HomeMy WebLinkAboutResolution No. 08-034
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 08- ~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, ACCEPTING THE DECEMBER 31TH, 2007
QUARTERLY INVESTMENT REPORT PREPARED BY AVALON
FINANCIAL SERVICES, WHICH IS ATTACHED HERETO AND
INCORPORATED HEREIN AS EXHIBIT "A"; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the quarterly investment report, prepared by Avalon Financial
Services, dated December 31,2007, have been presented to the City Council; and
WHEREAS, the City Council has determined it to be in the best interest of the
City to have an official record of its acceptance of such documents; and
WHEREAS, the City Council hereby accepts the December 31, 2007 Quarterly
Investment Report prepared by Avalon Financial Services, which is attached hereto and
incorporated herein as Exhibit "A."
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS THAT:
Section 1. The City Council hereby accepts the December 31, 2007 Quarterly
Investment Report prepared by Avalon Financial Services, which is attached hereto and
incorporated herein as Exhibit "A."
Section 2. This Resolution shall become effective immediately from and after its
passage, as the law and charter in such cases provides.
PASSED, APPROVED and EFFECTIVE this 17th day of March. 2008.
(!1~- LJ~ty'
Christie Wilson, City Secretary
City of The Colony
INVESTMENT PORTFOLIO SUMMARY
For the Quarter Ended
December 31, 2007
The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City
Inve~:~ UV
R,b"" Koo, . '''0' OfF6
j
Strategy Summary:
Through December, the Federal Open Market Committee (FOMC) reduced the fed funds target three times to 4.25%. The initial 50bp
was designed to stabilize the markets, however the larger than expected sub-prime mortgage market fall-out resulted in two additional
25bp actions. Although the markets have rallied to much lower yields, actual future economic and inflation data will determine other
FOMC moves. Interest rate conditions and market outlook will determine the appropriate strategy.
Quarterend Results by Investment Category:
Asset Type
Ave. Yield
4.29%
5.35%
December 31,2007
End Book Value End Market Value
$46,704,910.96 $46,704,910.96
2,718,937.00 2,738,939.45
$49,423,847.96 $49,443,850.41
September 28, 2007
Beain Book Value Beain Market Value
$32,619,598.53 $32,619,598.53
11,506,126.74 11,535,287.80
$44,125,725.27 $44,154,886.33
Pools
Securities
Totals
Average Yield (1)
Total Portfolio
4.35%
Fiscal Year-to-Date Average Yield (2)
Total Portfolio
4.35%
Rolling Three Mo. Treas. Yield
Rolling Six Mo. Treas. Yield
3.50%
4.16%
Rolling Three Mo. Treas. Yield
Rolling Six Mo. Treas. Yield
Average Quarterly TexPool Yield
3.50%
4.16%
4.25%
(1) Average Yield calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or
account for advisory fees.
(2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total
return analysis or account for advisory fees.
5.50
Treasury Yield Curves
5.00 ----
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3.50
3.00
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I-September 29, 2006 -September 28, 2007 -December 31,2007/
Valley View Consulting, L.L.C.
7.50
7.00
6.50
6.00
5.50
5.00
Q) 4.50
OJ)
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Q)
(,)
l-<
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0.. 3.50
3.00
2.50
2.00
1.50
1.00
0.50
US Treasury Historical Yields
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I-SixMonth "':"":"'Two Year -Ten Yearl
Valley View Consulting. L.L.C.
S&P 500
1,750
1,500
1,250
1,000
750
500
250
o
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
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[-S&P 5001
Valley View Consulting, L.L.C.
Detail of Security Holdings
December 31, 2007
Ticket Security
Number Description
T exPool
LOGIC
07=17 FHLMC
07=14 FHLMC
07=16 FHLB
Rating
AMm
AMm
AM
AM
AM
Coupon/
Discount
4.25%
4.50%
3.55%
4.13%
5.38%
Settlement
Date
12/31/2007
12/31/2007
7/19/2007
6/28/2007
7/2/2007
Maturity
Date
1/1/2008
1/1/2008
2/20/2008
2/25/2008
7/2/2009
7/2/2008
Call
Date
Adjusted
Original Face\ Book Market Market Life
Par Value Value Price Value (days) Yield
$38,691,436.71 $38,691,436.71 1.00 $38,691,436.71 1 4.25%
8,013,474.25 8,013,4 74.25 1.00 8,013,474.25 1 4.50%
1,000,000.00 989,920.00 99.89 998,909.94 51 5.31%
735,000.00 729,267.00 99.96 734,740.30 56 5.34%
1,000,000.00 999,750.00 100.53 1,005,289.21 549 5.40%
$49,439,910.96 $49,423,847.96 $49,443,850.41 14 4.35%
(1) (2)
(1) Weighted average life -For purposes of calculating weighted average life, pool investments are assumed to have a one day maturity.
(2) Weighted average yield to maturity -The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and
investment advisory fees are not considered.
City of The Colony
Portfolio Composition
Securities
5.50%
. . . . . . .
..............................
. . . . . . .
. . . . . . .
. . . . . . .
...........................
. . . . . .
. . . . . .
. . . . . .
.........................
. . . . . .
. . . . . .
......................
. . . . .
. . . . .
....................
.................
Pools
94.50%
City of The Colony
Total Portfol io
$60,000,000
$50,000,000 n _
::.-::.-
::~::':i:
$40,000,000 f---
::% '::f;[:f .O:;;i:
:>:: ;:;
$30,000,000 ;{::~;;::.:/~~ ]:;: '::
.:/
;fi:~ff :::>:
::::.-:j:::f~t @f~f
$20,000,000 f.;:::;::g':::~ ~.:..:::::;;;~:: :~:';::::
E:::::: ::::;P: ;.:>:>: :>:>:>:: ./>.:..,:.
I;;:::.;'~ :~f~~::~;
f::.;.:..::
$10,000,000 1----
::..;:.......~ ::.;:;:.;
I:>@.;:':ii i/>:>:>:>: >:
-;::.:: .,:>:>.
$0 .-;..-; /...;
12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007
I [] Quarterend Book Value I
Adjusted Book Value Comparison
September 28, 2007 December 31, 2007
Ticket Security Maturity Original Face/ Adjusted Purchases/ Amort./Calls/ Original Face/ Adjusted
Number Description Date Par Value Book Value Accretions Sales/Maturities Par Value Book Value
TexPool 1/1/2008 $10,689,091.25 $10,689,091.25 $28,002,345.46 $38,691,436.71 $38,691,436.71
LOGIC 1/1/2008 21,930,507.28 21,930,507.28 (13,917,033.03) 8,013,474.25 8,013,474.25
06=03 FHLB 10/5/2007 500,000.00 500,000.00 (500,000.00)
07=09 FHLMC 10/5/2007 544,000.00 542,595.39 (542,595.39)
07=08 FHLB 10/29/2007 560,000.00 555,363.20 (555,363.20)
07=13 FFCB 12/3/2007 550,000.00 543,807.00 (543,807.00)
07=17 FHLMC 2/20/2008 1,000,000.00 989,920.00 1,000,000.00 989,920.00
07=14 FHLMC 2/25/2008 735,000.00 729,267.00 735,000.00 729,267.00
07=04 FHLB 3/19/2008 500,000.00 500,000.00 (500,000.00)
07=10 FHLB 5/1/2008 500,000.00 499,755.65 (499,755.65)
06=32 FHLB 6/18/2008 600,000.00 600,000.00 (600,000.00)
07=03 FHLB (step) 8/15/2008 500,000.00 497,500.00 (497,500.00)
07=02 FHLB (step) 8/20/2008 150,000.00 148,918.50 (148,918.50)
07=07 FHLMC 1 0/9/2008 1,000,000.00 1,000,000.00 (1,000,000.00)
07=11 FHLB 11/24/2008 500,000.00 500,000.00 (500,000.00)
07=12 FHLB 12/4/2008 1,000,000.00 999,450.00 (999,450.00)
06=28 FHLB 12/5/2008 500,000.00 500,000.00 (500,000.00)
07=06 FHLB 4/16/2009 1,000,000.00 1,000,000.00 (1,000,000.00)
07=16 FHLB 7/2/2009 1,000,000.00 999,750.00 1,000,000.00 999,750.00
07=15 FHLB 12/28/2009 400,000.00 399,800.00 (399,800.00)
TOTAL $44,158,598.53 $44,125,725.27 $28,002,345.46 ($22,704,222.77) $49,439,910.96 $49,423,847.96
Market Value Comparison
September 28, 2007 December 31, 2007
Security Coupon! Original Face! Market Original Face! Market
Description Discount Par Value Price Market Value Par Value Price Market Value
TexPool $10,689,091.25 1.000 $10,689,091.25 $38,691,436.71 1.000 $38,691,436.71
LOGIC 21,930,507.28 1.000 21,930,507.28 8,013,474.25 1.000 8,013,4 74.25
06=03 FHLB 500,000.00 100.000 500,000.00
07=09 FHLMC 544,000.00 99.770 542,748.80
07=08 FHLB 560,000.00 99.880 559,328.00
07=13 FFCB 550,000.00 99.630 547,965.00
07=17 FHLMC 1,000,000.00 99.460 994,600.00 1,000,000.00 99.891 998,909.940
07=14 FHLMC 735,000.00 99.660 732,501.00 735,000.00 99.965 734,740.302
07=04 FHLB 500,000.00 100.050 500,250.00
07=10 FHLB 500,000.00 100.010 500,050.00
06=32 FHLB 600,000.00 100.050 600,300.00
07=03 FHLB (step) 500,000.00 100.270 501,350.00
07=02 FHLB (step) 150,000.00 99.970 149,955.00
07=07 FHLMC 1,000,000.00 100.000 1,000,000.00
07=11 FHLB 500,000.00 100.060 500,300.00
07=12 FHLB 1,000,000.00 100.060 1,000,600.00
06=28 FHLB 500,000.00 100.060 500,300.00
07=06 FHLB 1,000,000.00 100.020 1,000,200.00
07=16 FHLB 1,000,000.00 100.440 1,004,400.00 1,000,000.00 100.529 1,005,289.210
07=15 FHLB 400,000.00 100.110 400,440.00
TOTAL 44,158,598.53 44,154,886.33 $49,439,910.96 $49,443,850.41
Book Value Allocated by Fund
2,078,503.65
December 31, 2007
001 002 003 004 005 006 010
2002 2003 2004 2006 2006 2007 2004
C/O C/O C/O C/O EDC C/O C/O Revenue
406,438.31 159,989.64 256,804.06 1,612,707.35 0.00 898,486.21 2,600,545.03
07=17
07=14
07=16
Ticket Security
Number Description
TexPool
LOGIC
FHLMC
FHLMC
FHLB
System
Fund
$38,691,436.71
020
Debt Service
Reserve Fund
989,920.00
729,267.00
999,750.00
$41,410,373.71 $2,078,503.65 $406,438.31 $159,989.64 $256,804.06 $1,612,707.35
$0.00
$898,486.21 $2,600,545.03
Market Value Allocated by Fund
December 31, 2007
Ticket Security System Debt Service 2002 2003 2004 2006 2006
Number Description Fund Reserve Fund C/O C/O C/O C/O EDC C/O
T exPool $38,691,436.71
LOGIC 2,078,503.65 406,438.31 159,989.64 256,804.06 1,612,707.35 0.00
07=17 FHLMC 998,909.94
07=14 FHLMC 734,740.30
07=16 FHLB 1,005,289.21
2007 2004
C/O Revenue
898,486.21 2,600,545.03
$41,430,376.16 $2,078,503.65 $406,438.31 $159,989.64 $256,804.06 $1,612,707.35
$0.00
$898,486.21 $2,600,545.03
Fund October November December Quarterly
No. Fund Name 2007 2007 2007 Totals
100 General Fund 44,621.37 15,135.51 35,058.95 94,815.83
200 Utility Fund 19,740.10 11,747.65 27,608.36 59,096.11
201 Engineering - Inspections 842.45 616.29 989.92 2,448.66
210 U. F. Special Capital Projects 2,064.43 1,107.90 2,290.96 5,463.29
213 2004 Revenue Bonds 11,631.06 10,736.63 10,176.58 32,544.27
214 2006 U. F. Cert of Obligation 9,509.33 11,862.99 12,642.42 34,014.74
215 2007 U. F. Cert of Obligation 32,991.61 361.57 15,224.06 48,577.24
280 Impact Fees - Water/Sewer 6,446.93 3,605.36 7,864.37 17,916.66
300 Fleet Replacement 218.96 211.77 294.43 725.16
500 General Debt Service Fund 6,043.91 1,442.12 5,218.20 12,704.23
501 Tax Supported Debt Service 2,876.84 566.25 2,826.94 6,270.03
502 Revenue Bond Debt Service 9,046.36 8,402.47 8,921.01 26,369.84
520 Community Complex Debt 1,702.74 1,694.90 2,559.01 5,956.65
604 Economic Dev. Corp. 4A 31,357.38 15,000.14 35,358.71 81,716.23
605 Community Dev. Corp. 4B 12,727.76 4,315.48 13,828.34 30,871.58
700 Court Security Fund 851.40 559.06 1,087.03 2,497.49
701 Court Technology Fund 404.36 265.71 512.67 1,182.74
705 Environmental Fund 403.20 246.28 401.50 1,050.98
715 Hotel/Motel Taxes 1,891.18 1,118.08 2,233.46 5,242.72
720 Lake Park Funds 425.77 266.84 486.90 1,179.51
723 Special Events Fund 408.30 308.39 453.35 1,170.04
725 Community Center 91.46 64.32 59.74 215.52
730 Library Grants 6.79 2.68 23.65 33.12
752 Police Forfeited Funds 51.67 39.50 55.17 146.34
753 Police Seized Funds 0.28 0.01 - 0.29
800 Capital Projects Administration 2,309.63 1,424.66 2,826.52 6,560.81
815 Impact Fees - Streets 237.78 269.09 356.17 863.04
816 Impact Fees - Drainage 358.41 324.86 469.08 1,152.35
817 Drainage Improvements 380.56 60.03 378.12 818.71
820 Capital Projects Streets 3,809.30 613.80 3,302.56 7,725.66
825 Park Improvements 3,936.31 2,975.71 4,818.49 11,730.51
826 Park's Capital Projects 1,824.49 1,280.89 2,198.97 5,304.35
827 Five Star Complex 409.27 148.80 407.25 965.32
840 2002 G. F. Cert of Obligations 1,819.80 1,663.51 1,675.88 5,159.19
841 2003 Cert of Obligations 693.74 644.36 739.46 2,077.56
842 2004 Cert of Obligations 4,188.41 998.42 6,195.96 11,382.79
843 2006 G. F. Cert of Obligations 670.33 590.48 455.32 1,716.13
844 2007 G. F. Cert of Obligations 36,662.65 61,437.70 29,486.00 127,586.35
Totals 254,117.01 162,386.42 240,109.61 656,613.04
INTEREST DISTRIBUTION (With Amortization)
OCTOBER THROUGH DECEMBER 2007
Book Value Allocated by Fund
Ticket Security
Number Description
T exPool
LOGIC
FHLB
FHLMC
FHLB
FFCB
FHLMC
FHLMC
FHLB
FHLB
FHLB
FHLB (step)
FHLB (step)
FHLMC
FHLB
FHLB
FHLB
FHLB
FHLB
FHLB
06=03
07=09
07=08
07=13
07=17
07=14
07=04
07=10
06=32
07=03
07=02
07=07
07=11
07=12
06=28
07=06
07=16
07=15
System
Fund
$10,689,091.25
500,000.00
542,595.39
555,363.20
543,807.00
989,920.00
729,267.00
500,000.00
499,755.65
600,000.00
497,500.00
148,918.50
1,000,000.00
500,000.00
999,450.00
500,000.00
1,000,000.00
999,750.00
399,800.00
$22,195,217.99
020
Debt Service
Reserve Fund
2,060,203.00
September 28, 2007
001 002 003 004 005 006 010
2002 2003 2004 2006 2006 2007 2004
C/O C/O C/O C/O EDC C/O C/O Revenue
414,873.78 157,991.85 120,156.75 1,751,730.61 0.00 14,775,723.71 2,649,827.58
$2,060,203.00 $414,873.78 $157,991.85 $120,156.75 $1,751,730.61
$0.00 $14,775,723.71 $2,649,827.58
Market Value Allocated by Fund
Ticket Security
Number Description
TexPool
LOGIC
FHLB
FHLMC
FHLB
FFCB
FHLMC
FHLMC
FHLB
FHLB
FHLB
FHLB (step)
FHLB (step)
FHLMC
FHLB
FHLB
FHLB
FHLB
FHLB
FHLB
06=03
07=09
07=08
07=13
07=17
07=14
07=04
07=10
06=32
07=03
07=02
07=07
07=11
07=12
06=28
07=06
07=16
07=15
September 28, 2007
System Debt Service 2002 2003 2004 2006 2006 2007 2004
Fund Reserve Fund C/O C/O C/O C/O EDC C/O C/O Revenue
$10,689,091.25
2,060,203.00 414,873.78 157,991.85 120,156.75 1,751,730.61 0.00 14,775,723.71 2,649,827.58
500,000.00
542,748.80
559,328.00
547,965.00
994,600.00
732,501.00
500,250.00
500,050.00
600,300.00
501,350.00
149,955.00
1,000,000.00
500,300.00
1,000,600.00
500,300.00
1,000,200.00
1,004,400.00
400,440.00
$22,224,379.05 $2,060,203.00 $414,873.78 $157,991.85 $120,156.75 $1,751,730.61 $0.00 $14,775,723.71 $2,649,827.58
Disclaimer
These reports were compiled using information provided by the City. No procedures were performed to test the
accuracy or completeness of this information. The market values included in these reports were provided by the
City. Yield calculations are not determined using standard performance formulas, are not representative of total
return yields, and do not account for investment advisor fees.