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CITY OF LA PORTE <br />Interoffice Memorandum <br />TO: Chuck Engelken, Councilmember <br /> Jay Martin, Councilmember <br />John Zemanek, 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: February 12, 2019 <br />SUBJECT: Quarterly Investment Report <br />For the first quarter of the 2019 fiscal year, the City’s investment portfolio yield averaged 2.11%, which is below <br />the average yield of our benchmark at 2.50 % (see graph below). Since the City’s practice is to hold investments <br />until maturity, many of the agencies in the portfolio are yielding lower than the benchmark of the 6-month T-Bill <br />rate. As securities mature, staff will reinvest at higher rates. The total interest earned through December 2019 for <br />all funds is $455,086, which is 70% of the budget of $647,700. <br />City vs. Benchmark <br />3.00% <br />2.50% <br />2.00% <br />1.50% <br />1.00% <br />` <br />0.50% <br />0.00% <br />Portfolio YieldBenchmark <br /> <br />st <br />At December 31, the City’s portfolio totaled $89,438,771 and consisted of 18% in Texpool, 49% in Agency Notes, <br />2% in Texas Class and 31% in Logic. Half of the portfolio remains in the investment pools to maintain adequate <br />liquidity while pursuing opportunities for to optimize yield. Staff will continue to focus on laddering and <br />diversifying the portfolio through the purchase of agencies to strengthen returns. <br />By Investment Type <br />2% <br />49% <br />31% <br />18% <br />TexpoolLogicTexas CLASSAgency Notes <br /> <br /> 1 <br /> <br />