The URL can be used to link to this page

2018-022 1st Quarter Financial Report'DWH0DUFK 5HSRUW1R INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: 4XDUWHUO\)LQDQFLDO5HSRUWIRUWKHSHULRGHQGLQJ'HFHPEHU BACKGROUND: $WWDFKHGIRU\RXUUHYLHZLVWKH4XDUWHUO\)LQDQFLDO5HSRUWIRUWKHSHULRGHQGLQJ'HFHPEHU ,I\RXKDYHDQ\TXHVWLRQVRUQHHGDGGLWLRQDOLQIRUPDWLRQSOHDVHOHWPHNQRZ STAFF CONTACT: $QWRQLR3XHQWH-U'LUHFWRURI)LQDQFH $QWRQLR3XHQWH#FLW\RIGHQWRQFRP About This Quarterly Financial Report 7KLV UHSRUW KDV EHHQ SUHSDUHG E\ WKH &LW\ RI 'HQWRQ¶V )LQDQFH 'HSDUWPHQW7KH4XDUWHUO\)LQDQFLDO5HSRUWLVLQWHQGHGWRSURYLGH RXUXVHUVLQWHUQDODQGH[WHUQDOZLWKLQIRUPDWLRQUHJDUGLQJWKH&LW\¶V ILQDQFLDO SRVLWLRQ DQG HFRQRPLF DFWLYLW\ 7KLV UHSRUW LQFOXGHV LQIRUPDWLRQIRUWKHTXDUWHUHQGLQJ'HFHPEHU 7KLVUHSRUWLVSUHVHQWHGLQVL[VHFWLRQV 7KHExecutive Dashboard VHFWLRQ FRQWDLQV D KLJK OHYHO VXPPDU\ RI WKH PDMRU RSHUDWLQJ IXQGV XVLQJ JUDSKLF LOOXVWUDWLRQVDQGNH\HFRQRPLFLQGLFDWRUV1DUUDWLYHGLVFORVXUHV DUH DOVR LQFOXGHG WR KLJKOLJKW DQ\ VLJQLILFDQW FKDQJHV RU IOXFWXDWLRQV 7KHFinancial Summary VHFWLRQUHSRUWVWKHSHUIRUPDQFHRIWKH PDMRU RSHUDWLQJ IXQGV RI WKH &LW\ ,Q DGGLWLRQ WKH UHSRUW SURYLGHV DQ HQG RI \HDU SURMHFWLRQ DQG D FRPSDULVRQ WR WKH EXGJHWIRUPDMRUUHYHQXHVRXUFHVDQGH[SHQGLWXUHLWHPV 7KHRevenue & Economic AnalysisVHFWLRQSURYLGHVDGGLWLRQDO DQDO\VLV UHJDUGLQJ NH\ UHYHQXH VRXUFHV DQG HFRQRPLF LQGLFDWRUV 7KHQuarterly Investment ReportVHFWLRQSURYLGHVDVXPPDU\ RIWKH&LW\¶VLQYHVWPHQWSRUWIROLRLQWHUHVWHDUQLQJVDQGDEULHI PDUNHWRXWORRN 7KHPerformance Report VHFWLRQ SURYLGHV .H\ 3HUIRUPDQFH ,QGLFDWRUV.3,VIRUHDFKRIWKHJRDOVLGHQWLILHGLQWKH&LW\¶V VWUDWHJLFSODQ,QDGGLWLRQWKHSURJUHVVRQ.H\$FWLRQ6WHSV DUHKLJKOLJKWHG 7KH4XDUWHUO\)LQDQFLDO5HSRUWLVLQWHQGHGWRSURYLGHRXUXVHUVZLWK WLPHO\ DQG UHOHYDQW LQIRUPDWLRQ 3OHDVH SURYLGH XV ZLWK DQ\ FRPPHQWVRUVXJJHVWLRQV\RXPD\KDYH,I\RXZRXOGOLNHDGGLWLRQDO LQIRUPDWLRQIHHOIUHHWRFRQWDFWPH $QWRQLR3XHQWH-U 'LUHFWRURI)LQDQFH (DVW0F.LQQH\6WUHHW 'HQWRQ7; 6HFWLRQ1 &LW\RI'HQWRQ 4XDUWHUO\)LQDQFLDO5HSRUW 'HFHPEHU Executive Dashboards Note:Allfigurespresentedareinmillionsofdollars.FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Fund Balance as of 09/30/17 28.17$ 31.77$ RESOURCES: Ad Valorem Taxes 45.06 45.06 0% Sales Tax 36.18 36.18 0% Franchise Fees 4.99 4.99 0% Other Taxes 0.49 0.49 0% Service Fees 8.27 8.27 0% Fines and Fees 3.96 3.96 0% Licenses and Permits 2.73 2.73 0% Miscellaneous Revenue 1.99 1.99 0% Transfers In 16.05 16.05 0%Total Revenues 119.72 119.72 0%Total Resources 147.89 151.49 EXPENDITURES : Personal Service 84.59 84.59 0% Material and Supplies 3.10 3.10 0% Maintenance and Repairs 2.98 2.98 0% Insurance 1.21 1.21 0% Miscellaneous 1.16 1.16 0% Operations 15.94 15.94 0% Transfers Out 12.81 12.81 0% Fixed Assets 0.59 0.59 0%Total Expenditures 122.38 122.38 0%Net Income (Loss) (2.66) (2.66) Ending Fund Balance 25.51$ 29.11$ &LW\RI'HQWRQ7H[DVGeneral Fund Executive Dashboard$Ͳ$5$10$15$20$25$30$35$40$45Revenue & Expenses (in Millions)YTDRevenueYTDExpensesKeyTrends¾Atthispointinthefiscalyear,revenuesandexpendituresareprojectedtomeetbudgetedlevels.¾BudgetamendedonJanuary9,2018for$2.695MtofundoneͲtimecapitalprojectsasaresultofbetterthananticipatedresultsforFY2016Ͳ17.$Ͳ$0.5$1.0$1.5$2.0$2.5$3.0$3.5Sales Tax Monthly Average by Quarter1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess. Note:Allfigurespresentedareinmillionsofdollars.&LW\RI'HQWRQ7H[DVElectric Fund Executive DashboardDESCRIPTIONFY 2017-18 ANNUAL BUDGET 1FY 2017-18 ANNUAL PRO JEC TIO NS FY 2017-18 VARIANCEBeginning Working Capital and Reserves as of 9/30/17 72.51$ 76.94$ RESOURCES: Operating Revenues 173.23 173.23 0% Non-operating Revenues 0.45 0.45 0%Total Revenues 173.68 173.68 0%Total Re sou rce s 246.19 250.62 EXPENDITURES : Purchased Power 84.55 84.55 0% Operation and Maintenance 47.20 47.20 0% Non-Operating Expenditures 49.15 49.15 0%Total Expenditures 180.90 180.90 0%Net Income (Loss) (7.22) (7.22) En di n g W ork i n g C api tal and Reserves 65.29$ 69.72$ $0$5$10$15$20$25$30$35$40$45$50OctͲ17 NovͲ17 DecͲ17Revenue&Expenses(inMillions)YTDRevenueYTDExpenseKeyTrends¾Atthispointinthefiscalyear,revenuesandexpensesareprojectedtomeetbudgetedlevels.0501001502002503003504004505001Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q182013– 2018HistoricalQuarterlyGWHSales1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess. Note:Allfigurespresentedareinmillionsofdollars.FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTIONBUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17220.85$ 23.34$ RESOURCES: Water Sales 37.12 37.12 0% Other Water Revenues 0.98 0.98 0% Transfers In 5.95 5.95 0% Impact Fee Revenue 3.75 3.75 0%Total Revenues 47.80 47.80 0%Total Resources 68.65 71.14 EXPENDITURES: Personal Service 11.41 11.41 0% Operations, Services 11.22 11.22 0% Capital Outlay 9.06 9.06 0% Debt Service 12.64 12.64 0% Transfers Out 3.47 3.47 0%Total Expenditures 47.80 47.80 0%Net Income (Loss) - - Ending Working Capital and Reserves 20.85$ 23.34$ 05001,0001,5002,0002,5003Q121Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q182012Ͳ2017HistoricalQuarterlyGallonsSold(inMillions)&LW\RI'HQWRQ7H[DVWater Fund Executive Dashboard$Ͳ$2$4$6$8$10$12$14$16OctͲ17 NovͲ17 DecͲ17Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾Atthispointinthefiscalyear,expendituresandrevenuesareprojectedtomeetbudgetedlevels.1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess.2TheBeginningWorkingCapitalbalanceexcludes$6.7MofImpactFeeReservesand$0.25millionforDevelopmentPlanLineReserves. FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTIONBUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17215.93$ 17.86$ RESOURCES: Wastewater Fees 24.14 24.14 0% Other Wastewater Revenue 1.76 1.76 0% Drainage Fees 4.67 4.67 0% Transfer In 0.66 0.66 0% Impact Fee Revenue 2.00 2.00 0%Total Revenues 33.23 33.23 0%Total Resources 49.16 51.09 EXPENDITURES: Personal Service 8.10 8.10 0% Operations, Services 8.59 8.59 0% Capital Outlay 6.87 6.87 0% Debt Service 7.17 7.17 0% Transfer Out 3.29 3.29 0%Total Expenditures 34.02 34.02 0%Net Income (Loss) (0.79) (0.79) Ending Working Capital and Reserves 15.14$ 17.07$ Note:Allfigurespresentedareinmillionsofdollars.02004006008001,0001,2003Q121Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q182012Ͳ2017HistoricalQuarterlyGallonsBilled(inMillions)&LW\RI'HQWRQ7H[DVWastewater Fund Executive Dashboard$Ͳ$2$4$6$8$10$12OctͲ17 NovͲ17 DecͲ17Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾Atthispointinthefiscalyear,revenuesandexpendituresareprojectedtomeetbudgetedlevels.1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess.2TheBeginningWorkingCapitalbalanceexcludes$2.2millionofImpactFeeReserves,$1.0millionforDrainageReserves,and$0.33millionforDevelopmentPlanLineReserves. FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET PROJECTION VARIANCEREVENUES: Residential Drainage Fees 1.78$ 1.78$ 0% Nonresidential Drainage Fees 2.90 2.90 0% Wastewater Resources 0.04 0.04 0% General Fund Transfer 0.42 0.42 0%Total Revenues 5.14 5.14 0%EXPENDITURES: Personal Service 1.78 1.78 0% Operations, Services 0.80 0.80 0% Capital Outlay 1.28 1.28 0% Debt Service 0.68 0.68 0% Transfer Out 0.60 0.60 0%Total Expenditures 5.14 5.14 0%Net Income (Loss) -$ -$ Note:Allfigurespresentedareinmillionsofdollars.&LW\RI'HQWRQ7H[DVDrainage Operations Executive Dashboard$Ͳ$0.2$0.4$0.6$0.8$1.0$1.2$1.4OctͲ17 NovͲ17 DecͲ17Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾Atthispointinthefiscalyear,expendituresandrevenuesareprojectedtomeetbudgetedlevels. FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/1728.15$ 9.47$ RESOURCES: Collection & Disposal 35.86 35.86 0% Recycling 0.87 0.87 0% Other Revenue 1.29 1.29 0%Total Revenues 38.02 38.02 0%Total Resources 46.17 47.49 EXPENDITURES: Personal Service 11.68 11.68 0% Operations, Services 11.51 11.51 0% Capital Outlay 2.67 2.67 0% Debt Service 9.70 9.70 0% Transfer Out 2.97 2.97 0%Total Expenditures 38.53 38.53 0%Net Income (Loss) (0.51) (0.51) Endi n g W ork i ng C api tal and Reserves 7.64$ 8.96$ 01,0002,0003,0004,0005,0006,0007,0002016Qtr22016Qtr32016Qtr42017Qtr12017Qtr22017Qtr32017Qtr42018Qtr1RefuseTonnageRecyclingTonnagesResidential CurbsideCollection TonnageNote:Allfigurespresentedareinmillionsofdollars.&LW\RI'HQWRQ7H[DVSolid Waste Fund Executive DashboardKeyTrends¾Expendituresandrevenueshavebeenreflectedatbudget,butstaffanticipatessignificantreductionsinexpendituresasaresultofvariousoperationalchanges.AdetaileddiscussionaboutthesereductionsisscheduledforMarch2018withtheCityCouncil.05,00010,00015,00020,00025,00030,0002016Qtr22016Qtr32016Qtr42017Qtr12017Qtr22017Qtr32017Qtr42018Qtr1CommercialRefuse&Recycling(Front&SideLoad)CubicYardsServicedperWeekCommercialRefuseCommercialRecycling1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess.2TheBeginningWorkingCapitalandReservesexcludes$8.65millionofLandfillClosure/PostClosurereserves. &LW\RI'HQWRQ7H[DVAirport Fund Executive DashboardKeyTrends¾$WWKLVSRLQWLQWKHILVFDO\HDUDOOUHYHQXHVDQGH[SHQGLWXUHVDUHSURMHFWHGWREHDWEXGJHW$0.0$1.0$2.0$3.0$4.0$5.02009 2010 2011 2012 2013 2014 2015 2016 2017 2018GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing)1RWH$OOILQDQFLDODPRXQWVSUHVHQWHGDUHLQPLOOLRQVRIGROODUVFY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17 2.47$ 2.75$ RESOURCES: Airport Ground Leases 0.71 0.71 0% FBO Commissions 0.20 0.20 0% Miscellaneous 0.09 0.09 0%Total Operating Revenues 1.00 1.00 0%EXPENDITURES: Personal Service 0.53 0.53 0% Operations, Services 0.41 0.41 0% Transfer Out 0.55 0.55 0%Total Operating Expenditures 1.49 1.49 0%Net Operating Income (Loss) (0.49) (0.49) NON-OPERATING REVENUES: Investment Income 0.03 0.03 0% Gas Well Royalties 0.47 0.47 0%Total Non-Operating Revenues 0.50 0.50 0%NON-OPERATING EXPENDITURES: Transfer Out - Capital 0.22 0.22 0%Total Non-Operating Expenditures 0.22 0.22 0%Net Non-Operating Income (Loss) 0.28 0.28 Net Income (Loss) (0.21) (0.21) Ending Working Capital and Reserves 2.26$ 2.54$ 1Annualadoptedbudgetasamendedormodified.BeginningWorkingCapitalandReservesrepresentstheamountwhichwasestimatedintheFY2017Ͳ18budgetprocess. FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/2017 1.25$ 1.16$ RESOURCES: Franchise Fees 12.47 12.47 0% Street Cuts 0.36 0.36 0% Investment Income 0.01 0.01 0% Transfers In 1.12 1.12 0%Total Revenues 13.96 13.96 0%Total Resources 15.21 15.12 EXPENDITURES: Personal Service 3.44 3.44 0% Materials & Supplies 0.09 0.09 0% Maintenance & Repairs 8.04 8.04 0% Operations, Services 0.76 0.76 0% Transfer Out 1.63 1.63 0%Total Expe n di tu re s 13.96 13.96 0%Net Income (Loss) - - Ending Fund Balance 1.25$ 1.16$ $QQXDODGRSWHGEXGJHWDVDPHQGHGRUPRGLILHG%HJLQQLQJ)XQG%DODQFHUHSUHVHQWVWKHDPRXQWZKLFKZDVHVWLPDWHGLQWKH)<EXGJHWSURFHVV&LW\RI'HQWRQ7H[DVStreet Improvement Fund Executive DashboardKeyTrends¾Atthispointinthefiscalyear,revenuesandexpendituresareprojectedtomeetbudgetedlevels.¾Nosurfacetreatmentswerecompletedinthe1stquarterduetocoldweather.Note:Allfigurespresentedareinmillionsofdollars.4WUTons of Asphalt Laid (in Thousands))<)<4WULane Miles Surface Treatment)<)<2FW 1RY 'HFRevenue & Expenses (in Millions)<7'5HYHQXH<7'([SHQVHV FY 2017-18 FY 2017-18GRANT ANNUAL FY 2017-18DESCRIPTION AMOUNT PROJECTION VARIANCE2017-18 Budget Comm Development12.94$ 1.05$ -64% Public Safety 0.80 0.80 0% Transportation195.14 26.98 -72% Other 0.03 0.03 0%Total Budge t 98.91 28.86 -71%New Awards Public Safety 0.06 0.06 0% Transportation13.39 1.48 -56% Parks & Recreation 0.21 0.21 0%Total New Awards 3.66 1.75 -52%Totals 102.57$ 30.61$ -70%COMMDEV2.87%PUBLICSAFETY0.83%TRANS96.06%PARKS&REC0.21%OTHER0.03%FY2017Ͳ18GrantsAwarded$Ͳ$20.0$40.0$60.0$80.0$100.0$120.0COMMDEVPUBLICSAFETYTRANSPARKS&RECOTHERAwardsExpensesFY2017Ͳ18Awards&Expenses(inMillions)KeyTrends7KHIROORZLQJJUDQWVKDYHEHHQUHFHLYHGLQ)<¾)HGHUDO(TXLWDEOH6KDULQJ¾&KDSWHU$VVHW)RUIHLWXUHV¾860DUVKDOV9LROHQW2IIHQGHUV7DVN)RUFH¾3'/DZ(QIRUFHPHQW2IILFHU6WDQGDUG (GXFDWLRQ¾6H[XDO$VVDXOW([DPLQHUV5HLPEXUVHPHQW¾6+63%DOOLVWLF%ODQNHWV¾6+631LJKW9LVLRQ¾7UDQVSRUWDWLRQ3URMHFWV¾1:7UDLO([WHQVLRQ*UDQW&LW\RI'HQWRQ7H[DVGrants Dashboard1RWH$OOILJXUHVSUHVHQWHGDUHLQPLOOLRQVRIGROODUV.7KLVJUDQWDPRXQWZLOOEHVSHQWRYHUVHYHUDO\HDUVDQGWKHILVFDO\HDUSURMHFWLRQVDUHHVWLPDWHGH[SHQGLWXUHVIRURQH\HDU5HPDLQLQJJUDQWDPRXQWVZLOOEHVSHQWLQIXWXUHILVFDO\HDU 6HFWLRQ2 &LW\RI'HQWRQ 4XDUWHUO\)LQDQFLDO5HSRUW 'HFHPEHU 7KLVUHSRUWLVGHVLJQHGIRULQWHUQDOXVHDQGGRHVQRWLQFOXGHDOOWKH IXQGVDQGDFFRXQWVLQFOXGHGLQWKH&LW\RI'HQWRQ¶VRSHUDWLRQV7KH LQIRUPDWLRQSURYLGHGLVXQDXGLWHGIRUD FRPSOHWHDXGLWHGUHSRUW SOHDVHUHIHUWRWKH&LW\RI'HQWRQ&RPSUHKHQVLYH$QQXDO)LQDQFLDO 5HSRUW DYDLODEOH WKURXJK WKH &LW\¶V )LQDQFH 'HSDUWPHQW &LW\ 6HFUHWDU\¶V2IILFHRU'HQWRQ3XEOLF/LEUDULHV FINANCIAL SUMMARY City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION Current Year - Ad Valorem 16,607,825$ 16,894,868$ 21,575,628$ 44,460,191$ 44,460,191$ 0% Delinquent - Ad Valorem 118,622 60,688 41,034 288,991 288,991 0% Miscellaneous Penalties & Fees 46,850 68,875 50,553 315,384 315,384 0% Ad Valorem Taxes 16,773,297 17,024,431 21,667,215 45,064,566 45,064,566 0% Sales Tax 9,542,996 9,052,582 9,700,411 36,181,384 36,181,384 0% Franchise - Gas Utilities - - 11,298 342,738 342,738 0% Franchise - Private Electric Utilities - - - 122,751 122,751 0% Franchise - Cable - - - 480,873 480,873 0% Franchise - Telecom 58,710 - - 233,956 233,956 0% Franchise - Denton Municipal Utilities 915,498 774,439 845,451 3,804,531 3,804,531 0% Franchise Fees 974,208 774,439 856,749 4,984,849 4,984,849 0% Other Taxes - - - 491,400 491,400 0% Ambulance Service Fees 704,310 420,565 624,307 3,726,629 3,726,629 0% Fire Department Fees 36,987 48,756 48,989 195,027 195,027 0% Building Inspections Fees 106,787 127,201 126,084 560,145 560,145 0% Park Department Fees 123,859 214,121 102,485 2,406,263 2,406,263 0% Planning Department Fees 250,253 221,663 262,243 886,355 886,355 0% Reprographics Fees 91,093 92,613 74,747 370,160 370,160 0% Miscellaneous Service Fees 21,597 30,759 15,775 123,043 123,043 0% Service Fees 1,334,886 1,155,678 1,254,630 8,267,622 8,267,622 0% Denton Municipal Fines 332,266 412,260 329,521 1,649,042 1,649,042 0% Parking Fines 72,335 61,800 65,170 247,200 247,200 0% Miscellaneous Fines and Fees 220,956 235,754 199,753 1,077,838 1,077,838 0% Court Administrative and Service Fees 198,093 214,500 231,570 988,000 988,000 0% Fines and Fees 823,650 924,314 826,014 3,962,080 3,962,080 0% Demolition Permits 1,805 2,521 2,090 10,082 10,082 0% Building Permits 319,376 578,682 638,082 2,571,085 2,571,085 0% Certificate of Occupancy 15,865 23,622 13,015 94,488 94,488 0% Miscellaneous Licenses and Permits 6,885 13,960 3,210 55,822 55,822 0% Licenses and Permits 343,931 618,785 656,397 2,731,477 2,731,477 0% Investment Income 55,889 132,500 92,272 530,000 530,000 0% Miscellaneous Revenues 12,558 189,714 73,753 1,458,388 1,458,388 0% Miscellaneous Resources 68,447 322,214 166,025 1,988,388 1,988,388 0% ROI - Denton Municipal Utilities 1,685,653 1,902,930 1,781,588 7,997,918 7,997,918 0% Transfers 2,015,667 2,013,119 2,008,981 8,050,688 8,050,688 0% Transfers 3,701,320 3,916,049 3,790,569 16,048,606 16,048,606 0% Total General Fund Revenues 33,562,735$ 33,788,492$ 38,918,010$ 119,720,372$ 119,720,372$ 0% City of Denton General Fund Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION NEIGHBORHOOD SERVICES Building Inspections 744,189$ 769,589$ 677,286$ 3,075,893$ 3,075,893$ 0% Community Improvement Services 415,441 391,392 316,381 1,564,294 1,564,294 0% Libraries 1,575,265 1,517,243 1,609,959 6,064,112 6,064,112 0% Parks and Recreation 2,690,768 3,351,854 2,810,636 13,971,655 13,971,655 0% Planning 806,742 853,413 687,820 3,410,931 3,410,931 0% Gas Well Review 60,831 98,334 61,025 393,026 393,026 0% Social Services 123,125 157,561 123,488 629,738 629,738 0% 6,416,361 7,139,386 6,286,595 29,109,649 29,109,649 0% PUBLIC SAFETY Animal Services 295,447 390,113 393,984 1,559,205 1,559,205 0% Fire 6,918,199 7,183,634 7,412,533 28,711,580 28,711,580 0% Municipal Court 338,173 345,705 327,449 1,381,702 1,381,702 0% Municipal Judge 93,676 109,116 100,114 436,124 436,124 0% Police 7,423,503 8,080,901 7,899,347 32,297,806 32,297,806 0% 15,068,998 16,109,469 16,133,427 64,386,417 64,386,417 0% TRANSPORTATION Traffic Operations 486,255 468,381 325,273 3,992,028 3,992,028 0% Transportation Operations 111,759 211,833 101,030 846,658 846,658 0% Street Lighting 197,247 188,901 192,254 755,000 755,000 0% 795,261 869,115 618,557 5,593,686 5,593,686 0% ADMINISTRATIVE & COMMUNITY SERVICES Cable Television 74,463 80,878 76,138 323,271 323,271 0% City Manager's Office 636,409 707,888 683,528 2,829,303 2,829,303 0% Economic Development 407,126 1,115,415 333,147 4,458,071 4,458,071 0% Facilities Management 802,435 1,082,022 889,407 4,324,642 4,324,642 0% Finance 737,415 769,665 745,870 3,076,220 3,076,220 0% Human Resources 462,730 439,319 475,940 1,755,865 1,755,865 0% Internal Audit 12,900 65,900 54,810 263,381 263,381 0% Legal Administration 545,139 613,941 504,011 2,453,772 2,453,772 0% Public Communications Office 94,419 123,853 117,778 495,021 495,021 0% Reprographics 132,415 108,496 88,114 433,646 433,646 0% Non-Departmental 920,332 720,589 1,363,843 2,880,047 2,880,047 0% 4,825,783 5,827,966 5,332,586 23,293,239 23,293,239 0% TOTAL EXPENDITURES 27,106,403$ 29,945,936$ 28,371,165$ 122,382,991$ 122,382,991$ 0% City of Denton Electric Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 9/30/17 72,510,304$ 76,942,756$ REVENUES: Operating Revenues 37,459,978$ 39,096,328$ 38,318,935$ 173,229,784 173,229,784 0% Non-operating Revenues 171,559 98,985 274,798 450,000 450,000 0% Total Revenues 37,631,537 39,195,313 38,593,733 173,679,784 173,679,784 0% EXPENDITURES: Purchased Power 21,086,101 18,854,056 18,430,133 84,547,684 84,547,684 0% Operation and Maintenance 8,723,157 11,540,096 8,862,576 47,203,956 47,203,956 0% Return on Investment 1,173,243 1,391,200 1,233,960 5,767,985 5,767,985 0% Franchise Fee 1,673,314 1,984,775 1,760,373 8,239,978 8,239,978 0% Non-Operating Expenditures 13,082,628 15,876,429 15,690,179 35,144,150 35,144,150 0% Total Expenditures 45,738,443 49,646,556 45,977,221 180,903,753 180,903,753 0% Net Income (Loss) (8,106,906)$ (10,451,243)$ (7,383,488)$ (7,223,969) (7,223,969) Ending Working Capital and Reserves 65,286,335$ 69,718,787$ 1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process. City of Denton Water Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 09/30/171 20,851,375$ 23,340,901$ REVENUES: Water Sales Residential 4,019,558$ 4,634,213$ 4,503,572$ 19,550,225 19,550,225 0% Water Sales Commercial 4,061,524 4,584,174 4,401,205 17,016,173 17,016,173 0% Water for Resale 138,317 155,728 1,222,766 553,406 553,406 0% Other Water 250,548 194,759 317,734 811,832 811,832 0% Transfers In 1,599,894 1,486,820 1,486,820 5,947,281 5,947,281 0% Investment Income 43,276 43,750 63,153 175,000 175,000 0% Impact Fee Revenue 1,000,800 938,851 939,603 3,755,404 3,755,404 0% Total Revenues 11,113,917 12,038,295 12,934,853 47,809,321 47,809,321 0% EXPENDITURES: Personal Service 2,496,006 2,473,986 2,558,827 11,408,173 11,408,173 0% Purchased Power 281,438 439,855 309,963 1,600,000 1,600,000 0% Materials and Supplies 299,834 390,664 292,667 1,721,614 1,721,614 0% Maintenance and Repairs 304,202 252,567 256,357 1,552,572 1,552,572 0% Insurance 59,737 55,620 55,620 222,481 222,481 0% Miscellaneous 86,558 92,556 80,676 340,278 340,278 0% Operations, Services 490,008 679,330 420,502 2,563,509 2,563,509 0% Capital Outlay 1,981,764 1,459,005 2,197,981 9,062,143 9,062,143 0% Return on Investment 293,572 352,845 325,216 1,327,607 1,327,607 0% Franchise Fee 419,390 504,064 464,594 1,896,582 1,896,582 0% Debt Service 5,505,916 6,497,330 6,497,330 12,640,594 12,640,594 0% Transfers Out 902,938 868,444 870,659 3,473,768 3,473,768 0% Total Expenditures 13,121,363 14,066,266 14,330,782 47,809,321 47,809,321 0% Net Income (Loss) (2,007,446)$ (2,027,971)$ (1,395,929)$-- Ending Working Capital and Reserves 20,851,375$ 23,340,901$ 1 The Beginning Working Capital balance excludes $6,650,271 of Impact Fee Reserves and $250,000 for Development Plan Line Reserves. budget process. 2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 City of Denton Wastewater Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 09/30/171 15,926,057$ 17,861,887$ REVENUES: Residential Fees 2,791,911$ 2,772,439$ 2,902,097$ 11,103,223 11,103,223 0% Commercial Fees 3,155,613 3,166,292 3,150,476 12,306,031 12,306,031 0% Effluent Irrigation Fees 20,369 13,262 27,709 61,530 61,530 0% Wholesale Fees 157,513 156,339 138,085 667,670 667,670 0% Other Wastewater Fees 379,455 383,211 277,695 1,642,282 1,642,282 0% Drainage Fees 1,132,638 1,170,724 1,160,122 4,673,206 4,673,206 0% Transfer In 160,205 164,758 164,757 659,030 659,030 0% Investment Income 30,837 29,375 51,740 117,500 117,500 0% Impact Fee Reserves 880,704 500,000 500,400 2,000,000 2,000,000 0% Total Revenues 8,709,245 8,356,400 8,373,081 33,230,472 33,230,472 0% EXPENDITURES: Personal Service 1,879,510 1,687,430 1,941,627 8,103,746 8,103,746 0% Purchased Power 197,118 290,831 252,338 1,221,000 1,221,000 0% Materials and Supplies 218,717 165,695 196,588 1,260,309 1,260,309 0% Maintenance and Repairs 253,629 280,312 265,509 1,464,909 1,464,909 0% Insurance 46,919 45,123 45,123 180,492 180,492 0% Miscellaneous 31,540 32,942 35,671 54,631 54,631 0% Operations, Services 482,426 656,951 420,115 2,212,647 2,212,647 0% Capital Outlay 3,806,502 2,779,087 1,417,699 6,871,781 6,871,781 0% Return on Investment 218,838 226,171 222,411 902,326 902,326 0% Franchise Fee 312,626 323,101 317,730 1,289,037 1,289,037 0% Debt Service 3,486,541 3,768,607 3,768,607 7,169,780 7,169,780 0% Transfers Out 849,657 823,098 824,855 3,292,383 3,292,383 0% Total Expenditures 11,784,023 11,079,348 9,708,273 34,023,041 34,023,041 0% Net Income (Loss) (3,074,778)$ (2,722,948)$ (1,335,192)$ (792,569) (792,569) Ending Working Capital and Reserves 15,133,488$ 17,069,318$ 1 The Beginning Working Capital balance excludes $2,194,686 of Impact Fee Reserves, $1,000,000 for Drainage Reserves, and $335,000 for Development Plan Line Reserves. 2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process. City of Denton Drainage Operations Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJEC TION REVENUES: Residential Drainage Fees 435,569$ 438,234$ 438,139$ 1,773,100$ 1,773,100$ 0% Nonresidential Drainage Fees 697,068 732,543 721,983 2,900,106 2,900,106 0% Wastewater Resources - 10,950 10,950 43,800 43,800 0% General Fund Transfer 125,334 106,008 106,007 424,030 424,030 0% Total Revenues 1,257,971 1,287,735 1,277,079 5,141,036 5,141,036 0% EXPENDITURES: Personal Service 362,366 367,023 401,425 1,773,782 1,773,782 0% Materials and Supplies 8,620 18,958 9,466 82,425 82,425 0% Maintenance and Repairs 20,820 32,129 21,947 131,300 131,300 0% Insurance 4,957 6,365 6,365 25,461 25,461 0% Miscellaneous 2,041 6,176 5,887 16,000 16,000 0% Operations, Services 67,193 93,237 109,987 549,531 549,531 0% Capital Outlay 279,413 242,570 200,919 1,281,581 1,281,581 0% Debt Service 353,763 370,485 370,485 677,790 677,790 0% Transfer Out 158,798 150,792 150,598 603,166 603,166 0% Total Expenditures 1,257,971 1,287,735 1,277,079 5,141,036 5,141,036 0% Net Income (Loss) -$ -$ -$ -$ -$ City of Denton Solid Waste Fund Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 09/30/171 8,151,875$ 9,468,891$ REVENUES: Garbage Fees - Residential 2,749,311$ 2,786,456$ 2,767,275$ 11,341,462 11,341,462 0% Garbage Fees - Commercial 3,604,045 3,849,964 3,830,542 16,127,040 16,127,040 0% Landfill Fees 1,480,287 1,685,722 1,435,709 6,836,245 6,836,245 0% Materials Processing and Mining 24,943 387,585 29,403 1,549,100 1,549,100 0% Recycling and Public Outreach 217,534 218,868 213,925 874,776 874,776 0% Site Operations 71,508 207,879 44,234 830,851 830,851 0% Other Revenue 40,311 110,976 38,610 443,550 443,550 0% Investment Income 6,201 3,753 17,007 15,000 15,000 0% Total Revenues 8,194,140 9,251,203 8,376,705 38,018,024 38,018,024 0% EXPENDITURES: Personal Service 2,638,774 2,916,640 2,715,698 11,683,418 11,683,418 0% Materials and Supplies 68,080 129,750 61,685 525,355 525,355 0% Maintenance and Repairs 78,859 175,830 66,705 671,275 671,275 0% Insurance 56,126 58,453 58,408 233,631 233,631 0% Miscellaneous 32,255 20,644 33,047 74,400 74,400 0% Operations, Services 1,380,880 1,907,699 1,184,777 7,724,368 7,724,368 0% Capital Outlay 1,531,192 692,931 - 2,669,510 2,669,510 0% Debt Service 4,212,877 5,108,893 5,108,893 9,700,467 9,700,467 0% Franchise Fee 405,617 475,608 418,743 1,900,902 1,900,902 0% Landfill Closure 66,438 94,764 94,689 378,757 378,757 0% Transfer Out 620,081 742,098 736,497 2,966,003 2,966,003 0% Total Expenditures 11,091,179 12,323,310 10,479,142 38,528,086 38,528,086 0% Net Income (Loss) (2,897,039)$ (3,072,107)$ (2,102,437)$ (510,062) (510,062) Ending Working Capital and Reserves 7,641,813$ 8,958,829$ 1 The Beginning Working Capital Reserve excludes $8,654,114 Landfill Closure/Post Closure Reserves. 2Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process. City of Denton Airport Fund Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 09/30/17 2,471,421$ 2,748,875$ OPERATING REVENUES: Airport Ground Leases 131,021$ 178,431$ 167,014$ 713,154 713,154 0% FBO Commissions 34,286 49,992 25,170 199,808 199,808 0% Miscellaneous 13,884 23,173 11,197 92,619 92,619 0% Total Operating Revenues 179,191 251,596 203,381 1,005,581 1,005,581 0% OPERATING EXPENDITURES: Personal Service 162,272 132,723 121,413 530,482 530,482 0% Materials and Supplies 4,038 11,685 3,243 46,700 46,700 0% Maintenance and Repairs 18,941 26,318 4,913 105,193 105,193 0% Insurance 5,401 5,460 5,456 21,823 21,823 0% Miscellaneous 210 300 156 1,200 1,200 0% Operations 30,686 59,589 22,818 238,160 238,160 0% Transfers Out - Operating 117,556 136,877 129,960 547,070 547,070 0% Total Operating Expenses 339,104 372,952 287,959 1,490,628 1,490,628 0% Operating (Loss)(159,913) (121,356) (84,578) (485,047) (485,047) NON-OPERATING REVENUES: Investment Income 8,320 6,255 13,747 25,000 25,000 0% Gas Well Royalties 55,057 118,627 38,651 474,130 474,130 0% Total Non-Operating Revenues 63,377 124,882 52,398 499,130 499,130 0% NON-OPERATING EXPENDITURES: Transfers Out - Capital - 56,295 - 225,000 225,000 0% Total Non-Operating Expenses - 56,295 - 225,000 225,000 0% Non-Operating Income (Loss) 63,377 68,587 52,398 274,130 274,130 Net Income (Loss)(96,536)$ (52,769)$ (32,180)$ (210,917) (210,917) Ending Working Capital 2,260,504$ 2,537,958$ 1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2017-18 budget process. City of Denton Street Improvement Fund Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION Beginning Working Capital and reserves as of 9/30/2017 1,253,048$ 1,158,667$ REVENUES: Franchise Fees 2,017,003$ 3,121,509$ 2,144,267$ 12,476,060 12,476,060 0% Street Cuts 65,218 89,322 75,252 357,000 357,000 0% Investment Income 4,682 2,502 - 10,000 10,000 0% Transfers In 241,069 279,757 258,645 1,118,135 1,118,135 0% Total Revenues 2,327,972 3,493,090 2,478,164 13,961,195 13,961,195 0% EXPENDITURES: Personal Service 732,190 860,680 860,520 3,439,984 3,439,984 0% Materials and Supplies 27,888 21,802 24,210 87,150 87,150 0% Maintenance and Repairs 838,740 1,706,970 1,427,229 8,041,573 8,041,573 0% Insurance 10,756 12,933 12,923 51,693 51,693 0% Miscellaneous 3,609 1,251 4,292 5,000 5,000 0% Operations, Services 202,898 175,213 133,274 700,302 700,302 0% Transfer Out 450,505 714,231 753,758 1,635,493 1,635,493 0% Total Expenditures 2,266,586 3,493,080 3,216,206 13,961,195 13,961,195 0% Net Income (Loss) 61,386$10$ (738,042)$-- Ending Fund Balance 1,253,048$ 1,158,667$ 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process. City of Denton Grants Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 GRANT DESCRIPTION EXPENDITURES AS OF 9/30/20172 CURRENT Y-T-D ANNUAL BUDGET ANNUAL PROJECTION BUDGET VS PROJECTION FY 2017-18 Budget US Dept of HUD - Community Development Block Grant(CDBG)2,775,354$ 103,859$ 1,893,649$ 600,000$ -68% US Dept of HUD - HOME Investment Partnership Program 2,816,384 180,307 1,046,759 450,000 -57% Community Development1 5,591,738 284,166 2,940,408 1,050,000 -64% TxDot STEP Comprehensive Grant - 15,920 91,464 91,464 0% 2016 UASI - - 130,000 130,000 0% 2017 UASI - - 98,200 98,200 0% Emergency Management Performance Grant - - 46,825 46,825 0% 2016 Tobacco Enforcement Grant - - 7,350 - -100% Staffing for Adequate Fire & Emergency Response - - 419,971 419,971 0% Public Safety - 15,920 793,810 786,460 -1% Airport Maintenance (RAMP) Grant - - 50,000 50,000 0% TxDot-RTR-Mayhill Rd-IH35 E to US 380 14,203,683 3,358,118 33,197,821 18,000,000 -46% TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 9,189,164 707,876 39,579,553 7,000,000 -82% County-Traffic Signal-US 380-Cindy Lane - - 53,865 - -100% TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 37,000 37,000 0% TxDot-RTR-McKinney (Formerly FM426) 138 686 18,267,303 1,300,000 -93% TxDot-Hickory Creek FM2181-FM2499 2,294 - 2,397,706 400,000 -83% NCTCOG Regional HHW Drop-Off Facility Project - - 55,898 - -100% Bicycle & Pedestrian Projects Grant - - 1,500,000 195,000 -87% Transportation1 23,395,279 4,066,680 95,139,146 26,982,000 -72% Interlibrary Loan Program (ILL) - - 25,000 25,000 0% TIFMAS Training Tuition Grant - - 10,000 10,000 0% Other - - 35,000 35,000 0% Total FY 2017-18 Budget 28,987,017 4,366,766 98,908,364 28,853,460 -71% New Awards Federal Equitable Sharing - 5,149 5,149 5,149 0% Chapter 59 Asset Forfeitures - 15,664 15,664 15,664 0% U.S. Marshals Violent Offenders Task Force - 5,814 5,814 5,814 0% PD-Law Enforcement Officer Standards & Education - 3,942 3,942 3,942 0% Sexual Assault Nurse Examiners (SANE) Reimbursement - 13,457 13,457 13,457 0% 2017 SHSP Ballistic Blankets - - 3,000 3,000 0% 2017 SHSP Night Vision - - 14,200 14,200 0% Public Safety - 44,026 61,226 61,226 0% City of Denton Grants Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2017 GRANT DESCRIPTION EXPENDITURES AS OF 9/30/20172 CURRENT Y-T-D ANNUAL BUDGET ANNUAL PROJECTION BUDGET VS PROJECTION TxDot-N TX Blvd Roundabout 11,805 - 1,988,195 400,000 -80% TxDot-RTR-ITS COMM Trunk Line 253,372 14,442 1,318,228 1,000,000 -24% TxDot-US 77 At Nicosia Street - 3,100 38,240 38,240 0% TxDot-FM 2499 At State School Road - - 21,597 21,597 0% TxDot-FM 2499 At Unicorn Lake - - 21,638 21,638 0% Transportation1 265,177 17,542 3,387,898 1,481,475 -56% TxDot NW Trail Extension Grant 1,086,685 119,353 212,273 212,273 0% Parks and Recreations 1,086,685 119,353 212,273 212,273 0% Total New Awards 1,351,862 180,921 3,661,397 1,754,974 -52% TOTALS 30,338,879$ 4,547,687$ 102,569,761$ 30,608,434$ -70% 1This grant amount will be spent over several years and the fiscal year 2017-18 projections are just estimated expenditure in the one year. Remaining grant amounts will be spent in future fiscal year. 2 A portion of the grants presented cover multiple years. 6HFWLRQ3 &LW\RI'HQWRQ 4XDUWHUO\)LQDQFLDO5HSRUW 'HFHPEHU REVENUE & ECONOMIC ANALYSIS Revenue & Economic Analysis Summary 7KHGDWDLQFOXGHGLQWKLVVHFWLRQSURYLGHVLQIRUPDWLRQRQORFDOVWDWH DQGQDWLRQDOWUHQGVLPSDFWLQJWKH&LW\¶VILQDQFLDOSRVLWLRQ 7KHIROORZLQJQRWHVDUHSURYLGHGWRIDFLOLWDWHWKLVVHFWLRQ¶VUHDGDELOLW\ 3RVLWLYH2XWORRN±5HSUHVHQWVIDYRUDEOHFRQGLWLRQVIRUWKHORFDO HFRQRP\&RORUFRGH±*UHHQ &DXWLRXV 2XWORRN ± 5HSUHVHQWV FKDQJLQJ FRQGLWLRQV WKDW UHTXLUHFORVHPRQLWRULQJ&RORUFRGH±<HOORZ 1HJDWLYH2XWORRN±5HSUHVHQWVXQIDYRUDEOHFRQGLWLRQVIRUWKH ORFDOHFRQRP\&RORUFRGH±5HG 7KHGDWDLQFOXGHGLQWKLVVHFWLRQKDYHEHHQREWDLQHGIURPDYDULHW\RI VRXUFHV6DOHVWD[DQGFRQVWUXFWLRQUHODWHGGDWDKDYHEHHQREWDLQHG IURP LQWHUQDOFLW\ GHSDUWPHQWV (FRQRPLF GDWD IRUWKH 6WDWH KDYH EHHQREWDLQHGIURPWKH)HGHUDO5HVHUYH%DQNRI'DOODVDQGPD\EH VXEMHFWWRDYDLODELOLW\1DWLRQDOHFRQRPLFGDWDZHUHFRPSLOHGZLWK DVVLVWDQFHIURPWKH&LW\¶VLQYHVWPHQWDGYLVRU)LUVW6RXWKZHVW$VVHW 0DQDJHPHQW National Economic Trends 3HULRG (QGLQJ 'HFHPEHU *URVV 'RPHVWLF 3URGXFW *'3 7KH ILUVW PHDVXUH RI IRXUWK TXDUWHU *'3 IHOO VKRUW RI IRUHFDVW ZLWK D DQQXDOL]HG JURZWK UDWH $OWKRXJK KRSHV IRU WKUHH VWUDLJKW TXDUWHUV RI JURZWK GLGQ¶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rising housing costs SXVKHG FRUH &3, XS 7KH \HDURYHU\HDU KHDGOLQH &3, VOLSSHG IURP WR EXW \R\ FRUH &3, FOLPEHG IURP WR 7KH )HG¶V SUHIHUUHG PHDVXUH 3&( FRUHrose for the fourth straight month FOLPELQJ IURP WR LQ 'HFHPEHU VWLOO ZHOO EHORZ WKH UHFHQW SHDN RI LQ -DQ 2YHUDOO WKH UDWH RI FRQVXPHU LQIODWLRQ DOWKRXJK VWLOO EHORZ WKH )HG¶V WDUJHW LV FUHHSLQJ JUDGXDOO\ KLJKHU DV ERWK WKH GRPHVWLF DQG JOREDO HFRQRPLHV JDLQ VWUHQJWK $V ORQJ DV WKH LQIODWLRQ WUHQG LV XSZDUG WKH )20& VKRXOG UHPDLQ RQ LWV WLJKWHQLQJ SDWK 5HWDLO 6DOHV 5HWDLOHUV GHFODUHG DV the best holiday buying season in seven years 'HFHPEHU UHWDLO VDOHV URVH E\ $OWKRXJK VOLJKWO\ EHORZ IRUHFDVWV WKH KHDGOLQH PDVNHG VWURQJHU XQGHUO\LQJ GHWDLOV 5HWDLO VDOHV H[ DXWR DQG JDV DOVR URVH LQ 'HFHPEHU EXW 1RYHPEHU¶V QXPEHU ZDV ERRVWHG IURP WR 7KH UHVXOWLQJ DQQXDOL]HG TXDUWHUO\ JDLQ ZDV the largestin12years. 7KH UHWDLO VDOHV ³FRQWURO JURXS´ ZKLFK IHHGV LQWR WKH *'3 FDOFXODWLRQV DOVR VDZ D ELJ UHYLVLRQ ZLWK 1RYHPEHU¶V RULJLQDO JDLQUHYLVHGXSZDUGWRZKLOH 'HFHPEHU¶V LQFUHDVH FDPH LQ DW D UHVSHFWDEOH 7H[DV +RPH 6DOHV 7H[DVKRPHVDOHVIHOOE\IURPWKHWKLUG WR WKH IRXUWK TXDUWHU EXW VWLOO JUHZ RQ D \HDURYHU\HDU EDVLV 7KH DYHUDJH 7H[DV KRPH SULFH LQ 'HFHPEHU ZDV N D LQFUHDVH RYHU WKH SUHYLRXV \HDU EXW GRZQ IURP WKH KLJK RI N VL[ PRQWKV HDUOLHU ,Q 'HQWRQ &RXQW\ XQLW KRPH VDOHV IHOO GXULQJ WKH TXDUWHU EXW URVH RYHU WKH VDPH SHULRG D \HDU DJR 7KH DYHUDJH KRPH SULFHLQ'HFHPEHUZDVND\HDU RYHU\HDU LQFUHDVH DQG WKH KLJKHVW DYHUDJH UHFRUGHG LQ DQ\ VLQJOH PRQWK 7RWDO 'HQWRQ &RXQW\ OLVWLQJV LQ 'HFHPEHU ZHUH DERXW KLJKHU WKDQ D \HDU DJR 7KH DYDLODEOH LQYHQWRU\ DW \HDU HQG ZDV MXVW PRQWKV YHU\ FORVH WR WKH PRQWK KLVWRULFDO ORZ 7KH SDSHU ZDV SUHSDUHG E\ )LUVW6RXWKZHVW $VVHW 0DQDJHPHQW LV LQWHQGHG IRU HGXFDWLRQDO DQG LQIRUPDWLRQDO SXUSRVHV RQO\ DQG GRHV QRW FRQVWLWXWH OHJDO RU LQYHVWPHQW DGYLFH QRU LV LW DQ RIIHU RU D VROLFLWDWLRQ RI DQ RIIHU WR EX\ RU VHOO DQ\ LQYHVWPHQW RU RWKHU VSHFLILF SURGXFW ,QIRUPDWLRQ SURYLGHG LQ WKLVSDSHUZDV REWDLQHG IURP VRXUFHV WKDW DUH EHOLHYHG WR EH UHOLDEOH KRZHYHU LW LV QRW JXDUDQWHHG WR EH FRUUHFW FRPSOHWH RU FXUUHQW DQG LV QRW LQWHQGHG WR LPSO\RU HVWDEOLVK VWDQGDUGV RI FDUH DSSOLFDEOH WR DQ\ DWWRUQH\ RU DGYLVRU LQ DQ\ SDUWLFXODU FLUFXPVWDQFHV 7KH VWDWHPHQWV ZLWKLQ FRQVWLWXWH WKH YLHZV RI )LUVW6RXWKZHVW $VVHW 0DQDJHPHQW DV RI WKH GDWH RI WKH UHSRUW DQG PD\ GLIIHU IURP WKH YLHZV RI RWKHU GLYLVLRQVGHSDUWPHQWV RI +LOOWRS 6HFXULWLHV ,Q DGGLWLRQ WKH YLHZV DUH VXEMHFW WR FKDQJH ZLWKRXW QRWLFH 7KLV SDSHU UHSUHVHQWV KLVWRULFDO LQIRUPDWLRQ RQO\ DQG LV QRW DQ LQGLFDWLRQ RI IXWXUH SHUIRUPDQFH Fuel Prices Outlook Cautious Description: Quarterly fuel trends for the United States and Texas. Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key predictor of sales tax collections. Fuel prices showed a 3.0% increase from the prior quarter at the national level and a 1.4% increase at the state level. Staff has rated this outlook as Cautious. Source: U.S. Department of Energy $0 $2 $4 $6 $8 $10 $12 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 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 1st Quarter of 2017-18 shows an increase of 1.9% over the prior quarter and an increase of 8.2% over the 1st Quarter of 2016-17. Staff has rated this indicator as Negative. Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978, readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing business as a local government. Source: American City and County Magazine 225.00 230.00 235.00 240.00 245.00 250.00 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 Municipal Cost Index Hotel Occupancy Tax Analysis Outlook Positive 1st Quarter FY 2017-18 Actual Y-T-D Occupancy Tax Revenue: 586,357$ 586,357$ FY 2017-18 Budget 685,694$ 685,694$ Over (Under) Budget (99,337)$ (99,337)$ Hotel Occupancy Tax Budget: 3,052,174$ 3,052,174$ Variance:-$ Description:Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%. Analysis:While the use of this revenue source is restricted by state law, it is an essential revenue source for various tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy tax revenue through the 1st Quarter of FY 2018 was 14% less than budget but 5% more than the prior year's actual. Staff has rated the outlook for this economic indicator as Positive. FISCAL YEAR FORECAST End of Year Projection: $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Hotel Occupancy Tax Collections FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 SalesandUseTaxAnalysis Outlook Positive 1stQuarter FY2017Ͳ18 Actual YͲTͲD Revenue:GrossSalesTax MunicipalOperations 437,767$437,767$ GeneralRetail&Others 9,636,9349,636,934 ComptrollerFees (189,035)(189,035) AmountRetained (185,255)(185,255) TotalRevenue 9,700,411$$9,700,411 Expenses:EconomicIncentives DentonCrossing1 157,122$157,122$ UnicornLake2 21,73321,733 RayzorRanch3 370,639370,639 GoldenTriangle4 39,32539,325 TotalExpenses 588,819$588,819$ NetTotal 9,111,5929,111,592 FY2017Ͳ18Budget 8,576,5278,576,527 Over(Under)Budget 535,065$535,065$ SalesTaxBudget: 36,181,385$ YearEndProjection: 36,181,385 VariancetoOriginalBudget:Ͳ$ EconomicDevelopmentExpenditureBudget: 2,373,819$ YearEndProjection: 2,373,819 VariancetoOriginalBudget:Ͳ$ *EconomicIncentiveactualsarethroughOctober2017withbudgetamountforNovemberandDecember. 1.Incentiveis33%ofsalestaxes.Forthe1stquartersalestaxequaled$476,127. 2.Incentiveis33%ofsalestaxes.Forthe1stquartersalestaxequaled$65,858. 3.Incentiveis50%ofsalestaxes.Forthe1stquartersalestaxequaled$741,278 4.Incentiveis50%ofsalestaxes.Forthe1stquartersalestaxequaled$78,650. Description:Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax rateleviedwithintheCityis8.25%(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 1st quarter of FY 2018 compared to revenues from the prior year 1st quarter shows a 1.65% increase, and compared to the budget it is 6.24% above. Staff has rated thisindicatorasPositive. $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 1stQtr 2ndQtr 3rdQtr 4thQtr GrossSalesTaxCollections(Millions) FY2013Ͳ14Actual FY2014Ͳ15Actual FY2015Ͳ16Actual FY2016Ͳ17Actual FY2017Ͳ18Actual Certificates of Occupancy Outlook Cautious Source: City of Denton's Development Services Department. Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building Code (IBC) and applicable City ordinances. The IBC states,"that no building shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and consumer health codes are met. Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of the local economy. Certificates of Occupancy decreased 31.8% from the prior quarter and increased 2.34% from the 1st Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious. 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 Certificates of Occupancy Residential Permits Outlook Cautious Source: City of Denton's Development Services Department. Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and applicable City ordinances. The data presented in this analysis only include new permits issued and not remodels/alterations. Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the local economy. In particular, residential permits have a direct correlation with building inspection fees and appraised values. Residential permits decreased 28.1% from the prior quarter and increased 181.7% from the 1 st Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious 0.0 50.0 100.0 150.0 200.0 250.0 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 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 an increase in the state's rate of growth. The index increased 1.0% from the prior quarter and increased 4.07% from the 1st Quarter of 2016-17. Staff has rated this indicator as Positive 100.0 105.0 110.0 115.0 120.0 125.0 130.0 135.0 140.0 1Q '08 3Q '08 1Q '09 3Q '09 1Q '10 3Q '10 1Q '11 3Q '11 1Q '12 3Q '12 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 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 2.6% for the 1 st Quarter. The unemployment rates for most of the other reported sectors were either down or flat from the prior quarter. As a result of the downward trend since the high of the 1st Quarter of 2011, staff has rated the outlook for this revenue indicator as Positive. Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job. Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 1Q '12 3Q '12 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 Unemployment Rate Index Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States 6HFWLRQ4 &LW\RI'HQWRQ 4XDUWHUO\)LQDQFLDO5HSRUW 'HFHPEHU INVESTMENT REPORT 1st Fiscal Quarter 2018 - December 31, 2017 Page 1 INVESTMENT POOL Policy Par Market Book Unrealized Max. Benchmark Portfolio: Value Value Value Gain/(Loss)1 WAM WAM YTM Yield* ,QYHVWPHQW3RRO *Twelve month moving average of a one year U.S. T-bill yield % of Total Par Market Book Unrealized Portfolio Policy Securities By Investment Type: Value Value Value Gain/(Loss)1 WAM YTM (Book Value) Max. 867UHDVXULHV 86)HGHUDO$JHQFLHV 0XQLFLSDO%RQGV &HUWLILFDWHVRI'HSRVLW &RPPHUFLDO3DSHU /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV 7RWDO3RUWIROLR Current 3 Months Ago 3 Month 1 Year Ago Investment Pool Comparisons: 12/31/2017 9/30/2017 Difference 12/31/2016 3DU9DOXH 0DUNHW9DOXH %RRN9DOXH 8QUHDOL]HG*DLQ/RVV :HLJKWHG$YHUDJH0DWXULW\ <LHOGWR0DWXULW\ Portfolio Composition: 867UHDVXULHV 86)HGHUDO$JHQFLHV 0XQLFLSDO%RQGV &HUWLILFDWHVRI'HSRVLW &RPPHUFLDO3DSHU /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio :HOOV)DUJR'HPDQG'HSRVLWV %1<0HOORQ 86$JHQF\0%6 /HJDF\7H[DV%DQN&HUWLILFDWHVRI'HSRVLW )HG+RPH/RDQ%DQN 6WDQGE\/2& ,QGHSHQGHQW%DQN&HUWLILFDWHVRI'HSRVLW )HG+RPH/RDQ%DQN 6WDQGE\/2& **Does not include FDIC insurance ***Formerly, ViewPoint Bank Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal. :HOOV)DUJR%DQN &KHFNLQJ Compliance Statement & Review: CITY OF DENTON : QUARTERLY INVESTMENT REPORT 1 Year Ago Difference 8QUHDOL]HG JDLQORVV LV WKH GLIIHUHQFH EHWZHHQ WKH PDUNHW DQG ERRN YDOXH DQG GRHV QRW UHSUHVHQW DQ DFWXDO JDLQ RU ORVV *DLQV DQG ORVVHV DUH UHDOL]HG RQO\ ZKHQ D VHFXULW\ LV VROG SULRU WR PDWXULW\ 6LQFH LW LV WKH &LW\ V SUDFWLFH WR KROG LQYHVWPHQWV XQWLO WKH\ PDWXUH WKH WHPSRUDU\ JDLQV DQG ORVVHVDUHXQOLNHO\WREHUHDOL]HG Withdrawals 7KH 4XDUWHUO\ ,QYHVWPHQW 5HSRUW LV LQ IXOO FRPSOLDQFH ZLWK WKH REMHFWLYHV UHVWULFWLRQV DQG VWUDWHJLHV DV VHW IRUWK LQ WKH &LW\ RI 'HQWRQ V ,QYHVWPHQW 3ROLF\DQGWKH3XEOLF)XQGV,QYHVWPHQW$FW7H[DV*RYHUQPHQW&RGH&KDSWHU 5HYLHZHU$QWRQLR3XHQWH-U&*)2 Pledge Required ! ! ! $1721,238(17(-5 &$52/,1(),1/(< Director of Finance Treasury Administrator 3UHSDUHU&DUROLQH)LQOH\ 1st Fiscal Quarter 2018 - December 31, 2017 Page 2 INVESTMENT POOL Current 3 Months Ago 3 Month 1 Year Ago 1 Year 12/31/2017 9/30/2017 Difference 12/31/2016 Difference 3DU9DOXH867UHDVXULHV 3DU9DOXH86)HGHUDO$JHQFLHV 3DU9DOXH0XQLFLSDO%RQGV &HUWLILFDWHVRI'HSRVLW 3DU9DOXH&RPPHUFLDO3DSHU /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Total Par Value 664,555,916$ 707,614,071$ (43,058,155)$ 504,051,706$ 160,504,210$ 0DUNHW9DOXH867UHDVXULHV 0DUNHW9DOXH86)HGHUDO$JHQFLHV 0DUNHW9DOXH0XQLFLSDO%RQGV &HUWLILFDWHVRI'HSRVLW 0DUNHW9DOXH&RPPHUFLDO3DSHU /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Total Market Value 661,960,386$706,581,905$ (44,621,519)$ 504,248,614$ 157,711,772$ %RRN9DOXH867UHDVXULHV %RRN9DOXH86)HGHUDO$JHQFLHV %RRN9DOXH0XQLFLSDO%RQGV &HUWLILFDWHVRI'HSRVLW %RRN9DOXH&RPPHUFLDO3DSHU /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Total Book Value 664,403,888$ 707,643,535$ (43,239,647)$ 504,835,388$ 159,568,500$ Accrued Interest Cash Value - (Total Market Value + Accrued Interest) Unrealized Gain/(Loss) Change in Fair Value since 9/30/17 - (GASB 31) Strategy Statement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st Fiscal Quarter 2018 - December 31, 2017 Page 3 INVESTMENT POOL Current 3 Months Ago 1 Year Ago Summary By Security Type: 12/31/2017 9/30/2017 12/31/2016 867UHDVXULHV&RXSRQ 86)HGHUDO$JHQFLHV&RXSRQ 86)HGHUDO$JHQFLHV&DOODEOH 0XQLFLSDO%RQGV&RXSRQ &HUWLILFDWHVRI'HSRVLW&'$56 &HUWLILFDWHVRI'HSRVLW6/2& &RPPHUFLDO3DSHU'LVFRXQW /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Total Book Value 664,403,888$ 707,643,535$ 504,835,388$ Objective: Current 3 Months Ago 1 Year Ago Summary By Security Type: 12/31/2017 9/30/2017 12/31/2016 867UHDVXULHV&RXSRQ 86)HGHUDO$JHQFLHV&RXSRQ 86)HGHUDO$JHQFLHV&DOODEOH 0XQLFLSDO%RQGV&RXSRQ &HUWLILFDWHVRI'HSRVLW&'$56 &HUWLILFDWHVRI'HSRVLW6/2& &RPPHUFLDO3DSHU'LVFRXQW /RFDO*RYHUQPHQW,QYHVWPHQW3RROV ,QVXUHG&DVK6ZHHS6DYLQJV'HSRVLWV 'HPDQG'HSRVLWV Total 100.00% 100.00% 100.00% CITY OF DENTON : QUARTERLY INVESTMENT REPORT 7KH SRUWIROLR LV UHVWULFWHG WR 86 7UHDVXULHV DQG DJHQF\ VHFXULWLHV PDWXULQJ LQ OHVV WKDQ ILYH \HDUV VWDWH DQG ORFDOO\ LVVXHG 7H[DV PXQLFLSDO ERQGV UDWHG $$ RU EHWWHU PDWXULQJ LQ OHVV WKDQ WKUHH \HDUV LQVXUHG FROODWHUDOL]HG RU VWDQGE\ OHWWHU RI FUHGLW EDFNHG FHUWLILFDWHV RI GHSRVLW PDWXULQJ LQ OHVV WKDQ WKUHH \HDUV FROODWHUDOL]HG UHSXUFKDVH DJUHHPHQWV PDWXULQJ LQ OHVV WKDQ WKLUW\ GD\V FRPPHUFLDO SDSHU UDWHG $3 RU EHWWHU PDWXULQJ LQ OHVV WKDQ GD\V DQG ORFDO JRYHUQPHQW SRROV 6(& UHJLVWHUHG JRYHUQPHQW PRQH\ PDUNHW PXWXDO IXQGV ZHLJKWHG DYHUDJH PDWXULW\RIOHVVWKDQGD\V U.S.TreasuriesͲ Coupon 9.27% U.S.FederalAgenciesͲ Coupon 52.89% U.S.FederalAgenciesͲ Callable 5.28% MunicipalBondsͲ Coupon 3.92% Certificatesof DepositͲCDARS 9.27%CommercialPaperͲ Discount 7.86% LocalGovernment InvestmentPools 6.78% InsuredCashSweepSavings Deposits… DemandDeposits 0.44% &XUUHQW 1st Fiscal Quarter 2018 - December 31, 2017 Page 4 INVESTMENT POOL Current 3 Months Ago 1 Year Ago Summary By Issuer: 12/31/2017 9/30/2017 12/31/2016 &'$56&'V /(*$&<7(;$6%$1.&'V ,1'(3(1'(17%$1.&'V 8675($685< ))&% )+/% )+/0& )10$ '$//$67;:75 6:55(9%'6 7(;$6$ 081,95(9%'6 :,//,$0621&2817<7;*(12%*%'6 /8%%2&.7;*25()81',1*%'6 81,9(56,7<2)+2867217;5(9%'6 0&.,11(<7;*(1(5$/2%*%21'6 7(;$66&+22/',67*(12%*%21'6 -3025*$16(&85,7,(6//& 72<27$02725&5(',7&253 1(67/(),1$1&(,17//7' ,1*86)81',1*//& 7(;67$5 ,1685('&$6+6:((36$9,1*6 :(//6)$5*2'(0$1''(326,76 Total Book Value 664,403,888$ 707,643,535$ 504,835,388$ Objective: Current 3 Months Ago 1 Year Ago Summary By Issuer: 12/31/2017 9/30/2017 12/31/2016 &'$56&'V /(*$&<7(;$6%$1.&'V ,1'(3(1'(17%$1.&'V 8675($685< ))&% )+/% )+/0& )10$ '$//$67;:75 6:55(9%'6 7(;$6$ 081,95(9%'6 :,//,$0621&2817<7;*(12%*%'6 /8%%2&.7;*25()81',1*%'6 81,9(56,7<2)+2867217;5(9%'6 0&.,11(<7;*(1(5$/2%*%21'6 7(;$66&+22/',67*(12%*%21'6 -3025*$16(&85,7,(6//& 72<27$02725&5(',7&253 1(67/(),1$1&(,17//7' ,1*86)81',1*//& 7(;67$5 ,1685('&$6+6:((36$9,1*6 :(//6)$5*2'(0$1''(326,76 Total 100.00% 100.00% 100.00% *Formerly, ViewPoint Bank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s,8.13% LEGACYTEXASBANKCDs,9.33% INDEPENDENTBANKCDs,3.01% U.S.TREASURY,8.13% FFCB,11.89% FHLB,19.58% FHLMC,7.21% FNMA,12.30% DALLAS,TXWTR&SWRREVBDS,1.51% TEXASA&MUNIVREVBDS,0.68% LUBBOCK,TXGOREFUNDINGBDS,0.50% UNIVERSITYOFHOUSTON,TXREVBDS,0.75% JPMORGANSECURITIESLLC,3.90% TOYOTAMOTORCREDITCORP,2.25% ING(U.S.)FUNDINGLLC,0.75% INSUREDCASHSWEEPSAVINGS,3.76% TEXSTAR,5.93%WFDEMANDDEPOSITS,0.39% Current 12/31/2017 1st Fiscal Quarter 2018 - December 31, 2017 Page 5 INVESTMENT POOL Current 3 Months Ago 1 Year Ago Maturity Time Frame: 12/31/2017 9/30/2017 12/31/2016 0RQWKV 0RQWKV 0RQWKV 0RQWKV 0RQWKV 2YHU Total Par Value 664,555,916$ 707,614,071$ 504,051,706$ Objective: Current 3 Months Ago 1 Year Ago Maturity Time Frame: 12/31/2017 9/30/2017 12/31/2016 0RQWKV 0RQWKV 0RQWKV 0RQWKV 0RQWKV 2YHU Total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st Fiscal Quarter 2018 - December 31, 2017 Page 6 ECONOMIC SUMMARY Interest Rate History 6RXUFH86)HGHUDO5HVHUYH6WDWLVWLFDO 5HOHDVH+ 'HF 0DU -XQ 6HS 'HF 0DU -XQ 6HS 'HF 0DU -XQ 6HS Market Sector:$YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ )HG)XQGVHIIHFWLYH 0RQWK867%LOO <HDU8671RWH 3RUWIROLR%HQFKPDUN 3RUWIROLR<LHOG 'HF 0DU -XQ 6HS 'HF 0DU -XQ 6HS 'HF 0DU -XQ 6HS Market Sector:$YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ $YJ )HG)XQGVHIIHFWLYH 0RQWK867%LOO <HDU8671RWH 3RUWIROLR%HQFKPDUN 3RUWIROLR<LHOG *Twelve month moving average of a one year U.S. T-bill yield Fiscal Year: QUARTERLY COMMENTARY December 31, 2017 6RXUFH)LUVW6RXWKZHVW$VVHW0DQDJHPHQW (FRQRPLF6XPPDU\ 7H[67$50RQWKO\ 1HZVOHWWHU 2FW'HF 2FW0DU 2FW-XQ 2FW6HS Fiscal Year 2015-2016 Fiscal Year 2016-2017 Fiscal Year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iscal Year to Date Earnings 0RQWKV 0RQWKV 0RQWKV 0RQWKV CITY OF DENTON : QUARTERLY INVESTMENT REPORT Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015 'HF0DU-XQ6HS'HF0DU-XQ6HS'HF0DU-XQ6HS'HF0DU-XQ6HS'HF0DU-XQ6HS'HF0DU-XQ6HS Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark* )<)<)< )< )<)< 6HFWLRQ5 &LW\RI'HQWRQ 4XDUWHUO\)LQDQFLDO5HSRUW 'HFHPEHU PERFORMANCE REPORT STRATEGIC PLAN 2017-18 The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that capture the City’s Vision, Mission, and Value statements. The first Strategic Plan was formally approved by the City Council in April 2011, and it has been updated periodically since that time. Over the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our strategic outcomes and identify measurable ways to mark our progress. The City Council approved the FY 2017-18 Strategic Plan and associated performance measures on September 19, 2017. The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the FY 2017-18 Budget. The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified below. Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high-performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve high level of customer satisfaction. Goal 1.5 Utilize technology to enhance efficiency and productivity. Goal 1.6 Collaborate with local, regional, state, and federal partners. Key Focus Area 2: Public Infrastructure Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs. Key Focus Area 3: Economic Development Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth. Goal 3.2 Make Denton a destination for visitors. Goal 3.3 Promote a business-friendly environment. Goal 3.4 Encourage development, redevelopment, recruitment, and retention. Key Focus Area 4: Safe, Liveable and Family Friendly Community Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities. Goal 4.5 Provide support to citizens in need through social service agencies and programs. Key Focus Area 5: Sustainable & Environmental Stewardship Goal 5.1 Manage Denton’s water resources. Goal 5.2 Improve air quality and greenhouse gas management. Goal 5.3 Improve energy efficiency and conservation. Goal 5.4 Manage land use and preserve open/natural spaces. Goal 5.5 Provide alternative modes of transportation. Goal 5.6 Promote sustainable materials resource management. Goal 5.7 Encourage local food production. STRATEGIC PLAN 2017-18 The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization. While every department has some level of responsibility for each KFA, the matrix is intended to only highlight the primary departments responsible for each KFA. SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 UTILITIES Electric 9 Water 999 9 Wastewater 9 9 Solid Waste 9 INTERNAL SERVICES Technology Services 9 Materials Management 9 Fleet 9 9 Risk 9 NEIGHBORHOOD SERVICES Building Inspection 999 Community Improvement Services 9 Libraries 9 Parks and Recreation 9 Planning 999 Gas Well Operations 9 Community Development 9 PUBLIC SAFETY Animal Services 9 Fire 9 Police 9 Municipal Court 9 TRANSPORTATION Airport 9 Streets 9 Traffic/Transportation 9 9 ADMINISTRATIVE SERVICES City Manager’s Office 9 Economic Development 9 Facilities Management 9 Finance 9 9 Human Resources 9 Internal Audit 9 Legal 9 Public Communications 9 Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Economic Development Key Focus Area 4: Safe, Liveable and Family-Friendly Community Key Focus Area 5: Sustainable & Environmental Stewardship STRATEGIC PLAN PERFORMANCE REPORT 2017-18 CCity of Denton, Texas A visual representation of performance measures can be found on the City of Denton website: http://data.cityofdenton.com/showcase/strategic-measures SSTRATEGIC PLAN PERFORMANCE MEASURES DASHBOARD 2017-18KEY FOCUS AREADEPARTMENT STRATEGIC PLAN PERFORMANCE MEASURESTARGET 1ST QTRPERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS85% 95.4%PERCENTAGE OF BILLING ACURACY99% 99.99%PERCENTAGE OF PAYMENTS PROCESSED VIA ONLINE SELF-SERVICE55% 62.1%PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION65% 60%NUMBER OF FOLLOWERS ACROSS ALL CITY SOCIAL MEDIA SITES165,000 195,285PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE100% 115.2%PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED EXPENDITURES<100% 94.7%ANNUAL RATE OF INVESTMENT RETURN1.25% 1.29%ENGINEERINGPERCENTAGE OF BOND FUNDED PROJECTS COMPLETED85% 0%LANE MILES OF ASPHALT ROADWAY RECONSTRUCTED12 2LANE MILES OF ASPHALT ROADWAY OVERLAID15 2LANE MILES OF ASPHALT ROADWAY MICRO-SEALED45 0MILES OF SIDEWALK RECONSTRUCTED20AIRPORTNUMBER OF ACRES OF AIRPORT LAND NEWLY LEASED70NUMBER OF RFP'S RETURUNED IN TARGET INDUSTRY SECTORS20 2NUMBER OF WORKFORCE DEVELOPMENT ACTIVITIES OR GRANTS FACILITATED12 18NUMBER OF DOWNTOWN PROPERTIES REDEVELOPED64NUMBER OF BUSINESS RETENTION VISITS IN THE DOWNTOWN AREA24 5NUMBER OF BUSINESS RETENTION VISITS IN AREAS OTHER THAN DOWNTOWN48 10POLICEPERCENT OF RESOLVED NEIGHBORHOOD COMPLAINTS75% 100%PERCENT OF ACTIVE STRUCTURE FIRES RESPONDED TO IN FIVE MINUTES OR LESS (NFPA 1710 STANDARD IS 90 PERCENT OR LESS THAN FOUR MINUTES)90% 43.3%AVERAGE UNIT TURN-OUT TIME (TIME FROM WHEN A 911 DISPATCH IS RECEIVED TO WHEN UNITS ARE EN ROUTE)1:20 1:16PARKSNUMBER OF SPECIAL EVENTS HOSTED BY THE PARKS & RECREATION DEPARTMENT83NUMBER OF INDIVIDUALS REACHED BY THE DENTON PUBLIC LIBRARY "DPL2GO" OUTREACH SERVICE5,000 5,298NUMBER OF "DPL2GO" OUTREACH EVENTS60 47SOLID WASTEPOUNDS OF WASTE DISPOSED PER CAPITA1,900 438MILES OF ON-STREET BIKE INFRASTRUCTURE, SUCH AS BIKE LANES AND SHARROWS, ADDED DURING FISCAL YEAR 2017-1870NUMBER OF TRANSPORTATION SAFETY EDUCATIONAL OPPORTUNITIES AND EVENTS11 3NUMBER OF SUSTAINABILITY RELATED WORKSHOPS HOSTED BY THE CITY35 9%PERCENT OF GREENSENSE REBATE FUNDING EXPENDED100% 10%ENGINEERINGENVIRONMENTAL SERVICESKFA 5: SUSTAINABLE AND EVIRONMENTAL STEWARDSHIPFINANCESTREETSKFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITYFIRELIBRARYKFA 3: ECONOMIC DEVELOPMENTKFA 1: ORGANIZATIONAL EXCELLENCECUSTOMER SERVICEPUBLIC COMMUNICATIONSKFA 2: PUBLIC INFRASTRUCTURE ECONOMIC DEVELOPMENT STRATEGIC PLAN WORK PLAN REPORT 2017-18 CCity of Denton, Texas SSTRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANSTARGET DATE1ST QTRImplement online payment and citizen service request systems Dec 2017The City has accepted proposals and is working with a vendor to begin implementation.Launch a bi-monthly newsletter for citizens and stakeholders Dec 2017The inaugural issue of the Resident Update was mailed to all Denton residents on October 1, 2017. This newsletter will continue to be mailed bi-monthly to citizens and stakeholders.Expand open data initiatives and improve citizen access to information Sep 2018There are currently 148 datasets available on the City's open data website http://data.cityofdenton.comHold regular performance management meetings with departments and executive teamSep 2018The City's first quarterly performance meeting was held on November 17, 2017 with departments and the executive team. These meetings will continue quarterly.Offer key indicators of the City’s performance through an online dashboardDec 2017A dashboard of the City's performance related to strategic plan measures is located at http://data.cityofdenton.com/base/strategic-performance-measuresEvaluate purchasing and contract management policies and procedures Jun 2018Staff has been working to update these policies and procedures. A draft policy is expected to go before council during Quarter 2.Complete 80% of construction on the new West Parallel Runway Sep 2018The Environmental Assessment approval was delayed, the approval is anticipated in the second quarter.Complete the Airport Business Plan Update Sep 2018Outside Legal council contracted for compliance review.TrafficEngage a consultant to assist with review of railroad crossings in the city, as well as possible Quite ZonesSep 2018A field review with FRA and UP staff has been completed and the consultant has identified the proposed improvements to Complete 85% of scheduled street improvement projects for Fiscal Year 2017-18Sep 2018Completed 10% projects during the first quarter.Complete the 2012 and 2014 bond programs for street improvements Sep 2018First quarter production was delayed because of inclement weather and sub-freezing temperatures. However we are schedule to complete 16 bond segments during the second quarterEcon DevelopmentActively recruit prospects from target industries, as identified by the Economic Development Partnership BoardSep 2018Economic Development returned two request for proposal (RFP) responses in Q1, which is 10% of the FY17-18 target. RFP issuances are slow in Q1, but we expect them to pick up in Q2 and Q3.-The Department has expedited communication to applicants by providing review comments earlier in the process.-Cleared the backlog of project applications for review, and provided current and relevant data.Dec 2017-Reduced the number of inspectors visiting the same location and the number of required customer calls for final inspections with Building Inspections and Fire Prevention.-Completed an operational survey of 27 comparable cities across Texas to better align with state-wide best practices to save time and money for customers.-Stakeholder meetings to communicate initial changes were held in November 2017.Implement recommendations to improve the development review and building inspections processesKFA 2: PUBLIC INFRASTRUCTURE City Manager OfficeKFA 1: ORGANIZATIONAL EXCELLENCEDevelopment ServicesKFA 3: ECONOMIC DEVELOPMENTAirportCapital Projects SSTRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANSTARGET DATE1ST QTRComplete the Denton Code 2030 Update June 2018Clarion Associates along with Development Services reported and delivered the Denton Development Code (DDC) rewrite to the community. The draft document is currently under review by City staff. The next phase will accommodate stakeholder feedback. It is anticipated that the project will be complete in May 2018.Complete updates to building standards and design policies under the City’s Site Design Criteria Manual and related documentsJune 2018The Engineering Department is soliciting feedback for final comments with stakeholders and it is expected to be submitted to Council in late March.Complete remodel of the Public Safety Communications Center Sep 2018The details of the plans for the remodel are being finalized with the architect and Technology Service. Construction will begin in the spring.Purchase and implement a new Computer Aided Dispatch (CAD) system to upgrade technology and improve public safety response, data and recordsJune 2018Police, Fire and Technology Service have been meeting with Purchasing and the consultant, Mission Critical Partners, in an effort to develop an RFP for the new CAD/RMS system that will meet the needs of all partners. The RFQ is expected to be out in mid February.Implement an Automatic Fire Station Alerting System Sep 2018Station Alerting is a multi-year strategy with US Digital Designs. Station 2 is operating with the new system, and a PO has been issued for Station 1 and 5. Quotes are being obtained for Station 6 and temporary Station 8. Station 3 and 4 will implement the new alerting system upon completion of the rebuilds, and funding for Station 7 will be a supplemental funding request for the FY 18-19 Budget.Add on Fire Medic unit in the Northeast Denton area June 2018The Medic unit at Station 4 is planned to go into service April 2018. Recruitment testing is currently taking place, and Fleet Services has the purchase of the ambulance on the Council Agenda for 2/6/2018.Complete construction of Fire Station #4March 2018The construction commenced in March of 2017. The project is currently ahead of scheduled and is projected to be completed in April 2018.Use GIS mapping to determine population distribution in relation to City recreational amenitiesSep 2018 Staff is working with GIS to provide maps.Implement recommendations from Denton Parks playground replacement planSep 2018Playground specifications for Milam, Denia, and Fred Moore Parks are complete. TNP has been engaged to provide site plans for each location.Community DevelopmentContinue partnership with the Denton County Homeless Leadership team to collect and analyze data on housing and service needsSep 2018The Mayor and a Councilmember are members of HLT and CD staff serves on the HLT Housing and Data Workgroups. The City partially funds the Homeless Management Information System database with seven agencies currently reporting in the same database on housing and service needs. The City funds, in part, $40,000 for the Homeless Coordinator and $40,000 for the Coordinated Entry Data Coordinator who manages the data collection and analysis.Public SafetyFireParksDevelopment ServicesKFA 3: ECONOMIC DEVELOPMENTKFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITY SSTRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANSTARGET DATE1ST QTRDevelop a comprehensive public education program to educate residents on code requirementsSep 2018A public education program is in development, the program is aligned with the re-write of the Denton Development Code, updates to the building and fire code, and various initiatives underway.Engage homeowner's associations and neighborhod groups to improve neighborhoods through code complianceSep 2018Staff continues to host community engagement sessions and has taken actions to expand the outreach opportunities.ElectricComplete construction of the Denton Engergy Center Sep 2018Construction on the Denton Energy Center (DEC) is approximately 89% complete. Contracting with Enterprise for pre-commercial ‘test’ natural gas has been completed and an IFB for longer term commercial supply has been issued. Expenditures to date are approximately 72.4% of the allocated project funds. The target date to begin performance testing is late spring 2018. The target date for commercial operation is early summer 2018.Solid WasteComplete construction of Cell 3 to expand capacity at the landfill Sep 2018The construction of Cell 3 is in progress, and staff anticipates the new cell to be ready to accept waste by the end of March 2018Environmental ServicesEngage the community and update the City's 2012 Sustainability Plan March 2018Reviewed Sustainability Plan and compared with STAR communities checklist to develop strategies that will achieve goals of improving Community and Municipal Sustainability and our STAR community rating. Prepared for Internal stakeholder meeting to include STAR communities update, and STAR/ Sustainability plan crosswalk and began establishing timeline for community outreach to begin in the second quarter.ElectricReview the City's renewable energy portfolio and present options to increase renewable energyDec 2017DME’s General Manager, George Morrow recently presented, requested and gained approval for, by resolution, the Denton Renewable Resource Plan ‘DRRP’. With existing portfolio resources of solar and wind, ongoing review of RFP responses with a view to an award and future solicitations identified in DRRP, Denton’s renewable portfolio continues towards its accelerated goal of 100% by the 2020 timeframe.Development ServicesKFA 5: SUSTAINABLE AND EVIRONMENTAL STEWARDSHIPKFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITY City Hall, Denton Seal