HomeMy WebLinkAboutColleyville Economic Development Corporation (CEDC)-Agenda Packets-8/28/2012~'~ ~~ City of Colleyville City Hall
COLLEY'~JILLE 100 Main Street
Colleyville, Texas 76034
f r~~~ Colleyville Economic 817. 503.1000
www.colleyville.com
Development Corporation
Boa rd
Agenda
Tuesday, August 28, 2012 City Council Chambers
7:00 p.m. Third Floor, City Hall
1. CALL TO ORDER
2. CONSENT: READING AND PUBLIC HEARING - Resolution R-12-117
2a Approval of the minutes of the Colleyville Economic Development
Corporation Board of Directors meeting of August 23, 2011
2b Approval of the minutes of the Colleyville Economic Development
Corporation Board of Directors meeting of August 14, 2012
2c Approval of a Pledge Agreement with the Federal Reserve Bank of Boston for
bank depository collateral
3. RESOLUTION(S): READING AND PUBLIC HEARING
3a Resolution R-12-118
Adopting the Economic Development Capital Improvement Program (EDCIP)
for FY 2013-2017
3b Resolution R-12-119
Adopting the Fiscal Year 2013 (FY 2013) Budget
3c Resolution R-12-120
Replacing Resolution R-03-59 to update the Colleyville Economic
Development Corporation's, (CEDC) Investment Policy
3d Resolution R-12-121
Approval of Colleyville Economic Development Corporation (CEDC)
authorized depository signatures
3e Resolution R-12-122
Appointing a Colleyville Economic Development Corporation Board President
and Vice President
4. REPORTS
4a Annual Activity Report
4b Annual Investment Report
Colleyville Economic
Development Corporation Agenda August 28, 2012
5. ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday, August 24,
2012, by 5:00 p.m.
Cynthia Singleton, TRMC, CMC
City Secretary
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 the Executive Secretary at least 48 hours in advance at
817.503.1110, and reasonable accommodations will be made to assist you.
RESOLUTION R-12-117
A RESOLUTION APPROVING ACTION
UNDER CONSENT ITEMS AT THE COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION BOARD MEETING OF
AUGUST 28, 2012
WHEREAS, the Board has taken action on certain items on the agenda under
Consent items.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT the agenda decisions approved by the Economic
Development Corporation Board of Directors' action under Consent
items as follows are hereby adopted:
a. THAT the minutes of the Colleyville Economic Development
Corporation Board of Directors' meeting held August 23, 2011, are
hereby approved.
b. THAT the minutes of the Colleyville Economic Development
Corporation Board of Directors' worksession held August 14, 2012,
are hereby approved.
c. THAT the Pledge Agreement with the Federal Reserve Bank of
Boston for bank depository collateral, is hereby approved.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, THIS August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
`~~';~;~,~.. City of Colleyville
~;~~~ ~~,~~~,:u
M i n utes - D raft
Economic Development Corporation
Boa rd
City Hall
100 Main Street
Colleyville, Texas 76034
817. 503.1000
www.colleyville.com
Tuesday, August 23, 2011
6:30 PM
City Council Chambers
The Colleyville Economic Development Corporation Board of Directors
meeting was called to order by President David Kelly on August 23,
2011, at 6:34 p.m.
2.
2a
2b
2c
ROLL CALL: Directors Tom Hart, Carel Tornes and Vice President
Carol Wollin were present. President David Kelly, General Manager
Jennifer Fadden, Finance Manager Terry Leake, Economic
Development Director Marty Wieder, Library Director Mary Rodne,
Colleyville Center Manager Lin Przybyl, Finance Manager Karen
Hines and City Secretary Cynthia Singleton were also present.
Directors Sue Kijowski, Greg Appel and Stan Hall were absent.
CONSENT: READING AND PUBLIC HEARING - Resolution R-11-113
Approval of the minutes of the Colleyville Economic Development
Corporation Board of Directors' meeting of August 24, 2010
Approval of the minutes of the Colleyville Economic Development
Corporation Board of Directors' meeting of August 11, 2011
Approval of the annual review of the Colleyville Economic Development
Corporation's Investment Policy
President Kelly read Resolution R-11-113 in its entirety.
President Kelly opened the public hearing.
There was no one present wishing to speak and President Kelly closed
the public hearing.
Director Hart moved to approve Resolution R-11-113.
Director Tornes seconded the motion.
The motion carried by the following vote:
Aye: 4- Carol Wollin, Carel Tornes, Tom Hart, David Kelly
Absent: 3- Greg Appel, Stan Hall, Sue Kijowski
City of Colleyville Page 1 Printed on 8/22/2012
Economic Development Minutes - Draft August 23, 2011
Corporation Board
3. RESOLUTION(S):
READING AND PUBLIC HEARING
3a R-11-114 Adopting the Economic Development Capital Improvement Program
(EDCIP) for FY 2012-2016
President Kelly read Resolution R-11-114 in its entirety.
Finance Manager Terry Leake reviewed the Economic Development
Capital Improvement Program (EDCIP) for FY 2012 to 2016, which
includes a projection of sales tax growth through the next five years; the
carry forward of funding for the Pleasant Run Trail design; an allocation
of $78,566 for the purchase of technology, furniture, fixtures, and
equipment for the library second floor expansion project, and the teen
room and the first floor adult area and staff work area; and the
replacement of the RFID equipment for library material check-out. Ms.
Leake further stated the $134,905 balance of the Senior Center Open
Area Phase I remains allocated to a future parks project pending the
completion of the Parks Master Plan in FY 2012. FY 2013 includes the
carry forward of funds for the Cotton Belt II spur at the Webb House and
funding for the replacement of tables at the Colleyville Center. FY 2014
includes an increase to $400,000 for the future projects category. FY
2012 includes an increase to $370,00 for future projects allocation and
funding for the replacement of chairs at the Colleyville Center. The FY
2016 future projects allocation is $400,000.
President Kelly opened the public hearing.
There was no one present wishing to speak and President Kelly closed
the public hearing.
Library Director Mary Rodne provided information regarding the library
teen and adult area finish out, and enhancements to the staff work areas
and technology stations, and answered questions of the Board.
Discussion ensued regarding the library resources and services.
Director Wollin moved to approve Resolution R-11-114.
Director Hart seconded the motion.
The motion carried by the following vote:
Aye: 4- Carol Wollin, Carel Tornes, Tom Hart, David Kelly
Absent: 3- Greg Appel, Stan Hall, Sue Kijowski
City of Colleyville Page 2 Printed on 8/22/2012
Economic Development Minutes - Draft August 23, 2011
Corporation Board
3b R-11-115 Adopting the Fiscal Year 2012 (FY 2012) Budget
President Kelly read Resolution R-11-115 in its entirety
President Kelly opened the public hearing.
There was no one present wishing to speak concerning this item and
President Kelly closed the public hearing.
Finance Manager Terry Leake provided an overview of the Colleyville
Economic Development Corporation FY 2012 budget and answered
questions of the Board.
Director Tornes moved to approve Resolution R-11-115.
President Kelly seconded the motion.
The motion carried by the following vote:
Aye: 4- Carol Wollin, Carel Tornes, Tom Hart, David Kelly
Absent: 3- Greg Appel, Stan Hall, Sue Kijowski
3c R-11-116 Appointing a Colleyville Economic Development Corporation (CEDC)
Board President and Vice President
President Kelly read Resolution R-11-116 in its entirety.
President Kelly opened the public hearing.
There was no one present wishing to speak and President Kelly closed
the public hearing.
Director Hart nominated Director Kelly for President and Director Wollin
for Vice President of the Economic Development Corporation.
There were no other nominations.
Director Hart moved to approve Resolution R-11-116 appointing Director
Kelly as President and Director Wollin as Vice President of the Economic
Development Corporation.
President Kelly seconded the motion.
City of Colleyville Page 3 Printed on 8/22/2012
Economic Development Minutes - Draft August 23, 2011
Corporation Board
The motion carried by the following vote:
Aye: 4- Carol Wollin, Carel Tornes, Tom Hart, David Kelly
Absent: 3- Greg Appel, Stan Hall, Sue Kijowski
President Kelly expressed appreciation to the Board for their confidence.
4. REPORT(S):
4a Annual Activity Report
There was no discussion of this item.
4b Annual Investment Report
There was no discussion of this item.
5. ADJOURNMENT
There being no further business before the Economic Development
Corporation, President Kelly adjourned the meeting.
APPROVED BY A VOTE OF AYES, NAYS, AND
ABSTENTIONS ON THIS THE 28TH DAY OF AUGUST 2012.
Minutes taken and prepared by:
Cynthia Singleton, TRMC, CMC
City Secretary
City of Colleyville Page 4 Printed on 8/22/2012
~`T Y °F City of Colleyville
~ City Hall
COLLEYVILLE 100 Main Street
Colleyville, Texas 76034
~ F~., ~ Colleyville Economic 817. 503.1000
www.colleyville.com
Development Corporation
Board Worksession
Minutes - Draft
Tuesday, August 14, 2012 Executive Conference Room
7:00 p.m. Third Floor, City Hall
The Colleyville Economic Development Corporation Board was called to order by
President David Kelly on August 14, 2012, at 7:03 p.m.
ROLL CALL: Directors Stan Hall, Mark Slosson, Carel Tornes, and Vice President
Carol Wollin were present. President David Kelly, General Manager Jennifer Fadden,
Finance Manager Terry Leake, Economic Development Director Marty Wieder, Parks
Superintendent Tim Hightshoe, Public Works Director Bob Lowry, Library Director
Mary Rodne, Strategic Services Manager Eric Ellwanger, Colleyville Center Manager
Lin Przybyl, and Assistant City Secretary Christine Loven were also present.
Directors Tom Hart and Timothy Mark Kelso were absent.
2. PRESENTATION AND DISCUSSION
2a Colleyville Economic Development Corporation (CEDC) Fiscal Year 2012 (FY
2012) budget update
Finance Manager Terry Leake provided an update of the Colleyville Economic
Development Corporation (CEDC) Fiscal Year 2012 (FY 2012) budget and answered
questions of the Board.
Ms. Leake stated the FY 2012 beginning fund balance was higher, as sales tax
revenues exceeded projections in the last months of FY 2011 and with three-quarters
of FY 2012 complete; sales tax revenues have totaled $1,045,570, which is 7.59%
above FY 2011 tax revenues at the same time.
In reviewing the FY 2012 budget, Finance Manager Leake explained that at the end of
FY 2012, the design of the Bogart Drive to Mission Lane segment of the Pleasant Run
Trail will not be completed and the acquisition of right-of-way (ROW) will not occur
until completion of design. She further explained the funds allocated to future parks
projects would not be spent; however, the budgeted funds will be reallocated to the
same projects in the proposed FY 2013 budget. Available cash is also being budgeted
in the proposed budget.
Colleyville Economic
Development Corporation Minutes - Draft
August 14, 2012
Discussion of available cash, the required coverage ratio, and projects to be moved
forward into 2013 ensued.
2b Discussion of the FY 2013 - 2017 Economic Development Capital Improvement
Program (EDCIP) priorities
Finance Manager Terry Leake stated the CEDC bylaws require the Board to develop
an Economic Development Capital Improvement Program (EDCIP), to address long
and short-term development goals and City needs.
Finance Manager Leake highlighted the proposed EDCIP for FY 2013-2017, noting
projection of sales tax growth remains conservative. Planned expenditures include
carry forward funding for incomplete FY 2012 projects including the right-of-way
acquisitions, Pleasant Run Trail design, construction of the Pleasant Run Trail and
Cotton Belt II spur, and future parks projects. Additional projects incorporated into
the EDCIP include replacement tables and chairs at Colleyville Center and the Senior
Center, replacement of the flat roof at Colleyville Center, a rebranding study, and
renovations for the Senior Center. Additionally, Ms. Leake reviewed the proposed FY
2013 promotional budget, which provides funding for the Colleyville CloseBuy and
Come to Colleyville programs, and City sponsored special events to include the Old
Tyme BBQ, Red, White, & Sousa, and Holly Colley.
Finance Manger Leake then reviewed the future projects category monetary increases
for the years 2014 through 2017, and stated the category allows for planned needs
for City facilities such as the Library, Senior Center, Colleyville Center, and trails.
Discussion included moving funding for the air conditioner replacement at Colleyville
Center from the FY 2015 budget to the FY 2013 budget.
The Board requested the proposed FY 2013 budget be revised to include the air
conditioner replacement.
Discussion ensued regarding funding for Texas Night Out, Senior Center, Library
staffing, and hours of operation at the Senior Center.
City Manager Jennifer Fadden stated the Senior Center staffing and hours of
operation will be reviewed following the rebranding study, and a library staffing
review will be provided to the Board, as the last staffing study was performed in
2000, and since that time, there has been a significant investment in the use of
automated equipment.
Economic Development Director Marty Wieder provided information regarding the
Colleyville CloseBuy Program introduction and components.
Colleyville Economic
Development Corporation Minutes - Draft August 14, 2012
3. ADJOURNMENT
There being no further business before the Colleyville Economic Development
Corporation Board, President Kelly adjourned the meeting at 7:48 p.m.
APPROVED BY A VOTE OF AYES,
ABSTENTIONS ON THIS THE DAY OF
Minutes taken and prepared by:
NAYS, AND
2012.
Christine Loven
Assistant City Secretary
`'~ Y °F City of Colleyville
~
COLLEYVILLE Colleyville Economic
,. F ~ a ; Development Corporation
Board
Agenda Briefing
City Hall
100 Main Street
Colleyville, Texas 76034
www.colleyville.com
Agenda Number Zc Agenda Date 08/28/2012 Number Resolution R-1Z-117
Type Resolution
Department Citv Manager
Title
Approval of a Pledge
depository collateral
Agreement with the Federal Reserve Bank of Boston for bank
Explanation
Reading and Pub/ic Hearing
As a part of depository services for a public entity, a bank must provide collateral for
all public deposits above the statutory Federal Deposit Insurance Corporation limit.
Currently, the Corporation has an agreement with the Federal Reserve Bank of Boston,
which holds the collateral pledged by the Corporation's depository bank, Wells Fargo,
for the Corporation's funds. Periodically, the Federal Reserve Bank of Boston requires
the Corporation to update the agreement. Attached is the updated Pledge Agreement
with the Federal Reserve Bank of Boston for the collateral that safeguards the
Corporation's deposits.
Financial Impact
There is no cost associated with the agreement by the Federal Reserve Bank of Boston.
Recommendation
Approve
Attachments
1. Pledgee Agreement Form
Pledgee Agreement Form
To: Federal Reserve Bank of Boston Tel: 800-327-0147, Option #4
600 Atlantic Avenue Fa~: 877-973-8972
Boston, MA 02210
Attn: Wholesale Operations/Joint Custody Date; 08/28/12
We. the Colleyville Economic Development Corporation agree to the ter~ns of Appendix C of vour Opet'utzng Czt'culuN 7,
dated August 19, 200~, as it ina~- be ainended from tiine to tiine ~~ith respect to the account on ~rour boolcs designated
K3HX .(~ digit alpha-numeric account nuinber)
We further agree that ~-ou ina~- accept par for par substitutions: securities from the Pledgor as a replaceinent of, or in
substitution for, those securities presentl~- held (please checlc one):
~ NO (I~7sti~uctions required for ~ YES (Standing approval)
each ~vithdra~val)
Provided that the replacement or substitution does not reduce the ag~regate par ainount of secl~rities held in custod~- for us.
(See Operuting Circular 7, Appendix C, Section ~ 3.)
We authorize ~-ou to use the follo~ii~ig call-baclc procedure for securities transactions pertaini~ig to this account (please
checlc one):
~ Three-part~- call-baclc ~ Four-part~- call-back
We certifv that the individuals listed belo~~ ma~T take authoritative action on our behalf «~ith respect to the account,
including a direction to release collateral from the account. You ina~- re1~- on the authorit~- of these individuals ~vith respect to
the account until «e othei~vise notifi~ ~~ou.
Telephone: ~817) 503-1 1 15 Print Name: T21"-"y L2ak2 Title: Finance Manager
Fai: (817) 503-1129
Signahire: 8/28/12
Date: _
Telephone: (817) 503-1015 Karen Hines
Print Name: Finance Manager
Title: city of coueyviue
F,11: (817) 503-1019 sib~~anue: Date: 8~28~~ 2
Telephone: ~817) 503-1 1 16 PrintNaine: Jennlfet' Fadden Title: General Manager
Fai: (817) 503-1129 Sigi~~nue: Date: 8~28~~ 2
REV O1/2006
Pledgee Agreement
(page 2 of 2)
Telephone: Print Name:
Fal: Sibi~~tiue:
The Undersigned hereb~~ certifies tl~at he/she is the present la~tifiil incnmbent of the designated pi~lic off'ice.
Pledgee
Colleyville Economic Development Corporation
Name of govenunental uiut
100 Main Street
Sheet Address or P.O Boi Number
Colleyville, TX 76034
Cin , State, Zip Code
Official Signah~re/ Date
David Kelly, President
Printed Name and Title
Notary
State of
Coi~nn- of
On tlus
he/she resicles at
State of
that he/she is the [Title] of
and tl~at he/she eiecuted tlus document on behalf of
before ine.
(Signahue of Notai~-)
(Piint name of Notan )
M~- coimnission elpires on [Date]
da~~ of , 20_ before me persona115= appeared
, to ine persor~~lly lino~~ n or satisfactoiil~ proven, ~~ ho by~ me dnly° s~~ onL did depose and sa~~ that
, in the Cin- of , in the
Title:
Date:
REV O1/2006
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 3a Agenda Date 08/28/2012 Number Resolution R-1Z-118
Type Resolution
Denartment Citv Manaaer
Title
Adopting the Economic Development Capital Improvement Program (EDCIP) for FY
2013-2017
Explanation
Reading and Pub/ic Hearing
The Colleyville Economic Development Corporation Bylaws require the Board to
develop a combined Economic Development Capital Improvement Program (EDCIP)
annually, which sets forth long and short-term goals. This program "shall be one that
addresses the development needs of the City within the financial constraints available
to the Corporation." The "EDCIP shall identify the projects to be undertaken by the
Corporation and include proposed methods and the expected cost of the
implementation." After the EDCIP is developed, it must be approved by the City
Council.
On August 14, 2012, the Board met in a worksession and reviewed and discussed the
proposed projects for FY 2013 through 2017 from the attached EDCIP (Exhibit A) and
the attached proposed FY 2013 Promotional Budget. As directed by the Board, the
replacement of the main air conditioning unit in the Colleyville Center ($30,000)
was moved from FY 2015 to FY 2013. An additional change is the description of
the proposed FY 2013 improvements to L.D. Lockett Park was changed from
"Playground at L.D.Lockett Park Trail Node" to "Improvements to the Cotton Belt Trail
at the L.D. Lockett Park trailhead". The proposed changes from the attached adopted
FY 2012 - FY 2016 EDCIP (Exhibit B) are as follows:
Revenues:
Projection of sales tax growth conservatively remains at 1% annually throughout the
next five years. There is a slight change from year-to-year, due to the annual changes
in investable cash from beginning fund balance in the two different EDCIP plans. There
is the use of available cash from the .4 times bond coverage ratio in all years of the
plan, with the ending target fund balance in 2017 at a level slightly above $850,000.
CEDC Board Agenda Briefing 3a
Expend itu res:
FY 2013:
Carry forward of funding for incomplete projects - completion of Pleasant Run Trail
design (Bogart Drive to Mission Lane) -$41,340 and the right-of-way acquisition for
the trail ($168,000). As was included in the approved FY 2012 - 2016 EDCIP, there is
funding for the construction of the following trails: Pleasant Run Trail (Bogart Drive to
Mission Lane) -$277,000 and the Cotton Belt II spur at Webb House -$165,000.
Funding is included for the replacement of tables ($12,000) and chairs ($41,000) at
the Colleyville Center. These are used at over 600 events annually, and are
replacements of the original tables purchased when the Colleyville Center opened in
1998, and replacements for the chairs acquired in 2005. The replacement of the chairs
was moved in the EDCIP from FY 2015 to FY 2013 with a cost increase of $4,000,
due to the inclusion of delivery costs and an increase in price. There was an increase
of $3,000 for replacement of additional tables that was scheduled for FY 2013 in the
prior EDCIP. Additionally, funding is included for the replacement of the original flat
roof area of the Colleyville Center ($50,000) and the main air conditioning unit
($30,000), which is the original unit that has been in service since 1998. The
$134,905, which was allocated to a future parks project, pending the completion of the
Parks Master Plan in FY 2012, has been allocated to a rebranding study of the Senior
Center ($35,000) and renovations to the Senior Center ($99,905). The rebranding
study was recommended in the Parks Master Plan, which was adopted by City Council
on December 6, 2011, and will propose additional uses for the Senior Center. It is
anticipated there will be renovations needed to accommodate the additional uses, and
there is a need for replacement of air conditioning components. There is also $9,000
included for the replacement of tables and chairs, which have been in use since the
Senior Center opened in 2006. Lastly, there is funding in the amount of $100,000
for improvements to the Cotton Belt Trail at the L.D. Lockett Park trailhead. This
funding would be used for removal of the existing house from the property, and
possible improvements such as a covered shelter area, a picnic area, bike racks, and
play elements.
FY 2014:
The future projects category was increased from $400,000 to $425,000.
FY 2015:
The future projects allocation is increased from $370,000 to $425,000.
FY 2016:
The future projects allocation is increased from $400,000 to $425,000.
CEDC Board Agenda Briefing 3a
FY 2017:
The future projects allocation is $450,000 and funding, in the amount of $25,000, is
included for the replacement of the original stage curtain that has been in use since
1998.
Financial Impact
The revenue estimate is one-half of the sales tax revenue estimated in the City's
proposed FY 2013 budget. FY 2014-2017 includes a 1% increase in sales tax. The use
of available cash during FY 2013 - 2017 brings fund balance down to $864,334 in FY
2017.
Recommendation
Approve
Attachments
1. FY 2013 - 2017 EDCIP - Exhibit A
2. FY 2013 Proposed Promotional Budget
3. FY 2012 - 2016 EDCIP - Exhibit B
4. Resolution R-12-118
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION EXHIBIT A
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2013 - FY 2017
FISCAL YEAR 2012 $2,013 2014 2015 2016 2017
BEGINNING FUND BALANCE $1,S54,S80 $1,945,474 $1,141,977 $952,523 $935,125 $920,458
REVENUES:
PROJECTED 1/2 CENT SALES TAX REVENUE $1,382,500 $1,335,000 $1,345,350 $1,361,534 $1,375,452 $1,359,206
INTEREST INCOME $3,905 $3,591 $2,254 $1,905 $1,570 $1,841
USE OF AVAILABLE CASH $165,041 $1,062,544 $447,307 $275,551 $274,505 $316,045
TOTAL REVENUES $1,554,446 $2,401,735 $1,797,940 $1,639,2S9 $1,652,127 $1,707,095
EXPENDITURES:
OPERATING:
ADMINISTRATIVE $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
2005 DEBT SERVICE & 1.4 TIMES COVERAGE $905,223 $907,711 $902,452 $903,536 $910,584 $909,629
PROMOTIONAL $129,368 $133,589 $135,063 $136,374 $137,732 $139,105
WATER / WASTEWATER- MC PHERSON PARK $16,450 $16,974 $17,453 $18,OOS $15,548 $19,104
PERSONNEL- SENIOR CENTER $70,095 $72,195 $73,642 $75,551 $75,127 $50,471
PERSONNEL - LIBRARY $69,024 $71,095 $72,517 $73,967 $75,447 $76,956
OPERATIONS - LIBRARY $4,167 $4,292 $4,421 $4,553 $4,690 $4,531
CAPITAL:
INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $165,331 $165,331 $165,332 $0 $0 $0
($661,325 REPAID OVER 4 YEARS)
COLLEWILLE CENTER - REPLACEMENT TABLES $0 $12,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT CHAIRS $0 $41,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT MAIN AIR CONDITIONER UNIT $0 $30,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT FLAT ROOF $0 $50,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT STAGE CURTAIN $0 $0 $0 $0 $0 $25,000
LIBRARY - BALANCE OF UNUSED 2011 SALARIES (FF&E) $46,532 $0 $0 $0 $0 $0
LIBRARY - SECOND FLOOR, TEEN ROOM AND FIRST FLOOR-TECHNOLOGY / FF&E $75,566 $0 $0 $0 $0 $0
LIBRARY TECHNOLOGY REPLACEMENTS $51,000 $0 $0 $0 $0 $0
CITYWIDE TRAIL SYSTEM
COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $165,000 $0 $0 $0 $0
PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION)-CARRY FORWARD $16,660 $41,340 $0 $0 $0 $0
PLEASANT RUN TRAIL ROW ACQUISITION (BOGART TO MISSION)-CARRY FORWARD $0 $168,000 $0 $0 $0 $0
PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $277,000 $0 $0 $0 $0
IMPROVEMENTS AT COTTON 6ELT - LD LOCKETT PARK TRAILHEAD $0 $100,000 $0 $0 $0 $0
SENIOR CENTER
REBRANDING STUDY $0 $35,000 $0 $0 $0 $0
RENOVATIONS $0 $99,905 $0 $0 $0 $0
TABLE AND CHAIR REPLACEMENTS $0 $9,000 $0 $0 $0 $0
FUTURE PROJECTS $0 $0 $425,000 $425,000 $425,000 $450,000
TOTAL EXPENDITURES $1,554,446 $2,401,735 $1,797,940 $1,639,259 $1,652,127 $1,707,095
EXCESS REVENUES OVER EXPENDITURES $0 $0 $0 $0 $0 $0
ADD BACK .4 TIMES BOND COVERAGE RATIO $258,635 $259,346 $257,552 $255,153 $260,167 $259,894
ENDING FUND BALANCE $1,945,474 $1,141,977 $952,523 $935,125 $920,488 $864,334
ASSUMPTIONS: FY 2013: 1/2 OF CITY SALES TAX BUDGET PROJECTION / FY 2014 - 2017: 1% GROWTH
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
FY 2013 Promotional Budget
Description Explanation Total Proposed Costs
COLLEYVILLE CLOSEBUY: $26,680 Colleyville CloseBuy Program:
Five Frida s CCB Promotional Events ` $6,000
Monthl Business Events Ccard Kickoff, Cash Mobs $6,000
CCB A Subscri tion $480
Frequent Buyer Cards $6,000
Colleyville CloseBuy Merchandise $4,000
Chamber Nation Subscription (Colleyville CloseBuy Website) $4,200
COME TO COLLEYVILLE PROGRAM: $22,182 Shopping and Dining Guide - Replacement Printing $2,800
Fort Worth, TX or D Magazine (contingency ads) $4,214
Bridal Expos $5,368
Marketin Desi n and Production $4,000
Certified Folder Dis la Visitors Guide Distribution $5,800
SPECIAL EVENTS: $85,000 Old Tyme BBQ/spring event (Colleyville Center/Town Center) $15,000
Holl Colle Christmas/Holida Event in the Villa e at Colle ville $40,000
Red, White & Sousa in the Villa e at Colle ille $30,000
Total $133,862
~Five Fridays include Black Friday (Friday after Thanksgiving), as well as the Fridays
before Valentines Day, Mother's Day, Father's Day and Back to School.
COLLEYVILLEECONOMIC DEVELOPMENT CORPORATION EXHIBIT B
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2012 - FY 2016
FISCALYEAR 2011 2012 2013 2014 2015 2016
BEGINNING FUND BALANCE $2,173,015 $1,702,334 $1,355,958 $1,100,004 $905,114 $874,215
REVENUES:
PROJECTED 1/2 CENT SALES TAX REVENUE $1,277,500 $1,290,275 $1,303,178 $1,316,210 $1,329,372 $1,342,665
INTEREST INCOME $3,900 $3,405 $2,712 $2,200 $1,810 $1,748
USE OF AVAILABLE CASH $728,360 $605,011 $515,301 $452,742 $289,053 $282,430
TOTAL REVENUES $2,009,759 $1,898,691 $1,821,190 $1,771,151 $1,620,234 $1,626,843
EXPENDITURES:
OPERATING:
ADMINISTRATIVE $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
2005 DEBT SERVICE & 1.4 TIMES COVERAGE $901,873 $905,223 $907,711 $902,482 $903,536 $910,584
PROMOTIONAL $120,000 $129,368 $130,589 $131,841 $133,118 $134,441
WATER / WASTEWATER- MC PHERSON PARK $16,000 $16,480 $16,974 $17,484 $18,008 $18,548
PERSONNEL - SENIOR CENTER $70,095 $70,095 $72,198 $74,364 $76,595 $78,893
PERSONNEL - LIBRARY $21,649 $69,024 $71,095 $73,227 $75,424 $77,687
OPERATIONS - LIBRARY $4,046 $4,167 $4,292 $4,421 $4,554 $4,690
CAPITAL:
INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $165,331 $165,331 $165,331 $165,332 $0 $0
($661,325 REPAID OVER 4 YEARS)
COLLEYVILLE CENTER - REPLACEMENT TABLES $0 $0 $9,000 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT CHAIRS $0 $0 $0 $0 $37,000 $0
LIBRARY SECOND FLOOR EXPANSION $522,274 $0 $0 $0 $0 $0
LIBRARY - COLLECTION SORTER $86,491 $0 $0 $0 $0 $0
LIBRARY - BALANCE OF UNUSED 2011 SALARIES (FF&E) $0 $46,532 $0 $0 $0 $0
LIBRARY - SECOND FLOOR, TEEN ROOM AND FIRST FLOOR-TECHNOLOGY / FF&E $0 $78,566 $0 $0 $0 $0
LIBRARY TECHNOLOGY REPLACEMENTS $0 $51,000 $0 $0 $0 $0
CITYWIDE TRAIL SYSTEM
COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $0 $165,000 $0 $0 $0
COTTON BELT II SPUR @ L.D. LOCKETT PARK CONSTRUCTION $100,000 $0 $0 $0 $0 $0
PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION)-CARRY FORWARD $0 $58,000 $0 $0 $0 $0
PLEASANT RUN TRAIL ROW ACQUISITION (BOGART TO MISSION) $0 $168,000 $0 $0 $0 $0
PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $0 $277,000 $0 $0 $0
FUTURE PROJECTS - PARKS $0 $134,905 $0 $0 $0 $0
FUTURE PROJECTS $0 $0 $0 $400,000 $370,000 $400,000
TOTAL EXPENDITURES $2,009,759 $1,898,691 $1,821,191 $1,771,151 $1,620,235 $1,626,844
EXCE55 REVENUES OVER EXPENDITURES $0 $0 $0 $0 $0 $0
ADD BACK .4 TIMES BOND COVERAGE RATIO $257,678 $258,635 $259,346 $257,852 $258,153 $260,167
ENDING FUND BALANCE $1,702,334 $1,355,958 $1,100,004 $905,114 $874,215 $851,953
ASSUMPTIONS: FY 2012: 1/2 OF CITY SALES TAX BUDGET PROJECTION / FY 2013 - 2016: 1% GROWTH
RESOLUTION R-12-118
A RESOLUTION ADOPTING THE ECONOMIC DEVELOPMENT CAPITAL
IMPROVEMENT PROGRAM (EDCIP) FOR FISCAL YEARS 2013-2017
WHEREAS, the bylaws of the Colleyville Economic Development
Corporation require that an Economic Development Capital
Improvement Program be developed setting forth long and
short-term goals that address the needs of the City within the
financial constraints of revenues available to the Corporation;
and
WHEREAS, the EDCIP shall identify the projects to be undertaken by the
Corporation and include proposed methods and the expected
cost of the implementation.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT the Economic Development Capital Improvement
Program of the Colleyville Economic Development Corporation
(Exhibit A) is hereby adopted.
Sec. 2. THAT once approved, the EDCIP will be forwarded to the City
Council for their subsequent approval.
Sec. 3. THAT this Resolution shall become effective on the date of
passage.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, THIS August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION EXHIBIT A
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2013 - FY 2017
FISCAL YEAR 2012 $2,013 2014 2015 2016 2017
BEGINNING FUND BALANCE $1,854,880 $1,945,474 $1,141,977 $952,523 $935,125 $920,488
REVENUES:
PROJECTED 1/2 CENT SALES TAX REVENUE $1,382,500 $1,335,000 $1,348,350 $1,361,834 $1,375,452 $1,389,206
INTEREST INCOME $3,905 $3,891 $2,284 $1,905 $1,870 $1,841
USE OF AVAILABLE CASH $168,041 $1,062,844 $447,307 $275,551 $274,805 $316,048
TOTAL REVENUES $1,554,446 $2,401,735 $1,797,940 $1,639,289 $1,652,127 $1,707,095
EXPENDITURES:
OPERATING:
ADMINISTRATIVE $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
2005 DEBT SERVICE & 1.4 TIMES COVERAGE $905,223 $907,711 $902,482 $903,536 $910,584 $909,629
PROMOTIONAL $129,368 $133,889 $135,063 $136,374 $137,732 $139,105
WATER / WASTEWATER- MC PHERSON PARK $16,480 $16,974 $17,483 $18,008 $18,548 $19,104
PERSONNEL- SENIOR CENTER $70,095 $72,198 $73,642 $75,851 $78,127 $80,471
PERSONNEL- LIBRARY $69,024 $71,095 $72,517 $73,967 $75,447 $76,956
OPERATIONS - LIBRARY $4,167 $4,292 $4,421 $4,553 $4,690 $4,831
CAPITAL:
INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $165,331 $165,331 $165,332 $0 $0 $0
($661,325 REPAID OVER 4 YEARS)
COLLEYVILLE CENTER - REPLACEMENT TABLES $0 $12,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT CHAIRS $0 $41,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT MAIN AIR CONDITIONER UNIT $0 $30,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT FLAT ROOF $0 $50,000 $0 $0 $0 $0
COLLEYVILLE CENTER - REPLACEMENT STAGE CURTAIN $0 $0 $0 $0 $0 $25,000
LIBRARY - 6ALANCE OF UNUSED 2011 SALARIES (FF&E) $46,532 $0 $0 $0 $0 $0
LIBRARY - SECOND FLOOR, TEEN ROOM AND FIRST FLOOR-TECHNOLOGY / FF&E $78,566 $0 $0 $0 $0 $0
LIBRARY TECHNOLOGY REPLACEMENTS $51,000 $0 $0 $0 $0 $0
CITYWIDE TRAIL SYSTEM
COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $165,000 $0 $0 $0 $0
PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION)-CARRY FORWARD $16,660 $41,340 $0 $0 $0 $0
PLEASANT RUN TRAIL ROW ACQUISITION (BOGART TO MISSION)-CARRY FORWARD $0 $168,000 $0 $0 $0 $0
PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $277,000 $0 $0 $0 $0
IMPROVEMENTS AT COTTON BELT - LD LOCKETT PARK TRAILHEAD $0 $100,000 $0 $0 $0 $0
SENIOR CENTER
REBRANDING STUDY $0 $35,000 $0 $0 $0 $0
RENOVATIONS $0 $99,905 $0 $0 $0 $0
TABLE AND CHAIR REPLACEMENTS $0 $9,000 $0 $0 $0 $0
FUTURE PROJECTS $0 $0 $425,000 $425,000 $425,000 $450,000
TOTAL EXPENDITURES $1,554,446 $2,401,735 $1,797,940 $1,639,289 $1,652,127 $1,707,095
EXCE55 REVENUES OVER EXPENDITURES $0 $0 $0 $0 $0 $0
ADD BACK.4 TIMES BOND COVERAGE RATIO $258,635 $259,346 $257,852 $258,153 $260,167 $259,894
ENDING FUND BALANCE $1,945,474 $1,141,977 $952,523 $935,125 $920,488 $864,334
ASSUMPTIONS: FY 2013: 1/2 OF CITY SALES TAX BUDGET PROJECTION / FY 2014 - 2017: 1% GROWTH
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 3b Agenda Date 08/28/2012 Number Resolution R-1Z-119
Type Resolution
Denartment Citv Manaaer
Title
Adopting the Fiscal Year 2013 (FY 2013) Budget
Explanation
Reading and Pub/ic Hearing
Per the Colleyville Economic Development Corporation (CEDC) bylaws, the Board of
Directors must adopt an annual budget. The attached FY 2013 budget replicates the FY
2013 revenues and expenditures contained in the proposed FY 2013 - 2017 EDCIP
(Agenda item 3a). The sales tax portion of the revenue estimate ($1,335,000) is one-
half of the sales tax revenue estimate in the City's proposed FY 2013 budget. Total
proposed expenditures include the following:
Capital: ~
• Colleyville Center - Replacement tables ~$ 12,000
• Colleyville Center - Replacement chairs ~$ 41,000
• Colleyville Center - Replacement main air conditioner unit ~$ 30,000
• Colleyville Center - Replacement flat roof ~$ 50,000
• Cotton Belt II Trail Webb House spur construction ~$165,000
• Pleasant Run Trail Design (Mission to Bogart) FY 2012 carry I$ 41,340
forward
• Pleasant Run Trail right-of-way acquisition (Mission to Bogart) FY I$168,000
2012 carry forward
• Pleasant Run Trail (Mission to Bogart) construction ~$277,000
• Improvements at Cotton Belt - L.D. Lockett Park Trailhead ~$100,000
• Senior Center - Rebranding study ~$ 35,000
• Senior Center - Renovations ~$ 99,905
• Senior Center - Replacement tables and chairs $ 9,000
Operating: ~
• Administrative ~ $ 2,000
• Personnel - Senior Center Supervisor position ~ $ 72,198
• Personnel - Library (four part time positions) ~ $ 71,095
• Operations - Library $ 4,292
CEDC Board Agenda Briefing 3b
• Promotional ~ $133,889
• Water/wastewater McPherson splash pad ~ $ 16,974
• Debt service on the 2005 sales tax refunding bonds ~ $648,365
• Interfund loan repayment - Colleyville Center renovations ~ $165,331
The budget also utilizes $1,062,844 in available cash balance, with the projected
ending Fiscal Year 2012 Fund Balance being $1,945,474.
Financial Impact
Adoption will provide appropriations for the FY 2013 budget.
Recommendation
Approve
Attachments
1. FY 2013 Proposed Budget summary
2. Resolution R-12-119
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
FY 2013 BUDGET SUMMARY
FY 2012 FY 2013
ANTICIPATED PROPOSED
BEGINNING FUND BALANCE $ 1,854,880 $ 1,945,474
REVENUES:
SALES TAX REVENUES $ 1,382,500 $ 1.335.000
INTERESTINCOME $ 3,905 $ 3.891
USE OF AVAILABLE CASH $ 168,041 $ 1.062.844
TOTAL REVENUES $ 1,554,446 $ 2.401.735
LESS EXPENSES:
ADMINISTRATIVEEXPENSES: $ 2,000 $ 2,000
MARKETING $ 129,368 $ 133,389
PERSONNEL- SENIOR CENTER SUPERVISOR $ 70,095 $ 72,198
PERSONNEL-LIBRARY $ 69,024 $ 71A95
OPERATIONS- LIBRARY $ 4,167 $ 4,292
WATER-MC PHERSON PARK $ 16,480 $ 16,974
DEBTSERVICE $ 646,588 $ 648,365
INTERFUND LOAN REPAYMENT- COLLEYVILLE CENTER RENOVATION $ 165,331 $ 165,331
CAPITAL PROJECTS:
COLLEYVILLECENTER-REPLACEMENTTABLES $ - $ 12,000
COLLEYVILLECENTER-REPLACEMENTCHAIRS $ - $ 41,000
COLLEYVILLE CENTER - REPLACEMENT MAIN AIR CONDITIONER UNIT $ - $ 30,000
COLLEYVILLECENTER-REPLACEMENTSTAGECURTAIN $ - $ 50,000
LIBRARY SECOND FLOOR EXPANSION FF&E (BALANCE OF UNUSED FY 2011 SALARIES) $ 46,532 $ -
LIBRARY SECOND FLOOR, TEEN ROOM AND FIRST FLOOR - TECHNOLOGY AND FF&E $ 7E,566 $ -
LIBRARY TECHNOLOGY REPLACEMENTS $ 51,000 $ -
TRAIL CONSTRUCTION - COTTON BELT II SPUR AT WEBB HOUSE $ - $ 165,000
TRAIL CONSTRUCTION - PLEASANT RUN (BOGART TO MISSION) DESIGN $ 16,660 $ 41,340
TRAIL CONSTRUCTION - PLEASANT RUN (BOGART TO MISSION) ROW ACQUISITION $ - $ 168,000
TRAIL CONSTRUCTION - PLEASANT RUN (BOGART TO MISSION) CONSTRUCTION $ - $ 277,000
TRAIL IMPROVEMENTSAT COTTON BELT- L.D. LOCKETT PARK TRAILHEAD $ - $ 100,000
FUTUREPROJECTS-PARKS(FY2012BUDGET$134,905) $ - $ -
SENIOR CENTER - REBRANDING STUDY $ - $ 35,000
SENIOR CENTER - RENOVATIONS $ - $ 99,905
SENIOR CENTER - TABLE AND CHAIR REPLACEMENTS $ - $ 9,000
TOTAL EXPENSES $ 1,295,811 $ 2,142,389
EXCESS REVENUES OVER EXPENSES $ 258,635 $ 259.346
ENDING FUND BALANCE $ 1,945,474 $ 1,141,976
NOTE: A COVERAGE RATIO OF 1.4 IS REQUIRED TO MEET THE SALES TAX
BOND COVENANTS. FOR FY 2013 REVENUES MUST EXCEED EXPENDITURES
BY AT LEAST $259.346.
RESOLUTION R-12-119
A RESOLUTION ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR
2012 FOR THE COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION
WHEREAS, the bylaws of the
Corporation require that
Board of Directors; and
Colleyville Economic Development
an annual budget be adopted by the
WHEREAS, the bylaws require that the budget includes projected revenues
and proposed expenditures.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT the Fiscal Year 2013 budget amounts for the Colleyville
Economic Development Corporation are as follows:
Revenues $2,401,735
Expenditures $2,142,389
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, THIS August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 3c Agenda Date 08/28/2012 Number Resolution R-1Z-1Z0
Type Resolution
Denartment Citv Manaaer
Title
Replacing Resolution R-03-59 to update the Colleyville Economic Development
Corporation's, (CEDC) Investment Policy
Explanation
Reading and Pub/ic Hearing
The most recent legislative session approved updates to the Public Funds Investment
Act, which governs the Colleyville Economic Development Corporation's investment
process and investment policy. To be compliant with the updates, attached is the
Corporation's Investment Policy with proposed revisions. Additionally, staff
has incorporated revisions suggested by Government Treasurers of Texas Investment
Policy Certification program.
Below are the major additions to the Corporation's Investment Policy by section
contained in proposed Resolution R-12-120 and the attachment, "Proposed changes to
the Corporation's Investment Policy".
Major additions by section:
Objectives - Safety
The Corporation will also take into account the marketability of the investment if the
need arises to liquidate the investment before maturity.
Permissible Investments
The Corporation is not required to liquidate an investment that was authorized at the
time of its purchase.
Unacceptable Investments
Additional language under collateralized mortgage obligations: and/or obligations of
the following structure
a) obligations whose payment represents the coupon payments on the outstanding
principal balance of the underlying mortgage-backed security collateral and pays
no principal;
Page 1
CEDC Board Agenda Briefing 3c
b) obligations whose payment represents the principal stream of cash flow from the
underlying mortgage-backed security collateral and bears no interest;
c) collateralized mortgage obligations that have a stated final maturity date of
greater than 10 years; and
d) collateralized mortgage obligations the interest rate of which is determined by an
index that adjusts opposite to the changes in a market index.
Effect of Loss of Required Rating
An investment that requires a minimum rating does not qualify as an authorized
investment during the period the investment does not have a minimum rating. The
Investment Officer shall take all prudent measures that are consistent with the
Corporation's investment policy to liquidate the investment(s) that does not have the
minimum rating (2256.021). In accordance with Section (2256.005(b)), the
Investment Officer shall monitor rating changes in current investments by keeping a
monthly record of ratings issued by three nationally recognized rating agencies.
Investment Strategy
Weighted average maturities were added for each fund and maximum maturity on
operating funds were extended from 18 months to two years. Annually, the Board
shall formally review the Investment Policy and investment strategy contained with the
Policy and record in writing that is has reviewed the Policy and record any changes to
either the Policy or strategy.
Collateral Securities for Certificates of Deposit and Demand Accounts
Federal Home Loan Bank Letter of Credit issued to the Corporation.
Reporting Requirements
The portfolio shall be marked to market monthly and market pricing information is to
be obtained through the use of appropriate external third party software, third party
safekeeping service, or a third party independent pricing service.
The quarterly investment reports must be reviewed annually by the City of Colleyville's
external audit firm as a part of the City of Colleyville and Colleyville Economic
Development Corporation's annual audit and reported to the Colleyville City Council.
Training Requirements
In accordance with the Act (2256.005 and 2256.008), the CEDC Finance Manager and
the City of Colleyville Finance Manager, shall attend 10 hours of investment training
within 12 months of assuming duties, and 10 hours not less than once in a two-year
period that begins on the first day of the City's fiscal year, and consists of the two
consecutive fiscal years after that date.
Financial Impact
The Investment Policy provides required parameters for the investment of Corporation
funds as required by the State of Texas Public Funds Investment Act.
CEDC Board Agenda Briefing 3c
Recommendation
Approve
Attachments
1. Proposed changes to the Corporation's Investment Policy
2. Resolution R-12-120
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
Policy
It is the policy of the Colleyville Economic Development Corporation (the
Corporation) to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting the
daily cash flow demands of the entity and conforming to all State of Texas
statutes and City ordinances.
Scope
This investment policy applies to all financial assets of the Corporation
including:
General Fund
Debt Service Fund
Capital Projects Fund
and any new fund created by the governing body, unless specifically
exempted by the governing body.
Objectives
The primary objectives, in priority order, of the Corporation's investment
activities shall be:
Safety: Safety of principal is the foremost objective of the Corporation in
managing its portfolio. Investments of the Corporation shall be undertaken
in a manner that seeks to ensure the preservation of capital in the overall
portfolio. To attain this objective the Corporation will diversify its
investments by investing funds among a variety of securities offering
independent returns and financial institutions. The Corporation will also
take into account the marketability of the investment if the need
arises to liquidate the investment before maturity.
Liquidity: The Corporation will also maintain sufficient liquidity to provide
adequate and timely working funds.
Return on Investments: The investment portfolio shall be designed with the
objective of obtaining a rate of return throughout budgetary and economic
cycles, commensurate with the investment risk constraints and cash flow
needs. The Corporation investment strategy is passive and the portfolio
shall be designed with the objective of regularly exceeding the weighted
average return on thirteen-week Treasury bills. This is considered a
benchmark for riskless investment transactions, and therefore, is a minimum
standard for the portfolio's rate of return. For bond funds that fall under the
arbitrage provisions of the Tax Reform Act of 1986, the Corporation will
attempt to earn allowable bond yield with market conditions permitting.
Delegation of Authority
The Corporation designates the Investment Officers to be the Corporation
Manager with overall responsibilities to see that investment objectives are
accomplished and the Finance Manager of the Corporation and Finance
Manager of the City of Colleyville with the specific day-to-day
performance of managing the funds of the Corporation.
Ethics and Conflict of Interest
All investment Officers and employees involved in the investment process
shall refrain from personal business activity that could conflict with proper
execution of the investment program, or that could impair their ability to
make impartial investment decisions. Employees shall disclose to the
Colleyville Economic Development Corporation and Texas Ethics Commission
a statement under the following conditions:
A. If they have a personal business relationship with a business
organization offering to engage in an investment transaction with the
entity. Under the Public Funds Investment Act, a personal business
relationship is defined as:
1. The investment officer owns 10 percent or more of the voting
stock or shares of the business organization or owns $5,000 or
more of the fair market value of the business organization:
2. Funds received by the investment officer from the business
organization exceed 10 percent of the investment officer's gross
income for the previous year; or
3. The investment officer has acquired from the business
organization during the previous year, investments with a book
value of $2,500 or more for the personal account of the
investment officer.
B. If they are related within the second degree by affinity or
consanguinity, as determined by Chapter 573 V.A.T.C.S. to an
individual seeking to sell an investment to the Corporation.
Prudence
Investments shall be made with judgement and care - under circumstances
then prevailing - which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the
probable income to be derived.
The standard of prudence to be used by investment officials shall be the
"prudent person", which means the officer may not be an expert but is
obligated to act responsibly and shall be applied in the context of managing
an overall portfolio. Investment officers acting in accordance with written
procedures and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments.
Investment officers shall notify the Corporation in writing of any conflicts of
interest, as defined by the Public Funds Investment Act, no later than the
next regularly scheduled Board meeting.
It is the policy of the Corporation that the Investment Officers perform their
duties in accordance with the policies and procedures set forth in this policy.
The Investment Officers of the Corporation (General Manager and Finance
Manager and the °c~~~~~~~^~n~r~ Finance Manager of the
City of Colleyville) shall be personally indemnified in the event of investment
loss provided the Investment Policy is followed.
Internal Controls
The Finance Manager shall establish a system of written internal controls
which shall be reviewed annually by the independent auditor. The controls
shall be designed to prevent the loss of public funds due to fraud, error,
misrepresentation, unanticipated market changes or imprudent actions.
Permissible Instruments
The following is a list of permissible instruments as authorized by the 70th
Texas Legislature in the Public Funds Investment Act (TEX. REV. CIV. STAT.
ANN. ACT 842A-2) and amended by the 71st Legislature:
1. Obligations of the United States or its agencies or instrumentalities;
2. Direct obligations of the State of Texas or its agencies;
3. Other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States or its agencies or instrumentalities;
4. Obligations of states, agencies, counties, cities, and other political
subdivisions of any state having been rated as to investment quality
by nationally recognized investment rating firm and having received a
rating of not less than "A" or its equivalent;
5. Certificates of deposit issued by state and national banks and
domiciled in the state that are:
a. Guaranteed or insured by the Federal Deposit Insurance
Corporation, FSLIC or its successors; or
b. Secured by obligations that are described by subdivisions (1)
through (4) of this subsection, which are intended to include
all direct federal agency or instrumentality issued mortgage
backed securities, and which have a market value of not less
than the principal amount of the certificates or in any other
manner and amount provided by law for deposits of the
investing entities;
6. Invest in a local government investment pool as authorized by the
Interlocal Cooperation Act (TEX. REV. CIV. STAT. ANN. ACT. 4413
(32c), as amended, and the Public Funds Investment Act (TEX. REV.
CIV. STAT. ACT. 842a-2), as amended. The investment pool must
comply with the requirements of the Public Funds Investment Act, as
amended, as follows:
a. The investment pool maintains a stable asset value as defined
in the Public Funds Investment Act;
b. The investment pool maintains a AAA rating by one of the
nationally recognized rating agencies;
c. The investment pool's maximum average dollar weighted
maturity does not exceed 90 days; and
d. The investment pool's continued compliance with the
remaining provisions of the Public Funds Investment Act.
e. The eligible investments of the pool are as follows: obligations
of the United States or its agencies and instrumentalities,
other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the United States,
fully collateralized repurchase agreements with a defined
termination date secured by obligations of the United States
or its agencies and instrumentalities, other obligations, the
principal of and interest on which are unconditionally
guaranteed or insured by the United States, and SEC
registered money market funds authorized by the Public
Funds Investment Act and rated in the highest category by at
least one nationally recognized rating agency, reverse
repurchase agreements with a term of no longer than 90
days.
f. Include in its investment policy and/or operating procedures
the following information: a description of eligible investment
securities and unacceptable investments, a written statement
on investment policy and objectives, a description of interest
calculations, distribution, and treatment of gains and losses,
security safeguarding, valuation collateralization and auditing,
and a fee schedule.
7. Direct repurchase agreements with primary security dealers or
financial institutions doing business in the State of Texas having a
defined termination date, and secured by U.S. Government or federal
agency securities, provided that the ownership of collateral for the
repurchase agreement is transferred to the Corporation, and deposited
with a safekeeping agent for the duration of the contract and a signed
master repurchase agreement has been executed with the
counterparty.
8. SEC-registered no-load money market mutual funds with a dollar
weighted average portfolio of 90 days or less whose assets consist
exclusively of United States Government Securities whose investment
objectives include seeking to maintain a stable net asset value of
$1.00 per share. Investment in mutual funds shall be limited to a
maximum of ten percent (10%) of the Corporation's available funds.
The Corporation is not required to liquidate an investment that was
authorized at the time of its purchase.
Unacceptable Investment Instruments
The following securities, although authorized by the Public Funds Investment
Act, are not eligible investments for the Corporation:
1. Collateralized mortgage obligations and/or obligations of the
following structure
a) obligations whose payment represents the coupon
payments on the outstanding principal balance of the
underlying mortgage-backed security collateral and pays
no principal;
b) obligations whose payment represents the principal
stream of cash flow from the underlying mortgage-backed
security collateral and bears no interest;
c) collateralized mortgage obligations that have a stated
final maturity date of greater than 10 years; and
d) collateralized mortgage obligations the interest rate of
which is determined by an index that adjusts opposite to
the changes in a market index.
2. Commercial paper
3. Banker's acceptances
4. Reverse repurchase agreements (Local Government Investment
Pools which the Corporation participates in may engage in
reverse repurchase agreements if the term is 90 days or less)
5. No-load mutual funds other than SEC-registered no-load money
market mutual funds with a dollar weighted average portfolio of
90 days or less whose assets consist exclusively of United States
Government Securities whose investment objectives include
seeking to maintain a stable net asset value of $1.00 per share.
6. Guaranteed investment contracts
7. Share certificates of qualifying credit unions
Effect of Loss of Required Rating
An investment that requires a minimum rating does not qualify as an
authorized investment during the period the investment does not
have a minimum rating. The Investment Officer shall take all
prudent measures that are consistent with the Corporation's
investment policy to liquidate the investment(s) that does not have
the minimum rating (2256.021). In accordance with Section
(2256.005(b)), the Investment Officer shall monitor rating changes
in current investments by keeping a monthly record of ratings issued
by three nationally recognized rating agencies.
Investment Strategy
The investment strategy by type of fund is as follows:
(1) Operating Funds
The investment strategy for operating fund(s) is to assure that anticipated
cash flows are matched with adequate investment liquidity. A secondary
objective is to create a portfolio, which will experience minimum volatility
during economic cycles. These funds shall not have an investment with a
stated maturity greater than two years cinh~ {~-~~ ~aa-e~#s and the
weighted average maturity shall not exceed eighteen months.
(2) Debt Service Funds
The investment strategy for debt service fund(s) is the assurance of
investment liquidity to cover the debt service obligations on the required
payment date. Investments purchased shall not have a stated final maturity
date which exceeds the corresponding debt service payment date. The
weighted average maturity shall not exceed one year.
(3) Reserve Funds
The investment strategy for reserve fund(s) is the assurance of investment
liquidity adequate to cover the debt service obligations not funded by debt
service funds on the required payment date. Investment of reserve funds
are controlled by their ordinance, resolution or indenture, and Federal and
State law. Bond documents must be examined for each issue, for potential
differences with this policy concerning investment instruments, maximum
maturity or average life restrictions, call dates or sinking fund redemptions,
and applicable arbitrage yields and rebate liability. Provisions contained in
the bond documents will supersede provisions of this policy. Weighted
average maturity shall be incompliance with bond requirements, as
stated.
Reserve funds will be invested using a more conservative approach than the
current standard investment strategy when arbitrage rebate rules require
refunding excess earnings. All excess earnings received will be segregated
to allow a proper determination of interest income to be used in the
arbitrage calculation.
Maturity limitations for single issue reserve funds shall not exceed the
sooner of five (5) years, the call provisions of the bond ordinance, or the
final maturity of the bond issue.
Annually, the Board of the Corporation shall formally review the
Investment Policy and investment strategy contained with the Policy
and record in writing that is has reviewed the Policy and record any
changes to either the policy or strategy.
A. Diversification
The Corporation will attempt to limit the risk of loss through diversification of
its portfolio and to achieve the aforementioned investment strategies by
diversification of instruments.
Maximum
Diversification by Instrument
U.S. Treasury Obligations (Bills, Notes and Bonds),
U.S. Government Agency Securities,
and Instrumentalities of Government
Sponsored Corporations
Certificates of Deposit (CD's)
Commercial Bank's
Local Government Investment Pool
Tri-Party Repurchase Agreement
SEC registered, no-load mutual fund
Investment Procedures
Percent
of Portfolio
100%
75%
75%
75%
75%
10%
The Corporation shall enter the following agreements (if applicable):
safekeeping, PSA repurchase agreements, wire transfer agreements,
banking services contracts, and collateral/depository agreements. These
contracts shall include the explicit delegation of authority to persons
responsible for the transactions involving these agreements. No person
except those designated in the contract may engage in any investment
transactions.
On all funds invested in instruments as listed in "Permissible Investments"
numbers one through five, oral bids shall be requested from at least two
broker/dealers or national banks. The Corporation will accept the bid that
provides the highest rate of return within the maturity required and within
the parameters of this policy. Records will be kept of the bids offered, bids
accepted, and a brief explanation of the decision that was made regarding
the investment.
Qualified Institutions
As the Corporations investments are managed by the investment officers of
the City of Colleyville, the Corporation shall utilize the broker/dealers
selected by the City of Colleyville. All firms shall answer the Broker/Dealer
questionnaire (Appendix A) and submit their most recent audited financial
statements to the City for evaluation of credit worthiness. All personnel in
the firms who will be trading or quoting securities to the Corporation must
maintain a current NASD license and be registered to deal securities in the
State of Texas. An investment certification form (Appendix B) on the firm's
letterhead signed by a principal of the firm must be on file with the
Corporation.
Safekeeping
All marketable securities purchased by the Corporation shall be held in third
party safekeeping by an institution designated as primary agent. All
securities will be delivered to the third party institution by seller. Personnel
in the third party institution will verify the correct security was delivered by
the seller ("delivery vs payment"). The third party institution shall issue a
safekeeping receipt to the Corporation listing the specific instrument,
rate/yield, maturity, CUSIP, and other pertinent information. Collateral on
deposit type securities which exceed the FDIC coverage shall be held in a
third party safekeeping institution. In the event a third party safekeeping
institution is used, a collateral agreement shall be executed between the
Corporation, depository which pledged the collateral, and the third party
custodian of the collateral. The Corporation will retain possession of all
original safekeeping receipts and the receipts will state the security is
pledged to the Corporation. Either the Corporation Manager or the Finance
Manager must approve release of collateral in writing prior to its removal
from the safekeeping account.
Collateral Securities for Certificates of Deposit and Demand Accounts
The Corporation will accept as collateral for its Certificates of Deposit and
demand accounts the following securities:
A. FDIC coverage
B. U.S. Treasury bills, notes and bonds
C. United States Agency and instrumentalities bills or notes
D. GNMA mortgage backed fully modified pass through securities
E. Texas state, city county or school bonds with a remaining maturity
of seven years or less and a rating of "A" or better by Moody's,
Fitch ~/~, and Standard and Poor's.
F. Surety Bond
G. Federal Home Loan Bank Letter of Credit issued to the
Corporation
Collateral shall be "marked to market" monthly by the Finance Manager. The
following percentages constitute the minimum market value for collateral
instruments that are pledged for the Corporation's Certificates of Deposit
and demand deposits.
Form of Collateral Pledged Collateral Ratio
1. U.S. Treasury bills, notes, and bonds
a. maturing within 1 year 102%
b. maturing in 1-5 years 105%
c. maturing in more than 5 years 110%
2. Actively traded U.S. Government Agency securities
a. maturing in less than 1 year 103%
b. maturing in 1-5 years 107%
c. maturing in more than 5 years 115%
3. GNMA mortgage pass through securities 115%
4. Entities in the State of Texas bonds
General Obligation Bonds
a. maturing in less than 1 year 102%
b. maturing in 1-5 years 105%
c. maturing in more than 5 years 107%
Revenue Bonds
a. maturing in less than 1 year 105%
b. maturing in 1-5 years 110%
c. maturing in more than 5 years 115%
Collateral shall be audited annually be the Corporation's independent auditor
and may be audited by the Corporation at anytime during normal business
hours of the safekeeping bank.
Arbitrage
The Tax Reform Act of 1986 places limitations on the Corporation's yield
from investing certain tax-exempt bond proceeds, debt service funds and
reserve funds. The rebate provisions require that the Corporation compute
earnings on investments from certain issues of bonds on a periodic basis to
determine if rebate is required.
To determine the Corporation's arbitrage position, the Corporation is
required to calculate the actual yield earned on the investment of the funds
and compare it to the yield that would have been earned if the funds had
been invested at a rate equal to the yield on the applicable bonds sold by
the Corporation. The rebate provisions state that periodically (not less than
once every five years and not later than sixty days after maturity of the
bonds), the Corporation is required to pay the United States Treasury a
rebate of any excess earnings. These restrictions require extreme precision
in the monitoring and record keeping of investments, particularly in
computing yields to ensure compliance. Failure to comply can dictate that
the bonds become taxable, retroactively from the date of issuance.
The investment strategy for bond funds which fall under the arbitrage
provisions of the Tax Reform Act of 1986, is that the Corporation will
attempt to earn maximum allowable bond yield with market conditions
permitting.
Reporting Requirements
Included as a part of the City of Colleyville's quarterly investment report,
Finance Manager shall issue a written report concerning the Corporation's
investment transactions for the preceding quarter and describing in detail
the investment position of the Corporation as of the end of the quarter
indicating the market values of all investments held during the quarter. The
report shall list for each investment held during the quarter: the purchase
price of the investment, the par value of the investment, the market value of
the investment at the beginning of the quarter, market value of the
investment at the end of the quarter, ~m=~rh~~~~hcninninn
~+~~€~a~~^"~ and fully accrued interest for the period. The
portfolio shall be marked to market monthly and market pricing
information is to be obtained through the use of appropriate
external third party software, third party safekeeping service, or a
third party independent pricing service. This report shall state its ~+~
compliance with provisions of the Public Funds Investment Act, as amended,
and adopted investment policy strategy. The report shall be signed by
the General Manager and Finance Manager and be reviewed annually by
the City of Colleyville's external audit firm as a part of the City of
Colleyville's and Colleyville Economic Development Corporation's
annual audit and reported to the City Council.
Training Requirements
In accordance with the Act (2256.005 and 2256.008), the Finance
Manager and Finance Manager of the City of Colleyville shall attend
10 hours of investment training within 12 months of assuming
duties and 10 hours not less than once in a two-year period that
begins on the first day of the Corporation's fiscal year and consists
of the two consecutive fiscal years after that date. ~~ ~~^~
M~~n~.n~c~~Occi~~~~~~in~~M~~n~.n~c~~~rnm~~~h^~~
~`-„`-' 7 ~AF~~t~~~~~ttt~f~t~t-di-FtYSTn~ioc~mon~ ~~.
This training may be obtained from the following sources: North Central
Texas Council of Governments, Government Treasurer's Organization of
Texas, Government Finance Officer's of Texas, Texas Municipal League or
the University of North Texas Center for Public Management. The
training must include education in investment controls, security risks,
strategy risks, market risks, and any other topics as required by the Public
Funds Investment Act.
RESOLUTION R-12-120
A RESOLUTION REPLACING RESOLUTION R-03-59 TO UPDATE
THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION'S
INVESTMENT
WHEREAS, a review of the Colleyville Economic Development Corporation's
investment policy necessitates an update of the Colleyville
Economic Development Corporation's investment policy as
adopted by Resolution R-96-04 and amended by Resolution R-
98-26, Resolution R-00-41, and Resolution R-03-59.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT "Exhibit A" of this resolution is adopted as the Colleyville
Economic Development Corporation's Investment Policy.
Sec. 2. THAT this resolution shall become effective on the date of
passage.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, THIS August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
Exhibit A
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
Policy
It is the policy of the Colleyville Economic Development Corporation (the
Corporation) to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting the
daily cash flow demands of the entity and conforming to all State of Texas
statutes and City ordinances.
Scope
This investment policy applies to all financial assets of the Corporation
including:
General Fund
Debt Service Fund
Capital Projects Fund
and any new fund created by the governing body, unless specifically
exempted by the governing body.
Objectives
The primary objectives, in priority order, of the Corporation's investment
activities shall be:
Safety: Safety of principal is the foremost objective of the Corporation in
managing its portfolio. Investments of the Corporation shall be undertaken
in a manner that seeks to ensure the preservation of capital in the overall
portfolio. To attain this objective the Corporation will diversify its
investments by investing funds among a variety of securities offering
independent returns and financial institutions. The Corporation will also take
into account the marketability of the investment if the need arises to
liquidate the investment before maturity.
Liquidity: The Corporation will also maintain sufficient liquidity to provide
adequate and timely working funds.
Return on Investments: The investment portfolio shall be designed with the
objective of obtaining a rate of return throughout budgetary and economic
cycles, commensurate with the investment risk constraints and cash flow
needs. The Corporation investment strategy is passive and the portfolio
shall be designed with the objective of regularly exceeding the weighted
average return on thirteen-week Treasury bills. This is considered a
benchmark for riskless investment transactions, and therefore, is a minimum
standard for the portfolio's rate of return. For bond funds that fall under the
arbitrage provisions of the Tax Reform Act of 1986, the Corporation will
attempt to earn allowable bond yield with market conditions permitting.
Delegation of Authority
The Corporation designates the Investment Officers to be the Corporation
Manager with overall responsibilities to see that investment objectives are
accomplished and the Finance Manager of the Corporation and Finance
Manager of the City of Colleyville with the specific day-to-day performance
of managing the funds of the Corporation.
Ethics and Conflict of Interest
All investment Officers and employees involved in the investment process
shall refrain from personal business activity that could conflict with proper
execution of the investment program, or that could impair their ability to
make impartial investment decisions. Employees shall disclose to the
Colleyville Economic Development Corporation and Texas Ethics Commission
a statement under the following conditions:
A. If they have a personal business relationship with a business
organization offering to engage in an investment transaction with the
entity. Under the Public Funds Investment Act, a personal business
relationship is defined as:
1. The investment officer owns 10 percent or more of the voting
stock or shares of the business organization or owns $5,000 or
more of the fair market value of the business organization;
2. Funds received by the investment officer from the business
organization exceed 10 percent of the investment officer's gross
income for the previous year; or
3. The investment officer has acquired from the business
organization during the previous year, investments with a book
value of $2,500 or more for the personal account of the
investment officer.
B. If they are related within the second degree by affinity or consanguinity,
as determined by Chapter 573 V.A.T.C.S. to an individual seeking to sell
an investment to the Corporation.
Prudence
Investments shall be made with judgment and care - under circumstances
then prevailing - which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the
probable income to be derived.
The standard of prudence to be used by investment officials shall be the
"prudent person", which means the officer may not be an expert but is
obligated to act responsibly and shall be applied in the context of managing
an overall portfolio. Investment officers acting in accordance with written
procedures and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments.
Investment officers shall notify the Corporation in writing of any conflicts of
interest, as defined by the Public Funds Investment Act, no later than the
next regularly scheduled Board meeting.
It is the policy of the Corporation that the Investment Officers perform their
duties in accordance with the policies and procedures set forth in this policy.
The Investment Officers of the Corporation (General Manager and Finance
Manager and the Finance Manager of the City of Colleyville) shall be
personally indemnified in the event of investment loss provided the
Investment Policy is followed.
Internal Controls
The Finance Manager shall establish a system of written internal controls
which shall be reviewed annually by the independent auditor. The controls
shall be designed to prevent the loss of public funds due to fraud, error,
misrepresentation, unanticipated market changes or imprudent actions.
Permissible Instruments
The following is a list of permissible instruments as authorized by the 70th
Texas Legislature in the Public Funds Investment Act (TEX. REV. CIV. STAT.
ANN. ACT 842A-2) and amended by the 71st Legislature:
1. Obligations of the United States or its agencies or instrumentalities;
2. Direct obligations of the State of Texas or its agencies;
3. Other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the State of Texas or the
United States or its agencies or instrumentalities;
4. Obligations of states, agencies, counties, cities, and other political
subdivisions of any state having been rated as to investment quality
by nationally recognized investment rating firm and having received a
rating of not less than "A" or its equivalent;
5. Certificates of deposit issued by state and national banks and
domiciled in the state that are:
a.Guaranteed or insured by the Federal Deposit Insurance
Corporation, FSLIC or its successors; or
b.Secured by obligations that are described by subdivisions (1)
through (4) of this subsection, which are intended to include
all direct federal agency or instrumentality issued mortgage
backed securities, and which have a market value of not less
than the principal amount of the certificates or in any other
manner and amount provided by law for deposits of the
investing entities;
6. Invest in a local government investment pool as authorized by the
Interlocal Cooperation Act (TEX. REV. CIV. STAT. ANN. ACT. 4413
(32c), as amended, and the Public Funds Investment Act (TEX. REV.
CIV. STAT. ACT. 842a-2), as amended. The investment pool must
comply with the requirements of the Public Funds Investment Act, as
amended, as follows:
a. The investment pool maintains a stable asset value as defined
in the Public Funds Investment Act;
b. The investment pool maintains a AAA rating by one of the
nationally recognized rating agencies;
c. The investment pool's maximum average dollar weighted
maturity does not exceed 90 days; and
d. The investment pool's continued compliance with the
remaining provisions of the Public Funds Investment Act.
e. The eligible investments of the pool are as follows: obligations
of the United States or its agencies and instrumentalities,
other obligations, the principal of and interest on which are
unconditionally guaranteed or insured by the United States,
fully collateralized repurchase agreements with a defined
termination date secured by obligations of the United States
or its agencies and instrumentalities, other obligations, the
principal of and interest on which are unconditionally
guaranteed or insured by the United States, and SEC
registered money market funds authorized by the Public
Funds Investment Act and rated in the highest category by at
least one nationally recognized rating agency, reverse
repurchase agreements with a term of no longer than 90
days.
f. Include in its investment policy and/or operating procedures
the following information: a description of eligible investment
securities and unacceptable investments, a written statement
on investment policy and objectives, a description of interest
calculations, distribution, and treatment of gains and losses,
security safeguarding, valuation collateralization and auditing,
and a fee schedule.
7. Direct repurchase agreements with primary security dealers or
financial institutions doing business in the State of Texas having a
defined termination date, and secured by U.S. Government or federal
agency securities, provided that the ownership of collateral for the
repurchase agreement is transferred to the Corporation, and deposited
with a safekeeping agent for the duration of the contract and a signed
master repurchase agreement has been executed with the
counterparty.
8. SEC-registered no-load money market mutual funds with a dollar
weighted average portfolio of 90 days or less whose assets consist
exclusively of United States Government Securities whose investment
objectives include seeking to maintain a stable net asset value of
$1.00 per share. Investment in mutual funds shall be limited to a
maximum of ten percent (10%) of the Corporation's available funds.
The Corporation is not required to liquidate an investment that was
authorized at the time of its purchase.
Unacceptable Investment Instruments
The following securities, although authorized by the Public Funds Investment
Act, are not eligible investments for the Corporation:
1. Collateralized mortgage obligations and/or obligations of the
following structure
a) obligations whose payment represents the coupon payments
on the outstanding principal balance of the underlying mortgage-
backed security collateral and pays no principal;
b) obligations whose payment represents the principal stream of
cash flow from the underlying mortgage-backed security
collateral and bears no interest;
c) collateralized mortgage obligations that have a stated final
maturity date of greater than 10 years; and
d) collateralized mortgage obligations the interest rate of which
is determined by an index that adjusts opposite to the changes
in a market index.
2. Commercial paper
3. Banker's acceptances
4. Reverse repurchase agreements (Local Government Investment
Pools which the Corporation participates in may engage in
reverse repurchase agreements if the term is 90 days or less)
5. No-load mutual funds other than SEC-registered no-load money
market mutual funds with a dollar weighted average portfolio of
90 days or less whose assets consist exclusively of United States
Government Securities whose investment objectives include
seeking to maintain a stable net asset value of $1.00 per share.
6. Guaranteed investment contracts
7. Share certificates of qualifying credit unions
Effect of Loss of Required Rating
An investment that requires a minimum rating does not qualify as an
authorized investment during the period the investment does not have a
minimum rating. The Investment Officer shall take all prudent measures that
are consistent with the Corporation's investment policy to liquidate the
investment(s) that does not have the minimum rating (2256.021). In
accordance with Section (2256.005(b)), the Investment Officer shall monitor
rating changes in current investments by keeping a monthly record of
ratings issued by three nationally recognized rating agencies.
Investment Strategy
The investment strategy by type of fund is as follows:
(1) Operating Funds
The investment strategy for operating fund(s) is to assure that anticipated
cash flows are matched with adequate investment liquidity. A secondary
objective is to create a portfolio, which will experience minimum volatility
during economic cycles. These funds shall not have an investment with a
stated maturity greater than two years and the weighted average maturity
shall not exceed eighteen months.
(2) Debt Service Funds
The investment strategy for debt service fund(s) is the assurance of
investment liquidity to cover the debt service obligations on the required
payment date. Investments purchased shall not have a stated final maturity
date which exceeds the corresponding debt service payment date. The
weighted average maturity shall not exceed one year.
(3) Reserve Funds
The investment strategy for reserve fund(s) is the assurance of investment
liquidity adequate to cover the debt service obligations not funded by debt
service funds on the required payment date. Investment of reserve funds
are controlled by their ordinance, resolution or indenture, and Federal and
State law. Bond documents must be examined for each issue, for potential
differences with this policy concerning investment instruments, maximum
maturity or average life restrictions, call dates or sinking fund redemptions,
and applicable arbitrage yields and rebate liability. Provisions contained in
the bond documents will supersede provisions of this policy. Weighted
average maturity shall be incompliance with bond requirements, as stated.
Reserve funds will be invested using a more conservative approach than the
current standard investment strategy when arbitrage rebate rules require
refunding excess earnings. All excess earnings received will be segregated
to allow a proper determination of interest income to be used in the
arbitrage calculation.
Maturity limitations for single issue reserve funds shall not exceed the
sooner of five (5) years, the call provisions of the bond ordinance, or the
final maturity of the bond issue.
Annually, the Board of the Corporation shall formally review the Investment
Policy and investment strategy contained with the Policy and record in
writing that is has reviewed the Policy and record any changes to either the
policy or strategy.
A. Diversification
The Corporation will attempt to limit the risk of loss through diversification of
its portfolio and to achieve the aforementioned investment strategies by
diversification of instruments.
Maximum
Diversification by Instrument
U.S. Treasury Obligations (Bills, Notes and Bonds),
U.S. Government Agency Securities,
and Instrumentalities of Government
Sponsored Corporations
Certificates of Deposit (CD's)
Commercial Bank's
Local Government Investment Pool
Tri-Party Repurchase Agreement
SEC registered, no-load mutual fund
Investment Procedures
Percent
of Portfolio
100%
75%
75%
75%
75%
10%
The Corporation shall enter the following agreements (if applicable):
safekeeping, PSA repurchase agreements, wire transfer agreements,
banking services contracts, and collateral/depository agreements. These
contracts shall include the explicit delegation of authority to persons
responsible for the transactions involving these agreements. No person
except those designated in the contract may engage in any investment
transactions.
On all funds invested in instruments as listed in "Permissible Investments"
numbers one through five, oral bids shall be requested from at least two
broker/dealers or national banks. The Corporation will accept the bid that
provides the highest rate of return within the maturity required and within
the parameters of this policy. Records will be kept of the bids offered, bids
accepted, and a brief explanation of the decision that was made regarding
the investment.
Qualified Institutions
As the Corporations investments are managed by the investment officers of
the City of Colleyville, the Corporation shall utilize the broker/dealers
selected by the City of Colleyville. All firms shall answer the Broker/Dealer
questionnaire (Appendix A) and submit their most recent audited financial
statements to the City for evaluation of credit worthiness. All personnel in
the firms who will be trading or quoting securities to the Corporation must
maintain a current NASD license and be registered to deal securities in the
State of Texas. An investment certification form (Appendix B) on the firm's
letterhead signed by a principal of the firm must be on file with the
Corporation.
Safekeeping
All marketable securities purchased by the Corporation shall be held in third
party safekeeping by an institution designated as primary agent. All
securities will be delivered to the third party institution by seller. Personnel
in the third party institution will verify the correct security was delivered by
the seller ("delivery vs payment"). The third party institution shall issue a
safekeeping receipt to the Corporation listing the specific instrument,
rate/yield, maturity, CUSIP, and other pertinent information. Collateral on
deposit type securities which exceed the FDIC coverage shall be held in a
third party safekeeping institution. In the event a third party safekeeping
institution is used, a collateral agreement shall be executed between the
Corporation, depository which pledged the collateral, and the third party
custodian of the collateral. The Corporation will retain possession of all
original safekeeping receipts and the receipts will state the security is
pledged to the Corporation. Either the Corporation Manager or the Finance
Manager must approve release of collateral in writing prior to its removal
from the safekeeping account.
Collateral Securities for Certificates of Deposit and Demand Accounts
The Corporation will accept as collateral for its Certificates of Deposit and
demand accounts the following securities:
A. FDIC coverage
B. U.S. Treasury bills, notes and bonds
C. United States Agency and instrumentalities bills or notes
D. GNMA mortgage backed fully modified pass through securities
E. Texas state, city county or school bonds with a remaining maturity
of seven years or less and a rating of "A" or better by Moody's,
Fitch, and Standard and Poor's.
F. Surety Bond
G. Federal Home Loan Bank Letter of Credit issued to the Corporation
Collateral shall be "marked to market" monthly by the Finance Manager. The
following percentages constitute the minimum market value for collateral
instruments that are pledged for the Corporation's Certificates of Deposit
and demand deposits.
Form of Collateral Pledged Collateral
1. U.S. Treasury bills, notes, and bonds
a. maturing within 1 year
b. maturing in 1-5 years
c. maturing in more than 5 years
2. Actively traded U.S. Government Agency securities
a. maturing in less than 1 year
b. maturing in 1-5 years
c. maturing in more than 5 years
Ratio
102%
105%
110%
103%
107%
115%
3. GNMA mortgage pass through securities 115%
4. Entities in the State of Texas bonds
General Obligation Bonds
a. maturing in less than 1 year 102%
b. maturing in 1-5 years 105%
c. maturing in more than 5 years 107%
Revenue Bonds
a. maturing in less than 1 year 105%
b. maturing in 1-5 years 110%
c. maturing in more than 5 years 115%
Collateral shall be audited annually be the Corporation's independent auditor and
may be audited by the Corporation at anytime during normal business hours of
the safekeeping bank.
Arbitrage
The Tax Reform Act of 1986 places limitations on the Corporation's yield from
investing certain tax-exempt bond proceeds, debt service funds and reserve
funds. The rebate provisions require that the Corporation compute earnings on
investments from certain issues of bonds on a periodic basis to determine if
rebate is required.
To determine the Corporation's arbitrage position, the Corporation is required to
calculate the actual yield earned on the investment of the funds and compare it to
the yield that would have been earned if the funds had been invested at a rate
equal to the yield on the applicable bonds sold by the Corporation. The rebate
provisions state that periodically (not less than once every five years and not later
than sixty days after maturity of the bonds), the Corporation is required to pay
the United States Treasury a rebate of any excess earnings. These restrictions
require extreme precision in the monitoring and record keeping of investments,
particularly in computing yields to ensure compliance. Failure to comply can
dictate that the bonds become taxable, retroactively from the date of issuance.
The investment strategy for bond funds which fall under the arbitrage provisions
of the Tax Reform Act of 1986, is that the Corporation will attempt to earn
maximum allowable bond yield with market conditions permitting.
Reporting Requirements
Included as a part of the City of Colleyville's quarterly investment report, Finance
Manager shall issue a written report concerning the Corporation's investment
transactions for the preceding quarter and describing in detail the investment
position of the Corporation as of the end of the quarter indicating the market
values of all investments held during the quarter. The report shall list for each
investment held during the quarter: the purchase price of the investment, the par
value of the investment, the market value of the investment at the beginning of
the quarter, market value of the investment at the end of the quarter, and fully
accrued interest for the period. The portfolio shall be marked to market monthly
and market pricing information is to be obtained through the use of appropriate
external third party software, third party safekeeping service, or a third party
independent pricing service. This report shall state its compliance with provisions
of the Public Funds Investment Act, as amended, and adopted investment policy
strategy. The report shall be signed by the General Manager and Finance
Manager and be reviewed annually by the City of Colleyville's external audit firm
as a part of the City of Colleyville's and Colleyville Economic Development
Corporation's annual audit and reported to the City Council.
Training Requirements
In accordance with the Act (2256.005 and 2256.008), the Finance Manager and
Finance Manager of the City of Colleyville shall attend 10 hours of investment
training within 12 months of assuming duties and 10 hours not less than once in a
two-year period that begins on the first day of the Corporation's fiscal year and
consists of the two consecutive fiscal years after that date. This training may be
obtained from the following sources: North Central Texas Council of Governments,
Government Treasurer's Organization of Texas, Government Finance Officer's of
Texas, Texas Municipal League or the University of North Texas Center for Public
Management. The training must include education in investment controls,
security risks, strategy risks, market risks, and any other topics as required by
the Public Funds Investment Act.
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 3d Agenda Date 08/28/2012 Number Resolution R-1Z-1Z1
Type Resolution
Denartment Citv Manaaer
Title
Approval of Colleyville Economic Development Corporation (CEDC) authorized
depository signatures
Explanation
Reading and Pub/ic Hearing
The CEDC authorized signers need to be updated on the CEDC checking account at
Wells Fargo, N.A., the depository bank. Per the attached Resolution R-12-121, the
following individuals are authorized signers: Jennifer Fadden, General Manager of the
Corporation, Terry Leake, Finance Manager of the Corporation and Karen Hines,
Finance Manager of the City of Colleyville. As a point of reference, the CEDC checking
account requires two signatures on all checks.
Financial Impact
There is no cost associated with update of authorized depository signatures.
Recommendation
Approve
Attachments
1. Resolution R-12-121
RESOLUTION R-12-121
A RESOLUTION APPROVING AUTHORIZED COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION (CEDC) DEPOSITORY SIGNATURES
WHEREAS, it is necessary to update the authorized signers on the
Colleyville Economic Development Corporation's (CEDC)
checking account at Wells Fargo Bank, N.A to Jennifer Fadden,
General Manager of the CEDC, Terry Leake, Finance Manager of
the CEDC, and Karen Hines, Finance Manager of the City of
Colleyville.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT the following individuals are authorized to be a signer on
the Colleyville Economic Development Corporation's checking
account at Wells Fargo Bank N.A. and any successor checking
accounts:
Jennifer Fadden
Terry Leake
Karen Hines
Sec. 2. THAT this Resolution shall become effective on the date of
passage.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, this August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 3e Agenda Date 08/28/2012 Number Resolution R-1Z-1ZZ
Type Resolution
Denartment Citv Secretarv
Title
Appointing a Colleyville Economic Development Corporation Board President and Vice
President
Explanation
Reading and Pub/ic Hearing
On August 23, 2011, the Colleyville Economic Development Corporation (CEDC) Board
of Directors elected Director David Kelly as President and Director Carol Wollin as Vice
President.
As per the CEDC bylaws, Article III, Officers, the President and Vice President shall be
elected by the Board and shall serve a term of one (1) year. The President and Vice
President shall continue to serve until their successors are appointed as provided in
Article II, Section I.
This item provides for the Board of Directors to elect a President and Vice President of
the CEDC.
Financial Impact
There is no financial impact.
Recommendation
Approve
Attachments
1. Bylaws excerpt
2. Colleyville Economic Development Corporation Board roster
3. Resolution R-12-123
CEDC Bylaws excerpt
C. The Secretary of the Corporation shall act as Secretary of all meetings of the
Corporation, but in the absence of the Secretary, the presiding officer may
appoint any person to act as Secretary of the meeting. The Secretary shall
keep minutes of the transactions of the Board and committee meetings and
shall cause such official minutes to be recorded in books kept for that
purpose in the principal office of the Corporation.
SECTION 6. COMMITTEES OF THE BOARD
An official committee of the Board shall consist of two (2) or more directors. It is
provided, however, that all final official actions of the Corporation may be exercised
only by the Board. Each committee so designated shall keep regular minutes of the
transactions of its meetings and shall cause such minutes to be recorded in books
kept for that purpose in the principal office of the Corporation.
SECTION 7. COMPENSATION OF DIRECTORS
The directors, including the President and Vice President, shall not receive any
salary or compensation for their services. However, directors may be reimbursed
for their actual expenses incurred in the performance of their duties hereunder,
including but not limited to the cost of travel, lodging and incidental expenses
reasonably related to the corporate duties of the Board. Travel expenses incurred
by directors for both regular and special meetings are not eligible for
reimbursement.
ARTICLE III.
OFFICERS
SECTION 1. TITLES AND TERM OF OFFICE
The President and Vice President shall be elected by the Board and shall serve a
term of one (1) year. The President and Vice President shall continue to serve until
their successors are appointed as provided in Article II, Section 1.
SECTION 2. POWERS AND DUTIES OF THE PRESIDENT
The President shall be the chief executive officer of the Corporation, and shall
preside at all meetings of the Board, and absent any different designation by a
majority of the Board, shall sign and execute all contracts, conveyances, franchises,
bonds, deeds, assignments, mortgages, and notes in the name of the Corporation.
In addition the President shall:
-4-
Colleyville Economic Development Corporation
PRESIDENT VICE PRESIDENT
David Kelly Carol Wollin
905 Inwood Lane 4600 Dartmoore Lane
Colleyville, TX 76034 Colleyville, TX 76034
H: (817) 656-1862 H: (817) 281-3058
dkelly(a~colleyville.com cwollin(a~colleyville.com
TERM:Jun 2010 - May 2013 TERM:Jun 2010 - May 2013
DIRECTOR DIRECTOR
Stan Hall Tom Hart
6229 Cimmaron Trail 1717 Avondale
Colleyville, TX 76034 Colleyville, TX 76034
H: (817) 488-2996 H: (817) 540-1171
shallCa~collevville.com thartCa~collevville.com
TERM:May 2011 - May 2014 TERM:JuI 2012 - May 2015
DIRECTOR DIRECTOR
Timothy Mark Kelso Mark Slosson
504 Bandit Trail 2407 Poplar Court East
Colleyville, TX 76034 Colleyville, TX 76034
W: (817) 269-4600 W: (817) 455-6900
timkelso(a~verizon.net H: (817) 540-3144
TERM:Oct 2011 - Sep 2013 slosson(a~verizon.net
TERM:Sep 2011 - Sep 2013
DIRECTOR FINANCE MANAGER
Carel Tornes Terry Leake
6712 Hillier Court 100 Main Street
Colleyville, TX 76034 Colleyville, TX 76034
H: (817) 788-5611 W: (817) 503-1115
careltornesla~amail.com tleake(a~colleyville.com
TERM:Sep 2011 - Sep 2013
GENERAL MANAGER SECRETARY
Jennifer Fadden Cynthia Singleton
100 Main Street 100 Main Street
Colleyville, TX 76034 Colleyville, TX 76034
W: (817) 503-1116 W: (817) 503-1133
Ifadden(a~colleyville.com csinqleton(a~collevville.com
08/20/2012
RESOLUTION R-12-122
A RESOLUTION APPOINTING A COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION BOARD PRESIDENT AND VICE
PRESIDENT
WHEREAS, the Bylaws of the Colleyville Economic Development
Corporation, Article III, Officers, Section 1, Titles and Term of
Office, state the President and the Vice President shall be
elected by the Board and shall serve a term of one year; and
WHEREAS, the President and Vice President shall continue to serve until
their successors are appointed as provided in Article II,
Section 1.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT Director
as President
Corporation.
Sec. 2
of the
THAT Director
as Vice President
Corporation.
AND IT IS SO RESOLVED.
shall be appointed to serve
Colleyville Economic Development
shall be appointed to serve
of the Colleyville Economic Development
PASSED AND ADOPTED, THIS August 28, 2012.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
David Kelly
President
ATTEST:
Cynthia Singleton, TRMC, CMC
City Secretary
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 4a Agenda Date 08/28/2012
Type Report
Department City Manager
Title
Annual Activity Report
Explanation
The Colleyville Economic Development Corporation bylaws require that the Board make
an annual report by February 1, 2013 to the City Council "reviewing the
accomplishments of the Corporation for the preceding year and the activities of the
Corporation for the budget year". Attached is the annual report that will be submitted
to the City Council at the September 4, 2012 City Council meeting.
Attachments
1. FY 2012 Annual Activity Report
ANNUAL REPORT OF THE COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION
ACTIONS OF THE CORPORATION
On August 23, 2011, the Board held its annual meeting and approved the FY 2011
annual budget for the Corporation with projected revenues of $1,898,691 and
expenses of $1,640,056. The Board also adopted the attached Exhibit "A"
Economic De~elopment Capital Impro~ement Program {EDCIP) for Fiscal Years
2012 through 201.6. Throughout the period of FY 2012-2Q16, projection of sales
tax growth conservati~ely remains at 1% annually throughout the next five years.
There was a reduction of projected interest ir~come, due to projected in~estment
return rates continuing to remain at record low le~els. There is the use of
available cash from the .4 times bond co~erage ratio in all years of the plan, with
the ending target fund balance in 2016 at a fevel slightly abo~e $850,000. In FY
2012, there was a carry forward of funding in the amount of $58,000 for the
incomplete project Pleasant Run Trail design (Bogart Drive to Mission Lane). ~n t~e
FY 2011 budget, there was funding for four part-time library clerk posit9ons related
~o the expa~sion of the second floor of the library. The project was completed and
the second floor opened on ]une 6, 2011. This resulted in a salary savings ofi
$46,532, and these sa~ings coupled with an additional $78,566, were alfocated for
the purchase of the remaining technology ($i3,152), furniture, fixtures and
equipment ($65,414) purchases rela~ed to the library expansion projec~ for use on
the second floor, teen room, first floor adult area and staff worfc area. There was
also funding included for ~he replacement of ~he Radio ~reque~cy Idenfiifica~ion
(RFID) equipment for library material check-out {$51,000}, which was installed
when the Library was opened in 2Q03. The existing RFID equipment and materiai
tags are no longer offered by the ~endor. The $134,905 balance of the Senior
Center Open Area Phase I remained allocated to a future parks project, pending
the completion of the Parks Master Plan in Fiscal year 2012. In FY 2013, there was
a carry forward of fund~ng in the amount of $165,000 for the incomplete project,
Cotton Belt II spur at Webb House. Funding was included for the replacement of
tables at ~he Colleyville Center ($9,000}, which are replacements of the original
tables purchased when the Colley~ille Center opened in 1998. For FY 2014, the
future projects category was increased to $400,000 from $50,004. For FY 2015,
the future projects allocation was increased from $30~,000 to $370,~00. Funding
was also included for the replacement of chairs at the Colleyville Center ($37,000).
The chairs are used at o~er 600 events annually and were last replaced in 2005.
The future projects allocation is $400,000 in FY 2016.
On August 14, 2012, the Board held a worksession to discuss the FY 2013-2017
EDCTP prior to the annual m~eting to be held or~ August 28, 20~2. The followi~g
changes were proposed from the FY 2012-2016 EDCIP:
Re~enues:
Projection of sales tax growtl~ conserva~ively remains at 1% annual~y throughout
the next fi~e years. Ther~ is a slight change from year to year due to the ar~nual
changes in in~estable cash from beginning fund balance in the two different EDCIP
plans. There is ~he use of available cash from the .4 times bond coverage ratio in
all years of the plan, with the ending target fund balance in 2017 at a le~e! slightly
abo~e $850,000.
Expenditures:
FY Z~13:
Carry forward of funding for incomplete projects - completion of Pleasant Run Trail
design (Bogart Dri~e to Mission Lane) -$41.,340 and the right-of-way acquisition
for the trail ($168,000). As was included in the appro~ed FY z012 - 2016 EDCIP,
there is fund9ng for the construction of the following trails: Pleasant Run
Trail (Bogart Drive to Mission Lane) -$Z77,000 and the Co~ton Belt II spur at
Webb House -$165,040. Funding is included for the replacement of tables
($12,0~0) and chairs ($41,000) at the Colley~ille Cent~r. These are used at over
600 e~ents annually, and are replacements of the original tables purchased when
the Colley~ille Center opened in 1998, and r~placeme~ts for the chairs acquired in
2005. The replacement of the chairs was moved in the EDCIP from FY 2015 to FY
2013 with a cost increase of $4~OOD due to the ir~clusion of delivery costs and
an increase in price. There was an increase of $3,00o for replacement of
additional tables that was scheduled for Fl' 201.3 in the prior EDCIP. Additionally,
funding is included for the replacement of the original flat roof area of the
Colleyville Cer~ter (~50,000) and the main air conditioning unit ($30,0~0), which is
the original unit that has been in service since 1998. The $134,905, wi~ich was
allocated to a future parks project, pending ~he completion of the Parks Master
Plan in Fl( 2012, has been aflocated to a rebranding study of the Senior Center
($35,000) and reno~ations to the Senior Center ($99,905). The rebranding study
was recommended in the Parks Master Plan, which was adopted by City Council on
December 6, 2011, and will propose additional uses for the Senior Center. It is
anticipated there will be reno~ations needed to accommodate the additional uses,
and there is a need for replacement of air conditioning components. There is also
$9,000 ~ncluded for the replacement of tables and chairs, which have been in use
since the Senior Center opened in 20~6. Las~ly, there is funding in the amount of
$1p0,000 for improvements to the Cotton Belt Trail at the L.D. Lockett Park
trailhead. This funding would be used for removal of the existing house from
the property, and possible improvements such as a co~ered shelter area, a picnic
Area, bike racks, and play elements.
FY 2014:
The future projects category was increased from $400,0~0 to $425,000.
FY Z015:
The future projects allocation is increased from $370,000 to $425,000.
FY Z0.16:
The future projects alloca~ion is increased from $400,000 to $425,000.
FY 2017:
The fu~ure projects alloca~ion is $450,000 and funding, in the amount of $25,000,
is included for the repfacement of the originaf stage curtain that has been in use
since 1998.
COLLEYVILLE ECONOMIC REVELQPMENT CORPORATION
ECONOMIC DEVELOPME[VT CAPiTAL IMP[20VEMENT PROGRAM FY 2012 - FY 2015
~ISCRL YEAR
BEGINNING FUN~ BALANCE
REVENUES:
PRO]ECTE~ 1/2 CENT 5ALE5 TAX REVENUE
INTEREST INCOME
USE OF AVAILABLE CASN
TOTAL REVENl1E5
EXPENDITURES:
OPERATENG:
AQMINISTRRT3V~
2005 ~EBT SERVICE & 1.4 TIME5 COUERAGE
PROMOTIONAL
WATER / WASTEWATER- MC PHERSON PARK
PERSONNEL-SENIOR CENTER
PER50NNEL- UBRARY
OPERATION5 - LIBRARY
CRPITAI.;
ENTERPUND LOAN-COLLEYVILLE CENTER RENOVATlONS
{$661,325 REPAID OVER 4 YEARS)
COLLEWI7~LE CENTER - REPLACEMENT TABLES
COLLEYVILLE CENTER - REPLACEMENT CHAIRS
LIBRARY SECON~ FLOOR EXPANSION
LT6RARY - COLlECTION SORTER
LIBRARY - BALANCE OF UiVUSE~ 2D11 SALARIES (FF&E}
LIBRARY - 5ECON~ ~LOOR, TEEN ROO~i AND FIRST FLOOR-TECHNOLOGY / FF&E
LIBRARY TECHNOLOGY REPLACEMENTS
CITYWIDE TRAIL SYSTES~A
COTTON SELT II SPUR @ WEB$ HOUSE CONSTRUCTION
COTI'ON BELT I! SPUR @ L.~. LOCKEff PARK CONSTRUCTION
PLEASANT RUN TRAIL DE5IGN (BDGARTTO hiE5510N)-CARRY FORWARp
PLEASANT RUN TRAIL ROW ACQUISITFQ3V (BOGARTTO MISSION)
PLEASANT RUN TR/4IL CONSTRUCTIOIV (BOGART TO MISSION)
fUTURE PRO]ECTS - PARKS
FUTURE PROJECTS
TOTAL EXPENDffURES
EXCE55 REVENUES OVfR EXPENDITURES
A~D $ACK .4 T[MES BON~ COVERAGE RATIO
EN~TNG FUN~ BALANCE
2011 2012
$2,173,015 $1,7D2,33A
$1,277,500 $1,29Q27S
$3,900 $3,405
$728,360 $605,011
$2,009,7b9 $1,898,fi91
$2,040 $2,000
$901,873 $905,223
$120,040 $129,368
$ifi,000 $16,480
$70,095 $70,045
$21,549 $69,024
$4,04fi $4,167
$155,331 $i65,331
$0 $0
$0 $0
$522,274 $0
$86,491 $0
~D $46,532
$0 $78,566
$U $51,004
2013
$1,355,958
$1,303,178
$2,712
$515,301
$f,821,190
$2,000
$907,711
$130,589
$16, 974
$72,148
$71,095
$4,292
$165,331
$9,000
$0
$0
$0
$0
$0
$0
2014
$1,f00,UQ4
$1,316,210
$2,2D0
$452,742
$1,771,151
$2,000
$9U2,482
$131, 841
$17,484
$74,364
$73,227
$A,421
$165,332
$0
$0
$0
$0
$0
$0
$0
EXHIBIT A
zai5 zoie
$995,114 $874,215
$1,329,372 $1,342,6fi5
$1,810 $1,748
$289,053 $282,430
$1,620,234 $1,626,843
$2,000 $2,000
$903,536 $410,584
$133,118 $134,441
$i8,OQ8 $18,548
$76,595 $78,693
$75,424 $77,687
$4,554 $4,690
$0 $0
$0 $0
$37,000 $0
$0 $0
$0 $Q
$0 $0
$0 $0
$0 $0
$0 $0 $165,000 $0 $0 $0
~ioo,aoo so $o ~o ~a ~o
$0 $58,000 $0 $6 $0 $0
$0 $158,004 $0 $D $0 $0
$o ~o ~z»,aoa ~o ~o ~o
$0 $134,9p5 $0 $0 $0 $0
$q $p $0 $400,000 $370,000 $400,900
$2,069,759 $1,89B,691 $1,821,191 $1,771,151 $1,620,235 $1,626,844
$0 $0 $0 $0 $0 $0
$z57,678 $258,635 $259,346 $257,852 $258,153 $260,167
$1,702,334 $1,355,958 $1,100,004 $905,114 $874,215 $851,953
ASSUMPTIONS: FY 2012; 1/2 OF CITY SALES TAX BUDGET PRO]ECl'ION / FY 2013 - 2016: 1°h GROWTH
`'~ Y °F City of Colleyville
~+'~ City Hall
CC~LLEYVILLE Colleyville Economic 100 Main Street
Colleyville, Texas 76034
,. F y,a ; Development Corporation www.colleyville.com
Board
Agenda Briefing
Agenda Number 4b Agenda Date 08/28/2012
Type Report
Department City Manager
Title
Annual Investment Report
Explanation
From the period of October 1, 2011 through July 31, 2012, the Colleyville Economic
Development Corporation had an average of $1,148,914 invested in the Local
Government Investment Cooperative (LOGIC) Pool, earning $2,302 during this period.
From the period of October 1, 2011 through June 30, 2012, the Corporation held a
Treasury note with a par value of $550,000, that earned $835. Currently, the
Corporation holds a Treasury note with a purchase price of $554,469 (par value
$550,000) and a market value of $554,104, yielding 0.164%, which will mature
December 15, 2013.
Attachments