HomeMy WebLinkAbout2023-008 Quarterly Financial Report - Period Ending Sept. 30, 2022January 20, 2023 Report No. 2022-008
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2022.
BACKGROUND:
Attached, for your review is the Quarterly Financial Report for the period ending September 30,
2022. If you have any questions or need additional information, please let me know.
STAFF CONTACT:
Cassey Ogden, Interim-Assistant City Manager
(940) 349-7195
cassandra.ogden@cityofdenton.com
Fourth QuarterFinancial Report
21-22FISCAL YEAR
CITY OF DENTON
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City’s
financial position and economic activity. This report includes
information for the quarter ending September 30, 2022.
This report is presented in four sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides preliminary actuals and a comparison to the budget for
major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report section provides a summary
of the City’s investment portfolio, interest earnings and a brief
market outlook.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Cassandra Ogden
Assistant City Manager
215 East McKinney Street
Denton, TX 76201
940-349-7195
Section 1
City of Denton
Quarterly Financial Report
September 2022
Executive Dashboards
Note: All figures presented are in millions of dollars.FY 2021-22 FY 2021-22ANNUAL PRELIMINARY FY 2021-22DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Fund Balance as of 09/30/21 39.39$ 38.63$ RESOURCES: Ad Valorem Taxes 49.73 48.69 -2% Sales Tax 46.25 53.26 15 % Franchise Fees 3.63 3.13 -14% Other Taxes 0.45 0.54 20% Service Fees 8.61 9.61 12 % Fines and Fees 2.63 1.88 -29% Licenses and Permits 6.08 9.06 49% Miscellaneous Revenue 3.94 3.29 -16% Transfers In 29.01 30.07 4%Total Revenues 150.33 159.53 6%Total Resources 189.72 198.16 EXPENDITURES: Personal Service 104.16 105.35 1% Material and Supplies 3.59 3.02 -16% Maintenance and Repairs 1.89 1.80 -5% Insurance 1.63 2.41 48% Miscellaneous 1.73 0.94 -46% Operations 17.51 19.29 10 % Transfers Out 21.80 19.22 -12% Fixed Assets 0.58 0.54 -7%Total Expenditures 152.89 152.57 0%Net Income (Loss) (2.56) 6.96 Ending Fund Balance 36.83$ 45.59$ City of Denton, Texas General Fund Executive Dashboard $‐ $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 $160 $170Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsRevenues for Sales Tax, and Licenses and Permits is higher than budget due to growth. Insurance expenditures are higher than budget due to increases in actual expenses incurred in the Risk Retention fund.Operations expenditures are higher than budget is mainly due to vehicle maintenance. $‐ $1.0 $2.0 $3.0 $4.0 $5.0Sales Tax Monthly Average by Quarter1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardFY 2021-22 FY 2021-22ANNUAL PRELIMINARYDESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 9/30/21 109.04$ 119.50$ RESOURCES: Rate Revenues 163.52 164.64 1% Transmission Revenue 56.16 60.36 7% Other Revenues 4.75 23.36 392% DEC Revenues 21.30 59.94 181%Total Revenues 245.73 308.30 25%Total Resources 354.77 427.80 EXPENDITURES: Purchased Power 133.32 99.63 -25% DEC Fuel 12.48 26.28 111% Transmission of Power 19.18 21.46 12% Personnel Service 20.10 20.38 1% Operation and Maintenance 39.68 39.55 0% Debt Service 62.08 61.88 0% Transfers Out 16.51 16.19 -2% Capital Outlay 0.26 0.14 -46%Total Expenditures 303.61 285.51 -6%Net Income (Loss) (57.88) 22.79 Ending Working Capital and Reserves 51.16$ 142.29$ FY 2021-22$0$50$100$150$200$250$300$350Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsOther Revenues are higher than budget due to proceeds of $15.2 million from the sale of the TMPA Coal Mine.DEC Revenues are higher than budget due to increased energy prices. Purchased Power and DEC Fuel expenditures are higher than budget due to increased energy and energy/fuel prices.Transmission of Power expenditures are higher than budget due to changes in rates of various transmission providers during the fiscal year.01002003004005006003Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q222016 – 2022 Historical Quarterly GWH Sales1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.
Note: All figures presented are in millions of dollars.FY 2021-22FY 2021-22FY 2021-22ANNUALP R ELIM IN A R YVARIANCEDESCRIPTION BUDGET 1ACTUALS Beginning Working Capital and Reserves as of 09/30/21220.55$ 24.58$ RESOURCES: Water Sales 41.42 47.30 14% Othe r Wate r Re ve nue s 2.19 2.03 -7% Transfers In 2.03 1.81 -11% Impact Fee Revenue 6.61 3.89 -41%Total Revenues 52.25 55.03 5%Total Resources 72.80 79.61 EXPENDITURES: P ers o nnel Service 9.01 7.86 -13% Operations, Services 11.97 12.24 2% Capital Outlay 12.95 12.62 -3% Debt Service 10.84 10.82 0% Transfers Out 6.48 6.56 1%Total Expenditures 51.25 50.10 -2%Net Income (Loss) 1.00 4.93 Ending Working Capital and Reserves 21.55$ 29.51$ City of Denton, Texas Water Fund Executive Dashboard $‐ $10 $20 $30 $40 $50 $60Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsWater Sales exceeded budget by $5.8M.Other Water Revenue are less than budget a result of lower‐than‐expected auction proceeds, debt payments from others, and interest on past due balances.Lower than expected expenditures in Personnel Services due to vacant positions resulting in salary savings.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.2The Beginning Working Capital balance excludes $19.9 M of Impact Fee Reserves and $1.00 million for Development Plan Line Reserves.05001,0001,5002,0002,5003,0002015‐2022 Historical Quarterly Gallons Sold (in Millions)
FY 2021-22 FY 2021-22 FY 2021-22ANNUALPRELIMINARYDESCRIPTION BUDGET 1 ACTUALS VARIANCEBeginning Wo rking Capital and Reserves as of 09/30/21217 .0 7$ 16.46$ RESOURCES: Wastewater Fees 26.19 25.98 -1% Other Wastewater Revenue 1.94 2.17 12% Drainage Fees 5.64 5.41 -4% Transfer In 0.61 0.24 -61% Impact Fee Revenue 4.27 4.27 0% Aid in Construction - 10.00 10%Total Revenues 38.65 48.07 24%Total Resources 55.72 64.53 EXPENDITURES: Personal Service 8.88 8.27 -7% Operations, Services 9.65 9.47 -2% Capital Outlay 5.64 5.17 -8% Debt Service 7.83 6.83 -13% Transfer Out 5.91 5.71 -3%Total Expenditures 37.91 35.45 -6%Net Income (Loss) 0.74 12.62 Ending Working Capital and Reserves 17.81$ 29.08$ Note: All figures presented are in millions of dollars.City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $10 $20 $30 $40 $50 $60Revenue & Expenses (in Millions)YTD RevenueYTD Expenses1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021‐22 budget process.2The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage Reserves, and $1.0 million for Development Plan Line Reserves.02004006008001,0001,2001,4002015‐2022 Historical Quarterly Gallons Billed (in Millions)Key TrendsOther Wastewater Revenue is higher than budget due to an increase in compost fee revenues.Aid in Construction of $8 million is due to developer contributions for the Milam Creek Basin and $2 million is related to Robson Ranch Diversion project.
FY 2021-22 FY 2021-22 FY 2021-22ANNUAL PRELIMINARYDESCRIPTION BUDGET ACTUALS VARIANCEREVENUES: Residential Drainage Fees 2.16$ 2.08$ -4% Nonresidential Drainage Fees 3.48 3.33 -4% General Fund Transfer 0.37 - -100%Total Revenues 6.01 5.41 -10%EXPENDITURES: Personal Service 2.03 1.81 -11% Operations, Services 0.81 0.91 12% Capital Outlay 2.13 2.13 0% Transfer Out 0.67 0.56 -16%Total Expenditures 5.64 5.41 -4%Net Income (Loss) 0.37$ -$ Note: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive Dashboard $‐ $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsOperations, Services expenses are higher than budget due to vehicle maintenance.
FY 2021-22 FY 2021-22ANNUAL PRELIMINARY FY 2021-22DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Wo rking Capital and Reserves as of 09/30/2126.21$ 6.63$ RESOURCES: Collection & Disposal 32.75 32.65 0% Recycling 6.16 7.14 16% Other Revenue 0.97 1.59 64%Total Revenues 39.88 41.38 4%Total Resources 46.09 48.01 EXPENDITURES: P e rs o nne l S e rvic e 11.55 11.35 -2% Operations, Services 10.73 10.13 -6% Capital Outlay 2.51 2.20 -12% Debt Service 5.69 5.68 0% Landfill Clo s ure 0.72 0.72 0% Transfer Out 5.97 5.79 -3%Total Expenditures 37.17 35.87 -3%Net Income (Loss) 2.71 5.51 Ending Working Capital and Reserves 8.92$ 12.14$ 01,0002,0003,0004,0005,0006,0007,0008,0009,0002021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q4Recycling and ReuseTonnageResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsOther Revenue is higher due to gains on sale of fixed assets.Operations, Services expenses are lower than budget due to vehicle maintenance.05,00010,00015,00020,00025,00030,0002021Q12021Q22021Q32021Q42022Q12022Q22022Q32022Q4Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per WeekCommercial RefuseCommercial Recycling1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021 ‐ 22 budget process.2The Beginning Working Capital and Reserves excludes $12.0 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas Airport Fund Executive DashboardKey TrendsIncreased volume and higher natural gas prices have caused a greater than expected increase in Gas Well Royalties$0.0$1.0$2.02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing by fiscal year)Note: All financial amounts presented are in millions of dollars.FY 2021-22 FY 2021-22ANNUAL PRELIMINARY FY 2021-22DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/21 2.61$ 2.90$ RESOURCES: Airport Ground Leases 0.80 0.85 6% FBO Commissions 0.21 0.27 28% Fuel Flowage Fees 0.12 0.12 5%To tal Operating Revenues 1.13 1.24 10%EXPENDITURES: Personal Service 0.43 0.40 -7% Operations , Services 0.40 0.27 -32% Transfer Out 0.46 0.53 15%To tal Operating Expenditures 1.29 1.20 -7%Net Operating Income (Loss) (0.16) 0.04 NON-OPERATING REVENUES: Investment Income 0.04 0.04 8% Gas Well Royalties 0.23 1.00 329%Total Non-Operating Revenues 0.27 1.03 281%NON-OPERATING EXPENDITURES: Debt Service 0.72 0.72 0%Total Non-Operating Expenditures 0.72 0.72 0%Net Non-Operating Income (Loss) (0.45) 0.31 Net Income (Loss) (0.61) 0.35 Ending Working Capital and Reserves 2.00$ 3.25$ 1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021 ‐ 22 budget process.
FY 2021-22 FY 2021-22ANNUALPRELIMINARYDESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/21 3.93$ 4.50$ RESOURCES: Franchise Fees 14.48 17.72 22% Street Cuts 0.03 - -100% Investment Income 0.04 (0.01) -125% Transfers In 1.31 1.36 4%Total Revenues 15.86 19.07 20%Total Resources 19.79 23.57 EXPENDITURES: Personal Service 3.55 3.00 -15% Materials & Supplies 0.10 0.12 20% Maintenance & Repairs 6.51 4.89 -25% Operations, Services 0.85 1.13 33% Transfer Out 5.31 6.87 29%Total Expenditures 16.32 16.01 -2%Net Income (Loss) (0.46) 3.06 Ending Fund Balance 3.47$ 7.56$ FY 2021-221Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsFranchise fees are higher than budgeted due to increased revenues from the City utility system and outside telecommunication companies.Street Cuts has been reduced due to the utilities completing their own repairs. Maintenance & Repairs are $1.62 million less than budgeted due to a competitive labor market and supply chain shortages resulting in reduced expenditures through Q4 2022. In response, the City has increased starting crew wages and is working with vendors to acquire the equipment necessary to increase maintenance.Transfer Out are $1.56 million above budget due to additional transfers out to capital projects.Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY20-21FY21-22 - 20.00 40.00 60.00 80.00 100.00Qtr 1 Qtr 2 Qtr 3 Qtr 4Lane Miles Surface TreatmentFY 20-21FY21-22 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 $22.0Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2021-22 FY 2021-22
GRANT PRELIMINARY FY 2021-22
DESCRIPTION AMOUNT ACTUALS VARIANCE
2021-22 Budget
Comm Development 7.61$ 3.08$ -60%
Public Safety 2.18 0.63 -71%
Transportation 44.47 4.57 -90%
Other 25.24 8.76 -65%
Total Budget 79.50 17.04 -79%
New Awards
Public Safety 0.71 0.71 0%
Transportation 0.18 0.18 0%
Total New Awards 0.89 0.89 0%
Totals 80.39$ 17.93$ -78%
COMM DEV
9.46%
PUBLIC SAFETY
3.61%
TRANS
55.54%
OTHER
31.39%
FY 2021-22 Grants Awarded
$-
$20.0
$40.0
$60.0
COMMDEVPUBLIC SAFETYTRANSOTHERMillionsAwards Expenses
FY 2021-22 Awards & Expenses (in Millions)
City of Denton, Texas
Grants Dashboard
Note: All figures presented are in millions of dollars.
Key Trends
The following grants have been received in FY 2021-22:
Chapter 59 Asset Forfeitures: $27,417
U.S. Marshals Violent Offenders Task Force: $76,513
North Texas Organized Crime Task Force: $11,381
PD-Law Enforcement Officer Standards & Education: $21,785
U.S. Immigration & Customs Enforcement: $2,873
Edward Byrne Memorial Justice Assistance Grant: $52,618
FY2021 Improving Criminal Justice Responses:$35,254
Texas Intrastate Fire Mutual Aid System: $124,311
2021-SHSP-EOD Protective Suit: $40,864
2020 Staffing for Adequate Fire & Emergency (SAFER) Grant: $188,854
Fire-Law Enforcement Officer Standards & Education: $1,000
Denton County Vaccine Operation Assistance: $131,443
TxDot-CMAQ-School Connection Sidewalks: $75,520
TxDot-Safe Routes to School: $108,400
Section 2
City of Denton
Quarterly Financial Report
September 2022
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton
General Fund
Schedule of Revenues - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
REVENUE DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
Current Year - Ad Valorem 49,121,240$ 49,083,288$ 48,251,734$ -2%
Delinquent - Ad Valorem 81,014 255,594 98,328 -62%
Miscellaneous Penalties & Fees 293,170 388,256 340,187 -12%
Ad Valorem Taxes 49,495,424 49,727,138 48,690,249 -2%
Sales Tax 45,404,857 46,246,938 53,264,725 15%
Franchise - Gas Utilities 350,171 274,458 313,262 14%
Franchise - Private Electric Utilities 99,611 86,425 72,774 -16%
Franchise - Cable 249,269 173,069 157,931 -9%
Franchise - Telecom 29,569 58,647 22,342 -62%
Franchise - Denton Municipal Utilities 3,270,312 3,036,037 2,562,327 -16%
Franchise Fees 3,998,932 3,628,636 3,128,636 -14%
Other Taxes 376,006 446,522 536,612 20%
Ambulance Service Fees 5,404,276 4,334,724 3,914,617 -10%
Fire Department Fees 132,462 147,952 194,262 31%
Building Inspections Fees 576,422 556,742 700,016 26%
Park Department Fees 1,503,132 1,448,690 1,732,193 20%
Planning Department Fees 1,629,878 2,010,213 2,943,611 46%
Miscellaneous Service Fees 85,129 113,487 126,155 11%
Service Fees 9,331,299 8,611,808 9,610,854 12%
Denton Municipal Fines 627,853 1,156,000 701,025 -39%
Parking Fines 40,310 139,000 83,035 -40%
Miscellaneous Fines and Fees 386,684 471,535 419,479 -11%
Court Administrative and Service Fees 517,738 866,137 671,860 -22%
Fines and Fees 1,572,585 2,632,672 1,875,399 -29%
Demolition Permits 12,814 14,500 8,779 -39%
Building Permits 5,862,868 6,008,546 8,932,511 49%
Certificate of Occupancy 50,923 53,000 94,001 77%
Miscellaneous Licenses and Permits 12,713 6,009 23,427 290%
Licenses and Permits 5,939,318 6,082,055 9,058,718 49%
Investment Income 160,095 785,000 (127,268) -116%
Miscellaneous Revenues 3,172,952 3,154,232 3,417,438 8%
Miscellaneous Resources 3,333,047 3,939,232 3,290,170 -16%
ROI - Denton Municipal Utilities 13,963,051 15,459,438 16,781,494 9%
Transfers 14,379,315 13,551,129 13,288,631 -2%
Transfers 28,342,366 29,010,567 30,070,125 4%
Total General Fund Revenues 147,793,834$ 150,325,568$ 159,525,488$ 6%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
Y-T-D BUDGET ACTUALS ACTUALS
NEIGHBORHOOD SERVICES
Building Inspections 3,393,017$ 3,668,837$ 3,476,954$ -5%
Community Improvement Services 787,134 779,379 58,997 -92%
Libraries 6,428,547 6,656,368 6,193,341 -7%
Parks and Recreation 13,517,168 14,572,452 15,129,442 4%
Planning 1,974,670 2,876,834 3,025,844 5%
Development Services Admin 1,161,927 1,518,530 1,210,974 -20%
Gas Well Review 227,392 376,899 240,212 -36%
Social Services 1,455,803 2,325,382 2,403,453 3%
28,945,658 32,774,681 31,739,217 -3%
PUBLIC SAFETY
Animal Services 2,500,926 2,683,147 2,608,862 -3%
Fire 34,739,801 35,246,455 37,673,006 7%
Municipal Judge 452,967 567,082 548,078 -3%
Police 42,335,189 45,400,386 45,050,175 -1%
81,427,528 83,897,070 85,880,121 2%
TRANSPORTATION
Traffic Operations 2,415,246 2,385,130 2,272,163 -5%
Street Lighting 903,937 850,000 934,302 10%
3,319,183 3,235,130 3,206,465 -1%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 2,223,224 2,429,193 2,525,637 4%
Economic Development 4,252,363 4,434,595 4,223,302 -5%
Finance 4,019,776 5,645,942 5,186,622 -8%
Human Resources 2,556,172 2,820,895 2,798,954 -1%
Internal Audit 500,171 561,268 582,965 4%
Legal Administration 3,172,029 3,310,390 2,870,393 -13%
Public Affairs 1,996,398 2,569,200 1,924,581 -25%
Non-Departmental 10,663,555 11,217,981 11,628,495 4%
29,383,688 32,989,464 31,740,949 -4%
TOTAL EXPENDITURES 143,076,057$ 152,896,345$ 152,566,752$ 0%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended Sep 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 9/30/21 109,035,229$ 119,498,711$
REVENUES:
Rate Revenues 143,122,390$ 163,523,145 164,639,259 1%
Transmission Revenues 53,589,464 56,160,399 60,361,234 7%
Other Revenues 8,263,917 4,752,353 23,357,978 392%
DEC Revenues 138,885,966 21,293,023 59,944,918 182%
Total Revenues 343,861,737 245,728,920 308,303,389 25%
EXPENDITURES:
Purchased Power 165,630,884 133,315,559 99,615,055 -25%
DEC Fuel 29,679,458 12,475,775 26,284,710 111%
Transmission of Power 18,776,508 19,182,169 21,460,710 12%
Personnel Services 18,147,292 20,102,836 20,377,973 1%
Materials and Supplies 719,361 2,425,169 1,702,970 -30%
Maintenance and Repair 825,348 1,432,671 1,572,658 10%
Insurance 1,778,711 3,786,807 3,401,192 -10%
Return on Investment Return on Investment11,802,169 11,785,382 14,273,930 21%
Franchise Fee Franchise Fee9,833,455 10,644,166 11,892,619 12%
Miscellaneous 544,140 756,916 526,390 -30%
Operations 5,638,171 8,843,126 6,187,241 -30%
Debt Service 55,014,488 62,079,904 61,882,519 0%
Interfund Transfers 16,683,700 16,514,249 16,187,542 -2%
Capital Outlay 450,929 263,494 143,494 -46%
Total Expenditures 335,524,614 303,608,223 285,509,003 -6%
Net Income (Loss)8,337,123$ (57,879,303) 22,794,386
Ending Working Capital and Reserves 51,155,926$ 142,293,097$
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount
which was estimated in the FY 2021-22 budget process.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/211 20,546,185$ 24,582,745$
REVENUES:
Water Sales Residential 19,243,418$ 21,519,010 23,470,037 9%
Water Sales Commercial 16,120,532 18,475,937 19,391,723 5%
Water for Resale 2,111,779 1,423,894 4,435,293 211%
Other Water 1,526,463 1,892,391 1,836,177 -3%
Transfers In 1,460,974 2,033,275 1,813,049 -11%
Investment Income 111,861 300,000 198,314 -34%
Impact Fee Revenue 6,605,000 6,605,000 3,887,473 -41%
Total Revenues 47,180,027 52,249,507 55,032,066 5%
EXPENDITURES:
Personal Service 7,701,977 9,013,419 7,864,956 -13%
Purchased Power 1,352,879 1,410,789 1,681,109 19%
Purchase of Water 2,069 3,000 1,603 -47%
Materials and Supplies 1,482,815 2,100,011 2,385,774 14%
Maintenance and Repairs 1,675,145 2,162,508 1,964,188 -9%
Insurance 396,477 244,905 366,984 50%
Miscellaneous 240,505 348,584 229,393 -34%
Operations, Services 1,450,700 2,177,877 1,815,534 -17%
Capital Outlay 12,454,970 12,950,759 12,620,436 -3%
Return on Investment 1,292,424 1,449,659 1,562,169 8%
Franchise Fee 1,846,319 2,070,942 2,231,670 8%
Debt Service 10,901,425 10,835,105 10,816,497 0%
Transfers Out 5,239,602 6,483,661 6,555,047 1%
Total Expenditures 46,037,307 51,251,219 50,095,360 -2%
Net Income (Loss)1,142,720$ 998,288 4,936,706
Ending Working Capital
and Reserves 21,544,473$ 29,519,451$
1 The Beginning Working Capital balance excludes $19,916,357 of Impact Fee Reserves and includes $1,000,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/211 17,068,351$ 16,455,340$
REVENUES:
Residential Fees 11,148,913$ 11,879,945 12,190,748 3%
Commercial Fees 11,847,269 13,504,172 12,983,709 -4%
Effluent Irrigation Fees 97,296 96,470 133,612 39%
Wholesale Fees 749,092 713,103 666,536 -7%
Other Wastewater Fees 1,858,625 1,833,982 2,031,895 11%
Drainage Fees 5,168,014 5,638,695 5,414,436 -4%
Transfer In 239,700 611,645 244,494 -60%
Investment Income 74,762 100,000 135,219 35%
Impact Fee Reserves 4,270,000 4,270,000 4,270,000 0%
Aid in Construction - - 10,000,000
Total Revenues 35,453,671 38,648,012 48,070,649 24%
EXPENDITURES:
Personal Service 8,050,103 8,881,839 8,265,081 -7%
Purchased Power 1,014,247 1,221,000 1,067,503 -13%
Materials and Supplies 1,150,611 1,338,420 1,480,999 11%
Maintenance and Repairs 1,630,504 2,375,605 1,774,748 -25%
Insurance 418,029 274,271 411,144 50%
Miscellaneous 13,410 32,942 24,936 -24%
Operations, Services 2,145,500 2,194,887 2,425,723 11%
Capital Outlay 6,823,328 5,640,309 5,165,853 -8%
Return on Investment 868,458 912,087 945,395 4%
Franchise Fee 1,240,655 1,302,981 1,350,565 4%
Debt Service 6,570,998 7,825,131 6,834,384 -13%
Transfers Out 5,378,410 5,907,049 5,707,502 -3%
Total Expenditures 35,304,253 37,906,521 35,453,833 -6%
Net Income (Loss)149,418$ 741,491 12,616,816
Ending Working Capital
and Reserves 17,809,842$ 29,072,156$
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2021-22 budget process.
1 The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage
Reserves,
and $1.0 million for Development Plan Line Reserves.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
REVENUES:
Residential Drainage Fees 1,995,012$ 2,158,037$ 2,077,945$ -4%
Nonresidential Drainage Fees 3,173,002 3,480,658 3,336,491 -4%
General Fund Transfer - 367,151 - -100%
Total Revenues 5,168,014 6,005,846 5,414,436 -10%
Total Resources 5,168,014 6,005,846 5,414,436 -10
EXPENDITURES:
Personnel Service 1,692,884 2,022,003 1,806,918 -11%
Materials and Supplies 51,612 88,900 87,817 -1%
Maintenance and Repairs 156,370 134,500 174,588 30%
Insurance 69,059 42,801 64,306 50%
Miscellaneous 5,207 16,900 8,887 -47%
Operations, Services 400,152 529,182 582,459 10%
Capital Outlay 2,355,270 2,130,982 2,129,847 0%
Debt Service 541 - - 0%
Transfer Out 436,919 673,428 559,614 -17%
Total Expenditures 5,168,014 5,638,696 5,414,436 -4%
Net Income (Loss)-$ 367,150$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended Sep 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/211 6,210,148$ 6,629,830$
REVENUES:
Refuse Fees - Residential 4,577,483$ 5,429,866 4,765,781 -12%
Refuse Fees - Commercial 14,838,143 15,134,905 14,978,591 -1%
Residential Recycling 5,567,752 4,769,339 5,770,523 21%
Commercial Recycling 1,289,340 1,389,027 1,370,717 -1%
Landfill Gate and Material Sales 11,312,784 12,183,212 12,901,642 6%
Recycled Material Sales 67,343 69,364 66,470 -4%
Asset Sales and Interest Income 102,746 412,385 817,468 98%
Other Revenue 301,046 493,295 704,460 43%
Total Revenues 38,056,637 39,881,393 41,375,652 4%
EXPENDITURES:
Personal Service 10,710,066 11,552,240 11,347,872 -2%
Materials and Supplies 341,096 767,522 457,454 -40%
Maintenance and Repairs 210,416 295,901 187,756 -37%
Insurance 456,611 295,935 444,282 50%
Miscellaneous 38,708 66,320 25,987 -61%
Operations, Services 5,639,402 7,381,496 6,988,309 -5%
Capital Outlay 10,412,187 2,511,679 2,203,370 -12%
Debt Service 6,934,108 5,690,617 5,683,705 0%
Franchise Fee 1,889,570 1,911,728 2,019,882 6%
Transfers for Landfill Closure 702,648 719,000 717,641 0%
Admin Transfers Out 4,963,749 5,974,266 5,790,325 -3%
Total Expenditures 42,298,561 37,166,704 35,866,583 -3%
Net Income (Loss)(4,241,924)$ 2,714,689 5,509,069
Ending Working Capital
and Reserves 8,924,837$ 12,138,899$
1 The Beginning Working Capital Reserve excludes $11,992,859 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-
22 budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended Sep 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/21 2,606,662$ 2,899,720$
OPERATING REVENUES:
Airport Ground Leases 821,396$ 800,492 848,196 6%
FBO Commissions 217,979 212,160 271,666 28%
Miscellaneous 124,915 118,560 124,355 5%
Total Operating Revenues 1,164,290 1,131,212 1,244,217 10%
OPERATING EXPENDITURES:
Personal Service 350,296 431,901 402,758 -7%
Materials and Supplies 8,243 34,790 12,635 -64%
Maintenance and Repairs 20,083 76,400 41,892 -45%
Insurance 41,237 27,412 40,915 49%
Miscellaneous - 100 - -100%
Operations 142,494 262,135 177,125 -32%
Transfers Out - Operating 502,375 462,696 527,551 14%
Total Operating Expenses 1,064,728 1,295,434 1,202,876 -7%
Operating (Loss) 99,562 (164,222) 41,341
NON-OPERATING REVENUES:
Investment Income 30,774 40,800 43,984 8%
Other 157,112 - -
Gas Well Royalties 422,043 231,830 995,048 329%
Total Non-Operating Revenues 609,929 272,630 1,039,032 281%
NON-OPERATING EXPENDITURES:
Debt Service 762,923 724,659 722,892 0%
Total Non-Operating Expenses 762,923 724,659 722,892 0%
Non-Operating Income (Loss)(152,994)(452,029)316,140
Net Income (Loss)(53,432)$ (616,251)357,481
Ending Working Capital 1,990,411$ 3,257,201$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in
the FY 2021-22 budget process.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2022
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Fund Balance
as of 9/30/2021 3,928,623$ 4,503,637$
RESOURCES:
Franchise Fees 14,085,090$ 14,476,328 17,721,899 22%
Street Cuts 24,873 33,827 - -100%
Investment Income 386 42,000 (11,041) -126%
Transfers In 1,244,140 1,306,002 1,362,157 4%
Total Resources 15,354,489 15,858,157 19,073,015 20%
EXPENDITURES:
Personal Service 3,064,948 3,548,910 2,999,815 -15%
Materials and Supplies 72,282 101,200 116,747 15%
Maintenance and Repairs 6,011,467 6,209,798 4,885,442 -21%
Insurance 134,926 89,690 134,824 50%
Miscellaneous 4,486 7,100 615 -91%
Operations, Services 629,231 775,047 993,347 28%
Transfer Out 5,437,149 5,585,763 6,874,974 23%
Total Expenditures 15,354,489 16,317,508 16,005,764 -2%
Net Income (Loss)-$ (459,351) 3,067,251
Ending Fund Balance 3,469,272 7,570,888
1Annual adopted budget as amended or modified.
Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended September 30, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
FY 2021-22 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)6,293,330$ 2,372,988$ 1,302,878$ -45%
US Dept of HUD -
Community Development Block Grant(CDBG)-
CARES ACT 529,359 1,180,791 620,041 -47%
Texas Emergency Rental Assistance Program-CARES
Act 187,444 18,957 - -100%
US Dept of HUD -
HOME Investment Partnership Program 5,241,002 3,015,263 865,581 -71%
Emergency Solutions Grants Program-CARES Act 1,039,136 1,018,267 289,536 -72%
Community Development1 13,290,271 7,606,266 3,078,036
TxDot STEP Comprehensive Grant - 78,500 25,466 -68%
National Sexual Assault Kit Initiative Grant 100,888 445,149 71,420 -84%
2020 UASI-Specialized Regional Response Teams
Sustainment 132,416 123,003 11,291 -91%
2021 UASI-Specialized Regional Response Teams
Sustainment - 94,575 60,823 -36%
2021 UASI-Regional Warning Siren Cyber Security - 43,692 42,975 -2%
2019 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant 167,676 1,026,738 281,660 -73%
Urban Search & Rescue Response System (TEEX)- 330,000 92,087 -72%
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 40,000 40,000 0%
Denton Police Department-Coronavirus Response
Grant 80,416 3,088 1,896 -39%
Public Safety1 481,396 2,184,745 627,618
Airport Maintenance (RAMP) Grant - 50,000 49,772 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 48,984,689 14,896,002 1,715,789 -88%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 27,295,314 19,907,802 1,837,311 -91%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 53,865 - -100%
TxDot-RTR-McKinney (Formerly FM426) 15,977,398 2,895,944 708,052 -76%
TxDot-RTR-Hickory Creek FM2181-FM2499 2,041,307 359,920 6,240 -98%
TxDot-RTR-North Texas Boulevard Roundabout 268,344 1,891,555 127,150 -93%
TxDot-Sycamore-Welch Bicycle & Pedestrian - 1,500,000 126,560 -92%
NCTCOG-Waze Data Sharing - 5,000 - -100%
Airport Grant-CARES Act 157,000 157,100 - -100%
Airport Coronavirus Relief Grant Program 57,000 57,000 - -100%
Airport Coronavirus Relief Grant Program - 34,162 - -100%
Denton County Transportation Authority (DCTA)
Transportation Reinvestment Program (TRiP) - 2,517,997 - -100%
American Rescue Plan (ARP) Act of 2021 - Airport
Rescue Grants - 148,000 - -100%
Transportation1 94,781,052 44,474,347 4,570,874
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended September 30, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
Interlibrary Loan Program (ILL) - 35,000 14,421 -59%
TexTreasures Grant - 24,820 24,820 0%
Green Ribbon Grant - 773,666 571,281 -26%
Texas Commission on the Arts Cultural District Grant - 100,000 - -100%
NCTCOG-Solid Waste Implementation Grant-Parks
& Recreation - 200,000 199,447 0%
NCTCOG-Solid Waste Implementation Grant-Solid
Waste - 67,723 13,223 -80%
Governor's Community Achievement Award - 290,000 - -100%
American Rescue Plan (ARP) Act of 2021 6,136 23,290,438 7,935,258 -66%
Miscellaneous New Grants - 460,000 - -100%
Other 6,136 25,241,647 8,758,450
Total FY 2021-22 Budget 108,558,855 79,507,005 17,034,978 -79%
New Awards
Chapter 59 Asset Forfeitures - 27,417 27,417 0%
U.S. Marshals Violent Offenders Task Force - 76,513 76,513 0%
North Texas Organized Crime Task Force (NTOCTF)- 11,381 11,381 0%
PD-Law Enforcement Officer Standards & Education - 21,785 21,785 0%
U.S. Immigration & Customs Enforcement Homeland
Security Investigations - 2,873 2,873 0%
Edward Byrne Memorial Justice Assistance Grant 52,618 52,618 0%
FY2021 Improving Criminal Justice Responses 35,254 35,254 0%
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 124,311 124,311 0%
2021-SHSP-EOD Protective Suit - 40,864 40,864 0%
2020 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant - 188,854 188,854 0%
Fire-Law Enforcement Officer Standards &
Education - 1,000 1,000 0%
Denton County Vaccine Operation Assistance 131,443 131,443 0%
Public Safety - 714,313 714,313
TxDot-CMAQ-School Connection Sidewalks - 75,520 75,520 0%
TxDot-Safe Routes to School-Ginnings Elementary
School & Lee Elementary School - 108,400 108,400 0%
Transportation - 183,920 183,920
Total New Awards - 898,233 898,233 0%
TOTALS 108,558,855$ 80,405,238$ 17,933,211$ -78%
1 A portion of the grants presented cover multiple years.
Section 3
City of Denton
Quarterly Financial Report
September 2022
REVENUE & ECONOMIC
ANALYSIS
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state
and national trends impacting the City’s financial position.
The following notes are provided to facilitate this section’s readability.
1. Positive Outlook – Represents favorable conditions for the local
economy. Color code – Green.
2. Cautious Outlook – Represents changing conditions that
require close monitoring. Color code – Yellow.
3. Negative Outlook – Represents unfavorable conditions for the
local economy. Color code – Red.
The data included in this section have been obtained from a variety of
sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City’s investment advisor, First Southwest Asset
Management.
NNationall Economicc Trendss
Period Ending September 30, 2022
Gross Domestic Product (GDP)
The initial reading of Q3 GDP showed the first
positive growth of 2022 with a +2.6% quarter-
over-quarter gain. However, there was
considerable weakness beyond the overall
number. A narrowing trade balance, resulting
from a surprisingly large increase in exports,
added 2.8 percentage points and was entirely
responsible for the Q3 expansion. If trade were
simply unchanged, Q3 GDP would have been
negative. Personal consumption, the biggest
component of GDP, contributed just a single point
to the headline, while residential investment
(housing) subtracted 1.4 percentage points. Most
analysts expect Q4 growth will be between zero
and one percent. On a year-over-year basis, the
U.S. economy grew at a +1.8% pace, matching the
previous quarter, but down sharply from the
+5.7% annual pace at the end of last year.
Employment
Nonfarm payrolls increased by +263k in
September after a +315k rise in August and a
+537k July increase. There’s a clearly a weakening
trend in place, but the Fed would like to see payroll
growth slow even more. The unemployment rate
fell from +3.7% to +3.5% returning to the lowest
point since 1969. A part of that drop was the
result of an unexpected reduction in the labor
force as 57k workers stepped to the sidelines.
Apparently, the labor force decline was
concentrated on the female side, and may have
had to do with faulty seasonal hiring adjustments
related to education workers.The most recent
JOLT survey showed job openings fell from 11.2
million to 10.1 million in August. That’s a huge
decline, but 10 million unfilled job openings are
far too many when there are less than six million
actively looking for work. The mismatch keeps
pressure on wages.
Inflation
The September CPI report was a huge
disappointment to the Fed as it ended a softening
trend. The headline rose +0.4% in September,
doubling the +0.2% median forecast. This
followed a tiny +0.1% rise in August and an
unchanged reading in July. On a year-over-year
basis, overall CPI was up +8.2%, slightly above the
+8.1% forecast. The annual rate peaked at +9.1%
in June and has declined in each of the past three
months, but at a frustratingly slow pace. Goods
spending has retreated in favor of service
spending, and the shift was clear in the
September report. Core goods prices were
unchanged in September while core services rose
+0.8%. Core CPI, which excludes food and energy
prices, climbed +0.6% in September for the
second straight month. Core consumer inflation
is now rising at a +6.6% annual rate, the hottest
reading since 1982.
Retail Sales
Headline retail sales were unchanged in
September, weaker-than-expected following a
+0.4% August reading. Seven of 13 categories
showed declines, including auto dealers (-0.6%)
and building materials stores (-0.4%). Sales at
electronics stores (-0.8%) and gas stations (-
1.4%) were also down, although much of the
decline for these two are attributed to falling
prices. Overall sales are still +8.6% higher than a
year earlier, but since this report isn’t adjusted
for inflation, sales are essentially flat on an
annual basis. The retail sales “control group”
(which excludes autos, building materials,
gasoline station receipts and food services) rose
+0.4% in September, just above the +0.3%
median forecast. Control group data feeds into
the GDP calculation, so this better-than-
expected number will contribute to stronger (or
less weak) third quarter growth.
Denton County and Texas Home Sales
Texas home sales fell -9.9% in the third quarter of 2022 and -14.8% over the same three-month period a year ago.
The average sales price in September was $411.9k, a sharp decline from the record $443k average just four months
earlier. The available inventory climbed from 2.1 months to 2.7 months during the quarter, the highest since July
2020 and well above the record low of 1.0 month from back in February. Total listings increased from at 70k to 90k,
the highest since May 2020 and significantly above the February 2022 low point of 36.k.
In Denton County, unit home sales fell -2.8% in the third quarter and were -11.9% lower on a year-over-year basis.
The available supply continued to improve from a record low of 0.5 months in January and 1.9 months in June, to
2.4 months in September. Total listings jumped from 2,542 to 3,105, the highest in over two years and more than
quadruple the number in January. The average Denton County sales price in September was $511k, significantly
below the all-time high of $587k just four months earlier.
The paper was prepared by Hilltop Securities Asset Management, is intended for educational and informational purposes only
and does not constitute legal or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or
other specific product. Information provided in this paper was obtained from sources that are believed to be reliable; however, it
is not guaranteed to be correct, complete, or current, and is not intended to imply or establish standards of care applicable to
any attorney or advisor in any particular
Fuel Prices Outlook Positive
Description: Quarterly fuel trends for the United States and Texas.
Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of
fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a
key predictor of sales tax collections. Fuel prices showed a 13.8% decrease from the prior quarter at the national
level and a 8.8% decrease at the state level. Staff has rated this outlook as positive.
Source: U.S. Department of Energy
$0
$2
$4
$6
$8
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$14
$16
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$0.50
$1.00
$1.50
$2.00
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$3.00
$3.50
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$4.50
$5.00
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1Q
'18
2Q
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3Q
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4Q
'18
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'19
2Q
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3Q
'19
4Q
'19
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2Q
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'21
2Q
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4Q
'21
1Q
'22
2Q
'22
3Q
'22
4Q
'22 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
Municipal Cost Index Outlook Negative
Description:The Municipal Cost Index was developed to show the rate of inflation for the cost of goods
purchased frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S.
Departments of Commerce and Labor as well as independently compiled data to project a composite cost picture
for the municipal budget officer or operating department manager. Costs of labor, materials and contract services
are all factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer
Price Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and
the construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis:The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine
business. The 4th Quarter of 2021‐22 shows an increase of 2.5 for a 0.81% increase over the prior quarter and an
increase of 26.8 for a 9.47% increase over the 4th Quarter of 2020‐21. Staff has rated this indicator as Negative.
Source: American City and County Magazine
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help
control price increases for commodities, make informed government contract decisions and intelligent budget planning. Since
1978, readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of
doing business as a local government.
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50.00
100.00
150.00
200.00
250.00
300.00
350.00
4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
4th Quarter FY 2021-22
Actual Y-T-D
Occupancy Tax Revenue:937,001$ 3,588,698$
FY 2021-22 Budget 945,519$ 2,875,354$
Over (Under) Budget (8,518)$ 713,344$
Hotel Occupancy Tax Budget:2,875,354$
End of Year Projection:3,515,915$
End of Year Actual:3,588,698$
713,344$
Variance - Actual to Projection 72,783$
Description:Tax imposed on a person who,under a lease,concession,permit,right of access,license,contract,or
agreement,pays for the use of a room that is in a hotel.A hotel includes:any building in which the public may obtain
sleeping accommodations;motels;a tourist home,house or court;lodging house;inn;rooming house;or bed and
breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.
Analysis:While the use of this revenue source is restricted by state law,it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity.Hotel
Occupancy tax revenue through the 4th Quarter of FY 2022 was 0.90%less than budget and 9%more than prior
year's actual.This quarter illustrated a strong increase in hotel activity since last year as the City recovers from the
COVID-19 Pandemic. Staff has rated the outlook for this economic indicator as Positive.
FISCAL YEAR FORECAST
Variance - Actual to Budget
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Sales and Use Tax Analysis Outlook Positve
4th Quarter FY 2021‐22
Actuals Y‐T‐D
Revenue: Gross Sales Tax
Municipal Operations 695,953$ 2,087,978$
General Retail & Others 14,479,643 53,244,895
Comptroller Fees (284,230) (1,044,519)
Amount Retained (278,545) (1,023,628)
Total Revenue 14,612,821$ $53,264,725
Expenses: Economic Incentives*
Economic Incentives1 740,298$ 2,941,477$
Net Total 13,872,523 50,323,248
FY 2021‐22 Budget 11,108,869 43,670,195
Over(Under) Budget 2,763,654$ 6,653,053$
Sales Tax Budget: 46,246,938$
Year End Projection: 51,992,420
Variance to Original Budget: 5,745,482$
Economic Development Expenditure Budget: 2,576,743$
Year End Projection: 2,440,609
Variance to Original Budget: (136,134)$
* Economic Incentive actuals are through Sept. 2022
1. Includes Unicorn Lake, Rayzor Ranch, Golden Triangle Mall, O'Reilly Hospitality, and Buc‐ee's.
Description:Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax
rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 4th quarter of FY 2022 compared to revenues from
the prior year 3rd quarter shows a 16.01% increase; and compared to the budget, it is 24.88% above.Staff has rated this
indicator as Positive.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
1234
Gross Sales Tax Collections (Millions)
FY 2018‐19 Actual FY 2019‐20 Actual FY 2020‐21 Actual FY 2021‐22 Actual
Certificates of Occupancy Outlook Negative
Source: City of Denton's Development Services Department.
Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2012 International Building
Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no
change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the
building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building,
zoning, fire and consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition
of the local economy. Certificates of Occupancy had no change in percantage from the prior quarter and
decreased 46.15% from the fourth quarter of 2021. Staff has rated the outlook for this revenue indicator as
Negative.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22
3Q
'22
4Q
'22
Certificates of Occupancy
Residential Permits Outlook Positive
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy. In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased from the prior quarter by 31% and increased 107% from the 4th
Quarter of 2021. Staff has rated the outlook for this revenue indicator as Positive.
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
1Q
'21
2Q
'21
3Q
'21
4Q
'21
1Q
'22
2Q
'22
3Q
'22
4Q
'22
Residential Permits
Texas Leading Indicators Index Outlook Positive
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help‐Wanted Advertising, and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows a decrease in the state's rate of growth. The index decreased by 3.64% from the prior quarter and
increased 2.85% from the fourth Quarter of 2021. Staff has rated this indicator as positive.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Texas Leading Indicators Index
Unemployment Rate Index Outlook Positive
Description:Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 3.3% for the 4th Quarter.
Since this is a decrease over the prior year's quarter rate, staff has rated the outlook indicator as Positive.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job‐market related reason for not looking currently for a job.
Persons employed part‐time for economic reasons are those who want and are available for full‐time work but have had to
settle for a part‐time schedule.
0.0
5.0
10.0
15.0
20.0
25.0
Unemployement Rate Index
Dallas‐Plano‐Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
September 2022
INVESTMENT REPORT
4th Fiscal Quarter Ending September 30, 2022 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max. Benchmark
Portfolio: Value Value Value Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 819,081,155$ 809,879,909$ 816,094,352$ (6,214,443)$ 222 550 2.45% 3.89%
*Market yield on U.S. Treasury securities at
1-year constant maturity, quoted on
investment basis % of Total
Par Market Book Unrealized Portfolio Policy
Securities By Investment Type: Value Value Value Gain/(Loss)1 WAM YTM (Book Value)2 Max.
U.S. Treasuries 330,000,000$ 324,214,380$ 328,346,157$ (4,131,777)$ 320 2.06% 40.23% 100.00%
U.S. Federal Agencies 147,300,000$ 145,010,801$ 146,804,567$ (1,793,766)$ 445 3.22% 17.99% 100.00%
U.S. Federal Agencies - Callable 10,000,000$ 9,892,668$ 10,000,000$ (107,332)$ 236 2.50% 1.23% 20.00%
Municipal Bonds -$ -$ -$ -$ - - 0.00% 15.00%
Certificates of Deposit -$ -$ -$ -$ - - 0.00% 35.00%
Commercial Paper 65,000,000$ 63,980,905$ 64,162,473$ (181,568)$ 135 2.90% 7.86% 15.00%
Local Government Investment Pools 200,000,000$ 200,000,000$ 200,000,000$ -$ 1 2.83% 24.51% 50.00%
Demand Deposits 66,781,155$ 66,781,155$ 66,781,155$ -$ 1 1.15% 8.18% -
Total Portfolio 819,081,155$ 809,879,909$ 816,094,352$ (6,214,443)$ 222 2.45% 100.00%-
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons: 9/30/2022 6/30/2022 Difference 9/30/2021
Par Value 819,081,155$ 656,943,844$ 162,137,310$ 700,953,699$
Market Value 809,879,909$ 653,540,415$ 156,339,494$ 702,828,857$
Book Value 816,094,352$ 655,280,824$ 160,813,528$ 702,125,607$
Unrealized Gain(Loss) (6,214,443)$ (1,740,408)$ (4,474,035)$ 703,249$
Weighted Average Maturity 222 201 21 115
Yield to Maturity 2.45% 1.20% 1.26% 0.24%
Portfolio Composition:
U.S. Treasuries 40.23% 50.97% -10.73% 28.48%
U.S. Federal Agencies 17.99% 14.01% 3.98% 16.05%
U.S. Agencies - Callable 1.23% 1.53% -0.30% 0.00%
Municipal Bonds 0.00% 0.00% 0.00% 0.73%
Certificates of Deposit 0.00% 0.00% 0.00% 0.00%
Commercial Paper 7.86% 3.79% 4.07% 12.81%
Local Government Investment Pools 24.51% 21.03% 3.48% 34.86%
Demand Deposits 8.18% 8.68% -0.50% 7.08%
Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 76,281,682$ 66,781,155$ > 102% 114.23%
**Does not include FDIC insurance
Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 47,573,023$ 122,709,995$ 48,602,842$
Wells Fargo Bank ARPA Funds 18,170,456$ 7,856$ 18,178,312$
Compliance Statement & Review:
107
2.22%
-0.73%
107,051,052$
113,968,745$
(6,917,692)$
11.75%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
118,127,456$
1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are realized only
when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and losses are unlikely to be
realized.
Withdrawals
The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's Investment Policy and the
Public Funds Investment Act (Texas Government Code, Chapter 2256.023).
Approver: Cassandra Ogden
1.94%
0.00%
1.10%
Pledge Required
-4.95%
-10.35%
-$
1.23%
(121,680,175)$
Controller
Reviewer:
Chief Financial Officer Assistant Director of Finance
Reviewer: Nicholas Vincent
Preparer: Randee Klingele
Treasury Manager
Vacant
4th Fiscal Quarter Ending September 30, 2022 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
9/30/2022 6/30/2022 Difference 9/30/2021 Difference
Par Value - U.S. Treasuries 330,000,000$ 335,000,000$ (5,000,000)$ 199,000,000$ 131,000,000$
Par Value - U.S. Federal Agencies 147,300,000$ 92,300,000 55,000,000 112,500,000 34,800,000
Par Value - U.S. Federal Agencies - Callable 10,000,000$ 10,000,000 - - 10,000,000
Par Value - Municipal Bonds -$ - - 5,000,000 (5,000,000)
Certificates of Deposit -$ - - - -
Par Value - Commercial Paper 65,000,000$ 25,000,000 40,000,000 90,000,000 (25,000,000)
Local Government Investment Pools 200,000,000$ 137,775,270 62,224,730 244,775,270 (44,775,270)
Demand Deposits 66,781,155$ 56,868,575 9,912,580 49,678,429 17,102,725
Total Par Value 819,081,155$ 656,943,844$ 162,137,310$ 700,953,699$ 118,127,456$
Market Value - U.S. Treasuries 324,214,380$ 332,422,735$ (8,208,355)$ 199,936,843$ 124,277,537$
Market Value - U.S. Federal Agencies 145,010,801$ 91,779,177$ 53,231,624 113,364,650$ 31,646,151
Market Value - U.S. Federal Agencies - Callable 9,892,668$ 9,964,326$ (71,658) -$ 9,892,668
Market Value - Municipal Bonds -$ -$ - 5,088,900$ (5,088,900)
Certificates of Deposit -$ -$ - -$ -
Market Value - Commercial Paper 63,980,905$ 24,730,333$ 39,250,573 89,984,765$ (26,003,860)
Local Government Investment Pools 200,000,000$ 137,775,270$ 62,224,730 244,775,270$ (44,775,270)
Demand Deposits 66,781,155$ 56,868,575$ 9,912,580 49,678,429$ 17,102,725
Total Market Value 809,879,909$ 653,540,415.29$ 156,339,494$ 702,828,857$ 107,051,052$
Book Value - U.S. Treasuries 328,346,157$ 333,987,990$ (5,641,833)$ 199,950,655$ 128,395,502.12$
Book Value - U.S. Federal Agencies 146,804,567$ 91,819,835$ 54,984,732 112,659,269 34,145,299
Book Value - U.S. Federal Agencies - Callable 10,000,000$ 10,000,000$ - - 10,000,000
Book Value - Municipal Bonds -$ -$ - 5,091,127 (5,091,127)
Certificates of Deposit -$ -$ - - -
Book Value - Commercial Paper 64,162,473$ 24,829,153$ 39,333,319 89,970,858 (25,808,385)
Local Government Investment Pools 200,000,000$ 137,775,270$ 62,224,730 244,775,270 (44,775,270)
Demand Deposits 66,781,155$ 56,868,575$ 9,912,580 49,678,429 17,102,725
Total Book Value 816,094,352$ 655,280,824$ 160,813,528$ 702,125,607$ 113,968,745$
Accrued Interest 1,903,047$ 1,083,307$ 819,740$ 746,720$ 1,156,327$
Cash Value -811,782,956$ 654,623,722$ 157,159,233$ 703,575,577$ 108,207,379$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)1 (6,214,443)$ (1,740,408)$ (4,474,035)$ 703,249$ (6,917,692)$
Strategy Statement:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are
realized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and
losses are unlikely to be realized.
The investment portfolio is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee
income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet anticipated daily
cash needs for the City's operations, capital projects and debt service. In order to meet these obligations and to minimize potential liquidation
losses, the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The objectives of this portfolio
are to: (1) ensure safety of principal by investing in only high quality securities for which a strong secondary market exists; (2) ensure that
anticipated cash flow needs are matched with adequate investment liquidity; (3) limit market and credit risk through diversification; and (4) attainthe
best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by actively managing the portfolio to meet
or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the Federal Reserve Statistical Release H.15 for
constant maturities.
4th Fiscal Quarter Ending September 30, 2022 Page 3
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 9/30/2022 6/30/2022 9/30/2021
U.S. Treasuries 328,346,157$ 333,987,990$ 199,950,655$
U.S. Federal Agencies 146,804,567 91,819,835 112,659,269
U.S. Federal Agencies - Callable 10,000,000 10,000,000 -
Municipal Bonds - - 5,091,127
Certificates of Deposit - - -
Commercial Paper 64,162,473 24,829,153 89,970,858
Local Government Investment Pools 200,000,000 137,775,270 244,775,270
Demand Deposits 66,781,155 56,868,575 49,678,429
Total Book Value 816,094,352$ 655,280,824$ 702,125,607$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 9/30/2022 6/30/2022 9/30/2021
U.S. Treasuries 40.23% 50.97% 28.48%
U.S. Federal Agencies 17.99% 14.01% 16.05%
U.S. Federal Agencies - Callable 1.23% 1.53% 0.00%
Municipal Bonds 0.00% 0.00% 0.73%
Certificates of Deposit 0.00% 0.00% 0.00%
Commercial Paper 7.86% 3.79% 12.81%
Local Government Investment Pools 24.51% 21.03% 34.86%
Demand Deposits 8.18% 8.68% 7.08%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); municipal bonds rated AA or better (maturing in less than
three years); insured, collateralized, or standby letter of credit backed certificates of deposit (maturing in less than three years); collateralized repurchase
agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or better (maturing in less than 270 days); and local government pools & SEC
registered government money market mutual funds (weighted average maturity of less than 60 days).
U.S.Treasuries
40.23%
U.S.FederalAgencies
17.99%
U.S.FederalAgenciesͲ Callable
1.23%
CommercialPaper
7.86%
LocalGovernmentInvestmentPools
24.51%
DemandDeposits
8.18%9/30/2022
4th Fiscal Quarter Ending September 30, 2022 Page 4
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Issuer: 9/30/2022 6/30/2022 9/30/2021
FFCB 42,092,698$ 37,056,477$ 62,502,349$
FHLB 109,792,283 59,869,713 35,123,715$
FHLMC - - 4,999,342$
FNMA 4,919,585 4,893,645 10,033,863$
BAYLOR SCOTT - - 9,999,600$
JOHNS HOPKINS UNIVERSITY - - 9,999,942$
JP MORGAN CP 19,464,833 - -$
RBC 17,477,767 17,425,697 17,488,576$
STATE OF CALIFORNIA - - 20,000,000$
NORTHWEST ISD, TX - - 5,091,127$
TEXPOOL 150,000,000 100,000,000 115,000,000$
TEXSTAR 50,000,000 37,775,270 129,775,270$
TOYOTA MOTOR CREDIT CORP 27,219,873 7,403,456 7,493,656$
U.S. TREASURY 328,346,157 333,987,990 199,950,655$
UNIVERSITY OF TEXAS - - 24,989,083$
WELLS FARGO DEMAND DEPOSITS 66,781,155 56,868,575 49,678,429$
Total Book Value 816,094,352$ 655,280,824$ 702,125,607$
Summary By Issuer: 9/30/2022 6/30/2022 9/30/2021
FFCB 5.16% 5.66% 8.90%
FHLB 13.45% 9.14% 5.00%
FHLMC 0.00% 0.00% 0.71%
FNMA 0.60% 0.75% 1.43%
BAYLOR SCOTT 0.00% 0.00% 1.42%
JOHNS HOPKINS UNIVERSITY 0.00% 0.00% 1.42%
JP MORGAN CP 2.39% 0.00% 0.00%
RBC 2.14% 2.66% 2.49%
STATE OF CALIFORNIA 0.00% 0.00% 2.85%
NORTHWEST ISD, TX 0.00% 0.00% 0.73%
TEXPOOL 18.38% 15.26% 16.38%
TEXSTAR 6.13% 5.76% 18.48%
TOYOTA MOTOR CREDIT CORP 3.34% 1.13% 1.07%
U.S. TREASURY 40.23% 50.97% 28.48%
UNIVERSITY OF TEXAS 0.00% 0.00% 3.56%
WELLS FARGO DEMAND DEPOSITS 8.18% 8.68% 7.08%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value and to those offering
repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. The purpose of this requirement is to
limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no issuer limitations on U.S. Treasuries or FDIC insured products
except as they pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some investment types may be further limited.
FFCB
5.16%FHLB
13.45%
FNMA
0.60%
RBC
2.14%
TEXPOOL
18.38%
JPMORGANCP
2.39%
TEXSTAR
6.13%TOYOTAMOTORCREDIT
CORP
3.34%
U.S.TREASURY
40.23%
WELLSFARGODEMAND
DEPOSITS
8.18%
4th Fiscal Quarter Ending September 30, 2022 Page 5
INVESTMENT POOL
(Based on Par Value)
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 9/30/2022 6/30/2022 9/30/2021
00-03 Months 326,781,155$ 294,643,844$ 390,953,699$
03-06 Months 120,000,000 60,000,000 120,000,000
06-12 Months 152,300,000 147,300,000 165,000,000
12-24 Months 220,000,000 155,000,000 25,000,000
24 Months & Over - -
Total Par Value 819,081,155$ 656,943,844$ 700,953,699$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 9/30/2022 6/30/2022 9/30/2021
00-03 Months 39.90% 44.85% 55.77%
03-06 Months 14.65% 9.13% 17.12%
06-12 Months 18.59% 22.42% 23.54%
12-24 Months 26.86% 23.59% 3.57%
24 Months & Over 0.00% 0.00% 0.00%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows based on
the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements and by investing in
securities with active secondary markets. Short-term local government investment pools and government money market mutual funds help to
provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
$800,000,000
$850,000,000
$900,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
4th Fiscal Quarter Ending September 30, 2022 Page 6
ECONOMIC SUMMARY
Interest Rate History
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
Market Sector:*Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90% 2.15% 2.40% 2.41% 2.37% 1.90%
3-Month U.S. T-Bill 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92% 2.20% 2.36% 2.39% 2.09% 1.82%
2-Year U.S. T-Note 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53% 2.57% 2.49% 2.26% 2.10% 1.76%
Portfolio Benchmark (FRB) 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75% 2.05% 2.33% 2.48% 2.00% 1.80%
Portfolio Yield 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73% 2.01% 2.20% 2.20% 2.08%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
Market Sector:*Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 1.56% 0.02% 0.08% 0.09% 0.08% 0.06% 0.05% 0.05% 0.07%0.32% 1.56% 3.05%
3-Month U.S. T-Bill 1.55% 0.09% 0.14% 0.10% 0.07% 0.02% 0.04% 0.04% 0.04%0.50% 1.67% 3.27%
2-Year U.S. T-Note 1.57% 0.25% 0.15% 0.13% 0.12% 0.15% 0.25% 0.21% 0.38%1.61% 2.96% 4.28%
Portfolio Benchmark (FRB) 1.55% 0.33% 0.18% 0.13% 0.12% 0.08% 0.07% 0.08% 0.30%1.34% 2.65% 3.89%
Portfolio Yield 1.96% 1.62% 1.31% 0.94% 0.80% 0.45% 0.38% 0.24% 0.17%0.39% 1.20% 2.45%
*Source: Hilltop Securities
*1yr const mty.
Fiscal Year:
2021-2022
2020-2021
2019-2020
2018-2019
2017-2018
QUARTERLY COMMENTARY
Staff Analysis
9,330,232$ 7,751,129$ 5,750,008$
2nd Quarter
5,537,498$
3rd Quarter 4th Quarter
The portfolio is in compliance with the City's Investment Policy. During the third quarter eight investments matured totaling $100
million and sixteen investments were purchased totaling $190 million. The portfolio's weighted average yield lagged the
benchmark 12-month Treasury bill index by 144 basis points. This benchmark lag is due to a sudden spike in short-term rates
caused by Fed tightening during the July - September months. The Investments and deposits with daily liquidity was 32.57%. This
period the Fed raised the target range for the federal funds rate two times, 75 bp's in July and 75 bp's in September. They also
continued reducing their bond holdings. Staff will continue to monitor the investment portfolio and ensure compliance with the
City's Investment Policy and the Public Funds Investment Act.
Fiscal Year 2019-2020
2,955,835$ 12,354,692$
6,515,166$ 8,955,045$ 2,138,420$ 4,317,890$
3 Months 6 Months 9 Months 12 Months
1,324,344$ 2,332,128$ 2,937,508$ 3,413,936$
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2016-2017 Fiscal Year 2017-2018
Fiscal Year-to-Date Earnings
Fiscal Year 2018-2019
Fiscal Year 2020-2021 Fiscal Year 2021-2022
6,122,536$ 9,262,499$
2,982,157$
388,020$
1st Quarter
753,874$ 1,884,695$
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Dec-
Sep-
18
Dec-
18
Mar-
19
Jun-
19
Sep-
19
Dec-
19
Mar-
20
Jun-
20
Sep-
20
Dec-
20
Mar-
21
Jun-
21
Sep-
21
Dec-
21
Mar-
22
Jun-
22
Sep-
22
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2016-17 FY 2017-18 FY 2018-19 FY 2020-21 FY 2021-22FY 2019-20
Days to
Maturity
Page 1
Par Value Book Value
Maturity
Date
Stated
RateMarket Value
September 30, 2022
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
Treasury Securities - Coupon
30U.S. TREASURY4125 5,000,000.00 5,000,128.31 10/31/20220.12509/15/2021 4,989,935.00 0.09491282CAR2
45U.S. TREASURY4126 10,000,000.00 10,018,755.61 11/15/20221.62509/23/2021 9,982,180.00 0.101912828TY6
75U.S. TREASURY4127 10,000,000.00 10,030,127.99 12/15/20221.62510/18/2021 9,969,930.00 0.156912828YW4
137U.S. TREASURY4128 10,000,000.00 10,043,695.23 02/15/20231.37510/18/2021 9,910,550.00 0.206912828Z86
165U.S. TREASURY4132 10,000,000.00 10,001,817.55 03/15/20230.50012/09/2021 9,850,780.00 0.460912828ZD5
137U.S. TREASURY4134 20,000,000.00 20,068,696.28 02/15/20232.00003/03/2022 19,874,220.00 1.077912828UN8
75U.S. TREASURY4135 10,000,000.00 10,014,291.16 12/15/20221.62503/03/2022 9,969,930.00 0.924912828YW4
122U.S. TREASURY4136 20,000,000.00 19,939,502.25 01/31/20230.12503/03/2022 19,768,420.00 1.03791282CBG5
150U.S. TREASURY4137 20,000,000.00 19,913,599.05 02/28/20230.12503/11/2022 19,705,460.00 1.18591282CBN0
196U.S. TREASURY4139 20,000,000.00 19,851,623.06 04/15/20230.25003/24/2022 19,610,160.00 1.649912828ZH6
137U.S. TREASURY4140 20,000,000.00 19,981,870.93 02/15/20231.37504/14/2022 19,821,100.00 1.619912828Z86
257U.S. TREASURY4144 10,000,000.00 9,856,090.29 06/15/20230.25005/05/2022 9,733,590.00 2.332912828ZU7
287U.S. TREASURY4146 10,000,000.00 9,836,232.38 07/15/20230.12506/02/2022 9,687,110.00 2.244912828ZY9
608U.S. TREASURY4148 10,000,000.00 9,883,071.83 05/31/20242.50006/14/2022 9,712,890.00 3.23191282CER8
318U.S. TREASURY4151 20,000,000.00 19,915,804.00 08/15/20232.50006/22/2022 19,703,900.00 2.993912828VS6
502U.S. TREASURY4153 10,000,000.00 9,946,017.31 02/15/20242.75006/22/2022 9,788,280.00 3.155912828B66
395U.S. TREASURY4154 10,000,000.00 9,984,255.42 10/31/20232.87506/28/2022 9,852,340.00 3.0239128285K2
425U.S. TREASURY4155 10,000,000.00 9,982,440.66 11/30/20232.87506/28/2022 9,836,330.00 3.0299128285P1
502U.S. TREASURY4156 20,000,000.00 19,916,569.83 02/15/20242.75006/28/2022 19,576,560.00 3.063912828B66
577U.S. TREASURY4157 10,000,000.00 9,906,087.24 04/30/20242.50006/28/2022 9,724,220.00 3.11591282CEK3
516U.S. TREASURY4159 10,000,000.00 9,909,417.88 02/29/20242.37507/26/2022 9,737,500.00 3.0359128286G0
684U.S. TREASURY4160 10,000,000.00 9,883,305.59 08/15/20242.37507/26/2022 9,659,770.00 3.022912828D56
669U.S. TREASURY4165 10,000,000.00 9,802,463.49 07/31/20242.12508/10/2022 9,623,050.00 3.2489128282N9
684U.S. TREASURY4166 10,000,000.00 9,842,809.53 08/15/20242.37508/10/2022 9,659,770.00 3.249912828D56
502U.S. TREASURY4168 20,000,000.00 19,847,722.07 02/15/20242.75008/18/2022 19,576,560.00 3.323912828B66
669U.S. TREASURY4169 5,000,000.00 4,969,762.18 07/31/20243.00008/18/2022 4,889,845.00 3.34391282CFA4
328,346,157.12 2.060324,214,380.00330,000,000.00337,631,927.85Subtotal and Average 320
Federal Agency Issues - Coupon
324FFCB401310,000,000.00 9,999,822.22 08/21/20232.57002/21/2019 9,851,757.90 2.5723133EKAU0
250FFCB41457,300,000.00 7,208,835.26 06/08/20230.30005/23/2022 7,111,482.76 2.1503133ELG81
618FFCB414910,000,000.00 9,896,487.83 06/10/20242.62506/16/2022 9,733,118.40 3.2623133ENYH7
522FFCB417215,000,000.00 14,987,553.17 03/06/20243.62509/06/2022 14,845,132.35 3.6853133ENK33
342FHLB415220,000,000.00 19,868,600.92 09/08/20232.37506/22/2022 19,661,946.60 3.0943130A3DL5
433FHLB415810,000,000.00 10,028,768.92 12/08/20233.37506/30/2022 9,879,528.80 3.1243130A0F70
524FHLB416110,000,000.00 10,027,360.14 03/08/20243.25007/26/2022 9,847,497.10 3.0523130A0XE5
Portfolio CITY
APData Updated: SET_MO: 10/10/2022 10:23
Run Date: 10/10/2022 - 10:24 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.1
Days to
Maturity
Page 2
Par Value Book Value
Maturity
Date
Stated
RateMarket Value
September 30, 2022
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
Federal Agency Issues - Coupon
307FHLB416410,000,000.00 9,980,305.00 08/04/20233.00008/04/2022 9,902,155.00 3.2403130ASV55
433FHLB416720,000,000.00 20,015,017.37 12/08/20233.37508/16/2022 19,759,057.60 3.3073130A0F70
713FHLB417010,000,000.00 9,958,109.54 09/13/20243.25008/29/2022 9,798,847.30 3.4743130AFBC0
622FHLB417110,000,000.00 9,939,066.85 06/14/20243.12508/29/2022 9,802,791.50 3.4963130ASHK8
349FHLB417410,000,000.00 9,975,054.44 09/15/20233.87509/16/2022 9,961,103.10 4.1443130ATDJ3
282FNMA41475,000,000.00 4,919,585.47 07/10/20230.25006/08/2022 4,856,382.40 2.3643135G05G4
146,804,567.13 3.222145,010,800.81147,300,000.00144,299,961.90Subtotal and Average 445
Federal Agency Issue-Step-Up
236FHLB414310,000,000.00 10,000,000.00 05/25/20232.00005/27/2022 9,892,668.40 2.5003130ARYL9
10,000,000.00 2.5009,892,668.4010,000,000.0010,000,000.00Subtotal and Average 236
Commercial Paper Disc. - Amortizing
247JP MORGAN SECURITIES LLC4173 20,000,000.00 19,464,833.34 06/05/20233.90009/09/2022 19,393,220.00 4.09846640QT50
24RBC413310,000,000.00 9,995,066.67 10/25/20220.74001/31/2022 9,978,580.00 0.76278009BKR2
48RBC41417,500,000.00 7,482,700.00 11/18/20221.73004/19/2022 7,466,407.50 1.79978009BLJ9
79TOYOTA MOTOR CREDIT4150 7,500,000.00 7,455,397.92 12/19/202206/22/2022 7,440,997.50 2.78589233HMK7
150TOYOTA MOTOR CREDIT4162 10,000,000.00 9,868,333.34 02/28/202308/02/2022 9,831,800.00 3.32689233HPU2
121TOYOTA MOTOR CREDIT4163 10,000,000.00 9,896,141.67 01/30/202308/02/2022 9,869,900.00 3.18289233HNW0
64,162,472.94 2.89863,980,905.0065,000,000.0058,913,600.70Subtotal and Average 135
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXPOOL3996 150,000,000.00 150,000,000.00 2.847150,000,000.00 2.847SYS3996
1LOCAL GOVT INV POOL - TEXSTAR3641 50,000,000.00 50,000,000.00 2.76750,000,000.00 2.767SYS3641
200,000,000.00 2.827200,000,000.00200,000,000.00188,133,333.33Subtotal and Average 1
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 48,602,842.42 48,602,842.42 1.15048,602,842.42 1.150SYS3706
1DEMAND DEPOSITS - WELLS FARGO4082 0.00 0.0010/01/2021 0.00 0.000SYS4082
1DEMAND DEPOSITS - WELLS FARGO4104 18,178,312.31 18,178,312.31 1.15018,178,312.31 1.150SYS4104
66,781,154.73 1.15066,781,154.7366,781,154.7363,465,094.05Subtotal and Average 1
Portfolio CITY
APData Updated: SET_MO: 10/10/2022 10:23
Run Date: 10/10/2022 - 10:24 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 3
Par Value Book Value
Stated
RateMarket Value
September 30, 2022
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
2.454802,443,917.83 819,081,154.73 222809,879,908.94 816,094,351.92Total and Average
Portfolio CITY
APData Updated: SET_MO: 10/10/2022 10:23
Run Date: 10/10/2022 - 10:24 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 4
Par Value Book Value
Stated
RateMarket Value
September 30, 2022
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #
Purchase
Date
0.00
2.454802,443,917.83 819,081,154.73 222
0Average Balance
809,879,908.94 816,094,351.92Total Cash and Investments
Portfolio CITY
APData Updated: SET_MO: 10/10/2022 10:23
Run Date: 10/10/2022 - 10:24 PM (PRF_PM2) 7.3.0