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Home My WebLink About05-13-13 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, May 13, 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 March 11,2013,meeting of the Fiscal Affairs Committee –P. Fogarty 3. Receive and review SecondQuarter (FY 2013) Investment Report –M. Dolby 4. Receive and review months of December (FY2012) January, February, and March (FY 2013) 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 May 13,2013, agenda of items to be considered by the Fiscal Affairs Committeewas posted on the City Hall bulletin board on May 7, 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 May 13, 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 MARCH11,2013 March11, 2013, at 5:00p.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 5:17p.m. Committee MemberTommy Moser was present.Also present wereCity Secretary Patrice Fogarty, Assistant City Manager Traci Leachand Controller Phyllis Rinehart.Absent: Committee Member Leonard and Alternate Member 1 Zemanek and Alternate Member 2 Martin. 2.Consider approval of Minutes of the January 28,2013,meeting of the Fiscal Affairs Committee –P. Fogarty Committee member Tommy Mosermoved to approve the minutes of the January 28, 2013, MOTION PASSED. meeting.Chairman Engelkenseconded. Ayes:Chairman Engelkenand Committee MemberMoser Nays:None Absent:Committee Member Leonardand Alternate Member 1 Zemanekand Alternate Member 2 Martin 3.Receive and review 2012 Comprehensive Annual Finance Report (CAFR)–P.Rinehart Laura Lynch of Whitley Pennprovidedan overview of the2012 Comprehensive Annual Finance Report (CAFR). 4.Set date for next meeting –P. Rinehart The Committee setApril 22, 2013,at 5:00 p.m.,as the date and time for the next meeting. 5.Administrative Reports–C. Alexander There were no administrative reports. 6.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. Page 1of 2 March 11, 2013, Fiscal Affairs Committee Minutes 7.Adjourn There being no further businessthe meeting was adjourned at 5:31 p.m. Respectfully submitted, ________________________________ Patrice Fogarty, City Secretary Passed and approved on the _____day of___________, 2013. ________________________________ Chairman Chuck Engelken Page 2of 2 March 11, 2013, 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 : April 26, 2013 SUBJECT :Quarterly Investment Report For the second quarterof the 2013fiscal year, the City’s investment portfolio yield averaged 0.18%, which is above the average yield of our benchmarkat 0.11% (see graph below).Our benchmark is the 6-month T-Bill rate. Rates remain at record lows,and are not projected to increase until late 2014, possibly even 2015. The total interest earned for the 2013fiscal yearfor all fundsis $56,519which is approximately 48% of the $118,850budgeted for the year. st At March 31,the City’s portfolio consisted of 53%in Texpool, 22% in Agency Notes and 25% in Logic. Very little 2-year paper is being issued, so the majority of the portfolio remains in the investments pools. The mostcurrent overnight rate was set onDecember 16, 2008at 0.00% to 0.25%.At the end of thesecond quarter, the City’s portfolio consisted of 78% of the portfolio maturing overnight, 4% of the City’s portfolio matures in 1-12 months, 11% maturing in 12-24 months and 7% maturing beyond two years. 1 Currently, the 3-month T-Bill is at 0.09%; 2-year, at 0.26%; 5-year, at 0.85%; and, the 20-year is at 2.78% see yield curve below). As depicted below, there is not much yield to be gained in the shorter term investments. The overnight rate is currently at 0.00% to .25%.Although there have been some signs that a recovery may be in the early stages, there is not sign of movement until 2014, or possibly 2015. We will continue to focus on laddering the portfolio to maintain a constant cash flow and a liquid position. 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. 2 Portfolio Composition and Value as of March 31, 2013 100.00% 80.00% ParBookMarketDays to 60.00% ValueValueValueMaturity Investment Pools52,615,44052,615,44052,615,4401 40.00% Agencies14,500,00014,500,00014,504,218551 Total67,115,44067,115,44067,119,657120 20.00% 0.00% Investment PoolsCDsAgencies Mar-13Mar-12 Investment Maturity Schedule as of March 31, 2013 Book Overnight ValuePercent 1-12 months Overnight52,615,44078.40% 1-12 months2,500,0003.72% 1-2 years7,500,00011.17% 1-2 years 2-3 years4,500,0006.70% Total67,115,440100.00% 2-3 years Portfolio Performance for the month of March 31, 2013 1.00% Weighted PortfolioBenchmarkAverage 0.80% YieldYield*Maturity Pooled Funds0.19%0.11%4.13 months 0.60% Bond Funds0.10%0.09%1 day 0.40% Total0.15%0.10%3.99 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 March 31, 2013 200,000 BudgetActualPercent 150,000 General71,50029,98741.94% Enterprise9,5005,45657.44% 100,000 Internal Service11,0005,08546.23% Other Funds26,85015,99159.56% 50,000 Total118,85056,51947.56% - GeneralEnterpriseInternal Other Funds Service BudgetActual WAM - Pooled Funds Yield Curve 4.50 0.90% 0.80% Average for March 4.00 0.70% % of funds invested in:20132012 3.50 0.60% Securities & Pools97.17%92.03% 3.00 0.50% Bank Depository2.83%7.97% 0.40% 2.50 Total % of funds invested100.00%100.00% 0.30% 2.00 0.20% 1.50 0.10% Operating Account Balance1,954,0325,309,776 1.00 0.00% 3 mo6 mo1 yr2yr5yr 0.50 0.00 Jan-13Feb-13Mar-13 Jan-13Feb-13Mar-13 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%0.18%0.18%0.19% Benchmark 0.15%0.14%0.12%0.11%0.12%0.11% Additional Earnings (over 6 month Treasury Bill) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13 Add Erng 2,604 2,733 3,631 2,263 1,341 2,533 Cumm Erng 2,604 5,337 8,968 11,231 12,572 15,105 15,105 15,105 15,105 15,105 15,105 15,105 Investment Maturity & Cashflow (excluding Texpool, TexSTAR & Logic) 3,000,000 2,000,000 1,000,000 - Apr-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 5,842 7,052 4,218 Monthly Portfolio Division 48% 52% Wells FargoCoastal Securities Average Return on Investments 0.45% 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Coastal SecuritiesWells Fargo Series1 0.43%0.44%