Presenter/Contact
Presenter
Sandy Paulos, Assistant Chief Financial Officer
Contact Info
(830) 221-4387 - spaulos@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of the City of New Braunfels FY 2021 Second Quarter Investment Report.
Body
BACKGROUND / RATIONALE:
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 2021 Second Quarter Investment Report to meet these statutory requirements. As of March 31, 2021, the City had $210,071,226 (market value) invested in different investment instruments including cash, as shown below. The portfolio increased by $14,666,358 in the second fiscal quarter. This was due to property tax collections during the quarter. The majority of property taxes are collected from December - March.
For the second quarter, the weighted average yield of the City’s investments was 0.06 percent, a decrease of 0.06 percent when compared to the FY 2021 first quarter yield of 0.12 percent. The yields of the Local Government Investment Pools (LGIP’s) in which the City participates continued to decrease and averaged a yield of 0.05 percent during the quarter. Since the majority of the City’s funds are in LGIP’s, these lower yields resulted in a decrease in the City’s portfolio yield.
The weighted average maturity of the City’s portfolio increased in comparison to the first quarter of FY 2021. This is due to purchase of several 6-month and 12-month CD’s during the quarter.
We have made progress on the goal of diversifying the City’s portfolio in this challenging rate environment by taking steps such as moving funds into an additional LGIP and taking advantage of other secure investment options, such as CD’s. We continue to research other investment options while being mindful of bond project cashflow needs and security of principal.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
City Plan/ Council Priority: |
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 investment report.