Committee approves liquidating investments to cover roughly $4 million bond payment due Oct. 1

The Ways and Means Committee on Sept. 4 approved staff's recommendation to liquidate investments to cover part of a principal debt-service payment due Oct. 1.

Why it matters: Finance staff said the city faces an approximately $4,000,000 bond payment Oct. 1 and had about $2,000,000 in cash on hand; staff requested liquidation of investments maturing in 2027 to make the payment while keeping 2026 investments intact.

Michelle, the finance presenter, told the committee: "In your packet, there is a memo outlining, the request for funds to liquidate some investments in order to make the bond payment that's due October 1. We have about a $4,000,000 payment. We had about $2,000,000 in cash. And so I am requesting if we can liquidate some investments from 2027 and keep 2026 whole." Michelle also said the city was awaiting reimbursements that would reduce the need to draw investments: about $1,700,000 from FEMA/CEMA and $1,100,000 from a TDD.

Committee discussion noted the timing of receipts and that staff would try to better align investment maturities with known large payments. A motion was made to approve staff's recommendation to liquidate $2,200,000 of investments to assist with principal debt service payments. The motion was seconded and approved by voice vote; the clerk recorded "ayes" and no opposition was raised.

Ending: The committee approved the liquidation and directed staff to continue aligning investment maturities with future known large payments and to track outstanding reimbursements separately.