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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 4.C.
For Meeting of: January 19, 2021
ITEM TITLE: 2020 4th Quarter Treasury Report
SUBMITTED BY: Steve Groom, Director of Finance and Budget
Kimberly Domine', Finance Services Division Manager
SUMMARY EXPLANATION:
The Treasury Report for the fourth quarter of 2020 is attached and consists of the following:
4th Quarter Treasurer's Report
• Cash and Investments
• Long term Debt
• I nterfund Borrowings
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Review only. Submitted for routine transparency and accountability.
ATTACHMENTS:
Description Upload Date Type
D uar erly Treasure e rt 11 12021 r Me o
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FINANCE
Date: January 7, 2021
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To: Mayor and City Council CERDECAiratXCEILOCE
Bob Harrison, City Manager =°`•
art OF YAKIMA
From: Steve Groom, Finance Director n,.•..,.,
Kimberly Domine, Finance Division Manager 1."1 rr_1
Jennifer Morris, Financial Services Officer
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Re: 2020 - 4th 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 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 $112.8 million: $14.7 million in depository
banks, $64.5 million in the State Pool, and $33.7 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 Yak:ir,a
Liquid Cash and investments Hfstorr
$12QOC6,000 -
$10O,OQ,000 . .
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3
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:
• 1502 $2,122,000 Resolution Funding Corp. matured 10/15/2020
• 1536 $1 ,000,000 FHLMC matured 10/28/2020
• 1534 $1 ,000,000 US Treasury matured 11/30/2020
• 1542 $1 ,000,000 FFCB matured 12/22/2020
• 1507 $1 ,000,000 FHLB called 12/28/2020
Purchases: During the last quarter, no investments were purchased; proceeds from all calls
and maturities were invested in the State Local Government Investment Pool.
Portfolio and Benchmark Yield and Maturity:
Avg. weighted yield of City investments, excluding LGIP: 0.84%
LGIP State Pool 30-day yield: 0.14%
Weighted average maturity of City investments, excluding LGIP: 236 days
Weighted average maturity of LGIP State Pool 30-day yield: 47 days
Execution of each investment transaction contemplated ongoing cash flows from city operations,
debt obligations, liquid and maturing securities, and contingencies to meet the City's future cash
flow requirements.
The City's Investment Portfolio consists of three general tiers which coincide with the primary
considerations of prudent investing:
1) The Safety portion of the Portfolio consists of funds invested in the Local Government
Investment Pool (LGIP, or State Pool) managed by the State Treasurer, available same-
day. This allows for seasonal fluctuations, primarily the April/October inflows of Property
Tax and the outflows of debt service and capital projects.
2) The Liquidity portion of the Portfolio consist of demand deposit (checking) accounts at
banks which are qualified public depositaries, protected above FDIC-insured balances
through the actions of the Washington State Public Deposit Protection Commission
(PDPC).
3) The Yield portion of the Portfolio consists of a diversified portfolio of Agencies, Treasuries
and/or other authorized investments with staggered maturities of up to five years. Based
on analysis of historical cash reserves and budgetary planning, this segment will not be
subject to seasonal spending and continues to be safely invested long-term.
2
4
FINANCE
Current Rates. As of December 30, 2020, the fixed income market is still plateaued at record low
levels, evidenced by a yield curve that is extremely low and flat. The difference between the 1-
year Treasury at 0.10% and the 5-year Treasury at 0.36% was 26 basis points. The 30-day yield
of the State Pool was at 0.14%, with a 47-day avg. maturity and expected to stay low.
Economic Outlook. The Federal Reserve had lowered the rates in March 2020 lowered to zero,
during the Coronavirus pandemic, and signaled it will likely keep rates low for three years.
Unemployment, nationally, is recovering and the economy is experiencing less volatility; it is
unclear how long nor how deep the current conditions will exist.
Strategy Notes. The City of Yakima's Actual % Policy % 1=
investments are not typically actively LGIP 64,463,552 66% 100% 's
traded, meaning that no attempt to Treasuries 5,000,000 5% 100%
"buy low and sell high" or "time the Agencies 23,667,000 24% 100%
market" is made. Investments Corporates 5,000,000 5% 15%
purchased with the intent of providing 98,130,552 100%
investment income are intended to be
held to maturity, relying on following a
prudent course of action for income
rather than predicting market direction.
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.
3
City of Yakima
Cash and Investment Summary
December 31 , 2020
Current Prior Quarter Prior Year
Description 12/31/2020 9/30/2020 12/31/2019
Cash Balances on Hand in Banks $ 14,699,272 $ 14,735,513 $ 18,154,002
Local Government Investment Pool (LGIP) 64,472,094 51 ,447,363 19,786,229
Investment Portfolio 33,667,000 39,789,000 64,184,000
Total Investments 98,139,094 91 ,236,363 83,970,229
Total Cash and Investments $ 112,838,366 $ 105,971 ,876 $ 102,124,231
Beg Balance Purchases Interest Maturities, Calls End Balance
Summary of Investment Activity 9/30/2020 & Deposits Reinvested & Withdrawals 12/31/2020
Local Government Investment Pool (LGIP) $ 51 ,447,363 $ 13,000,000 $ 24,731 $ - $ 64,472,094
Investment Portfolio 39,789,000 - - (6,122,000) 33,667,000
Total Investments $ 91 ,236,363 $ 13,000,000 $ 24,731 $ (6,122,000) $ 98,139,094
Page 1 of 8 2020 Q4 TSO spreadsheet 01-04-2021
City of
Yakima
Distribution of Cash and Investments as of 12/31/2020
Depository Banks,
$14,699,272 , 13%
Investment
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Local Government
Investment Pool,
$64,472,094 , 57%
Page 2 of 8
City of Yakima
Investment Portfolio - Inventory by Agency
December 31 , 2020
Expected Days to Call
Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch
RFCSP 1500 76116FAG2 2,667,000 2,499,062 2.200 2.200 01/25/18 1/15/21 15 2,666,923 NC Aaa AA+ AAA
UST 1549 912828Q37 1,000,000 997,695 1.625 1.496 2/4/20 3/31/21 90 1,002,644 NC Aaa NA AAA
FFCB 1518 3133EKGY6 1,000,000 1,000,000 2.375 2.375 4/15/19 4/15/21 105 1,006,879 NC Aaa AA+ AAA
BNY 1521 06406FAB9 1,000,000 989,800 2.050 2.574 4/30/19 5/3/21 123 1,004,985 NC Al A AA-
UST 1543 912828WY2 1,000,000 1,009,453 2.250 1.660 12/11/19 7/31/21 212 1,012,266 NC Aaa AA+ AAA
FHLMC 1539 3137EAEC9 1,000,000 991,002 1.125 1.650 11/14/19 8/12/21 224 1,006,207 NC Aaa AA+ AAA
FFCB 1527 3133EKP67 1,000,000 996,900 1.625 1.780 9/17/19 9/17/21 260 1,011,092 NC Aaa AA+ AAA
USB 1515 91159HHP8 1,000,000 997,300 2.625 2.723 3/18/19 1/24/22 389 1,023,139 1X Al A+ AA-
MSFT 1512 594918BW3 1,000,000 996,920 2.400 2.575 3/15/19 2/6/22 402 1,020,425 NC Aaa AAA AA+
FHLB 1556 313378CR0 1,000,000 1,032,367 2.250 0.630 3/6/20 3/11/22 435 1,025,437 NC Aaa AA+ NA
FNMA 1550 3135G0T45 1,000,000 1,009,506 1.875 1.422 2/14/20 4/5/22 460 1,022,171 NC Aaa AA+ AAA
FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 501 1,028,920 NC Aaa AA+ AAA
FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 517 1,031,338 NC Aaa AA+ AAA
FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 617 1,050,467 Amer Aaa AA+ AA+
FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 656 1,039,063 NC Aaa AA+ AAA
FFCB 1551 3133EA7E2 1,000,000 1,014,130 1.960 1.430 2/14/20 11/7/22 676 1,033,261 NC Aaa AA+ AAA
FHLB 1544 313381BR5 1,000,000 1,006,250 1.875 1.660 12/11/19 12/9/22 708 1,033,600 NC Aaa AA+ AAA
FNMA 1541 3135GOT94 1,000,000 1,023,490 2.375 1.610 11/20/19 1/19/23 749 1,045,652 NC Aaa AA+ AAA
FFCB 1557 3133EG5Y7 1,000,000 1,045,401 2.230 0.650 3/6/20 2/2/23 763 1,042,717 NC Aaa AA+ AAA
AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 853 1,048,899 NC AA1 AA+ -
WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 907 1,076,224 NC Aa2 AA AA
UST 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 973 1,069,180 NC Aaa AA+ AAA
FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 992 1,076,308 NC Aaa AA+ AAA
FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 1,035 1,038,269 NC Aaa AA+ AAA
FAMCA 1552 31422BSD3 1,000,000 1,004,430 1.590 1.470 2/14/20 1/10/24 1,105 1,040,309 NC NA NA NA
FNMA 1540 3135G0V34 1,000,000 1,032,055 2.500 1.710 11/14/19 2/5/24 1,131 1,070,899 NC Aaa AA+ AAA
UST 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 1,216 1,067,969 NC Aaa NA AAA
FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 1,252 1,062,713 NC NA NA NA
UST 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 1,339 1,060,078 NC Aaa NA AAA
FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 1,408 1,049,869 NC Aaa AA+ AAA
FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 1,443 1,095,029 NC Aaa AA+ NA
FAMCA 1555 31422BRT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 1,464 1,053,861 NC NA NA NA
Subtotal 32 33,667,000 33,852,589 Avg. 2.19% 34,916,793
LGIP LGIP NA 64,472,094 64,472,094 0.300 0.300 NA NA 1 64,472,094 NC
(Grand Totals $ 98,139,094 $ 98,324,683 0.95% 235 $ 99,388,887
Page 3 of 8 2020 Q4 TSO spreadsheet 01-04-2021
City of Yakima
Investment Portfolio by Issuer at 12/31/2020
FAMCA, 5,000,000, 5%
US T, 5,000,000, 5% FHLB , 4,000,000, 4%
FNMA, 3,000,000, 3%
FFCB 8,000,000 8% RFCSP 2,667,000 3%
0
11111111
ifsessas
FHLMC,
1,000,000,
1,000,000, 1%
AAPL 1 ao 00a 1%
stsssss
BNY, 1,000,000, 110
NEM MSFT 1,000,000 1%
USB, 1000000, 1%
WMT, 1,000,000, 1%
Diversifying by issuer reduces
the credit risk the city is
subject to from any one
issuer as well as diversifies
market price fluctuations
which can vary by issuer. LGIP, 64,472,094, 66%
Page 4 of 8 2020 Q4 TSO spreadsheet 01-04-2021
Page 5 of 8
City of Yakima
Investment Portfolio Maturity Distribution at 12/31/2020
$4,000,000
$a,soo,000 Diversifying by maturity
reduces the re-investment risk
the city is subject to in any
$3,000,000 given month when an
investment matures and the
principal is reinvested at rates
52,5oo,000 available at that moment.
$2,000,000
$1,500,000
$1,000,000
Ssoo,000
$o
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Page 5 of 8 2020 Q4 TSO spreadsheet 01-04-2021
10
City of Yakima
Investment Portfolio- Detail of Activity
December 31, 2020
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 1533 1,000,000 - - 1,000,000
FAMCA 1552 1,000,000 - 1,000,000
FAMCA 1555 1,000,000 - - 1,000,000
FAMCA Total 5,000,000 - - 5,000,000
Federal Farm Credit Bureau
FFCB 1518 1,000,000 - - 1,000,000
FFCB 1519 1,000,000 - - 1,000,000
FFCB 1523 1,000,000 - - 1,000,000
FFCB 1527 1,000,000 - - 1,000,000
FFCB 1537 1,000,000 - - 1,000,000
FFCB 1538 1,000,000 - - 1,000,000
FFCB 1542 1,000,000 - (1,000,000) -
FFCB 1551 1,000,000 - - 1,000,000
FFCB 1557 1,000,000 - - 1,000,000
FFCB Total 9,000,000 - (1,000,000) 8,000,000
Federal Home Loan Bank
FHLB 1507 1,000,000 - (1,000,000) -
FHLB 1509 1,000,000 - - 1,000,000
FHLB 1544 1,000,000 - - 1,000,000
FHLB 1554 1,000,000 - - 1,000,000
FHLB 1556 1,000,000 - - 1,000,000
FHLB Total 5,000,000 - (1,000,000) 4,000,000
Resolution Funding Corporation
RFCSP 1500 2,667,000 - - 2,667,000
RFCSP 1502 2,122,000 - (2,122,000) -
RFCSP Total 4,789,000 - (2,122,000) 2,667,000
Federal Home Loan Mortgage Corporation
FHLMC 1536 1,000,000 - (1,000,000) -
FHLMC 1539 1,000,000 - - 1,000,000
FHLMC Total 2,000,000 - (1,000,000) 1,000,000
Federal National Management Association
FNMA 1540 1,000,000 - - 1,000,000
FNMA 1541 1,000,000 - - 1,000,000
FNMA 1550 1,000,000 - - 1,000,000
FNMA Total 3,000,000 - - 3,000,000
US Treasury
US Treasury 1534 1,000,000 - (1,000,000) -
US Treasury 1543 1,000,000 - - 1,000,000
US Treasury 1545 1,000,000 - - 1,000,000
US Treasury 1546 1,000,000 - - 1,000,000
US Treasury 1549 1,000,000 - - 1,000,000
US Treasury 1553 1,000,000 - - 1,000,000
US Treasury 6,000,000 - (1,000,000) 5,000,000
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 39,789,000 - (6,122,000) 33,667,000
Other Investments - - - -
LGIP(State Pool) LGIP 51,447,363 13,024,731 - 64,472,094
Other Investment Totals 51,447,363 13,024,731 - 64,472,094
!Grand Totals $ 91,236,363 $ 13,024,731 $ (6,122,000) $ 98,139,094
Page 6 of 8 2020 Q4 TSO spreadsheet 01-04-2021
City of Yakima
Long Tenn Debt Schedule-by Project Group
December 31,2020
Date Issued Maturity Description Note Amount of Issue Current Balance
General Obligation Bonds
6/17/2003 12/1/2023 Sundome Expansion Deferred Interest-Maturity$25M 1,430,528 179,062
6/20/2013 12/1/2028 Street Project Demonstration(Refunded) Various City street improvements 3,500,000 2755,876
6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 5,995,000
9/24/2018 6/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 4,071,827
9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,948,649
4/21/2020 12/1/2022 2020 Refunding Bonds,Downtown Future 2020 Refunding Bonds,Downtown Futures 260,000 253,500
4/21/2020 12/1/2021 2020 Refunding Bonds,Fire Apparatus 2020 Refunding Bonds,Fire Apparatus 140,000 70,000
4/21/2020 12/1/2022 2020 Refunding Bonds,WV Fire Station 2020 Refunding Bonds,WV Fire Station 140,000 136,500
4/21/2020 12/1/2032 2020B Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 4,535,000
4/21/2020 12/1/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 12,405,000
4/21/2020 12/1/2044 2020B Convention Center Addition III Ref 2020B Convention Center Addition III Refunded 2,495,000 2,450,000
Subtotal General Obligation Bonds 64,040,528 40,800,414
Certificate of Participation-State of Washington
3/19/2013 6/1/2023 Fire Apparatus One truck 310,414 109,270
9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,863 701,900
7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project(lighting) 1,415,000 1,415,000
9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 965,674
Subtotal Certificates of Participation 4,492,178 3,191,844
Revenue Bonds
43942 49279 2020 Ref 04 Irrigation 2020 Ref 04 Irrigation 3,260,000 3,085,000
43942 46722 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 2,395,000
5/31/2012 11/1/2023 Wastewater Refunded 2003$10,155,000 issue 9,400,000 3,230,000
Subtotal Revenue Bonds 25,905,000 8,710,000
Intergovernmental Loans
8/14/2009 7/1/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 1,320,802
5/6/2010 6/1/2034 41000030-0 2010 Railroad Grade Separation 1,149,841 936,756
6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,325,000
9/30/2015 6/1/2023 '15 Yak Co SIED-21st Ave/Airport 2015 Yakima Co SIED Loan-21st Ave/Airport 307,000 166,099
6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 671,090
11/21/2017 6/1/2024 '17 Yak Co SIED-YV Brewing Project 2017 Yakima Co SIED Loan-YV Brewing Project 61,580 52,388
7/17/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 472,304
6/1/2001 6/1/2021 PW-01-691-071 2001 Fruitavale Neighborhood Sewer 1,466,250 77,625
9/1/2003 6/1/2023 PW-03-691-027 2003 Naches WTP Improvements 2,694,500 404,175
6/27/2005 10/1/2025 SRF-04-65104-037 2005 Naches River WTP Filter Rehab 966,772 235,363
12/30/2005 6/1/2025 PW-05-691-064 2005 River Road Sewer 2,307,000 621,229
4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 849,722
4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 969,191
10/10/2011 3/31/2033 4110000E 2011 Energy Efficiency 503,558 364,810
8/1/2011 7/1/2034 41200019 2012 Industrial Waste Anaerobic 590,350 459,548
6/1/2012 6/1/2031 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,959,871
10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,382775
8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 3,157,895
12/12/2013 10/1/2034 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,460,360
Subtotal Intergovernmental Loans 36,235,351 18,887,002
°Grand Total 130,673,056 71,589,260 II
Page 7 of 8 2020 04 ISO spreadsheet 01-04-2021
City of Yakima
Interfund Borrowing
December 31,2020
Original Beginning Ending
Description Balance Balance Issued Retired Balance
Local Improvement District Bonds/Notes $ 1,432,509 $ 34,072 $ - $ 17,606 $ 16,466 Equipment Rental Reserve
Fund 153- Public Safety Communications 450,000 150,000 - 150,000 - Equipment Rental Reserve
Total across all funds 1,882,509 184,072 - 167,606 16,466
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.A$150,000 payment was made in 2019. The final payment$150,000 will be
paid in December 2020.
Page 8 of 8 2020 Q4 TSO spreadsheet 01-04-2021