2018-111 3rd Quarterly Financial ReportDate: August 31, 2018 Report No. 2018-111
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending June 30, 2018.
BACKGROUND:
Attached for your review is the Quarterly Financial Report for the period ending June 30, 2018.
If you have any questions or need additional information, please let me know.
STAFF CONTACT:
Antonio Puente, Jr., Director of Finance
(940) 349-7283
Antonio.Puente@cityofdenton.com
1
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City’s
financial position and economic activity. This report includes
information for the quarter ending June 30, 2018.
This report is presented in six sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides an end of year projection and a comparison to the
budget for major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report provides a summary of the
City’s investment portfolio, interest earnings and a brief market
outlook.
5. The Performance Report provides Key Performance Indicators
(KPIs) for each of the goals identified in the City’s strategic
plan. In addition, the progress on Key Action Steps are
highlighted.
6. The G.O. Bond Program Report provides updates of each of
the Bond Propositions from the 2012 and 2014 bond elections.
2
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Antonio Puente, Jr
Director of Finance
215 East McKinney Street
Denton, TX 76201
940-349-8260
3
Section 1
City of Denton
Quarterly Financial Report
June 2018
Executive Dashboards
4
Note: All figures presented are in millions of dollars.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 45.07 44.87 0% Sales Tax 36.18 39.45 9% Franchise Fees 4.98 4.98 0% Other Taxes 0.49 0.49 0% Service Fees 8.34 7.96 -5% Fines and Fees 3.96 3.71 -6% Licenses and Permits 2.73 3.75 37% Miscellaneous Revenue 1.92 2.10 9% Transfers In 16.05 16.04 0%Total Revenues 119.72 123.35 3%Total Resources 147.89 155.12 EXPENDITURES : Personal Service 84.40 83.92 -1% Material and Supplies3.06 3.06 0% Maintenance and Repairs2.93 2.93 0% Insurance1.21 1.21 0% Miscellaneous1.18 1.18 0% Operations15.87 14.93 -6% Transfers Out15.81 15.86 0% Fixed Assets0.59 0.59 0%Total Expenditures125.05 123.68 -1%Net Income (Loss)(5.33) (0.33) Ending Fund Balance22.84$ 31.44$ City of Denton, Texas General Fund Executive Dashboard $‐ $20 $40 $60 $80 $100 $120Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsSales Tax revenues are projected $3.27M higher than budget due to stronger collections in retail activities. Service Fees revenues are projected $0.38M lower than budget mainly due to Ambulance Service Fees.Licenses and Permits revenues are projected $1.02M higher than budget due to Building Permits.Personal Service expenditures are projected $0.48M lower than budget due to position savings.Operations expenditures are projected $0.94M lower than budget mainly due to Chapter 380 agreements. Transfers Out expenditures include budget amendment of $478,191 to be presented to Council in September 2018. $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5Sales Tax Monthly Average by Quarter1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which wasestimated in the FY 2017‐18 budget process.5
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardDESCRIPTIONFY 2017-18 ANNUAL BUDGET 1FY 2017-18 ANNUAL PRO JEC TIO NS FY 2017-18 VARIANCEBeginning Working Capital and Reserves as of 9/30/17 72.51$ 76.94$ RESOURCES: Rate Revenues 147.67 142.25 -4% DEC Revenue - 31.01 31% Transmission Revenue 20.19 34.91 73% Other Revenues 5.82 6.01 3%Total Revenues 173.68 214.18 23%Total Resources 246.19 291.12 EXPENDITURES: Purchased Power 78.97 98.52 25% DEC Fuel - 9.05 9% Transmission of Power 5.58 5.58 0% Personnel Service 19.19 19.15 0% Operation and Maintenance 28.99 25.04 -14% Debt Service 34.40 34.36 0% Transfers Out 12.52 12.36 -1% Capital Outlay 25.25 24.11 -5%Total Expenditures 204.90 228.17 11%Net Income (Loss) (31.22) (13.99) Ending Working Capital and Reserves 41.29$ 62.95$ $0$20$40$60$80$100$120$140$160$180Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb ‐ 18 Mar‐18 Apr‐18 May‐18 Jun‐18Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsRevenues are projected to be 23% higher than budgeted. TCOS Revenue is expected to be $14.7 million more as a result of the latest DME Transmission filing, and DEC Revenue is expected to be $31.0 million as a result of the DEC being operational earlier than expected.Purchased Power is expected to be $19.6 million more than budgeted and DEC Fuel is expected to be $9.0 million more than budgeted as a result of the DEC being operational earlier than anticipated. Operations and Maintenance expenditures are estimated to be 14% or $4.0 million less than budgeted as a result of licenses, consultants, attorney fees, travel and training, and advertising expenditures being lower than expected. A budget amendment was approved this quarter in the amount of $24 million to cash fund the CIP and is included in Capital Outlay. As of 9/30/17, working capital was $14.91 million, and the rate stabilization reserve was $62.03 million.Additionally, Electric had an over collected Energy Cost Adjustment (ECA) of $2.1 million.A budget amendment will be requested in September to cover the increase in DEC expenditures.0501001502002503003504004505001Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q182013 – 2018 Historical Quarterly GWH Sales1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.6
Note: All figures presented are in millions of dollars.FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTIONBUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17220.85$ 23.34$ RESOURCES: Water Sales 37.12 36.88 -1% Other Water Revenues 0.98 0.97 -1% Transfers In 5.95 5.81 -2% Impact Fee Revenue 3.76 3.76 0%Total Revenues 47.81 47.42 -1%Total Resources 68.66 70.76 EXPENDITURES: Personal Service 11.41 10.96 -4% Operations, Services 11.18 10.77 -4% Capital Outlay 9.11 9.17 1% Debt Service 12.64 12.64 0% Transfers Out 3.47 3.49 1%Total Expenditures 47.81 47.03 -2%Net Income (Loss) - 0.39 Ending Working Capital and Reserves 20.85$ 23.73$ 05001,0001,5002,0002,5001Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q183Q182013‐2018 Historical Quarterly Gallons Sold (in Millions)City of Denton, Texas Water Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30 $35 $40Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsPersonal Service expenses are projected to be below budget due to position vacancies.Operations, Services are projected to be below budget due to reduced materials & supplies and outside services expenses.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $6.7M of Impact Fee Reserves and $0.25 million for Development Plan Line Reserves.7
FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17215.93$ 17.86$ RESOURCES: Wastewater Fees 24.14 24.23 0% Other Wastewater Revenue 1.76 1.78 1% Drainage Fees 4.67 4.65 0% Transfer In 0.66 0.66 0% Impact Fee Revenue 2.00 2.00 0%Total Revenues 33.23 33.32 0%Total Resources 49.16 51.18 EXPENDITURES: Personal Service 8.10 7.62 -6% Operations, Services 8.59 8.22 -4% Capital Outlay 6.87 7.17 4% Debt Service 7.17 7.17 0% Transfer Out 3.29 3.15 -4%Total Expenditures 34.02 33.33 -2%Net Income (Loss) (0.79) (0.01) Ending Working Capital and Reserves 15.14$ 17.85$ Note: All figures presented are in millions of dollars.02004006008001,0001,2001,4001Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q183Q182013‐2018 Historical Quarterly Gallons Billed (in Millions)City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsPersonal Service expenses are projected to be below budget due to position vacancies.Operations, Services are projected to be below budget due to reduced materials & supplies, outside services, and purchased power expenses.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $2.2 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.33 million for Development Plan Line Reserves.8
FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET PROJECTION VARIANCEREVENUES: Residential Drainage Fees 1.78$ 1.79$ 1% Nonresidential Drainage Fees 2.90 2.86 -1% Wastewater Resources 0.04 0.10 150% General Fund Transfer 0.42 0.42 0%Total Revenues 5.14 5.17 1%EXPENDITURES: Personal Service 1.78 1.54 -13% Operations, Services 0.80 0.77 -4% Capital Outlay 1.28 1.56 22% Debt Service 0.68 0.68 0% Transfer Out 0.60 0.62 3%Total Expe n di tu re s 5.14 5.17 1%Net Income (Loss) -$ -$ Note: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive Dashboard $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsPersonal Services are projected to be lower than budget due to position vacancies.Capital Outlay is projected to be higher than budget due to an increase in projects activity.9
FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTIONBUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/1728.15$ 9.47$ RESOURCES: Collection & Disposal 35.86 32.62 -9% Recycling 0.87 0.78 -10% Other Revenue 1.29 0.70 -46%Total Revenues 38.02 34.10 -10%Total Resources 46.17 43.57 EXPENDITURES: Personal Service 11.68 10.51 -10% Operations, Services 11.69 9.17 -22% Capital Outlay 2.49 1.97 -21% Debt Service 9.70 9.54 -2% Transfer Out 3.74 3.74 0%Total Expenditures 39.30 34.93 -11%Net Income (Loss)(1.28) (0.83) Ending Working Capital and Reserves6.87$ 8.64$ 01,0002,0003,0004,0005,0006,0007,0002016Qtr 42017Qtr 12017Qtr 22017Qtr 32017Qtr 42018Qtr 12018Qtr 22018Qtr 3Refuse TonnageRecycling TonnagesResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsCollection and Disposal revenue, as well as Personnel and Operations Services expense will be less than budget due to discontinued mining operations.Landfill Closure costs will be greater than budget due to a recent study which projected increased future expense. Capital Outlay is expected to be less than budget due to reduced transfers to Capital projects.Transfers out include land transfers to DME.05,00010,00015,00020,00025,00030,0002016Qtr 42017Qtr 12017Qtr 22017Qtr 32017Qtr 42018Qtr 12018Qtr 22018Qtr 3Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per WeekCommercial RefuseCommercial Recycling1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital and Reserves excludes $8.65 million of Landfill Closure/Post Closure reserves.10
City of Denton, Texas Airport Fund Executive DashboardKey TrendsFBO Commissions include a one‐time collection of $55,000 not originally included in budget.Personnel Service Expense is projected to be less than budget due to vacant positions.Gas Well Royalty revenue will be less than budget due to recently reworked gas wells.$0.0$1.0$2.0$3.0$4.0$5.02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing)Note: All financial amounts presented are in millions of dollars.FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTION BUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/17 2.47$ 2.75$ RESOURCES: Airport Ground Leases 0.71 0.68 -4% FBO Commissions 0.20 0.26 30% Miscellaneous 0.09 0.10 11%Total Operating Revenues 1.00 1.04 4%EXPENDITURES: Personal Service 0.53 0.45 -15% Operations, Services 0.41 0.40 -2% Transfer Out 0.55 0.55 0%Total Operating Expenditures 1.49 1.40 -6%Net Operating Income (Loss) (0.49) (0.36) NON-OPERATING REVENUES: Investment Income 0.03 0.06 100% Gas Well Royalties 0.47 0.44 -6%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) (0.08) Ending Working Capital and Reserves 2.26$ 2.67$ 1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2017‐18 budget process.11
FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18DESCRIPTIONBUDGET 1PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/2017 1.25$ 1.16$ RESOURCES: Franchise Fees12.47 12.47 0% Street Cuts0.36 0.36 0% Investment Income0.01 0.01 0% Transfers In1.12 1.12 0%Total Revenues13.96 13.96 0%Total Resources15.21 15.12 EXPENDITURES: Personal Service3.44 3.44 0% Materials & Supplies0.09 0.09 0% Maintenance & Repairs7.79 7.79 0% Operations, Services0.89 0.89 0% Transfer Out1.75 1.75 0%Total Expe n di tu re s13.96 13.96 0%Net Income (Loss)- - Ending Fund Balance1.25$ 1.16$ 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsAt this point in the fiscal year, revenues and expenditures are projected to meet budgeted levels.Surface treatments for the year are scheduled to begin in the 4th quarter.Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3Tons of Asphalt Laid (in Thousands)FY16-17FY17-180612182430364248Qtr 1 Qtr 2 Qtr 3Lane Miles Surface TreatmentFY 16-17FY 17-18 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18Revenue & Expenses (in Millions)YTD RevenueYTD Expenses12
FY 2017-18 FY 2017-18GRANT ANNUAL FY 2017-18DESCRIPTION AMOUNT PROJECTION VARIANCE2017-18 Budget Comm Development12.94$ 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 Comm Development 0.60 0.50 -17% Public Safety 0.36 0.36 0% Transportation13.39 1.48 -56% Parks & Recreation 0.21 0.21 0% Other 0.19 0.19 0%Total New Awards 4.75 2.74 -42%Totals 103.66$ 31.60$ -70%COMM DEV3.42%PUBLIC SAFETY1.11%TRANS95.04%PARKS & REC0.20%OTHER0.23%FY 2017‐18 Grants Awarded $‐ $20.0 $40.0 $60.0 $80.0 $100.0 $120.0COMMDEVPUBLICSAFETYTRANSPARKS &RECOTHERAwardsExpensesFY 2017‐18 Awards & Expenses (in Millions)Key TrendsThe following grants have been received in FY 2017-18: Emergency Solutions Grant: $600,000Federal Equitable Sharing: $23,420Chapter 59 Asset Forfeitures: $107,248U.S. Marshals Violent Offenders Task Force: $20,180PD-Law Enforcement Officer Standard & Education:$12,467Sexual Assault Examiners Reimbursement:$31,5962017 SHSP Ballistic Blankets: $3,0002017 SHSP Night Vision: $14,2002017 UASI Command Data: $30,000Body Armor Grant Program: $91,6922018 SHSP SWAT Equipment Enhancement: $24,000Transportation Projects: $3,387,898NW Trail Extension Grant: $212,273Texas Parks & Wildlife-CCNHC: $199,613City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.1This grant amount will be spent over several years and the fiscal year 2017-18 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.13
Section 2
City of Denton
Quarterly Financial Report
June 2018
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
14
City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Current Year - Ad Valorem 43,115,876$ 44,460,191$ 44,207,271$ 44,460,191$ 44,460,191$ 0%
Delinquent - Ad Valorem 215,746 190,734 74,528 288,991 100,000 -65%
Miscellaneous Penalties & Fees 295,024 246,518 271,219 315,384 309,285 -2%
Ad Valorem Taxes 43,626,646 44,897,443 44,553,018 45,064,566 44,869,476 0%
Sales Tax 27,001,092 27,139,656 28,455,130 36,181,384 39,452,935 9%
Franchise - Gas Utilities 273,906 220,039 288,782 342,739 342,739 0%
Franchise - Private Electric Utilities 58,872 33,774 54,067 122,750 122,750 0%
Franchise - Cable 249,595 247,044 206,681 480,873 480,873 0%
Franchise - Telecom 196,176 120,193 142,998 233,956 233,956 0%
Franchise - Denton Municipal Utilities 2,810,007 2,698,413 2,637,828 3,804,531 3,804,531 0%
Franchise Fees 3,588,556 3,319,463 3,330,356 4,984,849 4,984,849 0%
Other Taxes 310,818 245,700 153,629 491,400 491,400 0%
Ambulance Service Fees 2,044,177 2,223,663 1,924,018 3,726,629 3,380,800 -9%
Fire Department Fees 138,102 146,270 173,266 195,027 196,000 0%
Building Inspections Fees 364,650 415,361 444,475 560,145 532,247 -5%
Park Department Fees 1,072,611 1,336,402 1,291,744 2,406,263 2,298,651 -4%
Planning Department Fees 565,233 664,804 827,380 886,355 998,065 13%
Reprographics Fees 249,000 277,657 249,668 370,160 370,160 0%
Miscellaneous Service Fees 84,482 148,539 105,124 198,043 183,015 -8%
Service Fees 4,518,255 5,212,696 5,015,675 8,342,622 7,958,938 -5%
Denton Municipal Fines 1,154,724 1,236,781 1,079,914 1,649,042 1,482,000 -10%
Parking Fines 201,020 185,400 169,078 247,200 260,000 5%
Miscellaneous Fines and Fees 680,709 785,559 630,840 1,077,838 889,000 -18%
Court Administrative and Service Fees 703,901 708,500 758,373 988,000 1,080,000 9%
Fines and Fees 2,740,354 2,916,240 2,638,205 3,962,080 3,711,000 -6%
Demolition Permits 5,035 7,561 4,180 10,082 7,670 -24%
Building Permits 1,799,444 1,923,895 2,439,247 2,571,085 3,638,055 41%
Certificate of Occupancy 58,425 70,866 46,875 94,488 72,829 -23%
Miscellaneous Licenses and Permits 39,570 41,869 21,944 55,822 32,278 -42%
Licenses and Permits 1,902,474 2,044,191 2,512,246 2,731,477 3,750,832 37%
Investment Income 309,572 397,500 448,902 530,000 460,600 -13%
Miscellaneous Revenues 951,148 774,869 1,137,007 1,383,388 1,635,243 18%
Miscellaneous Resources 1,260,720 1,172,369 1,585,909 1,913,388 2,095,843 10%
ROI - Denton Municipal Utilities 5,174,277 5,763,779 5,582,042 7,997,918 7,987,758 0%
Transfers 6,050,783 6,038,240 6,028,098 8,050,688 8,050,688 0%
Transfers 11,225,060 11,802,019 11,610,140 16,048,606 16,038,446 0%
Total General Fund Revenues 96,173,975$ 98,749,777$ 99,854,308$ 119,720,372$ 123,353,719$ 3%
15
City of Denton
General Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION 1 PROJECTION
NEIGHBORHOOD SERVICES
Building Inspections 2,204,999$ 2,302,655$ 2,064,831$ 3,071,315$ 3,071,315$ 0%
Community Improvement Services 1,282,621 1,173,391 1,057,997 1,564,294 1,564,294 0%
Libraries 4,404,528 4,548,729 4,349,109 6,064,112 6,064,112 0%
Parks and Recreation 8,786,937 10,623,957 9,576,809 13,971,655 13,971,655 0%
Planning 2,153,562 2,563,129 2,272,589 3,415,509 3,415,509 0%
Gas Well Review 135,222 294,820 306,405 393,026 393,026 0%
Social Services 423,437 472,376 451,346 629,738 629,738 0%
19,391,306 21,979,057 20,079,086 29,109,649 29,109,649 0%
PUBLIC SAFETY
Animal Services 1,029,705 1,169,568 1,154,755 1,559,205 1,559,205 0%
Fire 20,369,858 21,536,602 22,149,770 28,776,580 28,941,353 1%
Municipal Court 998,782 1,036,423 944,423 1,381,702 1,381,702 0%
Municipal Judge 292,683 327,138 300,265 436,124 436,124 0%
Police 22,136,101 24,226,595 23,409,531 32,297,806 32,297,806 0%
44,827,129 48,296,326 47,958,744 64,451,417 64,616,190 0%
TRANSPORTATION
Traffic Operations 1,331,808 3,524,218 3,271,367 4,042,028 4,042,028 0%
Transportation Operations 350,690 635,089 496,386 796,658 796,658 0%
Street Lighting 595,111 566,326 597,651 755,000 755,000 0%
2,277,609 4,725,633 4,365,404 5,593,686 5,593,686 0%
ADMINISTRATIVE & COMMUNITY SERVICES
Cable Television 225,801 242,491 234,429 323,271 323,271 0%
City Manager's Office 2,087,284 2,122,273 2,160,313 2,829,303 2,829,303 0%
Economic Development 2,397,371 3,344,020 1,634,344 4,458,071 3,353,387 -25%
Facilities Management 2,762,786 3,243,924 2,899,817 4,324,642 4,324,642 0%
Finance 2,137,511 2,305,691 2,209,506 3,074,420 3,074,420 0%
Human Resources 1,241,071 1,317,086 1,297,822 1,755,865 1,755,865 0%
Internal Audit 92,709 197,569 297,113 263,381 263,381 0%
Legal Administration 1,585,636 1,840,583 1,485,253 2,453,772 2,453,772 0%
Public Communications Office 332,450 371,321 305,594 495,021 495,021 0%
Reprographics 323,723 325,283 301,314 433,646 433,646 0%
Non-Departmental 3,032,960 4,352,422 5,616,519 5,485,329 5,057,186 -8%
16,219,302 19,662,663 18,442,024 25,896,721 24,363,894 -6%
TOTAL EXPENDITURES 82,715,346$ 94,663,679$ 90,845,258$ 125,051,473$ 123,683,419$ -1%
1Annual Budget and Annual Projection include a $478,191 budget amendment to be presented to Council in September 2018.
16
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION2 PROJECTION
Beginning Working Capital
and Reserves as of 9/30/17 72,510,304$ 76,942,756$
REVENUES:
Non-DEC Rate Revenues 95,384,337$ 99,555,094$ 109,984,527$ 147,671,417 142,247,739 -4%
DEC Revenue - - - - 31,010,383
Transmission Revenues 11,819,406 13,370,846 16,070,591 20,192,678 34,909,157 73%
Other Revenues 10,039,975 3,967,553 5,358,306 5,815,689 6,010,620 3%
Total Revenues 117,243,718 116,893,493 131,413,424 173,679,784 214,177,899 23%
EXPENDITURES:
Purchased Power 62,382,288 61,200,660 61,479,586 78,968,736 98,519,899 25%
DEC Fuel - - - - 9,051,826
Transmission of Power 2,837,652 3,773,385 2,842,161 5,578,948 5,578,948 0%
Personnel Services 12,497,058 13,975,360 12,171,590 19,188,818 19,151,317 0%
Materials and Supplies 613,086 1,129,977 471,804 1,744,334 1,268,680 -27%
Maintenance and Repair 621,603 1,247,910 402,194 1,707,093 1,394,600 -18%
Insurance 243,507 1,527,211 194,950 719,597 719,596 0%
Return on Investment Return on Investment3,669,422 3,920,622 4,020,221 5,767,985 5,767,985 0%
Franchise Fee Franchise Fee5,233,561 5,594,692 5,744,978 8,239,978 8,239,978 0%
Miscellaneous 357,347 1,085,149 491,054 1,284,258 674,305 -47%
Operations 3,363,390 7,050,996 2,980,192 9,534,975 6,979,701 -27%
Debt Service 26,696,154 31,626,333 31,626,333 34,399,150 34,360,369 0%
Interfund Transfers 8,521,784 9,387,598 9,234,285 12,516,797 12,357,797 -1%
Capital Outlay - 24,183,884 24,183,884 24,683,884 24,105,000 -2%
Fixed Assets - 426,900 13,096 569,200 - -100%
Total Expenditures 127,036,852 166,130,677 155,856,328 204,903,753 228,170,001 11%
Net Income (Loss)(9,793,134)$ (49,237,184)$ (24,442,904)$ (31,223,969) (13,992,102)
Ending Working Capital and Reserves 41,286,335$ 62,950,654$
1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
2 Due to the DEC being operational earlier than anticipated a budget amendment will be requested in September to cover the increase in DEC expenditures.
17
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2018
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 11,893,723$ 12,431,478$ 12,957,395$ 19,550,225 18,585,215 -5%
Water Sales Commercial 11,086,735 11,578,684 11,555,785 17,016,173 16,575,408 -3%
Water for Resale 688,743 421,304 2,103,263 553,406 1,719,330 211%
Other Water 963,588 574,248 1,013,326 811,832 800,099 -1%
Transfers In 4,799,681 4,460,461 4,460,461 5,947,281 5,808,155 -2%
Investment Income 152,385 131,250 203,682 175,000 174,000 -1%
Impact Fee Revenue 3,000,400 2,816,553 2,816,929 3,755,404 3,755,404 0%
Total Revenues 32,585,255 32,413,978 35,110,841 47,809,321 47,417,611 -1% Use of Reserves - - - -
EXPENDITURES:
Personal Service 7,324,109 8,018,453 7,539,530 11,408,173 10,963,036 -4%
Purchased Power 874,532 1,143,488 906,960 1,597,000 1,561,851 -2%
Materials and Supplies 1,051,457 1,171,644 1,113,587 1,721,614 1,686,976 -2%
Maintenance and Repairs 1,211,828 964,497 780,312 1,552,572 1,373,808 -12%
Insurance 179,212 166,861 166,861 222,481 219,101 -2%
Miscellaneous 257,392 256,136 187,524 342,778 338,969 -1%
Operations, Services 1,467,804 1,950,495 1,184,624 2,514,509 2,413,496 -4%
Capital Outlay 2,497,575 5,794,687 3,800,163 9,111,143 9,167,403 1%
Return on Investment 841,606 899,268 897,521 1,327,607 1,316,982 -1%
Franchise Fee 1,202,295 1,284,669 1,282,173 1,896,582 1,859,180 -2%
Debt Service 10,522,450 9,478,571 12,035,024 12,638,094 12,638,094 0%
Transfers Out 2,708,816 2,605,328 2,611,976 3,473,768 3,486,788 0%
Total Expenditures 30,139,076 33,734,097 32,507,601 47,809,321 47,025,684 -2%
Net Income (Loss)2,446,179$ (1,320,119)$ 2,603,240$ - 391,927
Ending Working Capital
and Reserves 20,851,375$ 23,732,828$
1 The Beginning Working Capital balance excludes $6,650,271 of Impact Fee Reserves and $250,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18
18
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/171 15,926,057$ 17,861,887$
REVENUES:
Residential Fees 8,744,949$ 8,306,695$ 9,058,029$ 11,103,223 11,030,267 -1%
Commercial Fees 9,037,102 8,952,947 8,833,574 12,306,031 12,450,498 1%
Effluent Irrigation Fees 73,378 36,011 65,719 61,530 67,076 9%
Wholesale Fees 470,497 493,619 436,884 667,670 686,659 3%
Other Wastewater Fees 1,501,584 1,176,254 1,090,632 1,642,282 1,659,542 1%
Drainage Fees 3,482,539 3,481,183 3,573,064 4,673,206 4,649,762 -1%
Transfer In 760,614 494,273 553,022 659,030 659,030 0%
Investment Income 110,966 88,125 168,600 117,500 117,500 0%
Impact Fee Reserves 2,640,352 1,500,000 1,500,200 2,000,000 2,000,000 0%
Total Revenues 26,821,981 24,529,107 25,279,724 33,230,472 33,320,334 0%
EXPENDITURES:
Personal Service 5,555,568 5,642,630 5,642,099 8,103,746 7,622,072 -6%
Purchased Power 719,890 944,959 768,801 1,221,000 1,020,000 -16%
Materials and Supplies 705,550 735,028 685,840 1,260,309 1,235,111 -2%
Maintenance and Repairs 794,181 998,283 840,832 1,464,909 1,433,129 -2%
Insurance 140,757 135,369 135,369 180,492 180,492 0%
Miscellaneous 45,016 50,315 40,366 54,631 53,551 -2%
Operations, Services 1,355,074 1,531,152 1,261,429 2,212,647 2,105,661 -5%
Capital Outlay 5,522,948 5,153,836 2,871,038 6,871,781 7,167,280 4%
Return on Investment 663,248 666,563 664,299 902,326 902,791 0%
Franchise Fee 947,498 952,233 948,999 1,289,037 1,289,702 0%
Debt Service 6,482,606 6,871,488 6,871,488 7,169,780 7,167,280 0%
Transfers Out 2,551,965 2,469,289 2,474,570 3,292,383 3,152,141 -4%
Total Expenditures 25,484,301 26,151,145 23,205,130 34,023,041 33,329,210 -2%
Net Income (Loss)1,337,680$ (1,622,038)$ 2,074,594$ (792,569) (8,876)
Ending Working Capital
and Reserves 15,133,488$ 17,853,011$
1 The Beginning Working Capital balance excludes $2,194,686 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $335,000 for Development Plan Line Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2017-18 budget process.
19
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
REVENUES:
Residential Drainage Fees 1,319,369$ 1,324,974$ 1,355,944$ 1,773,100$ 1,788,253$ 1%
Nonresidential Drainage Fees 2,163,170 2,156,172 2,217,120 2,900,106 2,861,509 -1%
Wastewater Resources - 32,850 - 43,800 100,000 128%
General Fund Transfer 376,002 318,023 318,022 424,030 424,030 0%
Total Revenues 3,858,541 3,832,019 3,891,086 5,141,036 5,173,792 1%
EXPENDITURES:
Personal Service 1,116,487 1,250,260 1,150,814 1,773,782 1,537,953 -13%
Materials and Supplies 28,653 59,316 32,241 82,425 82,120 0%
Maintenance and Repairs 57,847 107,527 53,238 131,300 122,200 -7%
Insurance 14,870 19,096 19,096 25,461 25,461 0%
Miscellaneous 12,411 13,840 7,681 16,000 16,000 0%
Operations, Services 234,548 416,867 258,687 549,531 531,509 -3%
Capital Outlay 1,296,378 1,004,395 1,260,538 1,281,581 1,555,786 21%
Debt Service 620,954 508,343 656,998 677,790 677,790 0%
Transfer Out 476,393 452,375 451,793 603,166 624,973 4%
Total Expenditures 3,858,541 3,832,019 3,891,086 5,141,036 5,173,792 1%
Net Income (Loss)-$ -$ -$ -$ -$
20
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
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 8,362,194$ 8,475,403$ 8,213,159$ 11,341,462 10,794,542 -5%
Garbage Fees - Commercial 10,961,557 11,939,828 11,543,470 16,127,040 15,365,434 -5%
Landfill Fees 4,580,597 5,035,819 4,415,929 6,836,245 6,330,540 -7%
Materials Processing 86,491 1,161,981 102,792 1,549,100 133,972 -91%
Recycling and Public Outreach 651,579 656,170 622,569 874,776 778,450 -11%
Site Operations 173,063 623,222 112,683 830,851 206,729 -75%
Other Revenue 247,802 332,708 439,611 443,550 444,749 0%
Investment Income 14,615 11,252 42,691 15,000 53,000 253%
Total Revenues 25,077,898 28,236,383 25,492,904 38,018,024 34,107,416 -10%
EXPENDITURES:
Personal Service 8,002,284 8,759,849 7,762,427 11,683,418 10,507,490 -10%
Materials and Supplies 305,688 386,363 161,147 523,955 301,495 -42%
Maintenance and Repairs 316,113 501,825 177,506 671,275 364,877 -46%
Insurance 168,377 175,249 175,223 233,631 233,631 0%
Miscellaneous 43,705 72,076 44,896 89,900 67,859 -25%
Operations, Services 4,647,381 5,885,057 3,897,002 7,890,268 5,363,512 -32%
Capital Outlay 2,306,692 1,897,414 847,120 2,489,510 1,970,000 -21%
Debt Service 7,776,861 9,200,029 9,200,029 9,700,467 9,542,116 -2%
Franchise Fee 1,244,493 1,425,870 1,273,090 1,900,902 1,702,293 -10%
Landfill Closure 199,184 284,106 284,067 378,757 1,143,059 202%
Transfer Out 2,095,241 2,999,505 3,042,926 3,740,685 3,740,685 0%
Total Expenditures 27,106,019 31,587,343 26,865,433 39,302,768 34,937,017 -11%
Net Income (Loss)(2,028,121)$ (3,350,960)$ (1,372,529)$ (1,284,744) (829,601)
Ending Working Capital
and Reserves 6,867,131$ 8,639,290$
1 The Beginning Working Capital Reserve excludes $8,654,114 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
21
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/17 2,471,421$ 2,748,875$
OPERATING REVENUES:
Airport Ground Leases 425,192$ 534,938$ 596,013$ 713,154 675,255 -5%
FBO Commissions 112,679 149,876 216,326 199,808 260,000 30%
Miscellaneous 52,056 69,473 76,007 92,619 106,800 15%
Total Operating Revenues 589,927 754,287 888,346 1,005,581 1,042,055 4%
OPERATING EXPENDITURES:
Personal Service 397,354 397,914 355,017 530,482 447,533 -16%
Materials and Supplies 15,825 35,033 13,946 46,700 44,330 -5%
Maintenance and Repairs 44,628 78,906 18,825 105,193 105,193 0%
Insurance 16,203 16,370 16,367 21,823 21,823 0%
Miscellaneous 551 901 349 1,200 800 -33%
Operations 93,752 178,648 86,879 238,160 232,912 -2%
Transfers Out - Operating 352,667 410,358 389,880 547,070 547,070 0%
Total Operating Expenses 920,980 1,118,130 881,263 1,490,628 1,399,661 -6%
Operating (Loss)(331,053) (363,843) 7,083 (485,047) (357,606)
NON-OPERATING REVENUES:
Investment Income 29,270 18,753 45,791 25,000 57,378 130%
Gas Well Royalties 330,308 355,644 165,771 474,130 444,800 -6%
Total Non-Operating Revenues 359,578 374,397 211,562 499,130 502,178 1%
NON-OPERATING EXPENDITURES:
Transfers Out - Capital - 168,773 225,000 225,000 225,000 0%
Total Non-Operating Expenses - 168,773 225,000 225,000 225,000 0%
Non-Operating Income (Loss)359,578 205,624 (13,438)274,130 277,178
Net Income (Loss)28,525$ (158,219)$ (6,355)$ (210,917)(80,428)
Ending Working Capital 2,260,504$ 2,668,447$
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.
22
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
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 7,429,750$ 9,358,293$ 8,335,204$ 12,476,060 12,476,060 0%
Street Cuts 258,073 267,786 200,265 357,000 357,000 0%
Investment Income 13,322 7,501 440 10,000 10,000 0%
Transfers In 773,871 838,714 775,936 1,118,135 1,118,135 0%
Miscellaneous 41 - 1,505 - -
Total Revenues 8,475,057 10,472,294 9,313,350 13,961,195 13,961,195 0%
EXPENDITURES:
Personal Service 2,207,288 2,580,333 2,493,245 3,439,984 3,439,984 0%
Materials and Supplies 93,571 65,373 64,788 87,150 87,150 0%
Maintenance and Repairs 6,195,241 4,262,707 5,194,393 6,620,524 6,620,524 0%
Insurance 32,267 38,774 38,770 51,693 51,693 0%
Miscellaneous 3,609 3,751 4,320 5,000 5,000 0%
Operations, Services 582,804 655,298 513,643 830,302 830,302 0%
Transfer Out 654,651 2,866,063 2,839,077 2,926,542 2,926,542 0%
Total Expenditures 9,769,431 10,472,299 11,148,236 13,961,195 13,961,195 0%
Net Income (Loss)(1,294,374)$ (5)$ (1,834,886)$ - -
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.
23
City of Denton
Grants
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
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$ 559,021$ 1,893,649$ 600,000$ -68%
US Dept of HUD -
HOME Investment Partnership Program 2,816,384 378,682 1,046,759 450,000 -57%
Community Development1 5,591,738 937,703 2,940,408 1,050,000 -64%
TxDot STEP Comprehensive Grant - 55,452 91,464 91,464 0%
2016 UASI - 130,000 130,000 130,000 0%
2017 UASI - 15,333 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 - 111,339 419,971 419,971 0%
Public Safety - 312,124 793,810 786,460 -1%
Airport Maintenance (RAMP) Grant - 22,425 50,000 50,000 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 14,203,683 10,017,435 33,197,821 18,000,000 -46%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 9,189,164 10,023,369 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) 138 669,086 18,267,303 1,300,000 -93%
TxDot-Hickory Creek FM2181-FM2499 2,294 1,516 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 20,733,831 95,139,146 26,982,000 -72%
Interlibrary Loan Program (ILL) - - 25,000 25,000 0%
TIFMAS Training Tuition Grant - 7,710 10,000 10,000 0%
Other - 7,710 35,000 35,000 0%
Total FY 2017-18 Budget 28,987,017 21,991,368 98,908,364 28,853,460 -71%
New Awards
Emergency Solutions Grant - 271,206 600,000 500,000 -17%
Community Development - 271,206 600,000 500,000 -17%
Federal Equitable Sharing - 23,420 23,420 23,420 0%
Chapter 59 Asset Forfeitures - 107,248 107,248 107,248 0%
U.S. Marshals Violent Offenders Task Force - 20,180 20,180 20,180 0%
PD-Law Enforcement Officer Standards &
Education - 12,467 12,467 12,467 0%
Sexual Assault Nurse Examiners (SANE)
Reimbursement - 31,596 31,596 31,596 0%
2017 SHSP Ballistic Blankets - 3,000 3,000 3,000 0%
2017 SHSP Night Vision - - 14,200 14,200 0%
2017 UASI Command Data - - 30,000 30,000 0%
Body Armor Grant Program - - 91,692 91,692 0%
2018 SHSP SWAT Equipment Enhancement - - 24,000 24,000 0%
Public Safety - 197,911 357,803 357,803 0%
24
City of Denton
Grants
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2018
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 1,603 1,988,195 400,000 -80%
TxDot-RTR-ITS COMM Trunk Line 253,372 40,934 1,318,228 1,000,000 -24%
TxDot-US 77 At Nicosia Street - 32,795 38,240 38,240 0%
TxDot-FM 2499 At State School Road - 21,597 21,597 21,597 0%
TxDot-FM 2499 At Unicorn Lake - 21,491 21,638 21,638 0%
Transportation1 265,177 118,420 3,387,898 1,481,475 -56%
TxDot NW Trail Extension Grant 1,086,685 212,273 212,273 212,273 0%
Parks and Recreations 1,086,685 212,273 212,273 212,273 0%
Texas Parks & Wildlife-CCNHC-Davis Trailhead &
Trail - 83,011 199,613 199,613 0%
Others - 83,011 199,613 199,613 0%
Total New Awards 1,351,862 882,821 4,757,587 2,751,164 -42%
TOTALS 30,338,879$ 22,874,189$ 103,665,951$ 31,604,624$ -70%
1 This grant amount will be spent over several years and the fiscal year 2017-18 projections are just estimated expenditure in the one year.
Remaining grant amounts will be spent in future fiscal year.
2 A portion of the grants presented cover multiple years.
25
Section 3
City of Denton
Quarterly Financial Report
June 2018
REVENUE & ECONOMIC
ANALYSIS
26
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.
27
National Economic Trends
Period Ending June 30, 2018
Gross Domestic Product (GDP)
The initial measure of seasonally-adjusted
second quarter GDP was at +4.1%, essentially
matching the Bloomberg median forecast, and
the strongest quarterly growth in four years
ago. But, the underlying numbers actually
indicate an even stronger economy and pave
the way for enhanced third quarter growth. In
particular, business inventories fell in Q2,
chipping a full percentage point off of GDP. If
U.S. businesses rebuild inventories this
quarter, there could be a significant addition in
Q3. Consumer spending was up +4.0% in Q2,
the best since 2014. Business spending rose
by +7.3% following an eye-popping +11.5%
first quarter advance. Businesses have the tax
incentive to continue expanding, while the
consumer may be challenged to keep up the
brisk pace without a significant wage boost.
Nonfarm Payrolls
U.S. businesses increased payrolls by +157k
in July. Prior month revisions added +59k.
The monthly average for the first seven
months of the year is now +215k; if this holds,
it would be the strongest job growth since
2015. The unemployment rate declined from
4.0% to 3.9% in July as the household survey
showed +105k Americans entered the
workforce during the month, while +389k
found jobs. Unemployment has returned to
within a tenth of a percentage point from the
four decade low reached in May.
The labor market is tight, but hourly earnings
rose just +0.3% in July, equaling forecasts,
while the June wage gain was revised lower.
On an annual basis, wages were unchanged at
+2.7%.
28
Inflation
Posting its highest reading since January,
headline PPI rose +0.5% in May, and +0.3%
in June, while the year-over-year (y-o-y)
jumped from +2.6% in April to +3.1% in
May and +3.4% in June. Core PPI, which
excludes food, energy and trade services, is
running at +2.7% y-o-y through June. The
Consumer Price Index is rising more
modestly with a gain of just +0.1% in June,
but the y-o-y pace has accelerated to +2.9%
from +2.1% when the year began. Core CPI
rose +0.2% in June, while the y-o-y pace has
bumped up to +2.3%. Core PCE finally
matched the Fed’s +2.0% target in May.
Tariffs are likely to have an inflationary
impact in the coming months and will make
the Fed’s job more difficult.
Retail Sales
Headline retail sales rose +0.5% in June,
matching forecasts, while the already solid
May number was revised upward from
+0.8% to +1.3%.
The retail sales control group, which feeds
into the GDP calculation, was unexpectedly
(and oddly) weaker than expected June,
rising by just 0.25%, but an upward revision
boosting the May control group data from
+0.8% to +1.3% indicated the overall three-
month period was quite strong.
For the second quarter, headline sales rose
+7.9%, compared to +1.8% in the first
quarter. Since consumer spending drives the
U.S. economy, healthy retail sales indicate
strong GDP growth in Q2.
29
Texas Home Sales
Texas home sales rose by +43.0% in the
second quarter and +2.5% on a year-
over-year basis. The average Texas
home price in June was $298.7k, a
+4.1% increase over the previous year,
and a new record high.
In Denton County, unit home sales rose
+43% during the spring quarter, and
+2.5% over the same period a year ago.
The average home price in June was
$366.5k, a +4.2% year-over-year
increase and the highest average
recorded in any single month. Total
Denton County listings in June were
3,810, approximately +14% higher than
a year ago. The available inventory at
quarter end was 3.0 months; a
substantial increase from 2.2 three
months earlier.
The paper was prepared by FirstSouthwest Asset Management, is intended for educational and informational purposes only and does not constitute legal or
investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was
obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish
standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of FirstSouthwest Asset
Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In addition, the views are subject
to change without notice. This paper represents historical information only and is not an indication of future performance.
30
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 9.2%increase from the prior quarter at the national level and
a 10.6% 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
3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
31
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 3rd Quarter of 2017-18 shows an increase of 2.5% over the prior quarter and an increase of 8.0% over the 3rd
Quarter of 2016-17. Staff has rated this indicator as Negative.
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control
price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,
readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing
business as a local government.
Source: American City and County Magazine
225.00
230.00
235.00
240.00
245.00
250.00
255.00
3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18
Municipal Cost Index
32
Hotel Occupancy Tax Analysis Outlook Positive
3rd Quarter FY 2017-18
Actual Y-T-D
Occupancy Tax Revenue:814,507$ 2,048,566$
FY 2017-18 Budget 894,978$ 2,262,645$
Over (Under) Budget (80,471)$ (214,079)$
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 3rd Quarter of FY 2018 was 8.99% less than budget and 1.15% less 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
$800,000
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
33
Sales and Use Tax Analysis Outlook Positive
3rd Quarter FY 2017-18
Actual Y-T-D
Revenue: Gross Sales Tax
Municipal Operations 463,010$ 1,362,509$
General Retail & Others 9,439,634 28,187,181
Comptroller Fees (185,035) (552,808)
Amount Retained (181,334) (541,753)
Total Revenue 9,536,275$ $28,455,129
Expenses: Economic Incentives
Denton Crossing1 137,821$ 430,690$
Unicorn Lake2 22,986 58,451
Rayzor Ranch3 327,263 956,367
Golden Triangle4 38,365 116,379
Total Expenses 526,435$ 1,561,887$
Net Total 9,009,840 26,893,242
FY 2017-18 Budget 8,367,183 24,812,698
Over(Under) Budget 642,657$ 2,080,544$
Sales Tax Budget:36,181,385$
Year End Projection:39,452,935
Variance to Original Budget:3,271,550$
Economic Development Expenditure Budget:2,373,819$
Year End Projection:2,060,599
Variance to Original Budget:(313,220)$
1. Incentive is 50% of general sales taxes. For the 2nd quarter sales tax equaled $275,642.
2. Incentive is 50% of general sales taxes. For the 2nd quarter sales tax equaled $45,972.
3. Incentive is 75% of general sales taxes. For the 2nd quarter sales tax equaled $436,351.
4. Incentive is 75% of general sales taxes. For the 2nd quarter sales tax equaled $51,153.
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 3rd quarter of FY 2018 compared to revenues
from the prior year 3rd quarter shows a 4.60% increase, and compared to the budget it is 6.49% above. Staff has rated
this indicator as Positive.
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Gross Sales Tax Collections (Millions)
FY 2013-14 Actual FY 2014-15 Actual FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Actual
34
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 2009 International Building
Code (IBC)and applicable City ordinances. The IBC states, "that no building shall be used or occupied,and no change
in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building
official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and
consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of
the local economy. Certificates of Occupancy increased 14.7%from the prior quarter and decreased 51.69%from
the 3rd Quarter of 2017. Staff has rated the outlook for this revenue indicator as Negative.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
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
2Q
'18
3Q
'18
Certificates of Occupancy
35
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 48.5%from the prior quarter and decreased 4.5%from the 3rd
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
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
2Q
'18
3Q
'18
Residential Permits
36
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 decreased 0.4%from the prior quarter and
increased 4.17% from the 3rd 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
2Q
'08
4Q
'08
2Q
'09
4Q
'09
2Q
'10
4Q
'10
2Q
'11
4Q
'11
2Q
'12
4Q
'12
2Q
'13
4Q
'13
2Q
'14
4Q
'14
2Q
'15
4Q
'15
2Q
'16
4Q
'16
2Q
'17
4Q
'17
2Q
'18
Texas Leading Indicators Index
37
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 3.1%for the 3rd Quarter.
The unemployment rates for most of the other reported sectors were either down slightly or flat from the prior
quarter.As a result of the downward trend since the high of the 2nd Quarter of 2012,staff has rated the outlook for
this revenue indicator as Positive.
Note:U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.
Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to
settle for a part-time schedule.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
3Q '12 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18
Unemployment Rate Index
Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States
38
Fountain Monolith by Jesus Moroles, November 2016
39
Section 4
City of Denton
Quarterly Financial Report
June 2018
INVESTMENT REPORT
40
3rd Fiscal Quarter 2018 - June 30, 2018 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max.Benchmark
Portfolio:Value Value Value Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 555,902,431$ 552,367,304$ 555,370,737$ (3,003,433)$ 291 550 1.58%1.75%
*Twelve month moving average of a one year
U.S. T-bill yield
% of Total
Par Market Book Unrealized Portfolio Policy
Securities By Investment Type:Value Value Value Gain/(Loss)1 WAM YTM (Book Value) Max.
U.S. Treasuries 27,000,000 26,827,579 26,910,229 (82,650) 196 1.23% 4.85% 100.00%
U.S. Federal Agencies 300,756,000 297,698,394 300,518,882 (2,820,488) 406 1.34% 54.11% 100.00%
Municipal Bonds 11,000,000 10,904,650 11,000,000 (95,350) 245 1.11% 1.98% 15.00%
Certificates of Deposit 102,000,000 102,000,000 102,000,000 - 282 1.57% 18.36% 35.00%
Commercial Paper 21,000,000 20,790,250 20,795,195 (4,945) 143 1.67% 3.74% 15.00%
Local Government Investment Pools 66,174,172 66,174,172 66,174,172 - 1 1.49% 11.92% 50.00%
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 25,000,000 - 1 1.55% 4.50% 15.00%
Demand Deposits 2,972,259 2,972,259 2,972,259 - 1 0.80% 0.54%-
Total Portfolio 555,902,431$ 552,367,304$ 555,370,737$ (3,003,433)$ 291 1.58% 100.00%-
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons:6/30/2018 3/31/2018 Difference 6/30/2017
Par Value 555,902,431$ 608,515,986$ (52,613,555)$ 777,853,000$
Market Value 552,367,304$ 605,052,760$ (52,685,456)$ 776,842,268$
Book Value 555,370,737$ 608,179,960$ (52,809,223)$ 777,932,815$
Unrealized Gain(Loss)(3,003,433)$ (3,127,200)$ 123,767$ (1,090,547)$
Weighted Average Maturity 291 309 (18) 359
Yield to Maturity 1.58%1.42%0.16%1.16%
Portfolio Composition:
U.S. Treasuries 4.85%2.79%2.06%6.96%
U.S. Federal Agencies 54.11%53.20%0.92%44.61%
Municipal Bonds 1.98%2.38%-0.41%4.11%
Certificates of Deposit 18.36%20.72%-2.36%18.74%
Commercial Paper 3.74%5.91%-2.16%8.97%
Local Government Investment Pools 11.92%9.59%2.32%16.39%
Insured Cash Sweep Savings Deposits 4.50%4.11%0.39%0.00%
Demand Deposits 0.54%1.30%-0.77%0.22%
Bank Collateral Review**:Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 35,852,843$ 2,972,259$ 1206.25%
LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC 57,890,000$ 45,000,000$ 128.64%
Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC 16,950,000$ 15,188,394$ 111.60%
**Does not include FDIC insurance
***Formerly, ViewPoint Bank
Depository Ledger Balance Review:Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 1,598,018$ 95,239,528$ 2,972,259$
Compliance Statement & Review:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
(221,950,569)$
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.
(68)
0.42%
-2.13%
(224,474,964)$
(222,562,078)$
(1,912,886)$
-2.10%
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).
Reviewer: Antonio Puente, Jr., CGFO
9.50%
-0.38%
0.32%
Pledge Required
-5.23%
> 102%
> 100%
> 100%
-4.48%
4.50%
ANTONIO PUENTE, JR. KEVIN ANN MULLEN
Director of Finance Treasury Manager
(93,865,287)$
Preparer: Kevin Ann Mullen, CPA
41
3rd Fiscal Quarter 2018 - June 30, 2018 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
6/30/2018 3/31/2018 Difference 6/30/2017 Difference
Par Value - U.S. Treasuries 27,000,000$ 17,000,000$ 10,000,000$ 54,000,000$ (27,000,000)$
Par Value - U.S. Federal Agencies 300,756,000 323,756,000 (23,000,000) 347,000,000 (46,244,000)
Par Value - Municipal Bonds 11,000,000 14,500,000 (3,500,000) 31,860,000 (20,860,000)
Certificates of Deposit 102,000,000 126,000,000 (24,000,000) 145,756,500 (43,756,500)
Par Value - Commercial Paper 21,000,000 36,000,000 (15,000,000) 70,000,000 (49,000,000)
Local Government Investment Pools 66,174,172 58,324,172 7,850,000 127,524,172 (61,350,000)
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
Demand Deposits 2,972,259 7,935,814 (4,963,555) 1,712,328 1,259,931
Total Par Value 555,902,431$ 608,515,986$ (52,613,555)$ 777,853,000$ (221,950,569)$
Market Value - U.S. Treasuries 26,827,579$ 16,849,721$ 9,977,858$ 54,066,642$ (27,239,063)$
Market Value - U.S. Federal Agencies 297,698,394 320,650,279 (22,951,885) 346,204,860 (48,506,466)
Market Value - Municipal Bonds 10,904,650 14,379,250 (3,474,600) 31,808,347 (20,903,697)
Certificates of Deposit 102,000,000 126,000,000 (24,000,000) 145,756,500 (43,756,500)
Market Value - Commercial Paper 20,790,250 35,913,524 (15,123,274) 69,769,419 (48,979,169)
Local Government Investment Pools 66,174,172 58,324,172 7,850,000 127,524,172 (61,350,000)
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
Demand Deposits 2,972,259 7,935,814 (4,963,555) 1,712,328 1,259,931
Total Market Value 552,367,304$ 605,052,760$ (52,685,456)$ 776,842,268$ (224,474,964)$
Book Value - U.S. Treasuries 26,910,229$ 16,958,860$ 9,951,369$ 54,135,449$ (27,225,220)$
Book Value - U.S. Federal Agencies 300,518,882 323,527,701 (23,008,819) 347,074,851 (46,555,969)
Book Value - Municipal Bonds 11,000,000 14,500,000 (3,500,000) 31,945,426 (20,945,426)
Certificates of Deposit 102,000,000 126,000,000 (24,000,000) 145,756,500 (43,756,500)
Book Value - Commercial Paper 20,795,195 35,933,413 (15,138,218) 69,784,089 (48,988,894)
Local Government Investment Pools 66,174,172 58,324,172 7,850,000 127,524,172 (61,350,000)
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
Demand Deposits 2,972,259 7,935,814 (4,963,555) 1,712,328 1,259,931
Total Book Value 555,370,737$ 608,179,960$ (52,809,223)$ 777,932,815$ (222,562,078)$
Accrued Interest 3,171,462$ 3,032,833$ 138,629$ 3,368,342$ (196,880)$
Cash Value -555,538,766$ 608,085,593$ (52,546,827)$ 780,210,610$ (224,671,844)$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)(3,003,433)$ (3,127,200)$ 123,767$ (1,090,547)$ (1,912,886)$
Change in Fair Value since 9/30/17 -(1,631,152)$ (1,919,786)$ 288,634$ (1,624,078)$ (7,074)$
(GASB 31)
Strategy Statement:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee
income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meetanticipated 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) attain the best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by
actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the
Federal Reserve Statistical Release H.15 for constant maturities.
42
3rd Fiscal Quarter 2018 - June 30, 2018 Page 3
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Security Type:6/30/2018 3/31/2018 6/30/2017
U.S. Treasuries - Coupon 26,910,229$ 16,958,860$ 54,135,449$
U.S. Federal Agencies - Coupon 279,762,927 302,771,196 326,075,506
U.S. Federal Agencies - Callable 20,755,955 20,756,505 20,999,345
Municipal Bonds - Coupon 11,000,000 14,500,000 31,945,426
Certificates of Deposit - CDARS 42,000,000 49,000,000 38,756,500
Certificates of Deposit - SLOC 60,000,000 77,000,000 107,000,000
Commercial Paper - Discount 20,795,195 35,933,413 69,784,089
Local Government Investment Pools 66,174,172 58,324,172 127,524,172
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 -
Demand Deposits 2,972,259 7,935,814 1,712,328
Total Book Value 555,370,737$ 608,179,960$ 777,932,815$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type:6/30/2018 3/31/2018 6/30/2017
U.S. Treasuries - Coupon 4.85%2.79%6.96%
U.S. Federal Agencies - Coupon 50.37%49.78%41.92%
U.S. Federal Agencies - Callable 3.74%3.41%2.70%
Municipal Bonds - Coupon 1.98%2.38%4.11%
Certificates of Deposit - CDARS 7.56%8.06%4.98%
Certificates of Deposit - SLOC 10.80%12.66%13.75%
Commercial Paper - Discount 3.74%5.92%8.97%
Local Government Investment Pools 11.92%9.59%16.39%
Insured Cash Sweep Savings Deposits 4.50%4.11%0.00%
Demand Deposits 0.54%1.30%0.22%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal
bonds rated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit
(maturing in less than three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or
better (maturing in less than 270 days); and local government pools & SEC registered government money market mutual funds (weighted average
maturity of less than 60 days).
U.S. Treasuries ‐
Coupon
4.85%
U.S. Federal Agencies ‐Coupon
50.37%
U.S. Federal Agencies ‐Callable
3.74%
Municipal Bonds ‐
Coupon
1.98%
Certificates of
Deposit ‐SLOC
10.80%
Certificates of
Deposit ‐CDARS
7.56%
Commercial Paper ‐
Discount
3.74%
Local Government Investment
Pools
11.92%
Insured Cash Sweep
Savings Deposits
4.50%
Demand Deposits
0.54%
Current
06/30/2018
43
3rd Fiscal Quarter 2018 - June 30, 2018 Page 4
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Issuer:6/30/2018 3/31/2018 6/30/2017
CDARS CDs 42,000,000$ 49,000,000$ 38,756,500$
LEGACYTEXAS BANK CDs*45,000,000 62,000,000 77,000,000
INDEPENDENT BANK CDs 15,000,000 15,000,000 30,000,000
U.S. TREASURY 26,910,229 16,958,860 54,135,449
FFCB 71,996,109 79,995,171 78,026,414
FHLB 115,963,972 121,008,039 145,072,491
FHLMC 42,928,631 47,921,604 43,052,167
FNMA 69,630,170 74,602,888 80,923,779
DALLAS, TX WTR & SWR REV BDS 10,000,000 10,000,000 10,000,000
TEXAS A&M UNIV REV BDS 1,000,000 4,500,000 9,500,000
LUBBOCK, TX GO REFUNDING BDS - - 3,302,629
UNIVERSITY OF HOUSTON, TX REV BDS - - 5,067,543
MCKINNEY, TX GENERAL OBG BONDS - - 1,184,434
TEXAS SCHOOL DIST GEN OBG BONDS - - 2,890,820
JP MORGAN SECURITIES LLC 10,854,083 10,984,992 14,893,352
TOYOTA MOTOR CREDIT CORP - 14,979,723 16,966,273
GE CAPITAL TREASURY LLC - - 17,977,050
NESTLE FINANCE INTL LTD - - 14,950,275
ING (U.S.) FUNDING LLC 4,996,125 9,968,697 -
AMERICAN HONDA FINANCE 4,997,139
NATIXIS NY BRANCH 4,944,988
TEXSTAR 66,174,172 58,324,172 127,524,172
INSURED CASH SWEEP SAVINGS 25,000,000 25,000,000 -
WELLS FARGO DEMAND DEPOSITS 2,972,258 7,935,814 1,712,328
Total Book Value 555,370,737$ 608,179,960$ 777,932,815$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Issuer:6/30/2018 3/31/2018 6/30/2017
CDARS CDs 7.56%8.06%4.98%
LEGACYTEXAS BANK CDs*8.10%10.19%9.90%
INDEPENDENT BANK CDs 2.70%2.47%3.86%
U.S. TREASURY 4.85%2.79%6.96%
FFCB 12.96%13.15%10.03%
FHLB 20.88%19.90%18.65%
FHLMC 7.73%7.88%5.53%
FNMA 12.54%12.27%10.40%
DALLAS, TX WTR & SWR REV BDS 1.80%1.64%1.29%
TEXAS A&M UNIV REV BDS 0.18%0.74%1.22%
GE CAPITAL TREASURY LLC --2.31%
LUBBOCK, TX GO REFUNDING BDS --0.43%
UNIVERSITY OF HOUSTON, TX REV BDS --0.65%
MCKINNEY, TX GENERAL OBG BONDS --0.15%
TEXAS SCHOOL DIST GEN OBG BONDS --0.37%
JP MORGAN SECURITIES LLC 1.95%1.81%1.92%
TOYOTA MOTOR CREDIT CORP -2.46%2.18%
NESTLE FINANCE INTL LTD --1.92%
ING (U.S.) FUNDING LLC 0.90%1.64%-
AMERICAN HONDA FINANCE 0.64%
NATIXIS NY BRANCH 0.89%--
TEXSTAR 11.92%9.59%16.39%
INSURED CASH SWEEP SAVINGS 4.50%4.11%-
WELLS FARGO DEMAND DEPOSITS 0.54%1.30%0.22%
Total 100.00%100.00%100.00%
*Formerly, ViewPoint Bank
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percentof 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 onU.S. Treasuries or FDIC insured products except as theypertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some investment types may be further limited.
CDARS CDs, 7.56%
LEGACYTEXAS BANK CDs, 8.10%
INDEPENDENT BANK CDs, 2.70%
U.S. TREASURY, 4.85%
FFCB, 12.96%
FHLB, 20.88%FHLMC, 7.73%
FNMA, 12.54%
TEXAS A&M UNIV REV BDS, 0.18%
DALLAS, TX WTR & SWR REV BDS, 1.80%
JP MORGAN SECURITIES LLC, 1.95%
ING (U.S.) FUNDING LLC, .9%
INSURED CASH SWEEP SAVINGS, 4.50%
NATIXIS NY BRANCH, 0.89%
TEXSTAR, 11.92%
WF DEMAND DEPOSITS, 0.54%
Current
6/30/2018
44
3rd Fiscal Quarter 2018 - June 30, 2018 Page 5
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:6/30/2018 3/31/2018 6/30/2017
00-03 Months 162,146,431$ 191,759,986$ 226,053,000$
03-06 Months 39,000,000 68,000,000 44,000,000
06-12 Months 147,000,000 109,000,000 174,800,000
12-24 Months 192,000,000 208,000,000 223,000,000
24 Months & Over 15,756,000 31,756,000 110,000,000
Total Par Value 555,902,431$ 608,515,986$ 777,853,000$
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:6/30/2018 3/31/2018 6/30/2017
00-03 Months 29.17%31.51%29.06%
03-06 Months 7.02%11.18%5.66%
06-12 Months 26.44%17.91%22.47%
12-24 Months 34.54%34.18%28.67%
24 Months & Over 2.83%5.22%14.14%
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
$850,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
45
3rd Fiscal Quarter 2018 - June 30, 2018 Page 6
ECONOMIC SUMMARY
Interest Rate History
Source: U.S. Federal Reserve Statistical
Release (H.15)
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
Market Sector:AvgAvgAvgAvgAvgAvgAvgAvgAvgAvgAvgAvg
Fed Funds (effective)0.16% 0.14% 0.09% 0.08% 0.09% 0.08% 0.10% 0.09%0.12% 0.11% 0.13% 0.14%
3-Month U.S. T-Bill 0.07% 0.09% 0.05% 0.02% 0.07% 0.05% 0.04% 0.02%0.03% 0.03% 0.02% 0.02%
2-Year U.S. T-Note 0.26% 0.26% 0.33% 0.40% 0.34% 0.40% 0.45% 0.57%0.64% 0.64% 0.69% 0.71%
Portfolio Benchmark*0.18% 0.18% 0.16% 0.15% 0.13% 0.13% 0.12% 0.12%0.12% 0.15% 0.18% 0.24%
Portfolio Yield 0.52% 0.50% 0.48% 0.49%0.50% 0.49% 0.49% 0.51% 0.55% 0.57% 0.57% 0.65%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
Market Sector:AvgAvgAvgAvgAvgAvgAvgAvgAvgAvgAvgAvg
Fed Funds (effective)0.24% 0.36% 0.38%0.40% 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90%
3-Month U.S. T-Bill 0.23% 0.30% 0.27%0.29% 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92%
2-Year U.S. T-Note 0.98% 0.88% 0.73%0.77% 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53%
Portfolio Benchmark*0.32% 0.41% 0.49%0.54% 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75%
Portfolio Yield 0.72% 0.79% 0.81% 0.90% 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58%
*Twelve month moving average of a one year
U.S. T-bill yield
Fiscal Year:
2017-2018
2016-2017
2015-2016
2014-2015
2013-2014
2012-2013
QUARTERLY COMMENTARY
June 30, 2018
Source: First Southwest Asset Management
Economic Summary & TexSTAR Monthly
Newsletter
1,175,753$
612,750$
2,763,136$
3,771,703$ 5,686,091$
2,743,856$ 1,771,205$
1,680,154$
1,703,496$
2,298,785$
2,276,341$
4,734,315$ 6,999,226$
3,961,971$
Oct - Dec Oct - Mar Oct - Jun Oct - Sep
Fiscal Year 2015-2016 Fiscal Year 2016-2017 Fiscal Year 2017-2018
The third quarter of FY18-19 was marked by rising interest rates. The Federal Reserve raised the Fed Fund rate by 25 basis
points on June 13, 2018. This brings the fed funds targeted range to 1.75 - 2.00%. Analysts are continuing to predict 2 more
rate hikes in 2018. At this time the yield curve shows 2-year yields at 2.53%, while the 10-year yield is 2.86%. This 33 basis
point spread is a big change from nine months ago at 79 basis points. Concerns of an inverted yield curve have risen as this
has historically been an indicator of a future economic downturn. Jerome Powell, the new chairman for the Federal Reserve,
announced that beginning in 2019 there will be press conferences after every policy meeting instead of quarterly
announcements. Markets reacted nervously to the escalation in the China-US trade dispute, when negotiations between
Washington and Beijing were largely unsuccessful. The 25% tariffs on $34 billion of Chinese imports announced by President
Trump are set to go into effect in early July 2018.
Fiscal Year to Date Earnings
3 Months 6 Months 9 Months 12 Months
849,368$
613,879$
568,825$
1,228,059$
1,121,491$
1,177,337$
2,695,211$
2,138,420$ -$
1,874,847$
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015
0.00%
1.00%
2.00%
3.00%
Dec-
12
Mar-
13
Jun-
13
Sep-
13
Dec-
13
Mar-
14
Jun-
14
Sep-
14
Dec-
14
Mar-
15
Jun-
15
Sep-
15
Dec-
15
Mar-
16
Jun-
16
Sep-
16
Dec-
16
Mar-
17
Jun-
17
Sep-
17
Dec-
17
Mar-
18
Jun-
18
Sep-
18
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
46
Days toMaturityPage 1Par ValueBook ValueMaturityDateStatedRateMarket ValueAugust 22, 2018Portfolio Details - InvestmentsAverageBalanceIssuerPortfolio ManagementCity of DentonYTM365 CUSIP Investment #PurchaseDateTreasury Securities - Coupon84U.S. TREASURY39157,000,000.00 7,001,013.84 11/15/20181.25001/27/2017 6,978,944.00 1.186912828M64176U.S. TREASURY394810,000,000.00 9,975,859.63 02/15/20190.75006/07/2017 9,909,380.00 1.258912828P53204U.S. TREASURY39785,000,000.00 4,966,022.82 03/15/20191.00004/23/2018 4,956,445.00 2.233912828P9599U.S. TREASURY39805,000,000.00 4,988,790.76 11/30/20181.25005/07/2018 4,982,810.00 2.087912828A3426,931,687.051.57326,827,579.0027,000,000.0026,927,435.90Subtotal and Average143Federal Agency Issues - Coupon22FFCB38964,000,000.00 3,999,928.86 09/14/20180.87506/27/2016 3,991,220.00 0.9063133EGFQ343FFCB38974,000,000.00 4,000,264.94 10/05/20180.96006/27/2016 3,988,408.00 0.9023133EFX69174FFCB393125,000,000.00 24,996,045.14 02/13/20191.20002/13/2017 24,843,275.00 1.2343133EG6Z3400FFCB39328,000,000.008,001,715.0109/27/20191.55002/16/20177,913,616.001.5303133EG2D6280FFCB39375,000,000.005,015,001.3405/30/20191.75002/22/20174,971,900.001.3523133EDPK2592FFCB39596,000,000.006,005,836.0004/06/20201.60007/25/20175,901,240.001.5383133EHEZ2624FFCB39765,000,000.004,977,972.5505/08/20202.15003/23/20184,961,735.002.4163133EJCA568FHLB39187,000,000.006,999,806.4410/30/20181.15001/30/20176,978,965.001.1653130AARE0449FHLB39337,000,000.006,986,234.9811/15/20191.37502/16/20176,895,826.001.5393130AA3R7477FHLB39345,000,000.005,049,865.2912/13/20192.37502/16/20174,990,450.001.5903130A0JR2544FHLB393920,000,000.0019,998,889.6202/18/20201.65003/08/201719,715,640.001.6543130AAXU7544FHLB394515,000,000.0014,993,656.1302/18/20201.40004/26/201714,727,330.001.4293130ABAA4544FHLB395115,000,000.0015,000,000.0002/18/20201.50006/29/201714,751,090.001.5003130ABM29568FHLB39588,000,000.008,042,153.5903/13/20201.87507/25/20177,910,008.001.528313378J77442FHLB39735,000,000.004,963,265.1611/08/20191.45001/25/20184,932,965.002.0723130AC2Q6197FHLB39755,000,000.004,982,393.4803/08/20191.50003/23/20184,974,740.002.1603133782M2537FHLB397910,000,000.009,946,434.0702/11/20202.12504/23/20189,938,920.002.5003130ADN32477FHLB39844,000,000.003,999,354.0712/13/20192.37505/30/20183,993,796.002.3873130AEDY3644FHLB39855,000,000.005,011,364.5505/28/20202.62505/30/20185,001,535.002.4923130AECJ726FHLMC39258,000,000.008,000,682.5909/18/20181.30002/02/20177,987,296.001.1753134G7TZ4235FHLMC39355,000,000.004,994,207.5004/15/20191.12502/22/20174,953,905.001.3083137EADZ9189FHLMC39385,000,000.005,000,000.0002/28/20191.37502/28/20174,970,725.001.3753134GA6H2617FHLMC39605,000,000.004,986,295.5805/01/20201.37507/25/20174,897,095.001.5413137EADR7337FNMA39035,000,000.005,000,000.0007/26/20191.00007/26/20164,924,820.001.0003136G3XJ9187FNMA390410,000,000.0010,012,360.7002/26/20191.00007/07/20169,917,000.000.7543135G0J53188FNMA39093,000,000.003,010,652.3102/27/20191.70008/30/20162,987,991.000.9953136FTS67187FNMA391010,000,000.0010,001,245.8702/26/20191.00008/30/20169,917,000.000.9753135G0J5326FNMA39262,000,000.002,000,994.0309/18/20181.87502/02/20171,999,618.001.1503135G0YM9344FNMA393010,000,000.009,956,240.9408/02/20190.87502/08/20179,833,790.001.3493135G0N33554FNMA39365,000,000.005,000,000.0002/28/20201.70002/28/20174,932,355.001.7003136G4MA8554FNMA39425,000,000.004,993,064.1102/28/20201.50003/29/20174,915,500.001.5943135G0T29Portfolio CITYAPRun Date: 08/22/2018 - 13:27PM (PRF_PM2) 7.3.0Report Ver. 7.3.547
Days toMaturityPage 2Par ValueBook ValueMaturityDateStatedRateMarket ValueAugust 22, 2018Portfolio Details - InvestmentsAverageBalanceIssuerPortfolio ManagementCity of DentonYTM365 CUSIP Investment #PurchaseDateFederal Agency Issues - Coupon370FNMA39505,000,000.00 4,978,394.21 08/28/20191.00006/14/2017 4,918,225.00 1.4343135G0P49427FNMA397110,000,000.00 9,886,473.37 10/24/20191.00001/08/2018 9,809,630.00 1.9933135G0R39250,790,792.431.505248,347,609.00251,000,000.00261,695,158.22Subtotal and Average374Federal Agency Issues - Callable294FFCB38955,000,000.00 4,999,729.23 06/13/20191.18006/22/2016 4,945,195.00 1.1873133EGEF8676FHLMC39536,000,000.00 6,000,000.00 06/29/20201.62506/29/2017 5,886,138.00 1.6253134GBVD1736FHLMC39654,950,000.00 4,950,000.00 08/28/20201.62508/29/2017 4,832,388.00 1.6253134GBD82718FNMA39644,806,000.00 4,806,000.00 08/10/20201.70008/29/2017 4,721,126.04 1.6823136G4NZ220,755,729.231.53320,384,847.0420,756,000.0020,755,730.95Subtotal and Average608Municipal Bonds - Coupon404DALLAS, TX WTR & SWR REV BDS38994,000,000.00 4,000,000.00 10/01/20191.21707/07/2016 3,934,760.00 1.21723542JBE439DALLAS, TX WTR & SWR REV BDS39006,000,000.00 6,000,000.00 10/01/20180.98507/07/2016 5,982,180.00 0.98523542JBD6265TX A & M UNIV REV BD39021,000,000.00 1,000,000.00 05/15/20191.00907/20/2016 987,710.00 1.00988213AFU411,000,000.001.07210,904,650.0011,000,000.0011,000,000.00Subtotal and Average192CDs - CDARS168CD - CDARS39297,000,000.00 7,000,000.00 02/07/20191.67702/09/2017 7,000,000.00 1.677SYS3929203CD - CDARS394010,000,000.00 10,000,000.00 03/14/20191.62603/16/2017 10,000,000.00 1.626SYS3940329CD - CDARS395510,000,000.00 10,000,000.00 07/18/20191.69807/20/2017 10,000,000.00 1.698SYS3955350CD - CDARS396110,000,000.00 10,000,000.00 08/08/20191.69808/10/2017 10,000,000.00 1.698SYS3961385CD - CDARS39665,000,000.00 5,000,000.00 09/12/20191.52309/14/2017 5,000,000.00 1.523SYS396642,000,000.001.65742,000,000.0042,000,000.0042,000,000.00Subtotal and Average284CDs - SLOC231CD - INDEPENDENT BANK394410,000,000.00 10,000,000.00 04/11/20191.62304/13/2017 10,000,000.00 1.623SYS3944532CD - INDEPENDENT BANK39745,000,000.00 5,000,000.00 02/06/20202.29502/08/2018 5,000,000.00 2.295SYS3974259CD - LEGACYTEXAS BANK394610,000,000.00 10,000,000.00 05/09/20191.67705/11/2017 10,000,000.00 1.677SYS3946294CD - LEGACYTEXAS BANK394915,000,000.00 15,000,000.00 06/13/20191.67606/15/2017 15,000,000.00 1.676SYS394940,000,000.001.74040,000,000.0040,000,000.0043,636,363.64Subtotal and Average299Commercial Paper Disc. - Amortizing88JP MORGAN SECURITIES LLC39775,000,000.00 4,969,811.11 11/19/20182.47004/23/2018 4,952,055.00 2.57946640QLK5183JP MORGAN SECURITIES LLC39836,000,000.00 5,924,360.00 02/22/20192.48005/30/2018 5,898,690.00 2.59746640QPN5110NATIXIS NY BRANCH39825,000,000.00 4,962,875.00 12/11/20182.43005/30/2018 4,944,200.00 2.54963873KMB015,857,046.112.57615,794,945.0016,000,000.0015,845,560.28Subtotal and Average130Portfolio CITYAPRun Date: 08/22/2018 - 13:27PM (PRF_PM2) 7.3.048
Days toMaturityPage 3Par ValueBook ValueMaturityDateStatedRateMarket ValueAugust 22, 2018Portfolio Details - InvestmentsAverageBalanceIssuerPortfolio ManagementCity of DentonYTM365 CUSIP Investment #PurchaseDateLocal Govt Investment Pools1LOCAL GOVT INV POOL - TEXSTAR364166,174,171.85 66,174,171.85 1.77666,174,171.85 1.776SYS364166,174,171.851.77666,174,171.8566,174,171.8566,174,171.85Subtotal and Average1Insured Cash Sweep Savings Deposits1INSURED CASH SWEEP SAVINGS396225,000,000.00 25,000,000.00 1.95025,000,000.00 1.950SYS396225,000,000.001.95025,000,000.0025,000,000.0025,000,000.00Subtotal and Average1Demand Deposits1DEMAND DEPOSITS - WELLS FARGO37062,972,258.57 2,972,258.57 0.8002,972,258.57 0.800SYS37062,972,258.570.8002,972,258.572,972,258.572,972,258.57Subtotal and Average11.619516,006,679.41 501,902,430.42276498,406,060.46 501,481,685.24Total and AveragePortfolio CITYAPRun Date: 08/22/2018 - 13:27PM (PRF_PM2) 7.3.049
Days toMaturityPage 4Par ValueBook ValueStatedRateMarket ValueAugust 22, 2018Portfolio Details - CashAverageBalanceIssuerPortfolio ManagementCity of DentonYTM365 CUSIP Investment #PurchaseDate0.001.619516,006,679.41 501,902,430.422760Average Balance498,406,060.46 501,481,685.24Total Cash and InvestmentsPortfolio CITYAPRun Date: 08/22/2018 - 13:27PM (PRF_PM2) 7.3.050
Little d Bicycle Racks Located in Downtown Denton
51
Section 5
City of Denton
Quarterly Financial Report
June 2018
PERFORMANCE REPORT
52
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.
53
STRATEGIC PLAN 2017-18
The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization.
While every department has some level of responsibility for each KFA, the matrix is intended to only
highlight the primary departments responsible for each KFA.
SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5
UTILITIES
Electric
Water
Wastewater
Solid Waste
INTERNAL SERVICES
Technology Services
Materials Management
Fleet
Risk
NEIGHBORHOOD SERVICES
Building Inspection
Community Improvement Services
Libraries
Parks and Recreation
Planning
Gas Well Operations
Community Development
PUBLIC SAFETY
Animal Services
Fire
Police
Municipal Court
TRANSPORTATION
Airport
Streets
Traffic/Transportation
ADMINISTRATIVE SERVICES
City Manager’s Office
Economic Development
Facilities Management
Finance
Human Resources
Internal Audit
Legal
Public Communications
Key Focus Area 1: Organizational Excellence
Key Focus Area 2: Public Infrastructure
Key Focus Area 3: Economic Development
Key Focus Area 4: Safe, Liveable and Family-Friendly Community
Key Focus Area 5: Sustainable & Environmental Stewardship
54
STRATEGIC PLAN
PERFORMANCE REPORT 20 17-18
City 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
55
STRATEGIC PLAN PERFORMANCE DASHBOARD 2017‐18KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN PERFORMANCE MEASURES TARGET 3RD QTRPERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS85% 93.8%PERCENTAGE OF BILLING ACURACY99% 99.1%PERCENTAGE OF PAYMENTS PROCESSED VIA ONLINE SELF‐SERVICE55% 62.8%PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION65% 60%NUMBER OF FOLLOWERS ACROSS ALL CITY SOCIAL MEDIA SITES165,000 202,485PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE100% 101.1%PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED EXPENDITURES<100% 96.0%ANNUAL RATE OF INVESTMENT RETURN1.25% 1.58%ENGINEERINGPERCENTAGE OF BOND FUNDED PROJECTS COMPLETED85% 78%LANE MILES OF ASPHALT ROADWAY RECONSTRUCTED12 9.81LANE MILES OF ASPHALT ROADWAY OVERLAID15 10.23LANE MILES OF ASPHALT ROADWAY MICRO‐SEALED450MILES OF SIDEWALK RECONSTRUCTED23.07AIRPORTNUMBER OF ACRES OF AIRPORT LAND NEWLY LEASED70NUMBER OF RFP'S RETURUNED IN TARGET INDUSTRY SECTORS2014NUMBER OF WORKFORCE DEVELOPMENT ACTIVITIES OR GRANTS FACILITATED1233NUMBER OF DOWNTOWN PROPERTIES REDEVELOPED68NUMBER OF BUSINESS RETENTION VISITS IN THE DOWNTOWN AREA2413NUMBER OF BUSINESS RETENTION VISITS IN AREAS OTHER THAN DOWNTOWN4822POLICEPERCENT 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% 44.8%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 DEPARTMENT810NUMBER OF INDIVIDUALS REACHED BY THE DENTON PUBLIC LIBRARY "DPL2GO" OUTREACH SERVICE5,000 15,961NUMBER OF "DPL2GO" OUTREACH EVENTS60 130SOLID WASTEPOUNDS OF WASTE DISPOSED PER CAPITA1,900 1,317MILES OF ON‐STREET BIKE INFRASTRUCTURE, SUCH AS BIKE LANES AND SHARROWS, ADDED DURING FISCAL YEAR 2017‐1875.8NUMBER OF TRANSPORTATION SAFETY EDUCATIONAL OPPORTUNITIES AND EVENTS116NUMBER OF SUSTAINABILITY RELATED WORKSHOPS HOSTED BY THE CITY3549PERCENT OF GREENSENSE REBATE FUNDING EXPENDED100% 44%ENGINEERINGENVIRONMENTAL SERVICESKFA 5: SUSTAINABLE AND EVIRONMENTAL STEWARDSHIPFINANCESTREETSKFA 4: SAFE, LIVEABLE, AND FAMILY‐FRIENDLY COMMUNITYFIRELIBRARYKFA 3: ECONOMIC DEVELOPMENTKFA 1: ORGANIZATIONAL EXCELLENCECUSTOMER SERVICEPUBLIC COMMUNICATIONSKFA 2: PUBLIC INFRASTRUCTURE ECONOMIC DEVELOPMENT56
STRATEGIC PLAN
WORK PLAN REPORT 20 17-18
City of Denton, Texas
57
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 3RD QTR
Implement online payment and citizen service request systems Dec 2017 The application launched June 18, 2018 with a planned 90-day
soft launch.
Launch a bi-monthly newsletter for citizens and stakeholders Dec 2017
The City has continued production of the bimonthly Resident
Update. Past issues can be found at
https://www.cityofdenton.com/en-us/stay-updated under
Important Documents.
Expand open data initiatives and improve citizen access to information Sep 2018 There are currently 149 total datasets available at
http://data.cityofdenton.com.
Hold regular performance management meetings with departments and
executive team Sep 2018
Developing an alternative strategy to identify performance
measures that will provide greater clarity into the City's various
operations and be a more effective tool for management staff.
Offer key indicators of the City’s performance through an online
dashboard Dec 2017
A dashboard of the City's performance related to strategic plan
measures is located at
http://data.cityofdenton.com/base/strategic-performance-
measures
Evaluate purchasing and contract management policies and procedures Jun 2018 A contract management software vendor has been selected and
the software is currently being tested.
Complete 80% of construction on the new West Parallel Runway Sep 2018 Environmental Assessment approved. TxDOT bidding
construction phase.
Complete the Airport Business Plan Update Sep 2018 Airport Rates and Fees Schedule approved. Remaining
documents to begin in Q4.
Traffic Engage a consultant to assist with review of railroad crossings in the city,
as well as possible Quite Zones Sep 2018
UPRR is still working on developing Plans, Specifications, and
Estimates (design phase) for the Quite Zone (QZ) improvements
at four crossings in the Downtown Area. Staff is currently
working on engaging the services of a consultant to begin the
QZ process on the northern segment.
Complete 85% of scheduled street improvement projects for Fiscal Year
2017-18 Sep 2018 Completed *78% of planned projects have been completed. *
Cumulative Total.
Complete the 2012 and 2014 bond programs for street improvements Sep 2018
During the third quarter the Street Department completed 19
bond segments. The total for this fiscal year is 36 bond
segments and 16 non-bond funded segments.
Econ Development Actively recruit prospects from target industries, as identified by the
Economic Development Partnership Board Sep 2018
Economic Development returned 2 request for proposal
responses in Q3, which brings the total to 13, or 65% of the
FY17-18 target.
The Department continues to improve the development review
process. Staff has begun reviewing applications and checklists
and have made revisions to improve clarity and consistency.
KFA 2: PUBLIC
INFRASTRUCTURE
Implement recommendations to improve the development review and
building inspections processes Dec 2017
City Manager Office
KFA 1:
ORGANIZATIONAL
EXCELLENCE
Development
Services
KFA 3: ECONOMIC
DEVELOPMENT
Airport
Capital Projects
58
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 3RD QTR
Complete the Denton Code 2030 Update June 2018
During the third Quarter Development Services continues to
solicit input on the Denton Development Code Update Public
Draft and Draft Zoning Map by attending and having a table at
scheduled events, such as the Community Market and
presenting at special group meetings, such as the AIA Dallas
Codes & Standards Committee and Kiwanis meetings. Staff also
continues to meet and present to the Development Code
Review Committee (DCRC), seeking input and their direction on
policy related matters.
Complete updates to building standards and design policies under the
City’s Site Design Criteria Manual and related documents June 2018 Receiving public comments and still on schedule for September
adoption
Complete remodel of the Public Safety Communications Center Sep 2018
The remodel is pending a proposal from Brinkley Sargent
Wigintion Architects. They will perform a 5-10 year concept to
improve the Police portion of City Hall East and outline
recommendations regarding the best utilitzation of the space.
The scope of the project includes the Police operations and
Public Safety Communications Center (excluding the jail).
Purchase and implement a new Computer Aided Dispatch (CAD) system
to upgrade technology and improve public safety response, data and
records
June 2018
Police, Fire and Technology Services are currently meeting to
score the proposals. Vendor demos are scheduled for
September.
Implement an Automatic Fire Station Alerting System Sep 2018
Station Alerting is a multi-year strategy with US Digital Designs.
Equipment has been installed at Stations: 1,4,5,6,and 8. Funding
for Station 7 will be a supplemental funding request for the FY
18-19 Budget.
Add on Fire Medic unit in the Northeast Denton area June 2018 The Medic unit at Station 4 is in service.
Complete construction of Fire Station #4
March 2018
The construction was completed in June 2018. The station
dedication was held June 22, 2018 with great community
turnout.
Use GIS mapping to determine population distribution in relation to City
recreational amenities Sep 2018 Staff is working with GIS to provide maps.
Implement recommendations from Denton Parks playground
replacement plan
Sep 2018
Purchase was approved by Council on 7/17/18. Estimated
completion of Milam, Denia and Fred Moore playgrounds is
October 2018.
Parks
KFA 4: SAFE, LIVEABLE,
AND FAMILY-FRIENDLY
COMMUNITY
Public Safety
Fire
Development
Services
KFA 3: ECONOMIC
DEVELOPMENT
59
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 3RD QTR
Community
Development
Continue partnership with the Denton County Homeless Leadership
team to collect and analyze data on housing and service needs Sep 2018
In partnership with the Denton County Homeless Leadership
Team (HLT) , the Mayor, Council Member K. Briggs, and CD staff
contributed a total of 17 hours at HLT meetings and planning
sessions. City Staff contributed a minimum of 91 additional
hours to support the HLT through the HLT Ad-Hoc, Housing, and
Data Workgroups in meetings and in activities to collect and
analyze data on housing and service needs.
Develop a comprehensive public education program to educate
residents on code requirements
Sep 2018
During the third Quarter the Development Services continues to
receive feedback on the Denton Development Code Update
Public Draft and Draft Zoning Map. The Department continues
to develop a comprehensive public education program.
Engage homeowner's associations and neighborhod groups to improve
neighborhoods through code compliance Sep 2018
During the third Quarter the Department continues to attend
special events and neighborhood meetings, receiving feedback
on the DDC Update and Draft Zoning Map and promoting the
Neighborhood grants.
Electric Complete construction of the Denton Engergy Center Sep 2018
At the end of the third quarter, the Denton Energy Center (DEC)
construction was substantially complete, performance testing
of all engines and control systems was winding down. Plant
TCEQ emission testing was performed and has since been
confirmed that all emission quantity values came in much lower
(better) than the plant's approved TCEQ permitted levels.
Approximately 89% of originally budgeted project funds have
been expended. Commercial Plant Operation is still on target
for July 2018 pending ERCOT approval. All of the plant systems
are fully commissioned, and the plant has successfully been
delivering electricity into the interconnected State of Texas
ERCOT Electrical Transmission Grid during peak times as part of
the commissioning process.
Solid Waste Complete construction of Cell 3 to expand capacity at the landfill Sep 2018
The landfill cell construction was completed in Q2, and waste
disposal activities have commenced in the new cell. The project
is complete.
Environmental
Services Engage the community and update the City's 2012 Sustainability Plan March 2018
Draft goals and KPIs presented to Committee on the
Environment. Plan is being update and future community
meeting is planned for next quarter.
Development
Services
KFA 5: SUSTAINABLE
AND EVIRONMENTAL
STEWARDSHIP
KFA 4: SAFE, LIVEABLE,
AND FAMILY-FRIENDLY
COMMUNITY
KFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITY
60
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANS TARGET
DATE 3RD QTR
Electric Review the City's renewable energy portfolio and present options to
increase renewable energy Dec 2017
DME’s progress towards contracting 100% renewable energy by
2020 has continued through Q3 with the approval and
execution of an additional renewable resource contract and
participation in solicitations for further renewable supply offers.
DME anticipates that more supply contracts will be ready for
approval by City Council and executed over the next several
months, to ensure that the 2020 objective will be reached. DME
continues to assess the market place and technologies for
opportunities to secure renewable resources at price levels and
with terms that will be incrementally valuable to the rate payers
and citizens of Denton.
KFA 5: SUSTAINABLE
AND EVIRONMENTAL
STEWARDSHIP
61
9/11 Firefighter’s Memorial Bell Tower at Central Fire Station
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