HomeMy WebLinkAbout08/20/2013 05C 2013 2nd Quarter Treasury ReportI
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 15�
For Meeting of: 8/20/2013
ITEM TITLE: 2013 - 2nd Quarter Treasury Report.
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
The Treasury Report for the first quarter of 2013 is attached and consists of the following:
1. Memo: Summary and Narrative
2. Reports
Cash and Investment Summary
Investment Portfolio - Detailed Inventory by Agency
Investment Portfolio — Detail of Activity
Bonded Debt Schedule
Schedule of Interfund Borrowings and Investments
Interest earnings are on target to meet the 2013 budget.
Resolution:
Other (Specify): Report
Contract:
Start Date:
Item Budgeted: NA
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
Ordinance:
Contract Term:
End Date:
Amount:
Public Trust and Accountability
APPROVED FOR
SUBMITTAL: City Manager
4:=IjftT &O.J,
Description
2nd Qtr Treasury Narrative
Treasury Report 2nd Qtr 2013
Memorandum
To: The Honorable Mayor and Members of City Council
From: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
Date: August 20, 2013
Re: 2013-2 nd Quarter Treasury Report: Summary and Narrative
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 September 6, 2011.
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) An Investment Portfolio of time deposits and 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 6/30/13 has fallen
from 1.15% to 1.03 %. The average is skewed by the sudden increase in the Local Government
Investment Pool which has a very low rate of return due to market conditions. The sudden increase
in the Pool is the $5 million loan proceeds for the Street Project. As Project expenditures are
incurred, the General fund is reimbursed by the Pool. Thus the balance in such a low yielding
vehicle is for a brief time only. Removing the impact of the loan proceeds results in an average yield
of 1.11 %, lower than first quarter as expected.
Interest rates are beginning to rise slowly. Two of the City's investments survived call dates in July
which indicates that they are earning at or below the rate at which the issuer could reissue them. It
is predicted that only one more investment will be called in 2013 due to its relatively high earnings
rate (1.42 %). Bonds which would have been called prior to the recent rise in rates may now actually
be kept till maturity. This rise in rates is fairly modest and it remains to be seen if it is just a "bounce"
or if rates are truly beginning to trend upward. Whichever is true, we are likely to see some volatility
as investors test the water and the Fed tries to keep things steady.
The LGIP yield has continued its downward slide. It is essentially an overnight pool so one cannot
expect much in this market. It yielded about 0.14% this quarter as opposed to 0.17% in the first
quarter. The LGIP is considered to be a very poor investment and is utilized solely for emergency
cash needs and currently, to keep designated loan proceeds separate from other cash holdings.
Overnight rates in our bank accounts yield a higher rate than LGI P and so we have been
maintaining larger balances there than we have done historically.
The City's Bonded Debt Schedule
The notable change to the Debt Schedule is the $5 million borrowing for the Street Demonstration
Project. Monthly payments will begin in July. Various other scheduled principal payments on
existing debt are reflected as well.
August 20, 2013
Interfund Borrowings and Investments
Refuse was temporarily in a negative cash position at the end of the quarter. For a particular fund to
be in a negative cash position for a few days or weeks is not an unusual occurrence due to the
uneven flows of revenues and expenditures throughout the year. Certain fees and charges occur at
the beginning of the calendar year that will expire month by month as the year progresses. General
Fund loaned cash to cover excess expenditures. The cash balance in the Refuse fund was positive
again within a few days of this report. As per the City's Interfund Loan Program, adopted earlier this
year, the General Fund will begin to charge interest if the loan continues more than one calendar
quarter.
City of Yakima
Cash and Investment Summary
June 30, 2013
Page 1 of 5
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Book Balance
Purchases
Interest
Percent of
Average
Average
Description
Qty
Par
Book
Portfolio
Yield Q1'13
Yield Q2'13
Cash Balm 1432508.51
$ 1,701
NA
$ 10,588,382
NA
NA
NA
Local GovE 514000
1
$ 8,804,001
8,804,001
15%
0.17%
0.14%
Federal Agency Coupon and Discount
19
- 46,746,000
46,008,927
79%
1.22%
1.19%
Other Investments
2
3,045,000
3,397,617
5%
1.77%
1.16%
Total Invested
22
$ 58,595,001
$ 58,210,545
100%
1.15%
1.03%
Page 1 of 5
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Book Balance
Purchases
Interest
Maturities, Calls
Book Balance
Summary of Investment Activity
4/1 /2013
& Deposits
Reinvested
& Withdrawals
6/30/2013
Local Government Investment Pool (LGIP)
$ 3,802,300
$ 5,000,000
$ 1,701
$ -
$ 8,804,001
Federal Agency Coupon and Discount
42,017,249
6,991,678
-
3,000,000
46,008,927
Other Investments
815,490
2,582,127
-
-
3,397,617
Totals
$ 46,635,039
$ 14,573,805
$ 1,701
$ 3,000,000
$ 58,210,545
Page 1 of 5
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City of Yakima
Investment Portfolio - Inventory by Agency
June 30, 2013
Expected Call Most
Agency Inv# Face Value Price Coupon Step Yield Maturity Settle Next Call Type Likely Call
Federal 1432508.51
FFCB 514000 2,000,000 2,000,000 1.290 1.290 9/25/18 9/25/12 9/25/13 Amer 9/25/18
FFCB Totals and Avera
2,000,000
2,000,000
Coupon
1.290
Rate up to:
2013
2016
FHLMC 1453
2,000,000
Federal Home Loan Bank
1.300
1.280
1130/17
01/30/12
1/30/14
Qrty
1/30/17
FHLMC 1463
3,000,000
FHLB 1456
2,000,000
2,289,700
5.630
2.050
6/13/16
3/12/12
6/13/16
NC
6/13/16
FHLB 1466
2,000,000
1,998,940
1.150
1.160
7/25/18
2/6/13
7/25/13
Qrty
7/25/18
FHLB 1467
2,000,000
1,994,456
0.850
0.910
10/30/17
2/6/13
7/30/13
Qrty
10/30/17
FHLB 1470
2,000,000
2,000,000
1.000
Step to 2.5% 1.200
6/20/18
6/20/13
9/20/13
Qrty
6/20/17
FHLB Totals and Aver:
8,000,000
8,283,096
9/9/13
1.355
9/9/15
FNMA 1452
11000,000
1,000,000
0.850
Federal Home Loan Mortgage Corporation
Coupon Steps
Coupon
Investment #
Rate up to:
2013
2016
FHLMC 1453
2,000,000
2,001,920
1.300
1.280
1130/17
01/30/12
1/30/14
Qrty
1/30/17
FHLMC 1463
3,000,000
3,000,000
1.000
1.000
1/17/18
10/17/12
10/17/14
lx
1/17/18
FHLMC Totals and Av
51000,000
5,001,920
1.112
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
9/9/15
FNMA 1452
11000,000
1,000,000
0.850
0.850
12/5/14
12/5/11
12/5/13
lx
12/5/14
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
0.900
9/27/16
6/28/12
3/27/14
1x
9/27/16
FNMA 1468
2,000,000
2,000,000
1.200
1.200
4/18/18
4/18/13
10/18/13
Qrty
4/18/18
FNMA 1469
3,000,000
2,991,678
1.000
1.050
12/20/18
5/20/13
5/20/14
Qrty
12/20/18
FNMA Totals and Ave:
18,750,000
18,487,018
1.127
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
11/30/17
FICO 1464
3,630,000
3,435,105
1.050
1.050
2/8/18
10/31/12
2/8/18
NC
2/8/18
FICO Totals and Avera
12,996,000
12,236,893
1.187
Other Investments
CNTY 1442
500,000
565,490
5.000
1.500
7/1/15
8/19/11
7/1/15
NC
7/1/15
CNTY 1471
2,295,000
2,582,127
5.000
1.000
9/1/16
6/24/13-
9/1/16
NC
9/1/16
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 Aver.
3,045,000
3,397,617
1.164
Grand Totals
$ 49,791,000
$ 49,406,544
1.188
AverageExpected Yield
Page 2 of 5 Copy of TSO Q2 2013.xlsx
__._ -- __. __ -
Coupon Steps
Coupon
Investment #
Rate up to:
2013
2016
2016
2017
2017
Steps
1470
1 June, Dec 20
1.000%
1.125%
1.250%
1.500%
2.500%
Page 2 of 5 Copy of TSO Q2 2013.xlsx
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City of Yakima
Investment Portfolio - Detail of Activity
Quarter Ending June 30, 2013
Page 3 of 5 Copy of TSO Q2 2013.xlsx
Yield
Beginning
Calls and Ending
Date of
Agency
Inv#
Rate
Face Value
Purchases
Maturities Face Value
Activity —
Federal Farm Credit Bureau
FFCB
1432509
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
1466
1.160
2,000,000
2,000,000
FHLB
1467
0.910
2,000,000
2,000,000
FHLB
1470
1.200
2,000,000
2,000,000
6/20/13
FHLB Totals
6,000,000
2,000,000
- 8,000,000
Federal Home Loan Mortgage Corporation
FHLMC
1453
1.280
2,000,000
2,000,000
FHLMC
1459
1.350
2,000,000
(2,000,000) -
5/30/13
FHLMC —
1463
_1.000 -
3,000,000
- -
31000,000
FHLMC
1465
1.020
1,000,000
(1,000,000) -
5/21/13
FHLMC Totals
8,000,000
-
(3,000,000) 5,000,000
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
0.900
2,000,000
2,000,000
FNMA
1468
1.200
2,000,000
2,000,000
4/18/13
FNMA
1469
1.050
3,000,000
3,000,000
5/20/13
FNMA Totals
13,750,000
5,000,000
- 18,750,000
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
I
FICO
1464
1.050
3,630,000
3,630,000
FICO Totals
12,996,000
-
- 12,996,000
Other Investments
Grays County Bonds
1442
1.500
500,000
500,000
Cowlitz County Bonds
1471
1.000
2,295,000
2,295,000
6/24/13
Yakima Federal CD
1447
2.050
250,000
250,000
Other Investment Totals
750,000
2,295,000
- 3,045,000
Grand Totals
$ 43,496,000
$ 9,295,000
$ (3,000,000) $ 49,791,000
Page 3 of 5 Copy of TSO Q2 2013.xlsx
City of Yakima
Bonded Debt Schedule - by Project Group
Quarter Ending June 30, 2013
Final Amount Current Redeemed
Date Issued Payment Description Note Issued Balance Due This Quarter
General Oblig
1432508.51
Fire Apparatus
Ladder Truck
760,000
555,000
0
9/7/2004
11/1/2019
PFD Convention Center II
Refunded 1996 issue
4,175,000
2,500,000
260,000
5/8/2007
4/13/3307
PFD Convention Center III
Partial refunding of 2002 issue
4,910,000
4,595,000
0
8/28/2009
12/1/2018
PFD Capitol Theatre
Tax exempt portion
2,055,000
1,325,000
0
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
841,654
0
6/17/2003
12/1/2013
Law and Justice Center
Refunded 1994 issue
4,155,000
500,000
0
9/7/2004
12/1/2014
Fire Station
Certificate of Participation - State of Washington
2,300,000
560,000
0
8/28/2008
12/1/2021
Fire Apparatus
Ladder Truck
760,000
555,000
0
5/8/2007
5/1/2022
Fire Station
Remodel Facility
815,000
550,000
50,000
8/28/2008
12/1/2019
Infrastructure Projects
Ped crossing, street, infrastructure
21190,000
1,455,000
0
5/8/2007
5/1/2022
Downtown Futures
Renovate downtown improvements
11490,000
1,000,000
90,000
5/8/2007
5/1/2017
River Road
River Road improvements
1,765,000
800,000
180,000
6/20/2013
6/20/2028
Street Project Demonstration
Various City street improvements.
5,000,000
5,000,000
0
12/1/2005
12/1/2015
Parks and Recreation
Parks improvements
755,000
260,000
0
Subtotal General Obligation Bonds
$37,535,528
$25,261,654
$580,000
Certificate of Participation - State of Washington
6/1/2011
12/1/2020
Fire Apparatus
Two trucks purchased
$576,847
$472,526
$0
3/19/2013
7/1/2023
Fire Apparatus
One truck
$310,414
$310,414
$0
Revenue Bonds
12/2/2003
11/1/2014
Wastewater
$7,390,000
$1,060,000
$0
5/31/2012
11/1/2023
Wastewater
Refunded 2003 $10,155,000 issue
9,400,000
9,355,000
0
6/5/2008
11/1/2027
Wastewater
5,440,000
4,555,000
0
6/5/2008
11/1/2018
Water
Refunded 1998 issue
1,883,951
1,210,000
0
9/4/2004 9/1/1934 Irrigation
5,215,000
4,345,000
0
Subtotal Revenue Bonds
$29,328,951
$20,525,000
$0
Grand Total $67,174,893 $46,097,068 $580,000
-- - -
City of Yakima
Interfund Borrowings and Investments
Quarter Ending June 30, 2013
Original Beginning Ending
Description Balance Balance Issued Retired Balance Investment Held by:
Local Improvement District Bonds /Notes
$ 1,432,509 $
575,000
$ 66,500 $
508,500
Equipment Rental
Irrigation Capital Fund
514,000
406,000
339,000
67,000
Equipment Rental
REET 1- Upper Kiwanis Park
600,000
600,000
50,196
549,804
Equipment Rental
Ending Cash
Funds in Negative Cash Position at Quarter End Balance Cash Extended by:
Fund 471 - Refuse (136,596) General Fund
Refuse cash was fully expended at the end of the quarter due to timing issues. The cash balance is positive again as of the date of this report. An interfund loan is not
necessary.
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