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Agenda Packet 04/11/2023 SupplementalTown of Trophy Club Meeting Agenda Packet Town Council 1 Trophy Wood Drive Trophy Club, Texas 76262 April 11, 2023 7:00 PM Council Chambers CALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor Fleury INVOCATION led by Pastor Joel Quile, Bara Church  PLEDGES led by Council Member Monger Pledge of Allegiance to the American Flag. Pledge of Allegiance to the Texas Flag. PUBLIC COMMENT(S) This is an opportunity for citizens to address the Council on any matter. The Council is not permitted to discuss or take action on any presentations made. Presentations are limited to matters over which the Council has authority. Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email mayorandcouncil@trophyclub.org ANNOUNCEMENTS AND REPORTS CONSENT AGENDA 1.Item No. 8 Resolution 2023­02 was not included in original agenda packet. 2.Item #7 – Corrected Investment Report INDIVIDUAL ITEMS EXECUTIVE SESSION RECONVENE INTO REGULAR SESSION ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. One or more members of the Town Council may participate remotely using video conference pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on INSERT DATE by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Anita Otterson Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 1 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262April 11, 2023 7:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor FleuryINVOCATION led by Pastor Joel Quile, Bara Church PLEDGES led by Council Member MongerPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter. The Councilis not permitted to discuss or take action on any presentations made. Presentationsare limited to matters over which the Council has authority. Speakers have up to four(4) minutes or the time limit determined by the Presiding Officer. Each speaker musthave submitted their request to speak by completing the Speaker’s Form or mayemail mayorandcouncil@trophyclub.orgANNOUNCEMENTS AND REPORTSCONSENT AGENDA1.Item No. 8 Resolution 2023­02 was not included in original agenda packet.2.Item #7 – Corrected Investment Report INDIVIDUAL ITEMS EXECUTIVE SESSION RECONVENE INTO REGULAR SESSION ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. One or more members of the Town Council may participate remotely using video conference pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on INSERT DATE by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Anita Otterson Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 2 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2023-02 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS APPROVAL OF HAZARD MITIGATION ACTION PLAN FOR THE TOWN OF TROPHY CLUB, TEXAS AND TO AUTHORIZE THE MAYOR OR HIS DESIGNEE TO TRANSMIT THIS RESOLUTION TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY. WHEREAS, natural hazards in the Town of Trophy Club area historically have significant disasters with losses of life and property and natural resources damage; and WHEREAS, the Federal Disaster Mitigation Act of 2000 and Federal Emergency Management Agency (FEMA) require communities to adopt a hazard mitigation action plan to be eligible for the full range of pre-disaster and post- disaster federal funding for mitigation purposes; and WHEREAS, FEMA requires that communities update hazard mitigation action plans every five years in order to be eligible for the full range of pre-disaster and post-disaster federal funding for mitigation purposes; and WHEREAS, the Town of Trophy Club has assessed the community’s potential risks and hazards and is committed to planning for a sustainable co munity and reducing the long-term consequences of natural and man-caused hazards; and WHEREAS, the Denton County Hazard Mitigation Plan outlines a mitigation vision, goals, and objectives; assesses risk from a range of hazards; and identifies risk reduction strategies and actions for hazards that threaten the community; and WHEREAS, the Federal Emergency Management Agency (“FEMA”) has mandated that all towns have a FEMA-approved Hazard Mitigation Action Plan (“HMAP”), which HMAP is intended to identify natural hazards to which a town has been, or may be, exposed and to develop mitigation actions to counter the impacts of such hazards; NOW THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. The Denton County Hazard Mitigation Plan is approved in its entirety; Section 2. The Town of Trophy Club will pursue available funding opportunities for implementation of the proposals designated therein, and will upon receipt of such funding or other necessary resource, seek to implement the actions contained in the mitigation strategies; 3 RES 2015-35 Page 2 of 2 Section 3. The Town of Trophy Club vests with the Mayor the responsibility, authority, and means to inform all parties of this action; assure that the Hazard Mitigation Plan will be reviewed at least annually; and that any needed adjustments will be presented to the Town Council for consideration; and Section 4. The Town of Trophy Club to take such other action as may be reasonably necessary to carry out the objectives of the Plan and report on progress as required by FEMA and the Texas Division of Emergency Management (TDEM). PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 11th of April, 2023. Alicia L. Fleury, Mayor Town of Trophy Club, Texas ATTEST: [SEAL] Anita Otterson, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: David Dodd, Town Attorney Town of Trophy Club, Texas 4 QUARTERLY INVESTMENT REPORT For the Quarter Ended December 31, 2022 Prepared by Valley View Consulting, L.L.C. The inv Investm Trophy Club is in compliance with the Public Funds Investment Act and the ance C Disclaimer: These reports were compiled using information provided by the Town. No procedures were performed to test the accuracy or completeness of this information. The market values included in these reports were obtained by Valley View Consulting, L.L.C. from sources believed to be accurate and represent proprietary valuation. Due to market fluctuations these levels are not necessarily reflective of current liquidation values. Yield calculations are not determined using standard performance formulas, are not representative of total return yields, and do not account for investment advisor fees.5 Strategy Summary Quarter End Results by Investment Category: September 30, 2022 December 31, 2022 Asset Type Demand Accounts Money Markets/Local Gov't Investment Pools Totals Ave. Yield Book Value Market Value Ave. Yield Book Value Market Value 0.19% 2.92% 2.38% $4,492,738 17,959,215 22,451,953 $4,492,738 17,959,215 22,451,953 1.09% 4.24% 3.92% $2,600,407 23,372,007 25,972,414 $2,600,407 23,372,007 25,972,414$$$$ Current Quarter Average Yield (1)Fiscal Year-to-Date Average Yield (2) Total Portfolio 3.92%Total Portfolio 3.92% Rolling Three Month Treasury Rolling Six Month Treasury TexPool 4.19% 3.90% 3.98% Rolling Three Month Treasury Rolling Six Month Treasury TexPool 4.19% 3.90% 3.98% Interest Revenue (Approximate) Quarterly Interest Income $ Year-to-date Interest Income $ 175,213 175,213 (1) Current Quarter Average Yield - based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank, pool, and money market balances. (2) Fiscal Year-to-Date Average Yields - calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. 1Town of Trophy Club Valley View Consulting, L.L.C. 6 Economic Overview 12/31/2022 The Federal Open Market Committee (FOMC) raised the Fed Funds target range 0.50% to 4.25% - 4.50% December 14th (Effective Fed Funds are trading +/-4.33%). A 0.25% increase is projected February 1st. Third Quarter GDP jumped to 3.2% in the final number. December Non-Farm Payroll added 223k new jobs with the Three Month Average declining to 247k. Crude oil continues moderating at +/-$75 per barrel. The Stock Markets drifted between +/-15% to +/-19% below the 2021 peak. The yield curve is fully negatively sloped (3 months to 10 years, with peak yield at 6 months) and continues to indicate lower future interest rates. Inflation remained well over the FOMC 2% target (Core PCE +/-5% and CPI +/-6%). International challenges add to economic uncertainty. Treasury Yield Curves S&P 5006.00 5.00 4.00 3.00 2.00 1.00 0.00 5,250 5,000 4,750 4,500 4,250 4,000 3,750 3,500 3,250 3,000 2,750 2,5002,250 2,0001,7501,5001,250 1,000750500 250 0 December 31, 2021 September 30, 2022 December 31, 2022 US Treasury Historical Yields - Since 2006 US Treasury Historical Yields - Since Nov 20156.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Six Month T-Bill Two Year T-Note Ten Year T-Note Six Month T-Bill Two Year T-Note Ten Year T-Note 2Valley View Consulting, L.L.C. 7 Investment Holdings December 31, 2022 Coupon/ Maturity Settlement Book Value Market Price 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Market Value Life (days) YieldDescriptionRatings Discount 0.74% Date Date Par Value 1,525,246 1,002,229 72,931 Wells Fargo - Cash (3) PlainsCapital Bank - Cash PlainsCapital Bank ICS Sweep InterBank Money Market Account InterBank IntraFi MMA TexPool LGIP 01/01/23 12/31/22 01/01/23 12/31/22 01/01/23 12/31/22 01/01/23 12/31/22 01/01/23 12/31/22 01/01/23 12/31/22 01/01/23 12/31/22 $$1,525,246 1,002,229 72,931 249,904 11,968,148 8,619,763 2,534,192 $1,525,246 1,002,229 72,931 249,904 11,968,148 8,619,763 2,534,192 1 1 1 1 1 1 1 0.74% 1.41% 3.90% 4.36% 4.50% 3.98% 3.85% 1.41% 3.90% 4.36% 4.50% 249,904 11,968,148 8,619,763 2,534,192 AAAm AAAm 3.98% 3.85%TexasCLASS LGIP-Gov't $ 25,972,414 $ 25,972,414 $ 25,972,414 1 3.92% (1)(2) (1) Weighted average life - For purposes of calculating weighted average life, bank accounts, pools and money market funds are assumed to have an one day maturity. (2) Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank accounts, pools and money market funds. (3) Effective Blended Rate - Stated Earnings Credit Rate (0.70%) and GAIC Interest Rate (0.40%) adjusted for Balance Assessment fee and then calculated as a Weighted Average Yield. Valley View Consulting, L.L.C.Town of Trophy Club 3 8 Distribution by Maturity (Millions)Portfolio Composition MMA/MMF/LGIP 90%$30 $25 $20 $15 $10 $5 $0 Demand Accounts 10% Total Portfolio Performance Total Portfolio (Millions) 4.50 $30 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 $25 $20 $15 $10 $5 $0 TexPool Weighted Average Yield Rolling 6 Month T-Bill Quarter End Book Value 4Town of Trophy Club Valley View Consulting, L.L.C. 9 Book & Market Value Comparison Maturity Book Value Date 09/30/22 0.74% 01/01/23 $ 4,492,738 Book Value Market Value Change in Market Value 12/31/22 09/30/22 Market Value 12/31/22 $ (2,967,492) $ 1,525,246 $ 4,492,738 $ (2,967,492) $ 1,525,246 Issuer/Description Yield Increases Decreases Wells Fargo - Cash (3) PlainsCapital Bank - Cash PlainsCapital Bank ICS Sweep InterBank Money Market Account InterBank IntraFi MMA $– 1,002,229 72,931 1.41% 01/01/23 3.90% 01/01/23 4.36% 01/01/23 4.50% 01/01/23 3.98% 01/01/23 3.85% 01/01/23 – – – – – – – – 1,002,229 72,931 – – 1,002,229 72,931 1,002,229 72,931 249,558 11,852,950 3,343,517 2,513,191 346 249,904 249,558 11,852,950 3,343,517 2,513,191 346 249,904 115,198 5,276,246 21,002 11,968,148 8,619,763 2,534,192 115,198 5,276,246 21,002 11,968,148 8,619,763 2,534,192 TexPool LGIP TexasCLASS LGIP-Gov't TOTAL / AVERAGE 3.92%$ 22,451,953 $ 6,487,953 $ (2,967,492) $ 25,972,414 $ 22,451,953 $ 3,520,461 $ 25,972,414 5Town of Trophy Club Valley View Consulting, L.L.C. 10 Allocation December 31, 2022 Book & Market Value American Storm Drainage Utility Hotel Occupancy Tax Total General Fund Rescue Plan Debt Service Act EDC Wells Fargo - Cash $ 1,525,246 1,002,229 72,931 $(42,380) $ 1,362,961 $–$–$– – – – – $204,666 PlainsCapital Bank - Cash PlainsCapital Bank Sweep InterBank Money Market InterBank IntraFi MMA TexPool LGIP 1,002,229 72,931 – – – – – – ––– ––– 249,904 124,952 6,565,243 5,006,415 – ––– 11,968,148 8,619,763 2,534,192 – 1,450,986 – – 1,289,812 – – –872,550 –TexasCLASS LGIP-Gov't 2,125,087 Total $ 25,972,414 $ 12,729,390 $ 1,362,961 $ 1,450,986 $ 1,289,812 $872,550 $ 2,329,753 6Town of Trophy Club Valley View Consulting, L.L.C. 11 Allocation December 31, 2022 Book & Market Value Continued Parkland 2017 CO 2021 CO CIP FundsDedication Bond Funds Bond Funds Wells Fargo - Cash $–$–$–$– PlainsCapital Bank - Cash PlainsCapital Bank Sweep InterBank Money Market InterBank IntraFi MMA TexPool LGIP –––– –– 124,952 603,505 – –– ––– – – 3,986,383 813,019 – – – –TexasCLASS LGIP-Gov't 409,105 – Total $409,105 $728,457 $ 3,986,383 $813,019 7Town of Trophy Club Valley View Consulting, L.L.C. 12 Allocation September 30, 2022 Book & Market Value American Rescue Plan Debt Service Act Storm Drainage Utility Hotel Occupancy Tax General Fund Parkland DedicationTotalEDC Wells Fargo - Cash InterBank Money Market InterBank IntraFi MMA TexPool LGIP $ 4,492,738 $ 1,549,681 $ 2,905,552 $–$–$– – – $37,506 $– 249,558 11,852,950 3,343,517 2,513,191 124,779 6,502,149 1,092,855 – – – – – –––– – 107,302 – – 1,278,477 – – – – –864,883 –TexasCLASS LGIP-Gov't 2,107,476 405,715 Total $ 22,451,953 $ 9,269,463 $ 2,905,552 $107,302 $ 1,278,477 $864,883 $ 2,144,981 $405,715 8Town of Trophy Club Valley View Consulting, L.L.C. 13 Allocation September 30, 2022 Book & Market Value Continued 2017 CO Bond 2021 CO Bond CIP Funds Funds Funds Wells Fargo - Cash InterBank Money Market InterBank IntraFi MMA TexPool LGIP $– 124,779 847,545 – $–$– – 4,052,930 450,326 – – – –TexasCLASS LGIP-Gov't – Total $972,324 $ 4,052,930 $450,326 9Town of Trophy Club Valley View Consulting, L.L.C. 14