HomeMy WebLinkAboutResolution No. 09-038
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 09- 009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, ACCEPTING THE MARCH 31ST, 2009 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 March 31, 2009, have been presented to the City Council; and
WHEREAS, the City Council has detennined 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, 2009 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, 2009 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 15th day of June, 2009.
r'`F
~L
e McC = , rry, Mayor
AT ES
Christie Wilson, City Secretary
APPRO D AS O RM:
Ro ert E. Hager, Attorney
City of The Colony
INVESTMENT PORTFOLIO SUMMARY
For the Quarter Ended
March 31, 2009
The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City
nvestment Percy. ,
n
r
z=_s~
Rebecca Koo, Director of Finance
Gwen Mansfield, Accounting Manager
Page 1.
Strategy Summary:
First quarter of 2009 had the government throwing everything into the mix to stimulate the economy. Never before has there been
such a coordinated effort. Consumers have lost confidence in their ability to spend, creditors have lost the stomach to lend, and
investors have lost faith in the regulatory system. This all creates an extreme headwind to any kind of sustainable growth, and may
tend to move the economy backwards. The Fed Funds target is a range from 0.00% to 0.25%. Approximate yields on treasury
securities range from 0.15% at three months to 0.90% at two years. Continuing to ladder available funds could enhance interest
income. Bank CDs remain the most viable option.
Quarter End Results by Investment Category:
March 31, 2009 December 31, 2008
Asset Type Ave. Yield Book Value Market Value Book Value Market Value
Pools/MMMF 0.66% $31,513,954.55 $31,513,954.55 $23,636,572.65 $23,636,572.65
Securities 4.01% 11,067,160.00 11,201,410.17 13,078,628.14 13,246,606.00
Totals $42,581,114.55 $42,715,364.72 $36,715,200.79 $36,883,178.65
Average Yield (1) Fiscal Year-to-Date Average Yield (2)
Total Portfolio 1.53% Total Portfolio 1.91%
Rolling Three Mo. Treas. Yield 0.22% Rolling Three Mo. Treas. Yield 0.28%
Rolling Six Mo. Treas. Yield 0.59% Rolling Six Mo. Treas. Yield 0.96%
Average Quarterly TexPool Yield 1.03%
(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.
Page 2.
Treasury Yield Curves
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
March 31, 2008December 31, 2008 - March 31, 2009
Valley View Consulting, L.L.C.
Page 3.
US Treasury Historical Yields
7.50
7.00 m
6.50
6.00 N - -
5.50
u
5.00 - - -
4.50 ;
4.00 - - -
3.50 - - - - -
a 3.00
2.50
2.00 '
1.50
1.00
0.50
0.00
Six Month --Two Year Ten Year
Valley View Consulting. L.L.C.
Page 4.
S&P 500
1,750
1,500
1,250
1,000
750
500
250
0
o~D 0~ 0 0~ ~ (RIb O°~ 00 O~ Off' 00 Off` O~ OHO O~ 00
Cb~ 0
O\A Cb\~ c8\11 (b\ (b~ R0\A (8\~ 00\~ `b\~ `b\
Valley View Consulting, L.L.C.
Page 5.
Detail of Security Holdings
March 31, 2009
Ticket Security Coupon/ Settlement Maturity Call Original Facet Book Market Market Life
Number Description Rating Discount Date Date Date Par Value Value Price Value (days) Yield
TexPool AAAm 0.58% 3/31/2009 4/1/2009 $17,655,671.93 $17,655,671.93 1.00 $17,655,671.93 1 0.58%
TexPool Prime AAAm 0.77% 3/31/2009 4/1/2009 12,520,389.30 12,520,389.30 1.00 12,520,389.30 1 0.77%
Texas Daily AAAm 0.68% 3/31/2009 4/1/2009 915,954.26 915,954.26 1.00 915,954.26 1 0.68%
LOGIC AAAm 0.82% 3/31/2009 4/1/2009 421,939.06 421,939.06 1.00 421,939.06 1 0.82%
08=08 FHLMC AAA 4.000% 10/24/2008 6/3/2011 6/3/2009 2,000,000.00 1,993,000.00 100.50 2,010,000.00 794 4.14%
08=03 FHLMC AAA 4.000% 7/11/2008 7/28/2011 7/28/2009 2,000,000.00 1,996,500.00 100.78 2,015,536.00 849 4.06%
08=04 FHLB AAA 3.950% 9/1/2008 9/22/2011 9/22/2009 1,090,000.00 1,090,000.00 101.28 1,103,966.17 905 3.95%
08=05 FFCB AAA 4.050% 9/29/2008 9/29/2011 9/29/2009 2,000,000.00 2,000,000.00 101.22 2,024,376.00 912 4.05%
08=06 FFCB AAA 3.750% 9/1812008 9/29/2011 9/29/2009 2,000,000.00 1,997,000.00 101.13 2,022,500.00 912 3.80%
08=07 FHLMC AAA 3.875% 10/24/2008 9/30/2011 9/30/2010 2,000,000.00 1,990,660.00 101.25 2,025,032.00 913 4.04%
$42,603,954.55 $42,581,114.55 $42,715,364.72 229 1.53%
(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.
Page 6.
City of The Colony
Portfolio Composition
Securities
25.99%
r
Pools/MMMF
74.01%
Page 7.
City of The Colony
Total Portfolio
$60,000,000
$50,000,000 - 77
$40,000,000
77
$30,000,000
$20,000,000
$10,000,000
$0
O0o 00'l 00-\ oo'l 00A oo`b 00`5 000 000 04e
\0►~\~' \00\x' \00\~' \,b\n~'~\~ \n~0\~ \,rb \0'~\f
13 Quarter End Book Value
Page 8.
Book Value Comparison
December 31, 2008 March 31, 2009
Ticket Security Maturity Original Face/ Purchases/ Amort./Calls/ Original Face/
Number Description Date Par Value Book Value Accretions Sales/Maturities Par Value Book Value
TexPool 4/1/2009 $22,073,456.75 $22,073,456.75 ($4,417,784.82) $17,655,671.93 $17,655,671.93
TexPool Prime 4/1/2009 12,520,389.30 12,520,389.30 12,520,389.30
Texas Daily 4/1/2009 927,179.33 927,179.33 (11,225.07) 915,954.26 915,954.26
LOGIC 4/1/2009 635,936.57 635,936.57 (213,997.51) 421,939.06 421,939.06
08=01 FHLB 2/13/2009 2,000,000.00 2,011,468.14 (2,011,468.14)
08=08 FHLMC 6/3/2011 2,000,000.00 1,993,000.00 2,000,000.00 1,993,000.00
08=03 FHLMC 7/28/2011 2,000,000.00 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 1,090,000.00
08=05 FFCB 9/29/2011 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
08=06 FFCB 9/29/2011 2,000,000.00 1,997,000.00 2,000,000.00 1,997,000.00
08=07 FHLMC 9/30/2011 2,000,000.00 1,990,660.00 2,000,000.00 1,990,660.00
TOTAL $36,726,672.65 $36,715,200.79 $12,520,389.30 ($6,654,475.54) $42,603,954.55 $42,581,114.55
Market Value Comparison
December 31, 2008 March 31, 2009
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 $22,073,456.75 1.000 $22,073,456.75 ($4,417,784.82) $17,655,671.93 1.000 $17,655,671.93
TexPool Prime 12,520,389.30 12,520,389.30 1.000 12,520,389.30
Texas Daily 927,179.33 1.000 927,179.33 (11,225.07) 915,954.26 1.000 915,954.26
LOGIC 635,936.57 1.000 635,936.57 (213,997.51) 421,939.06 1.000 421,939.06
08=01 FHLB 2,000,000.00 100.269 2,005,382.700 (2,005,382.70)
08=08 FHLMC 2,000,000.00 100.338 2,006,755.120 3,244.88 2,000,000.00 100.500 2,010,000.000
08=03 FHLMC 2,000,000.00 101.079 2,021,579.400 (6,043.40) 2,000,000.00 100.777 2,015,536.000
08=04 F H LB 1, 090, 000.00 101.285 1,104, 010.980 (44.81) 1, 090, 000.00 101.281 1,103, 966.170
08=05 FFCB 2,000,000.00 101.357 2,027,138.040 (2,762.04) 2,000,000.00 101.219 2,024,376.000
08=06 FFCB 2,000,000.00 101.142 2,022,848.580 (348.58) 2,000,000.00 101.125 2,022,500.000
08=07 FHLMC 2,000,000.00 102.945 2,058,891.180 2,000,000.00 101.252 2,025,032.000
TOTAL $36,726,572.65 $36,883,178.65 $5,832,186.07 $42,603,954.55 $42,715,364.72
Page 9.
Book Value Allocated by Fund March 31, 2009
001 002 003
Ticket Security System 2002 2003 2004 2008
Number Description Fund C/o C/o C/o C/o
TexPool $17,655,671.93
TexPool Prime 12,520,389.30
Texas Daily 915,954.26
LOGIC 172,117.81 164,965.71 84,855.54
08=08 FHLMC 1,993,000.00
08=03 FHLMC 1,996,500.00
08=04 FHLB 1,090,000.00
08=05 FFCB 2,000,000.00
08=06 FFCB 1,997,000.00
08=07 FHLMC 1,990,660.00
$41,243,221.23 $172,117.81 $164,965.71 $84,855.54 $915,954.26
Market Value Allocated by Fund
Ticket Security System 2002 2003 2004 2008
Number Description Fund C/o C/o C/o C/o
TexPool $17,655,671.93
TexPool Prime 12,520,389.30
Texas Daily 915,954.26
LOGIC 172,117.81 164,965.71 84,855.54
08=08 FHLMC 2,010,000.00
08=03 FHLMC 2,015,536.00
08=04 FHLB 1,103,966.17
08=05 FFCB 2,024,376.00
08=06 FFCB 2,022,500.00
08=07 FHLMC 2,025,032.00
$41,377,471.40 $172,117.81 $164,965.71 $84,855.54 $915,954.26
Page 10.
Book Value Allocated by Fund December 31, 2008
001 002 003
Ticket Security System 2002 2003 2004 2008
Number Description Fund C/o C/o C/o C/o
TexPool $22,073,456.75
Texas Daily 927,179.33
LOGIC 207,251.77 164,554.14 264,130.66
08=01 FHLB 2,011,468.14
08=08 FHLMC 1,993,000.00
08=03 FHLMC 1,996,500.00
08=04 FHLB 1,090,000.00
08=05 FFCB 2,000,000.00
08=06 FFCB 1,997,000.00
08=07 FHLMC 1,990,660.00
$35,152,084.89 $207,251.77 $164,554.14 $264,130.66 $927,179.33
Market Value Allocated by Fund
Ticket Security System 2002 2003 2004 2008
Number Description Fund C/o C/o C/o C/o
TexPool $22,073,456.75
Texas Daily 927,179.33
LOGIC 207,251.77 164,554.14 264,130.66
08=01 FHLB 2,005,382.70
08=.08 FHLMC 2,006,755.12
08=03 FHLMC 2,021,579.40
08=04 FHLB 1,104,010.98
08=05 FFCB 2,027,138.04
08=06 FFCB 2,022,848.58
08=07 FHLMC 2,058,891.18
$35,320,062.75 $207,251.77 $164,554.14 $264,130.66 $927,179.33
Page 11.
INTEREST DISTRIBUTION (With Amortization)
JANUARY THROUGH MARCH 2009
Fund January February March , Quarterly
No. Fund Name 2009 2009 2009 Totals
100 General Fund 17,545.07 8,951.05 36,235.38 62,731.50
200 Utility Fund 5,083.10 4,028.38 17,365.42 26,476.90
201 Engineering - Inspections 201.07 187.77 305.51 694.35
210 U. F. Special Capital Projects 1,070.44 491.41 1,258.15 2,820.00
213 2004 Revenue Bonds 906.57 2,098.47 9,070.24 12,075.28
214 2006 U. F. Cert of Obligation 665.60 1,960.50 6,626.01 9,252.11
215 U.F. 2007 Cert of Obligation 768.50 3,842.75 9,419.41 14,030.66
280 Impact Fees - Water/Sewer 2,160.72 1,150.62 3,026.21 6,337.55
300 Fleet Services 57.24 80.41 162.18 299.83
500 General Debt Service Fund 5,210.83 3,615.11 1,375.94 10,201.88
501 Tax Supported Debt Service 1,669.03 - 76.89 1,745.92
502 Revenue Bond Debt Service 1,024.69 1,723.34 744.57 3,492.60
520 Community Complex Debt 143.38 173.31 354.29 670.98
604 Economic Dev. Corp. 4A 9,648.05 4,536.82 22,904.32 37,089.19
605 Community Dev. Corp. 4B 4,452.20 1,865.51 4,507.91 10,825.62
700 Court Security Fund 182.07 190.98 463.91 836.96
701 Court Technology Fund 111.18 93.64 158.56 363.38
710 Storm Water Utility 158.91 241.77 323.45 724.13
715 Hotel/Motel Taxes 559.03 237.67 1,114.65 1,911.35
720 Lake Park Funds 145.71 117.99 439.54 703.24
723 Special Events Fund 44.22 51.64 366.51 462.37
725 Community Center 9.40 8.13 36.59 54.12
730 Library Grants 1.22 3.53 9.01 13.76
752 Police Forfeited Funds 5.32 4.55 4.39 14.26
753 Police Seized Funds 1.17 1.02 0.59 2.78
800 Capital Projects Administration 213.15 282.36 1,929.21 2,424.72
815 Impact Fees - Streets 160.07 240.10 258.43 658.60
816 Impact Fees - Drainage 45.64 70.35 280.87 396.86
817 Drainage Improvements 484.64 93.90 161.70 740.24
820 Capital Projects Streets 1,942.24 507.50 1,073.41 3,523.15
825 Park Improvements 642.17 309.24 3,434.11 4,385.52
826 Park's Capital Projects 498.30 353.53 1,083.18 1,935.01
827 Five Star Complex 358.68 56.55 263.01 678.24
840 2002 G. F. Cert of Obligations 227.16 136.60 127.75 491.51
841 2003 Cert of Obligations 192.85 132.65 133.55 459.05
842 2004 Cert of Obligations 307.78 212.42 240.51 760.71
843 2006 G. F. Cert of Obligations 23.82 87.55 396.36 507.73
844 2007 G. F. Cert of Obligations 421.83 4,585.07 23,909.28 28,916.18
845 2008 G. F. Cert of Obligations 881.61 631.16 574.18 2,086.95
895 G. F. Special Capital Projects - - 274.17 274.17
Totals 58,311.21 43,409.97 150,753.38 252,474.56
Page 12.
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.
Page 13.