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CITY OF LA PORTE <br />Interoffice Memorandum <br />TO: Chuck Engelken, Councilmember <br />Jay Martin, Councilmember <br />Dottie Kaminski, Councilmember <br />Corby Alexander, City Manager <br />Jason Weeks, Assistant City Manager <br />FROM: Michael Dolby, Director of Finance <br />Shelley Wolny, Treasurer <br />DATE: September 8, 2018 <br />SUBJECT: Quarterly Investment Report <br />For the third quarter of the 2018 fiscal year, the City's investment portfolio yield averaged 1.76%, which <br />is below the average yield of our benchmark at 2.05 % (see graph below). Since the City's practice is to <br />hold investments until maturity, many of the agencies in the portfolio are yielding lower than the benchmark <br />of the 6-month T-Bill rate. As securities mature, staff will reinvest at higher rates. The total interest earned <br />through June 2018 for all funds is $986,149, which is 184% of the budget of $536,150. <br />City vs. Benchmark <br />At June 30', the City's portfolio totaled $95,652,505 and consisted of 28% in Texpool, 42% in Agency <br />Notes, and 28% in Logic and 2% in Texas CLASS. Half of the portfolio remains in the investment pools <br />to maintain adequate liquidity while pursuing opportunities for to optimize yield. Staff will continue to <br />focus on laddering and diversifying the portfolio through the purchase of agencies to strengthen returns. <br />During the third quarter, three new agencies were purchased with yields ranging from 2.25% to 2.53%. <br />