Title
Acceptance of Quarterly Investment Report (October - December 2016).
Body
Summary: Chapter 2, Administration, Article VII (Finance), All of Division 2 (Investment Policy), Section 2-274 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 and have signed this report for the quarter ended December 31, 2016.
At December 31, 2016, all City funds were held in various depository accounts or in accounts at TexPool or TexSTAR, which are local government investment pools authorized by the Investment Policy. Both 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) $ 36,022,785
Money Market Accounts 7,009,846
Certificates of Deposit 11,802,646
CDARS Program 5,048,178
TexPool 33,591,434
TexSTAR 28,228,769
Total Book Value $121,703,658
Working with the City's investment advisor, the City has diversified the portfolio during the past year with current investments of $23,860,670 in various depository banks through money market accounts, certificates of deposit, and CDARS (Note: CDARS is network of financial institutions that provides an investment opportunity for deposits in excess of the standard FDIC insurance maximum of $250,000. One bank acts as custodian for the CDARS deposits at the various other member banks. As an example, a $1,000,000 deposit is placed with seven banks, and all balances are covered by FDIC insurance. For the banks, this is cheaper than holding...
Click here for full text