PRESENTER: Presenter
Carren Ridge - Accounting and Treasury Manager
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SUBJECT: Title
Approval of the City of New Braunfels FY 2025 First Quarter Investment Report.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
In compliance with State of Texas statutes, municipalities are required to present quarterly investment reports to their governing bodies. Additionally, the City Council's annually adopted Investment Policy mandates quarterly reporting to the Council.
Submitted for the Council’s review and consideration is the FY 2025 First Quarter Investment Report, fulfilling these statutory and policy requirements. As of December 31, 2024, the City’s investment portfolio held a market value of $236,310,632, comprised of various investment instruments shown below, including cash. This reflects a decrease of $17,812,831 compared to the fourth quarter of FY 2024. This decrease is primarily attributed to disbursements for capital projects.
The weighted average maturity of the City’s investment portfolio increased by 14 days during the FY 2025 first quarter, compared to the fourth quarter of FY 2024. This extension in maturity is due to the purchase of multiple investment instruments with maturities ranging from 3 months to 2 years, reflecting a strategic diversification of the portfolio to balance liquidity and return.
The weighted average yield experienced a decline of 0.16 percentage points in comparison to the fourth quarter of FY 2024. This reduction is largely attributable to a downward shift in prevailing market interest rates during the quarter. Market conditions during this period were influenced by policy adjustments and broader economic factors, leading to lower yields across short- and medium-term investment instruments. Despite this decline, the portfolio continues to adhere to the City’s objectives of safety, liquidity, and yield optimization within statutory and policy guidelines.
STRATEGIC PLAN REFERENCE:
Strategic Priority: Organizational Excellence
Objective: Considering statutory and market-based factors, continue to diversify revenue streams to support long-term fiscal sustainability of the organization.
FISCAL IMPACT:
N/A
Recommendation
RECOMMENDATION:
Staff recommends approval of the attached investment report.