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Cedar Park reports stronger-than-expected first-quarter revenues, investment yields
Summary
City staff told the council Wednesday that general fund revenues and sales tax collections exceeded Q1 projections while investment yields rose after recent debt proceeds increased the liquidity portfolio.
Cedar Park — City finance staff reported Wednesday that Cedar Park’s general fund revenues through the first quarter (actuals through Dec. 31, 2024) exceeded budget projections while the city’s investment portfolio grew following recent bond proceeds.
Finance Director Erica Solis told the City Council that general fund revenues totaled $26,000,000 for the first quarter, about 35% of the adopted $78,100,000 budget and roughly 3% above projections for Q1. Ad valorem collections totaled $17,400,000, about 4% higher than projected, and 1¢ general fund sales tax collections were $6,200,000, 4.6% above budget year to date.
Solis said general fund expenditures for the quarter totaled $20,100,000, about 26% of the adopted budget. For the water and wastewater utility fund, she reported $7,700,000 in revenues and $8,300,000 in expenses for Q1 and described utility revenues as seasonal and weather dependent.
On investments, Solis said the combined portfolio balance at quarter-end was about $301,000,000, an increase of roughly $60,000,000 from Sept. 30 due to bond proceeds received in November. The city maintains two sub-portfolios: a liquidity portfolio with a weighted average maturity (WAM) target of 270 days and a core portfolio with a maximum WAM around 1.5 years. Solis reported the liquidity portfolio WAM at 79 days with a yield of 4.41% (slightly above benchmark), and the core portfolio WAM just under one year with a 4.13% yield (an increase from about 3.5% last year). Interest earnings for the quarter were $1,600,000.
Council members asked staff clarifying questions about portfolio composition and sales tax performance. Council members praised the pickup in sales tax collections and the stronger yields, and no formal action was required.
Solis said the investment portfolio remained in compliance with the city's investment policy and offered to answer any follow-up questions from council.
