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City investment adviser reports higher yields, $1 million net income for 2025
Summary
An outside presenter told the City of Cocoa council that a safety-first investment strategy and heavy weighting toward U.S. Treasuries produced a book yield of 3.79% and net income "just under $1,000,000" in fiscal 2025, up from $550,000 the prior year.
The city's investment adviser presented a year-end review to the City of Cocoa council, saying the portfolio's primary objective is "safety first" and that a disciplined, cash-flow-driven approach produced stronger income despite falling market rates.
"The book yield of this portfolio, as of the fiscal year end was 3.79%," the presenter, Mr. Gray, said. He told the council the city manages separate operating, reserves and liquidity portfolios; overall about 63% of holdings are kept in local government investment pools for daily liquidity while longer-dated securities (one to five years) make up most of the remainder.
Gray said the city reinvested about a third of some portfolios during the year and rebalances roughly every four to six weeks to preserve an average maturity near two-and-a-half years. "The net income of this portfolio for 2025 was just under $1,000,000," he said, adding that the prior year's income was $550,000.
The presentation emphasized use of U.S. Treasuries and high-grade municipal bonds and corporate notes only when appropriate. Gray said the portfolios are positioned to preserve yield if market rates continue to decline: "These portfolios are holding on to some higher yielding securities and protecting that income, at least for the near term."
Mayor Blake and other council members thanked Gray and staff for the regular reviews; Gray offered to provide additional data points and quarterly updates on request. The report did not propose any policy changes and no formal action was required.
What happens next: Council members may request follow-up data during routine quarterly investment reviews; staff indicated they will make supporting documents available on request.
