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Home My WebLink AboutFY2023 1st Qtr Investment ReportCITY OF IOWA CITY QUARTERLY INVESTMENT REPORT July 1, 2022 to September 30, 2022 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 first quarter of this fiscal year had an average return of 3.629%. The City purchased five new investments in this quarter. The Federal Funds Rate was up 1.5% at quarter end to 3.08%. 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 1.415% and the twelve-month return was 1.696%. 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 1.71%. Investments for this year are $20,933,926 higher than last year. The increase in investments is due to an overall increase in the amount of funds being held by the City. 0.0 0.5 1.0 1.5 2.0 2.5 Percentage of returnCity of Iowa City vs. 6 and 12 Month Treasury Bill City of Iowa City 6 Month T-bill 12 Month T-bill Treasury bills and fed funds are competing investments in the money market. The federal funds rate is highly influential and often has a direct effect on the U.S. economy, because it serves as a base for interest rates offered by various financial and credit institutions to businesses and consumers. The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the FOMC decided to raise the target range for the federal funds rate from 3 to 3-1/4 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the FOMC will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The FOMC is strongly committed to returning inflation to its 2 percent objective. 0.0 1.0 2.0 3.0 Interest RateFederal Funds Rate 9/30/22 9/30/21 INVESTMENT INVESTMENT FUND TYPE AMOUNT AMOUNT OPERATING 147,028,550$ 130,095,288$ GENERAL FUND RESERVE 9,998,025$ 9,997,361$ EQUIPMENT RESERVE 10,000,000$ 6,000,000$ HEALTH INSURANCE RESERVE 6,000,000$ 6,000,000$ LANDFILL REPLACEMENT RESERVE 2,000,000$ 2,000,000$ LANDFILL CLOSURE 6,000,000$ 6,000,000$ SEWER RESERVE -$ -$ WATER RESERVE 2,205,000$ 2,205,000$ TOTAL 183,231,575$ 162,297,649$ CITY OF IOWA CITY INVESTMENTS ON HAND SUMMARY BY FUND OPERATING GENERAL FUND RESERVE EQUIPMENT RESERVE HEALTH INSURANCE RESERVE LANDFILL REPLACEMENT RESERVE LANDFILL CLOSURE SEWER RESERVE WATER RESERVE City of Iowa City Investments by Fund September 30, 2022 9/30/22 9/30/21 INVESTMENT INVESTMENT DEPOSITORY INSTITUTION NAME AMOUNT AMOUNT LIMIT MIDWESTONE BANK 35,520,918$ 25,418,861$ 150,000,000$ PIPER JAFFRAY & CO 51,110,138$ 42,198,914$ N/A IOWA PUBLIC AGENCY INVESTMENT TRUST 20,273,834$ 10,097,844$ N/A FIRST INTERSTATE BANK -$ 25,170,293$ 100,000,000$ US BANK 5,000,000$ -$ 65,000,000$ GREEN STATE CREDIT UNION -$ -$ 50,000,000$ HILLS BANK & TRUST 100,662$ 100,302$ 25,000,000$ BANKER'S TRUST 563,667$ 4,253,330$ 50,000,000$ NXT BANK -$ -$ 10,000,000$ WEST BANK 70,662,356$ 55,058,105$ 75,000,000$ TOTAL 183,231,575$ 162,297,649$ 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 BANKER'S TRUST WEST BANK City of Iowa City Investments by Institution September 30, 2022 INSTITUTION INVESTMENT PURCHASE MATURITY INVESTMENT NAME FUND TYPE DATE DATE AMOUNT FEDERAL HOME LOAN MORTGAGE CORP WATER RESERVES AGCY BOND 7/14/2020 7/14/2023 2,205,000.00$ FEDERAL HOME LOAN MORTGAGE CORP EQUIPMENT REPLACEMENT FUNDAGCY BOND 8/19/2020 2/14/2025 2,000,000.00$ FEDERAL FARM CREDIT BANKS FUNDING CHEALTH INSURANCE RESERVE AGCY BOND 9/10/2020 9/10/2040 2,000,000.00$ FEDERAL HOME LOAN BANKS GENERAL FUND RESERVE AGCY BOND 10/2/2020 9/22/2025 2,000,000.00$ FEDERAL HOME LOAN MORTGAGE CORP HEALTH INSURANCE RESERVE AGCY BOND 11/17/2020 5/17/2024 2,000,000.00$ FEDERAL NATIONAL MORTGAGE ASSOCIATLANDFILL CLOSURE FUND AGCY BOND 12/22/2020 6/22/2029 2,000,000.00$ FEDERAL FARM CREDIT BANKS FUNDING CEQUIPMENT REPLACEMENT FUNDAGCY BOND 12/23/2020 12/23/2024 2,000,000.00$ FEDERAL NATIONAL MORTGAGE ASSOCIATLANDFILL CLOSURE FUND AGCY BOND 12/29/2020 12/29/2027 2,000,000.00$ FEDERAL HOME LOAN BANKS GENERAL FUND RESERVE AGCY BOND 1/14/2021 1/14/2026 1,998,024.72$ FEDERAL HOME LOAN BANKS LANDFILL REPLACEMENT FUND AGCY BOND 1/27/2021 7/27/2026 2,000,000.00$ FEDERAL HOME LOAN BANKS GENERAL FUND RESERVE AGCY BOND 1/28/2021 1/28/2026 2,000,000.00$ FEDERAL HOME LOAN BANKS LANDFILL CLOSURE FUND AGCY BOND 1/29/2021 1/29/2027 2,000,000.00$ FEDERAL HOME LOAN BANKS EQUIPMENT REPLACEMENT FUNDAGCY BOND 2/17/2021 2/17/2026 2,000,000.00$ FEDERAL HOME LOAN BANKS GENERAL FUND RESERVE AGCY BOND 3/30/2021 3/30/2026 2,000,000.00$ FEDERAL HOME LOAN BANKS GENERAL FUND RESERVE AGCY BOND 8/9/2021 8/9/2024 2,000,000.00$ FEDERAL HOME LOAN BANKS HEALTH INSURANCE RESERVE AGCY BOND 8/23/2021 5/23/2025 2,000,000.00$ FEDERAL HOME LOAN BANKS EQUIPMENT REPLACEMENT FUNDAGCY BOND 11/24/2021 11/24/2023 4,000,000.00$ Crédit Agricole Corporate and Investment Bank OPERATING CP 1/10/2022 10/7/2022 4,999,750.00$ US Bank OPERATING CD 4/8/2022 4/7/2023 5,000,000.00$ UNITED STATES TREASURY OPERATING US GOV 4/11/2022 4/15/2024 10,080,510.57$ UNITED STATES TREASURY OPERATING T-BILL 8/19/2022 8/10/2023 10,036,957.40$ MidWestOne Bank OPERATING CD 8/23/2022 8/23/2023 5,000,000.00$ FEDERAL HOME LOAN BANKS OPERATING AGCY DISC 9/16/2022 3/31/2023 4,907,363.19$ MIDWESTONE BANK OPERATING CD 9/19/2022 6/12/2023 5,000,000.00$ FEDERAL HOME LOAN BANKS OPERATING AGCY BOND 9/29/2022 9/29/2023 5,000,000.00$ IPAIT OPERATING MMFUND ---9/30/2022 156,366.31$ BANKERS TRUST OPERATING MMFUND ---9/30/2022 563,667.36$ HILLS BANK OPERATING MMFUND ---9/30/2022 100,661.65$ MIDWESTONE BANK OPERATING MMFUND ---9/30/2022 25,520,917.86$ WEST BANK OPERATING MMFUND ---9/30/2022 70,662,356.09$ 183,231,575.15 CITY OF IOWA CITY INVESTMENTS ON HAND September 30, 2022 FUND INVESTMENT PURCHASE MATURITY INVESTMENT INSTITUTION TYPE TYPE DATE DATE AMOUNT INVESTMENTS ON HAND AT 6/30/22 162,681,905.72$ PURCHASES Piper Sandler Operating FHLB 9/16/2022 3/31/2023 4,899,686.11$ MidwestOne Bank Operating CD 9/19/2022 6/12/2023 5,000,000.00$ IPAIT Operating T-Bill 8/19/2022 8/10/2023 9,999,446.76$ MidwestOne Bank Operating CD 8/23/2022 8/23/2023 5,000,000.00$ Piper Sandler Operating FHLB 9/29/2022 9/29/2023 5,000,000.00$ Bankers Trust Operating Money Mkt 100,293.89$ West Bank Operating Money Mkt 15,172,198.00$ MidwestOne Bank Operating Money Mkt 10,000,000.00$ IPAIT Operating Money Mkt 514.24$ Interest and Accretion 555,269.98$ TOTAL PURCHASES 55,727,408.98$ REDEMPTIONS Piper Sandler OPERATING Commercial Paper 12/14/2021 9/9/2022 5,000,000.00$ MidwestOne Bank OPERATING CD 8/19/2021 8/19/2022 5,000,000.00$ First Interstate Bank OPERATING Money Mkt 25,172,198.00$ Expenses 5,541.52$ TOTAL REDEMPTIONS 35,177,739.52$ INVESTMENTS ON HAND AT 9/30/22 183,231,575.18$ CITY OF IOWA CITY INVESTMENT ACTIVITY FOR THE QUARTER ENDED SEPTEMBER 30, 2022