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Home My WebLink About09-10-07 Special Called Regular Meeting of La Porte Fiscal Affairs Committee 2 MINUTES OF THE SPECIAL CALLED REGULAR MEETING OF LA PORTE FISCAL AFFAIRS COMMITTEE September 10, 2007 1. Call to Order The meeting was called to order by Chairman Chuck Engelken at 5:00 p.m. Members of Committee Present: Councilmembers, Barry Beasley, Chuck Engelken, Louis Rigby and Tommy Moser (arrived at 5:10 p.m.). Members of Committee Absent: Howard Ebow Members of City Council. City Executive Staff/Controller and City Employees Present: Interim City Manager John Joerns, Controller Phyllis Rinehart and Assistant City Secretary Sharon Harris Others present: None 2. Consider approval of Minutes of Special Called Regular Meetings of Fiscal Affairs Committee held May 29,2007 and August 8,2007. Motion was made by Committee Member Beasley to approve the minutes as presented. A second by Committee Member Rigby. The motion carried 3. Controller Phyllis Rinehart presented the third quarter credit card expenditure report. 4. Controller Phyllis Rinehart presented quarterly investment reports and provided an overview. 5. Controller Phyllis Rinehart presented third quarter purchasing card expenditure report. The committee requested staff continue to provide the format of the purchasing card expenditures presented at this meeting. The format clarified purchasing card expenditures. 6. Administrative Reports. Interim City Manager John Joerns discussed a request from Habitat for Humanity to acquire lots from the City of La Porte to build affordable housing as participants in the Northside Neighborhood Plan. Mr. Joerns advised the committee the city is working with Habitat for Humanity on their request. 7. Committee Comments. The committee had comments. Minutes of the La Porte Fiscal Affairs Committee September 10,2007- Page 2 8. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 5:23p.m. Respec~ar#4 Martha Gillett, TRMC, CMC City Secretary Approved this l'iday of /J~v. 2007. Chairperson Chuck Engelken tkJ~ 3 City of La Porte, Texas Quarterly Report of Credit Card Expenditures Fourth Quarter FY 2007 Report of Credit Card Expenditures Quarter Ending September 30, 2007 $ 118.32 NOTE: This report reflects all PA YMENTS made during the Fourth Quarter of FY 2007 (July, August, September 2007) City of La Porte, Texas Quarterly Report of Credit Card Expenditures Fourth Quarter FY 2007 Cardholder Position: Interim City Manager, John Joerns Payee Date Amount Expense Type Purpose Best Western Sunset 06/24/07 9.57 Meal Reimbursement to CLP for Jackie Joerns meal Ck#5333 TCMA Annual Conference June 22-24, 2007 San Antonio, Texas Kemah-Aquarium Seafood 07/24/07 108.75 Lunch Employee of the year lunch Gustavo Alfaro, Steve Gillett, Lee Allen & John Joerns July 24, 2007 John Joerns - Kemah, TX Check # 233989 234364 Total Quarterly Charges $ 118.32 NOTE: This report reflects all PA YMENTS made during the Fourth Quarter of FY 2007 (July, August, September 2007) September 30, 2007 This report is in full compliance with the credit card policy as established by the City of La Porte's Audit Committee. 4 CITY OF LA PORTE Interoffice Memorandum FROM: Barry Beasley, Councilman Howard Ebow, Councilman Chuck Engelken, Councilman Tommy Moser, Councilman Louis Rigby, Councilman Ron Bottoms, City Manager John Joerns, Assistant City Manager Michael Dolby, Interim Finance Director Phyllis Rinehart, Controller TO: DATE: SUBJECT: October 15, 2007 Quarterly Investment Report For the fourth quarter of the 2007 fiscal year, the City's investment portfolio yield has been between 5.12% and 5.19%. The average return on the portfolio for the fourth quarter of the fiscal year was 5.16%, which is above the average yield of our benchmark, which was 4.72% (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 $2.7M which is approximately $1 M more than projected at this time. City \S. Benchmark 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% ----- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0"-': ~o..., <yl{jv ,,~ ~~ ~~<: ,,?:<f ~~ "..:><5 ,,~ ~~ C!'<). - Portfolio Yield - Benchmark At September 30th the City's portfolio consisted of 37% in Agency Notes, 40% in Texpool, 18% in TexSTAR and 5% in Logic (see pie chart below). By Investment Type 5% 18% I . Texpool . TexST AR 0 Logic 0 Agency Notes I The overnight rate set by the Fed has decreased. The most current overnight rate was set on September 18, 2007 at 4.75%. At the end of the fourth quarter, the City's portfolio consisted of 63% of the portfolio maturing overnight (see graph below). 5% of the City's portfolio matures in one year and 32% of the City's portfolio matures in 12-24 months. By Investment Maturity I · Overnight .1-12 Months o 12-24 Months I Currently, the 3-month T-Bill is at 4.47%; 2-year, at 4.13%; 5-year, at 4.26%; and, the 20-year is at 4.88% (see yield curve below). Yield Curve 6.00% 5.00% ~ 4.00% 3.00% 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 4.75%. We will continue to focus on laddering the portfolio to maintain a constant cash flow and a liquid position. 2 2 YearT-Note 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Sl(.;~ Sl(.;~ Sl(.;~ Sl(.;~ c?~ Sl(.;~ Sl(.;~ Sl(.;~ Sl(.;~ Sl(.;~ Sl(.;~ 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 30,2007 80.00% Par Book Market Days to Value Value Value Maturity Investment Pools 26.013.374 26.013.374 26,013.374 I Agencies \4,979,656 14,979.656 15.002.730 263 Total 40.993.030 40.993,030 41,016.104 97 Book Value Percent 1-12 months 26.013.374 63.46% 9-12 months 2.000.000 4.88% 1-2 years 12,979.656 31.66% Total 40,993,030 100.00% Pooled Funds Bond Funds Portfolio Yield 5.10% 5.13% Benchmark Yield" 4.52% 4.47% Total 5.12% Investment Maturity Schedule as of September 30,2007 Portfolio Performance for the month of September 2007 Weighted Average Maturity 2.71 months I day 4.50% 1.99 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 weigbted average monthly benchmark yields. General Enterprise Internal Service Budget 650.000 293,405 164,350 Actual 868,304 337,191 263.353 Total 1,107,755 1,468.847 Yield Curve 6.00% 1 5.00% t i 4.00% . 3.00% 2.00% 1.00% 0.00% .!" .~ ~I 5yr : )f( 3mo 6mo 2yr 1yf !-+-Ju'-07 AUg-07 ___ SeP-07! Portfolio Earnings for months ended September 2007 Percent 133.59% 114.92% 160.24% 132.60% WAN. . Pooled Funds 0.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-07 Aug-07 Sap-07 60.00% 40.00% 20.00% 0.00% Investment Pools 63.46% _ Sep-07 Agencies 36.54% _ Mar-07 _Sep-06 1-12 months 1-2 years Pooled Funds Bond Funds Total I [J Portfolio Yield . Benchmark Y ield* I 500,000 400,000 300,000 200,000 \ 00,000 General Enterprise Internal Service: . Budget . Actual % of funds invested in: Securities & Pools Bank Depository Total % of funds invested Average for September 2007 2006 94.87% 91.44% 5.13% 8.56% 100.00% 100.00% Operating Account Balance 2.218.515 2,934,600 September 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). G:~CLAoJ Phylli Rinehart Controller 5 July JPMORGAN CHASE JULY 7/6/07 -8/6/07 Total due on statement April payment not posted 106,998.95 Total to be paid from group $106,998.95 August JPMORGAN CHASE August 8/7/07 -9/5/07 Total due on statement April payment not posted 91,178.22 Total to be paid from group $91,178.22 September JPMORGAN CHASE September 9/6/07 -10/05/07 Total due on statement FY 07 Group FY 08 Group Total to be paid from group 119,568.92 89,517.85 30,051.07 $119,568.92