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HomeMy WebLinkAbout10/15/2019 06D 3rd Quarter 2019 Treasury Report 't..an,gtntj ka d E$A aY 34, BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.D. For Meeting of: October 15, 2019 ITEM TITLE: 2019 3rd Quarter Treasury Report SUBMITTED BY: Steve Groom, Director of Finance and Budget SUMMARY EXPLANATION: The Treasury Report for the third quarter of 2019 is attached and consists of the following: 1. Third Quarter Treasurer's Report • Cash and Investments • Long term Debt • I nterfund Borrowings 2. September Investment Transactions reviewed by Investment Committee ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR ///9 Interim City Manager SUBMITTAL. t t - - STAFF RECOMMENDATION: Review only. Submitted for routine transparency and accountability. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 2019 3rd darter Treasu e rt 1 1212019 r Me 2 t \ +`\ 71 re'; 1:a ri a5,?new+.ds FINANCE Date: October 2, 2019 WFTA To: Mayor and City Council CERTincAr of caLENGE Cynthia Martinez, Interim City Manager coo YAMNIA From: Steve Groom, Finance Director r000 Jennifer Morris, Financial Services Officer .1 Re: 2019 — 3rd Quarter Treasury Report Updates to the City's investment policy were approved by City Council on March 5, 2019; the policy received a Certification of Excellence from the Washington Public Treasurer's Association on April 10, 2019. Total Cash and Investments at Quarter-end total $94.3 million: $18.2 million in depository banks, $20.7 million in the State Pool, and $55.5 million invested. SSCYa Pq} O,BK OO( ssca+.•_c,a )400O:O01 53K?,t10 O!XJ ixf,:R'.ln;J 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 no investments was called, the following matured: • $3,000,000 FFCB (1 .25% yield) matured 8/19/2019 • $2,119,000 FICO Strip (1 .46% yield) matured 9/26/2019 Purchases: • 1524 $1 ,000,000 FHLMC (2.15% yield) to mature 11/14/2022 • 1525 $1 ,000,000 FHLMC (2.25% yield) to mature 8/12/2024 • 1526 $1 ,000,000 US Treasury (2.00% yield) to mature 9/30/2020 • 1527 $1 ,000,000 FFCB (1 .625% yield) to mature 9/17/2021 3 FINANCE 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 September 30, 2019, the fixed income market is experiencing continued uncertainty, evidenced by a yield curve that is still inverted, meaning 1-year rates are higher than 3-and 5-year rates;the difference between the 1-year Treasury at 1.73%and the 5-year Treasury at 1.51% is 26 basis points. The 30-day yield of the State Pool was at 2.217%. Economic Outlook. The Federal Reserve continues to signal a high probability of lower rates, lowering projections for future rates. Unemployment, nationally, remains low and the economy continues to appear strong so while recession continues to be a cyclical statistical probability the concerns do not appear to be drastic. Strategy Notes. The City of Yakima's Actual % Policy % investments are not typically actively traded, LGIP 20,690,499 27% 100% meaning that no attempt to "buy low and sell Treasuries 1,000,000 1% 100% high" or "time the market" is made. Agencies 49,483,000 65% 100% Investments purchased with the intent of Corporates 5,000,000 7% 15% providing investment income are intended to 76,173,499 100% be held to maturity, relying on following a prudent course of action for income rather than predicting market direction. No securities were considered, due to prevailing circumstances, to be sold prior to maturity during the last quarter. 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. All debt payments continue as scheduled. 2 City of Yakima Cash and Investment Summary September 30, 2019 Current Prior Quarter Prior Year Description 9/30/2019 6/30/2019 9/30/2018 Cash Balances on Hand in Banks $ 18,154,002 $ 12,346,008 $ 14,412,536 Local Government Investment Pool (LGIP) 20,690,499 22,571 ,372 17,600,116 Investment Portfolio 55,483,000 56,602,000 52,580,205 Total Investments 76,173,499 79,173,372 70,180,321 Total Cash and Investments $ 94,327,502 $ 91 ,519,380 $ 84,592,857 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 6/30/2019 & Deposits Reinvested & Withdrawals 9/30/2019 Local Government Investment Pool (LGIP) $ 22,571 ,372 $ 2,502,188 $ 118,660 $ (4,501 ,721) $ 20,690,499 Investment Portfolio 56,602,000 4,000,000 - (5,119,000) 55,483,000 Other Investments - - - - - Total Investments $ 79,173,372 $ 6,502,188 $ 118,660 $ (9,620,721) $ 76,173,499 Page 1 of 8 2019 Q3 TSO spreadsheet City of Yakima Distribution of Cash and Investments as of 9J30/2019 ................. Depository Banks, ............... ............................................. ........................ 18 154 002 19% f Investment Portfolio Local Government 0 Investment Pool 55 483 000 59 0 I 0 $ 20 690 499 221 Page2of8 City of Yakima Investment Portfolio - Inventory by Agency September 30, 2019 Expected Days to Call Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch RFCSP 1503 76116FAA5 3,139,000 3,037,265 1.990 1.990 02/14/18 10/15/19 198 3,136,511 NC Aaa AA+ AAA RFCSP 1505 76116FAA5 2,160,000 2,099,535 2.479 2.479 08/17/18 10/15/19 198 2,158,287 NC Aaa AA+ AAA FHLB 1506 3130AA3R7 1,000,000 988,149 1.375 2.680 12/10/18 11/15/19 229 999,344 Amer Aaa AA+ AA+ FHLB 1511 3130ADMS8 1,000,000 996,400 2.150 2.545 3/11/19 2/14/20 320 1,000,072 Qtrly Aaa AA+ AA+ FFCB 1520 3133EKJS6 1,000,000 1,000,000 2.400 2.400 4/29/19 4/29/20 395 1,003,328 NC Aaa AA+ AAA FNMA 1488 3136G3QK4 3,000,000 2,999,970 1.500 1.500 6/3/16 5/22/20 418 2,993,256 Qtrly Aaa AA+ AAA FNMA 1494 3136G4GK3 2,010,000 1,995,172 1.350 1.560 12/14/16 7/28/20 485 2,004,077 Qtrly Aaa AA+ AAA US T 1526 912828VZ0 1,000,000 1,001,563 2.000 1.847 09/16/19 9/30/20 549 1,001,836 NC Aaa AA+ NC RFCSP 1493 76116FAE7 3,203,000 2,999,859 1.716 1.716 12/14/16 10/15/20 564 3,141,906 NC Aaa AA+ AAA RFCSP 1502 76116FAE7 2,122,000 1,999,174 2.250 2.250 02/14/18 10/15/20 564 2,081,525 NC Aaa AA+ AAA RFCSP 1495 76116FAG2 2,137,000 1,995,637 1.821 1.821 04/06/17 1/15/21 656 2,085,107 NC Aaa AA+ AAA RFCSP 1499 76116FAG2 1,000,000 945,156 1.730 1.730 10/06/17 1/15/21 656 975,717 NC Aaa AA+ AAA RFCSP 1500 76116FAG2 2,667,000 2,499,062 2.200 2.200 01/25/18 1/15/21 656 2,602,237 NC Aaa AA+ AAA FFCB 1496 3133EGRN7 2,015,000 1,994,713 1.470 1.740 4/6/17 2/17/21 689 2,006,412 1C-NC Aaa AA+ AAA FFCB 1518 3133EKGY6 1,000,000 1,000,000 2.375 2.375 4/15/19 4/15/21 746 1,008,655 NC Aaa AA+ AAA BNY 1521 06406FAB9 1,000,000 989,800 2.050 2.574 4/30/19 5/3/21 764 1,000,216 NC Al A AA- FNMA 1490 3136G3SJ5 2,000,000 1,995,048 1.500 1.552 6/30/16 6/30/21 822 1,993,456 Qtrly Aaa AA+ AAA FNMA 1501 3136G4RD7 1,000,000 997,351 2.300 2.380 2/14/18 7/30/21 852 1,000,426 Qtrly Aaa AA+ AAA FFCB 1527 3133EKP67 1,000,000 996,900 1.625 1.780 9/17/19 9/17/21 901 997,471 NC Aaa AA+ AAA FHLB 1492 3130A9Z61 2,030,000 1,994,020 1.500 1.880 12/14/16 11/9/21 954 2,017,110 Amer Aaa AA+ AA+ FNMA 1491 3136G3SW6 2,000,000 1,997,896 1.500 1.520 6/30/16 12/30/21 1,005 1,987,224 Qtrly Aaa AA+ AAA USB 1515 91159HHP8 1,000,000 997,300 2.625 2.723 3/18/19 1/24/22 1,030 1,013,454 1X Al A+ AA- MSFT 1512 594918BW3 1,000,000 996,920 2.400 2.575 3/15/19 2/6/22 1,043 1,014,462 NC Aaa AAA AA+ FFCB 1498 3133EHYQ0 3,000,000 2,993,640 1.950 2.000 10/6/17 3/14/22 1,079 3,000,045 Amer Aaa AA+ AAA FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 1,142 1,015,552 NC Aaa AA+ AAA FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 1,158 1,015,717 NC Aaa AA+ AAA FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 1,258 1,041,128 Amer Aaa AA+ AA+ FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 1,297 1,021,508 NC Aaa AA+ AAA FHLMC 1524 3134GT2C6 1,000,000 1,000,000 2.150 2.150 8/14/19 11/14/22 1,324 993,017 Qtrly Aaa AA+ AAA FHLMC 1510 3134GS6F7 1,000,000 1,000,000 2.720 2.720 3/27/19 3/27/23 1,457 1,003,907 lx Aaa AA+ AAA FHLMC 1517 3134GTGM9 1,000,000 1,000,000 2.550 2.550 4/10/19 4/10/23 1,471 1,004,309 lx Aaa AA+ AAA AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 1,494 1,018,666 NC AA1 AA+ - WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 1,548 1,053,065 NC Aa2 AA AA FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 1,633 1,050,838 NC Aaa AA+ AAA FHLB 1507 3130AFK87 1,000,000 1,003,225 3.100 2.933 12/28/18 12/28/23 1,733 1,014,156 Amer Aaa AA+ AA+ FHLMC 1514 3134GS6W0 1,000,000 1,000,000 2.700 2.700 3/27/19 3/27/24 1,823 1,003,865 1X Aaa AA+ AAA FHLMC 1525 3134GTZ63 1,000,000 1,000,000 2.250 2.250 8/12/19 8/12/24 1,961 996,335 Qtrly Aaa AA+ AAA Subtotal 37 55,483,000 54,552,224 Avg. 2.09% 55,454,196 LGIP LGIP NA 20,690,499 20,690,499 2.505 2.505 NA NA 1 20,690,499 NC Grand Totals $76,173,499 $75,242,723 2.18% 585 $76,144,696 age o spreaa ee Yakima City of Investment Portfolio by issuer at 9/30J2:C:AA1°T'A°91.1e0110/0, FHLB, 6,030000, 8%FICO, - , 0% FHLMC, 5,000 7% FAM ,000,000, 3% FNMA, 10 010 000, 13% ,000, 2% °:kiiiiiiii kit 00,000, 1%BNV, 000,000, 1°t° MSFT, 1,0130000, B USB, 1,000,000, 1/° WMT, 1,000,000, 1/° FFCB 10 015 000 13 ° 111111111111111111111111111110,1 11111,11111p- 11171112, Flitax- LGIP, 20,690,499, 27% RFCSP, 16,428,000, 22°t° Page 4 of 8 2019 Q3 TSO spreadsheet Page 5 of 8 City of Yakima Investment Portfolio Maturity Distribution at 9/30/2019 $6,000,000 Ss,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $o �1c' 19 ,ti0 'l° Jc 19 °�"19 �D° `'t° ',y `tit c 1 ti1 tit 11 :L :tiv C) 'L' ;L' ,1) ¢p1'h PQ;1) 'L� ;1, 'L� ;1, 'L° 'YP O CPC ,F'� 1S? \ P p 02 c� PS 1� P°% O Oe 4� PQa 1� P4� O� O F � 1�r p�q O� O Fz� pS� pdt Page 5 of 8 2019 Q3 TSO spreadsheet 9 City of Yakima Investment Portfolio-Detail of Activity September 30, 2019 Beginning Additions and Calls and Ending Agency Inv# Face Value Purchases Maturities Face Value Farmer Mac FAMCA 1508 1,000,000 - - 1,000,000 FAMCA 1522 1,000,000 - - 1,000,000 FAMCA Total 2,000,000 - - 2,000,000 Federal Farm Credit Bureau FFCB 1489 3,000,000 - (3,000,000) - FFCB 1496 2,015,000 - - 2,015,000 FFCB 1498 3,000,000 - - 3,000,000 FFCB 1518 1,000,000 - - 1,000,000 FFCB 1519 1,000,000 - - 1,000,000 FFCB 1520 1,000,000 - - 1,000,000 FFCB 1523 1,000,000 - - 1,000,000 FFCB 1527 - 1,000,000 - 1,000,000 FFCB Total 12,015,000 1,000,000 (3,000,000) 10,015,000 Federal Home Loan Bank FHLB 1492 2,030,000 - - 2,030,000 FHLB 1506 1,000,000 - - 1,000,000 FHLB 1507 1,000,000 - - 1,000,000 FHLB 1509 1,000,000 - - 1,000,000 FHLB 1511 1,000,000 - - 1,000,000 FHLB Total 6,030,000 - - 6,030,000 Resolution Funding Corporation RFCSP 1493 3,203,000 - - 3,203,000 RFCSP 1495 2,137,000 - - 2,137,000 RFCSP 1499 1,000,000 - - 1,000,000 RFCSP 1500 2,667,000 - - 2,667,000 RFCSP 1502 2,122,000 - - 2,122,000 RFCSP 1503 3,139,000 - - 3,139,000 RFCSP 1505 2,160,000 - - 2,160,000 RFCSP Total 16,428,000 - - 16,428,000 Federal Home Loan Mortgage Corporation FHLMC 1510 1,000,000 - - 1,000,000 FHLMC 1514 1,000,000 - - 1,000,000 FHLMC 1517 1,000,000 - 1,000,000 FHLMC 1524 - 1,000,000 1,000,000 FHLMC 1525 - 1,000,000 1,000,000 FHLMC Total 3,000,000 2,000,000 - 5,000,000 Federal National Management Association FNMA 1488 3,000,000 - - 3,000,000 FNMA 1490 2,000,000 - - 2,000,000 FNMA 1491 2,000,000 - - 2,000,000 FNMA 1494 2,010,000 - - 2,010,000 FNMA 1501 1,000,000 - - 1,000,000 FNMA Total 10,010,000 - - 10,010,000 US Treasury US Treasury 1526 - 1,000,000 - 1,000,000 US Treasury - 1,000,000 - 1,000,000 Financing Corporation FICO 1485 2,119,000 - (2,119,000) - FICO Total 2,119,000 - (2,119,000) - Corporate Notes AAPL 1516 1,000,000 - - 1,000,000 MSFT 1512 1,000,000 - - 1,000,000 WMT 1513 1,000,000 - 1,000,000 USB 1514 1,000,000 - 1,000,000 BNY 1521 1,000,000 - 1,000,000 Corporate Total 5,000,000 - - 5,000,000 Subtotal 56,602,000 4,000,000 (5,119,000) 55,483,000 Other Investments - - - - LGIP(State Pool) LGIP 22,571,372 2,620,848 (4,501,721) 20,690,499 Other Investment Totals 22,571,372 2,620,848 (4,501,721) 20,690,499 'Grand Totals $ 79,173,372 $ 6,620,848 $ (9,620,721) $ 76,173,499 Page 6 of 8 2019 03 ISO spreadsheet City of Yakima Long Tenn Debt Schedule-by Project Group September 30,2019 IIDate Issued Maturity Description Note Amount of Issue Current Balance Payments General Obligation Bonds 9/7/2004 11/1/2019 PFD Convention Center II Refunded 1996 issue $ 4,175,000 $ 335,000 $ - 5/8/2009 5/1/2026 PFD Convention Center III Partial refunding of 2002 issue 4,910,000 2,770,000 - 8/28/2009 12/1/2018 PFD Capitol Theatre Tax exempt portion 2,055,000 - - 8/28/2009 12/1/2032 PFD Capitol Theatre Build America Bonds(Taxable) 4,980,000 4,980,000 - 6/19/2003 12/1/2023 Sundome Expansion Deferred Interest-Maturity$25M 1,430,528 317,934 - 8/28/2008 12/1/2021 Fire Apparatus Ladder Truck 760,000 173,521 - 5/8/2009 5/1/2022 Fire Station Remodel Facility 815,000 205,000 0 8/28/2008 12/1/2019 Infrastructure Projects Ped crossing,street,infrastructure 2,190,000 - - 5/8/2009 5/1/2022 Downtown Futures Renovate downtown improvements 1,490,000 375,000 - 6/20/2013 6/20/2028 Street Project Demonstration(Refunded) Various City street improvements 3,500,000 3,206,304 - 6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 7,345,000 - 6/19/2014 12/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,395,000 - 12/22/2015 12/1/2035 Soccer Complex City portion of SOZO Sports Complex 5,000,000 - - 9/24/2018 12/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 4,348,996 - 9/24/2018 7/1/2035 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,996,271 - Subtotal General Obligation Bonds $ 58,612,028 $ 33,448,027 $ - Certificate of Participation-State of Washington 8/22/2013 6/1/2019 Police Vehicles 74 Take-home vehicles $ 4,173,190 $ (0) $ - 8/22/2013 6/1/2019 Fire Air Packs 70 Air Packs 459,602 (0) - 6/1/2011 12/1/2020 Fire Apparatus Two trucks purchased 576,847 131,948 - 3/19/2013 7/1/2023 Fire Apparatus One truck 310,414 142,196 - 9/28/2019 6/1/2027 Energy Project LED Street Lighting 921,863 784,893 - 9/28/2019 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 1,079,856 - Subtotal Certificates of Participation $ 7,709,970 $ 2,138,893 $Revenue Bonds 5/31/2012 11/1/2023 Wastewater Refunded 2003$10,155,000 issue $ 9,400,000 $ 5,185,000 $ - 6/5/2008 11/1/2027 Wastewater Wastewater system 5,440,000 3,070,000 - 6/5/2008 11/1/2018 Water Refunded 1998 issue 1,883,951 220,000 - 9/4/2004 9/1/2034 Irrigation Irrigation System 5,215,000 3,375,000 155,000 Subtotal Revenue Bonds $ 21,938,951 $ 11,850,000 $ 155,000 Intergovernmental Loans 8/14/2009 7/1/2028 PC-08-951-052 2009 Railroad Grade Separation $ 3,000,000 $ 1,485,902 $ - 5/6/2010 6/1/2034 41000030-0 2010 Railroad Grade Separation 1,149,841 1,019,991 9/30/2015 6/1/2023 '15 Yak Co SIED-21st Ave/Airport 2015 Yakima Co SIED Loan-21st Ave/Airport 307,000 218,849 6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 757,405 11/21/2017 6/1/2024 '17 Yak Co SIED-YV Brewing Project 2017 Yakima Co SIED Loan-YV Brewing Project 61,580 61,580 - 7/19/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 500,000 - 6/1/2001 7/1/2021 PW-01-691-071 2001 Fruitavale Neighborhood Sewer 1,466,250 155,250 9/1/2003 7/1/2023 PW-03-691-027 2003 Naches WTP Improvements 2,694,500 538,900 6/27/2005 10/1/2025 SRF-04-65104-037 2005 Naches River WTP Filter Rehab 966,772 329,509 - 12/30/2005 7/1/2025 PW-05-691-064 2005 River Road Sewer 2,307,000 745,475 4/30/2007 7/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 971,111 4/15/2009 7/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 1,090,339 10/10/2011 3/31/2033 41100008 2011 Energy Efficiency 503,558 400,623 11,771 8/1/2011 7/1/2034 41200019 2012 Industrial Waste Anaerobic 590,350 499,590 13,174 6/1/2012 6/1/2032 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 3,228,950 10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,464,115 8/5/2013 7/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 3,421,053 - 12/12/2013 10/1/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,811,840 - Subtotal Intergovernmental Loans $ 34,518,851 $ 19,700,482 $ 24,946 (Grand Total $ 122,779,800 $ 67,137,402 $ 179,946 Page 7 of 8 2019 03 ISO spreadsheet City of Yakima Interfund Borrowing September 30,2019 Original Beginning Ending Description Balance Balance Issued Retired Balance Local Improvement District Bonds/Notes $ 1,432,509 $ 41,605 $ - $ 4,317 $ 37,288 Equipment Rental Reserve Fund 153- Public Safety Communications 450,000 300,000 - - 300,000 Equipment Rental Reserve Fund 332- Fire Capital 640,000 - - - - General Fund Fund 323- Millsite Project - 500,000 - - 500,000 REET Fund 151 - Public Safety Communications- Interfund Loan The Public Safety Communications Fund borrowed from the Equipment Replacement and Reserve Fund to provide working capital while they recover from the excess cash outflow caused by the move to the new Communications Center last year.In 2018 a payment of $150,000 principal payment was made leaving a balance of$300.000. A$150,000 payment is scheduled for 2019. Fund 332- Fire Capital The Fire Capital fund borrowed$640,000 cash at the end of 2016 from Equipment Rental to finance the down payment on two fire apparatus that were under construction.The Fire Department took delivery of the apparatus and final payment was made in August 2017. The first loan was refinanced through the General Fund in January and a second loan of$460,000 was added in August,then extinguished in December 2018 by the General Fund. Fund 323- Millsite(LIFT) The Millsite project borrowed$500,000 from REET until such time as official financing can be secured.At that time the loan from REET will be repaid.A Statement of Official Intent for the reimbursement has been executed to meet bond requirements. Page 8 of 8 2019 Q3 TSO spreadsheet 12 rVim i` I: x FINANCE Committee Review of Investment Rationale Date: August 9, 2019 Investment # 2019-1524 is a 3-year Federal Home Loan Mortgage Corp (FHLMC) Agency new issue, face value $1,000,000, maturing November 14, 2022, 2.150% coupon purchased at 100.000 to yield 2.150%. This trade settles August 14, 2019 with Great Pacific Securities, US Bank Safekeeping. This investment is the first of three to replace a $3,000,000 1.25% FFCB medium term note maturing August 19, 2019. Liquidity: At July 31 month-end, Key Bank checking account balance was $9,551,792, target is $3 Million. US Bank checking balance was $2,539,448. Current invested yield segment of portfolio is now $56,602,000; target is $60,000,000 for Treasuries, Corporates and Agencies. Current LGIP balance is $20,316,288; target minimum is $3,000,000. Safety: This purchase is a debt issue of FHLMC, one of the Federal Agencies that carries an implicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 2.150%. This investment is 23 basis points under LGIP, seeking to protect yield in an eroding yield / uncertain environment. Comparable yields are: LGIP current 30-day yield 2.3883% www.secureaccess.wa.gov 5-year Treasury 1.5400% www.treasury.gov Callability. This is a quarterly-callable investment. Diversification. This purchase brings this issuer to 4.0% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio, Outlook. The yield curve is currently inverted, the 1-year Treasury at 1.79 and the 5- year at 1.54. The Federal Reserve Bank just executed a 1/4-point rate cut. With $10 million in our portfolio maturing in August, September and October, we are filling maturity gaps in the ladder as well as methodically purchasing 5-year maturities. Investment Committee review: Finance Director: . __ ;r _ :r.:..: Date , City Manag : 1'' Date 1 / 9 13 +s N .1. 1 t de/di7 xx . j ....-.t.�.2 FINANCE City of Yakima Investment Portfolio Maturity Dates and Amounts SS,000 000 S4 000,000 ss,nnn,snnn -- 52,080,000 ,a _ _ , 9, „ _ .., v . k ';+ x Fi ry ni ti li v •,1 i., w, ,a t'v h ,... ray _ ,, - r .-! ..: ti - 'D .., w. < { — _ .+, a.. — < w _ v- 4 <f. City of Yakima F6% Diversification by issuer HIMC J +€ ,000 J FICO Strip+ $2,119,000,3 I"...,..:';':.'::' ' FAI CA, $2,000,000,3 �:ax::x v. r. ' "''" Apple ,1'�i .,...� :.: ,�:� BNY, $Loon, e,1°> USBancorp, $1,000,000, ....... ........ ... rfca,$ 01S, z ::s::::' ":':'': ,::.,.._ 'nr , '''' 1 aImart, $1,000,000J 1% ....." a x. ..N.�':,xry3ary._ryi; zx'xWM��, x .,.�'e'+a'ryAi,:y'x5.ry'.a•,. .. ... . Microsoft, 1k000J 00 F 1% % x i h 5 q ' �a> M b, x , 44 , ' 4 44 i w� a 4. ryryi.4a��AryiiC:;F'xrya:�',,x1,3�?x!�;�x .. .. y 'max 1 xFx+xx' 4 .. 8/9/2019 p.2 of 4 2019-1524 Invest Rationale FHLMC 08-2024 14 ,,a FINANCE Committee Review of Investment Rationale Date: August 9, 2019 Investment # 2019-1525 is a 5-year Federal Home Loan Mortgage Corp (FHLMC) Agency new issue, face value $1,000,000, maturing August 12, 2024, 2.250% coupon purchased at 100.000 to yield 2.250%. This trade settles August 12, 2019 with Great Pacific Securities, US Bank Safekeeping. This investment is the second of three to replace a $3,000,000 1.25% FFCB medium term note maturing August 19, 2019. Liquidity: At July 31 month-end, Key Bank checking account balance was $9,551,792, target is $3 Million. US Bank checking balance was $2,539,448. Current invested yield segment of portfolio is now $56,602,000; target is $60,000,000 for Treasuries, Corporates and Agencies. Current LGIP balance is $20,316,288; target minimum is $3,000,000. Safety: This purchase is a debt issue of FHLMC, one of the Federal Agencies that carries an implicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 2.250%. This investment is 13 basis points under LGIP, seeking to protect yield in an eroding yield / uncertain environment. Comparable yields are: LGIP current 30-day yield 2.3883% www.secureaccess.wa.g©v 5-year Treasury 1.5400% www.treasury.gov Callability. This is a quarterly-callable investment. Diversification. This purchase brings this issuer to 6.6% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio. Outlook. The yield curve is currently inverted, the 1-year Treasury at 1.79 and the 5- year at 1.54. The Federal Reserve Bank just executed a '/4-point rate cut. With $10 million in our portfolio maturing in August, September and October, we are filling maturity gaps in the ladder as well as methodically purchasing 5-year maturities. Investment Committee review: Finance Director: Date City Manage . Date o91� 15 FINANCE City of Yakima Investment Por'tfol a Maturity Dates and Amounts $esec00,0u8 ss,a00,0000 $4 000,000 $3,008,000 SZ000 000 — St„uuu,oucc mt � a P j t'd i r*A a _ ^ jti +", t'{ i`x h ry {' 4• :a r"`„ < rS 5w1 •�} w 4 .� ^? ,..:J tea' d, u .„, L G — k.. w City of Yakima FHINIC x $5,000, 3 x 7 DiversifIcatioI by issuer vq� Aa+i�a FFII.B xs :. 8,030, } " FICO Strip r S2,119,000 r 3% �'.•:4 �+tt#x ''::,;:^':. FANICA r $2,000,000 3% S Y {.+{ 000 000 % 4N1 x w�S.Atl4.farrUtJV x�7{7 t188ancerp, 51,000,000, ...:. .;... 4 i{qx„ 1,,t1.tq}.•�S$.'�'i�,:'jF�'a;:�.:�ry�,'„Mx',A astir:.44,4 uq;.a,..x,.N, ...M.x��'^.d,`$ik, +i�''G«""')a•AS A;M`a�rya a .H� ��1,, .. � 1 44 4 q ^.A,uM^i,u.aa...,a 8/9/2019 p.2 of 4 2019-1525 Invest Rationale FHLMC 08-2024 16 1` FINANCE Committee Review of Investment Rationale Date: September 14, 2019 Investment # 2019-1526 is a 1-year Treasury (T), face value $1,000,000, maturing September 30, 2020, 2.000% coupon purchased at 100.15625.000 to yield 1.847%. This trade settles September 16, 2019 with Great Pacific Securities, US Bank Safekeeping. This investment is the third of three to replace a $3,000,000 1.25% FFCB medium term note that matured August 19, 2019. Liquidity: At August 31 month-end, Key Bank checking account balance was $10,766,264, target is $3 Million. US Bank checking balance was $5,992,198. Current invested yield segment of portfolio is now $56,602,000; target is $60,000,000 for Treasuries, Corporates and Agencies. Current LGIP balance is $20,650,992; target minimum is $3,000,000. Safety: This purchase is a debt issue of the US Treasury, that carries an explicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 1.847%. This investment is 37 basis points under LGIP, seeking to protect yield in an eroding yield / uncertain environment. Comparable yields are: LGIP current 30-day yield 2.2179% www.secureaccess.wa.gQv 1-year Agency - FHLB 1.7500% broker quote Callability. This is a non-callable investment. Diversification. This purchase is the first Treasury holding, this issuer is 1.3% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio. Outlook. The yield curve is currently inverted, the 1-year Treasury at 1.82, the 2-year at and the 5-year at 1.54. The Federal Reserve Bank just executed a 1/4-point rate cut. With $10 million in our portfolio maturing in August, September and October, we are filling maturity gaps in the ladder as well as methodically purchasing 5-year maturities. Investment Committee review: Finance Director: Date City Manager: Date 1 f 17 N.t 17%* „ 17, 1,73 FINANCE City of Yakima Investment Portfoko IVIatunty Dates and Amounts $6000 00 Ss,OC.0,000 S4.000,030 S 000 000 S2,000,000 7;. $1,002 000 I I r.?„ 1 ill/ 11117. II Eli lilt H sr, c, ;Z: ,7 ;7, •:". :2. 7, 72. 7,2 8 t. a Diversification by Issuer r+its $6,030,060 FHLMC , S5,600,000 ,7% FNMA. $16,010,000 13% tICO Str1P $2,11%000 FAIV1CA„ $2,0000000 3% Treas $1,060,000 ,2% Apple, $1.000,000 ,1% _ ; = ENY $1000 000 1% USBancorp, $1,000,000 ,1% Walmart $1,000,000 .1% FFCS 59.015,000 ,12% 4 „ 4 ,44 444.. 41 44 It {t,t4t44 t 4 44 4 t {44'4: '444 44 4 it't 4 44.4 ,{{ {41 4tt 9/13/2019 p.2 of 4 2019-1526 Invest Rationale Treas 09-2020 18 • • .g5 z�. FINANCE Committee Review of Investment Rationale Date: September 14, 2019 Investment # 2019-1527 is a 2-year Federal Farm Credit Bank (FFCB), face value $1,000,000, maturing September 17, 2021, 1.625% coupon purchased at 99.6900 to yield 1.78%. This trade settles September 17, 2019 with Great Pacific Securities, US Bank Safekeeping. This investment is the first of two to replace a $2, 119,000 1.46% FICO Strip that matures September 26, 2019. Liquidity: At August 31 month-end, Key Bank checking account balance was $10,766,264, target is $3 Million, US Bank checking balance was $5,992,198. Current invested yield segment of portfolio is now $56,602,000; target is $60,000,000 for Treasuries, Corporates and Agencies. Current LGIP balance is $20,650,992; target minimum is $3,000,000, Safety: This purchase is a debt issue of one of the Federal Agencies that carries an implicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 1.78%. This investment is 44 basis points under LGIP, seeking to protect yield in an eroding yield / uncertain environment. Comparable yields are: LGIP current 30-day yield 2.2179% www.secureaccess.wa.g©v 1-year Agency - FHLB 1 .7500% broker quote Callability. This is a non-callable investment. Diversification. This purchase brings this issuer to 13.5% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio. Outlook. The yield curve is currently inverted, the 1-year Treasury at 1.82, the 2-year at and the 5-year at 1.54. The Federal Reserve Bank executed a 1/4-point rate cut July 31. With $10 million in our portfolio maturing in August, September and October, we are filling maturity gaps in the ladder as well as methodically purchasing 5-year maturities. Investment Committee review: Finance Director: Date City Manager: Date q 1ii.R`/ 19 +r wH axu t;tx 'k,•,• r� FINANCE City of Yakima Investment Portfolio Maturity Dates and Amounts 56,000,000 $4.000.000 x 2r€a0•0,00„3 I iih , iJ1I11 III 1111 I I I City of Yakima Diversification by Issuer FHLMC, $5,00OOOO,7% FHLB, FNMA,: $6,030.000 FAMCA, $2,000,000,3% , Allinglailik1490 rrBaS, $1,E� (1,flt7�,29# r' Apple, $1,000,000,1% BNY, $1,000,000,1% US Bancorp, 91,000,000, wY r;..... ,r. Walmart, $1.,000, ,196 Microsoft, 1% $ a • 9/14/2019 p.2 of 4 2019-1527 Invest Rationale FFCB 09-2021