2022-001 Q4 FY 20-21 ReportDate: January 7, 2022 Report No. 2022-001
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2021.
BACKGROUND: Attached for your review is the Quarterly Financial Report for the period ending September 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
Date: December 29, 2021
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2021.
BACKGROUND:
Attached for your review is the Quarterly Financial Report for the period ending September 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 September 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 preliminary actuals and a comparison to the budget for
major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report section provides a summary
of the City’s investment portfolio, interest earnings and a brief
market outlook.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Cassandra Ogden
Director of Finance
215 East McKinney Street
Denton, TX 76201
940-349-7195
Section 1
City of Denton
Quarterly Financial Report
September 2021
Executive Dashboards
Note: All figures presented are in millions of dollars.FY 2020-21FY2020-2021ANNUALPRELIMINARYDESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Fund Balance as of 09/30/20 31.67$ 33.78$ RESOURCES: Ad Valorem Taxes48.34 49.50 2% Sales Tax37.10 45.40 22% Franchise Fees4.00 4.00 0% Other Taxes0.31 0.38 23% Service Fees7.77 9.46 22% Fines and Fees3.53 1.56 -56% Licenses and Permits6.12 5.94 -3% Miscellaneous Revenue5.57 3.33 -40% Transfers In27.48 27.99 2%Use of Fund Balance3.32 - -100%Total Revenues143.54 147.56 4%Total Resources175.21 181.34 EXPENDITURES: Personnel Service97.39 97.62 0% Material and Supplies3.37 2.78 -18% Maintenance and Repairs1.65 1.53 -7% Insurance1.55 2.41 55% Miscellaneous1.72 1.18 -31% Operations14.94 17.26 16% Transfers Out22.34 19.82 -11% Fixed Assets0.58 0.48 -17%Total Expenditures143.54 143.08 0%Net Income (Loss)0.00 4.48 Ending Fund Balance31.67$ 38.26$ FY 2020-21City of Denton, Texas General Fund Executive Dashboard $‐ $20 $40 $60 $80 $100 $120 $140 $160Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsSales tax is higher than budget due to an increase in consumer spending.Other taxes are higher than budget due to increased mixed beverage tax collection.Fines and fees are lower than budget due to the pandemic.Insurance is higher than budgeted due to higher insurance premiums.Transfers out are higher than budget due to revenue funding in projects. $‐ $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5Sales Tax Monthly Average by Quarter1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.
Note: All figures presented are in millions of dollars.
City of Denton, Texas
Electric Fund Executive Dashboard
FY 2020-21 FY 2020-21
ANNUAL PRELIMINARY FY 2020-21
DESCRIPTION BUDGET 1 ACTUALS VARIANCE
Beginning Working Capital
and Reserves as of 9/30/202 77.92$ 110.06$
RESOURCES:
Rate Revenues 142.18 143.12 1%
Transmission Revenue 55.60 52.56 -5%
Other Revenues 9.07 3.39 -63%
DEC Revenues 24.55 138.89 466%
Total Revenues 231.40 337.95 46%
Total Resources 309.32 448.01
EXPENDITURES:
Purchased Power 210.84 165.63 -21%
DEC Fuel 12.48 29.68 138%
Transmission of Power 19.18 17.74 -8%
Personnel Service 20.29 18.15 -11%
Operation and Maintenance 35.12 30.50 -13%
Debt Service 55.50 55.01 -1%
Transfers Out 17.14 16.73 -2%
Capital Outlay 0.55 0.45 -18%
Total Expenditures 371.10 333.89 -10%
Net Income (Loss)(139.70) 4.06
Purchaed Power Covered
through Debt Financing 140.00
Ending Working Capital
and Reserves 78.22$ 114.12$
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500 Revenue & Expenses (in Millions)
YTD Revenue YTD Expense
Key Trends
As a result of winter storm Uri, both revenues and expenditures for Purchased Power exceeded the original FY 2020-21
budget. A budget amendment in the amount of $140 million was approved by Council in March 2021.
In September, Purchased Power expenditures were reduced by $140 million and covered by long-term debt. Therefore,
the year-end actuals for Purchased Power is lower than the final approved budget amount. These purchased power costs
will be recognized over the 30-year life of the debt.
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.
0
100
200
300
400
500
600
3Q 15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21
2015 – 2021 Historical Quarterly GWH Sales
1 Annual adopted budget as amended or modified. Beginning Fund Balance 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 $8.87 million as a result of the change in classification of purchased power escrow deposit accounts.
Note: All figures presented are in millions of dollars.FY 2020-21FY2020-2021ANNUALPRELIMINARYDESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/20222.67$ 23.34$ RESOURCES: Water Sales 39.58 37.47 -5% Other Water Revenues 1.16 1.64 41% Transfers In 1.68 1.46 -13% Impact Fee Revenue 6.60 6.61 0% Use of Reserves3.92 - -100%Total Revenues52.94 47.18 -11%Total Resources75.61 70.52 EXPENDITURES: Personnel Services8.65 7.70 -11% Operations, Services11.26 9.75 -13% Capital Outlay16.71 12.45 -25% Debt Service11.06 10.90 -1% Transfers Out5.26 5.24 0%Total Expenditures52.94 46.04 -13%Net Income (Loss)- 1.14 Ending Working Capital and Reserves 22.67$ 24.48$ FY 2020-21City of Denton, Texas Water Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30 $35 $40 $45 $50Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsOther Water Revenues are favorable to budget due to increases in tapping fees and raw water resale revenuesGeneral Fund Transfers were favorable to budget due to lower than expected expenditures.Capital Outlay are favorable to budget due to current pandemic and supply shortage.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 $1.00 million for Development Plan Line Reserves.05001,0001,5002,0002,5002014‐2021 Historical Quarterly Gallons Sold (in Millions)
FY 2020-21FY 2020-21ANNUALPRELIMINARYFY2020-21DESCRIPTIONBUDGET 1 ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/20215.07$ 16.36$ RESOURCES: Wastewater Fees 25.51 23.84 -7% Other Wastewater Revenue 1.68 1.93 15% Drainage Fees 5.10 5.17 1% Transfer In 0.60 0.24 -60% Impact Fee Revenue 4.27 4.27 0%Total Revenues 37.16 35.45 -5%Total Resources 52.23 51.81 EXPENDITURES: Personnel Services 8.42 8.05 -4% Operations, Services 9.27 8.48 -9% Capital Outlay 6.77 6.82 1% Debt Service 6.77 6.57 -3% Transfer Out 5.64 5.38 -5%Total Expenditures 36.87 35.30 -4%Net Income (Loss) 0.29 0.15 Ending Working Capital and Reserves 15.36$ 16.51$ Note: All figures presented are in millions of dollars.City of Denton, Texas Wastewater Fund Executive Dashboard $‐ $5 $10 $15 $20 $25 $30 $35 $40Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsOther wastewater revenue are favorable to budget due to increase in compost revenue sales.Transfers in were favorable to budget due to an increase in other revenue.Personnel and Operations were favorable to budget 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 $0.94 million for Development Plan Line Reserves.02004006008001,0001,2001,4002014‐2021 Historical Quarterly Gallons Billed (in Millions)
FY 2020-21 FY 2020-21ANNUALPRELIMINARYFY 2020-21DESCRIPTION BUDGET ACTUALS VARIANCEREVENUES: Residential Drainage Fees 1.96$ 2.00$ 2% Nonresidential Drainage Fees 3.13 3.17 1% Wastewater Resources 0.45 - -100% General Fund Transfer0.36 - -100%Total Revenues5.90 5.17 -12%EXPENDITURES: Personnel Service2.33 1.69 -27% Operations, Services0.80 0.68 -15% Capital Outlay2.09 2.36 13% Debt Service- - 0% Transfer Out0.68 0.44 -35%Total Expenditures5.90 5.17 -12%Net Income (Loss)-$ -$ Note: All figures presented are in millions of dollars.City of Denton, Texas Drainage Operations Executive Dashboard $‐ $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0Revenue & Expenses (in Millions)YTD RevenueYTD ExpensesKey TrendsGeneral Fund Transfers were favorable to budget due to lower than expected expenditures.Personnel Service, Operations expenditures are favorable to budget due to ongoing COVID pandemic.Capital Outlay expenses are over budget due to year‐end expenditure true‐ups an additional funding provided for the channel rehabilitation drainage project.
FY 2020-21 FY 2020-21ANNUAL PRELIMINARY FY 2020-21DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/20214.20$ 11.06$ RESOURCES: Collection & Disposal 32.51 30.73 -5% Recycling 5.65 6.86 21% Other Revenue 1.65 0.47 -72% Use of Reserves 4.31 4.24 -2%Total Revenues 44.12 42.30 -4%Total Resources 54.01 49.12 EXPENDITURES: Personnel Service 10.72 10.71 0% Operations, Services7.78 6.70 -14% Capital Outlay10.73 10.41 -3% Debt Service6.97 6.93 -1% Landfill Closure1.97 1.89 -4% Transfer Out0.70 0.70 0% Admin Transfers Out5.25 4.96 -6%Total Expenditures44.12 42.30 -4%Net Income (Loss)- - Ending Working Capital and Reserves14.20$ 6.82$ 01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0002020Qtr 12020Qtr 22020Qtr 32020Qtr 42021Qtr12021Q22021Q32021Q4Refuse 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 higher than budget due to an increase in participation.Other revenue was lower than budget due to expected revenue from asset sales.Repairs & Maintenance is down due in part to supply chain issues from the pandemic.Operations, Service expense is lower than projected due to COVID savings and newer equipment that requires less maintenance.05,00010,00015,00020,00025,00030,0002020Qtr 12020Qtr 22020Qtr 32020Qtr 42021Q12021Q22021Q32021Q4Commercial 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 $11.4 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas Airport Fund Executive DashboardKey TrendsFuel Flowage Fees are greater than budget due to an unexpected increase in fuel sales.Operations services are projected lower due to the ongoing pandemic.Investment income is projected lower due to current interest rates.Gas Well Royalties are greater than budget due to current gasoline prices during the pandemic. 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing by fiscal year)Note: All financial amounts presented are in millions of dollars.FY 2020-21 FY 2020-21ANNUALP RELIMINARYDESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/202.90$ 2.97$ RESOURCES: Airport Ground Leases0.790.82 4% FBO Commissions0.160.22 36% Fuel Flowage Fees0.100.12 25% Use of Reserves0.620.00 -100%Total Operating Revenues1.67 1.16 -30%EXPENDITURES: Personal Service0.370.35 -5% Operations, Services0.390.21 -46% Transfer Out0.45 0.45 1%Total Operating Expenditures1.21 1.00 -17%Net Operating Income (Loss)0.46 0.15 NON-OPERATING REVENUES: Investment Income0.090.03 -66% Gas Well Royalties0.210.42 101% Miscellaneos Income0.000.16 0%Total Non-Operating Revenues0.30 0.61 103%NON-OPERATING EXPENDITURES: Debt Service0.76 0.76 0% Transfer Out - Capital- 0.05 0%Total Non-Operating Expenditures0.76 0.81 7%Net Non-Operating Income (Loss)(0.46) (0.20) Net Income (Loss)- (0.05) Ending Working Capital and Reserves2.90$ 2.92$ 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.$0.0$1.0$2.0$3.02011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021GAS WELLREVENUE(in millions of dollars by fiscal year)
FY 2020-21 FY 2020-21ANNUAL PRELIMINARYDESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Wo rking Capital and Reserves as of 09/30/20 3.97$ 4.50$ RESOURCES: Franchise Fees 13.63 13.72 1% Street Cuts 0.38 0.02 -95% Investment Income 0.05 - -100% Transfers In 1.24 1.24 0% Use of Reserves 0.59 - -100%Total Revenues 15.89 14.98 -6%Total Resources 19.86 19.48 EXPENDITURES: Personal Service 3.31 3.06 -8% Materials & Supplies 0.20 0.07 -65% Maintenance & Repairs 5.89 6.01 2% Operatio ns , Services 1.10 0.77 -30% Transfer Out 1.56 1.24 -21% Capital Outlay 3.83 3.83 0%Total Expenditures 15.89 14.98 -6%Net Income (Loss) - - Ending Fund Balance 3.97$ 4.50$ FY 2020-211Annual 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 are lower than budgeted due to utilities department completing own repairs.Investment income was lower than budgeted due to current COVID pandemic.Ninety‐Six miles of surface treatment was completed in the 4thquarter. There were no surface treatments completed in the 4thquarter of FY19‐20.Lower than expected expenditures for YTD actuals due to the ongoing COVID pandemic.Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY19-20FY20-21020406080100Qtr 1 Qtr 2 Qtr 3 Qtr 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 $11.0 $12.0 $13.0 $14.0Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2020-21 FY 2020-21GRANT PRELIMINARY FY 2020-21DESCRIPTION AMOUNT ACTUALS VARIANCE2020-21 Budget Comm Development14.69$ 2.44$ -48% Public Safety 1.00 0.45 -55% Transportation173.27 11.44 -84% Other 0.75 0.12 -84%Total Budget 79.71 14.45 -82%New Awards Comm Development 1.23 1.23 0% Public Safety 3.31 3.31 0% Transportation 0.21 0.21 0% Coronavirus Relief Fund (CRF) 2.82 2.82 0% American Rescue Plan (ARP) 0.01 0.01 0% Other 0.16 0.16 0%Total New Awards 7.74 7.74 0%Totals 87.45$ 22.19$ -75%COMM DEV6.76%PUBLIC SAFETY4.93%TRANS84.03%CRF3.23%ARP0.01%OTHER1.04%FY 2020‐21 Grants Awarded $‐ $20.0 $40.0 $60.0 $80.0COMMDEVPUBLICSAFETYTRANSCRFARPOTHERMillionsAwardsExpensesFY 2020‐21 Awards & Expenses (in Millions)Key Trends:The following grants have been received in FY 2020-21: Texas Emergency Rental Assistance Program: $187,444Emergency Solutions Grants Program: $1,039,136Federal Equitable Sharing: $74,070Chapter 59 Asset Forfeitures: $46,461U.S. Marshals Violent Offenders Task: $73,191Organized Crime Drug Enforcement: $11,011USSS’ N Texas Crimes Task Force: $4,405Fire-Law Enforcement Officer Education: $2,693Urban Search & Rescue Response System: $127,350Texas Intrastate Fire Mutual Aid System: $26,599Texas Department of Public Safety's Texas Division of Emergency Management (TDEM)-Winter Storm: $8,763COVID-19 Immunization: $61,2812019 SAFER Grant: $167,676Ambulance Services Cost: $2,702,019Survey: $112Airport Grant-CARES Act: $214,000Coronavirus Relief Fund from Denton County: $2,823,227American Rescue Plan: $6,136Cultural District Grant:$30,406Texas Department of Public Safety's Texas Division of Emergency Management (TDEM)-COVID 19: $100,182Humanities Texas Relief Grant: $2,768Texas State Library & Archives Commission: $20,928Texas Emission Reduction Plan: $5,000City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.1This grant amount will be spent over several years and the fiscal year 2020-21 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.
Section 2
City of Denton
Quarterly Financial Report
September 2021
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton General FundSchedule of Revenues - Budget vs Actuals (Unaudited)For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
REVENUE DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
Current Year - Ad Valorem 48,097,387$ 47,701,547$ 49,121,240$ 3%
Delinquent - Ad Valorem 136,678 253,064 85,184 -66%
Miscellaneous Penalties & Fees 397,145 384,411 293,170 -24%
Ad Valorem Taxes 48,631,210 48,339,022 49,499,594 2%
Sales Tax 39,337,834 37,103,084 45,404,857 22%
Franchise - Gas Utilities 320,976 323,308 357,602 11%
Franchise - Private Electric Utilities 120,020 101,850 101,951 0%
Franchise - Cable 320,569 206,134 229,852 12%
Franchise - Telecom 76,929 22,948 30,096 31%
Franchise - Denton Municipal Utilities 3,760,439 3,344,694 3,279,432 -2%
Franchise Fees 4,598,933 3,998,934 3,998,933 0%
Other Taxes 304,294 314,539 376,006 20%
Ambulance Service Fees 3,817,135 3,708,290 5,529,872 49%
Fire Department Fees 147,179 208,000 132,462 -36%
Building Inspections Fees 574,529 563,594 576,422 2%
Park Department Fees 226,246 1,355,231 1,503,132 11%
Planning Department Fees 1,909,039 1,799,963 1,629,878 -9%
Reprographics Fees 85,380 - - 0%
Miscellaneous Service Fees 88,325 132,011 85,129 -36%
Service Fees 6,847,833 7,767,089 9,456,895 22%
Denton Municipal Fines 967,893 1,367,422 618,547 -55%
Parking Fines 129,640 262,964 40,310 -85%
Miscellaneous Fines and Fees 492,558 728,053 386,684 -47%
Court Administrative and Service Fees 689,681 1,176,378 517,738 -56%
Fines and Fees 2,279,772 3,534,817 1,563,279 -56%
Demolition Permits 12,665 14,750 12,814 -13%
Building Permits 5,155,833 6,032,542 5,862,868 -3%
Certificate of Occupancy 49,323 52,159 50,923 -2%
Miscellaneous Licenses and Permits 7,307 23,170 12,713 -45%
Licenses and Permits 5,225,128 6,122,621 5,939,318 -3%
Investment Income 793,413 786,163 160,095 -80%
Miscellaneous Revenues 1,492,274 4,784,157 3,170,699 -34%
Miscellaneous Resources 2,285,687 5,570,320 3,330,794 -40%
ROI - Denton Municipal Utilities 11,598,054 14,577,141 13,608,459 -7%
Transfers 16,154,076 12,898,936 14,379,315 11%
Transfers 27,752,130 27,476,077 27,987,774 2%
Use of Fund Balance - 3,322,341 -
Total General Fund Revenues 137,262,821$ 143,548,844$ 147,557,450$ 3%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
Y-T-D BUDGET ACTUALS ACTUALS
NEIGHBORHOOD SERVICES
Building Inspections 3,285,877$ 3,426,668$ 3,393,017$ -1%
Community Improvement Services 1,238,232 915,845 787,134 -14%
Libraries 5,894,641 6,328,528 6,428,547 2%
Parks and Recreation 9,495,161 12,814,203 13,516,874 5%
Planning 3,519,496 2,188,930 1,974,670 -10%
Development Services Admin - 1,363,071 1,161,927 -15%
Gas Well Review 399,706 407,513 227,392 -44%
Social Services 1,198,940 1,648,744 1,455,803 -12%
25,032,053 29,093,502 28,945,364 -1%
PUBLIC SAFETY
Animal Services 2,270,464 2,372,691 2,500,926 5%
Fire 33,317,554 33,179,573 34,739,801 5%
Municipal Judge 540,696 556,432 452,967 -19%
Police 39,101,488 43,143,530 42,335,189 -2%
75,230,201 79,252,226 80,028,883 1%
TRANSPORTATION
Traffic Operations 2,474,424 2,458,979 2,415,246 -2%
Street Lighting 820,716 850,000 903,937 6%
3,295,140 3,308,979 3,319,183 0%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 2,054,783 2,042,633 2,115,656 4%
City Manager's Office 117,840 182,173 - -100%
Economic Development 4,291,396 3,346,794 4,252,363 27%
Finance Administration 681,578 459,832 587,997 28%
Treasury - - - 0%
Tax - - - 0%
Accounting 1,956,375 2,046,255 1,946,039 -5%
Budget 1,042,347 1,344,740 1,199,191 -11%
Grant Management - - 286,549 200%
Finance 5,098,726 5,128,982 4,019,776 -22%
Human Resources 2,226,733 2,363,870 2,556,172 8%
Internal Audit 466,929 540,902 500,171 -8%
Legal Administration 2,834,145 3,192,317 3,172,029 -1%
Public Affairs 1,941,978 2,330,287 1,996,398 -14%
Non-Departmental 11,629,316 12,766,178 12,172,659 -5%
30,661,846 31,894,136 30,785,224 -3%
TOTAL EXPENDITURES 134,219,240$ 143,548,843$ 143,078,654$ 0%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 9/30/202 77,919,436$ 110,062,991$
REVENUES:
Rate Revenues 145,211,390$ 142,183,280 143,122,389 1%
Transmission Revenues 49,528,549 55,600,491 52,555,559 -5%
Other Revenues 19,728,745 9,070,281 3,390,466 -63%0%
DEC Revenues 12,762,627 24,545,418 138,885,965 466%
Total Revenues 227,231,311 231,399,470 337,954,379 46%
EXPENDITURES:
Purchased Power 60,164,760 210,841,730 165,630,885 -21%
DEC Fuel 3,599,350 12,475,775 29,679,458 138%
Transmission of Power 17,801,734 19,182,169 17,742,603 -8%
Personnel Services 19,662,169 20,291,120 18,147,292 -11%
Materials and Supplies 751,158 2,343,289 719,361 -69%
Maintenance and Repair 717,643 1,473,199 825,348 -44%
Insurance 1,434,149 1,408,052 1,778,711 26%
Return on Investment 9,368,810 11,898,075 11,447,577 -4%
Franchise Fee 9,746,280 9,915,062 9,538,228 -4%
Miscellaneous 1,510,654 747,381 544,140 -27%
Operations 5,160,026 7,329,404 5,638,171 -23%
Debt Service 54,568,897 55,503,322 55,014,488 -1%
Interfund Transfers 14,978,366 17,144,167 16,733,666 -2%
Capital Outlay 5,969,453 550,929 450,929 -18%
Total Expenditures 205,433,449 371,103,674 333,890,857 -10%
Net Income (Loss)21,797,862$ (139,704,204) 4,063,522
Ending Working Capital and Reserves (61,784,768)$ 114,126,513$
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 $8.87 million as a result of the change in
classification of purchased power escrow deposit accounts.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/201 22,669,998$ 23,344,852$
REVENUES:
Water Sales Residential 20,375,256$ 20,563,184 19,243,418$ -6%
Water Sales Commercial 17,090,211 17,655,278 16,120,532$ -9%
Water for Resale 1,612,230 1,360,648 2,111,779$ 55%
Other Water 1,209,078 865,090 1,526,463$ 76%
Transfers In 1,149,991 1,676,882 1,460,974$ -13%
Investment Income 302,800 294,000 111,861$ -62%
Impact Fee Revenue 6,605,000 6,605,000 6,605,000$ 0%
Use of Reserves 1,191,610 3,924,125 -$ -100%
Total Revenues 49,536,176 52,944,207 47,180,027 -11%
EXPENDITURES:
Personnel Services 8,139,916 8,652,990 7,701,977 -11%
Purchased Power 1,342,855 1,410,789 1,352,879 -4%
Purchase of Water 1,834 3,000 2,069 -31%
Materials and Supplies 1,472,974 1,747,969 1,482,815 -15%
Maintenance and Repairs 1,477,259 1,820,365 1,675,145 -8%
Insurance 232,788 232,790 396,477 70%
Miscellaneous 185,666 342,784 240,505 -30%
Operations, Services 1,767,452 2,333,120 1,450,700 -38%
Capital Outlay 13,838,305 16,709,105 12,454,970 -25%
Return on Investment 1,359,420 1,385,269 1,292,424 -7%
Franchise Fee 1,942,028 1,978,956 1,846,319 -7%
Debt Service 12,879,020 11,064,205 10,901,425 -1%
Transfers Out 4,896,659 5,262,865 5,239,601 0%
Total Expenditures 49,536,176 52,944,207 46,037,306 -13%
Net Income (Loss)-$ - 1,142,721$
Ending Working Capital
and Reserves 22,669,998$ 24,487,573$
1 The Beginning Working Capital balance excludes $14,789,942 of Impact Fee Reserves and $1,000,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020-21
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/201 15,068,746$ 16,361,842$
REVENUES:
Residential Fees 11,422,482$ 11,583,683 11,148,913$ -4%
Commercial Fees 11,730,566 13,130,746 11,847,269$ -10%
Effluent Irrigation Fees 119,237 60,424 97,296$ 61%
Wholesale Fees 758,808 695,320 749,092$ 8%
Other Wastewater Fees 1,916,430 1,519,240 1,858,625$ 22%
Drainage Fees 5,089,545 5,079,576 5,168,014$ 2%
Transfer In 587,895 599,652 239,700$ -60%
Investment Income 218,830 221,028 74,762$ -66%
Impact Fee Reserves 4,270,000 4,270,000 4,270,000$ 0%
Total Revenues 36,113,793 37,159,670 35,453,671 -5%
Use of Reserves 783,638.00 - - 0%
Total resources 36,897,431 37,159,670 35,453,671 0%
EXPENDITURES:
Personnel Services 8,601,781 8,421,033 8,050,103 -4%
Purchased Power 1,030,524 1,221,000 1,014,247 -17%
Materials and Supplies 988,031 1,214,708 1,150,611 -5%
Maintenance and Repairs 1,090,847 1,669,791 1,630,504 -2%
Insurance 265,743 265,744 418,029 57%
Miscellaneous 50,098 36,303 13,410 -63%
Operations, Services 2,364,828 2,262,376 2,145,500 -5%
Capital Outlay 8,041,230 6,768,567 6,823,328 1%
Return on Investment 869,825 1,069,241 868,458 -19%
Franchise Fee 1,242,607 1,527,487 1,240,655 -19%
Debt Service 7,479,386 6,767,023 6,570,998 -3%
Transfers Out 4,872,531 5,643,911 5,378,410 -5%
Total Expenditures 36,897,431 36,867,185 35,304,253 -4%
Net Income (Loss) -$ 292,485 149,418$
Ending Working Capital
and Reserves 15,361,231$ 16,511,260$
1 The Beginning Working Capital balance excludes $8,234,666 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $935,000 for Development Plan Line Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2020-21 budget process.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended September 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET ACTUALS PROJECTION
REVENUES:
Residential Drainage Fees 1,949,739$ 1,954,169$1,995,012$ 2%
Nonresidential Drainage Fees 3,139,806 3,125,407 3,173,002$ 2%
Wastewater Resources 182,342 453,907 -$ -100%
General Fund Transfer 352,895 359,952 -$ -100%
Total Revenues 5,624,782 5,893,435 5,168,014 -12%
EXPENDITURES:
Personal Service 2,036,843 2,326,146 1,692,884 -27%
Materials and Supplies 52,585 81,400 51,612 -37%
Maintenance and Repairs 113,185 130,800 156,370 20%
Insurance 41,459 41,459 69,059 67%
Miscellaneous 6,375 16,900 5,207 -69%
Operations, Services 468,067 527,097 400,152 -24%
Capital Outlay 1,807,661 2,085,517 2,355,270 13%
Debt Service 473,464 - 541 541%
Transfer Out 625,143 684,116 436,919 -36%
Total Expenditures 5,624,782 5,893,435 5,168,014 -12%
Net Income (Loss)-$ -$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended Sep 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS PROJECTION
Beginning Working Capital
and Reserves as of 09/30/201 14,201,069$ 11,059,601$
REVENUES:
Refuse Fees - Residential 5,082,471$ 5,357,173 4,577,483 -15%
Refuse Fees - Commercial 14,045,123 16,714,384 14,838,143 -11%
Residential Recycling 5,448,328 4,777,635 5,567,752 17%
Commercial Recycling 1,288,420 869,608 1,289,340 48%
Landfill Gate and Material Sales 9,382,403 10,447,397 11,312,784 8%
Recycled Material Sales 67,343 66,281 67,343 2%
Asset Sales and Interest Income 1,007,521 1,175,269 102,746 -91%
Other Revenue 559,850 410,404 301,046 -27%
Use of Reserves - 4,305,620 4,241,924 -1%
Total Revenues 36,881,459 44,123,771 42,298,561 -4%
EXPENDITURES:
Personnel Service 10,443,976 10,719,635 10,710,066 0%
Materials and Supplies 182,559 494,653 341,096 -31%
Maintenance and Repairs 208,421 226,516 210,416 -7%
Insurance 259,650 291,624 456,611 57%
Miscellaneous 68,433 74,120 38,708 -48%
Operations, Services 5,676,246 6,694,418 5,639,402 -16%
Capital Outlay 4,410,620 10,730,034 10,412,187 -3%
Debt Service 8,449,966 6,968,199 6,934,108 0%
Franchise Fee 1,781,445 1,971,140 1,889,570 -4%
Transfers for Landfill Closure - 702,648 702,648 0%
Admin Transfers Out 4,371,889 5,250,784 4,963,749 -5%
Total Expenditures 35,853,205 44,123,771 42,298,561 -4%
Net Income (Loss)1,028,254$ - -
Ending Working Capital
and Reserves 14,201,069$ 6,817,677$
1 The Beginning Working Capital Reserve excludes $11,400,638 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020-21
budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended Sep 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS PROJECTION
Beginning Working Capital
and Reserves as of 09/30/20 2,900,353$ 2,974,184$
OPERATING REVENUES:
Airport Ground Leases 788,994$ 787,975 821,396 4%
FBO Commissions 180,955 161,495 217,979 35%
Miscellaneous 124,354 104,463 124,915 20%
Use of Reserves - 625,121
Total Operating Revenues 1,094,303 1,679,054 1,164,290 -31%
OPERATING EXPENDITURES:
Personal Service 431,399 367,173 350,296 -5%
Materials and Supplies 15,436 34,790 8,243 -76%
Maintenance and Repairs 27,231 72,400 20,083 -72%
Insurance 24,376 26,613 41,237 55%
Miscellaneous - 100 - -100%
Operations 131,787 260,905 142,382 -45%
Transfers Out - Operating 381,355 449,219 452,375 1%
Total Operating Expenses 1,011,584 1,211,200 1,014,616 -16%
Operating (Loss)82,719 467,854 149,674
NON-OPERATING REVENUES:
Investment Income 79,729 85,248 30,774 -64%
Gas Well Royalties 192,175 209,821 422,043 101%
Recovery of Prior Year Expenses - - 157,000 -
Gain/Loss on Sale of Fixed Assets 5,049 - - 0%
Total Non-Operating Revenues 276,953 295,069 609,817 107%
NON-OPERATING EXPENDITURES:
Debt Service - 762,923 762,923 0%
Transfers Out - Capital 300,000 - 50,000 0%
Total Non-Operating Expenses 300,000 762,923 812,923 0%
Non-Operating Income (Loss)(23,047) (467,854) (203,106)
Net Income (Loss)59,672$ 0 (53,432)
Ending Working Capital 2,900,353$ 2,920,752$
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 Sept 30, 2021
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Fund Balance
as of 9/30/2020 3,972,314$ 4,503,638$
RESOURCES:
Franchise Fees 13,306,582$ 13,634,688 13,718,164 1%
Street Cuts 369,549 378,851 24,873 -93%
Investment Income 69,958 45,000 386 -99%
Transfers In 1,323,205 1,243,811 1,244,140 0%
Use of Reserves - 591,407 - -100%
Total Resources 15,069,294 15,893,757 14,987,563 -6%
Total Resources 15,069,294 15,893,757 14,987,563 -6
EXPENDITURES:
Personnel Service 3,250,039 3,313,812 3,064,958 -8%
Materials and Supplies 75,507 202,600 72,282 -64%
Maintenance and Repairs 5,781,284 5,888,000 6,011,467 2%
Insurance 94,312 87,078 134,926 55%
Miscellaneous 3,023 7,100 4,486 -37%
Operations, Services 656,012 1,008,847 629,231 -38%
Capital Outlay - 3,825,000 3,830,000 0%
Transfer Out 4,147,213 1,561,320 1,240,213 -21%
Total Expenditures 14,007,390 15,893,757 14,987,563 -6%
Net Income (Loss)1,061,904$ - -
Ending Fund Balance 3,972,314$ 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 September 30, 2021
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20201 ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
FY 2020-21 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)5,306,699$ 2,432,394$ 986,632$ -59%
US Dept of HUD -
Community Development Block Grant(CDBG)-
CARES ACT 618,736 529,359 -14%
US Dept of HUD -
HOME Investment Partnership Program 4,314,934 1,637,380 926,068 -43%
Community Development1 9,621,633 4,688,510 2,442,059
TxDot STEP Comprehensive Grant - 87,987 21,054 -76%
Victim Assistance Coordinator Grant - 89,040 82,894 -7%
National Sexual Assault Kit Initiative Grant - 499,890 73,471 -85%
2020 UASI-Specialized Regional Response Teams
Sustainment - 144,137 132,416 -8%
2020 SHSP-EOD X-Ray Equipment Enhancement - 46,500 46,488 0%
Emergency Management Performance Grant - 40,000 - -100%
2016 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant - 20,000 17,719 -11%
Denton Police Department-Coronavirus Response
Grant - 82,398 79,337 -4%
Public Safety - 1,009,952 453,379
Airport Maintenance (RAMP) Grant - 50,000 50,000 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 46,536,358 17,834,724 1,618,488 -91%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 22,784,688 25,590,473 4,510,626 -82%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 53,865 - -100%
TxDot-RTR-McKinney (Formerly FM426) 11,827,477 9,728,607 4,149,921 -57%
TxDot-RTR-Hickory Creek FM2181-FM2499 1,103,253 1,739,940 938,054 -46%
TxDot-RTR-North Texas Boulevard Roundabout 94,059 1,907,565 174,285 -91%
Bicycle & Pedestrian Projects Grant - 1,500,000 - -100%
NCTCOG-Waze Data Sharing - 5,000 - -100%
CMAQ-Congestion Mitigation & Air Quality
Improvement Program - 11,060,800 - -100%
STBG-Surface Transportation Block Grant - 794,393 - -100%
RTR-Roadway Utility-US 377-FM 1830 3,000,000 3,000,000 - -100%
Transportation1 85,345,835 73,265,367 11,441,374
Interlibrary Loan Program (ILL) - 33,552 18,358 -45%
TexTreasures Grant - 24,820 24,820 0%
Special Projects Grant 54,058 54,058 0%
TIFMAS Training Tuition Grant 12,500 - -100%
NCTCOG-Solid Waste Implementation Grants - 378,200 21,240 -94%
Miscellaneous New Grants - 250,000 - -100%
Other - 753,130 118,476
Total FY 2020-21 Budget 94,967,468 79,716,959 14,455,288 -82%
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended September 30, 2021
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20201 ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
New Awards
Texas Emergency Rental Assistance Program-CARES
Act - 187,444 187,444 0%
Emergency Solutions Grants Program-CARES Act - 1,039,136 1,039,136 0%
Community Development - 1,226,580 1,226,580
Federal Equitable Sharing - 74,070 74,070 0%
Chapter 59 Asset Forfeitures - 46,461 46,461 0%
U.S. Marshals Violent Offenders Task Force - 73,191 73,191 0%
North Texas Organized Crime Task Force (NTOCTF)- 11,011 11,011 0%
USSS' North Texas Financial Crimes Task Force 4,405 4,405 0%
Fire-Law Enforcement Officer Education 2,693 2,693 0%
Urban Search & Rescue Response System (TEEX)- 127,350 127,350 0%
Texas Intrastate Fire Mutual Aid System-Emergency
Response (TIFMAS)- 26,599 26,599 0%
Texas Department of Public Safety's Texas Division of
Emergency Management (TDEM)-Winter Storm 8,763 8,763 0%
COVID-19 IMMUNIZATION 61,281 61,281 0%
2019 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant - 167,676 167,676 0%
Ambulance Services-Uncompensated Care Cost 2,702,019 2,702,019 0%
Public Safety - 3,305,519 3,305,519
Survey - 112 112 0%
Airport Grant-CARES Act - 214,000 214,000 0%
Transportation - 214,112 214,112
Coronavirus Relief Fund (CRF) from Denton County 4,802,113 2,823,227 2,823,227 0%
Coronavirus Relief Fund (CRF)4,802,113 2,823,227 2,823,227
American Rescue Plan (ARP) Act of 2021 - 6,136 6,136 0%
American Rescue Plan (ARP) - 6,136 6,136
Cultural District Grant Program - 30,406 30,406 0%
Texas Department of Public Safety's Texas Division of
Emergency Management (TDEM)-COVID 19-Public
Assistance Grant - 100,182 100,182 0%
Humanities Texas Relief Grant - 2,768 2,768 0%
Texas State Library & Archives Commission-CARES-
Cycle 2 Grant - 20,928 20,928 0%
Texas Emissions Reduction Plan Light-Duty Motor
Vehicle Purchase or Lease Incentive Program 5,000 5,000 0%
Others - 159,284 159,284
Total New Awards 4,802,113 7,734,858 7,734,858 0%
TOTALS 99,769,581$ 87,451,817$ 22,190,146$ -75%
1 A portion of the grants presented cover multiple years.
Section 3
City of Denton
Quarterly Financial Report
September 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 September 30, 2021
Gross Domestic Product (GDP)
Third quarter GDP (as expected) slowed quite a bit,
as headline growth decelerated from +6.7% to
+2.0% Q-O-Q, annualized. It was the weakest
reading in five quarters and a sharp decline from
forecasts in early August. Personal consumption,
which makes up about two-thirds of U.S. growth,
slowed from +12% in Q2 to +1.6%. This is the main
reason why overall growth slipped. It’s also
important to note that real GDP is inflation-
adjusted, which means higher prices equate to
lower growth readings. Housing (residential
investment) subtracted -0.4%, which may seem
strange during a housing boom, but builders
haven’t kept pace. Net exports subtracted -1.1%
from the headline. The U.S. is importing a record
amount of goods and exporting quite a bit less.
Business inventories, although still VERY weak,
actually increased relative to the previous quarter,
adding +2.1% to the headline. Without inventories,
the overall number would have been negative.
Employment
Nonfarm payrolls rose by just +194k in
September, even weaker than August’s
disappointing +366k, and a fraction of the
June/July period which averaged more than a
million. The prevailing thought had been that
after federal unemployment benefits expired on
September 6th, millions of jobless Americans
would be incentivized to take one of 10.4 million
posted positions. The surprise was that it didn’t
happen, not yet anyway. The separate household
survey painted a brighter picture with a
September job gain of +526k while -183k exited
the labor force, dragging the headline
unemployment rate down from 5.2% to 4.8%, the
lowest in 18 months. However, the number of
Americans not currently looking for work, but
willing and able, totaled 6 million in September.
Because these folks didn’t apply for a job in the
last month, they aren’t counted in the headline
unemployment number.
Inflation
Inflation continues to make headlines in both the
U.S. and around the world, particularly as it
relates to energy and especially gasoline. The
average price for a gallon of unleaded climbed to
$3.40 at quarter end, a +52% increase from a
year ago. Despite daunting headlines and more
than a +5% rise in the overall consumer price
index (CPI) for September, the month-over-
month readings have actually eased up a bit.
From March through June, headline CPI
increased by an average of +0.7%, but from July
through September, the monthly increase
averaged +0.4% still well above the Fed’s target
but trending a bit lower. Unfortunately, higher
energy prices will soon collide with cooler
weather, and housing costs (specifically rent)
appear poised to creep higher. This may all prove
transitory, but inflation expectations are
climbing and expectations drive yields higher.
Retail Sales
Headline retail sales rose +0.7% in September,
well above the -0.2% forecast. The two previous
months were revised upward with July boosted
from -1.8% to -1.6% and August from +0.7% to
+0.9%. In normal times, this would be a
respectable quarter of overall net increases, but
in the post-pandemic period, it was a weak
quarter for consumption, the biggest contributor
to GDP. The September report was significantly
better than expected with 11 of 13 spending
categories posting gains, but rising inflation made
a significant contribution to the overall value of
sales. In particular, spending at auto dealers
(+0.6%) and gasoline stations (+1.8%) reflected
higher prices rather than increased sales. With
the holiday season fast approaching, there are
legitimate concerns that the store shelves will be
mostly barren before Christmas severing
consumer’s ability to spend.
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 6.2% increase from the prior quarter at the national
level and a 5.5% 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
4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20 2Q '21 4Q '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 4th Quarter of 2020-21 shows an increase of 9.6 for a 3.5% increase over the prior quarter and an
increase of 27.7 for a 10.84% increase over the 4th 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
235.00
240.00
245.00
250.00
255.00
260.00
265.00
270.00
275.00
280.00
285.00
290.00
4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
4th Quarter FY 2020-21
Actual Y-T-D
Occupancy Tax Revenue:854,228$ 2,597,736$
FY 2020-21 Budget 568,916$ 2,555,264$
Over (Under) Budget 285,312$ 42,472$
Hotel Occupancy Tax Budget:2,555,264$
End of Year Projection:2,555,264$
End of Year Actual:2,597,736$
42,472$
Variance - Actual to Projection 42,472$
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 2021 was 1.6% more than budget and 7.5% more than prior
year's actual.This quarter illustrated a strong 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
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Sales and Use Tax Analysis Outlook Positive
4th Quarter FY 2020-21
Actual Y-T-D
Revenue: Gross Sales Tax
Municipal Operations 615,495$ 1,905,880$
General Retail & Others 12,464,513 45,257,235
Comptroller Fees (244,580) (888,009)
Amount Retained (239,689) (870,250)
Total Revenue 12,595,739$ $45,404,856
Expenses: Economic Incentives*
Economic Incentives1 686,710$ 2,615,669$
Net Total 11,909,029 42,789,188
FY 2020-21 Budget 9,359,090 35,405,009
Over(Under) Budget 2,549,939$ 7,384,179$
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:2,615,669
Variance to Original Budget:917,594$
* Economic Incentive actuals are through Sept. 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 4th quarter of FY 2021 compared to revenues from
the prior year 4th quarter shows a 19.96% increase, and compared to the budget it is 27.25% 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 10.64%from the prior quarter and increased 73.33%
from the 4th 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
160.0
180.0
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
4Q
'21
Certificates of Occupancy
Residential Permits Outlook Negative
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 33.4%from the prior quarter and decreased 4.3%from the 4th
Quarter of 2020. Staff has rated the outlook for this revenue indicator as Negative.
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
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
4Q
'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 0.70% from the prior quarter and
increased 16.88% from the 4th 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
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 2Q '21 4Q '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 4.5% for the 4th 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
4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18 2Q '19 4Q '19 2Q '20 4Q '20 2Q '21 4Q '21
Unemployment Rate Index
Dallas‐Plano‐Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
September 2021
INVESTMENT REPORT
4th Fiscal Quarter Ending September 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 700,953,699$ 702,828,857$ 702,125,607$ 703,249$ 115 550 0.24%0.08%
*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 199,000,000$ 199,936,843$ 199,950,655$ (13,812)$ 235 0.10%16.37%100.00%
U.S. Federal Agencies 112,500,000$ 113,364,650$ 112,659,269$ 705,381$ 213 1.06%20.67%100.00%
Municipal Bonds 5,000,000$ 5,088,900$ 5,091,127$ (2,227)$ 137 0.10%1.84%15.00%
Certificates of Deposit -$ -$ -$ -$ 0 0.00%0.00%35.00%
Commercial Paper 90,000,000$ 89,984,765$ 89,970,858$ 13,907$ 98 0.12%13.75%15.00%
Local Government Investment Pools 244,775,270$ 244,775,270$ 244,775,270$ -$ 1 0.01%42.26%50.00%
Demand Deposits 49,678,429$ 49,678,429$ 49,678,429$ -$ 1 0.22%5.11%-
Total Portfolio 700,953,699$ 702,828,857$ 702,125,607$ 703,249$ 115 0.24%100.00%-
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons:9/30/2021 6/30/2021 Difference 9/30/2020
Par Value 700,953,699$ 544,831,766$ 156,121,933$ 606,600,773$
Market Value 702,828,857$ 546,469,950$ 156,358,907$ 611,503,081$
Book Value 702,125,607$ 545,406,694$ 156,718,913$ 608,013,138$
Unrealized Gain(Loss)703,249$ 1,063,356$ (360,107)$ 3,489,943$
Weighted Average Maturity 115 85 30 165
Yield to Maturity 0.24%0.38%-0.14%0.94%
Portfolio Composition:
U.S. Treasuries 28.48%16.37%12.11%21.26%
U.S. Federal Agencies 16.05%20.67%-4.62%31.63%
Municipal Bonds 0.73%1.84%-1.11%2.37%
Certificates of Deposit 0.00%0.00%0.00%0.00%
Commercial Paper 12.81%13.75%-0.94%7.40%
Local Government Investment Pools 34.86%42.26%-7.40%35.42%
Demand Deposits 7.08%5.11%1.97%1.92%
Bank Collateral Review**:Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 87,617,667$ 49,678,429$ > 102%176.37%
**Does not include FDIC insurance
Depository Ledger Balance Review:Institution Account Type Beginning Bal.Deposits Ending Bal.
Wells Fargo Bank Checking 21,427,963$ 116,373,472$ 38,031,625$
Wells Fargo Bank ARPA Funds 11,646,214$ 590$ 11,646,804$
Compliance Statement & Review:
(50)
-0.70%
-1.64%
91,325,776$
94,112,469$
(2,786,694)$
7.22%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
94,352,926$
1Unrealized gain/(loss)is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are realized only
when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and losses are unlikely to be
realized.
Withdrawals
The Quarterly Investment Report is in full compliance with the objectives, restrictions,and strategies as set forth in the City of Denton's Investment Policy and the
Public Funds Investment Act (Texas Government Code, Chapter 2256.023).
Approver: David Gaines
-15.58%
0.00%
5.16%
Pledge Required
5.41%
-0.56%
-$
99,769,810$
Assistant Director of Finance
Reviewer: Nicholas Vincent
Chief Financial Officer Director of Finance
Approver: Cassandra Ogden
Preparer: Randee Klingele
Treasury Manager
DocuSign Envelope ID: 391ED523-8DB9-4603-B0E1-B1E462484ACA
4th Fiscal Quarter Ending September 30, 2021 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
9/30/2021 6/30/2021 Difference 9/30/2020 Difference
Par Value - U.S. Treasuries 199,000,000$ 89,000,000$ 110,000,000$ 129,000,000$ 70,000,000$
Par Value - U.S. Federal Agencies 112,500,000 112,500,000 - 191,525,000 (79,025,000)
Par Value - Municipal Bonds 5,000,000 10,000,000 (5,000,000) 14,000,000 (9,000,000)
Certificates of Deposit - - - - -
Par Value - Commercial Paper 90,000,000 75,000,000 15,000,000 45,000,000 45,000,000
Local Government Investment Pools 244,775,270 230,478,678 14,296,592 215,372,946 29,402,324
Demand Deposits 49,678,429 27,853,088 21,825,341 11,702,827 37,975,602
Total Par Value 700,953,699$ 544,831,766$ 156,121,933$ 606,600,773$ 94,352,926$
Market Value - U.S. Treasuries 199,936,843$ 89,344,640$ 110,592,203$ 130,420,891$ 69,515,952$
Market Value - U.S. Federal Agencies 113,364,650 113,742,774 (378,124) 194,616,782 (81,252,132)
Market Value - Municipal Bonds 5,088,900 10,060,000 (4,971,100) 14,414,520 (9,325,620)
Certificates of Deposit - - - - -
Market Value - Commercial Paper 89,984,765 74,990,770 14,993,995 44,975,115 45,009,650
Local Government Investment Pools 244,775,270 230,478,678 14,296,592 215,372,946 29,402,324
Demand Deposits 49,678,429 27,853,088 21,825,341 11,702,827 37,975,602
Total Market Value 702,828,857$ 546,469,950$ 156,358,907$ 611,503,081$ 91,325,776$
Book Value - U.S. Treasuries 199,950,655$ 89,268,528$ 110,682,127$ 129,257,967$ 70,692,687.85$
Book Value - U.S. Federal Agencies 112,659,269 112,761,592 (102,323) 192,292,183 (79,632,914)
Book Value - Municipal Bonds 5,091,127 10,058,018 (4,966,891) 14,411,758 (9,320,631)
Certificates of Deposit - - - - -
Book Value - Commercial Paper 89,970,858 74,986,690 14,984,168 44,975,457 44,995,401
Local Government Investment Pools 244,775,270 230,478,678 14,296,592 215,372,946 29,402,324
Demand Deposits 49,678,429 27,853,088 21,825,341 11,702,827 37,975,602
Total Book Value 702,125,607$ 545,406,594$ 156,719,014$ 608,013,138$ 94,112,470$
Accrued Interest 728,600$ 1,243,996$ (515,397)$ 1,650,913$ (922,313)$
Cash Value -703,557,457$ 547,713,946$ 155,843,510$ 613,153,994$ 90,403,463$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)703,249$ 1,063,356$ (360,107)$ 3,489,943$ (2,786,694)$
Strategy Statement:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee income,
as well as some,but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to 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.
DocuSign Envelope ID: 391ED523-8DB9-4603-B0E1-B1E462484ACA
4th Fiscal Quarter Ending September 30, 2021 Page 3
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Security Type:9/30/2021 6/30/2021 9/30/2020
U.S. Treasuries 199,950,655$ 89,268,528$ 129,257,967$
U.S. Federal Agencies 112,659,269 112,761,592 192,292,183
U.S. Federal Agencies - Callable - - -
Municipal Bonds 5,091,127 10,058,018 14,411,758
Certificates of Deposit - - -
Commercial Paper 89,970,858 74,986,690 44,975,457
Local Government Investment Pools 244,775,270 230,478,678 215,372,946
Demand Deposits 49,678,429 27,853,088 11,702,827
Total Book Value 702,125,607$ 545,406,594$ 608,013,138$
2976785
552720901.1
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type:9/30/2021 6/30/2021 9/30/2020
U.S. Treasuries 28.48%16.37%21.26%
U.S. Federal Agencies 16.05%20.67%31.63%
U.S. Federal Agencies - Callable 0.00%1.84%2.37%
Municipal Bonds 0.73%0.00%0.00%
Certificates of Deposit 0.00%0.00%0.00%
Commercial Paper 12.81%13.75%7.40%
Local Government Investment Pools 34.86%42.26%35.42%
Demand Deposits 7.08%5.11%1.92%
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
28.48%
U.S. Federal Agencies
16.05%Municipal Bonds
0.73%
Commercial Paper
12.81%
Local Government Investment Pools
34.86%
Demand Deposits
7.08%
Current
9/30/2021
DocuSign Envelope ID: 391ED523-8DB9-4603-B0E1-B1E462484ACA
4th Fiscal Quarter Ending September 30, 2021 Page 4
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Issuer:9/30/2021 6/30/2021 9/30/2020
AUSTIN TEXAS -$ -$ -$
BAYLOR SCOTT 9,999,600 9,998,889 9,997,289
CORNELL UNIVERSITY - - -
DARTMOUTH COLLEGE - - -
FFCB 62,502,349 72,508,461 87,544,990.21
FHLB 35,123,715 25,187,744 59,401,802.60
FHLMC 4,999,342 4,999,102 15,056,658.17
FNMA 10,033,863 10,066,285 30,288,732.22
JP MORGAN SECURITIES LLC - - -
JOHNS HOPKINS UNIVERSITY 9,999,942 9,999,645 -
NORTHWEST ISD 5,091,127 - -
PRINCETON UNIVERSITY - - -
PLANO ISD-BLDG - - 4,070,903
RBC 17,488,576 9,990,036 4,992,150.00
STATE OF CALIFORNIA 20,000,000 20,000,000 5,000,000.00
STATE OF TEXAS - 10,058,018 10,340,855
TEXPOOL 115,000,000 115,000,000 25,000,000.00
TEXSTAR 129,775,270 115,478,677 190,372,945.78
TOYOTA MOTOR CREDIT CORP 7,493,656 9,998,819 14,986,018.06
U.S. TREASURY 199,950,655 89,268,528 129,257,967.15
UNIVERSITY OF NORTH CAROLINA - - 10,000,000.00
UNIVERSITY OF TEXAS 24,989,083 14,999,300 -
WELLS FARGO DEMAND DEPOSITS 49,678,429 27,853,088 11,702,827.32
Total Book Value 702,125,607$ 545,406,593$ 608,013,138$
Current 3 Months Ago 1 Year Ago
Summary By Issuer:9/30/2021 6/30/2021 9/30/2020
BAYLOR SCOTT 1.42%1.83%1.64%
FFCB 8.90%13.29%14.40%
FHLB 5.00%4.62%9.77%
FHLMC 0.71%0.92%2.48%
FNMA 1.43%1.85%4.98%
JOHNS HOPKINS UNIVERSITY 1.42%1.83%0.00%
PLANO ISD-BLDG 0.00%0.00%0.67%
RBC 2.49%1.83%0.82%
STATE OF CALIFORNIA 2.85%3.67%0.82%
NORTHWEST ISD 0.73%0.00%0.00%
STATE OF TEXAS 0.00%1.84%1.70%
TEXPOOL 16.38%21.09%4.11%
TEXSTAR 18.48%21.17%31.31%
TOYOTA MOTOR CREDIT CORP 1.07%1.83%2.46%
U.S. TREASURY 28.48%16.37%21.26%
UNIVERSITY OF NORTH CAROLINA 0.00%0.00%1.64%
UNIVERSITY OF TEXAS 3.56%2.75%0.00%
WELLS FARGO DEMAND DEPOSITS 7.08%5.11%1.92%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1.42%
8.90%
5.00%
0.71%
1.43%
1.42%
2.49%
2.85%0.73%16.38%
18.48%
1.07%
28.48%
3.56%
7.08%
Current
9/30/2021
BAYLOR SCOTT
FFCB
FHLB
FHLMC
FNMA
JOHNS HOPKINS UNIVERSITY
RBC
STATE OF CALIFORNIA
NORTHWEST ISD
TEXPOOL
TEXSTAR
TOYOTA MOTOR CREDIT CORP
U.S. TREASURY
UNIVERSITY OF TEXAS
WELLS FARGO DEMAND DEPOSITS
DocuSign Envelope ID: 391ED523-8DB9-4603-B0E1-B1E462484ACA
4th Fiscal Quarter Ending September 30, 2021 Page 5
INVESTMENT POOL
(Based on Par Value)
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:9/30/2021 6/30/2021 9/30/2020
00-03 Months 390,953,699$ 388,331,766$ 287,075,773$
03-06 Months 120,000,000 66,500,000 112,945,000
06-12 Months 165,000,000 50,000,000 110,080,000
12-24 Months 25,000,000 30,000,000 86,500,000
24 Months & Over - 10,000,000 10,000,000
Total Par Value 700,953,699$ 544,831,766$ 606,600,773$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame:9/30/2021 6/30/2021 9/30/2020
00-03 Months 55.77%71.28%47.21%
03-06 Months 17.12%12.21%18.60%
06-12 Months 23.54%9.18%18.21%
12-24 Months 3.57%5.51%14.33%
24 Months & Over 0.00%1.84%1.65%
Total 100.00%100.00%100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows based on
the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements and by investing in
securities with active secondary markets. Short-term local government investment pools and government money market mutual funds help to
provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
DocuSign Envelope ID: 391ED523-8DB9-4603-B0E1-B1E462484ACA
4th Fiscal Quarter Ending September 30, 2021 Page 6
ECONOMIC SUMMARY
Interest Rate History
Source: U.S. Federal Reserve Statistical
Release (H.15)
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)0.24%0.36%0.38%0.40%0.54%0.79%1.04%1.15%1.30%1.67%1.90%2.15%
3-Month U.S. T-Bill 0.23%0.30%0.27%0.29%0.51%0.75%1.00%1.05%1.32%1.71%1.92%2.20%
2-Year U.S. T-Note 0.98%0.88%0.73%0.77%1.20%1.31%1.34%1.38%1.84%2.27%2.53%2.57%
Portfolio Benchmark*0.32%0.41%0.49%0.54%0.61%0.69%0.83%1.00%1.20%1.46%1.75%2.05%
Portfolio Yield 0.72%0.79%0.81%0.90%0.95%1.07%1.16%1.25%1.29%1.42%1.58%1.73%
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective)2.40%2.41%2.37%1.90%1.56%0.02%0.08%0.09%0.08%0.06%0.05%0.05%
3-Month U.S. T-Bill 2.36%2.39%2.09%1.82%1.55%0.09%0.14%0.10%0.07%0.02%0.04%0.04%
2-Year U.S. T-Note 2.49%2.26%2.10%1.76%1.57%0.25%0.15%0.13%0.12%0.15%0.25%0.21%
Portfolio Benchmark*2.33%2.48%2.00%1.80%1.55%0.33%0.18%0.13%0.12%0.08%0.07%0.08%
Portfolio Yield 2.01%2.20%2.20%2.08%1.96%1.62%1.31%0.94%0.80%0.45%0.38%0.24%
*Twelve month moving average of a
one year U.S. T-bill yield
Fiscal Year:
2020-2021
2019-2020
2018-2019
2017-2018
2016-2017
QUARTERLY COMMENTARY
9/30/2021
4,734,315$ 2,763,135$
9,330,232$ 7,751,129$ 5,750,008$
6,515,166$ 8,955,045$
6,999,226$
2nd Quarter 3rd Quarter 4th Quarter
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 fourth quarter, thirteen investments matured totaling
$130 million and nineteen investments were purchased totaling $250 million. The portfolio's weighted average yield remains
higher than the benchmark 12-month Treasury bill index by 16 basis points. During the September 21st FOMC meeting
committee members targeted mid-2022 as the end point for asset purchases, with broad support on both the timing and pace of
the taper. In addition, it was reiterated that rates would not be raised until the taper is complete. Investments and deposits with
daily liquidity was 42.01%. Staff will continue to monitor the investment portfolio and ensure compliance with the City's
Investment Policy and the Public Funds Investment Act. Staff will continue to monitor the investment portfolio and ensure
compliance with the City's Investment Policy and the Public Funds Investment Act.
Fiscal Year 2019-2020
2,955,835$ 12,354,692$
1,324,344$ 2,332,128$ 2,937,508$ 3,413,936$
6,122,536$ 9,262,499$
2,982,157$
1st Quarter
Fiscal Year 2018-2019 Fiscal Year 2020-2021
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: 391ED523-8DB9-4603-B0E1-B1E462484ACA
Days to
Maturity
Page 1
Par Value Book Value Maturity
Date
Stated
RateMarket Value
September 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Treasury Discounts -Amortizing
20TREASURY BILL4099 10,000,000.00 9,999,823.33 10/21/202104/26/2021 9,999,570.00 0.033912796G60
146TREASURY BILL4121 10,000,000.00 9,998,134.44 02/24/202208/26/2021 9,998,070.00 0.047912796D30
139TREASURY BILL4122 20,000,000.00 19,996,795.28 02/17/202209/03/2021 19,996,520.00 0.043912796L80
153TREASURY BILL4123 20,000,000.00 19,996,175.00 03/03/202209/03/2021 19,996,180.00 0.046912796L98
59,990,928.05 0.04359,990,340.0060,000,000.0064,657,097.88Subtotal and Average 125
Treasury Securities - Coupon
14U.S. TREASURY4049 4,000,000.00 4,001,835.60 10/15/20212.87511/25/2019 4,004,308.00 1.6539128285F3
14U.S. TREASURY4095 10,000,000.00 10,010,640.29 10/15/20212.87501/12/2021 10,010,770.00 0.0979128285F3
318U.S. TREASURY4105 10,000,000.00 10,123,929.87 08/15/20221.50006/11/2021 10,123,440.00 0.078912828YA2
272U.S. TREASURY4109 15,000,000.00 15,005,479.94 06/30/20220.12507/16/2021 15,004,680.00 0.076912828ZX1
226U.S. TREASURY4112 10,000,000.00 10,104,909.57 05/15/20221.75007/27/2021 10,105,470.00 0.058912828SV3
242U.S. TREASURY4113 15,000,000.00 15,006,445.32 05/31/20220.12507/27/2021 15,004,680.00 0.060912828ZR4
287U.S. TREASURY4114 10,000,000.00 10,132,174.41 07/15/20221.75007/28/2021 10,130,470.00 0.0699128287C8
334U.S. TREASURY4116 20,000,000.00 20,008,523.08 08/31/20220.12507/29/2021 20,004,680.00 0.07891282CAG6
349U.S. TREASURY4117 20,000,000.00 20,269,355.33 09/15/20221.50007/29/2021 20,266,400.00 0.089912828YF1
318U.S. TREASURY4124 10,000,000.00 10,123,859.74 08/15/20221.50009/03/2021 10,123,440.00 0.078912828YA2
395U.S. TREASURY4125 5,000,000.00 5,001,689.38 10/31/20220.12509/15/2021 5,000,195.00 0.09491282CAR2
410U.S. TREASURY4126 10,000,000.00 10,170,884.42 11/15/20221.62509/23/2021 10,167,970.00 0.101912828TY6
139,959,726.95 0.124139,946,503.00139,000,000.00131,875,376.23Subtotal and Average 282
Federal Agency Issues - Coupon
45FFCB40067,500,000.00 7,501,830.20 11/15/20213.05012/12/2018 7,527,187.95 2.8403133EJT74
689FFCB401310,000,000.00 9,999,622.22 08/21/20232.57002/21/2019 10,426,884.20 2.5723133EKAU0
151FFCB401510,000,000.00 9,999,795.06 03/01/20222.55003/01/2019 10,104,137.80 2.5553133EKBV7
73FFCB405410,000,000.00 10,000,145.04 12/13/20211.58001/08/2020 10,029,956.70 1.5723133ELDU5
112FFCB405610,000,000.00 10,004,740.85 01/21/20221.60001/31/2020 10,046,338.70 1.4423133ELHR8
229FFCB40765,000,000.00 4,996,690.92 05/18/20220.16005/28/2020 5,001,651.10 0.2653133ELZN7
350FFCB410610,000,000.00 9,999,524.67 09/16/20220.08006/16/2021 9,998,815.50 0.0853133EMK68
277FHLB406710,000,000.00 10,095,619.06 07/05/20221.95503/16/2020 10,140,350.10 0.0693130ABCY0
0FHLB40685,000,000.00 5,000,000.00 10/01/20210.32004/02/2020 5,000,000.00 0.3203130AJGL7
80FHLB407010,000,000.00 10,028,382.45 12/20/20211.62504/16/2020 10,034,457.40 0.3273130AHSR5
298FHLB411510,000,000.00 9,999,713.18 07/26/20220.07007/29/2021 10,000,820.30 0.0743130ANEU0
250FHLMC40785,000,000.00 4,999,341.80 06/08/20220.25006/15/2020 5,005,226.35 0.2693134GVJ66
96FNMA406610,000,000.00 10,033,863.17 01/05/20222.00003/16/2020 10,048,823.40 0.6933135G0S38
112,659,268.62 1.061113,364,649.50112,500,000.00112,675,707.07Subtotal and Average 213
Portfolio CITY
APData Updated: SET_MO: 10/13/2021 13:38
Run Date: 10/13/2021 - 13:38 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, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Municipal Bonds - Coupon
137Northwest Ind School Dist (TX)4108 5,000,000.00 5,091,126.60 02/15/20225.00007/22/2021 5,088,900.00 0.101667826AT8
5,091,126.60 0.1015,088,900.005,000,000.005,100,987.32Subtotal and Average 137
Commercial Paper Disc. - Amortizing
18BAYLOR SCOTT4118 10,000,000.00 9,999,600.00 10/19/20210.08008/10/2021 9,999,580.00 0.08107287CXK3
119RBC410010,000,000.00 9,994,380.55 01/28/202205/05/2021 9,996,330.00 0.17578009BAU6
199RBC41107,500,000.00 7,494,195.84 04/18/20220.14007/26/2021 7,494,292.50 0.14478009BDJ8
203TOYOTA MOTOR CREDIT4111 7,500,000.00 7,493,656.25 04/22/20220.15007/27/2021 7,494,562.50 0.15589233HDN1
131UNIVERSITY OF TEXAS CP4119 25,000,000.00 24,989,083.33 02/09/20220.12008/13/2021 25,000,000.00 0.12291510LB95
59,970,915.97 0.13159,984,765.0060,000,000.0059,967,824.65Subtotal and Average 128
Commercial Paper - Interest Bearing
46State of California4120 20,000,000.00 20,000,000.00 11/16/20210.09008/18/2021 20,000,000.00 0.09013068FBX5
20,000,000.00 0.09020,000,000.0020,000,000.0020,000,000.00Subtotal and Average 46
Commercial Paper - Cpn at Disc/Prem
18JOHNS HOPKINS UNIV CP4107 10,000,000.00 9,999,941.94 10/19/20210.07006/17/2021 10,000,000.00 0.08347803LLX9
9,999,941.94 0.08310,000,000.0010,000,000.009,999,895.16Subtotal and Average 18
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXPOOL3996 115,000,000.00 115,000,000.00 0.037115,000,000.00 0.037SYS3996
1LOCAL GOVT INV POOL - TEXSTAR3641 129,775,269.64 129,775,269.64 0.010129,775,269.64 0.010SYS3641
244,775,269.64 0.023244,775,269.64244,775,269.64248,480,163.61Subtotal and Average 1
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 38,031,625.28 38,031,625.28 0.25038,031,625.28 0.250SYS3706
1DEMAND DEPOSITS - WELLS FARGO4082 0.00 0.000.00 0.000SYS4082
1DEMAND DEPOSITS - WELLS FARGO4104 11,646,804.20 11,646,804.20 0.17006/01/2021 11,646,804.20 0.170SYS4104
49,678,429.48 0.23149,678,429.4849,678,429.4847,853,394.43Subtotal and Average 1
0.239700,610,446.33 700,953,699.12 115702,828,856.62 702,125,607.25Total and Average
Portfolio CITY
APData Updated: SET_MO: 10/13/2021 13:38
Run Date: 10/13/2021 - 13:38 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 3
Par Value Book Value Stated
RateMarket Value
September 30, 2021
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
0.00
0.239700,610,446.33 700,953,699.12 115
0Average Balance
702,828,856.62 702,125,607.25Total Cash and Investments
Portfolio CITY
APData Updated: SET_MO: 10/13/2021 13:38
Run Date: 10/13/2021 - 13:38 PM (PRF_PM2) 7.3.0