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FY2021 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 3.0 2.5 c 2.0 f/ 0 ago Z.001 . 4j 1.5 1.0 0.5 -- a 0.0 I �yy ;yy ,yob ,yy ,y� ti� Illy I o�mac; ai —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 tO tO ,`O t2l ^O O O O O 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