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CITY OF LA PORTE <br />Interoffice Memorandum <br />TO: Chuck Engelken, Councilmember <br />Daryl Leonard, 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: January 15, 2018 <br />SUBJECT: Quarterly Investment Report <br />For the first quarter of the 2018 fiscal year, the City's investment portfolio yield averaged 1.28%, which is <br />below the average yield of our benchmark at 1.38 % (see graph below). Since the City's practice is to hold <br />investments until maturity, many of the agencies in the portfolio are yielding lower than the benchmark of <br />the 6-month T-Bill rate. As securities mature, staff will reinvest at higher rates. The total interest earned <br />through December 2018 for all funds is $255,101, which is 48% of the budget of $536,150. <br />City vs. Benchmark <br />At December 31', the City's portfolio totaled $78,595,415 and consisted of 26% in Texpool, 46% in <br />Agency Notes and 28% 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 />