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Home My WebLink AboutResolution No. 08-112 CITY OF THE COLONY, TEXAS RESOLUTION NO. 08- / /9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING THE SEPTEMBER 30TH, 2008 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 September 30, 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 September 30, 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 September 30, 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 1st day of December 2008. APPROVED AS TO FORM: jU~A- ~ ~I\ Robert E. Hager, City Att ey ~~G!c,~ '?f~"":T r} 0...... ~~,;\:., (,rs'i~...,\ .':~:... ::.:: ~).>,'~,' (,:>..' ' '.. .,:\', ': \\ f, ::i;! ;, " ~ ,; ": \;~ B .-- . . c:; ~. ~ ' J '- . '~\ "" '~~~;;c>,.' '. .'",: ~~~ ./,F \...{~. ' ,. ~C\ f.iJ"~ ~::CCi..YL::..r;J1.JJJJY lTrr. . ./ .~;J tuJJ~ C fstie'Wilson, City Secretary City of The Colony INVESTMENT PORTFOLIO SUMMARY For the Quarter Ended September 30, 2008 The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City InVO:ffii;; 1) ~ Rebecca K 0, irector of Finance ~eF\ "-{Y)QJ) Gwen Mansfield, Accounting Manager Strategy Summary: Throughout the quarter, the Federal Open Markets Committee (FOMC) maintained the Fed Funds target rate at 2.00% - despite the market's expectations of a rate cut at the September meeting. This expectation was raised by the turmoil in the stock and financial markets as economic conditions deteriorated and Bear Stearns, Lehman Brothers, FNMA, FHLMC, and other financial institutions failed. The Fed Funds futures markets places a high probability that the FOMC will lower the funds rate during October due to continued global economic stress. The positive yield curve still allows laddered CDs or securities to increase current return. Quarterend Results by Investment Category: Asset Tvpe Pools/MMMF Securities Ave. Yield 2.41% 3.51% September 30,2008 End Book Value End Market Value $30,153,773.75 $30,153,773.75 9,094,968.14 9,080,902.50 $39,248,741.89 $39,234,676.25 June 30, 2008 BeQin Book Value BeQin Market Value $44,012,490.27 $44,012,490.27 3,011,218.14 2,998,427.56 $47,023,708.41 $47,010,917.83 Totals Average Yield (1) Total Portfolio 2.67% Fiscal Year-to-Date Average Yield (2) Total Portfolio 3.08% Rolling Three Mo. Treas. Yield Rolling Six Mo. Treas. Yield 1.55% 1.85% Rolling Three Mo. Treas. Yield Rolling Six Mo. Treas. Yield Average Quarterly TexPool Yield 2.23% 2.74% 2.97% (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. 1,750 1,500 1,250 1,000 750 500 250 S&P 500 o 9:)'0 9:)Oj ~ ~ ~1j ~1j ) 'lJ-<:' ) 'lJ-<:' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I-s&p 5001 Valley View Consulting, L.L.C. 7.50 7.00 6.50 6.00 5.50 5.00 Q) 4.50 01) CIl .- s::: 4.00 Q) u ~ Q) 0.. 3.50 3.00 2.50 2.00 1.50 1.00 0.50 US Treasury Historical Yields ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ N \~ N \~ N ~ W ~ N \~ W \~ N \~ ~ \~ N \~ W \~ W \~ ~ \~ N \~ W \~ N \~ W \~ N \~ W \~ N \~ W ~ ,I::l' , 1).' ^' ,I::l' , 1).' ^' ,I::l' , 1).' ^' ,I::l' , ~ ^' ,I::l' " 1).' ^' ,I::l' , ~ ^' ,I::l' , 1).' ^' ,I::l' " 1).' ^' ,I::l' , 1).' ^' ,I::l' " 1).' ^' I-Six Month -Two Year -Ten Year I Valley View Consulting. L.L.c. Treasury Yield Curves 5.00 4.50 4.00 3.50 ~ ell 3.00 eo: ..... = 2.50 ~ ~ .. 2.00 ~ ~ 1.50 1.00 0.50 0.00 O~ ic~O ~~~ ~ ~ ~ ~ ~~~ ~~~ ~~~ ~~ "- ~ '" ~ "-~ -September 28, 2007 -June 30, 2008 -September 30, 2008 Valley View Consulting, L.LC. Detail of Security Holdings September 30, 2008 Adjusted Ticket Security Coupon! Settlement Maturity Call Original Face\ Book Market Market Life Number Description Rating Discount Date Date Date Par Yalue Value Price Value (days) Yield TexPool AMm 2.41% 9/30/2008 10/1/2008 $28,488,946.13 $28,488,946.13 1.00 $28,488,946.13 1 2.41 % Texas Daily AMm 2.38% 9/30/2008 1 0/1/2008 1,031,563.08 1,031,563.08 1.00 1,031,563.08 1 2.38% LOGIC AMm 2.69% 9/30/2008 10/1/2008 633,135.54 633,135.54 1.00 633,135.54 1 2.69% WFMMMF 2.00% 9/30/2008 10/1/2008 129.00 129.00 1.00 129.00 1 2.00% 08=01 FHLB AM 2.56% 3/19/2008 2/13/2009 2,000,000.00 2,011,468.14 99.81 1,996,260.00 136 1.91% 08=03 FHLMC AM 4.00% 7/11/2008 7/28/2011 7/28/2009 2,000,000.00 1,996,500.00 100.41 2,008,280.00 1,031 4.06% 08=04 FHLB AM 3.95% 9/1/2008 9/22/2011 9/22/2009 1,090,000.00 1,090,000.00 100.13 1,091,362.50 1,087 3.95% 08=05 FFCB AM 4.05% 9/29/2008 9/29/2011 9/29/2009 2,000,000.00 2,000,000.00 99.41 1,988,120.00 1,094 4.05% 08=06 FFCB AM 3.75% 9/18/2008 9/29/2011 9/29/2009 2,000,000.00 1,997,000.00 99.84 1,996,880.00 1,094 3.80% $39,243,773.75 $39,248,741.89 $39,234,676.25 202 2.67% (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 23.17% ........................... . . . .. .. . . . .. .. . . . .. .. ................................. . . . .. .. . . . .. .. . . . .. .. ................................. . . . .. .. . . . .. .. . . . .. .. ............................. ......... . . . .. .. . . . . . . . . . . ....................................................... . ..... . . . . . . ..... . . . . . . ..... . . . . . ....... .................................................... ......... . ..... . . ..... . . ..... . . . . . ................................................................. . . ..... . . . . . .. . ..... . . . . . .. . ..... . . . . . ..,.................................................................. ,. - ..... . . . . . .. . ..... . . . . . .. . ..... . . . . . ........................................................................ .. . ..".. . . . . . .. . ..... . . . . . . .. . ..... . . . . . ........................................................................... . .. . ..... . . . . . . .. . ..... . . . . . . .. . ..... . . . . . ...... ...................................................................... . .. . ..... . . . . . . .. . ..... . . . . . . .. . ..... . . . . . ............................................................................. . .. . ..... . . . . . . .. . . . . . . . . . . ....... . . . . . ...................................................................... .. . ..... . . . . . .. . ..... . . . . . . . . . . . . . . . ......................................... ......... Pools/MMMF 76.83% $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 City of The Colony Total Portfol io $0 0 ~ ? ~ :.: 80 ::.: :::<1 II ,,::.: ":< :>~::::l :<:;:;:>:j I:>: [U! <;:":.-: >; E':;::>; :.::>: :; ;::1 :. I;::: I>::;:: :;; :'::: > ,>~~:!~f] ;,; ':::;: :" 12/31/2006 3/31/2007 6/30/2007 9/30/2007 12/31/2007 3/31/2008 6/30/2008 9/30/2008 I [] Quarter End Book Value I Adjusted Book Value Comparison June 30, 2008 September 30, 2008 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 10/1/2008 $43,175,932.28 $43,175,932.28 ($14,686,986.15) $28,488,946.13 $28,488,946.13 Texas Daily 10/1/2008 1,031,563.08 1,031,563.08 1,031,563.08 LOGIC 10/1/2008 836,429.62 836,429.62 (203,294.08) 633,135.54 633,135.54 WFMMMF 10/1/2008 128.37 128.37 0.63 129.00 129.00 08=01 FHLB 2/13/2009 2,000,000.00 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 (999,750.00) 08=03 FHLMC 7/28/2011 1,996,500.00 2,000,000.00 1,996,500.00 08=04 FHLB 9/22/2011 1,090,000.00 1,090,000.00 1,090,000.00 08=05 FFCB 9/29/2011 2,000,000.00 2,000,000.00 2,000,000.00 08=06 FFCB 9/29/2011 1,997,000.00 2,000,000.00 1,997,000.00 TOTAL $47,012,490.27 $47,023,708.41 $8,115,063.71 ($15,890,030.23) $39,243,773.75 $39,248,741.89 Market Value Comparison June 30, 2008 September 30, 2008 Ticket Security Original Face/ Market Qtr-to-Qtr Original Face/ Market Number Description Par Value Price Market Value Change Par Value Price Market Value TexPool $43,175,932.28 1.000 $43,175,932.28 ($14,686,986.15) $28,488,946.13 1.000 $28,488,946.13 Texas Daily 1,031,563.08 1,031,563.08 1.000 1,031,563.08 LOGIC 836,429.62 1.000 836,429.62 (203,294.08) 633,135.54 1.000 633,135.54 WFMMMF 128.37 1.000 128.37 0.63 129.00 1.000 129.00 08=01 FHLB 2,000,000.00 99.913 1,998,260.14 (2,000.14) 2,000,000.00 99.813 1,996,260.000 07=16 FHLB 1,000,000.00 100.017 1,000,167.42 (1,000,167.42) 08=03 FHLMC 2,008,280.00 2,000,000.00 100.414 2,008,280.000 08=04 FHLB 1,091,362.50 1,090,000.00 1 00. 125 1,091,362.500 08=05 FFCB 1,988,120.00 2,000,000.00 99.406 1,988,120.000 08=06 FFCB 1,996,880.00 2,000,000.00 99.844 1,996,880.000 TOTAL $47,012,490.27 $47,010,917.83 ($7,776,241.58) $39,243,773.75 $39,234,676.25 Book Value Allocated by Fund Ticket Security Number Description T ex Pool Texas Daily LOGIC WF MMMF FHLB FHLMC FHLB FFCB FFCB 08=01 08=03 08=04 08=05 08=06 System Fund $28,488,946.13 001 2002 C/O September 30, 2008 002 003 2003 2004 2008 C/O C/O C/O 1,031,563.08 206,869.48 163,625.68 262,640.38 129.00 2,011,468.14 1,996,500.00 1,090,000.00 2,000,000.00 1,997,000.00 $37,584,043.27 $206,869.48 $163,625.68 $262,640.38 $1,031,563.08 Market Value Allocated by Fund Ticket Security System 2002 2003 2004 2008 Number Description Fund C/O C/O C/O C/O T exPool $28,488,946.13 Texas Daily 1,031,563.08 LOGIC 206,869.48 163,625.68 262,640.38 WF MMMF 129.00 08=01 FHLB 1,996,260.00 08=03 FHLMC 2,008,280.00 08=04 FHLB 1,091,362.50 08=05 FFCB 1,988,120.00 08=06 FFCB 1,996,880.00 $37,569,977.63 $206,869.48 $163,625.68 $262,640.38 $1,031,563.08 Book Value Allocated by Fund Ticket Security Number Description T exPool LOGIC WF MMMF 08=01 FHLB 07=16 FHLB System Fund $43,175,932.28 001 2002 C/O June 30, 2008 002 003 2003 2004 C/O C/O 412,954.11 162,554.51 260,921.00 128.37 2,011,468.14 999,750.00 $46,187,278.79 $412,954.11 $162,554.51 $260,921.00 Market Value Allocated by Fund Ticket Security System 2002 2003 2004 Number Description Fund C/O C/O C/O T exPool $43,175,932.28 LOGIC 412,954.11 162,554.51 260,921.00 WF MMMF 128.37 08=01 FHLB 1,998,260.14 07=16 FHLB 1,000,167.42 $46,174,488.21 $412,954.11 $162,554.51 $260,921.00 Fund July August September Quarterly No. Fund Name 2008 2008 2008 Totals 100 General Fund 24,665.13 16,385.22 13,067.52 54,117.87 200 Utility Fund 12,624.63 10,002.50 7,399.83 30,026.96 201 Engineering - Inspections 537.01 413.02 367.17 1,317.20 210 U. F. Special Capital Projects 1,150.56 839.76 795.29 2,785.61 213 2004 Revenue Bonds 4,830.59 5,138.35 4,441.62 14,410.56 214 2006 U. F. Cert of Obligation 3,662.82 4,185.15 3,347.99 11,195.96 215 2007 U. F. Cert of Obligation 4,126.10 5,980.94 3,548.05 13,655.09 280 Impact Fees - Water/Sewer 4,054.87 2,562.85 2,034.39 8,652.11 300 Fleet Replacement 191.21 201.97 181.50 574.68 500 General Debt Service Fund 7,077.68 3,944.62 734.40 11,756.70 501 Tax Supported Debt Service 2,836.39 - 506.04 3,342.43 502 Revenue Bond Debt Service 5,214.39 3,350.17 3,400.22 11,964.78 520 Community Complex Debt 875.98 835.25 972.29 2,683.52 604 Economic Dev. Corp. 4A 17,254.07 12,131.09 10,594.22 39,979.38 605 Community Dev. Corp. 4B 6,634.05 3,964.66 1,769.90 12,368.61 700 Court Security Fund 668.81 440.33 432.75 1,541.89 701 Court Technology Fund 299.25 207.98 215.03 722.26 705 Environmental Fund 196.63 172.99 193.43 563.05 715 Hotel/Motel Taxes 985.27 779.84 629.02 2,394.13 720 Lake Park Funds 384.85 311.94 272.36 969.15 723 Special Events Fund 307.09 172.57 220.26 699.92 725 Community Center 44.77 26.29 98.99 170.05 730 Library Grants 21.34 21.11 6.14 48.59 752 Police Forfeited Funds 29.02 25.73 26.97 81.72 753 Police Seized Funds 1.11 0.54 0.69 2.34 800 Capital Projects Administration 1,829.35 1,209.93 1,148.97 4,188.25 815 Impact Fees - Streets 386.88 359.52 357.13 1,103.53 816 Impact Fees - Drainage 161.47 169.09 151.68 482.24 817 Drainage Improvements 284.46 221.24 223.31 729.01 820 Capital Projects Streets 1,672.14 1,319.87 1,327.30 4,319.31 825 Park Improvements 2,667.19 2,299.02 2,581.20 7,547.41 826 Park's Capital Projects 1,079.88 896.19 859.91 2,835.98 827 Five Star Complex 173.76 123.49 132.11 429.36 840 2002 G. F. Cert of Obligations 885.07 547.20 550.28 1,982.55 841 2003 Cert of Obligations 394.28 394.71 400.28 1,189.27 842 2004 Cert of Obligations 929.03 893.36 805.11 2,627.50 843 2006 G. F. Cert of Obligations 207.82 227.66 192.54 628.02 844 2007 G. F. Cert of Obligations 8,736.00 9,763.72 5,774.46 24,274.18 Totals 118,325.68 90,680.43 70,262.12 279,268.23 INTEREST DISTRIBUTION (With Amortization) JULY THROUGH SEPTEMBER 2008 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.