HomeMy WebLinkAbout11/06/2012 04A 3rd Quarter 2012 Treasury Report BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT rr��//��
Item No. I /4-
For Meeting of: November 6, 2012
ITEM TITLE: 3rd 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 third 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 Borrowings 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 9/30/12
has held steady at about 1.2% thus far in 2013. No real change is expected this year. The
LGIP has actually risen a bit since the beginning of the year, but then it couldn't have gone
much lower. It yielded about 0.18% this quarter, up from 2nd and 1 quarters at 0.16% and
0.13% respectively. Despite this rise in rates it continues to be a very poor investment and is
utilized solely for emergency cash needs at this point. Overnight rates in our bank accounts
yield a higher rate than LGIP and so we have been maintaining larger balances there than
we have done historically.
•
The security portfolio earned 1.30 %, again dropping slightly as higher yielding securities
continue to mature or be called and can only be replaced with securities that have much
lower yields. 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 current: cash balances are higher than one would expect due to the call of several large
holdings in September. These balances are in process of being reinvested at unbelievably
low rates. The market conditions under which we are operating are likely to hold fairly
steady in the near term. The Federal Reserve Chairman announced in September that the
Fed will not raise Treasury rates at least until mid -2014.
Resolution Ordinance Other
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding
Source: Phone:
APPROVED FOR
SUBMITTAL: ag =livir City Manager
STAFF RECOMMENDATION:
Accept report
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
E 2012 3rd Qtr Treasury Services Report
•
• •
City of Yakima
Cash and Investment Summary
September 30, 2012
Percent of Average Average
Description Qty Par Book Portfolio Yield Q2 '12 Yield Q3 '12
Cash Balances on Hand and in Banks NA $ 15,965,533 NA / NA NA
Local Government Investment Pool (LGIP) 1 $ 3,798,787 3,798,787 10% 0.16% 0.18%
Federal Agency Coupon and Discount 19 33,116,000 32,588,748 88% 1.34% 1.30%
Other Investments 2 750,000 815,490 2% 1.78% 1.77%
Total Invested 22 $ 37,664,787 $ 37,203,024 100% 1.23% 1.20%
Book Balance Purchases Interest Maturities, Calls Book Balance
Summary of Investment Activity 7/1/2012 & Deposits Reinvested & Withdrawals 9/30/2012
Local Government Investment Pool (LGIP) $ 6,094,645 $ 2,369 $ 1,773 $ 2,300,000 $ 3,798,787
Federal Agency Coupon and Discount 42,281,470 2,000,000 - 11,692,722 32,588,748
Other Investments 815,490 - - 815,490
•
Totals $ 49,191,605 $ 2,002,369 $ 1,773 $ 13,992,722 $ 37,203,025
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City of Yakima
Investment Portfolio - Inventory by Agency
September 30, 2012
Expected Call Most
Agency Inv# Face Value Price Coupon Step Yield Maturity Settle Next Call Type Likely Call
Federal Farm Credit Bank
FFCB 1462 Z000,000 2,000,000 1.290 1.290 9/25/18 9/25/12 9/25/13 Amer 9/25/13
FFCB Totals and Avera 2,000,000 2,000,000 1.290
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 Avera 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 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 Avi 6,000,000 6,001,920 1.533
Federal National Management Association
FNMA 1445 4,000,000 4,000,000 1.420 1.420 9/20/16 9/20/11 9/20/13 1x 9/20/13
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 1452 1,000,000 1,000,000 0.850 0.850 12/5/14 12/5/11 12/5/13 1x 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] 13,750,000 13,495,340 1.113
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 500,000 565,490 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 Avera 750,000 815,490 1.775
I JGrand Totals $ 33,866,000 $ 33,404,238 1.313 Average Expected Yield I
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City of Yakima
Investment Portfolio -.- Detail of Activity
• III September 30, 2012
Yield Beginning Calls and Ending Date of
Agency Inv# Rate Face Value Purchases Maturities Face Value Activity
Federal Farm Credit Bureau
FFCB 1462 1.290 2,000,000 2,000,000 9/25/12
FFCB Totals - 2,000,000 - 2,000,000
Federal Home Loan Bank
FHLB 1456 2.050 2,000,000 2,000,000
FHLB Totals 2,000,000 - - 2,000,000
Federal Home Loan Mortgage Corporation
FHLMC 1438 2.000 2,000,000 2,000,000
FHLMC 1440 2.000 1,800,000 (1,800,000) - 8/17/12
FHLMC 1451 1.330 2,000,000 (2,000,000) - 9/21/12
FHLMC 1453 1.250 2,000,000 2,000,000
FHLMC 1459 1.350 2,000,000 2,000,000
FHLMC Totals 9,800,000 - (3,800,000) 6,000,000
Federal National Management Association
FNMA 1439 2.000 1,640,000 (1,640,000) - 8/17/12
FNMA 1443 1.000 3,000,000 (3,000,000) - 9/14/12
• FNMA 1445 1 420 4,000,000 4,000,000
FNMA 1446 1.500 2,000,000 (2,000,000) - 9/21/12
FNMA 1448 1.000 1,750,000 1,750,000
FNMA 1449 1.000 1,250,000 (1,250,000) - 9/14/12
FNMA 1452 0.850 1,000,000 1,000,000
FNMA 1460 1.100 5,000,000 5,000,000
FNMA 1461 0.760 2,000,000 2,000,000
FNMA Totals 21,640,000 - (7,890,000) 13,750,000
Financing Corporation
FICO 1450 1 020 2,000,000 2,000,000
FICO 1454 1.200 722,000 722,000
FICO 1455 1.348 2,356,000 2,356,000
FICO 1457 1.340 2,146,000 2,146,000
FICO 1458 1.250 2,142,000 2,142,000
FICO Totals 9,366,000 - - 9,366,000
Other Investments
Grays County Bonds 1442 5.000 500,000 500,000
Yakima Federal CD 1447 2.050 250,000 250,000
Other Investment Totals 750,000 - - 750,000
(Grand Totals $ 43,556,000 $ 2,000,000 $ (11,690,000) $ 33,866,000 I
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City of Yakima
Bond Schedule - by Project Group
' September 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
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
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 Refunded 1994 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
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
5/8/2007 5/1/2017 River Road River Road improvements 1,765,000 980,000
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 $0
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 4,345,000 120,000
Subtotal Revenue Bonds $29,328,951 $21,735,000 $120,000
1Grand Total $62,389,479 $43,908,268 $120,0001
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City of Yakima
Interfund Borrowings and Investments
September 30, 2012
Original Beginning Ending
Description Balance Balance Issued Retired • Balance Investment Held by:
Local Improvement District Bonds /Notes $1,432,509 $620,000 $620,000 Equipment Rental •
Irrigation Capital Fund 0 859,000 345,000 514,000 Equipment Rental
Parks Capital Fund - Upper Kiwanis Park 0 520,000 80,000 0 600,000 Equipment Rental
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