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Home My WebLink AboutFY2023 2nd Qtr Investment ReportCITY OF IOWA CITY QUARTERLY INVESTMENT REPORT October 1, 2022 to December 31, 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 second quarter of this fiscal year had an average return of 4.612%. The City purchased eleven new investments in this quarter. The Federal Funds Rate was up 1.25% at quarter end 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 2.515% and the twelve-month return was 2.786%. 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 2.57%. Investments for this year are $71,870,830 higher than last year. The increase in investments is due to an overall increase in the amount of funds being held by the City. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Percentage of returnCity of Iowa City vs. 6 and 12 Month Treasury Bill City of Iowa City 6 Month T-bill 12 Month T-bill Treasury bills and fed funds are competing investments in the money market. The federal funds rate is highly influential and often has a direct effect on the U.S. economy, because it serves as a base for interest rates offered by various financial and credit institutions to businesses and consumers. The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the FOMC decided to raise the target range for the federal funds rate to 4-1/4 – 4-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the FOMC will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The FOMC is strongly committed to returning inflation to its 2 percent objective. 0.0 1.0 2.0 3.0 4.0 5.0 Interest RateFederal Funds Rate 12/31/22 12/31/21 INVESTMENT INVESTMENT FUND TYPE AMOUNT AMOUNT OPERATING 198,042,992$ 126,172,825$ GENERAL FUND RESERVE 9,998,192$ 9,997,529$ EQUIPMENT RESERVE 10,000,000$ 10,000,000$ 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 234,246,184$ 162,375,354$ 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 December 31, 2022 12/31/22 12/31/21 INVESTMENT INVESTMENT DEPOSITORY INSTITUTION NAME AMOUNT AMOUNT LIMIT MIDWESTONE BANK 65,617,388$ 30,399,400$ 150,000,000$ PIPER JAFFRAY & CO 65,750,269$ 26,799,136$ N/A IOWA PUBLIC AGENCY INVESTMENT TRUST 25,439,721$ 25,046,641$ N/A FIRST INTERSTATE BANK -$ 30,121,844$ 100,000,000$ US BANK 5,000,000$ -$ 65,000,000$ GREEN STATE CREDIT UNION -$ 10,000,000$ 50,000,000$ HILLS BANK & TRUST 100,724$ 99,928$ 25,000,000$ BANKER'S TRUST 1,113,403$ 19,480,046$ 50,000,000$ NXT BANK -$ 925,000$ 10,000,000$ WEST BANK 71,224,679$ -$ 75,000,000$ TOTAL 234,246,184$ 142,871,995$ CITY OF IOWA CITY INVESTMENTS ON HAND LISTING BY INSTITUTION MIDWESTONE BANK PIPER JAFFRAY & CO IOWA PUBLIC AGENCY INVESTMENT TRUST HILLS BANK & TRUST BANKER'S TRUSTWEST BANK City of Iowa City Investments by Institution December 31, 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 1,998,191.91$ 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$ 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 10,133,466.14$ UNITED STATES TREASURY OPERATING T-BILL 8/19/2022 8/10/2023 10,117,212.74$ 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 4,954,449.31$ 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 178,211.51$ BANKERS TRUST OPERATING MMFUND ---9/30/2022 1,113,403.31$ HILLS BANK OPERATING MMFUND ---9/30/2022 100,723.72$ MIDWESTONE BANK OPERATING MMFUND ---9/30/2022 25,617,388.18$ WEST BANK OPERATING MMFUND ---9/30/2022 71,224,678.90$ MidWestOne Bank OPERATING CD 10/12/2022 10/12/2023 5000000 Piper Sandler & Co OPERATING AGCY DISC 10/20/2022 07/20/2023 4,875,694.51 MidWestOne Bank OPERATING CD 11/16/2022 05/16/2023 5,000,000.00 MidWestOne Bank OPERATING CD 11/16/2022 05/16/2023 5,000,000.00 Piper Sandler & Co OPERATING AGCY DISC 11/16/2022 05/12/2023 4,919,915.15 Piper Sandler & Co OPERATING AGCY BOND 12/01/2022 11/30/2023 4,999,771.29 Piper Sandler & Co OPERATING AGCY BOND 12/01/2022 11/27/2023 4,797,246.54 MidWestOne Bank OPERATING CD 12/13/2022 06/13/2023 5,000,000.00 MidWestOne Bank OPERATING CD 12/13/2022 06/13/2023 5,000,000.00 MidWestOne Bank OPERATING CD 12/13/2022 09/13/2023 5,000,000.00 CITY OF IOWA CITY INVESTMENTS ON HAND December 31, 2022 INSTITUTION INVESTMENT PURCHASE MATURITY INVESTMENT NAME FUND TYPE DATE DATE AMOUNT CITY OF IOWA CITY INVESTMENTS ON HAND December 31, 2022 Iowa Public Agency Invt Trust OPERATING AGCY DISC 12/14/2022 12/12/2023 5,010,830.80 234,246,183.99 FUND INVESTMENT PURCHASE MATURITY INVESTMENT INSTITUTION TYPE TYPE DATE DATE AMOUNT INVESTMENTS ON HAND AT 9/30/22 183,231,575.18$ PURCHASES MidWestOne Bank OPERATING CD 10/12/2022 10/12/2023 5,000,000.00$ Piper Sandler & Co OPERATING AGCY DISC 10/20/2022 7/20/2023 4,830,323.00$ MidWestOne Bank OPERATING CD 11/16/2022 5/16/2023 5,000,000.00$ MidWestOne Bank OPERATING CD 11/16/2022 5/16/2023 5,000,000.00$ Piper Sandler & Co OPERATING AGCY DISC 11/16/2022 5/12/2023 4,999,750.00$ Piper Sandler & Co OPERATING AGCY BOND 12/1/2022 11/30/2023 4,891,793.75$ Piper Sandler & Co OPERATING AGCY BOND 12/1/2022 11/27/2023 4,778,200.00$ MidWestOne Bank OPERATING CD 12/13/2022 6/13/2023 5,000,000.00$ MidWestOne Bank OPERATING CD 12/13/2022 6/13/2023 5,000,000.00$ MidWestOne Bank OPERATING CD 12/13/2022 9/13/2023 5,000,000.00$ Iowa Public Agency Invt Trust OPERATING AGCY DISC 12/14/2022 12/12/2023 4,999,082.84$ Bankers Trust OPERATING CASH 175,177.00$ Bankers Trust OPERATING CASH 329,440.28$ IPAIT OPERATING CASH 917.16$ Interest and Accretion 1,021,448.63$ TOTAL PURCHASES 56,026,132.66$ REDEMPTIONS Crédit Agricole Corporate and Investment Bank Soci OPERATING CP 1/10/2022 10/7/2022 5,000,000.00$ BANKERS TRUST OPERATING CASH 5,500.00$ 42.80$ Expenses 5,961.04$ TOTAL REDEMPTIONS 5,011,503.84$ INVESTMENTS ON HAND AT 12/31/22 234,246,204.00$ CITY OF IOWA CITY INVESTMENT ACTIVITY FOR THE QUARTER ENDED DECEMBER 31, 2022