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Home My WebLink About01-28-13 Fiscal Affairs Committee CHUCK ENGELKEN,CHAIR JOHN ZEMANEK CouncilmemberDistrict 2 Councilmember At-Large A Alternate Member 1 DARYL LEONARD Councilmember District 3 JAY MARTIN Councilmember District 5 TOMMY MOSER Alternate Member 2 Councilmember District 4 CITYOF LA PORTE FISCAL AFFAIRS COMMITTEE MEETING AGENDA Notice is hereby given of ameeting of the City of La Porte Fiscal Affairs Committee to be held onMonday, January 28, 2013,at 5:00p.m., in the La Porte City Hall Council Chambers, 604 West Fairmont Parkway, LaPorte, Texas, regarding the items of business according to the agenda listed below: 1. Call to Order 2. Consider approval of minutes of the November 12,2012,meeting of the Fiscal Affairs Committee – P. Fogarty 3. Receive and review FirstQuarter (FY 2013) Investment Report –M. Dolby 4. Receive and review months of OctoberandNovember(FY 2012) Purchasing Card Expenditures – M. Dolby 5. Set date for next meeting –M. Dolby 6. Administrative Reports –C. Alexander 7. Committeecomments regarding matters appearing on agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies –Committee members Engelken, Leonard, Moser, Martin, and Zemanek. 8. Adjourn In compliance with the Americans with Disabilities Act, the City of La Portewill provide for reasonable accommodations for persons attending publicmeetings. To better serve attendees, requestshould be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATION I certify that a copy of the January 28,2013, agenda of items to be considered by the Fiscal Affairs Committeewas posted on the City Hall bulletin board on January 22,2013. Patrice Fogarty,City Secretary I certify that the attached notice and agenda of items was removed by me from the City Hall bulletin board on the ____ day of ________________, 2013. __________________________________________________________________ Name and Title Page 1of 1 January 28, 2013, Fiscal Affairs Committee Agenda CHUCK ENGELKEN,CHAIR JOHN ZEMANEK CouncilmemberDistrict 2 Councilmember At-Large A Committee Member Alternate Member 1 DARYL LEONARD JAY MARTIN Councilmember District 3 Councilmember District 5 Committee Member Alternate Member 2 TOMMY MOSER Councilmember District 4 Committee Member MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE NOVEMBER 12,2012 November12, 2012, at 4:30p.m. The Fiscal Affairs Committee met on in the La Porte City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, to considerthe following items of business: 1.Call to Order ChairmanChuck Engelken called the meeting to order at 4:31p.m. Others present: Committee MemberTommy Moser,andAlternate Member 1 John Zemanek. Absent: Committee Member Daryl Leonardand Alternate Member 2 Jay Martin.Also present wereCity Secretary Patrice Fogarty, City Manager Corby Alexander, Assistant City Manager Traci Leach, Finance Director Michael Dolbyand Controller Phyllis Rinehart. 2.Consider approval of Minutes of theSeptember24,2012,meeting of the Fiscal Affairs Committee –P. Fogarty Committee member Mosermoved to approve the minutes of the September24, 2012,meeting of .MOTION PASSED. the Fiscal Affairs CommitteeChairmanEngelkenseconded. Ayes:ChairmanEngelken,Committee MemberMoserandAlternate Member 1 Zemanek Nays:None Absent:Committee Member Leonardand Alternate Member 2 Martin 3.Receive and review Fourth Quarter (FY 2012) Investment Report–M. Dolby Finance Director Michael Dolby presented the Fourth Quarter (FY 2012) Investment Report. 4.Receive and review months of June, July,August and September (FY 2012) Purchasing Card Expenditures –M. Dolby Finance Director Michael Dolby presentedmonth of June, July, August and September (FY 2012) Purchasing Card Expenditures. 5.Set date for next meeting –M. Dolby The Committee setJanuary 21, 2013,at 5:00 p.m., as the date and time for the next meeting. 6.Administrative Reports –C. Alexander City Manager Corby Alexander reported the Monument Inn has been paying sales taxes to the City of La Porte since 1988,andit is not in the City’s jurisdiction.Mr. Alexander and Finance Director Page 1of 2 November 12, 2012,Fiscal Affairs Committee Minutes Michael Dolby informed the City would have to reimburse the Monument Inn for only the past four years. 7. Committee Comments – Matters appearing on agenda;Recognition of community members, city employees, and upcoming events;Inquiry of staff regarding specific factual information or existing policy. There were no Committee comments. 8. Adjourn There being no further business, Committee Member Zemanekmoved to adjourn the meeting. MOTION PASSED. Committee Member Moser seconded. Ayes:Chairman Engelken, Committee Member Moser and Alternate Member 1 Zemanek Nays: None Absent:Committee Member Leonard and Alternate Member 2 Martin The meetingwas adjourned at4:52p.m. Respectfully submitted, ________________________________ Patrice Fogarty, City Secretary th Passed and approved on the 28 day ofJanuary, 2013. ________________________________ Chairman Chuck Engelken Page 2 of 2 November 12, 2012, Fiscal Affairs Committee Minutes CITY OF LA PORTE Interoffice Memorandum TO : Chuck Engelken, Councilmember Tommy Moser, Councilmember Daryl Leonard, Councilmember John Zemanek, Councilmember Jay Martin, Councilmember Corby Alexander, City Manager Traci Leach, Assistant City Manager FROM : Michael Dolby, Director of Finance Shelley Wolny, Treasurer DATE : January 16, 2013 SUBJECT : Quarterly Investment Report For the first quarter of the 2013 fiscal year, the City’s investment portfolio yield averaged 0.24%, which is above the average yield of our benchmark at 0.14% (see graph below). Our benchmark is the 6-month T-Bill rate. Rates remain at record lows, and are not projected to increase for quite a while. The total interest earned for the 2013 fiscal year for all funds is $39,354 which is approximately 33% of the $118,850 budgeted for the year. City vs. Benchmark 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% ` 0.00% Portfolio YieldBenchmark st At December 31, the City’s portfolio consisted of 46% in Texpool, 21% in Agency Notes and 33% in Logic (see pie chart below). By Investment Type 33% 46% 21% TexpoolLogicAgency Notes 1 The most current overnight rate was set on December 16, 2008 at 0.00% to 0.25%. At the end of the first quarter, the City’s portfolio consisted of 79% of the portfolio maturing overnight (see graph below), 5% of the City’s portfolio matures in 1-12 months, 8% maturing in 12-24 months and 8% maturing beyond two years. By Investment Maturity 8% 8% 5% 79% Overnight1-12 Months 12-24 Months24-36 Months Currently, the 3-month T-Bill is at 0.07%; 2-year, at 0.26%; 5-year, at 0.70%; and, the 20-year is at 2.47% see yield curve below). Yield Curve 3.00% 2.00% 1.00% 0.00% Treasury Bills 3 months agocurrent The overnight rate is currently at 0.00% to .25%. We will continue to focus on laddering the portfolio to maintain a constant cash flow and a liquid position. 2 2 Year T-Note 8.00% 6.00% 4.00% 2.00% 0.00% In summary, we will continue to invest the City’s funds in conservative investments, as authorized by the Public Funds Investment Act, always keeping in mind Safety first, and then Liquidity and lastly Yield. 3 Portfolio Composition and Value as of December 31, 2012 100.00% 80.00% ParBookMarketDays to 60.00% ValueValueValueMaturity Investment Pools41,201,80241,201,80241,201,8021 40.00% Agencies11,000,00011,000,00011,008,838621 Total52,201,80252,201,80252,210,639132 20.00% 0.00% Investment PoolsCDsAgencies Dec-12Dec-11 Investment Maturity Schedule as of December 31, 2012 Book Overnight ValuePercent 1-12 months Overnight41,201,80278.93% 1-12 months2,500,0004.79% 1-2 years4,000,0007.66% 1-2 years 2-3 years4,500,0008.62% Total52,201,802100.00% 2-3 years Portfolio Performance for the month of December 31, 2012 1.00% Weighted PortfolioBenchmarkAverage 0.80% YieldYield*Maturity Pooled Funds0.24%0.12%4.58 months 0.60% Bond Funds0.15%0.07%1 day 0.40% Total0.20%0.10%4.39 months 0.20% 0.00% *The pooled funds benchmark is based on the average monthly yield of a 6-month Treasury. Pooled FundsBond FundsTotal The bond funds benchmark yield is based on the average monthly yield of a 3-month Treasury. The total is based on weighted average monthly benchmark yields. Portfolio YieldBenchmark Yield* Portfolio Earnings as of December 31, 2012 200,000 BudgetActualPercent 150,000 General71,50019,59527.41% Enterprise9,5004,07442.89% 100,000 Internal Service11,0003,83034.82% Other Funds26,85011,85444.15% 50,000 Total118,85039,35433.11% - GeneralEnterpriseInternal Other Funds Service BudgetActual WAM -Pooled Funds Yield Curve 7.00 0.80% Average for December 0.70% 6.00 0.60% % of funds invested in:20122011 5.00 0.50% Securities & Pools78.36%79.00% 0.40% Bank Depository21.64%21.00% 4.00 0.30% Total % of funds invested100.00%100.00% 3.00 0.20% 0.10% 2.00 Operating Account Balance14,418,12212,880,961 0.00% 1.00 3 mo6 mo1 yr2yr5yr 0.00 Oct-12Nov-12Dec-12 Oct-12Nov-12Dec-12 Portfolio Yield vs Benchmark Aug-13 Jun-13 Apr-13 Feb-13 Dec-12 Oct-12 0.00%0.05%0.10%0.15%0.20%0.25%0.30% Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13 Portfolio Yield 0.24%0.24%0.24% Benchmark 0.15%0.14%0.12% Additional Earnings (over 6 month Treasury Bill) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13 Add Erng 2,604 2,733 3,631 Cumm Erng 2,604 5,337 8,968 8,968 8,968 8,968 8,968 8,968 8,968 8,968 8,968 8,968 Investment Maturity & Cashflow (excluding Texpool, TexSTAR & Logic) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Jan-13Apr-13Jul-13Oct-13Jan-14Apr-14Jul-14Oct-14Jan-15Apr-15 Market Gain (Loss) by Month 12,000 10,000 8,000 6,000 4,000 2,000 - OCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEP AGENCIES10,151 10,954 8,838 Monthly Portfolio Division 50% 50% Wells FargoCoastal Securities Average Return on Investments 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Coastal SecuritiesWells Fargo Series1 0.52%0.44%