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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