HomeMy WebLinkAbout08/19/2014 05B 2nd Quarter 2014 Treasury ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.B.
For Meeting of: August 19, 2014
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ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
2nd 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
2014 -2nd Quarter Treasury Report Summary and
Narrative
2014 -2nd Qtr Treasury Report
Upload Date
2014
:014
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: August 19, 2014
Re: 2014 – 2nd 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 remained flat at 1.03% for the second
quarter of 2014.
Short term rates remain low despite strengthening economic indicators. The LGIP dipped to a new
all-time low of 0.0878% at June 30. Generally, with rates at such low yields, 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. However, due to bond requirements
surrounding use of proceeds, the street bond monies were deposited to the LGIP during
construction.
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
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. Fund 471 – Refuse was in a negative cash position at quarter -end. This is due to
tight operating margins and timing issues surrounding the billing and collection process.
City of Yakima
Cash and Investment Summary
June 30, 2014
Description
Qty
Par
Book
Percent of
Portfolio
Average
Yield Q1 '14
Average
Yield Q2 '14
Cash Balances on Hand and in Banks
NA
$ 9,257,175
NA
NA
NA
Local Government Investment Pool (LGIP)**
1
$ 15,554,062
15,554,062
23%
0.11%
0.09%
Federal Agency Coupon and Discount
19
49,422,000
48,326,820
72%
1.24%
1.33%
Other Investments
2
3,232,170
3,584,787
5%
1.13%
1.13%
Total Invested
22
$ 68,208,232
$ 67,465,669
100%
1.03%
1.03%
** Includes Street Bond Proceeds of nearly $15 million
Summary of Investment Activity
Book Balance
4/1/2014
Purchases
& Deposits
Interest Maturities, Calls
Reinvested & Withdrawals
Book Balance
6/30/2014
Local Government Investment Pool (LGIP)
Federal Agency Coupon and Discount
Other Investments
$ 4,318,850
42,384,039
3,584,613
$ 14,733,470
5,942,781
$ 1,742 $ 3,500,000
174
$ 15,554,062
- 48,326,820
- 3,584,787
Totals
$ 50,287,502
$ 20,676,251 $ 1,916 $ 3,500,000
$ 67,465,669
Page 1 of 5
PDFConvert.4318.1.TSO_Q2_2014.xlsx
City of Yakima
Investment Portfolio - Inventory by Agency
June 30, 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
FFCB 1481 1,000,000 998,844 0.690
1.290 9/25/18 9/25/12 11/25/13 Amer 9/25/18
2.000 5/1/17 5/30/14 8/31/14 Amer 11/1/14
FFCB Totals and Avera
3,000,000 2,998,844
1.526
Federal Home Loan Bank
FHLB 1466 2,000,000 1,998,940 1.150 1.263 7/25/18 2/6/13 10/25/13 Qrty 7/25/18
FHLB 1467 2,000,000 1,994,456 0.850 1.170 10/30/17 2/6/13 10/30/13 Qrty 10/30/15
FHLB 1470 2,000,000 2,000,000 1.000 Step to 2.5 % 1.000 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 Averal 9,000,000
8,988,410 1.069
Federal Home Loan Mortgage Corporation
FHLMC 1463 3,000,000 3,000,000 1.000
FHLMC 1480 1,660,000 1,654,394 1.200
1.000 1/17/18 10/17/12 10/17/14 1 x 1/17/18
1.528 6/12/18 05/27/14 9/12/14 Qrty 6/12/15
FHLMC Totals and Ave 4,660,000
4,654,394 1.188
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 1.200 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 1.753 7/30/18 12/13/13 4/30/14 Qrty 10/30/15
FNMA 1476 2,000,000 1,978,940 1.640 1.933 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 1479 2,000,000 1,992,388 1.625 2.010 8/28/19 5/27/14 5/28/14 Qrty 5/28/15
FNMA Totals and Aver, 20,400,000
20,080,004 1.502
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 1.049 1.049 2/8/18 10/31/12 2/8/18 NC 2/8/18
FICO 1478 1,366,000 1,297,155 1.320 1.320 5/2/18 5/27/14 5/2/18 NC 5/2/18
FICO Totals and Averal 12,362,000 11,605,168 1.229
Other Investments
LGIP LGIP 15,554,062 15,554,062 0.094
YFED 1473 174,697 174,697 0.400
CNTY 1442 500,000 565,490 5.000
CNTY 1471 2,295,000 2,582,127 5.000
YF -CD 1447 262,473 262,473 2.050
Other Totals and Averal 18,786,232 19,138,849
0.094 NA NA NA NC NA
0.400 NA 7/1/13 NA NC NA
1.500 7/1/15 8/19/11 7/1/15 NC 7/1/15
1.000 9/1/16 6/24/13 9/1/16 NC 9/1/16
2.100 3/30/16 8/31/11 2/28/15 NC 2/28/15
0.288
Coupon Steps
Coupon
Steps
Investment #
Rate up to:
2013
2016
2016
2017
2017
1470
June, Dec 20
1.000
1.125
1.250
1.500
2.500
Page 2 of 5
PDFConvert.4318.1.TSO_Q2_2014.xlsx
City of Yakima
Investment Portfolio - Detail of Activity
Quarter Ending June 30, 2014
Agency
Beginning Additions and Calls and Ending Date of
Inv# Face Value Purchases Maturities Face Value Activity
Federal Farm Credit Bureau
FFCB 1462 2,000,000
FFCB 1481
1,000,000
2,000,000
1,000,000 5/30/14
FFCB Totals
2,000,000 1,000,000 3,000,000
Federal Home Loan Bank
FHLB 1466 2,000,000 2,000,000
FHLB 1467 2,000,000 2,000,000
FHLB 1470 2,000,000 2,000,000
FHLB 1474 3,000,000 3,000,000
FHLB Totals
9,000,000 9,000,000
Federal Home Loan Mortgage Corporation
FHLMC 1463 3,000,000
FHLMC 1480
1,660,000
3,000,000
1,660,000 5/27/14
FHLMC Totals
3,000,000 1,660,000 4,660,000
Federal National Management Association
FNMA 1460 5,000,000
FNMA 1468 2,000,000
FNMA 1469 3,000,000
FNMA 1472 2,000,000
FNMA 1475 2,000,000
FNMA 1476 2,000,000
FNMA 1477 2,400,000
FNMA 1479
2,000,000
5,000,000
2,000,000
3,000,000
2,000,000
2,000,000
2,000,000
2,400,000
2,000,000 5/27/14
FNMA Totals
18,400,000 2,000,000 20,400,000
Financing Corporation
FICO 1454 722,000
FICO 1455 2,356,000
FICO 1457 2,146,000
FICO 1458 2,142,000
FICO 1464 3,630,000
FICO 1478
1,366,000
722,000
2,356,000
2,146,000
2,142,000
3,630,000
1,366,000 5/27/14
FICO Totals
10,996,000 1,366,000 12,362,000
Other Investments
LGIP (State Pool) LGIP 4,318,850 14,735,212 (3,500,000) 15,554,062
Yakima Federal Savings YFED 174,523 174 174,697
Grays County Bonds 1442 500,000 500,000
Cowlitz County Bonds 1471 2,295,000 2,295,000
Yakima Federal CD 1447 262,473 262,473
Other Investment Totals
7,550,845 14,735,386
(3,500,000) 18,786,231
Grand Totals $ 50,946,845 $ 20,761,386 $ (3,500,000) $ 68,208,231
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PDFConvert.4318.1.TSO_Q2_2014. xlsx
City of Yakima
Bonded Debt Schedule - by Project Group
Quarter Ending June 30, 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
12/1/2005 2/1/2015
8/28/2008 12/1/2019
5/8/2007 5/1/2022
5/8/2007 5/1/2017
6/20/2013 6/20/2028
6/9/2014 6/1/2024
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
Parks and Recreation
Infrastructure Projects
Downtown Futures
River Road
Street Project Demonstration
Street Resurfacing Project
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
Parks improvements
Ped crossing, street, infrastructure
Renovate downtown improvements
River Road improvements
Various City street improvements
Streets 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
755,000
2,190,000
1,490,000
1,765,000
5,000,000
13,140,000
2,170,000
4,330,000
1,130,000
1,755,000
3,225,000
743,120
285,000
500,000
500,000
175,000
1,270,000
905,000
615,000
4,706,367
13,140,000
265,000
50,000
95,000
185,000
74,451
Subtotal General Obligation Bonds
$45,765,528
$35,449,487 $669,451
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
$3,533,597 $639,593
$389,163 $70,440
$420,411
$310,414
Subtotal Certificates of Participation
$5,520,054
$4,653,585 $710,033
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
9/1/2034 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
$80,614,533
$59,293,072 $1,379,484
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City of Yakima
Interfund Borrowings and Investments
Quarter Ending June 30, 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
600,000 473,951
$ 79,700 $ 428,800 Equipment Rental
25,430 448,521 Equipment Rental
Funds in Negative Cash Position at Quarter End
Ending Cash
Balance
Cash Extended by:
Fund 471 - Refuse General Fund
Refuse cash was fully expended at the end of the quarter due to tight margins and timing issues. Cash was positive by mid-July. An interfund loan is not necessary.
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