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Home My WebLink AboutResolution No. 08-051 CITY OF THE COLONY, TEXAS RESOLUTION NO. 08- _05/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING THE MARCH 31TH, 2008 QUARTERLY INVESTMENT REPORT PREPARED BY A V ALON 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 March 31, 2008, 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 March 31, 2008 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 March 31, 2008 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 2nd day of June, 2008. n ~/~ (JJ~^r' ChrIstie . son, City Secretary City of The Colony INVESTMENT PORTFOLIO SUMMARY For the Quarter Ended March 31, 2008 The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City Inve"men! POIiey~ ' --; I-<<.. ,ZYL-- I ~ ,;r-o Rebecca Koo, Director of Finance '-(Y)a..n~ e1cLJ Gwen Mansfield, Accounting Manager Strategy Summary: The Federal Open Market Committee (FOMC) continued reducing the fed funds target to 2.25%. The initial reductions, designed to stabilize the markets, have not stemmed the risk of economic slowdown and potential recession. Although the market had rallied to lower short term yields, recent movements indicate it may be looking for a bottom. Future FOMC actions will determine interest rate conditions and market outlook. Quarterend Results by Investment Category: Asset Type Ave. Yield 2.98% 3.07% March 31, 2008 End Book Value End Market Value $45,207,878.81 $45,207,878.81 3,011,218.14 3,015,013.09 $48,219,096.95 $48,222,891.90 December 31, 2007 Beain Book Value Beain Market Value $46,704,910.96 $46,704,910.96 2,718,937.00 2,738,939.45 $49,423,847.96 $49,443,850.41 I I . I I I I Pools Securities Totals Average Yield (1) Total Portfolio 2.98% Fiscal Year-to-Date Average Yield (2) Total Portfolio 3.67% Rolling Three Mo. Treas. Yield Rolling Six Mo. Treas. Yield 2.22% 2.96% Rolling Three Mo. Treas. Yield Rolling Six Mo. Treas. Yield Average Quarterly TexPool Yield 2.86% 3.56% 3.61% (1) Average Yield calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. (2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. Treasury Yield Curves 5.50 5.00 4.50 ~ 4.00 eJ) ~ 3.50 ...... = ~ C.J 3.00 "- ~ ~ 2.50 2.00 1.50 1.00 O~ ~~O ~~~ ~ ~ ~ ~ ~<<,) ~~~ ~~~ ~<<,) '\. 'Y '? ':l '\.~ I-March 30, 2007 -December 31,2007 -March 31, 20081 Valley View Consulting, L.L.C. 7.50 7.00 6.50 6.00 5.50 5.00 (]) 4.50 OJ) ro - c 4.00 (]) u .... (]) 0.. 3.50 3.00 2.50 2.00 1.50 1.00 US Treasury Historical Yields 0.50 #~~~~############~~~~####~~~~####~~~~# #~###~#$~~#$~~#$~~#$~~#$~~#$~~#$~~#$~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I-Six Month -Two Year -Ten Year I Valley View Consulting. L.L.C. o R> B ~Oj ~Oj ~'lj ~'lj ';) 'lJ-~ ';) 'lJ-~ 1,750 1,500 1,250 1,000 750 500 250 S&P 500 ~~ ~ PI.,. ~~ ~':> ~ ~ ~ ~ ~'lj ~'lj ~'lj ~'lj ';) 'lJ-~ ';) 'lJ-~ ';) 'lJ-~ ';) 'lJ-~ ~~ ~~ ~<:o ~ ~'b ~ ~ ~ ~ ~ ~'lj ~'lj ~'lj ~'lj ~'lj ';) 'lJ-~ ';) 'lJ-~ ';) 'lJ-~ ';) 'lJ-~ ';) 'lJ-~ l-s&P 5001 Valley View Consulting, L.L.C. Detail of Security Holdings March 31, 2008 Ticket Security Number Description TexPool LOGIC 08=01 FHLB 07=16 FHLB Rating AMm AMm AM AM Coupon/ Discount 2.97% 3.19% 2.56% 5.38% Settlement Date 3/31/2008 3/31/2008 3/19/2008 7/2/2007 Maturity Date 4/1/2008 4/1/2008 2/13/2009 7/2/2009 Call Date 7/2/2008 Adjusted Original Face\ Book Market Market Life Par Value Value Price Value (days) Yield $44,376,879.31 $44,376,879.31 1.00 $44,376,879.31 1 2.97% 830,999.50 830,999.50 1.00 830,999.50 1 3.19% 2,000,000.00 2,011,468.14 100.35 2,006,976.90 319 1.91% 1,000,000.00 999,750.00 100.80 1,008,036.19 458 5.40% $48,207,878.81 $48,219,096.95 $48,222,891.90 24 2.98% (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 6.24% . . . . . . . ................................. . . . . . . . . . . . . . . . . . . . . . . . . ............................... . . . . . . . . . . . . . . . . . . . . . ............................ . . . . . . . . . . . . . . . . . . . ......................... . . . . . . . . . . . . . . . . . . ...................... ................... Pools 93.76% $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 City of The Colony Total Portfolio $0 ~;5~~ ;~ ~~ ;/. /"//,t; ~d~ ;''l~:'-;% . ;z,':;yz / ~~ ~%i . " 2 ;:~F W'~'/ &r4%~ ~w~ %:1:--- '/.." '" W} /'~*!~ tWti2 '/..'~'/ ,,~~~ w~( W&I ~':iF"~ ~~' ;-Y'/.."% :.~ rrlff ~ ??%&/ ~f&~ :!fi%$: '/.. '"i':<<.&: ~:~" ~~ - ~'%~" ;;'W& ~~, %~ ~~ ~,~!i ~/:%'~ .~{;8 ,5}% ~~ ~ '/.. ~%~ ~/?~/,.'/ - - ~,%~ I ??:: :1::. '/ ' 'dr-' ?; , '0:1:" , , '0'/..'/.. . ~#~ ~';~ . h'" .:;.;./ ?~'/.. ~~ 'R ?-?i:''/.. ~~ I'/.. ''/.'/, . . ~f%)~ % '0/0' '. ~~ :i~:}1 M ,'/.0, '/.'0 ~I/'/' "~ W?@ff , ~/ ,,~ &w,g f%'/,.//,1 tJ%l* ~&P ~~ ~I& ,'/X :/.//. . ~~ . ' %:1fi" ~"/'% ~ffi ~ ~?:% ,;,- 'fm~ ~~ .~-m~ :,.', ,>%,/, :I;:(f}} '0 *@fi ;:y-%,j; ~j~ I - ;:Wy;t{{ I~ ~...... .. ~;,/~ 'iiWgj - %f$f" // ...,....:.--: ~,'~f% ::,;~/m ~~ W~ f~~ WJ~ %/~;,i . '~~~ 14-} ;.%%'/.. ;:~~ ~,<~~ '@J.1f M %' "/. ~~'/,. ~~y ?'fflj,?? ~Z??; 0'~':/. :%'i@,,;. :~~ X/ '/. '/,. '~~w:# ~0J~ !~~~ ~~J,;~ :i5%';: , :/.//,% " /, :/./%%: 12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007 313112008 10 Quarterend Book Value I Adjusted Book Value Comparison December 31,2007 March 31, 2008 Ticket Security Maturity Original Face/ Adjusted Purchases/ Amort.lCalls/ Original Face/ Adjusted Number Description Date Par Value Book Value Accretions Sales/Maturities Par Value Book Value T exPool 4/1/2008 $38,691,436.71 $38,691,436.71 $5,685,442.60 $44,376,879.31 $44,376,879.31 LOGIC 4/1/2008 8,013,474.25 8,013,474.25 (7,182,474.75) 830,999.50 830,999.50 07=17 FHLMC 2/20/2008 1,000,000.00 989,920.00 (989,920.00) 07=14 FHLMC 2/25/2008 735,000.00 729,267.00 (729,267.00) 08=01 FHLB 2/13/2009 2,011,468.14 2,000,000.00 2,011,468.14 07=16 FHLB 7/2/2009 1,000,000.00 999,750.00 1,000,000.00 999,750.00 TOTAL $49,439,910.96 $49,423,847.96 $7,696,910.74 ($8,901,661.75) $48,207,878.81 $48,219,096.95 Market Value Comparison December 31, 2007 March 31 , 2008 Security Coupon/ Original Face/ Market Quarterly Original Face/ Market Description Discount Par Value Price Market Value Change Par Value Price Market Value TexPool $38,691,436.71 1.000 $38,691,436.71 $44,376,879.31 1.000 $44,376,879.31 LOGIC 8,013,4 74.25 1.000 8,013,474.25 830,999.50 1.000 830,999.50 07=17 FHLMC 1,000,000.00 99.891 998,909.94 07=14 FHLMC 735,000.00 99.965 734,740.30 08=01 FHLB 2,000,000.00 100.349 2,006,976.900 07=16 FHLB 1,000,000.00 100.529 1,005,289.21 1,000,000.00 100.804 1,008,036.190 TOTAL $49,439,910.96 $49,443,850.41 ($1,220,958.51 ) $48,207,878.81 $48,222,891.90 Book Value Allocated by Fund Ticket Security Number Description T exPool LOGIC 08=01 FHLB 07=16 FHLB System Fund $44,376,879.31 001 2002 C/O March 31, 2008 002 003 2003 2004 C/O C/O 410,273.20 161,499.20 259,227.10 2,011,468.14 999,750.00 $47,388,097.45 $410,273.20 $161,499.20 $259,227.10 Market Value Allocated by Fund Ticket Security System 2002 2003 2004 Number Description Fund C/O C/O C/O T exPool $44,376,879.31 LOGIC 410,273.20 161,499.20 259,227.10 08=01 FHLB 2,006,976.90 07=16 FHLB 1,008,036.19 $47,391,892.40 $410,273.20 $161,499.20 $259,227.10 Fund January February March Quarterly No. Fund Name 2008 2008 2008 Totals 100 General Fund 36,670.87 30,119.04 24,565.98 91,355.89 200 Utility Fund 20,741.39 14,715.59 13,292.20 48,749.18 201 Engineering - Inspections 893.88 607.52 506.24 2,007.64 210 U. F. Special Capital Projects 1,562.52 1,086.95 899.84 3,549.31 213 2004 Revenue Bonds 8,664.48 6,400.15 5,956.17 21,020.80 214 2006 U. F. Cert of Obligation 10,510.06 7,606.09 6,982.13 25,098.28 215 U.F. 2007 Cert of Obligation 13,070.15 9,749.04 7,743.19 30,562.38 280 Impact Fees - Water/Sewer 5,919.20 4,256.00 3,797.89 13,973.09 300 Fleet Services 351.38 343.07 280.37 974.82 500 General Debt Service Fund 7,219.35 11,515.27 2,659.54 21,394.16 501 Tax Supported Debt Service 2,322.81 1 ,287.34 157.85 3,768.00 502 Revenue Bond Debt Service 7,080.98 5,357.84 4,223.50 16,662.32 520 Community Complex Debt 999.32 858.83 934.18 2,792.33 604 Economic Dev. Corp. 4A 25,269.24 16,861.73 13,072.09 55,203.06 605 Community Dev. Corp. 4B 9,694.51 6,431.88 4,257.08 20,383.47 700 Court Security Fund 972.49 668.66 533.20 2,174.35 701 Court Technology Fund 446.32 315.80 268.29 1,030.41 705 Environmental Fund 314.41 190.84 138.80 644.05 715 Hotel/Motel Taxes 1,697.35 1,226.33 1,022.18 3,945.86 720 Lake Park Funds 499.87 378.15 346.70 1,224.72 723 Special Events Fund 423.16 283.91 215.30 922.37 725 Community Center 35.76 10.24 (0.30) 45.70 730 Library Grants 46.55 34.48 41.99 123.02 752 Police Forfeited Funds 47.72 35.78 34.54 118.04 753 Police Seized Funds 4.04 5.51 5.33 14.88 800 Capital Projects Administration 2,184.79 1,411.82 1,045.85 4,642.46 815 Impact Fees - Streets 311.97 251.50 434.52 997.99 816 Impact Fees - Drainage 403.72 315.88 303.31 1,022.91 817 Drainage Improvements 169.13 106.32 113.76 389.21 820 Capital Projects Streets 325.03 - 6.93 331.96 825 Park Improvements 3,917.26 2,854.57 2,512.96 9,284.79 826 Park's Capital Projects 1,744.71 1,256.95 1,115.65 4,117.31 827 Five Star Complex 257.08 172.78 134.54 564.40 840 2002 G. F. Cert of Obligations 1,551.98 1,175.37 1,107.54 3,834.89 841 2003 Cert of Obligations 679.92 514.40 485.71 1,680.03 842 2004 Cert of Obligations 2,547.30 1,770.30 1,662.29 5,979.89 843 2006 G. F. Cert of Obligations 377.95 283.34 264.29 925.58 845 2007 G. F. Cert of Obligations 24,541.76 17,963.19 15,249.13 57,754.08 Totals 195,031.40 148,811.56 116,719.07 460,562.03 INTEREST DISTRIBUTION (With Amortization) JANUARY THROUGH MARCH 2008 Book Value Allocated by Fund December 31, 2007 020 001 002 003 004 005 006 010 Ticket Security System Debt Service 2002 2003 2004 2006 2006 2007 2004 Number Description Fund Reserve Fund C/O C/O C/O C/O EDC C/O C/O Revenue TexPool $38,691,436.71 LOGIC 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 07=17 FHLMC 989,920.00 07=14 FHLMC 729,267.00 07=16 FHLB 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 ex Pool $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 J r I I 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.