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CITY OF LA PORTE <br />Interoffice Memorandum <br /> <br />TO:Chuck Engelken, Councilmember <br /> Jay Martin, Councilmember <br />Corby Alexander, City Manager <br /> <br />FROM: Michael Dolby, Director of Finance <br /> Shelley Wolny, Assistant Director of Finance <br /> <br />DATE: August 8, 2022 <br /> <br />SUBJECT: Quarterly Investment Report <br /> <br />For the third quarter of the 2022 fiscal year, the City’s investment portfolio yield averaged 0.76%, which is below <br />the average yield of our benchmark at 1.58% (see graph below). The Federal Open Market Committee (FOMC) <br />voted to raise the feds funds target rate by a combined 125 basis points in May and June. As a result, rates have <br />risen quickly and earnings in the City’s pooled funds have struggled to keep pace; therefore, falling short compared <br />to the benchmark rate. The total interest earned through June 2022 for all funds is $396,463, which is <br />approximately 180% of the budget of $220,000. <br /> <br />City vs. Benchmark <br />2.50% <br />2.00% <br />1.50% <br />1.00% <br />` <br />0.50% <br />0.00% <br />Portfolio YieldBenchmark <br /> <br /> <br />th <br />, the City’s portfolio totaled $179,936,381 and consisted of 27% in Texpool, 12% in Agency Notes, 22% <br />At June 30 <br />in Texas Class, 4% in TexSTAR and 35% in Logic. The majority of the City’s portfolio still remains in the pools; <br />however, due to the increasing rate environment, fewer securities have been called. Staff continues to purchase <br />agency notes as new issues become available to continue to diversify the portfolio and begin rebuilding the <br />investment ladder. <br /> <br />At the end of the third quarter, the City’s portfolio consisted of 88% of the portfolio maturing overnight, 2% <br />maturing 1-12 months, 6% maturing in 12-24 months, and 4% maturing in 2-3 years. <br /> <br /> <br /> <br /> <br /> <br /> 1 <br /> <br />