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 2020 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 2020 Second Quarter Investment Report to meet these statutory requirements. This report was presented to the Finance and Audit Committee at its meeting on July 22. As of March 31, 2020, the City had $151,560,911 (market value) invested in different investment instruments including cash, as shown below. The portfolio increased by $14,271,914 in the second fiscal quarter due to the receipt of property tax collections.
For the second quarter, the weighted average yield on the City’s investments was 1.07 percent, a decrease of .57 percent when compared to the FY 2020 first quarter yield of 1.64 percent. In response to the COVID-19 pandemic, the Federal Reserve lowered the Fed Funds rate twice in March by a total of 1.50 basis points, which resulted in a decrease in the Texpool rate. Texpool is where the majority of the City’s portfolio is held.
The weighted average maturity of the City’s portfolio decreased in comparison to the first quarter of FY 2020, due to the approaching maturity dates of the CD and securities in the portfolio.
Diversification of the City’s portfolio remains an objective as we continue to look for favorable investment opportunities, with higher yields, while being mindful of the security of the City’s funds and the liquidity needs of the bond projects.
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.