BCRUA-2025-005 - 2/26/2025 RESOLUTION NO. BCRUA-2025-005
WHEREAS, Chapter 2256, Texas Government Code, Section 2256.023 of the Public
Funds Investment Act states that a written report of investments be submitted to the governing
body at least quarterly; and
WHEREAS, a Quarterly Investment Report for the quarter ending December 31, 2024
for the Brushy Creek Regional Utility Authority ("BCRUA") has been submitted to the Board of
Directors; and
WHEREAS, the Board of Directors desires to acknowledge the receipt and acceptance
of the attached BCRUA Quarterly Investment Report, Now Therefore
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BRUSHY
CREEK REGIONAL UTILITY AUTHORITY:
That the BCRUA Quarterly Investment Report, attached hereto as Exhibit "A" and
incorporated herein, is hereby received and accepted.
The Board of Directors hereby finds and declares that written notice of the date, hour,
place and subject of the meeting at which this Resolution was adopted was posted and that such
meeting was open to the public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted upon, all as required by
the Open Meetings Act, Chapter 551, Texas Government Code, as amended.
RESOLVED this 26th day of February, 2025.
NA'COLE THOMPS President
Brushy Creek Regional Utility Authority
ATTEST:
RE ' . FLORES, Se etar
031414611-A.4924-7495.6}17
Quarterly
Investment Report
EXHIBIT "A"
2
OBSERVATIONS AND EXPECTATIONS
•Market participants are expecting only ~1.5 Federal Reserve rate cuts for
2025
•Weekly unemployment claims remain near historically low levels
•Inflation has been trending higher the past few months
•U.S. Treasury rates were mixed for December--shorter rates lower, longer
higher
What the Futures Market is Expecting from the Federal Reserve For 2025
•The Fed Funds futures market
continually prices where it
expects the Funds rate to be
heading.
•At the end of December 2024,
the futures market was
showing only about 1.5 0.25%
Fed cuts in 2025.
2
2.50%
2.75%
3.00%
3.25%
3.50%
3.75%
4.00%
4.25%
4.50%
4.75%
Dec 2025 Expected Fed Funds Rate
SOURCE: BLOOMBERG, CME
3
Labor Market Remains Resilient With Low Unemployment Claims
•Weekly unemployment claims remain near
historically low levels.
•The Federal Reserve and many
economists were expecting rate hikes to
have taken more of a toll on the labor
market.
•That has not been the case.
Core Personal Consumption Expenditures Trending Higher
•Core Personal Consumption Expenditure
YoY is the Fed’s preferred inflation
gauge. Core excludes food and energy
components.
•Core PCE YoY is currently at 2.8%, not
quite at the Fed’s 2% target, but far
below the 5.6% peak in 2022.
•The Fed expects Core PCE YoY will
most likely get much closer to the Fed’s
2% in the first half of 2025.
3
2.60%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Consumer Price Index (CPI) YoY
SOURCE: BLOOMBERG, DEPARTMENT OF LABOR – GRAPH AXIS IS CUT OFF DUE TO COVID DATA EXTREME LEVELS – SHADED AREAS ARE RECESSIONS
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
100
200
300
400
500
600
700
800
Weekly Unemployment Claims - 4 Week Avg
SOURCES: BLOOMBERG, BUREAU OF ECONOMIC ANALYSIS
4
Treasury Rates Were Mixed for the Month of December
SOURCE: BLOOMBERG4
4.00
4.10
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
3M 6M 1Y 2Y 3Yr 5Y 7Y 10Y 20Y 30Y
U.S. Treasury Month-End Yield Curves
12/31/24 11/29/24
(17)(17)(14)
9
18
33 38 40 41 42
-30
-20
-10
0
10
20
30
40
50
3M 6M 1Y 2Y 3Yr 5Y 7Y 10Y 20Y 30Y
Basis Point Change
The undersigned acknowledge they have reviewed this quarterly investment report for the period ending December
6
Contents
7
8
9
10
Summary by Type 11
13
Cash Reconciliation Report 17
Transaction Statement 18
19
20
22
24
Change in Value 25
7
Par Value $169,008,353
$168,201,436
Book Value $168,577,160
Market Value $168,577,335
Unrealized Gain/Loss $174
$199,090
•1 41.70%•1 39.87%•1 13.98%•1 4.45%
2.65
0.06
0.05
0.06
8
BEGINNING BOOK VALUE
BEGINNING MARKET VALUE
0.12
5.03
$725.00
9
CHANGE
2,937,755.19
32,107,730.00 29,832,998.34
7,302,980.02 7,390,128.79 87,148.77 87,148.77
150,971.75
172,074.87 0.00 1,152.59
33,894,914.33 381,242.27
14,781,577.23
0.00 0.00 0.00 0.00
0.00 38,955,393.49 38,955,393.49 0.00
3,828,401.80 3,505,803.49 34,984.45
0.00 0.00
TOTAL
10
Overview
PAR VALUE MARKET VALUE BOOK VALUE
70,292,909.49 70,292,909.49 70,292,909.49 41.70% 1 0.00
39.87% 1 4.43
24,000,000.00 13.98% 141 4.80
7,500,000.00 7,500,150.00 7,499,975.54 4.45% 10 4.82
TOTAL
0.00 0.00
CURRENT QUARTER
11
PAR VALUE BOOK VALUE
1 2.70 4.49 1
TOTAL
2 3.71 4.49 1
4 24,000,000.00 13.97 4.80 141
TOTAL
1 7,390,128.79 7,390,128.79 4.38 4.49 1
TOTAL
1 4.49 1
TOTAL
1 4.49 1
TOTAL
1 4.37 4.35 1
1 7,500,000.00 7,499,975.54 4.55 4.82 10
TOTAL
1 38,955,393.49 38,955,393.49 23.08 0.00 1
TOTAL
12
PAR VALUE BOOK VALUE
2 3,505,803.49 3,505,803.49 2.08 1
TOTAL
1 18.57 0.00 1
TOTAL
13
PAR VALUE
MARKET PRICE
MARKET VALUE BOOK VALUE MV RATING
struction
12/31/2024
12/31/2024 0.00 4.49 1
1.00 0.00 2.70
NA
NA
PARK
12/31/2024
12/31/2024 0.00 4.49 1
1.00 0.00 3.72
12/31/2024
12/31/2024 2.73 2.73
0.00 2.73 1 1.00
2.73
0.00
2.73 0.00
NA
COMMERCIAL
PAPER
08/13/2024
08/14/2024 0.00 4.89 0.00 3.80
05/02/25
08/13/2024
08/14/2024 7,500,000.00 0.00 4.91 05/02/2025 122
98.40 0.00 4.38
22533TS98 05/09/25
08/13/2024
08/14/2024 5,000,000.00 4,828,033.33
0.00 4,828,033.33 05/09/2025 129
0.00 2.92
11/19/2024
11/20/2024 5,000,000.00 4,835,477.78
0.00 4,835,477.78 4.55 08/15/2025 227
97.23 0.00 2.88
COMMERCIAL PA
PER TOTAL AA-
AA-
14
PAR VALUE
MARKET PRICE
MARKET VALUE BOOK VALUE MV RATING
12/31/2024
12/31/2024 7,390,128.79 7,390,128.79
0.00 7,390,128.79 4.49 1
1.00
7,390,128.79
0.00
7,390,128.79 4.38
NA
NA
TexStar Round Rock 12/31/2024
12/31/2024 0.00 4.49 1
1.00 0.00
NA
NA
12/31/2024
12/31/2024 0.00 4.49 1
1.00 0.00
NA
NA
12/31/2024
12/31/2024 0.00 4.35 1
1.00 0.00 4.37
AAA
15
PAR VALUE
MARKET PRICE
MARKET VALUE BOOK VALUE MV RATING
01/10/25
01/29/2024
01/31/2024 7,500,000.00 0.00 4.82 01/10/2025 10
100.00
7,500,150.00 7,499,975.54 4.45
TOTAL
AAA
12/31/2024
12/31/2024 38,955,393.49 38,955,393.49
0.00 38,955,393.49 0.00 1
1.00
38,955,393.49
0.00
38,955,393.49 23.11
TOTAL AAA
AAA
12/31/2024
12/31/2024 0.00 1 1.00 0.00 0.45
12/31/2024
12/31/2024 2,748,777.34 2,748,777.34
0.00 2,748,777.34 4.49 1
1.00
2,748,777.34
0.00
2,748,777.34
NA
NA
12/31/2024
12/31/2024 0.00 0.00 1
1.00 0.00 18.59
TOTAL AAA
AAA
16
PAR VALUE
MARKET PRICE
MARKET VALUE BOOK VALUE MV RATING
17
PAR VALUE PRINCIPAL AMOUNT
11/20/2024 5,000,000.00 08/15/2025 4,835,477.78
PAR VALUE PRINCIPAL AMOUNT
11/15/2024 11/15/2024 5,000,000.00
18
PARK
PAR VALUE TOTAL
11/19/2024 11/20/2024 5,000,000.00 4,835,477.78 0.00 4.55
PAR VALUE BOOK VALUE TOTAL
NET
11/15/2024 11/15/2024 5,000,000.00 5,000,000.00 0.00
19
PAR VALUE
ORIGINAL
PREMIUM OR BEGINNING
BOOK VALUE
CURRENT
VALUE
TOTAL
AMORTIZATION BALANCE
78,902.78
22533TS98 5,000,000.00 4,828,033.33 4,858,833.33 59,033.33 89,833.34
5,000,000.00 4,835,477.78 0.00 25,783.33 25,783.33
5,000,000.00 33,250.00 0.00 0.00
7,500,000.00 7,288,331.25 91,425.00 139,125.00
TOTAL
7,500,000.00 7,499,725.54 250.00 7,499,975.54 913.04
TOTAL
20
PAR VALUE
PRINCIPAL
BEGINNING CURRENT
ACCRUAL
0.00 0.00 0.00
TOTAL
0.00 0.00 0.00 0.00 0.00
22533TS98 5,000,000.00 4,828,033.33 0.00 0.00 0.00 0.00 0.00
5,000,000.00 4,835,477.78 0.00 0.00 0.00 0.00 0.00
7,500,000.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 94,974.98 94,974.98 0.00
2.73 2.73 0.00 0.00 447.25 447.25 0.00
TOTAL
7,390,128.79 7,390,128.79 0.00 0.00 87,148.77 87,148.77 0.00
TOTAL
TexStar Round Rock 0.00 0.00 150,971.75 150,971.75 0.00
TOTAL
0.00 0.00 0.00 0.00 1,152.59 1,152.59 0.00
TOTAL
0.00 0.00 381,242.27 381,242.27 0.00
21
PAR VALUE
PRINCIPAL
BEGINNING CURRENT
ACCRUAL
TOTAL
0.00 0.00 115,005.17 87,271.80 27,733.37
7,500,000.00 0.00 90,187.50 0.00
TOTAL
0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL
38,955,393.49 38,955,393.49 0.00 0.00 0.00 0.00 0.00
TOTAL
2,748,777.34 2,748,777.34 0.00 0.00 0.00
0.00 0.00 0.00
TOTAL
0.00 0.00 0.00 0.00 0.00
TOTAL
22
VALUE
BEGINNING
BOOK VALUE VALUE
COUPON
RATE
NET
AMORTIZATION/
ACCRETION
INCOME
2,937,755.19 12/31/2024 0.00 4.49 0.00 0.00
TOTAL
0.00 4.89 0.00 78,902.78 0.00 78,902.78
2.73 38.08 2.73 12/31/2024 0.00 447.25 0.00 0.00 447.25
22533TS98 5,000,000.00 4,858,833.33 05/09/2025 0.00 0.00 59,033.33 0.00 59,033.33
0.0 11/15/2024 0.00 0.00 11/15/2024 0.00 5.47 0.00 33,250.00 0.00 33,250.00
5,000,000.00 0.00 08/15/2025 0.00 4.55 0.00 25,783.33 0.00 25,783.33
7,500,000.00 7,288,331.25 05/02/2025 0.00 4.91 0.00 91,425.00 0.00 91,425.00
12/31/2024 0.00 4.49 94,974.98 0.00 0.00 94,974.98
TOTAL
7,390,128.79 7,302,980.02 7,390,128.79 12/31/2024 0.00 4.49 87,148.77 0.00 0.00 87,148.77
TOTAL
TexStar Round Rock 12/31/2024 0.00 4.49 150,971.75 0.00 0.00 150,971.75
TOTAL
0.00 172,074.87 0.00 12/31/2024 0.00 4.49 1,152.59 0.00 0.00 1,152.59
TOTAL
23
VALUE
BEGINNING
BOOK VALUE VALUE
COUPON
RATE
NET
AMORTIZATION/
ACCRETION
INCOME
33,894,914.33 12/31/2024 0.00 4.49 381,242.27 0.00 0.00 381,242.27
TOTAL
7,500,000.00 7,499,725.54 7,499,975.54 01/10/2025 4.81 4.82 90,187.50 250.00 0.00 90,437.50
7,282,402.23 12/31/2024 4.31 4.35 115,005.17 0.00 0.00 115,005.17
TOTAL
0.00 0.00 0.00 12/31/2024 4.31 5.19 0.00 0.00 0.00 0.00
TOTAL
38,955,393.49 0.00 38,955,393.49 12/31/2024 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL
12/31/2024 0.00 0.00 0.00
2,748,777.34 2,748,777.34 12/31/2024 0.00 4.49 0.00 0.00
TOTAL
0.00 12/31/2024 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL
24
AMOUNT
PARK
05/02/2025 7,500,000.00
22533TS98 05/09/2025 5,000,000.00
08/15/2025 5,000,000.00
01/10/2025 7,500,000.00
01/10/2025 Coupon 180,375.00
25
PAR VALUE
BEGINNING BOOK
VALUE
BEGINNING MARKET
VALUE
CHANGE IN
BOOK VALUE
CHANGE IN
MARKET VALUE
VALUE
VALUE
4.49 12/31/2024
2,937,755.19
2,937,755.19
TOTAL
PARK
0.0 11/15/2024
0.00
5.47 05/15/2024
11/15/2024
0.00
0.00 0.00 0.00
0.00
2.73 12/31/2024
447.25
447.25
38.08
38.08
2.73
2.73
4.49 12/31/2024
94,974.98
94,974.98
4.89 08/13/2024 0.00
0.00 0.00 0.00
78,902.78
78,902.78
7,500,000.00 4.91 08/13/2024
05/02/2025
0.00
0.00
7,288,331.25
7,288,331.25 0.00 0.00
91,425.00
91,425.00
22533TS98 5,000,000.00
08/13/2024
05/09/2025
0.00
0.00
4,858,833.33
4,858,833.33 0.00 0.00
59,033.33
59,033.33
5,000,000.00 4.55 11/19/2024
08/15/2025
0.00
0.00
0.00
0.00 4,835,477.78 0.00
TOTAL
PARK
7,390,128.79 4.49 12/31/2024
87,148.77
87,148.77
7,302,980.02
7,302,980.02 87,148.77 0.00
87,148.77
87,148.77
7,390,128.79
7,390,128.79
TOTAL
ROCK
26
PAR VALUE
BEGINNING BOOK
VALUE
BEGINNING MARKET
VALUE
CHANGE IN
BOOK VALUE
CHANGE IN
MARKET VALUE
VALUE
VALUE
TexStar Round Rock 4.49 12/31/2024
150,971.75
150,971.75 0.00
TOTAL
0.00 4.49 12/31/2024
1,152.59
1,152.59
172,074.87
172,074.87 0.00 0.00
0.00
TOTAL
4.49 12/31/2024
381,242.27
381,242.27
33,894,914.33
33,894,914.33 0.00
TOTAL
4.35 12/31/2024
115,005.17
87,271.80
7,282,402.23
7,282,402.23 87,271.80 0.00
87,271.80
87,271.80
7,500,000.00 4.82 01/29/2024
01/10/2025
90,187.50
0.00
7,499,725.54
7,499,175.00 0.00 0.00
250.00
975.00
7,499,975.54
7,500,150.00
TOTAL
0.00 5.19 12/31/2024
0.00
0.00
0.00
0.00 0.00 0.00
0.00
0.00
0.00
0.00
TOTAL
27
PAR VALUE
BEGINNING BOOK
VALUE
BEGINNING MARKET
VALUE
CHANGE IN
BOOK VALUE
CHANGE IN
MARKET VALUE
VALUE
VALUE
38,955,393.49 0.00 12/31/2024
0.00
0.00
0.00
0.00 0.00 0.00
38,955,393.49
38,955,393.49
38,955,393.49
38,955,393.49
TOTAL
12/31/2024 11,988.54 0.00
11,988.54
11,988.54
2,748,777.34 4.49 12/31/2024 704,323.21 2,748,777.34
2,748,777.34
TOTAL
0.00 12/31/2024
0.00
0.00
0.00
0.00 0.00 0.00
TOTAL
which the security can be sold.
Statements may include positions from unmanaged accounts provided for reporting purposes. Unmanaged accounts are managed directly by the client and are not included in the accounts