Title
Acceptance of Quarterly Investment Report (October - December 2017).
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, 2017.
At December 31, 2017, 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) $ 27,260,593
Money Market Accounts 14,166,466
Certificates of Deposit 24,190,555
TexPool 30,634,600
TexSTAR 29,517,267
Total Book Value $125,769,481
Working with the City's investment advisor, the City has diversified the portfolio during the past year with current investments of $38,357,021 in various depository banks through money market accounts and certificates of deposit. These investments represent about 30 percent of the portfolio.
These depository investments are earning between 1.20% and 1.71%. Comparatively, rates in the investment pools averaged 1.0863% and 1.0980% for the quarter in TexPool and TexSTAR, respectively. The new depository investments have increased investment earnings, and the City continues to review and evaluate investment opportunities for safety, liquidity, and yield.
At the end of ...
Click here for full text