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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.C.
For Meeting of: July 20, 2021
ITEM TITLE: 2021 2nd Quarter Treasury Report
SUBMITTED BY: Kimberly Domine, Interim Director of Finance & Budget
SUMMARY EXPLANATION:
The Treasury Report for the second quarter of 2021 is attached and consists of the following:
1 . Second Quarter Treasurer's Report
• Cash and Investments
• Longterm Debt
• I nterfund Borrowings
2. Monthly Transactions Summary
• Investment Committee 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 Q2 Treasury Report t/8/2021 Corer Memo
2
17 :
FINANCE
Date: July 8, 2021
'.WPTA
To: Mayor and City Council < CERTIFICAtEoFtHELLENCE ;
Bob Harrison, City Manager Investment
POI'"
i CITY OF YAKIMA
February 2019
From: Kimberly Domine, Interim Finance Director
Jennifer Morris, Financial Services Officer `- ,5f.,--
Re: 2021 — 2nd 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 $118.2 million: $16.6 million in depository
banks, $57.6 million in the State Pool, and $44.0 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 June 2021 balance is higher
than prior year due to approximately $13 million in American Rescue Plan Funds.
City of Yakima
Liquid Cash and Investments History
$140,000,000 -
$120,000,000
$100,000,000
$80,000,000
$60,000,000 •
$40,000,000
11 1
$20,000,000
$O lD lD lD n n n n W 00 co 00 61 Q1 D1 cn O O O O .--I N
7' ci 7' ci 71 ci ci 71 ci 71 ci 71 ci c-I ci N N N N N N
= Ct U " = Ct 0 i = CL V i = CL V i C CL U " =
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:
• 1518 $1 ,000,000 Federal Farm Credit Bureau. matured 4/15/2021
• 1521 $1 ,000,000 Bank of New York 4/06/2021
Purchases: During the last quarter, the following were purchased:
• 1561 $2,000,000 FFCB to mature 07/19/2023
• 1562 $2,000,000 US Treasury to mature 05/13/2024
• 1563 $2,000,000 US Treasury to mature 07/31/2024
• 1564 $2,000000 US Treasury to mature 09/30/2024
• 1565 $1 ,000,000 US Treasury to mature 04/15/2024
• 1566 $1 ,000,000 US Treasury to mature 06/15/2024
Portfolio and Benchmark Yield and Maturity:
Avg. weighted yield of City investments, excluding LGIP: .86%
LGIP State Pool 30-day yield: 0.07%
Weighted average maturity of City investments, excluding LGIP: 305 days
Weighted average maturity of LGIP State Pool 30-day yield: 37 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
FINA NCE
Current Rates. As of June 30, 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 0.74% was 67 basis points. The 30-day yield
of the State Pool was at 0.07%, with a 37-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 57,600,578 57% 100%
traded, meaning that no attempt to "buy Treasuries 1,000,000 1% 100%
low and sell high" or"time the market" is Agencies 39,000,000 38% 100%
made. Investments purchased with the Corporates 4,000,000 4% 15%
intent of providing investment income 101,600,578 100%
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 Borrowinas 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.
3
City of Yakima
Cash and Investment Summary
June 30, 2021
Current Prior Quarter Prior Year
Description 6/30/2021 3/31/2021 6/30/2020
Cash Balances on Hand in Banks $ 16,618,602 $ 13,611 ,017 $ 14,735,513
Local Government Investment Pool (LGIP) 57,600,578 52,490,818 49,414,612
Investment Portfolio 44,000,000 36,000,000 45,789,000
Total Investments 101 ,600,578 88,490,818 95,203,612
Total Cash and Investments $ 118,219,180 $ 102,101 ,835 $ 109,939,125
Beg Balance Purchases Interest Maturities, Calls End Balance
Summary of Investment Activity 3/31/2021 & Deposits Reinvested & Withdrawals 6/30/2021
Local Government Investment Pool (LGIP) $ 52,490,818 $ 23,097,740 $ 12,020 $ (18,000,000) $ 57,600,578
Investment Portfolio 36,000,000 10,000,000 - (2,000,000) 44,000,000
Total Investments $ 88,490,818 $ 33,097,740 $ 12,020 $ (20,000,000) $ 101 ,600,578
Page 1 of 7 2021 Q2 TSO spreadsheet 05-01-2021
City of Yakima
Distribution of Cash and Investments as of 6/30/2021
Depository Banks,
$16,618,602 , 14%
Investment
Portfolio,
44,000,000 , 37%
Local Government
Investment Pool,
$57,600,578 , 49%
Page 2 of 7
City of Yakima
Investment Portfolio - Inventory by Agency
June 30, 2021
Expected Days to Call
Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch
US T 1543 912828WY2 1,000,000 1,009,453 2.250 1.660 12/11/19 7/31/21 212 1,001,827 NC Aaa AA+ AAA
FHLMC 1539 3137EAEC9 1,000,000 991,002 1.125 1.650 11/14/19 8/12/21 224 1,001,237 NC Aaa AA+ AAA
FFCB 1527 3133EKP67 1,000,000 996,900 1.625 1.780 9/17/19 9/17/21 260 1,003,451 NC Aaa AA+ AAA
USB 1515 91159HHP8 1,000,000 997,300 2.625 2.723 3/18/19 1/24/22 389 1,011,651 1X Al A+ AA-
MSFT 1512 594918BW3 1,000,000 996,920 2.400 2.575 3/15/19 2/6/22 402 1,011,857 NC Aaa AAA AA+
FHLB 1556 313378CR0 1,000,000 1,032,367 2.250 0.630 3/6/20 3/11/22 435 1,014,964 NC Aaa AA+ NA
FNMA 1550 3135G0T45 1,000,000 1,009,506 1.875 1.422 2/14/20 4/5/22 460 1,013,384 NC Aaa AA+ AAA
FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 501 1,018,533 NC Aaa AA+ AAA
FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 517 1,020,392 NC Aaa AA+ AAA
FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 617 1,035,567 Amer Aaa AA+ AA+
FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 656 1,028,518 NC Aaa AA+ AAA
FFCB 1551 3133EA7E2 1,000,000 1,014,130 1.960 1.430 2/14/20 11/7/22 676 1,024,619 NC Aaa AA+ AAA
FHLB 1544 313381BR5 1,000,000 1,006,250 1.875 1.660 12/11/19 12/9/22 708 1,024,492 NC Aaa AA+ AAA
FNMA 1541 3135GOT94 1,000,000 1,023,490 2.375 1.610 11/20/19 1/19/23 749 1,033,321 NC Aaa AA+ AAA
FFCB 1557 3133EG5Y7 1,000,000 1,045,401 2.230 0.650 3/6/20 2/2/23 763 1,032,691 NC Aaa AA+ AAA
AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 853 1,037,496 NC AA1 AA+ -
WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 907 1,058,268 NC Aa2 AA AA
FFCB 1561 3133EMWL2 2,000,000 2,000,314 0.200 0.193 4/19/21 7/19/23 930 1,996,186 NC Aaa AA+ AAA
US T 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 973 1,053,125 NC Aaa AA+ AAA
FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 992 1,060,742 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 2,116,170 NC Aaa AA+ AAA
FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 1,035 1,029,444 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 2,128,138 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 1,031,858 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 1,054,828 NC Aaa AA+ AAA
US T 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 1,186 2,093,516 NC Aaa AA+ AAA
US T 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 1,200 998,594 NC Aaa NA AAA
US T 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 1,216 1,051,328 NC Aaa NA AAA
US T 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 1,247 2,090,156 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 1,048,125 NC NA NA NA
US T 1566 91282CCG4 1,000,000 994,102 0.250 0.451 6/30/21 6/15/24 1,262 993,828 NC Aaa NA AAA
US T 1563 9128282N91 2,000,000 2,112,813 1.125 0.352 5/16/21 7/31/24 1,308 2,100,624 NC Aaa NA AAA
US T 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 1,339 1,043,203 NC Aaa NA AAA
US T 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 1,369 2,063,360 NC Aaa NA AAA
FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 1,408 1,035,487 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 1,073,366 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 1,038,901 NC NA NA NA
Subtotal 37 44,000,000 45,053,548 Avg. 1.96% 45,473,247
LGIP LGIP NA 57,600,578 57,600,578 0.300 0.300 NA NA 1 57,600,578 NC
(Grand Totals $ 101,600,578 $ 102,654,127 1.04% 408 $ 103,073,825
Page 3 of 7 2021 Q2 TSO spreadsheet 05-01-2021
City of Yakima
Investment Portfolio by Issuer at 6/30/2021
FAM CA, 5,000,000, 5%
US T, 14,000,000, 14%
FHLB , 6,000,000, 6%
FNMA, 3,000,000, 3%
FHLMC, 1,000,000, 1%
AAPL, 1,000,000, 1%
MS FT, 1,000,000, 1%
USB, 1,000,000, 1%
FFCB, 11,000,000, 11% W MT, 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, 57,600,578, 56%
Page 4 of 7 2021 Q2 TSO spreadsheet 05-01-2021
Page 5 of 7
City of Yakima
Investment Portfolio Maturity Distribution at 6/30/2021
$5,000,000
$4,500,00o Diversifying by maturity
reduces the re-investment risk
$4,000,00o the city is subject to in any
given month when an
investment matures and the
$3,500,000
principal is reinvested at rates
available at that moment.
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000111111
$o 1111
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Napo
P9 Oe` gi� P v ,04 06' O l;:f vit< Ozb OL L0` Qz5'La of'Ly
PQ 1J
Page 5 of 7 2021 Q2 TSO spreadsheet 05-01-2021
10
City of Yakima
Investment Portfolio- Detail of Activity
June 30, 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 1561 - 2,000,000 - 2,000,000
FFCB Total 10,000,000 2,000,000 (1,000,000) 11,000,000
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 6,000,000 - - 6,000,000
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 1553 1,000,000 - - 1,000,000
US Treasury 1559 2,000,000 - 2,000,000
US Treasury 1562 - 2,000,000 - 2,000,000
US Treasury 1563 - 2,000,000 - 2,000,000
US Treasury 1564 2,000,000 2,000,000
US Treasury 1565 1,000,000 1,000,000
US Treasury 1566 1,000,000 1,000,000
US Treasury 6,000,000 8,000,000 - 14,000,000
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 - (1,000,000) 4,000,000
Subtotal 36,000,000 10,000,000 (2,000,000) 44,000,000
Other Investments - - - -
LGIP(State Pool) LGIP 52,490,818 23,109,760 (18,000,000) 57,600,578
Other Investment Totals 52,490,818 23,109,760 (18,000,000) 57,600,578
(Grand Totals $ 88,490,818 $ 33,109,760 $ (20,000,000) $ 101,600,578
Page 6 of 7 2021 Q2 TSO spreadsheet 05-01-2021
City of Yakima
Long Tenn Debt Schedule-by Project Group
June 30,2021
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 2,600,827
6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 4,595,000
9/24/2018 6/1/2035 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,976,941
9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,928,271
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 39,130,101
Certificate of Participation-State of Washington
3/19/2013 6/1/2023 Fire Apparatus One truck 310,414 74,652
9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,863 614,757
7/21/2020 6/1/2035 Energy Project 2020 Energy Efficiency Project(lighting) 1,415,000 1,355,000
9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 845,784
Subtotal Certificates of Participation 4,492,178 2,890,193
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 1,155,702
5/6/2010 6/1/2034 41000030-0 2010 Railroad Grade Separation 1,149,841 908,197
6/17/2014 5/1/2034 Comm Center Move City portion of County GO Bonds 1,716,500 1,250,000
9/30/2015 6/1/2023 '15 Yak Co SIED-21st Ave/Airport 2015 Yakima Co SIED Loan-21st Ave/Airport 307,000 112,062
6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 582,509
11/21/2017 6/1/2024 '17 Yak Co SIED-YV Brewing Project 2017 Yakima Co SIED Loan-YV Brewing Project 61,580 39,901
7/17/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 427,216
6/1/2001 6/1/2021 PW-01-691-071 2001 Fruitavale Neighborhood Sewer 1,466,250 -
9/1/2003 6/1/2023 PW-03-691-027 2003 Naches WTP Improvements 2,694,500 269,450
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 2,307,000 496,983
4/30/2007 6/1/2027 PW-07-962-019 2007 Ultra Violet Disinfection 2,300,000 728,333
4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 848,042
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 2,690,791
10/11/2012 6/1/2037 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,301,435
8/5/2013 6/1/2032 PC-13-961-074 2013 Automated Reading System 5,000,000 2,894,737
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 17,199,467
°Grand Total 130,673,056 67,929,760 II
Page 7 of 7 2021 02 ISO spreadsheet 05-01-2021
12
FINANCE
Committee Review of Investment Rationale
Date: April 15, 2021
Investment# 2021-1561 is a 2.25-year Federal Farm Credit Bank (FFCB), face value
$2,000,000, maturing July 19, 2023, 0.20% coupon at 100.015 to yield 0.193%. This
trade settles April 19, 2021 with Vining Sparks, US Bank Safekeeping, replacing one
$1,000,000 April maturity in April and a May 2021 $1,000,000 called 1 month early.
Liquidity: At March 31st, month-end, Key Bank checking account balance was $7.5
million (target minimum is $3 Million), US Bank checking balance was $3.7 million and
investment portfolio was $36.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $47.9 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 0.19%. This investment is 9 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-day yield 0.09916% www.secureaccess.wa.gov
2-year Treasury 0.1600% Treasury.gov _
3-year Treasury 0.3500% Treasury.gov
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 13.0% 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 0.16% the 3-year at 0.35%, and the 5-year at 0.87%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 f f 2az/
City Manager: Date Lfl (471' 1
13
Nimor A
FINANCE
Committee Review of Investment Rationale
Date: April 23, 2021
Investment # 2021-1562 is a 3-year US Treasury (UST), face value $2,000,000,
maturing May 19, 2024, 2.00% coupon at 105-05 to yield 0.325%. This trade settles
April 19, 2021 with Wedbush Securities, US Bank Safekeeping, replacing two of the
several $1,000,000 maturities called during 2020.
Liquidity: At March 31st, month-end, Key Bank checking account balance was $7.5
million (target minimum is $3 Million), US Bank checking balance was $3.7 million and
investment portfolio was $36.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $47.9 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal government, equivalent to Aaa/AA+
rating by Moody's and S&P.
Yield. Yield is 0.32%. This investment is 21 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-day yield 0.096215% www.secureaccess.wa.gov
3-year corporate Unavailable in AA Treasury.gov
3-year Agency 0.3100% Broker daily runs
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 9.0% 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 0.16% the 3-year at 0.32%, and the 5-year at 0.81%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 12 7/2❑z,
City Manager: Date '- 1 al laves'
14
l i�
FINANCE
Committee Review of Investment Rationale
Date: May 18, 2021
Investment # 2021-1563 is a 3-year US Treasury (UST), face value $2,000,000,
maturing July 31, 2024, 2.125% coupon at 105-20 to yield 0.351%. This trade settles
May 19, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevated
LGIP position caused by maturities called during 2020.
Liquidity: At April 30th, month-end, Key Bank checking account balance was $4.8 million
(target minimum is $3 Million), US Bank checking balance was $6.8 million and
investment portfolio was $38.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $45.9 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal government, equivalent to Aaa/AA+
rating by Moody's and S&P.
Yield. Yield is 0.35%. This investment is 27 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-day yield 0.080712% www.secureaccess.wa.gov
3-year corporate Unavailable in AA Treasury.gov
3-year Agency 0.3500% Broker daily runs
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 10.8% 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 0.04%, the 2-
year at 0.16% the 3-year at 0.34%, and the 5-year at 0.84%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 / �z(
•
City Manager: Date 5/21 (Z.OL1
15
riv/A4Cr&ser
FINANCE
Committee Review of Investment Rationale
Date: June 7, 2021
Investment # 2021-1564 is a 3-year US Treasury (UST), face value $2,000,000,
maturing September 30, 2024, 1.5% coupon at 103-237/8 to yield 0.36%. This trade
settles June 8, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our
elevated LGIP position caused by maturities called during 2020.
Liquidity: At May 31st, month-end, Key Bank checking account balance was $7.5 million
(target minimum is $3 Million), US Bank checking balance was $8.6 million and
investment portfolio was $40.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $66.0 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal government, equivalent to Aaa/AA+
rating by Moody's and S&P.
Yield. Yield is 0.36%. This investment is 29 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-day yield 0.069319% www.secureaccess.wa.gov
3-year corporate Unavailable in AA Treasury.gov
3-year Agency FNMA , 0.3100% Broker daily runs
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 11.1% 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 0.04%, the 2-
year at 0.16% the 3-year at 0.34%, and the 5-year at 0.84%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 V7/2/o
z
I r
City Manager: Date e( PO 91
-
16
' ' •
f.k
•
FINANCE
Committee Review of Investment Rationale
Date: June 29, 2021
Investment # 2021-1565 is a 3-year US Treasury (UST), face value $1,000,000,
maturing April 15, 2024, 0.38% coupon at 99-287/8 to yield 0.41%. This trade settles
June 30, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevated
LGIP position caused by maturities called during 2020.
Liquidity: At May 31st, month-end, Key Bank checking account balance was $7.5 million
(target minimum is $3 Million), US Bank checking balance was $8.6 million and
investment portfolio was $40.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $66.0 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal government, equivalent to Aaa/AA+
rating by Moody's and S&P.
Yield. Yield is 0.41%. This investment is 34 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-day yield 0.068949% www.secureaccess.wa.gov
3-year corporate Unavailable in AA Treasury.gov
3-year Agency FNMA 0.4100% Broker daily runs
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 13% of total portfolio.
This purchase added to a maturity date previously covered in the city's laddered portfolio.
Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.08%, the 2-
year at 0.27% the 3-year at 0.47%, and the 5-year at 0.89%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 6 Z
City Manager: Date n I ( �
g �
17
4 ((r1114
FINANCE
Committee Review of Investment Rationale
Date: June 29, 2021
Investment # 2021-1566 is a 3-year US Treasury (UST), face value $1,000,000,
maturing June 15, 2024, 0.25% coupon at 99-13 '/e to yield 0.45%. This trade settles
June 30, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevated
LGIP position caused by maturities called during 2020.
Liquidity: At May 31st, month-end, Key Bank checking account balance was $7.5 million
(target minimum is $3 Million), US Bank checking balance was $8.6 million and
investment portfolio was $40.0 million (target is $64 million for Treasuries, Corporates
and Agencies). Current LGIP balance was $66.0 million (target minimum is $5 million).
Safety: This purchase is a debt issue of the Federal government, equivalent to Aaa/AA+
rating by Moody's and S&P.
Yield. Yield is 0.45%. This investment is 38 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-day yield 0.068949% www.secureaccess.wa.gov
3-year corporate Unavailable in AA Treasury.gov
3-year Agency FNMA 0.4100% Broker daily runs
Callability. This investment is not callable (a bullet).
Diversification. This purchase brings this issuer to 13% of total portfolio.
This purchase added to a maturity date previously covered in the city's laddered portfolio.
Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.08%, the 2-
year at 0.27% the 3-year at 0.47%, and the 5-year at 0.89%. The Federal Reserve Bank
has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling
maturity gaps in a shortened 3-year ladder, we 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 2
City Manager: Date