HomeMy WebLinkAboutQuarterlyReport_2008-12-31
Financial Report and Investment Report
for Quarter Ended December 31, 2008
FFAASSTT FFAACCTTSS
Quarter Ended 12/31/2008
o
General Fund:
Revenue $8 million or 23.9% of current budget
o 7% greater than prior year due to increase in property tax
levy
o Sales tax (2 months collections) down 8%
o Development related revenue down 49%
o Court Fines down 23.5%
Expense projections adjusted to include position “freeze”
totaling $1.5 million for year. Quarterly variances:
o Personnel variances due to COLA and increased costs for
public safety
o All departmental operations less than prior year except for
Management Services, due to increase in Social Services
contracts Unallocated and unobligated Fund Balance (excess funds)
= $720K
o Total excess funds from previous years = $2.06 million
o Less authorized commitments:
Sanitation fuel adjustment $156K
o Estimated operating shortfall for YE 2009 $1.2 million
o Additional funds may accumulate during year due to cost
savings within the departments
Utility Funds:
Revenues are ahead of projections
o Electric revenues up $1.1 million or 9.75%
due to PCA increase and added revenue
from Citicorp
o Water revenue up $237K or 8% related to
growth and impacts of weather
o Wastewater revenue up 1.5% due to system
growth
Expenses are as expected
PROJECT UPDATE:
Major General Capital Projects:
Animal Shelter kennel upgrade – COMPLETED
Recreation Center – Phase 1 (new construction) –
COMPLETED
Phase 2 – (rehab existing facility) – demolition underway
Estimated completion April 2009
Project within budget
Final excess determined once project completed
Highway Monument Sign – Awaiting TXDOT design approval
Estimated completion – March 2009
Parking lot renovations
10% completed – Estimated completion May 2009
Major Utility Capital Projects:
Escalara elevated storage tank – completion
scheduled for October 2009
Park WTP Clearwell –completion April 2009
Smith Branch – SG3-A/SG-P1
San Gabriel WWTP Wet Weather & Irrigation
Improvements
2008 Street Rehabilitation – completion July 2009
HIGHLIGHTED INDICATORS
SELECTED STATISTICS
Cash & Investments 12/31/08 $50,002,107
Weighted average maturity : 107 days
Total Outstanding Debt:
GO/CO $58.8 million
Revenue Debt $57.3 million
GTEC Debt $27.3 million
TABLE OF CONTENTS
I. Executive Summary
Quarterly Financial Analysis.................................................................................1-3
Investments..........................................................................................................3-5
Internal Control........................................................................................................5
Capital Projects.......................................................................................................5
II. Reports
General Fund Revenue & Expense ........................................................................6
Major Fund Revenue Comparison ..........................................................................7
Investment Report - City ....................................................................................8-12
Investment Report – GTEC/GEDCO.....................................................................13
Internal Audit Report Summary.............................................................................14
Capital Improvement Project Summary – General Projects.............................15-16
Capital Improvement Project Summary – GUS Projects..................................17-18
Capital Improvement Project Summary - GTEC ...................................................19
Project Closeout Report........................................................................................20
1st Fiscal Quarter – 2009
Executive Financial Summary
Executive Summary
Quarter ended 12/31/08
I. Quarterly Financial Analysis
General Fund Revenues:
General fund revenues collected for the end of the first fiscal quarter of 2009 closely followed prior year collections
totaling $7,967,668 or 23.9% of current year budget and an increase of 7% over prior year, due to increased property
tax revenue in 2008. The sanitation fund was consolidated into the general fund for the current 2008/09 budget to
steam-line reporting.
Property tax revenues are typically received during the first and second quarters of the fiscal year. The amount of
revenue is based on the assessed value and is estimated using the County Assessor’s data. Deviations from
estimates in this revenue stream are mostly related to new construction and delinquency rates. When the economy is
strong, new construction numbers are usually high and the default rates are low. We are currently in an economy
downturn and will monitor this revenue stream closely in the coming months to identify any impacts to the current
budget, as well as, the 2009/10 budget. Property tax revenues are currently up 20% over prior year due to the
increased tax levy for 2009, delinquency rates will be monitored in the upcoming months to identify any trends.
$541,678 of sales tax revenue was collected in December
2008 for sales generated in October 2008. This collection
revenue is 8% lower than projections. Sales tax projections
are estimated to be $1 million less than budget, and 10%
less than prior year collections. The City also collects 1/8
cent sales tax to be used toward the reduction of property
taxes, and this decrease will impact the overall 2009/10
property tax rate.
Court fines are down 23.5% from prior year with 2,407
cases processed during 2009 versus 3,491 processed in the
prior year.
The City collects a 4 – 5% franchise fee on electrical, natural gas, cable, solid waste, and telephone revenues provided
by entities other than the City. The City has collected $161,200 or 14% of current year budget through the end of the
quarter. The City also collects a 2% franchise fee and an 8% return on investment fee from the City owned utilities
which totaled respectively, $326,521 and $1,353,560 through December or 20% of budget. These collections are up
6% over prior year.
Development related revenue is down $144,563 or 50% from
prior year and will contribute to the shortfall in general fund
revenues. The current slowdown in the economy is expected
to continue through the end of the 2009. As the economy
strengthens, development activity will increase and be
reflected in future budgets.
Revenues will be closely monitored to analyze and
proactively prepare for any potential shortfalls that may
impact current year projections and the 2009/10 budget.
1
1st Fiscal Quarter – 2009
Executive Financial Summary
General Fund Expenditures:
General fund expenditures for the end of the first fiscal quarter of 2009 closely follow prior year expenditures. Savings
from frozen positions will be realized in later quarters due to positions added to the budget on a staggered schedule.
Salaries and benefit expenditures in the quarter reached $4.9 million or 21% of budget with an additional $4.7 million or
55% of budget spent on operations. Environmental services spent $761,774 in the 1st fiscal quarter of 2009 and
received revenue of $1,147,129. This service was moved into the general fund in the current year budget.
The Transportation Services Division provides resources for street maintenance and repairs. Expenditures through the
1st quarter of 2009 were 23% of budget at $547,409. Prior year expenditures were $528,745 or 35.7% of total 2008
expenditures. Currently, five (5) frozen positions with an anticipated personnel savings of $316,541 are expected.
The Community Development Division provides resources for planning and development, as well as, building permit
and inspection processing. Anticipated personnel savings in this division for six (6) frozen positions is $230,330.
The Finance Division includes court fine processing through Municipal Court. Expenditures for the quarter are on par
with prior year at 30% of budget or $158,054.
Expenditures for Public Safety through the 1st quarter
are 30% of current budget with a total of $4.8 million
compared to $4.3 million or 32% in prior year.
Expected savings of $761,079 for eight (8) frozen
positions will be realized at year end.
Management Services includes City Management,
Council, Public Information and social service funding.
2 positions are currently frozen at an anticipated
savings of $201,264. Total expenditures for the 1st
quarter are $1 million compared to prior year of $847K.
Community Services includes parks and recreation
expenditures. Current expenditures total $2.3 million compared to $1.9 million in the prior year. Savings from two (2)
frozen positions are expected to yield $63,000 in the current year.
Allocations from the Joint Services Fund, for various administrative services, are also projected to be 4-5% less than
budget due to the cost savings within allocated departments.
Utility Revenues:
Electric Revenue is over 9% greater than 2007. Collections of $12.2 million or 18% of current year budget were
received through December 2009 compared to $11.1 million or 21% received at this time last year.
The 1.5% increase in wastewater revenue is a result of the implementation of the flat rate sewer last April 2007, as well
as, continued customer growth and expansion of the utility. Tap revenue is lower due to the slowdown in development
compared to previous years. Other revenue is on par with prior year.
Water revenue is up 5% over prior year due to the continued drought conditions experienced in Central Texas. As
with wastewater, tap revenue is down due to the economic slowdown. Although interest rates are lower than prior
year, the increased balances in the water fund provided greater interest income compared to prior year.
Utility revenues are significantly impacted by growth and weather conditions. Slowdown in the economy and housing
market continue to impact future revenues. Staff will monitor these trends over the upcoming months to identify areas
that may impact the current budget and 2009/10 CIP process.
Other Revenues:
2
1st Fiscal Quarter – 2009
Executive Financial Summary
Other Revenues:
Hotel Occupancy Tax revenue is 11% lower than prior year due to the slowdown of the economy. Staff will continue to
monitor revenues closely to evaluate the operating budget for the upcoming year. Future revenues could possibly
decrease as a result of the slowing economy.
Fuel revenues at the airport are lower than prior year due to the decrease in gas prices. This decrease will be
reflected in the current year fuel margin.
Cash Balance vs. Fund Balance:
The $11,358,835 cash balance in the General Fund represents a snapshot of the cash on hand at the end of the
2007/08 fiscal year. The general fund emergency reserves or contingency reserves were $5,850,000 at the end of the
fiscal year but were increased to $6,500,000 for the current budget year. The 2008/09 budget anticipated cash on
hand of $9,298,849, thus excess funds of $2.06 million were realized at the end of the fiscal year. This excess
primarily related to savings in personnel and operational spending along with a prior period revenue adjustment.
The Capital Project fund used $3.9 million from contingency reserves in the General Fund to purchase the Albertson’s
building. These contingency reserves will be repaid from bond proceeds to be issued in May 2009.
II. Investments
Compliance Statement:
The investment activity and strategies described in this report are in compliance with the Public Funds
Investment Act, City’s investment policy, and generally accepted accounting principles. This report includes the
investment position of the City at the end of the first fiscal quarter 2009.
Activity for the quarter primarily related to the reinvestment of maturing securities and diversification of the
portfolio. Existing bond balances will decrease in the coming months as construction draws are needed to fund
projects such as the recreation center completion and Oak Tree Bridge, along with wastewater improvements to
Smith Branch.
The Investment Report for the Quarter Ended December 31, 2008 and the supporting schedules are attached. A
summary of the investment balances at December 31, 2008 compared to the prior quarter is shown below for the
City and both component units.
CITY GTEC GEDCO
9/30/08 12/31/08 9/30/08 12/31/08 9/30/08 12/31/08
Total cash and security
investments
$53,215,379 $50,002,107 $18,636,437 $19,445,350 $2,277,713 $2,419,558
Unrealized gain $53,438 $306,876 $80,684 $179,448 $1,879 $4,388
Realized gain (loss) for
quarter
$0 $0 $0 $0 $0 $0
Economic conditions continued to deteriorate during the quarter. Yields fell dramatically while the government
decided how to implement the various “bail-out” plans.
In September, Fannie Mae and Freddie Mac were placed into conservatorship by the Treasury as part of the
rescue plan. Fannie and Freddie, as Government Sponsored Enterprises (GSE), have historically traded with an
3
1st Fiscal Quarter – 2009
Executive Financial Summary
implied federal government guarantee. The conservatorship plan strengthens that guarantee and reinforces the
federal backing to the GSEs. Much debate has centered on the role of the GSEs in the current economic
climate. Former Secretary Henry Paulson believes the GSEs provide a necessary role of providing mortgage
availability which is essential to eventually turning the corner on the housing crisis. Policymakers must determine
the amount of homeownership subsidies that are important in this environment. Policymakers decisions will
affect the course of the GSEs and will ultimately determine the market yields.
Stabilizing the banking community is also a major
goal of the “bail-out” plans. Arranging
closures/mergers, increasing government lending
programs, directly injecting capital, and temporarily
raising the Federal Deposit Insurance Corporation
(FDIC) insurance limit to $250,000 from $100,000,
have all been implemented. Ensuring that the City’s
financial institution deposits are safe remains
extremely important. The increased FDIC limit,
combined with regular collateral review for deposits
in excess of the insured limit, provides that margin of
safety. The temporary increase in FDIC insurance
will expire in December 2009.
The economy and markets continued to deteriorate and lowered yields considerably throughout the year. For
example, the City’s local government investment pools (TexPool and TexSTAR) began the year yielding
approximately 5.25% and ended the year yielding below 1.50%. Since December 30th, the target rate for
overnight fed funds was a range between 0.00% and .025% and we anticipate the pool yields to continue to drop
as a result of that action. They are currently +/-0.75%.
3/31/08 6/30/08 9/30/08 12/31/08
Managed portfolio yield 3.92% 3.41% 3.32% 2.31%
The City’s investment strategy is to “ladder” or stagger maturities, thus minimizing erratic interest rate
fluctuations. The current unrealized gain in the portfolio is due to higher yielding securities purchased before
market interest rates fell. The interest income, from these securities, diversifies and enhances the yields from
shorter-term deposits and investments. Maintaining safety of principal and adequate liquidity remain the City’s
investment portfolio objectives. Total managed portfolio yield was 2.31% on an annualized basis. The overall
yield is higher than the yield trend for the 3-month Treasury bill and the local government pools which are
currently at 0.22% and 0.76% respectively, as of January 30th.
City Portfolio balances have increased in the last few
years in direct correlation to the increase in contingency
reserves and debt proceeds issued for capital
improvement projects. The City’s investment portfolio
includes bank deposits, local government investment
pool balances, and federal agency and instrumentality
securities. All of these investments carry insurance or
an implied backing from the Federal Government.
Market conditions have created value in non-depository
bank deposits. These deposits are insured or
collateralized as required by Policy and state law. The Certificate of Deposit Account Registry Service (CDARS)
allows the City to deposit funds with a Texas financial institution. That institution then “spreads” the funds to
other banks throughout the CDARS system to effectively insure the total deposit. The Bank of New York acts as
custodian and functions to prevent deposits in excess of FDIC insurance levels at any one CDARS bank. Note:
4
1st Fiscal Quarter – 2009
Executive Financial Summary
With the temporary nature of the increased FDIC level, CDARS has chosen to maintain $100,000 deposit
limitations.
The City entered into a CDARS program with ViewPoint Bank in Plano, Texas for placement of funds to diversify
the existing portfolio. Yields were locked in at 3.32% for a 12 month certificate compared to yields of
approximately 2.75% from government backed securities.
III. Internal Control
Internal Control Program:
Internal controls are the practices performed by departments to provide management with reasonable assurance
that assets are safeguarded and transactions are authorized, valid, complete, and accurate. Elements of a good
internal control system include 1) separation of duties; 2) authorization; 3) documentation; and 4) reconciliation.
During the 1st quarter of the fiscal year several audits were performed and reported. These internal audits
validate the accuracy and validity of the City’s financial records by detail testing on individual transactions and
ensuring compliance with City’s financial and administrative policies.
A Travel audit was performed by reviewing individual expense reports and evaluating receipts to
ensure compliance with current travel policies. A procurement card audit was done to ensure
compliance with current purchasing policies. A Long Distance usage Audit was performed to prevent
excessive use. All bills greater than $1 are evaluated and substantiated. Fuel usage was audited
comparing gallons purchased with monthly usage to verify amounts. Petty Cash and cash drawer
audits were performed at various locations to verify cash on hand. A development fee audit was
performed by taking a random sample of Planning and zoning approved items and correlating them to
the development payment receipts in the financial system. A municipal court audits was performed
by looking at cases whereby community service or jail time credit was granted by the Judge. In these
cases, no payment was received therefore documentation is crucial.
No material weaknesses or issues were discovered. All identified items have been or are being
addressed by each department.
IV. Capital Projects
Capital Improvement Program:
The projects in the Capital Improvement Program (CIP) generally consists of infrastructure and related
construction and do not include small capital items such as furniture, equipment, and vehicles. Significant
maintenance projects, such as street overlay are not included in the capital project schedules.
These maintenance type projects are not capitalized as a fixed asset and are always cash-funded therefore, are
considered operational in nature and are included in the departmental operating budget.
A report showing the current year budget status as well as, project to date information on the approved capital
improvement projects is included in the quarterly financial report. Information on projects completed during the
quarter is also provided for review.
5
GENERAL FUND REVENUE & EXPENSE COMPARISON 2008/2009
For the Quarter Ended 12/31/2008
General Fund
1ST QUARTER PRIOR YEAR 1ST QUARTER
TOTAL PRELIMINARY 12/31/08 %ACTUAL 12/31/07 %YTD
BUDGET PROJECTIONS YTD BUDGET TOTAL YTD ACTUAL ACTUAL %
REVENUES:
Property Taxes 8,174,100 7,986,574 4,193,302 51.3% 7,541,643 3,495,580 46.4%697,722 19.96%
Sales Tax 7,011,360 6,045,670 541,678 7.7% 6,820,308 589,207 8.6%-47,529 -8.07%
Sales Tax (1/8 cent) 941,510 813,250 67,710 7.2% 916,625 73,651 8.0%-5,941 -8.07%
Franchise Fee/ROI 9,379,741 9,379,741 1,841,285 19.6% 9,168,941 1,734,244 18.9%107,041 6.17%
Development & Inspections 1,293,574 857,000 149,565 11.6% 1,158,433 294,128 25.4%-144,563 -49.15%
Court Fines 1,021,200 881,200 149,015 14.6% 1,013,699 194,845 19.2%-45,830 -23.52%
Parks & Recreation 1,586,720 1,529,720 229,711 14.5% 1,056,592 232,767 22.0%-3,056 -1.31%
Other 3,860,598 3,449,958 795,402 20.6% 3,910,362 816,559 20.9%-21,157 -2.59%
REVENUE WITHOUT ENVIRON. SVCS 33,268,803 30,943,113 7,967,668 23.9% 31,586,603 7,430,981 23.5%536,687 7.22%
Environmental Services 4,811,433 4,571,433 1,147,129 23.8%n/a 1,147,129 n/a
TOTAL REVENUES (1)38,080,236 35,514,546 9,114,797 23.9% 31,586,603 7,430,981 23.5%1,683,816 22.66%
(1) excludes transfers and SIP related fees
EXPENSES:
TRANSPORTATION
Personnel 1,279,187 962,647 223,142 17.4% 855,048 215,746 25.2%7,396 3.43%
Operations 1,116,047 1,116,047 324,267 29.1% 627,571 312,999 49.9%11,268 3.60%
TOTAL TRANSPORTATION 2,395,234 2,078,694 547,409 22.9% 1,482,619 528,745 35.7%18,664 3.53%
COMMUNITY DEVELOPMENT
Personnel 2,038,737 1,808,409 439,990 21.6% 1,830,062 458,873 25.1%-18,883 -4.12%
Operations 483,546 483,546 286,113 59.2% 447,440 277,305 62.0%8,808 3.18%
TOTAL COMMUNITY DEVELOP 2,522,283 2,291,955 726,103 28.8% 2,277,502 736,178 32.3%-10,075 -1.37%
FINANCE & ADMINISTRATION
Personnel 415,899 445,441 99,878 24.0% 350,054 87,683 25.0%12,195 13.91%
Operations 114,952 114,952 58,176 50.6% 121,724 53,123 43.6%5,053 9.51%
TOTAL FINANCE & ADMIN 530,851 560,393 158,054 29.8% 471,778 140,806 29.8%17,248 12.25%
FIRE
Personnel 5,762,912 5,530,553 1,312,826 22.8% 4,381,290 1,063,407 24.3%249,419 23.45%
Operations 1,071,706 1,071,706 672,762 62.8% 909,566 614,512 67.6%58,250 9.48%
TOTAL FIRE 6,834,618 6,602,259 1,985,588 29.1% 5,290,856 1,677,919 31.7%307,669 18.34%
MANAGEMENT SERVICES
Personnel 1,202,611 1,001,347 211,762 17.6% 817,222 194,271 23.8%17,491 9.00%
Operations 3,591,171 3,591,171 1,641,843 45.7% 3,173,421 1,470,589 46.3%171,254 11.65%
TOTAL MANAGEMENT SVCS 4,793,782 4,592,518 1,853,605 38.7% 3,990,643 1,664,860 41.7%188,745 11.34%
COMMUNITY SERVICES
Personnel 3,758,176 3,695,225 768,388 20.4% 3,152,475 718,842 22.8%49,546 6.89%
Operations 2,866,636 2,866,636 1,535,031 53.5% 2,253,631 1,170,740 51.9%364,291 31.12%
TOTAL COMMUNITY SERVICES 6,624,812 6,561,861 2,303,419 34.8% 5,406,106 1,889,582 35.0%413,837 21.90%
POLICE
Personnel 8,097,615 7,568,897 1,835,163 22.7% 6,735,432 1,640,426 24.4%194,737 11.87%
Operations 1,682,876 1,682,876 1,023,279 60.8% 1,669,458 1,010,763 60.5%12,516 1.24%
TOTAL POLICE 9,780,491 9,251,773 2,858,442 29.2% 8,404,890 2,651,189 31.5%207,253 7.82%
OPERATING EXP WITHOUT ENVIRON. SVCS.
Personnel 22,555,137 21,012,519 4,891,149 21.7% 18,121,583 4,379,248 24.2%511,901 11.69%
Operations 10,926,934 10,926,934 5,541,471 50.7% 9,202,811 4,910,031 53.4%631,440 12.86%
OPERATING EXPENSES 33,482,071 31,939,453 10,432,620 31.2% 27,324,394 9,289,279 34.0%1,143,341 12.31%
GUS (Environmental Services)
Personnel 58,172 59,310 14,307 24.6% n/a 14,307 n/a
Operations 4,517,211 4,517,211 747,467 16.5% n/a 747,467 n/a
TOTAL GUS 4,575,383 4,576,521 761,774 16.6% n/a 761,774 n/a
TOTAL OPERATING EXPENSES
Personnel 22,613,309 21,071,829 4,905,456 21.7% 18,121,583 4,379,248 24.2%526,208 12.02%
Operations 15,444,145 15,444,145 6,288,938 40.7% 9,202,811 4,910,031 53.4%1,378,907 28.08%
TOTAL OPERATING EXPENSES (2)38,057,454 36,515,974 11,194,394 29.4% 27,324,394 9,289,279 34.0%1,905,115 20.51%
(2) excludes capital related expenditures
VARIANCE
6
MAJOR FUND REVENUE COMPARISON 2008/2009
For the Quarter Ended 12/31/2008
Other Major Funds:
1ST QUARTER PRIOR YEAR 1ST QUARTER
TOTAL 12/31/08 %ACTUAL 12/31/07 %YTD
REVENUES:BUDGET YTD BUDGET TOTAL YTD ACTUAL ACTUAL %
Utility Fund Revenues:
ELECTRIC
Electric revenue 67,879,757 12,172,722 17.9% 51,833,477 11,091,581 21.4%1,081,141 9.75%
Electric tap revenue 450,000 71,258 15.8% 353,834 112,727 31.9%-41,469 -36.79%
Electric other revenue 725,000 211,028 29.1% 819,994 224,673 27.4%-13,645 -6.07%
TOTAL ELECTRIC REVENUE 69,054,757 12,455,008 18.0% 53,007,305 11,428,981 21.6%1,026,027 8.98%
WASTEWATER
Wastewater revenue 8,016,520 1,880,106 23.5% 7,423,190 1,853,046 25.0%27,060 1.46%
Wastewater tap revenue 250,000 39,331 15.7% 262,086 73,058 27.9%-33,727 -46.16%
Wastewater other revenue 203,000 27,767 13.7% 141,387 24,726 17.5%3,041 12.30%
TOTAL WASTEWATER REVENUE 8,469,520 1,947,204 23.0% 7,826,663 1,950,830 24.9%-3,626 -0.19%
WATER
Water revenue 12,811,966 3,188,429 24.9% 13,602,151 2,951,444 21.7%236,985 8.03%
Water tap revenue 450,000 68,399 15.2% 427,584 106,344 24.9%-37,945 -35.68%
Water other revenue 602,000 161,215 26.8% 850,187 183,704 21.6%-22,489 -12.24%
TOTAL WATER REVENUE 13,863,966 3,418,043 24.7% 14,879,922 3,241,492 21.8%176,551 5.45%
Other Fund Revenues:
CVB
HOT tax 380,000 67,416 17.7% 440,581 76,031 17.3%-8,615 -11.33%
Other Revenue 52,834 7,242 13.7% 79,384 6,281 7.9%961 15.30%
TOTAL CVB REVENUE 432,834 74,658 17.2% 519,965 82,312 15.8%-7,654 -9.30%
AIRPORT
Fuel revenue 2,500,000 537,702 21.5% 2,765,552 625,460 22.6%-87,758 -14.03%
Leases and Rents 440,880 130,301 29.6% 521,871 118,937 22.8%11,364 9.55%
Other revenue 106,780 9,344 8.8% 96,713 11,210 11.6%-1,866 -16.65%
TOTAL AIRPORT REVENUE 3,047,660 677,347 22.2% 3,384,136 755,607 22.3%-78,260 -10.36%
Total Major Fund Revenues* 94,868,737 18,572,260 19.6% 79,617,991 17,459,222 21.9%1,113,038 6.38%
* Does not include transfers
VARIANCE
7
CITY BALANCE COMPARISON BY QUARTER - December 31, 2008
Balance Balance Balance Balance
INVESTMENT BALANCES BY TYPE 3/31/08 6/30/08 9/30/08 12/31/08
U. S. TREASURY SECURITIES 998,842
U. S. GOVERNMENT AGENCY SECURITIES 38,495,235 40,541,873 31,755,785 21,670,527
TEXPOOL 4,725,606 1,535,916 1,808,437 8,682,911
TEXSTAR 14,552,945 26,371,638 16,194,864 13,857,210
TEXAS TERM - Texas Daily 159,793
JPMORGAN CHASE- Overnight Investment 2,390,952 2,045,529 3,281,997 3,706,248
JPMORGAN CHASE - Local Depository 238,178 271,066 174,296 70,020
VIEWPOINT BANK - Money Market 15,191
CERTIFICATES OF DEPOSIT - CDARS 2,000,000
TOTAL CASH AND INVESTMENTS 61,561,551 70,766,022 53,215,379 50,002,107
Note: Balances shown are at book value.
City Investment Balances
as of 12/31/08
City
Types of Investments
as of 12/31/08
8
PORTFOLIO SUMMARY - By Maturity
07/08 07/08 07/08 08/09
Maturity Time Frame 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
0-6 Months 37,119,080 48,967,341 38,476,324 36,839,332
6-12 Months 15,273,639 10,540,921 7,629,524 8,093,563
12-18 Months 3,043,184 6,163,267 5,050,626 3,018,609
18-36 Months 6,125,648 5,094,493 2,058,905 2,050,603
61,561,551 70,766,022 53,215,379 50,002,107
07/08 07/08 07/08 08/09
Liquidity Indicators 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
Weighted Average Maturity 180 148 134 107
Maturities < 12 months 85.11%84.09%86.64%89.86%
Long term investments, securities with a 12 month or greater maturity, decreased from 14% at September 30, 2008,
to 10% at December 31, 2008. Maturities are matched with projected disbursement requirements, such as capital
improvement projects and debt service payments, thus maintaining a staggered maturity schedule that hedges the
portfolio from market volatility is recommended. Seventy-four percent of the portfolio will mature within the next six
months, with 16% maturing within 12 months. These maturities match buildout and funding of current projects, as
well as, debt service payments.
9
INVESTMENTS OUTSTANDING - December 31, 2008
9/30/08 12/31/08
Purchase Invest Par Coupon Book Market Book Accrued Investment Market Unrealized
Date Description Number Maturity Value Yield Value Value Value Interest Yield Value Gain/Loss
U. S. GOVERNMENT AGENCY SECURITIES:
12/22/06 Federal Home Loan Bank (FHLB)3133XHTU6 12/12/08 2,000,000 5.00% 2,000,276 2,010,589 Matured ---- ------------
Source: Operating / Reserves
05/08/07 Federal National Mortgage Assn (FNMA)31398AAF9 11/03/08 2,000,000 4.90% 1,999,778 2,005,168 Matured ---- ------------ Source: Operating / Reserves
06/14/07 Federal Farm Credit Banks (FFCB)31331XQM7 02/23/09 288,000 5.00% 287,671 290,620 287,879 3,600 5.30% 290,352 2,473
Source: '07 Bonds -split w/GTEC
06/21/07 Federal Farm Credit Banks (FFCB)31331THX2 10/24/08 2,000,000 3.63% 1,998,015 2,001,803 Matured ---- ------------
Source: Operating / Reserves
06/21/07 Federal National Mortgage Assn (FNMA)31359MXL2 01/26/09 1,500,000 4.00% 1,494,251 1,506,550 1,498,750 15,000 5.26% 1,505,560 6,810 Source: Operating / Reserves
07/26/07 Federal Home Loan Bank (FHLB)3133XBJP1 10/17/08 2,000,000 4.57% 1,999,518 2,002,573 Matured ---- ------------
Source: Operating / Reserves
09/26/07 Federal Home Loan Bank (FHLB)3133M7N77 02/17/09 1,000,000 5.55% 1,003,754 1,010,861 1,001,270 13,863 4.51% 1,008,197 6,927 Source: Operating / Reserves
09/26/07 Federal National Mortgage Assn (FNMA)31359MUQ4 03/16/09 1,000,000 3.13% 993,992 1,001,254 997,269 7,812 4.49% 1,006,824 9,555
Source: Operating / Reserves
09/26/07 Federal National Mortgage Assn (FNMA)31359MUW1 04/14/09 1,000,000 3.85% 996,684 1,005,353 998,230 8,235 4.50% 1,010,936 12,706 Source: Operating / Reserves
12/19/07 Federal Home Loan Bank (FHLB)3133M8YA6 06/03/09 1,000,000 6.30% 1,015,817 1,022,281 1,009,935 4,900 3.86% 1,026,816 16,881
Source: Operating / Reserves
12/19/07 Federal Home Loan Bank (FHLB)3133XGYT5 12/11/09 1,000,000 5.00% 1,013,051 1,024,814 1,010,319 2,778 3.85% 1,036,119 25,800
Source: Operating / Reserves
12/19/07 Federal Home Loan Bank (FHLB)31339XNW0 06/30/10 1,000,000 5.00% 1,018,642 1,032,353 1,015,975 139 3.87% 1,051,859 35,884 Source: Operating / Reserves
12/20/07 Federal National Mortgage Assn (FNMA)31359MZH9 10/15/08 1,000,000 4.50% 1,000,141 1,001,134 Matured ---- ------------
Source: '07 Bonds
12/20/07 Federal National Mortgage Assn (FNMA)3136F3D45 12/24/08 1,026,000 3.00% 1,023,453 1,027,207 Matured ---- ------------ Source: '07 Bonds
01/29/08 Federal Home Loan Bank (FHLB)3133XNY86 01/14/09 1,500,000 3.50% 1,503,280 1,503,633 1,500,414 13,125 2.72% 1,503,140 2,726
Source: Operating / Reserves
01/30/08 Federal National Mortgage Assn (FNMA)3136F55H0 08/13/09 1,000,000 4.50% 1,013,958 1,010,915 1,009,932 11,250 2.84% 1,024,335 14,403 Source: Operating / Reserves
01/30/08 Federal Home Loan Mortgage Corp (FHLMC) 3128X33F8 01/25/10 1,000,000 4.38% 1,019,154 1,017,827 1,015,517 10,937 2.87% 1,032,552 17,035
Source: Operating / Reserves
03/06/08 Federal Farm Credit Banks (FFCB)31331YSR2 02/08/10 2,000,000 2.63% 2,003,793 1,989,924 2,003,092 13,125 2.48% 2,030,917 27,825 Source: Operating / Reserves
03/06/08 Federal Home Loan Bank (FHLB)31339YGY2 07/14/10 1,000,000 5.00% 1,040,263 1,032,870 1,034,628 12,500 2.66% 1,051,572 16,944
Source: Operating / Reserves
04/24/08 Federal National Mortgage Assn (FNMA)31359MVE0 05/15/09 1,500,000 4.25% 1,516,287 1,511,780 1,509,743 8,146 2.47% 1,522,688 12,945
Source: Operating / Reserves
04/24/08 Federal Home Loan Bank (FHLB)3133X9H60 11/30/09 1,000,000 4.07% 1,014,628 1,013,526 1,011,486 3,500 2.77% 1,026,284 14,798 Source: Operating / Reserves
06/26/08 Federal Home Loan Mortgage Corp (FHLMC) 3137EAAA7 02/17/09 1,700,000 4.88% 1,712,601 1,714,001 1,704,262 20,719 2.88% 1,712,196 7,934
Source: '07 Bonds
06/26/08 Federal Home Loan Bank (FHLB)3133M9FC1 08/14/09 3,000,000 6.50% 3,086,778 3,084,971 3,061,826 48,750 3.09% 3,111,826 50,000 Source: Operating / Reserves
TOTAL INVESTMENT SECURITIES 31,755,785 31,822,007 21,670,527 198,379 21,952,173 281,646
TexPool 12/31/08 1,808,437 1,807,605 8,682,911 8,693,244 10,333
TexSTAR 12/31/08 16,194,864 16,182,912 13,857,210 13,872,107 14,897 Certificates of Deposit - CDARS (12 months)11/20/09 3.32%2,000,000 3.32% 2,000,000
TOTAL INVESTMENT BALANCES 49,759,086 49,812,524 46,210,648 198,379 46,517,524 306,876
CITY DEPOSITORY
JPMorgan Chase**12/31/08 0.15% 174,296 174,296 70,020 0.15% 70,020
JPMorgan Chase Overnight Security**12/31/08 0.02% 3,281,997 3,281,997 3,706,248 0.02% 3,706,248
ViewPoint Bank - Money Market 12/31/08 3.00%15,191 3.00% 15,191
TOTAL CASH AND INVESTMENT BALANCES 53,215,379 53,268,817 50,002,107 198,379 50,308,983 306,876
Balances and rates as of 12/31/08.
**Funding of outstanding checks presented for payment, interest earned netted against bank service changes.
10
TRANSACTION LISTING - SECURITIES - December 31, 2008
Purchase Maturity / Discount / Par Investment
Date Description Call Coupon Value Yield Comments
PURCHASES:
11/20/08 Certificate of Deposit Account Registry Service (CDARS) 11/20/09 3.32% 2,000,000 3.38%Ongoing staggered maturity
Source: Operating/ Reserves investment strategy
MATURITIES:
12/20/07 Federal National Mortgage Assn (FNMA) 10/15/08 4.50% 1,000,000 4.14%Ongoing staggered maturity
Source: '07 Bonds investment strategy
07/26/07 Federal Home Loan Bank (FHLB)10/17/08 4.57% 2,000,000 5.12%Ongoing staggered maturity
Source: Operating / Reserves investment strategy
06/21/07 Federal Farm Credit Banks (FFCB)10/24/08 3.63% 2,000,000 5.19%Ongoing staggered maturity
Source: Operating / Reserves investment strategy
05/08/07 Federal National Mortgage Assn (FNMA)11/03/08 4.90% 2,000,000 5.03%Ongoing staggered maturity
Source: Operating / Reserves investment strategy
12/22/06 Federal Home Loan Bank (FHLB)12/12/08 5.00% 2,000,000 4.93%Ongoing staggered maturity
Source: Operating / Reserves investment strategy
12/20/07 Federal National Mortgage Assn (FNMA)12/24/08 3.00% 1,026,000 4.08%Ongoing staggered maturity
Source: '07 Bonds investment strategy
ALL SECURITIES REDEEMED AT MATURITY, THEREFORE NO GAIN OR LOSS WAS REALIZED.
11
TRANSACTION LISTING - INVESTMENT POOLS - December 31, 2008
07/08 07/08 07/08 08/09
2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
Balance Market Value Balance Market Value Balance Market Value Balance Market Value
Description 03/31/08 03/31/08 6/30/08 6/30/08 9/30/08 9/30/08 12/31/08 12/31/08 Comments
TexPool 4,725,606 4,726,976 1,535,916 1,535,716 1,808,437 1,807,605 8,682,911 8,693,244 AAA Rated Pool -
$1 per $1 value
Current value:
$1.00119 per $1
TexSTAR 14,552,945 14,556,612 26,371,638 26,362,197 16,194,864 16,182,912 13,857,210 13,872,107 AAA Rated Pool -
$1 per $1 value
Current value:
$1.001075 per $1
(Any changes in market value during quarter were within minimum guidelines unless noted.)
12
Balance Balance Balance Balance
INVESTMENT BALANCES BY TYPE 3/31/08 6/30/08 9/30/08 12/31/08
U. S. GOVERNMENT AGENCY SECURITIES 17,247,678 16,794,788 15,297,327 10,542,265
TEXPOOL 1,502,292 711,428 398,760 6,113,996
TEXSTAR 3,324,141 3,817,356 2,940,350 2,789,089
TOTAL CASH AND INVESTMENTS 22,074,111 21,323,572 18,636,437 19,445,350
Note: Balances shown are at book value.
Liquidity Indicator / Weighted Average to Maturity 277 232 186 118
Balance Balance Balance Balance
INVESTMENT BALANCES BY TYPE 3/31/08 6/30/08 9/30/08 12/31/08
U. S. TREASURY SECURITIES 1,256,428 1,254,636 1,252,843 501,051
TEXSTAR 1,892,287 864,466 1,024,870 1,990,507
TOTAL CASH AND INVESTMENTS 3,148,715 2,119,102 2,277,713 2,491,558
Note: Balances shown are at book value.
Liquidity Indicator / Weighted Average to Maturity 117 120 61 12
Georgetown Transportation Enhancement Corporation
For the Quarter Ended 12/31/08
Georgetown Economic Development Corporation
For the Quarter Ended 12/31/08
13
Total Exceptions
Travel Audits
Expense Reports generated 156 -One employee did not complete a Travel
Reports audited 53 Request Form
Violations 3 -Two employees did not return a travel Expense
Report or their Procurement Card Expense Report
for the month in which the travel charges occurred
Procurement Card Audits
Expense Reports generated
Total dollars spent 223,312.53$ -One employee's Report missing a second
Reports audited 58 authorization signature
Violations 2 -One employee's Report missing a receipt
Long Distance Audits
Calls over $1.00 104
Call explanations requested 28
Calls reimbursed to City 3 -Three personal long-distance calls made from
Total amount reimbursed 4.47$ a City phone line
Fuel Usage Audit
Diesel gallons purchased 19,804
Unleaded gallons purchased 9,851
Averaged rate billed-diesel 3.26$
Averaged rate billed-gasoline 2.77$
Amount paid 91,552.92$
Petty Cash Audits (Once per quarter)
Cash boxed audited 9
Total cash amount 3,225.00$
Violations 0
Cash Drawer Audits (Once per quarter)
Drawers audited 26
Total cash amount 5,480.00$
Violations 0
Developmental Services Audit
Approved items 58
Audit selection 11
Violations 0
Internal Audit Report Summary
For the First Fiscal Quarter, 2008-2009
14
Capital Improvement Project Summary – General Projects
First Quarter 2009
Animal Shelter
Project is complete with the exception of a few touch up items such as,
bolting together cat cages, hanging shelving, and installing guillotine doors
in the dog pins. These final items will be completed in February.
Recreation Center
Phase I of the project is complete and in operation. Phase II will
commence the first week in February with the interior demolition of the
original 18,000 of the facility. This phase will take approximately two
months to complete. During construction the original gymnasium and
racquetball courts will remain closed to the public because of fire code
compliance requirements. Most of the work in this phase will be interior
renovation however, the original section’s roof will be replaced, all of the
original HVAC is scheduled for replacement, and the Teen Center will be
given a new entrance structure. Work is 75% complete.
Parking Lot Additions
The Community Center and Bark Park parking lots have been graded and
the contractor is preparing the mix base for these and the 8th Street
Parking. We are awaiting the installation of a new wastewater sleeve in
the existing pipe under the west City Hall lot before starting that lot. This
work is being done by GUS and is expected to be completed some time in
February. The parking lot at the GMC is in an administrative rezoning re-
platting process and should be ready for construction in February. We
expect all lots to be complete by May 2009. Work is 10% complete.
Highway Monument Sign
We have TxDOT requirements for constructing the sign in their right-of-
way. Design drawings are complete and awaiting final approval of the
design. Preliminary pricing is $48,700 for the sign construction only;
landscaping, irrigation and lighting will be additional. After the design is
approved, we will forward to TxDOT for their final approval before
beginning construction. Construction should begin in late February and
complete in late March. Work is approximately 15% complete.
15
Wayfinding Signs
Most of the signs have been permitted and are being installed along
Austin Ave and University Drive. There are a few of the signs on
University that are in the TxDOT right-a-way and will require some
additional manipulation to get these erected. All signs are expected to be
installed before the end of February. To date work is approximately 50%
complete.
Police Evidence Storage
The building was designed, purchased and funds were encumbered for
the erector in 2007/08. The slab construction was approved by Council in
January. We are currently working through the City development process
with regards to possible rezoning requirements. We anticipate being able
to begin construction by March 2009 and complete the work in May. To
date work is approximately 20% complete.
Police Impound Lot
The task order has been signed and returned to Steger Bizzell Engineers
to begin the design work. The design process will require approximately
60 days to complete. Staff personnel will act as construction managers for
this project thereby reducing the overall cost of the project. Work is 5%
complete.
CVB Relocation/Renovation
Drawings were performed in house and approved for construction by
Building Inspection to renovate part of the Parks Administration Building
for CVB offices. Construction has begun and all of the electrical, HVAC
and drywall work have been completed. Painting, electrical trim and carpet
remain to complete the project. Work should be completed by the end of
February and is approximately 70% complete.
Watering Mules Sculpture
Construction of the curb to enclose the sculpture base has been
completed in front of Council Chambers. The artist has been notified that
we are ready for him to commence his phase of the work. When he is
finished, landscaping, irrigation and lighting will be installed to complete
the project. We anticipate another 45 days to complete work. The project
is approximately 25% complete.
16
Capital Improvement Projects
For the Quarter Ended 12/31/08
Division Total PTD
Project Budget Exp. Enc. Balance Budget Costs Balance Status
Y-T-D
2008/09 (000s)Project to Date (000s)
Stormwater
1BE Maple Street Culverts 950 0 40 910 1,100 40 1,060
1BF San Gabriel Park Bank Erosion 250 0 0 250 550 5 545
1BG Stormwater Inventory 150 0 0 150 300 0 300
1BH Oak Tree Drive Bridge 523 32 (31)522 1,123 79 1,043
5AB Churchill Farms 25 0 0 25 50 0 50
5AG Railroad Drainage 35 0 0 35 197 40 157
5AH San Gabriel Park Retaining Wall 200 0 0 200 400 0 400
5AI 18th & Pine Drainage 58 0 0 58 116 0 116
5AJ Blue Hole Park River Banks 31 0 0 31 63 5 58
5AK C&G 2007 300 0 0 300 400 0 400
51A Northwest @ IH35 325 0 0 325 325 0 325
51B Williams Gateway 700 0 0 700 700 0 700
51C TOD 75 0 0 75 75 0 75
Total Stormwater $3,622 32 9 $3,581 $5,399 $168 $5,230
Irrigation
5IB Pecan Branch Reuse Line 0 318 (316) (2)4,250 1,100 3,150 Design
5IC San Gabriel Park Line Upgrades 100 0 0 100 750 0 750
Total Irrigation $100 318 (316)$98 $5,000 $1,100 $3,900
Wastewater
1BC 2008 Street Rehabs 0 0 332 (332)0 332 (332)
2BA 2006 Annexations 3,740 5 (1)3,736 3,740 244 3,496
2BB Wastewater Master Plan Update 0 2 0 (2)75 101 (26)
3AL Rock Street Lift Station 0 0 0 (0)00(0)
3AY South Fork: Phase B & C1 0 2,629 0 (2,629)1,500 2,640 (1,140)Complete
3BB San Gabriel Plant Upgrade 0 747 (744) (3)696 3,500 (2,804)Design
3BD Smith Branch / SG Interconnect 0 1 0 (1)7,220 688 6,532 Design
3BF Cimaron Hills Plant Expansion 260 11 (11)260 580 39 541 Design
3BI Smith Branch Interceptor Upgrade 0 15 (15)0 0 177 (177)
303 Wastewater Line Upgrades 250 0 0 250 625 25 600
304 Edwards Aquifer Compliance 1,250 2 (2)1,250 2,650 32 2,618
Total Wastewater $5,500 3,412 (441)$2,529 $17,086 $7,779 $9,307
Water
1AA 13th Street Rehab 0 (1)010(1)1
1BC 2008 Street Rehab 0 464 142 (606)0 606 (606)
2AT Berry Creek Booster Upgrade 200 0 0 200 400 0 400
2AU Leander Rd GST 75 0 0 75 150 0 150
2AV Park Plant Clearwell 0 1,043 (1,035) (8)1,500 2,024 (524)Design
2AX West Loop: DB Wood to CR 265 750 0 0 750 1,500 0 1,500
2AY Escalera Elevated Storage Tank 0 519 (519)0 1,725 2,326 (601)Design
2AZ 2005 Annexations 800 0 0 800 1,600 15 1,585
2BA 2006 Annexations 4,929 16 (2)4,915 7,129 260 6,868
2BB Master Plan Updates 0 (4)0 4 75 48 27
22A Sun City Pump Station 300 0 0 300 300 0 300
22B Southlake WTP 1,000 0 0 1,000 1,000 0 1,000
22C Leak Detection Program 250 0 0 250 250 0 250
22D Street Maintenance 500 0 0 500 500 0 500
22E Town Square District 250 0 0 250 250 0 250
22F Lake Ware Clearwell 2,300 0 0 2,300 2,300 0 2,300
22G West Lp- Rckmoor To Thousand 400 0 0 400 400 0 400
5IB Pecan Branch Reuse Line 0 0 80 (80)080(80)
204 Water Line Upgrades 1,301 48 (26)1,279 3,679 369 3,310
Total Water $13,055 2,085 (1,360)$12,935 $22,758 $5,122 $17,636
17
Capital Improvement Projects
For the Quarter Ended 12/31/08
Division Total PTD
Project Budget Exp. Enc. Balance Budget Costs Balance Status
GTEC
51A Economic Development Projects 942 0 0 942 1,817 0 1,817
51B NW Blvd Bridge 65 4 (0)61 65 25 40
51C Sierra Ridge 694 0 0 694 694 0 694
51D Tx Outdoor Power Equip 300 0 0 300 300 0 300
5QC Southwest Bypass 900 36 (35)899 3,360 1,586 1,774 Design
5QG Arterial SE1: Inner Loop / SH 130 10,765 19 (19)10,765 34,580 1,448 33,133 Design
5QP 500 South Austin Avenue 326 0 0 326 1,338 407 932
5QU 501 South Austin Ave 556 556 0 0 1,619 556 1,063
Total GTEC $14,548 $614 ($54)$13,988 $43,773 $4,021 $39,752
Y-T-D
2008/09 (000s)Project to Date (000s)
19
Completed Projects
For the Quarter Ended 12/31/08
Total Total
Completed Projects Budget Exp. Budget Costs Variance Note
Water & Wastewater
3AY South Fork: Phase B & C1 0 11 1,500 2,640 (1,140)
1AA
General Capital Projects
Totals $0 $11 $1,500 $2,640 ($1,140)
Notes:
Project to DatePrior years
Year End
20