Town finance adviser reports higher yields and $207 million in investable assets

An investment adviser briefed the Paradise Town Council on the town’s investment portfolio, saying higher longer‑term yields offer opportunities to lock in income that will support municipal operations and projects.

"A total of just over $207,000,000," the adviser told council when presenting the year‑end portfolio summary. The presentation described assets held by the town’s custodian (US Bank) and short‑term cash held in local government investment pools and deposits at Tri Counties Bank. The adviser explained that the town’s investment policy, consistent with California Government Code limits, limits individual securities to five‑year maturities and that the portfolio is laddered from overnight holdings to five years.

Key points from the presentation included: - Portfolio size and mix: The adviser reported total securities and cash balances of about $207 million at yearend, with roughly 37 percent in the 0–1 year bucket (overnight and short‑term) and a portion in 2–5 year securities that were purchased at yields above 4 percent. - Yield and income: The securities portion of the portfolio realized about $2 million in the 2022–23 fiscal year. Through the current fiscal year the adviser said he expected more than $3.5 million in income from securities alone; together with other cash income that figure could exceed $4 million, or "maybe pushing 4.5 million," he said. - Strategy: With short‑term Federal Reserve rate reductions slowing and some longer yields climbing, the adviser recommended continuing to stagger maturities so the town can lock in higher rates on the longer end of the curve while retaining sufficient liquidity for operations. He characterized the current market as providing "really good opportunities" to buy longer‑term bonds and stabilize income.

Council members asked about monthly maturities and cash flow timing. The adviser answered that maturities are staggered and that he coordinates regularly with the town finance director, who monitors cash needs and directs whether to reinvest maturities or keep funds in cash.

The presentation noted compliance with California Government Code section 53601 and the town’s own investment policy, and staff said detailed monthly investment reports reconcile to the penny with the custodian account.

Ending — oversight and documents The adviser said he distributes a detailed monthly report with holdings, income and reconciliations; council members thanked the adviser for the update and asked to continue receiving the monthly reports and briefings as markets change.