Presenter/Contact
Presenter
Sandy Paulos, Assistant Director of Finance
Contact Info
(830) 221-4387 - Spaulos@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of the City of New Braunfels FY 2017-18 second quarter investment report.
Body
BACKGROUND / RATIONALE:
State of Texas statutes require quarterly investment reports to be presented to the governing body of a municipality. In addition, the Investment Policy adopted annually by the City Council requires quarterly reporting to the City Council. Attached for Council consideration is the FY 2017-18 second quarter investment report to meet these statutory requirements. As of March 31, 2018, the City had $98,040,869 (market value) invested in different investment instruments, including cash, as shown below. The portfolio increased $8,689,404 due to property tax collections, a large portion of which was invested in TexPool securities.
For this quarter, the weighted average yield on the City’s investments is 1.31 percent, which is an increase of .36 percent in comparison to the first quarter of FY 2017-18 earnings of .95 percent. This increase is due to a higher yield being earned on the T-Note security as well as an increase in earnings on TexPool investments.
The weighted average maturity of the City’s portfolio decreased in comparison to the first quarter of FY 2017-18. This decrease is due to the maturity of two federal agency securities in February and March. Every effort continues to be made to maintain the City’s liquidity for payment of expenditures while maximizing interest earnings in this continued low, but rising interest rate market.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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Yes |
Strategic Priorities: 8 - Maintain fiscal stability of City operations |
FISCAL IMPACT:
N/A
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of the attached FY 2017-18 second quarter investment report.