Treasury DivisionThe Treasury Division is responsible for managing the City’s $6 billion investment portfolio, $14 billion debt portfolio and entire City’s banking system in accordance with state law and the City’s policy internally. Fitch Ratings as awarded the City’s general investment portfolio its highest rating, AAA. The City has multiple general obligation, combined utility system, and airport system commercial paper programs with total authorization of $2.025 billion. (GO program of 1.025 billion; CUS program of 1.000 billion; Airport of $800.00 million) The current issuance capacity of the general obligation commercial paper program is $550 million which is supported by credit facilities or line credit, while $475 million is appropriated. The City of Houston also has combined utility system commercial paper program of $475 million which is supported by credit facilities or line credit, while $525 million is appropriated for combined utilities and $800 million authorized CP (commercial paper) for Houston Airport System.
The City of Houston invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. Public funds are invested through programs such as General Funds, Special Revenue Funds, General Debt Service Funds, Capital Project Funds, Enterprise Funds, and Trust and Agency Funds. As of June 30, 2024 the City’s investment portfolio's dollar-weighted average maturity was 1.65 years. As of June 30, 2024, the general pool was yielding 3.778% based on the amortized cost of the portfolio. The following describes the investment positions of the City's operating funds as of June 30, 2024. The City’s invest in high grade, fixed income investments in three separate investment pools, each serving a specific purpose as described below.
Investment Reports
The City of Houston invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. Public funds are invested through programs such as General Funds, Special Revenue Funds, General Debt Service Funds, Capital Project Funds, Enterprise Funds, and Trust and Agency Funds. The City’s investment portfolio shall be designed with the objective of attaining the best feasible rate of return, throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements and the funds shall be undertaken in a manner that seeks to ensure the preservation of capital for the overall portfolio.
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