PRESENTER: Presenter
Carren Ridge - Accounting and Treasury Manager
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SUBJECT: Title
Approval of the City of New Braunfels FY 2025 Third 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 Third Quarter Investment Report, fulfilling these statutory and policy requirements. As of June 30, 2025, the City’s investment portfolio held a market value of $229,979,618 comprised of various investment instruments shown below, including cash, reflecting a decrease of $25,650,965 from the previous quarter. This decrease is attributed to cash needs for capital and debt service expenditures.
The weighted average maturity of the City’s investment portfolio decreased by 2 days during the FY 2025 third quarter, compared to the second quarter. The decrease is mainly attributed to an increase in the percentage of overnight investments.
The weighted average yield remains strong but experienced a decline of 0.04 percentage points in comparison to the second quarter of FY 2025. This slight decline is largely due to a downward shift in market interest rates during the quarter. 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.