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HomeMy WebLinkAboutAudit Committee-Agenda Packets-05/01/2018City 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, May 1, 2018 3:30 p.m. City Manager’s Conference Room Third Floor – City Hall 1.CALL TO ORDER 2.APPROVAL OF MINUTES February 20, 2018 3.REGULAR AGENDA ITEMS 3a Discussion of the Request for Proposal and selection process for external auditing services for the Fiscal Years ending September 30, 2018 through September 30, 2022 3b Interview of audit firms submitting proposals in response to the City’s request for proposals for an external audit firm 3c Opening the sealed cost portion of the audit proposals and consider a recommendation to City Council for the selection of an audit firm 4.REPORTS Quarterly Investment Report for the quarter ended March 31, 2018 Update on future discussion items and initiatives 5.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, April 27, 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 Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, February 20, 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 February 20, 2018, at 4:00 p.m. ROLL CALL: Committee members Bobby Lindamood, George Dodson, Kathy Wheat, and Susan Mathisen were present. Also Present: Chief Financial Officer Shereen Gendy, Accounting Manager Karen Hines, Assistant City Manager Adrienne Lothery, and City Secretary Christine Loven were also present. 2. APPROVAL OF MINUTES September 5, 2017 Committee member Mathisen made a motion to approve the November 21, 2017, meeting minutes. Committee member Lindamood seconded. All approved by acclamation. 3. PRESENTATIONS AND DISCUSSION 3a Discussion of the draft Fiscal Year 2017 (FY17) Audit and SAS 114 Letter John Manning, Pattillo, Brown and Hill, L.L.P., Manager for the Government Audit Division, the City’s audit firm, discussed the draft Fiscal Year 2017 (FY17) Audit and SAS 114 Letter process and gave an overall review and recap of the Comprehensive Annual Financial Report (CAFR). Mr. Manning discussed the new GASB standards and answered questions of the committee. Mr. Manning thanked CFO Shereen Gendy, Accounting Manager Karen Hines, and Assistant City Manager Adrienne Lothery for all their work and thorough review of the CAFR. Committee member Mathisen stated she felt the audit was well done and adequately reflected the goals of the City Council. Committee member Wheat stated she is not a financial person, and was able to read and comprehend the material and thanked Mr. Manning and staff for same. City of Colleyville Page 2 Audit Committee Agenda February 20, 2018 Committee members Lindamood and Dodson also expressed their appreciation to Mr. Manning, the committee members, and staff. 3b Quarterly Investment Report for the quarter ended December 31, 2017 Chief Financial Officer Shereen Gendy presented this item and provided an overview to the committee. She also discussed the intent to diversify the investment portfolio through investing in new government investment pools. Mr. Manning thanked everyone for their time. 4. ADJOURNMENT The Audit Committee adjourned at 4:58 p.m. APPROVED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS ON THIS THE 1ST DAY OF MAY 2018. Minutes taken and prepared by: Christine Loven, TRMC City Secretary City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3a Agenda Date 05/01/2018 Number Type Presentation and Discussion Department Finance Title Discussion of the Request for Proposal and selection process for external auditing services for the Fiscal Years ending September 30, 2018 through September 30, 2022 Explanation As the five year contract for external audit services with Pattillo, Brown and Hill concluded with the audit for the Fiscal Year ended September 30, 2017, it was necessary to begin the Request for Proposal (RFP) process for external audit services. The purpose of this item is to discuss the attached RFP, the selection process, and answer questions from the Audit Committee. The attached RFP was advertised in the newspaper on April 1, 2018 and April 8, 2017 and was posted on the City's website on April 2, 2018. Responses were due on April 16, 2018. Attachments 1. Final Audit Request for Proposal- 2018 Page 1 of 30 ` Proposer’s Initials _________ Request for Proposals FOR PROFESSIONAL AUDITING SERVICES CITY OF COLLEYVILLE 100 MAIN STREET COLLEYVILLE, TX 76034 SUBMITTAL DEADLINE: Monday April 16, 2018 11:00 A.M. (CST) Page 2 of 30 ` Proposer’s Initials _________ CITY OF COLLEYVILLE, TEXAS REQUEST FOR PROPOSALS TABLE OF CONTENTS I. INTRODUCTION A. General Information B. Term of Engagement II. DESCRIPTION OF THE CITY OF COLLEYVILLE A. Background Information B. Fund Structure C. Budgetary Basis of Accounting D. Federal and State Financial Assistance E. Pension Plans F. Component Units G. Joint Ventures H. Magnitude of Finance Operations I. Computer Systems J. Internal Audit Function III. NATURE OF SERVICES REQUIRED A. General B. Scope of Work to be Performed C. Auditing Standards to be Followed D. Reports to be Issued E. Special Considerations F. Schedule for the 2018 Fiscal Year Audit IV. PROPOSAL REQUIREMENT A. General Requirements 1. Pre-proposal Conference 2. Inquiries 3. Submission of Proposals B. Submittal Timeline 1. Proposal Calendar 2. Notification and Contract Dates Page 3 of 30 ` Proposer’s Initials _________ C. Technical Proposal 1. General Requirements 2. Independence 3. License to Practice 4. Firm’s Qualifications and Experience 5. Partner, Supervisory, and Staff Qualifications and Experience 6. Audit Engagements with Other Governmental Entities 7. Specific Audit Approach D. Sealed Dollar Cost Bid 1. Total All-inclusive Maximum Price 2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each 3. Rates for Additional Professional Services 4. Progress Payments E. Assistance to be Provided to the Auditor 1. Finance Department 2. Statements and Schedules to be Prepared by the City of Colleyville Staff 3. Work Area, Telephones, Photocopying, and FAX Machines 4. Report Preparation V. WITHDRAWAL/MODIFICATION OF PROPOSALS VI. EVALUATION PROCESS A. Review of Proposals B. Evaluation Criteria C. Oral Presentations D. Final Selection E. Right to Reject Proposals F. Award of Contract VII. GENERAL TERMS AND CONDITIONS Page 4 of 30 ` Proposer’s Initials _________ APPENDICES A. PROPOSER GUARANTEES B. PROPOSER WARRANTIES C. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE YEAR ENDED SEPTEMBER, 30, 2018 FINANCIAL STATEMENTS D. CITY FUNDS Page 5 of 30 ` Proposer’s Initials _________ REQUEST FOR PROPOSAL FOR AUDITING SERVICES I. INTRODUCTION A. General Information The City of Colleyville is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2018, with the option of auditing its financial statements for four subsequent years. These audits are to be performed in accordance with generally accepted auditing standards. B. Term of Engagement A five year contract is contemplated, subject to the annual review and recommendation of the Audit Committee, the satisfactory negotiation of terms (including a price acceptable to both the City of Colleyville and the selected firm), the concurrence of the Colleyville City Council and the availability of an appropriation. II. DESCRIPTION OF THE CITY OF COLLEYVILLE A. Background Information The City of Colleyville serves an area of 13 square miles with an estimated population of 24,630. The City's fiscal year begins on October 1st and ends on September 30th. The City provides the following services: Police, Fire, Streets, Parks and Recreation, Community Development, Engineering, Library, Community Center and Utility service. In addition to the aforementioned departments, the City has a general governmental function comprised of City Manager's Office, City Council/Secretary, Finance, and Municipal Court. The City has 206 full-time employees and an annual payroll of $16.3 million. B. Fund Structure The City’s accounting records are maintained in accordance with accounting principles generally accepted in the United States as promulgated by the Government Accounting Standards Board. Accordingly, the City maintains general, special revenue, debt service and capital projects governmental fund types; enterprise funds and fiduciary funds. For fiscal year ended September 30, 2017, the City reported the following major governmental funds: General Fund, Debt Service Fund, Capital Projects Funds, Special Revenue Funds, Enterprise Funds and Fiduciary Funds. Page 6 of 30 ` Proposer’s Initials _________ C. Budgetary Basis of Accounting The City Manager submits to the City Council a proposed operating budget for the fiscal year beginning October 1. The adopted operating budget is legally enacted through passage of an ordinance and represents the proposed fund appropriations. Unencumbered appropriations lapse at the end of the year. Budgeted amounts may be transferred between accounts or divisions by the City Manager on a limited basis. The budget, as well as all revenues, appropriations, and encumbrances are recorded in the accounting records. Approved Fiscal Year 2018 expenditure budgets for the City's major operating and debt service funds are as follows: General Fund $ 23,694,811 Utility Fund 15,526,542 Drainage Fund 1,481,362 Debt Service Fund 1,979,412 D. Federal and State Financial Assistance During the fiscal year to be audited, the City of Colleyville may receive financial assistance from the federal government in excess of $750,000. There is the possibility in future years that this may occur. E. Pension Plans The City of Colleyville participates in the Texas Municipal Retirement System, that is a joint contributory, defined benefit, multiple-employer agent type of pension plan. F. Component Units There are three component units in the City of Colleyville's financial statements: Blended Component Unit - Crime and Control and Prevention District Blended Component Unit - Colleyville Economic Development Corporation Discretely Presented Component Unit - Colleyville Tax Increment Financing Reinvestment Zone Number One and One A G. Joint Ventures The City of Colleyville does not participate in joint ventures. Page 7 of 30 ` Proposer’s Initials _________ H. Magnitude of Finance Operations The Finance Department is headed by Shereen Gendy, Chief Financial Officer and consists of three other employees: Karen Hines, Accounting Manager, Mushtaq Ali, Accountant and Sue Kralich, Accounting Clerk. I. Computer Systems Hardware: During the audit period, financial software ran on the following: Munis - Windows Server 2008 R2 in a VMWARE virtual environment. The Hardware is an HP blade c3000 Chassis with 4 BL460 blades Software: The City's financial software package is the Tyler Technologies software, Munis, and following applications are in use: general ledger, cash receipts, accounts payable, project ledger, purchase order and utility billing. J. Internal Audit Function Internal audit with the support of and in conjunction with city management examines and evaluates the adequacy and effectiveness of the City’s system of internal control and the quality of performance in carrying out assigned responsibilities. In order to mitigate the risk of fraud, the finance staff continuously assesses the internal controls in place to identify areas for improvements, conducts various audits including accounts payable invoices, purchase order compliance and cash handling audits, and educates the frontline collection employees on proper revenue collection, handling, and depositing techniques. The internal audits performed have been essential in detecting and correcting internal control deficiencies before they result in significant financial losses. III. NATURE OF SERVICES REQUIRED A. General The City of Colleyville is soliciting the services of qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2018 with the option to audit the City of Colleyville's financial statements for each of the four subsequent fiscal years. These audits are to be performed in accordance with the provisions contained in this request for proposals. Please note the FY 2017 City of Colleyville CAFR can be found at the following address on the City’s website: https://www.colleyville.com/financial-transparency.html The Fiscal Year 2018 budget is also available for viewing on the website, using that link. B. Scope of Work to be Performed The City of Colleyville desires the auditor to express an opinion on the fair Page 8 of 30 ` Proposer’s Initials _________ presentation of its governmental activities, its business-type activities, its aggregate discretely presented component unit, each of its major funds, and its aggregate remaining fund information in conformity with generally accepted accounting principles. The auditor is not required to audit the supporting schedules contained in the comprehensive annual financial report. However, the auditor is to provide an "in-relation to” opinion on the supporting schedules based upon the auditing procedures applied during the audit of the financial statements and the combining and individual fund financial statements and schedules. The auditor is not required to audit the statistical section of the report. The auditor’s assistance and consultation will be required in implementing new GASB and FASB statements at a date to be determined by the City, even if prior to the required effective date. Additionally, the auditor will be required to review the City’s compliance with requirements of the State of Texas Public Investment Funds Act. C. Auditing Standards to be Followed To meet the minimum requirements of this request for proposals, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants. D. Reports to be Issued 1. A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. 2. A report to management containing any significant deficiencies and/or material weaknesses found during the audit as defined by Statement on Auditing Standards 112. 3. Prepare the following portions of the Comprehensive Annual Financial Report: • Table of Contents • Basic Financial Statements o Statement of Net Position (Primary Government and Component Unit) o Statement of Activities (Primary Government and Component Unit) • Fund Financial Statements o Balance Sheet (Governmental Funds) o Statement of Revenues, Expenditures and Changes in Fund Balance (Governmental Funds) • Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities • Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund • Statement of Net Position - Proprietary Fund • Statement of Revenues, Expenses and Changes in Fund Net Position - Page 9 of 30 ` Proposer’s Initials _________ Proprietary Funds • Statement of Cash Flows Proprietary Funds • Statement of Net Position - Fiduciary Funds • Combining and Individual Fund Statements and Schedules o Combining Balance Sheet - Non-Major Governmental Funds o Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds o Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual o Debt Service Fund o Combining Statement of Fiduciary Net Position o Combining Statement of Changes in Assets and Liabilities - Agency Funds • Notes to the Financial Statements • Required Supplementary Information • Schedule of Changes in Net Pension Liability and Related Ratios • Schedule of Contributions - Texas Municipal Retirement System • Schedule of Funding Progress • Any other Financial Section schedules necessary to meet GASB 34 compliance The City’s Finance Department staff will prepare: • Transmittal Letter • Management’s Discussion and Analysis • Statistical Section of the CAFR to be reviewed by the selected firm The City desires that the selected audit firm will print and bind twenty (20) copies of the CAFR and the City will supply the firm all covers and City letterhead stock necessary for printing. Irregularities and Illegal Acts: Auditors shall be required to make an immediate written report of all irregularities and illegal acts of which they become aware to the City Council, Audit Committee and City Manager. Reporting to the City Council and Audit Committee: Auditors shall assure themselves that the City of Colleyville's City Council and Audit Committee is informed of each of the following: 1. The auditor's responsibility under generally accepted auditing standards 2. Significant accounting policies 3. Management judgements and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants Page 10 of 30 ` Proposer’s Initials _________ 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit 10. Future accounting and auditing pronouncements that will affect the City of Colleyville. E. Working Paper Retention and Access to Working Papers Working papers and reports must be retained, at the auditor's expense for a minimum of three (3) years, unless the firm is notified in writing by the City of Colleyville of the need to extend the retention period. The auditor will be required to make working papers available to the City of Colleyville, and auditors of entities of which the City of Colleyville is a recipient of grant funds. Additionally, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. F. Special Considerations The City of Colleyville anticipates that it may prepare one or more official statements in connection with the sale of debt securities, which will contain the basic financial statements and auditor's report thereon. The auditor shall be required, if requested by the financial advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort letters". It is also anticipated during the audit period the City may receive federal assistance in excess of $750,000 and would require a single audit. G. Schedule for the 2018 Fiscal Year Audit (a similar schedule will be developed for audits of future fiscal years if the City exercises its option for additional audits). 1. Interim Work The auditor shall complete all interim work by September 24, 2018 2. Field Work The auditor shall commence field work after October 31, 2018 The auditor shall complete all field work by November 30, 2018 3. Draft Reports The fund level and government wide financial statements as well as the auditor’s lead sheets should be provided to finance by January 3, 2019. A complete draft of the CAFR and recommendations to management should be available, in searchable pdf format, for review by the City staff by January 11, 2019. Page 11 of 30 ` Proposer’s Initials _________ 4. Audit Committee Review The auditor will have a draft of the audit and SAS letter ready for audit committee meeting by February 5, 2019 5. Audit Approval The auditor will have the final report ready for approval by Council on February 19, 2019. IV. PROPOSAL REQUIREMENT A. General Requirements 1. Pre-proposal Conference A non-mandatory conference for firms interested in submitting proposals will be held on Friday, April 13, 2018, at 9:00 AM in the Executive Conference Room, 3rd Floor of City Hall, at 100 Main Street, Colleyville, Texas. Both verbal and written questions will be accepted during the conference. If a representative from your firm is unable to attend, please direct all questions to Karen Hines, Accounting Manager at (817) 503-1015. 2. Inquiries Inquiries concerning the request for proposals and the subject of the request for proposals must be made to Karen Hines, Accounting Manager: e-mail: khines@colleyville.com / phone: (817) 503-1015. 3. Submission of Proposals To be considered, a total of eight (8) copies of a proposal must be received by Karen Hines at the Colleyville City Hall, 100 Main Street, Colleyville, Texas by 11:00 AM CST on Monday, April 16, 2018. Proposals submitted will be evaluated by a three-member Audit Technical Selection committee composed of Shereen Gendy, Chief Financial Officer, Karen Hines, Accounting Manager, and Mushtaq Ali, Accountant. During the evaluation process, the Audit Technical Selection committee and the City of Colleyville reserve the right, where it may serve the City of Colleyville's best interest, to request additional information or clarification from proposers. Firms receiving an acceptable technical score will be requested to make oral presentations on Tuesday, May 1, 2018 as part of the evaluation process. These presentations will be made to the Audit Committee and the Audit Technical Selection committee. Page 12 of 30 ` Proposer’s Initials _________ The City of Colleyville reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Colleyville and the firm selected. It is anticipated selection of a firm will be completed by Friday, May 4, 2018, and the contract will be presented to the City Council at the May 15, 2018 meeting. The following material is required to be received by 11:00 AM CST on Monday, April 16, 2018, for a proposing firm to be considered: a. A master copy (so marked) of a Technical Proposal and eight (8) copies to include the following: i. Title Page - Title page showing the request for proposal's subject; the name address and telephone number of a contact person; and the date of the proposal. ii. Table of Contents iii. Transmittal Letter - A signed letter of transmittal briefly stating the proposer's understanding of the work to be done, the commitment to perform the work within the time period, a statement why the firm believes itself to be the best qualified to perform the engagement and a statement that the proposal is a firm and irrevocable offer for the period ending September 30, 2018. iv. Detailed Proposal - The detailed proposal should follow the order set forth in Section VI B of this request for proposals. v. Audit Request for Proposal Form - Include an initialed copy of this request for proposals form. vi. Executed copies – Fully executed copies of Proposer Guarantees and Proposer Warranties, attached to this request for proposals. b. The proposer shall submit an original and eight (8) copies of a dollar cost bid in a separate sealed envelope marked as follows: SEALED DOLLAR COST BID PROPOSAL FOR CITY OF COLLEYVILLE FOR PROFESSIONAL AUDITING SERVICES - APRIL 16, 2018 Page 13 of 30 ` Proposer’s Initials _________ c. The proposer should send the completed proposal consisting of the two separate envelopes to the following address: CITY OF COLLEYVILLE 100 MAIN STREET COLLEYVILLE, TX 76034 ATTN: KAREN HINES, ACCOUNTING MANAGER Also, hand delivered proposals will be accepted up to 11:00 AM CST on Monday, April 16, 2018. City Hall is located at 100 Main Street, Colleyville, TX. The Finance Department is located on the first floor. B. Submittal Timeline 1. Proposal Calendar The following is a list of key dates up to and including the date proposals are due to be submitted: Request for proposals issued April 2, 2018 Pre-proposal Conference April 13, 2018 Due Date for Proposals April 16, 2018 Oral Presentations May 1, 2018 2.. Notification and Contract Dates Selected Firm Notified May 4, 2018 Contract to Council May 15, 2018 C. Technical Proposal 1. General Requirements The purpose of the technical proposal is to demonstrate the qualifications, competence and capacity of the firms seeking to undertake an independent audit of the City of Colleyville in conformity with the requirements of this request for proposals. As such, the substance of the proposals will carry more weight than their form or manner of presentation. The technical proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements. THERE SHOULD BE NO DOLLAR UNITS OR TOTAL COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT. Page 14 of 30 ` Proposer’s Initials _________ The technical proposal should address all the points outlined in the request for proposals (excluding any cost information, which should only be included in the sealed dollar cost bid.) The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer’s capabilities to satisfy the requirements of the request for proposals. While additional data may be presented, the following subjects, items Nos. 2 through 7, must be included. They represent the criteria against which the proposal will be evaluated. 2. Independence The firm should provide an affirmative statement that it is independent of the City of Colleyville as defined by generally accepted auditing standards. 3. License to Practice An affirmative statement should be included indicating that the firm and all assigned key professional staff are properly licensed to practice in the State of Texas. 4. Firms Qualifications and Experience The proposal should state the size of the firm, the size of the firm's governmental staff, the location of the office from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement and the number and nature of the professional staff to be so employed on a part time basis. A copy of the most recent peer review should be included. 5. Partner, Supervisory, and Staff Qualifications and Experience The firm should identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a certified public accountant in the State of Texas. The firm should also provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past two (2) years and membership in any governmental professional organizations. The firm should also provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. The firm also should indicate how the quality of the staff over the term of the agreement would be assured. Engagement partners, managers, other supervisory staff and specialists may be Page 15 of 30 ` Proposer’s Initials _________ changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express written permission of the City of Colleyville. However, in either case, the City of Colleyville retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. 6. Audit Engagements with Other Governmental Entities The firm should list separately all governmental audit engagements within the past three years, which were performed by the proposing office location, including how many years that city was audited by the firm. Also include a CAFR from one of the listed audit engagements, which was prepared by your staff during the past year, or provide a link if the CAFR is available on the engaged city’s web site. 7. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Section II of this request for proposals. a. Proposed segmentation of the engagement b. Level of staff and the number of hours to be assigned to each proposed segment of the engagement c. Sample sizes and the extent to which statistical sampling is to be used in the engagement d. Extent and use of software in the engagement e. Type and extent of analytical procedures to be used in the engagement f. Approach to be undertaken to gain and document an understanding of the City of Colleyville's internal control structure g. Approach in meeting requirements of SAS 99 and SAS 112 in the engagement D. Sealed Dollar Cost Bid 1. Total All-inclusive Maximum Price The sealed dollar cost bid should contain all pricing information relative to performing the audit engagement and CAFR preparation and printing. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket and travel expenses. The City of Colleyville will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. Page 16 of 30 ` Proposer’s Initials _________ The first page of the sealed dollar cost should include the following information: a. Name of Firm. b. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid and authorized to sign a contract with the City of Colleyville. c. A total All-inclusive Maximum Price for the fiscal year 2018 engagement including CAFR preparation and printing. 2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each The second page of the sealed dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix F, part 1). The price for special services as described in Section II F of this request for proposals should be disclosed on the format provided in Appendix C, part 2. 3. Rates for Additional Professional Services If it should become necessary for the City of Colleyville to request the auditor to render any additional services to either supplement the services requested in this request for proposals or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between the City of Colleyville and the firm. Any such additional work agreed to between the City of Colleyville and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. The City reserves the right to contract any additional audits or reviews or additional work with whomever they choose. 4. Progress payments Progress payments will be made on the basis of hours of work completed during the course of the engagement incurred in accordance with the firm's dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month. The City of Colleyville will remit payment to the firm within thirty days of receipt of the invoice. E. Assistance to be Provided to the Auditor 1. Finance Department Page 17 of 30 ` Proposer’s Initials _________ The Finance Department staff will be available to assist the firm by providing information, documentation, and explanations. The preparation of confirmations will be the responsibility of the City of Colleyville. Also, the City has an Information Systems Management Department and that department will answer any questions about the computer hardware. Additionally, there is on-line documentation on the “Munis” software system. 2. Statements and Schedules to be Prepared by the City of Colleyville Staff All of the following schedules will be available for auditors at the start of final fieldwork: Trial Balances (All Funds), Debt Service Requirements, Tax Supported Debt Roll forward, Utility Debt Roll forward, Lead Schedules-Accounts Payable Lead Schedules-Accrued Liabilities, Lead Schedules-Accounts Receivable, Detailed Fixed Assets, Detailed Fixed Assets (Enterprise Funds), Ad Valorem tax receipts and receivables. Additionally, the City will provide twenty hours of staff time to prepare any other schedule the auditors may need. 3. Work Area, Telephones, Photocopying, and FAX Machines The City of Colleyville will provide the auditors with reasonable workspace located in the Finance Department including, conference table and chairs. The auditors will also be provided with access to wireless internet, a photocopier, and a fax machine. 4. Report Preparation Report preparation, editing, and printing shall be the responsibility of the auditor. V. WITHDRAWAL/MODIFICATION OF PROPOSALS A firm may withdraw a Proposal at any time prior to the final submission deadline upon presentation of acceptable identification. The firm may thereafter submit a new or modified Proposal prior to the final submission deadline. Any submitted Proposal may be withdrawn or revised Proposal substituted if a written notice is submitted to the Karen Hines, Accounting Manager, prior to the submittal deadline. Any interlineations, alterations, erasure or other amendment made before the submittal deadline, must be signed or initialed by the firm or authorized agent, guaranteeing authenticity. Proposals cannot be altered, amended or withdrawn by firm after the submission deadline. Modifications offered in any other manner, oral Page 18 of 30 ` Proposer’s Initials _________ or written, will not be considered. A final Proposal cannot be changed or withdrawn after the designated time for receipt, except for modifications/clarifications requested by the City of Colleyville after the date of receipt and following any oral presentations. VI. EVALUATION PROCESS A. Review of Proposals The Audit Technical Selection committee will use a point formula during the review process to score proposals. Each member of the Audit Selection Technical committee will first score each technical proposal by each of the criteria described in Section VII B below. The full Audit Technical Selection committee will then convene to discuss these evaluations and to combine the individual scores to arrive at a composite technical score for each firm. At this point, firms with an unacceptably low technical score will be eliminated from further consideration. Firms with an acceptable score will be invited to make an oral presentation to the full Audit Committee, and will be assigned scores based upon their presentation. After the oral presentations are completed, the sealed dollar cost bid will be opened and additional points will be added to the score based upon the price bid. The maximum score will be assigned to the firm offering the lowest total all- inclusive maximum price. Appropriate fractional scores will be assigned to the other proposers. The City of Colleyville reserves the rights to retain all proposals submitted, and use any idea in a proposal regardless of whether that proposal is selected. B. Evaluation Criteria Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process: 1. Mandatory Elements a. The audit firm is independent and licensed to practice in the State of Texas b. The audit firm’s professional personnel have received adequate continuing professional education within the preceding two years c. The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal 2. Technical Qualifications: Maximum Points - 80 a. Audit Expertise and Experience - 30 points Page 19 of 30 ` Proposer’s Initials _________ (1) The firm’s past experience and performance on comparable government engagements (2) The quality of the firm’s professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation b. Audit Approach - 30 points (1) Adequacy of proposed staffing plan for various segments of the engagement (2) Adequacy of sampling techniques (3) Adequacy of analytical procedures (4) Adequacy of review of internal controls c. Government References – 20 points 3. Oral Presentations: Maximum Points - 10 4. Price: Maximum Points – 10 COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF AN AUDIT FIRM C. Oral Presentations Firms having an acceptable technical score will be requested to make an oral presentation to the Audit Selection Committee on Tuesday, May 1, 2018. Such presentations will provide firms with an opportunity to answer any questions the Audit Selection Committee may have on a firm's Proposal. D. Final Selection The City Council will select a firm based upon the recommendation of the Audit Committee. It is anticipated that a firm will be selected by May 4, 2018. The City Council will approve the contract at the May 15, 2018 Council meeting. E. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Colleyville and the firm selected. The City of Colleyville reserves the right without prejudice to Page 20 of 30 ` Proposer’s Initials _________ reject any or all proposals. F. Award of Contract: It is understood that the City reserves the right to accept or reject any and all Proposals and to re-solicit for Proposals, as it shall deem to be in the best interest of the City. Receipt and consideration of any Proposal shall under no circumstances obligate the City to accept any Proposal. If an award of the contract is made, it shall be to the responsible firm whose Proposals is determined to be the best evaluated offer taking into consideration the relative importance of the evaluation factors set forth in this Request for Proposals. VII. GENERAL TERMS AND CONDITIONS: Respondents are advised to review this request carefully, and to follow instructions completely, as failure to make a complete submission as described herein may result in rejection of the submission. DISCLOSURE OF INTEREST: Pursuant to Chapter 176 of the Texas Local Government Code, a person, or agent of a person, who contracts or seeks to contract for the sale or purchase of property, goods, or services with the City of Colleyville must file a completed conflict of interest questionnaire which is included in this solicitation or available at www.ethics.state.tx.us. The conflict of interest questionnaire must be filed with the City of Colleyville no later than the seventh business day after the person or agent begins contract discussions or negotiations with the City or submits to the City an application, response to a request for proposal or bid, correspondence, or writing related to a potential agreement. An updated conflict of interest questionnaire must be filed in accordance with Chapter 176 of the Local Government Code. An offense under Chapter 176 is a Class C misdemeanor. By doing business or seeking to do business with the City of Colleyville, you acknowledge that you have been notified of the requirements of Chapter 176 of the Texas Local Government Code and that you are solely responsible for complying with these requirements. Certificate of interested parties: in 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the Government Code and applies to all contracts entered into on or after January 1, 2016. The law states that a governmental entity may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the business entity submits the signed contract to the governmental entity. The law applies to all contracts/purchases of a governmental entity that require action or vote by the governing body of the entity. Page 21 of 30 ` Proposer’s Initials _________ With regards to the City of Colleyville, a vendor that is awarded a contract or purchase that is greater than $50,000 is required to electronically create a Form 1295 through the Texas Ethics Commission website (https://www.ethics.state.tx.us) and submit a signed and notarized copy of the form to the City. A contract, including City-issued purchase order, will not be enforceable or legally binding until the City receives and acknowledges receipt of the properly completed Form 1295 from the vendor. Prohibition of Boycott of Israel: House Bill 89, effective September 1, 2017, amended the Texas Government Code to add Chapter 2270, Prohibition on contracts with companies boycotting Israel. Effective September 1, 2017, a state agency and a political subdivision (which includes a city) may not enter a contract with a company for goods or services unless the contract contains a written verification from the company that (a) it does not boycott Israel, and (b) will not boycott Israel during the term of the contract. “Boycott Israel” is defined to mean refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business with Israel or in an Israel-controlled territory, but does not include an action made for ordinary business purposes. “Company” is defined to mean a for-profit sole proprietorship, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. Senate Bill 252: Senate Bill 252, effective September 1, 2017, prohibits governmental contracts with a company doing business with Iran, Sudan, or a foreign terrorist organization. Senate Bill 252 amended the Texas Government Code to add Chapter 2252, Prohibition on contracts with certain companies. This Bill prohibits state agencies from contracting with or investing in companies that do business with Iran or designated foreign terrorist organizations. “Foreign terrorist organization” means an organization designated as a foreign terrorist organization by the United States Secretary of State as authorized by 8 U.S.C. Section 1189. “Government contracts” means a contract awarded by a governmental entity for general construction, an improvement, a service, or a public works project or for a purchase of supplies, materials, or equipment. The term includes a contract to obtain a professional or consulting service subject to Chapter 2254. Page 22 of 30 ` Proposer’s Initials _________ The City may request representation and other information sufficient to determine firm’s ability to meet the minimum standards as indicated herein. Respondents are advised to review all sections of this RFP carefully, and to follow instructions completely, as failure to make a complete submission as described herein may result in rejection of the submission. All costs associated with developing or submitting a proposal in response to this request, or to provide oral or written clarification of its content shall be the sole responsibility of the respondent. The City of Colleyville assumes no responsibility of these costs. This RFP does not commit the City to pay any costs incurred in preparation or submission of a response or in anticipation of a contract. This RFP does not commit the City of Colleyville to enter into a contract. The City reserves the right to award one, more than one, or no contract(s) in response to this RFP. The City of Colleyville reserves the right to waive any formalities and irregularities in the submissions or proposals received. The City also reserves the right to terminate this RFP, and reissue a subsequent solicitation, and/or remedy technical errors in the RFP process. The Contract, if awarded, will be awarded to the respondent whose submittal is deemed most advantageous to the City of Colleyville, as determined by the selection committee, upon approval of the Colleyville City Council. The City of Colleyville reserves the right to contact any respondent for clarification, interviews or to negotiate if such is deemed desirable by the City. All respondents are prohibited from making any contact with any City personnel, City Council, or City Manager with regard to the RFP, other than in the manner and to the person designated herein. The City of Colleyville reserves the right to disqualify any respondent found to have contacted anyone other than the designee. Responders should be aware that the RFP and the contents of the successful RFP will become part of any subsequent contractual document that may arise from this Request. In cases of discrepancy between the RFP and the responder’s submittals, the RFP will rule. Submittals cannot be altered or amended after the closing date. Submittals will be publicly acknowledged in the City Hall Finance Department located at 100 Main Street, Colleyville, Texas 76034 at the time and date specified. All interested parties may be present. There will be no disclosure of contents to competing firms, and all Statements of Proposals will be kept confidential during the evaluation and negotiation process. Page 23 of 30 ` Proposer’s Initials _________ By submitting, firm certifies that they have fully read and understands this Request for Proposals and has full knowledge of the scope and quality of the services to be furnished and intends to adhere to the provisions described herein. Failure to do so will be at the firm’s own risk. Any submittal which does not contain all of the information requested herein will be considered incomplete and may be rejected. The City reserves the right to retain all submittals and to use any idea in a submittal regardless of whether the firm is selected. Submission indicated acceptance by the firm of the terms and conditions contained in the Request for Proposals unless clearly and specifically noted in the submission and confirmed in the contract between the City and the selected firm. The City reserves the right to waive any informalities and technicalities and to accept the offer considered most advantageous in order to obtain the best value for the City. Causes for rejection of a submittal may include but shall not be limited to:  The firm’s current violation of any City Ordinance  The firm’s current inability to satisfactorily perform the work or service  The firm’s previous failure to properly and timely perform its obligations under a contract with the City Firm may be disqualified and rejection of submittals may be recommended for any (but not limited to) of the following causes:  Failure to use the forms furnished by the City (if any)  Lack of signature by an authorized representative  Failure to properly complete the submittal requirements  Evidence of collusion among firms  Any alterations of the language contained within the RFP. The City of Colleyville reserves the right to waive any minor informality or irregularity. The City may conduct reference checks as needed to evaluate submittals. The City may contact those listed, and inclusion of this listing in your submittal is an agreement that the City may contact the named reference. The City reserves the right to contact other companies or individuals that can provide information to the City that will assist in the evaluation of the capability of the firm. The City of Colleyville operates and is funded on a fiscal year basis; accordingly, the City reserves the right to terminate, without liability, any contract for which funding is not available. Page 24 of 30 ` Proposer’s Initials _________ The City of Colleyville is exempt from Federal Excise and State Sales Tax; therefore, tax must not be included in any contract that may be awarded from this Request for Proposals. The City reserves the right to negotiate all elements that comprise the successful firm’s response to ensure that the best possible consideration can be afforded to all concerned. The firm may not assign its rights or duties under an award without the prior written consent of the City. Such consent shall not relieve the assignor of liability in the event of default by its assignee. Firm will not be allowed to take advantage of any errors or omissions in this Request for Proposals. Firms shall promptly notify the City of any omission, ambiguity, inconsistency or error that they may discover upon examination of the documents. The City assumes no responsibility for any errors or misrepresentations that result from incomplete Proposals. No plea of ignorance of conditions that exist, or difficulties or conditions concerning the work to be performed, or execution of the work shall be accepted as an excuse for any failure or omission on the part of specifications documents governing the work. The firm awarded the contract shall not be allowed any extra compensation by reason of any matter or aspect prior to the Proposal. Any ambiguity in the Request as a result of omission, error, lack of clarity or noncompliance by the firm with specifications, instructions and all conditions shall be construed in the favor of the City. Once the submittal deadline has passed, any Proposal shall constitute an irrevocable statement to provide the services set forth in this Request. Such Proposal shall be irrevocable until the earlier of the expiration of ninety (90) days from the submission deadline, or until a contract has been awarded by the City. When the City has reason to question the firm’s intent to perform, the City may demand that written assurances of intent to perform be provided. In the event such a demand is made, and no assurance is given within ten (10) calendar days, the City may treat this failure as an anticipatory repudiation of the contract. The final contract document will be prepared by the City on the City’s form and will be governed and construed according to the laws of the State of Texas. The contract is performable in Tarrant County, Texas. Venue shall lie exclusively in Tarrant County, Texas. All services shall be provided in accordance with applicable requirements and ordinances. Page 25 of 30 ` Proposer’s Initials _________ Firms shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official, or agent of the City. The City may, by written notice to the successful firm, cancel this contract without liability to the firm if it is determined by the City that gratuities or bribes of entertainment, gifts, or otherwise, were offered or given by the firm, its agents, or its representatives to any City officer, employee, or elected representative with respect to the performance of this contract. In addition, the successful firm shall be subject to penalties as stated in Title 8 of the Texas Penal Code. The City of Colleyville requires awarded firm to carry the minimum insurance as required by state law. Certificates of Insurance must be provided to the City. [End of Document – Appendices Begin on Following Page] Page 26 of 30 ` Proposer’s Initials _________ Appendix A PROPOSER GUARANTEES I. The proposer certifies it can and will provide and make available, at a minimum, all services set forth in Section III, Nature of Services Required Signature of Official: Name (typed): Title: Firm: Date: Page 27 of 30 ` Proposer’s Initials _________ Appendix B PROPOSER WARRANTIES A. Proposer warrants that it is willing and able to comply with State of Texas laws with respect to foreign (non-state of Texas) corporations. B. Proposer Warrants that is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the express prior written permission of the City of Colleyville. D. Proposer warrants that all information provided in connection with this proposal is true and accurate. Signature of Official: Name (typed): Title: Firm: Date: Page 28 of 30 ` Proposer’s Initials _________ Appendix C - Part 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2018 FINANCIAL STATEMENTS AND CAFR PREPARATION AND PRINTING Standard Hourly Hours Rates Total Partner(s) : $ $_______ Manager(s) : $ $_______ Supervisory Staff : $ $_______ Staff : $ $_______ Other (Specify) : $ $_______ Subtotal $ Out of pocket expenses $ CAFR Preparation (if not included above) $ Typing, Printing, Binding and Delivery of Twenty-five (25) Copies of the CAFR $ Total all-inclusive maximum price for 2018 audit and CAFR preparation $ Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction from the total all-inclusive maximum price. Projected annual increase for FY 2019-2022 (Express as a % or Type: e.g. Increase will be tied to DFW annual CPI increase) : ___________________________________________ Signature of Official: Name (typed): Title: Firm: Date: Page 29 of 30 ` Proposer’s Initials _________ Appendix C - Part 2 SCHEDULE OF PROFESSIONAL FEES FOR SERVICES DESCRIBED IN THE REQUEST FOR PROPOSALS SECTION III E – REPORTS FOR BOND SALE Total Price $ SINGLE AUDIT Total Price $ Signature of Official: Name (typed): Title: Firm: Date: Page 30 of 30 ` Proposer’s Initials _________ Appendix D CITY FUNDS FUND NAME DESCRIPTION FUND TYPE 001 General Fund General government purposes; M&O portion of tax rate General Fund 036 Strategic Initiatives Programs/projects linked to the strategic plan 004 Debt Service From debt (I&S) portion of the tax rate for debt payments Debt Service 003 Capital Projects Capital projects; some funding sources have restricted uses Capital Projects 012 Park Land Dedication Acquisition of land for new park sites Capital Projects 032 VERF Fund Committed to server, equipment, and vehicle replacements Capital Projects 034 Colleyville Tomorrow Capital purchases/at Council discretion; Gas leases on City property Capital Projects 035 Parks Tomorrow From gas lease on City park property for parks capital projects Capital Projects 005 Voluntary Park Fund New or existing park capital costs (no M&O); Donations through utility bills Special Revenue 007 Donations Fund Donations; Only restricted if specified by donor Special Revenue 011 Voluntary Library Donations through utility bills for Library activities Special Revenue 015 Police Asset Forfeiture Seizures of property; restricted by law Special Revenue 016 Grants Projects supported by Grants Special Revenue 018 Tree Preservation From tree mitigation fees used for tree replanting on city-owned property Special Revenue 019 Library Donation Donations for Library needs or as specified by donor Special Revenue 020 Recreational Event Event revenue and special events expenses Special Revenue 023 Leose Police training; State of Texas Special Revenue 027 Crime District (CCCPD) From 0.5 cent sales tax used for Public safety and crime control activities Special Revenue 028 Kidsville Kidsville park maintenance Special Revenue 029 Court Technology From municipal court technology fee for court technology Special Revenue 030 Court Security From municipal court building security fee for security-related expenses Special Revenue 033 Public Art Public Art Special Revenue 037 Juvenile Case Mgr From juvenile case manager fee Special Revenue 038 Hotel/Motel Fund From Hotel/Motel tax Special Revenue 002 Utility Operating Fund From water and wastewater base and volumetric rates Enterprise 039 Utility Capital Projects From transfers for Utility capital projects Capital Projects 017 Drainage Fee Fund From monthly drainage fee for drainage operations and capital projects Enterprise 006 Sesquicentennial Fund Established for 150th anniversary of Texas’ independence from Mexico Fiduciary 008 Employee Activity From employee Contributions for employee activities Fiduciary 026 TIF Fund From incremental assessed value revenue in the TIF District Component Unit 024 CEDC From 0.5% cent sales tax for Library, Parks, and Colleyville Center Special Revenue 025 CEDC - Capital For Library, City Park, McPherson Park & Colleyville Center capital projects Capital Projects City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3b Agenda Date 05/01/2018 Number Type Presentation and Discussion Department Finance Title Interview of audit firms submitting proposals in response to the City’s request for proposals for an external audit firm Explanation The Audit Committee will interview the audit firms for the City's annual external audit for Fiscal Year ended September 30, 2018. Each firm will be allotted ten minutes to do a short presentation and answer the Committee's questions. The audit firms that will be presenting before the Committee are: 1. BKD, LLP 2. Weaver and Tidwell, LLP 3. Whitley Penn, LLP 4.Pattillo, Brown & Hill, LLP Attachments City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3c Agenda Date 05/01/2018 Number Type Presentation and Discussion Department Finance Title Opening the sealed cost portion of the audit proposals and consider a recommendation to City Council for the selection of an audit firm Explanation Following the prospective audit companies' presentations, the audit committee will open the sealed bids. Staff will present their recommendation in response to the request for proposals for the City's annual external audit for Fiscal Year ended September 30, 2018 for the purpose of recommending an audit firm to the City Council on May 15, 2018. Attachments 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 Agenda Date 05/01/2018 Number Type Presentation Department City Manager Title Quarterly Investment Report for the quarter ended March 31, 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 March 31, 2018: Cash & Cash Equivalents (Logic) were $60,500,298, investments in governmental issues were $20,782,071 and the CDARS/CD's totaled $4,072,284. The total funds held by the City equaled $85,354,654 and were allocated as follows: Logic 31% Government Issues 24% CDARS/CD's 4% CD'S 1% Cash 40% Investment Benchmark 1.56% Logic 1.61% Government Issues 1.34% CDARS 0.52% CD'S 2.53% Bank Earned Income Credit 1.45% Portfolio 1.15% Interest earnings for the quarter were $188,306 with an average yield of 1.48% versus $154,188 and 1.15% for the prior quarter. These percentages are within the guidelines of the City investment policy. Attachments 1.Investment Report-March 2018 QUARTERLY INVESTMENT REPORT FOR QUARTER ENDING March 31, 2018 THIS REPORT IS IN COMPLIANCE WITH THE PUBLIC FUNDS INVESTMENT ACT AND ADOPTED INVESTMENT POLICY STRATEGY Shereen Gendy Karen Hines Portfolio Investment Report for the Quarter Ending March 31, 2018 CONSOLIDATED INVESTMENT REPORT Current Last Quarter As of As of Cash and Investment Balances 3/31/2018 12/31/2017 Cash Balances 34,220,412$ 29,516,598$ LOGIC Balances 26,279,886$ 26,175,681$ Investment Portfolio Balances 20,782,071$ 20,783,848$ CDARS 3,576,284$ 4,591,089$ CD'S 496,000$ -$ Total Cash, Logic, & Other Investments 85,354,654$ 81,067,216$ Investment Yields, Maturities, and Interest Current Last Quarter As of As of 3/31/2018 12/31/2017 Bank Earned Income Credit 1.45%1.10% 13 Week Treasury Benchmark 1.56%1.21% Logic Average Quarterly Yield 1.61%1.32% Logic Quarter's Average Weighted Maturity 29 35 Average Weighted Yield: Agency 1.34%1.21% Average Weighted Maturity: Agency 373 393 Average Weighted Yield: CDARS 0.52%0.50% Average Weighted Maturity: CDARS 256 287 Average Weighted Yield: CD'S 2.53%NA Average Weighted Maturity: CD'S 730 NA Investment Interest Earnings - Quarter 188,306$ 154,188$ Bank Earnings Allowance 20,917$ 16,572$ Interest Rate/Yield for the Quarter 1.48%1.15% Portfolio Investment Report for the Quarter Ending March 31, 2018 CONSOLIDATED INVESTMENT REPORT Cash Balances 40% LOGIC Balances 31% Investment Portfolio Balances 24% CDARS 4% CD'S 1% CASH & INVESTMENT BALANCES Portfolio Investment Report for the Quarter Ending March 31, 2018 CONSOLIDATED INVESTMENT REPORT Distribution by Maturity Number 1 to 90 days 5 5,201,190$ 25.03%5,188,727.60$ 91 to 180 days 1 999,300$ 4.81%995,257.00$ 181 to 365 days 3 3,000,392$ 14.44%2,982,691.00$ Over 365 days 11 11,581,190$ 55.72%12,619,354.10$ Total 20 20,782,071$ 100%21,786,030$ Source: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-Yield-Data-Visualization.aspx Outstanding Security Portfolio Purchase Price Percent (Value)Market Value Treasury Yield Curve Portfolio Investment Report for the Quarter Ending March 31, 2018 CONSOLIDATED INVESTMENT REPORT Distribution by Type of Investment Number Federal Home Loan Bank (FHLB)6 $7,397,885 36%$8,549,089 Federal Farm Credit Bank (FFCB)9 $8,985,766 43%$9,022,919 Federal Home Loan Mortgage Corporation (FHLMC)4 $3,394,720 16%$3,215,688 Federal National Mortgage Association (FNMA)1 $1,003,700 5%$998,334 Total 20 20,782,071$ 100%21,786,030$ Outstanding Security Portfolio Purchase Price Percent (Value)Market Value 36%, Federal Home Loan Bank (FHLB) 43%, Federal Farm Credit Bank (FFCB) 16%, Federal Home Loan Mortgage Corporation (FHLMC) 5%, Federal National Mortgage Association (FNMA) INVESTMENT SECURITY DISTRIBUTION BY TYPE ALL FUNDS CASH & INVESTMENT REPORTS CASH LOGIC INVESTMENTS CDARS CD'S TOTAL 001 GENERAL FUND 8,540,033 418,245 4,790,656 2,555,094 496,000 16,800,027 036 STRATEGIC INITIATIVES 39,482 495,497 0 0 534,979 004 DEBT SERVICE FUND 896,165 34,653 0 0 930,819 003 CAPITAL PROJECTS 12,424,832 1,886,848 2,493,119 508,787 17,313,587 012 PARK LAND DEDICATION 109,038 0 1,325,973 0 1,435,012 032 VEHICLE AND CAPITAL REPLACEMENT 903,337 83,773 514,300 0 1,501,410 034 COLLEYVILLE TOMORROW 254,988 1,706,844 475,442 0 2,437,274 035 PARKS TOMORROW 2,331 1,038,882 0 0 1,041,213 005 VOLUNTEER PARK FUND 258,553 0 750,000 0 1,008,553 007 DONATIONS FUND 54,780 0 0 0 54,780 011 LIBRARY FUND 70,187 0 359,643 0 429,829 015 POLICE ASSET FORFEITURE 8,735 0 0 0 8,735 016 TDPA GRANT (1,527)0 0 0 (1,527) 018 TREE PRESERVATION 318,198 0 0 0 318,198 019 LIBRARY DONATION 147,765 0 0 0 147,765 020 RECREATIONAL EVENT 12,501 0 0 0 12,501 023 LEOSE 3,733 0 0 0 3,733 027 CRIME DISTRICT 11,695 778,074 0 0 789,769 028 KIDSVILLE MAINTENANCE 5,813 0 0 0 5,813 029 COURT TECHNOLOGY (14,753)0 0 0 (14,753) 030 COURT SECURITY 61,512 0 0 0 61,512 033 PUBLIC ART 7,904 0 0 0 7,904 037 JUVENILE CASE MANAGER 23,445 0 0 0 23,445 038 HOTEL / MOTEL FUND 207,764 0 0 0 207,764 002 UTILITY FUND 1,330 2,702,713 2,698,792 512,403 5,915,237 039 UTILITY CAPITAL PROJECTS FUND 7,213,017 2,962,001 62,117 0 10,237,135 017 DRAINAGE FEE 484,369 1,506,200 400,000 0 2,390,570 006 SESQUICENTINIAL FUND 20,728 0 0 0 20,728 008 EMPLOYEE ACTIVITY 4,489 0 0 0 4,489 040 INSURANCE TRUST FUND (5,283)0 0 0 (5,283) 026 TIF FUND 632,891 11,644,443 5,412,031 0 17,689,366 32,698,054 25,258,174 19,282,071 3,576,284 496,000 81,310,583 024 CEDC 1,521,656 956,621 1,500,000 0 3,978,276 025 CEDC - CAPITAL 703 65,091 0 0 65,794 1,522,359 1,021,712 1,500,000 0 0 4,044,070 34,220,412 26,279,886 20,782,071 3,576,284 496,000 85,354,653 ENTERPRISE FUNDS FIDUCIARY FUNDS 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. ALL FUNDS CASH & INVESTMENTS REPORT BY TYPE AS OF MARCH 31, 2018 GRAND TOTAL COLOR CODE DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS SPECIAL REVENUE FUNDS GOVERNMENTAL FUNDS ENTERPRISE FUNDS FIDUCIARY FUNDS COMPONENT UNIT COLLEYVILLE ECON DEV CORP 8 Available Available for Approved Restricted AS OF MARCH 31, 2018 Unrestricted Restricted Purpose Projects Unavailable Ran 4.12.18 001 GENERAL FUND 16,682,566 32,548 - 84,913 16,800,027 036 STRATEGIC INITIATIVE 534,979 - - - 534,979 004 DEBT SERVICE FUND - 930,819 - - 930,819 003 CAPITAL PROJECTS 5,791,770 6,670,013 4,701,181 150,623 17,313,587 012 PARK LAND DEDICATION - 1,435,012 - - 1,435,012 032 VEHICLE AND CAPITAL REPLACEMENT - 1,501,410 - - 1,501,410 034 COLLEYVILLE TOMORROW 2,437,274 - - - 2,437,274 035 PARKS TOMORROW 1,041,213 - - - 1,041,213 005 VOLUNTARY PARK FUND - 1,008,553 - - 1,008,553 007 DONATIONS FUND - 54,780 - - 54,780 011 VOLUNTARY LIBRARY FUND - 429,829 - - 429,829 015 POLICE ASSET FORFEITURE 8,735 8,735 016 GRANTS - (1,527) - - (1,527) 018 TREE PRESERVATION - 318,198 - - 318,198 019 LIBRARY DONATION - 147,765 - - 147,765 020 RECREATIONAL EVENT - 12,501 - - 12,501 023 LEOSE - 3,733 - - 3,733 027 CRIME DISTRICT - 789,769 - - 789,769 028 KIDSVILLE MAINTENANCE - 5,813 - - 5,813 029 COURT TECHNOLOGY - (14,753) - - (14,753) 030 COURT SECURITY - 61,512 - - 61,512 033 PUBLIC ART - 7,904 - - 7,904 037 JUVENILE CASE MANAGER - 23,445 - - 23,445 038 HOTEL / MOTEL FUND - 207,764 - - 207,764 002 UTILITY FUND 5,442,554 - - 472,683 5,915,237 039 UTILITY CAPITAL PROJECTS FUND 5,120,800 3,897,185 1,157,033 62,117 10,237,135 017 DRAINAGE FEE 2,231,097 37,095 - 122,378 2,390,570 006 SESQUICENTINIAL FUND - 20,728 - - 20,728 008 EMPLOYEE ACTIVITY - - - 4,489 4,489 040 INSURANCE TRUST FUND (5,283) (5,283) 026 TIF FUND 15,685,674 115,813 1,887,878 - 17,689,366 54,967,928 17,704,644 7,746,092 891,920 81,310,583 024 CEDC 3,978,276$ -$ -$ -$ 3,978,276$ 025 CEDC - CAPITAL - 65,794 - - 65,794 58,946,204 17,770,438 7,746,092 891,920 85,354,653 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. 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 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 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 017 DRAINAGE FEE FUND Monthly drainage fee Operations and capital projects related to drainage maintenance and improvement 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 CUSIP SECURITY PURCHASE MATURITY PURCHASE PAR MARKET LESS PLUS MARKET YIELD ON INTEREST INTERESTDATE DATE PRICE VALUE VALUE MATURITY PERIOD VALUE INVESTMENTRECEIVED12/31/2017 PROCEEDS PURCHASES3/31/2018TO MATURITY3137EAEA3 FHLMC NOTE4/12/2016 4/9/2018 $999,850 $1,000,000 $997,243$998,159 0.758% $1,869 $15,0983136G0V57 FNMA NOTE 5/9/2016 4/30/2018 $1,003,700 $1,000,000 $998,448$998,334 0.811% $2,000 $16,0203133EGAF2 FFCB NOTE 5/20/2016 5/16/2018 $997,400 $1,000,000 $997,520$997,306 0.882% $2,175 $17,5433130A8EJ8 FHLB NOTE 6/10/2016 6/5/2018 $1,200,000 $1,200,000 $1,196,081$1,196,338 0.850% $2,515 $20,260313379DT3 FHLB NOTE 7/5/2017 6/8/2018 $1,000,240 $1,000,000 $999,745$998,591 1.224% $3,018 $11,3353133EGML6 FFCB NOTE 7/18/2016 7/18/2018 $999,300 $1,000,000 $995,725$995,257 0.785% $1,936 $15,7003133EFX69 FFCB NOTE 10/17/2016 10/5/2018 $1,000,580 $1,000,000 $996,048$994,049 0.930% $2,293 $18,2943133EG5Q4 FFCB NOTE 2/1/2017 2/1/2019 $1,000,000 $1,000,000 $997,081$994,656 1.300% $3,205 $26,0003130AAS41 FHLB NOTE 3/24/2017 2/8/2019 $999,812 $1,000,000 $996,275$993,986 1.280% $3,156 $24,0573133EHHN6 FFCB NOTE 3/5/2017 5/2/2019 $1,000,000 $1,000,000 $996,128$993,425 1.350% $3,329 $29,1453137EAEH8 FHLMC NOTE7/31/2017 8/15/2019 $500,000 $500,000 $498,499$495,710 1.375% $1,695 $14,033313380FB8 FHLB NOTE 8/29/2017 9/13/2019 $1,000,000 $1,000,000 $996,975$990,732 1.375% $3,390 $28,0653137EADM8 FHLMC NOTE9/14/2017 10/2/2019 $998,788 $1,000,000 $996,011$832,538 1.250% $3,082 $25,6163137EADM8 FHLMC NOTE10/13/2017 10/2/2019 $896,082 $900,000 $889,282$889,282 1.475% $6,147 $26,1503130ACLS1 FHLB NOTE 10/11/2017 10/11/2019 $2,200,000 $2,200,000 $2,184,721$2,184,721 1.550% $15,974 $68,1953133EHP98 FFCB NOTE 11/6/2017 11/6/2019 $1,000,000 $1,000,000 $993,668$993,668 1.600% $6,356 $32,0003133EGJ30 FFCB NOTE 12/29/2017 11/18/2019 $1,238,775 $1,255,000 $1,235,061$1,235,061 1.800% $5,694 $42,6423133EHV75 FFCB NOTE 12/8/2017 11/21/2019 $749,711 $750,000 $746,713$746,713 1.750% $4,063 $25,639PURCHASED DURING THIS QUARTER3133EJCN7 FFCB NOTE2/14/20182/14/2020 $1,000,000 $1,000,000$1,000,000 $1,072,785 2.070% $2,552 $41,4003130ADN32 FHLB NOTE3/7/20182/11/2020 $997,834 $1,000,000$997,834 $2,184,721 2.240% $1,473 $43,327OUTSTANDING SECURITIES AT THE END OF THE QUARTER20,782,071 20,805,000 18,711,223 - 1,997,834 21,786,030 75,923 540,519 MATURED DURING THIS QUARTER3133EFZR1 FFCB NOTE 2/17/20162/12/2018$1,000,580 $1,000,000 $999,539 $1,004,000 0.771% $908 $15,3363137EADP1 FHLB NOTE 3/23/20163/7/2018$999,030 $1,000,000 $999,135 $1,004,375 0.925% $1,673 $18,095SECURITIES MATURED DURING THE QUARTER1,999,610 2,000,000 1,998,674 2,008,375 2,581 33,430 GRAND TOTAL22,781,681 22,805,000 20,709,897 2,008,375 1,997,834 21,786,030 78,504 573,949 CITY OF COLLEYVILLE INVESTMENT SECURITIES HELD JAN 1 - MAR 31, 2018 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1186 UTILITY LINE RENEWAL 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 003-1340 CASTLETON MANOR 005-1172 VOLUNTARY PARK FUND 011-1172 LIBRARY DONATIONS FUND 012-1172 PARK LAND DEDICATION FUND 017-1172 DRAINAGE FUND OPERATING 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY DATE OF LAST INTEREST PAYMENT INTEREST TO ACCRUE FOR PERIOD TOTAL DAYS OUTSTANDING/OR INTEREST PERIOD DAYS OUTSTANDING IN FISCAL YEAR/INTEREST PERIOD ACCRUED INTEREST FHLMC NOTE FNMA NOTE FFCB NOTE FHLB NOTE FFCB NOTE FFCB NOTE FFCB NOTE FHLB NOTE 12-Apr-16 09-May-16 20-May-16 10-Jun-16 18-Jul-16 17-Oct-16 01-Feb-17 24-Mar-17 09-Apr-18 30-Apr-18 16-May-18 05-Jun-18 18-Jul-18 05-Oct-18 01-Feb-19 08-Feb-19 0.520%0.370%0.450%0.410%0.430%0.480%0.640%0.870% 0.758%0.811%0.882%0.850%0.785%0.930%1.300%1.280% 3137EAEA3 3136G0V57 3133EGAF2060 3130A8EJ8 3133EGML6 3133EFX69 3133EG5Q4 3130AAS41 999,850.00 0.00 997,400.00 0.00 1,000,000.00 500,000.00 203,903.34 359,642.52 115,973.26 200,000.00 799,796.66 849,650.00 549,300.00 499,872.46 499,811.73 150,000.00 350,350.00 100,000.00 25,091.76 $999,850.00 $1,003,700.00 $997,400.00 $1,200,000.00 $999,300.00 $1,000,580.00 $1,000,000.00 $999,811.73 $995,870.00 $1,000,731.00 $0.00 $1,199,263.20 $0.00 $0.00 $0.00 $0.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,200,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 15,089.51 16,015.09 17,546.43 20,260.23 15,706.88 18,296.88 26,000.00 24,056.99 43,018.00 43,038.00 43,055.00 43,074.00 43,118.00 43,013.00 43,132.00 43,139.00 3,787.38 5,000.00 3,750.00 5,100.00 3,750.00 4,800.00 6,500.00 6,350.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 #182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 $3,750.00 $5,000.00 $3,750.00 $5,100.00 $3,750.00 $4,800.00 $6,500.00 $6,350.00 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1186 UTILITY LINE RENEWAL 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 003-1340 CASTLETON MANOR 005-1172 VOLUNTARY PARK FUND 011-1172 LIBRARY DONATIONS FUND 012-1172 PARK LAND DEDICATION FUND 017-1172 DRAINAGE FUND OPERATING 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY DATE OF LAST INTEREST PAYMENT INTEREST TO ACCRUE FOR PERIOD TOTAL DAYS OUTSTANDING/OR INTEREST PERIOD DAYS OUTSTANDING IN FISCAL YEAR/INTEREST PERIOD ACCRUED INTEREST FFCB NOTE FHLB NOTE TREASURY NOTE FHLB NOTE FHLMC NOTE FHLMC NOTE FHLB FFCB NOTE 03-May-17 05-Jul-17 31-Jul-17 29-Aug-17 14-Sep-17 13-Oct-17 26-Oct-17 06-Nov-17 02-May-19 08-Jun-18 15-Aug-19 13-Sep-19 02-Oct-19 02-Oct-19 11-Oct-19 06-Nov-19 0.980%1.130%1.110%1.130%1.170%1.250%1.260%1.280% 1.350%1.250%1.475%1.375%1.250%1.475%1.550%1.600% 3133EHHN6 313379DT3 3137EAEH8 313380FB8 3137EADM8 3137EADM8 3130ACLS1 3133EHP98 0.00 2,465.01 18,422.28 500,000.00 250,985.36 194,005.33 62,116.76 712,932.38 998,788.00 253,649.76 222,485.85 101,359.55 0.00 500,000.00 300,000.00 200,000.00 200,000.00 1,000,000.00 500,000.00 1,000,240.00 513,360.00 700,000.00 364,300.00 $1,000,000.00 $1,000,240.00 $500,000.00 $1,000,000.00 $998,788.00 $896,082.28 $2,200,000.00 $1,000,000.00 $0.00 $996,640.00 $497,207.00 $995,886.00 $996,011.00 $893,386.80 $1,189,263.60 $993,135.00 $1,000,000.00 $1,000,000.00 $500,000.00 $1,000,000.00 $1,000,000.00 $900,000.00 $2,200,000.00 $1,000,000.00 26,962.89 11,575.34 15,053.08 28,065.07 25,616.44 26,149.93 66,793.50 32,000.00 43,041.00 43,077.00 43,146.00 43,172.00 43,192.00 43,021.00 43,034.00 43,045.00 6,749.97 6,250.00 3,934.03 6,875.00 6,242.43 6,608.61 17,048.69 8,000.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 $6,750.00 $5,486.11 $3,704.86 $6,875.00 $11,875.00 $6,264.86 $17,048.69 $8,000.00 INVESTMENT DATE ACQUIRED MATURITY DATE 26 WEEK T-BILL AUCTION DISCOUNT/WEEK OF PURCHASE YIELD TO MATURITY CUSIP# ACCOUNT ALLOCATION OF INVESTMENT 001-1172 GENERAL FUND OPERATING 002-1166 UTILITY DEBT SERVICE RESERVE 002-1172 UTILITY FUND OPERATING 002-1178 CUSTOMER DEPOSITS 039-1186 UTILITY LINE RENEWAL 039-1557 THE RESERVE LIFT STATION 003-1121 INV-PERIMETER FEES 003-1307 INV-ROAD RECONSTRUCTION 003-1340 CASTLETON MANOR 005-1172 VOLUNTARY PARK FUND 011-1172 LIBRARY DONATIONS FUND 012-1172 PARK LAND DEDICATION FUND 017-1172 DRAINAGE FUND OPERATING 024-1172 CEDC OPERATING 026-1172 TIF OPERATING 032-1519 CAPITAL EQUIPMENT RESERVE 034-1172 COLLEYVILLE TOMORROW PER GENERAL LEDGER MARKET VALUE VALUE AT MATURITY INTEREST RECEIVED TO MATURITY DATE OF LAST INTEREST PAYMENT INTEREST TO ACCRUE FOR PERIOD TOTAL DAYS OUTSTANDING/OR INTEREST PERIOD DAYS OUTSTANDING IN FISCAL YEAR/INTEREST PERIOD ACCRUED INTEREST FFCB NOTE FFCB NOTE FFCB NOTE FHLB NOTE 08-Dec-17 29-Dec-17 14-Feb-18 07-Mar-18 21-Nov-19 18-Nov-19 14-Feb-20 11-Feb-20 1.420%1.500%1.770%1.830% 1.750%1.800%2.070%2.240% 3133EHV75 3133EGJ30 3133EJCN7 3130ADN32 0.00 255,571.93 1,000,000.00 37,833.62 0.00 503,143.19 951,092.86 246,567.66 32,110.05 250,000.00 710,000.00 $749,710.85 $1,238,774.84 $1,000,000.00 $997,833.62 $750,300.00 $1,198,252.80 $1,000,673.00 $1,000,261.00 $750,000.00 $1,255,000.00 $1,000,000.00 $1,000,000.00 25,638.70 42,642.49 41,400.00 43,327.12 43,077.00 43,098.00 43,145.00 43,166.00 6,559.97 11,148.97 10,350.00 11,175.74 182.00 182.00 182.00 182.00 182.00 182.00 182.00 182.00 $6,559.97 $11,148.97 $10,350.00 $11,175.74 FUND ALLOCATION CDAR#BANK AMOUNT PURCHASE DATE MATURITY DATE INTEREST RATE INTEREST EARNED DURING QUARTER INTEREST RECEIVED TO MATURITY UTILITY FUND 1020424784 INDEPENDENT BANK $512,403 7/27/2017 7/25/2019 0.40%$505 $4,088 GENERAL FUND 1019169355 INDEPENDENT BANK $510,929 6/23/2016 6/21/2018 0.40%$504 $4,076 GENERAL FUND 1019453738 WORTHINGTON BANK $1,534,117 9/21/2017 9/20/2018 0.60%$2,263 $9,152 GENERAL FUND 1019452073 INDEPENDENT BANK $510,048 9/22/2016 9/20/2018 0.50%$629 $5,087 CAPITAL PROJECTS 1020604677 INDEPENDENT BANK $508,787 9/21/2017 9/19/2019 0.58%$728 $5,886 PURCHASED DURING THIS QUARTER NA $0 $0 OUTSTANDING CDARS AS OF THE END OF THE QUARTER 3,576,284 $4,629 $28,289 MATURED DURING THIS QUARTER GENERAL FUND 1020009477 INDEPENDENT BANK $509,806 3/23/2017 3/22/2018 0.30%$339 $1,525 GENERAL FUND 1018875612 INDEPENDENT BANK $504,999 3/24/2016 3/22/2018 0.50%$560 $5,036 CDARS MATURED DURING THE QUARTER 1,014,805 $900 $6,561 GRAND TOTAL 4,591,089 5,528 34,850 CDARS CERTIFICATES OF DEPOSIT FUND ALLOCATION CUSIP#BANK PRINCIPAL PURCHASE DATE MATURITY DATE INTEREST RATE INTEREST EARNED DURING QUARTER INTEREST RECEIVED TO MATURITY NA $0 $0 PURCHASED DURING THIS QUARTER GENERAL FUND 17312QH51 CITIBANK $248,000 3/29/2018 3/30/2020 2.50%$34 $12,434 GENERAL FUND 61747MR78 MORGAN STANLEY BANK $248,000 3/29/2018 3/30/2020 2.55%$35 $12,683 OUTSTANDING CD'S AS OF THE END OF THE QUARTER $496,000 $69 $25,117 MATURED DURING THIS QUARTER NA $0 $0 CD'S MATURED DURING THE QUARTER $0 $0 $0 GRAND TOTAL 496,000 69 25,117 CERTIFICATES OF DEPOSIT (CD's) DESCRIPTION BALANCE GENERAL FUND LOGIC POOL- OPERATING CASH $418,245 UTILITY FUND LOGIC POOL- OPERATING CASH $2,702,713 UTILITY FUND - CAPITAL PROJECTS LOGIC POOL- WATER IMPACT FEES $2,284,119 LOGIC-RES CASH-UTILITY LINE RE $1,174 LOGIC - WW IMPACT FEES $676,708 CAPITAL PROJECTS FUND LOGIC POOL-ROADS SA I CASH $21,688 LOGIC-CAPITAL PROJ/STREET RESU $1,865,160 DEBT SERVICE FUND LOGIC POOL- OPERATING CASH $34,653 DRAINAGE FUND LOGIC POOL- OPERATING CASH $1,381,442 LOGIC- I&S FUND/DRAINAGE $122,378 LOGIC-2001 DRAINAGE BONDS $2,380 TIF FUND LOGIC POOL- OPERATING CASH $11,529,448 LOGIC-2001 TIF BONDS/CITY HALL $114,995 CCCPD FUND LOGIC POOL- OPERATING CASH $777,992 LOGIC - 99 CO BONDS $83 LOCAL GOVERNMENT INVESTMENT COOPERATIVE / "LOGIC" ACCOUNT ALLOCATION AT MARCH 2018 LOCAL GOVERNMENT INVESTMENT COOPERATIVE / "LOGIC" ACCOUNT ALLOCATION AT MARCH 2018 CAPITAL EQUIPMENT REPLACEMENT FUND LOGIC POOL- OPERATING CASH $83,773 COLLEYVILLE TOMORROW FUND LOGIC POOL- OPERATING CASH $1,706,844 PARKS TOMORROW FUND LOGIC POOL- OPERATING CASH $1,038,882 STRATEGIC INITIATIVES FUND LOGIC POOL- OPERATING CASH $495,497 Subtotal - LOGIC balances excluding CEDC $25,258,174 CEDC Logic Balance LOGIC POOL- OPERATING CASH $956,621 LOGIC - 97 BONDS $65,091 Total LOGIC Balance $26,279,886 INTEREST EARNED THIS QUARTER $104,205 NewsPerformance In Memoriam We are saddened at the passing of LOGIC Board member Judd Sanderson. Judd served as a LOGIC Governing Board member since 2002 and was the Deputy Director for the North Texas Municipal Water District. Judd attended Abilene Christian University and Harding University receiving a Bachelor of Business Administration in Accounting. He had previously been employed by Dallas Market Center and Upper Trinity Regional Water District. Judd was a dedicated board member and good friend who will be greatly missed. Our thoughts and prayers are with his family. Conferences LOGIC Representatives look forward to visiting with those of you attending these upcoming conferences. GFOAT 2018 Spring Conference - April 15-17, Austin County Treasurers Continuing Education Conference - April 17-19, San Marcos LOGIC Newsletter March 2018 Economic Commentary Synchronized global growth continued in the fi rst quarter, but with the added excitement of increased market volatility. In spite of the generally positive economic backdrop, fears of runaway infl ation, rising interest rates, and continued political noise from Washington led to a sharp selloff in global equities. The quarter closed as one of the weaker starts to the year for both credit and equities. During the course of the quarter, fears of a trade war came into focus. Potential tariffs by the US, fi rst on steel and aluminum imports caused the Chinese to respond by announcing potential tariffs on $3BN worth of goods ranging from agricultural products to steel pipes, as well as the EU to respond by announcing potential tariffs on US imports Harley Davidson, Levi’s and bourbon whiskey. Later, the US exempted several allies from the steel and aluminum tariffs, but suggested it may impose quotas. Following the initial steel and aluminum tariffs, the US continued by announcing potential tariffs on as much as $50 billion of Chinese imports in a wide variety of categories which were countered by the Chinese announcing 25% tariffs on $50 billion of various US goods. In Washington, Congress approved a federal budget incorporating substantial fi scal stimulus, which would add $300 billion to the defi cit over the next two years. The increase in U.S. government debt issuance needed to fund the tax cuts and increase in spending, combined with the unwinding of the Fed’s balance sheet, is expected to put upward pressure on rates. The front end of the curve was hit by a large issuance of Treasury bills as well as the likelihood that there would be four rate hikes this year by the Federal Reserve Open Market Committee (FOMC), rather than the three previously telegraphed, increased as expansionary fi scal policy in a late-stage business cycle builds a stronger case for higher infl ation going forward. Jay Powell became Chair of the Federal Reserve (Fed) and in his fi rst offi cial FOMC meeting in March raised rates by 25 bps to 1.50%-1.75%, a move that widely expected by market participants. The Fed increased expectations to three rates hikes in 2019 and two hikes in 2020. Growth forecasts were upgraded for both 2018 and 2019 to refl ect the impact of fi scal stimulus, unemployment rate estimates were brought down through 2020, while infl ation forecasts were revised higher in 2019 and 2020. Firming U.S. infl ation along with strong growth, U.S. fiscal expansion, as well as less accommodative policy stance from central banks caused Treasury yields to steadily rise. This information is an excerpt from an economic report dated March 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 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, 2018 Current Invested Balance $6,902,175,938.22 Weighted Average Maturity (1)* 27 Days Weighted Average Maturity (2)* 69 Days Net Asset Value 0.999705 Total Number of Participants 563 Management Fee on Invested Balance 0.0975% Interest Distributed $10,861,177.82 Management Fee Collected $582,576.15 % of Portfolio Invested Beyond 1 Year 0.00% Standard & Poor’s Current Rating AAAm March Averages: Average Invested Balance $7,027,703,959.40 Average Monthly Yield, on a simple basis 1.7228% Average Weighted Average Maturity (1)* 28 Days Average Weighted Average Maturity (2)* 71 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 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 Sep 17 1.2827% 5,995,123,374.79 5,995,667,106.47 1.000070 40 77 551 Aug 17 1.2660% 5,912,248,825.24 5,912,933,387.09 1.000115 32 70 548 Jul 17 1.2408% 6,097,733,914.84 6,098,596,876.56 1.000141 29 71 543 Jun 17 1.1333% 5,904,028,106.60 5,904,946,555.34 1.000122 25 75 539 May 17 1.0761% 6,257,671,308.91 6,259,334,715.43 1.000265 27 71 535 Apr 17 1.0739% 6,573,201,990.89 6,574,453,965.11 1.000190 32 69 528 Assets Book Value Market Value Uninvested Balance $ (593,715.48) $ (593,715.48) Accrual of Interest Income 2,836,135.59 2,836,135.59 Interest and Management Fees Payable (10,969,352.72) (10,969,352.72) Payable for Investment Purchased 0.00 0.00 Receivable for Investment Sold 0.00 0.00 Repurchase Agreements 178,930,000.00 178,930,000.00 Commercial Paper 6,731,972,870.83 6,730,132,959.05 Government Securities 0.00 0.00 Total $ 6,902,175,938.22 $ 6,900,336,026.44 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, 2018 Repurchase Agreements 2.59% 8 to 30 days 32.57% 1 to 7 days 38.48% 31 to 90 days 24.70% Utility District 15.46% Other 7.10% School District 36.23% Health Care 1.60% County 9.77% Higher Education 2.84% City 27.00% Distribution of Participants by Type As of March 31, 2018 Portfolio by Type of Investment As of March 31, 2018 Portfolio by Maturity As of March 31, 2018 91 to 180 days 4.25% Commercial Paper 97.41% Mny Mkt Fund Daily Allocation LOGIC Invested Market Value WAM WAM Date Equiv. [SEC Std.] Factor Balance Per Share Days (1)* Days (2)* 3/1/2018 1.6370% 0.000044849 $7,191,414,505.64 0.999956 28 75 3/2/2018 1.6381% 0.000044880 $7,150,876,896.59 0.999879 28 72 3/3/2018 1.6381% 0.000044880 $7,150,876,896.59 0.999879 28 72 3/4/2018 1.6381% 0.000044880 $7,150,876,896.59 0.999879 28 72 3/5/2018 1.6510% 0.000045234 $7,140,328,720.59 0.999950 29 73 3/6/2018 1.6506% 0.000045221 $7,121,475,234.78 0.999966 30 73 3/7/2018 1.6609% 0.000045505 $7,103,294,264.43 0.999966 30 73 3/8/2018 1.6673% 0.000045679 $7,107,714,115.05 0.999985 31 73 3/9/2018 1.6783% 0.000045982 $7,055,342,953.60 0.999926 30 73 3/10/2018 1.6783% 0.000045982 $7,055,342,953.60 0.999926 30 73 3/11/2018 1.6783% 0.000045982 $7,055,342,953.60 0.999926 30 73 3/12/2018 1.6799% 0.000046025 $7,052,713,710.20 0.999966 29 72 3/13/2018 1.6863% 0.000046199 $7,054,181,173.76 0.999966 29 72 3/14/2018 1.6854% 0.000046175 $7,038,738,716.75 0.999952 28 72 3/15/2018 1.6904% 0.000046312 $7,001,575,366.79 0.999967 28 71 3/16/2018 1.6954% 0.000046449 $6,998,375,950.75 0.999919 25 69 3/17/2018 1.6954% 0.000046449 $6,998,375,950.75 0.999919 25 69 3/18/2018 1.6954% 0.000046449 $6,998,375,950.75 0.999919 25 69 3/19/2018 1.7100% 0.000046849 $6,983,531,560.91 0.999958 27 69 3/20/2018 1.7334% 0.000047491 $6,950,599,203.40 0.999943 27 70 3/21/2018 1.7377% 0.000047608 $6,957,325,055.81 0.999921 27 69 3/22/2018 1.7721% 0.000048551 $7,043,611,465.72 0.999892 26 68 3/23/2018 1.7912% 0.000049073 $6,994,807,927.79 0.999801 28 69 3/24/2018 1.7912% 0.000049073 $6,994,807,927.79 0.999801 28 69 3/25/2018 1.7912% 0.000049073 $6,994,807,927.79 0.999801 28 69 3/26/2018 1.8186% 0.000049825 $6,966,978,521.55 0.999837 28 71 3/27/2018 1.8181% 0.000049811 $6,964,962,346.04 0.999813 28 71 3/28/2018 1.8461% 0.000050577 $6,875,639,779.09 0.999804 30 73 3/29/2018 1.8510% 0.000050713 $6,902,175,938.22 0.999705 27 69 3/30/2018 1.8510% 0.000050713 $6,902,175,938.22 0.999705 27 69 3/31/2018 1.8510% 0.000050713 $6,902,175,938.22 0.999705 27 69 Average 1.7228% 0.000047200 $7,027,703,959.40 28 71 Daily RatesDaily Summary for March 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 90 Day T-BILL Rate LOGIC Rate ContactsFor more information contact LOGIC Participant Services  1-800-895-6442  www.logic.orgLOGIC BoardLOGIC Board Members Philip G. Roberson Arlington ISD Board President Fred L. Werner Municipal Finance Director Board Vice President Judd R. Sanderson North Texas Municipal Water District Board Treasurer / Investment Offi cer Sandra Newby Tarrant Regional Water District Board Member Greg Jordan City of Grapevine Board Member LOGIC Participant ServicesHilltop Securities Inc. 1201 Elm Street, Suite 3500Dallas, TX 75270 EYE ON THE ECONOMY Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 28, 2018 Page 1 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 28, 2018 Page 2 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 28, 2018 Page 3 of 4 Federal Reserve Bank of Dallas Dallas-Fort Worth Economic Indicators | March 28, 2018 Page 4 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 26, 2018 Page 1 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 26, 2018 Page 2 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 26, 2018 Page 3 of 4 Federal Reserve Bank of Dallas Texas Economic Indicators | March 26, 2018 Page 4 of 4 1 Federal Reserve Bank of Dallas U.S. Economic Update U.S. Economic Outlook Improves in First Quarter March 23, 2018 The U.S. economic outlook has slightly improved since January, owing to strong gross domestic product (GDP) and employment growth. Forecast GDP growth has ticked higher as recent changes to federal tax law have provided fiscal stimulus. Inflation expectations have remained firmly anchored, with inflation gradual- ly rising in recent months. Real GDP Continues Expansion at Year-End 2017 The second release of real (inflation-adjusted) GDP growth in fourth quarter 2017 stood at 2.5 percent, down from the initial release of 2.6 percent. Improving personal consumption expenditures (PCE) and residen- tial/nonresidential investment contributed the most to overall GDP growth, while private inventories and net exports were restraining influences (Chart 1). Of concern for first-quarter growth are relatively weak releases of real PCE and real retail sales. Real PCE de- clined 1.7 percent on an annualized basis during Janu- ary, a sharp contrast from a 3 percent gain in Decem- ber, while real retail sales growth slumped to 0.1 per- cent in February, below consensus estimates. This weakness explains why the Atlanta Fed’s GDP Nowcast for first-quarter growth is low. However, both PCE and retail sales are likely to improve in February and March as some consumers begin receiving tax refunds. Survey-based indicators for investment and consump- tion remain buoyant. The Institute for Supply Manage- ment (ISM) manufacturing composite index rose from 59.1 in January to 60.8 in February, while the non- manufacturing composite index declined from 59.9 to 59.5. A reading above 50 indicates expansion. Chart 2 shows ISM nonmanufacturing values since 2014, with the last two months (highlighted in red) at relatively high levels. The three-month moving average is also rising. The Conference Board’s Consumer Confidence Index continues increasing, reaching 130.8 in February from 124.3 in January. February’s value is the highest since November 2000. The University of Michigan’s Consum- er Sentiment Index also increased, from 99.7 in Febru- ary to 102.0 in March, both relatively high readings. Overall, these indicators point to optimism about fu- ture growth. Looking forward, real GDP growth is expected to in- crease each quarter this year, with forecasts moving higher. Chart 3 shows recent GDP growth on a yearly basis and comparisons to recent Survey of Professional Forecasters (SPF) releases. The SPF’s latest release in February of 2.8 and 2.5 percent year-over-year growth in 2018 and 2019, respectively, reflects an upward revision from November’s 2.5 and 2.1 percent. On a quarterly basis, the SPF’s latest report in February predicts real GDP growth will reach 3.0 percent in first quarter 2018 and 2.9 percent in second quarter 2018. 2 Federal Reserve Bank of Dallas U.S. Economic Update Solid Employment Growth Payrolls increased by 313,000 in February, the latest employment report shows (Chart 4). The result ex- ceeds consensus estimates, with the headline unem- ployment (the U-3 rate) remaining at 4.1 percent. The broader U-6 rate, which includes discouraged workers, other marginally attached workers and those working part time for economic reasons, remained at 8.2 percent. The labor force participation rate ticked upward, from 62.7 percent to 63 percent, but demo- graphic developments imply a gradual softening in coming years. The latest SPF release forecasts unem- ployment to decline further to 3.8 percent in 2019— levels last seen in early 2000. Despite the strong employment report, wage growth is still only softly trending upward. Both the Atlanta Fed’s wage growth tracker and the noisier average-hourly- earnings measure have moved slightly higher but re- main below pre-Great Recession rates. On a year-over-year basis, the wage growth tracker increased from 2.9 percent in December to 3.0 percent in January, while average hourly earnings declined slightly, from 2.8 percent in January to 2.6 percent in February. In contrast, the wage growth tracker grew 4.3 percent in March 2007, prior to the Great Recession, while aver- age hourly earnings increased 3.4 percent. Inflation Bottoming Out Although most inflation measures remain below the Federal Reserve’s 2 percent target, recent releases have suggested that inflation has bottomed out and will trend toward the target rate. Core Consumer Price Index (CPI) inflation, which excludes food and energy, was little changed at 1.9 percent on a year-over-year basis in February (Chart 5). Core PCE inflation was unchanged at 1.5 percent in January on a year-over-year basis. Meanwhile, the Federal Reserve Bank of Dallas’ Trimmed Mean PCE year-over-year inflation measure was also unchanged, at 1.7 percent. Overall, Chart 5 shows that inflation will likely increase. Inflation expectations remain largely unchanged since January’s Federal Open Market Committee meeting. The SPF forecasts core PCE inflation to reach the Fed’s 2 percent target by 2019, while the implied five-year/ five-year-forward (expected average inflation over the five-year period that begins five years from now) CPI inflation rate stands at 2.3 percent, up from the previ- ous forecast of 2.2 percent in November. The five- year/five-year-forward Treasury inflation-protected securities (TIPS) breakeven inflation rate, a market- based measure of expected inflation, stood at 2 per- cent as of March 19, little changed from January. —Daniel Chapman ……………………………………………………………………………………….. About the Author Chapman is a research assistant in the Research De- partment at the Federal Reserve Bank of Dallas. City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number Agenda Date 05/01/2018 Number Type Presentation and Discussion Department Finance Title Update on future discussion items and initiatives Explanation Staff will provide an update on anticipated future discussion items and initiatives that are planned for later this year, which may be brought to the Audit Committee for discussion. Attachments