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Home My WebLink AboutFY 2008 Annual Investment ReportCITY ANNUA THE1 CITY OF EULESS OF EULESS L INVESTMENT REPORT FISCAL YEAR 2 0 0 7- 0 8 CITY OF EULESS 201 N. Ector Drive Euless, TX 76039 Phone: 817-685-1444 Fax: 817-685-1459 www.euless.org INVESTMENT COMMITTEE MEETING 01/20/09 *Annual Review, FY 08 Introduction I. Portfolio Summary II. Performance Summary III. Interest Income Summary IV. Collateral Review V. Broker Selection Process VI. Summary *Review Investment Policy *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, 2008 *General Discussion and Questions THE C I T Y OF EULESS To Investment Committee Members From Vicki Rodriquez. Director of Finance Date January 20 2009 Subject FY08 Annual Investment Report The City of Euless Investment Policy, revised by the City Council in January 2008, 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 Fiscal Year 2007-08 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 in all aspects including reporting The Annual Investment Report for FY 2008 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 06/30/2008.. changes in market value, the market value at 9/30/08 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. INTRODUCTION This report is written and submitted in accordance with Chapter 2256 of the Texas Government Code entitled the "Public Funds Investment Act", 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 Investment Officers as the responsible managers for the City's investment program. The daily investment procedures are monitored by the City's Finance department and reviewed by the investment officers. This report has been signed by each investment officer as required by the Public Funds Investment Act and the City's investment policy. In compliance with the City's investment policy, the Finance 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 securities allowed by Chapter 2256 of the Texas Government Code entitled the "Public Funds Investment Act"; 2) using delivery vs. payment for all purchases; 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 by the Federal Reserve Bank; 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 payable, debt service, and capital improvement disbursements. The City also utilizes money market funds and local government investment pools to provide daily liquidity needs. The yield or rate of return which the City receives is measured against the 90 day treasury bill yield as set by the investment policy. The information contained in this report will quantitatively and graphically demonstrate the achievement of these City objectives for Fiscal Year 2007-08. 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 may be accomplished by purchasing high quality securities in a laddered structure or utilizing an investment pool (See Appendix E). Furthermore the following purposes are also considered when investing. -Operating Funds willl be structured in such a way as to minimize volatility during economic cycles. This may be accomplished by purchasing high quality short-term securities. The weighted average maturity on these funds will remain within the 6 to 9 month range. These funds include: 101 General Fund 201 Hotel -Motel Tax Fund 202 Juvenile Case Fund 210 1/2 Cent Sales Tax -Operations 220 Crime Control & Prevention District 230 Police Drug - DEA Awards 231 Police Drug - State Awards 240 Car Rental Tax Fund 501 Water & Sewer Fund 510 Drainage Utility 520 Recreation Classes Fund 521 Arbor Daze Fund 530 Softball World -Operations 540 Golf Course Operations 550 Athletic Complex Operations 601 Equipment Replacement Fund 610 Health Insurance Fund 615 Risk Management 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 securities held should not exceed the estimated project completion date. These funds include: 301 Developer's Escrow Fund 305 Streets & Drainage-CIP 310 1/2 Cent Sales Tax-CIP 320 General Capital Projects Fund 321 Redevelopment CIP Fund 325 Police Facility Construction Fund 330 Car Rental CIP 502 Water & Sewer-CIP 505 Water Impact Fees Fund 508 Wastewater Impact Fees Fund 511 Drainage CIP 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 402 Star Center Debt Service 410 1/2 Cent Sales Tax -Debt Service 506 Water/Sewer Debt Service 531 Softball World Debt Service 541 Golf Course Debt Service -Emergency, Contingency, Operating and Debt Service Reserve funds will have the ability to generate a dependable revenue stream to the appropriate fund from securities with a low degree of volatility. Such securities will tend to hold their value during economic cycles. The stated final maturity dates of securities held should not exceed five years (see Appendix E). These funds include: 102 General Fund -Emergency 103 General Fund -Contingency 211 1/2 Cent Sales Tax -Bond Reserve 240 Car Rental Tax Fund (2,000,000 Reserve) 503 Water & Sewer Bond Reserve 507 Water & Sewer -Emergency Fund 512 Drainage Reserve 705 Star Center Bond Reserve Based on the above strategies, the investment portfolio reported herein is in compliance with the city's adopted investment policy. Vicki Rodriquez Director fo Finance Jackie Theriot Assistant Director fo Finance 3 By Instrument' By Months to Maturity! I. PORTFOLIO SUMMARY The City's investment portfolio at the end of the fiscal year, September 30, 2008, is summarized by instrument and by maturity as shown below. Distribution by Instrument of Average Avg. Yield Instrument $ Cost Portfolio Yield Prior Year Agencies 49,840,379 81.80% 3.02% 5.19% Investment Pools 8,256,693 13.55% 2.55% 5.13% Money Market 2,835,726 4.65% 1.80% 4.89% 60,932,798 100.00% This table shows that the majority of City funds, approximately 82% are invested in government agencies, and the remaining 18% in money market funds and local government investment pools. As of the date of this report, the weighted average yield on the portfolio was 2.94%. When compared to prior year's levels, the yield on our portfolio has gone down. The Federal Reserve has cut rates six times since September 2007 for a total of 275 basis points. Distribution by Maturity # of months $ Cost % of Portfolio 1 month $11,092,419 18.2% 3 months 6,374,864 10.5% 3-6 months 6,868,361 11.3% 6-9 months 10,316,070 16.9% 9-12 months 5,500,668 9.0% 12-15 months 4,906,181 8.1% 15-18 months 5,512,000 9.0% 18-24 months 10,362,235 17.0% $60,932,798 100.0% This table reflects the degree of liquidity in the City's portfolio with the ability to access over 18% of the portfolio within 30 days, with an additional 22% available within 6 months. This strategy was followed to meet cashflow requirements for construction projects, payroll, debt service, and other operating expenses. An additional 26% matures within one year. Currently, the city has 17% of the porfolio invested between 12-18 months to take advantage of yields in this area of the curve. The remaining 17% is invested between 18 months and two years. We were able to comply with our investment policy by using emergency funds, escrow funds, bond proceeds, gas bonus money, and excess reserve funds. The weighted average maturity on our portfolio is currently 263.32 days_ • Agencies • Investment Pools • Money Market 4 7/18% 9% 11% 8% 9% 11% 17% ■ 1 month 03 months ■ 3-6 months 06-9 months • 9-12 months 012-15 months ■ 15-18 months 018-24 months Investments at June 30, 2008 Investment Purchases/Dividends Investment Maturities Investments at September 30, 2008 City of Euless Pooled Portfolio Summary for Quarter Ending September 30, 2008 Cost Principal Only $61,604,558.56 24, 389,139.73 (25,060,900.68) $60,932,797.61 Book Value $61,631,476.56 $60,893,230.27 Vicki Rodriquez Director of Finance Jackie Theriot Assistant Director of Finance Market Value $61,625,499.88 $60,894,426.67 Summary of Investments by Fund The following is a summary of cash and investments held by each fund at June 30, 2008 and September 30, 2008. The changes include all investment purchases, maturities, revenues, expenses, and year-end accruals that occurred during the fourth quarter of FY2008. 101 General Fund 102 General Fund -Emergency 103 General Fund -Contingency 201 Hotel -Motel Tax Fund 202 Juvenile Case Fund 210 1/2 Cent -Operations Fund 211 1/2 Cent -Debt Reserve 220 CCPD 230 Police Drug - DEA Awards 231 Police Drug - State Awards 240 Car Rental Tax Fund 301 Developer's Escrow Fund 305 Streets & Drainage-CIP 310 1/2 Cent Sales Tax-CIP 320 General CIP Fund 321 Redevelopment CIP Fund 325 Police Facility CIP 330 Car Rental CIP Fund 401 Debt Service/General 402 Star Center Debt Service 501 Water & Sewer Fund 502 Water & Sewer-CIP 503 Water & Sewer -Bond Reserve 504 Service Center Fund 505 Water Impact Fees 506 Water & Sewer -Debt Service 507 Water & Sewer -Emergency 508 Wastewater Impact Fees 510 Drainage Utility 511 Drainage-CIP 512 Drainage Reserve 520 Recreation Classes Fund 521 Arbor Daze Fund 530 Softball World Operations 531 Softball World CIP 540 Golf Course Operations 541 Golf Course CIP 550 Parks @ Texas Star 552 Athletic Complex CIP 601 Equipment Replacement 610 Health Insurance Fund 615 Risk Management Fund 705 Star Center Reserve Fund TOTAL: Cash & Investment Cash & Investment Increase/ at Market Value at Market Value Decrease 6/30/2008 9/30/2008 In Fund 9,699,702.80 8,106,937.45 500,038.08 499,698.50 500,038.08 501,710.00 182, 718.47 195, 672.63 (19,219.57) 795.40 305,172.58 670,490.94 962,116.63 938,997.98 174,577.99 215,275.53 187, 908.75 188, 973.82 146, 025.39 146, 843.27 5,689,545.35 9,157,506.80 3,467,961.45 1,679,599.25 1,649,085.42 (30,513.83) 3,435,161.97 3,244,764.44 (190,397.53) 5,057,903.05 5,002,916.32 (54,986.73) 1,313,425.79 1,234,939.43 (78,486.36) 543,565.00 520,285.95 (23,279.05) 118,188.34 107,844.32 (10,344.02) 2,906,992.28 1,937,052.52 (969,939.76) 1,824,308.75 845,079.35 (979,229.40) 529,882.81 168,119.21 (361,763.60) 3,378,397.72 4,413,019.82 1,034,622.10 3,947,752.66 2,761,099.59 (1,186,653.07) 423,876.21 426,836.34 2,960.13 165,798.45 128,606.10 (37,192.35) 2,683,341.05 2,706,351.57 23,010.52 233,161.82 3,883.85 (229,277.97) 509,578.85 500,000.00 (9,578.85) 792,190.46 706,496.79 (85,693.67) 511,633.24 399,123.98 (112,509.26) 1,310,905.67 1,293,493.12 239,244.76 231,119.00 351,072.78 322,297.26 35,815.44 36,070.48 98,113.46 118, 626.90 (12,854.25) 2,064.36 645,733.79 544,013.51 1,219,018.07 (28,460.85) 225,950.85 213,156.07 821,233.09 833,587.63 1,179, 855.02 1, 997, 328.46 3,728,892.99 3,696,985.66 1,090,262.37 1,222,636.24 1,956,746.76 1,956,777.03 (1,592,765.35) Operating expenses (339.58) 1,671.92 12,954.16 20,014.97 365,318.36 Sales tax receipts (23,118.65) Transfer to operating -interest 40,697.54 Sales tax receipts 1,065.07 817.88 Car rental receipts Capital outlay Capital outlay Capital outlay Capital outlay Capital outlay Capital outlay Capital outlay Debt Service Payments Debt Service Payments Operating revenue Capital outlay Operating expenses Debt Service Payments TRA Sewer Payment Debt Service Payments (17,412.55) (8,125.76) (28,775.52) Operating expenses 255.04 20, 513.44 14,918.61 (101,720.28) Operating expenses (1,247,478.92) Debt Service Payments (12,794.78) 12, 354.54 817,473.44 Transfer from Golf (31,907.33) Insurance claims accrual 132,373.87 Operating transfers 30.27 61,273,373.05 59,818,102.19 (1,455,270.86) 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 100% for FY08. The monthly data below shows the continued utilization of City funds through investments. Consolidated Invested Percentage Cash Balance Invested October -06 $7,395 $59,031,125 100% November -06 (238,651) 59,808,220 101% December -06 1,151,991 60,384,528 99% January -07 (462,691) 63,837,026 101% February -07 (431,899) 66,905,950 101% March -07 (433,908) 58,983,335 101% April -07 (291,575) 59,854,283 100% May -07 246,063 59,921,560 100% June -07 (117,086) 61,801,852 100% July -07 486,366 61,261,826 100% August -07 (324,752) 62,658,511 100% September -07 (3,100,784) 62,135,488 105% Average (292,461) 61,381,975 101% Consolidated Cash October -07 $645,505 November -07 (304,029) December -07 781,650 January -08 879,365 February -08 (1,667,809) March -08 144,921 April -08 1,008,099 May -08 496,520 June -08 763,657 July -08 305,402 August -08 (232,369) September -08 (315,721) Average 208,766 Invested Balance $59,829,251 61,081,112 62,601,223 68,815,473 69,782,149 59,045,851 59,397,712 60,327,836 61, 765,104 60,830,569 61,720,589 61,086,813 62,190,307 Percentage Invested 99% 101% 99% 99% 103% 100% 99% 100% 99% 100% 101% 101% 100% This graph shows how a greater portion of the City's funds continue to be invested, always in pursuit of 100%. Percent Invested 105.00% 100.00% 95.00% 90.00% 85.00% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year 7 Cash management performance - effectiveness of the cash management program has been measured utilizing actual figures for FY08 as shown below: Average City's Number Estimated 90 day Invested Days in Interest Month TBill Yield Balance Month Earnings October -07 3.82% $59,829,251 31 $194,109 November -07 3.68% $61,081,112 30 $184,749 December -07 3.04% $62,601,223 31 $161,631 January -08 2.72% $68,815,473 31 $158,973 February -08 2.15% $69,782,149 28 $115,093 March -08 1.28% $59,045,851 31 $64,190 April -08 1.31% $59,397,712 30 $63,954 May -08 1.76% $60,327,836 31 $90,178 June -08 1.89% $61,765,104 30 $95,947 July -08 1.66% $60,830,569 31 $85,763 August -08 1.75% $61,720,589 31 $91,735 September -08 1.15% $61,086,813 30 $57,740 Average 2.18% 62,190,307 $113,672 Estimated earnings at benchmark yields: $1,364,063 Actual FY08 interest income (un -audited) $2,453,928 Earnings over benchmark: $1,089,865 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 October -07 3.82% 5.16% 1.34% November -07 3.68% 5.10% 1.42% December -07 3.04% 4.90% 1.86% January -08 2.72% 4.63% 1.91% February -08 2.15% 4.20% 2.05% March -08 1.28% 4.08% 2.80% April -08 1.31% 3.75% 2.44% May -08 1.76% 3.52% 1.76% June -08 1.89% 3.30% 1.41% July -08 1.66% 3.15% 1.49% August -08 1.75% 3.17% 1.42% September -08 1.15% 3.06% 1.91% Average 2.18% 4.00% 1.82% During FY08, the Federal Reserve cut rates six times. The Fed went from a fed funds rate of 4.75% to 4.25% in the first quarter dropping 50 basis points of the fiscal year. In the second quarter it dropped another 200 basis points to 2.25% with an additional 25 basis points drop in the third quarter to 2.00%. Continued slowdowns in the housing market, a drop in consumer confidence, and turmoil in the global financial markets continue to place increasing concerns on the Federal Reserve. The city's portfolio continues to decline, but fortunately it has not declined as rapidly as the fed funds rate. This allowed the city's portfolio to surpass the benchmark rate by an average of 182 basis points for the year. As current investments mature and are reinvested, the city's yield will continue to decline. 8 Interest Income Summary! III. INTEREST INCOME SUMMARY FY04 Audit FY05 Audit FY06 Audit FY07 Audit FY08 Un -audited FY08 Budgeted $694,038 $1,278,310 $2,356,789 $3,055,445 $2,453,928 $2,109,427 Interest Earnings in $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY04 Audit FY05 Audit FY06 Audit FY07 Audit FY08 Un -audited Interest income exceeded the budgeted level for fiscal year 2008. When compared to prior year, interest earnings have decreased. This decrease can be attributed to the federal rate cuts. As the city's investments mature the new securities are now at a lower interest rate which will yield lower interest payments. 9 Interest Income By Fund For Fiscal Year Ending September 2008 # Fund FY 07 FY 07 Actual FY 08 FY 08 Actual Diff FY08 Budget Audited Budget (Unaudited) Bud. -Act. 101 General $405,000 $628,960 $450,000 $488,038 $38,038 201 Hotel/Motel 4,500 6,983 6,250 3,922 ($2,328) 210 Half Cent Sales Tax -Operations 40,000 76,830 60,000 56,520 ($3,480) 211 Half Cent Sales Tax -Reserve 40,000 48,973 47,500 28,155 ($19,345) 220 Crime Control Prevention District 13,500 27,996 22,500 14,226 ($8,274) 230 Euless DEA Fund 6,750 10,309 8,750 5,827 ($2,923) 231 Police State Awards 0 6,733 5,000 4,311 ($689) 240 Car Rental 202,500 503,415 300,000 392,891 $92,891 301 Developer's Escrow 60,000 65,882 62,500 65,003 $2,503 305 Streets CIP 98,611 217,049 75,000 127,630 $52,630 310 Half Cent Sales Tax - CIP 15,750 27,106 15,000 75,190 $60,190 320 G.O. CIP 1,125 1,659 1,500 40,578 $39,078 321 Redevelopment CIP Fund 0 0 20,249 21,524 $1,275 325 Police Facility CIP 1,534 1,534 928 928 ($0) 330 Car Rental CIP 45,000 80,853 50,000 137,159 $87,159 401 GO Debt Service 45,000 61,805 45,000 37,949 ($7,051) 402 Star Centre Debt 13,500 18,405 15,000 13,047 ($1,953) 501 Water and Sewer 225,000 303,261 275,000 201,714 ($73,286) 502 Water and Sewer CIP 103,199 216,700 125,000 150,644 $25,644 503 Water and Sewer Reserve 17,000 24,016 17,500 15,517 ($1,983) 504 Service Center Fund 0 807 0 3,707 $3,707 505 Water Impact Fees 90,000 126,719 100,000 115,013 $15,013 508 Wastewater Impact Fees 45,000 57,018 45,000 31,033 ($13,967) 510 Drainage 27,000 39,025 25,000 27,211 $2,211 511 Drainage Capital Projects 0 50,146 20,000 47,497 $27,497 520 Recreation Classes 10,125 14,351 11,250 8,593 ($2,657) 521 Arbor Daze 4,500 5,250 4,500 2,171 ($2,329) 530 Softball World 9,000 9,225 6,000 3,367 ($2,633) 531 Softball World Debt 0 4,124 0 639 $639 540 Golf Course 13,680 17,388 11,250 18,206 $6,956 541 Golf Course Debt 0 99,701 75,000 61,235 ($13,765) 550 Parks At Texas Star 6,750 10,285 7,500 6,380 ($1,120) 552 Athletic Complex Phase II - CIP 0 45,848 38,750 33,458 ($5,292) 601 Equipment Replacement 27,000 71,703 50,000 43,076 ($6,924) 610 Health Insurance 27,000 129,071 75,000 138,982 $63,982 615 Risk MGMT/Worker's Comp 27,000 46,314 37,500 32,586 ($4,914) Total $1,625,024 $3,055,445 $2,109,427 $2,453,928 $344,501 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 un -audited interest earnings for the end of the fiscal year exceeded budgeted expectations. 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, Grant Funds, and Debt Service Funds. 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). City of Euless Collateral Analysis for Cash & C.D. Investments as of 09/30/08 Pledging Institution First Nat'l Bank Mid -Cities Frost Bank Safekeeping Pledged Sec. Security Market Value Location Description Par Value (w/FDIC Ins.) Produced By: Director of Finance FDIC FDIC $0 $100,000 Payroll Operating Insurance Federal Reserve Bank FHLMC 4/1/2018 Reviewed by: Assistant Director of Finance N -irk $4,021,505 $4,377,162 Payroll $4,021,505 Operating Insurance bti/rvuert, Inv. Value Difference Mat'y (P & I) Over/(Under) $30,992 $767 $30,156 $70 $185,527 $75,232 $95,593 $14,701 $45,863 $4,673,992 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, and additions/deletions are made as necessary. The city currently maintains a list of seven broker/dealers. 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 management to review including references, capital adequacy ratios, etc. 3. The Finance Department reviews all received questionnaires, summarizes the information and recommends the desired list of brokers with explanatory notes in conjunction with the first quarter investment report. 4. The list is presented to the investment committee annually for their approval. 5. All brokers are notified after the selection is complete. VI. SUMMARY The primary objectives 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. The investment committee met on January 20, 2009 and reviewed the presented data for transmittal to the City Council. Vicki Rodriquez Jackie Theriot Director of Finance Assistant Director of Finance 12 Members: Minutes - 10/1/08 Investment Committee Meeting Gary McKamie, City Manager Loretta Getchell, Deputy City Manager Vicki Rodriquez, Director of Finance Bill Ridgway, Director of Economic Development Mary Lib Saleh, Mayor Committee members present included, Mayor Saleh, Gary McKamie, Loretta Getchell, Bill Ridgway and Vicki Rodriquez. Vicki Rodriquez presented the third quarter investment report to the committee. The committee reviewed the report. Vicki reported that 18% of the city's portfolio is invested in local government investment pools and money market funds, providing the city with the liquidity they need to meet cash flow requirements. Vicki reported that the market value of the portfolio at the end of the third quarter totaled $61,625,500 and a book value of $61,631,477. Vicki also reported that the weighted average yield on the portfolio at the end of June was 3.06%, which was a decrease of over 200 basis points from the previous quarter. The weighted average maturity at the end of the quarter was 260 days. The city remains 100% invested. The minutes from the June 26, 2008 meeting were presented for approval. Mayor Saleh motioned to approve the minutes, Loretta Getchell seconded. The minutes were approved. Bill Ridgway motioned to approve the third quarter report as presented, Loretta Getchell seconded. The motion passed. In light of current market conditions and the impact on financial institutions, the committee held a conference call with Scott McIntyre and Greg Warner from First Southwest Asset Management to get their thoughts on current market conditions and some suggestions on investment strategies going forward. From their perspective, they stated that government agency paper is still a good investment option. They recommended that we purchase investments with maturities of 180 days or less. They also suggested keeping callable securities at no more than 20-25% of our total portfolio. Scott did not recommend that we shift our focus to treasury bills or notes. He stated that we would be giving up too much yield. Scott and Greg stated that our main objective should be diversification of the portfolio both by investment type and investment maturity. They also believed that the City might benefit from adding another local government investment pool to provide more liquidity and diversification due to the uncertainty in the markets. The committee decided to check into an additional investment pool. In addition, the number one focus of the portfolio will continue to be protection of the City's assets and liquidity. Therefore, our strategy will be to continue to keep investments short (less than 18 months) and continue to ladder the portfolio to provide adequate cash flow. The committee also suggested that we look into the possibility of placing some funds in CD's through the CDAR's program. The finance department will research this program. The committee also suggested placing a small portion of the portfolio in treasuries, if the opportunity seemed beneficial. The committee also suggested that we continue with our investments in government agencies, as we still believe they are a safe investment options for the City's funds. The most important objective going forward will be safety and liquidity of the City's funds. Gary McKamie motioned to adjourned the committee meeting. Mayor Saleh seconded. Meeting was adjourned. 13 APPENDIX City of Euless Investment Portfolio September 30, 2008 **Market Prices Provided by Coastal Securities Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks LOGIC Local Gov't Investment Coop. FSW First Southwest FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities FGIC Financial Investors Test Merrill Merrill Lynch Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Texpool TEXPOOL Duncan Duncan Williams UBS UBS Financial Services Inv. Cusip Purchase Maturity Call Term Days Price Par Principal Next Int Interest Yield To Coupon Seller Unamortized Book Market Market Do Number Date Date Date Jin days) Accrued Per 100 Value Invested Iryinent Accrued Maturity Rate Inst. Discount Premium Prem/(Disc) Value Price Value U.S. Government Agencies Agency Discounts FNMADN 313588N92 01/04/08 11/10/08 NIC 306 266 96.9505 1,000,000.00 969,504.72 30,495.28 26,508.97 3.67% Merrill 996,013.69 99.639387 996,393.87 FNMADN 313589BF9 02/08/08 01/30/09 WC 352 232 97.7291 1,000,000.00 977,290.83 22,709.17 14,967.41 2.37% Merrill 992,258.24 98.917866 989,178.66 FNMADN 313589DT7 06/23/08 03/31/09 n/c 277 97 97.8925 500,000.00 489,462.50 10,537.50 3,690.03 2.78% Merrill 493,152.53 98.360515 491,802.58 2,500,000.00 2,436,258.06 63,741.95 45,166.40 2.9418% 2,481,424.45 2,477,375.11 Agency Coupon Notes FHLB 3133XDJG7 01/11/08 10/14/08 N/C 180 166 100.6510 500,000.00 503,255.00 11,250.00 10,375.00 3.62% 4.500% Merrill 3,255.00 - 500,000.00 100.042040 500,210.20 FHLMC 3134A2W5 02/07/08 10/15/08 N/C 180 165 101.6800 875,000.00 889,700.00 22,421.88 20,553.39 2.64% 5.125% Vining 14,700.00 - 875,000.00 100.069195 875,605.46 FHLB 3133XBJP1 02/04/08 10/17/08 N/C 180 163 101.3570 1,000,000.00 1,013,570.00 22,850.00 20,691.94 2.60% 4.570% Vining 13,570.00 - 1,000,000.00 100.054843 1,000,548.43 FHLB 3133X5YQ5 01/14/08 10/20/08 N/C 180 160 99.8839 500,000.00 499,419.50 8,250.00 7,333.33 3.45% 3.300% Duncan 580.50 - 500,000.00 99.999238 499,996.19 FNMA 31398AAF9 06/08/07 11/03/08 N/C 180 147 99.5270 500,000.00 497,634.80 12,250.00 10,004.17 5.25% 4.900% UBS 2,365.20 (139.13) 499,860.87 100.135688 500,678.44 FHLMC 3128X16N2 01/17/08 11/10/08 N/C 180 140 100.3750 1,000,000.00 1,003,750.00 19,375.00 15,069.44 3.40% 3.875% Vining 3,750.00 375.00 1,000,375.00 100.056389 1,000,563.89 FHLMC 3128X2BP9 12/17/07 11/20/08 N/C 180 130 99.8030 1,000,000.00 998,030.00 19,700.00 14,227.78 4.16% 3.940% FSW 1,970.00 (179.09) 999,820.91 100.079967 1,000,799.67 FHLB 3133XSDJ4 09/26/08 01/14/09 108 4 100.0000 500,000.00 500,000.00 4,875.00 180.56 3.25% 3.250% Coastal 500,000.00 100.044000 500,220.00 FNMA 31359MTZ6 08/15/08 02/15/09 N/C 180 45 100.2670 500,000.00 501,335.00 8,125.00 2,031.25 2.71% 3.250% Samco 1,335.00 890.00 500,890.00 100.327000 501,635.00 FMAC 3137EAAA7 05/25/07 02/17/09 N/C 180 43 99.7668 1,000,000.00 997,667.89 24,375.00 5,822.92 5.01% 4.875% UBS 2,332.11 (444.20) 999,555.80 100.587416 1,005,874.16 FFCB 31331YUS7 02/19/08 02/19/09 N/C 180 41 100.0000 1,000,000.00 1,000,000.00 11,875.00 2,704.86 2.38% 2.375% FSW 1,000,000.00 99.653478 996,534.78 FNMA 3136F5DZ1 07/14/08 03/03/09 N/C 180 27 100.5200 1,000,000.00 1,005,200.00 18,000.00 2,700.00 2.77% 3.600% Vining 5,200.00 3,250.00 1,003,250.00 100.095477 1,000,954.77 FNMA 3136F5DZ1 07/23/08 03/03/09 N/C 180 27 100.4730 500,000.00 502,365.00 9,000.00 1,350.00 2.81% 3.600% Vining 2,365.00 1,478.10 501,478.10 100.095477 500,477.39 FFCB 31331XSL7 03/12/07 03/12/09 N/C 180 18 100.0000 525,000.00 525,000.00 12,600.00 1,260.00 4.80% 4.800% MERRILL 525,000.00 100.630160 528,308.34 FHLB 3133XEN96 05/22/08 03/13/09 N/C 180 17 101.9802 500,000.00 509,901.20 11,875.00 1,121.53 2.26% 4.750% Coastal 9,901.20 4,950.60 504,950.60 100.612087 503,060.44 FHLB 3133XQJB9 05/22/08 03/27/09 N/C 180 3 99.8861 350,000.00 349,601.27 3,718.75 61.98 2.26% 2.125% Coastal 398.73 (398.73) 349,601.27 99.405001 347,917.50 FHLB 3133X56B9 06/19/08 03/30/09 N/C 180 0 100.3870 1,000,000.00 1,003,870.00 16,600.00 0.00 2.81% 3.320% Vining 3,870.00 2,150.00 1,002,150.00 99.979675 999,796.75 FNMA 3136F5MG3 08/15/08 03/30/09 N/C 180 0 100.4000 1,000,000.00 1,004,000.00 16,550.00 0.00 2.66% 3.310% Samco 4,000.00 2,857.15 1,002,857.15 100.063000 1,000,630.00 FHLB 3133X5MD7 04/16/08 04/21/09 N/C 180 159 101.6430 250,000.00 254,107.50 5,000.00 4,416.67 2.35% 4.000% Vining 4,107.50 2,053.74 252,053.74 100.347024 250,867.56 FHLB 3133XMP96 10/24/07 04/24/09 10/24/08 180 156 100.0000 500,000.00 500,000.00 12,000.00 10,400.00 4.80% 4.800% Samco 500,000.00 100.139694 500,698.47 FFCB 31315PGW3 04/25/08 04/24/09 N/C 179 155 100.0000 1,000,000.00 1,000,000.00 11,436.11 9,902.78 2.30% 2.300% FSW 1,000,000.00 99.411032 994,110.32 FHLMC 3128X1X28 02/11/08 04/27/09 N/C 180 153 102.7184 50,000.00 51,359.19 1,250.00 1,062.50 2.70% 5.000% Coastal 1,359.19 582.54 50,582.54 100.918544 50,459.27 FHLB 3133M8JE5 04/23/08 04/27/09 N/C 180 153 103.3152 500,000.00 516,576.13 14,475.00 12,303.75 2.45% 5.790% FSW 16,576.12 8,288.04 508,288.04 101.362187 506,810.94 FHLB 3133XR4T4 05/05/08 05/05/09 N/C 180 145 100.0000 500,000.00 500,000.00 5,937.50 4,782.99 2.38% 2.375% FSW 500,000.00 99.356750 496,783.75 D FHLB 3133XQZA3 06/11/08 05/07/09 N/C 180 143 99.7734 1,000,000.00 997,734.22 12,400.00 9,851.11 2.73% 2.480% Coastal 2,265.78 (1,441.86) 998,558.14 99.391387 993,913.87 F, FHLB 3133XRDY3 06/10/08 05/28/09 N/C 180 122 99.8099 500,000.00 499,049.50 6,250.00 4,236.11 2.70% 2.500% Duncan 950.50 (604.87) 499,395.13 99.368468 496,842.34 FHLB 3133X9JS0 12/14/07 06/08/09 N/C 180 112 100.0700 500,000.00 500,350.00 10,000.00 6,222.22 3.95% 4.000% Vining 350.00 350.00 500,350.00 100.353121 501,765.61 FHLMC 3128X7TV6 05/16/08 06/12/09 11/16/08 180 134 100.0000 500,000.00 500,000.00 6,562.50 4,885.42 2.63% 2.625% FSW 500,000.00 99.470796 497,353.98 FHLB 3133XRHD5 06/16/08 06/16/09 N/C 180 104 100.0500 500,000.00 500,250.00 6,750.00 3,900.00 2.65% 2.700% Samco 250.00 250.00 500,250.00 99.463837 497,319.19 FHLB 3133XRLA6 06/16/08 06/16/09 N/C 180 104 99.8582 500,000.00 499,291.00 7,187.50 4,152.78 3.02% 2.875% Duncan 709.00 (472.64) 499,527.36 99.585065 497,925.33 FHLB 3133XRBX7 05/23/08 06/17/09 N/C 207 130 100.0890 500,000.00 500,445.00 7,475.00 4,694.44 2.51% 2.600% Samco 445.00 445.00 500,445.00 99.390808 496,954.04 FHLB 3133XRMS6 06/18/08 06/17/09 N/C 180 103 99.9150 500,000.00 499,575.00 7,500.00 4,291.67 3.09% 3.000% FSW 425.00 (425.00) 499,575.00 99.670385 498,351.93 FHLB 3133XRJZ4 06/18/08 06/18/09 N/C 180 102 100.0000 500,000.00 500,000.00 7,500.00 4,250.00 3.00% 3.000% FSW 500,000.00 99.669150 498,345.75 FHLB 3133XREU0 06/03/08 06/30/09 N/C 390 120 100.0800 1,000,000.00 1,000,800.00 29,250.00 9,000.00 2.62% 2.700% Samco 800.00 533.36 1,000,533.36 99.406323 994,063.23 FHLB 3133XREU0 06/06/08 06/30/09 N/C 390 120 100.0714 500,000.00 500,357.01 14,625.00 4,500.00 2.63% 2.700% Coastal 357.01 357.01 500,357.01 99.406323 497,031.62 FHLB 3133XRJB7 06/30/08 06/30/09 12/30/08 180 90 100.0000 1,000,000.00 1,000,000.00 14,500.00 7,250.00 2.90% 2.900% FSW 1,000,000.00 99.627702 996,277.02 FHLB 3133XRVT4 07/28/08 07/28/09 N/C 180 62 100.0000 500,000.00 500,000.00 7,500.00 2,583.33 3.00% 3.000% Duncan 500,000.00 100.069195 500,345.98 FHLB 3133XPM84 02/07/08 08/07/09 08/07/08 180 53 100.0000 500,000.00 500,000.00 7,125.00 2,097.92 2.85% 2.850% Duncan 500,000.00 99.323359 496,616.80 FHLB 3133XPP73 02/14/08 08/14/09 08/14108 180 46 100.0000 1,000,000.00 1,000,000.00 14,000.00 3,577.78 2.80% 2.800% Duncan 1,000,000.00 99.266043 992,660.43 FHLB 3133XS4P0 08/27/08 08/27/09 N/C 180 33 100.0000 500,000.00 500,000.00 7,500.00 1,375.00 3.00% 3.000% Samco 500,000.00 99.863000 499,315.00 FHLB 3133XSCS5 09/29/08 09/29/09 180 1 99.9022 500,000.00 499,511.00 7,500.00 41.67 3.10% 3.000% Duncan 489.00 (489.00) 499,511.00 99.857700 499,288.50 FHLB 3133XQSQ6 04/21/08 10/21/09 10/21/08 180 159 100.0000 500,000.00 500,000.00 6,375.00 5,631.25 2.55% 2.550% Duncan 500,000.00 100.083143 500,415.72 FHLB 3133X8XJ6 12/14/07 10/27/09 N/C 180 153 100.1740 500,000.00 500,870.00 10,000.00 8,500.00 3.90% 4.000% Vining 870.00 474.48 500,474.48 101.087880 505,439.40 FHLB 3133XR2S8 05/05/08 11/05/09 05/05/09 180 145 100.0000 500,000.00 500,000.00 7,500.00 6,041.67 3.00% 3.000% Duncan 500,000.00 100.726067 503,630.34 FHLB 3133XR6N5 05/12/08 11/12/09 05/12/09 180 138 100.0000 500,000.00 500,000.00 6,875.00 5,270.83 2.75% 2.750% FSW 500,000.00 100.590096 502,950.48 FHLB 3133XRAE0 05/19/08 11/19/09 05/19/09 180 131 100.0000 500,000.00 500,000.00 6,750.00 4,912.50 2.70% 2.700% Coastal 500,000.00 100.569977 502,849.89 FHLB 3133XRAE0 05/19/08 11/19/09 05/19/09 180 131 100.0000 500,000.00 500,000.00 6,750.00 4,912.50 2.70% 2.700% Duncan 500,000.00 100.569977 502,849.89 FFCB 31331YQ86 05/20/08 11/20/09 N/C 180 130 99.9854 500,000.00 499,927.00 6,875.00 4,965.28 2.76% 2.750% Duncan 73.00 (73.00) 499,927.00 100.198553 500,992.77 FHLB 3133X9MF4 08/22/08 11/30/09 N/C 180 120 101.3460 400,000.00 405,384.00 8,200.00 5,466.67 3.01% 4.100% Vining 5,384.00 4,666.09 404,666.09 101.291539 405,166.16 FFCB 31331YGC8 12/10/07 12/10/09 12110/08 180 110 100.0000 1,000,000.00 1,000,000.00 21,000.00 12,833.33 4.20% 4.200% Coastal 1,000,000.00 100.308766 1,003,087.66 FNMA 3136F6TK5 05/22/08 01/19/10 N/C 180 71 102.4500 500,000.00 512,250.00 10,625.00 4,190.97 2.73% 4.250% Vining 12,250.00 9,187.50 509,187.50 101.501522 507,507.61 FFCB 31331Y3S7 07/30/08 01/21/10 N/C 180 69 99.9500 500,000.00 499,750.00 7,625.00 2,922.92 3.08% 3.050% FSW 250.00 (250.00) 499,750.00 99.899000 499,495.00 FHLB 3133XRUY4 07/29/08 01/29/10 1/29/09 180 61 100.0000 500,000.00 500,000.00 8,125.00 2,753.47 3.25% 3.250% Duncan 500,000.00 99.939700 499,698.50 FHLB 3133XPFD1 02/04/08 02/04/10 1/04/08 180 56 100.0000 1,000,000.00 1,000,000.00 15,000.00 4,666.67 3.00% 3.000% Coastal 1,000,000.00 100.176045 1,001,760.45 FHLB 3133XPHN7 02/04/08 02/04/10 2/04/09 180 56 100.0000 1,000,000.00 1,000,000.00 15,000.00 4,666.67 3.00% 3.000% Samco 1,000,000.00 100.567002 1,005,670.02 FHLMC 3128X6W51 02/12/08 02/12/10 8/12/08 180 48 100.0000 500,000.00 500,000.00 7,625.00 2,033.33 3.05% 3.050% Samco 500,000.00 99.984468 499,922.34 FHLB 3133XRXY1 08/19/08 02/19/10 2/19/09 180 41 100.0000 500,000.00 500,000.00 8,125.00 1,850.69 3.25% 3.250% Duncan 500,000.00 99.940700 499,703.50 FHLB 3133XRXY1 08/19/08 02/19/10 2119/09 180 41 100.0000 500,000.00 500,000.00 8,125.00 1,850.69 3.25% 3.250% Coastal 500,000.00 99.940700 499,703.50 FHLB 3133XS5G9 09/12/08 03/12/10 3/12/09 180 18 100.0000 500,000.00 500,000.00 8,000.00 800.00 3.20% 3.200% FSW 500,000.00 99.833000 499,165.00 FNMA 3136F9ET6 04/14/08 04/01/10 4/01/09 180 179 100.0000 500,000.00 500,000.00 6,562.50 6,526.04 2.62% 2.625% Samco 500,000.00 100.459249 502,296.25 FNMA 3136F9HB2 04/21/08 04/21/10 4121/09 180 159 100.0000 500,000.00 500,000.00 6,875.00 6,072.92 2.75% 2.750% Coastal 500,000.00 100.559676 502,798.38 FNMA 31398APZ9 04/28/08 04/28/10 4/28/09 180 152 100.0000 500,000.00 500,000.00 6,750.00 5,700.00 2.70% 2.700% Samco 500,000.00 100.544503 502,722.52 FNMA 3136F9LP6 04/28/08 04/28/10 4/28/09 180 152 100.0000 1,000,000.00 1,000,000.00 15,000.00 12,666.67 3.00% 3.000% Vining 1,000,000.00 100.715396 1,007,153.96 FHLB 3133XQW40 04/29/08 04/29/10 4/29/09 180 151 100.0000 500,000.00 500,000.00 7,500.00 6,291.67 3.00% 3.000% Coastal 500,000.00 100.717982 503,589.91 FHLB 3133XRWG1 08/11/08 05/11/10 5/11/09 90 49 100.0000 500,000.00 500,000.00 4,500.00 2,450.00 3.60% 3.600% FSW 500,000.00 100.208000 501,040.00 FNMA 3136F9NX7 05/12/08 05/12/10 5/12/09 180 138 100.0000 1,000,000.00 1,000,000.00 16,500.00 12,650.00 3.30% 3.300% Samco 1,000,000.00 99.367475 993,674.75 FHLB 3133XRYL8 08/19/08 05/19/10 2/19/09 180 41 100.0000 500,000.00 500,000.00 8,437.50 1,921.88 3.38% 3.375% Coastal 500,000.00 100.011000 500,055.00 City of Euless Investment Portfolio September 30, 2008 **Market Prices Provided by Coastal Securities Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks LOGIC Local Gov't Investment Coop. FSW First Southwest FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities FGIC Financial Investors Test Merrill Merrill Lynch Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Texpool TEXPOOL Duncan Duncan Williams UBS UBS Financial Services Inv. Cusip Purchase Maturity Call Term Days Price Par Principal Next Int Interest Yield To Coupon Seller Unamortized Book Market Market Do Number Date Date Date Jin days) Accrued Per 100 Value Invested lzyrnent Accrued Maturity Rate Inst. Discount Premium Prem/(Disc) Value Price Value FNMA 3136F9PX5 05/28/08 05/28/10 05/28/09 180 122 100.0000 500,000.00 500,000.00 7,500.00 5,083.33 3.00% 3.000% FSW 500,000.00 98.857579 494,287.90 FHLB 3133XS2F4 09/09/08 06/09/10 06/09/09 90 21 100.0000 1,000,000.00 1,000,000.00 8,125.00 1,895.83 3.25% 3.250% Coastal 1,000,000.00 100.069195 1,000,691.95 FNMA 3136F9RN5 08/25/08 06/10/10 09/10/08 180 110 99.9375 500,000.00 499,687.50 8,437.50 5,156.25 3.41% 3.375% Vining 312.50 (312.50) 499,687.50 100.348356 501,741.78 FHLB 3133XR2Y5 06/11/08 06/11/10 N/C 222 151 99.7813 500,000.00 498,906.25 9,250.00 6,291.67 3.11% 3.000% Merrill 1,093.75 (911.40) 499,088.60 99.635029 498,175.15 FNMA 3136F9WD1 06/30/08 06/30/10 06/30/09 180 90 100.0000 500,000.00 500,000.00 9,687.50 4,843.75 3.88% 3.875% Samco 500,000.00 99.949348 499,746.74 FHLB 31339Y4L3 03/13/08 07/16/10 N/C 180 74 105.4031 345,000.00 363,640.67 8,625.00 3,545.83 2.61% 5.000% FSW 18,640.67 13,980.54 358,980.54 102.981987 355,287.86 FHLB 3133XRWC0 07/30/08 07/30/10 07/30/09 180 60 100.0000 500,000.00 500,000.00 9,125.00 3,041.67 3.65% 3.650% Coastal 500,000.00 100.342000 501,710.00 FFCB 31331Y5M8 08/18/08 08/18/10 02/18/09 180 42 100.0000 500,000.00 500,000.00 8,925.00 2,082.50 3.57% 3.570% FSW 500,000.00 100.122000 500,610.00 FHLB 3133XS5F1 09/10/08 09/10/10 09/10/09 180 20 100.0000 500,000.00 500,000.00 8,437.50 937.50 3.38% 3.375% Coastal 500,000.00 100.093000 500,465.00 FHLMC 3128X7W67 09/16/08 09/16/10 09/16/09 180 14 100.0000 500,000.00 500,000.00 9,062.50 704.86 3.63% 3.625% Samco 500,000.00 100.133000 500,665.00 TOTAL: 47,295,000.00 47,404,120.61 805,289.24 407,398.07 3.0933% 14,215.07 123,335.69 50,977.73 47,345,977.73 47,324,632.62 Investment Pools LOGIC N/A N/A N/A N/A N/A 100.0000 69.41 69.41 WA WA 2.6931% LOGIC 69.41 100.0000 69.41 Texpool WA WA N/A N/A WA 100.0000 8,256,623.96 8,256,623.96 WA WA 2.4068% Texpool 8,256,623.96 100.0000 8,256,623.96 FGIC N/A N/A WA WA N/A 100.0000 2,835,725.57 2,835,725.57 WA WA 1.8000% FGIC 2,835,725.57 100.0000 2,835,725.57 TOTAL. 11,092,418.94 11,092,418.94 2.3000% 0.00 0.00 0.00 11,092,418.94 11,092,418.94 TOTAL PORTFOLIO 60,887,418.94 60,932,797.61 869,031.18 452,564.47 14,215.07 123,335.69 50,977.73 60,919,821.13 60,894,426.67 City of Euless Investment Portfolio June 30, 2008 **Market Prices Provided by Coastal Securities Inv. Cusip Maturity Call Term Days Price Par Principal Next Int Interest Yield To Coupon Seller Unamortized Book Market Type Number Date Date (in daysl Accrued Per $100 Value Invested Payment Accrued Maturity Rate Inst. Prem/(Disc) Value Value U.S. Government Agencies Agency Discounts FHLMCDI` 313396D83 08/29/08 N/C 215 156 98.5588 1,000,000.00 985,587.78 14,412.22 10,457.24 2.450% Coastal 996,045.02 996,318.02 FNMADN 313588N92 11/10/08 N/C 306 176 96.9505 1,000,000.00 969,504.72 30,495.28 17,539.77 3.674% Merrill 987,044.49 990,895.62 FNMADN 313589BF9 01/30/09 N/C 352 142 97.7291 1,000,000.00 977,290.83 22,709.17 9,161.08 2.369% Merrill 986,451.92 985,049.66 FNMADN 313589DT7 03/31/09 n/c 277 7 97.8925 500,000.00 489,462.50 10,537.50 266.29 2.783% Merrill 489,728.79 490,050.00 Subtotal 3,500,000.00 3,421,845.83 78,154.17 37,424.38 2.819% 3,459,270.22 3,462,313.30 Agency Coupon Notes FHLB 3133XPF82 07/01/08 N/C 150 149 100.0000 1,000,000.00 1,000,000.00 11,875.00 11,795.83 2.850% 2.850% FSW 1,000,000.00 1,000,021.51 FHLB 3133XPK29 07/08/08 N/C 152 144 100.0000 500,000.00 500,000.00 5,700.00 5,400.00 2.700% 2.700% Duncan 500,000.00 500,060.88 FMAC 3128X1QW0 07/14/08 N/C 180 166 95.7650 200,000.00 191,530.00 3,000.00 2,766.67 5.400% 3.000% COASTAL 200,000.00 200,066.41 FHLB 3133X8R61 07/15/08 N/C 90 75 98.8610 300,000.00 296,583.00 3,112.50 2,593.75 5.100% 4.150% VINING 300,000.00 300,242.57 FFCB 31315PNA3 07/29/08 N/C 180 151 99.9702 1,000,000.00 999,702.01 21,250.00 17,826.39 4.290% 4.250% Coastal (297.99) 999,702.01 1,001,678.83 FHLB 3133XPEW0 08/01/08 N/C 180 149 100.0000 1,000,000.00 1,000,000.00 14,000.00 11,588.89 2.800% 2.800% FSW 1,000,000.00 1,000,491.94 FHLB 3133X0LJ6 08/15/08 N/C 180 135 99.7911 500,000.00 498,955.43 9,375.00 7,031.25 4.080% 3.750% Coastal (130.57) 499,869.43 500,936.14 FHLB 3133XPQW7 08/15/08 N/C 180 135 100.0000 1,000,000.00 1,000,000.00 12,750.00 9,562.50 2.550% 2.550% FSW 1,000,000.00 1,000,421.57 FHLB 3133XEZP7 09/12/08 N/C 180 108 100.4156 200,000.00 200,831.20 5,000.00 3,000.00 4.402% 5.000% FSW 184.70 200,184.70 201,093.35 FHLB 3133XASR9 09/15/08 N/C 180 105 98.5300 250,000.00 246,325.00 5,000.00 2,916.67 5.080% 4.000% VINING (432.36) 249,567.64 250,916.35 FNMA 31359MTF0 09/15/08 N/C 180 105 99.5890 250,000.00 248,972.50 4,687.50 2,734.38 4.250% 3.750% Samco (205.50) 249,794.50 250,789.27 FNMA 31359MTF0 09/15/08 N/C 180 105 100.0000 1,000,000.00 1,000,000.00 18,750.00 10,937.50 3.744% 3.750% Samco 1,000,000.00 1,003,157.07 FHLB 3133X13V7 09/30/08 N/C 180 90 98.7216 125,000.00 123,402.00 2,656.25 1,328.13 5.170% 4.250% Duncan (188.00) 124,812.00 125,628.08 FHLB 3133XDJG7 10/14/08 N/C 180 76 100.6510 500,000.00 503,255.00 11,250.00 4,750.00 3.615% 4.500% Merrill 1,085.01 501,085.01 502,958.97 FHLMC 3134A2UJ5 10/15/08 N/C 180 75 101.6800 875,000.00 889,700.00 22,421.88 9,342.45 2.642% 5.125% Vining 5,512.50 880,512.50 881,789.95 FHLB 3133XBJP1 10/17/08 N/C 180 73 101.3570 1,000,000.00 1,013,570.00 22,850.00 9,266.94 2.604% 4.570% Vining 5,088.75 1,005,088.75 1,006,295.38 FHLB 3133X5YQ5 10/20/08 N/C 180 70 99.8839 500,000.00 499,419.50 8,250.00 3,208.33 3.450% 3.300% Duncan (193.50) 499,806.50 501,337.72 FNMA 31398AAF9 11/03/08 N/C 180 57 99.5270 500,000.00 497,634.80 12,250.00 3,879.17 5.250% 4.900% UBS (556.52) 499,443.48 503,984.41 FHLMC 3128X16N2 11/10/08 N/C 180 50 100.3750 1,000,000.00 1,003,750.00 19,375.00 5,381.94 3.399% 3.875% Vining 1,500.00 1,001,500.00 1,004,803.20 FHLMC 3128X2BP9 11/20/08 N/C 180 40 99.8030 1,000,000.00 998,030.00 19,700.00 4,377.78 4.156% 3.940% FSW (716.36) 999,283.64 1,005,430.15 FHLB 3133XP5G5 01/16/09 07/16/08 178 162 100.0000 1,000,000.00 1,000,000.00 17,305.56 15,750.00 3.500% 3.500% Samco 1,000,000.00 1,000,417.85 FHLB 3133XPAN4 01/29/09 07/29/08 180 151 100.0000 500,000.00 500,000.00 7,625.00 6,396.53 3.050% 3.050% Duncan 500,000.00 500,217.38 FMAC 3137EAAA7 02/17/09 N/C 180 133 99.7668 1,000,000.00 997,667.89 24,375.00 18,010.42 5.010% 4.875% UBS (777.35) 999,222.65 1,014,351.57 FFCB 31331YUS7 02/19/09 N/C 180 131 100.0000 1,000,000.00 1,000,000.00 11,875.00 8,642.36 2.375% 2.375% FSW 1,000,000.00 998,884.93 FFCB 31331XSL7 03/12/09 N/C 180 108 100.0000 525,000.00 525,000.00 12,600.00 7,560.00 4.800% 4.800% MERRILL 525,000.00 532,763.65 FHLB 3133XEN96 03/13/09 N/C 180 107 101.9802 500,000.00 509,901.20 11,875.00 7,059.03 2.260% 4.750% Coastal 7,920.96 507,920.96 507,250.00 FHLB 3133XQJB9 03/27/09 N/C 180 93 99.8861 350,000.00 349,601.27 3,718.75 1,921.35 2.260% 2.125% Coastal (398.73) 349,601.27 349,125.00 FHLB 3133X56B9 03/30/09 N/C 180 90 100.3870 1,000,000.00 1,003,870.00 16,600.00 8,300.00 2.812% 3.320% Vining 3,440.00 1,003,440.00 1,004,971.52 FHLB 3133X5MD7 04/21/09 N/C 180 69 101.6430 250,000.00 254,107.50 5,000.00 1,916.67 2.350% 4.000% Vining 3,080.61 253,080.61 252,610.90 FHLB 3133XMP96 04/24/09 10/24/08 180 66 100.0000 500,000.00 500,000.00 12,000.00 4,400.00 4.800% 4.800% Samco 500,000.00 503,390.10 FFCB 31315PGW3 04/24/09 N/C 179 65 100.0000 1,000,000.00 1,000,000.00 11,436.11 4,152.78 2.300% 2.300% FSW 1,000,000.00 997,000.00 FHLMC 3128X1X28 04/27/09 N/C 180 63 102.7184 50,000.00 51,359.19 1,250.00 437.50 2.700% 5.000% Coastal 873.81 50,873.81 50,936.53 FHLB 3133M8JE5 04/27/09 N/C 180 63 103.3152 500,000.00 516,576.13 14,475.00 5,066.25 2.450% 5.790% FSW 12,432.06 512,432.06 512,550.00 FHLB 3133XR4T4 05/05/09 N/C 180 55 100.0000 500,000.00 500,000.00 5,937.50 1,814.24 2.375% 2.375% FSW 500,000.00 497,500.00 FHLB 3133XQZA3 05/07/09 N/C 180 53 99.7734 1,000,000.00 997,734.22 12,400.00 3,651.11 2.730% 2.480% Coastal (2,059.80) 997,940.20 995,500.00 FHLB 3133XRDY3 05/28/09 N/C 180 32 99.8099 500,000.00 499,049.50 6,250.00 1,111.11 2.700% 2.500% Duncan (864.10) 499,135.90 499,050.00 FHLB 3133X9JS0 06/08/09 N/C 180 22 100.0700 500,000.00 500,350.00 10,000.00 1,222.22 3.951% 4.000% Vining 350.00 500,350.00 505,912.04 FHLMC 3128X7TV6 06/12/09 11/16/08 180 44 100.0000 500,000.00 500,000.00 6,562.50 1,604.17 2.625% 2.625% FSW 500,000.00 498,200.00 FHLB 3133XRHD5 06/16/09 N/C 180 14 100.0500 500,000.00 500,250.00 6,750.00 525.00 2.649% 2.700% Samco 250.00 500,250.00 498,400.00 FHLB 3133XRLA6 06/16/09 N/C 180 14 99.8582 500,000.00 499,291.00 7,187.50 559.03 3.020% 2.875% Duncan (649.88) 499,350.12 494,150.00 FHLB 3133XRBX7 06/17/09 N/C 207 40 100.0890 500,000.00 500,445.00 7,475.00 1,444.44 2.513% 2.600% Samco 445.00 500,445.00 499,450.00 FHLB 3133XRMS6 06/17/09 N/C 180 13 99.9150 500,000.00 499,575.00 7,500.00 541.67 3.087% 3.000% FSW 425.00 500,425.00 501,350.00 FHLB 3133XRJZ4 06/18/09 N/C 180 12 100.0000 500,000.00 500,000.00 7,500.00 500.00 3.000% 3.000% FSW 500,000.00 501,350.00 FHLB 3133XREU0 06/30/09 N/C 390 30 100.0800 1,000,000.00 1,000,800.00 29,250.00 2,250.00 2.623% 2.700% Samco 733.37 1,000,733.37 996,400.00 FHLB 3133XREU0 06/30/09 N/C 390 30 100.0714 500,000.00 500,357.01 14,625.00 1,125.00 2.630% 2.700% Coastal 357.01 500,357.01 498,200.00 FHLB 3133XRJB7 06/30/09 12/30/08 180 0 100.0000 1,000,000.00 1,000,000.00 14,500.00 0.00 2.900% 2.900% FSW 1,000,000.00 999,300.00 City of Euless Investment Portfolio June 30, 2008 **Market Prices Provided by Coastal Securities Inv. Cusip Maturity Call Term Days Price Par Principal Next Int Interest Yield To Coupon Seller Unamortized Book Market Type Number Date Date (in daysl Accrued Per $100 Value Invested Payment Accrued Maturity Rate Inst. Prem/(Disc) Value Value FHLB 3133XLCJO 07/02/09 07/02/08 180 178 99.9750 500,000.00 499,875.00 13,437.50 13,288.19 5.388% 5.375% DUNCAN (125.00) 499,875.00 500,039.63 FHLMC 3128X6GD22 07/10/09 07/10/08 180 170 99.8750 500,000.00 499,375.00 13,250.00 12,513.89 5.367% 5.300% MERRILL (625.00) 499,375.00 500,341.23 FHLB 3133XLLG6 07/23/09 07/23/08 180 157 100.0000 500,000.00 500,000.00 13,500.00 11,775.00 5.400% 5.400% MERRILL 500,000.00 500,879.89 FHLB 3133XPFF6 07/30/09 07/30/08 180 150 100.0000 1,000,000.00 1,000,000.00 15,250.00 12,708.33 3.050% 3.050% FSW 1,000,000.00 1,000,076.15 FHLB 3133XPM84 08/07/09 08/07/08 180 143 100.0000 500,000.00 500,000.00 7,125.00 5,660.42 2.850% 2.850% Duncan 500,000.00 498,885.09 FHLB 3133XPP73 08/14/09 08/14/08 180 136 100.0000 1,000,000.00 1,000,000.00 14,000.00 10,577.78 2.800% 2.800% Duncan 1,000,000.00 997,122.60 FHLB 3133XGWK64 09/18/09 09/18/08 180 102 100.1430 300,000.00 300,429.00 7,740.00 4,386.00 5.012% 5.160% Duncan 429.00 300,429.00 301,656.92 FHLB 3133XNV48 09/30/09 09/30/08 180 0 100.0000 500,000.00 500,000.00 10,500.00 0.00 4.203% 4.200% Duncan 500,000.00 502,060.84 FHLB 3133XQSQ6 10/21/09 10/21/08 180 69 100.0000 500,000.00 500,000.00 6,375.00 2,443.75 2.550% 2.550% Duncan 500,000.00 498,050.00 FHLB 3133X8XJ6 10/27/09 N/C 180 63 100.1740 500,000.00 500,870.00 10,000.00 3,500.00 3.901% 4.000% Vining 593.10 500,593.10 505,557.45 FHLB 3133XR2S8 11/05/09 05/05/09 180 55 100.0000 500,000.00 500,000.00 7,500.00 2,291.67 3.000% 3.000% Duncan 500,000.00 503,879.97 FHLB 3133XR6N5 11/12/09 05/12/09 180 48 100.0000 500,000.00 500,000.00 6,875.00 1,833.33 2.750% 2.750% FSW 500,000.00 495,733.30 FHLB 3133XRAEO 11/19/09 05/19/09 180 41 100.0000 500,000.00 500,000.00 6,750.00 1,537.50 2.700% 2.700% Coastal 500,000.00 497,000.00 FHLB 3133XRAEO 11/19/09 05/19/09 180 41 100.0000 500,000.00 500,000.00 6,750.00 1,537.50 2.700% 2.700% Duncan 500,000.00 497,000.00 FFCB 31331YQ86 11/20/09 N/C 180 40 99.9854 500,000.00 499,927.00 6,875.00 1,527.78 2.760% 2.750% Duncan (73.00) 499,927.00 496,950.00 FFCB 31331YGC8 12/10/09 12/10/08 180 20 100.0000 1,000,000.00 1,000,000.00 21,000.00 2,333.33 4.200% 4.200% Coastal 1,000,000.00 1,005,990.40 FNMA 3136F6TK5 01/19/10 N/C 180 161 102.4500 500,000.00 512,250.00 10,625.00 9,503.47 2.727% 4.250% Vining 11,025.00 511,025.00 507,926.84 FHLB 3133XPFD1 02/04/10 11/04/08 180 146 100.0000 1,000,000.00 1,000,000.00 15,000.00 12,166.67 3.000% 3.000% Coastal 1,000,000.00 993,934.91 FHLB 3133XPHN7 02/04/10 02/04/09 180 146 100.0000 1,000,000.00 1,000,000.00 15,000.00 12,166.67 3.000% 3.000% Samco 1,000,000.00 993,927.57 FHLMC 3128X6W51 02/12/10 08/12/08 180 138 100.0000 500,000.00 500,000.00 7,625.00 5,845.83 3.050% 3.050% Samco 500,000.00 497,656.02 FNMA 3136F9ET6 04/01/10 04/01/09 180 89 100.0000 500,000.00 500,000.00 6,562.50 3,244.79 2.624% 2.625% Samco 500,000.00 493,600.00 FNMA 3136F9HB2 04/21/10 04/21/09 180 69 100.0000 500,000.00 500,000.00 6,875.00 2,635.42 2.750% 2.750% Coastal 500,000.00 496,200.00 FNMA 31398APZ9 04/28/10 04/28/09 180 62 100.0000 500,000.00 500,000.00 6,750.00 2,325.00 2.700% 2.700% Samco 500,000.00 498,050.00 FNMA 3136F9LP6 04/28/10 04/28/09 180 62 100.0000 1,000,000.00 1,000,000.00 15,000.00 5,166.67 3.000% 3.000% Vining 1,000,000.00 993,018.30 FHLB 3133XQW40 04/29/10 04/29/09 180 61 100.0000 500,000.00 500,000.00 7,500.00 2,541.67 3.000% 3.000% Coastal 500,000.00 496,500.00 FNMA 3136F9NX7 05/12/10 05/12/09 180 48 100.0000 1,000,000.00 1,000,000.00 16,500.00 4,400.00 3.300% 3.300% Samco 1,000,000.00 997,780.00 FNMA 3136F9PX5 05/28/10 05/28/09 180 32 100.0000 500,000.00 500,000.00 7,500.00 1,333.33 3.000% 3.000% FSW 500,000.00 496,150.00 FHLB 3133XR2Y5 06/11/10 N/C 222 61 99.7813 500,000.00 498,906.25 9,250.00 2,541.67 3.111% 3.000% Merrill (1,048.11) 498,951.89 496,850.00 FNMA 3136F9WD1 06/30/10 06/30/09 180 0 100.0000 500,000.00 500,000.00 9,687.50 0.00 3.875% 3.875% Samco 500,000.00 503,000.00 FHLB 31339Y4L3 07/16/10 N/C 180 164 105.4031 345,000.00 363,640.67 8,625.00 7,858.33 2.605% 5.000% FSW 15,977.76 360,977.76 356,189.83 TOTAL: 47,020,000.00 47,092,868.25 828,753.54 395,293.41 3.360% 62,361.87 47,082,361.87 47,073,342.10 Investment Pools LOGIC N/A N/A N/A N/A 100.0000 68.96 68.96 N/A N/A 2.539% LOGIC 68.96 68.96 Texpool N/A N/A N/A N/A 100.0000 8,268,815.30 8,268,815.30 N/A N/A 2.264% Texpool 8,268,815.30 8,268,815.30 FGIC N/A N/A N/A N/A 100.0000 2,820,960.21 2,820,960.21 N/A N/A 2.110% FGIC 2,820,960.21 2,820,960.21 TOTAL: 11,089,844.48 11,089,844.48 2.304% 0.00 11,089,844.48 11,089,844.48 TOTAL PORTFOLIO 61,609,844.48 61,604,558.56 906,907.71 432,717.80 62,361.87 61,631,476.56 61,625,499.88 City of Euless Investment by Fund September 30, 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Accrued Inv. Cusip Purchase Maturity Call Term Days Price Par Cost Interest Total Pnn. + Yield To Coupon Interest Seller Market % of Type Number Date Date Datein cf_kyal remaining Per 100 Value jPrin. Only) Po mat's/ Int. CN Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 101 -General Fund FGIC N/A 100.0000 158,274.25 158,274.25 158,274.25 1.80% FGIC 101 158,274.25 0.26% 0.00 Texpool N/A 100.0000 148,251.59 148,251.59 148,251.59 2.41% Texpool 101 148,251.59 0.24% 0.00 FHLB 3133X5YQ5 01/14/08 10/20/08 N/C 276 20 99.8839 500,000.00 499,419.50 16,500.00 516,500.00 3.45% 3.300% 3,850.00 Duncan 580.50 101 499,996.19 0.82% 0.16 FNMADN 313588N92 01/04/08 11/10/08 N/C 306 40 96.9505 1,000,000.00 969,504.72 30,495.28 1,030,495.28 3.67% 3.530% Merrill 101 996,393.87 1.59% 0.63 FNMADN 3135896F9 02/08/08 01/30/09 N/C 352 120 97.7291 1,000,000.00 977,290.83 22,709.17 1,022,709.17 2.37% 2.343% Merrill 101 989,178.66 1.60% 1.92 FNMA 3136F5DZ1 07/23/08 03/03/09 N/C 220 153 100.4730 500,000.00 502,365.00 18,000.00 518,000.00 2.81% 3.600% 7,000.00 Vining 2,365.00 101 500477.39 0.83% 1.28 FHLB 3133XRDY3 06/10/08 05/28/09 n/c 348 238 99.8099 500,000.00 499,049.50 12,500.00 512,500.00 2.70% 2.500% 416.67 Duncan 950.50 101 496,842.34 0.82% 1.95 FHLB 3133XREU0 06/03/08 06/30/09 n/c 387 270 100.0800 1,000,000.00 1,000,800.00 29,025.00 1,029,025.00 2.62% 2.700% 225.00 Samco 800.00 101 994,063.23 1.64% 4.42 FHLB 3133XPFD1 02/04/08 02/04/10 11/04/08 720 484 100.0000 1,000,000.00 1,000,000.00 60,000.00 1,060,000.00 3.00% 3.000% Coastal 101 1,001,760.45 1.64% 7.92 FHLB 3133XRXY1 08/19/08 02/19/10 02/19/09 540 499 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Duncan 101 499703.50 0.82% 4.08 FNMA 3136F9ET6 04/14/08 04/01/10 04/01/09 706 541 100.0000 500,000.00 500,000.00 26,250.00 526,250.00 2.62% 2.625% 473.96 Samco 101 502,296.25 0.82% 4.43 FHLB 3133XQW40 04/29/08 04/29/10 04/29/09 720 569 100.0000 500,000.00 500,000.00 30,000.00 530,000.00 3.00% 3.000% Coastal 101 503,589.91 0.82% 4.66 FHLB 3133XRWG1 08/11/08 05/11/10 05/11/09 630 581 100.0000 500,000.00 500,000.00 31,500.00 531,500.00 3.60% 3.600% FSW 101 501040.00 0.82% 4.76 FHLB 3133XRYL8 08/19/08 05/19/10 02/19/09 630 589 100.0000 500,000.00 500,000.00 29,531.25 529,531.25 3.38% 3.375% Coastal 101 500055.00 0.82% 4.82 FNMA 3136F9RN5 08/25/08 06/10/10 09/10/08 645 610 99.9375 500,000.00 499,687.50 33,750.00 533,750.00 3.41% 3.375% 3,515.63 Vining 312.50 101 501741.78 0.82% 5.02 FHLB 3133XR2Y5 06/11/08 06/11/10 n/c 720 611 99.7813 500,000.00 498,906.25 30,000.00 530,000.00 3.11% 3.000% 1,750.00 Merrill 1,093.75 101 498,175.15 0.82% 5.01 FFCB 31331Y5M8 08/18/08 08/18/10 02118/09 720 678 100.0000 500,000.00 500,000.00 35,700.00 535,700.00 3.57% 3.570% FSW 101 500610.00 0.82% 5.55 Subtotal 9,806,525.83 9,753,549.14 430,335.70 10,236,861.53 17,231.26 2,937.25 3,165.00 subtotal 9,792,449.54 15.99% 56.62 Fund 102 -General Fund -Emergency FHLB 3133XRUY4 07/29/08 01/29/10 01/29/09 540 479 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Duncan 102 499698.50 0.82% 3.92 Fund 103 -General Fund Contingency Texpool N/A 100.0000 0.00 0.00 0.00 2.41% FHLB 3133XRWC0 07/30/08 07/30/10 07/30/09 720 660 100.0000 500,000.00 500,000.00 36,500.00 536,500.00 3.65% 3.650% subtotal 500,000.00 500,000.00 36,500.00 536,500.00 Texpool 103 0.00 0.00% 0.00 Coastal 103 501710.00 0.82% 5.40 0.00 0.00 0.00 501,710.00 0.82% 5.40 Fund 201-Hotel/Motel FGIC N/A 100.0000 78,027.53 78,027.53 78,027.53 1.80% FGIC 201 78,027.53 0.13% 0.00 Texpool N/A 100.0000 45,398.06 45,398.06 45,398.06 2.41% Texpool 201 45,398.06 0.07% 0.00 subtotal 123,425.59 123,425.59 0.00 123,425.59 0.00 0.00 0.00 subtotal 123,425.59 0.20% 0.00 Fund 210 -Hat Cent Operations Texpool N/A 100.0000 300,694.80 300,694.80 0.00 300,694.80 2.41% FGIC N/A 100.0000 (0.00) (0.00) 0.00 (0.00) 1.80% FHLB 3133XRJB7 06/30/08 06/30/09 12130/08 360 270 100.0000 100,000.00 100,000.00 2,900.00 102,900.00 2.90% 2.900% FNMA 3136F9WD1 06/30/08 06/30/10 06/30/09 720 630 100.0000 180,000.00 180,000.00 13,950.00 193,950.00 3.88% 3.875% Subtotal 580,694.79 580,694.79 16,850.00 597,544.79 Fund 211 -Half Cent Reserve FGIC N/A 100.0000 967,152.50 967,152.50 0.00 967,152.50 1.80% Texpool 210 300,694.80 0.49% 0.00 FGIC 210 (0.00) 0.00% 0.00 FSW 210 99,627.70 0.16% 0.44 Samco 210 179,908.83 0.29% 1.86 0.00 0.00 0.00 subtotal 580,231.32 0.95% 2.30 FGIC 211 967,152.50 1.58% 0.00 Fund 220 -Crime Control and Prevention FGIC N/A 100.0000 0.00 0.00 0.00 0.00 1.80% FGIC 220 0.00 0.00% 0.00 Texpool N/A 100.0000 141,556.61 141,556.61 0.00 141,556.61 2.41% Texpool 220 141,556.61 0.23% 0.00 Subtotal 141,556.61 141,556.61 0.00 141,556.61 0.00 0.00 0.00 subtotal 141,556.61 0.23% 0.00 Fund 230 -Police DEA (Federal) FGIC N/A 100.0000 134,428.07 134,428.07 134,428.07 1.80% FGIC 230 134,428.07 0.22% 0.00 Texpool N/A 100.0000 52,647.45 52,647.45 0.00 52,647.45 2.41% Texpool 230 52,647.45 0.09% 0.00 Subtotal 187,075.52 187,075.52 0.00 187,075.52 0.00 0.00 0.00 subtotal 187,075.52 0.31% 0.00 Fund 231 -Police DEA (State) FGIC N/A 100.0000 12,764.37 12,764.37 12,764.37 1.80% FGIC 231 12,764.37 0.02% 0.00 Texpool N/A 100.0000 108,350.26 108,350.26 0.00 108,350.26 2.41% Texpool 231 108,350.26 0.18% 0.00 Subtotal 121,114.63 121,114.63 0.00 121,114.63 0.00 0.00 0.00 subtotal 121,114.63 0.20% 0.00 Fund 240 -Car Rental Fund FGIC N/A 100.0000 10,218.99 10,218.99 10,218.99 1.80% FGIC 240 10,218.99 0.02% 0.00 Texpool N/A 100.0000 206,104.80 206,104.80 206,104.80 2.41% Texpool 240 206,104.80 0.34% 0.00 FHLMC 3128X2BP9 12/17/07 11/20/08 N/C 333 50 99.8030 1,000,000.00 998,030.00 39,400.00 1,039,400.00 4.16% 3.940% 2,955.00 FSW 1,970.00 240 1,000,799.67 1.64% 0.82 FMAC 3137EAAA7 05/25/07 02/17/09 n/a 622 137 99.7668 1,000,000.00 997,667.89 97,500.00 1,097,500.00 5.01% 4.875% 13,270.83 UBS 2,332.11 240 1,005,874.16 1.65% 2.27 FNMA 3136F5DZ1 07/14/08 03/03/09 N/C 229 153 100.5200 1,000,000.00 1,005,200.00 36,000.00 1,036,000.00 2.77% 3.600% 13,100.00 Vining 5,200.00 240 1000954.77 1.67% 2.55 FHLB 3133X5689 06/19/08 03/30/09 n/c 281 180 100.3870 1,000,000.00 1,003,870.00 33,200.00 1,033,200.00 2.81% 3.320% 7,285.56 Vining 3,870.00 240 999,796.75 1.66% 2.98 FNMA 3136F5MG3 08/15/08 03/30/09 N/C 225 180 100.4000 1,000,000.00 1,004,000.00 33,100.00 1,033,100.00 2.66% 3.310% 12,412.50 Samco 4,000.00 240 1000630.00 1.66% 2.99 FNMA DN 313589DT7 06/23/08 03/31/09 n/c 277 180 97.8925 500,000.00 489,462.50 10,387.50 510,387.50 2.78% 2.700% Merrill 240 491,802.58 0.80% 1.44 FHLB 3133XRHD5 06/16/08 06/16/09 n/c 360 256 100.0500 500,000.00 500,250.00 13,500.00 513,500.00 2.65% 2.700% Samco 250.00 240 497,319.19 0.82% 2.10 FHLB 3133XRBX7 05/23/08 06/17/09 n/c 384 257 100.0890 500,000.00 500,445.00 13,000.00 513,000.00 2.51% 2.600% 108.33 Samco 445.00 240 496,954.04 0.82% 2.11 FHLB 3133XPHN7 02/04/08 02/04/10 02/04/09 720 484 100.0000 700,000.00 700,000.00 42,000.00 742,000.00 3.00% 3.000% Samco 240 703,969.01 1.15% 5.55 FHLB 3133XS5G9 09/12/08 03/12/10 03/12/09 540 522 100.0000 500,000.00 500,000.00 24,000.00 524,000.00 3.20% 3.200% FSW 240 499165.00 0.82% 4.27 City of Euless Investment by Fund September 30, 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Accrued Inv. Cusip Purchase Maturity Call Term Days Price Par Cost Interest Total Pnn. + Yield To Coupon Interest Seller Market % of Type Number Date Date Datein cf_kyal remainirw Per 100 Value jPrin. Only) f& mat'v Int. CN Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM FNMA 3136F9PX5 05/28/08 05/28/10 05/28/09 720 598 100.0000 200,000.00 200,000.00 12,000.00 212,000.00 3.00% 3.000% FSW 240 197,715.16 0.33% 1.96 FHLMC 3128X7W67 09/16/08 09/16/10 09/16/09 720 706 100.0000 500,000.00 500,000.00 36,250.00 536,250.00 3.63% 3.625% Samco 240 500665.00 0.82% 5.78 Subtotal 8,616,323.79 8,615,249.18 390,337.50 9,006,661.29 49,132.22 4,302.11 13,765.00 subtotal 8,611,969.11 14.18% 34.81 Fund 301 -Developer's Escrow FGIC N/A 100.0000 39,082.20 39,082.20 39,082.20 1.80% FGIC 301 39,082.20 0.06% 0.00 Texpool N/A 100.0000 56,849.01 56,849.01 56,849.01 2.41% Texpool 301 56,849.01 0.09% 0.00 FNMA 31398APZ9 04/28/08 04/28/10 04/28/09 720 568 100.0000 500,000.00 500,000.00 27,000.00 527,000.00 2.70% 2.700% Samco 301 502,722.52 0.82% 4.65 FNMA 3136F9NX7 05/12/08 05/12/10 05/12/09 720 582 100.0000 1,000,000.00 1,000,000.00 66,000.00 1,066,000.00 3.30% 3.300% Samco 301 993,674.75 1.64% 9.53 Subtotal 1,595,931.21 1,595,931.21 93,000.00 1,688,931.21 0.00 0.00 0.00 subtotal 1,592,328.47 2.61% 14.18 Fund 305 -Streets CIP FGIC N/A 100.0000 5,387.08 5,387.08 0.00 5,387.08 1.80% FGIC 305 5,387.08 0.01% 0.00 Texpool N/A 100.0000 838,847.03 838,847.03 0.00 838,847.03 2.41% TEXPOOL 305 838,847.03 1.37% 0.00 FHLMC 3134A2UJ5 02/07/08 10/15/08 N/C 248 15 101.6800 875,000.00 889,700.00 44,843.75 919,843.75 2.64% 5.125% 13,951.39 Vining 14700.00 305 875,605.46 1.48% 0.22 FFCB 31331XSL7 03/12/07 03/12/09 720 162 100.0000 525,000.00 525,000.00 50,400.00 575,400.00 4.80% 4.800% MERRILL 305 528,308.34 0.86% 1.39 FHLB 3133XPP73 02/14/08 08/14/09 08/14/08 540 314 100.0000 1,000,000.00 1,000,000.00 42,000.00 1,042,000.00 2.80% 2.800% Duncan 240 992,660.43 1.64% 5.14 Subtotal 3,244,234.11 3,258,934.11 137,243.75 3,381,477.86 13,951.39 0.00 14,700.00 subtotal 3,240,808.34 5.36% 6.75 Fund 310 -Half Cent CIP FGIC N/A 100.0000 347,469.17 347,469.17 0.00 347,469.17 1.80% FGIC 310 347,469.17 0.57% 0.00 Texpool N/A 100.0000 85,336.43 85,336.43 85,336.43 2.41% Texpool 310 85,336.43 0.14% 0.00 FFCB 31331YUS7 02/19/08 02/19/09 N/C 360 139 100.0000 1,000,000.00 1,000,000.00 23,750.00 1,023,750.00 2.38% 2.375% FSW 240 996,534.78 1.64% 2.28 FHLB 3133XMP96 10/24/07 04/24/09 10/24/08 540 204 100.0000 500,000.00 500,000.00 36,000.00 536,000.00 4.80% 4.800% Samco 210 500,698.47 0.82% 1.67 FHLMC 3128X1X28 02/11/08 04/27/09 N/C 436 207 102.7184 50,000.00 51,359.19 3,750.00 53,750.00 2.70% 5.000% 722.22 Coastal 1359.19 240 50,459.27 0.09% 0.18 FHLB 3133XQZA3 06/11/08 05/07/09 n/c 326 217 99.7734 1,000,000.00 997,734.22 24,800.00 1,024,800.00 2.73% 2.480% 2,342.22 Coastal 2,265.78 310 993,913.87 1.64% 3.55 FHLB 3133XRAEO 05/19/08 11/19/09 05/19/09 540 409 100.0000 500,000.00 500,000.00 20,250.00 520,250.00 2.70% 2.700% Coastal 310 502,849.89 0.82% 3.35 FHLB 3133XS2F4 09/09/08 06/09/10 06/09/09 630 609 100.0000 1,000,000.00 1,000,000.00 56,875.00 1,056,875.00 3.25% 3.250% Coastal 310 1,000,691.95 1.64% 9.97 FHLB 3133XS5F1 09/10/08 09/10/10 09/10/09 720 700 100.0000 500,000.00 500,000.00 33,750.00 533,750.00 3.38% 3.375% Coastal 310 500,465.00 0.82% 5.73 Subtotal 4,982,805.60 4,981,899.01 199,175.00 5,181,980.60 3,064.44 2,265.78 1,359.19 subtotal 4,978,418.83 8.16% 26.72 Fund 320-G.O. CIP-Fire Station Texpool N/A 100.0000 146,420.21 146,420.21 146,420.21 2.41% Texpool 320 146,420.21 0.24% 0.00 FHLB 3133XSDJ4 09/26/08 01/14/09 108 104 100.0000 500,000.00 500,000.00 4,875.00 504,875.00 3.25% 3.250% Coastal 320 500,220.00 0.82% 0.85 FNMA 3136F9HB2 04/21/08 04/21/10 04/21/09 720 561 100.0000 500,000.00 500,000.00 27,500.00 527,500.00 2.75% 2.750% Coastal 320 502,798.38 0.82% 4.59 Subtotal 1,146,420.21 1,146,420.21 27,500.00 1,178,795.21 0.00 0.00 0.00 subtotal 1,149,438.59 1.88% 5.44 Fund 321 -Redevelopment CIP FHLB 3133X8XJ6 12/14/07 10/27/09 N/C 673 387 100.1740 500,000.00 500,870.00 40,000.00 540,000.00 3.90% 4.000% 2,611.11 Vining 870.00 321 505,439.40 0.82% 3.19 Subtotal 500,000.00 500,870.00 40,000.00 540,000.00 2,611.11 0.00 870.00 subtotal 505,439.40 0.82% 3.19 Fund 325 -Police Facility CIP FGIC N/A 100.0000 31,876.92 31,876.92 0.00 31,876.92 1.80% FGIC 325 31,876.92 0.05% 0.00 Subtotal 31,876.92 31,876.92 0.00 31,876.92 0.00 0.00 0.00 subtotal 31,876.92 0.05% 0.00 Fund 330 -Car Rental CIP FGIC N/A 100.0000 (0.00) (0.00) (0.00) 1.80% FGIC 330 (0.00) 0.00% 0.00 Texpool N/A 100.0000 84,101.33 84,101.33 84,101.33 2.41% Texpool 330 84,101.33 0.14% 0.00 FFCB 31331YQ86 05/20/08 11/20/09 n/c 540 410 99.9854 500,000.00 499,927.00 20,625.00 520,625.00 2.76% 2.750% Duncan 73.00 330 500,992.77 0.82% 3.36 FHLB 3133XPHN7 02/04/08 02/04/10 02/04/09 720 484 100.0000 300,000.00 300,000.00 18,000.00 318,000.00 3.00% 3.000% Samco 240 301,701.01 0.49% 2.38 FNMA 3136F9LP6 04/28/08 04/28/10 04/28/09 720 568 100.0000 1,000,000.00 1,000,000.00 60,000.00 1,060,000.00 3.00% 3.000% Vining 330 1,007,153.96 1.64% 9.30 Subtotal 1,884,101.33 1,884,028.33 98,625.00 1,982,726.33 0.00 73.00 0.00 subtotal 1,893,949.06 3.08% 15.03 Fund 401 -Debt Service Texpool N/A 100.0000 796.51 796.51 796.51 2.41% Texpool 401 796.51 0.00% 0.00 FGIC N/A 100.0000 4,033.75 4,033.75 4,033.75 1.80% FGIC 401 4,033.75 0.01% 0.00 FHLB 3133XR4T4 05/05/08 05/05/09 n/c 360 215 100.0000 300,000.00 300,000.00 7,125.00 307,125.00 2.38% 2.375% FSW 401 298,070.25 0.49% 1.06 FHLMC 3128X7TV6 05/16/08 06/12/09 11/16/08 386 252 100.0000 500,000.00 500,000.00 14,072.92 514,072.92 2.63% 2.625% FSW 401 497,353.98 0.82% 2.06 Subtotal 804,830.26 804,830.26 21,197.92 826,028.18 0.00 0.00 0.00 subtotal 800,254.49 1.32% 3.12 Fund 402 -Star Center Debt Service Texpool N/A 100.0000 167,802.83 167,802.83 167,802.83 2.41% Texpool 402 167,802.83 0.27% 0.00 Subtotal 167,802.83 167,802.83 0.00 167,802.83 0.00 0.00 0.00 subtotal 167,802.83 0.27% 0.00 Fund 501 -Water and Sewer LOGIC N/A 100.0000 69.41 69.41 69.41 2.69% LOGIC 501 69.41 0.00% 0.00 FGIC N/A 100.0000 60,326.29 60,326.29 60,326.29 1.80% FGIC 501 60,326.29 0.10% 0.00 Texpool N/A 100.0000 2,327.67 2,327.67 2,327.67 2.41% TEXPOOL 501 2,327.67 0.00% 0.00 FHLB 3133XBJP1 02/04/08 10/17/08 N/C 253 17 101.3570 1,000,000.00 1,013,570.00 45,700.00 1,045,700.00 2.60% 4.570% 13,583.06 Vining 13570.00 501 1,000,548.43 1.68% 0.29 FNMA 31398AAF9 06/08/07 11/03/08 N/A 505 33 99.5270 500,000.00 497,634.80 36,750.00 536,750.00 5.25% 4.900% 2,381.94 UBS 2,365.20 501 500,678.44 0.82% 0.27 FHLB 3133XEN96 05/22/08 03/13/09 n/c 291 163 101.9802 500,000.00 509,901.20 23,750.00 523,750.00 2.26% 4.750% 4,552.08 Coastal 9,901.20 501 503,060.44 0.84% 1.37 Investment Type LOGIC Local Gov't Pool FGIC Money Market Pool Texpool Local Gov't Pool City of Euless Investment by Fund September 30, 2008 Institution FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Accrued Inv. Cusip Purchase Maturity Call Term Days Price Par Cost Interest Total Pnn. + Yield To Coupon Interest Seller Market % of Tvbe Number Date Date Datein cj_kyal remainirw Per 100 Value jPrin. Onlvj jW mat's/ Int. CN Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM FHLB 3133XRLA6 06/16/08 06/16/09 n/c 360 256 99.8582 500,000.00 499,291.00 14,375.00 514,375.00 3.02% 2.875% Duncan 709.00 501 497,925.33 0.82% 2.09 FHLB 3133XRMS6 06/18/08 06/17/09 n/c 359 257 99.9150 500,000.00 499,575.00 15,000.00 515,000.00 3.09% 3.000% 41.67 FSW 425.00 501 498,351.93 0.82% 2.10 FHLB 3133XREU0 06/06/08 06/30/09 n/c 384 270 100.0714 500,000.00 500,357.01 14,400.00 514,400.00 2.63% 2.700% 225.00 Coastal 357.01 501 497,031.62 0.82% 2.21 FHLB 3133XQSQ6 04/21/08 10/21/09 10/21/08 540 381 100.0000 500,000.00 500,000.00 25,500.00 525,500.00 2.55% 2.550% Duncan 502 500,415.72 0.82% 3.12 FHLB 3133XR2S8 05/05/08 11/05/09 05/05/09 540 395 100.0000 500,000.00 500,000.00 22,500.00 522,500.00 3.00% 3.000% Duncan 502 503,630.34 0.82% 3.23 FFCB 31331YGC8 12/10/07 12/10/09 12/10/08 720 430 100.0000 1,000,000.00 1,000,000.00 84,000.00 1,084,000.00 4.20% 4.200% Coastal 501 1,003,087.66 1.64% 7.04 Subtotal 5,562,723.38 5,583,052.38 281,975.00 5,844,698.38 20,783.75 3,499.20 23,828.21 subtotal 5,567,453.26 9.17% 21.73 Fund 502-W&S CIP FGIC N/A 100.0000 57,571.64 57,571.64 57,571.64 1.80% FGIC 502 57,571.64 0.09% 0.00 Texpool N/A 100.0000 580,827.24 580,827.24 580,827.24 2.41% Texpool 502 580,827.24 0.95% 0.00 FHLB 3133X5MD7 04/16/08 04/21/09 n/c 365 201 101.6430 250,000.00 254,107.50 15,000.00 265,000.00 2.35% 4.000% 4,861.11 Vining 4,107.50 502 250,867.56 0.42% 0.85 FHLB 3133XPM84 02/07/08 08/07/09 08/07/08 540 307 100.0000 300,000.00 300,000.00 12,825.00 312,825.00 2.85% 2.850% Duncan 502 297,970.08 0.49% 1.51 FHLB 3133XR6N5 05/12/08 11/12/09 05/12/09 540 402 100.0000 500,000.00 500,000.00 20,625.00 520,625.00 2.75% 2.750% FSW 502 502,950.48 0.82% 3.29 FHLB 3133XRAE0 05/19/08 11/19/09 05/19/09 540 409 100.0000 500,000.00 500,000.00 20,250.00 520,250.00 2.70% 2.700% Duncan 502 502,849.89 0.82% 3.35 FHLMC 3128X6W51 02/12/08 02/12/10 08/12/08 720 492 100.0000 500,000.00 500,000.00 30,500.00 530,500.00 3.05% 3.050% Samco 502 499,922.34 0.82% 4.03 FNMA 3136F9WD1 06/30/08 06/30/10 06/30/09 720 630 100.0000 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 3.875% Samco 502 79,959.48 0.13% 0.83 Subtotal 2,768,398.87 2,772,506.37 105,400.00 2,873,798.87 4,861.11 0.00 4,107.50 subtotal 2,772,918.70 4.55% 13.85 Fund 503-W&S Bond Reserve Fund Texpool N/A 100.0000 426,836.34 426,836.34 0.00 426,836.34 2.41% Texpool 503 426,836.34 0.70% 0.00 Fund 504 -Service Center Fund Texpool N/A 100.0000 114,514.43 114,514.43 0.00 114,514.43 2.41% Texpool 504 114,514.43 0.19% 0.00 Fund 505 -Water Impact Fees Texpool N/A 100.0000 350,501.08 350,501.08 0.00 350,501.08 2.41% Texpool 505 350,501.08 0.57% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 1.80% FGIC 505 0.00 0.00% 0.00 FHLB 3133XDJG7 01/11/08 10/14/08 N/C 273 14 100.6510 500,000.00 503,255.00 22,500.00 522,500.00 3.62% 4.500% 5,437.50 Merrill 3255.00 505 500,210.20 0.83% 0.12 FNMA 31359MTZ6 08/15/08 02/15/09 N/C 180 135 100.2670 500,000.00 501,335.00 8,125.00 508,125.00 2.71% 3.250% Samco 1,335.00 505 501,635.00 0.82% 1.11 FAMCA 31315PGW3 04/25/08 04/24/09 n/c 359 204 100.0000 1,000,000.00 1,000,000.00 23,000.00 1,023,000.00 2.30% 2.300% FSW 505 994,110.32 1.64% 3.34 FNMA 3136F9PX5 05/28/08 05/28/10 05/28/09 720 598 100.0000 300,000.00 300,000.00 18,000.00 318,000.00 3.00% 3.000% FSW 505 296,572.74 0.49% 2.94 Subtotal 2,650,501.08 2,655,091.08 71,625.00 2,722,126.08 5,437.50 0.00 4,590.00 subtotal 2,643,029.34 4.36% 7.50 Fund 507-W&S Emergency Texpool N/A 100.0000 250,000.00 250,000.00 0.00 250,000.00 2.41% Texpool 507 250,000.00 0.41% 0.00 Subtotal 250,000.00 250,000.00 0.00 250,000.00 0.00 0.00 subtotal 250,000.00 0.41% 0.00 Fund 508 -Wastewater Impact Fees FGIC N/A 100.0000 196,865.05 196,865.05 196,865.05 1.80% FGIC 508 196,865.05 0.32% 0.00 Texpool N/A 100.0000 186,481.64 186,481.64 186,481.64 2.41% Texpool 508 186,481.64 0.31% 0.00 FHLB 3133XRJZ4 06/18/08 06/18/09 n/c 360 258 100.0000 350,000.00 350,000.00 10,500.00 360,500.00 3.00% 3.000% FSW 508 348,842.03 0.57% 1.48 Subtotal 733,346.68 733,346.68 10,500.00 743,846.68 0.00 0.00 0.00 subtotal 732,188.71 1.20% 1.48 Fund 510 -Drainage FGIC N/A 100.0000 0.00 0.00 0.00 1.80% FGIC 510 0.00 0.00% 0.00 Texpool N/A 100.0000 4,742.91 4,742.91 4,742.91 2.41% Texpool 510 4,742.91 0.01% 0.00 FHLB 3133XQJB9 05/22/08 03/27/09 n/c 305 177 99.8861 350,000.00 349,601.27 7,437.50 357,437.50 2.26% 2.125% 1,136.28 Coastal 398.73 510 347,917.50 0.57% 1.02 Subtotal 354,742.91 354,344.18 7,437.50 362,180.41 1,136.28 398.73 0.00 subtotal 352,660.41 0.58% 1.02 Fund 511 -Drainage CIP FGIC N/A 100.0000 112,499.88 112,499.88 0.00 112,499.88 1.80% FGIC 511 112,499.88 0.18% 0.00 Texpool N/A 100.0000 259,214.14 259,214.14 259,214.14 2.41% Texpool 511 259,214.14 0.42% 0.00 FHLB 3133XRJB7 06/30/08 06/30/09 12/30/08 360 270 100.0000 900,000.00 900,000.00 26,100.00 926,100.00 2.90% 2.900% FSW 511 896,649.32 1.47% 3.98 Subtotal 1,271,714.01 1,271,714.01 26,100.00 1,297,814.01 0.00 0.00 0.00 subtotal 1,268,363.33 2.08% 3.98 Fund 512 -Drainage Reserve Texpool N/A 100.0000 231,119.00 231,119.00 0.00 231,119.00 2.41% Texpool 512 231,119.00 0.38% 0.00 Fund 520 -Recreation Classes FGIC N/A Texpool N/A Subtotal Fund 521 -Arbor Daze FGIC N/A Texpool N/A Subtotal Fund 530 -Softball World -Operating 100.0000 126,704.98 126,704.98 0.00 126,704.98 1.80% FGIC 520 126,704.98 0.21% 0.00 100.0000 134,915.38 134,915.38 134,915.38 2.41% Texpool 520 134,915.38 0.22% 0.00 261,620.36 261,620.36 0.00 261,620.36 0.00 0.00 0.00 subtotal 261,620.36 0.43% 0.00 100.0000 100.0000 34,340.74 1,280.71 35,621.45 34,340.74 1,280.71 35,621.45 0.00 0.00 0.00 34,340.74 1,280.71 35,621.45 1.80% 2.41% FGIC Texpool 0.00 521 34,340.74 0.06% 0.00 521 1,280.71 0.00% 0.00 0.00 0.00 subtotal 35,621.45 0.06% 0.00 City of Euless Investment by Fund September 30, 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Accrued Inv. Cusip Purchase Maturity Call Term Days Price Par Cost Interest Total Pan. + Yield To Coupon Interest Seller Market % of Tvbe Number Date Date Datein i:j_kyat gni Per 100 Value jPrin. Onlvl Po mat'v Int. CN Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM FGIC N/A 100.0000 97,855.81 97,855.81 0.00 97,855.81 1.80% FGIC 530 97,855.81 0.16% 0.00 Texpool N/A 100.0000 61.30 61.30 0.00 61.30 2.41% Texpool 530 61.30 0.00% 0.00 Subtotal 97,917.11 97,917.11 0.00 97,917.11 0.00 0.00 0.00 subtotal 97,917.11 0.16% 0.00 Fund 531 -Softball World-CIP FGIC N/A 100.0000 0.00 0.00 0.00 0.00 1.80% FGIC 531 0.00 0.00% 0.00 Texpool N/A 100.0000 0.00 0.00 0.00 0.00 2.41% Texpool 531 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 540 -Golf Course Texpool N/A 100.0000 135,394.30 135,394.30 135,394.30 2.41% Texpool 540 135,394.30 0.22% 0.00 FGIC N/A 100.0000 22,036.76 22,036.76 22,036.76 1.80% FGIC 540 22,036.76 0.04% 0.00 FHLB 3133XR4T4 05/05/08 05/05/09 n/c 360 215 100.0000 200,000.00 200,000.00 4,750.00 204,750.00 2.38% 2.375% FSW 401 198,713.50 0.33% 0.70 FHLB 3133XRJZ4 06/18/08 06/18/09 n/c 360 258 100.0000 150,000.00 150,000.00 4,500.00 154,500.00 3.00% 3.000% FSW 321 149,503.73 0.25% 0.63 Subtotal 507,431.06 507,431.06 9,250.00 516,681.06 0.00 0.00 0.00 subtotal 505,648.28 0.83% 1.34 Fund 541 -Golf CIP Texpool N/A 100.0000 161,239.76 161,239.76 0.00 161,239.76 2.41% Texpool 541 161,239.76 0.26% 0.00 FHLB 3133XRVT4 07/28/08 07/28/09 N/C 360 298 100.0000 500,000.00 500,000.00 15,000.00 515,000.00 3.00% 3.000% Duncan 541 500,345.98 0.82% 2.44 FFCB 31331Y3S7 07/30/08 01/21/10 N/C 531 471 99.9500 500,000.00 499,750.00 22,875.00 522,875.00 3.08% 3.050% 381.25 FSW 250.00 541 499,495.00 0.82% 3.86 Subtotal 1,161,239.76 1,160,989.76 37,875.00 1,199,114.76 381.25 250.00 0.00 subtotal 1,161,080.73 1.90% 6.30 Fund 550 -Parks at Texas Star FGIC N/A 100.0000 25,213.66 25,213.66 0.00 25,213.66 0.00% FGIC 550 25,213.66 0.04% 0.00 Texpool N/A 100.0000 166,305.83 166,305.83 0.00 166,305.83 2.41% Texpool 550 166,305.83 0.27% 0.00 Subtotal 191,519.50 191,519.50 0.00 191,519.50 0.00 0.00 0.00 subtotal 191,519.50 0.31% 0.00 Fund 552 -Phase II Athletic Complex FGIC N/A 100.0000 0.00 0.00 0.00 0.00 1.80% FGIC 552 0.00 0.00% 0.00 Texpool N/A 100.0000 310,234.85 310,234.85 310,234.85 2.41% Texpool 552 310,234.85 0.51% 0.00 FHLB 3133X9MF4 08/22/08 11/30/09 N/C 458 420 101.3460 400,000.00 405,384.00 24,600.00 424,600.00 3.01% 4.100% 3,735.56 Vining 5,384.00 552 405,166.16 0.67% 2.81 Subtotal 710,234.85 715,618.85 24,600.00 734,834.85 3,735.56 0.00 5,384.00 subtotal 715,401.01 1.18% 2.81 Fund 601 -Equipment Replacement FGIC N/A 100.0000 93,746.06 93,746.06 93,746.06 1.80% FGIC 601 93,746.06 0.15% 0.00 Texpool N/A 100.0000 367,002.65 367,002.65 367,002.65 2.41% Texpool 601 367,002.65 0.60% 0.00 FHLB 3133M8JE5 04/23/08 04/27/09 n/c 364 207 103.3152 500,000.00 516,576.13 43,425.00 543,425.00 2.45% 5.790% 14,153.33 FSW 16,576.12 601 506,810.94 0.87% 1.80 FHLB 3133XPM84 02/07/08 08/07/09 08/07/08 540 307 100.0000 200,000.00 200,000.00 8,550.00 208,550.00 2.85% 2.850% Duncan 601 198,646.72 0.33% 1.01 Subtotal 1,160,748.71 1,177,324.83 51,975.00 1,212,723.71 14,153.33 0.00 16,576.12 Subtotal 1,166,206.36 1.95% 2.80 Fund 610 -Insurance FGIC N/A 100.0000 34,361.82 34,361.82 34,361.82 1.80% FGIC 610 34,361.82 0.06% 0.00 Texpool N/A 100.0000 214,292.86 214,292.86 214,292.86 2.41% Texpool 610 214,292.86 0.35% 0.00 FHLMC 3128X16N2 01/17/08 11/10/08 N/C 293 40 100.3750 1,000,000.00 1,003,750.00 38,750.00 1,038,750.00 3.40% 3.875% 7,211.81 Vining 3750.00 610 1,000,563.89 1.65% 0.66 FHLB 3133X9JS0 12/14/07 06/08/09 N/C 534 248 100.0700 500,000.00 500,350.00 30,000.00 530,000.00 3.95% 4.000% 333.33 Vining 350.00 610 501,765.61 0.82% 2.03 FHLB 3133XS4P0 08/27/08 08/27/09 N/C 360 327 100.0000 500,000.00 500,000.00 15,000.00 515,000.00 3.00% 3.000% Samco 610 499,315.00 0.82% 2.68 FNMA 3136F6TK5 05/22/08 01/19/10 n/c 597 469 102.4500 500,000.00 512,250.00 42,500.00 542,500.00 2.73% 4.250% 7,260.42 Vining 12,250.00 610 507,507.61 0.85% 3.99 FHLB 3133XRXY1 08/19/08 02/19/10 02/19/09 540 499 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Coastal 610 499,703.50 0.82% 4.08 FNMA 3136F9WD1 06/30/08 06/30/10 06/30/09 720 630 100.0000 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 3.875% Samco 610 79,959.48 0.13% 0.83 FHLB 31339Y4L3 03/13/08 07/16/10 n/c 843 646 105.4031 345,000.00 363,640.67 43,125.00 388,125.00 2.61% 5.000% 2,731.25 FSW 18,640.67 610 355,287.86 0.60% 3.87 subtotal 3,673,654.68 3,708,645.35 199,950.00 3,873,604.68 17,536.81 0.00 34,990.67 subtotal 3,692,757.62 6.10% 18.14 Fund 615 -Risk Management FGIC N/A 100.0000 185,488.06 185,488.06 185,488.06 1.80% FGIC 615 185,488.06 0.30% 0.00 Texpool N/A 100.0000 19,397.95 19,397.95 19,397.95 2.41% Texpool 615 19,397.95 0.03% 0.00 FHLB 3133XSCS5 09/29/08 09/29/09 360 359 99.9022 500,000.00 499,511.00 15,000.00 515,000.00 3.10% 3.000% Duncan 489.00 615 499,288.50 0.82% 2.94 FNMA 3136F9WD1 06/30/08 06/30/10 06/30/09 720 630 100.0000 160,000.00 160,000.00 12,400.00 172,400.00 3.88% 3.875% Samco 615 159,918.96 0.26% 1.65 Subtotal 864,886.01 864,397.01 27,400.00 892,286.01 0.00 489.00 0.00 subtotal 864,093.47 1.42% 4.59 Fund 705 -Dallas Stars Escrow Reserve Texpool N/A 100.0000 1,956,777.03 1,956,777.03 1,956,777.03 2.41% Texpool 705 1,956,777.03 3.20% 0.00 60,887,418.94 60,932,797.61 2,369,227.37 63,261,521.31 154,016.01 14,215.07 123,335.69 TOTAL 60,894,426.67 100.00% 263.02 City of Euless Investment by Fund June 30, 2008 Accrued Inv. Cusip Maturity Call Term Price Par Cost Interest Total Prin. + Yield To Coupon Interest Seller Market % of Type Number Date Date (in days) Per$100 Value (Prin. Only) (al mat's/ Int. a[. Mat's/ Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 101 -General Fund FGIC N/A 100.0000 157,450.13 157,450.13 157,450.13 2.11% FGIC 101 157,450.13 0.25% 0.00 Texpool N/A 100.0000 117,588.34 117,588.34 117,588.34 2.26% Texpool 101 117,588.34 0.19% 0.00 FHLB 3133XPF82 07/01/08 N/C 150 100.0000 1,000,000.00 1,000,000.00 11,875.00 1,011,875.00 2.85% 2.850% FSW 101 1,000,021.51 1.62% 0.02 FAMCA 31315PNA3 07/29/08 N/C 232 99.9702 1,000,000.00 999,702.01 42,500.00 1,042,500.00 4.29% 4.250% 15,111.11 Coastal 297.99 101 1,001,678.83 1.64% 0.48 FHLMCDN 313396D83 08/29/08 N/C 215 98.5588 1,000,000.00 985,587.78 14,412.22 1,000,000.00 2.45% 2.380% Coastal 101 996,318.02 1.60% 0.94 FHLB 3133X5YQ5 10/20/08 N/C 276 99.8839 500,000.00 499,419.50 16,500.00 516,500.00 3.45% 3.300% 3,850.00 Duncan 580.50 101 501,337.72 0.81% 0.90 FNMADN 313588N92 11/10/08 N/C 306 96.9505 1,000,000.00 969,504.72 30,495.28 1,000,000.00 3.67% 3.530% Merrill 101 990,895.62 1.57% 2.04 FHLB 3133XP5G5 01/16/09 07/16/08 358 100.0000 1,000,000.00 1,000,000.00 35,000.00 1,035,000.00 3.50% 3.500% Samco 240 1,000,417.85 1.62% 3.17 FHLB 3133XPAN4 01/29/09 07/29/08 360 100.0000 100,000.00 100,000.00 3,050.00 103,050.00 3.05% 3.050% Duncan 101 100,043.48 0.16% 0.34 FNMADN 313589BF9 01/30/09 N/C 352 97.7291 1,000,000.00 977,290.83 22,709.17 1,000,000.00 2.37% 2.343% Merrill 101 985,049.66 1.58% 3.32 FHLB 3133XRDY3 05/28/09 N/C 348 99.8099 500,000.00 499,049.50 12,500.00 512,500.00 2.70% 2.500% 416.67 Duncan 950.50 101 499,050.00 0.81% 2.65 FHLB 3133XREU0 06/30/09 N/C 387 100.0800 1,000,000.00 1,000,800.00 29,025.00 1,029,025.00 2.62% 2.700% 225.00 Samco 800.00 101 996,400.00 1.62% 5.83 FHLB 3133XPFD1 02/04/10 11/04/08 720 100.0000 1,000,000.00 1,000,000.00 60,000.00 1,060,000.00 3.00% 3.000% Coastal 101 993,934.91 1.62% 9.29 FNMA 3136F9ET6 04/01/10 04/01/09 706 100.0000 500,000.00 500,000.00 26,250.00 526,250.00 2.62% 2.625% 473.96 Samco 101 493,600.00 0.81% 5.11 FHLB 3133XQW40 04/29/10 04/29/09 720 100.0000 500,000.00 500,000.00 30,000.00 530,000.00 3.00% 3.000% Coastal 101 496,500.00 0.81% 5.33 FHLB 3133XR2Y5 06/11/10 N/C 720 99.7813 500,000.00 498,906.25 30,000.00 530,000.00 3.11% 3.000% 1,750.00 Merrill 1,093.75 101 496,850.00 0.81% 5.68 Subtotal 10,875,038.47 10,805,299.06 364,316.67 11,171,738.47 21,826.74 2,922.74 800.00 subtotal 10,827,136.06 17.53% 45.12 Fund 102 -General Fund -Emergency FHLB 3133XPFF6 07/30/09 07/30/08 540 100.0000 500,000.00 500,000.00 22,875.00 522,875.00 3.05% 3.050% FSW 102 500,038.08 0.81% 3.16 Fund 103 -General Fund Contingency Texpool N/A 100.0000 0.00 0.00 0.00 2.26% Texpool 103 0.00 0.00% 0.00 FHLB 3133XPFF6 07/30/09 07/30/08 540 100.0000 500,000.00 500,000.00 22,875.00 522,875.00 3.05% 3.050% FSW 103 500,038.08 0.81% 3.16 subtotal 500,000.00 500,000.00 22,875.00 522,875.00 500,038.08 0.81% 3.16 Fund 201-Hotel/Motel FGIC N/A 100.0000 77,621.25 77,621.25 77,621.25 2.11% FGIC 201 77,621.25 0.13% 0.00 Texpool N/A 100.0000 45,083.22 45,083.22 45,083.22 2.26% Texpool 201 45,083.22 0.07% 0.00 subtotal 122,704.47 122,704.47 0.00 122,704.47 0.00 0.00 0.00 subtotal 122,704.47 0.20% 0.00 Fund 210 -Half Cent Operations Texpool N/A 100.0000 0.00 0.00 0.00 0.00 2.26% Texpool 210 0.00 0.00% 0.00 FGIC N/A 100.0000 (0.00) (0.00) 0.00 (0.00) 2.11% FGIC 210 (0.00) 0.00% 0.00 FHLB 3133XRJB7 06/30/09 12/30/08 360 100.0000 100,000.00 100,000.00 2,900.00 102,900.00 2.90% 2.900% FSW 210 99,930.00 0.16% 0.58 FNMA 3136F9WD1 06/30/10 06/30/09 720 100.0000 180,000.00 180,000.00 13,950.00 193,950.00 3.88% 3.875% Samco 210 181,080.00 0.29% 2.10 Subtotal 280,000.00 280,000.00 16,850.00 296,850.00 0.00 0.00 0.00 subtotal 281,010.00 0.45% 2.68 Fund 211 -Half Cent Reserve FGIC N/A 100.0000 962,116.63 962,116.63 0.00 962,116.63 2.11% FGIC 211 962,116.63 1.56% 0.00 Fund 220 -Crime Control and Prevention FGIC N/A 100.0000 0.00 0.00 0.00 0.00 2.11% FGIC 220 0.00 0.00% 0.00 Texpool N/A 100.0000 140,574.91 140,574.91 0.00 140,574.91 2.26% Texpool 220 140,574.91 0.23% 0.00 Subtotal 140,574.91 140,574.91 0.00 140,574.91 0.00 0.00 0.00 subtotal 140,574.91 0.23% 0.00 Fund 230 -Police DEA (Federal) FGIC N/A 100.0000 133,728.11 133,728.11 133,728.11 2.11% FGIC 230 133,728.11 0.22% 0.00 Texpool N/A 100.0000 52,282.34 52,282.34 0.00 52,282.34 2.26% Texpool 230 52,282.34 0.08% 0.00 Subtotal 186,010.45 186,010.45 0.00 186,010.45 0.00 0.00 0.00 subtotal 186,010.45 0.30% 0.00 Fund 231 -Police DEA (State) FGIC N/A 100.0000 12,697.91 12,697.91 12,697.91 2.11% FGIC 231 12,697.91 0.02% 0.00 Texpool N/A 100.0000 107,598.84 107,598.84 0.00 107,598.84 2.26% Texpool 231 107,598.84 0.17% 0.00 Subtotal 120,296.75 120,296.75 0.00 120,296.75 0.00 0.00 0.00 subtotal 120,296.75 0.19% 0.00 Fund 240 -Car Rental Fund FGIC N/A 100.0000 10,165.78 10,165.78 10,165.78 2.11% FGIC 240 10,165.78 0.02% 0.00 Texpool N/A 100.0000 105,138.97 105,138.97 105,138.97 2.26% Texpool 240 105,138.97 0.17% 0.00 FHLMC 3128X2BP9 11/20/08 N/C 333 99.8030 1,000,000.00 998,030.00 39,400.00 1,039,400.00 4.16% 3.940% 2,955.00 FSW 1,970.00 240 1,005,430.15 1.62% 2.27 FMAC 3137EAAA7 02/17/09 N/C 622 99.7668 1,000,000.00 997,667.89 97,500.00 1,097,500.00 5.01% 4.875% 13,270.83 UBS 2,332.11 240 1,014,351.57 1.64% 3.72 FHLB 3133X56B9 03/30/09 N/C 281 100.3870 1,000,000.00 1,003,870.00 33,200.00 1,033,200.00 2.81% 3.320% 7,285.56 Vining 3,870.00 240 1,004,971.52 1.64% 4.42 FNMA DN 313589DT7 03/31/09 N/C 277 97.8925 500,000.00 489,462.50 10,537.50 500,000.00 2.78% 2.700% Merrill 240 490,050.00 0.79% 2.14 Inv. Cusip Maturity Type Number Date FHLB FHLB FHLB FNMA Subtotal City of Euless Investment by Fund June 30, 2008 Accrued Call Term Price Par Cost Interest Total Prin. + Yield To Coupon Interest Seller Market % of Date (in days) Per$100 Value (Prin. Only) a. mat's/ Int. an- Mat'y Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM 3133XRHD5 06/16/09 N/C 360 100.0500 500,000.00 500,250.00 13,500.00 3133XRBX7 06/17/09 N/C 384 100.0890 500,000.00 500,445.00 13,000.00 3133XPHN7 02/04/10 02/04/09 720 100.0000 700,000.00 700,000.00 42,000.00 3136F9PX5 05/28/10 05/28/09 720 100.0000 200,000.00 200,000.00 12,000.00 5,515,304.75 5,505,030.14 261,137.50 Fund 301 -Developer's Escrow FGIC N/A Texpool FNMA FNMA Subtotal N/A 31398APZ9 04/28/10 3136F9NX7 05/12/10 Fund 305 -Streets CIP FGIC Texpool FHLMC FFCB FHLB Subtotal N/A N/A 3134A2UJ5 31331XSL7 3133XPP73 100.0000 38,878.70 38,878.70 100.0000 56,454.76 56,454.76 04/28/09 720 100.0000 500,000.00 500,000.00 27,000.00 05/12/09 720 100.0000 1,000,000.00 1,000,000.00 66,000.00 1,595,333.46 1,595,333.46 93,000.00 100.0000 5,359.03 5,359.03 0.00 100.0000 1,038,450.03 1,038,450.03 0.00 10/15/08 N/C 248 101.6800 875,000.00 889,700.00 44,843.75 03/12/09 N/C 720 100.0000 525,000.00 525,000.00 50,400.00 08/14/09 08/14/08 540 100.0000 1,000,000.00 1,000,000.00 42,000.00 3,443,809.06 3,458,509.06 137,243.75 Fund 310 -Half Cent CIP FGIC N/A 100.0000 Texpool N/A 100.0000 FMAC 3128X1QW0 07/14/08 01/14/07 676 95.7650 FNMA 31359MTF0 09/15/08 N/C 244 100.0000 FFCB 31331YUS7 02/19/09 N/C 360 100.0000 FHLB 3133XMP96 04/24/09 10/24/08 540 100.0000 FHLMC 3128X1X28 04/27/09 N/C 436 102.7184 FHLB 3133XQZA3 05/07/09 N/C 326 99.7734 FHLB 3133XRAEO 11/19/09 05/19/09 540 100.0000 Subtotal Fund 320-G.O. CIP-Fire Station Texpool N/A FHLB 3133XNV48 09/30/09 09/30/08 FNMA 3136F9HB2 04/21/10 04/21/09 Subtotal Fund 321 -Redevelopment CIP FHLB 3133XRJZ4 06/18/09 FHLB 3133X8XJ6 10/27/09 Subtotal Fund 325 -Police Facility CIP FGIC N/A Subtotal Fund 330 -Car Rental CIP FGIC Texpool FHLB FHLB FHLB FFCB FHLB FNMA Subtotal N/A N/A 3133XPQW7 3133XEZP7 3133XGWK64 31331YQ86 3133XPHN7 3136F9LP6 Fund 401 -Debt Service Texpool N/A FGIC N/A FHLB 3133XR4T4 FHLMC 3128X7TV6 08/15/08 09/12/08 09/18/09 11/20/09 02/04/10 04/28/10 N/C N/C 100.0000 632 100.0000 720 100.0000 360 100.0000 673 100.1740 N/C 180 N/C 261 09/18/08 720 N/C 540 02/04/09 720 04/28/09 720 345,659.93 345,659.93 0.00 282,427.07 282,427.07 0.00 200,000.00 191,530.00 12,000.00 1,000,000.00 1,000,000.00 37,500.00 1,000,000.00 1,000,000.00 23,750.00 500,000.00 500,000.00 36,000.00 50,000.00 51,359.19 3,750.00 1,000,000.00 997,734.22 24,800.00 500,000.00 500,000.00 20,250.00 4,878,086.99 4,868,710.40 158,050.00 145,404.78 145,404.78 500,000.00 500,000.00 42,000.00 500,000.00 500,000.00 27,500.00 1,145,404.78 1,145,404.78 69,500.00 150,000.00 150,000.00 4,500.00 500,000.00 500,870.00 40,000.00 650,000.00 650,870.00 44,500.00 100.0000 31,710.94 31,710.94 0.00 31,710.94 31,710.94 0.00 100.0000 (0.00) (0.00) 100.0000 83,518.09 83,518.09 100.0000 1,000,000.00 1,000,000.00 12,750.00 100.4156 200,000.00 200,831.20 10,000.00 100.1430 300,000.00 300,429.00 30,960.00 99.9854 500,000.00 499,927.00 20,625.00 100.0000 300,000.00 300,000.00 18,000.00 100.0000 1,000,000.00 1,000,000.00 60,000.00 3,383,518.08 3,384,705.28 152,335.00 100.0000 35,715.13 35,715.13 100.0000 4,012.75 4,012.75 05/05/09 N/C 360 100.0000 500,000.00 500,000.00 11,875.00 06/12/09 11/16/08 386 100.0000 500,000.00 500,000.00 14,072.92 513,500.00 2.65% 2.700% Samco 250.00 240 498,400.00 0.81% 2.80 513,000.00 2.51% 2.600% 108.33 Samco 445.00 240 499,450.00 0.81% 2.81 742,000.00 3.00% 3.000% Samco 240 695,749.30 1.13% 6.51 212,000.00 3.00% 3.000% FSW 240 198,460.00 0.32% 2.23 5,765,904.75 23,619.72 4,302.11 4,565.00 subtotal 5,522,167.28 8.95% 26.89 38,878.70 2.11% FGIC 301 38,878.70 0.06% 0.00 56,454.76 2.26% Texpool 301 56,454.76 0.09% 0.00 527,000.00 2.70% 2.700% Samco 301 498,050.00 0.81% 5.33 1,066,000.00 3.30% 3.300% Samco 301 997,780.00 1.62% 10.88 1,688,333.46 0.00 0.00 0.00 subtotal 1,591,163.46 2.58% 16.21 5,359.03 2.11% FGIC 305 5,359.03 0.01% 0.00 1,038,450.03 2.26% TEXPOOL 305 1,038,450.03 1.68% 0.00 919,843.75 2.64% 5.125% 13,951.39 Vining 14700.00 305 881,789.95 1.46% 1.54 575,400.00 4.80% 4.800% MERRILL 305 532,763.65 0.85% 2.14 1,042,000.00 2.80% 2.800% Duncan 240 997,122.60 1.62% 6.54 3,581,052.81 13,951.39 0.00 14,700.00 subtotal 3,455,485.26 5.62% 10.22 345,659.93 2.11% FGIC 310 345,659.93 0.56% 0.00 282,427.07 2.26% Texpool 310 282,427.07 0.46% 0.00 212,000.00 5.40% 3.000% 733.33 COASTAL 8,470.00 240 200,066.41 0.31% 0.04 1,037,500.00 3.74% 3.750% 12,083.33 Samco 240 1,003,157.07 1.64% 1.23 1,023,750.00 2.38% 2.375% FSW 240 998,884.93 1.62% 3.71 536,000.00 4.80% 4.800% Samco 210 503,390.10 0.81% 2.38 53,750.00 2.70% 5.000% 722.22 Coastal 1359.19 240 50,936.53 0.08% 0.25 1,024,800.00 2.73% 2.480% 2,342.22 Coastal 2,265.78 310 995,500.00 1.62% 4.97 520,250.00 2.70% 2.700% Coastal 310 497,000.00 0.81% 4.04 5,036,136.99 15,881.10 10,735.78 1,359.19 subtotal 4,877,022.02 7.91% 16.62 145,404.78 2.26% Texpool 320 145,404.78 0.24% 0.00 542,000.00 4.20% 4.200% Duncan 320 502,060.84 0.81% 3.64 527,500.00 2.75% 2.750% Coastal 320 496,200.00 0.81% 5.27 1,214,904.78 0.00 0.00 0.00 subtotal 1,143,665.61 1.85% 8.91 154,500.00 3.00% 3.000% FSW 321 150,405.00 0.24% 0.85 540,000.00 3.90% 4.000% 2,611.11 Vining 870.00 321 505,557.45 0.82% 3.89 694,500.00 2,611.11 0.00 870.00 subtotal 655,962.45 1.06% 4.73 31,710.94 2.11% FGIC 325 31,710.94 0.05% 0.00 31,710.94 0.00 0.00 0.00 subtotal 31,710.94 0.05% 0.00 (0.00) 2.11% FGIC 330 (0.00) 0.00% 0.00 83,518.09 2.26% Texpool 330 83,518.09 0.14% 0.00 1,012,750.00 2.55% 2.550% FSW 240 1,000,421.57 1.62% 0.73 210,000.00 4.40% 5.000% 2,750.00 FSW 831.20 330 201,093.35 0.33% 0.24 330,960.00 5.01% 5.160% Duncan 429.00 330 301,656.92 0.49% 2.13 520,625.00 2.76% 2.750% Duncan 73.00 330 496,950.00 0.81% 4.05 318,000.00 3.00% 3.000% Samco 240 298,178.27 0.49% 2.79 1,060,000.00 3.00% 3.000% Vining 330 993,018.30 1.62% 10.65 3,535,853.08 2,750.00 73.00 1,260.20 subtotal 3,374,836.50 5.48% 20.58 35,715.13 2.26% Texpool 401 35,715.13 0.06% 0.00 4,012.75 2.11% FGIC 401 4,012.75 0.01% 0.00 511,875.00 2.38% 2.375% FSW 401 497,500.00 0.81% 2.47 514,072.92 2.63% 2.625% FSW 401 498,200.00 0.81% 2.77 City of Euless Investment by Fund June 30, 2008 Accrued Inv. Cusip Maturity Call Term Price Par Cost Interest Total Prin. + Yield To Coupon Interest Seller Market % of Type Number Date Date (in days) Per$100 Value (Prin. Only) a. mat's/ Int. at . Mat's/ Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Subtotal 1,039,727.88 1,039,727.88 25,947.92 1,065,675.80 0.00 0.00 0.00 subtotal 1,035,427.88 1.68% 5.24 Fund 402 -Star Center Debt Service Texpool N/A 100.0000 529,810.17 529,810.17 529,810.17 2.26% Texpool 402 529,810.17 0.86% 0.00 Subtotal 529,810.17 529,810.17 0.00 529,810.17 0.00 0.00 0.00 subtotal 529,810.17 0.86% 0.00 Fund 501 -Water and Sewer LOGIC N/A 100.0000 68.96 68.96 68.96 2.54% LOGIC 501 68.96 0.00% 0.00 FGIC N/A 100.0000 60,012.18 60,012.18 60,012.18 2.11% FGIC 501 60,012.18 0.10% 0.00 Texpool N/A 100.0000 100,577.77 100,577.77 100,577.77 2.26% TEXPOOL 501 100,577.77 0.16% 0.00 FHLB 3133XBJP1 10/17/08 N/C 253 101.3570 1,000,000.00 1,013,570.00 45,700.00 1,045,700.00 2.60% 4.570% 13,583.06 Vining 13570.00 501 1,006,295.38 1.66% 1.78 FNMA 31359MTF0 09/15/08 N/C 301 99.5890 0.00 (1,027.50) 0.00 0.00 4.25% 3.750% 1,536.46 Samco 1,027.50 501 0.00 0.00% 0.00 FNMA 31398AAF9 11/03/08 N/C 505 99.5270 500,000.00 497,634.80 36,750.00 536,750.00 5.25% 4.900% 2,381.94 UBS 2,365.20 501 503,984.41 0.81% 1.00 FHLB 3133XEN96 03/13/09 N/C 291 101.9802 500,000.00 509,901.20 23,750.00 523,750.00 2.26% 4.750% 4,552.08 Coastal 9,901.20 501 507,250.00 0.83% 2.11 FHLB 3133XRLA6 06/16/09 N/C 360 99.8582 500,000.00 499,291.00 14,375.00 514,375.00 3.02% 2.875% Duncan 709.00 501 494,150.00 0.81% 2.80 FHLB 3133XRMS6 06/17/09 N/C 359 99.9150 500,000.00 499,575.00 15,000.00 515,000.00 3.09% 3.000% 41.67 FSW 425.00 501 501,350.00 0.81% 2.81 FHLB 3133XREU0 06/30/09 N/C 384 100.0714 500,000.00 500,357.01 14,400.00 514,400.00 2.63% 2.700% 225.00 Coastal 357.01 501 498,200.00 0.81% 2.92 FFCB 31331YGC8 12/10/09 12/10/08 720 100.0000 1,000,000.00 1,000,000.00 84,000.00 1,084,000.00 4.20% 4.200% Coastal 501 1,005,990.40 1.62% 8.42 Subtotal 4,660,658.91 4,679,960.41 233,975.00 4,894,633.91 22,320.21 4,526.70 23,828.21 subtotal 4,677,879.09 7.61% 21.82 Fund 502-W&S CIP FGIC N/A 100.0000 57,271.87 57,271.87 57,271.87 2.11% FGIC 502 57,271.87 0.09% 0.00 Texpool N/A 100.0000 441,952.45 441,952.45 441,952.45 2.26% Texpool 502 441,952.45 0.72% 0.00 FHLB 3133X8R61 07/15/08 N/C 453 98.8610 300,000.00 296,583.00 21,787.50 321,787.50 5.10% 4.150% 6,121.25 VINING 3,417.00 502 300,242.57 0.49% 0.07 FHLB 3133X5MD7 04/21/09 N/C 365 101.6430 250,000.00 254,107.50 15,000.00 265,000.00 2.35% 4.000% 4,861.11 Vining 4,107.50 502 252,610.90 0.42% 1.22 FHLB 3133XPM84 08/07/09 08/07/08 540 100.0000 300,000.00 300,000.00 12,825.00 312,825.00 2.85% 2.850% Duncan 502 299,331.05 0.49% 1.93 FHLB 3133XQSQ6 10/21/09 10/21/08 540 100.0000 500,000.00 500,000.00 25,500.00 525,500.00 2.55% 2.550% Duncan 502 498,050.00 0.81% 3.81 FHLB 3133XR2S8 11/05/09 05/05/09 540 100.0000 500,000.00 500,000.00 22,500.00 522,500.00 3.00% 3.000% Duncan 502 503,879.97 0.81% 3.93 FHLB 3133XR6N5 11/12/09 05/12/09 540 100.0000 500,000.00 500,000.00 20,625.00 520,625.00 2.75% 2.750% FSW 502 495,733.30 0.81% 3.98 FHLB 3133XRAE0 11/19/09 05/19/09 540 100.0000 500,000.00 500,000.00 20,250.00 520,250.00 2.70% 2.700% Duncan 502 497,000.00 0.81% 4.04 FHLMC 3128X6W51 02/12/10 08/12/08 720 100.0000 500,000.00 500,000.00 30,500.00 530,500.00 3.05% 3.050% Samco 502 497,656.02 0.81% 4.71 FNMA 3136F9WD1 06/30/10 06/30/09 720 100.0000 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 3.875% Samco 502 80,480.00 0.13% 0.93 Subtotal 3,929,224.32 3,929,914.82 175,187.50 4,104,411.82 10,982.36 3,417.00 4,107.50 subtotal 3,924,208.12 6.38% 24.63 Fund 503-W&S Bond Reserve Fund Texpool N/A 100.0000 423,876.21 423,876.21 0.00 423,876.21 2.26% Texpool 503 423,876.21 0.69% 0.00 Fund 504 -Service Center Fund Texpool N/A 100.0000 113,720.26 113,720.26 0.00 113,720.26 2.26% Texpool 504 113,720.26 0.18% 0.00 Fund 505 -Water Impact Fees Texpool N/A 100.0000 49,460.87 49,460.87 0.00 49,460.87 2.26% Texpool 505 49,460.87 0.08% 0.00 FGIC N/A 100.0000 0.00 0.00 0.00 0.00 2.11% FGIC 505 0.00 0.00% 0.00 FHLB 3133X0LJ6 08/15/08 N/C 229 99.7911 500,000.00 498,955.43 18,750.00 518,750.00 4.08% 3.750% 6,822.92 Coastal 1,044.57 505 500,936.14 0.82% 0.37 FHLB 3133XASR9 09/15/08 N/C 513 98.5300 250,000.00 246,325.00 15,000.00 265,000.00 5.08% 4.000% 750.00 VINING 3,675.00 505 250,916.35 0.40% 0.30 FHLB 3133XDJG7 10/14/08 N/C 273 100.6510 500,000.00 503,255.00 22,500.00 522,500.00 3.62% 4.500% 5,437.50 Merrill 3255.00 505 502,958.97 0.82% 0.86 FAMCA 31315PGW3 04/24/09 N/C 359 100.0000 1,000,000.00 1,000,000.00 23,000.00 1,023,000.00 2.30% 2.300% FSW 505 997,000.00 1.62% 4.76 FNMA 3136F9PX5 05/28/10 05/28/09 720 100.0000 300,000.00 300,000.00 18,000.00 318,000.00 3.00% 3.000% FSW 505 297,690.00 0.49% 3.34 Subtotal 2,599,460.87 2,597,996.30 97,250.00 2,696,710.87 13,010.42 4,719.57 3,255.00 subtotal 2,598,962.32 4.23% 9.63 Fund 507-W&S Emergency Texpool N/A 100.0000 250,000.00 250,000.00 0.00 250,000.00 2.26% Texpool 507 250,000.00 0.40% 0.00 FNMA 31359MTF0 09/15/08 N/C 301 100.0000 250,000.00 250,000.00 9,375.00 259,375.00 4.25% 3.750% Samco 507 250,789.27 0.40% 0.30 Subtotal 500,000.00 500,000.00 9,375.00 509,375.00 0.00 0.00 subtotal 500,789.27 0.81% 0.30 Fund 508 -Wastewater Impact Fees FGIC N/A 100.0000 195,839.99 195,839.99 195,839.99 2.11% FGIC 508 195,839.99 0.32% 0.00 Texpool N/A 100.0000 185,188.38 185,188.38 185,188.38 2.26% Texpool 508 185,188.38 0.30% 0.00 FHLB 3133XRJZ4 06/18/09 N/C 360 100.0000 350,000.00 350,000.00 10,500.00 360,500.00 3.00% 3.000% FSW 508 350,945.00 0.57% 1.97 Subtotal 731,028.36 731,028.36 10,500.00 741,528.36 0.00 0.00 0.00 subtotal 731,973.36 1.18% 1.97 Fund 510 -Drainage FGIC N/A 100.0000 0.00 0.00 0.00 2.11% FGIC 510 0.00 0.00% 0.00 Inv. Type Texpool FHLB FNMA Subtotal Cusip Maturity Number Date City of Euless Investment by Fund June 30, 2008 Call Term Price Par Cost Interest Total Prin. + Yield To Date (in days) Per $100 Value (Prin. Only) (al mat's/ Int. an- Mat'y Maturity N/A 3133XQJB9 03/27/09 N/C 3136F9WD1 06/30/10 06/30/09 Fund 511 -Drainage CIP FGIC N/A Texpool N/A FHLB 3133XRJB7 Subtotal Fund 512 -Drainage Reserve Texpool N/A Fund 520 -Recreation Classes FGIC N/A Texpool N/A Subtotal Fund 521 -Arbor Daze FGIC N/A Texpool N/A Subtotal 100.0000 305 99.8861 720 100.0000 63,107.19 63,107.19 63,107.19 2.26% 350,000.00 349,601.27 7,437.50 357,437.50 2.26% 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 493,107.19 492,708.46 13,637.50 506,744.69 Accrued Coupon Interest Rate Purchased 2.125% 1,136.28 3.875% 1,136.28 100.0000 111,914.10 111,914.10 0.00 111,914.10 2.11% 100.0000 257,416.48 257,416.48 257,416.48 2.26% 06/30/09 12/30/08 360 100.0000 900,000.00 900,000.00 26,100.00 926,100.00 2.90% 2.900% 1,269,330.58 1,269,330.58 26,100.00 1,295,430.58 Fund 530 -Softball World -Operating FGIC N/A Texpool N/A Subtotal Fund 531 -Softball World-CIP FGIC N/A Texpool N/A Subtotal Fund 540 -Golf Course Texpool N/A FGIC N/A FHLB 3133XPAN4 01/29/09 07/29/08 Subtotal Fund 541 -Golf CIP Texpool N/A FMAC 3128X6GD22 FHLB 3133XLLG6 Subtotal Fund 550 -Parks at Texas Star FGIC N/A Texpool N/A Subtotal 07/10/09 07/10/08 07/23/09 07/23/08 Fund 552 -Phase II Athletic Complex FGIC N/A Texpool N/A FHLB 3133XLCJ0 07/02/09 07/02/08 Subtotal Fund 601 -Equipment Replacement FGIC N/A Texpool N/A FHLB 3133XPAN4 FHLB 3133M8JE5 FHLB 3133XPM84 Subtotal 01/29/09 04/27/09 08/07/09 100.0000 231,119.00 231,119.00 0.00 231,119.00 2.26% 100.0000 126,045.24 126,045.24 0.00 126,045.24 2.11% 100.0000 133,979.73 133,979.73 133,979.73 2.26% 260,024.97 260,024.97 0.00 260,024.97 100.0000 56,083.95 56,083.95 0.00 56,083.95 2.11% 100.0000 1,271.83 1,271.83 0.00 1,271.83 2.26% 57,355.78 57,355.78 0.00 57,355.78 100.0000 97,346.28 97,346.28 0.00 97,346.28 2.11% 100.0000 60.87 60.87 0.00 60.87 2.26% 97,407.15 97,407.15 0.00 97,407.15 100.0000 0.00 0.00 0.00 0.00 2.11% 100.0000 0.00 0.00 0.00 0.00 2.26% 100.0000 100.0000 360 100.0000 100.0000 712 99.8750 720 100.0000 0.00 0.00 0.00 0.00 143,481.96 143,481.96 143,481.96 0.00 0.00 0.00 200,000.00 200,000.00 6,100.00 206,100.00 343,481.96 343,481.96 6,100.00 349,581.96 160,121.55 160,121.55 0.00 160,121.55 500,000.00 499,375.00 53,000.00 553,000.00 500,000.00 500,000.00 54,000.00 554,000.00 1,160,121.55 1,159,496.55 107,000.00 1,267,121.55 0.00 0.00 0.00 0.00 0.00 Seller Inst. Texpool Coastal Samco FGIC Texpool FSW Texpool FGIC Texpool FGIC Texpool FGIC Texpool FGIC Texpool 2.26% Texpool 2.11% FGIC 3.05% 3.050% Duncan 2.26% Texpool 5.37% 5.300% 588.89 MERRILL 5.40% 5.400% 0.00 MERRILL 588.89 FGIC Texpool 2.11% FGIC 2.26% Texpool 5.39% 5.375% 0.00 DUNCAN FGIC Texpool Duncan 14,153.33 FSW Duncan 100.0000 25,082.38 25,082.38 0.00 25,082.38 0.00% 100.0000 165,152.50 165,152.50 0.00 165,152.50 2.26% 190,234.87 190,234.87 0.00 190,234.87 100.0000 100.0000 720 99.9750 0.00 0.00 0.00 0.00 307,324.78 307,324.78 307,324.78 500,000.00 499,875.00 53,750.00 553,750.00 807,324.78 807,199.78 53,750.00 861,074.78 0.00 0.00 100.0000 93,257.93 93,257.93 93,257.93 2.11% 100.0000 164,457.47 164,457.47 164,457.47 2.26% 07/29/08 360 100.0000 200,000.00 200,000.00 6,100.00 206,100.00 3.05% N/C 364 103.3152 500,000.00 516,576.13 43,425.00 543,425.00 2.45% 08/07/08 540 100.0000 200,000.00 200,000.00 8,550.00 208,550.00 2.85% 1,157,715.40 1,174,291.53 58,075.00 1,215,790.40 3.050% 5.790% 2.850% 0.00 14,153.33 Market % of Discount Premium Fund Value Portfolio WAM 510 63,107.19 0.10% 0.00 398.73 510 349,125.00 0.57% 1.52 510 80,480.00 0.13% 0.93 398.73 0.00 subtotal 492,712.19 0.80% 2.45 511 111,914.10 0.18% 0.00 511 257,416.48 0.42% 0.00 511 899,370.00 1.46% 5.25 0.00 0.00 subtotal 1,268,700.58 2.06% 5.25 512 231,119.00 0.37% 0.00 520 126,045.24 0.20% 0.00 520 133,979.73 0.22% 0.00 0.00 0.00 subtotal 260,024.97 0.42% 0.00 521 56,083.95 0.09% 0.00 521 1,271.83 0.00% 0.00 0.00 0.00 subtotal 57,355.78 0.09% 0.00 530 97,346.28 0.16% 0.00 530 60.87 0.00% 0.00 0.00 0.00 subtotal 97,407.15 0.16% 0.00 531 0.00 0.00% 0.00 531 0.00 0.00% 0.00 0.00 0.00 subtotal 0.00 0.00% 0.00 540 143,481.96 0.23% 0.00 540 0.00 0.00% 0.00 540 200,086.95 0.32% 0.68 0.00 0.00 subtotal 343,568.91 0.56% 0.68 541 160,121.55 0.26% 0.00 625.00 541 500,341.23 0.81% 3.00 0.00 541 500,879.89 0.81% 3.10 625.00 0.00 subtotal 1,161,342.67 1.88% 6.10 550 25,082.38 0.04% 0.00 550 165,152.50 0.27% 0.00 0.00 0.00 subtotal 190,234.87 0.31% 0.00 552 0.00 0.00% 0.00 552 307,324.78 0.50% 0.00 125.00 552 500,039.63 0.81% 2.93 125.00 0.00 subtotal 807,364.41 1.31% 2.93 601 601 601 16,576.12 601 601 0.00 16,576.12 Subtotal 93,257.93 0.15% 0.00 164,457.47 0.27% 0.00 200,086.95 0.32% 0.68 512,550.00 0.86% 2.55 199,554.04 0.32% 1.29 1,169,906.39 1.92% 4.51 City of Euless Investment by Fund June 30, 2008 Accrued Inv. Cusip Maturity Call Term Price Par Cost Interest Total Prin. + Yield To Coupon Interest Seller Market % of Type Number Date Date (in days) Per$100 Value (Prin. Only) 51 mat's/ Int. a[. Mat's/ Maturity Rate Purchased Inst. Discount Premium Fund Value Portfolio WAM Fund 610 -Insurance FGIC N/A 100.0000 34,182.90 34,182.90 34,182.90 2.11% FGIC 610 34,182.90 0.06% 0.00 Texpool N/A 100.0000 212,806.73 212,806.73 212,806.73 2.26% Texpool 610 212,806.73 0.34% 0.00 FHLB 3133XPEWO 08/01/08 N/C 180 100.0000 1,000,000.00 1,000,000.00 14,000.00 1,014,000.00 2.80% 2.800% FSW 610 1,000,491.94 1.62% 0.50 FHLMC 3128X16N2 11/10/08 N/C 293 100.3750 1,000,000.00 1,003,750.00 38,750.00 1,038,750.00 3.40% 3.875% 7,211.81 Vining 3750.00 610 1,004,803.20 1.64% 2.13 FHLB 3133X9JS0 06/08/09 N/C 534 100.0700 500,000.00 500,350.00 30,000.00 530,000.00 3.95% 4.000% 333.33 Vining 350.00 610 505,912.04 0.81% 2.74 FNMA 3136F6TK5 01/19/10 N/C 597 102.4500 500,000.00 512,250.00 42,500.00 542,500.00 2.73% 4.250% 7,260.42 Vining 12,250.00 610 507,926.84 0.84% 4.70 FNMA 3136F9WD1 06/30/10 06/30/09 720 100.0000 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 3.875% Samco 610 80,480.00 0.13% 0.93 FHLB 31339Y4L3 07/16/10 N/C 843 105.4031 345,000.00 363,640.67 43,125.00 388,125.00 2.61% 5.000% 2,731.25 FSW 18,640.67 610 356,189.83 0.59% 4.37 subtotal 3,671,989.63 3,706,980.30 174,575.00 3,846,564.63 17,536.81 0.00 34,990.67 subtotal 3,702,793.48 6.03% 15.37 Fund 615 -Risk Management FGIC N/A 100.0000 184,522.25 184,522.25 184,522.25 2.11% FGIC 615 184,522.25 0.30% 0.00 Texpool N/A 100.0000 166,945.86 166,945.86 166,945.86 2.26% Texpool 615 166,945.86 0.27% 0.00 FHLB 3133XPK29 07/08/08 N/C 152 100.0000 500,000.00 500,000.00 5,700.00 505,700.00 2.70% 2.700% Duncan 615 500,060.88 0.81% 0.06 FHLB 3133X13V7 09/30/08 N/C 528 98.7216 125,000.00 123,402.00 7,968.75 132,968.75 5.17% 4.250% 177.08 DUNCAN 1,598.00 615 125,628.08 0.20% 0.18 FNMA 3136F9WD1 06/30/10 06/30/09 720 100.0000 80,000.00 80,000.00 6,200.00 86,200.00 3.88% 3.875% Samco 615 80,480.00 0.13% 0.93 Subtotal 1,056,468.11 1,054,870.11 19,868.75 1,076,336.86 177.08 1,598.00 0.00 subtotal 1,057,637.07 1.71% 1.18 Fund 705 -Dallas Stars Escrow Reserve Texpool N/A 100.0000 1,956,746.76 1,956,746.76 1,956,746.76 2.26% Texpool 705 1,956,746.76 3.17% 0.00 TOTAL PORTFOLIO 61,609,844.48 61,604,558.56 2,354,024.59 63,885,714.90 160,545.44 33,443.63 106,311.89 TOTAL 61,625,499.88 100.00°A 260.33 Investment Type LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Texpool Local Gov't Pool FHLB Fed. Horne Loan Bank TBILL Treasury Bill City of Euless Schedule of Purchases July 2008 Institution Vining Vining Sparks FSW First Southwest Coastal Coastal Securities Merrill Merrill Lynch Samco Samco Securities Duncan Duncan Williams UBS UBS Financial Services LOGIC Local Gov't Investment Coop. FGIC Financial Investors Trust Texpool TEXPOOL Cost Accrued Total P + I Cod Inv. Cusip Purchase Maturity Call Term Price Par Book Value Interest Total Yield To Coupon Interest Seller Maty Net of Total Cost Tvoe Number Date Date Date in days) Per 100 Value jPrin. Only) a mat'v Prin + Int Maturi Rate Purchased Inst. Discount Prete Fund Prem. Disc & Int R of Investment Texpool 07/01/08 100.0000 1250,000.00 1250,000.00 0.00 1250,000.00 2.33% Texpool Various 1,250,000.00 1,250,000.00 Texpool 07/02/08 100.0000 900,000.00 900,000.00 0.00 900,000.00 2.33% Texpool Various 900,000.00 900,000.00 Texpool 07/03/08 100.0000 81,292.75 81,292.75 0.00 81,292.75 2.26% Texpool Various 81,292.75 81,292.75 Texpool 07/10/08 100.0000 2,100,000.00 2,100,000.00 0.00 2,100,000.00 2.19% Texpool Various 2,100,000.00 2,100,000.00 Texpool 07/11/08 100.0000 1,200,000.00 1,200,000.00 0.00 1,200,000.00 2.16% Texpool Various 1,200,000.00 1,200,000.00 FNMA 3136F5DZ1 07/14/08 03/03/09 N/C 229 100.5200 1,000,000.00 1,005,200.00 36,000.00 1,036,000.00 2.77% 3.600% 13,100.00 Vining 5,200.00 240 1,017,700.00 1,018,300.00 Texpool 07/16/08 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 2.23% Texpool Various 1,000,000.00 1,000,000.00 FNMA 3136F5DZ1 07/23/08 03/03/09 N/C 220 100.4730 500,000.00 502,365.00 18,000.00 518,000.00 2.81% 3.600% 7,000.00 Vining 2,365.00 101 508,635.00 509,365.00 FHLB 3133XRVT4 07/28/08 07/28/09 N/C 360 100.0000 500,000.00 500,000.00 15,000.00 515,000.00 3.00% 3.000% Duncan 541 515,000.00 500,000.00 FHLB 3133XRUY4 07/29/08 01/29/10 01/29/09 540 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Duncan 102 524,375.00 500,000.00 FFCB 31331Y3S7 07/30/08 01/21/10 N/C 531 99.9500 500,000.00 499,750.00 22,875.00 522,875.00 3.08% 3.050% 381.25 FSW 250.00 541 522,493.75 500,131.25 FHLB 3133XRWC0 07/30/08 07/30/10 07/30/09 720 100.0000 500,000.00 500,000.00 36,500.00 536,500.00 3.65% 3.650% Coastal 103 536,500.00 500,000.00 TOTALS: 10,031,292.75 10,038,607.75 152,750.00 10,184,042.75 2.67% 20,481.25 250.00 7,565.00 10,155,996.50 10,059,089.00 LOGIC DIVIDENDS REINVESTED 0.15 0.15 0.15 0.15 TEXPOOL DIVIDENDS REINVESTED 22,434.80 22,434.80 22,434.80 22,434.80 FGIC DIVIDENDS REINVESTED 4,893.89 4,893.89 4,893.89 4,893.89 TOTAL INCLUDING DIVIDENDS: 10,058,621.59 10,065,936.59 152,750.00 10,184,042.75 10,183,325.34 10,086,417.84 City of Euless Schedule of Purchases August 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samoa Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Cost Accrued Total P + 1 @ Inv. Cusip Purchase Maturity Call Term Price Par Book Value Interest Total Yield To Coupon Interest Seller Maty Net of Total Cost Tvoe Number Date Date Date fin days) Per 100 Value jPrin. Only) fo? mat'y Prin + Int Maturi Rate Purchased Inst. Discount Premium Fund Prem. Disc & Int Pi of Investment Texpool 08/01/08 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 2.32% Texpool Various 1,000,000.00 1,000,000.00 Texpool 08/04/08 100.0000 81,292.75 81,292.75 0.00 81,292.75 2.30% Texpool Various 81,292.75 81,292.75 Texpool 08/08/08 100.0000 2,500,000.00 2,500,000.00 0.00 2,500,000.00 2.25% Texpool Various 2,500,000.00 2,500,000.00 FHLB 3133XRWG1 08/11/08 05/11/10 05/11/09 630 100.0000 500,000.00 500,000.00 31,500.00 531,500.00 3.60% 3.600% FSW 101 531,500.00 500,000.00 FNMA 3136F5MG3 08/15/08 03/30/09 N/C 225 100.4000 1,000,000.00 1,004,000.00 33,100.00 1,033,100.00 2.66% 3.310% 12,412.50 Samco 4,000.00 240 1,016,687.50 1,016,412.50 FNMA 31359MTZ6 08/15/08 02/15/09 N/C 180 100.2670 500,000.00 501,335.00 8,125.00 508,125.00 2.71% 3.250% Samco 1,335.00 505 506,790.00 501,335.00 FFCB 31331Y5M8 08/18/08 08/18/10 02/18/09 720 100.0000 500,000.00 500,000.00 35,700.00 535,700.00 3.57% 3.570% FSW 101 535,700.00 500,000.00 FHLB 3133XRXY1 08/19/08 02/19/10 02/19/09 540 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Duncan 101 524,375.00 500,000.00 FHLB 3133XRXY1 08/19/08 02/19/10 02/19/09 540 100.0000 500,000.00 500,000.00 24,375.00 524,375.00 3.25% 3.250% Coastal 610 524,375.00 500,000.00 FHLB 3133XRYL8 08/19/08 05/19/10 02/19/09 630 100.0000 500,000.00 500,000.00 29,531.25 529,531.25 3.38% 3.375% Coastal 101 529,531.25 500,000.00 FHLB 3133X9MF4 08/22/08 11/30/09 N/C 458 101.3460 400,000.00 405,384.00 24,600.00 424,600.00 3.01% 4.100% 3,735.56 Vining 5,384.00 552 415,480.44 409,119.56 FNMA 3136F9RN5 08/25/08 06/10/10 09/10/08 645 99.9375 500,000.00 499,687.50 33,750.00 533,750.00 3.41% 3.375% 3,515.63 Vining 312.50 101 530,234.37 503,203.13 FHLB 3133XS4P0 08/27/08 08/27/09 N/C 360 100.0000 500,000.00 500,000.00 15,000.00 515,000.00 3.00% 3.000% Samco 610 515,000.00 500,000.00 Texpool 08/29/08 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 2.32% Texpool Various 1,000,000.00 1,000,000.00 TOTALS: 9,981,292.75 9,991,699.25 260,056.25 10,241,349.00 2.93% 19,663.69 312.50 10,719.00 10,210,966.31 10,011,362.94 LOGIC DIVIDENDS REINVESTED 0.15 0.15 0.15 0.15 TEXPOOL DIVIDENDS REINVESTED 22,882.18 22,882.18 22,882.18 22,882.18 FGIC DIVIDENDS REINVESTED 5,140.69 5,140.69 5,140.69 5,140.69 TOTAL INCLUDING DIVIDENDS: 10,009,315.77 10,019,722.27 260,056.25 10,241,349.00 10,238,989.33 10,039,385.96 City of Euless Schedule of Purchases September 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Cost Accrued Total P + I Inv. Cusip Purchase Maturity Call Term Price Par Book Value Interest Total Yield To Coupon Interest Seller Maty Net of Total Cost lyoe Number Date Date Date fin days) Per 100 Value fPnn. Only) fc) mat'v Prin + Int Maturi Rate Purchased Inst. Discount Premium Fund Prem. Disc & Int Pr of Investment Texpool 09/04/08 100.0000 81,292.75 81,292.75 0.00 81,292.75 2.31% Texpool Various 81,292.75 81,292.75 FHLB 3133XS2F4 09/09/08 06/09/10 06/09/09 630 100.0000 1,000,000.00 1,000,000.00 56,875.00 1,056,875.00 3.25% 3.250% Coastal 310 1,056,875.00 1,000,000.00 Texpool 09/10/08 100.0000 700,000.00 700,000.00 0.00 700,000.00 2.31% Texpool Various 700,000.00 700,000.00 FHLB 3133XS5F1 09/10/08 09/10/10 09/10/09 720 100.0000 500,000.00 500,000.00 33,750.00 533,750.00 3.38% 3.375% Coastal 310 533,750.00 500,000.00 FHLB 3133XS5G9 09/12/08 03/12/10 03/12/09 540 100.0000 500,000.00 500,000.00 24,000.00 524,000.00 3.20% 3.200% FSW 240 524,000.00 500,000.00 FHLMC 3128X7W67 09/16/08 09/16/10 09/16/09 720 100.0000 500,000.00 500,000.00 36,250.00 536,250.00 3.63% 3.625% Samco 240 536,250.00 500,000.00 FHLB 3133XSDJ4 09/26/08 01/14/09 108 100.0000 500,000.00 500,000.00 4,875.00 504,875.00 3.25% 3.250% Coastal 320 504,875.00 500,000.00 FHLB 3133XSCS5 09/29/08 09/29/09 360 99.9022 500,000.00 499,511.00 15,000.00 515,000.00 3.10% 3.000% Duncan 489.00 615 515,000.00 499,511.00 TOTALS: 4,281,292.75 4,280,803.75 170,750.00 4,452,042.75 3.05% 0.00 489.00 0.00 4,452,042.75 4,280,803.75 LOGIC DIVIDENDS REINVESTED 0.15 0.15 0.15 0.15 TEXPOOL DIVIDENDS REINVESTED 17,946.19 17,946.19 17,946.19 17,946.19 FGIC DIVIDENDS REINVESTED 4,730.78 4,730.78 4,730.78 4,730.78 TOTAL INCLUDING DIVIDENDS: 4,303,969.87 4,303,480.87 170,750.00 4,452,042.75 4,474,719.87 4,303,480.87 City of Euless Schedule of Maturities July 2008 Investment Type Institution LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill Samco Samoa Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Term to Term to Cost Accrued Total P + I @ Inv. Cusip Purchase Maturity Call Mat'y Call Price Par Book Value Interest Total Prin. + Yield To Coupon Interest Seller Maty or call Net of Total Cost Tvoe Number Date Date Datein da s in da s 11 00 Value jPrin. Only) @a. mat'v/Call Int. (dMat'v Maturi Rate Purchased Inst. Discount Premium Fund Prem & Int Pur. of Investment FHLB 3133XPF82 02/01/08 07/01/08 N/C 150 -29 100.0000 1,000,000.00 1,000,000.00 11,875.00 1,011,875.00 2.85% 2.850% FSW 101 1,011,875.00 1,000,000.00 FHLB 3133XLCJ0 07/02/07 07/02/09 07/02/08 720 332 99.9750 500,000.00 499,875.00 26,875.00 526,875.00 5.39% 5.375% 0.00 Duncan 125.00 552 526,875.00 499,875.00 Texpool 07/03/08 100.0000 11,332.76 11,332.76 0.00 11,332.76 2.26% Texpool Various 11,332.76 11,332.76 FHLB 3133XPK29 02/06/08 07/08/08 N/C 152 -22 100.0000 500,000.00 500,000.00 5,700.00 505,700.00 2.70% 2.700% Duncan 615 505,700.00 500,000.00 FMAC 3128X6GD2 07/18/07 07/10/09 07/10/08 712 340 99.8750 500,000.00 499,375.00 26,500.00 526,500.00 5.37% 5.300% 588.89 Merrill 625.00 541 525,911.11 499,963.89 Texpool 07/14/08 100.0000 1,200,000.00 1,200,000.00 0.00 1,200,000.00 2.17% Texpool Various 1,200,000.00 1,200,000.00 FMAC 3128X1QW0 08/28/06 07/14/08 01/14/08 676 -16 95.7650 200,000.00 191,530.00 12,000.00 212,000.00 5.40% 3.000% 733.33 Coastal 8,470.00 310 211,266.67 192,263.33 Texpool 07/15/08 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 2.21% Texpool Various 1,000,000.00 1,000,000.00 FHLB 3133X8R61 04/12/07 07/15/08 N/C 453 -15 98.8610 300,000.00 296,583.00 21,787.50 321,787.50 5.10% 4.150% 6,121.25 Vining 3,417.00 502 315,666.25 302,704.25 FHLB 3133XP5G5 01/18/08 01/16/09 07/16/08 358 166 100.0000 1,000,000.00 1,000,000.00 17,305.56 1,017,305.56 3.50% 3.500% Samco 101 1,017,305.56 1,000,000.00 Texpool 07/22/08 100.0000 500,000.00 500,000.00 0.00 500,000.00 2.20% Texpool Various 500,000.00 500,000.00 FHLB 3133XLLG6 07/23/07 07/23/09 07/23/08 720 353 100.0000 500,000.00 500,000.00 27,000.00 527,000.00 5.40% 5.400% 0.00 Merrill 0.00 541 527,000.00 500,000.00 Texpool 07/28/08 100.0000 500,000,00 500,000.00 0.00 500,000.00 2.33% Texpool Various 500,000.00 500,000.00 FAMCA 31315PNA3 12/07/07 07/29/08 N/C 232 -1 99.9702 1,000,000.00 999,702.01 42,500.00 1,042,500.00 4.29% 4.250% 15,111.11 Coastal 297.99 101 1,027,388.89 1,014,813.12 FHLB 3133XPAN4 01/29/08 01/29/09 07/29/08 360 179 100.0000 500,000.00 500,000.00 7,625.00 507,625.00 3.05% 3.050% Duncan 540,601,101 507,625.00 500,000.00 FHLB 3133XPFF6 01/30/08 07/30/09 07/30/08 540 360 100.0000 1,000,000.00 1,000,000.00 15,250.00 1,015,250.00 3.05% 3.050% FSW 102,103 1,015,250.00 1,000,000.00 Texpool 07/31/08 100.0000 800,000.00 800,000.00 0.00 800,000.00 2.32% Texpool Various 800,000.00 800,000.00 TOTAL 11,011,332.76 10,998,397.77 175,668.06 9,675,668.06 3.51% 22,554.58 12,809.99 0.00 9,653,113.48 9,509,744.59 Investment Type LOGIC Local Gov't Pool FNMA Fed. Nati Mort. Assoc. FMAC Fed. Home Loan Mort. Corp FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bit City of Euless Schedule of Maturities August 2008 Institution Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Samco Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Term to Term to Cost Accrued Total P + 1 @ Inv. Cusip Purchase Maturity Call Maty Call Price Par Book Value Interest Total Prin. + Yield To Coupon Interest Seller Maty or cat Net of Total Cost Tvoe Number Date Date Datein da s in da s Per 100 Value jPrin. Only) Pa. mat'v/Call Int. (St Mat'y Maturi Rate Purchased Inst. Discount Premium Fund Prem & Int Pur. of Investment FHLB 3133XPEW0 02/01/08 08/01/08 N/C 180 -29 100.0000 1,000,000.00 1,000,000.00 14,000.00 1,014,000.00 2.80% 2.800% FSW 610 1,014,000.00 1,000,000.00 Texpool 08/11/08 100.0000 300,000.00 300,000.00 0.00 300,000.00 2.27% Texpool Various 300,000.00 300,000.00 Texpool 08/14/08 100.0000 608,000.00 608,000.00 0.00 608,000.00 2.31% Texpool Various 608,000.00 608,000.00 FHLB 3133X0LJ6 12/26/07 08/15/08 N/C 229 -15 99.7911 500,000.00 498,955.43 18,750.00 518,750.00 4.08% 3.750% 6,822.92 Coastal 1,044.57 505 511,927.08 505,778.35 FHLB 3133XPQW7 02/15/08 08/15/08 N/C 180 -15 100.0000 1,000,000.00 1,000,000.00 12,750.00 1,012,750.00 2.55% 2.550% FSW 330 1,012,750.00 1,000,000.00 Texpool 08/18/08 100.0000 250,000.00 250,000.00 0.00 250,000.00 2.32% Texpool Various 250,000.00 250,000.00 Texpool 08/19/08 100.0000 2,250,000.00 2,250,000.00 0.00 2,250,000.00 2.26% Texpool Various 2,250,000.00 2,250,000.00 Texpool 08/22/08 100.0000 600,000.00 600,000.00 0.00 600,000.00 2.28% Texpool Various 600,000.00 600,000.00 Texpool 08/25/08 100.0000 1,000,000.00 1,000,000.00 0.00 1,000,000.00 2.28% Texpool Various 1,000,000.00 1,000,000.00 Texpool 08/27/08 100.0000 650,000.00 650,000.00 0.00 650,000.00 2.29% Texpool Various 650,000.00 650,000.00 FHLMCC 313396D83 01/24/08 08/29/08 N/C 215 -1 98.5588 1,000,000.00 985,587.78 14,412.22 1,014,412.22 2.45% 2.380% Coastal 101 1,014,412.22 985,587.78 TOTAL 9,158,000.00 9,142,543.21 59,912.22 9,217,912.22 2.53% 6,822.92 1,044.57 0.00 9,211,089.30 9,149,366.13 Investment Type LOGIC Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FMAC Fed. Home Loan Mort. Corp FGIC Money Market Pool FFCB Fed. Farm Credit Bank CD Certificates of Deposit Texpool Local Gov't Pool FHLB Fed. Home Loan Bank TBILL Treasury Bill City of Euless Schedule of Maturities September 2008 Institution Vining Vining Sparks FSW First Southwest LOGIC Local Gov't Investment Coop. Coastal Coastal Securities Merrill Merrill Lynch FGIC Financial Investors Trust Samoa Samco Securities Duncan Duncan Williams Texpool TEXPOOL UBS UBS Financial Services Term to Term to Cost Accrued Total P + 1 @ Inv. Cusip Purchase Maturity 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 Date Datein da s in da s 100 Value fPrin. Only) @o. mat'v/Call Int. Cal Mat'v Maturity Rate Purchased Inst. Discount Premium Fund Prem 8 Int Pur. of Investment Texpool 09/02/08 100.0000 750,000.00 750,000.00 0.00 750,000.00 2.32% Texpool Various 750,000.00 750,000.00 Texpool 09/09/08 100.0000 650,000.00 650,000.00 0.00 650,000.00 2.32% Texpool Various 650,000.00 650,000.00 FHLB 3133XEZP7 12/21/07 09/12/08 N/C 261 -18 100.4156 200,000.00 200,831.20 10,000.00 210,000.00 4.40% 5.000% 2,750.00 FSW 831.20 330 206,418.80 203,581.20 FHLB 3133XASR9 04/12/07 09/15/08 N/C 513 -15 98.5300 250,000.00 246,325.00 15,000.00 265,000.00 5.08% 4.000% 750.00 Vining 3,675.00 505 264,250.00 247,075.00 FNMA 31359MTF0 11/14/07 09/15/08 N/C 301 -15 99.5890 250,000.00 248,972.50 9,375.00 259,375.00 4.25% 3.750% 1,536.46 Samco 1,027.50 507 257,838.54 250,508.96 FNMA 31359MTF0 01/11/08 09/15/08 N/C 244 -15 100.0000 1,000,000.00 1,000,000.00 37,500.00 1,037,500.00 3.74% 3.750% 12,083.33 Samco 310 1,025,416.67 1,012,083.33 FHLB 3133XGWK64 09/18/07 09/18/09 09/18/08 720 348 100.1430 300,000.00 300,429.00 30,960.00 330,960.00 5.01% 5.160% Duncan 429,00 330 330,531.00 300,429.00 FHLB 3133X13V7 04/12/07 09/30/08 N/C 528 98.7216 125,000.00 123,402.00 7,968.75 132,968.75 5.17% 4.250% 177.08 Duncan 1,598.00 615 132,791.67 123,579.08 Texpool 09/29/08 100.0000 600,000.00 600,000.00 0.00 600,000.00 2.32% Texpool Various 600,000.00 600,000.00 Texpool 09/30/08 100.0000 300,000.00 300,000.00 0.00 300,000.00 2.28% Texpool Various 300,000.00 300,000.00 FHLB 3133XNV48 12/28/07 09/30/09 09/30/08 632 360 100.0000 500,000.00 500,000.00 42,000.00 542,000.00 4.20% 4.200% Duncan 320 542,000.00 500,000.00 TOTAL 4,925,000.00 4,919,959.70 152,803.75 5,077,803.75 3.74% 17,296.87 6,300.50 1,260.20 5,059,246.68 4,937,256.57 Investment Maturities Ey Fund September -08 Fund# FDIC LOGIC TEXPOOL Oct -08 Nov -08 Dec -08 Jan -09 Feb -09 Mar -09 ADr-09 May09 Jun -09 Jul -09 Aua-09 Ssp 5 Oct -09 Nov -09 Dec -09 Jan -10 Feb -10 Mar -10 ADr-i0 Mav-10 Jun -10 Jul -10 Aug -10 Seo -10 Dec -11 Total 101 158,274.25 0.00 148,251.59 503,269.50 969,504.72 0.00 977,290.83 509,365.00 499,466.17 1,001,025.00 0.00 0.00 0.00 0.00 1,500,000.00 1,000,473.96 1,000,000.00 1,003,859.38 500,000.00 9,770,780.39 102 0.00 0.00 0.00 0.00 500,000.00 0.00 500,000.00 103 0.00 0.00 0.00 0.00 500,000.00 0.00 500,000.00 201 78,027.53 0.00 45,398.06 123,425.59 210 (0.00) 0.00 300,694.80 0.00 280,000.00 0.00 0.00 580,694.79 211 967,152.50 0.00 0.00 967,152.50 220 0.00 0.00 141,556.61 0.00 141,556.61 230 134,428.07 0.00 52,647.45 187,075.52 231 12,764.37 0.00 108,350.26 121,114.63 240 10,218.99 0.00 206,104.80 1,000,985.00 0.00 1,010,938.72 3,535,330.56 1,000,803.33 0.00 0.00 700,000.00 500,000.00 200,000.00 500,000.00 8,664,381.40 301 39,082.20 0.00 56,849.01 0.00 0.00 500,000.00 1,000,000.00 1,595,931.21 305 5,387.08 0.00 838,847.03 903,651.39 0.00 525,000.00 1,000,000.00 3,272,885.50 310 347,469.17 0.00 85,336.43 1,000,000.00 552,081.41 1,000,076.44 500,000.00 1,000,000.00 500,000.00 4,984,963.45 320 0.00 0.00 146,420.21 500,000.00 0.00 0.00 646,420.21 321 0.00 0.00 0.00 150,000.00 503,481.11 500,000.00 1,153,481.11 325 31,876.92 0.00 0.00 31,876.92 330 (0.00) 0.00 84,101.33 0.00 0.00 0.00 499,927.00 300,000.00 1,000,000.00 1,884,028.33 401 4,033.75 0.00 796.51 0.00 500,000.00 500,000.00 1,004,830.26 402 0.00 0.00 167,802.83 167,802.83 410 0.00 0.00 0.00 0.00 501 60,326.29 69.41 2,327.67 1,027,153.06 500,016.74 0.00 514,453.28 0.00 1,499,489.68 1,000,000.00 4,603,836.14 502 57,571.64 0,00 580,827.24 0.00 0.00 258,968.61 80,000.00 300,000.00 500,000.00 1,500,000.00 500,000.00 3,777,367.48 503 0.00 0.00 426,836.34 426,836.34 504 0.00 0.00 114,514.43 114,514.43 505 0.00 0.00 350,501.08 508,692.50 0.00 0.00 501,335.00 1,000,000.00 0.00 300,000.00 2,660,528.58 506 0.00 0.00 0.00 0.00 507 0.00 0.00 250,000.00 250,000.00 508 196,865.05 0.00 186,481.64 0.00 350,000.00 733,346.68 510 0.00 0.00 4,742.91 0.00 350,737.55 80,000.00 435,480.46 511 112,499.88 0.00 259,214.14 900,000.00 1,271,714.01 512 0.00 0.00 231,119.00 231,119.00 520 126,704.98 0.00 134,915.38 261,620.36 521 34,340.74 0.00 1,280.71 35,621.45 530 97,855.81 0.00 61.30 97,917.11 531 0.00 0.00 0.00 0.00 540 22,036.76 0.00 135,394.30 0.00 0.00 157,431.06 541 0.00 0.00 161,239.78 500,000.00 500,131.25 1,161,371.01 550 25,213.66 0.00 166,305.83 191,519.50 552 0.00 0.00 310,234.85 0.00 409,119.56 719,35441 601 93,746.06 0.00 367,002.65 0.00 530,729.45 0.00 200,000.00 1,191,478.16 610 34,361.82 0.00 214,292.86 0.00 1,010,961.81 0.00 0.00 580,683.33 500,000.00 0.00 519,510.42 500,000.00 366,371.92 3,726,182.16 615 185,488.06 0.00 19,397.95 0.00 80,000.00 499,511.00 784,397.01 705 0.00 0.00 1,956,777.03 1,956,777.03 710 0.00 0.00 0.00 0.00 Total 2,835,725.57 69.41 8,256,623.96 2,942,766.45 3,481,468.27 0.00 1,477,290.83 2,512,273.72 5,434,886.39 2,341,779.47 1,999,542.61 6,502,001.34 500,000.00 2,000,000.00 499,511.00 1,003,481.11 2,909,048.56 1,000,000.00 1,519,641.67 3,500,000.00 500,000.00 3,000,473.96 2,500,000.00 2,003,859.38 866,371.92 500,000.00 1,000,000.00 0.00 61,086,813.62 Om First Southwest Asset Management Economic Summary 3rd Quarter 2008 MAJOR EVENTS It's striking to contrast the economic events and outlook in July with the events and outlook at the end of September. At the beginning of the third quarter, there was ongoing debate about whether or not the U.S. economy was technically in a recession, but the primary concern of Fed officials was inflation. Crude oil prices topped $147 per barrel and the average gasoline price in the U.S. climbed to $4.16 by mid -month. Despite what appeared to be tepid economic growth, Fed officials were signaling that the next likely change in monetary policy would be a tightening, although most experts were calling for this rate increase to occur sometime in early 2009. The first signs of the trouble to come emerged on July 7th when a Lehman analyst issued a report that said FASB was considering an accounting rule change that would force Fannie and Freddie to move certain off-balance sheet securities onto their balance sheet, an action that would force the two mortgage giants to raise a combined $75 billion in new capital. The Wall Street Journal ran front page stories all week which rattled global investor confidence. Fed Chairman Bernanke responded promptly by opening the Fed discount window to both companies, allowing them unlimited borrowing capacity at the prevailing discount rate of 2.25%. Not to be outdone, Treasury Secretary Henry Paulson, the former CEO of Goldman Sachs, who would become a household name before the quarter ended, announced that he'd ask Congress for expedited authority to increase Fannie and Freddie's $2.25 billion dollar lines of credit. He also said that the government would make an equity investment in the companies if needed. Paulson hoped that the promise to help would be enough. He told the Senate Banking Committee "If you have a bazooka in your pocket and people know it, you probably won't have to use it." Unfortunately, these dramatic moves and bold words did little to restore investor confidence. Rampant speculation that Fannie and Freddie were on the verge of collapse dominated financial market headlines for much of the quarter. A year ago, Henry Paulson had said that the U.S. subprime mortgage fallout remained largely contained due to the strongest global economy in decades. This statement would come back to haunt him. The old economic adage "when the U.S. sneezes, the world catches a cold" was generally thought to be a remnant of days gone by, but it became apparent by mid-August that the mortgage woes of the U.S. were no longer contained within its boundaries. The Wall Street Journal reported on August 15th that GDP in the European Union had fallen at an annual rate of 0.8% in the second quarter, the first outright contraction since the early 1990's. The previous day, Japan had reported that its economy had fallen at a 2.4% annual rate. Four of the five largest economies were now flirting with recession. The upside to the sudden global slump was that the U.S. dollar quickly strengthened, helping deflate a troubling commodities bubble. Interestingly enough, the long -anticipated U.S. recession had not yet materialized. In fact, at the end of August, the Commerce Department reported that second quarter GDP was being revised upward from 1.9% to 3.3%, prompting one economist to note that "the economy has never looked so good and felt so bad". The minutes of the August FOMC meeting clearly indicated that the next Fed move would be a tightening. So, as August drew to a close, it still appeared that rate increases were on the horizon. The events of September would change all of that in a hurry. On Sunday, September 7th, under mounting pressure from nervous foreign investors, Paulson fired his bazooka and announced that the U.S. government was placing Fannie and Freddie into conservatorship and would gradually inject up to $200 billion of capital to keep them afloat. A week later, Lehman Brothers reported that it was unable to orchestrate a deal to save the 158 - year old investment banking firm from financial ruin and would be forced into Chapter 11 bankruptcy. Most experts had assumed that Lehman would be sold to Bank of America, but BOA threw Lehman a last minute curve and bought Merrill Lynch for $50 billion instead. The idea that the government would allow Lehman to fail came as a major shock, even to those clamoring for Wall Street blood. The DOW plunged 500 points on Monday, September 8th in reaction to the biggest bankruptcy filing in U.S. history, but the impact of Lehman's failure had just begun. The next day, one of the oldest and largest AAA -rated money market funds in the world, the Reserve Primary Fund, announced that it had "broken the buck" as a result of a $785 million dollar investment in Lehman commercial paper that it now considered to be virtually worthless. Fund investors were told that they'd receive $0.97 per share on the Primary Fund, a 3% immediate loss on an investment considered virtually risk-free. This shocking revelation prompted an unprecedented $89 billion run away from money funds, but collateral damage certainly wasn't limited to the money funds. Lehman listed total bonds outstanding of $155 billion in its Chapter 11 filing and the New York Times reported that Lehman was one of the 10 largest counter -parties in credit default swaps which by Lehman's own accounting records amounted to $729 billion in derivative purchases and sales. The pain of default was scattered worldwide and investors demanded huge premiums for the debt of all U.S. financial institutions. Banks were scared to lend to banks. Other financial institutions began to teeter and the New York Times suggested that if AIG, the nation's largest insurance company, didn't receive an immediate injection of cash, it could fail within the week. Later that day, the U.S. government seized control of AIG, taking a 79.9% ownership share in return for an $85 billion loan. Former Fed Chairman Greenspan, appearing on ABC News, described the economic crisis as the worst he had ever seen. On Friday, September 19th, Bernanke and Paulson revealed plans for legislation to support the biggest financial rescue plan in history - an estimated $700 billion of taxpayer support that would involve government purchases of distressed mortgages and other illiquid investments with the intent to hold onto the investments until maturity or orderly sale. The Treasury Department also announced that it would use existing authority to establish a temporary guaranty program for U.S. money market funds in order to reassure investors that these funds would not break the buck. Also on Friday, the SEC, acting in concert with the Financial Services Authority of Britain, temporarily banned the short selling of financial stocks, effective immediately. Initially, the announcements, aimed at stabilizing the markets and restoring investor confidence, seemed to do exactly that as the DOW shot up nearly 370 points, but the proposed "bailout plan" was subsequently dissected and severely criticized by the media and within days the public outcry was deafening. On Monday, September 22nd, Goldman Sachs and Morgan Stanley announced plans to convert themselves into bank holding companies, which would essentially grant them critical sources of funding in return for heavier regulatory oversight. The next day, Bernanke and Paulson unveiled details of the actual "rescue plan" and the media circus pitched a tent. MSNBC ran continual coverage of the "Bailout Battle in Congress". Bernanke and Paulson pleaded for quick implementation while Congress demanded ample details before committing to a massive and undefined outflow of tax dollars. Warren Buffet labeled the plan "absolutely necessary" to pull the financial system out of an "economic Pearl Harbor" and President Bush addressed the nation saying that "the entire economy was in danger" and without passage, "the nation could face a long and painful recession". By week's end, with no bill passed, amid a severe ongoing credit crunch and confidence crisis, Washington Mutual, with $300 billion in assets, was seized by the FDIC and sold to JP Morgan for the bargain price of $1.9 billion, thus becoming the biggest bank failure in U.S. history. On Monday, September 29th, the House narrowly rejected a compromise version of the rescue bill. The equity markets were absolutely crushed in response with the DOW falling by 7% or 778 points, the largest one -day point drop in history. The S&P fell 8.4% and the NASDAQ fell a frightening 200 points or 9%. Bloomberg reported that $1.2 billion in equity value was wiped out in a single day. In a remarkable flight -to -quality, yields on one- month Treasury -bills fell to 1/20th of 1%. Wachovia Bank became the latest victim to succumb to the credit crisis when the FDIC arranged a $2.2 billion dollar Citigroup purchase that would be trumped by Wells Fargo a few days later. The quarter ended with no rescue plan on the table, frozen credit markets and shattered investor confidence. 1400 1300 - 1200 - 1100 - 0 1000 - E 800 - ousin • - Existing Home Sales - New Home Sales 8.00 - 7.50 7.00 6.50 6.00 q 5.50 5.00 4.50 - 4.00 400 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 t 1 1 1 1 1 1 1 3.50 to T O K 0 K D New and Existing Home Sales Annualized by Month The spark that ignited the crisis was falling home prices resulting from rising home inventories that were fueled primarily by sub -prime and alt -A loan defaults. According to the Mortgage Bankers Association, the delinquency rate on mortgage loans in the second quarter was 6.4% and the foreclosure rate was 2.75%. Those who thought a bottom had been reached during the spring were disappointed to learn that the freefall hadn't yet ended. The S&P Case Shiller home price index dropped by 16.3% year -over - year in July,the fastest decline in history and the 18th consecutive monthly decrease. New home sales plunged 11.5% in August while existing homes fell another 2.2%. From the peak in summer 2005, new and existing home sales had fallen 62%. The supply of homes stood at 10.9 months, near a record high. Housing starts fell by 6.2% in August to the lowest level since 1991. A stable housing market is the essential ingredient for economic recovery, but it'll take a while. The pool of potential buyers has dried up. 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 E m • o ment nem ployment Rate (Left Hand Scale) Change in Non•Farm Payrolls (Right Hand Scale) uu 0 Change in Nonfarm Payrolls Unemployment Rate Non -Farm Payroll Total Change in Thousands 200 150 100 50 0 -50 -100 -150 -2 The labor market has been shedding jobs all year, and the third quarter offered no relief. Non-farm payrolls lost 73,000 jobs in August and 159,000 in September as the unemployment rate rose from 5.7% to 6.1%. Only six months earlier, unemployment had stood at 4.8%. It's very difficult to imagine that the labor picture will brighten any time soon as the economy has taken a drastic turn for the worse since the last data release. 1 n ation There were few bright spots to speak of last quarter, but the drastic drop in inflation was much welcomed. Overall CPI fell by 0.1% in August, the first outright decline in almost two years, while PPI fell 0.4%, the first decline this year. Crude oil fell from a record high of $147 to $100 by quarter end, while gasoline prices dropped by$0.60 per gallon. Other commodity prices also declined significantly as global demand slowed, the dollar strengthened and speculators exited the market. The drop in inflation grants the Fed the latitude to cut interest rates to prop up the sagging economy. s toc ! ar et The terrible year for equities continued in the third quarter as the S&P 500 and NASDAQ fell by nearly 9% and the battered DOW dropped 4.4%. Market confidence is critical to investment in the stock market, and the rash of recentfailures has spooked investors to the point that virtually all companies are suspect. With a bear market firmly established and what could be a severe recession on the horizon, keeping remaining principal intact has become a primary objective. Compounding the U.S. problem are struggling equity markets around the world. It's all about confidence, and right now, it's gone. 6/30/08 9/30/08 % Change for Q3-2008 DOW 11,350 10,850 -4.40% S&P 500 1,281 1,166 -8.98% NASDAQ 2,293 2,092 -8.77% 1 nterest - ates Last High 6/30/08 Fed 3 mo 6 mo 2 yr 3 yr 10 yr Funds T-bill Tbill T note T note T note 2.00% 1.74% 2.16% 2.62% 3.33% 3.97% 1.87% 2.17% 2.79% 3.52% 4.13% Low End 9/30/08 0.09% 0.86% 1.58% 2.37% 3.26% 2.00% 0.53% 1.46% 1.71% 2.75% 3.63% S ummar • ut oo It's nearly impossible to find anything positive during a quarter in which the financial world fell off its axis. During much of July and August, the U.S. economy limped along, if not in recession, perched precariously on the edge. The housing situation actually got worse with new home sales tumbling by another 11.5% in August. Auto sales fell by a whopping 27% in September, the biggest drop in 17 years. The September ISM manufacturing index fell to a dismal 43.5, a level consistent with recession. Job losses continue to mount, with a net 760,000 workers receiving pink slips since the year began. But the pitiful economic data releases were largely overlooked as the credit crisis intensified and financial institutions suddenly found themselves unable to finance their operations. Fannie Mae and Freddie Mac, under intense fire throughout the quarter, entered conservatorship of the U.S. government in September. Lehman Brothers Holdings failed to find a buyer and was forced into bankruptcy. The resulting default of hundreds of billions of dollars in Lehman debt obligations caused immense market turmoil and set in motion a wave of deteriorating investor confidence that would shape the market for weeks. One of the largest and oldest AAA -rated money market funds, saddled with $785 million in worthless Lehman CP, "broke the buck" and froze fund assets, losing investor principal along with faith in what they'd thought was a safe haven for cash. The month of September was littered with spectacular failures of some of the nation's iconic companies. The Federal government, recognizing itself as a lender of last resort and perhaps realizing that the Lehman failure was the lynchpin to the latest global market catastrophe, offered a plan to Congress that would use $700 billion in taxpayer funds to purchase troubled mortgage assets and other problem investments in order to stabilize the markets and restore confidence. But the poorly framed "bailout" bill was voted down by an angry Congress and the DOW responded by tumbling a record 778 points. After this, the bill was increasingly referred to as a "rescue plan". At quarter end, the financial markets were in trouble, with confidence badly shaken, credit markets locked up and investors shaking their fists at the Federal government. With inflationary pressure quickly easing, it appeared as if an emergency Fed rate cut was eminent. As itturned out, on October 8th, the Fed did slash overnight rates by half a point to 1.50% and indicated that it was prepared to cut further if necessary. And in fact, that's exactly what the experts are forecasting. At last count, Goldman, Merrill, UBS, HSBC, JP Morgan, Barclays, Bank of America, Suntrust and Wachovia were among a large group of dealers expecting the Fed to cut to 1.00%. Unfortunately, rate cuts just don't seem to be having the accustomed effect. For the financial markets and the U.S. economy to gain traction and pull themselves out, it will take a big dose of confidence, a lot of faith ...and time. Scott McIntyre, CFA Senior Portfolio Manager October 9, 2008