City hears upbeat investment report; portfolio nearly $75 million and largely in Treasuries

Ryan Catcher, the newly introduced presenter for the city's investment manager, told the Woodburn City Council the portfolio is "performing very well, lockstep with benchmark expectations." He said the portfolio complies with Oregon statute and the City of Woodburn's investment policy.

Catcher told the council the accounts manage just short of $75,000,000 in city funds: about $74,000,000 in securities plus roughly $800,000 in accrued interest. He said the portfolio's effective duration is 1.34 years, which "matches exactly the benchmark," and noted a heavy allocation to U.S. Treasuries (about 92% of holdings).

Finance Director Tony Turley added context on the city's broader cash position, noting the city also holds nearly $60,000,000 in the state short-term LGIP and that combined investments approach $130,000,000 when LGIP funds are counted. Turley said the larger total helps explain the city's overall liquidity picture but that some balances (SDC and enterprise funds) are restricted for capital projects.

The presenter summarized recent market drivers, saying weaker labor participation and easing inflation point toward potential Federal Reserve rate cuts in coming quarters; the market is pricing modest rate reductions that could move long-term policy rates toward roughly 3%. Catcher highlighted sectors where the manager sees selective opportunities, including corporate bonds within the policy limits, but emphasized most of Woodburn's holdings remain in short-duration treasuries to meet policy constraints.

Catcher concluded by reporting total earnings of "just short of $6,500,000," primarily from interest income, and said the portfolio has outperformed its benchmark by about five basis points since inception nearly three years ago. Councilors asked no substantive follow-up; the presentation closed with staff confirmation that all holdings were reviewed and found to be policy-compliant.