Agenda Packet TC 04/11/2017 - Supplemental Items
Supplemental Item
April 11, 2017
AGENDA ITEM NO. 3
Consider and take appropriate action regarding the First and Second Quarter
Investment Report for Fiscal Year 2017 (Staff).
To: Mayor and Town Council
From:Amber Karkauskas, Director of Finance
CC: Thomas Class, Sr., Town Manager
Holly Fimbres, Town Secretary
st
Re: Fiscal Year 2017 – 1 Quarter Investment Report -AMENDED
Town Council Meeting, April 11, 2017
Agenda Item:
st
Consider and take appropriate action regarding the 1 Quarter Investment Report for Fiscal
Year 2017 - AMENDED.
Explanation:
st
The previously submitted investment report for the 1 Quarter contained errors with respect to
summing of interest and ending balances of the CD portion of the report, as well as calculations
on the total life and yield under CDs and Total Cash and Investments. The actual beginning and
ending balances were verified as correct. Below is a true accounting of what transpired since
th
the 4 quarter of fiscal year 2016:
The Town’s current interest bearing accounts have an ending balance of $15,895,924.74 as of
December 31, 2016, which is an increase from$15,059,562.17 on October 1, 2016. The
increasecan be primarily attributed to property tax collections offset by bond proceeds
distributed related to Town Hall construction. Interest earnings for the quarter total
$28,703.68–which is an increase of $22,883.52or 493%from the first quarter investment
report in FY 2016. The first quarter investment earnings were from the following investments:
$173.62was earnedfrom an interest bearing accountat First Financial Bank, $1,403.08was
earned from investment accounts at TexPool, $1,643.86 was earned from investment accounts
at LOGIC, $24.17 was earned from investment account at First Public, $20,981.06 was earned
from investment accounts at Texas CLASS, $0.74 was earned on investment accounts with
Dryfus, and $4,477.15 was earned from Certificates of Deposit. The total average yield for the
first quarter was 0.75% which is 43% higher than the average 6-month Treasury-Bill yield of
0.56% for the same time period. The average yield for interest bearing accounts during the
quarter was 0.15% at First Financial, .41% at TexPool, 0.84% at LOGIC, 0.72% at First Public,
0.85% at Texas CLASS, 0.31% at Dryfus, and 0.94% on Certificates of Deposit. The Town’s
deposits at First Financial Bank and Comerica Bank are collateralized by government securities.
Attachments:
st
1 QTR 2017 Inv Report.pdf
Recommendation:
st
Staff recommends approval of the 1 Quarter Investment Report for Fiscal Year 2017.
TownofTrophyClub
QuarterlyInvestmentReport
FortheQuarterEndedDecember31,2016
FirstFinancialBank
BeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
FirstFinancialPooledCash609,990.02$$4,106,124.14$(4,406,327.40)$173.62$309,960.3810.15%
FirstFinancialTotals609,990.02$$4,106,124.14$(4,406,327.40)$173.62$309,960.38 10.15%
TexPoolBeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
TexPoolInterestandSinkingAccount150,541.23$$765,609.49$$296.19$916,446.9110.41%
TexPoolDesignatedAccount9,350.013,231,371.08(3,146,045.86)243.8694,919.0910.41%
TexPoolGrantFund99.8699.8610.41%
TexPool2010TaxNotes41,257.5442.9341,300.4710.41%
TexPoolUtilityDrainageAccount291,435.0831,938.44(38,259.60)289.58285,403.5010.41%
553,924.8210.41%
TexPoolEDC4BOperating458,569.8294,839.40515.60
TexPool2015COEDC4B14,257.6314.9214,272.5510.41%
TexPoolTotals965,511.17$$4,123,758.41$(3,184,305.46)$1,403.08$1,906,367.20 10.41%
LOGIC
BeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
LOGICDesignated1,159,046.00$$$(680,000.00)$1,643.86$480,689.8610.84%
LOGICTotals1,159,046.00$$$(680,000.00)$1,643.86$480,689.86 10.84%
FirstPublic
BeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
FirstPublicDesignated48,740.16(48,000.00)24.17764.3310.72%
FirstPublicTotals48,740.16$$$(48,000.00)$24.17$764.33 10.72%
TexasCLASS
BeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
TexasCLASS2016GO5,157,390.72$$$(1,227,937.82)$10,011.81$3,939,464.7110.85%
TexasCLASSDesignated224,695.893,227,937.82(1,177,790.22)907.202,275,750.6910.85%
TexasCLASSHotelOccupancy543,194.6977,790.221,217.69622,202.6010.85%
TexasCLASS2016CO4,136,584.898,844.364,145,429.2510.85%
FirstPublicTotals10,061,866.19$$3,305,728.04$(2,405,728.04)$20,981.06$10,982,847.25 10.85%
Dryfus
BeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
SweepMoneyMarketFund435.63$$1,443.94$(435.63)$0.74$1,444.6810.31%
DryfusTotals435.63$$1,443.94$(435.63)$0.74$1,444.68 10.31%
CertificatesofDepositBeginningEndingLife
InvestmentDescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
ComericaBank(GeneralFund)1,$009,855.84$$$1,808.56$1,011,664.401330.72%
SantanderBank(GeneralFund)241,474.52(241,564.27)89.7500.65%
AllyBank(GeneralFund)240,899.84(1,022.79)514.18240,391.231050.85%
CenturionBank(GeneralFund)241,224.99(1,383.78)695.67240,536.882881.15%
WellsFargoBank(GeneralFund)240,069.04(628.27)635.18240,075.954681.05%
(GeneralFund)240,448.77635.18241,083.955671.05%
CapitalOneBank
DiscoverBank(GeneralFund)240,000.0098.63240,098.637201.50%
CertificateofDepositTotals2,213,973.00$$240,000.00$(244,599.11)$4,378.52$1,973,752.41 3300.84%
TotalCash&Investments15,059,562.17$$11,777,054.53$(10,969,395.64)$28,605.05$15,655,826.11 420.75%
(1)(2)
(1)Weightedaveragelife Forpurposesofcalculatingweightedaveragelife,poolandbankaccountinvestmentsareassumedtohaveaonedaymaturity.
(2)Weightedaverageyieldtomaturity Theweightedaverageyieldtomaturityisbasedonadjustedbookvalue,realizedandunrealizedgains/lossesarenotconsidered.
TheundersignedservesastheInvestmentOfficerfortheTownofTrophyClub.IcertifythatallinstrumentsheldintheTown'sinvestmentportfoliosfortheperiodOctober1,
2016throughDecember31,2016(a)mettheinvestmentguidelinesandcompliedwiththeinvestmentstrategiesasauthorizedbytheTown'sInvestmentPolicies,and(b)didnot
violateanyapplicableprovisionsofsection2256oftheGovernmentCodeofTexas.
1/4/2017
INVESTMENTOFFICERDATE
StevenGlickman,CPA,CGFO
AssistantTownManager/CFO
To: Mayor and Town Council
From:Amber Karkauskas, Director of Finance
CC: Tom Class Sr., Town Manager
Holly Fimbres, Town Secretary
Re: Fiscal Year 2017 – 2nd Quarter Investment Report
Town Council Meeting, April 11, 2017
Agenda Item:
nd
Consider and take appropriate action regarding the 2Quarter Investment Report for Fiscal
Year 2017.
Explanation:
The Town’s current interest bearing accounts have an ending balance of $17,427,558.61 as of
March 31, 2017, which is an increase from 15,895,924.74 on December 31, 2016. The decrease
can be primarily attributed to the drawdown of property tax revenue to fund current
operations. Interest earnings for the quarter total $39,188.65 which is an increase of
$10,484.97or 73%from the first quarter investment report in FY 2017. The first quarter
investment earnings were from the following investments: $131.06was earnedfrom an
interest bearing account at First Financial Bank, $4,415.33 was earned from investment
accounts at TexPool, $4,230.21 was earnedfrom investment accounts at LOGIC, $1.64 was
earned from investment account at First Public, $26,475.69 was earned from investment
accounts at Texas CLASS, $2.81 was earned on investment accounts with Dryfus, and $3,931.91
was earned from Certificates of Deposit. The total average yield for the first quarter was 0.95%
which is .94% higher than the average 6-month Treasury-Bill yield of 0.89% for the same time
period. The average yield for interest bearing accounts during the quarter was 0.15% at First
Financial, 0.62% at TexPool, 1.07% at LOGIC, 0.97% at First Public, 1.04% at Texas CLASS, 0.54%
at Dryfus, and 0.94% on Certificates of Deposit. The Town’s deposits at First Financial Bank and
Comerica Bank are collateralized by government securities.
Attachments:
2nd QTR 2017 Inv Report.pdf
Recommendation:
Staff recommends approval of the 2nd Quarter Investment Report for Fiscal Year 2017.
Quarterly Investment Report
For the Quarter Ended March 31, 2017
Beginning EndingLife
Investment DescriptionBalanceDepositsWithdrawalsInterestBalance(days)Yield
First Financial Bank:
First Financial - Pooled Cash$ 309,960.38 $ 4,236,339.56$ (4,305,743.51)$ 131.06$ 240,687.49 10.15%
First Financial Subtotal:$ 309,960.38$ 4,236,339.56$ (4,305,743.51)$ 131.06$ 240,687.49 10.15%
TexPool Local Government Investment Pools:
TexPool - Interest and Sinking Account$ 916,446.91 $ 1,104,119.82$ (415,731.57)$ 2,306.75$ 1,607,141.9110.62%
TexPool - Designated Account 94,919.09 4,397,339.88 (4,140,037.39) 793.05 353,014.6310.62%
TexPool - Grant Fund 99.86 - - - 99.8610.62%
TexPool - 2010 Tax Notes 41,300.47 - - 58.47 41,358.9410.62%
TexPool - Utility Drainage Account 285,403.50 63,301.40 - 465.40 349,170.3010.62%
TexPool - EDC 4B Operating 553,924.82 16,735.99 (51,411.25) 771.46 520,021.0210.62%
TexPool - 2015 CO EDC 4B 14,272.55 - - 20.20 14,292.7510.62%
TexPool Subtotals:$ 1,906,367.20$ 5,581,497.09$ (4,607,180.21)$ 4,415.33$ 2,885,099.41 10.62%
Local Government Investment Cooperative (LOGIC):
LOGIC - Designated$ 480,689.86 $ 1,450,000.00$ -$ 4,230.21$ 1,934,920.0711.07%
LOGIC Subtotals:$ 480,689.86$ 1,450,000.00$ -$ 4,230.21$ 1,934,920.07 11.07%
First Public / Lonestar Investment Pool
First Public - Designated764.33 - -1.64765.9710.97%
First Public/Lonestar Subtotals:$ 764.33$ - $ -$ 1.64 $ 765.97 10.97%
Texas Cooperative Liquid Assets Securities System (Texas CLASS)
Texas CLASS - Designated$ 2,275,750.69$ 960,711.90 $ (1,063,971.26) $ 6,593.79$ 2,179,085.1211.04%
Texas CLASS - 2016 GO 3,939,464.71 - (674,224.40) 8,473.60 3,273,713.91 11.04%
Texas CLASS - 2016 CO 4,145,429.25 - (98,955.21) 9,888.57 4,056,362.61 11.04%
Texas CLASS - Hotel Occupancy 622,202.60 13,971.26 -1,519.73637,693.5911.04%
Texas Class Subtotals:$ 10,982,847.25$ 974,683.16$ (1,837,150.87)$ 26,475.69 $ 10,146,855.23 11.04%
Dryfus - A BNY Mellon Company
(C)
Sweep Money Market Fund
$ 1,444.68$ 1,463.67$ -$ 2.81$ 2,911.1610.54%
Dryfus Subtotals:$ 1,444.68$ 1,463.67$ -$ 2.81 $ 2,911.16 10.54%
Certificates of Deposit
Comerica Bank (General Fund)$ 1,011,664.40$ - $ -$ 617.93$ 1,012,282.33510.72%
(C)
Ally Bank (General Fund)
240,391.23 - - 503.01 240,894.24240.85%
(C)
Centurion Bank (General Fund)
240,536.88 - - 680.55 241,217.432061.15%
(C)
Wells Fargo Bank (General Fund)
240,075.95 - (193.31) 621.38 240,504.023851.05%
(C)
Capital One Bank (General Fund)
241,083.95 - (1,270.36) 621.38 240,434.974831.05%
(C)
Discover Bank (General Fund)
240,098.63 - - 887.66 240,986.296301.50%
Certificate of Deposit Subtotals:$ 2,213,851.04$ - $ (1,463.67) $ 3,931.91$ 2,216,319.28 2110.94%
Total Cash & Investments$ 15,895,924.74$ 12,243,983.48$ (10,751,538.26) $ 39,188.65 $ 17,427,558.61 280.95%
(A)(B)
$ - $ - $ -$ - $ -
(A)
Weighted average life - For purposes of calculating weighted average life, pool and bank account investments are assumed to have a one day maturity.
(B)
Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses are not considered.
(C)
Brokerage under Financial Northeastern Companies \[FNC\]
The undersigned serves as the Investment Officer for the Town of Trophy Club. I certify that all instruments held in the Town's investment portfolios for the period January 1, 2017
through March 31, 2017 (a) met the investment guidelines and complied with the investment strategies as authorized by the Town's Investment Policies, and (b) did not violate any
applicable provisions of section 2256 of the Government Code of Texas.
4/7/2017
INVESTMENT OFFICER: DATE:
Amber Karkauskas
Director of Finance