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About This Quarterly Financial Report

This report has been prepared by the City of Denton’s Finance Department. The Quarterly Financial Report is intended to provide our users (internal and external) with information regarding the City’s financial position and economic activity. This report includes information for the quarter ending September 30, 2018. This report is presented in six sections. 1. The Executive Dashboard section contains a high level

summary of the major operating funds using graphic illustrations and key economic indicators. Narrative disclosures are also included to highlight any significant changes or fluctuations.

2. The Financial Summary section reports the performance of the

major operating funds of the City. In addition, the report provides an end of year projection and a comparison to the budget for major revenue sources and expenditure items.

3. The Revenue & Economic Analysis section provides additional

analysis regarding key revenue sources and economic indicators.

4. The Quarterly Investment Report provides a summary of the

City’s investment portfolio, interest earnings and a brief market outlook.

5. The Performance Report provides Key Performance Indicators (KPIs) for each of the goals identified in the City’s strategic plan. In addition, the progress on Key Action Steps are highlighted.

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The Quarterly Financial Report is intended to provide our users with timely and relevant information. Please provide us with any comments or suggestions you may have. If you would like additional information, feel free to contact me.

Antonio Puente, Jr Chief Financial Officer 215 East McKinney Street Denton, TX 76201 940-349-8260

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OBeJoyful,DentonFestivalFoundationatQuakertownPark

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Section 1

City of Denton Quarterly Financial Report

September 2018

Executive Dashboards

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Note: All figures presented are in millions of dollars.

FY 2017-18 FY 2017-18ANNUAL PRELIMINARY FY 2017-18

DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEBeginning Fund Balance as of 09/30/17 28.17$ 31.77$ RESO URCES: Ad Valorem Taxes 44.87 44.86 0% Sales Tax 39.45 38.27 -3% Franchise Fees 4.98 4.98 0% O ther Taxes 0.49 0.49 0% Service Fees 7.96 7.52 -6% Fines and Fees 3.71 3.52 -5% Licenses and Permits 3.75 3.74 0% Miscellaneous Revenue 2.10 2.02 -4% Transfers In 16.04 16.31 2%Total Revenues 123.35 121.71 -1%Total Resources 151.52 153.48 EXPENDITURES: Personal Service 84.14 83.15 -1% Material and Supplies 3.16 2.68 -15% Maintenance and Repairs 3.10 2.72 -12% Insurance 1.21 1.21 0% Miscellaneous 1.16 1.10 -5% O perations 14.84 15.46 4% Transfers O ut 15.86 16.31 3% Fixed Assets 0.56 0.62 11%Total Expenditures 124.03 123.25 -1%Net Income (Loss) (0.68) (1.54) Ending Fund Balance 27.49$ 30.23$

City of Denton, Texas General Fund Executive Dashboard

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Revenue & Expenses (in Millions)YTD Revenue YTD Expenses

Key TrendsSales Tax revenues are $1.18M lower than expected. Service Fees revenues are $0.44M lower than expected mainly due to Ambulance Service Fees and Recreation Service Fees.Personal Service expenditures are $0.99M lower than expected due to position savings.Operations expenditures are $0.62M higher than expected mainly due to Chapter 380 agreements. $‐

$0.5

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$3.5Sales Tax Monthly Average by Quarter

1Annual budget reflects year‐end estimate presented to the City Council. Approved year‐end budget was $125,401,473 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.

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City of Denton, Texas Electric Fund Executive Dashboard

DESCRIPTIO N

FY 2017-18 ANNUAL BUDGET 1

FY 2017-18 PRELIMINARY

ACTUALS FY 2017-18 VARIANCE

Beginning Working Capital and Reserves as of 9/30/17 72.51$ 76.94$ RESO URCES: Rate Revenues 142.25 156.49 10% Transmission Revenue 34.91 34.23 -2% O ther Revenues 6.01 7.06 17%Total Revenues 183.17 197.78 8%Total Resources 255.68 274.72 EXPENDITURES: Purchased Power 67.51 79.98 18% DEC Fuel 9.05 2.17 -76% Transmission of Power 5.58 11.94 114% Personnel Service 19.15 16.25 -15% O peration and Maintenance 25.04 21.58 -14% Debt Service 34.36 34.36 0% Transfers O ut 12.36 11.97 -3% Capital O utlay 24.11 25.04 4%Total Expenditures 197.16 203.29 3%Net Income (Loss) (13.99) (5.51)

Ending Working Capital and Reserves 58.52$ 71.43$

$0

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$250Revenue & Expenses (in Millions)

YTD Revenue YTD Expense

Key TrendsRevenues are 8% higher than budgeted. Rate Revenues are $14.2 million higher than budgeted. TCOS Revenue is $0.7 million less than budgeted.Purchased Power and DEC Fuel expenditures combined is $5.6 million more than budgeted.Transmission of Power is $6.4 million higher than expected due to a TCOS adjustment.Operations and Maintenance expenditures are 14% or $3.5 million less than budgeted as a result of licenses, consultants, attorney fees, travel and training, and advertising expenditures being lower than expected. A budget amendment was approved in the final fiscal year quarter in the amount of $24 million to cash fund the CIP and is included in Capital Outlay. As of 9/30/18, preliminary working capital was $16.26 million, and the rate stabilization reserve was $55.17 million.Additionally, Electric had an over collected Energy Cost Adjustment (ECA) of $4.1 million.

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2013 – 2018 Historical Quarterly GWH Sales

1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $204,903,753 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.

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DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/172 20.85$ 23.34$ RESO URCES: Water Sales 36.89 40.59 10% O ther Water Revenues 0.96 1.77 84% Transfers In 5.81 5.47 -6% Impact Fee Revenue 3.76 3.75 0%Total Revenues 47.42 51.58 9%

Total Resources 68.27 74.92

EXPENDITURES: Personal Service 10.22 9.98 -2% O perations, Services 10.77 9.71 -10% Capital O utlay 9.17 11.75 28% Debt Service 12.64 12.64 0% Transfers O ut 4.23 3.48 -18%Total Expenditures 47.03 47.56 1%Net Income (Loss) 0.39 4.02 Ending Working Capital and Reserves 21.24$ 27.36$

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2013‐2018 Historical Quarterly Gallons Sold (in Millions)

City of Denton, Texas Water Fund Executive Dashboard

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YTD Revenue YTD Expenses

Key TrendsWater Sales include $2 million in resale of raw water to Upper Trinity Water District. Personal Service expenses are below budget due to position vacancies.Operations, Services are below budget due to reduced materials & supplies and outside services expenses.Capital Outlay expenditures include a transfer in September of $6,878,000.1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $47,809,321 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $6.7M of Impact Fee Reserves and $0.25 million for Development Plan Line Reserves.

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FY 2017-18 FY 2017-18ANNUAL ANNUAL FY 2017-18

DESCRIPTIO N BUDGET 1 PRO JECTIO N VARIANCEBeginning Working Capital and Reserves as of 09/30/172 15.93$ 17.86$ RESO URCES: Wastewater Fees 24.23 25.25 4% O ther Wastewater Revenue 1.78 1.93 8% Drainage Fees 4.65 4.79 3% Transfer In 0.66 0.66 0% Impact Fee Revenue 2.00 2.00 0%Total Revenues 33.32 34.63 4%

Total Resources 49.25 52.49 EXPENDITURES: Personal Service 7.62 7.43 -2% O perations, Services 8.24 7.17 -13% Capital O utlay 7.10 8.63 22% Debt Service 7.17 7.17 0% Transfer O ut 3.20 3.18 -1%Total Expenditures 33.33 33.58 1%

Net Income (Loss) (0.01) 1.05 Ending Working Capital and Reserves 15.92$ 18.91$


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2013‐2018 Historical Quarterly Gallons Billed (in Millions)

City of Denton, Texas Wastewater Fund Executive Dashboard

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Key TrendsOperations, Services are under budget due to lower materials & supplies and outside services costs.Capital Outlay expenditures include a transfer in September of $4,238,650, of which $925,000 was related to higher than anticipated drainage fees.1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $34,023,041 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital balance excludes $2.2 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.33 million for Development Plan Line Reserves.

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DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEREVENUES: Residential Drainage Fees 1.79$ 1.82$ 2% Nonresidential Drainage Fees 2.86 2.97 4% Wastewater Resources 0.10 - -100% General Fund Transfer 0.42 0.42 0%Total Revenues 5.17 5.21 1%

EXPENDITURES: Personal Service 1.55 1.52 -2% O perations, Services 0.76 0.57 -25% Capital O utlay 1.56 1.86 19% Debt Service 0.68 0.68 0% Transfer O ut 0.62 0.58 -6%Total Expenditures 5.17 5.21 1%

Net Income (Loss) -$ -$


City of Denton, Texas Drainage Operations Executive Dashboard

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Revenue & Expenses (in Millions)


Key Trends

Operations, Services are under budget due to lower materials & supplies and outside services costs.Capital Outlay expenditures include a transfer in September of $925,000.

1Annual budget reflects year‐end estimate presented to City Council. Approved year‐end budget was $5,141,036 for expenditures.

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DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEBeginning Working Capital

and Reserves as of 09/30/172 8.15$ 9.47$ RESO URCES: Collection & Disposal 32.63 32.49 0% Recycling 0.78 0.81 4% O ther Revenue 0.70 1.49 113%Total Revenues 34.11 34.79 2%

Total Resources 42.26 44.26 EXPENDITURES: Personal Service 10.51 10.31 -2% O perations, Services 9.18 9.31 1% Capital O utlay 1.97 2.15 9% Debt Service 9.54 9.54 0% Transfer O ut 3.74 3.66 -2%Total Expenditures 34.94 34.97 0%

Net Income (Loss) (0.83) (0.18) Ending Working Capital and Reserves 7.32$ 9.29$

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Refuse Tonnage Recycling Tonnages

Residential Curbside Collection Tonnage


City of Denton, Texas Solid Waste Fund Executive Dashboard

Key TrendsOther Revenue is greater than expected due to auction sale of equipment.Capital Outlay is higher than expected due to increased transfers to capital projects. 0

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Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per Week

Commercial Refuse Commercial Recycling1Annual budget reflects year‐end estimate presented to the City Council. Approved year‐end budget was $39,302,768 for expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017‐18 budget process.2The Beginning Working Capital and Reserves excludes $8.65 million of Landfill Closure/Post Closure reserves.

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City of Denton, Texas Airport Fund Executive Dashboard

Key TrendsFBO Commissions include a one‐time collection of $55,000 not originally included in budget.Personnel Service Expense are less than budget due to vacant positions.Operations, Services expense is less than budget due to lower that expected expenditures on Maintenance and Repair, and utilities.Gas Well Royalty revenues are less than budget due to lower gas production and declining natural gas prices.

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GAS WELL REVENUE(in millions of dollars by fiscal year)

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AIRPORT OPERATIONS BY QUARTER(takeoff or landing)

Note: All financial amounts presented are in millions of dollars.


DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/17 2.47$ 2.75$ RESO URCES: Airport Ground Leases 0.71 0.78 10% FBO Commissions 0.20 0.29 45% Miscellaneous 0.09 0.10 11%Total O perating Revenues 1.00 1.17 17%EXPENDITURES: Personal Service 0.53 0.49 -8% O perations, Services 0.41 0.25 -39% Transfer O ut 0.55 0.52 -5%Total O perating Expenditures 1.49 1.26 -15%

Net O perating Income (Loss) (0.49) (0.09) NO N-O PERATING REVENUES: Investment Income 0.03 0.07 133% Gas Well Royalties 0.47 0.41 -13%Total Non-O perating Revenues 0.50 0.48 -4%

NO N-O PERATING EXPENDITURES: Transfer O ut - Capital 0.22 0.22 0%Total Non-O perating Expenditures 0.22 0.22 0%Net Non-O perating Income (Loss) 0.28 0.26

Net Income (Loss) (0.21) 0.17

Ending Working Capital and Reserves 2.26$ 2.92$

1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2017‐18 budget process.

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DESCRIPTIO N BUDGET 1 ACTUALS VARIANCEBeginning Working Capital

and Reserves as of 09/30/2017 1.25$ 1.16$ RESO URCES: Franchise Fees 12.47 12.74 2% Street Cuts 0.36 0.29 -19% Investment Income 0.01 - -100% Transfers In 1.12 1.15 3%Total Revenues 13.96 14.18 2%

Total Resources 15.21 15.34

EXPENDITURES: Personal Service 3.44 3.24 -6% Materials & Supplies 0.09 0.09 0% Maintenance & Repairs 6.61 6.73 2% O perations, Services 0.89 0.79 -11% Transfer O ut 2.93 2.87 -2%Total Expenditures 13.96 13.72 -2%Net Income (Loss) - 0.46

Ending Fund Balance 1.25$ 1.62$

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount

which was estimated in the FY 2017-18 budget process.

City of Denton, Texas Street Improvement Fund Executive Dashboard

Key Trends

Street Cuts are under budget due to lower utility cut repairs.Surface treatments for the year were scheduled in the 4th quarter.


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Tons of Asphalt Laid (in Thousands)

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Lane Miles Surface Treatment

FY 16-17 FY 17-18

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Revenue & Expenses (in Millions)


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FY 2017-18 FY 2017-18

GRANT PRELIMINARY FY 2017-18

DESCRIPTIO N AMO UNT ACCTUALS VARIANCE2017-18 Budget 1

Comm Development 2.94$ 1.24$ -58% Public Safety 0.80 0.53 -34% Transportation 95.14 20.28 -79% O ther 0.03 0.03 0%Total Budget 98.91 22.08 -78%

New Awards 1

Comm Development 0.60 0.50 -17% Public Safety 0.69 0.52 -25% Transportation 3.40 0.28 -92% Parks & Recreation 0.21 0.21 0% O ther 0.21 0.13 -38%Total New Awards 5.11 1.64 -68%

Totals 104.02$ 23.72$ -77%

COMM DEV3.40%

PUBLIC SAFETY1.42%

TRANS94.73%

PARKS & REC0.21%

OTHER0.24%

FY 2017‐18 Grants Awarded

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FY 2017‐18 Awards & Expenses (in Millions)

Key Trends

The following grants have been received in FY 2017-18: Emergency Solutions Grant: $600,000Federal Equitable Sharing: $31,315Chapter 59 Asset Forfeitures: $169,399U.S. Marshals Violent Offenders Task Force: $25,663Law Enforcement Officer Education:$17,151Sexual Assault Examiners Reimbursement:$47,8722017 SHSP Ballistic Blankets: $3,0002017 SHSP Night Vision: $14,2002017 UASI Command Data: $30,000Body Armor Grant Program: $91,692

2018 SHSP SWAT Equipment Enhancement: $24,000Domestic & Sexual Violence Initiative: $225,000Organized Crime Drug Enforcement: $9,037Transportation Projects: $3,399,191NW Trail Extension Grant: $212,273Interlibrary Loan Program: $32,149TIFMAS Training Grant: $11,275Historic Preservation-CLG Grant:$1,939Texas Parks & Wildlife-CCNHC: $199,613

City of Denton, Texas Grants Dashboard

Note: All figures presented are in millions of dollars.1 This grant amount will be spent over several years and the fiscal year 2017-18 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.

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Section 2


September 2018

This report is designed for internal use and does not include all the funds and accounts included in the City of Denton’s operations. The information provided is unaudited; for a complete audited report, please refer to the City of Denton Comprehensive Annual Financial Report, available through the City’s Finance Department, City Secretary’s Office, or Denton Public Libraries.

FINANCIAL SUMMARY

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City of Denton General FundSchedule of Revenues - Budget vs Actuals (Unaudited)For the Period Ended September 30, 2018

PRIOR ANNUAL PRELIMINARY BUDGET VS

REVENUE DESCRIPTION Y-T-D BUDGET1

ACTUALS ACTUALS

Current Year - Ad Valorem 43,191,856$ 44,460,191$ 44,411,291$ 0%

Delinquent - Ad Valorem 192,136 100,000 127,769 28%

Miscellaneous Penalties & Fees 334,007 309,285 318,650 3%

Ad Valorem Taxes 43,717,999 44,869,476 44,857,710 0%

Sales Tax 36,841,138 39,452,935 38,270,025 -3%

Franchise - Gas Utilities 485,262 342,739 342,739 0%

Franchise - Private Electric Utilities 138,651 122,750 122,750 0%

Franchise - Cable 546,133 480,873 480,873 0%

Franchise - Telecom 248,970 233,956 233,956 0%

Franchise - Denton Municipal Utilities 4,187,833 3,804,531 3,804,531 0%

Franchise Fees 5,606,849 4,984,849 4,984,849 0%

Other Taxes 481,295 491,400 493,461 0%

Ambulance Service Fees 3,677,533 3,380,800 3,288,454 -3%

Fire Department Fees 160,241 196,000 219,715 12%

Building Inspections Fees 505,954 532,247 591,916 11%

Park Department Fees 1,889,115 2,298,651 1,957,227 -15%

Planning Department Fees 960,030 998,065 982,744 -2%

Reprographics Fees 349,048 370,160 325,501 -12%

Miscellaneous Service Fees 118,306 183,015 147,805 -19%

Service Fees 7,660,227 7,958,938 7,513,362 -6%

Denton Municipal Fines 1,511,112 1,482,000 1,432,420 -3%

Parking Fines 254,705 260,000 227,670 -12%

Miscellaneous Fines and Fees 903,383 889,000 846,873 -5%

Court Administrative and Service Fees 977,287 1,080,000 1,016,104 -6%

Fines and Fees 3,646,487 3,711,000 3,523,067 -5%

Demolition Permits 5,890 7,670 5,320 -31%

Building Permits 2,889,363 3,638,055 3,638,497 0%

Certificate of Occupancy 74,290 72,829 71,575 -2%

Miscellaneous Licenses and Permits 47,153 32,278 24,298 -25%

Licenses and Permits 3,016,696 3,750,832 3,739,690 0%

Investment Income 371,305 460,600 514,938 12%

Miscellaneous Revenues 1,775,486 1,635,243 1,502,402 -8%

Miscellaneous Resources 2,146,791 2,095,843 2,017,340 -4%

ROI - Denton Municipal Utilities 7,506,361 7,987,758 8,278,398 4%

Transfers 8,140,385 8,050,688 8,036,527 0%

Transfers 15,646,746 16,038,446 16,314,925 2%

Total General Fund Revenues 118,764,228$ 123,353,719$ 121,714,429$ -1%

1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget is $119,720,372.

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City of Denton

General Fund

Schedule of Expenditures - Budget vs Actuals (Unaudited)

For the Period Ended September 30, 2018


Y-T-D BUDGET1

ACTUALS ACTUALS

NEIGHBORHOOD SERVICES

Building Inspections 2,858,490$ 3,071,315$ 2,796,226$ -9%

Community Improvement Services 1,629,488 1,564,294 1,461,586 -7%

Libraries 5,710,917 6,064,112 5,742,354 -5%

Parks and Recreation 12,476,932 13,971,655 13,353,602 -4%

Planning 3,068,235 3,415,509 2,977,515 -13%

Gas Well Review 168,703 393,026 407,229 4%

Social Services 567,064 629,738 639,312 2%

26,479,829 29,109,649 27,377,824 -6%

PUBLIC SAFETY

Animal Services 1,407,977 1,559,205 1,531,051 -2%

Fire 26,492,706 28,876,353 29,570,384 2%

Municipal Court 1,290,483 1,381,702 1,233,130 -11%

Municipal Judge 381,877 436,124 403,188 -8%

Police 29,253,126 32,297,806 31,583,773 -2%

58,826,169 64,551,190 64,321,526 0%

TRANSPORTATION

Traffic Operations 1,931,432 4,042,028 3,975,051 -2%

Transportation Operations 478,853 796,658 626,389 -21%

Street Lighting 787,441 755,000 801,318 6%

3,197,726 5,593,686 5,402,758 -3%

ADMINISTRATIVE & COMMUNITY SERVICES

Cable Television 301,806 323,271 315,519 -2%

City Manager's Office 2,661,176 2,829,303 2,994,797 6%

Economic Development 3,876,800 3,353,387 3,435,777 2%

Facilities Management 4,011,319 4,324,642 4,111,625 -5%

Finance 2,811,695 3,074,420 2,991,561 -3%

Human Resources 1,580,740 1,755,865 1,755,565 0%

Internal Audit 137,540 263,381 370,105 41%

Legal Administration 2,115,591 2,453,772 2,038,336 -17%

Public Communications Office 457,378 495,021 410,946 -17%

Reprographics 425,021 433,646 374,981 -14%

Non-Departmental 8,280,513 5,472,186 7,346,011 34%

26,659,579 24,778,894 26,145,223 6%

TOTAL EXPENDITURES 115,163,303$ 124,033,419$ 123,247,331$ -1%

1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget is $125,401,473.

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City of Denton

Electric Fund

Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)



DESCRIPTION Y-T-D BUDGET1

ACTUALS ACTUALS

Beginning Working Capital

and Reserves as of 9/30/17 72,510,304$ 76,942,756$

REVENUES:

Rate Revenues 140,995,087$ 142,247,739 156,488,941 6%

Transmission Revenues 18,152,139 34,909,157 34,231,935 70%

Other Revenues 13,488,124 6,010,620 7,061,136 21%

Total Revenues 172,635,350 183,167,516 197,782,012 14%

EXPENDITURES:

Purchased Power 88,843,097 67,509,516 79,982,427 4%

DEC Fuel - 9,051,826 2,169,444 28%

Transmission of Power 4,217,800 5,578,948 11,940,988 114%

Personnel Services 15,830,362 19,151,317 16,253,725 -19%

Materials and Supplies 825,429 1,268,680 992,390 -40%

Maintenance and Repair 800,701 1,394,600 701,778 -49%

Insurance 50,033 719,596 703,503 0%

Return on Investment Return on Investment5,405,518 5,767,985 5,991,680 4%

Franchise Fee Franchise Fee7,717,675 8,239,978 8,554,188 4%

Miscellaneous 446,459 674,305 491,054 -62%

Operations 4,756,419 6,979,701 4,140,379 -52%

Debt Service 29,141,890 34,360,369 34,364,908 0%

Interfund Transfers 10,934,687 12,357,797 11,971,526 -5%

Capital Outlay 1,147,964 24,105,000 25,036,734 0%

Total Expenditures 170,118,034 197,159,618 203,294,724 -1%

Net Income (Loss) 2,517,316$ (13,992,102) (5,512,712)

Ending Working Capital and Reserves 58,518,202$ 71,430,044$

1 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $204,903,753 for

expenditures. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.

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City of Denton

Water Fund





ACTUALS ACTUALS


and Reserves as of 09/30/171

20,851,375$ 23,340,901$

REVENUES:

Water Sales Residential 17,504,928$ 18,585,215 20,300,407 9%

Water Sales Commercial 15,707,766 16,575,408 17,483,857 5%

Water for Resale 1,301,603 1,719,330 2,812,263 64%

Other Water 1,433,508 800,099 1,448,887 81%

Transfers In 5,476,269 5,808,155 5,466,087 -6%


Impact Fee Revenue 4,000,000 3,755,404 3,755,404 0%

Total Revenues 45,647,712 47,417,611 51,586,431 9% Use of Reserves - -

EXPENDITURES:

Personal Service 9,587,107 10,217,907 9,975,274 -2%

Purchased Power 1,221,663 1,561,851 1,340,181 -14%

Purchase of Water - - 1,857 -

Materials and Supplies 1,513,730 1,686,976 1,695,733 1%

Maintenance and Repairs 1,448,707 1,373,808 1,224,639 -11%

Insurance 80,817 219,101 222,481 2%

Miscellaneous 319,007 338,969 254,174 -25%

Operations, Services 1,865,774 2,413,496 1,634,402 -32%

Capital Outlay 12,906,384 9,167,403 11,749,877 28%

Return on Investment 1,213,302 1,316,982 1,376,185 4%

Franchise Fee 1,733,289 1,859,180 1,965,981 6%

Debt Service 11,195,411 12,638,094 12,638,093 0%

Transfers Out 3,611,755 4,231,917 3,482,633 -18%

Total Expenditures 46,696,946 47,025,684 47,561,510 1%

Net Income (Loss) (1,049,234)$ 391,927 4,024,921

Ending Working Capital

and Reserves 21,243,302$ 27,365,822$

1 The Beginning Working Capital balance excludes $6,650,271 of Impact Fee Reserves and $250,000 for Development Plan Line Reserves.

Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.

2 Annual budget reflects year-end estimate presented to the City Council. Approved year-end budget was $47,809,321 for expenditures.

19

City of Denton

Wastewater Fund




DESCRIPTION Y-T-D BUDGET2ACTUALS ACTUALS



15,926,057$ 17,861,887$

REVENUES:

Residential Fees 11,655,664$ 11,030,267 12,199,424 11%

Commercial Fees 12,207,762 12,450,498 12,336,480 -1%

Effluent Irrigation Fees 103,593 67,076 119,802 79%

Wholesale Fees 631,996 686,659 590,985 -14%

Other Wastewater Fees 1,894,464 1,659,542 1,688,037 2%

Drainage Fees 4,645,817 4,649,762 4,782,259 3%

Transfer In 920,819 659,030 659,030 0%


Impact Fee Reserves 3,520,000 2,000,000 2,000,000 0%

Total Revenues 35,751,013 33,320,334 34,630,239 4%

EXPENDITURES:


Purchased Power 987,482 1,020,000 1,028,092 1%

Materials and Supplies 1,077,202 1,235,111 1,010,518 -18%

Maintenance and Repairs 1,180,377 1,433,129 1,132,435 -21%

Insurance 28,312 180,492 180,492 0%

Miscellaneous 49,129 53,551 42,141 -21%

Operations, Services 1,917,683 2,124,260 1,567,762 -26%

Capital Outlay 11,207,727 7,104,424 8,633,897 22%

Return on Investment 887,541 902,791 910,533 1%

Franchise Fee 1,267,915 1,289,702 1,300,761 1%

Debt Service 6,815,945 7,167,280 7,166,884 0%

Transfers Out 3,232,591 3,196,398 3,176,251 -1%


Net Income (Loss) (133,181)$ (8,876) 1,045,731


and Reserves 15,917,181$ 18,907,618$

1 The Beginning Working Capital balance excludes $2,194,686 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,

and $335,000 for Development Plan Line Reserves.


Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.

20

City of Denton

Drainage Operations


For the Period Ended Sep 30, 2018


DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS

REVENUES:

Residential Drainage Fees 1,762,980$ 1,788,253$ 1,816,999$ 2%

Nonresidential Drainage Fees 2,882,837 2,861,509 2,965,262 2%

Wastewater Resources 13,913 100,000 - -100%

General Fund Transfer 501,336 424,030 424,030 0%

Total Revenues 5,161,066 5,173,792 5,206,291 1%

EXPENDITURES:

Personal Service 1,453,432 1,537,953 1,522,588 2%

Materials and Supplies 45,991 82,120 51,318 -18%

Maintenance and Repairs 82,066 122,200 85,974 -14%

Insurance 2,992 25,461 25,461 0%

Miscellaneous 16,158 16,000 9,221 -42%

Operations, Services 341,028 531,509 392,818 0%

Capital Outlay 1,989,444 1,555,786 1,863,499 5%

Debt Service 636,372 677,790 676,769 0%

Transfer Out 593,583 624,973 578,643 -4%


Net Income (Loss) -$ -$ -$

Approved year-end budget was $5,141,036 for expenditures.

1 Annual budget reflects year-end estimate presented to the City Council.

21

City of Denton

Solid Waste Fund




DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS



8,151,875$ 9,468,891$

REVENUES:

Garbage Fees - Residential 11,173,109$ 10,794,542 10,757,335 0%

Garbage Fees - Commercial 14,884,430 15,365,434 15,550,202 1%

Landfill Fees 6,249,179 6,330,540 6,057,188 -4%

Materials Processing 131,253 133,972 124,719 -7%

Recycling and Public Outreach 872,049 778,450 814,110 5%

Site Operations 208,259 206,729 127,636 -38%

Other Revenue 529,852 444,749 1,297,383 192%


Total Revenues 34,077,961 34,107,416 34,791,881 2%

EXPENDITURES:




Insurance 94,952 233,631 233,631 0%

Miscellaneous 62,659 67,859 60,163 -11%

Operations, Services 6,123,163 5,363,512 5,695,984 6%

Capital Outlay 1,914,843 1,970,000 2,146,941 9%

Debt Service 8,059,706 9,542,116 9,543,240 0%

Franchise Fee 1,687,618 1,702,293 1,737,792 2%

Landfill Closure 1,198,301 1,143,059 1,143,059 0%

Transfer Out 2,580,719 3,740,685 3,657,201 -2%


Net Income (Loss) 1,121,097$ (829,601) (181,010)


and Reserves 7,322,274$ 9,287,881$

1 The Beginning Working Capital Reserve excludes $8,654,114 Landfill Closure/Post Closure Reserves.


Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.

22

City of Denton

Airport Fund





ACTUALS ACTUALS


and Reserves as of 09/30/17 2,471,421$ 2,748,875$

OPERATING REVENUES:

Airport Ground Leases 584,700$ 713,154 778,054 9%

FBO Commissions 208,931 199,808 291,467 46%

Miscellaneous 95,524 92,619 114,802 24%

Total Operating Revenues 889,155 1,005,581 1,184,323 18%

OPERATING EXPENDITURES:

Personal Service 519,113 530,482 485,569 -8%



Insurance 7,025 21,823 21,823 0%

Miscellaneous 1,024 1,200 449 -63%

Operations 190,267 238,160 161,653 -32%

Transfers Out - Operating 470,222 547,070 519,841 -5%

Total Operating Expenses 1,270,834 1,490,628 1,260,757 -15%

Operating (Loss) (381,679) (485,047) (76,434)

NON-OPERATING REVENUES:


Gas Well Royalties 606,518 474,130 410,692 -13%

Total Non-Operating Revenues 648,762 499,130 475,875 -5%

NON-OPERATING EXPENDITURES:

Transfers Out - Capital - 225,000 225,000 0%

Total Non-Operating Expenses - 225,000 225,000 0%

Non-Operating Income (Loss) 648,762 274,130 250,875

Net Income (Loss) 267,083$ (210,917) 174,441

Ending Working Capital 2,260,504$ 2,923,316$

1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY

2017-18 budget process.

23

City of Denton

Street Improvement Fund

Schedule of Expenditures - Budget vs Actuals (Unaudited)




ACTUALS ACTUALS


and reserves as of 9/30/2017 1,253,048$ 1,158,667$

REVENUES:

Franchise Fees 11,097,869$ 12,476,060 12,743,755 2%

Street Cuts 240,099 357,000 292,517 -18%

Investment Income 14,294 10,000 933 -91%

Transfers In 1,023,161 1,118,135 1,149,075 3%

Miscellaneous 200,835 - 1,505

Total Revenues 12,576,258 13,961,195 14,187,785 2%

EXPENDITURES:



Maintenance and Repairs 8,631,040 6,620,524 6,734,599 2%

Insurance 8,649 51,693 51,693 0%

Miscellaneous 3,609 5,000 4,320 -14%

Operations, Services 742,117 830,302 736,304 -11%

Transfer Out 727,176 2,926,542 2,869,873 -2%

Fixed Assets 66,329 - -

Total Expenditures 13,216,215 13,961,195 13,723,025 -2%

Net Income (Loss) (639,957)$ - 464,760

Ending Fund Balance 1,253,048$ 1,623,427$

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.

24

City of DentonGrantsSchedule of Expenses - Budget vs Preliminary Actuals (Unaudited)For the Period Ended September 30, 2018

GRANT DESCRIPTION

EXPENDITURE

S AS OF

9/30/20172

ANNUAL

BUDGET

PRELIMINIAR

Y ACTUALS

BUDGET VS

ACTUALS

FY 2017-18 Budget

US Dept of HUD -

Community Development Block Grant(CDBG) 2,775,354$ 1,893,649$ 735,862$ -61%

US Dept of HUD -

HOME Investment Partnership Program 2,816,384 1,046,759 503,978 -52%

Community Development1

5,591,738 2,940,408 1,239,840 -58%

TxDot STEP Comprehensive Grant - 91,464 74,805 -18%

2016 UASI - 130,000 130,000 0%

2017 UASI - 98,200 96,962 -1%

Emergency Management Performance Grant - 46,825 - -100%

2016 Tobacco Enforcement Grant - 7,350 - -100%

Staffing for Adequate Fire & Emergency Response - 419,971 225,381 -46%

Public Safety - 793,810 527,148 -34%

Airport Maintenance (RAMP) Grant - 50,000 49,995 0%

TxDot-RTR-Mayhill Rd-IH35 E to US 380 14,203,683 33,197,821 14,315,161 -57%

TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 9,189,164 39,579,553 4,527,476 -89%

County-Traffic Signal-US 380-Cindy Lane - 53,865 - -100%

TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 37,000 - -100%

TxDot-RTR-McKinney (Formerly FM426) 138 18,267,303 1,308,511 -93%

TxDot-Hickory Creek FM2181-FM2499 2,294 2,397,706 75,279 -97%NCTCOG Regional HHW Drop-Off Facility

Project - 55,898 - -100%

Bicycle & Pedestrian Projects Grant - 1,500,000 - -100%

Transportation1

23,395,279 95,139,146 20,276,422 -79%

Interlibrary Loan Program (ILL) - 25,000 25,000 0%

TIFMAS Training Tuition Grant - 10,000 10,000 0%

Other - 35,000 35,000 0%

Total FY 2017-18 Budget 28,987,017 98,908,364 22,078,410 -78%

New Awards

Emergency Solutions Grant - 600,000 506,879 -16%

Community Development - 600,000 506,879 -16%

Federal Equitable Sharing - 31,315 31,315 0%

Chapter 59 Asset Forfeitures - 169,399 169,399 0%

U.S. Marshals Violent Offenders Task Force - 25,663 25,663 0%

PD-Law Enforcement Officer Standards &

Education - 17,151 17,151 0%

Sexual Assault Nurse Examiners (SANE)

Reimbursement - 47,872 47,872 0%

2017 SHSP Ballistic Blankets - 3,000 3,000 0%

2017 SHSP Night Vision - 14,200 14,171 0%

2017 UASI - 30,000 - -100%

Body Armor Grant Program - 91,692 - -100%

2018 SHSP SWAT Equipment Enhancement - 24,000 - -100%

Domestic and Sexual Violence Initiative Grant - 225,000 204,202 -9%

Organized Crime Drug Enforcement Task Force - 9,037 9,037 0%

Public Safety - 688,329 521,810 -24.19%

25

City of DentonGrantsSchedule of Expenses - Budget vs Preliminary Actuals (Unaudited)For the Period Ended September 30, 2018

GRANT DESCRIPTION

EXPENDITURE

S AS OF

9/30/20172

ANNUAL

BUDGET

PRELIMINIAR

Y ACTUALS

BUDGET VS

ACTUALS

TxDot-N TX Blvd Roundabout 11,805 1,988,195 2,187 -100%

TxDot-RTR-ITS COMM Trunk Line 253,372 1,318,228 185,010 -86%

TxDot-US 77 At Nicosia Street - 49,533 49,533 0%

TxDot-FM 2499 At State School Road - 21,597 21,597 0%

TxDot-FM 2499 At Unicorn Lake - 21,638 21,491 -1%

Transportation1

265,177 3,399,191 279,818 -92%

TxDot NW Trail Extension Grant 1,086,685 212,273 212,273 0%

Parks and Recreations 1,086,685 212,273 212,273 0%

Interlibrary Loan Program (ILL) - 7,149 7,149 0%

TIFMAS Training Tuition Grant - 1,275 1,275 0%

Historic Preservation-Certified Local Government

(CLG) Grant - 1,939 1,939 0%

Texas Parks & Wildlife-CCNHC-Davis Trailhead

& Trail - 199,613 113,670 -43.05%

Others - 209,976 124,033 -41%

Total New Awards 1,351,862 5,109,769 1,644,813 -68%

TOTALS 30,338,879$ 104,018,133$ 23,723,223$ -77%

1 This grant amount will be spent over several years and the fiscal year 2017-18 projections are just estimated expenditure

in the one year. Remaining grant amounts will be spent in future fiscal year.2 A portion of the grants presented cover multiple years.

26

Section 3


September 2018

REVENUE & ECONOMIC ANALYSIS

27

Revenue & Economic Analysis Summary

The data included in this section provides information on local, state and national trends impacting the City’s financial position. The following notes are provided to facilitate this section’s readability. 1. Positive Outlook – Represents favorable conditions for the local

economy. Color code – Green.

2. Cautious Outlook – Represents changing conditions that require close monitoring. Color code – Yellow.

3. Negative Outlook – Represents unfavorable conditions for the local economy. Color code – Red.

The data included in this section have been obtained from a variety of sources. Sales tax and construction related data have been obtained from internal city departments. Economic data for the State have been obtained from the Federal Reserve Bank of Dallas and may be subject to availability. National economic data were compiled with assistance from the City’s investment advisor, First Southwest Asset Management.

28

National Economic Trends Period Ending September 30, 2018 Gross Domestic Product (GDP)

The initial reading of third quarter GDP showed that economic growth had slowed from +4.2% in the second quarter to +3.5%. The consumer spending component was solid at +4.0%, but trade subtracted 1.8 percentage points from the overall Q3 number as imports soared while exports fell. Obviously, this reflects the trade war …which has since escalated significantly in the fourth quarter. Inventory accumulation added 2.1 percentage points to the overall number. This is a volatile component; it’s quite possible that inventories will reduce fourth quarter growth. Again, this could be trade war related as U.S. businesses boosted inventories ahead of tariff implementation. When inventories are removed, third quarter “real final sales” rose by just +1.4%, compared to +5.4% in the second quarter.

Nonfarm Payrolls

The September employment report was an oddly mixed bag. The ADP private payroll report, released two days earlier, had hinted at some upside risk to payrolls. But the official Bureau of Labor Statistics (BLS) release showed nonfarm payrolls missed the +185k median forecast with only +134k new jobs added in September. However, the previous two months were revised higher by a combined +87k. …that’s both a big miss and a big revision. Although some hurricane related distortion seems likely, the BLS said it is not possible to quantify the net effect on payrolls. The last three months have seen payrolls grow by a healthy +190k per month average. In the separate household survey, the unemployment rate fell from 3.9% to 3.7%, pushing the 49-year low just a little bit lower.

29

Inflation

Inflation seems to have peaked. Both the headline consumer price index (CPI) and core CPI rose by just +0.1% in September, below the median forecasts. On a year-over-year basis, headline CPI slipped from a +2.7% pace to +2.3%, while the core was unchanged at +2.2%. Although a slight deceleration in the upward trend of housing costs and a drop in vehicle prices were major factors in the lukewarm September report, prices on many goods (including beef, pork, chicken, fruits and vegetables, major appliances, drugs, alcohol and medical services) were stagnant or falling.

The Fed, however, is more interested in the personal consumption expenditures (PCE) core index which continues to hover just below the 2.0% mark.

Retail Sales

Consumer spending has been puzzlingly sluggish given the elevated levels of consumer confidence. September retail sales, expected to climb +0.5%, instead rose by just +0.1% for the second straight month. The weakness was primarily attributed to a sharp drop in food services and drinking places, some of which may be hurricane related. Sales ex autos and gas also fell short of forecasts. However, the control group measure (which feeds into GDP) beat forecasts for a +0.4% gain by rising +0.5% …although August data was revised a tenth lower to 0.0%. Ignoring all the noise, the key takeaway is that after four straight months with headline retail sales growing at better than 6% on a year-over-year basis, sales slowed to +4.7% in September.

30

Texas Home Sales Texas home sales fell -5.4% in the third quarter, but were still up +3.9% on a year-over-year basis. The average Texas home price in September was $281k, a +4.2% increase over the previous year, but below the record high of $298.2 set three months earlier. . In Denton County, unit home sales fell by -7.5% during the summer quarter, and fell -7% over the same period a year ago. The average home price in September was $348.2k, a +5.8% year-over-year increase, but below the record high of $367.9 set two months earlier. County home listings in September were 3,918, approximately +41% higher than two years earlier. The available inventory

(in months) was 3.2 months at quarter end; a substantial increase from 2.2 six months earlier.

The paper was prepared by FirstSouthwest Asset Management, is intended for educational and informational purposes only and does not constitute legal or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of FirstSouthwest Asset Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In addition, the views are subject to change without notice. This paper represents historical information only and is not an indication of future performance.

31

Fuel Prices Outlook Cautious

Description: Quarterly fuel trends for the United States and Texas.

Analysis: Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on

disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of

fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key

predictor of sales tax collections. Fuel prices showed a 0.2% decrease from the prior quarter at the national level

and a 1.3% decrease at the state level. Staff has rated this outlook as Cautious.

Source: U.S. Department of Energy

$0

$2

$4

$6

$8

$10

$12

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18M

illio

ns

Do

llars

Fuel Prices

Sales Tax Texas Fuel Prices US Fuel Prices

32

Municipal Cost Index Outlook Negative

Description: The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased

frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments

of Commerce and Labor as well as independently compiled data to project a composite cost picture for the

municipal budget officer or operating department manager. Costs of labor, materials and contract services are all

factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price

Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the

construction cost indexes published by the U.S. Department of Commerce, respectively.

Analysis: The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local

governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI

means the overall price mix for these types of commodities will cost local governments more to do routine business.

The 4th Quarter of 2017-18 shows an increase of 2.3% over the prior quarter and an increase of 8.5% over the 4th

Quarter of 2016-17. Staff has rated this indicator as Negative.

Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State

and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control

price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,

readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing

business as a local government.

Source: American City and County Magazine

225.00

230.00

235.00

240.00

245.00

250.00

255.00

4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

Municipal Cost Index

33

Hotel Occupancy Tax Analysis Outlook Positive

4th Quarter FY 2017‐18Actual Y‐T‐D

Occupancy Tax Revenue: 713,496$ 2,762,062$

FY 2017‐18 Budget 789,529$ 3,052,174$

Over (Under) Budget (76,033)$ (290,112)$

Hotel Occupancy Tax Budget: 3,052,174$ End of Year Projection: 3,052,174$ End of Year Actual: 2,762,062$

(290,112)$ Variance ‐ Actual to Projection (290,112)$

Description: Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, oragreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtainsleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed andbreakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.

Analysis: While the use of this revenue source is restricted by state law, it is an essential revenue source for varioustourist related activities within the community and an important indicator of local economic activity. HotelOccupancy tax revenue through the 4th Quarter of FY 2018 was 9.5% less than budget and 8.43% more than prioryear's actual. Staff has rated the outlook for this economic indicator as Positive.

FISCAL YEAR FORECAST

Variance ‐ Actual to Budget

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Hotel Occupancy Tax Collections

FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18

34

Sales and Use Tax Analysis Outlook Positive

4th Quarter FY 2017‐18Actual Y‐T‐D

Revenue: Gross Sales Tax Municipal Operations 631,423$ 1,993,932$ General Retail & Others 9,554,464 37,741,645 Comptroller Fees (187,369) (740,177) Amount Retained (183,622) (725,375) Total Revenue 9,814,896$ 38,270,025$

*Expenses: Economic Incentives Denton Crossing1 140,535$ 684,313$ Unicorn Lake2 21,180 75,011 Rayzor Ranch3 450,582 1,415,014 Golden Triangle4 6,103 82,163 Total Expenses 618,400$ 2,256,501$

Net Total 9,196,496 36,013,524

FY 2017‐18 Budget 9,024,868 33,807,566

Over(Under) Budget 171,628$ 2,205,958$

Sales Tax Budget: 36,181,385$ Year End Projection: 39,452,935

38,270,025

Variance to Original Budget: 2,088,640$ Variance to Year End Projection: (1,182,910)$

Economic Development Expenditure Budget: 2,373,819$ Year End Projection: 2,373,819Year End Actual: 2,256,501

Variance to Original Budget: 117,318$ Variance to Year End Projection: 117,318$

1Incentive is 50% of general sales taxes. For 2017‐18 sales tax equaled $2,052,939.2Incentive is 50% of general sales taxes. For 2017‐18 sales tax equaled $225,033.3Incentive is 75% of general sales taxes. For 2017‐18 sales tax equaled $2,691,150.4Incentive is 75% of general sales taxes. For 2017‐18 sales tax equaled $164,326.

Description: Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total taxrate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).

Analysis: As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the deliveryof services to the community. Sales tax revenues through the 4th Quarter of FY 2018 compared to revenues from the prioryear 4th Quarter shows a ‐0.26% decrease, and compared to the budget shows a 1.62% increase. Staff has rated thisindicator as Positive.

Year End Actual:

$0.0$1.0$2.0$3.0$4.0$5.0$6.0$7.0$8.0$9.0

$10.0

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Gross Sales Tax Collections (Millions)

FY 2013‐14 Actual FY 2014‐15 Actual FY 2015‐16 Actual FY 2016‐17 Actual FY 2017‐18 Actual

35

Certificates of Occupancy Outlook Cautious

Source: City of Denton's Development Services Department.

Description: Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building

Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no change

in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building

official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and

consumer health codes are met.

Analysis: Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of

the local economy. Certificates of Occupancy increased 36.1% from the prior quarter and decreased 39.1% from the

4th Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

Certificates of Occupancy

36

Residential Permits Outlook Cautious

Source: City of Denton's Development Services Department.

Description: Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and

applicable City ordinances. The data presented in this analysis only include new permits issued and not

remodels/alterations.

Analysis: Residential Permits are an economic indicator that provides a framework for the overall condition of the

local economy. In particular, residential permits have a direct correlation with building inspection fees and

appraised values. Residential permits increased 74.6% from the prior quarter and increased 6.1% from the 4th

Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

Residential Permits

37

Texas Leading Indicators Index Outlook Cautious

Source: Federal Reserve Bank of Dallas

Description: The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future

of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The

index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well

Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising, and Average

Weekly Hours Worked in Manufacturing.

Analysis: Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this

quarter shows an increase in the state's rate of growth. The index decreased 1.15% from the prior quarter and

increased 2.06% from the 4th Quarter of 2016-17. Staff has rated this indicator as Cautious

100.0

105.0

110.0

115.0

120.0

125.0

130.0

135.0

140.0

4Q'08

2Q'09

4Q'09

2Q'10

4Q'10

2Q'11

4Q'11

2Q'12

4Q'12

2Q'13

4Q'13

2Q'14

4Q'14

2Q'15

4Q'15

2Q'16

4Q'16

2Q'17

4Q'17

2Q'18

4Q'18

Texas Leading Indicators Index

38

Unemployment Rate Index Outlook Positive

Description: Unemployment is defined as the number or proportion of people looking for work at the prevailing

wage who are unable to find employment.

Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the

national, state and local economies. The unemployment rate for the City of Denton is at 3.2% for the 4th Quarter.

The unemployment rates for most of the other reported sectors were either down slightly or flat from the prior

quarter. As a result of the downward trend since the high of the 2nd Quarter of 2012, staff has rated the outlook for

this revenue indicator as Positive.

Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but

indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged

workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.

Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to

settle for a part-time schedule.

Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

4Q '12 2Q '13 4Q '13 2Q '14 4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 2Q '18 4Q '18

Unemployment Rate Index

Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States

39

HighwayMedallionatNorthTexasBlvd

40

Section 4


September 2018

INVESTMENT REPORT

41

4th Fiscal Quarter 2018 - September 30, 2018 Page 1

INVESTMENT POOLPolicy

Par Market Book Unrealized Max. Benchmark

Portfolio: Value Value Value Gain/(Loss)1

WAM WAM YTM Yield*

Investment Pool 610,092,457$ 606,716,884$ 609,567,636$ (2,850,752)$ 206 550 1.73% 2.05%

*Twelve month moving average of a one yearU.S. T-bill yield

% of Total

Par Market Book Unrealized Portfolio Policy

Securities By Investment Type: Value Value Value Gain/(Loss)1

WAM YTM (Book Value) Max.

U.S. Treasuries 27,000,000 26,893,742 26,947,477 (53,735) 104 1.57% 4.42% 100.00%

U.S. Federal Agencies 257,756,000 254,844,355 257,563,816 (2,719,461) 373 1.53% 42.26% 100.00%

Municipal Bonds 11,000,000 10,930,770 11,000,000 (69,230) 153 1.07% 1.80% 15.00%

Certificates of Deposit 82,000,000 82,000,000 82,000,000 - 252 1.70% 13.45% 35.00%

Commercial Paper 36,000,000 35,711,560 35,719,886 (8,326) 116 2.50% 5.86% 15.00%

Local Government Investment Pools 194,701,747 194,701,747 194,701,747 - 1 1.94% 31.94% 50.00%

Demand Deposits 1,634,710 1,634,710 1,634,710 - 1 0.80% 0.27% -

Total Portfolio 610,092,457$ 606,716,884$ 609,567,636$ (2,850,752)$ 206 1.73% 100.00% -

Current 3 Months Ago 3 Month 1 Year Ago

Investment Pool Comparisons: 9/30/2018 6/30/2018 Difference 9/30/2017

Par Value 610,092,457$ 555,902,431$ 54,190,026$ 707,614,071$

Market Value 606,716,884$ 552,367,304$ 54,349,580$ 706,581,905$

Book Value 609,567,636$ 555,370,737$ 54,196,899$ 707,643,535$

Unrealized Gain(Loss) (2,850,752)$ (3,003,433)$ 152,681$ (1,061,630)$

Weighted Average Maturity 206 291 (85) 382

Yield to Maturity 1.73% 1.58% 0.15% 1.25%

Portfolio Composition:

U.S. Treasuries 4.42% 4.85% -0.42% 7.64%

U.S. Federal Agencies 42.26% 54.11% -11.85% 49.86%

Municipal Bonds 1.80% 1.98% -0.19% 3.23%

Certificates of Deposit 13.45% 18.36% -4.90% 21.34%

Commercial Paper 5.86% 3.74% 2.12% 5.63%

Local Government Investment Pools 31.94% 11.92% 20.02% 8.47%

Insured Cash Sweep Savings Deposits 0.00% 4.50% -4.50% 3.53%

Demand Deposits 0.27% 0.54% -0.27% 0.30%

Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio

Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 35,757,895$ 1,634,710$ 2187.42%

LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC 26,360,000$ 25,500,180$ 103.37%

Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC 16,950,000$ 15,257,438$ 111.09%

**Does not include FDIC insurance

***Formerly, ViewPoint Bank

Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal.

Wells Fargo Bank Checking 2,179,418$ 108,660,592$ 1,634,710$

Compliance Statement & Review:

CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1 Year Ago

Difference

(97,521,614)$

1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are

realized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and

losses are unlikely to be realized.

(176)

0.48%

-1.42%

(99,865,021)$

(98,075,899)$

(1,789,122)$

-3.21%

Withdrawals

The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's Investment

Policy and the Public Funds Investment Act (Texas Government Code, Chapter 2256.023).

Reviewer: Antonio Puente, Jr., CGFO

-7.61%

-7.89%

-0.03%

Pledge Required

0.23%

> 102%

> 102%

> 100%

23.47%

-3.53%

Chief Financial Officer Treasury Manager

(109,205,300)$

Preparer: Kevin Ann Mullen, CPA

ANTONIO PUENTE, JR. KEVIN ANN MULLEN

42


INVESTMENT POOL

Current 3 Months Ago 3 Month 1 Year Ago 1 Year

9/30/2018 6/30/2018 Difference 9/30/2017 Difference

Par Value - U.S. Treasuries 27,000,000$ 27,000,000$ -$ 54,000,000$ (27,000,000)$

Par Value - U.S. Federal Agencies 257,756,000 300,756,000 (43,000,000) 352,756,000 (95,000,000)

Par Value - Municipal Bonds 11,000,000 11,000,000 - 22,800,000 (11,800,000)

Certificates of Deposit 82,000,000 102,000,000 (20,000,000) 151,000,000 (69,000,000)

Par Value - Commercial Paper 36,000,000 21,000,000 15,000,000 40,000,000 (4,000,000)

Local Government Investment Pools 194,701,747 66,174,172 128,527,575 59,924,172 134,777,575

Insured Cash Sweep Savings Deposits - 25,000,000 (25,000,000) 25,000,000 (25,000,000)

Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)

Total Par Value 610,092,457$ 555,902,431$ 54,190,026$ 707,614,071$ (97,521,614)$

Market Value - U.S. Treasuries 26,893,742$ 26,827,579$ 66,163$ 54,005,424$ (27,111,682)$

Market Value - U.S. Federal Agencies 254,844,355 297,698,394 (42,854,039) 351,938,910 (97,094,555)

Market Value - Municipal Bonds 10,930,770 10,904,650 26,120 22,733,295 (11,802,525)


Market Value - Commercial Paper 35,711,560 20,790,250 14,921,310 39,846,205 (4,134,645)



Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)

Total Market Value 606,716,884$ 552,367,304$ 54,349,580$ 706,581,905$ (99,865,021)$

Book Value - U.S. Treasuries 26,947,477$ 26,910,229$ 37,248$ 54,062,054$ (27,114,577)$

Book Value - U.S. Federal Agencies 257,563,816 300,518,882 (42,955,066) 352,831,583 (95,267,767)

Book Value - Municipal Bonds 11,000,000 11,000,000 - 22,841,978 (11,841,978)


Book Value - Commercial Paper 35,719,886 20,795,195 14,924,691 39,849,849 (4,129,963)



Demand Deposits 1,634,710 2,972,259 (1,337,549) 2,133,899 (499,189)

Total Book Value 609,567,636$ 555,370,737$ 54,196,899$ 707,643,535$ (98,075,899)$

Accrued Interest 2,671,966$ 3,171,462$ (499,496)$ 3,052,951$ (380,985)$

Cash Value - 609,388,850$ 555,538,766$ 53,850,084$ 709,634,856$ (100,246,006)$

(Total Market Value + Accrued Interest)

Unrealized Gain/(Loss) (2,850,752)$ (3,003,433)$ 152,681$ (1,061,630)$ (1,789,122)$

Change in Fair Value since 9/30/17 - (1,356,603)$ (1,631,152)$ 274,549$ (1,586,781)$ 230,178$

(GASB 31)

Strategy Statement:


The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee

income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet

anticipated daily cash needs for the City's operations, capital projects and debt service. In order to meet these obligations and to minimize

potential liquidation losses, the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The

objectives of this portfolio are to: (1) ensure safety of principal by investing in only high quality securities for which a strong secondary market

exists; (2) ensure that anticipated cash flow needs are matched with adequate investment liquidity; (3) limit market and credit risk through

diversification; and (4) attain the best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by

actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the

Federal Reserve Statistical Release H.15 for constant maturities.

43


INVESTMENT POOL

Current 3 Months Ago 1 Year Ago

Summary By Security Type: 9/30/2018 6/30/2018 9/30/2017

U.S. Treasuries - Coupon 26,947,477$ 26,910,229$ 54,062,054$

U.S. Federal Agencies - Coupon 236,808,052$ 279,762,927 322,073,977

U.S. Federal Agencies - Callable 20,755,765$ 20,755,956 30,757,606

Municipal Bonds - Coupon 11,000,000$ 11,000,000 22,841,978

Certificates of Deposit - CDARS 42,000,000$ 42,000,000 59,000,000

Certificates of Deposit - SLOC 40,000,000$ 60,000,000 92,000,000

Commercial Paper - Discount 35,719,886$ 20,795,195 39,849,849

Local Government Investment Pools 194,701,747$ 66,174,172 59,924,172

Insured Cash Sweep Savings Deposits -$ 25,000,000 25,000,000

Demand Deposits 1,634,710$ 2,972,259 2133899

Total Book Value 609,567,636$ 555,370,738$ 707,643,535$

Objective:


Summary By Security Type: 9/30/2018 6/30/2018 9/30/2017

U.S. Treasuries - Coupon 4.42% 4.85% 7.64%

U.S. Federal Agencies - Coupon 38.85% 50.37% 45.51%

U.S. Federal Agencies - Callable 3.41% 3.74% 4.35%

Municipal Bonds - Coupon 1.80% 1.98% 3.23%

Certificates of Deposit - CDARS 6.89% 7.56% 8.34%

Certificates of Deposit - SLOC 6.56% 10.80% 13.00%

Commercial Paper - Discount 5.86% 3.74% 5.63%

Local Government Investment Pools 31.94% 11.92% 8.47%

Insured Cash Sweep Savings Deposits 0.00% 4.50% 3.53%

Demand Deposits 0.27% 0.54% 0.30%

Total 100.00% 100.00% 100.00%


The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal

bonds rated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit

(maturing in less than three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or

better (maturing in less than 270 days); and local government pools & SEC registered government money market mutual funds (weighted average

maturity of less than 60 days).

U.S. Treasuries ‐Coupon4.42%

U.S. Federal Agencies ‐Coupon38.85%

U.S. Federal Agencies ‐ Callable3.40%

Municipal Bonds ‐ Coupon1.80%

Certificates of Deposit ‐ SLOC

6.56%

Certificates of Deposit ‐ CDARS

6.89%

Commercial Paper ‐Discount5.86%

Local Government Investment Pools31.94%

Demand Deposits0.27%

Current09/30/2018

44


INVESTMENT POOLCurrent 3 Months Ago 1 Year Ago

Summary By Issuer: 9/30/2018 6/30/2018 9/30/2017

CDARS CDs 42,000,000.00 42,000,000.00 59,000,000.00

LEGACYTEXAS BANK CDs* 25,000,000 45,000,000 62,000,000

INDEPENDENT BANK CDs 15,000,000 15,000,000 30,000,000

U.S. TREASURY 26,947,477 26,910,229 54,062,054

FFCB 57,996,001 71,996,109 84,030,979

FHLB 105,978,215 115,963,972 130,125,419

FHLMC 25,932,308 42,928,630 52,934,154

FNMA 67,657,291 69,630,170 85,741,031

DALLAS, TX WTR & SWR REV BDS 10,000,000 - 10,000,000

TEXAS A&M UNIV REV BDS 1,000,000 10,000,000 4,500,000

LUBBOCK, TX GO REFUNDING BDS - 1,000,000 3,301,573

UNIVERSITY OF HOUSTON, TX REV BDS - - 5,040,405

JP MORGAN SECURITIES LLC 10,923,670 10,854,083 24,870,611

TOYOTA MOTOR CREDIT CORP 19,820,178 - 4,990,263

NESTLE FINANCE INTL LTD - - 9,988,975

ING (U.S.) FUNDING LLC - 4,996,125 -

NATIXIS NY BRANCH 4,976,038 4,944,988 -

TEXSTAR 194,701,747 66,174,172 59,924,172

INSURED CASH SWEEP SAVINGS - 25,000,000 25,000,000

WELLS FARGO DEMAND DEPOSITS 1,634,710 2,972,258 2,133,899

Total Book Value 609,567,636$ 555,370,736$ 707,643,535$

Objective:


Summary By Issuer: 9/30/2018 6/30/2018 9/30/2017

CDARS CDs 6.89% 7.56% 4.98%

LEGACYTEXAS BANK CDs* 4.10% 8.10% 9.90%

INDEPENDENT BANK CDs 2.46% 2.70% 3.86%

U.S. TREASURY 4.42% 4.85% 6.96%

FFCB 9.51% 12.96% 10.03%

FHLB 17.39% 20.88% 18.65%

FHLMC 4.25% 7.73% 5.53%

FNMA 11.10% 12.54% 10.40%

DALLAS, TX WTR & SWR REV BDS 1.64% 1.80% 1.29%

TEXAS A&M UNIV REV BDS 0.16% 0.18% 1.22%

GE CAPITAL TREASURY LLC - - 2.31%

LUBBOCK, TX GO REFUNDING BDS - - 0.43%

UNIVERSITY OF HOUSTON, TX REV BDS - - 0.65%

MCKINNEY, TX GENERAL OBG BONDS - - 0.15%

TEXAS SCHOOL DIST GEN OBG BONDS - - 0.37%

JP MORGAN SECURITIES LLC 1.79% 1.95% 1.92%

TOYOTA MOTOR CREDIT CORP 3.25% - 2.18%

NESTLE FINANCE INTL LTD - - 1.92%

ING (U.S.) FUNDING LLC - 0.90% -

AMERICAN HONDA FINANCE - - 0.64%

NATIXIS NY BRANCH 0.82% 0.89% -

TEXSTAR 31.94% 11.92% 16.39%

INSURED CASH SWEEP SAVINGS - 4.50% -

WELLS FARGO DEMAND DEPOSITS 0.27% 0.54% 0.22%

Total 100.00% 100.00% 100.00%

*Formerly, ViewPoint Bank


It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value

and to those offering repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15

percent. The purpose of this requirement is to limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no

issuer limitations on U.S. Treasuries or FDIC insured products except as they pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some

investment types may be further limited

CDARS CDs, 6.89%

LEGACYTEXAS BANK CDs, 4.10%

INDEPENDENT BANK CDs, 2.46%

U.S. TREASURY, 4.42%

FFCB, 9.51%

FHLB, 17.39%

FHLMC, 4.25%FNMA, 11.10%

TEXAS A&M UNIV REV BDS, 0.16%DALLAS, TX WTR & SWR REV BDS, 1.64%JP MORGAN SECURITIES LLC, 1.79%

ING (U.S.) FUNDING LLC, .9%NATIXIS NY BRANCH, 0.82%

TEXSTAR, 31.94%

WF DEMAND DEPOSITS, 0.27%

Current9/30/2018

45


INVESTMENT POOL


Maturity Time Frame: 9/30/2018 6/30/2018 9/30/2017

00-03 Months 235,336,457$ 162,146,431$ 136,058,071$

03-06 Months 116,000,000 39,000,000 115,300,000

06-12 Months 96,000,000 147,000,000 137,500,000

12-24 Months 162,756,000 192,000,000 200,000,000

24 Months & Over 15,756,000 118,756,000

Total Par Value 610,092,457$ 555,902,431$ 707,614,071$

Objective:


Maturity Time Frame: 9/30/2018 6/30/2018 9/30/2017

00-03 Months 38.57% 29.17% 19.23%

03-06 Months 19.01% 7.02% 16.29%

06-12 Months 15.74% 26.44% 19.43%

12-24 Months 26.68% 34.54% 28.26%

24 Months & Over 0.00% 2.83% 16.78%

Total 100.00% 100.00% 100.00%


The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows

based on the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements

and by investing in securities with active secondary markets. Short-term local government investment pools and government money

market mutual funds help to provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

$550,000,000

$600,000,000

$650,000,000

$700,000,000

$750,000,000


00-06 Months 06-12 Months 12-24 Months 24 Months & Over

46


ECONOMIC SUMMARYInterest Rate History

Source: U.S. Federal Reserve Statistical

Release (H.15)

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg

Fed Funds (effective) 0.16% 0.14% 0.09% 0.08% 0.09% 0.08% 0.10% 0.09% 0.12% 0.11% 0.13% 0.14%

3-Month U.S. T-Bill 0.07% 0.09% 0.05% 0.02% 0.07% 0.05% 0.04% 0.02% 0.03% 0.03% 0.02% 0.02%

2-Year U.S. T-Note 0.26% 0.26% 0.33% 0.40% 0.34% 0.40% 0.45% 0.57% 0.64% 0.64% 0.69% 0.71%

Portfolio Benchmark* 0.18% 0.18% 0.16% 0.15% 0.13% 0.13% 0.12% 0.12% 0.12% 0.15% 0.18% 0.24%

Portfolio Yield 0.52% 0.50% 0.48% 0.49% 0.50% 0.49% 0.49% 0.51% 0.55% 0.57% 0.57% 0.65%

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg

Fed Funds (effective) 0.24% 0.36% 0.38% 0.40% 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90% 2.15%

3-Month U.S. T-Bill 0.23% 0.30% 0.27% 0.29% 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92% 2.20%

2-Year U.S. T-Note 0.98% 0.88% 0.73% 0.77% 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53% 2.57%

Portfolio Benchmark* 0.32% 0.41% 0.49% 0.54% 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75% 2.05%

Portfolio Yield 0.72% 0.79% 0.81% 0.90% 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73%

*Twelve month moving average of a one year

U.S. T-bill yield

Fiscal Year:

2017-2018

2016-2017

2015-2016

2014-2015

2013-2014

QUARTERLY COMMENTARY

September 30, 2018

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Fiscal Year 2015-2016 Fiscal Year 2016-2017 Fiscal Year 2017-2018

2,138,420$ 8,955,045$

1,874,846$

2,298,785$

4,734,315$ 6,999,226$

3,961,973$

1,175,753$ 2,763,135$

4,317,890$ 6,515,166$

2,743,857$ 1,771,206$

1,680,154$ 1,121,491$

2,695,211$

Source: First Southwest Asset

Management Economic Summary

The second quarter GDP growth was +4.2%, the best performance in four years. The initial third quarter GDP numbers are

approaching +4.0%. The economy continues to add jobs, averaging 190k per month in the third quarter as the unemployment

rate slipped to a 49-year low at 3.7%. Tentative signs of wage pressures are beginning to show up, although overall inflation

readings have actually moderated in recent months. The consumer price index retreated to +2.3% in September from +2.9% in

June. Capital spending plans are the highest in a decade and a record 25% of businesses expect to add workers in the coming

months. Market yields trended higher over the third quarter as the two-year Treasury note yield rose from 2.53% to 2.82% and

the ten-year from 2.86% to 3.06%. The Fed funds raised in September, boosting the overnight rate to a range of 2%-2.25%.

Looking forward, a December rate hike is still widely expected and the Fed’s dot plot indicates three more in 2019.


Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015

Fiscal Year to Date Earnings

3 Months 6 Months 9 Months 12 Months

849,369$

613,877$

568,824$

1,228,059$

0.00%

1.00%

2.00%

3.00%

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Jun-14

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Sep-17

Dec-17

Mar-18

Jun-18

Sep-18

Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*

FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

47

Days toMaturity

Page 1

Par Value Book ValueMaturity

DateStated

RateMarket Value

September 30, 2018Portfolio Details - Investments

AverageBalanceIssuer

Portfolio ManagementMonthly Reports

YTM365CUSIP Investment #

PurchaseDate

Treasury Securities - Coupon

45U.S. TREASURY3915 7,000,000.00 7,000,543.13 11/15/20181.25001/27/2017 6,992,657.00 1.186912828M64137U.S. TREASURY3948 10,000,000.00 9,981,208.92 02/15/20190.75006/07/2017 9,940,230.00 1.258912828P53165U.S. TREASURY3978 5,000,000.00 4,972,518.46 03/15/20191.00004/23/2018 4,968,360.00 2.233912828P95

60U.S. TREASURY3980 5,000,000.00 4,993,206.52 11/30/20181.25005/07/2018 4,992,495.00 2.087912828A34

26,947,477.03 1.57326,893,742.0027,000,000.0026,941,606.39Subtotal and Average 104

Federal Agency Issues - Coupon

4FFCB3897 4,000,000.00 4,000,025.23 10/05/20180.96006/27/2016 3,999,492.00 0.9023133EFX69135FFCB3931 25,000,000.00 24,996,929.17 02/13/20191.20002/13/2017 24,883,675.00 1.2343133EG6Z3361FFCB3932 8,000,000.00 8,001,549.60 09/27/20191.55002/16/2017 7,914,624.00 1.5303133EG2D6241FFCB3937 5,000,000.00 5,012,943.40 05/30/20191.75002/22/2017 4,975,330.00 1.3523133EDPK2553FFCB3959 6,000,000.00 6,005,455.61 04/06/20201.60007/25/2017 5,894,394.00 1.5383133EHEZ2585FFCB3976 5,000,000.00 4,979,333.59 05/08/20202.15003/23/2018 4,949,110.00 2.4163133EJCA5

29FHLB3918 7,000,000.00 6,999,916.22 10/30/20181.15001/30/2017 6,994,323.00 1.1653130AARE0410FHLB3933 7,000,000.00 6,987,418.40 11/15/20191.37502/16/2017 6,899,564.00 1.5393130AA3R7438FHLB3934 5,000,000.00 5,045,833.63 12/13/20192.37502/16/2017 4,980,010.00 1.5903130A0JR2505FHLB3939 20,000,000.00 19,998,968.49 02/18/20201.65003/08/2017 19,697,200.00 1.6543130AAXU7505FHLB3945 15,000,000.00 14,994,106.72 02/18/20201.40004/26/2017 14,722,470.00 1.4293130ABAA4505FHLB3951 15,000,000.00 15,000,000.00 02/18/20201.50006/29/2017 14,742,150.00 1.5003130ABM29529FHLB3958 8,000,000.00 8,039,293.16 03/13/20201.87507/25/2017 7,893,752.00 1.528313378J77403FHLB3973 5,000,000.00 4,966,474.18 11/08/20191.45001/25/2018 4,934,125.00 2.0723130AC2Q6158FHLB3975 5,000,000.00 4,985,824.49 03/08/20191.50003/23/2018 4,981,565.00 2.1603133782M2498FHLB3979 10,000,000.00 9,950,289.20 02/11/20202.12504/23/2018 9,916,370.00 2.5003130ADN32438FHLB3984 4,000,000.00 3,999,406.29 12/13/20192.37505/30/2018 3,982,612.00 2.3873130AEDY3605FHLB3985 5,000,000.00 5,010,684.47 05/28/20202.62505/30/2018 4,985,890.00 2.4923130AECJ7196FHLMC3935 5,000,000.00 4,995,156.27 04/15/20191.12502/22/2017 4,964,650.00 1.3083137EADZ9150FHLMC3938 5,000,000.00 5,000,000.00 02/28/20191.37502/28/2017 4,979,575.00 1.3753134GA6H2578FHLMC3960 5,000,000.00 4,987,152.11 05/01/20201.37507/25/2017 4,891,100.00 1.5413137EADR7298FNMA3903 5,000,000.00 5,000,000.00 07/26/20191.00007/26/2016 4,935,475.00 1.0003136G3XJ9148FNMA3904 10,000,000.00 10,009,793.99 02/26/20191.00007/07/2016 9,947,310.00 0.7543135G0J53149FNMA3909 3,000,000.00 3,008,452.37 02/27/20191.70008/30/2016 2,992,578.00 0.9953136FTS67148FNMA3910 10,000,000.00 10,000,987.17 02/26/20191.00008/30/2016 9,947,310.00 0.9753135G0J53305FNMA3930 10,000,000.00 9,961,146.09 08/02/20190.87502/08/2017 9,859,670.00 1.3493135G0N33515FNMA3936 5,000,000.00 5,000,000.00 02/28/20201.70002/28/2017 4,927,815.00 1.7003136G4MA8515FNMA3942 5,000,000.00 4,993,547.71 02/28/20201.50003/29/2017 4,914,490.00 1.5943135G0T29

Portfolio CITYNL! APData Updated: SET_MO: 10/17/2018 09:18

Run Date: 10/17/2018 - 09:18 PM (PRF_PM2) 7.3.0

Report Ver. 7.3.6.148

Days toMaturity

Page 2


DateStated

RateMarket Value





PurchaseDate

Federal Agency Issues - Coupon

331FNMA3950 5,000,000.00 4,980,643.58 08/28/20191.00006/14/2017 4,927,935.00 1.4343135G0P49388FNMA3971 10,000,000.00 9,896,720.43 10/24/20191.00001/08/2018 9,824,910.00 1.9933135G0R39


Federal Agency Issues - Callable

255FFCB3895 5,000,000.00 4,999,764.71 06/13/20191.18006/22/2016 4,953,810.00 1.1873133EGEF8637FHLMC3953 6,000,000.00 6,000,000.00 06/29/20201.62506/29/2017 5,879,874.00 1.6253134GBVD1697FHLMC3965 4,950,000.00 4,950,000.00 08/28/20201.62508/29/2017 4,838,154.75 1.6253134GBD82679FNMA3964 4,806,000.00 4,806,000.00 08/10/20201.70008/29/2017 4,713,042.35 1.6823136G4NZ2


Municipal Bonds - Coupon

365DALLAS, TX WTR & SWR REV BDS3899 4,000,000.00 4,000,000.00 10/01/20191.21707/07/2016 3,940,160.00 1.21723542JBE40DALLAS, TX WTR & SWR REV BDS3900 6,000,000.00 6,000,000.00 10/01/20180.98507/07/2016 6,000,000.00 0.98523542JBD6

226TX A & M UNIV REV BD3902 1,000,000.00 1,000,000.00 05/15/20191.00907/20/2016 990,610.00 1.00988213AFU4


CDs - CDARS

129CD - CDARS3929 7,000,000.00 7,000,000.00 02/07/20191.67702/09/2017 7,000,000.00 1.677SYS3929164CD - CDARS3940 10,000,000.00 10,000,000.00 03/14/20191.62603/16/2017 10,000,000.00 1.626SYS3940290CD - CDARS3955 10,000,000.00 10,000,000.00 07/18/20191.69807/20/2017 10,000,000.00 1.698SYS3955311CD - CDARS3961 10,000,000.00 10,000,000.00 08/08/20191.69808/10/2017 10,000,000.00 1.698SYS3961346CD - CDARS3966 5,000,000.00 5,000,000.00 09/12/20191.52309/14/2017 5,000,000.00 1.523SYS3966


CDs - SLOC

192CD - INDEPENDENT BANK3944 10,000,000.00 10,000,000.00 04/11/20191.62304/13/2017 10,000,000.00 1.623SYS3944493CD - INDEPENDENT BANK3974 5,000,000.00 5,000,000.00 02/06/20202.29502/08/2018 5,000,000.00 2.295SYS3974220CD - LEGACYTEXAS BANK3946 10,000,000.00 10,000,000.00 05/09/20191.67705/11/2017 10,000,000.00 1.677SYS3946255CD - LEGACYTEXAS BANK3949 15,000,000.00 15,000,000.00 06/13/20191.67606/15/2017 15,000,000.00 1.676SYS3949


Commercial Paper Disc. - Amortizing

49JP MORGAN SECURITIES LLC3977 5,000,000.00 4,983,190.28 11/19/20182.47004/23/2018 4,983,665.00 2.57946640QLK5144JP MORGAN SECURITIES LLC3983 6,000,000.00 5,940,480.00 02/22/20192.48005/30/2018 5,939,460.00 2.59746640QPN5


Run Date: 10/17/2018 - 09:18 PM (PRF_PM2) 7.3.0

49

Days toMaturity

Page 3


DateStated

RateMarket Value





PurchaseDate

Commercial Paper Disc. - Amortizing

71NATIXIS NY BRANCH3982 5,000,000.00 4,976,037.50 12/11/20182.43005/30/2018 4,976,475.00 2.54963873KMB0136TOYOTA MOTOR CREDIT3986 20,000,000.00 19,820,177.77 02/14/20192.38009/11/2018 19,811,960.00 2.43889233HPE8


Local Govt Investment Pools

1LOCAL GOVT INV POOL - TEXSTAR3641 194,701,746.74 194,701,746.74 1.940194,701,746.74 1.940SYS3641


Insured Cash Sweep Savings Deposits

1INSURED CASH SWEEP SAVINGS3962 0.00 0.00 1.9500.00 1.950SYS3962

0.00 0.0000.000.0010,000,000.00Subtotal and Average 0

Demand Deposits

1DEMAND DEPOSITS - WELLS FARGO3706 1,634,710.30 1,634,710.30 0.8001,634,710.30 0.800SYS3706


1.732584,664,593.73 610,092,457.04 206606,716,884.14 609,567,635.90Total and Average


Run Date: 10/17/2018 - 09:18 PM (PRF_PM2) 7.3.0

50

Days toMaturity

Page 4

Par Value Book ValueStated

RateMarket Value

September 30, 2018Portfolio Details - Cash




PurchaseDate

0.00

1.732584,664,593.73 610,092,457.04 206

0Average Balance

606,716,884.14 609,567,635.90Total Cash and Investments


Run Date: 10/17/2018 - 09:18 PM (PRF_PM2) 7.3.0

51

LeapFrogs,KarmienBowman–NorthLakesPark

52

Section 5


September 2018

PERFORMANCE REPORT

53

STRA TEGIC PLAN 201 7-18

The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that

capture the City’s Vision, Mission, and Value statements. The first Strategic Plan was formally

approved by the City Council in April 2011, and it has been updated periodically since that time. Over

the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our

strategic outcomes and identify measurable ways to mark our progress. The City Council approved

the FY 2017-18 Strategic Plan and associated performance measures on September 19, 2017.

The Strategic Plan serves as the basis for resource allocation decisions that are used in the

development of the FY 2017-18 Budget. The Strategic Plan is organized into five Key Focus Areas

(KFAs) and major goals associated with each KFA are also identified below.

Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high-performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve high level of customer satisfaction. Goal 1.5 Utilize technology to enhance efficiency and productivity. Goal 1.6 Collaborate with local, regional, state, and federal partners.

Key Focus Area 2: Public Infrastructure

Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.

Key Focus Area 3: Economic Development

Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth. Goal 3.2 Make Denton a destination for visitors. Goal 3.3 Promote a business-friendly environment. Goal 3.4 Encourage development, redevelopment, recruitment, and retention.

Key Focus Area 4: Safe, Liveable and Family Friendly Community

Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities.

Goal 4.5 Provide support to citizens in need through social service agencies and programs. Key Focus Area 5: Sustainable & Environmental Stewardship

Goal 5.1 Manage Denton’s water resources. Goal 5.2 Improve air quality and greenhouse gas management. Goal 5.3 Improve energy efficiency and conservation. Goal 5.4 Manage land use and preserve open/natural spaces. Goal 5.5 Provide alternative modes of transportation. Goal 5.6 Promote sustainable materials resource management. Goal 5.7 Encourage local food production.

54

STRA TEGIC PLAN 201 7-18

The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization.

While every department has some level of responsibility for each KFA, the matrix is intended to only

highlight the primary departments responsible for each KFA.

SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5

UTILITIES Electric

Water Wastewater Solid Waste INTERNAL SERVICES Technology Services Materials Management Fleet Risk NEIGHBORHOOD SERVICES Building Inspection Community Improvement Services

Libraries Parks and Recreation Planning Gas Well Operations

Community Development

PUBLIC SAFETY Animal Services

Fire

Police

Municipal Court

TRANSPORTATION Airport Streets Traffic/Transportation ADMINISTRATIVE SERVICES City Manager’s Office

Economic Development Facilities Management Finance Human Resources Internal Audit Legal Public Communications Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Economic Development Key Focus Area 4: Safe, Liveable and Family-Friendly Community Key Focus Area 5: Sustainable & Environmental Stewardship

55

STRATEGIC PLAN PERFORMANCE DASHBOARD 2017‐18

KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN PERFORMANCE MEASURES TARGET 4TH QTR

PERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS 85% 94.7%PERCENTAGE OF BILLING ACCURACY 99% 99.97%PERCENTAGE OF PAYMENTS PROCESSED VIA ONLINE SELF‐SERVICE 55% 62.49%PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION 65% 60%NUMBER OF FOLLOWERS ACROSS ALL CITY SOCIAL MEDIA SITES 165,000 214,411PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE 100% 101.7%PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED EXPENDITURES <100% 98.3%ANNUAL RATE OF INVESTMENT RETURN 1.25% 1.73%

ENGINEERING PERCENTAGE OF BOND FUNDED PROJECTS COMPLETED 85% 84%LANE MILES OF ASPHALT ROADWAY RECONSTRUCTED 12 15.87LANE MILES OF ASPHALT ROADWAY OVERLAID 15 16.14LANE MILES OF ASPHALT ROADWAY MICRO‐SEALED 45 0MILES OF SIDEWALK RECONSTRUCTED 2 4.61

AIRPORT NUMBER OF ACRES OF AIRPORT LAND NEWLY LEASED 7 0NUMBER OF RFP'S RETURNED IN TARGET INDUSTRY SECTORS 20 15NUMBER OF WORKFORCE DEVELOPMENT ACTIVITIES OR GRANTS FACILITATED 12 34NUMBER OF DOWNTOWN PROPERTIES REDEVELOPED 6 16NUMBER OF BUSINESS RETENTION VISITS IN THE DOWNTOWN AREA 24 17NUMBER OF BUSINESS RETENTION VISITS IN AREAS OTHER THAN DOWNTOWN 48 43

POLICE PERCENT OF RESOLVED NEIGHBORHOOD COMPLAINTS 75% 100%PERCENT OF ACTIVE STRUCTURE FIRES RESPONDED TO IN FIVE MINUTES OR LESS (NFPA 1710 STANDARD IS 90 PERCENT OR LESS THAN FOUR MINUTES) 90% 51.2%AVERAGE UNIT TURN‐OUT TIME (TIME FROM WHEN A 911 DISPATCH IS RECEIVED TO WHEN UNITS ARE IN ROUTE) 1.20 1.14

PARKS NUMBER OF SPECIAL EVENTS HOSTED BY THE PARKS & RECREATION DEPARTMENT 8 12NUMBER OF INDIVIDUALS REACHED BY THE DENTON PUBLIC LIBRARY "DPL2GO" OUTREACH SERVICE 5,000 21,083NUMBER OF "DPL2GO" OUTREACH EVENTS 60 156

SOLID WASTE POUNDS OF WASTE DISPOSED PER CAPITA 1,900 1,760MILES OF ON‐STREET BIKE INFRASTRUCTURE, SUCH AS BIKE LANES AND SHARROWS, ADDED DURING FISCAL YEAR 2017‐18 7 8.8NUMBER OF TRANSPORTATION SAFETY EDUCATIONAL OPPORTUNITIES AND EVENTS 11 12NUMBER OF SUSTAINABILITY RELATED WORKSHOPS HOSTED BY THE CITY 35 54PERCENT OF GREENSENSE REBATE FUNDING EXPENDED 100% 67%

ENGINEERING

ENVIRONMENTAL SERVICES

KFA 5: SUSTAINABLE AND EVIRONMENTAL

STEWARDSHIP

FINANCE

STREETS

KFA 4: SAFE, LIVEABLE, AND FAMILY‐FRIENDLY

COMMUNITY

FIRE

LIBRARY

KFA 3: ECONOMIC DEVELOPMENT

KFA 1: ORGANIZATIONAL

EXCELLENCE

CUSTOMER SERVICE

PUBLIC COMMUNICATIONS

KFA 2: PUBLIC INFRASTRUCTURE

ECONOMIC DEVELOPMENT

56

STRATEGIC PLAN WORK PLAN REPORT 2017-18

City of Denton, Texas

57

STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18

KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN WORK PLANSTARGET

DATE4TH QTR

Implement online payment and citizen service request systems Dec 2017The application launched June 18, 2018 with a planned 90-day

soft launch.

Launch a bi-monthly newsletter for citizens and stakeholders Dec 2017

The City has continued production of the bimonthly Resident

Update. Past issues can be found at

https://www.cityofdenton.com/en-us/stay-updated under

Important Documents.

Expand open data initiatives and improve citizen access to information Sep 2018There are currently 152 total datasets available at

http://data.cityofdenton.com.

Hold regular performance management meetings with departments and

executive teamSep 2018

Developing an alternative strategy to identify performance

measures that will provide greater clarity into the City's various

operations and be a more effective tool for management staff.

Offer key indicators of the City’s performance through an online

dashboardDec 2017

A dashboard of the City's performance related to strategic plan

measures is located at

http://data.cityofdenton.com/base/strategic-performance-

measures

Evaluate purchasing and contract management policies and procedures Jun 2018

Staff is continue to test a new contract management software

and developing related training materials. In preparation for

implementation staff has developed updated contract

templates.

Complete 80% of construction on the new West Parallel Runway Sep 2018TxDOT solicited construction contract, with construction to

begin FY2018/19 Q1.

Complete the Airport Business Plan Update Sep 2018Drafting documents for Council Airport Committee review,

followed by formal public input process.

TrafficEngage a consultant to assist with review of railroad crossings in the city,

as well as possible Quite ZonesSep 2018

Diagnostic review has been completed and Union Pacific is

currently working on the design of improvements for the Quiet

Zones.

Complete 85% of scheduled street improvement projects for Fiscal Year

2017-18Sep 2018 Completed *84% of the planned projects.*Cumulative Total.

Complete the 2012 and 2014 bond programs for street improvements Sep 2018

During the fourth quarter the Street Department completed 18

bond segments. The total for this fiscal year is 49 segments and

18 non-bond funded segments. The combined total for this

fiscal year is 67 segments.

Econ DevelopmentActively recruit prospects from target industries, as identified by the

Economic Development Partnership BoardSep 2018

Economic Development returned 1 RFP response in Q4, bringing

the total responses to 14, or 70% of the FY17-18 target. Note:

RFPs are issued by the Governor's Office of Economic

Development or the Dallas Regional Chamber. We can only

respond if Denton meets the site criteria in the RFPs.

City Manager Office

KFA 1:

ORGANIZATIONAL

EXCELLENCE

Development

Services

KFA 3: ECONOMIC

DEVELOPMENT

Airport

Capital Projects

KFA 2: PUBLIC

INFRASTRUCTURE

Implement recommendations to improve the development review and

building inspections processesDec 2017

Development Services has implemented a majority of the

consultants recommendations. Staff expects all of the accepted

recommendations to be completed by March 2019.

58



DATE4TH QTR

Complete the Denton Code 2030 Update June 2018

Development Services staff has continued meeting with the

Development Code Review Committee in crafting the Denton

Development Code update. There were a total of 14 meetings

held in Fiscal Year 2017-2018.

Complete updates to building standards and design policies under the

City’s Site Design Criteria Manual and related documentsJune 2018

Staff has continued to receive public comments and will be

adopted in conjunction with the Denton Development Code.

Complete remodel of the Public Safety Communications Center Sep 2018

Waiting on Brinkley Sargent Wigintion Architect's concept plan.

In the meantime, other minor improvements have been made

to facility to include, new paint, new refrigerator and

microwave. Additionally, staff is moving towards replacing

dispatch consoles.

Purchase and implement a new Computer Aided Dispatch (CAD) system

to upgrade technology and improve public safety response, data and

records

June 2018

Police, Fire and Technology Services are currently evaluating

demos from other cities during the month of November. The

committee anticipates a decision to be made on CAD vendor by

end of December.

Implement an Automatic Fire Station Alerting System Sep 2018

Station Alerting is a multi-year strategy with US Digital Designs.

Equipment has been installed at Stations: 1,4,5,6,and 8. Funding

for Station 7 was approved as supplemental request for the FY

18-19 Budget. The Fire Department is currently working on

obtaining updated quotes for installation.

Add on Fire Medic unit in the Northeast Denton area June 2018 The Medic unit at Station 4 is in service.

Complete construction of Fire Station #4 March 2018

The training facility project had substantial completion at the

end of September 2018. A grand opening will be held in the fall

of 2018. Classes will begin the week of October 8, 2018.

Upcoming classes include a department wide Standpipe Class in

the Tower and Live Fire Training the first full week of November

2018.

Use GIS mapping to determine population distribution in relation to City

recreational amenitiesSep 2018 Staff is working with GIS to provide maps.

Implement recommendations from Denton Parks playground

replacement planSep 2018

Playgrounds delivered. Work in progress for Milam, Denia, and

Fred Moore playgrounds. Estimated completion is Dec. 2018.

Delayed from original estimate due to weather.

Community

Development

Continue partnership with the Denton County Homeless Leadership

team to collect and analyze data on housing and service needsSep 2018

In partnership with the Denton County Homeless Leadership

Team (HLT) , the Mayor, Council Member K. Briggs, and CD staff

contributed a total of 17 hours at HLT meetings and planning

sessions. City Staff contributed a minimum of 91 additional

hours to support the HLT through the HLT Ad-Hoc, Housing, and

Data Workgroups in meetings and in activities to collect and

analyze data on housing and service needs.

Development

Services

KFA 3: ECONOMIC

DEVELOPMENT

Parks

KFA 4: SAFE, LIVEABLE,

AND FAMILY-FRIENDLY

COMMUNITY

Public Safety

Fire

59



DATE4TH QTR

Develop a comprehensive public education program to educate

residents on code requirementsSep 2018

Development Services continues to receive feedback, educate

stakeholders on the Denton Development Code Update, Public

Draft and Draft Zoning Map, adoption of the 2018 building

construction & fire codes and updated food establishment

rules. The Department continues to develop a comprehensive

public education outreach program.

Engage homeowner's associations and neighborhood groups to improve

neighborhoods through code complianceSep 2018

During the fourth quarter Development Services staff continue

to attend special events and neighborhood meetings, receiving

feedback on the DDC update and Draft Zoning Map, and

promoting the Neighborhood Project Matching Grant.

Electric Complete construction of the Denton Energy Center Sep 2018

The Denton Energy Center (DEC) construction is 100%

complete. DME received notification from ERCOT on July 11,

2018 that the DEC had successfully passed the final step in the

ERCOT Resource Commissioning Requirements and that it was

officially approved for participation in ERCOT market

operations. Security wall fencing and overall site restoration

activities were ongoing and are targeted to be complete in first

Quarter of FY18/19. Approximately 94% of originally budgeted

DEC project funds have been expended. Final new construction

punch list items are being knocked out, and a few initial

warranty services have commenced.

Solid Waste Complete construction of Cell 3 to expand capacity at the landfill Sep 2018

The landfill cell construction was completed in Q2, and waste

disposal activities have commenced in the new cell. The project

is complete.

Environmental

ServicesEngage the community and update the City's 2012 Sustainability Plan March 2018

Staff has completed draft is working on design of document for

presentation to public

ElectricReview the City's renewable energy portfolio and present options to

increase renewable energyDec 2017

DME’s progress towards contracting 100% renewable energy by

2020 has continued through Q4 with additional renewable

resource readiness preparation for solar and participation in

solicitations for additional renewable supply offers. DME

anticipates that more supply contracts will be ready for

approval by City Council and executed prior to calendar year

end, ensuring that the 2020 objective remains on track. DME

continuously assesses the market place and technologies, for

opportunities to secure renewable resources, that are

operationally effective, at price levels and with terms that will

be incrementally valuable to the rate payers and citizens of

Denton.

Development

Services

KFA 5: SUSTAINABLE

AND ENVIRONMENTAL

STEWARDSHIP

KFA 4: SAFE, LIVEABLE,

AND FAMILY-FRIENDLY

COMMUNITY

60

SculpturebyJamesSurlsattheCivicCenter

61