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Home My WebLink About02/01/2022 06.B. 2021 4th Quarter Treasury Report °F`Y�'`,1`1°''a • l'41 rr 11 i i�O enc u nrry 1 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.B. For Meeting of: February 1, 2022 ITEM TITLE: 2021 4th Quarter Treasury Report SUBMITTED BY: Jennifer Ferrer-Santa Ines, Director of Finance and Budget SUMMARY EXPLANATION: The Treasury Report for the fourth quarter of 2021 is attached and consists of the following: 4th Quarter Treasurer's Report • Cash and Investments • Long term Debt • I nterfund Borrowings ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description Upload Date Type 1/10/2022 Corer Memo 2 r...Y i,.... ...., :,.,s 40)1 .....,>] _:_--, FINANCE Date: January 5, 2022 WPTA To: Mayor and City Council ; CERTIFICATE OFEXCELLENCE q Imesunent VnIIq Bob Harrison, City Manager — crrY OF YAKIMA February 2019 From: Jennifer Ferrer-Santa Ines, Director of Finance �.T,b.., ,p_-°r° -..,�..• ,•M and Budget *= r~. Re: 2021 -4th 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 $132.0 million: $19.8 million in depository banks, $62.6 million in the State Pool, and $50.0 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 December 2021 yearend balance is higher than prior years 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 $20,000,000 $0 l0 n n n n W 00 00 00 01 01 01 01 O O O O c-I e•-I e•-I e•-I 1-I 1-I 1--I 1--I 1-I 1-I 1--I 1--I 1-I 1-I 1 I 1--I 1-I N N N N N N N N U i C Q U i C Q U i C Q U i C Q U i C Q U o 2 - 1n o 2 - 1n o 2 - 1n o 2 - 1n o 2 - 1n o 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: • 1514 $1 ,000,000 US Bancorp. Called 12/23/2021 Purchases: During the last quarter, the following were purchased: • 1569 $1 ,000,000 US Treasury to mature 9/30/2025 • 1570 $1 ,000,000 FFCB to mature 04/13/2023 • 1571 $1 ,000,000 US Treasury to mature 06/30/2025 • 1572 $2,000,000 US Treasury to mature 02/28/2025 • 1573 $1 ,000,000 FNMA to mature 02/05/2024 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: .86% LGIP State Pool 30-day yield: 0.08% Weighted average maturity of City investments, excluding LGIP: 313 days Weighted average maturity of LGIP State Pool 30-day yield: 33 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 F/N4 NCE Current Rates.As of December 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 0.39% and the 5-year Treasury at 1.26%was 87 basis points. The 30-day yield of the State Pool was at 0.08%,with a 33-day avg. maturity and expected to stay low. Economic Outlook. The Federal Reserve had lowered the rates in March 2020 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 investments are not typically actively traded, meaning that no attempt to"buy low and sell high" or"time the market" is made. Investments purchased with the intent of providing investment income are intended to be held to maturity, relying on following a prudent course of action for income rather than predicting market direction. Actual % LGIP 62,617,278 55.60% Treasuries 21,000,000 18.65% Agencies 26,000,000 23.09% Corporates 3,000,000 2.66% 112,617,278 100.00% Debt Activity All debt paymentswere 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 December 31 , 2021 Current Prior Quarter Prior Year Description 12/31/2021 9/30/2021 12/31/2020 Cash Balances on Hand in Banks $ 19,806,165 $ 15,367,474 $ 14,699,272 Local Government Investment Pool (LGIP) 62,617,278 57,617,282 64,472,094 Investment Portfolio 50,000,000 45,000,000 33,667,000 Total Investments 112,617,278 102,617,282 98,139,094 Total Cash and Investments $ 132,423,443 $ 117,984,756 $ 112,838,366 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 9/30/2021 & Deposits Reinvested & Withdrawals 12/31/2021 Local Government Investment Pool (LGIP) $ 57,617,282 $ 11 ,000,000 $ - $ (6,000,004) $ 62,617,278 Investment Portfolio 45,000,000 6,000,000 - (1 ,000,000) 50,000,000 Total Investments $ 102,617,282 $ 17,000,000 $ - $ (7,000,004) $ 112,617,278 Page 1 of 7 2021 04 TSO spreadsheet City of Yakima Distribution of Cash and Investments as of 12/31/2021 Depository Banks, $19,806,165 , 15% Investment Portfolio, 50,000,000 , 38°% Local Government Investment Pool, $62,617,278 , 47% Page 2 of 7 City of Yakima Investment Portfolio- Inventory by Agency December 31, 2021 Expected Days to Call Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch MSFT 1512 594918BW3 1,000,000 996,920 2.400 3/15/19 2/6/22 2/6/22 37 1,000,182 NC Aaa AAA AA+ FHLB 1556 313378CR0 1,000,000 1,032,367 2.250 0.630 3/6/20 3/11/22 70 1,004,176 NC Aaa AA+ NA FNMA 1550 3135G0T45 1,000,000 1,009,506 1.875 1.422 2/14/20 4/5/22 95 1,004,200 NC Aaa AA+ AAA FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 136 1,007,985 NC Aaa AA+ AAA FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 152 1,008,862 NC Aaa AA+ AAA FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 252 1,019,666 Amer Aaa AA+ AA+ FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 291 1,017,738 NC Aaa AA+ AAA FFCB 1551 3133EA7E2 1,000,000 1,014,130 1.960 1.430 2/14/20 11/7/22 311 1,015,777 NC Aaa AA+ AAA FHLB 1544 313381BR5 1,000,000 1,006,250 1.875 1.660 12/11/19 12/9/22 343 1,013,793 NC Aaa AA+ AAA FNMA 1541 3135GOT94 1,000,000 1,023,490 2.375 1.610 11/20/19 1/19/23 384 1,020,573 NC Aaa AA+ AAA FFCB 1557 3133EG5Y7 1,000,000 1,045,401 2.230 0.650 3/6/20 2/2/23 398 1,021,924 NC Aaa AA+ AAA AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 488 1,023,852 NC AA1 AA+ - WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 542 1,042,013 NC Aa2 AA AA FFCB 1561 3133EMWL2 2,000,000 2,000,314 0.200 0.193 4/19/21 7/19/23 565 1,994,962 NC Aaa AA+ AAA UST 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 608 1,034,531 NC Aaa AA+ AAA FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 627 1,040,834 NC Aaa AA+ AAA FHLB 1558 313375ZL4 2,000,000 2,143,690 2.795 0.200 1/7/21 10/17/23 655 2,076,842 NC Aaa AA+ AAA FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 670 1,020,699 NC Aaa AA+ AAA FFCB 1560 3133EJ2B4 2,000,000 2,147,340 3.000 0.260 3/24/21 12/6/23 705 2,096,108 NC Aaa AA+ AAA FAMCA 1552 31422BSD3 1,000,000 1,004,430 1.590 1.470 2/14/20 1/10/24 740 1,016,638 NC NA NA NA FNMA 1540 3135G0V34 1,000,000 1,032,055 2.500 1.710 11/14/19 2/5/24 766 1,035,421 NC Aaa AA+ AAA FNMA 1573 3135G0V34 1,000,000 1,035,991 2.500 0.771 12/28/21 2/5/24 766 1,035,421 NC Aaa AA+ AAA UST 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 821 2,058,750 NC Aaa AA+ AAA UST 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 835 989,883 NC Aaa NA AAA UST 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 851 1,032,734 NC Aaa NA AAA UST 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 882 2,055,078 NC Aaa NA AAA FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 887 1,030,323 NC NA NA NA UST 1566 91282CCG4 1,000,000 994,102 0.250 0.451 6/30/21 6/15/24 897 985,312 NC Aaa NA AAA UST 1563 9128282N91 2,000,000 2,112,813 1.125 0.352 5/16/21 7/31/24 943 2,063,438 NC Aaa NA AAA UST 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 974 1,025,352 NC Aaa NA AAA UST 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 1,004 2,031,172 NC Aaa NA AAA UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 1,035 2,030,938 NC Aaa NA AAA FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 1,043 1,023,163 NC Aaa AA+ AAA FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 1,078 1,051,363 NC Aaa AA+ NA FAMCA 1555 31422BRT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 1,099 1,020,304 NC NA NA NA UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 1,216 977,695 NC NA NA NA UST 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 1,277 971,328 NC Aaa AA+ AAA UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 1,155 2,006,718 NC Aaa NA AAA FFCB 1570 3133EMVP4 1,000,000 997,850 0.125 0.270 10/18/21 4/13/23 468 995,357 NC Aaa AA+ AAA UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 1,216 977,695 NC NA NA NA UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 1,369 968,086 NC NA NA NA Subtotal 41 50,000,000 51,133,622 Avg. 1.76% 50,846,886 LGIP LGIP NA 62,617,278 62,617,278 0.300 0.300 NA NA 1 62,617,278 NC (Grand Totals $112,617,278 $ 113,750,900 0.97% 324 $ 113,464,164 Page 3 of 7 2021 Q4 TSO spreadsheet City of Yakima Investment Portfolio by Issuer at 12/31/2021 US T, 21,000,000, 19% FAM CA, 5,000,000, 4% F H LB , 6,000,000, 5% r FNMA, 4,000,000, 3% FHLMC, -, 0% r AAPL, 1,000,000, 1% �MSFT, 1,000,000, 1% �WMT, 1,000,000, 1% FFCB, 11,000,000, 10% iiihial‘,, ,...,......,stoits•••1••••00 Diversifying by issuer reduces the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations LGIP, 62,617,278, 56% which can vary by issuer. Page 4 of 7 2021 Q4 TSO spreadsheet Page 5 of 7 City of Yakima Investment Portfolio Maturity Distribution at 12/31/2021 $5,000,000 $4,500,000 Diversifying by maturity reduces the re-investment risk $4,000,00o the city is subject to in any given month when an $3,500,000 investment matures and the principal is reinvested at rates $3,000,000 available at that moment. $2,500,000 $2,000,000 $1,500,000 -- $1,000,000 $500,000 — — — -- $0 >. N N N N N N N N N N N N m m m m m m m m m m m m c Tr Tr TrLll Ill Ill Ln Ln 1!1 Ln Ui Ill N N N N N N N r4.4 N N N N N N r4.4 N r4.4 N N N N N N r4.4 N N r4.4 N r4.4 N r4.4 N N N N r4.4 N r4.4 r4.4 N r4.4 N r4.4 N N C m a mA C GO Q0 > U C 0 > U C 0 > U wA C C1D O_ LL2 ¢ g �, oz LL2 ¢ g - �, o z - LL2 ¢ 2 (r) o z LL2 ¢ g a 2 Page 5 of 7 2021 Q4 TSO spreadsheet City of Yakima 10 Investment Portfolio-Detail of Activity December31, 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 1519 1,000,000 - - 1,000,000 FFCB 1523 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 1570 1,000,000 1,000,000 FFCB Total 10,000,000 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 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 1573 1,000,000 1,000,000 FNMA Total 3,000,000 1,000,000 - 4,000,000 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 1567 2,000,000 2,000,000 US Treasury 1568 2,000,000 2,000,000 US Treasury 1569 1,000,000 1,000,000 US Treasury 1571 1,000,000 1,000,000 US Treasury 1572 2,000,000 2,000,000 US Treasury 17,000,000 4,000,000 - 21,000,000 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 - Corporate Total 4,000,000 - (1,000,000) 3,000,000 Subtotal 45,000,000 6,000,000 (1,000,000) 50,000,000 Other Investments - - - - LGIP(State Pool) LGIP 57,617,282 11,000,000 (6,000,004) 62,617,278 Other Investment Totals 57,617,282 11,000,000 (6,000,004) 62,617,278 'Grand Totals $ 102,617,282 $ 17,000,000 $ (7,000,004) $ 112,617,278 Page 6 of 7 2021 Q4 TS0 spreadsheet City of Yakima Long Term Debt Schedule-by Project Group December 31,2021 Date Issued Maturity Description Note Amount of Issue Current Balance General Obligation Bonds 6p9/2003 12/1/2023 Sundome Expansion Deferred Interest-Maturity$2.5M 1,430,528 117,449.40 6/20/2013 12/1/2028 Street Project Demonstration(Refunded) Various City street improvements 3,500,000 2,447,159.50 6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 4,595,000.00 9/24/2018 6/1/2O35 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,881,553.27 9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,906,990.98 4/21/2020 12/1/2022 2020 Refunding Bonds,Downtown Future 2020 Refunding Bonds,Downtown Futures 260,000 126,750.00 4/21/2020 12/1/2021 2020 Refunding Bonds,Fire Apparatus 2020 Refunding Bonds,Fire Apparatus 140,000 - 4/21/2020 12/1/2022 2020 Refunding Bonds,WV Fire Station 2020 Refunding Bonds,WV Fire Station 140,000 68,250.00 4/21/2020 12/1/2032 2020B Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 4,220,000.00 4/21/2020 12/1/2044 2020B Convention Center Addition 2020B Convention Center Addition 12,620,000 12,050,000.00 4/21/2020 12/1/2044 2020B Convention Center Addition III Re12020B Convention Center Addition IR Refunded 2,495,000 2,380,000.00 Subtotal General Obligation Bonds 64,040,528 37,793,153.15 Certificate of Participation-State of Washington 3/19/2013 6/1/2023 Fire Apparatus One truck 310,414 74,652.02 9/28/2017 6/1/2027 Energy Project 2017 Energy Project(lighting) 921,863 614,757.26 7/21/2020 6/1/2O35 Energy Project 2020 Energy Effidency Project(Lighting) 1,415,000 1,355,000.00 9/28/2017 6/1/2027 Fire Aerial&Pump App Fire Aerial 1,268,053 845,783.57 Subtotal Certificates of Participation 4,492,178 2,890,192.85 Revenue Bonds 43942 49279 2020 Ref 04 Irrigation 2020 Ref 04 Irrigation 3,260,000 2,905,000.00 43942 46722 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 2,080,000.00 5/31/2012 11/1/2023 Wastewater Refunded 2003$10,155,000 issue 9,400,000 2,195,000.00 Subtotal Revenue Bonds 25,905,000 7,180,000.00 Intergovernmental Loans 8/14/2009 9p/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 1,155,701.76 5/6/2010 6/1/2O34 L1000030-0 2010 Railroad Grade Separation 1,149,841 879,221.97 6p9/2014 5/1/2O34 Comm Center Move City portion of County GO Bonds 1,716,500 1,250,000.00 9/30/2015 6/1/2023 '15 Yak Co SIED-21st Ave/Airport 2015 Yakima Co SLED Loan-21st Ave/Airport 307,000 112,061.96 6/1/2016 6/1/2027 '16 Yak Co SIED-SOZO 2016 Yakima Co SIED Loan-SOZO 900,000 582,509.03 11/21/2017 6/1/2024 '17 Yak Co SIED-YV Brewing Project 2017 Yakima Co SIED Loan-YV Brewing Project 61,580 39,901.28 9p9/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rdlmprovements/Aquatics Center 500,000 427,215.60 3/2/2021 6/1/1932 21 Yak Co Seid-SOZO 2021 Yakima Co Seid Loan SOZO 1,000,000 1,000,000.00 6/1/2001 6/1/2021 PW-01-691-051 2001 Fruitavale Neighborhood Sewer 1,466,250 - 9/1/2003 6/1/2023 PW-03-691-025 2003 Naches WTP Improvements 2,694,500 269,450.00 6/27/2005 10/1/2025 SRF-04-65104-035 2005 Naches River WTP Filter Rehab 966,772 188,290.59 12/30/2005 6/1/2025 P14-05-691-064 2005 River Road Sewer 2,307,000 496,983.10 4/30/2007 6/1/2027 PW-09-962-019 2007 Ultra Violet Disinfection 2,300,000 728,333.32 4/15/2009 6/1/2028 PC-08-951-051 2009 New Water Well 2,257,200 848,041.78 10/10/2011 3/31/2033 L1100008 2011 Energy Efficiency 503,558 340,085.71 8/1/2011 9p/2O34 L1200019 2012 Industrial Waste Anaerobic 590,350 431,973.75 6/1/2012 6/1/2O31 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,690,791.40 10/11/2012 6/1/2O37 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,301,435.44 8/5/2013 6/1/2O32 PC-13-961-074 2013 Automated Reading System 5,000,000 2,894,736.84 12/12/2013 10/1/2O34 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,284,620.02 Subtotal Intergovernmental Loans 37,235,351 17,921,353.55 'Grand Total 131,673,056 65,784,700I Page 7 of 7 2021 04 ISO spreadsheet 12 -7/41111111 FINANCE Committee Review of Investment Rationale Date: October 8, 2021 Investment # 2021-1569 is a 4-year US Treasury (UST), face value $1,000,000, maturing September 30, 2025, 0.25% coupon at 98.0735 to yield 0.74%. This trade settles October 1, 2021 with Time Value Investments, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2021. Liquidity: At September 30th , month-end, Key Bank checking account balance was $9.0 million (target minimum is $3 Million), US Bank checking balance was $3.6 million and investment portfolio was $45.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $57.6 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 0.74%. This investment is 66 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 _ 0.080144% www.secureaccess.wa.gov 3-year corporate Unavailable in AA Treasury.gov 3-year Agency FNMA 0.4900% Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 17.4% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.09%, the 2- year at 0.27% the 3-year at 0.49%, and the 5-year at 0.93%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling maturity gaps in a shortened 3-4 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 MA1 / City Manager: Date /O /8 l �r 13 FINANCE Committee Review of Investment Rationale Date: October 18, 2021 Investment # 2021-1570 is a 1.5-year Federal Farm Credit Bank (FFCB), face value $1,000,000, maturing April 13, 2023, 0.13% coupon at 99.785 to yield 0.27%. This trade settles October 18, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevateid LGIP position caused by maturities called during 2021. Liquidity: At September 30th , month-end, Key Bank checking account balance was $9.0 million (target minimum is $3 Million), US Bank checking balance was $3.6 million and investment portfolio was $45.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $57.6 million (target minimum is $5 million). Safety: This purchase is a debt issue of the Government-Sponsored Enterprise (GSE), equivalent to Aaa/AA+ rating by Moody's and S&P. Yield. Yield is 0.27%. This investment is 19 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 _ 0.080144% www.secureaccess.wa.gov 3-year corporate _ Unavailable in AA Treasury.gov 3-year Agency FNMA 0.4900% Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 10.4% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.09%, the 2- year at 0.27% the 3-year at 0.49%, and the 5-year at 0.93%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling maturity gaps in a shortened 3-4 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 I /f 41'74)ZI City Manager: V Date t Li l� • 14 1 FINANCE Committee Review of Investment Rationale Date: October 18, 2021 Investment # 2021-1571 is a 4-year US Treasury (UST), face value $1,000,000, maturing June 30, 2025, 0.25%coupon at 97.953125 to yield 0.81%. This trade settles October 18, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2021. Liquidity: At September 30th , month-end, Key Bank checking account balance was $9.0 million (target minimum is $3 Million), US Bank checking balance was $3.6 million and investment portfolio was $45.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $57.6 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 0.81%. This investment is 73 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 0.080144% www.secureaccess.wa.gov 3-year corporate Unavailable in AA Treasury.gov 3-year Agency FNMA 0.4900% Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 18.% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is currently low and flat; the 1-year Treasury at 0.09%, the 2- year at 0.27% the 3-year at 0.49%, and the 5-year at 0.93%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling maturity gaps in a shortened 3-4 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 1 f l 4417°2') I City Manager: - -- -^-- — Date [LI boa 1 15 FINANCE Committee Review of Investment Rationale Date: November 15, 2021 Investment # 2021-1572 is a 3.5-year US Treasury (UST), face value $2,000,000, maturing February 28, 2025, 1.125% coupon at 100.7578125 to yield 0.89%. This trade settles November 16, 2021 with Wedbush Securities, US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2021. Liquidity: At October 31st , month-end, Key Bank checking account balance was $8.5 million (target minimum is $3 Million), US Bank checking balance was $7.3 million and investment portfolio was $48.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $53.6 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 0.89%. This investment is 80 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 0.094149% www.secureaccess.wa.gov 3-year corporate Unavailable in AA Treasury.gov 3-year Agency FNMA 0.7900% Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 20.% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is currently low but slightly higher than last month; the 1-year Treasury at 0.15%, the 2-year at 0.50% the 3-year at 0.79%, and the 5-year at 1.20%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling maturity gaps in a shortened 3-4year 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: . g/ Date j-�l0 _��Z t^ City Manager: /Aft u' cc.st,c. 0- Date ll 3cA 241- 16 r y{: ' y FINANCE Committee Review of Investment Rationale Date: December 27, 2021 Investment# 2021-1573 is a 2-year FNMA (Federal National Mortgage Association / Fannie Mae), face value $1,000,000, maturing February 05, 2024, 2.500% coupon purchased at 103.599100 to yield .771%. This trade settles December 28, 2021 with Wedbush Securities, US Bank Safekeeping. This investment is replacing$1,000,000 that was called this month. Liquidity: At November 30 month-end, Key Bank checking account balance was $6.1 million (target is $3 Million), US Bank checking balance was $9.4 million and invested yield segment of portfolio was $50.0 million (target is $60 million for Treasuries, Corporates and Agencies). Current LGIP balance was $60.6 million (target minimum is $3 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 .771% This investment is 68 basis points over LGIP, seeking to protect yield in an uncertain environment. Comparable yields are: LGIP current 30-day yield ` .086278% www.secureaccess.wa.gov 2-year Treasury .56 Treasury.gov Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 3.9% of total portfolio. This purchase increases a maturity date previously covered in the city's laddered portfolio. Outlook. The yield curve is currently low but slightly higher than last month; the 1-year Treasury at 0.25%, the 2-year at 0.56% the 3-year at 0.85%, and the 5-year at 1.15%. The Federal Reserve Bank has been keeping rates low with uncertainty of a 2022 rate hike increasing. By filling maturity gaps in a shortened 3-4year 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-fV6 City Manager: Date 1111:1 ?2-1