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Town accepts quarterly investment report; staff discusses interest-rate volatility
Summary
The council received and accepted the quarterly investment report covering the nine months ending March 31, 2026. Staff noted a $10 million transfer from LAIF to a US Bank account managed by Time Value Investments and warned that recent interest-rate moves have lowered market values on paper though securities held to maturity should return to par.
Council received and accepted the town's quarterly investment report for the nine-month period ending March 31, 2026. Town staff reported that the town transferred $10,000,000 from the Local Agency Investment Fund (LAIF) to a US Bank account managed by Time Value Investments (TVI); the fair market value reported on March 31 was $10,080,000. LAIF investment income for the period was reported as $412,606 and the reported return was 3.98% for the period.
Aaron Bonk, vice president and investment advisor with Time Value Investments, explained that recent market moves (he cited uplift in interest rates following the war with Iran) have driven some unrealized market-value declines for the types of fixed-income securities the town holds; he emphasized those losses are generally "on paper" if the town holds securities to maturity, when they will mature at par.
