HomeMy WebLinkAbout08-08-07 Special Called Regular Meeting of Fiscal Affiars Committee
MINUTES OF THE SPECIAL CALLED REGULAR MEETING OF LA PORTE FISCAL AFFAIRS
COMMITTEE
August 8, 2007
1. Call to Order
The meeting was called to order by Chairman Chuck Engelken at 6:15 p.m.
Members of Committee Present: Councilmembers Howard Ebow, Barry Beasley, and Chuck
Engelken.
Members of Committee Absent: Louis Rigby and Tommy Moser.
Members of City Council. City Executive Staff/Controller and City Employees Present:
Interim Director of Finance Michael Dolby, Controller Phyllis Rinehart and Secretary III Susan
Felty.
Others present: Tom Pedersen with Null-Lairson, Robert Belt and Stephanie Harris with
Sanderson, Knox and Belt, Chris Pruitt and Paula Spiegelhauer with Pattillo, Brown and Hill.
2. Committee Interviews with Audit Firms.
The committee interviewed the following audit firms:
1. Null-Lairson
2. Pattillo, Brown and Hill, LLP
3. Sanderson, Knox & Belt
3. Administrative Reports.
Chairman Chuck Engelken advised the committee an ordinance would be added to the
August 13, 2007 City Council Meeting for consideration of an agreement with a firm for
auditing services for a three year period beginning in September.
The next Fiscal Affairs Committee Meeting will be held September 10, 2007 at 5:00 p.m.
4. Committee Comments.
The committee had comments.
5. Adjournment
There being no further business to come before the Committee, the meeting was adjourned
at 8:25 p.m.
Minutes of the La Porte Fiscal Affairs Committee August 8, 2007- Page 2
Respectfully submitted,
YlLcumL~
Sharon Harris, TRMC
Assistant City Secretary
Approved thi& Of#' 2007.
Chairperson Chuck Engelken
~~
"- -
3
City of La Porte, Texas
Quarterly Report of Credit Card Expenditures
Third Quarter FY 2007
Report of Credit Card Expenditures
Quarter Ending June 30, 2007
Payee
Date
Check
Number
CardMember Services
06/29/07
233185
Amount
Cardholder Name/Position
Amount
Debra Feazelle, Municipal Consultants/Advisor 0.00
743.60
John Joerns, Interim City Manager
743.60
Martha Gillett, City Secretary
0.00
Richard Reff, Police Chief
0.00
Total Expenditures
$
743.60
$ 743.60
NOTE: This report reflects all PA YMENTS made during the Third Quarter of FY 2007 (April, May, June 2007)
City of La Porte, Texas
Quarterly Report of Credit Card Expenditures
Third Quarter FY 2007
Cardholder Position: Interim City Manager, John Joerns
Payee
Date
Amount
Expedia Travel
05/31/07
484.60
Texas Municipal League
06/06/07
259.00
Total Quarterly Charges
$
743.60
Expense
Type
Lodging
Best Western Sunset Suites
Registration
Purpose
TCMA Annual Conference
Leading TX Cities: Innovation & Resilience in Action
June 22-24, 2007
John Joerns - San Antonio, TX
TCMA Annual Conference
June 22-24, 2007
John Joerns - San Antonio, TX
Check #
223185
NOTE: This report reflects all PA YMENTS made during the Third Quarter of FY 2007 (April, May, June 2007)
June 30, 2007
This report is in full compliance with the credit card policy as
established by the City of La Porte's Audit Committee.
~.
Mich el Dolby, CPA
Interim Finance Director
4
CITY OF LA PORTE
Interoffice Memorandum
FROM:
Barry Beasley, Councilman
Howard Ebow, Councilman
Chuck Engelken, Councilman
Tommy Moser, Councilman
Louis Rigby, Councilman
John Joerns, Interim City Manager
Michael Dolby, Interim Finance Director V--
Phyllis Rinehart, Controller
TO:
DATE:
SUBJECT:
July 16, 2007
Quarterly Investment Report
RECEIVED
AUG ~ 1 2007
CITY 8ECRETAN"'.
OPFtCe
For the third quarter of the 2007 fiscal year, the City's investment portfolio yield has been between 5.15%
and 5.20%. The average return on the portfolio for the third quarter of the fiscal year was 5.17%, which is
above the average yield of our benchmark, which was 5.03% (see graph below). Our benchmark is the 6-
month T-Bill rate. The current year to date interest earned for the 2007 fiscal year for all funds is $2,055,724
which is approximately $770,000 more than projected at this time.
City \S. Benchmark
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
...,~ ~~ I?~<>' 0"-': +0"'" <:l" ...,$' 4..~ ~'bo<: ~.rt' ~~ ...,~<$
- Portfolio Yield - Benchmark
At June 30th the City's portfolio consisted of 36% in Agency Notes, 42% in Texpool, 17% in TexST AR and
5% in Logic (see pie chart below).
By Investment Type
17%
I . Texpool . TexST AR 0 Logic 0 Agency Notes I
The overnight rate set by the Fed continues to remain stable. The most current overnight rate was set on June
29,2006 at 5.25%. With that said, our main focus is to continue to ladder the portfolio.
At the end of the first quarter, the City's portfolio consisted of 64% of the portfolio maturing overnight (see
graph below). 10% of the City's portfolio matures in one year and 26% of the City's portfolio matures in 12-
24 months.
By Investment Maturity
I · Overnight
.1-12 Months
012-24 Months I
Currently, the 3-month T-Bill is at 4.79%; 2-year, at 4.97%; 5-year, at 4.92%; and, the 20-year is at 5.15%
(see yield curve below).
Yield Curve
6.00%
3.00%
5.00%
4.00%
2.00%
3 mon 6 mon
1 yr
2 yr
5 yr
10 yr
20 yr
Treasury Bills
- 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
~ @ ~ $ $ $ ~ ~ ~ ~ ~
.....~<:5 .....~<:5 .....~~ .....~ .....~ .....~ .....~<:5 .....~<:5 .....~<:5 .....~<:5 .....~<:5
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 30,2007 80.00%
Par Book Market Days to
Value Value Value Maturity
Investment Pools 26.871.101 26.871,101 26,871,101 I
Agencies 14,985,780 14,985,780 14,964,560 277
Total 41,856,88\ 41,856,881 41,835,661 100
Book
Value Percent
1-12 months 26,871,101 64.20%
9-12 months 4,000,289 9.56%
1-2 years 10,985,492 26.25%
Total 41,856,881 100.00%
Pooled Funds
Bond Funds
Portfolio
Yield
5.20%
5.26%
Benchmark
Yield'
4.98%
4.79%
Total
5.23%
Investment Maturity Schedule
as of June 30,2007
Portfolio Performance
for the month of June 2007
Weighted
Average
Maturity
3.18 months
I day
4.89%
2.04 months
'The pooled funds benchmark is based on the average monthly yield of a 6-month Treasury.
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 Earnings
for months ended June 2007
Budget Actual Percent
General 650,000 662,898 101.98%
Enterprise 293,405 264,832 90.26%
Internal Service 164,350 183,015 111.36%
Total 1,107,755 \,110,745 100.27%
Yield Curve
:~~~ jn !
4.00%
3.00%
2.00%
1.00%
0.00%
.
*-1--- n .
3mo
2yr
5yr
6mo
lyr
1__ Apr-07
May-07 ~Jun-071
WAM . Pooled Funds
~
0.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Apr-07
May-07
Jun-07
60.00%
40.00%
20.00%
0.00%
Investment Pools
64,20%
_Jun-07
Agencies
35,80%
...... Jun-06
_ Dee-06
] ~12 months
. "
.
Pooled Funds
Bond Funds
Total
I IJ Portfolio Yield
. Benchmark Yield" I
500.000
400,000
300,000
200.000
\00,000
General
EnteIprise
Internal Service
. Budget
. Actual
% of funds invested in:
Securities & Pools
Bank Depository
Total % of funds invested
Average for June
2007 2006
94.60% 95.67%
5.40% 4.33%
100.00% 100.00%
Operating Account Balance
2.389,455
1,618,701
June 30, 2007
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).
~aJ
5
JPMORGAN CHASE
APRIL
4/6/07 -517/07
Total due on statement
127,321.65
Total to be paid from group
$127,321.65
JPMORGAN CHASE
May
5/8/07 -6/5/07
Total due on statement
April payment not posted
235,321.45
-127.321.65
107,999.80
Total to be paid from group
$107,999.80
JPMORGAN CHASE
June
6/6/07-7/5/07
Total due on statement
April payment not posted
129,602.25
Total to be paid from group
$129,602.25
6
CITY OF LA PORTE PLANNING DEPARTMENT
604 W. Fairmont Parkway, La Porte, TX 77571
www.laportetx.gov
Phone: (281) 471-5020 I Fax (281) 470-5005
o
k r ~rli
VA1~;t' {ift~~ot
ot q~
MEMORANDUM
September 4, 2007
To: John Joerns, Interim City Manag~~L J
From: Wayne J. Sabo, Planning Direcr VI'
SUBJECT: HOME and CnBG Grants.
Habitat for Humanity has expressed interest in acquiring lots from the City of La Porte to build affordable
housing as a participant in the Northside Neighborhood Plan. The targeted sites are (Maps attached as
enclosure I):
P216 HCAD Account Number - 023-177-040-0024
Legal Description - Lots 24, 25, 26, 27 & 28 Block 40 La Porte
Description -114 North Third Street Prope
HCAD Appraised Amount - $23,900 .
HCAD Map Facet #6253A4 5":
Cause #2004-22762
P 219 (1) HCAD Account Number - 024-006-003 -00 19
Legal Description -Lots 19 thru 30 Block 203 La Porte
Description - Pro p e
HCAD Appraised Amount - $84,400
HCAD Map Facet #6253B2 5-
Cause #2005-02538
Added
0.7
Added
0.7
Given that Habitat would be participating in a City sponsored program, they would be eligible for waiver
of development fees per City ordinance.
In a typical HOME or CDBG grant, the City incurs expenses either as a matching requirement or for
leveraging funds. While there is no match for CDBG (we use in-kind cost for leveraging) there is a 25%
match for HOME funding and some funding is needed in the CnBG account to be used as "seed
money" to be paid out as up-front construction costs until reimbursements from Harris County
begin. For example, this past year our HOME grant was $457,300 with a City match of $114,325.00 to
build 5 homes. A recap follows:
Waived permits and fees--
Lots Appraised Value-------
Appraisal F ees----------------
Deed Recording F ees------
Lien Release Fees----------
Liens Waived------------------
Clearing Permit---------------
Total---in kind------------------
$19,427.75 ($3885.55 x 5 lots)
$36,950.00 (5 lots total) (Cash Paid Out)
$ 2,500.00 (Cash Paid Out)
$ 100.00 (Cash Paid Out)
$ 2,500.00 (Cash Paid Out)
$ 10,624.56
$ 20.00
$72,122.31
2
A direct cash contribution to Harris County was $42,202.69. In all, the City paid out
$84,000+ in cash and the remainder of the match in waived fees, liens and permits to cover
the contractual 25% match and Harris County infrastructure inspections. Note that the City,
when acquiring the properties for the grant program, pays either the appraised value or the
taxes owed whichever is the lesser amount.
The lots requested by Habitat are within the Main Street District (P216-Commercial and
Residential Uses) and R-l Single Family Residential (P219-1). Regarding the P216 site, these
lots are being reviewed by Staff for possible use within the Main Street District. The appraised
value and costs plus taxes owed on the lots at the P216 site are $23,900 and $31,748.20
respectively. Lots 19 through 30 at the P219-1 site are appraised at $84,400 with cost plus taxes
set at $40.663.58.
The homes built using HOME grant funding by the City must meet standards as set by Harris
County. To date, these homes have been brick with 2-car garages. The homes built by Habitat
are built to code but offer hardi-plank or similar siding with no garages. The occupants of the
homes built using HUD/HOME grant funding and closed using downpayment assistance have an
affordability period which requires the buyer to remain in the home from 5-10 years depending
on the amount of downpayment assistance used. Typically, Habitat homes have no such
requirement.
Three options may be considered:
. City retains the lots for future HOME grant requests.
. City pays the taxes and costs and donates the lots to Habitat and waives development
fees as part of the affordable housing project.
. City offers the lots to Habitat at cost and waives development fees as part of the
affordable housings project.
N
W.",
. E
.
S