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2008-01-15
OFFICIAL RECORD CITY OF SOUTHLAK,E TEXAS REGULAR CITY COUNCIL MEETING MINUTES: JANUARY 15, 2008 LOCATION: 1400 Main Street, Southlake, Texas Council Chambers in Town Hall CITY COUNCIL PRESENT: Mayor Andy Wambsganss, Mayor Pro Tern Carolyn Morris, Deputy Mayor Pro Tern Virginia M. Muzyka, and Councilmembers Laura K. Hill, Gregory Jones (arrived at 6:10 p.m.), and Vernon Stansell. CITY COUNCIL ABSENT: Councilmember John Terrell. STAFF PRESENT: City Manager Shana Yelverton, Assistant City Manager / Director of Public Safety Jim Blagg, Assistant City Manager Ben Thatcher, Assistant to the City Manager Alison Ortowski, Community Relations Officer Pilar Schank, Manager of Information Systems Gary Gregg, Director of Community Services Steve Polasek, Deputy Director of Community Services Kerry McGeath, Director of Economic Development Greg Last, Director of Finance Sharen Jackson, Director of Human Resources Kevin Hugman, Chief of Police Services Wade Goolsby, Director of Planning and Development Services Ken Baker, Deputy Director of Planning and Development Services Dennis Killough, Director of Public Works Robert H. Price, Deputy Director of Public Works Gordon Mayer, Public Works Operations Manager Chuck Kendrick, Environmental Coordinator Christi Upton, City Attorney E. Allen Taylor and City Secretary Lori Payne. WORK SESSION: Aqenda Item No. 1. Call to order. The work session was called to order by Mayor Wambsganss at 4:47 p.m. and stated Council would be going outside for the inaugural ride on the new Southlake Trolley. Agenda Item No. 2. Inaugurate the Southlake Trolley. Council had their picture taken with the trolley and went for an inaugural ride around Town Square. Aqenda Item No. 3 Invocation. Chaplain David Whitington gave the invocation. Mayor Wambsganss led the pledge of allegiance. Aqenda Item No. 4. Discuss Storm Water Management Plan Director Price introduced Environmental Coordinator Upton who presented this item to Council. Agenda Item No. 5. Discuss all items on tonight's meeting agenda. City Council reviewed the agenda items with city staff. Item 9A was added to the consent agenda. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 1 of 13 Mayor Wambsganss closed the work session at 5:32 p.m. REGULAR SESSION: Agenda Item No. 1. Call to order. The regular session was called to order by Mayor Wambsganss at 5:32 p.m. Agenda Item No. 2A. Executive Session. Mayor Wambsganss announced City Council would be going into Executive Session pursuant to the Texas Government Code Section 551.071, consultation with attorney; Section 551.072, deliberation regarding real property; and Section 551.087, deliberation regarding economic development negotiations. City Council adjourned for Executive Session at 5:32 p.m. Executive Session began at 5:54 p.m. and ended at 6:55 p.m. Agenda Item No. 2B. Reconvene. Mayor Wambsganss reconvened the regular meeting at 7:05 p.m. and asked if any action was necessary from Executive Session. No action was necessary. Agenda Item No. 3A. Mayor's Report. Mayor Wambsganss announced upcoming meetings and events. Agenda Item No. 3A1. Special presentation to Senator Kim Brimer. Mayor Wambsganss made a presentation to Senator Brimer and thanked him for his service to the community. Agenda Item No. 3B. City Manager's Report. There was no report given. Agenda Item No. 3C. Parks and Recreation Board Report. Board member John Slocum presented this item Council. Agenda Item No. 3D. Financial Report. Director Jackson presented this item to Council. CONSENT AGENDA: Consent agenda items are considered to be routine by the City Council and are enacted with one motion. Agenda Item No. 4A. Approve the minutes from the December 12, 2007, joint meeting of the Citv Council and the Planning and Zoning Commission and from the December 18, 2007, regular City Council meeting. A presentation was not made on this item. Agenda Item No. 4B. Authorize a professional services agreement with Teague Nall and Perkins, Inc. to provide engineering services for design of drainage improvements on Dove Road from North Carroll Avenue to Dove Creek. A presentation was not made on this item. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 2 of 13 Agenda Item No. 4C. Approve 2008 Community Services Agreement with ARTSNET A presentation was not made on this item. Agenda Item No. 4D. Approve 2008 Community Services Agreement with APEX Arts League. A presentation was not made on this item. Agenda Item No. 4E. ZA06-030 and ZA06-185, Plat Extensions for Saddleback Ridge Estates. The property is located at 330 through 360 West Bob Jones Road Current Zoning: SF-1A Single Familv Residential District. SPIN Neighborhood #1 A presentation was not made on this item. Agenda Item No. 4F. ZA07-156, Preliminary Plat for Lots 1 - 8 Block 1 Kimball Lakes Office Park on property legally described as Tract 3D T. Mahan Survey Abstract No 1049 and located at 600 North Kimball Avenue. Current Zoning: S-P-2 Generalized Site Plan District and AG Agricultural District. SPIN Neighborhood #6. A presentation was not made on this item. Agenda Item No. 4G. Resolution No. 08-005, Approve and authorize publication of notice of intention to issue certificates of obligation for capital improvement projects A presentation was not made on this item. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION APPROVING AND AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION. Agenda Item No. 4H. ZA07-112, Site Plan for Lot 25R2 Block 1 Woodland Heights Addition on propertv located at 175 Westwood Drive. Current Zoning: 0-1 Office District. SPIN Neighborhood #8. The applicant requested to table this item until the February 5, 2008, City Council meeting. Agenda Item No. 41. Ordinance No. 480-536, 2nd Reading (ZA07-139) Zoning Change and Site Plan for Lots 1R1, 1R2, 2R1, 2R2, and 2R3 Block 3 Cornerstone Business Park Addition on property legally described as Lots 1 and 2R Block 3 Cornerstone Business Park Addition and located at 500 Silicon Drive and 510 Silicon Drive Current Zoning: 0-1 Office District. Requested Zoning: S-P-1 Detailed Site Plan District SPIN Neighborhood #7. The applicant requested to table this item until the February 5, 2008, City Council Meeting. Agenda Item No. 4J. Ordinance No. 480-545 1St Reading (ZA07-145) Zoning Change and Site Plan for Panera Bread and Bakery Cafe on Property being legally described as Lot 2, Block 1, Gumm Scifres and being located at 111 South Village Center Drive Current Zoninq: 0-1 Office District. Requested Zoning: S-P-1 Detailed Site Plan District SPIN Neighborhood #8. The applicant requested to table this item until the February 5, 2008, City Council Meeting. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 3 of 13 Agenda Item No. 9A. Award construction contract to Wilson Contractor Services, LLC for 20" water line improvements across East Southlake Boulevard at Carroll Avenue and 12" water line improvements on East Dove Road at State Highway 114 and provide for construction phase contingencies. Director Price presented this item to Council during the work session. Motion was made to approve consent agenda items 4A; 413; 4C; 4D; 4E; 4F subject to Plat Review Summary No. 2, dated December 28, 2007; 4G; to table item 4H to the February 5, 2008 City Council meeting; to table item 41 to the February 5, 2008 City Council meeting; to table item 4J to the February 5, 2008 City Council meeting; and 9A. Motion: Muzyka Second: Jones Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 REGULAR AGENDA Agenda Item No. 5. Public Forum. Mayor Wambsganss opened the public hearing. Kathy Mast spoke about flooding concerns in the Lake Crest Subdivision. Joe Mansen, 224 Canyon Lake Drive, Southlake, Texas and President of the Lake Crest Home Owner's Association, spoke about flooding in the Lake Crest Subdivision. Mayor Wambsganss closed the public hearing. Agenda Item No. 6A. Ordinance No. 923, 2nd Readinq, Adopt Ordinance to amend Chapter 4 "Animals" of the Code of Ordinances by amending Article II "Control and Care" to reflect recent changes in State Law related to the control and care of animals. Mayor Wambsganss introduced this item. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING ARTICLE II "CONTROL AND CARE" OF CHAPTER 4 "ANIMALS" OF THE CODE OF ORDINANCES RELATING TO ANIMAL RESTRAINT; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY FOR VIOLATIONS HEREOF; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN PAMPHLET FORM; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 4 of 13 Motion was made to approve Ordinance No. 923, 2"d Reading, Adopt Ordinance to amend Chapter 4 "Animals" of the Code of Ordinances by amending Article II "Control and Care" to reflect recent changes in State Law related to the control and care of animals. Motion: Jones Second: Morris Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 Agenda Item No. 6B. ZA07-114, Site Plan for Peloton Southlake Office Building, on property legally described as a portion of Tracts 1, 1A1 and 1E Richard Eads Survey Abstract No. 481 and located at 1200 Block of East State Highway 114 between North Carroll Avenue and North Kimball Avenue on proposed Grace Lane Current Zoning: NR-PUD Non-Residential Planned Unit Development District. SPIN Neighborhood #6 Deputy Director Killough presented this item in conjunction with item 6C. Applicant Murl Richardson made a presentation and answered Council's questions. No one spoke during the public hearing. Motion was made to approve ZA07-114, Site Plan for Peloton Southlake Office Building, specifically granting the requested variances; incorporating the applicant's presentation and slides presented tonight; noting there will be 100% screening of the parking along the State Highway 114 frontage road with plant material, etc., as discussed tonight in the presentation; accepting the applicant's agreement to use Little Gem Magnolias to replace the Vitex around the building and also at the front of the building and noting the applicant's agreement to use Yaupon Holly to replace the Vitex in other aspects of the landscaping; and subject to Site Plan Review Summary No. 5, dated December 12, 2007. Motion: Jones Second: Muzyka Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 Agenda Item No. 6C. Resolution No. 07-063 (ZA07-142) Specific Use Permit for multi- level parking garage on property legally described as a portion of Tracts 1 1A1 and 1 E Richard Eads Survey, Abstract No. 481 and also known as Lot 1 Block 4 Gateway Church - 114 Campus Addition and located on the north side of State Highway 114 at 1200 East State Highway 114 between North Carroll Avenue and North Kimball Avenue. Current Zoning: NR-PUD Non-Residential Planned Unit Development District SPIN Neighborhood #6. Deputy Director Killough presented this item in conjunction with item 6B. Applicant Murl Richardson made a presentation and answered Council's questions In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 5 of 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, GRANTING A SPECIFIC USE PERMIT FOR A MULTI-LEVEL PARKING GARAGE FOR NON-RESIDENTIAL PROPERTY ON PROPERTY WITHIN THE CITY OF SOUTHLAKE, TEXAS, BEING LEGALLY DESCRIBED AS TRACT 1 AND 1A1 AND A PORTION OF TRACT 1E, SITUATED IN THE R. EADS SURVEY, ABSTRACT NO. 481, BEING APPROXIMATELY 6.76 ACRES, MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A", AND AS DEPICTED ON THE APPROVED SITE PLAN ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B" AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Resolution No. 07-063, (ZA07-142) Specific Use Permit for multi-level parking garage as presented by the applicant including the applicant's presentation tonight and subject to the Site Plan Review Summary No. 5, dated December 12, 2007. Motion: Jones Second: Muzyka Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 Agenda Item No. 6D. Ordinance No. 480-541, 2nd Reading (ZA07-152 formerly ZA06- 045), Zoning Change and Concept Plan for a portion of Lot 1 Block 1 Arnold Estates and Lot 2132A, Block 1, Burnett Acres. The property is situated at 1275 Shady Oaks Drive. Current Zoning: RE Single Family Residential Estate District and SF-1A Single Family Residential District. Requested Zoning: SF-2 Single Family Residential District SPIN Neighborhood #1. Deputy Director Killough presented this item to Council in conjunction with item 6E. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: AN ORDINANCE AMENDING ORDINANCE NO. 480, AS AMENDED, THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS; GRANTING A ZONING CHANGE ON A CERTAIN TRACT OR TRACTS OF LAND WITHIN THE CITY OF SOUTHLAKE, TEXAS BEING LEGALLY DESCRIBED AS LOT 1B, BLOCK 1, ARNOLD ESTATES AND LOT 2132A, BLOCK 1, BURNETT ACRES ADDITION, BEING APPROXIMATELY 4.30 ACRES, AND MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A" FROM "RE" SINGLE FAMILY RESIDENTIAL ESTATE DISTRICT AND "SF-1A" SINGLE FAMILY RESIDENTIAL DISTRICT TO "SF-2" SINGLE FAMILY RESIDENTIAL DISTRICT, AS DEPICTED ON THE APPROVED CONCEPT PLAN ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B", SUBJECT TO THE SPECIFIC REQUIREMENTS CONTAINED IN THIS ORDINANCE; CORRECTING THE OFFICIAL ZONING MAP; PRESERVING ALL OTHER PORTIONS OF THE ZONING ORDINANCE; DETERMINING THAT THE PUBLIC INTEREST, MORALS AND GENERAL WELFARE DEMAND THE ZONING CHANGES AND AMENDMENTS HEREIN MADE; REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 6 of 13 PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY FOR VIOLATIONS HEREOF; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Ordinance No. 480-541, 2nd Reading (ZA07-152, formerly ZA06-045), Zoning Change and Concept Plan for a portion of Lot 1, Block 1, Arnold Estates and Lot 2B2A, Block 1, Burnett Acres, as presented. Motion: Jones Second: Morris Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 Agenda Item No. 6E. ZA06-046, Plat Revision for proposed Lot 2B2AR Block 1 Burnett Acres Addition; being a revision of a portion of Lot 1, Block 1, Arnold Estates Addition and Lot 2B2A, Block 1, Burnett Acres Addition. The property is located at 520 West Highland Street and 1275 Shady Oaks Drive. Current Zoning: RE Single Family Residential Estate District and SF-1A Single Family Residential District. Proposed Zoning: SF-2 Single Family Residential District. SPIN Neighborhood #11. Deputy Director Killough presented this item to Council in conjunction with item 6D. Motion was made to approve ZA06-046, Plat Revision for proposed Lot 2132AR, Block 1, Burnett Acres Addition, subject to Plat Review Summary No. 1, dated March 23, 2006 Motion: Jones Second: Muzyka Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved- 6-0 Agenda Item No. 6F. Resolution No. 08-001, (ZA07-154) Specific Use Permit for Kroger Tent Sale for Valentine's Floral Tent on property legally described as Lot 3 Block 1, Village Center Addition, located at 2110 East Southlake Boulevard Current Zoninq: C-3 General Commercial District. SPIN Neighborhood #8. Chief Planner Killough presented this item to Council. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, GRANTING A SPECIFIC USE PERMIT FOR A TENT FOR THE PURPOSE OF PROMOTING RETAIL SALES ON PROPERTY WITHIN THE CITY OF SOUTHLAKE, TEXAS, LOCATED AT 2110 EAST SOUTHLAKE BOULEVARD, BEING LEGALLY DESCRIBED AS A PORTION OF LOT 3, BLOCK 1, VILLAGE CENTER ADDITION, REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 7 of 13 PHASE 1, MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A", AND AS DEPICTED ON THE APPROVED SITE EXHIBIT ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B" AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Resolution No. 08-001, (ZA07-154), Specific Use Permit for Kroger Tent Sale for Valentine's Floral Tent. Motion: Jones Second: Muzyka Ayes: Jones, Morris, Muzyka, Stansell, Wambsganss Nays: Hill Approved: 5-1 Agenda Item No. 6G. Resolution No. 08-002, (ZA07-160), Specific Use Permit for the Art in the Square Mass Gathering Event held annually on property described as Southlake Town Square, Phase I, generally located at the northeast corner of North Carroll Avenue and East Southlake Boulevard. Current Zoning: DT Downtown District. SPIN Neighborhood #8. Deputy Director Killough presented this item to Council. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, GRANTING A SPECIFIC USE PERMIT FOR A MASS GATHERING EVENT FOR THE ADDITION OF A CHILDREN'S FUN ZONE DURING ART IN THE SQUARE ON PROPERTY WITHIN THE CITY OF SOUTHLAKE, TEXAS, LOCATED NEAR THE NORTHEAST CORNER OF THE INTERSECTION OF EAST SOUTHLAKE BOULEVARD AND NORTH CARROLL AVENUE, BEING LEGALLY DESCRIBED AS LOT 3, BLOCK 1 R, SOUTHLAKE TOWN SQUARE ADDITION, PHASE I, MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A", AND AS DEPICTED ON THE APPROVED SITE EXHIBIT ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B" AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Resolution No. 08-002, (ZA07-160), Specific Use Permit for the Art in the Square Mass Gathering Event as presented. Motion: Muzyka Second: Jones Ayes: Hill, Jones, Morris, Muzyka, Stansell, Wambsganss Nays: None Approved: 6-0 Mayor Wambsganss called for a break at 8:13 p.m. Mayor Wambsganss left the meeting during the break due to illness. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 8 of 13 Mayor Pro Tern Morris reconvened the meeting at 8:28 p.m. Agenda Item No. 6H. Resolution No. 08-003, (ZA07-161) Specific Use Permit for The Wine Loft on property legally described as Lot 2, Block 22, Southlake Town Square Addition, located north of East Southlake Boulevard between Central and Summit Avenues. Current Zoning: DT Downtown District. SPIN Neighborhood #8. Chief Planner Killough presented this item to Council. Applicants Frank Bliss and Ricky Dudley, 4529 Mahogany Lane, Copper Canyon, Texas made a presentation and answered Council's questions. In accordance with Section 4.21 of the City Charter, the caption for this item is listed as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, GRANTING A SPECIFIC USE PERMIT FOR A BAR OR TAVERN ON PROPERTY WITHIN THE CITY OF SOUTHLAKE, TEXAS, LOCATED AT 1512 EAST SOUTHLAKE BOULEVARD, BEING LEGALLY DESCRIBED AS A PORTION OF LOT 2, BLOCK 22, SOUTHLAKE TOWN SQUARE, MORE FULLY AND COMPLETELY DESCRIBED IN EXHIBIT "A", AND AS DEPICTED ON THE APPROVED SITE EXHIBIT ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "B" AND PROVIDING AN EFFECTIVE DATE. No one spoke during the public hearing. Motion was made to approve Resolution No. 08-003, (ZA07-161), Specific Use Permit for The Wine Loft on property legally described as Lot 2, Block 22, Southlake Town Square Addition, for the duration of the lease for The Wine Loft and any extensions of that lease that this particular tenant may have. Motion: Jones Second: Muzyka Ayes: Hill, Jones, Morris, Muzyka, Stansell Nays. None Approved: 5-0 Agenda Item No. 61. ZA07-164, Revised Site Plan for Bowen Building on property legally described as Lots 18 - 20, Block 1, Oaks Addition located at 945 Casey Court and 1110 East State Highway 114. Current Zoning: S-P-1 Detailed Site Plan District SPIN Neighborhood #6. Deputy Director Killough presented this item to Council. Applicant Rob Adams from Adams Engineering, 500 Nolen Drive, Southlake, Texas, made a presentation and answered Council's questions. No one spoke during the public hearing. Motion was made to approve ZA07-164, Revised Site Plan for Bowen Building on property legally described as Lots 18 - 20, Block 1, Oaks Addition, located at 945 Casey Court and 1110 East State Highway 114 as presented by staff and by the applicant specifically relating to the requirement that the applicant connect lines to and REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 9 of 13 extend lines to adjacent property within 120 days of sewer being made available adjacent to the boundary of this property. Motion: Jones Second: Muzyka Ayes: Hill, Jones, Morris, Muzyka, Stansell Nays: None Approved: 5-0 Councilmember Jones abstained from the next item since he has a substantial interest in the property. Councilmember Jones left the Council Chambers. Agenda Item No. 7A. Ordinance No. 480-542, 1St Reading (ZA07-129), Zoning Change and Site Plan for Southlake Villa Offices on property legally described as Tract 3, W.W. Hall Survey, Abstract No. 687 and located at 310 East Southlake Boulevard. Current Zoning: AG Agricultural District. Requested Zoning: S-P-1 Detailed Site Plan District. SPIN Neighborhood #10. Deputy Director Killough presented this item to Council. Applicant Skip Blake from Blake Architects made a presentation and answered Council's questions. Mayor Pro Tern Morris allowed the public to speak. Patti and Todd Weber, 823 Pearl Drive, Southlake, Texas, spoke in opposition. Carolyn Johnston, 817 Pearl Drive, Southlake, Texas, spoke in opposition. John Cusack, 917 Emerald Boulevard, Southlake, Texas, spoke in opposition. Tom Orzech, 924 Emerald Boulevard, Southlake, Texas, spoke in opposition. Greg Standerfer, 201 Sheffield Court, Southlake, Texas, spoke in support. Chris Ferris, 404 Oxford Court, Southlake, Texas, spoke in support. Jeffrey Hauser, 911 Emerald Boulevard, Southlake, Texas, spoke in opposition. Isaac Philip supports the development but does not want two stories. The following people submitted cards in opposition but did not wish to speak: Shirley Petras, 808 Pearl Drive, Southlake, Texas, and Debbie Orzech, 924 Emerald Boulevard, Southlake, Texas. After discussion, Mr. Blake requested to table this item to allow time to further review the items discussed tonight and to attempt to address some of the neighbor's concerns. Motion was made to table Ordinance No. 480-542, 1St Reading (ZA07-129), Zoning Change and Site Plan for Southlake Villa Offices to the February 5, 2008, City Council meeting. Motion: Muzyka Second: Hill Ayes: Hill, Morris, Muzyka, Stansell Nays: None Approved: 4-0 REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 10 of 13 Agenda Item No. 7B. Ordinance No. 480-544 1St Reading (ZA07-087) Zoning Change and Site Plan for Mendez Medical Offices on property legally described as Tract 3D3A W.W. Hall Survey, Abstract No. 695 and located at 918 East Southlake Boulevard. Current Zoning: AG Agricultural District. Requested Zoning: S-P-1 Detailed Site Plan District. SPIN Neighborhood #10. Deputy Director Killough presented this item to Council. Applicant Dr. Mendez of Mendez Ltd. and architect Skip Blake of Blake Architects answered Council's questions. Motion was made to approve Ordinance No. 480-544, 1St Reading (ZA07-087), Zoning Change and Site Plan for Mendez Medical Offices granting the requested variances, subject to Site Plan Review Summary No. 6, dated January 9, 2008, and accepting the applicant's willingness to attempt to save a 22 foot oak at the northwest corner of the proposed building. Motion: Stansell Second: Muzyka Ayes. Jones, Morris, Muzyka, Stansell Nays: None Approved: 4-0 Agenda Item No. 7C. Ordinance No. 480-546, 1St Reading (ZA07-067) Zoning Change and Site Plan for Lot 2R, Block 1, Gorbutt Addition on property being legally described as Lot 2A, Block 1, Gorbutt Addition and being located at 1575 East Southlake Boulevard. Current Zoning: 0-1 Office District. Requested Zoning: S-P-1 Detailed Site Plan District. SPIN Neighborhood #8. Deputy Director Killough presented this item to Council. Terry Wilkinson and Wade Strain from 3BMW Development, 640 West Southlake Boulevard, Southlake, Texas, answered Council's questions. Mayor Pro Tern Morris read a comment card from Pattie Minder, 223 Eastwood Drive, Southlake, Texas. Motion was made to approve Ordinance No. 480-546, 1St Reading (ZA07-067) Zoning Change and Site Plan for Lot 2R, Block 1, Gorbutt Addition, granting requested variances and subject to Site Plan Review Summary No. 6, dated January 9, 2008; and specifying the property along Southlake Boulevard will be landscaped with a three to four foot rolling berm; accepting applicant's agreement to provide additional detail on the detention by the second reading; and accepting applicant's agreement to work with the owner of the adjacent animal clinic property on the fencing requirements and will provide detail at the second reading. Motion: Stansell Second: Muzyka Ayes: Hill, Morris, Muzyka, Stansell Nays: None Approved: 4-0 Councilmember Jones returned to the Council Chambers. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 11 of 13 Agenda Item No. 7D. Ordinance No. 480-547 1St Reading (ZA07-131) Zoning Change and Site Plan for Cantex Senior Communities on property legally described as Lots 4 and 5 and a portion of Lot 3, Block 1, Stonebridge Park Addition and located at 150, 170, and 175 Stonebridge Lane. Current Zoning: S-P-2 Generalized Site Plan District Requested Zoning: S-P-1 Detailed Site Plan District. SPIN Neighborhood #15. Deputy Director Killough presented this item to Council in conjunction with item 7E. Applicants Peter Longo with Cantex Communities, Gaylon Lang and Ryan McGuire made a presentation and answered Council's questions. Motion was made to approve Ordinance No. 480-547, 1St Reading (ZA07-131), Zoning Change and Site Plan for Cantex Senior Communities granting the requested variances; subject to Site Plan Review Summary No. 3, dated December 28, 2007; and stating that, by the second reading, the applicant will provide to Council information regarding employee shift changes, number of employees, and information on traffic patterns that are normally experienced. Motion: Jones Second: Stansell Ayes: Hill, Jones, Morris, Muzyka, Stansell Nays: None Approved: 5-0 Agenda Item No. 7E. Ordinance No. 480-548, 1St Reading (ZA07-132) Zoning Change and Concept Plan for Stonebridge Park on property legally described as Lot 2 and a portion of Lot 3, Block 1, Stonebridge Park Addition, located at 155 and 175 Stonebridge Lane. Current Zoning: S-P-2 Generalized Site Plan District Requested Zoninq: S-P-2 Generalized Site Plan District. SPIN Neighborhood #15. Deputy Director Killough presented this item to Council in conjunction with Item 7D. Applicant Ryan McGuire made a presentation and answered Council's questions. Motion was made to approve Ordinance No. 480-548, 1St Reading (ZA07-132), Zoning Change and Concept Plan for Stonebridge Park granting the requested variances and subject to Concept Plan Review Summary No. 3, dated December 28, 2007, and the recommendations of the Planning and Zoning Commission with respect to the day care/nursery and the 60% impervious coverage. Motion: Jones Second: Stansell Ayes: Hill, Jones, Morris, Muzyka, Stansell Nays: None Approved: 5-0 Agenda Item No. 11. Meetinq adjourned. Mayor Pro Tern Morris adjourned the meeting at 11:39 p.m. *An audio recording of this meeting will be permanently retained in the City Secretary's Office. REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 12 of 13 Andy Wambsganss Mayor ATTEST: 00 .00 e Lori Payne : a = City Secretary v'•.•• REGULAR CITY COUNCIL MEETING MINUTES, JANUARY 15, 2008 Page 13 of 13 CONFLICT OF INTEREST AFFIDAVIT THE STATE OF TEXAS § COUNTY OF TARRANT § I, -S►~l~/~ ~ as a member of the 67_~/ (-~004J C~ L- of the City of Southlake, make this affidavit and hereby on oath state the following: I, my spouse, and/or a person or persons related to me within the first degree of consanguinity or affinity, have a substantial interest in a business entity or real property as defined in Chapter 171, Texas Local Government Code, and/or City of Southlake Ordinance No. 635 and a vote is to be taken or a decision is to be made that will have a special economic effect on this business entity or real property. The agenda item affecting this business entity or real property is: -7 ~-t COMPLETE (A) or (B): (A) The business entity is (name); or (B) The real property is located at: 0/ 7_ ,_'~e61r1-AkeC - --FL LEA I have a substantial interest because I, my spouse, and/or a person or persons related to me within the first degree of consanguinity or affinity have the following relationship to the business entity or real property which will likely be affected by the vote on the above-referenced agenda item: (check all which are applicable) Ownership of 10% or more of the voting stock or shares of the business entity. Ownership of 10% or more or $5,000 or more of the fair market value of the business entity. Funds received from the business entity exceed 10% of gross income for the previous year. Hold a position of member of the board of directors or other governing board of the business entity. Serve as an elected officer of the business entity. An employee of the business entity. Creditor, debtor or guarantor of the business entity in the amount of five thousand dollars ($5,000.00) or more. Property of the person has been pledged to the business entity or is subject to a lien in favor of the siness entity in the amount of five thousand dollars ($5,000.00) or more. Have an equitable or legal ownership of real property with a fair market value of at least $2,500. Other: Upon filing of this affidavit with the City Secretary, I affirm that I will abstain from voting on any decision and from any further participation by discussion or debate regarding the above-referenced agenda item. I also affirm that this affidavit is being submitted to the City Secretary before the start of the meeting at which the agenda item in question is being addressed or as soon as practicable once I realized a potential conflict exists. • Signed this day of J~C N 1 -a ( , 20 d ~ Signature f Offi al the State of Texas § County of Tarrant § Before Se, Lf*( P6LIOe- on this day personally appeared 01ne5 kn wn to me (or proved to me on the oath of or through (description of identity card or other document) to be the person whose name is subscribed to the foregoing instrument and, after first being by me duly sworn, stated that the statements made in this affidavit are within his personal knowledge and are true and correct. f Given under my hand and seal of office this ~ day of ~aptvaw (SEAL) \~~;,oa,u~~~uuAnunnplii~,, , P p~~• V NF Notary Public in and f the State of Texas i\ Z h a '9lF Op ~ ::'a .,FXPIR~~'`A a I0 '2 111111111111NN~~ SOUTHLAI<,,.-E TEXAS r~j 1~lrr~r1~ r~ X11 ✓~~ry~l 1) 2DO7 Allp Innovation 0 Integrity 0 Accountability 0 Commitment to Excellence 0 Teamwork r~err■rr~r~■ Investment Portfolio Summary For the Quarter Ended December 31, 2007 Prepared By First Southwest Asset Management c~ o 0 City of Southlake Quarterly Investment Report Investment Officers' Certification For the Quarter Ended December 31, 2007 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. First Southwest Asset Management rage 2 of 13 I 0 City of Southlake FIXED INCOME DISTRIBUTION December 31, 2007 Summary Information Totals Weighted Averages Par Value 103,613,177.67 Average YTM 4.815 Market Value 103,547,987.42 Average Maturity (yrs) 0.6 Adjusted Cost 103,323,968.15 Average Coupon 4.139 Net Gain/Loss 224,019.27 Average Duration 06 Annual Income 4,281,220.69 Number of Issues 26 Distribution by Maturity % Boud Average Average Average Maturity Number Mkt Value Holdings Y T M Coupon Duration 0 - 3 Months 5 38,748,177.67 37.4 4.737 4.382% 0.050 3 - 6 Months 4 9,855,690.00 9.5 5.160 0.655% 0.371 6 - 9 Months 5 19,799,711.25 19.1 4.986 4.769% 0.604 9 - 12 Months 6 17,509,687.50 16.9 4.551 4.293% 0.855 1 - 2 Years 5 12,613,471.00 12.2 4 917 4.594% 1.359 2 - 3 Years 2 5,021,250.00 4.8 4.953 4932% 2.557 First Southwest Asset Management Page 3 of 13 ® 0 City of Southiake Portfolio Composition December 31, 2007 Portfolio Composition by Security Type Portfolio Composition by Issuer ■ FHLB El FFCB ❑ Commercial 27.4% 6.8% Paper ■ PEFCO ■ Agency 7.6% 5.8% Securities 65.6% ❑ FHLMC ❑ Commercial 6.3% Paper 7.6% r l~ ❑ TexStar ®Pools & 10.3% ~ Money ■ FNMA ~ I Markets 19.3% 26.8% \\.❑TexPool 16.6% I Portfolio Composition by Maturity (Percentage) Portfolio Composition by Maturity (Amount) ■0-3 Months $45 37.4% ❑ 3-6 Months 9.5% $40 $35 $30 w o $25 $20 $15 ❑2-3 Years ■G-9 Months $10 4.8% 19.1% $5 ■ 1-2 Years 0-3 Months 3-6 Months 6-9 Months 9-12 1- 2 2- 3 Over 3 Months Years Years Years 12.2% ❑9-12 Months 16.9% dl j First Southwest Asset Management rage 4 of 13 © Q City of Southlake Benchmark Comparison December 31, 2007 6.000% 5.000% 4.000% tSouthlake Portfolio Month-End Wtd Avg Yld 3.000% -f-TexPool Monthly Average -+-3-Mo CMT (3-Month Moving Avg) 2.000% --6-Mo CMT (6-Month Moving Avg) --1-Yr CMT (12-Month Moving Avg) 1.000% m co co co co r` r• r` r, r- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 v, Q v > ci c a co m O_ C '5 0) W o Q cn Z 0 u- Q Q rn 0 Z 0 Notes: 1.) 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 H.15 and represents an average of all actively traded Treasury securities having that time remaining until maturity. This is a standard industry benchmark for Treasury securities. 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. First Southwest Asset Management Page 5 of 13 City of Southlake DETAIL OF SECURITY HOLDINGS As of December 31, 2007 Security Security Settlement Maturity Next Call Purchase Purchase Market Market Accrued Days to Days to field to Yield to Description CUSIP Coupon Dale Dale Dale Par Value Price Cost Book Value Price Value Interest Maturity Next Call Maturity Next Call eneral Operating BXSTAR tcxstar 4.543 81201,071.70 100 000 3,201,071.70 8,201,071 70 100.000 8,201,071.70 0.00 1 4 543 BXPOOL texpoul 4.556 16,363,059.53 100.000 16,363,059.58 16,363,059.58 100.000 16,363,059.58 0.00 1 4.556 14N1A 31359NII171 5100 09-12-06 02-22-08 3,000,000.00 99737 2,992,110.00 2,999.226.60 100.062 3,001,875.00 54,825.00 53 5.289 NMA 3136F6YB9 4.000 01-17-06 02-25-03 3,000,000.00 98.423 2,952,690.00 2,996,658.23 99.906 2,997,187.50 42,000.00 56 4.794 PCB 31331TWIIO 3.240 06-02-06 03-17-03 01-17-08 5,000,000.00 96.364 4,818,200.00 4,978,89513 99.719 4,985,937.50 46,800.00 77 17 5.393 5.612 L• CAPITAL CORP CP 369591ID38 0.000 07-10-07 04-03-08 3,000,000.00 96.162 2,334,871.67 2,960,043.75 98.362 2,965,848.00 0.00 94 5 435 lurgan SIMilcy CP 61745AE54 0.000 10-24-07 05-05-08 2,000,000.00 97.419 1,948,374.44 1,966,736.11 93.337 1,966,750.00 0.00 126 4 985 HLMC 3128XICB9 3.250 02-23-07 06-04-08 01-04-08 2,000,000.00 97.610 1,952,200.00 1,984,065.02 99.344 1,986,875.00 4,875.00 156 4 5.199 6.129 C CAPITAL CORP CP 369591 IFS 1 0.000 10-02-07 06-26-03 3,000,000.00 96.494 2,894,810.00 2,930,527.50 97.874 2,936,217.00 0 00 173 4.949 CFCO 742651CJ9 5 870 06-04-07 07-31-09 6,000,000.00 100.653 6,039,180.00 6,019,639.29 100.875 6,052,500.00 147,728.33 213 5.259 1ILMC 3128X417173 4.500 11-28-07 03-04-03 2,500,000.00 100.168 2,504,200.00 2,503,628 80 100.082 2,502,055.00 45,937.50 217 4.240 FILB 3133X6PB6 4 050 11-15-07 03-13-09 02-13-08 3,250,000 00 99.787 3,243,093.75 3,244,287.11 99.812 3,243,906.25 17,550 00 226 44 4.350 4.929 HLB 3133XON47 4.000 07-27-06 08-25-03 01-25-08 3,000,000 00 97.089 2,912,670.00 2,972,839.60 99.731 2,993,437.50 42,000.00 238 25 5.500 6 067 HLB 3133XCX40 4.500 05-03-07 09-03-03 5,000,000.00 99 279 4,963,930.00 4,931,711.33 100.156 5,007,812.50 70,625.00 252 5.056 HLB 3133XBJPI 4.570 09-18-07 10-17-08 3,000,000.00 99.854 2,995,620.00 2,996,782.78 100.281 3,008,437.50 23,181.67 291 4.707 NMA 31398AAF9 4.900 09-13-07 11-03-08 3,000,000.00 100.223 3,006,690.00 3,004,925.93 100.594 3,017,812.50 23,683.33 308 4.691 11LB 3133XNAMI 4.400 11-21-07 11-21-03 05-21-03 3,000,000.00 100.000 3,000,000.00 3,000,000.00 100.094 3,002,812.50 14,666.67 326 142 4.400 4.400 HLB 3133XNH115 4.400 11-30-07 11-28-08 05-28-08 2,000,000.00 100.000 2,000,000.00 2,000,000.00 100.094 2,001.875.00 7,577.78 333 149 4.400 4.400 NMA 3136F3VD5 3210 10-02-07 11-28-03 05-23-08 3,000,000.00 93.306 2,949,180.00 2,960,136.72 99.219 2,976,562.50 8,827.50 333 149 4330 5.874 HLB 3133XNKNB 4.300 12-10-07 12-10-08 06-10-08 3,500,000.00 100.000 3,500,000.00 3,500,000.00 100.062 3,502,187.50 8,779.17 345 162 4 300 4 300 NMA 313591V14143 5.250 02-01-07 01-29-09 01-29-08 3,000,000.00 99.805 2,994,150.00 2,996,837.41 100.094 3,002,812.50 66,500.00 395 29 5.354 5 454 NMA 31359NI4113 5.250 04-05-07 01-29-09 01-29-08 2,000,000.00 99 988 1,999,760.00 1,999,357.94 100.094 2,001,875 00 44,333.33 395 29 5.252 5.255 HLB 3133X31[]5 3.800 02-23-07 02-03-09 01-03-08 21600,000.00 97.530 2,535,780.00 2,563,985.67 99.731 2,594,31250 40,617.78 400 3 5.150 6.803 l4LMC 3128X6UV6 4.500 12-17-07 12-17-09 06-17-03 21000,000.00 100.000 2,000,000.00 2,000,000 00 100.255 2,005,096.00 3,500.00 717 169 4.500 4.500 1ILB 3133XNSD2 4.250 12-13-07 12-13-09 12-18-03 3,000,000.00 100.000 3,000,000.00 3,000,000.00 100.312 3,009,375.00 4,604.17 718 353 4.250 4.250 FCB 31331X71-0 4.800 10-24-07 10-15-10 04-15-03 2,000,000.00 100.000 2,000,000.00 2,000,000.00 100.219 2,004,375.00 20,266.67 1,019 106 4 800 4 794 NMA 31398AHX3 5.020 10-15-07 10-15-10 10-15-08 3,000,000 00 100.000 3,000,000.00 3,000,000.00 100 562 3,016,875.00 31,793.33 1,019 289 5 020 5.020 4.126 100,414,131.23 99.247 99,651,641.14 100,124,921.76 99.938 100,348,941.03 775,672.22 239 4823 'arks Development Corporation 'GXSTAR tcxstar 4.543 2,417,453.41 100 000 2.417.453.41 2,417,453.41 100.000 2,417,453.41 0.00 I 4.543 'CXPOOL texpoul 4.556 781,592.98 100.000 781,592.93 781,592 98 100.000 781,592.98 0.00 1 4.556 4.546 3,199,046.39 100000 3,199,046.39 3,199,04639 100.000 3,199,046.39 0.00 I 4546 ;RAND TOTAL 4.139 IU3,613,177.67 99.270 102,850,687.53 103,323,968.15 99.940 103,547,987.42 775,672.22 232 4.815 First Southwest Asset Management Page 6 of 13 City of Southlake CHANGE IN VALUE From 09-30-07 To 12-31-07 Security Maturity 09-30-07 09-30-07 Additions Withdrawals Interest Accrued 12-31-07 12-31-07 Description CUSIP Coupon Date Book Value Market Value Purchases Sales Received Interest Book Value Market Value General Operating TCXPOOL texpool 4.556 12,036,633.28 12,036,633.28 7,212,483.30 -2,936,062.00 149,476.43 0.00 16,363,059.53 16,363,059.5 TEXSTAR lexstar 4.543 11,095,183.93 11,095,133.93 62,942.68 -2,957,054.91 105,88777 0.00 8,201,07170 8,201,071.70 GE CAPITAL CORP CP 36959JX24 0.000 10-02-07 2,999,571.67 2,999,208.00 0.00 -3,000,000.00 0.00 0.00 0.00 0.00 FNMA 313GF5PB1 3.020 10-12-07 1,993,511.87 1,993,750.00 0.00 -2,030,200.00 0 00 0.00 0 00 0 00 FIILNIC 3128X4SL6 4 750 10-24-07 1,999,935 02 1,999,524.00 0.00 -2,047,500.00 0.00 0.00 0.00 0.00 FHLMC 3134A4VF3 4.375 11-16-07 2,996,533.78 2,997,187.50 0.00 -3,065,625.00 0.00 0.00 0.00 0.00 FHLB Step-Up Note 3133X9FZ8 5.000 11-28-07 2,499,367 45 2,500,000.00 0.00 -2,531,250.00 0.00 0.00 0.00 0.00 FNMA 31359MH71 5100 02-22-08 2,997,858.29 3,001,875.00 0.00 0.00 0.00 54,825.00 2,999,226.60 3,001,875.00 FNMA 3136F6YB9 4.000 02-25-03 2,990,992.90 2,987,812.50 0.00 0.00 0.00 42,000.00 2,996,658.28 2,997,137.50 FFCB 31331TWI-10 3.240 03-17-08 4,953,34712 4,964,062.50 0.00 0.00 0.00 46,800.00 4,978,895.13 4,985,937.50 GC CAPITAL CORI' CP 36959HD38 0.000 04-03-08 2,920,527 09 2,925,135.00 0.00 0.00 0.00 0.00 2,960,048.75 2,965,348.00 Morgan Stanley CP 61745AE54 0.000 05-05-08 0.00 0.00 1,948,374 44 0.00 0.00 0.00 1,966,736.11 1,966,750.00 FHLMC 3128XIEB9 3.250 06-04-08 1,974,663.92 1,980,000.00 0.00 0.00 32,500.00 4,875.00 1,984,065.02 1,986,875.00 GE CAPITAL CORP CP 369591-IFS 1 0.000 06-26-03 0.00 0.00 2,894,810.00 0.00 0.00 0 00 2,930,527.50 2,936,217.00 PEFCO 742651CJ9 5.370 07-31-03 6,028,15941 6,053,125.00 0.00 0.00 0.00 147,723.33 6,019,639.29 6,052,500.00 FHLMC 3128X4FF3 4.500 03-04-08 0.00 0.00 2,539,825.00 0 00 0.00 45,937.50 2,503,628.80 2,502,055.00 FHLB 3133X6PB6 4.050 08-13-03 0 00 0.00 3,243,825.00 0 00 0.00 17,550.00 3,244,287 11 3,243,906.25 FHLB 3133XON47 4.000 08-25-08 2,962,275 47 2,982,187.50 0.00 0.00 0,00 42,000.00 2,972,839.60 2,993,437.50 FHLB 3133XCX40 4.500 09-08-08 4,974,979.62 4,993,750.00 0.00 0.00 0.00 70,625 00 4,981,711.83 5,007,812.50 FHLB 3133XBJPI 4.570 10-17-03 2,995,763,96 3,000,000.00 0.00 0.00 63,550.00 28,181 67 2,996,782.78 3,008,437.50 FNN,IA 31398AAF9 4.900 11-03-08 3,006,401.33 3,011,250.00 0.00 0.00 73,500.00 23,683.33 3,004,925.93 3,017,812.50 FHLB 3133XNAMI 4400 11-21-08 0.00 0.00 3,000,000.00 0.00 0.00 14,666.67 3,000,000.00 3,002,312.50 FHLB 3133XNH115 4 400 11-28-08 0.00 0 00 2,000,000.00 0.00 0 00 7,57778 2,000,000.00 2,001,875.00 FNMA 3136F3VD5 3.210 11-28-08 000 0.00 2,982,350.00 000 48,150.00 8,827.50 2,960,13672 2,976,562.50 F14LB 3133XHXG2 5.350 12-05-08 3,499,690 75 3,503,231.25 0.00 -3,593,625 00 0.00 0 00 0.00 0.00 FI-ILB 3133XNKN8 4.300 12-10-08 0.00 0.00 3,500,000.00 0.00 0.00 8,77917 3,500,000.00 3,502,187.50 FNMA 31359M41-13 5.250 01-29-09 4,995,921.85 5,010,937.50 0.00 0.00 0.00 110,833.33 4,996,695.35 5,004,687.50 FIILB 3133X31IJ5 3.300 02-03-09 2,555,668.61 2,576,437.50 0.00 0.00 0.00 40,617 78 2,563,985.67 2,594,312.50 FIILB 3133XLZB2 5.500 02-13-09 3,000,000.00 3,003,750.00 0.00 -3,041,250.00 0.00 0.00 0.00 0.00 FHLB 3133XKA47 5.375 03-19-09 4,999,065 44 5,009,375 00 0.00 -5,067,187.50 0.00 0.00 0 00 0.00 FI-ILMC 3128X6UV6 4.500 12-17-09 0.00 0.00 2,000,000.00 0.00 0.00 3,500.00 2,000,000.00 2,005,096.00 FHLB 3133XNSD2 4.250 12-18-09 0.00 0 00 3,000,000.00 0 00 0.00 4,604.17 3,000,000.00 3,009,375.00 FFCB 31331X71-0 4.800 10-15-10 0.00 0.00 2,002,400 00 0.00 0.00 20,266.67 2,000,000.00 2,004,375.00 FNMA 31398A1IX3 5 020 10-15-10 0 00 0 00 3,000,000 00 0 00 0 00 31,793.33 3,000,000 00 3,016,875.00 90,531,612.78 90,684,470.46 39,387,010.42 -30,269,754 41 473,064.25 775,672.22 100,124,921.76 100,348,941.03 Parks Development Corporation TEXPOOL texpool 4.556 772,342.18 772,342.18 9,250.80 0.00 9,250.80 0.00 781,592.98 781,592.98 TEXSTAR texslar 4.543 2,388,956.22 2,388,956.22 28,497 19 0.00 28,497 19 0 00 2,417,453.41 2,417,453.41 3,161,293.40 3,161,293.40 37,747.99 000 37,747.99 0.00 3,199,046.39 3,199,046.39 GRAND TOTAL 93,692,911.18 93,845,768.86 39,424,758.41 -30,269,754.41 515,812.24 775,672.22 103,323,968.15 103,547,987.42 First Southwest Asset Management Page 7 0113 City of SouthLake General Operating INVESTMENT TRANSACTIONS From 10-01-07 To 12-31-07 Settle Mature Call Unit Date Security CUSH' Coupon Dale Date Quanlily Price Amount PURCHASES 10-02-07 GL CAPITAL CORP CP 369591 IFS 1 0.000 06-26-08 3,000,000 96 494 2,894,810.00 10-02-07 FNMA 3136173VD5 3.210 11-28-08 05-28-03 3,000,000 98.306 2,949,180 00 Accrued Interest 33,170.00 10-15-07 FNMA 31398AHX3 5 020 10-15-10 10-15-03 3,000,000 100 000 3,000,000.00 10-24-07 FFCB 31331X7L0 4.800 10-15-10 04-15-08 2,000,000 100.000 2,000,000 00 Accrued Interest 2,400.00 10-24-07 Morgan Stanley CP 61745AE54 0 000 05-05-08 2,000,000 97 419 1,948,374 44 11-15-07 FHLB 3133X6PB6 4.050 08-13-08 02-13-08 3,250,000 99 787 3,243,093 75 Accrued Interest 731.25 11-21-07 F14LB 3133XNAM1 4400 11-21-08 05-21-08 3,000,000 100.000 3,000,000.00 11-28-07 FHLMC 3128X4FF3 4.500 08-04-08 2,500,000 100 168 2,504,200 00 Accrued Interest 35,625.00 11-30-07 FHLB 3133XNI-IH5 4 400 11-28-08 05-28-08 2,000,000 100.000 2,000,000.00 12-10-07 F1-1LB 3133XNKN8 4.300 12-10-08 06-10-08 3,500,000 100.000 3,500,000 00 12-17-07 F1-ILMC 3128X6UV6 4.500 12-17-09 06-17-08 2,000,000 100 000 2,000,000 00 12-18-07 FHLB 3133XNSD2 4.250 12-18-09 12-18-08 3,000,000 100.000 3,000,000 00 32,111,584 44 CALLS 11-16-07 PIILB 3133XLZB2 5.500 02-13-09 11-16-07 3,000,000 100000 3,000,000.00 Accrued Interest 41,250.00 12-05-07 17141,13 3133XHXG2 5.350 12-05-08 12-05-07 31500,000 100.000 3,500,000.00 Accrued Interest 93,625 00 12-19-07 Fl-ILB 3133XI A47 5.375 03-19-09 12-19-07 5,000,000 100 000 5,000,000 00 Accrued Interest 67,187.50 11,702,062.50 MATURITIES 10-02-07 GE CAPITAL C010 CP 36959JX24 0 000 10-02-07 3,000,000 100.000 3,000,000 00 10-12-07 FNMA 31361751'13 1 3 020 10-12-07 2,000,000 100 000 2,000,000.00 Accrued Interest 30,200.00 10-24-07 FIILMC 3128X4SL6 4 750 10-24-07 04-24-06 2,000,000 100.000 2,000,000.00 Accrued Interest 47,500.00 11-16-07 FHLMC 3134A4VF8 4.375 11-16-07 3,000,000 100.000 3,000,000 00 Accrued Interest 65,625 00 11-28-07 FHLB Step-Up Note 3133X9FZ8 5 000 11-28-07 11-28-06 2,500,000 100.000 2,500,000 00 Accrued Interest 31,250 00 12,674,575 00 First Southwest Asset Management Page 8 of 13 Cary of Soulhluke EARNED INCOME From 09-30-07 To 12-31-07 Beginning Ending Adjusted Accrued Purchased Sold Interest Earned Accrued Amortization/ Earned Interest Interest Interest Received Interest Interest Accretion Income General Operating TEXSTAR (tcxstar) 0.00 0.00 0.00 105,887 77 105,887 77 0 00 0 00 105,887 77 TEXPOOL (texpool) 0.00 0 00 0.00 149,476 48 149,476.48 0.00 0.00 149,476.48 GB CAPITAL CORI' CP 0 000% Due 10-02-07 (36959jx24) 0 00 0 00 0 00 0 00 0 00 0 00 428.33 428.33 FNMA 3.020% Due 10-12-07 (3136f5pb1) 28,354 44 0.00 30,200.00 0 00 1,845.56 0 00 1,488.13 3,33369 FHLMC 4.750% Due 10-24-07 (3128x4s16) 41,430.56 0.00 47,500 00 0 00 6,06944 0.00 64.98 6,13442 FHLMC 4.375% Due 1 I-16-07 (3134a4v18) 49,213.75 0.00 65,625 00 0 00 16,406.25 0 00 3,416.22 19,822.47 FHLB Step-Up Note 5 000% Due 11-23-07 (3133x9fz3) 11,458.33 0.00 31,250 00 0.00 19,791.67 0 00 132.55 19,924.21 FNMA 5 100% Due 02-22-08 (31359mh71) 16,575 00 0.00 0.00 0 00 38,250 00 54,825 00 1,368.32 39,618.32 FNMA 4.000% Due 02-25-03 (3136f6yb9) 12,000.00 0.00 0 00 0 00 30,000.00 42,000 00 5,665.38 35,665.38 FFCB 3.240% Due 03-17-08 (31331twh0) 6,30000 0.00 0.00 0.00 40,500 00 46,800.00 25,548.00 66,048.00 GL CAPITAL CORD CP 0.000% Due 04-03-08 (36959hd38) 0 00 0 00 0.00 0.00 0.00 0 00 39,521.67 39,521.67 Morgan Stanley CP 0 000% Due 05-05-08 (61745ac54) 0 00 0 00 0 00 0 00 0 00 0 00 18,361 67 18,361.67 FI-ILMC 3.250% Due 06-04-08 (3128x1 eb9) 21,125.00 0 00 0 00 32,500.00 16,250 00 4,87500 9,396.10 25,646 10 GL CAPITAL CO" CP 0.000% Due 06-26-08 (369591ifs I) 0.00 0 00 0.00 0.00 0.00 0 00 35,717.50 35,717.50 PEFCO 5.870% Due 07-31-08 (742651cj9) 59,678.33 0.00 0 00 0.00 88,050 00 147,728.33 -8,520 12 79,529.88 Fl-1LMC 4.500% Due 08-04-08 (3128x4ff3) 0 00 35,625 00 0.00 0 00 10,312.50 45,937.50 -571.20 9,741.30 17HLB 4 050% Due 08-13-08 (3133x6pb6) 0 00 731.25 0 00 0.00 16,818 75 17,550 00 1,193.36 18,012.11 FHLB 4.000% Due 08-25-08 (3133x0n47) 12,000 00 0.00 0.00 0 00 30,000.00 42,000 00 10,564 13 40,564 13 1`111,13 4.500% Duc 09-03-08 (3I33xcx40) 14,375.00 0 00 0 00 0 00 56,250 00 70,625 00 6,732.22 62,982.22 FIILB 4,570% Due 10-17-08 (3133xbjpl) 62,456.67 0 00 0 00 68,550 00 34,275.00 28,181 67 1,018.82 35,293 82 FNMA 4.900% Due 11-03-08 (31398aa19) 60,433.33 0 00 0 00 73,500.00 36,750.00 23,683.33 -1,47540 35,274 60 FHLB 4 400% Due 11-21-08 (3133xnanil) 0 00 0 00 0 00 0 00 14,666.67 14,666 67 0 00 14,666.67 FHLB 4 400% Due 11-28-08 (3133xidili5) 0 00 0 00 0 00 0.00 7,57778 7,57778 0.00 7,57778 FNMA 3.210"/ Due 11-28-08 (31360vd5) 0 00 33,170 00 0 00 48,150.00 23,807.50 8,827.50 10,956 72 34,764.22 FHLB 5.350% Due 12-05-08 (3133xhxg2) 60,336 11 0.00 93,625 00 0 00 33,288.89 0.00 309.25 33,598 14 FHLB 4.300% Due 12-10-08 (3133xiilcn8) 0 00 0 00 0.00 0 00 8,779 17 8,779 17 0 00 8,779 17 FNMA 5.250% Due 01-29-09 (31359m40) 45,208.33 0 00 0 00 0 00 65,625 00 110,833.33 773 49 66,398.49 FHLB 3.800% Due 02-03-09 (31330hj5) 15,917 78 0.00 0 00 0 00 24,700.00 40,617 78 8,31706 33,017 06 FI-ILB 5.500% Due 02-13-09 (3133xlzb2) 20,625 00 0.00 41,250 00 0 00 20,625 00 0 00 0 00 20,625.00 Fl1LB 5.375% Due 03-19-09 (3133xka47) 8,958.33 0 00 67,187.50 0.00 58,229 17 0 00 934 56 59,163 73 Fl-ILMC 4.500% Due 12-17-09 (3128x6uv6) 0 00 0 00 0 00 0.00 3,50000 3,50000 0.00 3,50000 FHLB 4.250% Due 12-18-09 (3133xnsd2) 0.00 0 00 0.00 0 00 4,604 17 4,604 17 0.00 4,604 17 FFCB 4.800% Due 10-15-10 (31331x710) 0.00 2,40000 0 00 0 00 17,866.67 20,266.67 0.00 17,866 67 FNMA 5.020% Due 10-15-10 (31393ahx3) 0 00 0 00 0 00 0 00 31,793.33 31,793.33 0 00 31,793.33 546,450.97 71,926.25 376,637.50 478,064.25 1,011,996 75 775,672.22 171,341 74 1,183,338.51 Parks Development Corporation TGXSTAR (tcxstar) 0 00 0 00 0 00 28,497 19 28,497 19 0 00 0 00 28,497 19 TLXPOOL (texpool) 0 00 0 00 0 00 9,25080 9,250 80 0 00 0 00 9,25080 0 00 0.00 0 00 37,747.99 37,747.99 0 00 0 00 37,747.99 GRAND TOTAL 546,450.97 71,926.25 376,637.50 515,812.24 1,049,744.74 775,672.22 171,341.74 1,221,086.50 First Southwest Asset Management Page 9 of 13 City of Southlake AMORTIZATION AND ACCRETION Fran 09-30-07 To 12-31-07 Purchase Information Amortization/Accretion Information Purchase Date Total Adjusted Quantity Date Price Total Cost To Date To Date Balance Cost General Operating GE CAPITAL CORP CP 0.000% Due 10-02-07 (36959jx24) 0 04-05-07 0 000 0.00 428.33 77,100 00 0 00 FNMA 3 020% Due 10-12-07 (3136f5pbl) 0 07-19-06 0 000 0.00 1,488.13 61,240.00 0.00 FI-ILMC 4 750% Due 10-24-07 (3128x4sl6) 0 01-17-06 0 000 0.00 64.98 1,82000 0 00 FIILMC 4.375% Due 11-16-07 (3134a4vf8) 0 05-08-07 0 000 0 00 3,416.22 14,259.00 0 00 FHLB Step-Up Note 5 000% Due 11-28-07 (3133x9fz3) 0 11-29-04 0.000 0 00 132.55 2,500.00 0.00 FNMA 5 100% Due 02-22-08 (31359mh71) 3,000,000 09-12-06 99 737 2,992,110 00 1,368.32 7,116.60 773 40 2,999,226.60 FNMA 4 000% Due 02-25-08 (3136f6yb9) 3,000,000 01-17-06 98 423 2,952,690.00 5,665.38 43,968.28 3,34172 2,996,658.28 FFCB 3.240% Due 03-17-08 (31331twhO) 5,000,000 06-02-06 96.364 4,818,200 00 25,548.00 160,695 13 21,104 87 4,978,895 13 GL CAPITAL CORD CP 0.000% Due 04-03-08 (369591108) 3,000,000 07-10-07 96.162 2,884,371.67 39,521 67 75,177.08 39,951.25 2,960,048.75 Morgan Stanley CP 0 000% Due 05-05-08 (61745ae54) 2,000,000 10-24-07 97 419 1,948,374 44 18,361.67 18,361 67 33,263.89 1,966,736.11 FIILMC 3.250% Due 06-04-08 (3128x1 eb9) 2,000,000 02-23-07 97 610 1,952,200 00 9,396 10 31,865 02 15,934.98 1,984,065 02 GL CAPITAL CORP CP 0 000% Due 06-26-08 (36959hfsl) 3,000,000 10-02-07 96 494 2,894,810 00 35,71T50 35,717.50 69,472.50 2,930,527.50 PGFCO 5 870% Due 07-31-08 (742651cj9) 6,000,000 06-04-07 100.653 6,039,180 00 -8,520 12 -19,540.71 -19,639.29 6,019,639 29 FIILMC 4.500% Due 08-04-08 (312WI713) 2,500,000 l 1 28-07 100 168 2,504,200.00 -571.20 -571.20 -3,628.80 2,503,628.80 FHLB 4 050% Due 08-13-08 (3133x6pb6) 3,250,000 11-15-07 99 787 3,243,093 75 1,193.36 1,193.36 5,712.89 3,244,287 11 FHLB 4 000% Due 08-25-08 (3133x0n47) 3,000,000 07-27-06 97 089 2,912,670 00 10,564 13 60,169 60 27,160 40 2,972,839 60 FI ILB 4.500%Duc 09-08-08 (3I33xcx40) 5,000,000 05-03-07 99.279 4,963,930 00 6,732.22 17,781 83 18,288 17 4,981,711 83 FHLB 4.570% Due 10- 17-08 (3133xbjp 1) 3,000,000 09-18-07 99.854 2,995,62000 1,018.82 1,162.78 3,217.22 2,996,782.78 FNMA 4.900% Due 11-03-08 (31398aaf9) 3,000,000 09-13-07 100123 3,006,690 00 -1,47540 -1,76407 -4,925 93 3,004,925.93 FIILB 4 400% Due 11-21-08 (3133xnaml) 3,000,000 11-21-07 100 000 3,000,000 00 0 00 0.00 0 00 3,000,000.00 FHLB 4 400% Due 11-28-08 (3133xiilih5) 2,000,000 11-30-07 100 000 2,000,000 00 0 00 0 00 0 00 2,000,000.00 FNMA 3.210% Due 11-28-08 (3136f3vd5) 3,000,000 10-02-07 98.306 2,949,180.00 10,956 72 10,956 72 39,863.28 2,960,136.72 First Southwest Asset Management Page 10 of 13 City of Southlake AMORTIZATION AND ACCRETION Front 09-30-07 To 12-31-07 Purchase Information Amortization/Accretion Information Purchase Date Total Adjusted Quantity Da (c Price Total Cost To Dale To Date Balance Cast FI-1LB 5.350% Due 12-05-08 (3133xhxg2) 0 12-05-06 0 000 0 00 309.25 525 00 0.00 FIILB 4.300% Due 12-10-08 (3133xnkn8) 3,500,000 12-10-07 100 000 3,500,000 00 0.00 0 00 0 00 3,500,000.00 1,NMA 5.250% Due 0 1-29-09 (31359nAM) 3,000,000 02-01-07 99805 2,994,150.00 740.25 2,68741 3,162.59 2,996,83741 2,000,000 04-05-07 99.988 1,999,76000 33.25 97.94 142.06 1,999,857.94 5,000,000 4,993,910.00 773 49 2,785.35 3,30465 4,996,695.35 FI-ILB 3.800% Due 02-03-09 (3133x3hj5) 2,600,000 02-23-07 97.530 2,535,780.00 8,31706 28,205.67 36,014.33 2,563,985 67 FI-ILB 5.500% Due 02-13-09 (3133xlzb2) 0 08-16-07 0 000 0 00 0 00 0.00 0 00 FIILB 5.375% Due 03-19-09 (3133xka47) 0 04-03-07 0 000 0 00 934.56 1,250.00 0 00 Fl1LMC 4.500% Due 12-17-09 (3128x6uv6) 2,000,000 12-17-07 100.000 2,000,000.00 0 00 0 00 0.00 2,000,000 00 Ft ILB 4.250% Due 12-18-09 (3133xusd2) 3,000,000 12-18-07 100.000 3,000,000 00 0 00 0.00 0 00 3,000,000 00 FFCB 4.800% Due 10-15-10 (31331x710) 2,000,000 10-24-07 100 000 2,000,000 00 0 00 0 00 0 00 2,000,000 00 FNMA 5 020% Due 10-15-10 (31398ahx3) 3,000,000 10-15-07 100 000 3,000,000 00 0 00 0 00 0 00 3,000,000 00 PORTFOLIO TOTAL 75,087,509 86 171,341 75 631,974 61 289,209.52 75,560,790 48 GRAND TOTAL 75,087,509.86 171,341.75 631,974.61 2899209.52 75,560,790.48 First Southwest Asset Management Page 11 of 13 City of Southlake PROJECTED FIXED INCOME CASH FLOWS BeginningJcmucuy 1, 2008 SECURITY DESCRIPTION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL AGENCY COUPON SECURITIES 'NMA 5100%Due 02-22-08(31359mh71) 3,076,500.00 3,076,50000 'NMA 4.000% Due 02-25-08 (3136f6yb9) 3,060,000.00 3,060,000.00 -PCB 3 240% Due 03-17-08 (31331twh0) 5,081,000.00 5,081,000.00 A-ILMC 3.250%Duc06-04-08(3I23x1cb9) 2,032,500.00 2,032,50000 ?EFCO 5.370%Due07-31-08(742651cj9) 176,100.00 6,176,10000 6,352,200.00 FIILMC 4.500% Duc 08-04-08 (3I28x4B3) 56,250.00 2,556,250.00 2,612,500.00 1,IILB 4.050% Due 08- 13-08 (3 133x6pb6) 65,812.50 3,282,906.25 3,348,718.75 Fl ILB 4.000% Due 03-25-03 (3133x0n47) 60,000.00 3,060,000.00 3,120,000.00 PIILB 4.500% Due 09-08-08(3133xcx40) 112,500.00 5,112,500.00 5,225,000.00 PIILB 4.570% Due 10-17-08 (3133xbjp1) 68,550.00 3,063,550.00 3,137,100 00 FNMA 4.900% Due 11-03-08 (31398aa19) 73,500.00 3,073,500.00 3,147,000.00 F14LB 4400%Duc 11-21-03(3133maui1) 66,000.00 3,066,000.00 3,132,00000 FI-ILB 4.400% Due 11-28-08 (3133xu1di5) 43,511 11 2,044,000.00 2,087,511.11 FNMA 3.210'/o Due 11-28-08(3136I3vd5) 48,150.00 3,048,150.00 3,096,300.00 PI ILB 4.30096 Due 12-10-03 (3133xnku8) 75,250.00 3,575,250.00 3,650,500 00 FNMA 5.250 % Duc OI-29-09 (31359m4h3) 131,250.00 131,250.00 262,500.00 FHLB 3.800% Due 02-03-09 (3133x3hj5) 49,400.00 49,400.00 98,800.00 FI-ILMC 4.500% Due 12-17-09 (3123x6uv6) 45,000.00 45,000 00 90,000.00 F14LB 4.250% Due 12-18-09(3133xusd2) 63,750.00 63,750.00 127,500.00 PFCB 4.800%Due10-15-10(31331010) 48,000.00 48,000.00 96,000.00 FNMA 5.020% Due 10-15-10(31398a1rx3) 75,300.00 75,300.00 150,600.00 Total 307,350.00 6,302,150.00 5,193,500,00 191,850.00 296,973.61 2,216,500.00 6,307,35000 8,948,556.25 5,112,500.00 3,191,85000 11,231,650.00 3,684,000.00 52,984,229.86 COMMERCIAL PAPER GE CAPITAL CORP CP 0.000% Due 04-03-08 31000,000.00 3,000,000 00 (36959hd33) Morgan Stanley CP 0.000% Due 05-05-08 (61745ac54) 2,000,000.00 2,000,000 00 First Southwest Asset Management Page 12 o113 City of Southlake PROJECTED FIXED INCOME CASH FLOWS Beginning January 1, 2008 SECURITY DESCRIPTION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL E CAPITAL CORP CP 0 000% Due 06-26-08 3,000,000.00 3,000,000 00 169591L1s l ) otal 3,000,000.00 2,000,000.00 3,000,000.00 8,000,000 00 band Total 307,350.00 6,302,150.00 5,193,500.00 3,191,850.00 2,296,973.61 5,216,500.00 6,307,350,00 8,948,556.25 5,112,500.00 3,191,850.00 11,231,650.00 3,684,000.00 60,984,229.86 First Southwest Asset Management Page 13 of 13 CIT Y OF SOUTHLAI,(E Finance Department's Quarterly Review For the period ended December 31, 2007 City of Southlake January 2008 Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork To: Shana Yelverton, City Manager Jim Blagg, Assistance City Manager From: Sharen Jackson, Finance Director Re: First Quarter FY 2008 Financial Report Date: January 15, 2008 The finance department is pleased to submit a financial report for the first quarter of FY 2008 period ended December 31, 2007. This report contains financial statements for the City's operating fiords, status reports of the Capital Projects and a report of the City's Investment portfolio. GENERAL FUND REVENUES Property tax. In the General Fund, $5,456,711 of $14,677,181 or 37.2% of budgeted property tax has been collected. Since property tax bills are delinquent as of February 1, most tax collections are received in the first four months of the fiscal year. It is anticipated that collections will meet projections. Tarrant County has collected the City's taxes since 1982. Sales tax. Sales tax budgeted for Fiscal Year 2008 is $8,402,600. For FY 2008 first quarter (October and November) the City has collected $1,543,868 in sales tax. This is 23.6% or $283,922 above the projected amounts to date. The significant increase is due to budget collections are net Grand Avenue 380 agreement and actual collections include 100% of Grand Avenue collections sales tax. Franchise fees. Franchise fees include amounts received for use of public rights of way from utility companies. To date the City has received $122,325 of $2,471,971 budgeted. FY 2008 collections are comparable to prior year's collections. A large portion of the franchise fees are collected in the forth quarter of the fiscal year. Tri-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 $155,325, which is 15.5% of the $1,000,000 budgeted. This revenue source depends on many variables, such as the number of citations issued, warrants issued and collected, plus the number of cases assigned to deferred adjudication. Citation volume is lower for first quarter FY 2008 compared to FY 2007 first quarter. 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. Revenue to date total $114,113, compared with $129,399 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 $381,362, or 23.3% of the budgeted anlount of $1,635,250. This is less than $512,840 collected as of December 31, 2006. 34 residential permits have been issued to date compared to 29 issued in the prior fiscal year first quarter. Residential permits are consistent with prior year (average square footage and value). The largest reduction in perniits/fee revenue is due to the reduction in commercial permits issued during the first quarter FY 2008. 2 and 13 commercial permits were issued for the first quarter December 31, 2007 and December 31, 2006, 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 $98,745 to date. Revenues from miscellaneous income will meet the $663,812 budgeted. Interest income. Interest earnings to date total $86,052. The total collected is on target with the $400,000 budgeted for the year. GENERAL FUND EXPENDITURES For the first quarter ended December 31, 2007 of the fiscal year, General Fund total expenditures are $7,104,951 or 24.0% of the $29,641,168 budget. A brief discussion of each department will follow, providing a surnrnary explanation of major expenditures trends. General government department. Department expenditures for the City Secretary's Office, Human Resources, City Manager's Office and Support Services total $1,533,783, which is 27.3% of budget. Personnel, legal services and utility expenditures are on target with budget. 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 $542,080 or 29.3% of the $1,847,521 budgeted. Personnel, operations and capital expenditures are within budget. Public safety department. Total expenditures for Police Services, Fire Services, and Public Safety Support, are $2,706,320, which is 23.0% of the $11,764,469 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 $738,834 or 26.3% of the $2,808,783 budgeted. Personnel, operations and capital expenditures are within budget. Planning and development department. Total expenditures for Planning and building inspections are $321,344 or 16.3% of the $1,973,527 budgeted for the year. Expenditures in the Department are within budgeted. Economic development department. The department has expended $71,896, or 20.0% of the $358,897 budgeted for the year. Expenditures in the Department are within budget. Community services department. Total expenditures for Conununity Services, Parks and Recreation, and Library Services are $1,190,694 or 22.6% of the $5,259,992 budgeted. Personnel expenditures are on target with budget. There is $249,269 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, therefore minimum expended for revenue-supported contract instructors have been spent through December. Expenditures in the Department are expected to be within budget projections. WATER AND SEWER ENTERPRISE FUND Revenues. As of December 31, 2007, the City has received $4,528,708 or 23.4% in revenues of the $19,351,913 estimated. This is comparable to $4,499,887 received through December 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. Expenses. The City has expended $1,908,584 or 9.9% of the $19,306,186 budgeted for persomlel, operations, capital, and debt services. Of the total expenses, $487,017 has been paid to the City of Fort Worth for treated water. STORMWATER ENTERPRISE FUND Revenues. On October 17, 2006 City Council approved Ordinance No. 900 and 901 establishing the Storm water Drainage Utility System and establishing the fee respectively. As of December 31, 2007, the city has received $294,337 or 27.5% in revenue of the $1,072,197 estimated. Expenses. There were not any expenditures during the first quarter in the Stormwater fund. DEBT SERVICE FUND Revenues. The City has received $2,428,709 in current and delinquent property taxes through December 31, 2007. This fund pays the property tax supported debt requirements for the city. The first semi-annual payments are due beginning February 2008. SOUTHLAKE PARKS DEVELOPMENT CORPORATION (SPDC) Operating Fund. As of December 31, 2007, $733,347 in the %2 cent sales tax has been collected. SPDC sales tax receipts are 10.9% above estimates, or $72,389. CRIME CONTROL AND PREVENTION DISTRICT (CCPD) Operating Fund. As of December 31, 2007, $710,374 in the '/z cent sales tax has been collected. Sales tax receipts are 9.6% above estimates, or $62,465. PARK DEDICATION FEE FUND Revenues. The City has collected $4,500 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. TAX INCREMENT FINANCIAN DISTRICT (TIF) 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 December 31, 2007 the expenditures were $35,898 for software conversion. HOTEL OCCUPANCY FUND Revenues. The City has collected $153,904 or 27.8% in revenue of the $553,594 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 December 31, 2007 the expenditures were $5,227. GENERAL FUND Statement of Revenues, Expenditures and Changes in Fund Balance for the period ended December 31, 2007 with comparative actual amounts for the period ended December 31, 2006 (fiscal month 3-25.00%) Percent Year to Date 2008 Collected/ Year to Date REVENUES 12/31/2007 Budget Ex ended 12/31/2006 Ad Valorem Taxes $5,456,711 $14,677,181 37.2% $5,732,779 Sales Tax 1,543,868 8,402,600 18.4% 2,400,469 Franchise Fees 122,325 2,471,971 4.9% 53,609 Fines 155,281 1,000,000 15.5% 214,185 Charges for Services 114,113 903,570 12.60 129,399 Permits/Fees 381,362 1,635,250 23.3% 512,840 Miscellaneous 98,745 663,812 14.9% 147,824 Interest Income 86.052 400,000 21.5% 80,301 Total Revenues $7,958,457 $30,154,384 26.4% $9,271,406 EXPENDITURES City Secretary $80,601 $387,746 20.80 $67,194 Human Resources 125,731 437,795 28.7% 87,245 City Manager 115,574 635,322 18.2% 116,829 Support Services 1,211,877 4,167,116 29.1% 904.978 General Government Total 1,533,783 5,627,979 27.3% 1,176,246 Finance 397,881 1,166,054 34.1% 185,744 Municipal Court 116,948 554,519 21.1% 103,020 Municipal Court-Teen Court 27,251 126,948 21.5% 21.914 Finance Total 542,080 1,847,521 29.3% 310,678 Fire 1,007,437 4,253,159 23.7% 828,204 Police 1,321,757 5,924,683 22.3% 1,267,948 Public Safety Support 377,126 1,586.627 23 80% 267.244 Public Safety Total 2,706.320 11,764,469 23.0% 2.363,396 Streets/Drainage 511,279 1,612,078 31.7% 236,768 Public Works Administration 227.555 1,196,705 19.00yo 194,122 Public Works Total 738,834 2,808,783 26.3% 430,890 Building Inspections 158,154 973,508 16.2% 170,201 Planning 163,190 1,000.019 16.3% 167,006 Planning and Dev Total 321,344 1,973,527 16.3% 337,207 Economic Development 71,896 358,897 20.0% 72,526 Economic Development Total 71,896 358,897 20.0% 72,526 Community Services 103,003 513,079 20.1% 103,003 Parks and Recreation 934,211 4,168,088 22.4% 660,404 Library Services 153,480 578,825 26.5% 113.368 Community Services Total 1,190,694 5,259,992 22.6% 876,775 Total Expenditures $7,104,951 $29,641,168 24.0% $5,567,718 Excess (deficiency) of Revenue over Expenditures $853,506 $513,216 $3,703,688 OTHER FINANCING SOURCES AND (USES) Proceeds from lease/CO (net) $0 $0 $0 Transfer In-Other Funds 0 408,195 0 Transfer To-Other Funds 0 (1,085,000) 0 Total Other Sources/(Uses) $0 ($676,805) $0 Excess (deficiency) of Revenues/other sources over Exp. $853.506 $163.589 $3.703.688 FUND BALANCE OCT 1 $7,768,639 Change in reserved fund balance $0 ENDING FUND BALANCE $7,605,050 fund balance percentage 25.66% WATER AND SEWER ENTERPRISE FUND Comparative Statement of Revenues and Expenses for the period ended December 31, 2007 and December 31, 2006 (fiscal month 3-25.00%) Percent Year to Date 2008 Collected/ Year to Date REVENUES 12/31/2007 Budget Expended 12/31/2006 Water Sales-residential $2,310,041 $10,500,000 22.0% $2,352,236 Water Sales-commercial 797,996 3,100,000 25.7% 761,328 Sewer Sales 1,031,135 3,900,000 26.4% 966,373 Sanitation Sales 252,479 1,156,163 21.8% 253,295 Other utility charges 75,038 289,750 25.9% 70,386 Miscellaneous 13,774 106,000 13.0% 36,044 Interest Income 48.245 300.000 16.1% 60.225 Total Revenues $4,528,708 $19,351,913 23.4% $4,499,887 EXPENSES Water $1,299,315 $10,655,015 12.2% $1,748,310 Utility Billing 127,239 402,347 31.6% 59,466 Sewer 396,461 2,052,761 19.3% 262,165 Sanitation 85,569 837,834 10.2% 121,919 Debt Service 0 5.358.229 0.0% 0 Total Expenses $1,908,584 $19,306,186 9.9% $2,191,860 Excess (deficiency) of Revenue over Expenses $2.620.124 $45.727 $2.308.027 OTHER FINANCING SOURCES AND (USES) Transfer In-Other Funds $0 $0 Developer Contributions $0 $50,000 $0 Transfer Out-Other Funds 0 38( 8.038) 0 Total Other Sources/(Uses) $0 ($338,038) $0 Excess (deficiency) of Revenues and other sources over Expenses $2.620.124 ($292.311) $2.308.027 CITY OF SOUTHLAKE 1% SALES TAX REPORT 2008 Collected Budget Balance Budget to Date Balance Percent $ 8,202,600 $1,488,916 ($6,713.684) -81.85% FISCAL FISCAL FISCAL YEAR % Inc YEAR % Inc YEAR % Inc MONTH 2006 -Dec 2007 -Dec 2008 -Dec October 933,496 126.2% 674,934 -27.7% 686,499 17% November 520,781 108% 619,509 190% 802,417 29.5% December 823,106 14.4% 1,106,026 344% 0 -100.0% January 499,821 14.7% 559,469 119% 0 -100.0% February 477,019 16.2% 611,242 28.1% 0 -1000% March 733,397 147% 804,752 97% 0 -1000% April 619,820 260% 664,768 73% 0 -100.0% May 632,954 29.2% 744,258 176% 0 -100.0% June 899,050 431% 828,321 -79% 0 -100.0% July 509,767 13.2% 715,342 403% 0 -100.0% August 642,637 237% 672,614 47% 0 -100.0% September 773,386 26.2% 810,258 48% 0 -1000% TOTAL $8,065,233 $8,811,494 $1,488,916 Three Year Revenue Comparison by Month 1,200,000 1,000,000 800,000 t 600,000 "s 400,000 b 200,000 s 3 0 O~ O~ O~ 00 00 00 00 00 00 00 00 00 so ~o~ PJ°' gel s FISCAL YEAR 2006 ❑ FISCAL YEAR 2007 ■ FISCAL YEAR 2008 Actual Budget Actual Estimated (budget-est.) % Month 2007 2008 2008 2008 Difference Change October(*) $ 674,934 $ 628,294 $686,499 $ 686,499 $ 58,205 9.26% November(*) $ 619,509 $ 576,699 $802,417 $ 802,417 $ 225,717 3914% December(*) $ 1,106,026 $ 1,029,597 $0 $ 1,029,597 $ - 000% January(*) $ 559,469 $ 520,809 $0 $ 520,809 $ - 000% February(*) $ 611,242 $ 569,004 $0 $ 569,004 $ - 000% March(*) $ 804,752 $ 749,142 $0 $ 749,142 $ - 0.00% April $ 664,768 $ 618,831 $0 $ 618,831 $ - 0.00% May $ 744,258 $ 692,828 $0 $ 692,828 $ - 0.00% June $ 828,321 $ 771,082 $0 $ 771,082 $ - 000% July $ 715,342 $ 665,911 $0 $ 665,911 $ - 000% August(*) $ 672,614 $ 626,135 $0 $ 626,135 $ - 000% September(*) $ 810,258 $ 754,267 $0 $ 754,267 $ - 0.00% TOTAL $ 8,811,494 $ 8,202,600 $ 1,488,916 $ 8,486,522 $ 283,922 * Beginning April 2006 includes Grand Avenue sales tax collections per 380 agreement 80% of collections will be distributed to Cooper & Stebbins SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT 112% SALES TAX REPORT 2008 Collected Budget Balance Budget to Date Balance Percent $ 4,467,750 $710,374 (3,757,376) -84.10% Fiscal Year Percent Fiscal Year Percent Fiscal Year Percent 2006 Increase/ 2007 Increase/ 2008 Increase/ MONTH Actual (Decrease) Actual (Decrease) Actual (Decrease) October $461,119 120.83% $304,276 -34 01 % $334,143 982% November 258,824 9.91% 308,020 19.01% 376,231 22.14% December 371,963 10.52% 523,323 40.69% - -100.00% January 246,180 11.18% 290,761 18.11% - -100.00% February 235,970 1460% 301,199 27.64% - -10000% March 336,357 13.96% 382,088 13.60% - -10000% April 303,289 22.98% 311,411 2.68% - -100.00% May 314,379 27.94% 359,218 14.26% - -10000% June 422,323 50.52% 389,658 -7.73% - -10000% July 255,215 15.79% 348,010 3636% - -100.00% August 311,137 2307% 329,686 596% - -100.00% September 340,310 23.27% 374,527 10.05% - -10000% TOTAL $3,857,066 $4 222 177 $710,3741 Three Year Revenue Comparison by Month $600,000 $500,000 $400,000- $300,000- $200,000 $100,000- $0 01 OA 01 Q0 00 o`b 00 0o Ob 00 0o O~ lac PQ~ aA O°~ ~o~ Ora Sao 1<0 P 5 ® Fiscal Year 2006 Actual ■ Fiscal Year 2007 Actual ❑ Fiscal Year 2008 Actual Actual Budget Actual Estimated (budget-est.) % 2007 2008 2008 2008 Difference Change October $ 304,276 $ 321,974 $ 334,143 $ 334,143 $ 12,169 378% November $ 308,020 $ 325,935 $ 376,231 $ 376,231 $ 50,296 15.43% December $ 523,323 $ 553,761 $ - $ 553,761 $ - 000% January $ 290,761 $ 307,672 $ - $ 307,672 $ - 000% February $ 301,199 $ 318,718 $ - $ 318,718 $ - 000% March $ 382,088 $ 404,311 $ - $ 404,311 $ - 0.00% April $ 311,411 $ 329,524 $ - $ 329,524 $ - 000% May $ 359,218 $ 380,111 $ - $ 380,111 $ - 000% June $ 389,658 $ 412,322 $ - $ 412,322 $ - 0.00% July $ 348,010 $ 368,251 $ - $ 368,251 $ - 0.00% August $ 329,686 $ 348,861 $ - $ 348,861 $ - 000% September $ 374,527 $ 396,311 $ - $ 396,311 $ - 0.00% TOTAL $ 4,222,177 $ 4,467,750 $ 710,374 $ 4,530,215 $ 62,465 SOUTHLAKE PARKS DEVELOPMENT CORPORATION 1/2% SALES TAX REPORT 2008 Collected Budget Balance Budget to Date Balance Percent $ 4,499,250 $733,347 ($3,765,903) -83.70% FISCAL FISCAL FISCAL YEAR % Inc YEAR % Inc YEAR % Inc MONTH 2006 -Dec 2007 -Dec 2008 -Dec October $459,781 126.2% $332,430 -277% $338,127 17% November 256,504 108% 305,131 190% 395,220 295% December 405,410 144% 544,759 344% - -1000% January 246,505 149% 275,560 118% - -1000% February 234,949 16.2% 301,059 28.1% - -1000% March 361,225 147% 396,371 97% - -100.0% April 305,284 260% 327,423 73% - -1000% May 311,753 29.2% 366,575 176% - -1000% June 442,816 43.1% 407,979 -79% - -1000% July 251,080 13.2% 352,333 403% - -1000% August 316,523 237% 331,288 47% - -1000% September 380,921 26.2% 399,082 48% - -1000% TOTAL $3,972,753 $4,339,989 $733,347 Three Year Revenue Comparison by Month $600,000 $500,000 $400,000 $300,000 $200,000 s $100,000 a $0 O~ 01 O~ OI 0o S§1 OQ' OQ' (§1 OQ' O§5 O~ Co' Oe~ lac Leo ~a~ PQt ~a~ )Ot~ ~J~ Q°~ ~eQ ■ FISCAL YEAR 2006 ❑ FISCAL YEAR 2007 ■ FISCAL YEAR 2008 Actual Budget Actual Estimated (budget-est.) % 2007 2008 2008 2008 Difference Change October $ 332,430 $ 344,629 $338,127 $ 338,127 $ (6,502) -189% November $ 305,131 $ 316,328 $395,220 $ 395,220 $ 78,892 2494% December $ 544,759 $ 564,750 $o $ 564,750 $ - 000% January $ 275,560 $ 285,672 $o $ 285,672 $ - 000% February $ 301,059 $ 312,107 $o $ 312,107 $ - 000% March $ 396,371 $ 410,916 $o $ 410,916 $ - 000% April $ 327,423 $ 339,438 $o $ 339,438 $ - 0.00% May $ 366,575 $ 380,027 $o $ 380,027 $ - 0.00% June $ 407,979 $ 422,950 $o $ 422,950 $ - 000% July $ 352,333 $ 365,262 $a $ 365,262 $ - 000% August $ 331,288 $ 343,445 $o $ 343,445 $ - 000% September $ 399,082 $ 413,727 so $ 413,727 $ - 000% TOTALS $ 4,339,989 $ 4,499,250 $ 733,347 $ 4,571,639 $ 72,389 T ~ City of Southlake Finance Deaartrnenf CITY OF SOUTHLAKE CAPITAL IMPROVEMENTS PROGRAM QUARTERLY STATUS REPORT December 31, 2007 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 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, Strategic Initiative Projects and Southlake Parks Development Corp. Improvement Projects. 1400 Main Street Suite 440 • Southlake, TX 76092 (817) 748-8042 9 www.d.souNake.bLus TABLE OF CONTENTS Page Streets and Drainage Improvements Traffic Management Projects Water System Improvements Sewer System Improvements Crime Control Projects ...........................................................................8 Strategic Initiative Projects ......................................................................9 Southlake Parks Development Corp Improvements ....................................10 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Street & Drainage Improvement Projects Report Date: December 31, 2007 Title: Location: Project Description: FM 1938 Right-of-Way East side of Randol Mill from On December 31, 2001, the TCC approved a Minute Acquisition 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 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 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. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $580,000 $167,690 $412,310 Funding Source(s): Status: G.0 Bonds, G.0 Bond Interest Waiting on TXDOT and FEDs to complete environmental studies. Tarrant County, through an interlocal agreement with the City, is in the process of obtaining right-of-way on the City's behalf Completion Date: Title: Location: Project Description: N. 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 Plan. This project also includes necessary drainage improvements. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $7,095,000 $202,436 $6,892,564 Funding Source(s): Status: G.0 Bonds, G.0 Bond Interest, Roadway Impact funds Preliminary design phase is complete. Final design phase in progress. Completion Date: Spring 2009 Paqe 1 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Street & Drainage Improvement Projects Report Date: December 31, 2007 Title: Location: Project Description: 2006 Street rehabilitation & Various locations throughout Design and rehabilitation or reconstruction of streets as reconstruction as required by the City recommended by the Pavement Management System. the Pavement Management Project includes pavement rehab, HMAC overlays and System concrete street section replacements. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $1,769,275 $1,557,918 $211,357 Funding Source s): Status: G.O. Bonds, G.O Bond Interest, residual funds Design is complete, project has been awarded to Sunmount Corp. Construction started in July. Completion Date: Summer 2008 Title: Location: Project Description: 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 Total Estimated Cost: LTD Actual Cost: Cost to Complete: $924,070 $322,278 $601,792 Funding Source(s): Status: G.O. Bonds, Strategic Initiative Fund transfer In progress Completion Date: When funds are depleted Title: Location: Project Description: Roadway and drainage Shumaker Lane Construct paving and drainage on Shumaker Lane. This improvements street is a gravel street with storm water run-off that floods property to the west in Hunter's Ridge subdivision. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $409,218 $18,875 $390,343 Funding Source(s): Status: Strategic Initiative Fund transfer Design is complete and project will be bid this summer Completion Date: Spring 2008 Page 2 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Street & Drainage Improvement Projects Report Date: December 31, 2007 Title: Location: Proiect Description: Roundabout construction White Chapel at Continental Reconstruct the intersection to improve traffic flow and drainage. The design will include a traffic analysis to determine the optimal intersection. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $750,000 $51,109 $698,891 Funding Source s): Status: Strategic initiative fund transfer, Roadway Impact fund Engineering is currently underway. Expect to bid the project for all roundabouts in Fall 2007. This roundabout will be constructed first, estimated start date January 2008. Completion Date: April 2008 Title: Location: Proiect Description: Roundabout construction Dove at N. White Chapel Reconstruct the intersection to improve traffic flow and drainage. The design will include a traffic analysis to determine the optimal intersection. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $800,000 $53,301 $746,699 Funding Source(s): Status: Strategic Initiative Fund transfer, Roadway Impact fund Engineering is currently underway Expect to bid the project for all roundabouts in Fall 2007. This roundabout will be constructed second, estimated start date April 2008. Completion Date: July 2008 Title: Location: Project Description: Roundabout construction Dove at N. Carroll Reconstruct the Dove St. and N. Carroll Ave intersection to improve traffic flow and drainage. The design will include a traffic analysis to determine the optimal intersection. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $750,000 $53,301 $696,699 Funding Source(s): Status: Strategic initiative fund transfer, Roadway Impact fund Engineering is currently underway Expect to bid the project for all roundabouts in Fall 2007. This roundabout will be constructed last, estimated start date July 2008. Completion Date: October 2008 Page 3 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Traffic Management Projects Report Date: December 31, 2007 Title: Location: Proiect Description: Agreement with TXDOT for Jellico Court East and West Construction of intersection improvements with construction of deceleration Brock Dr., Meadowlark Ln., deceleration lanes along FM 1709 from Jellico Circle lanes at various locations Southridge Lakes Pkwy & West to Bank Street. along FM 1709. Waterford Dr., Ginger Ct., Stone Lakes PI., Timber Lake PI., Lake Crest Dr , Bicentennial Park, Diamond Blvd./Byron Nelson Pkwy, Foxborough Ln., Miron Dr , Westwood Dr., Commerce St., Bank St. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $500,000 $5,976 $494,024 Funding Source(s): Status: G.O. Bonds, G.0 Bond Interest Working to obtain TXDOT approval of the design. Completion Date: September 2008 Title: Location: Project Description: Design of right turn deceleration Various locations on Southlake Professional services agreement with TranSystems lanes Blvd. Corporation. Services will include design, right-of-way surveying with digital aerial photogrammertry, preparation of construction plans and specifications, and preparation of construction documents. The project will also address drainage and culvert issues that are necessary to accommodate the widening. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $294,127 $189,470 $104,657 Funding Source(s): Status: G.0 Bonds, G.0 Bond Interest Project just getting started Completion Date: September 2008 Page 4 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Water System Improvement Projects Report Date: December 31, 2007 Title: Location: Proiect Description: 12" waterline 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 existing 6" at W Perry & E. Perry. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $276,650 $25,170 $251,480 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Currently working on obtaining easements. Once (issued in 2006) easements are acquired the project will be bid (2-3 months out). Completion Date: Summer 2008 Title: Location: Project Description: 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 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: $2,860,000 $2,291,661 $568,339 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Construction almost completed. Completion Date: Summer 2008 Title: Location: Proiect Description: Repaint two elevated water tanks Bicentennial Park and at E. Dove Repainting of the interior and exterior of two elevated water Ave. and N. White Chapel Blvd. tanks. The repainting is in line with the expected life of the coatings applied during their original construction, Dove in 1986 and Bicentennial in 1988. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $793,600 $711,006 $82,594 Page 5 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Water System Improvement Projects Report Date: December 31, 2007 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Painting is in progress. Bicentennial Park tank is complete, working on E. Dove tank Completion Date: Summer 2008 Title: Location: Proiect Description: Repaint ground storage tanks Pearson East and West The Pearson East tank needs the interior of the tank painted. A routine inspection revealed that the interior was failing and needed repair The exterior of the Pearson West tank has faded and needs to be repainted with a protective top coat to improve its aesthetics. Project includes plans, project administration, QA and testing. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $683,042 $517,041 $166,001 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Project has been awarded and painting is in progress. Completion Date: Summer 2008 Title: Location: Project Description: 24" water supply line to TW King TW King Pump Station #2 Construct approximately 32,000 linear feet of 24" water 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 fed from pump station #1. This process is inefficient and reduces the City's ability to pump water throughout the system. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $6,476,000 $47,775 $6,428,225 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Project is currently in preliminary design and engineering. Completion Date: Spring 2009 Page 6 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Sewer System Improvement Projects Report Date: December 31, 2007 Title: Location: Proiect Description: 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: $2,254,735 $50,275 $2,204,460 Funding Source(s): Status: Tax & Revenue Certificates of Obligation Design is complete. Project is in the process of being bid. (issued in 2006) Completion Date: Fall 2008 Title: Location: Project Description: 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. Completion of the turnover will shift Westlake billing responsibility to TRA. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $200,000 $37,191 $162,809 Funding Source(s): Status: Residual funds from other projects Professional services contract has been awarded to RJN Group, Inc. for the evaluation of the condition and capacity of the N-1 sewer line. Completion Date: Summer 2007 Page 7 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Crime Control Fund Projects Report Date: December 31, 2007 Title: Location: Proiect Description: DPS East facility Central DPS facility to be located Design and construction of a centrally located DSP facility. at 667 N. Carroll Ave. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $14,180,250 $2,146,461 $12,033,789 Funding Source(s): Status: Contract for design services has been awarded to RPGA Crime Control sales tax Design Group Contract for construction management services has been awarded to Lee Lewis Construction. Completion Date: October 2009 Title: Location: Project Description: 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. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $650,000 $257,513 $392,487 Funding Source(s): Status: Crime Control sales tax Contract out for bid and to be awarded in August 2007. Completion Date: Fall 2008 Page 8 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Strategic Initiative Fund Projects Report Date: December 31, 2007 Title: Location: Project Description: Urban design study completion, NA Initiatives to enhance the quality of life or aesthetics for implementation and branding Southlake. Funding is to complete the Urban Design Study and related branding project, as well as initial implementation of the Urban Design Study recommendations. Projects may include medians, street trees, textures, portals, sidewalk treatments, traffic calming, sculptures, and placement of underground utilities. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $273,914 $139,039 $134,875 Funding Source(s): Status: Strategic Initiative Fund Contract has been awarded to Townscape, Inc. for completion of the Urban Design Study Completion Date: Spring 2008 Title: Location: Protect Description: Munis software purchase and City wide Implementation of Phase II of the IT Alignment Study. This implementation includes the purchase of Finance, Utility Billing and Human Resource Management foundational software; the purchase of hardware for the software applications; data conversion associated with the software applications; RFP and selection assistance for the Public Operations Software; and purchase of CRIMES software and hardware for RMS/CAD operations. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $2,205,000 $1,102,842 $1,102,158 Funding Source(s): Status: Strategic Initiative Fund Software has been installed; in the process of set up as well as staff training on various parts of the software. Completion Date: Go live date on Finance software is October 1, 2007 Go live date on Utility Billing software is January 1, 2008 Go live date on Human Resource Management software is January 1, 2008 Page 9 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Southlake Parks Development Corp. Improvement Projects Report Date: December 31, 2007 Title: Location: Project Description: Nature Center Improvements Tucker property adjacent to Design, engineering and construction of a permanent Bob Jones Park Nature Center using the Tucker ranch house. Includes basic interior remodeling and upgrades, ADA accessible entries, crushed granite drive, parking and site amenities. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $972,000 $586,870 $385,130 Funding Source(s): Status: Sales Tax Revenue Bonds Bids have been awarded for site work and building construction. Completion Date: Spring 2008 Title: Location: Project Description: Royal & Annie Smith Park 3001 Johnson Rd. Design, engineering and construction of an asphalt drive developments and parking area off Johnson Road , 24' pavilion, irrigation, amenities such as benches, etc. farm implement display, fine grading, landscaping, trail additions and playground. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $367,000 $22,325 $344,675 Funding Source(s): Status: Sales Tax Revenue Bonds Design and engineering is in progress. Completion Date: Late Spring 2008 Title: Location: Project Description: 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 remodeling of existing pavilion, trails (2,300 I.f.), playground, sand volleyball and horshoes. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $606,000 $47,444 $558,556 Page 10 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Southlake Parks Development Corp. Improvement Projects Report Date: December 31, 2007 Funding Source(s): Status: Sales Tax Revenue Bonds Design and engineering is in progress. Completion Date: Late Spring 2008 Title: Location: Project Description: Bob Jones Park development for Bob Jones Park Design, engineering and construction for parking lot parking lot improvements and loop improvements south of the existing softball fields and road improvements to the gravel loop road parking lot. Additional parking will alleviate current parking shortages. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $371,650 $313,169 $58,481 Funding Source(s): Status: Sales Tax Revenue Bonds Bid has been awarded for construction contract Completion Date: Spring 2008 Title: Location: Project Description: Land acquisition for multi-use TBD Purchase of approximately 40-acres for lighted sports 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. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $2,500,000 $1,076,558 $1,423,442 Funding Source(s): Status: Sales Tax Revenue Bonds Expenditures to date have been for Miles property at Bob Jones Park. Completion Date: When funds are depleted Page 11 CITY OF SOUTHLAKE, TEXAS FY 2007-08 CAPITAL IMPROVEMENTS PLAN Southlake Parks Development Corp. Improvement Projects Report Date: December 31, 2007 Title: Location: Project Description: Texas Parks and Wildlife trail Walnut Grove trail system Improvements to the Walnut Grove trail system. 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 natural water crossings. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $44,950 $3,607 $41,343 Funding Source(s): Status: Sales Tax Revenue Bonds, On hold, trails have been underwater Matching Funds from Southlake Mounted Patrol Completion Date: Winter/Spring 2008, weather permitting Title: Location: Proiect Description: Noble Oaks Park pond S. Carroll at Continental Design, engineering and construction of pond improvements improvements. Total Estimated Cost: LTD Actual Cost: Cost to Complete: $115,060 $76,194 $38,866 Funding Source(s): Status: SPDC Operating Fund Design and engineering are in progress. Completion Date: Spring 2008 Pane 12 Economic Summary First Southwest Asset Management Quarter 4th 2007 Subprime problems again dominated the financial markets The Fed offered no easy solutions for the housing collapse and the media during the quarter as the magnitude of and corresponding liquidity crisis. It was never clear that the problem proved more widespread than any would simply cutting overnight rates would do the trick. Haphazard have imagined. The National Association of Consumer lending practices of the past had already resulted in tighter Advocates said in November that four million sub-prime credit standards for the present borrowers most in need of borrowers will experience an average increase of 40% on lower rates ...and delinquent loans spiraling towards default their mortgage payments in the next 18 months.The Federal weren't likely to straighten themselves out anytime soon. Reserve reported that nearly 450,000 sub-prime borrowers Plus, many inflation indicators were already flashing red, per quarter will experience their first interest rate reset in which normally makes the Fed reluctant to ease for fear of 2008. Both Moody's and Credit Suisse have estimated that fueling price pressures. So, the FOMC followed its 50 by cut loans on 1.5 million homes could default in the next three in September with 25 by cuts on both Oct 31st and Dec 11th. years. And Deutsche Bank estimated the total global loss at Then on December 12th, the Fed announced a surprise plan $400 billion. to begin auctioning term funds to banks allowing for a wider range of collateral and a larger counter-parry group.The plan V, Sadly, Main Street will suffer the most, but creative loan was well received. But with the housing market pushing securitization allowed the pain to be felt on Wall Street as the economy toward recession, a severe credit crunch and well. Citigroup was downgraded due largely to subprime simmering inflation, the Fed will need to continue to think problems which resulted in an initial $5.6 billion dollar write outside the box. down. Both Merrill and UBS fired chief executives after disclosing a combined $11 billion in losses inthethird quarter. Very few of the financial giants were spared. Bloomberg H • • reported in December that the world's largest securities firms would collectively write down more than $89 billion in ,z0 subprime losses in the second half of 2007 with more losses 10 expected. Both Fannie Mae and Freddie Mac, once thought -E)dsbng Homes 10.0 to have minimal exposure, each reported multi-billion dollar -New Homes 90 subprime-related losses during the quarter. 80 Several Structured Investment Vehicles (SIVs) containing 70 mortgages defaulted and many others were downgraded. 6.0 It came as a surprise to even seasoned investors that the underlying asset portfolios backing short-term commercial so papercontained long-term mortgages. Fear of the unknown 40 spread from bad mortgage-backs to all mortgage-backs, 30 and from mortgage-tainted commercial paper to all asset- _ Q d d P d o P W W A A A N {T N p. O) W J J J J backed commercial paper. Some of the suspect issues ° Z ° b N ° popped up in public funds investment pools, most notably Existing and New Home Supply in the Florida state pool and surprisingly in Orange County, in Months California. Liquidity problems that emerged in the third quarter, worsened. Many investors stopped buying dealer Existing homes, which make up 85% of all homes for sale, paper. In fact, nervous investors continued to shun all fell by 1.2% in Octoberto a 4.97 million unit pace. Predictably, security types suspected of harboring subprime loans, existing home inventories rose to a record 10.8 month including some AAA-rated money market funds, and supply. New home sales also plummeted. A 9% decline in sought out the security of Government bonds, driving November brought annualized sales to an 11-year low of short Treasury yields down to three-year lows. 647k and boosted inventories to a bloated 9.2 month supply. From the sales peak in summer 2005, new and existing five years, (the MasterCard holiday spending survey showed home sales are down 48% and 31% respectively. Almost a year-over-year increase of 3.6%, versus 6.6% in 2006 and 3% of U.S. homes are now vacant, the highest level since 8.1% in 2005), the robust spending in the early part of the record keeping began more than 50 years ago. Thus, new quarter will all but assure that US economy doesn't tip into residential construction has slowed to a crawl. Housing starts recession in the final quarter of the year.The resiliency of the dropped below 1.2 million annualized units in November, consumer has been a big surprise considering that consumer nearly half of the 2.3 million unit pace from January 2006. sentiment had recently dropped to a two-year low, while the The pitiful sales and record inventories have prompted price saving rate fell to minus 0.5%, the lowest in 27 months. slashing. The extent of the price decline varies by who's doing the measuring, but according to a Case-Shiller survey • of 20 major metropolitan housing areas, the 6.6% drop in E • • N, WE I home prices, from a peak in July 2006 to October 2007, is the greatest since 1941. 5.0 4.5 E 40 3.5 The labor market has held up reasonably well in the midst of 30-/ the housing collapse and whispers of a possible recession. Nonfarm payrolls rose by 94k in November following a zs revised 170k jump in October. The negative payroll number zo for August, which may have been a significant factor in the Fed's decision to lower the fed funds rate by a full 50 bps 15 in September, was revised upward to show a 44k increase. 1.0 The unemployment rate for November was left unchanged 0.5 at 4.7%, a number that normally indicates a healthy job - Ila market. However,there are indications that job growth could 00 .o o o o a sputter in the coming months. Initial unemployment claims, o 0 0 0 0 0 0 0 0 0 0 0 0 0 7 6 W A A A A ( ( < 4i M M ~ W v J a leading indicator of unemployment, reached a two-year high in the week just before Christmas. Gross Domestic Product Quarterly Annualized Percentage Change O • The weak U.S. dollar has boosted exports and helped shrink the trade deficit, which has counterbalanced the Crude oil prices steadily rose throughout the quarter reaching negative growth associated with the severe housing slump. a record $99.29 per barrel on November 30th, while the Surprisingly, third quarter GDP growth was revised upward to a 4.9 annualized rate, the highest in four years and well national average for a gallon of gasoline rose to $3.06 in early above the 3.8% growth rate from the prior quarter. It seems November and stayed above $3 for the remainder of the year. as though the inevitable economic slowdown gets pushed The effect of rising energy prices is always debatable. To the further and further out with each passing quarter. extent that they can be passed along to consumers, high crude prices are inflationary, suggesting higher interest rates. However, higher gas pump prices sap discretionary income, ' • limiting consumer spending and ultimately economic growth. This suggests lower interest rates. 45 4.5 4.0 4,0 M 3.5 3.5 3.0 3.0 a The ISM factory index had declined for five consecutive F 2.5 2.5 months but managed to stay just above 50, the dividing a zo zo point between expansion and contraction. Thus, according to the purchasing manager's survey, the manufacturing 1. Is sector is still expanding at a modest rate. For now anyway. 1.0 10 Capital spending is down which signals a slowdown ahead. 0.5 05 0.0 0.0 n z C 6 m °rn s rn m °v b b EMMMM • • • - CPI ~COre Retail sales jumped 1.2% in November, doubling expectations, while personal spending unexpectedly surged Core CPI 1.1%, the biggest increase in over two years. Although the Inflation continues to be a puzzle. By some measures, 2007 holiday shopping season looks to be the weakest in it seems to be reasonably well contained, while other measures suggest significant price pressure. Core CPI, as Outlook of November, was rising at an acceptable 2.3% year-over- year rate, while core PCE increased by 2.2% over the past The American Dialect Society chose "subprime" as its year. Both are slightly on the high side of the Fed's comfort word of the year for 2008, edging out "facebook, "green;' range, but a weakening economy can normally be counted "googleganger" and "waterboarding" for the honor, on to stifle such inflation. Unfortunately, crude oil prices Perhaps it was the fact that subprime mortgage problems are fast approaching a record $100 per barrel, wheat more spent so much time on the front page and seemed than doubled in 2007, corn jumped 17% and soy beans to intensify as the year progressed. Over time, credit hit a 34-year high. The UBS Bloomberg Constant Maturity standards tightened and loans to sub-prime borrowers Commodity Index rose a massive 22% in 2007. Much of the completely dried up. Foreclosures increased and housing rise in commodities prices is a result of rising global demand inventories swelled. As a result, new home construction and is not likely to retreat anytime soon. slowed to a crawl and sellers were forced to cut prices on existing units.The U.S. Conference of Mayors expect that property values will fall by $1.2 trillion in 2008 slashing S • tax revenue by $6.6 billion. Market values on securities backed by mortgages tumbled. Investors steered away S&P from all security types suspected of having any exposure D• i NASDAQ to poor quality loans. The housing sector was already in 9/30/07 13,896 1,527 2,702 recession, and the rest of the economy was expected to 12/31/07 13,265 1,468 2,652 follow in short order. Change for Q4-2007 -4.5% -3.8% Change for all of 2007 +6.4% +3.5% +9.8% Oddly enough, it didn't happen. At least not in the third quarterwhere GDP rose ata startling 4.9% annualized rate, the fastest pace in fouryears.The factory sector continued F _ • 16 _ • to signal slight expansionasthe ISM manufacturing index hovered just above the 50 mark, while the labor market 1) October 31st - Fed cuts 25 bps to lower the fed funds created jobs at a steady, if mediocre rate. Crude oil prices target to 4.50% reached record highs, just below $100 per barrel, while The quarter point cut was expected, but the official gasoline prices again climbed above $3 per gallon. Many statement surprised investors by suggesting that the Fed other commodities hit all-time highs causing the Fed ' was quite worried about mounting price pressures - to voice inflation concerns. Economic woes ultimately recent increases in energy and commodity prices...may put trumped inflationary fears to support 25 by cuts at both upward pressure on inflation" FOMC meetings during the quarter. But the rate cuts didn't help restore fading confidence one bit. Pessimism 2) Dec 11th - Fed cuts another 25 bps cut to 4.25% gathered momentum as the year drew to a close. The new Fed statement acknowledged that the economy had PIMCO's manager Bill Gross wrote in December that the taken a turn for the worse and that inflationary concerns had Fed would haveto cut rates below3%to avoid a recession. eased since the last meeting.Thus, investors were confused Merrill Lynch's Chief Economist David Rosenberg said that and disappointed that the Fed didn't cut rates by a more his models were predicting recession with high certainty aggressive 50 bps. and expected that the Fed would have to cut overnight rates to 2% or lower. According to the WSJ, private ' ntereSt Rates sector economists put the odds of recession at 38%. Of course, 62% of those economists aren't forecasting a recession. It's all a moving target that frequently adjusts r . r itself after major economic news is released, but this time things seem quite different. A rapid recovery is Last 9/30/07 4.75% 3.81% 4.08% 3.99% 4.25% 4.59% unlikely. Global growth is slowing.The housing inventory High 4.28% 4.38% 4.23% 4.41% 4.68% is huge. Existing debt ratios are high. Lending standards have tightened dramatically. Rising gasoline prices will Low 2.86% 3.17% 2.85% 3.21% 3.84% squeeze consumer wallets and cash-out refinancing is no End 112/31/0714.25`/`13.24`/`13.39`/`13.05`/`13.44`/`14.03`/` longer a quick cash option. It looks like early 2008 will be a bumpy road which the Fed will try and smooth out with more easing. The question is how much. By the end of December, the median dealer forecast was for two more 25 by cuts which would bring the funds rate to 3.75%.The bond market is bracing itself for even lower. Scott McIntyre, CFA Senior Portfolio Manager Jan 3, 2008 LOLSL sexal'u!lsny Ob6L el!nS lee-11S 1-119 Ise/\/\ ON 1u9we6euvW;9ssd;s9mq;noS }said Economic Summary First Southwest Asset Management The information in this report has been obtained from sources that we believe to be reliable. First Southwest Asset Management, Inc. does not guarantee the accuracy of said information, nor is First Southwest Asset Management, Inc. responsible for a reader's decision to adopt or reject any strategy or engage in any transaction. This material is intended for information purposes only. It is not intended as a solicitation for the purchase of any security. An Affiliate of First Southwest Company