HomeMy WebLinkAbout08/21/2012 04D 2nd Quarter 2012 Treasury Report BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT `
Item No.
For Meeting of: August 21, 2012
ITEM TITLE: 2nd Quarter 2012 Treasury Report
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
CONTACT Cindy Epperson, Director of Finance and Budget, 576 -
PERSON/TELEPHONE: 6771
Tara Lewis, Financial Services Manager, 576 - 6639
SUMMARY EXPLANATION:
The Treasury Report for the second quarter of 2012 is attached and consists of the
following:
1. Summary and Narrative
2. Reports
• Cash and Investment Summary
• Investment Portfolio - Detailed Inventory by Agency
• Investment Portfolio - Detail of Activity
• Schedule of Outstanding General Obligation & Revenue Bonds
• Schedule of Interfund I3orrowings and Investments
The City's Investment Portfolio
The City's investment activities are governed by State regulations and the City of Yakima's
Investment Policy, as revised 9/06/11.
Snapshot of the Portfolio
The City's Investment Portfolio can be divided into two general categories:
1)A Liquidity Portfolio of overnight investments. This category generally consists only of
funds invested in the Local Government Investment Pool (LGIP) managed by the State
Treasurer.
2)A Security Portfolio of investments in various securities with maturities normally not to
exceed five years except when conditions warrant, and then up to eight years.
The effective yield on the City's entire Investment Portfolio for the quarter ending 6/30/12
continues to be disappointing at 1.2% with almost no change from first quarter. The LGIP is
earning 0.16 %, up only 3 /100ths of a point from last quarter. The security portfolio earned
1.35% as higher yielding securities continue to mature and can only be replaced with
securities yielding pitiful returns. Unbelievably, the market yields are still lower than our
portfolio averages. Unfortunately this means that our callable securities will continue to be
called and we will continue to earn lower returns upon reinvestment The investment
portfolio as a whole is not expected to perform well in the foreseeable future. Until the
economy truly rebounds, rates are likely to continue to be dismal and returns will be small.
Resolution Ordinance Other Report
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding
Source: Phone:
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Accept report.
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
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O 2nd Qtr Treasury Report
City of Yakima
Cash and Investment Summary
June 30, 2012 .
Percent of Average Average
Description Qty Par Book Portfolio Yield Q2 '12 Yield Q1 '12
Cash Balances on Hand and in Banks NA $ 6,723,109 NA NA NA
Local Government Investment Pool (LGIP)" 1 $ 6,094,645 6,094,645 12% 0.16% 0.13%
Federal Agency Coupon and Discount 19 42,806,000 42,281,470 86% 1.34% 1.48%
Other investments 2 750,000 802,975 2% 1.78% 1.96%
Totals 22 $ 49,650,645 $ 49,179,089 100% 1.20% 1.21%
Book Balance Purchases Interest Maturities, Calls Book Balance
Summary of Investment Activity 4/1 /2012 & Deposits Reinvested & Withdrawals 6/30/2012
Local Government Investment Pool (LGIP) $ 6,092,283 $ - $ 2,362 $ - $ 6,094,645
Federal Agency Coupon and Discount 35,167,655 12,740,250 - 5,626,436 42,281,470
Other Investments 815,490 - - 815,490
Totals $ 42,075,428 $ 12,740,250 $ 2,362 $ 5,626,436 $ 49,191,604
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City of Yakima
Investment Portfolio - Inventory by Agency
June 30, 2012
Expected Call Most
Agency Inv# Face Value Price Coupon Step Yield Maturity Settle Next Call Type Likely Call
Federal Home Loan Bank
FHLB 1456 2,000,000 2,289,700 5.630 2.050 6/13/16 3/12/12 6/13/16 NC 6/16/16
FHLB Totals and Aver: 2,000,000 2,289,700 2.050
Federal Home Loan Mortgage Corporation
FHLMC 1438 2,000,000 2,000,000 2.000 2.000 8/8/16 08/08/11 2/8/13 lx 2/8/13
FHLMC 1440 1,800,000 1,800,000 2.000 2.000 8/17/16 08/17/11 8/17/12 lx 8/17/12
FHLMC 1451 2,000,000 2,002,722 1.500 1.330 9/21/16 11/29/11 9/21/12 lx 9/21/12
FHLMC 1453 2,000,000 2,001,920 1.300 1.250 1/30/17 01/30/12 1/30/14 Qrty 1/30/14
FHLMC 1459 2,000,000 2,000,000 1.350 1.350 11/30.17 5/30.12 5/30/13 Qrty 5/30/13
FHLMC Totals and Av 9,800,000 9,804,642 1.577
Federal National Management Association
FNMA 1439 1,640,000 1,640,000 2.000 2.000 8/17/16 8/17/11 8/17/12 lx 8/17/12
FNMA 1443 3,000,000 3,000,000 1.000 Step 1.000 9/14/16 9/14/11 9/14/12 Qtry 9/14/12
FNMA 1445 4,000,000 4,000,000 1.420 1.420 9/20/16 9/20/11 9/20/13 lx 9/20/13
FNMA 1446 2,000,000 2,000,000 1.500 1.500 9/21/16 9/21/11 9/21/12 lx 9/21/12
FNMA 1448 1,750,000 1,750,000 1.000 1.000 9/9/15 9/9/11 9/9/13 1x 9/9/13
FNMA 1449 1,250,000 1,250,000 1.000 1.000 9/14/15 9/14/11 9/14/12 lx 9/14/12
FNMA 1452 1,000,000 1,000,000 0.850 0.850 12/5/14 12/5/11 12/5/13 lx 12/5/13
FNMA 1460 5,000,000 4,737,030 1.100 1.100 6/1/17 6/28/12 6/1/17 NC 6/1/17
FNMA 1461 2,000,000 2,008,310 0.900 0.760 9/27/16 6/28/12 3/27/14 lx 3/27/14
FNMA Totals and Ave: 21,640,000 21,385,340 1.195
Financing Corporation
FICO 1450 2,000,000 1,928,880 1.020 1.020 5/11/15 10/20/11 5/11/15 NC 5/11/15
FICO 1454 722,000 678,045 1.200 1.200 5/2/17 2/2/12 5/2/17 NC 5/2/17
FICO 1455 2,356,000 2,199,953 1.348 1.348 4/6/17 2/29/12 4/6/17 NC 4/6/17
FICO 1457 2,146,000 1,995,422 1.340 1.340 10/6/17 4/25/12 10/6/17 NC 10/6/17
FICO 1458 2,142,000 1,999,488 1.250 1.250 11/30/17 5/21/12 11/30/14 NC 11/30/14
FICO Totals and Avera 9,366,000 8,801,788 1.241
Other Investments
CNTY 1442 500,000 552,975 5.000 1.631 7/1/15 8/19/11 7/1/15 NC 7/1/15
YF -CD 1447 250,000 250,000 2.050 2.100 3/30/16 8/31/11 2/28/15 NC 2/28/15
Other Totals and Averi 750,000 802,975 1.777
'Grand Totals $ 43,556,000 $ 43,084,445 1.347 Average Expected Yield I
on Steps Investment 1 Rate up to: 2013 2013 2014 2014 2015 2015 2016 2016
1443 Mar & Sept 14 1.000% 1.125% 1.250% 1.500% 1.750% 2.250% 2.750% 3.500%
Pa PDFConvert.1458.1.TSO_Q2_.
City of Yakima
Investment Portfolio - Detail of Activity
For the Quarter Ended June 30, 2012
Yield Beginning Calls and Ending Date of
Agency Fund Inv# Rate Face Value Purchases Maturities Face Value Activity
Federal Home Loan Bank
FHLB 896 1456 2.050 2,000,000 2,000,000
FHLB Totals 2,000,000 - - 2,000,000
Federal Home Loan Mortgage Corporation
FHLMC 896 1429 1.949 1,000,000 (1,000,000) - 6/1/12
FHLMC 896 1438 2.000 2,000,000 2,000,000
FHLMC 896 1440 2.000 1,800,000 1,800,000
FHLMC 896 1451 1.330 2,000,000 2,000,000
FHLMC 896 1453 1.250 2,000,000 2,000,000
FHLMC 896 1459 1.350 2,000,000 2,000,000 5/30/12
FHLMC Totals 8,800,000 2,000,000 (1,000,000) 9,800,000
Federal National Management Association
FNMA 896 1427 2.050 1,000,000 (1,000,000) - 4/20/12
FNMA 896 1430 2.250 2,000,000 (2,000,000) - 6/6/12
FNMA 896 1433 2.250 1,615,000 (1,615,000) - 6/6/12
FNMA 896 1439 2.000 1,640,000 1,640,000
4A 896 1443 1.000 3,000,000 3,000,000
IA 896 1445 1.420 4,000,000 4,000,000
FNMA 896 1446 1.500 2,000,000 2,000,000
FNMA 896 1448 1 000 1,750,000 1,750,000
FNMA 896 1449 1 000 1,250,000 1,250,000
FNMA 896 1452 0 850 1,000,000 1,000,000
FNMA 896 1460 1100 5,000,000 5,000,000 6/28/12
FNMA 896 1461 0.760 2,000,000 2,000,000 6/28/12
FNMA Totals 19,255,000 7,000,000 (4,615,000) 21,640,000
Financing Corporation
FICO 896 1450 1.020 2,000,000 2,000,000
FICO 896 1454 1.200 722,000 722,000
FICO 896 1455 1.348 2,356,000 2,356,000
FICO 896 1457 1.340 2,146,000 2,146,000 4/25/12
FICO 896 1458 1.250 2,142,000 2,142,000 5/21/12
FICO Totals 5,078,000 4,288,000 - 9,366,000
Other Investments
Grays County Bonds 896 1442 5.000 500,000 500,000
Yakima Federal CD 896 1447 2.050 250,000 250,000
Other Investment Totals 750,000 - - 750,000
1,5'7And Totals $ 35,883,000 $ 13,288,000 $ (5,615,000) $ 43,556,000 1
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City of Yakima
Bond Schedule - by Project Group
For the Quarter Ended June 30, 2012
Final Amount Current Redeemed
Date Issued Payment Description Note Issued Balance Due This Quarter
General Obligation Bonds
5/8/2007 6/1/2012 PFD Convention Center I Unrefunded portion of 2002 issue $1,280,000 $0 $235,000
9/7/2004 11/1/2019 PFD Convention Center II Refunded 1996 issue 4,175,000 2,820,000
5/8/2007 5/1/2026 PFD Convention Center III Partial refunding of 2002 issue 4,910,000 4,855,000 15,000
8/28/2009 12/1/2018 PFD Capitol Theatre Tax exempt portion 2,055,000 1,515,000
8/28/2009 12/1/2024 PFD Capitol Theatre Build America Bonds (Taxable) 1,755,000 1,755,000
8/28/2009 12/1/2032 PFD Capitol Theatre Build America Bonds (Taxable) 3,225,000 3,225,000
6/17/2003 12/1/2023 Sundome Expansion Deferred Interest- Maturity $2.5M 1,430,528 943,268
6/17/2003 12/1/2013 Law and Justice Center Refunded1994 issue 4,155,000 985,000
9/7/2004 12/1(2014 Fire Station Refunded 1995 issue (voted issue) 2,300,000 825,000
8/28/2008 12/1/2021 Fire Apparatus Ladder Truck 760,000 605,000
5/8/2007 5/1/2022 Fire Station Remodel Facility 815,000 600,000 45,000
8/28/2008 12/1/2019 Infrastructure Projects Ped crossing, street, infrastructure 2,190,000 1,635,000
5/8/2007 5/1/2022 Downtown Futures Renovate downtown improvements 1,490,000 1,090,000 85,000
5/8/2007 5/1/2017 River Road River Road improvements 1,765,000 980,000 170,000
12/1/2005 12/1/2015 Parks and Recreation Parks improvements 755,000 340,000
Subtotal General Obligation Bonds $33,060,528 $22,173,268 $550,000
Certificate of Participation - State of Washington
6/1/2011 12/1/2020 Fire Apparatus Two trucks purchased $576,847 $523,124
Revenue Bonds
12/2/2003 11/1/2014 Wastewater $7,390,000 $1,835,000
5/31/2012 11/1/2023 Wastewater 2003 $10,155,000 refunded May 2012 9,400,000 9,400,000
6/5/2008 11/1/2027 Wastewater 5,440,000 4,770,000
6/5/2008 11/1/2018 Water Refunded 1998 issue 1,883,951 1,385,000
9/4/2004 9/1/1934 Irrigation 5,215,000 4,465,000
Subtotal Revenue Bonds $29,328,951 $21,855,000 $0
(Grand Total $62,389,479 $44,028,268 $550,000
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City of Yakima
Interfund Borrowings and Investments
For the Quarter Ended June 30, 2012
Original Beginning Ending
Description Balance Balance Issued Retired Balance Investment Held by
Local Improvement District Bonds /Notes $1,432,509 $728,000 $108,000 $620,000 Equipment Rental
Irrigation Capital Fund 0 680,000 299,000 120,000 859,000 Equipment Rental
Parks Capital Fund - Upper Kiwanis Park 0 0 520,000 0 520,000 Equipment Rental
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