HomeMy WebLinkAboutFY2025 2nd Qtr Investment ReportCity of Iowa City
Quarterly
Investment Report
October 1, 2024
to
December 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 second quarter of this fiscal year had an
average return of 4.31%. The City purchased eleven new investments in this quarter. The
Federal Funds Rate decreased to 4.33%.
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 4.996% and the twelve-month return was 4.698%. 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 4.20%.
Investments for this year are $52,755,034 higher than last year. The increase in investments is
due to investing more of the City’s cash on hand as interest rates had high and were projecting
to decrease in the future.
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City of Iowa City vs. 6 and 12 Month Treasury Bill
City of Iowa City 6 Month T-bill 12 Month T-bill
Treasury bills and fed funds are competing investments in the money market. The federal funds
rate is highly influential and often has a direct effect on the U.S. economy, because it serves as
a base for interest rates offered by various financial and credit institutions to businesses and
consumers.
The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to
achieving its employment and inflation goals are roughly in balance. The economic outlook is
uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
In support of it’s goals, the Committee decided to lower the target range for the federal funds
rate by 1/2 percentage point to 4-1/4 to 4-1/2 percent. In considering additional adjustments to
the target range for the federal funds rate, the Committee will carefully assess incoming data,
the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings
of Treasury securities and agency debt and agency mortgage-backed securities. The
Committee is strongly committed to supporting maximum employment and returning inflation to
its 2 percent objective.
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Federal Funds Rate
12/31/24 12/31/23
Investment Investment Depository
Institution Name Amount Amount Limit
MidwestOne Bank 91,730,884$ 76,610,450$ 150,000,000$
Piper Jaffray & Co.43,999,520$ 44,998,855$ N/A
Iowa Public Agency Investment Trust 33,290,043$ 31,746,983$ N/A
US Bank -$ -$ 65,000,000$
Green State Credit Union 10,000,000$ 20,000,000$ 50,000,000$
Hills Bank & Trust 101,229$ 100,976$ 25,000,000$
Bankers Trust 25,079,193$ 12,466,883$ 50,000,000$
Cedar Rapids Bank and Trust 5,267,998$ 15,000,000$ 50,000,000$
West Bank 77,532,350$ 74,412,428$ 100,000,000$
Total 287,001,218$ 275,336,574$
City of Iowa City
Investments On Hand
Listing By Institution
MidwestOne Bank
Piper Jaffray & Co.
Iowa Public Agency
Investment Trust
Green State Credit
Union
Hills Bank & Trust
Bankers Trust
Cedar Rapids Bank and Trust
West Bank
City of Iowa City
Investments by Institution
December 31, 2024
12/31/24 12/31/23
Investment Investment
Fund Type Amount Amount
Operating 263,001,698$ 245,337,719$
General Fund Reserve 7,999,520$ 9,998,855$
Equipment Reserve 4,000,000$ 6,000,000$
Health Insurance Reserve 4,000,000$ 6,000,000$
Landfill Replacement Reserve -$ -$
Landfill Closure 8,000,000$ 8,000,000$
Water Reserve -$
Total 287,001,218$ 275,336,574$
City of Iowa City
Investments On Hand
Summary By Fund
Operating
General Fund Reserve
Equipment Reserve
Health Insurance
Reserve
Landfill Closure
City of Iowa City
Investments by Fund
December 31, 2024
Fund Investment Purchase Maturity Investment
Institution Type Type Date Date Amount
Investments on Hand at 9/30/24 273,268,762.74$
Purchases
MidwestOne Operating CD 10/16/2024 10/16/2025 5,000,000.00
MidwestOne Operating CD 10/22/2024 10/22/2025 10,000,000.00
MidwestOne Operating Money Market 10/17/2025 5,000,000.00
MidwestOne Operating Money Market 10/18/2025 17,000,000.00
Piper Sandler Operating Federeal National Mortgage 10/18/2024 10/17/2025 5,000,000.00
Bankers Trust Operating Money Market 10/21/2025 10,000,000.00
Bankers Trust Operating Money Market 11/15/2025 5,000,000.00
Bankers Trust Operating Money Market 11/19/2024 10,000,000.00
Piper Sandler Operating Federal Home Loan 11/13/2024 11/13/2025 5,000,000.00
Bankers Trust Operating CD 11/15/2024 11/15/2025 9,000,000.00
MidwestOne Operating CD 11/7/2024 11/7/2025 5,000,000.00
MidwestOne Operating CD 11/8/2024 5/8/2025 20,000,000.00
IPAIT Operating Strips 11/12/2025 11/15/2025 19,999,938.43
West Bank Operating CD 11/8/2024 11/8/2025 67,000,000.00
MidwestOne Operating Money Market 12/2/2024 5,000,000.00
Bankers Trust Operating Money Market 12/23/2024 2,000,000.00
Cedar Rapids Bank and Trust Operating CD 12/16/2025 5,267,997.97
Piper Sandler Operating Federal Home Loan 12/19/2024 12/19/2025 10,000,000.00
Interest and Accretion 1,468,859.72
Total Purchases 216,736,796.12
Redemptions
MidwestOne Operating CD 10/13/2023 10/13/2024 5,000,000.00
GreenState Operating CD 10/13/2024 10/14/2024 5,000,000.00
MidwestOne Operating CD 4/22/2024 10/22/2024 10,000,000.00
Bankers Trust Operating Money Market 10/18/2025 5,000,000.00
MidwestOne Operating Money Market 10/30/2025 5,000,000.00
Cedar Rapids Bank and Trust Operating CD 11/29/2023 11/29/2024 5,000,000.00
Cedar Rapids Bank and Trust Operating CD 11/16/2023 11/15/2024 5,000,000.00
Piper Sandler Operating Federal Farm Credit 08/21/2024 11/19/2024 10,000,000.00
Bankers Trust Operating Money Market 11/13/2024 5,000,000.00
Bankers Trust Operating Money Market 11/15/2025 9,000,000.00
MidwestOne Operating Money Market 11/26/2025 5,000,000.00
MidwestOne Operating Money Market 11/08/2025 20,000,000.00
IPAIT Operating Money Market 11/12/2024 19,999,938.43
West Bank Operating Money Market 11/08/2024 67,000,000.00
Piper Sandler Equipment Replacement Agency Bond 12/30/2020 12/23/2024 2,000,000.00
Cedar Rapids Bank and Trust Operating CD 12/15/2023 12/15/2024 5,000,000.00
MidwestOne Operating CD 06/28/2024 12/28/2024 5,000,000.00
Bankers Trust Operating Money Market 12/19/2025 10,000,000.00
MidwestOne Operating Money Market 12/11/2024 5,000,000.00
Expenses 4,402.16
Total Redemptions 203,004,340.59
Investments on Hand at 12/31/24 287,001,218.27$
City of Iowa City
Investment Activity
For The Quarter Ended December 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 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 10/02/2020 09/22/2025 1,999,520.26
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 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 ---12/31/2024 21,730,883.64
Hills Bank Operating Money Mkt ---12/31/2024 101,229.24
West Bank Operating Money Mkt ---12/31/2024 10,532,350.40
Bankers Trust Operating Money Mkt ---12/31/2024 16,079,193.45
IPAIT Operating Money Mkt ---12/31/2024 2,252,469.69
Cedar Rapids Bank and Trust Company, IA Operating Money Mkt ---12/31/2024 10,920,507.26
Midwestone Bank Operating CD 01/30/2024 01/30/2025 5,000,000.00
Midwestone Bank Operating CD 04/22/2024 04/22/2025 10,000,000.00
GreenState Operating CD 1/24/2024 1/26/2025 5,000,000.00
GreenState Operating CD 7/31/2024 7/31/2025 5,000,000.00
Midwestone Bank Operating CD 8/23/2024 8/23/2025 5,000,000.00
Midwestone Bank Operating CD 9/16/2024 9/16/2025 5,000,000.00
Midwestone Bank Operating CD 6/28/2024 6/28/2025 5,000,000.00
Bankers Trust Operating CD 11/15/2024 11/15/2025 9,000,000.00
Federal Home Loan Banks Operating Agency Bond 11/13/2024 11/13/2025 5,000,000.00
Federal Home Loan Banks Operating Agency Bond 12/19/2024 12/19/2025 10,000,000.00
Federal National Mortgage Association Operating Agency Bond 10/18/2024 10/17/2025 5,000,000.00
Midwestone Bank Operating CD 10/16/2024 10/16/2025 5,000,000.00
Midwestone Bank Operating CD 11/7/2024 11/7/2025 5,000,000.00
Midwestone Bank Operating CD 11/8/2024 5/8/2025 20,000,000.00
US Treasury Operating Bond 11/12/2024 11/15/2025 20,117,066.36
West Bank Operating CD 11/8/2024 11/8/2025 67,000,000.00
Cedar Rapids Bank and Trust Company, IA Operating CD 12/15/2024 12/16/2025 5,267,997.97
Midwestone Bank Operating CD 10/22/2024 10/22/2025 10,000,000.00
287,001,218.27$
City of Iowa City
Investments On Hand
December 31, 2024