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Home My WebLink AboutAudit Committee-Agenda Packets-05/14/2019City 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, May 14, 2019 4:30 p.m. City Manager’s Conference Room Third Floor – City Hall 1.CALL TO ORDER 2.REPORTS Quarterly Investment Report for the quarter ended March 31, 2019 3.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, May 3, 2019, 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 Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 2 Agenda Date 5/14/2019 Number Type Presentation Department City Manager Title Quarterly Investment Report for the quarter ended March 31, 2019 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 March 31, 2019: Cash & Cash Equivalents (Local Government Investment Pools) were $77,274,594. The total funds held by the City equaled $93,172,435 and were allocated as follows: Current As of 3/31/2019 Last Quarter As of 12/31/2018 Cash $ 5,209,519 $ 5,660,207 Sweep 15,478,377 13,338,876 Commercial Paper Investment Pool 2,434,595 2,419,045 Government Only Investment Pool 54,152,102 48,848,670 Government Issuances 12,582,619 14,582,431 CDARS 2,571,221 2,571,221 Certificates of Deposit 744,000 744,000 Total Cash & Investments $ 93,172,434 $ 88,164,452 Benchmarkb2.44% Investments As of 3/31/2019 Sweep 2.28% LOGIC Commercial Paper Investment Pool Average Quarterly Yield 2.60% TexSTAR Government Only Investment Pool Average Quarterly Yield 2.40% TexPOOL Government Only Investment Pool Average Quarterly Yield 2.40% CLASS Government Only Investment Pool Average Quarterly Yield 2.42% Total Government Only Investment Pool Average Quarterly Yield 2.41% Average Weighted Yield: Agency 1.57% Average Weighted Yield: CDARS 1.44% City of Colleyville Page 2 Audit Committee Agenda Briefing Average Weighted Yield: CD'S 2.53% Interest earnings for the quarter were $431,840 versus $331,028 for the prior quarter, an increase of $100,812 or 30% over last quarter. The significant increase is due to the 28% increase in funds invested in Government only investment pools and switching to a higher yielding sweep account. These percentages are within the guidelines of the City investment policy. Attachments 1.Quarterly Investment Report - March 2019 QUARTERLY INVESTMENT REPORT FOR QUARTER ENDING MARCH 31, 2019 THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT AND ADOPTED INVESTMENT POLICY STRATEGY Shereen Gendy Karen Hines Portfolio Investment Reportfor the Quarter Ending March 31, 2019CONSOLIDATED INVESTMENT REPORTCurrent Last QuarterAs of As ofCash and Investment Balances 3/31/2019 12/31/2018Cash 5,209,519$ 5,660,208$ Sweep 15,478,377$ 13,338,877$ Commercial Paper Investment Pool 2,434,595$ 2,419,045$ Government Only Investment Pool 54,152,102$ 48,848,670$ Government Issuances 12,582,619$ 14,582,431$ CDARS2,571,221$ 2,571,221$ Certificates of Deposit 744,000$ 744,000$ Total Cash & Investments 93,172,434$ 88,164,452$ Investment Yields, Maturities, and InterestCurrent CurrentAs of As of3/31/2019 12/31/201813 Week Treasury Benchmark 2.44% 2.31%Sweep2.28% 2.16%LOGIC Commercial Paper Investment Pool Average Quarterly Yield 2.60% 2.41%LOGIC Commercial Paper Investment Pool Quarter's Average Weighted Maturity 39 43 TexSTAR Government Only Investment Pool Average Quarterly Yield2.40% 2.17%TexSTAR Government Only Investment Pool Quarter's Average Weighted Maturity 41 36 TexPOOL Government Only Investment Pool Average Quarterly Yield2.40% 2.11%TexPOOL Government Only Investment Pool Quarter's Average Weighted Maturity25 31 CLASS Government Only Investment Pool Average Quarterly Yield 2.42% 2.25%CLASS Government Only Investment Pool Quarter's Average Weighted Maturity 47 38 Total Government Only Investment Pool Average Quarterly Yield 2.41% 2.18%Total Government Only Investment Pool Quarter's Average Weighted Maturity 38 35 Average Weighted Yield: Agency 1.57% 1.53%Average Weighted Maturity in Days: Agency 192 252 Average Weighted Yield: CDARS 1.44% 1.44%Average Weighted Maturity in Days: CDARS 161 250 Average Weighted Yield: CD'S 2.53% 2.53%Average Weighted Maturity in Days: CD'S 365 455 Interest Earnings - Quarter 431,840$ 331,028$ Portfolio Investment Reportfor the Quarter Ending March 31, 2019CONSOLIDATED INVESTMENT REPORTCash 5%Sweep 17%Commercial Paper Investment Pool 3%Government Only Investment Pool 58%Government Issuances13%CDARS3%Certificates of Deposit 1%CASH & INVESTMENT BALANCES Portfolio Investment Reportfor the Quarter Ending March 31, 2019CONSOLIDATED INVESTMENT REPORT Distribution by Maturity Number1 to 90 days 1 1,000,000$ 7.95%999,130.87$ 91 to 180 days 2 1,500,000$ 11.92% 1,493,186.27$ 181 to 365 days 9 10,082,619$ 80.13% 10,062,082.97$ Over 365 days 0 -$ 0.00% -$ Total12 12,582,619$ 100% 12,554,400$ Distribution by Type of Investment NumberFederal Home Loan Bank (FHLB) 3 $4,197,834 33% $4,181,649Federal Farm Credit Bank (FFCB) 6 $5,989,916 48% $5,986,222Federal Home Loan Mortgage Corporation (FHLMC) 3 $2,394,870 19% $2,386,529Total12 12,582,619$ 100% 12,554,400$ Outstanding Security PortfolioPurchase PricePercent (Value)Market ValueOutstanding Security Portfolio Purchase PricePercent (Value)Market Value33%, Federal Home Loan Bank (FHLB)48%, Federal Farm Credit Bank (FFCB)19%, Federal Home Loan Mortgage Corporation (FHLMC)INVESTMENT SECURITY DISTRIBUTION BY TYPE ALL FUNDS CASH & INVESTMENT REPORTS CASH & SWEEP CP POOLS GOV. POOLS* INVESTMENTS CDARS CD'S AS OF MARCH 31, 2019 Ran 5.8.19 001 GENERAL FUND 140,840 300,000 12,247,574 2,294,835 1,543,297 744,000 17,270,546 036 STRATEGIC INITIATIVE 129,047 - 387,142 - - - 516,190 004 DEBT SERVICE FUND 220,718 - 35,373 - - - 256,091 003 CAPITAL PROJECTS 9,284,076 821,763 4,720,916 2,289,216 512,577 - 17,628,547 012 PARK LAND DEDICATION 9,473 - 248,678 1,210,000 - - 1,468,151 032 VEHICLE AND CAPITAL REPLACEMENT 56,669 - 1,187,721 364,300 - - 1,608,690 034 COLLEYVILLE TOMORROW 634,591 - 1,889,994 - - - 2,524,585 035 PARKS TOMORROW 265,704 - 797,112 - - - 1,062,816 005 VOLUNTARY PARK FUND 4,605 - 454,045 750,000 - - 1,208,651 007 DONATIONS FUND 45,329 - - - - - 45,329 011 VOLUNTARY LIBRARY FUND 114,211 - 338,140 - - - 452,350 015 POLICE ASSET FORFEITURE 6,000 - 16,821 - - - 22,821 016 GRANTS (ADVANCE PAYMENTS) 7,085 - - - - - 7,085 018 TREE PRESERVATION 81,690 - 238,900 - - - 320,589 019 LIBRARY DONATION (34,701) - - - - - (34,701) 020 RECREATIONAL EVENT 14,190 - - - - - 14,190 023 LEOSE 3,629 - - - - - 3,629 027 CRIME DISTRICT 197,879 - 593,636 - - - 791,515 028 KIDSVILLE MAINTENANCE 2,000 - 3,862 - - - 5,862 029 COURT TECHNOLOGY 12,078 - 5,999 - - - 18,077 030 COURT SECURITY 15,000 - 33,941 - - - 48,941 033 PUBLIC ART 2,000 - 5,967 - - - 7,967 037 JUVENILE CASE MANAGER 6,662 - 11,595 - - - 18,257 038 HOTEL / MOTEL FUND 93,759 - 277,624 - - - 371,383 002 UTILITY FUND 802 - 4,956,834 2,704,116 515,348 - 8,177,100 039 UTILITY CAPITAL PROJECTS FUND 2,875,023 480,041 8,185,121 56,793 - - 11,596,978 017 DRAINAGE FEE 100,024 32,776 330,514 200,000 - - 663,314 041 DRAINAGE CAPITAL PROJECTS FUND 435,000 - 1,292,517 - - - 1,727,517 006 SESQUICENTINIAL FUND 18,009 - 3,256 - - - 21,265 008 EMPLOYEE ACTIVITY 2,501 - - - - - 2,501 040 INSURANCE TRUST FUND (ADV PMNT) (5,439) - - - - - (5,439) 026 TIF FUND 3,322,114 800,000 15,888,820 1,213,360 - - 21,224,294 18,060,567 2,434,580 54,152,102 11,082,619 2,571,221 744,000 89,045,090 024 CEDC 2,627,329 16 - 1,500,000 - - 4,127,345 20,687,896 2,434,595 54,152,102 12,582,619 2,571,221 744,000 93,172,435 TEXPOOL 25,391,241 CASH 5,209,519 TEXSTAR 10,572,556 SWEEP 15,478,377 CLASS 18,188,306 TOTAL 20,687,896 TOTAL 54,152,102 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 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 *GOV POOLS ALLOCATION CASH/SWEEP ALLOCATION DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS SPECIAL REVENUE FUNDS ENTERPRISE FUNDS FIDUCIARY FUNDS 1 2 Available Available for Approved Restricted AS OF MARCH 31, 2019 Unrestricted Restricted Purpose Projects Unavailable Ran 5.8.19 001 GENERAL FUND 17,153,085 32,548 - 84,913 17,270,546 036 STRATEGIC INITIATIVE 516,190 - - - 516,190 004 DEBT SERVICE FUND - 256,091 - - 256,091 003 CAPITAL PROJECTS 8,627,053 7,240,965 1,609,907 150,623 17,628,547 012 PARK LAND DEDICATION - 1,468,151 - - 1,468,151 032 VEHICLE AND CAPITAL REPLACEMENT - 1,608,690 - - 1,608,690 034 COLLEYVILLE TOMORROW 2,524,585 - - - 2,524,585 035 PARKS TOMORROW 1,062,816 - - - 1,062,816 005 VOLUNTARY PARK FUND - 1,208,651 - - 1,208,651 007 DONATIONS FUND - 45,329 - - 45,329 011 VOLUNTARY LIBRARY FUND - 452,350 - - 452,350 015 POLICE ASSET FORFEITURE 22,821 22,821 016 GRANTS - 7,085 - - 7,085 018 TREE PRESERVATION - 320,589 - - 320,589 019 LIBRARY DONATION - (34,701) - - (34,701) 020 RECREATIONAL EVENT - 14,190 - - 14,190 023 LEOSE - 3,629 - - 3,629 027 CRIME DISTRICT - 791,515 - - 791,515 028 KIDSVILLE MAINTENANCE - 5,862 - - 5,862 029 COURT TECHNOLOGY - 18,077 - - 18,077 030 COURT SECURITY - 48,941 - - 48,941 033 PUBLIC ART - 7,967 - - 7,967 037 JUVENILE CASE MANAGER - 18,257 - - 18,257 038 HOTEL / MOTEL FUND - 371,383 - - 371,383 002 UTILITY FUND 7,695,430 - - 481,670 8,177,100 039 UTILITY CAPITAL PROJECTS FUND 5,335,305 5,131,297 1,076,638 53,737 11,596,978 017 DRAINAGE FEE 630,538 - - 32,776 663,314 041 DRAINAGE CAPITAL PROJECTS FUND 1,360,240 - 367,277 - 1,727,517 006 SESQUICENTINIAL FUND 3,256 18,009 - - 21,265 008 EMPLOYEE ACTIVITY - - - 2,501 2,501 040 INSURANCE TRUST FUND (5,439) (5,439) 026 TIF FUND 20,474,294 - 750,000 - 21,224,294 65,382,791 19,057,695 3,803,822 800,782 89,045,090 024 CEDC 3,893,417.53 - 233,927.00 - 4,127,344.53 69,276,209 19,057,695 4,037,749 800,782 93,172,435 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. The approved projects column represents the contracts awarded and approved by council. The department heads provide those numbers on a quarterly basis. This is a management report prepared not in accordance with GASB SPECIAL REVENUE FUNDS ENTERPRISE FUNDS FIDUCIARY FUNDS COMPONENT UNIT COLLEYVILLE ECON DEV CORP GRAND TOTAL COLOR CODE DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS FIDUCIARY FUNDS CITY OF COLLEYVILLE ALL FUNDS CASH & INVESTMENT REPORT - RESTRICTIONS BY FUND CASH & INVESTMENTS GOVERNMENTAL FUNDS ENTERPRISE FUNDS REVENUE SOURCE PURPOSE/RESTRICTION001 GENERAL FUND M&O portion of tax rate, sales tax, charges for service, etc. General government purposes036 STRATEGIC INITIATIVES Transfers from the General Fund Programs/projects linked to the strategic plan; primarily used on eco. dev. incentives004 DEBT SERVICE Debt (I&S) portion of the tax rate Payments on debt issued003 CAPITAL PROJECTS Transfers from the General Fund, street impact fees, escrows Capital projects; some funding sources have restricted uses012 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 replacements034 COLLEYVILLE TOMORROW Gas leases on City property Capital purchases/at Council discretion035 PARKS TOMORROW Gas leases on City park property Parks capital projects005 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 donor011 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 law016 GRANTS Grants Track grant actvity018 TREE PRESERVATION Tree mitigation fees Tree replanting on city‐owned property019 LIBRARY DONATION Donations Library needs or as specified by donor020 RECREATIONAL EVENT Event revenue (like sale of tables) Special events expenses023 LEOSE State of Texas Police training027 CRIME DISTRICT (CCCPD) 0.5 cent sales tax Public safety and crime control activities028 KIDSVILLE MAINTENANCE Remaining donations Kidsville maintenance029 COURT TECHNOLOGY Municipal court technology fee Court technology repairs, replacements, and upgrades030 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 Art037 JUVENILE CASE MANAGER Juvenile case manager fee Staff who handle juvenile defendants and their training038 HOTEL/MOTEL FUND Hotel/Motel tax Attract "heads in beds"; specific uses outlined in state law002 UTILITY OPERATING FUND Water and wastewater base rates and volumetric rates Utility operations and payments to TRA017 DRAINAGE FEE FUND Monthly drainage fee Operations and capital projects related to drainage maintenance and improvement039 UTILITY CAPITAL PROJECTS FUND Transfers from Utility Operating Fund, impact fees, CIP base rate Utility capital projects; water and wastewater impact fees have restricted uses041 DRAINAGE‐ CAPITAL PROJECTS FUND Transfers from Drainage Operating Fund Drainage capital projects006 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 ACTIVITYEmployee contributions Employee luncheons and other employee activities; governed by by‐laws040 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 partners024 CEDC 0.5 cent sales tax For Library, Parks, and Colleyville Center; max. 10% on promotional expenses and special events025 CEDC ‐ CAPITAL Bond proceeds Bond projects: Library, City Park, McPherson Park, Colleyville Center capital projectsCOLOR CODEDEBT SERVICE FUNDSCAPITAL PROJECT FUNDSSPECIAL REVENUE FUNDSENTERPRISE FUNDSFIDUCIARY FUNDSCOLLEYVILLE ECON DEV CORPCITY FUNDS ‐ BACKGROUNDGOVERNMENTAL FUNDSENTERPRISE FUNDSFIDUCIARY FUNDSCOMPONENT UNIT LISTING OF INVESTMENTS BY TYPE FUND ALLOCATION AMOUNTPURCHASE DATEMATURITY DATEINTEREST RATEINTEREST EARNED DURING QUARTERUTILITY FUND $515,348 7/27/2017 7/25/2019 0.40% $508GENERAL FUND $1,543,297 9/19/2018 9/19/2019 2.08% $7,909CAPITAL PROJECTS $512,577 9/21/2017 9/19/2019 0.58% $733PURCHASED DURING THIS QUARTER$0 $0OUTSTANDING CDARS AT THE END OF THE QUARTER $2,571,221 $9,150MATURED DURING THIS QUARTER$0CDARS MATURED DURING THE QUARTER$0 $0GRAND TOTAL 2,571,221 9,150 CDARS CERTIFICATES OF DEPOSIT FUND ALLOCATION AMOUNTPURCHASE DATEMATURITY/SALE DATEMarket ValueINTEREST RATEINTEREST EARNED DURING QUARTERGENERAL FUND - CITIBANK $248,000 3/29/2018 3/30/2020 248,041.85 2.50% $1,529GENERAL FUND - GOLDMAN SACHS BANK $248,000 4/11/2018 4/13/2020 248,172.12 2.55% $1,559GENERAL FUND - HOPE BANK $248,000 9/14/2018 3/16/2020 248,171.03 2.55% $1,559PURCHASED DURING THIS QUARTER$0 - $0OUTSTANDING CD'S AT THE END OF THE QUARTER$744,000 $744,385 $4,647MATURED/SOLD DURING THIS QUARTER$0CD'S MATURED DURING THE QUARTER- - GRAND TOTAL744,000 4,647 CD'S - CERTIFICATES OF DEPOSIT INTERESTCUSIP SECURITY PURCHASE MATURITY PURCHASE PAR MARKET LESS PLUS MARKET YIELD ON INTEREST TO MATURITYDATE DATE PRICE VALUE VALUE MATURITY PERIOD VALUE INVESTMENT12/31/2018PROCEEDS PURCHASES3/31/20193133EHHN6 FFCB NOTE 5/3/2017 5/2/2019 $1,000,000 $1,000,000 $996,310 $999,131 1.350% $3,329 $26,9633133EHP98 FFCB NOTE 11/6/2017 11/6/2019 $1,000,000 $1,000,000 $990,968 $995,564 1.600% $3,945 $32,0003137EAEH8 FHLMC NOTE 7/31/2017 8/15/2019 $500,000 $500,000 $495,983 $498,063 1.475% $1,818 $15,053313380FB8 FHLB NOTE 8/29/2017 9/13/2019 $1,000,000 $1,000,000 $991,312 $995,123 1.375% $3,390 $28,0653137EADM8 FHLMC NOTE 9/14/2017 10/2/2019 $998,788 $1,000,000 $911,914$915,842.05 1.250% $3,082 $25,6163137EADM8 FHLMC NOTE 10/13/2017 10/2/2019 $896,082 $900,000 $968,453 $972,624.25 1.475% $3,273 $26,1503130ACLS1 FHLB NOTE 10/26/2017 10/11/2019 $2,200,000 $2,200,000 $2,181,049 $2,189,320 1.550% $8,408 $66,7943133EHV75 FFCB NOTE 12/8/2017 11/21/2019 $749,711 $750,000 $743,639 $747,028 1.730% $3,199 $25,3463133EGJ30 FFCB NOTE 12/29/2017 11/18/2019 $1,238,775 $1,255,000 $1,237,603 $1,245,186 1.100% $3,404 $26,0593133EJCN7 FFCB NOTE 2/14/2018 2/14/2020 $1,000,000 $1,000,000 $995,052 $997,245 2.070% $5,104 $41,4003130ADN32 FHLB NOTE 3/7/2018 2/11/2020 $997,834 $1,000,000 $995,316 $997,206 2.240% $5,523 $43,3273133EJHL6 FFCB NOTE 4/9/2018 3/27/2020 $1,001,430 $1,000,000 $998,150$1,002,069 2.375% $5,856 $46,719PURCHASED DURING THIS QUARTER$0 $0OUTSTANDING SECURITIES AT THE END OF THE QUARTER12,582,619 12,605,000 12,505,749 - - 12,554,400 50,333 403,492 MATURED DURING THIS QUARTER3133EG5Q4 FFCB NOTE 2/1/20172/1/2019$1,000,000 $1,000,000 $999,219 1.300% $1,140 $26,0003130AAS41 FHLB NOTE 3/24/20172/8/2019$999,812 $1,000,000 $998,782 1.280% $1,368 $24,057SECURITIES MATURED DURING THE QUARTER 1,999,812 2,000,000 1,998,001 - - 2,507 50,057 GRAND TOTAL 14,582,431 14,605,000 14,503,750 - - 12,554,400 52,840 453,549 INVESTMENT SECURITIES INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT INVESTMENT- G/L TOTAL 001-1172 GENERAL FUND OPERATING 2,294,835.42 002-1172 UTILITY FUND OPERATING 2,231,432.70 002-1178 CUSTOMER DEPOSITS 472,683.04 039-1557 THE RESERVE LIFT STATION 56,792.76 003-1121 INV-PERIMETER FEES 1,965,370.14 003-1307 INV-ROAD RECONSTRUCTION 323,845.40 005-1172 VOLUNTARY PARK FUND 750,000.00 012-1172 PARK LAND DEDICATION FUND 1,210,000.00 017-1172 DRAINAGE FUND OPERATING 200,000.00 024-1172 CEDC OPERATING 1,500,000.00 026-1172 TIF OPERATING 1,213,360.00 032-1519 CAPITAL EQUIPMENT RESERVE 364,300.00 034-1172 COLLEYVILLE TOMORROW - PER GENERAL LEDGER 12,582,619.46 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK O YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 005-1172 VOLUNTARY PARK 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 FFCB NOTE TREASURY NOTE FHLB NOTE FHLMC NOTE 42,858.00 42,947.00 42,976.00 42,992.00 43,587.00 43,692.00 43,721.00 43,740.00 0.980%1.110%1.130%1.170% 1.350%1.475%1.375%1.250% 3133EHHN6 3137EAEH8 313380FB8 3137EADM8 7,789.01 56,792.76 712,932.38 998,788.00 222,485.85 1,000,000.00 500,000.00 1,000,000.00 500,000.00 1,000,000.00 998,788.00 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK O YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 005-1172 VOLUNTARY PARK 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 FHLMC NOTE FHLB FFCB NOTE FFCB NOTE 43,021.00 43,034.00 43,045.00 43,077.00 43,740.00 43,749.00 43,775.00 43,790.00 1.250%1.260%1.280%1.420% 1.250%1.550%1.600%1.730% 3137EADM8 3130ACLS1 3133EHP98 3133EHV75 - 18,422.28 500,000.00 250,985.36 503,143.19 194,005.33 246,567.66 253,649.76 101,359.55 500,000.00 300,000.00 200,000.00 200,000.00 513,360.00 700,000.00 364,300.00 896,082.28 2,200,000.00 1,000,000.00 749,710.85 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK O YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 005-1172 VOLUNTARY PARK 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 FFCB NOTE FFCB NOTE FHLB NOTE FFCB NOTE 43,098.00 43,145.00 43,166.00 43,199.00 43,787.00 43,875.00 43,872.00 43,917.00 1.500%1.770%1.830%1.890% 1.100%2.070%2.125%2.300% 3133EGJ30 3133EJCN7 3130ADN32 3133EJHL6 255,571.93 1,000,000.00 37,833.62 1,001,429.87 951,092.86 32,110.05 250,000.00 710,000.00 1,238,774.84 1,000,000.00 997,833.62 1,001,429.87 DESCRIPTION BALANCE GENERAL FUND LOGIC POOL- OPERATING CASH 300,000.00 UTILITY FUND - CAPITAL PROJECTS LOGIC POOL- WATER IMPACT FEES 147,543.75 LOGIC-RES CASH-UTILITY LINE RE 1,274.01 LOGIC - WW IMPACT FEES 331,222.82 CAPITAL PROJECTS FUND LOGIC POOL-ROADS SA I CASH 23,531.24 LOGIC-CAPITAL PROJ/STREET RESU 798,231.37 DRAINAGE FUND LOGIC- I&S FUND/DRAINAGE 32,776.32 Subtotal 1,634,579.51 CEDC Logic Balance LOGIC POOL- OPERATING CASH 15.92 CEDC Logic Balance LOGIC POOL- OPERATING CASH 800,000.00 Total LOGIC Balance 2,434,595.43 INTEREST EARNED 15,550.24 CITY OF COLLEYVILLE - INVESTMENT POOLS LOGIC ACCOUNT ALLOCATION DESCRIPTION BALANCE GENERAL FUND TEXPOOL - OPERATING CASH 2,309,907.73 UTILITY FUND TEXPOOL - OPERATING CASH 2,135,444.25 UTILITY FUND - CAPITAL PROJECTS TEXPOOL - WW IMPACT FEES 690,767.74 TEXPOOL - WATER IMPACT FEE 2,331,575.60 TEXPOOL - OPERATING CASH 2,123,422.65 DEBT SERVICE FUND TEXPOOL - OPERATING CASH 35,373.21 DRAINAGE FUND TEXPOOL - OPERATING CASH 330,513.77 TIF FUND TEXPOOL - OPERATING CASH 10,829,436.59 CCCPD FUND TEXPOOL - OPERATING CASH 593,635.95 CAPITAL EQUIPMENT REPLACEMENT FUND TEXPOOL - OPERATING CASH 85,513.23 COLLEYVILLE TOMORROW FUND TEXPOOL - OPERATING CASH 1,742,307.14 PARKS TOMORROW FUND TEXPOOL - OPERATING CASH 797,112.18 STRATEGIC INITIATIVES FUND TEXPOOL - OPERATING CASH 387,142.20 DRAINAGE CAPITAL PROJECTS FUND TEXPOOL - OPERATING CASH 999,088.76 Total TexPool Balance 25,391,241.00 INTEREST EARNED 149,735.22 TEXPOOL ACCOUNT ALLOCATION DESCRIPTION BALANCE GENERAL FUND TEXAS CLASS 6,375,560.36 CAPITAL PROJECTS FUND TEXAS CLASS 4,720,915.79 UTILITY FUND - CAPITAL PROJECTS TEXAS CLASS 3,039,355.43 TIF FUND TEXAS CLASS 4,052,473.92 Total Texas CLASS Balance 18,188,305.50 INTEREST EARNED 91,333.51 TEXAS CLASS ACCOUNT ALLOCATION DESCRIPTION BALANCE GENERAL FUND TEXSTAR - OPERATING CASH 3,562,105.98 UTILITY FUND TEXSTAR - OPERATING CASH 2,821,390.18 VOLUNTARY PARK FUND TEXSTAR - OPERATING CASH 454,045.40 SESQUICENTINIAL FUND TEXSTAR - OPERATING CASH 3,255.94 VOLUNTARY LIBRARY FUND TEXSTAR - OPERATING CASH 338,139.67 PARK LAND DEDICATION FUND TEXSTAR - OPERATING CASH 248,677.98 POLICE ASSET FORFEITURE FUND TEXSTAR - OPERATING CASH 16,820.61 TREE PRESERVATION FUND TEXSTAR - OPERATING CASH 238,899.63 TIF FUND TEXSTAR - OPERATING CASH 1,006,909.13 KIDSVILLE MAINTENANCE FUND TEXSTAR - OPERATING CASH 3,861.80 COURT TECHNOLOGY FUND TEXSTAR - OPERATING CASH 5,998.89 COURT SECURITY FUND TEXSTAR - OPERATING CASH 33,941.40 ACCOUNT ALLOCATION TEXSTAR VEHICLE AND CAPITAL REPLACEMENT FUND TEXSTAR - OPERATING CASH 1,102,207.99 PUBLIC ART FUND TEXSTAR - OPERATING CASH 5,966.83 COLLEYVILLE TOMORROW FUND TEXSTAR - OPERATING CASH 147,687.10 JUVENILE CASE MANAGER FUND TEXSTAR - OPERATING CASH 11,595.01 HOTEL/MOTEL FUND FUND TEXSTAR - OPERATING CASH 277,623.88 DRAINAGE- CAPITAL PROJECTS FUND TEXSTAR - OPERATING CASH 293,428.52 Total TexSTAR Balance 10,572,555.94 INTEREST EARNED 20,787.90 NewsPerformance New Participants We would like to welcome the following entities who joined the LOGIC program in March: International Leadership of Texas Town of Horizon City City of Rhome Rockwall County MUD 7 Rockwall County MUD 9 Holiday Reminder In observance of Good Friday, LOGIC will be closed Friday, April 19, 2019. All ACH transactions initiated on Thursday, April 18th will settle on Monday, April 22nd. New LOGIC Advisory Board Members The LOGIC Governing Board has announced the addition of David Rastellini, Deputy Superintendent for Business & Finance with Northside ISD, and Eric Cannon, Chief Financial Ofﬁ cer with the City of Allen, to the LOGIC Advisory Board. Their experience and reputation within the public sector will be instrumental in providing valuable input and direction to the LOGIC program. LOGIC Newsletter March 2019 Economic Commentary The Fed kept rates unchanged at its March Federal Open Market Committee (FOMC) meeting, a move that was widely anticipated, but turned more dovish than expected by lowering its forecast for rate hikes from two to zero in 2019, and announcing its intention to end balance runoff by the end of September. The Fed still expects to raise rates one more time in 2020. The committee reiterated its intention to exercise patience in the face of muted inﬂ ation and global economic uncertainty. The problem with a global growth slowdown is the unknown of whether it ends in a soft landing or recession. With the central banks signaling their unwillingness to risk a monetary policy-led recession, the odds of a soft landing have clearly increased and the late-cycle recovery should extend. Although the data has softened, the U.S. economy is far from recession. The consumer, two-thirds of the U.S. economy, is in fantastic shape—enjoying a strong balance sheet, full employment and wage growth. Any de-escalation of trade tensions between the U.S. and China will only increase business conﬁ dence and spending. While we are certainly not expecting the array of global policy stimulus to lead to a GDP surge reminiscent of 2017 and 2018, we also cannot see the onset of recession. The central banks can comfortably sit with rates and balance sheets where they are—under cover of inﬂ ation that remains stubbornly below their targets. It does appear as though the global economy will glide toward a soft landing with growth roughly at trend, perhaps a little bit above or below. The outcome of the U.S.-China trade negotiations and Brexit will surely be important in determining which side of trend growth we will see. We kept the probability of Recession unchanged at 10%. We do believe that the central banks have extended the cycle, and we don’t see recession as a 2019 or early 2020 event. Geopolitics are a constant concern but, for now, cooler heads and rational thinking seem to be prevailing. U.S.-China trade negotiations remain at the top of our list of concerns. If the trade battle escalates, the impact on business spending and consumer sentiment will be globally signiﬁ cant, with the potential to lead to a dangerous stagﬂ ationary spiral. A hard Brexit would also be a challenge for the eurozone and global economy to absorb. Further out, we have the U.S. 2020 general election. As 2019 progresses, we are likely to hear from a growing chorus of campaigners with less market-friendly views … think an array of higher taxes and greater regulation. This information is an excerpt from an economic report dated March 2019 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 March 31, 2019 Current Invested Balance $7,337,871,011.97 Weighted Average Maturity (1)* 39 Days Weighted Average Maturity (2)* 70 Days Net Asset Value 1.000010 Total Number of Participants 595 Management Fee on Invested Balance 0.0975% Interest Distributed $17,337,245.95 Management Fee Collected $626,932.53 % of Portfolio Invested Beyond 1 Year 0.00% Standard & Poor’s Current Rating AAAm March Averages: Average Invested Balance $7,563,062,475.94 Average Monthly Yield, on a simple basis 2.6015% Average Weighted Average Maturity (1)* 39 Days Average Weighted Average Maturity (2)* 70 Days Distribution of Participants by Type As of March31, 2011 Portfolio by Maturity As of March31, 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 Mar 19 2.6015% $7,337,871,011.97 $7,337,944,552.70 1.000010 39 70 595 Feb 19 2.6090% 7,628,880,062.17 7,629,799,651.08 1.000120 43 74 590 Jan 19 2.5949% 7,520,879,084.28 7,521,195,255.96 1.000042 36 61 588 Dec 18 2.4805% 6,949,078,936.52 6,948,456,687.31 0.999870 38 62 586 Nov 18 2.4072% 6,560,982,375.72 6,560,576,218.42 0.999938 45 78 583 Oct 18 2.3320% 6,022,652,132.65 6,022,591,550.03 0.999989 46 87 581 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 Assets Book Value Market Value Uninvested Balance $ 454.58 $ 454.58 Accrual of Interest Income 5,958,326.18 5,958,326.18 Interest and Management Fees Payable (17,390,240.76) (17,390,240.76) Payable for Investment Purchased 0.00 0.00 Receivable for Investment Sold 0.00 0.00 Repurchase Agreements 415,945,999.96 415,945,999.96 Commercial Paper 6,683,726,499.23 6,683,795,050.24 Government Securities 249,629,972.78 249,634,962.50 Total $7,337,871,011.97 $ 7,337,944,552.70 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 March 31, 2019 Repurchase Agreements 5.66% 8 to 30 days 30.21% 1 to 7 days 27.18%31 to 90 days 33.38% Utility District 16.30% Other 7.56% School District 34.96% Health Care 1.51% County 9.92% Higher Education 2.69% City 27.06% Distribution of Participants by Type As of March 31, 2019 Portfolio by Type of Investment As of March 31, 2019 Portfolio by Maturity As of March 31, 2019 91 to 180 days 8.90% Commercial Paper 90.94% 180+ days 0.33% Treasuries 3.40% Mny Mkt Fund Daily Allocation LOGIC Invested Market Value WAM WAM Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)* 3/1/2019 2.6018% 0.000071282 $7,637,804,436.15 1.000019 40 72 3/2/2019 2.6018% 0.000071282 $7,637,804,436.15 1.000019 40 72 3/3/2019 2.6018% 0.000071282 $7,637,804,436.15 1.000019 40 72 3/4/2019 2.6013% 0.000071269 $7,622,215,799.19 1.000113 40 71 3/5/2019 2.5994% 0.000071217 $7,624,920,393.37 1.000114 40 72 3/6/2019 2.6041% 0.000071346 $7,588,586,421.70 1.000125 40 71 3/7/2019 2.6040% 0.000071342 $7,556,788,535.91 1.000124 40 71 3/8/2019 2.5983% 0.000071185 $7,620,730,757.87 1.000025 37 67 3/9/2019 2.5983% 0.000071185 $7,620,730,757.87 1.000025 37 67 3/10/2019 2.5983% 0.000071185 $7,620,730,757.87 1.000025 37 67 3/11/2019 2.5922% 0.000071019 $7,713,533,321.80 1.000118 36 66 3/12/2019 2.5975% 0.000071164 $7,651,329,190.45 1.000111 40 72 3/13/2019 2.5991% 0.000071208 $7,648,030,323.50 1.000107 39 70 3/14/2019 2.6054% 0.000071380 $7,649,562,103.12 1.000108 38 72 3/15/2019 2.6082% 0.000071457 $7,527,399,497.28 1.000023 37 71 3/16/2019 2.6082% 0.000071457 $7,527,399,497.28 1.000023 37 71 3/17/2019 2.6082% 0.000071457 $7,527,399,497.28 1.000023 37 71 3/18/2019 2.6071% 0.000071428 $7,538,251,155.03 1.000103 38 72 3/19/2019 2.6057% 0.000071388 $7,516,414,951.59 1.000104 37 71 3/20/2019 2.6029% 0.000071311 $7,575,893,273.08 1.000102 37 69 3/21/2019 2.5951% 0.000071098 $7,584,333,578.27 1.000097 41 70 3/22/2019 2.5962% 0.000071129 $7,564,212,949.92 1.000007 39 68 3/23/2019 2.5962% 0.000071129 $7,564,212,949.92 1.000007 39 68 3/24/2019 2.5962% 0.000071129 $7,564,212,949.92 1.000007 39 68 3/25/2019 2.5950% 0.000071097 $7,541,040,928.97 1.000089 42 72 3/26/2019 2.5966% 0.000071139 $7,539,114,799.62 1.000087 42 72 3/27/2019 2.5942% 0.000071075 $7,532,806,932.17 1.000090 41 71 3/28/2019 2.5964% 0.000071133 $7,508,059,086.86 1.000093 41 71 3/29/2019 2.6126% 0.000071577 $7,337,871,011.97 1.000010 39 70 3/30/2019 2.6126% 0.000071577 $7,337,871,011.97 1.000010 39 70 3/31/2019 2.6126% 0.000071577 $7,337,871,011.97 1.000010 39 70 Average 2.6015% 0.000071274 $7,563,062,475.94 39 70 Daily RatesDaily Summary for March 2019 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 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 90 Day T-BILL Rate LOGIC Rate ContactsFor more information, please contact LOGIC Participant Services 1201 Elm Street, Suite 3500 Dallas, Texas 75270 1-800-895-6442 www.logic.orgLOGIC BoardLOGIC Board Members Philip G. Roberson Arlington ISD Governing Board President Sandra Newby Tarrant Regional Water District Governing Board Vice President Greg Jordan City of Grapevine Governing Board Secretary Erik Felthous North Texas Municipal Water District Governing Board Treasurer David Rastellini Northside ISD Advisory Board Eric Cannon City of Allen/ Qualiﬁ ed Non-Participant Advisory Board The material provided to LOGIC from J.P. Morgan Asset Management, Inc., the investment manager of the LOGIC pool, is for informational and educational purposes only, as of the date of writing and may change at any time based on market or other conditions and may not come to pass. While we believe the information presented is reliable, we cannot guarantee its accuracy. HilltopSecurities is a wholly owned subsidiary of Hilltop Holdings, Inc. (NYSE: HTH) located at 1201 Elm Street, Suite 3500, Dallas, Texas 75270, (214) 859-1800. Past performance is no guarantee of future results. Investment Management Services are offered through J.P. Morgan Asset Management Inc. and/or its afﬁ liates. Marketing and Enrollment duties are offered through HilltopSecurities and/or its afﬁ liates. HilltopSecurities and J.P. Morgan Asset Management Inc. are separate entities. Monthly Newsletter — March 2019 For more information about TexSTAR, please visit our web site at www.texstar.org. Performance As of March 31, 2019 Current Invested Balance $8,378,300,782.34 Weighted Average Maturity (1) 33 Days Weighted Average Maturity (2) 108 Days Net Asset Value 0.999968 Total Number of Participants 893 Management Fee on Invested Balance 0.06%* Interest Distributed $18,212,816.31 Management Fee Collected $442,241.97 % of Portfolio Invested Beyond 1 Year 9.60% Standard & Poor’s Current Rating AAAm Rates reflect historical information and are not an indication of future performance. March Averages Average Invested Balance $8,678,064,222.85 Average Monthly Yield, on a simple basis 2.4112% Average Weighted Average Maturity (1)* 41 Days Average Weighted Average Maturity (2)* 106 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 Fed kept rates unchanged at its March Federal Open Market Committee (FOMC) meeting, a move that was widely anticipated, but turned more dovish than expected by lowering its forecast for rate hikes from two to zero in 2019, and announcing its intention to end balance runoff by the end of September. The Fed still expects to raise rates one more time in 2020. The committee reiterated its intention to exercise patience in the face of muted inﬂ ation and global economic uncertainty. The problem with a global growth slowdown is the unknown of whether it ends in a soft landing or recession. With the central banks signaling their unwillingness to risk a monetary policy-led recession, the odds of a soft landing have clearly increased and the late-cycle recovery should extend. Although the data has softened, the U.S. economy is far from recession. The consumer, two-thirds of the U.S. economy, is in fantastic shape—enjoying a strong balance sheet, full employment and wage growth. Any de-escalation of trade tensions between the U.S. and China will only increase business conﬁ dence and spending. While we are certainly not expecting the array of global policy stimulus to lead to a GDP surge reminiscent of 2017 and 2018, we also cannot see the onset of recession. The central banks can comfortably sit with rates and balance sheets where they are—under cover of inﬂ ation that remains stubbornly below their targets. It does appear as though the global economy will glide toward a soft landing with growth roughly at trend, perhaps a little bit above or below. The outcome of the U.S.-China trade negotiations and Brexit will surely be important in determining which side of trend growth we will see. We kept the probability of Recession unchanged at 10%. We do believe that the central banks have extended the cycle, and we don’t see recession as a 2019 or early 2020 event. Geopolitics are a constant concern but, for now, cooler heads and rational thinking seem to be prevailing. U.S.-China trade negotiations remain at the top of our list of concerns. If the trade battle escalates, the impact on business spending and consumer sentiment will be globally signiﬁ cant, with the potential to lead to a dangerous stagﬂ ationary spiral. A hard Brexit would also be a challenge for the eurozone and global economy to absorb. Further out, we have the U.S. 2020 general election. As 2019 progresses, we are likely to hear from a growing chorus of campaigners with less market-friendly views … think an array of higher taxes and greater regulation. This information is an excerpt from an economic report dated March 2019 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 March: City of Rhome Woodridge MUD Holiday Reminders In observance of Good Friday, TexSTAR will be closed Friday, April 19, 2019. All ACH transactions initiated on Thursday, April 18th will settle on Monday, April 22nd. Notiﬁ cation of any early transaction deadlines on the business day preceding this holiday will be sent by email to the primary contact on ﬁ le for all TexSTAR participants. Please plan accordingly for your liquidity needs. Distribution of Participants by Type As of March 31, 2019 Portfolio by Type of Investment As of March 31, 2019 Book Value Market Value Uninvested Balance $ 120,750,223.41 $ 120,750,223.41 Accrual of Interest Income 11,093,306.97 11,093,306.97 Interest and Management Fees Payable (18,295,726.74) (18,295,726.74) Payable for Investment Purchased 0.00 0.00 Repurchase Agreement 1,151,457,999.91 1,151,457,999.91 Government Securities 7,113,294,978.79 7,113,027,014.35 Total $ 8,378,300,782.34 $ 8,378,032,817.90 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 March 31, 2019 Average Book Market Net Number of Month Rate Value Value Asset Value WAM (1)* WAM (2)* Participants Mar 19 2.4112% $8,378,300,782.34 $8,378,032,817.90 0.999968 41 106 893 Feb 19 2.4001% 9,198,012,187.60 9,197,689,206.82 0.999964 45 99 891 Jan 19 2.3937% 8,624,044,987.80 8,623,938,284.28 0.999987 37 82 890 Dec 18 2.3069% 7,738,483,374.11 7,738,245,287.60 0.999940 40 95 888 Nov 18 2.2176% 6,683,233,268.87 6,682,898,473.43 0.999949 41 102 886 Oct 18 2.1615% 6,581,942,899.40 6,581,269,831.00 0.999897 41 101 884 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 Agencies 59.20%1 to 7 days 24.00% 31 to 90 days 39.46% 8 to 30 days 29.96% City 26.10% Health Care 3.02% County 6.16% Other 7.84% Historical Program Information Portfolio by Maturity As of March 31, 2019 Repurchase Agreements 13.93% Treasuries 26.87% School District 30.68% Higher Education 2.80% Utility District 23.40% 91 to 180 days 6.58% 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 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)* 3/1/2019 2.4075% 0.000065959 $8,836,094,968.15 0.999972 48 112 3/2/2019 2.4075% 0.000065959 $8,836,094,968.15 0.999972 48 112 3/3/2019 2.4075% 0.000065959 $8,836,094,968.15 0.999972 48 112 3/4/2019 2.3983% 0.000065707 $8,780,550,260.91 0.999955 48 112 3/5/2019 2.3979% 0.000065696 $8,786,016,725.29 0.999953 47 111 3/6/2019 2.3980% 0.000065699 $8,759,174,162.11 0.999955 44 110 3/7/2019 2.4038% 0.000065857 $8,705,228,113.27 0.999966 44 110 3/8/2019 2.4014% 0.000065792 $8,819,730,690.32 0.999965 42 105 3/9/2019 2.4014% 0.000065792 $8,819,730,690.32 0.999965 42 105 3/10/2019 2.4014% 0.000065792 $8,819,730,690.32 0.999965 42 105 3/11/2019 2.4012% 0.000065786 $8,802,412,883.97 0.999966 41 105 3/12/2019 2.4043% 0.000065871 $8,774,804,368.61 0.999965 42 108 3/13/2019 2.4079% 0.000065969 $8,765,515,519.19 0.999958 44 107 3/14/2019 2.4136% 0.000066125 $8,762,395,036.12 0.999960 43 106 3/15/2019 2.4195% 0.000066288 $8,706,680,762.00 0.999959 41 105 3/16/2019 2.4195% 0.000066288 $8,706,680,762.00 0.999959 41 105 3/17/2019 2.4195% 0.000066288 $8,706,680,762.00 0.999959 41 105 3/18/2019 2.4135% 0.000066123 $8,689,346,599.11 0.999962 40 104 3/19/2019 2.4109% 0.000066053 $8,704,550,663.03 0.999959 41 106 3/20/2019 2.4224% 0.000066366 $8,675,903,813.08 0.999953 40 105 3/21/2019 2.4170% 0.000066220 $8,663,450,493.61 0.999952 39 104 3/22/2019 2.4100% 0.000066027 $8,615,082,184.80 0.999933 37 102 3/23/2019 2.4100% 0.000066027 $8,615,082,184.80 0.999933 37 102 3/24/2019 2.4100% 0.000066027 $8,615,082,184.80 0.999933 37 102 3/25/2019 2.4053% 0.000065899 $8,600,853,859.10 0.999936 37 102 3/26/2019 2.4081% 0.000065976 $8,557,950,771.47 0.999943 36 101 3/27/2019 2.4098% 0.000066021 $8,484,628,983.46 0.999958 35 101 3/28/2019 2.4229% 0.000066382 $8,439,540,493.10 0.999967 35 110 3/29/2019 2.4322% 0.000066636 $8,378,300,782.34 0.999968 33 108 3/30/2019 2.4322% 0.000066636 $8,378,300,782.34 0.999968 33 108 3/31/2019 2.4322% 0.000066636 $8,378,300,782.34 0.999968 33 108 Average 2.4112% 0.000066060 $8,678,064,222.85 41 106 Daily Summary for March 2019 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 Sandra Newby Tarrant Regional Water District/Non-Participant Advisory Board Ron Whitehead Qualiﬁ ed Non-Participant Advisory Board TexSTAR Participant Services 1201 Elm Street, Suite 3500 Dallas, TX 75270 1-800-839-7827 The material provided to TexSTAR from J.P. Morgan Asset Management, Inc., the investment manager of the TexSTAR pool, is for informational and educational purposes only, as of the date of writing and may change at any time based on market or other conditions and may not come to pass. While we believe the information presented is reliable, we cannot guarantee its accuracy.HilltopSecurities is a wholly owned subsidiary of Hilltop Holdings, Inc. (NYSE: HTH) located at 1201 Elm Street, Suite 3500, Dallas, Texas 75270, (214) 859-1800. Past performance is no guarantee of future results. Investment Management Services are offered through J.P. Morgan Asset Management Inc. and/or its afﬁ liates. Marketing and Enrollment duties are offered through HilltopSecurities and/ or its afﬁ liates. HilltopSecurities and J.P. Morgan Asset Management Inc. are separate entities. Print Texas CLASS Portfolio Characteristics The following information is provided in accordance with Texas State Statute 2256.0016. As of March 31, 2019: 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) 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 Jan-19 2.42% $495,553,849 $495,581,916 $505,254,580 $505,282,648 1.00 50 90 Feb-19 2.41% $535,416,133 $535,426,097 $535,128,814 $535,138,778 1.00 40 72 Month End Average Yield** Month Ending Assets Share Balance Market Value Amortized Cost NAV WAM (Reset)*** WAM (Final)*** Mar-19 2.43% $578,828,851 $578,861,656 $578,556,768 $578,589,573 1.00 52 78 **Average monthly yield ***As of the end of the last day of the month Fund Highlights as of March 31, 2019 (Unaudited) For the month of March 2019, the Program Administrator accrued fees of $875,858.24 and had average shares outstanding of $10,791,694,047.06 for Texas CLASS. For Texas CLASS Government, the Program Administrator accrued fees of $9914.63 and had average shares outstanding of $562,506,459.94. 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 Eighth Amended and Restated Trust Agreement. The Program Administrator reserves the right to abate fees listed in the Eighth Amended and Restated Trust Agreement. The monthly fee is the sum of all daily fee accruals for the month of March. The fees are paid monthly upon notification to the custodian bank. As of March 31, 2019, the fee for Texas CLASS was 10 basis points and the fee for Texas CLASS Government was 2 basis points. •Both funds are rated ‘AAAm’ by S&P Global Ratings.•Net Asset Value for both funds from March 1 to March 31, 2019 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 748.•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.•The Eighth Amended and Restated Trust Agreement was adopted by the Board of Trustees on April 8, 2019. You can access your copy of the Eighth Amended and Restated Trust Agreement by clicking here (https://www.texasclass.com/wp- content/uploads/2019/04/Eighth-Amended-and-Restated-Texas-CLASS-Trust-Agreement-Website.pdf). To view the current members of the Texas CLASS Board of Trustees and Advisory Board, please click here(https://www.texasclass.com/boards/). Prior Months' Portfolio Characteristics February 28, 2019 View (https://www.texasclass.com/february-2019-portfolio-characteristics/) January 31, 2019 View (https://www.texasclass.com/january-2019-portfolio-characteristics/) December 31, 2018View(https://www.texasclass.com/december-2018-portfolio-characteristics/) November 30, 2018 View (https://www.texasclass.com/november-2018-portfolio-characteristics/) October 31, 2018View(https://www.texasclass.com/october-2018-portfolio-characteristics/) September 30, 2018View(https://www.texasclass.com/september-2018-portfolio-characteristics/) 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. (continued page 6) ANNOUNCEMENTS Economic and Market Commentary: Stopping the pendulum’s swing March 1, 2019 “Patience.” Federal Reserve Chair Jerome Powell has been using this word lately as if trying to quiet kids in the back seat of a car who are repeatedly asking, “Are we there yet?” But his mantra is really more about him than investors—an attempt to check the market volatility he largely created by vacillating in the fourth quarter of 2018. While inconsistency can spook investors, swinging like a pendulum from hawkish to dovish is actually worse because it suggests a reversal is coming. We think Powell wants to let time pass to calm the markets before making the next hike, which we still think will come later in 2019. Our reasoning is that economic and political uncertainties likely will resolve positively. Don’t let the fourth-quarter slowdown in GDP growth fool you. Consumer spending was still solid, and business investment accelerated. This year, housing is showing signs of improvement and the job market remains robust, so much so it has the potential to (fi nally) push up wages and become infl ationary. With trade talks with China proceeding well, recession fears receding and Brexit soon to be behind us one way or another, upside surprises are possible, if not probable. 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 (3/19) We welcome the following entities who joined TexPool in February 2019: TexPool Carroll Water Supply Corporation Williamson County MUD 21 Denton County MHMR Center Caldwell Hays ESD 1 TexPool Prime Denton County MHMR Center Upcoming Events Mar 5, 2019 - Mar 6, 2019, San Antonio TASBO Annual 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: March 2019 Performance as of February 28, 2019 TexPool TexPool Prime Current Invested Balance $23,860,989,392.51 $7,143,234,247.23 Weighted Average Maturity** 24 22 Weighted Average Life** 76 49 Net Asset Value 0.99995 1.00013 Total Number of Participants 2531 370 Management Fee on Invested Balance 0.0473% 0.0638% Interest Distributed $44,376,661.47 $14,489,024.33 Management Fee Collected $790,558.85 $331,032.20 Standard & Poor's Current Rating AAAm AAAm Month Averages Average Invested Balance $24,157,750,538.89 $7,344,438,185.11 Average Monthly Rate* 2.40% 2.59% Average Weighted Average Maturity** 26 25 Average Weighted Average Life** 74 52 *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 3G35884-24.indd 3 3/5/2019 10:34:48 AM3/5/2019 10:34:48 AM Pg: 2 Portfolio by Maturity (%) As of February 28, 2019 ■ 1-7 days 59.6 ■ 8-30 days 16.4 ■ 31-90 days 17.4 ■ 91-180 days 4.3 ■ 181+ days 2.3 Portfolio by Type of Investment (%) As of February 28, 2019 ■ Agencies 41.0 ■ Repurchase Agreements 36.7 ■ Treasurys 19.1 ■ Money Market Funds 3.2 Portfolio Asset Summary as of February 28, 2019 Book Value Market Value Uninvested Balance -$1,342,551.79 -$1,342,551.79 Receivable for Investments Sold 0.00 0.00 Accrual of Interest Income 22,017,617.53 22,017,617.53 Interest and Management Fees Payable -44,376,636.76 -44,376,636.76 Payable for Investments Purchased -780,120,455.54 -780,120,455.54 Accrued Expenses & Taxes -28,250.87 -28,250.87 Repurchase Agreements 9,054,345,000.00 9,054,345,000.00 Mutual Fund Investments 788,218,000.00 788,218,000.00 Government Securities 10,101,277,892.91 10,100,382,997.18 U.S. Treasury Infl ation Protected Securities 793,995,000.55 793,900,880.81 US Treasury Bills 2,788,542,111.06 2,788,406,004.65 US Treasury Notes 1,138,461,665.42 1,138,339,900.77 Total $23,860,989,392.51 $23,859,742,505.98 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 591 $8,686,440,752.46 Higher Education 58 $1,104,830,522.60 Healthcare 84 $1,050,257,853.78 Utility District 803 $2,854,432,601.09 City 467 $5,418,089,150.65 County 186 $2,523,909,855.17 Other 342 $2,223,734,739.37 **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: March 2019 G35884-24.indd 4G35884-24.indd 4 3/5/2019 10:34:51 AM3/5/2019 10:34:51 AM Pg: 3 Daily Summary Date Money Mkt. Fund Equiv. (SEC Std.) Dividend Factor TexPool Invested Balance NAV WAM Days WAL Days 2/1 2.4082% 0.000065977 $23,948,747,757.79 0.99996 24 70 2/2 2.4082% 0.000065977 $23,948,747,757.79 0.99996 24 70 2/3 2.4082% 0.000065977 $23,948,747,757.79 0.99996 24 70 2/4 2.3759% 0.000065094 $23,740,916,332.48 0.99996 24 70 2/5 2.3849% 0.000065339 $23,976,902,773.37 0.99996 27 72 2/6 2.3796% 0.000065195 $24,135,161,623.70 0.99996 26 71 2/7 2.3801% 0.000065208 $24,476,824,963.97 0.99996 26 69 2/8 2.3805% 0.000065220 $24,770,779,096.70 0.99997 26 69 2/9 2.3805% 0.000065220 $24,770,779,096.70 0.99997 26 69 2/10 2.3805% 0.000065220 $24,770,779,096.70 0.99997 26 69 2/11 2.3939% 0.000065587 $24,834,743,226.34 0.99996 27 72 2/12 2.3918% 0.000065529 $24,751,418,356.52 0.99996 27 72 2/13 2.3904% 0.000065490 $24,621,261,826.82 0.99996 28 72 2/14 2.3923% 0.000065542 $24,172,991,401.27 0.99996 27 74 2/15 2.4076% 0.000065963 $24,058,369,907.69 0.99996 28 76 2/16 2.4076% 0.000065963 $24,058,369,907.69 0.99996 28 76 2/17 2.4076% 0.000065963 $24,058,369,907.69 0.99996 28 76 2/18 2.4076% 0.000065963 $24,058,369,907.69 0.99996 28 76 2/19 2.4053% 0.000065899 $24,074,105,949.97 0.99997 25 73 2/20 2.3966% 0.000065659 $24,105,886,178.38 0.99996 25 77 2/21 2.3955% 0.000065630 $23,968,259,569.82 0.99996 25 77 2/22 2.3976% 0.000065689 $23,801,470,945.64 0.99996 25 78 2/23 2.3976% 0.000065689 $23,801,470,945.64 0.99996 25 78 2/24 2.3976% 0.000065689 $23,801,470,945.64 0.99996 25 78 2/25 2.3938% 0.000065584 $23,765,715,006.98 0.99996 23 76 2/26 2.3949% 0.000065614 $24,097,702,404.21 0.99996 23 75 2/27 2.3972% 0.000065677 $24,037,663,051.53 0.99996 23 76 2/28 2.4597% 0.000067390 $23,860,989,392.51 0.99995 24 76 Average: 2.3972% 0.000065677 $24,157,750,538.89 .99996 26 74 G35884-24.indd 5G35884-24.indd 5 3/5/2019 10:34:53 AM3/5/2019 10:34:53 AM Not that we expect any surprises at the Federal Open Market Committee meeting this month. Powell already has mentioned that clarity on the future of the balance sheet runoff is forthcoming, so that will probably be announced. That’s a central part of policymakers’ desire to have the federal funds rate be the only policy tool the market considers. (It almost goes without saying that target range is not expected to move from 2.25% to 2.5% at this meeting.) Cash, then, is in a good place. If volatility returns, liquidity products stand to again reap haven-seeking money. If the economy fi rms, a potential hike likely would improve return. Our position is that the fl at money market yield curve is bound to steepen, While the suspension of the debt ceiling ends this month, the Treasury Department has the means to operate until July and, if tax receipts are strong, these extraordinary measures could last until autumn, so no worries at this time. Over the month of February, 1-, 3- and 6-month London interbank off ered rates (Libor) slipped, ending at 2.49%, 2.63% and 2.69, respectively. The weighted average maturity (WAM) of TexPool in February was 26 days, slightly higher than that of TexPool Prime which was 25 days. 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 2.1% 2.2% 2.3% 2.4% 2.5% 2.6% 2.7% 2.8% 2/282/151/311/1512/3112/15 G35884-24.indd 2G35884-24.indd 2 3/5/2019 10:34:47 AM3/5/2019 10:34:47 AM ECONOMIC HIGHLIGHTS Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 27, 2019 Page 1 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 27, 2019 Page 2 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 27, 2019 Page 3 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 27, 2019 Page 4 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 25, 2019 Page 1 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 25, 2019 Page 2 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 25, 2019 Page 3 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 25, 2019 Page 4 of 4 Insights for Investors (https://www.texasclass.com/insights-for-investors/) Filter by Category March 2019 Economic Review Texas CLASS Trading Desk (https://www.texasclass.com/author/texas-class-trading-desk/)March 13, 2019 In Like a Lion; Out Like a Lamb? While growth has slowed, the U.S. economy is not in the lion’s den. The U.S. economy cooled with only 2.6% GDP growth in Q4 2018, compared to 3.4% growth in Q3 2018, as the Federal Reserve takes a “patient” approach to interest rates. GDP remains above the average pace of expansion and still supports growth throughout 2019, just at lower levels than the year prior. Trade tensions between the U.S. and China continue to roar but could be resolved before the end of the month and avoid calamb-ity. Despite the President’s goal of reining in the U.S. trade deficit, the deficit continues to grow in light of tariffs as U.S. imports remain above exports according to the March 6 Commerce Department’s report. Among the changes the administration is hoping China will make are an increased number of purchases of U.S. goods as well as greater access to China’s markets for U.S. companies. The February employment report released on March 8 stated that only 20,000 new jobs were created in February compared to 311,000 created in January. But low job growth supports continued upward pressure on wages, upholding the expectation for continued solid consumer spending. The unemployment rate declined to 3.8%, lowered in part by previously furloughed federal workers now back on the job. The lower unemployment rate gives the Federal Open Market Committee (FOMC) another reason to be patient about further rate hikes. On the monetary policy front, the FOMC will vote on the Fed Funds rate target range on March 20,2019, and the expectation is that the range will remain unchanged at 2.25%-2.50% partly due to little inflationary pressure. The inability of the UK Parliament to agree on a Brexit deal and the volatility in the markets continue to be clouds hanging over the global economy. Weaker growth expectations in the U.S., the Eurozone, and China are likely to lead to a slower pace of monetary policy tightening; however, the timing of the next recession in the world’s largest economies remains much longer than two shakes of a lamb’s tail. Treasury Yields Maturity 3/7/19 2/6/193-Month 2.401%2.412%6-Month 2.517%2.494%1-Year 2.520%2.549%2-Year 2.473%2.524%3-Year 2.444%2.497%5-Year 2.440%2.503%10-Year 2.639%2.695%30-Year 3.026%3.033%Agency Yields Maturity 3/7/19 2/6/193-Month 2.402%2.384%6-Month 2.486%2.472%1-Year 2.541%2.540%2-Year 2.501%2.558%3-Year 2.492%2.562%5-Year 2.562%2.658%Commercial Paper Yields (A-1/P-1) Maturity 3/7/19 2/6/191-Month 2.440%2.460%3-Month 2.560%2.630%6-Month 2.620%2.710%