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HomeMy WebLinkAboutAudit Committee-Agenda Packets-08/03/2021City of Colleyville        Page 1 City of Colleyville Audit Committee Agenda City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, August 3, 2021 5:00 p.m. City Manager’s Conference Room Third Floor – City Hall 1.CALL TO ORDER 2.APPROVAL OF MINUTES April 20, 2021 3.REGULAR AGENDA ITEMS 3a Discussion of the Fiscal Year September 30, 2021, audit which will be conducted by the City's audit firm Weaver and Tidwell 3b Presentation of the third quarter FY21 investment report 4.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, July  30, 2021, by 5:00 p.m. Christine Loven, TRMC City Secretary A  quorum  of  the  Colleyville  City  Council  and/or  any  other  Colleyville  Board,  Commission, or Committee may be in attendance at this meeting. Any  matter  on  this  agenda  may,  at  the  discretion  of  the  governing  body,  be  opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special  accommodations, please advise Executive Secretary at least 48 hours in advance  at 817.503.1111, and reasonable accommodations will be made to assist you. City of Colleyville Page 1 City of Colleyville Audit Committee Minutes City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Tuesday, April 20, 2021 5:00 p.m. City Manager’s Conference Room Third Floor – City Hall 1. CALL TO ORDER City Secretary Christine Loven called the Audit Committee to order at 5:00 p.m. on April 20, 2021. ROLL CALL: Committee members present George Dodson, Bobby Lindamood, and Chuck Kelley. Also Present: Finance Director Kyle Lester, City Manager Jerry Ducay, Assistant City Manager Mark Wood, and City Secretary Christine Loven 2. APPROVAL OF MINUTES February 2, 2021 The minutes were approved as presented. 3. REPORTS Quarterly Investment Report for the quarter ended March 31, 2021 Finance Director Kyle Lester reviewed the quarterly investment report and noted rates are still falling due to the pandemic, but the City is stilling doing well. There was general discussion regarding the sweep accounts, investments in CD’s, and pools. Interest earnings for the quarter were $29,774 compared to $39,784 in the previous quarter. This decrease is reflective of a declining interest rate market. Staff will continue to examine cash-flow needs and place our resources in instruments with an emphasis on keeping these funds safe while earning as strong a yield as possible. There was discussion of the Hotel Tax Fund use and of the value earned from the bond payoff. The Finance Director will add a new table to indicate the savings overall due to the bond payoff. 4. ADJOURNMENT The meeting was adjourned at 5:20 p.m. City of Colleyville Page 2 Audit Committee Minutes April 20, 2021 Minutes taken and prepared by: Christine Loven, TRMC City Secretary City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3a Agenda Date 8/3/2021 Number Type Regular Agenda Items Department Finance Title Discussion of the Fiscal Year September 30, 2021, audit which will be conducted by the City's audit firm Weaver and Tidwell Explanation Discuss the Fiscal Year September 30, 2021 audit which will be conducted by the City's audit firm Weaver and Tidwell Attachments City of Colleyville Page 1 City of Colleyville Audit Committee Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3b Agenda Date 8/3/2021 Number Type Regular Agenda Items Department Finance Title Presentation of the third quarter FY21 investment report Explanation Cash and Cash Equivalents (local government investment pools) totaled $52,912,874. Colleyville's complete portfolio was valued at $71,024,713 and was allocated as follows: Instrument Current as of 6/30/2021 Last Quarter as of 3/31/2021 Cash $ 10,862,280 $ 12,001,929 LOGIC (CP Permissible)$ 2,496,085 $ 2,495,425 Other Governmental Pools $ 39,554,510 $ 43,550,959 CD’s $ 13,007,641 $ 12,751,375 CDARS $ 1,604,198 $ 1,604,198 Agencies $ 3,500,000 $ 3,500,000 Total Cash & Investments $ 71,024,713 $ 75,903,887 Instrument Yield this quarter LOGIC (CP Permissible)0.07 % Other Governmental Pools 0.05 % CD’s 0.49 % CDARS 0.50 % Agencies 0.18 % Total Consolidated Yield 0.15 % Benchmark Yield: 0.02% Interest earnings for the quarter were $21,941 compared to $29,774 in the previous quarter. This decrease is reflective of a declining interest rate market as well as several maturities coming due in the last quarter. Staff will continue to examine cash-flow needs and place our resources in instruments with an emphasis on keeping these funds safe while earning as strong a yield as possible. Attachments 1. Investment Report - June 2021 2. June 2021 6/30/2021 City of Colleyville, TX Quarterly Investment Report Quarterly Investment Report City of Colleyville, TX 6/30/2021 Weighted 3/31/2021 6/30/2021 Change Maturity Cash 12,001,929$ 10,862,280$ (1,139,649)$ Liquid Sweep Account -$ -$ -$ Liquid LOGIC (CP Permiss.)2,495,425$ 2,496,085$ 660$ Liquid Other Gov't Pools 43,550,959$ 39,554,510$ (3,996,450)$ Liquid Subtotal 58,048,313$ 52,912,874$ (5,135,439)$ CD's 12,751,375$ 13,007,641$ 256,266$ 338 days CDARS 1,604,198$ 1,604,198$ -$ 71 days Agencies 3,500,000$ 3,500,000$ -$ 491 days Subtotal 17,855,573$ 18,111,839$ 256,266$ 344 days Total Resources 75,903,887$ 71,024,713$ (4,879,173)$ Criteria Met? Policy Max 3/31/2021 6/30/2021 U.S. Treasuries 100%0%0% U.S. Agencies 75%5%5% CD's 75%17%18% Local Gov't Pools 75%61%59% CDARs 75%2%2% Tri-Pty Repurchase 75%0%0% Cash/Sweep N/A 16%15% Where is Colleyville's cash? Diversity Snapshot vs. Policy Requirements 0%0%10%SEC Registered, No- Load Mutual Funds Cash/ Equivalents Bonds/CDs/Ag encies Investments on the move… Since our last investment report, the City has had three CD's mature, totaling a little over $1.5 million in funds. These CD's had a weighted averagematurity of almost 2.5 years and an average return of 1.83%. In response, staff reinvested all of those proceeds and more in four separate CD's, totaling $1,774,658. Those CD's have a weighted average maturity of over 1.5 years and an average return of 0.24%.As of July, the 13-week treasury is currently sitting at 5 basis points while government pools are averaging less than 2 basis points. Staff will continue to look for opportunities to maximize cash in our reserve funds by moving them away from pools. However, with the City's cash-funded capital improvement program ongoing, the City is expected to transition to higher liquidity, meaning lower balances in investments. The Federal Reserve has indicated their intention to keep borrowing rates low through 2022/2023. 2 Quarterly Investment Report City of Colleyville, TX 6/30/2021 Benchmark =13-Week Treasury Before the recent downturn Colleyville's investment returns had been climbing steadily since 2016, primary due to to more active investment practices.Although we are in a down-cycle in terms of returns, we've still been able to stay ahead of our 13-week treasury benchmark.Most importantly,Colleyville's funds are safe.While staff will continue to seek a solid yield on the portfolio,the highest value is placed on maintaining a low risk in order to ensure the safety and liquidity of the funds entrusted to us. How do our returns compare? The City's total consolidated return is 0.15%as of June 30,2021.While this remains low,particularly as older investments mature,this does compare favorably with the 13-week treasury note benchmark listed in Colleyville's investment policy.A major reason for this is the pandemic,which prompted a a rate cut at the Federal Reserve affecting our pool and sweep account rates.Additionally,stock market volatility urged investors to flock to the fixed income markets,which further decreased returns.While currently heavily invested in pools, staff will seek out agencies to diversify our portfolio as liquidity needs allow. 0.02% 0.15% 0.03% 0.49%0.50% 0.18% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 13-Wk T Consolidated Return Pools CD's CDARS Agencies Third Quarter, FY21 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 6/1/2020 9/1/2020 12/1/2020 3/1/2021 6/1/2021 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% Historical Return Return Rate Interest Earned 3 Quarterly Investment Report City of Colleyville, TX 6/30/2021 3/31/2021 6/30/2020 Thru Thru 6/30/2021 6/30/2021 As the graph above shows,the City had begun moving its investments away from agency securities and more toward local government pools from 2017 through 2019.Money stored in these pools tended to earn a decent return compared to market while also being considered "liquid",as the City can withdraw its funds within 24 hours in most cases.However,as pool rates have plummeted,returns on certificates of deposit and even some agency debt has looked attractive.Additionally,the years in which the cash in our bank was higher is actually indicative of a sweep account we previously held with Wells Fargo,when they served as our depository.Frost Bank offers a similar instrument,but the rates are such that using the instrument would be cost-prohibitive.Staff will reconsider this option as rates rise back up. What have we earned the past three months? For the past year? Compared to the average quarterly return for the past 12 months,the most recent quarter is showing a predictable decrease in both the rate of return and actual dollars earned.As noted,fixed-income rates have come down considerably as investors flocked to the fixed income market amidst the global pandemic.Additionally,a robust,5-year capital improvement plan has begun,necessitating higher liquidity than in previous years.Hopefully we won't see rates dip much lower,although there is no guarantee.Regardless,staff will always monitor the market and manage Colleyville's portfolio with emphasis on diversity and cash-flow needs. $21,941; 0.15%$38,484; 0.25% Current Total Quarterly Average How has our portfolio changed over time? 47% 24%27% 15% 30% 60%58% 59% 10%18%3% 3% 2%2%19%12%3%5% 2018 2019 2020 2021 PORTFOLIO COMPOSITION Bank Pools CD's CDARS Agencies 4 Quarterly Investment Report City of Colleyville, TX 6/30/2021 For any questions or comments on this report, please contact Also included: Kyle Lester, CGFO Maturities/Purchases City of Colleyville, TX Investment Listing Finance Director 817-503-1014 Mark-to-Market klester@colleyville.com Signed: This investment report is in compliance with the Public Funds Investment Act as well as the City of Colleyville's investment policy and procedures. Per State law, Colleyville is only permitted to invest in certain fixed income securities, whos performance ties closely with the Federal Funds rate.As the chart above shows, the rates of our 13- week treasury benchmark as well as our pools tend to move in lock-step with the Federal Reserve's rate actions. This rate was cut five times in the past year and now remains at close to 0. How long it will remain there depends on the duration of our decreased economic activity, although we can likely expect very low rates through 2022 and potentially 2023. What influences our rate of return? - 0.50 1.00 1.50 2.00 2.50 3.00 Influence of Federal Funds Rate on Fixed Income Market 13-Wk Coupon Fed Funds Rate Avg Pools 5 Quarterly Investment Report City of Colleyville, TX 6/30/2021 What has matured in the last 12 months? FHLB Note (313383HU8)500,000$ 8/16/2019 6/12/2020 1.75%7,216$ Brokered CD (FDIC #32992)245,000$ 9/19/2019 9/25/2020 1.80%4,495$ Brokered CD (FDIC #34221)245,000$ 9/19/2019 9/25/2020 1.80%4,495$ Brokered CD (FDIC #34775)245,000$ 9/19/2019 9/25/2020 1.85%4,619$ Brokered CD (FDIC #16022)249,675$ 9/18/2019 9/11/2020 1.75%4,297$ State of Texas Note (882724PY7)2,515,325$ 3/23/2020 8/27/2020 2.50%27,059$ CDARS - Worthington 1,575,617$ 9/18/2019 9/17/2020 1.80%28,361$ FAMCA Note (3130A94N8)2,000,000$ 12/4/2019 5/25/2020 1.71%16,210$ Brokered CD (FDIC #628)248,000$ 2/11/2020 7/31/2020 1.75%2,033$ Brokered CD (FDIC #16571)247,000$ 9/19/2019 10/20/2020 1.80%4,836$ Brokered CD (FDIC #35141)247,000$ 9/19/2019 10/27/2020 1.85%5,058$ Brokered CD (FDIC #2270)247,000$ 9/19/2019 12/24/2020 1.80%5,628$ Brokered CD (FDIC #58647)245,000$ 10/4/2019 10/9/2020 1.75%4,358$ Brokered CD (FDIC #27237)245,000$ 10/4/2019 10/9/2020 1.75%4,358$ Brokered CD (FDIC #12855)245,000$ 10/4/2019 10/9/2020 1.75%4,358$ Brokered CD (FDIC #58658)249,000$ 10/4/2019 10/9/2020 1.75%4,429$ Brokered CD (FDIC #57777)245,000$ 10/4/2019 10/16/2020 1.75%4,440$ Spirit of Texas Jumbo CD 1,013,567$ 12/5/2019 12/5/2020 1.79%18,193$ Brokered CD (FDIC #58243)250,000$ 10/4/2019 1/19/2021 1.70%5,508$ Brokered CD (FDIC #26876)250,000$ 2/28/2020 3/10/2021 1.40%3,605$ Brokered CD (FDIC #58577)246,000$ 2/6/2020 2/12/2021 1.60%4,011$ Brokered CD (FDIC #18503)246,000$ 2/6/2020 2/12/2021 1.60%4,011$ Brokered CD (FDIC #3511)249,000$ 10/4/2019 4/19/2021 1.90%7,297$ Spirit of Texas Jumbo CD 1,025,023$ 10/24/2019 4/24/2021 1.85%28,470$ Brokered CD (FDIC #110)249,000$ 2/14/2020 5/14/2021 1.65%5,122$ Total Matured 11,799,184$ 2.14%171,578$ APPENDIX Purchase Date Maturity DatePar Amount Yield to Maturity Total ReturnInvestment 6 Quarterly Investment Report City of Colleyville, TX 6/30/2021 What have we purchased within the last 12 months? Brokered CD (NCUA #60269)249,000$ 8/10/2020 8/18/2022 0.30%1,510$ Brokered CD (FDIC #23623)250,000$ 8/24/2020 2/24/2022 0.20%752$ Brokered CD (FDIC #33686)249,000$ 8/26/2020 8/26/2022 0.20%996$ Spirit of Texas Jumbo CD 1,502,432$ 9/9/2020 9/9/2021 0.65%9,766$ CDARS - Worthington 1,604,198$ 9/9/2020 9/9/2021 0.50%8,021$ Brokered CD (FDIC #16022)247,000$ 11/9/2020 11/9/2022 0.20%988$ Brokered CD (FDIC #8120)247,000$ 12/23/2020 12/23/2022 0.20%988$ Brokered CD (FDIC #33954)256,586$ 12/22/2020 10/12/2022 0.20%927$ Brokered CD (FDIC #4297)256,481$ 12/22/2020 10/12/2022 0.20%926$ Brokered CD (FDIC #34953)249,000$ 11/16/2020 11/16/2022 0.20%996$ Brokered CD (NCUA #17587)247,000$ 10/29/2020 10/28/2022 0.25%1,233$ Brokered CD (FDIC #845)249,187$ 11/20/2020 6/27/2022 0.20%797$ Brokered CD (FDIC #35141)249,000$ 11/20/2020 11/21/2022 0.20%997$ Spirit of Texas Jumbo CD 1,021,861$ 12/11/2020 12/10/2021 0.55%5,605$ FFCB Note (3133EMHE5)1,500,000$ 12/11/2020 11/30/2022 0.170%5,023$ FFCB Note (3133EMCU4)2,000,000$ 10/13/2020 10/13/2022 0.190%7,600$ Brokered CD (FDIC #32992)244,201$ 10/1/2020 4/2/2022 0.186%682$ Brokered CD (FDIC #17739)240,204$ 8/28/2020 8/29/2022 0.200%962$ Brokered CD (FDIC #148)245,000$ 10/14/2020 10/14/2022 0.150%735$ Brokered CD (NCUA #619)246,000$ 2/21/2021 2/13/2023 0.15%730$ Brokered CD (FDIC #58979)246,000$ 2/19/2021 2/21/2023 0.15%740$ Brokered CD (FDIC #19008)249,000$ 3/30/2021 3/30/2023 0.20%996$ Brokered CD (FDIC #57742)249,000$ 3/30/2021 3/30/2023 0.20%996$ Brokered CD (FDIC #57873)249,000$ 3/31/2021 3/31/2023 0.15%747$ Frost Bank Jumbo CD 1,500,000$ 2/25/2021 2/25/2022 0.16%2,400$ Brokered CD (#33539)249,000$ 6/30/2021 6/30/2023 0.25%1,245$ Brokered CD (#12858)248,000$ 6/29/2021 6/29/2023 0.15%744$ Spirit of Texas Bank (LOC 17001779 $1.875m, exp 5/15/2021)1,028,658$ 4/29/2021 10/29/2022 0.30%4,633$ Brokered CD (#26876)249,000$ 4/8/2021 4/7/2022 0.10%248$ Total Purchased 13,846,149$ 0.33%49,505$ Weighted Average Maturity 642 days Yield to MaturityInvestment APPENDIX Total ReturnPar Amount Purchase Date Maturity Date 7 Quarterly Investment Report City of Colleyville, TX 6/30/2021 Full Investment Listing Brokered CD (FDIC #27389)249,000$ 2/11/2020 2/22/2022 1.70%8,605$ Brokered CD (FDIC #57803)247,000$ 2/12/2020 1/31/2022 1.70%8,271$ Brokered CD (FDIC #34742)249,000$ 2/28/2020 3/21/2022 1.40%7,182$ Brokered CD (FDIC #58665)249,000$ 2/28/2020 9/7/2021 1.55%5,890$ Brokered CD (FDIC #35546)249,000$ 2/28/2020 3/28/2022 1.55%8,026$ Brokered CD (FDIC #58978)248,000$ 3/6/2020 3/28/2022 1.05%5,365$ Brokered CD (FDIC #33555)248,000$ 3/6/2020 3/21/2022 0.98%4,935$ Brokered CD (FDIC #57565)249,000$ 3/6/2020 3/11/2022 1.00%5,014$ Brokered CD (FDIC #19581)250,000$ 3/6/2020 3/21/2022 0.90%4,592$ Brokered CD (NCUA #68712)249,000$ 3/10/2020 9/20/2021 1.00%3,813$ Brokered CD (NCUA #60269)249,000$ 8/10/2020 8/18/2022 0.30%1,510$ Brokered CD (FDIC #23623)250,000$ 8/24/2020 2/24/2022 0.20%752$ Brokered CD (FDIC #33686)249,000$ 8/26/2020 8/26/2022 0.20%996$ Brokered CD (FDIC #17739)240,204$ 8/28/2020 8/29/2022 0.200%962$ Spirit of Texas Jumbo CD 1,507,308$ 9/9/2020 9/9/2021 0.65%9,798$ CDARS - Worthington 1,604,198$ 9/9/2020 9/9/2021 0.50%8,021$ Brokered CD (FDIC #32992)244,201$ 10/1/2020 4/2/2022 0.186%682$ FFCB Note (3133EMCU4)2,000,000$ 10/13/2020 10/13/2022 0.190%7,600$ Brokered CD (FDIC #148)245,000$ 10/14/2020 10/14/2022 0.150%735$ Brokered CD (NCUA #17587)247,000$ 10/29/2020 10/28/2022 0.25%1,233$ Brokered CD (FDIC #16022)247,000$ 11/9/2020 11/9/2022 0.20%988$ Brokered CD (FDIC #34953)249,000$ 11/16/2020 11/16/2022 0.20%996$ Brokered CD (FDIC #845)249,187$ 11/20/2020 6/27/2022 0.20%797$ Brokered CD (FDIC #35141)249,000$ 11/20/2020 11/21/2022 0.20%997$ Spirit of Texas Jumbo CD 1,020,893$ 12/11/2020 12/10/2021 0.55%5,600$ FFCB Note (3133EMHE5)1,500,000$ 12/11/2020 11/30/2022 0.170%5,023$ Brokered CD (FDIC #33954)256,586$ 12/22/2020 10/12/2022 0.20%927$ Brokered CD (FDIC #4297)256,481$ 12/22/2020 10/12/2022 0.20%926$ Brokered CD (FDIC #8120)247,000$ 12/23/2020 12/23/2022 0.20%988$ Brokered CD (FDIC #58979)246,000$ 2/19/2021 2/21/2023 0.150%740$ Brokered CD (NCUA #619)246,000$ 2/21/2021 2/13/2023 0.150%730$ Frost Bank Jumbo CD 1,500,000$ 2/25/2021 2/25/2022 0.160%2,400$ Brokered CD (FDIC #19008)249,000$ 3/30/2021 3/30/2023 0.200%996$ Brokered CD (FDIC #57742)249,000$ 3/30/2021 3/30/2023 0.200%996$ Brokered CD (FDIC #57873)249,000$ 3/31/2021 3/31/2023 0.150%747$ Brokered CD (#33539)249,000$ 6/30/2021 6/30/2023 0.25%1,245$ Brokered CD (#12858)248,000$ 6/29/2021 6/29/2023 0.15%744$ Spirit of Texas Bank (LOC 17001779 $1.875m, exp 5/15/2021)1,028,658$ 4/29/2021 10/29/2022 0.30%4,633$ Brokered CD (#26876)249,000$ 4/8/2021 4/7/2022 0.10%248$ Investment Par Amount Purchase Date Maturity Date Yield to Maturity Total Return APPENDIX 8 Quarterly Investment Report City of Colleyville, TX 6/30/2021 Full Investment Listing (Continued) Total 18,111,715$ 0.43%124,705$ Weighted Average Maturity 337 days Investment Par Amount Purchase Date Maturity Date Yield to Maturity Total Return 9 Quarterly Investment Report City of Colleyville, TX 6/30/2021 Mark-to-Market 3/31/2021 6/30/2021 Market Value Market Value Brokered CD (FDIC #34742)249,000$ 252,185$ 251,428$ 2,428$ Brokered CD (FDIC #27389)249,000$ 252,611$ 251,642$ 2,642$ Brokered CD (FDIC #58665)249,000$ 250,626$ 249,695$ 695$ Brokered CD (FDIC #57803)247,000$ 250,374$ 249,386$ 2,386$ Brokered CD (FDIC #35546)249,000$ 252,613$ 251,769$ 2,769$ Brokered CD (FDIC #58978)248,000$ 250,386$ 249,850$ 1,850$ Brokered CD (FDIC #33555)248,000$ 250,225$ 249,711$ 1,711$ Brokered CD (FDIC #57565)249,000$ 251,159$ 250,641$ 1,641$ Brokered CD (NCUA #68712)249,000$ 250,113$ 249,525$ 525$ Brokered CD (FDIC #19581)250,000$ 251,979$ 251,532$ 1,532$ Spirit of Texas Bank CDs (2)2,528,201$ 2,523,570$ 2,528,201$ -$ Brokered CD (NCUA #60269)249,000$ 249,630$ 249,530$ 530$ Brokered CD (FDIC #23623)250,000$ 250,273$ 250,239$ 239$ Brokered CD (FDIC #33686)249,000$ 249,463$ 249,391$ 391$ Spirit of Texas CD (New)1,028,658$ N/A 1,028,658$ -$ CDARS - Worthington 1,604,198$ 1,604,198$ 1,604,198$ -$ Brokered CD (FDIC #16022)247,000$ 247,269$ 247,198$ 198$ Brokered CD (FDIC #8120)247,000$ 247,091$ 247,027$ 27$ Brokered CD (FDIC #33954)256,586$ 255,410$ 254,054$ (2,531)$ Brokered CD (FDIC #4297)256,481$ 255,410$ 254,054$ (2,426)$ Brokered CD (FDIC #34953)249,000$ 249,271$ 249,192$ 192$ Brokered CD (NCUA #17587)247,000$ 247,042$ 247,042$ 42$ Brokered CD (FDIC #845)249,187$ 249,286$ 249,264$ 77$ Brokered CD (FDIC #35141)249,000$ 249,269$ 249,189$ 189$ FFCB Note (3133EMHE5)1,500,000$ 1,499,655$ 1,498,560$ (1,440)$ FFCB Note (3133EMCU4)2,000,000$ 2,000,000$ 2,000,000$ -$ Brokered CD (FDIC #32992)244,201$ 247,305$ 242,376$ (1,825)$ Brokered CD (FDIC #17739)240,204$ 240,276$ 240,235$ 31$ Brokered CD (FDIC #148)245,000$ 245,086$ 245,056$ 56$ Brokered CD (FDIC #58979)246,000$ 245,995$ 245,884$ (116)$ Brokered CD (NCUA #619)246,000$ 246,002$ 245,897$ (103)$ Frost Bank Jumbo CD 1,500,000$ 1,500,000$ 1,500,000$ -$ Brokered CD (FDIC #19008)249,000$ 249,212$ 249,035$ 35$ Brokered CD (FDIC #57742)249,000$ 249,209$ 249,035$ 35$ Brokered CD (FDIC #57873)249,000$ 248,960$ 248,816$ (184)$ Brokered CD (#33539)249,000$ N/A 249,125$ 125$ Brokered CD (#12858)248,000$ N/A 247,630$ (370)$ Brokered CD (#26876)249,000$ N/A 249,080$ 80$ Total 18,111,715$ 16,361,154$ 18,123,146$ 11,430$ APPENDIX Investment Par Amount Unrealized Gain/(Loss) since Purchase 10 Quarterly Investment Report City of Colleyville, TX 6/30/2021 MBS MBS MBS MBS MBS Note about mark-to-market:This analysis takes a snapshot look at each of the securities Colleyville holds and values them based on what the market would pay for them today.An unrealized gain in market value would indicate the security's value has gone up since the last mark-to-market,and an unrealized loss would indicate the value has gone down.However,the City of Colleyville's strategy is to buy securities and hold them to maturity to receive the agreed-upon interest payments (known as "buy and hold").Therefore,any change in market value will not be realized by the City.The primary purpose of this analysis,as required by the Public Funds Investment Act,is to demonstrate the current market value of the City's portfolio should we need to liquidate it in the case of an emergency.This scenario is extremely unlikely,given the prudence Colleyville's leaders have shown in their financial decisions. It is important to remember this when looking at our quarterly mark-to-market analysis. APPENDIX 11 Quarterly Investment Report 3rd Q, FY2021 August 3, 2021 As required by the Public Funds Investment Act, §2256.023 Cash Position Overview [PERCENTAGE ] [PERCENTAGE ] [PERCENTAGE ] [PERCENTAGE ] Cash/Sweep Pools CD/CDARS Agencies Return Summary 0.02% 0.15% 0.03% 0.49%0.50% 0.18% Third Quarter, FY21 13-Wk T Consolidated Return Pools CD's CDARS Agencies 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 03/31/2021: [VALUE] 06/30/2021: [VALUE] Rate of Return 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.18% 0.20% 0.22% Return Summary Historical Return 43983 44075 44166 44256 44348 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% $ - $ 20,000 $ 40,000 $ 60,000 $ 80,000 $ 100,000 $ 120,000 Return Rate Interest Earned Influence of Federal Funds Rate on Fixed Income Market 4148541638417894194242093422464239942551427044285543008431594330943462436134376643918440714422444375 - 0.50 1.00 1.50 2.00 2.50 3.00 13-Wk Coupon Fed Funds Rate Avg Pools Mark-to-Market Public Funds Investment Act Requirement Mark-to-Market: A snapshot of what our investments would sell at compared to what we purchased them for. •Purpose is to show our overall portfolio value •We hold our investments until maturity (“buy and hold” strategy) •Gains and losses shown in this analysis are unrealized Par Value 03/31 Value Total Gain (loss) on Purchase Price $ 18,111,715 $ 18,123,146 $ 11,430 CEDC Payoff December 2020: Paid off $4.775m in CEDC Bond principle. •Total interest saved through 2027 = $645,000 (2.88% interest) •$117,000 was to be paid in FY21 •Currently earning 0.15% aggregate ~ $7,100 in interest earning potential •Would have been a net FY21 loss of $109,900 ($117,000 - $7,100 in earning potential) •If we count the interest we would have paid as a net benefit to the City, our aggregate return rate would actually be closer to 0.25%. 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