Title
Acceptance of Quarterly Investment Report (April - June 2018).
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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 June 30, 2018.
At June 30, 2018, 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) $ 16,106,396
Money Market Accounts 14,291,803
Certificates of Deposit 29,785,033
TexPool 23,752,529
TexSTAR 26,074,126
Total Book Value $110,009,887
Working with the City's investment advisor, the City has diversified the portfolio during the last few years with current investments of $44,076,836 in various depository banks through money market accounts and certificates of deposit. These investments represent about 40 percent of the portfolio.
These depository investments are earning between 1.25% and 2.75%. Comparatively, rates in the investment pools averaged 1.7324% and 1.7287% 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 the thir...
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