2022-057 Quarterly Financial Report – June 2022September 9, 2022 Report No: 2022-057
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending June 30, 2022.
BACKGROUND:
Attached, for your review is the Quarterly Financial Report for the period ending June 30, 2022.
If you have any questions or need additional information, please let me know.
STAFF CONTACT:
Cassey Ogden, Chief Financial Officer
(940) 349-7195
cassandra.ogden@cityofdenton.com
Third QuarterFinancial Report
21-22FISCAL YEAR
CITY OF DENTON
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, 2022.
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
Chief Financial Officer
215 East McKinney Street
Denton, TX 76201
940-349-7195
Section 1
City of Denton
Quarterly Financial Report
June 2022
Executive Dashboards
Note: All figures presented are in millions of dollars.
FY 2021-22 FY 2021-22
ANNUAL YTD
DESCRIPTION BUDGET
1 ACTUALS ANNUAL VARIANCE
Beginning Fund Balance
as of 09/30/21 39.39$ 38.63$ 38.63$
RESOURCES:
Ad Valorem Taxes 49.73 48.46 49.31 -1% Sales Tax 46.25 38.65 52.00 12% Franchise Fees 3.63 2.31 3.45 -5% Other Taxes 0.44 0.29 0.42 -5% Service Fees 8.61 6.26 7.68 -11% Fines and Fees 2.63 1.35 2.24 -15% Licenses and Permits 6.08 6.23 8.00 32% Miscellaneous Revenue 3.94 3.04 3.19 -19% Transfers In 29.01 21.22 27.26 -6%
Total Revenues 150.32 127.81 153.55 2%
Total Resources 189.71 166.44 192.18
EXPENDITURES:
Personal Service 104.16 76.82 101.68 -2% Material and Supplies 3.59 1.81 3.18 -11% Maintenance and Repairs 1.88 1.17 1.90 1% Insurance 1.63 1.08 1.93 18% Miscellaneous 1.74 0.68 1.23 -29% Operations 17.62 11.77 16.68 -5% Transfers Out 20.10 17.26 24.14 20% Fixed Assets 0.58 0.34 0.56 -3%
Total Expenditures 151.30 110.93 151.30 0%
Net Income (Loss) (0.98) 16.89 2.25
Ending Fund Balance 38.41$ 55.52$ 40.88$
FY 2021-22
PROJECTIONS
City of Denton, Texas
General Fund Executive Dashboard
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
Key Trends
Projected revenues for sales tax, and licenses and permits projections are exceeding budget due to growth.
Personnel Services expenditures are projected lower than budget due to salary savings.
Transfers expenditures are projected higher than budget due to funding athletic field lights in FY 21-22 for 1.4M
and one time supplemental packages. $-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Sales Tax Monthly Average by Quarter
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was
estimated in the FY 2021-22 budget process.
Note: All figures presented are in millions of dollars.City of Denton, Texas Electric Fund Executive DashboardFY 2021-22ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 9/30/21 109.04$ 119.50$ 119.50$ RESOURCES: Rate Revenues 163.52 107.77 175.04 7% Transmission Revenue 56.16 39.98 54.10 -4% Other Revenues 4.75 18.54 22.02 364% DEC Revenues 21.30 28.47 57.35 169%Total Revenues 245.73 194.76 308.51 26%Total Resources 354.77 314.26 428.01 EXPENDITURES: Purchased Power 75.40 54.91 93.79 24% DEC Fuel 12.48 13.16 38.22 206% Transmission of Power 19.18 13.99 19.18 0% Personnel Service 20.10 15.09 22.39 11% Operation and Maintenance 38.13 27.27 38.60 1% Debt Service 58.98 53.33 62.08 5% Transfers Out 16.21 12.61 16.62 3% Capital Outlay 0.26 0.13 0.14 -46%Total Expenditures 240.74 190.49 291.02 21%Net Income (Loss) 4.99 4.27 17.49 Ending Working Capital and Reserves 114.03$ 123.77$ 136.99$ FY 2021-22PRO JEC TIO NS$0$50$100$150$200$250Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22 Apr‐22 May‐22 Jun‐22Revenue & Expenses (in Millions)YTD RevenueYTD ExpenseKey TrendsRate Revenues are projected above budget due to warmer than normal summer temperatures.Other Revenues are projected above budget due to proceeds of $15.2 million from the sale of the TMPA Coal Mine.DEC Revenues are projected above budget due to increased energy prices. Purchased Power and DEC Fuel expenditures are projected higher than budget due to increased energy and energy/fuel prices.Personnel Services expenditures are projected higher than budget due to overtime costs. Overtime was budgeted based on lower hours in order to prevent use of reserves. 01002003004005006003Q16 1Q17 3Q17 1Q18 3Q18 1Q19 3Q19 1Q20 3Q20 1Q21 3Q21 1Q22 3Q222016 – 2022 Historical Quarterly GWH Sales1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2020‐21 budget process.
Note: All figures presented are in millions of dollars.
FY 2021-22
ANNUAL YTD
DESCRIPTION BUDGET 1 ACTUALS ANNUAL VARIANCE
Beginning Working Capital
and Reserves as of 09/30/212 20.55$ 24.58$ 24.58$
RESOURCES:
Water Sales 41.42 29.84 40.98 -1%
Other Water Revenues 2.19 1.44 1.73 -21%
Transfers In 2.03 1.52 2.13 5%
Impact Fee Revenue 6.61 4.95 6.61 0%
Total Revenues 52.25 37.75 51.45 -2%
Total Resources 72.80 62.33 76.03
EXPENDITURES:
Personnel Service 9.01 5.72 8.04 -11%
Operations, Services 11.97 7.47 11.98 0%
Capital Outlay 12.95 4.12 13.70 6%
Debt Service 10.84 10.45 10.84 0%
Transfers Out 6.48 4.32 5.77 -11%
Total Expenditures 51.25 32.08 50.33 -2%
Net Income (Loss) 1.00 5.67 1.12
Ending Working Capital
and Reserves 21.55$ 30.25$ 25.70$
FY 2021-22
PROJECTIONS
City of Denton, Texas
Water Fund Executive Dashboard
$-
$5
$10
$15
$20
$25
$30
$35
$40
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
Key Trends
Other Water Revenue projections reduced as a result of lower-than-expected auction
proceeds, debt payments from others, and interest on past due balances.
Lower than expected expenditures in Personnel Services due to vacant positions resulting in
salary savings.
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the
FY 2021-22 budget process.
2The Beginning Working Capital balance excludes $19.9 M of Impact Fee Reserves and $1.00 million for Development Plan
Line Reserves.
0
500
1,000
1,500
2,000
2,500
2015-2022 Historical Quarterly Gallons Sold (in Millions)
FY 2021-22
ANNUAL YTD
DESCRIPTION BUDGET 1 ACTUALS ANNUAL VARIANCE
Beginning Working Capital
and Reserves as of 09/30/212 17.07$ 16.46$ 16.46$
RESOURCES:
Wastewater Fees 26.19 18.88 25.22 -4%
Other Wastewater Revenue 1.94 1.52 2.11 9%
Drainage Fees 5.64 4.05 5.66 0%
Transfer In 0.61 0.46 0.61 0%
Impact Fee Revenue 4.27 3.20 4.27 0%
Aid in Construction - 9.00 9.00 9%
Total Revenues 38.65 37.11 46.87 21%
Total Resources 55.72 53.57 63.33
EXPENDITURES:
Personal Service 8.88 6.08 8.56 -4%
Operations, Services 9.65 6.48 9.33 -3%
Capital Outlay 5.64 1.24 6.03 7%
Debt Service 7.83 6.59 7.83 0%
Transfer Out 5.91 4.23 5.77 -2%
Total Expenditures 37.91 24.62 37.52 -1%
Net Income (Loss) 0.74 12.49 9.35
Ending Working Capital
and Reserves 17.81$ 28.95$ 25.81$
FY 2021-22
PROJECTIONS
Note: All figures presented are in millions of dollars.
City of Denton, Texas
Wastewater Fund Executive Dashboard
$-
$5
$10
$15
$20
$25
$30
$35
$40
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in
the FY 2021-22 budget process.
2The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage
Reserves, and $0.94 million for Development Plan Line Reserves.
0
200
400
600
800
1,000
1,200
1,400
2015-2022 Historical Quarterly Gallons Billed
(in Millions)
Key Trends
Reduced projections in Wastewater Fees due to decreased effluent irrigation sales and wholesale charges.
Projections related to Other Wastewater Revenue adjusted upward as a result of increase in compost fee
revenue.
Aid in Construction of $8 million is due to developer contributions for the Milam Creek Basin and $1 million
is related to Robson Ranch Diversion project.
FY 2021-22
ANNUAL YTD
DESCRIPTION BUDGET ACTUALS ANNUAL VARIANCE
REVENUES:
Residential Drainage Fees 2.16$ 1.56$ 2.18$ 1%
Nonresidential Drainage Fees 3.48 2.49 3.48 0%
Investment Income - - - 0%
Wastewater Resources - - - 0%
General Fund Transfer 0.37 0.27 0.37 0%
Total Revenues 6.01 4.32 6.03 0%
EXPENDITURES:
Personal Service 2.03 1.32 2.03 0%
Operations, Services 0.81 0.56 0.81 0%
Capital Outlay 2.13 0.05 2.52 18%
Debt Service - - - 0%
Transfer Out 0.67 0.42 0.67 0%
Total Expenditures 5.64 2.35 6.03 7%
Net Income (Loss) 0.37$ 1.97$ -$
FY 2021-22
PROJECTIONS
Note: All figures presented are in millions of dollars.
City of Denton, Texas
Drainage Operations Executive Dashboard
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Revenue & Expenses (in Millions)
YTD Revenue YTD Expenses
Key Trends
Variance in Capital Outlay due to transfer of capital to Drainage Channel
Rehabilitation.
FY 2 021- 2 2 FY 202 1- 22
ANNUAL YTD PROJECTIONS
DES CRIPTION BUDGET 1 ACTUALS ANNUAL VARIANCE
Be ginning Wo rking Capital
and Re s e rve s as of 09 /30/21
2 6.21$ 6 .6 3$ 6 .6 3$
RES OURCES :
Co lle c tio n & Dis pos a l 32 .75 24 .3 3 31.5 7 - 4%
Re c yc ling 6.16 5 .3 4 7 .0 7 15%
Othe r Re ve nue 0 .9 7 0 .7 6 0 .9 8 1%
Total Re ve nue s 39 .88 30 .4 3 3 9.6 2 - 1%
Total Re s o urc e s 46 .09 37 .0 6 4 6.2 5
EXPENDITURES :
Pe rs o nne l S e rvic e 11.5 5 8 .3 0 11.2 9 - 2%
Ope rations , S e rvic e s 10 .73 6 .5 7 9 .7 1 - 10%
Ca pital Outla y 2.51 1.9 3 2 .6 1 4%
De bt S e rvic e 5 .6 9 5 .5 4 5 .6 9 0%
Landfill Clos ure 0 .7 2 0 .5 4 0 .7 2 0%
Tra ns fe r Out 5 .9 7 4 .3 5 5 .9 7 0%
Total Expe nditure s 37.17 27 .2 3 3 5.9 9 - 3%
Ne t Inc ome (Los s ) 2.71 3 .2 0 3 .6 3
Ending Wo rking Ca pital
and Re s e rve s 8 .9 2$ 9 .8 3$ 10 .2 6$
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2020
Qtr 3
2020
Qtr 4
2021
Qtr1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
2022
Q2
2022
Q3
Refuse Tonnage Recycling and ReuseTonnage
Residential Curbside Collection Tonnage
Note: All figures presented are in millions of dollars.
City of Denton, Texas
Solid Waste Fund Executive Dashboard
Key Trends
Recycling Projection is trending higher due to residential refuse.
Operations, Services is projected lower than budget due to vehicle maintenance.0
5,000
10,000
15,000
20,000
25,000
30,000
2020
Qtr 3
2020
Qtr 4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
2022
Q2
2022
Q3
Commercial Refuse & Recycling (Front & Side Load)
Cubic Yards Serviced per Week
Commercial Refuse Commercial Recycling1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was
estimated in the FY 2021 - 22 budget process.
2The Beginning Working Capital and Reserves excludes $12.0 million of Landfill Closure/Post Closure reserves.
City of Denton, Texas
Airport Fund Executive Dashboard
Key Trends
Increased activity and inflation have caused increases in both revenues and expenses.
Increased volume and higher natural gas prices have caused a greater than expected increase
in Gas Well Royalties
$0.0
$1.0
$2.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GAS WELL REVENUE
(in millions of dollars by fiscal year)
20,000
30,000
40,000
50,000
60,000
AIRPORT OPERATIONS BY QUARTER
(takeoff or landing by fiscal year)
Note: All financial amounts presented are in millions of dollars.
FY 2021-22 FY 2021-22
ANNUAL YTD
DES CRIP TION B UDGET
1 ACTUALS ANNUAL VARIANCE
B e ginning Wo rking Capital
and Re s e rve s as o f 09/30/21 2.61$ 2.90$ 2.90$
RES OURCES :
Airpo rt Gro und Le as e s 0.80 0.64 0.83 4%
FB O Co mmis s io ns 0.21 0.17 0.24 14%
Fue l Flo wage Fe e s 0.12 0.06 0.14 17%
To tal Ope rating Re ve nue s 1.13 0.88 1.21 7%
EXP ENDITURES :
P e rs o nal S e rvic e 0.43 0.29 0.42 -2%
Ope ratio ns , S e rvic e s 0.40 0.18 0.46 15%
Trans fe r Out 0.46 0.35 0.47 2%
To tal Ope rating Expe nditure s 1.29 0.82 1.35 5%
Ne t Ope rating Inc o me (Lo s s ) (0.16) 0.06 (0.14)
NON-OP ERATING REVENUES :
Inve s tme nt Inc o me 0.04 0.03 0.01 -75%
Gas We ll Ro yaltie s 0.23 0.41 0.50 117%
Mis c e llane o s Inc o me 0.00 0.00 0.00 0%
To tal No n-Ope rating Re ve nue s 0.27 0.43 0.51 89%
NON-OP ERATING EXP ENDITURES :
De bt S e rvic e 0.72 0.68 0.72 0%
Trans fe r Out - Capital - - - 0%
To tal No n-Ope rating Expe nditure s 0.72 0.68 0.72 0%
Ne t No n-Ope rating Inc o me (Lo s s ) (0.45) (0.25) (0.21)
Ne t Inc o me (Lo s s ) (0.61) (0.20) (0.35)
Ending Wo rking Capital and Re s e rve s 2.00$ 2.70$ 2.55$
P ROJECTIONS
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021 - 22 budget process.
FY 2021-22ANNUAL YTDDESCRIPTION BUDGET 1ACTUALS ANNUAL VARIANCEBeginning Working Capital and Reserves as of 09/30/21 3.93$ 4.50$ 4.50$ RESOURCES: Franchise Fees 14.48 11.23 14.48 0% Street Cuts 0.03 - - -100% Investment Income 0.04 0.02 0.06 50% Transfers In 1.31 1.04 1.31 0%Total Revenues 15.86 12.29 15.85 0%Total Resources 19.79 16.79 20.35 EXPENDITURES: Personal Service 3.55 2.11 3.30 -7% Materials & Supplies 0.10 0.08 0.11 10% Maintenance & Repairs 6.51 2.85 5.60 -14% Operations, Services 0.85 0.58 0.88 4% Transfer Out 5.31 0.86 5.96 12%Total Expenditures 16.32 6.48 15.85 -3%Net Income (Loss) (0.46) 5.81 - Ending Fund Balance 3.47$ 10.31$ 4.51$ FY 2021-22PROJECTIONS1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKey TrendsStreet Cuts has been reduced due to the utilities completing their own repairs. Maintenance & Repairs are projected to be $0.91 million less than budgeted due to a competitive labor market and supply chain shortages resulting in reduced expenditures through 3Q 2022. In response, the City has increased starting crew wages and is working with vendors to acquire the equipment necessary to increase maintenance activity through the remainder of the year.Transfer Out are projected to be $0.67 million above budget due to additional transfers out to capital projects.Note: All figures presented are in millions of dollars.036912Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY20-21FY21-22 - 20.00 40.00 60.00 80.00 100.00Qtr 1 Qtr 2 Qtr 3 Qtr 4Lane Miles Surface TreatmentFY 20-21FY21-22 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22Revenue & Expenses (in Millions)YTD RevenueYTD Expenses
FY 2021-22 FY 2021-22
GRANT YTD
DESCRIPTION AMOUNT ACTUALS
2021-22 Budget
Comm Development 7.61$ 2.11$
Public Safety 2.18 0.38
Transportation 44.47 2.70
Other 25.24 5.63
Total Budget 79.50 10.82
New Awards
Public Safety 0.24 0.24
Transportation 0.18 0.18
Total New Awards 0.42 0.42
Totals 79.92$ 11.24$ COMM DEV
9.52%PUBLIC
SAFETY
3.04%
TRANS
55.87%
OTHER
31.57%
FY 2021-22 Grants Awarded
$-
$20.0
$40.0
$60.0
COMMDEVPUBLICSAFETYTRANSOTHERAwards Expenses
FY 2021-22 Awards & Expenses (in Millions)
City of Denton, Texas
Grants Dashboard
Note: All figures presented are in millions of dollars.
Key Trends
The following grants have been received in FY 2021-22:
➢Chapter 59 Asset Forfeitures: $8,150
➢U.S. Marshals Violent Offenders Task Force: $59,411
➢North Texas Organized Crime Task Force: $7,919
➢PD-Law Enforcement Officer Standards & Education:$21,785
➢U.S. Immigration & Customs Enforcement : $1,659
➢Texas Intrastate Fire Mutual Aid System:$3,749
➢2021-SHSP-EOD Protective Suit:$40,864
➢2020 Staffing for Adequate Fire & Emergency (SAFER) Grant: $99,311
➢TxDot-CMAQ-School Connection Sidewalks: $75,520
➢TxDot-Safe Routes to School: $108,400
Section 2
City of Denton
Quarterly Financial Report
June 2022
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The information provided is unaudited; for a complete audited report, please refer to the City of Denton Comprehensive Annual Financial Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)For the Period Ended June 30, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Current Year - Ad Valorem 48,776,573$ 36,817,374$ 48,065,826$ 49,083,288$ 48,897,103$ 0%
Delinquent - Ad Valorem 58,918 168,693 92,213 255,594 98,767 -61%
Miscellaneous Penalties & Fees 231,369 303,591 298,853 388,256 310,931 -20%
Ad Valorem Taxes 49,066,860 37,289,658 48,456,892 49,727,138 49,306,801 -1%
Sales Tax 32,809,118 35,147,673 38,651,904 46,246,938 51,992,420 12%
Franchise - Gas Utilities 234,044 167,021 217,863 274,458 260,764 -5%
Franchise - Private Electric Utilities 44,111 22,540 32,937 86,425 82,113 -5%
Franchise - Cable 104,108 112,859 92,959 173,069 164,434 -5%
Franchise - Telecom 26,919 38,244 14,333 58,647 55,721 -5%
Franchise - Denton Municipal Utilities 2,252,725 1,950,551 1,950,160 3,036,038 2,884,549 -5%
Franchise Fees 2,661,907 2,291,215 2,308,252 3,628,637 3,447,581 -5%
Other Taxes 153,914 223,262 292,802 446,522 419,727 -6%
Ambulance Service Fees 2,063,024 2,570,021 2,438,002 4,334,724 2,849,049 -34%
Fire Department Fees 95,329 110,964 146,976 147,952 151,327 2%
Building Inspections Fees 428,257 411,836 511,753 556,742 641,808 15%
Park Department Fees 852,713 792,600 1,059,137 1,448,690 1,651,532 14%
Planning Department Fees 1,150,965 1,629,568 2,024,067 2,010,213 2,196,761 9%
Miscellaneous Service Fees 61,975 85,120 77,516 113,486 190,227 68%
Service Fees 4,652,263 5,600,109 6,257,451 8,611,807 7,680,704 -11%
Denton Municipal Fines 468,102 867,009 499,520 1,156,000 795,660 -31%
Parking Fines 23,755 104,250 71,025 139,000 150,963 9%
Miscellaneous Fines and Fees 276,447 329,609 315,692 471,535 556,548 18%
Court Administrative and Service Fees 381,468 627,724 467,376 866,137 740,953 -14%
Fines and Fees 1,149,772 1,928,592 1,353,613 2,632,672 2,244,124 -15%
Demolition Permits 10,035 10,875 6,358 14,500 11,051 -24%
Building Permits 4,571,196 5,166,959 6,163,167 6,008,546 7,933,073 32%
Certificate of Occupancy 35,365 39,750 60,450 53,000 50,202 -5%
Miscellaneous Licenses and Permits 10,394 4,508 (1,363) 6,009 10,285 71%
Licenses and Permits 4,626,990 5,222,092 6,228,612 6,082,055 8,004,611 32%
Investment Income 221,934 (196,250) 155,860 785,000 151,163 -81%
Miscellaneous Revenues 1,845,114 1,612,880 2,881,876 3,154,232 3,042,745 -4%
Miscellaneous Resources 2,067,048 1,416,630 3,037,736 3,939,232 3,193,908 -19%
ROI - Denton Municipal Utilities 9,180,821 11,321,563 11,253,676 15,459,438 13,971,195 -10%
Transfers 11,438,346 10,164,705 9,967,155 13,551,129 13,285,903 -2%
Transfers 20,619,167 21,486,268 21,220,831 29,010,567 27,257,098 -6%
Total General Fund Revenues 117,807,039$ 110,605,499$ 127,808,093$ 150,325,568$ 153,546,974$ 2%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
NEIGHBORHOOD SERVICES
Building Inspections 2,493,471$ 2,752,002$ 2,544,065$ 3,668,837$ 3,367,644$ -8%
Community Improvement Services 564,162 584,617 6,062 779,379 - -100%
Libraries 4,610,325 4,992,969 4,698,881 6,656,368 6,402,569 -4%
Parks and Recreation 7,840,624 11,020,369 10,541,403 14,572,452 15,895,275 9%
Planning 1,421,019 2,295,371 2,344,051 2,876,834 3,066,510 7%
Development Services Admin 874,062 1,139,050 868,123 1,518,530 1,518,530 0%
Gas Well Review 69,728 282,713 68,038 376,899 407,513 8%
Social Services 909,117 1,761,769 1,757,149 2,325,382 2,666,611 15%
18,782,508 24,828,860 22,827,772 32,774,681 33,324,652 2%
PUBLIC SAFETY
Animal Services 1,850,089 2,012,642 1,783,831 2,683,147 2,705,519 1%
Fire 25,972,668 26,524,505 27,264,629 35,246,455 35,000,992 -1%
Municipal Judge 320,517 425,378 406,861 567,082 564,801 0%
Police 31,343,727 34,054,897 33,271,098 45,400,386 44,072,684 -3%
60,516,493 63,017,422 62,726,419 83,897,070 82,343,996 -2%
TRANSPORTATION
Traffic Operations 1,344,237 1,789,094 1,693,108 2,385,130 2,441,907 2%
Street Lighting 677,541 637,585 705,723 850,000 900,000 6%
2,021,778 2,426,679 2,398,831 3,235,130 3,341,907 3%
ADMINISTRATIVE & COMMUNITY SERVICES
City Manager's Office 1,738,775 1,824,661 1,745,347 2,429,193 2,340,490 -4%
Economic Development 2,601,014 3,326,405 1,897,734 4,434,595 4,220,454 -5%
Finance 2,952,969 4,235,048 4,007,530 5,645,942 5,496,043 -3%
Human Resources 1,849,294 2,126,957 2,161,807 2,820,895 2,920,096 4%
Internal Audit 371,137 421,014 434,910 561,268 545,985 -3%
Legal Administration 2,535,126 2,483,130 2,104,897 3,310,390 2,971,643 -10%
Public Affairs 1,422,875 1,927,166 1,375,443 2,569,200 2,338,773 -9%
Non-Departmental 9,384,501 7,195,963 9,244,616 9,617,981 11,452,306 19%
22,855,691 23,540,344 22,972,284 31,389,464 32,285,790 3%
TOTAL EXPENDITURES 104,176,470$ 113,813,305$ 110,925,306$ 151,296,345$ 151,296,345$ 0%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2022
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 9/30/21 109,035,229$ 119,498,711$
REVENUES:
Rate Revenues 96,638,500$ 111,853,389$ 107,769,448$ 163,523,145 175,041,305 7%
Transmission Revenues 34,590,599 34,149,154 39,982,949 56,160,399 54,103,256 -4%
Other Revenues 2,384,786 3,132,795 18,545,963 4,752,353 22,023,677 363%0%
DEC Revenues 130,689,166 13,618,963 28,467,047 21,293,023 57,349,601 169%
Total Revenues 264,303,051 162,754,301 194,765,407 245,728,920 308,517,839 26%
EXPENDITURES:
Purchased Power 287,398,192 51,897,949 54,906,889 75,398,210 93,788,174 24%
DEC Fuel 25,747,384 8,583,427 13,156,681 12,475,775 38,220,433 206%
Transmission of Power 11,411,503 10,982,361 13,987,758 19,182,169 19,182,169 0%
Personnel Services 13,541,130 15,386,959 15,090,651 20,102,836 22,394,234 11%
Materials and Supplies 449,274 1,591,526 1,026,752 2,425,169 2,378,844 -2%
Maintenance and Repair 639,959 985,053 901,651 1,432,671 1,355,524 -5%
Insurance 1,465,673 1,675,791 3,312,585 2,234,388 2,190,518 -2%
Return on Investment Return on Investment7,657,679 7,869,228 9,572,973 11,785,382 10,368,133 -12%
Franchise Fee Franchise Fee6,374,426 7,108,579 7,970,094 10,644,166 12,867,166 21%
Miscellaneous 534,812 644,094 479,878 756,916 740,765 -2%
Operations 3,931,929 6,617,444 4,010,871 8,843,126 8,689,108 -2%
Debt Service 47,758,697 53,334,771 53,334,771 58,984,872 62,079,903 5%
Interfund Transfers 12,470,130 12,160,687 12,609,565 16,214,249 16,623,446 3%
Capital Outlay 390,000 133,494 133,494 263,494 143,494 -46%
Total Expenditures 419,770,788 178,971,363 190,494,613 240,743,423 291,021,911 21%
Net Income (Loss)(155,467,737)$ (16,217,062)$ 4,270,794$ 4,985,497 17,495,928
Ending Working Capital and Reserves 114,020,726$ 136,994,639$
1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount
which was estimated in the FY 2021-22 budget process.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2022
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 09/30/211 20,546,185$ 24,582,745$
REVENUES:
Water Sales Residential 12,851,079$ 16,141,410$ 14,129,917$ 21,519,010 21,229,678 -1%
Water Sales Commercial 11,194,927 13,858,801 12,917,388 18,475,937 17,701,041 -4%
Water for Resale 1,950,632 1,068,062 2,791,388 1,423,894 2,063,271 45%
Other Water 1,068,556 1,419,487 1,377,085 1,892,391 1,700,675 -10%
Transfers In 1,257,661 1,525,161 1,524,956 2,033,275 2,033,275 0%
Investment Income 84,512 225,030 63,246 300,000 115,000 -62%
Impact Fee Revenue 4,954,411 4,954,411 4,953,753 6,605,000 6,605,000 0%
Total Revenues 33,361,778 39,192,362 37,757,733 52,249,507 51,447,940 -2%
EXPENDITURES:
Personal Service 5,810,170 6,814,572 5,719,828 9,013,419 8,038,296 -11%
Purchased Power 950,171 1,058,234 1,102,604 1,410,789 1,410,789 0%
Purchase of Water 1,615 2,250 1,160 3,000 3,000 0%
Materials and Supplies 933,176 1,345,832 1,186,580 2,100,011 1,747,934 -17%
Maintenance and Repairs 1,200,170 1,618,860 1,233,744 2,162,508 2,182,187 1%
Insurance 191,907 184,813 169,280 244,905 240,470 -2%
Miscellaneous 181,177 263,426 147,534 348,584 304,874 -13%
Operations, Services 866,712 1,803,678 1,227,665 2,177,877 2,575,892 18%
Capital Outlay 5,467,789 10,276,944 4,124,109 12,950,759 13,700,759 6%
Return on Investment 882,316 1,087,390 991,434 1,449,659 1,449,659 0%
Franchise Fee 1,260,452 1,553,414 1,416,335 2,070,942 2,070,942 0%
Debt Service 10,515,401 10,445,573 10,445,573 10,835,105 10,835,105 0%
Transfers Out 4,121,567 4,306,803 4,324,169 6,483,661 5,765,557 -11%
Total Expenditures 32,382,623 40,761,789 32,090,015 51,251,219 50,325,464 -2%
Net Income (Loss)979,155$ (1,569,427)$ 5,667,718$ 998,288 1,122,476
Ending Working Capital
and Reserves 21,544,473$ 25,705,221$
1 The Beginning Working Capital balance excludes $19,916,357 of Impact Fee Reserves and includes $1,000,000 for Development Plan Line Reserves.
budget process.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/211 17,068,351$ 16,455,340$
REVENUES:
Residential Fees 8,461,040$ 9,420,796$ 8,965,659$ 11,879,945 11,554,408 -3%
Commercial Fees 8,506,659 9,980,002 9,340,295 13,504,172 12,991,745 -4%
Effluent Irrigation Fees 66,519 72,363 77,651 96,470 86,411 -10%
Wholesale Fees 554,913 534,899 497,789 713,103 586,639 -18%
Other Wastewater Fees 1,393,558 1,375,675 1,479,888 1,833,982 2,092,206 14%
Drainage Fees 3,865,420 4,286,415 4,047,102 5,638,695 5,663,705 0%
Transfer In 449,739 458,796 458,734 611,645 611,645 0%
Investment Income 56,815 75,010 41,424 100,000 19,627 -80%
Impact Fee Reserves 3,202,927 3,202,927 3,202,497 4,270,000 4,270,000 0%
Aid in Construction 25,917 - 9,000,000 - 9,000,000
Total Revenues 26,583,507 29,406,883 37,111,039 38,648,012 46,876,386 21%
EXPENDITURES:
Personal Service 6,210,078 6,662,282 6,081,005 8,881,839 8,557,682 -4%
Purchased Power 742,970 915,872 789,878 1,221,000 1,221,000 0%
Materials and Supplies 830,450 992,735 1,006,908 1,338,420 1,275,054 -5%
Maintenance and Repairs 1,119,769 1,801,941 1,148,320 2,375,605 2,206,711 -7%
Insurance 202,339 205,736 190,751 274,271 274,271 0%
Miscellaneous 36,254 27,468 22,804 32,942 34,283 4%
Operations, Services 1,408,541 1,634,927 1,650,074 2,194,887 2,185,856 0%
Capital Outlay 3,419,488 4,230,800 1,238,156 5,640,309 6,032,469 7%
Return on Investment 640,826 684,157 689,270 912,087 879,648 -4%
Franchise Fee 915,465 977,366 984,671 1,302,981 1,256,640 -4%
Debt Service 6,296,161 6,581,255 6,581,255 7,825,131 7,825,131 0%
Transfers Out 4,133,933 4,430,881 4,242,359 5,907,049 5,770,292 -2%
Total Expenditures 25,956,274 29,145,420 24,625,451 37,906,521 37,519,037 -1%
Net Income (Loss)627,233$ 261,463$ 12,485,588$ 741,491 9,357,349
Ending Working Capital
and Reserves 17,809,842$ 25,812,689$
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2021-22 budget process.
1 The Beginning Working Capital balance excludes $11.6 million of Impact Fee Reserves but includes $1.0 million for Drainage Reserves,
and $0.94 million for Development Plan Line Reserves.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
REVENUES:
Residential Drainage Fees 1,500,066$ 1,609,895$ 1,555,780$ 2,158,037$ 2,175,050$ 1%
Nonresidential Drainage Fees 2,365,353 2,676,520 2,491,322 3,480,658 3,488,655 0%
Wastewater Resources - - - - - 0%
General Fund Transfer 269,964 275,401 275,363 367,151 367,151 0%
Total Revenues 4,135,383 4,561,816 4,322,465 6,005,846 6,030,856 0%
EXPENDITURES:
Personnel Service 1,297,378 1,516,707 1,320,759 2,022,003 2,022,003 0%
Materials and Supplies 37,982 66,696 47,120 88,900 88,900 0%
Maintenance and Repairs 121,019 100,890 109,444 134,500 134,500 0%
Insurance 33,427 32,108 27,852 42,801 42,801 0%
Miscellaneous 3,430 12,677 6,880 16,900 16,900 0%
Operations, Services 294,857 396,954 357,294 529,182 529,182 0%
Capital Outlay 401,134 1,598,453 58,764 2,130,982 2,523,142 18%
Debt Service - - - - - 0%
Transfer Out 327,756 505,139 419,710 673,428 673,428 0%
Total Expenditures 2,516,983 4,229,624 2,347,823 5,638,696 6,030,856 7%
Net Income (Loss) 1,618,400$ 332,192$ 1,974,642$ 367,150$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2022
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 09/30/211 6,210,148$ 6,629,830$
REVENUES:
Refuse Fees - Residential 3,438,009$ 4,045,990$ 3,564,308$ 5,429,866 4,710,279 -13%
Refuse Fees - Commercial 10,854,778 11,180,819 10,984,258 15,134,905 14,454,053 -4%
Residential Recycling 4,185,245 3,577,482 4,325,146 4,769,339 5,719,101 20%
Commercial Recycling 956,889 1,041,910 1,019,154 1,389,027 1,353,002 -3%
Landfill Gate and Material Sales 8,098,837 9,011,736 9,781,972 12,183,212 12,404,386 2%
Recycled Material Sales 50,508 52,030 50,508 69,364 69,268 0%
Asset Sales and Interest Income 74,323 309,331 429,763 412,385 403,482 -2%
Other Revenue 258,044 364,432 278,064 493,295 508,245 3%
Total Revenues 27,916,633 29,583,730 30,433,173 39,881,393 39,621,816 -1%
EXPENDITURES:
Personal Service 8,127,994 8,665,355 8,296,138 11,552,240 11,290,299 -2%
Materials and Supplies 181,221 594,466 304,735 767,522 738,301 -4%
Maintenance and Repairs 145,980 234,299 149,075 295,901 306,237 3%
Insurance 221,014 221,984 197,098 295,935 463,386 57%
Miscellaneous 38,708 49,748 26,224 66,320 49,110 -26%
Operations, Services 3,643,478 5,518,643 4,405,034 7,381,496 6,230,088 -16%
Capital Outlay 9,318,872 1,871,171 1,933,247 2,511,679 2,613,219 4%
Debt Service 6,744,656 5,537,839 5,537,839 5,690,617 5,690,617 0%
Franchise Fee 1,383,269 1,433,987 1,491,843 1,911,728 1,911,729 0%
Transfers for Landfill Closure 526,986 539,323 537,890 719,000 719,000 0%
Admin Transfers Out 3,907,527 4,481,306 4,346,262 5,974,266 5,974,265 0%
Total Expenditures 34,239,705 29,148,121 27,225,385 37,166,704 35,986,251 -3%
Net Income (Loss)(6,323,072)$ 435,609$ 3,207,788$ 2,714,689 3,635,565
Ending Working Capital
and Reserves 8,924,837$ 10,265,395$
1 The Beginning Working Capital Reserve excludes $11,992,859 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)
For the Period Ended June 30, 2022
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/21 2,606,662$ 2,899,720$
OPERATING REVENUES:
Airport Ground Leases 616,799$ 600,449$ 640,777$ 800,492 832,000 4%
FBO Commissions 145,135 159,141 171,490 212,160 235,000 11%
Miscellaneous 79,203 88,932 63,178 118,560 143,554 21%
Total Operating Revenues 841,137 848,522 875,445 1,131,212 1,210,554 7%
OPERATING EXPENDITURES:
Personal Service 311,262 323,972 287,294 431,901 418,857 -3%
Materials and Supplies 7,358 26,096 9,838 34,790 38,850 12%
Maintenance and Repairs 9,754 57,310 33,101 76,400 113,400 48%
Insurance 19,960 20,561 21,399 27,412 27,411 0%
Miscellaneous - 75 - 100 - -100%
Operations 97,367 196,634 117,042 262,135 285,310 9%
Transfers Out - Operating 339,300 347,068 351,394 462,696 462,696 0%
Total Operating Expenses 785,001 971,716 820,068 1,295,434 1,346,524 4%
Operating (Loss) 56,136 (123,194) 55,377 (164,222) (135,970)
NON-OPERATING REVENUES:
Investment Income 24,135 30,605 15,493 40,800 10,000 -75%
Gas Well Royalties 195,820 173,896 410,897 231,830 500,000 116%
Total Non-Operating Revenues 219,955 204,501 426,390 272,630 510,000 87%
NON-OPERATING EXPENDITURES:
Debt Service 716,761 682,124 682,124 724,659 724,659 0%
Transfers Out - Capital - - - - - 0%
Total Non-Operating Expenses 716,761 682,124 682,124 724,659 724,659 0%
Non-Operating Income (Loss)(496,806)(477,623)(255,734)(452,029)(214,659)
Net Income (Loss)(440,670)$ (600,817)$ (200,357)$ (616,251)(350,629)
Ending Working Capital 1,990,411$ 2,549,091$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Projections (Unaudited)
For the Period Ended June 30, 2022
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 9/30/2021 3,928,623$ 4,503,637$
RESOURCES:
Franchise Fees 9,075,988$ 10,858,694$ 11,233,068$ 14,476,328 14,476,328 0%
Street Cuts 24,873 25,374 - 33,827 - -100%
Investment Income 24,494 31,505 21,102 42,000 62,000 48%
Transfers In 933,187 979,635 1,035,656 1,306,002 1,306,000 0%
Total Resources 10,058,542 11,895,208 12,289,826 15,858,157 15,844,328 0%
EXPENDITURES:
Personal Service 2,240,517 2,662,039 2,112,779 3,548,910 3,300,000 -7%
Materials and Supplies 49,154 75,914 81,264 101,200 110,000 9%
Maintenance and Repairs 2,790,111 4,886,412 2,852,364 6,514,348 5,600,000 -14%
Insurance 65,309 67,276 94,847 89,690 126,463 41%
Miscellaneous 3,536 5,327 615 7,100 5,000 -30%
Operations, Services 385,175 572,620 485,476 775,047 750,000 -3%
Transfer Out 690,200 3,970,186 856,916 5,281,213 5,952,865 13%
Total Expenditures 6,224,002 12,239,774 6,484,261 16,317,508 15,844,328 -3%
Net Income (Loss)3,834,540$ (344,566)$ 5,805,565$ (459,351) -
Ending Fund Balance 3,469,272$ 4,503,637$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2021-22 budget process.
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended June 30, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
CURRENT
Y-T-D
ANNUAL
BUDGET
FY 2021-22 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)6,293,330$ 844,603$ 2,372,988$
US Dept of HUD -
Community Development Block Grant(CDBG)-
CARES ACT 529,359 437,477 1,180,791
Texas Emergency Rental Assistance Program-CARES
Act 187,444 - 18,957
US Dept of HUD -
HOME Investment Partnership Program 5,241,002 537,361 3,015,263
Emergency Solutions Grants Program-CARES Act 1,039,136 289,536 1,018,267
Community Development1 13,290,271 2,108,977 7,606,266
TxDot STEP Comprehensive Grant - 19,009 78,500
National Sexual Assault Kit Initiative Grant 100,888 35,813 445,149
2020 UASI-Specialized Regional Response Teams
Sustainment 132,416 11,291 123,003
2021 UASI-Specialized Regional Response Teams
Sustainment - 46,473 94,575
2021 UASI-Regional Warning Siren Cyber Security - - 43,692
2019 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant 167,676 197,725 1,026,738
Urban Search & Rescue Response System (TEEX)- 23,227 330,000
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 40,000 40,000
Denton Police Department-Coronavirus Response
Grant 80,416 1,896 3,088
Public Safety1 481,396 375,434 2,184,745
Airport Maintenance (RAMP) Grant - 4,901 50,000
TxDot-RTR-Mayhill Rd-IH35 E to US 380 48,984,689 1,575,077 14,896,002
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 27,295,314 262,389 19,907,802
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 53,865
TxDot-RTR-McKinney (Formerly FM426) 15,977,398 628,230 2,895,944
TxDot-RTR-Hickory Creek FM2181-FM2499 2,041,307 6,240 359,920
TxDot-RTR-North Texas Boulevard Roundabout 268,344 100,193 1,891,555
TxDot-Sycamore-Welch Bicycle & Pedestrian - 126,560 1,500,000
NCTCOG-Waze Data Sharing - - 5,000
Airport Grant-CARES Act 157,000 - 157,100
Airport Coronavirus Relief Grant Program 57,000 - 57,000
Airport Coronavirus Relief Grant Program - - 34,162
Denton County Transportation Authority (DCTA)
Transportation Reinvestment Program (TRiP) - - 2,517,997
American Rescue Plan (ARP) Act of 2021 - Airport
Rescue Grants - - 148,000
Transportation1 94,781,052 2,703,590 44,474,347
City of Denton
Grants
Schedule of Expenditures (Unaudited)
For the Period Ended June 30, 2022
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20211
CURRENT
Y-T-D
ANNUAL
BUDGET
Interlibrary Loan Program (ILL) - - 35,000
TexTreasures Grant - 24,820 24,820
Green Ribbon Grant - 460,556 773,666
Texas Commission on the Arts Cultural District Grant - - 100,000
NCTCOG-Solid Waste Implementation Grant-Parks
& Recreation - - 200,000
NCTCOG-Solid Waste Implementation Grant-Solid
Waste - - 67,723
Governor's Community Achievement Award - - 290,000
American Rescue Plan (ARP) Act of 2021 6,136 5,147,115 23,290,438
Miscellaneous New Grants - - 460,000
Other 6,136 5,632,491 25,241,647
Total FY 2021-22 Budget 108,558,855 10,820,492 79,507,005
New Awards
Chapter 59 Asset Forfeitures - 8,150 8,150
U.S. Marshals Violent Offenders Task Force - 59,411 59,411
North Texas Organized Crime Task Force (NTOCTF)- 7,919 7,919
PD-Law Enforcement Officer Standards & Education - 21,785 21,785
U.S. Immigration & Customs Enforcement Homeland
Security Investigations - 1,659 1,659
Texas Intrastate Fire Mutual Aid System-Emergency
Response - 3,749 3,749
2021-SHSP-EOD Protective Suit - 40,864 40,864
2020 Staffing for Adequate Fire & Emergency
Response (SAFER) Grant - 99,311 99,311
Public Safety - 242,848 242,848
TxDot-CMAQ-School Connection Sidewalks - 75,520 75,520
TxDot-Safe Routes to School-Ginnings Elementary
School & Lee Elementary School - 108,400 108,400
Transportation1 - 183,920 183,920
Total New Awards - 426,768 426,768
TOTALS 108,558,855$ 11,247,260$ 79,933,773$
1 A portion of the grants presented cover multiple years.
Section 3
City of Denton
Quarterly Financial Report
June 2022
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, 2022
Gross Domestic Product (GDP)
The initial reading of Q2 GDP showed an
unexpected contraction of -0.9%. When combined
with the -1.6% decline in the first quarter, the
textbook definition of recession has been met. It
doesn’t become official until the National Bureau of
Economic Research (NBER) says so, but at this point
a case can be made. Personal consumption held up
reasonably well, up +1.0% for the second quarter
following a +1.8% increase in the previous period
and adding 0.7 to the overall Q2 number. Private
investment plunged, subtracting a whopping 2.7
points while business inventories subtracted two
full percentage points. The recession debate will
play out in the media in the weeks and months to
come, but there’s no denying the magnitude of
weakening. On a year-over-year basis, GDP has
slowed from +5.5% in the fourth quarter of 2021, to
+3.5% in Q1 to +1.6% in Q2.
Employment
Non-farm payrolls increase by +372k in June, while
net revisions to previous months subtracted -74k.
At this point, company payrolls are now just -524k
below the pre-pandemic high point. The
breakdown of the company survey shows private
payrolls are now +140k higher than in February
2020, while government payrolls are still -664k
short. The separate household survey was less
positive with a -315k decrease in the number of
Americans finding work, while -350k exited the
workforce. The net result held the unemployment
rate steady at +3.6%. The number actively seeking
work was little changed at 5.9 million. Another 5.7
million would like a job but had not looked for
work within the past month and as a result are not
considered part of the labor force. This total is
+700k above the pre-pandemic count and
continues to puzzle labor market analysts.
Inflation
Inflationary pressure continues to rise despite Fed
tightening. The consumer price index (CPI) jumped
+1.3% month-over-month in June, bettering
forecasts with the largest single month increase in 17
years. On a year-over-year basis, overall CPI was
rising at a +9.1% pace, the hottest consumer inflation
in more than 41 years. The June increase was broad-
based, with gas, food, and shelter costs all rising
sharply. The energy index surged +7.5%, contributing
almost half of the June increase. Within the energy
component, the price of gasoline jumped +11.2%.
Food prices rose +1.0% for the month and +10.4%
year-over-year, the largest annual gain since 1981.
Core CPI, which excludes food and energy prices,
rose +0.7% (also above forecast) and is now
increasing at a +5.9% annual rate, although the core
has actually fallen on a year-over-year basis in each
of the last three months.
Retail Sales
Retail sales rose +1.0% in June, bettering the +0.7%
median forecast, as spending on gasoline, autos,
restaurants, and e-commerce all increased. Gas
station sales were the biggest contributor to the
overall number, up +3.6% following a +5.6% rise in
May. This category accounted for 0.4 of the +1.0% gain
in June. Since sales are not inflation-adjusted, the jump
in gasoline sales is a direct reflection of soaring pump
prices. On a year-over-year basis, retail sales are +8.4%
higher, but on a three-month annualized basis, sales
are up +9.5%. Much of the increase can be attributed
to the highest inflation rate in decades. In real terms,
retail sales declined for the second consecutive month,
falling -0.3%. As long as the economy is growing, Fed
officials will have complete latitude to slow it down
with aggressive rate hikes. However, monetary policy
will be enacted on a meeting-by-meeting basis and
signs of weakness are already present in the economy.
Denton County and Texas Home Sales
Texas home sales jumped +23.3% in the second quarter of 2022 but were down -5.6% over the same three-month period a
year ago. The average sales price in June was $440.7k, roughly +44% above the same period in 2019 and slightly below the
highest on record established the previous month. The available inventory climbed to 2.1 months at the end of the quarter,
the highest since October 2020. Total listings at 71k, are the highest since August 2020 and almost twice the level from the
previous quarter.
In Denton County, unit home sales rose +41.3% in the second quarter but were -6.2% lower on a year-over-year basis. The
available supply improved significantly from extreme record lows, tripling from 0.6 months to 1.9 months during the quarter,
while total listings jumped from 831 to 2,488, the highest in nearly two years. The average sales price in June was $571k,
slightly below the all-time high of $587k logged in May, but more than 50% higher than in June of 2020.
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
Fuel Prices Outlook Negative
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 26.8%increase from the prior quarter at the national level
and a 32.8% increase at the state level. Staff has rated this outlook as Negative.
Source: U.S. Department of Energy
$0
$2
$4
$6
$8
$10
$12
$14
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
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
1Q
'22
2Q
'22
3Q
'22 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 2021-22 shows an increase of 12.4 for a 4.22%increase over the prior quarter and an
increase of 33.9 for a 12.4% increase over the 3rd Quarter of 2020-21. Staff has rated this indicator as Negative.
Source: American City and County Magazine
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.
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
3rd Quarter FY 2021-22
Actual Y-T-D
Occupancy Tax Revenue:958,757$ 2,651,058$
FY 2021-22 Budget 837,255$ 1,929,835$
Over (Under) Budget 121,502$ 721,223$
Hotel Occupancy Tax Budget:2,875,354$
3,515,915$
Variance:640,561$
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 2022 was 16.02%more than budget and 21%more than the
prior year's actual.Hotel receipts continue to increase to higher than pre COIVD-19 pandemic levels.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
$900,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Sales and Use Tax Analysis Outlook Positve
3rd Quarter FY 2021‐22
Actuals Y‐T‐D
Revenue: Gross Sales Tax
Municipal Operations 484,122$ 1,392,025$
General Retail & Others 13,020,710 38,765,252
Comptroller Fees (255,167) (760,289)
Amount Retained (250,064) (745,083)
Total Revenue 12,999,600$ $38,651,905
Expenses: Economic Incentives*
Economic Incentives1 821,022$ 2,249,108$
Net Total 12,178,578 36,402,797
FY 2021‐22 Budget 11,535,962 36,763,238
Over(Under) Budget 642,616$ (360,440)$
Sales Tax Budget: 46,246,938$
Year End Projection: 51,992,420
Variance to Original Budget: 5,745,482$
Economic Development Expenditure Budget: 2,576,743$
Year End Projection: 2,937,184
Variance to Original Budget: 360,441$
* Economic Incentive actuals are through June 2022
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 2022 compared to revenues from
the prior year 3rd quarter shows a 12.08% increase; and compared to the budget, it is 5.57% above. Staff has rated this
indicator as Positive.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
1234
Gross Sales Tax Collections (Millions)
FY 2018‐19 Actual FY 2019‐20 Actual FY 2020‐21 Actual FY 2021‐22 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 2012 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,
zoning, 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 31.25%from the prior quarter and decreased 40.43%
from the third Quarter of 2021. Staff has rated the outlook for this revenue indicator as Negative.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
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3Q
'18
4Q
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'19
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3Q
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'21
2Q
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3Q
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4Q
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1Q
'22
2Q
'22
3Q
'22
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 28.86%from the prior quarter and increased 5.3%from the 3rd
Quarter of 2021. 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
2Q
'17
3Q
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4Q
'17
1Q
'18
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3Q
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'19
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'21
4Q
'21
1Q
'22
2Q
'22
3Q
'22
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 .32%from the prior quarter and
increased 7.47% from the third Quarter of 2021. Staff has rated this indicator as positive.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
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 3.07%for the 3rd Quarter.
Since this is a decrease over the prior year's quarter rate, staff has rated the outlook indicator as Positive.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
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.
0.0
5.0
10.0
15.0
20.0
25.0
Unemployement Rate Index
Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States
Section 4
City of Denton
Quarterly Financial Report
June 2022
INVESTMENT REPORT
3rd Fiscal Quarter Ending June 30, 2022 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max. Benchmark
Portfolio: Value Value Value Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 656,943,844$ 653,540,415$ 655,280,824$ (1,740,408)$ 201 550 1.20% 2.65%
*Market yield on U.S. Treasury securities at
1-year constant maturity, quoted on
investment basis % 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 335,000,000$ 332,422,735$ 333,987,990$ (1,565,255)$ 283 1.42% 50.97% 100.00%
U.S. Federal Agencies 92,300,000$ 91,779,177$ 91,819,835$ (40,658)$ 331 1.96% 14.01% 100.00%
U.S. Federal Agencies - Callable 10,000,000$ 9,964,326$ 10,000,000$ (35,674)$ 328 2.50% 1.53% 20.00%
Municipal Bonds -$ -$ -$ -$ - - 0.00% 15.00%
Certificates of Deposit -$ -$ -$ -$ - - 0.00% 35.00%
Commercial Paper 25,000,000$ 24,730,333$ 24,829,153$ (98,821)$ 140 1.68% 3.79% 15.00%
Local Government Investment Pools 137,775,270$ 137,775,270$ 137,775,270$ -$ 1 0.33% 21.03% 50.00%
Demand Deposits 56,868,575$ 56,868,575$ 56,868,575$ -$ 1 0.32% 8.68% -
Total Portfolio 656,943,844$ 653,540,415$ 655,280,824$ (1,740,409)$ 201 1.20% 100.00%-
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons: 6/30/2022 3/31/2022 Difference 6/30/2021
Par Value 656,943,844$ 669,618,310$ (12,674,466)$ 544,831,766$
Market Value 653,540,415$ 668,810,986$ (15,270,571)$ 546,469,950$
Book Value 655,280,824$ 669,801,992$ (14,521,169)$ 545,406,594$
Unrealized Gain(Loss) (1,740,408)$ (991,006)$ (749,402)$ 1,063,356$
Weighted Average Maturity 201 101 100 85
Yield to Maturity 1.20% 0.39% 0.81% 0.38%
Portfolio Composition:
U.S. Treasuries 50.97% 36.61% 14.36% 16.37%
U.S. Federal Agencies 14.01% 7.47% 6.54% 20.67%
U.S. Agencies - Callable 1.53% 0.00% 1.53% 0.00%
Municipal Bonds 0.00% 0.00% 0.00% 1.84%
Certificates of Deposit 0.00% 0.00% 0.00% 0.00%
Commercial Paper 3.79% 5.22% -1.43% 13.75%
Local Government Investment Pools 21.03% 40.72% -19.70% 42.26%
Demand Deposits 8.68% 9.98% -1.30% 5.11%
Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 78,644,526$ 56,868,575$ > 102%138.29%
**Does not include FDIC insurance
Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 45,487,828$ 209,866,548$ 33,562,945$
Wells Fargo Bank ARPA Funds 11,658,743$ 11,646,887$ 23,305,630$
Compliance Statement & Review:
116
0.82%
-1.84%
107,070,466$
109,874,230$
(2,803,764)$
34.60%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
112,112,079$
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 berealized.
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: Cassandra Ogden
-6.66%
0.00%
3.57%
Pledge Required
-9.96%
-21.23%
-$
1.53%
(221,791,430)$
Controller
Reviewer:
Chief Financial Officer Assistant Director of Finance
Reviewer: Nicholas Vincent
Preparer: Randee Klingele
Treasury Manager
Vacant
3rd Fiscal Quarter Ending June 30, 2022 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
6/30/2022 3/31/2022 Difference 6/30/2021 Difference
Par Value - U.S. Treasuries 335,000,000$ 245,000,000$ 90,000,000$ 89,000,000$ 246,000,000$
Par Value - U.S. Federal Agencies 92,300,000$ 50,000,000 42,300,000 112,500,000 (20,200,000)
Par Value - U.S. Federal Agencies - Callable 10,000,000$ - 10,000,000 - 10,000,000
Par Value - Municipal Bonds -$ - - 10,000,000 (10,000,000)
Certificates of Deposit -$ - - - -
Par Value - Commercial Paper 25,000,000$ 35,000,000 (10,000,000) 75,000,000 (50,000,000)
Local Government Investment Pools 137,775,270$ 272,775,270 (135,000,000) 230,478,678 (92,703,408)
Demand Deposits 56,868,575$ 66,843,040 (9,974,466) 27,853,088 29,015,487
Total Par Value 656,943,844$ 669,618,310$ (12,674,466)$ 544,831,766$ 112,112,079$
Market Value - U.S. Treasuries 332,422,735$ 244,236,565$ 88,186,170$ 89,344,640$ 243,078,095$
Market Value - U.S. Federal Agencies 91,779,177$ 50,048,326$ 41,730,851 113,742,774 (21,963,597)
Market Value - U.S. Federal Agencies - Callable 9,964,326$ -$ 9,964,326 - 9,964,326
Market Value - Municipal Bonds -$ -$ - 10,060,000 (10,060,000)
Certificates of Deposit -$ -$ - - -
Market Value - Commercial Paper 24,730,333$ 34,907,785$ (10,177,453) 74,990,770 (50,260,438)
Local Government Investment Pools 137,775,270$ 272,775,270$ (135,000,000) 230,478,678 (92,703,408)
Demand Deposits 56,868,575$ 66,843,040$ (9,974,466) 27,853,088 29,015,487
Total Market Value 653,540,415$ 668,810,986$ (15,270,571)$ 546,469,950$ 107,070,465$
Book Value - U.S. Treasuries 333,987,990$ 245,196,061$ 88,791,929$ 89,268,528$ 244,719,462.19$
Book Value - U.S. Federal Agencies 91,819,835$ 50,031,323$ 41,788,512 112,761,592 (20,941,757)
Book Value - U.S. Federal Agencies - Callable 10,000,000$ -$ 10,000,000 - 10,000,000
Book Value - Municipal Bonds -$ -$ - 10,058,018 (10,058,018)
Certificates of Deposit -$ -$ - - -
Book Value - Commercial Paper 24,829,153$ 34,956,298$ (10,127,144) 74,986,690 (50,157,536)
Local Government Investment Pools 137,775,270$ 272,775,270$ (135,000,000) 230,478,678 (92,703,408)
Demand Deposits 56,868,575$ 66,843,040$ (9,974,466) 27,853,088 29,015,487
Total Book Value 655,280,824$ 669,801,992$ (14,521,169)$ 545,406,594$ 109,874,230$
Accrued Interest 1,083,307$ 434,922$ 648,385$ 1,256,967$ (173,660)$
Cash Value -654,623,722$ 669,245,908$ (14,622,186)$ 547,726,917$ 106,896,806$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)1 (1,740,408)$ (991,006)$ (749,402)$ 1,063,356$ (2,803,764)$
Strategy Statement:
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
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.
The investment portfolio 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) attainthe
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.
3rd Fiscal Quarter Ending June 30, 2022 Page 3
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 6/30/2022 3/31/2022 6/30/2021
U.S. Treasuries 333,987,990$ 245,196,061$ 89,268,528$
U.S. Federal Agencies 91,819,835 50,031,323 112,761,592
U.S. Federal Agencies - Callable 10,000,000 - -
Municipal Bonds - - 10,058,018
Certificates of Deposit - - -
Commercial Paper 24,829,153 34,956,298 74,986,690
Local Government Investment Pools 137,775,270 272,775,270 230,478,678
Demand Deposits 56,868,575 66,843,040 27,853,088
Total Book Value 655,280,824$ 669,801,992$ 545,406,594$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 6/30/2022 3/31/2022 6/30/2021
U.S. Treasuries 50.97% 36.61% 16.37%
U.S. Federal Agencies 14.01% 7.47% 20.67%
U.S. Federal Agencies - Callable 1.53% 0.00% 0.00%
Municipal Bonds 0.00% 0.00% 1.84%
Certificates of Deposit 0.00% 0.00% 0.00%
Commercial Paper 3.79% 5.22% 13.75%
Local Government Investment Pools 21.03% 40.72% 42.26%
Demand Deposits 8.68% 9.98% 5.11%
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); 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
50.97%
U.S.FederalAgencies
14.01%
U.S.FederalAgenciesͲCallable
1.53%
CommercialPaper
3.79%
LocalGovernmentInvestmentPools
21.03%
DemandDeposits
8.68%6/30/2022
3rd Fiscal Quarter Ending June 30, 2022 Page 4
INVESTMENT POOL
(Based on Book Value)
Current 3 Months Ago 1 Year Ago
Summary By Issuer: 6/30/2022 3/31/2022 6/30/2021
FFCB 37,056,477$ 24,998,810$ 72,508,461$
FHLB 59,869,713 20,032,692 25,187,744
FHLMC - 4,999,821 4,999,102
FNMA 4,893,645 - 10,066,285
BAYLOR SCOTT - - 9,998,889
JOHNS HOPKINS UNIVERSITY - 10,000,000 9,999,645
RBC 17,425,697 17,456,954 9,990,036
STATE OF CALIFORNIA - - 20,000,000
STATE OF TEXAS - - 10,058,018
TEXPOOL 100,000,000 150,000,000 115,000,000
TEXSTAR 37,775,270 122,775,270 115,478,678
TOYOTA MOTOR CREDIT CORP 7,403,456 7,499,344 9,998,819
U.S. TREASURY 333,987,990 245,196,061 89,268,528
UNIVERSITY OF TEXAS - - 14,999,300
WELLS FARGO DEMAND DEPOSITS 56,868,575 66,843,040 27,853,088
Total Book Value 655,280,824$ 669,801,992$ 545,406,594$
Summary By Issuer: 6/30/2022 3/31/2022 6/30/2021
FFCB 5.66% 3.73% 13.29%
FHLB 9.14% 2.99% 4.62%
FHLMC 0.00% 0.75% 0.92%
FNMA 0.75% 0.00% 1.85%
BAYLOR SCOTT 0.00% 0.00% 1.83%
JOHNS HOPKINS UNIVERSITY 0.00% 1.49% 1.83%
RBC 2.66% 2.61% 1.83%
STATE OF CALIFORNIA 0.00% 0.00% 3.67%
STATE OF TEXAS 0.00% 0.00% 1.84%
TEXPOOL 15.26% 22.39% 21.09%
TEXSTAR 5.76% 18.33% 21.17%
TOYOTA MOTOR CREDIT CORP 1.13% 1.12% 1.83%
U.S. TREASURY 50.97% 36.61% 16.37%
UNIVERSITY OF TEXAS 0.00% 0.00% 2.75%
WELLS FARGO DEMAND DEPOSITS 8.68% 9.98% 5.11%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value and to those offering repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. The purpose of this
requirement is to limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no issuer limitations on U.S. Treasuries or FDIC insured products except as they pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some investment types may be further limited.
FFCB
5.66%FHLB
9.14%
FNMA
0.75%
RBC
2.66%
TEXPOOL
15.26%
TEXSTAR
5.76%
TOYOTAMOTORCREDIT
CORP
1.13%
U.S.TREASURY
50.97%
WELLSFARGODEMAND
DEPOSITS
8.68%
3rd Fiscal Quarter Ending June 30, 2022 Page 5
INVESTMENT POOL
(Based on Par Value)
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 6/30/2022 3/31/2022 6/30/2021
00-03 Months 294,643,844$ 414,618,310$ 388,331,766$
03-06 Months 60,000,000 100,000,000 66,500,000
06-12 Months 147,300,000 125,000,000 50,000,000
12-24 Months 155,000,000 30,000,000 30,000,000
24 Months & Over - - 10,000,000
Total Par Value 656,943,844$ 669,618,310$ 544,831,766$
12/31/2019
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 6/30/2022 3/31/2022 6/30/2021
00-03 Months 44.85% 61.92% 71.28%
03-06 Months 9.13% 14.93% 12.21%
06-12 Months 22.42% 18.67% 9.18%
12-24 Months 23.59% 4.48% 5.51%
24 Months & Over 0.00% 0.00% 1.84%
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
$750,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
3rd Fiscal Quarter Ending June 30, 2022 Page 6
ECONOMIC SUMMARY
Interest Rate History
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
Market Sector:*Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90% 2.15% 2.40% 2.41% 2.37% 1.90%
3-Month U.S. T-Bill 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92% 2.20% 2.36% 2.39% 2.09% 1.82%
2-Year U.S. T-Note 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53% 2.57% 2.49% 2.26% 2.10% 1.76%
Portfolio Benchmark (FRB) 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75% 2.05% 2.33% 2.48% 2.00% 1.80%
Portfolio Yield 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73% 2.01% 2.20% 2.20% 2.08%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
Market Sector:*Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 1.56% 0.02% 0.08% 0.09% 0.08% 0.06% 0.05% 0.05% 0.07%0.32% 1.56%
3-Month U.S. T-Bill 1.55% 0.09% 0.14% 0.10% 0.07% 0.02% 0.04% 0.04% 0.04%0.50% 1.67%
2-Year U.S. T-Note 1.57% 0.25% 0.15% 0.13% 0.12% 0.15% 0.25% 0.21% 0.38%1.61% 2.96%
Portfolio Benchmark (FRB) 1.55% 0.33% 0.18% 0.13% 0.12% 0.08% 0.07% 0.08% 0.30%1.34% 2.65%
Portfolio Yield 1.96% 1.62% 1.31% 0.94% 0.80% 0.45% 0.38% 0.24% 0.17%0.39% 1.20%
*Source: Hilltop Securities
*1yr const mty.
Fiscal Year:
2021-2022
2020-2021
2019-2020
2018-2019
2017-2018
QUARTERLY COMMENTARY
Staff Analysis
9,330,232$ 7,751,129$ 5,750,008$
2nd Quarter 3rd Quarter 4th Quarter
The portfolio is in compliance with the City's Investment Policy. During the third quarter nine investments matured totaling $82.5
million and nineteen investments were purchased totaling $214.8 million. The portfolio's weighted average yield lagged the
benchmark 12-month Treasury bill index by 145 basis points. This benchmark lag is due to a sudden spike in short-term rates
caused by Fed tightening during the April - June months. The Investments and deposits with daily liquidity was 29.6%. This period
the Fed raised the target range for the federal funds rate three times, 25 bp's, 50 bp's, and 75 bp's. They also initated their
planned reduction of reinvestment in their bond holdings. Staff will continue to monitor the investment portfolio and ensure
compliance with the City's Investment Policy and the Public Funds Investment Act.
Fiscal Year 2019-2020
2,955,835$ 12,354,692$
6,515,166$ 8,955,045$ 2,138,420$ 4,317,890$
3 Months 6 Months 9 Months 12 Months
1,324,344$ 2,332,128$ 2,937,508$ 3,413,936$
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2016-2017 Fiscal Year 2017-2018
Fiscal Year-to-Date Earnings
Fiscal Year 2018-2019
Fiscal Year 2020-2021 Fiscal Year 2021-2022
6,122,536$ 9,262,499$
2,982,157$
388,020$
1st Quarter
753,874$ 1,884,695$
0.00%
1.00%
2.00%
3.00%
4.00%
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 Dec-21 Mar-22 Jun-22
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2016-17 FY 2017-18 FY 2018-19 FY 2020-21 FY 2021-22FY 2019-20
Days to
Maturity
Page 1
Par Value Book Value Maturity
Date
Stated
RateMarket Value
June 30, 2022
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Treasury Securities - Coupon
45U.S. TREASURY4105 10,000,000.00 10,017,537.25 08/15/20221.50006/11/2021 10,000,630.00 0.078912828YA2
14U.S. TREASURY4114 10,000,000.00 10,006,447.53 07/15/20221.75007/28/2021 10,002,060.00 0.0699128287C8
61U.S. TREASURY4116 20,000,000.00 20,001,556.61 08/31/20220.12507/29/2021 19,952,240.00 0.07891282CAG6
76U.S. TREASURY4117 20,000,000.00 20,058,656.17 09/15/20221.50007/29/2021 19,993,080.00 0.089912828YF1
45U.S. TREASURY4124 10,000,000.00 10,017,527.32 08/15/20221.50009/03/2021 10,000,630.00 0.078912828YA2
122U.S. TREASURY4125 5,000,000.00 5,000,521.78 10/31/20220.12509/15/2021 4,967,055.00 0.09491282CAR2
137U.S. TREASURY4126 10,000,000.00 10,057,100.40 11/15/20221.62509/23/2021 9,975,000.00 0.101912828TY6
167U.S. TREASURY4127 10,000,000.00 10,067,085.00 12/15/20221.62510/18/2021 9,964,450.00 0.156912828YW4
229U.S. TREASURY4128 10,000,000.00 10,073,038.02 02/15/20231.37510/18/2021 9,920,700.00 0.206912828Z86
257U.S. TREASURY4132 10,000,000.00 10,002,830.97 03/15/20230.50012/09/2021 9,844,920.00 0.460912828ZD5
229U.S. TREASURY4134 20,000,000.00 20,114,828.08 02/15/20232.00003/03/2022 19,918,760.00 1.077912828UN8
167U.S. TREASURY4135 10,000,000.00 10,031,821.65 12/15/20221.62503/03/2022 9,964,450.00 0.924912828YW4
214U.S. TREASURY4136 20,000,000.00 19,893,880.99 01/31/20230.12503/03/2022 19,715,620.00 1.03791282CBG5
242U.S. TREASURY4137 20,000,000.00 19,860,606.46 02/28/20230.12503/11/2022 19,663,280.00 1.18591282CBN0
288U.S. TREASURY4139 20,000,000.00 19,781,976.74 04/15/20230.25003/24/2022 19,594,540.00 1.649912828ZH6
229U.S. TREASURY4140 20,000,000.00 19,969,696.66 02/15/20231.37504/14/2022 19,841,400.00 1.619912828Z86
349U.S. TREASURY4144 10,000,000.00 9,804,573.97 06/15/20230.25005/05/2022 9,749,610.00 2.332912828ZU7
379U.S. TREASURY4146 10,000,000.00 9,783,735.45 07/15/20230.12506/02/2022 9,715,620.00 2.244912828ZY9
700U.S. TREASURY4148 10,000,000.00 9,865,378.75 05/31/20242.50006/14/2022 9,917,970.00 3.23191282CER8
410U.S. TREASURY4151 20,000,000.00 19,891,445.41 08/15/20232.50006/22/2022 19,895,320.00 2.993912828VS6
594U.S. TREASURY4153 10,000,000.00 9,936,124.07 02/15/20242.75006/22/2022 9,971,880.00 3.155912828B66
487U.S. TREASURY4154 10,000,000.00 9,980,588.33 10/31/20232.87506/28/2022 9,994,920.00 3.0239128285K2
517U.S. TREASURY4155 10,000,000.00 9,978,639.58 11/30/20232.87506/28/2022 9,993,750.00 3.0299128285P1
594U.S. TREASURY4156 20,000,000.00 19,901,279.84 02/15/20242.75006/28/2022 19,943,760.00 3.063912828B66
669U.S. TREASURY4157 10,000,000.00 9,891,113.28 04/30/20242.50006/28/2022 9,921,090.00 3.11591282CEK3
333,987,990.31 1.423332,422,735.00335,000,000.00278,242,029.74Subtotal and Average 283
Federal Agency Issues - Coupon
416FFCB401310,000,000.00 9,999,772.22 08/21/20232.57002/21/2019 9,962,992.90 2.5723133EKAU0
77FFCB410610,000,000.00 9,999,896.67 09/16/20220.08006/16/2021 9,966,160.00 0.0853133EMK68
342FFCB41457,300,000.00 7,175,617.34 06/08/20230.30005/23/2022 7,123,990.87 2.1503133ELG81
710FFCB414910,000,000.00 9,881,190.46 06/10/20242.62506/16/2022 9,929,834.90 3.2623133ENYH7
4FHLB406710,000,000.00 10,001,395.90 07/05/20221.95503/16/2020 10,000,486.50 0.0693130ABCY0
25FHLB411510,000,000.00 9,999,975.69 07/26/20220.07007/29/2021 9,988,428.90 0.0743130ANEU0
434FHLB415220,000,000.00 19,833,509.17 09/08/20232.37506/22/2022 19,882,901.60 3.0943130A3DL5
525FHLB415810,000,000.00 10,034,832.63 12/08/20233.37506/30/2022 10,056,784.30 3.1243130A0F70
Portfolio CITY
APData Updated: SET_MO: 07/13/2022 09:16
Run Date: 07/13/2022 - 09:17 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, 2022
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
Federal Agency Issues - Coupon
374FNMA41475,000,000.00 4,893,645.30 07/10/20230.25006/08/2022 4,867,597.20 2.3643135G05G4
91,819,835.38 1.96091,779,177.1792,300,000.0063,316,432.51Subtotal and Average 331
Federal Agency Issue-Step-Up
328FHLB414310,000,000.00 10,000,000.00 05/25/20232.00005/27/2022 9,964,326.20 2.5003130ARYL9
10,000,000.00 2.5009,964,326.2010,000,000.0010,000,000.00Subtotal and Average 328
Commercial Paper Disc. - Amortizing
116RBC413310,000,000.00 9,976,155.56 10/25/20220.74001/31/2022 9,915,560.00 0.76278009BKR2
140RBC41417,500,000.00 7,449,541.67 11/18/20221.73004/19/2022 7,417,365.00 1.79978009BLJ9
171TOYOTA MOTOR CREDIT4150 7,500,000.00 7,403,456.25 12/19/202206/22/2022 7,397,407.50 2.78589233HMK7
24,829,153.48 1.67624,730,332.5025,000,000.0024,636,556.95Subtotal and Average 140
Commercial Paper - Interest Bearing
5,000,000.00Subtotal and Average
Local Govt Investment Pools
1LOCAL GOVT INV POOL - TEXPOOL3996 100,000,000.00 100,000,000.00 0.013100,000,000.00 0.013SYS3996
1LOCAL GOVT INV POOL - TEXSTAR3641 37,775,269.64 37,775,269.64 1.16537,775,269.64 1.165SYS3641
137,775,269.64 0.329137,775,269.64137,775,269.64212,275,269.64Subtotal and Average 1
Demand Deposits
1DEMAND DEPOSITS - WELLS FARGO3706 33,562,944.94 33,562,944.94 0.32033,562,944.94 0.320SYS3706
1DEMAND DEPOSITS - WELLS FARGO4082 0.00 0.0010/01/2021 0.00 0.000SYS4082
1DEMAND DEPOSITS - WELLS FARGO4104 23,305,629.84 23,305,629.84 0.32023,305,629.84 0.320SYS4104
56,868,574.78 0.32056,868,574.7856,868,574.7859,759,493.49Subtotal and Average 1
1.198653,229,782.33 656,943,844.42 201653,540,415.29 655,280,823.59Total and Average
Portfolio CITY
APData Updated: SET_MO: 07/13/2022 09:16
Run Date: 07/13/2022 - 09:17 PM (PRF_PM2) 7.3.0
Days to
Maturity
Page 3
Par Value Book Value Stated
RateMarket Value
June 30, 2022
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Monthly Reports
YTM
365CUSIPInvestment #Purchase
Date
0.00
1.198653,229,782.33 656,943,844.42 201
0Average Balance
653,540,415.29 655,280,823.59Total Cash and Investments
Portfolio CITY
APData Updated: SET_MO: 07/13/2022 09:16
Run Date: 07/13/2022 - 09:17 PM (PRF_PM2) 7.3.0