Council receives quarterly financial and investment reports and adopts investment policy

Town finance staff presented Sunnyvale’s quarterly financial report for the period ending Dec. 31, 2024, and a separate investment‑portfolio report before the council approved the town’s annual investment policy as required under Texas law.

Finance presenter Mikaela reviewed preliminary year‑to‑date numbers: general‑fund revenue was about $5.7 million through Dec. 31 and the town had collected roughly 36% of budgeted revenue despite being 25% through the fiscal year, a timing pattern driven largely by property‑tax receipts received in late December/early January. Sales tax receipts were slightly above budgeted expectations and the general fund’s year‑to‑date expenditures were approximately 19.7% of the annual budget, excluding a $500,000 contingency line item. Mikaela said the town expects to finish near or slightly below budget and that the debt‑service payments due Feb. 15 would be approximately $3 million.

Rachel, the town’s investment officer, briefed the council on the investment portfolio. She said the town held about $38.9 million in investments at quarter end, including $7 million in tax notes received in October. The portfolio was roughly 68% in liquid funds (money markets and pools) and 32% in fixed‑income securities (CDs, agencies and municipals). Rachel reported a portfolio yield‑to‑maturity at market of 4.69%, outperforming the three‑month U.S. Treasury benchmark (4.39% at 12/31/24) by about 30 basis points.

As required by the Public Funds Investment Act, staff recommended the council adopt an annual investment‑policy resolution that reiterates safety, liquidity and yield as priority objectives and lists the town’s authorized investment officers and training requirements. The council voted unanimously on the motion as recorded: the resolution (identified on the agenda as item K‑1) was approved by a 6‑0 vote (one councilor absent).

Council members asked about permitted investments and noted the current maximum maturity in policy is three years; staff said they may return later to propose longer maturities to lock in yields if market conditions warrant. No changes to authorized investment types were proposed at the meeting.

The council took no other fiscal actions at the meeting; the investment‑policy ordinance was the action item the council approved during this portion of the agenda.