HomeMy WebLinkAboutDecember 18, 2001 Agenda AGENDA
CITY OF DENTON CITY COUNCIL
December 18, 2001
After determ~mng that a quorum is present and convening in an Open Meeting, the C~ty Council
will convene in a Closed Meeting of the City of Denton C~ty Council on Tuesday, December 18,
2001 at 5:00 pm. in the Czty of Denton Council Work Sesszon Room, Denton C~t~ Hall, at 215
East McK~e~, Denton, Texas to consider spemfic ~tems when these ~tems ~e hsted below
~der the Closed Mecnng secnon of th~s agenda ~en ~tems for cons~deranon ~e not hsted
~der the Closed Meenng secnon of ~e agenda, the C~t~ Co.cd will not conduct a Closed
Meeung at 5 15 p m ~d will convene at the ume hsted below for ~ts regul~ or specml called
meenng The Czt~ Council rescues ~e right to adjo~ ~nto a Closed MeeUng on ~ ztem on ~ts
Open Meeting agenda consistent w~ Chapter 551 of~e Texas Gove~ent Code, as ~ended,
as set fo~ below
1 Closed Meeting
A Consultation w~th A~omey - Under TEXAS GOVERNMENT CODE Section
551 071
(1) D~scuss ~d consider strategy, status, ~d possible settlement of lmgat~on
wath ~e City's a~omeys in lmgat~on styled C~ of Denton, et al v T~
Electrtc Company, et al, Cause No 009383 c~ently pen&ng ~n the 134th
D~smct Corn of Dallas Cowry, Texas, ~d d~scuss legal ~ssues
concerning this litigation w~th the attorneys where to &scuss these matters
~n pubhc would conflict ruth the duty of ~e C~ty's attorneys to the C~ty
Council ~der ~e Texas Dlsclphn~ Rules of Professional Conduct of the
State B~ of Texas
B, Dehberat~ons reg~&ng real prope~y - Under TEXAS GOVERNMENT CODE
Secnon 551 072
(1) Dehberate the p~chase ~d value of real property ~merests of ce~am real
propemy comprmng two ~acts containing approximately l0 868 acres of
l~d, located ~n ~e C~ty of Denton, Denton County, Texas m ~e N
Briton Su~ey, Abstract No 51, being approximately 860 feet west of the
intersection of Montemto Drive & H~cko~ Creek Road, no~h s~de of
road
ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBE~TED IN A CLOSED
MEETING WILL ONLY BE TArN ~ AN OPEN MEETING THAT IS HELD 1N COMPLIANCE
WITH TE~S GOVE~MENT CODE, C~PTER 551, EXCEPT TO THE EXTENT SUCH F~AL
ACTION, DECISION, OR VOTE IS TArN IN THE CLOSED MEETING ~ ACCO~ANCE WITH
THE PROVISIONS OF ~551 086 OF THE TE~S GOVERNMENT CODE (THE "PUBLIC POWER
EXCEPTION") T~ CITY CO~CIL ~SERVES THE RIGHT TO ADJOURN INTO A CLOSED
MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX GOV'T CODE, ~551 001, ET
SEQ (T~ TE~S OPEN MEET~GS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA
OR TO ~CONVENE ~ A CONT~ATION OF THE CLOSED MEETING ON THE CLOSED
MEETING ITEMS NOTED ABOVE, IN ACCO~ANCE WITH THE TEXAS OPEN MEETINGS
ACT, INCLUD~G, WITHOUT LIMITATION ~551071-551086 OF THE TE~S OPEN
MEETINGS ACT
City of Denton City Council Agenda
December 18, 2001
Page 2
Regular Meeting of the City of Denton City Council on Tuesday, December 18, 2001 at 6 00
p m in the Council Chambers at City Hall, 215 E McKlnney Street, Denton, Texas at which the
following items will be considered
1 Pledge of Allegiance A U S Flag
B Texas Flag
"Honor the Texas Flag -- I pledge allegiance to thee, Texas, one and indivisible"
PROCLAMATIONS/PRESENTATIONS
2 December Yard-of-the-Month Awards
3 Proclamation for LINT Mean Green
4 Presentation of Achievement of Excellence in Procurement Award to City of Denton
Pumhasmg Department
5 Presentation of State Risk Management Achievement Award
6 Recognition of staff accomplishments
CITIZEN REPORTS
7 Ross Melton regarding the Police Department stopping people without just cause
CONSENT AGENDA
Each of these items is recommended by the Staff and approval thereof will be strictly on
the basis of the Staff recommendations Approval of the Consent Agenda authorizes the City
Manager or his demgnee to implement each item ~n accordance w~th the Staff recommendaOons
The City Council has received background information and has had an opportunity to rinse
questions regarding these items prior to consideration
Listed below are bids, purchase orders, contracts, and other items to be approved for
payment under the Consent Agenda (Agenda Items 8-26) This hst~ng is provided on the
Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of
the Consent Agenda If no items are pulled, Consent Agenda Items 8-26 below will be approved
w~th one motion If items are pulled for separate discussion, they will be considered as the first
items following approval of the Consent Agenda
8 Consider approval of the m~nutes of November 12 and November 13, 2001
9 Cons:der adoption of an ordinance authorizing the Mayor to enter into an Interlocal
Cooperation Agreement with Denton County for library services, and providing an
effective date
Cay of Denton City Council Agenda
December 18, 2001
Page 3
10 Consider adoptmn of an ordinance approving and authorizing the Mayor to execute an
lnterlocal ambulance agreement between the City of Denton and Denton County for
ambulance services, and declaring an effective date
11 Consider adoption of an ordinance authonmng the City Manager to enter into a lease
agreement between the C~ty of Denton, Texas and Denton Area Teachers Credit Union,
authorizing the expenditure of funds, and providing for an effective date
12 Consider adoption of an ordinance authorizing the City Manager to enter into a lease
agreement between the C~ty of Denton, Texas and Sue Burr, authorizing the expenditure
of funds, and providing for an effective date
13 Consider approval of a resolution rewew~ng and adopting the Investment Policy for funds
for the City of Denton, designating an investment officer, providing a savings and
repealing clause, and providing an effective date
14 Consider acceptance of the fiscal year 2000-2001 Annual Investment Report m
accordance w~th the Pubhc Funds Investment Act
15 Consider approval of a resolution to declare the intent to reimburse expenditures from the
retained earnings of the Electric Fund with revenue bonds so that projects approved in the
2001-2002 Capital Improvement Budget may be commenced, and promdmg an effective
date (Projects-S1,000,000 00 for Electric Distribution Projects and $4,338,000 00 for
Electric Substations Projects)
16 Consider adoption of an ordinance of the C~ty of Denton, Texas anthonzmg the City
Manager to execute an agreement for professional legal services with Lloyd, Gossehnk,
Blevlns, Rochelle, Baldwin & Townsend, P C, for legal services pertaunng to
representatmn of the City before the Public Uttht~es Commission of Texas, m the areas of
Pubhc Utthty Regulatory Law and Administrative Law, respecting the actlvit~es of
Denton Municipal Electric, authorizing the expenditure of funds therefore, providing for
retroactive effect of the agreement, and providing an effective date
17 Consider adoption of an ordinance authorizing the Mayor to execute amendments to the
CY2001 and CY2002-2004 agreements between the City of Denton and The Denton
Chamber of Commerce (Convention and V~sltors Bureau) for the payment and use of
Hotel Tax Revenue, and providing an effective date
18 Conmder approval of a resolution of the City Council of the City of Denton, Texas,
approwng the proposal of the Denton Central Apprmsal District to construct an addition
to ~ts facility out of current funds, prowd~ng that this resolution shall create no financial
obhgatlons on the City of Denton, and providing an effective date
19 Consider adoption of an ordinance of the City of Denton, Texas amending the schedule
of rates contmned ~n Ordinance No 2001-337 for electric service, cancehng and
repealing the Energysave Program (Schedule EP) effective January 1, 2002, prowding for
a repealer, providing for a severabthty clause, and prowdlng an effective date
City of Denton C~ty Council Agenda
December 18, 2001
Page 4
20 Consider adoption of an ordinance accepting competmve b,ds and awarding a pubhc
works contract for the construct,on of the Sherman, Pennsylvama, Gregg and Ponder
Street Pawng Projects, providing for the expend,ture of funds therefore, and prov,d,ng an
effective date (Bid 2757 - Sherman, Pennsylvan,a, Gregg and Ponder Street Paving
ProJect awarded to Jagoe Pubhc Company ~n the amount of $870,823 05)
21 Consider adopt,on of an ordinance accepting compet,t,ve sealed proposals and awarding
a contract for the purchase of material, supphes or servmes, prov,d,ng for the expend,mm
of funds therefore, and prov,d~ng for an effect,ve date (RFSP 2766 - Excess Lmbthty
Insurance awarded to North R~ver Insurance Company m the amount of $179,000 for a
one-year contract permd)
22 Cons,der approval of a resolution of the C,ty of Denton, Texas, approv,ng the ehg,bthty
of the structure located at 525 S Locust, Denton, Texas, for tax exemption for
historically slgmficant s,tes pursuant to Chapter 10, Art,cle VII Code of Ord,nances of
the City of Denton, Texas, authorizing the C,ty Manager to execute a tax exemption
certfficate, and declanng an effect,ve date (Historic Landmark Comm,ss,on
recommends approval 6-0)
23 Consider the adoption of an ord,nance anthonz,ng the C,ty Manager or h,s des,gnee to
execute a R~ght-Of-Way Agreement with Southwestern Gas P~pehne Inc, for a gas
plpehne located in the J McDonald Survey, Abstract No 1610, Denton County, Texas,
authorizing the acceptance of funds therefore, and prov,d~ng an effective date
24 Consider adoption of an ord,nance approv,ng a real estate contract between the C,ty of
Denton and Ranch Ventures, Ltd relating to the purchase of two tracts comprising
apprommately 10 868 acres of land located ,n the N Bntton Survey, Abstract No 51, for
use as a park, authorizing the expenditure of funds therefore, and providing an effective
date
25 Cons,der approval of a resolution to approve certa,n matters as reqmred by Sect,on 147(0
of the Internal Revenue Code in connection w,th the ,ssuance of tax-exempt obhgat~ons
by the Roman Forest H~gher Education Factht,es Corporation for the benefit of Cathohc
Diocese of Fort Worth, and providing an effect,ve date
26 Consider adoption of an ordinance authonz,ng the C,ty Manager of the C~ty of Denton,
Texas, to execute a Profess,onal Services Contingent Fee Agreement w, th the Strasburger
& Price, L L P and the Sayles, L,dj, & Werbner, L L P Law F,rms to prosecute htigatmn
styled The Ctty of Denton, et al v TXU, et al, Cause No 009383, now pend,ng ,n the
th
134 Jud~cml Dlstr~ct Court of Dallas County, Texas, and to perform other legal services
m accordance w~th that contingency contract, amend,ng and replacing the current
contract for professional legal servxces w,th Strasburger and Price, L L P, anthonzmg the
e:$pendlture of funds for expert witness fees and court costs, authonz,ng an assessment
not to exceed $ 25 per capita to pay such costs, des,gnat,ng a ha, son, and prov,d,ng an
effective date
City of Denton Cay Council Agenda
December 18,2001
Page 5
PUBLIC ttEARINGS
27 Hold a pubhe hearing and consider adoption of an ordinance rezomng approximately
13 2 acres from an Agricultural (A) zoning district to a One-Family Dwelling (SF-7)
zomng district The property is generally located on the east side of Mockingbird Lane
approximately 450 feet south of ~ts intersection with Audra Lane A s~ngle-famfly
sub&vision of approximately 55 homes is proposed The Planning and Zoning
Comm~ssion recommends approval w~th condmons (5-0) (ZPOl-O037)
28 Hold a pubhc hearing and consider adoption of an ordinance allowing the negot~aUon of
the best b~d for a contract for the off and gas lease agreement at the Mumc~pal Airport in
substantmlly the same form as Bid 2769, and providing an effective date (B~d 2769 -
Off and Gas Lease Agreement, best b~d, Superior P&E LLC/Enexco, Inc )
29 Hold a pubhc heanng and conmder adoption of an ordinance accepting junsdmt~on of a
complmnt filed by Spencer Generating Company, L P (Spencer) agmnst TXU Lone Star
P~pehne (TXU) clmmmg TXU ~s attempting to charge rates for gas utility service to the
Spencer Generating Station, making findings w~th respect to the complmnt filed by
Spencer agmnst TXU for fmlure to prowde gas utility servme on reasonable terms,
ordering interim rehef by requmng TXU to mmntmn gas utility service to the Spencer
Generating Station under the emst~ng Agreement between TXU and Spencer without
~nterrupt~on after December 31, 2001, until a just and reasonable rate is established or
until TXU and Spencer reach an agreement on a just and reasonable rate, ordenng an
investigation to make sure that rates charged by TXU to Spencer Generating Company or
other C~ty of Denton industrial ratepayers are not discriminatory or preferentml,
authorizing the h~nng of rate consultants, providing for the recovery of rate expenses,
providing a severabfltty clause, and providing an effective date
ITEMS FOR INDIVIDUAL CONSIDERATION
30 Consider adoption of an ordinance of the City Council of the C~ty of Deuton, Texas,
approwng an amendment to the gmdehnes for the Rental Rehabilitation Program and
ehglbfl~ty criteria, authorizing expenditures in excess of $15,000 for projects meeting
program guidelines and cnterm, and prowdlng for an effective date
31 Consider adoption of an ordinance on third reading granting to TXU Gas Distribution, a
dtv~s~on of TXU Gas Company, ~ts successors and assigns, a franchise to furnish,
transport and supply gas to the general public in the City of Denton, Denton County,
Texas, for the transporting, dehvery, sale, and d~strlbutlon of gas ~n, out of, and through
smd munlc~pahty for all purposes, provid~ng for the payment of a fee or charge for the
use of the streets, alleys, and pubhc ways, repeahng all prewous gas franchise ordinances
and ordinances ~n confhct herewith, providing that it shall be ~n heu of other fees and
charges, excepting ad valorem taxes, prescnbtng the terms, conditions, obhgatlons and
hm~tat~ons under whmh such franchise shall be exermsed, providing a sawngs clause, a
severabfltty clause, and an effective date
32 Consider nominations and appointments to the C~ty's Boards and Comunss~ons
C~ty of D~nton C~ty Council Agenda
December 18, 2001
Page 6
33 New Business
Th~s ~tem prowdes a section for Cotmcfl Members to suggest ~tems for future agendas or
to request ~nformat~on from the C~ty Manager
34 Items from the C~ty Manager A Notification of upcoming meetings and/or conferences
B Clarification of ~tems on the agenda
35 Possible Continuation of Closed Meeting under Sections 551 071-551 086 of the Texas
Open Meetings Act
36 Offieml Action on Closed Meeting Item(s) under Sections 551 071-551 086 of the Texas
Open Meetings Act
CERTIFICATE
I certify that the above not,ce of meeting was posted on the bulletin board at the C~ty Hall of the
C~ty of Denton, Texas, on the day of ,2001 at o'clock
(am)(pm)
CITY SECRETARY
NOTE THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT THE CITY WILL
PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF
REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING
PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE
TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-
RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED
THROUGH THE CITY SECRETARY'S OFFICE
November 12, 2001 Oat~__/_~~-
The City of Denton C~ty Councd held an Informational Briefing Session on Monday, November
12, 2001 at 5 30 p m m the Council Work Session Room at C~ty Hall
PRESENT Mayor Brock, Mayor Pro Tem Beasley, Council Members Burroughs, Fulton,
McNefll, Pinlhps and Redmon
ABSENT None
1 The Council received a report, held a dmcuss~on, and gave staff &rect~on regarding the
draft Development Code
Doug Powell, D~rector of Planmng and Development stated that there were four outstan&ng
~ssues from the prior meeting on the Development Code (1) enwronmentally sensitive areas and
related ~ssues ~n the ET J, (2) outstanding Planmng and Zomng Commission recommendations
that were not reflected m the draft code, (3) mult~-famdy concentratmns and (4) mapping ~ssues
Council chscussed the pros and cons to having the code reqmrements for enwromnentally
sensitive areas extend rote the ETJ Consensus of the Cotmcfl was to include the flood plmn
areas ~n the ETJ ~n the ESA Council &scussed and developed a consensus on the ~ssues hsted m
Attachment 3 of the agenda back-up materials plus the multi-family concentrations ~ssue Staff
would ~ncorporate the direction g~ven by the Council on each ~ssue Mapping ~ssues were not
drscussed at tins meeting
2 The Councd d~d not meet ~n a Closed Meeting dunng tins session
W~th no further bus~ness, the meeting was adjourned at 8 40 p m
EULINE BROCK, MAYOR
CITY OF DENTON, TEXAS
JENNIFI~R WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS
CITY OF DENTON CITY COUNCIL MINUTES
November 13, 2001
After determlmng that a quorum was present and convening ~n an Open Meeting, the City
Council convened ~n a Closed Meeting on Tuesday, November 13, 2001 at 5 15 p m m the Ctty
of Denton Council Work Session Room
PRESENT Mayor Brock, Mayor Pro Tem Beasley, Council Members Burroughs, Fulton,
McNedl, Ph~lhps and Redmon
ABSENT None
1 The Council considered the following m Closed Meeting
A Consultation with Attorney - Under TEXAS GOVERNMENT CODE Section
551 071
(1) Considered and dmcussed possible settlement of lmgation styled
Muntctpal Adrntntstrative Services, Inc v Ctty of Denton, Cause No 99-
50263-367, on appeal from the 367th District Court of Denton County,
Texas
Special Called Session of the City of Denton City Council on Tuesday, November 13, 2001 at
6 00 p m an the Work Session Room at City Hall
1 The Council considered adoption of an ordinance amending Ordinance No 2001-135 of
the City of Denton, Texas, amending the procedures for adoption of the Denton Development
Code, a comprehensive rewrite of the City of Denton's development regulations pursuant to
Texas Local Government Code §211 006 to provide for notme and a joint public heanng
between the Planning and Zomng Commlssxon and the Denton C~ty Council, and prowdlng for
an effectxve date
The folloWing ordinance was considered
NO 2001-434
AN ORDINANCE AMENDING ORDINANCE NO 2001-135 OF THE CITY OF
DENTON, TEXAS, AMENDING THE PROCEDURES FOR ADOPTION OF THE
DENTON DEVELOPMENT CODE, A COMPREHENSIVE REWRITE OF THE CITY
OF DENTON'S DEVELOPMENT REGULATIONS PURSUANT TO TEXAS LOCAL
GOVERNMENT CODE §211 006 TO PROVIDE FOR NOTICE AND A JOINT
PUBLIC HEARING BETWEEN THE PLANNING AND ZONING COMMISSION
AND THE DENTON CITY COUNCIL, AND PROVIDING FOR AN EFFECTIVE
DATE
Burroughs motioned, Beasley seconded to adopt the ordinance On roll vote, Beasley "aye",
Burroughs "aye", Fulton "aye", McNelll "aye", Phtlhps "aye", Redmon "aye", and Mayor Brock
"aye" Motmn camed unanimously
C~ty of Denton Clty Council Minutes
November 13, 2001
Page 2
Following the completion of the Special Called Session, the Council convened into a Work
Session
1 The Council received a report, held a discussion, and gave staff d~rect~on regarding the
draft Development Code
Joyce Pool spoke to the Council regarding the draft Development Code She urged the Council
to hold adequate pubhc heanngs on the proposal so that the meeUngs did not mn very late, as
people would not stay at the meeting If It were very late
Doug Powell, Director of Planning and Development, stated that there was one outstanding issue
deahng with mapping issues Attachment 5 In the agenda back-up materials outlined the
outstanding mapping Issues
Council discussed and determined by consensus the outstanding mapping ~ssues as noted In the
attachment
2 New Business
There were no items of New Business suggested by Council
With no further bus~ness, the meeting was adjourned
EULINE BROCK, MAYOR
CITY OF DENTON, TEXAS
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS
THE DENTON DEVELOPMENT CODE
PUBLIC COMMENT REMAINING ISSUES AND
COMPREHENSIVE PLAN AMENDMENTS - 11-13-2001
CITY OF DENTON, TEXAS
MAP"A" Remainln Issues
1 445 l'hls ~s currently the Surrounding land Change to NR-4
Denton Optimal Club use pattern only
on North Elm Currently justifies an
zoned SF-7 Future increase fo NR-4
Zoning NR-3 Would
I~ke h~gher zoning
dasslflcahon to NRMU-
12
2 481 Razor Property on 1-35 H~gher density Leave as ~s on the
Currently zoned A other than map
and proposed zoning proposed by
to NCMU and NCR-6 staff, can only be
Important property supported w~fh a
Trustee asked Council master plan
to look at a h~gher
~nfens~ty of zoning No
specific dlstnct was
requested
3 498 Duncan Street to Smith Staff Change the block
Street Current zoning recommends th~s to EC-I w~th the
~s C, proposed zoning area be moved exception of the
~s DC-G Uses should to an s~ngle famdy
be ~n Employment Employment residences to NR-3
Center Area Th~s center w~th the
block should be exception of the
examined by Council housing along
Smith Street to
the north Th~s
change
require a
comprehensive
plan
I amendment
4 Properties on Bonnie Th~s area ~s wdh~nLeave the same as
Brae south of the the Urbanizing on the map
H~ckory Creek Area as defined
watershed Currently by the
zoned A, proposed comprehensive
zoning ~s NCR-4 and plan NCR-4 Is
RD-5 P&Z s~m~lar to
recommended th~s surrounding land
area be zoned to use patterns
Rural D~stnct due to
lack of road
connectivity Property
owners request to be
taken to higher density
(NCR-4)
5 512 Current zoning ~s MF-1Staff Agree w~th staff,
Proposed zoning Is recommends thts change th~s area to
NRMU-12 Property change NRMU
owner would I~ke th~s
property to be
reclassified as NRMU
6 528 Current building was The proposed NR-
used as daycare 3 zoning
Current zoning IS MF-1 designation ~s a
Area was classified as reflection of the
NR-3 by previous surrounding
council Owners are residential
Iook~ng for h~gher neighborhood
~ntens~ty zomng (CM- Professional
G) to allow office use offices are not
appropnate in a
ex~shng
neighborhood
land use area
Staff does not
recommend any
changes to the
zoning
7 543 Carruthers Oii Staff
Company on Ft Worth recommends no
Dnve would be in non-change Special
compliance w~th the exception
CM-G classification provisions
Current zoning ~s LI allow ex~st~ng uses
Asking for h~gher to continue
d~stnct Would be
covered by special
exception clause
-2-
578 ~herman Dnve Proposed zoning Leave the same
groperty behind P~ggly is appropriate and modify L(11)
Wiggly Currently due to adjacent
zoned SF-7 Proposed residential uses
zoning is NR-3 Asking
for NRMU from NR-3
585 Property currently Proposed zoning Leave the same as
zoned MF-l,changed ~s appropriate on the map
to NR-3 by council due to adJacent
request w~th Houston residential uses
Place Neighborhood
Requests h~gher
density zoning
classification
135 Owner requests Staff Leave the same as
Community M~xed Use recommends no on the map
Center and change
Neighborhood Center Recommends
on approximately 250 apphcant
acres Current zoning following
~s A Proposed zoning ~s rezon~ng
EC-I and NCR-2 procedures to
Would require a facilitate
comprehensive plan neighborhood
amendment ~nvolvement and
allow for an ~n
depth analysis
None Counctl has approved Staff Change th~s area to
recent rezon~ngs ~n th~s recommends EC-I
area Transition area rewslng the
from industrial to comprehensive
Residential )lan to allow
employment
center along US
380 and Oeeshng
591 Expansion of Staff Leave this area the
businesses along recommends no same as on the
Woodrow Lane back change map
into neighborhood Proposed zoning
Ex~shng zoning ~s SF-7 is appropriate
Proposed zoning ~s NR- due to adjacent
3 Would require a residential uses
comprehensive plan
amendment
13 641 Current zoning ~s MF-1 Proposed zoning Leave th~s area the
Previous Council ~s appropriate same as on the
recommended th~s due to adjacent map
area be zoned to NR- residential uses
3 DAHC requests th~s
property be rezoned
back to comparable
district to MF-1
14 644 Request for block of Proposed zoning Leave the same as
Pierce, Prairie, is appropnate on the map
Highland be rezoned due to adjacent
from DR-1 to DR-2 residential uses
Current zoning ~s 2F
Proposed zontng ~s DR-
1
15 None P&Z requests Council Staff Leave the same as
to examine the land recommends no on the map
uses and compaflb~hty change
~ssues for this area
Area is located west of
Hinkle Dnve, opposite
of Good Samantan
16 None P&Z requests Council Staff Change th~s area to
to examine the land recommends this NCR-4
uses and compatibility area be revised
issues for th~s area to NCR-2
Area ~s along 377 north
of H~lls of Argyle
Currently zoned A,
proposed zoning NCR-
12
17 None P&Z requests Councd Staff Leave the same as
to examine the land recommends a on the map
uses and compaflb~hty small area plan
~ssues for th~s area be considered for
Area along Elm and th~s area
Locust north of
University
18 384 Property owner of Staff Staff to find way to
Center Point Mobile recommends provide SUP for
Home Community maintaining northern half of
requests from EC-C to employment property, then
NCR-6 Currently center zoning revert area fo EC-C
zoned LI with a SUP Special
exception and
mobile home SUP
addresses existing
use Residential
zoning is not
appropriate for
this area
19 532 Skylab requires Staff Change this area to
~ndustrlal zoning in a recommends IC-E
Neighborhood Center continuance of
area Currently zoned IC-E zoning for
LI, proposed IC-E adjacent
industaally used
land
20 ,None Ft Worth Dnve, Tractor Staff Change this area to
Dealer requests recommends th~s CM-E
changing zoning from change
CM-G to CM-E
21 128 Currently zoned ii Staff Leave the same as
Requests area from lC- recommends th~s on the map
E to IC-G change
22 166 Acme Bnck requires Staff Leave the same as
extending the IC-G recommends th~s on the map
area to clay pit area change
23 374 West side of Ft Worth Staff Leave the same as
Drive from a mixture of recommends this on the map
Employment, change
Industnal, Community
M~xed Use to
Employment and
Industnal Centers
24 None East s~de of Ft Worth Staff Leave the same as
Drive requests from recommends th~s on the map
Community M~xed Use change
to Employment
Center
-5-
AGENDA INFORMATION SHEET
AGENDA DATE' December 18, 2001
DEPARTMENT. L~brary System
ACM: Kathy DuBose, F~scal and Mumc~pal Serv~ces'~
SUBJECT
Consider adoption of an ordinance authorizing the Mayor to enter ~nto an Interlocal Cooperation
Agreement w~th Denton County for hbrary serwces, and prowd~ng an effective date
BACKGROUND
Interlocal agreements between the C~ty of Denton and the County of Denton for hbrary services
have been ~n effect since FY 1985-86 Under the auspmes of each agreement, the Denton Pubhc
L~brary System agrees to prowde a full array of hbrary services, free of charge, to all residents of
Denton County
The Denton Pubhc L~brary System will serve approximately 22,871 bbrary users who hve
outside the Denton c~ty hunts th~s contractual year (FY 2001-2002) These Denton County
residents wall d~rectly benefit from th~s Interlocal Cooperation Agreement as they receive the
same library privileges as do c~ty of Denton residents
PRIOR ACTION/REVIEW (Council~ Boards~ Commission)
The Denton L~brary Board unanimously approved the Interlocal Cooperation Agreement with
Denton County at ~ts December 6, 2001 board meetmg
FISCAL INFORMATION
After ~mtmlly asking the C~ty of Denton to develop an eqmtablc funding allocation of $3 26 per
capita, the County Commissioners dec~ded to retam ~ts current funding per capita funding
allocat~on of $1 25 per cap~ta The total Denton Pubhc L~brary System allocatmn of $142,309 m
based upon North Central Texas Councd of Governments (NCTCOG) populatmn figures and
includes $10,000 ~n matchmg funds The allocation total ~s payable m equal quarterly
installments
EXHIBITS
1 Ordinance
2 Interloeal Cooperation Agreement
Respectfully submitted
Eva Poole
D~rector of Ltbranes
ORDINANCE NO
AN ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO AN INTERLOCAL
COOPERATION AGREEMENT WITH DENTON COUNTY FOR LIBRARY SERVICES,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, both the City of Denton and Denton County are political subdivisions of the
State of Texas that are authorized to enter into lnterlocal contracts under TEX GOV'T CODE,
ch 791 and TEX LOCAL GOV'T CODE, ch 323, and
WHEREAS, the City Council deems it in the pubbc interest to enter into this lnterlocal
contract with Denton County to provide library services for Denton County, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS
SECTION 1 That the Mayor, or m her absence, the Mayor Pro Tern, ~s authorized to
execute an Interlocal Cooperation Agreement for Library Services w~th Denton County
substantially m the form of the contract which is attached hereto and made a part of this
ordinance for all purposes
SECTION 2 That this ordanance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the day of ,2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
F \shared~dept\LGL\Our Documents\Ordmances\O l\County Library Agreement doc
3
STATE OF TEXAS,
COUNTY OF DENTON
INTERLOCAL COOPERATION AGREEMENT
FOR LIBRARY SERVICES
THIS AGREEMENT is made and entered mnto by and between
Denton County, a political subdlvmslon of Texas, hereinafter
referred to as "COUNTY," and the Cmty of Denton, a munlczpalmty
of Denton County, Texas, heremnafter referred to as
"MUNICIPALITY "
WHEREAS, COUNTY is a duly organized political subdzvlslon of
the State of Texas engaged mn the admlnlstrat ion of COUITrY
government and related services for the benefit of the citizens
of Denton County, and
WHEREAS, the Cmty of Denton ms a duly organized MUNICIPALITY
of Denton County, Texas engaged mn the provmszon of lzbrary
service and related services for the benefmt of the citizens of
M-u-NI CI PAL ITY, and
WHEREAS, both MI/NICIPALITY and COUNTY are legally authorized
to perform mndzvldually the functmons or services set forth
thms Contract in full compliance w~th V T C A , Local Government
Code § 791 011(e)(2), and
WHEREAS, COLINTY has requested and MUNICIPALITY has agreed to
provzde library services for all resmdents of Denton County, and
WHEREAS, COUNTY and M-gNICIPALITY mutually desire to be
subject to the provisions of V T C A , Government Code Chapter
4
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 200t-2002
CITY OF DENTON
791, the Interlocal Cooperatzon Act, and V T C A , Local
Government Code Chapter 323, COUNTY Llbrarmes
NOW, THEREFORE, COITNTY and MUNICIPALITY, for the mutual
conslderatzon hereznafter stated, agree and understand as
follows
I
The term of this agreement shall be for the permod from
October 1, 2001 through September 30, 2002
II
For the purposes and consIderation herezn stated and
contemplated, MUlqICIPALITY shall provide library services for the
residents of COD-NTY without regard to race, religion, color, age,
disabilIty and/or national ormgln Upon proper proof by
· ndlvldual(s) of residence in Denton County, Texas, such
zndzvldual(s) shall be entitled to be issued, at no cost, a
library card to be used in connection with said library services
MUNICIPALITY shall develop and mazntamn through the Library
one or more of the followzng programs of service
Educatzonal and reading incentive programs and
materials for youth
Functional literacy materials and/or tutoring programs
for adults
Job tramnlng/career development programs and/or
materzals for all ages
Outreach servmces to ellmznate barrzers to lzbrary
services
Educational programs designed to enhance quality of
lzfe for adults
5
INTERLOCAL COOPERATION AGREEMENT 2
LIBRARY SERVICES 200'1-2002
CITY OF DENTON
III
COUNTY designates the County Judge to act on behalf of
COUNTY and serve as liaison officer for COUNTY with and between
~OUNTY and MUNICIPALITY The County Judge or his designated
substitute shall insure the performance of all duties and
obligations of COUNTY herein stated and shall devote sufficient
time and attention to the execution of said duties on behalf of
COUNTY in full compliance with the terms and conditions of this
agreement, and shall provlde immediate and direct supervision of
COUNTY's employees, agents, contractors, sub-contractors, and/or
laborers, if any, in the furtherance of the purposes, terms and
conditions of this agreement for the mutual benefit of COUNTY and
MUNICIPALITY
IV
MUNICIPALITY shall designate £¥a Po0]e to act on
~ehalf of MUNICIPALITY and to serve as liaison officer of
MUNICIPALITY with and between MI/NICIPALITY and COUNTY to insure
the performance of all duties and obligations of MUNICIPALITY as
herein stated and shall devote sufficient time and attention to
the execution of said duties on behalf of MUNICIPALITY in full
compliance with the terms and conditions of this agreement, and,
shall provide management of MUNICIPALITY's employees, agents,
contractors, sub-contractors, and/or laborers, if any, in the
furtherance of the purposes, terms and conditions of this
agreement for the mutual benefit of MUNICIPALITY and COUNTY
MUNICIPALITY shall provide to COUNTY a copy of the annual
report submitted to the Texas State Library and shall respond to
INTERLOCALCOOPERATIONAGREEMENT 6 3
LIBRARYSERVICE$20012002
CI~OFDENTON
COUNTY's annual questionnaire as documentation of expenditures
and provision of service
V
The M-u-NICIPALITY shall be solely responsible for all
techniques, sequences, procedures, and means and for the
coordination of all work performed under the terms and conditions
of this agreement, shall Insure, dedicate and devote the full
time and attention of those employees necessary for the proper
execution and completion of the duties and oblIgatIons of the
MUNICIPALITY stated in thms agreement and give all attention
necessary for such proper supervision and direction
VI
The MUNICIPALITY agrees that its library department shall
assume the functmons of a COUNTY library and agrees to provide a
lIbrarian who holds or secures a COUNTY librarian's certzflcate
from the Texas State Library and Archmves Commission Local
Government Code, section 323 011(b)
VII
COUNTY agrees to and accepts full responsibility for the
acts, negligence and/or omissions of all COUNTY,s employees,
agents, sub-contractors, and/or contract laborers and for those
of all other persons doing work under a contract or agreement
with the COI/RTY
VIII
The ML~N~ ICIPALITY agrees and accepts full responsibility for
the acts, negligence, and/or omissions of all the MUNICIPALITY's
INTERLOCAL COOPERATION AGREEMENT 4
LIBRARY SERVICES 2001-2002
CITY OF DENTON 7
employees, agents, sub-contracts, and/or contract laborers, and
for those of all other persons doing work under a contract or
agreement with said MUNICIPALITY
IX
Thms agreement ms not mntended to extend the l~abll~ty of
~_he partmes beyond that provided by law Nemther MUNICIPALITY
nor COUNTY waives any lmmunmty or defense that would otherwmse be
available to zt agamnst claims by third partmes
X
MUNICIPALITY understands and agrees that the MUNICIPALITY,
its employees, servants, agents and representatives shall at no
time represent themselves to be employees, servants, agents
and/or representatives of COUNTY
XI
COUNTY understands and agrees that COUNTY, mrs employees,
servants, agents and representatives shall at no time represent
hemselves to be employees, servants, agents, and/or
representatIves of MUNICIPALITY
XII
The address of County is
County Judge, Denton County
110 West Hickory
Denton, Texas 76201
Telephone 940-349-2820
The address of Munmczpallty ms
Cmty of Denton
502 Oakland Street
Denton, Texas 76201
Attention Eva Poole
Telephone 940-349-8566
]NTERLOCAL COOPERATION AGREEMENT 8 5
BRARY EERVICES 200'1 2002
TY OF DENTON
XIII
For the full performance of the services above stated,
COUlqTY agrees to pay MUNICIPALITY fees as described herein
COUNTY shall pay MLrNICIPALIT¥ fees in the amount of $1 25 per
capita, for a total of ONE HUNDRED THIRTY-TWO THOUSAND THREE
HUNDRED NINE DOLLARS AND NO/100 ($132,309 00), based upon North
Central Texas Council of Governments population figures provided
to Denton County by the Library Advisory Board, payable ~n equal
quarterly installments to MUNICIPALITY commencing October 1, 2001
In addition, the COUNTY agrees to pay MUNICIPALITY an amount not
to exceed TEN THOUSAND DOLLARS AND NO/100THS ($10,000) in
matching funds upon the following conditions MUNICIPALITY shall
,Attempt to secure funding from sources other than Denton County
Upon receipt of additional funding, MD-NICIPALITY shall provide
proof of the receipt of such funds to the Denton County Auditor
on a quarterly basis Denton County shall match MUNICIPALITY's
additional funding in an amount not to exceed $10,000 00
Payment by COUNTY to MUNICIPALITY shall be made in accordance
with the normal and customary processes and business procedures
of COUNTY, and payment shall be satisfied from current revenues
of the COUNTY
XIV
This agreement may be terminated at any time, as stated in
Local Government Cod 323 011 ( c ), by either party giving six
(6) months advance written notice to the other party In the
event of such termination by either party, MUNICIPALITY shall be
compensated pro rata for all services performed to termination
INTERLOCAL COOPERATION AGREEMENT 6
LIBRARY SERVICES 200t 2002 9
CiTY OF DENTON
date, together wmth remmbursable expenses then due and as
authormzed by thms agreement In the event of such termmnatlon,
should MUNICIPALITY be overcompensated on a pro rata basms for
all servzces performed to termination date or be overcompensated
for reimbursable expenses as authorized by thms agreement, then
COUNTY shall be reimbursed pro rata for all such
overcompensatmon Acceptance of such reimbursement shall not
constmtute a waiver of any claim that may otherwise armse out of
thms agreement
XV
This agreement represents the entire and integrated
agreement between ~K/NICiPALIT¥ and COUNTY and supersedes all
prior negotmatmons, representations and/or agreements, either
wrmtten or oral This agreement may be amended only by wrmtten
instrument smgned by both MUNICIPALITY and COUNTY
XVI
The valmdmty of thms agreement and any of its terms or
provlsmons, as well as the rmghts and dutmes of the partmes
hereto, shall be governed by the laws of the State of Texas
Further, this agreement shall be performable and all compensatmon
payable mn Denton County, Texas
XVII
In the event that any portmon of thms agreement shall be
found to be contrary to law, bt ms the mntent of the partmes
hereto that the remaining portmons shall remamn valmd and mn full
force and effect to the extent possible
INTERLOCAL COOPERATION AGREEMENT 10 7
LIBRARY SERVICES 200'1 2002
CITY OF DENTON
XVIII
The undersigned offzcers and/or agents of the partzes hereto
are the properly authorzzed offzclals and have the necessary
authorzty to execute thzs agreement on behalf of the part~es
hereto and each party hereby certzfles to the other that any
necessary orders or resolutzons extending sa~d authorzty have
been duly passed and are now in full force and effect
INTERLOCAL COOPERATION AGREEMENT 1'1 8
LIBRARY SERVICES 200'1-2002
CITY OF DENTON
Executed on , 2001 zn dupllc&te
orzgznals zn Denton County, Texas by the authorized
representatzves
COUlqTY MUNICIPALITY
By By
Scott Armey Name
County Judge Title
Actzng on behalf of and by the
authority of the Commzssloners Resolutzon
Court of Denton County, Texas Dated
ATTEST ATTEST
By By
Denton County Clerk Czty Secretary
APPROVED AS TO FORM APPROVED AS TO FORM
AssIstant Dlstrzct Attorney Czty Attorney
APPROVED AS TO CONTENT
D~rector, L~brary Services
12
INTERLOCAL COOPERATION AGREEMENT 9
LIBRARY SERVICES 2001-2002
CITY OF DENTON
AGENDA INFORMATION SHEET
AGENDA DATE: December 18, 2001
DEPARTMENT: Fire ~
ACM: Jon Fortune, Public Safety and Transportation
SUBJECT
Consider approval of an lnterloeal ambulance agreement between the City of Denton and Denton
County for ambulance senncas, and declanng an effective date
BACKGROUND
The lnterlocal agreement for ambulance service between the City of Denton and Denton County
began in 1980 and provides for the continuation of emergency medical servme to Denton County
within the designated serwce area (see map) Each year a new agreement and ordinance ~s
approvedlby the Denton C~ty Councd for the next fiscal year approving the fee the county will
pay to the City of Danton for serrate The amount is based on a funding formula which consists
of a per capita amount, number of annual county ambulance runs, and size of the covered rural
area The population and mileage figures used are based on numbers obtmned from the North
Central Texas Council of Governments
PRIOR ACTIONfREVIEW (Council, Boards, Comm~ssions)
The anm~al contract was approved last year and prowded for a reimbursement fee of
$270,370~94 The new contract increases the County's reimbursement to the City of Denton to
$301,881 67
FISCAL INFORMATION
This xs a cost-recovery revenue effort
EXHIBIiS
Ordinance
Contract
Map of serwce area
Respectfully submitted
ORDINANCE NO
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AND
AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL AMBULANCE
AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FOR
AMBULANCE SERVICES, AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City Council of the City of Denton hereby approves an Agreement
between the City of Denton and Denton County for ambulance services, a copy of which is
attached hereto and incorporated by reference herein The Mayor, or in her absence, the Mayor
Pro Tem, is hereby authorized to execute this Agreement on behalf of the City
SECTION 2 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the day of ,2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
THE STATE OF TEXAS )
)
COUNTY OF DENTON )
INTER.LOCAL COOPERATION AGREEMENT
AMBULANCE SERVICE
THIS AGREEMENT is made and entered into this __ day of , 2001,
by and between Denton County, a pohtlcal subdlvaslon of the State of Texas, hereinafter referred
to as "COUNTY" and the City of Denton, a munaclpahty, located m Denton County, Texas,
hereinafter referred to as "AGENCY"
WHEREAS, COUNTY is a duly organized political subdivision of the State of Texas
engaged in the admamstrataon of COUNTY government and related services for the benefit of
the cmzens of Denton County, and
WHEREAS, AGENCY as a munlclpahty, engaged in the provasaon of ambulance service
and related servxces for the benefit of the citizens of Denton County, and
WHEREAS, AGENCY as an owner and operator of certmn ambulance vehicles and other
equipment desagned for the transportation of persons who are sick, mfirm, or injured and has in
its employ such trained personnel whose duties are related to the use of such vebaeles and
equipment, and
WHEREAS, COUNTY demres to obtain emergency medacal services rendered by
AGENCY, as more fully hereinafter described for the benefit of the resadents of Denton County,
Texas, and
WHEREAS, the provlsaon of emergency medical servaces is a governmental functaon
whach each governing body is authorized to perform mdavldually and serves the public health
and welfare and is of mutual concern to the contracting parties, and
WHEREAS, COUNTY and AGENCY mutually desire to be subject to the provaslons of
V T C A Government Code, Chapter 791, the Interlocal Cooperative Act, V T C A Health and
Safety Code, Section 774 003 and other applicable statutes and contracts pursuant thereto,
[NTFRLOCAL COOPERATION AGREEMENT 1
AMBULANCE SERVICES 01-02
NOW, THEREFORE, COUNTY and AGENCY for the mutual consideration hereinafter
stated, agree as follows
I
The effective date ofth~s agreement shall be the 1st day of October, 2001
II
The term of th~s agreement shall be for the period of October 1, 2001 to and through
September 30, 2002 Each party may termmate th~s agreement by g~vlng the other party written
notice of intent to terminate thirty (30) days after receipt of such notme
III
As used herem, the words and phrases hereinafter set forth shall have the meamngs as
follows
A "Emergency" shall mean any mrcumstance that calls for ~mmedmte actmn and in
whmh the element oft~me m transporting the sink, wounded or injured for medmal treatment ~s
essential to the health or hfe ora person or persons Whether the afore-mentioned mmmustances
~n fact ex~st ~s solely up to the chscret~on of the AGENCY For d~spatch purposes only,
"emergency" shall include, but not be hm~ted to
1 The representation by a person requesting ambulance service that an ~mmedlate need
exists for such servme for the purpose of transporting a person from any location to a place of
treatment and emergency medical treatment Is thereafter adm~mstered, and
2 The representation by a person requesting ambulance service that an immediate need
exists for such servme for the purpose of transpomng a person from any locatmn to the closest
medical facility,
B, "Rural area" means any area within the boundaries of Denton County, Texas, and
w~thout the corporate hm~ts of all incorporated cities, towns and villages w~th~n smd COUNTY
C "Urban area" means any area w~thln smd COUNTY, within the corporate hm~ts of an
~ncorporated AGENCY, town or village
~m~OCAL COOP~*~ON ^c~m~m 2
D "Emergency ambulance call" means a response to a request for ambulance service by
the personnel of AGENCY in a s~tuat~on involving an emergency (as such word ~s heremabove
defined) through the lnstmmentahty of an ambulance vehicle W~thln the meaning hereof, a
single call m~ght involve the transportatmn of more than one person at a tame
IV
A Sermces to be rendered hereunder by AGENCY are ambulance servmes normally
rendered by AGENCY under circumstances of emergency as heremabove defined to mtlzens of
COUNTY
B The Ambulance Department shall respond to the requests for ambulance services
made w~thm designated area of COUNTY, as set out ~n Exhibit "A", attached hereto and
~ncorporated by reference
C It is recogmzed that the officers and employees of AGENCY have duties and
respons~bthtles whmh include the rendenng of ambulance services and it shall be the
responslblhty and w~th~n the sole discretion of the officers and employees of AGENCY to
determine pnont~es in the dlspatclung and use of such equipment and personnel and the
judgment of any such officer or employee as to any such matter shall be the final determination
V
The COUNTY shall designate the County Judge to act on behalf of COUNTY and to
serve as "Lm~son Officer" between COUNTY and AGENCY The County Judge or h~s
designated substitute shall insure the performance of all dutaes and obhgat~ons of COUNTY
here~n stated, devote suffiment time and attention to the execution of smd duties on behalf of
COUNTY in full compliance with the terms and conditions of this agreement and provide
supervision of COUNTY's employees, agents, contractors, sub-contractors and/or laborers, if
any, m the furtherance of the purposes, terms and conditions of this agreement for the mutual
benefit of COUNTY and AGENCY
VI
INTERLOCAL COOPERATION AGREEMENT 3
AMBULANCE SERVICI]S 01 02
AGENCY shall ensure the performance of all duties and obhgatlons of AGENCY as
hereinafter stated, devote sufficient time and attention to the execution of said duties on behalf of
AGENCY ~n full comphance with the terms and conditions of th~s agreement and shall prowde
immediate and direct supervision of the AGENCY employees, agents, contractors, sub-
contractors and/or laborers, ~f any, In the furtherance of the purposes, terms and conditions of
this agreement for the mutual benefit of AGENCY and COUNTY
VII
For the services hereinabove stated, COUNTY agrees to pay to Provider a fee of
$301,881 67 based on a funding formula as follows First, the readiness sum is 5561 per capita
based on population, for a maximum of $63,427 47 Second, a sum of $385 80 per ambulance
run, for a maximum of $121,913 58 This sum IS based upon the number of runs made by
Provider m fiscal year 2001 Third, a fixed sum based on size of covered rural area, for a
maximum of $116,540 62 The first and third sums are based upon population and mileage
figures obtained fi.om the North Central Texas Council of Governments The second sum is
based upon the definition of an ambulance call for purposes of this agreement An ambulance
call is defined as treatment and transport of a patient to a medical facility Payment shall not be
allowed for instances in which a patient is not transported Consistent with the reporting
procedures described below, the Provider transporting the patient shall receive payment,
regardless of the service delivery area in which the call originated
Requests for payment shall be submitted on the standardized ambulance transportation
repomng form approved and provided by the COUNTY, accompanied by copies of patient
admissIon/regmtration forms as provided by a hospital or medical facility It shall be the
responsibility of the Provider to fully complete the forms and to provide complete and accurate
patient information Requests for payment shall be submitted timely, that is, within five (5) days
of the performance of service by the Provider Requests not timely submitted shall not be
considered for payment Requests for payment may be submitted by personal delivery, U S
mall, facsimile, or computer telephone link to the office of the Denton County Fire Marshal The
date of submasslon shall be the date the fully documented request is receaved in said office
The payments by COUNTY shall be made from current revenues avmlable to the
COUNTY and are m an amount that fairly compensates the AGENCY for the servaces provaded
VIII
COUNTY agrees to and accepts full responslbflaty for the acts, neglagence and/or
omissions of all COUNTY's officers, employees and agents
IX
AGENCY agrees to and accepts full responslballty for the acts, negligence and/or
omlssaom of all AGENCY's officers, employees and agents
X
In, the event of any default in any of the covenants herein contained, thas agreement may
be forfeated and terminated at either party's &scretaon if such default continues for a penod of ten
(10) days after notice to the other party in writing of such default and antentlon to declare this
agreement terminated Unless the default is cured as aforesaid, thas agreement shall termmate as
if that were the day originally fixed herean for the explrataon of the agreement
XI
Tkns agreement may be termanated at any tame by eather party gavmg sixty (60) days
advance horace to the other party In the event of such termanatlon by eather party, AGENCY
shall be compensated pro rata for all servaces performed to termanatlon date, together with
reimbursable expenses then due and as authorized by this agreement In the event of such
termanatmn, should AGENCY be overcompensated on a pro rate basis for all services performed
to termination date and/or be overcompensated reambursable expenses as authorized by thas
agreement, then COUNTY shall be reimbursed pro rata for all such overcompensatlon
Acceptance of such reimbursement shall not constatute a waiver of any claim that may otherwise
arise out of this agreement
XII
INTERZOCAL COOPERATION AGREEMENT 5
The fact that COUNTY and AGENCY accept certain respons~bihtles relating to the
rendenng of ambulance services under this agreement as a part of their responslbthty for
provt&ng protection for the pubhc health makes it imperative that the performance of these vital
services be recognized as a governmental function and that the doctnne of governmental
immunity shall be, and it is hereby, mvoked to the extent possible under the law Neither
AGENCY nor COUNTY waves nor shall be deemed hereby to wave any irmnumty or defense
that would otherwise be avalable to it against clams arising from the exercise of governmental
powers and functions
XIII
This agreement represents the entire and integrated agreement between AGENCY and
COUNTY and supersedes all prior negotiations, representations and/or agreements, either
written or oral This agreement may be amended only by written instrument signed by both
parties
XIV
Tlus agreement and any of its terms or provisions, as well as the nghts and duties of the
parties hereto, shall be governed by the laws of the State of Texas
XV
In the event that any porhon of this agreement shall be found to be contrary to law, it is
the mtent of the parties hereto that the remaning portions shall remain valid and in full force and
effect to the extent possible
XVI
The undersigned officer and/or agents of the parties hereto are the properly authorized
officials and have the necessary authority to execute th~s agreement on behalf of the parties
hereto and each party hereby certifies to the other that any necessary resolutions extended sad
authonty have been duly passed and are now in full force and effect
[NTERLOCAL COOPERATION AGREEMENT 6
AMBULANCE SERVICES 01 02
EXECUTED in duplicate onglnals, th~s the __ day of 2001
COUNTY AGENCY
Denton County, Texas C~ty of Denton
110 West Hickory 212 W Sycamore
Denton, Texas 76201 Denton, Texas 76201
By By
Scott Anney Name EULINE BROCK
Denton County Judge T~tle MAYOR
Acting on behalf of and by Acttng on behalf of and by the
the authority of Denton County authority of the C~ty of Denton
Commissioners Court of Denton, Texas
ATTEST: ATTEST
BY By
Cyntlua Mitchell Jennifer Walters, C~ty Secretary
Denton County Clerk
APPROVED AS TO CONTENT APPROVED AS TO CONTENT
Denton County Fire Marshall F~re Chief
APPROVED AS TO FORM APPROVES AS TO FORM
HERBERT L PROUTY,
CITY ATTORNEY
Assistant Dmtnct Attorney
INTERLOCAL COOPERATION AGREEMENT 7
AMBULANCE SI~RVICES 01 02
AGENDA INFORMATION SHEET
AGENDA DATE: December 18, 2001
DEPARTMENT: Fire
ACM. Jori Fortune, Public Safety and Transportation
SUBJECT
Consider approval of an ordinance authonzmg the city manager to enter into a lease agreement
between the City of Denton, Texas and Denton Area Teachers Credit Union, authorizing thc
expenditure of funds, and providing for an effective date
BACKGROUND
This lease agreement prowdes for office space rental to house Fire Admlmstratlon staff This
space has been leased from DATCU s~nce November 1998 The original contract provided for
lease of space only The present contract includes maintenance of the building and weekly
cleamng service as well as periodic carpet cleamng
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
Th~s contract was approved last year at a cost of $42,300 00 for twelve months The new
contract includes an increase to $48,300 00 for twelve months
FISCAL ~NFORMATION
This ~tem was mcluded m the FY01-02 budget
EXHIBITS
Ordinance
Contract
Respectfully submitted
//our doeumenls/ord~nances/01/lease DATCU for fire dept doc
ORDINANCE NO
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DENTON
AREA TEACHERS CREDIT UNION, AUTHORIZING THE EXPENDITURE OF
FUNDS, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, due to the needs of the Denton F~re Department for add,t~onal space
m order to carry our ~ts duties, and
WHEREAS, the City Council deems it in the pubhc interest to enter ~nto a lease
with Denton Area Teachers Credit Umon to obtain additional space, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the C~ty Manager is hereby authorized to enter into a lease
agreement between the City of Denton and Denton Area Teachers Credit Union, a copy
ofwhaeh ~s attached hereto and incorporated by reference herein
SECTION 2 That the Caty Manager ~s authorized expend funds as required by
the attached contract
SECTION 3 That th~s ordinance shall become effective lmmedmtely upon its
passage and approval
PASSED AND APPROVED this the day of
,2001
ELILINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
RENTAL CONTRACT
1 BETWEEN TENANT THE CITY OF DENTON (FIRE DEPARTMENT), herein
after referred to as tenant Telephone No
and OWNER (LANDLORD) Denton Area Teachers Creult Union
P O Box 827
D~nton, TX 76202 Ph 940/387-8585
(a) Persons to occupy premises Fire Chief and office staff
2 PROPERTY DESCRIPTION
BEING all that certain tract or parcel of land lying and
being s~tuated in the Willlam Loving Survey, Abstract 759, Denton
County, Texas, and being the same land conveyed by Mary Alice Stone
to W J Bushey, et ux, by Deed dated February 27, 1953, recorded
Volume 385, Page 406, Deed Records of sa~d County, and the same
land conveyed to Denton County Teachers Federal Credit Union by
Bruce Davis, et ux, as recorded in Volume 497, Page 35, Deed
Records of said County, and being more particularly described as
follows
BEGINNING at a found zron pln at the Southwest corner of said
Stone to Bushey Tract in the North line of Sycamore Street,
THENCE North 00o 03" 53' West, with the West line of sald
Stone to Bushey Tract, a distance of 149 58 feet to a found
iron pin at the Northwest corner of sa~d tract,
THENCE North 89o 36" 40' East, passing at 30 0 feet the West
line of Block Twenty-five (25) of the original townsite of the
City of Denton, Texas, and passing at 50 0 feet an iron pin at
the Northeast corner of said Stone to Bushey Tract, the same
oelng the Northwest corner of sald Credit Un~on Tract, and
continuing a total distance of 96 5 feet to the Northeast
corner of said Credit union Tract,
THENCE South 00o 28" 21' West, with tne East line of said
Credit Union Tract, a distance of 150 24 feet to corner on the
North line of Sycamore Street, ~aid corner being the Southeast
corner of said Crea!t ~nlon Tract,
THENCE West w!tn the North line of Sycdmore Street pa~sing at
4~ 0 feet the Soutnwebt %orner
BEGIXlNiNC drd
3 TERM OF CONTRACT The initial term of this agreement shall
comraence on December 1, 2001 and end on November 30, 2002,
constituting a twelve month period The contract will be
renewed automatically thereafter on a month to month basis
4 NOTICE At least 30 days written notice of intent to vacate
must be given to owners prior to move-out at the end of above
term or any renewal or extension period Failure to do so will
result in the forfeiture of deposit In the event of renewal
or extension of the rental contract, rent shall be paid
through the last day of the'month following the expiration of
the 30 day notice period, unless owner agrees otherwise in
writing
5 RENT Tenant will pay $4,025 00 per calendar month for
rental and shall be paid by mall or in person to Denton Area~,~u.u3
Teachers Credit Unlon,~-4{--'~f~°r~ent°n~ Texas,~7620~.
Such payments to be made on or before the first day o~ each ~,%~%~,~
month Rent paid after the let day of each month shall be
deemed late, and if rent is not paid by the third (3rd) day
of the month, Tenant agrees to pay a late charge of $300 00
addition to the rental payment, plus $50 00 per day until paid
in full. Should Tenant's rental payment become one (1) month
in arrears, unless other specific arrangements are made Tenant
shall be subject to eviction and upon written notice by Land-
lord, shall vacate premises by date specified in such notice
Partial payment of rent will not be accepted The entire
month's rent is due in its' entirety on let day of month
Tenant's right to possession is expressly contingent on the
prompt payment of rent, and the use of the premises by Tenant
is obtained only on the condition that rent is paid on time
Tenant agrees to pay a $25 O0 charge for each returned check
6 DAMAGE AND SECURITY DEPOSIT To insure that Tenant will
comply with all of the terms and conditions of this
agreement, Tenant has deposlted with Landlord on the
execution of this agreement the sum of $500 00, receipt
of which is hereby acknowledged by Landlord, to be
retained by Landlord during the term of this agreement
The security deposit shall be refunded to Tenant w~thln
thirty (30) days following the termination of th~s contract,
provided Tenant has complied w~th all of ~ts obligations
hereunder, less all costs and expenses incurred by Landlord in
restoring the premises to the same condition as when rented
(normal wear and tear excluded) plus any unpaid charges,
damages, or rentals due to Landlord Landlord shall furnish
a written description and itemized List of all deGuctlons,
provided Tenant furnishes Landlord a written copy of Tenant's
forwarding address, but neither list nor refun<~ snail De mace
unless Tenant has provided the wrttteP
and SUCh torwarding addre~ Should the
Ptge
herein authorized exceed the amount of the security deposit,
Tenant agrees to pay to Landlord the amount of such excess
7 CARE OF PREMISES Tenant agrees to take good care of the
premises and its fixtures and any furnishings, and to
suffer no waste and to make no alterations, additions or
improvements without the prior written consent of
Landlord No antennas, additional telephone outlets,
lock changes or addltlona~ locks shall be permitted
except by Landlord's permission
8 OWNER WILL NOT BE LIABLE for any damages or losses to
person or property caused by tenants or other persons
Owner shall not be liable for personal injury or damage
or loss of tenant's personal property from theft,
vandalism, fire, water, rain, hall, smoke, explosions,
acts of God, or other causes, unless the same is due to
the negligence of owner Owner stronaly recommends that
t~nant secure insurance to protect Itself against all of
the above occurrences.
9 REPAIRS BY OWNER In case of needed repairs to the
outside walls, roof, windows or foundation, heating and
air conditioning systems, existing l~ghtlng fixtures,
exlstlng plumbing and electrical systems, tenant shall
notify Landlord or its representative immediately and
Landlord shall act with due diligence in making repairs,
and rent shall not abate during such periods If the
premises suffers damage which causes the premises to be
unusable by Tenant for the purpose it was leased, then
during the repair period rent will be abated If repalrs
cannot be made wlthln 30 days Landlord or Tenant may
terminate this contract by written notice to other party
If it is so termlnated, rent will be prorated and the
balance refunded along with the deposit, less lawful
deductions
IT SHALL be the further responsibility of Owner to cause the
carpets to be cleaned twice a year and all windows to be
cleaned quarterly on the outside
10 REPAIRS BY TENANT Tenant shall maintain and keep in good
repair the entire premises, save and except the windows,
outside walls, roof and foundation, which Landlord shall
maintain Tenant will maintain and repair ail other fixtures
and structural items including but not limited to Doors,
inside walls, vinyl, bathrcom fixtures and anything not listed
as the responsibility of Cwner in Paragraph Nine ,9~ a~o,/e
b~RRENDER OF ThE PREMISES ~pon termination of tuz~ ~ont~act,
[en~nt covenants and agrees that it Will pu¢3m~tl/
[~ll/ %ur~ender possess~o~ of the ~eml e~t
voluntarily surrender and deliver to Landlord all of the
personal property belonging to Landlord It is agreed that
Owner shall have the option to show the premises, by appoint-
ment, during the final 15 days of Tenant's occupancy It is
further agreed that during the last THIRTY (30) days of this
agreement, Tenant shall compensate Owner in the amount of
SEVEN THOUSAND FOUR HUNDRED EIGHTY-SIX DOLLARS ($7,486 00) for
the replacement of carpet and shall pay the sum of ONE
THOUSAND THREE HUNDRED SIXTY, DOLLARS $(1,360 00) representing
the cost to be incurred by Owner for the cost of palntlng the
premises
12 TENANT AGREES TO REIMBURSE OWNER PROMPTLY for any loss, pro-
perty damage, or cost of repairs or service (including
plumbing trouble) caused by negligence or improper use by
tenant Tenant shall be responslble for damage from windows
or doors left open Such reimbursement is due when Owner's
representative makes demand Owner's failure or delay in
demanding damage reimbursements, late-payment charges,
returned check charges, or other sums due by Resident shall
not be deemed a waiver; and owner may demand same at any time,
Including move-out
13 RIGHT OF ENTRY Landlord shall have the right to enter upon
the Tenant's premises at all reasonable hours for the purpose
of inspecting said premises, and making necessary repairs
14 EXHIBIT "A" Attached is Exhibit "A" which represents
specific parking spaces that are a part of this lease and are
the ONLY parking spaces available for use by Tenant Landlord
shall maintain and repair parking area in the same manner as
it maintains the remainder of the parking lot
15 ENTIRE AGREEMENT This instrument in writing, termed a Rental
Contract, contains the entire agreement made by and between
the parties hereto No oral agreements have been entered into
in connection with the execution of this instrument, and none
of the terms, provisions or conditions contained herein shall
be changed or modified ~n any way except by an instrument in
wrltlng, signed by all of the parties hereto
Addztlonaz terms and conditions to th~s contract
That the payment in paragraph 11 for carpet and paint shall constitute
full payment for any repairs ne~m~m.ryunderterm~ mf ~h~ l~ ~d the~-
no other payment will be required hy Lessor for any annd~t~nn n~ ~h~
~eased premises at ~ mhd nf C.h~ l~a~e~.term ........
Th~s condxtxoD~oes not~parsede th¢ terms_~nd conJ!~
se~h- ~a~gra~h 12 ~ --
SIGNED th±s day of , 2001
OWNER (LANDLORD) TENANT
OWNER (LANDLORD) TENANT
~ ~2OVED AS TO FOR~vl
~Y ATTORNEY,
,¥Y OF DENTON, [EXAS
AGENDA INFORMATION SHEET
AGENDA DATE: December 18, 2001
DEPARTMENT' F~re ~
ACM Son Fortune, Pubhc Safety and Transportation
SUBJECT
Consider approval of an ordinance authorizing the City Manager to enter into a lease agreement
between the City of Denton, Texas and Sue Butt, anthonzmg the expenditure o£ funds, and
providing for an effective date
BACKGROUND
Tbas lease agreement provides for rental of dormitory and office space to house the Operations
staff at Fire Station 1 Thru space has been leased from Sue Burr since June 1999 when xt
became necessary to close the existing fire statxon at 217 West MeKanney due to the d~scovery of
stachybotrys mold m the bmldlng
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
This contract was approved last year at a cost of $34,800 00 ['or eighteen (18) months The new
contract is for a twelve-month period at a cost of $25,200 00
FISCAL INFORMATION
Thxs ~tem was included m the FY01-02 budget
EXHIBITS
Ordinance
Contract
Respectfully submitted
ORDINANCE NO
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE
AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND SUE BURT,
AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, due to environmental conditions at the Central F~re Station, there ~s a need
to provide temporary quarters for the fire personnel who were housed there, and
WHEREAS, the C~ty Council deems ~t ~n the pubhc interest to enter ~nto a lease w~th Sue
Burt for those temporary quarters, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the C~ty Manager ~s hereby authorized to enter into a lease agreement
between the City of Denton and Sue Burt, a copy of whmh IS attached hereto and incorporated by
reference herein
SECTION 2 That the City Manager is authorized expend funds as required by the
attached contract
SECTION 3 That this ordinance shall become effective ~mmedlately upon its passage
and approval
PASSED AND APPROVED flus the day of ., 2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
LEASE AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS
AND SUE BURT
Date December 1,2001 ("Effective Date")
Landlord Sue Burr
216 W Oak
Denton, TX 76201
Tenant City of Denton, Texas
215 E McK~nney
Denton, TX 76201
Premises
The real property and ~mprovements commonly known as 218 W Oak, Denton, Denton
County, Texas, except however, Landlord shall retain the full use and r~ghts of possession
to 2700 square feet of sa~d ~mprovements, more or less, being the south 53 5 feet of sa~d
~mprovements that face Oak Street
Base Rent (monthly)
Total rent shall be $25,200 and shall be due and payable ~n equal monthly ~nstallments of
$2,100 00 each, w~th the first ~nstallment due on December 1, 2001 and thereafter due and
payable on the 1st day of each and every calendar month of the lease term
Commencement Date December 1,2001
Term~nat, on Date November 30, 2002
Secur,ty Depos,t NONE
Use of Premises
Any use related to the actlwtles of the C~ty of Denton F~re Department as determined by the
F~re Chief of the C~ty of Denton F~re Department and subJect to the prior approval of
Landlord for any use of premises not d~rectly related to the Denton F~re Department
Amount of Liabdlty and Property Insurance
As determined by the F~re Chief of the C~ty of Denton F~re Department and subject to the
pnor approval of Landlord Landlord understands that Tenant ~s a self-Insured governmental
enbty and that upon adequate evidence of self ~nsurance, Landlord wdl accept self ~nsurance
instead of habd~ty insurance Landlord shall pay for fire and extended coverage insurance
on the property In the amount set forth ~n Paragraph C 4 below and maintain coverage
during the term of th~s lease
Terms and Defimtlons,
"Rent" means base rent due Landlord by Tenant
"Landlord" means Landlord and its agents, employees, ~nwtees, hcensees, or ws~tors
"Tenant" means Tenant and Its agents, employees, ~nwtees, I~censees, or wsltors
"Essential Services" means heating, venblatlng, a~r cond~bomng, water, and utd~ty
connections reasonably necessary for occupancy of the premises for the use stated above
LEASE CLAUSES AND COVENANTS
A Tenant agrees as follows.
1 To lease the premises for the entire term beginning on the commencement date and
ending on the termination date, unless the ~mprovements are parbally or totally damaged by
fire, water, or other s[mdar causes, ~n which case Tenant and Landlord may agree to
terminate the lease by written notme from each party subject to Paragraph E 5 below
2 To examine and accept the premises m their present condition "as ~s," the premises
being currently suitable for Tenant's ~ntended use
3 To obey all laws, ordinances, orders, and rules and regulations apphcable to the use,
condition, and occupancy of the premises, including the rules and regulations of the budding
adopted by Landlord
4 To pay monthly, ~n advance, on the first day of the month, the base rent to Landlord
at Landlord's address
5 To pay a late charge of 5 percent of any monthly rent not recewed by Landlord by the
tenth day of the month [n which the rent Is due
6 To pay for all uhl~ty serwces to the budding, ~t being expressly understood that there
are no separate ubhty meters for the port~on of the budding retmned by Landlord and the
leased premises to be used by Tenant Landlord shall not prowde any utd~ty service to
Tenant and shall not pay for any ubhty serwces to the Building
7 To repair and maintain the leased premises Landlord shall not be obligated to
repair, replace and / or maintain any part of the leased premises except as set forth ~n
Paragraph C 5 below Tenant further agrees to repair any damage to the premises d~rectly
resulting from the negligence or act~wt~es of Tenant
8 To secure Landlord's prior approval and consent of any ~ntended leasehold
~mprovements to the leased premises Tenant agrees to secure all the necessary permits
for any intended improvements to the property and further agrees to be solely responsible
for the payment of all expenses and costs associated w~th any such ~mprovements
9 To maintain pubhc hab~l~ty insurance or self ~nsurance for the leased premises and
the conduct of Tenant's bus~ness, as indicated ~n the Paragraph enbtled "Amount of L~ab~hty
and Property Insurance"
10 To dehver certificates of ~nsurance to Landlord when requested
11 To allow Landlord to enter the premises to ~nspect the premises and show the
premises to prospective purchasers or tenants
12 To vacate the premises on termination of th~s lease
Tenant agrees to refra,n from the following
1 To use the premises for any purpose other than that stated m the basic lease terms
and definitions
2 To (a) create a nuisance, (b) ~nterfere w~th any other tenant's normal bus~ness
operabons or Landlord's management of the building, (c) permit any waste, or (d) use the
premises ~n any way that ~s extra hazardous, would ,ncrease ~nsurance premiums, or would
void insurance on the building
3 To alter the premises without Landlord's prior approval and written consent
4 To allow a I~en to be placed on the premises
5 To assign th~s lease or sublease any port~on of the pramlses
6 To use any part of the premises for temporary or permanent parking of fire
department vehicles or personal vehicles of staff or personnel
Landlord agrees as follows
1 To lease to Tenant the premises for the entire term beginning on the commencement
date and ending on the termination date
2 To obey all laws, ordinances, orders, and rules and regulations apphcable to the use,
condition, and occupancy of the building
3 To provide normal utlhty service connections to the building, subject however, to
Paragraph A 6 above
4 'To ~nsure the budding against all risks of d~rect physical loss ~n an amount equal to
at least 90 percent of the full replacement cost of the building as of the date of the loss and
habd~ty, Tenant wdl have no claim to any proceeds of Landlord's ~nsurance pohcy
5 To maintain the foundation, the exterior walls and the roof of the leased premises
In good repair Landlord shall not be obhgated to repair, replace and / or maintain any part
of the leased premises damaged as a result of the neghgence or act~wt~es of Tenant
D Landlord agrees to refrain from the following
1 Interfere w~th Tenant's possession of the premises as long as Tenant ~s not ~n default
2 Unreasonably w~thhold consent to ~ntended leasehold ~mprovements by Tenant
E Landlord and Tenant agree to the following
1 Alterations Any physical add~bons or ~mprovements to the premises made by
Tenant w~ll become the property of Landlord Landlord may require that Tenant, at
termination of th~s lease and at Tenant's expense, remove any physical add~bons and
~mprovements. repair any alterations, and restore the premises to the cond~bon ex~st~ng at
the commencement date, normal wear and tear excepted
2 Abatement. Tenant's covenant to pay rent and Landlord's covenants are
independent of each other Except as otherwise prowded, Tenant shall not be enbtled to
abate rent for any reason
3 Release of Claims/Subrogation Landlord and Tenant release each other from any
claim, by subrogation or otherwise, for any damage to the premises, the budding, or
personal property w~th~n the budding, by reason of fire or the elements, regardless of cause,
including neghgence of Landlord or Tenant Th~s release apphes only to the extent that ~t
~s permitted by law, the damage is covered by ~nsurance proceeds, and the release does not
adversely affect any insurance coverage
4 Notice to Insurance Companme Landlord and Tenant will notify the ~ssu~ng
~nsurance companies of the release set forth in the preceding paragraph and will have the
insurance pohc~es endorsed, if necessary, to prevent ~nvahdat~on of the insurance coverage
5 Casualty/Total or Partial Destruction (a) If the premises are damaged by casualty
and can be restored w~thln ninety days, Landlord w~ll, at Its expense, restore the premises
to substantially the same condition as they existed before the casualty If Landlord fads to
complete restoration w~thln mnety days from the date of written notlficabon by Tenant to
Landlord of the casualty, Tenant may terminate h~s lease by written notice to Landlord (b)
If the premises cannot be restored w~thtn mnety days, Landlord has an option to restore or
not to restore the premises If Landlord chooses not to restore, th~s lease will terminate If
Landlord chooses to restore, ~t w~ll notify Tenant of the estimated hme to restore and give
Tenant an option to terminate th~s lease by nobfy~ng Landlord w~thln ten days If Tenant
does not terminate th~s lease, It shall continue and Landlord shall restore the premises as
provided in (a) above (c) To the extent the premises are uninhabitable after the casualty
and the damage was not caused by Tenant, the rent wdl be abated or adjusted as may be
fair and reasonable
6 Condemnat, onlSubstantlal or Partial Taking (a) If the premises cannot be used
for the purposes contemplated by th~s lease because of condemnation or purchase in heu
of condemnation, this lease w~ll terminate (b) If there ~s a condemnation or pumhase ~n I~eu
of condemnabon and th~s lease is not terminated, Landlord will, at Landlord's expense,
restore the premises, and the rent payable during the unexpired portion of the term will be
adJusted as may be fair and reasonable (c) Tenant w~ll have no claim to the condemnation
award or proceeds ~n heu of condemnation
7 Default by Landlord/Events Defaults by Landlord are (a) fa~hng to comply w~th any
prows~on of th~s lease within thirty days after wntten notice by Tenant or (b) fabling to prowde
essential services to Tenant w~th~n ten days after wntten notice
8 Default by Landlord/Tenant's Remedies Tenant's remedies for Landlord's default
are to (a) sue for damages, and (b) ~f Landlord does not prowde an essential service for
thirty days after default, terminate this lease
9 Default by Tenant/Events. Defaults by Tenant are (a) fa~lmg to pay bmely rent, (b)
abandoning or vacabng a substantial portion of the premises, or (c) fall~ng to comply w~th~n
ten days after written not~ce by Landlord, with any prows~on of this lease other than the
defaults set forth in (a) and (b) above
10 Default by Tenant/Landlord's Remedies Landlord's remedies for Tenant's default
are to (a) enter and take possession of the premises, after which Landlord may relet the
premises on behalf of Tenant and receive the rent d~rectly by reason of the relett~ng, and
Tenant agrees to reimburse Landlord for any expenditures made ~n order to relet, (b) enter
the premises and perform Tenant's obhgat~ons, or (c) terminate th~s lease by wntten nobce
and sue for damages Landlord may enter and take possession of the premises by self-
help, by picking or changing locks ~f necessary, and may lock out Tenant or any other
person who may be occupying the premises, until the default ~s cured, without being liable
for damages
11 Default/VValverlMitlgatlon. It is not a waiver of default ~f the nondefault~ng party fa~ls
to declare ~mmed~ately a default or delays ,n taking any acbon Pursuit of any remedies set
forth ~n th~s lease does not preclude pursuit of other remedies ~n this lease or provided by
law Landlord and Tenant have a duty to m~tlgate damages
12 Holdover If Tenant does not vacate the premises following termination of th~s lease,
Tenant shall be a tenant at will and shall vacate the premises on receipt of not~ce from
Landlord No holding over by Tenant, whether w~th or without the consent of Landlord, w~ll
extend the term
13 Alternative Dispute Resolution Landlord and Tenant shall submit ~n good faith to
mediation before filing a su~t for damages
14 Attorney's Fees If either party retains an attorney to enforce th~s lease, the
prevailing party ~s enbtled to recover reasonable attorney's fees
15 Venue Venue ~s ~n the county m which the premises are located
16 Entire Agreement Th~s lease ~s the entire agreement of the parties, and there are
no oral representations, warranbes, agreements, or promises perta~mng to th~s lease or to
the expressly menboned exh~bRs and .ders not ~ncorporated ~n w.tmg ~n this lease
17 Amendment of Lease Thru lease may be amended only by an ~nstrument ~n writing
s~gned by Landlord and Tenant
18 Limitation of Warranties There are no ~mphed warrant~es of merchantab~hty, of
fitness for a particular purpose, or of any other k~nd arising out of th~s lease, and there are
no warranties that extend beyond those expressly stated ~n th~s lease
19 Not~ces Any nobce required by th~s lease shall be deemed to be delivered (whether
or not actually received) when depomted w~th the Un~ted States Postal Service, postage
prepmd, certified mad, return receipt requested, and addressed to Landlord or Tenant at
their addresses
20 Abandoned Property Landlord may retain, destroy, or d~spose of any property left
on the premises at the end of the term
CITY OF DENTON, TEXAS
~UE-B-L.i~'T~Lafi(~I'0rd Date BY MICHAEL A CONDUFF, City Manager Date
JENNIFER WALTERS, C~ty Secretary Date
APPROVED AS TO LEGAL FORM.
HI~RBERT L PROUTY, C~tyAttorney Date
AGENDA INFORMATION SHEET
AGENDA DATE. December 18, 2001
DEPARTMENT. F~nance/Treasury
ACM. Kathy DuBose, Fiscal and Municipal Servmes ~
SUBJECT
Consider approval of a resolution rewew~ng and adopting thc Investment Pohcy for funds
for the C~ty of Denton, designating an ~nvastment officer, prowd~ng a sav~ngs and
repealing clause, and provld~ng an effective date
BACKGROUND
In accordance w~th the Pubhc Funds Investment Act, the City of Denton Investment
Pohcy must be rewewed and approved by the C~ty Counml at least annually The Pohcy
estabhshes investment parameters and gmdehnes for the investment program as well as
the strategies for investment It also designates the authorized investment officer
rcsponsthle for the dally investment activity by the C~ty
Staff ls recommending one change to thc Investment Pohcy Page 10, section VII D 3,
"Statable and Authorized Investment Sectmnes" This change would modify the
hm~tataon on U S Treasury and Agency callable securities from 25% to 35% of the total
investment balance A callable security is a bond issue ~n which all or part of ats
outstanding pnncapal amount may be redeemed before maturity by the assuer under
specified cond~tlons Generally, a security ~s called so that underwriters can mature a
bond at a hagh coupon rate and reassue the bond at a lower coupon rate, thus increasing
thear margin of profit The recommended change does not interfere w~th the safety,
hqmchty, marketabthty, and chversfficat~on of the portfoho In adthtlon, staff has
demonstrated the City's capabthty to sustmn a 35% level Not only has the portfoho
experienced thru level, the Reserve Fund level allows for the longest maturity date m a
callable security as long as at meets the estabhshed wmghted average maturity of five
years There are no seeuntles an the Caty's portfoho that exceed five years
RECOMMENDATION
Staff recommends that the C~ty Council approve Investment Pohcy 408 04 The Pohcy
contmues to comply w~th the Pubhc Funds Investment Act
PRIOR ACTION/REVIEW (Council. Boards. Commission)
Investment Policy 408 04 was presented to the Investment Committee on Monday,
November 12, 2001 All Committee members voted for approval and recommended the
Policy, be submitted to the C~ty Council for rewcw (5-0)
Respectfully submitted
Dmna G Ortlz
D~rector ofF,seal Operataons
2
RESOLUTION NO
A RESOLUTION REVIEWiNG AND ADOPTiNG THE INVESTMENT POLICY FOR
FUNDS FOR THE CITY OF DENTON, DESIGNATING AN INVESTMENT OFFICER,
PROVIDING A SAVINGS AND A REPEALING CLAUSE, AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the C~ty Council passed Resolutmn No 96-061 on October 15, 1996, which
adopted an Investment Pohcy for Funds for the C~ty, ~n comphance w~th the Pubhc Funds
Investment Act, 74th Leg, ch 402, 1995 Tex Sess Law Serv 2958 (Vernon) (TEX GOV'T
CODE Ann Ch 2256), and
WHEREAS, by Resolution No 97-026, passed by the C~ty Council on June 10, 1997, the
C~ty's Investment Pohcy was amended, and
WHEREAS, by Resolutmn No 97-077, passed by the C~ty Councd on December 16,
1997, the C~ty's Investment Pohcy was amended, and
WHEREAS, by Resolution No 98-067, passed by the C~ty Counml on December 15,
1998, the C~ty's Investment Pohcy was rewewed and adopted, and
WHEREAS, by Resolution No 99-047, passed by the C~ty Counc~l on September 21,
1999, the C~ty's Investment Pohcy was amended, and
WHEREAS, by Resolution No 2000-065, passed by the C,ty Council on December 19,
2000, the C~ty's Investment Pohcy was amended, and
WHEREAS, the C~ty Councd desires to rewew the Investment Pohcy for comphance to
the Pubhc Funds Investment Act, TEX GOV'T CODE ch 2256, by the 76th Legislature, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
SECTION 1 That the C,ty Counml has rewewed the attached C,ty of Denton Investment
Pohcy, whmh contains the ,nvestment pohcles and strategies and hereby adopts the attached
Investment Pohcy w~th the recommended changes to the pohcy from the one adopted on
December 19, 2000
SECTION 2 That the Assistant Ctty Manager of F~scal and Munm~pal Services ~s
hereby demgnated as the chief financml officer for the C~ty and the D~rector of F~scal Operations
~s hereby designated as the C~ty's ~nvestment officer to perform the functmns reqmred of
her/inm The fifianmal officer ~s hereby authorized to perform the functmns reqmred of her/h~m
under the Investment Pohcy and ~n accordance w~th TEX GOV'T CODE ch 2256
SECTION 3 That all ordinances or parts of ordinances in force when the provisions of
this resolution became effective which are inconsistent or m conflict w~th the terms or provisions
contmned in ti'ns resolution are hereby repealed to the extent of any such conflict only The non-
conflicting sections, sentences, paragraphs, and phrases shall remmn in full force and effect
SECTION 4 That save and except as amended hereby, all the prowsmns, sections,
subsections, paragraphs, sentences, clauses, and phrases of Resolution No 96-061, Resolutmn
No 97-026, Resolution No 97-077, Resolution No 98-067, Resolution No 99-047 and
Resolution No 2000-065 shall remaan m full force and effect
SECTION 5 That tNs resolution shall become effective ~mmedlately upon ~ts passage
and approval
PASSED AND APPROVED this the __ day of ., 2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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CITY OF DENTON Page loft4
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
SECTION FINANCE POLICIES REFERENCE NUMBER
403 06
INITIAL EFFECTIVE DATE
SUBJECT INVESTMENTS 02/17/87
LAST REVISION DATE
TITLE INVESTMENT POLICY 06/97 9/99
11/97 12/00
I PURPOSE
Thts pohcy shall provtde the gmdelmes by whmh the Ctty of Denton "Ctty" wall maratatn the
mmtmum amount of cash mtts bank accounts to meet daffy needs, and to provtde protection for tts
pnn¢~pal and hqmdtty whtle receiving the highest yteld possible from tnvestmg all temporary
excess cash This pohey serves to satisfy the statutory reqmrements of defining and adoptmg a
formal ravestment policy The pohcy and strategy shall be revtewed annually by the Investment
Commfltee and Cfly Counctl who will formally approve any modifications This tnvestment
pohcy aa approved, ts m comphance w~th the provlstons of the Pubhc Funds Investment Act of
Tex Gov't Code Ann Chapter 2256, hereinafter referred to as the "Act", as amended and effecttve
September 1, 1997
II SCOPE
A Th~s Investment Pohcy apphes to the mvestment actimttes of the Ctty of Denton, Texas The
specffic funds ctted hereafter zn Sectlun IIB, shall be excluded from thts Investment Policy
JAil financtal assets of all funds, including the General Fund and any other accounts of the
C~ty not specifically excluded tn these pohcy gmdehnes are mcluded These funds are
accounted for m the City's Comprehenstve Annual Fmanmal Report (CAFR)] These
funds, as well as funds that may be created from ttme-to-ttme, shall be admmtstered tn
accordance wtth the provts~ons of these pohcies All funds will be pooled for mvestment
purposes The strategy developed for th~s pooled fund group wtll address the varying needs,
goals, and objectives of each fund
B Thts pohcy shall not govern funds, whmh are managed under separate investment programs
in accordance wtth Section 2256 004 of the Act Such funds currently mclude, Employees'
Retirement Fund of the Cfly of Denton, the Ftremen's and Pohcemen's Penston Funds of the
C~ty of Denton, other funds estabhshed by the City for deferred employee compensatton,
revenue bond reserve funds, and certain private donattons The Ctty shall and will mamtatn
responsibility for these funds to the extent reqmred by Federal and State Law, the Ctty
Charter, and donor sttpulattons
III INVESTMENT OBJECTIVE & STRATEGY
It ts the pohcy of the "Ctty" that, glvmg due regard to the safety and rtsk of investment, all
available funds shall be mvested m conformance wtth State and Federal Regulat~uns, apphcable
Bond Resolutton reqmrements, adopted Investment Pohcy and adopted Investment Strategy
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In accordance with the Pubbc Funds Investment Act, the following pnormzed objectives (in order
of importance m accordance with Section 2256 005(d) of the Act), apply for each of the City's
investment strateg~es
A Suttabdtty - Understanding the sultabthty of the investment to the financml requirements of
the City Any investment eligible in the Investment Policy is suitable for all City funds
B Safety - Preservation and safety of prlnmpal All investments will be of high quality
securities with no perceived default risk Market price fluctuations will however occur, by
managing the weighted average days to maturity for each fund type as specified
C £lqmdtty - To enable the City to meet operating requirements that m~ght be reasonably
anticipated, the C~ty's investment portfoho will remain sufficiently hquld Llqurdlty shall be
achieved by matching investment maturities w~th forecasted cash flow reqmrements and by
investing in securmes w~th aetlve secondary markets Short-term investment pools and
money market mutual funds provide daily bqmdity and may be utilized as a eompetmve
yield alternative to fixed maturity investments
D Marketabthty - Securities with active and efficient secondary markets are necessary in the
event of an unanticipated cash mqmrement H~stoncal market "spreads" between the bid
and offer prices of a particular security type of less than a quarter of a percentage point shall
define an efficient secondary market
E Diversification - Investment maturities shall be staggered throughout the budget cycle to
prowde cash flow based on the ant~mpated needs of the City D~verslfy~ng the appropriate
maturity structure will reduce market cycle risk
F YleM- Attaining a competmve market yield for comparable security-types and portfolio
restrictions are the desired objective The y~eld of an equally weighted, rolhng six-month
treasury bill portfolio shall be the mimmum yield objective or "benchmark" A secondary
objectave will be to obtain a y~eld equal to or ~n excess of a local government ~nvestment
pool, money market mutual fund or average Federal Reserve d~scount rate
The first measure of success m this area will be the attainment of enough income to offset
inflationary increases Even though steps wall be taken to obtain this goal, the City's staff
shall constantly be cognizant of the standard of care and the investment objectives pursuant
to the proxamons of the amended Act, Section 2256 006(a)
The Director of Fiscal Operations shall avoid any transactions that might impair public
confidence m the C~ty's ability to govern effectively The governing body recogmzes that m
d~versffy~ng the portfoho, occasional measured losses due to market volatthty are mewtable,
and must be considered w~thin the context of the overall portfoho's investment return,
provided that adequate d~verslficat~on has been implemented The prudence of the
investment demslon shall be measured in accordance w~th the tests set forth m Section
2256 006(b) of the Act
IV INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS
Each major fund type has varying cash flow requirements and liquidity needs Therefore specific
strategies shall be implemented considering the fund's unique requirements and the following shall
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be considered separate investment strategies for each of the funds mentaoned below The City's
funds shall be analyzed and invested according to the following major fund types
A Operattng Funds - Investment strategies for operating funds and commingled pools
containing operating funds have as their primary objective to assure that anticipated cash
flows are matched w~th adequate investment hqmd~ty The secondary objective is to
structure a portfolio, which will mlmmlze volatility during economic cycles This may be
accomplished by purchasing high quality, short-term securities, whmh will compliment each
other m a laddered maturity structure A dollar weighted average maturity of 365 days or
less will be maintained and calculated by using the stated final maturity date of each
seourlty
B Debt Servtce Funds - Investment strategies for debt service funds shall have as the primary
objective the assurance of investment hqmdity adequate to cover the debt serwce obhgat~on
on the required payment date Securities purchased shall not have a stated final maturity
date, which exceeds the debt service payment date A dollar weighted average maturity of
550 days or less will be maintained and calculated by using the stated final maturity date of
each security
C Debt Service Reserve Funds - Investment strategies for debt servme reserve emergency and
cuntmgency funds shall have as the primary objective the ability to generate a dependable
revenue stream to the appropriate fund from securities with a low degree of volatility
Securtt~es should be of high quality and, except as may be required by the bond ordinance
specific to an individual issue, of short to ~ntermedmte-term maturities with stated final
maturities not exceeding five (5) years Volatthty shall be further controlled through the
purchase of seeunUes carrying the highest coupon available, within the desired maturity and
quality range, without paying a premium, if at all possible Such securities will tend to hold
their value during economic cycles
D Constructton and Spectal Purpose Funds - Investment strategies for construction projects or
special purpose fund portfolios will have as their primary objective to assure that anticipated
cash flows are matched with adequate investment hqmdity These portfohos should include
at least 10% in highly liquid securmes to allow for flexibility and unantlmpated project
outlays The stated final maturity dates of securities held should not exceed the estimated
project completion date A dollar weighted average maturity of 365 days or less will be
maintained and calculated by using the stated final maturity of each security
E Market prices for all public fund investments will be obtained and monitored through the use
of Interactive Data Inc, an on-hne data service or a sxmflar quahfied successor agency
V INVESTMENT COMMITTEE
Members - There is hereby created an Investment Committee consmtmg of the Ctty Manager,
Assistant City Manager of Finance, Director of Fiscal Operations, Mayor, and one member of the
C~ty Council
Scope - The Investment Committee shall meet at least quarterly to determine general strategies and
to monitor results Included ~n its deliberations will be such topics as economm outlook, portfolio
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dlver~Wtcatton, maturity structure, potential risk to the City's funds, authorized brokers and dealers,
and the target rate of return on the investment porffoho
Procedures - The Investment Committee shall provide msnutes of its meetings Any two members
of the Investment Committee may request a special meeting, and four members shall eonsUtute a
quorum The Investment Committee shall establish ~ts own rules of procedures
VI RESPONSIBILITY AND STANDARD OF CARE
A Delegatton& Training - Thc management responsibility for the investment program is
hereby delegated to the Assistant City Manager of Finance, who shall estabhsh written
procedures for the operation of the investment program, consistent with this investment
policy Such procedures shall include exphmt delegation of authonW to the individual(s)
responsible for investment transactions The primary m&vidual who shall be involved m
investment activities will be the Director of Fiscal Operations The Cash & Debt
Administrator will have a support role The Assistant City Manager of Finance and Director
of Fiscal Operations are designated as investment officers, pursuant to section 2256 005
subsection f of the Act Accordingly, the investment officers, who shall be thc chief
finanmal officer and the investment officer of the City for the purposes of Section 2256 008
of the Act, shall attend at least one training session relating to their responslbfl~ty under the
Act within 12 months after assuming duties These sessions and additional ~nvestment
training sessions must be completed no less often than once every two fiscal years
commencing September 1, 1997 and these financial officers shall receive not less than 10
hours of instruction relating to investment respons~bflmes The training must include
education m investment controls, security risks, strategy risks, market risks, and compliance
with the Public Funds Investment Act The ~nvestment trmnmg session shall be provided by
an independent source approved by the investment committee For purposes of this pohcy,
an "independent source" from which investment training shall be obtained shall include a
professional organization, an institute of higher learning or any other sponsor other than a
Business Organization w~th whom the City of Denton may engage in an investment
transaction Thus, these independent sources will be training sessions sponsored by
Government Treasurers Organization of Texas (GTOT), University of North Texas (UNT),
Government Finance Officers Association of Texas (GFOAT) No persons may engage in
investment transactions except as provided under the terms of tMs pohcy and the procedures
estabhshed by the Assastant City Manager of Finance The Assistant City Manager of
Finance shall be responsible for all transactions undertaken, and shall estabhsh a system of
control to regulate the actixntles of the Director of Fiscal Operations The controls shall
include a quarterly process of mdependent review by an individual or firm designated by the
Assistant City Manager of Finance, and an annual review by an external auditor The
reviews will provide ~ntemal control by assunng compliance with policies and procedures
The Assistant City Manager of Finance, Director of Fiscal Operations, Mayor, City Council,
City Manager and other Finance employees shall be personally mdemmfied in the event of
investment loss provided the Investment Pohmes and Guidelines are followed
B Conflicts of Interest - All participants ~n the investment process shall seek to act responsibly
as custodians of public assets Officers and employees tnvolved in the ~nvestment process
shall refrain from personal business activity that could conflict with proper execution of the
investment program, or which could lmpmr their ability to make impartial investment
decisions
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C Dtsclosure- Anyone involved m investing City funds shall file with the Assistant C~ty
Manager of Fmance and the Investment Committee a statement disclosing any personal
busmess relationship and any material financial interest m a business organization that
handle City of Denton investments An investment officer has a personal bus~ness
relationship with a business organlzatmn if
1 The investment officer owns 10% or more of the voting stock or shares of the
business orgamzatlon or owns $5,000 or more of the fair market value of the business
organization,
2 Funds received by the investment officer from the bus~ness organization exceed 10%
of the investment officers gross income for the prior year, or
3 The investment officer has acquired from the business organ~zation during the prior
year investments with a book value of $2,500 or more for the personal account of the
~nvestment officer
Any investment officer who is related w~thln the second degree by affimty or consangmmty
as determined under the Tex Gov't Code Ann Ch 573 to an individual seekmg to sell an
investment to the C~ty shall file a statement disclosing that relationship w~th the City Council
and the Texas Ethics Commission
D Prudence - The standard of prudence to be used by the investment officmls shall be the
"Prudent Person Rule", as set forth m Tex Gov't Code Ann Sec 2256 006 and w~ll be
apphed m the context of managing an overall portfolio "Investments shall be made with
judgement and care under circumstances then prevailing - which persons of prudence,
d~scretion and intelligence exercise ]n the management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as well as the
probable income to be derived"
Investment officials acting m accordance with wrxtten procedures and the investment pohcy
and exercising due dthgence shall be rehevcd of personal responsththt~es for an individual
security's credit risk or market price change, prowded dcwat~uns from expectations arc
reported in a timely fashion and appropriate action is taken to control adverse developments
E Reporting
Monthly - The D~rector of Fiscal Operations shall submit monthly an investment report, to
the Investment Committee, that summarizes recent market conditions, economic
developments and anticipated mvestment condmons The report shall summarize the
investment s~'ategles employed, describe the portfoho m te~ms of investment securities,
maturities, risk character~stics and other features The report shall ~nelude total investment
return to date and compare the re~n w~th budgetary expectations or projections
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Quarterly - The D~rector of Fascal Operations shall prepare and present to the Investment
Committee and City Council a written report on the C~ty's Investment transactions for the
preceding reporting period The report shall 1) describe in detail the investment position of
the City as of the end of the reporting period, 2) prepared jointly by all investment officers,
3) signed by each investment officer, 4) contain a summary statement of each pooled fund
including a) beginning market value for the reporting period, b) additaons and changes to the
market value during the period, c) ending market value for the period, and d) fully accrued
lntorest for the reporting period The summary statement for each fund group must be
prepared in compliance with Generally Accepted Accounting Principles (GAAP) 5) State
the book value and market value of each separately invested asset at the beginning and end
of the reporting period by type of asset and fund type invested, 6) state the maturity date of
each separately invested asset that has a maturity date, 7) state the account or fund or pooled
group fund for which each individual investment was acquired, and 8) state the compliance
of the investment portfolio of the City as it relates to the investment strategy of the City and
wlthrelevant provisions of the Tex Gov't Code ch 2256
Annually - Within ninety (90) days of the end of the Fiscal Year, the Director of Fiscal
Operations shall present a comprehensive annual report to the C~ty Council on the
investment program and investment actlwty The annual report shall provide a separate
quarterly comparison of returns and suggestions for improvements that might be made in the
investment program The City Council shall review and approve the investment policy and
investment strategies at least annually and be documented by rule, order, ordinance or
resolution whmh shall include any changes made
Comphance Audit - The City's extemal, independent auditor will conduct an annual review
of the quarterly reports in conjunction w~th the annual financial audit The results of the
audit will be reported to City Council upon receipt
The audit will review compliance with management control on investments and adherence to
this pohcy
F The guidelines of retaining records for seven years as recommended in the Texas State
Library Mumctpal Records Manual should be followed The D~rector of Fiscal Operations
shall oversee the filing and'or storing of investment records
VII SUITABLE AND AUTHORIZED INVESTMENT SECURITIES
A Active Portfolio Management - The City intends to pursue an active versus a passive
investment management philosophy That ~s, securities may be sold before they mature if
market conditions present an opportumty for the City to benefit from the trade (Subsection
E)
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B .duthortzed Investments (Per HB 2459 and Sections 2256 009 through 2256 O17 of the AcO -
Assets of funds of the government of the City of Denton may be invested in
1 Obligations of the United States of America, its agencies and lnstrumentahtles
(maturing m less than five (5) years, which have a liquid market w~th a readily
determinable market value,
2 Investment - grade, direct obligations of the State of Texas (maturing ~n less than two
(2) years),
3 Obhgations of the States, agencies thereof, Counties, Cities, and other political
subdivisions of any state having been rated as investment quality by a nationally
recognized investment ratmg firm, and hawng received a rating of not less than "AA"
or its equivalent (maturing in less than two (2) years),
4 Fully insured or collaterahzed Certificates of Deposit issued by state and national
banks or savings bank or a state or federal credit union, domiciled ~n Texas,
guaranteed or insured by the Federal Deposit Insurance Corporation or ~ts successor or
the National Credit Umon Share Insurance Fund or its successor, secured by
obligations described m 1 through 3 above, and that have a market value of not less
than the principal amount of the certificates but excluding those mortgage backed
securities as described in the Tex Gov't Code Sec 2256 009(b) (maturmg in less
than one (1) year),
5 Fully collatenzed direct repurchase agreements (whose underlying purchased
securit~es consist of the foregomg) w~th a defined termination date secured by
obligations of the United States or ~ts agenmes and instrumentalities pledged with a
third party, selected and approved by the City through its Director of Fiscal
Operations, other than an agency for the pledgor and deposited at the time the
investment is made with the C~ty Repumhase agreements must be purchased through
a primary government securities dealer, as defined by the Federal Reserve, or a bank
domiciled in Texas Each issuer of repurchase agreements must sign a copy of the
City's Master Repurchase Agreement (termination date must be 30 days or less),
6 Commercial paper that has a stated maturity of 270 days or less from the date of
~ssuance and is rated A-1 or P-1 or an eqmvalent rating by at least two nationally,
recognized rating agencies
7 a Public Fund Investment Pools with a weighted average maturity of 90 days or
less The pool must be approved (by resolution) by the City Council to provide
services to the City The pool must be continuously rated no lower than AAA
or AAA-m or at an equivalent rating by at least one nationally recognized rating
service A public funds investment pool created to function as a money market
mutual fund must mark to market daily and, stabilize at a $1 net asset value
b To be ehg~ble to receive funds from and revest funds on behalf of an entity
under this chapter, an ~nvestment pool must furnish to the investment officer or
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other authorized representative of the entity an offering circular or other similar
disclosure instrument that contains, at a munmum, the following information
(1) the types of investments in which money is allowed to be invested,
(2) the maximum average dollar-weighted maturity allowed, based on the
stated maturity date, of the pool,
(3) the maximum stated maturity date any investment security within the
portfolio has,
(4) the ob3ectlves of the pool,
(5) the size of the pool,
(6) the names of the members of the advisory board of the pool and the dates
their terms expire,
(7) the custodian bank that will safekeep the pool's assets,
(8) whether the intent of the pool is to maintain a net asset value of one
dollar and the risk of market price fluctuation,
(9) whether the only source of payment is the assets of the pool at market
value or whether there IS a secondary source of payment, such as
insurance or guarantees, and a description of the secondary source of
payment,
(10) the name and address of the independent auditor of the pool,
(11) the requirements to be satisfied for an entity to deposit funds in and
withdraw funds from the pool and any deadlines or other operating
poh¢les required for the entity to invest funds in and withdraw funds
from the pool, and
(12) the performance history of the pool, including yield, average dollar-
weighted maturities, and expense ratios
c To maintain ehg~bihty to receive funds from and invest funds on behalf of an
entity under th~s chapter, an investment pool must furmsh to the investment
officer or other authorized representative of the entity
(1) investment transaction confirmations, and
(2) a monthly report that contains, at a munmum, the following information
(A) the types and percentage breakdown of securities in which the
pool is invested,
(B) the current average dollar-weighted maturity, based on the stated
maturmes of the pool,
(C) the current percentage of the pool's portfoho m investments that
have stated maturities of more than one year,
(D) the book value versus the market value of the pool's portfolio,
using amortized cost valuatlun,
(E) the s~ze of the pool,
(F) the number of participants m the pool,
(G) the custodian bank that is safekeeping the assets of the pool,
(H) a hstmg of dally transaction activity of the entity participating m
the pool,
(I) the yield and expense ratm of the pool,
(J) the portfoho managers of the pool, and
(K) any changes or addenda to the offermg circular
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8 An SEC-registered, no load money market mutual fund which has a dollar weighted
average stated maturity of 90 days or less whose assets consist exclusively of the
assets described in section B 1 and whose investment objectives includes the
maintenance of a stable net asset value of $1 for each share furthermore, it provides
the City with a prospectus and other information required by the SEC Act of 1934 or
the Investment Adwsor Act of 1940 and which provides the C~ty with a prospectus
and other information required by the Securities Exchange Act of 1934 (15 USC
Section 78a et Seq ) or the Investment Company Act of 1990 (15 USC Section 80a-1
et Seq )
9 Other such securities or obligations which are anthonzed by the Act as approved by
City Council upon recommendation of the Investment Committee
C Prohtbtted Investments - The City's authorized investment options are more restrictive than
those allowed by State law Furthermore, this policy specifically prohibits investment in the
followang investment securities
1 Obhgat~ons whose payment represents the coupon payments on the outstanding
pnnmpal balance of the underlymg mortgage-backed security collateral and pays no
pnnmpal
2 Obhgattons whose payment represents the pnnmpal stream of cash flow from the
underlying mortgage-backed security collateral and bears no interest
3 Collaterahzed mortgage obhgatlons that have a stated final maturity date of greater
than 10 years
4 Collaterahzed mortgage obhgations the interest rate of whmh ts determined by an
index that adjusts opposite to the changes ~n a market index
D D~verstficat~on - It ts the pohcy of the City to diversify its investment portfolios The
d~versfficatmn will protect interest income from the volatility of ~nterest rates and the
avoidance of undue concentration of assets tn a specific maturity sector, therefore, portfoho
maturities shall be staggered Securities shall also be selected and revised penodmally by
the Investment Committee In estabhshmg specffic diversification strategies, the two (2)
following general pohmes and constramts shall apply
1 Risk of market price volatility shall be controlled through maturity d~versfficatton and
by controlling unacceptable maturity extensions and a mmmatch of hablhttes and
assets The maturity extension will be controlled by hmttmg the weighted average
maturity of the entire portfoho to 550 days All long-term maturities will be mtended
to cover long-term llabfltt~es In addition, five (5%) percent of the funds tn the
portfoho will be hqmd at all t~mes
2 The Investment Committee shall estabhsh strategies and gmdelmes for the percentage
of the total portfoho that may be invested ~n U S Treasury Securities, federal agency
tnstmmentahttes, repurchase agreements, and ~nsured/collaterhzed certfficates of
deposit and other securities or obhgatxons The Investment Committee shall conduct a
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quarterly review of these guidelines, and shall evaluate the probability of market and
default risk in various investment sectors as part of its considerations
3 Rask of principal loss in the portfolio as a whole shall be minimized by diversifying
investment types according to the following limitations
Investment Twe % of Portfoho
· U S Treasury Notes/Bills 100%
· U S Agencies & Instrumentalities 100%
· State of Texas Obligations & Agencies 15%
· Local Government Investment Pools 50%
· Local Government Obhgatlons (AA) 10%
· Repurchase Agreements 25%
· Certificates of Deposit 100%
· U S Government Money Market Funds 50%
· U S Treasury Notes & U S Agency Callables 35%
By Institution
Repurchase Agreements No more than 10%
All Other No more than 40%
Investment Pools No more than $10,000,000
E Security swaps may be considered as an investment option for the City A swap out of one
instrument into another is acceptable to increase yield, realign for disbursement dates,
extend or shorten maturity dates and improve market sector diversification Swaps may be
initiated by brokers/dealers who are on the City's approved list A horizon analysis is
required for each swap proving benefit to the City before the trade decision is made, which
will accompany the investment file for record keeping
F All investments (governments or bank C D 's) will be solicited on a compeUt~ve basis w~th
at least tl~ee (3) institutions The Investment Committee can approve excep~ons on a case
by case basis or on a general basis in the form of guidelines These guidelines shall take into
consideration the investment type maturity date, amount, and potential disruptiveness to the
City's investment strategy The investment will be made with the broker/dealer offering the
best yield/quality to the City
The quotes may be accepted orally, in writing, electronically, or any combination of these
methods
G Arbitrage - Due to the bond issuance sizes of which the City recurs on a regular bas~s,
arbitrage should be addressed
The Tax Reform Act of 1986 provided limitations restricting the City's investing of tax-
exempt General Obligation Bond proceeds and debt service income New arbitrage rebate
provisions require that the City compute earnings on investment from each issue of bonds on
an annual basis to determine if a rebate is required To determine the City's arbitrage
position, the City is required to perforna specific calculations relative to the actual yield
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earned on the investment of the funds and thc yield that could have been earned if thc funds
had been invested at a rate equal to the yield on the bonds sold by thc City Thc rebate
provision states that periodically (not less than once every five years, and not later than sixty
days after maturity of the bonds), the City Is required to pay the U S Treasury a rebate of
excess cammgs based on the City being in a positive arbitrage position Thc Tax Reform
restrictions require extreme precision m thc monltonng and recording facets of investments
as a whole, and particularly as they relate to yields and computations so as to insure
comphance Failure to comply can dictate that the bonds become taxable, retroactively from
the date of issuance
The City's investment position relative to the new arbitrage restrictions is the continued
pursuit of maximizing y~eld on applicable investments while insuring the safety of capital
and liquidity It ~s a fiscally sound position to continue maximization of yield and rebate
excess earnings, if necessary
VIII SELECTION OF BANKS AND DEALERS
A Deposttory- City Council shall, by ordinance, "select and designate one or more banking
restitutions as the depository for thc monies and funds of the City" in accordance with the
requirement of Tex Loc Gov't Code ch 105 Thc bank shall be selected primarily on
"solvency and stability" and secondly, on rate of interest available
The Director of Fiscal Operations shall conduct a comprehensive review of prospective
depositories credit characteristics and financial history
The bank shall be selected through a formalized bidding process in response to the City's
request for proposal (RFP) outhmng all services required The Investment Committee shall
have the discretion to detenmne the time span for rebaddmg the banking services contract,
however, a two year period will be the minimum length of time between bidding with a 5
year maximum period
Banks and sawngs and loans associations seeking to establish ehglbfllty for the City's
competitive certificate of deposit purchase program, shall submit financial statements,
ex, dance of Federal insurance and other ~nformat~on as required by the Director of Fiscal
Operations
B Investment Brokers/Dealers - The Investment Committee shall be responsible for adopting
the hst of brokers and dealers of government securmes Their selection shall be among only
primary government securities dealers that report directly to the New York Federal Reserve
Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are
adequately financed to conduct public business The Investment Committee shall base its
evaluation of security dealers and financial msUtuUons upon
1 Financial conditions, strength and capability to fulfill commitments,
2 Overall reputation with other dealers or investors,
3 Regulatory status of the dealer,
4 Background and expertise of the individual representatives
Page 12 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
REFERENCE NUMBER
TITLE INVESTMENT POLICY 408 04
The Darector of F~scal Operations shall conduct bus~ness wath secuntaes dealers approved by
the Investment Commattee or with banks selected as outhned an VIII Furthermore, the
commattee must annually revaew thru last of quahfied brokers anthonzed to engage an
lnvestmant transaetaons wdh the Caty Investment Officers shall not conduct business wath
any firm wtth whom pubhe entlt~es have sustained losses on investments or whose name the
Investment Commattee has removed from an approved hst
C Comphanee - A quahfied representatave from any firm offering to engage m tnvestment
transactaons w~th the Caty ~s reqmred to sagn a written instrument Thru certafies that they
have receaved and reviewed a written copy of the C~ty's Investment Pohcy The firm must
acknowledge that at has amplemented reasonable procedures and controls m an effort to
preclude investments between the City and the firm that are not authorized by the Caty's
investment pohcy Approved brokers and dealers must complete Exhabat A and return at to
the Darector of Fiscal Operataons The C~ty's investment officer(s) may not transact
busaness from a person who has not dehvered the reqmred written anstrument to the Caty
D Daversfficataon - To guard against default possabflmes under these condntons, and to assure
&versification of b~dders, business wath any one assuer, or anvestment broker, should be
hmlted to (40%) percent of the total portfoho at any poant ~n t~me In thas way, bankruptcy,
receavarshap or legal actaon would not ammobthze the Caty's ability to meet payroll or other
expenses
IX PRINCIPAL PROTECTION AND SAFEKEEPING
A All banks' and savangs and loan assocmtmns' deposits and investments of CaW funds shall
be secured by pledged collateral w~th a market value equal to no less than 102 percent of the
principal plus accrued interest less an amount insured by FDIC or FSLIC Ewdence of
proper collaterahzatmn m the form of original safekeeping receapts held an the mstatutmn's
trust department or at a thard party mstatutmn not affihated voth the bank or bank holding
company wall be maintained m the office of the D~recter ofFascal Operataons all time Thc
Assastant Caty Manager of Finance, Darector of Fxscal Operatmns or other authorized Caty
Representatave wall approve and release all pledged collateral Collateral vnll be rewewcd
monthly to assure the market value of the securities pledged exceeds investments and/or the
related bank balances The Commattee shall request addatmnal collateral an the event they
deem that thear deposats and investments are not sufficaently protected by thc pledged
collateral
B Safekeeping procedures shall be estabhshed by the Investment Commattce whach clearly
define steps for gaining access to the Collateral should the C~ty determane that the Caty's
funds are m jeopardy Collateral safekeeping and substatutmn agreements wall be a part of
the procedure
C Collateral Defined - The C~ty of Denton shall accept only the following secuntaes as
collateral
Page 13 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
REFERENCE NUMBER
TITLE INVESTMENT POLICY 408 04
I FDIC and FSLIC ~nsurance coverage
2 Umted States Treasuries & Agencies
3 Other securities as approved by the Investment Committee
D Dehvery vs Payment - All transactions will be executed with authorized security dealers
and financial ~nstitutions on a dehvery-versus-payment (DVP) basis That ~s, funds shall not
be wired or paid until verification has been made that the Trustee received the collateral
The collateral shall be held in the name of the C~ty or held on behalf of the City The
Trustee's records shall assure the notation of the City's ownership of or explicit clmm on the
securities The original copy of all safekeeping receipts shall be delivered to the City
Securities will be held by the City's safekeeping agent, which shall be selected through a
competatlve process (RFP) or that agent's representative ~n New York C~ty, or ~n it's account
at the Federal Reserve Bank
E Subject to Audit - All collateral shall be subject to inspection and audit by the D~rector of
Fiscal Operations, or designee, as well as, the C~ty's independent auditors
X MANAGEMENT AND INTERNAL CONTROLS
The D~rector of F~scal Operations, or designee, shall establish a system of ~ntemal controls, which
shall be revaewed by an independent auditor The controls shall be designed to prevent losses of
pubhc funds arising from fraud, employee error, and m~srepresentatmn by third part,es,
unanticipated changes ~n financml markets, or ~mprudent actmns by employees or Investment
Officers of the C~ty
Controls and managerial emphasis deemed most ~mportant that shall be employed include the
followung
Imperative Controls
Custodmn safekeeping receipts records management
Avoidance of bearer-form securities
Documentation of investment bidding events
Written confirmation of telephone transactions
Reconcilements and comparisons of security receipts with the investment subsidiary
records
Comphance with investment pohmes
Verification of all interest income and security purchase and sell computations
17
Page 14 of 14
POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE
REFERENCE NUMBER
TITLE INVESTMENT POLICY 408 04
Controls Where Practical
Control of Collusion
Separation of duties
Separation of transaction authority from Accounting and Record-keeping
Clear delegation of anthonty
Accurate and timely reports
Vahdatlon of investment maturity dec~sions with supporting cash flow data
Adequate training and development of Investment Officials
Review of financial conditions of all brokers, dealers, and depository institutions
Staying reformed about market conditions, changes and trends that require
adjustments ~n ~nvestment strategies
18
Next Document
AGENDA INFORMATION SItEET
AGENDA DATE: December 18, 2001
DEPARTMENT. Finance/Treasury
ACM: Kathy DuBose, F~scal Management and Mumc~pal Services
SUBJECT
Consider acceptance of the Fmcal Year 2000-2001 Annual Investment Report m
accordance w~th the Pubhc Funds Investment Act
BACKGROUND
The City Investment Pohcy (408 04) states that the D~rector of F~scal Operations shall
present a comprehensive annual report (attached) to the C~ty Council on the investment
program and investment act~wty The annual report provides a separate quarterly
comparison of returns, strategies, and suggestions for ~mprovements that m~ght be made
m the investment program
RECOMMENDATION
Staff recommends that the C~ty Courted accept the Fmcal Year 2000-2001 Annual
Investment Report The report ~s m comphance w~th the Pubhc Funds Investment Act and
C~ty Investment Pohcy (408 04)
PRIOR ACTION/REVIEW (Council, Boards, Comm~ssmn)
The Annual Investment Report was presented to the Investment Committee on Monday,
November 12, 2001 All Committee members voted for approval and recommended the
report be submitted to the City Counml for review (5-0)
EXHIBITS
C~ty of Denton Annual Investment Report for Year Ended September 30, 2001
Respectfully submitted
D~rector of F~scal Operations
It's all about community ...
City of Denton
Annual Investment Report
For the Year Ended September 30, 2001
Prepared by the Department of Fiscal Operations
n~TON FII ~
City of Denton, Texas
ANNUAL INVESTMENT REPORT
For Ftscal Year Ended September 30, 2001
Michael A Conduff
Ctty Manager
Kathy DuBose, CPA, CGFO
Asststant Ctty Manager
Ftscal& Muntctpal Services
Prepared By
Diana Ortlz, CGFO, CMFA
Director of F~scal Operattons
Lee Ann Bunselmeyer
Cash & Debt.~ldmtmstrator
ANNUAL INVESTMENT REPORT
TABLE OF CONTENTS
TRANSMITTAL LETTER
Statutory and Pohcy Reqmrements
Depository Bankang Arrangement
Investment Accounting Methodology
Investment Program Accomphshments & Goals
PORTFOLIO SUMMARY
1
Pubhc Funds Investment Act Comphancc Report 4
Portfoho Sumn'mry by Market Sector 5
Portfolio Summary by Broker/Dealer 6
Portfoho Summary by Maturity 7
Portfoho Summary by Fund Type
COLLATER&L ANALYSIS
Collateral Summa~-Fltst State Bank 8
9
Collateral Sunma~-Texas Bank 10
Collateral Summary-Bank One
PORTFOLIOIANALYSIS
11
Interest Income Analysis 13
Invested Balance Comparison 17
Arbitrage Revaew
APPENDIX
Appen&x A- Investment Report for Month En&ng September 30, 2001
Appen&x B- Monthly Comphance Reports for F~seal Year 2000-2001
Appendix C- Glossary
December 18, 2001
TO The Honorable Mayor and Members of the City Council
The Annual Investment Report Is written m accordance w~th state statutes, specifically the Public
rFet~no&~ ~sn;erS,t2~.e~taA,..ct,~..S~c_t~.o.n. 27,$.6, of,.tl}.e ,T_exas Government Code as amended m 2001 Thls
· - ~ es ..... ,, ~u ~ump~y wire me City 5 Investment "olio"
1.. y utat states witlun ninety (90)
days of the end of the fiscal year, the Dwector of Fiscal Operations shall present a comprehensive
annual report to the City Council on the investment program and investment acavlty"
STATUTORY AND POLICY REQUIREMENTS
On February 17, 1987, a resoluaon was passed to adopt a formal Investment policy for
the City of Denton The Investment Policy is rewewed each year as reqmred by state
law, The Investment Committee recently approved a revision on November 12, 2001
The. policy designates the Assistant City Manager of Fiscal and Municipal Services as
being responsible for the City's investment program The Assistant City Manager of
Fiscal and Municipal Services is also responsible for estabhshmg written procedures for
the operation of the program These procedures include the explicit delegation of
anthonty to persons who carry out the chuly investment transactmns Currently, the
Assistant City Manager of Fiscal and Municipal Services has made flus delegation of
authority to the Director of Fiscal Operations Investment officials have the anthonty to
invest al/ City funds w~th the exception of funds contributed to the Texas Municipal
Retirement System (TMRS), the F~remen's Pension Funds of the City of Denton, other
funds established by the City for deferred employee compensation, revenue bond escrow
funds and certain private donations These funds are managed by outside Investment
managers and adrmmstrators and momtored by the Fiscal and Municipal Services
Department
The funds of the City of Dentun, Texas, are Invested in compliance w~th Article 842(a- 1)
entitled the "Public Funds Investment Act" of the Texas Government Code Staff
annually reviews the policy gtudehnes and objectives to ensure compliance w~th the
changes m state law and w~th the investment strategies adopted by the City Council as
summarized below m order of Importance
Safety - Investments are restricted to U S Treasuries, U S Agencies, d~rect
obligations of the State of Texas and its agencies, fully msured/collaterallzed
cemficates of deposit, and fully collaterallzed direct repurchase agreements The
pohcy also addresses types of secuntlas not permitted
Investment advisors and brokers must state m writing that they have received,
reviewed and understand the City's Investment Policy, and, that they will follow
these gmdehnes Furthermore, the Investment Committee must approve each broker
before any Investment transaction is executed with the C~ty All bank deposits and
investments of the City shall be secured by pledged collateral Collateral is
momtored dmly and reported monthly to assure the market value of the securities
pledged exceeds mvestments and/or the related bank balances
Liquidity - Investment maturities are matched with forecasted cash flow reqmrements
to muumlze security sales prior to maturity
Dtverslflcat~on - Investments are thverslfied by security types, maturity, and
broker/dealer to protect mterast mcome from the volatility of interest rates and the
avoidance of undue concentration of assets in a specific maturity, sector, or
broker/dealer
Maturity - Estabhshed weighted average portfolio maturities should not exceed 365
days for operatmg and specml project funds, 550 days for debt service funds, and 650
days for reserve funds
Yield - The City is to receive a yield higher than a comparable maturity treasury bill
for taking non-treasury risk The first measure of success m tins area will be the
sltamment of sufficient mterest mcome to offset inflationary mcreases
II DEPOSITORY BANKING ARRANGEMENT
Depository services should support the objecttves of the City's cash management
program Those objectives are to mammlze investment yield after sat~sfymg the goals of
safety and hqm&ty A depository services contract is reqmred for cities The City of
Denton is currently under contract wath Texas Bank and will review the contract for
renewal m February 2002
The Federal Home Loan Bank of Dallas serves as the City's safekeepmg mstltut~on and
acts as a third party custodian There are three Sll~llficant cash management services that
are provided to the City These sermces are (1) a control concentratuon/sweep account,
(2) the controlled disbursements system, and (3) the on-lme cash management system
These automated services factlltate full uttllzatlon of avmlable cash thus maxnmzmg
interest mcome
III INVESTMENT ACCOUNTING METHODOLOGY
The accounts of the C~ty of Denton are mamtmned on the bas~s of funds or account
groups, each ofwhmh ~s considered a separate accounting entity Therefore, each fund ~s
invested separately ff ~t mmntmns sufficient balances The ~nvestment activity of each
fund is summarized m the tables presented m th~s report
IV INVESTMENT PROGRAM ACCOMPLISHMENTS AND GOALS
A, Accomphshments
Dunng the past fiscal year, the cash and ~nvestment program accomphshed
several major m~tmtlves Some of them include the following
· Racelved the Government F~nance Officers Assocmt~on of Texas
(GFOAT) Dlstmct~ve Innovation Award for outstanding contributions and
lunovatlons m the field of government finance for the Cash Certfficat~on
Program,
· trained over one hundred employees responsible for the cash functions,
· expanded the credit card acceptance program (accepting MasterCard and
V~sa) by ~ncludmg interact and telephone payments,
· completed all petty cash and change drawer audits w~th favorable results,
and
· rewewed and adopted the ~nvestment pohcy w~th minimal changes
B Goals
Cash Tratntn~ - Provide follow-up cash certfficat~on trmnmg for all new fund
custodians and supervisors The sessions Include trmnmg on performance
standards, cash handler responsibilities, counterfeit currency recogmtmn, check
fraud, dmly cashier op~ratmns, petty cash operations, security procedures, loss
prevention and the cash handhng regulatmns pohcy
Investment Tratntne - All investment officers and support staff must complete ten
hours of Investment trmmng as reqmred by state law
Cashflow Forecast - One of the most ~mportant aspects of cash management ~s the
attmnment of a healthy cashflow A cashfiow forecast will be prepared to assist m
the analysis of the cash of investments
Interest Income - Th~s report includes the earnings generated through
investments Staff ~s continuously faced w~th the challenge of optimizing
earnings m an uncertain rate environment
Postttve Pap - Th~s system ~s desxgned to detect fraudulent checks before they are
processed Implementation will enable the C~ty to ensure that only the checks that
have been issued and are reported for payment are processed
The enclosed Annual Investment Report ~s m compliance w~th the investment strategies adopted
by the City Council as well as m accordance w~th the relevant prows~ons of the Texas
Government Code Chapter 2256 The objectives adopted by the C~ty Council will continue to
drive the investment program m the next fiscal year m order to achieve maximum protection of
pubhc funds
Kathy DuBose D~ana G Ortlz
Assistant C~ty Manager D~rector of Fiscal Operations
F~scal & Mumc~pal Services
ANNUAL INVESTMENT REPORT
For Period Ending September 30, 2001
%Of
Senurit¥ T~pe Mkt to Book Par Value Book Value Marke~ Value
U S FedamlAgenw-Coupon 10244% $t05,900,000 $106,182,243 $t08,777,863
U S FederalAgenoy-Dlsoount 10047% 47,642,000 47,000,303 47,222,889
U S FedemlAgency-Callable 101 48% 89,056,0D0 89,200,238 90,524,~.~.~.
U S Treasury ;~ooritlas-Dlsoount 100 03% 4,000,000 3.993,691 3,995,000
U S Treasury 8e~urltlas,.Coupon 102 44% 2,000,000 2,020,048 2,069,375
Money Market 100 00% 11,897,127 11,897,127 11,897,127
101 61% $26014951127 $26012931650 ~[;26414881697
PORTFOLIO SUMMARY REPORT
Beginning Par Value as of 09/30/2000 $215,261,000
Beginning Book Value as of 09/30/2000 $214,345,090
Beginning Market Value as of 9/30/2000 $213,685,367
*WAM at Beginning Date (Days) 464
Ending Par Value as of 09/30/2001 $260,495,127
Ending Book V~lue as of 09/30/2001 $260,293,650
Ending Market Value aa of 09/30/2001 $264,486,697
"NAM at Ending Date (Days) 555
Change to Market Value $50,801 330
The iocmaas in portfolio balance is due to the receipt of UUIIfy Revenue, Certlfl~tes
of Obl~ation~ General Obl~atlon bonds and pn~asds from the Spencer Plant Sale
This report la in full oompllance with the Investment strategy aa established for the Investment Portfolio and the
Publio Funds Investment A~t (Chapter 2256 023)
Assistant City Manager Dlrentor of Fiscal Opomtiona
......~.R_~_ .e. wed By vpr~pared By' ~
Scott D Mclntyre, CCM Lee Ann Eunaslmeyer
First Southwest Asset Menagament, Inc. Cash & Debt Admlnl~=ator
Investment Strategies Compliance Report
For Period Ending September 30, 2001
OPERATING FUND8
The investment strategy for operating fonds and commingled pools containing operating fonds have as their primary
objective to assure that anticipated cash flows ara matched with adequate investment liquidity The secondary obje~ive is
to structure a portfolio, which will m~mmize volatility dudng economic oyclea This may be accomplished by purchasing
high quality, short-term securities, which will compliment each other In a leddered maturity structure A dollar weighted
average maturity of 365 days or less will be maintained and calculated by using the stated final maturity date of each
security
Beg;nnlng Book Value as of 09/30/2000 43,801,281
Beginning Market Value as of 9/30/2000 43,683,630
*WAM at Beginning Date 240
Ending Book Value as of 09/30/2001 34,475,179
Ending Market Value as of 09/30/2001 34,962,779
Unrealized Gainl(Loss) 487,601
Change to Market Value * (8,720,851)
WAM at Ending Date 316
WAM Policy Benchmark _< 365
* The porlfolio becrease is due to late maturities at the end of l~e fiscal year These ~unds
will be reinvested In O~tober
BOND FUND8
Investment stratag~es for debt service funds shall have as the primary objective the aasuranco of Investment liquidity
adequate to cover the debt service obligation on the required payment date Secorltlee purchased shall not have a stated
final maturity date which exceeds the debt service payment date A dollar weighted average maturity of 550 days or less
will be maintained and calculated by using the stated final maturity date of each secudty
Beginning Book Value as of 09/30/2000 102,847,084
Beginning Market Value as of 9/30/2000 102,831,344
*WAM at Beginning Date 506
Ending Book Value aa of 09/30/2001 169,587,614
Ending Market Value aa of 0913012001 172,456,687
Unrealized Gainl(Loss) 2,869,053
Change to Market Value * 69,625,323
WAM at Ending Date 642
WAM Policy Benchmark _< 550
RE8ERVEFUND8
Investment strataglea for debt service reserve emergency and contingency funds shall have as the primary objective the
ability to gene~rata a dependable revenue stream to the appropriate fund from securities with a Iow degree of volatility
Securities shquld be of high quality and, except aa may be required by the bond ordinance specific to an individual
issue, of short to Intarmediata-tarm maturities with stated final maturities not exceeding five (5) years Volatility shall be
further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity
and quality rshge, without paying a premium, if at all possible Such securities will tend to hold their value during
economic cycles
Beginning Book Value as of 09/3012000 66,359,795
Beginning Market Value aa of 9/3012000 65,834,509
WAM at Beginning Date 555
Ending Book Value as of 09/3012001 54,978,562
Ending Market Value es of 09/30/2001 55,801,478
Unrealized Gainl(Loss) 822,915
Change to Market Value * (10,033,031)
WAM at Ending Date 443
WAM Policy Benchmark _< 050
· The porlfolio baler,s dec, seco ~8 due to a change in reserve requirements
as required by the bond covenant
CONSTRUCTION AND SPECIAL PURPOSE FUNDS
Investment attatagles for construction projects or spec a purpose fund portfolios will have as their primary objective to
assure that a~flolpetad cash flows are matched with adequate Investment liquidity These portfolios should include at
least 10% in Ittlghly liquid securities to allow for flexibility and unanticipated project outlays The stated final maturity
dates of secuittles held should not exceed the eetlmatad project completion date A dollar weighted average maturity of
365 days or I~sa will be maintained and celoulatad by using the stated final maturity of each security
Beginning Book Value as of 0913012000 1,336,930
Beginning Market Value as of 9130/2000 1,335,884
WAM at Beginning Date 88
Ending Book Value aa of 09/30/2001 1,252,296
Ending Market Value es of 0913012001 1,265,774
Unrealized Gainl(Loas) 13,478
Change to Market Value (70,110)
WAM at Ending Date 313
WAM Policy Benchmark < 365
ANNUAL INVESTMENT REPORT
Portfolio Summary By Market Sector
Market Sector Dec 31, 2000 Mar 30~ 2001 June 30~ 2001 Sept 30, 2001
US Federal Agency -Coupon $115,480,000 $119,040,000 $109,900,000 $105,900,000
U S Federal Agency -Discount 17,290 000 32,932,000 41,142,000 47,642,000
U S Federal Agency-Callable 55,971,000 46,110,000 109,556,000 89,056,000
U S Treasury Securities-Coupon 4,500,000 2,000,000 2,000 000 2,000,000
U S Treasury Securttles-D~scount 0 0 0 4,000 000
Money Market 10,500,000 3 500 000 14,854 110 11,897 127
Total Par Value $203,741,000 $203,582r000 $277r452~110 $260,495r127
The portfolio is restricted to U S Treasuries (maturing in less than five years), U S Agencies, (maturing in less
than two years), bonds issued by Texas public ent~bes and rated AA or better (maturing in less than two years),
fully insured/collateraltzed certificates of deposit (maturing in less than one year), and fully collateralized
repurchase agreements (maturing in less than thirty days) The investments are diversified by security type to
protect interest income from the volatility of interest rates and to protect the portfolio from the risk of principal loss
in any one market
Policy
Performance Indicators Benchmark Dec 31, 2000 Mar 30, 2001 June 30~ 2001 Sept 30, 2001
Average Yield to Maturity 6 53% 5 91% 5 28% 5 05%
Policy Benchmark-(S~x Month T-B#1) 5 90% 4 43% 3 55% 2 32%
Callable Securibes _< 25 00% 27 51% 22 68% 39 56% 34 27%
Investment By Type _<
U S Traasunes 100 00% 2 21% 0 98% 0 72% 2 30%
U S Agencies 100 00% 92 64% 97 30% 93 93% 93 13%
Money markets 50 00% 5 15% 1 72% 5 35% 4 57%
4
ANNUAL INVESTMENT REPORT
Pon'folio Summa~ By Broker/Dealer
Broker/Dealer Dec 31r 2000 Mar 30~ 2001 June 30~ 2001 Sept 30~ 2001
Banc One Capital Corp* $22,790,000 $42,682,000 $51,752,000 $51,252,000
JW Gsnesla* 47,991,000 42,420,000 66,110,000 42,610,000
Everen Securities 32,650,000 24,650,000 4,500,000 4,500,000
Federated Investors* 10,500,000 3,500,000 14,854,110 11,897,127
First Southwest* 28,080,000 22,650,000 34,621,000 37 121 000
Paine Webber* 0 7,500,000 14,500,000 16,500,000
Merrill Lynch* 5,000,000 5,000,000 1,500,000 1,500,000
Service Asset Mgt* 12,000,000 21,500,000 45,500,000 34,000,000
Shay Financial* 34,230,000 28,680,000 51,115,000 59,115,000
Vinlng-Sparks 10,500,000 5,000,000 4 000,000 2,000,000
Total Par Val~e $203r74%000 $203~582~000 $277,452,110 $260 495,127
~ (*) Denotes Aotive Brokers/Banks for Fiscal Year 2000-2001
I
To guara against aefault pcasibll~ies, and to pro.ore dlwrsl~tion of bidders, business with any one i~uer, or
invest~ent broker, Is limited to fo$ {40%) perant of Ihs total po~olio at any point in time As shown in the
table below, the po~olio aahered to thi~ provision throughout the qua~er
Pohcy
Performance Ind!¢~_ !_nfs Benchmark Dec 3t, 2000 Mar 30, 2001 June 30~ 2001 Sept 30, 2o01
Highest Broker Percent < 40 00% 23 55% 20 97% 19 86% 22 69%
ANNUAL INVESTMENT REPORT
Portfolio Summary By Maturity
Maturity Time Frame Dec 31, 2000 Mar 30, 2001 June 30, 2001 Sept 30, 2001
00-06 Months $70,790,000 $42,790,000 $73,996,110 $86,039,127
06-12 Months 27,630,000 53,292,000 43,250,000 40,250,000
12-18 Months 31,571 000 27,250,000 31,500,000 34,860,000
18-24 Months 14 000,000 27,500,000 20,860,000 23,925,000
24-30 Months 10 650,000 11,075,000 24,680,000 11,755,000
30-36 Months 19,180,000 17 255 000 6,500,000 7,000,000
36 & Over 29,920,000 24 420,000 76,666 000 56,666,000
$203,741,000 $203~582,000 $2771452t110 $260~495,127
The risk of market price volatility is minimized through maturity d~verelflcation The maturities on our investments are
staggered over a series of six-month Increments to provide cash flow based on the anticipated needs of the City Liquidity
is achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with
active SeCOnda~ markets Short-term investment pools and money market funds provide daily liquidity and are utilized as
a competitive yield alternative to fixed maturity investments
Policy
Performance Indicators Benchmark Dec 31,2000 Mar 30~ 2001 June 30~ 2001 Sept 30, 2001
Weighted Avg Maturity _< 550 00 485 00 530 00 687 00 555 00
Maturities <30 days >_ 5 00% 12 27% 5 30% 8 24% 8 79%
ANNUAL INVESTMENT REPORT
Portfolio Summary By Fund Type
Fund Type Dec 31r 2000 Mar 30~ 2001 June 30, 2001 Sept 30, 2001
Operating Fund $43,110,000 $42,770,000 $33,535,000 $34,535,000
Bond Fund 98,186,000 91,967,000 177,138,000 169,888,000
Reserve Fund 61,095,000 67 145,000 65,779,110 54,822,127
Special Fund 1,350,000 1,700,000 1,000,000 1,250,000
$203,741~000 $203,5821000 $277,452~110 $260~495,127
As shown in the graph above, the investments In the portfolio are d~stnbuted by fund type Praservabon and safety
of principal of these investments ~s the most important strategy AIl investments shall be h~gh quality secuntles with
no perceived default risk Market fluctuations will occur, however, by managing the weighted average days to maturity
(WAM) for each fund type losses are minimized
Policy
Pedormance Indicators Benchmark Dec 31 r 2000 Mar 30, 2001 June 30~ 2001 Sept 30, 2001
WAM by Fund <
Operating Fund 365 311 492 387 316
Bond Fund 550 527 483 731 642
Reserve Fund 650 551 630 727 443
Special Fund 365 50 43 324 313
7
ANNUAL INVESTMENT REPORT
First State Bank - Collateral Review
Coupon
Securities Rate Dec 31, 2000 Mar 30,2001 June 30~ 2001 Sept30, 2001
FDIC $100 000 $100,000 $100,000 $100,000
League CityTxCO 4 90% 345,994 350,599 346,684 352,335
Frisco TX CO 4 50% 419,823 428~720 423,131 435~960
$865,817 $8791319 $869~815 $8881295
Average Checking Account Balance $250 909 $53,367 $88,429 $77,238
Ending Checkln~l Account Balance 251,600 55~444 70r065 83~065
Mar
· Cash [] Excess Collateral
Chapter 2257 of the Local Government Code outhnes the raqu~rements for collateral protection The pledged
collateral listed above is held with Texas Commerce Bank (third party custodian) under a joint safekeeping
agreement The collateral position is monitored da~ly and reported monthly to assure 100% coverage of the
funds
Pohcy
Performance Indicators Benchmark Dec 31, 2000 Mar 30, 2001 June 30~ 2001 Sept 30~ 2001
Collateralized Amount _> 100 00% 344 12% 1585 96% 1241 44% 1069 40%
ANNUAL INVESTMENT REPORT
Texas Bank. Collateral Review
Coupon
Securities Rate Deo 31 ~ 2000 Mar 30~ 2001 June 30, 2001 Sept 30~ 2001
FDIC $100,000 $100,000 $100,000 $100,000
CMO 5 80% 2,328,580 2,193,973
FNMA 7 00% 1,602,521 1,525,575 1,432,455 1,210,703
FHLMC 7 00% 1,485,601 1,419,168 1,359,759 1,319,158
FNMA 6 50% 890,695 867,918 821,380 790,893
FHLMC 6 50% 821,380 938,391
FNMA 6 74% 871,552 795,120 705,937 630,607
GNMA 7 20% 541,091 524,874
FHLMC 7 18% 1,032,470 1,035,249 964,984 799,296
$5~982~839 $5,743~030 $9,075~566 $8~507,896
Average Chec[king Acoount Balance $3,261,267 $4,146,397 $4,091,396 $4,389,546
Ending Cheoklng Account Balance 5~620r744 2,427,956 1,948~844 8,501,896
I Cash [] Excess Collateral
Chapter 225~ of the Loc, al Government Code outlines the requirements for collateral protection The pledged
collateral is held with Federal Home Loan Bank of Dallas (third party custodian) under a joint safekeeping
agreement The collateral position is monitored dally and reported monthly to assure 100% coverage of the
funds
Policy
Performance llndlcators Benchmark Dec 31 r 2000 Mar 30, 2001 June 30, 2001 Sept 30~ 2001
Collateralized Amount > 100 00% 106 44% 236 54% 465 69% 100 07%
9
ANNUAL INVESTMENT REPORT
Bank One. Collateral Review
Coupon
Secur~les Rate Dec 31,2000 Mar 30~ 2001 June 30, 2001 Sept30~2001
FDIC $100 000 $100,000 $100,000 $100,000
US Treasu~ Note 5 75% 408,289 420,074 420,344 420,868
$508,289 $520~074 $520,344 $520,868
Average Checking Account Balance $208 461 $178,948 $262,401 $409,006
Ending Checking Account Bala nco 439,106 150~001 135~044 305,180
[]Cash []Excess Collateral
Chapter 2257 of the Local Government Code outlines the requirements for collateral protection The pledged
collateral listed above ~s held with Bank One for the C~ty's Lockbox accounts The collateral position Is
monitored dally and reported monthly to assure 100% coverage of the funds
Policy
Performance Indicators Benchmark Dec 31, 2000 Mar 30, 2001 June 30~ 2001 Sept 30~ 2001
Collateralized Amount > 100 00% 115 76% 346 71% 385 31% 170 68%
10
CITY OF DENTON
INTEREST INCOME ANALYSIS
Budgeted Un-Audited Variance 2000-01 Actual Variance
Fund Name , FY 2000-01 FY 2000-01 Budget v$ Actual FY 19~9-2000 Actual va Actual
OPERATING FUNDS
100 General Fund* $ 960,000 $ 1,015,452 $ 55,452 $ 908,694 $ 106,759
261 Recreation Fund 11,000 5,849 (5,151) 7,047 (1,198)
610 Electric Fund * 4,171,000 4,662,070 491,070 3,746,067 916,003
620 Water Fund * 2,450,973 3,343,822 892.849 2,134,598 1,209,224
625 Wastewater Fund * 1,248,213 1,516,095 267,882 1,113,453 402,642
630 Solid Waste 343,500 221,453 (122,047) 262,406 (40,953)
680 Building Inspection Fund 0 20,834 20,834 22,185 (1,351)
720 Motor Pool 390,000 329,906 (60,094) 343,281 (13,375)
770 Tach Bervlcas Fund 0 22,260 22,260 44,649 (22,389)
740 R~sk Management Fund 300~000 275r840 (24~160) 305r814 (29~974)
· /r~/u~=~bts~lnt~u $ 9,874,686 $ 11,413,580 $ 1,538,894 $ 8,888,194 $ 2,525,386
BOND FUNDS
412 Joint Clonstruction Denton Co $ 17,844 $ 26,650 $ (8,806)
432 Street improvement 2,043 5,933 (3,890)
437 GIS& Telephone Systems 0 0 0
440 Street Improvement Bond '85 4,087 8,174 (4,087)
441 1987 General Obligation 0 0 0
443 1988 General Obligation 0 0 0
444 1989 General Obligation 0 0 0
445 1992 Contractual Obligation 0 0 0
446 1992 General Obligation 4,555 9,060 (4,505)
449 1993 General Obligation 0 0 0
450 1993-A Certificate of Obligation 0 0 0
451 1994 Cartiflcate of Obtigation 0 0 0
452 1995 General Obligation 54,031 55,000 (969)
453 1996 General Obligation 10,227 41,921 (31,694)
454 1996 Certificate of Obligation 23,726 0 23,726
455 City Hall Renovation 0 0 0
457 One Time Building Needs 5,567 5,307 260
458 One Time Needs 0 0 0
459 1997 General Obligation 50,222 78,450 (28,228)
460 1998 Certiflcatee of Obligation 5,939 81,632 (75,693)
461 1998 General Obligation 282,541 310,069 (27,528)
462 1999 General Obligation 367,330 360,679 6,651
464 2000 General Obligation 70,545 206,776 (136,231)
468 Technology Fund 61,218 15,852 45,365
469 Reaeemh Blvd 3,037 6,040 (3,003)
473 Furniture Fund 3,094 7,550 (4,456)
477 2000 Certificate of Obligation 151,007 92,567 58,439
478 2000 General Obligation 165,818 60,201 105,617
480 2001 Certificate of Obligation 106,084 0 106,084
481 2001 General Obligation 166,076 0 166,076
633 1995 C. ertiflcate of Obligation 1,800 4,299 (2,498)
634 1996 Certificate of Obligation 47,801 99,942 (52,141)
635 1999 Certificate of Obligation 25,757 32,206 (6,450)
636 2001 Certificate of Obligation 107,461 0 107,461
11
CITY OF DENTON
INTEREST INCOME ANALYSIS
Budgeted Un-Audited Variance 2000-01 Actual Variance
Fund Name FY 2000-01 FY 2000 0t Budget ve Actual FY 1999-2000 Actual vs Actual
665 Water Impact Fees 213,803 110,601 103,201
677 Wastewater Impact Fees 15,021 9,854 5,167
690 2000 Drainage Revenue Bonds 153,867 69,929 83,938
691 2001 Drainage Revenue Bonds 48,005 0 48,005
726 1999 Cerl~ficate of Obhgat~on 0 29,250 (29,250)
727 2001 Certificate of Obr~gat~on 4,271 0 4,271
771 1998 CO- Tach Services 20r130 30r661 (10~531)
$ 2,192,906 $ 1,758,603 $ 434,302
SPECIAL PROJECT FUNDS
201 Hotel/Motel Funds $ 13,504 $ 19,299 $ (5,796)
213 CDBG 0 77 (77)
821 Park Land Ded~cabon Trust 9,761 7,550 2,211
822 Park Development Trust Fund 45,738 43,573 2,165
Misc Income 3,065 6~670 (3~604)
$ 72,068 $ 77,169 $ (5,101)
$ 13~6781554 $ 1017231967 $ 2~9541588
FIVE YEAR INCOME COMPARISON
15,000,000
10,000,000
5,000,000
1
[~FY 1996-97 8,123,602
[] FY 1997-98 8,336,700
[] FY1998-99 9,438,318
[] FY 1999-00 10,723,967
[] FY 2000-01 13,678,554
The table above demonstrates interest income exceeded budget projections by
$2,879,188 As shown m the graph above, income has grown at an average rate of
approximately twelve percent (12%) a year
12
CITY OF DENTON
INVESTED BALANCE COMPARISON
(For Forlods Ending September 30)
Un-Audited Actual
Fund Name FY 2000-2001 FY 1ggg-2000 Variance
OPERATING FUNDS
100 General Fund sg,000,000 $9,500,000 ($500,000)
251 RecreatIon Fund 0 160,000 (180,000)
610 Electric Fund 5,000,000 6,250,000 (1,250,000)
620 Water Fund 5,360,000 9,500,000 (4,140,000)
625 Wasteweter Fund 2,500,000 5,560,000 (3,060,000)
630 Solid Waste 4,500,000 6,750,000 (2,250,000)
550 Building Inspections Fund 1,175,000 400,000 775,000
720 Motor Pool 6,500,000 5,450,000 1,050,000
740 R~sk Management Fund 4,000,000 5,250,000 (1,250,000)
770 Tech Services Fund 500~000 400~000 100~000
$ 38,535,000 $ 49,220,000 ($10,685,000)
BOND FUNDS
301 General Debt Service Fund $0 $100,000 ($100,000)
303 General Reserve Fund 1,500,000 0 1,500,000
412 Joint Construction Denton Co, 500,000 500,000 0
432 Street Improvement 0 100,000 (100,000)
437 GIS& Telephone Systems 0 0 0
440 Street Improvement Bond '85 0 200,000 (200,000)
441 1987 General Obligation 0 0 0
444 1989 General Obhgat~on 0 0 0
446 1992 General Obligation 0 150,000 (150,000)
451 1994 Certificate of Obligation 0 0 0
452 1995 General Obhgat~on 1,000,000 1,000,000 0
453 1996 General Obligation 0 250,000 (250,000)
454 1996 Certificate of Obhgat~on 0 0 0
455 City Hall Renovation 0 0 0
457 One Time Building Needs 0 200,000 (200,000)
458 One Time Needs 0 0 0
459 1997 General Obhgat~on 2,000,000 1,500,000 500,000
460 1998 Certificates of Obligation 250,000 250,000 0
461 1998 General Obligation 3,500,000 5.150,000 (1,650,000)
462 19~19 General Obligation 4,500,000 6,000,000 (1,500,000)
464 1999 Certificate of Obligation 1,000,000 1,000,000 0
468 Technology Fund 755,000 1,105,000 (350,000)
469 Research Blvd 0 100,000 (100,000)
473 Furniture Fund 0 150,000 (150,000)
477 2000 Certlflcetes of Obligation 2,000,000 2,500,000 (500,000)
478 2000 General Obligation 2,500,000 3,500,000 (1,000,000)
13
CITY OF DENTON
INVESTED BALANCE COMPARISON
(For Periods Ending September 30)
Un-Audited Actual
Fund Name FY 2000-2001 FY 1999-2000 Variance
480 2001 Certificates of Obl~ga~ton $5,500,000 $0 $5.500.000
481 2001 General Obligation 12,121,000 0 12.121,000
611 Electric Bonds 0 0 0
612 Electric Bond Ser~es 1990 0 0 0
614 System Emergency Fund 0 250,000 (250,000)
616 Utility S~nking Fund 3,925,000 9,620,000 (5,695.000)
617 Utility System Reserve Fund 3.710.000 4,750,000 (1,040,000)
618 Extension & Improvement Fund 4,000,000 5,400,000 (1,400,000)
619 Electnc Reserve 45,397,127 51,545,000 (6,147,873)
633 1995 Cerbflcate of Obl~gabon 0 100,000 (100,000)
634 1996 Cerbficate of Obl~gabon 1,000,000 1,650,000 (650,000)
635 1999 Certificate of Obl~gabon 500,000 1,000,000 (500,000)
636 2001 Certificates of Obligation 1,500,000 0 1,500,000
653 1998 Electric Bond Fund 1,000,000 750,000 250,000
654 2000 Electric Bond Fund 4,750,000 6.571,000 (1,821,000)
655 2000 Electnc Bond Fund 3,000,000 2,500,000 500,000
656 2001 Water Revenue Bonds 30,550,000 0 30,550,000
661 Water Bond Ser~es 1988 0 300.000 (300,000)
662 Water Bond Ser~es 1989 2,000,000 1,400,000 600,000
664 Army Corp of Engineers Refinancing 8,500,000 7,310,000 1,190,000
665 Water Impact Fees 5,642,000 2,600,000 3,042,000
666 2000 Water Revenue Bonds 19.500.000 22,930.000 (3.430.000)
667 2001 Revenue Bonds 18,000,000 0 18,000.000
675 Wastewater Bond Series '96 2,500,000 500,000 2,000,000
676 1998 Wastewater Bond Fund 1,500,000 2,000,000 (500,000)
677 Wastewater Impact Fees t,500,000 400,000 1,100,000
678 2000 Wastewater Revenue Bonds 13,610,000 15,860,000 (2,250,000)
682 2001 Wastewater Revenue Bonds 5,500,000 0 5,500,000
690 2000 Drainage Revenue Bonds 2,500,000 3,000,000 (500,000)
691 2001 Drainage Revenue Bonds 3,000,000 0 3,000,000
727 2001 Certificates of Obhgat~on 500,000 0 500,000
771 1998 Certificates of Obhgat~on 0 500~000 (500,000)
$ 220,710,127 $ 164,691,000 $ 56,019,127
14
CITY OF DENTON
INVESTED BALANCE COMPARISON
(For Periods Ending September 30)
Un-Audited Actual
Fund Name FY 2000-2001 FY 1999-2000 Variance
SPECIAL PROJECT FUNDS
201 Hotel/Motel Funds $0 $250,000 ($250,000)
245 Moore Building 0 150,000 (150,000)
249 Law Enforcement Block Grant 0 0 0
821 Park Dedication Trust 250,000 150,000 100,000
822 Park Development Trust 1 ~000~000 800~000 200,000
$ 1,250,000 $ 1,350,000 $ (100,000)
$ 260~495,127 $ 215,261,000 $ 45~234,127
Invested Balance Comparison
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
1
IFY1996-97 $129,722,000
DFY1997-98 $159,426,000
[]FY1998-99 $165,935,000
IFY1999-00 $215,261,000
[]FY2000-01 $260,495,127
Asshown ~ ~echa~above, ~e ~ves~dbalance ~r~e Cffyhas g~wn
atenaveragerateofappmximatelytwelvepement(12%)ayear
15
16
The bond funds are subject to Federal Arbitrage Rebate Regulations which require that income earned ~n the portfoho
by the City that causes the yield of the portfolio to be higher thnn the bond y~eld paid on that debt ~ssue must be rebated
to the federal government After a three-year period, these portfohos must be yield-restricted to the arb~trnge y~eld In
fiscal year 2000-01, the portfolio subject to yield resmetlon had positive arbitrage Federal regulations allow the City to
average positive arbitrage ~md negative arbitrage for a period of five years A detail of the arbitrage llabthty m each bond
issue is shown in the table
City of Denton, Texas
Summary of Rebatnble Arbitrage and Yield Restrletlon
As of 9/30/01
Preliminary Numbers
04/07/92 64s% $4,500000 ut]lltySys Revenue Sones 1992 (9266391)
02/23/93 463% S 1,450,000 Cer~ ofObhg, Sertes 1993 (21) (18~ S3683
04/20/93 $ 29°/0 S2,975,000 General Obligation, Sones 19~3 (21)
04/20/93 5 26% $6,575 000 Ut~hty Sys Revenue, Series 1993 (56 776 31) (19', 7 644 14
06/29/93 4 95% $13 315 000 Genernl Obh& Rfdg. Sones 1993 A (21)
06/29/93 $17% $27,085 000 Utllay Sys Ret~mdlng, Ser~es 1993 A 94,$20 62 (9) 88 800 00
06/29/93 $6 045 000 Ut~hty Sys Rev Rfdg, Series 1993 B (3)
12/01/93 4 98% $2,705 000 Cea of ebbS. Sones 1993-A (21)
04/21/94 $.3,220,000 Cert of Obhs Sones 1994 (2) (17)
03/29/95 $2,000 C00 cea of Oblig,Sene~ 1995 (2) (17)
03/29/95 $1610,000 Genernl Obhs. Ser~ 1995 (2) (17)
06/18/96 $ 98% $5,190,000 Cert of ebbS., Ser~es 1996 (23 323 28) ~
06/18/96 5 98% $2 5~ 5,000 General Obits, Series 1996 (15 679 47)
06/18/96 598% $36.510000 Ut~iaySys RevRfdg. Senes1996A 9,05212 (16) 1863464
06/18/96 598% $2,750000 Ut~lay Sys Revenue Sones 1996 (2365490)
04/01/97 $4,700,000 General Obhgation Bonds, Sones 1997 (2) (17)
04/28/98 4 83% $7 175 000 Ut~hty Sys Revenue, Series 1998 169.166 05
05/13/98 4 74% $5~625~000 CertIficates of Ob[t~ Sones 1998 701858.61 m
17
City of Denton, Texas
Summary of Rebatable Arbltrase and Yield Restriction
As of 9/30/01
Preliminary Numbers
Rebatnbte Yield
Delivery Bond Par Arbitrage Restriction Total Amount
Date Yield Amount Issue Description 09/30/2001 09/30/2001 Paid to IRS
05/13/98 4 741096% $9 660 000 General Obhgatton Sertes 1998 269,449 71 (13)
08/25/98 5 133850% $36795000 Utd~tySy$ Rev Rfdg Series 1998A 167,87991 (9) (13)
08/25/98 5 133850% $7640000 Utdltygys Rev Rfdg Series 1998B 32,8849g (9) (13)
05/06/99 4 627653% $8 215 000 General Obligation Bonds Series 1999 19L816 57 (22) (13)
05/06/99 4 627653% $6 935 000 Certificates of Obhgaoon Series 1999 88,891 75 (22) (13)
05,~6/99 4 646175% $7 020 000 General Obhgetmn Refunding Bonds
Series 1999A 102,876 02 (5) (13)
05/23/00 5506816% $51085000 UtllltySys Revenue Senes2000A 604.887.39 (13)
05/23/00 $3.795 000 Utddy Sys Revenue Sertes 2000B (22)
06/06/00 5 620532% $3 125 000 Cerhfieates of Obhgatmn Series 2000 6,1,190 33 (13)
06/06/00 5615826% $3750000 General Obhg, Series 2000 1fl,674 86 (13)
05/10/01 $59 545 000 Utdlty Sys Revenue Refunding & (27 879 13)
Improvement Bonds Series 2001
06/05/01 $14 245 000 General Obhgntlon Bonds Series 2001 (12 552 18)
06/05/01 $12 120000 Certificates of Obhgat~on Series 2001 (1565434)
ITotal Cumulative Rebatable Arbitrage 1?881t148.59 1~279 70 639t366 19
(I) Final llnblhty calculeted by prior calculation agent
(2) Met small ~ssuer exceptmn
(3) lnxnblelssue Notbubject IoRebate
(4) Paid 90% et hedlhty m the amount et $47 477 70 on 1/27/95
(5) Advanced Retundmg Posstbie translerred proceeds
(6) Assumes No I ransterred Proceeds Rom 84 & 84A Per No Arbitrage Certificate
(7) l'unda spent negatwe Imbd~ty
(t~) AII bonds redeemed l~malcalculatlonspertormed
(9) Reserve i. und Only
18
CITY OF DENTON
~ B-2131 31359~ 0~31a~l ~5a~3 5~ ~ ~079 511~67 ~079 507~ 0 3~ 632 4~
CITY OF DENTON
~ lton~for Mont~ Ending Sel~a~er
FUND ISSUER ASSET CUSIP PURCHASE MATUI~I'Y PAR PRINCIPAL ERDING ENDING BEGINNING BEGINNING CHG TO CHG TO W/~M YIELD
NO NO DATE DATE VALUE BOOK MARKET BOOK MARKET BOOK ~ DAYS %
FI~MA B-2133 31359MJZ7 08/31/2001 06/2512003 250,000 250 000 252 040 255 640 252 040 252 040 0 3 600 632 4 44
FHI~ B-1970 3133MCXY6 04/30/2001 01/30/2006 2000000 2000000 2,000000 2023125 20000~0 2020000 0 3125 1582 600
FNMA B-2135 31359MJZ7 08/31/2001 06/25/2003 1,500000 I 500000 1,512,238 1,533,800 1 512,238 I 522 081 0 11 719 632 4,44
$3,500,000 $3,500000 $3,512,238 $3,556,925 $3,512,238 $3,542,081 $0 $14,844 1107 5.22
FI-IILB B-t875 3133M8AY0 10/06/2000 03/23/2004 2 000 000 1 932 600 1,951 788 2 098 125 1 950 166 2 060 000 1 621 38 125 904 6 59
FNMA B~1748 31359MEN9 05/09/2000 03/15/2002 2 500 000 2 436 4a~ 2 484,550 2 532 813 2 481 487 2 525 781 2 863 7 031 165 6 92
FHLB B 1820 3133MBJ99 06/26/20(~,0 05/15/2002 1 000 000 I 0~3 687 l 001216 1 029,375 I 001 379 I 026,250 163 3 125 226 7 03
$1,000,500 $1,003,687 $1,001,216 $1,029,375 $1,001,379 $1,026,250 ($163) $3,125 226 ?0~
FI-liB B-1849 3133MSUR9 09/20/20(10 10/01/2003 75500~ 722,205 733,357 781 189 732455 768920 9~2 12,269 730 661
$755,0Q0 $722,205 $733,35? $781,189 $732,455 $768,920 $902 $12,269 730 6 61
FI-ILB B-1995 3133MFAZ1 05/31/2001 05/21/2002 2,0~0,000 1,997500 2000513 2020,281 2000,298 2 0~8 406 214 11875 232 399
S2,000,000 $1,997,500 $2,500,513 $2,520,281 S2 000,298 $3,008,406 $314 $11,875 232 3 99
~ B-1845 3133M8RF3 09,r~2~200~ 05/24~0~2 500000 492,555 497118 510156 496747 507813 371 2,344 235 657
T-NOTE B-1928 9128276P2 02/01/2001 11130/2002 2 000 000 2 031,531 2 020 048 2 069,375 2 021 483 2 053 750 -1 435 15 625 4:'5 4 70
$2,500,500 $2,524,586 $2,5t7',166 $2,579,531 $2,518,231 $2,561,563 ($1,064) $17,,968 330 5 64
Tuesday, Novend~r 27, 2001 Page 2 of 10
CITY OF DENTON
FHLB B-2137 3133MCUE3 08/01/2001 01/13/2003 1,500,000 I 500000 1,504,057 1,.549,526 1 504,057 1,532 182 0 17,344 469 5 12
FNMA B-2015 313559VQ3 06/14/2001 04/16/2002 4 000,000 3,874 880 3 919,449 3 947,200 3 907 182 3 918 400 12,267 28,799 197 3 83
FFCB B-2141 31331LHY7 08/31/2001 12/04/2002 1,500,000 1,.500000 1,516,131 I 547~538 1,516,131 1,530663 0 16,875 429 443
FNMA B-2008 3136FOMH2 06/19/2001 12/14/2004 5 621 000 5 624,513 5 628,248 5 728,658 5 628~332 5 679 474 -84 49 184 1170 5 13
FNMA B-2014 313589XM0 06/13/2001 05/31/2002 5 000 000 4,819 111 4 875,639 4 918,500 4 860,222 4 877,500 15 417 41,000 242 3 86
$'1~1~1,000 $1'1,94a,824. $1~,020,0~8 $1~'l~t,~ $'1~004,~8~ $'12,087,~7 $15,aaa $'107,0s8 614 4.4?
MONEY O-1633 10/01/1999 5000000 50110000 5000000 5000000 5 0~0 0~ 5 0~ 000 0 0 I 000
mLB R-1481 3133M6BN7 11/05/1998 11/05/2001 500000 500000 500000 50L250 500000 501,250 0 0 35 500
FHLMC R-2168 313397UM1 09/06/2001 03/'20/2002 2,500 000 2 455 042 2 460 806 2 471,500 2 455 042 2,455 042 5 764 16 458 170 3 40
FNMA R-1876 31359MEDI 10/06/2000 08/25/2003 925000 910113 915,200 972117 914770 958,820 430 13,297 693 653
~ R-1980 3133MEV~I9 05/23/20~1 11/23/20~4 2,210000 2,210,0~0 2.210000 2,247,294 2,210000 2,230719 0 16,575 1149 514
~ R-1963 3136FOGM8 04/25/20~1 0~/25/2003 1,500 000 1,500 0~ 1,500 000 1,502 700 1,500 000 1,501,50~ 0 1,200 571 5 10
$3,710,000 $3,710,~ $3,710,~ $3,7~,994 $3,710000 S3,732~,t9 $0 $17,7'/5 860 512
Tuesday, November 27, 2001 Page 3 of 10
CTI'Y OF DENTON
~ Rel~rt for Month Er. ding Selmm~ $0, 2001
FUND ISSUER ASSET CUSIP PURCHASE MATURITY PAR PRINCIPAL ENDING ENDING BEGINNING BEGINNING CHG TO CHG TO WAM yl~:l n
NO NO DA'I~ DAI~ VALUE BOOK MARKET BOOK MAR, K~-T BOOK MARKET DAYS %
FHLB B-2158 3133MDH29 08/31/2001 09/20/2004 4,000,000 4 000 000 4 000 000 4 107 500 4,096,779 4 165 529 -96 779 -58 029 1085 5 40
FHLB R-1920 3133MCT47 01/17/20~1 01/17/2006 3 0~0 000 3 0~0 0~0 3 000 0~ 3030938 3 0~0 000 3027188 0 3750 1569 600
~ R-2159 3133MDH29 08/31/20~1 09/20/2004 I 0~ 0~ 1 0~0 0~0 I 000 00~ I 026 875 1 024 195 I 041,382 24 195 14 507 1085 5 40
FI-II~ R-2127 313385NJI 07/27/2001 10/24/2001 5 0~0 000 4 956 983 4 988 883 4 991 500 4 974,383 4 976 0~ 14,500 15 500 23 3 5 l
FHLB R-1943 3133MgFE7 03/08/2001 08/15/2002 3 0~ 000 3049080 3029809 3090938 3032657 3070313 -2848 20625 318 480
FItI~ R-1942 3133MBIJKI 03/14/20~1 07/18~002 3 00~ 000 3 081 150 3 048 120 3 104 063 3 053 150 3 087 188 -5 030 16 875 290 4 77
FHI~ R-1883 3133MCJJ5 11/16/2000 11/15/2002 1 0~0~0 999 540 999 742 I 04l 563 999722 1 032 188 19 9,375 410 640
FItLB R-2172 3133MD6M0 09/10/2001 02/14/2003 5 000 000 5 087 500 5 101,286 5 167,361 5 087 500 5 087 500 13 786 79 86I 501 3 73
FH[MC R-19~6 3134A3RE8 01/19/2001 05/15/2002 4000000 4019880 4009,355 40750~ 4010608 4057500 1,253 17500 226 5 10
FI-ILMC R-1684 312902NF2 12/27/1999 12/27/20~4 2000000 2 000 00~ 2 00~ 0~ 2086958 2000000 2069552 0 17406 1183 700
FNMA R-1886 31364C4T2 11/09/2000 08/14/2002 3000000 3000000 3000000 3096045 3 0~0 00~ 3076515 0 19530 317 643
FNMA R-1613 31364GDY2 07/30/1999 10/29/2001 2 0~ 000 1999531 1999984 2003802 1999966 2 0~4 728 17 926 28 501
FNMA R-I848 3136GNG0 09/21/2000 01/02/2002 2500000 2462109 2492521 2516500 2490055 2518750 2466 -2,250 93 651
FNMA R-1801 31364KD~r7 06/30/2000 11/21/2001 1000000 10~0000 10~0~0 1005033 1000000 1005975 0 -942 51 625
FNMA R-1919 3 I364KJ92 01/23/2001 01/23/2006 3 0~ 000 3 0~0 0~) 3 000 0~ 3 075 938 3 000 000 3 045 000 0 30 938 1575 5 69
MONEY R 2125 06/29/2001 6 897 127 6 897 127 6 897 127 6 897 127 6 897 127 6 897 127 0 0 I 0 00
$45,397,127545,552,901 $45,566,826 $46,209,638 $45,569,363 $45,996,903 ($2,537) $212,734 511 511
FH~B O-1629 3133M6BN7 07130/1999 11/05/2001 500000 500000 500000 501250 500000 501,250 0 0 35 500
FHLB O-2018 3133M22D8 06/15/2001 01/21/2003 1360000 1387 132 1,382 139 1 408 025 I 383,552 1392300 -! 413 15,725 477 4 18
FHLMC 0-2010 312902HY8 06/19/2001 11/06/2002 1 000 000 1 010 090 I 015 783 1 011 453 1 016392 I 012 523 ~009 -1 070 401 5 72
Tue~lay, November 27, 2001 Page 4 of 10
CITY OF DENTON
Im~fme~ Repme for Mo~k Emfmg ~_i~r $~ 2001
~ ~ ~ ~ ~ ~ P~ P~ ~ ~G ~N~ ~m~ ~ ~ W~ ~n
FI~ O-1905 31364F.~7 01/08/2001 11/21/2001 2,500000 2,529~25 2,504,685 2,513,281 2,507,495 2,515 625 -2,811 -2,344 51 504
$5,360,000 $5,426,547 $5,402,607 $5,434,009 $5,407,439 $5,421,698 ($4,833) $12,31t 241 4.98
FHLE~ O-1844 3133M7QDI 09/20/2000 02/18/2004 ] 000 000 959,200 971 526 1,043,750 970,530 1,025,313 997 18,438 870 6 65
FHLB O-1967 3133M9FE7 04/30/2001 08/15/2002 1,500000 1,500000 1,500,000 1,545469 1,500,000 1,535156 0 10,313 318 599
FltLB 0-1971 3133MDSQ2 04/30/2001 02/07/2002 1000,0~ 10~0000 1000000 1008438 1000000 1006,250 0 2188 129 489
~ O-1907 3133MFAZI 05/31/2001 05/21/2002 1 0~0 00~ 998 750 1 000,251 I 010 135 1 000 144 1 004 197 107 5,938 232 3 99
FltLMC 0-163I 31~4A2KY3 07/30/1999 07/07/2003 50000~ 50000~ 5000~0 525 156 5000~0 518,28I 0 6875 644 60(I
FMC 0-2157 313397XI)8 08/31/2001 05/23/2002 2 000 000 1 952,300 I 957 880 1 968 600 1 952 480 I 952 400 5 400 16,200 234 3 34
FItLMC B-2012 3129231J37 06/28/20~l 06/28~004 1 000 000 I 000 938 1 000 857 I 004 476 I 00~ 883 1 002 888 -26 1,588 1001 5 04
$1,000,000 S1,000,938 $1,000,857 S1,004,476 $1,000,883 $1,002,888 ($26) $1,588 1001 5 04
FHLMC B-2147 312923U37 08/31/2001 06/28/2004 500,000 500000 504436 506674 504436 505,880 0 794 1001 506
FHLMC B-2148 312923U37 08/31/2001 06/28/2004 1.500000 1,500000 1,513,309 1520023 1513,309 1517641 0 2,382 1001 506
S1,500,000 $1,.500,000 S~,S13~00 S~,5~0,0~3 $t,S~3,30S $1,S~7A4~ $0 S~,_~__~ ~00~ 5 0S
FItLB B-1966 3133MCJJ5 04/30/2001 11115/2002 1 0~0 000 1,000 0~0 t 000 00~ 1041,563 1 00~ 000 1032188 0 9,375 410 637
Tuesday, November 27, 2001 Page 5 of 10
CITY OF DENTON
FUND ~ ~ ~ K~ ~ P~ ~ ~G ~ ~G~ ~N~ ~ ~ W~ ~
NO ~ ~ ~ V~UE ~ ~ ~ ~ ~ ~ ~ ~
$1,O00,0O0 $1,000,000 Sl,000,~00 $1,041,563 $1,OQO,00Q $1,032,188 $0 S9,375 410 6.37
FHLB B-1864 3133MBJ99 09/01/2000 05/15/2002 I 000,000 I 000 000 1 000 000 1,029.375 1 000 0~0 1 026,250 0 3 I25 226 7 24
FMC B-1937 313397TR2 03/08/2001 02/28/2002 2 500 000 2.386 826 2,452,448 2 475 000 2 442 938 2 459,250 9 510 15,750 150 4 79
FNMA B-1944 31364CD21 03/07/2001 04/10/2002 1,250 000 1,275 I88 1,262 113 1,276 767 1,264036 1,275 10l -1 923 1 666 t91 4 86
MONEY B-1749 05/25/2000 0 0 0 0 I 0 00
$4,750,000 $4,662,014 $4~,714,561 $4,781,142 $4,706,973 $4,760,601 $7,588 $20,541 142 4.22
FHLB B-1931 3133MCJJ5 02/0 t/2001 11/15/2002 500000 511492 507,210 520781 507745 516094 535 4688 410 501
FI-ILB B-1842 3133MAT74 08/14/2000 02J15/2002 20~0000 2001400 2000,347 2031,250 2000424 2029.375 -78 1875 137 668
FHLMC B-2 t49 312923U37 08/31/2001 06/28/2004 500000 500000 504436 506674 504436 505880 0 794 I001 506
$3,000,000 $3,012,892 $3,011,993 $3,058,705 $3,012,606 $3,051,349 ($613) $7,356 616 6 58
FHLB B-2005 3133MEYBI 06/01/2001 12/01/2004 7050000 7050000 7050000 7127109 7050000 7098469 0 28641 1157 513
FMC B-1977 313397NZ0 05/16/2001 11/08/2001 4000000 3925102 3,983,829 3989,200 3971062 3975,200 12767 14000 38 390
FNMA B-2155 313589QH9 08/31/200l 12/10/2001 I 000 000 987.375 991~50 995 100 987 500 990,900 3 750 4~00 70 4 56
FNMA B-1976 313589QUO 05/22/2001 12/21/2001 7 000 000 6 841.374 6 939 678 6 960 800 6 9t7 336 6 929.300 22~42 31 500 81 3 99
FNMA B 1990 3136FOJU7 05/15/2001 05/15/2006 10000000 9995000 9995.378 10 190625 9995,294 10 103 125 83 87500 1687 564
T-BILL B 2161 912795H63 08/I5/2001 10/18/2001 1 500 000 I 491 093 I 497 634 I 498 125 I 493 459 I 493 438 4 t75 4 688 17 3 36
$30,550,000 $30,289,945 $30,457,768 $30,760,959 $30,4'14,652 $30,590,432 $43,'1'17 $170,528 508 4.43
~ B-1992 3133MEYKI 05/29/2001 11/29/2004 1000000 1000000 1000000 1017188 1000000 1008750 0 8438 1155 509
FNMA R/2169 313589ZV8 09/06/2001 07/26/2002 1 000 000 969 808 972 145 900 100 969 808 969 808 2.337 10,291 298 3 49
Tuesday, November 27, 2001 P~ge 6 of 10
CITY OF DENTON
FHLB 1~1934 3133MCJJ5 02]08/2001 11/15/2002 3 000 000 3,064,740 3 041 060 3,124,688 3 044 109 3,096,563 -3 049 28 125 410 5 08
FHLB B-2151 3133MCJJ5 08/31/2001 11/15/2002 2,000,000 2 000 000 2,037,571 2 120 696 2,037,571 2 101 946 0 18,750 410 6 35
FNMA B-2156 313589XE8 08/30/2001 05/24/2002 2,500 000 2 439,554 2 446 799 2 460,500 2 440 007 2 440,250 6,792 20,250 235 3 36
FNMA B~2170 313589ZV8 09~o/2001 07/260-002 1,000,000 969,808 972,145 980100 969,808 969,808 2~337 10,291 298 349
FFCB B-2142 31331LHY7 08/31/2001 12/04/2002 1,000 000 1 000 000 1,010,754 1031692 1,010754 1020442 0 11,250 429 443
FHLMC B-1958 31331LFB9 04/10/2001 04/10/2006 3000000 3000000 3000000 3002813 3000000 3006563 0 -3750 1652 580
FNMA B-1914 313589PX5 01/08/2001 11/30/2001 1642000 1,570628 1628,864 1634940 1622,296 1628,371 6568 6568 60 503
$~,642,000 S5,b'70,628 Ss,639,~8 $5,669,444 S5,633,050 S5,655,376 $6,068 $14,068 714 5 09
FHLB B-1841 3133M2PY7 08/28/2000 12/24/2002 2,500000 2481,300 2490091 2610156 2489420 2,584,375 671 25781 449 667
FHLB B-1850 3133MSUR9 09/20/2000 10/01/2003 1,500 000 1 434 844 1 457 000 1 552 031 1,455,209 1,527 656 I 792 24,375 730 6 61
FHLB B 1913 3133MCGS8 01/11/2001 11/27/2001 5000000 5059650 5010.571 5031,250 5016,234 5035938 -5663 -4688 57 509
FH[~ B-1961 3133MSQB9 04/19/2001 09/15/2003 3000000 3008,250 3006707 3110625 3021513 3076,396 -14807 34~229 714 500
FHI. MC B-1884 3134AINV8 11/22/2000 02/26/2004 2,000000 1 995000 I 996,316 2 135000 1 996 188 2099,375 128 35625 878 639
FNMA B-1839 31364KSY7 08/31/2000 08/14/2003 4 000 000 4 000 625 4 000,396 4 066,250 4 000 4t3 4,062 500 -18 3 750 682 6 98
MONEY B-1750 05/25/2000 0 0 0 0 I 0 00
T-BILL B-2160 912795HS3 08/15/2001 10/18/2001 1,500,000 1 491 093 1,497,634 1 498 125 1,493 459 I 493 438 4,175 4 688 17 3 36
$19,S00,000 S10,4,70,762 $19,408,715 $20,003,438 $t9,472,436 $19,879,677 ($13,722} $'123,760 441 S01
Tuesday, Novendn~ 27, 2001 Page 7 of 10
CITY OF DENTON
~ I~d.lER ~ ¢~dP ~ lilkYl,ll~'~f P~ I~lNt~l~. ENDING F. NDII~ m:61N#lN6 I[lC-~lN#ll~ ~ TO
NO NO DA'IE DA'I~ V~.UE BOOK ~ BOOK ~ BOOt(
FHLB B-1987 3133MEZX2 05,25,2001 11,2512003 5,000,000 4996094 4996641 5045,313 4996,510 5031,250 130 14063 785 481
FHLMC B-1986 312923E35 05/25/2001 05/17,2006 3 000 000 2,989,219 2,993 810 3 013,304 2 993 630 3,011 639 180 1 665 1689 5 83
FNMA B-1985 3136FOKY7 05/16/2001 05116/2006 5 000 000 4 990 625 4 991,328 5,[77,500 4 991 172 4 950 000 156 227,500 1688 5 59
FNMA B-1989 3136FOKH4 05/16/2001 05/16/2003 5 000 000 4 996 875 4 997 461 5 012,500 4 997,33t 5,010,938 130 1 563 592 4 60
FItLB B-2146 3133MBIJQ8 08/31,2001 11/30/20~1 1,500000 i 500 0~0 1,534,325 1,545 106 I 534,325 l 546 513 0 -I 406 60 6 77
I~ILB R-2143 3133M6YY8 08/31,2001 06/28~002 1 000 000 1 0~ 000 1 009 030 I 029 030 I 009 030 1 022 780 0 6,250 270 5 13
FHI~ B-2144 3133M6YY8 08/31/2001 06/28~2002 5000~0 500000 504515 514515 504515 511,390 0 3 125 270 5 I3
FHLMC B-1387 3134A2KY3 07/07/1998 07/07,2003 1 0~0 0~0 I 0~0 0~ 1 000 000 1050,313 I 000 000 1036563 0 13750 644 600
FHI~ B-2138 3133MCUE3 08/0112001 01/13,2003 1 000 0~ 1 000 000 I 002 705 1 033 017 I 0~2 705 1 021,455 0 11 563 469 5 12
FNM~ B-2171 313589ZV8 09/06/20~1 07/26/20t)2 50000~ 484904 486073 49(1050 484904 4849~4 I 168 5 146 298 349
FHLB B-1834 3133M25C7 07/27,2000 01/30/20~)3 3 0~ 000 2911530 2953071 3110625 2950132 3075938 2939 34688 486 688
FHLB B-1836 3133MAQJI 07/19/2000 02/0t,2002 3,500 000 3 491.250 3 498 098 3,548 125 3 497 622 3,545,938 476 2 188 123 6 92
FHLB B-2152 3133M5W89 08/31/2001 10/07/2005 2110000 2.110000 2151862 2.214,503 2151,862 2,157797 0 56,706 1467 495
FNMA B-1916 313589QM8 01/11/2001 12/14,2001 2 000 000 1,910 133 1 980.267 1 989,800 1 972.267 1,981,200 8 0~0 8 600 74 5 04
FNMA B-2154 313589QH9 08/31,2001 12/10,2001 3000000 2962125 2973750 2985,300 2962500 2972700 11,250 12600 70 456
Tuesday, Novend~r 27, 2001 Page 8 of 10
CITY OF DENTON
MO~Y ~1751 05~ O O 0 0 I O~
S13~0,~$13~,~ S13~,~ $t3~ $13~ $~3,~ ~ $11~ 370
~ B-l~l 3133~1 05~9~1 11~9~ 675,~ 675~ 675,~ ~2 675~ ~ 0 5,695 1155 5~
T-B~ ~2162 91~79~3 ~115~1 10/1~1 ~ 4~,031 4~11 4~75 4~,~0 4~813 13~ 1~3 17 336
$~,~7~ $1,1~1 $1,~7~ $1,1~ $1,~7~ $~,1~719 $1~ ~ ~6 4~
'
~ B-I~9 3133M~ 05/1~1 11~7~1 4 ~ ~ 4,0532~ 4 015 459 4,025,~ 4 023 741 4 028,7~ 4~82 -3 750 57 3 97
~C ~2150 312923U37 0~31a~l ~Sa~ 1~ 1~ 1~13~ 1~0~ 1~13~ 1~17 ~1 0 2382 1~1 5~
m~ B-l~9 3133MCJJ5 ~01/2~1 11/15~2 1 ~ I 5~477 I 521 ~9 I~62~ 1~23~35 1 ~81 -1 ~ 14~3 410 501
~ B-1911 3133MBU~ 01/~a~l 11/~a~l 1 ~ ~ I 015,470 I ~2 ~3 1 ~7,188 1 ~89 1 ~8 125 -1 ~ -938 ~ 5 22
~CB ~l~S 31331~7 0S/ll~l 0~01a~2 3~ 30~3~ 3025103 3~12~ 3031379 3039375 4~76 1875 1~ 4~
~ ~2145 3133M6~8 08/31~1 ~8~2 5~,~ 5ffi~ 5~15 514j15 5~j15 511~ 0 3 125 270 5 13
~ ~19~ 3133~2 ~0~1 0~07~2 2,~ 2~ 2,~ 2 016375 2~ 2 012~ 0 4~75 129 489
~ ~1912 3133~Y3 01/17~1 I 1~0~2 2~ ~0~5 2 018~ 2 079~75 2 020~78 2,~,~ -1~ 19~75 415 5~8
~ ~1917 3133M~ 01~3~1 01~3~ 2,~ 2~ 2~ 2020625 2~ 2016875 0 3750 1575 578
Ta~y, Nov~ 27, ~l Pge 9 of 10
~ O1; :I)Ei'qTON
FUND ISSUER ASSET CUSIP PURCHASE MATURITY PAR PRSNCIPAL ENDING ENDING BEGINNENG BEGINNING CHG TO CHG TO WAM YIELD
NO NO DATE DATE VALUE BOOK MARKET BOOK MARKer BOOK MARKET DAYS %
FHLB B-2140 3133MCUE3 08/01/2001 01/13/2003 500000 500000 501 352 516509 501 352 510727 0 5781 469 5 12
$500,000 $500,000 $501,352 $516,509 $501,352 $510,727 $0 S5,78t 469 5 12
FHLB O-I969 3133MCJJ5 04/30/2001 11/15/2002 2500000 2500000 2500000 2603906 2500000 2580469 0 23438 410 638
FHLB 0-2006 3133MAVJ5 06/06/200I 02/25/2004 I 500 000 I 535 865 ! 531 652 I 530 000 I 532 751 I 529 063 -1 099 938 877 6 54
$4 000,000 $4,035,865 $4,031,652 $4,133,9Q6 $4,032,751 $4,109,531 ($1,099) $24,375 644 6 46
FI~LB O-1910 3133MBUQ8 01/09/200I 11/30/2001 500 000 507 735 50l 422 503 594 502 145 504 063 723 ~69 60 5 22
$500,000 $507,735 $501,422 $503,594 $502,145 S504,063 ($723) ($469) 60 5 22
FNMA S-2136 31359MJZ7 08/31/2001 06/25/2003 250 000 250 000 252 040 255 633 252 040 253 680 0 1 953 632 4 44
$250,000 S250 000 $252,040 $255,633 $252,040 $253 680 $0 $1,953 632 4 44
FHLB S-I996 3133MFAZI 05/31/2001 05/21/2002 1 000 000 998 750 I 000,256 1 010 140 I 000 149 I 004,203 107 5 938 232 3 99
$1,000,000 $998,750 $1,000,256 $1,010,140 $1 000,149 $1,004,203 $107 $5,938 232 3 99
GrandTotal S260,495,127 S259,446,797 $260,293,651 $264,486,697 S260,267,115 S262,920,652 S26,53651,566,045
Tuesday, November 27, 2001 Page I0 of 10
MONTHLY INVESTMENT REPORT
Period Ending September 31, 2001
% of Portfolio
Federal Agency Ice,Joe-Coupon $106,600,000 $106 182 243 $109 777 863 40 79% 348 5 45%
Federal Agency laacea-Dlsceunt 47,542,000 47 000 303 47 222 889 18 06% 129 4 08%
Federal Agency leaEaa-Caliebie 89,056 000 88 200 239 90 524 444 34 27% I 127 5 37%
Treaaur/Sacurkiea-D~ceunt 4,000000 3993691 3995000 I 53% 17 341%
Treasury Securkre~Coupon 2 090,000 2 020 048 2 069 375 0 79% 425 4 70%
TOTAL INVESTMENTS ~250~495~127 ~260~2931851 ~294r486t697 100 00% 555 5 05%
Policy Benchmark 650 2 32%
Portfolio Yield vs Polioy Benchmark-Difference $594,146
PORTFOLIO SUMMARY
~.~ Change From Change in Value
Face Value $289,995,127 29 5~0,000 (39 000 000) 0 0 $260,496,127
Book Value $289 753,786 29 483,196 (38 969 886) (9 486 670) 26 636 $260 293 661
Market Value $272 511 467 29 483 196 (39 074 011 ) (9 590 815} I 686 ~45 $264 486 697
Unreal!zed Galn/Loa8 $4 193,046
Change To Market Value ($8 024 770)
~ 8 79% ~ 24 ~% I 5 45%
In~flon Par Value Manet Value A~ ~n~.~al
T~n~ ~.~,~. ~. $~7e~6- $4389~ $41183~ 1938~
~ Flint S~ Back 8~,~0 888 295 77 238 811 057 11 ~ 07%
Bank One 1 024 0~ I 032 432 409 ~6 623 428 252 42%
~ ~fi~g F[npa _ Mon~ End F[~a~ [udgst Va~n~ % ~m~*
General Fuhd - ~21 $9~,171 $960 0~ ($~ 829) 9418%
In~t) E~c Fund 2~ 479 $3 927 978 4 171 000 (2~ 0~) 94 17%
~ Water Fund 86 023 $1 1 ~ 478 2 4~ 973 (1,3~ 497) 45 88%
Wast~ater Fund 38 691 $492 840 t 2~ 213 (755 373) 39 48%
Solid Waste Fund 17 559 221 456 3~ 500 (122 0~) 64 47%
~ Many ~flomi~ do not ex.ct an e~nomio ~ve~ for snorer 12 to 18 months Due to ~e sh~ of the
Soume Pub#c Investor October 5 2001 a~ and ~ Im~ndiog m~sion many have ~1~ on ~e federal government to u~ fls~l policy to
Volume 19 Number ~ 0 stimulate the ~omy Such a stimutus adds an add,offal element of un~in~ to the cu~nt ~nomy
T~ tlmiog and Im~ of ~ U S mill~ ms~n~ cma~s another un~dain~ io t~ ~nomy In addition the
~slblll~ mmaios ~r anoffier ~Hst a~ck At this ~lnt the e~nom[c debate Is f~ on whether the
e~nomy will e~er ~den~ a brief m~ssion foiled by a m~ve~ next year or sptml d~ In~ a
~ ~de ~slon
Key Rates Cash Ma~sts I Interest Rate Outlook
- _Se.pt 3.1 Year Aj[o. [ Nov Avg Ja.c Av~ A~r A_vg .
Federal Funds 3 50% 6 75% / 2 50% 2 50% 2 50%
T Bill 3 Month Yield - 2 30% 2 40% 2 6o%
T Sill 91 Day Yield 2 36% 6 01%
T Bill 52 Wk Yield 2 49% 5 88%
This Report Is In, full compliance with the Investnmnt strategy as established fur the Investment Portfolio and the Public Funds
Aaalat~t City Manager Oireotor of Fiscal Opera#one
Fia;al & Mun~ipal Sart~ea
Prepared By Lea Ann Bunselme~'r-~ Ceah& Debt Administrator
MONTHLY INVESTMENT REPORT
Period Ending August 3t, 2001
% of Portfolio
INVES77~fENTS Par Value Book Value Market Value (Bcok Value~ WAM/Da~(s Yield
Federal Agency Issues Coupon $105 400 000 $105 622 339 $107 446 517 39 16% 356 5 57%
Federal Agency Issues D~scount 42 642 000 41 968 573 42 073 272 15 56% 147 4 15%
Federal Agency Issues Callable 100 556 000 100 761 705 101 558 302 37 35% I 170 5 44%
Money Market 15 397 127 15 397 127 15 397 127 5 71% I 3 64%
Treasury Secuntles D~scount 4 000 000 3 982 558 3 982 500 1 48% 47 3 41%
Treasury Securities Coupon 2 000 000 2 021 483 2 053 750 0 75% 455 4 70%
TOTAL INVESTMENTS $269~9951127 $269~753~785 $272~511~467 10000% 603 5t5%
Policy Benchmark 550 3 44%
Portfolio Yield vs Pohcy Benchmark Drfference $386,003
PORTFOLIO SUMMARY
RECONCILIATION Change From Change in Value
Be. glunlng~Values Pumbese8 Sales/Me,rites. Purch/Maturitles of Seourttles Ending[ Values
Face Value $268 495 127 54 610,000 (53 110,000) 0 0 $269,995 127
Book Value $268 168 092 54 427 603 (53 142,251) I 285 352 300 341 $269 753 785
Market Value $270 674 455 54 427,603 (53 379,963) I 047 640 789,373 $272,511 467
Unrealized Gain/Loss $2 757 682
Change To Market Value $1 837 013
00-30 Da~s 31 180 Days 181-366 Days 361-720 Days 721 & Over To. tel
MA TuRn'~ TIME FRAME 8 85% 24 68% 15 09% 18 28% 33 09% 100 00%
Institu. tion Par Value. Market V~alue Av~ Bank BalL_ Vanance . Peme.nta~e
COLLATERAL REVIEW Texas Bank $8 461,384 $8,628,149 $4 634 570 $3 993 579 186 17%
Fimt State Bank 895 000 888 659 76 065 810 594 1165 66%
Bank One 1 024 000 1,039 525 298 478 741 047 348 28%
TOTAL EARNINGS O. pereting..Funds ~ Month End FY-To-Date Bud.~et Vabance % E~rced
FISCAL YEAR TO DATE General Fund $48 726 $7"27 385 $960 000 ($232 615) 75 77%
(does nd include Debt S~lce Interest) Electdc Fund 293 575 $3 673 399 4 171 000 (497 601) 88 07%
Water Fund 86 865 $1 038 453 2 450 973 (1 412 520) 42 37%
Wastewater Fund 30 659 $454 149 1 248 213 (794 064) 36 38%
Solid Waste Fund 10 100 203 897 343 500 (139 603) 59 36%
MARKET UPDATE
Source Publlclnvestor September72001 Asexpected the Fed lowered tba Fed funds rats to 3 5 pement on Angust 21 This was the ceventh rets
Volume 19 Number 9 cut in the current easing cycle Many Fed watchers think that the Fed is near the end of its easing cycle, with
morn to cut rates by another 25 to 50 basis points
The new concern ~s that the Fed rate cuts wilt do liltle to strengthen growth Typically, rate cuts have a nine to
twelve month lag before they boost the economy Although the near term outlook Is uncertain many
economists expect the economy to Improve oody next year The Iooding Indicators Index has dcen for the
fourth consecutive month In addition new housing alerts have dsen five percent over the last four months
Key Rates Cash Market8 Interest Rate OuUook
Aujg 31 .- Year Ago Oct .Av.g Dec Avg. Mar Avg.
Federal Funds 3 63% 6 50% 3 50% 3 50% 3 50%
T Bill 3 Month Yield 3 40% 3 40% 3 50%
T B~I191 Day Yield 3 35% 6 14%
T Bill 52 Wk Yield 3 41% 6 00%
This Report is in full oomphance wdh the investment strategy as established for the Investment Portfoho and the Public Funds
Assis~l~t Ctty Manager Director of Fiscal Operations
F~scal & Municipal Services
Cash & Debt Administrator
MONTHLY INVESTMENT REPORT
Period Ending July 31, 200~
~ Par Va. lu a Book Value Market Value (Book Value} WAM/Days Yield
Federal Agency Issues-Coupon $10g gOO 000 $110 164 805 $111 887 074 41 08% 371 5 58%
Federal Agency Iseuaa,Dlacourlt 38,142,000 37,443 437 37 531 260 13 96% 164 4 25%
Federal Agency Issues-Callable 107 558,000 107 840 005 108 307 119 40 14% I 236 5 48%
Money Market 10,897 127 10 897 127 10 887 127 4 08% 1 3 8t %
Tmaaur/Secudtiesl, Coupon 2 000 000 2 022 918 2 051 875 0 78% 486 4 70%
TOTAL INVESTMENTS ~26814981127 $268~168~082 $270~674~458 100 00% 887 5 28%
Policy Benchmark 560 3 55%
Portfolio Yield vs Policy Benchmark Difference $387,148
PORTFOLIO EUMMARY
RECONCILIATION Change From Change in Value
B_eill~l_.nll va~es _ PurCh_alles Salea/Matudt~ Purch/Matunse$ of 8.ecu ~le_a En_,.dl_n]~alu ~es
Face Value $277 452,110 9 000 000 (17 958 983) 0 0 $268 495 127
Book Value $277 213 437 8 956 983 (17 934 643) (8 977 660) (87 688) $268 168 092
Market Value $278 688,808 8,958 983 (17 940 408) (8 983 424) 989 072 $270 674 455
Unrealized Gain/Loss $2 506 383
Change To Market Value ($8 014 352)
The decrease In pottfolto balance I$ due to a debt service payment and
expend~ures for the Water Treatment Plant
00-80 D..ay~_. 31 18_0 Da.~(s 181 360_DCYa 3.6.1 720 Days 7~21 &O~er _ To.ts_l -
J~-]/.~l~...~ 5 73% 21 10% 16 11% 19 69% 37 37% 100 00%
.. I_n.st~utl~ .. Par Value M~arket Value . A_vii Bank Bal Variance . .Pe..rcentaii.e-
~ Texas Bank $1~ 8~ 002 $13 121 834 $4 440,747 $8 681 087 295 49%
First State Bank 895,000 873 744 69 959 803 785 1248 94%
Bank One 1 024 000 1 027 402 244 698 782 704 419 87%
O~eretlnii Funds Month End FY To Data Budget Variance % Earned
Gen~ral""~und~ - $~3899 $678689 $960000" ($281 341) "7069%
(doe~ not include Debt ~efldCelntereat) Elactrio Fund 282376 $3379824 4 171 000 (791 176) 81 03%
Water Fund 87 522 $951 588 2 450 973 (1 499 385) 38 82%
Wedtawatar Fund 30 726 $423 490 1 248 213 (824 723) 33 93%
Solid Waste Fund 9 920 193 797 343 500 (149 703) 56 42%
~r August 3 2001 Market padlolpants are flearly certain that the Federal Reserve Board will cut rates by 25 basis points
Volume 10 Number 8 to 3 5 at its next meeting on August 21 This would be the seventh rots cut in an easing cycle in which the
Fed has cut mtas by 300 basic pclnts It i$ possible that this will be the final rate cut unless the economy
does not resever In the fourth quarter Fed watshera anticipate that the Fad will chlff Its policy to a tightening
bias during the first quader of next year
On the positive side, housing activity ia strong and the purchasing management index nose Other factors
that will ctmngthan the e~onomy in the coming months include aclld consumer demand the recent
federal tax rebate and the lagged effect of the previous Fed rata cuts Economists generally anticipate
that the recovew will be gradual
Key Ratsa Cash Markets Interest Rate Outlook
Jul 2.7 Yea_r Aiio Sap A_vii Nov Avii . _Feb Avg.
Fed"ami'~;u n~ 3 78% 6 38% 3 50% 3 50% 3 80%
T Bill 3 Month Yield - 3 40% 3 40% 3 50%
T Bill 91 Cay Yield 3 48% 6 01%
T Bill 52 Wk Y~eld 3 57% 6 00%
This Report is in full oompllanoe with the investment strategy as eBtabllshed for the Investment Portfolio and the Public Funds
Investmerjt Act (Chap'er 2256 023)~r ,.~.~.,,~[ ~,~~
~.~.ed/~y Kathy DuBose / Revlsw~rEy 'Diana G Ort~
Asslat~t City Manager
Cash & Debt Administrator ~
MONTHLY iNVESTMENT REPORT
Period Ending June 30, 200'/
% ol Portfolio
Federal Agency Issues Callable 109 556 000 109 671 032 109 705 613 39 56% 1 260 5 48%
Policy Benchmark 550 3 55%
PORTFOLIO SUMMARY
RECONCILIATION Change From Changein Value
Be~inning Values Purchases Sales/Mat~urrtes PurchlMatudtles of Securities Endln9 Values
Face Value $241 587 000 80 885 110 (45 000 000) 0 0 $277 452 110
Book Value $241 269 688 80 715 014 (44 996 990) 35 718 024 225 720 $277 213 437
Market Value $243 180 307 80 715 014 (45 004 219) 35 710 795 (202 295) $278,688 807
Unrealized Gain/Loss $1 475 369
Change To Market Value $35 508 500
The increase in portfolio balance ia due to receipt of
Certificates of Obligation and Genera/Obligation bon~ and pro~eed$ from the Spencer Plant Sale
00 30 Days 31 180 Days 181-360 Days 361 720 Da~/$ 721 & Over Total
MATURITY TIMF~ FRAME § 24%.. 18 43% 15 59% 18 87% 38 87% 100 00%
Institution Par Value Market Value AvA Bank Bal Variance Percentage
~ Texas Bank $8 9~8 304 $9 070 586 $4 901 396 $4 174 170 185 16%
F~rst State Bank 895 000 869 814 68 429 001 385 1271 12%
Bank One 510 000 520 968 262 401 258 567 198 54%
~ General Fund $44 093 $624 960 $960 000 ($335 040) 65 10%
Water Fund 136 876 $864 060 2 450 073 (1 586 907) 35 25%
Key Rates Cash Markets ~ Interest Rate Outlook
Jun 22 Year AJ~o [ Au~ AvA Oct AvA Jan Av.~
Federal Funds 3 75% 7 00% ~ 3 50% 3 50% 3 60%
T Bill 3 Month Yield ~ 3 40% 3 40% 3 80%
This Report Is in full comphance w~th the investment strategy as established for the Investment Portfolio and the Public Funds
~'~ Reviewed By D~ana G Ortiz
~.~wed/~y Kathy DuBose
,slst~tC,tyManager ~.~~~ DlrectorofFIscalOperat,ons
Ftscal& Municipal Services
MONTHLY INVESTMENT REPORT
Period Ending May 3f, 200'/
% of For{folio
INVESTMENT~ Par Value Book Value Market Value (,Book Value.~ WAMIDays Y~eld
Federal Agency Issues-Coupon $117040000 $117355892 $118084131 4864% 435 573%
Federal Agency Issues-Discount 32 142 000 31 516 460 31 590 910 13 06% 161 4 60%
Federal Agency lesue~-Caltable 75 885 000 75 871 747 76 061 517 31 45% I 415 5 64%
Money Market 14 500 000 14 500 000 14 500 000 6 01% 1 4 20%
Treasu~ Securities Coupon 2 000 000 2 025 789 2 043 750 0 84% 547 4 70%
TOTAL INVESTMENT8 $241~567~000 $241~26g~688 ~243~180~307 10000% 882 546%
Pohcy Benchmark 550 3 73%
Portfolio Yield vs Policy Benchmark Difference $348 2t9
PORTFOLIO SUMMARY
R~CONCILI,~TION Change From Change ~n Value
B · ~lr~nill.~ Values Purchaees Sales/Meturlles Purch/MaturlUes of Securities Endln~ Values
Face Value $196 642,000 125 885 000 (80 980 000) 0 0 $241 567 000
Book Value $196 809,436 125 708 959 (81 004 940) 44 701 019 (240 765) $241 269 689
Market Value $188 551 425 125 705 959 (81 059 587) 44 646 372 (27 490) $243 180 307
Unrealized Gain/Loss $1 910 619
Change To Market Value $44 618 882
The increase fo portfolio balance was due to reoelpt of approxlmafoly $50 m/Ilion In
Ut#lty Revenue bonds
00 30 Days 31 180 Da~/s 181 360 Days 361 720 Days 721 & Over Total
~ 7 66% 17 59% 21 07% 18 63% 35 05% 100 00%
Insfltutlo.n Par Value Market Value AV~ Bank Bal Variance Percentage
~ Texas Bank $8 32t 723 $8 425 754 $4 630 877 $3 785 877 18t 59%
First State Bank 895 000 863 726 64 226 799 500 1344 82%
Bank One 510 000 520 344 131 169 389 175 396 70%
TOT,~L EARNIN~ O~¢eratln~ Funds Month End FY To Date Budget Vanance % Earned
~ General Fund $57 432 $580 897 $960 000 ($379 133) 60 51%
(does not Include Debl Service Interest) Electric Fund 384 966 $2 665 296 4 171 000 (1 507 704) 63 85%
Water Fund 89 242 $727 t 90 2 450 973 (1 723 783) 29 67%
Wastewater Fund 31 156 $326 205 1 245 213 (922 005) 26 13%
Solid Waste Fund 6 589 173 957 343 500 (169 543) 50 64%
Source Public Investdr June 1 2001 At Its most recent meeting the Federal Reserve Open Market Commdtee made another 50 basis point cut
Volume 19 Number 6 In the Fed funds rate Thus far the Fed has cut rates by 250 basis points ~n an attempt to avert a recession
The Fed funds rate I$ now at the lowest level in seven years The Fed futures market suggests that the Fed
will cut rates 25 baals points at Its June meedng and may be near the end of ~ts easing cycle Despite the
dramatic series of rate cuts Inflation indexes remain Iow
Many economists anticipate a slow recovery beginning at the end of this year and conhnuing threugi~ 2002
Key Rates Dash Markets Interest Rate Outlook
May 18 Year A~.O Jul Avl~ Sa~o Avg Dec Av~
Federal Funds 4 13% 6 50% 3 70% 3 70% 3 70%
T Bill 3 Mnth Yield 3 50% 3 50% 3 80%
T Bill 91 Day Yield 3 63% 5 80%
T Bill 52 Wk Yield 4 24% 5 84%
Thts Report is in full compliance with the investment strategy as established for the Investment Portfoho and/t~e Public Funds
Investment Act (Chapter 2256 023) /) ~' I ~ /~ ,,~
·~Re wed y Kathy DuBoae / ~Revlewed By 'Diana O Ortlz
Asslstd~t City Manager j~ ~ ~ ,~ Director of Fiscal Operations
Prepared By Lee Ann Bunse~meyer ~_~
Cash & Debt Administrator
MONTHLY INVESTMENT REPORT
Period Ending April 30, 2001
· % of Podfolio
INVESTMENTS Par Value Book Value Market Value ~Book Value~ WAMtDa~VS Yield
Federal Agency Issues Coupon $114 540 000 $115 134 520 $116 574 639 58 50% 464 5 92%
Federal Agency Issues Discount 29 642 000 29 119 515 29 186 013 14 80% 133 5 39%
Federal Agency Issues Callable 37 960 000 38 008 704 38 240 677 10 31% 1 234 6 18%
Money Market 12 500 000 12 500 000 12 800 000 6 3fi% I 4 69%
Treasury Securities Coupon 2 000 000 2 046 606 2 060 006 1 04% 578 4 70%
TOTAL INVESTMENTS $196~642r000 $196~8091438 $198~561 ~426 10000% 535 580%
Pohcy Benchmark 860 3 98%
Portfolio Yield vs Policy Benchmark D~fference $298,027
PORTFOLIO SUMMARY
~ Change From Change In Value
Beglnnlrt~ Values Purchases Sales/Motudtes Pur~h/Moturi{les of 5ecurlUes Endin9 Values
Face Value $203 582 000 51 420 000 (58 360 000) 0 0 $196 642 000
Book Value $203 268 181 51 428 250 (58 298 122) (5 889 872) 411 125 $196,800,438
Market Value $205 253 306 51 428 2fi0 (58 598 404) (7 167 104) 475 184 $198,561 426
Unrealized Gain/Loss $1 751 991
Change To Market Value ($6 591 970)
The decrease in portiOl~O balance was due to securities which were ca#ed at month end
00-30_ Days 31 180 Days 181 360 Days 361 720 Da.va 721 & Over Total
~ 13 22% 11 70% 24 35% 21 87% 28 86% 100 00~
Institution Par Value . Marke~t Valu_e Av~ Sank Bal Variance Pementai[e
~ Texas Bank $5 529 449 $8 646,352 $5 1 fi3 730 $482 622 109 38%
First State Bank 895 000 860 178 59 069 801 109 1456 22%
Bank One 510 000 517 159 142 982 374 177 361 70%
~ O~eratln~ Funds Month End FY TO Date BudJ~et Variance % Earn_ed
~ General Fund $101 296 $523 435 $960 000 ($438,565) 54 52%
(does not include Debt Sen, ice Interest) Electdc Fund 303 821 $2 278 330 4 171 000 (1 892,670) 54 62%
Water Fund 88 765 $637 948 2 450 973 (1 813 025) 26 03%
Wastawatar Fund 21 073 $295 052 1 248 213 (953 161 ) 23 64%
Solid Waste Fund 1 g 995 167 368 343 500 (176 132) 48 72%
~ The Federal Reserve surprised financial markets last month by cutting the fed funds rate by 50 bas~s points
Source Public Inveslor May 4 2001 between meetings Th~s bnngs the total rate cut to 200 basis points since the beginning of the year The
The Fed has been concerned that declining profits will cause businesses to slash ~nvestment spending In fact
economy will worsen or return to a path of faster growth
Many economists behave that the Fed will continue to cut rates throughout the remainder of the year
Key Rates Cash Markets Interest Rate Outlook
April 27 Year Ago Jun Av~ Au~t Av~ Nov AvJ~
Federal Funds 4 44% 6 25% 4 20% 4 00% 4 00%
T Bill 3 Mnth Yield 3 fi0% 3 60% 3 70%
T Bill 91 Day Yield 3 fi6% 5 62%
T Bill 52 Wk Yield 4 24% 5 84%
This Report is In full compliance with the investment strategy as established for the Investment Portfolio and the Public Funds
InvestmentAct(Chapter2256023).~.~ ~~ (~
Fiscal & Municipal Services Dtractor of Fiscal Operations
Prepared By Lee Ann Bunaelmeye~ - Cash & Debt Administrator
28
MONTHLY INVESTMENT REPORT
Period Ending March 31, 2001
% of Portfolio
INV~.~TMI;NT~ Par..Value Book Value Market Value [Book Value~ WAM/Da~vs Yield
Federal Agency issues Coupon $119,040 000 $119,364,641 $120 970 664 58 72% 491 5 99%
Federal Agency Issues Discount 32 932 000 32 273 960 32 325 159 15 88% 151 5 51%
Federal Agency issues Callable 46 110 000 46 091 449 46 385 977 22 68% 945 6 06%
Money Market 3 500,000 3 500 000 3 500 000 I 72% I 5 30%
Treasury Securities,Coupon 2 000 000 2 048 131 2 062 596 1 01% 611 4 70%
TOTAL INVESTMENTS $203~5821000 $2031268~181 ~205~2531396 10000% 530 591%
Policy Benchmark 550 4 43%
Portfolio Yield vs Policy Benchmark Difference $250,406
PORTFOLIO EUMMARY
RIECONCILI~ TI~N Change From Change in Value
.Be.qin nl.n~l val.~ues PurChaSe_.e SaleslMaiurltse PurchlMalurltles of Securities Ending Values
Face Value $207,453,000 47 050,000 (51 821 000) 0 0 $203 582 000
Book Value $207 017 826 47 761 277 (51 742 954) (3 981 678) 232 033 $203 268 181
Market Value $208962311 47761277 (51910991) (4149715) 440799 $205253396
Unrealized Gain/Loss $1 985 214
Change To Market Value ($3 708 915)
00 30 Da~.s .31 180 D..a~s 181 360 Da~(s 361 720 Days 721 & Over Total
~ 5 30% 15 72% 26 18% 26 89% 25 01% 100 00%
Institution . ~ Par Va~e Market Value Avg Bank Bal Variance Percen~g.e
~ Texas Bank $5 634 044 $5 743 030 $4 146 307 $1 596 633 138 51%
Fimt Stets Bank 895 000 879 319 53 367 825 952 1647 68%
Bank One 510,000 520 074 178 948 341 125 290 63%
~ . O. pe~tlng F.u. nds ~ Month E_,nd FY T_o Date B~d;[et Variance ~ Earned
~ General Fund $91 632 $422 139 $960 000 ($537 861) 43 97%
(d~es not Include Debt Sef~lce Ioteresl) Electric Fund 322 620 $1 974 509 4 171 000 (2 106 491) 47 34%
Water Fund 83 995 $549 183 2 450 973 (1 901 790) 22 41%
Wastewator Fund 23 045 $273,979 1 248 213 (974 234) 21 95%
Solid Waste Fund 24 626 147 373 343 500 (196 127) 42 90%
Source Public tnvestar March 2 2001 Acting to avert a recession the Federal Reserve decided to cut rates by 50 basis points In its most recent
Volume 19 Number 3 meeting on March 20 In the past three months the Fed has cut rates by 150 basis points
In recent weeks the volatility in the stock market has had an especially strong effect on the bond market
Stock market participants hoped that the Fed would cut rates by 75 basis points or more After the Fed
action the sto~k rcarket dropped and short term Treasury prices rose as equity Investors made a
"flight to quality "The Fed s next rceeflng Is not unhl May 15 Many Fed watehars expect that the Fed
will take action again between meetings and cut rates by 25 basis points Some economists even
predk~t that the Fed wilt lower the Fed funds rate by 100 bas~s points over the next few months
Key Rates Cash Markets Interest Rata Outlook
_Mar 26 Year Ago Ma~( Av~ Jul AvJ~ Oct Av~
Federal F~n~s 4 75% 5 00% 4 80% 4 50% 4 30%
T Bill 3 Mnth Yield - 4 70% 4 60% 4 40%
T Bill 91 Day Yield 4 20% 5 72%
T Bill 52 Wk Yield 4 24% 5 84%
This Report is In f~ll compliance with the Investment strategy as established for the Investment Portfolio and the Public Funds
· Reviewed By Diana G OrSz
AsslstaffRICIty Manager Director of Fiscal Operations
Fiscal & Municipal Sen/ices
Prepared By Lee Ann Bunselmey Cash & Debt Administrator
MONTHLY INVESTMENT REPORT
Period Ending February 26, 2001
% of Portfolio
INVESTMENTS Par Value Book Value Market Value (Bcok Value~ WAM/Days Yield
Federal Agency Issues Coupon $124 230 000 $124 268 201 $125 781 429 60 03% 502 6 16%
Federal Agency Issues D~scount 24 432 000 23 990 751 24 033 544 11 59% 124 5 97%
Federal/~gency Issues Callable 49 291 000 49 209 307 49 591 617 23 77% 877 6 39%
Money Market 7 500 000 7 500 000 7 500 000 3 62% 1 5 57%
Treasury Secunt~es Coupon 2 000 000 2 049 567 2 055 721 0 99% 639 4 70%
TOTAL INVESTMENTS $207~453~000 $207~017~826 $208r962~311 100 00% 531 6 16%
Policy Benchmark 550 4 89%
Pod~fOllO Y~eld vs Fohcy Benchmark D~ftarence $219,261
PORTFOLIO SUMMARY
RECONCILIATION Change From Change in Valce
eeg.~nnlng Values Purchales Ssle~/Meturkaa. PurchlMeturkies of Secu~es Endln~ Values
Face Value $211 953 000 30 000 000 (34 500,000) 0 0 $207 453 000
Bcuk Valce $211341581 30123791 (34501,559) (4377768) 54013 $207017826
Market Value $212 842 243 30 123 791 (34 509 454) (4 385 664) 505 732 $208 962 311
Unrealized Gain/Loss $1 944 485
Change To Market Value ($3 879 931 )
A decrease in portfolio balance is due to the debt se~e payment of tax supported debt
00 30 Da~s 31 180 Days 181-360 Days 361 720 Days 721 & Over Total
MATURITY TIME FRAME 8 92% 15 08% 24 03% 25 10% 26 87% 100 00%
Institution Par Value Market Value Avg. Bank Bal Vanance Percentage
COLLATERAL REVIEW Texas Bank $5 744 674 $5 828 725 $3 513 553 $2 315 172 165 89%
Rrst State Bank 895 00O 874 126 288 936 585 190 302 53%
Bank One 510 000 518 073 213 108 304 965 243 10%
TOTAL EARNINGS Operahng Funds Month End FY To-Date Budget Vanance % Earned
FISCAL YEAR TO DATE General Fund $74 772 $330 507 $960 000 ($629,493) 34 43%
Etsofnc Fund 307 825 $1 851 889 4 171 000 (2 519 111) 39 60%
Water Fund 85 105 $465 188 2 450 973 (1 985 785) 18 98%
Wastewater Fund 39 020 $250 934 1 248 213 (997 279) 20 10%
Sohd Waste Fund 26 101 122 747 343 500 (220 753) 35 73%
MARKET UPDATE After two dramaac 50 bas~s point cuts in January the Federal Reserve is expected to cut rates at a more
Source Public Investor March 2 2001 gradual pace ~n future msetmgs In recent testimony before Congress Federa~ Reserve Chairman Alan
Volume 19 Number 3 Greenspan desc, nbed the recent rata cuts as "front loaded ' suggesting that the aggressive Fed move w~ll be
followed by more gradual rata cuta Fed watchers expact the Fed to cut ratas by 75 basis points over the next
several months with a 25 basis point cut on March 20 and a 25 to 50 basis paint cut on May 15 Generally
the Fed prefers to keep the Fed funds rate 200 to 300 basis points above the cure CPi inflation rate Currently
the core CPI ~s at 2 6% percent while the Fed funds rate is 5 5 percent The Fed is expected to cut rates
further to counteract very tight bank ler~ling standards wh;ch are at the t~ghtest levels in over a decade
Feb 23 Year Ago A~r Avg Jun Avg Sap Avg
This Report ;sm full coraphance w~th the rnvestment strategy as estabhshed for the Investraent Portfolio and the Public Funds
Investment Act (Chapter 2256 023)~,~ ~ ~~~~
·......_ ~.v' B KathyDuBose ~ /~ /~} ~/.~_./~ /~l DirectorofF,scelOperet,ons
~nt~,tyManager / -~'~- Reviewed~y DiaceG (~rt,z -
Fiscal & Municipal BePwces
Prepared By Lee Ann Bunselmeyer ~ Cash & Debt Adramlstrator
MONTHLY INVESTMENT REPORT
Period Ending January 31, 2001
~ Par Valu. e Book Value Market Value ~Book Value~ WAMIDs.VS Yield
Federal Agency issues Coupon $122 730 000 $122 706,133 $123 887,039 58 06% 522 6 26%
Federal Agency Issues D[s~ount 22 432 000 21 927 767 21 954 787 10 38% 150 6 07%
Federal Agency lasues Callable 53,791 000 83 708 955 53 999 224 25 41% 884 8 43%
Treasury Securities. Coupon 4,500 000 4 499 726 4 801 183 2 13% 14 6 36%
Portfolio Yield vs Poll~y Benchmark Difference $197,823
PORTFOLIO SUMMARY
~ I Change From Change in Value
8ag~nld~ Velu. e~ Purch@ses . .3alaS/M~atu~l. ea Purch/Malud~ies of Securities Ending Values
Face Value $203,741 000 65,892,000 (57 880,000) 0 0 $211 953 000
Book Value $202 886,948 68,739,893 (87,711,803) 8 028 030 426 805 $211 341 581
Market Value , $203 738,266 68,739,893 (57 732 118) 8 007 775 I 096 213 $212 842 243
Unrealized Gain/Loss $1 500 662
Change To Market Value $9 103 988
0.0 30 Da~/s_ 31 180. Da;(s. 181 360 Days 36_1 720 Days 721 & Over Total
~ 11 09% 13 23% 21 16% 22 45% 30 07% 100 00%
institution Par Value Market Value Av~ Bank Sal Variance Percentag. e
~ Texa~a"~n"k" --" $~"~37,43~' ~ $5 g"~ 5 7~)1 $4 36~"~47 $1 5"~3 704 135 82%
(includes $100 000 FDIC) FImt State Bank 896 000 879 396 297 744 581 852 295 35%
Bank One 510,000 518 098 249 898 268 200 207 32%
~T~, Oj[:)erafln.._~u~ds M.onth End. . FY .To Date Budget V.arlance ~ Earned
~ General Fund $76,208 $255 735 $960 000 ($704 265) 26 64%
Electrld Fund 328 609 $1 344 064 4 171 000 (2 826,936) 32 22%
Water Fund 77 485 $380 982 2 450 973 (2 070 891) 15 51%
Wastewater Fund 44,618 $211 914 1 243,213 (1 036 299) 1698%
Solid Waste Fund 22 646 $96 646 343 500 (246 884) 28 14%
J~ In a dramatic shier In policy the Federal Reserve reduced the Fed funds rate by 100 basis points last month to
Volume 19 Nambar 2 basis points before Its regular meeting the Fed decided to cut rates by another 50 basis points at its most
expect the Fed to cut the Fed funds rate to five pement by the end of summer The next scheduled meeting ia
Mamh 20
Several economi~ reports due out in Februa~/may add more evidence that the wodd's largest economy is
ending ten conse~Btlve years of growth GDP Is estimatad to have grawn at a 2% pace in the fourth quarter
compared to an 8% rate in the previous year Consumer confidence In Janua~/probably dropped to Ihs lowest
level since October 1998
Key Re/es Cash Markets Interest Rate Outlook
Jan 26~. Y. ear A~o Mar Avg ~ Ma.¥ Avg Au~ Av~
Federal Funds 6 78% 5 63% 5 80% 5 30% 4 90%
T Bill 3 Mnth Yield - 4 9O% 4 80% 4 70%
T BIll 91 Day Yield B 09% 6 39%
T BIll 62 Wk Yield 8 71% 5 85%
This Report ts m full compliance with the Investment strategy as established for the Investment Portfolio and the Public Funds
Asslata~t City Manager Director of Fiscal Operations
Fi~cel & Munlclpal Servlces ~ ~
Prepared By Lee Ann Bunselm
Cash & Debt Administrator
MONTHLY iNVESTMENT REPORT
Period Ending December 31, 2000
% of Porlfoho
~NVESTMENTS Par Value Book Value Market Value (Book Value) WAMIDa~vs Y~eld
Federal Agency Issues Coupon $115 480 000 $115 083 311 $115 752 732 56 72% 523 6 48%
Federal Agency Issues D~scount 17 290 000 16 997 609 17 007 822 8 38% 96 6 58%
Federal Agency Issues Callable 55 971 000 55 809 444 55,979 321 27 51% 651 6 65%
Money Market 10 500 000 10 500 000 10 500,000 5 18% I 6 38%
Treasury Securities Coupon 4 500 000 4 496 583 4 498 381 2 22% 45 6 35%
TOTAL INVESTMENTS $203~741~000 $202~886~946 $203~738~255 100 00% 485 6 53%
Pohcy Benchmark 550 5 90%
Portfolio Yield vs Policy Benchmark D~fference $106,726
PORTFOLIO SUMMARY
RECONCILIATION Change From Change in Value
Beginning Values Purchases Sales/Meturltes Purch/Matunt~es of Securities End~n~ Values
Face Value $209 241 000 24 000 000 (29 500 000) 0 0 $203 741 000
Book Value $208 276 839 23 966 033 (29 478 067) (5 512 034) 122 141 $202 886 946
Market Value $208 249 866 23 966 033 (29 484 530) (5 518 497) 1 006 886 $203 738 255
Unrealized Gain/Loss $851 309
Change TO Market Value ($4 511 611 )
Reduction in poitfoflo balance due to a De,ember I 2000 Util~ Revenue Bond debt sen/ice payment
00 30 Days 31 180 Days 181 360 Days 361 720 Days 721 & Over Total
MATURITY TIME FRAME 12 27% 22 47% 13 56% 22 37% 29 33% 100 00%
Institution Par Value Market Value Avg. Bank Bal Variance Percentage
.~ Texas Bank $5 956 435 $5 982 839 $3 251 267 $2 731 572 184 02%
F~rst State Bank 795 000 865 817 250 909 614 908 345 07%
Bank One 405 000 508 289 208 461 299 828 243 83%
T@T~- EARNINGS FY t999 2000 Oj~)erating Funds Month End FY To Date Budget Variance % Earned
General Fund $77 144 $180 527 $960 000 ($779 473) 18 80%
Electric Fund 325 730 $1 015 485 4 171 000 (3 155 545) 24 35%
Water Fund 92 041 $302 597 2 450 973 (2 148 376) 12 35%
Wastewater Fund 48 459 $167 296 1 248 213 (1 080 917) 13 40%
Sohd Waste Fund 23 729 $74 000 343 500 (269 500) 21 54%
MARKET UPDATE
Source Public Investor January 5 2001 The busting economy dunng the past eaverai years created tremendous wealth in the stock market and
Volume 10 Number I brought the unemployment rate down to record levets To prevent an outbreak of inflation the Federal Reserve
raised rates s~x t~mes (175 basis pointa) from June 1999 to May 2000 Since th~s per~od of tightanmg the
economy has slowed and equity markets have sagged After putting the breaks on the economy the Fed now
appeare to be on the verge of a new Interest rate easing cycle The Federal Reserve decided fo leave ratas
unchanged at its December meating but paved the way for future outs m the Fed fonds rate The future market
expects the Fed to cut rates by 25 basis points on January 31 March 20 and again ~n the summer Looking
to 2001 some econom~sta predict a steeper yield curve with lower bond yields
Key Rates Cash Markets Interest Rate Outlook
Dec 29 Year Ago Feb Av~ Apr Avg Jul AVg
Federal Funds 7 00% 5 44% 6 10% 5 90% 5 60%
T B~ll 3 Mnth Y~e[d 5 30% 5 30% 5 30%
T B;II 91 Day Yield 5 70% 5 30%
T B~I152 Wk Y~eld 5 71% 5 35%
Th~s Report ~s m full cornphance w~th the investment strategy as established for the Investment Portfolio and the Public Funds
~Ctty Manager O~rector of Ftscal Operations
~ F~scal & Municipal Services ~.
MONTHLY INVESTMENT REPORT
Period Ending November 30, 2000
% of Portfolio
INVESTMENTS Par Value Book Value Market Value (Book Value) WAM/~a~/s Y~ald
Federal Agency tssues Coupon $124 980 000 $124 541 110 $124 552 028 59 80% 498 6 43%
Federal Agency Issues Discount 18 290,000 17 946 547 17 947 824 8 62% 106 6 76%
Federal Agency Issues Cailedle 57 971 000 57 795 748 57 758 6~4 27 75% 663 6 67%
Money Market 3,500,000 3 500 000 3 500 000 1 68% 1 6 43%
Treasury Secunbes Coupon 4 500 000 4 493 439 4 491 350 2 16% 76 6 35%
TOTAL INVESTMENTS $209,241,000 $208,2761839 $2081249~866 100 00% 493 6 52%
Policy Benchmark 550 6 33%
Portfolio Yield vs Policy Benchmark Difference $33 479
PORTFOLIO SUMMARY
RECONCILIATION Change From Change ~n Value
Be~lnaln~ Values Purc, ha~es Sale~/Meturkes PurchlMatu~ties of Secuntles Ending Values
Face Value $216 961,000 19 290 000 (27 000 000) 0 0 $209 241 000
Bcok Value $215 864 259 19 161 064 (26 975 667) (7 814 603) 227 184 $208 276 839
Market Value $215,251,973 19,161 064 (26 948,004) (7 786 941) 784 833 $208 249 868
Unrealized Gain/Lose ($26 974)
Change To Market Value ($7 002 1071
00-30 Days 31 180 Da~8 181 360 Days 361 720 Days 721 & Over Total
MATURITY TIME FRAME 11 69%_... 23 06% 13 90% 23 39% 27 96% 100 00%
Inefl. t.utlon Par Value Market Value Avg Bank Bal Vanence Percentage
COLLATERAL RBVIL~M Texas Bank $5 956 435 $5 994 162 $3 143 513 $2 850 649 190 68%
First State Bank 795 000 838 456 245 760 592 696 341 17%
Bank One 405 000 505 065 192 344 312 721 262 58%
TOTAL EARNINGS FY ~a9~.2000 Oil. ragn_.g' Funds Month End FY-To Date Budget Variance % Earned
General Fund $49 779 $103 383 $960 000 ($856 617) 10 77%
Electrio Fund 337 701 $689 725 4 171 000 (3 481 275) 16 54%
Water Fund 103 555 $210 556 2 450 973 (2 240 417) 8 59%
Wastewater Fund 69207 $118837 I 248213 (1 129376) 952%
Sol~d Waste Fund 27 185 $50 271 343 500 (293 229) 14 63%
MARKET UPDAT~ Many Fed watchers expect the Fed to sh~ft ~ts policy to neutral' m December or January and lower rates early
Source Public Investor December I 2000 next year Last month the Fed maintained its position that the risks are weighted mainly toward conditions
Volume 18 ~Number 12 that generate heightened inflation pressures ' A neutral policy would view the nsks of inflation and economic
weakne~ to be balanced If the economic slowdown continues analysts expeot the Fed to lower rates ~n early
2001 However, an altemative view is that the Fed w~ll raise rates d core inflation continues to increase
Ele~on uncertainties bed a somewhat positive effsot on bonds but generated s~gmflcent volatility ~n equ~(y
markets Further v,~akness in equdy markets could reduce consumer wealth and lead to a hard lending if the
presidential uncertainties continue and equity markets become more volatile the Fed could conceivably step rn
to supply liquidity to the market
Key Rates Cash Markets Interest Rate Outlook
Nov 24 Year Ago Jan Avg Mar Avg Jun Av~
Federal"Funds 6 25% 5 63% 6 50% 6 40% 6 20%
T Bill 3 Mnth Yield - 6 10% 6 00% 5 80%
T Bill 91 Day Yield 6 18% 5 11%
T Bill 52 Wk Yield 5 88% 5 17%
Th~s Report ~s ~n full compliance with the Investment strategy as established for the Investment Portfoho a~l the Pubho Funds
Investment Act (Chapter 2256 023)
-Assl~vant City Manager Otrentor of Ftscal Operations
Fiscal & Municipal Services '~ ~ _
Prepara~FBy Lee Ann Buncelmey~.~1
Cash & Debt Administrator
MONTHLY INVESTMENT REPORT
Period Ending October 3'1, 2000
% of Por~ol~o
#~VEEiTMENTS Par Value Book Value Market Value (Book Value~ WAMIDaya Ymld
Federal Agency issues Coupon $115 980 000 $115 421 631 $115 089 695 53 47% 469 6 35%
Federal Agency Issues Discount 24 000 000 23 621 170 23 602 337 10 94% 88 6 79%
Federal Agency Issues Callable 64 971 000 64 831 163 64 574 216 30 03% 665 6 63%
Money Market 7 500 000 7 500 000 7 500,000 3 47% 1 6 43%
Treasury Securities Coupon 4 500 000 4 490 296 4 455 725 2 08% 106 6 35%
TOTAL INVESTMENTS $21619511000 ~215~864~259 $215~251~973 10000% 462 648%
Pohcy Benchmark 550 6 31%
Portfolio Y~eld vs Pohcy Benchmark D~fference $31,241
PORTFOLIO SUMMARY
RECONCILIATION Change From Change ~n Value
Be~[~nnin.~ Values Purchases Salee/Mofurltsa PurchlMetudtia$ of Securities Ending Values
Face Value $215 261 000 23 535 000 (21 845 000) 0 0 $216 951 000
Book Value $214 345 090 23 267 727 (21,886 871) I 380 856 138 313 $215,864 259
Market Value $213 685 367 23 267 727 (21 882 198) 1 385 529 181 077 $215 251 973
Unreahzed GmnlLoss ($612 286)
Change To Market Value $1 566 606
00 30 Days 31 180 Da~/s 181 360 Days 361 720 Days 721 & Over Total
MATURITY TIME PRAME 13 07% 23 79% 14 09% 22 63% 26 43% 100 00%
Institution Par Va~ue Market Value Avg Bank Bal Vanance Percentage
COLLATERAL REVIEW Texas Bank $5 956 435 $8 044 109 $3 843 710 $2 200 399 157 25%
F~rst State Bank 795 000 836 483 228 371 610 112 367 16%
Bank One 405 000 503 481 248 585 254 896 202 54%
TOTAL EARNINGS FY 2000.2001 OJ[3eratmg Funds Month End FY To Date Budget Vanance % Earned
General Fund $53 604 $53 604 $960 000 ($906 396) 5 58%
Electnc Fund 352 024 $352 024 4 171 000 (3 818 976) 8 44%
Water Fund 107 001 $107 001 2 450 973 (2 343 972} 4 37%
Wastewater Fund 49630 $49630 I 248213 (1 198583) 398%
Sohd Waste Fund 23 086 $23 086 343 500 (320 414) 6 72%
MARKET UPDATE
Source Public investor November 3 2000 AS expected the Federal Reserve Open Market Committee kept the Fed Funds rate unchanged at ~ts most
Volume t8 Number 11 recent meeting The Fed continues to co,sider the r~ek8 to the economy to be weighted mainly toward
conditions that may generate heightened mflatton pressures in the future" Analysts expect the Fed to keep
rates unchanged well into next year However the Fed Funds futures market has pnced m a possible rate h~ke
The presipent~al and congressional elechons could have a s~gmficent ~mpact on the financial markets Some
economists have observed that a continuation of divided government and gndlcok in Washington actually would
be the beat scenano for the financial markets because ~t would frustrate the fiscal agendas of both pa~bes
which are likely to reduce the foderal budget surplus The fiscal disciphne of recent yearn has helped to
maintain a Iow inflation Iow interest rate enwronment
Key Rates Cash Markets Interest Rate Outlook
Oct 27 Year Ago Dec Avg Feb Av~q Max Avg
Federal Funds 6 63% 5 19% 6 50% 6 50% 6 40%
T B~II 3 Mnth Y~eld 6 20% 6 10% 6 10%
T Bill 91 Day Y~eld 6 16% 5 00%
T B~I152 Wk Ymld 5 88% 5 12%
Th~s Report ~s ~n full comphance with the ~nvestment strategy as established for the Investment Portfolio and the Public Funds
Investment Act (Chapter 2256 023)
! - Revlewed~'Di~naG O~z
Prepared By L~Ann Bunselmeyer 0 Cash & Debt Admm~stm~r
Glossary
AccruedI~terest - In the sale cfa new issue of municipal bonds, the dollar amount, based on the stated
rate or rates of interest, which has accrued on the bonds from the dated date, or other stated date, up to but
not including the date of dehvery When a bond is purchased m the secondary market, the dollar amount,
based upon the stated rate of interest, which has accrued on the bond from the most recent interest
payment date, up to but not including the date of settlement Accrued interest is paid to the seller by the
purchaser and is usually calculated on a 360-day-year basis (assumes each month has 30 days)
Agencies - Federal agency securities
Arbttrage- Generally, transactions by which securities are bought and sold m different markets at the
same timei for the sake of the profit arising from a d~fference in prices m the two markets With respect to
the lSSUange of mumc~pal bonds, arbitrage usually refers to the d~fference between the interest pa~d on the
bonds lssded and the interest earned by investing the bond proceeds in other securities Arbitrage profits
are permitted on bond proceeds for various temporary permds after issuance of municipal bonds
Internal Revenue Serwce regulations govern arbitrage of municipal bond proceeds
Asked- The price at which secunUes are offered
Bankers' Acceptance (BA) - A draft or bill or exchange accepted by a bank or trust company The
accepting mstitut~on guarantees payment of the bill, as well as the issuer
Bearer Bond - Bond which ~s presumed to be owned by the person who bolds it The Tax Equity and
Fiscal Reapons~btl~ty Act of 1982 reqmres the issuance of municipal bonds in fully registered form, with
minor exceptions
Bid- The price offered by a buyer of securities (When you are selling securities, you ask for a bid)
Book Val~e - The original acquisition cost of an investment plus or minus the accrued amortization or
accretion ~
Broker- A broker bnngs buyers and sellers together for a commission
Callable Bond - a bond ~ssue m which all or part of its outstanding pnncipal amount may be redeemed
before maturity by the issuer under specified conditions
Call Pric~ - The price at which an ~ssuer may redeem a bond prior to maturity The price is usually at a
slight pre~nlum to the bond's original issue price to compensate the holder for loss of income and
ownership
Call R/sk ,-- The risk to a bondholder that a bond may be redeemed prior to maturity
Capital Appreciation Bond- Long-term tax exempt security sold at a large discount Yield is reinvested
at a stated rate until maturity at which time the investor receives total payment Latter represents both
pnnolpal ~nd interest
Certificate of Deposit (CD) - A time deposit w~th a specific maturity e~denced by a cemficate Large
denomination CD's are typically negotiable
Page 2 of 6
Collateral - Securities, ewdence of deposit or other property which a borrower pledges to secure
repayment of a loan Also refers to securities pledged by a bank to secure deposits of pubhc monies
Cornmeretal Paper (lux-exempt) - Short-term, unsecured promissory notes Issued m elther registered or
bearer form, and usually backed by a line of credit with a bank Maturities do not exceed 270 days and
generally average 30 - 45 days
Comprehensive Annual Financial Report (CAFR) - The official annual report for the Clty of Denton It
Includes five combined statements for each mdlwdual fund and account group prepared m conformity
w~th GAAP It also includes supporting schedules necessary to demonstrate comphance voth finance
related to legal and contractual prowslon, extensive Introductory material, and a detailed Statistical
Section
Coupon - (a) The annual rate of interest that a bond's ~ssuer pronuses to pay the bondholder on the
bond's face value (b) A certificate attached to a bond ewdencmg interest due on a payment date
Current Yield- The ratio of tho annual dollar amount of interest to the purchase puce ora bond, stated as
a percentage For example, a $1,000 bond purchased at par wxth an 8% coupon pays $80 per year, or a
current yield of 8% The same bond, If purchased at a thscounted puce of $800, would have a current
y~eld of 10%
DatedDate - The date ora bond ~ssue, pnnted on each bond, from which interest usually starts to accrue,
even though the bonds may actually be debvered at some later date
Dealer - A dealer, as opposed to a broker, acts as a pnnclpal m all transactions, buying and selling for his
own account
Debenture - A bond secured only by the general credit of the issuer
Delivery Date - Date on which the bonds are physically dehvered in exchange for the payment of the
purchase Imce The date of ~ssuance is the same date as the delivery date
Deliver Versus Payment - There are two methods of dehvery of securities dehvery versus payment and
dehvery versus receipt Dehvery versus payment is dehvery of securities w~th en exchange of money for
the securities Delivery versus receipt is dehvery of securities voth an exchange of a signed receipt for
the securities
Discount- The d~ffercnce between the cost price of a security and its matumy when quoted at lower than
face value A security selling below original offering puce shortly after sale also ls considered to be at a
thscount
Discount Securities - Non-~nterest bearing money market instruments that are issued a discount and
redeemed at maturity for full face value, e g U S Treasury B~lls
Diversification - Dividing ~nvestment funds among a variety of securities offenng independent returns
Federal Credit Agencies - Agencies of the Federal government set up to supply credit to various classes
of restitutions and mdlwduals, e g, S & L's small business firms, students, farmers, farm cooperatxves,
and exporters
Page 3 of 6
Federal Deposit Insurance Corporation (FDIC) - A federal agency that insures bank deposits, currently
up to $100,000 per deposit
Federal Funds Rate - The rate of interest at which federal funds are traded This rate is currently pegged
by the Federal Reserve through open-market operations
Federal Itome Loan Banks (FHLB) - The restitutions that regulate and lend to sawngs and loan
assoclat~ohs The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve
Banks v~s-/t-ws member commercial banks
Federal National Mortgage Association (FNMA) - FNMA, like GNMA was chartered under the Federal
National Mortgage Assoc~atlun Act in 1938 FNMA is a federal corporat~un worlang under the auspices
of the Department of Housmg and Urban Development (HUD) It is the largest single prowder of
resldentml mortgage funds m the United States Fannie Mae, as the corporation is called, ~s a private
stockholder owned corporation The corporation's purchases include a variety of adjustable mortgages
and second loans, in addition to fixed-rate mortgages FNMA's securities are also highly liquid and are
w~dely accepted FNMA assumes and guarantees that all security holders will receive t~mely payment of
principal and interest
Federal Open Market Committee (FOMC) - Consists of seven members of the Federal Reserve Board
and five of the twelve Federal Reserve Bank Presidents The President of the New York Federal Reserve
Bank is a permanent member, while the other Presidents serve on a rotaUng basis The Committee
periodically meets to set Federal Reserve guldehnes regarding purchases and sales of Government
Securltles,m the open market as a means of mfluancmg the volume of bank credit and money
Federal Reserve ~ystem - The central bank of the United States created by Congress and consisting of a
seven member Board of Governors in Washington, D C, 12 regional banks and about 5,700 commercial
banks that are members of the system
Fiscal Year - A twelve-month period which determines the time flume for financial reporting, budgeting,
and accounting At the and of the fiscal year, fiuanclal posmun and results of operations are determined
Government National Mortgage Association (GNMA or Ginnie Mae) - Securities influencing the
volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, sawngs
and loan associations, and other restitutions Security holder is protected by full faith and credit of the
U S Government Gmme Mae securities are backed by the FHA, VA or FMHM mortgages The term
"pass throughs" is often used to describe G~nme Maes
Interest - Compensation for the use of borrowed money, generally expressed as an annual percentage of
the pnncipal amount
Liquidi~y - Usually refers to the ablhty to convert assets (such as investments) rotc cash
Market Value - The Current face or par value of an investment mult~phed by the net selling price of the
security aS quoted by a recognized market pricing source quoted on the valuation date
Master Repurchase Agreement- A written contract covenng all future transactions between the part,es
to repurchase - reverse repurchase agreements that estabhshes each party's rights m the transactions A
master agreement will often specify, among other things, the r~ght of the buyer-lender to liquidate the
underlying securities m the event of default by the seller-borrower
Page 4 of 6
Maturity - The date upon which the pnncipal of a mumctpal bond becomes due and payable to the
bondholder
Money Market - The market m winch short-term debt instruments (bills, commercial paper, bankers'
acceptances, etc ) are ~ssued and traded
Note - A written, short-term promise of the issuer to repay a specified pnncipal amount on a certain date,
together vath interest at a stated rate, or according to a formula for determining that rate, payable from a
defined source of anticipated revenue Notes usually mature m less than five years
Offer- The puce asked by a seller of securities (When you are buying securities, you ask for an offer )
Open Market Operations - Purchases and sales of government and certain other securities m the open
market by the New York Federal Reserve Bank as directed by the FOMC m order to influence the volume
of money and cradit in the economy Purchases reject reserves m the bank system and stimulate growth
of money and credit, sales have the opposite effect Open market operations are the Federal Reserve's
most important and most flexible monetary pohcy tool
Original Issue Discount - An amount which represents the difference by which par value exceeds the
public offenng puce of a new issue or part of an ~ssue of municipal bonds Original issue discount is
amortized over the life of the bonds and is generally treated as tax-exempt interest When the investor
sells the bonds before maturity, any profit or loss realized on such sale is figured on the adjusted cost
basis for tax purposes The adjusted cost basis is calculated for each year the bonds are outstanding by
adding the accretuon value to the original offenng puce The accretion value is determined by the rules
and regulations of the Internal Revenue Service Selhng the bonds at a puce m excess ofthe adjusted cost
basis would result ~n a taxable gain for the seller, wh~le a selling puce below that level would be treated
as a loss for income tax purposes
Par Value - In the case of bonds, the amount of pnnclpal which must be paid at maturity Par value is
also referred to as the face amount of a security
Pooled Fund Group - An internally created fund of an mvestang entity m which one or more institutional
accounts of the investing entity are invested
Portfolio - Collection of securities held by an investor
Premium - The amount by winch the puce paid for a security exceeds par value, generally representing
the difference between the nominal ~nterest rate and the actual or effective return to the investor
Primary Dealer - A group of government securities dealers who submit dmly reports of market actavlty
and posituons and monthly financial statements to the Federal Reserve Bank of New York and are subject
to its informal oversight Primary dealers include Securities and Exchange Commission (SEC) -
registered securities broker-dealers, banks, and a few unregulated firms
Primary Market- The market for new issues of municipal securities
Principal- The face amount or par value of a bond or issue of bonds payable on stated dates of maturity
Prudent Person Rule - An investment standard In some states the law requires that a fiduciary, such as
a trustee, may invest money only m a list of securities selected by the custody state--the so-called legal
Page $ of 6
list In other states the trustee may invest in a security if it is one which would be bought by a prudent
person of discretion and intelligence who as seeking a reasonable income and preservation of capital
{2uallfledlPnblic Depositories - A financial mstttution which does not claim exemption from the
payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has
segregated for the benefit of the comwassion eligible collateral having a value of not less than its
maximum liability and which has been approved by the Pubbe Deposit Protentlon Commission to bold
public deposits
Quaitfled Representative - A Person who holds a position w~th a business organizatmn, who is
authorized to act on behalf of the business organization, and who is one of the following
(a) for a business organization doing business that is regulated by or registered with a
securities commission, a person who is registered under the rules of the National
Association of Securities Dealers,
(b) for a state or federal bank, a sawngs bank, or a state or federal credit union, a member of
the loan committee for the bank or branch of the bank or a person authorized by corporate
resolution to act on behalf of and brad the banking restitution, or
(c) for an investment pool, the person authorized by the elected official or board w~th
authority to administer the act~vmties of the investment pool to sign the written msmament
on behalf of the investment pool
Rate of Return - The yield obtainable on a security based on its purchase pnee or its current market
price This may be the amortized yield to matonty on a bond the current income remru
Ratings - EvaluaUuns of the credit quality of notes and bonds usually made by independent rating
services, although many financial mstitottons also rate bonds for their own purposes Ratings generally
measure the probability of the tamely repayment ofpnncipal of and interest on municipal bonds Ratings
are mmally made before issuance and are continuously rewewed and may be emended to reflect changes
in the issuer's credit position The information required by the rating agencies vanes with each bond
issue, but generally includes demographics, debt burden, economic base, finances, and management
structure The reformation is evaluated and the issue is assigned a letter rating which reflects the
erethtworthmess of the bonds The higher the credit rating, the more favorable the effect on the
marketability of the bond
Repurchase/lgreement - A simultaneous agreement to buy, hold for a specified time, and sell back at a
future date obhgat~ons described by Section 2256 009(a)(l), at a market value at the time the funds are
disbursed of not less than the pnnclpal amount of the funds disbursed The term includes a direct security
repurchase agreement and a reverse security repurchase agreement
Safekeeping - A serwce to customers rendered by banks for a fee whereby sacuntles and valuables of all
types and descriptions are held m the bank's vanlts for protection
Secondary Market - A market made for the purchase and sale of outstanding Issues follovang the untial
d~stnbutl0n
Securities and Exchange Commission or SEC- The federal agency responsible for supervisln$ and
regulatmgthesecuntiesindustD, (.~enerally, munlcipal secuntles are exempt from the SEC's reglstration
and reporting requirements However, the SEC has responsibility for the approval of Municipal
Securities Rulemaking Board rules, and has .lunsdlct~on, pursuant to SEC Rule 10b-5, over fraud m the
sale of municipal securities
Page 6 of 6
Security - Generally, exqdence of debt or equity m a common enterprise in which a person invests in the
expectation of earning income Tha term includes notes, stocks, bonds, debentures, mortgages, and other
forms of negotiable and non-negotlable evidences of indebtedness or ownersinp Unless exempted, as are
municipal bonds, securities transactions are subject to federal and state regulation
Separately Invested Asset - An account or fund of a state agency or local government that ~s not invested
m a pooled fund group
Treasury Securities - Debt obhgat~ons of the Umted States Government sold by the Treasury Department
m the forms of balls, notes, and bonds
Bills - Short-term obhgat~uns which mature m one year or less, and are sold at a d~seount m l~eu
of paying periodic interest
Notes - Interest beanng obbgatlons which mature between one year and 10 years
Bonds - Interest bearing long-term obhgat~ons which generally mature m 10 years or more
Yield Curve - A graph which plots the y~elds on securities w~th eqmvalent quahty but different
maturities, at a g~ven point m time The vertical ax~s represents the interest rates, wh~le the horizontal
axis depicts the years to maturity The term structure of ~nterest rates, as reflected by the yield curve, will
vary according to market conditions, resulting m a variety ofy~eld curve configurations
Normal or Positive Yield Curve - Indicates that short-term securities have a lower ~nterest rate
than long-term securities
Inverted or Negative Yield Curve - Reflects the s~tuat~on of short-term rates exceeding long-term
rates
Flat Yield Carve - Reflects the s~tuatlon when short and long-term rates are the same
Humpback Yield Curve - An unusual shape, indicating that rotes are nsmg m the early years,
peaking m the m~ddle years and decbmng ~n later years
Yield to Matnrlty- The rate of return to the investor earned from payments of pnnc~pal and interest, w~th
interest compounded semiannually and assuming that interest paid ~s reinvested at the same rate Y~eld to
maturity takes Into account the time value of the investment
Zero Coapon Bond - A bond winch pays no interest, but is issued at a deep d~scount from par,
appreciating to ~ta full value at maturity