City reports nearly $3.84 million in investment earnings since 2018; staff clarifies fund restrictions

At the Ways and Means Committee meeting, the city’s investment advisor reported total interest earnings of about $3,843,000 since July 2018, including $728,000 earned in 2024 and approximately $370,000 year-to-date in 2025 across bond reserve and general custody accounts. The presenter, Brad, explained the $3.84 million figure is the aggregate of earnings across multiple funds since July 2018. Finance staff clarified that large portions of those earnings are tied to project funds, certificates of participation (COPs) and bond reserve accounts and therefore are restricted for specific uses. The finance staff noted that the “general account/custody account” holds operating cash and that interest shown as earned in some totals does not mean those dollars are available for general fund operations. Staff described a mechanism in which interest in the debt service reserve fund accrues to the reserve; periodic sweeps of excess reserve interest can be applied to bond payments, which can indirectly relieve pressure on the general fund. Committee members asked for future reports to show clearer splits between interest credited to the operating (general) account and interest credited to restricted project accounts; staff agreed to adjust future reports if requested. No formal action was taken; the committee accepted the report and staff offered to provide a version of the investment report with clearer general-fund totals on request.