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Home My WebLink AboutAudit Committee-Agenda Packets-8/18/2015 City of Colleyville Page 1 City of Colleyville Audit Committee Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, August 18, 2015 4:30 p.m. City Manager’s Conference Room Third Floor – City Hall 1. CALL TO ORDER 2. REGULAR AGENDA ITEMS 2a Meet with representatives(s) from the City's audit firm, Pattillo, Brown & Hill, L.L.P. to discuss the Fiscal Year September 30, 2015 audit 2b Discussion of update to City's Investment Policy 3. PRESENTATIONS Presentation of the Quarterly Investment Report for the quarter ended June 30, 2015 4. ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, August 14, 2015, by 5:00 p.m. Amy Shelley, TRMC City Secretary A quorum of the Colleyville City Council may be in attendance at this meeting. Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise Executive Secretary at least 48 hours in advance at 817.503.1111, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2a Agenda Date 08/18/2015 Number 2a Type Regular Agenda Items Department City Manager Title Meet with representatives(s) from the City's audit firm, Pattillo, Brown & Hill, L.L.P. to discuss the Fiscal Year September 30, 2015 audit Explanation John Manning, who is the partner with the City's audit firm Pattillo, Brown and Hill, L.L.P., will meet with the Audit Committee to discuss the Fiscal Year September 30, 2015 audit. City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2b Agenda Date 08/18/2015 Number 2b Type Regular Agenda Items Department City Manager Title Discussion of update to City's Investment Policy Explanation The most recent legislative session approved updates to the Public Funds Investment Act, which governs the City's investment process and investment policy. To be compliant with the updates, attached is the City's Investment Policy with proposed revisions. Additionally, staff has incorporated revisions to update the names of the investment officers in the policy. These proposed changes will be presented for consideration as an amendment to the investment policy ordinance for first reading at the September 1, 2015 City Council meeting. Major additions by section: Delegation of Authority The City designates the Investment Officers to be the City Manager with overall responsibilities to see that investment objectives are accomplished and the Finance Manager and Assistant Finance Manager with the specific day-to-day performance of managing the funds of the City. Prudence The Investment Officers of the City (City Manager, Finance Manager, and Assistant Finance Manager) shall be personally indemnified in the event of investment loss provided the Investment Policy is followed. Internal Controls The Finance Manager and Assistant Finance Manager shall establish a system of written internal controls which shall be reviewed annually by the independent auditor. Safekeeping Either the City Manager, Finance Manager or Assistant Finance Manager must approve release of collateral in writing prior to its removal from the safekeeping account. Audit Committee Agenda Briefing 2b City of Colleyville Page 2 Reporting Requirements The Finance Manager and Assistant Finance Manager shall issue a written report quarterly to the Audit Committee and City Council concerning the City's investment transactions for the preceding quarter and describing in detail the investment position of the City as of the end of the quarter indicating the market values of all investments held during the quarter. The report shall be signed by the Finance Manager and Assistant Finance Manager, as the investment officers for the City, and state its compliance with the Public Funds Investment Act and adopted investment policy strategy. Training Requirements In accordance with the Act (2256.005 and 2256.008), the Finance Manager and Assistant Finance Manager shall attend 10 hours of investment training within 12 months of assuming duties and 8 hours not less than once in a two-year period that begins on the first day of the City’s fiscal year and consists of the two consecutive fiscal years after that date. Investment Strategy A section in the Public Funds Investment Act requires that the governing body of a public entity review the investment strategy annually. The City's investment strategy is contained in the section of the City of Colleyville Investment Policy entitled "Investment Strategy", and will be presented for the City Council's review, when the above changes are proposed to City Council. There are no changes proposed in the existing investment strategy. Attachments 1.City Investment Policy - Proposed Changes CITY OF COLLEYVILLE INVESTMENT POLICY Policy It is the policy of the City of Colleyville (the City) to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all State of Texas laws and statutes including the Public Funds Investment Act, Chapter 2256 of the Government Code and City ordinances. Scope This investment policy applies to all financial assets of the City. These funds are accounted for in the City's Comprehensive Annual Financial Report and include: •General Fund •Special Revenue Funds •Capital Projects Funds •Enterprise Funds •Debt Service Funds, including reserves and sinking funds •Trust and Agency Funds, to the extent not required by law or existing contract to be kept segregated and managed separately and any new fund created by the City Council, unless specifically exempted by the City Council or by law. All funds may be combined as pooled funds unless specifically prohibited by State law or statute or City ordinance. Objectives The primary objectives, in priority order, of the City’s investment activities shall be: Safety: Safety of principal is the foremost objective of the City in managing its portfolio. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective the City will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. The City will also take into account the marketability of the investment if the need arises to liquidate the investment before maturity. Liquidity: The City will also maintain sufficient liquidity to provide adequate and timely working funds. Return on Investments: The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and cash flow needs. The City investment strategy is passive and the portfolio shall be designed with the objective of regularly exceeding the weighted average return on thirteen-week Treasury bills. This is considered a benchmark for riskless investment transactions, and therefore, is a minimum standard for the portfolio's rate of return. For bond funds that fall under the arbitrage provisions of the Tax Reform Act of 1986, the City will attempt to earn allowable bond yield with market conditions permitting. Delegation of Authority The City designates the Investment Officers to be the City Manager with overall responsibilities to see that investment objectives are accomplished and the Assistant City Manager/Chief Financial Officer and the Finance Manager and Assistant Finance Manager with the specific day-to-day performance of managing the funds of the City. Ethics and Conflict of Interest All investment Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions. Employees shall disclose to the City of Colleyville and Texas Ethics Commission a statement under the following conditions: A. If they have a personal business relationship with a business organization offering to engage in an investment transaction with the entity. Under the Public Funds Investment Act, a personal business relationship is defined as: 1.The investment officer owns 10 percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization: 2.Funds received by the investment officer from the business organization exceed 10 percent of the investment officer's gross income for the previous year; or 3.The investment officer has acquired from the business organization during the previous year, investments with a book value of $2,500 or more for the personal account of the investment officer. B. If they are related within the second degree by affinity or consanguinity, as determined by Chapter 573 V.A.T.C.S. to an individual seeking to sell an investment to the City of Colleyville. Prudence Investments shall be made with judgement and care – under circumstances then prevailing – which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person", which means the officer may not be an expert but is obligated to act responsibly and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Investment officers shall notify the City Council in writing of any conflicts of interest, as defined by the Public Funds Investment Act, no later than the next regularly scheduled Council meeting. It is the policy of the City that the Investment Officers perform their duties in accordance with the policies and procedures set forth in this policy. The Investment Officers of the City (City Manager, Assistant City Manager/Chief Financial Officer, and Finance Manager, and Assistant Finance Manager) shall be personally indemnified in the event of investment loss provided the Investment Policy is followed. Internal Controls The Assistant City Manager/Chief Financial Officer and Finance Manager and Assistant Finance Manager shall establish a system of written internal controls which shall be reviewed annually by the independent auditor. The controls shall be designed to prevent the loss of public funds due to fraud, error, misrepresentation, unanticipated market changes or imprudent actions. Permissible Instruments The following is a list of permissible instruments as authorized by the 70th Texas Legislature in the Public Funds Investment Act (TEX. REV. CIV. STAT. ANN. ACT 842A-2) and amended by the 71st Legislature: 1.Obligations of the United States or its agencies or instrumentalities; 2.Direct obligations of the State of Texas or its agencies; 3.Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies or instrumentalities; 4.Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by nationally recognized investment rating firm and having received a rating of not less than "A" or its equivalent; 5.Certificates of deposit issued by state and national depository institutions that have its main office or branch office in this state that are: a. Guaranteed or insured by the Federal Deposit Insurance City, FSLIC or its successors; or b. Secured by obligations that are described by subdivisions (1) through (4) of this subsection, which are intended to include all direct federal agency or instrumentality issued mortgage backed securities, and which have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the investing entities; 6. Invest in a local government investment pool as authorized by the Interlocal Cooperation Act (TEX. REV. CIV. STAT. ANN. ACT. 4413 (32c), as amended, and the Public Funds Investment Act (TEX. REV. CIV. STAT. ACT. 842a-2), as amended. The investment pool must comply with the requirements of the Public Funds Investment Act, as amended, as follows: a. The investment pool maintains a stable asset value of one dollar as defined in the Public Funds Investment Act; b. The investment pool maintains a AAA, or AAAm rating by one of the nationally recognized rating agencies; c. The investment pool's maximum average dollar weighted maturity does not exceed 90 days; and d. The investment pool's continued compliance with the remaining provisions of the Public Funds Investment Act. e. The eligible investments of the pool are as follows: obligations of the United States or its agencies and instrumentalities, other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the United States, fully collateralized repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities, other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the United States, and SEC registered money market funds authorized by the Public Funds Investment Act and rated in the highest category by at least one nationally recognized rating agency, reverse repurchase agreements with a term of no longer than 90 days. f. Include in its investment policy and/or operating procedures the following information: a description of eligible investment securities and unacceptable investments, a written statement on investment policy and objectives, a description of interest calculations, distribution, and treatment of gains and losses, security safeguarding, valuation collateralization and auditing, and a fee schedule. 7. Direct repurchase agreements with primary security dealers or financial institutions doing business in the State of Texas having a defined termination date, and secured by U.S. Government or federal agency securities, provided that the ownership of collateral for the repurchase agreement is transferred to the City, and deposited with a safekeeping agent for the duration of the contract and a signed master repurchase agreement has been executed with the counterparty. 8. SEC-registered no-load money market mutual funds with a dollar weighted average portfolio of 90 days or less whose assets consist exclusively of United States Government Securities whose investment objectives include seeking to maintain a stable net asset value of $1.00 per share. Investment in mutual funds shall be limited to a maximum of ten percent (10%) of the City's available funds. 9. Certificate of Deposit Account Registry Service (CDARS) deposited with a certificate of deposit issued by a depository institution that has its main office or branch office in this state that is selected by the investing entity pursuant to the requirements of Section 2256.010 of the Government Code. The City is not required to liquidate an investment that was authorized at the time of its purchase. Unacceptable Investment Instruments The following securities, although authorized by the Public Funds Investment Act, are not eligible investments for the City: 1. Collateralized mortgage obligations and/or obligations of the following structure a) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage- backed security collateral and pays no principal; b) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; c) collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and d) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. 2. Commercial paper 3. Banker's acceptances 4. Reverse repurchase agreements (Local Government Investment Pools which the City participates in may engage in reverse repurchase agreements if the term is 90 days or less) 5. No-load mutual funds other than SEC-registered no-load money market mutual funds with a dollar weighted average portfolio of 90 days or less whose assets consist exclusively of United States Government Securities whose investment objectives include seeking to maintain a stable net asset value of $1.00 per share. 6. Guaranteed investment contracts 7. Share certificates of qualifying credit unions Effect of Loss of Required Rating An investment that requires a minimum rating does not qualify as an authorized investment during the period the investment does not have a minimum rating. The Investment Officer shall take all prudent measures that are consistent with the City’s investment policy to liquidate the investment(s) that does not have the minimum rating (2256.021). In accordance with Section (2256.005(b)), the Investment Officer shall monitor rating changes in current investments by keeping a monthly record of ratings issued by three nationally recognized rating agencies. Investment Strategy The investment strategy by type of fund is as follows: (1) Operating Funds The investment strategy for operating fund(s) is to assure that anticipated cash flows are matched with adequate investment liquidity. A secondary objective is to create a portfolio, which will experience minimum volatility during economic cycles. These funds shall not have an investment with a stated maturity greater than two years and the weighted average maturity shall not exceed eighteen months. (2) Debt Service Funds The investment strategy for debt service fund(s) is the assurance of investment liquidity to cover the debt service obligations on the required payment date. Investments purchased shall not have a stated final maturity date which exceeds the corresponding debt service payment date. The weighted average maturity shall not exceed one year. (3) Reserve Funds The investment strategy for reserve fund(s) is the assurance of investment liquidity adequate to cover the debt service obligations not funded by debt service funds on the required payment date. Investment of reserve funds are controlled by their ordinance, resolution or indenture, and Federal and State law. Bond documents must be examined for each issue, for potential differences with this policy concerning investment instruments, maximum maturity or average life restrictions, call dates or sinking fund redemptions, and applicable arbitrage yields and rebate liability. Provisions contained in the bond documents will supersede provisions of this policy. Weighted average maturity shall be incompliance with bond requirements, as stated. Reserve funds will be invested using a more conservative approach than the current standard investment strategy when arbitrage rebate rules require refunding excess earnings. All excess earnings received will be segregated to allow a proper determination of interest income to be used in the arbitrage calculation. (4) Special Project or Special Purpose Funds The investment strategy for special projects or special purpose fund portfolio(s) will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The states final maturity dates of securities held shall not exceed the estimated project completion date. Funds in excess of defined construction payment schedules shall be limited to a maximum final maturity date of three years. Maturity limitations for single issue reserve funds shall not exceed the sooner of five (5) years, the call provisions of the bond ordinance, or the final maturity of the bond issue. Annually, the City Council shall formally review the Investment Policy and investment strategy contained with the Policy and record in writing that is has reviewed the Policy and record any changes to either the policy or strategy. A. Diversification The City will attempt to limit the risk of loss through diversification of its portfolio and to achieve the aforementioned investment strategies by diversification of instruments. Diversification by Instrument of Portfolio Maximum Percent U.S. Treasury Obligations (Bills, Notes and Bonds), 100% U.S. Government Agency Securities, and Instrumentalities of Government Sponsored Corporations 75% Certificates of Deposit (CD's) Commercial Bank's 75% Local Government Investment Pool 75% Certificate of Deposit Account Registry Service (CDARS) 75% Tri-Party Repurchase Agreement 75% SEC registered, no-load mutual fund 10% Investment Procedures The City shall enter the following agreements (if applicable): safekeeping, PSA repurchase agreements, wire transfer agreements, banking services contracts, and collateral/depository agreements. These contracts shall include the explicit delegation of authority to persons responsible for the transactions involving these agreements. No person except those designated in the contract may engage in any investment transactions. On all funds invested in instruments as listed in "Permissible Investments" numbers one through five, oral bids shall be requested from at least two broker/dealers or national banks. The City will accept the bid that provides the highest rate of return within the maturity required and within the parameters of this policy. Records will be kept of the bids offered, bids accepted, and a brief explanation of the decision that was made regarding the investment. Qualified Institutions Annually, the City Council shall approve four financial institutions for investment purposes as recommended by the Finance Manager. All firms shall answer the Broker/Dealer questionnaire (Appendix A) and submit their most recent audited financial statements to the City Council for evaluation of credit worthiness. All personnel in the firms who will be trading or quoting securities to the City Council must maintain a current NASD license and be registered to deal securities in the State of Texas. An investment certification form (Appendix B) on the firm's letterhead signed by a principal of the firm must be on file with the City. Safekeeping All marketable securities purchased by the City shall be held in third party safekeeping by an institution designated as primary agent. All securities will be delivered to the third party institution by seller. Personnel in the third party institution will verify the correct security was delivered by the seller ("delivery vs payment"). The third party institution shall issue a safekeeping receipt to the City listing the specific instrument, rate/yield, maturity, CUSIP, and other pertinent information. Collateral on deposit type securities which exceed the FDIC coverage shall be held in a third party safekeeping institution. In the event a third party safekeeping institution is used, a collateral agreement shall be executed between the City Council, depository which pledged the collateral, and the third party custodian of the collateral. The City will retain possession of all original safekeeping receipts and the receipts will state the security is pledged to the City. Either the City Manager, Assistant City Manager/Chief Financial Officer or the Finance Manager, or the Assistant Finance Manager must approve release of collateral in writing prior to its removal from the safekeeping account. Selection of Financial Institutions Depositories shall be selected through the City's banking services procurement process, which shall include a formal request for application. In selecting depositories, the services available, service costs, and credit-worthiness of institutions shall be considered, and the Investment Officers, shall conduct a comprehensive review of prospective depositories' credit characteristics and financial history. The City shall select financial institutions from which the City may purchase certificates of deposit in accordance with the Act and this Policy. The City will have a written depository agreement with any financial institution with whom the City has time or demand deposits. The Investment Officer shall monitor the financial condition of financial institutions where certificates of deposit are held. A qualified representative of the financial institution must sign the investment certification form (Appendix B) on the financial institutions letterhead and it must be kept on file with the City. Collateral Securities for Certificates of Deposit and Demand Accounts The City will accept as collateral for its Certificates of Deposit and demand accounts the following securities: A. FDIC coverage B. U.S. Treasury bills, notes and bonds C. United States Agency and instrumentalities bills or notes D. GNMA mortgage backed fully modified pass through securities E. Texas state, city county or school bonds with a remaining maturity of seven years or less and a rating of "A" or better by Moody's, Fitch Ratings, and Standard and Poor's. F. Surety Bond G. Federal Home Loan Bank Letter of Credit issued to the City Collateral shall be "marked to market" monthly by the Finance Manager. The following percentages constitute the minimum market value for collateral instruments that are pledged for the City's Certificates of Deposit and demand deposits. Form of Collateral Pledged Collateral Ratio 1. U.S. Treasury bills, notes, and bonds a. maturing within 1 year 102% b. maturing in 1-5 years 105% c. maturing in more than 5 years 110% 2. Actively traded U.S. Government Agency securities a. maturing in less than 1 year 103% b. maturing in 1-5 years 107% c. maturing in more than 5 years 115% 3. GNMA mortgage pass through securities 115% 4. Entities in the State of Texas bonds General Obligation Bonds a. maturing in less than 1 year 102% b. maturing in 1-5 years 105% c. maturing in more than 5 years 107% Revenue Bonds a. maturing in less than 1 year 105% b. maturing in 1-5 years 110% c. maturing in more than 5 years 115% Collateral shall be audited annually be the City's independent auditor and may be audited by the City at anytime during normal business hours of the safekeeping bank. Arbitrage The Tax Reform Act of 1986 places limitations on the City's yield from investing certain tax-exempt bond proceeds, debt service funds and reserve funds. The rebate provisions require that the City compute earnings on investments from certain issues of bonds on a periodic basis to determine if rebate is required. To determine the City's arbitrage position, the City is required to calculate the actual yield earned on the investment of the funds and compare it to the yield that would have been earned if the funds had been invested at a rate equal to the yield on the applicable bonds sold by the City. The rebate provisions state that periodically (not less than once every five years and not later than sixty days after maturity of the bonds), the City is required to pay the United States Treasury a rebate of any excess earnings. These restrictions require extreme precision in the monitoring and record keeping of investments, particularly in computing yields to ensure compliance. Failure to comply can dictate that the bonds become taxable, retroactively from the date of issuance. The investment strategy for bond funds which fall under the arbitrage provisions of the Tax Reform Act of 1986, is that the City will attempt to earn maximum allowable bond yield with market conditions permitting. Reporting Requirements The Assistant City Manager/Chief Financial Officer and Finance Manager and Assistant Finance Manager shall issue a written report quarterly to the Audit Committee and City Council concerning the City's investment transactions for the preceding quarter and describing in detail the investment position of the City as of the end of the quarter indicating the market values of all investments held during the quarter. The report shall list for each investment held during the quarter: the purchase price of the investment, the par value of the investment, the market value of the investment at the beginning of the quarter, market value of the investment at the end of the quarter, and fully accrued interest for the period. The portfolio shall be marked to market monthly and market pricing information is to be obtained through the use of appropriate external third party software, third party safekeeping service, or a third party independent pricing service. This report shall be in compliance with provisions of the Public Funds Investment Act, as amended. The report shall be signed by the Assistant City Manager/Chief Financial Officer and Finance Manager and Assistant Finance Manager, as the investment officers for the City, and state its compliance with the Public Funds Investment Act and adopted investment policy strategy. The quarterly investment reports must be reviewed annually by the City’s external audit firm as a part of the City’s annual audit and reported to the City Council. Training Requirements In accordance with the Act (2256.005 and 2256.008), the Assistant City Manager/Chief Financial Officer and Finance Manager and Assistant Finance Manager shall attend 10 hours of investment training within 12 months of assuming duties and 10 8 hours not less than once in a two-year period that begins on the first day of the City’s fiscal year and consists of the two consecutive fiscal years after that date. Both the Finance Manager and Assistant to the Finance Manager shall complete ten hours of training every two years as required by the Public Funds Investment Act. This training may be obtained from the following sources: North Central Texas Council of Governments, Government Treasurer's Organization of Texas, Government Finance Officer's of Texas, Texas Municipal League or the University of North Texas Center for Professional Development. The training must include education in investment controls, security risks, strategy risks, market risks, and any other topics as required by the Public Funds Investment Act. City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number Agenda Date 08/18/2015 Number 3a Type Presentation Department City Manager Title Presentation of the Quarterly Investment Report for the quarter ended June 30, 2015 Explanation During the period of April 1, 2015 through June 30, 2015, the City of Colleyville had an average of $53,363,986 invested on a daily basis, which earned $40,294, with an average yield of 0.30%. The average yield on investments for this quarter is 0.04% higher than the prior quarter's average of 0.26%. As of June 30, 2015, the City had $49,187,347 invested in the LOGIC Investment Pool, CDARS Certificates of Deposit and various debt instruments in the following percentages: Logic 48.48%FFCB Notes 17.99% FHLB Notes 21.65%CDARS CD's 9.24% Treasury Note 2.64% These percentages are within the guidelines for portfolio diversification in the City's investment policy. The market value of the City's investments on June 30, 2015 was $20,819,298 as compared to a purchase price of $20,834,811 (this excludes LOGIC Investment Pool and CDARS Certificates of Deposit). The Colleyville Economic Development Corporation currently holds a Treasury Note ($500,000) with a market value of $500,039 and a purchase price of $500,395. Additionally, $998,784 was invested in the Corporation's name in the LOGIC Investment Pool. These funds earned interest of $540 for the quarter. Attachments 1.Quarterly Investment Report for the quarter ended June 30, 2015 QUARTERLY INVESTMENT REPORT FOR QUARTER ENDING JUNE 30, 2015 THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT AND ADOPTED INVESTMENT POLICY STRATEGY -~ OUTSTANDING INVESTMENTS AT JUNE 30, 2015 PURCHASE PAR MARKET VALUE MATURITY YIELD ON PRICE VALUE @6/30/15 DATE INVESTMENT FFCB NOTE $999,850 $1 ,000,000 $1 ,000,073 7/13/2015 0 .308% FHLB $1 ,003,080 $1 ,000,000 $1,000,782 9/16/2015 0 .335% FFCB NOTE $1,400,000 $1 ,400,000 $1,400,829 1114/2015 0 .350% FFCB NOTE $500,478 $500 ,000 $500,296 11/4/2015 0.300% FFCB NOTE $1 ,000,000 $1 ,000,000 $1 ,000,673 11/13/2015 0 .330% FFCB NOTE $1 ,199,280 $1 ,200,000 $1 ,200,014 11/2712015 0 .250% FHLB NOTE $1 ,222,800 $1 ,200,000 $1 ,206,208 12/11/2015 0 .390% FFCB NOTE $750,285 $750 ,000 $750,300 12/17/2015 0.268% FFCB NOTE $999,600 $1 ,000,000 $999 ,632 4/25/2016 0.400% FFCB NOTE $1 ,004,070 $1 ,000,000 $1 ,002,303 5/9/2016 0.375% FHLB NOTE $1 ,198,200 $1 ,200,000 $1 ,200,102 6/10/2016 0.450% FFCB NOTE $999,500 $1 ,000,000 $1 ,000,038 8/4/2016 0 .575% FHLB NOTE $1 ,000,590 $1 ,000,000 $1 ,000, 162 10/1712016 0.470% FHLB NOTE $1 ,201 ,546 $1 ,200,000 $1 ,200,727 11/23/2016 0 .560% FHLB NOTE $1 ,301 ,014 $1 ,300,000 $1 ,301,912 12/12/2016 0 .660% TREASURY NOTE $1 ,301 ,219 $1 ,300 ,000 $1 .302 ,640 12/15/2016 0.562% FHLB NOTE $1 ,000,000 $1 ,000,000 $1 ,000,830 3/23/2017 0.750% FHLB NOTE $1 ,003,800 $1 ,000,000 $1 ,003 ,518 4(1/2017 0 .950% FHLB NOTE $999,500 $1 ,000,000 $997,742 5/12/2017 0.745% FHLB NOTE $750 ,000 $750 ,000 $750,516 6/12/2017 0 .820% TOTAL OUTSTANDING INVESTMENTS $20,834 ,811 $20 ,800,000 $20 ,819,298 CITY OF COLLEYVILLE BALANCES AT JUNE 30 , 2015 INVESTMENT PURCHASES $20,800 ,000 CDAR 'S CERTIFICATES OF DEPOSIT $4 ,543 ,316 LOGIC INVESTMENT POOL $23 ,844 ,032 TOTAL CITY INVESTMENTS HELD AT JUNE 30, 2015 $49,187,347 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION (C EDC ) BALANCES AT JUNE 30 , 2015 INVESTMENT PURCHASES $500 ,000 LOGIC INVESTMENT POOL $998 ,784 TOTAL CEDC INVESTMENTS HELD AT JUNE 30, 2015 $1 ,498 ,784 !TOTAL INVESTMENTS HELD BY CITY OF COLLEYVILLE AND COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION AT JUNE 30, 2015 $50 ,686, 131 INTEREST EARNINGS ON CITY OF COLLEYVILLE INVESTMENTS FOR THE PERIOD OF APRIL 1 -JUNE 30 , 2015 PURCHASE PAR MATURITY YIELD ON INTEREST PRICE VALUE DATE INVESTMENT EARNED T REASURY NOTE $1 ,303,495 $1 ,300 ,000 6/1512015 0 .190% $514 FHLB NOTE $753 ,559 $750 ,000 6/19/2015 0.320 % $526 FFCB NOTE $1 ,000,200 $1 ,000 ,000 6/24/2015 0 .330% $768 FFCB NOTE $999 ,850 $1 ,000 ,000 7/13/2015 0.308 % $768 FFCB NOTE $1 ,003.705 $1 ,000,000 9/16/2015 0.335% $835 FFCB NOTE $1,400 ,000 $1.400 ,000 11/4/2015 0 .350% $1 ,222 FFCB NOTE $500,478 $500 ,000 11 /4/2015 0.300% $374 FHLB NOTE $1 ,000,000 $1 ,000 ,000 11 /13/2015 0 .330% $823 FFCB NOTE $1 , 199,280 $1 ,200 ,000 11 /27 /2015 0 .250% $748 FHLB NOTE $1 ,000 ,000 $1 ,000 ,000 12/11/2015 0.390% $972 FFCB NOTE $750 ,285 $750 ,000 12/17/2015 0 .268% $501 FFCB NOTE -$1 ,000,000 $1 ,000 ,000 3/23/2016 0 .440% $12 FFCB NOTE $999 ,600 $1 ,000 .000 4/25 /2016 0.330% $823 FFCB NOTE $1 ,004,070 $1 ,000 .000 519 /2016 0 .375% $935 FHLB NOTE $1 ,198 ,200 $1 ,200 ,000 6/10/2016 0.450% $1 ,346 FFCB NOTE $999 ,500 $1 ,000 ,000 8/4/2016 0 .575% $1,434 FFCB NOTE-$1 ,199,700 $1 ,200 ,000 9/23/2016 0.693% $365 FHLB NOTE -$1 ,000 ,000 $1 ,000 ,000 9/30/2016 0 .625% $1 ,558 FHLB NOTE $1 ,000,590 $1 ,000 ,000 10/17 /2016 0.470% $1 ,172 FHLB NOTE -$1 ,399 .650 $1,400 ,000 10/28/2016 0 .513% $590 FHLB NOT E $1 ,201 ,546 $1 ,200 .000 11 /23/2016 0.560% $1 ,675 FHLB NOTE $1 .301 ,014 $1 ,300 ,000 12 /12/2016 0.660% $2 ,139 TREASURY NOTE $1 ,301 ,219 $1 ,300 .000 12115/2016 0 .562 % $1 ,821 FHLB NOTE $1 ,000 ,000 $1 ,000 ,000 3/23/2017 0.750 % $1 .870 FHLB NOTE $999 .500 $1 ,000 ,000 5/12 /2017 0 .745% $1 ,857 FHLB NOTE $750 ,000 $750 .000 6/12/2017 0 .820% $1 ,533 FHLB NOTE $1 ,003.800 $1 ,000 ,000 4nt2017 0.950% $2 ,368 TOTAL INTEREST EARNED ON CITY INVESTMENTS HELD APRIL 1, 2015 THROUGH JUNE 30, 2015 $29 ,551 •• EARLY CALL ON INVESTMENT RECAP OF MARKET VALUES ON CITY OF COLLEYVILLE INVESTMENTS HELD APRIL 1 -JUNE 30, 2015 INVESTMENT PURCHASE MATURITY PURCHASE DATE DATE PRICE FFCB NOTE 6124 12013 612412015 $1 ,000 ,200 FHLB NOTE 7123 12013 611912015 $753 ,559 FFCB NOTE 811312013 711312015 $999 ,850 FHLB NOTE 11 1112013 911612015 $1 ,003 ,7 05 FFCB NOTE 11 1112013 11 1412015 $1,400 ,000 FFCB NOTE 121312013 11 1412015 $500,478 TREASURY NOTE 12/31 12013 611512015 $1 ,303,495 FHLB NOTE 11312014 1211112015 $1 ,222 ,800 FFCB NOTE 31271 2014 11 11312015 $1 ,000 ,000 FFCB NOTE 412512014 4125 12016 $1 ,000 ,000 FFCB NOTE 5127120 14 11127 12015 $1 ,199 ,280 FHLB NOTE 6112120 14 611012016 $1 ,198 ,200 FFCB NOTE•• 612312014 312312016 $1 ,000 ,000 FFCB NOTE 61412014 61412016 $999 ,500 FFCB NOTE•• 912512014 9123 12016 $1 ,199 ,700 FFCB NOTE 101612014 12/1712015 $750 ,285 FHLB NOTE 10122/2014 101171 2016 $1 ,000 ,590 FHLB NOTE •• 10130 12014 1012812016 $1 ,399 ,650 FFCB NOTE 11 11412014 51912016 $1 ,004 ,070 FHLB NOTE 11 124 12014 11 123 12016 $1 ,201 ,546 FHLB NOTE 12/1812014 1211212016 $1 ,301 ,014 FHLB NOTE 312312015 3123 12017 $1 ,000 ,000 FHLB NOTE •• 3130 12015 9130 12016 $1 ,000 ,000 FHLB NOTE 511212015 51121201 7 $999 ,500 TREASURY NOTE 611512015 1211512016 $1 ,301 ,219 FHLB NOTE 611912015 61121201 7 $750 ,000 FHLB NOTE 6124 12015 417/2017 $1 ,003 ,800 TOTALS PAR VALUE $1 ,000 ,000 $750 ,000 $1 ,000 ,000 $1 ,000 ,000 $1,400 ,000 $500 ,000 $1 ,300 ,000 $1 ,200 ,000 $1 ,000 ,000 $1 ,000 ,000 $1 ,200 ,000 $1 ,200 ,000 $1 ,000 ,000 $1 ,000 ,000 $1 ,200 ,000 $750 ,000 $1 ,000 ,000 $1,400 ,000 $1 ,000 ,000 $1 ,200 ,000 $1 ,300 ,000 $1 ,000 ,000 $1 ,000 ,000 $1 ,000 ,000 $1 ,300 ,000 $750 ,000 $1 ,000 ,000 MARKET VALUE @3-31-15 LESS MATURITY PROCEEDS $1 ,000 ,442 $1 ,000 ,000 $750 ,653 $750 ,000 $1 ,000 ,195 NIA $1 ,001 ,625 NIA $1,400 ,806 NIA $500 ,288 NIA $1 ,300 ,813 $1 ,300 ,000 $1 ,209 ,42 1 NIA $1 ,000 ,419 NIA $999 ,575 NIA $1 ,199 ,202 NIA $1 ,199 ,273 NIA $1 ,000 ,000 $1 ,000 ,000 $998 ,698 NIA $1 ,200 ,078 $1 ,200 ,000 $750 ,099 NIA $1 ,000 ,531 NIA $1 ,398 ,363 $1 ,400 ,000 $1 ,004 ,77 1 NIA $1 ,201 ,146 NIA $1 ,301 ,96 7 NIA $1 ,000 ,613 NIA $1 ,000 ,510 $1 ,000 ,000 NIA NIA NIA NIA NIA NIA NIA NIA $24,419 ,488 $7,650 ,000 PLUS PERIOD PURCHASES NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA NIA $1 ,000 ,000 $1,300 ,000 $750 ,000 $1 ,000 ,000 $4 ,050 ,000 MARKET VALUE @ 6-30-15 NIA NIA $1 ,000 ,073 $1,000 ,782 $1 ,400 ,829 $500 ,296 NIA $1 ,206 ,208 $1 ,000 ,673 $999 ,632 $1,200 ,014 $1 ,200 ,102 NIA $1 ,000,038 NIA $750 ,300 $1 ,000 , 162 NIA $1 ,002 ,303 $1 ,200 ,727 $1 ,301 ,912 $1 ,000 ,830 NIA $997 ,742 $1 ,302 ,640 $750 ,516 $1 ,003 ,518 $20 ,819 ,298 LISTING OF INVESTMENTS BY GENERAL LEDGER ACCOUNT NUMBER OUTSTANDING INVESTMENTS AT 6-30-15 INVESTMENT- ACCOUNT AL LOCATI O N OF INVESTMENT GIL TOTAL 001-1172 GENERAL FUND OPERA TING $7 , 168 ,566 .90 002 -1 166 UTILITY DEBT SERVICE RESERVE $648 ,072.20 002-1172 UTILITY FUND OPERATING $5 ,244,457 .37 002 -1178 CUSTOMER DEPOSITS $443 , 179 .96 002-1186 UTILITY LINE RENEWAL $1 ,154 ,301 .00 002-1557 THE RESERVE LIFT STATION $62 , 103 .77 003-1180 BEDFORD BRIDGE ESCROW $35 ,907 .83 003-1188 TOWN CENTER/HWY26 $36 ,326 .67 003-1192 MCDONWELL WOODS EST ESCROW $10 ,996 .31 003-1200 LONGWOOD-PARKING ESCROW $13 ,380 .01 003-1204 BEDFORD LAKES/SOMERSET $22 7,978 .36 003-1228 PLEASANT RUN HARDAGE ESTATES/ESC $0 .00 003-1229 GLADE RD SUMMERBROOK $56 ,161 .99 003-1231 LAKEWOOD ESCROW $26 ,103 .65 003-1236 E. GLADE CRANBROOK ESCROW $117 ,794 .09 003-1237 E. GLADE ASHMORE I ESCROW $51 ,908 .79 003-1247 GLADE/WAYSIDE ESCROW $42,420 .01 003-1250 REATIAPLACE $98 ,462 .36 003-1257 ASHMORE II A GLADE RD ESCROW $27 ,761 .89 003-1268 MILL CREEK/ GLADE ESCROW $30 ,203 .34 003-1271 ASHMORE Ill/ GLADE ESCROW $64 ,045 .14 003-1278 GLADE RD/ASHMORE llB ESCROW $35 ,560 .60 003-1301 LAKEWOOD PH IV $77 ,530 .57 003-1304 VILLAS DEL MAR $60 ,324 .37 003-1307 STREET RECONSTRUCTION $247 ,919 .86 003-1309 COVENANT CHRISTIAN $140 ,343.10 003-1319 REMINGTON PARK $27 ,855 .96 003-1323 SHALIMAR $69 ,691 .33 003-1325 PECAN GARDENS $32 ,389 .09 003-1330 REM IN GTON PARK $81 ,068 .37 003-1340 CASTLETON MANOR $81 ,309 .57 003-1357 CITGO/LO LOCKETI $56 ,809 .28 003-1392 CLAIRMONT-PH I $104 ,974 .96 003-1404 TANGLEWOOD $26 ,111 .30 003-1418 CLAIRMONT-PH II $147 ,050 .32 003-1 429 WARWICK PARC $89 ,1 31 .60 003-1 434 ROCKR IMMON $65 ,055 .06 003-1486 CHANEL'S COURT $47 ,895 .39 003-1563 VILLAS OF COLLEYVILLE $52 ,979.48 005-1172 VOLUNTARY PARK FUND $599 ,801 .56 011-1172 LIBRAR Y DONATIONS FUND $359 ,642 .52 012-1172 PARK LAND DEDICATION FUND $1 ,404 ,816 . 14 017-1172 DRAINAGE FUND OPERATING $219,440 .95 024-1172 CEDC OPERATING $500 ,3 95 . 19 026-1172 TIF OPERATING $421 ,536 .57 032-15 19 CAPITAL EQUIPMENT RESERVE $450 ,000 .00 034-1172 COLLEYVILLE TOMORROW $375 ,441 . 76 PER GENERAL LEDGER $21 ,335 ,206 .54 MARKET VALUE $21 ,319 ,336 .60 VALUE AT MATURITY $21 ,300 ,000 .00 INT EREST RECEIVED TO MATURITY $193,738.43 OUTSTANDING INVESTMENTS AT 6-30-15 INVESTMENT FFCB NOTE FHLB NOTE FFCB NOTE FFCB NOTE TREASURY NOTE FHL B NOTE DATE ACQUIRED 13-Aug-13 01-Nov-13 01 -Nov-13 03-Dec-13 31-Dec-13 03-Jan-14 MATURITY DATE 13-Jul-15 16-Sep-15 04-Nov-15 04-Nov -15 31-Jul-15 11-0ec-15 26 W EEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE 0 .075% 0.080% 0 .080% 0.100% 0 .090% 0.070% YIELD TO MATUR ITY 0 .308% 0.335% 0.350% 0.300% 0 .200% 0390% ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 1 ,003 ,080 .00 500,478 .00 366 ,098.61 002-1166 UTILITY DEBT SERVICE RESERVE 648,072 .20 002-1172 UTILITY FUND OPERATING 849,349 .00 300,000.00 176,296 . 18 002-1178 CUSTOMER DEPOSITS 32 ,333 .01 002-1186 UTILITY LINE RENEWAL 150,501 .00 002-1557 THE RESERVE LIFT STATION 003-11 80 BEDFORD BRIDGE ESCROW 003-1188 TOWN CENTERIHWY26 003-1192 MCOONWELL WOODS EST ESCROW 003-1200 LONGWOOD-PARKING ESCROW 003-1204 BEDFORD LAKES/SOMERSET 003 -1228 PLEASANT RUN HARDAGE ESTATESIESC 003-1229 GLADE RD SUMMERBROOK 003-1231 LAKEWOOD ESCROW 003-1236 E. GLADE CRANBROOK ESCROW 003-1237 E GLADE ASHMORE I ESCROW 003-1247 GLADE/WAYSIDE ESCROW 003-1250 REATIA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE Ill/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE llB ESCROW 003-1301 LAKEWOOD PH IV 003-1304 VI LLAS DEL MAR 003-1307 STREET RECONSTRUCTION 003-1 309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LO LOCKETI 003-1392 CLAIRMONT-P H I 003-1404 TANGLEWOOD 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1 434 ROCKRIMMON 003-1486 CHANEL'S COURT 003-1563 VILLAS OF COLLEYVILLE 005-1172 VOLUNTARY PARK FUND 200,000 .00 011-1 172 LIBRARY DONATIONS FUND 012-1172 PARK LAND DEDICATION FUND 300,000 .00 017 -1172 DRAINAGE FUND OPERATING 150,000 .00 02 4-117 2 CEDC OPERATING 500 ,395.19 026-1172 TIF OPERATING 032-1519 CA PITAL EQUIPMENT RESERVE 450,000.00 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER $999 ,850.00 $1 ,003 ,080 .00 $1,400 ,000.00 $500,478.00 $500,395 .19 $1 ,222 ,800 .00 MARKET VALUE $1 ,000,073 .00 $1 ,000 ,7 82 .00 $1 ,400 ,828.80 $500,296.00 $500,039 .00 $1 ,206 ,2 07 60 VALU E AT MATURITY $1 ,000 ,000.00 $1 ,000 ,000 .00 $1,400 ,000.00 $500,000.00 $500,000.00 $1 ,200,000.00 INTEREST RECEIVED TO MATURITY $5 ,895.81 $6 ,278.90 $9,840 .27 $2 ,880.82 $1 ,580.82 $9 ,073.25 OUTSTANDING INVESTMENTS AT 6-30-15 INVESTMENT FFCB NOTE FFCB NOTE FFCB NOTE FHLB NOTE FFCB NOTE FFCB NOTE DATE ACQUIRED 27-Mar-14 25-Apr-14 27-May-14 12-Jun-14 04-Aug-14 06-0ct-14 MATURITY DATE 13-Nov-15 25-A pr-16 27-Nov-15 10-Jun-16 04-Aug-16 17-Dec-15 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE 0.060% 0050% 0.130% 0.060% 0.050% 0 .050% YI ELD TO MATURITY 0.330% 0.400% 0.250% 0.451% 0 .575% 0.268% ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 1,000,000 .00 700,000.00 847 ,850 .00 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 2,273 67 499,280.00 999 ,500.00 239,484.06 002-1178 CUSTOMER DEPOSITS 245 ,159.19 002 -1186 UTILITY LINE RENEWAL 002-1557 THE RESERVE LIFT STATION 62 , 103 .77 003-1180 BEDFORD BRIDGE ESCROW 003-1188 TOWN CENTER/HWY26 36 ,326.67 003-1192 MCDONWELL WOODS EST ESCROW 10 ,996.31 003-1200 LONGWOOD-PARKING ESCROW 13 ,380.01 003-1204 BEDFORD LAKES/SOMERSET 227 ,978.36 003-1228 PLEASANT RUN HARDAGE ESTATES/ESC 003-1229 GLADE RD SUMMERBROOK 56 ,161 .99 003-1231 LAKEWOOD ESCROW 26 , 103 .65 003-1236 E GLADE CRANBROOK ESCROW 117 ,7 94 09 003-1237 E GLADE ASHMORE I ESCROW 51 ,908.79 003-1247 GLADE/WAYSIDE ESCROW 42 ,420 .01 003-1250 REATIA PLACE 98 ,462 .36 003-1257 ASHMORE II A GLADE RD ESCROW 27 ,761 .89 003-1268 MILL CREEK/ GLADE ESCROW 30 ,203.34 003-1271 ASHMORE Ill/ GLADE ESCROW 64 ,045.14 003-1278 GLADE RD/ASHMORE llB ESCROW 35 ,560 60 003-1301 LAKEWOOD PH IV 003-1304 VILLAS DEL MAR 60 ,324.37 003-1307 STREET RECONSTRUCTION 43,849.86 003-1309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 69 ,691 .33 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LO LOCKETI 56 ,809 .28 003-1392 CLAIRMONT-PH I 104 ,974 .96 003-1404 TANGLEWOOD 26,111 .30 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1434 ROCKRIMMON 003-1 486 CHANEL'S COURT 003-1563 VILLAS OF COLLEYVILLE 005-1172 VOLUNTARY PARK FUND 011-1172 LIBRARY DONATIONS FUND 012 -1172 PARK LAND DEDICATION FUND 017 -1172 DRAINAGE FUND OPERATING 02 4-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-151 9 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW 350 ,350 .00 PER GENERAL LEDGER $1 ,000,000 .00 $999,600.00 $1 , 199,280.00 $1 ,198,200.00 $999 ,500.00 $750,285.00 MARKET VALUE $1 ,000 ,673.00 $999 ,632 .00 $1 ,200,014 .40 $1 ,200 ,102.00 $1 ,000,038.00 $750,300 .00 VA LUE AT MATURITY $1 ,000,000 .00 $1 ,000,000.00 $1 ,200 ,000.00 $1,200,000 .00 $1 ,000,000.00 $750,000.00 INTEREST RECE IVED TO MATUR ITY $5 ,388.49 $8 ,010.96 $4 ,512 .33 $10,809.17 $11 ,515.75 $2 ,406.49 OUTSTANDING INVESTMENTS AT 6-30-15 INVESTMENT FHLB NOTE FFCB NOTE FHLB NOTE FHLB NOTE FHLB NOTE FHLB NOTE DATE ACQUIRED 22-0ct-14 14-Nov-14 24-Nov-14 18-Dec-14 23-Mar-15 12-May-15 MATURITY DATE 17-0ct-16 09-May-16 23-Nov-16 12-Dec-16 23-Mar-17 12-May-17 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE 0.060% 0.070% 0 .080% 0 .120% 0.110% 0.090% YI ELD TO MATURITY 0.470% 0375% 0.560% 0 .660% 0.750% 0.745% ACCOUNT ALLOCATION OF INVESTMENT 001 -1172 GENERAL FUND OPERATING 499,872.46 800 ,000 00 451 ,187.83 1,000,000.00 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 449 ,796.28 1,301,014 .00 199,190.95 002-1178 CUSTOMER DEPOSITS 165,687 76 002-1186 UTILITY LINE RENEWAL 002-1557 THE RESERVE LIFT STATION 003-1180 BEDFORD BRIDGE ESCROW 003-1188 TOWN CENTER/HWY26 003-1192 MCDONWELL WOODS EST ESCROW 003-1200 LONGWOOD-PARKING ESCROW 003-1204 BEDFORD LAKES/SOMERSET 003-1228 PLEASANT RUN HARDAGE ESTATESIESC 003-1229 GLADE RD SUMMERBROOK 003-1231 LAKEWOOD ESCROW 003-1236 E. GLADE CRANBROOK ESCROW 003-1237 E GLADE ASHMORE I ESCROW 003-1247 GLADE/WAYSIDE ESCROW 003-1250 REATIA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE Ill/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE llB ESCROW 003-1301 LAKEWOOD PH IV 77 ,530.57 003-1304 VILLAS DEL MAR 003-1307 STREET RECONSTRUCTION 204 ,070 .00 003-1309 COVENANT CHRISTIAN 003 -1319 REM INGTON PARK 27 ,855.96 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 81 ,309.57 003-1357 CITGO/LO LOCKETI 003-1392 CLAIRMONT-PH I 003 -1404 TANGLEWOOD 003 -1418 CLAIRMONT-PH II 147 ,050 .32 003 -1429 WARWICK PARC 003 -1434 ROCKRIMMON 003 -1486 CHANEL'S COURT 47 ,895.39 003-1563 VILLAS OF COLLEYVILLE 52 ,979.48 005-1172 VOLUNTARY PARK FUND 200 ,374 .33 011 -1172 LI BRARY DONATIONS FUND 359 ,642 .52 012-1172 PARK LAND DEDICATION FUND 115,983 .26 100, 187 .16 200,000.00 017 -1172 DRAINAGE FUND OPERATING 024 -1172 CEDC OPERATING 026 -1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW 25 ,091 76 PER GENERAL LEDGER $1 ,000 ,590.00 $1 ,004 ,070 00 $1 ,201 ,545 60 $1 ,301 ,014 .00 $1 ,000 ,000.00 $999 ,500 00 MA RKET VALUE $1 ,000 , 162 .00 $1 ,002 ,303 00 $1 .200. 727 20 $1,301 .912 .30 $1 ,000,830 .00 $997 ,742 00 VALUE AT MATURITY $1 ,000,000 .00 $1 ,000,000 00 $1 ,200 ,000.00 $1 ,300 ,000.00 $1 ,000,000 00 $1,000 ,000 .00 INTEREST RECEIVED TO MATURITY $9 ,350.80 $5 ,570 .05 $13,441 .03 $17 ,051 .37 $15 ,020.55 $14 ,925 .08 CDARS CERTIFICATE OF DEPOSIT ALLOCATION II CDARS CERTIFICATES OF DEPOSIT II INTEREST EARNED FUND PURCHASE MATURITY INTEREST DURING ALLOCATION AMOUNT DATE DATE RATE QUARTER UTILITY FUND $506 ,822 .35 7/31/2014 7/30/2015 0.30% $374 .91 GENERAL FUND $505 ,871 .92 6/26/2014 6/23/2016 0.50% $623 .68 GENERAL FUND $506 ,768 .95 3/26/2015 3/24/2016 0.30% $374 .87 GENERAL FUND $1 ,515 ,607 .06 9/25/2014 9/24/2015 0 .22% $822 .16 GENERAL FUND $504 ,998 .83 9/25/2014 9/22/2016 0.50% $622 .60 GENERAL FUND $503 ,246.43 9/25/2014 9/24/2015 0 .30% $372 .26 GENERAL FUND $500 ,000.00 3/27/2014 3/24/2016 0.50% $616.44 TOTAL $4 ,543 ,315 .54 $3 ,806.93 LOGIC INVESTMENT POOL ALLOCATION AND GENERAL INFORMATION LOCAL GOVERNMENT INVESTMENT COOPERATIVE/ "LOGIC" ACCOUNT ALLOCATION AT JUNE 30, 2015 ACCT# DESCRIPTION BALANCE GENERAL FUND 001-1115 GENERAL OPERATING $1 ,014 ,099 .79 UTILITY FUND 002-1 115 UTILITY OPNS $885 ,867 .84 002-1116 IMPACT FEES WATER $1 ,246 , 106 .84 002-1119 UTILITY LINE RESTORATION $1 ,363 ,746 .24 002-1130 UTILITY INTEREST & SINKING FUND $533,476 .10 002-1294 IMPACT FEES SEWER $365,498 .07 CAPITAL PROJECTS FUND 003-1113 IMPACT FEES/SA I $21 ,203 .12 003-1508 MICRO-RESURFACING $304 ,536 .31 003-1509 STREET RESURFACING $30 ,025 .88 DEBT SERVICE FUND 004-1115 DEBT SERVICE OPERATING $900,438 .19 DRAINAGE FUND 017-1115 DRA INAGE OPERATING $625 ,461 .63 017-1159 DRAINAGE INT & SINKING FUND $241 ,098 .55 017-1 380 2001 DRAINAGE BONDS $2 ,327 .02 TIFFUND 026-1115 TIF OPERATING $11 ,550 , 132.55 026-1383 2001 TIF BONDS $123 ,327 .52 CCCPDFUND 027-1115 CCCPD OPERATING $909 ,920 .53 027-1147 99 POLICE/COURT BLDG FUND $3 ,868 .33 SALES TAX INCENTIVE AGREEMENT FUND 031-1115 SALES TAX INCENTIVE AGREEMENT OPERATING $354 ,357 .00 CAPITAL EQUIPMENT REPLACEMENT FUND 032-1115 CAPITAL EQUIPMENT REPLACEMENT FUND $81 ,898 .27 COLLEYVILLE TOMORROW FUND 034-1115 COLLEYVILLE TOMORROW FUND $1 ,644 ,758.43 PARKS TOMORROW FUND 035-1115 PARKS TOMORROW FUND $1 .195 ,894 .38 STRATEGIC INITIATIVES FUND 036-1115 STRATEGIC INITIATIVES FUND $296 , 132 .66 TOTAL LOGIC POOL BALANCE $23 ,694 , 175 .28 LOGIC As of June 30, 2015 Current Invested Balance We ighted Average Maturity (1)* Weighted Average Maturity (2)* Net Asset Value $3,654, 155,351.53 46 Days 48 Days 1 .000069 479 Total Number of Participants Manag ement Fee on Invested Balance Interest Distributed 0.0875% $654,221.60 $269,602.10 0.28% AAAm Manag ement Fee Collected % o f Portfolio Invested Beyond 1 Year Standard & Poor's Current Rating June Averages: Ave rage Invested Balance $3, 748,578,101 .03 Average Mo nthly Yield, on a simple basis 0.1249% Average Weighted Average Maturity (1)* 50 Days Averag e Weighted Average Maturity (2)* 52 Days *Definition of Weighted Ave rage Maturity (1) & (2) (1) This we ighted average maturity calculation uses the SEC Rule 2a-7 definition for stated maturity for any floating rate instrument held in the portfolio to determine the weighted average maturity for the pool. This Rule specifies that a variable rate instrument to be paid in 397 calendar days or less shall be deemed to have a maturity equal to the period remaining until the next readjustment of the interest rate . (2) This weighted average maturity ca lculation uses the final maturity of any floating rate instruments held in the portfol io to calculate the weighted average maturity for the pool. Rates reflect historical information and are not an indication of future performance . New Participants We would like to welcome the following entities who joined the LOGIC program in June : * City of Belton * City of McGregor Monthly Online Statement Enhancement We are pleased to in form you of an enhancement to your monthly online statements for LOGIC . When you access your monthly statements using the internet transaction system , they can be obta ined in a single pdf file , which includes all of your accounts . This file can be printed and/ or saved on your computer for future reference . Please contact LOGIC Participant Services if you need any as- sistance us ing this feature . LOGIC Newsletter June 2015 The second quarter carried on the eventful nature of 2015 . Despite ongo ing concerns over Greece 's possib le exit from the Eurozone , a stock market bubble in China , a softer US economy, illiquidity in fixed income markets , and geopol itics , risk assets have largely dismissed all the these negatives . Unsurprisingly, fixed income markets haven 't fared as well . The US economy appears to have bounced out of the first quarter's growth pothole and consensus forecasts are for growth of 2 .5% in the second quarter. The rebound in growth is being once again driven by the US consumer. Savings rates were outpacing spending rates in the first quarter, but this trend has gone into reverse and nominal consumer spending increased by 0.9% in May, the highest level since August 2009 . The housing market is showing signs of a pick-up, with new and existin g home sales ris ing , as are hous ing starts . The pick-up in Treasury yields may not slow the pace of growth in home sales as much as feared . However, mortgage approvals are rising again and higher wage growth and consumer confidence should support this segment of the economy. All of this data points to an increasingly likely first rate hike by the US Federal Reserve (the Fed) before year end . The Federal Open Market Committee (FOMC) met twice in the second quarter. In April , they expressed some concern about the growth slowdown following the weak first quarter, though they communicated that they bel ieved much of the weakness was transitory. They expressed a more optimistic tone in June as most participants still expect lift-off before the end of the year. While some of the FOMC 's recent signals were somewhat dovish , it is expected that economic data over the coming months w ill support a move towards normalization beginning with a September hike. None-the-less , the Fed is trying to minimize market disruption as much as possible by stressing its expectation of a shallow path towards higher rates . It may be hard for the Fed to move too quickly as higher rates will cause the dollar to strengthen , restricting the Fed 's ability to get back to a neutral level. Consistent with Chair Yellen 's gu idance , it is anticipated the Fed w ill move towards a 1.75% level by the end of 2016 , but a pause at that point to assess the market impact is highly likely. The U.S . yield curve typically flattens as tighten i ng cycles evolve and it is expected that this time will be no different. In addition , higher rates should spur long duration demand from pensions and insurance companies , effectively muting a move higher and contributing to a flatter yield curve . This information Is an excerpt from an economic report dated June 2015 provi ded to LOGIC by JPMorgan Asset Management, Inc., the Investment manager of the LOGIC pool. Commercial Paper 67 .78% 9 1 to 180 days 3 .82 % 31to90 days 46 .76% Month Jun 15 May 15 Apr 15 Mar 15 Feb 15 Jan 15 Dec 14 Nov 14 Oct 14 Sep 14 Aug 14 Jul 14 Distribution of Participants by Type As of June 30, 2015 1 to 7 days 30 .54 % Util ity District 9 .81 % School District 39 .04 % Other 6 .47% Historical Program Information Average Book Market Net Rate Value Value Asset Value WAM l 1!* WAM l2!* 0 .1249% $3 ,654 ,155,351 .53 $3 ,654 ,410 ,680.14 1.000069 50 52 0.1122% 3,946 ,893,410.17 3,947 , 118 ,664 .62 1.000057 50 53 0 .1130% 3,998 ,470, 171 .80 3 ,998 ,712 ,647 .13 1.000060 53 56 0 .0999% 4 ,066 ,005,4 18.39 4 ,066 ,212 , 104 .05 1.000050 54 54 0 .0921% 4 ,259 ,905 ,573.48 4 ,260 , 112 ,636 .65 1.000044 56 56 0 .0843% 4 ,685 ,467 ,403 .35 4 ,685 ,649 ,495 .36 1.000035 53 53 0 .0974% 3,939 ,993 ,459.46 3,940 ,056 ,660 .58 1.000012 54 54 0 .0871% 3 , 113 , 166,276 .38 3 , 113 ,286 ,210 .13 1.000038 57 57 0.0879% 2 ,980 ,769 ,409 .32 2 ,980 ,950 ,713 .69 1.000053 56 56 0 .0795% 3,010 ,891 ,831 .13 3 ,011 , 100 ,863 .54 1.000069 57 57 0 .0927% 3,093 , 141 ,562 .93 3,093 ,305 ,609 .22 1.000049 56 56 0 .0989% 3 ,271 ,203 ,541 .22 3 ,27 1,345 ,878.40 1.000043 51 52 Portfolio Asset Summary as of June 30 , 2015 Un invested Balance Accrual of Interest Income Interest and Management Fees Payable Payable fo r Investment Purchased Receivable for Investment Sold Repurchase Agreements Commercial Paper Government Securities Total Book Value Market Value $ (2 , 192.66) 705 ,098 .01 (709 ,727 .37 ) 0.00 0.00 658 ,756 ,999 .96 2 ,476 ,653 ,977 .07 518 ,751 ,196.52 $ 3,654, 155,351.53 $ (2 , 192.66) 705 ,098 .01 (709 ,727 .37) 0.00 0.00 658 ,756 ,999 .96 2 ,476 ,829 ,814 .75 518 ,830 ,687.45 $ 3,654,410,680.14 Treasuries 3 .50 % Agencies 10.69% County 10 .65% Health Care 1.67 % Number of Partici e!nts 479 477 477 476 475 474 474 474 473 472 470 469 Market value of collateral supporting the Repurchase Agreements is at least 102 % of the Book \lalue . The portfolio is managed by J.P. Morgan Chase & Co . and the assets are safekept in a separate custodial account at the Federal Reserve Bank in the name of LOGIC. The only source of payment to the Participants are the assets of LOGIC. There is no secondary source of payment for the pool such as insurance or guarantee. Should you require a copy of the portfolio. please contact LOGIC Partici pant Services. 0 .14 0 .12 0 .1 0 0 .08 0 .06 0 .04 0 .02 0 .00 LOGIC versus 90-Day Treasury Bill ~~~~~~~~~~~~~~~~~~ #~~~#~#~~~######## ~~~~~~~~~~~~~~~~~~ •90 Day T-Bill Rate •LOGIC Rate This material is for information purposes only. This informati on does not represent an offer to buy or sell a seruity. The above rate information is obtained fro m sources that are bel ieved to be rel iable ; however. its accuracy or completeness may be subject to change . The LOGIC management fee may be waived in full or in part at the disaetion of the LOG IC co-administrators and the LOGIC rate for the pE!liod shown reflects waiver of fees . This table represents hi storical investment petiormance/retim to the customer, net of fees , and is not an indication of future pelformance. An investment in the secuity is not in sued or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the issuer seeks to preserve the value of an in vestment at $1 .00 per share , ~is possible to lose money by investing in the security. Information about these and other progam details are in the fund's Information Statement which shou ld be read careful ly before investing. The yield ai the 90-Day Treasury Bill ("T-Bill Yield') is shown for compa rative purposes aily. Wlen comp,.;ng the investment retims of the LOG IC pool to the T-Bill Yield , you shou ld know that the LOG IC pool cons ist of allocatiais of speci fic diver.;ified securities as detailed in the respective lnformatiai Statements . The T-Bill Yield is ta ken from Bloomberg Finance L.F' and represents the daily closing yield on the then curent 90-day T-8 ill. Daily Summary for June 2015 Mny Mkt Fund Daily Allocation LOGIC Invested Market Value WAM WAM Date Equiv. [SEC Std.) Factor Balance Per Share Days (1)* Days (2)* 6/1/2015 0 .1173% 0 .000003215 $3 ,986 , 154 ,889 .05 1.000067 50 52 6/2/2015 0.1203% 0 .000003295 $3 ,981 , 141 ,852 .66 1.000068 52 55 6/3/2015 0 .1240% 0 .000003398 $3 ,984 ,284 ,841 .13 1.000064 53 56 6/4/2015 0.1257% 0 .000003445 $3 ,982 ,615 ,910 .81 1.000064 54 57 6/5/2015 0.1233% 0 .000003377 $3 ,940 ,596 ,839 .37 1.000047 52 55 6/6/2015 0 .1233% 0 .000003377 $3 ,940 ,596 ,839 .37 1.000047 52 55 617/2015 0 .1233% 0 .000003377 $3 ,940 ,596 ,839 .37 1.000047 52 55 6/8/2015 0 .1242% 0 .000003403 $3 ,832 ,320,408 .95 1.000064 53 56 6/9/2015 0 .1237% 0 .000003388 $3 ,819,427 ,904 .33 1.000059 53 56 6/10/2015 0 .1234% 0 .000003380 $3 ,809 ,595 ,373 .15 1.000051 52 56 6/11/2015 0 .1286% 0.000003523 $3 , 728 ,260 ,994 .10 1.000054 52 55 6/12/2015 0.1260% 0 .000003451 $3 ,727 ,757 ,375 .08 1.000045 50 53 6/13/2015 0.1260% 0 .000003451 $3 ,727 ,757 ,375 .08 1.000045 50 53 6/14/2015 0 .1260% 0 .000003451 $3 ,727 ,757 ,375 .08 1 .000045 50 53 6/15/2015 0 .1334% 0 .000003654 $3 ,684 ,217 ,271 .67 1.000055 50 52 6/16/2015 0 .1306% 0 .000003579 $3 ,695 ,324 ,831 .06 1.000055 49 51 6/17/2015 0 .1227% 0 .000003362 $3 ,682 ,424 , 199.55 1.000057 48 51 6/18/2015 0 .1186% 0 .000003249 $3 ,675 ,033 ,378 .09 1.000062 48 50 6/19/2015 0 .1205% 0 .000003300 $3 ,639 ,891 ,958 .76 1.000055 46 49 6/20/2015 0 .1205% 0 .000003300 $3 ,639 ,891 ,958 .76 1.000055 46 49 6/21/2015 0.1205% 0 .000003300 $3 ,639 ,891 ,958 .76 1.000055 46 49 6/22/2015 0 .1188% 0 .000003255 $3 ,647 ,035 ,675 .5 1 1.00007 1 46 49 6/23/2015 0 .1226% 0 .000003358 $3 ,609 ,355 ,769 .84 1.000066 50 53 6/24/2015 0.1265% 0 .000003466 $3 , 590 , 728 ,408 .95 1.000068 49 52 6/25/2015 0 .1249% 0 .000003421 $3 ,662 ,800 ,649 .78 1.000065 48 50 6/26/2015 0 .1308% 0 .000003584 $3 ,629 ,522 ,522 .96 1.000058 47 50 6/27/2015 0.1308% 0 .000003584 $3 ,629 ,522 ,522 .96 1.000058 47 50 6/28/2015 0.1308% 0 .000003584 $3 ,629 ,522 ,522 .96 1.000058 47 50 6/29/2015 0.1275% 0 .000003494 $3 ,619 , 159 ,232 .12 1.000071 47 50 6/30/2015 0 .1322% 0 .000003622 $3 ,654, 155 ,351 .53 1.000069 46 48 Average 0 .1249% 0 .000003421 $3 ,748 ,578 , 101.03 50 52 LOZ:SL Xl 'se11ea 008 ai!ns 'iaaJlS 1n ed ·is 4lJON SZ:f 'JUI 'iuawafieuew iass'v' isaM4ino5 lSJ !:I O/J S<l)!AJ<lS iuedp!lJE?d )1901 LOGIC Board Members Philip G. Roberson Arlington ISO Board President Fred L. Werner Municipal Finance Director Board Vice President Judd R. Sanderson North Texas Municipal Water District Board Treasurer/ Investment Officer Sandra Newby Tarrant Regional Water District Board Member Greg Jordan City of Grapevine Board Member For more information contact LOGIC Participant Services * 1-800-895-6442 * www.logic.org First Southwest ~ J.P. Morgan Asset Management