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<br />Since the City budgets investment income as part of the budget process, it is helpful to understand <br />the coupons (interest rate) for the cash and investments. <br /> <br /> As of September 30, 2021 As of September 30, 2020 <br />Coupon Amount Percentage Amount Percentage <br />To 1.00% $12,629,133 74.90% $4,950,644 33.06% <br />1.00% to 1.49% 0 0.00% 245,000 1.64% <br />1.50% to 1.99% 2,695,000 16.00% 2,940,800 19.64% <br />2.00% to 2.49% 1,115,000 6.60% 3,178,588 21.23% <br />2.50% to 2.99% 420,000 2.50% 910,000 6.08% <br />3.00% to 3.49% 0 0.00% 2,747,802 18.35% <br /> $16,859,133 100.00% $14,972,834 100.00% <br /> <br />Interest rates continue to be low. Due to the current interest rate environment, investment earnings <br />for 2021 are lower than 2020. <br /> <br />As of September 30th, 2021 2020 <br />Investment Earnings $107,965 $208,498 <br /> <br />As in prior years, a mark to market adjustment is required to be recorded at year-end in accordance <br />with GASB (Government Accounting Standards Board) and GAAP (Generally Accepted <br />Accounting Procedures). A mark to market adjustment refers to the amount that the City would <br />receive if the entire investment portfolio would have been liquidated in one day. This mark to <br />market adjustment is netted against investment earnings on the financial statements. Since the City <br />held investment with higher coupons in 2020, there was an increase in the mark to market <br />adjustment in 2020. Now that those investments are starting to mature, our mark to market <br />adjustment is decreasing for 2021. The mark to market adjustment on the portfolio is as follows: <br /> <br /> As of 09/30/2021 12/31/2020 <br />Mark to Market Adjustment $(102,743) $121,947 <br /> <br />I am available to answer any questions regarding the City’s finances and this report. <br /> <br /> <br />