PRESENTER: Presenter
Carren Ridge - Accounting and Treasury Manager
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SUBJECT: Title
Approval of the City of New Braunfels FY 2023 Third Quarter Investment Report.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
State of Texas statutes require quarterly investment reports 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 2023 Third Quarter Investment Report to meet these statutory requirements. As of June 30, 2023, the City had $242,868,217 (market value) invested in different investment instruments including cash, as shown below. The portfolio decreased by $8,893,602 due to capital and debt service expenditures.
The weighted average maturity of the City’s portfolio decreased by fifteen days in comparison to the second quarter of FY 2023 due to an increase in the percentage of investments held in the government pools and Frost Bank.
For the third quarter, the weighted average yield of the City’s investments was 4.76 percent, an increase of .46 percent from the second quarter FY 2023. This increase is attributed to the increase in rates of local government investment pools (LGIP) and the maturity of some low yield treasuries.
We continue to research safe investment options while being mindful of bond project cashflow needs and security of principal in an uncertain market.
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FISCAL IMPACT:
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RECOMMENDATION:
Staff recommends approval of the attached investment report.