HomeMy WebLinkAbout03/18/2014 05B 2013 4th Quarter Treasury ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 3/18/2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
4th Quarter 2013 Treasury Report.
Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
The Treasury Report for the fourth 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
Interfund Borrowings and Investments Schedule
Resolution: Ordinance:
Other (Specify): Report
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
City Manager
RECOMMENDATION:
Accept Report
ATTACHMENTS:
Description Upload Date Type
4th Qtr 2013 Treasury Narrative 3/10/2014 Cover Memo
4th Qtr 2013 Treasury Reports 3/10/2014 1Baollcup Mate HI all
Memorandum
To: The Honorable Mayor and Members of City Council
From: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
Date: March 11, 2014
Re: 2013 — 4th 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 of funds
invested in the Local Government Investment Pool (LGIP) managed by the State Treasurer,
and currently, a savings account held by a local financial institution.
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 12/31/13
remained flat at approximately 1 %.
Short term rates remain low. The LGIP has not fluctuated much above or below 0.12% for two
straight quarters. Due to the minimal rate of return, only a small emergency balance is kept in the
Pool. More cash is being kept on hand in the City's operations bank accounts because such
balances currently earn a higher rate than the LGIP and to transfer funds in and out adds costs
which diminishes the net return even further.
Interest rates bumped up slightly at year end only to dive back to their 2013 lows immediately in
January. Most of our earlier investments earning above market rates have been called or refunded.
The result is reduced portfolio liquidity compared to what we have experienced during the past
three years. More of the portfolio is likely to reach maturity regardless of call feature. While liquidity
is not a problem for the City, the situation calls for a more conservative approach to tying up cash
balances than in recent times. Cash balances are being kept more liquid for the time being.
The City's Bonded Debt Schedule
A number of our debt agreements call for December principal payments so a lot of activity is
reflected in the Bonded Debt schedule.
The final payment for the R.A. Zais Law and Justice Center was made in December. Principal
payments on the new 2013 Fire debt (one apparatus, 70 air packs) and Police debt (74 vehicles)
will start next year.
It is anticipated that 2014 will see significant borrowing activity as the City begins several street
refurbishment projects and the Wastewater Utility funds current and new system projects. The
street debt payments will be funded by part of the $2 million annual set aside approved by voters for
street improvements.
March 11, 2014
Interfund Borrowings and Investments
The most significant item to note is the payoff of the interfund loan made by Equipment Rental to
the Irrigation Capital Fund. The cost for this interfund loan of $1.433 million amounted to less than
$10,000 in interest over a 16 month period with no other tangible costs. A bond issue would have
generated 4 or 5 times that amount in issuance fees and interest costs would be ongoing for years
at a much higher rate. Although the Irrigation project is not completed, it is anticipated that such
interfund borrowing will continue to keep the City out of the expensive debt markets with regard to
an Irrigation debt issue as the Department schedules its work over a period of several years with a
"pay-as-you-go" strategy.
As per the City's Interfund Loan Program, adopted earlier this year, the General Fund will cover
negative cash from another fund for up to one calendar quarter before it begins to charge interest.
There were no funds in a negative cash position at the end of 2013.
2
City of Yakima
Cash and Investment Summary
December 31, 2013
Description
Qty
Par
Percent of Average
Book Portfolio Yield Q3 '13
Average
Yield Q4 '13
Cash Balances on Hand and in Banks
Local Government Investment Pool (LGIP)
Federal Agency Coupon and Discount
Other Investments
NA
1 $ 4,317,677
19 42,996,000
2 3,231,822
$ 14,336,724
4,317,677
42,020,861
3,584,439
NA
9%
84%
7°/0
NA
0.12%
1.21%
0.51%
NA
0.12%
1.17%
0.58%
Total Invested
22 $ 50,545,499
$ 49,922,978 100%
1.03%
1.04%
Summary of Investment Activity
Book Balance
10/1/2013
Purchases
& Deposits
Interest Maturities, Calls Book Balance
Reinvested & Withdrawals 12/31/2013
Local Government Investment Pool (LGIP)
Federal Agency Coupon and Discount
Other Investments
$ 4,316,336 $ - $ 1,341 $
40,330,047 4,980,514
3,571,793
12,646
- $ 4,317,677
3,289,700 42,020,861
- 3,584,439
Totals
$ 48,218,176 $ 4,980,514 $ 13,988 $ 3,289,700 $ 49,922,978
Page 1 of 5
PDFConvert.3795.1.TSO_Q4_2014.xlsx
City of Yakima
Investment Portfolio - Inventory by Agency
December 31, 2013
Agency Inv#
Expected
Call Most
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 11/25/13 Amer 9/25/18
FFCB Totals and Avera 2,000,000 2,000,000
1.290
Federal Home Loan Bank
FHLB 1466 2,000,000 1,998,940 1.150 1.160 7/25/18 2/6/13 10/25/13 Qrty 7/25/18
FHLB 1467 2,000,000 1,994,456 0.850 0.910 10/30/17 2/6/13 10/30/13 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 12/20/13 Qrty 6/20/17
FHLB 1474 3,000,000 2,995,014 0.750 0.917 4/17/17 12/3/13 4/17/14 Amer 4/17/16
FHLB Totals and Avera 9,000,000 8,988,410 1.032
Federal Home Loan Mortgage Corporation
FHLMC 1453 2,000,000 2,001,920 1.300
FHLMC 1463 3,000,000 3,000,000 1.000
1.280 1/30/17 01/30/12 1/30/14 Qrty 1/30/17
1.000 1/17/18 10/17/12 10/17/14 lx 1/17/18
FHLMC Totals and Ave 5,000,000 5,001,920 1.112
Federal National Management Association
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 lx 9/27/16
FNMA 1468 2,000,000 2,000,000 1.200 1.200 4/18/18 4/18/13 1/18/14 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 1472 2,000,000 2,000,000 1.700 1.700 7/10/18 7/10/13 7/10/14 Qrty 7/10/14
FNMA 1475 2,000,000 1,985,500 1.300 1.600 7/30/18 12/13/13 4/30/14 Qrty 10/30/15
FNMA Totals and Aver 16,000,000 15,722,518 1.217
Financing Corporation
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 10,996,000 10,308,013 1.218
Other Investments
LGIP LGIP
YFED YFED
CNTY 1442
CNTY 1471
YF -CD 1447
4,317,677 4,317,677 0.127 0.127 NA NA NA NC NA
174,349 174,349 0.400 0.400 NA 7/1/13 NA NC NA
500,000 565,490 5.000 1.500 7/1/15 8/19/11 7/1/15 NC 7/1/15
2,295,000 2,582,127 5.000 1.000 9/1/16 6/24/13 9/1/16 NC 9/1/16
262,473 262,473 2.050 2.100 3/30/16 8/31/11 2/28/15 NC 2/28/15
Other Totals and Avera 7,549,499 7,902,117
0.582
Coupon Steps
Coupon
Steps
Investment#
Rate up to:
2013
2016
2016
2017
2017
1470
June, Dec 20
1.000
1.125
1250%
1500%
2500%
Page 2 of 5
PDFC onvert.3795.1.TS0_Q4_2014.xlsx
City of Yakima
Investment Portfolio - Detail of Activity
Quarter Ending December 31, 2013
Agency
Yield Beginning Additions and Calls and Ending Date of
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
FHLB 1466 1.160 2,000,000
FHLB 1467 0.910 2,000,000
FHLB 1470 1.200 2,000,000
FHLB 1474 0.917
3,000,000
(2,000,000)
- 11/25/13
2,000,000
2,000,000
2,000,000
3,000,000 12/3/13
FHLB Totals 8,000,000 3,000,000 (2,000,000) 9,000,000
Federal Home Loan Mortgage Corporation
FHLMC 1453 1.280 2,000,000 2,000,000
FHLMC 1463 1.000 3,000,000 3,000,000
FHLMC Totals
5,000,000 5,000,000
Federal National Management Association
FNMA 1452 0.850 1,000,000
FNMA 1460 1.100 5,000,000
FNMA 1461 0.900 2,000,000
FNMA 1468 1.200 2,000,000
FNMA 1469 1.050 3,000,000
FNMA 1472 1.700 2,000,000
FNMA 1475 1.600
2,000,000
(1,000,000)
- 12/5/13
5,000,000
2,000,000
2,000,000
3,000,000
2,000,000
2,000,000 12/13/13
FNMA Totals 15,000,000 2,000,000 (1,000,000) 16,000,000
Financing Corporation
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 1.050 3,630,000 3,630,000
FICO Totals
10,996,000
10,996,000
Other Investments
LGIP (State Pool) LGIP 0.120 4,316,336
Yakima Federal Savings YFED 0.400 174,176
Grays County Bonds 1442 1.500 500,000
Cowlitz County Bonds 1471 1.000 2,295,000
Yakima Federal CD 1447 2.050 257,074
1,341
174
5,399
4,317,677
174,349
500,000
2,295,000
262,473
Other Investment Totals
7,542,585
6,914
7,549,499
Grand Totals $ 48,538,585 $ 5,006,914 $ (3,000,000) $ 50,545,499
Page 3 of 5
PDFConvert.3795.1.TSO_Q4_2014.xlsx
City of Yakima
Bonded Debt Schedule - by Project Group
Quarter Ending December 31, 2013
General Obligation Bonds
9/7/2004 11/1/2019
5/8/2007 5/1/2026
8/28/2009 12/1/2018
8/28/2009 12/1/2024
8/28/2009 12/1/2032
6/17/2003 12/1/2023
6/17/2003 12/1/2013
9/7/2004 12/1/2014
8/28/2008 12/1/2021
8/28/2008 5/1/2022
8/28/2008 12/1/2019
5/8/2007 5/1/2022
5/8/2007 5/1/2017
6/20/2013 6/20/2028
12/1/2005 2/1/2015
PFD Convention Center II
PFD Convention Center III
PFD Capitol Theatre
PFD Capitol Theatre
PFD Capitol Theatre
Sundome Expansion
Law and Justice Center
Fire Station
Fire Apparatus
Fire Station
Infrastructure Projects
Downtown Futures
River Road
Street Project Demonstration
Parks and Recreation
Refunded 1996 issue
Partial refunding of 2002 issue
Tax exempt portion
Build America Bonds (Taxable)
Build America Bonds (Taxable)
Deferred Interest -Maturity $2.5M
Refunded 1994 issue
Ladder Truck
Remodel Facility
Ped crossing, street, infrastructure
Renovate downtown improvements
River Road improvements
Various City street improvements
Parks improvements
4,175,000
4,910,000
2,055,000
1,755,000
3,225,000
1,430,528
4,155,000
2,300,000
760,000
815,000
2,190,000
1,490,000
1,765,000
5,000,000
755,000
2,170,000
4,595,000
1,130,000
1,755,000
3,225,000
743,120
0
285,000
500,000
550,000
1,270,000
1,000,000
800,000
4,854,959
175,000
330,000
0
195,000
0
0
98,534
500,000
275,000
55,000
0
185,000
0
0
73,832
85,000
Subtotal General Obligation Bonds
$36,780,528
$23,053,079 $1,797,366
Certificate of Participation - State of Washington
8/22/2013
8/22/2013
6/1/2011
3/19/2013
6/1/2019
6/1/2019
12/1/2020
7/1/2023
Police Vehicles
Fire Air Packs
Fire Apparatus
Fire Apparatus
74 Take-home vehicles
70 Air Packs
Two trucks purchased
One truck
$4,173,190
$459,602
$576,847
$310,414
$4,173,190
$459,602
$420,411
$310,414
$0
$0
$52,115
$0
Subtotal Certificates of Participation
$5,520,054
$5,363,618
$52,115
Revenue Bonds
12/2/2003
5/31/2012
6/5/2008
6/5/2008
9/4/2004
11/1/2014 Wastewater
11/1/2023 Wastewater
11/1/2027 Wastewater
11/1/2018 Water
9/1/1934 Irrigation
Refunded 2003 $10,155,000 issue
Refunded 1998 issue
$7,390,000
9,400,000
5,440,000
1,883,951
5,215,000
$255,000
9,355,000
4,330,000
1,030,000
4,220,000
$805,000
0
225,000
180,000
0
Subtotal Revenue Bonds
$29,328,951
$19,190,000 $1,210,000
Grand Total
$71,629,533
$47,606,697 $3,059,481
Page 4 of 5 PDFConvert.3795.1.TSO_Q4_2014.xlsx
City of Yakima
Interfund Borrowings and Investments
Quarter Ending December 31, 2013
Description
Original Beginning Ending
Balance Balance Issued Retired Balance
Investment Held by:
Local Improvement District Bonds/Notes $ 1,432,509 $ 508,500
Irrigation Capital Fund 514,000
REET 1 - Upper Kiwanis Park 600,000 524,609
$ 508,500 Equipment Rental
Equipment Rental
25,273 499,336 Equipment Rental
Funds in Negative Cash Position at Quarter End
Ending Cash
Balance
Cash Extended by:
There were no funds in a negative cash position at year end.
Page 5 of 5
PDFConvert.3795.1.TSO_Q4_2014.xlsx