PRESENTER: Presenter
Carren Ridge - Accounting and Treasury Manager
Body
SUBJECT: Title
Approval of the City of New Braunfels FY 2025 Second 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 2025 Second Quarter Investment Report, fulfilling these statutory and policy requirements. As of March 31, 2025, the City’s investment portfolio held a market value of $255,630,583 comprised of various investment instruments shown below, including cash. This reflects an increase of $19,319,951 compared to the first quarter of FY 2025. This increase is largely attributed to property tax collections. The majority of property taxes for the fiscal year are collected between the months of January and March.
The weighted average maturity of the City’s investment portfolio had a minimal decrease of 1 day during the FY 2025 second quarter, compared to the first quarter of FY 2025. The decrease is mainly attributed to an increase in the percentage of overnight investments.
The weighted average yield experienced a decline of 0.236 percentage points in comparison to the first quarter of FY 2025. This slight decline is largely attributable 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.