Quarterly Financial Report

The Public Funds Investment Act limits the City to certain types of investments it can purchase with public funds. The City’s investment portfolio is relatively liquid with 65% of its investments in local government investment pools which provide the City with same-day liquidity and competitive rates in comparison to other types of investments. The remainder of the portfolio consists of commercial paper (33%) and municipal bonds (2%).

During the second quarter of FY2022, the City invested $48.2 million into investment pools and commercial paper (including reinvestment of $25K in accrued interest) and made withdrawals of $20.2 million primarily for debt payments and construction payments. The average interest yield of the City’s investment pools was 0.610% at the end of the second quarter. The City will continue to actively monitor the market and its liquidity needs to determine the proper course of action regarding investments.

To address the City’s post-employment health care benefit liability, an OPEB Trust was established in Fiscal Year 2015. By creating an OPEB Trust Fund, the City canfinance future OPEB cost/liabilities in large part from the investment earnings provided by the OPEB Trust Fund; i.e., the investment earnings are expected to generate significant revenue to reduce the City’s OPEB obligations.