2021-068 Q3 Financial ReportDate: September 3, 2021 Report No. 2021-068
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending June 30, 2021.
BACKGROUND:
Attached for your review is the Quarterly Financial Report for the period ending June 30, 2021.
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 June 30, 2021.
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
June 2021
Executive Dashboards
Note: All figures presented are in millions of dollars.FY 2020-21 FY 2020-21ANNUAL YTDDESCRIPTIONBUDGET 1ACTUALS ANNUAL VARIANCEBeginning Fund Balance as of 09/30/20 31.67$ 33.78$ 33.78$ RESOURCES: Ad Valorem Taxes48.34 49.07 49.83 3% Sales Tax37.10 32.81 44.04 19% Franchise Fees4.00 2.66 3.55 -11% Other Taxes0.31 0.15 0.44 42% Service Fees7.77 4.65 8.09 4% Fines and Fees3.54 1.15 2.24 -37% Licenses and Permits6.12 4.63 5.98 -2% Miscellaneous Revenue5.57 2.07 6.93 24% Transfers In27.48 20.62 27.76 1%Total Revenues140.23 117.81 148.86 6%Total Resources171.90 151.59 182.64 EXPENDITURES: Personnel Service97.43 73.45 96.19 -1% Material and Supplies3.48 1.81 2.82 -19% Maintenance and Repairs1.66 0.83 1.63 -2% Insurance1.55 1.17 1.55 0% Miscellaneous1.72 1.01 1.68 -2% Operations15.06 11.45 15.75 5% Transfers Out18.07 14.16 23.56 30% Fixed Assets0.58 0.30 0.46 -21%Total Expenditures139.55 104.18 143.64 3%Net Income (Loss)0.68 13.63 5.22 Ending Fund Balance32.35$ 47.41$ 39.00$ FY 2020-21PROJECTIONSCity of Denton, Texas General Fund Executive Dashboard $‐ $20 $40 $60 $80 $100 $120Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsSales tax is projected to be higher than budget due to an increase in consumer spending.Franchise fees are trending lower due to decrease in utility revenue.Other taxes will be higher than budget due to increased mixed beverage tax collection.Fines and fees are projected lower due to the COVID.Transfers out are projected to be above budget due to revenue funding in projects. $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0Sales Tax Monthly Average by Quarter1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardFY 2020-21ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 9/30/20277.92$ 110.06$ 110.06$ RESOURCES: Rate Revenues142.18 96.64 142.18 0% Transmission Revenue55.60 34.59 55.60 0% Other Revenues9.07 2.38 9.94 10% DEC Revenues24.55 130.69 137.16 459%Total Revenues231.40 264.30 344.88 49%Total Resources309.32 374.36 454.94 EXPENDITURES: Purchased Power210.84 287.40 150.12 -29% DEC Fuel12.48 25.75 39.16 214% Transmission of Power19.18 11.41 19.18 0% Personnel Service20.29 13.54 20.29 0% Operation and Maintenance35.17 21.05 35.54 1% Debt Service55.50 47.76 55.50 0% Transfers Out17.15 12.47 16.76 -2% Capital Outlay0.49 0.39 0.49 0%Total Expenditures371.10 419.77 337.04 -9%Net Income (Loss)(139.70) (155.47) 7.84 Purchaed Power Covered through Debt Financing140.00 140.00 Ending Working Capital and Reserves78.22$ 94.59$ 117.90$ FY 2020-21PROJECTIONS$0$50$100$150$200$250$300$350$400$450Oct‐20 Nov‐20 Dec‐20 Jan‐21 Feb‐21 Mar‐21 Apr‐21 May‐21 Jun‐21Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsAs a result of winter storm Uri, both revenues and expenditures for Purchased Power exceed the original FY 2020‐21 budget. A budget amendment in the amount of $140 million was approved by Council in March 2021.Purchased Power expenditures will be reduced by $140 million and covered by long‐term debt to be issued in September. Therefore, the year‐end projection for Purchased Power is lower than the year‐to‐date amount. The Beginning Working Capital and Reserves is $23 Million higher than budgeted as a result of lower Purchase Power costs, lower DEC fuel, reduced operational costs and receipt of $5.6 Million in unanticipated revenue from TMPA in FY 2019‐20.01002003004005006003Q 151Q163Q161Q173Q171Q183Q181Q193Q191Q203Q201Q213Q212015 – 2021 Historical Quarterly GWH Sales1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.2Beginning Working Capital and Reserves as of 9/30/20 increased by $8.87 million as a result of the change in classification of purchased power escrow deposit accounts.
Note: All figures presented are in millions of dollars.FY 2020-21ANNUALYTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/20222.67$ 23.34$ 23.34$ RESOURCES: Water Sales 39.58 25.99 39.33 -1% Other Water Revenues1.16 1.16 1.16 0% Transfers In1.68 1.26 1.68 0% Impact Fee Revenue6.60 4.95 6.60 0%Total Revenues49.02 33.36 48.77 -1%Total Resources71.69 56.70 72.11 EXPENDITURES: P e rs o nne l S e rvic e s8.65 5.81 8.04 -7% Operations, Services11.26 6.45 10.50 -7% Capital Outlay16.71 5.47 16.71 0% Debt Service11.06 10.52 11.06 0% Transfers Out5.26 4.12 5.26 0%Total Expenditures52.94 32.37 51.57 -3%Net Income (Loss)(3.92) 0.99 (2.80) Ending Working Capital and Reserves 18.75$ 24.33$ 20.54$ FY 2020-21PROJECTIONSCity of Denton, Texas Water Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30 $35 $40Oct‐20 Nov‐20 Dec‐20 Jan‐21 Feb‐21 Mar‐21 Apr‐21 May‐21 Jun‐21Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsWater fees are projected lower than budget due to high rainfall totals.Personnel Services and operations are lower than projections.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.2The Beginning Working Capital balance excludes $14.79 M of Impact Fee Reserves and $1.00 million for Development Plan Line Reserves.05001,0001,5002,0002,5002014‐2021 Historical Quarterly Gallons Sold (in Millions)
FY 2020-21ANNUALYTDDESCRIPTION BUDGET 1 ACTUALS ANNUALVARIANCEBeginning Working Capital and Reserves as of 09/30/20215 .0 7$ 16.36$ 16.36$ RESOURCES: Wastewater Fees25.51 17.59 24.99 -2% Other Wastewater Revenue1.68 1.45 1.92 14% Drainage Fees5.10 3.87 5.34 5% Trans fe r In0.60 0.45 0.60 0% Impact Fee Revenue4.27 3.20 4.27 0%Total Revenues37.16 26.56 37.12 0%Total Resources52.23 42.92 53.48 EXPENDITURES: P ers o nnel Services8.42 6.21 8.42 0% Operations, Services9.27 5.90 8.79 -5% Capital Outlay6.77 3.42 6.50 -4% Debt Service6.77 6.30 7.04 4% Transfer Out5.64 4.13 5.67 1%Total Expenditures36.87 25.96 36.42 -1%Net Income (Loss)0.29 0.60 0.70 Ending Working Capital and Reserves 15.36$ 16.96$ 17.06$ FY 2020-21PROJECTIONSNote: All figures presented are in millions of dollars.City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30Oct‐20 Nov‐20 Dec‐20 Jan‐21 Feb‐21 Mar‐21 Apr‐21 May‐21 Jun‐21Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsWastewater fees are projected lower than budget due to a water reduction from more rainfall during this season.Other wastewater revenue is projected higher due to an increase in compost revenue sales.Operations and capital outlay are projected lower due to a reduction in maintenance and projects.1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.2The Beginning Working Capital balance excludes $8.23 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.94 million for Development Plan Line Reserves.02004006008001,0001,2001,4002014‐2021 Historical Quarterly Gallons Billed (in Millions)
FY 2020-21ANNUALYTDDESCRIPTIONBUDGET ACTUALS ANNUAL VARIANCEREVENUES: Residential Drainage Fees1.96$ 1.49$ 2.09$ 7% Nonresidential Drainage Fees3.14 2.37 3.26 4% Wastewater Resources- - - 0% General Fund Transfer0.36 0.27 0.36 0%Total Revenues5.46 4.13 5.71 5%EXPENDITURES: Personnel Service2.33 1.30 2.34 0% Operations, Services0.80 0.49 0.80 0% Capital Outlay1.65 0.05 1.89 15% Debt Service- - - 0% Transfer Out0.68 0.33 0.68 0%Total Expenditures5.46 2.17 5.71 5%Net Income (Loss)-$ 1.96$ -$ FY 2020-21PROJECTIONSNote: 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 $4.5Oct‐20 Nov‐20 Dec‐20 Jan‐21 Feb‐21 Mar‐21 Apr‐21 May‐21 Jun‐21Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsRevenues are projected higher due to development.Capital outlay is projected higher due to increased drainage improvements.
FY 2020-21FY 2020-21ANNUAL YTD PROJECTIONSDESCRIPTIONBUDGET 1ACTUALS ANNUAL VARIANCEBeginning Wo rking Capital and Reserves as of 09/30/20214 .2 0$ 11.06$ 11.06$ RESOURCES: Collection & Disposal 32.52 22.40 31.67 -3% Recycling 5.65 5.14 5.85 4% Other Revenue 1.65 0.38 1.03 -38%Total Revenues 39.82 27.92 38.55 -3%Total Resources 54.02 38.98 49.61 EXPENDITURES: P e rs o nne l S e rvic e 10.72 8.13 11.09 3% Operations, Services 9.75 5.61 8.63 -11% Capital Outlay 10.73 9.32 10.76 0% Debt Service 6.97 6.74 6.97 0% Landfill Clo s ure 0.70 0.53 0.70 0% Transfer Out 5.25 3.91 5.25 0%Total Expenditures 44.12 34.24 43.40 -2%Net Income (Loss) (4.30) (6.32) (4.85) Ending Working Capital and Reserves 9.90$ 4.74$ 6.21$ 01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0002019Qtr 42020Qtr 12020Qtr 22020Qtr 32020Qtr 42021Qtr12021Q22021Q3Refuse TonnageRecycling and ReuseTonnageResidential Curbside Collection TonnageNote: All figures presented are in millions of dollars.City of Denton, Texas Solid Waste Fund Executive DashboardKey TrendsRoll‐off revenue has been impacted by some illegal 3rdparty haulers and vehicle down time.Commercial recycling revenue is projected higher.Other revenue is projected lower due to expected revenue from asset sales.Operations, Service expense is lower than projected due to COVID savings and newer equipment that requires less maintenance.05,00010,00015,00020,00025,00030,0002019Qtr 42020Qtr 12020Qtr 22020Qtr 32020Qtr 42021Q12021Q22021Q3Commercial 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 2020‐21 budget process.2The Beginning Working Capital and Reserves excludes $11.4 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas Airport Fund Executive DashboardKey TrendsFuel Flowage Fees are greater than budget due to an unexpected increase in fuel sales.Operations services are projected lower due to the ongoing pandemic.Investment income is projected lower due to current interest rates.$0.0$1.0$2.0$3.0$4.0$5.02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing by fiscal year)Note: All financial amounts presented are in millions of dollars.FY 2020-21FY 2020-21ANNUAL YTDDESCRIPTIONBUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/20 2.90$ 2.97$ 2.97$ RESOURCES: Airport Ground Leases 0.79 0.62 0.79 0% FBO Co mmissions 0.16 0.15 0.21 31% Fuel Flowage Fees 0.10 0.08 0.11 10%Total Operating Revenues 1.05 0.84 1.11 6%EXPENDITURES: Personal Service 0.37 0.31 0.37 0% Operations, Services 0.39 0.13 0.18 -54% Transfer Out 0.45 0.34 0.40 -11%Total Operating Expenditures 1.21 0.78 0.95 -21%Net Operating Income (Loss) (0.16) 0.06 0.16 NON-OPERATING REVENUES: Investment Inco me 0.09 0.02 0.04 -56% Gas Well Royalties 0.21 0.20 0.24 14% Miscellaneos Inco me 0.00 0.00 0.00 0%Total Non-Operating Revenues 0.30 0.22 0.28 -7%NON-OPERATING EXPENDITURES: Debt Service 0.76 0.72 0.76 0% Transfer Out - Capital - - 0.05 0%Total Non-Operating Expenditures0.76 0.72 0.81 7%Net Non-Operating Income (Loss)(0.46) (0.50) (0.53) Net Income (Loss)(0.62) (0.44) (0.37) Ending Working Capital and Reserves 2.28$ 2.53$ 2.60$ PROJECTIONS1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2020‐21 budget process.
FY 2020-21ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Wo rking Capital and Reserves as of 09/30/20 3.97$ 4.50$ 4.50$ RESOURCES: Franchise Fees 13.63 9.08 13.64 0% Street Cuts 0.38 0.02 0.03 -92% Investment Income 0.05 0.02 0.04 -20% Transfers In 1.24 0.93 1.24 0%Total Revenues 15.30 10.05 14.95 -2%Total Resources 19.27 14.55 19.45 EXPENDITURES: Personal Service 3.31 2.24 3.31 0% Materials & Supplies 0.20 0.05 0.10 -50% Maintenance & Repairs 5.89 2.79 6.50 10% Operations, Services 1.08 0.45 0.84 -22% Transfer Out 1.59 0.69 0.95 -40% Capital Outlay 3.83 - 3.25 0%Total Expenditures15.90 6.22 14.95 -6%Net Income (Loss)(0.60) 3.83 (0.00) -3%Ending Fund Balance3.37$ 8.33$ 4.50$ FY 2020-21PROJECTIONS1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020-21 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsStreet Cuts projection has been reduced due to the utilities department completing own repairs.Lower than expected expenditures for YTD actuals due to the majority of the project in the summer months. Capital outlay was increased by $3,825,000 for additional 2019 bond segments.Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY19-20FY20-21020406080100Qtr 1Qtr 2Qtr 3Qtr 4Lane Miles Surface TreatmentFY 19-20FY20-21 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2020-21FY 2020-21GRANT YTDDESCRIPTIONAMOUNTACTUALS2020-21 Budget Comm Development 4.69$ 1.60$ Public Safety1.00 0.28 Transportation73.27 8.93 Other0.75 0.09 Total Budget79.71 10.90 New Awards Comm Development0.58 0.58 Public Safety0.28 0.28 Coronavirus Relief Fund (CRF) 2.82 2.82 Other 0.10 0.10 Total New Awards 3.78 3.78 Totals 83.49$ 14.68$ COMM DEV6.30%PUBLIC SAFETY1.55%TRANS87.75%CRF3.38%OTHER1.02%FY 2020‐21 Grants Awarded $‐ $20.0 $40.0 $60.0 $80.0COMMDEVPUBLICSAFETYTRANSCRFOTHERAwardsExpensesFY 2020‐21 Awards & Expenses (in Millions)City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.Key TrendsThe following grants have been received in FY 2020-21: Texas Emergency Rental Assistance Program: $168,488Emergency Solutions Grants Program: $406,733Federal Equitable Sharing: $63,050Chapter 59 Asset Forfeitures: $43,737U.S. Marshals Violent Offenders Task: $60,223North Texas Organized Crime Task Force: $5,722USSS' North Texas Financial Crimes Task Force: $1,590Urban Search & Rescue Response System: $85,441Texas Intrastate Fire Mutual Aid System: $22,795Coronavirus Relief Fund from Denton County: $2,823,227Survey:$112TDEM-COVID 19-Public Assistance Grant: $74,402Cultural District Grant Program: $12,000Humanities Texas Relief Grant: $2.766Texas State Library & Archives Commission-CARES-Cycle 2 Grant: $11,248
Section 2
City of Denton
Quarterly Financial Report
June 2021
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Current Year - Ad Valorem 47,908,948$ 47,179,552$ 48,776,573$ 47,701,547$ 49,190,115$ 3%
Delinquent - Ad Valorem 253,492 167,022 58,918 253,064 253,064$ 0%
Miscellaneous Penalties & Fees 341,088 300,584 231,369 384,411 384,411$ 0%
Ad Valorem Taxes 48,503,528 47,647,158 49,066,860 48,339,022 49,827,590 3%
Sales Tax 28,837,659 27,335,018 32,809,118 37,103,084 44,044,703 19%
Franchise - Gas Utilities 220,289 187,698 234,044 319,513 232,284 -27%
Franchise - Private Electric Utilities 50,486 25,341 44,111 100,655 89,466 -11%
Franchise - Cable 164,467 128,237 104,108 203,714 203,714 0%
Franchise - Telecom 62,450 14,276 26,919 69,623 69,623 0%
Franchise - Denton Municipal Utilities 2,558,245 2,048,403 2,252,725 3,305,429 2,959,342 -10%
Franchise Fees 3,055,937 2,403,955 2,661,907 3,998,934 3,554,429 -11%
Other Taxes 168,642 157,270 153,914 314,539 435,461 38%
Ambulance Service Fees 2,169,474 2,219,216 2,063,024 3,708,290 4,206,743 13%
Fire Department Fees 110,736 156,000 95,329 208,000 158,927 -24%
Building Inspections Fees 422,065 416,096 428,257 563,594 594,691 6%
Park Department Fees 227,981 1,320,765 852,713 1,355,231 1,269,167 -6%
Planning Department Fees 1,342,090 1,349,998 1,150,965 1,799,963 1,759,362 -2%
Reprographics Fees 85,380 - - - - 0%
Miscellaneous Service Fees 65,239 97,786 61,975 132,011 102,266 -23%
Service Fees 4,422,965 5,559,861 4,652,263 7,767,089 8,091,156 4%
Denton Municipal Fines 828,852 1,025,568 468,102 1,367,422 987,375 -28%
Parking Fines 121,225 197,223 23,755 262,964 137,301 -48%
Miscellaneous Fines and Fees 405,001 521,620 276,447 728,053 381,372 -48%
Court Administrative and Service Fees 568,027 846,221 381,468 1,176,378 734,337 -38%
Fines and Fees 1,923,105 2,590,632 1,149,772 3,534,817 2,240,385 -37%
Demolition Permits 8,699 11,063 10,035 14,750 14,750 0%
Building Permits 3,899,957 4,522,785 4,571,196 6,032,542 5,885,451 -2%
Certificate of Occupancy 35,223 39,120 35,365 52,159 52,159 0%
Miscellaneous Licenses and Permits 5,169 17,377 10,394 23,170 23,170 0%
Licenses and Permits 3,949,048 4,590,345 4,626,990 6,122,621 5,975,530 -2%
Investment Income 595,235 588,750 221,934 786,163 785,000 0%
Miscellaneous Revenues 1,248,932 3,707,742 1,845,114 4,784,157 6,149,146 29%
Miscellaneous Resources 1,844,167 4,296,492 2,067,048 5,570,320 6,934,146 24%
ROI - Denton Municipal Utilities 6,830,007 10,667,751 9,180,821 14,577,141 14,577,141 0%
Transfers 9,256,591 9,868,648 11,438,346 12,898,936 13,186,579 2%
Transfers 16,086,598 20,536,399 20,619,167 27,476,077 27,763,720 1%
Total General Fund Revenues 108,791,649$ 115,117,130$ 117,807,039$ 140,226,503$ 148,867,120$ 6%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
NEIGHBORHOOD SERVICES
Building Inspections 2,481,481$ 2,570,353$ 2,493,471$ 3,426,668$ 3,426,668$ 0%
Community Improvement Services 957,282 597,396 564,162 1,274,352 915,845 -28%
Libraries 4,409,124 4,747,055 4,610,325 6,328,528 5,995,949 -5%
Parks and Recreation 6,866,414 9,862,499 7,840,624 12,423,696 12,423,696 0%
Planning 2,766,963 1,641,928 1,421,019 2,188,930 2,188,940 0%
Development Services Admin - 1,022,443 874,062 1,363,071 1,363,071 0%
Gas Well Review 236,923 305,678 69,728 407,513 407,513 0%
Social Services 923,849 1,236,726 909,117 1,648,744 1,648,744 0%
18,642,036 21,984,078 18,782,508 29,061,502 28,370,426 -2%
PUBLIC SAFETY
Animal Services 1,625,778 1,779,762 1,850,089 2,372,691 2,289,721 -3%
Fire 24,664,970 24,880,026 25,972,668 33,211,574 32,845,175 -1%
Municipal Court 1,094,001 962,505 1,029,492 1,283,155 1,237,644 -4%
Municipal Judge 430,202 417,384 320,517 556,432 435,343 -22%
Police 29,438,085 32,362,024 31,343,727 43,143,530 42,224,987 -2%
57,253,036 60,401,701 60,516,493 80,567,382 79,032,870 -2%
TRANSPORTATION
Traffic Operations 1,578,315 1,844,493 1,344,237 2,458,979 2,458,979 0%
Street Lighting 613,414 637,585 677,541 850,000 850,000 0%
2,191,729 2,482,078 2,021,778 3,308,979 3,308,979 0%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 1,652,450 1,668,851 1,738,775 2,224,806 2,452,707 10%
Economic Development 2,437,934 2,510,454 2,601,014 3,346,794 3,346,794 0%
Finance 2,710,121 2,883,534 2,952,969 3,845,827 3,952,783 3%
Human Resources 1,707,879 1,773,148 1,849,294 2,363,870 2,363,870 0%
Internal Audit 386,188 405,736 371,137 540,902 530,651 -2%
Legal Administration 2,089,387 2,395,817 2,535,126 3,192,317 3,192,317 0%
Public Affairs 1,425,508 1,747,958 1,422,875 2,330,287 1,916,045 -18%
Non-Departmental 8,688,048 6,712,960 9,384,501 8,766,178 15,196,163 73%
21,097,515 20,098,458 22,855,691 26,610,981 32,951,330 24%
TOTAL EXPENDITURES 99,184,316$ 104,966,315$ 104,176,470$ 139,548,844$ 143,663,605$ 3%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2021
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 9/30/202 77,919,436$ 110,062,991$
REVENUES:
Rate Revenues 98,641,565$ 95,719,001$ 96,638,500$ 142,183,280 142,183,280 0%
Transmission Revenues 32,034,565 33,808,694 34,590,599 55,600,491 55,600,491 0%
Other Revenues 3,274,226 5,670,866 2,384,786 9,070,281 9,942,892 10%0%
DEC Revenues 7,568,590 15,699,187 130,689,166 24,545,418 137,158,304 459%
Total Revenues 141,518,946 150,897,748 264,303,051 231,399,470 344,884,967 49%
EXPENDITURES:
Purchased Power 38,810,182 146,288,463 287,398,192 3 210,841,730 150,117,912 -29%
DEC Fuel 2,048,738 8,583,427 25,747,384 12,475,775 39,160,000 214%
Transmission of Power 11,491,662 10,982,361 11,411,503 19,182,169 19,182,169 0%
Personnel Services 15,427,051 15,531,074 13,541,130 20,291,120 20,291,120 0%
Materials and Supplies 570,831 1,509,894 449,274 2,300,778 2,346,734 2%
Maintenance and Repair 475,512 1,061,300 639,959 1,543,565 1,518,749 -2%
Insurance 748,172 1,052,859 1,465,673 1,403,812 1,472,729 5%
Return on Investment Return on Investment5,277,189 7,944,474 7,657,679 11,898,075 11,898,075 0%
Franchise Fee Franchise Fee6,320,598 6,621,656 6,374,426 9,915,062 9,915,062 0%
Miscellaneous 1,488,529 641,187 534,812 753,500 763,673 1%
Operations 3,126,855 5,503,413 3,931,929 7,354,407 7,624,174 4%
Debt Service 47,247,510 47,758,697 47,758,697 55,503,322 55,503,322 0%
Interfund Transfers 11,620,585 12,862,770 12,470,130 17,150,359 16,760,360 -2%
Capital Outlay - 390,000 390,000 490,000 490,000 0%
Total Expenditures 144,653,414 266,731,575 419,770,788 371,103,674 337,044,079 -9%
Net Income (Loss)(3,134,468)$ (115,833,827)$ (155,467,737)$ (139,704,204) 7,840,888
Ending Working Capital and Reserves (61,784,768)$ 117,903,879$
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount
which was estimated in the FY 2020-21 budget process.
2 Beginning Working Capital and Reserves as of 9/30/20 increased by $8.87 million as a result of the change in
classification of purchased power escrow deposit accounts.
3 Purchased Power expenditures will be reduced by $140 million and covered by long-term debt to be issued in September.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/201 22,669,998$ 23,344,852$
REVENUES:
Water Sales Residential 13,119,920$ 15,424,444$ 12,851,079$ 20,563,184 20,160,324 -2%
Water Sales Commercial 11,815,200 13,243,225 11,194,927 17,655,278 17,309,387 -2%
Water for Resale 1,463,171 1,020,623 1,950,632 1,360,648 2,258,977 66%
Other Water 872,639 648,906 1,068,556 865,090 654,048 -24%
Transfers In 862,494 1,257,832 1,257,661 1,676,882 1,676,882 0%
Investment Income 247,601 220,529 84,512 294,000 106,994 -64%
Impact Fee Revenue 4,954,411 4,954,411 4,954,411 6,605,000 6,605,000 0%
Total Revenues 33,335,436 36,769,970 33,361,778 49,020,082 48,771,612 -1% Use of Reserves - - - -
EXPENDITURES:
Personnel Services 6,290,222 6,490,622 5,810,170 8,652,990 8,038,035 -7%
Purchased Power 922,617 1,058,234 950,171 1,410,789 1,289,463 -9%
Purchase of Water 1,408 2,250 1,615 3,000 1,800 -40%
Materials and Supplies 971,411 1,311,064 933,176 1,747,819 1,548,604 -11%
Maintenance and Repairs 1,179,475 1,369,366 1,200,170 1,804,365 1,601,132 -11%
Insurance 174,591 174,618 191,907 232,790 232,791 0%
Miscellaneous 151,213 260,876 181,177 342,784 347,784 1%
Operations, Services 1,136,156 1,742,564 866,712 2,349,270 2,110,272 -10%
Capital Outlay 9,149,019 12,533,501 5,467,789 16,709,105 16,709,105 0%
Return on Investment 908,029 1,039,090 882,316 1,385,269 1,385,269 0%
Franchise Fee 1,297,185 1,484,415 1,260,452 1,978,956 1,978,956 0%
Debt Service 12,321,016 10,515,401 10,515,401 11,064,205 11,064,205 0%
Transfers Out 3,623,562 3,947,682 4,121,567 5,262,865 5,262,863 0%
Total Expenditures 38,125,904 41,929,683 32,382,623 52,944,207 51,570,279 -3%
Net Income (Loss)(4,790,468)$ (5,159,713)$ 979,155$ (3,924,125) (2,798,667)
Ending Working Capital
and Reserves 18,745,873$ 20,546,185$
1 The Beginning Working Capital balance excludes $14,789,942 of Impact Fee Reserves and $1,000,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020-21
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/201 15,068,746$ 16,361,842$
REVENUES:
Residential Fees 8,544,750$ 9,185,860$ 8,461,040$ 11,583,683 11,351,051 -2%
Commercial Fees 8,601,412 9,735,756 8,506,659 13,130,746 12,867,043 -2%
Effluent Irrigation Fees 83,828 45,324 66,519 60,424 90,488 50%
Wholesale Fees 579,615 521,560 554,913 695,320 681,356 -2%
Other Wastewater Fees 1,443,986 1,093,678 1,393,558 1,519,240 1,853,139 22%
Drainage Fees 3,801,784 3,875,020 3,865,420 5,079,576 5,339,222 5%
Transfer In 440,921 449,799 449,739 599,652 599,652 0%
Investment Income 174,930 165,794 56,815 221,028 72,437 -67%
Impact Fee Reserves 3,202,927 3,202,927 3,202,927 4,270,000 4,270,000 0%
Total Revenues 26,874,153 28,275,718 26,557,590 37,159,670 37,124,388 0%
EXPENDITURES:
Personnel Services 6,627,969 6,316,635 6,210,078 8,421,033 8,416,565 0%
Purchased Power 782,496 915,872 742,970 1,221,000 1,221,000 0%
Materials and Supplies 699,835 911,941 830,450 1,215,708 1,215,063 0%
Maintenance and Repairs 669,980 1,271,269 1,119,769 1,694,791 1,693,892 0%
Insurance 199,307 199,341 202,339 265,744 265,743 0%
Miscellaneous 52,098 27,232 36,254 36,303 44,151 22%
Operations, Services 1,626,732 1,677,539 1,408,541 2,236,376 2,234,540 0%
Capital Outlay 3,723,089 5,146,187 3,419,488 6,492,128 6,492,128 0%
Return on Investment 644,789 802,039 640,826 1,069,241 871,481 -18%
Franchise Fee 921,127 1,145,769 915,465 1,527,487 1,244,973 -18%
Debt Service 7,162,859 6,296,161 6,296,161 7,043,462 7,043,462 0%
Transfers Out 3,654,831 4,233,507 4,133,933 5,643,911 5,674,881 1%
Total Expenditures 26,765,112 28,943,492 25,956,274 36,867,185 36,417,879 -1%
Net Income (Loss)109,041$ (667,774)$ 601,316$ 292,485 706,509
Ending Working Capital
and Reserves 15,361,231$ 17,068,351$
1 The Beginning Working Capital balance excludes $8,234,666 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $935,000 for Development Plan Line Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2020-21 budget process.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
REVENUES:
Residential Drainage Fees 1,457,071$ 1,457,810$ 1,500,066$ 1,954,169$ 2,083,992$ 7%
Nonresidential Drainage Fees 2,344,713 2,417,210 2,365,353 3,125,407 3,255,230 4%
Wastewater Resources - - - - - 0%
General Fund Transfer 264,671 270,000 269,964 359,952 359,952 0%
Total Revenues 4,066,455 4,145,020 4,135,383 5,439,528 5,699,174 5%
EXPENDITURES:
Personal Service 1,626,518 1,744,845 1,297,378 2,326,146 2,326,144 0%
Materials and Supplies 41,918 61,068 37,982 81,400 81,400 0%
Maintenance and Repairs 73,864 98,114 121,020 130,800 130,800 0%
Insurance 31,094 31,101 33,427 41,459 41,459 0%
Miscellaneous 8,375 12,677 3,430 16,900 16,900 0%
Operations, Services 408,414 395,387 294,857 73,190 73,190 0%
Capital Outlay 92,482 1,288,672 54,246 2,085,517 2,345,165 12%
Debt Service 453,451 - - - - 0%
Transfer Out 496,483 513,156 327,756 684,116 684,116 0%
Total Expenditures 3,232,599 4,145,020 2,170,096 5,439,528 5,699,174 5%
Net Income (Loss)833,856$ -$ 1,965,287$ -$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2021
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 09/30/201 14,201,069$ 11,059,601$
REVENUES:
Refuse Fees - Residential 3,849,623$ 3,992,401$ 3,438,009$ 5,357,173 5,405,039 1%
Refuse Fees - Commercial 10,389,363 12,341,304 10,854,778 16,714,384 14,658,447 -12%
Residential Recycling 4,071,442 3,583,705 4,185,245 4,777,635 4,618,273 -3%
Commercial Recycling 987,392 652,293 956,889 869,608 1,229,691 41%
Landfill Gate and Material Sales 6,403,341 7,726,134 8,098,837 10,447,397 11,601,868 11%
Recycled Material Sales 50,508 49,717 50,508 66,281 66,281 0%
Asset Sales and Interest Income 987,194 881,570 74,323 1,175,269 375,533 -68%
Other Revenue 435,184 307,849 258,044 410,404 590,451 44%
Total Revenues 27,174,047 29,534,973 27,916,633 39,818,151 38,545,583 -3%
EXPENDITURES:
Personnel Service 7,852,348 8,040,816 8,127,994 10,719,635 11,085,074 3%
Materials and Supplies 141,315 322,110 181,221 494,653 429,412 -13%
Maintenance and Repairs 166,488 169,912 145,980 226,516 226,516 0%
Insurance 194,738 217,983 221,014 291,624 291,624 0%
Miscellaneous 68,433 55,600 38,708 74,120 74,120 0%
Operations, Services 3,632,885 5,063,694 3,643,478 6,694,418 5,759,659 -14%
Capital Outlay 3,035,085 8,055,347 9,318,872 10,730,034 10,757,000 0%
Debt Service 8,158,892 6,744,553 6,744,656 6,968,199 6,968,199 0%
Franchise Fee 1,299,259 1,478,553 1,383,269 1,971,140 1,850,000 -6%
Transfers for Landfill Closure - 527,057 526,986 702,648 702,648 0%
Admin Transfers Out 3,343,878 3,938,621 3,907,527 5,250,784 5,250,784 0%
Total Expenditures 27,893,321 34,614,246 34,239,705 44,123,771 43,395,036 -2%
Net Income (Loss) (719,274)$ (5,079,273)$ (6,323,072)$ (4,305,620) (4,849,453)
Ending Working Capital
and Reserves 9,895,449$ 6,210,148$
1 The Beginning Working Capital Reserve excludes $11,400,638 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020-21 budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/20 2,900,353$ 2,974,184$
OPERATING REVENUES:
Airport Ground Leases 586,975$ 591,059$ 616,799$ 787,975 789,469 0%
FBO Commissions 116,495 121,138 145,135 161,495 208,000 29%
Miscellaneous 80,172 78,358 79,203 104,463 114,000 9%
Total Operating Revenues 783,642 790,555 841,137 1,053,933 1,111,469 5%
OPERATING EXPENDITURES:
Personal Service 334,116 275,420 311,262 367,173 367,652 0%
Materials and Supplies 14,802 26,096 5,664 34,790 5,664 -84%
Maintenance and Repairs 29,259 54,309 11,448 72,400 11,325 -84%
Insurance 18,282 19,963 19,960 26,613 26,134 -2%
Miscellaneous - 75 - 100 - -100%
Operations 95,078 195,713 97,367 260,905 140,101 -46%
Transfers Out - Operating 287,244 336,958 339,300 449,219 395,219 -12%
Total Operating Expenses 778,781 908,534 785,001 1,211,200 946,095 -22%
Operating (Loss)4,861 (117,979) 56,136 (157,267) 165,374
NON-OPERATING REVENUES:
Investment Income 65,913 63,945 24,135 85,248 40,800 -52%
Gas Well Royalties 108,155 157,386 195,820 209,821 239,000 14%
Gain/Loss on Sale of Fixed Assets 8,177 - - - - 0%
Total Non-Operating Revenues 182,245 221,331 219,955 295,069 279,800 -5%
NON-OPERATING EXPENDITURES:
Debt Service - 716,761 716,761 762,923 762,696 0%
Transfers Out - Capital 250,000 - - - 50,000 0%
Total Non-Operating Expenses 250,000 716,761 716,761 762,923 812,696 0%
Non-Operating Income (Loss)(67,755)(495,430)(496,806)(467,854)(532,896)
Net Income (Loss)(62,894)$ (613,409)$ (440,670)$ (625,121)(367,522)
Ending Working Capital 2,275,232$ 2,606,662$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2020-21 budget process.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2021
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Fund Balance
as of 9/30/2020 3,972,314$ 4,503,638$ RESOURCES:
Franchise Fees 8,696,195$ 10,227,380$ 9,075,988$ 13,634,688 13,634,688 0%
Street Cuts 229,245 284,176 24,873 378,851 33,164 -91%
Investment Income 43,361 33,755 24,494 45,000 41,000 -9%
Transfers In 1,003,235 932,982 933,187 1,243,811 1,243,811 0%
Miscellaneous - -
Total Resources 9,972,036 11,478,293 10,058,542 15,302,350 14,952,663 -2%
Total Resources 9,972,036 11,478,293 10,058,542 15,302,350 14,952,663 -2
EXPENDITURES:
Personnel Service 2,498,426 2,485,689 2,240,517 3,313,812 3,313,812 0%
Materials and Supplies 53,933 151,974 49,154 202,600 99,881 -51%
Maintenance and Repairs 3,945,777 7,729,783 2,790,111 5,888,000 6,500,000 10%
Insurance 70,734 65,318 65,309 87,078 87,078 0%
Miscellaneous 3,023 5,327 3,536 7,100 4,500 -37%
Operations, Services 442,233 756,739 385,175 1,008,847 748,087 -26%
Capital Outlay - - - 3,825,000 3,249,985 -15%
Transfer Out 984,534 727,087 690,200 1,561,320 949,320 -39%
Total Expenditures 7,998,660 11,921,917 6,224,002 15,893,757 14,952,663 -6%
Net Income (Loss)1,973,376$ (443,624)$ 3,834,540$ (591,407) -
Ending Fund Balance 3,380,907$ 4,503,638$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY
2020-21 budget process.
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended June 30, 2021
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20201
CURRENT
Y-T-D
ANNUAL
BUDGET
FY 2020-21 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)5,306,699$ 776,186$ 2,432,394$
US Dept of HUD -
Community Development Block Grant(CDBG)-
CARES ACT 304,649 618,736
US Dept of HUD -
HOME Investment Partnership Program 4,314,934 515,498 1,637,380
Community Development1 9,621,633 1,596,333 4,688,510
TxDot STEP Comprehensive Grant - 16,336 87,987
Victim Assistance Coordinator Grant - 73,920 89,040
National Sexual Assault Kit Initiative Grant - 27,323 499,890
2020 UASI-Specialized Regional Response Teams
Sustainment - 21,134 144,137
2020 SHSP-EOD X-Ray Equipment Enhancement - 46,488 46,500
Emergency Management Performance Grant - - 40,000
Staffing for Adequate Fire & Emergency Response
(SAFER) Grant - 17,719 20,000
Denton Police Department-Coronavirus Response
Grant - 78,230 82,398
Public Safety - 281,150 1,009,952
Airport Maintenance (RAMP) Grant - 24,785 50,000
TxDot-RTR-Mayhill Rd-IH35 E to US 380 46,536,358 956,092 17,834,724
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 22,784,688 3,458,861 25,590,473
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 53,865
TxDot-RTR-McKinney (Formerly FM426) 11,827,477 3,543,882 9,728,607
TxDot-RTR-Hickory Creek FM2181-FM2499 1,103,253 936,828 1,739,940
TxDot-RTR-North Texas Boulevard Roundabout 94,059 14,386 1,907,565
Bicycle & Pedestrian Projects Grant - - 1,500,000
NCTCOG-Waze Data Sharing - - 5,000
CMAQ-Congestion Mitigation & Air Quality
Improvement Program - - 11,060,800
STBG-Surface Transportation Block Grant - - 794,393
RTR-Roadway Utility-US 377-FM 1830 3,000,000 - 3,000,000
Transportation1 85,345,835 8,934,834 73,265,367
Interlibrary Loan Program (ILL) - - 33,552
TexTreasures Grant - 24,820 24,820
Special Projects Grant 45,912 54,058
TIFMAS Training Tuition Grant - 12,500
NCTCOG-Solid Waste Implementation Grants - 21,240 378,200
Miscellaneous New Grants - - 250,000
Other - 91,972 753,130
Total FY 2020-21 Budget 94,967,468 10,904,289 79,716,959
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended June 30, 2021
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20201
CURRENT
Y-T-D
ANNUAL
BUDGET
New Awards
Texas Emergency Rental Assistance Program-
CARES Act - 168,488 168,488
Emergency Solutions Grants Program-CARES Act - 406,733 406,733
Community Development - 575,221 575,221
Federal Equitable Sharing - 63,050 63,050
Chapter 59 Asset Forfeitures - 43,737 43,737
U.S. Marshals Violent Offenders Task Force - 60,223 60,223
North Texas Organized Crime Task Force
(NTOCTF)- 5,722 5,722
USSS' North Texas Financial Crimes Task Force 1,590 1,590
Urban Search & Rescue Response System (TEEX)- 85,441 85,441
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 22,795 22,795
Public Safety - 282,558 282,558
Coronavirus Relief Fund (CRF) from Denton County 4,802,113 2,823,227 2,823,227
Coronavirus Relief Fund (CRF)4,802,113 2,823,227 2,823,227
Survey - 112 112
Transportation - 112 112
Texas Department of Public Safety's Texas Division
of Emergency Management (TDEM)-COVID 19-
Public Assistance Grant - 74,402 74,402
Cultural District Grant Program - 12,000 12,000
Humanities Texas Relief Grant - 2,766 2,766
Texas State Library & Archives Commission-CARES-
Cycle 2 Grant - 11,248 11,248
Others - 100,416 100,416
Total New Awards 4,802,113 3,781,534 3,781,534
TOTALS 99,769,581$ 14,685,823$ 83,498,493$
1 A portion of the grants presented cover multiple years.
Section 3
City of Denton
Quarterly Financial Report
June 2021
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 June 30, 2021
Gross Domestic Product (GDP)
Second quarter GDP disappointed with a Q-o-Q annualized growth rate of +6.5%, well below the +8.5% forecast. However,
housing, business inventories and government spending combined shaved nearly two percentage points off the
headline. If lingering supply chain issues and labor and materials shortages weren’t so prevalent, the overall number would
have likely met or exceeded forecasts. Inventories are lean and will eventually be restocked. If demand remains brisk, growth in the next several quarters could get a boost. Personal consumption (the biggest contributor to overall GDP) exceeded forecasts with a huge +11.8% gain. An elevated savings rate and record household net worth indicate capacity for this strong consumer spending to continue.
Employment
With tens of millions of Americans receiving federal or state jobless benefits, workers have been slow to fill open positions. The June labor report showed improvement with +850k jobs added to U.S. company payrolls. It was the biggest monthly increase since last August and followed a +583k gain in May. The bulk of June payroll gains were concentered in
leisure and hospitality (+343k) with more than half of these in food services and drinking establishments. The headline
unemployment rate actually climbed a notch from +5.8% to +5.9% in June, although this is more indicative of an increase in the number of Americans resuming their job searches rather than deteriorating labor conditions.
Inflation
Inflation has arrived. The headline consumer price index (CPI) almost doubled expectations, rising by +0.9% in June, the
largest increase in 13 years. Core CPI, which excludes food and energy, was also up +0.9%. On a year-over-year basis,
headline CPI was advancing at a +5.4% pace in June, while core CPI rose +4.5%, the largest 12-month rise since 1991. The
Fed’s preferred measure, core Personal Consumption Expenditures (PCE), was up +3.5% year-over-year in June, the highest in
30 years. Fed officials believe the price spike will be temporary. Base effects do account for some of the annual change, but the monthly gains continue to be driven by transportation, supply bottlenecks, and
other reopening-related factors, all fall outside the transitory claim and could continue for months.
Retail Sales
Retail sales climbed +0.6% in June to $621.3 billion, +18.2% above pre-
pandemic levels. Analysts had speculated that in the absence of additional government stimulus checks and with
federal unemployment benefits expiring, spending would slow. This was indeed the case in May as headline sales dropped by
a revised -1.7%; however, Americans were clearly in the mood to spend some of their cash in June. The monthly retail sales report focuses almost entirely on goods, with the only service component being restaurant and bar sales which rose +2.3%. Clothing sales were up +2.6%, reflecting a gradual return to the traditional office. This category is likely to rise further in July and August as students prepare to return to the classroom.
Denton County and Texas Home Sales
Texas home sales rose +41.9% in the second quarter and +16.6% over the same three-month period a year ago. The average sales price in June was $389k, the highest on record and more than $77k above the same period last year. The available inventory was just 1.6 months at the end of the quarter, a welcomed increase from the previous quarter when the inventory (at 1.3 months) was at the lowest level since the data series began in 1990, and a fraction of the 3.8 month supply from two years earlier.
In Denton County, unit home sales climbed +32.9% in the second quarter and +12% year-over-year.
The only period in which more home sales were tallied was the third quarter of 2020. The average sales price in June was $482k, the highest on record for any given month as homebuyers bid up scarce properties. On a year-over-year basis, the average home price rose by +$112k, or more than +30% in Denton County. Home listings totaled 1,432 in June, up from 1,173 in March, but well below the
3,142 total from a year earlier. The available inventory was 1.0 months in June, compared to a record low of 0.7 in February and a 2.4 month supply in the same period a year ago.
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 Positive
Description: Quarterly fuel trends for the United States and Texas.
Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of
fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a
key predictor of sales tax collections. Fuel prices showed a 16.1% increase from the prior quarter at the national
level and a 32.8% increase at the state level. Staff has rated this outlook as Positive.
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
2Q '17 4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20 2Q '21 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 3rd Quarter of 2020‐21 shows an increase of 9.6 for a 3.64% increase over the prior quarter and an
increase of 21.1 for a 8.36% increase over the 3rd Quarter of 2019‐20. 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
240.00
245.00
250.00
255.00
260.00
265.00
270.00
275.00
3Q '19 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
3rd Quarter FY 2020‐21
Actual Y‐T‐D
Occupancy Tax Revenue:756,417$ 1,743,508$
FY 2020‐21 Budget 398,845$ 1,986,348$
Over (Under) Budget 357,572$ (242,840)$
Hotel Occupancy Tax Budget:2,555,264$
2,555,264$
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 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 3rd Quarter of FY 2021 was 89.65% more than budget and 56% more than the
prior year's actual. Hotel receipts increased with the state's gradual reopening post COIVD‐19. 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
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2017‐18 FY 2018‐19 FY 2019‐20 FY 2020‐21
Sales and Use Tax Analysis Outlook Positive
3rd Quarter FY 2020-21
Actual Y-T-D
Revenue: Gross Sales Tax
Municipal Operations 424,454$ 1,290,785$
General Retail & Others 11,625,208 32,792,722
Comptroller Fees (227,986) (643,429)
Amount Retained (223,426) (630,561)
Total Revenue 11,598,250$ $32,809,517
Expenses: Economic Incentives*
Economic Incentives1 513,437$ 1,723,813$
Net Total 11,084,813 31,085,704
FY 2020-21 Budget 8,801,733 26,045,919
Over(Under) Budget 2,283,080$ 5,039,785$
Sales Tax Budget:37,103,084$
Year End Projection:44,044,703
Variance to Original Budget:6,941,619$
Economic Development Expenditure Budget:1,698,075$
Year End Projection:2,168,221
Year End Final:
Variance to Original Budget:470,146$
* Economic Incentive actuals are through June 2021.
1. Includes Unicorn Lake, Rayzor Ranch, Golden Triangle Mall, O'Reilly Hospitality, and Buc-ee's.
Description:Tax imposed on all retail sales, leases, and rentals of most goods,as well as taxable services. The total tax
rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 3rd quarter of FY 2021 compared to revenues from
the prior year 3rd quarter shows a 23.52% increase, and compared to the budget it is 25.94% above. Staff has rated this
indicator as Positive.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
1 2 3 4
Gross Sales Tax Collections (Millions)
FY 2017-18 Actual FY 2018-19 Actual FY 2019-20 Actual FY 2020-21 Actual
Certificates of Occupancy Outlook Positive
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 80.77% from the prior quarter and increased 120.31%
from the 3rd Quarter of 2020. Staff has rated the outlook for this revenue indicator as Positive.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
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
1Q
'21
2Q
'21
3Q
'21
Certificates of Occupancy
Residential Permits Outlook Positive
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy. In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased 7.86% from the prior quarter and increased 40.47% from the 3rd
Quarter of 2020. Staff has rated the outlook for this revenue indicator as Positive.
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
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
1Q
'21
2Q
'21
3Q
'21
Residential Permits
Texas Leading Indicators Index Outlook Positive
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help‐Wanted Advertising, and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows an increase in the state's rate of growth. The index increased 6.79% from the prior quarter and
increased 24.41% from the 3rd Quarter of 2020. 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
3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18 1Q '19 3Q '19 1Q '20 3Q '20 1Q '21 3Q '21
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 5.1% for the 3rd Quarter.
Since this is a decrease over the prior year's quarter rate, 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
3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18 1Q '19 3Q '19 1Q '20 3Q '20 1Q '21 3Q '21
Unemployment Rate Index
Dallas‐Plano‐Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
June 2021
INVESTMENT REPORT
3rd Fiscal Quarter Ending June 30, 2021 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max.Benchmark
Portfolio:Value Value Value Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 544,831,766$ 546,469,950$ 545,406,594$ 1,063,356$ 85 550 0.38%0.07%
*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)2 Max.
U.S. Treasuries 89,000,000$ 89,344,640$ 89,268,528$ 76,112$ 105 0.78%16.37% 100.00%
U.S. Federal Agencies 112,500,000$ 113,742,774$ 112,761,592$ 981,182$ 274 1.07%20.67% 100.00%
Municipal Bonds 10,000,000$ 10,060,000$ 10,058,018$ 1,982$ 56 0.21%1.84% 15.00%
Certificates of Deposit -$ -$ -$ -$ 0 0.00%0.00% 35.00%
Commercial Paper 75,000,000$ 74,990,770$ 74,986,690$ 4,080$ 72 0.11%13.75% 15.00%
Local Government Investment Pools 230,478,678$ 230,478,678$ 230,478,678$ -$ 1 0.01%42.26% 50.00%
Demand Deposits 27,853,088$ 27,853,088$ 27,853,088$ -$ 1 0.25%5.11%-
Total Portfolio 544,831,766$ 546,469,950$ 545,406,594$ 1,063,356$ 85 0.38%100.00%-
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons:6/30/2021 3/31/2021 Difference 6/30/2020
Par Value 544,831,766$ 515,057,521$ 29,774,245$ 523,113,175$
Market Value 546,469,950$ 517,480,103$ 28,989,847$ 529,289,987$
Book Value 545,406,594$ 515,885,330$ 29,521,264$ 524,669,650$
Unrealized Gain(Loss)1,063,356$ 1,594,773$ (531,417)$ 4,620,337$
Weighted Average Maturity 85 98 (13) 245
Yield to Maturity 0.38%0.45%-0.07%1.31%
Portfolio Composition:
U.S. Treasuries 16.37%13.43%2.94%28.47%
U.S. Federal Agencies 20.67%23.82%-3.15%42.38%
Municipal Bonds 1.84%1.97%-0.12%0.80%
Certificates of Deposit 0.00%0.00%0.00%0.00%
Commercial Paper 13.75%6.78%6.97%8.56%
Local Government Investment Pools 42.26%52.43%-10.17%19.22%
Demand Deposits 5.11%1.57%3.54%0.57%
Bank Collateral Review**:Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 98,646,002$ 27,853,088$ > 102%354.17%
**Does not include FDIC insurance
Depository Ledger Balance Review:Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 39,506,050$ 82,170,833$ 16,207,869$
Wells Fargo Bank CRF/ARPA Funds 111$ 11,645,219$ 11,645,219$
Compliance Statement & Review:
105,469,015$
Assistant Director of Finance
Reviewer: Nicholas Vincent
Chief Financial Officer Director of Finance
Approver: Cassandra Ogden
Reviewer: Randee Klingele
Treasury Manager
Preparer: Matt Hamilton
Treasury Analyst
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 thePublic Funds Investment Act (Texas Government Code, Chapter 2256.023).
Approver: David Gaines
-21.71%
0.00%
4.54%
Pledge Required
5.18%
23.04%
111$
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
21,718,591$
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.
(160)
-0.93%
1.05%
17,179,963$
20,736,944$
(3,556,981)$
-12.10%
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
3rd Fiscal Quarter Ending June 30, 2021 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
6/30/2021 3/31/2021 Difference 6/30/2020 Difference
Par Value - U.S. Treasuries 89,000,000$ 69,000,000$ 20,000,000$ 149,000,000$ (60,000,000)$
Par Value - U.S. Federal Agencies 112,500,000 122,500,000 (10,000,000) 221,281,000 (108,781,000)
Par Value - Municipal Bonds 10,000,000 10,000,000 - 4,000,000 6,000,000
Certificates of Deposit - - - -
Par Value - Commercial Paper 75,000,000 35,000,000 40,000,000 45,000,000 30,000,000
Local Government Investment Pools 230,478,678 270,478,678 (40,000,000) 100,855,390 129,623,288
Demand Deposits 27,853,088 8,078,843 19,774,245 2,976,785 24,876,303
Total Par Value 544,831,766$ 515,057,521$ 29,774,245$ 523,113,175$ 21,718,591$
Market Value - U.S. Treasuries 89,344,640$ 69,580,654$ 19,763,986$ 151,048,888$ (61,704,248)$
Market Value - U.S. Federal Agencies 113,742,774 124,192,383 (10,449,609) 225,243,610 (111,500,836)
Market Value - Municipal Bonds 10,060,000 10,157,400 (97,400) 4,171,929 5,888,071
Certificates of Deposit - - - -
Market Value - Commercial Paper 74,990,770 34,992,145 39,998,625 44,993,385 29,997,385
Local Government Investment Pools 230,478,678 270,478,678 (40,000,000) 100,855,390 129,623,288
Demand Deposits 27,853,088 8,078,843 19,774,245 2,976,785 24,876,303
Total Market Value 546,469,950$ 517,480,103$ 28,989,847$ 529,289,987$ 17,179,963$
Book Value - U.S. Treasuries 89,268,528$ 69,292,346$ 19,976,182$ 149,366,856$ (60,098,327.88)$
Book Value - U.S. Federal Agencies 112,761,592 122,895,938 (10,134,345) 222,362,573 (109,600,981)
Book Value - Municipal Bonds 10,058,018 10,152,297 (94,279) 4,172,413 5,885,605
Certificates of Deposit - - - -
Book Value - Commercial Paper 74,986,690 34,987,228 39,999,462 44,935,633 30,051,057
Local Government Investment Pools 230,478,678 270,478,678 (40,000,000) 100,855,390 129,623,288
Demand Deposits 27,853,088 8,078,843 19,774,245 2,976,785 24,876,303
Total Book Value 545,406,594$ 515,885,330$ 29,521,264$ 524,669,650$ 20,736,944$
Accrued Interest 1,256,967$ 1,075,241$ 181,726$ 2,283,427$ (1,026,461)$
Cash Value -547,726,917$ 518,555,344$ 29,171,573$ 531,573,414$ 16,153,502$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)1,063,356$ 2,388,314$ (1,324,957)$ 3,419,737$ (2,356,381)$
Strategy Statement: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 meet anticipated daily cash needs
for the City's operations, capital projects and debt service. In order to meet these obligations and to minimize potential liquidation losses, the dollar-
weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The objectives of this portfolio are to: (1) ensure
safety of principal by investing in only high quality securities for which a strong secondary market exists; (2) ensure that anticipated cash flow needs
are matched with adequate investment liquidity; (3) limit market and credit risk through diversification; and (4) 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.
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
3rd Fiscal Quarter Ending June 30, 2021 Page 3
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Security Type:6/30/2021 3/31/2021 6/30/2020
U.S. Treasuries 89,268,528$ 69,292,346$ 149,366,856$
U.S. Federal Agencies 112,761,592 122,895,938 212,606,573
U.S. Federal Agencies - Callable - - 9,756,000
Municipal Bonds 10,058,018 10,152,297 4,172,413
Certificates of Deposit - - -
Commercial Paper 74,986,690 34,987,228 44,935,633
Local Government Investment Pools 230,478,678 270,478,678 100,855,390
Demand Deposits 27,853,088 8,078,843 2,976,785
Total Book Value 545,406,594$ 515,885,330$ 524,669,650$
2976785
552720901.1
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type:6/30/2021 3/31/2021 6/30/2020
U.S. Treasuries 16.37%13.43%28.47%
U.S. Federal Agencies 20.67%23.82%40.52%
U.S. Federal Agencies - Callable 0.00%0.00%1.86%
Municipal Bonds 1.84%1.97%0.80%
Certificates of Deposit 0.00%0.00%0.00%
Commercial Paper 13.75%6.78%8.56%
Local Government Investment Pools 42.26%52.43%19.22%
Demand Deposits 5.11%1.57%0.57%
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
16.37%
U.S. Federal Agencies
20.67%
Municipal Bonds
1.84%
Commercial Paper
13.75%
Local Government Investment Pools
42.26%Demand Deposits5.11%
Current
6/30/2021
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
3rd Fiscal Quarter Ending June 30, 2021 Page 4
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Issuer:6/30/2021 3/31/2021 6/30/2020
AUSTIN TEXAS -$ -$ -$
BAYLOR SCOTT 9,998,889 9,998,094 9,998,500
CORNELL UNIVERSITY - - -
DARTMOUTH COLLEGE - 9,995,508 -
FFCB 72,508,461 62,515,199 87,565,946.00
FHLB 25,187,744 35,275,353 79,551,502.00
FHLMC 4,999,102 4,998,862 19,998,010.00
FNMA 10,066,285 20,106,524 35,247,115.00
JP MORGAN SECURITIES LLC - - 9,966,011.00
JOHNS HOPKINS UNIVERSITY 9,999,645 - -
PRINCETON UNIVERSITY - -
PLANO ISD-BLDG - - 4,172,413
RBC 9,990,036 4,999,103 4,972,089.00
STATE OF CALIFORNIA 20,000,000 - 5,000,000.00
STATE OF TEXAS 10,058,018 10,152,297 -
TEXPOOL 115,000,000 115,000,000 25,000,000.00
TEXSTAR 115,478,678 155,478,678 75,855,390.00
TOYOTA MOTOR CREDIT CORP 9,998,819 9,994,522 4,999,033.00
U.S. TREASURY 89,268,528 69,292,346 149,366,856.00
UNIVERSITY OF NORTH CAROLINA - - 10,000,000.00
UNIVERSITY OF TEXAS 14,999,300 - -
WELLS FARGO DEMAND DEPOSITS 27,853,088 8,078,843 2,976,785.00
Total Book Value 545,406,594$ 515,885,330$ 524,669,650$
Current 3 Months Ago 1 Year Ago
Summary By Issuer:6/30/2021 3/31/2021 6/30/2020
AUSTIN TEXAS 0.00%0.00%0.00%
BAYLOR SCOTT 1.83%1.94%1.91%
CORNELL UNIVERSITY 0.00%0.00%0.00%
DARTMOUTH COLLEGE 0.00%1.94%0.00%
FFCB 13.29%12.12%16.69%
FHLB 4.62%6.84%15.16%
FHLMC 0.92%0.97%3.81%
FNMA 1.85%3.90%6.72%
JP MORGAN SECURITIES LLC 0.00%0.00%1.90%
JOHNS HOPKINS UNIVERSITY 1.83%0.00%0.00%
PRINCETON UNIVERSITY 0.00%0.00%0.00%
PLANO ISD-BLDG 0.00%0.00%0.80%
RBC 1.83%0.97%0.95%
STATE OF CALIFORNIA 3.67%0.00%0.95%
STATE OF TEXAS 1.84%1.97%0.00%
TEXPOOL 21.09%22.29%4.76%
TEXSTAR 21.17%30.14%14.46%
TOYOTA MOTOR CREDIT CORP 1.83%1.94%0.95%
U.S. TREASURY 16.37%13.43%28.47%
UNIVERSITY OF NORTH CAROLINA 0.00%0.00%1.91%
INIVERSITY OF TEXAS 2.75%0.00%0.00%
WELLS FARGO DEMAND DEPOSITS 5.11%1.57%0.57%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1.83%
13.29%
4.62%
0.92%
1.85%1.83%1.83%3.67%1.84%
21.09%
21.17%
1.83%16.37%
2.75%
5.11%
Current
6/30/2021
BAYLOR SCOTT
FFCB
FHLB
FHLMC
FNMA
JOHNS HOPKINS UNIVERSITY
RBC
STATE OF CALIFORNIA
STATE OF TEXAS
TEXPOOL
TEXSTAR
TOYOTA MOTOR CREDIT CORP
U.S. TREASURY
UNIVERSITY OF TEXAS
WELLS FARGO DEMAND DEPOSITS
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
3rd Fiscal Quarter Ending June 30, 2021 Page 5
INVESTMENT POOL
(Based on Par Value)
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:6/30/2021 3/31/2021 6/30/2020
00-03 Months 388,331,766$ 333,557,521$ 193,588,175$
03-06 Months 66,500,000 75,000,000 35,000,000
06-12 Months 50,000,000 76,500,000 143,025,000
12-24 Months 30,000,000 20,000,000 131,500,000
24 Months & Over 10,000,000 10,000,000 20,000,000
Total Par Value 544,831,766$ 515,057,521$ 523,113,175$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:6/30/2021 3/31/2021 6/30/2020
00-03 Months 71.28%64.76%37.01%
03-06 Months 12.21%14.56%6.69%
06-12 Months 9.18%14.85%27.34%
12-24 Months 5.51%3.88%25.14%
24 Months & Over 1.84%1.94%3.82%
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
$600,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
3rd Fiscal Quarter Ending June 30, 2021 Page 6
ECONOMIC SUMMARY
Interest Rate History
Source: U.S. Federal Reserve Statistical
Release (H.15)
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)0.24% 0.36% 0.38% 0.40% 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90% 2.15%
3-Month U.S. T-Bill 0.23% 0.30% 0.27% 0.29% 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92% 2.20%
2-Year U.S. T-Note 0.98% 0.88% 0.73% 0.77% 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53% 2.57%
Portfolio Benchmark*0.32% 0.41% 0.49% 0.54% 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75% 2.05%
Portfolio Yield 0.72% 0.79% 0.81% 0.90% 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73%
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)2.40% 2.41% 2.37% 1.90% 1.56% 0.02% 0.08% 0.09% 0.08% 0.06% 0.05%
3-Month U.S. T-Bill 2.36% 2.39% 2.09% 1.82% 1.55% 0.09% 0.14% 0.10% 0.07% 0.02% 0.04%
2-Year U.S. T-Note 2.49% 2.26% 2.10% 1.76% 1.57% 0.25% 0.15% 0.13% 0.12% 0.15% 0.25%
Portfolio Benchmark*2.33% 2.48% 2.00% 1.80% 1.55% 0.33% 0.18% 0.13% 0.12% 0.08% 0.07%
Portfolio Yield 2.01% 2.20% 2.20% 2.08% 1.96% 1.62% 1.31% 0.94% 0.80% 0.45% 0.38%
*Twelve month moving average of a
one year U.S. T-bill yield
Fiscal Year:
2020-2021
2019-2020
2018-2019
2017-2018
2016-2017
QUARTERLY COMMENTARY
6/30/2021
2,955,835$ 12,354,692$
1,325,472$ 2,332,128$ 2,937,508$
6,122,536$ 9,262,499$
2,982,157$
1st Quarter
Fiscal Year 2018-2019 Fiscal Year 2020-2021
2,138,420$ 4,317,890$
Source: Hilltop Securities Asset
Management Economic Summary
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2015-2016 Fiscal Year 2016-2017 Fiscal Year 2017-2018
Fiscal Year-to-Date Earnings
3 Months 6 Months 9 Months 12 Months
1,175,753$
The portfolio is in compliance with the City's Investment Policy. During the third quarter, six investments matured totaling $55
million and nine investments were purchased totaling $105 million.The portfolio's weighted average yield remains higher than the
benchmark 12-month Treasury bill index by 31 basis points. During the June 16th FOMC meeting committee members started
discussing the appropriateness of scaling back QE asset purchases. There was no action plan and no specific dates mentioned.
Committee members would like to see the broad economy achieve “substantial further progress” before actual tapering begins.
On the whole, inflationary pressure is still seen as temporary. Economists expect the annual inflation rate to fall back below 2.0%
next year before climbing back toward the target. Investments and deposits with daily liquidity was 47.41%. Staff will continue to
monitor the investment portfolio and ensure compliance with the City's Investment Policy and the Public Funds Investment Act.
Staff will continue to monitor the investment portfolio and ensure compliance with the City's Investment Policy and the Public
Funds Investment Act.
Fiscal Year 2019-2020
4,734,315$ 2,763,135$
7,751,129$ 7,751,129$ 5,750,008$
6,515,166$ 8,955,045$
6,999,226$
2nd Quarter 3rd Quarter 4th Quarter
0.00%
1.00%
2.00%
3.00%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2015-16 FY 2016-17 FY 2017-18 FY 2019-20 FY 2020-21FY 2018-19
DocuSign Envelope ID: B45FDDAF-DCAA-4FEB-84EB-4465538893B9
Days to
Maturity
Page 1
Par Value Book Value Maturity
Date
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Denton
YTM
365CUSIPInvestment #Purchase
Date
Treasury Discounts -Amortizing
42TREASURY BILL4094 10,000,000.00 9,999,008.33 08/12/202112/29/2020 9,999,390.00 0.0879127964B2
84TREASURY BILL4098 10,000,000.00 9,999,491.34 09/23/202104/26/2021 9,998,890.00 0.022912796F53
112TREASURY BILL4099 10,000,000.00 9,999,010.67 10/21/202104/26/2021 9,998,600.00 0.033912796G60
29,997,510.34 0.04829,996,880.0030,000,000.0029,996,952.09Subtotal and Average 79
Treasury Securities - Coupon
14U.S. TREASURY4040 10,000,000.00 10,003,417.97 07/15/20212.62509/12/2019 10,009,980.00 1.715912828Y20
45U.S. TREASURY4043 10,000,000.00 10,004,054.55 08/15/20212.12509/17/2019 10,025,850.00 1.788912828RC6
14U.S. TREASURY4047 5,000,000.00 5,001,787.86 07/15/20212.62511/25/2019 5,004,990.00 1.675912828Y20
61U.S. TREASURY4048 5,000,000.00 4,995,585.33 08/31/20211.12511/25/2019 5,008,950.00 1.6649128282F6
106U.S. TREASURY4049 4,000,000.00 4,013,898.10 10/15/20212.87511/25/2019 4,032,660.00 1.6539128285F3
76U.S. TREASURY4053 5,000,000.00 5,011,928.01 09/15/20212.75001/08/2020 5,027,820.00 1.5819128285A4
106U.S. TREASURY4095 10,000,000.00 10,080,562.16 10/15/20212.87501/12/2021 10,081,650.00 0.0979128285F3
410U.S. TREASURY4105 10,000,000.00 10,159,783.80 08/15/20221.50006/11/2021 10,155,860.00 0.078912828YA2
59,271,017.78 1.14859,347,760.0059,000,000.0065,571,867.43Subtotal and Average 118
Federal Agency Issues - Coupon
137FFCB40067,500,000.00 7,505,573.79 11/15/20213.05012/12/2018 7,582,775.55 2.8403133EJT74
781FFCB401310,000,000.00 9,999,572.22 08/21/20232.57002/21/2019 10,482,069.20 2.5723133EKAU0
243FFCB401510,000,000.00 9,999,672.10 03/01/20222.55003/01/2019 10,164,683.30 2.5553133EKBV7
165FFCB405410,000,000.00 10,000,326.33 12/13/20211.58001/08/2020 10,067,461.50 1.5723133ELDU5
204FFCB405610,000,000.00 10,008,619.72 01/21/20221.60001/31/2020 10,084,527.40 1.4423133ELHR8
42FFCB407210,000,000.00 9,999,917.63 08/12/20210.16005/14/2020 10,001,264.90 0.1673133ELZE7
321FFCB40765,000,000.00 4,995,378.94 05/18/20220.16005/28/2020 5,003,268.90 0.2653133ELZN7
442FFCB410610,000,000.00 9,999,400.67 09/16/20220.08006/16/2021 9,994,194.20 0.0853133EMK68
369FHLB406710,000,000.00 10,127,026.78 07/05/20221.95503/16/2020 10,180,531.80 0.0693130ABCY0
92FHLB40685,000,000.00 5,000,000.00 10/01/20210.32004/02/2020 5,003,121.25 0.3203130AJGL7
172FHLB407010,000,000.00 10,060,716.89 12/20/20211.62504/16/2020 10,073,612.10 0.3273130AHSR5
342FHLMC40785,000,000.00 4,999,101.96 06/08/20220.25006/15/2020 5,007,238.15 0.2693134GVJ66
188FNMA406610,000,000.00 10,066,285.36 01/05/20222.00003/16/2020 10,098,025.80 0.6933135G0S38
112,761,592.39 1.069113,742,774.05112,500,000.00111,112,175.42Subtotal and Average 274
Municipal Bonds - Coupon
56TEXAS STATE GENERAL OBLIGATION4083 10,000,000.00 10,058,017.88 08/26/20214.00009/02/2020 10,060,000.00 0.211882724SY4
10,058,017.88 0.21110,060,000.0010,000,000.0010,073,040.36Subtotal and Average 56
Portfolio CITY
APRun Date: 07/22/2021 - 13:08 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
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Denton
YTM
365CUSIPInvestment #Purchase
Date
Commercial Paper Disc. - Amortizing
40BAYLOR SCOTT4102 10,000,000.00 9,998,888.89 08/10/202105/20/2021 9,998,750.00 0.10107287CVA7
211RBC410010,000,000.00 9,990,036.11 01/28/202205/05/2021 9,991,700.00 0.17578009BAU6
25TOYOTA MOTOR CREDIT4096 10,000,000.00 9,998,819.44 07/26/202101/27/2021 9,999,520.00 0.17389233GUS3
42UNIVERSITY OF TEXAS CP4103 15,000,000.00 14,999,300.00 08/12/202106/04/2021 15,000,000.00 0.04191512BVC6
44,987,044.44 0.11344,989,970.0045,000,000.0048,818,247.22Subtotal and Average 75
Commercial Paper - Interest Bearing
48State of California4101 20,000,000.00 20,000,000.00 08/18/20210.11005/20/2021 20,000,800.00 0.11013068FBS6
20,000,000.00 0.11020,000,800.0020,000,000.0020,000,000.00Subtotal and Average 48
Commercial Paper - Cpn at Disc/Prem
110JOHNS HOPKINS UNIV CP4107 10,000,000.00 9,999,645.16 10/19/20210.07006/17/2021 10,000,000.00 0.08347803LLX9
9,999,645.16 0.08310,000,000.0010,000,000.004,666,491.29Subtotal and Average 110
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXPOOL3996 115,000,000.00 115,000,000.00 0.013115,000,000.00 0.013SYS3996
1LOCAL GOVT INV POOL - TEXSTAR3641 115,478,677.80 115,478,677.80 0.010115,478,677.80 0.010SYS3641
230,478,677.80 0.011230,478,677.80230,478,677.80235,812,011.13Subtotal and Average 1
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 16,207,868.94 16,207,868.94 0.25016,207,868.94 0.250SYS3706
1DEMAND DEPOSITS - WELLS FARGO4082 0.00 0.000.00 0.000SYS4082
1DEMAND DEPOSITS - WELLS FARGO4104 11,645,219.00 11,645,219.00 0.17006/01/2021 11,645,219.00 0.170SYS4104
27,853,087.94 0.21727,853,087.9427,853,087.9429,744,722.84Subtotal and Average 1
0.383555,795,507.79 544,831,765.74 85546,469,949.79 545,406,593.73Total and Average
Portfolio CITY
APRun Date: 07/22/2021 - 13:08 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 3
Par Value Book Value Stated
RateMarket Value
June 30, 2021
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
City of Denton
YTM
365CUSIPInvestment #Purchase
Date
0.00
0.383555,795,507.79 544,831,765.74 85
0Average Balance
546,469,949.79 545,406,593.73Total Cash and Investments
Portfolio CITY
APRun Date: 07/22/2021 - 13:08 PM (PRF_PM2) 7.3.0