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HomeMy WebLinkAboutResolution No. 2011-054 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING THE JUNE 30, 2011 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, 2011, 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, 2011 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, 2011 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 16th day of August, 2011. oe McCo rry, Mayor A ~S - f 10- Christie Wilson, City Secretary ° APPROVED AS TO FORM: Jeff Moore)City Attorney cYLYi-,~]"D a City of The Colony INVESTMENT PORTFOLIO SUMMARY For the Quarter Ended June 30, 2011 The investment portfolio o e City is in compliance with the Public Funds Investment Act and the City Investment Policy. Tim Miller ZE utive Director oGwen Mansfield, Accounting Manag r Strategy Summary: The Federal Open Market Committee (FOMC) continued the Fed Funds target range between 0.00% and 0.25% (actual Fed Funds traded +/-10bps). The $600 billion Quantitative Easing II government security purchases are almost complete. Recent data reflects uncertain economic growth trends (domestic and international). The stock market dipped but is attempting to recover. The European and Middle East situations complicate near-term outlooks. Short-term yields provide limited earnings. Continuing to project cash flows and laddering where appropriate will provide the best earnings opportunity. June 30, 2011 March 31, 2011 Asset Type Ave. Yield Book Value Market Value Book Value Market Value Pools/MMMF/Bank 0.10% $48,898,494.42 $48,898,494.42 $55,327,480.44 $55,327,480.44 Securities Totals $48,898,494.42 $48,898,494.42 $55,327,480.44 $55,327,480.44 Average Yield (1) Fiscal Year-to-Date Average Yield (2) Total Portfolio 0.10% Total Portfolio 0.15% Rolling Three Mo. Treas. Yield 0.05% Rolling Three Mo. Treas. Yield 0.10% Rolling Six Mo. Treas. Yield 0.14% Rolling Six Mo. Treas. Yield 0.17% Average Quarterly TexPool Yield 0.13% (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. Treasury Yield Curves 4.00 3.50 - 3.00 - - 2.50 - - - - - 2.00 - - - - - - - - 1.50 - - A.a 1.00 Zoe ~'.000;00e' 0.50 _00001~ - 0.00 - IN. "'June 30, 2010 -March 31, 2011 -June 30, 2011 Valley View Consulting, L.L.C. Page 2. US Treasury Historical Yields 7.50 7.00 - - - - - - - - - - 6.50 - - 6.00 - - 5.50 - - 5.00 - - - 4.50 - - - - - - c 4.00 - - - - - - - 3.50 - - a~ 3.00 - - - - a~ P-+ 2.50 - 2.00 - 1.50 - 1.00 - - - - - - - 0.50 - - - 0.00 d Six Month T-gill ® Two Year T-Note Ten Year T-Note Valley View Consulting, L.L.C. Page 3. S&P 500 - - 1,750 1,500 1,250 1,000 750 - - - 500 - - 250 0- P 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, 2011 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 0.08% 6/30/2011 7/1/2011 $22,154,261.76 $22,154,261.76 1.00 $22,154,261.76 1 0.08% TexPool Prime AAAm 0.13% 6/30/2011 7/1/2011 25,564,923.64 25,564,923.64 1.00 25,564,923.64 1 0.13% Texas Daily AAAm 0.09% 6/30/2011 7/1/2011 1,043,156.97 1,043,156.97 1.00 1,043,156.97 1 0.09% LOGIC AAAm 0.17% 6/30/2011 7/1/2011 136,022.66 136,022.66 1.00 136,022.66 1 0.17% WF Adv Gvt MMMF 0.00% 6/30/2011 7/1/2011 129.39 129.39 1.00 129.39 1 0.00% $48,898,494.42 $48,898,494.42 $48,898,494.42 1 0.10% (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 5. Total Portfolio $60,000,000 - - - - - $50,000,000 - $40,000,000 - - $30,000,000 $20,000,000 _ ~i $10,000,000 - - $0 00 O~ 1 OA O~ Oq' 00 Oq' 00 O°~ O°~ O°~ O°~ ^O ~O ~O ~O NN ~N ~O L0 61 ~O ~O ~O ~O ~O ~O L0 f ~O ~O L0 ~O ~O ~O yO ~O 3`\ O~\ 00\ 00\ O~\ ~N\ 00\ pO\ O~\ ~N\ Z\ p\ ~N\ O~\ 4 00\ O~\ p~\ 00\ OQuarter End Book Value Page 6. Portfolio Composition Securities 0% Fd J < y Pools/MMMF/Bank 100% Page 7. Book Value Comparison March 31, 2011 June 30, 2011 Ticket Maturity Original Face/ Purchases/ Amort./Calls/ Original Face/ Number Description Date Par Value Book Value Accretions Sales/Maturities Par Value Book Value TexPool 7/1/2011 $25,755,464.03 $25,755,464.03 $ - $ (3,601,202.27) $22,154,261.76 $ 22,154,261.76 TexPool Prime 7/1/2011 27,408,582.02 27,408,582.02 - (1,843,658.38) 25,564,923.64 25,564,923.64 Texas Daily 7/1/2011 2, 024, 057.65 2, 024, 057.65 - (980, 900.68) 1,043,156.97 1,043,156.97 LOGIC 7/1/2011 139,247.35 139,247.35 - (3,224.69) 136,022.66 136,022.66 WF Adv Gvt MMMF 7/1/2011 129.39 129.39 - - 129.39 129.39 TOTAL $ 55,327,480.44 $ 55,327,480.44 $ - $ (6,428,986.02) $ 48,898,494.42 $ 48,898,494.42 Market Value Comparison March 31, 2011 June 30, 2011 Ticket Original Face/ Market Qtr-to-Qtr Original Face/ Market Number Description Par Value Price Market Value Change Par Value Price Market Value TexPool $ 25,755,464.03 1.00 $25,755,464.03 $(3,601,202.27) $22,154,261.76 1.00 $ 22,154,261.76 TexPool Prime 27, 408, 582.02 1.00 27,408, 582.02 (1, 843, 658.38) 25, 564, 923.64 1.00 25, 564, 923.64 Texas Daily 2, 024, 057.65 1.00 2, 024, 057.65 (980, 900.68) 1,043,156.97 1.00 1,043,156.97 LOGIC 139,247.35 1.00 139,247.35 (3,224.69) 136,022.66 1.00 136,022.66 WF Adv Gvt MMMF 129.39 1.00 129.39 - 129.39 1.00 129.39 TOTAL $ 55,327,480.44 $55,327,480.44 $(6,428,986.02) $48,898,494.42 $ 48,898,494.42 Page 8. Book and Market Value Allocated by Fund June 30, 2011 Ticket System 2002 2003 2008 2010 Number Description Fund C/O C/O C/O C/O TexPool $ 22,154,261.76 TexPool Prime 25,564,923.64 Texas Daily 156,723.08 886,433.89 LOGIC 131,958.68 4,063.98 WF Adv Gvt MMMF 129.39 $ 47,719,314.79 $ 131,958.68 $ 4,063.98 $ 156,723.08 $ 886,433.89 Page 9. Book and Market Value Allocated by Fund March 31, 2011 Ticket System 2002 2003 2004 2008 2010 Number Description Fund C/O C/O C/O C/O C/O TexPool $ 25,755,464.03 TexPool Prime 27,408,582.02 Texas Daily 162,165.39 1,861,892.26 LOGIC 131,898.46 7,348.89 - WF Adv Gvt MMMF 129.39 $ 53,164,175.44 $ 131,898.46 $ 7,348.89 $ - $ 162,165.39 $ 1,861,892.26 Page 10. INTEREST DISTRIBUTION (With Amortization) APRIL THROUGH JUNE 2011 Fund April May June Quarterly No. Fund Name 2011 2011 2011 Totals 100 General Fund 987.13 776.51 632.18 2,395.82 200 Utility Fund 334.37 349.39 341.14 1,024.90 201 Engineering - Inspections 6.57 4.63 3.25 14.45 210 U. F. Special Capital Projects 85.20 74.65 65.43 225.28 213 2004 Revenue Bonds 1.18 0.92 0.61 2.71 214 2006 U. F. Cert of Obligation 18.38 15.37 11.99 45.74 215 2007 U. F. Cert of Obligation 31.56 25.83 22.59 79.98 216 2008 & 2010 U. F. Cert of Oblig 67.55 57.03 48.32 172.90 280 Impact Fees - Water/Sewer 58.11 53.55 48.83 160.49 300 Fleet Services 21.62 19.46 17.06 58.14 500 General Debt Service Fund 387.08 344.12 307.91 1,039.11 501 Tax Supported Debt Service 84.40 74.67 66.39 225.46 502 Revenue Bond Debt Service 267.68 240.07 216.37 724.12 520 Community Complex Debt 38.53 37.99 33.90 110.42 604 Economic Dev. Corp. 4A 518.64 466.76 424.30 1,409.70 605 Community Dev. Corp. 4B 124.07 116.12 113.79 353.98 700 Court Security Fund 31.23 27.88 25.03 84.14 701 Court Technology Fund 5.16 4.37 4.19 13.72 705 Environmental Fund 13.57 11.94 11.48 36.99 710 Storm Water Utility 21.26 20.66 20.53 62.45 715 Hotel/Motel Taxes 5.57 8.33 7.94 21.84 720 Lake Park Funds 20.75 19.31 18.60 58.66 723 Special Events Fund 3.62 - - 3.62 725 Community Center 5.35 4.29 3.45 13.09 730 Library Grants 1.28 1.70 1.68 4.66 750 Federal Forfeited Funds 0.36 0.32 0.28 0.96 752 Police Forfeited Funds 1.58 1.36 1.21 4.15 753 Police Seized Funds 1.95 2.12 1.89 5.96 754 Citizen's Donations 0.20 0.18 0.18 0.56 755 Child Safety Fund 2.83 6.30 5.68 14.81 756 Neighborhood Enhancement 0.03 0.02 0.02 0.07 757 Peg Facility Fees 0.66 1.03 1.29 2.98 800 Capital Projects Administration 32.84 24.70 18.62 76.16 815 Impact Fees - Streets 0.02 0.02 0.02 0.06 816 Impact Fees - Drainage 1.02 0.90 0.80 2.72 817 Drainage Improvements 0.03 0.02 0.02 0.07 820 Capital Projects Streets 105.45 87.54 74.90 267.89 822 TxDot RTR/Denton Co. 1,988.28 1,694.63 1,451.14 5,134.05 825 Park Improvements 61.35 51.71 44.80 157.86 826 Park's Capital Projects 25.16 22.27 19.79 67.22 827 Five Star Complex 2.67 2.36 2.10 7.13 844 2007 G. F. Cert of Obligations 93.19 81.59 71.01 245.79 845 2008 G. F. Cert of Obligations 13.57 12.23 11.67 37.47 846 2010 G. F. Cert of Obligations 455.56 377.72 323.17 1,156.45 895 G.F. Special Capital Projects - - - - Totals 5,926.61 5,122.57 4,475.55 15,524.73 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.