HomeMy WebLinkAboutFY2021 3rd Qtr Investment ReportCITY OF IOWA CITY
QUARTERLY
INVESTMENT REPORT
January 1, 2021
to
March 31, 2021
Finance Department
Prepared by:
Brian Cover
Senior Accountant
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 0.336%. Rates on new investment purchases in our operating cash portfolio
for the third quarter were 125 basis points lower than investments purchased at this time last
year. The decrease is due to the federal reserve target rate remaining at 0.25%.
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 0.116% and the twelve-month return was 0.127%. 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 0.461 %.
Investments for this year are $69,890,569 lower than last year. The decrease in investments is
due to the $72,682,032 increase from $13,208,177 to $85,890,209 in cash in the city's checking
account this year.
City of Iowa City vs. 6 and 12 Month Treasury Bill
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—City of Iowa City —6 Month T-bill ---!kr12 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 funds rate is the interest rate at which banks lend to each other. In the March 17th
meeting of the Federal Open Market Committee, the Committee decided to maintain the target
range for the federal funds rate at 0.25 percent due to the threat the coronavirus poses to the
economic activity. The Committee expects it will be appropriate to maintain this target rate until
labor market conditions have reached levels consistent with the Committee's assessments of
maximum employment and inflation has risen to 2 percent and is on track to moderately exceed
2 percent for some time. The Committee will continue to monitor the implications of incoming
information for the economic outlook.
W
'i s
Federal Funds Rate
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City of Iowa City
Investments by Institution
March 31, 2021
GREEN STATE CREDIT UNION
NXTBANK
Y
GREAT WESTERN BANK\\\\
IOWA PUBLIC AGENCY INVESTMENT TRUST
CITY OF IOWA CITY
INVESTMENTS ON HAND
LISTING BY INSTITUTION
INSTITUTION NAME
MIDWESTONE BANK
PIPER SANDLER & CO
IOWA PUBLIC AGENCY INVESTMENT TRUST
GREAT WESTERN BANK
NXT BANK
GREEN STATE CREDIT UNION
HILLS BANK & TRUST
BANKER'S TRUST
CEDAR RAPIDS BANK & TRUST
TOTAL
BANK
MIDWESTONEBANK
PIPER-DEER.00
IOWA PUBLIC AGENCY INYESTMENTTRUST
GRBAT WESTERN BANK
NKT BANK
GREEN STATE CREDO UNION
• NIEES BANK. TRUST
• BANKER'S TRUST
3/31/21
3/31/20
INVESTMENT
INVESTMENT
DEPOSITORY
AMOUNT
AMOUNT
LIMIT
$
35,405,812
$
80,270,863
$ 100,000,000
$
35,796,675
$
32,564,474
N/A
$
25,046,643
$
27,610,252
N/A
$
30,149,556
$
29,971,072
$ 100,000,000
$
925,000
$
-
$ 65,000,000
$
5,000,000
$
-
$ 50,000,000
$
100,051
$
2,099,552
$ 25,000,000
$
566,758
$
13,364,850
$ 50,000,000
$
-
$
17,000,000
$ 50,000,000
$ 132,990,494
$ 202,881,063
HEALTH INSURAN,
EQUIPMENT RES
a GENERAL FUND RESERVE_.
City of Iowa City
Investments by Fund
March 31, 2021
■ SEWER RESERVE
■ WATER RESERVE
CITY OF IOWA CITY
INVESTMENTS ON HAND
SUMMARY BY FUND
FUND TYPE
OPERATING
GENERAL FUND RESERVE
EQUIPMENT RESERVE
HEALTH INSURANCE RESERVE
LANDFILL RESERVE
LANDFILL CLOSURE
SEWER RESERVE
WATER RESERVE
TOTAL
• OPERATING
• GENERAL FUND RESERVE
• EQUIPMENT RESERVE
• HEALTH INSURANCE RESERVE
• LANDFILL RESERVE
LANDFILL CLOSURE
• SEWER RESERVE
• WATER RESERVE
OPERATING
3/31/21
3/31/20
INVESTMENT
INVESTMENT
AMOUNT
AMOUNT
$ 101,263,465
$
182,652,868
$
7,997,029
$
-
$
6,000,000
$
5,998,195
$
4,000,000
$
4,000,000
$
2,000,000
$
2,500,000
$
6,000,000
$
2,000,000
$
3,525,000
$
3,525,000
$
2,205,000.
$
2,205,000
$ 132,990,494
$ 202,881,063
• OPERATING
• GENERAL FUND RESERVE
• EQUIPMENT RESERVE
• HEALTH INSURANCE RESERVE
• LANDFILL RESERVE
LANDFILL CLOSURE
• SEWER RESERVE
• WATER RESERVE
OPERATING
CITY OF IOWA CITY
INVESTMENTS ON HAND
03/31/2021
PURCHASE
MATURITY
ISSUER
TYPE
DATE
DATE
AMOUNT
MIDWESTONE BANK
MMFUND
---
03/31/2021
$
10,405,811.77
HILLS BANK
MMFUND
---
03/31/2021
$
100,050.97
BANKERS TRUST
MMFUND
---
03/31/2021
$
566,757.97
GREAT WESTERN BANK
MMFUND
---
03/31/2021
$
30,149,555.56
IPAIT
MMFUND
---
03/31/2021
$
46,642.82
GREEN STATE CREDIT UNION
CD
04/02/2020
04/02/2021
$
5,000,000.00
IPAIT
CD
04/14/2020
04/14/2021
$
5,000,000.00
MIDWESTONE BANK
CD
05/13/2020
05/13/2021
$
5,000,000.00
MIDWESTONE BANK
CD
06/24/2020
06/24/2021
$
5,000,000.00
NXT BANK
CD
09/08/2020
07/08/2021
$
925,000.00
IPAIT
CD
10/16/2020
07/15/2021
$
10,000,000.00
MIDWESTONE BANK
CD
07/21/2020
07/21/2021
$
5,000,000.00
MIDWESTONE BANK
CD
08/17/2020
08/17/2021
$
5,000,000.00
NATIXIS, NEW YORK BRANCH
CP
03/24/2021
12/14/2021
$
4,994,645.84
IPAIT
CD
10/16/2020
01/14/2022
$
10,000,000.00
MIDWESTONE BANK
CD
03/11/2021
03/04/2022
$
5,000,000.00
FEDERAL HOME LOAN MORTGAGE CORP
AGCY BOND
07/14/2020
07/14/2023
$
2,205,000.00
FEDERAL NATIONAL MORTGAGE ASSOCIATION
AGCY BOND
07/28/2020
07/28/2023
$
2,600,000.00
FEDERAL HOME LOAN MORTGAGE CORP
AGCY BOND
11/17/2020
05/17/2024
$
2,000,000.00
FEDERAL FARM CREDIT BANKS FUNDING CORP
AGCY BOND
12/23/2020
12/23/2024
$
2,000,000.00
FEDERAL HOME LOAN MORTGAGE CORP
AGCY BOND
08/19/2020
02/14/2025
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
10/02/2020
09/22/2025
$
1,997,028.91
FEDERAL HOME LOAN BANKS
AGCY BOND
01/14/2021
01/14/2026
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
01/28/2021
01/28/2026
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
02/17/2021
02/17/2026
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
03/30/2021
03/30/2026
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
01/27/2021
07/27/2026
$
2,000,000.00
FEDERAL HOME LOAN BANKS
AGCY BOND
01/29/2021
01/29/2027
$
2,000,000.00
FEDERAL NATIONAL MORTGAGE ASSOCIATION
AGCY BOND
12/29/2020
12/29/2027
$
2,000,000.00
FEDERAL NATIONAL MORTGAGE ASSOCIATION
AGCY BOND
12/22/2020
06/22/2029
$
2,000,000.00
FEDERAL FARM CREDIT BANKS FUNDING CORP
AGCY BOND
09/10/2020
09/10/2040
$
2,000,000.00
$
132,990,493.84
CITY OF IOWA CITY
INVESTMENT ACTIVITY
FOR THE QUARTER ENDED MARCH 31, 2021
FUND INVESTMENT PURCHASE MATURITY INVESTMENT INTEREST
INSTITUTION TYPE TYPE DATE DATE AMOUNT RATE
INVESTMENTS ON HAND AT 12/31/2020
$142,871,994.83
PURCHASES 01/01/21 TO 3/31/21
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
14 -Jan -21
14 -Jan -26
$
2,000,000.00
0.225
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
25 -Jan -21
28 -Jan -26
$
2,000,000.00
0.520
PIPER SANDLER & CO -BANKERS TRUST
LANDFILL CLOSURE FUND
NOTE
22 -Jan -21
29 -Jan -27
$
2,000,000.00
0.500
PIPER SANDLER & CO -BANKERS TRUST
LANDFILL REPLACEMENT RESERVE
NOTE
25 -Jan -21
27 -Jul -26
$
2,000,000.00
0.352
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
2,000,000.00
0.110
PIPER SANDLER & CO -BANKERS TRUST
EQUIPMENT REPLACEMENT FUND
NOTE
17 -Feb -21
17 -Feb -26
$
2,000,000.00
0.300
MIDWESTONE BANK
OPERATING
CD
04 -Mar -21
04 -Mar -22
$
5,000,000.00
0.350
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
24 -Mar -21
14 -Dec -21
$
4,994,479.17
0.150
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
30 -Mar -21
30 -Mar -26
$
2,000,000.00
0.550
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
2,000,000.00
0.050
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
2,000,000.00
0.050
INTEREST AND ACCRETION
$
121,941.43
TOTAL PURCHASES
$ 28,116,420.60
REDEMPTIONS 01/01/21 TO 03/31/21
PIPER SANDLER & CO -BANKERS TRUST
LANDFILL REPLACEMENT RESERVE
NOTE
21 -Jul -20
15 -Jul -25
$
2,000,000.00
0.631
PIPER SANDLER & CO -BANKERS TRUST
LANDFILL CLOSURE FUND
NOTE
28 -Jan -20
28 -Jan -26
$
2,000,000.00
2.020
BANKERS TRUST
OPERATING
SAV
02 -May -17
14 -Jan -21
$
2,000,000.00
0.110
BANKERS TRUST
OPERATING
SAV
02 -May -17
27 -Jan -21
$
2,000,000.00
0.110
BANKERS TRUST
OPERATING
SAV
02 -May -17
29 -Jan -21
$
2,000,000.00
0.110
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
10,000,000.00
0.110
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
2,000,000.00
0.110
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
17 -Mar -20
24 -Mar -23
$
2,000,000.00
1.000
PIPER SANDLER & CO -BANKERS TRUST
OPERATING
NOTE
23 -Mar -20
30 -Mar -22
$
2,000,000.00
1.000
GREEN STATE CREDIT UNION
OPERATING
CD
16 -Apr -20
16 -Mar -21
$
5,000,000.00
0.860
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
4,994,479.17
0.050
BANKERS TRUST
OPERATING
SAV
02 -May -17
$
2,000,000.00
0.050
EXPENSES
$
3,442.42
0.050
TOTAL REDEMPTIONS
$ 37,997,921.59
INVESTMENTS ON HAND AT 03/31/21
$132,990,493.84