HomeMy WebLinkAboutFY2024 3rd Qtr Investment ReporterCity of Iowa City
Quarterly
Investment Report
January 1, 2024
to
March 31, 2024
Finance Department
Prepared by:
Emily Droll
Senior Accountant-Revenue
Overview
The City of Iowa City’s investment objectives are safety, liquidity and yield. The primary
objective of the City of Iowa City’s investment activities is the preservation of capital and the
protection of investment principal. The City’s investment portfolio remains sufficiently liquid to
enable the City to meet operating requirements that cash management procedures anticipate.
Investments purchased by the City of Iowa City for the third quarter of this fiscal year had an
average return of 5.23%. The City purchased two new investments in this quarter. The Federal
Funds Rate remained the same at quarter end at 5.33%.
In investing public funds, the City’s cash management portfolio is designed with the objective of
regularly exceeding the average return on the six-month U.S. Treasury Bill. The Treasury Bill is
considered a benchmark for riskless investment transactions and therefore comprises a
minimum standard for the portfolio’s rate of return. Since the city’s investments are mostly
between the six-month and twelve-month range, the yield curve for the twelve-month U.S.
Treasury Bill has been added to the chart. The rolling average return on the six-month U.S.
Treasury Bill for the prior 365 days was 5.353% and the twelve-month return was 5.114%. The
investment program seeks to achieve returns above this threshold, consistent with risk
limitations and prudent investment principles. The rate of return on the City’s entire portfolio for
the quarter was 4.38%.
Investments for this year are $21,448,359 higher than last year. The increase in investments is
due to investing more of the City’s cash on hand as interest rates have increased.
Treasury bills and fed funds are competing investments in the money market. The federal funds
rate is highly influential and often has a direct effect on the U.S. economy, because it serves as
a base for interest rates offered by various financial and credit institutions to businesses and
consumers.
The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee
decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The
Committee does not expect it will be appropriate to reduce the target range until it has gained
greater confidence that inflation is moving sustainably toward 2 percent. In addition, the FOMC
will continue reducing its holdings of Treasury securities and agency debt and agency
mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal
Reserve's Balance Sheet that were issued in previously announced plans. The FOMC is
strongly committed to returning inflation to its 2 percent objective.
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3/31/24 3/31/23
Investment Investment Depository
Institution Name Amount Amount Limit
MidwestOne Bank 71,959,764$ 70,778,414$ 150,000,000$
Piper Jaffray & Co.39,999,021$ 60,962,299$ N/A
Iowa Public Agency Investment Trust 32,076,727$ 35,671,806$ N/A
First Interstate Bank -$ -$ 100,000,000$
US Bank -$ 5,000,000$ 65,000,000$
Green State Credit Union 25,000,000$ -$ 50,000,000$
Hills Bank & Trust 101,039$ 100,787$ 25,000,000$
Bankers Trust 12,732,085$ 6,293,282$ 50,000,000$
Cedar Rapids Bank and Trust 15,000,000$ -$ 50,000,000$
West Bank 75,297,131$ 71,910,819$ 75,000,000$
Total 272,165,766$ 250,717,407$
City of Iowa City
Investments On Hand
Listing By Institution
MidwestOne Bank
Piper Jaffray & Co.
Iowa Public Agency
Investment Trust
First Interstate Bank
Hills Bank & Trust
Bankers Trust
West Bank
City of Iowa City
Investments by Institution
March 31, 2024
3/31/24 3/31/23
Investment Investment
Fund Type Amount Amount
Operating 242,166,746$ 214,514,052$
General Fund Reserve 9,999,021$ 9,998,355$
Equipment Reserve 6,000,000$ 10,000,000$
Health Insurance Reserve 6,000,000$ 6,000,000$
Landfill Replacement Reserve -$ 2,000,000$
Landfill Closure 8,000,000$ 6,000,000$
Water Reserve -$ 2,205,000$
Total 272,165,766$ 250,717,407$
City of Iowa City
Investments On Hand
Summary By Fund
Operating
General Fund Reserve
Equipment Reserve
Health Insurance
Reserve
Landfill Replacement
Reserve
Landfill Closure
Water Reserve
City of Iowa City
Investments by Fund
March 31, 2024
Fund Investment Purchase Maturity Investment
Institution Type Type Date Date Amount
Investments on Hand at 12/31/24 275,336,574.43$
Purchases
MidwestOne Operating CD 1/30/2024 1/30/2025 5,000,000.00
Bankers Trust Operating Money Market - - 5,000,000.00
IPAIT Operating Money Market - - 5,238,000.00
GreenState Credit Union Operating Money Market 1/24/2024 1/27/2025 5,000,000.00
Interest and Accretion 1,834,598.53
Total Purchases 22,072,598.53
Redemptions
Piper Sandler Operating Fed Home Loan 5/24/2023 2/20/2024 5,000,000.00
MidwestOne Operating Money Market - - 5,000,000.00
IPAIT Operating Fed Home Loan 01/27/2023 01/24/2024 5,238,000.00
Bankers Trust Operating Money Market - - 5,000,000.00
MidwestOne Operating CD 01/27/2023 01/27/2024 5,000,000.00
Expenses 5,406.68
Total Redemptions 25,243,406.68
Investments on Hand at 9/30/23 272,165,766.28$
City of Iowa City
Investment Activity
For The Quarter Ended March 31, 2024
Institution Investment Purchase Maturity Investment
Name Fund Type Date Date Amount
Federal Home Loans Mortgage Co Equipment Replacement Fund Agency Bond 08/19/2020 02/14/2025 2,000,000.00
Federal Farm Credit Banks Funding Corp Equipment Replacement Fund Agency Bond 12/23/2020 12/23/2024 2,000,000.00
Federal Home Loan Banks Equipment Replacement Fund Agency Bond 02/17/2021 02/17/2026 2,000,000.00
Federal Home Loan Banks General Fund Reserve Agency Bond 08/09/2021 08/09/2024 2,000,000.00
Federal Home Loan Banks General Fund Reserve Agency Bond 10/02/2020 09/22/2025 1,999,020.54
Federal Home Loan Banks General Fund Reserve Agency Bond 01/14/2021 01/14/2026 2,000,000.00
Federal Home Loan Banks General Fund Reserve Agency Bond 01/28/2021 01/28/2026 2,000,000.00
Federal Home Loan Banks General Fund Reserve Agency Bond 03/30/2021 03/30/2026 2,000,000.00
Federal Home Loans Mortgage Co Health Insurance Reserve Agency Bond 11/17/2020 05/17/2024 2,000,000.00
Federal Farm Credit Banks Funding Corp Health Insurance Reserve Agency Bond 09/10/2020 09/10/2040 2,000,000.00
Federal Home Loan Banks Health Insurance Reserve Agency Bond 08/23/2021 05/23/2025 2,000,000.00
Federal National Mortgage Association Landfill Closure Fund Agency Bond 12/22/2020 06/22/2029 2,000,000.00
Federal National Mortgage Association Landfill Closure Fund Agency Bond 12/29/2020 12/29/2027 2,000,000.00
Federal Home Loan Banks Landfill Closure Fund Agency Bond 01/29/2021 01/29/2027 2,000,000.00
Federal Home Loan Banks Landfill Closure Fund Agency Bond 01/27/2021 07/27/2026 2,000,000.00
Midwestone Bank Operating Money Mkt --- 12/31/2023 31,959,764.09
Hills Bank Operating Money Mkt --- 12/31/2023 101,038.77
West Bank Operating Money Mkt --- 12/31/2023 75,297,130.94
Bankers Trust Operating Money Mkt --- 12/31/2023 12,732,084.71
IPAIT Operating Money Mkt --- 12/31/2024 11,165,985.87
Cedar Rapids Bank and Trust Company, IA Operating Money Mkt --- 12/31/2024 10,514,799.86
Midwestone Bank Operating CD 10/13/2023 10/13/2024 5,000,000.00
Midwestone Bank Operating CD 01/30/2024 01/30/2025 5,000,000.00
Midwestone Bank Operating CD 05/16/2023 05/16/2024 10,000,000.00
Midwestone Bank Operating CD 06/13/2023 06/13/2024 10,000,000.00
Midwestone Bank Operating CD 08/23/2023 08/23/2024 5,000,000.00
Midwestone Bank Operating CD 09/14/2023 09/14/2024 5,000,000.00
GreenState Operating Time Deposit 07/27/2023 07/29/2024 5,000,000.00
GreenState Operating CD 08/16/2023 08/16/2024 5,000,000.00
GreenState Operating CD 08/16/2023 08/16/2024 5,000,000.00
United States Treasury Operating US Gov 04/11/2022 04/15/2024 10,395,941.54
Federal Home Loan Banks Operating Agency Bond 04/14/2023 04/12/2024 10,000,000.00
GreenState Operating CD 10/13/2023 10/14/2024 5,000,000.00
Cedar Rapids Bank and Trust Company, IA Operating CD 11/29/2023 11/29/2024 5,000,000.00
Cedar Rapids Bank and Trust Company, IA Operating CD 11/16/2023 11/15/2024 5,000,000.00
Cedar Rapids Bank and Trust Company, IA Operating CD 12/15/2023 11/15/2024 5,000,000.00
GreenState Operating CD 1/24/2024 1/26/2025 5,000,000.00
272,165,766.32$
City of Iowa City
Investments On Hand
March 31, 2024