HomeMy WebLinkAbout06/03/2014 05B 1st Quarter 2014 Treasury ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.B.
For Meeting of: June 03, 2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
1st Quarter 2014 Treasury Report
Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
The Treasury Report for the first quarter of 2014 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
• Schdedule of Interfund Borrowings and Investments
Resolution:
Other (Specify): Report
Contract: Contract Term:
Start Date: End Date:
Amount:
Ordinance:
Item Budgeted:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
Public Trust and Accountability
City Manager
RECOMMENDATION:
Accept report.
ATTACHMENTS:
Description
Treasury Report Narrative
TSO 1st Qtr 2014
Upload Date
5/2 /2014
5/27/2014
Type
Cover Memo
Cover Memo
Memorandum
To: The Honorable Mayor and Members of City Council
From: Cindy Epperson, Director of Finance and Budget
Tara Lewis, Financial Services Manager
Date: May 29, 2014
Re: 2014 – 1st 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 3/31/14 increased
slightly over year end by 0.07% going from 1.03% to 1.10% average yield.
Short term rates remain low and have dipped even lower subsequent to quarter end. The LGIP
averaged 0.11% and has since quarter -end reached a new low of .08%. 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.
Longer term interest rates have started to climb ever so slightly bringing hope that these record low
rates may be turning upward. However, due to liquidity needs and prudent policies, the City does
not invest funds out longer than five years except in extraordinary circumstances—the terms on
investments with improving rates are still outside the time parameters contained in our investment
policy.
The City's Bonded Debt Schedule
Most of the City's debt calls for December principal payments which makes for a rather uneventful
report in the first quarter. Our Street Demonstration Bond from 2013 has monthly payments and so
the only activity on the entire report is the $74,141 paid on that debt during the first quarter.
The final payment for the R.A. Zais Law and Justice Center was made in December and so that
debt has fallen off the schedule and back into our available debt limit. Principal payments on the
new 2013 Fire debt (one apparatus, 70 air packs) and Police debt (74 vehicles) will start this year.
May 29, 2014
The Limited Tax General Obligation bond issue of $13.14 million for the current street project netted
the City $14.7 million due to fabulous timing in the market place aided by an improved debt rating
granted the City by Standard and Poors. Principal payments on this new debt will begin in June
2015.
Interfund Borrowings and Investments
REET continues to pay monthly payments to the Equipment Rental fund for the Kiwanis Park
interfund loan. There were no funds in a chronic negative cash position that would warrant a new
policy -driven loan.
2
City of Yakima
Cash and Investment Summary
March 31, 2014
Description
Qty
Par
Percent of Average
Book Portfolio Yield Q4 '13
Average
Yield Q1 '14
Cash Balances on Hand and in Banks
Local Government Investment Pool (LGIP)
Federal Agency Coupon and Discount
Other Investments
NA
1 $ 4,318,850
19 43,396,000
2 3,231,996
$ 6,525,640
4,318,850
42,384,039
3,584,613
NA
9%
84%
7°/0
NA
0.12%
1.17%
0.58%
NA
0.11%
1.24%
0.58%
Total Invested
22 $ 50,946,846
$ 50,287,502 100%
1.03%
1.10%
Summary of Investment Activity
Book Balance
1/1/2014
Purchases
& Deposits
Interest Maturities, Calls Book Balance
Reinvested & Withdrawals 3/31/2014
Local Government Investment Pool (LGIP)
Federal Agency Coupon and Discount
Other Investments
$ 4,317,677 $
42,020,861 4,373,408
3,584,439
- $ 1,172 $
174
- $ 4,318,850
4,010,230 42,384,039
- 3,584,613
Totals
$ 49,922,978 $ 4,373,408 $ 1,346 $ 4,010,230 $ 50,287,502
Page 1 of 5
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Page 2 of 5
City of Yakima
Investment Portfolio - Inventory by Agency
March 31, 2014
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 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 Ave 3,000,000 3,000,000 1.000
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 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 1476 2,000,000 1,978,940 1.640 1.842 9/26/19 3/19/14 6/26/14 Qrty 9/26/15
FNMA 1477 2,400,000 2,394,468 1.200 1.777 2/22/18 3/19/14 5/22/14 Qrty 2/22/15
FNMA Totals and Aver 18,400,000 18,087,616 1.395
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 1473
CNTY 1442
CNTY 1471
YF -CD 1447
4,318,850 4,318,850 0.114 0.127 NA NA NA NC NA
174,523 174,523 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 7,550,846 7,903,463
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%
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City of Yakima
Investment Portfolio - Detail of Activity
Quarter Ending March 31, 2014
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 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
FHLB 1474 0.917 3,000,000 3,000,000
FHLB Totals
9,000,000 9,000,000
Federal Home Loan Mortgage Corporation
FHLMC 1453 1.280 2,000,000
FHLMC 1463 1.000 3,000,000
(2,000,000)
- 3/27/14
3,000,000
FHLMC Totals
5,000,000 (2,000,000) 3,000,000
Federal National Management Association
FNMA 1460 1.100 5,000,000 5,000,000
FNMA 1461 0.900 2,000,000 (2,000,000) - 1/30/14
FNMA 1468 1.200 2,000,000 2,000,000
FNMA 1469 1.050 3,000,000 3,000,000
FNMA 1472 1.700 2,000,000 2,000,000
FNMA 1475 1.600 2,000,000 2,000,000
FNMA 1476 1.842 2,000,000 2,000,000 3/19/14
FNMA 1477 1.777 2,400,000 2,400,000 3/19/14
FNMA Totals 16,000,000 4,400,000 (2,000,000) 18,400,000
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 4,317,677
Yakima Federal Savings YFED 0.400 174,349
Grays County Bonds 1442 1.500 500,000
Cowlitz County Bonds 1471 1.000 2,295,000
Yakima Federal CD 1447 2.050 262,473
1,172
174
4,318,850
174,523
500,000
2,295,000
262,473
Other Investment Totals
7,549,499
1,346
7,550,846
Grand Totals $ 50,545,499 $ 4,401,346 $ (4,000,000) $ 50,946,846
Page 3 of 5
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City of Yakima
Bonded Debt Schedule - by Project Group
Quarter Ending March 31, 2014
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
9/7/2004 12/1/2014
8/28/2008 12/1/2021
5/8/2007 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
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
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
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
285,000
500,000
550,000
1,270,000
1,000,000
800,000
4,780,818
175,000
74,141
Subtotal General Obligation Bonds
$32,625,528
$22,978,938
$74,141
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
Subtotal Certificates of Participation
$5,520,054
$5,363,618
$0
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
Subtotal Revenue Bonds
$29,328,951
$19,190,000
$0
Grand Total
$67,474,533
$47,532,556
$74,141
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City of Yakima
Interfund Borrowings and Investments
Quarter Ending March 31, 2014
Description
Original Beginning Ending
Balance Balance Issued Retired Balance
Investment Held by:
Local Improvement District Bonds/Notes $ 1,432,509 $ 508,500
REET 1 - Upper Kiwanis Park
600,000 499,336
$ 508,500 Equipment Rental
25,385 473,951 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 as of report date.
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