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HomeMy WebLinkAboutResolution No. 2010-069CITY OF THE COLONY, TEXAS RESOLUTION NO. 2010 - OU,(1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING THE JUNE 30, 2010 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 June 30, 2010, 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 June 30, 2010 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 June 30, 2010 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 August, 2010. oe McCou , Mayor ATTEST: A Christie Wilson, City Secretary APPROVED AS TO FORM: Jeff Moore, City Attorney 'wzzrxx ;rr City of The Colony INVESTMENT PORTFOLIO SUMMARY For the Quarter Ended June 30, 2010 The investment portfolio of the City is in compliance with the Public Funds Investment Act and the City Investment Rebecca Lai, Director of Finance Gwen Mansfield, Accounting Strategy Summary: The Federal Open Market Committee (FOMC) maintained the Fed Funds target at a range between 0.00% and 0.25% and have pledged to continue the current policy for the foreseeable future. Investment Pools and short term investments earn +/-0.20%. The stock market has fallen recently on reoccurring domestic and international economic uncertainty. The rate of growth and resulting employment are the main bond market concerns. The yield curve remains steep, but has fallen to lower yields. CDs still provide the best investment option. Asset Type Pools/MMMF/Bank Securities Totals Average Yield (1) Total Portfolio Rolling Three Mo. Treas. Yield Rolling Six Mo. Treas. Yield June 30, 2010 March 31, 2010 Ave. Yield Book Value Market Value Book Value Market Value 0.26% $46,991,342.86 $46,991,342.86 $49,391,321.64 $49,391,321.64 $46,991,342.86 $46,991,342.86 $49,391,321.64 $49,391,321.64 Fiscal Year-to-Date Average Yield (2) 0.26% Total Portfolio 0.26% 0.15% Rolling Three Mo. Treas. Yield 0.11% 0.20% Rolling Six Mo. Treas. Yield 0.20% Average Quarterly TexPool Yield 0.19% (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 1. 4.50 4.00 3.50 3.00 a~ 2.50 - - - 2.00 - - a~ 1.50 1.00 - 0.50 - - 0.00 Treasury Yield Curves o~ 4w~ - - June 30, 2009 March 3l, 2010 -June 30, 2010 ~Z ~ Valley View Consulting, L.L.C. Page 2. US Treasury Historical Yields 7.So 7.00 - - 6.50 - - ILA - 6.00 5.50 - - a~ 5.00 c 4.50 - - 4.00 3.50 p~ 3.00 - - - - - 2.50 - - - 2.00 1.5 0 - - 1.00 - 0.50 0.00 Fp o° o~ oti o~ o°` o`~ OP-0 OP-11 Op~o CPR Op~o Six Month -Two Year Valley View Consulting. L.L.C. p~ o -Ten Year Page 3. S&P 500 8.- 1,750 - - - - - - - - 1,500 - 1,250 - - 1,000 750 500 - 250 - 0 ~C§I (p p0 ~(~K soh ~O~ X01 ~0~ P P P P P P P P P P P P P P P Valley View Consulting, L.L.C. Page 4. Detail of Investment Holdings June 30, 2010 Ticket Investment 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 0.21% 6/30/2010 7/1/2010 $14,623,689.47 $14,623,689.47 1.00 $14,623,689.47 1 0.21% TexPool Prime AAAm 0.28% 6/30/2010 7/1/2010 31,873,071.76 31,873,071.76 1.00 31,873,071.76 1 0.28% Texas Daily AAAm 0.21% 6/30/2010 7/1/2010 180,418.75 180,418.75 1.00 180,418.75 1 0.21% LOGIC AAAm 0.26% 6/30/2010 7/1/2010 314, 033.49 314, 033.49 1.00 314, 033.49 1 0.26% WF Adv Gvt MMMF 0.00% 6/30/2010 7/1/2010 129.39 129.39 1.00 129.39 1 0.00% $46,991,342.86 $46,991,342.86 $46,991,342.86 1 0.26% (1) (2) (1) Weighted average life - For purposes of calculating weighted average life, pool investments are assumed to h ave a one day mat urity. (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 5. Portfolio Composition Securities 0% Page 6. Total Portfolio $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 7 P ,E i P - P ~ ~ °!4 I nnOO~ nnOOA nnOOA no~A nnoOA nnOOV nOOV nOOV nnOOV n(oO~ nnOO~ nnoO~ nnOO~ nn®AO noAO ~\V w\V ®\V Q\~ p~V w\V O\V Q\V w\V A\V ry p\V ~\V (\`1 \"3 0 (v Quarter End Book Value Page 7. Book Value Comparison Ticket Security Number Description Maturity Date March 31, 2010 Original Face/ Par Value Book Value Purchases/ Accretions Amort./Calls/ Sales/Maturities June 30, 2010 Original Face/ Par Value Book Value TexPool 7/1/2010 $16,825,212.49 $16,825,212.49 ($2,201,523.02) $14,623,689.47 $14,623,689.47 TexPool Prime 7/1/2010 31,854,545.38 31,854,545.38 18,526.38 31,873,071.76 31,873,07136 Texas Daily 7/1/2010 333,799.79 333,799.79 (153,381.04) 180,418.75 180,418.75 LOGIC 7/1/2010 377,634.59 377,634.59 (63,601.10) 314,033.49 314,033.49 WF Adv Gvt MMMF 7/1/2010 129.39 129.39 129.39 129.39 TOTAL $49,391,321.64 $49,391,321.64 $18,526.38 ($2,418,505.16) $46,991,342.86 $46,991,342.86 Market Value Comparison March 31, 2010 June 30, 2010 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 $16,825,212.49 1.000 $16,825,212.49 ($2,201,523.02) $14,623,689.47 1.000 $14,623,689.47 TexPool Prime 31,854,545.38 1.000 31,854,545.38 18,526.38 31,873,071.76 1.000 31,873,071.76 Texas Daily 333,799.79 1.000 333,799.79 (153,381.04) 180,418.75 1.000 180,418.75 LOGIC 377,634.59 1.000 377,634.59 (63,601.10) 314,033.49 1.000 314,033.49 WF Adv Gvt MMMF 129.39 1.000 129.39 - 129.39 1.000 129.39 TOTAL $49,391,321.64 $49,391,321.64 ($2,399,978.78) $46,991,342.86 $46,991,342.86 Page 8. INTEREST DISTRIBUTION (With Amortization) Fund No. Fund Name April 2010 May 2010 June 2010 Quarterly Totals 100 General Fund (1,514.48) 1,337.31 1,548.02 1,370.85 200 Utility Fund (821.26) 482.79 679.57 341.10 201 Engineering - Inspections (12.74) 3.08 2.67 (6.99) 210 U. F. Special Capital Projects (3.31) 91.38 112.08 200.15 213 2004 Revenue Bonds (688.86) 41.40 40.07 (607.39) 214 2006 U. F. Cert of Obligation (446.44) 71.68 76.85 (297.91) 215 2007 U. F. Cert of Obligation (562.80) 48.09 55.15 (459.56) 216 2010 U.F. Cert of Obligation 131.30 173.02 211.57 515.89 280 Impact Fees - Water/Sewer (75.39) 142.45 175.59 242.65 300 Fleet Services 7.63 22.35 25.97 55.95 500 General Debt Service Fund 329.23 507.04 631.79 1,468.06 501 Tax Supported Debt Service 446.91 141.01 189.16 777.08 502 Revenue Bond Debt Service 273.75 336.60 432.10 1,042.45 520 Community Complex Debt 51.13 42.23 59.25 152.61 604 Economic Dev, Corp. 4A (1,124.88) 655.36 825.33 355.81 605 Community Dev. Corp. 4B (137.98) 154.03 202.78 218.83 700 Court Security Fund (0.21) 36.95 45.88 82.62 701 Court Technology Fund (6.01) 4.30 5.70 3.99 705 Environmental Fund (8.84) 11.60 15.99 18.75 710 Storm Water Utility (4.12) 18.19 24.47 38.54 715 Hotel/Motel Taxes (83.49) 2.95 8.30 (72.24) 720 Lake Park Funds 319.77 28.05 34.96 382.78 723 Special Events Fund (13.87) 19.56 17.94 23.63 725 Community Center 1.61 4.93 5.12 11.66 730 Library Grants 1.17 1.35 1.67 4.19 752 Police Forfeited Funds 1.62 2.06 2.27 5.95 753 Police Seized Funds 0.41 2.23 3.11 5.75 754 Citizen's Donations 0.08 0.10 0.15 0.33 800 Capital Projects Administration (100.43) 43.63 48.53 (8.27) 815 Impact Fees - Streets (3.59) 17.14 20.23 33.78 816 Impact Fees - Drainage (16.23) 3.69 4.47 (8.07) 817 Drainage Improvements (8.97) 0.03 0.04 (8.90) 820 Capital Projects Streets 53.16 116.74 140.30 310.20 822 TxDot RTR/Denton Co. 338.98 435.85 535.00 1,309.83 823 Denton Co. Street Projects 0.46 - - 0.46 825 Park Improvements (210.11) 98.45 120.33 8.67 826 Park's Capital Projects (45.13) 34.82 42.85 32.54 827 Five Star Complex (11.91) 8.44 8.37 4.90 841 2003 Cert of Obligations 24.56 28.02 21.20 73.78 842 2004 Cert of Obligations 10.98 17.41 20.43 48.82 843 2006 G. F. Cert of Obligations (30.67) 2.75 3.20 (24.72) 844 2007 G. F. Cert of Obligations (1,445.39) 262.00 310.31 (873.08) 845 2008 G. F. Cert of Obligations 53.02 53.73 53.58 160.33 846 2010 G. F. Cert of Obligations 686.70 904.10 1,062.23 2,653.03 895 G.F. Special Capital Projects 18.51 24.42 30.08 73.01 Totals (4,626.13) 6,433.31 7,864.66 9,661.84 Book & Market Value Allocated by Fund June 30, 2010 001 002 003 Ticket Investment System 2002 2003 2004 2008 Number Description Fund C/o C/o C/o C/o TexPool $14,623,689.47 TexPool Prime 31,873,071.76 Texas Daily 180,418.75 LOGIC 131,655.99 97,161.40 85,216.10 WF Adv Gvt MMMF 129.39 $46,496,890.62 $131,655.99 $97,161.40 $85,216.10 $180,418.75 Page 10. Book Value Allocated by Fund Ticket Investment System Number Description Fund 16,825,212.49 31,854,545.38 TexPool TexPool Prime Texas Daily LOGIC WF Adv Gvt MMMF 333,799.79 129.39 March 31, 2010 001 002 003 2002 2003 2004 2008 C/o C/o C/o C/o 131,602.74 160,862.66 85,169.19 $48,679,887.26 $131,602.74 $160,862.66 $85,169.19 $333,799.79 Market Value Allocated by Fund Ticket Investment System 2002 2003 2004 2008 Number Description Fund C/o C/o C/o C/o TexPool $16,825,212.49 TexPool Prime 31,854,545.38 Texas Daily 333,799.79 LOGIC 131,602.74 160,862.66 85,169.19 WF Adv Gvt MMMF 129.39 $48,679,887.26 $131,602.74 $160,862.66 $85,169.19 $333,799.79 Page 11. 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 12.