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Acceptance of the Quarterly Investment Report for the quarter ended March 31, 2021.
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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 this report for the quarter ended March 31, 2021 and each has signed the report.
At March 31, 2021, 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) $ 17,621,440
Money Market Accounts 2,128,044
Certificates of Deposit 61,186,069
TexPool 24,043,415
TexSTAR 7,380,109
Texas CLASS 7,687,668
Total Book Value $120,046,745
Working with the City's investment advisor, the City has diversified the portfolio during the last several years with current investments of $63,314,113 in various depository banks invested in money market accounts and certificates of deposit. At the end of the quarter, these investments represent about 52.7 percent of the portfolio. Cash balances held in the primary depository bank represent about 14.7 percent of the portfolio at March 31, 2021.
These depository investments are earning between 0.20% and 2.58%. Comparatively, rates in the investment pools averaged 0.0470%, 0.0378%, and 0.0555% f...
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