CITY OF HUNTINGTON BEACHQUARTERLY TREASURER’S REPORTCITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIMQUARTER ENDED: June 30, 2023
ECONOMIC UPDATE
Federal Reserve raised rates 425 basis points in 12 months as of June 2023 Slow process of bringing inflation down to 2% target:
Core inflation beginning to come down very slowly
Tight labor market continues – June Unemployment: 3.6%
Recession still projected, but probability lowered by some
INTEREST RATES – US TREASURY YIELD CURVEJULY 1, 2022 – JUNE 30, 2023:
2-year US Treasury
4.87%
at 6/30
5-year US Treasury
4.13%
at 6/30
INVESTMENT PORTFOLIO – SUMMARY QUARTER END 06/30/23:
INVESTMENT PORTFOLIO – INVESTMENTS BY TYPEQUARTER END 06/30/23:
INVESTMENT PORTFOLIO – SELECTED ACTIVITY QUARTER END 06/30/23:
MATURITIES: $43MM
Liquidity funds moved from LAIF to CAMP
$5MM Commercial Paper matured
$38MM in U.S. Agencies matured
PURCHASES: $67MM
Thirteen U.S. Agencies purchased for a total of $60.3MM Two Corporate Bonds purchased (Walmart Inc. and Unilever) for a total of $6.8MM
Current Year - Month
June 2023: $730,988
Up 117% from prior year
Current Fiscal Year-to-date
Through 06/30/23: $5,897,287
Up 68% from prior year
Effective Rate of Return
June 2023: 2.37%
Fiscal Year-to-date: 1.78%
Benchmark
June 2023: 4.28%
12-month moving average 1.5-year Treasury
INVESTMENT PORTFOLIO – EARNINGS:
SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTSQUARTER END 6/30/23:
(Requirements are at purchase)
SUMMARY:
Safety - No principal losses
Liquidity - Sufficient funds for operations
Market rate of return through budgetary/economic cycles - 2.37% June, 1.78% Fiscal Year-to-date (upward trend) Prudently managed - No compliance issues
Positive contributor to City - Earnings of $5.9 million for fiscal year 2022-23 to be utilized for operating and other expenses