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FPUA finance team highlights GFOA budget award, portfolio returns and CAFR results
Summary
Finance staff presented a Government Finance Officers Association Distinguished Budget Presentation recognition, described investment earnings and proposed modest portfolio shifts to increase insured holdings, and reported the fiscal year 2024 audited financial results and year-end budget amendment.
Fort Pierce Utilities Authority finance staff presented an annual investments update and reported the audited fiscal year 2024 operating results during the board meeting April 1.
Michelle Harris, finance manager, said FPUA received a Government Finance Officers Association (GFOA) Distinguished Budget Presentation award for the fiscal 2025 annual budget, with special recognition for the budget process and the capital program. Harris credited multiple finance staff members for the document’s preparation and presentation.
Chief Financial Officer Barbara (last name given in meeting) then reviewed the authority’s investment portfolio and interest-bearing accounts. Staff described a mix of cash sweep accounts, money-market accounts (Seacoast Bank and PNC Bank), a laddered portfolio managed by LPL Financial, certificates of deposit at local banks, and participation in the Florida State Board of Administration local government investment pool. Staff reported investment income for the fiscal year of roughly $7.3 million and noted that the LPL-managed portfolio (about $5.3 million) returned nearly 5.9% on average during the year.
Staff noted about $4–4.5 million in PNC money-market funds that exceed FDIC insurance limits; the finance team said it will ask the investment committee to consider moving portions of those funds into a managed portfolio of treasuries and AAA-rated corporate bonds to increase insured exposure while maintaining liquidity. Board members asked whether equities are permitted; staff said the investment policy does not preclude equities but the authority has prioritized lower-risk instruments and will discuss allocations with the investment committee.
On the fiscal year 2024 financial results, staff presented the annual comprehensive financial report (audited) and said the audit opinion was unmodified. The authority recognized increased grant revenue for the year (staff cited roughly $24.8 million more grant revenue than the prior year and nearly $29 million in grant revenue recognized this year) tied to capital projects and reimbursement timing. Combined net position increased by $48.9 million for the year; days cash on hand was 133 as of Sept. 30, 2024, well above the master resolution requirement of 45 days.
Why it matters: The investment outlook and portfolio choices affect how the authority preserves cash, covers near-term obligations and maximizes interest while protecting insured holdings. The audited results and budget amendment reflect grant-driven capital activity and strong debt-service coverage metrics.
Staff said they will present the audit and budget amendment to the City of Fort Pierce commission on April 14. The board later considered and recorded formal votes on the budget amendment resolution and audit acceptance (see votes-at-a-glance).
