Title
Acceptance of the Quarterly Investment Report for the quarter ended September 30, 2026.
Body
Summary:
Chapter 2, Administration, Article VII (Finance), All of Division 3 (Investment Policy), Section 2-336 Reporting, of the Code of Ordinances of the City of Deer Park, requires the Investment Officers to prepare and submit to City Council an investment report no less than on a quarterly basis. This requirement is in compliance with the Texas Public Funds Investment Act, V.T.C.A., Government Code Ch. 2256 as amended (the "Act"). The City's Investment Officers have worked with the Investment Advisor to prepare this report for the quarter ended September 30, 2026 and each has signed the report.
At September 30, 2026, all City funds were held in various depository accounts or in accounts at TexPool, TexSTAR, or Texas CLASS, which are local government investment pools authorized by the Investment Policy. All three pools continue to maintain their AAAm rating by Standard & Poor's, which is the highest rating a local government investment pool can achieve.
Cash and investment activity included on the attached report is summarized below:
Cash in Wells Fargo (Depository Bank) $26,088,587.85
Money Market Accounts 8,896,056.62
Certificates of Deposit 23,370,158.83
Securities 17,861,638.21
TexPool 43,441.793.57
TexSTAR 3,307,701.02
Texas CLASS 12,773,807.48
Total Book Value $135,739,743.58
Working with the City's investment advisor, the City has diversified the portfolio during the last several years with current investments of $50,127,853.66 in various money market accounts, certificates of deposit (CDs), and securities. At the end of the quarter, these investments represent about 37% of the portfolio. Cash balances held in the primary depository bank represent about 19% of the portfolio at September 30, 2026.
These investments are earning between 3.55% and 4.33%. Comparatively, rates in the investment pools averag...
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