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Home My WebLink AboutAudit Committee-Agenda Packets-1/17/2017City 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, January 17, 2017 4:30 p.m. City Manager’s Conference Room Third Floor – City Hall 1.CALL TO ORDER 2. APPROVAL OF MINUTES November 15, 2016 3. PRESENTATION AND DISCUSSION 3a Discussion of the draft Fiscal Year 2016 (FY16) Audit and SAS 114 Letter 3b Presentation of the Quarterly Investment Report for the quarter ended December 31, 2016 4.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, January 13, 2017, by 5:00 p.m. Amy Shelley, TRMC City Secretary A quorum of the Colleyville City Council and/or any other Colleyville Board, Commission, or Committee 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 MINUTES – DRAFT City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, November 15, 2016 4:00 p.m. City Manager’s Conference Room 3rd Floor – City Hall Chief Financial Officer Brian Hogan called the Audit Committee to order on November 15, 2016 at 4:06 p.m. ROLL CALL: Committee members Nancy Coplen, Tammy Nakamura, Bobby Lindamood, and Susan Mathisen were present. City Manager Jennifer Fadden, Chief Financial Officer Brian Hogan, Accounting Manager Karen Hines, and City Secretary Amy Shelley were also present. 2. APPROVAL OF MINUTES August 10, 2016 Committee member Coplen made a motion to approve the August 10, 2016, meeting minutes. Committee member Lindamood seconded. All approved by acclamation. 3.REGULAR AGENDA ITEMS 3a Meet with representatives from the City's audit firm Pattillo, Brown and Hill, L.L.P. to discuss the interim progress of the Fiscal Year ended September 30, 2016 audit John Manning with Patillo, Brown and Hill, L.L.P. presented this item and briefed the committee. Committee member Mathisen asked Mr. Manning if that is a $2.2 million dollar swing relative to TMRS (GASB68). Mr. Manning replied yes, actually it is $2.8 million dollars. He added trying to be even is exactly where you want to be and there are items added into this which may or may not happen. Chief Financial Officer Brian Hogan added GASB68 was a new requirement over last year and there are some items to offset it, such as assets and future liabilities. Committee member Nakamura asked Mr. Manning about the single audit threshold. Mr. Manning replied it is over $750,000. Chief Financial Officer Brian Hogan added this single audit included the train crossings. City of Colleyville Page 2 Comprehensive Plan Advisory Committee Minutes - DRAFT November 15, 2016 3b Presentation of the Quarterly Investment Report for the quarter ended September 30, 2016 Chief Financial Officer Brian Hogan presented this item and briefed the committee. Committee member Mathisen asked staff which bank is used. Chief Financial Officer Brian Hogan replied Wells Fargo. Committee member Lindamood asked about the other banks used. Chief Financial Officer Brian Hogan replied Worthington and Spirit banks are used for certificates of deposit. 3c Discussion of Commercial Paper in the local government investment pool Chief Financial Officer Brian Hogan presented this item and briefed the committee. Committee member Lindamood asked staff if they have had anyone question this policy. Chief Financial Officer Brian Hogan replied no, and he does not see the need in two different investment pools. Committee member Coplen asked staff if they are checking reports every day. Chief Financial Officer Brian Hogan replied the market report shows the trends for government, and we have a representative with LOGIC that we can ask questions about the investment pools. Committee member Mathisen asked staff who is responsible for the investment transactions. Chief Financial Officer Brian Hogan replied we use a broker, and when money comes up for maturity, the brokers will call us. He added there are about four different brokers, and we do not pay them any fees. Committee member Mathisen asked staff who in the City is responsible for the investments. Chief Financial Officer Brian Hogan replied himself or the Accounting Manager Karen Hines. Chief Financial Officer Brian Hogan explained the next meeting will be held on January 17, 2016, at 4:30 to discuss the audit draft, confidential auditing report, and the quarterly investment report. Committee member Mathisen asked staff if they would be willing to help members who are interested in learning more about the interchanging of the different funds and basically how the general accounting system works, and how one account interacts with another, just maybe a general overview would be helpful; and, if they would be open to having a balance sheet available on a quarterly basis. Chief Financial Officer Brian Hogan replied he would be open to that suggestion. City of Colleyville Page 3 Comprehensive Plan Advisory Committee Minutes - DRAFT November 15, 2016 4.ADJOURNMENT The Audit Committee meeting adjourned at 5:00 p.m. APPROVED BY A VOTE OF ___ AYES, ___ NAYS, AND ___ ABSTENTIONS ON THIS THE ________ DAY OF ____________. Minutes taken and prepared by: Amy Shelley, TRMC City Secretary 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 3a Agenda Date 01/17/2017 Number Type Presentation and Discussion Department City Manager Title Discussion of the draft Fiscal Year 2016 (FY16) Audit and SAS 114 Letter Strategy Map Connection F1- Protect and preserve the City’s top financial ratings Explanation John Manning, Partner with Pattillo, Brown & Hill, L.L.P., will meet with the Audit Committee to discuss the draft of the Fiscal Year September 30, 2016 audit and SAS 114 Letter. Attachments 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 3b Agenda Date 01/17/2017 Number Type Presentation Department City Manager Title Presentation of the Quarterly Investment Report for the quarter ended December 31, 2016 Strategy Map Connection F4- Adhere to the City’s financial and budgetary policies Explanation During the period of September 1, 2016 through December 31, 2016, the City of Colleyville had an average of $52,909,671 invested on a daily basis, which earned $103,242, with an average yield of 0.77%. The average yield on investments for this quarter is 0.12% higher than the prior quarter's average of 0.65%. As of December 31, 2016, the City had $51,041,016 invested in the LOGIC Investment Pool, CDARS Certificates of Deposit and various debt instruments in the following percentages: Logic 48.38%FFCB Notes 17.97% FHLB Notes 14.33%FHLMC Notes 6.05% FNMA Notes 4.04%CDARS CD's 9.23% These percentages are within the guidelines for portfolio diversification in the City's investment policy. The market value of the City's investments on December 31, 2016 was $20,966,212 as compared to a purchase price of $21,011,013 (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 $499,785 and a purchase price of $499,750. Additionally, $1,005,874 was invested in the Corporation's name in the LOGIC Investment Pool. These funds earned interest of $2,920 for the quarter. Attachments 1.December 2016 Investment Report Cover Letter 2.December 2016 Quarterly Investment Report 3.LOGIC quarterly news letter 4.DFW Economic Indicators - December 2016 City of Colleyville, Texas Quarterly Investment Report December 31, 2016 Report Highlights As mentioned in last quarter’s report, I made some changes to the report to give the committee members, City Council, and all others a different view of the financial holdings and liquidity position of the City of Colleyville. As with previously presented reports, this investment report is in compliance with the Public Funds Investment Act and the City’s adopted Investment Policy. The list of Outstanding Investments, Interest Earnings on Investments, Investments by Fund, the CDARS Certificate of Deposit Allocation, and Logic Investment Pool Allocation by Fund is included in the same format as previous reports. In addition to these required reports, the following new reports have been added.  CASH & INVESTMENT SUMMARY BY FUND This report is an overview of the positions held within each fund. The LOGIC, INVESTMENT, and CDARS holdings are detailed in the supplemental reports which are included.  CONSOLIDATED INVESTMENT HOLDINGS MEASUREMENT DATA This report shows the City’s current holdings with measurement data (yield and maturity) for each investment type. It includes the 13 week Treasury coupon rate equivalent which is our benchmark. This benchmark is provided by the Treasury.gov website.  TREASURY & AGENCY INVESTMENTS BY MATURITY This report shows our treasury and agency holdings by maturity. The graphical presentation shows the maturity dates with investment yield for each holding.  TREASURY & AGENCY INVESTMENTS BY TYPE This report shows our treasury and agency holdings by investment type. The graphical presentation shows the distribution by instrument for investments held.  COLLEYVILLE ECONOMIC DEVELOPMENT COPORATION SUMMARY This is the same as the consolidated report but only for the CEDC holdings. I have also included the LOGIC (Local Government Investment Corporation) quarterly newsletter and the Dallas Federal Reserve’s DFW Economic Indicators report. These reports give the readers additional background information that is important in understanding the report. News in the Markets Dallas-Fort Worth economic growth continued to expand at a vigorous pace in December. EMPLOYMENT DFW employment continued to expand at an annualized rate of 4.0% for December. DFW year to date job growth of 2.7% is more than a full percentage point faster than that of the state (1.6%) and the U.S (1.5%). DFW job growth has been broad based, with all major sectors adding jobs. Continued healthy growth in the U.S. economy has been a tailwind for the area because the DFW industry mix more closely resembles that of the nation. In December, the unemployment rate dipped to 4.1% in Dallas and 3.2% in Fort Worth. Both figures remain lower than the U.S. rate which edged down to 4.6%. HOUSING DFW home inventories remain tight at 2.2 months’ supply, well below the six months’ supply typically associated with a balanced market. Inventories have been around the two-month level since late 2014. The supply of homes priced $200,000 or under is even lower at around 1 month for the DFW area. RATES Prior to the election, rates in the U.S. had already been picking up as data showed that the economy was poised for growth. Expectations of fiscal spending led the markets to price in a large upswing in inflation as well as rising energy prices. The Federal Open Markets Committee (FOMC) decided unanimously to raise the Fed Funds rate 25 basis points at their meeting in December. In addition, the median projection for short-term rates has shifted to three (3) rate hikes in 2017 up from prior expectations of two (2). CITY OF COLLEYVILLE INVESTMENT REPORT TERMINOLOGY RATES/MEASUREMENT DATA BANK EARNED INCOME CREDIT This is the interest rate our depository bank (Wells Fargo) will pay us on our deposits to offset bank service charges. We will never “earn” more than the bank fees in a given month. AVERAGE QUARTERLY YIELD This is the average interest rate earned for each of the three months on our LOGIC (overnight investment pool). AVERAGE WEIGHTED YIELD The weighted average yield is the return on each investment that is “weighted” based on the value of the investment in relation to total value of investments held. AVERAGE WEIGHTED MATURITY The weighted average maturity is the number of days to maturity for each investment that is “weighted” based on the value of the investment in relation to total value of investments held. 13 WEEK TREASURY BENCHMARK Treasury and Agency notes are backed 100% by the U.S Government. These are the most secure investment types and there is virtually no risk involved with loss of principal. The securities have a 1 or 2 year maturity term. The Treasury.gov website gives a coupon equivalent for these securities for 13 weeks (1/4 or quarter of a fiscal year). INVESTMENT PRICES PURCHASE PRICE (BASIS) This is what the City paid for the investment. PAR VALUE This represents what the investment will be worth at maturity date. INVESTMENT TYPES CDARS Certificate of Deposit Account Registry Service This is the most convenient way to access FDIC insurance on multi-million dollar CD deposits and to earn CD level rates. For Colleyville, the money is invested locally with Worthington Bank. AGENCY SECURITIES “Agency” is a term used to describe two types of bonds: (1) issued or guaranteed by the U.S. Federal Government or (2) issued by government sponsored enterprises. They are the highest quality debt instrument after Treasury securities. The market believes these securities have an implicit backing of the U.S. Government. FEDERAL HOME LOAN BANK FEDERAL FARM CREDIT BANK FEDERAL HOME LOAN MORTGAGE CORPORATION FEDERAL NATIONAL MORTGAGE ASSOCIATION The City does NOT invest in any non-agency mortgage backed securities. Non-agency mortgage backed securities were the instruments involved in the housing crisis that occurred in 2001-2007. QUARTERLY INVESTMENT REPORT FOR QUARTER ENDING DECEMBER 31, 2016 THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT AND ADOPTED INVESTMENT POLICY STRATEGY Po r t f o l i o I n v e s t m e n t R e p o r t fo r t h e Q u a r t e r E n d i n g D e c e m b e r 3 1 , 2 0 1 6 CO N S O L I D A T E D I N V E S T M E N T R E P O R T CA S H L O G I C I N V E S T M E N T S C D A R S T O T A L 00 1 G E N E R A L F U N D 85 2 , 6 2 3 . 1 1 $ 7 7 4 , 6 5 6 . 1 5 $ $ 7 , 0 1 5 , 2 1 8 . 4 3 4 , 0 6 4 , 0 0 4 . 9 5 $ 1 2 , 7 0 6 , 5 0 2 . 6 4 $ 00 4 D E B T S E R V I C E F U N D (6 5 , 0 2 6 . 4 1 ) 8 3 4 , 2 1 6 . 6 8 - - 7 6 9 , 1 9 0 . 2 7 00 3 C A P I T A L P R O J E C T S 14 , 0 7 3 , 2 0 5 . 0 8 4 4 7 , 7 2 1 . 6 7 1 , 8 6 8 , 2 7 6 . 9 5 - 1 6 , 3 8 9 , 2 0 3 . 7 0 01 2 P A R K L A N D D E D I C A T I O N 46 2 , 1 8 6 . 8 2 - 1 , 2 5 3 , 1 7 0 . 2 7 - 1 , 7 1 5 , 3 5 7 . 0 9 01 4 K I M Z E Y P A R K - - - - - 03 2 V E H I C L E A N D C A P I T A L R E P L A C E M E N T 30 1 , 9 5 2 . 6 0 8 2 , 4 7 9 . 6 6 5 1 4 , 3 0 0 . 0 0 - 8 9 8 , 7 3 2 . 2 6 03 4 C O L L E Y V I L L E T O M O R R O W 12 4 , 0 0 9 . 3 7 1 , 6 8 0 , 4 9 8 . 9 1 4 7 5 , 4 4 1 . 7 6 - 2 , 2 7 9 , 9 5 0 . 0 4 03 5 P A R K S T O M O R R O W (2 4 , 6 6 9 . 2 2 ) 1 , 0 4 9 , 8 2 4 . 9 1 - - 1 , 0 2 5 , 1 5 5 . 6 9 00 5 V O L U N T E E R P A R K F U N D 57 4 , 9 8 4 . 1 9 - 2 5 0 , 0 0 0 . 0 0 - 8 2 4 , 9 8 4 . 1 9 00 7 D O N A T I O N S F U N D 61 , 2 2 4 . 7 0 - - - 6 1 , 2 2 4 . 7 0 01 1 L I B R A R Y F U N D 43 , 9 2 3 . 6 0 - 3 5 9 , 6 4 2 . 5 2 - 4 0 3 , 5 6 6 . 1 2 01 5 P O L I C E A S S E T F O R F E I T U R E 2, 1 1 2 . 1 5 - - - 2 , 1 1 2 . 1 5 01 6 T D P A G R A N T 8, 1 3 2 . 9 3 - - - 8 , 1 3 2 . 9 3 01 8 T R E E P R E S E R V A T I O N 27 , 7 6 6 . 3 1 - - - 2 7 , 7 6 6 . 3 1 01 9 L I B R A R Y D O N A T I O N 14 4 , 9 5 8 . 7 0 - - - 1 4 4 , 9 5 8 . 7 0 02 0 R E C R E A T I O N A L E V E N T 11 , 7 6 9 . 7 9 - - - 1 1 , 7 6 9 . 7 9 02 1 C O L L E Y V I L L E C E N T E R D E V E L O P M E N T 5, 8 5 7 . 2 7 - - - 5 , 8 5 7 . 2 7 02 2 R E C Y L C I N G 1, 6 2 7 . 1 6 - - - 1 , 6 2 7 . 1 6 02 3 L E O S E 2, 6 1 8 . 0 9 - - - 2 , 6 1 8 . 0 9 02 7 C R I M E D I S T R I C T 50 1 , 2 9 3 . 6 8 8 1 9 , 7 6 3 . 0 3 - - 1 , 3 2 1 , 0 5 6 . 7 1 02 8 K I D S V I L L E M A I N T E N A N C E 18 , 9 3 8 . 2 6 - - - 1 8 , 9 3 8 . 2 6 02 9 C O U R T T E C H N O L O G Y 10 3 , 7 1 8 . 5 5 - - - 1 0 3 , 7 1 8 . 5 5 03 0 C O U R T S E C U R I T Y 70 , 0 3 3 . 5 9 - - - 7 0 , 0 3 3 . 5 9 03 3 P U B L I C A R T 7, 9 0 4 . 0 5 - - - 7 , 9 0 4 . 0 5 03 7 J U V E N I L E C A S E M A N A G E R 19 , 2 1 7 . 6 6 - - - 1 9 , 2 1 7 . 6 6 00 2 U T I L I T Y F U N D 4, 0 3 6 , 8 8 0 . 4 9 4 , 5 2 6 , 3 9 9 . 7 5 5 , 5 2 4 , 1 9 3 . 9 5 5 0 8 , 3 3 8 . 6 5 1 4 , 5 9 5 , 8 1 2 . 8 4 01 7 D R A I N A G E F E E 75 5 , 9 1 5 . 8 8 9 4 7 , 5 3 0 . 0 7 2 0 0 , 0 0 0 . 0 0 - 1 , 9 0 3 , 4 4 5 . 9 5 00 6 S E S Q U I C E N T I N I A L F U N D 19 , 9 9 0 . 6 8 - - - 1 9 , 9 9 0 . 6 8 00 8 E M P L O Y E E A C T I V I T Y 6, 1 0 5 . 0 3 - - - 6 , 1 0 5 . 0 3 02 6 T I F F U N D 1, 0 0 4 , 5 4 2 . 0 4 1 2 , 7 9 9 , 9 2 3 . 3 6 3 , 5 5 0 , 7 6 9 . 1 2 - 1 7 , 3 5 5 , 2 3 4 . 5 2 23 , 1 5 3 , 7 9 6 . 1 5 $ 2 3 , 9 6 3 , 0 1 4 . 1 9 $ 2 1 , 0 1 1 , 0 1 3 . 0 0 $ 4 , 5 7 2 , 3 4 3 . 6 0 $ 7 2 , 7 0 0 , 1 6 6 . 9 4 $ 02 4 C E D C 2, 0 4 1 , 9 5 0 . 5 8 $ 9 4 0 , 7 8 2 . 8 5 $ 4 9 9 , 7 5 0 . 0 0 - $ 3 , 4 8 2 , 4 8 3 . 4 3 $ 02 5 C E D C - C A P I T A L 70 3 . 1 0 6 5 , 0 9 0 . 8 3 - - 6 5 , 7 9 3 . 9 3 2, 0 4 2 , 6 5 3 . 6 8 $ 1 , 0 0 5 , 8 7 3 . 6 8 $ 4 9 9 , 7 5 0 . 0 0 $ - $ 3 , 5 4 8 , 2 7 7 . 3 6 $ FI D U C I A R Y F U N D S CO M P O N E N T U N I T CO L L E Y V I L L E E C O N D E V C O R P CA P I T A L P R O J E C T F U N D S SP E C I A L R E V E N U E F U N D S GO V E R N M E N T A L F U N D S DE B T S E R V I C E F U N D S EN T E R P R I S E F U N D S FI D U C I A R Y F U N D S GO V E R N M E N T A L F U N D S EN T E R P R I S E F U N D S Po r t f o l i o I n v e s t m e n t R e p o r t fo r t h e Q u a r t e r E nd i n g D e c e m b e r 3 1 2 0 1 6 CO N S O L I D A T E D I N V E S T M E N T R E P O R T Cu r r e n t L a s t Q u a r t e r As o f A s o f Ca s h a n d I n v e s t m e n t B a l a n c e s 1 2 / 3 1 / 2 0 1 6 9 / 3 0 / 2 0 1 6 Ca s h B a l a n c e s 2 3 , 1 5 3 , 7 9 6 . 1 5 $ 15,480,728.32 $ LO G I C B a l a n c e s 2 3 , 9 6 3 , 0 1 4 . 1 9 2 3 , 912,214.12 In v e s t m e n t P o r t f o l i o B a l a n c e s ( c o s t ) 2 1 , 0 1 1 , 0 1 3 . 0 0 2 5 , 830,501.35 Ce r t i f i c a t e s o f D e p o s i t B a l a n c e s 4 , 5 7 2 , 3 4 3 . 6 0 4 , 572,343.60 To t a l C a s h , L o g i c , & O t h e r I n v e s t m e n t s 7 2 , 7 0 0 , 1 6 6 . 9 4 $ 69,795,787.39 $ In v e s t m e n t Y i e l d s , M a t u r i t i e s , a n d I n t e r e s t Ba n k E a r n e d I n c o m e C r e d i t 0 . 6 0 % 0 . 6 0 % 13 W e e k T r e a s u r y B e n c h m a r k 0 . 5 1 % 0 . 2 8 % Lo g i c A v e r a g e Q u a r t e r l y Y i e l d 0 . 8 4 % 0 . 6 4 % Lo g i c E n d o f Q u a r t e r W e i g h t e d M a t u r i t y 6 1 5 6 Av e r a g e W e i g h t e d Y i e l d : A g e n c y 0 . 8 0 % 0 . 7 4 % Av e r a g e W e i g h t e d M a t u r i t y : A g e n c y 3 4 8 3 4 2 Av e r a g e W e i g h t e d Y i e l d : C D A R S 0 . 4 8 % 0 . 4 8 % Av e r a g e W e i g h t e d M a t u r i t y : C D A R S 3 2 9 4 2 1 In t e r e s t E a r n i n g s - Q u a r t e r 1 0 3 , 2 4 2 $ 8 8 , 7 7 9 $ In t e r e s t R a t e / Y i e l d f o r t h e Q u a r t e r 0 . 7 7 % 0 . 6 5 % Po r t f o l i o I n v e s t m e n t R e p o r t fo r t h e Q u a r t e r E n d i n g D e c e m b e r 3 1 2 0 1 6 CO N S O L I D A T E D I N V E S T M E N T R E P O R T D i s t r i b u t i o n b y M a t u r i t y N u m b e r 1 t o 9 0 d a y s 0 - $ 0 . 0 0 % - $ 91 t o 1 8 0 d a y s 4 3 , 7 5 5 , 4 2 0 . 0 0 1 7 . 8 7 % 3,751,140.50 18 1 t o 3 6 5 d a y s 9 9 , 0 5 5 , 1 5 3 . 0 0 4 3 . 1 0 % 9,047,016.85 Ov e r 3 6 5 d a y s 8 8 , 2 0 0 , 4 4 0 . 0 0 3 9 . 0 3 % 8,168,054.40 To t a l 2 1 2 1 , 0 1 1 , 0 1 3 . 0 0 $ 1 0 0 . 00 % 2 0 , 9 6 6 , 2 1 1 . 7 5 $ Ou t s t a n d i n g P o r t f o l i o ( e x c l u d i n g C a s h / L o g i c / C D ) Am o u n t Pe r c e n t (V a l u e ) Ma r k e t V a l u e Po r t f o l i o I n v e s t m e n t R e p o r t fo r t h e Q u a r t e r E n d i n g D e c e m b e r 3 1 2 0 1 6 CO N S O L I D A T E D I N V E S T M E N T R E P O R T D i s t r i b u t i o n b y T y p e o f I n v e s t m e n t N u m b e r Fe d e r a l H o m e L o a n B a n k 7 $ 7 , 1 0 4 , 8 0 8 3 3 . 8 % $ 7 , 0 9 5 , 0 7 8 Fe d e r a l F a r m C r e d i t B a n k 9 $ 8 , 8 9 9 , 4 4 0 4 2 . 4 % $ 8 , 8 7 6 , 5 7 8 Fe d e r a l H o m e L o a n M o r t g a g e C o r p o r a t i o n 3 $ 3 , 0 0 3 , 2 6 5 1 4 . 3 % $ 2 , 9 9 5 , 8 3 3 Fe d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n 2 $ 2 , 0 0 3 , 5 0 0 9 . 5 % $ 1 , 9 9 8 , 7 2 2 U. S . T r e a s u r i e s 0 - 0 . 0 % - To t a l 2 1 2 1 , 0 1 1 , 0 1 3 . 0 0 $ 10 0 . 0 % 2 0 , 966,211.75 $ Ou t s t a n d i n g P o r t f o l i o ( e x c l u d i n g C a s h / L o g i c / C D ) Am o u n t Pe r c e n t (V a l u e ) Ma r k e t V a l u e Po r t f o l i o I n v e s t m e n t R e p o r t fo r t h e Q u a r t e r E n d i n g S e p t e m b e r 3 0 2 0 1 6 CO L L E Y V I L L E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N ( C E D C ) Cu r r e n t L a s t Q u a r t e r As o f A s o f Ca s h a n d I n v e s t m e n t B a l a n c e s 9 / 3 0 / 2 0 1 6 6 / 3 0 / 2 0 1 6 Ca s h B a l a n c e s 2 , 0 4 2 , 6 5 3 . 6 8 $ 1 , 6 6 4 , 0 9 9 . 3 2 $ Lo g i c B a l a n c e s 1 , 0 0 5 , 8 7 3 . 6 8 1 , 0 0 3 , 7 4 1 . 2 9 In v e s t m e n t P o r t f o l i o B a l a n c e s $ 4 9 9 , 7 5 0 . 0 0 4 9 9 , 7 5 0 . 0 0 Ce r t i f i c a t e s o f D e p o s i t B a l a n c e s - - To t a l C a s h , L o g i c , & O t h e r I n v e s t m e n t s 3 , 5 4 8 , 2 7 7 . 3 6 $ 3 , 1 6 7 , 5 9 0 . 6 1 $ In v e s t m e n t Y i e l d s , M a t u r i t i e s , a n d I n t e r e s t Ba n k E a r n e d I n c o m e C r e d i t 0 . 6 0 % 0 . 6 0 % 13 W e e k T r e a s u r y B e n c h m a r k 0 . 5 1 % 0 . 2 8 % Lo g i c A v e r a g e Q u a r t e r l y Y i e l d 0 . 8 4 % 0 . 6 4 % Lo g i c E n d o f Q u a r t e r W e i g h t e d M a t u r i t y 6 1 5 6 Av e r a g e W e i g h t e d Y i e l d : A g e n c y 0 . 6 3 % 0 . 6 3 % Av e r a g e W e i g h t e d M a t u r i t y : A g e n c y 2 1 2 3 0 4 In t e r e s t E a r n i n g s - Q u a r t e r 2 , 9 2 0 $ 2 , 4 0 3 $ In t e r e s t R a t e / Y i e l d f o r t h e Q u a r t e r 0 . 7 7 % 0 . 6 3 % D i s t r i b u t i o n b y M a t u r i t y N u m b e r 1 t o 9 0 d a y s 0 - $ 0 . 0 0 % - $ 91 t o 1 8 0 d a y s 0 - 0 . 0 0 % - 18 1 t o 3 6 5 d a y s 1 4 9 9 , 7 5 0 . 0 0 1 0 0 . 0 0 % 4 9 9 , 9 8 0 . 5 0 Ov e r 3 6 5 d a y s 0 - 0 . 0 0 % - To t a l 1 4 9 9 , 7 5 0 . 0 0 $ 1 0 0 . 0 0 % 4 9 9 , 9 8 0 . 5 0 $ D i s t r i b u t i o n b y T y p e o f I n v e s t m e n t N u m b e r Fe d e r a l H o m e L o a n B a n k 0 - $ 0 . 0 % - $ Fe d e r a l F a r m C r e d i t B a n k 0 - 0 . 0 % - Fe d e r a l H o m e L o a n M o r t g a g e C o r p o r a t i o n 0 - 0 . 0 % - Fe d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n 0 - 0 . 0 % - U. S . T r e a s u r i e s 1 4 9 9 , 7 5 0 . 0 0 1 0 0 . 0 % 4 9 9 , 9 8 0 . 5 0 To t a l 1 4 9 9 , 7 5 0 . 0 0 $ 1 0 0 . 0 % 4 9 9 , 9 8 0 . 5 0 $ Ou t s t a n d i n g P o r t f o l i o ( e x c l u d i n g C a s h & L o g i c ) Am o u n t Pe r c e n t (V a l u e ) Ma r k e t V a l u e Ou t s t a n d i n g P o r t f o l i o ( e x c l u d i n g C a s h / L o g i c / C D ) Am o u n t Pe r c e n t (V a l u e ) Ma r k e t V a l u e QUARTERLY INVESTMENT REPORT FOR QUARTER ENDING DECEMBER 31, 2016 DETAILED INVESTMENT HOLDINGS THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT AND ADOPTED INVESTMENT POLICY STRATEGY OUTSTANDING INVESTMENTS AT DECEMBER 31, 2016 PURCHASE PAR MARKET VALUE MATURITY YIELD ON PRICE VALUE @ 12/31/16 DATE INVESTMENT FHLB NOTE $1,003,800 $1,000,000 $1,000,696 4/7/2017 0.735% FHLB NOTE $750,000 $750,000 $750,167 6/12/2017 0.820% FFCB NOTE $1,001,230 $1,000,000 $1,000,299 6/16/2017 0.735% FHLB NOTE $1,000,390 $1,000,000 $999,979 6/30/2017 0.710% FHLMC NOTE $1,004,385 $1,000,000 $1,000,820 7/28/2017 0.600% FFCB NOTE $1,003,690 $1,000,000 $999,358 8/28/2017 0.580% FFCB NOTE $1,000,000 $1,000,000 $1,000,010 9/14/2017 0.780% FFCB NOTE $897,660 $900,000 $898,061 10/13/2017 0.785% FHLB NOTE $1,199,868 $1,200,000 $1,198,153 10/26/2017 0.630% FNMA NOTE $999,800 $1,000,000 $1,000,140 10/26/2017 0.885% FFCB NOTE $999,000 $1,000,000 $998,423 11/6/2017 0.811% FHLB NOTE $750,750 $750,000 $751,865 12/8/2017 1.072% FHLB NOTE $1,200,000 $1,200,000 $1,200,186 12/29/2017 1.010% FFCB NOTE $1,000,580 $1,000,000 $996,225 2/12/2018 0.771% FHLMC NOTE $999,030 $1,000,000 $998,703 3/7/2018 0.925% FHLMC NOTE $999,850 $1,000,000 $996,310 4/9/2018 0.758% FNMA NOTE $1,003,700 $1,000,000 $998,582 4/30/2018 0.811% FFCB NOTE $997,400 $1,000,000 $994,277 5/16/2018 0.882% FHLB NOTE $1,200,000 $1,200,000 $1,194,032 6/5/2018 0.850% FFCB NOTE $999,300 $1,000,000 $993,692 7/18/2018 0.785% FFCB NOTE $1,000,580 $1,000,000 $996,233 10/5/2018 0.930% TOTAL OUTSTANDING INVESTMENTS $21,011,013 $21,000,000 $20,966,212 CITY OF COLLEYVILLE BALANCES AT DECEMBER 31, 2016 INVESTMENT PURCHASES $21,000,000 CDAR'S CERTIFICATES OF DEPOSIT $4,572,344 LOGIC INVESTMENT POOL $23,963,014 TOTAL CITY INVESTMENTS HELD AT DECEMBER 31, 2016 $49,535,358 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION (CEDC) BALANCES AT DECEMBER 31, 2016 INVESTMENT PURCHASES $499,785 LOGIC INVESTMENT POOL $1,005,874 TOTAL CEDC INVESTMENTS HELD AT DECEMBER 31, 2016 $1,505,659 TOTAL INVESTMENTS HELD BY CITY OF COLLEYVILLE AND COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION AT DECEMBER 31, 2016 $51,041,016 INTEREST EARNINGS ON CITY OF COLLEYVILLE INVESTMENTS FOR THE PERIOD OF OCT 1 - DEC 31, 2016 PURCHASE PAR MATURITY YIELD ON INTEREST PRICE VALUE DATE INVESTMENT EARNED FHLB NOTE $1,000,590 $1,000,000 10/17/2016 0.470% $219 FFCB NOTE $1,015,700 $1,000,000 11/22/2016 0.375% $545 FHLB NOTE $1,201,546 $1,200,000 11/23/2016 0.560% $994 FHLB NOTE $1,301,014 $1,300,000 12/12/2016 0.660% $1,717 TREASURY NOTE $1,301,219 $1,300,000 12/15/2016 0.562% $1,522 FHLB NOTE $1,003,800 $1,000,000 4/7/2017 0.735% $1,853 FHLB NOTE $750,000 $750,000 6/12/2017 0.820% $1,550 FFCB NOTE $1,001,230 $1,000,000 6/16/2017 0.735% $1,853 FHLB NOTE $1,000,390 $1,000,000 6/30/2017 0.710% $1,790 FHLMC NOTE $1,004,385 $1,000,000 7/28/2017 0.600% $1,512 FFCB NOTE $1,003,690 $1,000,000 8/28/2017 0.580% $1,462 FFCB NOTE $1,000,000 $1,000,000 9/14/2017 0.780% $1,966 FFCB NOTE $897,660 $900,000 10/13/2017 0.785% $1,781 FHLB NOTE $1,199,868 $1,200,000 10/26/2017 0.630% $1,907 FNMA NOTE $999,800 $1,000,000 10/26/2017 0.885% $2,231 FFCB NOTE $999,000 $1,000,000 11/6/2017 0.811% $2,044 FHLB NOTE $750,750 $750,000 12/8/2017 1.072% $2,027 FHLB NOTE $1,200,000 $1,200,000 12/29/2017 1.010% $3,055 FFCB NOTE $1,000,580 $1,000,000 2/12/2018 0.771% $1,942 FHLMC NOTE $999,030 $1,000,000 3/7/2018 0.925% $2,332 FHLMC NOTE $999,850 $1,000,000 4/9/2018 0.758% $1,910 FNMA NOTE $1,003,700 $1,000,000 4/30/2018 0.811% $2,044 FFCB NOTE $997,400 $1,000,000 5/16/2018 0.882% $2,224 FHLB NOTE $1,200,000 $1,200,000 6/5/2018 0.850% $2,571 FFCB NOTE $999,300 $1,000,000 7/18/2018 0.785% $1,979 FFCB NOTE $1,000,580 $1,000,000 10/5/2018 0.930% $1,911 TOTAL INTEREST EARNED ON CITY INVESTMENTS HELD OCT 1, 2016 THROUGH DEC 31, 2016 $46,942 RECAP OF MARKET VALUES ON CITY OF COLLEYVILLE INVESTMENTS HELD OCT 1 - DEC 31, 2016 INVESTMENT PURCHASE MATURITY PURCHASE PAR MARKET LESS PLUS MARKET DATE DATE PRICE VALUE VALUE MATURITY PERIOD VALUE @ 9-30-16 PROCEEDS PURCHASES @ 12-31-16 FHLB NOTE 10/22/2014 10/17/2016 $1,000,590 $1,000,000 $1,000,100 $1,000,000 N/A $0 FHLB NOTE 11/24/2014 11/23/2016 $1,201,546 $1,200,000 $1,200,552 $1,200,000 N/A $0 FHLB NOTE 12/18/2014 12/12/2016 $1,301,014 $1,300,000 $1,300,963 $1,300,000 N/A $0 TREASURY NOTE 6/15/2015 12/15/2016 $1,301,219 $1,300,000 $1,300,919 $1,300,000 N/A $0 FHLB NOTE 6/19/2015 6/12/2017 $750,000 $750,000 $751,310 N/A N/A $750,167 FHLB NOTE 6/24/2015 4/7/2017 $1,003,800 $1,000,000 $1,002,108 N/A N/A $1,000,696 FHLB NOTE 7/6/2015 6/30/2017 $1,000,390 $1,000,000 $1,001,281 N/A N/A $999,979 FFCB NOTE 7/15/2015 6/16/2017 $1,001,230 $1,000,000 $1,001,675 N/A N/A $1,000,299 FFCB NOTE 9/16/2015 9/14/2017 $1,000,000 $1,000,000 $1,001,224 N/A N/A $1,000,010 FFCB NOTE 10/19/2015 8/28/2017 $1,003,690 $1,000,000 $1,001,191 N/A N/A $999,358 FHLB NOTE 10/19/2015 10/26/2017 $1,199,868 $1,200,000 $1,198,931 N/A N/A $1,198,153 FHLMC NOTE 10/22/2015 7/28/2017 $1,004,385 $1,000,000 $1,001,783 N/A N/A $1,000,820 FFCB NOTE 11/4/2015 11/22/2016 $1,015,700 $1,000,000 $1,002,248 $1,000,000 N/A $0 FFCB NOTE 11/4/2015 10/13/2017 $897,660 $900,000 $899,425 N/A N/A $898,061 FFCB NOTE 11/12/2015 11/6/2017 $999,000 $1,000,000 $999,743 N/A N/A $998,423 FNMA NOTE 11/13/2015 10/26/2017 $999,800 $1,000,000 $1,001,639 N/A N/A $1,000,140 FHLB NOTE 12/29/2015 12/29/2017 $1,200,000 $1,200,000 $1,200,961 N/A N/A $1,200,186 FHLB NOTE 1/5/2016 12/8/2017 $750,750 $750,000 $753,425 N/A N/A $751,865 FFCB NOTE 2/17/2016 2/12/2018 $1,000,580 $1,000,000 $999,759 N/A N/A $996,225 FHLMC NOTE 3/23/2016 3/7/2018 $999,030 $1,000,000 $1,000,784 N/A N/A $998,703 FHLMC NOTE 4/12/2016 4/9/2018 $999,850 $1,000,000 $999,096 N/A N/A $996,310 FNMA NOTE 5/9/2016 4/30/2018 $1,003,700 $1,000,000 $1,002,499 N/A N/A $998,582 FFCB NOTE 5/20/2016 5/16/2018 $997,400 $1,000,000 $999,237 N/A N/A $994,277 FHLB NOTE 6/10/2016 6/5/2018 $1,200,000 $1,200,000 $1,199,477 N/A N/A $1,194,032 FFCB NOTE 7/18/2016 7/18/2018 $999,300 $1,000,000 $997,894 N/A N/A $993,692 FFCB NOTE 10/17/206 10/5/2018 $1,000,580 $1,000,000 $0 N/A $1,000,580 $996,233 TOTALS $25,818,223 $5,800,000 $1,000,580 $20,966,212 LISTING OF INVESTMENTS BY GENERAL LEDGER ACCOUNT NUMBER INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY COUPON RATE CUSIP# ACCOUNT ALLOCATION OF INVESTMENT INVESTMENT- G/L TOTAL 001-1172 GENERAL FUND OPERATING $7,015,218.43 002-1166 UTILITY DEBT SERVICE RESERVE $0.00 002-1172 UTILITY FUND OPERATING $2,738,637.59 002-1178 CUSTOMER DEPOSITS $456,550.00 002-1186 UTILITY LINE RENEWAL $2,266,902.59 002-1557 THE RESERVE LIFT STATION $62,103.77 003-1180 BEDFORD BRIDGE ESCROW $0.00 003-1188 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 $0.00 003-1229 GLADE RD SUMMERBROOK $0.00 003-1231 LAKEWOOD ESCROW $26,103.65 003-1236 E. GLADE CRANBROOK ESCROW $117,794.09 003-1237 E. GLADE ASHMORE I ESCROW $0.00 003-1247 GLADE/WAYSIDE ESCROW $42,420.01 003-1250 REATTA PLACE $98,462.36 003-1257 ASHMORE II A GLADE RD ESCROW $0.00 003-1268 MILL CREEK/ GLADE ESCROW $0.00 003-1271 ASHMORE III/ GLADE ESCROW $0.00 003-1278 GLADE RD/ASHMORE IIB ESCROW $0.00 003-1301 LAKEWOOD PH IV $77,530.57 003-1304 VILLAS DEL MAR $60,324.37 003-1307 STREET RECONSTRUCTION $247,753.20 003-1309 COVENANT CHRISTIAN $140,343.10 003-1319 REMINGTON PARK $27,855.96 003-1323 SHALIMAR $69,691.33 003-1325 PECAN GARDENS $0.00 003-1330 REMINGTON PARK $0.00 003-1340 CASTLETON MANOR $81,309.57 003-1357 CITGO/LD LOCKETT $56,809.28 003-1392 CLAIRMONT-PH I $104,974.96 003-1404 TANGLEWOOD $26,111.30 003-1418 CLAIRMONT-PH II $147,050.32 003-1429 WARWICK PARC $89,131.60 003-1434 ROCKRIMMON $65,055.06 003-1486 CHANEL'S COURT $47,895.39 003-1563 VILLAS OF COLLEYVILLE $52,979.48 005-1172 VOLUNTARY PARK FUND $250,000.00 011-1172 LIBRARY DONATIONS FUND $359,642.52 012-1172 PARK LAND DEDICATION FUND $1,253,170.27 017-1172 DRAINAGE FUND OPERATING $200,000.00 024-1172 CEDC OPERATING $499,750.00 026-1172 TIF OPERATING $3,550,769.12 032-1519 CAPITAL EQUIPMENT RESERVE $514,300.00 034-1172 COLLEYVILLE TOMORROW $475,441.76 PER GENERAL LEDGER $21,510,763.00 MARKET VALUE $21,465,996.75 VALUE AT MATURITY $21,500,000.00 INTEREST RECEIVED TO MATURITY 12/31/2016 $335,610.66 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY COUPON RATE CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 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 ESTATES/ESC 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 REATTA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE III/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE IIB ESCROW 003-1301 LAKEWOOD PH IV 003-1304 VILLAS DEL MAR 003-1307 STREET RECONSTRUCTION 003-1309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LD LOCKETT 003-1392 CLAIRMONT-PH I 003-1404 TANGLEWOOD 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1434 ROCKRIMMON 003-1486 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 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY FHLB NOTE FHLB NOTE FFCB NOTE FHLB NOTE FHLMC TREASURY NOTE FFCB NOTE 24-Jun-15 19-Jun-15 15-Jul-15 06-Jul-15 22-Oct-15 31-Jul-15 19-Oct-15 07-Apr-17 12-Jun-17 16-Jun-17 30-Jun-17 28-Jul-17 31-Jul-17 28-Aug-17 0.080% 0.050% 0.110% 0.080% 0.110% 0.140% 0.120% 0.735% 0.820% 0.735% 0.710% 0.600% 0.650% 0.580% 0.950% 0.820% 0.800% 0.730% 0.850% 0.625% 0.780% 313379XB0 3130A5PC7 3133EEX62 3130A5HF9 3134G6AC7 912828XP0 3133EFEU7 848,240.00 190,762.23 402,519.38 1,004,385.00 6,363.67 1,003,800.00 37,511.00 598,710.62 62,103.77 36,326.67 10,996.31 13,380.01 227,978.36 26,103.65 117,794.09 42,420.01 98,462.36 60,324.37 43,849.86 140,343.10 69,691.33 56,809.28 104,974.96 26,111.30 89,131.60 65,055.06 227,197.01 499,750.00 152,150.00 $1,003,800.00 $750,000.00 $1,001,230.00 $1,000,390.00 $1,004,385.00 $499,750.00 $1,003,690.00 $1,000,696.00 $750,166.50 $1,000,299.00 $999,979.00 $1,000,820.00 $499,785.00 $999,358.00 $1,000,000.00 $750,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $500,000.00 $1,000,000.00 $13,155.46 $12,198.67 $14,141.86 $14,105.76 $10,602.95 $6,510.95 $10,791.19 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY COUPON RATE CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 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 ESTATES/ESC 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 REATTA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE III/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE IIB ESCROW 003-1301 LAKEWOOD PH IV 003-1304 VILLAS DEL MAR 003-1307 STREET RECONSTRUCTION 003-1309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LD LOCKETT 003-1392 CLAIRMONT-PH I 003-1404 TANGLEWOOD 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1434 ROCKRIMMON 003-1486 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 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY FFCB NOTE FFCB NOTE FHLB FNMA NOTE FFCB NOTE FHLB NOTE FHLB NOTE 16-Sep-15 04-Nov-15 19-Oct-15 13-Nov-15 12-Nov-15 05-Jan-16 29-Dec-15 14-Sep-17 13-Oct-17 26-Oct-17 26-Oct-17 06-Nov-17 08-Dec-17 29-Dec-17 0.240% 0.270% 0.120% 0.300% 0.340% 0.100% 0.490% 0.780% 0.785% 0.630% 0.885% 0.811% 1.072% 1.010% 0.780% 0.650% 0.625% 0.875% 0.760% 1.125% 1.010% 3133EFCY1 3133EFHY6 3130A6LZ8 3135G0PQ0 3133EFNE3 3130A3HF4 3130A6UK1 1,000,000.00 513,360.00 0.00 999,800.00 265,564.16 351,394.27 20,000.00 499,868.00 198,690.95 239,752.18 176,296.18 165,687.76 245,433.66 45,428.58 626,880.97 77,530.57 27,855.96 81,309.57 147,050.32 47,895.39 52,979.48 200,000.00 700,000.00 364,300.00 $1,000,000.00 $897,660.00 $1,199,868.00 $999,800.00 $999,000.00 $750,750.00 $1,200,000.00 $1,000,010.00 $898,061.40 $1,198,153.20 $1,000,140.00 $998,423.00 $751,865.25 $1,200,186.00 $1,000,000.00 $900,000.00 $1,200,000.00 $1,000,000.00 $1,000,000.00 $750,000.00 $1,200,000.00 $15,578.55 $13,726.27 $15,297.81 $17,293.88 $16,107.24 $15,489.22 $24,273.21 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY COUPON RATE CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 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 ESTATES/ESC 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 REATTA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE III/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE IIB ESCROW 003-1301 LAKEWOOD PH IV 003-1304 VILLAS DEL MAR 003-1307 STREET RECONSTRUCTION 003-1309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LD LOCKETT 003-1392 CLAIRMONT-PH I 003-1404 TANGLEWOOD 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1434 ROCKRIMMON 003-1486 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 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY FFCB NOTE FHLB NOTE FHLMC NOTE FNMA NOTE FFCB NOTE FHLB NOTE 17-Feb-16 23-Mar-16 12-Apr-16 09-May-16 20-May-16 10-Jun-16 12-Feb-18 07-Mar-18 09-Apr-18 30-Apr-18 16-May-18 05-Jun-18 0.420% 0.450% 0.520% 0.370% 0.450% 0.410% 0.771% 0.925% 0.758% 0.811% 0.882% 0.850% 0.800% 0.875% 0.750% 1.000% 0.750% 0.850% 3133EFZR1 3137EADP1 3137EAEA3 3136G0V57 3133EGAF2060 3130A8EJ8 1,000,580.00 39,030.00 999,850.00 0.00 997,400.00 203,903.34 250,000.00 710,000.00 799,796.66 849,650.00 350,350.00 $1,000,580.00 $999,030.00 $999,850.00 $1,003,700.00 $997,400.00 $1,200,000.00 $996,225.00 $998,703.00 $996,310.00 $998,582.00 $994,277.00 $1,194,032.40 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,200,000.00 $15,325.68 $18,096.97 $15,089.51 $16,015.09 $17,546.43 $20,260.23 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY COUPON RATE CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 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 ESTATES/ESC 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 REATTA PLACE 003-1257 ASHMORE II A GLADE RD ESCROW 003-1268 MILL CREEK/ GLADE ESCROW 003-1271 ASHMORE III/ GLADE ESCROW 003-1278 GLADE RD/ASHMORE IIB ESCROW 003-1301 LAKEWOOD PH IV 003-1304 VILLAS DEL MAR 003-1307 STREET RECONSTRUCTION 003-1309 COVENANT CHRISTIAN 003-1319 REMINGTON PARK 003-1323 SHALIMAR 003-1325 PECAN GARDENS 003-1330 REMINGTON PARK 003-1340 CASTLETON MANOR 003-1357 CITGO/LD LOCKETT 003-1392 CLAIRMONT-PH I 003-1404 TANGLEWOOD 003-1418 CLAIRMONT-PH II 003-1429 WARWICK PARC 003-1434 ROCKRIMMON 003-1486 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 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY FFCB NOTE FFCB NOTE 18-Jul-16 17-Oct-16 18-Jul-18 05-Oct-18 0.430% 0.480% 0.785% 0.930% 0.750% 0.960% 3133EGML6 3133EFX69 0.00 359,642.52 115,973.26 200,000.00 549,300.00 499,872.46 150,000.00 100,000.00 25,091.76 $999,300.00 $1,000,580.00 $993,692.00 $996,233.00 $1,000,000.00 $1,000,000.00 $15,706.88 $18,296.88 CDARS CERTIFICATE OF DEPOSIT ALLOCATION CDARS CERTIFICATES OF DEPOSIT FUND ALLOCATION AMOUNT PURCHASE DATE MATURITY DATE INTEREST RATE INTEREST EARNED DURING QUARTER UTILITY FUND $508,338.65 7/30/2015 7/27/2017 0.40% $512.52 GENERAL FUND $510,929.49 6/23/2016 6/21/2018 0.40% $515.13 GENERAL FUND $508,285.09 3/24/2016 3/23/2017 0.30% $384.35 GENERAL FUND $1,524,991.85 9/22/2016 9/21/2017 0.60% $2,299.45 GENERAL FUND $510,047.65 9/22/2016 9/20/2018 0.50% $642.80 GENERAL FUND $504,752.03 9/24/2015 9/21/2017 0.40% $508.90 GENERAL FUND $504,998.84 3/24/2016 3/22/2018 0.50% $636.44 TOTAL $4,572,343.60 $5,499.58 LOGIC INVESTMENT POOL ALLOCATION AND GENERAL INFORMATION LOCAL GOVERNMENT INVESTMENT COOPERATIVE / "LOGIC" ACCOUNT ALLOCATION AT SEPTEMBER 2016 ACCT # DESCRIPTION BALANCE GENERAL FUND 001-1115 GENERAL OPERATING $119,549.06 UTILITY FUND 002-1115 UTILITY OPNS $992,668.41 002-1116 IMPACT FEES WATER $1,254,952.20 002-1119 UTILITY LINE RESTORATION $1,552,231.78 002-1130 UTILITY INTEREST & SINKING FUND $358,457.84 002-1294 IMPACT FEES SEWER $368,089.52 CAPITAL PROJECTS FUND 003-1113 IMPACT FEES/SA I $21,353.65 003-1495 2007 GO FIRE STATION BONDS $100,647.91 003-1508 MICRO-RESURFACING $306,698.06 003-1509 STREET RESURFACING $19,022.05 DEBT SERVICE FUND 004-1115 DEBT SERVICE OPERATING $834,216.68 . DRAINAGE FUND 017-1115 DRAINAGE OPERATING $824,697.26 017-1159 DRAINAGE INT & SINKING FUND $120,489.27 017-1380 2001 DRAINAGE BONDS $2,343.54 TIF FUND 026-1115 TIF OPERATING $12,675,720.43 026-1383 2001 TIF BONDS $124,202.93 CCCPD FUND 027-1115 CCCPD OPERATING $819,681.60 027-1147 99 POLICE/COURT BLDG FUND $81.43 SALES TAX INCENTIVE AGREEMENT FUND 031-1115 SALES TAX INCENTIVE AGREEMENT OPERATIN $356,872.36 CAPITAL EQUIPMENT REPLACEMENT FUND 032-1115 CAPITAL EQUIPMENT REPLACEMENT FUND $82,479.66 COLLEYVILLE TOMORROW FUND 034-1115 COLLEYVILLE TOMORROW FUND $1,680,498.91 PARKS TOMORROW FUND 035-1115 PARKS TOMORROW FUND $1,049,824.91 STRATEGIC INITIATIVES FUND 036-1115 STRATEGIC INITIATIVES FUND $298,234.73 TOTAL LOGIC POOL BALANCE $23,963,014.19 LOGIC STATEMENT (1159664001) 23,862,366.28 LOGIC STATEMENT (1159664002) 100,647.91 23,963,014.19 CEDC Logic Balance 1,005,873.68 LOGIC STATEMENT (2690448010) 1,005,873.68 Total Logic Balance 24,968,887.87 LOGIC STATEMENT BALANCE 24,968,887.87 Ne w s Pe r f o r m a n c e New Participants We would like to welcome the following entities who joined the LOGIC program in December: Mt Pleasant ISD Tuloso-Midway ISD Holiday Reminder In observance of Martin Luther King Jr. holiday, LOGIC will be closed Monday, January 16, 2017. All ACH transactions initiated on Friday, January 13th will settle on Tuesday, January 17th. Conferences LOGIC Representatives will be attending the following upcoming conference. We look forward to visiting with those of you attending this event. Texas Association of School Business Ofﬁ cials (TASBO) Annual Conference - February 27- March 3, Austin LOGIC Newsletter December 2016 E c o n o m i c C o m m e n t a r y Prior to the election, rates in the U.S. had already been picking up as data showed that the economy was poised for growth. Expectations of fiscal spending proposed by president elect Trump led markets to price in a large upswing in inﬂ ation as well as rising energy prices. The Federal Open Market Committee decided unanimously to raise the Fed Funds rate 25 bps. In addition, the median projection for short-term rates has shifted to three rate hikes in 2017 up from two hikes. Since 2010, for all but one quarter, the base case has been that the world’s economies were mired in sub-trend growth and inﬂ ation. More recently, it was expected that the outcome of the U.S. elections would mean more of the same, with gridlock in Washington and little compromise available to change the existing trajectory. A Republican sweep changed all that and expectations for higher growth and inﬂ ation have driven both bond yields and equity prices to recent highs. Has the potential for growth really changed and are even higher rates to come? We think the answer is yes. Two-thirds of the world’s economies—including Europe, China, Japan and the U.S.—were already growing above trend before the U.S. elections. Inﬂ ation was also ticking up, as the base effects of lower oil prices rolled off. The sustainability of that growth was a question, however, given poor demographics and declining productivity in much of the developed world. Now, with no opposition party in the U.S. government, the way has been paved for meaningful ﬁ scal stimulus and both tax and regulatory reform. The change in sentiment portends a new trajectory for corporate investment and sustainable growth. Expectations for stronger growth and higher inﬂ ation are reﬂ ected in the recent move to higher rates. This should provide support for the Federal Reserve to dial down its accommodative stance, as it began to do at its December meeting. Replacing monetary policy, any hint of a slowdown will be met with more ﬁ scal stimulus. We expect the Fed to raise rates another three to four times in 2017 with the 10-year Treasury at 3.00–3.5% by year-end. The U.S. dollar has room to move higher, supported by both higher rates and a transfer of corporate cash from offshore. Monetary policy is no longer the only tool that can be deployed. Fiscal stimulus and structural reform are on the way and the markets have yet to fully appreciate how the central banks will react to their impact and what normalized bond markets will look. This information is an excerpt from an economic report dated December 2016 provided to LOGIC by JPMorgan Asset Management, Inc., the investment manager of the LOGIC pool. *Definition of Weighted Average Maturity (1) & (2) (1) This weighted average maturity calculation uses the SEC Rule 2a-7 deﬁ nition for stated maturity for any ﬂ oating rate instrument held in the portfolio to determine the weighted average maturity for the pool. This Rule speciﬁ es 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 calculation uses the ﬁ nal maturity of any ﬂ oating rate instruments held in the portfolio to calculate the weighted average maturity for the pool. Rates reﬂ ect historical information and are not an indication of future performance. As of December 31, 2016 Current Invested Balance $5,345,321,204.93 Weighted Average Maturity (1)* 26 Days Weighted Average Maturity (2)* 61 Days Net Asset Value 1.000291 Total Number of Participants 506 Management Fee on Invested Balance 0.0875% Interest Distributed $4,030,740.74 Management Fee Collected $363,490.01 % of Portfolio Invested Beyond 1 Year 0.00% Standard & Poor’s Current Rating AAAm December Averages: Average Invested Balance $4,904,155,419.85 Average Monthly Yield, on a simple basis 0.8790% Average Weighted Average Maturity (1)* 31 Days Average Weighted Average Maturity (2)* 72 Days Distribution of Participants by Type As of December 31, 2011 Portfolio by Maturity As of December 31, 2011 In f o r m a t i o n a t a G l a n c e Hi s t o r y Historical Program Information Average Book Market Net Number of Month Rate Value Value Asset Value WAM (1)* WAM (2)* Participants Dec 16 0.8790% $5,345,321,204.93 $5,347,040,518.20 1.000291 31 72 506 Nov 16 0.8364% 4,677,615,888.80 4,679,361,690.19 1.000373 35 73 504 Oct 16 0.8112% 4,286,771,305.76 4,288,329,393.30 1.000363 40 70 502 Sep 16 0.7248% 4,409,871,179.36 4,410,883,048.03 1.000194 45 62 500 Aug 16 0.6218% 4,173,346,305.76 4,174,143,206.62 1.000190 39 57 500 Jul 16 0.5740% 4,222,463,139.86 4,222,665,438.59 1.000047 38 51 497 Jun 16 0.5640% 4,098,495,182.80 4,099,137,783.02 1.000156 38 54 493 May 16 0.5496% 4,112,196,457.64 4,112,970,867.25 1.000188 41 61 490 Apr 16 0.5439% 4,225,726,061.33 4,226,329,499.91 1.000129 35 57 489 Mar 16 0.5206% 4,641,892,583.12 4,642,690,932.90 1.000171 38 59 488 Feb 16 0.4823% 4,916,962,940.50 4,917,463,027.96 1.000101 43 64 486 Jan 16 0.3922% 4,658,046,995.69 4,658,236,771.04 1.000040 41 59 486 As s e t s Book Value Market Value Uninvested Balance $ (2,260.93) $ (2,260.93) Accrual of Interest Income 1,068,191.08 1,068,191.08 Interest and Management Fees Payable (4,155,885.44) (4,155,885.44) Payable for Investment Purchased 0.00 0.00 Receivable for Investment Sold 0.00 0.00 Repurchase Agreements 517,403,999.89 517,403,999.89 Commercial Paper 4,771,010,749.76 4,772,686,953.60 Government Securities 59,996,410.57 60,039,520.00 Total $ 5,345,321,204.93 $ 5,347,040,518.20 Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. 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 Participant Services. Portfolio Asset Summary as of December 31, 2016 Commercial Paper 89.21% Repurchase Agreements 9.67% 8 to 30 days 26.47% 1 to 7 days 40.74% 181+ days 0.00% 31 to 90 days 29.72%Utility District 10.87% Other 7.30% School District 38.74%Health Care 1.58% County 10.28% Higher Education 2.77% City 28.46% Distribution of Participants by Type As of December 31, 2016 Portfolio by Type of Investment As of December 31, 2016 Portfolio by Maturity As of December 31, 2016 91 to 180 days 3.07% Agencies 1.12% Mny Mkt Fund Daily Allocation LOGIC Invested Market Value WAM WAM Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)* 12/1/2016 0.8125% 0.000022261 $4,680,597,813.25 1.000368 28 71 12/2/2016 0.8064% 0.000022092 $4,672,339,298.09 1.000344 28 73 12/3/2016 0.8064% 0.000022092 $4,672,339,298.09 1.000344 28 73 12/4/2016 0.8064% 0.000022092 $4,672,339,298.09 1.000344 28 73 12/5/2016 0.8397% 0.000023006 $4,688,751,437.77 1.000394 36 78 12/6/2016 0.8626% 0.000023634 $4,673,674,789.36 1.000411 37 80 12/7/2016 0.8670% 0.000023754 $4,679,886,787.66 1.000425 37 80 12/8/2016 0.8624% 0.000023627 $4,676,951,884.23 1.000427 34 79 12/9/2016 0.8460% 0.000023179 $4,745,346,019.70 1.000396 32 76 12/10/2016 0.8460% 0.000023179 $4,745,346,019.70 1.000396 32 76 12/11/2016 0.8460% 0.000023179 $4,745,346,019.70 1.000396 32 76 12/12/2016 0.8474% 0.000023217 $4,742,044,605.49 1.000395 33 76 12/13/2016 0.8603% 0.000023569 $4,594,698,723.12 1.000403 33 77 12/14/2016 0.8621% 0.000023618 $4,599,106,608.03 1.000393 32 77 12/15/2016 0.8869% 0.000024299 $4,774,092,623.91 1.000365 30 73 12/16/2016 0.8951% 0.000024522 $4,887,030,485.39 1.000298 32 72 12/17/2016 0.8951% 0.000024522 $4,887,030,485.39 1.000298 32 72 12/18/2016 0.8951% 0.000024522 $4,887,030,485.39 1.000298 32 72 12/19/2016 0.9090% 0.000024905 $5,058,225,869.80 1.000328 33 71 12/20/2016 0.9351% 0.000025620 $4,739,040,844.05 1.000352 34 75 12/21/2016 0.9043% 0.000024775 $5,084,117,911.04 1.000340 32 70 12/22/2016 0.9234% 0.000025299 $5,113,337,622.23 1.000320 32 70 12/23/2016 0.9209% 0.000025230 $5,168,570,074.70 1.000270 29 66 12/24/2016 0.9209% 0.000025230 $5,168,570,074.70 1.000270 29 66 12/25/2016 0.9209% 0.000025230 $5,168,570,074.70 1.000270 29 66 12/26/2016 0.9209% 0.000025230 $5,168,570,074.70 1.000270 29 66 12/27/2016 0.9222% 0.000025266 $5,159,061,030.09 1.000326 29 65 12/28/2016 0.9140% 0.000025040 $5,227,142,239.13 1.000327 28 66 12/29/2016 0.9145% 0.000025055 $5,259,017,107.87 1.000334 28 65 12/30/2016 0.8999% 0.000024654 $5,345,321,204.93 1.000291 26 61 12/31/2016 0.8999% 0.000024654 $5,345,321,204.93 1.000291 26 61 Average 0.8790% 0.000024082 $4,904,155,419.85 31 72 Da i l y R a t e s Daily Summary for December 2016 LOGIC versus 90-Day Treasury Bill This material is for information purposes only. This information does not represent an offer to buy or sell a security. The above rate information is obtained from sources that are believed to be reliable; however, its accuracy or completeness may be subject to change. The LOGIC management fee may be waived in full or in part at the discretion of the LOGIC co-administrators and the LOGIC rate for the period shown reﬂ ects waiver of fees. This table represents historical investment performance/return to the customer, net of fees, and is not an indication of future performance. An investment in the security is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the issuer seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the security. Information about these and other program details are in the fund’s Information Statement which should be read carefully before investing. The yield on the 90-Day Treasury Bill (“T-Bill Yield”) is shown for comparative purposes only. When comparing the investment returns of the LOGIC pool to the T-Bill Yield, you should know that the LOGIC pool consist of allocations of speciﬁ c diversiﬁ ed securities as detailed in the respective Information Statements. The T-Bill Yield is taken from Bloomberg Finance L.P. and represents the daily closing yield on the then current 90-day T-Bill. Da i l y R a t e s Da i l y S u m m a r y -0.01 0.08 0.17 0.26 0.35 0.44 0.53 0.62 0.71 0.80 0.89 0.98 90 Day T-BILL Rate LOGIC Rate Co n t a c t s For more information contact LOGIC Participant Services  1-800-895-6442  www.logic.org LO G I C B o a r d LOGIC Board Members Philip G. Roberson Arlington ISD Board President Fred L. Werner Municipal Finance Director Board Vice President Judd R. Sanderson North Texas Municipal Water District Board Treasurer / Investment Ofﬁ cer Sandra Newby Tarrant Regional Water District Board Member Greg Jordan City of Grapevine Board Member L O G I C P a r t i c i p a n t S e r v i c e s F i r s t S o u t h w e s t , A D i v i s i o n o f H i l l t o p S e c u r i t i e s 1 2 0 1 E l m S t r e e t , S u i t e 3 5 0 0 D a l l a s , T X 7 5 2 7 0 The Dallas–Fort Worth economy expanded at a vigorous pace in November, with employment growing during the month and continuing to outperform the state and the nation. Unemployment fell, and growth in the Dallas and Fort Worth business-cycle indexes accelerated. Home prices rose in the third quarter, and inventories remained tight. Summary � DFW employment expanded an annualized 4.0 percent in November due to strong job growth in both the Dallas and Fort Worth metro areas. DFW job gains outperformed those in Texas and the U.S. for the fifth straight month. DFW year-to-date job growth of 2.7 percent is more than a full percentage point faster than that of the state (1.6 percent) and the U.S. (1.5 percent). � DFW job growth has been broad based year to date, with all major sectors adding jobs. The construction and mining sector has continued to gain jobs at a rapid clip of 4.6 percent (annualized), likely due to an ongoing construction boom in the metroplex. Other large sectors such as professional and business services and education and health services have also seen solid employment growth, at 3.9 percent and 3.7 percent, respectively. � Dallas leads the major Texas metros in year-to- date employment growth at an annualized 3.2 percent. Continued healthy growth in the U.S. economy has been a tailwind for Dallas because its industry mix more closely mirrors that of the nation. Meanwhile, payrolls in Fort Worth have seen more modest growth of 1.5 percent this year, likely due to its higher dependence on the manufacturing and energy sectors relative to Dallas. �In November, the unemployment rate dipped to 4.1 percent in Dallas and 3.2 percent in Fort Worth. Both figures remain lower than the U.S. rate, which edged down to 4.6 percent. The unemployment rate is at a multiyear low in Fort Worth but is up 0.2 percentage points in Dallas compared with Novem- ber 2015 levels. FEDERAL RESERVE BANK OF DALLAS • DECEMBER 20, 2016 Month/month percent change, annualized Employment SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by the Dallas Fed. Employment Growth by Sector Employment Growth DFW Economic Indicators DALLASFED -2 -1 0 1 2 3 4 5 6 7 8 9 2011 2012 2013 2014 2015 Dallas–Fort Worth Texas NOTES: Data show seasonally adjusted, annualized percentage growth by supersector for December 2015–November 2016. Numbers in parentheses are shares of total Dallas–Fort Worth nonfarm employment and may not sum to 100 due to rounding. SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by the Dallas Fed. 1.3 5.1 4.6 0.1 2.3 2.6 1.5 3.7 3.9 2.4 2.9 2.7 Information (2.3%) Other services (3.5%) Construction & mining (5.9%) Manufacturing (7.4%) Financial activities (8.1%) Leisure & hospitality (10.3%) Government (11.9%) Education & health services (12.4%) Professional & business services (16.7%) Trade, transportation & utilities (21.4%) Private (88.1%) Total Unemployment Rate SOURCES: Census Bureau; seasonal adjustments by the Dallas Fed. Percent 3 4 5 6 7 8 9 10 11 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 U.S.Texas Dallas Fort Worth NOTE: Data may not match previously published numbers due to revisions. Questions can be addressed to Laila Assanie at laila.assanie@dal.frb.org. More Dallas Fed economic updates: www.dallasfed.org/research/update/ Months of inventory, seasonally adjusted SOURCES: Multiple Listing Service; seasonal adjustments by the Dallas Fed. Index, first quarter 1991 = 100* Housing *Quarterly, seasonally adjusted. SOURCE: Federal Housing Finance Agency. 100 120 140 160 180 200 220 240 260 280 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Dallas U.S. Fort Worth 0 2 4 6 8 10 12 '08 '09 '10 '11 '12 '13 '14 '15 '16 U.S.DallasFort WorthTexas �The DFW housing market remains tight, and home prices in the metro are rising faster than the state and national averages. Prices rose 2.1 percent in Dallas and 2.7 percent in Fort Worth in the third quarter, according to the Federal Housing Finance Agency purchase-only house price index. On a year- over-year basis, prices are up 9.9 percent in Dallas and 10.8 percent in Fort Worth—both higher than in Texas (7.8 percent) and the nation (6.1 percent). Price appreciation in DFW is also outpacing in- creases in Austin, San Antonio and Houston, which have seen year-over-year growth of 9.1, 9.0 and 2.9 percent, respectively. �Multiple Listing Service data also suggest strong price appreciation in the metroplex, with year-over- year median home prices up 8.9 percent in Dallas and 12.3 percent in Fort Worth. At $261,465, the real median sales price in Dallas is well above the state and national figures, while Fort Worth at $201,365 trails all three. �DFW home inventories remain tight at 2.2 months’ supply, well below the six months’ supply typically associated with a balanced market. Inven- tories have been around the two-month level since late 2014. The supply of homes priced $200,000 or under is even lower at around one month. �Single-family homebuilding continues to increase, buoyed by strong housing demand. DFW single- family permits ticked up 1.6 percent in October and are up 4.5 percent year to date compared with the same period last year. This growth in permits for new single-family home construction, coupled with strong gains in construction employment, suggests that the DFW residential real estate market will see continued growth in the near term. Index, January 2009 = 100* *Monthly, seasonally adjusted. SOURCE: Dallas Fed. � Overall economic growth was solid in Dallas and Fort Worth, according to the Dallas Fed’s metro business-cycle indexes. The Dallas index climbed an annualized 6.7 percent in November, faster than last month’s 5.9 percent pace, and the Fort Worth index grew at a rapid clip of 5.0 percent. Year over year, the Dallas index is up 5.6 percent, while the Fort Worth index is 3.2 percent higher as a result of continued healthy job creation and recent declines in unemployment. Business-Cycle Indexes 90 100 110 120 130 140 150 2009 2010 2011 2012 2013 2014 2015 2016 Dallas Fort Worth Home Prices Home Inventories