La Porte finance staff reports 3.82% average yield and about $5M in interest through March

Shelby, a city finance staff member, summarized the second-quarter FY2026 investment report for the Fiscal Affairs Committee, saying the City of La Porte’s portfolio averaged a 3.82% yield through March and outperformed the six‑month Treasury benchmark of 3.64%. “Our total interest earnings are just over $5,000,000,” Shelby said.

Shelby told the committee the portfolio totals nearly $298,000,000, with the majority held in pooled investments and about 4% in agency securities (roughly $10,000,000). She said the city purchased four securities in recent months, each yielding about 4%, as staff worked to “keep that yield up and rebuild our ladder.” Shelby added that recent movement in the yield curve has been modest, with slightly higher two‑year rates over the past three months.

Committee members pressed for operational impacts. The Chair asked whether the roughly $1 per gallon increase in gasoline would affect the city fleet or first‑responder budgets; Shelby said she had not yet reviewed the relevant budget lines in detail but expects the submitted budget to reflect higher fuel costs. “I need to look at those numbers a little more closely,” Shelby said.

Shelby also summarized market context: the Federal Open Market Committee did not change rates at its March meeting and was widely expected to hold the federal funds range near 3.5%–3.75% in the near term, supporting the city’s current reinvestment approach. No formal action or vote was taken on investment policy during the meeting; the report was received for committee review.