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HomeMy WebLinkAbout04/19/2022 06.C. 2022 1st Quarter Treasury Report Y�'1114'+ `c,...41 41)? CL3LOril BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.C. For Meeting of:April 19, 2022 ITEM TITLE: 2022 1st Quarter Treasury Report SUBMITTED BY: Jennifer Ferrer-Santa Ines, Director of Finance and Budget SUMMARY EXPLANATION: The Treasury Report for the first quarter of 2022 is attached and consists of the following: • 1st Quarter Treasurer's Report • Cash and Investments • Long Term Debt • I me rf u nd 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 purposes. ATTACHMENTS: Description Upload Date Type 1 Quarterly Treasury Report 4/8/2022 Corer Memo 2 ,c YA"•••,, 1. am•. • I>% FINANCE Date: April 4, 2022 •. WPTA To: Mayor and City Council CERTIFICATEOF.b(CELLENCE • t Investment Polity Bob Harrison, City Manager CITY OF YAKIMA February WO From: Jennifer Ferrer-Santa Ines, Director of Finance and Budget Kimberly Domine, Financial Services Manager .r 4 -T.= Re: 2022 — 1st 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 adopted by ordinance on February 1, 2022; 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 $134.5 million: $18.8 million in depository banks, $63.7 million in the State Pool, and $52.0 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 March 2022 month end 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 • 111 --- NEN $60,000,000 i i I i i IN .$40,000,000 ■ .N . p . : : C • : _ $20,000,000 : I I i 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: • 1512 $1 ,000,000 Microsoft Corp. called 1/06/2022 • 1556 $1 ,000,000 FHLB matured on 3/11/2022 Purchases: During the last quarter, the following were purchased: • 1574 $2,000,000 US Treasury to mature 3/31/2025 • 1575 $2,000,000 US Treasury to mature 5/31/2025 Portfolio and Benchmark Yield and Maturity: Avg. weighted yield of City investments, excluding LGIP: .89% LGIP State Pool 30-day yield: .22% Weighted average maturity of City investments, excluding LGIP: 316 days Weighted average maturity of LGIP State Pool 30-day yield: 29 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 March 31, 2022, the fixed income market is showing some growth but is still low, evidenced by a yield curve that is extremely low and flat. The difference between the 1- year Treasury at 1.72% and the 5-year Treasury at 2.56%was 84 basis points. The 30-day yield of the State Pool was at 0.22%,with a 29-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 63,652,095 55.04% Treasuries 25,000,000 21.62% Agencies 25,000,000 21.62% Corporates 2,000,000 1.73% 115,652,095 100.00% 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 is one Interfund Loan to help cash flow the Mill Site Project that is waiting for the receipt of grant reimbursements. 3 City of Yakima Cash and Investment Summary March 31 , 2022 Current Prior Quarter Prior Year Description 3/31/2022 12/31/2021 3/31/2021 Cash Balances on Hand in Banks $ 18,804,602 $ 19,806,165 $ 13,611 ,017 Local Government Investment Pool (LGIP) 63,652,095 62,630,601 52,490,818 Investment Portfolio 52,000,000 50,000,000 36,000,000 Total Investments 115,652,095 112,630,601 88,490,818 Total Cash and Investments $ 134,456,697 $ 132,436,766 $ 102,101 ,835 Beg Balance Purchases Interest Maturities, Calls End Balance Summary of Investment Activity 12/31/2021 & Deposits Reinvested & Withdrawals 3/31/2022 Local Government Investment Pool (LGIP) $ 62,630,601 $ 3,000,000 $ 21 ,494 $ (2,000,000) $ 63,652,095 Investment Portfolio 50,000,000 4,000,000 - (2,000,000) 52,000,000 Total Investments $ 112,630,601 $ 7,000,000 $ 21 ,494 $ (4,000,000) $ 115,652,095 Page 1 of 9 2022 01 TSO spreadsheet City of Yakima Distribution of Cash and Investments as of 3/31/2022 Depository Banks, $18,804,602 , 14% Investment Portfolio, 52,000,000 , 39% Local Government Investment Pool, $63,652,095 , 47% Page 2 of 9 City of Yakima Investment Portfolio-Inventory by Agency March 31, 2022 Expected Days to Call Most Agency Inv# CUSIP Face Value Price Coupon Yield Settle Maturity Maturity Market Type Moodys S&P Fitch Next Call Likely Call FNMA 1550 313590T45 1,000,000 1,009,506 1.875 1.422 2/14/20 4/5/22 5 1,000,177 NC Aaa AA+ AAA NC 4/5/22 FFCB 1523 3133EKLR5 1,000,000 999,100 2.250 2.281 5/16/19 5/16/22 46 1,001,791 NC Aaa AA+ AAA NC 5/16/22 FAMCA 1522 31422BFF2 1,000,000 1,000,000 2.350 2.350 5/9/19 6/1/22 62 1,002,433 NC Aaa AA+ AAA NC 6/1/22 FHLB 1509 313383WD9 1,000,000 1,013,146 3.125 2.750 12/19/18 9/9/22 162 1,009,161 Amer Aaa AA+ AA+ 12/1/18 11/9/21 FFCB 1519 3133EKHN9 1,000,000 997,450 2.330 2.406 4/18/19 10/18/22 201 1,007,701 NC Aaa AA+ AAA NC 10/18/22 FFCB 1551 3133EA7E2 1,000,000 1,014,130 1.960 1.430 2/14/20 11/7/22 221 1,004,802 NC Aaa AA+ AAA NC 11/7/22 FHLB 1544 313381BR5 1,000,000 1,006,250 1.875 1.660 12/11/19 12/9/22 253 1,003,418 NC Aaa AA+ AAA NC 12/9/22 FNMA 1541 3135GOT94 1,000,000 1,023,490 2.375 1.610 11/20/19 1/19/23 294 1,006,842 NC Aaa AA+ AAA NC 1/19/23 FFCB 1557 3133EG5Y7 1,000,000 1,045,401 2.230 0.650 3/6/20 2/2/23 308 1,007,476 NC Aaa AA+ AAA NC 2/2/23 AAPL 1516 037833AK6 1,000,000 991,000 2.400 2.634 4/8/19 5/3/23 398 1,005,664 NC AA1 AA+ - NC NC WMT 1513 931142EK5 1,000,000 1,026,800 3.400 2.730 3/15/19 6/26/23 452 1,016,616 NC Aa2 AA AA NC 6/26/23 FFCB 1561 3133EMWL2 2,000,000 2,000,314 0.200 0.193 4/19/21 7/19/23 475 1,954,740 NC Aaa AA+ AAA NC 7/19/23 US T 1545 9128284X5 1,000,000 1,039,063 2.750 1.660 12/11/19 8/31/23 518 1,009,102 NC Aaa AA+ AAA NC 8/31/23 FAMCA 1508 3132X06C0 1,000,000 1,010,972 3.050 2.801 12/19/18 9/19/23 537 1,014,816 NC Aaa AA+ AAA NC 9/19/23 FHLB 1558 313375ZL4 2,000,000 2,143,690 2.795 0.200 1/7/21 10/17/23 565 2,020,618 NC Aaa AA+ AAA NC 10/17/23 FFCB 1537 3133EK4X1 1,000,000 997,924 1.600 1.654 11/6/19 11/1/23 580 992,793 NC Aaa AA+ AAA NC 11/1/23 FFCB 1560 3133EJ2B4 2,000,000 2,147,340 3.000 0.260 3/24/21 12/6/23 615 2,029,684 NC Aaa AA+ AAA NC 12/6/23 FAMCA 1552 31422BSD3 1,000,000 1,004,430 1.590 1.470 2/14/20 1/10/24 650 989,743 NC NA NA NA NC 1/10/24 FNMA 1540 313590V34 1,000,000 1,032,055 2.500 1.710 11/14/19 2/5/24 676 1,004,161 NC Aaa AA+ AAA NC 2/5/24 FNMA 1573 313590V34 1,000,000 1,035,991 2.500 0.771 12/28/21 2/5/24 676 1,004,161 NC Aaa AA+ AAA NC 2/5/24 US T 1559 912828W71 2,000,000 2,112,188 2.125 0.290 3/4/21 3/31/24 731 1,991,328 NC Aaa AA+ AAA NC 3/31/24 US T 1565 91282CBV2 1,000,000 999,023 0.380 0.410 6/30/21 4/14/24 745 960,234 NC Aaa NA AAA NC 4/14/24 US T 1553 9128286R6 1,000,000 1,034,063 2.250 1.413 2/14/20 4/30/24 761 998,008 NC Aaa NA AAA NC 4/30/24 UST 1562 912828XT2 2,000,000 2,103,125 2.000 0.325 4/26/21 5/31/24 792 1,982,500 NC Aaa NA AAA NC 5/31/24 FAMCA 1533 31422BGA2 1,000,000 1,022,900 2.150 1.634 10/18/19 6/5/24 797 995,761 NC NA NA NA NC 6/5/24 US T 1566 91282CCG4 1,000,000 994,102 0.250 0.451 6/30/21 6/15/24 807 953,359 NC Aaa NA AAA NC 6/15/24 UST 1563 9128282N91 2,000,000 2,112,813 1.125 0.352 5/16/21 7/31/24 853 1,985,860 NC Aaa NA AAA NC 7/31/24 US T 1546 9128282U3 1,000,000 1,008,789 1.875 1.660 12/11/19 8/31/24 884 985,859 NC Aaa NA AAA NC 8/31/24 US T 1564 912828YH7 2,000,000 2,074,922 1.500 0.361 6/8/21 9/30/24 914 1,952,968 NC Aaa NA AAA NC 9/30/24 UST 1567 912828YM6 2,000,000 2,074,531 1.500 0.343 8/3/21 10/31/24 945 1,951,094 NC Aaa NA AAA NC 10/31/24 FFCB 1538 3133EK6J0 1,000,000 994,700 1.625 1.736 11/8/19 11/8/24 953 980,190 NC Aaa AA+ AAA NC 11/8/24 FHLB 1554 3130A3GE8 1,000,000 1,058,979 2.750 1.480 2/14/20 12/13/24 988 1,006,655 NC Aaa AA+ NA NC 12/13/24 FAMCA 1555 31422BRT9 1,000,000 1,011,943 1.750 1.495 2/14/20 1/3/25 1,009 980,508 NC NA NA NA NC 1/3/25 UST 1574 912828ZF0 2,000,000 1,946,797 0.500 1.365 2/3/22 3/31/25 1,096 1,883,672 NC Aaa NA AAA NC 3/31/25 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 1,126 936,289 NC NA NA NA NC 4/30/25 UST 1575 912828ZT0 2,000,000 1,925,992 0.250 1.420 3/2/22 5/31/25 1,157 1,861,328 NC Aaa NA AAA NC 5/31/25 US T 1571 912828ZW3 1,000,000 979,531 0.250 0.813 10/18/21 6/30/25 1,187 928,828 NC Aaa AA+ AAA NC 6/30/25 UST 1572 912828ZC7 2,000,000 2,015,156 1.125 0.890 11/16/21 2/28/25 1,065 1,922,578 NC Aaa NA AAA NC 2/28/25 FFCB 1570 3133EMVP4 1,000,000 997,850 0.125 0.270 10/18/21 4/13/23 378 983,638 NC Aaa AA+ AAA NC 4/13/23 UST 1568 912828ZL7 1,000,000 995,467 0.375 0.500 9/1/21 4/30/25 1,126 936,289 NC NA NA NA NC 4/30/25 UST 1569 91282CAM3 1,000,000 980,735 0.250 0.740 10/1/21 9/30/25 1,279 923,672 NC NA NA NA NC 9/30/25 Subtotal 41 52,000,000 52,977,124 Avg. 1.64% 51,186,517 LGIP LGIP NA 63,652,095 63,652,095 0.300 0.300 NA NA 1 63,652,095 NC NA NA Grand Totals $115,652,095 $ 116,629,219 0.92% 316 $ 114,838,612 Page 3 of 9 2022 Q1 TSO spreadsheet City of Yakima Investment Portfolio by Issuer at 3/31/2022 UST, 25,000,000, 22% FAM CA, 5,000,000, 4% FHLB , 5,000,000, 4% r FNMA, 4,000,000, 3% �AAPL, 1,000,000, 1% �WMT, 1,000,000, 1% FFCB, 11,000,000, 10% Diversifying by issuer reduces the credit risk the city is subject to from any one issuer as well as diversifies market price fluctuations LGIP, 63,652,095, 55% which can vary by issuer. Page 4 of 9 2022 Q1 TSO spreadsheet Page 5 of 9 City of Yakima Investment Portfolio Maturity Distribution at 3/31/2022 $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 L >. N N N N N N N N N N N N m m m m m m m m m m m m Tr Tr Tr Tr Tr Tr Tr Tr Tr Tr Ln Ill Ill Ln Ln 1!1 Ln Ln 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 A C GO Q > U C A C GO Q > U C A C C1D Q > U C A C C1D O_ LL2 ¢ g a �, o z o LL2 ¢ g a (no z o LL2 ¢ g a (no z o LL2 ¢ g a La 2 Page 5 of 9 2022 Qi TSO spreadsheet City of Yakima 10 Investment Portfolio-Detail of Activity March 31,2022 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 11,000,000 - - 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 - (1,000,000) 5,000,000 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 4,000,000 - - 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 1574 2,000,000 2,000,000 US Treasury 1575 2,000,000 2,000,000 US Treasury 21,000,000 4,000,000 - 25,000,000 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 - - B NY 1521 - Corporate Total 3,000,000 - (1,000,000) 2,000,000 Subtotal 50,000,000 4,000,000 (2,000,000) 52,000,000 Other Investments - - - - LGIP(State Pool) LGIP 62,630,601 3,021,494 (2,000,000) 63,652,095 Other Investment Totals 62,630,601 3,021,494 (2,000,000) 63,652,095 Grand Totals $112,630,601 $ 7,021,494 $ (4,000,000) $115,652,095 Page 6 of 9 2022 Q 1 TS0 spreadsheet City of Yakima Long Term Debt Schedule-by Project Group March 31,2022 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 6/20/2013 12/1/2028 Street Project Demonstration(Refunded) Various City street improvements 3,500,000 2,447,160 6/9/2014 6/1/2024 Street Resurfacing Project Streets improvements 13,140,000 4,595,000 9/24/2018 6/1/2O35 Soccer Complex(Refunded) City portion of SOZO Sports Complex 4,440,127 3,881,553 9/24/2018 12/1/1942 2018 Aquatic Center YMCA City portion of Aquatic Center 8,009,873 7,906,991 4/21/2020 12/1/2022 2020 Refunding Bonds,Downtown Future 2020 Refunding Bonds,Downtown Futures 260,000 126,750 4/21/2020 12/1/2022 2020 Refunding Bonds,WV Fire Station 2020 Refunding Bonds,WV Fire Station 140,000 68,250 4/21/2020 12/1/2032 2020E Capital Theatre 09 Refunded 2020B Capital Theatre 09 Refunded 4,910,000 4,220,000 4/21/2020 12/1/2044 2020E Convention Center Addition 2020B Convention Center Addition 12,620,000 12,050,000 4/21/2020 12/1/2044 2020E Convention Center Addition III RM 2020E Convention Center Addition Ill Refunded 2,495,000 2,380,000 Subtotal General Obligation Bonds 63,900,528 37,793,153 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 6/1/2O35 Energy Project 2020 Energy Effdency 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 2,905,000 43942 46722 2020 Ref 08 WS Rev 2020 Ref 08 WS Rev 2,590,000 2,080,000 5/31/2012 11/1/2023 Wastewater Refunded 2003$10,155,000 issue 9,400,000 2,195,000 Subtotal Revenue Bonds 25,905,000 7,180,000 Intergovernmental Loans 8/14/2009 9p/2028 PC-08-951-052 2009 Railroad Grade Separation 3,000,000 1,155,702 5/6/2010 6/1/2O34 L1000030-0 2010 Railroad Grade Separation 1,149,841 879,222 6p9/2014 5/1/2O34 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 SLED 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 9p9/2018 6/1/2029 '18 Yak Co SIED-River Rd. 2018 Yakima Co SIED-River Rd Improvements/Aquatics Center 500,000 427,216 3/2/2021 6/1/1932 21 Yak Co Seid-SOZO 2021 Yakima Co Seid Loan SOZO 1,000,000 1,000,000 9/1/2003 6/1/2023 PW-03-691-025 2003 Neches WTP Improvements 2,694,500 269,450 6/27/2005 10/1/2025 SRF-04-65104-035 2005 Neches River WTP Filter Rehab 966,772 188,291 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 L1100008 2011 Energy Efficiency 503,558 327,462 8/1/2011 9p/2O34 L1200019 2012 Industrial Waste Anaerobic 590,350 417,916 6/1/2012 6/1/2O31 PC-12-951-065 2012 Wastewater Treatment Plan 5,000,000 2,690,791 10/11/2012 6/1/2O37 PC-13-961-059 2012 Industrial Sewer Extensions 2,000,000 1,301,435 8/5/2013 6/1/2O32 PC-13-961-074 2013 Automated Reading System 5,000,000 2,894,737 12/31/2021 6/1/2O39 PC20-96103-044 2020 Waterline Improvements 1,737,906 1,737,906 12/12/2013 10/1/2O34 DM-11-952-038 2013 Design WTP Lagoons 3,514,800 2,284,620 Subtotal Intergovernmental Loans 37,507,007 19,632,578 Grand Total 131,804,713 67,495,924 Page 7 of 9 2022 01 ISO spreadsheet City of Yakima Interfund Borrowing March 31,2022 Original BeginningID Ending escription Balance Balance Issued Retired Balance Millsite 2021 $ 3,300,000 $ 3,300,000 $ - $ 3,300,000 $ - Cover Year End Cash Shortfall Millsite 2022 800,000 $ 800,000 Total across all funds 3,300,000 3,300,000 800,000 3,300,000 800,000 Per Ordinance#2013-011 Tempory Interfund Loans to help with cash flow. Page 1 of 1 Interfund 13 �' ��.:l n 1,f N. FINANCE Committee Review of Investment Rationale Date: February 3, 2022 Investment # 2022-1574 is a 3-year US Treasury (UST), face value $2,000,000, maturing March 31, 2025, .50% coupon at 97.33984375 to yield 1.36%. This trade settles February 3, 2022 with Wedbush Securities, US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2022. Liquidity: At January 31st , month-end, Key Bank checking account balance was $10.8 million (target minimum is $3 Million), US Bank checking balance was $3.9 million and investment portfolio was $49.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $60.6 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 1.36%. This investment is 127 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 0.08574% www.secureaccess.wa.gov 3-year Agency FNMA 1.3900% _Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 20.6% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is higher than last month and appears to be on the increase; the 1-year Treasury at 0.78%, the 2-year at 01.18% the 3-year at 1.39%, and the 5-year at 1.63%. 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 01/22— City Manager: Date Z,c�ZZ 14 FINANCE Committee Review of Investment Rationale Date: March 2, 2022 Investment # 2022-1575 is a 3-year US Treasury (UST), face value $2,000,000, maturing May 31, 2025, .25% coupon at 96.2996 to yield 1.42%. This trade settles March 3, 2022 with Time Value Investments, Inc., US Bank Safekeeping, reducing our elevated LGIP position caused by maturities called during 2022. Liquidity: At February 28th , month-end, Key Bank checking account balance was $10.8 million (target minimum is $3 Million), US Bank checking balance was $3.6 million and investment portfolio was $51.0 million (target is $64 million for Treasuries, Corporates and Agencies). Current LGIP balance was $60.6 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 1.42%. This investment is 131 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 , 0.107987% www.secureaccess.wa.gov _ _3-year Agency FNMA 1.6200% Daily Treasury Yield Curve Callability. This investment is not callable (a bullet). Diversification. This purchase brings this issuer to 22.% of total portfolio. This purchase added a maturity date previously not covered in the city's laddered portfolio. Outlook. The yield curve is higher than last month and appears to be on the increase; the 1-year Treasury at 1.01%, the 2-year at 01.44% the 3-year at 1.62%, and the 5-year at 1.71%. 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 3 2 d City Manager: Date