Quarterly Financial Report Q1 2014 · revenues received in the first quarter of 2014, compared to $19.5 million received during the comparable time period of 2013. Revenues in all

"A colorful past, a bright future"

Quarterly Financial Report

First Quarter 2014

First Quarter 2014 Financial Report City of Vancouver 1

First Quarter 2014 Financial Report (This report contains un-audited financial information as of May 23, 2014)

Table of Contents

Section Page

I. Executive Summary 3 II. Economic Report 4 III. Financial Results 12 IV. Outstanding Debt 23 V. Investments 23 VI. Interfund Loans 25

Attachments

A Expenditure Summary by Fund 26 B Revenue Summary by Fund 28 C Outstanding Debt 31 D Investment Portfolio Tables 33

- - - - - For additional information on the City’s financial performance please contact Natasha Ramras in the City’s Financial & Management Services Department at 360-487-8484.


I. Executive Summary

The national economy has officially been out of the recession for almost five years, but improvement in economic growth and employment has been slow. However, recent indicators reflect some positive trends. Estimated annual growth in real U.S. Gross Domestic Product for the first quarter of 2014 was 2.6%, according to a preliminary estimate released by the Bureau of Economic Analysis. The national unemployment rate continued to decline in the first quarter, reaching 6.7%, significantly below the 7.8% rate experienced at the end of 2012. City of Vancouver General Fund revenues through the first quarter of 2014 totaled $26.1 million, or 20% of the forecast for the year. Tax revenues in 2014 are coming in slightly stronger than in the first quarter of 2013 largely due to stronger sales, electrical tax revenues and utility tax on city owned utilities. Tax revenues made up $20.8 million out of the General Fund revenues received in the first quarter of 2014, compared to $19.5 million received during the comparable time period of 2013. Revenues in all city funds are on track at the end of the first quarter of 2014.

Following is detailed information on the main revenue sources of the General Fund. Cumulatively, the seven major sources of revenue listed on the chart below represent more than 82% of the total forecasted revenues in the City’s General Fund.

Note: Utility tax revenue above includes the tax on Solid Waste, Charges for Services exclude the Business License revenue.

General Fund expenditures in the first quarter of 2014 totaled $31.6 million, or 24% of the budget for the year. The General Fund operating cash balance was $32.4 million at the first quarter of 2014.


II. Economic Report The world economy continued to improve. The annual rate of growth of Gross Domestic Product in the first quarter of 2014 is estimated to be 2.6%, according to a preliminary estimate released by the Bureau of Economic Analysis. For all of 2012, Real GDP increased by 2.2%.1 Most economic indicators are showing signs of improvement: the unemployment rate continues to decline, the housing sector is showing a consistent level of activity and higher prices than in the prior four years, and consumer confidence continues to improve. The following is specific information related to some of the major national economic indicators. The national seasonally adjusted unemployment rate has been coming down over the last three months reaching 6.7% in March of 2014, virtually unchanged since the 2013 year end reading. The numbers of marginally attached and discouraged workers are slowly decreasing as well. The marginally attached workers are not considered unemployed because they did not actively look for work in the four weeks preceding the employment survey.

The March press release from the Federal Open Market Committee confirmed that “. . . growth in economic activity slowed during the winter months, in part reflecting adverse weather conditions. Labor market indicators were mixed but on balance showed further improvement. …The unemployment rate remains elevated…Longer-term inflation expectations have remained stable.”2

• One of the major measures of consumer confidence, the Conference Board’s compiled Index of Consumer Confidence, indicates that during the last quarter consumer confidence dipped temporarily, then climbed back up to a revised upwards level of 83.9

1 http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm, Bureau of Economic Analysis 2 FOMC Press Release, March 19, 2014 http://www.federalreserve.gov/newsevents/press/monetary/20140319a.htm


http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

in March of 2014, compared to a reading of 77.5 at the end of December 2013, to the highest readings during the recovery. The largest increases are attributed to the perceived improvements in the expectations of the future economic conditions and expectations for future employment. The Index is based on consumer perceptions of current business and employment conditions, as well as consumer expectations for the following six months. The level of consumer confidence is associated with consumer anticipation of the future developments in the economy and is utilized as an indicator of the likely general direction of consumer spending in the coming months.

The US Conference Board tracks economic indicators in ten different areas to assess the health of the economy and to evaluate the direction of economic development in the nearest future. The cumulative product of the ten indicators is called the US Leading Economic Index (LEI). The US LEI has been on an increasing trend since early 2009. According to Ken Goldstein, Economist at The Conference Board, “the March increase in the Leading Economic Index suggests accelerated growth for the remainder of the spring and summer. The economy is rebounding from widespread inclement weather and the strengthening in the labor market is beginning to have a positive impact on growth. Overall, this is an optimistic report, but the focus will continue to be on whether improvements in the labor market can be sustained, fueling stronger economic performance over the next few months.”3

3 The Conference Board US Business Cycle Indicators, US Leading Economic Indicators for the U.S. Increases, April 21, 2014, http://www.conference-board.org/pdf_free/press/PressPDF_ 5161_1398068405.pdf


State and Local Economy • The Washington Economic and Revenue Forecast Council’s February 2014 Economic and

Revenue forecast released on February 19, 2014 states that the Washington economy continues to expand at a slow pace. “While the economy continues to recover, we are still seeing below-average growth in personal income and revenue”.4 The outlook for improvement remains positive. State revenue projections have been revised upwards to account for new revenue from marijuana production and sales.

• At the national level, housing starts in the first quarter of 2014 were on an upwards trend for

the quarter, but not in line with the surge experienced in November and December of 2013. On a year-over-year basis, housing starts in March of 2014 came in 5.9% lower than those in March 2013. 5 Housing starts measure construction of residential units per month. The graph below shows national data.

4. State of Washington, Office of Financial Management, press release, Feb. 19, 2014. 5 http://www.nasdaq.com/markets/us-economic-calendar.aspx


Data provided by the Community & Economic Development Department, City of Vancouver.

• The City of Vancouver experienced an unprecedented slowdown in the number and

valuation of residential permits from late 2008 through 2011. The number of residential permits is the local data equivalent for housing starts. In 2012 and 2013, the City saw a welcome change in this trend – a significant increase in the number of residential units permitted and their respective valuation. The number and the valuation of the residential permits so far permitted in 2014 has fallen off significantly compared to the prior two years.


• Similarly to the national trends, the City has been seeing an increase in the number of

multi-family units permitted within the city limits. The number of new multi-family units permitted in 2013 was 657, roughly double that of 2011 and 2012. So far in 2014 a total of 243 units were permitted, on track with the 2013 activity.

• There has been a significant decline in commercial permitting activity in years 2009-2010, reflecting the downturn in the economy. The trend somewhat changed in 2011, when several large commercial projects were permitted, several of those in the Port of Vancouver. There were 23 commercial projects permitted during 2013, valued at $105.5 million, compared to 34 commercial permits issued in 2012, valued at $72.3 million. So far in 2014 a total of 9 projects were permitted, valued at $15.3 million.

Data provided by the Community and Economic Development Department, City of Vancouver.

• The national inflation rate as measured by the U.S. Consumer Price Index for All Urban

Consumers (CPI-U) on a year over year basis came in at 1.5% in March, as reported by the U.S. Department of Labor. Inflation has been fluctuating between 1.5% and 2% annual estimated rates over the last 18 months. The graph below shows annualized inflation rate changes.


• The local Portland-Vancouver metro inflation rate is published twice a year by the Bureau of Labor Statistics. The metro inflation rate (CPI-U) for the 12 month period ending in December 2013 was 2.8%, compared to 2.1% in 2012.6 The increase came largely from higher prices for shelter and food. The increases were partially offset by declining gasoline prices.

Data prepared by Bureau of Labor Statistics

6 http://www.bls.gov/ro9/cpiport.htm


• According to the Bureau of Labor Statistics, the county and the city estimated unemployment rate at the end of December 2013 were at 7.4 percent, more than a whole percentage point higher than the Portland Metro estimated unemployment rate. In the last several months, the estimate was revised upwards by more than a percent in the following month, after the numbers were finalized. The local unemployment rate has been on a declining trend since the early 2010.

Data provided by the Bureau of Labor Statistics

• Home sales are cyclical. Typically, they increase in the second and third quarters of the

year. Home prices continue to stabilize nationally and locally, according to the S&P’s Case-Shiller Home price Index. During the last twelve months, the prices have been consistently higher than those in the prior year by approximately 12%, indicating that locally the market has been on an upward swing. Housing prices for the Portland metro area are estimated to have increased by 11.7% on a year-over-year basis as of March 2014.


Data source: S&P, www2.standardandpoors.com

• Housing prices in Vancouver have been on an increase since December of 2011. The median sale price in Vancouver is estimated at $226,100, representing almost a 20% increase in value over the last 12 months as of March of 2014. The graph below represents home sales and changes in the median home price over time. Housing prices locally indicate a potential price bubble not consistent with historical price change trends.

Source of Data: Zillow

III. Financial Results


General Fund REVENUES

General Fund revenues through March of 2014 totaled $26.1 million, $1.1 million above the comparable collections from 2013. Following is detailed information on the main revenue sources of the General Fund. Cumulatively, the seven chief sources of revenue listed on the chart below represent more than 82% of the total forecasted revenues in the City’s General Fund.

Note: Utility tax revenue above includes the tax on Solid Waste, Charges for Services exclude the Business License revenue.

Property Tax

• Property tax revenues are typically received during the second and fourth quarters of the

year. The amount of revenue is based on the assessed valuation and is estimated using the County Assessor’s data. Deviations from estimates in this revenue source are mostly related to the amount of new construction and delinquency rates.

• By Council action, there was a 1% property tax levy increase for 2014 taxes. The total City

of Vancouver levy rate in 2014 is $3.0221 per $1,000 of assessed value. • The City experienced a 20% combined reduction in assessed valuation between 2009

and 2011, following by an additional 3.5% reduction in 2012 for 2013 taxes. The reduction in assessed valuation resulted in an increase of the city’s property tax levy rate, but did not have any impact on the revenues. The City’s assessed valuation for 2014 has increased by 8.3%, allowing the City to avoid reaching the maximum statutory capacity and prevent revenue loss in property tax revenues in the near future.


• A total of $3.1 million was collected during the first quarter of 2014 in property taxes, comparable to the collections during the first quarters of 2012 and 2013. Overall, there will likely be approximately $1.13 million more collected in property tax than was anticipated for the year.

Note: The dollar amounts have not been adjusted for inflation.

Sales Tax

• The sales tax rate of 8.4% in the incorporated area is distributed as follows: 6.5% to the State, 0.5% for the City’s “basic” sales tax, 0.3% for the City’s “optional” sales tax, 0.2% for the City restricted to funding Public Safety, the County’s additional optional 0.1% for Law and Justice, 0.1% for addressing the region’s methamphetamine drug addiction and related crime, and 0.7% for C-TRAN.

• A total of $7.5 million in sales tax revenue was received in the first quarter of 2014, or 2%

above the forecast for the quarter. In 2013, the City’s collections finally caught up with those in the pre-recession time, year 2007, (without adjustment for inflation for the past six year period). In mid-2011, the City started receiving monthly installments of the state sales tax credit for the Local Revitalization Program, ($220,000 annually). This new sales tax revenue helps fund the bonds issued in 2011 to fund the Waterfront Access project. The new revenue is included in the Sales Tax projection for the year and in the information on revenue received below.


• Growth in taxable retail sales in past years was fueled by a robust real estate market and new construction. Construction and real estate related sectors (construction, building materials/hardware, furniture and home furnishings and appliances) had a double-digit growth in the City between 2005 and 2007. In 2012 through early 2014 the main increases in sales tax revenue are attributable to the increases in the retail sales and construction categories.

Taxes on Privately Owned Utilities • Vancouver collects a 6% utility tax on electrical, natural gas and telephone services

provided within the incorporated area by entities other than the City. The City also charges cable franchise fees.

• Utility tax on privately owned utilities generated $5.8 million through the first quarter of

2014, exceeding collections during the comparable period of time in 2013 by approximately $300 thousand.

• Natural gas tax revenues in the first quarter of 2014 totaled $0.8 million, as anticipated.

• Telephone tax revenues in the first quarter of 2014 totaled $1.3 million, slightly above the 2013 collections. Over the last three years, the City has seen a 6% reduction in revenues from this tax, a 2.2% reduction in 2013 alone.

• A total of $3.2 million was collected in electrical tax revenue in the first quarter of 2014,

slightly higher than the 2013 collections.


• The revenue from cable franchise fees received in the first quarter of 2014 totaled $0.5 million, on track with comparable collections in 2013.

Water, Sewer, Storm Water and Solid Waste Taxes

• The City Utility tax on Water, Sewer and Storm Water utilities is currently set at 20%. • Prior to 2010, the City charged a solid waste franchise fee for garbage collection services

to fund operations of the Solid Waste fund with a portion of the fees, equivalent to approximately a 12% tax rate, deposited into the General Fund for general use. In 2010, the franchise fee portion, (related to the general use), was converted to a utility tax of 20%.

• In the first quarter of 2014, the City received $4.4 million in utility tax on city-owned utilities,

compared with $4.2 million collected in the first quarter of 2013. The underlying water utility rates were increased by 5% in 2013 and an additional 5% in 2014. Storm water rates were increased by 5% and sewer rates increased by 2.5% in 2014.


• In 2013, residential water revenues generated 80% of the total water user revenues, while residential sewer fee revenues made up 62% of the total sewer user revenues.

Grant & Entitlement Revenues • The City did not recognize any grant revenues during the first quarter of 2014 in the

General Fund. The largest unspent grant was in Police of $1 million for replacing of the records management system. The spend-down of the grant is tied to a large system replacement project in Portland and has been delayed. The other large grant funding 10 new positions in VPD is also being spent very slowly due to difficulties in hiring into these positions.

Charges for Goods and Services In the first quarter of 2014, the City recorded approximately $1.4 million in charges for services, not taking into account internal charges for services provided by City agencies to each other. The largest program areas that generate fee revenue are the Development Review Services and Recreation programs. Land Use and Other Planning Permits

During 2008, 2009 and 2010, the City experienced a significant decrease in both the number of single family residential permits issued and in their valuation. The collections in 2011 were 10% greater than those in 2010. In 2012, permit collections remained at the level of the 2011. Collections in 2013 came in a $475 thousand, almost 10% lower than the 2012 collections. So far, in the first quarter of 2014 planning permits are coming at the level of 2012, totaling $185 thousand for the quarter.


Recreation Program Fees A total of $1 million in recreation fees was collected in the first quarter of 2014,

approximately $50 thousand less than the amount collected in 2013. In 2012, reductions on the expenditures side were implemented to balance them to the lower recreation program revenues. It appears that the activity in 2014 remains at the reduced levels experienced over the last three years.

EXPENDITURES

• General Fund expenditures in the first quarter of 2014 were $31.6 million, or 24% of the budget, compared to $31.2 million spent in the first quarter of 2013.

• Expenses vs. budget by category within the General Fund are shown in the chart below.

• Salaries and benefits expenditures totaled $11 million in the first quarter, slightly higher than those in the first quarter of 2013.

• General Fund expenditures in the supplies and services category in the first quarter were at $2.3 million, approximately $0.2 million lower than those during the first quarter of 2013.

• The intergovernmental category of expenditures includes payments by the City to other jurisdictions based on inter-local agreements in place and internal transfers supporting other funds, including the debt fund and the fire and street funds. Expenditures in the Intergovernmental category reached $16.6 million, consistent with historical pattern of expenditures in this category.


Cash Balance

• The General Fund operating cash balance was $32.4 million at the end of the first quarter 2014. This is $4.4 million higher than the cash balance at the end of March 2013. The balance includes set asides for the carry-forward appropriation items.

• The General Fund emergency reserve was $10.5 million at the end of March 2014, compared to $10.1 million in March 2013. Council updated the financial policy related to the emergency reserve balance in 2012. In previous years, the balance was based on 7% of the prior year’s General Fund revenues. The new policy requires the emergency reserve balance to equal 7% of actual external revenues in the preceding fiscal year for the General, Street, and Fire Funds. These funds are intended to be used only for extraordinary events, such as natural disasters.

Fund Balance • The cash balance represents a snapshot on a particular date, while the fund balance

factors in revenues that are anticipated to be received by the end of the year and expenditures that are anticipated to happen through the end of the year.

• The total fund balance in the General Fund at the end of 2013 was $58.5 million. A portion of the fund balance estimated at $0.2 million represents the long term notes receivable and capital assets held for resale. The remaining balance is composed of the Restricted, Committed Assigned and Unassigned balances. The Restricted balance of $0.5 million represents the grant revenue received in advance of expenditures and the liabilities resulting from accepting the COPS grant in police. The Committed balance represents reserves in accordance with the City Financial Policies: the City Emergency reserve of $10.1 million, Revenue Stabilization reserve of $3.2 million, reserve restricted for capital purposes of $0.9 million and the working capital of $26.9 million. The working capital is required to ensure sufficient cash flow in the fund. The balance pays for the ongoing operations of the General Fund when the incoming seasonal revenues are not sufficient to cover the expenses and eliminate the need for short-term borrowing. The Assigned reserve of $3.9 million represents funding of 50% of accrued compensated absences. The remaining portion of the balance of $12.8 million was unassigned at the end of 2013.

Street Fund • Expenditures in the Street Fund by the end of the first quarter of 2014 were at $2.1 million, or

12% of the budget, comparable to the expenditures in 2013. • The first quarter of 2014 revenues, excluding a budgeted general fund transfer, totaled $1.3

million, compared to $1.2 million collected in the first quarter of 2013. This fund’s largest sources of revenue are state shared revenues from the motor vehicle fuel tax (MVFT), real estate excise tax (REET), and a transfer from the General Fund. General Fund transferred $2.6 million dollars to support operations of the fund in the first quarter.


• Motor Vehicle Fuel Tax (MVFT) revenues were $0.8 million at the end of the first quarter, comparable to the 2013 collections. This revenue source is a set tax per gallon that does not depend on the price of gasoline. The significant increase in gasoline prices nation-wide that were experienced over the past two years resulted in declining gasoline consumption in the state. The decline in consumption has been negatively impacting tax revenue collections state-wide and decreased the proportionate share of the tax received by the City.

Real Estate Excise Tax (REET)

• Real Estate Excise Tax (REET) of one-quarter of one percent of the selling price is imposed on each sale of real property in the corporate limits of the City. The tax is deposited into the Street Fund and is restricted to fund preservation of the City’s street system. The City also collects REET for Parks and Transportation capital.

• REET revenue was growing rapidly in years 2004-2006 fueled by the favorable real estate

market and increasing home prices. REET revenues declined significantly since the housing bubble in 2005 and 2006. The 2011 and 2012, collections showed some improvement over the low in 2010. The 2013 collections indicated an upward trend. The real estate market is showing signs of improvement. So far, REET collections during the first quarter of 2014 indicate that the improving trend continues.

• REET revenue received in the first quarter totaled $0.4 million, approximately $100 thousand

higher than the comparable 2013 collections. The graph below demonstrates fluctuations in REET collections over the past eleven years.


Consolidated Fire Fund

• The City has an Operating Fire Fund and the Capital Fire Fund, largely funding vehicle replacements and set up. The Operating Fire Fund is fully supporting the Capital Fire Fund. Financial information in Attachment A and B contains the combined financials of the operating and capital funds, including the interfund transfer. The graph below represents the operating funds’ financial information.

• Operating Fire Fund revenues (exclusive of General Fund support, the Fire District 5 transfer and the transfer between Fire Operating and Capital) through the end of the first quarter of 2014 were $0.2 mil, mostly representing permit fees and grant revenue. Total Fire Operating Fund revenue, including the General Fund transfer, totaled $11.1 million.

• Total operating Fire Operating expenditures in the first quarter were $7.6 million, including the transfer from Fire Operating to Fire Equipment Fund.


Building Inspection Fund

• Building inspection fee revenues received in the first quarter totaled $0.7 million, approximately half of the amount collected during the comparable period of 2013.

• Building Fund expenditures were at $1 million in the first quarter, consistent with budget

for the year.

• The fund balance in the Building fund anticipates funding 18 months of permitting activity after the revenue is collected. A portion of the fund balance in the Building Fund is being utilized to fund a replacement of the Tidemark permitting system with a new Hansen system.

Parking Fund

• Fee and fine revenues in the first quarter of 2014 were $0.5 million, comparable to the 2013 collections.

• The General Fund support of the Parking fund remains at the $1.25 million level in 2014. Over time, the fund is anticipated to become self-supporting.

• Operating expenses in the first quarter totaled $0.6 million, approximately $200 thousand

greater than those in the first quarter of 2013.

Utility Operations


Operating transfers between the Water, Sewer and Storm Water funds are included in the accompanying report, Attachment A, per budget requirements. These transfers are generally eliminated when financial statements are prepared. Financial statements for utility funds are prepared on a quarterly basis. Please call (360) 487-8444 to receive a copy of the detailed financial statements for the utility funds. Water

• Water sales revenues were $5.5 million through the first quarter of 2014, or 7% above the first quarter of 2013 collections. There was a 5% increase in rates effective in 2014. Private contributions totaled $50 thousand, in line with prior year collections during the comparable time period.

• Expenditures in the Water fund in the first quarter of 2014 totaled $7 million,

approximately $600 thousand greater than those during the first quarter of 2013. Sewer

• Sewer charge revenues in the Sewer Fund came in at $9.2 million in the first quarter of 2014, approximately $500 thousand, or 5% above the 2013 first quarter revenues. Sewer rates were increased by 9% in 2011, 6.5% in 2012, an additional 2.5% in 2013 and 2014.

• There has been a significant drop in the amount of private development contributions

received resulting from the sluggish development activity in the City in the last several years. The 2013 contributions came in at $800 thousand, compared to $500 thousand in 2012. Sewer fund borrowed $5.3 million from Water fund to support its operations in 2009, $3.2 million in 2010, and $2 million in 2011 to address the insufficient level of revenues compared to the fund’s expenditures. In 2013, the fund borrowed $2.5 million from the Water Operating fund and is scheduled to borrow $1.2 million in 2014.

• Sewer expenditures through the first quarter of 2014 totaled $9.3 million, almost $1 million

below those in 2013. Storm Water

• A total of $2.6 million in storm water fee revenue was received through the first quarter of 2014, approximately $150 thousand higher than in 2013. The Storm Water rates were increased by 5% in 2013 and 2014. Overall, the expenditures in the Storm Water fund through the first quarter were $2.2 million, or 19% of the budget for the year.


IV. Outstanding Debt

• At the end of the first quarter of 2014, the City had about $105.8 million of general obligation (G.O.) debt outstanding and approximately $50 million of revenue bond debt outstanding. General obligation debt is backed by the full faith and credit of the City and by general taxes. Revenue bond debt is supported by a pledge of specific revenues. All of the City’s revenue bond debt is supported by the City’s water and sewer utilities. The weighted average interest rate for the City’s general obligation debt is 3.89% while the average interest rate for the City’s revenue bond debt is 3.94%.

A complete list of the City’s outstanding debt is included in Attachment C.

V. Investments

Market Conditions • Information received since the Federal Open Market Committee met in March indicates that

growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions. Labor market indicators were mixed but on balance showed further improvement. The unemployment rate, however, remains elevated. Household spending appears to be rising more quickly. Business fixed investment edged down, while the recovery in the housing sector remained slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.

• To support continued progress toward maximum employment and price stability, the Committee reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

• The overall yield curve decreased during the first quarter of 2014. The yield on the three-

month Treasury has decreased ending at 0.03% at the end of the First quarter. The six-month Treasury yield has decreased to 0.05%. The yield on the two-year Treasury has increased to 0.42%. The thirty-year Treasury yield decreased, ending the first quarter at 3.55% from 3.96%. Market risk of the City’s portfolio is low. Investment purchase maturities have been kept at two years and are due to the Federal Reserve’s statement of continued low overnight rates into late-2015 early 2016. The investment maturities are expected to meet the cash flow needs of the city and it is unlikely that an investment would have to be liquidated before maturity to meet the city cash needs.


• The City complies with State statutory guidelines and the City’s investment policies that limit the types of securities purchased. These consist of U.S. Treasury securities, federally-backed agency securities, and other relatively risk-free investments. The City does not leverage its portfolio nor does it invest in derivatives.

Investment Performance The average amount invested during the first quarter of 2014 was $252 million compared to $250 million on December 31, 2013. The portfolio had an average yield of 0.38% year to date, which is 0.01% less than the projected yield of .39% for 2014. The projected yield is based upon the blended yield between existing rates and expected market rates when new investments are purchased during the year. The year-to-date yield is 23 bps higher than the State Investment Pool, which had an average yield of 0.114%. The State Pool has a weighted average maturity of 53 days. The City’s investment portfolio weighted average maturity is approximately 10 months. Longer-term portfolio yields will outperform shorter-term portfolio yields in a falling interest rate environment. Interest revenue distributed through the first quarter of 2014 to all funds is approximately $237,931 compared to $228,330 during the same period of 2013. The City’s investment portfolio profile is detailed in Attachment D.


VI. Interfund Loans In 2003, Council passed an ordinance giving the City Treasurer the authority to make interfund loans to meet the short term liquidity and cash flow needs of the City’s various funds. The ordinance requires the City Treasurer to provide a quarterly report to City Council showing the amount of all interfund loans outstanding and the repayment plan for those loans. The table below provides this information. One fund required interfund loans through March 2014. City of Vancouver Outstanding Interfund LoansThrough First Quarter 2014

Balance InterestOutstanding Interest Expense

Fund Description 03/31/14 Lending Fund Rate Paid in 2014 Repayment Plan

330 Transportation Capital -$ 001 0.35% 508.98$

Loan due to timing between when deposits received vs.

expenditures paid

330 Transportation Capital 325,626$ 001 0.35% -$ Loan for LID - until bonds are

issued

Total Outstanding Interfund Loan Balance 325,626$


2012 2013 2014 Mar-14Actuals Actuals Budget Actuals

GENERAL FUNDCity Council 409,233 432,073 526,872 98,012 19%City Manager's Office 2,449,760 2,374,176 2,970,011 594,157 20%Legal Services 3,323,409 3,495,360 3,409,809 889,922 26%Community Economic Development 4,654,404 4,427,824 5,080,831 977,528 19%Parks Administration 1,142,838 1,166,420 1,003,636 196,740 20%Parks, Trails, & Natural Resources 924,671 1,272,931 856,965 98,830 12%Recreation Services 5,457,937 5,544,458 5,609,386 1,302,368 23%Police 31,215,355 33,717,499 33,265,332 8,451,621 25%Transportation 691,640 647,732 743,868 146,184 20%Grounds Maintenance 2,801,905 2,887,179 2,980,660 587,415 20%Facilities Maintenance 3,247,010 3,121,541 3,220,255 600,073 19%Financial and Mgmt Services 3,949,047 3,663,304 4,301,839 878,537 20%General Services 306,371 300,284 513,507 98,806 19%Information Technology 2,696,927 2,507,612 3,699,578 643,035 17%COBRA 127,382 - - - 0'%Human Resources 1,225,425 1,288,501 1,544,216 300,447 19%

Subtotal Non-Gen. Governmental 64,623,312 66,846,893 69,726,765 15,863,676 23%

General GovernmentalChild Justice Center Support 345,284 304,632 329,850 83,466 25%City Cable Programming 340,549 441,567 460,596 115,149 25%Fire District #6 16,392 15,235 16,000 - 0%Emergency Mgmt (CRESA) 138,525 139,646 142,329 70,379 49%Air Pollution Control Authority 54,115 53,109 56,166 53,356 95%Humane Society 212,236 232,423 335,769 13,420 4%Animal Control 199,403 198,806 433,625 56,248 13%Alcoholism Support 40,513 33,959 46,697 - 0%Regional Transp Council 21,300 21,300 21,300 - 0%Election Support 283,313 340,053 350,000 - 0%Celebrate Freedom 110,000 - 110,000 - AWC, Chamber of Commerce Members - 81,336 84,562 71,627 85%Opportunity Reserve 138,970 115,634 182,900 12,049 7%Miscellaneous 244,027 429,902 5,722,398 70,968 1%Public Defender 643,050 670,126 816,841 227,603 28%County Jail Costs 3,485,238 3,967,375 4,669,751 - 0%County Corrections Costs 1,123,636 1,072,182 1,972,374 129,655 7%County District Court Costs 1,018,965 1,015,460 1,652,305 14,899 1%General Obligation Debt Payment 7,271,967 7,001,668 7,610,881 - 0%General Govt Support 35,359,614 44,797,908 38,830,660 14,791,821 38%

Subtotal General Govermental 51,047,097 60,932,321 63,845,004 15,710,641 25%

Total General Fund 115,670,409 127,779,214 133,571,769 31,574,317 24% SPECIAL REVENUE FUNDSStreet 16,187,971 14,537,885 17,200,420 2,064,553 12%Fire Operating Fund 31,721,473 32,603,178 32,678,481 7,583,190 23%Fire Capital Fund 386,102 2,293,960 2,586,212 149,195 6%Drug Enforcement and Investigative Fund 125,130 89,407 227,010 23,838 11%Community Development Block Grant 2,637,342 2,479,292 3,085,965 428,241 14%Tourism 1,143,903 786,937 1,242,852 166,434 13%Criminal Justice/LLEBG 106,515 126,939 79,107 - 0%Real Estate Excise Tax - I 1,473,784 1,977,908 2,015,581 297 0%Transportation Special Revenue 2,195,157 2,050,590 2,275,838 25,068 1%Parks & Recreation Special Revenue 51,523 53,291 17,773 713 4%Parks Construction - Residual REET 165,307 28,613 35,260 - 0%Downtown Initiatives 93,507 87,480 98,006 29,668 30%VNHR Properties 223,647 206,367 242,037 11,489 5%Senior Messenger 263,217 261,649 307,779 65,876 21%TIF Funds 1,532,710 1,748,600 5,181,922 14,045 0%

Actuals as % of Budget


2012 2013 2014 Mar-14Actuals Actuals Budget Actuals

Actuals as % of Budget

PIF Funds 553,803 12,139,486 349,255 34,347 10%Miscellaneous Special Revenue Funds - - - -

DEBT SERVICE FUNDSG O Debt Service Fund 30,629,622 11,840,874 11,982,541 6,128 0%L I D Debt Fund 3,832 3,630 74,428 - 0%

CAPITAL FUNDS

2011 Bond Capital Fund - Waterfront 1,604,636 4,309,388 905,980 113,813 13%Transportation Capital Fund 16,259,786 18,304,852 23,171,215 948,542 4%Capital Improvement Fund 622,977 566,207 503,868 111,138 22%VNHR Property Capital 1,144,807 665 848,399 - n/aParks Construction Fund (Capital Projects 1,230,250 1,762,587 848,559 6,143 1%REET - Urban 2nd Qtr 108,408 2,072,516 - - 0%REET II - County 375,873 312,482 - 9 0%City Tree Reserve Fund - 11,687 17,500 38 0%Drainage Construction Fund 416,574 148,295 1,535,327 100,194 7%Systems Development Reserves - 4,000,000 1,100,000 - 0%Water Construction Fund 373,872 1,197,352 17,414,440 902,657 5%Utility Customer Assistance 18,963 23,094 100,000 3,574 4%Water Revenue Bond Debt Service Fund 174,693 122,692 643,682 - 0%Sewer Revenue Bond Debt Service Fund 3,112,230 2,645,841 10,782,158 - 0%Sewer System Development 600,000 3,499,999 1,200,000 - 0%Sewer Construction Fund 327,566 817,386 1,737,083 13,322 1%

ENTERPRISE FUNDSStorm Water 10,536,065 10,785,886 11,589,146 2,248,920 19%Water 28,999,312 32,864,073 29,956,337 6,995,245 23%Sewer 45,317,208 39,636,118 39,715,781 12,550,686 32%Building Inspection 3,641,963 3,691,786 4,222,958 1,009,717 24%Solid Waste 2,113,704 2,351,891 2,891,514 283,103 10%Parking 3,376,455 2,041,131 2,930,963 617,269 21%Tennis Center 1,124,301 1,014,048 1,051,300 273,373 26%Airpark 696,974 380,056 790,610 130,713 17%

INTERNAL SERVICE FUNDSFire Shop Fund 628,964 - - - 0%Equipment Services Operations Fund 4,484,899 4,977,631 5,616,323 1,158,306 21%Equipment ER&R Capital 2,078,743 123,413 4,074,674 647,984 16%Technology ER&R 2,408,941 2,515,228 2,859,553 950,122 33%Self Insurance 2,536,682 5,659,313 4,582,353 991,452 22%Self Insurance Benefits 13,831,568 14,218,373 15,060,474 3,651,678 24%Print Shop & Mail Services 191,398 171,814 255,860 39,680 16%

AGENCY FUNDSSWAT Team 179,241 167,072 191,376 20,410 11%Police Pension 828,249 787,310 1,516,620 286,575 19%Fire Pension 1,747,250 1,554,499 2,710,930 369,544 14%Cable TV 914,206 822,815 1,064,136 255,035 24%

Notes1. This report contains the unaudited results through the end of 1Q of 2014

3. Operating transfers between funds are included within this report.4. Capital project and Water/Sewer Debt Funds are excluded; Proprietary funds only include operating revenues.5. The Water, Sewer and Storm Water funds are adopted as one legal fund but are shown separately for informational purp

2. This report was prepared using the methodology prescribed under the basis of budgeting, depreciation, appreciation costs have been excluded


2012 2013 2014 Mar 14 1Q%Actual Actuals Forecast Actual as % of Budget

GENERAL FUNDTax Revenue

Property Tax 40,947,711 41,935,772 41,656,790 3,131,516 8%Sales Tax 26,165,994 27,577,775 27,254,700 7,476,443 27%Electrical Tax 7,875,459 7,828,191 7,510,832 3,204,072 43%Natural Gas 2,357,432 2,685,425 2,847,390 809,670 28%Telephone 5,269,838 4,910,455 5,028,389 1,308,950 26%Cable Franchise Fee 1,797,577 1,843,998 1,669,464 472,083 28%Water/Sewer/Storm Water 13,920,197 14,546,537 14,999,102 3,435,910 23%Solid Waste Utility Tax 3,633,251 3,716,225 3,823,856 925,194 24%Gambling and Leasehold Taxes 627,300 693,743 606,970 43,502 7%

Subtotal Tax Revenue 102,594,758 105,738,120 105,397,493 20,807,340 20%Business Licenses 871,782 878,768 965,105 239,740 25%Grants & Entitlements 1,844,092 1,465,180 2,730,532 (19,400) -1%State Shared Revenues 3,176,881 2,699,810 2,351,855 476,444 20%Parks Contract with Clark County 802,180 784,363 - 3,869 Charges for Services

Planning Permits 525,024 475,014 564,212 185,205 33%Recreation Program Fees 4,336,076 4,312,844 4,015,129 962,865 24%Interfund Service Charges 8,148,736 8,629,417 7,666,202 1,900,526 25%Other Charges & Services 701,605 810,336 784,044 249,127 32%

Subtotal Charges for Services 13,711,441 14,227,611 13,029,587 3,297,724 25%District Court 1,721,965 1,504,835 1,574,253 529,280 34%Miscellaneous 3,590,379 3,970,471 3,420,017 795,812 23%Operating Transfers 324,834 189,053 458,785 - 0%

Total General Fund 128,638,312 131,458,211 129,927,627 26,130,810 20%

SPECIAL REVENUE FUNDSStreet Fund

Real Estate Excise Tax 1,315,273 2,280,644 1,380,881 415,600 30%Motor Vehicle Fuel Tax 3,316,804 3,380,195 3,456,227 813,855 24%Permits 266,583 270,763 1,103,826 15,209 1%Miscellaneous 265,747 329,441 20,000 44,125 221%Operating Transfers 9,847,687 9,914,887 9,845,454 2,461,364 25%

Total Street Fund 15,012,094 16,175,930 15,806,388 3,750,153 24%Consolidated Fire Fund - - -

Service Charges-Fire Dist. #5 7,977,703 7,585,090 9,483,123 - 0%Grant Revenue 1,399,807 2,027,971 22,598 11,865 53%Permit/Other Fees 723,150 720,454 373,000 147,863 40%Miscellaneous 136,802 203,973 235,110 36,531 16%Operating Transfers 21,098,865 22,564,835 22,272,058 11,136,029 50%Fire Equipment Fund revenue 2,493,544 3,152,750 2,198,916 389,769 18%

Total Consolidated Fire Fund 33,829,871 36,255,072 34,584,805 11,722,057 34%Other Special Revenue Funds

Drug Enforcement 249,414 278,735 206,000 76,256 37%Community Development Block Grant 2,801,146 2,498,269 3,255,904 171,882 5%Tourism 1,360,069 1,544,804 1,260,000 312,066 25%Criminal Justice/LLEBG 207,693 217,351 212,378 56,581 27%Transportation Special Revenue 2,344,410 2,283,433 2,212,000 724,630 33%Real Estate Excise Tax - I 1,296,279 2,144,827 1,498,881 391,749 26%Parks & Recreation Special Revenue Fun 47,464 51,568 15,000 374 2%Parks Construction - Residual REET 849 366 1,000 90 9%Downtown Initiatives 156,473 161,152 140,000 40,538 29%VNHR Properties 304,809 257,674 265,000 47,124 18%



Senior Messenger 307,428 283,200 250,000 54,343 22%TIF Funds 437,063 556,465 324,500 86,976 27%PIF Funds 1,860,413 2,689,189 479,000 419,041 87%Miscellaneous Special Revenue Funds 321,569 294,942 264,600 55,583 21%

DEBT SERVICE FUNDSG O Debt Service Fund 30,630,580 11,839,915 11,982,541 6,128 0%L I D Fund 4,020 3,595 117,900 44 0%

CAPITAL FUNDS

2009 Bond Capital Fund - Transportation 30,329 4,433 - - Closed2011 Bond Capital Fund - Waterfront 46,431 27,502 20,000 4,200 21%Transportation Capital Fund 15,866,996 17,162,916 24,524,841 702,062 3%Capital Improvement Fund 659,045 562,969 562,831 3,239,983 576%VNHR Property Capital 264,566 582 783,065 259 0%Parks Construction Fund (Capital Projects 1,346,142 1,697,148 848,558 36,236 4%REET - Urban 2nd Qtr 113,779 521,149 - 1,328 0%REET II - County 372,180 300,754 - 7 0%City Tree Reserve Fund 13,730 136,591 - 30,286 0%Drainage Construction Fund 1,629,638 524,811 1,332,341 175 0%Water/Sewer Capital Reserves 14,037 11,008 10,000 2,656 27%Systems Development Reserves 1,382,491 2,598,786 1,056,000 648,870 61%Water Construction Fund 398,272 7,803,311 1,220,000 30,277 2%SCIP Fund 620,546 760,568 585,000 196,300 34%Utility Customer Assistance 12,538 12,398 6,000 2,185 36%Water Revenue Bond Debt Service Fund 1,196,119 1,199,541 645,682 303,430 47%Sewer Revenue Bond Debt Service Fund 12,812,378 12,376,382 10,802,158 4,885,083 45%Debt Service Reserves 8,111 6,366 6,000 1,627 27%Sewer Utility Fund 37,359,919 40,584,054 39,836,487 9,292,725 23%Sewer System Development 1,508,066 3,122,766 1,200,000 789,584 66%Sewer Construction Fund 411,904 2,044,727 1,250,000 479 0%

ENTERPRISE FUNDSStorm Water

Storm Drainage Fees 10,129,259 10,962,432 11,337,069 2,606,911 23%Private Capital Contributions 433,989 140,652 - - 0%Miscellaneous 290,259 173,692 17,000 47,304 278%

Total Drainage Fund 10,853,507 11,276,776 11,354,069 2,654,215 23%Water

Water SalesResidential 18,927,991 19,945,387 21,132,149 4,572,184 22%Commercial 4,210,064 4,374,554 3,831,620 787,739 21%Governmental 721,915 751,214 755,188 126,842 17%

Subtotal Water Sales 23,859,970 25,071,155 25,718,957 5,486,765 21%Private Capital Contributions 1,317,048 2,657,366 575,000 49,320 9%Interfund Transfers 3,284,767 2,429,427 2,327,552 - 0%Indirect Cost Plan Revenue 1,369,750 1,393,195 1,216,611 290,320 24%Miscellaneous 1,889,387 2,072,530 1,418,000 468,508 33%

Total Water Fund 31,720,921 33,623,672 31,256,120 6,294,912 20%Sewer

Sewer ChargeResidential 23,891,064 24,621,539 24,006,578 6,286,588 26%Commercial, Industrial 10,927,583 11,220,783 11,285,639 2,625,577 23%Governmental 1,215,097 1,147,940 1,298,420 293,009 23%First Quarter 2014 Financial Report City of Vancouver 29


Subtotal Sewer Charges 36,033,744 36,990,262 36,590,637 9,205,175 25%Private Capital Contributions 485,826 779,319 50,000 29,120 58%Interfund Transfers 600,599 2,499,980 1,200,000 - 0%Miscellaneous 239,751 314,492 1,995,850 58,431 3%

Total Sewer Fund 37,359,919 40,584,054 39,836,487 9,292,725 23%Building Inspection

Permits 3,211,210 3,604,784 2,264,000 697,428 31%Miscellaneous 218,658 147,232 30,000 37,062 124%Interfund Services 627,768 982,127 647,824 161,956 25%

Total Building Fund 4,057,636 4,734,143 2,941,824 896,446 30%Solid Waste

Solid Waste Utility Tax 1,758,924 1,662,040 1,500,000 355,384 24%Service Charges-Recycling 1,080,465 869,570 1,170,000 36,329 3%Miscellaneous 31,927 106,429 20,000 16,646 83%

Total Solid Waste Fund 2,871,315 2,638,039 2,690,000 408,359 15%Parking

Parking Fines 591,512 497,029 563,750 128,090 23%Parking Meters & Lots 1,511,023 1,472,596 1,138,775 330,465 29%Miscellaneous (13,508) 31,115 66,375 2,899 4%Operating Transfers 1,245,540 2,137,505 1,245,540 - 0%

Total Parking Fund 3,334,567 4,138,245 3,014,440 461,455 15%Tennis Center

Membership Fees 938,694 863,081 883,200 247,494 28%Instruction Fees 2,791 2,364 2,614 618 24%Miscellaneous 13,643 16,733 - 2,528 Operating Transfers 124,909 112,441 81,849 28,716 35%

Total Tennis Center Fund 1,080,037 994,619 967,663 279,356 29%Other Enterprise Funds

Fire Emergency Equipment Services 736 - - - Pearson Airfield 706,665 709,221 730,473 172,486 24%Utility Customer Assistance 12,538 12,398 6,000 2,185 36%

INTERNAL SERVICE FUNDSEquipment Services Operations Fund 4,620,646 4,521,720 4,541,868 1,036,546 23%Equipment ER&R Capital 3,215,778 2,706,064 2,679,021 645,673 24%Technology ER&R 2,236,197 2,651,583 2,900,026 664,985 23%Self Insurance 4,509,237 4,332,913 4,026,346 1,004,445 25%Self Insurance Benefits 13,358,023 15,018,795 16,341,386 3,467,442 21%Printshop & Mail Services 243,838 223,538 275,460 42,932 16%

AGENCY FUNDSSWAT Team 142,739 181,037 170,425 58,312 34%Police Pension 1,082,474 1,081,486 1,080,000 270,715 25%Fire Pension 1,950,605 1,967,860 1,944,000 448,298 23%Cable TV 958,516 914,678 941,012 229,815 24%

Notes1. This report was prepared using the methodology prescribed under the basis of budgeting.2. Operating transfers between funds are included within this report.3. Capital Project Funds are excluded.4. The Water, Sewer and Storm Water funds are adopted as one legal fund but are shown separately for informational purpose Private capital contributions, adjustments for doubtful accounts and interfund transfers are included in this report and are ca


City of VancouverOutstanding Debt - Revenue BondsThrough First Quarter 2014

True FinalIssue Original Issue Amount Interest MaturityDate Purpose Amount Outstanding Cost (TIC) Date

Feb-04 Partially refund the 1999 Water/Sewer Revenue Bonds

26,250,000 20,225,000 3.998% 6/1/2020

Apr-05 Partially refund the 1997 Water/Sewer Revenue Bonds

42,520,000 21,630,000 4.037% 6/1/2018

Jun-08 Refund the 1998 Water/Sewer Revenue Bonds

20,230,000 8,135,000 3.551% 12/1/2016

49,990,000$


City of VancouverOutstanding Debt - General Obligation BondsThrough First Quarter 2014

True FinalIssue Original Issue Amount Interest MaturityDate Purpose Amount Outstanding Cost (TIC) Date

Oct-02 To partially refund 1993, 1996, 1997, 1999, & 2000 LTGO issues, and issue $1.6 million for the Oracle HR/Payroll Management System Implementation

39,365,000 14,750,000 4.08% 12/1/2018

Jul-05 To construct & equip the East Precinct Police facility, and to partially refund the 98A and 98B LTGO bonds.

18,090,000 11,885,000 4.07% 12/1/2026

Oct-06 To fund multiple transportation projects and to fund the Marshall Community Center remodel

14,785,000 11,200,000 4.25% 12/1/2025

Jun-08 To fund West Police Precinct, Fire Station 810 and Police Evidence

14,570,000 10,635,000 4.51% 12/1/2027

Jun-09 To fund multiple Transportation Projects

12,970,000 10,725,000 4.03% 12/1/2028

Dec-10 To fund the new City Hall and partially refund the 2001 LTGO bond issue

13,410,000 11,410,000 4.50% 12/1/2035

Jun-11 To fund Transportation Projects for the Waterfront Access Project

10,515,000 9,925,000 3.93% 12/1/2035

Jan-12 To partially refund the 2003 LTGO bond issue for the Firstenburg Community Center

15,945,000 15,830,000 3.26% 12/1/2029

Dec-12 To partially refund the 2002 LTGO & Refunding bond issue for VancouverCenter, West Coast Bank, and Street Improvements

9,515,000 9,465,000 2.36% 12/1/2025

Total Outstanding General Obligation Bonds 105,825,000$


City of VancouverInvestment Activity

First Quarter of 2014(Dollars in thousands)

As of Percent of As of Percent of12/31/2013 Portfolio 3/1/2014 Portfolio

State Investment Pool 98,878 39.4% 119,624 46.7%Clark County Investment Pool 48,671 19.4% 27,859 10.9%U.S. Agencies 69,548 27.8% 75,133 29.3%Corporate Bonds (Pension Fund) 1,013 0.4% 1,011 0.4%Municipal Bonds 21,757 8.7% 21,634 8.4%Zero Coupon 10,867 4.3% 10,879 4.2%

Total by Investment Type 250,734$ 100.0% 256,140$ 100.0%

As of Percent of As of Percent of12/31/2013 Portfolio Cumulative 3/1/2014 Portfolio Cumulative

Overnight 147,573 58.9% 58.9% 147,484 57.6% 57.6%One Month - 0.0% 0.0% - 0.0% 0.0%Two to Six Months - 0.0% 0.0% - 0.0% 0.0%Six Months to One Year - 0.0% 0.0% 10,613 4.1% 0.0%One to Five Years 103,161 41.1% 100.0% 98,043 38.3% 100.0%

Total by Length of Maturity 250,734$ 100.0% 256,140$ 100.0%

12 Months 11 Months


City of VancouverInvestment ActivityFirst Quarter 2014

Issuer Type of Investment Transaction Date Maturity Date Purchase or Deposit Redemption or

Withdrawal Effective Interest Rate

JanuaryClark County Treasurer* Local Government Investment Pool 14,705.22 50,315.11 0.38%FHLB U.S. Agency 1/28/2014 5,000,000.00 0.75%FHLMC U.S. Agency 1/28/2014 5,000,000.00 1.00%Washington State Treas Local Government Investment Pool 8,015,827.71 21,000,000.00 0.13%

18,030,532.93 21,050,315.11

FebruaryClark County Treasurer* Local Government Investment Pool 14,555.27 20,111,363.96 0.38%FNMA U.S. Agency 2/28/2014 5,000,000.00 1.00%Washington State Treas Local Government Investment Pool 34,617,899.30 8,000,000.00 0.11%

34,632,454.57 33,111,363.96

MarchClark County Treasurer* Local Government Investment Pool 13,538.12 691,994.10 0.38%FNMA U.S. Agency 3/11/2014 4,400,000.00 0.80%FNMA U.S. Agency 3/28/2014 5,000,000.00 1.13%Washington State Treas Local Government Investment Pool 18,102,718.01 14,000,000.00 0.11%

23,116,256.13 19,091,994.10 * Investments in the County and State Local Government Investment Pools can change daily, therefore no purchase dates are shownand the maturity dates are the last date for each reporting period.


City of Vancouver Investment Portfolio Including Call Dates1st Quarter 2014

Purchase Maturity Par Market Book Percent Cumulative Interest EffectiveIssuer Date Date Value Value Value of Portfolio Percent Rate YieldClark County LGIP 27,859,013.99 27,859,013.99 27,859,013.99 10.9% 10.88% 0.40 0.41 Washington State LGIP 119,624,823.80 119,624,823.80 119,624,823.80 46.7% 57.58% 0.10 0.11 Federal Home Loan Mortgage Co. 06/13/2013 11/01/2014 5,000,000.00 4,980,200.00 4,990,674.51 1.9% 59.53% 0.32 0.32 Vancouver Wash LTGO 06/22/2011 12/01/2014 300,000.00 302,217.00 300,000.00 0.1% 59.64% 1.38 1.40 Clark County WA Public Utiliti 02/01/2012 01/01/2015 145,000.00 150,246.10 149,505.23 0.1% 59.70% 0.79 0.80 Grant County Public Utility 06/13/2013 01/01/2015 5,000,000.00 5,181,700.00 5,172,959.68 2.0% 61.72% 0.37 0.37 Seattle WA Muni Light & Power 11/15/2011 04/01/2015 155,000.00 162,895.70 161,428.01 0.1% 61.79% 1.01 1.02 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000.00 5,000,650.00 5,000,000.00 2.0% 63.74% 0.69 0.70 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000.00 5,000,650.00 5,000,000.00 2.0% 65.69% 0.69 0.70 Federal Home Loan Mortgage Co. 07/20/2012 06/01/2015 1,705,000.00 1,689,518.60 1,694,846.58 0.7% 66.35% 0.52 0.52 Wells Fargo Bank 04/25/2013 07/01/2015 500,000.00 505,820.00 505,582.06 0.2% 66.55% 0.59 0.60 State of Washington 04/17/2013 07/01/2015 3,335,000.00 3,536,900.90 3,528,358.60 1.4% 67.93% 0.34 0.34 General Electric Capital Corp 01/30/2013 07/02/2015 500,000.00 506,795.00 505,609.05 0.2% 68.12% 0.71 0.72 Federal Nat'l Mtg. Assoc. 06/12/2013 07/28/2015 5,000,000.00 5,141,500.00 5,128,808.68 2.0% 70.13% 0.41 0.42 Federal Home Loan Mortgage Co. 10/30/2013 10/30/2015 5,000,000.00 5,001,350.00 5,000,000.00 2.0% 72.08% 0.49 0.50 Federal Home Loan Mortgage Co. 03/22/2013 11/24/2015 5,000,000.00 5,004,800.00 5,005,564.83 2.0% 74.03% 0.38 0.38 Vancouver Wash LTGO 06/22/2011 12/01/2015 25,000.00 25,509.50 25,000.00 0.0% 74.04% 2.22 2.25 Clark County WA Public Utiliti 03/08/2012 01/01/2016 330,000.00 355,056.90 351,262.43 0.1% 74.18% 1.21 1.23 City of Seattle 06/04/2013 01/01/2016 2,500,000.00 2,500,425.00 2,500,000.00 1.0% 75.16% 0.73 0.74 Federal Home Loan Bank 02/12/2013 02/12/2016 5,000,000.00 4,988,500.00 5,000,000.00 2.0% 77.11% 0.41 0.42 Federal Home Loan Mortgage Co. 10/29/2013 04/29/2016 5,000,000.00 5,002,100.00 4,999,611.11 2.0% 79.06% 0.64 0.65 Chelan County Public Utility D 11/09/2011 07/01/2016 500,000.00 518,485.00 500,000.00 0.2% 79.25% 1.83 1.85 State of Washington 03/27/2013 07/01/2016 5,320,000.00 5,315,265.20 5,313,136.11 2.1% 81.33% 0.83 0.84 City of Seattle 06/04/2013 10/01/2016 3,425,000.00 3,638,754.25 3,632,560.15 1.4% 82.75% 0.54 0.55 Federal Home Loan Bank 01/28/2014 10/28/2016 5,000,000.00 4,986,800.00 5,000,000.00 2.0% 84.70% 0.74 0.75 Federal Home Loan Mortgage Co. 10/22/2012 11/01/2016 5,000,000.00 4,987,350.00 5,000,000.00 2.0% 86.65% 0.62 0.63 Federal Nat'l Mtg. Assoc. 05/02/2013 11/15/2016 4,250,000.00 4,137,587.50 4,193,197.98 1.6% 88.29% 0.52 0.52 Federal Nat'l Mtg. Assoc. 02/06/2013 02/06/2017 5,000,000.00 4,974,050.00 5,000,000.00 2.0% 90.24% 0.74 0.75 Federal Farm Credit Bank 03/08/2013 02/22/2017 5,000,000.00 4,957,300.00 5,000,000.00 2.0% 92.19% 0.65 0.66 Federal Home Loan Mortgage Co. 01/28/2014 04/28/2017 5,000,000.00 5,002,500.00 5,000,000.00 2.0% 94.14% 0.99 1.00 Federal Farm Credit Bank 05/16/2013 05/16/2017 5,000,000.00 4,941,500.00 4,998,906.25 2.0% 96.10% 0.72 0.73 Federal Nat'l Mtg. Assoc. 10/17/2012 07/17/2017 5,000,000.00 4,924,450.00 5,000,000.00 2.0% 98.05% 0.86 0.88 Federal Nat'l Mtg. Assoc. 03/28/2014 09/28/2017 5,000,000.00 4,982,750.00 5,000,000.00 2.0% 100.00% 1.27 1.29

Avg Maturity 11 Months 256,140,849.05$ Total Portfolio Balance


Documents

Quarterly Financial Report Q1 2014 · revenues received in the first quarter of 2014, compared to $19.5 million received during the comparable time period of 2013. Revenues in all