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HomeMy WebLinkAboutFY 1999 Annual Investment Report �io�aZ'�eaz ��day ,S'e,ete e�oz 30, 199y INVESTMENT COMMITTEE MEETING 12/08/99 *Annual Review, FY 99 Introduction I. Portfolio Summary II. Performance Summary III. Interest Income Summary IV. Collateral Review V. Broker Selection Process VI. Summary *Consideration of Change to Broker/Dealer List *Minutes Review *Appendices Appendix A - Investment Portfolio by Type of Asset Appendix B - Investment Portfolio by Fund Appendix C - Investment Purchases Appendix D - Investment Maturities Appendix E - Investment Maturities by Fund at September 30, 1999 Appendix F - End of Month Reports October 1998 - September 1999 *General Discussion and Questions To Investment Committee Members From Vicki Rodriquez, Budget and Treasury Manager Date December 8, 1999 Subject Annual Investment Performance Report The City of Euless Investment Policy, revised and adopted by the City Council in January 1998, requires that the City Council and City Manager receive quarterly and annual reports of investment performance. The purpose of this report is to provide a means for Council members and staff to regularly review and monitor the City's investment performance. Attached is the City's pooled funds portfolio for the fourth quarter of Fiscal Year 1998-99 and information for all funds for the same period. The City's investment policy provides the general framework for the investment of City funds. The policy emphasizes the City's objective of safety, liquidity, and yield , in that order. The investment policy complies with the Public Funds Investment Act effective September 1 ,1997 in all aspects including reporting. The fourth quarter report of FY 1999 is presented in a format that has been outlined in the investment policy. This report is for all funds and shows the market value at 6/30/99, changes in market value, the market value at 9/30/99, and the book value, market value, and maturity date for each investment. As required, the report indicates compliance with the adopted investment strategies, and is signed by each investment officer of the City as designated by the Investment policy. i INTRODUCTION This report is written and submitted in accordance with Texas State law, specifically Tex. Rev. Civ. Stat. Ann. Art. 4413 (34C) Section 4, which states that "at least once each year, the investment officer of a state agency or political subdivision shall prepare a written report concerning the agency's or subdivision's local funds investment transactions for the preceding year and describing in detail the investment position of the agency or subdivision as of the date of the report." The City's investment policy designates the Director of Finance as the responsible manager for the City's investment program and as such has delegated the daily investment procedures to the Budget and Treasury Manager. In compliance with the City's investment policy, the Cash & Debt Department fulfills four main objectives: compliance, safety, liquidity and yield, in that order. Compliance is maintained through regular reporting to City management on a monthly, quarterly and annual basis. Safety is insured by 1) investing only in those securities allowed by Art. 842(a-2, V.T.C.S.) entitled the "Public Funds Investment Act of 1987" with revisions in 1989, 1991, 1993,1995 and 1997; 2) using delivery vs. payment for all purchases (payment for securities is made upon delivery); 3) protecting all non-government securities. (cash and bank certificates of deposit) with collateral in the form of government securities which are pledged to the City of Euless and safekept at a third party institution; 4) diversifying investment purchases into different security markets to minimize individual market risk. Liquidity is met by matching investment terms to future operating cash needs such as payroll, accounts payables, debt service and capital improvement disbursements. Furthermore, investment in money market funds and local government investment pools provides the safety and daily liquidity needs of the City. The yield or rate of return which the City receives is measured against the average 90 day treasury bill yield as set by the investment policy. This year we have been able to exceed this benchmark by an average of 59 basis points. The information contained in this report will quantitatively and graphically explain the achievement of these City objectives for fiscal year 1998-99. 2 Investment Strategy Compliance The strategy for all pooled funds is to assure that cash flows are matched with projected needs and assume adequate liquidity and safety. This has been accomplished by purchasing high quality securities in a laddered structure and by utilizing an investment pool (See Appendix E). The following purposes are also considered when investing, -Operating Funds may purchase high quality short-to medium-term securities with a weighted average maturity of 60 to 90 days. These funds include: 101 General Fund 510 Drainage Utility 201 Hotel-Motel Tax Fund 520 Recreation Classes Fund 210 1/2 Cent Sales Tax-Operations 521 Arbor Daze Fund 220 Crime Control& Prevention District 530 Softball World-Operations 230 Police Drug- DEA Awards 540 Golf Course Operations 231 Police Drug-State Awards 550 Athletic Complex operations 232 Ft. Worth DEA Task Force 601 Equipment Replacement Fund 234 LLEBG-97 610 Health Insurance Fund 235 LLEBG-98 615 Risk Management Fund 501 Water& Sewer Fund -Funds for Capital Improvement Projects(CIP) and Special Purposes may purchase securities which allow for flexibility and unanticipated project outlays by having a portion of their investments in highly liquid securities(See Appendix E). The stated final maturity dates of the securities should not exceed the estimated project completion date. These funds include: 301 Developer's Escrow Fund 502 Water&Sewer-CIP 305 Streets& Drainage-CIP 505 Water Impact Fees Fund 310 1/2 Cent Sales Tax-CIP 508 Wastewater Impact Fees Fund 320 General Capital Projects Fund 511 Drainage CIP 325 Police Facility Construction Fund 552 Athletic Complex CIP-Phase II -Debt Service Funds should assure adequate liquidity to cover the debt service obligation on the required payment date. These funds include: 401 Debt Service/General Obligation 531 Softball World Debt Service 410 1/2 Cent Sales Tax-Debt Service 541 Golf Course Debt Service 506 Water/Sewer Debt Service -Emergency, Contingency, and Debt Service Reserve funds will have the ability to generate a dependable revenue stream to the appropriate fund. The stated final maturity dates of securities should not exceed five years(See Appendix E). These funds include: 102 General Fund-Emergency 211 1/2 Cent Sales Tax-Bond Reserve 103 General Fund-Contingency 507 Water&Sewer-Emergency Fund Based on the above strategies, the investment portfolio reported herein is in compliance with the relevant provisions of the investment policy and the Public Funds Investment Act. 'V'5�,'or 27 Loretta Getchell, 156656r Of Finance 01Vicki Rodriquez, Budget and Treasury Mena r 3 I. PORTFOLIO SUMMARY The City's investment portfolio at the end of the fiscal year, September 30, 1999, is summarized by instrument and by maturity as shown below. Distribution by Instrument % of Average Avg. Yield Instrument Cost Portfolio Yield Prior Year Agencies 19,486,174 68.62% 5.23% 5.62% Treasuries 499,297 1.76% 5.47% 5.47% Money Market 8,404,936 29.60% 5.20% 5.46% CD's 5,000 0.02% 5.00% 5.00% 28,395,407 100.00% This table shows that the majority of City funds, approximately 70% are invested in treasuries and government agency securities which provide a high level of safety. As of the date of this report, the yield on these investments ranged from 4.80 to 6.03%. When compared to prior year's levels, the yield on our portfolio has trended down. However, the Federal Reserve has raised interest rates three times since June. Federal Reserve Chairman Alan Greenspan suggested that the Fed would take a neutral stance towards further rate changes. Interest rates have followed an upward trend in the past few months. Our portfolio should show an increase in the coming months as maturing funds are reinvested at higher rates. Distribution by Maturity # of days Cost % of Portfolio 1 - 30 $9,923,115 34.9% 31 - 90 2,755,594 9.7% 91 - 180 5,516,978 19.4% 181- 365 6,458,450 22.7% Over 365 3,741,271 13.2% $28,395,407 100.0% This table reflects the degree of liquidity in the City's portfolio with the ability to access over 64% of the portfolio within six months. This strategy was followed not only to meet cashflow requirements, but also because this time frame provided the best yields for the securities available at the time of purchase. An additional 23% matures within one year. The remaining 13% is invested beyond one year. We were able to comply with our investment policy by using emergency funds, reserve funds, escrow funds, and bond proceeds for these investments. Oy Instrument By Days to Maturity 0% 13% a ■ 1 -30 30% I ®Agencies 35% ® 31 -90 ❑Treasuries 23% ® 91 -180 0 Money Market ® 181-365 2% o ■CD's 68/o ❑Over 365 19% 10% 4 City of Euless Pooled Portfolio Summary for Quarter Ending September 30, 1999 Cost Book Market Principal Only Value Value Investments at June 30, 1999 30,851,224.16 30,963,347.21 30,885,811.00 Investment Purchases 10,896,476.09 Investment Maturities (13,515,179.79) Investment Sales 0.00 Dividends Reinvested (Pools) 101,362.41 Investments at September 30, 1999 28,333,882.87 28,439,513.29 28,373,164.54 5 Summary of Investments by Fund The following is a summary of investments held by each fund at June 30 and September 30, 1999. The changes include all investment purchases, maturities and expenses that occurred during the last quarter of 1999. Investment Securities Investment Securities Increase/ at Market Value at Market Value Decrease 06/30/99 09/30/99 In Fund 101 7,009,605.51 6,041,887.16 (967,718.35) End of Year Payments and Accurals 102 491,250.00 493,437.50 2,187.50 103 491,250.00 493,437.50 2,187.50 201 150,379.25 152,333.07 1,953.82 210 757,906.73 627,319.33 (130,587.40) 211 959,273.42 910,587.96 (48,685.46) 220 200,276.61 402,846.32 202,569.71 230 389,571.30 391,024.84 1,453.54 231 20,756.68 0.00 (20,756.68) 232 10,037.02 10,167.43 130.41 234 26,354.18 16,653.24 (9,700.94) 235 37,093.55 22,462.55 (14,631.00) 301 1,521,049.30 1,631,059.23 110,009.93 305 4,130,876.40 3,434,453.37 (696,423.03) Capital Outlay 310 1,131,962.42 1,136,614.42 4,652.00 320 121,238.39 92,552.95 (28,685.44) 325 848,696.75 658,143.33 (190,553.42) Capital Outlay 401 443,578.96 95,954.44 (347,624.52) Payment of Debt requirements 501 5,844,950.00 5,637,849.10 (207,100.90) End of Year Accurals 502 1,152,535.01 794,189.89 (358,345.12) Capital Outlay 505 2,126,961.24 944,222.07 (1,182,739.17) Split out Wastewater Impact Fees 507 495,312.50 495,625.00 312.50 508 0.00 1,187,448.14 1,187,448.14 Split out Wastewater Impact Fees 510 673,827.59 503,968.12 (169,859.47) 511 109,355.11 211,992.42 102,637.31 521 104,973.71 106,337.59 1,363.88 530 240,168.12 344,035.23 103,867.11 540 0.00 75,684.53 75,684.53 552 0 70,543.05 70,543.05 601 449,312.41 452,571.11 3,258.70 610 303,366.79 285,969.27 (17,397.52) 615 643,892.05 651,794.38 7,902.33 TOTAL: 30,885,811.00 28,373,164.54 (2,512,646.46) Fund Names 101 General Fund 325 Police Facility Construction Fund 102 General Fund-Emergency 401 Debt Service/General Obligation 103 General Fund-Contingency 501 Water&Sewer Fund 201 Hotel-Motel Tax Fund 502 Water&Sewer-CIP 210 1/2 Cent Sales Tax-Operations Fund 505 Water Impact Fees Fund 211 1/2 Cent Sales Tax-Debt reserve 507 Water&Sewer-Emergency Fund 220 Crime Control&Prevention District 508 Wastewater Impact Fees Fund 230 Police Drug-DEA Awards 510 Drainage Utility 231 Police Drug-State Awards 511 Drainage-CIP 232 Ft. Worth DEA Task Force 521 Arbor Daze Fund 234 LLEBG-97 530 Softball World Operations 235 LLEBG 98 540 Golf Course Operations 301 Developer's Escrow Fund 552 Athletic Complex Phase II-CIP 305 Streets&Drainage-CIP 601 Equipment Replacement Fund 310 1/2 Cent Sales Tax-CIP 610 Health Insurance Fund 320 General Capital Projects Fund 615 Risk Management Fund 6 II. PERFORMANCE SUMMARY Cash and Investments Balances-Full utilization of funds and minimization of idle cash is necessary to pursue additional interest income revenues for the City. The average percent of invested funds is 101% for FY99. The monthly data below shows the continued utilization of City funds through investments. Consolidated Invested Percentage Cash Balance Invested Oct-97 ($512,323) $23,922,128 103% Nov-97 30,229 23,886,630 100% Dec-97 161,633 24,363,880 100% Jan-98 212,014 25,805,449 100% Feb-98 (227,253) 24,867,350 101% Mar-98 102,249 28,905,620 100% Apr-98 (432,948) 27,975,405 102% May-98 (646,711) 29,494,190 103% Jun-98 74,790 29,680,992 100% Jul-98 (562,434) 29,467,177 102% Aug-98 (165,873) 29,074,194 101% Sep-98 58,481 27,724,065 100% Average (159,012) 27,097,257 101% Consolidated Invested Percentage Cash Balance Invested Oct-98 ($465,000) $27,602,728 102% Nov-98 487,174 27,244,663 100% Dec-98 (227,344) 30,096,550 101% Jan-99 59,921 31,198,680 100% Feb-99 (53,154) 30,997,260 100% Mar-99 (585,701) 30,096,806 102% Apr-99 141,555 29,177,901 100% May-99 (396,348) 31,041,488 101% Jun-99 (220,209) 30,907,321 101% Jul-99 (292,533) 30,502,975 101% Aug-99 (168,554) 29,350,836 101% Sep-99 (1,205,074) * 28,395,407 105% Average (243,772) 29,717,718 101% Due to the normal processing of accounts payable, checks were produced and posted to the general ledger on Thursday, September 30, 1999. Our normal operating procedure is to ditribute and mail checks on Friday. Therefore funds were made available at the bank on Friday, October 1, 1999. This graph shows how a greater portion of the City's funds continue to be invested, always in pursuit of 100%. 105.00% �j 100.00% N 95.00% c c� d 90.00% 85.00% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Fiscal Year 7 Cash management performance - effectiveness of the cash management program has been measured utilizing actual figures for FY99 as shown below: m Average City's Number Estimated 90 day Invested Days in Interest Month TBill Yield Balance Month Earnings Oct-98 4.03% $27,602,728 31 $94,477 Nov-98 4.52% $27,244,663 30 $101,216 Dec-98 4.52% $30,096,550 31 $115,538 Jan-99 4.43% $31,198,680 31 $117,384 Feb-99 4.54% $30,997,260 28 $107,955 Mar-99 4.55% $30,096,806 31 $116,306 Apr-99 4.38% $29,177,901 30 $105,040 May-99 4.60% $31,041,488 31 $121,274 Jun-99 4.68% $30,907,321 30 $118,887 Jul-99 4.66% $30,502,975 31 $120,725 Aug-99 4.86% $29,350,836 31 $121,151 Sep-99 4.80% $28,395,407 30 $112,026 Average 4.55% 29,717,718 $112,665 Estimated earnings at benchmark yields: $1,351,979 Actual FY99 interest income (pre-audit): $1,458,803 Earnings over benchmark: $106,824 Key rate comparisons - an objective of the investment policy is for the City's average rate of return to consistently exceed that of the three month U.S. Treasury Bill, as stated before. Therefore, they have been presented for comparative purposes below. Benchmark 90 day City's Avg. Month T-bill yield Portfolio Yld Difference Oct-98 4.03% 5.36% 1.33% Nov-98 4.52% 5.26% 0.74% Dec-98 4.52% 5,21% 0.69% Jan-99 4.43% 5.15% 0.72% Feb-99 4.54% 5.07% 0.53% Mar-99 4.55% 5.04% 0.49% Apr-99 4.38% 5.05% 0.67% May-99 4.60% 4.99% 0.39% Jun-99 4.68% 5.05% 0.37% Jul-99 4.66% 5.06% 0.40% Aug-99 4.86% 5.17% 0.31% Sep-99 4.80% 5.23% 0.43% Average 4.55% 5.14% 0.59% The economy grew at a fairly strong pace and inflation remained very low for most of the fiscal year. However, during the last quarter of fiscal year 1998, the Fed made several interest rate cuts. These rate cuts had no impact on our portfolio during fiscal year 1998, but drastically impacted the average yield on our portfolio during fiscal year 1999. In FY98, the average yield was 5.65%. In FY99, the average yield dropped to 5.14%. 8 III. INTEREST INCOME SUMMARY FY95 Audit $1,578,209 FY96 Audit $1,999,689 FY97 Audit $1,663,462 FY98 Audit $1,510,862 FY99(Pre-Audit) $1,458,803 FY99 Projected $1,180,007 Interest Income Received versus Projected 124% Interest Income Summary $2,500,000 c $2,000,000 m E $1,500,000 zo w $1,000,000 a a $500,000 $0 FY95 Audit FY96 Audit FY97 Audit FY98 Audit FY99(Pre-Audit) FY99 Projected Interest income met and exceeded the budgeted level for fiscal year 1999. When compared to prior year, interest earnings have decreased. This decrease can be attributed to several interest rate cuts by the Federal Reserve at the beginning of FY99. Market rate Outlook -The Fed raised interest rates by 25 basis points at the November 16th meeting of the Federal Open Markets Committee. This was the third rate increase since June. At that meeting, the Fed announced that they would be taking a neutral stance to further rate changes. This suggest that the increase on the 16th may be the last for sometime. The Fed believes that the latest change to interest rates will help diminish the risk of inflation. The latest economic data still suggest a very strong economy with low inflation. Wage inflation remains low which should help to keep interst rates steady, at least for the remainder of the year. An increase by the Fed in December is very unlikely. The Fed does not want to add anymore anxiety to the market in the midst of the Y2K concerns. 'Source: GFOA "Public Investor," November2, 1999 First Southwest Company, Weekly Market Updates 9 Interest Income By Fund For Fiscal Year Ending 1999 # Fund FY 98 FY 98 FY 99 FY99 FY 99 Actual Diff FY99 Budget Audit Budget Projected Pre-Audit Pro i.-Act. 101 General $390,000 $399,560 $375,000 $330,000 $364,346 $34,346 201 Hotel/Motel 5,000 4,311 3,300 4,000 6,805 $2,805 210 Half Cent Sales Tax-Operations 65,000 99,149 65,000 60,000 73,303 $13,303 220 Crime Control Prevention District 5,000 28,275 15,000 15,000 23,021 $8,021 230 Euless DEA Fund 12,000 15,526 0 10,000 17,196 $7,196 231 Police State Awards 0 0 0 1,000 836 $164 232 FW DEA Task Force Euless Portion 90 164 0 573 390 $183 233 LLEBG 96 1,250 1,250 0 0 0 $0 234 LLEBG 97 0 264 0 0 1,389 $1,389 235 LLEBG 98 0 0 0 0 463 $463 301 Developer's Escrow 55,000 82,340 55,000 50,000 76,461 $26,461 305 Streets CIP 65,000 146,264 40,000 150,000 217,310 $67,310 310 Half Cent Sales Tax-CIP 30,000 48,465 25,000 25,000 50,884 $25,884 320 G.O. CIP 11,000 16,411 0 6,000 8,283 $2,283 325 Police Facility CIP 5,000 17,229 5,000 27,000 37,150 $10,150 401 GO Debt Service 14,500 14,164 14,500 10,500 13,062 $2,562 501 Water and Sewer 345,000 361,417 340,000 290,000 294,358 $4,358 502 Water and Sewer CIP 50,000 58,234 25,000 42,000 51,468 $9,468 503 Water and Sewer Reserve 28,000 30,014 20,000 20,000 21,633 $1,633 505 Water Impact Fees 70,000 92,114 35,000 40,000 65,445 $25,445 508 Wastewater Impact Fees 0 0 35,000 40,000 27,854 $12,146 510 Drainage 18,000 18,971 10,000 14,000 23,109 $9,109 511 Drainage Capital Projects 15,000 15,952 12,000 7,000 10,766 $3,766 521 Arbor Daze 0 0 0 1,400 3,163 $1,763 530 Softball World 8,000 9,701 5,000 5,000 11,157 $6,157 540 Golf Course 6,000 6,289 3,000 2,334 1,427 $907 552 Athletic Complex Phase II-CIP 0 0 0 0 3,505 $3,505 601 Equipment Re lacement 10,000 17,501 8,000 8,000 19,396 $11,396 610 Health Insurance 0 1,320 0 6,200 9,460 $3,260 615 Risk MGMT/Worker's Com 27,000 38,555 25,000 15,000 25,163 $10,163 Total 1 $1,223,840 $1,510,862 $1,115,800 $1,180,007 $1,458,803 $278,796 124% of Budget Note that interest earnings is being earned on all investable City funds and great efforts are pursued to meet their budgeted levels. This report points out that the pre-audit interest earnings for the end of the fiscal year exceeds the budgeted level by 24%. Several Funds were budgeted conservatively or not at all due to the volatility of their revenues and expenditures. However, these funds are used for investment purposes when they have funds available. These funds include Capital Improvement Projects, Dea Funds, and Grant Funds. A large portion of the difference can be attributed to the Streets Capital Projects fund and other Capital Improvement Funds due to the delay of anticipated projects. 10 IV. COLLATERAL REVIEW The first and most important objective of investing public funds is safety. One way to insure the City's assets is to have them fully secured with"collateral". Acceptable collateral is defined in the City's investment policy, but generally consists of types of securities the City would invest in. Bank balances are monitored daily to assure their full coverage. The amount of collateral required by the depository bank varies with the expected level of deposits(typically correlates with large receipts such as property taxes, franchise taxes and investment maturities. Cityof�EII�SS' Collateral Analysis for CasEt 8�C.3.I.—Fivesiments W 9=199 Pledging Safekeeping Pledged Sec. Security Market Value Inv. Value Difference Institution Location Description Par Value (w/FDIC Ins.) Mat'y(P & 1) Over/(Under) Bank One FDIC FDIC $0 $100,000 $24,073 $75,927 $ Mkt $0 DDA $24,073 Landmark Bank Texas Indep $1,500,000 $1,537,345 $201,827 $1,335,518 Bank-Dallas FHLB due Payroll $47,722 08/24/05 $500,000 Operating $154,105 FNMA due 04/24/06 $1,000,000 Y Reproduced By: P 'I C/ Budget and Treasury Manager I Date: Reviewed by: Q Director of Finance Date: This review is practiced on a regular basis assuring coverage. Another regular practice is reviewing each individual instrument purchased. This assures compliance with the investment policy and consideration of the underlying security. This separate but thorough practice has protected the City's portfolio against derivative products. 11 V. BROKER SELECTION PROCESS This section of the report is to provide a brief explanation of the process undertaken to select brokers with which the City invests. The broker/dealer list is reviewed annually (usually in combination with the first quarter report) and any changes are made at this time. The process is outlined below: 1. Brokers express an interest in doing business with the City's investment portfolio 2. A questionnaire is sent to the broker which requests the necessary information for Cash management to review including references, capital adequacy ratios, etc. 3. The Cash and Debt Department reviews all received questionnaires, summarizes the information and recommends the desired list of brokers with explanatory notes. 4. The recommendation is presented to the Investment Committee at the next quarterly meeting for discussion and final approval. 5. All brokers are notified after the selection is complete. VI. SUMMARY The primary objective of compliance, safety, liquidity and yield have been achieved for the reporting period as evidenced by this report. These objectives will continue to be pursued for the City of Euless as provided by the investment policy. This year proved to be another successful year for the investment program. The City of Euless, like all other local governments, is faced with the challenge of meeting benchmark levels triggered by the Fed's actions and meeting additional reporting requirements as stated by new legislation. Therefore, the City's investment program will continue to seek new techniques, instruments, etc. to enhance the return on the City's funds, as well as the return of all City funds. In Fiscal Year 1999, not only did we keep the City's funds fully invested, we also completed the following: -Implemented new bank depository agreement with Landmark Bank -Reviewed the investment policy to comply with the Public Funds Investment Act as revised in 1999. These changes are being presented to the City Council in conjunction with this report. -Assisted the Accounting Department with the conversion and implementation of new financial software. The investment committee met on December 8, 1999 and reviewed the presented data for transmittal to the City Council. Vicki Rodriquez Loretta Getchell Budget and Treasury Manager Director of Finance 12 Detail Questionnaire Evaluation Current BrokerlDealers The City maintains a list of four brokers. Currently it includes Merrill Lynch,Banc One capital,Everen Securities,and First Southwest. These brokers have been serving the city for several years and continue to provide excellent service and competitiveness. In the later part of 1999,Everen Securities was acquired by First Union Bank. Our current representatives from Everen left to join Corporate Securities Group,Inc. Since their departure,no one from First Union has contacted me or shown an interest in our account. In the last year we added two additional brokers,Vining Sparks and Chase Securities,on a probationary basis. Greg Thompson with Vining Sparks has provided excellent service,competitive prices,market updates,and numerous offerings. He faxes me and e-mails me information on a daily basis. Scott Obenshain with Chase Securities has been very responsive to my requests for bids. His offerings are usually very competitive. However,he has not offered any additional information unless I request it. At this time,I would like for the committee to consider the addition of Corporate Securities Group. I would also like to remove Everen(First Union Bank). I propose that we continue to monitor Vining Sparks and Chase Securities for at least another quarter. Additions to Consider Corporate Securities Group-Michael Swan and Howard Herring 1 Delivery vs.Payment (DVP)-Yes 2 Texas Registration-Yes 3 Corporate Securities Group,Inc and its parent company,JW Genesis Financial Corp.are considered secondary dealers. They have been providing securities brokerage and investment banking services for 27 years 4. Capitalization-Comply with SEC guidelines 5. Law Suits-No 6. Satisfactory Service Capability-All references contacted(City of Austin,City of Corpus Christi,City of Arlington,City of Garland,City of Fort Worth,City of Plano)have been very impressed with the knowledge, expertise,and service provided by Mr.Swan and Mr.Herring. Mr.Herring has 30 years of experience in U.S. Government securities,and Mr.Swan has over 17 years experience. They have been on our broker/dealer list since 1990. They continue to provide excellent service,and competitive pricing. 7 Training is available and provided by staff on an as needed basis. Mr.Swan and Mr.Herring are involved in several organizations including the Government Treasurers'Organization of Texas,the Government Finance Officers Association of the U.S.&Canada,and the Municipal Treasurers'Association of the U.S.& Canada. They have conducted many educational seminars for GTOT,GFOAT,and MTA. They serve on several committees for GTOT and MITA,including the investment policy review committee,and the education committee. They have also been involved with the University of North Texas Center for Public Management investment training for compliance with the Public Funds Investment Act. 13 Minutes -8/12199 Investment Committee Meeting Members: Gary McKamie, Deputy City Manager Loretta Getchell, Director of Finance Vicki Rodriquez, Budget and Treasury Manager Janina Jewell, Accounting Manager Committee members present included, Gary McKamie, Loretta Getchell, Vicki Rodriquez and Janina Jewell. Vicki Rodriquez presented the third quarter investment report to the committee. The committee reviewed the report. During the review, Vicki pointed out that several funds were earning interest, but no interest had been budgeted due to the volatility of the funds revenues and expenditures. Vicki Rodriquez presented Chase Securities of Texas as a possible addition to the City's broker/dealer list for consideration by the committee. Chase had expressed interest in the City of Euless in June. A broker/dealer questionaire was given to Chase at the beginning of July. Chase responded to the questionaire, and the information was received the day before the committee meeting. Vicki reported that she was concerned with the response time. However, Chase is a primary dealer associated with Chase Bank. They have excellent resources; the broker is very knowledgable; and they received excellent referals. Janina Jewell also raised her concerns about how they would respond in the future. Vicki suggested that they be added on a probationary basis. Gary McKamie motioned to add Chase Securities of Texas with probationary status. Loretta Getchell seconded the motion. Loretta Getchell motioned to approve the report as presented, Janina Jewell seconded. Loretta Getchell motioned to adjourned the committee meeting. Vicki Rodriquez seconded. Meeting was adjourned. ii • APPENDIX • • II City of Eul ® , Investment Porti- As of June 30,1999 Investment Type Institution LOGIC Local Govt Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanaciai Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mon Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local GoVt Investment Cooperative SLMA Student Loan Mon.Assoc. TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Inv Cusip Purchase Term Maturity Days Price Par Principal Interest Interest Yield To Book Market Market Seller Unamorlized Coupon Type Number Date in days Dale Accrued Per 100 Value Invested cM mat' Accrued Maturity Value Price Value Inst. Discount Premium Prem/Disc Rae U.S.GOVERNMENT AGENCIES Agency Discount Nobs FHLB 313384JT7 02/04/99 175 07/29/99 146 97.7736 1,000,000.00 977,736.11 22,283.89 18,574.44 4.75% 996,310.56 99.5972 995,972.00 Banc One FHLB 313384JZ3 02/04/99 181 08104/99 146 97.6872 1,000,000.00 976,872.22 23,127.78 18,855.56 4.77% 995,527.78 99.5090 995,090.00 Everen FMAC 313396LB7 02/05/99 206 08/30/99 145 97.3449 515,000.00 501,326.18 13,673.82 9,624.78 4.82% 510,950.96 99.1392 510,566.88 Everen FMAC 313396LE1 06/02/99 92 09/02/99 28 96.7529 1,000,000.00 987,528.89 12,471.11 3,795.56 5.01% 991,324.44 99.0969 990,969.00 Vining FNMA 313588117 06/02/99 98 09/06/99 28 98.6824 500,000.00 493,412.22 6,587.78 1,882.22 4.97% 495,294.44 99.0122 495,061.10 Merrill FHLB 313384MC0 02/084/ 228 09/24/99 142 97.0867 1,000,000.00 970,886.67 29,133.33 18,144.44 4.789A 989,011.11 98.7864 987,864.00 Banc One FNMA 31358BNF8 05/04/99 170 10/21/99 57 97.78W 500,000.00 488,902.78 11,097.22 3,720.83 4.87% 492,623.61 98.3929 491,964.50 Everen FNMA 313588NS0 05/04/99 181 11101/99 57 97.6319 500,000.00 488,159.58 11,840.42 3,728.75 4.89°/6 491,888.33 98.2364 491,182.00 Banc One FMAC 313396NT6 05/04/99 182 11/02/99 57 97.6188 500,000.00 488,094.17 11,905.83 3,728.75 4.89% 491,822.92 98.2222 491,111.00 Everen FNMA 3135-9NZ4 02/05/99 276 11/08/99 145 96.4733 520,000.00 501,661.33 18,338.67 9,634.44 4.80% 511,295.78 98.1369 510,311.88 Memill FNMA 3135BBQPB 06/02/99 184 12/03/99 28 97.5109 500,000.00 487,554.44 12,445.56 1,893.89 5.06% 489,448.33 97.7683 488.841.50 Merrill FNMA 313588OAS 06/02/99 184 12/0.3/99 28 97.5109 500,000.00 487,554.44 12,445.56 1,893.89 5.06% 489,448.33 97.7683 488,841.50 Banc One FHLB 313384SJ9 02/04/99 358 01/28/00 146 95.4256 500,000.00 477,127.78 22,872.22 9,327.78 4.83% 486,455.56 96.9083 484,541.50 Everen FNMA 313588SN6 05/20/99 257 02/01/00 41 96.5448 500,000.00 482,723.89 17,276.11 2,756.11 5.05% 485,480.00 96.8500 484,250.00 Merrill FNMA 313384VVD7 05/04/99 360 04/28/00 57 95.2400 500,000.00 476,200.00 23,800.00 3,768.33 5.02% 479,968.33 95.5600 477,SIX 00 Merrill TOTAL: 9,535,000.00 9,285,720.71 249,279.29 111,129.78 491% 9,396,850.48 9,384,366.86 Agency Coupon Nobs FHLB 3133882F6 06/04/99 180 08/31/99 26 100.6094 400,000.00 402,437.50 15,732.00 2,272.40 5.18% 401,218.75 100.3660 401,464.00 Vining 2,437.50 1,218.75 7.8660°/6 FHLB 3133WD21 06/03/99 360 10/29/99 241 99.9375 1,000,000.00 999,375.00 50,300.00 33,673.06 5.16% 999,531.25 99.8438 998,437.50 Vining 625.00 (468.75) 5.0300°/6 FNMA 31364GJE0 02/11/99 180 11/30/99 30 99.9141 300,000.00 299,742.19 7,170.00 1,195.00 4.88% 299,885.44 99.7813 299,343.75 FSW 257.81 (114.56) 4.7800°/6 FNMA 31364FML2 01/12/98 180 01/12/00 168 99.9060 1,000,000.00 999,060.00 28,000.00 25,133.33 5.65% 999,765.04 100.0625 1,000,625.00 Memll 940.00 (234.96) 5.60000/6 FHLB 3133WH74 04/22/99 180 02/04/00 146 99.8337 1,000,000.00 998,337.00 23,950.00 19,426.11 5.00% 998,835.90 99.6250 996,250.00 Everen 1,863.00 (1,164.10) 4.7900% SLMA 86W7RW24 02/11/99 360 02/11/00 139 100.0000 1,000,000.00 1,000,000.00 50,500.170 19,496.81 5.05% 1,000,000.00 99.6875 996,875.00 Everen 5.17500% FHLB 3133M75B8 01/26/99 244 03/30/00 154 100.0000 500,000.00 500,000.00 16,944.44 10,694.44 S.OD°/6 500,000.00 99.8750 499,375.00 FSW 5.0000% FNMA 31364GH77 05/04/99 180 04/20100 56 99.9140 500,000.00 499,570.00 12,450.00 3,873.33 5.07% 499,648.18 99.5625 497,812.50 FSW 430.00 (351.82) 4.98009/6 FHLB 3133MBN42 05/25/99 180 04/28/00 62 99.9111 1,000,000.00 999,111.00 25,375.00 8,740.28 5.17% 999,272.64 99.5625 995,625.00 Vining 889.00 (727.36) 5.0750% FNMA 31364GP78 05/12199 180 05/12/00 48 100.0000 1,000,000.00 1,000,000.00 25,600.00 6,826.67 5.12% 1,000,000.00 99.5438 995,437.50 Banc One 5.12009/6 FHLB 3133MSSF2 05/17/99 180 05/17/00 43 100.0000 500,000.00 500,000.00 12,750.00 3,045.83 5.10% 500,000.00 99.5938 497,968.75 FSW 5.1000°/6 FHLB 3133M74B9 01/15/99 539 07/14/00 165 100.0000 1,000,000.00 1,000,000.00 77,855.56 23,833.33 5.20% 1,000,000.00 99.3125 993,125.00 Everen 5.2000°/6 FHLB 3133M74TO 01/21/99 180 07/21/00 159 100.17000 500,000.00 500,000.00 12,500.00 11,041.67 5.00% 500,000.00 99.2813 496,406.25 Everen 5.0000% FHLB 3133M7GY6 02/18/99 180 06/18/00 132 100.0000 1,000,000.00 1,000,000.00 25,000.00 18,333.33 5.00% 1,000,000.00 99.2500 992,500.00 FSW 5.0000% FHLB 3133MBP24 05/17/99 180 11/17/00 43 100.0000 500,000.00 500,000.00 13,000.00 3,105.56 5.20°/6 500,000.00 99.1875 495,937.50 Everen 5.2000% FHLB 3133MBVE1 06/07/99 180 12/07/00 23 100.0000 500,000.00 500,000.00 13,412.50 1,713.82 5.37% 500,000.00 99.3875 496,937.50 Everen 5.3650°/6 FHLB 3133MBBF4 11/04/98 180 05/04/01 56 100,0000 1,000,000.00 1,000,000.00 25,600.00 7,964.44 5.12°/6 1,000,000.00 98.2500 982,500.00 Everen 5.12001/6 FMAC 3134A3TE6 06/07/99 180 06/07/02 23 100.0000 500,000.00 500,000.00 15,000.00 1,916.67 6.00% 500,000.00 99.0625 495,312.50 Everen 6.0000% TOTAL: 13,200,000.00 13,197,632.69 451,139.50 203,287.89 5.18°/6 13,198,157,20 13,131,932.75 4,804.81 2,437.50 (1,842.80) U.S.TREASURY NOTES TNOTE 912827304 07/31/98 180 01/31/00 150 99.8594 500,000.00 499,296.88 13,437.50 11,197.92 5.47% 499,765.64 100.1875 500,937.50 Everen 703.12 (234.36) 5.3750°/6 CERTIFICATES OF DEPOSITS CD 04/23/99 365 04/23/00 67 100.0000 5,000.00 5,000.00 250.00 45.89 5.00% 5,000.00 100.0000 5,000.00 Lndmrk 5.0001% INVESTMENT POOLS LOGIC WA WA WA WA WA 100.0000 6,569,012.29 6,569,012.29 WA WA 4.78% 6,569,01229 1000000 6,769,012.29 LOGIC FGIC N/A WA WA WA WA 100.0000 1,294,561.60 1,294,561.60 WA WA 4.79°/6 1.294,56160 1000000 1,294,561.60 FGIC TOTAL: 7,863,573.89 7,863,573.89 479% 7,863,57389 7,863,573.89 TOTAL PORTFOLIO 31,103,573.89 30.851,22416 714.106.29 325,661.47 30,963.34721 30,885,811.00 5,507.93 2,437.50 (2,077.16) F� City of Euless Investment Portfolio As of September 30,1999 Invsstmsnt Type Institution LOGIC Local Galt Pool FNMA Fed Nat'l Mort.Assoc FHLB Fed.Home Loan Bank FGIC Finanactal Investors Trst FSW First Southwest LNDWK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Govt Investment Cooperative SLMA Student Loan Mort.Assoc. TNOTE Treasury Nota CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Inv. Cusip Purchase Tenn Maturity Days Price Par Principal Interest Interest Yield To Book Market Market Seller Unamontzed Coupon Type Number Date in days) Date Accrued Per 1 Value Invested n mat' Accrued Maturity Value Price Value Inst. Discount Premium PreMDisc Rate U.S.GOVERNMENT AGENCIES Agency Discount Nobs FNMA 3135BBNFB 05/04/99 170 10/21/99 149 97.7806 500,000.00 488,902.78 11,097.22 9,726.39 4.87% 498,629.17 99.6978 496.489.17 Everen FNMA 313588NS0 05/04/99 181 11/01/99 149 97.6319 500,000.00 488,159.58 11,840.42 9,747.08 4.89% 497,906.67 99.5351 497,675.56 Banc One FMAC 313395NT6 05/04/99 182 11/02/99 149 97.6188 500,000.00 488,094.17 11,905.83 9,747.08 4.89% 497,841.25 99.5206 497,602.92 Everen FNMA 3135BBNZ4 02/05/99 276 11/08/99 237 96.4733 520,000.00 501,661.33 18,338.67 15,747.33 4.809A 517,408.67 99.6334 518,093.77 Memll FNMA 313588OA6 08/02/99 184 12/03199 120 97.5109 500,000.00 487,554.44 12,445.56 8,116.67 5.06% 495,671.11 99.0667 495,333.34 Merrill FNMA 313588OA6 06/02/99 184 12/03199 120 97.5109 500,OD0.00 487,554.44 12,445.56 8,116.67 5.06% 495,671.11 99.0667 495,333.34 Banc One FHLB 313384SJ9 02/04/99 358 01128/00 238 95.4256 500,000.00 477,127.78 22,872.22 15,205.56 4.83% 492,333.33 98.1600 490,800.00 Everen FNMA 313588SN6 05/20/99 257 02/01/00 133 96.5448 500,000.00 482,723.89 17,276.11 8,940.56 5.05% 491,664.44 98.0967 490,493.33 Merrill FMAC 313396UY7 08/11/99 233 03/30/00 50 96.5007 570,000.00 550,053.80 19,946.20 4,280.30 5.691.6 554,334.10 97.2093 554,093.20 Everen FNMA 313384WD7 05/04/99 360 04/28/00 149 95.2400 500,000.00 476,200.00 23,801).00 9,850.56 5.02% 486,050.56 96.7647 483,823.33 Merrill FNMA 313588ZR9 08/02/99 354 07/21/00 59 94.7588 500,000.00 473,794.17 26,205.83 4,367.64 564% 478,161.81 95.4931 477,465.30 Merrill TOTAL: 5,590,000.00 5,401,826.38 188,173.62 103,845.83 5.07% 5,505,672.21 5,499,203.24 Agency Coupon Nobs FHLB 31&V&021 06/03/99 360 10/29/99 331 99.9375 1,000,000.00 999,375.00 50,300.00 46,248.06 5.16% 1,000,000.00 99.9375 999,375.00 Vining 625.00 000 5.03001% FNMA 31364GJE0 02/11/99 180 11/30199 120 99.9141 300,000.00 299,742.19 7,170.00 4,780.00 4.89% 299,971.36 99.8750 299,625.00 FSW 257.81 (28.64) 4.7800% FNMA 31364FML2 01112/98 180 01/12/00 78 99.9060 1,000,000.00 999,060.00 28,000.00 12,133.33 5.659/6 999,882.52 100.0000 1,000,000.00 Merrill 940.00 (117.48) 5.60009% FHLB 3133M71-174 04/72/99 180 02104/00 56 99.8337 1,000,000.00 998,337.00 23,950.00 7,451.11 5.00% 999,334.80 99.7188 997,187.50 Everen 1,663.00 (665.20) 4.7900°% SLMA 86387RW24 02/11/99 360 02/11/00 229 100.0000 1,000,000.00 1,000,000.00 50,500.00 32,123.61 5.05% 1,000,000.00 99.7500 997,500.00 Everen 5.0500% FHLB 3133M7588 01/26199 180 03/30/00 0 100.0000 500,000.00 500,000.00 12,500.00 0.00 500% 500,000.00 99.0625 495,312.50 FSW 5.0000% FNMA 31364GH77 05/04/99 180 04/20100 146 99.9140 500,000.00 499,570.00 12,450.OD 10,098.33 5.07% 499,765.45 99.6250 498,125.00 FSW 430.00 (234.55) 4.9800% FHLB 3133WN42 05/25/99 180 04/28/00 152 99.9111 1,000,ODO.00 999,111.00 25,375.00 21,427.78 5.17% 999,515.10 99.6250 996,250.00 Vining 889.00 (48490) 5.07500% FNMA 31364GP78 05112/99 180 05/12/00 13B 100.0000 1,000,000.00 1,000,000.00 25,600.00 19,626.67 5.12% 1,000,000.00 99.6875 996,875.00 Banc One 5.1200% FHLB 3133MBSF2 05/17/99 180 05/17/00 133 100.0000 500,000.00 500,000.00 12,750.00 9,420.83 5.10°% 500,000.00 99.5938 497,968.75 FSW 5.10009/6 FHLB 3133M74B9 01/15/99 539 07/14/00 255 100.0000 1,000,000.00 1,000,000.00 77,855.56 36,833.33 5.20°% 1,000,000.00 99.3438 993,437.50 Everen 5.2000% FHLB 3133M74T0 01/21/99 180 07/21/00 69 100.0000 500,000.00 500,000.00 12,500.00 4,791.67 5.00% 500,000.00 99.3438 496,718.75 Everen 5.0000°% FHLB 3133M7GY6 02/18/99 180 08/18/00 42 100.0000 1,000,000.00 1,000,000.00 25,000.00 5,833.33 5.0()°% 1,000,000.00 99.2500 992,500.00 FSW 5OODO% FNMA 31364FOE8 09114/99 180 10/12/00 168 100.0000 200,000.00 200,000.00 6,030.00 5,628.00 5.88% 200,000.00 100.0000 200,000.00 Banc One 6.030% FNMA 31364FDE8 09/28/99 180 10/12/00 168 100.0000 200,000.00 200,000.00 6,030.00 5,628.00 5.88% 200,000.00 100.0000 200,000.00 Banc One 6.030% FHLB 3133MBP24 05/17/99 180 11/17/00 133 100.0000 500,000.00 500,000.00 13,000.00 9,605.56 5.20% 500,000.00 99.2188 496,093.75 Everen 5.2000% FHLB 3133MBTE4 08103/99 180 12/01/00 119 99.2813 330,000.00 327,628.13 8,679.00 5,737.78 5.829% 325,552.74 99.2500 327,525.00 Banc One 2,37187 (2.075.39) 5.2600% FHLB 3133MBW1 06/07/99 180 12/07/00 113 100.0000 500,000.00 500,000.00 13,412.50 8,420.07 5.37% 500,000.00 99.3750 496,875.00 Everen 5.3650°% FHLB 313N19KU5 08/16/99 180 02/16/00 44 100.0000 500,000.00 500,000.00 15,075.00 3,685.00 6.03% 500,000.00 99.9375 499,687.50 Everen 6.0300°% FHLB 3133MBBF4 11/04/98 180 05104/01 146 100.0000 1,000,000.00 1,000,000.00 25,600.00 20,764.44 5.12% 1,000,000.00 98.6875 986,875.00 Everen 5.12001% FMAC 3134A3TE6 06/07/99 180 06107/02 113 100.0000 500,000.00 500,000.00 15,000.00 9,416.67 6.00% 500,000.00 99.1250 495,625.00 Everen 6.00000% TOTAL: 14,030,000.00 14,022,823.31 466,777.06 279,653.58 5.32% 14,024,021.97 13,963,556.25 7,176.68 0.00 (3,606.16) U.S.TREASURY NOTES TNOTE 912827304 07/31/96 180 01/31/00 60 99.8594 500,000.00 499,296.88 13,437.50 4,479.17 5.47% 499,882.82 100.0938 500,468.75 Everen 703.12 (11718) 5.37509% CERTIFICATES OF DEPOSITS CD 04/23/99 365 04/23/00 160 100.0000 5,000.00 5,000.00 250.00 109.59 5.00% 5,000.00 100.0000 5,000.00 Lndmrk 5.000°% INVESTMENT POOLS LOGIC WA WA WA WA WA 100.0000 6,588,948.69 6,588,948.69 WA WA 5.21% 6,588,948.69 100.0000 6,588,948.69 LOGIC FGIC WA WA WA WA WA 100.0000 1,815,987.61 1,815,967.61 WA WA 5.19% 1,815,987.61 100.0000 1,815,987.61 FGIC TOTAL: 8,404,936.30 8,404,936.30 5.20% 8,404,936.30 8,404,936.30 TOTAL PORTFOLIO 28,529,936.30 28,333,882.87 668,638.17 388,088.16 28,439,513.29 28,373,164.54 7,879.80 0.00 (3,723 34) N t Cityos Investment by Fund As of June 30,1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Memll Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv. Cusip Purchase Term Maturity Price Par Book Value Interest Total Pnn + Yield To Coupon Interest Seller Market %of Type Number Date in da s) Date Per 100 Value (Pnn.Only) ft mat'y Int CM Mat'y Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 1 LOGIC N/A 100.0000 106,920.38 106,920.38 106,920.38 4.78% LOGIC 1 106,920 38 0.35% 0.00 FGIC N/A 100.0000 0.00 0.00 000 4.79% LOGIC 1 000 0.00% 0.00 FHLB 313384JT7 02/04/99 175 07/29/99 97.7736 1,000,000.00 977,736.11 22,263.89 1,000,000.00 4.75% Banc One 1 995,97200 3.16% 5.54 FHLB 313384MC0 02108/99 228 09/24/99 97 0867 500,000.00 485,433 33 14,566.67 500,000.00 4.78% Banc One 1 493,932 00 1.57% 3.58 FMAC 313396NT6 05/04/99 182 11/02/99 97.6188 500,000.00 488,094.17 11,905.83 500,000.00 4.89% Everen 1 491,11100 1.58% 2.87 FNMA 313588NZ4 02/05/99 276 11/08/99 96.4733 520,000.00 501,661.33 18,338.67 520,000.00 4.80% Merrill 1 510,31188 1.62% 4.48 FNMA 313588OA6 06/02/99 184 12/03/99 97.5109 250,000.00 243,777.22 6,222.78 250,000.00 5,06% Banc One 1 244,420.75 0,79% 1.45 TNOTE 912827304 07/31/98 540 01/31/00 99.8594 500,000.00 499,296.88 40,312.50 540,312.50 5.47% 5.375% 0.00 Everen 703.12 1 500,937.50 1.62% 8.72 FNMA 313588SN6 05/20/99 257 02/01/00 965448 500,000.00 482,723.89 17,276.11 500,000.00 5.05% Memll 1 484,250.00 1.56% 4.01 FHLB 3133M7H74 04122/99 282 02/04/00 99.8337 1,000,000.00 998,337.00 47,900.00 1,047,900.00 5.00% 4790% 10,378.33 FGIC 1,663.00 1 996,250.00 3.26% 9.20 FNMA 31364GP78 05/12/99 360 05/12/00 100.0000 500,000.00 500,000.00 25,600.00 525,600.00 5.12% 5.120% 000 Banc One 000 1 497,718 75 1.62% 5.82 FHLB 3133M74T0 01/21/99 540 07121/00 100.0000 500,000.00 500,000.00 37,500 00 537,500.00 5.00% 5 000% Everen 1 496.406 25 162% 8.74 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 200,000.00 200,000.00 15,000.00 215,000.00 500% 5 000% FSW 1 198,500 00 065% 3.49 FHLB 3133MBP24 05/17/99 540 11/17/00 100.0000 500,000.00 500,000.00 39,000.00 539,000.00 5.20% 5200% 000 FSW 0.00 1 495,93750 1.62% 8.74 FHLB 3133M8VE1 06/07/99 540 12107/00 100.0000 500,000.00 500,000.00 40,237.50 540,237.50 537% 5365% Everen 1 496,937.50 1.62% 8.74 Subtotal 7,076,920.38 6,983,980.31 336,123.94 7,322,470.38 10,378.33 2.36612 0.00 subtotal 7,009,605 51 22.63% 75.39 Fund 2 LOGIC N/A 100.0000 133.838.12 133,838.12 133,838.12 478% LOGIC 2 133,838.12 043% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% LOGIC 2 0.00 0.00% 0.00 FMAC 313396LB7 02/05/99 206 08/30/99 97.3449 515,000.00 501,326.18 13,673.82 515,000.00 4.82% Everen 2 510,566.88 1,62% 3.34 FHLB 313384MC0 02/08199 228 09/24/99 97.0867 500,000.00 485,433.33 14,566.67 500,000 00 4.78% Banc One 2 493,932.00 1.57% 3.58 FHLB 3133M6D21 06/03/99 146 10129/99 99.9375 1_.000,000.00 999,375.00 50,300.00 1,050,300.00 5.16% 5030% 29,900.56 Vining 625.00 2 998,437.50 3.33% 4.86 FNMA 313588NS0 05/04/99 181 11/01/99 97.6319 500,000.00 488,159.58 11,840.42 500,000.00 4.89% Banc One 2 491,182.00 1.58% 2.86 FNMA 31358BOA6 06/02/99 184 12/03/99 97.5109 250,000.00 243,777.22 6,222.78 250,000.00 5.06% Banc One 2 244,420.75 0.79% 1.45 FHLB 313384SJ9 02/04/99 358 01Y28100 95.4256 500,000.00 477,127.78 22,872.22 500,00000 4.83% Everen 2 484,541.50 1.54% 5.53 FHLB 313M7588 01/26/99 424 03/30/00 1000000 500,000.00 500,000.00 29,444.44 529,444.44 500% 5 000% FSW 2 499,375.00 162% 6.86 FNMA 31364GH77 05/04/99 346 04/20/00 99.9140 500,000.00 499,570.00 24,900.00 524,900.00 5.07% 4980% 968.33 FSW 43000 2 497,812.50 1.62% 5.60 FNMA 31364GP78 05/12/99 360 05/12/00 100.0000 500,000.00 500,000.00 25,600.00 525,600.00 5.12% 5.120% 0.00 Banc One 000 2 497,718 75 1.62% 5.82 FHLB 3133M74B9 01/15/99 539 07/14/00 100.0000 1,000,000.00 1,000,000.00 77,855.56 1,077,855.56 5.20% 5.200% Everen 2 993,125.00 3.24% 17.44 Subtotal 5,898,838.12 5,828,607.21 277,275.90 6,106,938.12 30,868.89 1,055.00 0.00 subtotal 5,844,950.00 18.96% 57.35 Fund 4 LOGIC N/A 100.0000 443,578.96 443,578.96 443,578.96 4.78% LOGIC 4 443,578.96 1.44% 0.00 FGIC N/A 1000000 0.00 0.00 0.00 4.79% FGIC 4 0.00 000% 0.00 Subtotal 443,578.96 443,578.96 0.00 443,578.96 0.00 0.00 0 00 subtotal 443,578.96 144% 000 Fund 6 LOGIC N/A 100.0000 0.00 0.00 0.00 478% LOGIC 6 0.00 000% 0.00 FMAC 3134A3TE6 06/07/99 1080 06/07/02 100.0000 500,000.00 500,000.00 90,000.00 590,000.00 6.00% 6.000% Everen 6 495,312.50 1.62% 17.47 Subtotal 500,000.00 500,000.00 90,000.00 590,000.00 subtotal 495,312.50 1.62% 17.47 Fund 8 LOGIC N/A 100.0000 250,758.51 250,758.51 250,758.51 4.78% LOGIC 8 250,758.51 0.81% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 8 0.00 000% 0.00 FHLB 3133882F6 06/04/99 86 08/31/99 100.6094 400,000.00 402,437.50 15,732.00 415,732.00 5.18% 7.866% 8,215.60 Vining 2,437.50 8 401,464.00 1.33% 1.14 FNMA 31364FML2 01/12/98 720 01/12/00 99.9060 500,000.00 499,060.00 56,000.00 556,000.00 5.65% 5.60% Merrill 940.00 8 500,312.50 1.61% 11.63 Subtotal 1,150,758.51 1,152,256.01 71,732.00 1,222,490.51 8,215.60 940.00 2,437.50 subtotal 1,152,535.01 3.75% 12.77 Fund 9 LOGIC N/A 100.0000 0.00 0.00 0.00 478% LOGIC 9 0.00 0.00% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 9 0.00 0.00% 0.00 FNMA 3135881-1-7 06/02/99 98 09/08/99 98.6824 250,000.00 246,706.11 3,293.89 250,000.00 497% Merrill 9 247,530.55 0.80% 0.78 FNMA 313384WD7 05/04/99 360 04/28/00 95.2400 500,000.00 476,200.00 23,800.00 500,000.00 5.02% Merrill 9 477,800.00 1.54% 5.55 FHLB 3133M8SF2 05/17/99 360 05/17/00 1000000 500,000.00 500,000.00 25,500.00 525,500.00 5.10% 5.100% 0.00 FSW 0.00 9 497,968.75 1.62% 5.82 FHLB 3133M7GY6 02/18/99 540 08118/00 1000000 300,000.00 300,000.00 22,500.00 322,500.00 5 00% 5 000% FSW 9 297,750.00 0.97% 5.24 Subtotal 1,550,00000 1,522 906 11 75,093.89 1,598,000.00 0.00 0.00 0.00 subtotal 1,521,04930 4.93% 17.39 City of Euless Investment by Fund As of June 30,1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv. Cusip Purchase Tenn Maturity Price Par Book Value Interest Total Phn.+ Yield To Coupon Interest Seller Market %of Type Number Date in days Date Per 100 Value (Prin.Only) CO mat'y Int.QI!Mat'y Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 12 LOGIC N/A 100.0000 150,379.25 150,379.25 150,379.25 478% LOGIC 12 150,379.25 0.49% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 12 0.00 0.00% 0.00 subtotal 150,379.25 150,379.25 0.00 150,379.25 subtotal 150,379.25 0.49% 0.00 Fund 14 LOGIC N/A 100.0000 353,212.25 353,212.25 353,212.25 4.78% LOGIC 14 353,212.25 1.14% 0.00 FMAC 313396LE1 06/02/99 92 09/02/99 98.7529 500,000.00 493,764.44 6,235.56 500,000.00 5.01% Vining 14 495,484.50 1.60% 1,47 Subtotal 853,212.25 846,976.70 6,235.56 500,000.00 subtotal 848,696.75 2.74% 1.47 Fund 15 LOGIC N/A 100.0000 303,366.79 303,366.79 303,365.79 4.78% LOGIC 15 303,366.79 0.98% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00% FGIC 15 0.00 0.00% 0.00 subtotal 303,366.79 303,366.79 0.00 303,366.79 subtotal 303,366.79 0.98% 0.00 Fund 16 LOGIC N/A 100.0000 10,037.02 10,037.02 10,037.02 4.78% LOGIC 16 10,037.02 0.03% 0.00 Fund 17 LOGIC N/A 100.0000 150,379.25 150,379.25 150,379.25 4.78% LOGIC 17 150,379.25 0.49% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00% FGIC 17 0.00 0.00% 0.00 FNMA 3135881-1-7 06/02/99 98 09/08199 98.6824 250,000.00 246,706.11 3,293.89 250,000.00 4.97% Merrill 17 247,530.55 0.80% 0.78 FNMA 313588NF8 05/04/99 170 10/21/99 97.7806 250,000.00 244,451.39 5,548.61 250,000.00 4.87% Everen 17 245,982.25 0.79% 1.34 Subtotal 650,379.25 641,536.75 8,842.50 650,379.25 0.00 0.00 0.00 subtotal 643,892.05 2.08% 2.13 Fund 18 FHLB 3133M6BF4 11/04/98 900 05/04/01 100.0000 500,000.00 500,000.00 64,000.00 564,000.00 5.12% 5.120% Everen 18 491,250.00 1.62% 14.56 Fund 19 FHLB 3133M6BF4 11/04/98 900 05/04/01 100.0000 500,000.00 500,000.00 64,000.00 564,000.00 5.12% 5.120% Everen 19 491,250.00 1.62% 14.56 Fund 21 LOGIC N/A 100.0000 250,812.41 250,812.41 250,812.41 4.78% LOGIC 21 250,812.41 0.81% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 21 0.00 0.00% 0.00 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 200,000.00 200,000.00 15,000.00 215,000.00 5.00% 5.000% FSW 21 198,500.00 0.65% 3.49 Subtotal 450,812.41 450,812.41 15,000.00 465,812.41 0.00 0.00 0.00 Subtotal 449,312.41 1.46% 3.49 Fund 22 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 22 0.00 0.00% 0.00 Fund 24 LOGIC N/A 100.0000 90,227.55 90,227.55 90,227.55 4.78% LOGIC 24 90,227.55 0.29% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 24 0.00 0.00% 0.00 FNMA 31364GJE0 02/11/99 292 11/30/99 99.9141 300,000.00 299,742.19 14,340.00 314,340.00 4.88% 4.780% 2,828.17 FSW 257.61 24 299,343.75 0.98% 2.86 Subtotal 390,227.55 389,969.74 14,340.00 404,567.55 2,828.17 257.81 0.00 subtotal 389,571.30 1.27% 2.86 Fund 26 LOGIC NIA 100.0000 20,756.68 20,756.68 20,756.68 4.78% LOGIC 25 20,756.68 0.07% 0.00 Fund 26 LOGIC N/A 100.0000 2,646,944.90 2,646,944.90 0.00 2,646,944.90 4.78% LOGIC 26 2,646,944.90 8.56% 0.00 FHLB 313384JZ3 02/04/99 181 08/04/99 97.6872 1,000,000.00 976,872.22 23,127.78 1,000,000.00 4.77% Everen 26 995,090.00 3.16% 5.72 FNMA 313588QA6 06/02/99 184 12/03/99 97.5109 500,000.00 487,554.44 12,445.56 500,000.00 5.06% Merrill 26 488,841.50 1.58% 2.90 Subtotal 4,146,944.90 4,111,371.57 35,573.33 4,146,944.90 0.00 0.00 0.00 subtotal 4,130,876.40 13.30% 8.62 Fund 28 LOGIC N/A 100.0000 121,238.39 121,238.39 121,238.39 4.78% LOGIC 28 121,238.39 0.39% 0.00 LO Le •' city +. Inveslmeund As of June 30,1999 Investment Type InstlWtlon LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farts Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv. Cusip Purchase Term Maturity Price Par Book Value Interest Total Prin + Yield To Coupon Interest Seller Market %of Type Number Date in days) Date Per 100 Value (Prin.Only) 9b Mary Int.90 Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 29 LOGIC N/A 100.0000 673,827.59 673,827.59 673,827.59 4.78% LOGIC 29 673,827.59 2.18% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 4.79% FGIC 29 0.00 0.00% 0.00 Subtotal 673,827.59 673,827.59 000 673,827.59 0.00 0.00 0.00 subtotal 673,827.59 2.18% 0.00 Fund 31 LOGIC N/A 100.0000 104,973.71 104,973.71 104,973.71 4.78% LOGIC 31 104,973.71 0.34% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.79% FGIC 31 0.00 0.00% 0.00 Subtotal 104,973.71 104,973.71 0.00 104,973.71 0.00 0.00 0.00 subtotal 104,973.71 0.34% 0.00 Fund 32 LOGIC N/A 100.0000 0.00 0.00 0.00 4.78% LOGIC 32 0.00 0.00% 0.00 Fund 34 LOGIC NIA 100.0000 235,168.12 235,168.12 0.00 235,168.12 4.78% LOGIC 34 235,168.12 0.76% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.79% FGIC 34 0.00 0.00% 0.00 CO 04/23/99 365 04/23/00 100.0000 5,000.00 5,000.00 0.00 5,000.00 5.00% 5.000% Landmark 34 5,000.00 0.02% 0.06 Subtotal 240,168.12 240,168.12 0.00 240,168.12 0.00 0.00 0.00 subtotal 240,168.12 0.78% 0.06 Fund 35 LOGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.78% LOGIC 35 0.00 0.00% 0.00 Fund 37 LOGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.78% LOGIC 37 0.00 0.00% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.79% FGIC 37 0.00 0.00% 0.00 Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 subtotal 0.00 0.00% 0.00 Fund 39 LOGIC N/A 100.0000 109,355.11 109,355.11 109,355.11 4.78% LOGIC 39 109,355.11 0.35% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.79% FGIC 39 0.00 0.00% 0.00 Subtotal 109,355.11 109,355.11 0.00 109,355.11 0.00 0.00 0.00 subtotal 109,355.11 0.35% 0.00 Fund 40 LOGIC N/A 100.0000 87,291.49 87,291.49 87,291.49 4.78% LOGIC 40 87,291.49 0.28% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 4.79% FGIC 40 0.00 0.00% 0.00 FNMA 313588NF8 05/04/99 170 10/21/99 97.7806 250,000.00 244,451.39 5,548.61 250,000.00 4.87% Everen 40 245,982.25 0.79% 1.34 FNMA 31364FML2 01/12/98 720 01/12/00 99.9080 500,000.00 500,000.00 56,000.00 556,000.00 5.65% 5.60% Merrill 40 500,312.50 1,62% 11.65 FHLB 3133M8N42 05/25/99 333 04/28/00 99.9111 1,000,000.00 999,111.00 50,750.00 1,050,750.00 5.17% 5.075% 3,806.25 Vining 869.00 40 995,625.00 3.24% 10.81 FHLB 3133M7GY6 02/18/99 540 08/16/00 100.0000 300,000.00 300,000.00 22,500.00 322,500.00 5.00% 5.000% FSW 40 297,750.00 0.97% 5.24 Subtotal 2,137,291.49 2,130,853.88 134,798.61 2,266,541.49 3,806.25 889.00 0.00 subtotal 2,126,961.24 6.91% 29.04 Fund 50 LOGIC N/A 100.0000 160,982.99 160,982.99 0.00 160,982.99 4.78% LOGIC 50 160,982.99 0.52% 0.00 FGIC N/A 100.0000 101,439.25 101,439.25 0.00 101,439.25 4.79% FGIC 50 101,439.25 0.33% 0.00 FMAC 313396LE1 06/02/99 92 09/02/99 98.7529 500,000.00 493,764.44 6,235.56 500,000.00 5.01% Vining 50 495,484.50 1.60% 1.47 Subtotal 762,422.23 756,186.68 6,235.56 762,422.23 000 0.00 0.00 subtotal 757,906.73 2.45% 1.47 Fund 51 LOGIC N/A 100.0000 100,613.48 100,613.48 0.00 100,613.48 4.78% LOGIC 51 100,613.48 0.33% 0.00 FGIC NIA 100.0000 233,848.94 233,848.94 0,00 233,848.94 4,79% FGIC 51 233,848.94 0.76% 0.00 SLMA 86387RW24 02/11/99 360 02111/00 100.0000 800,000.00 800,000.00 40,400.00 840,400.00 5.05% 5.050% Everen 51 797,500.00 2.59% 9.32 Subtotal 1,134,462.42 1,134,462.42 40,400.00 1,174,862.42 0.00 0.00 0.00 subtotal 1,131,962.42 3.67% 9.32 Fund 53 FGIC N/A 100.0000 959,273.42 959,273.42 0.00 959,273.42 4.79% FGIC 53 959,273.42 3.10% 0.00 tJ'I Fund 54 LOGIC N/A 100.0000 901.61 901.61 0.00 901.61 4.78% LOGIC 54 901.61 0.00% 0.00 FGIC NIA 100.0000 0.00 0.00 0.00 0.00 0.00% FGIC 54 0.00 0.00% 0.00 SLMA 86387RW24 02111/99 360 02/11/00 100.0000 200,000.00 200,000.00 10,100.00 210,100.00 5.05% 5.050% Everen 54 199,375.00 0.65% 2.33 Subtotal 200,901.61 200,901.61 10,100.00 211,001.61 0.00 0.00 0.00 subtotal 200,276.61 0.65% 2.33 City of Euless Investment by Fund As of June 30,1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Fane Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Memll Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv. Cusip Purchase Term Maturity Price Par Book Value Interest Total Pnn.+ Yield To Coupon Interest Seller Market %of Type Number Date in days) Date Per 100 Value (Pnn.Only) a mat'y Int.(M Maty Maturity Rate Purchased Inst Discount Premium Fund Value Portfolio WAM Fund 55 LOGIC N/A 100.0000 26,354.18 26,354.18 0.00 26,354.18 4.78% LOGIC 55 26,354.18 0.09% 0.00 Fund 59 LOGIC N/A 100.0000 37,093.55 37,093.55 0.00 37,093.55 000% LOGIC 59 37,093.55 012% 000 TOTAL 31,103,573.89 30,851,224.16 1,249,751.29 31,750,833.64 56,097.24 5,507.93 2,437.50 TOTAL 30,885,811.00 100.00% 270.28 a o, City of Investment Dy Fund As of September 30,1999 Investment Type Institution ' LOGIC Local Gov't Pool FNMA Fed Nat'l Mort Assoc. FHLB Fed Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Fane Credit Bank FMAC Fed.Home Loan Mort.Corp Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv Cusip Purchase Term Maturity Pnce Par Book Value Interest Total Prin + Yield To Coupon Interest Seller Market %of Type Number Date (in days) Date Per 100 Value (Pnn.Only) CM mat'y Int.et Mat'y Matunty Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 101-General Fund LOGIC N/A 100.0000 49,656.03 49,656.03 49,656.03 521% LOGIC 101 49,656.03 017% 000 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 101 000 000% 0.00 FMAC 313396NT6 05/04/99 182 11/02/99 97.6188 500,000.00 488,094.17 11,905.83 500,000.00 4.89% Everen 101 497,602.92 1.72% 3.13 FNMA 313588NZ4 02/05/99 276 11/08/99 96.4733 520,000.00 501,661.33 18,338.67 520,000.00 4.80% Merrill 101 518,093 77 177% 4.88 FNMA 3135880A6 06/02/99 184 12/03/99 97 5109 250,000.00 243,777.22 6,222.78 250,000.00 506% Banc One 101 247,666.67 086% 1.58 TNOTE 912827304 07/31/98 540 01/31/00 99.8594 500,000.00 499,296.88 40,312.50 540,312.50 547% 5375% 000 Everen 703 12 101 500.468.75 1.76% 9.50 FNMA 313588SN6 05/20/99 257 02/01/00 96.5448 500,000.00 482,723.89 17,276.11 500,000.00 5,05% Merrill 101 490,493 33 170% 4.37 FHLB 3133M7H74 04/22/99 282 02/04/00 99.8337 1,000,000.00 998,337.00 47,900.00 1,047,900.00 5.00% 4.790% 10,37833 FGIC 1,663.00 101 997,18750 3.55% 10.02 FMAC 313396UY7 08/11/99 233 03/30100 96.5007 570,000.00 550,053.80 19,946.20 570,000.00 5.69% Everen 101 554,093.20 1.94% 4.51 FNMA 31364GP78 05/12/99 360 05/12/00 100.0000 500,000.00 500.000.00 25,600.00 525,600.00 512% 5120% 0.00 Banc One 0.00 101 498,437.50 1.76% 6.34 FHLB 3133M74T0 01/21/99 540 07/21/00 100.0000 500,000.00 500,000.00 37,500.00 537,500.00 5.00% 5.000% Everen 101 496,718.75 1.76% 9.51 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 200,000.00 200,000.00 15,000.00 215,000.00 5.00% 5.000% FSW 101 198,500.00 0.70% 3.80 FHLB 3133M8P24 05/17/99 540 11/17/00 100.0000 500,000.00 500,000.00 39,000.00 539,000.00 5.20% 5.200% 0.00 FSW 0.00 101 496,09375 1.76% 951 FHLB 3133MBVE1 06/07/99 540 12/07/00 100.0000 500,000.00 500,000.00 40,237.50 540,237.50 5.17% 5.365% Everen 101 496.875.00 1.76% 9.51 Subtotal 6,089,656.03 6,013.600.31 319,239.59 6,335,206.03 10,378.33 2,366.12 0.00 subtotal 6,041,887 16 21.21% 76.65 Fund 102-General Fund-Emergency FHLB 3133M6BF4 11/04/98 900 05/04/01 100.0000 500,000.00 500,000 00 64,000 00 564,000 00 5.12% 5120% Everen 102 493,437 50 176% 1585 Fund 103-General Fund Contingency FHLB 3133M6BF4 11/04/98 900 05/04/01 100.0000 500,000.00 500,000.00 64,00000 564,000.00 512% 5.120% Everen 103 493,437.50 1.76% 15.85 Fund 201-Hotel/Motel LOGIC N/A 100.0000 152,333.07 152,333.07 152,333.07 5.21% LOGIC 201 152,333.07 0.54% 000 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 201 0.00 0.00% 000 subtotal 152,333.07 152,333.07 0.00 152,333.07 subtotal 152,333.07 0.54% 000 Fund 210-Hatf Cent Operations LOGIC N/A 1000000 163,074.57 163,074 57 0.00 163,074.57 521% LOGIC 210 163,074 57 0.57% 0.00 FGIC N/A 100.0000 264,244.76 264,244.76 0.00 264,244.76 5.19% FGIC 210 264,244.76 O.93% 0.00 FNMA 31364FDEB 09/14/99 388 10/12/00 1000000 200,000.00 200,000.00 18,090.00 218,090.00 588% 6030% 5,092.00 Banc One 210 200,000.00 072% 2.80 Subtotal 627,319.33 627,319.33 18,090.00 645,409.33 5,092.00 0.00 0.00 subtotal 627,319.33 2.23% 2.80 Fund 211-Half Cent Reserve FGIC N/A 1000000 910,587.96 910,587.96 000 910.587.96 519% FGIC 211 910,567.96 321% 0.00 Fund 220-Crime Control and Prevention LOGIC N/A 100.0000 913.32 913.32 0.00 913.32 5.21% LOGIC 220 913.32 0.00% 0.00 FGIC N/A 100.0000 202,433.00 202,433.00 0.00 202,433.00 5.19% FGIC 220 202,433.00 0.71% 0.00 SLMA 86387RW24 02/11/99 360 02/11/00 1000000 200,000.00 200,000.00 10,100.00 210,100.00 5.05% 5.050% Everen 220 199,500.00 0.70% 2.54 Subtotal 403,346.32 403,346 32 10,100.00 413,446 32 0.00 0.00 0.00 subtotal 402,846.32 1A2% 2.54 Fund 230-Police DEA(Federal) LOGIC N/A 1000000 91,399.84 91,399.84 91,399.84 5.21% LOGIC 230 91,399.84 0.32% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 230 0.00 0.00% 0.00 FNMA 31364GJEO 02/11/99 292 11/30/99 99.9141 300,000.00 299,742.19 14,340.00 314,340.00 4.88% 4.780% 2,828.17 FSW 257.81 230 299,625.00 1.07% 3.11 Subtotal 391,399.84 391,142.03 14,340.00 405,739.84 2,828.17 257.81 0.00 subtotal 391,024.84 1.39% 3.11 Fund 231-Police DEA(State) LOGIC N/A 100.0000 (0.00) (0.00) (0.00) 521% LOGIC 231 (0.00) 0.00% 0.00 Fund 232-FTW DEA Task Force LOGIC N/A 100.0000 2,548.93 2,548.93 2,548.93 521% LOGIC 232 2,548.93 0.01% 0.00 Fund 234-LLEBG 97 i LOGIC N/A 100.0000 16,653.24 16,653.24 0.00 16,653.24 5.21% LOGIC 234 16,853.24 0.06% 0.00 City of Euless Investment by Fund As of September 30,1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Memll Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv Cusip Purchase Term Maturity Price Par Book Value Interest Total Prin.+ Yield To Coupon Interest Seller Market %of Type Number Date in days) Date Per 100 Value (Prin.Only mat'y Int.IM Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 235-LLEBG 98 LOGIC N/A 100.0000 22,462.55 22,462.55 0.00 22,462.55 5.21% LOGIC 235 22,462.55 0.08% 0.00 Fund 301-Developers Escrow LOGIC N/A 100.0000 351,517.15 351,517.15 351,517.15 5.21% LOGIC 301 351,517.15 1.24% 0.00 FGIC N/A 100.0000 0.00 0.00 000 5.19% FGIC 301 0.00 0.00% 0.00 FNMA 313384WD7 05/04/99 360 04/28/00 95.2400 500,000.00 476,200.00 23,800.00 500,000.00 5.02% Merrill 301 483,823.33 1.68% 6.04 FHLB 3133M8SF2 05/17/99 360 05/17/00 100.0000 500,000.00 500,000.00 25,500.00 525,500.00 5.10% 5.100% 0.00 FSW 0.00 301 497,968 75 1.76% 6.34 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 300,000.00 300,000.00 22,500.00 322,500.00 5.00% 5.000% FSW 301 297,75000 1.06% 5.71 Subtotal 1,651,517.15 1,627,717.15 71,800.00 1,699,517.15 0.00 0.00 0.00 subtotal 1,631,059.23 5.73% 18.08 Fund 305Streets CIP LOGIC N/A 100.0000 2,939,120.04 2,939,120.04 0.00 2,939,120.04 5.21% LOGIC 305 2,939,120.04 10.35% 0.00 FNMA 3135880A6 06/02/99 184 12/03/99 97.5109 500,000.00 487,554.44 12,445.56 500,000.00 5.06% Merrill 305 495,333.34 1.72% 3.16 Subtotal 3,439,120.04 3,426,674.48 12,445.56 3,439,120.04 0.00 0.00 0.00 subtotal 3,434,453.37 12.07% 3.16 Fund 310-Half Cent CIP LOGIC N/A 100.0000 101,920.71 101,920.71 0.00 101,920.71 5.21% LOGIC 310 101,920.71 0.36% 0.00 FGIC N/A 100.0000 236,693.71 236,693.71 0.00 236,693.71 5.19% FGIC 310 236,693.71 0.83% 0.00 SLMA 86387RW24 02/11/99 360 02/11/00 100.0000 800,000.00 800,000.00 40,400.00 840,400.00 5.05% 5.050% Everen 310 798,000.00 2.82% 10.14 Subtotal 1,138,614.42 1,138,614.42 40,400.00 1,179,014.42 0.00 0.00 0.00 subtotal 1,136,614.42 4.01% 10.14 Fund 320-G.O.CIP-Fire Station LOGIC N/A 100.0000 92,552.95 92,552.95 92,552.95 5.21% LOGIC 320 92,552.95 0.33% 0.00 Fund 325-Police Facility CIP LOGIC N/A 100.0000 658,143.33 658,143.33 658,143.33 5.21% LOGIC 325 658,143.33 2.32% 0.00 Subtotal 658,143.33 658,143.33 0.00 658,143.33 subtotal 658,143.33 2.32% 0.00 Fund 401-Debt Service LOGIC N/A 100.0000 95,954.44 95,954.44 95,954.44 5.21% LOGIC 401 95,954.44 0.34% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 401 0.00 0.00% 0.00 Subtotal 95,954.44 95,954.44 0.00 95,954.44 0.00 0.00 0.00 subtotal 95,954.44 0.34% 0.00 Fund 501-Water and Sewer LOGIC N/A 100.0000 89,806.87 89,806.87 89,806.87 5.21% LOGIC 501 89,806.87 0.32% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% LOGIC 501 0.00 O.OQ% 0.00 FHLB 3133M6D21 06/03/99 146 10/29/99 99.9375 1,000,000.00 999,375.00 50,300.00 1,050,300.00 5.16% 5.030% 29,900.56 Vining 625.00 501 999,375.00 3.62% 5.29 FNMA 313588NS0 05/04/99 181 11/01/99 97.6319 500,000.00 488,159.58 11,840.42 500,000.00 4.89% Banc One 501 497,675.56 1.72% 3.11 FNMA 3135880A6 06/02/99 184 12/03/99 97.5109 250,000.00 243,777.22 6,222.78 250,000.00 5.06% Banc One 501 247,666.67 0.86% 1.58 FHLB 313384SJ9 02/04/99 358 01/28/00 95.4256 500,000.00 477,127.78 22,872.22 500,000.00 4.83% Everen 501 490,800.00 1.68% 6.02 FHLB 313M75B8 01/26/99 424 03/30/00 100.0000 500,000.00 500,000.00 29,444.44 529,444.44 5.00% 5.000% FSW 501 495,312.50 1.76% 7.47 FNMA 31364GH77 05/04/99 346 04/20/00 99.9140 500,000.00 499,570.00 24,900.00 524,900.00 5.07% 4.980% 968.33 FSW 430.00 501 498,125.00 1.76% 6.10 FNMA 31364GP78 05/12/99 360 05/12/00 100.0000 500,000.00 500,000.00 25,600.00 525,600.00 5.12% 5.120% 0.00 Banc One 0.00 501 498,437.50 1.76% 6.34 FHLB 3133M74B9 01/15/99 539 07/14/00 100.0000 1,000,000.00 1,000,000.00 77,855.56 1,077,855.56 5.20% 5.200% Everen 501 993,437.50 3.52% 18.98 FHLB 3133M8TE4 08/03/99 478 12/01/00 99.2813 330,000.00 327,628.13 26,037.00 356,037.00 5.82% 5.260% 2,989.43 Banc One 2,371.87 501 327,525.00 1.16% 5.57 FHLB 313M9KU5 08/16/99 540 02/16/01 100.0000 500,000.00 500,000.00 45,225.00 545,225.00 6.03% 6.030% Everen 501 499,687.50 1.76% 9.51 Subtotal 5,669,806.87 5,625,444.58 320,297.42 5,949,168.87 33,858.32 3,426.87 0.00 subtotal 5,637,849.10 19.93% 69.96 Fund 502-W&S CIP LOGIC N/A 100.0000 294,189.89 294,189.89 294,189.69 5.21% LOGIC 502 294,189.89 1.04% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 502 0.00 0.00% 0.00 FNMA 31364FML2 01/12/98 720 01/12/00 99.9060 500,000.00 499,060.00 56,000.00 556,000.00 5.65% 5.60% Merrill 940.00 502 500,000.00 1.76% 12.65 Subtotal 794,189.89 793,249.89 56,000.00 850,189.89 0.00 940.00 0.00 subtotal 794,189.89 2.79% 12.65 00 !! City i w. Inveslme Fund As of September 30,1999 Investment Type Instltullon LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort Assoc TNOTE Treasury Note CO Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv Cusip Purchase Tenn Maturity Price Par Book Value Interest Total Prin.+ Yield To Coupon Interest Seller Market %of Type Number Dale in days Date Per 100 Value (Prin.Only) 9111 mat'v Int.0 Mal'y Maturity Rale Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 605-Water Impact Fees LOGIC N/A 100.0000 0.00 0.00 000 521% LOGIC 505 0.00 0.00% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 5.19% FGIC 505 0.00 0.00% 0.00 FNMA 31358ONFB 05/04/99 170 10/21/99 97.7806 146,916.00 143,655.24 3,260.76 146,916.00 4.87% Everen 505 146,472.07 0.51% 0.86 FNMA 31364FML2 01/12/98 720 01/12/00 99.9080 500,000.00 500,000.00 56,000.00 556,000.00 5.65% 5.60% Merrill 505 500,000 00 1.76% 12.68 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 300,000.00 300,000.00 22,500.00 322,500.00 5.00% 5.000% FSW 505 297,750.00 1.06% 5.71 Subtotal 946,916.00 943,655.24 81,760.76 1,025,416.00 0.00 0.00 0.00 subtotal 944,222.07 3.32% 19.24 Fund 507-W&S Emergency LOGIC N/A 100.0000 0.00 0.00 0.00 5.21% LOGIC 507 0.00 0.00% 0.00 FMAC 3134A3TE6 06/07/99 1080 06/07/02 100.0000 500,000.00 500,000.00 90,000.00 590,000.00 6.00% 6.000% Everen 507 495,625.00 1.76% 1902, Subtotal 500,000.00 500,000.00 90,000.00 590,000.00 subtotal 495,625.00 1 76% 19.02 Fund 508-Wastewater Impact Fees LOGIC N/A 100.0000 88,425.63 88,425.63 88,425.63 521% LOGIC 508 88,42563 0.31% 0.00 FNMA 313588NF8 05/04/99 170 10/21/99 97.7806 103,084.00 100,796.15 2,287.85 103,084.00 4.87% Everen 508 102,772.51 0.35% 0.60 FHLB 3133M8N42 05/25/99 333 04/28/00 99.9111 1,000,000.00 999,111.00 50,750.00 1,050,750.00 5.17% 5.075% 3,806.25 Vining 889.00 508 996,25000 3.53% 11.76 Subtotal 1,191,509.63 1,188,332.78 53,037.85 1,242,259.63 3,806.25 889.00 0.00 subtotal 1,187,448.14 4.20% 12.36 Fund 610-Drainage LOGIC N/A 100.0000 26,502.82 26,502.82 26,502.82 5.21% LOGIC 510 26,50282 0.09% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 510 0.00 0.00% 0.00 FNMA 313588ZR9 08/02/99 354 07121/00 94.7588 500,000.00 473,794.17 26,205.83 500,000.00 5.64% Merrill 510 477,465.30 1.67% 5.91 Subtotal 526,502.82 500,296.98 26,205.83 526,502.82 0.00 0.00 0.00 subtotal 503,968.12 1.76% 591 Fund 511-Drainage CIP LOGIC N/A 100.0000 110,775.92 110,775.92 110,775.92 5.21% LOGIC 511 110,775.92 0.39% 0.00 FGIC N/A 100.0000 101,216.50 101,216.50 0.00 101,216.50 5.19% FGIC 511 101,216.50 0.36% 0.00 Subtotal 211,992.42 211,992.42 0.00 211,992.42 0.00 0.00 0.00 subtotal 211,992.42 0.75% 0.00 Fund 521-Arbor Daze LOGIC N/A 100.0000 106,337.59 106,337.59 106,337.59 5.21% LOGIC 521 106,337.59 0.37% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 5.19% FGIC 521 0.00 0.00% 0.00 Subtotal 106,337.59 106,337.59 0.00 106,337.59 0.00 0.00 0.00 subtotal 106,337.59 0.37% 0.D0 Fund 530-Softball World-Operating LOGIC N/A 100.0000 238,223.55 238,223.55 0.00 238,223.55 5.21% LOGIC 530 238,223.55 0.84% 0.00 FGIC N/A 100.0000 100,811.68 100,811.68 0.00 100,811.68 5.19% FGIC 530 100,811.88 0.36% 0.00 CD 04/23/99 365 04/23/00 100.0000 5,000.00 5,000.00 0.00 5,000.00 5.00% 5.000% Landmark 530 5,000.00 0.02% 0.06 Subtotal 344,035.23 344,035.23 0.00 344,035.23 0.00 0.00 0.00 subtotal 344,035.23 1.21% 0.06 Fund 531 Softball World-CIP&Debt LOGIC N/A 100.0000 0.00 0.00 0.00 0.00 5.21% LOGIC 531 0.00 0.00% 0.00 Fund 540Gotf Course LOGIC N/A 100.0000 75,684.53 75,884.53 75,684.53 5.19% LOGIC 540 75,684.53 0.27% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 540 0.00 0.00% 0.00 Subtotal 75,684.53 75,684.53 0.00 75,684.53 0.00 0.00 0.00 75,684.53 0.27% 0.00 Fund 552-Phase II Athletic Complex LOGIC N/A 100.0000 70,543.05 70,543.05 0.00 70,543.05 5.21% LOGIC 551 70,543.05 0.25% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 5.19% FGIC 551 0.00 0.00% 0.00 Subtotal 70,543.05 70,543.05 0.00 70,543.05 0.00 0.00 0.00 subtotal 70,543.05 0.25% 0.00 Fund 601-Equipment Replacement �O LOGIC N/A 100.0000 254,071.11 254,071.11 254,071.11 5.21% LOGIC 601 254,071.11 0.89% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 601 0.00 0.00% 0.00 FHLB 3133M7GY6 02/18/99 540 08/18/00 100.0000 200,000.00 200,000.00 15,000.00 215,000.00 5.00% 5.000% FSW 601 198,500.00 0.70% 3.80 Subtotal 454,071.11 454,071.11 15,000.00 469,071.11 0.00 0.00 0.00 Subtotal 452,571.11 1.60% 3.80 City of Euless Investment by Fund As of September 30,1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farts Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Inv. Cusip Purchase Term Maturity Price Par Book Value Interest Total Prin.+ Yield To Coupon Interest Seller Market %of Type Number Date in days Date Per 100 Value (Prin.Only) 911 mat'y Int.d%Maty Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 6104naurance LOGIC N/A 100.0000 285,969.27 285,969.27 285,969.27 5.21% LOGIC 610 285,969.27 1.01% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 610 0.00 0.00% 0.00 subtotal 285,969.27 285,969.27 0.00 285,969.27 subtotal 285,969.27 1.01% 0.00 Fund 615-Risk Management LOGIC N/A 100.0000 202,549.80 202,549.80 202,549.80 5.21% LOGIC 615 202,549.80 0.71% OOO FGIC N/A 100.0000 0.00 0.00 0.00 5.19% FGIC 615 0.00 0.00% 0.00 FNMA 313588NF8 05/04/99 170 10/21/99 97.7806 250,000.00 244,451.39 5,548.61 250,000.00 4.87% Everen 615 249,244.58 0.86% 1.46 FNMA 31364FDE8 09/28/99 388 10/12/00 100.0000 200,000.00 200,000.00 18,090.00 218,090.00 5.88% 6.030% 5,561 00 Banc One 615 200,000.00 0.72% 2.81 Subtotal 652,549.80 647,001.19 23,638.61 670,639.80 5,561.00 0.00 0.00 subtotal 651,794.38 2.30% 4.27 Fund 710-FW DEA Task Force Trust and Agency LOGIC N/A 100.0000 7,618.50 7,618.50 7,618.50 5.21% LOGIC 710 7,618.50 0.03% 0.00 TOTAL 28,529,936.30 28,333,882.87 1,280,355.62 29,622,118.30 61,524.07 7,879.80 0.00 TOTAL 28,373,164.54 100.00% 295.46 r O City of( ..'.. Schedule of Fugchases For July 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort Corp. Vining Vining Sparks Memll Memll Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc. TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Total P+I Inv Custp Purchase Term Maturity Price Par Book Value Interest Total Yield To Coupon Interest Seller Maty Net of Total Cost Type Number Date in days) Date Per 100 Value (Prin.Only) mat'y Pnn+Int Matunty Rate Purchased Inst Discount Premium Fund Prem Disc_&Int PL of Investment FGIC 07/02/99 100.0000 200,000.00 200,000.00 0.00 200,000.00 4.80% FGIC Vanous 200,000.00 200,000.00 LOGIC 07/08/99 100.0000 400,000.00 400,000.00 000 400,000.00 4.88% Logic Vanous 400,000 00 400.000 00 LOGIC 07/09/99 100.0000 575,000.00 575,000.00 0.00 575,000.00 4.86% Logic Vanous 575.00000 575,000.00 FGIC 07/09/99 1000000 200,000.00 200,000.00 0.00 200,000.00 480% FGIC Vanous 200,000 00 200,000 00 LOGIC 07/29/99 100.0000 900,000.00 900,000.00 0.00 900,000.00 4.97% Logic Various 900,000.00 900,000 00 LOGIC 07/30/99 100.0000 120,000.00 120.000.00 0.00 120,000.00 5.01% Logic Various 120.00000 120,000.00 TOTALS 2,395,000.00 2,395,000.00 0.00 2,395,000.00 4.89% 0.00 0.00 0.00 2,395,000.00 2,395,00000 LOGIC DIVIDENDS REINVESTED 26,584.61 26,584.61 FGIC DIVIDENDS REINVESTED 6,804 75 6,804.75 r r City of Euless Schedule of Purchases For August 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanaclal Investors Trst FSW First Southwest LNOMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mor.Assoc. TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Total P+I Inv. Cusip Purchase Term Maturity Price Par Book Value Interest Total Yield To Coupon Interest Seller Mat'y Net of Total Cost Type Number Date in days) Date Per 100 Value (Pnn.Only) 0 mat,y Prin+In Maturity Rate Purchased Inst. Discount Premium Fund Prem_Disc&Int Pi of Investment FNMA 313588ZR9 08/02/99 354 07/21/00 94.7588 500,000.00 473,794.17 26,205.83 500,000.00 5.64% Merrill 510 500,000.00 473,794.17 FHLB 3133M8TE4 08/03/99 478 12/01/00 99.2813 330,000.00 327,628.13 26,037.00 356,037.00 5.82% 5.260% 2,989.43 Banc One 2,371.87 501 353,047.57 330,617.56 LOGIC 08/04/99 100.0000 1,125,000.00 1,125,000.00 0.00 1,125,000.00 4.99% LOGIC various 1,125,000.00 1,125,000.00 FGIC 08/06/99 100.0000 100,000.00 100,000.00 0.00 100,000.00 492% FGIC various 100,000.00 100,000.00 FMAC 313396UY7 08/11/99 233 03/30/00 96.5007 570,000.00 550,053.80 19,946.20 570,000.00 5.69% Everen 101 570,00000 550,053.80 LOGIC 08/13/99 100.0000 750,000.00 750,000.00 0.00 750,000.00 5.04% LOGIC various 750,000.00 750,000.00 FHLB 313M9KU5 08/16/99 540 02/16/01 100.0000 500,000.00 500,000.00 45,225.00 545,225.00 6.03% 6.030% Everen 501 545,225.00 600,000.00 LOGIC 08/27/99 100.0000 250,000.00 250,000.00 0.00 250,000.00 5.14% LOGIC various 250,000.00 250,000.00 LOGIC 08/30/99 100.0000 500,000.00 500,000.00 0.00 500,000.00 5.16% LOGIC various 500,000.00 500,000.00 TOTALS: 4,625,000.00 4,576,476.09 117,414.03 4,696,262.00 5.38% 2,989.43 2,371.87 0.00 4,693,272.57 4,579,465.52 LOGIC DIVIDENDS REINVESTED 25,094.25 25,094.25 FGIC DIVIDENDS REINVESTED 7,153.41 7,153.41 a N City ors Schedule of Purchases for September 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed Nat'l Mort Assoc. FHLB Fed Home Loan Bank FGIC Finanactal Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp. Vining Vining Sparks Memll Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc. TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Cost Accrued Total P+I Inv Cusip Purchase Term Maturity Price Par Book Value Interest Total Yield To Coupon Interest Seller Maty Net of Total Cost Type Number Date in days) Date Per 100 Value (Prin.Only) A mat,y Pnn+Int Maturity Rate Purchased Inst. Discount Premium Fund Prom, &Int Pt of Investment Logic 09/02/99 100.0000 1,100,000.00 1,100,000.00 0.00 1,100,000.00 5.19% Logic Various 1,100,000.00 1,100,000.00 Logic 09/03/99 100.0000 525,000 00 525,000.00 0.00 525,000 00 516% Logic Various 525,000 00 525,000 00 Logic 09/08/99 100.0000 500,000 00 500,000 00 0.00 500,000.00 522% Logic Various 500.000 00 500,000 00 Logic 09/10/99 100.0000 150,000.00 150,000.00 0.00 150,000.00 5.18% Logic Various 150,000.00 150,00000 FNMA 31364FDEB 09/14/99 388 10/12/00 100.0000 200,000.00 200,000.00 18,090.00 218,090.00 588% 6030% 5.092.00 Banc One 210 212,998 00 205,092.00 Logic 09/24/99 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 5.23% Logic Various 1,000,00000 1,000,00000 FNMA 31364FDE8 09/28/99 388 10/12/00 100.0000 200,000.00 200,000.00 18,090.00 218,090.00 588% 6 030% 5,561.00 Banc One 615 212,529 00 205,561 00 LOGIC 09/30/99 100.0000 250,000.00 250,000.00 0.00 250.000.00 5.34% LOGIC Various 250,000.00 250,00000 TOTALS 3,925,000.00 3,925,000.00 36,180 00 3,961.180.00 538% 10,653.00 0.00 0.00 3,950,527 00 3.835.653 00 LOGIC DIVIDENDS REINVESTED 28,257.54 28,257.54 FGIC DIVIDENDS REINVESTED 7,467.85 7,467.85 a W City of Euless Schedule of Maturities For July 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanaclal Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort Corp Vining Vining Sparks Merrill Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Term to Cost Accrued Total P+I Inv. Cusip Purchase Maty/Call Maty/Call Price Par Book Value Interest Total Pnn.+ Yield To Coupon Interest Seller Maty or call Net of Total Cost Type Number Date in days) Date Per 100 Value (Pnn.Only) (M mat's/Call Int.CQ Mat'y Matunty Rate Purchased Inst. Discount Premium Fund Prem&Int Pur of Investment LOGIC 07/06/99 100.0000 440,000.00 440,000.00 0.00 440,000.00 487% LOGIC various 440,000 00 440,000 00 LOGIC 07/12/99 100.0000 500,000.00 500,000.00 0.00 500,000.00 488% LOGIC various 500,000.00 500.000 00 LOGIC 07/14/99 100.0000 300,000.00 300,000.00 0.00 300.000.00 487% LOGIC various 300,000 00 300.000 00 LOGIC 07/20/99 100.0000 300,000.00 300,000.00 0.00 300,000.00 493% LOGIC vanous 300.000 00 300.000.00 LOGIC 07/22/99 100.0000 75,000.00 75,000.00 0.00 75,000.00 492% LOGIC various 75.000.00 75,000.00 LOGIC 07/23/99 100.0000 40,000.00 40,000.00 0.00 40,000.00 4.95% LOGIC various 40,00000 40,000.00 LOGIC 07/28/99 100.0000 200,000.00 200,000.00 0.00 200,000.00 496% LOGIC various 200.000.00 200,000.00 FHLB 313384JT7 02/04199 175 07/29/99 97.7736 1,000,000.00 977,736.11 22,263.89 1,000,000.00 475% Banc One 101 1,000,000 00 977,736.11 TOTAL 2,855,000.00 2.832,736 11 22,263.89 2,855,000.00 489% 0.00 000 0.00 2,855,000 00 2,632 736 11 a City of Schedule of Matuntles For August 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc FHLB Fed Home Loan Bank FGIC Finanaclal Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed Home Loan Mort.Corp Vining Vining Sparks Memll Memll Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Term to Cost Accrued Total P+I(B Inv. Cusip Purchase Mat'y/Call Mat'y/Call Price Par Book Value Interest Total Prin.+ Yield To Coupon Interest Seller Mat'y or call Net of Total Cost Type Number Date in days) Date Per 100 Value (Pnn.Only) (M maty/Call Int.0 Mat'y Maturity Rate Purchased Inst. Discount Premium Fund Prem 8 Int Pur. of Investment LOGIC 08/02/99 100.0000 650,000.00 650.000.00 0.00 650,000.00 5.03% LOGIC various 650,000.00 650,000.00 LOGIC 08/03/99 100.0000 500.000 00 500,000.00 0.00 500,000.00 5.05% LOGIC various 500,000.00 500,000 00 FHLB 313384JZ3 02/04199 181 08/04/99 97.6872 1,000,000.00 976,872.22 23,127.78 1,000,000.00 4.77% Everen 305 1,000.00000 976,87222 LOGIC 08/10/99 100.0000 300,000.00 300,000.00 0.00 300,000.00 502% LOGIC various 300,000.00 300,000 00 LOGIC 08/11/99 100.0000 550,000.00 550,000.00 0.00 550,000.00 5.02% LOGIC various 550,000.00 550,00000 LOGIC 08/16/99 100.0000 750,000.00 750,000.00 0.00 750,000.00 504% LOGIC various 750.000.00 750,000.00 LOGIC 08/17/99 100.0000 175,000.00 175.000.00 000 175.000.00 5.15% LOGIC various 175,000.00 175,000.00 LOGIC 08/19/99 100.0000 250,000.00 250,000.00 0.00 250,000.00 5,01% LOGIC various 250,000 00 250,000.00 LOGIC 08/24/99 100.0000 600,000.00 600,000.00 0.00 600,000.00 5.08% LOGIC various 600,000.00 600,00000 LOGIC 08/26/99 100.0000 100,000.00 100,000.00 0.00 100,000.00 5.13% LOGIC vanous 100,000 00 100,000.00 FMAC 313396LB7 02/05/99 206 08/30/99 97.3449 515,000.00 501,326.18 13,673.82 515,000.00 4.82% Everen 501 515,00000 501,32618 FHLB 3133882F6 06/04199 86 08/31/99 100.6094 400,000.00 402,437.50 15,732.00 415,732.00 5.18% 7.866% 8,215.60 Vining 2,437.50 502 405,078.90 410,653.10 TOTAL 5,790,000.00 5,755,635.90 52,533.60 5,805,732.00 5.02% 8,215.60 0.00 2,437.50 5,795,078.90 5,763,851.50 a Um City of Euless Schedule of Maturities For September 1999 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed.Nat'l Mort.Assoc. FHLB Fed.Home Loan Bank FGIC Finanacial Investors Trst FSW First Southwest LNDMRK Landmark Bank FGIC Money Market Pool FFCB Fed.Farm Credit Bank FMAC Fed.Home Loan Mort.Corp Vining Vining Sparks Memll Merrill Lynch LOGIC Local Gov't Investment Cooperative SLMA Student Loan Mort.Assoc. TNOTE Treasury Note CD Certificate of Deposit BANCONE Banc One Capital Everen Everen Securities Tenn to Cost Accrued Total P+I(61 Inv. Cusip Purchase Mat'y/Call Mat'y/Call Price Par Book Value Interest Total Prin.+ Yield To Coupon Interest Seller Maty or call Net of Total Cost Type Number Date in days) Date Per 100 Value (Pnn.Only) LQ maty/Call Int LQ Maty Maturity Rate Purchased Inst. Discount Premium Fund Prem 8 Int Pur. of Investment FMAC 3133961E1 06/02/99 92 09/02/99 98.7529 1,000,000.00 987,528.89 12,471.11 1,000,000.00 5 01% Vining 210,325 1,000.000.00 987,528.89 FNMA 3135881-1-7 06/02/99 98 09/08/99 98.6824 500,000.00 493,412.22 6,587.78 500,000.00 497% Merrill 6158301 500.000.00 493,412.22 LOGIC 09/14/99 100.0000 2,000,000.00 2,000,000.00 0.00 2,000,000.00 522% LOGIC various 2,000.000.00 2,000,000.00 FHLB 313384MCO 02/08/99 228 09/24/99 97.0867 1,000,000.00 970,866.67 29,133.33 1,000,000.00 4.78% Banc One 1018501 1,000,000.00 970,866.67 LOGIC 09/28/99 100.0000 475,000.00 475,000.00 0.00 475.000.00 5,31% LOGIC various 475,000.00 475,000.00 TOTAL 4,975,000.00 4,926,807.78 48,192.22 4,975,000.00 5.06% 0.00 0.00 0.00 4,975,000.00 4,926,60778 l� 01 4 nresa x+MI sy FLnd AS of SWembw 30.1999 F"L FDIC LOCA Oct-99 No�,@@ Do,- i FIylApp May 00 AEN Qct No F9t,41 May-01 � Istal 101 0.00 49,656.03 989,755.50 243,777.22 499,296.88 1,491,439.22 550,053.80 500.000.00 500,00000 200.000.00 500,000.00 500,00000 6,023,978.65 Y 102 0.00 0.00 500,00000 500,000.00 103 000 0.00 500,000.00 500,000.00 201 0.00 152,333.07 152,333.07 210 264,244.76 163,074.57 205,092 00 632,411.33 211 910,587.95 0.00 910,587.96 220 202,433.00 913.32 200,00000 403,346.32 230 0.00 91,399.84 302,570.36 393,970.20 231 0-00 (0.00) (000) 232 0.00 2,548.93 2,548.93 234 0.00 16,653.24 16,653.24 235 0.00 22,462.55 22,462.55 301 0.00 351,517.15 476,200.00 500,000.00 300,000.00 1.627.71T 15 305 0.00 2,939,12004 487,554.44 3,426,674.48 310 236,693.71 101,920.71 800,000.00 1,138,614.42 320 0.00 92,552.95 92,552.95 325 0,00 658,143.33 658,143.33 401 0.00 95,954.44 95,954.44 501 0.00 89,806.87 1,029,275.56 488,159.58 243,777.22 477,127.78 500,000.00 500,538.33 500,000.00 1,000.000.00 330,61756 500,000.00 5,659,302.90 502 0.00 294,189.89 499,060.00 793,249.89 505 0.00 0.00 143,655.24 500,000.00 300,000.00 943.655.24 507 0.00 0.00 500,000.00 500,000.00 506 0.00 88,425.63 100,79615 1,002,917.25 1,192,139.03 510 0.00 26,502.82 473,794.17 500,29699 511 101,216.50 110,775.92 211,992.42 520 0.00 0.00 0.00 521 0.00 106,337.59 106,337.59 530 100,811.68 238,223.55 5,000.00 344,03523 531 0.00 0.00 0.00 540 0.00 75,684.53 75,684.53 541 0.00 0.00 0.00 550 0.00 0.00 0.00 552 0.00 70,543.05 70,543.05 601 0.00 254,071.11 200,000.00 454,071.11 610 0.00 285,959.27 285,969.27 615 0.00 202,549.80 244,451.39 205,561.00 652,562.19 710 0.00 7,618.50 7,618.50 Total 1,815,98761 6,588,94869 1,518,178.34 1,780,485.44 975,108.88 1,975,484.66 2491439.22 1,050,053.80 1,984,655.58 1,500,000.00 1,973,79417 1,000,000.00 410,653.00 500.000.00 830,617.56 500,000.00 1,000,000.00 500,000.00 28 395,406 95 a V • End of Month Reports Fiscal Year 1998-99 •Cash&Debt Department Prepared by: October 31, 1998 Vicki Rodriquez October 1997 1998 C-cent of funds invested 103% 102% Consolidated Cash, Operating Account ($512,323) ($465,000) 46%of City funds are available for use within 30 days, of which 39% is accessible on a daily basis. This degree of liquidity is due to an inverted yield curve. Currently, there is no advantage in placing funds beyond 6 months. Investment maturities for October were$7,451,838(cost). These investments yielded an average of 5.47%. Investment purchases for October were$7,287,749(cost). These investments yielded an average of 4.98% PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 09/30/98 % 10/31/98 % Treasuries: $499,297 1.80% $499,297 1.81% Agencies: 18,141,884 65.44% 16,382,794 59.35% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 7,973,996 28.76% 7,651,335 27.72% FGIC: 1.103,888 3.98% 3.064.302 11.10% Total $27,724,065 100% $27,602,728 100% The City's average yield on investments was 5.36%and the average 90 day T-Bill yield was 4.03%which is a 133 basis point spread over the benchmark. This equates to approximately$367,116. Total interest received for October was$165,212. Market Activity* e Fed cut interest rates twice since the end of September. This has caused a great deal of concern over how this would effect the ,:economy. Despite the concerns, Federal Reserve officials are optimistic about the economy's ability to pull through. However, the Fed would be willing to cut rates again if any signs of a recession surface, and some economists predict more rate cuts this year and next. The last two months of this year will show the results of an economic turbulent year. They also may be indicators of our economy's performance next year. The holiday shopping season could bring an increase in sales, but retailers are being cautious. Retail sales have remained-unchanged from August to September, and industrial production and new housing starts have dropped. Unemployment is holding steady at 4.6 percent. What does this mean for us? As current investments mature, they will be reinvested at a much lower yield. We will continue to see the yields drop on short-term and long-term investments. Currerrtly the average yield on our portfolio is a 5.36%down from 5.58% last month. We will continue to see this average drop in the coming months. Key Rates 30-Oct Year An Certificates of Deposit: 3 month 4.92% 5.32% 6 month 5.02% 5.63% Treasury Bill: 91 day 3.85% 4.96% 52 Week 4.05% 5.20% Intertest Rate Outlook 12/01/98 02/01/99 05/01/9 9 Fed Funds 4.80% 4.50% 4.20% 30 day prime bank CD 4.90% 4.60% 4.40% 3 Month T-Bill Yield 4.20% 4.10% 4.00% *Source: -)FOA,"Public Investor," November 6, 1998 Terrill Lynch, Daily Market Updates Cash& Debt Department Prepared by: Q November 30, 1998 Vicki Rodriquez November 1997 1998 Percent of funds invested 100% 100% Consolidated Cash, Operating Account $30,229 $487,174 38%of City funds are available for use within 30 days, of which 32% is accessible on a daily basis. This degree of liquidity is due to an inverted yield curve. Currently, there is no advantage in placing funds beyond 6 months. Investment maturities for November were$6,426,294 (cost). These investments yielded an average of 5.31%. Investment purchases for November were$6,049,117 (cost). These investments yielded an average of 4.93% PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 10/31/98 % 11/30/98 % Treasuries: $499,297 1.81% $499,297 1.83% Agencies: 16,382,794 59.35% 17,840,075 65.48% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 7,651,335 27.72% 6,328,631 23.23% FGIC: 3,064,302 11.10% 2.571,660 9.44% Total $27,602,728 100% $27,244,663 100% The City's average yield on investments was 5.26%and the average 90 day T-Bill yield was 4.52%which is a 74 basis point spread over the benchmark. This equates to approximately$201,611. Total interest received for November was$176,255. Market Activity" Inflation remained unchanged in recent months and continues to be lower than a year ago. Earlier this year, Federal Reserve chairman considered raising interest rates to ward off inflation. However, the Fed ended up cutting rates to avoid a credit crunch. In November, the Fed cut both the Fed funds rate and the discount rate by 25 basis points. By cutting the discount rate, the action was more aggressive than expected. In its statement, the Fed said that the markets have settled, but that"unusual strains remain". The Fed also said that the 75 basis points cut in the Fed funds rate since September should sustain the economic expansion. The Fed now sees the risk from unsettled world financial markets as being greater than the risk of inflation. The rate cuts so far have been motivated primarily by the signals from the financial markets. However, many economists expect a series of rate cuts in 99' motivated by signs of a slowing economy. The Federal Reserve meets again on December 22, 1998. A move at this meeting will depend upon the economic data for the first few weeks in December. The impeachment proceedings for President Clinton could have a tremendous effect on the market. For our portfolio,we will continue to see the average of our portfolio drop as current investments are being reinvested at lower rates. Key Rates 27-Nov Year Aqo Certificates of Deposit: 3 month 4.76% 5.44% 6 month 4.96% 5.44% Treasury Bill: 91 day 4.40% 5.17% 52 Week 4.40% 5.14% Interest Rate Outlook 01/01/99 03/01/99 06/01/9 Fed Funds 4.70% 4.50% 4.20% 30 day prime bank CD 4.80% 4.60% 4.30% 3 Month T-Bill Yield 4.30% 4.10% 3.90% *Source: GFOA, "Public Investor," December 4, 1998 Merrill Lynch, Daily Market Updates Cash&Debt Department Prepared by: \ December 31. 1998 Vicki Rodriquez v December I 1997 1998 —eercent of funds invested 1000/0 101% Consolidated Cash, Operating Account $161,633 ($227,344) 41%of City funds are available for use within 30 days, of which 37% is accessible on a daily basis. Investment maturities for December were$2,698,238(cost). These investments yielded an average of 5.18%. Investment purchases for December were$5,507,341 (cost). These investments yielded an average of 4.98% The difference between purchases and maturities is due to the receipt of property tax payments during the month of December. PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 11/30/98 % 12/31/98 % Treasuries: $499,297 1.83% $499,297 1.66% Agencies: 17,840,075 65.48% 18,499,178 61.47% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 6,328,631 23.23% 6,853,469 22.77% FGIC: 2,571.660 944° 4,239.605 14.09% Total $27,244,663 100% $30,096,550 100% The City's average yield on investments was 5.21%and the average 90 day T-Bill yield was 4.52%which is a 69 basis point spread over the benchmark. This equates to approximately$207,666. Total interest received for December was$209,749. Market Activity' The Fed has cut short term interest rates three times since September, but recently announced it would not make any further adjustrnents at this time. This decision was widely anticipated, since the economy and stock market showed gains after the November rate cut The rate cuts may have helped keep inflation low, which dropped in November. Some economists predict that this year's inflation level will be the lowest the U.S. has seen in 30 years. On the surface, the economy seems to be doing better these past few months, yet experts continue to predict slow growth in 1999. However focusing specifically on statistics, the numbers reflect continuing consumer confidence in the economy. Although retail sales dropped minimally in November,they are still higher than a year ago. . The three rate cuts by the Fed has impacted the rate at which we are reinvesting our funds. In September,the average yield on our portfolio was 5.58°/x. Currently, our average yield is 5.21%. We can expect our average yield to decline even further as current investments mature. Key Rates 25-Dec Year Ago Certificates of Deposit: 3 month 4.78% 5.39% 6 month 4.95% 5.57°x6 Treasury Bill: 91 day 4.39% 5.15% 52 Week 4.31% 5.47% Interest Rate Outlook 02/01/99 04/01/99 07/01/99 Fed Funds 4.70% 4.30% 4.20% 30 day prime bank CD 5.20% 5.00% 4.60% 3 Month T-Bill Yield 4.30% 4.10% 4.10% 'Source: GFOA, "Public Investor,"January 1, 1999 Merrill Lynch, Daily Market Updates Cash&Debt Department Prepared by: January 31,1999 Vicki Rodrique� �.� January 'D 1998 1999 Nercent of funds invested 100% 1000/0 Consolidated Cash, Operating Account $212,014 $59,921 40%of City funds are available for use within 30 days, of which 37% is accessible on a daily basis. Investment maturities for January were$5,648,357 (cost). These investments yielded an average of 5.03%. Investment purchases for January were$6,961,415(cost). These investments yielded an average of 5.04% The difference between purchases and maturities is due to the receipt of property tax payments during the month of January. PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 12/31/98 % 12/31/98 % Treasuries: $499,297 1.66% $499,297 1.60% Agencies: 18,499,178 61.47% 19,181,414 61.48% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 6,853,469 22.77% 5,003,261 16.04% FGIC: 4,239.605 14.09% 6.509.708 20.87% Total $30,096,550 1000/0 $31,198,680 100% The City's average yield on investments was 5.15°x6 and the average 90 day T-Bill yield was 4.43%which is a 72 basis point spread over the benchmark. This equates to approximately$224,630. Total interest received for January was$98,883. rket Activity* Consumer confidence in the economy may have helped home sales set a record high in December. Sales of previously owned homes surged in December, making 1998 the strongest year ever due to low mortgage rates,strong Job growth, and a rising stock market In addition, robust consumer spending, spurred by law inflation, low interest rates, and low unemployment adds to a healthy economy. Both consumer and producer prices are holding steady and some are declining throughout the country. The Fed anticipates that the U.S. economy will stabilize in 1999. Therefore,they do not anticipate any further rate cuts when they meet in February. However, many Wall Street economists believe that the Fed will cut interest rates to as low as 4.25%through the course of 1999. But for now,we can expect interest rates to remain fairly stable on the short end of the curve. Key Rates 29-Jan Year Ago Certificates of Deposit: 3 month 4.72% 5.22% 6 month 4.94% 5.51% Treasury Bill: 91 day 4.31% 5.07% 52 Week 4.34% 5.07% Interest Rate Outlook 03/01/99 05/01/99 08/01/99 Fed Funds 4.70% 4.60% 4.50% 30 day prime bank CD 4.80% 4.60% 4.50% 3 Month T-Bill Yield 4.30% 4.20% 4.10% *Source: GFOA,"Public Investor,"February 5, 1999 Merrill Lynch, Daily Market Updates Cash&Debt Department Prepared by- February yFebruary 28, 1999 Viicki Rodriquez February 1998 1999 recent of funds invested 101% 100'/0 Consolidated Cash, Operating Account ($286,815) ($53,154) 30%of City funds are available for use within 30 days, of which 23% is accessible on a daily basis. Investment maturities for February were$7,939,121 (cost). These investments yielded an average of 4.96%. Investment purchases for February were$7,708,161 (cost). These investments yielded an average of 4.85% PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 01/31/99 % 02/28/99 %° Treasuries: $499,297 1.60% $499,297 1.61% Agencies: 19,181,414 61.48% 23,300,453 75.17% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 5,003,261 16.04% 4,020,041 12.97% FGIC: 6,509,708 20.87% 3,172.469 10.23% Total $31,198,680 100% $30,997,260 100% The City's average yield on investments was 5.07%and the average 90 day T-Bill yield was 4.54%which is a 53 basis point spread over the benchmark. This equates to appro)amately$164,285 annually. Total interest received for February was$110,027.45. Market Activity' ted reports inflation and unemployment have both dropped to their lowest numbers in decades. However the Fed announced words of caution. Predictions of a slowing U.S. economy in 1999 have not happened. In fad the economy continues to grow rapidly. The Fed's concern is that"strong growth cannot continue without a pick-up in inflation unless productivity growth increases significantly. Momentum appears to be carrying over into 1999 from 1998's best year ever in housing starts. January was higher than previous months with the highest numbers in 13 years. Housing starts were strongest in the South. We are still e)pecting interest rates to remain fairly stable for the short term. Kev Rates 26-Feb Year Ago Certificates of Deposit: 3 month 4.74% 5.23% 6 month 4.95% 5.53% 91 da Treasury Bill: y 4.44% 5.08% 52 Week 4.37% 5.23% 04/01/99 06/01/99 09/01/99 Interest Rate Outlook 4.70% 4.60% Fed Funds 4.80% 4.90% 4.80% 4.70% 30 day prime bank CD 4.40% 4.30% 3 Month T-Bill Yield 4.50% `Source: GFOA, "Public Investor,"March 5, 1999 Merrill Lynch, Daily Market Updates Cash&Debt Department Prepared by: Manch 31, 1999 Vicki Rodriquez March 1998 1999 Percent of funds invested 100•/0 102% Consolidated Cash, Operating Account $102,249 ($585,701) 36%of City funds are available for use within 30 days, of which 28% is accessible on a daily basis. Investment maturities for March were$4,326,794 (cost). These investments yielded an average of 5.02%. Investment purchases for March were$3,395,000 (cost). These investments yielded an average of 4.79% The difference between purchases and maturities is due to debt service payments for the golf course. PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 02/28/99 % 03/31/99 % Treasuries: $499,297 1.61% $499,297 1.66% Agencies: 23,300,453 75.17% 21,098,659 70.10% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 4,020,041 12.97% 4,036,392 13.41% FGIC: 3.172.469 10.23% 4,457.458 14.81% Total $30,997,260 100% $30,096,806 100% The City's average yield on investments was 5.04%and the average 90 day T-Bill yield was 4.55%which is a 49 basis point spread over the benchmark. This equates to approximately$147,474 annually. Total interest received for March was$88,802. Market Activity* Consumer confidence continues to vibrate throughout the economy. Unemployment continues to hold steady. However some economists predict job growth will be extremely weak in the coming months. The Federal Reserve is predicting continued strong domestic growth, especially in consumer spending, residential construction and commercial construction. The widely expected slump in consumer spending and retail sales never materialized. Despite a strong U.S. economy, inflation continues to remain under control. Therefore, Federal Reserve Chairman Alan Greenspan recently testified that he does not know if the Fed will raise or lower interest rates at this time. Key Rates 26-Mar Year Ago Certificates of Deposit: 3 month 4.73% 5.26% 6 month 4.96% 5.57% Treasury Bill: 91 day 0.44% 5.03% 52 Week 4.67% 5.11% Interest Rate Outlook 05/01/99 07/01/99 10/01/99 Fed Funds 4.80% 4.70% 4.50% 30 day prime bank CD 4.80% 4.70% 4.60% 3 Month T-Bill Veld 4.40% 4.30% 4.20% *Source: GFOA, "Public Investor,"April 2, 1999 Merrill Lynch, Daily Market Updates Cash& Debt Department Prepared by: April 30, 1999 Vicki Rodriquez �v April 1998 1999 _scent of funds invested 102% 100% Consolidated Cash, Operating Account ($432,948) $141,555 45%of City funds are available for use within 30 days, of which 34% is accessible on a daily basis. Investment maturities for April were$5,012,712 (cost). These investments yielded an average of 4.86°/x. Investment purchases for April were$4,054,517(cost). These investments yielded an average of 4.81% PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 03/31/99 % 04/30/99 % Treasuries: $499,297 1.66% $499,297 1.71% Agencies: 21,098,659 70.10% 18,749,465 64.26% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 4,036,392 13.41% 4,052,289 13.89% FGIC: 4,457,458 14.81% 5,871,851 20.12% Total $30,096,806 100% $29,177,901 100% The City's average yield on investments was 5.05%and the average 90 day T-Bill yield was 4.38%which is a 67 basis point spread over the benchmark. This equates to approximately$195,492 annually. Total interest received for April was$121,710. Market Activity" A diverse set of economic indicators point to continued growth in the economy. The industrial production index, the index of leading dicators, and the consumer confidence survey all report increases, despite forecasts of an economic slowdown. Consumer confidence -,se for the sixth straight month in April, and reached its highest level since last summer. Consumers do not show any signs of letting up on purchases of goods and service. Economists previously predicted that job growth would be weak in March, but employment rose in most service producing industries. The unemployment rate dropped to 4.2 percent for the month. Low unemployment combined with other factors has pushed up real wages causing them to grow faster than predicted. New housing starts dropped slightly, yet sales continue to remain strong since last year due to a strong economy and low interest rates. The Federal Reserve meets in May. There is a fear that they are leaning towards raising rates. We will continue to watch any moves by the Fed and invest our funds accordingly. Key Rates 30-Apr Year Ago Certificates of Deposit: 3 month 4.54% 5.27% 6 month 4.59% 5.59% Treasury Bill: 91 day 4.34% 4.94% 52 Week 4.50% 5.13% Interest Rate Outlook 06/01/99 08/01/99 11/01/99 Fed Funds 4.80% 4.80% 4.70% 30 day prime bank CD 4.80% 4.80% 4.80% 3 Month T-Bill Yield 4.40% 4.40% 4.40% 'Source: GFOA, "Public Investor,"May 7, 1999 lerrill Lynch, Daily Market Updates irst Southwest, Weekly Market Updates Cash& Debt Department Prepared by: May 31, 1999 Vicki Rodriquez May 1998 1999 Percent of funds invested 103% 101 Consolidated Cash, Operating Account ($646,711) ($396,348) 42% of City funds are available for use within 30 days, of which 33% is accessible on a daily basis. Investment maturities for May were$8,801,936.28 (cost). These investments yielded an average of 5.01%. Investment purchases and dividends reinvested for May were$10,665,523.09(cost). These investments yielded an average of 4.92% PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 04/30/99 % 05/31/99 % Treasuries: $499,297 1.71% $499,297 1.61% Agencies: 18,749,465 64.26% 20,325,064 65.48% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 4,052,289 13.89% 5,673,865 18.28% FGIC: 5,871,851 20.12% 4,538,262 14.62% Total $29,177,901 100% $31,041,488 100% The City's average yield on investments was 4.99%and the average 90 day T-Bill yield was 4.60%which is a 39 basis point spread over the benchmark. This equates to approximately$121,062 annually. Total interest received for May was$155,342. Market Activity` Inflation rose slightly during the month of April, up 0.7 percent in one month. Some economists are predicting that the strong economy will re-ignite inflation, prompting the Fed to raise interest rates later this year. The Fed is awaiting data on employment and inflation before deciding to boost rates. The Federal Reserve Board has elected to leave rates unchanged for now, but has signaled to the market that it will be considering potential rate increases if inflation returns. This caused short-term treasury yields to drop. Despite the indication of a healthy economy, Federal Reserve Chairman Alan Greenspan cautions that the economy is vulnerable to overseas markets and that it could experience a downward shift. He also warns that the labor market conditions can become so tight that the rise in nominal wages may begin to outpace the gains in the labor productivity, and prices will begin to accelerate. Key Rates 28-May Year Ago Certificates of Deposit: 3 month 4.58% 5.25% 6 month 4.75% 5.52% Treasury Bill: 91 day 4.50% 5.02% 52 Week 4.49% 5.43% Interest Rate Outlook 06/01/99 08/01/99 11/01/99 Fed Funds 4.80% 4.80% 4.80% 30 day prime bank CD 4.80% 4.80% 4.90% 3 Month T-Bill Yield 4.60% 4.40% 4.60% 'Source: GFOA, "Public Investor,"June 4, 1999 Merrill Lynch, Daily Market Updates First Southwest, Weekly Market Updates Cash & Debt Department June 30, 1999 Prepared by: Vicki Rodriquez 04L June scent of funds invested 1998 1999 -consolidated Cash, Operating Account 100% 101% $74,790 ($220,209) 29% of City funds are available for use within 30 days, of which 25% is accessible on a daily basis. Investment maturities for June were $7,631,592 (cost). These investments yielded an average of 4.77%. Investment purchases and dividends reinvested for June were $7,497,426(cost). These investments yielded an average of 5.13% 3/o PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 05/_ 31/99 % 06/30/99 Treasuries: Agencies: $499,297 1.61% $499,297 20,325,064 65.48% 1.62% CD's: 5000 22,539,451 72.83% , LOGIC: 0.02% FGIC: 0 0.02% 5,00 5,673,865 18.28% 4,538,262 6,569,00 21.25% Total14.62 $31,041,4880 1,294,562 4.19% 100/o $30,907,321 100% The City's average yield on investments was 5.05% and the average 90 day T-Bill yield was 4.68% which is a 37 basis Point spread over the benchmark. This equates to approximately$114,357 annually. Total interest received for June was $ 125,898. Market Activity* On June 17th, 1999, Federal Reserve Chairman Alan Greenspan testified that despite stable growth during the past three years, economic imbalances could put the economic expansion at risk. For example, inflation has remained low while productivity and ending have soared. These types of imbalances may cause the Fed to raise interest rates. Nevertheless, consumers remained .,-onfident during the month of June. Retail spending and new housing starts both showed gains at the end of May and well into June. Economic reports during the month of June lead the market to believe that the Fed would raise rates late in the month. That is exactly what happened. The Federal Reserve raised rates by 25 basis points at the Federal Open Markets Committee meeting on June 30th. This rate increase was done to help curb a potential rise in inflation. However, traders believe that this increase could lead to more increases this year. Key Rates Certificates of Deposit: 3 month 25-Jun Year Ago 6 month 4.77% 5.23% 94% Treasury Bill: 91 day 4 5.54% 52 Week 4.61% 5.01% 4.89% 5.43% Interest Rate Outlook :'ed Funds 08/01/9910/01/99 0 12/01/99 30 day prime bank CD 5.00/0%0 5.00% 5.00% 0 3 Month T-Bill Yield .20/0 5.40% 5.30% 0 0/0 4.80% 4.70% Source: 3FOA, "Public Investor," July 2, 1999 Aerrill Lynch, Daily Market Updates 7irst Southwest, Weekly Market Updates Prepared by: , Cash & Debt Department Vicki Rodriquez July 31, 1999 July 1998 1999 102% 101% Percent of funds invested ($562,434) ($292,533) Consolidated Cash, Operating Account 34% of City funds are available for use within 30 days, of which 28% is accessible on a ilyof 4.89%. Investment maturities for July were $2,832,736 (cost). These investments yielded an average stment urchases and dividends reinvested for July were$2,428389(cost). These investments yielded an average of 4.89%. Inve P PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 06/30/99 % 07/31/99 297 1.64% $499,297 1.62% $499, 70.69% Treasuries: 22,539,451 72.93% 21,561,715 Agencies: 5,000 0.02/0 0 5,000 0.02%CD's: 6,569,012 21.25% 6,735,597 22.08% LOGIC: 0 1701366 1,294,56 2 4.19/0 100% FGIC: $30,907,321 100% $30,502,975 Total field on investments was 5.06% and the average 90 day T-Bill yield was 4.66%which is a 40 basis point spread The City's average y roximately$122,012 annually. Total interest received for July was $ 118,580. over the benchmark. This equates to app Market ActiviW is ex eriencing a slowdown, the Fed has indicated that it may raise interest rates again to Despite recent indicators that the economy p enspan s made atements to groups that the Fed may prevent a hike in inflation. Federal Reserve Chairman Alan orementts during the first part of 1999 were Imi ed,with the CPI increasing change its neutral bias towards interest rates. Inflation deve p rapidly stated that most Federal Reserve Governors anticipate inflation o .� rap y due to a sharp rebound in energy prices. Mr. Greenspan maintain between 2.25% and 2.5%throughout 1999. ious Economic indicators reflect that the economy may be slowing down. Real a GD decline reveals consumer confidence may s gnalraysoftenq ng in she Retail sales increased very little during the month of June. In ad economic growth path. This is the first time in nine monthsthat n consumer art t mexpectations thatlmortgage�apes will onceease oThensume were purchasing new homes in increased ear low. 25 This P unemployment rate is close to a 29 y is believe that the Fed will raise rates by 25 basis points at taenedeon ou eportfol o!s increase should be the last for 1999. Economis fields e Any move by the Fed would mean an increase in the average y 2-Aug Year Ago Key Rates 3 month 4.87% 5.24% Certificates of Deposit: 5.21% 5.75% 6 month 91 da 4.54% 5.12% Treasury Bill: 52 Week 4.71% 5.26% 11/01/99 02/01/99 09/01/9 5.10% 5.00% Interest Rate Outlook 5.00% o 5.10% 5.10% Fed Funds 5.20% 4.60% 30 day prime bank CD 4.70% 4.60% 3 Month T-Bill Yield *Source: GFOA, "Public Investor,"August 6, 1999 Merrill Lynch, Daily Market Updates First Southwest, Weekly Market Updates r Cosh & Debt Department Prepared by: August 31, 1999 Vicki Rodriquez NDJL August 1998 1999 cent of funds invested 101% 101% consolidated Cash, Operating Account ($165,873) ($168,554) 33% of City funds are available for use within 30 days, of which 25% is accessible on a daily basis. Investment maturities for August were $5,763,852 (cost). These investments yielded an average of 5.02%. Investment purchases and dividends reinvested for August were $4,611,713(cost). These investments yielded an average of 5.38%. PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 07/31/99 % 08/31/99 % Treasuries: $499,297 1.64% $499,297 1.70% Agencies: 21,561,715 70.69% 21,527,329 73.34% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 6,735,597 22.08% 5,510,691 18.78% FGIC: 1,701,366 5.58% 1,808,520 6.16% Total $30,502,975 100% $29,350,836 100% The City's average yield on investments was 5.17% and the average 90 day T-Bill yield was 4.86% which is a 40 basis point spread over the benchmark. This equates to approximately$90,988 annually. Total interest received for August was $ 129,934. Market Activity* As expected, the Federal Reserve raised the Federal Funds rate by 25 basis points at its meeting in August. After this increase, the Fed stated that this increase should diminish the risk of future inflation. Based on this, most investors believe that the Fed will not change rates for the rest of the year. However, there are some analysts that believe that the Fed will raise rates again in October due 'heir focus on indicators of potential future inflation. The cost pressures and labor market shortages in the current economy _ ,itinue to raise concerns about future inflation. The economy has slowed significantly since the fourth quarter of 1998. It was growing at a pace of 6% at the end of 1998. The economy has slowed to a more moderate level of 1.8 percent growth in GDP for the second quarter of 1999. Inflation remains low, despite the tight labor markets and low unemployment. However, the Fed is still concerned with the possibility of future inflation. Over the past month, short term interest rates have increased, while long term rates have declined. Most economists believe that short and mid term rates will continue to increase over the next six months, while long term rates will continue to decrease. This will impact the strategy that we use when investing our portfolio. The majority of available funds will be placed in short to medium term notes in order to pick up the additional yield. Key Rates 27-Aug Year Ago Certificates of Deposit: 3 month 4.98% 5.22% 6 month 5.35% 5.41% Treasury Bill: 91 day 4.85% 4.92% 52 Week 4.95% 5.00% Interest Rate Outlook 10/01/99 12/01/99 03/01/99 Fed Funds 5.20% 5.30% 5.30% 30 day prime bank CD 5.30% 5.40% 5.40% 3 Month T-Bill Yield 4.80% 4.90% 4.90% *Source. GFOA, "Public Investor," September 3, 1999 'Rerrill Lynch, Daily Market Updates st Southwest, Weekly Market Updates } Cash & Debt Department Prepared by: September 30, 1999 Vicki Rodriquez September 1998 1999 Percent of funds invested 100% 105% Consolidated Cash, Operating Account $58,481 ($1,205,074) 35% of City funds are available for use within 30 days, of which 30% is accessible on a daily basis. Investment maturities for September were $4,926,808 (cost). These investments yielded an average of 5.06%. Investment purchases and dividends reinvested for September were $3,935,653(cost). These investments yielded an average of 5.38%. The difference between purchases and maturities is due to debt service payments during the month of September. PORTFOLIO SUMMARY BY INSTRUMENT (at cost) 08/31/99 % 09/30/99 % Treasuries: $499,297 1.70% $499,297 1.76% Agencies: 21,527,329 73.34% 19,486,174 68.62% CD's: 5,000 0.02% 5,000 0.02% LOGIC: 5,510,691 18.78% 6,588,949 23.20% FGIC: 1,808.520 6.16% 1,815,988 6.40% Total $29,350,836 100% $28,395,407 100% The City's average yield on investments was 5.23% and the average 90 day T-Bill yield was 4.80% which is a 43 basis point spread over the benchmark. This equates to approximately$122,100 annually. Total interest received for September was$ 166,866. Market Activity" Economic analysts differ in their assessment of the currrent economy. Some economists believe that the current economy is in a period of strong growth and expect GDP growth in the third quarter to be around 4.3 percent. They also believe that the Fed will raise rates again at their November meeting to prevent any possible inflationary pressures generated by strong economic growth. Other economists believe that the economy is slowing based on mixed signals in recent economic reports. Many economists do not expect any further rate hikes by the Fed before year end. The economy has slowed since the fourth quarter of 1998. It was growing at a pace of 6% at the end of 1998. The economy slowed to a more moderate level of 1.8 percent growth in GDP for the second quarter of 1999. However, many economists consider this to be a statistical dip in the economy's true growth range of around 4 percent. Inflation remains low, despite the tight labor markets and low unemployment. Over the past month, short term interest rates have declined, while long term rates have increased slightly. This may have a slight impact on the strategy that we use when investing our portfolio. However, the majority of the porfolio will remain within the one year range. Key Rates 24-Sep Year Ago Certificates of Deposit: 3 month 5.04% 5.05% 6 month 5.40% 5.19% Treasury Bill: 91 day 4.66% 4.64% 52 Week 5.00% 5.51% Interest Rate Outlook 11/01/99 01/01/00 04/01/00 Fed Funds 5.30% 5.40% 5.30% 30 day prime bank CD 5.40% 5.50% 5.40% 3 Month T-Bill Yield 4.80% 5.00% 4.90% 'Source: GFOA, "Public Investor," October 1999 First Southwest, Weekly Market Updates