INVESTMENT INCOME

Distribution: All funds on a pro rata basis to cash and investment balances held

Source: Interest and investment income from investments made by the Town

The Town uses Chandler Asset Management for its long-term investment recommendations. Securities authorized by the Town Council’s approved investment policy do not include derivative products.

Collection: Investment maturities and earnings are set up for automatic wire transfers or deposit to the Town’s Local Government Investment Pool.

Trend:

% Change

Year Revenue (YoY)

20181,125,080

20192,173,944 93.2%

20201,111,715 -48.9%

2021-5,667

2022 Projected 968,896

2023 Adopted 961,734-0.7%

• 2021 annual Investment Income revenue is a -$5,667 due to the accounting adjustment for mark-to-market.

• As of September 2022, the Federal Open Market Committee’s (FOMC) target range was 3.003.25%, which is a 3% increase over the prior year.

• Rate increases in 2022 have resulted in a projected full recovery in investment income by the end of 2022. Revenue is likely to exceed the projections based on the number of increases.

• The portfolio book value as of 9/30/2022 was $195.8 million. Of this, $138.0 million was invested in two Local Government Investment Pools: $65.6 million in COLOTRUST with an average monthly yield of 2.62% and $72.4 million in CSAFE with a monthly average of 2.64%.

Investment in US Agency securities, US Treasuries and money market mutual funds was $57.9 million with an average YTM of 4.18%.

• Interest revenues will vary based on rates and portfolio volume.