HomeMy WebLinkAboutFY2023 4th Qtr Investment ReportCity of Iowa City
Quarterly
Investment Report
April 1, 2023
to
June 30, 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 5.025%. The City purchased five new investments in this quarter. The
Federal Funds Rate was up 9.25% at quarter end to 5.08%.
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 4.24% and the twelve-month return was 4.25%. 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 3.94%.
Investments for this year are $88,570,682 higher than last year. The increase in investments is
due to investing more of the City’s cash on hand as interest rates have increased.
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City of Iowa City vs. 6 and 12 Month Treasury Bill
City of Iowa City 6 Month T-bill 12 Month T-bill
Treasury bills and fed funds are competing investments in the money market. The federal funds
rate is highly influential and often has a direct effect on the U.S. economy, because it serves as
a base for interest rates offered by various financial and credit institutions to businesses and
consumers.
The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee
decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Holding the
target range steady at this meeting allows the Committee to assess additional information and
its implications for monetary policy. In addition, the FOMC will continue reducing its holdings of
Treasury securities and agency debt and agency mortgage-backed securities, as described in
the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in
previously announced plans. The FOMC is strongly committed to returning inflation to its 2
percent objective.
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Federal Funds Rate
6/30/23 6/30/22
Investment Investment Depository
Institution Name Amount Amount Limit
MidwestOne Bank 66,036,346$ 20,447,166$ 150,000,000$
Piper Jaffray & Co.71,100,061$ 46,195,858$ N/A
Iowa Public Agency Investment Trust 41,048,794$ 10,182,733$ N/A
First Interstate Bank -$ 25,172,048$ 100,000,000$
US Bank -$ 5,000,000$ 65,000,000$
Green State Credit Union -$ -$ 50,000,000$
Hills Bank & Trust 100,850$ 100,604$ 25,000,000$
Bankers Trust 279,570$ 395,682$ 50,000,000$
NXT Bank -$ -$ 10,000,000$
West Bank 72,686,968$ 55,187,815$ 75,000,000$
Total 251,252,588$ 162,681,906$
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
Bankers TrustWest Bank
City of Iowa City
Investments by Institution
June 30, 2023
6/30/23 6/30/22
Investment Investment
Fund Type Amount Amount
Operating 215,049,068$ 126,479,048$
General Fund Reserve 9,998,521$ 9,997,858$
Equipment Reservev 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 251,252,588$ 162,681,906$
City of Iowa City
Investments On Hand
Summary By Fund
Operating
General Fund Reserve
Equipment Reservev
Health Insurance
Reserve
Landfill Replacement
Reserve
Landfill Closure
Sewer Reserve
Water Reserve
City of Iowa City
Investments by Fund
June 30,2023
Fund Investment Purchase Maturity Investment
Institution Type Type Date Date Amount
Investments on Hand at 6/30/23 250,717,406.96$
Purchases
MidWestOne Bank Operating CD 6/13/2023 6/13/2024 10,000,000.00$
Federal Home Loan Operating Agency Bond 5/25/2023 5/24/2024 5,000,000.00$
MidWestOne Bank Operating CD 5/16/2023 5/16/2024 10,000,000.00$
CRBT/IPAIT Operating CD ROLLING 5,000,000.00$
Bankers Trust Operating Money Market 3,800,000.00$
Federal Home Loan Operating Agency Bond 4/14/2023 4/12/2024 10,000,000.00$
Interest and Accretion 1,742,473.17$
Total Purchases 45,542,473.17$
Redemptions
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$
MidWestOne Bank Operating CD 09/15/2022 06/12/2023 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 06/13/2023 5,000,000.00$
Piper Sandler Companies Operating Fed Home Loan 11/16/2022 05/12/2023 5,000,000.00$
Bankers Trust Operating Money Market 10,000,000.00$
US Bank Operating CD 04/08/2022 04/07/2023 5,000,000.00$
Expenses 7,291.76$
Total Redemptions 45,007,291.76$
Investments on Hand at 6/30/22 251,252,588.37$
City of Iowa City
Investment Activity
For The Quarter Ended June 30, 2023
Institution Investment Purchase Maturity Investment
Name Fund Type Date Date Amount
IPAIT Operating Money Market ---6/30/2023 202,252.55$
Bankers Trust Operating Money Market ---6/30/2023 279,569.60$
Hills Bank Operating Money Market ---6/30/2023 100,850.03$
MidWestOne Bank Operating Money Market ---6/30/2023 26,036,345.72$
West Bank Operating Money Market ---6/30/2023 72,686,967.67$
IPAIT Operating CD 3/31/2023 6/30/2023 10,104,252.49$
Federal Home Loan Mortgage Corp Water Reserves Agency Bond 7/14/2020 7/14/2023 2,205,000.00$
Piper Sandler & Co Operating Agency Discoun 10/20/2022 7/20/2023 4,988,190.98$
United States Treasury Operating T-Bill 8/19/2022 8/10/2023 10,275,106.38$
MidWestOne Bank Operating CD 8/23/2022 8/23/2023 5,000,000.00$
MidWestOne Bank Operating CD 12/13/2022 9/13/2023 5,000,000.00$
Federal Home Loan Banks Operating Agency Bond 9/29/2022 9/29/2023 5,000,000.00$
MidWestOne Bank Operating CD 10/12/2022 10/12/2023 5,000,000.00$
Federal Home Loan Banks Equipment Replacement Fund Agency Bond 11/24/2021 11/24/2023 4,000,000.00$
Piper Sandler & Co Operating Agency Bond 12/1/2022 11/27/2023 4,908,453.74$
Piper Sandler & Co Operating Agency Bond 12/1/2022 11/30/2023 4,999,895.60$
Iowa Public Agency Invt Trust Operating Agency Discoun 12/14/2022 12/12/2023 5,128,963.04$
IPAIT Operating Agency Bond 1/30/2023 1/24/2024 5,100,569.29$
MidWestOne Bank Operating CD 1/27/2023 1/27/2024 5,000,000.00$
United States Treasury Operating US Gov 4/11/2023 4/12/2024 10,000,000.00$
United States Treasury Operating US Gov 4/11/2022 4/15/2024 10,237,650.46$
MidWestOne Bank Operating CD 5/16/2023 5/16/2024 10,000,000.00$
Federal Home Loan Mortgage Corp Health Insurance Reserve Agency Bond 11/17/2020 5/17/2024 2,000,000.00$
Federal Home Loan Banks Operating Agency Bond 5/25/2023 5/24/2024 5,000,000.00$
MidWestOne Bank Operating CD 6/13/2023 6/13/2024 10,000,000.00$
Federal Home Loan Banks General Fund Reserve Agency Bond 8/9/2021 8/9/2024 2,000,000.00$
Federal Farm Credit Banks Funding Corp Equipment Replacement Fund Agency Bond 12/23/2020 12/23/2024 2,000,000.00$
Federal Home Loan Mortgage Corp Equipment Replacement Fund Agency Bond 8/19/2020 2/14/2025 2,000,000.00$
Federal Home Loan Banks Health Insurance Reserve Agency Bond 8/23/2021 5/23/2025 2,000,000.00$
Federal Home Loan Banks General Fund Reserve Agency Bond 10/2/2020 9/22/2025 1,998,520.82$
Federal Home Loan Banks General Fund Reserve Agency Bond 1/14/2021 1/14/2026 2,000,000.00$
Federal Home Loan Banks General Fund Reserve Agency Bond 1/28/2021 1/28/2026 2,000,000.00$
Federal Home Loan Banks Equipment Replacement Fund Agency Bond 2/17/2021 2/17/2026 2,000,000.00$
Federal Home Loan Banks General Fund Reserve Agency Bond 3/30/2021 3/30/2026 2,000,000.00$
Federal Home Loan Banks Landfill Replacement Fund Agency Bond 1/27/2021 7/27/2026 2,000,000.00$
Federal Home Loan Banks Landfill Closure Fund Agency Bond 1/29/2021 1/29/2027 2,000,000.00$
Federal National Mortgage Association Landfill Closure Fund Agency Bond 12/29/2020 12/29/2027 2,000,000.00$
Federal National Mortgage Association Landfill Closure Fund Agency Bond 12/22/2020 6/22/2029 2,000,000.00$
Federal Farm Credit Banks Funding Corp Health Insurance Reserve Agency Bond 9/10/2020 9/10/2040 2,000,000.00$
251,252,588.37$
City of Iowa City
Investments On Hand
June 30, 2023