HomeMy WebLinkAboutFY2023 3rd Qtr Investment ReportCITY OF IOWA CITY
QUARTERLY
INVESTMENT REPORT
January 1, 2023
to
March 31, 2023
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 third quarter of this fiscal year had an
average return of 4.721%. The City purchased three new investments in this quarter. The
Federal Funds Rate was up .32% at quarter end to 4.65%.
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 3.59% and the twelve-month return was 3.73%. 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 3.295%.
Investments for this year are $93,191,359 higher than last year. The increase in investments is
due to investing more of the City’s cash on hand as interest rates have increased.
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City of Iowa City vs. 6 and 12 Month Treasury Bill
City of Iowa City 6 Month T‐bill 12 Month T‐bill
Treasury bills and fed funds are competing investments in the money market. The federal funds
rate is highly influential and often has a direct effect on the U.S. economy, because it serves as
a base for interest rates offered by various financial and credit institutions to businesses and
consumers.
The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. In support of these goals, the FOMC
decided to raise the target range for the federal funds rate to 4-3/4 – 5 percent. In addition, the
FOMC will continue reducing its holdings of Treasury securities and agency debt and agency
mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal
Reserve's Balance Sheet that were issued in previously announced plans. The FOMC is
strongly committed to returning inflation to its 2 percent objective.
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Federal Funds Rate
3/31/23 3/31/22
INVESTMENT INVESTMENT DEPOSITORY
INSTITUTION NAME AMOUNT AMOUNT LIMIT
MIDWESTONE BANK 70,778,414$ 20,431,856$ 150,000,000$
PIPER JAFFRAY & CO 60,962,299$ 46,188,109$ N/A
IOWA PUBLIC AGENCY INVESTMENT TRUST 35,671,806$ 10,135,463$ N/A
FIRST INTERSTATE BANK -$ 25,171,444$ 100,000,000$
US BANK 5,000,000$ -$ 65,000,000$
GREEN STATE CREDIT UNION -$ -$ 50,000,000$
HILLS BANK & TRUST 100,787$ 100,552$ 25,000,000$
BANKER'S TRUST 6,293,282$ 358,107$ 50,000,000$
NXT BANK -$ -$ 10,000,000$
WEST BANK 71,910,819$ 55,140,517$ 75,000,000$
TOTAL 250,717,407$ 157,526,048$
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
March 31, 2023
3/31/23 3/31/22
INVESTMENT INVESTMENT
1/1/2023 AMOUNT AMOUNT
OPERATING 214,514,052$ 121,323,356$
GENERAL FUND RESERVE 9,998,355$ 9,997,692$
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 250,717,407$ 157,526,048$
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
March 31,2023
INSTITUTION INVESTMENT PURCHASE MATURITY INVESTMENT
NAME FUND TYPE DATE DATE AMOUNT
FEDERAL HOME LOAN MORTGAGE CORP WATER RESERVES AGCY BOND 7/14/2020 1/1/2023 2,205,000.00$
FEDERAL HOME LOAN MORTGAGE CORP EQUIPMENT REPLACEMENT FUND AGCY BOND 8/19/2020 2/14/2025 2,000,000.00$
FEDERAL FARM CREDIT BANKS FUNDING CORP HEALTH 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 ASSOCIATION LANDFILL CLOSURE FUND AGCY BOND 12/22/2020 6/22/2029 2,000,000.00$
FEDERAL FARM CREDIT BANKS FUNDING CORP EQUIPMENT REPLACEMENT FUND AGCY BOND 12/23/2020 12/23/2024 2,000,000.00$
FEDERAL NATIONAL MORTGAGE ASSOCIATION LANDFILL 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 1,998,355.45$
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 FUND AGCY 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 FUND AGCY 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 10,185,270.50$
UNITED STATES TREASURY OPERATING T-BILL 8/19/2022 8/10/2023 10,195,723.39$
MidWestOne Bank OPERATING CD 8/23/2022 8/23/2023 5,000,000.00$
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 --- 3/31/2023 180,419.88$
BANKERS TRUST OPERATING MMFUND --- 3/31/2023 6,293,281.79$
HILLS BANK OPERATING MMFUND --- 3/31/2023 100,787.20$
MIDWESTONE BANK OPERATING MMFUND --- 3/31/2023 25,778,414.27$
WEST BANK OPERATING MMFUND --- 3/31/2023 71,910,819.24$
MidWestOne Bank OPERATING CD 10/12/2022 10/12/2023 5,000,000.00$
Piper Sandler & Co OPERATING AGCY DISC 10/20/2022 07/20/2023 4,931,631.98$
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 4,974,935.28$
Piper Sandler & Co OPERATING AGCY BOND 12/01/2022 11/30/2023 4,999,833.10$
Piper Sandler & Co OPERATING AGCY BOND 12/01/2022 11/27/2023 4,852,542.94$
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$
Iowa Public Agency Invt Trust OPERATING AGCY DISC 12/14/2022 12/12/2023 5,069,570.59$
MidWestOne Bank OPERATING CD 27-Jan-23 27-Jan-24 5,000,000.00$
IPAIT OPERATING AGCY BOND 30-Jan-23 24-Jan-24 5,040,152.89$
IPAIT OPERATING CD 31-Mar-23 30-Apr-23 5,000,668.47$
250,717,406.96$
CITY OF IOWA CITY
INVESTMENTS ON HAND
March 31, 2023
FUND INVESTMENT PURCHASE MATURITY INVESTMENT
INSTITUTION TYPE TYPE DATE DATE AMOUNT
INVESTMENTS ON HAND AT 3/31/23 234,246,204.00$
PURCHASES
MidWestOne Bank OPERATING CD 1/27/2023 1/27/2024 5,000,000.00$
IPAIT OPERATING AGCY BOND 1/30/2023 1/24/2024 4,999,653.98$
IPAIT OPERATING CD 3/31/2023 4/30/2023 5,000,000.00$
IPAIT OPERATING MONEY MARKET 346.02$
BANKERS TRUST OPERATING MONEY MARKET 5,000,000.00$
Interest and Accretion 1,479,020.02$
TOTAL PURCHASES 21,479,020.02$
REDEMPTIONS
FEDERAL HOME LOAN BANKS OPERATING AGCY DISC 9/16/2022 3/31/2023 5,000,000.00$
Expenses 7,817.06$
TOTAL REDEMPTIONS 5,007,817.06$
INVESTMENTS ON HAND AT 3/31/23 250,717,406.96$
CITY OF IOWA CITY
INVESTMENT ACTIVITY
FOR THE QUARTER ENDED MARCH 31, 2023