04-05-2022 Investment Policy ResolutionInvestment Policy
Proposed 2022 update to Investment Policy
City Council Meeting
April 5, 2022
You're getting $1 million
what do you do with it?
Purpose
Section I. Purpose of the policy:
• City Council"s guidance to staff
• Assurance to taxpayers of safety
• Further evidence of an increasingly
well -managed city
Policy Priorities
1. SAFETY
2. LIQUIDITY
LQw
3. YIELD
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$201000100C
$Q
Our Investment Story
do
re�enUe
e mes �n
a -.099,00-
■Investments (yield) ❑ LGIP (liquidity) El Checking (safety)
Which Cash?
Spending is restricted by fund,
authorized in adopted budget
Unspent Balances, are pooled,
invested, earn interest
It has to still be there when
needed
General Fund
Transportation Cap
Fleet
REET
Info Sys
Dow ntow n Dev Cap
Utility Tax
Health Self Ins
Surface Water Cap
Strategic Reserve
SWM
Buildings
Traf f is Safety
Parks Cap
Solid Waste
Lodging Tax
Path & Trails
Community Center
Prop 1 Utility Tax
Dumas Bay
Risk Mgmt
Parks Reserve
All other
21,542,509
8,550,322
7,584,797
4,089,277
3,983,153
3,905,324
3,851,208
3,775,681
3,550,823
3,003,037
2,779,713
2,268,821
2,135,156
1,970,536
1,749,215
1,604,982
1,587,461
1,500,000
1,500,000
1,500,000
1,272,715
1,133,517
8,405,627
93,243,874
Safekeeping
Fraud can occur when an investment
manager can report non-existent
investments
We require independent third -party
reporting with multi -staff access
Reliable Trustworthy
Where Our Investments Are
State of Washington ocal Government Investment Pool
Date: 04.`01;2022 6:46am
Statement of Account for No: 00765
Primary Account
March 2022
Account Summary°
Beginning Balance:
Deposits:
Withdrawals:
Month End Balance:
Administrative Fee Rate:
Gross Earnings Rate:
Net Earnings Rate:
64,669,459.82
" _ 134.203.46
4 00D_000_00
62,803,663.28
0.0059 %
0.2313 %
0.2255 %
Treamn Management System
RepGAID: Lgipkatement
Page 1 of 2
Gross Earnings: 11,963.27
AdLministra tik a Fee: 29 9-81
Net Earnings: 11,664.46
Net EndLlg Balance: 62,915,327.74
AverageDailY Balance: 60,597,811.50
Where Our Investments Are
InVestmeM Position Details
CITY OF FEDERAL WAY
Single%int
P_Nons for Q31232022 as of 11:00-42 AM CDT
PH nled vn 0312312022 at 09:11 AM PDT
Account Name: INVESTMENT ACCOUNT
Account Number: 631000033
Account Deparlmenl. Money Center
embank.
013112025
U.S. T Notes
WA 1Aaa 0.00000 USD
$1,000,000.00000
3D2222253
03/09/2022
0.500%
$963.437.53
021 M025
FHLMC NON STRUCTURED
WA AA. I Aaa 0 WOW USD
$1 000,000 00000
Rign2iai6
02104/2022
1500%
$1 002,357 DO
0113112025
US T NOTE
WA 1 Aaa 0.00000 USD
$1,000,000.00000
19021510
01/12/2022
1.375%
$1,008,718.75
12113/2024
FHLB NON STRUCTURED
WA AA+ I Aaa a WOW USD
S1 000,000 00000
751513275
12107/2021
0.750%
$995,541.00
11,512024
U.S. T Notes
NIA IA.. 0.00000 USD
$1,000,000.00000
19nM54
111512021
0.75Q%
$1,001.171.89
1011512024
US T NOTE
WA I A- 0.00000 Us0
$1,000,000.00000
92219779
1IV W2021
0.625%
$1,000,000.00
0911-912024
US T NOTE
NIA I Aaa 0.00000 USD
$1.000.000.00000
552219201
1010612021
0.375%
$995.8W.44
0811512024
FHLB NON STRUCTURED
WA AA, IAaa 0.00000 USD
$7,000,000.00OOQ
51073093
10126f2021
1.50D%
$1,023,265.OQ
07YO212024
FNMA NON STRUCTURED
WA AA. IAaa 0.00000 USD
$1,000,000.00000
510NM!04
10/26/2021
1750%
$1,D29,480.OD
OWM024
UST NOTE
WA IAaa 0.00000 USD
$1,000,000.00000
751013140
11108/2021
0250%
$991,679.69
0513112024
US T NOTE
WA 1Aaa 0.00000 USD
519D2MY9
I V 1712021
2.000%
$1, 032,226.58
0413O12Q24
U.S. T Notes
WA I Aaa 0.00000 USD
$1.000.000.00000
392220608
11124/2021
2250%
$1,Q36,093.75
03106f2024
FHL13 NON STRUCTURED
NfA AA+ 1Aaa 0.00000 USD
$1,000,000.00000
751313276
12/0712021
2.375%
$1,038,546.00
02JOW024
FNMA NON STRUCTURED
WA AA+ I Aaa 0 WOW USD
$1 000.000 00000
3W22OM3
121IW1021
2500%
$1 Q37,53000
01/31/2024
U.S. T Notes
NIA IAaa 0.00000 USD
$1,000,000.00000
9222Q927
IM612021
2500%
$1,037,773.44
1212012023
FFCB NON STRUCTURED
WA AA- IA- 0.00000 USD
$1,000,000.00000
19021509
OV12r2022
0.680%
$995,970.00
%Page 1 of 2
Prin
on 03123Y2022 at
:11 AM PDT
Authorized Investments
Primary Investments:
• U.S. Treasuries
• Agencies
• State of Washington Local Government
Investment Pool (LGIP)
• Corporate Notes
(upper medium investment grade and above)
Manage Credit Risk
City of Federal Way
Diversification by Issuer- March 2022
LGIP ,
$62,815,328,
72.4%
US TREAS ,
$13,000,000,
15.0%
FHLMC,
$4,000 000,
4.5°fo
$3,000,000 ,
-- CED
FFCB,
$2 0 000,
2.39'0
FNMA,
$2 000,
CLI D
Manage Credit Risk
Section IX. Diversification by Issuer:
• US Treasuries 100%
• Washington LGIPrl00%L
• Agencies 40% per issuer
• Corporate Notes 15% / $1M per issuer
Authorized Investments
Secondary investments:
• State debt issues
• Municipal debt issues
• Commercial paper
• Bank CDs (non-negotiable)
Requ%resard
d�sc\°su aele �f
used
Reliable
Prohibited Investments
• Equities (stock market)
• Collateralized mortgage obligations
• Negotiable Certificates of Deposit
• Repurchase and Reverse Repurchase
Agreements
• Cryptocurrency
Transparency Improvements
✓ Clear and readable policy
✓ Table of Contents
✓ Glossary
✓ Citations to State RCW statutes
Quality Improvements
✓ Broker/Dealer Questionnaire (BDQ)
✓ Policy acknowledgment required
✓ Reputation of City (policy certification)
WWWql1
MOMasthingtimblic Treasurers Association
Bob, Association of Public Treasurers
of the United States and Canada
%��,'� Finance Washington
Officers
Association
Next Steps
• Staff recommends policy approval
• Submit policy for peer review /
certification
• Report monthly
• Auditors will compare activity to policy
• Budget 2023-24 revenue
a 1 IDIM - •
City of Federal Way
Finance Department
An increasingly well -managed city