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Investment advisors tell Palm Coast council: "Safety first, liquidity second" as bond closing nears
Summary
Finance Director Helena Alves and PFM Asset Management presented the annual investment report, saying the city’s portfolio prioritizes safety and liquidity; council members asked how bond proceeds will be handled and Helena said pre‑closing is under way with funding expected April 23.
Palm Coast’s finance team and outside advisors presented the city’s annual investment report to council April 14 and answered questions about how upcoming bond proceeds will be handled.
Danella Mets of PFM Asset Management opened the presentation by summarizing the city’s investment philosophy: “Our focuses for the portfolio are safety first, liquidity, and yields last,” she said, echoing the city’s investment policy. Chief finance officer Helena Alves added that PFM conducts annual reviews against state statute and best‑practice guides.
Advisors described the yield environment and strategy changes prompted by market moves and geopolitical uncertainty. Leslie Weber of PFM said U.S. growth remains positive but is slowing and that the Federal Reserve’s policy path is a central market driver.
Council members pressed for clarity about how proceeds from the city’s municipal bond sale will be invested and matched to project cash flows. Alves said the city is coordinating with bond counsel and an arbitrage‑rebate consultant to ensure compliance and that the bond pre‑closing has been scheduled. “Today's the pre‑closing,” Alves said. “Final closing is next week and we expect the funding to be in by next Thursday, the 23rd.”
Alves and PFM also reviewed the city’s portfolio posture at December 31, 2025: a large allocation to U.S. Treasuries for liquidity, a portion of corporate notes where returns were being captured, and a strong overall credit quality. Mets said the portfolio is outperforming its benchmarks on a one‑year basis.
No formal action was taken; council members asked staff to continue coordinating investment and bond work with the city’s financial and legal advisors and to report back as the bond funding and associated project allocations are finalized.
