Cedar Park finance staff presented the fiscal year 2025 third-quarter financial and investment report, reporting general fund revenues ahead of projections, strong sales tax performance, and $9.5 million in interest earnings through June 30.

Erica Solis, finance department, told the council the general fund had collected $64.1 million through June 30, about 6% more than projections. Ad valorem (property) tax collections were $30.7 million through the quarter, marginally below projections, while sales tax collections of $18.8 million were 8.6% above year-to-date budget and 5% higher than the same period in FY 2024.

Solis said general fund expenditures were trending slightly below projections ($57.3 million through the quarter) and that the water and wastewater utility fund showed revenues of $31.7 million and expenses of $31.4 million through the period. She highlighted that $9.5 million in interest earnings had been earned in the portfolio through the end of the third quarter, a 12% increase from the prior year, partly attributable to unspent 2024 GO bond proceeds.

Solis described how the city maintains two sub-portfolios for liquidity and core investments. The liquidity portfolio weighted average maturity (WAM) was 184 days and yield 4.35%; the core portfolio WAM was 1.14 years with yield 4.26%, both above benchmarks cited in the presentation. The combined portfolio balance at quarter end was approximately $315 million, with about 27% in highly liquid cash or local government investment pools and the remainder in commercial paper, U.S. agencies and obligations.

Council members responded positively to the report and asked questions about interest income and portfolio composition; no ordinance or budget change was adopted as part of the presentation. Solis noted anticipated debt service payments in Q4 and that the city’s investment portfolio remained in compliance with policy.