupon, purchased at a Discount of 91.4954 to yield 3.40.
This trade settles September 25, 2024, with Time Value Investments, Inc., US Bank
Safekeeping, reducing our elevated LGIP position caused by maturities called during 2024.
Liquidity: At August 31st, month-end, Key Bank checking account balance was $12.5
million, US Bank checking balance was $6.1 million, and the investment portfolio was $74.0
million (Treasuries, Corporates and Agencies). Current LGIP balance was $49.9 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 3.40. This investment is 194 basis points under LGIP and 11 bases point
under the 5-year treasury, seeking to protect yield in an uncertain environment.
Comparable yields are:
LGIP current 30-dayyield 5.3452% www.secureaccess.wa.gov
5-year Treasury 3.5100% Treasury.gov _
3-year Treasury 1 3.4700% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 28.9% of total portfolio.
This investment adds a maturity date not previously covered in the City's laddered portfolio.
Outlook. The Federal Reserve made its biggest cut to the benchmark rate in 16 years on
Wednesday, reducing the benchmark rate by 50 basis points. The first rate cut in 4 years
brings the benchmark rate to a range of 4.75% to 5%. A decreasing interest-rate
environment will, eventually, help change the landscape for stocks and, hopefully, real
estate. Fed officials have predicted that the benchmark rate will continue to be lowered
before the end of 2024. Some expect the federal funds target rate to fall to 4.5% by the end
of 2024, 3.5% by the end of 2025, and 3.0% by June 2026.
Investment Committee review:
Finance Director: -• Date
City Manager Date ���-14) 1-1'
34