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Item 3B2 Financial Report13 CITY OF SOUTHLAI<,,-E MONTHLY FINANCIAL REPORT July 2020 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (2 months prior activity) Positive Positive Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Positive Page 4 Departmental Expenditures Summary Positive Positive Page 5 Positive = Positive variance or negative variance <1 % compared to seasonal trends. Warning = Negative variance of 1-4% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 8/13/2020 ECONOMIC INDICATORS GDP is defined as the output of goods and service produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the "advance" estimated GDP for the 1st quarter of 2020 decreased at a rate of 32.9%. Housing Starts: V 17.3% Housing starts in June 2020 were at a seasonally adjusted rate of 1,186,000, which is 17.3% above the revised previous month figure of 1,011,000 and 4.0% below the same month last year. UNEMPLOYMENT RATES National: 1/ 10.2% The National Unemployment rate dropped to 10.21i in July from 11.1 % in May 2020 due to the COVID- 19 crisis threw millions out of work. State-wide: v/ 8.6% The Texas Unemployment rate for June 2020 (preliminary) decreased to 8.6% from 13.0% in May 2020. April unemployment rate was the state's worst on record at 13.5%. In a short seven -week period during March and April, more than 1.8M Texans applied for unemployment insurance, which is more than in all of 2019. DFW Area: t/ 8.4% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for June decreased to 8.4% (preliminary) when compared to 12.3% in May 2020. Following the 2008 financial crisis, the DFW area unemployment average was just under 8% in 2009 and 2010. FINANCIAL ACTIVITY 10 0 .10 -20 -30 -40 Jul 2017 Jaya 2018 Jul 2018 Jaw? 2014 Jul 2010 Jaws 2020 Jut 2020 City of Southlake Monthly Financial Report 2 8/13/2020 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2020 FY 2020 FY 2020 FY 2020 REVENUE FY 2020 EXPENDITURE —d-2019 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 1,222,686 $ 2,363,689 $ (1,141,003) $14,000,000 Nov $ 2,040,190 $ 3,573,571 $ (1,533,381) Dec $ 11,056,112 $ 2,902,978 $ 8,153,134 $12,000,000 Jan $ 12,177,688 $ 4,005,943 $ 8,171,745 Feb $ 7,400,320 $ 3,154,520 $ 4,245,800 $10,000,000 Mar $ 2,160,861 $ 3,200,484 $ (1,039,623) Apr $ 1,395,998 $ 2,911,352 $ (1,515,354) $8000,000 May $ 2,217,994 $ 3,010,577 $ (792,583) $6,000,000 Jun $ 1,768,401 $ 3,001,062 $ (1,232,661) Jul $ 245,720 $ 3,010,577 $ (2,764,857) $4,000,000 Aug $ - $ - $ Sep $ $2,000,000 Tot $ 41,685,970 $ 31,134,753 $ 10,551,217 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK:T POSITIVE The outlook for the year was positive for the reporting period ending July 31, 2020. However in the current environment with COVID -19, the executive team will continue to closely monitor and adjust financial forecast accordingly. REVENUE ANALYSIS GENERAL FUND SALES TAX 2020-2018 COMPARISON FY 2020 FY 2019 FY 2018 � FY 2020 — FY 2019 FY 2018 Oct $ 1,278,635 $ 1,253,417 $ 1,214,148 $2,500,000 Nov $ 1,309,584 $ 1,140,440 $ 1,272,500 Dec $ 1,993,686 $ 1,613,337 $ 1,744,684 Jan $ 1,360,873 $ 1,030,047 $ 1,135,430 $2,000,000 $ 1,011,429 $ 1,094,354 $ 1,055,400 Pap Mar $ 1,162,936 $ 1,321,691 $ 1,251,079 $1,500,000 Apr May Jun $ 1,038,287 $ 1,153,263 $ 1,375,636 $ 1,294,023 $ 1,295,321 $ 1,274,338 $ $ $ 1,096,365 1,363,921 1,292,089 $1,000,000 ` � Jul $ - $ 1,179,145 $ 1,206,050 Aug $ 1,344,868 $ 1,265,360 $500,000 Sep $ 1,354,327 $1,227,621 Tot $ 11,684,328 $ 15,195,307 $ 15,124,646 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE FY 2020 was off to a great start, year to date sales tax collections (sales from October 2019 through June 2020) are above the two previous years. FY 2020 collections are 3.25% and 2.26% above FY 2019 and 2018, respectively. Staff will continue to monitor collections closely. City of Southlake Monthly Financial Report 3 8/13/2020 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2020 FY 2019 FY 2018 ■ FY 2020 ■ FY 2019 FY 2018 Oct $ 790,236 $ 1,151,812 $ 217,086 $14,000,000 Nov $ 1,426,054 $ 1,552,708 $ 1,832,023 $12,000,000 Dec $ 9,161,119 $ 10,397,278 $ 6,601,683 $10,000,000 Jan $ 10,088,389 $ 9,985,201 $ 12,435,268 $8,000,000 Feb $ 4,237,797 $ 3,385,436 $ 3,744,931 Mar $ 420,930 $ 395,710 $ 196,116 $6,000,000 Apr $ 55,958 $ 156,647 $ 102,531 $4,000,000 May $ 105,567 $ - $ 99,690 $2,000,000 A Jun $ 448,670 $ 312,620 $ 426,191 $- Jul * $ (1,457,677) $ (1,295,201) $ (1,431,282) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun u Aug Aug $ - $ 59,318 $ - $(4,000,000) Sep $ $ 46,464 $ 137,747 Tot $ 25,277,043 $ 26,147,993 $ 24,361,984 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund 2020 YTD property tax collections ($25,277,043) are approximately 2.94% lower than 2019 YTD ($26,042,211) as of July. The tax rate reduction from .447 to .41 per $100 is the primary reason for the reduction in revenue. As indicated on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year. PERMIT REVENUE 2020-2018 COMPARISON FY 2020 FY 2019 FY 2018 � FY 2020 � FY 2019 -*-FY 2018 Oct Nov $ 134,067 $ 238,528 $ 85,534 $ 126,131 $ 75,588 $ 145,755 $700,000 Dec $ 135,168 $ 160,859 $ 87,701 $600,000 Jan $ 204,931 $ 121,526 $ 126,075 Feb $ 212,195 $ 121,533 $ 199,087 $500,000 - Mar $ 126,842 $ 186,152 $ 229,059 Apr $ 188,968 $ 111,970 $ 126,788 $400,000 May $ 128,791 $ 601,621 $ 98,364 Jun $ 148,103 $ 111,503 $ 162,515 $300,000 - Jul $ 152,920 $ 163,760 $ 168,508 Aug $ - $ 155,328 $ 185,552 $200,000 Sep $ 474,884 $ 223,441 $100,000 Tot $ 1,670,513 $ 2,370,258 $ 1,878,976 CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($94.2M+) issued for FY 2020 YTD is approximately 25.7% and 38.7% lower when compared to FY 2019 and FY 2018 respectively. However, total permit revenue as of July 31, 2020 is 4.0% higher than FY 2019 and 13.6% less than FY 2018 revenue. City of Southlake Monthly Financial Report 4 8/13/2020 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2020 YTD FY 2019 YTD FY 2019/2020 YTD (JULY) (JULY) FY 2020 BUDGET VARIANCE BUDGET VARIANCE FY 2020 %SPENT CMO $ 827,792 $ 766,664 $ 1,034,611 $ (61,128) $ 206,819 80.01% COMM $ 356,656 $ 335,352 $ 486,472 $ (21,304) $ 129,816 73.31% CS $ 4,236,977 $ 4,515,674 $ 6,076,456 $ 278,697 $ 1,839,479 69.73% CSO $ 386,468 $ 365,203 $ 527,181 $ (21,265) $ 140,713 73.31% DPS $ 14,398,505 $ 13,805,262 $ 18,451,018 $ (593,243) $ 4,052,513 78.04% ED $ 107,570 $ 97,823 $ 154,872 $ (9,747) $ 47,302 69.46% FIN $ 1,831,883 $ 1,881,509 $ 2,509,163 $ 49,626 $ 677,280 73.01% HR $ 637,115 $ 613,226 $ 866,157 $ (23,889) $ 229,042 73.56% IT $ 2,090,059 $ 1,754,917 $ 2,858,866 $ (335,142) $ 768,807 73.11% PDS $ 1,719,440 $ 1,690,687 $ 2,293,889 $ (28,753) $ 574,449 74.96% PW $ 3,634,645 $ 3,482,425 $ 4,846,636 $ (152,220) $ 1,211,991 74.99% SS $ 1,342,098 $ 994,233 $ 1,781,845 $ (347,865) $ 439,747 75.32% Totals $ 31,569,208 $ 30,302,975 $ 41,887,166 $ (1,266,233) $ 10,317,958 75.37% FY 2020 YTD (JULY) FY 2019 YTD (JULY) FY 2020 BUDGET $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated on the chart the 2020 expenditures are higher when comparable to 2019 expenditures for the same period with an increase of 4.18% primarily due to approved public safety pay plan adjustments and true - up of IT investments. Overall fund expenditures are trending below budget. City of Southlake Monthly Financial Report 5 8/13/2020 HilitopSecurities Asset Management - City of Southlake Investment Portfolio Summary CITY OF SOUTHLAKE L01 For the Quarter Ended June 30, 2020 Prepared by HilltopSecurities Asset Management J�* HilltopSecurities Asset Management, 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 2020: Last month in our summary for May we wrote, "Phrases such as the "steepest decline ever" and the "worst in history" will apply to almost every piece of April economic data." The opposite will be true for June as the economic reopening that started in May resulted in significant rebounds that in many cases were the "biggest gain in history." We would, however, caution readers not to put too much stock into the big jumps in the monthly data as things had gotten so bad in April and May they just had to get better. And, despite the improvement evident in much of the economic data, we are nowhere near the levels that prevailed prior to the COVID-19 mandated shutdowns. The employment data is the most obvious place to start as non -farm payrolls grew by a stunning 2.5 million in May. The largest monthly gain in the history of this series going back to 1939 wildly surpassed the consensus forecast for a loss of 7.5 million jobs, and yet was only a tenth of the 22 million jobs lost in March and April. The unemployment rate, expected to climb to 19%, actually declined to 13.3%. The ISM surveys perked up as well with the manufacturing index climbing from 41.5 to 43.1 and the non -manufacturing index from 41.8 to 45.4. While both readings still indicated contraction, the improvement was viewed as a signal that the worst was behind us. Auto sales also topped expectations, rebounding from April's pitiful 8.6 million unit annual pace to 12.2 million. Consumer spending came roaring back in May, too, no doubt reflecting some pent up demand as consumers emerged en masse from the nationwide lockout and began spending at a furious pace. Sales surged +17.7% during May after a revised -14.7% April decline. Spending was brisk across all categories as it appears the government's response to the crisis has helped support consumer spending. Housing data for May was mixed as existing homes sales fell -9.7% to the lowest level since October 2010. However, since existing sales are measured at closing this data is more reflective of activity during March and April, when many buyers and sellers were in Iockdown. By contrast, new home sales are measured when the contracts are signed and they climbed 16.6% during May. The improving trend in economic data was countered in the later part of June by worrisome trends in COVID-19 data as states that had reopened to great fanfare around Memorial Day saw a dramatic surge in cases. Texas, Florida, and Arizona were hard hit, forcing renewed restrictions and closures as the Fourth of July holiday approached. Equity markets focused on the positives and extended their rally, with the Dow Jones Industrial Average climbing +1.7% and the S&P 500 gaining +1.8% in June. The Nasdaq composite rose a remarkable +6%, hit a new record high, and is up +12.1 % year-to-date as technology stocks have been a beneficiary of the stay at home economy. Bond markets were stable with slight declines of 1-2 basis points in yield across most tenors. The two-year T-note yield closed June at 0.15%, while both the three-year and five-year T-notes set record lows at 0.17% and 0.27% respectively on June 29th. The short end of the yield curve is likely to be anchored by Fed policy for years to come. All in all, it appears the recovery has begun in earnest, but it also appears likely that the path won't be smooth and the outlook is still very much dependent on the path of the virus. Page 2 of 15 J�* HilltopSecurities Asset Management_ For the Quarter Ended June 30, 2020 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 reporl 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: Sharen Jackson Name: Sharen Jackson Title: Chief Financial Officer Mary Morgan Name: Mary Morgan Title: Deputy Director of Finance Page 3 of 15 J�w HilltopSecurities Asset Management. Beginning Values as of 03/31120 Par Value Market Value Book Value Unrealized Gain /(Loss) Market Value % Weighted Avg. YTW Weighted Avg. YTM 168,867,802.19 169,555,695.79 168,947,335.12 608,360.67 100.36% 1.405% 1.405% ■ USTREAS 27% TEXSTAR 26% ■ TEXPOOL 10% ■ FHLB 7% ■ LONESTRGOV 7% LONESTRCRP 6% ■ Otherissuers 17% Total: 100% Ending Values as of 06130120 147,269,794.80 147,730,702.30 147,349,346.95 381,355.35 100.26% 0.881 % 0.881 % 60 % 50 % 40% 30 % 20% 10% 0% Overnight 2 - 90 Days 91 - 180 Days 6 - 12 Months 1 - 2 Years Weighted Average Days to Maturity: 89 City of Southlake Executive Summary As of 06/30/20 ■ AGCY BULLET 7% AGCY CALL 3% ■ CP 7% ■ LGIP 52% ■ MUNICIPAL 3% TREASURY 27% Total: 100% ■ A-1+ 10% AAA 90% Total: 100% Print Date: 7/30/2020 Print Time: 6:40 pm Page 1 of 1 Page 4 of 15 J�w HilltopSecurities Asset Management_ 2.80 2.40 2.00 1.60 1.20 0.80 0.40% 0.00% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 City of Southlake Benchmark Comparison As of 06/30/2020 f 1-YR CMT 3-MO CMT f 6-MO CMT -■- TEXPOOL f City of Southlake Note 1: CMT stands for Constant Maturity Treasury. This data is published in Federal Reserve Statistical Release HA 5 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: 7/30/2020 Print Time: 6:42 pm Page 1 of 1 Page 5 of 15 J�* HilltopSecurities Asset Management. City of Southlake Detail of Security Holdings As of 06/30/2020 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 Aw LNSTCRP LGIP LoneStar Corp O/N 9,116,776.97 100.000 9,116,776.97 9,116,776.97 100.000 9,116,776.97 1 0.560 0.560 LNSTGOV LGIP LoneStar Gov O/N 9,682,685.02 100.000 9,682,685.02 9,682,685.02 100.000 9,682,685.02 1 0.190 0.190 TEXPOOL LGIP TexPool 15,147,091.78 100.000 15,147,091.78 15,147,091.78 100.000 15,147,091.78 1 0.216 0.216 TEXSTAR LGIP TexSTAR 38,015,752.50 100.000 38,015,752.50 38,015,752.50 100.000 38,015,752.50 1 0.197 0.197 TXCLASS LGIP Texas CLASS 5,307,488.53 100.000 5,307,488.53 5,307,488.53 100.000 5,307,488.53 1 0.590 0.590 07287CGUO 05/21/20 CP - DISC Baylor Scott & White 07/28/20 5,000,000.00 99.962 4,998,111.11 4,999,250.00 99.989 4,999,428.50 28 0.200 0.200 882724PY7 03/23/20 MUNICIPAL State of TX 4.000 08/27/20 5,000,000.00 100.439 5,021,950.00 5,007,969.10 100.586 5,029,300.00 58 2.922 2.922 78009AKD5 01/21/20 CP- DISC Royal Bank of Canada 10/13/20 5,000,000.00 98.729 4,936,455.56 4,975,155.55 99.961 4,998,031.50 105 1.742 1.742 9128282Z2 02/21/20 TREAS NOTE U.S. Treasury 1.625 10/15/20 5,000,000.00 100.070 5,003,515.63 5,001,588.40 100.415 5,020,759.50 107 1.514 1.514 3130AHEM1 10/25/19 AGCY BULET FHLB 1.625 10/23/20 5,000,000.00 99.995 4,999,750.00 4,999,922.05 100.446 5,022,281.50 115 1.630 1.630 3130AHEM1 10/25/19 AGCY BULET FHLB 1.625 10/23/20 5,000,000.00 99.995 4,999,750.00 4,999,922.05 100.446 5,022,281.50 115 1.630 1.630 9128283G3 05/31/19 TREAS NOTE U.S. Treasury 1.750 11/15/20 5,000,000.00 99.398 4,969,921.88 4,992,237.40 100.578 5,028,906.50 138 2.172 2.172 9128283G3 02/21/20 TREAS NOTE U.S. Treasury 1.750 11/15/20 5,000,000.00 100.168 5,008,398.44 5,004,306.90 100.578 5,028,906.50 138 1.517 1.517 91282831-2 01/17/20 TREAS NOTE U.S. Treasury 1.875 12/15/20 5,000,000.00 100.250 5,012,500.00 5,006,303.05 100.789 5,039,453.00 168 1.597 1.597 9128283Q1 02/21/20 TREAS NOTE U.S. Treasury 2.000 01/15/21 5,000,000.00 100.445 5,022,265.63 5,013,394.25 100.988 5,049,414.00 199 1.498 1.498 9128283X6 02/21/20 TREAS NOTE U.S. Treasury 2.250 02/15/21 5,000,000.00 100.746 5,037,304.69 5,023,707.00 101.313 5,065,625.00 230 1.483 1.483 9128284B3 02/21/20 TREAS NOTE U.S. Treasury 2.375 03/15/21 5,000,000.00 100.945 5,047,265.63 5,031,488.10 101.551 5,077,539.00 258 1.475 1.475 912828C57 01/17/20 TREAS NOTE U.S. Treasury 2.250 03/31/21 5,000,000.00 100.777 5,038,867.19 5,024,308.30 101.570 5,078,515.50 274 1.594 1.594 3134GVKS6 04/17/20 AGCY CALL FHLMC 0.800 04/20/22 10/20/2020 QRTLY 5,000,000.00 100.000 5,000,000.00 5,000,000.00 100.009 5,000,465.50 659 112 0.800 0.800 Total for General Operating 147,269,794.80 100.066 147,365,850.56 147,349,346.95 100.314 147,730,702.30 89 0.881 0.881 Total for City of Southlake 147,269,794.80 100.066 147,365,850.56 147,349,346.95 100.314 147,730,702.30 89 0.881 0.881 Print Date: 7/30/2020 Print Time: 6:42 pm Page 1 of 1 Page 6 of 15 J�w HilltopSecurities Asset Management. City of Southlake Change in Value From 0313112020 to 06/30/2020 CUSIP Security Type Security Description 03/31120 Cost of Maturities / Amortization I Realized 06/30120 03/31120 06/30120 Change in Book Value Purchases Calls 1 Sales Accretion Gain/(Loss) Book Value Market Value Market Value Mkt Value Community Enhancement Dev Co� TEXPOOL LGIP TexPool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total for Community Enhancement Dev Corp Crime Control District TEXSTAR LGIP TexSTAR 0.00 4,186,921.72 0.00 2,399.64 0.00 (4,189,321.36) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,186,921.72 0.00 0.00 0.00 (4,186,921.72) Total for Crime Control District 4,186,921.72 2,399.64 (4,189,321.36) 0.00 0.00 0.00 4,186,921.72 0.00 (4,186,921.72) General Operating LNSTCRP LGIP LoneStar Corp O/N 1,113,855.59 8,002,921.38 0.00 0.00 0.00 9,116,776.97 1,113,855.59 9,116,776.97 8,002,921.38 LNSTGOV LGIP LoneStar Gov O/N 2,680,125.62 7,002,559.40 0.00 0.00 0.00 9,682,685.02 2,680,125.62 9,682,685.02 7,002,559.40 TEXPOOL LGIP TexPool 33,439,261.47 0.00 (18,292,169.69) 0.00 0.00 15,147,091.78 33,439,261.47 15,147,091.78 (18,292,169.69) TEXSTAR LGIP TexSTAR 29,293,163.39 8,722,589.11 0.00 0.00 0.00 38,015,752.50 29,293,163.39 38,015,752.50 8,722,589.11 TXCLASS LGIP Texas CLASS 5,296,746.17 10,742.36 0.00 0.00 0.00 5,307,488.53 5,296,746.17 5,307,488.53 10,742.36 19865BAG4 CP -INT Columbia Univ 2.000 05/13/20 5,000,000.00 0.00 (5,000,000.00) 0.00 0.00 0.00 5,006,600.00 0.00 (5,006,600.00) 07287CEMO CP - DISC Baylor Scott & White 0.000 05/21/20 4,993,055.55 0.00 (5,000,000.00) 6,944.45 0.00 0.00 4,990,706.50 0.00 (4,990,706.50) 3133EKMP8 AGCY BULET FFCB 2.310 05/28/20 4,999,880.45 0.00 (5,000,000.00) 119.55 0.00 0.00 5,019,838.00 0.00 (5,019,838.00) 30229AF46 CP - DISC Exxon Mobil 0.000 06/04/20 4,991,111.10 0.00 (5,000,000.00) 8,888.90 0.00 0.00 4,980,924.50 0.00 (4,980,924.50) 09657TGJ6 CP - INT Univ of NC 1.980 06/11/20 2,350,000.00 0.00 (2,350,000.00) 0.00 0.00 0.00 2,348,049.50 0.00 (2,348,049.50) 3135GOD75 AGCY BULET FNMA 1.500 06/22/20 5,987,278.08 0.00 (6,000,000.00) 12,721.92 0.00 0.00 6,016,602.60 0.00 (6,016,602.60) 07287CGUO CP - DISC Baylor Scott & White 0.000 07/28/20 0.00 4,998,111.11 0.00 1,138.89 0.00 4,999,250.00 0.00 4,999,428.50 4,999,428.50 882724PY7 MUNICIPAL State of TX 4.000 08/27/20 5,020,691.70 0.00 0.00 (12,722.60) 0.00 5,007,969.10 5,056,400.00 5,029,300.00 (27,100.00) 78009AKD5 CP - DISC Royal Bank of Canada 0.000 10/13/20 4,953,416.65 0.00 0.00 21,738.90 0.00 4,975,155.55 4,962,134.00 4,998,031.50 35,897.50 9128282Z2 TREAS NOTE U.S. Treasury 1.625 10/15/20 5,002,942.75 0.00 0.00 (1,354.35) 0.00 5,001,588.40 5,040,039.00 5,020,759.50 (19,279.50) 3130AHEM1 AGCY BULET FHLB 1.625 10/23/20 9,999,718.60 0.00 0.00 125.50 0.00 9,999,844.10 10,072,263.00 10,044,563.00 (27,700.00) 9128283G3 TREAS NOTE U.S. Treasury 1.750 11/15/20 9,994,234.60 0.00 0.00 2,309.70 0.00 9,996,544.30 10,102,344.00 10,057,813.00 (44,531.00) 91282831-2 TREAS NOTE U.S. Treasury 1.875 12/15/20 5,009,703.45 0.00 0.00 (3,400.40) 0.00 5,006,303.05 5,061,719.00 5,039,453.00 (22,266.00) 912828301 TREAS NOTE U.S. Treasury 2.000 01/15/21 5,019,556.80 0.00 0.00 (6,162.55) 0.00 5,013,394.25 5,075,000.00 5,049,414.00 (25,586.00) 9128283X6 TREAS NOTE U.S. Treasury 2.250 02/15/21 5,033,152.75 0.00 0.00 (9,445.75) 0.00 5,023,707.00 5,093,359.50 5,065,625.00 (27,734.50) 9128284133 TREAS NOTE U.S. Treasury 2.375 03/15/21 5,042,451.70 0.00 0.00 (10,963.60) 0.00 5,031,488.10 5,107,422.00 5,077,539.00 (29,883.00) 912828C57 TREAS NOTE U.S. Treasury 2.250 03/31/21 5,032,338.75 0.00 0.00 (8,030.45) 0.00 5,024,308.30 5,104,492.00 5,078,515.50 (25,976.50) 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 0.00 5,000,000.00 0.00 0.00 0.00 5,000,000.00 0.00 5,000,465.50 5,000,465.50 Print Date: 7/30/2020 Print Time: 6:42 pm Page 1 of 2 Page 7 of 15 City of Southlake J�w Change in Value H i I itopSecu ri ti es From 0313112020 to 06/30/2020 Asset Management. CUSIP Security Type Security Description 03/31/20 Cost of Maturities I Amortization 1 Realized 06/30/20 03/31/20 06/30/20 Change in Book Value Purchases Calls 1 Sales Accretion Gain/(Loss) Book Value Market Value Market Value Mkt Value Total for General Operating 160,252,685.17 33,736,923.36 (46,642,169.69) 1,908.11 0.00 147,349,346.95 160,861,045.84 147,730,702.30 (13,130,343.54) Parks Development Corporation TEXPOOL LGIP TexPool 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TEXSTAR LGIP TexSTAR 4,507,728.23 2,583.50 (4,510,311.73) 0.00 0.00 0.00 4,507,728.23 0.00 (4,507,728.23) Total for Parks Development Corporation 4,507,728.23 2,583.50 (4,510,311.73) 0.00 0.00 0.00 4,507,728.23 0.00 (4,507,728.23) Total for City of Southlake 168,947,335.12 33,741,906.50 (55,341,802.78) 1,908.11 0.00 147,349,346.95 169,555,695.79 147,730,702.30 (21,824,993.49) Print Date: 7/30/2020 Print Time: 6:42 pm Page 8 of 15 Page 2 of 2 J�* HilltopSecurities Asset Management, City of Southlake Earned Income From 03/31/2020 to 06/30/2020 CUSIP Security Type Security Description Beg. Accrued Interest Earned Interest Rec'd 1 Interest Purchased Ending Accrued Disc Accr 1 Net Income Sold / Matured Prem Amort Community Enhancement Dev Corp Total for Community Enhancement Dev Corp 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Crime Control District TEXSTAR LGIP TexSTAR 0.00 2,805.50 2,805.50 0.00 0.00 0.00 2,805.50 Total for Crime Control District 0.00 2,805.50 2,805.50 0.00 0.00 0.00 2,805.50 General Operating LNSTCRP LGIP LoneStar Corp O/N 0.00 2,921.38 2,921.38 0.00 0.00 0.00 2,921.38 LNSTGOV LGIP LoneStar Gov O/N 0.00 2,559.40 2,559.40 0.00 0.00 0.00 2,559.40 TEXPOOL LGIP TexPool 0.00 22,975.98 22,975.98 0.00 0.00 0.00 22,975.98 TEXSTAR LGIP TexSTAR 0.00 22,113.20 22,113.20 0.00 0.00 0.00 22,113.20 TXCLASS LGIP Texas CLASS 0.00 10,742.36 10,742.36 0.00 0.00 0.00 10,742.36 19865BAG4 CP - INT Columbia Univ 2.000 05/13/20 3,888.89 11,666.67 15,555.56 0.00 0.00 0.00 11,666.67 07287CEMO CP - DISC Baylor Scott & White 0.000 05/21/20 0.00 0.00 0.00 0.00 0.00 6,944.45 6,944.45 3133EKMP8 AGCY BULET FFCB 2.310 05/28/20 39,462.50 18,287.50 57,750.00 0.00 0.00 119.55 18,407.05 30229AF46 CP - DISC Exxon Mobil 0.000 06/04/20 0.00 0.00 0.00 0.00 0.00 8,888.90 8,888.90 09657TGJ6 CP - INT Univ of NC 1.980 06/11/20 25,462.25 8,645.82 34,108.07 0.00 0.00 0.00 8,645.82 3135GOD75 AGCY BULET FNMA 1.500 06/22/20 24,750.00 20,250.00 45,000.00 0.00 0.00 12,721.92 32,971.92 07287CGUO CP - DISC Baylor Scott & White 0.000 07/28/20 0.00 0.00 0.00 0.00 0.00 1,138.89 1,138.89 882724PY7 MUNICIPAL State of TX 4.000 08/27/20 114,754.10 49,726.77 0.00 0.00 164,480.87 (12,722.60) 37,004.17 78009AKD5 CP - DISC Royal Bank of Canada 0.000 10/13/20 0.00 0.00 0.00 0.00 0.00 21,738.90 21,738.90 9128282Z2 TREAS NOTE U.S. Treasury 1.625 10/15/20 37,517.08 20,201.50 40,625.00 0.00 17,093.58 (1,354.35) 18,847.15 3130AHEM1 AGCY BULET FHLB 1.625 10/23/20 71,319.44 40,625.00 81,250.00 0.00 30,694.44 125.50 40,750.50 9128283G3 TREAS NOTE U.S. Treasury 1.750 11/15/20 66,346.16 43,504.38 87,500.00 0.00 22,350.54 2,309.70 45,814.08 91282831-2 TREAS NOTE U.S. Treasury 1.875 12/15/20 27,663.93 23,309.43 46,875.00 0.00 4,098.36 (3,400.40) 19,909.03 9128283Q1 TREAS NOTE U.S. Treasury 2.000 01/15/21 21,153.85 25,000.00 0.00 0.00 46,153.85 (6,162.55) 18,837.45 9128283X6 TREAS NOTE U.S. Treasury 2.250 02/15/21 14,217.03 28,125.00 0.00 0.00 42,342.03 (9,445.75) 18,679.25 912828463 TREAS NOTE U.S. Treasury 2.375 03/15/21 5,485.73 29,364.81 0.00 0.00 34,850.54 (10,963.60) 18,401.21 91282BC57 TREAS NOTE U.S. Treasury 2.250 03/31/21 307.38 27,971.31 0.00 0.00 28,278.69 (8,030.45) 19,940.86 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 0.00 8,222.22 0.00 0.00 8,222.22 0.00 8,222.22 Print Date: 7/30/2020 Print Time: 6:42 pm Page 1 of 2 Page 9 of 15 J�w HilltopSecurities Asset Management. City of Southlake Earned Income From 03/31/2020 to 0613012020 CUSIP Security Type Security Description Beg. Accrued Interest Earned Interest Rec'd I Interest Purchased Ending Accrued Disc Accr 1 Net Income Sold 1 Matured Prem Amort Total for General Operating Parks Development Corporation TEXSTAR LGIP TexSTAR 452,328.34 0.00 416,212.73 3,020.46 469,975.95 3,020.46 0.00 0.00 398,565.12 0.00 1,908.11 0.00 418,120.84 3,020.46 Total for Parks Development Corporation 0.00 3,020.46 3,020.46 0.00 0.00 0.00 3,020.46 Total for City of Southlake 452,328.34 422,038.69 475,801.91 0.00 398,565.12 1,908.11 423,946.80 Print Date: 7/30/2020 Print Time: 6:42 pm Page 2 of 2 Page 10 of 15 J�* HilltopSecurities Asset Management_ City of Southlake Investment Transactions From 0410112020 to 06/30/2020 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 Maturities 05/13120 05/13/20 19865BAG4 CP - INT Columbia Univ 2.000 05/13/20 5,000,000.00 100.000 5,000,000.00 15,555.56 5,015,555.56 2.000 05/21120 05/21/20 07287CEMO CP - DISC Baylor Scott & White 05/21/20 5,000,000.00 100.000 5,000,000.00 0.00 5,000,000.00 1.002 05/28120 05/28/20 3133EKMP8 AGCY BILLET FFCB 2.310 05/28/20 5,000,000.00 100.000 5,000,000.00 0.00 5,000,000.00 2.325 06/04120 06/04/20 30229AF46 CP - DISC Exxon Mobil 06/04/20 5,000,000.00 100.000 5,000,000.00 0.00 5,000,000.00 1.002 06/11/20 06/11/20 09657TGJ6 CP -INT UnivofNC 1.980 06/11/20 2,350,000.00 100.000 2,350,000.00 34,108.07 2,384,108.07 1.980 06/22/20 06/22/20 3135GOD75 AGCY BILLET FNMA 1.500 06/22/20 6,000,000.00 100.000 6,000,000.00 0.00 6,000,000.00 2.454 Total for: Maturities 28,350,000.00 28,350,000.00 49,663.63 28,399,663.63 1.800 Purchases 04/09/20 04/17/20 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 10/20/20 5,000,000.00 100.000 5,000,000.00 0.00 5,000,000.00 0.800 0.800 05/21/20 05/21/20 07287CGUO CP - DISC Baylor Scott &White 07/28/20 5,000,000.00 99.962 4,998,111.11 0.00 4,998,111.11 0.200 0.200 Total for: Purchases 10,000,000.00 9,998,111.11 0.00 9,998,111.11 0.500 0.500 Income Payments 04/15/20 04/15/20 9128282Z2 TREAS NOTE U.S. Treasury 1.625 10/15/20 0.00 40,625.00 40,625.00 04/20/20 04/20/20 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 0.00 333.33 333.33 04/20/20 04/20/20 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 0.00 (333.33) (333.33) 04/23/20 04/23/20 3130AHEM1 AGCY BILLET FHLB 1.625 10/23/20 0.00 40,625.00 40,625.00 04/23/20 04/23/20 3130AHEM1 AGCY BILLET FHLB 1.625 10/23/20 0.00 40,625.00 40,625.00 05/15/20 05/15/20 9128283G3 TREAS NOTE U.S. Treasury 1.750 11/15/20 0.00 43,750.00 43,750.00 05/15/20 05/15/20 9128283G3 TREAS NOTE U.S. Treasury 1.750 11/15/20 0.00 43,750.00 43,750.00 05/28120 05/28120 3133EKMP8 AGCY BILLET FFCB 2.310 05/28/20 0.00 57,750.00 57,750.00 06/15/20 06/15/20 91282831-2 TREAS NOTE U.S. Treasury 1.875 12/15/20 0.00 46,875.00 46,875.00 06/22120 06/22/20 3135GOD75 AGCY BILLET FNMA 1.500 06/22/20 0.00 45,000.00 45,000.00 Total for: Income Payments 0.00 359,000.00 359,000.00 Print Date: 7/30/2020 Print Time: 6:42 pm Page 1 of 2 Page 11 of 15 J�* HilltopSecurities Asset Management_ City of Southlake Investment Transactions From 0410112020 to 06/30/2020 Trade Settle Security Principal Int Purchased / Realized Date Date CUSIP Type Security Description Coupon Mty Date Call Date Par Value Price Amount Received Total Amount Gain I Loss YTM YTW Transaction Type Quantity Total Amount Realized GIL YTM YTW Total Maturities 28,350,000.00 Total Purchases 10,000,000.00 Total Income Payments 0.00 28,399,663.63 1.800 9,998,111.11 0.500 359,000.00 0.500 Print Date: 7/30/2020 Print Time: 6:42 pm Page 12 of 15 Page 2 of 2 J�w HilltopSecurities Asset Management.. City of Southlake Amortization and Accretion From 0313112020 to 06/30/2020 Orig Amrt/Accr Total Amrt/Accr Remaining CUSIP Settle Date Security Type Security Description Next Call Date Purchase City Price Original Cost for Period Since Purch Disc / Prem Book Value General Operating 19865BAG4 03/19/20 CP - INT Columbia Univ 2.000 05/13/20 0.00 100.000 0.00 0.00 0.00 0.00 0.00 07287CEMO 03/12/20 CP - DISC Baylor Scott & White 0.000 05/21/20 0.00 99.806 0.00 6,944.45 0.00 0.00 0.00 3133EKMP8 05/31/19 AGCY BULET FFCB 2.310 05/28/20 0.00 99.985 0.00 119.55 0.00 0.00 0.00 30229AF46 03/11/20 CP - DISC Exxon Mobil 0.000 06/04/20 0.00 99.764 0.00 8,888.90 0.00 0.00 0.00 09657TGJ6 09/17/19 CP - INT Univ of NC 1.980 06/11/20 0.00 100.000 0.00 0.00 0.00 0,00 0.00 3135GOD75 04/23/19 AGCY BULET FNMA 1.500 06/22/20 0.00 98.911 0.00 12,721.92 0.00 0.00 0.00 07287CGUO 05/21/20 CP - DISC Baylor Scott &White 0.000 07/28/20 5,000,000.00 99.962 4,998,111.11 1,138.89 1,138.89 750.00 4,999,250.00 882724PY7 03/23/20 MUNICIPAL State of TX 4.000 08/27/20 5,000,000.00 100.439 5,021,950.00 (12,722.60) (13,980.90) (7,969.10) 5,007,969.10 78009AKD5 01/21/20 CP - DISC Royal Bank of Canada 0.000 10/13/20 5,000,000.00 98.729 4,936,455.56 21,738.90 38,699.99 24,844.45 4,975,155.55 9128282Z2 02/21/20 TREAS NOTE U.S. Treasury 1.625 10/15/20 5,000,000.00 100.070 5,003,515.63 (1,354.35) (1,927.23) (1,588.40) 5,001,588.40 3130AHEM1 10/25/19 AGCY BULET FHLB 1.625 10/23/20 10,000,000.00 99.995 9,999,500.00 125.50 344.10 155.90 9,999,844.10 9128283G3 05/31/19 TREAS NOTE U.S. Treasury 1.750 11/15/20 10,000,000.00 100.168 9,978,320.32 2,309.70 18,223.98 3,455.70 9,996,544.30 9128283L2 01/17/20 TREAS NOTE U.S. Treasury 1.875 12/15/20 5,000,000.00 100.250 5,012,500.00 (3,400.40) (6,196.95) (6,303.05) 5,006,303.05 9128283Q1 02/21/20 TREAS NOTE U.S. Treasury 2.000 01/15/21 5,000,000.00 100.445 5,022,265.63 (6,162.55) (8,871.38) (13,394.25) 5,013,394.25 9128283X6 02/21/20 TREAS NOTE U.S. Treasury 2.250 02/15/21 5,000,000.00 100.746 5,037,304.69 (9,445.75) (13,597.69) (23,707.00) 5,023,707.00 9128284B3 02/21/20 TREAS NOTE U.S. Treasury 2.375 03/15/21 5,000,000.00 100.945 5,047,265.63 (10,963.60) (15,777.53) (31,488.10) 5,031,488.10 912828C57 01/17/20 TREAS NOTE U.S. Treasury 2.250 03/31/21 5,000,000.00 100.777 5,038,867.19 (8,030.45) (14,558.89) (24,308.30) 5,024,308.30 3134GVKS6 04/17/20 AGCY CALL FHLMC 0.800 04/20/22 10/20/20 5,000,000.00 100.000 5,000,000.00 0.00 0.00 0.00 5,000,000.00 Total for General Operating 70,000,000.00 70,096,055.76 1,908.11 (16,503.61) (79,552.15) 70,079,552.15 Total for City of Southlake 70,000,000.00 70,096,055.76 1,908.11 (16,503.61) (79,552.15) 70,079,552.15 Print Date: 7/30/2020 Print Time: 6:43 pm Page 1 of 1 Page 13 of 15 J�* HilltopSecurities Asset Management. City of Southlake Projected Cash Flows Cash Flows for next 180 days from 06/30/2020 CUSIP Security Type Security Description Pay Date Interest Principal Total Amount General Operating 912828301 TREAS NOTE U.S. Treasury 2.000 01/15/21 07/15/20 50,000.00 0.00 50,000.00 07287CGUO CP - DISC Baylor Scott & White 0.000 07/28/20 07/28/20 0.00 5,000,000.00 5,000,000.00 9128283X6 TREAS NOTE U.S. Treasury 2.250 02/15/21 08/15/20 56,250.00 0.00 56,250.00 882724PY7 MUNICIPAL State of TX 4.000 08/27/20 08/27/20 200,000.00 5,000,000.00 5,200,000.00 9128284133 TREAS NOTE U.S. Treasury 2.375 03/15/21 09/15/20 59,375.00 0.00 59,375.00 912828C57 TREAS NOTE U.S. Treasury 2.250 03/31/21 09/30/20 56,250.00 0.00 56,250.00 78009AKD5 CP - DISC Royal Bank of Canada 0.000 10/13/20 10/13/20 0.00 5,000,000.00 5,000,000.00 9128282Z2 TREAS NOTE U.S. Treasury 1.625 10/15/20 10/15/20 40,625.00 5,000,000.00 5,040,625.00 3134GVKS6 AGCY CALL FHLMC 0.800 04/20/22 10/20/20 20,333.33 0.00 20,333.33 3130AHEM1 AGCY BULET FHLB 1.625 10/23/20 10/23/20 81,250.00 10,000,000.00 10,081,250.00 9128283G3 TREAS NOTE U.S. Treasury 1.750 11/15/20 11/15/20 87,500.00 10,000,000.00 10,087,500.00 91282831-2 TREAS NOTE U.S. Treasury 1.875 12/15/20 12/15/20 46,875.00 5,000,000.00 5,046,875.00 Total for General Operating 698,458.33 45,000,000.00 45,698,458.33 Print Date: 7/30/2020 Print Time: 6:43 pm Page 1 of 2 Page 14 of 15 J�* HilltopSecurities Asset Management. City of Southlake Projected Cash Flows Cash Flows for next 180 days from 06/30/2020 CUSIP Security Type Security Description Pay Date Interest Principal Total Amount July 2020 50,000.00 5,000,000.00 5,050,000.00 August 2020 256,250.00 5,000,000.00 5,256,250.00 September 2020 115,625.00 0.00 115,625.00 October 2020 142,208.33 20,000,000.00 20,142,208.33 November 2020 87,500.00 10,000,000.00 10,087,500.00 December 2020 46,875.00 5,000,000.00 5,046,875.00 Total Projected Cash Flows for City of Southlake 698,458.33 45,000,000.00 45,698,458.33 Print Date: 7/30/2020 Print Time: 6:43 pm Page 2 of 2 Page 15 of 15 6 EXPERIENC SOUTHL� July 28, 2020 The Marq Financial Review EXPERIENCE SOUTHLAKE M ARQ r66f Rev€nue Expense 1.69M 2.54M Champions Club �2.vas� r76,72 Revenue Expense 1.4BM 1.93M CEDC DASHBOARD Net Revenue: Current & Previous Year • CC1t • LHR — Previous Yea r 300K x nf- R1701,)W) i 11.71 AU Legends Hall 46.130% 5 4120' a Revenue Expense 205.44K 60031 K 39K 60K 541L 39K 39K 23K 42K 25K 222K 219K 209K 202K 212K 222K 217K 178K 68K 164K 5'1K 36K 107K 44K 34K 28K Jul Aug Sep Oct Nm Dec Jan Feb Mar Apr May Jun Jul 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 FY, Period 2020 (FY) + 10 [Period] CC MEMBERSHIP TRENDS 2800 2600 2574 2605 2400 2504 2527 250 2378 2418 2340 2360 2331 2327 227 2200 2000 2032 1800 1600 1400 1200 1000 2071 2019- 2019- 2019- 2019- 2019- 2019- 2019- 2019- 2020- 2020- 2020- 2020- 2020- 2020- 2020- 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 CC Membership Joins vs. Terminations, and Retention Rate (Month -to -Month) 450 100.0% 412 95.0% 400 371 90.0% 350 333 85.0% � Joins 300 30.0% Terminations Retention 73.0% Rate 250 224 201203 206 70.0% 200 187 189 164 157 65 0% 150 24 14 1 13 22 25 20 127 60.0% 12 02 5!i.0% 100 6 78 63 0 !)0.0% 50 4 25 45.0% 0 0 O, 40.0% Oh Oro O'1 Oo SP NO I: Nti O� O`1' OP + Oh OP O' 100 37 970 •400 .500 CC MEMBERSHIP JOINS VS TERMINATIONS BY MONTH & TYPE eAdult Pam Fam-NC a SIR o"youth 07 73 29 knp xt of 0Aid-19 I i d4, tiiernher6ps in ® {` _ . SGspuded us-34 , 'ryryry 4 .15 Joins Terms Joins Terms Joins Terms Joins Terms Joins Terms Joins Terms Joins Terms Joins Terms Joins Teas Joins Terms Oct'19 Nov'19 Dec'19 Jan'20 FeG'20 Mar'20 Apr-20 Mtay20 Jun-20 Jul•20 EXPERIENCE SOUTHLAI<,,..,E