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04/20/2021 04C 2021 1st Quarter Treasury Report a\'4\lyy bxk ik 1 + PPP d g. P A PPPPPP+PP s' lii it tYlltYlA.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.C. For Meeting of:April 20, 2021 ITEM TITLE: 2021 1st Quarter Treasury Report SUBMITTED BY: Steve Groom, Director of Finance & Budget SUMMARY EXPLANATION: The Treasury Report for the first quarter of 2021 is attached and consists of the following: 1 . First Quarter Treasurer's Report • Executive Summary • Cash and Investments • Longterm Debt • Investment Committee Investment Transactions Review ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Accept report. ATTACHMENTS: Description Upload Date Type D 021 1 Treasury f ope 4/71 021 r Me o 2 :44 T'eon, • ;% FINANCE Date: April 5, 2021 ,Ltrit ".1 yyPTA To: Mayor and City Council 4 CERTIRCATEOFEXCEUNCE Bob Harrison, City Manager CKTY Of:VA:gft,10, From: Steve Groom, Finance Director Kimberly Domine, Finance Division Manager Jennifer Morris, Financial Services Officer Re: 2021 — 1st 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 $102.1 million: $13.6 million in depository banks, $52.5 million in the State Pool, and $36.0 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). The March 2021 balance is lower than prior year due to approximately$4.4 million in Mill Site reimbursement not yet received. City of Yakima Liquid Cash and investments History $120,000,000 $100,000,000 ,!: 4 $80,000,000 $60/000,000 : $40,000,000 ':!" $20,000,000 7,1 r 3 PINM'CE.. The City's Investment Portfolio The Citys 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: • 1500 $2,667,000 Resolution Funding Corp. matured 1/15/2021 • 1549 $1,000,000 US Treasury matured 3/31/2021 Purchases: During the last quarter, the following were purchased: • 1558 $2,000,000 FHLB to mature 10/17/2023 • 1559 $2,000,000 US Treasury to mature 03/31/2024 • 1560 $2;000,000 FFCB to mature 12/6/2023 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: 1.01% LGIP State Pool 30-day yield: 0.10% Weighted average maturity of City investments, excluding LGIP: 297 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. 4 FINANCE Current Rates. As of March 31, 2021, 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 0.07% and the 5-year Treasury at 0.97% was 90 basis points. The 30-day yield of the State Pool was at 0.10%, with a 49-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% investments are not typically actively `1,GIP 82,490.8t8 891.... 100%1: traded, meaning that no attempt to buy iTreasunes 1,000,000 1% t00% i': low and sell high" or "time the market is i. gencies 30,000,000 34% 100% made. 'Investments purchased with the Corporates 5,000A00 6% 15% r,. intent of providing investment income are intended to be held to maturity, relying on 88,490,818. 100%.... 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 Borrowinns and Investments Borrowing between funds is temporary in nature, reviewed periodically by staff and Council, amended as circumstances change. Currently there are no interfund borrowing balances between funds. 5 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: • 1500 $2,667,000 Resolution Funding Corp. matured 1/15/2021 • 1549 $1 ,000,000 US Treasury matured 3/31/2021 Purchases: During the last quarter, the following were purchased: • 1558 $2,000,000 FHLB to mature 10/17/2023 • 1559 $2,000,000 US Treasury to mature 03/31/2024 • 1560 $2,000,000 FFCB to mature 12/6/2023 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: 1.01% LGIP State Pool 30-day yield: 0.10% Weighted average maturity of City investments, excluding LGIP: 297 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. 6 FINANCE Current Rates. As of March 31, 2021, 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 0.07% and the 5-year Treasury at 0.97% was 90 basis points. The 30-day yield of the State Pool was at 0.10%, with a 49-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 % investments are not typically actively LGIP 52,490,818 59% 100% traded, meaning that no attempt to "buy Treasuries 1,000,000 1% 100% low and sell high" or "time the market" is Agencies 30,000,000 34% 100% made. Investments purchased with the Corporates 5,000,000 6% 15% intent of providing investment income are intended to be held to maturity, relying on 88,490,818 100% 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. Currently there are no interfund borrowing balances between funds. City of Yakima Cash and Investment Summary March 31 , 2021 Current Prior Quarter Prior Year Description 3/31/2021 12/31/2020 3/31/2020 Cash Balances on Hand in Banks $ 13,611 ,017 $ 14,699,272 $ 17,747,789 Local Government Investment Pool (LGIP) 52,490,818 64,472,094 19,857,276 Investment Portfolio 36,000,000 33,667,000 57,829,000 Total Investments 88,490,818 98,139,094 77,686,276 Total Cash and Investments $ 102,101 ,835 $ 112,838,366 $ 95,434,065 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 12/31/2020 & Deposits Reinvested & Withdrawals 3/31/2021 Local Government Investment Pool (LGIP) $ 64,472,094 $ - $ 18,724 $ (12,000,000) $ 52,490,818 Investment Portfolio 33,667,000 6,000,000 - (3,667,000) 36,000,000 Total Investments $ 98,139,094 $ 6,000,000 $ 18,724 $ (15,667,000) $ 88,490,818 City of Yakima Distribution of Cash and Investments as of 3/31/2021 Depository Banks, $13,611,017 , 13% Investment Portfolio, 36,000,000 , ...aaaaaa . „aaaa. aaaa a _a a, aaaaaaaa aaa,a. aaaa, aaa. aa a _. , , amaaa --a_ - :::::::::::::: • - ,", ::::„ _„, ,„„ ..anteggearta,nall117: Irjr, Local Government Investment Pool, $52,490,818 , 52% City of Yakima Investment Portfolio - Inventory by Agency March 31 , 2021 Expected Days to Call Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch FFCB 1518 3133EKGY6 1,000,000 1,000,000 2.375 2.375 4/15/19 4/15/21 105 1,000,926 NC Aaa AA+ AAA BNY 1521 06406FAB9 1,000,000 989,800 2.050 2.574 4/30/19 5/3/21 123 1,000,098 NC Al A AA- US T 1543 912828WY2 1,000,000 1,009,453 2.250 1.660 12/11/19 7/31/21 212 1,007,344 NC Aaa AA+ AAA FHLMC 1539 3137EAEC9 1,000,000 991,002 1.125 1.650 11/14/19 8/12/21 224 1,003,899 NC Aaa AA+ AAA FFCB 1527 3133EKP67 1,000,000 996,900 1.625 1.780 9/17/19 9/17/21 260 1,007,337 NC Aaa AA+ AAA USB 1515 91159HHP8 1,000,000 997,300 2.625 2.723 3/18/19 1/24/22 389 1,018,391 1X Al A+ AA- MSFT 1512 594918BW3 1,000,000 996,920 2.400 2.575 3/15/19 2/6/22 402 1,016,943 NC Aaa AAA AA+ FHLB 1556 313378CR0 1,000,000 1,032,367 2.250 0.630 3/6/20 3/11/22 435 1,020,619 NC Aaa AA+ NA FNMA 1550 3135G0T45 1,000,000 1,009,506 1.875 1.422 2/14/20 4/5/22 460 1,017,892 NC Aaa AA+ AAA FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 501 1,023,952 NC Aaa AA+ AAA FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 517 1,026,019 NC Aaa AA+ AAA FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 617 1,042,610 Amer Aaa AA+ AA+ FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 656 1,033,738 NC Aaa AA+ AAA FFCB 1551 3133EA7E2 1,000,000 1,014,130 1.960 1.430 2/14/20 11/7/22 676 1,028,942 NC Aaa AA+ AAA FHLB 1544 313381BR5 1,000,000 1,006,250 1.875 1.660 12/11/19 12/9/22 708 1,028,988 NC Aaa AA+ AAA FNMA 1541 3135GOT94 1,000,000 1,023,490 2.375 1.610 11/20/19 1/19/23 749 1,039,971 NC Aaa AA+ AAA FFCB 1557 3133EG5Y7 1,000,000 1,045,401 2.230 0.650 3/6/20 2/2/23 763 1,038,194 NC Aaa AA+ AAA AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 853 1,044,320 NC AA1 AA+ - WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 907 1,066,130 NC Aa2 AA AA UST 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 973 1,060,898 NC Aaa AA+ AAA FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 992 1,068,312 NC Aaa AA+ AAA FHLB 1558 313375ZL4 2,000,000 2,143,690 2.795 0.200 1/7/21 10/17/23 1,020 2,127,886 NC Aaa AA+ AAA FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 1,035 1,033,714 NC Aaa AA+ AAA FFCB 1560 3133EJ2B4 2,000,000 2,147,340 3.000 0.260 3/24/21 12/6/23 1,070 2,142,686 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 1,034,767 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 1,061,935 NC Aaa AA+ AAA UST 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 1,186 2,105,860 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 1,057,617 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 1,054,664 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 1,047,852 NC Aaa NA AAA FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 1,408 1,040,139 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 1,079,646 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 1,043,505 NC NA NA NA Subtotal 33 36,000,000 36,759,050 Avg. 2.25% 37,425,794 LGIP LGIP NA 52,490,818 52,490,818 0.300 0.300 NA NA 1 52,490,818 NC (Grand Totals $ 88,490,818 $ 89,249,868 1.11% 334 $ 89,916,612 City of Yakima Investment Portfolio by Issuer at 3/31/2021 FAMCA, 5,000,000, 6% US T, 6,000,000, 7°la FH LB, 6,000,000, 7% 0 FNMA 3,000,000 4 a 0 FHLMC 1000 000 1/p 1 AAPL la I ,000,000 1 Y" #ssssssssssssYr####ssssr ##s sssssssY�:; 1 1 la 0 BNY 000 000 I I , o1,000,000, a 11 1 FFCB 10,000,000, to MSFT /o I I a trrrMzks"?rrrrk ' '.v �:.+Yr=f' US B 1,000,000, 1/a T 1,000,000, 1 a W M la YY'wtw:'::}}::::::::::::}}::::::::M1� I ryiii:iiiiiiiiiiiiiiiiiiiiiiiiir vxiiiiiiii, •'''''�'x�a' W:iiiiiiiiiiiiiiiiiiiiiiiiiy 'W'yi::iiiiiiiiiiiiiiiiii:5 A'''''�?�iiiiiiii�'��v'vY •• Diversifying by issuer reduces the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations LGIP, 52,490,818,59°la which can vary by issuer. City of Yakima Investment Portfolio Maturity Distribution at 3/31/2021 $5,000,000 $4,500,000 Diversifying by maturity reduces the re-investment risk $4,000,000 the city is subject to in any given month when an $3,500,00o investment matures and the principal is reinvested at rates available at that moment. $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 C.ti� ti� ti� �� �� �'� tie des LA tiC. yP LC. �� �h Lh P�� >� P-P' ©°� cf' (<e`p' 09 V) P��O (C' Q��' Qe'' 0,9 �o� P� ��` ©e� Q�Q PQ� �a� P�Q' Qo'� QQ'C' (,10 ,ct >•)c' 12 City of Yakima Investment Portfolio- Detail of Activity March 31, 2021 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 1551 1,000,000 - - 1,000,000 FFCB 1557 1,000,000 - - 1,000,000 FFCB 1560 - 2,000,000 - 2,000,000 FFCB Total 8,000,000 2,000,000 - 10,000,000 Federal Home Loan Bank 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 1558 - 2,000,000 - 2,000,000 FHLB Total 4,000,000 2,000,000 - 6,000,000 Resolution Funding Corporation RFCSP 1500 2,667,000 - (2,667,000) - RFCSP Total 2,667,000 - (2,667,000) - Federal Home Loan Mortgage Corporation FHLMC 1539 1,000,000 - - 1,000,000 FHLMC Total 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 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 1559 - 2,000,000 - 2,000,000 US Treasury 5,000,000 2,000,000 (1,000,000) 6,000,000 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 33,667,000 6,000,000 (3,667,000) 36,000,000 Other Investments - - - - LGIP(State Pool) LGIP 64,472,094 18,724 (12,000,000) 52,490,818 Other Investment Totals 64,472,094 18,724 (12,000,000) 52,490,818 'Grand Totals $ 98,139,094 $ 6,018,724 $ (15,667,000) $ 88,490,818 City of Yakima Long Tenn Debt Schedule-by Project Group March 31,2021 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 503,558 352,534 8/1/2011 7/1/2034 41200019 2012 Industrial Waste Anaerobic 590,350 445,851 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 18,861,029 °Grand Total 130,673,056 71,563,287 II City of Yakima Interfund Borrowing March 31,2021 Original Beginning Ending Description Balance Balance Issued Retired Balance Local Improvement District Bonds/Notes $ 1,432,509 $ 16,466 $ - $ 16,466 $ 0 Equipment Rental Reserve Total across all funds 1,432,509 16,466 - 16,466 0 15 ;• • FINANCE Committee Review of Investment Rationale Date: January 6, 2021 Investment # 2021-1558 is a 21/i-year Federal Home Loan Bank (FHLB), face value $2,000,000, maturing October 17 2023, 2.795% coupon purchased at 107.18450 to yield 0.20%. This trade settles January 7, 2021 with Wedbush Securities, US Bank Safekeeping. This investment replaces a $2,122,000 Resolution Funding Corp zero- coupon maturing January 15, 2021 and starts purchases in $2M pieces laddering 3 years. Liquidity: At December 31 , month-end, Key Bank checking account balance was $7.2 million (target minimum is $3 Million), US Bank checking balance was $4,8 million and investment portfolio was $33.6 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $57.4 million (target minimum is $5 million), Safety: This purchase is a debt issue of a government-sponsored enterprise (GSE), that carries an explicit Federal guarantee, equivalent to Aaa/AA+rating by Moody's and S&P. Yield. Yield is 0.20%. This investment is 6 basis points over LGIP, seeking to protect yield in an eroding yield / uncertain environment, LGIP's yield is expected to slay level over the next two years. Comparable yields are: LGIP current 30-day yield 0,14121% ' vvww.secureaccess.walov 2-Year Treasury 0.1300% Treasury,gov 3-year Treasi,Lry 0.1700% Treasury.gov Callability. This investment is.not callable (a bullet). Diversification. This purchase brings this issuer to 6,0% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio, Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0,10, the 2-year at 0.13 the 3-year at 0.17, and the 5-year at 0.38%, The Federal Reserve Bank recently signaled their intent to keep rates low for 3 years, We are now filling maturity gaps in a shortened 3-year ladder to minimize reinvestment risk subject to rates at any one point in time and hedging against further decreasing rate LGIP exposure. Investment Committee review:. Finance Director: Date 2PZL Uri City Manager: e") - Date ( 16 " *vi FINANCE Committee Review of Investment Rationale Date: March 3, 2021 Investment#2021-1559 is a 3-year US Treasury(T), face value$2,000,000, maturing March 31 2024, 2.125% coupon purchased at 105-19 to yield 0.29%. This trade settles March 4, 2021 with Wedbush Securities, US Bank Safekeeping. This investment replaces a $1,000,000 U S Treasury maturing March 31, 2021 and improves the laddering over 3 years while reducing the current LGIP balance slightly. Liquidity: At February 28th, month-end, Key Bank checking account balance was $7.9 million (target minimum is $3 Million), US Bank checking balance was $3.5 million and investment portfolio was $33.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $52.4 million (target minimum is $5 million). Safety: This is a Federal Government debt issue, Aaa/AAA Moody's and Fitch rating. Yield. Yield is 0.29%. This investment is 17 basis points higher LGIP, seeking to protect yield in an eroding yield / uncertain environment. LGIP's yield is expected to stay low, in line with Federal Reserve Bank expectations. Comparable yields are: LGIP current 30-day yield 0.12215% wvvw.secureaccess.wa.gov AgencyBullet 0.2800% Broker daily offer list 2-year Treasury 0.1300% Treasury.gov 3-year Treasuryprior day 0.2600% Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 6.0% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio. Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.08, the 2-year at 0.13 the 3-year at 0.26, and the 5-year at 0.67%. The Federal Reserve Bank recently signaled their intent to keep rates low for 3 years. We are now filling maturity gaps in a shortened 3-year ladder to minimize reinvestment risk subject to rates at any one point in time and hedging against further decreasing rate LGIP exposure. Investment Committee review: Finance Director; Date . 5 • 2rWt City Manager: Date ,4/ZOZ 17 S . FINANCE Committee Review of Investment Rationale Date: March 23, 2021 Investment# 2021-1560 is a 2.75-year Federal Farm Credit Bank(FFCB), face value $2,000,000, maturing December 6, 2023, 3.000% coupon purchased at 107.3670 to yield 0.26%. This trade settles March 24, 2021 with Wedbush Securities, US Bank Safekeeping, replacing a $1,000,000 U.S. Treasury maturing March 31, 2021. Liquidity: At February 28th, month-end, Key Bank checking account balance was $7.9 million (target minimum is $3 Million), US Bank checking balance was $3.5 million and investment portfolio was $33.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $52.4 million (target minimum is $5 million). Safety: This purchase is a debt issue of a government-sponsored enterprise (GSE), that carries an explicit Federal guarantee, equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 0.26%. This investment is 15 basis points over LGIP, seeking to protect yield in an uncertain environment. LGIP's yield is expected to stay level over the next year. Comparable yields are: ... _ LGIP current 30-dayyield 0.11023% www.secureaccess.wa.gov 2-year Treasury 0.1500% Treasurmov 3-year Treasury 0.3200% Treasury.gov Caltability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 7.0% of total portfolio. This purchase adds a maturity date previously not covered to city's laddered portfolio. Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0,06, the 2-year at 0.15 the 3-year at 0.32, and the 5-year at 0.87%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. We are now filling maturity gaps in a shortened 3-year ladder to minimize reinvestment risk subject to rates at any one point in time and hedging against further decreasing rate LGIP exposure. Investment Committee review: Finance Director: , , ip"- - ---' _ Date 3. 23 - 202./ II , .,. 7 .../ .I 4 fioz_i ,,. _.....,... __ ,._ . City Manager: --.) Date -1/---'