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Home My WebLink About10-27-14 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 October 27, 2014, in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, October 27, 2014, in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 4:30 PM regarding the items of business according to the agenda listed below:beginning at 4:30 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 September 22, 2014, meeting of the Fiscal Affairs Committee Consider approval of minutes of the September 22, 2014, meeting of the Fiscal Affairs Committee - S. HarrisS. Harris 3.Receive and review Fourth Quarter (FY2014) Investment Report Receive and review Fourth Quarter (FY2014) Investment Report -- M. Dolby M. Dolby 4.Receive and review month of June, July and August (FY2014) Purchasing Card Expenditures Receive and review month of June, July and August (FY2014) Purchasing Card Expenditures - M. DolbyDolby 5.5.Consider approval or other action regarding a recommendation to the La Porte City Council to Consider approval or other action regarding a recommendation to the La Porte City Council to Consider approval or other action regarding a recommendation to the La Porte City Council to Consider approval or other action regarding a recommendation to the La Porte City Council to amend the City of La Porte's Investment Policy amend the City of La Porte's Investment Policy -- S. Wolny S. Wolny 6.Receive and review Local Bidder Preference Policy and Local Bidder Preference Application Receive and review Local Bidder Preference Policy and Local Bidder Preference Application - M. DolbyDolby 7.Set date for next meeting Set date for next meeting M. DolbyM. Dolby 8.Administrative Reports Administrative Reports C. AlexanderC. Alexander 9.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 10.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 October 27, 2014, agenda of items to be considered by the Fiscal Affairs Committee was placed I certify that a copy of the October 27, 2014, agenda of items to be considered by the Fiscal Affairs Committee was placed on the City Hall Bulletin Board on October 21, 2014.on the City Hall Bulletin Board on October 21, 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 SEPTEMBER 22, 2014 September 22, 2014, at 4:30 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 4:40 p.m. Present were: Committee Member Tommy Moser and Alternate Member 2 Dottie Kaminski. Absent: Committee Member Daryl Leonard and Alternate Member 1 Jay Martin. Also present were Assistant City Secretary Sharon Harris, City Manager Corby Alexander, Finance Director Michael Dolby and Controller Phyllis Rinehart. 2.Consider approval of Minutes of the July 28, 2014, meeting of the Fiscal Affairs Committee P. Fogarty Committee member Moser moved to approve the minutes of the July 28, 2014, meeting. Alternate MOTION PASSED. Member 2 Kaminski seconded. Ayes: Chairman Engelken, Committee Member Moser and Alternate Member 2 Kaminski Nays: None Absent: Committee Member Leonard and Alternate Committee Member 1 Martin 3.Review and discuss a proposed Resolution of the City of La Porte, Texas approving General Fund Commitments of Fund Balance for Fiscal Year 2013-2014 M. Dolby Finance Director Michael Dolby presented a summary. Committee member Moser moved to approve the proposed Resolution of the City of La Porte, Texas approving General Fund Commitments of Fund Balance for Fiscal Year 2013-2014. Alternate Member MOTION PASSED. 2 Kaminski seconded. Ayes: Chairman Engelken, Committee Member Moser and Alternate Member 2 Kaminski Nays: None Absent: Committee Member Leonard and Alternate Committee Member 1 Martin Page 1 of 2 September 22, 2014, Fiscal Affairs Committee Minutes 4.Set date for next meeting M. Dolby The Committee set October 27, 2014, at 4:30 p.m., as the date and time for the next meeting. 5.Administrative ReportsC. 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. 7.Adjourn There being no further business, Committee Member Moser moved to adjourn the meeting at 4:44 p.m. MOTION PASSED Alternate Member 2 Kaminski seconded. . Respectfully submitted, ________________________________ Sharon Harris, Assistant City Secretary Passed and approved on the _____ day of ___________, 2014. ________________________________ Chairman Chuck Engelken Page 2 of 2 September 22, 2014, Fiscal Affairs Committee Minutes CITY OF LA PORTE Interoffice Memorandum TO : Chuck Engelken, Councilmember Daryl Leonard, Councilmember Tommy Moser, Councilmember Jay Martin, Councilmember Dottie Kaminski, Councilmember Corby Alexander, City Manager Traci Leach, Assistant City Manager FROM :Michael Dolby, Director of Finance Shelley Wolny, Treasurer DATE : October 16, 2014 SUBJECT :Quarterly Investment Report For the fourth quarter of the 2014 fiscal year, the City’s investment portfolio yield averaged 0.29%, which is above the average yield of our benchmarkat 0.05% (see graph below). The average yield for the year was 0.23%. The City’s investment portfolio exceeded the benchmark by an average of 16 basis points for the year, which equates to approximately $72,611in additional earnings for the year. Our benchmark isthe 6-month T-Billrate.Thetotalinterest earned for the 201fiscal yearfor all funds is $127,538 which exceeds the projected budget of $109,872 by nearly $18,000. City vs. Benchmark 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% ` 0.00% Portfolio YieldBenchmark th At September 30,the City’s portfoliototaled $53,771,873 and consisted of 25%in Texpool, 42% in Agency Notes and 33% in Logic. The portfolio remains proportionately spread between the two investment pools and agenciesto maintain adequate liquiditywhile pursuing opportunities for to optimize yield.Staff will continue to focus on laddering and diversifying the portfolio through the purchase of agenciesto strengthen returns. 1 At the end of thefourthquarter, the City’s portfolio consisted of 58% of the portfolio maturing overnight, 3% of the City’s portfolio matures in 1-12months,17% maturing in 12-24 monthsand 22% maturing beyond two years. Currently, the 3-month T-Bill is at0.02%; 2-year, at0.57%; 5-year, at1.77%; and, the 20-year is at 3.01%(see yield curve below). A year ago, the 20-year treasury was yielding 3.53%. Rates have fluctuated slightly on the long end; however, rates remain stagnant on the short end. 2 Yield Curve 4.00% 3.00% 2.00% 1.00% 0.00% Treasury Bills 3 months agocurrent The most current overnight 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 Fed Funds rate may slowly start to increase beginning in 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 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 September 30, 2014 80.00% 60.00% ParBookMarketDays to ValueValueValueMaturity 40.00% Investment Pools31,271,87331,271,87331,271,87355 Agencies22,500,00022,500,00022,474,330705 20.00% Total53,771,87353,771,87353,746,202327 0.00% Investment PoolsAgencies Sep-14Sep-13 Investment Maturity Schedule 1-12 months as of September 30, 2014 1-2 years Book ValuePercent Overnight31,271,87358.16% 1-12 months1,500,0002.79% 1-2 years9,000,00016.74% Overnight 2-3 years12,000,00022.32% 2-3 years Total53,771,873100.00% Portfolio Performance for the month of September 30, 2014 Weighted PortfolioBenchmarkAverage 0.30% YieldYield*Maturity Pooled Funds0.30%0.04%11.31 months 0.20% Bond Funds0.03%0.02%51 days Total0.17%0.03%10.95 months 0.10% 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 September 30, 2014 75,000 BudgetActualPercent General71,00074,112104.38% 50,000 Enterprise9,50011,745123.63% Internal Service10,50012,017114.45% 25,000 Other Funds18,87229,665157.19% Total109,872127,538116.08% - GeneralEnterpriseInternal Other Funds Service BudgetActual Yield Curve WAM - Pooled Funds 2.00% 12.00 1.80% Average for September 1.60% 10.00 % of funds invested in:20142013 1.40% Securities & Pools93.87%91.14% 1.20% 8.00 1.00% Bank Depository6.13%8.86% 0.80% Total % of funds invested100.00%100.00% 6.00 0.60% 0.40% 4.00 0.20% Operating Account Balance3,512,2105,195,355 0.00% 3 mo6 mo1 yr2yr5yr 2.00 0.00 Jul-14Aug-14Sep-14 Jul-14Aug-14Sep-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%0.35% 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%0.27%0.29%0.30% Benchmark 0.08%0.10%0.10%0.07%0.08%0.08%0.05%0.05%0.06%0.06%0.05%0.04% Additional Earnings (over 6 month Treasury Bill) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 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 8,808 10,024 9,973 Cumm Erng 6,484 10,621 14,199 17,777 20,439 24,115 29,483 35,990 43,806 52,614 62,638 72,611 Investment Maturity & Cashflow (excluding Texpool & Logic) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Oct-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)(19,361)2,276 (25,671) Monthly Portfolio Division 49% 51% Wells FargoCoastal Securities Average Return on Investments 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Coastal SecuritiesWells Fargo 0.59%0.76% 6 7 REQUEST FOR FISCAL AFFAIRS COMMITTEE AGENDA ITEMREQUEST FOR FISCAL AFFAIRS COMMITTEE AGENDA ITEM October 27, 2014October 27, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A S. Wolny S. Wolny Source of Funds:Source of Funds: Requested By:Requested By: N/A N/A Finance Finance Account Number:Account Number: Department: N/A N/A Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: N/A N/A Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Investment Policy1. Investment Policy SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The City Council of the City of La Porte originally adopted an Investment Policy on January 13, 1992, by The City Council of the City of La Porte originally adopted an Investment Policy on January 13, 1992, by Ordinance No. 1802. The Investment Policy governs how the City will invest the CityOrdinance No. 1802. The Investment Policy governs how the City will invest the Citys funds and outlines s funds and outlines administrative and legal guidelines for the Investment Officers to follow for the preservation of capital. The Public administrative and legal guidelines for the Investment Officers to follow for the preservation of capital. The Public Funds Investment Act requires that a City must present the Investment Policy to Council annually for review or Funds Investment Act requires that a City must present the Investment Policy to Council annually for review or amendment. The policy has been updated to reflect changes that were made to the Public Funds Investment Act during the last The policy has been updated to reflect changes that were made to the Public Funds Investment Act during the last Legislative Session. Additions have been highlighted in the policy and are summarized as follows:Legislative Session. Additions have been highlighted in the policy and are summarized as follows: 1.Investment strategy has been added to the Objectives Section. (page 2) Investment strategy has been added to the Objectives Section. (page 2) 2.The Responsibility and Control Section (page 2) has been expanded regarding oversight responsibility of the The Responsibility and Control Section (page 2) has been expanded regarding oversight responsibility of the The Responsibility and Control Section (page 2) has been expanded regarding oversight responsibility of the The Responsibility and Control Section (page 2) has been expanded regarding oversight responsibility of the Fiscal Affairs Committee and the City Manager. Fiscal Affairs Committee and the City Manager. 3.The Monitoring Section has been expanded (page 4) to include:The Monitoring Section has been expanded (page 4) to include: 1.Monitoring of credit ratings for investments Monitoring of credit ratings for investments 2.Monitoring FDIC status for mergers and acquisitions regarding CDs Monitoring FDIC status for mergers and acquisitions regarding CDs 4.Brokered CDs have been added under the allowable investments. (page 5) Brokered CDs have been added under the allowable investments. (page 5) 5.Wording regarding depository contracts and collateral has been added to the Selection of Financial Wording regarding depository contracts and collateral has been added to the Selection of Financial Institutions. (page 6) Institutions. (page 6) 6.Items Q and R have been added to the Management and Internal Controls Section. These items address Items Q and R have been added to the Management and Internal Controls Section. These items address the monitoring of credit ratings and FDIC status for institutions and mergers for brokered CDs. (page 8) the monitoring of credit ratings and FDIC status for institutions and mergers for brokered CDs. (page 8) Action Required by the Fiscal Affairs Committee:Action Required by the Fiscal Affairs Committee: Consider approval or other action of a recommendation to the City Council to amend the City of La PorteConsider approval or other action of a recommendation to the City Council to amend the City of La Portes s Investment Policy.Investment Policy. Approved for Fiscal Affairs Committee AgendaApproved for Fiscal Affairs Committee Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate City of La Porte, Texas Investment Policy Adopted by the City Council Of the City of La Porte On January 13, 1992, by Ordinance No. 1802 Amended: November 1995 August 1997 City of La Porte, Texas November 2000 Michael G. Dolby, CPA February 2003 Director of Finance February 2005 October 2005 Shelley Wolny July 2009 Treasurer May 2011 October 2013 October 2014 POLICY I. It is the policy of the City of La Porte, Texas (the "City") to administer and invest its funds in a manner which will preserve the principal and maintain the liquidity through limitations and diversification while meeting the daily cash flow requirements of the City. The City will invest all available funds in conformance with legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible. The purpose of this investment policyis to comply with all statutes governing the investment of the City’s funds,including the Public Funds Investment Act, Chapter 2256 of the Texas Government Code (the “ Act”), which requires the City to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of the City’s funds. SCOPE II. The City will strive to earn a return on funds invested at the highest investment return possible after taking in consideration the primary goals of preservation of principal and liquidity of funds invested, consistent with the policy objectives described below. This investment policy applies to the investment activities of the government of the City of La Porte, Texas. FUNDS INCLUDED The City’s funds, which are pooled together and constitute the investment portfolio, include all financialassets of all funds managed by the City, including but not limited to receipts of tax revenues, charges for services, bondproceeds, interest incomes, loans and funds received by the City where the City performs a custodial function.These funds are accounted for in the City’s Comprehensive Annual Financial Report (CAFR) and include: General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Enterprise Funds Internal Service Funds Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. OBJECTIVES III. SAFETYThe primary objective of the City's investment activity is the preservation of capital and the protection of investment principal in the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they are from securities defaults or erosion of market value.The City will strive to minimize credit risk by limiting investments to the safest types of investments, prequalifying the financial institutions and broker/dealers with which the City conducts business, and diversify the investment portfolio so that potential losses on individual issuers will be minimized. To minimize interest rate risk, the City will ladder the portfolio and match investments with future cash requirements and invest operating funds in shorter, more liquid securities and investments. 1 LIQUIDITYThe City's investmentportfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets.Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or local government investment pools that offer same day liquidity. PUBLIC TRUSTAll participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment Officials shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. YIELD(Optimization of Interest Earnings)The City's cash management portfolio shall be designed with the objective of regularly meetingor exceeding the average rate of return on U.S. Treasury Bills at a maturity level comparable to the City’sweighted average maturity in days. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified herein and prudent investment principles. INVESTMENT STRATEGY The City maintains a commingled portfolio for investment purposes which incorporates the specific uses and the unique characteristics of the funds in the portfolio. The investment strategy has as its primary objective assurance that anticipated liabilities are matched and adequate investmentliquidity provided. The City shall pursue conservative portfolio management strategy. This may be accomplished by creating a laddered maturity structure with some extension for yield enhancement.The maximum dollar weighted average maturity of 2 years or less will be calculated using the stated final maturity date of each security. RESPONSIBILITY AND CONTROL IV. Oversight Responsibility for the investment activity of the City of La Porte shall rest with the Fiscal Affairs Committee and the City Manager.They will designate investment officer(s), receive and review quarterly reporting, approve and provide for investment officer training, approve broker/dealers, and review and adopt the Investment Policy and Strategy at least annually. DELEGATIONManagement responsibility for the investment program is hereby delegated to the Director of Finance, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. SUBORDINATESAll persons involved in investment activities will be referred to as "Investment Officers." No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance. The Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of Subordinate Investment Officers.All investment officers,including the Director of Finance,will demonstrate competence in the execution of the city’s investments. All Investment Officers will insure compliance with the investment program with ongoing training and evaluation by management. 2 PRUDENCEInvestments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion and intelligencewouldexercise in the management of the person’sown affairs, notfor speculation,but for investment,considering the probable safety of capital and the probable income to be derived. Investment Officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. IMDEMNIFICATIONThe Director of Finance and the Investment Officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment’s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments. ETHICS DISCLOSURE AND CONFLICTS OF INTERESTOfficers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution and management of the investment program, or which could impair their ability to make impartial investment decisions. Employees and Investment Officers shall disclose to the CityManager any material interests in financial institutions that conduct business with the City of La Porte, and shall further disclose any personal financial or investment positions that could be related to the performance of the City's investment portfolio. Employees and Investment Officers shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the City of La Porte. An Investment Officer of the City of La Porte who has a personal business relationship with an organization seeking to sell an investment to the City of La Porte shall file a statement disclosing that personal business interest. An Investment Officer who is related within thesecond degree by affinity or consanguinity to an individual seeking to sell an investment to the City of La Porte shall file a statement disclosing that relationship. A statement required under subsection 2256.005(i) of the Actmust be filed with the TexasEthics Commission and the governing body of the City of La Porte. TRAININGInvestment Officers shall attend 10 hours ofinvestment training within 12 months after taking office or assuming duties, and 10 hours every succeeding two yearsthat begins on the st first day of the fiscal year, which is October 1, and consists of the two consecutive fiscal years after that date. The investments training shall be provided from an independent source approved by the Fiscal Affairs Committeeto insure the quality and capability of investment management in . compliance with the ActFor thepurposes of this policy, an "independent source" is defined as a professional organization, an institute of higher learning or any other sponsor other than a Business Organization with whom the City may engage in investment transactions. Training shall be in accordance with the Act and shall include education in investment controls, security risks, strategy risks, market risks,diversification of investment portfolio,and compliance with statutes governing the investment of public funds. REPORTING V. Investment reports shall be prepared quarterly and be signed and submitted by the Investment Officers, in a timely manner. These reports will be submitted to the City Manager and City Council. This report shall describe in detail the investment position of the City, disclose the market value and book value of each fund group as well as each separate investment, and state the maturity date of each security and accrued interest for the reporting period. The report shall 3 include all information as required by Section 2256.023 of the Act. It must also express compliance of the portfolio to the investment strategy contained in the City’s Investment Policy andthe Act. MONITORINGThe market price of each investment shall be obtained monthly from a source such as the Wall Street Journal newspaper,the City’s custodial bank,a reputable brokerage firm or security pricing service and reported on the investment reports.Investments with minimum rating requirements will be monitored for rate changes and liquidation of such investments will be determined at such time. Monitoring credit ratings –The Investment Officer shall monitor, on no less than a monthly basis, the credit rating on all authorized investments in the portfolio based upon independent information from a nationally recognized rating agency. If any security falls below the minimum rating required by Policy, the Investment Officer shall notify the City Manager of the loss of rating, and liquidate the investment within one week. Monitoring FDIC Status for Mergers and Acquisitions –The Investment Officer shall monitor, on no less than a weekly basis, the status and ownership of all banks issuing brokered CDs owned by the City based upon information from the FDIC. If any bank has been acquired or merged with another bank in which brokered CDs are owned, the Investment Officer or Advisor shall immediately liquidate any brokered CD which places the City above the FDIC insurance level. INVESTMENTS VI. ACTIVE PORTFOLIO MANAGEMENTThe City intends to pursue active versus passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. AUTHORIZED INVESTMENTSThe following are authorized investments for the City andall are authorized and further defined by the Act. Only those investments listed in this section are authorized. A.Obligations, including letters of credit, of the United States or its agencies and instrumentalities;direct obligations of this state or its agencies and instrumentalities;other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United Statesor their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States; andobligations of states, agencies,counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent.(Section 2256.009 (a)of the Act) The following are not authorized investments under Section2256.009 (b)of the Act: obligations whose payment represents the coupon payment on the outstanding principal balance of the underlying mortgage-backed security collateral and pays not principal (Interest only bonded); obligations whose payment represents the principal stream of cash from the underlying mortgage-backed security collateral and pays no interest (Principal only bonds); 4 collateralized mortgage obligations that have a final stated maturity date of greater than10 years; and collateralized mortgage obligations, the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. B.Fully collateralized certificatesof deposit issued by a depository institution or an approved broker that has its main office or branch office in Texas, selected from a list adopted by the City,andguaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;secured by obligations authorized by this subchapter, or secured in any other manner and amount provided by law for deposits of the City.(Section 2256.010of the Act) C.FDIC insured, brokered certificates of deposit securities from a bank in any USstate, delivered versus payment to the City safekeeping agent, not to exceed one year to maturity. Before purchase, the Investment Officer must verify the FDIC status of the bank on www.fdic.govto assure that the bank is FDIC insured. D.AAA-rated, or an equivalent rating, no-load money market mutual fundsregistered with and regulated by the Securities and Exchange Commission;havinga dollar-weighted average stated maturity of 90 days or fewer; andincludes in its investment objectives the maintenance of a stable net asset value of $1 for each share.(Section 2256.014of the Act)The Fund must provide the Citywith a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1et seq.); The Cityis not authorized by Section 2256.014 (c)of the Actto: invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves in other funds held for debt service, in mutual funds described inthe Act(Section 2256.014); invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in the Act (Section 2256.014);or invest its funds or funds under its control, including bond proceeds and reservesand other funds held for debt service, in any one mutual fund described in the Act (Section 2256.014)in an amount that exceeds 10 percent of the total assets of the mutual fund. E.AAA-rated, or an equivalent rating by at least one nationally recognized rating service, constant dollar, investment poolsas authorized by the City Council and as further defined by the Act, which invests in eligible securities as authorized by Section 2256.016 of the Act. EXISTING INVESTMENTSThe Investment Officer is not required to liquidate investments that were authorized investments at the time of purchase. Any investments currently held that do not meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. An investment that requires aminimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating. An entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating.If the investment cannot be liquidated because of material adverse change in the value since the time of purchase, and holding the investment to maturity does not negatively affect disbursements or cash flow, a recommendation of holding said investment to maturity is acceptable. 5 MAXIMUM MATURITIESThe maximum stated maturity, from the date of purchase, for any individual investment may not exceed 5 years and the maximum dollar-weighted average maturity for the pooled fund group (investment portfolio) may not exceed 2 years. DIVERSIFICATIONIt is the policy of the City to diversify its investment portfolios. Assets held in the pooled investment portfolio shall be diversified to eliminate the risk of loss resulting from over-concentration of assets in a specific maturity, specific issuer or specific class of securities. Diversification strategies shall be determined and revised periodically by the Fiscal Affairs Committee. FINANCIAL INSTRUMENTSMaximum allowable percentages of the total portfolio for investments are stated as follows: Investment TypeMaximum Limit 1.Investment Pools100% 2.Money Market Accounts10% 3.Certificates of Deposit60% 4.U.S. Government Securities80% 5.U.S.Agency Securities80% SELECTION OF FINANCIAL INSTITUTIONS AND BROKER DEALERS VII. SELECTION OF FINANCIAL INSTITUTIONSDepositories shall be selected through the City's banking services procurement process, which shall include a formal request for proposal (RFP) issued every five(5) years. In selecting depositories, the servicesavailable, service costs, and creditworthiness of institutions shall be considered, and the Director of Finance shall conduct a comprehensive review of prospective depositories’credit characteristics and financial history. The depository contract will provide for collateral if balance exceeds FDIC Insurance amounts. The City shall select financial institutions from which the City may purchase certificates of deposit in accordance with the Act and this policy and will have a written depository agreement with the selected institution,which was approved by resolution of the Bank’s Board if collateral is required.The Investment Officer shall monitor the fiscal condition of financial institutions where certificates of deposit are held. AUTHORIZED FINANCIAL BROKER/DEALERS AND INSTITUTIONSThe Investment Officer shall maintain a list of broker/dealers and financial institutions authorized to provide investment services. These may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must submit: audited financial statements, proof of National Association of Security Dealers certification, and proof of state registration. Before engaging in investment transactions with a financial institutions or broker/dealers, the Investment Officershall havereceived, from a Qualified Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's account with that firm has(1) received and reviewed the investment policy of the City; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the organization that are not authorized by the City’s investment policy, except to the extent that this 6 authorization is dependent on an analysis of the makeup of the City’s entire portfolio or requires an interpretation of subjective investment standards.Investment Officersof the Citymay not acquire or otherwise obtainany authorized investment described in the investment policy from a person who has not delivered a signed Certification Form. The Fiscal Affairs Committee shall at least annually review, revise, and adopt a list of qualified broker/dealersand other financial institutions that are authorized to engage in investment transactions with the City. (Exhibit A) COMPETITIVE BIDDINGAll investmenttransactions must be competitively transacted and executed with broker/dealers or financial institutions that have been authorized by the City. The City will obtain at least three competitive offers. Exception: New issues will not be required to be competitively transacted as all broker/dealers would show the same price and yield. COLLATERAL VIII. COLLATERALIZATION OF PUBLIC DEPOSITSCollateralization requirements are governed by the Texas Government Code Chapter 2257 (Public Funds Collateral Act). All bank deposits, certificates of deposit, and repurchase agreements shall be secured by pledged collateral. In order to anticipate market changes and provide a level of security for all funds, the required minimum collateral level will be a market value equal to noless than 102% of the deposits.Collateral levels should be monitored andmaintained by the financial institution. Repurchase agreements shall be documented by specific agreement noting the collateral pledged in each agreementand should be monitored daily. Collateral shall be reviewed monthly to assure the market value of the securities pledged equals or exceeds the related bank balances. Collateral shall always be held in the City’s name by an independent third party with whom the City of La Porte has a current custodial agreement. Evidence of the pledged collateral shall be maintained by a written agreement. A safekeeping receiptmust be supplied to the City of La Porte for any transaction involving sales/purchases/maturities of securities and/or underlying collateral, which the City of La Porte will retain. The right of collateral substitution is granted provided the substitution has prior approval of the City and is followed by the delivery of an original safekeeping receipt to the City, and replacement collateral is received prior to the release of original collateral. COLLATERAL DEFINEDThe City shall accept only the following securities as collateral: A.FDIC insurance coverage; B.United States Treasuries and Agencies; C.Obligations, including letters of credit, of the United States or its agencies and instrumentalities. D.Other securities as approved by the Fiscal Affairs Committee. SUBJECT TO AUDITAll collateral shall be subject to inspection and audit by the Director of Finance or the City's independent auditors. SAFEKEEPING AND CUSTODY IX. SAFEKEEPING AGREEMENTAll securities owned by the City shall be held in the City’s designated third party safekeeping. The third party custodian shall be required to issue safekeeping receipts to the City listing each specific security, description, maturity, cusip number 7 yield and/or coupon, market valueand other pertinent information. Each safekeeping receipt shall clearly indicate that the instrument is held for the City of La Porte. All safekeeping arrangements shall be documented by the Investment Officer. DELIVERY VERSUS PAYMENTAll investment transactionsshall be executedon a delivery versus paymentbasis. That is, funds shall not be wired or paid until verification has been made that the collateral was received by the Trustee. The collateral shall be held in the name of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. MANAGEMENT AND INTERNAL CONTROLS X. The Director of Finance shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officersof the City. Controls and managerial emphasis deemed most important that shall be employed where practical are: A.Control of collusion B.Separation of duties C.Separation of transaction authority from accounting and record keeping D.Custodian safekeeping receipts records management E.Avoidance of physical delivery securities F.Clear delegation of authorityto subordinate staff members G.Documentation on investment bidding events H.Written confirmation of transactionsfor investments and wire transfers I.Reconcilement and comparisons of security receipts with the investment subsidiary records J.Compliance with investment policies K.Accurate and timely reports L.Validation of investment maturity decisions with supporting cash flow data M.Adequate training and development of Investment Officers O.Review of financial condition of all brokers, dealers and financial institutions P.Staying informed about market conditions, changes, and trends that require adjustments in investment strategies Q. Monitor credit ratings R. Monitor FDIC status for mergers and acquisitions for brokered CD’s COMPLIANCE AUDITTheCity shall perform, in conjunction with its annual financial audit, a compliance audit of management controls on investments and adherence to the entity's established investment policies. The audit shall include a formal review of the quarterly investmentreports by an independent auditor and the results reported to the governing body by the independent auditor. Also, the governing body shall review its investment policy and investment strategy not less than annually and adopt a written instrument by rule,order, ordinance, or resolution stating that it has reviewed the investment policy and strategy, and recorded any changes made to them. 8 Exhibit A City of La Porte Approved List of Brokers/Dealers and Investment Pools Brokers/Dealers Coastal Securities Wells Fargo Amegy Bank Investment Pools TexPool LOGIC Investment Pool Exhibit B TEXAS PUBLIC FUNDS INVESTMENT ACTCERTIFICATION FORM As required by Texas Government Code 2256.005 (k-l) CITY OF LA PORTE, TEXAS This certification is executed on behalf of the City of La Porte, Texas(the Investor) and ___________________________ (the Seller) pursuant to the Public Funds Investment Act, Chapter 2256, Government Code, Texas Codes Annotated (the Act) in connection with investment transactions conducted between the Investor and Dealer. The Undersigned Qualified Representative ofthe Sellerhereby certifies on behalf of the Sellerthat: 1.The Qualified Representative is duly authorized to execute this Certification on behalf of the Seller, and 2.The Qualified Representative has received and reviewed the Investment Policy furnished by the Investor, and 3.The Sellerhas implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Sellerand the Investor that are not authorized by the entity’s investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity’s entire portfolio or requires an interpretation of subjective investment standards. Qualified Representative ________________________________ Signature ________________________________ Name(Printed): ________________________________ Title: ________________________________ Date: Exhibit C City of La Porte, Texas Investment Strategy Statement The City of La Porte, Texas (the "City") will strive to administer and invest its pooled funds at the highest investment return possible while always taking into account the primary goals of preservation of principal and liquidity of funds invested consistent with the City's investment policy. The City's funds, which are pooled together and constitute the investment portfolio, include all financial assets of all funds managed by the City, including but not limited to receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and funds received by the City where the City performs a custodial function. The City will never invest its funds in a security that is deemed unsuitable to the financial requirements of the City. Maturities will be staggered in a manner that meets the cash flow needs of the City. The primary investment objective is the preservation and safety of principal. Each investment transaction shallseek first to ensure that principal losses are avoided, whether they are from security defaults or erosion of market value. The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. The City shall always maintain a highly diversified investment portfolio in order to reduce the amount of credit and market risk exposed to the City's portfolio. After first considering safety and liquidity, the City's investment portfolio shall be designed with the objective of regularly exceeding the average rate of return on U.S. Treasury Bills at a maturity level comparable to the City’s weighted average maturity in days.The City shall seek to augment returns above this threshold consistent with risk limitations identified in the City's investment policy and prudent investment principles. REQUEST FOR FISCAL AFFAIRS COMMITTEE AGENDA ITEMREQUEST FOR FISCAL AFFAIRS COMMITTEE AGENDA ITEM October 27, 2014October 27, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A M. Dolby M. Dolby Source of Funds:Source of Funds: Requested By:Requested By: N/A N/A Finance Finance Account Number:Account Number: Department: N/A N/A Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: N/A N/A Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. LGC 271.905 and LGC 271.90511. LGC 271.905 and LGC 271.9051 2. Local Bidder Preference Policy2. Local Bidder Preference Policy 3. Local Bidder Preference Applications3. Local Bidder Preference Applications SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS At the July 28, 2014 Fiscal Affairs meeting, staff was asked about the City allowing for consideration of the At the July 28, 2014 Fiscal Affairs meeting, staff was asked about the City allowing for consideration of the location of a bidderlocation of a bidders principal place of business in the award of competitively bid goods and services. Sections s principal place of business in the award of competitively bid goods and services. Sections 271.905 and 271.9051 of the Texas Local Government Code that is attached, would allow a municipality to have 271.905 and 271.9051 of the Texas Local Government Code that is attached, would allow a municipality to have local bidders preference policy.s preference policy. The bidder preference will allow selection of:The bidder preference will allow selection of: (1) Local vendors who are within 3% of the lowest bid price for all other bids excluding construction and (1) Local vendors who are within 3% of the lowest bid price for all other bids excluding construction and services, greater than $500,000.services, greater than $500,000. (2) Local vendors who are within 5% percent of the lowest bid price for all other bids including services, greater (2) Local vendors who are within 5% percent of the lowest bid price for all other bids including services, greater than $50,000 or less than $500,000.than $50,000 or less than $500,000. (3) Local vendors who are within 5% percent of the lowest bid price for construction bids greater than $50,000 (3) Local vendors who are within 5% percent of the lowest bid price for construction bids greater than $50,000 but less than $100,000.but less than $100,000. Council must make the determination that the local bid would benefit the city economically; therefore, staff is Council must make the determination that the local bid would benefit the city economically; therefore, staff is recommending the policy only apply to expenditures over $50,000. This policy does not apply to purchases that recommending the policy only apply to expenditures over $50,000. This policy does not apply to purchases that are; sole source, emergency, federally are; sole source, emergency, federally funded, cooperative contract or interfunded, cooperative contract or inter--local agreements.local agreements. Based on the bid awards for FY 2014, if there would have been a local vendor bidding that met the criteria above Based on the bid awards for FY 2014, if there would have been a local vendor bidding that met the criteria above on each bid, the City would have paid $153,587 more for goods and services. There were no local vendors meeting on each bid, the City would have paid $153,587 more for goods and services. There were no local vendors meeting the criteria above that bid in FY 2014.the criteria above that bid in FY 2014. Attached for your review is a draft copy of a local bidder preference policy and local bidder preference Attached for your review is a draft copy of a local bidder preference policy and local bidder preference application. Action Required by the Fiscal Affairs Committee:Action Required by the Fiscal Affairs Committee: Receive and review Local Bidder Preference Policy and Local Bidder Preference Application.Receive and review Local Bidder Preference Policy and Local Bidder Preference Application. Approved for Fiscal Affairs Committee AgendaApproved for Fiscal Affairs Committee Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate Sec. 271.905. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF BUSINESS. (a) In this section, "local government" means a municipality, a county, or another political subdivision authorized under this title to purchase real property or personal property that is not affixed to real property. The term does not include a school district. (b) In purchasing under this title any real property or personal property that is not affixed to real property, if a local government receives one or more bids from a bidder whose principal place of business is in the local government and whose bid is within three percent of the lowest bid price received by the local government from a bidder who is not a resident of the local government, the local government may enter into a contract with: (1) the lowest bidder; or (2) the bidder whose principal place of business is in the local government if the governing body of the local government determines, in writing, that the local bidder offers the local government the best combination of contract price and additional economic development opportunities for the local government created by the contract award, including the employment of residents of the local government and increased tax revenues to the local government. (c)This section does not prohibit a local government from rejecting all bids. Added by Acts 1999, 76th Leg., ch. 996, Sec. 1, eff. Aug. 30, 1999. Amended by Acts 2001, 77th Leg., ch. 480, Sec. 1, eff. Sept. 1, 2001. Amended by: Acts 2011, 82nd Leg., R.S., Ch. 513 (H.B. 1869), Sec. 1, eff. June 17, 2011. Sec. 271.9051. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF BUSINESS IN CERTAIN MUNICIPALITIES.(a) This section applies only to a municipality that is authorized under this title to purchase real property or personal property that is not affixed to real property. (b) In purchasing under this title any real property, personal property that is not affixed to real property, or services, if a municipality receives one or more competitive sealed bids from a bidder whose principal place of business is in the municipality and whose bid is within five percent of the lowest bid price received by the municipality from a bidder who is not a resident of the municipality, the municipality may enter into a contract for construction services in an amount of less than $100,000 or a contract for other purchases in an amount of less than $500,000 with: (1) the lowest bidder; or (2) the bidder whose principal place of business is in the municipality if the governing body of the municipality determines, in writing, that the local bidder offers the municipality the best combination of contract price and additional economic development opportunities for the municipality created by the contract award, including the employment of residents of the municipality and increased tax revenues to the municipality. (c) This section does not prohibit a municipality from rejecting all bids. (d) This section does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153. CITY OF LA PORTE, TEXAS LOCAL BIDDER PREFERENCEPOLICY Purpose: The purpose of the policy is to comply with Sections 271.905 and 271.9051 of the Texas Local Government Code allowing for “Consideration ofBidder’s Principal Place of Business” in the award of competitively bid contracts. Procedure: 1.Scope a.This policy applies to the purchase of real property, personal property that is not affixed to real property, or services (including construction services) through Competitive Bid. i.Lowest Responsible Bid-Price is the single determinant factor when awarding a bid to a responsible bidder. ii.Best Vale -Price is only one of a number of determining factors that are weighted for evaluation purposes (Texas Local Government Code 252.043) 2.Criteria a.Lowest Responsible Bids- i.A five percent (5%) price differential will apply to construction bids greater than $50,000 but less than $100,000 and all other bids, including services, greater than $50,000 but less than $500,000. Excludes telecommunication and information services. ii.A three percent (3%) price differential will apply to bids, excluding construction and services, greater than $500,000. ThechartbelowisasummaryofthecriteriaforLowestResponsibleBids: LGC271.9051 LGC271.905 5%pricedifferential3%pricedifferential Constructionbidsgreater than $50,000 All other bids, excludingconstruction and but lessthan$100,000 services, greater than $500,000. Allotherbids,includingservices,greater than $50,000 or less than$500,000 b.Best Value Bids- i.Price is the only one of a number of determining factors that are weighted for evaluation purposes as provided in Texas Local Government Code 252.043. As a result, and additional weighted factor will be added to all such bidders meeting local preference criteria. The appropriate weight, either 5% or 3%, will be consistent with the criteria outlined in the chart above c. Local Bidder Preference Consideration Application (Attachment)- i.A new and complete application must be submitted and each competitive bid by the due date. ii.This application serves to ensure the qualifications of a bidder as a local and serves as the basis for meeting the statures requirement that the governing body in writing, that a bidder is a local bidder. d. Bidders seeking local preference must meet all specifications and requirements contained in the bid documents. 3.Exceptions a.This policy does not apply to purchases obtained through a Request for Qualifications (RFQ), Request forProposals (RFP), bids involving Federal funds, Cooperative Purchases, Emergenciesor Inter-local Agreements. 4.The City Council may award a competitively bid contract to the lowest responsible bidder, local bidder consistent with this policy and state law, or reject all bids. CITY OF LA PORTE LOCAL BIDDER PREFERENCEAPPLICATION Sections 271.905 and 271.9051 of the Texas Local Government Code authorize a municipality to consider a vendor’s location in the determination of a bid award if the lowest bid received is from a business outside the municipality and contracting with a local bidder would provide the best combination of price and other economic benefits to the municipality. The City of La Porte, Texashas determined that the allowable preference shall be applied to local vendor’s bids for the purposes of evaluation when requested in writing by local bidder and when determined to be in the best interest of the City to do so. This request form and any supporting documentation must be submitted with bid in order to be considered bythe City of La Porte, Texas. Questions should be addressed to the Purchasing Department at 281-470-5126. Exclusions to the local preference include expenditures of $50,000or less, and thosepurchases which are; sole source, emergency, federally-funded, cooperative contracts, or via inter-local agreement. 1.Location Eligibility: Principal place of business in La Porte, Texas. Principal place of business is defined herein as any business that owns or leases a commercial building within the City limits and uses thebuilding for actual business operations. (a)If yes, identify name of business/DBA, address and business structure: sole proprietorship, partnership, corporation or other. Name of business/DBA:____________________________________________________ Address:_______________________________________________________________ City:__________________________ State:_____________ Zip:___________________ Sole Proprietorship Partnership Corporation Other ______________________________ (b)Name andcity of residence of owner(s) partners/corporate officers as applicable Name: ______________________________________ City:________________________________________ 2.General Business Information: (a)Year business established (La Porte location) _________ (b)Most recent year property valuation (if owned); real and personal property $____________ (c)Is business current on all property and sales taxes at the time of this application?________ (d)Total number of current employees_______ and number of La Porte-resident employees ______ 3.Economic Development benefits resulting from award of this contract: (a)Number of additional jobs created______ or retained for La Porte resident-employees ______ (b)Local subcontractor utilized, if applicable; name, location and contract value for each Name:________________________________ Address:______________________________ Contract Value $________________________ (c)Other economic development benefit deemed pertinent by applicant _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ The undersigned does hereby affirm that the information supplied is true and correct as of the date hereof, under penalty of perjury. City Bid No./Quote for which the local preference is requested:____________________________ ______________________________________________________________________________ (Name ofBidder)(Date) ____________________________________ (Signature) ____________________________________ (PrintName) THE STATE OF TEXAS § § COUNTY OF______________§ Appeared before me the above-named_____________________________, known tome to be the same, and swore that the information provided in response to the foregoing questions are true and correct to the best of his/her knowledge and belief, this ______ day of _________________, 20___. ________________________________ NOTARY PUBLIC, STATE OF TEXAS Printed Name:_____________________ Commission Expires:________________