HomeMy WebLinkAboutFY2025 3rd Qtr Investment ReportCity of Iowa City
Quarterly
Investment Report
January 1, 2025
to
March 31, 2025
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 4.245%. The City purchased two new investments in this quarter. The
Federal Funds Rate remained at 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 4.753% and the twelve-month return was 4.511%. 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 3.7%.
Investments for this year are $15,886,646 higher than last year. The increase in investments is
due to investing more of the City’s cash on hand as interest rates have maintained favorability.
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City of Iowa City vs. 6 and 12 Month Treasury Bill
City of Iowa City 6 Month T-bill 12 Month T-bill
Treasury bills and fed funds are competing investments in the money market. The federal funds
rate is highly influential and often has a direct effect on the U.S. economy, because it serves as
a base for interest rates offered by various financial and credit institutions to businesses and
consumers.
The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to
achieving its employment and inflation goals are roughly in balance. The economic outlook is
uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
In support of it’s goals, the Committee decided to maintain the target range for the federal funds
rate at 4-1/4 to 4-1/2 percent. In considering additional adjustments to the target range for the
federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and
the balance of risks. The Committee will continue reducing its holdings of Treasury securities
and agency debt and agency mortgage-backed securities. The Committee is strongly committed
to supporting maximum employment and returning inflation to its 2 percent objective.
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Federal Funds Rate
3/31/25 3/31/24
Investment Investment Depository
Institution Name Amount Amount Limit
MidwestOne Bank 91,909,199$ 71,959,764$ 150,000,000$
Piper Sandler Companies 31,999,689$ 39,999,021$ N/A
Iowa Public Agency Investment Trust 38,646,646$ 32,076,727$ N/A
US Bank -$ -$ 65,000,000$
Green State Credit Union 5,000,000$ 25,000,000$ 50,000,000$
Hills Bank & Trust 101,292$ 101,039$ 25,000,000$
Bankers Trust 37,501,339$ 12,732,085$ 50,000,000$
Cedar Rapids Bank and Trust 5,267,998$ 15,000,000$ 50,000,000$
West Bank 77,626,249$ 75,297,131$ 100,000,000$
Total 288,052,412$ 272,165,767$
City of Iowa City
Investments On Hand
Listing By Institution
MidwestOne Bank
Piper Sandler
Companies
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
March 31, 2025
3/31/25 3/31/24
Investment Investment
Fund Type Amount Amount
Operating 266,052,723$ 242,166,746$
General Fund Reserve 7,999,689$ 9,999,021$
Equipment Reserve 2,000,000$ 6,000,000$
Health Insurance Reserve 4,000,000$ 6,000,000$
Landfill Closure 8,000,000$ 8,000,000$
Total 288,052,412$ 272,165,767$
City of Iowa City
Investments On Hand
Summary By Fund
Operating
General Fund
Reserve
Reserve
Health
Reserve
Landfill Closure
City of Iowa City
Investments by Fund
March 31, 2025
Fund Investment Purchase Maturity Investment
Institution Type Type Date Date Amount
Investments on Hand at 12/31/24 287,001,218.27$
Purchases
MidwestOne Operating CD 02/04/2025 02/04/2026 5,000,000.00
IPAIT Operating CD 02/14/2025 02/13/2026 5,000,000.00
MidwestOne Operating Money Market 10,000,000.00
Bankers Trust Operating Money Market 12,173,643.06
Interest and Accretion 882,897.27
Total Purchases 33,056,540.33
Redemptions
MidwestOne Operating CD 01/30/2024 01/30/2025 5,000,000.00
GreenState Operating CD 01/26/2024 01/26/2025 5,000,000.00
Federal Home Loan Mortgage Corp Equipment Replacement Fund Agency Bond 08/19/2020 02/14/2025 2,000,000.00
Federal National Mortgage Assoc Operating Agency Bond 10/18/2024 01/17/2025 5,000,000.00
Federal Home Loan Bank Operating Agency Bond 11/13/2024 02/13/2025 5,000,000.00
MidwestOne Operating Money Market 10,000,000.00
Expenses 5,346.53
Total Redemptions 32,005,346.53
Investments on Hand at 3/31/25 288,052,412.07$
City of Iowa City
Investment Activity
For The Quarter Ended March 31, 2025
Institution Investment Purchase Maturity Investment
Name Fund Type Date Date Amount
Federal Home Loan Bank Equipment Replacement Fund Agency Bond 02/17/2021 02/17/2026 2,000,000.00
Federal Home Loan Bank General Fund Reserve Agency Bond 10/02/2020 09/22/2025 1,999,689.26
Federal Home Loan Bank General Fund Reserve Agency Bond 01/14/2021 01/14/2026 2,000,000.00
Federal Home Loan Bank General Fund Reserve Agency Bond 01/28/2021 01/28/2026 2,000,000.00
Federal Home Loan Bank General Fund Reserve Agency Bond 03/30/2021 03/30/2026 2,000,000.00
Federal Home Loan Bank Health Insurance Reserve Agency Bond 08/23/2021 05/23/2025 2,000,000.00
Federal Farm Credit Bank Health Insurance Reserve Agency Bond 09/10/2020 09/10/2040 2,000,000.00
Federal Home Loan Bank Landfill Closure Fund Agency Bond 01/27/2021 07/27/2026 2,000,000.00
Federal Home Loan Bank Landfill Closure Fund Agency Bond 01/29/2021 01/29/2027 2,000,000.00
Federal Home Loan Mortgage Corp Landfill Closure Fund Agency Bond 12/29/2020 12/29/2027 2,000,000.00
Federal Home Loan Mortgage Corp Landfill Closure Fund Agency Bond 12/22/2020 06/22/2029 2,000,000.00
Bankers Trust Operating CD 11/15/2024 11/15/2025 9,000,000.00
Green State Operating CD 07/31/2024 07/31/2025 5,000,000.00
MidWestOne Operating CD 04/22/2024 04/22/2025 10,000,000.00
MidWestOne Operating CD 06/28/2024 06/28/2025 5,000,000.00
MidWestOne Operating CD 08/23/2024 08/23/2025 5,000,000.00
MidWestOne Operating CD 09/16/2024 09/16/2025 5,000,000.00
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 CD 11/07/2024 11/07/2025 5,000,000.00
MidWestOne Operating CD 11/08/2024 11/08/2025 20,000,000.00
MidWestOne Operating CD 02/04/2025 02/04/2026 5,000,000.00
West Bank Operating CD 11/08/2024 11/08/2025 67,000,000.00
CR Bank & Trust Operating CD 12/15/2024 12/16/2025 5,267,997.97
IPAIT Operating CD 02/14/2025 02/13/2026 5,000,000.00
United States Treasury Operating US Gov 11/12/2024 11/15/2025 20,334,924.32
Federal Home Loan Bank Operating Agency Bond 12/19/2024 12/19/2025 10,000,000.00
West Bank Operating Money Mkt ------10,626,249.40
CR Bank & Trust Operating Money Mkt ------11,036,161.62
Bankers Trust Operating Money Mkt ------28,501,339.20
Hills Bank Operating Money Mkt ------101,291.65
IPAIT Operating Money Mkt ------2,275,559.50
MidWestOne Operating Money Mkt ------21,909,199.15
288,052,412.07$