PRESENTER: Presenter
Carren Ridge - Accounting and Treasury Manager
Body
SUBJECT: Title
Approval of the City of New Braunfels FY 2026 Third Quarter Investment Report.
Header
DEPARTMENT: Finance
Body
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 2026 Third Quarter Investment Report, fulfilling these statutory and policy requirements. As of June 30, 2026, the City’s investment portfolio held a market value of $231,691,563 comprised of various investment instruments shown below, including cash, reflecting a decrease of $15,633,446 from the previous quarter. This decrease is mainly attributed to cash needs for insurance, debt service, and capital expenditures.
During the third quarter of FY 2026, the weighted average maturity (WAM) of the City’s investment portfolio decreased by five days compared to the second quarter. This slight shortening of the portfolio is the direct result of a long‑term investment maturing, with its proceeds reinvested into an overnight investment pool. Because the majority of the City’s portfolio is held in these daily‑liquid pools, the maturity of a longer‑term security naturally reduces the overall average maturity.
The weighted average yield remained strong but declined by 0.08 percentage points from the second quarter. This modest decrease is primarily due to the same long‑term maturity and a general softening of market interest rates within the short‑term investment pools during the quarter. Although the yield moved slightly lower, the City’s investment strategy continues to prioritize safety and liquidity while optimizing earnings within all statutory and policy requirements.
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.