HomeMy WebLinkAbout03/05/2013 05B 4th Quarter 2012 Treasury Report '4 '�
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: March 5, 2013
ITEM TITLE: 4th 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 fourth 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 12/31/12
has dipped slightly as predicted from 1.21% to 1.17 %. New investments are available only
at dismal rates of return and so the effective yield will likely continue to fall as it approaches
market rates. Very little change is expected in the coming 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 0.20% this quarter, up from 3rd and 2nd quarters at 0.18% and 0.16% 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 1.25 %, again dropping slightly from 1.30% in 3 rd quarter 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. Activity has
stabilized as indicated by the reduction in called securities during 2012. Only 7 of our
current holdings are anticipated to be called in 2013 as opposed to the 27 that were called
during 2011.
Resolution Ordinance Other Report
(specify)
Contract: Mail to:
Contract Term: Amount: Expiration Date:
Insurance Required? No
Funding Phone:
Source:
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Accept Report
BOARD /COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ 4th Qtr Treasury Report
City of Yakima
Cash and Investment Summary
December 31, 2012
Percent of Average Average
Description Qty Par Book Portfolio Yield Q3 '12 Yield Q4 '12
Cash Balances on Hand and in Banks NA $ 14,449,872 NA NA NA
Investments :
Local Government Investment Pool (LGIP) 1 $ 3,800,678 3,800,678 6% 0.18% 0.20%
Federal Agency Coupon and Discount 19 40,746,000 40,023,853 68% 1.30% 1.25%
Other Investments 2 750,000 815,490 1% 1.77% 1.77%
Sub Total Invested 22 45,296,678 44,640,021 75% 1.18% 1.14%
Total Cash & Investments $ 59,089,893
Book Balance Purchases Interest Maturities, Calls Book Balance
Summary of Investment Activity 10/1/2012 & Deposits Reinvested & Withdrawals 12/31/2012
Local Government Investment Pool (LGIP) $ 3,798,787 $ - $ 1,891 $ - $ 3,800,678
Federal Agency Coupon and Discount 32,588,748 7,435,105 - 40,023,853
Other Investments 815,490 - - 815,490
Totals $ 37,203,025 $ 7,435,105 $ 1,891 $ - $ 44,640,021
Page 1 of 5 Copy of TSO Q4 2012.xlsx
City of Yakima
Investment Portfolio - Inventory by Agency
December 31, 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 2,000,000 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 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 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 1463 3,000,000 3,000,000 1.000 1.000 1/17/18 10/17/12 10/17/14 lx 10/17/14
FHLMC 1465 1,000,000 1,000,000 1.020 1.020 11/21/17 11/21/12 5/21/13 Qrty 5/21/13
FHLMC Totals and Alm 10,000,000 10,001,920 1.322
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 lx 9/20/13
FNMA 1448 1,750,000 1,750,000 1.000 1.000 9/9/15 9/9/11 9/9/13 lx 9/9/13
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 Avei 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 1464 3,630,000 3,435,105 1.020 1.020 2/8/18 10/31/12 2/8/18 NC 2/8/18
FICO Totals and Avera 12,996,000 12,236,893 1.179
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 Averz 750,000 815,490 1.775
(Grand Totals $ 41,496,000 $ 40,839,343 1.258 Average Expected Yield II
Page 2 of 5 ISO Q4 2012 (3).xlsx
City of Yakima
Investment Portfolio - Detail of Activity
December 31, 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
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 1453 1.250 2,000,000 2,000,000
FHLMC 1459 1.350 2,000,000 2,000,000
FHLMC 1463 1.000 3,000,000 3,000,000 10/17/12
FHLMC 1465 1.020 1,000,000 1,000,000 11/21/12
FHLMC Totals 6,000,000 4,000,000 - 10,000,000
Federal National Management Association
FNMA 1445 1.420 4,000,000 4,000,000
FNMA 1448 1.000 1,750,000 1,750,000
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 13,750,000 - - 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 1464 1.020 3,630,000 3,630,000 10/31/12
FICO Totals 9,366,000 3,630,000 - 12,996,000
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 $ 33,866,000 $ 7,630,000 $ - $ 41,496,000
I
Page 3 of 5 TSO Q4 2012 (3).xlsx
City of Yakima
Bond Schedule - by Project Group
Quarter Ending December 31, 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 $0
9/7/2004 11/1/2019 PFD Convention Center II Refunded 1996 issue 4,175,000 2,500,000 320,000
5/8/2007 5/1/2026 PFD Convention Center III Partial refunding of 2002 issue 4,910,000 4,855,000 0
8/28/2009 12/1/2018 PFD Capitol Theatre Tax exempt portion 2,055,000 1,325,000 190,000
8/28/2009 12/1/2024 PFD Capitol Theatre Build America Bonds (Taxable) 1,755,000 1,755,000 0
8/28/2009 12/1/2032 PFD Capitol Theatre Build America Bonds (Taxable) 3,225,000 3,225,000 0
6/17/2003 12/1/2023 Sundome Expansion Deferred Interest- Maturity $2.5M 1,430,528 943,268 0
6/17/2003 12/1/2013 Law and Justice Center Refunded 1994 issue 4,155,000 500,000 485,000
9/7/2004 12/1/2014 Fire Station 2,300,000 560,000 265,000
8/28/2008 12/1/2021 Fire Apparatus Ladder Truck 760,000 555,000 50,000
5/8/2007 5/1/2022 Fire Station Remodel Facility 815,000 600,000 0
8/28/2008 12/1/2019 Infrastructure Projects Ped crossing, street, infrastructure 2,190,000 1,455,000 180,000
5/8/2007 5/1/2022 Downtown Futures Renovate downtown improvements 1,490,000 1,090,000 0
5/8/2007 5/1/2017 River Road River Road improvements 1,765,000 980,000 0
12/1/2005 12/1/2015 Parks and Recreation Parks improvements 755,000 260,000 80,000
Subtotal General Obligation Bonds $33,815,528 $20,943,268 $1,570,000
Certificate of Participation - State of Washington
6/1/2011 12/1/2020 Fire Apparatus Two trucks purchased $576,847 $523,124 $0
Revenue Bonds
12/2/2003 11/1/2014 Wastewater $7,390,000 $1,835,000 $775,000
5/31/2012 11/1/2023 Wastewater 2003 $10,155,000 refunded May 2012 9,400,000 9,355,000 45,000
6/5/2008 11/1/2027 Wastewater 5,440,000 4,770,000 . 215,000
6/5/2008 11/1/2018 Water Refunded 1998 issue 1,883,951 1,385,000 175,000
9/4/2004 9/1/1934 Irrigation 5,215,000 4,345,000 0
Subtotal Revenue Bonds $29,328,951 $21,690,000 $1,210,000
I lGrand Total $63,721,326 $43,156,392 $2,780,000
Page 4 of 5 TSO Q4 2012 (3).xlsx
City of Yakima
Interfund Borrowings and Investments
Quarter Ending December 31, 2012
Original Beginning Ending
Description Balance Balance Issued Retired Balance Investment Held by:
Local Improvement District Bonds /Notes $1,432,509 $620,000 $45,000 $575,000 Equipment Rental
Irrigation Capital Fund 0 514,000 78,000 436,000 Equipment Rental
Parks Capital Fund - Upper Kiwanis Park 0 600,000 600,000 Equipment Rental
Page 5 of 5 ISO Q4 2012 (3).xlsx