ROBIN ELACKATT Councilmember District C. (a) Review Comprehensive Annual Financial Report for period ending June 30, 2010.

Size: px

Start display at page:

Download "ROBIN ELACKATT Councilmember District C. (a) Review Comprehensive Annual Financial Report for period ending June 30, 2010."

Gavin Harper
8 years ago
Views:

1 CITY OF MISSOURI CITY, TEXAS the show me city FINANCE COMMITTEE MEETING AGENDA JERRY WYATT Councilmember At Large Position 1 ROBIN ELACKATT Councilmember District C BRETT KOLAJA Mayor Pro Tem Councilmember District D Notice is hereby given of a meeting of the Finance Committee to be held on Monday, December 6, 2010, at 5:30 p.m. at: City Hall (2 nd Floor), Mayor Office, 1522 Texas Parkway, Missouri City, Texas, for the purpose of considering the following: 1. CALL TO ORDER 2. DISCUSSION/POSSIBLE ACTION (a) Review Comprehensive Annual Financial Report for period ending June 30, (b) Consider and discuss the quarterly investment report. 3. ADJOURNMENT In compliance with the Americans with Disabilities Act, the City of Missouri City will provide for reasonable accommodations for persons attending Finance Committee meetings. To better serve you, requests should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at CERTIFICATION I certify that a copy of the December 6, 2010, meeting agenda of items to be considered by the Finance Committee was posted on the City Hall bulletin board on December 3, 2010 at: 3:30 p.m. Maria Gonzalez, Deputy City Secretary I certify that the attached notice and agenda of items to be considered by the Finance Committee was removed by me from the City Hall bulletin board on the day of, Title:

CALL TO ORDER 2. DISCUSSION/POSSIBLE ACTION (a) Review Comprehensive Annual Financial Report for period ending June 30

2 the show me city Finance Committee Meeting Agenda Item December 6, DISCUSSION/POSSIBLE ACTION (b) Consider and discuss the quarterly investment report. Background information attached as follows: Cover Memo Quarterly Investment Report

3 the show me city Finance Committee Agenda Item Cover Memo December 6, 2010 To: Committee Members Wyatt, Gary and Kolaja Agenda Item: 2b Review Investment Report Quarter Ending Submitted by: Wes Vela, Director of Finance Michael Higgins, Asst. Director of Finance SYNOPSIS To review the investment report for the 3 rd Quarter of BACKGROUND The Quarterly Investment Report for the period ending September 30, 2010, is attached for your review and consideration of acceptance. A few items to note about the report are that during this period the weighted average maturity (WAM) went from 471 days to 136 days. The decrease during the quarter was due to two high yield $10 million securities that matured and a $15 million high yield security that was sold during the period. The City eventually purchased $31.8 million in higher interested bearing securities in October. The city s investment policy limits the WAM to 2 years and therefore the WAM is within the policy. Also, the portfolio of $97.3 million consists of.003% in Texpool, Logic, and CD s, 22.7% in Agencies, and 77% in the Government Investment Checking Account (GAIC) earning higher interest than Texpool and Logic. FISCAL ANALYSIS Investment activities are expected to yield an amount of interest equal to our projected amount. STAFF S RECOMMENDATION Approve the acceptance of the Quarterly Investment Report for the period ended September 30, 2010 and place on future City Council Agenda for their acceptance.

BACKGROUND The Quarterly Investment Report for the period ending September 30, 2010, is attached for your review and consideration of acceptance.

4 Quarterly Investment Report For the City of Missouri City 1522 Texas Parkway Missouri City, TX July 1, 2010 September 30, 2010

5 City of Missouri City Quarterly Investment Report September 30, 2010 As of September 30, 2010, the City of Missouri City earned a weighted average yield to maturity of 1.312%, compared to last quarter s yield of 1.839%. The average 90 day T-Bill at quarter-end was.150%, and at June 2010, the average was.168%. The City s portfolio at September 30 was 1,162 basis points over our market benchmark rate due to higher yielding investments and interest rates. Total interest income for this quarter is $437,373.45, and for the quarter ending June 30, 2010, interest earned was $436,553. The weighted average maturity (WAM) at September 30, 2010, is 136 days which is within our investment policy of 2 years (730 days) or less. At June 30, 2010, the WAM was 471 days. The reason for the decrease were the result of two $10 million agencies maturing in the quarter, plus the City sold a high yield $15 million agency early to prepare for the purchase of two higher yielding securities in October. This quarter s City portfolio consists of.003% in Texpool, Logic, and CD s, 22.7% in Agencies, and 77% in a GAIC (Government Interest Checking Account). A total of 77% of our portfolio has liquidity of 1 day, 7% from days, and 16% greater than 365 days. According to Bloomberg.com, the September 30, 2010, 90-day discounted T-Bill benchmark is.15%. One year ago it was at.267%. Texpool (.213%) is currently below the 90-day discounted rate, and Logic (.291%) is above the 90-day T-Bill discounted rate. After the 3-month discounted T-Bill rate, the yield curve increases to 3.875% at the 30-year treasury level. Source: Bloomberg.com According to Logic, Structural headwinds in the labor market, low inflation, accommodative monetary policy and legislative uncertainty will likely be primary drivers of the U.S. economy going forward. The Fed is expected to remain vigilant and pursue further bond purchases to help maintain lower interest rates, to stimulate mortgage refinance activity and to boost other asset prices generally. The City will continue to monitor data and continue to look for advice from brokers on when to look at potential investment opportunities.

The City s portfolio at September 30 was 1,162 basis points over our market benchmark rate due to higher yielding investments and interest rates. Total interest income for this quarter is $437,373.

2008 Psychic Portfolio Maturity

2008 Psychic Portfolio Maturity Navarro College Investment Report For the Quarter Ended May 31, 2008 Contact Information Rhina Sandoval Controller Navarro College 3200 W. 7th Avenue Corsicana, TX 75110 Phone: (903) 875-7465 E-mail: rhina.sandoval@navarrocollege.edu