HomeMy WebLinkAbout07-28-14 Fiscal Affairs Committee Meeting
CHUCK ENGELKEN, CHAIRCHUCK ENGELKEN, CHAIRJAY MARTIN
Councilmember, District 2Councilmember, District 2Alternate Member 1Alternate Member 1
DARYL LEONARDDOTTIE KAMINSKIDOTTIE KAMINSKI
Councilmember, District 3Councilmember, District 3Alternate Member 2Alternate Member 2
TOMMY MOSER
Councilmember, District 4Councilmember, District 4
CITY OF LA PORTE FISCAL AFFAIRS COMMITTEECITY OF LA PORTE FISCAL AFFAIRS COMMITTEE
MEETING AGENDAMEETING AGENDA
Notice is hereby given of a meeting of the City of La Porte Fiscal Affairs Committee to be held on Notice is hereby given of a meeting of the City of La Porte Fiscal Affairs Committee
to be held on
July 28, 2014July 28, 2014, in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, , in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas,
beginning at 5:00 PM regarding the items of business according to the agenda listed below:beginning at 5:00 PM regarding the items of business according to the agenda listed below:
1.Call to orderCall to order
2.Consider approval of minutes of the April 28, 2014, meeting of the Fiscal Affairs Committee Consider approval of minutes of the April 28, 2014, meeting of the Fiscal Affairs Committee
- P.
FogartyFogarty
3.Receive and review Third Quarter (FY2014) Investment Report Receive and review Third Quarter (FY2014) Investment Report -- M. Dolby M. Dolby
4.Receive and review month of March, April and May (FY2014) Purchasing Card Expenditures Receive and review month of March, April and May (FY2014) Purchasing Card Expenditures - M.
DolbyDolby
5.Set date for next meeting Set date for next meeting M. DolbyM. Dolby
6.6.Administrative Reports Administrative Reports Administrative Reports Administrative Reports C. AlexanderC. AlexanderC. AlexanderC. Alexander
7.Committee Comments regarding matters appearing on agenda Committee Comments regarding matters appearing on agenda Committee members Engelken, Committee members Engelken,
Leonard, Moser, and MartinLeonard, Moser, and Martin
8.AdjournAdjourn
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte
will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be received accommodations for persons attending public meetings. To better serve attendees,
requests should be received
24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATIONCERTIFICATION
I certify that a copy of the July 28, 2014, agenda of items to be considered by the Fiscal Affairs Committee was placed on I certify that a copy of the July 28, 2014, agenda of items
to be considered by the Fiscal Affairs Committee was placed on
the City Hall Bulletin Board on July 22, 2014 .the City Hall Bulletin Board on July 22, 2014 .
Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary
CHUCK ENGELKEN, CHAIR
JAY MARTIN
Councilmember District 2
Councilmember District 5
Committee Member
Alternate Member 1
DARYL LEONARD
DOTTIE KAMINSKI
Councilmember District 3
Councilmember At Large B
Committee Member
Alternate Member 2
TOMMY MOSER
Councilmember District 4
Committee Member
MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE
APRIL 28, 2014
April 28, 2014, at 5:00 p.m.,
The Fiscal Affairs Committee met on in the La Porte City Hall Council Chambers,
604 West Fairmont Parkway, La Porte, Texas, to consider the following items of business:
1.Call to Order
Chairman Chuck Engelken called the meeting to order at 5:00 p.m. Present were: Committee Member
Tommy Moser, Daryl Leonard and Alternate Member 1 Jay Martin. Absent: Alternate Member 2 Dottie
Kaminski. . Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, Finance
Director Michael Dolby, Controller Phyllis Rinehart and Treasurer Shelley Wolny.
2.Consider approval of Minutes of the March 10, 2014, meeting of the Fiscal Affairs Committee
P. Fogarty
Committee member Leonard moved to approve the minutes of the March 10, 2014, meeting.
MOTION PASSED.
Committee member Moser seconded.
Ayes: Chairman Engelken, Committee Member Moser, and Alternate
Member 1 Martin
Nays: None
Absent: Alternate Committee Member 2 Kaminski
3.Receive and review Second Quarter (FY2014) Investment Report M. Dolby
Treasurer Shelley Wolny provided the Second Quarter (FY2014) Investment Reportand advised the
value of investment is $68.7 million pretty close to last year.
4.Receive and review month of December (FY2013), January (FY2014) and February (FY2014)
Purchasing Card Expenditures M Dolby
Finance Director Michael Dolby presented Purchasing Card Expenditures for the month of December
(FY2013), January (FY2014) and February (FY2014).
Alternate Committee Member 1 Martin questioned if it was possible for a vendor to bill the City monthly
instead of multiple invoices. Finance Director Michael Dolby responded there may be a possibility but
the procurement cards are a way to receive points and discounts. Purchasing Manager Cherell
Committee Member 1 Martin questioned the services provided by G&K Services. Ms. Daeumer
Page 1 of 2
April 28, 2014, Fiscal Affairs Committee Minutes
Committee Member Leonard commented he was glad to see local businesses as the Top 20 Vendors.
5.Set date for next meeting M. Dolby
The Committee set July 28, 2014, at 5:00 p.m., as the date and time for the next meeting.
6.Administrative ReportsC. Alexander
City Manager Corby Alexander congratulated the Finance Department for receiving the Platinum
.
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, the meeting was adjourned at 5:12 p.m.
Respectfully submitted,
________________________________
Patrice Fogarty, City Secretary
Passed and approved on the _____ day of ___________, 2014.
________________________________
Chairman Chuck Engelken
Page 2 of 2
April 28, 2014, Fiscal Affairs Committee Minutes
CITY OF LA PORTE
Interoffice Memorandum
TO
: Chuck Engelken, Councilmember
Tommy Moser, Councilmember
Daryl Leonard, Councilmember
Jay Martin, Councilmember
Corby Alexander, City Manager
Traci Leach, Assistant City Manager
FROM
:Michael Dolby, Director of Finance
Shelley Wolny, Treasurer
DATE
: July 17, 2014
SUBJECT
:Quarterly Investment Report
For the thirdquarterof the 2014fiscal year, the City’s investment portfolio yield averaged 0.22%, which is
above the average yield of our benchmarkat 0.05% (see graph below).The City’s investment portfolio
exceeded the benchmark by an average of 14basis points for the year, which equates to approximately
$43,806in additional earnings for the year. Our benchmarkis the 6-month T-Billrate. The total interest
earned for the 2014 fiscal yearfor all fundsis $93,147 which isapproximately 85% of the $109,572
budgeted for the year.
City vs. Benchmark
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
`
0.00%
Portfolio YieldBenchmark
th
AtJune 30,the City’s portfoliototaled $,, and consisted of 27%in Texpool, 33% in Agency
Notesand40% in Logic. Theportfolioremainsequally spread between the two investmentpoolsto
maintainadequate liquidityand agencies. Asopportunities arise, staff will continue to focus on laddering
and diversifying the portfolio through the purchase of agencies tostrengthen returns.
1
At the end of thethirdquarter, the City’s portfolio consisted of 67% of the portfolio maturing overnight,3%
of the City’s portfolio matures in 1-12months,14% maturing in 12-24 monthsand 16% maturing beyond
two years.
Currently, the 3-month T-Bill is at0.04%; 2-year, at0.45%; 5-year, at1.68%; and, the 20-year is at3.15%
(see yield curve below).A year ago, the 20-year treasury was yielding 3.07%.Rates have fluctuated slightly
on the long end; however, rates remain stagnant on the short end.
Yield Curve
4.00%
3.00%
2.00%
1.00%
0.00%
Treasury Bills
3 months agocurrent
The most currentovernight rate was set on December 16, 2008 at 0.00% to 0.25%.The target funds rate is
projected toremain unchanged through 2014.The consensus among economists is that the FedFunds rate
may slowly start to increasebeginningin the spring of 2015, although that highly depends on the health of
the economy.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 June 30, 2014
80.00%
60.00%
ParBookMarketDays to
ValueValueValueMaturity
40.00%
Investment Pools40,960,71640,960,71640,960,71655
Agencies20,000,00120,000,00019,996,258703
20.00%
Total60,960,71760,960,71660,956,974268
0.00%
Investment PoolsAgencies
Jun-14Jun-13
Investment Maturity Schedule
as of June 30, 2014
1-12 months
Book
1-2 years
ValuePercent
Overnight40,960,71667.19%
Overnight
1-12 months1,500,0002.46%
1-2 years8,500,00013.94%
2-3 years10,000,00016.40%
Total60,960,716100.00%
2-3 years
Portfolio Performance
for the month of June 30, 2014
0.20%
Weighted
PortfolioBenchmarkAverage
YieldYield*Maturity
0.15%
Pooled Funds0.25%0.06%9.19 months
Bond Funds0.03%0.04%51 days
0.10%
Total0.14%0.05%8.97 months
0.05%
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 June 30, 2014
75,000
BudgetActualPercent
General71,00051,07671.94%
50,000
Enterprise9,5007,46678.59%
Internal Service10,5008,54181.34%
25,000
Other Funds18,87226,064138.11%
Total109,87293,14784.78%
-
GeneralEnterpriseInternal Other Funds
Service
BudgetActual
Yield Curve
WAM - Pooled Funds
1.80%
10.00
1.60%
Average for June
9.00
1.40%
% of funds invested in:20142013
8.00
1.20%
Securities & Pools93.78%95.03%
7.00
1.00%
Bank Depository6.22%4.97%
6.00
0.80%
Total % of funds invested100.00%100.00%
0.60%
5.00
0.40%
4.00
0.20%
3.00 Operating Account Balance4,045,6953,175,422
0.00%
2.00
3 mo6 mo1 yr2yr5yr
1.00
0.00
Apr-14May-14Jun-14
Apr-14May-14Jun-14
4
Portfolio Yield vs Benchmark
Aug-14
Jun-14
Apr-14
Feb-14
Dec-13
Oct-13
0.00%0.05%0.10%0.15%0.20%0.25%0.30%
Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14
Portfolio Yield
0.26%0.23%0.21%0.17%0.16%0.18%0.19%0.21%0.25%
Benchmark
0.08%0.10%0.10%0.07%0.08%0.08%0.05%0.05%0.06%
Additional Earnings
(over 6 month Treasury Bill)
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14
Add Erng
6,484 4,137 3,578 3,578 2,662 3,676 5,368 6,507 7,816
Cumm Erng
6,484 10,621 14,199 17,777 20,439 24,115 29,483 35,990 43,806 43,806 43,806 43,806
Investment Maturity & Cashflow
(excluding Texpool & Logic)
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
Jul-14Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17
5
Market Gain (Loss)
by Month
15,000
10,000
5,000
-
(5,000)
(10,000)
(15,000)
(20,000)
(25,000)
(30,000)
OCTNOVDECJANFEBMARAPRMAYJUNJULAUGSEP
AGENCIES
(2,915)(16)(13,162)(14,370)(8,742)(23,703)(15,149)10,028 (3,742)
Monthly Portfolio Division
45%
55%
Wells FargoCoastal Securities
Average Return on Investments
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
Coastal SecuritiesWells Fargo
0.56%0.58%
6
June 30, 2014
This report is in full compliance with the investment strategy as
established for the pooled investment fund and the Public Funds
Investment Act (Chapter 2256).
Michael G. Dolby, CPAShelley Wolny
Director of FinanceTreasurer
7