2018-184 Fourth Quarter Financial ReportDate: December 14, 2018 Report No. 2018-184
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2018.
BACKGROUND: Attached for your review is the Quarterly Financial Report for the period ending September 30,
2018. If you have any questions or need additional information, please let me know.
STAFF CONTACT:
Antonio Puente, Jr., Chief Financial Officer
(940) 349-7283 Antonio.Puente@cityofdenton.com
1
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City’s
financial position and economic activity. This report includes
information for the quarter ending September 30, 2018.
This report is presented in six sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides an end of year projection and a comparison to the
budget for major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report provides a summary of the
City’s investment portfolio, interest earnings and a brief market
outlook.
5. The Performance Report provides Key Performance Indicators
(KPIs) for each of the goals identified in the City’s strategic
plan. In addition, the progress on Key Action Steps are
highlighted.
2
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Antonio Puente, Jr
Chief Financial Officer
215 East McKinney Street
Denton, TX 76201
940-349-8260
3
O Be Joyful, Denton Festival Foundation at Quakertown Park
4
Section 1
City of Denton
Quarterly Financial Report
September 2018
Executive Dashboards
5
Note: All figures presented are in millions of dollars.FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Fund Balance as of 09/30/17 28.17$ 31.77$ RESOURCES: Ad Valorem Taxes 44.87 44.86 0% Sales Tax39.45 38.27 -3% Franchise Fees4.98 4.98 0% Other Taxes0.49 0.49 0% Service Fees7.96 7.52 -6% Fines and Fees3.71 3.52 -5% Licenses and Permits3.75 3.74 0% Miscellaneous Revenue2.10 2.02 -4% Transfers In16.04 16.31 2%Total Revenues123.35 121.71 -1%Total Resources151.52 153.48 EXPENDITURES : Personal Service84.14 83.15 -1% Material and Supplies3.16 2.68 -15% Maintenance and Repairs3.10 2.72 -12% Insurance1.21 1.21 0% Miscellaneous1.16 1.10 -5% Operations14.84 15.46 4% Transfers Out15.86 16.31 3% Fixed Assets0.56 0.62 11%Total Expenditures124.03 123.25 -1%Net Income (Loss)(0.68) (1.54) Ending Fund Balance27.49$ 30.23$ City of Denton, Texas General Fund Executive Dashboard $‐ $20 $40 $60 $80 $100 $120 $140Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsSales Tax revenues are $1.18M lower than expected. Service Fees revenues are $0.44M lower than expected mainly due to Ambulance Service Fees and Recreation Service Fees.Personal Service expenditures are $0.99M lower than expected due to position savings.Operations expenditures are $0.62M higher than expected mainly due to Chapter 380 agreements. $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5Sales Tax Monthly Average by Quarter1Annual budget reflects year‐end estimate presented to the City Council. Approved year‐end budget was $125,401,473 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.6
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardDESCRIPTIONFY 2017-18 ANNUAL BUDGET 1FY 2017-18 PRELIMINARY ACTUALS FY 2017-18 VARIANCEBeginning Working Capital and Reserves as of 9/30/17 72.51$ 76.94$ RESOURCES: Rate Revenues 142.25 156.49 10% Transmission Revenue 34.91 34.23 -2% Other Revenues 6.01 7.06 17%Total Revenues 183.17 197.78 8%Total Resources 255.68 274.72 EXPENDITURES: Purchased Power 67.51 79.98 18% DEC Fuel 9.05 2.17 -76% Transmission of Power 5.58 11.94 114% Personnel Service 19.15 16.25 -15% Operation and Maintenance 25.04 21.58 -14% Debt Service 34.36 34.36 0% Transfers Out 12.36 11.97 -3% Capital Outlay 24.11 25.04 4%Total Expenditures 197.16 203.29 3%Net Income (Loss) (13.99) (5.51) Ending Working Capital and Reserves 58.52$ 71.43$ $0$50$100$150$200$250Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsRevenues are 8% higher than budgeted. Rate Revenues are $14.2 million higher than budgeted. TCOS Revenue is $0.7 million less than budgeted.Purchased Power and DEC Fuel expenditures combined is $5.6 million more than budgeted.Transmission of Power is $6.4 million higher than expected due to a TCOS adjustment.Operations and Maintenance expenditures are 14% or $3.5 million less than budgeted as a result of licenses, consultants, attorney fees, travel and training, and advertising expenditures being lower than expected. A budget amendment was approved in the final fiscal year quarter in the amount of $24 million to cash fund the CIP and is included in Capital Outlay. As of 9/30/18, preliminary working capital was $16.26 million, and the rate stabilization reserve was $55.17 million.Additionally, Electric had an over collected Energy Cost Adjustment (ECA) of $4.1 million.01002003004005006001Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q182013 – 2018 Historical Quarterly GWH Sales1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $204,903,753 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.7
Note: All figures presented are in millions of dollars.FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/17220.85$ 23.34$ RESOURCES: Water Sales 36.89 40.59 10% Other Water Revenues 0.96 1.77 84% Transfers In 5.81 5.47 -6% Impact Fee Revenue 3.76 3.75 0%Total Re ve n u e s47.42 51.58 9%Total Resources68.27 74.92 EXPENDITURES : Personal Service10.22 9.98 -2% Operations, Services10.77 9.71 -10% Capital Outlay9.17 11.75 28% Debt Service12.64 12.64 0% Transfers Out4.23 3.48 -18%Total Expenditures47.03 47.56 1%Net Income (Loss)0.39 4.02 En di n g W ork i n g C api tal and Reserves 21.24$ 27.36$ 05001,0001,5002,0002,5001Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q183Q182013‐2018 Historical Quarterly Gallons Sold (in Millions)City of Denton, Texas Water Fund Executive Dashboard $‐ $10 $20 $30 $40 $50 $60Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsWater Sales include $2 million in resale of raw water to Upper Trinity Water District. Personal Service expenses are below budget due to position vacancies.Operations, Services are below budget due to reduced materials & supplies and outside services expenses.Capital Outlay expenditures include a transfer in September of $6,878,000.1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $47,809,321 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $6.7M of Impact Fee Reserves and $0.25 million for Development Plan Line Reserves.8
FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17215.93$ 17.86$ RESOURCES: Wastewater Fees 24.23 25.25 4% Other Wastewater Revenue1.78 1.93 8% Drainage Fees4.65 4.79 3% Transfer In0.66 0.66 0% Impact Fee Revenue2.00 2.00 0%Total Revenues33.32 34.63 4%Total Resources49.25 52.49 EXPENDITURES: Personal Service7.62 7.43 -2% Operations, Services8.24 7.17 -13% Capital Outlay7.10 8.63 22% Debt Service7.17 7.17 0% Transfer Out3.20 3.18 -1%Total Expenditures33.33 33.58 1%Net Income (Loss)(0.01) 1.05 Ending Working Capital and Reserves 15.92$ 18.91$ Note: All figures presented are in millions of dollars.02004006008001,0001,2001,4001Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q183Q182013‐2018 Historical Quarterly Gallons Billed (in Millions)City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30 $35 $40Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsOperations, Services are under budget due to lower materials & supplies and outside services costs.Capital Outlay expenditures include a transfer in September of $4,238,650, of which $925,000 was related to higher than anticipated drainage fees.1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $34,023,041 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $2.2 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.33 million for Development Plan Line Reserves.9
FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTIONBUDGET 1ACTUALS VARIANCEREVENUES: Residential Drainage Fees 1.79$ 1.82$ 2% Nonresidential Drainage Fees 2.86 2.97 4% Wastewater Resources 0.10 - -100% General Fund Transfer 0.42 0.42 0%Total Revenues 5.17 5.21 1%EXPENDITURES: Personal Service 1.55 1.52 -2% Operations, Services 0.76 0.57 -25% Capital Outlay 1.56 1.86 19% Debt Service 0.68 0.68 0% Transfer Out0.62 0.58 -6%Total Expe n di tu re s5.17 5.21 1%Net Income (Loss)-$ -$ Note: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive Dashboard $‐ $1.0 $2.0 $3.0 $4.0 $5.0 $6.0Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsOperations, Services are under budget due to lower materials & supplies and outside services costs.Capital Outlay expenditures include a transfer in September of $925,000.1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $5,141,036 for expenditures. 10
FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/1728.15$ 9.47$ RESOURCES: Collection & Disposal 32.63 32.49 0% Recycling0.78 0.81 4% Other Revenue0.70 1.49 113%Total Revenues34.11 34.79 2%Total Resources42.26 44.26 EXPENDITURES: Personal Service10.51 10.31 -2% Operations, Services9.18 9.31 1% Capital Outlay1.97 2.15 9% Debt Service9.54 9.54 0% Transfer Out3.74 3.66 -2%Total Expenditures34.94 34.97 0%Net Income (Loss)(0.83) (0.18) Ending Working Capital and Reserves7.32$ 9.29$ 01,0002,0003,0004,0005,0006,0007,0002017Qtr 12017Qtr 22017Qtr 32017Qtr 42018Qtr 12018Qtr 22018Qtr 32018Qtr 4Refuse TonnageRecycling TonnagesResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsOther Revenue is greater than expected due to auction sale of equipment.Capital Outlay is higher than expected due to increased transfers to capital projects.05,00010,00015,00020,00025,00030,0002017Qtr 12017Qtr 22017Qtr 32017Qtr 42018Qtr 12018Qtr 22018Qtr 32018Qtr 4Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per WeekCommercial RefuseCommercial Recycling1Annual budget reflects year‐end estimate presented to the City Council. Approved year‐end budget was $39,302,768 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital and Reserves excludes $8.65 million of Landfill Closure/Post Closure reserves.11
City of Denton, Texas Airport Fund Executive DashboardKey TrendsFBO Commissions include a one‐time collection of $55,000 not originally included in budget.Personnel Service Expense are less than budget due to vacant positions.Operations, Services expense is less than budget due to lower that expected expenditures on Maintenance and Repair, and utilities.Gas Well Royalty revenues are less than budget due to lower gas production and declining natural gas prices.$0.0$1.0$2.0$3.0$4.0$5.02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing)Note: All financial amounts presented are in millions of dollars.FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/17 2.47$ 2.75$ RESOURCES: Airport Ground Leases 0.71 0.78 10% FBO Commissions 0.20 0.29 45% Miscellaneous 0.09 0.10 11%Total Operating Revenues 1.00 1.17 17%EXPENDITURES: Personal Service 0.53 0.49 -8% Operations, Services 0.41 0.25 -39% Transfer Out 0.55 0.52 -5%Total Operating Expenditures 1.49 1.26 -15%Net Operating Income (Loss) (0.49) (0.09) NON-OPERATING REVENUES: Investment Income 0.03 0.07 133% Gas Well Royalties 0.47 0.41 -13%Total Non-Operating Revenues 0.50 0.48 -4%NON-OPERATING EXPENDITURES: Transfer Out - Capital 0.22 0.22 0%Total Non-Operating Expenditures 0.22 0.22 0%Net Non-Operating Income (Loss) 0.28 0.26 Net Income (Loss) (0.21) 0.17 Ending Working Capital and Reserves 2.26$ 2.92$ 1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2017‐18 budget process.12
FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/2017 1.25$ 1.16$ RESOURCES: Franchise Fees12.47 12.74 2% Street Cuts0.36 0.29 -19% Investment Income0.01 - -100% Transfers In1.12 1.15 3%Total Revenues13.96 14.18 2%Total Resources15.21 15.34 EXPENDITURES: Personal Service3.44 3.24 -6% Materials & Supplies0.09 0.09 0% Maintenance & Repairs6.61 6.73 2% Operations, Services0.89 0.79 -11% Transfer Out2.93 2.87 -2%Total Expe n di tu re s13.96 13.72 -2%Net Income (Loss)- 0.46 Ending Fund Balance1.25$ 1.62$ 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsStreet Cuts are under budget due to lower utility cut repairs.Surface treatments for the year were scheduled in the 4th quarter.Note: All figures presented are in millions of dollars.036912Qtr1Qtr2Qtr3Qtr4Tons of Asphalt Laid (in Thousands)FY16-17FY17-18013263952Qtr 1Qtr 2Qtr 3Qtr 4Lane Miles Surface TreatmentFY 16-17FY 17-18 $- $3.0 $6.0 $9.0 $12.0 $15.0Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18Revenue & Expenses (in Millions)YTD RevenueYTD Expenses13
FY 2017-18 FY 2017-18GRANT PRELIMINARY FY 2017-18DESCRIPTION AMOUNT ACCTUALS VARIANCE2017-18 Budget 1 Comm Development2.94$ 1.24$ -58% Public Safety0.80 0.53 -34% Transportation95.14 20.28 -79% Other0.03 0.03 0%Total Budget98.91 22.08 -78%New Awards 1 Comm Development0.60 0.50 -17% Public Safety0.69 0.52 -25% Transportation3.40 0.28 -92% Parks & Recreation0.21 0.21 0% Other0.21 0.13 -38%Total New Awards5.11 1.64 -68%Totals 104.02$ 23.72$ -77%COMM DEV3.40%PUBLIC SAFETY1.42%TRANS94.73%PARKS & REC0.21%OTHER0.24%FY 2017‐18 Grants Awarded $‐ $20.0 $40.0 $60.0 $80.0 $100.0 $120.0COMMDEVPUBLICSAFETYTRANSPARKS &RECOTHERAwardsExpensesFY 2017‐18 Awards & Expenses (in Millions)Key TrendsThe following grants have been received in FY 2017-18: Emergency Solutions Grant: $600,000Federal Equitable Sharing: $31,315Chapter 59 Asset Forfeitures: $169,399U.S. Marshals Violent Offenders Task Force: $25,663Law Enforcement Officer Education:$17,151Sexual Assault Examiners Reimbursement:$47,8722017 SHSP Ballistic Blankets: $3,0002017 SHSP Night Vision: $14,2002017 UASI Command Data: $30,000Body Armor Grant Program: $91,6922018 SHSP SWAT Equipment Enhancement: $24,000Domestic & Sexual Violence Initiative: $225,000Organized Crime Drug Enforcement: $9,037Transportation Projects: $3,399,191NW Trail Extension Grant: $212,273Interlibrary Loan Program: $32,149TIFMAS Training Grant: $11,275Historic Preservation-CLG Grant:$1,939Texas Parks & Wildlife-CCNHC: $199,613City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.1This grant amount will be spent over several years and the fiscal year 2017-18 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.14
Section 2
City of Denton
Quarterly Financial Report
September 2018
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
15
City of Denton General FundSchedule of Revenues - Budget vs Actuals (Unaudited)For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
REVENUE DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Current Year - Ad Valorem 43,191,856$ 44,460,191$ 44,411,291$ 0%
Delinquent - Ad Valorem 192,136 100,000 127,769 28%
Miscellaneous Penalties & Fees 334,007 309,285 318,650 3%
Ad Valorem Taxes 43,717,999 44,869,476 44,857,710 0%
Sales Tax 36,841,138 39,452,935 38,270,025 -3%
Franchise - Gas Utilities 485,262 342,739 342,739 0%
Franchise - Private Electric Utilities 138,651 122,750 122,750 0%
Franchise - Cable 546,133 480,873 480,873 0%
Franchise - Telecom 248,970 233,956 233,956 0%
Franchise - Denton Municipal Utilities 4,187,833 3,804,531 3,804,531 0%
Franchise Fees 5,606,849 4,984,849 4,984,849 0%
Other Taxes 481,295 491,400 493,461 0%
Ambulance Service Fees 3,677,533 3,380,800 3,288,454 -3%
Fire Department Fees 160,241 196,000 219,715 12%
Building Inspections Fees 505,954 532,247 591,916 11%
Park Department Fees 1,889,115 2,298,651 1,957,227 -15%
Planning Department Fees 960,030 998,065 982,744 -2%
Reprographics Fees 349,048 370,160 325,501 -12%
Miscellaneous Service Fees 118,306 183,015 147,805 -19%
Service Fees 7,660,227 7,958,938 7,513,362 -6%
Denton Municipal Fines 1,511,112 1,482,000 1,432,420 -3%
Parking Fines 254,705 260,000 227,670 -12%
Miscellaneous Fines and Fees 903,383 889,000 846,873 -5%
Court Administrative and Service Fees 977,287 1,080,000 1,016,104 -6%
Fines and Fees 3,646,487 3,711,000 3,523,067 -5%
Demolition Permits 5,890 7,670 5,320 -31%
Building Permits 2,889,363 3,638,055 3,638,497 0%
Certificate of Occupancy 74,290 72,829 71,575 -2%
Miscellaneous Licenses and Permits 47,153 32,278 24,298 -25%
Licenses and Permits 3,016,696 3,750,832 3,739,690 0%
Investment Income 371,305 460,600 514,938 12%
Miscellaneous Revenues 1,775,486 1,635,243 1,502,402 -8%
Miscellaneous Resources 2,146,791 2,095,843 2,017,340 -4%
ROI - Denton Municipal Utilities 7,506,361 7,987,758 8,278,398 4%
Transfers 8,140,385 8,050,688 8,036,527 0%
Transfers 15,646,746 16,038,446 16,314,925 2%
Total General Fund Revenues 118,764,228$ 123,353,719$ 121,714,429$ -1%
1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget is $119,720,372.
16
City of Denton
General Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
Y-T-D BUDGET1 ACTUALS ACTUALS
NEIGHBORHOOD SERVICES
Building Inspections 2,858,490$ 3,071,315$ 2,796,226$ -9%
Community Improvement Services 1,629,488 1,564,294 1,461,586 -7%
Libraries 5,710,917 6,064,112 5,742,354 -5%
Parks and Recreation 12,476,932 13,971,655 13,353,602 -4%
Planning 3,068,235 3,415,509 2,977,515 -13%
Gas Well Review 168,703 393,026 407,229 4%
Social Services 567,064 629,738 639,312 2%
26,479,829 29,109,649 27,377,824 -6%
PUBLIC SAFETY
Animal Services 1,407,977 1,559,205 1,531,051 -2%
Fire 26,492,706 28,876,353 29,570,384 2%
Municipal Court 1,290,483 1,381,702 1,233,130 -11%
Municipal Judge 381,877 436,124 403,188 -8%
Police 29,253,126 32,297,806 31,583,773 -2%
58,826,169 64,551,190 64,321,526 0%
TRANSPORTATION
Traffic Operations 1,931,432 4,042,028 3,975,051 -2%
Transportation Operations 478,853 796,658 626,389 -21%
Street Lighting 787,441 755,000 801,318 6%
3,197,726 5,593,686 5,402,758 -3%
ADMINISTRATIVE & COMMUNITY SERVICES
Cable Television 301,806 323,271 315,519 -2%
City Manager's Office 2,661,176 2,829,303 2,994,797 6%
Economic Development 3,876,800 3,353,387 3,435,777 2%
Facilities Management 4,011,319 4,324,642 4,111,625 -5%
Finance 2,811,695 3,074,420 2,991,561 -3%
Human Resources 1,580,740 1,755,865 1,755,565 0%
Internal Audit 137,540 263,381 370,105 41%
Legal Administration 2,115,591 2,453,772 2,038,336 -17%
Public Communications Office 457,378 495,021 410,946 -17%
Reprographics 425,021 433,646 374,981 -14%
Non-Departmental 8,280,513 5,472,186 7,346,011 34%
26,659,579 24,778,894 26,145,223 6%
TOTAL EXPENDITURES 115,163,303$ 124,033,419$ 123,247,331$ -1%
1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget is $125,401,473.
17
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 9/30/17 72,510,304$ 76,942,756$
REVENUES:
Rate Revenues 140,995,087$ 142,247,739 156,488,941 6%
Transmission Revenues 18,152,139 34,909,157 34,231,935 70%
Other Revenues 13,488,124 6,010,620 7,061,136 21%
Total Revenues 172,635,350 183,167,516 197,782,012 14%
EXPENDITURES:
Purchased Power 88,843,097 67,509,516 79,982,427 4%
DEC Fuel - 9,051,826 2,169,444 28%
Transmission of Power 4,217,800 5,578,948 11,940,988 114%
Personnel Services 15,830,362 19,151,317 16,253,725 -19%
Materials and Supplies 825,429 1,268,680 992,390 -40%
Maintenance and Repair 800,701 1,394,600 701,778 -49%
Insurance 50,033 719,596 703,503 0%
Return on Investment Return on Investment5,405,518 5,767,985 5,991,680 4%
Franchise Fee Franchise Fee7,717,675 8,239,978 8,554,188 4%
Miscellaneous 446,459 674,305 491,054 -62%
Operations 4,756,419 6,979,701 4,140,379 -52%
Debt Service 29,141,890 34,360,369 34,364,908 0%
Interfund Transfers 10,934,687 12,357,797 11,971,526 -5%
Capital Outlay 1,147,964 24,105,000 25,036,734 0%
Total Expenditures 170,118,034 197,159,618 203,294,724 -1%
Net Income (Loss)2,517,316$ (13,992,102) (5,512,712)
Ending Working Capital and Reserves 58,518,202$ 71,430,044$
1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $204,903,753 for
expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
18
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/171 20,851,375$ 23,340,901$
REVENUES:
Water Sales Residential 17,504,928$ 18,585,215 20,300,407 9%
Water Sales Commercial 15,707,766 16,575,408 17,483,857 5%
Water for Resale 1,301,603 1,719,330 2,812,263 64%
Other Water 1,433,508 800,099 1,448,887 81%
Transfers In 5,476,269 5,808,155 5,466,087 -6%
Investment Income 223,638 174,000 319,526 84%
Impact Fee Revenue 4,000,000 3,755,404 3,755,404 0%
Total Revenues 45,647,712 47,417,611 51,586,431 9% Use of Reserves - -
EXPENDITURES:
Personal Service 9,587,107 10,217,907 9,975,274 -2%
Purchased Power 1,221,663 1,561,851 1,340,181 -14%
Purchase of Water - - 1,857 -
Materials and Supplies 1,513,730 1,686,976 1,695,733 1%
Maintenance and Repairs 1,448,707 1,373,808 1,224,639 -11%
Insurance 80,817 219,101 222,481 2%
Miscellaneous 319,007 338,969 254,174 -25%
Operations, Services 1,865,774 2,413,496 1,634,402 -32%
Capital Outlay 12,906,384 9,167,403 11,749,877 28%
Return on Investment 1,213,302 1,316,982 1,376,185 4%
Franchise Fee 1,733,289 1,859,180 1,965,981 6%
Debt Service 11,195,411 12,638,094 12,638,093 0%
Transfers Out 3,611,755 4,231,917 3,482,633 -18%
Total Expenditures 46,696,946 47,025,684 47,561,510 1%
Net Income (Loss)(1,049,234)$ 391,927 4,024,921
Ending Working Capital
and Reserves 21,243,302$ 27,365,822$
1 The Beginning Working Capital balance excludes $6,650,271 of Impact Fee Reserves and $250,000 for Development Plan Line Reserves.
Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
2 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $47,809,321 for expenditures.
19
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/171 15,926,057$ 17,861,887$
REVENUES:
Residential Fees 11,655,664$ 11,030,267 12,199,424 11%
Commercial Fees 12,207,762 12,450,498 12,336,480 -1%
Effluent Irrigation Fees 103,593 67,076 119,802 79%
Wholesale Fees 631,996 686,659 590,985 -14%
Other Wastewater Fees 1,894,464 1,659,542 1,688,037 2%
Drainage Fees 4,645,817 4,649,762 4,782,259 3%
Transfer In 920,819 659,030 659,030 0%
Investment Income 170,898 117,500 254,222 116%
Impact Fee Reserves 3,520,000 2,000,000 2,000,000 0%
Total Revenues 35,751,013 33,320,334 34,630,239 4%
EXPENDITURES:
Personal Service 7,232,290 7,622,072 7,434,742 -2%
Purchased Power 987,482 1,020,000 1,028,092 1%
Materials and Supplies 1,077,202 1,235,111 1,010,518 -18%
Maintenance and Repairs 1,180,377 1,433,129 1,132,435 -21%
Insurance 28,312 180,492 180,492 0%
Miscellaneous 49,129 53,551 42,141 -21%
Operations, Services 1,917,683 2,124,260 1,567,762 -26%
Capital Outlay 11,207,727 7,104,424 8,633,897 22%
Return on Investment 887,541 902,791 910,533 1%
Franchise Fee 1,267,915 1,289,702 1,300,761 1%
Debt Service 6,815,945 7,167,280 7,166,884 0%
Transfers Out 3,232,591 3,196,398 3,176,251 -1%
Total Expenditures 35,884,194 33,329,210 33,584,508 1%
Net Income (Loss)(133,181)$ (8,876) 1,045,731
Ending Working Capital
and Reserves 15,917,181$ 18,907,618$
1 The Beginning Working Capital balance excludes $2,194,686 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $335,000 for Development Plan Line Reserves.
2 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $34,023,041 for expenditures.
Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
20
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended Sep 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
REVENUES:
Residential Drainage Fees 1,762,980$ 1,788,253$ 1,816,999$ 2%
Nonresidential Drainage Fees 2,882,837 2,861,509 2,965,262 2%
Wastewater Resources 13,913 100,000 - -100%
General Fund Transfer 501,336 424,030 424,030 0%
Total Revenues 5,161,066 5,173,792 5,206,291 1%
EXPENDITURES:
Personal Service 1,453,432 1,537,953 1,522,588 2%
Materials and Supplies 45,991 82,120 51,318 -18%
Maintenance and Repairs 82,066 122,200 85,974 -14%
Insurance 2,992 25,461 25,461 0%
Miscellaneous 16,158 16,000 9,221 -42%
Operations, Services 341,028 531,509 392,818 0%
Capital Outlay 1,989,444 1,555,786 1,863,499 5%
Debt Service 636,372 677,790 676,769 0%
Transfer Out 593,583 624,973 578,643 -4%
Total Expenditures 5,161,066 5,173,792 5,206,291 1%
Net Income (Loss)-$ -$ -$
Approved year-end budget was $5,141,036 for expenditures.
1 Annual budget reflects year-end estimate presented to the City Council.
21
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/171 8,151,875$ 9,468,891$
REVENUES:
Garbage Fees - Residential 11,173,109$ 10,794,542 10,757,335 0%
Garbage Fees - Commercial 14,884,430 15,365,434 15,550,202 1%
Landfill Fees 6,249,179 6,330,540 6,057,188 -4%
Materials Processing 131,253 133,972 124,719 -7%
Recycling and Public Outreach 872,049 778,450 814,110 5%
Site Operations 208,259 206,729 127,636 -38%
Other Revenue 529,852 444,749 1,297,383 192%
Investment Income 29,830 53,000 63,308 19%
Total Revenues 34,077,961 34,107,416 34,791,881 2%
EXPENDITURES:
Personal Service 10,423,461 10,507,490 10,317,660 -2%
Materials and Supplies 401,553 301,495 224,887 -25%
Maintenance and Repairs 409,889 364,877 212,333 -42%
Insurance 94,952 233,631 233,631 0%
Miscellaneous 62,659 67,859 60,163 -11%
Operations, Services 6,123,163 5,363,512 5,695,984 6%
Capital Outlay 1,914,843 1,970,000 2,146,941 9%
Debt Service 8,059,706 9,542,116 9,543,240 0%
Franchise Fee 1,687,618 1,702,293 1,737,792 2%
Landfill Closure 1,198,301 1,143,059 1,143,059 0%
Transfer Out 2,580,719 3,740,685 3,657,201 -2%
Total Expenditures 32,956,864 34,937,017 34,972,891 0%
Net Income (Loss)1,121,097$ (829,601) (181,010)
Ending Working Capital
and Reserves 7,322,274$ 9,287,881$
1 The Beginning Working Capital Reserve excludes $8,654,114 Landfill Closure/Post Closure Reserves.
2 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $39,302,768 for expenditures.
Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
22
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/17 2,471,421$ 2,748,875$
OPERATING REVENUES:
Airport Ground Leases 584,700$ 713,154 778,054 9%
FBO Commissions 208,931 199,808 291,467 46%
Miscellaneous 95,524 92,619 114,802 24%
Total Operating Revenues 889,155 1,005,581 1,184,323 18%
OPERATING EXPENDITURES:
Personal Service 519,113 530,482 485,569 -8%
Materials and Supplies 26,196 46,700 45,717 -2%
Maintenance and Repairs 56,987 105,193 25,705 -76%
Insurance 7,025 21,823 21,823 0%
Miscellaneous 1,024 1,200 449 -63%
Operations 190,267 238,160 161,653 -32%
Transfers Out - Operating 470,222 547,070 519,841 -5%
Total Operating Expenses 1,270,834 1,490,628 1,260,757 -15%
Operating (Loss)(381,679) (485,047) (76,434)
NON-OPERATING REVENUES:
Investment Income 42,244 25,000 65,183 161%
Gas Well Royalties 606,518 474,130 410,692 -13%
Total Non-Operating Revenues 648,762 499,130 475,875 -5%
NON-OPERATING EXPENDITURES:
Transfers Out - Capital - 225,000 225,000 0%
Total Non-Operating Expenses - 225,000 225,000 0%
Non-Operating Income (Loss)648,762 274,130 250,875
Net Income (Loss)267,083$ (210,917)174,441
Ending Working Capital 2,260,504$ 2,923,316$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY
2017-18 budget process.
23
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2018
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and reserves as of 9/30/2017 1,253,048$ 1,158,667$
REVENUES:
Franchise Fees 11,097,869$ 12,476,060 12,743,755 2%
Street Cuts 240,099 357,000 292,517 -18%
Investment Income 14,294 10,000 933 -91%
Transfers In 1,023,161 1,118,135 1,149,075 3%
Miscellaneous 200,835 - 1,505
Total Revenues 12,576,258 13,961,195 14,187,785 2%
EXPENDITURES:
Personal Service 2,930,142 3,439,984 3,241,181 -6%
Materials and Supplies 107,153 87,150 85,055 -2%
Maintenance and Repairs 8,631,040 6,620,524 6,734,599 2%
Insurance 8,649 51,693 51,693 0%
Miscellaneous 3,609 5,000 4,320 -14%
Operations, Services 742,117 830,302 736,304 -11%
Transfer Out 727,176 2,926,542 2,869,873 -2%
Fixed Assets 66,329 - -
Total Expenditures 13,216,215 13,961,195 13,723,025 -2%
Net Income (Loss)(639,957)$ - 464,760
Ending Fund Balance 1,253,048$ 1,623,427$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
24
City of Denton
Grants
Schedule of Expenses - Budget vs Preliminary Actuals (Unaudited)
For the Period Ended September 30, 2018
GRANT DESCRIPTION
EXPENDITURE
S AS OF
9/30/20172
ANNUAL
BUDGET
PRELIMINIAR
Y ACTUALS
BUDGET VS
ACTUALS
FY 2017-18 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)2,775,354$ 1,893,649$ 735,862$ -61%
US Dept of HUD -
HOME Investment Partnership Program 2,816,384 1,046,759 503,978 -52%
Community Development1 5,591,738 2,940,408 1,239,840 -58%
TxDot STEP Comprehensive Grant - 91,464 74,805 -18%
2016 UASI - 130,000 130,000 0%
2017 UASI - 98,200 96,962 -1%
Emergency Management Performance Grant - 46,825 - -100%
2016 Tobacco Enforcement Grant - 7,350 - -100%
Staffing for Adequate Fire & Emergency Response - 419,971 225,381 -46%
Public Safety - 793,810 527,148 -34%
Airport Maintenance (RAMP) Grant - 50,000 49,995 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 14,203,683 33,197,821 14,315,161 -57%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 9,189,164 39,579,553 4,527,476 -89%
County-Traffic Signal-US 380-Cindy Lane - 53,865 - -100%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 37,000 - -100%
TxDot-RTR-McKinney (Formerly FM426) 138 18,267,303 1,308,511 -93%
TxDot-Hickory Creek FM2181-FM2499 2,294 2,397,706 75,279 -97%NCTCOG Regional HHW Drop-Off Facility
Project - 55,898 - -100%
Bicycle & Pedestrian Projects Grant - 1,500,000 - -100%
Transportation1 23,395,279 95,139,146 20,276,422 -79%
Interlibrary Loan Program (ILL) - 25,000 25,000 0%
TIFMAS Training Tuition Grant - 10,000 10,000 0%
Other - 35,000 35,000 0%
Total FY 2017-18 Budget 28,987,017 98,908,364 22,078,410 -78%
New Awards
Emergency Solutions Grant - 600,000 506,879 -16%
Community Development - 600,000 506,879 -16%
Federal Equitable Sharing - 31,315 31,315 0%
Chapter 59 Asset Forfeitures - 169,399 169,399 0%
U.S. Marshals Violent Offenders Task Force - 25,663 25,663 0%
PD-Law Enforcement Officer Standards &
Education - 17,151 17,151 0%
Sexual Assault Nurse Examiners (SANE)
Reimbursement - 47,872 47,872 0%
2017 SHSP Ballistic Blankets - 3,000 3,000 0%
2017 SHSP Night Vision - 14,200 14,171 0%
2017 UASI - 30,000 - -100%
Body Armor Grant Program - 91,692 - -100%
2018 SHSP SWAT Equipment Enhancement - 24,000 - -100%
Domestic and Sexual Violence Initiative Grant - 225,000 204,202 -9%
Organized Crime Drug Enforcement Task Force - 9,037 9,037 0%
Public Safety - 688,329 521,810 -24.19%
25
City of Denton
Grants
Schedule of Expenses - Budget vs Preliminary Actuals (Unaudited)
For the Period Ended September 30, 2018
GRANT DESCRIPTION
EXPENDITURE
S AS OF
9/30/20172
ANNUAL
BUDGET
PRELIMINIAR
Y ACTUALS
BUDGET VS
ACTUALS
TxDot-N TX Blvd Roundabout 11,805 1,988,195 2,187 -100%
TxDot-RTR-ITS COMM Trunk Line 253,372 1,318,228 185,010 -86%
TxDot-US 77 At Nicosia Street - 49,533 49,533 0%
TxDot-FM 2499 At State School Road - 21,597 21,597 0%
TxDot-FM 2499 At Unicorn Lake - 21,638 21,491 -1%
Transportation1 265,177 3,399,191 279,818 -92%
TxDot NW Trail Extension Grant 1,086,685 212,273 212,273 0%
Parks and Recreations 1,086,685 212,273 212,273 0%
Interlibrary Loan Program (ILL) - 7,149 7,149 0%
TIFMAS Training Tuition Grant - 1,275 1,275 0%
Historic Preservation-Certified Local Government
(CLG) Grant - 1,939 1,939 0%
Texas Parks & Wildlife-CCNHC-Davis Trailhead
& Trail - 199,613 113,670 -43.05%
Others - 209,976 124,033 -41%
Total New Awards 1,351,862 5,109,769 1,644,813 -68%
TOTALS 30,338,879$ 104,018,133$ 23,723,223$ -77%
1 This grant amount will be spent over several years and the fiscal year 2017-18 projections are just estimated expenditure
in the one year. Remaining grant amounts will be spent in future fiscal year.
2 A portion of the grants presented cover multiple years.
26
Section 3
City of Denton
Quarterly Financial Report
September 2018
REVENUE & ECONOMIC
ANALYSIS
27
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state
and national trends impacting the City’s financial position.
The following notes are provided to facilitate this section’s readability.
1. Positive Outlook – Represents favorable conditions for the local
economy. Color code – Green.
2. Cautious Outlook – Represents changing conditions that
require close monitoring. Color code – Yellow.
3. Negative Outlook – Represents unfavorable conditions for the
local economy. Color code – Red.
The data included in this section have been obtained from a variety of
sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City’s investment advisor, First Southwest Asset
Management.
28
National Economic Trends
Period Ending September 30, 2018
Gross Domestic Product (GDP)
The initial reading of third quarter GDP
showed that economic growth had slowed
from +4.2% in the second quarter to +3.5%.
The consumer spending component was solid
at +4.0%, but trade subtracted 1.8 percentage
points from the overall Q3 number as imports
soared while exports fell. Obviously, this
reflects the trade war …which has since
escalated significantly in the fourth quarter.
Inventory accumulation added 2.1 percentage
points to the overall number. This is a volatile
component; it’s quite possible that inventories
will reduce fourth quarter growth. Again, this
could be trade war related as U.S. businesses
boosted inventories ahead of tariff
implementation. When inventories are
removed, third quarter “real final sales” rose
by just +1.4%, compared to +5.4% in the
second quarter.
Nonfarm Payrolls
The September employment report was an
oddly mixed bag. The ADP private payroll
report, released two days earlier, had hinted at
some upside risk to payrolls. But the official
Bureau of Labor Statistics (BLS) release
showed nonfarm payrolls missed the +185k
median forecast with only +134k new jobs
added in September. However, the previous
two months were revised higher by a
combined +87k. …that’s both a big miss and
a big revision. Although some hurricane
related distortion seems likely, the BLS said it
is not possible to quantify the net effect on
payrolls. The last three months have seen
payrolls grow by a healthy +190k per month
average. In the separate household survey, the
unemployment rate fell from 3.9% to 3.7%,
pushing the 49-year low just a little bit lower.
29
Inflation
Inflation seems to have peaked. Both the
headline consumer price index (CPI) and
core CPI rose by just +0.1% in September,
below the median forecasts. On a year-over-
year basis, headline CPI slipped from a
+2.7% pace to +2.3%, while the core was
unchanged at +2.2%. Although a slight
deceleration in the upward trend of housing
costs and a drop in vehicle prices were major
factors in the lukewarm September report,
prices on many goods (including beef, pork,
chicken, fruits and vegetables, major
appliances, drugs, alcohol and medical
services) were stagnant or falling.
The Fed, however, is more interested in the
personal consumption expenditures (PCE)
core index which continues to hover just
below the 2.0% mark.
Retail Sales
Consumer spending has been puzzlingly
sluggish given the elevated levels of
consumer confidence. September retail
sales, expected to climb +0.5%, instead rose
by just +0.1% for the second straight month.
The weakness was primarily attributed to a
sharp drop in food services and drinking
places, some of which may be hurricane
related. Sales ex autos and gas also fell short
of forecasts. However, the control group
measure (which feeds into GDP) beat
forecasts for a +0.4% gain by rising +0.5%
…although August data was revised a tenth
lower to 0.0%. Ignoring all the noise, the
key takeaway is that after four straight
months with headline retail sales growing at
better than 6% on a year-over-year basis,
sales slowed to +4.7% in September.
30
Texas Home Sales
Texas home sales fell -5.4% in the
third quarter, but were still up +3.9%
on a year-over-year basis. The
average Texas home price in
September was $281k, a +4.2%
increase over the previous year, but
below the record high of $298.2 set
three months earlier. .
In Denton County, unit home sales
fell by -7.5% during the summer
quarter, and fell -7% over the same
period a year ago. The average home
price in September was $348.2k, a
+5.8% year-over-year increase, but
below the record high of $367.9 set
two months earlier. County home
listings in September were 3,918,
approximately +41% higher than two
years earlier. The available inventory
(in months) was 3.2 months at quarter end; a substantial increase from 2.2 six months earlier.
The paper was prepared by FirstSouthwest Asset Management, is intended for educational and informational purposes only and does not constitute legal or
investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was
obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish
standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of FirstSouthwest Asset
Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In addition, the views are subject
to change without notice. This paper represents historical information only and is not an indication of future performance.
31
Fuel Prices Outlook Cautious
Description: Quarterly fuel trends for the United States and Texas.
Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease.It is estimated that for every penny decrease in the price of
fuel,$1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key
predictor of sales tax collections. Fuel prices showed a 0.2%decrease from the prior quarter at the national level
and a 1.3% decrease at the state level. Staff has rated this outlook as Cautious.
Source: U.S. Department of Energy
$0
$2
$4
$6
$8
$10
$12
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
32
Municipal Cost Index Outlook Negative
Description:The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased
frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments
of Commerce and Labor as well as independently compiled data to project a composite cost picture for the
municipal budget officer or operating department manager. Costs of labor, materials and contract services are all
factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price
Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the
construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis:The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI.An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine business.
The 4th Quarter of 2017-18 shows an increase of 2.3% over the prior quarter and an increase of 8.5% over the 4th
Quarter of 2016-17. Staff has rated this indicator as Negative.
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control
price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,
readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing
business as a local government.
Source: American City and County Magazine
225.00
230.00
235.00
240.00
245.00
250.00
255.00
4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18
Municipal Cost Index
33
Hotel Occupancy Tax Analysis Outlook Positive
4th Quarter FY 2017‐18
Actual Y‐T‐D
Occupancy Tax Revenue:713,496$ 2,762,062$
FY 2017‐18 Budget 789,529$ 3,052,174$
Over (Under) Budget (76,033)$ (290,112)$
Hotel Occupancy Tax Budget:3,052,174$
End of Year Projection:3,052,174$
End of Year Actual:2,762,062$
(290,112)$
Variance ‐ Actual to Projection (290,112)$
Description:Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or
agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain
sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and
breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.
Analysis:While the use of this revenue source is restricted by state law, it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity. Hotel
Occupancy tax revenue through the 4th Quarter of FY 2018 was 9.5% less than budget and 8.43% more than prior
year's actual. Staff has rated the outlook for this economic indicator as Positive.
FISCAL YEAR FORECAST
Variance ‐ Actual to Budget
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18
34
Sales and Use Tax Analysis Outlook Positive
4th Quarter FY 2017‐18
Actual Y‐T‐D
Revenue: Gross Sales Tax
Municipal Operations 631,423$ 1,993,932$
General Retail & Others 9,554,464 37,741,645
Comptroller Fees (187,369) (740,177)
Amount Retained (183,622) (725,375)
Total Revenue 9,814,896$ 38,270,025$
*Expenses: Economic Incentives
Denton Crossing1 140,535$ 684,313$
Unicorn Lake2 21,180 75,011
Rayzor Ranch3 450,582 1,415,014
Golden Triangle4 6,103 82,163
Total Expenses 618,400$ 2,256,501$
Net Total 9,196,496 36,013,524
FY 2017‐18 Budget 9,024,868 33,807,566
Over(Under) Budget 171,628$ 2,205,958$
Sales Tax Budget: 36,181,385$
Year End Projection: 39,452,935
38,270,025
Variance to Original Budget: 2,088,640$
Variance to Year End Projection: (1,182,910)$
Economic Development Expenditure Budget: 2,373,819$
Year End Projection: 2,373,819
Year End Actual: 2,256,501
Variance to Original Budget: 117,318$
Variance to Year End Projection:117,318$
1Incentive is 50% of general sales taxes. For 2017‐18 sales tax equaled $2,052,939.
2Incentive is 50% of general sales taxes. For 2017‐18 sales tax equaled $225,033.
3Incentive is 75% of general sales taxes. For 2017‐18 sales tax equaled $2,691,150.
4Incentive is 75% of general sales taxes. For 2017‐18 sales tax equaled $164,326.
Description:Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax
rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the delivery
of services to the community. Sales tax revenues through the 4th Quarter of FY 2018 compared to revenues from the prior
year 4th Quarter shows a ‐0.26% decrease, and compared to the budget shows a 1.62% increase. Staff has rated this
indicator as Positive.
Year End Actual:
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Gross Sales Tax Collections (Millions)
FY 2013‐14 Actual FY 2014‐15 Actual FY 2015‐16 Actual FY 2016‐17 Actual FY 2017‐18 Actual
35
Certificates of Occupancy Outlook Cautious
Source: City of Denton's Development Services Department.
Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building
Code (IBC)and applicable City ordinances. The IBC states, "that no building shall be used or occupied,and no change
in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building
official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and
consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of
the local economy. Certificates of Occupancy increased 36.1%from the prior quarter and decreased 39.1%from the
4th Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
4Q
'13
1Q
'14
2Q
'14
3Q
'14
4Q
'14
1Q
'15
2Q
'15
3Q
'15
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
Certificates of Occupancy
36
Residential Permits Outlook Cautious
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC)and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy.In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased 74.6%from the prior quarter and increased 6.1%from the 4th
Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
4Q
'13
1Q
'14
2Q
'14
3Q
'14
4Q
'14
1Q
'15
2Q
'15
3Q
'15
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
Residential Permits
37
Texas Leading Indicators Index Outlook Cautious
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising,and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows an increase in the state's rate of growth. The index decreased 1.15%from the prior quarter and
increased 2.06% from the 4th Quarter of 2016-17. Staff has rated this indicator as Cautious
100.0
105.0
110.0
115.0
120.0
125.0
130.0
135.0
140.0
4Q
'08
2Q
'09
4Q
'09
2Q
'10
4Q
'10
2Q
'11
4Q
'11
2Q
'12
4Q
'12
2Q
'13
4Q
'13
2Q
'14
4Q
'14
2Q
'15
4Q
'15
2Q
'16
4Q
'16
2Q
'17
4Q
'17
2Q
'18
4Q
'18
Texas Leading Indicators Index
38
Unemployment Rate Index Outlook Positive
Description:Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis:Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 3.2%for the 4th Quarter.
The unemployment rates for most of the other reported sectors were either down slightly or flat from the prior
quarter.As a result of the downward trend since the high of the 2nd Quarter of 2012,staff has rated the outlook for
this revenue indicator as Positive.
Note:U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.
Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to
settle for a part-time schedule.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
4Q '12 2Q '13 4Q '13 2Q '14 4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18
Unemployment Rate Index
Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States
39
Highway Medallion at North Texas Blvd
40
Section 4
City of Denton
Quarterly Financial Report
September 2018
INVESTMENT REPORT
41
4th Fiscal Quarter 2018 - September 30, 2018 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max.Benchmark
Portfolio:Value Value Value Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 610,092,457$ 606,716,884$ 609,567,636$ (2,850,752)$ 206 550 1.73%2.05%
*Twelve month moving average of a one year
U.S. T-bill yield
% of Total
Par Market Book Unrealized Portfolio Policy
Securities By Investment Type:Value Value Value Gain/(Loss)1 WAM YTM (Book Value) Max.
U.S. Treasuries 27,000,000 26,893,742 26,947,477 (53,735) 104 1.57% 4.42% 100.00%
U.S. Federal Agencies 257,756,000 254,844,355 257,563,816 (2,719,461) 373 1.53% 42.26% 100.00%
Municipal Bonds 11,000,000 10,930,770 11,000,000 (69,230) 153 1.07% 1.80% 15.00%
Certificates of Deposit 82,000,000 82,000,000 82,000,000 - 252 1.70% 13.45% 35.00%
Commercial Paper 36,000,000 35,711,560 35,719,886 (8,326) 116 2.50% 5.86% 15.00%
Local Government Investment Pools 194,701,747 194,701,747 194,701,747 - 1 1.94% 31.94% 50.00%
Demand Deposits 1,634,710 1,634,710 1,634,710 - 1 0.80% 0.27% -
Total Portfolio 610,092,457$ 606,716,884$ 609,567,636$ (2,850,752)$ 206 1.73% 100.00% -
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons: 9/30/2018 6/30/2018 Difference 9/30/2017
Par Value 610,092,457$ 555,902,431$ 54,190,026$ 707,614,071$
Market Value 606,716,884$ 552,367,304$ 54,349,580$ 706,581,905$
Book Value 609,567,636$ 555,370,737$ 54,196,899$ 707,643,535$
Unrealized Gain(Loss) (2,850,752)$ (3,003,433)$ 152,681$ (1,061,630)$
Weighted Average Maturity 206 291 (85) 382
Yield to Maturity 1.73% 1.58% 0.15% 1.25%
Portfolio Composition:
U.S. Treasuries 4.42% 4.85% -0.42% 7.64%
U.S. Federal Agencies 42.26% 54.11% -11.85% 49.86%
Municipal Bonds 1.80% 1.98% -0.19% 3.23%
Certificates of Deposit 13.45% 18.36% -4.90% 21.34%
Commercial Paper 5.86% 3.74% 2.12% 5.63%
Local Government Investment Pools 31.94% 11.92% 20.02% 8.47%
Insured Cash Sweep Savings Deposits 0.00% 4.50% -4.50% 3.53%
Demand Deposits 0.27% 0.54% -0.27% 0.30%
Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 35,757,895$ 1,634,710$ 2187.42%
LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC 26,360,000$ 25,500,180$ 103.37%
Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC 16,950,000$ 15,257,438$ 111.09%
**Does not include FDIC insurance
***Formerly, ViewPoint Bank
Depository Ledger Balance Review:Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 2,179,418$ 108,660,592$ 1,634,710$
Compliance Statement & Review:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
(97,521,614)$
1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses arerealized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and
losses are unlikely to be realized.
(176)
0.48%
-1.42%
(99,865,021)$
(98,075,899)$
(1,789,122)$
-3.21%
Withdrawals
The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's InvestmentPolicy and the Public Funds Investment Act (Texas Government Code, Chapter 2256.023).
Reviewer: Antonio Puente, Jr., CGFO
-7.61%
-7.89%
-0.03%
Pledge Required
0.23%
> 102%
> 102%
> 100%
23.47%
-3.53%
Chief Financial Officer Treasury Manager
(109,205,300)$
Preparer: Kevin Ann Mullen, CPA
ANTONIO PUENTE, JR.KEVIN ANN MULLEN
42
4th Fiscal Quarter 2018 - September 30, 2018 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
9/30/2018 6/30/2018 Difference 9/30/2017 Difference
Par Value - U.S. Treasuries 27,000,000$ 27,000,000$ -$ 54,000,000$ (27,000,000)$
Par Value - U.S. Federal Agencies 257,756,000 300,756,000 (43,000,000) 352,756,000 (95,000,000)
Par Value - Municipal Bonds 11,000,000 11,000,000 - 22,800,000 (11,800,000)
Certificates of Deposit 82,000,000 102,000,000 (20,000,000) 151,000,000 (69,000,000)
Par Value - Commercial Paper 36,000,000 21,000,000 15,000,000 40,000,000 (4,000,000)
Local Government Investment Pools 194,701,747 66,174,172 128,527,575 59,924,172 134,777,575
Insured Cash Sweep Savings Deposits - 25,000,000 (25,000,000) 25,000,000 (25,000,000)
Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)
Total Par Value 610,092,457$ 555,902,431$ 54,190,026$ 707,614,071$ (97,521,614)$
Market Value - U.S. Treasuries 26,893,742$ 26,827,579$ 66,163$ 54,005,424$ (27,111,682)$
Market Value - U.S. Federal Agencies 254,844,355 297,698,394 (42,854,039) 351,938,910 (97,094,555)
Market Value - Municipal Bonds 10,930,770 10,904,650 26,120 22,733,295 (11,802,525)
Certificates of Deposit 82,000,000 102,000,000 (20,000,000) 151,000,000 (69,000,000)
Market Value - Commercial Paper 35,711,560 20,790,250 14,921,310 39,846,205 (4,134,645)
Local Government Investment Pools 194,701,747 66,174,172 128,527,575 59,924,172 134,777,575
Insured Cash Sweep Savings Deposits - 25,000,000 (25,000,000) 25,000,000 (25,000,000)
Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)
Total Market Value 606,716,884$ 552,367,304$ 54,349,580$ 706,581,905$ (99,865,021)$
Book Value - U.S. Treasuries 26,947,477$ 26,910,229$ 37,248$ 54,062,054$ (27,114,577)$
Book Value - U.S. Federal Agencies 257,563,816 300,518,882 (42,955,066) 352,831,583 (95,267,767)
Book Value - Municipal Bonds 11,000,000 11,000,000 - 22,841,978 (11,841,978)
Certificates of Deposit 82,000,000 102,000,000 (20,000,000) 151,000,000 (69,000,000)
Book Value - Commercial Paper 35,719,886 20,795,195 14,924,691 39,849,849 (4,129,963)
Local Government Investment Pools 194,701,747 66,174,172 128,527,575 59,924,172 134,777,575
Insured Cash Sweep Savings Deposits - 25,000,000 (25,000,000) 25,000,000 (25,000,000)
Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)
Total Book Value 609,567,636$ 555,370,737$ 54,196,899$ 707,643,535$ (98,075,899)$
Accrued Interest 2,671,966$ 3,171,462$ (499,496)$ 3,052,951$ (380,985)$
Cash Value -609,388,850$ 555,538,766$ 53,850,084$ 709,634,856$ (100,246,006)$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)(2,850,752)$ (3,003,433)$ 152,681$ (1,061,630)$ (1,789,122)$
Change in Fair Value since 9/30/17 -(1,356,603)$ (1,631,152)$ 274,549$ (1,586,781)$ 230,178$
(GASB 31)
Strategy Statement:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee
income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet
anticipated daily cash needs for the City's operations, capital projects and debt service. In order to meet these obligations and to minimizepotential liquidation losses, the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The
objectives of this portfolio are to: (1) ensure safety of principal by investing in only high quality securities for which a strong secondary market
exists; (2) ensure that anticipated cash flow needs are matched with adequate investment liquidity; (3) limit market and credit risk through
diversification; and (4) attain the best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by
actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the
Federal Reserve Statistical Release H.15 for constant maturities.
43
4th Fiscal Quarter 2018 - September 30, 2018 Page 3
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Security Type:9/30/2018 6/30/2018 9/30/2017
U.S. Treasuries - Coupon 26,947,477$ 26,910,229$ 54,062,054$
U.S. Federal Agencies - Coupon 236,808,052$ 279,762,927 322,073,977
U.S. Federal Agencies - Callable 20,755,765$ 20,755,956 30,757,606
Municipal Bonds - Coupon 11,000,000$ 11,000,000 22,841,978
Certificates of Deposit - CDARS 42,000,000$ 42,000,000 59,000,000
Certificates of Deposit - SLOC 40,000,000$ 60,000,000 92,000,000
Commercial Paper - Discount 35,719,886$ 20,795,195 39,849,849
Local Government Investment Pools 194,701,747$ 66,174,172 59,924,172
Insured Cash Sweep Savings Deposits -$ 25,000,000 25,000,000
Demand Deposits 1,634,710$ 2,972,259 2133899
Total Book Value 609,567,636$ 555,370,738$ 707,643,535$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type:9/30/2018 6/30/2018 9/30/2017
U.S. Treasuries - Coupon 4.42%4.85%7.64%
U.S. Federal Agencies - Coupon 38.85%50.37%45.51%
U.S. Federal Agencies - Callable 3.41%3.74%4.35%
Municipal Bonds - Coupon 1.80%1.98%3.23%
Certificates of Deposit - CDARS 6.89%7.56%8.34%
Certificates of Deposit - SLOC 6.56%10.80%13.00%
Commercial Paper - Discount 5.86%3.74%5.63%
Local Government Investment Pools 31.94%11.92%8.47%
Insured Cash Sweep Savings Deposits 0.00%4.50%3.53%
Demand Deposits 0.27%0.54%0.30%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal
bonds rated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit
(maturing in less than three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or
better (maturing in less than 270 days); and local government pools & SEC registered government money market mutual funds (weighted average
maturity of less than 60 days).
U.S. Treasuries ‐
Coupon
4.42%
U.S. Federal Agencies ‐
Coupon
38.85%
U.S. Federal Agencies ‐Callable
3.40%
Municipal Bonds ‐Coupon
1.80%
Certificates of
Deposit ‐SLOC
6.56%
Certificates of
Deposit ‐CDARS
6.89%
Commercial Paper ‐
Discount
5.86%
Local Government Investment Pools
31.94%
Demand Deposits
0.27%
Current09/30/2018
44
4th Fiscal Quarter 2018 - September 30, 2018 Page 4
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Issuer:9/30/2018 6/30/2018 9/30/2017
CDARS CDs 42,000,000.00 42,000,000.00 59,000,000.00
LEGACYTEXAS BANK CDs*25,000,000 45,000,000 62,000,000
INDEPENDENT BANK CDs 15,000,000 15,000,000 30,000,000
U.S. TREASURY 26,947,477 26,910,229 54,062,054
FFCB 57,996,001 71,996,109 84,030,979
FHLB 105,978,215 115,963,972 130,125,419
FHLMC 25,932,308 42,928,630 52,934,154
FNMA 67,657,291 69,630,170 85,741,031
DALLAS, TX WTR & SWR REV BDS 10,000,000 - 10,000,000
TEXAS A&M UNIV REV BDS 1,000,000 10,000,000 4,500,000
LUBBOCK, TX GO REFUNDING BDS - 1,000,000 3,301,573
UNIVERSITY OF HOUSTON, TX REV BDS - - 5,040,405
JP MORGAN SECURITIES LLC 10,923,670 10,854,083 24,870,611
TOYOTA MOTOR CREDIT CORP 19,820,178 - 4,990,263
NESTLE FINANCE INTL LTD - - 9,988,975
ING (U.S.) FUNDING LLC - 4,996,125 -
NATIXIS NY BRANCH 4,976,038 4,944,988 -
TEXSTAR 194,701,747 66,174,172 59,924,172
INSURED CASH SWEEP SAVINGS - 25,000,000 25,000,000
WELLS FARGO DEMAND DEPOSITS 1,634,710 2,972,258 2,133,899
Total Book Value 609,567,636$ 555,370,736$ 707,643,535$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Issuer:9/30/2018 6/30/2018 9/30/2017
CDARS CDs 6.89%7.56%4.98%
LEGACYTEXAS BANK CDs*4.10%8.10%9.90%
INDEPENDENT BANK CDs 2.46%2.70%3.86%
U.S. TREASURY 4.42%4.85%6.96%
FFCB 9.51%12.96%10.03%
FHLB 17.39%20.88%18.65%
FHLMC 4.25%7.73%5.53%
FNMA 11.10%12.54%10.40%
DALLAS, TX WTR & SWR REV BDS 1.64%1.80%1.29%
TEXAS A&M UNIV REV BDS 0.16%0.18%1.22%
GE CAPITAL TREASURY LLC --2.31%
LUBBOCK, TX GO REFUNDING BDS --0.43%
UNIVERSITY OF HOUSTON, TX REV BDS --0.65%
MCKINNEY, TX GENERAL OBG BONDS --0.15%
TEXAS SCHOOL DIST GEN OBG BONDS --0.37%
JP MORGAN SECURITIES LLC 1.79%1.95%1.92%
TOYOTA MOTOR CREDIT CORP 3.25%-2.18%
NESTLE FINANCE INTL LTD --1.92%
ING (U.S.) FUNDING LLC -0.90%-
AMERICAN HONDA FINANCE --0.64%
NATIXIS NY BRANCH 0.82%0.89%-
TEXSTAR 31.94%11.92%16.39%
INSURED CASH SWEEP SAVINGS -4.50%-
WELLS FARGO DEMAND DEPOSITS 0.27%0.54%0.22%
Total 100.00%100.00%100.00%
*Formerly, ViewPoint Bank
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value
and to those offering repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. The purpose of this requirement is to limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no
issuer limitations on U.S. Treasuries or FDIC insured products except as they pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some
investment types may be further limited
CDARS CDs, 6.89%
LEGACYTEXAS BANK CDs, 4.10%
INDEPENDENT BANK CDs, 2.46%
U.S. TREASURY, 4.42%
FFCB, 9.51%
FHLB, 17.39%
FHLMC, 4.25%FNMA, 11.10%
TEXAS A&M UNIV REV BDS, 0.16%
DALLAS, TX WTR & SWR REV BDS, 1.64%
JP MORGAN SECURITIES LLC, 1.79%
ING (U.S.) FUNDING LLC, .9%
NATIXIS NY BRANCH, 0.82%
TEXSTAR, 31.94%
WF DEMAND DEPOSITS, 0.27%
Current
9/30/2018
45
4th Fiscal Quarter 2018 - September 30, 2018 Page 5
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:9/30/2018 6/30/2018 9/30/2017
00-03 Months 235,336,457$ 162,146,431$ 136,058,071$
03-06 Months 116,000,000 39,000,000 115,300,000
06-12 Months 96,000,000 147,000,000 137,500,000
12-24 Months 162,756,000 192,000,000 200,000,000
24 Months & Over 15,756,000 118,756,000
Total Par Value 610,092,457$ 555,902,431$ 707,614,071$
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:9/30/2018 6/30/2018 9/30/2017
00-03 Months 38.57%29.17%19.23%
03-06 Months 19.01%7.02%16.29%
06-12 Months 15.74%26.44%19.43%
12-24 Months 26.68%34.54%28.26%
24 Months & Over 0.00%2.83%16.78%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows
based on the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements
and by investing in securities with active secondary markets. Short-term local government investment pools and government money
market mutual funds help to provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
46
4th Fiscal Quarter 2018 - September 30, 2018 Page 6
ECONOMIC SUMMARY
Interest Rate History
Source: U.S. Federal Reserve Statistical
Release (H.15)
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)0.16% 0.14% 0.09% 0.08% 0.09% 0.08% 0.10% 0.09%0.12% 0.11% 0.13% 0.14%
3-Month U.S. T-Bill 0.07% 0.09% 0.05% 0.02% 0.07% 0.05% 0.04% 0.02%0.03% 0.03% 0.02% 0.02%
2-Year U.S. T-Note 0.26% 0.26% 0.33% 0.40% 0.34% 0.40% 0.45% 0.57%0.64% 0.64% 0.69% 0.71%
Portfolio Benchmark*0.18% 0.18% 0.16% 0.15% 0.13% 0.13% 0.12% 0.12%0.12% 0.15% 0.18% 0.24%
Portfolio Yield 0.52% 0.50% 0.48% 0.49%0.50% 0.49% 0.49% 0.51% 0.55% 0.57% 0.57% 0.65%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)0.24% 0.36% 0.38% 0.40% 0.54% 0.79% 1.04% 1.15%1.30% 1.67% 1.90% 2.15%
3-Month U.S. T-Bill 0.23% 0.30% 0.27% 0.29% 0.51% 0.75% 1.00% 1.05%1.32% 1.71% 1.92% 2.20%
2-Year U.S. T-Note 0.98% 0.88% 0.73% 0.77% 1.20% 1.31% 1.34% 1.38%1.84% 2.27% 2.53% 2.57%
Portfolio Benchmark*0.32% 0.41% 0.49% 0.54% 0.61% 0.69% 0.83% 1.00%1.20% 1.46% 1.75% 2.05%
Portfolio Yield 0.72% 0.79% 0.81% 0.90%0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73%
*Twelve month moving average of a one year
U.S. T-bill yield
Fiscal Year:
2017-2018
2016-2017
2015-2016
2014-2015
2013-2014
QUARTERLY COMMENTARY
September 30, 2018
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Fiscal Year 2015-2016 Fiscal Year 2016-2017 Fiscal Year 2017-2018
2,138,420$ 8,955,045$
1,874,846$
2,298,785$
4,734,315$ 6,999,226$
3,961,973$
1,175,753$ 2,763,135$
4,317,890$ 6,515,166$
2,743,857$ 1,771,206$
1,680,154$ 1,121,491$
2,695,211$
Source: First Southwest Asset
Management Economic Summary
The second quarter GDP growth was +4.2%, the best performance in four years. The initial third quarter GDP numbers are
approaching +4.0%. The economy continues to add jobs, averaging 190k per month in the third quarter as the unemployment
rate slipped to a 49-year low at 3.7%. Tentative signs of wage pressures are beginning to show up, although overall inflation
readings have actually moderated in recent months. The consumer price index retreated to +2.3% in September from +2.9% in
June. Capital spending plans are the highest in a decade and a record 25% of businesses expect to add workers in the coming
months. Market yields trended higher over the third quarter as the two-year Treasury note yield rose from 2.53% to 2.82% and
the ten-year from 2.86% to 3.06%. The Fed funds raised in September, boosting the overnight rate to a range of 2%-2.25%.
Looking forward, a December rate hike is still widely expected and the Fed’s dot plot indicates three more in 2019.
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015
Fiscal Year to Date Earnings
3 Months 6 Months 9 Months 12 Months
849,369$
613,877$
568,824$
1,228,059$
0.00%
1.00%
2.00%
3.00%
Dec-
12
Mar-
13
Jun-
13
Sep-
13
Dec-
13
Mar-
14
Jun-
14
Sep-
14
Dec-
14
Mar-
15
Jun-
15
Sep-
15
Dec-
15
Mar-
16
Jun-
16
Sep-
16
Dec-
16
Mar-
17
Jun-
17
Sep-
17
Dec-
17
Mar-
18
Jun-
18
Sep-
18
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
47
Days to
Maturity
Page 1
Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2018
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
Treasury Securities - Coupon
45U.S. TREASURY3915 7,000,000.00 7,000,543.13 11/15/20181.25001/27/2017 6,992,657.00 1.186912828M64
137U.S. TREASURY3948 10,000,000.00 9,981,208.92 02/15/20190.75006/07/2017 9,940,230.00 1.258912828P53
165U.S. TREASURY3978 5,000,000.00 4,972,518.46 03/15/20191.00004/23/2018 4,968,360.00 2.233912828P95
60U.S. TREASURY3980 5,000,000.00 4,993,206.52 11/30/20181.25005/07/2018 4,992,495.00 2.087912828A34
26,947,477.03 1.57326,893,742.0027,000,000.0026,941,606.39Subtotal and Average 104
Federal Agency Issues - Coupon
4FFCB38974,000,000.00 4,000,025.23 10/05/20180.96006/27/2016 3,999,492.00 0.9023133EFX69
135FFCB393125,000,000.00 24,996,929.17 02/13/20191.20002/13/2017 24,883,675.00 1.2343133EG6Z3
361FFCB39328,000,000.00 8,001,549.60 09/27/20191.55002/16/2017 7,914,624.00 1.5303133EG2D6
241FFCB39375,000,000.00 5,012,943.40 05/30/20191.75002/22/2017 4,975,330.00 1.3523133EDPK2
553FFCB39596,000,000.00 6,005,455.61 04/06/20201.60007/25/2017 5,894,394.00 1.5383133EHEZ2
585FFCB39765,000,000.00 4,979,333.59 05/08/20202.15003/23/2018 4,949,110.00 2.4163133EJCA5
29FHLB39187,000,000.00 6,999,916.22 10/30/20181.15001/30/2017 6,994,323.00 1.1653130AARE0
410FHLB39337,000,000.00 6,987,418.40 11/15/20191.37502/16/2017 6,899,564.00 1.5393130AA3R7
438FHLB39345,000,000.00 5,045,833.63 12/13/20192.37502/16/2017 4,980,010.00 1.5903130A0JR2
505FHLB393920,000,000.00 19,998,968.49 02/18/20201.65003/08/2017 19,697,200.00 1.6543130AAXU7
505FHLB394515,000,000.00 14,994,106.72 02/18/20201.40004/26/2017 14,722,470.00 1.4293130ABAA4
505FHLB395115,000,000.00 15,000,000.00 02/18/20201.50006/29/2017 14,742,150.00 1.5003130ABM29
529FHLB39588,000,000.00 8,039,293.16 03/13/20201.87507/25/2017 7,893,752.00 1.528313378J77
403FHLB39735,000,000.00 4,966,474.18 11/08/20191.45001/25/2018 4,934,125.00 2.0723130AC2Q6
158FHLB39755,000,000.00 4,985,824.49 03/08/20191.50003/23/2018 4,981,565.00 2.1603133782M2
498FHLB397910,000,000.00 9,950,289.20 02/11/20202.12504/23/2018 9,916,370.00 2.5003130ADN32
438FHLB39844,000,000.00 3,999,406.29 12/13/20192.37505/30/2018 3,982,612.00 2.3873130AEDY3
605FHLB39855,000,000.00 5,010,684.47 05/28/20202.62505/30/2018 4,985,890.00 2.4923130AECJ7
196FHLMC39355,000,000.00 4,995,156.27 04/15/20191.12502/22/2017 4,964,650.00 1.3083137EADZ9
150FHLMC39385,000,000.00 5,000,000.00 02/28/20191.37502/28/2017 4,979,575.00 1.3753134GA6H2
578FHLMC39605,000,000.00 4,987,152.11 05/01/20201.37507/25/2017 4,891,100.00 1.5413137EADR7
298FNMA39035,000,000.00 5,000,000.00 07/26/20191.00007/26/2016 4,935,475.00 1.0003136G3XJ9
148FNMA390410,000,000.00 10,009,793.99 02/26/20191.00007/07/2016 9,947,310.00 0.7543135G0J53
149FNMA39093,000,000.00 3,008,452.37 02/27/20191.70008/30/2016 2,992,578.00 0.9953136FTS67
148FNMA391010,000,000.00 10,000,987.17 02/26/20191.00008/30/2016 9,947,310.00 0.9753135G0J53
305FNMA393010,000,000.00 9,961,146.09 08/02/20190.87502/08/2017 9,859,670.00 1.3493135G0N33
515FNMA39365,000,000.00 5,000,000.00 02/28/20201.70002/28/2017 4,927,815.00 1.7003136G4MA8
515FNMA39425,000,000.00 4,993,547.71 02/28/20201.50003/29/2017 4,914,490.00 1.5943135G0T29
Portfolio CITY
NL! APData Updated: SET_MO: 10/17/2018 09:18
Run Date: 10/17/2018 - 09:18 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.1
48
Days to
Maturity
Page 2
Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2018
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
Federal Agency Issues - Coupon
331FNMA39505,000,000.00 4,980,643.58 08/28/20191.00006/14/2017 4,927,935.00 1.4343135G0P49
388FNMA397110,000,000.00 9,896,720.43 10/24/20191.00001/08/2018 9,824,910.00 1.9933135G0R39
236,808,051.57 1.529234,459,474.00237,000,000.00244,201,148.47Subtotal and Average 356
Federal Agency Issues - Callable
255FFCB38955,000,000.00 4,999,764.71 06/13/20191.18006/22/2016 4,953,810.00 1.1873133EGEF8
637FHLMC39536,000,000.00 6,000,000.00 06/29/20201.62506/29/2017 5,879,874.00 1.6253134GBVD1
697FHLMC39654,950,000.00 4,950,000.00 08/28/20201.62508/29/2017 4,838,154.75 1.6253134GBD82
679FNMA39644,806,000.00 4,806,000.00 08/10/20201.70008/29/2017 4,713,042.35 1.6823136G4NZ2
20,755,764.71 1.53320,384,881.1020,756,000.0020,755,751.17Subtotal and Average 569
Municipal Bonds - Coupon
365DALLAS, TX WTR & SWR REV BDS3899 4,000,000.00 4,000,000.00 10/01/20191.21707/07/2016 3,940,160.00 1.21723542JBE4
0DALLAS, TX WTR & SWR REV BDS3900 6,000,000.00 6,000,000.00 10/01/20180.98507/07/2016 6,000,000.00 0.98523542JBD6
226TX A & M UNIV REV BD3902 1,000,000.00 1,000,000.00 05/15/20191.00907/20/2016 990,610.00 1.00988213AFU4
11,000,000.00 1.07210,930,770.0011,000,000.0011,000,000.00Subtotal and Average 153
CDs - CDARS
129CD - CDARS3929 7,000,000.00 7,000,000.00 02/07/20191.67702/09/2017 7,000,000.00 1.677SYS3929
164CD - CDARS3940 10,000,000.00 10,000,000.00 03/14/20191.62603/16/2017 10,000,000.00 1.626SYS3940
290CD - CDARS3955 10,000,000.00 10,000,000.00 07/18/20191.69807/20/2017 10,000,000.00 1.698SYS3955
311CD - CDARS3961 10,000,000.00 10,000,000.00 08/08/20191.69808/10/2017 10,000,000.00 1.698SYS3961
346CD - CDARS3966 5,000,000.00 5,000,000.00 09/12/20191.52309/14/2017 5,000,000.00 1.523SYS3966
42,000,000.00 1.65742,000,000.0042,000,000.0042,000,000.00Subtotal and Average 245
CDs - SLOC
192CD - INDEPENDENT BANK3944 10,000,000.00 10,000,000.00 04/11/20191.62304/13/2017 10,000,000.00 1.623SYS3944
493CD - INDEPENDENT BANK3974 5,000,000.00 5,000,000.00 02/06/20202.29502/08/2018 5,000,000.00 2.295SYS3974
220CD - LEGACYTEXAS BANK3946 10,000,000.00 10,000,000.00 05/09/20191.67705/11/2017 10,000,000.00 1.677SYS3946
255CD - LEGACYTEXAS BANK3949 15,000,000.00 15,000,000.00 06/13/20191.67606/15/2017 15,000,000.00 1.676SYS3949
40,000,000.00 1.74040,000,000.0040,000,000.0040,000,000.00Subtotal and Average 260
Commercial Paper Disc. - Amortizing
49JP MORGAN SECURITIES LLC3977 5,000,000.00 4,983,190.28 11/19/20182.47004/23/2018 4,983,665.00 2.57946640QLK5
144JP MORGAN SECURITIES LLC3983 6,000,000.00 5,940,480.00 02/22/20192.48005/30/2018 5,939,460.00 2.59746640QPN5
Portfolio CITY
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49
Days to
Maturity
Page 3
Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2018
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
Commercial Paper Disc. - Amortizing
71NATIXIS NY BRANCH3982 5,000,000.00 4,976,037.50 12/11/20182.43005/30/2018 4,976,475.00 2.54963873KMB0
136TOYOTA MOTOR CREDIT3986 20,000,000.00 19,820,177.77 02/14/20192.38009/11/2018 19,811,960.00 2.43889233HPE8
35,719,885.55 2.50035,711,560.0036,000,000.0029,088,924.17Subtotal and Average 116
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXSTAR3641 194,701,746.74 194,701,746.74 1.940194,701,746.74 1.940SYS3641
194,701,746.74 1.940194,701,746.74194,701,746.74158,333,508.01Subtotal and Average 1
Insured Cash Sweep Savings Deposits
1INSURED CASH SWEEP SAVINGS3962 0.00 0.00 1.9500.00 1.950SYS3962
0.00 0.0000.000.0010,000,000.00Subtotal and Average 0
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 1,634,710.30 1,634,710.30 0.8001,634,710.30 0.800SYS3706
1,634,710.30 0.8001,634,710.301,634,710.302,343,655.53Subtotal and Average 1
1.732584,664,593.73 610,092,457.04 206606,716,884.14 609,567,635.90Total and Average
Portfolio CITY
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50
Days to
Maturity
Page 4
Par Value Book Value Stated
RateMarket Value
September 30, 2018
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
0.00
1.732584,664,593.73 610,092,457.04 206
0Average Balance
606,716,884.14 609,567,635.90Total Cash and Investments
Portfolio CITY
NL! APData Updated: SET_MO: 10/17/2018 09:18
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51
Leap Frogs, Karmien Bowman – North Lakes Park
52
Section 5
City of Denton
Quarterly Financial Report
September 2018
PERFORMANCE REPORT
53
STRATEGIC PLAN 2017-18
The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that
capture the City’s Vision, Mission, and Value statements. The first Strategic Plan was formally
approved by the City Council in April 2011, and it has been updated periodically since that time. Over
the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our
strategic outcomes and identify measurable ways to mark our progress. The City Council approved
the FY 2017-18 Strategic Plan and associated performance measures on September 19, 2017.
The Strategic Plan serves as the basis for resource allocation decisions that are used in the
development of the FY 2017-18 Budget. The Strategic Plan is organized into five Key Focus Areas
(KFAs) and major goals associated with each KFA are also identified below.
Key Focus Area 1: Organizational Excellence
Goal 1.1 Manage financial resources in a responsible manner.
Goal 1.2 Develop a high-performance work force.
Goal 1.3 Promote effective internal and external communication.
Goal 1.4 Achieve high level of customer satisfaction.
Goal 1.5 Utilize technology to enhance efficiency and productivity.
Goal 1.6 Collaborate with local, regional, state, and federal partners.
Key Focus Area 2: Public Infrastructure
Goal 2.1 Optimize resources to improve quality of City roadways.
Goal 2.2 Seek solutions to mobility demands and enhance connectivity.
Goal 2.3 Promote superior utility services and facilities.
Goal 2.4 Manage drainage infrastructure.
Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.
Key Focus Area 3: Economic Development
Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth.
Goal 3.2 Make Denton a destination for visitors.
Goal 3.3 Promote a business-friendly environment.
Goal 3.4 Encourage development, redevelopment, recruitment, and retention.
Key Focus Area 4: Safe, Liveable and Family Friendly Community
Goal 4.1 Enhance public safety in the community.
Goal 4.2 Seek clean and healthy neighborhoods in Denton.
Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.
Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities.
Goal 4.5 Provide support to citizens in need through social service agencies and programs.
Key Focus Area 5: Sustainable & Environmental Stewardship
Goal 5.1 Manage Denton’s water resources.
Goal 5.2 Improve air quality and greenhouse gas management.
Goal 5.3 Improve energy efficiency and conservation.
Goal 5.4 Manage land use and preserve open/natural spaces.
Goal 5.5 Provide alternative modes of transportation.
Goal 5.6 Promote sustainable materials resource management.
Goal 5.7 Encourage local food production.
54
STRATEGIC PLAN 2017-18
The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization.
While every department has some level of responsibility for each KFA, the matrix is intended to only
highlight the primary departments responsible for each KFA.
SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5
UTILITIES
Electric
Water
Wastewater
Solid Waste
INTERNAL SERVICES
Technology Services
Materials Management
Fleet
Risk
NEIGHBORHOOD SERVICES
Building Inspection
Community Improvement Services
Libraries
Parks and Recreation
Planning
Gas Well Operations
Community Development
PUBLIC SAFETY
Animal Services
Fire
Police
Municipal Court
TRANSPORTATION
Airport
Streets
Traffic/Transportation
ADMINISTRATIVE SERVICES
City Manager’s Office
Economic Development
Facilities Management
Finance
Human Resources
Internal Audit
Legal
Public Communications
Key Focus Area 1: Organizational Excellence
Key Focus Area 2: Public Infrastructure
Key Focus Area 3: Economic Development
Key Focus Area 4: Safe, Liveable and Family-Friendly Community
Key Focus Area 5: Sustainable & Environmental Stewardship
55
STRATEGIC PLAN PERFORMANCE DASHBOARD 2017‐18KEY FOCUS AREA DEPARTMENTSTRATEGIC PLAN PERFORMANCE MEASURESTARGET 4TH QTRPERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS85% 94.7%PERCENTAGE OF BILLING ACCURACY99% 99.97%PERCENTAGE OF PAYMENTS PROCESSED VIA ONLINE SELF‐SERVICE55% 62.49%PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION65% 60%NUMBER OF FOLLOWERS ACROSS ALL CITY SOCIAL MEDIA SITES165,000 214,411PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE100% 101.7%PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED EXPENDITURES<100% 98.3%ANNUAL RATE OF INVESTMENT RETURN1.25% 1.73%ENGINEERINGPERCENTAGE OF BOND FUNDED PROJECTS COMPLETED85% 84%LANE MILES OF ASPHALT ROADWAY RECONSTRUCTED12 15.87LANE MILES OF ASPHALT ROADWAY OVERLAID15 16.14LANE MILES OF ASPHALT ROADWAY MICRO‐SEALED450MILES OF SIDEWALK RECONSTRUCTED24.61AIRPORTNUMBER OF ACRES OF AIRPORT LAND NEWLY LEASED70NUMBER OF RFP'S RETURNED IN TARGET INDUSTRY SECTORS2015NUMBER OF WORKFORCE DEVELOPMENT ACTIVITIES OR GRANTS FACILITATED1234NUMBER OF DOWNTOWN PROPERTIES REDEVELOPED616NUMBER OF BUSINESS RETENTION VISITS IN THE DOWNTOWN AREA2417NUMBER OF BUSINESS RETENTION VISITS IN AREAS OTHER THAN DOWNTOWN4843POLICEPERCENT OF RESOLVED NEIGHBORHOOD COMPLAINTS75% 100%PERCENT OF ACTIVE STRUCTURE FIRES RESPONDED TO IN FIVE MINUTES OR LESS (NFPA 1710 STANDARD IS 90 PERCENT OR LESS THAN FOUR MINUTES)90% 51.2%AVERAGE UNIT TURN‐OUT TIME (TIME FROM WHEN A 911 DISPATCH IS RECEIVED TO WHEN UNITS ARE IN ROUTE)1.20 1.14PARKSNUMBER OF SPECIAL EVENTS HOSTED BY THE PARKS & RECREATION DEPARTMENT812NUMBER OF INDIVIDUALS REACHED BY THE DENTON PUBLIC LIBRARY "DPL2GO" OUTREACH SERVICE5,000 21,083NUMBER OF "DPL2GO" OUTREACH EVENTS60 156SOLID WASTEPOUNDS OF WASTE DISPOSED PER CAPITA1,900 1,760MILES OF ON‐STREET BIKE INFRASTRUCTURE, SUCH AS BIKE LANES AND SHARROWS, ADDED DURING FISCAL YEAR 2017‐1878.8NUMBER OF TRANSPORTATION SAFETY EDUCATIONAL OPPORTUNITIES AND EVENTS1112NUMBER OF SUSTAINABILITY RELATED WORKSHOPS HOSTED BY THE CITY3554PERCENT OF GREENSENSE REBATE FUNDING EXPENDED100% 67%ENGINEERINGENVIRONMENTAL SERVICESKFA 5: SUSTAINABLE AND EVIRONMENTAL STEWARDSHIPFINANCESTREETSKFA 4: SAFE, LIVEABLE, AND FAMILY‐FRIENDLY COMMUNITYFIRELIBRARYKFA 3: ECONOMIC DEVELOPMENTKFA 1: ORGANIZATIONAL EXCELLENCECUSTOMER SERVICEPUBLIC COMMUNICATIONSKFA 2: PUBLIC INFRASTRUCTURE ECONOMIC DEVELOPMENT56
STRATEGIC PLAN
WORK PLAN REPORT 20 17-18
City of Denton, Texas
57
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 4TH QTR
Implement online payment and citizen service request systems Dec 2017 The application launched June 18, 2018 with a planned 90-day
soft launch.
Launch a bi-monthly newsletter for citizens and stakeholders Dec 2017
The City has continued production of the bimonthly Resident
Update. Past issues can be found at
https://www.cityofdenton.com/en-us/stay-updated under
Important Documents.
Expand open data initiatives and improve citizen access to information Sep 2018 There are currently 152 total datasets available at
http://data.cityofdenton.com.
Hold regular performance management meetings with departments and
executive team Sep 2018
Developing an alternative strategy to identify performance
measures that will provide greater clarity into the City's various
operations and be a more effective tool for management staff.
Offer key indicators of the City’s performance through an online
dashboard Dec 2017
A dashboard of the City's performance related to strategic plan
measures is located at
http://data.cityofdenton.com/base/strategic-performance-
measures
Evaluate purchasing and contract management policies and procedures Jun 2018
Staff is continue to test a new contract management software
and developing related training materials. In preparation for
implementation staff has developed updated contract
templates.
Complete 80% of construction on the new West Parallel Runway Sep 2018 TxDOT solicited construction contract, with construction to
begin FY2018/19 Q1.
Complete the Airport Business Plan Update Sep 2018 Drafting documents for Council Airport Committee review,
followed by formal public input process.
Traffic Engage a consultant to assist with review of railroad crossings in the city,
as well as possible Quite Zones Sep 2018
Diagnostic review has been completed and Union Pacific is
currently working on the design of improvements for the Quiet
Zones.
Complete 85% of scheduled street improvement projects for Fiscal Year
2017-18 Sep 2018 Completed *84% of the planned projects.*Cumulative Total.
Complete the 2012 and 2014 bond programs for street improvements Sep 2018
During the fourth quarter the Street Department completed 18
bond segments. The total for this fiscal year is 49 segments and
18 non-bond funded segments. The combined total for this
fiscal year is 67 segments.
Econ Development Actively recruit prospects from target industries, as identified by the
Economic Development Partnership Board Sep 2018
Economic Development returned 1 RFP response in Q4, bringing
the total responses to 14, or 70% of the FY17-18 target. Note:
RFPs are issued by the Governor's Office of Economic
Development or the Dallas Regional Chamber. We can only
respond if Denton meets the site criteria in the RFPs.
City Manager Office
KFA 1:
ORGANIZATIONAL
EXCELLENCE
Development
Services
KFA 3: ECONOMIC
DEVELOPMENT
Airport
Capital Projects
KFA 2: PUBLIC
INFRASTRUCTURE
Implement recommendations to improve the development review and
building inspections processes Dec 2017
Development Services has implemented a majority of the
consultants recommendations. Staff expects all of the accepted
recommendations to be completed by March 2019.
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STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 4TH QTR
Complete the Denton Code 2030 Update June 2018
Development Services staff has continued meeting with the
Development Code Review Committee in crafting the Denton
Development Code update. There were a total of 14 meetings
held in Fiscal Year 2017-2018.
Complete updates to building standards and design policies under the
City’s Site Design Criteria Manual and related documents June 2018 Staff has continued to receive public comments and will be
adopted in conjunction with the Denton Development Code.
Complete remodel of the Public Safety Communications Center Sep 2018
Waiting on Brinkley Sargent Wigintion Architect's concept plan.
In the meantime, other minor improvements have been made
to facility to include, new paint, new refrigerator and
microwave. Additionally, staff is moving towards replacing
dispatch consoles.
Purchase and implement a new Computer Aided Dispatch (CAD) system
to upgrade technology and improve public safety response, data and
records
June 2018
Police, Fire and Technology Services are currently evaluating
demos from other cities during the month of November. The
committee anticipates a decision to be made on CAD vendor by
end of December.
Implement an Automatic Fire Station Alerting System Sep 2018
Station Alerting is a multi-year strategy with US Digital Designs.
Equipment has been installed at Stations: 1,4,5,6,and 8. Funding
for Station 7 was approved as supplemental request for the FY
18-19 Budget. The Fire Department is currently working on
obtaining updated quotes for installation.
Add on Fire Medic unit in the Northeast Denton area June 2018 The Medic unit at Station 4 is in service.
Complete construction of Fire Station #4 March 2018
The training facility project had substantial completion at the
end of September 2018. A grand opening will be held in the fall
of 2018. Classes will begin the week of October 8, 2018.
Upcoming classes include a department wide Standpipe Class in
the Tower and Live Fire Training the first full week of November
2018.
Use GIS mapping to determine population distribution in relation to City
recreational amenities Sep 2018 Staff is working with GIS to provide maps.
Implement recommendations from Denton Parks playground
replacement plan
Sep 2018
Playgrounds delivered. Work in progress for Milam, Denia, and
Fred Moore playgrounds. Estimated completion is Dec. 2018.
Delayed from original estimate due to weather.
Community
Development
Continue partnership with the Denton County Homeless Leadership
team to collect and analyze data on housing and service needs Sep 2018
In partnership with the Denton County Homeless Leadership
Team (HLT) , the Mayor, Council Member K. Briggs, and CD staff
contributed a total of 17 hours at HLT meetings and planning
sessions. City Staff contributed a minimum of 91 additional
hours to support the HLT through the HLT Ad-Hoc, Housing, and
Data Workgroups in meetings and in activities to collect and
analyze data on housing and service needs.
Development
Services
KFA 3: ECONOMIC
DEVELOPMENT
Parks
KFA 4: SAFE, LIVEABLE,
AND FAMILY-FRIENDLY
COMMUNITY
Public Safety
Fire
59
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 4TH QTR
Develop a comprehensive public education program to educate
residents on code requirements Sep 2018
Development Services continues to receive feedback, educate
stakeholders on the Denton Development Code Update, Public
Draft and Draft Zoning Map, adoption of the 2018 building
construction & fire codes and updated food establishment
rules. The Department continues to develop a comprehensive
public education outreach program.
Engage homeowner's associations and neighborhood groups to improve
neighborhoods through code compliance Sep 2018
During the fourth quarter Development Services staff continue
to attend special events and neighborhood meetings, receiving
feedback on the DDC update and Draft Zoning Map, and
promoting the Neighborhood Project Matching Grant.
Electric Complete construction of the Denton Energy Center Sep 2018
The Denton Energy Center (DEC) construction is 100%
complete. DME received notification from ERCOT on July 11,
2018 that the DEC had successfully passed the final step in the
ERCOT Resource Commissioning Requirements and that it was
officially approved for participation in ERCOT market
operations. Security wall fencing and overall site restoration
activities were ongoing and are targeted to be complete in first
Quarter of FY18/19. Approximately 94% of originally budgeted
DEC project funds have been expended. Final new construction
punch list items are being knocked out, and a few initial
warranty services have commenced.
Solid Waste Complete construction of Cell 3 to expand capacity at the landfill Sep 2018
The landfill cell construction was completed in Q2, and waste
disposal activities have commenced in the new cell. The project
is complete.
Environmental
Services Engage the community and update the City's 2012 Sustainability Plan March 2018 Staff has completed draft is working on design of document for
presentation to public
Electric Review the City's renewable energy portfolio and present options to
increase renewable energy Dec 2017
DME’s progress towards contracting 100% renewable energy by
2020 has continued through Q4 with additional renewable
resource readiness preparation for solar and participation in
solicitations for additional renewable supply offers. DME
anticipates that more supply contracts will be ready for
approval by City Council and executed prior to calendar year
end, ensuring that the 2020 objective remains on track. DME
continuously assesses the market place and technologies, for
opportunities to secure renewable resources, that are
operationally effective, at price levels and with terms that will
be incrementally valuable to the rate payers and citizens of
Denton.
Development
Services
KFA 5: SUSTAINABLE
AND ENVIRONMENTAL
STEWARDSHIP
KFA 4: SAFE, LIVEABLE,
AND FAMILY-FRIENDLY
COMMUNITY
60
Sculpture by James Surls at the Civic Center
61