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Home My WebLink About04-24-06 Regular Meeting of Fiscal Affairs Committee Minutes 2 MINUTES OF THE LA PORTE FISCAL AFFAIRS COMMITTEE April 24, 2006 1. Call to Order The meeting was called to order by Councilman Chuck Engelken at 5:10 p.m. Members of Committee Present: Councilmembers Barry Beasley, Tommy Moser, Louis Rigby, Howard Ebow and Chuck Engelken. Barry Beasley arrived at 5:16 p.m. Members of Committee Absent: Cynthia Alexander. Members of City Executive Staff and City Employees Present: City Manager Debra Feazelle, Assistant Finance Director Michael Dolby, City Secretary Martha Gillett, Phyllis Rinehart, Assistant City Manager Cynthia Alexander, Planning Director Wayne Sabo and Assistant City Manager John Joerns. Other citizens: . 2. Consider approval of Minutes of Regular Meeting of La Porte Fiscal Affairs Committee Minutes held on January 23, 2006. Motion was made by Committee Member Moser to approve the minutes as presented. A second by Committee Member Ebow. The motion carried. Ayes: Beasley, Engelken, Moser, Rigby and Ebow Nays: None Abstain: None 3. Kathy Powell presented to Councili approval or rejection of Tax Resale Bid. The committee voted to reject P-006 and P-050 Motion was made by Committee Member Moser to amend P-140 with additional $100.00 presented. A second by Committee Member Ebow. The motion carried. Ayes: Beasley, Engelken, Moser, Rigby and Ebow Nays: None Abstain: None 4. Assistant Finance Director Michael Dolby presented quartley investment r~ports for review. " 5. Assistant Finance Director Michael Dolby presented the credit card expenditure report. Minutes of the La Porte Audit Committee April 24, 2006 - Page 2 6. The committee received concerns from Mayor Porter regarding the Fiscal Affairs Issues. Legal requests and requests for information from staff members- all should go through City Manager's Office. Mayor is requesting policy to avoid duplications to allow City Manager to be aware of staff time. Consensus of Group: workshop this item at a future council meeting. 7. Administrative Reports. Staff had the following administrative items to report. Cynthia Alexander was not present due to illness. Michael Dolby advised the kick-off budget meeting will be Thursday, April 27, 2006 at 3:00 p.m. 8. Committee Comments The committee had the following comments Howard Ebow: was not aware of a limit on phone usage, requested total of monthly bills, never told what number of minutes were. Requested information on city issued phones. 10. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 5:40 p.m. Motion was made by Committee Member Howard Ebow to adjourn. A second by Committee Member Barry Beasley. The motion carried. Respectfully submitted, Martha A. Gillett, TRMC, CMC City Secretary Approved this 10th day of July, 2006. Chairperson Chuck Engelken ~~ CITY OF LA PORTE Interoffice Memorandum TO: Barry Beasley, Councilman Howard Ebow, Councilman Chuck Engelken, Councilman Tommy Moser, Councilman Louis Rigby, Councilman Debra Brooks Feazelle, City Manager Cynthia Alexander, Assistant City Manage&~ Phyllis Rinehart, Controller FROM: DATE: SUBJECT: July 13,2006 Quarterly Investment Report For the third quarter of the 2006 fiscal year, the City's investment portfolio yield has been between 4.23% and 4.51 %. The average return on the portfolio for the third quarter of the fiscal year was 4.36%, which is still below the average yield of our benchmark, which was 4.97% (see graph below). Our benchmark is the 6- month T-Bill rate. The current year to date interest earned for the 2006 fiscal year is $1,006,029, which is approximately $300,000 more than projected at this time. City vs. Benchmark 5.00010 4.50% 4.00% 3.50% 3.00010 2.50% 2.00% 1.50% 1.00% ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 6! ~ ~ ~ ~ ~ ~ K ~ ~' ~ \V \V ~~'() S'lJ c::f ~o <;)'lJ \~ 4,'lJ ~O' ~ ~'r1' \V - Portfolio Yield - Benchmark At June 3051 the City's portfolio consisted of 55% in Agency Notes, 22% in Texpool, 18% in TexSTAR and 5% in Logic (see pie chart below). By Investment Type 5% I_ Texpool - TexSTAR 0 Logic 0 Agency Note, 1 The overnight rate set by the Fed continues to climb. The most current overnight rate was set on June 29th at 5.25. With that said, our main focus is to continue to ladder the portfolio. At the end of the third quarter, the City's portfolio consisted of 46% of the portfolio maturing overnight (see graph below). 13% of the City's portfolio matures in one year, 30% of the City's portfolio matures in 12-24 months and 11 % of the portfolio matures in over 2 years. By Investment Maturity 11% 46% 30% 13% . Overnight o 12-24 Months .1-12 Months DOver 24 Months Currently, the 3-month T-Bill is at 4.83%; 2 year, at 5.04%; 5 year, at 5.03%; and, the 20-year is at 5.34% (see yield curve below). Yield Curve 5.50% 11- 4.50% 3.50% 2.50% 1.50% 0.50% 0 5 10 15 20 - 3 months ago - current The overnight rate is currently at 5.25%. We will continue to focus on laddering the portfolio to maintain a constant cash flow and a liquid position. 2 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2 YearT-Note o % ~ ~ ~ 0 ~ ~ ~ ~ 0 q; q, ~o, ~o, ~o, ~o, ~o, \:S \:::) ~ ~ ,\v<$ ,\v<$ '\~ '\~ '\~ '\~ '\~ ,\v<$ ,\v<$ ,\v~ ,\v~ 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, 2006 60.00% Par Book Market Days to Value Value Value Maturity Investment Pools 17,171,795 17,171,795 17,171,795 I Agencies 20,014,514 20,014,514 19,872,500 325 Total 37,186,309 37,186,309 37,044,295 176 Book Value Percent 1-12 months 17,171,795 46.18% 9-12 months 4,999,242 13.44% 1-2 years 11,003,752 29.59% 2 or more years 4,011,520 10.79% Total 37,186,309 100.00% Pooled Funds Bond Funds Portfulio Yield 4.51% 4.99% Benchmark Yield' 4.79% 4.63% Total 4.75% 40.00% 20.00% 0.00% Investment Pools 13!ii,: 46.18% _Jun-06 _Dee-05 .......Jun-05 Investment Maturity Scbedule as of June 30, 2006 Portfolio Performance for tbe montb of June 2006 Weighted Average Maturity 5.35 months I day 4.71% 4.0 I months 'The pooled funds benchmark is based on the average monthly yield of a 6-month Treaswy. The bond funds benchmark yield is based on the average monthly yield of a 3-month Treaswy. The total is based on weighted average monthly benchmark yields. Pooled FlUlds Bond FlUlds Total I 0 Portfolio Yield . Benchmark Yield' I Portfolio Earnings for montbs ended June 30, 2006 Budget Actual Percent General 329,370 413,262 125.47% Enterprise 54,690 43,823 80.13% Internal Service 88,060 99,532 113.03% Total 472,120 556,617 117.90% 300,000 250,000 200,000 150,000 100.000 50,000 Yield Curve 5.00%~ . !~----- --~ 1.00% -- 0.50% - 0.00% , 3mo 6mo ~~4 1yr 2yr 5yr I--APr-06 May-Oe .......Jun-Oel General Enterprise Internal Service . Budget . Actual WAM . Pooled Funds 10 9 8 7 6 5 4 3 2 1 ---------i I Average for June 2006 2005 92.95% 97.28% 7.05% 2.72% 100.00% 100.00% % of funds invested in: Securities & Pools Bank Depository Total % of funds invested ---; Operating Account Balance 1,618,701 973,905 Apr-06 May-06 J un-06 June 30, 2006 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). ~G2~:4 Phy s Rinehart Controller 4 Exhibit B BROKER/DEALER CERTIFICATION 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, TX (the Investor) and Wells Fargo Brokerage ServicesftC(the Dealer) 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 of the Dealer hereby certifies on behalf of the Dealer that: 1. The Dealer Qualified Representative IS duly authorized to execute this Certification on behalf of the Dealer, and 2. The Dealer Qualified Representative has received and reviewed the Investment Policy furnished by the Investor, and 3. The Dealer has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Dealer and 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. Dealer Qualified Representative ~r Teresa M. Yan~ey Name (Printed): Regional Sales Manager Title: July 14, 2006 Date: 5 City of La Porte, Texas Quarterly Report of Credit Card Expenditures Third Quarter FY 2006 Cardholder Position: City Manager Payee Date Amount Holiday Day Inn Express 04/08/06 95.60 Pappadeaux Seafood 04/19/06 66.67 Applebee's 04/24/06 56.51 Monument Inn 05/01/06 90.00 Texas Municipal League 05/03/06 225.00 ICMA Internet 05/19/06 913.00 Aquarium OS/26/06 132.25 Expense Type Purpose Lodging Texas City Manager Association Meeting April 6, 2006 Debra Feazelle - Longview, TX Lunch Employee of the Year April 19, 2006 D. Feazelle, P. Lee, W. Sabo & W. Sabo Seabrook, TX Lunch Employee of the Quarter April 24, 2006 D. Feazelle, J. Joerns, R. Nolen & Rachel Gomez Pasadena, TX Lunch Manager of the Year May 1, 2006 D. Feazelle, J. Joerns, M. Dolby & Kathy Powell Deer Park, TX Registration TML Annual Conference Training Your Team to Hit for the Cycle June 1-4, 2006 Debra Feazelle - Corpus Christi, TX Membership Membership Renewal ICMA Debra Feazelle Lunch Employee of the Quarter May 26,2006 D. Feazelle, J. Joerns, C. Alexander, Gustavo L. Allen & D. Pennell- Kemah, TX City of La Porte, Texas Quarterly Report of Credit Card Expenditures Third Quarter FY 2006 Cardholder Position: City Manager Payee Date Amount The Innovations Groups OS/27/06 10.75 Performance Plus 06/04/06 179.70 ICMA Internet 06/16/06 660.00 Total Quarterly Charges $ 4,778.79 Expense Type Purpose Book Educational Material Unmasking Admin Evil May 27. 2006 Debra Feazelle Books Training Material for Executive Staff June 4, 2006 Debra Feazelle Registration ICMA Annual Conference September 10-13, 2006 Debra Feazelle - San Antonio, TX NOTE: This report reflects all PA YMENTS made during the Third Quarter of FY 2006 (April, May, June 2006) Check # 225161 225718 226314 226934 City of La Porte, Texas Quarterly Report of Credit Card Expenditures Third Quarter FY 2006 Cardholder Position: Assistant City Manager, John Joerns Payee Date Amount Texas Municipal League 05/03/06 313.00 Southwest Airlines OS/25/06 242.10 Omni Hotels 06/04/06 410.55 Total Quarterly Charges $ 965.65 Expense Type Purpose Registration TML Annual Conference Training Your Team to Hit for the Cycle June 1-4, 2006 John Joerns - Corpus Christi, TX Airfare TML Annual Conference Training Your Team to Hit for the Cycle June 1-4, 2006 John Joerns - Corpus Christi, TX Lodging TML Annual Conference Training Your Team to Hit for the Cycle June 1-3, 2006 John Joerns - Corpus Christi, TX NOTE: This report reflects all PA YMENTS made during the Third Quarter of FY 2006 (April, May, June 2006) Check # 226314 226934 City of La Porte, Texas Quarterly Report of Credit Card Expenditures Third Quarter FY 2006 Cardholder Position: Assistant City Manager, Cynthia Alexander Payee Date Southwest Airlines 03/01/06 Double Tree Hotel 03/03/06 Texas Municipal League 03/04/06 Texas Municipal League 03/11/03 Southwest Airlines 03/15/06 Renaissance Hotels 04/03/06 Dollar-Rental-Car 04/06/06 Continental Airlines 05/04/06 Amount 234.10 125.35 225.00 45.00 134.10 132.25 11 .45 100.00 Expense Type Purpose Airfare TML Board Meeting March 2-3, 2006 Cynthia Alexander - Austin, TX Lodging TML Board Meeting March 2-3, 2006 Cynthia Alexander - Austin, TX Registration GFOAT Spring Institute April 2-4, 2006 Cynthia Alexander - Austin, TX Luncheon GFOA T Spring Institute April 2-4, 2006 Prayer & Women's Luncheon Cynthia Alexander - Austin, TX Airfare GFOA T Spring Institute April 2-4, 2006 Cynthia Alexander - Austin, TX Lodging GFOA T Spring Institute April 2-4, 2006 Cynthia Alexander - Austin, TX Airport Parking GFOA T Spring Institute April 2-4, 2006 Cynthia Alexander - Austin, TX Change Flight 100th Governmanet Finance Officers Assoc May 4, 2006 Cynthia Alexander - Montreal, Canada City of La Porte, Texas Quarterly Report of Credit Card Expenditures Third Quarter FY 2006 Cardholder Position: Assistant City Manager, Cynthia Alexander Payee Date Delta Centreville Hotel 05/10/06 Southwest Airlines 05/12/06 Dollar -Rental-Car 05/19/06 Jeanie Ann's Tearoom OS/23/06 Southwest Airlines 06/02/06 Amerisuites 06/16/06 Total Quarterly Charges Amount 1,167.56 204.10 5.73 22.01 229.60 157.07 $ 2,793.32 Expense Type Lodging Purpose 100th Governmanet Finance Officers Assoc A Century of Progress in Gov't Finance May 4-8, 2006 Cynthia Alexander - Montreal, Canada Airfare TML Board Meeting May 19, 2006 Cynthia Alexander - Austin, TX Airport Parking TML Board Meeting May 19, 2006 Cynthia Alexander - Austin, TX Luncheon Goose Creek Tax Office Industrial District Updates May 23, 2006 Cynthia Alexander & Charlene Piggott La Porte, TX Airfare TML Board Meeting June 9, 2006 Cynthia Alexander - Dallas, TX Lodging TML Board Meeting June 15-16,2006 Cynthia Alexander - Hurst, TX Check # 225161 225718 226314 226934 NOTE: This report reflects all PA YMENTS made during the Third Quarter of FY 2006 (April, May, June 2006) June 30, 2006 This report is in full compliance with the credit card policy as established by the City of La Porte's Audit Committee. Mic el Doloy, CPA As stant Finance Director