Presenter/Contact
Presenter
Sandy Paulos, Assistant Director of Finance
Contact Info
(830) 221-4387 - spaulos@nbtexas.org
Subject Header
SUBJECT:
Title
Discuss and consider approval of the City of New Braunfels FY 2017-18 Fourth 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 2017-18 Fourth Quarter Investment Report to meet these statutory requirements. As of September 30, 2018, the City had $106,894,469 (market value) invested in different investment instruments including cash, as shown below. The portfolio increased by $17,141,256 in the fourth fiscal quarter. This was due to the receipt in September of $26,000,000 in GO bond and tax note proceeds.
Amount Invested
(Dollars in millions)
Investment Type:
US Treasury Note $5
Money Market/Cash $11
Pools $91
Weighted Average Maturity of Portfolio 3 days
Weighted Average Yield for Portfolio 1.76%
Earned Income QTR $374,729
Earned Income YTD $1,201,603
For the fourth quarter, the weighted average yield on the City’s investments was 1.76 percent, an increase of .12 percent when compared to the third quarter of FY 2017-18 earnings of 1.64 percent. This improvement was due to an increase in average interest rates on TexPool investments.
The weighted average maturity of the City’s portfolio decreased in comparison to the third quarter of FY 2017-18 due to the decrease in the remaining days to maturity of a Treasury Note that matures 11/15/18. Every effort continues to be made to maintain the City’s liquidity for payment of expenditures while maximizing interest earnings in this rising interest rate market.
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.