Kilgore City Council passed a resolution, a budget amendment and heard a quarterly investment report at their Tuesday meeting.
City Controller Bill Martin delivered the report for the quarter ending June 30. The report encompassed the city’s investments as well as the Kilgore Economic Development Corporation’s investments.
“During this quarter, the city did issue bonds as well as KEDC so you’re going to see a fluctuation in some of the numbers for the quarter,” Martin said, adding national and global economic trends were a factor driving local interest rates relevant to the city’s investments.
“We started out the quarter at approximately $34.8 million and ended at approximately $37.7 million, which is an increase of about $3 million. That goes back partially to the bond issue that we had. We also had some outflows of expenses during that time period that took some of our balances down,” Martin said.
The opening balance for the quarter was $34,839,699.85. The closing balance for the quarter was $37,767,612.33. The net portfolio change was $2,927,912.48.
Interest earnings for the quarter were $221,007.61.
The market value of the city’s securities started out at $10,618,585.61 and closed at $12,554,306.55 for a net change of $1,935,720.94.
The book value of the securities began at $10,630,425.52 and closed at $12,548,920.46 for a net change of $1,918,495.04.
Martin said the city has $250,000 in certificates of deposit and approximately $10 million in TexPool investments. TexPool is a local government investment pool overseen by the State Comptroller of Public Accounts.
“That’s where a lot of our bond money is at this time,” Martin said.
He added the city has $4.8 million of investments in TexSTAR, an investment pool for local Texas governments.
The city’s money market accounts with Austin Bank ended the quarter at $9.6 million and the city’s checking account with Frost Bank ended the quarter at $506,000.
“(That) brings us back to our total of $37.7 million in investments for the city with an average yield in maturity of 2.4 percent,” Martin said.
KEDC’s investments started out at $10.7 million and ended the quarter at $15.6 million for a net change of $4.9 million.
“Once again, that’s where we’re seeing the change because of KEDC’s bond issue of approximately of $4.2 million,” Martin said.
KEDC had interest earnings of $82,000 for the quarter. They have $8.5 million in TexPool and $6.6 million investments in TexSTAR. Their Austin Bank accounts have $1.1 million for a total of $15.6 million invested with an average yield to maturity of 2.41 percent.
City Manager Josh Selleck spoke to the council about Resolution No. 19-15, regarding the Investment Policy and Strategies of the city for 2019-2020.
The resolution amends the city’s investment policy in conformance with the Texas Public Funds Investment Act.
“The investment policy, there were no legislatively required changes. We have made a few substitutions. We’ve made some adjustments to the broker/dealer list,” Selleck said.
Ordinance No. 1746 is a budget amendment reallocating some city funds.
The ordinance included taking $12,000 worth of interest earnings for a cart barn project and assigning funds for the project’s use, $134,000 to replace a chiller unit at the hospital, funds for KPD to replace radio equipment damaged by a lightning strike and assigning $15,000 for the design of improvements at the city poolhouse.
The ordinance and resolution were both passed unanimously.