Idle city cash earned $57.9 million in interest last year as the portfolio shrank to $1.38 billion

Frisco earned $57.9 million in interest on its idle cash in the budget year that ended Sept. 30, according to the annual investment report on the City Council's consent agenda Tuesday, Oct. 20. Over the same year, the portfolio's book value fell by about $220 million.

The city's book value stood at about $1.38 billion on Sept. 30, down from about $1.60 billion a year earlier, according to the report prepared by the city's investment adviser, Hilltop Securities Asset Management.

A memo from Debt and Treasury Officer Brett Peterson says the portfolio's yield to maturity ended the year at 3.782%, a little under its benchmark, the average six-month Treasury bill yield of 3.804%. A year earlier the yield was 4.184%.

Where the money is

The city keeps its money short. On Sept. 30, about 62% was in local government investment pools, with TexPool and TexSTAR each holding a little over 30% of the portfolio. U.S. Treasuries made up about 29% and federal agency securities about 9%. Nothing in the portfolio matured more than a year out, and the average time to maturity was 67 days.

On paper the holdings were worth about $1.15 million less than their book value on Sept. 30. A year earlier they showed a small unrealized gain. During the year the city bought about $527 million in securities and had about $521 million mature, the report shows.

The city's Community Development Corporation and Economic Development Corporation have their own reports:

• Community Development Corporation: about $260.8 million in book value, down from $314.7 million, with net income of $10.8 million.
• Economic Development Corporation: about $90 million, down from $96.7 million, with net income of $3.4 million.

Frisco's investment policy requires the annual report to be signed by all of the city's investment officers, the memo says. A separate item covers the July-through-September quarter.

A fifth elevator at Riders Field

Also on the consent agenda is a $236,021 change order with Urban Elevator Service, an Otis affiliate, to replace a fifth elevator at Riders Field, home of the Frisco RoughRiders.

All six elevators at the stadium are original, a staff memo says. An elevator consultant hired in late 2024 recommended replacing every one, and two were already out of service. The council approved $783,768 in January to replace four of them.

Because the contractor had scheduling room, staff now wants to add Elevator 1, which serves the team's administration area. The change brings the contract to $1,019,807, paid from a capital account set up under an amendment to the city's agreement with the RoughRiders.

Consent items are usually approved together in one vote unless a council majority pulls one for discussion. The council meets at 5 p.m. at the George A. Purefoy Municipal Center, 6101 Frisco Square Blvd., with the regular session expected to begin around 6:30 p.m.

Sources

agenda.friscotexas.gov

agenda.friscotexas.gov

agenda.friscotexas.gov

agenda.friscotexas.gov

agenda.friscotexas.gov

agenda.friscotexas.gov