Treasury Investment Board reports $35.98 million portfolio, invests cash into CDs and sweep account

The Treasury Investment Board reported a cost-basis portfolio of about $35,977,000 and described purchases of certificates of deposit and use of an insured cash sweep account during its meeting.

Board members heard that Huntington and Fifth Third accounts together earned about $405,000 in income for the first quarter and that an insured cash sweep account held roughly $10,000,000 and gained about $95,000 in the quarter. "For our the first quarter of 2025, our cost basis portfolio value is just over 35,977,000," the meeting presenter said. The presenter added that "this account gained just over $95,000 in income during the first quarter."

The presenter told the board that roughly $2,100,000 had been held in money market funds at quarter end but that most of that balance had since been invested, and that multiple CDs with 2028 maturities were purchased in April. The presenter also said the board was continuing a multi-year approach, staying within the five-year allowed maturity term and looking at investments maturing through 02/2030 to smooth cash flows. "The rate on that right now is currently 3.75%," the presenter said, and they noted expectations of Federal Reserve rate cuts later in the year could reduce yields.

A staff member added that the insured cash sweep "still provides a level of liquidity that CDs and items like that do not," noting that funds in the sweep are easier to access without penalty if needed. The presenter said the city has earned just over $500,000 in total investment income for the year so far and that amount represents "about 30% of our estimated revenue budget for interest so far this year."

No formal vote was taken on investment strategy; the report was presented for review and questions. The board approved minutes from the Jan. 23, 2025, meeting during roll call with the comment "They're approved." The board scheduled its next meeting for July 24; the meeting adjourned at about 7:09.

Details: portfolio cost basis: $35,977,000 (reported); money market funds at quarter end: $2,100,000 (reported, subsequently invested); insured cash sweep balance: just over $10,000,000 (reported); Huntington and Fifth Third combined income: $405,000 (first quarter, reported); insured sweep income: $95,000 (first quarter, reported); total investment income year-to-date: just over $500,000 (reported); reported yield on insured sweep: 3.75% (current, reported); target maximum investment maturity: five years (policy cited by presenter); recent CD maturities purchased in 2028 (reported).