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Council approves quarterly investment report; staff reports $648,273 interest for quarter
Summary
The Robinson City Council approved the quarterly investment report for the period ended March 31, 2026. Staff reported an average quarterly yield of 3.9%, interest earnings of $648,273 for the quarter and fiscal-year-to-date interest earnings of $1,335,464; a council member asked about bond interest rate and arbitrage exposure.
The Robinson City Council voted to approve the quarterly investment report for the period ended March 31, 2026 after a presentation by city finance staff.
Staff reported an average quarterly yield of 3.9% and said interest earnings for the quarter were $648,273, with fiscal-year-to-date interest earnings of $1,335,464. The presenter said the city’s reported rolling three-month and six-month treasury comparisons were in the 3.6–3.8% range and that the city’s returns slightly exceeded those benchmarks for the quarter.
During questions, a council member asked about the interest rate on the bond issued for street repairs; staff estimated the rate at a little above 4% and offered to provide the precise rate by email. Council members also discussed arbitrage — the requirement to remit a portion of excess interest earnings to the federal government when bond proceeds are invested — and referenced a prior arbitrage payment of about $107,000. Staff noted that if the city earns excess interest on bond proceeds, a portion must be paid to the IRS.
A council member moved to approve the quarterly investment report and another member seconded; the council approved the report by voice vote. No roll-call tally was read into the record during the meeting. The council then approved consent agenda items 8, 9 and 10 by voice vote. The meeting adjourned at 6:40 p.m.
