2021-009 Q4 Quarterly Financial ReportDate: January 15, 2021 Report No. 2021-009
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2020.
BACKGROUND: Attached for your review is the Quarterly Financial Report for the period ending September 30, 2020. If you have any questions or need additional information, please let me know.
STAFF CONTACT:
Cassey Ogden, Finance Director
(940) 349-7195
cassandra.ogden@cityofdenton.com
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance Department. The Quarterly Financial Report is intended to provide our users (internal and external) with information regarding the City’s financial position and economic activity. This report includes information for the quarter ending September 30, 2020.
This report is presented in four sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures are also included to highlight any significant changes or fluctuations. 2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides 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 section provides a summary of the City’s investment portfolio, interest earnings and a brief
market outlook.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Cassandra Ogden Director of Finance
215 East McKinney Street
Denton, TX 76201
940-349-7195
Section 1
City of Denton
Quarterly Financial Report
September 2020
Executive Dashboards
Note: All figures presented are in millions of dollars.
FY 2019-20 FY 2019-20
ANNUAL PRELIMINARY FY 2019-20
DESCRIPTION BUDGET 1 ACTUALS VARIANCE
Beginning Fund Balance
as of 09/30/19 30.13$ 30.74$ RESOURCES:
Ad Valorem Taxes 48.63 48.63 0% Sales Tax 39.28 39.34 0% Franchise Fees 4.60 4.60 0% Other Taxes 0.50 0.30 -40% Service Fees 8.17 6.85 -16% Fines and Fees 3.58 2.28 -36% Licenses and Permits 6.63 5.22 -21% Miscellaneous Revenue 3.31 2.29 -31% Transfers In 21.64 27.35 26%
Total Revenues 136.34 136.86 0%
Total Resources 166.47 167.60
EXPENDITURES:
Personal Service 93.24 92.85 0% Material and Supplies 3.25 2.47 -24% Maintenance and Repairs 1.67 1.32 -21% Insurance 1.57 1.57 0% Miscellaneous 1.50 1.10 -27% Operations 16.98 15.98 -6% Transfers Out 17.73 18.27 3% Fixed Assets 0.56 0.44 -21%
Total Expenditures 136.50 134.00 -2%
Net Income (Loss)(0.16) 2.86
Ending Fund Balance 29.97$ 33.60$
City of Denton, Texas
General Fund Executive Dashboard
$-
$20
$40
$60
$80
$100
$120
$140
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
Key Trends
➢Service Fees revenues are $1.32M less than budgeted mainly due to the Aquatics Center closure during the
summer.
➢Fines and Fees revenues are $1.30M less than budgeted mainly due to lower Municipal Court fines and fees.
➢Licenses and Permits revenues are $1.41M less than budgeted mainly due to lower Building Permits.
➢Transfers In revenues are $5.71M more than budgeted mainly due to Public Safety payroll reimbursed by the
Coronavirus Relief Fund.
➢Operations expenditures are $1.00M less than expected mainly due to 380 Agreement tax rebates reductions
due to COVID-19 impact. $-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Sales Tax Monthly Average by Quarter
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was
estimated in the FY 2019-20 budget process.
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardFY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTION BUDGET ACTUALS VARIANCEBeginning Working Capital and Reserves as of 9/30/19 55.64$ 77.92$ RESOURCES: Rate Revenues 146.49 145.21 0% Transmission Revenue 46.70 48.49 4% Other Revenues 3.98 9.73 145% DEC Revenues 25.07 12.76 -49%Total Revenues 222.24 216.19 -3%Total Resources 277.88 294.11 EXPENDITURES: Purchased Power 74.30 60.16 -19% DEC Fuel 12.48 3.60 -71% Transmission of Power 18.62 16.77 -10% Personnel Service 22.75 19.66 -14% Operation and Maintenance 31.67 27.93 -12% Debt Service 54.73 54.57 0% Transfers Out 15.85 14.98 -5% Capital Outlay 1.83 5.99 227%Total Expenditures 232.23 203.66 -12%Net Income (Loss) (9.99) 12.53 Ending Working Capital and Reserves 45.65$ 90.45$ $0$50$100$150$200$250Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsRevenues are 3% lower than budgeted. Transmission revenue is $1.8 Million higher than budgeted while DEC Revenue is $12.3 Million less than budget as a result of DEC running fewer hours due to cooler weather in the summer months. Other Revenues are 145% higher than budget as a result of $5.6 Million in TMPA Transmission revenue.Purchased Power expenditures are $14.1 Million less than budget and DEC Fuel is $8.9 Million less than budget as a result of cooler weather in the summer months. Transmission of Power is $1.8 Million less than budget due to filings by other electric utilities.Personnel costs are $3.1 Million less than budget as a result of eliminating positions.Operation and Maintenance costs are $3.7 Million less budget as a result of conservative measures taken to lessen the potential financial impact of COVID‐19. This more than offset the increased ROI rate from 3.5% to 6%, which resulted in payments $1.1 Million higher than budget. The Ending Working Capital and Reserves is $44.8 Million higher than budget as a result of lower Purchased Power costs, lower DEC Fuel cost, reduced operational costs, and receiving $5.6 Million in unanticipated revenue from TMPA.01002003004005006002014 – 2020 Historical Quarterly GWH Sales1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019‐20 budget process.
Note: All figures presented are in millions of dollars.FY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/19223.54$ 25.46$ RESOURCES: Water Sales 39.35 39.08 -1% Other Water Revenues 1.16 1.51 30% Transfers In 0.95 1.15 21% Impact Fee Revenue 6.61 6.61 0%Total Re ve n u e s48.07 48.35 1%Total Resources71.61 73.81 EXPENDITURES: Personal Service8.90 8.14 -9% Operations, Services10.82 9.78 -10% Capital Outlay13.69 13.84 1% Debt Service12.88 12.88 0% Transfers Out4.77 4.90 3%Total Expenditures51.06 49.54 -3%Net Income (Loss)(2.99) (1.19) Ending Working Capital and Reserves 20.55$ 24.27$ City of Denton, Texas Water Fund Executive DashboardKey TrendsOther Water Revenues are favorable to budget due to increases in tapping fee and rawwater resale revenues. Transfers in are higher than budget due to a larger administrative transfer fromElectric.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019‐20 budget process.2The Beginning Working Capital balance excludes $13.05M of Impact Fee Reserves and $0.75 million for Development Plan Line Reserves. $‐ $10 $20 $30 $40 $50 $60Revenue & Expenses (in Millions)YTD RevenueYTD Expenses05001,0001,5002,0002,5002014‐2020 Historical Quarterly Gallons Sold (in Millions)
FY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/19216.19$ 16.93$ RESOURCES: Wastewater Fees 25.08 24.03 -4% Other Wastewater Revenue1.81 2.14 18% Drainage Fees4.96 5.09 3% Transfer In0.59 0.59 0% Impact Fee Revenue4.27 4.27 0%Total Revenues36.71 36.12 -2%Total Resources52.90 53.05 EXPENDITURES: Personal Service 9.35 8.60 -8% Operations, Services 10.22 7.91 -23% Capital Outlay 6.81 8.04 18% Debt Service 7.49 7.48 0% Transfer Out 4.45 4.87 9%Total Expenditures38.32 36.90 -4%Net Income (Loss)(1.61) (0.78) Ending Working Capital and Reserves 14.58$ 16.15$ Note: All figures presented are in millions of dollars.City of Denton, Texas Wastewater1Fund Executive DashboardKey TrendsOther Wastewater Revenues are favorable to budget due to increases in tipping feeand compost revenues. Operations, Services are favorable to budget due to reductions in materials,supplies, and maintenance and repair expenditures.1Includes Drainage.2Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019‐20 budget process.3The Beginning Working Capital balance excludes $6.77 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.54 million for Development Plan Line Reserves. $‐ $5 $10 $15 $20 $25 $30 $35 $40Revenue & Expenses (in Millions)YTD RevenueYTD Expenses02004006008001,0001,2001,4002014‐2020 Historical Quarterly Gallons Billed (in Millions)
FY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTIONBUDGET ACTUALS VARIANCEREVENUES: Residential Drainage Fees1.90$ 1.95$ 3% Nonresidential Drainage Fees 3.06 3.14 3% Wastewater Resources0.04 - -100% General Fund Transfer0.35 0.35 0%Total Revenues5.35 5.44 2%EXPENDITURES: Personal Service2.31 2.04 -12% Operations, Services0.94 0.68 -28% Capital Outlay1.14 1.62 42% Debt Service0.48 0.47 -2% Transfer Out0.48 0.63 31%Total Expe n di tu re s5.35 5.44 2%Net Income (Loss)-$ -$ Note: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive DashboardKey TrendsOperations, Services expenditures are favorable to budget due to lower than expected materials & supplies and outside services costs.Capital Outlay expenses are over budget due to year‐end expendituretrue‐ups and additional funding provided for the channel rehabilitation drainage project. $‐ $1.0 $2.0 $3.0 $4.0 $5.0 $6.0Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/19210.36$ 9.21$ RESOURCES: Collection & Disposal27.08 28.51 5% Recycling7.04 6.74 -4% Other Revenue1.27 1.63 28%Total Revenues35.39 36.88 4%Total Resources45.75 46.09 EXPENDITURES: Personal Service11.10 10.44 -6% Operations, Services9.83 8.18 -17% Capital Outlay3.81 4.41 16% Debt Service8.45 8.45 0% Landfill Closure0.61 - -100% Transfer Out4.65 4.37 -6%Total Expenditures38.45 35.85 -7%Net Income (Loss)(3.06) 1.03 Ending Working Capital and Reserves7.30$ 10.24$ 01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0002019Qtr 12019Qtr 22019Qtr 32019Qtr 42020Qtr 12020Qtr 22020Qtr 32020Qtr 4Refuse TonnageRecycling and ReuseTonnageResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsCollection & Disposal was more than expected because of an increase in Landfill Gate receipts. The increase in Landfill gate receipts was driven by an increase in wholesale and residential tons. Other revenue increased due to a sale of assets throughout the year.The contribution to the Landfill Closure Fund was suspended this fiscal year until the landfill expansion is finalized.05,00010,00015,00020,00025,00030,0002019Qtr 12019Qtr 22019Qtr 32019Qtr 42020Qtr 12020Qtr 22020Qtr 32020Qtr 4Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per WeekCommercial RefuseCommercial Recycling1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2019‐20 budget process.2The Beginning Working Capital and Reserves excludes $11.06 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas Airport Fund Executive DashboardKey TrendsBoth revenues and expenses were less than budgeted due to COVID‐19.$0.0$1.0$2.0$3.0$4.0$5.02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing by fiscal year)Note: All financial amounts presented are in millions of dollars.FY 2019-20 FY 2019-20ANNUAL PRELIMINARY FY 2019-20DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/18 2.81$ 2.88$ RESOURCES: Airport Ground Leases 0.77 0.79 3% FBO Commissions 0.21 0.18 -14% Fuel Flowage Fees 0.13 0.12 -8%Total Operating Revenues 1.11 1.09 -2%EXPENDITURES: Personal Service 0.52 0.43 -17% Operations, Services 0.39 0.20 -49% Transfer Out 0.38 0.38 0%Total Operating Expenditures 1.29 1.01 -22%Net Operating Income (Loss) (0.18) 0.08 NON-OPERATING REVENUES: Investment Income 0.02 0.08 300% Gas Well Royalties 0.36 0.19 -47% Miscellaneos Income 0.00 0.00 0%Total Non-Operating Revenues 0.38 0.27 -29%NON-OPERATING EXPENDITURES: Transfer Out - Capital 0.25 0.30 20%Total Non-Operating Expenditures 0.25 0.30 20%Net Non-Operating Income (Loss) 0.13 (0.03) Net Income (Loss) (0.05) 0.05 Ending Working Capital and Reserves 2.76$ 2.93$ 1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2019‐20 budget process.
FY 2019-20 FY 2019-20ANNUAL PRELIMINARYDESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/19 2.35$ 3.44$ RESOURCES: Franchise Fees 13.09 12.97 -1% Street Cuts 0.37 0.37 0% Investment Income 0.01 0.07 600% Transfers In 1.18 1.32 12%Total Revenues 14.65 14.73 1%Total Resources 17.00 18.17 EXPENDITURES: Personal Service 3.51 3.25 -7% Materials & Supplies 0.09 0.08 -11% Maintenance & Repairs 7.36 5.78 -21% Operations, Services0.81 0.75 -7% Transfer Out3.96 4.15 5%Total Expenditures15.73 14.01 -11%Net Income (Loss)(1.08) 0.72 Ending Fund Balance1.27$ 4.16$ FY 2019-201Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsMaintenance & Repairs are lower than budgeted due to a delay of street projects related to weather and the impact of COVID‐19.No surface treatments were completed in the 4thquarter for FY18‐19 or for FY19‐20. Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY18-19FY19-20020406080100Qtr 1 Qtr 2 Qtr 3 Qtr 4Lane Miles Surface TreatmentFY 18-19FY 19-20 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0 $14.0 $15.0 $16.0Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2019-20 FY 2019-20GRANT PRELIMINARY FY 2019-20DESCRIPTIONAMOUNT ACTUALS VARIANCE2019-20 Budget Comm Development13.77$ 1.62$ -57% Public Safety 0.63 0.56 -11% Transportation161.80 21.55 -65% Other 0.36 0.04 -89%Total Budget 66.56 23.77 -64%New Awards Public Safety 1.80 1.72 -4% Transportation 3.21 3.21 0% Coronavirus Relief Fund (CRF) 7.62 4.80 -37% Other 0.21 0.21 0%Total New Awards 12.84 9.94 -23%Totals 79.40$ 33.71$ -58%COMM DEV4.75%PUBLIC SAFETY3.07%TRANS81.87%CRF9.60%OTHER0.71%FY 2019‐20 Grants Awarded $‐ $20.0 $40.0 $60.0 $80.0COMMDEVPUBLICSAFETYTRANSCRFOTHERMillionsAwardsExpensesFY 2019‐20 Awards & Expenses (in Millions)Key Trends:The following grants have been received in FY 2019-20: Federal Equitable Sharing: $243,254Chapter 59 Asset Forfeitures: $26,105U.S. Marshals Violent Offenders Task: $78,223Organized Crime Drug Enforcement: $18,148USSS’ N Texas Crimes Task Force: $5,000PD-Law Enforcement Officer Education: $9,600Sexual Assault Nurse Examiners: $1,779National Sexual Assault Kit Initiative Grant: $27,417North Texas Organized Crime Task Force: $8,857Ambulance Services-Uncompensated Care Cost: $923,869Urban Search & Rescue Response System: $323,143Texas Intrastate Fire Mutual Aid System: $38,156Texas Department of Public Safety's Texas Division of Emergency Management (TDEM): $16,725Coronavirus Emergency Supplemental Funding: $1,080IH35 E FR & Brinker Signal: $204,937Fort Worth Drive Utility Improvement: $3,000,000Airport West Side Runway Grant: $1,958Collaborative Summer Library Program: $118Alternative Fueling Facilities Program: $6,450Coronavirus Relief Fund from Denton County: $4,802,113TDEM-COVID 19-Public Assistance Grant: $47,422Texas Workforce Commission:$152,003Humanities Texas Relief Grant: $92City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.1This grant amount will be spent over several years and the fiscal year 2019-20 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.
Section 2
City of Denton
Quarterly Financial Report
September 2020
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The information provided is unaudited; for a complete audited report, please refer to the City of Denton Comprehensive Annual Financial Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton General Fund
Schedule of Revenues - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
REVENUE DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
Current Year - Ad Valorem 45,518,886$ 47,996,976$ 48,097,387$ 0%
Delinquent - Ad Valorem 373,348 311,978 136,678 -56%
Miscellaneous Penalties & Fees 402,957 320,775 397,145 24%
Ad Valorem Taxes 46,295,191 48,629,729 48,631,210 0%
Sales Tax 38,330,825 39,281,942 39,337,834 0%
Franchise - Gas Utilities 341,345 384,313 320,976 -16%
Franchise - Private Electric Utilities 121,054 117,980 120,020 2%
Franchise - Cable 468,667 363,687 320,569 -12%
Franchise - Telecom 229,722 53,301 76,929 44%
Franchise - Denton Municipal Utilities 3,824,061 3,679,652 3,760,439 2%
Franchise Fees 4,984,849 4,598,933 4,598,933 0%
Other Taxes 523,268 501,870 304,294 -39%
Ambulance Service Fees 3,057,598 3,679,000 3,817,135 4%
Fire Department Fees 195,104 208,000 147,179 -29%
Building Inspections Fees 594,962 597,476 574,529 -4%
Park Department Fees 1,760,318 2,040,353 226,246 -89%
Planning Department Fees 1,134,739 1,362,254 1,909,039 40%
Reprographics Fees 324,216 97,603 85,380 -13%
Miscellaneous Service Fees 153,224 182,471 88,325 -52%
Service Fees 7,220,161 8,167,157 6,847,833 -16%
Denton Municipal Fines 1,465,332 1,503,486 967,893 -36%
Parking Fines 282,940 262,620 129,640 -51%
Miscellaneous Fines and Fees 839,388 725,712 492,558 -32%
Court Administrative and Service Fees 1,064,037 1,084,800 689,681 -36%
Fines and Fees 3,651,697 3,576,618 2,279,772 -36%
Demolition Permits 6,555 4,430 12,665 186%
Building Permits 3,784,319 6,526,709 5,155,833 -21%
Certificate of Occupancy 70,810 67,226 49,323 -27%
Miscellaneous Licenses and Permits 28,136 28,087 7,307 -74%
Licenses and Permits 3,889,820 6,626,452 5,225,128 -21%
Investment Income 1,114,348 903,382 793,413 -12%
Miscellaneous Revenues 1,791,483 2,409,191 1,492,274 -38%
Miscellaneous Resources 2,905,831 3,312,573 2,285,687 -31%
ROI - Denton Municipal Utilities 8,458,559 8,978,547 11,199,283 25%
Transfers 10,631,697 12,662,121 16,154,076 28%
Transfers 19,090,256 21,640,668 27,353,359 26%
CRF Funding
Total General Fund Revenues 126,891,898$ 136,335,942$ 136,864,050$ 0%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
Y-T-D BUDGET ACTUALS ACTUALS
NEIGHBORHOOD SERVICES
Building Inspections 3,055,220$ 3,437,095$ 3,285,877$ -4%
Community Improvement Services 1,443,258 1,620,557 1,238,232 -24%
Libraries 5,847,381 6,195,023 5,894,641 -5%
Parks and Recreation 10,291,254 12,114,271 9,495,161 -22%
Planning 3,364,924 4,054,801 3,519,496 -13%
Gas Well Review 332,675 422,398 399,706 -5%
Social Services 637,046 1,716,712 1,198,940 -30%
24,971,758 29,560,857 25,032,053 -15%
PUBLIC SAFETY
Animal Services 2,014,949 2,293,869 2,270,464 -1%
Fire 30,477,640 31,856,795 33,317,554 5%
Municipal Court 1,094,975 1,182,784 1,418,427 20%
Municipal Judge 422,835 564,530 540,696 -4%
Police 34,929,226 39,933,339 39,101,488 -2%
68,939,625 75,831,317 76,648,629 1%
TRANSPORTATION
Traffic Operations 2,062,024 2,310,060 2,474,424 7%
Transportation Operations 192,080 - - 0%
Street Lighting 825,907 850,000 820,716 -3%
3,080,011 3,160,060 3,295,140 4%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 2,351,618 2,458,145 2,172,622 -12%
Economic Development 4,759,609 4,962,803 4,075,220 -18%
Facilities Management 4,696,820 - 212 212%
Finance 3,327,966 3,965,753 3,680,300 -7%
Human Resources 1,762,011 1,826,381 2,226,733 22%
Internal Audit 444,879 643,519 466,929 -27%
Legal Administration 2,547,530 2,883,241 2,834,145 -2%
Public Affairs 1,950,990 2,413,173 1,941,978 -20%
Non-Departmental 7,637,622 8,791,300 11,629,316 32%
29,479,045 27,944,315 29,027,455 4%
TOTAL EXPENDITURES 126,470,439$ 136,496,549$ 134,003,277$ -2%
Beginning FY 19-20, Transportation Operations and Facilities Management are no longer budgeted within the General Fund.
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 9/30/19 55,642,370$ 77,919,436$
REVENUES:
Rate Revenues 147,838,341$ 146,489,831 145,211,390 -1%
Transmission Revenues 44,607,697 46,700,670 48,494,644 4%
Other Revenues 8,888,971 3,977,004 9,728,745 145%
COVID-19 Revenue Impact -
DEC Revenues 37,482,023 25,073,394 12,762,627 -49%
Total Revenues 238,817,032 222,240,899 216,197,406 -3%
EXPENDITURES:
Purchased Power 90,120,153 74,298,356 60,164,760 -19%
DEC Fuel 6,954,969 12,475,775 3,599,350 -71%
Transmission of Power 16,997,292 18,616,102 16,767,829 -10%
Personnel Services 17,795,822 22,747,359 19,662,169 -14%
Materials and Supplies 679,912 1,283,850 751,158 -41%
Maintenance and Repair 670,898 1,826,609 717,643 -61%
Insurance 745,713 1,424,039 1,434,149 1%
Return on Investment Return on Investment6,331,599 7,913,804 8,970,039 13%
Franchise Fee Franchise Fee9,039,835 9,448,292 9,413,971 0%
Miscellaneous 616,222 1,374,225 1,510,654 10%
Operations 4,719,210 8,415,902 5,137,426 -39%
Debt Service 50,649,750 54,728,969 54,568,897 0%
Interfund Transfers 14,310,408 15,848,533 14,978,366 -5%
Capital Outlay 16,312,335 1,826,394 5,992,053 228%
Total Expenditures 235,944,118 232,228,209 203,668,464 -12%
Net Income (Loss)2,872,914$ (9,987,310) 12,528,942
Ending Working Capital and Reserves 45,655,060$ 90,448,378$
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/191 23,539,348$ 25,457,474$
REVENUES:
Water Sales Residential 18,035,192$ 20,508,495 20,375,256 -1%
Water Sales Commercial 16,203,789 17,661,792 17,090,211 -3%
Water for Resale 1,113,851 1,184,134 1,612,230 36%
Other Water 1,387,309 865,090 1,209,078 40%
Transfers In 1,490,053 949,888 1,149,991 21%
Investment Income 427,212 294,000 302,800 3%
Impact Fee Revenue 5,700,000 6,605,000 6,605,000 0%
Total Revenues 44,357,406 48,068,399 48,344,566 1%
EXPENDITURES:
Personal Service 7,654,405 8,902,207 8,139,916 -9%
Purchased Power 1,277,220 1,410,789 1,342,855 -5%
Purchase of Water 2,059 3,000 1,834 -39%
Materials and Supplies 1,396,965 1,510,203 1,472,974 -2%
Maintenance and Repairs 1,200,652 1,554,503 1,477,259 -5%
Insurance 223,433 232,791 232,788 0%
Miscellaneous 245,728 401,060 185,776 -54%
Operations, Services 1,434,569 2,317,980 1,767,452 -24%
Capital Outlay 15,105,245 13,686,219 13,838,194 1%
Return on Investment 1,255,412 1,404,533 1,359,420 -3%
Franchise Fee 1,793,445 1,991,812 1,942,028 -2%
Debt Service 12,700,195 12,879,020 12,879,020 0%
Transfers Out 3,686,482 4,767,646 4,896,659 3%
Total Expenditures 47,975,810 51,061,763 49,536,175 -3%
Net Income (Loss)(3,618,404)$ (2,993,364) (1,191,609)
Ending Working Capital
and Reserves 20,545,984$ 24,265,865$
1 The Beginning Working Capital balance excludes $13,045,131 of Impact Fee Reserves and $750,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019-20
City of Denton
Wastewater Fund1
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/19 16,190,748$ 16,927,079$
REVENUES:
Residential Fees 11,536,543$ 11,545,026 11,422,482 -1%
Commercial Fees 11,807,867 12,784,519 11,730,567 -8%
Effluent Irrigation Fees 113,177 60,424 119,237 97%
Wholesale Fees 699,724 693,802 758,808 9%
Other Wastewater Fees 1,513,552 1,580,878 1,916,430 21%
Drainage Fees 4,880,196 4,959,200 5,089,545 3%
Transfer In 651,795 587,895 587,895 0%
Investment Income 297,875 234,858 218,830 -7%
Impact Fee Reserves 2,000,000 4,270,000 4,270,000 0%
Total Revenues 33,500,729 36,716,602 36,113,794 -2%
EXPENDITURES:
Personal Service 7,910,033 9,357,192 8,601,781 -8%
Purchased Power 1,064,075 1,221,000 1,030,524 -16%
Materials and Supplies 1,003,992 1,327,538 988,031 -26%
Maintenance and Repairs 1,071,889 1,770,032 1,090,847 -38%
Insurance 232,020 265,743 265,743 0%
Miscellaneous 73,183 82,218 50,098 -39%
Operations, Services 2,072,895 3,024,514 2,364,829 -22%
Capital Outlay 10,963,806 6,810,067 8,041,230 18%
Return on Investment 871,548 1,196,502 869,825 -27%
Franchise Fee 1,245,069 1,334,082 1,242,607 -7%
Debt Service 6,858,723 7,485,506 7,479,386 0%
Transfers Out 3,695,404 4,450,481 4,872,533 9%
Total Expenditures 37,062,637 38,324,875 36,897,434 -4%
Net Income (Loss)(3,561,908)$ (1,608,273) (783,640)
Ending Working Capital
and Reserves 14,582,475$ 16,143,439$
1 Includes Drainage.
2 The Beginning Working Capital balance excludes $6,766,815 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $540,000 for Development Plan Line Reserves.
Reserves of $135,000, and Drainage Reserves of $1,000,000.
3 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2019-20 budget process.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
REVENUES:
Residential Drainage Fees 1,882,655$ 1,897,150$ 1,949,739$ 3%
Nonresidential Drainage Fees 2,997,541 3,062,050 3,139,806 3%
Wastewater Resources - 35,000 - -100%
Investment Interest Income - - - 0%
General Fund Transfer 316,795 352,895 352,895 0%
Total Revenues 5,196,991 5,347,095 5,442,440 2%
EXPENDITURES:
Personal Service 1,696,084 2,304,775 2,036,843 -12%
Materials and Supplies 56,702 80,425 52,585 -35%
Maintenance and Repairs 128,623 127,500 113,186 -11%
Insurance 35,767 41,459 41,459 0%
Miscellaneous 14,342 17,200 6,375 -63%
Operations, Services 447,521 677,047 468,067 -31%
Capital Outlay 1,874,843 1,144,236 1,625,318 42%
Debt Service 477,433 477,893 473,464 -1%
Transfer Out 465,676 476,560 625,143 31%
Total Expenditures 5,196,991 5,347,095 5,442,440 2%
Net Income (Loss)-$ -$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended Sepember 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/191 10,355,478$ 9,205,597$
REVENUES:
Refuse Fees - Residential 5,797,050$ 5,797,663 5,082,472 -12%
Refuse Fees - Commercial 15,202,835 15,432,175 14,045,123 -9%
Residential Recycling 5,318,817 5,331,694 5,448,328 2%
Commercial Recycling 1,409,972 1,705,012 1,288,420 -24%
Landfill Gate and Material Sales 6,553,633 5,854,458 9,382,403 60%
Recycled Material Sales 67,342 61,000 67,343 10%
Asset Sales and Interest Income 161,264 688,486 1,007,520 46%
Other Revenue 243,748 520,925 559,851 7%
Total Revenues 34,754,661 35,391,413 36,881,460 4%
EXPENDITURES:
Personal Service 9,828,170 11,104,627 10,443,976 -6%
Materials and Supplies 224,971 379,463 182,559 -52%
Maintenance and Repairs 238,423 327,192 208,421 -36%
Insurance 269,506 257,942 259,650 1%
Miscellaneous 77,954 102,120 68,433 -33%
Operations, Services 6,060,704 6,999,814 5,676,246 -19%
Capital Outlay 1,327,649 3,810,010 4,410,619 16%
Debt Service 8,995,454 8,451,027 8,449,966 0%
Franchise Fee 1,733,559 1,755,737 1,781,445 1%
Transfers for Landfill Closure 1,089,201 609,985 - -100%
Admin Transfers Out 3,449,699 4,652,484 4,371,889 -6%
Total Expenditures 33,295,290 38,450,401 35,853,204 -7%
Net Income (Loss)1,459,371$ (3,058,988) 1,028,256
Ending Working Capital
and Reserves 7,296,490$ 10,233,853$
1 The Beginning Working Capital Reserve excludes $11,057,545 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019-
20 budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/19 2,814,692$ 2,878,940$
OPERATING REVENUES:
Airport Ground Leases 738,820$ 768,051 788,994 3%
FBO Commissions 209,927 211,552 180,955 -14%
Miscellaneous 135,897 135,437 124,354 -8%
Total Operating Revenues 1,084,644 1,115,040 1,094,304 -2%
OPERATING EXPENDITURES:
Personal Service 501,861 518,930 431,399 -17%
Materials and Supplies 17,554 44,794 15,436 -66%
Maintenance and Repairs 31,657 72,400 27,231 -62%
Insurance 43,792 24,376 24,376 0%
Miscellaneous - 100 - -100%
Operations 226,056 250,565 131,787 -47%
Transfers Out - Operating 521,547 383,487 381,355 -1%
Total Operating Expenses 1,342,467 1,294,652 1,011,584 -22%
Operating (Loss)(257,823) (179,612) 82,720
NON-OPERATING REVENUES:
Investment Income 101,244 22,263 79,729 258%
Gas Well Royalties 313,325 358,900 192,175 -46%
Other Non-Operating Revenue - - 5,049 -
Total Non-Operating Revenues 414,569 381,163 276,953 -27%
NON-OPERATING EXPENDITURES:
Transfers Out - Capital 250,000 250,000 300,000 20%
Total Non-Operating Expenses 250,000 250,000 300,000 20%
Non-Operating Income (Loss)164,569 131,163 (23,047)
Net Income (Loss)(93,254)$ (48,449)59,673
Ending Working Capital 2,766,243$ 2,938,613$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was
estimated in the FY 2019-20 budget process.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended Sept 30, 2020
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Fund Balance
as of 9/30/2019 2,348,270$ 3,441,732$
RESOURCES:
Franchise Fees 12,717,231$ 13,087,053 12,974,273 -1%
Street Cuts 192,014 371,423 369,549 -1%
Investment Income 50,522 10,000 69,958 600%
Transfers In 1,034,582 1,184,582 1,323,205 12%
Total Resources 13,994,349 14,653,058 14,736,985 1%
EXPENDITURES:
Personal Service 3,282,814 3,505,267 3,250,039 -7%
Materials and Supplies 108,903 87,150 75,507 -13%
Maintenance and Repairs 6,776,684 7,358,459 5,781,284 -21%
Insurance 72,727 94,312 94,312 0%
Miscellaneous 5,062 5,000 3,023 -40%
Operations, Services 837,101 710,302 656,012 -8%
Transfer Out 1,092,753 3,970,626 4,147,213 4%
Total Expenditures 12,176,044 15,731,116 14,007,390 -11%
Net Income (Loss)1,818,305$ (1,078,058) 729,595
Ending Fund Balance 1,270,212$ 4,171,327$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process.
City of Denton
Grants
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended September 30, 2020
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20192 ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
FY 2019-20 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)4,274,427$ 2,314,276$ 1,032,271$ -55%
US Dept of HUD -
HOME Investment Partnership Program 3,725,784 1,458,845 589,150 -60%
Community Development1 8,000,211 3,773,121 1,621,421 -57%
TxDot STEP Comprehensive Grant - 97,315 50,422 -48%
Victim Assistance Coordinator Grant - 89,040 82,011 -8%
2019 UASI-Specialized Regional Response Teams
Sustainment - 144,137 139,908 -3%
Emergency Management Performance Grant - 40,977 37,677 -8%
Staffing for Adequate Fire & Emergency
Response (SAFER) Grant 736,068 260,913 252,415 -3%
Public Safety 736,068 632,382 562,433 -11%
Airport Maintenance (RAMP) Grant - 50,000 50,000 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 39,389,775 9,624,580 7,146,583 -26%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 17,236,196 29,630,282 5,548,492 -81%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 53,865 - -100%
TxDot-RTR-McKinney (Formerly FM426) 3,834,606 16,410,716 7,992,872 -51%
TxDot-RTR-Hickory Creek FM2181-FM2499 224,556 2,204,917 589,414 -73%
TxDot-RTR-North Texas Boulevard Roundabout 67,518 1,946,267 26,541 -99%
TxDot-RTR-ITS COMM Trunk Line 1,379,761 375,417 191,839 -49%
Bicycle & Pedestrian Projects Grant - 1,500,000 - -100%
Transportation1 62,132,412 61,796,044 21,545,741 -65%
Interlibrary Loan Program (ILL) - 25,000 18,648 -25%
TexTreasures Grant - 24,820 24,820
TIFMAS Training Tuition Grant - 9,000 - -100%
Miscellaneous New Grants - 300,000 - -100%
Other - 358,820 43,468 -88%
Total FY 2019-20 Budget 70,868,691 66,560,367 23,773,064 -64%
City of Denton
Grants
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended September 30, 2020
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20192 ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
New Awards
Federal Equitable Sharing - 243,254 243,254 0%
Chapter 59 Asset Forfeitures - 26,105 26,105 0%
U.S. Marshals Violent Offenders Task Force - 78,223 78,223 0%
Organized Crime Drug Enforcement Task Force - 18,148 18,148 0%
USSS' North Texas Financial Crimes Task Force - 5,000 5,000 0%
PD-Law Enforcement Officer Standards &
Education - 9,600 9,600 0%
Sexual Assault Nurse Examiners (SANE)
Reimbursement - 1,779 1,779 0%
National Sexual Assault Kit Initiative Grant - 27,417 27,417 0%
North Texas Organized Crime Task Force
(NTOCTF)- 8,857 8,857 0%
Ambulance Services-Uncompensated Care Cost - 923,869 923,869 0%
Urban Search & Rescue Response System (TEEX)- 323,143 323,143 0%
Texas Intrastate Fire Mutual Aid System-
Emergency Response 38,156 38,156 0%
Texas Department of Public Safety's Texas
Division of Emergency Management (TDEM)-
Hurricane Laura - 16,725 16,725 0%
Coronavirus Emergency Supplemental Funding
Program 82,398 1,080 -99%
Public Safety - 1,802,674 1,721,356 -5%
TxDot-IH35 E FR & Brinker Signal - 204,937 204,937 0%
Improvement - 3,000,000 3,000,000 0%
Airport West Side Runway Grant-Porter Land
Survey - 1,958 1,958 0%
Transportation - 3,206,895 3,206,895 0%
Coronavirus Relief Fund (CRF) from Denton
County - 7,619,755 4,802,113 -37%
Coronavirus Relief Fund (CRF)- 7,619,755 4,802,113 -37%
Collaborative Summer Library Program
Scholarship Award - 118 118 0%
Alternative Fueling Facilities Program - 6,450 6,450 0%
Texas Department of Public Safety's Texas
Division of Emergency Management (TDEM)-
COVID 19-Public Assistance Grant 47,422 47,422 0%
Texas Workforce Commission-50% Chargeback
Credit 152,003 152,003 0%
Humanities Texas Relief Grant 2,860 92 -97%
Others - 208,853 206,085 -1%
Total New Awards - 12,838,177 9,936,449 -23%
TOTALS 70,868,691$ 79,398,544$ 33,709,513$ -58%
1 This grant amount will be spent over several years and the fiscal year 2019-20 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.
Section 3
City of Denton
Quarterly Financial Report
September 2020
REVENUE & ECONOMIC
ANALYSIS
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state and national trends impacting the City’s financial position. The following notes are provided to facilitate this section’s readability.
1. Positive Outlook – Represents favorable conditions for the local
economy. Color code – Green.
2. Cautious Outlook – Represents changing conditions that
require close monitoring. Color code – Yellow.
3. Negative Outlook – Represents unfavorable conditions for the local economy. Color code – Red. The data included in this section have been obtained from a variety of sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City’s investment advisor, First Southwest Asset Management.
National Economic Trends
Period Ending September 30, 2020
Gross Domestic Product (GDP)
The quarter-over-quarter seasonally-adjusted, annualized GDP increase was an eye-popping +33.1%, slightly over the
Bloomberg median forecast of +32%, and a sharp rebound from the historical -31.4% second quarter plunge. The third quarter
gain was the largest in the post-WWII era. The previous post-war record had been +16.7% in 1950. Personal consumption,
the largest component of economic growth, rose +40.7% in the third quarter following a -33.2% drop in Q2. Residential spending (housing) surged +59.3% after a -35.6% drop. Gross private investment climbed +83% after falling -46.6%. Virtually all categories followed a similar plunge/rocket pattern. However, economic growth remains -3.5% below where it was a year ago.
Employment
The headline unemployment rate fell from 8.4% to 7.9% in September, but much of this decline results from a drop in the labor force participation rate, which unexpectedly retreated from 61.7% to 61.2%. According to the Bureau of Labor Statistics (BLS), the number of Americans not in the labor force but currently wanting a job, was little changed in September at 7.3 million. Because these people are not actively looking for work, they are not counted among the unemployed. In total, 19.4 million Americans reported being unable to work because their employer closed or lost
business during the pandemic. On the positive side, jobs are returning (albeit at a slower pace) and the headline unemployment
rate is already well below even the more optimistic forecasts.
Inflation
Although there’s a lot of noise in the numbers, year-over-year core CPI has climbed from a +1.2% pace in May to
+1.7% in both August and September, while year-over-year core PPI has climbed from +0.1% to +1.2%. Neither of these
levels are particularly concerning, but the quick turnaround suggests to some people that prices are suddenly an issue. What’s
happening is that there wasn’t much spending going on in the spring, so prices fell and demand built-up. Later, when everyone was flush with government support and were able to get out and about, demand exceeded supply and prices rose. This isn’t a long-term trend, but it does manifest itself in higher inflation readings.
Early indications suggest October prices have retreated.
Retail Sales
The retail sales advanced by a better-than-expected +1.9% in September, the fastest pace in three months. The category
breakdown suggests there were significant dollars spent on back-to-school clothes and supplies. Clothing and accessory stores (+11%), department stores (+9.7%) and sporting goods and bookstores (+5.7%) all posted outsized gains. Almost all major categories showed increases last month, with auto dealers (+4.0%) and restaurant and bars (+2.1%) also making notable contributions. On a year-over-year basis, overall retail sales are now up a remarkable
+7.1%, although some sectors have thrived (online sales +27%, building materials +23.4%, auto dealers +14.4%), while
others continue to struggle (eating and drinking establishments -13.7%, clothing stores -12.0%). It should be noted that total outlays, which include services in addition to goods, are still below
pre-pandemic levels.
Denton County and Texas Home Sales Texas home sales rose +29.6% in the third quarter, and +18.1% over the same three-month period a year ago. The
average Texas home price in September $325.6k, down slightly from the record high set in July. The available inventory was just 2.3 months, easily the lowest level since the data series began in 1990. In Denton County, unit home sales rose +29.4% during the third quarter and +21.4% over the same three-month period a year ago. The average home price in September was $388.5k, after reaching a record high of $391k in August. On a year-over-year basis, home prices were up +10.3% in Denton County. Home listings totaled 2,315 in September, a -41.7% decline over last year. The available inventory was just 1.7 months, compared to 3.1 months a year ago, and matching the lowest month’s supply in a decade of history.
The paper was prepared by Hilltop Securities Asset Management, is intended for educational and informational purposes only and does not constitute legal or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of Hilltop Securities 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.
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 13.9%increase from the prior quarter at the national
level and a 14.4% increase at the state level. Staff has rated this outlook as Cautious.
Source: U.S. Department of Energy
$0
$2
$4
$6
$8
$10
$12
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
4Q '16 2Q '17 4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
Municipal Cost Index Outlook Negative
Description:The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased
frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments
of Commerce and Labor as well as independently compiled data to project a composite cost picture for the
municipal budget officer or operating department manager. Costs of labor, materials and contract services are all
factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price
Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the
construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis:The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI.An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine
business. The 4th Quarter of 2019-20 shows an increase of 3.0 for a 1.2% increase over the prior quarter and an
increase of 1.7 for a 0.67% increase over the 4th Quarter of 2018-19. 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
247.00
248.00
249.00
250.00
251.00
252.00
253.00
254.00
255.00
256.00
4Q '18 1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
4th Quarter FY 2019-20
Actual Y-T-D
Occupancy Tax Revenue:477,013$ 2,142,483$
FY 2019-20 Budget 862,973$ 3,375,164$
Over (Under) Budget (385,960)$ (1,232,681)$
Hotel Occupancy Tax Budget:3,375,164$
End of Year Projection:2,072,776$
End of Year Actual:2,142,483$
(1,232,681)$
Variance - Actual to Projection 69,707$
Description:Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract,or
agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain
sleeping accommodations; motels; a tourist home, house or court; lodging house; inn; rooming house;or bed and
breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.
Analysis:While the use of this revenue source is restricted by state law,it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy tax
revenue through the 4th Quarter of FY 2020 was 44.7% less than budget and 70.5% less than prior year's actual. This
quarter illustrated a slight increase in hotel activity since the initial COVID-19 Pandemic impact last quarter. Staff has
rated the outlook for this economic indicator as Positive.
FISCAL YEAR FORECAST
Variance - Actual to Budget
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
Sales and Use Tax Analysis Outlook Positive
4th Quarter FY 2019-20
Actual Y-T-D
Revenue: Gross Sales Tax
Municipal Operations 622,887$ 1,939,605$
General Retail & Others 10,276,533 38,909,675
Comptroller Fees (201,640) (763,358)
Amount Retained (197,606) (748,090)
Total Revenue 10,500,174$ 39,337,832$
Expenses: Economic Incentives*
Economic Incentives1 609,716$ 2,776,590$
Net Total 9,890,458 36,561,242
FY 2019-20 Budget 9,586,330 36,270,852
Over(Under) Budget 304,128$ 290,390$
Sales Tax Budget:39,281,942$
Year End Projection:39,337,832
39,337,832
Variance to Original Budget:55,890$
Variance to Year End Projection:-$
Economic Development Expenditure Budget:3,011,090$
Year End Projection:2,776,590
Year End Actual:2,776,590
Variance to Original Budget:234,500$
Variance to Year End Projection:-$
Description:Tax imposed on all retail sales, leases, and rentals of most goods,as well as taxable services. The total tax
rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 4th Quarter of FY 2020 compared to revenues from
the prior year 4th Quarter shows a 3.24% Increase, and compared to the budget shows a 1.14% increase. Staff has rated
this indicator as Positive.
Year End Actual:
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Gross Sales Tax Collections (Millions)
FY 2015-16 Actual FY 2016-17 Actual FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual
Certificates of Occupancy Outlook Cautious
Source: City of Denton's Development Services Department.
Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building
Code (IBC)and applicable City ordinances. The IBC states, "that no building shall be used or occupied,and no
change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the
building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building,
fire and consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition
of the local economy. Certificates of Occupancy decreased 40.19%from the prior quarter and decreased 24.37%
from the 4th Quarter of 2019. Staff has rated the outlook for this revenue indicator as Cautious.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
Certificates of Occupancy
Residential Permits Outlook Cautious
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC)and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy.In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits decreased 2.33%from the prior quarter and decreased 29.29%from the 4th
Quarter of 2019. Staff has rated the outlook for this revenue indicator as Cautious.
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
4Q
'18
1Q
'19
2Q
'19
3Q
'19
4Q
'19
1Q
'20
2Q
'20
3Q
'20
4Q
'20
Residential Permits
Texas Leading Indicators Index Outlook Cautious
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising,and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows a decrease in the state's rate of growth. The index increased 7.27%from the prior quarter and
decreased 13.08% from the 4th Quarter of 2018-19. Staff has rated this indicator as Cautious.
100.0
105.0
110.0
115.0
120.0
125.0
130.0
135.0
140.0
4Q '13 2Q '14 4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20
Texas Leading Indicators Index
Unemployment Rate Index Outlook Positive
Description:Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 6.6%for the 4th Quarter.
As a result of the downward unemployment trend, staff has rated the outlook 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
20.0
4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20
Unemployment Rate Index
Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
September 2020
INVESTMENT REPORT
4th Fiscal Quarter 2020- September 30, 2020 Page 1
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4th Fiscal Quarter 2020- September 30, 2020 Page 2
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ECONOMIC SUMMARY
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Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2020
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Treasury Securities - Coupon
106U.S. TREASURY4011 5,000,000.00 4,992,720.42 01/15/20212.00002/04/2019 5,027,345.00 2.5179128283Q1
122U.S. TREASURY4016 15,000,000.00 15,006,478.95 01/31/20212.50004/10/2019 15,118,365.00 2.3669128285X4
75U.S. TREASURY4022 5,000,000.00 4,997,013.17 12/15/20201.87505/31/2019 5,017,970.00 2.1739128283L2
137U.S. TREASURY4024 10,000,000.00 10,003,761.48 02/15/20212.25005/31/2019 10,079,300.00 2.1469128283X6
272U.S. TREASURY4026 10,000,000.00 9,949,017.14 06/30/20211.12506/17/2019 10,075,000.00 1.826912828S27
137U.S. TREASURY4033 10,000,000.00 10,012,029.18 02/15/20212.25007/31/2019 10,079,300.00 1.9229128283X6
137U.S. TREASURY4039 10,000,000.00 10,017,428.46 02/15/20212.25009/12/2019 10,079,300.00 1.7759128283X6
287U.S. TREASURY4040 10,000,000.00 10,070,068.36 07/15/20212.62509/12/2019 10,196,880.00 1.715912828Y20
137U.S. TREASURY4042 10,000,000.00 10,014,698.68 02/15/20212.25009/17/2019 10,079,300.00 1.8499128283X6
318U.S. TREASURY4043 10,000,000.00 10,028,652.18 08/15/20212.12509/17/2019 10,174,220.00 1.788912828RC6
122U.S. TREASURY4046 5,000,000.00 5,007,716.77 01/31/20212.12511/01/2019 5,033,205.00 1.654912828B58
287U.S. TREASURY4047 5,000,000.00 5,036,651.14 07/15/20212.62511/25/2019 5,098,440.00 1.675912828Y20
334U.S. TREASURY4048 5,000,000.00 4,975,827.88 08/31/20211.12511/25/2019 5,044,920.00 1.6649128282F6
379U.S. TREASURY4049 4,000,000.00 4,049,692.26 10/15/20212.87511/25/2019 4,113,436.00 1.6539128285F3
349U.S. TREASURY4053 5,000,000.00 5,054,774.69 09/15/20212.75001/08/2020 5,124,610.00 1.5819128285A4
137U.S. TREASURY4064 10,000,000.00 10,041,436.39 02/15/20212.25003/02/2020 10,079,300.00 1.1339128283X6
129,257,967.15 1.860130,420,891.00129,000,000.00129,274,646.18Subtotal and Average 197
Federal Agency Issues - Coupon
410FFCB40067,500,000.00 7,516,804.56 11/15/20213.05012/12/2018 7,744,577.40 2.8403133EJT74
102FFCB40095,000,000.00 4,999,827.83 01/11/20212.55002/04/2019 5,033,548.10 2.5623133EJ4Q9
1,054FFCB401310,000,000.00 9,999,422.22 08/21/20232.57002/21/2019 10,674,111.20 2.5723133EKAU0
516FFCB401510,000,000.00 9,999,303.21 03/01/20222.55003/01/2019 10,337,048.00 2.5553133EKBV7
186FFCB401915,000,000.00 15,015,484.88 04/05/20212.54005/07/2019 15,182,785.20 2.3323133EJJD2
76FFCB40235,000,000.00 5,002,202.70 12/16/20202.40005/31/2019 5,023,913.15 2.1843133EKHA7
438FFCB405410,000,000.00 10,000,870.22 12/13/20211.58001/08/2020 10,171,325.60 1.5723133ELDU5
477FFCB405610,000,000.00 10,020,256.34 01/21/20221.60001/31/2020 10,187,819.80 1.4423133ELHR8
315FFCB407210,000,000.00 9,999,375.22 08/12/20210.16005/14/2020 9,999,901.60 0.1673133ELZE7
594FFCB40765,000,000.00 4,991,443.03 05/18/20220.16005/28/2020 4,999,437.35 0.2653133ELZN7
130FHLB40293,945,000.00 3,946,823.48 02/08/20212.10007/12/2019 3,972,935.14 1.966313376XN0
162FHLB403010,000,000.00 9,990,769.33 03/12/20211.75007/12/2019 10,072,743.60 1.960313382K69
0FHLB404110,000,000.00 10,000,000.00 10/01/20202.62509/12/2019 10,000,000.00 1.8193130AEWA4
253FHLB406310,000,000.00 10,085,239.65 06/11/20212.25003/02/2020 10,146,740.60 1.0113130A1W95
642FHLB406710,000,000.00 10,221,249.94 07/05/20221.95503/16/2020 10,312,914.80 0.0693130ABCY0
365FHLB40685,000,000.00 5,000,000.00 10/01/20210.32004/02/2020 5,009,967.65 0.3203130AJGL7
445FHLB407010,000,000.00 10,157,720.20 12/20/20211.62504/16/2020 10,182,894.60 0.3273130AHSR5
228FHLMC402710,080,000.00 10,058,275.70 05/17/20211.57006/17/2019 10,171,610.67 1.9213134G9HB6
615FHLMC40785,000,000.00 4,998,382.47 06/08/20220.25006/15/2020 5,006,903.70 0.2693134GVJ66
Portfolio CITY
APData Updated: SET_MO: 10/29/2020 18:05
Run Date: 10/29/2020 - 18:08 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.1
Days to
Maturity
Page 2
Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2020
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Federal Agency Issues - Coupon
29FNMA400110,000,000.00 10,000,117.68 10/30/20202.87511/30/2018 10,022,481.20 2.8593135G0U84
461FNMA406610,000,000.00 10,163,551.93 01/05/20222.00003/16/2020 10,238,385.40 0.6933135G0S38
194FNMA407110,000,000.00 10,125,062.61 04/13/20212.50005/14/2020 10,124,737.00 0.1523135G0U27
192,292,183.20 1.476194,616,781.76191,525,000.00195,659,234.96Subtotal and Average 352
Municipal Bonds - Coupon
137PLANO ISD-BLDG4074 4,000,000.00 4,070,902.81 02/15/20215.00005/22/2020 4,071,920.00 0.231727199XZ9
329TEXAS STATE GENERAL OBLIGATION4083 10,000,000.00 10,340,855.03 08/26/20214.00009/02/2020 10,342,600.00 0.211882724SY4
14,411,757.84 0.21714,414,520.0014,000,000.0014,088,755.98Subtotal and Average 275
Commercial Paper Disc. - Amortizing
61BAYLOR SCOTT4086 10,000,000.00 9,997,288.89 12/01/20200.16009/22/2020 9,997,870.00 0.16207287CM17
48State of California4084 5,000,000.00 5,000,000.00 11/18/202008/20/2020 4,999,950.00 0.00013068BGB7
36RBC40585,000,000.00 4,992,150.00 11/06/20201.57002/13/2020 4,998,625.00 1.63178009AL69
97TOYOTA MOTOR CREDIT4079 5,000,000.00 4,996,093.06 01/06/20210.29007/10/2020 4,993,840.00 0.29489233GN69
117TOYOTA MOTOR CREDIT4080 10,000,000.00 9,989,925.00 01/26/20210.31007/29/2020 9,985,130.00 0.31589233GNS1
60University of North Carolina4085 10,000,000.00 10,000,000.00 11/30/202008/31/2020 9,999,700.00 0.00009657TJF1
44,975,456.95 0.32044,975,115.0045,000,000.0049,637,189.26Subtotal and Average 73
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXPOOL3996 25,000,000.00 25,000,000.00 0.15325,000,000.00 0.153SYS3996
1LOCAL GOVT INV POOL - TEXSTAR3641 190,372,945.78 190,372,945.78 0.116190,372,945.78 0.116SYS3641
215,372,945.78 0.120215,372,945.78215,372,945.78171,918,264.17Subtotal and Average 1
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 4,082,691.29 4,082,691.29 0.2504,082,691.29 0.250SYS3706
1DEMAND DEPOSITS - WELLS FARGO4082 7,620,136.03 7,620,136.0307/23/2020 7,620,136.03 0.000SYS4082
11,702,827.32 0.08711,702,827.3211,702,827.3210,811,377.83Subtotal and Average 1
0.935571,389,468.38 606,600,773.10 165611,503,080.86 608,013,138.24Total and Average
Portfolio CITY
APData Updated: SET_MO: 10/29/2020 18:05
Run Date: 10/29/2020 - 18:08 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 3
Par Value Book Value Stated
RateMarket Value
September 30, 2020
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
0.00
0.935571,389,468.38 606,600,773.10 165
0Average Balance
611,503,080.86 608,013,138.24Total Cash and Investments
Portfolio CITY
APData Updated: SET_MO: 10/29/2020 18:05
Run Date: 10/29/2020 - 18:08 PM (PRF_PM2) 7.3.0