Treasury Division

About the Division

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 is $4.5 billion as of June 30, 2019.

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.

The Treasury Division is responsible for managing the City’s investment portfolio in accordance with state law and the City’s investment policy. Fitch Ratings as awarded the City’s general investment portfolio its highest rating, AAA. The Treasury Division is also responsible for overseeing a debt program of approximately $14 billion. The City has multiple general obligation commercial paper programs with total authorization of $725 million. The current issuance capacity of the commercial paper program is $725 million which is supported by credit facilities or line credit.

Additionally, the City has an appropriation facility supported by a forward bond purchase agreement in the amount of $200 million. The City has seven auction-rate security issues, six series of variable rate demand obligation bonds, two SFIMA indexed notes, and three interest rate swaps with a total notional amount of $902 million and credit agreements totaling $2.1 billion. The City’s general obligation debt is rated Aa3 by Moody’s; AA- by Standard and Poor’s; and AA by Fitch Ratings.