HomeMy WebLinkAboutAudit Committee-Agenda Packets-12/04/2018City 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, December 4, 2018
5:00 p.m.
City Manager’s Conference Room
Third Floor – City Hall
1.CALL TO ORDER
2. APPROVAL OF MINUTES
June 5, 2018
August 28, 2018
3.REGULAR AGENDA ITEMS
3a Quarterly Investment Report for the quarter ended September 30,
2018
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday,
November 30, 2018, by 5:00 p.m.
Christine Loven, 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
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, June 5, 2018
4:00 p.m.
City Manager’s Conference Room
Third Floor – City Hall
Chief Financial Officer Shereen Gendy called the Audit Committee to order on June
5, 2018, at 4:00 p.m.
ROLL CALL: Committee members present George Dodson, Kathy Wheat, Bobby
Lindamood
Absent: Susan Mathisen
Also Present: City Manager Jerry Ducay, Chief Financial Officer Shereen Gendy,
Assistant City Manager Mark Wood and City Secretary Christine Loven
2. APPROVAL OF MINUTES
May 1, 2018
Committee member Dodson made a motion to approve the May 1, 2018 meeting
minutes, and committee member Wheat seconded the motion. All approved by
acclamation.
3.REGULAR AGENDA ITEMS
3a Discussion and review of the City of Colleyville investment policy and
propose changes
CFO Gendy stated staff has proposed changes to the investment policy which are
in compliance with the Public Investment Act. She then reviewed and discussed
the theory and strategy, explaining the pools, and answered questions. There were
suggestions made for changes to pages 85, 92, 94, and 154.
Committee member Dodson made a motion to forward the proposed changes to
City Council for approval, and committee member Wheat seconded the motion. All
approved by acclamation.
4.ADJOURNMENT
The meeting was adjourned at 4:41 p.m.
PASSED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, THIS 4TH DAY OF
DECEMBER, 2018.
City of Colleyville Page 2
Audit Committee Minutes June 5, 2018
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
City of Colleyville
Audit Committee
MINUTES
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, August 28, 2018
4:00 p.m.
City Manager’s Conference Room
Third Floor – City Hall
Chief Financial Officer Shereen Gendy called the Audit Committee to order on
August 28, 2018, at 4:00 p.m.
ROLL CALL: Committee members present George Dodson, Kathy Wheat, Bobby
Lindamood, and Susan Mathisen
Also Present: Chief Financial Officer Shereen Gendy, City Manager Jerry Ducay,
Assistant City Managers Mark Wood and Adrienne Lothery, and City Secretary
Christine Loven
2. REPORTS
2a Quarterly Investment Report for the quarter ended June 30, 2018
CFO Gendy reviewed the investment report, noting the increase in earnings which
were due to the maturity of older securities and investing the funds in higher
yielding securities. There was discussion regarding maturity of funds and
diversification of the portfolio.
3.REGULAR AGENDA ITEMS
3a Meet with representatives(s) from the City's audit firm, Weaver and
Tidwell, to discuss the Fiscal Year September 30, 2018 audit
CFO Gendy introduced Jennifer Ripka, with the City’s audit firm Weaver and
Tidwell, who provided a presentation and discussed the transition and
requirements for the FY2018 audit and answered questions of the committee
members.
4.ADJOURNMENT
The meeting was adjourned at 5:34 p.m.
PASSED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, THIS 4TH DAY OF
DECEMBER, 2018.
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
City of Colleyville
City Council
Agenda Briefing
City Hall
100 Main Street
Colleyville, Texas 76034
www.colleyville.com
Agenda Number 3a Agenda Date 12/04/2018 Number
Type Presentation
Department City Manager
Title
Quarterly Investment Report for the quarter ended September 30, 2018
Strategic Plan
1.4 Communicate thoroughly and strategically
1.3 Assure convenient access to public information
2.4 Demonstrate stewardship of public resources
Explanation
Investment Summary for period ending September 30, 2018:
Cash & Cash Equivalents (Local Government Investment Pools) were $66,064,485. The
total funds held by the City equaled $85,467,744 and were allocated as follows:
Cash $
6,737,135
7.88%
Sweep 20,763,304 24.29%
LOGIC 439,754 0.52%
TexPOOL 25,101,329 29.37%
Texas CLASS 13,022,952 15.24%
TexSTAR 10 0%
Government Issues 15,583,011 18.23%
CDARS 3,076,248 3.60%
CD'S 744,000 0.87%
Investment Benchmark 2.04%
Bank Earned Income Credit 1.97%
Sweep 0.18%
LOGIC 2.19%
TexPOOL 1.87%
Texas CLASS 1.99%
TexSTAR 1.94%
Government Issues 1.49%
CDARS 0.63%
CD'S 2.53%
City Council Agenda Briefing 3a
City of Colleyville Page 2
Interest earnings for the quarter were $221,568 versus $207,864 for the prior quarter,
an increase of 7% over last quarter.
These percentages are within the guidelines of the City investment policy.
Attachments
1.Quarterly Investment Report - September 30 2018
QUARTERLY INVESTMENT REPORT
FOR QUARTER ENDING SEPTEMBER 30, 2018
THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT
AND ADOPTED INVESTMENT POLICY STRATEGY
Portfolio Investment Report
for the Quarter Ending September 30, 2018
CONSOLIDATED INVESTMENT REPORT
Current Last Quarter
As of As of
Cash and Investment Balances 9/30/2018 6/30/2018
Cash 6,737,135$ 6,822,449$
Sweep 20,763,304$ 34,513,549$
Commercial Paper Investment Pool 439,754$ 26,412,554$
Government Only Investment Pool 38,124,292$ -$
Investment Portfolio 15,583,011$ 16,582,311$
CDARS 3,076,248$ 3,065,355$
Certificates of Deposit 744,000$ 744,000$
Total Cash & Investments 85,467,744$ 88,140,218$
Investment Yields, Maturities, and Interest
Current Current
As of As of
9/30/2018 6/30/2018
Bank Earned Income Credit 1.97%1.79%
Bank Earnings Allowance 34,139$ 26,062$
13 Week Treasury Benchmark 2.04%1.84%
Commercial Paper Investment Pool Average Quarterly Yield 2.19%2.02%
Commercial Paper Investment Pool Quarter's Average Weighted Maturity 33 29
Government Only Investment Pool Average Quarterly Yield 1.93%
Government Only Investment Pool Quarter's Average Weighted Maturity 28
Average Weighted Yield: Agency 1.49%1.48%
Average Weighted Maturity in Days: Agency 319 406
Average Weighted Yield: CDARS 0.63%0.47%
Average Weighted Maturity in Days: CDARS 285 166
Average Weighted Yield: CD'S 2.53%2.53%
Average Weighted Maturity in Days: CD'S 581 644
Interest Earnings - Quarter 221,568$ 207,864$
Portfolio Investment Report
for the Quarter Ending September 30, 2018
CONSOLIDATED INVESTMENT REPORT
Cash
8%
Sweep
24%
Commercial Paper
Investment Pool
0%
Government Only Investment
Pool
45%
Investment Portfolio
18%
CDARS
4%
Certificates of Deposit
1%
CASH & INVESTMENT BALANCES
Portfolio Investment Report
for the Quarter Ending September 30, 2018
CONSOLIDATED INVESTMENT REPORT
Distribution by Maturity Number
1 to 90 days 1 1,000,580$ 6.42%999,873.00$
91 to 180 days 2 1,999,812$ 12.83%1,992,786.00$
181 to 365 days 3 2,500,000$ 16.04%2,476,562.00$
Over 365 days 9 10,082,619$ 64.71%9,989,436.19$
Total 15 15,583,011$ 100%15,458,657$
Distribution by Type of Investment Number
Federal Home Loan Bank (FHLB)4 $5,197,645 33%$5,151,155
Federal Farm Credit Bank (FFCB)8 $7,990,496 51%$7,939,048
Federal Home Loan Mortgage Corporation (FHLMC)3 $2,394,870 15%$2,368,454
Federal National Mortgage Association (FNMA)0 $0 0%$0
Total 15 15,583,011$ 100%15,458,657$
Outstanding Security Portfolio Purchase Price Percent
(Value)Market Value
Outstanding Security Portfolio Purchase Price Percent
(Value)Market Value
33%, Federal Home Loan Bank
(FHLB)
51%, Federal Farm Credit Bank
(FFCB)
15%, Federal Home Loan
Mortgage Corporation
(FHLMC)
0%, Federal National Mortgage Association (FNMA)
INVESTMENT SECURITY DISTRIBUTION BY TYPE
ALL FUNDS CASH & INVESTMENT REPORTS
CASH CP POOLS GOV. POOLS INVESTMENTS CDARS CD'S AS OF SEPT 30, 2018
Ran 11.16.18
001 GENERAL FUND 2,511,269.13$ -$ 2,544,136.93$ 3,794,835.42$ 2,053,344.40$ 744,000.00$ 11,647,585.88$
036 STRATEGIC INITIATIVE 23,945.09 - 500,016.56 - - - 523,961.65
004 DEBT SERVICE FUND 662,683.13 - 34,969.32 - - - 697,652.45
003 CAPITAL PROJECTS 8,620,989.47 279,200.86 4,007,060.72 2,289,215.54 509,612.62 - 15,706,079.21
012 PARK LAND DEDICATION 126,569.84 - - 1,325,973.26 - - 1,452,543.10
032 VEHICLE AND CAPITAL REPLACEMENT 977,071.68 - 84,536.86 364,300.00 - - 1,425,908.54
034 COLLEYVILLE TOMORROW 707,392.96 - 1,722,413.87 25,091.76 - - 2,454,898.59
035 PARKS TOMORROW 2,330.78 - 1,048,358.80 - - - 1,050,689.58
005 VOLUNTARY PARK FUND 362,814.98 - - 750,000.00 - - 1,112,814.98
007 DONATIONS FUND 58,081.92 - - - - - 58,081.92
011 VOLUNTARY LIBRARY FUND 98,859.05 - - 359,642.52 - - 458,501.57
015 POLICE ASSET FORFEITURE 23,292.29 - - - - - 23,292.29
016 GRANTS (ADVANCE PAYMENTS)(4,802.87) - - - - - (4,802.87)
018 TREE PRESERVATION 316,667.87 - - - - - 316,667.87
019 LIBRARY DONATION 137,002.45 - - - - - 137,002.45
020 RECREATIONAL EVENT 14,153.27 - - - - - 14,153.27
023 LEOSE 1,554.47 - - - - - 1,554.47
027 CRIME DISTRICT 377,225.07 - 785,088.37 - - - 1,162,313.44
028 KIDSVILLE MAINTENANCE 5,812.94 - - - - - 5,812.94
029 COURT TECHNOLOGY - - - - - - -
030 COURT SECURITY 45,275.84 - - - - - 45,275.84
033 PUBLIC ART 7,904.05 - - - - - 7,904.05
037 JUVENILE CASE MANAGER 13,147.18 - - - - - 13,147.18
038 HOTEL / MOTEL FUND 363,613.69 - - - - - 363,613.69
002 UTILITY FUND 2,388,323.10 - 2,727,366.78 2,704,115.74 513,290.59 - 8,333,096.21
039 UTILITY CAPITAL PROJECTS FUND 4,494,084.95 1,259.99 5,993,130.44 56,792.76 - - 10,545,268.14
017 DRAINAGE FEE (140,874.02) 131,317.16 1,394,043.24 200,000.00 - - 1,584,486.38
041 UTILITY CAPITAL PROJECTS FUND 750,000.00 - - - - - 750,000.00
006 SESQUICENTINIAL FUND 21,034.45 - - - - - 21,034.45
008 EMPLOYEE ACTIVITY 3,962.50 - - - - - 3,962.50
040 INSURANCE TRUST FUND (ADV PMNT) (610.97) - - - - - (610.97)
026 TIF FUND 1,575,548.56 0.00 17,283,170 2,213,044.19 - - 21,071,762.69
24,544,322.85 411,778.01$ 38,124,291.83$ 14,083,011.19$ 3,076,247.61$ 744,000.00$ 80,983,651.49$
024 CEDC 2,956,116.49 27,976.45 - 1,500,000.00 - - 4,484,092.94
27,500,439.34 439,754.46$ 38,124,291.83$ 15,583,011.19$ 3,076,247.61$ 744,000.00$ 85,467,744.43$
Cash and cash equivalents are just one aspect of the City’s overall financial status, and it is necessary to look at the complete financial statements/CAFR for a comprehensive assessment.
This is a management report prepared not in accordance with GASB
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
GOVERNMENTAL FUNDS
COLOR CODE
CITY OF COLLEYVILLE
ALL FUNDS CASH & INVESTMENT REPORT - TOTAL BY FUND
CASH & INVESTMENT
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
COLLEYVILLE ECON DEV CORP
GRAND TOTAL
Available Available for Approved Restricted AS OF SEPT 30, 2018
Unrestricted Restricted Purpose Projects Unavailable Ran 11.16.18
001 GENERAL FUND 11,530,125 32,548 - 84,913 11,647,586
036 STRATEGIC INITIATIVE 523,962 - - - 523,962
004 DEBT SERVICE FUND - 697,652 - - 697,652
003 CAPITAL PROJECTS 6,373,217 6,940,578 2,241,661 150,623 15,706,079
012 PARK LAND DEDICATION - 1,452,543 - - 1,452,543
032 VEHICLE AND CAPITAL REPLACEMENT - 1,425,909 - - 1,425,909
034 COLLEYVILLE TOMORROW 2,454,899 - - - 2,454,899
035 PARKS TOMORROW 1,050,690 - - - 1,050,690
005 VOLUNTARY PARK FUND - 1,112,815 - - 1,112,815
007 DONATIONS FUND - 58,082 - - 58,082
011 VOLUNTARY LIBRARY FUND - 458,502 - - 458,502
015 POLICE ASSET FORFEITURE 23,292 23,292
016 GRANTS - (4,803) - - (4,803)
018 TREE PRESERVATION - 316,668 - - 316,668
019 LIBRARY DONATION - 137,002 - - 137,002
020 RECREATIONAL EVENT - 14,153 - - 14,153
023 LEOSE - 1,554 - - 1,554
027 CRIME DISTRICT - 1,162,313 - - 1,162,313
028 KIDSVILLE MAINTENANCE - 5,813 - - 5,813
029 COURT TECHNOLOGY - - - - -
030 COURT SECURITY - 45,276 - - 45,276
033 PUBLIC ART - 7,904 - - 7,904
037 JUVENILE CASE MANAGER - 13,147 - - 13,147
038 HOTEL / MOTEL FUND - 363,614 - - 363,614
002 UTILITY FUND 7,851,426 - - 481,670 8,333,096
039 UTILITY CAPITAL PROJECTS FUND 4,517,179 4,339,904 1,631,411 56,775 10,545,268
017 DRAINAGE FEE 1,453,169 - - 131,317 1,584,486
041 DRAINAGE CAPITAL PROJECTS FUND 750,000 - - - 750,000
006 SESQUICENTINIAL FUND - 21,034 - - 21,034
008 EMPLOYEE ACTIVITY - - - 3,963 3,963
040 INSURANCE TRUST FUND (611) (611)
026 TIF FUND 20,274,720 - 797,043 - 21,071,763
56,779,385 18,625,502 4,670,115 908,650 80,983,651
024 CEDC 4,484,093$ -$ -$ -$ 4,484,093$
61,263,478 18,625,502 4,670,115 908,650 85,467,744
Cash and cash equivalents are just one aspect of the City’s overall financial status, and it is necessary to look at the complete financial statements/CAFR for a comprehensive assessment.
This is a management report prepared not in accordance with GASB
FIDUCIARY FUNDS
CITY OF COLLEYVILLE
ALL FUNDS CASH & INVESTMENT REPORT - RESTRICTIONS BY FUND
CASH & INVESTMENTS
GOVERNMENTAL FUNDS
ENTERPRISE FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
COLLEYVILLE ECON DEV CORP
GRAND TOTAL
COLOR CODE
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
AS OF SEPT 30, 2018 AS OF SEPT 30, 2017
Ran 10.30.18
001 GENERAL FUND 11,647,585.88$ 9,090,685.99$ 2,556,899.89$
036 STRATEGIC INITIATIVE 523,961.65 539,656.63 (15,694.98)
004 DEBT SERVICE FUND 697,652.45 691,401.06 6,251.39
003 CAPITAL PROJECTS 15,706,079.21 16,755,994.20$ (1,049,914.99)$
012 PARK LAND DEDICATION 1,452,543.10 1,426,546.34 25,996.76
032 VEHICLE AND CAPITAL REPLACEMENT 1,425,908.54 1,100,110.58 325,797.96
034 COLLEYVILLE TOMORROW 2,454,898.59 2,359,524.87 95,373.72
035 PARKS TOMORROW 1,050,689.58 1,033,636.72 17,052.86
005 VOLUNTARY PARK FUND 1,112,814.98 876,248.15 236,566.83
007 DONATIONS FUND 58,081.92 61,586.54 (3,504.62)
011 VOLUNTARY LIBRARY FUND 458,501.57 430,417.25 28,084.32
015 POLICE ASSET FORFEITURE 23,292.29 9,076.88 14,215.41
016 GRANTS (ADVANCE PAYMENTS)(4,802.87) 8,132.93 (12,935.80)
018 TREE PRESERVATION 316,667.87 311,696.31 4,971.56
019 LIBRARY DONATION 137,002.45 138,572.50 (1,570.05)
020 RECREATIONAL EVENT 14,153.27 10,700.67 3,452.60
023 LEOSE 1,554.47 3,396.95 (1,842.48)
027 CRIME DISTRICT 1,162,313.44 1,274,682.91 (112,369.47)
028 KIDSVILLE MAINTENANCE 5,812.94 8,408.03 (2,595.09)
029 COURT TECHNOLOGY - 75,178.30 (75,178.30)
030 COURT SECURITY 45,275.84 60,113.42 (14,837.58)
033 PUBLIC ART 7,904.05 7,904.05 -
037 JUVENILE CASE MANAGER 13,147.18 24,537.58 (11,390.40)
038 HOTEL / MOTEL FUND 363,613.69 88,896.39 274,717.30
002 UTILITY FUND 8,333,096.21 5,890,145.58 2,442,950.63
039 UTILITY CAPITAL PROJECTS FUND 10,545,268.14 9,777,358.19 767,909.95
017 DRAINAGE FEE 1,584,486.38 2,283,580.19 (699,093.81)
041 DRAINAGE CAPITAL PROJECTS FUND 750,000.00 - 750,000.00
006 SESQUICENTINIAL FUND 21,034.45 20,545.56 488.89
008 EMPLOYEE ACTIVITY 3,962.50 4,700.16 (737.66)
040 INSURANCE TRUST FUND (ADV PMNT)(610.97) - (610.97)
026 TIF FUND 21,071,762.69 18,972,344.32$ 2,099,418.37$
80,983,651.49$ 73,335,779.25$ 7,647,872.24$
024 CEDC 4,484,092.94 3,904,845.12 579,247.82
025 CEDC - CAPITAL - 65,793.93 (65,793.93)
85,467,744.43$ 77,306,418.30$ 8,161,326.13$
Cash and cash equivalents are just one aspect of the City’s overall financial status, and it is necessary to look at the complete financial statements/CAFR for a comprehensive assessment.
This is a management report prepared not in accordance with GASB
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
CITY OF COLLEYVILLE
GRAND TOTAL
COLOR CODE
CASH & INVESTMENT CASH & INVESTMENT CHANGE
GOVERNMENTAL FUNDS
ALL FUNDS CASH & INVESTMENT REPORT - TOTAL BY FUND
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
COLLEYVILLE ECON DEV CORP
REVENUE SOURCE PURPOSE/RESTRICTION
001 GENERAL FUND M&O portion of tax rate, sales tax, charges for service, etc.General government purposes
036 STRATEGIC INITIATIVES Transfers from the General Fund Programs/projects linked to the strategic plan; primarily used on eco. dev. incentives
004 DEBT SERVICE Debt (I&S) portion of the tax rate Payments on debt issued
003 CAPITAL PROJECTS Transfers from the General Fund, street impact fees, escrows Capital projects; some funding sources have restricted uses
012 PARK LAND DEDICATION Fees on new residential & commercial development Acquisition of land for new park sites or improvements/expansions of existing parks (no M&O)
032 VEHICLE AND CAPITAL REPLACEMENT Transfers from the General Fund Committed to server, equipment, and vehicle replacements
034 COLLEYVILLE TOMORROW Gas leases on City property Capital purchases/at Council discretion
035 PARKS TOMORROW Gas leases on City park property Parks capital projects
005 VOLUNTARY PARK FUND Donations through utility bills New or existing park capital costs (no M&O)
007 DONATIONS FUND Donations Only restricted if specified by donor
011 VOLUNTARY LIBRARY FUND Donations through utility bills Library activities- primarily purchase of books and materials (no M&O)
015 POLICE ASSET FORFEITURE Seizures Police operations as restricted by law
016 TDPA GRANT (EECBG GRANT)U.S. Dept. of Energy Energy efficiency projects
018 TREE PRESERVATION Tree mitigation fees Tree replanting on city-owned property
019 LIBRARY DONATION Donations Library needs or as specified by donor
020 RECREATIONAL EVENT Event revenue (like sale of tables)Special events expenses
023 LEOSE State of Texas Police training
027 CRIME DISTRICT (CCCPD)0.5 cent sales tax Public safety and crime control activities
028 KIDSVILLE MAINTENANCE Remaining donations Kidsville maintenance
029 COURT TECHNOLOGY Municipal court technology fee Court technology repairs, replacements, and upgrades
030 COURT SECURITY Municipal court building security fee Security-related expenses for the court (Bailiff)
033 PUBLIC ART 2008-9 Transfers from General, Utility, Drainage, CEDC Funds Public Art
037 JUVENILE CASE MANAGER Juvenile case manager fee Staff who handle juvenile defendants and their training
038 HOTEL/MOTEL FUND Hotel/Motel tax Attract "heads in beds"; specific uses outlined in state law
002 UTILITY OPERATING FUND Water and wastewater base rates and volumetric rates Utility operations and payments to TRA
017 DRAINAGE FEE FUND Monthly drainage fee Operations and capital projects related to drainage maintenance and improvement
039 UTILITY CAPITAL PROJECTS FUND Transfers from Utility Operating Fund, impact fees, CIP base rate Utility capital projects; water and wastewater impact fees have restricted uses
041 DRAINAGE- CAPITAL PROJECTS FUND Transfers from Drainage Operating Fund Drainage capital projects
006 SESQUICENTINIAL FUND Currently, sale of the Colleyville History book Created for fund raising for festivities related to 150th anniversary of Texas’ independence from Mexico (1986)
008 EMPLOYEE ACTIVITY Employee contributions Employee luncheons and other employee activities; governed by by-laws
040 INSURANCE TRUST FUND Payroll deductions and city's contributions Pass through trust fund used to account for employee insurance costs. Created cost savings for the city.
026 TIF FUND Incremental A/V revenue in the TIF District Projects in the Project Plan approved by all TIF partners
024 CEDC 0.5 cent sales tax For Library, Parks, and Colleyville Center; max. 10% on promotional expenses and special events
025 CEDC - CAPITAL Bond proceeds Bond projects: Library, City Park, McPherson Park, Colleyville Center capital projects
COLOR CODE
DEBT SERVICE FUNDS
CAPITAL PROJECT FUNDS
SPECIAL REVENUE FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COLLEYVILLE ECON DEV CORP
CITY FUNDS - BACKGROUND
GOVERNMENTAL FUNDS
ENTERPRISE FUNDS
FIDUCIARY FUNDS
COMPONENT UNIT
LISTING OF INVESTMENTS
BY TYPE
FUND ALLOCATION AMOUNT PURCHASE
DATE
MATURITY
DATE
INTEREST
RATE
INTEREST
EARNED
DURING
QUARTER
UTILITY FUND*$513,291 7/27/2017 7/25/2019 0.40%$518
GENERAL FUND $510,048 9/22/2016 0.50%$643
CAPITAL PROJECTS*$509,613 9/21/2017 9/19/2019 0.58%$745
PURCHASED DURING THIS QUARTER
GENERAL FUND $1,543,297 9/19/2018 9/19/2019 2.08%$967
OUTSTANDING CDARS AT THE END OF THE QUARTER $3,076,248 $2,872
MATURED DURING THIS QUARTER
GENERAL FUND $1,534,117 9/21/2017 9/20/2018 0.60%$2,062
CDARS MATURED DURING THE QUARTER $1,534,117 $2,062
GRAND TOTAL 4,610,365 4,934
*Interest added to principal in December 2017 for reinvestment
CDARS CERTIFICATES OF DEPOSIT
FUND ALLOCATION AMOUNT PURCHASE
DATE
MATURITY/
SOLD
DATE
Market
Value
INTEREST
RATE
INTEREST
EARNED
DURING
QUARTER
GENERAL FUND - CITIBANK $248,000 3/29/2018 3/30/2020 247,227.48 2.50%$1,563
GENERAL FUND - GOLDMAN SACHS BANK $248,000 4/11/2018 4/13/2020 247,338.83 2.55%$1,594
PURCHASED DURING THIS QUARTER
GENERAL FUND - HOPE STANLEY BANK $248,000 9/14/2018 3/16/2020 247,473.74 2.55%$277
OUTSTANDING CD'S AT THE END OF THE QUARTER $744,000 $3,434
MATURED/SOLD DURING THIS QUARTER
GENERAL FUND - MORGAN STANLEY BANK $248,000 3/29/2018 8/29/2018 2.55%$1,040
CD'S MATURED DURING THE QUARTER 248,000 1,040
GRAND TOTAL 992,000 4,474
CD'S - CERTIFICATES OF DEPOSIT
INTEREST
CUSIP SECURITY PURCHASE MATURITY PURCHASE PAR MARKET LESS PLUS MARKET YIELD ON INTEREST TO MATURITY
DATE DATE PRICE VALUE VALUE MATURITY PERIOD VALUE INVESTMENT
6/30/2018 PROCEEDS PURCHASES 9/30/2018
3133EFX69 FFCB NOTE 10/17/2016 10/5/2018 $1,000,580 $1,000,000 $997,102 $999,873 0.930%$2,344 $18,294
3133EG5Q4 FFCB NOTE 2/1/2017 2/1/2019 $1,000,000 $1,000,000 $994,737 $996,422 1.300%$3,277 $26,000
3133EHHN6 FFCB NOTE 5/3/2017 5/2/2019 $1,000,000 $1,000,000 $992,031 $992,031 1.350%$3,403 $26,963
3130AAS41 FHLB NOTE 3/24/2017 2/8/2019 $999,812 $1,000,000 $994,232 $996,364 1.280%$3,226 $24,057
3133EHP98 FFCB NOTE 11/6/2017 11/6/2019 $1,000,000 $1,000,000 $988,254 $988,799 1.600%$4,033 $32,000
3137EAEH8 FHLMC NOTE 7/31/2017 8/15/2019 $500,000 $500,000 $494,145 $494,788 1.475%$1,859 $15,053
313380FB8 FHLB NOTE 8/29/2017 9/13/2019 $1,000,000 $1,000,000 $988,026 $988,346 1.375%$3,466 $28,065
3137EADM8 FHLMC NOTE 9/14/2017 10/2/2019 $998,788 $1,000,000 $907,435 $908,664 1.250%$3,151 $25,616
3137EADM8 FHLMC NOTE 10/13/2017 10/2/2019 $896,082 $900,000 $963,696 $965,002 1.475%$3,346 $26,150
3130ACLS1 FHLB NOTE 10/26/2017 10/11/2019 $2,200,000 $2,200,000 $2,175,149 $2,174,808 1.550%$8,594 $66,794
3133EHV75 FFCB NOTE 12/8/2017 11/21/2019 $749,711 $750,000 $742,176 $742,239 1.730%$3,270 $25,346
3133EGJ30 FFCB NOTE 12/29/2017 11/18/2019 $1,238,775 $1,255,000 $1,255,000 $1,233,386 1.100%$3,480 $26,059
3133EJCN7 FFCB NOTE 2/14/2018 2/14/2020 $1,000,000 $1,000,000 $992,624 $990,933 2.070%$5,218 $41,400
3130ADN32 FHLB NOTE 3/7/2018 2/11/2020 $997,834 $1,000,000 $993,892 $991,637 2.240%$5,646 $43,327
3133EJHL6 FFCB NOTE 4/9/2018 3/27/2020 $1,001,430 $1,000,000 $996,916 $993,968 2.375%$5,986 $46,719
PURCHASED DURING THIS QUARTER
$0 $0
OUTSTANDING SECURITIES AT THE END OF THE QUARTER 15,583,011 15,605,000 15,475,415 - - 15,457,260 60,298 471,844
MATURED DURING THIS QUARTER
3133EGML6 FFCB NOTE 7/18/2016 7/18/2018 $999,300 $1,000,000 $996,722 $999,503 0.785%$387 $15,700
SECURITIES MATURED DURING THE QUARTER 999,300 1,000,000 996,722 - 999,503 387 15,700
GRAND TOTAL 16,582,311 16,605,000 16,472,137 - - 16,456,763 60,686 487,544
CITY OF COLLEYVILLE INVESTMENT SECURITIES HELD JUNE 30 - SEPTEMBER 30, 2018
DESCRIPTION BALANCE
UTILITY FUND - CAPITAL PROJECTS
LOGIC-RES CASH-UTILITY LINE RE $1,260
CAPITAL PROJECTS FUND
LOGIC POOL-ROADS SA I CASH $23,273
LOGIC-CAPITAL PROJ/STREET RESU $255,928
DRAINAGE FUND
LOGIC POOL- OPERATING CASH $0
LOGIC- I&S FUND/DRAINAGE $131,317
LOGIC-2001 DRAINAGE BONDS $0
Subtotal - LOGIC balances excluding CEDC $411,778
CEDC Logic Balance
LOGIC POOL- OPERATING CASH $27,976
Total LOGIC Balance $439,754
INTEREST EARNED $27,200
LOCAL GOVERNMENT INVESTMENT COOPERATIVE / "LOGIC"
ACCOUNT ALLOCATION AT SEPTEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXPOOL - OPERATING CASH $540,592
UTILITY FUND
TEXPOOL - OPERATING CASH $2,727,367
UTILITY FUND - CAPITAL PROJECTS
TEXPOOL - WW IMPACT FEES $682,881
TEXPOOL - WATER IMPACT FEE $2,304,954
DEBT SERVICE FUND
TEXPOOL - OPERATING CASH $34,969
DRAINAGE FUND
TEXPOOL - OPERATING CASH $1,394,043
TIF FUND
TEXPOOL - OPERATING CASH $13,276,109
CCCPD FUND
TEXPOOL - OPERATING CASH $785,088
CAPITAL EQUIPMENT REPLACEMENT FUND
TEXPOOL - OPERATING CASH $84,537
COLLEYVILLE TOMORROW FUND
TEXPOOL - OPERATING CASH $1,722,414
PARKS TOMORROW FUND
TEXPOOL - OPERATING CASH $1,048,359
STRATEGIC INITIATIVES FUND
TEXPOOL - OPERATING CASH $500,017
Total TexPool Balance $25,101,329
INTEREST EARNED $101,327
TEXPOOL
ACCOUNT ALLOCATION AT SEPTEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXAS CLASS $2,003,535
CAPITAL PROJECTS FUND
TEXAS CLASS $4,007,061
UTILITY FUND - CAPITAL PROJECTS
TEXAS CLASS $3,005,296
TIF FUND
TEXAS CLASS $4,007,061
Total Texas CLASS Balance $13,022,952
INTEREST EARNED $22,947
TEXAS CLASS
ACCOUNT ALLOCATION AT SEPTEMBER 2018
DESCRIPTION BALANCE
GENERAL FUND
TEXSTAR - OPERATING CASH $10
Total TexSTAR Balance $10
INTEREST EARNED $0
ACCOUNT ALLOCATION AT SEPTEMBER 2018
TEXSTAR
Texas CLASS Portfolio Characteristics
The following information is provided in accordance with Texas
State Statute 2256.0016.
As of September 30, 2018:
Participant Breakdown
by Balance
Participant Breakdown
by Entity Type
Performance vs.
Benchmark
S&P AAA/AA GIP*
(Average Monthly Yields)
Texas CLASS
Portfolio Breakdown
Texas CLASS
Government
Portfolio Breakdown
Weighted Average
Maturity
(In Days)
September 2018 Portfolio Characteristics -Texas CLASS
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Texas CLASS Prior Month Comparison
Jul-18
2.23%
$7,196,963,396
$7,195,111,541
$7,195,500,320
$7,193,648,465
1.00
54
73
Aug-18
2.24%
$6,620,351,264
$6,619,956,122
$6,619,018,421
$6,618,623,279
1.00
47
70
September 2018 Portfolio Characteristics -Texas CLASS
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Sep-18
2.26%
$6,571,078,769
$6,571,228,312
$6,619,224,519
$6,619,374,062
1.00
52
78
**Average monthly yield ***As of the end of the last day of the month
September 2018 Portfolio Characteristics -Texas CLASS
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Texas CLASS Government Prior Month Comparison
Jul-18
1.98%
$197,364,508
$197,371,580
$197,272,033
$197,264,961
1.00
40
71
Aug-18
1.97%
$237,328,905
$237,361,153
$237,246,374
$237,214,126
1.00
39
74
September 2018 Portfolio Characteristics -Texas CLASS
Month End
Average Yield**
Month Ending Assets
Share Balance
Market Value
Amortized Cost
NAV
WAM (Reset)***
WAM (Final)***
Sep-18
2.01%
$380,527,493
$380,571,294
$380,284,992
$380,328,792
1.00
22
55
**Average monthly yield ***As of the end of the last day of the month
September 2018 Portfolio Characteristics -Texas CLASS
Fund Highlights as of September 30, 2018
(Unaudited)
For the month of September 2018, the Program Administrator accrued fees of
$533,467.04 and had average shares outstanding of $6,545,017,426.27 for Texas
CLASS. For Texas CLASS Government, the Program Administrator accrued fees of
$0.00 and had average shares outstanding of $314,862,664.89. The fees for both
Texas CLASS and Texas CLASS Government are accrued on a daily basis by
multiplying the investment property value by the applicable fee rate and divided by
365 or 366 days in the event of a leap year. The investment property value shall be
based on the current day’s shares outstanding. For weekend days and holidays, the
shares outstanding for the previous business day will be utilized for the calculation of
fees. The applicable fee rate is located in Exhibit F of the Seventh Amended and
Restated Trust Agreement. The Program Administrator reserves the right to abate
fees listed in the Seventh Amended and Restated Trust Agreement. The monthly fee
is the sum of all daily fee accruals for the month of September. The fees are paid
monthly upon notification to the custodian bank. As of September 30, 2018, the fee for
Texas CLASS was 10 basis points and the fee for Texas CLASS Government was 0.0
basis points.
• Both funds are rated ‘AAAm’ by S&P Global Ratings.
• Net Asset Value for both funds from September 1 to September 30, 2018 is
equal to $1.00.
• The final maturity dates of all securities were less than one year.
• The custodian bank for Texas CLASS is Wells Fargo Bank, N.A.
• Total number of Participants is 689.
• There are currently no investments that have a stated maturity greater than one
year.
• The portfolio managers for Texas CLASS are Randy Palomba, CFA and Neil
Waud, CFA.
• All sources of payment are the underlying assets of the local government
investment pool at market value.
September 2018 Portfolio Characteristics -Texas CLASS
• The Seventh Amended and Restated Trust Agreement was adopted by the
Board of Trustees on August 5, 2016. You can access your copy of the Seventh
Amended and Restated Trust Agreement by clicking here
(https://texasclass.com/wp-content/uploads/2017/06/2016-08-05-Seventh-
Amended-and-Restated-Trust-Agreement.pdf).
September 2018 Portfolio Characteristics -Texas CLASS
Data unaudited. Charts may not equal 100% due to rounding. Performance results are shown net of all fees and expenses and
reflect the reinvestment of dividends and other earnings. Many factors affect performance including changes in market
conditions and interest rates and in response to other economic, political, or financial developments. Investment involves risk
including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be
achieved. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions
may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making
any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment
strategy, function, or process. Any financial and/or investment decision should be made only after considerable research,
consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an
indication of future performance. Any financial and/or investment decision may incur losses. A ‘AAAm’ rating by S&P Global
Ratings is obtained after S&P evaluates a number of factors including credit quality, market price exposure, and management.
Ratings are subject to change and do not remove credit risk.
*The benchmark, the S&P US AAA & AA Rated GIP All 30 Day Net Yield (LGIP30D) is a performance indicator of rated GIPs that
maintain a stable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The
S&P benchmark utilized in this comparison is a composite of all rated stable net asset value pools. GIPs in the index include
only those rated based on S&P’s money market criteria. Pools rated ‘AAAm’ provide excellent safety and a superior capacity to
maintain principal value while those rated ‘AAm’ offer very good safety and a strong capacity to maintain principal value
(Source: S&P Global Ratings’ website). The comparison between this index and the portfolio may differ in holdings, duration,
fees, and percentage composition of each holding. Such differences may account for variances in yield.
The benchmark, the S&P AAA & AA Rated GIP Govt 30 Day Net Yield (LGIPG30N) is a performance indicator of rated GIPs that
maintain a stable net asset value of $1.00 per share and is an unmanaged market index representative of the LGIP universe. The
S&P benchmark utilized in this comparison is comprised of pools that invest in U.S. Government securities, U.S. Treasury
securities, Repurchase agreements collateralized by U.S. government and treasury securities or any combination of the above.
GIPs in the index include only those rated based on S&P’s money market criteria. Pools rated ‘AAAm’ provide excellent safety
and a superior capacity to maintain principal value while those rated ‘AAm’ offer very good safety and a strong capacity to
maintain principal value (Source: S&P Global Ratings’ website). The comparison between this index and the portfolio may differ
in holdings, duration, fees, and percentage composition of each holding. Such differences may account for variances in yield.
NewsPerformanceNew Participants
We would like to welcome the following entities who
joined the LOGIC program in September:
Harlandale ISD
City of Krugerville
Holiday Reminder
In observance of Columbus Day, LOGIC will be closed on Monday, October 8, 2018. All ACH transactions
initiated on Friday, October 5th, will settle on Tuesday,
October 9th. Please plan accordingly for your
liquidity needs.
Conferences
LOGIC Representatives look forward to visiting with those
of you attending these upcoming events:
Texas Municipal League Conference Oct 10-12,
Fort Worth
GFOAT Fall Conference Oct 24-26, Galveston
LOGIC Newsletter
September 2018
Economic Commentary The Federal Reserve (Fed) raised short-term
interest rates for a third time this year and signaled
it will progress with plans to gradually tighten
policy even as central bankers face White House
pressure for low borrowing costs and concerns
over the trade war with China. As anticipated, the
Fed boosted the federal funds rate target range by
25bps to 2.00%-2.25% at its September Federal
Open Market Committee (FOMC) meeting. The
FOMC statement maintained existing language
refl ecting the solid economic backdrop in the U.S.,
roughly balanced risks to the outlook and the
appropriateness of further gradual rate hikes. The
most interesting change was the reference to the
stance of monetary policy, which was previously
described as remaining accommodative, but has
been subsequently removed. This change further
distances the Fed from the extraordinarily easy
policy and explicit forward guidance used at the
zero lower bound. The median interest rate forecast
“dot plot” was largely unchanged, telegraphing one
more rate hike in 2018, three in 2019 and one in
2020. The description of the economy was upbeat
and growth projections were modestly upgraded.
Both the infl ation and unemployment forecasts were
mostly unchanged from the June meeting.
Our base case scenario remains above trend
growth although escalating trade battles could
depress business confi dence and tighten fi nancial
conditions. The probability of recession is still low.
Fiscal stimulus in the U.S., a well-capitalized global
banking system, strong U.S. consumer balance
sheets and central banks that are overly cautious in
restoring normality to the system are on the growing
laundry list of reasons not to expect a recession any
time soon. While the U.S. yield curve has fl attened,
which has historically been a reasonable indicator
of approaching recession, we believe the monetary
distortions present in this cycle are a meaningful
difference accentuating curve fl attening. We will see
how the next couple quarters play out for the curve
as quantitative easing (QE) gives way to quantitative
tightening (QT) and the tax reform incentive for U.S.
plans to contribute to their pension funds ends.
This is the quarter we have all been waiting for:
QE becomes QT, U.S. fi scal stimulus accelerates,
Treasury supply mushrooms, Brexit is a reality, and
trade wars loom. There will be increased volatility.
There will be markets that become overbought or
oversold and the opportunity to take advantage
of these shifts in investor sentiment as they arise.
This information is an excerpt from an economic report dated September 2018 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 todetermine 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 nextreadjustment of the interest rate.
(2)This weighted average maturity calculation uses the fi nal maturity of anyfl oating rate instruments held in the portfolio to calculate the weightedaverage maturity for the pool.
Rates refl ect historical information and are not an indication of future performance.
As of September 30, 2018
Current Invested Balance $6,222,015,405.64
Weighted Average Maturity (1)* 42 Days
Weighted Average Maturity (2)* 83 Days
Net Asset Value 1.000013
Total Number of Participants 576
Management Fee on Invested Balance 0.0975%
Interest Distributed $12,026,939.29
Management Fee Collected $507,991.89
% of Portfolio Invested Beyond 1 Year 0.00%
Standard & Poor’s Current Rating AAAm
September Averages:
Average Invested Balance $6,338,723,080.94
Average Monthly Yield, on a simple basis 2.2112%
Average Weighted Average Maturity (1)* 34 Days
Average Weighted Average Maturity (2)* 69 Days
Distribution of
Participants by Type
As of September31, 2011
Portfolio by
Maturity
As of September31, 2011
Information at a Glance HistoryHistorical Program Information
Average Book Market Net Number of
Month Rate Value Value Asset Value WAM (1)* WAM (2)* Participants
Sep 18 2.2112% $6,222,015,405.64 $6,222,101,273.25 1.000013 34 69 576
Aug 18 2.1843% 6,457,668,295.78 6,458,782,262.06 1.000073 34 66 574
Jul 18 2.1750% 6,693,358,601.72 6,694,255,228.51 1.000133 30 59 573
Jun 18 2.1078% 6,880,746,236.77 6,881,359,093.55 1.000058 28 64 571
May 18 2.0273% 6,972,924,126.20 6,973,895,573.35 1.000139 30 66 568
Apr 18 1.9293% 6,434,872,331.82 6,434,646,379.96 0.999964 28 66 565
Mar 18 1.7228% 6,902,175,938.22 6,900,336,026.44 0.999705 28 71 563
Feb 18 1.5898% 7,170,298,263.14 7,170,001,932.73 0.999958 29 78 563
Jan 18 1.5224% 7,365,857,458.60 7,365,850,519.17 0.999999 29 80 561
Dec 17 1.3784% 6,465,455,192.00 6,464,452,719.35 0.999820 29 76 559
Nov 17 1.2913% 6,037,285,391.70 6,037,616,463.25 1.000054 35 75 557
Oct 17 1.2845% 6,047,571,709.48 6,047,976,206.51 1.000066 42 75 556 Assets Book Value Market Value
Uninvested Balance $ 991,372.29 $ 991,372.29
Accrual of Interest Income 3,117,924.75 3,117,924.75
Interest and Management Fees Payable (12,151,412.24) (12,151,412.24)
Payable for Investment Purchased (172,718,190.82) (172,718,190.82)
Receivable for Investment Sold 0.00 0.00
Repurchase Agreements 589,558,999.89 589,558,999.89
Commercial Paper 5,813,216,711.77 5,813,302,579.38
Government Securities 0.00 0.00
Total $ 6,222,015,405.64 $ 6,222,101,273.25
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 September 30, 2018
Repurchase
Agreements
9.21%
8 to 30 days
31.43%
1 to 7 days
30.87%31 to 90 days
21.12%
Utility District
15.80%
Other
6.94%
School District
36.11%
Health Care
1.56%
County
10.07%
Higher
Education
2.78%
City
26.74%
Distribution of
Participants by Type
As of September 30, 2018
Portfolio by
Type of Investment
As of September 30, 2018
Portfolio by
Maturity
As of September 30, 2018
91 to 180 days
11.31%
Commercial Paper
90.79%
181+ days
5.27%
Mny Mkt Fund Daily Allocation LOGIC Invested Market Value WAM WAM Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)*
9/1/2018 2.1957% 0.000060155 $6,457,668,295.78 1.000073 33 64
9/2/2018 2.1957% 0.000060155 $6,457,668,295.78 1.000073 33 64
9/3/2018 2.1957% 0.000060155 $6,457,668,295.78 1.000073 33 64
9/4/2018 2.1938% 0.000060103 $6,440,816,436.84 1.000171 34 66
9/5/2018 2.1960% 0.000060165 $6,421,611,911.15 1.000170 35 65
9/6/2018 2.1962% 0.000060169 $6,407,271,025.51 1.000168 34 65
9/7/2018 2.1860% 0.000059890 $6,445,597,928.98 1.000095 32 63
9/8/2018 2.1860% 0.000059890 $6,445,597,928.98 1.000095 32 63
9/9/2018 2.1860% 0.000059890 $6,445,597,928.98 1.000095 32 63
9/10/2018 2.1872% 0.000059922 $6,416,073,390.13 1.000157 34 66
9/11/2018 2.1799% 0.000059722 $6,414,755,593.61 1.000157 31 65
9/12/2018 2.1878% 0.000059941 $6,405,600,670.79 1.000144 33 64
9/13/2018 2.1960% 0.000060165 $6,343,659,207.79 1.000164 32 69
9/14/2018 2.1940% 0.000060110 $6,280,649,970.28 1.000101 31 67
9/15/2018 2.1940% 0.000060110 $6,280,649,970.28 1.000101 31 67
9/16/2018 2.1940% 0.000060110 $6,280,649,970.28 1.000101 31 67
9/17/2018 2.2104% 0.000060559 $6,303,208,227.59 1.000156 33 70
9/18/2018 2.2161% 0.000060715 $6,304,093,181.94 1.000146 34 72
9/19/2018 2.2182% 0.000060772 $6,267,226,586.84 1.000143 33 71
9/20/2018 2.2170% 0.000060739 $6,253,749,225.70 1.000149 34 73
9/21/2018 2.2230% 0.000060905 $6,247,094,358.70 1.000054 32 69
9/22/2018 2.2230% 0.000060905 $6,247,094,358.70 1.000054 32 69
9/23/2018 2.2230% 0.000060905 $6,247,094,358.70 1.000054 32 69
9/24/2018 2.2196% 0.000060811 $6,229,768,376.17 1.000119 33 70
9/25/2018 2.2092% 0.000060527 $6,337,384,555.49 1.000109 31 70
9/26/2018 2.2082% 0.000060498 $6,339,166,097.74 1.000104 34 75
9/27/2018 2.2570% 0.000061835 $6,318,230,062.88 1.000095 37 78
9/28/2018 2.2829% 0.000062545 $6,222,015,405.64 1.000013 42 83
9/29/2018 2.2829% 0.000062545 $6,222,015,405.64 1.000013 42 83
9/30/2018 2.2829% 0.000062545 $6,222,015,405.64 1.000013 42 83
Average 2.2112% 0.000060582 $6,338,723,080.94 34 69 Daily RatesDaily Summary for September 2018
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. The LOGIC yield is calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940 as promulgated from time to time by the federal Securities and Exchange Commission.Daily RatesDaily Summary0.00
0.15
0.30
0.45
0.60
0.75
0.90
1.05
1.20
1.35
1.50
1.65
1.80
1.95
2.10
2.25
2.40
90 Day T-BILL Rate LOGIC Rate
ContactsFor more information contact LOGIC Participant Services 1-800-895-6442 www.logic.org
1201 Elm Street, Suite 3500, Dallas, TX 75270LOGIC BoardLOGIC Board Members
Philip G. Roberson Arlington ISD Board President
Fred L. Werner Qualifi ed Non-Participant Board Vice President
Sandra Newby Tarrant Regional Water District Board Member
Greg Jordan City of Grapevine Board Member
Erik Felthous North Texas Municipal Water District Board Member
(continued page 6)
ANNOUNCEMENTS Economic and Market Commentary:
Numbers game at the Fed
September 1, 2018
Even the Federal Reserve’s “gradual” path of rate normalization beats the excruciatingly
sluggish pace of the current confi rmation process of new governors. At the end of August,
Congress fi nally confi rmed Richard Clarida as vice chair. About time, especially for this
important position. But that leaves only four of seven board members in place. The governors
are still outnumbered on the policymaking Federal Open Market Committee (FOMC) by
the regional bank presidents, who have fi ve seats fi lled on 1-year rotating basis.
If you wonder why I bring up the Fed’s roster frequently, it is because there are signifi cant
diff erences between the two groups. While the regional presidents are policy experts, they
speak for their districts, and Atlanta has diff erent issues than Minneapolis, which has diff erent
issues than San Francisco, and so forth. Each district refl ects its own demographics. The
regional banks also have diff erent reports for which they are responsible, taking up time
and resources.
In contrast, Fed board governors consider the impact of monetary policy from a national and
global perspective. They take into consideration large-scale factors such as federal fi scal policy.
They are able to think about and research monetary policy full-time. With the exception of
TexPool Participant Services Managed and
1001 Texas Avenue, Suite 1400 ● Houston, TX 77002 Serviced by ee eratdd
Phone: 1-866-TEXPOOL (839-7665) ● Fax: 1-866-839-3291 ● TexPool.com G35884-24 (9/18)
We welcome the following
entities who joined TexPool in
August 2018:
TexPool
Brazoria County MUD 32
Shelby County
Comal County ESD 3
South Post Oak Redevelopment Authority
Valley Ranch Town Center Management District
Harrison County Housing Finance Corporation
Bartlett ISD
MHMR Services for the Concho Valley
Arlington Classics Academy
TexPool Prime
Lufkin ISD
Comal County ESD 3
City of Sulphur Springs
Wheeler County
Harrison County Housing Finance Corporation
Bartlett ISD
MHMR Services for the Concho Valley
Arlington Classics Academy
Upcoming Events
Sep 28, 2018 - Sep 30, 2018
Austin Convention Center, Austin
2018 TASA/TASB Annual Convention
Oct 10, 2018 - Oct 12, 2018
Fort Worth Convention Center, Ft. Worth
2018 Texas Municipal League Conference
Oct 16, 2018 - Oct 18, 2018,
Holiday Inn - San Antonio Riverwalk, San
Antonio 73rd Annual TACA Fall Conference
Oct 24, 2018 - Oct 26, 2018,
Moody Gardens Hotel, Galveston
GFOAT Fall Conference
TexPool Advisory Board Members
Jose Elizondo, Jr. Vivian Wood
Belinda Weaver Jerry Dale
Patrick Krishock Sharon Matthews
Michele Tuttle David Landeros
Overseen by the State of Texas Comptroller
of Public Accounts Glenn Hegar.
Operated under the supervision of the
Texas Treasury Safekeeping Trust Company
Monthly Newsletter: September 2018
Performance as of August 31, 2018
TexPool TexPool Prime
Current Invested Balance $17,069,457,093.00 $4,972,013,692.00
Weighted Average Maturity** 28 27
Weighted Average Life** 104 54
Net Asset Value 1.00002 1.00017
Total Number of Participants 2,499 337
Management Fee on Invested Balance 0.0473% 0.0638%
Interest Distributed $29,072,495.75 $8,978,281.50
Management Fee Collected $666,499.80 $237,010.84
Standard & Poor’s Current Rating AAAm AAAm
Month Averages
Average Invested Balance $17,892,740,387.38 $4,849,243,236.50
Average Monthly Rate* 1.92% 2.18%
Average Weighted Average Maturity** 28 32
Average Weighted Average Life** 101 60
*This average monthly rate for TexPool Prime for each date may refl ect a waiver of some portion or all of each of the management fees.
**See page 2 for defi nitions.
Past performance is no guarantee of future results.
G35884-24.indd 3 9/14/2018 2:44:31 PM
Pg: 2
Portfolio by Maturity (%)
As of August 31, 2018
■ 1-7 days 41.0
■ 8-30 days 33.8
■ 31-90 days 17.6
■ 91-180 days 7.5
■ 181+ days 0.1
Portfolio by Type of Investment (%)
As of August 31, 2018
■ Agencies 58.3
■ Repurchase Agreements 27.4
■ Treasurys 9.3
■ Money Market Funds 5.0
Portfolio Asset Summary as of August 31, 2018
Book Value Market Value
Uninvested Balance $20,052.85 $20,052.85
Receivable for Investments Sold 0.00 0.00
Accrual of Interest Income 9,417,647.76 9,417,647.76
Interest and Management Fees Payable -29,076,141.21 -29,076,141.21
Payable for Investments Purchased -138,772,500.00 -138,772,500.00
Accrued Expenses & Taxes -20,509.82 -20,509.82
Repurchase Agreements 4,725,254,000.00 4,725,254,000.00
Mutual Fund Investments 867,113,103.88 867,113,103.88
Government Securities 10,034,170,063.25 10,034,230,905.43
U.S. Treasury Infl ation Protected Securities 79,993,982.11 80,011,686.40
US Treasury Bills 1,521,357,394.17 1,521,559,232.40
US Treasury Notes 0.00 0.00
Total $17,069,457,092.99 $17,069,737,477.69
Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. The portfolio is managed by Federated Investment Counseling and the assets are safe kept in a separate
custodial account at State Street Bank in the name of TexPool. The only source of payment to the Participants is the assets of TexPool. There is no secondary source of payment for the pool such as insurance or
State guarantee. Should you require a copy of the portfolio, please contact TexPool Participant Services.
Participant Summary
Number of Participants Balance
School District 589 $4,895,757,958.21
Higher Education 57 $729,887,968.04
Healthcare 83 $559,267,496.17
Utility District 792 $2,475,486,561.44
City 460 $4,135,513,268.23
County 186 $1,768,721,438.19
Other 332 $2,504,755,113.40
**Defi nition of Weighted Average Maturity and Weighted Average Life
WAM is the mean average of the periods of time remaining until the securities held in TexPool (a) are scheduled to be repaid, (b) would be repaid upon a demand by TexPool, or (c) are scheduled to have their
interest rate readjusted to refl ect current market rates. Securities with adjustable rates payable upon demand are treated as maturing on the earlier of the two dates set forth in (b) and (c) if their
scheduled maturity is 397 days or less; and the later of the two dates set forth in (b) and (c) if their scheduled maturity is more than 397 days. The mean is weighted based on the percentage of the amortized
cost of the portfolio invested in each period.
WAL is calculated in the same manner as WAM, but is based solely on the periods of time remaining until the securities held in TexPool (a) are scheduled to be repaid or (b) would be repaid upon a demand by
TexPool, without reference to when interest rates of securities within TexPool are scheduled to be readjusted.
Monthly Newsletter: September 2018
G35884-24.indd 4 9/14/2018 2:44:34 PM
Pg: 3
Daily Summary
Date
Money Mkt. Fund
Equiv. (SEC Std.)
Dividend
Factor
TexPool Invested
Balance NAV WAM Days WAL Days
8/1 1.8962% 0.000051952 $18,195,246,159.44 0.99997 26 100
8/2 1.9093% 0.000052309 $18,149,993,606.06 0.99997 26 99
8/3 1.8944% 0.000051902 $18,079,354,782.43 0.99997 27 102
8/4 1.8944% 0.000051902 $18,079,354,782.43 0.99997 27 102
8/5 1.8944% 0.000051902 $18,079,354,782.43 0.99997 27 102
8/6 1.8910% 0.000051807 $18,017,456,548.88 0.99997 28 102
8/7 1.8996% 0.000052044 $18,152,548,878.11 0.99996 28 99
8/8 1.9060% 0.000052220 $18,327,243,346.88 0.99996 28 99
8/9 1.9168% 0.000052515 $18,404,224,763.81 0.99996 28 100
8/10 1.9228% 0.000052679 $18,493,548,157.47 0.99997 29 101
8/11 1.9228% 0.000052679 $18,493,548,157.47 0.99997 29 101
8/12 1.9228% 0.000052679 $18,493,548,157.47 0.99997 29 101
8/13 1.8841% 0.000051619 $18,182,560,106.81 0.99997 28 100
8/14 1.9233% 0.000052693 $17,889,403,457.76 0.99997 28 99
8/15 1.9398% 0.000053144 $17,778,879,993.81 0.99997 28 101
8/16 1.9422% 0.000053211 $17,790,980,370.53 0.99996 28 101
8/17 1.9127% 0.000052402 $17,711,523,499.95 0.99996 28 103
8/18 1.9127% 0.000052402 $17,711,523,499.95 0.99996 28 103
8/19 1.9127% 0.000052402 $17,711,523,499.95 0.99996 28 103
8/20 1.9135% 0.000052424 $17,632,703,371.27 0.99997 27 103
8/21 1.9178% 0.000052543 $17,599,793,017.34 0.99997 27 102
8/22 1.9194% 0.000052587 $17,535,533,264.37 0.99997 27 103
8/23 1.9292% 0.000052855 $17,461,425,010.91 0.99997 28 102
8/24 1.9382% 0.000053100 $17,821,188,296.33 0.99997 28 100
8/25 1.9382% 0.000053100 $17,821,188,296.33 0.99997 28 100
8/26 1.9382% 0.000053100 $17,821,188,296.33 0.99997 28 100
8/27 1.9448% 0.000053282 $17,770,521,397.25 0.99997 27 99
8/28 1.9464% 0.000053326 $17,701,584,906.87 0.99997 26 100
8/29 1.9423% 0.000053215 $17,468,952,756.58 0.99996 26 100
8/30 1.9447% 0.000053279 $17,229,599,750.50 0.99996 27 100
8/31 1.9641% 0.000053811 $17,069,457,092.99 1.00002 28 104
Average: 1.9205% 0.000052616 $17,892,740,387.38 .99997 28 101
G35884-24.indd 5 9/14/2018 2:44:35 PM
Pg: 4
TEXPOOL PRIME
Monthly Newsletter: September 2018
Portfolio by Maturity (%)
As of August 31, 2018
■ 1-7 days 42.1
■ 8-30 days 31.3
■ 31-90 days 19.2
■ 91-180 days 7.0
■ 181+ days 0.4
Portfolio by Type of Investment (%)
As of August 31, 2018
■ Commercial Paper 33.0
■ Variable Rate Notes 28.9
■ Repurchase Agreements 19.1
■ Money Market Funds 10.0
■ Government 9.0
Portfolio Asset Summary as of August 31, 2018
Book Value Market Value
Uninvested Balance -$1,176.17 -$1,176.17
Receivable for Investments Sold 0.00 0.00
Accrual of Interest Income 3,605,365.23 3,605,365.23
Interest and Management Fees Payable -8,978,283.1 -8,978,283.12
Payable for Investments Purchased 0.00 0.00
Accrued Expenses & Taxes -7,798.13 -7,798.13
Repurchase Agreements 949,746,000.00 949,746,000.00
Commercial Paper 1,642,563,632.07 1,642,786,800.30
Bank Instruments 0.00 0.00
Mutual Fund Investments 497,099,999.35 497,052,003.75
Government Securities 448,975,881.93 449,048,179.50
Variable Rate Notes 1,439,010,071.20 1,439,609,990.00
Total $4,972,013,692.36 $4,972,861,081.36
Market value of collateral supporting the Repurchase Agreements is at least 102% of the Book Value. The portfolio is managed by Federated Investment Counseling and the assets are safe kept in a separate
custodial account at State Street Bank in the name of TexPool Prime. The assets of TexPool Prime are the only source of payments to the Participants. There is no secondary source of payment for the pool such as
insurance or State guarantee. Should you require a copy of the portfolio, please contact TexPool Participant Services
Participant Summary
Number of Participants Balance
School District 116 $1,597,822,476.89
Higher Education 15 $657,373,644.81
Healthcare 13 $253,403,872.70
Utility District 29 $310,040,850.69
City 65 $966,601,967.39
County 38 $453,220,545.54
Other 61 $733,552,799.84
G35884-24.indd 6 9/14/2018 2:44:36 PM
Pg: 5
TEXPOOL PRIME
Daily Summary
Date
Money Mkt. Fund
Equiv. (SEC Std.)
Dividend
Factor
TexPool Prime
Invested Balance NAV WAM Days WAL Days
8/1 2.1779% 0.000059669 $4,958,292,559.61 1.00013 34 58
8/2 2.1724% 0.000059518 $4,969,832,916.56 1.00013 35 58
8/3 2.1625% 0.000059247 $4,956,251,407.19 1.00007 35 60
8/4 2.1625% 0.000059247 $4,956,251,407.19 1.00007 35 60
8/5 2.1625% 0.000059247 $4,956,251,407.19 1.00007 35 60
8/6 2.1595% 0.000059164 $4,929,155,006.52 1.00014 34 59
8/7 2.1633% 0.000059269 $4,939,120,762.71 1.00013 34 59
8/8 2.1680% 0.000059396 $4,917,902,360.01 1.00013 34 60
8/9 2.1780% 0.000059670 $4,901,272,845.79 1.00013 34 61
8/10 2.1744% 0.000059573 $4,975,367,059.63 1.00008 34 61
8/11 2.1744% 0.000059573 $4,975,367,059.63 1.00008 34 61
8/12 2.1744% 0.000059573 $4,975,367,059.63 1.00008 34 61
8/13 2.1813% 0.000059761 $4,908,495,770.52 1.00014 34 60
8/14 2.1846% 0.000059851 $4,817,772,450.05 1.00015 34 61
8/15 2.1995% 0.000060259 $4,786,998,360.37 1.00014 33 63
8/16 2.2061% 0.000060441 $4,797,196,154.75 1.00016 33 63
8/17 2.1905% 0.000060014 $4,806,005,516.96 1.00010 33 62
8/18 2.1905% 0.000060014 $4,806,005,516.96 1.00010 33 62
8/19 2.1905% 0.000060014 $4,806,005,516.96 1.00010 33 62
8/20 2.1856% 0.000059880 $4,797,462,731.95 1.00015 30 60
8/21 2.1895% 0.000059987 $4,771,399,432.54 1.00015 31 60
8/22 2.1865% 0.000059903 $4,715,321,845.92 1.00015 31 60
8/23 2.1913% 0.000060036 $4,709,293,748.42 1.00015 32 62
8/24 2.1917% 0.000060046 $4,679,406,904.14 1.00010 32 62
8/25 2.1917% 0.000060046 $4,679,406,904.14 1.00010 32 62
8/26 2.1917% 0.000060046 $4,679,406,904.14 1.00010 32 62
8/27 2.1930% 0.000060082 $4,698,816,692.46 1.00015 29 59
8/28 2.1871% 0.000059920 $4,714,463,516.95 1.00015 29 58
8/29 2.1782% 0.000059678 $4,769,293,502.02 1.00015 29 57
8/30 2.1653% 0.000059324 $5,001,343,318.33 1.00015 27 53
8/31 2.1718% 0.000059502 $4,972,013,692.36 1.00017 27 54
Average: 2.1805% 0.000059740 $4,849,243,236.50 1.00012 32 60
G35884-24.indd 1 9/14/2018 2:44:25 PM
the New York Fed president, who operates more like a governor due
to the importance of that bank, regional Fed presidents don’t interact
with the international community or regularly meet with other
central bankers. Board governors represent the U.S. in world aff airs,
and we need a full complement.
The more pressing Fed issue is this month’s FOMC meeting. The
markets think there is more than a 90% chance of a 25-basis-point
hike, with a little over 60% likelihood of another in December. So,
the market is expecting continued increases which, at 2.25-50% at
the end of this year, would take us close to the Fed’s neutral target of
2.9%. The markets still don’t know what will happen with the
balance sheet. There has been no guidance yet on that, which is
frustrating. I expected some two meetings ago.
Libor was essentially unchanged over the month, with 1-month at
2.08%, 3-month at 2.32% and 6-month at 2.53%).
Participant Services
1001 Texas Ave. 14th Floor
Houston, TX 77002
90-Day Treasury Bill is a short-term debt instrument backed by the national government. These are
used to collect immediate cash to meet outstanding obligations.
Any private investor can invest in a Treasury bill. The 90-Day Treasury Bill is a weighted average
rate of the weekly auctions of 90-Day Treasury Bills.
Past performance is no guarantee of future results.
TexPool
Prime Rate
TexPool & TexPool Prime vs. 90-Day Treasury Bill
90-Day
T-Bill Rate
TexPool
Rate
1.8%
1.9%
2.0%
2.1%
2.2%
2.3%
8/318/157/317/156/306/15
G35884-24.indd 2 9/14/2018 2:44:30 PM
Monthly Newsletter — September 2018
For more information about TexSTAR, please visit our web site at www.texstar.org.
Performance
As of September 30, 2018
Current Invested Balance $6,458,418,968.50
Weighted Average Maturity (1) 43 Days
Weighted Average Maturity (2) 107 Days
Net Asset Value 0.999935
Total Number of Participants 883
Management Fee on Invested Balance 0.06%*
Interest Distributed $11,223,374.86
Management Fee Collected $327,074.35
% of Portfolio Invested Beyond 1 Year 7.21%
Standard & Poor’s Current Rating AAAm
Rates reflect historical information and are not an indication of future performance.
September Averages
Average Invested Balance $6,632,102,602.16
Average Monthly Yield, on a simple basis 1.9995%
Average Weighted Average Maturity (1)* 30 Days
Average Weighted Average Maturity (2)* 96 Days
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.
* The maximum management fee authorized for the TexSTAR Cash Reserve Fund is 12 basis points. This fee may be waived in full or in part in the discretion of the TexSTAR co-administrators at any time as provided for in the TexSTAR Information Statement.
Economic Commentary
The Federal Reserve (Fed) raised short-term interest rates for a third time this year and signaled it will progress with plans to
gradually tighten policy even as central bankers face White House pressure for low borrowing costs and concerns over the trade
war with China. As anticipated, the Fed boosted the federal funds rate target range by 25bps to 2.00%-2.25% at its September
Federal Open Market Committee (FOMC) meeting. The FOMC statement maintained existing language refl ecting the solid
economic backdrop in the U.S., roughly balanced risks to the outlook and the appropriateness of further gradual rate hikes.
The most interesting change was the reference to the stance of monetary policy, which was previously described as remaining
accommodative, but has been subsequently removed. This change further distances the Fed from the extraordinarily easy policy
and explicit forward guidance used at the zero lower bound. The median interest rate forecast “dot plot” was largely unchanged,
telegraphing one more rate hike in 2018, three in 2019 and one in 2020. The description of the economy was upbeat and growth
projections were modestly upgraded. Both the infl ation and unemployment forecasts were mostly unchanged from the June meeting.
Our base case scenario remains above trend growth although escalating trade battles could depress business confi dence and
tighten fi nancial conditions. The probability of recession is still low. Fiscal stimulus in the U.S., a well-capitalized global banking
system, strong U.S. consumer balance sheets and central banks that are overly cautious in restoring normality to the system
are on the growing laundry list of reasons not to expect a recession any time soon. While the U.S. yield curve has fl attened,
which has historically been a reasonable indicator of approaching recession, we believe the monetary distortions present in this
cycle are a meaningful difference accentuating curve fl attening. We will see how the next couple quarters play out for the curve
as quantitative easing (QE) gives way to quantitative tightening (QT) and the tax reform incentive for U.S. plans to contribute
to their pension funds ends. This is the quarter we have all been waiting for: QE becomes QT, U.S. fi scal stimulus accelerates,
Treasury supply mushrooms, Brexit is a reality, and trade wars loom. There will be increased volatility. There will be markets
that become overbought or oversold and the opportunity to take advantage of these shifts in investor sentiment as they arise.
This information is an excerpt from an economic report dated September 2018 provided to TexSTAR by JP Morgan Asset Management, Inc., the investment manager of the TexSTAR pool.
New Participants
We would like to welcome the following entities who joined the TexSTAR program in September:
City of Krugerville Krugerville Community Development Corp
Krugerville Economic Development Corp Lago Mar Development Authority
Holiday Reminder
In observance of Columbus Day, TexSTAR will be closed on Monday, October 8, 2018. All ACH transactions initiated on Friday,
October 5th, will settle on Tuesday, October 9th. Please plan accordingly for your liquidity needs.
Distribution of
Participants by Type
As of September 30, 2018
Portfolio by
Type of Investment
As of September 30, 2018
Book Value Market Value
Uninvested Balance $ 435.41 $ 435.41
Accrual of Interest Income 4,382,010.46 4,382,010.46
Interest and Management Fees Payable (11,238,824.85) (11,238,824.85)
Payable for Investment Purchased 0.00 0.00
Repurchase Agreement 2,415,928,999.71 2,415,928,999.71
Government Securities 4,049,346,347.77 4,048,930,126.05
Total $ 6,458,418,968.50 $ 6,458,002,746.78
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 TexSTAR. The only source of payment to the Participants are the assets of TexSTAR. 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 TexSTAR Participant Services.
Information at a Glance
Portfolio Asset Summary as of September 30, 2018
Average Book Market Net Number of
Month Rate Value Value Asset Value WAM (1)* WAM (2)* Participants
Sep 18 1.9995% $6,458,418,968.50 $6,458,002,746.78 0.999935 30 96 883
Aug 18 1.9225% 6,701,017,159.16 6,701,228,119.73 0.999971 24 91 879
Jul 18 1.8965% 6,837,425,331.68 6,837,427,966.67 1.000000 19 84 877
Jun 18 1.8300% 6,250,002,595.51 6,250,027,195.61 0.999991 26 99 874
May 18 1.7258% 6,489,773,533.02 6,489,474,005.73 0.999953 29 106 868
Apr 18 1.6304% 6,358,425,417.53 6,358,101,312.82 0.999949 18 99 861
Mar 18 1.4995% 6,461,363,510.56 6,460,804,379.93 0.999892 28 105 857
Feb 18 1.3518% 7,130,310,070.00 7,129,718,573.04 0.999917 28 97 854
Jan 18 1.2900% 7,090,345,755.93 7,090,199,741.00 0.999979 31 83 853
Dec 17 1.1762% 6,518,450,917.63 6,518,448,483.33 0.999984 36 82 853
Nov 17 1.0695% 6,157,485,042.89 6,157,068,439.39 0.999932 38 90 853
Oct 17 1.0482% 5,848,642,382.89 5,848,708,234.12 1.000011 38 96 852
Agencies
43.78%1 to 7 days
46.63%
31 to 90 days
19.74%
8 to 30 days
13.51%
City
26.05%
Health Care
3.06%
County
6.12%
Other
7.70%
Historical Program Information
Portfolio by
Maturity
As of September 30, 2018
Repurchase
Agreements
37.37%
Treasuries
18.85%
School District
31.03%
Higher
Education
2.83%
Utility District
23.21%
91 to 180 days
16.05%
181+ days
4.07%
0.00
0.15
0.30
0.45
0.60
0.75
0.90
1.05
1.20
1.35
1.50
1.65
1.80
1.95
2.10
2.25
TexSTAR Rate 90 Day T-BILL Rate
TexSTAR versus 90-Day Treasury Bill
Mny Mkt Fund Daily Allocation TexSTAR Invested Market Value WAM WAM
Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)*
9/1/2018 1.9518% 0.000053473 $6,701,017,159.16 0.999971 19 87
9/2/2018 1.9518% 0.000053473 $6,701,017,159.16 0.999971 19 87
9/3/2018 1.9518% 0.000053473 $6,701,017,159.16 0.999971 19 87
9/4/2018 1.9402% 0.000053157 $6,665,047,970.37 0.999967 24 90
9/5/2018 1.9494% 0.000053407 $6,547,923,835.44 0.999959 27 94
9/6/2018 1.9549% 0.000053558 $6,563,754,526.50 0.999963 27 97
9/7/2018 1.9593% 0.000053680 $6,544,637,641.90 0.999955 26 95
9/8/2018 1.9593% 0.000053680 $6,544,637,641.90 0.999955 26 95
9/9/2018 1.9593% 0.000053680 $6,544,637,641.90 0.999955 26 95
9/10/2018 1.9686% 0.000053934 $6,534,005,098.49 0.999942 29 97
9/11/2018 1.9692% 0.000053950 $6,587,820,254.83 0.999946 30 94
9/12/2018 1.9752% 0.000054114 $6,667,204,607.42 0.999950 31 95
9/13/2018 1.9920% 0.000054576 $6,713,789,818.43 0.999949 34 99
9/14/2018 1.9829% 0.000054325 $6,737,988,513.29 0.999946 32 97
9/15/2018 1.9829% 0.000054325 $6,737,988,513.29 0.999946 32 97
9/16/2018 1.9829% 0.000054325 $6,737,988,513.29 0.999946 32 97
9/17/2018 2.0091% 0.000055045 $6,762,492,185.16 0.999942 32 96
9/18/2018 1.9858% 0.000054406 $6,821,445,871.11 0.999938 31 95
9/19/2018 1.9820% 0.000054302 $6,716,906,933.52 0.999932 31 96
9/20/2018 1.9813% 0.000054282 $6,697,624,013.26 0.999924 31 95
9/21/2018 1.9829% 0.000054327 $6,665,160,728.16 0.999915 30 94
9/22/2018 1.9829% 0.000054327 $6,665,160,728.16 0.999915 30 94
9/23/2018 1.9829% 0.000054327 $6,665,160,728.16 0.999915 30 94
9/24/2018 2.0069% 0.000054983 $6,631,036,905.28 0.999913 30 94
9/25/2018 2.0039% 0.000054901 $6,587,166,063.01 0.999920 32 97
9/26/2018 2.0057% 0.000054951 $6,604,208,386.78 0.999926 32 96
9/27/2018 2.1084% 0.000057765 $6,540,982,562.07 0.999730 42 104
9/28/2018 2.1735% 0.000059547 $6,458,418,968.50 0.999935 43 107
9/29/2018 2.1735% 0.000059547 $6,458,418,968.50 0.999935 43 107
9/30/2018 2.1735% 0.000059547 $6,458,418,968.50 0.999935 43 107
Average 1.9995% 0.000054780 $6,632,102,602.16 30 96
Daily Summary for September 2018
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 TexSTAR management fee may be waived in full or in part at the discretion of the TexSTAR co-administrators and the TexSTAR 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 TexSTAR pool to the T-Bill Yield, you should know that the TexSTAR 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. The TexSTAR yield is calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940 as promulgated from time to time by the federal Securities and Exchange Commission.
TexSTAR Board Members
William Chapman Central Texas Regional Mobility Authority Governing Board President
Nell Lange City of Frisco Governing Board Vice President
Eric Cannon City of Allen Governing Board Treasurer
David Medanich Hilltop Securities Governing Board Secretary
Jennifer Novak J.P. Morgan Asset Management Governing Board Asst. Sec./Treas.
Monte Mercer North Central TX Council of Government Advisory Board
Becky Brooks City of Grand Prairie Advisory Board
Nicole Conley Austin ISD Advisory Board
David Pate Richardson ISD Advisory Board
James Mauldin University of North Texas System Advisory Board
Ron Whitehead Qualifi ed Non-Participant Advisory Board
For more information contact TexSTAR Participant Services 1-800-839-7827 www.texstar.org
1201 Elm Street, Suite 3500, Dallas, TX 75270
Insights for Investors
October 2018 Economic Review
Texas CLASS Trading Desk (https://www.texasclass.com/author/texas-class-trading-desk/) October
12, 2018
A High-Flying U.S. Economy and a Soft Landing
Due to a combination of factors, the United States economy is currently the envy of the world;
however, for the Federal Reserve Governors, such strength also gives pause. The Governors are
currently wrestling with how long and how much growth can or should continue and how much
support is appropriate. The economy is operating near full capacity, jobless claims are near historic
lows, and the combined benefits of the tax cut and resolution of trade agreements will support
continued growth. Unfortunately, the good times cannot last forever.
As developing economies follow Turkey and Argentina into recession and China and Western Europe
experience comparatively slower growth, global investors are seeking strong and safe returns. The
recently signed US-Mexico-Canada Agreement (that replaced NAFTA) could also lead to increased
investment or demand for U.S. dollars, thereby widening the gap between the currencies of trading
partners. Ultimately, this could expand the trade deficit and, because oil is priced in dollars, increase
the price of oil. In a worst-case scenario, inflation would be up, and economic growth would
eventually be down.
The Fed is seeking to head off such a scenario by moderating growth and bringing the economy in for
a soft landing. The Fed’s current consensus calls for one more rate hike in December of 2018 with an
additional three expected in 2019. Additionally, the benefit of the tax cut is expected to be fully
absorbed by the second half of 2019. Policies that have weighed on international economies should
moderate, and global economic convergence should occur.
Due to the Fed’s reliance on economic indicator data, the market will have some visibility in advance
of any potential actions.
Treasury Yields
Maturity 10/9/18 9/10/18 Change
3-Month 2.213%2.125%0.088%
6-Month 2.421%2.304%0.117%
1-Year 2.617%2.512%0.105%
2-Year 2.885%2.711%0.174%
October 2018 Economic Review -Texas CLASS
3-Year 2.979%2.778%0.202%
5-Year 3.056%2.823%0.233%
10-Year 3.206%2.931%0.275%
30-Year 3.369%3.081%0.288%
Agency Yields
Maturity 10/9/18 9/10/18 Change
3-Month 2.244%2.166%0.078%
6-Month 2.367%2.258%0.109%
1-Year 2.537%2.433%0.104%
2-Year 2.936%2.763%0.173%
3-Year 3.022%2.831%0.191%
5-Year 3.157%2.934%0.223%
Commercial Paper Yields (A-1/P-1)
Maturity 10/9/18 9/10/18 Change
1-Month 2.250%2.080%0.170%
3-Month 2.390%2.260%0.130%
6-Month 2.580%2.470%0.110%
9-Month 2.730%2.610%0.120%
Current Economic Releases
Data Period Value
GDP QoQ Q2 ’18 4.20%
U.S. Unemployment Sept ’18 3.70%
ISM Manufacturing Sept ’18 59.80
PPI YoY Sept ’18 3.00%
CPI YoY Sept ’18 2.30%
Fed Funds Target October 2018 2.00% – 2.25%
Source: Bloomberg
Data unaudited. Information is obtained from third party sources that may or may not be verified. Many factors affect performance including changes in
market conditions and interest rates and in response to other economic, political, or financial developments. All comments and discussions presented
are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The
information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or
change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable
research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of
future performance. Any financial and/or investment decision may incur losses.
October 2018 Economic Review -Texas CLASS