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Finance director reports roughly $85 million in invested balances; yield fell in quarter ending Dec. 31, 2024
Summary
Finance Director Robert Rodriguez presented the quarterly investment report showing higher portfolio balances compared with September 30, 2024, an average quarterly yield near 4.47 percent and a portfolio allocation weighted toward local government investment pools.
Finance Director Robert Rodriguez briefed the commission on the investment portfolio for the quarter ended Dec. 31, 2024, reporting a year-end portfolio balance increase and outlining yield and allocation details.
Key figures and points - Portfolio balances: Rodriguez said the city’s book value as of Dec. 31, 2024 was about $85 million, up from roughly $74 million as of Sept. 30, 2024. - Yield: The reported yield to maturity (three-month average) for the quarter was approximately 4.468 percent, down from 5.134 percent for the prior year-ended period cited for comparison. Rodriguez and commissioners discussed short-term treasury market movements and the impact on yields. - Income and amortization: The presentation described interest earnings and a net amortization/accretion figure; staff reported net investment income for the period in staff materials (figures presented verbally were summarized during the meeting). - Asset allocation: The portfolio allocation shown in the packet included about 5.65% in bank deposits, approximately 70.92% in the local government investment pools (TexPool or similar LGIP) and roughly 23.4% in U.S. Treasury securities. Rodriguez described the bank deposits as collateralized and noted treasuries were laddered and held to short maturities in keeping with the city’s conservative posture. - Sweep and cash rates: Rodriguez estimated the sweep account of the city was earning roughly in the low-to-mid 4 percent range at the time and discussed market movement tied to Federal Reserve decisions.
Why it matters: The city’s investment allocation and the yield environment affect available interest income and the city’s near-term budget outlook. Commissioners asked clarifying questions about sweep rates, LGIP balances and restrictions relating to maturities.
What’s next: Staff will continue monitoring market conditions and report back as needed; commissioners thanked finance staff for the presentation.
