second quarter financial report - 2012 · • the local portland-vancouver metro inflation rate is...

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Quarterly Financial Report

Second Quarter 2012

Second Quarter 2012 Financial Report City of Vancouver 1

Second Quarter 2012 Financial Report (This report contains un-audited financial information as of July 24, 2012)

Table of Contents

Section Page

I. Executive Summary 3 II. Economic Report 4 III. Financial Results 11 IV. Outstanding Debt 21 V. Investments 22 VI. Interfund Loans 24

Attachments

A Expenditure Summary by Fund 25 B Revenue Summary by Fund 27 C Outstanding Debt 29 D Investment Portfolio Tables 31

- - - - - 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

It appears that the worldwide economic conditions have worsened since the beginning of the year. The pace of the US economic recovery has slowed down as well. The annual rate of growth of the Gross Domestic Product by the end of second quarter of 2012 has slowed to 1.5%. The national unemployment rate has been hovering at 8.2% in June of 2012. A number of risks will likely influence the world economy over the remainder of the year. The biggest risk is the economic slowdown in Europe and Asia and its potential impact on the US economy. General Fund revenues through the second quarter of 2012 totaled $64.9 million, approximately $1.2 million below the 2011 collections through the second quarter. The difference is largely due to the Brokered Natural Gas back payment received in the first half of 2011. The General Fund revenues seem to be coming in as forecasted, at 49% of the forecast for 2012. The following graph shows how the major General Fund revenues received through the first half of 2012 compare with comparable collections in 2011 and 2010.

Note: Utility tax revenue above includes the tax on Solid Waste, previously excluded from this chart, Charges for Services exclude the Business License revenue.

Expenditures in the General Fund in the first half of 2012 totaled $52.5 million, compared to $52.7 million spent in the first half of 2011. Expenditures through the second quarter represent 40% of the total budget for the year. General Fund transfers supporting other funds and payments to the county for public safety services normally are timed with the cash flow needs and the billing from the county. Thus, they typically take place in the second half of the year. Revenue in all other city funds seems to be on track.


The General Fund operating cash balance was $34.2 million at the end of June 2012. The balance was $2.8 million higher than the cash balance at the end of June 2011.

II. Economic Report The world economy seems to be going through a rough patch in mid-2012. The pace of national recovery has slowed down since the first quarter. The annual rate of growth of the Gross Domestic Product in the second quarter of 2012 is estimated at 1.2%, compared to the annual pace of 1.9% in the first quarter.1 Overall, unemployment remains high, the housing sector remains depressed and consumer confidence is improving slowly. Following is specific information related to some of the major national economic indicators. • The national seasonally adjusted unemployment rate has remained at 8.2% for two months

in a row, compared to the rate of 8.5% at the end of 2011. Private payrolls have been increasing in professional and business sectors as well as healthcare and manufacturing. The total number of unemployed workers declined from approximately 14 million nation-wide to 12.7 million by the end of the second quarter,2 not including the “marginally attached to the labor force individuals”, those that have not searched for work in the 4 weeks preceding the survey.

• The latest press release from the Federal Open Market Committee confirmed that the “. . . U.S. economic activity continued to expand moderately;…strains in global financial markets continue to pose significant downside risks to the economic outlook.”3 The information reviewed at the meeting suggests that overall conditions in the labor market have not improved significantly in the last quarter. Consumer price inflation was subdued and not expected to increase significantly over the short term.

• One of the major measures of consumer confidence, the Conference Board’s compiled Index of Consumer Confidence, indicates that by the second quarter of 2012 the index has

1 http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm, Bureau of Economic Analysis 2 Bureau of Labor Statistics, Employment Situation – July 6, 2012, http://www.bls.gov/news.release/empsit.nr0.htm 3 Minutes of the Federal Open Market Committee, July 20, 2012, http://www.federalreserve.gov/newsevents/press/monetary/20120620a.htm


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

declined to the level experienced at the beginning of the year and the trend has been negative for the second quarter. The Index is based on consumer perceptions of current business and employment conditions, as well as consumer expectations for the following six months period. 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. “Weakness is centered in the consumer's view of the future…”4 Substantially more consumers anticipate business conditions to worsen over the next six months; fewer see job availability improving; fewer see an increase ahead for their income. This last reading indicates a highly likely slowdown in retail sales in the immediate future. For the City, this will likely mean slower sales tax collections over the next several 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. The US LEI continued to increase over the first half of 2012, but the last two months have shown some weaknesses. According to Ken Goldstein, economist at the conference Board: “. . . the US economy is growing very slowly… the LEI is pointing to no strengthening over the next few months, as the economy continues to sail through strong headwinds domestically and internationally.”5

4 The Conference Board Consumer Confidence Index, 26 June, 2012, http://www.conference-board.org/data/consumerconfidence.cfm 5 The Conference Board US Business Cycle Indicators, US Leading Economic Indicators for the U.S. Increases, January 26, 2012, http://www.conference-board.org/press/pressdetail.cfm?pressid=4390


State and Local Economy • The Washington Economic and Revenue Forecast Council’s most recent revenue update

states that the state of Washington’s economy seems to be improving at a moderate pace.6 The outlook for improvement remains positive. State revenues are coming in line with expectations.

• At the national level, housing starts in the first half of 2012 were showing an overall slightly increasing trend. After a soft patch in May, June numbers show a significant increase of 23% over the last year’s numbers. There has been some volatility in the multifamily sector. Housing starts measure construction of residential units per month. The graph below shows national data. The sector remains under a continued pressure of excess supply of unsold homes.7

6. Economic and Revenue Update, State Economic and Revenue Forecast, State of Washington, http://www.erfc.wa.gov/publications/documents/jul12.pdf 7 http://www.nasdaq.com/markets/us-economic-calendar.aspx


• The City of Vancouver has experienced an unprecedented slowdown in the number and valuation of residential permits in late 2008, 2009, and 2010, with the trend continuing into 2011. The number of residential permits is the local data equivalent for housing starts. The first two quarters of 2012 saw a welcome change in the recent trend – a significant increase in the number of residential units permitted and their respective valuation. A large number of multi-family units is being permitted in 2012, consistent with 2011. In 2011, a total of 317 multi-family units were permitted, compared with 189 units permitted in 2010. A total of 149 units, valued at $9.7 million was permitted during the first half of 2012.

Data provided by the Department of Review Services, City of Vancouver.

• 2011 was a year of significant increase in the number, but largely, valuation of commercial project permitted at the City. The trend has not been sustained into the 2012.


Data provided by the Department of Review Services, 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 declined from 3% at the end 2011 to an annual rate of 1.7% in mid-2012, as reported by the U.S. Department of Labor. Inflation has been trending down, largely due to sharp declines in energy and gasoline prices, moderated by increases in food prices. 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 2011 was 3.1%. Energy price increases combined with higher prices for shelter


and food influenced the 2011 increase. The metro index reading for the first six months of 2012 will be published in late August of 2012.

Data prepared by Bureau of Labor Statistics8

• According to the Bureau of Labor Statistics, the county and the city unemployment rate at the end of May 2012 were at 9.7 percent and 9.4 percent respectively. The Bureau of Labor statistics has revised the City’s unemployment rate back to January of 2009. The resulting rate is significantly higher than was previously indicated, but closer in line with the Clark county unemployment rate. Since the City represents roughly half the population of the county, the rates of the two jurisdictions should be similar.

Data provided by the Bureau of Labor Statistics

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

year. The real estate market has been depressed since 2008, although the last several months of 2009 and the first two quarters of 2010 saw increases in the resale of lower priced houses mainly due to the federal homeowner subsidy. Once the subsidies ended, the number of houses sold declined. The first two quarters of 2012 indicate the continuation of the reduced activity trend.

8 Consumer Price Index, Portland Area – Second Half 2010 Area Prices up 0.8 Percent over the Past Six Months, up 0.9 Percent from a Year Ago, http://bls.gov/ro9/cpiport.htm


• Home prices continue to stabilize nationally and locally, according to the S&P’s Case-Shiller Home price Index. Data through April 2012 indicates that locally, prices might have stabilized. The annual decline in house prices for the Portland metro area is estimated at 1 percent on a year-over-year basis as of April compared to a 9% decline for April of 2011 to April of 2010.

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

• The median home price for Clark County reached the same median home price range experienced in the county in 2004. The median sale price in Vancouver at the end of June 2012 is estimated at $171,800, as reported by Zillow, representing a 9% decline compared to comparable data from 2010. The graph below represents home sales and changes in the median home price over time.

Portland Metro Home Prices and Home Values, Median Sale Price

Source of Data: Zillow


III. Financial Results General Fund REVENUES

General Fund revenues through the second quarter of 2012 totaled $64.9 million, $1.2 million below the 2011 collections over the same time period. The difference is entirely due to the City receiving the Brokered Natural Gas reimbursement in the first half of 2011. No comparable reimbursement is anticipated in 2012. Revenues are coming in as anticipated, 49% of annual General Fund revenues was collected by the City by June of 2012. 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, previously excluded from this chart, 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 2012 taxes. The total City

of Vancouver levy rate in 2012 is $2.9886 per $1,000 of assessed value.


• The City experienced a 9% reduction in assessed valuation during 2009 for 2010 taxes,

9.75% in 2010 for 2011 taxes, and 1.3% for 2012 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.

• A total of $22.6 million was collected through the second quarter of 2012 in property

taxes, compared to $22.1 million collected during the same time period in 2011. The difference in revenue is largely due to the 1% levy increase and timing of the collections.

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 $12.5 million in sales tax revenue was received through the second quarter of

2012, or 54% of forecast, slightly higher than anticipated. Collections are approximately $300 thousand higher than collections in the first half of 2011. 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.


• 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, but have declined significantly since. Retail sales at the national level are higher than those in 2008, however, locally, the economy has been dependent on a robust new construction-related sales tax. With the real estate market remaining in a depressed state, local retail sales continue to gradually improve, but it is not yet close to the revenue level seen in 2007 and 2008.

Utility Taxes • 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 $9 million through the second quarter of

2012, compared with collections of $11.2 million during the comparable period of 2011. The Brokered Natural Gas one-time reimbursement payment to the City for the deferred taxes from 2009 and 2010 took place early in 2011. No comparable one-time revenues are anticipated to be received in 2012.

• Natural gas tax revenues through the second quarter totaled $1.5 million, or 36% of the

forecast for the year. The city received $3.5 million during the comparable time period in 2011, due to the abovementioned one-time in nature reimbursement.

• Telephone tax revenues through the second quarter of 2012 totaled $2.7 million, or 42%

of the forecast for the year, approximately $100 thousand below the 2011 second quarter collections.


• A total of $4.4 million was collected in electrical tax revenue through the second quarter of 2012, approximately 1% below forecast and $74 thousand below comparable collections from 2011.

• The revenue from cable franchise fees received through the second quarter of 2012 totaled $449 thousand, or 31% of the forecast for the year, very close to the 2010 collections. Revenue received represents one out of four annual payments.

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%.

• Through the second quarter of 2012, the City received $8.2 million in utility tax on city-

owned utilities, compared with $8 million collected in 2011, significantly below projections. The projections have incorporated the rate increases on the underlying sewer fee revenue, but collections will likely be short of forecast by close to $1.5 million.


• In 2012, residential water revenues generated 83% of the total water user revenues, while residential sewer fee revenues made up 68% of the total sewer user revenues.

Grant & Entitlement Revenues • Grant revenues recognized in 2012 were $0.7 million, or 15% of the anticipated grant

revenues to be received in 2012. The majority of grants reimburse the City for the eligible expenses after these expenditures occur. One of the largest city grants in 2012 was the COPS grant. The grant funds 10 Police positions. The City has been recruiting to fill the grant funded positions, but the majority of the positions remained vacant through the second quarter of 2012.

Charges for Goods and Services To-date, the City recorded approximately $3.1 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. 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. So far, permits remain at the level of the 2011 collections. Through the second quarter of 2012 a total of $341 thousand was collected by the City.


Recreation Program Fees A total of $2.4 million in recreation fee revenue was collected through the second

quarter of 2012, compared to $2.8 million collected in 2011. In 2012, reductions on the expenditures side were implemented to balance the expenditure side to the lower fee and permit revenues. So far in 2012, collections are coming in as anticipated.

EXPENDITURES

• General Fund expenditures the first half of 2012 were $52.5 million, or 40% of the budget, approximately $100 thousand higher than the comparable 2011 expenditures.

• Expenses vs. budget by category within the General Fund are shown in the chart below. The pace of spending in 2012 is very comparable to that in 2011.

• Salaries and benefits expenditures totaled $22 million through the second quarter of 2012, compared to the budget of $48.9 million and $22.1 million spent in 2011.

• General Fund expenditures in the supplies and services category through the second quarter were at $5.5 mil, approximately $0.9 mil lower than those in 2011.

• 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 $22.1 million, approximately $900 higher than in 2011.

Cash Balance


• The General Fund operating cash balance was $34.2 million at the end of June 2012. This is $2.8 million higher than the cash balance at the end of June 2011.

• The General Fund emergency reserve was $8.89 million at the end of June 2012, compared to $8.93 million on June 2011. 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 undesignated fund balance in the General Fund at the end of 2011 was $26.9 million, (in addition to the General Fund Emergency Reserve of $8.96 million and the capital reserves for art-related projects of approximately $900 thousand). Approximately $1.9 million of this amount was carried forward into 2012. The majority of the fund balance 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. A sufficient operating fund balance eliminates the need for short term borrowing.

Street Fund

• Expenditures in the Street Fund were at $4.2 million, or 25% of the 2012 budget,

approximately $1.3 million below the comparable 2011 expenditures. Several large projects were initiated in 2011, but were not completed in that year and will likely be completed in 2012-2013. The largest of these projects is the pavement replacement in the industrial area south of the rail road as part of a match for the EDA projects, received by the City for the Waterfront Access Project.

• The second quarter of 2012 Street Fund revenues, excluding a budgeted general fund

transfer, totaled $2.2 million, comparable to the revenue collected in 2011. 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.

• The first half of 2012 MVFT revenues were $0.5 mil, in line with the comparable 2011

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 negatively impacted 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 have been declining since 2006. The 2008 revenue collections were 38% below the revenues collected during the 2007. The 2009 revenues were 16% lower than those in 2008. The 2010 collections were approximately 15% lower than the 2009 collections. The 2011 collections showed some improvement over 2010. So far in 2012, the REET revenue is coming in slightly below that in 2011.

• REET revenue received through the second quarter of 2012 totaled $0.5 million,

approximately $35 thousand below the comparable 2011 collections. The graph below demonstrates fluctuations in REET collections over the past nine 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 and the Fire District 5 transfer) through the second quarter of 2012 were $0.7 mil, mostly representing permit fees and SAFER grant.

• Total operating Fire Operating expenditures through the second quarter of 2012 were $14.8 million, including the transfer from Fire Operating to Fire Equipment Fund.


Building Inspection Fund

• Building inspection fee revenues received through the second quarter of 2012 totaled $1.5 million, approximately $200 thousand lower than in 2011. There was a significant increase in the number and valuation of residential permits. Commercial activity has cooled down from the 2011 levels.

• Building Fund expenditures were at $1.8 million in the first half of 2012.

• Approximately $700 thousand of the operating fund balance was utilized in 2009 to

support operations of the department. Approximately $1.5 million of the fund balance was utilized in 2010 to support a portion of the cost related to the purchase of the new permanent space for Building Fund’s employees. Approximately $400 thousand of the fund balance was utilized in 2011, largely for Hansen system implementation and tenant improvements of the Permit Center. The 2011-2012 Budget anticipates utilizing the fund balance in the Building Fund to fund a replacement of the permitting system, Tidemark, in 2011 and 2012.

Parking Fund

• Fee and fine revenues in the first half of 2012 were $1.1 million. These revenues are matching the revenue collections of 2011.

• The General Fund support of the Parking fund remained at the $1.25 million level in 2011

and is anticipated to stay at the same level in 2012. Over time, the fund is anticipated to become self-supporting.


• Operating expenses through the second quarter totaled $1.1 million, approximately $150 thousand lower than those in 2011.

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 $9.6 million through the second quarter of 2012, approximately $600 thousand above the 2011 fee collections, largely driven by the residential sector.

• Expenditures in the Water fund through the second quarter of 2012 totaled $12.2 million.

Sewer

• Sewer charge revenues in the Sewer Fund came in at $16.9 million through the second quarter of 2012, approximately $750 thousand above the comparable 2011 revenues. Sewer rates were increased by 9% in 2011 and by another 6.5% in 2012.

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

received resulting from the sluggish development activity in the City. 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 2012, the sewer fund is on track to borrow approximately $1 million from the water fund.

• Sewer expenditures through the first half of 2012 totaled $21.2 million, approximately $600

thousand above those in 2011, significantly above fee revenue collections. Storm Water

• Through the second quarter of 2012, $5 million in storm water fee revenue was received. Collections came in as anticipated, comparable to those in 2011. Overall, the expenditures in the Storm Water fund through the second quarter of 2012 were $4.5 million.

IV. Outstanding Debt

• At the end of the second quarter of 2012, the City had about $122 million of general obligation (G.O.) debt outstanding and approximately $61.1 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 4.06% while the average interest rate for the City’s revenue bond debt is 4.01%.

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 (FOMC) met in April 2012 suggests that the economy has been expanding moderately this year, however, growth in employment has slowed recently with an elevated unemployment rate of over eight percent. Business fixed investment has continued to advance. Household spending has been rising but at a much slower pace. While there appears to be some sign of improvement, the housing sector still remains depressed. Inflation has decreased, this being a reflection of the lower prices of crude oil and gasoline. Longer-term inflation expectations have remained stable. Consistent with its statutory mandate, the FOMC seeks to foster maximum employment and price stability. They expect economic growth over coming quarters to be modest and consequently anticipate that the unemployment rate will decline only gradually toward levels consistent with its mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The FOMC also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee's dual mandate. The FOMC has decided to keep the target range for the federal funds rate at 0 to ¼ percent and anticipates that economic conditions are likely to warrant exceptionally low levels for the federal fund rate at least through 2014.


The overall yield curve decreased during the second quarter of 2012. The yield on the three-month Treasury has increased ending at 0.09% at the end of the second quarter. The six-month Treasury yield has stayed the same maintaining at 0.152%. The yield on the two-year Treasury decreased from 0.34% to 0.29%. The thirty-year Treasury yield decreased, ending the second quarter at 2.70% from 3.28%. Market risk of the City’s portfolio is low. Investment maturities have increased due to the Federal Reserve’s statement of continued low overnight rates into 2014. 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 second quarter of 2012 was $227.2 million compared to $222.4 million on March 31, 2012. The portfolio had an average yield of 0.49% year to date, which exceeds the projected yield of .42% for 2012. 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 34 bps higher than the State Investment Pool, which had an average yield of 0.14%. The State Pool has a weighted average maturity of 40 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 second quarter of 2012 to all funds is approximately $552,215 compared to $865,990 during the same period of 2011. 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. Four funds required interfund loans through the second quarter of 2012.

City of Vancouver Outstanding Interfund LoansThrough Second Quarter 2012

Balance InterestOutstanding Interest Expense

Fund Description 06/30/12 Lending Fund Rate Paid in 2012 Repayment Plan

109 Tourism Fund - 001 0.49% 0.90$

Loan due to timing between when deposits received vs.

expenditures paid

475 Sewer Utility Fund 970,887$ 445 0.49% 1,029.41$


expenditures paid

477 Sewer System Development Fund -$ 475 0.49% 0.21$


expenditures paid

478 Sewer Construction Fund -$ 448 0.49% 104.85$


expenditures paid

Total Outstanding Interfund Loan Balance 970,887$


Quarterly Expense Summary Attachment ACity of VancouverSecond Quarter of 2012 Financial Report

2010 2011 Period Ending 2012 Period Ending Percent ofExpenses Actual JUN-11 Budget JUN-12 12 Budget

GENERAL FUNDCity Council 312,793 361,816 167,398 445,672 165,979 37%City Manager's Office 1,887,434 2,392,922 1,119,083 2,832,632 1,121,246 40%Economic Development 400,999 - - - - Legal Services 3,144,812 3,193,747 1,531,983 3,391,788 1,594,058 47%Development Review Services 4,205,365 3,551,181 1,697,809 3,869,360 1,474,713 38%Long Range Planning 1,545,233 1,707,946 870,074 1,880,257 795,533 42%Parks Administration 1,236,754 1,300,966 606,103 1,349,849 509,183 38%Parks, Trails, & Natural Resources 1,001,086 936,037 448,230 874,433 442,401 51%Recreation Services 7,152,892 6,678,995 3,081,079 5,907,034 2,671,707 45%Community Services 396,836 - - - - Police 31,495,571 31,358,106 15,851,276 34,396,074 16,063,062 47%Transportation 3,014,150 926,411 602,576 980,327 226,600 23%Grounds Maintenance 3,270,567 2,789,485 1,194,523 3,210,698 1,223,589 38%Facilities Maintenance 4,321,929 2,817,771 1,227,309 3,542,535 1,368,880 39%Public Works Administration 175 314,382 142,272 299,196 138,567 46%Financial and Mgmt Services 3,875,114 3,772,267 1,836,367 4,193,440 1,864,505 44%Procurement & Property Services 213,947 413,960 174,645 444,653 158,985 36%Media Services 519,133 55,556 40,224 79,644 1,500 2%Information Technology 3,326,137 3,094,618 1,408,532 2,878,207 1,358,091 47%COBRA 294,800 266,371 156,664 200,000 81,053 41%Human Resources 1,203,389 1,275,453 603,741 1,479,789 579,879 39%

Subtotal Non-Gen. Governmental 72,819,112 67,207,991 32,759,888 72,255,588 31,839,531 44%General Governmental

Child Advocacy Intervention 332,280 235,600 141,360 329,835 196,202 59%Voter Registration - - - 213,722 - 0%City Cable Programming 321,000 330,630 330,630 340,549 170,274 50%Fire District #6 16,358 16,042 16,042 - 16,392 Emergency Mgmt (CRESA) 120,753 134,120 100,590 144,024 103,894 72%Air Pollution Control Authority 53,192 53,985 53,985 59,320 54,115 91%Humane Society 183,410 150,769 48,463 197,511 45,985 23%Animal Control 289,000 90,101 48,167 383,625 99,702 26%Human Services 176,000 - - 1 - 0%Alcoholism Support 51,385 29,223 10,116 46,697 8,517 18%Regional Transp Council 21,300 21,300 21,300 21,305 21,300 100%Election Support 163,635 368,592 - 156,150 9,102 6%Celebrate Freedom 110,000 110,000 110,000 117,835 110,000 93%Association of Washington Cities 70,379 142,059 71,723 76,908 - 0%Chamber of Commerce - - - 6,500 - 0%Opportunity Reserve 37,781 49,495 31,726 173,505 33,519 19%Miscellaneous 332,195 2,342,128 68,208 3,540,491 98,608 3%Court Cost District 135,844 129,421 21,647 162,359 32,281 20%Public Defender 603,901 617,292 360,798 558,523 364,728 65%County Jail Costs 3,140,293 3,355,126 752,801 4,886,193 817,189 17%County Corrections Costs 1,401,439 1,070,118 488,024 2,031,337 471,049 23%County District Court Costs 1,044,899 996,086 261,032 1,489,946 247,619 17%General Obligation Debt Payment 6,210,854 6,963,275 1,263,686 7,446,364 1,225,444 16%General Govt Support 35,596,431 39,450,986 15,725,623 37,982,225 16,507,279 43%

Subtotal General Govermental 50,412,330 56,656,347 19,925,919 60,364,925 20,633,199 34%Total General Fund 123,231,442 123,864,338 52,685,808 132,620,513 52,472,730 40%

SPECIAL REVENUE FUNDSStreet 12,635,258 14,368,554 5,322,721 16,927,529 4,174,637 25%Consolidated Fire 32,049,820 30,686,193 14,593,404 34,632,417 14,914,005 43%Drug Enforcement 125,236 113,526 63,022 151,583 44,480 29%Community Development Block Grant 4,597,635 2,318,532 739,660 4,007,185 1,023,245 26%Tourism 832,630 631,871 266,516 1,243,507 500,932 40%Criminal Justice/LLEBG 104,098 113,343 56,670 106,515 53,256 50%


Quarterly Expense Summary Attachment ACity of VancouverSecond Quarter of 2012 Financial Report

2010 2011 Period Ending 2012 Period Ending Percent ofExpenses Actual JUN-11 Budget JUN-12 12 Budget

Real Estate Excise Tax - I 3,310,154 1,645,699 467,686 1,996,317 475,830 24%Transportation Special Revenue 2,343,770 3,170,330 1,027,134 3,130,626 711,762 23%Parks & Recreation Special Revenue 37,216 50,697 30,746 83,408 23,186 28%Parks Construction - Residual REET 628,282 489,591 19,480 252,204 132,246 52%Downtown Initiatives 147,333 92,986 53,156 95,953 56,128 58%VNHR Properties 363,590 614,257 303,623 332,415 120,756 36%Senior Messenger 287,126 271,020 141,475 303,396 121,972 40%TIF Funds 1,254,092 586,788 202,948 5,556,502 472,502 9%PIF Funds 5,111,973 912,826 775,221 4,485,311 491,201 11%Miscellaneous Special Revenue Funds 61,342 286,587 261,930 55,654 36,574 66%

DEBT SERVICE FUNDSG O Debt Service Fund 13,967,676 11,224,357 2,504,590 28,451,926 18,888,036 66%L I D Debt Fund 4,237 4,035 - 7,716 - 0%

ENTERPRISE FUNDSStorm Water 10,321,775 10,625,194 4,614,091 12,101,735 4,445,630 37%Water 26,685,798 24,222,075 11,449,891 29,043,938 12,227,089 42%Sewer 36,158,240 37,353,990 20,596,962 39,880,646 21,199,747 53%Building Inspection 5,590,725 4,522,658 1,742,486 3,991,803 1,817,198 46%Solid Waste 2,060,587 2,062,335 835,596 3,135,445 918,505 29%Parking 2,539,999 2,683,919 1,309,281 3,315,080 1,143,484 34%Tennis Center 1,052,620 1,114,667 598,538 1,173,885 532,769 45%Fire Emergency Equipment Services - - - - - Airpark 359,207 482,300 201,549 783,856 233,854 30%

INTERNAL SERVICE FUNDSFire Shop Fund 921,387 389,704 - 628,965 628,964 100%Equipment Services Operations Fund 3,341,710 4,396,367 2,163,582 4,916,444 2,273,409 46%Equipment ER&R Capital 946,351 2,179,539 389,392 2,112,521 943,012 45%Technology ER&R 2,665,458 2,426,507 1,201,560 2,827,262 1,086,804 38%Self Insurance 4,240,189 5,094,655 2,095,297 4,669,348 1,392,697 30%Self Insurance Benefits 14,727,102 13,617,240 7,835,380 19,377,323 7,504,060 39%Print Shop & Mail Services 511,517 232,109 114,998 270,300 91,162 34%

AGENCY FUNDSSWAT Team 138,777 130,846 82,846 185,574 84,374 45%Police Pension 854,365 882,708 450,059 1,121,852 412,302 37%Fire Pension 1,656,520 1,690,418 869,456 1,795,643 912,222 51%Cable TV 1,055,092 1,657,919 884,821 1,212,056 390,672 32%

Notes1. This report contains the unaudited results through the end of 2nd Quarter of 2012.2. This report was prepared using the methodology prescribed under the basis of budgeting.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 purposes.


Quarterly Revenue Summary Attachment BCity of VancouverSecond Quarter of 2012 Financial Report

2011 20122010 2011 Period Ending % of 2012 Period Ending % of

Actual Actual JUN-11 Forecast Forecast JUN-12 ForecastGENERAL FUNDTax Revenue

Property Tax 39,404,209 40,334,028 22,129,208 55% 40,969,907 22,613,568 55%Sales Tax 23,842,375 24,456,197 12,212,640 50% 23,458,962 12,550,913 54%Electrical Tax 7,531,924 7,987,586 4,474,461 56% 8,022,275 4,400,989 55%Natural Gas 2,384,751 4,506,777 3,498,108 78% 4,148,166 1,503,521 36%Telephone 5,716,989 5,483,887 2,766,901 50% 6,300,363 2,663,646 42%Cable Franchise Fee 1,306,513 1,755,859 466,681 27% 1,510,592 448,592 31%Water/Sewer/Storm Water 12,694,856 13,177,598 6,151,739 47% 13,853,214 6,354,979 46%Solid Waste Utility Tax 3,643,069 3,614,091 1,800,401 50% 4,329,381 1,799,842 42%Gambling and Leasehold Taxes 550,039 625,819 312,113 50% 557,883 346,120 62%

Subtotal Tax Revenue 97,074,725 101,941,842 53,812,251 53% 103,150,743 52,682,172 51%Business Licenses 830,460 820,033 435,095 53% 1,036,005 467,122 45%Grants & Entitlements 2,237,302 2,370,682 920,740 39% 4,515,728 678,214 15%State Shared Revenues 3,100,300 2,926,758 1,040,697 36% 3,074,257 1,285,050 42%Parks Contract with Clark County 1,116,808 961,694 406,293 42% 964,649 277,406 29%Charges for Services - - - - -

Planning Permits 468,022 510,225 313,597 61% 466,372 308,679 66%Recreation Program Fees 5,534,915 4,719,082 2,782,671 59% 4,097,177 2,442,636 60%Interfund Service Charges 11,088,306 7,209,003 3,647,543 51% 8,535,039 4,021,397 47%Other Charges & Services 631,046 614,254 335,630 55% 674,583 341,204 51%

Subtotal Charges for Services 17,722,289 13,052,564 7,079,441 54% 13,773,171 7,113,916 52%District Court 1,657,591 1,615,388 810,406 50% 1,680,160 917,188 55%Miscellaneous 2,907,663 3,431,364 1,428,108 42% 3,336,997 1,318,666 40%Operating Transfers 580,994 223,442 70,554 32% 414,637 113,546 27%

Total General Fund 127,228,132 127,343,766 66,003,585 52% 131,946,347 64,853,279 49%

SPECIAL REVENUE FUNDSStreet Fund

Real Estate Excise Tax 1,250,479 1,383,286 512,440 37% 1,425,600 475,841 33%State Shared Revenue 3,563,122 3,406,732 1,657,633 49% 3,737,376 1,566,838 42%Permits 324,176 521,769 154,938 30% 249,963 190,011 76%Miscellaneous 251,799 135,791 99,532 73% 305,000 9,988 3%Operating Transfers 8,539,798 9,244,038 2,267,540 25% 9,364,098 4,709,099 50%

Total Street Fund 13,929,374 14,691,617 4,692,083 32% 15,082,037 6,951,778 46%Consolidated Fire Fund

Service Charges-Fire Dist. #5 8,235,441 8,583,966 3,914,322 46% 9,832,713 4,112,932 42%Permit/Other Fees 654,684 584,496 407,865 70% 626,069 377,276 60%Miscellaneous 334,489 125,357 67,151 54% 378,086 338,653 90%Operating Transfers 25,018,414 23,329,324 12,341,880 53% 25,312,719 11,485,885 45%

Total Consolidated Fire Fund 34,243,028 32,623,143 16,731,218 51% 36,149,587 16,314,746 45%Other Special Revenue Funds

Drug Enforcement 217,174 245,479 124,525 51% 247,797 159,999 65%Community Development Block Grant 4,618,359 2,114,414 737,275 35% 3,982,965 864,882 22%Tourism 1,190,088 1,269,509 530,288 42% 1,113,332 549,490 49%Criminal Justice/LLEBG 207,792 209,000 106,674 51% 219,226 101,568 46%Transportation Special Revenue 2,113,738 2,156,694 1,139,439 53% 2,318,870 1,254,041 54%Real Estate Excise Tax - I 1,399,217 1,456,809 493,539 34% 1,528,600 437,920 29%Parks & Recreation Special Revenue Fund 20,907 67,730 31,494 46% 72,000 12,540 17%Parks Construction - Residual REET 10,788 4,644 2,903 62% 2,000 588 29%Downtown Initiatives 123,602 140,929 68,922 49% 137,242 79,606 58%VNHR Properties 406,863 350,733 166,603 48% 457,073 159,080 35%Senior Messenger 315,746 295,995 135,876 46% 285,357 120,157 42%TIF Funds 599,176 598,042 146,445 24% 458,200 235,503 51%PIF Funds 1,093,404 1,130,423 496,488 44% 609,910 579,525 95%Miscellaneous Special Revenue Funds 20,872 203,238 6,043 3% 20,000 6,540 33%

DEBT SERVICE FUNDSG O Debt Service Fund 13,969,862 11,222,171 2,502,404 22% 28,979,630 18,888,036 65%L I D Fund 1,165 2,167 347 16% 7,766 255 3%

ENTERPRISE FUNDSStorm Water

Storm Drainage Fees 10,028,578 10,155,310 5,065,146 50% 10,340,864 5,023,629 49%Private Capital Contributions 226,131 610,110 119,966 20% 500,000 396,134 79%Interfund Transfers 58,692 137,999 136,175 99% 56,237 - 0%Miscellaneous 16,612 36,077 22,916 64% 757,650 77,101 10%

Total Drainage Fund 10,330,013 10,939,495 5,344,203 49% 11,654,751 5,496,864 47%Water

Water SalesResidential 17,746,026 17,709,372 7,621,346 43% 18,353,420 8,031,853 44%


Quarterly Revenue Summary Attachment BCity of VancouverSecond Quarter of 2012 Financial Report

2011 20122010 2011 Period Ending % of 2012 Period Ending % of

Actual Actual JUN-11 Forecast Forecast JUN-12 ForecastCommercial 3,091,225 3,237,111 1,195,591 37% 3,137,145 1,301,486 41%Governmental 440,844 452,898 222,173 49% 519,169 279,032 54%

Subtotal Water Sales 21,278,095 21,399,381 9,039,109 42% 22,009,734 9,612,371 44%Private Capital Contributions 334,907 1,352,243 398,692 29% 1,000,000 437,669 44%Interfund Transfers 1,982,728 3,551,957 16,870 0% 3,636,538 2,434 0%Miscellaneous 4,387,893 4,446,576 2,111,541 47% 3,832,463 1,849,479 48%

Total Water Fund 27,983,624 30,750,156 11,566,211 38% 30,478,735 11,901,953 39%Sewer

Sewer ChargeResidential 21,196,135 22,552,519 11,158,391 49% 23,851,216 11,857,138 50%Commercial 5,055,296 5,645,718 2,539,943 45% 6,011,043 2,770,360 46%Governmental 4,538,458 4,888,956 2,431,099 50% 5,153,774 2,264,823 44%

Subtotal Sewer Charges 30,789,889 33,087,193 16,129,434 49% 35,016,033 16,892,321 48%Private Capital Contributions 294,320 647,932 84,954 13% - 161,840 Interfund Transfers 3,217,505 2,000,000 - 0% 1,000,000 600,000 60%Miscellaneous 4,994,797 1,581,933 808,145 51% 1,697,565 781,080 46%

Total Sewer Fund 39,296,511 37,317,057 17,022,533 46% 37,713,598 18,435,241 49%Building Inspection

Permits 2,730,437 3,188,276 1,702,846 53% 2,352,807 1,523,303 65%Miscellaneous 83,343 96,019 35,025 36% 246,062 27,908 11%Interfund Services 1,554,397 853,645 416,239 49% 991,980 313,884 32%

Total Building Fund 4,368,177 4,137,940 2,154,110 52% 3,590,849 1,865,096 52%Solid Waste

Franchise Fee-Solid Waste 2,217,325 2,007,402 1,003,701 50% 2,067,624 858,536 42%Service Charges-Recycling 746,925 1,269,013 579,922 46% 717,434 582,051 81%Miscellaneous 119,331 87,090 10,122 12% 34,008 (5,384) -16%

Total Solid Waste Fund 3,083,581 3,363,505 1,593,746 47% 2,819,066 1,435,203 51%Parking

Parking Fines 615,586 551,509 295,533 54% 642,604 293,038 46%Parking Meters & Lots 1,474,197 1,500,282 758,952 51% 1,551,440 746,296 48%Miscellaneous 954 95,110 62,381 66% 120,400 52,370 43%Operating Transfers 1,245,540 1,245,540 - 0% 1,245,540 - 0%

Total Parking Fund 3,336,277 3,392,441 1,116,865 33% 3,559,984 1,091,703 31%Tennis Center

Membership Fees 264,942 273,889 140,738 51% 279,847 144,405 52%Instruction Fees 532,592 580,117 303,723 52% 561,487 346,949 62%Miscellaneous 69,383 117,508 7,035 6% 8,000 5,885 74%Operating Transfers 297,533 211,265 60,672 29% 226,976 74,124 33%

Total Tennis Center Fund 1,164,450 1,182,778 512,168 43% 1,076,310 571,363 53%Other Enterprise Funds

Fire Emergency Equipment Services 985,196 3,562 3,060 86% - 736 Pearson Airfield 629,216 696,173 310,399 45% 719,097 339,181 47%Utility Customer Assistance - 100,001 - 0% - 4,294

INTERNAL SERVICE FUNDSEquipment Services Operations Fund 3,222,280 5,285,440 2,483,144 47% 4,174,619 2,283,698 55%Equipment ER&R Capital 1,623,745 2,812,458 1,317,947 47% 2,649,575 1,478,231 56%Technology ER&R 2,821,550 2,152,369 1,028,252 48% 2,197,553 1,026,577 47%Self Insurance 4,772,292 4,119,232 1,806,576 44% 5,765,940 2,137,108 37%Self Insurance Benefits 13,091,258 13,193,090 7,201,834 55% 18,935,000 6,723,806 36%Printshop & Mail Services 461,653 278,499 149,046 54% 262,996 121,532 46%

AGENCY FUNDSSWAT Team 128,625 143,423 67,047 47% 162,795 69,726 43%Police Pension 1,067,893 1,075,256 537,565 50% 1,080,000 540,506 50%Fire Pension 1,806,350 1,982,684 1,073,157 54% 2,005,060 1,051,333 52%Cable TV 964,577 1,613,726 657,104 41% 941,012 397,223 42%

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 purposes. Private capital contributions, adjustments for doubtful accounts and interfund transfers are included in this report and are categorized as "Misc


City of VancouverOutstanding Debt - General Obligation BondsThrough Second Quarter 2012

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 30,210,000 4.08% 12/1/2025

Jun-03 To construct & equip the Firstenburg Community Center, and remodel Marshall & Luepke Center

18,520,000 990,000 4.43% 12/1/2013

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

18,090,000 14,860,000 4.07% 12/1/2026

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

14,785,000 12,405,000 4.25% 12/1/2025

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

14,570,000 11,980,000 4.51% 12/1/2027

Jun-09 To fund multiple Transportation Projects

12,970,000 11,755,000 4.03% 12/1/2028

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

13,410,000 13,390,000 4.50% 12/1/2035

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

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

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

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

Total Outstanding General Obligation Bonds 122,050,000$


City of VancouverOutstanding Debt - Revenue BondsThrough Second Quarter 2012

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

Jul-93 Build Eastside treatment plant, upgrade Westside treatment plant

38,000,000$ 3,285,000$ 5.44% 6/1/2013

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

26,250,000 21,030,000 3.998% 6/1/2020

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

42,520,000 25,345,000 4.037% 6/1/2018

Jun-08 Refund the 1998 Water/Sewer Revenue Bonds

20,230,000 11,480,000 3.551% 12/1/2016

61,140,000$


City of VancouverInvestment ActivitySecond Quarter of 2012

(Dollars in thousands)

As of Percent of As of Percent of3/31/2012 Portfolio 6/30/2012 Portfolio

State Investment Pool 104,258 45.0% 107,997 46.6%Clark County Investment Pool 52,613 22.7% 52,384 22.6%U.S. Agencies 64,236 27.7% 69,301 29.9%Corporate Bonds (Pension Fund) 505 0.2% 504 0.2%Municipal Bonds 1,545 0.7% 1,538 0.7%

Total by Investment Type 223,157$ 100.0% 231,724$ 100.0%

As of Percent of As of Percent of3/31/2012 Portfolio Cumulative 6/30/2012 Portfolio Cumulative

Overnight 156,870$ 70.3% 70.3% 160,382$ 69.2% 69.2%One Month - 0.0% 70.3% 37 0.0% 69.2%Two to Six Months 2,993 1.3% 71.6% 7,996 3.5% 72.7%Six Months to One Year 5,525 2.5% 74.1% 504 0.2% 72.9%One to Five Years 57,769 25.9% 100.0% 62,805 27.1% 100.0%

Total by Length of Maturity 223,157$ 100.0% 231,724$ 100.0%

9.8 Months 10.9 Months


City of VancouverInvestment ActivitySecond Quarter of 2012

EffectiveTransaction Maturity Purchase Redemption Interest

Issuer Type of Investment Date Date or Deposit or Withdrawal Rate

AprilFederal Home Loan Bank U.S. Agency 4/9/2012 4/9/2015 5,000,000 0.55%Federal Home Loan Bank U.S. Agency 4/9/2012 4/9/2015 5,000,000 0.55%Federal Home Loan Mtg. Co. U.S. Agency 4/11/2012 4,999,063

Washington State Treasurer * Local Govt. Investment Pool 13,664,191 10,000,000 0.14%Clark County Treasurer * Local Govt. Investment Pool 14,409 67,674 0.29%

May

Federal Home Loan Mtg. Co. U.S. Agency 5/3/2012 5,000,000 1.00%Federal Home Loan Mtg. Co. U.S. Agency 5/4/2012 5,000,000 0.70%Federal Nat'l Mtg Assoc. U.S. Agency 5/25/2012 5,000,000 1.25%Federal Nat'l Mtg Assoc. U.S. Agency 5/24/2012 8/24/2015 5,000,000 0.70%Federal Nat'l Mtg Assoc. U.S. Agency 5/8/2012 2/8/2016 5,000,000 0.85%


June

Federal Farm Credit Bank U.S. Agency 6/15/2012 5/16/2016 5,040,800 2.03%Federal Nat'l Mtg Assoc. U.S. Agency 6/5/2012 5,000,000 1.00%Federal Nat'l Mtg Assoc. U.S. Agency 6/7/2012 12/7/2015 5,000,000 1.01%


* Investment in the County and State investment pools can change daily, therefore, no purchase dates are shown and the maturity dates are the last date for each reporting period.


City of VancouverInvestment PortfolioThrough Second Quarter 2012

Purchase Maturity Par Market Book Percent Cumulative Interest EffectiveInvestment Issuer Date Date Value Value Value of Portfolio Percent Rate Yield

Clark County LGIP 107,997,411.27 107,997,411.27 107,997,411.27 46.6% 46.6% 0.31 0.31 Washington State LGIP 52,384,253.16 52,384,253.16 52,384,253.16 22.6% 69.2% 0.14 0.14 Federal Home Loan Mortgage Co. 04/08/2009 07/15/2012 37,000.00 36,991.12 36,966.02 0.0% 69.2% 2.36 2.54 Federal Home Loan Mortgage Co. 04/08/2009 09/15/2012 2,988,000.00 2,983,846.68 2,973,430.75 1.3% 70.5% 2.31 2.49 Federal Nat'l Mtg. Assoc. 04/08/2009 11/15/2012 29,000.00 28,922.57 28,737.79 0.0% 70.5% 2.38 2.58 Federal Farm Credit Bank 12/30/2009 12/24/2012 5,000,000.00 5,033,900.00 4,993,967.55 2.2% 72.7% 1.63 1.88 General Electric Capital Corp 02/23/2011 01/08/2013 500,000.00 505,830.00 503,705.15 0.2% 72.9% 2.80 1.35 Federal Nat'l Mtg. Assoc. 10/17/2011 10/17/2014 5,000,000.00 5,000,650.00 5,000,000.00 2.2% 75.1% 0.70 0.70 Federal Nat'l Mtg. Assoc. 11/21/2011 11/21/2014 5,000,000.00 5,007,450.00 5,000,000.00 2.2% 77.2% 0.88 0.88 Vancouver Wash LTGO 06/22/2011 12/01/2014 300,000.00 302,208.00 300,000.00 0.1% 77.3% 1.38 1.40 Clark County WA Public Utility 02/01/2012 01/01/2015 145,000.00 159,695.75 160,017.44 0.1% 77.4% 5.00 0.80 Seattle WA Muni Light & Power 11/15/2011 04/01/2015 155,000.00 174,849.30 172,677.04 0.1% 77.5% 5.25 1.02 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000.00 5,020,250.00 5,000,000.00 2.2% 79.6% 0.69 0.70 Federal Home Loan Bank 04/09/2012 04/09/2015 5,000,000.00 5,020,250.00 5,000,000.00 2.2% 81.8% 0.69 0.70 Federal Nat'l Mtg. Assoc. 07/27/2011 04/27/2015 6,250,000.00 6,254,812.50 6,250,000.00 2.7% 84.5% 1.50 1.50 Federal Nat'l Mtg. Assoc. 10/28/2011 04/29/2015 5,000,000.00 5,010,750.00 5,000,000.00 2.2% 86.7% 1.10 1.10 Federal Nat'l Mtg. Assoc. 05/24/2012 08/24/2015 5,000,000.00 4,996,650.00 5,000,000.00 2.2% 88.8% 0.69 0.70 Vancouver Wash LTGO 06/22/2011 12/01/2015 25,000.00 25,455.00 25,000.00 0.0% 88.8% 2.22 2.25 Federal Nat'l Mtg. Assoc. 06/07/2012 12/07/2015 5,000,000.00 4,998,350.00 5,000,000.00 2.2% 91.0% 1.01 1.25 Clark County WA Public Utiliti 03/08/2012 01/01/2016 330,000.00 372,556.80 372,524.86 0.2% 91.1% 1.21 1.23 Chelan County Public Utility D 11/09/2011 07/01/2016 500,000.00 509,590.00 507,949.28 0.2% 91.4% 1.85 1.46 Federal Nat'l Mtg. Assoc. 05/08/2012 02/08/2016 5,000,000.00 5,011,800.00 5,000,000.00 2.2% 93.5% 0.84 0.85 Federal Farm Credit Bank 06/15/2012 05/16/2016 5,000,000.00 5,030,700.00 5,040,337.35 2.2% 95.7% 2.00 2.03 Federal Nat'l Mtg. Assoc. 02/28/2012 11/28/2016 5,000,000.00 4,981,250.00 4,976,798.25 2.1% 97.8% 1.09 1.11 Federal Nat'l Mtg. Assoc. 03/13/2012 03/13/2017 5,000,000.00 5,026,050.00 5,000,000.00 2.2% 100.0% 1.37 1.39

Total 231,640,664 231,874,472 231,723,776 0.48% 0.49%

Average Maturity 10.9 Months


2Q Narrative with LT edits (2)Section PageAttachmentsI. Executive SummaryII. Economic ReportIII. Financial ResultsGeneral FundEXPENDITURESCash Balance

IV. Outstanding DebtV. Investments

Market ConditionsInvestment Performance

Quarterly Report Attachment A B - GLW 2012 final - SnapshotExpense ReportRevenue Report

12-Outstanding DebtGO BondsRevenue Bonds

12-InvestmentsInvestments pg 1Investments pg 2Investments pg 3

second quarter financial report - 2012 · • the local portland-vancouver metro inflation rate is...

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