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Round Rock council hears quarterly financial report showing $557.8 million invested, mixed revenue signals
Summary
City staff told the council the city’s investment portfolio held $557.8 million as of Dec. 31, 2024, while sales-tax receipts were down year over year after a large one-time adjustment; water, wastewater and stormwater revenues rose after rate changes implemented in November.
Round Rock city staff presented the quarterly financial and investment report for the period ending Dec. 31, 2024, at the Feb. 12 City Council meeting, reporting a portfolio balance of $557,800,000 and continued high interest earnings amid mixed revenue signals.
The report, delivered by Kevin (staff member), summarized economic indicators and city revenues. Kevin said unemployment for December was 2.9% and noted consumer-price metrics: December CPI was 2.9% and the Fed’s preferred PCE metric was 2.6% for December. He told the council the city’s quarter-average portfolio yield was 4.44%, above the one‑year U.S. Treasury benchmark of 4.16%.
City revenues showed divergent trends. Kevin reported citywide sales-tax receipts, net of incentives, were down 9.9% for the first fiscal quarter; after adjusting for a large amendment related to Dell (a $3.8 million adjustment), the underlying general‑fund sales‑tax trend rose 2.8%. He said property‑tax revenues increased, driven by a higher tax rate and new property on the roll. Occupancy and venue taxes were down 11.6% for the quarter, a timing issue staff said they will continue to monitor.
Kevin highlighted that water, wastewater and stormwater revenues were above prior-year levels and ‘‘trending right on target’’ for the fiscal year. When Council member Fleming asked whether the water‑revenue increase reflected rate changes, Kevin answered that the utility rate changes went into effect in November and that both the base and tier adjustments are contributing to higher revenues and to conservation goals.
On investments, Kevin said the city uses a laddered approach prioritizing safety, liquidity and yield; the portfolio’s weighted average maturity was 238 days at quarter end. He noted the Fed’s January statement that inflation is moving toward the 2% goal and said markets and cash‑flow projections will be monitored ahead of the March Federal Open Market Committee meeting.
The council adopted the resolution accepting the quarterly financial and investment report. Motion to adopt was made by Council member Ortega and seconded by Mayor Pro Tem Stevens; the vote was unanimous.
Staff and council members said they will continue watching sales‑tax timing, occupancy trends and inflation indicators through the fiscal year.
