Lakeland’s investment portfolio last year earned more than it ever has, thanks to higher interest rates, Lakeland City Treasurer Jeff Stearns told city commissioners Tuesday.

Stearns’s report to the commission focused on the city’s Pooled Investments Fund, which includes most of the city’s operating and reserve funds. It currently totals $785 million.

A graph shows this year's record investment profit.
A graph shows this year’s record investment profit. | Graph courtesy of the city of Lakeland

The city commission voted years ago to adopt an investment policy. That allows city staff to put money into a range of investment products outside of those allowed by state statute. They include money market funds, bank deposits and short to intermediary bonds, most of which are AAA rated bonds. By state law, the city can’t invest in stocks.

Stearns, who has worked for the city since 2006, said the pooled investment fund earnings in fiscal year 2024, which ended Sept. 30, totaled $35.7 million. That was $6.5 million more than the prior fiscal year, or 18% higher. The money is put back into the general fund.

The amount of the Pooled Investment Fund totaled just under $200 million in 2001. Last fiscal year, it was about $772 million.

It’s the city’s second highest revenue source:

  • Property taxes: $55.9 million
  • Pooled Investment Fund: $35.7 million
  • Lakeland Electric dividend: $33.4 million
  • State revenue sharing: $14.8 million
  • Utility taxes: $12.9 million
  • Water and Wastewater dividend: $10 million
  • Communication Service Tax: $5.2 million
  • Solid Waste Dividend: $1.7 million

Stearns said the city’s performance is due to three things: the size of the pool, which is significantly larger than it was in 2001; the interest rate, which is much higher than it was two years ago; and how well the city is investing.

There are three other main groups of city investments:

  • Retirement funds: $1.278 billion
  • Public Improvement Endowment Fund: $233 million
  • Miscellaneous funds, including the cemetery, survivor benefits, and the healthcare trust: $22 million

The city’s fiscal year 2024 budget was nearly $750 million.

SEND CORRECTIONS, questions, feedback or news tips: newstips@lkldnow.com

Something went wrong. Please refresh the page and/or try again.

Kimberly C. Moore, who grew up in Lakeland, has been a print, broadcast and multimedia journalist for more than 30 years. Before coming to LkldNow in the spring of 2022, she was a reporter for four years with The Ledger, first covering Lakeland City Hall and then Polk County schools. She is the author of “Star Crossed: The Story of Astronaut Lisa Nowak," published by University Press of Florida. Reach her at kimberly@lkldnow.com or 863-272-9250.

Leave a comment

Your thoughts on this? (Comments are moderated; first and last name are required.)