Presenter/Contact
Presenter
Martie Simpson, Finance Director
Contact Info
(830) 221-4385 - msimpson@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of the City of New Braunfels FY2017-18 first 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 first quarter investment report to meet these statutory requirements. As of December 31, 2017, the City had $89,351,465 (market value) invested in different investment instruments, including cash, as shown below. The portfolio decreased by $2,470,994 due to budgeted expenditures, including capital expenditures relating to the 2013 Bond Program.
For this quarter, the weighted average yield on the City’s investments is .95 percent, which is an increase of .07 percent in comparison to the fourth quarter of FY 2016-17 earnings of .88 percent. This increase is due to a higher yield being earned on the T-Note security, and TexPool investments.
The weighted average maturity of the City’s portfolio increased in comparison to the fourth quarter of FY 2016-17. This increase is due to the investment in a 12-month T-Note that will mature in November 2018. 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 investment report.