1992-01-13 Regular Meeting - Laserfiche WebLink

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• • REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATE UESTED Januarv 13. 1992 REQUEST Jeff Litchfield DEPARTMENT Director of Finance REPORT XX RESOLUTION ORDINANCE EXHIBITS: Resolution 92-02 Memo from Director of Finance Copy of TexPool Information Statement SUMMARY AND RECOMMENDATION In 1989, the State of Texas authorized municipality participation in local government investment pools. A local government investment pool is an efficient method for public entities to combine their idle cash to maximize interest income. There are several local government investment pools operating in the State of Texas. After reviewing several of them, we believe that TexPool, which is managed by the State Treasurer, to be one of the best. Their emphasis is on safety of the principal, liquidity of the investment and finally yield. This matches our City's philosophy. Their eligible investments are in accordance with the Public Funds Investment Act of 1987, which also follows the City's Investment Policy. There are currently over 600 public entities who are members of TexPool. TexPool had an average daily invested balance of over 2 billion dollars in 1991. I have analyzed their yield and find that they are consistently higher than the T-Bill yield. We believe that it is in the City's best interest to participate in TexPool. Participation in the fund will be dependent on current market conditions. In reviewing their performance for the past year, approximately 50$ of the time, TexPool had interest rates that were better than we were able to receive elsewhere. ACTION REQUIRED BY COUNCIL: Approve or deny the passage of Resolution 92-02 AVAILABILITY OF FUNDS: GENERAL FUND UTILITY FUND OTHER ACCOUNT NUMBER: N/A FUNDS AVAILABLE: YES NO APPROVED FOR CITY COUNCIL AGENDA ROBERT T HERRERA CITY MANAGER ~-s-aa DATE