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Home My WebLink AboutResolution No. 09-088 CITY OF THE COLONY, TEXAS RESOLUTION NO. 09-( Jff A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING THE SEPTEMBER 30TH, 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 September 30, 2009, 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, 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 September 30, 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 1st day of December, 2009. 2!!~ G J e McCou , Mayor ATTEST 9 < < CAfi`stie Wilson, City Secretary APPRO E ORM: 1&Wf/ Robert E. Hager, ty Attorney City of The Colony INVESTMENT PORTFOLIO SUMMARY For the Quarter Ended September 30, 2009 The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City Investment Polic . Rebecca Koo, Director of Finance O Gwen Mansfield, Accounting Man er Page 1. Strategy Summary: The Federal Open Market Committee (FOMC) maintained the Fed Funds target at a range between 0.00% and 0.25% and have recently indicated that they will maintain rates in this range for an "extended period." Investment Pools and short term investment yields have continued to fall and are currently earning less than 0.30%. The stock market has drifted slightly higher. Some economic data and activity projections look for the recession bottoming later this year. The yield curve is still very positive, with CDs the best option. Re-investment of maturities and excess funds could enhance interest income. September 30, 2009 June 30, 2009 Asset Type Ave. Yield Book Value Market Value Book Value Market Value Pools/MMMF/Bank 0.26% $28,788,322.74 $28,788,322.74 $28,544,521.38 $28,544,391.99 Securities 9,074,160.00 9,147,455.00 Totals $28,788,322.74 $28,788,322.74 $37,618,681.38 $37,691,846.99 Average Yield (1) Fiscal Year-to-Date Average Yield (2) Total Portfolio 0.26% Total Portfolio 1.35% Rolling Three Mo. Treas. Yield 0.16% Rolling Three Mo. Treas. Yield 0.22% Rolling Six Mo. Treas. Yield 0.28% Rolling Six Mo. Treas. Yield 0.64% Average Quarterly TexPool Yield 0.69% (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 - - i 3.00 2.50 - - - a~o 2.00 a~ 1.50 1.00 - - - - 0.50 0.00 September 30, 2008 - - June 30, 2009 September 30, 2009 Valley View Consulting, L.L.C. Page 3. US Treasury Historical Yields 7.50 7.00 6.50 6.00 - - 5.50 ~ 5.00 - - - 4.50 - 4.00 - - Y - 3.50 - - - - - - a 3.00 - - 2.50 - 2.00 - - - 1.50 1.00 0.50 - 0.00 ~of~1 q °l OOOOti00ti 00~ 01rL`~,`lr`L 00 00 0 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 -Six Month -Two Year -Ten Year Valley View Consulting. L.L.C. Page 4. S&P 500 1,750 - 1,500 R 1,250 - - 1,000 750 500 250 0 cp 01) 0A 0) 00 ON 00' Ory' Off` OD OHO O~ 04' 0 0 0 0 0 O O O O O O O O O O A\T Valley View Consulting, L.L.C. Page 5. Detail of Security Holdings September 30, 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 0.28% 9/30/2009 10/1/2009 $9,318,034.41 $9,318,034.41 1.00 $9,318,034.41 1 0.28% TexPool Prime AAAm 0.36% 9/30/2009 10/1/2009 12,552,580.78 12,552,580.78 1.00 12,552,580.78 1 0.36% Texas Daily AAAm 0.37% 9/30/2009 10/1/2009 366,372.96 366,372.96 1.00 366,372.96 1 0.37% LOGIC AAAm 0.38% 9/30/2009 10/1/2009 351, 921.99 351, 921.99 1.00 351, 921.99 1 0.38% WF Adv Gvt MMMF 0.01% 9/30/2009 10/1/2009 129.39 129.39 1.00 129.39 1 0.01% Wells Fargo Account 0.00% 9/30/2009 10/1/2009 6,199,283.21 6,199,283.21 1.00 6,199,283.21 1 0.00% $28,788,322.74 $28,788,322.74 $28,788,322.74 1 0.26% (1) (Z) (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. Portfolio Composition Securities 0.00% L4 r r 0 Pools/MMMF/Bank 100.00% Page 7. Total Portfolio - - - - - - - - - - $60,000,000 $50,000,000 - - - - $40,000,000 - - $30,000,000 - - - $20,000,000 $10,000,000 - $0 OHO O~ OA 00 O`b 00 O°l ~~~O ~~~'O p~0O p~~O ►~~0O ~~~O p~~O p~0O ~~0O ~~0O p~~O p~0O OHO C~\5 0\'b 0~3 0\3 O c43 0\3 °P ❑Quarter End Book Value Page 8. Book Value Comparison June 30, 2009 September 30, 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 10/1/2009 $15,199,801.79 $15,199,801.79 ($5,881,767.38) $9,318,034.41 $9,318,034.41 TexPool Prime 10/1/2009 12,539,308.63 12,539,308.63 13,272.15 12,552,580.78 12,552,580.78 Texas Daily 10/1/2009 382,696.96 382,696.96 (16,324.00) 366,372.96 366,372.96 LOGIC 10/1/2009 422,584.61 422,584.61 (70,662.62) 351,921.99 351,921.99 WF Adv Gvt MMMF 1011/2009 129.39 129.39 129.39 129.39 Wells Fargo Account 10/1/2009 6,199,283.21 6,199,283.21 6,199,283.21 08=03 FHLMC 7/28/2011 2,000,000.00 1,996,500.00 (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 2,000,000.00 1,997,000.00 (1,997,000.00) 08=07 FHLMC 9/30/2011 2,000,000.00 1,990,660.00 (1,990,660.00) TOTAL $37,634,521.38 $37,618,681.38 $6,212,555.36 ($15,042,914.00) $28,788,322.74 $28,788,322.74 Market Value Comparison June 30, 2009 September 30, 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 $15,199,801.79 1.000 $15,199,801.79 ($5,881,767.38) $9,318,034.41 1.000 $9,318,034.41 TexPool Prime 12,539,308.63 1.000 12,539,308.63 13,272.15 12,552,580.78 1.000 12,552,580.78 Texas Daily 382,696.96 1.000 382,696.96 (16,324.00) 366,372.96 1.000 366,372.96 LOGIC 422,584.61 1.000 422,584.61 (70,662.62) 351,921.99 1.000 351,921.99 WF Adv Gvt MMMF 129.39 1.000 129.39 - 129.39 1.000 129.39 Wells Fargo Account 6,199,283.21 6,199,283.21 1.000 6,199,283.21 08=03 FHLMC 2,000,000.00 100.777 2,004,500.000 (2,004,500.00) 08=04 FHLB 1,090,000.00 101.281 1,098,175.000 (1,098,175.00) 08=05 FFCB 2,000,000.00 101.219 2,015,000.000 (2,015,000.00) 08=06 FFCB 2,000,000.00 101.125 2,014,380.000 (2,014,380.00) 08=07 FHLMC 2,000,000.00 101.252 2,015,400.000 (2,015,400.00) TOTAL $37,634,521.38 $37,691,976.38 ($8,903,653.64) $28,788,322.74 $28,788,322.74 Page 9. INTEREST DISTRIBUTION (With Amortization) Fund July August September Quarterly No. Fund Name 2009 2009 2009 Totals 100 General Fund 9,712.65 1,112.20 35,420.70 46,245.55 200 Utility Fund 4,519.71 966.41 16,636.64 22,122.76 201 Engineering - Inspections 85.02 28.84 245.18 359.04 210 U. F. Special Capital Projects 366.94 121.43 1,109.97 1,598.34 213 2004 Revenue Bonds 2,259.73 0.81 9,191.10 11,451.64 214 2006 U. F. Cert of Obligation 2,524.37 217.51 6,653.33 9,395.21 215 2007 U. F. Cert of Obligation 3,005.68 - 9,409.71 12,415.39 280 Impact Fees - Water/Sewer 901.35 289.71 2,746.43 3,937.49 300 Fleet Services 58.54 28.03 142.74 229.31 500 General Debt Service Fund 2,657.73 327.31 226.52 3,211.56 501 Tax Supported Debt Service 308.14 - 153.92 462.06 502 Revenue Bond Debt Service 2,195.24 321.48 436.27 2,952.99 520 Community Complex Debt 148.67 86.57 358.62 593.86 604 Economic Dev. Corp. Type A 6,022.93 749.23 23,486.30 30,258.46 605 Community Dev. Corp. Type B 1,818.97 256.50 4,429.78 6,505.25 700 Court Security Fund 139.62 46.43 425.50 611.55 705 Environmental Fund 71.27 12.92 275.26 359.45 710 Storm Water Utility 49.75 - 222.00 271.75 715 Hotel/Motel Taxes 280.38 26.21 1,095.90 1,402.49 720 Lake Park Funds 107.67 29.09 354.50 491.26 723 Special Events Fund 92.63 - 408.41 501.04 725 Community Center 13.23 3.10 47.13 63.46 730 Library Grants 336 2.26 4.22 9.84 752 Police Forfeited Funds 0.41 0.39 0.47 1.27 753 Police Seized Funds 0.57 3.08 2.18 5.83 800 Capital Projects Administration 564.71 104.67 1,988.63 2,658.01 815 Impact Fees - Streets 86.88 12.55 247.98 347.41 816 Impact Fees - Drainage 77.40 13.95 276.03 367.38 817 Drainage Improvements 41.48 - 119.36 160.84 820 Capital Projects Streets 399.03 305.31 951.27 1,655.61 825 Park Improvements 768.48 - 3,674.95 4,443.43 826 Park's Capital Projects 278.57 50.03 987.87 1,316.47 827 Five Star Complex 72.80 12.05 267.32 352.17 840 2002 G. F. Cert of Obligations - - - - 841 2003 G. F. Cert of Obligations 71.99 60.96 87.99 220.94 842 2004 G. F. Cert of Obligations 114.85 93.11 131.49 339.45 843 2006 G. F. Cert of Obligations 197.89 0.48 425.76 624.13 844 2007 G. F. Cert of Obligations 6,393.88 173.34 25,150.11 31,717.33 845 2008 G. F. Cert of Obligations 135.96 130.61 113.88 380.45 895 G. F. Special Capital Projects 29.44 74.45 49.53 153.42 Totals 46,609.31 5,664.81 148,078.63 200,352.75 Page 10. Book Value Allocated by Fund September 30, 2009 001 002 003 Ticket Security System 2002 2003 2004 2008 Number Description Fund C/O C/O C/O C/O TexPool $9,318,034.41 TexPool Prime 12,552,580.78 Texas Daily 366,372.96 LOGIC 131,456.33 135,391.23 85,074.43 WF Adv Gvt MMMF 129.39 Wells Fargo Account 6,199,283.21 $28,070,027.79 $131,456.33 $135,391.23 $85,074.43 $366,372.96 Market Value Allocated by Fund Ticket Security System 2002 2003 2004 2008 Number Description Fund C/O C/O C/O C/O TexPool $9,318,034.41 TexPool Prime 12,552,580.78 Texas Daily 366,372.96 LOGIC 131,456.33 135,391.23 85,074.43 WF Adv Gvt MMMF 129.39 Wells Fargo Account 6,199,283.21 $28,070,027.79 $131,456.33 $135,391.23 $85,074.43 $366,372.96 Page 11. Book Value Allocated by Fund June 30, 2009 001 002 003 Ticket Security System 2002 2003 2004 2008 Number Description Fund C/o C/o C/o C/o TexPool $15,199,801.79 TexPool Prime 12,539,308.63 Texas Daily 382,696.96 LOGIC 172,381.14 165,218.10 84,985.37 WF Adv Gvt MMMF 129.39 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 $36,813,399.81 $172,381.14 $165,218.10 $84,985.37 $382,696.96 Market Value Allocated by Fund Ticket Security System 2002 2003 2004 2008 Number Description Fund C/o C/o C/o C/o TexPool $15,199,801.79 TexPool Prime 12,539,308.63 Texas Daily 382,696.96 LOGIC 172,381.14 165,218.10 84,985.37 WF Adv Gvt MMMF 129.39 08=03 FHLMC 2,004,500.00 08=04 FHLB 1,098,175.00 08=05 FFCB 2,015,000.00 08=06 FFCB 2,014,380.00 08=07 FHLMC 2,015,400.00 $36,886,694.81 $172,381.14 $165,218.10 $84,985.37 $382,696.96 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.