Third Quarter FY 2015 Finance ReportCITY OF
SOUTHLAKE
Quarterly Review
For the period ended
June 30, 2015
�
Opk
SOUTHLAKE
TEXAS
Finance Department's
Quarterly Review
For the period ended June 30, 2015
City of Southlake
August 2015
Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Re: Third Quarter
FY 2015 Financial Report
Date: August 31, 2015
The finance department is pleased to submit a financial report for the third quarter of
FY 2015 for the period ended June 30, 2015. This report contains financial statements
for the City's operating funds and selected special revenue funds, status reports of the
Capital Projects and a report of the City's Investment portfolio.
GENERAL FUND REVENUES
Property tax. In the General Fund, $18,848,841 of $19,561,715 or 96.4% of budgeted
property tax has been collected. Since property tax bills are delinquent as of February 1,
most tax collections are received in the first four months of the fiscal year. It is
anticipated that collections will meet projections. Tarrant County has collected the City's
taxes since 1982.
Sales tax. Sales tax budgeted for Fiscal Year 2015 is $12,022,000. For FY 2015 third
quarter (October through April) the City has collected $8,992,026 in sales tax. This is
51.4% or $2,398,266 above the projected amounts to date. The increase is due to a
couple of reasons, 1) a large payment received with January collections as a result of an
audit of prior collections covering the period from 2010 through 2013 and 2) the budget
collections are net Grand Avenue 380 agreement and actual collections include 100% of
Grand Avenue collections sales tax. Net the audit adjustment and the Grand Avenue 380
payments, sales tax collections are 6.2% above budget. It is anticipated that sales tax
revenue will be above budgeted amounts therefore a budget amendment was
recommended in the amended budget.
Franchise fees. Franchise fees include amounts received for use of public rights of way
from utility companies. To date the City has received $2,253,249 of $2,736,404
budgeted. FY 2015 collections are comparable to prior year's collections. A large
portion of the franchise fees are collected in the fourth quarter of the fiscal year. Tri-
County paid their second semi-annual payment in July.
P Fines/Forfeitures. Revenues from Fines and Forfeitures are $918,842, which is 82.4% of
the $1,115,000 budgeted. This revenue source depends on many variables, such as the
number of citations issued, warrants issued and collected, plus the number of cases
assigned to deferred adjudication. As planned, citation volume is lower for third quarter
FY 2015 compared to third quarter FY 2014. Citation volume is expected to remain
f 11 consistent and revenues from fines are anticipated to meet budget.
Charges for services. This category includes revenue from ambulance transport,
recreation class fees, and amounts received from the Cities of Grapevine, Colleyville and
Keller for participation in the Teen Court program. Revenues to date total $978,012,
compared with $903,100 collected for the same period in the prior year. The majority of
' the revenue for this category is seasonal and collected during the summer months. It is
�► anticipated that revenue from Charges for Services will be within budgeted amounts.
4'
Permits/fees. Revenues from permits and fees are $1,987,649 or 134.1% of the budgeted
f"'
amount of $1,482,300. This is more than $1,782,008 collected as of June 30, 2014. 204
0-1
residential permits have been issued to date compared to 141 issued in the prior fiscal
�
year's third quarter. The largest increase in permits/fees revenue is due to the increased
number of residential permits issued during the third quarter FY 2015. 23 and 31
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commercial permits were issued for the third quarter June 30, 2015 and June 30, 2014,
respectively.
Miscellaneous. This category includes amounts from tower leases, the 10%
administrative fee retained from Municipal Court State taxes remitted quarterly to the
Comptroller, and library fees/fines. The City has received $772,683 to date. Revenues
from miscellaneous income will meet the $815,000 budgeted.
Interest income. Interest earnings to date total $67,388. It is anticipated that interest
income will be within budgeted amounts, staff will continue to monitor revenues and
make the necessary budget amendments during the budget process.
GENERAL FUND EXPENDITURES
For the third quarter ended June 30, 2015 of the fiscal year, General Fund total
expenditures are $24,682,824 or 69.7% of the $35,429,210 budget. A brief discussion of
each department will follow, providing a summary explanation of major expenditures
trends.
General government department. Department expenditures for the City Secretary's
Office, Human Resources, City Manager's Office, Information Technology,
Communications and Support Services total $3,668,119 which is 64.8% of budget.
Personnel, contract services and utility expenditures are on target with budget. Legal fees
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are trending lower than anticipated therefore a budget amendment was recommended
with the amended budget.
2
Finance department. For the Finance, Municipal Court, Teen Court Divisions, total
expenditures to date are $1,445,143 or 70.4% of the $2,053,498 budgeted. Personnel,
operations and capital expenditures are within budget.
Public safety department. Total expenditures for Police Services, Fire Services, and
Public Safety Support, are $10,723,136, which is 72.9% of the $14,702,975 budgeted.
Currently, public safety expenditures are within budget and on target for the fiscal year.
Public works department. Budgeted within this department are Streets/Drainage,
Facility Maintenance and Public Works Administration. Expenditures to date are
$3,103,153 or 65.7% of the $4,721,912 budgeted. Personnel, operations and capital
expenditures are within budget.
Planning and development department. Total expenditures for Planning and Building
Inspections are $1,397,157 or 69.2% of the $2,019,139 budgeted for the year.
Expenditures in the Department are within budget.
Economic development department. The department has expended $145,253, or 62.9%
of the $230,965 budgeted for the year. Expenditures in the Department are within
budget.
Community services department. Total expenditures for Community Services, Parks
and Recreation, and Library Services are $4,200,863 or 69.5% of the $6,040,344
budgeted. Personnel, operations and capital expenditures are on target with budget.
Expenditures in the Department are expected to be within budget projections.
WATER AND SEWER ENTERPRISE FUND
Revenues. As of June 30, 2015, the City has received $15,309,870 or 63.9% in revenues
of the $23,966,900 estimated. This is slightly more than $15,247,215 received through
June of last year. The majority of the increase is due to the Fort Worth pass-thru water
rate increase and 264 new water customers. Total revenues for the year will most likely
be within budget.
Expenses. The City has expended $14,284,624 or 62.1% of the $23,013,325 budgeted for
personnel, operations, capital, and debt services. Of the total expenses, $3,738,678 has
been paid to the City of Fort Worth for treated water.
STORMWATER ENTERPRISE FUND
Revenues. On October 17, 2006, City Council approved Ordinance No. 900 and 901
establishing the Storm Water Drainage Utility System and establishing the fee
respectively. As of June 30, 2015, the City has received $1,035,968 or 76.8% in revenue
of the $1,348,950 estimated.
3
Expenses. The City has expended $412,256 or 66.5% of the $619,616 budgeted for
personnel, operations and capital. $294,592 expended for drainage materials and capital
equipment (mechanical street sweeper).
DEBT SERVICE FUND
Revenues. The City has received $14,184,693 in current and delinquent property taxes
through June 30, 2015. This fund pays the property tax supported debt requirements for
the City. The first semi-annual payments were paid February 2015 totaling $14,254,400.
SOUTHLAKE PARKS DEVELOPMENT CORPORATION (SPDC)
Operating Fund. As of June 30, 2015, $4,624,801 in the '/z cent sales tax has been
collected. SPDC sales tax receipts are 22.08% above estimates, or $836,418. The
increase is due a large payment received with January collections as a result of an audit of
prior collections covering the period from 2010 through 2013. Net the audit adjustment
sales tax collections are 6.2% above budget.
CRIME CONTROL AND PREVENTION DISTRICT (CCPD)
Operating Fund. As of June 30, 2015, $4,567,378 in the %z cent sales tax has been
collected. Sales tax receipts are 20.24% above estimates, or $763,164. The increase is
due a large payment received with January collections as a result of an audit of prior
collections covering the period from 2010 through 2013. Net the audit adjustment sales
tax collections are 4.3% above budget.
PARK DEDICATION FEE FUND
Revenues. The City collected $215,746 park dedication funds as of June 30, 2015. This
revenue source varies depending on the number of developments during a fiscal year, and
the park dedication fee credits given, if any, for open space and amenities.
TAX INCREMENT FINANCIAL DISTRICT (TIF)
Revenues. To date TIF has received $7,325,145 in tax revenues for the fiscal year.
Historically, the TIF revenues are not collected until the third quarter of the fiscal year.
U
STRATEGIC INITIATIVE FUND
Expenditures. As of June 30, 2015, the expenditures were $849,822 for community
enhancement (Town Square enhancements) and capital acquisition (fire engine).
HOTEL OCCUPANCY FUND
Revenues. The City has collected $632,471 or 68.3% in revenue of the $926,565
budgeted for the year. The Hotel Occupancy Tax is authorized under the Texas Tax
Code, Chapter 351. The City of Southlake adopted Ordinance No. 769 in February 2000,
levying a 7% tax on room receipts. The Hilton Hotel in Town Square opened in June
2007.
Expenditures. As of June 30, 2015, the expenditures were $496,737 for personnel,
advertising and marketing and promotion.
F
CITY C>F
SOUY"L_AKE
TEXAS
GENERAL FUND
Comparative Statement of Revenues, Expenditures and Changes in Fund Balance
for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
REVENUES
Ad Valorem Taxes
Sales Tax
Franchise Fees
Fines
Charges for Services
Permits/Fees
Miscellaneous
Interest Income
Total Revenues
EXPENDITURES
City Secretary
Human Resources
City Manager
Information Technology
Communications
Support Services
General Government Total
Finance
Municipal Court
Municipal Court -Teen Court
Finance Total
Fire
Police
Public Safety Support
Public Safety Total
Streets/Drainage
Facility Maintenance
Public Works Administration
Public Works Total
Building Inspections
Planning
Planning and Dev Total
Economic Development
Economic Development Total
Community Services
Parks and Recreation
Library Services
Community Services Total
Total Expenditures
Excess (deficiency) of
Revenue over Expenditures
OTHER FINANCING
SOURCES AND (USES)
Proceeds from lease/CO (net)
Transfer In -Other Funds
Transfer To -Other Funds
Total Other Sources/(Uses)
Excess (deficiency) of
Revenues/other sources over Exp
FUND BALANCE OCT 1
Change in reserved fund balance
ENDING FUND BALANCE
fund balance percentage
Year to Date
6/30/15
$18, 848,841
8,992,026
2,253,246
918,842
978,012
1,987,649
772,683
67,388
$34,818,687
$312,573
402,266
575,959
1,483, 531
113,613
780,177
3,668,119
930,828
423,049
91,266
1,445,143
5,544,865
4,260,861
917,410
10,723,136
1,170,205
1,054,479
878,469
3,103,153
742,248
654,909
1,397,157
145,253
145,253
837,886
2,899,495
463,482
4,200,863
$24,682,824
$10,135,863
$0
1,585,529
(4,990,000)
($3,404,471)
6 731 392
2015
Budget
$19,561,715
12,022,000
2,736,404
1,115,000
1,252,150
1,482,300
815,000
70,000
$39,054,569
$491,369
616,307
825,144
2,142,154
162,743
1,422,660
5,660,377
1,231,600
673,877
148,021
2,053,498
7,629,218
5,860,540
1,213,217
14,702,975
1,682,704
1,751,706
1,287,502
4,721,912
1,052,964
966,175
2,019,139
230,965
230,965
1,157,814
4,269,231
613,299
6,040,344
$35,429,210
$3,625,359
$0
1,585,529
(4,990,0001
($3,404,471)
220 888
$8,895,959
$0
9116 847
25.73%
Year to Date
6/30/14
$18,827,376
7,255,742
1,905,041
999,063
903,100
1,782,008
730,334
33,964
$32,436,628
$255,070
392,703
590,036
1,396,433
0
903,153
3,537,395
870,572
407,488
90,495
1,368,555
5,388,439
4,318,046
916,225
10,622,710
1,241,206
924,913
709,055
2,875,174
653,520
613,580
1,267,100
140,896
140,896
568,560
3,004,237
490,043
4,062,840
$23,874,670
$8,561,958
$0
1,481,115
(3,220,000)
($1,738,885)
$6,823,073
% Increase/
-Decrease
Prior Year
0.1 %
23.9%
18.3%
-8.0%
8.3%
11.5%
5.8%
98.4%
7.3%
22.5%
2.4%
-2.4%
6.2%
1136129900.0%
-13.6%
3.7%
6.9%
3.8%
0.9%
5.6%
2.9%
-1.3%
0.1%
0.9%
-5.7%
14.0%
23.9%
7.9%
13.6%
6.7%
10.3%
3.1 %
3.1 %
47.4%
-3.5%
-5.4%
3.4%
3.4%
CITY CW
SOUTH LAI1E
TEXAS
WATER AND SEWER ENTERPRISE
FUND
Comparative Statement of Revenues and
Expenses
for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
Percent
% Increase/
Year to Date
2015
Collected/
Year to Date
-Decrease
REVENUES
6/30/15
Budget
Expended
6/30/14
Prior Year
Water Sales -residential
$7,499,552
$13,100,000
57.2%
$7,743,729
-3•2%
Water Sales -commercial
2,404,765
3,500,000
68.7%
2,204,253
9.1%
Sewer Sales
3,637,914
5,050,000
72.0%
3,651,929
-0.4%
Sanitation Sales
1,210,074
1,715,000
70.6%
1,189,500
1.7%
Other utility charges
414,797
416,900
99.5%
302,732
37.0%
Miscellaneous
136,759
160,000
85.5%
145,925
-6•3%
Interest Income
6,009
25,000
24.0%
9,147
-34.3%
Total Revenues
$15,309,870
$23,966,900
63.9%
$16,247,215
0.4%
EXPENSES
Water
$5,553,118
$11,624,912
47.8%
$5,772,803
-3.8%
Utility Billing
307,169
503,768
61.0%
290,999
5•6%
Sewer
1,689,088
2,731,590
61.8%
1,860,892
-9.2%
Sanitation
797,396
1,320,000
60.4%
836,725
-4.7%
Debt Service
5,937,853
6,833,055
86.9%
5,836,777
1.7%
Total Expenses
$14,284,624
$23,013,325
62.1%
$14,598,196
-2.1%
Excess (deficiency) of
Revenue over Expenses
$1,025,246
$953,575
$649,019
OTHER FINANCING
SOURCES AND (USES)
Transfer In -Other Funds
$0
$0
Developer Contributions
$0
$50,000
$0
Transfer Out -Other Funds
96( 0,676)
96j 0,676)
(935,555)
Total Other Sources/(Uses)
($960,676)
($910,676)
($935,555)
Excess (deficiency) of
Revenues and other sources
over Expenses
$64,570
$42,899
286 536
13CITY OF
SQU-rHL_,4kK1E
TEXAS
STRATEGIC INITIATIVE FUND
Comparative Statement of Revenues and Expenditures
�ID for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
REVENUES
Interest Income
Total Revenues
EXPENDITURES
Infrastructure Maintenance
Community Enhancement
k
Technology Infrastructure
Capital Acquisition
o1
Total Expenditures
f,
Excess (deficiency) of
Revenue over Expenses
ok
ok
OTHER FINANCING
SOURCES AND (USES)
f b
Transfer In -Other Funds
Transfer Out -Other Funds
Total Other Sources/(Uses)
Excess (deficiency) of
Revenues and other sources
over Expenses
FUND BALANCE OCT 1
ENDING FUND BALANCE
Year to Date 2015
6/30/15 Budget
1 498
$8,000
18.
$1,498
$8,000
18.
$0
$0
0.
159,520
518,000
30.
588
0
5880000.
689,714
700,000
98.
$849,822
$1,218,000
69.
848 324 ($1,210.000)
$4,400,000
(7,420,000)
($3,020,000)
($3,868,324)
$4,400,000
(7,420, 000)
($3,020,000)
($4,230,000)
$7,816,274
3 586 274
Year to Date
6/30/14
7 799
$7,799
$0
129,574
47,440
344.975
$521,989
514 190
$2,200,000
(4,100,000)
($1,900,000)
($2,414,190)
% Increase/
-Decrease
Prior Year
-80.8%
-80.8%
-100.0%
23.1 %
-98.8%
99.9%
62.8%
CITY OF
SOU_1r" LAI<_E
TEXAS
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
Comparative Statement of Revenues and Expenditures
for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
REVENUES
Sales Tax
Rental Income
Interest Income
Total Revenues
EXPENDITURES
Personnel
Operations
Capital
Total Expenditures
Excess (deficiency) of
Revenue over Expenses
OTHER FINANCING
SOURCES AND (USES)
ok Transfer In -Other Funds
Transfer Out -Other Funds
Total Other Sources/(Uses)
Excess (deficiency) of
Revenues and other sources
4' over Expenses
FUND BALANCE OCT 1
ENDING FUND BALANCE
Percent
% Increase/
Year to Date
2015
Collected/
Year to Date
-Decrease
6/30/15
Budget
Expended
6/30/14
Prior Year
$4,624,801
$6,592,000
70.2%
$3,776,795
22.5%
102,549
153,816
66.7%
115,368
-11.1 %
8,471
7,500
112.9%
6,995
21.1 %
$4,735,821
$6,753,316
70.1 %
$3,899,158
21.5%
$76,400
$106,658
71.6%
$73,357
4.1%
67,151
682,600
9.8%
136,126
-50.7%
74,769
190,000
39.4%
87,289
-14.3%
$218,320
$979,258
22.3%
$296,772
-26.4%
4 517 501
$5,774,058
$3,602,386
$0
$0
$0
(4,154,422)
(4,154,422)
(5,918,311)
($4,154,422)
($4,154,422)
($5, 918, 311)
363 079
$1,619,636
($2,315,925)
$7,351, 962
8 971 598
GITY OF
SOUTHL.AItE
TEXAS
r-
REVENUES
Sales Tax
Interest Income
Total Revenues
EXPENDITURES
Personnel
#u Operations
Capital
Total Expenditures
Excess (deficiency) of
Revenue over Expenses
OTHER FINANCING
SOURCES AND (USES)
Transfer In -Other Funds
Transfer Out -Other Funds
Total Other Sources/(Uses)
Excess (deficiency) of
Revenues and other sources
over Expenses
FUND BALANCE OCT 1
ENDING FUND BALANCE
O'
OW
fh
fb
P
CRIME CONTROL AND PREVENTION DISTRICT
Comparative Statement of Revenues and Expenditures
for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
Year to Date
6/30/15
$4, 567, 378
616
$4,567,994
$437,028
45,353
33,551
$515,932
$4,052,062
$0
(4,281,600)
($4,281,600)
229 538
2015
Budget
$6,592,000
500
$6,592,500
$594,986
111,054
18,000
$724,040
5 868 460
$0
(4,281,600)
($4,281,600)
1 586 860
$4,724,335
$6, 311,195
% Increase/
Year to Date -Decrease
6/30/14 Prior Year
$3,727,183
22.5%
790
-22.0%
$3,727,973
22.5%
$321,804
35.8%
135,983
-66.6%
0
335509900.0%
$457,787
12.7%
$3,270,186
$0
(5,245,275)
($5,245,275)
($1,975.089)
1wCITY OF
SC:)U7r"1_./kKE
TEXAS
HOTEL OCCUPANCY TAX
Comparative Statement of Revenues and Expenditures
for the period ended June 30, 2015 and June 30, 2014
(fiscal month 9-75.00%)
Year to Date
REVENUES
6/30/15
Taxes
$630,670
Interest Income
1,801
Total Revenues
$632,471
EXPENDITURES
Personnel
$136,547
Operations
$360,190
Capital
0
Total Expenditures
$496,737
Excess (deficiency) of
Revenue over Expenses
$135,734
OTHER FINANCING
SOURCES AND (USES)
P
Transfer In -Other Funds
$0
o`
Transfer Out -Other Funds
(376,048)
Total Other Sources/(Uses)
($376,048)
f'
Excess (deficiency) of
Revenues and other sources
over Expenses
240 314
FUND BALANCE OCT 1
ENDING FUND BALANCE
Perce
2015
Collecte
Bud et
Expend
$926, 065
68.1
500
360.2
$926,566
68."
$196, 508
557,954
0
$764,462
172 103
$0
37( 6,048)
($376,048)
203 945
$1,267,113
$1, 063,168
69.5%
64.6%
0.0%
65.8%'
Year to Date
6/30/14
$626,729
605
$627,334
$79,196
$257, 065
0
$336,261
291 073
$0
(167,423)
($167,423)
123 650
% Increase/
-Decrease
Prior Year
0.6%
197.7%
0.8%
72.4%
40.1 %
0.0%
47.7%
CITY OF SOUTHLAKE
1% SALES TAX REPORT
2015 Collected Budget Balance
Budget to Date Balance Percent
$ 11,742,000 $11,837,916 $95,916 0.82%
MONTH
FISCAL
YEAR
2O13
% Inc
-Dec
FISCAL
YEAR
2014
% Inc
-Dec
FISCAL
YEAR
2015
% In
-Del
October
848,376
23.6%
983,585
15.9%
1,130,622
14.
November
837,828
4.4%
995,373
18.8%
1,161,450
16.
December
1,293,838
10.2%
1,519,672
17.5%
1,616,389
6.
January
837,172
10.1 %
931,846
11.3%
11022,281
9.
February %^
816,932
31.8%
872,062
6.7%
2,133,885
144.
March
976,128
14.0%
1,229,474
26.0%
1,204, 909
-2.
April
925,224
23.4%
1,136,025
22.8%
1,120,211
-1.
May
992,062
26.0%
1,069,795
7.8%
1,095,856
2•
June
1,127,745
23.0%
1,269,400
12.6%
1,352,314
6.
July
934,070
24.4%
1,136,338
21.7%
-100.
August
917,449
39.6%
1,039,189
13.3%
-100.
September
1 991,136
14.8%
1 160 059
17.0%
-100.
$11 497 962
$13 342 819
11 837 916
TOTAL
_
2,500,000
2,000,000
1,500,000
i
1,000,000
I
500,000
0
Three Year Revenue Comparison
by Month
)5%
58%
36%
70%
39%
)0%
39%
14%
53%
)0%
)0%
00%
4?� ko�r PQc\ �a� ,J�e �J�� ,ce Fie`
■ FISCAL YEAR 2013 ❑ FISCAL YEAR 2014 FISCAL YEAR 2015
(A)- 2015 monthly collection includes an audit payment adjustment
Actual Budget Actual Estimated (budget-est.) 0/0
2014 2015 2015 2015 Difference Chg
October(*) $983,585 $865,579 $1,130,622 $ 1,130,622 $ 265,043 3
November(*) $995,373 $875,952 $1,161,450 $ 1,161,450 $ 285,498 3
December(*) $1,519,672 $1,337,348 $1,616,389 $ 1,616,389 $ 279,041 2
January(*) $931,846 $820,047 $1,022,281 $ 1,022,281 $ 202,234 2
February(*) $872,062 $767,435 $2,133,885 $ 2,133,885 $ 1,366,450 17
March(*) $1,229,474 $1,081,967 $1,204,909 $ 1,204,909 $ 122,942 1
April (*) $1,136,025 $999,729 $1,120,211 $ 1,120,211 $ 120,482 1
May(*) $1,069,795 $941,445 $1,095,856 $ 1,095,856 $ 154,411 1
June (*) $1,269,400 $1,117,102 $1,352,314 $ 1,352,314 $ 235,212 2
July(*) $1,136,338 $1,000,005 $0 $ 1,000,005 $ -
August(*) $1,039,189 $914,511 $0 $ 914,511 $ -
September(*) $1,160,059 $1,020,880 L0 $ 1,020,880 $ -
TOTAL $ 13,342,819 $ 11,742,000 $ 11,837,916 $ 14,773,312 $ 3,031,312
* Beginning April 2006 includes Grand Avenue sales tax collections per 380 agreement
80% of collections will be distributed to Cooper & Stebbins
^ Monthly collection includes an audit payment adjustment for previous periods (2010-2013)
0.62%
2.59%
0.87%
4.66%
8.05%
1.36%
2.05°/a
6.40°/k
I .06%
0.00°/
0.00°/
0.00%
* Beginning April 2006 includes Grand Avenue sales tax collections per 380 agreement
80% of collections will be distributed to Cooper & Stebbins
^ Monthly collection includes an audit payment adjustment for previous periods (2010-2013)
0.62%
2.59%
0.87%
4.66%
8.05%
1.36%
2.05°/a
6.40°/k
I .06%
0.00°/
0.00°/
0.00%
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
1/2% SALES TAX REPORT
2015 Collected Budget Balance
Budget to Date Balance Percent
$ 6,592,000 $5,830,616 761384-11.55%
MONTH
FISCAL
YEAR
2O13
% Inc
-Dec
FISCAL
YEAR
2014
% Inc
-Dec
FISCAL
YEAR
2015
% Inc
-Dec
October
$417,857
23.6%
$484,453
15.9%
$556,874
14.95%
November
$412,661
4.4%
$490,258
18.8%
$572,058
16.68%
December
$637,264
10.2%
$748,495
17.5%
$796,132
6.36%
January
$412,338
10.1%
$458,969
11.3%
$503,511
9.70%
February
$402,370
31.8%
$429,523
6.7%
$1,051,018
144.69%
March
$480,779
14.0%
$605,562
26.0%
$593,462
-2.00%
April
$455,708
23.4%
$559,535
22.8%
$551,745
-1.39%
May
$488,628
26.0%
$526,914
7.8%
$539,750
2.440/b
June
$555,457
23.0%
$625,227
12.6%
$666,065
6.53%
July
$460,065
24.4%
$559,689
21.7%
$0
-100.000/0
August
$451,878
39.6%
$511,839
13.3%
$0
-100.000/0
September
$488,172
14.8%
$571,373
17.0%
L0
-100.000/0
TOTAL
$ 5,663,175
$6,571,836
$5,830,616
Three Year Revenue Comparison
by Month
$1,200,000
$1,000,000
I
$800,000
$600,000
$400,000
$200,000
$0
CP �oAz Om�e� Sao°��, ap �•� PQ
j -._
®FISCAL YEAR 2013 ❑FISCAL YEAR 2014
,Jge �JA
J e
P 9�Q�
FISCAL YEAR 2015
Actual
Budget
Actual
Estimated
(budget-est.)
%
2014
2015
2015
2015
Difference
Change
MONTH
October
$484,453
$ 485,939
$556,874
$ 556,874
$ 70,935
14.60w,
November
$490,258
$ 491,762
$572,058
$ 572,058
$ 80,296
16.33'y
December
$748,495
$ 750,792
$796,132
$ 796,132
$ 45,340
6.0431
January
$458,969
$ 460,377
$503,511
$ 503,511
$ 43,134
9.3731
February
$429,523
$ 430,841
$1,051,018
$ 1,051,018
$ 620,177
143.95 i
March
$605,562
$ 607,420
$593,462
$ 593,462
$ (13,958)
-2.3013�
April
$559,535
$ 561,252
$551,745
$ 551,745
$ (9,507)
-1.69 3
May
$526,914
$ 528,531
$539,750
$ 539,750
$ 11,219
2.12'--,p
June
$625,227
$ 627,145
$666,065
$ 666,065
$ 38,920
6.21 a
July
$559,689
$ 561,406
$0
$ 561,406
$ -
0.00'?
August
$511, 839
$ 513,410
$0
$ 513,410
$
0.00
September
$571,373
$ 573,125
$00
$ 573,125
$ -
0.00
$ 6,592,000
$ 7,478,557
$ 886,557
TOTAL
$ 6,571,836
$ 5,830,616
mommy couection mcivaes an audit payment adjustment for previous periods (2010-2013)
SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT
1/2% SALES TAX REPORT
2015 Collected Budget Balance
Budget to Date Balance Percent
$ 6,592,000 $5,763,019 (828,981)-12.58%
MONTH
Fiscal Year
2013
Actual
Percent
Increase/
(Decrease)
Fiscal Year
2014
Actual
Percent
Increase/
(Decrease)
Fiscal Year
2015
Actual
Percent
Increase/
(Decrease)
October $413,388
23.72%
$478,241
15.69%
$550,793
15.17%
November 410,740
9.17%
487,762
18.75%
571,043
17.07%
December 624,361
16.39%
726,669
16.39%
780,822
7.45%
January 415,721
14.62%
472,458
13.65%
499,824
5.79%
February i "i 399,585
33.49%
429,517
7.49%
1,046,324
143,60%
March 459,901
20.15%
576,306
25.31%
565,868
-1.81%
April 454,612
25.22%
556,230
22.35%
552,705
-0.63%
May 489,002
25.96%
525,327
7.43%
542,853
3.34%
June 537,558
27.55%
662,081
23.16%
652,787
-1.40%
July 451,139
24.51%
554,922
23.00%
-100.00%
August 445,542
39.74%
502,019
12.68%
-100.00%
September 469,916
18.73%
545,071
15.99%
-100.00%
TOTALI $5,571,465
$6,516,603
$5,763,019
Three Year Revenue Comparison
by Month
$1,200,000
$1,000,000
$800,000
$600, 000
$400, 000
$200, 000
$0
OG�°��c,���°c Ge��ec ��Ja� Ja�`� dp PQ�� ��� c� ,J�� P �JS� �e met
�° O° Geo� geQ
Fiscal Year 2013 Actual ® Fiscal Year 2014 Actual Fiscal Year 2015 Actual
MONTH
Actual
2O14
Budget
2015
Actual
2015
Estimated
2015
(budget-est.)
Difference
%
Change
October
$
478,241
$
483,774
$
550,793
$
550,793
$
67,019
13.85%
November
$
487,762
$
493,405
$
571,043
$
571,043
$
77,638
15.74%
December
$
726,669
$
735,077
$
780,822
$
780,822
$
45,745
6.22%
January
$
472,458
$
477,924
$
499,824
$
499,824
$
21,900
4.58%
February
$
429,517
$
434,487
$
1,046,324
$
1,046,324
$
611,837
140.82%
March
$
576,306
$
582,974
$
565,868
$
565,868
$
(17,106)
-2.93%
April
$
556,230
$
562,666
$
552,705
$
552,705
$
(9,961)
-1.77%
May
$
525,327
$
531,405
$
542,853
$
542,853
$
11,448
2.15%
June
$
662,081
$
669,741
$
652,787
$
652,787
$
(16,954)
-2.53%
July
$
554,922
$
561,342
$
-
$
561,342
$
-
0.00%
August
$
502,019
$
507,827
$
-
$
507,827
$
-
0.00%
September
$
545,071
$
551,378
$
-
$
551,378
$
-
0.00%
$
6,516,603
$ 6,592,000
$
5,763,019
$
791,566
TOTAL
$ 7,383,566
^ Monthly collection includes an audit payment adjustment for previous periods (2010-2013)
FirstSouthwest
A PlainsCapital Company.,,
City of Southlake
CITY OF
SOUTHLAKE
19
For the Quarter Ended
June 30, 2015
Prepared by
FirstSouthwest Asset Management
Investment Portfolio Summary
FirstSouthwest
A PlainsCapital Company
Report Name
Certification Page
Executive Summary
Benchmark Comparison
Detail of Security Holdings
Change in Value
Earned Income
Investment Transactions
Amortization and Accretion
Projected Fixed Income Cash Flows
MARKET RECAP - JUNE 2015:
The rebound that economists have been looking for seems to have finally taken hold as the
major economic data released during the month of June showed strength. The ISM
manufacturing index got the month off to a fast start, rising to 52.8 in May from 51.5 previously.
The ISM non -manufacturing index dipped slightly, but at 55.7 remains quite strong. Auto sales
raced ahead in May to an annualized 17.7 million unit pace, the fastest since July 2005.
Non -farm payrolls grew by a much larger than expected +280k during May while net revisions to
the two previous months added another +32k to the tally. That easily topped the +226k median
estimate in Bloomberg's survey and brought the three-month average to a solid +267k. The
unemployment rate ticked up from 5.4% to 5.5%, but the slight gain was due to an increase in
the labor force participation rate and is viewed positively as improving prospects are bringing
discouraged workers back into the job market. Improving labor conditions pushed wages higher
with average hourly earnings rising by $0.08 to $24.96. Over the past year, hourly earnings are
now up +2.3%. Just five months ago, the rate of increase was +1.9%. Rounding out the upbeat
news on employment was the Job Openings and Labor Turnover (JOLT) survey, which crushed
expectations with 5.376 million job openings in April, an all-time high for the series. Consumers
pried opened their wallets in May, sending retail sales to a +1.2% gain, while upward revisions
to both March and April added to the report's luster. Inflation is firming as the consumer price
index rose +0.4% in May, the largest monthly increase since Feb-2013. That took the headline
year -over -year rate up from -0.2% to a flat 0.0%. Striping out food and energy brought core -CPI
up +0.1% and +1.7% year -over -year. With oil prices stabilizing, the sharp decline in CPI is
fading into the past and we should expect some modest upward pressure as the year
progresses. Housing data also showed strength with May existing home sales gaining +5.1%
and new homes +2.2%.
We would typically expect such strong data to send bond yields higher and spark discussion of
Fed rate hikes. And for a while, we got exactly that. The two-year Treasury note yield climbed
as high as 0.73% mid -month and the 10-year topped out at 2.49% as expectations for Fed rate
hikes heated up. But as the month of June drew to a close the never ending Greek saga began
boiling over once again, sending equity markets around the globe lower and sparking a flight to
safety rally in bonds that took the two-year T-note down to 0.64% and the 10-year to 2.35% to
close the month. The Greek situation remains a wild card that has financial markets feeling
uneasy.
Page 2 of 14
J�*
FirstSouthwest
A PlainsCapital Company
For the Quarter Ended
June 30, 2015
City of Southlake
Investment Officers' Certification
This report is prepared for the City of Southlake (the "Entity") in accordance with Chapter 2256 of the Texas Public Funds Investment Act ("PFIA"). Section
2256.023(a) of the PFIA states that: "Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report
of the investment transactions for all funds covered by this chapter for the preceding reporting period." This report is signed by the Entity's investment officers
and includes the disclosures required in the PFIA. To the extent possible, market prices have been obtained from independent pricing sources.
The investment portfolio complied with the PFIA and the Entity's approved Investment Policy and Strategy throughout the period. All investment transactions
made in the portfolio during this period were made on behalf of the Entity and were made in full compliance with the PFIA and the approved Investment Policy.
Officer Names and Titles:
Page 3 of 14
J�w
FirstSouthwest
A PlainsCapital Company
Beginning Values as of 03/31115
Par Value
Market Value
Book Value
Unrealized Gain / Loss
Market Value %
Weighted Avg. YTW
Weighted Avg. YTM
107,435,269.88
107,490,154.08
107,505,474.94
(15,320.86)
99.99%
0.438%
0.438%
Ending Values as of 06/30/15
113,544,941.12
113,621,362.82
113,602,041.64
19,321.18
100.02%
0.433%
0.433%
City of Southlake
Executive Summary
As of 06/30/15
■ AGCY BULLET
13%
■ AGCY CALL
25%
■ CD
7%
■ CP
4%
■ LGIP
46%
MUNICIPAL
5%
TOW..
100%
Allocation
by Issuer
Maturity
Distribution
%
Credit
Quality
r.
Print Date: 7/17/2015 Print Time: 10:04 am
40%
■ TEXSTAR 23%
TEY,POOL 15 %
30%
■ FNMA 11%
■ FHLB 11%
■ FFCB 11%
20%
COMERICA 7%
■ Other Issuers 22%
Total: 100%
10%
0%
Overnight 2 - 90 Days 91 - 180 8 - 12 1 - 2 Years 2 - 3 Years
Days Months
Weighted Average Days to Maturity: 303
w A-1+ _ 4 i
AAA 89%
■ Collateralized 79/
Total: 100%
Page 1 of 1
Page 4 of 14
i
1
City of Southlake
Benchmark Comparison
FirstSouthweSt As of 06/30/2015
A PlainsCapital Company-
U.45%
0.40%------------------------
0.35% --------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------
0.30%------------
0.25% -------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
0.20% --------------------------------------------------
0.15%--------------------------------------------------------- ------------------------------------
0.10%---------- ----------------------------------- --------- ----------------------------- -------------- --------- - ----------- -----.----------
0.05% 5 .
-------------- --------- -------------------
0.00%
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15
f 3-MO CMT 6-MO CMT f 1-YR CMT -F TEXPOOL -f City of Southlake
Note 1: CMT stands for constant Maturity Treasury. This data is published in Federal Reserve Statistical Release H.15 and represents an average of all actively traded Treasury securities having that time remaining until maturity. This is a
standard industry benchmark for Treasury securities. The CMT benchmarks are moving averages. The 3-month CMT is the daily average for the previous 3 months, the 6-month CMT is the daily average for the previous 6 months, and the
1-year and 2-year CMT's are the daily averages for the previous 12-months.
Note 2: Benchmark data for TexPool is the monthly average yield.
Print Date: 7/17/2015 Print Time: 10:05 am Page 1 of 1
Page 5 of 14
J�*
FirstSouthwest
A PlainsCapital Company
City of Southlake
Detail of Security Holdings
As of 0613012015
Settle Purch Mkt Days Days
CUSIP Date Sec. Type Sec. Description CPN Mty Date Next Call Call Type Par Value Price Ong Cost Book Value Price Market Value to Mty to Call YTM YTW
General Operating
LNSTCRP
LGIP
LoneStar Corp O/N
LNSTGOV
LGIP
LoneStar Govt DIN
TEXPOOL
LGIP
TexPool
TEXSTAR
LGIP
TexSTAR
CD-0403-5
02/24/14 CD
Comerica Bk CD
36959JZJ5
03/23/15 CP - DISC
GE Capital Corp
CD-7910-2
09/15/14 CD
Comerica Bk CD
313OA4EJ7
03/23/15 AGCY BULET
FHLB
8827226Y2
12/19/12 MUNICIPAL
TX Trans Comm Hwy Impt
GO
3133EESZ4
03/23/15 AGCY BILLET
FFCB
3135GOGY3
01/28/14 AGCY BILLET
FNMA
3133EDXT4
10/24/14 AGCY BULET
FFCB
3134G6NV1
04/28/15 AGCY CALL
FHLMC
3133ECMZ4
10/24/14 AGCY CALL
FFCB
3133EDVU3
11/17/14 AGCY BILLET
FFCB
3135GOPL1
02/21/13 AGCY CALL
FNMA
3133813R4
01/17/13 AGCY CALL
FHLB
3135GOUX9
03/12/13 AGCY CALL
FNMA
Total for General Operating
Parks Development Corporation
TEXPOOL LGIP TexPool
TEXSTAR LGIP TexSTAR
Total for Parks Development Corporation
4,003,347.21
100.000
4,003,347.21
4,003,347.21
100.000
4,003,347.21
1
0.140
0.140
6,002,244.08
100.000
6,002,244.08
6,002,244.08
100.000
6,002,244.08
1
0.070
0.070
15,718,359.71
100.000
15,718,359.71
15,718,359.71
100.000
15,718,359.71
1
0.058
0,058
24,333,339.29
100,000
24,333,339.29
24,333,339.29
100.000
24,333,339.29
1
0.072
0.072
0.280
08124/15
5,104,265.06
100.000
5,104,265.06
5,104,265.06
100.000
5,104,265.06
55
0.280
0.280
12/18/15
4,000,000.00
99.730
3,989,200.00
3,993,200.00
99.824
3,992,972.00
171
0.361
0.361
0.370
03/15/16
3,056,292.45
100.000
3,056,292.45
3,056,292.45
100.000
3,056,292.45
259
0.370
0.370
0.310
03/22/16
3,000,000.00
99.980
2,999,400.00
2,999,563.65
100.040
3,001,200.00
266
0,330
0.330
1.500
04/01/16
5,650,000.00
103.023
5,820,799.50
5,689,284.00
100.594
5,683,549.70
276
0.569
0.569
0.460
07/12/16
3,000,000.00
100.043
3,001,284.00
3,001,015.44
100,180
3,005,400.00
378
0.427
0.427
1.250
01/30/17
3,000,000.00
101.270
3,038,100.00
3,020,151.42
101.040
3,031,200.00
580
0.821
0.821
0.840
04/17/17
3,000,000.00
100.279
3,008,364.00
3,006,065.46
100.170
3,005.100.00
657
0.726
0.726
0.875
04/28/17
07/28/15 QRTLY
5,000,000.00
100.000
5,000,000.00
5,000,000.00
100,060
5,003,000.00
668
28
0.875
0.875
0.690
05/01/17
Anytime CONT
3,000,000.00
99.650
2,989,500.00
2,992,339.26
99.950
2,998,500.00
671
5
0.831
0.831
1.125
09/22/17
3,000,000.00
100,322
3,009,660.00
3,007,578.54
100.400
3,012,000.00
815
1.010
1.010
1.050
10/04/17
07/04/15 MTHLY
5,000,000.00
99.915
4,995,750.00
4,997,902.75
100.000
5,000,000.00
827
4
1.069
1.069
1.000
11/09/17
07/09/15 MTHLY
10,000,000.00
100.000
10,000,000.00
10,000,000.00
99.920
9,992,000.00
863
9
1.000
0.998
1.200
02128/18
08/28/15 QRTLY
5,000,000.00
100.000
5,000,000.00
5,000,000.00
100.030
5,001,500.00
974
59
1,200
1.199
110.867,847.80
100.184
111,069.905 30
110.924,948 32
100,069
110,944,269.50
311
0."2
0."2
1,038,939.22 100.000 1,036,939.22 1,038,939.22 100.000 1,038,939.22 1 0.058 0.058
1,638,154.10 100.000 1,638,154.10 1,638,154.10 100.000 1,638,154.10 1 0.072 0.072
2,677,093.32 100.000 2,677,093.32 2,677,093.32 100.000 2.677,093.32 1 0.066 0.066
T otal for City of Southlake 113.544 941.12 100.179 113 746 998.62 113 602 041.64 100.068 113,621,362.82 303 0.433 0.433
Print Date: 7/17/2015 Print Time: 10:06 am
Page 1 of 1
Page 6 of 14
•••••••••••••••••••• ► 111410•10iI► 0*060rM0906004010018
-T*
FirstSouthwest
A PlainsCapital Company
CUSIP Security Type Security Description 03131115 Cost of Maturities 1 Amortization I Realized 06/30115
Book Value Purchases Calls / Sales Accretion Gaint(Loss) Book Value
LNSTCRP
LGIP
LoneStar Corp O/N
LNSTGOV
LGIP
LoneStar Govt O/N
TEXPOOL
LGIP
TexPool
TEXSTAR
LGIP
TexSTAR
CD-0403-5
CD
Comerica Bk CD 0.280 08/24/15
36959JZJ5
CP - DISC
GE Capital Corp 0.000 12/18/15
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
313OA4EJ7
AGCY BULET
FHLB 0.310 03/22/16
8827226Y2
MUNICIPAL
TX Trans Comm Hwy Impt GO 1.500 04/01
3133EESZ4
AGCY BULET
FFCB 0.460 07/12/16
3135GOGY3
AGCY BULET
FNMA 1.250 01/30/17
3133EDXT4
AGCY BULET
FFCB 0.840 04/17/17
3134G5XB6
AGCY CALL
FHLMC 1.000 04/28/17
3134G6NV1
AGCY CALL
FHLMC 0.875 04/28/17
3133ECMZ4
AGCY CALL
FFCB 0.690 05/01/17
3133EDVU3
AGCY BULET
FFCB 1.125 09/22/17
3135GOPL1
AGCY CALL
FNMA 1.050 10/04/17
3133813R4
AGCY CALL
FHLB 1.000 11/09/17
3135GOUX9
AGCY CALL
FNMA 1.200 02/28/18
City of Southlake
Change in Value
From 03/31/2015 to 0613012015
03131115 06/30/15 Change in
Market Value Market Value Mkt Value
4,001,978.26
1,368.95
0.00
0.00
0.00
4,003,347.21
4,001,978.26
4,003,347.21
1,368.95
6,001,232.48
1,011.60
0.00
0.00
0.00
6,002,244.08
6,001,232.48
6,002,244.08
1,011.60
15,030,275.68
688,084.03
0.00
0.00
0.00
15,718,359.71
15,030,275.68
15,718,359.71
688,084.03
20,921,005.07
3,412,334.22
0.00
0.00
0.00
24,333,339.29
20,921,005.07
24,333,339.29
3,412,334.22
5,100,664.40
3,600.66
0.00
0.00
0.00
5,104,265.06
5,100,664.40
5,104,265.06
3,600.66
3,989,560.00
0.00
0.00
3,640.00
0.00
3,993,200.00
3,987,772.00
3,992.972.00
5,200.00
3,053,443.91
2,848.54
0.00
0.00
0.00
3,056,292.45
3,053,443.91
3,056,292.45
2,848.54
2,999,413.35
0.00
0.00
150.30
0.00
2,999,563.65
3,000,000.00
3,001,200.00
1,200.00
5,702,353.86
0.00
0.00
(13,069.86)
0.00
5,689,284.00
5,690,612.20
5,683,549.70
(7,062.50)
3,001,262.07
0.00
0.00
(246.63)
0.00
3,001,015.44
3,002,400.00
3,005,400.00
3,000.00
3,023.314.08
0.00
0.00
(3,162.66)
0.00
3,020,151.42
3,034,500.00
3,031,200.00
(3,300.00)
3,006,904.77
0.00
0.00
(839.31)
0.00
3,006,065.46
3,007,800.00
3,005,100.00
(2,700.00)
3,000,000.00
0.00
(3,000,000.00)
0.00
0.00
0.00
3,001,800.00
0.00
(3,001,800.00)
0.00
5,000,000.00
0.00
0.00
0.00
5.000,000.00
0.00
5,003,000.00
5,003,000.00
2,991,303.12
0.00
0.00
1.036.14
0.00
2,992,339.26
2,990,700.00
2,998,500.00
7,800.00
3,008,420.46
0.00
0.00
(841.92)
0.00
3,007,578.54
3,019,800.00
3,012,000.00
(7,800.00)
4,997,673.35
0.00
0.00
229.40
0.00
4,997,902.75
4,988,000.00
5,000,000.00
12,000.00
10,000,000.00
0.00
0.00
0.00
0.00
10,000,000.00
9,974,000.00
9,992,000.00
18,000.00
5,000,000.00
0.00
0.00
0.00
0.00
5,000,000.00
5,007,500.00
5,001,500.00
(6,000.00)
Total for General Operating 104,828,804.86 9,109,248.00 (3,000,000.00) (13,104.54) 0.00 110,924,948.32 104,813,484.00 110,944,269.50 6.130,785.50
Parks Development Corporation
TEXPOOL
LGIP TexPool
1,038,796.66
142.56
0.00
0.00
0.00
1,038,939.22
1,038,796.66
1.038,939.22
142.56
TEXSTAR
LGIP TexSTAR
1,637,873.42
280.68
0.00
0.00
0.00
1,638,154.10
1,637,873.42
1,638,154.10
280.68
Total for Parks
Development Corporation
2,676,670.08
423.24
0.00
0.00
0.00
2.677,093.32
2,676,670.08
2,677,093.32
423.24
Total for City of Southlake 107,505,474.94 9,109,671.24 (3,000,000.00) (13,104.54) 0.00 113,602,041.64 107,490,154.08 113,621,362.82 6,131,208.74
Print Date: 7/1712015 Print Time: 10:06 am
Page 1 of 1
Page 7 of 14
s�w
FirstSouthwest
A PlainsCapital Company.
City of Southlake
Earned Income
From 03/31/2015 to 06/30/2015
CUSIP Security Type Security Description Beg. Accrued Interest Earned Interest Rec'd / Interest Purchased Ending Accrued Disc Accr / Net Income
Sold 1 Matured Prem Amort
LNSTCRP
LGIP
LoneStar Corp O/N
0.00
1,368.95
1,368.95
0.00
0.00
0.00
1,368.95
LNSTGOV
LGIP
LoneStar Govt OM
0.00
1,011.60
1,011.60
0.00
0.00
0.00
1,011.60
TEXPOOL
LGIP
TexPool
0.00
2,106.17
2,106.17
0.00
0.00
0.00
2,106.17
TEXSTAR
LGIP
TexSTAR
0.00
3,779.73
3,779.73
0.00
0.00
0.00
3,779.73
CD-0403-5
CD
Comerica Bk CD 0.280 08124/15
313.03
3,561.72
3,600.66
0.00
274.09
0.00
3,561.72
369592J5
CP - DISC
GE Capital Corp 0.000 12/18/15
0.00
0.00
0.00
0.00
0.00
3,640.00
3,640.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
526.20
2,818.05
2,848.54
0.00
495.71
0.00
2,818.05
3130A4EJ7
AGCY BULET
FHLB 0.310 03/22/16
232.50
2,325.00
0.00
0.00
2,557.50
150.30
2,475.30
8827226Y2
MUNICIPAL
TX Trans Comm Hwy lmpt GO 1.500 04/01/16
42,375.00
21,187.50
42,375.00
0.00
21,187.50
(13,069.86)
8,117.64
3133EESZ4
AGCY BULET
FFCB 0.460 07/12/16
728.33
3,450.00
0.00
0.00
4,178.33
(246.63)
3,203.37
3135GOGY3
AGCY BULET
FNMA 1.250 01130/17
6,354.17
9,375.00
0.00
0.00
15,729.17
(3,162.66)
6,212.34
3133EDXT4
AGCY BULET
FFCB 0.840 04/17/17
11,480.00
6,300.00
12,600.00
0.00
5,180.00
(839.31)
5,460.69
3134G5XB6
AGCY CALL
FHLMC 1.000 04/28/17
5,250.00
2,250.00
7,500.00
0.00
0.00
0.00
2,250.00
3134G6NV1
AGCY CALL
FHLMC 0.875 04/28/17
0.00
7,656.25
0.00
0.00
7,656.25
0.00
7,656.25
3133ECMZ4
AGCY CALL
FFCB 0.690 05/01/17
8,625.00
5,175.00
10,350.00
0.00
3,450.00
1,036.14
6,211.14
3133EDVU3
AGCY BULET
FFCB 1.125 09/22/17
843.75
8,437.50
0.00
0.00
9,281.25
(841.92)
7,595.58
3135GOPL1
AGCY CALL
FNMA 1.050 10/04/17
25,812.50
13,125.00
26,250.00
0.00
12,687.50
229.40
13,354.40
3133813R4
AGCY CALL
FHLB 1.000 11/09/17
39,444.44
25,000.00
50,000.00
0.00
14,444.44
0.00
25,000.00
3135GOUX9
AGCY CALL
FNMA 1.200 02128/18
5,500.00
15.000.00
0.00
0.00
20,500.00
0.00
15,000.00
Total for General Operating
147,484.92
133,927.47
163,790.65
0.00
117,621.74
(13,104.54)
120,822.93
TEXPOOL
LGIP
TexPool
0.00
142.56
142.56
0.00
0.00
0.00
142.56
TEXSTAR
LGIP
TexSTAR
0.00
280.68
280.68
0.00
0.00
0.00
280.68
Total for Parks Development Corporation 0.00 423.24 423.24 0.00 0.00 0.00 423.24
Total for City of Southlake 147 484.92 134 350.71 164,213.89 0.00 117,621.74 113,104.541 121,246.17
Print Date: 7117/2015 Print Time: 10:06 am Page 1 of 1
Page 8 of 14
City of Southlake
FlrstSouthwest Investment Transactions
A PlainsCapital Company From 0410112015 to 0613012015
Trade Settle Security Principal Int Purchased I Realized
Date Date CUSIP Type Security Description Coupon Mty Date Call Date Par Valor' Price Amount Received Total Amount Gain I Loss YTM YTW
General Operating,;
Calls
04/27/15 04/28/15 3134G5XB6 AGCY CALL FHLMC 1.000 04/28/17 04/28/15 3,000,000.00 100.000 3,000,000.00 0.00 3,000,000.00 1,000
Total for: Calls 3,000.000.00 3,000,000.00 0.00 3,000,000.00 1.000
Purchases
03/24/15 04/28/15 3134G6NV1 AGCY CALL FHLMC 0.875 04/28/17 07/28/15 5,000,000.00 100.000 5,000,000.00 0.00 5,000,000.00 0.875 0.875
'otal for. Purchases
5,000,000.00 5,000.000.00
0.00
5,000,000.00 0.875 0.875
Income Payments
04/01/15 04/01/15
8827226Y2
MUNICIPAL
TX Trans Comm Hwy Impt C
1.500
04/01/16
0.00
42,375.00
42,375.00
04/05/15 04/04/15
3135GOPL1
AGCY CALL
FNMA
1.050
10/04/17
0.00
26,250.00
26,250.00
04/15/15 04/15/15
CD-7910-2
CD
Comerica Bk CD
0.370
03/15/16
0.00
959.54
959.54
04/17/15 04/17/15
3133EDXT4
AGCY BULET
FFCB
0.840
04/17/17
0.00
12,600.00
12,600.00
04/24/15 04/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
0.00
1,212.98
1,212.98
04/28/15 04/28/15
3134G5XB6
AGCY CALL
FHLMC
1.000
04/28/17
0.00
7,500.00
7,500.00
05/01/15 05/01/15
3133ECMZ4
AGCY CALL
FFCB
0.690
05/01117
0.00
10,350.00
10,350.00
05/11115 05/09/15
3133813R4
AGCY CALL
FHLB
1.000
11/09/17
0.00
50,000.00
50,000.00
05/15/15 05/15/15
CD-7910-2
CD
Comerira Bk CD
0.370
03/15/16
0.00
928.87
928.87
05/24/15 05/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
0.00
1,174.13
1,174,13
06/15/15 06/15/15
CD-7910-2
CD
Comerica Bk CD
0.370
03/15/16
0.00
960.13
960.13
06/24/15 06/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
0.00
1,213.55
1,213.55
Total for: Income Payments
0.00
155,524.20
155,524.20
Capitalized Interest
04/15/15 04/15/15
CD-7910-2
CD
Comerica Bk CD
0.370
03/15/16
959.54
100.000
959.54
0.00
959.54
04/24/15 04/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
1,212.98
100.000
1,212.98
0.00
1,212.98
05/15/15 05/15/15
CD-7910-2
CD
Comerica Bk CD
0.370
03/15/16
928.87
100.000
928.87
0.00
928.87
05/24/15 05/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
1,174.13
100.000
1,174.13
0.00
1,174.13
06/15/15 06/15/15
CD-7910-2
CD
Comerica Bk CD
0.370
03/15/16
960.13
100.000
960.13
0.00
960.13
06/24/15 06/24/15
CD-0403-5
CD
Comerica Bk CD
0.280
08/24/15
1,213.55
100.000
1,213.55
0.00
1,213.55
Print Date: 7/17/2015 Print Time: 10:06 am Page 1 of 3
Page 9 of 14
1V*
Firstsouthwest
A PlainsCapital Company
City of Southlake
investment Transactions
From 0410112015 to 0613012015
Trade Settle Security Principal Int Purchased I Realized
Date Date CUSIP Type Security Description Coupon Mty Date Call Date Par Value Price Amount Received Total Amount Gain I Loss YTM YTW
General Operating
i otal for Caudalizen Interest 6,449.20 6,449.20 0.00 6,449.20
Print Date 7/17/2015 Print Time: 10:06 am Page 2 of 3
Page 10 of 14
1�*
FirstSouthwest
A PlainsCapital Company
City of Southlake
Investment Transactions
From 0410112015 to 06/30/2015
Trade Settle SecurityInt Purchased I Realized
Date Date CUSIP Type Security Description Coupon Date Call Date Par Value prim principal Received Total Amount Gain 1 Loss YTM YTW
YP ty Pt P MtY Amount
Total• Portfolios
Transaction Type Quantity Total Amount Realized GIL YTM YTW
Total Calls 3,000,000.00 3,000,000.00 1.000
Total Purchases 5,000,000.00 5,000,000.00 0.875 0.875
Total Income Payments 0.00 155,524.20
Total Capitalized Interest 6,449.20 6,449.20
Print Date: 7/17/2015 Print Time 10:06 am
Page 3 of 3
Page 11 of 14
J�*
FirstSouthwest
A PlainsCapital Company
City of Southlake
Amortization and Accretion
From 03/31/2015 to 06/30/2015
Orig
Amrt/Accr
TotalAmd/Accr
Remaining
:USIP Settle Date Security Type
Security Description
Next Call Date Purchase City
Price
Original Cost
for Period
Since Purch
Disc / Prem Book Value
General Operating
CD-0403-5
02/24/14
CD
Comerica Bk CD 0.280 08/24/15
5,104,265.06
100.000
5,104,265.06
0.00
0.00
0.00
5,104,265.06
36959JZJ5
03/23/15
CP - DISC
GE Capital Corp 0.000 12/18/15
4,000,000.00
99.730
3,989,200.00
3,640.00
4,000.00
6,800.00
3,993,200.00
CD-7910-2
09/15114
CD
Comerica Bk CD 0.370 03/15/16
3,056,292.45
100.000
3,056,292.45
0.00
0.00
0.00
3,056,292.45
313OA4EJ7
03/23/15
AGCY BILLET
FHLB 0.310 03/22/16
3,000,000.00
99.980
2,999,400.00
150.30
163.65
436.35
2,999,563,65
8827226Y2
12/19/12
MUNICIPAL
TX Trans Comm Hwy Impt GO 1.500 04/01/16
5,650,000.00
103.023
5,820,799.50
(13,069.86)
(131,515.50)
(39,284.00)
5,689,284.00
3133EESZ4
03/23/15
AGCY BULET
FFCB 0.460 07/12/16
3,000,000.00
100.043
3,001,284.00
(246.63)
(268.56)
(1,015,44)
3,001,015.44
3135GOGY3
01128114
AGCY BULET
FNMA 1.250 01130/17
3,000,000.00
101.270
3,038,100.00
(3,162.66)
(17,948.58)
(20,151.42)
3,020,151.42
3133EDXT4
10/24/14
AGCY BILLET
FFCB 0.840 04/17/17
3,000,000.00
100.279
3,008,364.00
(839.31)
(2,298.54)
(6,065.46)
3,006,065.46
3134G5XB6
01/28/15
AGCY CALL
FHLMC 1.000 04/28/17
04/28/15
0.00
100.000
0.00
0.00
0.00
0.00
0.00
3134G6NV1
04/28/15
AGCY CALL
FHLMC 0.875 04/28/17
07/28/15
5,000,000.00
100.000
5,000,000.00
0.00
0.00
0.00
5,000,000.00
3133ECMZ4
10/24/14
AGCY CALL
FFCB 0.690 05/01/17
3,000,000.00
99.650
2,989,500.00
1,036.14
2,839.26
7,660.74
2,992,339.26
3133EDVU3
11/17/14
AGCY BILLET
FFCB 1.125 09/22/17
3,000,000.00
100.322
3,009,660.00
(841.92)
(2,081.46)
(7,578.54)
3,007,578.54
3135GOPL1
02/21/13
AGCY CALL
FNMA 1.050 10/04/17
07/04/15
5,000,000.00
99.915
4,995,750.00
229.40
2,152.75
2,097.25
4,997,902.75
3133813R4
01/17/13
AGCY CALL
FHLB 1.000 11/09/17
07/09/15
10,000,000.00
100.000
10,000,000.00
0.00
0.00
0.00
10,000,000.00
3135GOUX9
03/12/13
AGCY CALL
FNMA 1.200 02128/18
08/28/15
5,000,000.00
100.000
5,000,000.00
0.00
0,00
0.00
5,000,000.00
Total for General Operating 60,810,557.51 61.012,615.01 (13.104.54) (144,956.98) (57,100.52) 60,867,658.03
Total for City of Southlake 60 810 557.51 61,012,615.01 (13,104.54) (144,956.98) (57,100.52) 60,867,658.03
Print Date: 7/17/2015 Print Time: 10:06 am Page 1 of 1
Page 12 of 14
•••• ! 1•••40 1 140•404%db44 *4* 6 1 1 t b k► k I! 1 1!! 1 1 1! 1 1+••�
J�*
FirstSouthwest
A PlainsCapitai Company.
City of Southlake
Projected Cash Flows
Cash Flows for next 180 days from 06/30/2015
CUSIP
Security Type
Security Description
Pay Date
Interest
Principal
Total Amount
General Operating
3133EESZ4
AGCY BULET
FFCB 0.460 07/12/16
07/12/15
4,600.00
0.00
4,600.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
07/15/15
942.35
0.00
942.35
CD-0403-5
CD
Comerica Bk CD 0.280 08/24/15
07/24/15
1,190.99
0.00
1,190.99
3135GOGY3
AGCY BULET
FNMA 1.250 01/30/17
07/30/15
18,750.00
0.00
18,750.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
08/15/15
942.35
0.00
942.35
CD-0403-5
CD
Comerica Bk CD 0.280 08/24/15
08/24/15
1,190.99
5,104,265.06
5,105,456.05
3135GOUX9
AGCY CALL
FNMA 1.200 02/28/18
08/28/15
30,000.00
0.00
30,000.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
09/15/15
942.35
0.00
942.35
313OA4EJ7
AGCY BULET
FHLB 0.310 03/22/16
09/22/15
4,650.00
0.00
4,650.00
3133EDVU3
AGCY BULET
FFCB 1.125 09/22/17
09/22/15
16,875.00
0.00
16,875.00
8827226Y2
MUNICIPAL
TX Trans Comm Hwy Impt GO 1.500 04/01/16
10/01/15
42,375.00
0.00
42,375.00
3135GOPL1
AGCY CALL
FNMA 1.050 10/04/17
10/04/15
26,250.00
0.00
26,250.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
10/15/15
942.35
0.00
942.35
3133EDXT4
AGCY BULET
FFCB 0.840 04/17/17
10/17/15
12,600.00
0.00
12,600.00
3134G6NV1
AGCY CALL
FHLMC 0.875 04/28/17
10/28/15
21,875.00
0.00
21,875.00
3133ECMZ4
AGCY CALL
FFCB 0.690 05/01/17
11/01/15
10,350.00
0.00
10,350.00
3133813R4
AGCY CALL
FHLB 1.000 11/09/17
11/09/15
50,000.00
0.00
50,000.00
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
11/15/15
942.35
0.00
942.35
CD-7910-2
CD
Comerica Bk CD 0.370 03/15/16
12/15/15
942.35
0.00
942.35
369592J5
CP - DISC
GE Capital Corp 0.000 12/18/15
12/18/15
0.00
4,000,000.00
4,000,000.00
Total for General Operating 246,361.08 9,104,265.06 9,350,626.14
Print Date: 7/17/2016 Print Time: 10:06 am Page 1 of 2
Page 13 of 14
1�*
FirstSouthwest
A PlainsCapital Company
City of Southlake
Projected Cash Flows
Cash Flows for next 180 days from 06/30/2015
CUSIP Security Type Security Description Pay Date Interest Principal Total Amount
Total• Portfolios
July 2015
25,483.34
0.00
25,483.34
August 2015
32,133.34
5,104,265.06
5,136,398.40
September 2015
22,467.35
0.00
22,467.35
October 2015
104,042.35
0.00
104,042.35
November 2015
61,292.35
0.00
61,292.35
December 2015
942.35
4,000,000.00
4,000,942.35
Print Date: 7/17/2015 Print Time: 10:06 am
Total Projected Cash Flows for City of Southlake 246,361.08 9,104,265.06 9,350,626.14
Page 2 of 2
Page 14 of 14
V ITY OF
SOUTHLAK.E
TEXAS
CAPITAL PROJECTS UPDATE
July 2015
ACTIVE CITY CONSTRUCTION PROJECTS
• 8-inch Water Line connector from Lake Dr/Burney Ln to Palo
. Duro/Lonesome Dove
This project involves connecting an 8-inch water line at Lake Dr. and Burney Ln. to
the existing 6-inch waterline at Palo Duro and Lonesome Dove by installing 1600 feet
of 8-inch PVC. The new line will provide increased water pressure and flow, and will
establish a loop for fire protection to the Dove Estates Subdivision. This section of
water line is located on the Southlake 2030 Master Water Plan. This project is
substantially complete.
Current funding $350,000
Expenditures to date 96,838
• Available balance $253,162
• Brumlow Avenue Improvements
The Brumlow Ave improvement project will widen approximately 1400 linear feet of
• Brumlow by expanding the existing road to five lanes undivided in order to
accommodate the TxDOT construction of dual left turns for SH 26 to north bound
Brumlow. The design is at 100%. Negotiations are complete with property owners
for easements. City and franchise utility relocations are complete. A future project,
currently unfunded, will widen the remainder of Brumlow Avenue extending north to
the existing roundabout at Continental Blvd. Construction anticipated to begin
Summer 2015.
Roadway
Roadway
Impact
Total
Current funding $600,000
$145,000
$745,000
Expenditures to date 80,916
95,398
176,314
Available balance $519,084
$ 49,602
$568,686
Citywide Pavement Rehabilitation (PMA)
The PMA is an on -going program which consists of the major repair and/or
rehabilitation of local streets throughout the City of Southlake to improve pavement
condition and rideability after the completion of neighborhood utility projects. One-
third of the City's streets are surveyed annually with the Pavement Management
Application (PMA) software designed by Stantec, which generates a pavement
quality report. The PMA scores each street on the surface condition of the road
(SDI), the riding quality of pavement (RCI), and the structural adequacy of the
pavement (SAI). These scores are then averaged to calculate the Pavement QualiitY
Index (PQI) for the roadway. The overall PQI for the City is the average of all the
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
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CITY OF
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• CitVwide Pavement Rehabilitation (PMA), continued
road's PQls. The Department has established a minimum overall PQI of 7.8 out of a
possible 10.0. The current score is 8.3. FY 2015 results are currently being
analyzed.
Current funding $3,743,923
Expenditures to date 3,500,001
Available balance $ 243,922
FM1938
The FM1938 project involves paving, utility, and drainage improvements along the
existing Randol Mill Road from FM1709 to SH114 to four lanes divided. Construction
of FM1938 will be in two phases. Construction of Phase I from the bend in Randol
Mill Road to SH114 through Westlake is complete. Phase II from the intersection of
FM1709 and Randol Mill Road/Davis Blvd. to the bend in Randol Mill in Southlake is
nearing 100% design. The Public Hearing on the entire project was held November
6, 2008 at the Cross Timbers Community Church in Keller, TX. Phase II right of way
and easement acquisition by Tarrant County is complete. Relocation of city water
and sewer, as well as franchise utilities (gas, electric, cable, telephone, etc.) is
currently underway. TxDOT construction began March 2015 and is anticipated to be
completed by 2018.
Roadway
Roadway
Impact Total
Current funding $4,366,449
$660,000 $5,026,449
Expenditures to date 3,443,235
678,001 4,121,236
Available balance $ 923,214
$-18,001 $ 905,213
FM1938 Drainage Relief for Phase II
This project will benefit those areas and drainage structures that are in need of
rehabilitation in order to alleviate reported flooding and potential flooding due to
undersized culverts or inadequate drainage. These improvements are included in the
FM 1938 construction plans which are now underway.
Current funding $225,000
Expenditures to date 0
Available balance $225,000
Love Henry Ct. Drainage Improvements
This project will implement drainage improvements along Love Henry Ct. north of
Southlake Blvd. and Bicentennial Park, and east of Shady Oaks Dr. The
improvements to the current drainage system will include upsizing of the pipe and
additional grading to prevent possible flooding on Love Henry Ct. during heavy
rainfall conditions. Engineering design is nearing completion. Construction is
anticipated to begin Fall 2015.
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
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_ITY OF
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• Love Henry Ct. Drainage Improvements, continued
Current funding $340,000
Expenditures to date 48,383
Available balance $291,617
North Carroll Avenue at Federal Way
This project will construct a traffic signal at the intersection of Federal Way at North
Carroll Avenue. This is part of a larger intersection improvement project which
includes a right turn lane from Federal Way to northbound Carroll Avenue as well as
an 8-foot sidewalk along Federal Way. Construction of right turn lane and illuminated
street sign are complete.
Current funding $332,750
Expenditures to date 294,469
Available balance $ 38,281
Nolen Drive Connector
This project will complete the roadway connection of Nolen Dr. between Exchange
Blvd. and Industrial Blvd. in Grapevine. This project is a joint project between the City
of Southlake and the City of Grapevine. Design and ROW acquisition are currently
underway.
Current funding $150,000
Expenditures to date 8,142
Available balance $141,858
North Kimball Avenue Street Widenina from SH114 to Dove Road
This project involves paving, utility, and drainage improvements for the widening of
North Kimball Ave. from SH114 to Dove Rd. to its ultimate four lane divided
pavement section with center landscaped medians and six-foot sidewalks on both
sides of the street. Phase I for SH 114 to Kirkwood Blvd is complete. Phase II is the
continuation along N. Kimball Ave. from Kirkwood Blvd. up to Dove Rd. Construction
is substantially complete with punch list items remaining.
Roadway
Roadway
Impact
utility
Total
Current funding $9,406,606
$1,260,000
$1,163,546
$11,830,152
Expenditures to date 8,839,521
1,034,262
603,816
10,477,599
Available balance $ 567,085
$ 225,738
$ 559,730
$ 1,352,553
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
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CITY OF
SOUTHLAK.E
TEXAS
N. White Chapel from Emerald to SH114
This project involves paving, utility, and drainage improvements for the widening of
N. White Chapel Blvd. from Emerald Blvd. to SH114 to its ultimate pavement section
of four lanes divided. This project has been divided into two phases. Phase I
extends from Emerald Blvd. to Highland St. and is currently at 95% design. Phase II
is the continuation of the widening from Highland St. to SH114 including a dual -lane
roundabout at the N. White Chapel Blvd/Highland St. intersection, and the design is
currently 95% complete. Right of way acquisition is currently underway. Utility
relocations will begin once all right of way is acquired.
Roadway
Roadway
Impact
utility
Total
Current funding $9,991,000
$1,414,000
$1,445,000
$12,850,000
Expenditures to date 961,142
777,277
81,824
1,820,243
Available balance $9,029,858
$ 636,723
$1,363,176
$11,029,757
Pearson GST Painting
The project includes blasting and applying new coating systems for the existing 5.0
million gallon (MG) ground storage tanks (GST). Minor tank repairs and modifications
are also included in the project scope. The project site is located near the
intersection of Southlake Boulevard (F.M. 1709) and N. Pearson Lane. The work on
west tank is almost complete. Minor foundation repair and tank refilling tasks are
outstanding and anticipated to complete by 7/10/2015. After refilling the tank, the
water will be tested for compliance before it will be put on service. The repainting of
east tank will be performed in the fall when the water demand is less.
Current funding $1,000,000
Expenditures to date 189,830
Available balance $ 810,170
Pressure Compensating Valves
This project will include the installation of pressure regulating valves (PRV) between
the City's high pressure and low pressure water systems. This will improve fire flow
capacities in the event of an emergency during peak water use periods. This project
will also require the construction of vaults, and the installation of electronic telemetry
to monitor and activate the valves via the City's current remote system. Construction
is anticipated to be completed Summer 2015.
Current funding $862,245
Expenditures to date 815,343
Available balance $ 46,902
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
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%ITY OF
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TEXAS
Sanitary Sewer System Rehabilitation Program
This project was the result of a three year Sanitary Sewer Evaluation Study
conducted by RJN from FY2008 to FY2010. The final report from the SSES
recommended the rehabilitation of 358 sewer manholes including replacing manhole
rings/lids, corbel, invert, clean -out, and point repairs, as well as street and pavement
repairs resulting from activities associated with conducting the manhole repairs.
These repairs were recommended in order to prevent inflow and infiltration of storm
water and ground water which should lower the City's treatment costs to Trinity River
Authority. The project is in its last year.
Current funding $600,000
Expenditures to date 329,013
Available balance $270,987
Shady Oaks Roadway and Utility Improvements Project
This project will implement utility improvements along Shady Oaks beginning at the
north property line of Durham Elementary School to the intersection of Fox Glen.
These improvements will include an 8" sanitary sewer line and a 12" water line from
just south of Highland Street to Fox Glen along Shady Oaks Drive. Construction is
anticipated to begin Fall 2015.
Utility Sewer Impact Total
Current funding $1,750,000 $300,000 $2,050,000
Expenditures to date 39,000 39,000 78,000
Available balance $1,711,000 $261,000 $1,972,000
South Carroll Avenue at Zena Rucker Road Traffic Signal
The recent additions of the Park Village retail development and the Winding Creek
Addition residential development have accelerated the need for construction of a
signal at the intersection of South Carroll Avenue and Zena Rucker Road. In
October 2012 as part of Southlake 2030, Kimley-Horn, Inc. completed the South
•
Carroll Avenue Improvements Study which provided recommendations to the City
for improving mobility along South Carroll Avenue between Southlake Boulevard
(FM 1709) and Breeze Way. The study included the extension of Zena Rucker Road
'
from the west to the intersection of South Carroll Avenue between the commercial
and residential site. The addition of the signal will reduce delays and improve
ingress and egress to the commercial developments. The signal is currently under
design.
Roadway
Roadway Impact Total
S
Current funding $200,000 $ 188,000 $388,000
Expenditures to date 0 18,600 18,600
Available balance $200,000 $ 169,400 $369,400
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
Page 5 of 9
CITY OF It
0
SOUTHLAKE low
Am
[TEXAS
• South Kimball Avenue at East Continental Boulevard Traffic Sianal
The recent addition of the Stadium Southwest commercial development has
prompted the need for a traffic signal at the intersection of South Kimball Avenue
and East Continental Boulevard. The addition of the signal will reduce the potential
for traffic conflicts at this intersection. Construction of the signal will begin in the
Summer of 2015.
Current funding $200,000
Expenditures to date 0
Available balance $200,000
• South White Chapel at Big Bear Creek Scour Mitigation
This project will address the immediate problem of scour (erosion) around columns
supporting the main bridge deck. Engineering design is complete. This is a joint
project with Colleyville. This project is complete.
Current funding $150,000
Expenditures to date 173,897
Available balance $-23,897
• Street Rehabilitation Partnership Program
This is an annual project which involves the rehabilitation of arterial streets within
Southlake in partnership with Tarrant County. The City of Southlake funds the costs
of materials, and Tarrant County provides labor and equipment. The FY 2014 project
presented to Tarrant County focused on Ridgecrest Drive. The limits of this project
are from East Dove Road to Southlake Park Drive for a total of 3900 linear feet. The
FY 2015 Project will focus on resurfacing S. White Chapel from the roundabout on
Continental Blvd. to the bridge at Bear Creek. Construction is anticipated to begin
Summer 2015.
Current funding $1,235,000
Expenditures to date 1,067,229
Available balance $ 167,771
• Torian Lane Sanitary Sewer Lift Station
This project consists of the design and construction of a sanitary sewer lift station at
Torian Ln. to serve the Royal Oaks and Twin Creek Neighborhoods as well as future
development along Torian Ln. The project is under design. Construction is
anticipated to begin FaIIM/inter 2015.
Current funding $600,000
Expenditures to date 0
Available balance $600,000
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
Page 6 of 9
-ITY OF
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TEXAS
• Zena Rucker Culvert
This project calls for culvert improvements for the crossing of Zena Rucker Road.
The construction of a culvert is intended to facilitate the future extension of Zena
Rucker Road. The engineering drainage study is complete. Construction will be
incorporated with adjacent development.
Current funding $200,000
Expenditures to date 29,991
Available balance $170,009
Town Square Enhancements Project
This project is for improvements to streets, sidewalks, drainage and landscaping to
attract visitors and shoppers. In FY 2012 the sidewalks around Town Hall were
reconstructed and drainage corrections were made at the ramp leading to the first
floor on the southwest corner of the building. Milling and overlay of Central from FM
1709 to Main Street and Prospect from N. Carroll to State and the Rustin Park
gazebo renovation were completed in FY 2013. Each fiscal year also includes
landscaping and irrigation improvements. FY 2015 funds the construction of State
from Federal Way to SH 114 to provide a connection from Town Square to SH 1 14.
Current funding $948,540
Expenditures to date 748,385
Available balance $200,155
• Bicentennial Park Improvements Phase II
The Bicentennial Park Improvement Project is a multi -phase project set to transform
the existing park into a beautiful, safe and functional signature park for Southlake.
Phase II of this project includes a new playground, Miracle League baseball field,
. 60/90 baseball field, new concession/restroom facility, enhancement to the original
baseball 4-plex, park boulevard connection to White Chapel Blvd., new Park
Maintenance Facility, parking, trails, enhanced landscape and irrigation
• improvements, including an additional new water well. The project has been bid and
construction began in January 2014. The project is approximately 90% complete
and the anticipated completion date is the Fall of 2015.
Current funding $ 14,256,363
Expenditures to date 12,250,103
Available balance $ 2,006,260
Community Recreation Center
The Community Recreation Center project was recommended by the Southlake
2030 Parks, Recreation & Open Space / Community Facilities Master Plan, and
approved by the City Council as a priority project for FY 2014. An architectural
engineering design services agreement was awarded in August 2013 and is
complete. The design is separated into Phase I & II. The groundbreaking for
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
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CITY OF
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Community Recreation Center, continued
Phase I was held in September 2014 and is expected to be completed in late 2015.
The construction of Phase II is anticipated to begin in the Fall of 2016.
Current funding $ 17,120,000
Expenditures to date 7,437,158
Available balance $ 9,682,842
DPS West reconfiguration
Following the construction of the new DPS North facility, the current DPS West
configuration will need to be updated. The update is to reconfigure the building to
increase the size and number of community/training rooms to be used by the
Community Initiatives sections for community outreach and training, expand the Fire
Day Room and replace the overhead doors. A needs assessment has been
completed.
Current funding $ 1,000,000
Expenditures to date 46,139
Available balance $ 953,861
RECENTLY COMPLETED PROJECTS
12-inch Water Line Extension on West Bob Jones
This project involves installing a 12-inch water line in order to provide water service
to the properties along West Bob Jones. The installation of the waterline will provide
fire protection to nearby properties and allow for development in this area, which is
currently vacant land. Construction of Phase I is complete. ROW acquisition is
complete for Phase 2. Project completed in May 2015.
Current funding $525,000
Expenditures to date 136,465
Available balance $388,535
FM1938 Waterline and Sewer Relocation Proiect for Phase 11
The FM 1938 Phase II widening project required that City water and sanitary sewer,
along with franchise utilities, be relocated outside of the proposed drive lanes of FM
1938 — between the intersection of FM 1709 and the Randol Mill bend. The project
consisted of relocating approximately 10,000 linear feet of water line and
approximately 5,400 linear feet of sanitary sewer relocation or extension. This project
is complete.
Current funding $2,558,127
Expenditures to date 1,799,944
Available balance $ 758,183
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
Page 8 of 9
CITY C
SOUTHLAKE
TEXAS
• Illuminated Street Name Signs (ILSN) and Traffic Signal Battery Backups
along Southlake Boulevard
This project includes the installation of backlit intersection signage at up to 14 major
intersections along Southlake Blvd. similar to the existing signage at Kimball Avenue
and SH114. This project includes the intersections of FM1709 at SH114, Commerce
St., Central Ave., Nolen Dr., Kimball Ave., Village Center Dr., Carroll Ave., Byron
Nelson Parkway, White Chapel Blvd., Shady Oaks Dr., Waterford Dr., Peytonville
Ave., Randol Mill Rd., and Pearson Ln. This project will improve safety for the driving
public by improving the visibility of major intersection signage at night. This project is
complete.
Current funding $609,779
Expenditures to date 513,757
Available balance $ 96,022
Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork
Page 9 of 9
"Even though the FOMC may be fully justified in postponing the tightening of
• monetary policy, it's becoming a credibility issue. At some point, the Fed
• may have to hold its collective breath and pull the trigger."
' ast 1 3/31 /15 10.00% 10.02% 10.14% 10.56% 1 1.37% 1 1.92%
sigh ( 10.00% 1 0.03% 1 0.11 % 1 0.73% 1 1.79% 1 2.49%
Wow 1 10.00% 10.00% 10.02% 10.48% 1 1.25% 1 1.84% 1
/15 10.00% 10.01 % 10.11 % 10.65% 1 1.65% 12.35% 1
iy the end of June, the U.S. economy had technically entered
s 731d month of recovery, far exceeding the 58 month post
Oar average. But, the lengthy expansion has been hampered by
Oft unusual number of growing pains. The most recent came
Wth a -0.2% contraction in the latest revision of first quarter
DR It was an improvement from the previously reported
tegan.
.7%print, but not quite enough for the U.S. to sidestep
e third negative quarterly GDP reading since the recovery
By contrast, there had never been more than a single
contraction in any of the 10 previous U.S. recovery cycles
fating back to WWII. Much of the blame for the Q1 stumble
#ad been pinned on inclement weather, port disruptions and
,jaulty seasonable adjustments, but the reality is probably more
losely tied to the strong dollar. Soon after the second quarter
Oegan, the dollar started weakening. The primary reason was
Wat while economic conditions dampened in the U.S., they
•ppeared to improve in Europe. The weaker dollar helped
flush crude oil prices higher, which provided a welcome bit of
ipeadline inflation. Also welcomed was a resumption in U.S.
4 ob creation, above trend retail sales, a spring boom in both
uto and home sales, and a leap in consumer confidence. For a
While, the outlook was decidedly positive.
*Jnfortunately, by the end of the second quarter, the financial
*arket headlines had shifted away from the U.S. economic data
and timing of upcoming Fed rate hikes to the international
Oarkets, where Greece, China and the tiny U.S. territory of
*Puerto Rico had all entered crisis mode. The IMF reported in
`April that it would not be granting Greece an extension on its
•scheduled debt payment, and at the end of June, Greece became
*the first developed country to default on an IMF loan. On July
20', the government in Athens will have to figure out how to
•make a scheduled $3.5 billion payment to the European Central
Bank. Since there is no money available, Greece has requested
a new rescue loan, but the loan terms, which included even
more belt -tightening on a country that just recently emerged
from a painful six -year recession, one that shrunk the Greece
economy by 25%, aren't palatable to the citizens who voted
overwhelmingly against the latest conditions. Now with time
running out in early July, European leaders are focusing on the
details of the "Grexit;' the catchphrase describing a Greek exit
from the euro. Although the financial markets have had many
years to prepare for what in retrospect seemed inevitable, there
is still much uncertainty over how it will all play out.
While Greece was front page news, China was writing its
share of headlines. Over the past year, one of the biggest
stories in China has been their surging stock market. Despite
a slowing economy and shrinking corporate profits, and
driven primarily by retail investors, the Shanghai Stock
Exchange Composite Index soared more than 150% in
less than 12 months. It was a classic bubble with sky-high
valuations, but over -leveraged investors enjoyed the ride
until June 12th when it all started to unravel. What was
once seen as a "healthy correction" turned into a rout as
panicked sellers completely overwhelmed buyers. In just
four weeks the index had lost 32% of its value, erasing $3
trillion in market value. The Chinese government tried to
stop the crash by forcing mutual funds and state pensions
to buy stocks and suspending issuance of new IPOs, while
more than 1,300 companies suspended equity trading, but
the selloff continues as of this writing. The bubble burst
will complicate Chinas efforts to reignite growth. After
averaging nearly II% GDP growth from 2003 to 2011, the
Chinese economy has averaged just +7.5% in the last three.
Unfortunately, while the economy has slowed, borrowing has
increased significantly. Since the financial crisis in 2008, total
Chinese government, corporate and household debt soared
from $8 trillion to $28 trillion, while GDP rose from $4.5
trillion to $10.5 trillion.
Puerto Rico is also a debt story, although minor by comparison.
The small U.S. territory trades in dollars and its people are
American citizens. It has $72 billion in outstanding debt that
it's unable to pay and it is unable to seek relief under current
U.S. bankruptcy laws. Puerto Rico has half as much debt as
California but only one -tenth the population. It bought time at
the end of June when the Puerto Rico Electric Power Authority
paid bondholders from its debt service reserves and general
fund balance, but like Greece there's no apparent long term
fix. What had been a rather quiet quarter got very loud as June
came to a close.
CONSUMER SPENDING
At the beginning of the year, the lack of consumer spending
was puzzling. After all, the labor market was much improved,
consumer confidence was fairly strong and perhaps $100
million had been saved and pocketed at U.S. gas pumps since
the beginning of last summer. The Federal Reserve reported
that increases in home prices and investment values had
added $1.6 trillion to the balance sheets of American families
during the first three months of the year, pushing total U.S.
household wealth to a new record $85 trillion. At the same
time, the household debt -to -income ratio had dipped to a 13-
year low of 106%, contributing to near record low debt service
costs. So, after three straight months of negative retail sales
growth during an apparent hibernation period, the consumer
reemerged with monthly retail sales increases of +1.5% in
March, +0.2% in April and +1.2% in May. The March data may
have simply been a warm weather snapback, but May seemed
to reflect a reenergized consumer. Gasoline and auto sales
led the way with nearly two-thirds of May's +1.2% increase
attributable to those two categories. Automobile dealers sold
cars and light trucks at a 17.7 million unit annual rate in May,
the fastest pace since July 2005, while higher gas prices helped
boost service station sales. The outlook for the next couple
of months improved as personal spending rose +0.9% in the
month of May to the highest level in six years and personal
income increased +0.5%, matching a 15-month high.
HOUSING
The housing market rebounded nicely as the weather warmed,
and by multiple measures is in its best position since the
recovery began. Housing starts surged +20.2% in April to
an annual rate of 1.165 million units, the highest level since
November 2007. Building permits, which are more of a
leading indicator, rose +10.1% in April to an annual rate of
1.143 million, the highest in almost seven years, while pending
home sales reached a nine-year high.
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NEW AND EXISTING HOME SALES
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The average 30-year fixed mortgage rate rose back above 4% in
early May according to the Mortgage Bankers Association, but
the increase might have served only to spur hesitant buyers
into action before rates moved even higher. Existing home sales
rose by +5.1% in May to an annualized pace of 5.35 million
units, the fastest pace of sales since November 2009, a period
when home sales were bolstered by a generous government
tax credit for first-time home buyers. Without federal support,
it had been more than eight years since home sales were this
strong. First-time buyers, largely absent from the housing
recovery, made up 32% of all sales in May versus 27% a year
ago. According to the National Association of Realtors, the
percentage of homes purchased by first-time buyers had fallen
to 18% in 2014, less than half of the 40% historical average.
The inventory of existing homes on the market rose by +1.8%,
but due to the brisk sales pace, the available supply tightened
from 5.2 to 5.1 months. The relatively lean inventory kept
pressure on prices as the median home price rose +7.9% over
the same period a year ago to $228,700. New home sales rose
+2.2% in May to an annualized sales pace of 546k, the highest
level since February 2008. The available supply of new homes
remained at 206k, so May sales essentially pulled the month's
supply down from 4.6 to 4.5 months. As with existing home
sales, inventories are lean, which suggests future new home
construction. Reflecting this, building permits jumped another
11.8% to a fresh 8-year high in May. Clearly, this pleases
homebuilders. The NAHB homebuilder sentiment index rose
from 54 to 59 in June, the highest since September 2014 and
the 121 straight month above 50. Any reading over 50 in this
series indicates that more builders see housing conditions as
good rather than poor.
OMPLOYMENT
Unemployment Rate (Left Hand Scale) Change in Non -Farm Payrolls (Right Hand Scale)
450
400
350
300
250
200
150
100
5o
g i I 1 I lilil lililil 0
a cn Q z o
c
U N
Unemployment Rate Change in Nonfa rrrl Payrolls
EMPLOYMENT
• Change in Non -Farm Payrolls
Ohe final nonfarm payroll tally for 2014 was just over 3.1
41illion, the best year for job creation since 1999. Although the
f
mber of new jobs slowed along with the general economy in
first quarter, the pace of job creation quickened in the early
ring before dimming a bit in June. The June nonfarm payroll
*umber fell 10k short of the median forecast with a +223k
ese, but the bigger surprises were downward revisions to the
•revious two months. May payrolls were rewritten from +280k
+254k and April from +221k to +187k. The unemployment
4te (calculated from a separate household survey) fell from
to 5.3%, the lowest in seven years. However, the reason
&r the drop wasn't a flurry of new jobs, but rather a big drop
9 the number of Americans actively seeking work. The size
of the U.S. labor force fell by 432k workers which dragged
,Iihe labor force participation rate down to 62.6%, the lowest
ie
vel in 37 years. The household survey has a tendency to
quite a bit more volatile than the business survey, but the
44pparent decline in the number of people either holding jobs
Or hoping to, takes the shine off the drop in unemployment.
qkverage hourly earnings were another disappointment as June
Wages showed no change from the previous month, while May
wage gains were revised lower. As a result, the growth pace
*f year -over -year earnings declined from +2.3% to +2.0%.
Cany believe the true indication of a strong labor market
es rising wages. If this is true, we aren't there yet ... but we're
Sprobably getting close. Job creation has now been positive
46
r 57 consecutive months, a new record in the post WWII
economy. Adding to the optimism was the Job Openings and
kabor Turnover (JOLT) survey, which crushed expectations
Qvith 5.376 million job openings in April, an all-time high
for this 14-year old series. By comparison, in the summer of
2009 job postings bottomed out at 2.146 million. Unless labor
conditions dim further in the coming months, the Fed should
be satisfied enough with this half of their mandate.
INFLATION
The Fed believes inflation will, over time, rise back to
their 2% target, but even though headline inflation moved
higher along with energy prices during the quarter, core
inflation measures remained stubbornly low. The consumer
price index (CPI), the best known inflation indicator, rose
+0.4% in May. The largest monthly increase in more than
two years was attributed mostly to a +4.3% surge in energy
prices which included a +10.2% jump in gasoline prices.
This pushed headline CPI up from -0.2% on a year -over -year
basis to 0.0%. Core CPI, which excludes the volatile food
and energy prices, rose by just +0.1% in May, nudging the
year -over -year rate down from +1.8% to +1.7%. While core
CPI hovers a few ticks below the target, the Fed's preferred
inflation measure, the Personal Consumption Expenditures
(PCE) index, crept even further away as it sunk from +1.3%
to +1.2% in May. The major difference between the two
calculations is that healthcare is a bigger component of
PCE. CPI includes medical expenses that consumers pay out
of pocket, while PCE also includes spending by Medicare,
Medicaid and private healthcare insurers. Right now, out of
pocket expenses are growing, while Medicare and Medicaid
costs are being contained by the government. Regardless
of the measure, core inflation remains lower than the Fed
would like, and with Europe, China and Japan slowing down
and the dollar presumably strengthening, the U.S. will be
importing deflation.
THE FED
Although Fed officials have acknowledged global weakness
on numerous occasions and understand that a majority of
the world's developed countries are in the process of easing
rather than tightening policy, the U.S. central bank has been
focused on its own mandate, which is maintaining a stable
and reasonably low inflation rate and promoting maximum
sustainable employment. They also seem anxious to get of'zero.
As a result, at the June meeting, the FOMC appeared to be
unwavering in its intent to raise rates later this year, although
they lowered their 2015 U.S. economic growth forecast to a
range of just +1.8% to +2.0%. Fifteen of 17 committee members
believe the first rate hike will occur in 2015; however, members
now expect fewer increases. Just 10 of 17 believe there will
be two or more tightening moves this year, down from 14 in
March, leaving 7 FOMC members expecting no more than a
single increase. The median forecast for the overnight funds
target for the end of 2016 decreased from 1.875% to 1.625%,
while the forecast for the end of 2017 was reduced from
3.125% to 2.875%. Although Yellen has long insisted that the
dot -plots shouldnt be taken literally, these projections seem
awfully high after witnessing the recent global fireworks.
U.S. EQUITY MARKETS
The NASDAQ finally reached and ultimately surpassed its
record high of 5,132 set during the dot-com era 15 long years
ago. The tech -heavy index established a fresh peak of 5,160
on June 231d, before fading back to 4,987 to end the quarter.
The DOW gave back all of its 2015 gains after a late swoon,
but the S&P 500 managed to hold to a fractional gain for the
year, although it too finished down for the quarter. Most stock
analysts seem to believe second quarter earnings will generally
surprise to the upside after outlooks were dimmed in the
previous period.
The paper was prepared by First Southwest Asset Management (FSAM) and is intended for educational and
informational purposes only and does not constitute legalorinvestment advice. noris it an offer or a solicitation of
an offer to buy or sell any investment or other specific product. Information provided in this paper was obtained
from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is
not intended to imply or establish standards of care applicable to any attorney or advisor in any particular
circumstances. The statements within constitute the views of FSAM as ofthe date ofthe report and may differ from
the views ofother divisions/departments of First Southwest Company. In addition, the views are subject to change
without notice. This paper represents historical information only and Ls not an indication offuture performance
® 2015 First Southwest Asset Management, LLC. All rights reserved. TRS0715090
Alb
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401.1
CONOMIC AND INTEREST RATE OUTLOOK
cone year ago, the vast majority of the nation's economists were
ron the same page in calling for Fed rate hikes to begin in June
ir?015. Since June has now come and gone, mid -September
")ecomes the next possibility ...although at the moment,
eecember looks to be the better bet. Both the International
eonetary Fund and the World Bank recently urged the U.S.
central bank to delay the start of its rate tightening until
O2016, and as volatility rises along with global uncertainty
Obis request sounds more and more reasonable. It's become a
qVrustrating pattern. The economy grows at a respectable pace
,for just long enough to convince economists that the Fed is
won the verge of tightening, then it retracts as it did in the
first quarter ...or, the global economy falls apart as it did in
Op�he second. In no single year during the recovery that began
rn June 2009 did U.S. GDP growth reach +2.5%. Last year's
01�2.4% rate was a cycle high, but still well below the historical
norm of +3.2%. This year, after yet another negative GDP
,posting in the first quarter and a less robust spring rebound
than in 2014, it'll take an exceptionally strong second half to
duplicate last year's lackluster effort.
r
?''Fed officials are also concerned that even a small increase in
#tithe fed funds target could spark a significant bond market
,,sell-off, and they realize seven years of super -accommodative
monetary policy has fattened the stock markets. Fed Chair
Janet Yellen told IMF director Christine Lagarde in June that
the zero rate environment for short government bonds was
'pushing investors into riskier investments, saying that she
4thought stock market prices were generally "quite high.' She
went on to say that when the Fed begins raising rates, there
could be a sharp jump in long-term rates. So, (according to
Yellen) the Fed is trying to communicate its monetary policy
as clearly as possible so the markets aren't caught by surprise.
4pBut, while Yellen would like to contain long yields, there's
4P an undeniable international influence that the Fed can
do little to fend off. By mid -April, European bond yields,
driven down by ECB quantitative easing purchases early in
4P the year, suddenly seemed much too low given the improved
'inflation and economic growth expectations. As a result,
r► sellers of European bonds outnumbered buyers until yields
4P had moved to a more appropriate level. This meant German
10-year government bonds, yielding as low as 0.05% in mid -
*April, quickly readjusted to average 0.80% for the remainder
0
of the quarter. Correspondingly, U.S. bonds, which had
been benefiting from the super low yields overseas, reversed
course and moved higher. The 10-year Treasury note,
trading at around 1.90% in mid -April, approached 2.50%
before closing the quarter at 2.35%. However, with steady
QE purchases expected to continue in Europe for another 15
months, there could easily be another round of downward
pressure on long bonds. While the Fed gently lifts rates up,
market forces could well hold them down.
Even though the FOMC may be fully justified in postponing
the tightening of monetary policy, it's becoming a credibility
issue. At some point, the Fed may have to hold its collective
breath and pull the trigger.
Scott McIntyre, CFA
Senior Portfolio Manager
July 8, 2015
10