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2009-04-21 CC Packet CITY OF SOUTHLAKE TEXAS REGULAR CITY COUNCIL MEETING: APRIL 21, 2009 LOCATION: 1400 Main Street, Southlake, Texas 76092 Council Chambers in Town Hall WORK SESSION: 5:00 P.M. 1. Call to order. 2. Invocation: Betsy Godbold, Chaplain of the Month 3. Proclamation for Administrative Professionals Week 2009 4. Development Activity Report presentation 5. COPS Code Enforcement Program presentation 6. Discuss all items on tonight's meeting agenda. No action will be taken and each item will be considered during the Regular Session. REGULAR SESSION: 6:00 P.M. or immediately following the work session rhlkor 1. Call to order. 2. A. Executive Session: Pursuant to the Open Meetings Act, Chapter 551, Texas Government Code, Sections 551.071, 551.072, 551.073, 551.074, 551.076, 551.087, 418.183(f), and 418.106(d) & (e). Refer to posted list attached hereto and incorporated herein. Executive Session may be held, under these exceptions, at the end of the Regular Session or at any time during the meeting that a need arises for the City Council to seek advice from the City Attorney as to the posted subject matter of this City Council meeting. 1. Section 551.072: Deliberation regarding real property a. Discuss the potential purchase or lease of real property for city facilities. 2. Section 551.087: Deliberation regarding economic development negotiations a. Economic incentives for businesses. B. Reconvene: Action necessary on items discussed in Executive Session. 3. REPORTS: A. Mayor's Report LI. Update of upcoming meetings and events sew City of Southlake values: Integrity• Innovation • Accountability♦ Commitment to Excellence ♦ Teamwork I • City of Southlake City Council meeting agenda April 21,2009 Page 2 of 7 If �.. 2. Presentation of rebate check by Clear Results and Oncor for implementation of energy savings initiatives. 3. Southlake DPS Citizen's Association (SDCA) recognition 4. Other recognitions B. City Manager's Report 1. Financial Report— FY2009 Budget Report 2. Bob Jones Nature Center and Preserve Master Plan kickoff CONSENT AGENDA: All items listed below are considered to be routine by the City Council and will be enacted with one motion. There will be no separate discussion of items unless a Councilmember or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. 4. Consent: A. Approve minutes from the April 7, 2009 regular City Council meeting. B. Approve a Professional Services Agreement with Lee Lewis Construction, Inc. as Construction Manager at Risk for the DPS North Training Facility. C. Approve a Community Services Agreement with the Southlake DPS Citizen Academy Alumni Association. D. Resolution No. 09-020, Giving support of and partnership with the 2010 Census. E. Award of construction contract for the Dove Road intersection and drainage improvements to Quality Excavation, Ltd. in the amount of $2,983,435.26 and authorize construction phase contingencies. F. ZA08-089, Plat Revision for Lot 1 R, Block 1, Mendez Addition being a revision of Lot 1, Block 1, Mendez Addition and being located at 910 East Southlake Boulevard. Current Zoning: S-P-1 — Detailed Site Plan District. Requested Zoning: S-P-1 — Detailed Site Plan District. SPIN Neighborhood #10. G. Ordinance No. 480-579, 1st Reading (ZA08-062), Zoning Change and Concept Plan for 520 South White Chapel Boulevard on property being described as Tract 3E, Hiram Granberry Survey, Abstract No. 581 and being located at 520 South White Chapel Boulevard. Current Zoning: AG - Agricultural District. Requested Zoning: SF-20A - Single Family Residential District. SPIN Neighborhood #14. THIS ITEM HAS BEEN TABLED TO THE MAY 5, 2009 CITY COUNCIL MEETING. City of Southlake values: Integrity♦ Innovation •Accountability♦ Commitment to Excellence ♦ Teamwork C • City of Southlake City Council meeting agenda April 21,2009 Page 3 of 7 4av REGULAR AGENDA: 5. Public Forum. (The Public Forum will not begin prior to 7:00 p.m.) 6. Ordinances, second readings, public hearings, and related items: A. Ordinance No. 662-D, 2nd Reading, Revise the Drought Contingency Plan. PUBLIC HEARING B. Ordinance No. 895-B, 2nd Reading, Revise the Water Conservation Plan. PUBLIC HEARING C. Ordinance No. 953, 2nd Reading, Adopt Illicit Discharge Ordinance. PUBLIC HEARING D. Approve Ordinance No. 598-C, 2nd Reading, and related exhibits, revising aspects of the Southlake Program for the Involvement of Neighborhoods (SPIN) and replacing Ordinance No. 598-B. PUBLIC HEARING E. Resolution No. 09-021, Appoint members to the SPIN Standing g Committee. F. Ordinance No. 955, Authorizingthe issuance of "Cityof Southlake,�,,,,, Texas, tax and waterworks and sewer system (limited pledge) revenue certificates of obligation, Series 2009"; specifying the terms and features of said certificates; providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a limited pledge of the net revenues from the operation of the City's Waterworks and Sewer System; and resolving other matters incident and relating to the issuance, payment, security, sale and delivery of said Certificates, including the approval and execution of a Paying Agent/Registrar Agreement and a Purchase Agreement and the approval and distribution of an Official Statement; and providing an effective date. PUBLIC HEARING 7. Ordinances, first readings, and related items: A. This item was intentionally left blank. B. Ordinance No. 480-582, 1st Reading (ZA08-091), Zoning Change and Concept Plan for Glosser Addition on property being described as Tracts 3B and 3B1, J. Childress Survey, Abstract No. 522 and being located at 1640 and 1680 North Peytonville Avenue. Current Zoning: AG — Agricultural District. Requested Zoning: SF-IA — Single Family Residential City of Southlake values: Integrity♦ Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork C • City of Southlake City Council meeting agenda April 21, 2009 Page 4 of 7 Lir District. SPIN Neighborhood #12. (If approved at first reading, the public hearing will be held May 5, 2009.) C. Ordinance No. 480-583, 1st Reading (ZA08-105), Zoning Change and Concept Plan for proposed Lot 29, F. Throop No. 1511 Addition being described as Tracts 1G1, 1 G, 1 V1, 1 V, F. Throop Survey, Abstract No. 1511 and being located at 1900 North Kimball Avenue. Current Zoning: AG — Agricultural District. Requested Zoning: SF-IA — Single Family Residential District. SPIN Neighborhood #6. (If approved at first reading, the public hearing will be held May 5, 2009.) D. Ordinance No. 480-522A, 1st Reading (ZA09-011), Zoning Change and Site Plan for Countryside White Chapel Office Park Lots 1 R1-1 R4 (formerly known as White Chapel Office Park, Phase II) on property being described as Lot 1, Block B, Ravenaux Village Addition and being located at 201 Countryside Court. Current Zoning: S-P-1 — Detailed Site Plan District. Requested Zoning: S-P-1 — Detailed Site Plan District. SPIN Neighborhood #11. (If approved at first reading, the public hearing will be held May 5, 2009.) E. Ordinance No. 480-WWW, 1st Reading, Amendment to the Comprehensive Zoning Ordinance No. 480, as amended, as it pertains to Solar Energy Systems. (If approved at first reading, the public hearing will be held May 5, 2009.) E F. Ordinance No. 480-YYY, 1st Reading, Amendment to the Comprehensive p Zoning Ordinance No. 480, as amended, as it pertains to On-Site Sewage Facility Plans. (If approved at first reading, the public hearing will be held May 5, 2009.) 8. Resolutions: (There are no items on this agenda.) 9. Other items for consideration: A. Consider SV09-003, Variance to the Sign Ordinance No. 704-C for Southlake Town Square Grand Opening sign. 10. Other items for discussion: (There are no items on this agenda.) 11. Meeting adjourned. I mo City of Southlake values: Integrity♦ Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork City of Southlake City Council meeting agenda April 21,2009 Page 5 of 7 CERTIFICATE I hereby certify that the above agenda was posted on the official bulletin boards at Town Hall, 1400 Main Street, Southlake, Texas, on Friday, April 17, 2009, by 6:00 p.m., pursuant to the Texas Government Code, Chapter 551. r`'�v ,,, ,,,, Lori Payne, TR C rn• 's City Secretary f. If you plan to attend thii,,pu 1in,@e1ing and have a disability that requires special needs, please advise the Cif9J'Set;1'etary's Office 48 hours in advance at 817-748-8016 and reasonable accommodations will be made to assist you. I lily LAw I I I I I I I City of Southlake values: Integrity• Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork IP I • City of Southlake City Council meeting agenda April 21,2009 Page 6 of 7 LAw I EXECUTIVE SESSION Section 551.071: Consultation with attorney The City Council may conduct a private consultation with its attorney when the City Council seeks the advice of its attorney concerning any item on this agenda, about pending and contemplated litigation, or a settlement offer, or on a matter in which the duty of the attorney to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551. This includes the following pending and/or contemplated litigation subjects: 1. James Lancaster and wife, Catherine Lancaster vs. Gary M. Gordon d/b/a Gordon Taylor Custom Homes, Carleo A. Capili and wife, Regina Capili and John R. Griggs and wife, Sally Griggs, Jill T. Gordon, and City of Southlake. July 2004. 2. Michael Kenny vs. City of Southlake. April 2008. 3. Jayson Steele vs. City of Southlake. August 2008. Section 551.072: Deliberation regarding real property The City Council may conduct a closed meeting to deliberate the purchase, exchange, lease or value of real property. Section 551.073: Deliberation regarding prospective gift or donation Nor The City Council may conduct a closed meeting to deliberate a negotiated contract for a prospective gift or donation to the City. Section 551.074: Deliberation 9 re ardin personnel matters g The City Council may deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of public officers, including the City Manager, City Secretary, City Attorney, Municipal Judge and city boards and commission members. A complete list of the city boards and commissions is on file in the City Secretary's Office. Section 551.076: Deliberation regarding security devices The City Council may deliberate the deployment, or specific occasions for implementation of security personnel or devices. Section 551.087: Deliberation regarding economic development negotiations The City Council may discuss or deliberate regarding commercial or financial information received from a business prospect that the city seeks to have locate, stay, or expand in or near the city and which the City is conducting economic development negotiations; or to deliberate the offer of a financial or other incentive to a business prospect as described above. City of Southlake values: Integrity♦ Innovation ♦ Accountability♦ Commitment to Excellence ♦ Teamwork City of Sout hlake City Council meeting agenda April 21, 2009 Page 7 of 7 Arme Section 418.183(f): Texas Disaster Act The City Council may deliberate information: 1) for purposes of preventing, investigating, or responding to an act of terrorism or related criminal activity and involving emergency response providers, their staffing, contact information and tactical plans; 2) that relates to the risk or vulnerability of persons or property, including infrastructure, to an act of terrorism; 3) that relates to the assembly of an explosive weapon, the location of a material that may be used in a chemical, biological or radioactive weapon, or unpublished information pertaining to vaccines or devices to detect biological agents or toxins; 4) that relates to details of the encryption codes or security keys for a public communication system; 5) that relates to a terrorism-related report to an agency of the United States; 6) that relates to technical details of particular vulnerabilities of critical infrastructure to an act of terrorism; 7) that relates to information regarding security measures or security systems intended to protect public and private property from an act of terrorism. The Texas Disaster Act specifically requires that a tape recording of the closed meeting be made. Section 418.106(d) & (e): Local meetings to discuss emergency management plans regarding pipeline safety The City Council may discuss emergency management plans involving pipeline safety and/or security of pipeline infrastructures or facilities when those plans or discussions Ititre contain such sensitive information. I I I I I I I Lw City of Southlake values: Integrity♦ Innovation • Accountability♦ Commitment to Excellence ♦ Teamwork Description City Council meeting - Terrell, Muller, Muzyka, Hill, Jones (arrived at , Stansell (Mayor absent) 4,••f Date 4/21/2009 Location Southlake Council Chambers I I I I I I It I I I I C I I C , City Council meeting -Terrell, Muller, Muzyka, Hill, Jones (arrived Southlake Council Chambers L Time Speaker Note 5:05:46 PM Mayor Pro Tern called the regular meeting to order ireJohn Terrell 5:07:04 PM Assistant City gave the invocation for the meeting Manager Jim Blagg I5:08:11 PM Mayor Pro Tern led the pledge of allegiance - Councilmember Greg Jones arrived I 5:08:28 PM *Mayor Pro Tern presented a proclamation for Administration Professionals Week 2009 5:10:20 PM Director Ken Baker made preliminary comments on work session item 4 and stated I that next Planner Clayton Comstock would give the details of the report 5:11:16 PM Planner Clayton presented the details of the development activity report and Comstock answered Council's questions 5:24:13 PM Laura Hill arrived 5:24:56 PM Comstock continued his presentation to Council I5:33:58 PM Council asked questions of staff 5:34:26 PM *Director Baker presented work session item 5 - COPS code enforcement I program 5:44:30 PM Council asked questions of staff 5:46:36 PM Terrell asked for a re-evaluation in 120 days to Council I 5:47:13 PM Terrell reviewed consent agenda items -4a, 4b, 4c, 4d, 4e, 4f, and to table item 4g to May 5 5:51:18 PM Terrell stated that item 9a will be the first item considered following the. I public forum 5:52:01 PM Terrell called for a executive session 5:52:19 PM Terrell breaked for executive session I 7:23:31 PM Terrell called the regular meeting back to order 7:23:53 PM Terrell presented upcoming meetings and events 7:24:29 PM ACM Ben Thatcher introduced item 2 under the Mayor's Report - David Gett from I Oncor presented a check to the City for participation in the City Smart program 7:31:07 PM Terrell introduced item 3 under the Mayor's Report I7:31:50 PM Muller commented on the various programs within the SDCA 7:34:45 PM Chief Robert Finn presented general information regarding the 4 main programs I within the SDCA organization, he specifically recognized Barbara Griggs, Anne Wise, and Dick McCauley 7:40:14 PM *Terrell asked members of the SDCA to come down to take a photo Iand receive certificates of appreciation 7:41:33 PM Terrell made other recognitions of good things going on with city employees, departments, and Best of the Best recognitions Ifrom the Southlake Journal L 41.- 4/21/2009 2 of 6 C i , , . City Council meeting - Terrell, Muller, Muzyka, Hill, Jones (arrived Southlake Council Chambers i Time Speaker Note 7:44:51 PM City Manager Shana introduced item 1 under the City Manager's Report and turned Yelverton the presentation over to Finance Director Sharen Jackson I .... • 7:46:01 PM Director Jackson presented an overall review of the FY2009 Budget Report - I outlined revenue accounts, expenditure, residential and commercial property projections, 2010 budget preparation I 7:59:45 PM Council asked questions and commented on the presentation 8:00:54 PM City Manager introduced the next item under the CM Report • Yelverton I 8:01:11 PM Director Chris presented item 2 under the CM Report- Bob Jones Nature Tribble Center and Preserve master plan 8:07:18 PM Council commented on the BJNC presentation and plans 8:08:04 PM Terrell stated that the consent agenda was discussed during the work session and asked for a motion 8:08:53 PM Muzyka motion to approve the consent agenda I8:08:55 PM Stansell second - approved consent agenda 6-0 8:09:31 PM public forum no one spoke • i. I 8:09:38 PM Terrell 8:10:00asked for consideration of item 9a to be held next 8:10:00 PM Planner Clayton presented item 9a to Council Comstock I 8:12:11 PM Applicants Carla presented this item and addressed Council's questions Chase and Tim ? of • I Southlake Town Square 8:14:53 PM Council discussed the request and commented to the applicants I • 8:22:05 PM Tim asked for a 30 day extension to look at a more permanent sign I 8:23:07 PM Director Baker said their current sign is approved until the end of May 8:23:54 PM Jones motion to table item 9a to the May 19 meeting 8:23:57 PM Hill second - tabled to May 19 I8:24:46 PM Director Bob Price presented items 6A, 6B, and 6C to Council 8:29:30 PM Council commented and asked questions on 6A, 6B or 6C I8:30:49 PM public hearing on 6A no one spoke 8:31:06 PM Jones motion to approve item 6A as presented on first reading I : 8:31:19 PM Hill second - approved 6A 6-0 8:31:37 PM public hearing on 6B no one spoke arr 4/21/2009 3 of 6 C El C ' , . City Council meeting - Terrell, Muller, Muzyka, Hill, Jones (arrived Southlake Council Chambers ITime Speaker Note 8:31:50 PM Jones motion to approve item 6b based on current and previous I...., presentations 8:32:02 PM Muller second - approved 6B 6-0 •8:32:16 PM public hearing no one spoke I 8:32:26 PM Jones motion to approve item 6C based on current and previous presentations 8:32:36 PM Muller second - approved 6C 6-0 I8:32:54 PM Assistant to City presented item 6D to Council and answered questions Manager Alison Ortowski I8:34:46 PM Council asked questions and commented on the ordinance 8:37:17 PM public hearing no one spoke C 8:37:36 PM Jones motion to approve item 6d as presented on first and second readings 8:37:50 PM Muzyka second - approved 6-0 I 8:38:50 PM Ortowski 8:39:54 PM Muzyka presented item 6e to Council motion to accept item 6e with members as proposed 8:40:03 PM Hill second - approved 6-0 I 8:40:58 PM Jim Sabonis with presented item 6f to Council First Southwest Company 8:47:39 PM Council asked questions and made comments kw 8:54:48 PM public hearing no one spoke • 8:55:21 PM Stansell motion to approve item 6f I8:55:39 PM Hill second - approved 6-0 8:56:17 PM Director Baker presented item 7b to Council I 9:01:47 PM Applicant Tom Matthews, 2875 presented this item to Council and answered questions •Exchange Blvd I 9:13:32 PM Council asked questions of applicant- status of large tract to the west, number of lots • 9:15:09 PM Terrell allowed the public to speak although it is not a public hearing I9:15:34 PM Terrell read through the comment cards of residents who do not wish to speak but are opposed •I 9:16:34 PM Terrell 9:16:45 PM Michael read the names of residents who wish to speak stated concern about drainage, showed photos - read a Bustamonte, 1501 statement of opposition from Dan and Sherrie Glazier, 2001 I Plantation Drive and 2003 Plantation Drive who own two homes on Plantation Drive 9:26:55 PM Ralph Niemergood, spoke in opposition 1 1305 Plantation Drive L 4op, 4/21/2009 4 of 6 1 - . C • , City Council meeting -Terrell, Muller, Muzyka, Hill, Jones (arrived Southlake Council Chambers ETime Speaker Note 9:38:30 PM Curt Fullmen deferred comments at this time although he is opposed 9:38:57 PM Connor Lam, 1280 spoke in opposition Post Oak Trail I9:45:15 PM Thomas Murphy, spoke in opposition 1303 Plantation I Drive 9:49:26 PM Terrell asked the city attorney to address the super-majority issue on • this item I 9:49:44 PM City Attorney Allen stated the super majority requirement doesn't apply in the case• Taylor because this property has a temporary of AG zoning on it I 9:51:18 PM Mr. Thomas read a comment card from Dan and Kellie Foster who are also opposed this item • 9:53:11 PM Dan Glazier was not present - Mr. Bustamonte read the Glazier's opposition I comments earlier 9:54:34 PM Council discussed this request and asked questions of staff and the • applicant I 9:56:10 PM Mr. Mathews answered questions, discussed a flag lot and reconfiguring the lots 10:11:37 PM Terrell called for an executive session I 10:19:54 PM Terrell reconvened the meeting i (kw 10:20:08 PM Council continued discussion of item 7b I 10:21:14 PM Terrell stated to the applicant that Council would like the newly proposed item to go back to the P&Z for consideration 10:23:23 PM Jones motion to remand item 7b back to the P&Z •I 10:23:59 PM Hill 10:24:23 PM Director Baker second - remanded back to P&Z 6-0 presented item 7c to Council 10:28:10 PM applicant Lester addressed Council on this item I Strait, 1900 North Kimball 10:29:42 PM City Manager addressed the issue of the interlocal agreement with Grapevine I Yelverton for water 10:31:20 PM Stansell motion to approve item 7c subject to the applicant connecting to an adequate water supply prior to a CO being approved and I 10:32:23 PM Jones subject to review second - approved 6-0 10:32:39 PM Director Baker presented item 7d to Council I 10:48:41 PM Applicant Wayne presented this item to Council and answered questions Lee, 1601 Regal Oaks I10:56:44 PM Director Baker addressed the tree preservation on the south property line 11:11:39 PM Director Price addressed drainage questions from Council I liblv 4/21/2009 5 of 6 C mi • City Council meeting - Terrell, Muller, Muzyka, Hill, Jones (arrived Southlake Council Chambers Time Speaker Note 11:15:36 PM ACM Jim Blagg Duncan Disposal will work with the individual property owners 4., to determine the size of dumpster and frequency of pick up 11:18:28 PM Lee would like an option to have a pedestrian bridge from this 11:20:19 PM Terrell property to the south property for garbage asked if applicant will look at additional mitigation required on the pecan trees 11:22:17 PM Lee 11:22:48 PM Terrell indicated that he was willing to do that said an approval on first reading is no indication 11:23:06 PM Stansell motion to approve specifically granting changes as set forth in staff report, granting variances as specified, subject to review, subject to receipt of a detailed mitigaton report detailing the trees in the drainage area with proper numbers 11:24:03 PM Jones second - approved 5-1 (Hill) 11:24:44 PM Terrell allowed the last person on the comment card to speak who waited for 11:24:50 PM John Mann is in the solar business for 10 years 11:26:01 PM Muller asked for pictures of solar panels from staf for next tme 11:27:35 PM Jones motion to table item 7e to next meeting II 1:27:45 PM Stansell 11:28:33 PM Jones second - tabled 6-0 motion to table item 7f lbw 11:28:35 PM Stansell second 5-1 (Jones) 11:29:00 PM Terrell adjourned meeting I I I I I I 4kw 4/21/2009 6 of 6 • i ,' 6000 WESTERN PLACE,SUITE 200 Taylor Olson Adkins Sralla Elam TELEPHONE:(817)332-2580 I-30 AT BRYANT-IRVIN ROAD L.L.P. TOLL FREE:(800)318-3400 FORT WORTH,TEXAS 76107-4654 FACSIMILE:(817)332-4740 EMAIL:TOASE@TOASE.COM Attorneys 4 Counselors WEBSITE:WWW.TOASE.COM L AP, IE.ALLEN TAYLOR,JR. ExT. 212 ata1lor@toase.com April 21, 2009 ICONFIDENTIAL ATTORNEY/CLIENT PRIVILEGE ICVIA HAND DELIVERY Mayor and City Councilmembers City of Southlake 1400 Main Street Southlake, Texas 76092 Re: Legality of Executive Session Posting irliir Dear Mayor and Councilmembers: You have asked our office to review the executive session posting for the April 21, 2009, regular city council meeting. It is my understanding that the following executive session has been posted for the requisite time: A. Executive Session: Pursuant to the Open Meetings Act, Chapter 551, Texas Government Code,Sections 551.071,551.072,551.073,551.074,551.076,551.087, 418.183(f), and 418.106(d) & (e). Refer to posted list attached hereto and incorporated herein. Executive Session may be held, under these exceptions, at the end of the Regular Session or at any time during the meeting that a need arises for the City Council to seek advice from the City Attorney as to the posted subject matter of this City Council meeting. 1. Section 551.072: Deliberation regarding real property IC a. Discuss the potential purchase of lease of real property for city facilities. 2. Section 551.087: Deliberation regarding economic development negotiations a. Economic incentives for businesses. If Section 551.071: Consultation with attorney L .,, The City Council may conduct a private consultation with its attorney when the City Council seeks the advice of its attorney concerning any item on this agenda, about pending and contemplated Li W:\Southlake\Letters\Mayor&CC Letters Vvlayor&CC.EAT.113.04-21-09wpd.wpd E • April 21, 2009 Page 2 Oaf litigation,or a settlement offer,or on a matter in which the duty of the attorney to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551. This includes the following pending and/or contemplated litigation subjects: 1. James Lancaster and wife, Catherine Lancaster vs. Gary M. Gordon d/b/a Gordon Taylor Custom Homes,Carleo A.Capili and wife,Regina Capili and John R.Griggs and wife,Sally Griggs, Jill T. Gordon, and City of Southlake. July 2004. 2. Michael Kenny vs. City of Southlake. April 2008. 3. Jayson Steele vs. City of Southlake. August 2008. Section 551.072: Deliberation regarding real property The City Council may conduct a closed meeting to deliberate the purchase,exchange,lease or value of real property. Section 551.073: Deliberation regarding prospective gift or donation The City Council may conduct a closed meeting to deliberate a negotiated contract for a prospective gift or donation to the City. Section 551.074: Deliberation regarding personnel matters The City Council may deliberate the appointment, employment, evaluation, reassignment, duties, discipline,or dismissal ofpublic officers,including the City Manager,City Secretary,City Attorney, Municipal Judge and some city boards and commission members. A complete list of the city boards and commissions is on file in the City Secretary's Office. Section 551.076: Deliberation regarding security devices The City Council may deliberate the deployment, or specific occasions for implementation of security personnel or devices. Section 551.087: Deliberation regarding economic development negotiations The City Council may discuss or deliberate regarding commercial or financial information received from a business prospect that the city seeks to have locate, stay, or expand in or near the city and which the City is conducting economic development negotiations; or to deliberate the offer of a financial or other incentive to a business prospect as described above. I W:\Southlake\Letters\Mayor&CC Letters\Mayor&CC.EAT.113.04-21-09wpd.wpd C April 21, 2009 Page 3 Section 418.183(f): Texas Disaster Act The City Council may deliberate information: 1) for purposes of preventing, investigating, or responding to an act of terrorism or related criminal activity and involving emergency response providers, their staffing, contact information and tactical plans; 2) that relates to the risk or vulnerability of persons or property, including infrastructure, to an act of terrorism; 3) that relates to the assembly of an explosive weapon, the location of a material that may be used in a chemical, biological or radioactive weapon, or unpublished information pertaining to vaccines or devices to detect biological agents or toxins; 4)that relates to details of the encryption codes or security keys for a public communication system; 5)that relates to a terrorism-related report to an agency of the United States;6)that relates to technical details of particular vulnerabilities of critical infrastructure to an act of terrorism;7)that relates to information regarding security measures or security systems intended to protect public and private property from an act of terrorism. The Texas Disaster Act specifically requires that a tape recording of the closed meeting be made. Section 418.106(d) & (e): Local meetings to discuss emergency management plans regarding pipeline safety The City Council may discuss emergency management plans involving pipeline safety and/or EU, security ofpipeline infrastructures or facilities when those plans or discussions contain such sensitive information. The purpose of this letter is to provide an opinion whether the city council may legally discuss the above-referenced topics in executive session. Based upon the guidelines we have previously supplied the city council, and subject to the discussion below, we conclude that all the posted items fall within an exception to the Open Meetings Act, Government Code, Chapter 551. Therefore,discussion on these matters may legally occur in closed session. In addition,this opinion extends to any legal advice given to the council in executive session. It is appropriate for the council to receive legal advice from our office about any of the above listed lawsuits or claims. Further, it is appropriate for the council to discuss in executive session the exchange, lease or value of real property under Section 551.072 if the city council reasonably believes that deliberation in open session would have a detrimental effect on the city's negotiations for that property. Additionally,it is appropriate for the council to deliberate in executive session a negotiated contract for a prospective gift or donation under Section 551.073 if the city council reasonably believes that deliberation in an open meeting would have a detrimental effect on the position of the city. Under Section 551.074,the city council may deliberate the appointment or employment of a city officer, or employee. Under Attorney General opinions rendered in different contexts, the W:\Southlake\Letters\Mayor&CC Letters Wayor&CC.EAT.113.04-21-09wpd.wpd C April 21, 2009 Page 4 gar Attorney General has concluded that personnel discussions under this section must pertain to an individual, rather than a class of employees. 111 Further, under Section 551.074, the city council may deliberate the appointment, employment,evaluation,reassignment,duties,discipline,or dismissal of a city officer,including the city manager and city secretary. If you have any additional questions or concerns, please feel free to contact our office. Sincerely, nn ' 9 E. Allen Taylor, . EAT/ds cc: Shana Yelverton City of Southlake 1400 Main Street Suite 460 Southlake, Texas 76092 Lori Payne City of Southlake 1400 Main Street Suite 270 Southlake, Texas 76092 I C I I C WA.SouthlakeLettersVMayor&CC Letters Vvlayor&CC.EAT.11 3.04-21-09wpd.wpd C uuthlake City Council meeting -) Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: Gt„1 o r G` VNE(ciao41) Date: tya i o Address: \3©� [G.•r-" t CYN Phone: f 4 I- 4 SD S I wish to share my views on an Agenda Item: Agenda Item# I will speak in SUPPORT of this item I will speak in OPPOSITION to this item !do not wish to speak, but please record my SUPPORT )(OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. Southlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular sess' n. Name: /1I ñ� /71 ZDate: ° 1 i, f cli 7 'F/ lcc ;Address: Phone: P1 I wish to share my views on an Agenda Item: Agenda Item#_ 7 6 &'/o r ' ' /t/ I will speak in SUPPORT of this item I ' speak in OPPOSITION to this item do not wish to speak, but please recor my SUPPORT OPPOSITION 1 I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. a Lima Limo llamas humstil boa 6111100 outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: 1.4c rnU're1\-, Date: 41"0)/` Address: 1303 P, .1/4'1 or\ or Phone: El (- L(oZ-0-2Q I wish to share my views on an Agenda Item: Agenda Item # /11,- I will speak in SUPPORT of this item I will speak in OPPOSITION to this item ',,/' I do not wish to speak. but please record my SUPPORT APPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. `.. `.. Lim Lime ihm.. Lm.. `. Wm.. ismoili ..mill bola J ,j - tuthlake City Council meeting .J Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: k 0.-A .....1a..ck:›0 f\ Date: 41 011 le): )a Tc/ t a k /. r • Phone: g l 7 q 1 ` /34L. Addre I wish to share my views on an Agenda Item: Agenda Item# ___7_6 __I will speak in SUPPORT of this item I will speak in OPPOSITION to this item VI do not wish to speak, but please rord my SUPPORT V OPPOSITION 1— LL 1 wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. 4. L. had r.J .J ..J J J J .. *3"outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: /f4'c P" ''7 i,(�'" Date: Vi/C9 Address: kAtV 7)1 T/eW L Tnt A K'/ Phone: W I wish to share my views on an Agenda Item: Agenda Item# I will speak in SUPPORT of this item I will speak in OPPOSITION to this item X I do not wish to speak, but please record my SUPPORT ,----"...-OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. ! 'PM-T/1 Name: ge,./1 Date: �/1l l 6-1 Address: 1;0 w" ""`e-ci- '�. Phone: Q I '7 31 0 J rn I wish to share my views on an Agenda Item: Agenda Item# / I will speak in SUPPORT of this item I will speak in OPPOSITION to this item XI do not wish to speak, but pleasc record my SUPPORT X OPPOSITION Ti Li I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. 11.0 limo lima 116. immi _ .� -,-nuthlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name:r /1 ti /6.s�- Date: 2 1Z �� 1 Address: iJ G/ Wit k lQ C Phone: 31 0 — ffei[1 ' I wish to share my views on an Agenda Item: Agenda Item# I will speak in SUPPORT of this item I will speak in OPPOSITION to this item I do not wish to speak,but please record my SUPPORT APPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note:To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. or UN/ %MN blow `... low �. .� ,_..r ,....E .....r .,... �"outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. �V \ Date: LI -z O ""Name: 0be r� l%�V Addre . OV 9L t w 4-4 �i r!W r t1 phone: 8(7 -3? ` - 8-773 I wish to share my views on an Agenda Item: Agenda Item# '7 Q I will speak in SUPPORT of this item l speak in OPPOSITION to this item I do not wish to speak,but please reco y SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note:To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. L. L. ,. J ... 1 4'outhlake City Council meeting � �• Public Comment Form (l Please print. Return completed form to City Secretary prior to start of regular session. Name: '6 41; i& 7-X AA N/F Date: O0/0 9 Address: /Sa/ /4A"7$/'O&J L ' 'di6. Phone: ,`? —3d6 ' Ll3le "II wish to share my views on an Agenda Item: Agenda Item# l j.3 I will speak in SUPPORT of this item I will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT OPPOSITION TI I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. `0uthlake CityCouncil meeting '� Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name. /%''Gi L , v5, Date: y o 6 /� Address: /50/ A/M./7g 77 Opt/ At 'e __ Phone: 7/f1 "36C < 4/.37e9 1 wish to share my views on an Agenda Item: Agenda Item# r/1g I will speak in SUPPORT of this item j( I will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT / OPPOSITION Li I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. Southlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: /6� r4C (2/ Date: 0//e27 Address: ! a t/f ,4777f 44; Phone: tf/7 GIs/ -iJ 2f Kwish to share my views on an Agenda Item: Agenda Item#— _Zg I speak in SUPPORT of this item Pi will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. ail SIMS Outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: O 4 z i iQ -- Date: �� 10-1 Address: I d 0 1 133 Pi,f'�'U" l T� ��I� 4)�� tt Phone: Xwish to share my views on an Agenda Item: Agenda Item#-76 I will speak in SUPPORT of this item r/I will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. AO Mr.=r alms `mil LIN.Er taw �.... l../ ...� ...� ....J ...J ...J �� Lrouthlake City Council meeting -J Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: l l �Lr Pc.4. ( 1 Vik42,0%..- Date: `I /zi ( oi Address: 'S OO PO5 t" aibr k T,'.lak, l Phone: 711... Z ti f- 177Z wish to share my views on an Agenda Item: , r if Agenda Item# 7� G (o5se4e 1 � idu I will speak in SUPPORT of this item X I will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. am `.O `■ L... `... Amor I...d V `Milli ...J ` A J ..J J ..a S outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. ,�lye� Z /9 /� Date: L/ `j> � Name: �/!/ / ' Address: /02 FW Art 69X"7;47/4/. Phone: cr;"/7- Ve-, /,i rl I wish to share my views on an Agenda Item: Agenda Item#___7_6 41e,,,,a,,, &.—eall-' I will speak in SUPPORT of this item VI will speak in OPPOSITION to this item I do not wish to speak. but please record my SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda • Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. `.. `.. LIMO Lim.- LEM. `_ �.1 ...J i ..J J J J outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: /j I-cv v"` Nos`(1-Q "I Date: � �b 1 P ) Address: I 36 5 �-F� 17 -13 ��� �i Phone: IIQ I wish to share my views on an Agenda Item: Agenda Item# 7 I will speak in SUPPORT of this item V I will speak in OPPOSITION to this item I do not wish to speak, but please record my SUPPORT OPPOSITION I� I wish to speak during Public Forum on an item not on tonight's agenda Topic: Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. outhlake City Council meeting Public Comment Form Please print. Return completed form to City Secretary prior to start of regular session. Name: 704 1t4/ / Date: 472 Address: 417 9i 5 �� el,"A G ✓L l y ,2‘A-` % Phone: S/7 y L q cr'c j i 1 wish to share my views on an Agenda Item: Agenda Item# I will speak in SUPPORT of this item I will speak in OPPOSITION to this item I do not wish to speak. but please record my SUPPORT OPPOSITION I wish to speak during Public Forum on an item not on tonight's agenda Topic: 1 ws 76, //« 7l Jy Note: To allow everyone an opportunity to be heard,please limit your comments to 3 minutes. rag inr‘ OM MB M MI OM MIN grin MN INN N M NM OM I,, um um i iYy' 1'li SOUTHLAKE Finance Department s u a rte rl y Review For the period ended Integrity March 31 2009 Innovation Accountability Cotnmitment to Excellence Teamwork I I 0 I 7 CITY 07 I I TEXAS I I Finance Department's i Qua rterly Review I For the period ended March 31 , 2009 1 1 I I I 1 City of Southlake I April 2009 I I L ,r„ Integrity ♦ Innovation • Accountability • Commitment to Excellence ♦ Teamwork r I 1 i 1... To: Shana Yelverton, City Manager Jim Blagg, Assistant City Manager i From: Sharen Jackson, Finance Director Re: Second Quarter IFY 2009 Financial Report Date: April 21, 2009 I I The finance department is pleased to submit a financial report for the second quarter of FY 2009 for the period ended March 31, 2009. This report contains financial statements for the City's operating funds, status reports of the Capital Projects and a report of the ICity's Investment portfolio. kw IGENERAL FUND REVENUES Property tax. In the General Fund, $15,507,937 of $15,847,240 or 97.9% of budgeted I 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 Ctaxes since 1982. Sales tax. Sales tax budgeted for Fiscal Year 2009 is $8,955,000. For FY 2009 second I C quarter (October through February) the City has collected $3,850,666 in sales tax. This is 4.7% or $173,001 above the projected amounts to date. The significant increase is due to i budget collections are net Grand Avenue 380 agreement and actual collections include i C100% of Grand Avenue collections sales tax. 1 Franchise fees. Franchise fees include amounts received for use of public rights of way I C from utility companies. To date the City has received $1,280,762 of $2,699,848 budgeted. FY 2009 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- p County pays their second semi-annual payment in July. Historically, Oncor made an annual payment in September but recently Oncor began making quarterly payments. Fines/Forfeitures. Revenues from Fines and Forfeitures are $429,501, which is 43.0% of L T the $1,000,000 budgeted. This revenue source depends on many variables, such as the I . number of citations issued, warrants issued and collected, plus the number of cases assigned to deferred adjudication. Citation volume is higher for second quarter FY 2009 compared to second quarter FY 2008. Citation volume is expected to remain 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 and Colleyville for participation in the Teen Court program. Revenues to date total $358,759, compared with $298,938 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. Permits/fees. Revenues from permits and fees are $614,960 or 44.2% of the budgeted ' amount of $1,392,750. This is less than $888,466 collected as of March 31, 2008. 36 residential permits have been issued to date compared to 79 issued in the prior fiscal year. The largest decrease in permits/fees revenue is due to the reduced number of residential tpermits and decreased value in commercial permits issued during the second quarter FY 2009. 9 and 6 commercial permits were issued for the second quarter March 31, 2009 ' and March 31, 2008, 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 $230,145 to date. Revenues from miscellaneous income will meet the $746,238 budgeted. IInterest income. Interest earnings to date total $137,114. It is anticipated that interest income will be slightly below budgeted amounts, staff will continue to monitor revenues and make the necessary budget amendments this summer during the budget process. GENERAL FUND EXPENDITURES I For the second quarter ended March 31, 2009 of the fiscal year, General Fund total expenditures are $14,765,933 or 46.6% of the $31,713,160 budget. A brief discussion of teach department will follow, providing a summary explanation of major expenditures trends. tGeneral government department. Department expenditures for the City Secretary's Office, Human Resources, City Manager's Office and Support Services total $2,760,735 which is 46.2% of budget. Personnel and legal services expenditures are on target with tbudget. Therefore it is anticipated that expenditures in General Government will be within the amount budgeted. Finance department. For the Finance, Municipal Court, Teen Court Divisions, total expenditures to date are $908,504 or 46.4% of the $1,959,270 budgeted. Personnel, operations and capital expenditures are within budget. • Public safety department. Total expenditures for Police Services, Fire Services, and .re Public Safety Support, are $6,431,944, which is 51.5% of the $12,486,768 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 and Public Works Administration. Expenditures to date are $1,386,020 or 47.6% of the $2,910,285 budgeted. Personnel, operations and capital expenditures are within budget. I Planning and development department. Total expenditures for Planning and building inspections are $946.978 or 45.5% of the $2,079,589 budgeted for the year. Expenditures in the Department are within budgeted. Economic development department. The department has expended $175,915, or 49.2% Iof the $357,302 budgeted for the year. Expenditures in the Department are within 1 budget. et. ICommunity services department. Total expenditures for Community Services, Parks and Recreation, and Library Services are $2,152,837 or 46.6% of the $5,938,877 I budgeted. Personnel expenditures are on target with budget. There is $259,240 allocated for contract landscape/mowing for parks and municipal sites with the majority of the mowing during the summer months, consequently minimal expenditures have been made on this line item. Many of the recreation programs are planned for the summer months, 'N therefore minimum expenditures for revenue-supported contract instructors have been spent through March. Expenditures in the Department are expected to be within budget I projections. II WATER AND SEWER ENTERPRISE FUND Revenues. As of March 31, 2009, the City has received $8,349,405 or 41.9% in ' revenues of the $19,948,000 estimated. This is higher when compared to $7,702,466 received through March of last year. The majority of revenue is received in the summer months. Total revenues for the year will most likely be within budget or slightly higher. IExpenses. The City has expended $1,341,927 or 10.7% of the $19,823,956 budgeted for personnel, operations, capital, and debt services. Of the total expenses, $1,243,389 has Ibeen paid to the City of Fort Worth for treated water. ESTORM WATER FUND I I 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 March 31, 2009, the City has received $618,305 or 50.9% in revenue 1 L -iw of the $1,215,000 estimated. 1 II d II Expenses. The City has expended $202,746 or 23.9% of the $847,989 budgeted for personnel and operations. $134,629 was expended for drainage materials. DEBT SERVICE FUND ' Revenues. The City has received $7,044,374 in current and delinquent property taxes through March 31, 2009. This fund pays the property tax supported debt requirements for the City. The first semi-annual payments were paid February 2009 totaling $6,764,245. SOUTHLAKE PARKS DEVELOPMENT CORPORATION (SPDC) Operating Fund. As of March 31, 2009, $1,896,597 in the 1/2 cent sales tax has been collected. SPDC sales tax receipts are 2.5%below estimates, or $50,078. ' CRIME CONTROL AND PREVENTION DISTRICT (CCPD) riTrOperating Fund. As of March 31, 2009, $1,873,658 in the 1/2 cent sales tax has been collected. Sales tax receipts are 3.1%below estimates, or $60,598. CPARK DEDICATION FEE FUND Revenues. The City has collected $6,056 of the $60,000 budgeted for the year. 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. Staff will continue to monitor revenues and make any necessary budget amendments this summer during the budget process. TAX INCREMENT FINANCIAL DISTRICT (TIF) I Revenues. To date TIF has not received any revenues for the fiscal year. Historically, the TIF revenues are not collected until the third quarter of the fiscal year. STRATEGIC INITIATIVE FUND Expenditures. As of March 31, 2009, the expenditures were $868,501 for a fire engine to replace Engine 403, and software conversion. I fr. J _ I 14" HOTEL OCCUPANCY FUND Revenues. The City has collected $282,350 or 43.7% in revenue of the $646,313 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 March 31, 2009, the expenditures were $55,339 for marketing and promotion. I 1 1 C C C I I I GENERAL FUND I Statement of Revenues,Expenditures and Changes in Fund Balance for the period ended March 31,2009 ell with comparative actual amounts for the period ended March 31,2008 (fiscal month 6-50.0%) I Percen. Year to Date 2009 Collectes Year to Date REVENUES 3/31/2009 Budget E .end 3/31/2008 Ad Valorem Taxes $15,507,937 $15,847,240 97.9% $14,311,890 I Sales Tax 3,662,251 8,955,000 40.9% 3,531,257 Franchise Fees 1,280,762 2,699,848 47.4°/ 988,608 Fines 429,501 1,000,000 43.0°% 394,265 I Charges for Services 358,759 912,686 39.3% 298,938 Permits/Fees 614,960 1,392,750 44.2°/ 888,466 Miscellaneous 230,145 746,238 30.8% 380,573 Interest Income 137,114 500,000 27.4% 171.304 I Total Revenues $22,221,429 $32,053,762 69.3% $20,965,301 EXPENDITURES City Secretary $165,168 $398,346 41.5% $143,869 I Human Resources 259,168 566,154 45.8% 197,593 City Manager 283,611 562,308 50.4°/ 258,965 Support Services 2,052,788 4,454.261 46.1% 1,462.490 I General Government Total 2,760,735 5,981,069 46.2% 2,062,417 Finance 549,404 1,162,978 47.2% 494,490 Municipal Court 303,664 670,163 45.3% 264,335 Municipal Court-Teen Court 55,436 126.129 44.0% 53.924 Ill Finance Total 7 812 908,504 1,959,270 46.4% , 49 Fire 2,391,908 5,201,831 46.0% 1,812 2 Police 2,577,816 5,405,817 47.7% 2,521,293 I Public Safety Support 1.462.220 1.879,120 77.8% 783,507 Public Safety Total 6,431,944 12,486.768 51.5% 5,208,002 Streets/Drainage 861,352 1,763,996 48.8°% 1,042,004 Public Works Administration 524.668 1,146.289 45.8% 481.725 I Public Works Total 1,386,020 2,910.285 47.6% 1,523,729 Building Inspections 457,940 1,057,610 43.3% 387,056 Planning 489.038 1.021.979 47.9% 392.898 I Planning and Dev Total 946,978 2,079.589 45.5% 779,954 Economic Development 175,915 357.302 49.2% 139.611 Economic Development Total 175,915 357,302 49.2% 139,611 Community Services 160,278 568,472 28.2% 138,167 I Parks and Recreation 1,668,310 4,728,851 35.3% 1,789,433 Library Services 324.249 64],554 50.5°/ 268.186 Community Services Total 2,152,837 5,938,877 36.2% 2,195,786 I Total Expenditures $14,762,933 $31,713,160 46.6% $12,722,748 Excess(deficiency)of Revenue over Expenditures $7,458,496 $340,602 $8,242,553 I OTHER FINANCING SOURCES AND(USES) Proceeds from Iease/CO(net) $0 $0 $0 Transfer In-Other Funds 0 424,465 0 I Transfer To-Other Funds 0 0 0 Total Other Sources/(Uses) $0 $424,465 $0 Excess(deficiency)of IQ Revenues/other sources over Exp. $7.458.496 $765,067 $8,242.553 FUND BALANCE OCT 1 $7,347,683 Change in reserved fund balance $0 ENDING FUND BALANCE $8,112.750 Ifund balance percentage 25.58% I WATER AND SEWER ENTERPRISE FUND I Comparative Statement of Revenues and Expenses for the period ended March 31,2009 and March 31,2008 (fiscal month 6-50.0%) ICIPercen Year to Date Collette Year to Date REVENUES 3/31/2009 Budget2009 Expende 3/31/08 I Water Sales-residential $4,023,917 $10,600,000 38.0°/ $3,644,554 Water Sales-commercial 1,413,809 3,400,000 41.6°/ 1,296,289 I Sewer Sales 2,221,048 4,100,000 54.2°/ 1,954,600 Sanitation Sales 536,374 1,100,000 48.8°/ 471,667 Other utility charges 33,062 342,000 9.7°/ 120,604 Miscellaneous 23,000 106,000 21.7°/ 112,234 I Interest Income 98.195 300.000 32.7°/ 102.518 Total Revenues S8,349,405 S19,948,000 41.9°/ $7,702,466 EXPENSES I Water Utility Billing $3,124,141 $10,494,144 29.8°/ $2,575,168 165,367 429,981 38.5°/ 475,936 Sewer 1,124,050 2,062,331 54.5°/ 1,012,112 Sanitation 215,635 862,970 25.0°/ 225,732 I Debt Service J 4.894.875 5.974.530 81.9°/ 4.386.789 Total Expenses $9,524,068 $19,823,956 48.0°/ $8,675,737 Excess(deficiency)of Revenue over Expenses ($1.174.663) $124.044 ($973.2711 IOTHER FINANCING SOURCES AND(USES) Transfer In-Other Funds $0 $0 Developer ContributionsIli $50,000 $50,000 $0 Transfer Out-Other Funds 0 (388.038) 0 Total Other Sources/(Uses) $50,000 ($338,038) $0 I Excess(deficiency)of Revenues and other sources over Expenses ($1.124.663) ($213.9941 ($973.2711 I I CITY OF SOUTHLAKE I1% SALES TAX REPORT IP 2009 Collected Budget Balance Budget to Date Balance Percent $ 8,755,000 $3,850,666 ($4,904.334) -56.02% IFISCAL FISCAL FISCAL YEAR % Inc YEAR % Inc YEAR % Inc MONTH 2007 -Dec 2008 -Dec 2009 -Dec I October 674,934 -27.7% 686,499 1.7% 789,287 15.0% November 619,509 19.0% 802,417 29.5% 771,761 -3.8% December 1,106,026 34.4% 1,174,260 6.2% 1,060,018 -9.7% 1 January February 559,469 11.9% 760,276 35.9% 591,513 -22.2% 611,242 28.1% 619,828 1.4% 638,087 2.9% March 804,752 9.7% 856,010 6.4% 0 -100.0% April 664,768 7.3% 749,508 12.7% 0 -100.0% 1 May 744,258 17.6% 787,336 5.8% 0 -100.0% June 828,321 -7.9% 917,099 10.7% 0 -100.0% July 715,342 40.3% 751,045 5.0% 0 -100.0% August 672,614 4.7% 657,387 -2.3% 0 -100.0% 1 September 810,258_ 4.8% 863,712 6.6% 0 -100.0% TOTAL $8,811,494 $9,625,378 $3,850,666 I Three Year Revenue Comparison by Month 1,200,000 le 1,000,000 1 � ,. i 800,000 , -- 600,000 I: I r I 400,000 200,000 I I I II 1 I I. I I I I I 11 0 j pg og p� o� o� r6 o) o� o°' �o� o°' o� O&. ,°, pea a/ 6C 1 Pie 4,a� �Jc �J PJc `,eg ❑FISCAL YEAR 2007 ■FISCAL YEAR 2008 IN FISCAL YEAR 2009 Actual Budget Actual Estimated (budget-est.) % Month 2008 2009 2009 2009 Difference Change October(*) $686,499 $624,422 $789,287 $ 789,287 $ 164,864 26.40% November(*) $802,417 $729,858 $771,761 $ 771,761 $ 41,903 5.74% December(*) $1,174,260 $1,068,077 $1,060,018 $ 1,060,018 $ (8,059) -0.75% January(*) $760,276 $691,528 $591,513 $ 591,513 $ (100,015) -14.46% February(*) $619,828 $563,780 $638,087 $ 638,087 $ 74,307 13.18% March(*) $856,010 $778,605 $0 $ 778,605 $ - 0.00% April(*) $749,508 $681,734 $0 $ 681,734 $ 0.00% May(*) $787,336 $716,141 $0 $ 716,141 $ - 0.00% June(*) $917,099 $834,170 $0 $ 834,170 $ - 0.00% July(*) $751,045 $683,132 $0 $ 683,132 $ 0.00% August(*) $657,387 $597,943 $0 $ 597,943 $ - 0.00% i tier September(*) $863,712 $785,611 $ 785,611 $ - 0.00% TOTAL $ 9,625,378 $ 8,755,000 $ 3,850,666 $ 8,928,001 $ 173,001 *Beginning April 2006 includes Grand Avenue sales tax collections per 380 agreement I80%of collections will be distributed to Cooper&Stebbins I I 111. SOUTHLAKE PARKS DEVELOPMENT CORPORATION 1/2% SALES TAX REPORT 2009 Collected Budget Balance I Budget to Date Balance Percent $ 4.634.228 $1.896,597 ($2.737.631) -59.07% I FISCAL FISCAL FISCAL YEAR %Inc YEAR %Inc YEAR %Inc MONTH 2007 -Dec 2008 -Dec 2009 -Dec October $332,430 -27.7% $338,127 1.7% $388,753 15.0% I November 305,131 19.0% 395,220 29.5% $380,121 -3.8% December 544,759 34.4% 578,367 6.2% $522,099 9.7% January 275,560 11.8% 374,464 35.9% $291,342 -22.2% February 301,059 28.1% 305,289 1.4% $314,282 2.9% March 396,371 9.7% 421,617 6.4% $0 -100.0% April 327,423 7.3% 369,161 12.7% $0 -100.0% May 366,575 17.6% 387,792 5.8% $0 -100.0% June 407,979 7.9% 451,705 10.7% $0 -100.0% I July 352,333 40.3% 369,918 5.0% $0 -100.0% August 331,288 4.7% 323,788 2.3% $0 -100.0% September 399,082 4.8% 425,411 6.6% $0 -100.0% I TOTAL $4,339,989 $4,740,858 $1,896,597 Three Year Revenue Comparison by Month le $600,000 f $500,000 i -I - "L $400,000e u $300,000 i ' iii r","i • { $200,000 I I 1 I II II II I $100,000 -^ $0 Oct:, Og 61) Oc' O�' O�' O°' O°' O�' O°' Oj' O§' O& �o4 oec )ate �e'� �a§' PQr �a1 �.§ Pic�� sec I10 FISCAL YEAR 2007 ■FISCAL YEAR 2008 ■FISCAL YEAR 2009 I Actual Budget Actual Estimated (budget-est.) % 2008 2009 2009 2009 Difference Change October $338,127 $330,522 $388,753 $ 388,753 $ 58,232 16.40% November $395,220 $386,331 $380,121 $ 380,121 $ (6,210) -1.91% December $578,367 $565,358 $522,099 $ 522,099 $ (43,260) -7.44% January $374,464 $366,042 $291,342 $ 291,342 $ (74,700) -25.39% February $305,289 $298,422 $314,282 $ 314,282 $ 15,860 4.93% March $421,617 $412,134 $0 $ 412,134 $ 0.00% April $369,161 $360,858 $0 $ 360,858 $ 0.00°io May $387,792 $379,070 $0 $ 379,070 $ - 0.00% 1 E June $451,705 $441,546 $0 $ 441,546 $ - 0.00% July $369,918 $361,598 $0 $ 361,598 $ 0.00% August $323,788 $316,505 $0 $ 316,505 $ 0.00% September $425.411 $415.842 $0 $ 415,842 $ - 0.00% 1 TOTALS $ 4,740,858 $ 4,634,228 $ 1,896,597 $ 4,584,150 $ (50,078) Fir 1 I SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT 1 1/2% SALES TAX REPORT 114) 2009 Collected Budget Balance Budget to Date Balance Percent $ 4,601.783 $1,873,658 (2,728,125) -59.28% 1 Fiscal Year Percent Fiscal Year Percent Fiscal Year Percent 2007 Increase/ 2008 Increase/ 2009 Increase/ MONTH Actual (Decrease) Actual (Decrease) Actual (Decrease) I October $304,276 -34.01% $334,143 9.82% $352,123 5.38% November 308,020 19.01% 376,231 22.14% 404,136 7.42% December 523,323 40.69% 536,434 2.51% 524,522 -2.22% January 290,761 18.11% 362,682 24.74% 291,077 -19.74% 1 February 301,199 27.64% 299,335 -0.62% 301,800 0.82% -10 March 382,088 13.60% 382,776 0.18% 0.00% April 311,411 2.68% 363,054 16.58% - -100.00% I May 359,218 14.26% 388,216 421,448 8.07% - -100.00% June 389,658 -7.73% 8.16% -100.00% July 348,010 36.36% 362,334 4.12% -100.00% August 329,686 5.96% 318,847 -3.29% - -100.00% I September 374,527 10.05% 395,781 5.67% 100.00% TOTAL $4,222,177 $4,541,281 $1,873,658 — Three Year Revenue Comparison I by Month $600,000 1410 $500,000 `w $400,000 — j 1. 11 _, Iii _ . I I ' . $200,000 . .1 • • i I I $0 OR) OR) O� O� O� cp poi �0 �0 O� O� O� I •IN Fiscal Year 2007 Actual 0 Fiscal Year 2008 Actual IIFiscal Year 2009 Actual I Actual Budget Actual Estimated (budget-est) 2008 2009 2009 2009 Difference Change October $ 334,143 $ 338,595 $ 352,123 $ 352,123 $ 13,528 4.00% I November $ 376,231 $ 381,243 $ 404,136 $ 404,136 $ 22,893 6.00% December $ 536,434 $ 543,581 $ 524,522 $ 524,522 $ (19,059) -3.51% January $ 362,682 $ 367,514 $ 291,077 $ 291,077 $ (76,437) -20.80% February $ 299,335 $ 303,323 $ 301,800 $ 301,800 $ (1,523) -0.50% I March $ 382,776 $ 387,876 $ - $ 387,876 $ 0.00% April $ 363,054 $ 367,891 $ $ 367,891 $ 0.00% May $ 388,216 $ 393,388 $ - $ 393,388 $ - 0.00% 1 IC June $ 421,448 $ 427,063 $ $ 427,063 $ - 0.00% July $ 362,334 $ 367,161 $ $ 367,161 $ - 0.00% August $ 318,847 $ 323,095 $ $ 323,095 $ 0.00% September $ 395,781 $ 401,054 $ - $ 401,054 $ - 0.00% I Illair. TOTAL $ 4,541,281 $ 4,601,783 $ 1,873,658 $ 4,541,185 $ (60,598) L. • r-i r- r-* r-91 s-• NM NM irl Ir, rig n ITN PM roll r , n I t CITY C)F SOUTHLAKE i Investment Portfolio Summary For the Quarter Ended March 31, 2009 Prepared By First Southwest Asset Management I No mi im Nob gm ova City of Southlake Quarterly Investment Report Investment.Officers' Certification For the Quarter Ended March 31,2009 This report is prepared for the City of Southlake(the "City") in accordance with Chapter 2256 of the 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 City's investment officers and includes the disclosures required in the PFIA. Market prices were obtained from independent pricing sources, including Interactive Data Corporation and Bloomberg L.P. The investment portfolio complied with the PFIA and the City'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 City and were made in full compliance with the PFIA and the City's approved Investment Policy. (VaNit 970c01-M/ First Southwest Asset Management Page 2 of 13 • NE is r--- no mg NIN me me I, agg an 111. City of SouthlaAe FIXED INCOME DISTRIBUTION March 31,2009 Summary Information Totals Weighted Averages Par Value 110,616,841.41 Average YTM 1.887 Market Value 11 1,420,536.41 Average Maturity (yrs) 0.7 Adjusted Cost 110,940,925.58 Average Coupon(%) 2.104 Net Gain/Loss 479,610.83 Average Duration 0.7 Annual Income 2,312,696.38 Number of Issues 28 Distribution by Maturity %Bond Average Average Average Maturity Number Mkt Value Iloldings Y T M Coupon Duration 0-3 Months 7 36,146,652.41 32.4 1.208 1.403% 0 035 3-6 Months 8 23,716,167.50 21.3 2.784 2.969% 0.409 6-9 Months 3 15,103,950.00 13.6 2.474 1.571% 0.618 9- 12 Months 2 6,040,625.00 5 4 1.064 1.760% 0.892 I-2 Years 6 22,319,217.50 20.0 1.657 2.395% 1.474 2-3 Years 2 8,093,924.00 7.3 2.628 3.150% 2.610 First Southwest Asset Management Page 3 of 13 rum r-- r"7 r-., r^+ r ir+ r r"'1 - w r- r m. rim rmi r , rim rag 1 City of Soutltlulie Portfolio Composition March 31, 2009 Portfolio Composition by Security Type Portfolio Composition by Issuer ■FHLB 21.6% ❑FFCB 9.9% 0 Pools& Money 7.5/°■Tex Star ■ Agency / Markets i Securities— j 21.6% 72.9% ❑FHLMC y/ 17.7% ❑TexPool 14.2% ■Government Securities \ BUS Treasury 5.4% ■ 5.4/° FNMA ° 23.7% Portfolio Composition by Maturity (Percentage) Portfolio Composition by Maturity (Amount) ■0-3 Months $50 32.4% ❑3-6 Months 21.3% $40 - — c $30 — -- 0 ❑2-3 Years .% $10 — — - 7.3% e 6-9 Months 13.6% ❑9-12 Months 0-3 Months 3-6 Months 6-9 Months 9-12 1 - 2 2 - 3 Over 3 ■1-2 Years Months Years Years Years 20.0% 5.4% First Southwest Asset Management Page 4 of I I i Me i i i i i i i IIIIII i i i i i i alb i i City of Southlake Benchmark Comparison March 31,2009 6.000% -- -- --Southlake Portfolio Month-End Wtd Avg Yld --.- TexPool Monthly Average 5.000% - - --lb-3-Mo CMT(3-Month Moving Avg) -- --6-Mo CMT(6-Month Moving Avg) 4.000% -"IIIN \ ' —m-1-Yr CMT(12-Month Moving Avg) 3.000% - `2.000% a".11M 1.000°G 0.000% i I i i I I i i i i i i i i �� i` N- r- co co co co co oo 0o co co co co 0 orn CD 0) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ti c ' co n. > U c I, o a)� m co� a at > > > ar 0 a) co ar n' 0 z 0 -3 u. 2 Q 2 --3 -' < Cl) 0 Z 0 -- tL Notes: I.) Benchmark data for TexPool is the monthly average yield. 2.)CMT stands for Constant Maturity Treasury This data is published in Federal Reserve Statistical Release 1-1.15 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. 3.)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 CMT is the daily average for the previous 12-months. -7 First Southwest Asset Management Page 5 of 13 .... ... ..1., . .... 1 En IS MB 1 I - N - - - - - r City of South lake DETAIL OF SECURITY HOLDINGS As of Alarch 31,2009 Security Security Settlement Maturity Next Call Purchase Purchase Market Market Accrued Days to Days to Yield In Yield to Description CUSIP Coupon Date Dale Dale Par Value Price Cost Dook Value Price Value Interest Maturity Next Call Maturity Next Call General Operating TexSTAR texstar 0.594 5,850,852.51 100.000 5,850,852.51 5,850,852.51 100.000 5,850,852.51 0.00 I 0.594 TexPool texpool 0.579 7,026,156.90 100.000 7,026,156.90 7,026,156.90 100.000 7,026,156.90 0.00 I 0.579 FI-ILMC 3128X71W5 2.265 05-29-08 04-14-09 3,000,000.00 99.704 2,991,120.00 2,999,639.25 100.056 3,001,686.00 31,521.25 14 2.608 FHLMC 3134A4UQ5 3.375 04-16-08 04-15-09 1,500,000.00 101.065 1,515,975.00 1,500,614.42 100.094 1,501,406.25 23,343.75 15 2.289 U.S.T-Note 912828GP9 4.500 08-06-08 04-30-09 3,000,000.00 101.656 3,049,687.50 3,005,396.77 100.344 1010,312.50 56,685.08 30 2.208 FHLB 3133XRD98 2.375 05-27-08 05-27-09 3,000,000.00 99.870 2,996,100.00 2,999,401.64 100.281 3,008,437.50 24,541.67 57 2.507 FULD 3133XREU0 2.700 05-30-08 06-30-09 1,500,000.00 99.988 1,499,820.00 1,499,958.95 100.531 1,507,968.75 33,862.50 91 2.711 FFCB 31331YZ37 3.125 07-01-08 07-01-09 3,000,000.00 100.113 3,003,390.00 3,000,845.18 100.687 3,020,625.00 23,437.50 92 3.009 FHLB 3133XFYK6 5.375 05-29-08 07-17-09 1,500,000.00 102.935 1,544,025.00 1,511,383.10 101.437 1,521,562.50 16,572.92 108 2.724 U.S.T-Note 912828GY0 4.625 08-06-08 07-31-09 3,000,000.00 102.234 3,067,031.25 3,022,592.71 101.437 3,043,125.00 22,997.24 122 2.314 Fl-ILD Disc Note 313385KZ8 0.000 09-08-08 08-28-09 2,500.000.00 97.197 2.429 937.50 2,470,510.42 99.880 2.497,000.00 0.00 150 2.973 FHLB Disc Note 313385LG9 0.000 09-08-08 09-04-09 2,500,000.00 97.142 2,428,552.08 2,469,125.00 99.870 2,496,750.00 0.00 157 2.975 FHLMC 3128X3WY5 4.000 11-05-08 09-22-09 5,000,000.00 101.192 5,059,580.00 5,032,295.70 101.467 5.073,355.00 5.000.00 175 2.620 FFCB 31331GCE7 2.700 10-10-08 09-23-09 3,000,000.00 100.449 3,013.467,00 3,006,772.20 100.906 3,027,187.50 1,800.00 176 2.221 FHLB 3133XSDPO 3.375 09-29-08 09-29-09 3,000,000.00 99.977 2,999,310.00 2,999,657.84 101.219 3,036,562.50 562.50 182 3.399 FNMA Disc Note 313589MR1 0.000 10-17-08 10-07-09 3,000,000.00 96.844 2,905,333.33 2.949,600.00 99.820 2,994,600.00 0.00 190 3.350 FNMA Disc Note 313589NX7 0.000 11-18-08 11-06-09 6,000.000.00 97.941 5,876,450.00 5,923,350.00 99.760 5,985,600.00 0.00 220 2.174 FNMA 31398AJX1 3.875 11-10-08 12-10-09 6,000,000.00 101.705 6,102,300.00 6,065,562.55 102.062 6,123,750.00 71,687.50 254 2.271 FNMA 31398AKX9 3.250 02-04-09 02-10-10 2,000,000.00 102.197 2,043,940,00 2,037.305.53 101.969 2,039,375.00 9,208.33 316 1.071 FHLB 3133XSZ84 1.000 02-04-09 03-02-10 4,000,000.00 99.938 3,997,520.00 3,997,872.98 100.031 4,001,250.00 6,555.56 336 1.058 FI ILD 3133XT4S2 1.050 03-23-09 05-28-10 3,000,000.00 99.964 2,998,920,00 2,998,942.57 100.000 3,000,000.00 3,850 00 423 1.081 FHLB 3133XSY88 1.120 02-20-09 06-30-10 3,000.000.00 99.817 2,994,510.00 2,994,951.44 100.344 3,010,312.50 5,786.67 456 1.256 FNMA 31398ASU7 3.250 01-07-09 08-12-10 5,000,000.00 103.072 5,153,585.00 5,131,449.38 102.844 5,142,187.50 22,118.06 499 1.300 FHLMC 3128X4KF7 4.750 12-17-08 09-22-10 3,000,000.00 104.729 3,141,870.00 3,118,72666 104.752 3,142,572.00 3,562.50 540 2.006 FHLMC 3128X8DX9 2.000 12-30-08 12-30-10 12-30-09 3,000,000.00 100.000 3,000,000.00 3,000,000.00 100.336 3,010,083.00 15,166.67 639 274 2.516 3.023 FFCB 31331GMU0 1.850 02-17-09 02-17-11 02-17-10 5,000,000.00 100.000 5,000,000.00 5,000,000.00 100,281 5,014,062.50 11,305.56 688 323 1.850 1.850 FIILMC 3128X8CK6 2.125 12-22-08 12-22-11 12-22-09 4,000,000.00 100.000 4,000,000.00 4,000,000.00 99.973 3,998,924.00 23,375.00 996 266 2.125 2.125 FNMA 31398A5T0 4.150 12-18-08 01-13-12 01-13-10 4,000,000.00 103.003 4,120,120.00 4,088,129.89 102.375 4,095,000.00 35,966.67 1,018 288 3.116 1.312 2.275 99,377,009.41 100.454 99,809,553.07 99,701,093.58 100.821 100,180,704.41 448,906.90 299 2.034 Parks Development Corporation TexSTAR texstar 0.594 2,480,978.80 100.000 2,480,978.80 2,480,978.80 100.000 2,480,978.80 0.00 I 0.594 TexPool texpool 0.579 8,758,853.20 100.000 8,758,853.20 8,758,853.20 100.000 8,758,853.20 0.00 1 0.579 0.582 11,239,832.00 100.000 11,239,832.00 11,239,832.00 100.000 11,239,832.00 0.00 I 0.582 GRAND TOTAL 2.103 110,616,841,41 100,408 111,049,385,07 110,940,925.58 100.738 111,420,536.41 448,906.90 268 1.887 First Southwest Asset Management Page 6 of 13 ... - ... 176 .... - 1 .6 - City of South lake CHANGE IN VALUE From 12-31-08 To 03-31-09 Security Maturity 12-31-08 12-31-08 Additions Withdrawals Interest Accrued 03-31-09 03-31-09 Description CUSIP Coupon Date Book Value Market Value Purchases Sales Received Interest Book Value Market Value General Operating TexPool lexpool 0.579 10,909,421.05 10,909,421.05 89,253.53 -3,972,517.68 17,158.53 0.00 7,026,156.90 7,026,156.90 TexSTAR texetar 0.594 18,827,073.36 18,827,073.36 17,351.87 -12,993,572.72 23,779.15 0.00 5,850,852.51 5,850,852.51 FNMA 31359MUQ4 3.125 03-16-09 4,106,906.82 4,123,791.87 0.00 -4,166.093.75 0.00 0.00 0.00 0.00 GE Capital Corp CP 3695911QP5 0.000 03-23-09 2,979,885.00 2,998,293.00 0.00 -3,000,000.00 0.00 0.00 0.00 0.00 FHLMC 3128X73W5 2.265 04-14-09 2,997,141.75 3,014,874.00 0.00 0.00 0.00 31,521.25 2,999,639.25 3,001,686.00 FHLMC 3134A4UQ5 3.375 04-15-09 1,504,564.29 1,512,187.50 0.00 0.00 0.00 23,343.75 1,500,614.42 1,501.406.25 U.S.1-Note 9128280P9 4.500 04-30-09 3,022,145.37 3,042,187.50 0.00 0.00 0.00 56,685.08 3,005,396.77 3,010,312.50 FHLB 3133XR098 2.375 05-27-09 2,998,440.00 3.025,312.50 0.00 0.00 0.00 24.541.67 2,999,401.64 3,008,437.50 FMB 3133XREU0 2.700 06-30-09 1,499,918.08 1,516,875.00 0.00 0.00 0.00 33,862.50 1,499,958.95 1,507,968.75 FFCB 31331YZ37 3.125 07-01-09 3,001,681.07 3,041.250.00 0.00 0.00 46,875.00 23,437.50 3,000.845.18 3,020,625.00 FFCB 31331Y2K5 3.090 07-02-09 1,050,044.17 1,050,000.00 0.00 -1,066,222.50 0.00 0.00 0.00 0.00 FHLD 3133XFYK6 5.375 07-17-09 1,520.952.39 1,539,843.75 0.00 0.00 40,312.50 16,572.92 1,511,383.10 1,521,562.50 U.S.1-Note 912828GY0 4.625 07-31-09 3,039,397.20 3,075,000.00 0.00 0.00 69,375.00 22.997.24 3,022.592.71 3,043,125.00 FHLB Disc Note 313385KZ8 0.000 08-28-09 2,452,697.92 2,491,750.00 0.00 0.00 0.00 0.00 2,470,510.42 2,497,000.00 FHLB Disc Note 313385LG9 0.000 09-04-09 2,451,312.50 2,490,750 00 0.00 0.00 0.00 0.00 2,469,125.00 2,496,750.00 FHLMC 3128X3WY5 4.000 09-22-09 5,049,000.37 5,114,035.00 0.00 0.00 100,000.00 5,000.00 5,032.295.70 5,073,355.00 FFCB 31331GCE7 2.700 09-23-09 3,010,255.04 3,046,875.00 (1.00 0.00 40,500.00 1.80000 3,006,772.20 3,027,187.50 I FULD 3133XS0P0 3.375 09-29-09 2,999,487.70 3,062,812.50 0.00 0.00 50,625.00 562.50 2,999,657.84 3,036,562.50 FNMA Disc Note 313589MR1 0.000 10-07-09 2,925,600.00 2,986,200.00 0.00 0.00 0.00 0.00 2,949,600.00 2,994,600.00 FNMA Disc Note 313589NX7 0.000 11-06-09 5,891,850.00 5,966,400.00 0.00 0.00 0.00 0.00 5,923,350.00 5,985.600.00 FNMA 31398AJX1 3.875 12-10-09 6,088,846.85 6,174,375.00 0.00 0.00 0.00 71,687.50 6,065,562.55 6,123,750.00 FNMA 31398AKX9 3.250 02-10-10 0.00 0.00 2,075,356.67 0.00 32.500.00 9,208.33 2,037.305.53 2,039,375.00 FHLB 3133XSZ84 1.000 03-02-10 0.00 0.00 3,997,742.22 0.00 0.00 6,555.56 3,997,872.98 4,001,250.00 FIILD 3133XT4S2 1.050 05-28-10 0.00 0.00 3,002,070.00 0.00 0.00 3,850.00 2,998,942.57 3,000,000.00 FULD 3133XSY138 1.120 06-30-10 0.00 0.00 2,996,470.00 0.00 0.00 5,786.67 2,994,951.44 3,010,312.50 FNMA 31398ASU7 3.250 08-12-10 0.00 0.00 5,219,036.39 0.00 81,250.00 22,118.06 5,131,449.38 5,142,187.50 FHLMC 3128X4KF7 4.750 09-22-10 3,138,563.81 3,168,096.00 0.00 0.00 71,250.00 3,562.50 3,118,726.66 3,142,572.00 FFCB 313310008 3.9011 10-14-10 2,950,000.00 2,952,765.62 0.00 -2,978,762.50 0.00 0.00 0.00 0.00 Fl-ILMC 3128X8BX9 2.000 12-30-10 3,000,000.00 3,015,549.00 0.00 0.00 0.00 15,166.67 3,000,000.00 3,010,083.00 FFCD 313310MU0 1.850 02-17-11 0.00 0.00 5,000,000.00 0.00 0.00 11,305.56 5,000,000.00 5,014,062.50 FI-ILMC 3128X4N56 5.250 02-24-11 1,870,885.15 1,875,622.04 0.00 -1,912,930.00 0.00 0.00 0.00 0.00 FI-ILMC 3128X8CK6 2.125 12-22-11 4,000,000.00 4,004,396.00 0.00 0.00 0.00 23,375.00 4,000,000.00 3,998,924.00 FNMA 31398A510 4.150 01-13-12 4,115,813.64 4,086,250.00 0.00 0.00 82,538.89 35,966.67 4,088,129.89 4,095,000.00 107,401,883.51 108,111,985.70 22,397,280.68 -30,090,099.15 656,164.07 448,906.90 99.701,093.58 100,180,704.41 Parks Development Corporation TexPool lexpool 0.579 9,492,374.50 9,492,374.50 4,303.61 -737,824.91 16,498.70 0.00 8,758,853.20 8.758,853.20 TcxSTAR texstar 0.594 2,476,491.76 2,476,491.76 4,487.04 0.00 4,487.04 0.00 2,480,978.80 2,480,978.80 11,968,866.26 11.968,866.26 8,790.65 -737.824.91 20.985.74 0.00 11,239,832.00 11,239.832.00 GRAND TOTAL 119,370,749.77 120,080,851.96 22,406,071.33 -30,827,924.06 677,149.81 448,906.90 110,940,925.58 111,420,536.41 First Southwest Asset Management Page 7 of 13 I M lb IMO NMI City of Southlake General Operating INVESTMENT TRANSACTIONS From 01-01-09 To 03-31-09 Settle Mature Call Unit Dale Security CUSIP Coupon Dale Dale Quantify Price Amount PURCIIASES 01-07-09 FNMA 31398ASU7 3.250 08-12-10 5,000,000 103.072 5,153,585.00 Accrued Interest 65,451.39 02-04-09 FNMA 31398AKX9 3.250 02-10-10 2,000,000 102.197 2,043,940.00 Accrued Interest 31,416.67 02-04-09 I'HLB 3133XSZ84 1.000 03-02-10 4,000,000 99.938 3,997,520.00 Accrued Interest 222.22 02-17-09 FFCI3 31331GMU0 1.850 02-17-11 02-17-10 5,000,000 100.000 5,000,000.00 02-20-09 FFILB 3133XSYB8 1.120 06-30-10 3,000,000 99.817 2,994,510.00 Accrued Interest 1,960.00 03-23-09 FHLB 3133XT4S2 1.050 05-28-10 3,000,000 99.964 2,998,920.00 Accrued Interest 3,150.00 22,290,675.28 CALLS 01-02-09 FFCB 31331Y2K5 3.090 07-02-09 01-02-09 1,050,000 100.000 1,050,000.00 Accrued Interest 16,222.50 01-14-09 FFCB 3133IGDD8 3.900 10-14-10 01-14-09 2,950,000 100.000 2,950,000.00 Accrued Interest 28,762.50 02-24-09 FI-ILMC 3128X4N56 5.250 02-24-11 02-24-09 1,864,000 100.000 1,864,000.00 Accrued Interest 48,930.00 5,957,915.00 MATURITIES 03-16-09 FNMA 31359MUQ4 3.125 03-16-09 4,102,000 100.000 4,102,000.00 Accrued Interest 64,093.75 03-23-09 GE Capital Corp CI' 369591-IQP5 0.000 03-23-09 3,000,000 100.000 3,000,000.00 7,166,093.75 Page 8 of 13 First Southwest Asset Management I Mil VIII IIIIIII MB NMI NM IMII =I IIIIII Ill Eli MINI MINI MINI IIIIII MINI Olt` City of Southlake EARNED INCOME From 12-31-08 To 03-31-09 Beg' ' g Ending Adjusted Accrued Purchased Sold Interest Earned Accrued Amortization/ Earned Interest Interest Interest Received Interest Interest Accretion Income General Operating TexSTAR (texstar) 0.00 0.00 0.00 23,779.15 23,779.15 0.00 0.00 23,779.15 TexPool (texpool) 0.00 0.00 0.00 17,158.53 17,158.53 0.00 0.00 17,158.53 FNMA 3.125%Due 03-16-09(31359muq4) 37,388.02 0.00 64,093.75 0.00 26,705.73 0.00 -4,906.82 21,798.91 GE Capital Corp CP 0.000%Due 03-23-09(36959hqp5) 0.00 0.00 0.00 0.00 0.00 0.00 20,115.00 20,115.00 FHLMC 2.265%Due 04-14-09(3128x7jw5) 14,533.75 0.00 0.00 0.00 16,987.50 31,521.25 2,497.50 19,485.00 FHLMC 3.375%Due 04-15-09(3134a4uq5) 10,687.50 0.00 0.00 0.00 12,656.25 23,343.75 -3,949.86 8,706.39 U.S.T-Note 4.500%Due 04-30-09(912828gp9) 23,121.55 0.00 0.00 0.00 33,563.54 56,685.08 -16,748.60 16,814.94 FHLB 2.375%Due 05-27-09(3I33xrd98) 6,729.17 0.00 0.00 0.00 17,812.50 24,541.67 961.64 18,774.14 FHLB 2.700%Due 06-30-09(3133xreu0) 23,737.50 0.00 0.00 0.00 10,125.00 33,862.50 40.87 10,165.87 FFCB 3.125%Due 07-01-09(31331yz37) 46,875.00 0.00 0.00 46,875.00 23,437.50 23,437.50 -835.89 22,601.61 FFCB 3.090%Due 07-02-09(3133 1y2k5) 16,132.37 0.00 16,222.50 0.00 90.12 0.00 -44.17 45.95 FHLB 5.375%Due 07-17-09(3133xfyk6) 36,729.17 0.00 0.00 40,312.50 20,156.25 16,572.92 -9,569.29 10,586.96 U.S.T-Note 4.625%Due 07-31-09(9I2828gy0) 58,063.86 0.00 0.00 69,375.00 34,308.38 22,997.24 -16,804.49 17,503.89 FHLB Disc Note 0.000%Due 08-28-09(313385kz8) 0.00 0.00 0.00 0.00 0.00 0.00 17,812.50 17,812.50 FHLB Disc Note 0.000%Due 09-04-09(3133851g9) 0.00 0.00 0.00 0.00 0.00 0.00 17,812.50 17,812.50 FHLMC 4.000%Due 09-22-09(3128x3wy5) 55,000.00 0.00 0.00 100,000.00 50,000.00 5,000.00 -16,704.67 33,295.33 FJCB 2.700%Due 09-23-09(31331 gce7) 22,050.00 0.00 0.00 40,500.00 20,250.00 1,800.00 -3,482.84 16,767.16 FHLB 3.375%Due 09-29-09(3133xsdp0) 25,875.00 0.00 0.00 50,625.00 25,312.50 562.50 170.14 25,482.64 FNMA Disc Note 0.000%Due 10-07-09(313589mr1) 0.00 0.00 0.00 0.00 0.00 0.00 24,000.00 24,000.00 FNMA Disc Note 0.000%Due 11-06-09(313589nx7) 0.00 0.00 0.00 0.00 0.00 0.00 31,500.00 31,500.00 FNMA 3.875%Due 12-10-09(31398ajx1) 13,562.50 0.00 0.00 0.00 58,125.00 71,687.50 -23,284.30 34,840.70 FNMA 3.250%Due 02-10-10(31398akx9) 0.00 31,416.67 0.00 32,500.00 10,291.66 9,208.33 -6,634.47 3,657.19 FFILB 1.000%Due 03-02-10(3133xsz84) 0.00 222.22 0.00 0.00 6,333.34 6,555.56 352.98 6,686.31 FHLB 1.050%Due 05-28-10(3133x14s2) 0.00 3,150.00 0.00 0.00 700.00 3,850.00 22.57 722.57 FHLB 1.120%Due 06-30-10(3133xsyb8) 0.00 1,960.00 0.00 0.00 3,826.67 5,786.67 441.44 4,268.11 FNMA 3.250%Due 08-12-10(3 1398asu7) 0.00 65,451.39 0.00 81,250.00 37,916.67 22,118.06 -22,135.62 15,781.04 FHLMC 4.750%Due 09-22-10(3128x4kf7) 39,187.50 0.00 0.00 71,250.00 35,625.00 3,562.50 -19,837.15 15,787.85 FFCB 3.900%Due 10-14-10(31331gdd8) 24,607.92 0.00 28,762.50 0.00 4,154.58 0.00 0.00 4,154.58 FHLMC 2.000%Due 12-30-10(3128x8bx9) 166.67 0.00 0.00 0.00 15,000.00 15,166.67 0.00 15,000.00 FFCB 1.850%Due 02-17-1 I(31331gmu0) 0.00 0.00 0.00 0.00 11,305.56 11,305.56 0.00 11,305.56 FHLMC 5.250%Due 02-24-1 1(3128x4n56) 34,522.83 0.00 48,930.00 0.00 14,407.17 0.00 -6,885.15 7,522.02 FI-ILMC 2.125%Due 12-22-11(3128x8ck6) 2,125.00 0.00 0.00 0.00 21,250.00 23,375.00 0.00 21,250.00 FNMA 4.150%Due 01-13-12(31398as10) 77,005.56 0.00 0.00 82,538.89 41,500.00 35,966.67 -27,683.74 13,816.26 568,100.86 102,200.28 158,008.75 656,164.07 592,778.59 448,906.90 -63,779.93 528,998.65 Parks Development Corporation TexSTAR (texstar) 0.00 0.00 0.00 4,487.04 4,487.04 0.00 0.00 4,487.04 TexPool (texpool) 0.00 0.00 0.00 16,498.70 16,498.70 0.00 0.00 16,498.70 0.00 0.00 0.00 20,985.74 20,985.74 0.00 0.00 20,985.74 GRAND TOTAL 568,100.86 102,200.28 158,008.75 677,149.81 613,764.33 448,906.90 -63,779.93 549,984.39 First Southwest Asset Management Page 9 of 13 1 EN Ilt N EN MI 1 EN M EN 1111 NS - MN I NIB In 11lo M N City of Southlake AMORTIZATION AND ACCRETION From 12-31-08 To 03-31-09 Purchase information Amortization/Accretion Information Purchase Dale Total Adjusted Quantity Dale Price Total Coat To Dale To Dale Balance Cost General Operating FNMA 3.125%Due 03-16-09(31359mug4) 0 06-10-08 0.000 0.00 -4,906.82 -18,500.02 0.00 GE Capital Corp CP 0.000%Due 03-23-09(36959hqp5) 0 06-26-08 0.000 0.00 20,115.00 67,050.00 0.00 FHLMC 2.265%Due 04-14-09(3128x7jw5) 3,000,000 05-29-08 99.704 2,991,120.00 2,497.50 8,519.25 360.75 2,999,639.25 FHLMC 3.375%Due 04-15-09(3134a4ug5) 1,500,000 04-16-08 101.065 1,515,975.00 -3,949.86 -15,360.58 -614.42 1,500,614.42 U.S.T-Note 4.500%Due 04-30-09(912828gp9) 3,000,000 08-06-08 101.656 3,049,687.50 -16,748.60 -44,290.73 -5,396.77 3,005,396.77 FHLB 2.375%Due 05-27-09(3133xrd98) 3,000,000 05-27-08 99.870 2,996,100.00 961.64 3,301.64 598.36 2,999,401.64 FHLB 2.700%Due 06-30-09(3133xreu0) 1,500,000 05-30-08 99.988 1,499,820.00 40.87 138.95 41.05 1,499,958.95 FFCB 3.125%Due 07-01-09(31331yz37) 3,000,000 07-01-08 100.113 3,003,390.00 -835.89 -2,544.82 -845.18 3,000,845.18 FFCB 3.090%Due 07-02-09(3133 I y2k5) 0 11-05-08 0.000 0.00 -44.17 -2,562.00 0.00 FHLB 5.375%Due 07-17-09(3133xfyk6) 1,500,000 05-29-08 102.935 1,544,025.00 -9,569.29 -32,641.90 -11,383.10 1,511,383.10 U.S.1-Note 4.625%Due 07-31-09(912828gy0) 3,000,000 08-06-08 102.234 3,067,031.25 -16,804.49 -44,438.54 -22,592.71 3,022,592.71 FHLB Disc Note 0.000%Due 08-28-09(313385kz8) 2,500,000 09-08-08 97.197 2,429,937.50 17,812.50 40,572.92 29,489.58 2,470,510.42 FHLB Disc Note 0.000%Due 09-04-09(313385Ig9) 2,500,000 09-08-08 97.142 2,428,552.08 17,812.50 40,572.92 30,875.00 2.469,125.00 FI-ILMC 4.000%Due 09-22-09(3 I28x3wy5) 5,000,000 11-05-08 101.192 5,059,580.00 -16,704.67 -27,284.30 -32,295.70 5,032,295.70 FFCB 2.700%Due 09-23-09(31331gce7) 3,000,000 10-10-08 100.449 3,013,467.00 -3,482.84 -6,694.80 -6,772.20 3,006,772.20 FHLB 3.375%Due 09-29-09(3133xsdp0) 3,000,000 09-29-08 99.977 2.999,310.00 170.14 347.84 342.16 2,999.657.84 FNMA Disc Note 0.000%Due 10-07-09(313589mr1) 3,000,000 10-17-08 96.844 2,905,333.33 24.000.00 44,266.67 50,400.00 2,949,600.00 FNMA Disc Note 0.000%Due 11-06-09(313589nx7) 6,000,000 11-18-08 97.941 5,876,450.00 31,500.00 46,900.00 76,650.00 5,923,350.00 FNMA 3.875%Due 12-10-09(31398ajx1) 6,000,000 11-10-08 101.705 6.102,300.00 -23,284.30 -36,737.45 -65,562.55 6,065,562.55 FNMA 3.250%Due 02-10-10(31398akx9) 2,000,000 02-04-09 102.197 2,043,940.00 -6,634.47 -6,634.47 -37,305.53 2,037,305.53 FF1L13 1.000%Due 03-02-10(3133xsz84) 4,000.000 02-04-09 99.938 3,997,520.00 352.98 352.98 2,127.02 3,997,872.98 FHLB 1.050"/"Due 05-28-10(3133xt4s2) 3,000,000 03-23-09 99.964 2,998,920.00 22.57 22.57 1,057.43 2,998,942.57 Page l0 of 13 First Southwest Asset Management City of Southlake AMORTIZATION AND ACCRETION From 12-31-08 To 03-31-09 Purchase Information Amorlizalion/Accrelion Information Purchase Dale Total Adjusted Quantify Dale Price Total Cost To Dale To Dale Balance Coat FMB 1.120%Due 06-30-10(3133xsyb8) 3,000,000 02-20-09 99.817 2,994,510.00 441.44 441 44 5,048.56 2,994,951.44 FNMA 3.250%Due 08-12-10(31398asu7) 5,000,000 01-07-09 103.072 5,153,585.00 -22,135.62 -22,135.62 -131,449.38 5,131,449.38 FHLMC 4.750%Due09-22-10(3128x4k17) 3,000,000 12-17-08 104.729 3,141,870.00 -19,837.15 -23,143.34 -118,726.66 3,118,726.66 FFCB 3.900%Due 10-14-10(31331gdd8) 0 10-14-08 0.000 0.00 0.00 0.00 0.00 FHLMC 2.000%Due 12-30-10(3128x8bx9) 3,000,000 12-30-08 100.000 3,000,000.00 0.00 0.00 0.00 3,000,000.00 FFCB 1.850%Due 02-17-1I(31331gmu0) 5,000,000 02-17-09 100.000 5,000,000.00 0.00 0.00 0.00 5,000,000.00 FHLMC 5.250%Due 02-24-1 I(3128x4n56) 0 05-12-08 0.000 0.00 -6,885.15 -36,720.80 0.00 FIILMC 2.125%Due 12-22-1 1(3128x8ck6) 4,000,000 12-22-08 100.000 4,000,000.00 0.00 0.00 0.00 4,000,000.00 FNMA 4.150%Due 01-13-12(31398ast0) 4,000,000 12-18-08 103.003 4,120,120.00 -27,683.74 -31,990.11 -88,129.89 4,088,129.89 PORTFOLIO TOTAL 86,932,543.66 -63,779.93 -99,192.31 -324,084.17 86,824,084.17 GRAND TOTAL 86,932,543.66 -63,779.93 -99,192.31 -324,084.17 86,824,084.17 Page 11 or 13 First Southwest Asset Management lbMN OM Mil MI MINI Mill MIN el 11.11 UN 111 NS 11111 1E111 10 MI MINI • City of Southlake PROJECTED FIXED INCOME CASH FLOWS Beginning April 1,2009 SECURITY DESCRIPTION APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FED MAR TOTAL AGENCY COUPON SECURITIES FHLMC 2.265%Due 04-14-09(3128x7jw5) 3,033,975.00 3,033,975.00 FHLMC 3.375%Due 04-15-09(3134a4uq5) 1,525,312.50 1,525 312.50 F1-IL13 2.375%Due 05-27-09(3133xrd98) 3,035,625.00 3,035,625.00 FHLB 2.700%Due 06-30-09(3133xreu0) 1,543,875.00 1,543,875.00 FFCB 3.125%Due 07-01-09(31331yz37) 3,046,875.00 3,046,875.00 FHLB 5.375%Due 07-17-09(3133xfyk6) 1,540,312.50 1,540,312.50 FIILMC 4.000%Due 09-22-09(3128x3wy5) 5,100,000.00 5,100,000.00 FFCB 2.700%Due 09-23-09(31331gce7) 3,040,500.00 3,040,500.00 FHLB 3.375%Due 09-29-09(3133xsdp0) 3,050,625.00 3,050,625.00 FNMA 3.875%Due 12-10-09(31398ajxl) 116,250.00 6,116,250.00 6,232,500.00 FNMA 3.250%Due 02-10-10(31398akx9) 32,500.00 2,032,500.00 2,065,000.00 FHLB 1.000%Due 03-02-10(3133xsz84) 4,043,333.33 4,043,333.33 FHLB 1.050%Due 05-28-10(3133x14s2) 8,837.50 15,750.00 24,587.50 FHLB 1.120%Due 06-30-10(3133xsyb8) 14,093.33 16,800.00 30,893.33 FNMA 3.250%Due 08-12-10(31398asu7) 81,250.00 81,250.00 162,500.00 FHLMC 4.750%Due 09-22-10(3128x4k17) 71,250.00 71,250.00 142.500.00 FHLMC 2.000%Due 12-30-10(3128x8bx9) 30.000.00 30,000.00 60,000.00 FFCB 1.850%Due 02-17-11(31331gmu0) 46,250.00 46,250.00 92,500.00 FHLMC 2.125%Due 12-22-1 1(3128x8ck6) 42,500.00 42,500.00 85,000.00 FNMA 4.150%Due 01-13-12(31398as10) 83,000.00 83,000.00 166,000.00 Total 4,559,287.50 3,044,462.50 1,746,718.33 4,670,187.50 160,000.00 11,262,375.00 15,750.00 6,205,550.00 83,000.00 2,160,000.00 4,114,583.33 38,021,914.17 AGENCY DISCOUNT NOTES FHLB Disc Note 0.000%Due 08-28-09(313385kz8) 2,500,000.00 2,500,000.00 FHLB Disc Note 0.000%Due 09-04-09(3133851g9) 2,500,000.00 2,500,000.00 FNMA Disc Note 0,000%Due 10-07-09(313589nu•1) 3,000,000.00 3,000,000.90 Page 12 of 13 First Southwest Asset Management I. .... . .. .r. .... . ..., .... . - ..1. .. - is - - - - - City of Southiake PROJECTED FIXED INCOME CASH FLOWS Beginning April 1,2009 SECURITY DESCRIPTION APR MAY JUN JUL AUG SEP OCT NOV DEC JAN PElt MAR TOTAL FNMA Disc Note 0.000%Due 11-06-09(313589nx7) 6,000,000.00 6,000,000.00 Total 2,500,000.00 2,500,000.00 3,000,000.00 6,000,000.00 14,000,000.00 TREASURY NOTES U.S.T-Note 4.500%Due 04-30-09(912828gp9) 3,067,500.00 3,067,500.00 U.S.T-Note 4.625%Due 07-31-09(912828gy0) 3,069,375.00 3,069,375.00 Total 3,067,500.00 3,069,375.00 6,136,875.00 Grand Total 7,626,787.50 3,044,462.50 1,746,718.33 7,739,562.50 2,660,000.00 13,762,375.00 3,000,000.00 6,015,750.00 6,205 550.00 83,000.00 2,160,000.00 4,114,583.33 58,158,789.17 First Southwest Asset Management Page 13 of 13 1 1 C'-T" SOUTHLAKE FINANCE DEPARTMENT 1 CITY OF SOUTHLAKE CAPITAL IMPROVEMENTS PROGRAM QUARTERLY STATUS REPORT March 31, 2009 The Capital Improvements Plan (CIP) establishes a five (5) year funding schedule for the purchase, construction or replacement of physical assets of the City. Capital E;Iir improvements typically have a useful life of over ten (10) years and a value greater than $10,000. Most CIP projects typically involve major infrastructure development and improvement. CIP projects are primarily funded through General Obligation (GO) bonds and Revenue Certificates of Obligation. The City of Southlake's CIP Quarterly Status Report has been designed as a resource tool to be utilized by City staff, citizens of Southlake, and the community at large. The objective of this report is to provide timely and accurate information in a user friendly format regarding construction and other improvement projects in the City of Southlake. Projects within the City's CIP are categorized as follows: Street and Drainage Improvements, Traffic Management Projects, Water System Improvements, Sewer System Improvements, Crime Control Projects and Southlake Parks Development Corp. Improvement Projects. 4 C 1 L1400 Main Street Suite 440•Southlake,TX 76092 (817)748-8042•www.d.southtake.bcus TABLE OF CONTENTS Page ' Street and Drainage Improvements 1 Traffic Management Projects 5 ' Water System Improvements 6 Sewer System Improvements 9 Crime Control Projects 11 Southlake Parks Development Corp Improvements 12 1 p I CITY OF SOUTHLAKE, TEXAS I FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Street& Drainage Improvement Projects -- 4ise Report Date: March 31, 2009 LTitle: Location: Project Description: I FM 1938 Right-of-Way East side of Randol Mill from On December 31,2001,the TCC approved a Minute FM 1709 north to the city limits Order giving the extension of FM 1938(FM 1709 to SH 114)along the Randol Mill ROW Priority II funding status I and Farm to Market designation. This means the FM 1938 extension project will likely be funded. Tarrant County will be acquiring 120'of ROW for the project. An I additional 16'-20'will need to be acquired by the City of Southlake to provide a buffer, landscaping,a trail,and a 24"water line. ETotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 580,000 $ 253,664 $ 326,336 EFundinq Source(s): Status: I G.O.Bonds, G.O Bond Interest Tarrant County,through an interlocal agreement with the City, is in the process of obtaining right-of-way on the City's behalf. This is part of Phase 2 of the project. Completion Date: Before Phase 1 is complete ciiiir Title: Location: Project Description: IN.White Chapel Ultimate N.White Chapel from Emerald This project is for the design of the ultimate roadway Roadway to State Hwy. 114 section(4 lane divided)as depicted by the Thoroughfare I Plan.This project also includes necessary drainage improvements. LTotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 7,095,000 $ 317,931 $ 6,777,069 EFundinq Source(s): Status: G.O.Bonds,G.O Bond Interest,Roadway Impact funds Design is currently underway. Construction is tentatively C scheduled to begin first quarter 2010. Completion Date: Fall 2010 ETitle: Location: Project Description: C Sidewalks throughout the city Various locations Construction of sidewalks in areas where staff has received requests for the installation of sidewalks,primarily around schools and areas where sidewalks would improve pedestrian safety. i opr Total Estimated Cost: LTD Actual Cost: Cost to Complete: C $ 717,168 $ 97,938 $ 619,231 ` Page 1 III C CITY OF SOUTHLAKE,TEXAS L FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Street& Drainage Improvement Projects -- Report Date: March 31,2009 L lir Funding Source(s): Status: EG.O.Bonds,Strategic Initiative Fund transfer In progress ECompletion Date: When funds are depleted CTitle: Location: Project Description: Roadway and drainage Shumaker Lane& Construct paving and drainage on Shumaker Lane. This improvements Sunshine street is a gravel street with storm water run-off that floods I property to the west in Hunter's Ridge subdivision. On Sunshine the project will scarify,reclaim,and reshape the existing pavement and subgrade. Existing bar ditches Ewill be regraded and reshaped to improve drainage. Total Estimated Cost: LTD Actual Cost: Cost to Complete: E $ 945,858 $ 515,234 $ 430,624 kaller Funding Source(s): Status: Strategic Initiative Fund transfer This project has been awarded and construction began in November 2008 Contract is approximately 56%complete. Completion Date: Summer 2009 Title: Location: Project Description: ICRoundabout construction White Chapel at Continental Reconstruct the intersection to improve traffic flow and drainage. The design will include a traffic analysis to Cdetermine the optimal intersection. Total Estimated Cost: LTD Actual Cost: Cost to Complete: E $ 750,000 $ 191,375 $ 558,625 Funding Source(s): Status: Strategic Initiative Fund transfer, Roadway Impact fund Project design is complete and the right-of-way acquisition is underway. The project is scheduled to be awarded May 2009 with construction to begin Summer 2009. Completion Date: Fall 2009 ETitle: Location: Proiect Description: Roundabout construction Dove at N.White Chapel Reconstruct the intersection to improve traffic flow and L — drainage. The design will include a traffic analysis to determine the optimal intersection. IL Page 2 UP L CITY OF SOUTHLAKE, TEXAS L FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Street& Drainage Improvement Projects -- Report Date: March 31, 2009 L r Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 805,000 $ 62,743 $ 742,257 Funding Source(s): Status: IStrategic Initiative Fund transfer,Roadway Impact fund The project design is complete,right of way and utility relocations are underway,and the project is scheduled to be C awarded in April 2009. Completion Date: Winter 2009 ITitle: Location: Project Description: Roundabout construction Dove at N.Carroll Reconstruct the Dove St.and N.Carroll Ave intersection to I improve traffic flow and drainage. The design will include a traffic analysis to determine the optimal intersection. CTotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 1,052,500 $ 260,305 $ 792,195 Funding Source(s): Status: Strategic Initiative Fund transfer, Roadway Impact fund The project design is complete, right of way and utility C Storm Water Drainage funds relocations are underway, and the project is scheduled to be awarded in April 2009.Construction will begin May 2009. Completion Date: Fall 2009 ITitle: Location: Proiect Description: I Trail improvements East Dove Road from White Chapel Trail system implementation in key,high-use areas to to Estes Park entrance to Carroll compliment existing trails, make critical connections,or Middle School. construction as part of other capital projects. ETotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 347,000 $ 57,042 $ 289,958 EFunding Source(s): Status: EG.O.Bonds,Strategic Initiative Fund transfer Design is complete and project will be bid this summer Completion Date: Fall 2009 L Title: Location: Project Description: 1 illay I N.Kimball Avenue N.Kimball Ave from SH 114 to Reconstruct ultimate section(4 lanes divided)of N.Kimball Dove Rd. Ave from SH 114 to Dove Rd. Ultimate section would add traffic lanes to encourage re-development of the Mesco site and alleviate traffic congestion. Page 3 L CITY OF SOUTHLAKE,TEXAS L FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Street& Drainage Improvement Projects -- 4._ Report Date: March 31, 2009 L Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 1,100,000 $ 521,161 $ 578,839 LFunding Source(s): Status: Roadway Impact fees,G.O.Bonds Design and engineering currently underway CCompletion Date: FY 2010-11 C 1 C 'LIP' I I I I I IP I Page 4 I CITY OF SOUTHLAKE, TEXAS I FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Traffic Management Projects -- Report Date: March 31, 2009 L ., Title: Location: Project Description: C Agreement with TXDOT for Jellico Court East and West Brock Dr.,Meadowlark Ln., Construction of intersection improvements with construction of deceleration deceleration lanes along FM 1709 from Jellico Circle lanes at various locations Southridge Lakes Pkwy& West to Bank Street. IC along FM 1709. Waterford Dr.,Ginger Ct.,Stone Lakes PI.,Timber Lake PI.,Lake Crest Dr.,Bicentennial Park, C Diamond Blvd./Byron Nelson Pkwy.,Foxborough Ln.,Miron Dr., Westwood Dr.,Commerce St., E Bank St. Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 500,000 $ 5,976 $ 494,025 Funding Source(s): Status: CG.O.Bonds,G.O Bond Interest The design is complete,TXDOT has approved the plans and construction is scheduled to begin Summer 2009. Completion Date: Spring 2010 rivibor Title: Location: Proiect Description: IDesign of right turn deceleration Various locations on Southlake Professional services agreement with TranSystems lanes Blvd. Corporation. Services will include design, right-of-way I surveying with digital aerial photogrammetry,preparation of construction plans and specifications,and preparation of construction documents.The project will also address L drainage and culvert issues that are necessary to accommodate the widening. Total Estimated Cost: LTD Actual Cost: Cost to Complete: C $ 343,123 $ 287,690 $ 55,433 LFunding Source(s): Status: G.O.Bonds,G.O Bond Interest Utility relocation plans are complete and right of way I acquisition is underway.Utility construction will begin in April 2009. The design of the deceleration lanes is complete and plans have been approved by TXDOT.Construction is L anticipated to begin Fall 2009. Completion Date: Spring 2009 L i L Page 5 r CITY OF SOUTHLAKE,TEXAS L FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Water System Improvement Projects -- LReport Date: March 31, 2009 Title: Location: Project Description: L 12"water line Along E.Continental Blvd.from Replace existing 8"water main with approximately 1,200 Byron Nelson Pkwy.to LF of 12"water main.Tie in existing 8"at Wyndsor Champion's Way Creek,tie in existing 8"at Sarah Park Trail,and tie in Lexisting 6"at W. Perry&E. Perry. Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 276,650 $ 276,370 $ 280 EFundinq Source(s): Status: Tax&Revenue Certificates of Obligation 99%complete (issued in 2006) LCompletion Date: Spring 2009 ILTitle: Location: Project Description: cor Florence 1.5 MG elevated Brewer Dr.just south of Construction of a 1.5 million gallon water tower to replace water tank Florence Rd. the existing 0.5 million gallon tank on Florence Dr.The capacity of the existing tank is inadequate and has to be L refilled many times per day, resulting in cost of pumping, electricity and shortage of supply to the customers. Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 2,860,000 $ 2,645,783 $ 214,217 EFunding Source(s): Status: Tax&Revenue Certificates of Obligation Construction 97%complete. The new tank is operational. Final paving and landscaping are nearing completion. Completion Date: Spring 2009 IITitle: Location: Project Description: 30"water supply line to TW King TW King Pump Station#2 Construct approximately 32,000 linear feet of 24"water C Pump Station#2 transmission line in order to fully utilize pump station#2 and the ground storage tanks. Currently,this pump station is not connected to the Fort Worth supply line. It has to be back Ep fed from pump station#1. This process is inefficient and reduces the City's ability to pump water throughout the system. i L — Total Estimated Cost: LTD Actual Cost: Cost to Complete: $ 5,476,000 $ 244,361 $ 5,231,639 LW Page 6 t E CITY OF SOUTHLAKE, TEXAS E FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Water System Improvement Projects -- ` Report Date: March 31, 2009 L Funding Source(s): Status: L Tax&Revenue Certificates of Obligation This part of the project is for 7,500 LF for Segments A and F. The design phase is complete,the contract has been awarded and construction is anticipated to begin May 2009. LCompletion Date: FY 2009/10 L ICTitle: Location: Project Description: 12"water line along Randol Mill from Randol Mill Bend This project involves replacing 8300 linear feet of existing 6" C Randol Mill to FM 1709 water line along this portion of Randol Mill. The design was completed during FY 01-02 from FM 1709 to Florence. LTotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 430,000 $ 95,000 $ 335,000 iiiimp. Funding Source(s): Status: Tax&Revenue Certificates of Obligation Construction of the water line is on hold until the right-of-way E has been acquired. This will be done in conjunction with Phase II of the FM 1938 improvement project. LCompletion Date: September 2010 IliTitle: Location: Project Description: 12"water line along Highland from Shady Oaks This project involves upgrading 5500 LF of 6"pipe with 12" EHighland to SH114 water line. Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 500,000 $ 44,808 $ 455,192 Funding Source(s): Status: LTax&Revenue Certificates of Obligation Engineering is complete and project has been awarded. Construction is scheduled to begin April 2009. LCompletion Date: Fall 2009 L .., Page 7 C CITY OF SOUTHLAKE,TEXAS E FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Water System Improvement Projects -- Report Date: March 31, 2009 Title: Location: Project Description: City of Fort Worth North Beach,Caylor,Southlake Meter station improvements required for Fort Worth to meter modifications Pearson and Keller pump stations assume meter reading responsibility and to bill the City of Keller and the City of Southlake separately Total Estimated Cost: LTD Actual Cost: Cost to Complete: C $ 818,501 $ 100,311 $ 718,191 Funding Source(s): Status: Contract has been awarded and is approximately ETax&Revenue Certificates of Obligation 14%complete Completion Date: FY2009-10 1 C C C C C r Page 8 t I CITY OF SOUTHLAKE,TEXAS I FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Sewer System Improvement Projects -- 141) Report Date: March 31, 2009 Il Title: Location: Project Description: C Neighborhood sanitary sewer Quail Creek Estates,Woodland Install 8"sanitary sewer lines to convert neighborhoods installation,convert from septic Heights,and Shumaker Lane from septic to sewer. 7,000 LF in Quail Creek and Woodland Heights,930 LF on Shumaker Lane from Hunter's Creek to Sunshine Ln. Total Estimated Cost: LTD Actual Cost: Cost to Complete: C $ 2,254,735 $ 890,724 $ 1,364,011 CFunding Source(s): Status: Tax&Revenue Certificates of Obligation Project is under construction,37%complete 1 f (issued in 2006) Completion Date: Fall 2009 ' Title: Location: Project Description: I ky N-1 sewer analysis and meter N-1 sewer line from Southlake and Sewer system capacity and structural integrity evaluation station improvements for TRA Westlake border to north of and miscellaneous meter station improvements necessary improvements Kirkwood Blvd. to satisfy TRA requirements for turnover of ownership and maintenance of the N-1 line north of the Southlake city limit. I Completion of the turnover will shift Westlake billing responsibility to TRA. LTotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 200,000 $ 37,191 $ 162,809 CFunding Source(s): Status: Residual funds from other projects Professional services contract has been awarded to RJN i E Group, Inc.for the evaluation of the condition and capacity of the N-1 sewer line. LCompletion Date: Contract with RJN is complete C I 4 Page 9 p CITY OF SOUTHLAKE, TEXAS I FY 2008-09 CAPITAL IMPROVEMENTS PLAN —Sewer System Improvement Projects — �,. Report Date: March 31,2009 Title: Location: Project Description: 8"sewer line Heatherwood Estates This project involves providing sanitary sewer service to the Royal Oaks Estates indicated neighborhoods which are experiencing problems Twin Creek Estates with septic systems;also to improve groundwater quality within the city. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $ 1,000,000 $ 97,497 $ 902,503 Funding Source(s): Status: Tax&Revenue Certificates of Obligation Design is 85%complete and right-of-way is ' (issued in 2008) being obtained. Completion Date: Spring 2010 klior I II I I L Page 10 I CITY OF SOUTHLAKE,TEXAS I FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Crime Control Fund Projects -- Report Date: March 31, 2009 1111 Title: Location: Project Description: f DPS East facility Central DPS facility to be located Design and construction of a centrally located DPS facility. at 667 N.Carroll Ave. ITotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 28,227,104 $ 14,497,775 $ 13,729,329 EFunding Source(s): Status: CCrime Control sales tax Construction is approximately 46%complete Completion Date: Fall 2009 ETitle: Location: Project Description: C Town Square video surveillance Town Square To strategically place fixed and moveable video cameras at Town Square and Grand Ave. Cameras will be monitored and recorded. Will help provide a sense of safety and security in Town Square,as well as provide a valuable tool in the prevention and investigation of crime. I Total Estimated Cost: LTD Actual Cost: Cost to Complete: $ 650,000 $ 292,868 $ 357,132 EFunding Source(s): Status: Crime Control sales tax 31 cameras are installed at the East and West parking C garages, Hilton Hotel, Harkins Theatre and Town Hall. Completion Date: Summer 2009 L I I I IPage 11 MI C CITY OF SOUTH LAKE, TEXAS C FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Southiake Parks Development Corp. Improvement Projects-- LAW Report Date: March 31, 2009 Title: Location: Proiect Description: ERoyal&Annie Smith Park 3001 Johnson Rd. Design,engineering and construction of an asphalt drive developments and parking area off Johnson Road,24'pavilion,irrigation, C amenities such as benches,etc.farm implement display, fine grading,landscaping,trail additions and playground. ETotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 451,652 $ 280,697 $ 170,955 LFundinq Source(s): Status: Sales Tax Revenue Bonds Construction is approximately 60%complete ECompletion Date: Fall 2009 ETitle: Location: Project Description: Elhow Liberty Park at Sheltonwood Dove at Ridgecrest Design,engineering and construction of crushed granite drive and parking,2-24'pavilions, irrigation,amenities, landscape improvements,utility upgrades,basic L remodeling of existing pavilion,trails(2,300 I.f.),playground, sand volleyball and horseshoes. Total Estimated Cost: LTD Actual Cost: Cost to Complete: L $ 837,348 $ 571,607 $ 265,741 EFundinq Source(s): Status: Sales Tax Revenue Bonds Construction is approximately 63%complete ECompletion Date: Fall 2009 IITitle: Location: Project Description: Land acquisition for multi-use Various Purchase of approximately 40-acres for lighted sports I facility complex.A new Community Park would be ideal to house a large number of the fields and minimize the alternative of decentralizing lighted facilities. LTotal Estimated Cost: LTD Actual Cost: Cost to Complete: $ 2,238,000 $ 1,095,586 $ 1,142,414 r bli Page 12 to CITY OF SOUTHLAKE, TEXAS r FY 2008-09 CAPITAL IMPROVEMENTS PLAN --Southlake Parks Development Corp. Improvement Projects— / L ,.- Report Date: March 31, 2009 Funding Source(s): Status: LSales Tax Revenue Bonds Expenditures to date have been for Miles property at Bob Jones Park. Et Completion Date: When funds are depleted ETitle: Location: Project Description: Texas Parks and Wildlife trail Walnut Grove trail system Improvements to the Walnut Grove trail system. L restoration grant,matching fund Bob Jones Trailhead-4 covered picnic tables and corral participation fencing. Walnut Grove Trailhead-2 covered picnic tables. Erosion control and improvements to trail surfaces and Cnatural water crossings. Total Estimated Cost: LTD Actual Cost: Cost to Complete: E $ 44,950 $ 6,736 $ 38,214 Funding Source(s): Status: LP Sales Tax Revenue Bonds, On hold Matching Funds from Southlake Mounted Patrol ECompletion Date: ETitle: Location: Project Description: Bicentennial Park design and Bicentennial Park Phase I improvements as part of the Bicentennial Park C development schematic design include: Shady Oaks entrance/road/round-a-bout;west baseball four-plex and parking;drainage improvements with pond enhancements; L FM 1709 entrance improvements;Evan's house modifications;Tennis Courts(from Phase III) Total Estimated Cost: LTD Actual Cost: Cost to Complete: $ 1,200,000 $ 966,646 $ 233,354 LFunding Source(s): Status: SPDC Operating Fund Design is complete and project is ready to be bid ECompletion Date: Summer 2009 L ... Page 13 p a FIRST SOUTHWEST ASSET MANAGEMENT STRENGTH STABILITY OPPORTUNITY i=- V _ �r First Southwest Asset Management ECONOMIC SUMMARY - 1ST QUARTER 2009 Major Events in government guarantees and a$20 billion dollar direct Treasury No investment U.S.automakers GM and Chrysler began and ended the IWhen 2009 began,there was a cautious sense of optimism. The Fed first quarter teetering on the brink of bankruptcy. had slashed overnight rates to zero in December. The new president promised a massive stimulus package and immediate help for struggling In the minutes from the January FOMC meeting,Fed officials severely homeowners.A drop in mortgage lending rates from the third quarter downgraded their GDP forecast for 2009 to show an overall contraction I average of 6.31%to 5.03%at the end of December opened a refinancing window for many homeowners. Gasoline prices had fallen more than of between 0.50%and 1.3%. Three months earlier,they were expecting 1.1%positive growth for the upcoming year.But,somewhere along the 60%from an average of$4.17 per gallon in July to$1.67. And the line,as weak data became exhausting and commonplace,the financial recession was officially entering its 13th month,already beyond the e markets stopped reacting to the bad news and weak numbers and began ostwar average of 11. But the economy didn't get better in January.It focusing on the government's efforts to repair the damage. got progressively worse. I On February 17th,new President Obama signed the 1,100 page, The two most common indications of economic trouble are a sustained $787 billion economic stimulus plan into law. Titled the'American and significant drop in the stock market and a rise in the unemployment Recovery and Reinvestment Act of 2009",the plan included an I rate. Although the DOW had lost nearly 20%in the final quarter of extension of unemployment benefits,targeted tax cuts and spending 2008,the first trading day of 2009 ended with a healthy 256 point gain, plans for infrastructure projects,education,health care and alternative pushing the index back above 9,000 for the first time in eight weeks. energy development On the same day,the President announced the Unfortunately,this would prove to be the high point of the quarter as the "Homeowners Affordability and Stability Act",which offered up to$275 I parade of discouraging news began. billion to help stem foreclosures through the modification of troubled loans.In March,the Fed finally launched the Term Asset-Backed The minutes from the December FOMC meeting were particularly grim Securities Loan Facility(TALF),a$1 trillion program announced with Fed officials suggesting that large stock market and housing valueI in November,intended to jumpstart the securitization markets by declines,along with the global nature of the downturn could result in a encouraging big investors,with the help of low-cost collateralized longer and deeper recession than previously thought There was plenty government loans,to purchase newly issued pools of auto,student and of December data to support the Fed's belief. The ISM factory indexI business loans. slumped to a 28-year low,retail sales were negative for the sixth straight month and December nonfarm payroll losses totaled 681k,a 60-year At the March 18th FOMC meeting,Fed officials,with no room to cut I low. This record would be broken in January as another 741k jobs disappeared and unemployment climbed above 8%. rates below zero,announced a pledge to purchase up to$300 billion in Treasuries in the open market along with another$750 billion in agency mortgage-backed securities and another$100 billion in agency Few businesses were spared the pain of the downturn.Insurance giant debt,thereby injecting huge amounts of cash into the financial system. I AIG,now 80%owned by the U.S.government,reported a stunning Interest rates responded quickly and definitively with mortgage rates $61.7 billion fourth quarter loss,received another$30 billion in falling by as much as 25 bps within days. A week later,Treasury emergency funds and became the latest poster child for risk-takingpin Secretary Geithner announced details on the Public Private Investment d corporate excess.Government-run Fannie Mae and Freddie Mac Program(PPIP),a complex plan to combine public and private posted fourth quarter losses of$25 billion and$24 billion respectively investment funds along with government guarantees in the latest effort as mortgage defaults reached new highs. Bank of America received to extract toxic assets from the balance sheets of troubled financial I $118 billion in guarantees and an additional$20 billion in TARP companies. This unusual plan drew praise from investors even as some funds during the first quarter while Citigroup received$300 billion doubted its probable success. OW Housing 2009,employers laid-off more than 5 million workers.During this same III 1 period,the unemployment rate rose from 4.9%to 8.5%.Unfortunately, 450 6 c the situation isn't improving.Job loss is expected to continue throughout - 2009 with the unemployment rate expected to easily exceed 9%before the t 1250 ,04 end of the year despite massive government stimulus designed to save and i0 -'° create jobs.The employment report will be a key indicator of economic a 1,050— —6.5", recovery.Signs of an economic upturn will become apparent as job loss 1 .I 4 slows and eventually turns positive. ....603 be i B50 L.m —6.5 I" Unem olovment Rate(Left Hand Scale` Change in Non-Farm Payrolls(Right Hand Scale) I � Existing Home Sales , 1 g 200 I /� pi 650 s:New Home Sales E t f 100 —4.5 tl i ! I I If I ! I III III 1 1 t.. I D 450— H, 5 --200 -300 fDZ TlmZ ; ; D Z mn ,DZ c ; > Zm 4— _ —-400 t a a a g g a Oi a m b t y o9 a m a m a i pp —-500 New and Existing Home Sales 2— — — --600 ` In Annualized by Month i- - — --700 0 -800 ' An eventual turnaround in the housing sector would be a critical ° m q ; = ? o o a m °1 .0 c 9 o a o b o a m a a F rg a a m m i e a component for economic recovery,but so far the housing data has shown few positive signs. Although new and existing home sales both rose in Change in Nonfarm Payrolls Unemployment Rate February,experts have written off much of the unexpected jump on a Employment Iexistingmonth. home sales dropped 35%.The lack of buyers has pushed home prices own 27%from July 2006 according to the S&P Case Shiller index. The down Spending ventory of existing homes for sale held steady at 9.7 months in February, own from a record 11.3 month supply ten months earlier,while new By the end of the fourth quarter,U.S.households had lost as much as$13 home inventories fell from a record 12.9 month supply in January to 122I trillion in net worth.By some estimates,this number had risen to$20 in February The massive inventory overhang has put a damper on new trillion by the end of the first quarter. Predictably,consumer confidence construction. Housing starts fell 17%in January to the lowest level since has plunged with the Conference Board's measure reaching 25 in February, I record-keeping began,but unexpectedly rebounded by 22%in February, the lowest level since record keeping began years earlier Interestingly again due in part to favorable weather.But there is reason to be hopeful retail sales actually rose 1.8%in January after falling for a record six Government intervention has pushed mortgage lending rates to record straight months,although the fuel for the buying spree was apparently lows-in late March,according to the MBA 30-year mortgage survey, the redemption of holiday gift cards.For all of 2008,retail sales fell 0.1%, I the average weekly rate dropped from 4.89%to 4.63%,the lowest in the first year-over-year decline in history.Auto sales have taken a severe survey history. The historically low lending rate,paired with a 27%price beating,falling to a 27-year low of 9.1 million annual units in February a discount,translates into the most affordable housing environment on 42%drop from the 15.3 million sales pace recorded for the prior 12-month I record. The National Association of Realtor's affordability index rose to period.Time Magazine reported that the average car on U.S.roads is 173 in February This means that a family earning the median U.S.income now 9.4 years old,a new record. With an estimated 12 million cars being would have 173%of the income required to qualify for a conventional loan thrown on the scrap heap annually and 2 million new drivers entering the I on a median-priced existing single-family home.This number will be even market every year,the sales pace is bound to pick up. higher in March. Inflation I Employment Inflation concerns evaporated last quarter as the global slowdown The labor market is a lagging indicator and a reliable proxy for economic intensified and speculators exited the commodities markets. Energy I growth,so abysmal employment numbers in the midst of a recession prices led the retreat with crude oil falling from a record high of$147 per should hardly come as a surprise. However,the non farm payroll numbers barrel to below$40 by year end,while gasoline prices dropped from an that were released during the quarter were severe enough to hammer ps all-time high of$4.17 to$1.67. In the first quarter of 2009,commodity ome the reality of the recession and probably contributed to a frantic prices remained in a fairly narrow range,with oil and gas prices creeping cramble by the Fed,Congress and the new Administration to come up gradually higher.However,the overall consumer price index(CPI)was with solutions to fix the problem. In December,681k payroll jobs were unchanged on a year-over-year basis in January,sparking deflationary I lost,the most in almost 60 years.The January job loss(revised)was much concerns. When a slight February increase boosted the annual consumer worse as businesses slashed 741k positions.From January 2008 to March price index to 0.2%,it actually came as a relief to the financial markets. NM I 6.G grown accustomed to in the past.. The housing market essential to 1 5.5 11111 recovery,has yet to find a bottom,despite hugely favorable conditions 5.D110.1111.1...1.1.111.11.1111111MININI for new buyers and newly gated lifelines for struggling home 4.5 I ,1— owners. The labor market has picked up a tremendous amount of L 4:G II run ommese� negative momentum w 3 million jobs lost in the past five months 3.011,111111111111111111111— The ailing fatiory senor could be dealt a severe blow later this year if 2.5 1 ' i c l ' ' 1 1111111 1 1 1 GM or Chnsler were to shut down operations. I2.G 1 1 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 1 ■lw1 1.5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 111111 . 1 The U.S.is hardly alone in its economic struggles.The Centre for 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 1■1 Economic Policy Research,an organization similar to our ovyn D.5 1 1 1 1. 1 1 1 1 1 1 1. 11. 111. 1. 1 1 1:, ! P 1 National Center for Economic Research declared that the European .G - _ _�_r -0.5 recession began in January 2008,following an unparalleled expansion -1.0 -- period dating bast:to the third quarter of 1993.The lnterna+3onai t. Z P g k 1 Monetary Fund(LNT)recently predicted that Japans GDP would I 0 CPI MI Core shrink b while 5.8%in 2009, the euro zone would fall 32%and the US.2.6%.'the Organization for Economic Cooperation and Consumer Price Index: Development predicted that the global economy will shrink by Core and All Items, Year over Year 2.75%and that globaloulpul will fall for the first lime since World War IL The answer to the worldwide recession seems to he unified Stock Markets government stimulus. 1The news is daunting and has hamstrung individual investors. Any hope for a strong start to 2009 faded away as the DOW sunk8.8%in Btrsiness Week reported that an estimated$4 trillion is currently the first month of 2009. Seventy-five percent of the time,January stock being held idle in US.money market funds earning an average rate market performance predicts the ultimate direction for the remainder of just 0.33%. The investors are able,but not willing. Too much ' of the year. The January 2009 percentage loss was the worst since 1894. t4t"; 'lac been lost already Economist Hernando de Soto pointed out After reaching a new 12-year low in early March,the DOW climbed 16% on March 25th in a Nall Street Journal editorial drat the global to end the quarter on a less negative note.Despite the late rally,the DOW � economy had experienced over S50 trillion in combined paper shed another 1,167 points or 13%,the worst first quarter performance in losses on stocks,real estate,commodities and operational earnings percentage terms since 1939. ` `^^- over the past 15 months,with subprime mortgages,largely thought ] '' to be the cause of the meltdown,accounting for no more than$1 t-vitrillion of those losses.Subprime may have been the spark,but DOW 500 NASDAQ ! the fuel seems to be the corresponding lackof truss in paper of all a kinds.The US.government is trying to restore this trust by standing 12/31/08 8,776 898 1,577 behind deposits,investments and even new car warranties. L 3/31/09 7,609 795 1,529 %Change for Q1-2009 -13% -11% -3% In the offidal statement issued following the March FOMC meeting, Fed offiulaic stated that the overnight funds rate was expected to 1 L remain within its current 0%to 025%range"for an extended period': Interest Rates Although the Fed's time frame is purposefully vague,economists polled in the March Bloomberg News survey suggest that this extended period likely extends into the third quarter of 2010. 1 b Fed 3 mo b mo 2 yr 3 yr 10 yr Funds T-bill T-bill T-note T-note T-note But Fed officials,for whatever reason,adopted a cheerier tone as the Last 12/31/08 0.25% 0.08% 0.26% 0.77% 1.55% 2.21% quarter drew to a close—Minneapolis Fed President Stem said that he was"...guardedly optimistic that many pieces are now in place High 0.32% 0.50% 1.09% 2.08% 3.01% to contribute to improvement in financial market conditions and Low 0.06% 0.26% 0.71% 1.35% 2.20% business activity', while Dallas Fed President Fisher said that"the combination of monetary police and initiatives to achieve financial End 3/31/09 0.25% 0.21% 0.42% 0.80% 1.66% 2.67% stability,and fiscal policy will work to revive the economy." Even Chairman Bemanke chimed in during a CBS 60-Minutes interview saying`I have every confidence that this economy will recover, and recover in a strong and sustained way." Although even modest recovery is probably still months away,the stimulus seeds have been I t _ Economic And Interest Rate Outlook planted and optimism,an essential element to economic recovery, may be creeping back into the picture. The US.economy is entering its 17th month of contracting GDP,surpassing both the'73-75 and`81-82 downturns to become the longest postwar Scott McIntyre,C FA recession on record. Unfortunately,the end appears to be at least another six Senior Portfolio Manager months away.And the road to sustainable growth may be longer than we've April 9,2009