Quarterly Investment Report December 31, 2016

Transcription

1 Quarterly Investment Report December 31, 2016

2 Closing Out A Surprising Year The beginning of the year was full of anticipation for a growing economy. The Federal reserve had raised rates off the interminable zero percent in the shared belief of slow but sustainable growth and improving employment. And then reality set in and the growth continued but ever so moderately. The employment rate kept falling but we were unsure if people had simply given up (participation rate) or employers were still not convinced enough to actually hire new workers. Of course the vitriolic election rhetoric did nothing to calm nerves or encourage change until that fateful day in November. Meanwhile interest rates kept slowly rising as the market cautiously moved to push the Fed further. The US rates were held down by the significant difference in our rates versus the rest of the world. Even low positive rates in US Treasuries and agencies outshined negative rates in strong global sovereigns bonds. The 10- year German bond stayed at negative levels much of the year. The US construction arena is especially strong showing an increase of 0.9%. Strong growth in single family starts and non-residential construction could be getting support from increasing mortgage rates, which are pushing buyers to commit. In addition, the ISM (Institute of Supply Management) is up significantly to its highest rate in 2 years (54.7). This was even stronger than regional fed reports had indicated for the past quarter. Jumps in orders and production led the way giving a welcome year-end boost. Naturally the strength of the US dollar will continue to undercut our goods against other currencies. for awhile longer at least. Helping the trend was an uptick in local government spending after a mid-year pull back However, since the election in early November, not only the markets but the economy itself has been moving more positively. Two key areas construction and manufacturing which had up and down motions throughout the year, are both moving strongly forward. The has been a uniform surge in US business as well as consumer survey since November.

3 Global Underpinnings of Growth As part of the growth in the US the worker has seen an uptick in personal income and responded as our consumers normally do with increased spending, which aides the consumer retail and staples areas. The markets in the US surged as investors moved money out of bonds to riskier assets (stocks) on plans espoused by the new administration. There remains however some nervousness about the impact of trade policy changes for both US and international products. General global growth has also aided this general upward growth trajectory. German CPI doubled in the last quarter fed somewhat by higher oil prices. The internal strife between OPEC and non-opec members started to move prices up at yearend but they had remained low for most of the quarter. The German unemployment rate also continued to decline even with the inflow of immigrants. In the UK, manufacturing jumped to its fastest pace in 2.5 years.. China, always a mystery because of fabricated data, continues to spur growth. Instead of the devaluing/supporting of the yuanthat was attempted earlier in the year, the Chinese have now downgraded the US dollar. They accomplished this by dropping the weight of the USD in their basket of currencies which define the yuan. This lessens their need to devalue the yuanin case of a trade war. Pensions remain on everyone s mind as Dallas lead the news with its formidable underfunding. The Center for State and Local Gov t Excellence notes that 74% of states and 57% of large localities cut of benefits between 2009 and Most cuts going to new employees. With 25% cutting COLA adjustments. A notable bright spot was Puerto Rico s new President who entered office cutting expenses and balancing budgets. PR utilities paid their $192.5million interest in January which is an excellent sign of progress. Hopefully 2017 will see continuing efforts in that direction. The bailout of the Italian bank, Monte Peschi, has begun but leading governments worldwide have $7.7 trillion in debt maturing in That will be a real test of underlying strength globally.

4 Rates in 2016 It seems appropriate at the end of the year to look back, by quarter, to the moves during For all the turmoil, the curve is only slightly higher than during the euphoria of the first rate increase and expected robust economy in December Reality knocked the curve back substantially as did the cacophony of the election in March. Brexitand ever mounting election rhetoric drove yields even lower in June as did new changes in banking regulations and changes to the structure of money market funds. October was in a wait and see position for the elections. Finally, in December, the FOMC had raised rates once again as expected and a new administration was being formed promising reduced regulations and tax reform, which boosted the animal spirits, set the Dow and NASDAQ to record highs, and moved money out of thetreasury market towards more risk and yield. It drove rates to heights not seen in years. 3.50% 3.00% P e r c e n t 2.50% 2.00% 1.50% 1.00%. Dec-16 Oct-16 Jun-16 Mar-16 Dec % % Fed Funds 3mo 6mo 1yr 2yr 5yr 10yr 30yr End of Month Rates - Full Yield Curve Fed Funds to 30yr

5

6 Your Portfolio As of December 31, 2016 P&A constantly reviews your portfolio for optimal asset allocation and a controlled average maturity because a diversified portfolio can better adjust to volatile market conditions. The very short-term rates have moved up in the last quarter offering some opportunities for diversification especially for those with access to commercial paper. Past one year there are many more alternatives as rates creep up. Texas Daily % Brokered CDs 4.499% Munis 0% T-Notes 3.044% Agencies % MBS 3% CDs 1.510% Banks remain uninterestedin new deposits and municipal debt has become less attractive as the supply of new munibonds dries up. Few outperform the agencies at this point in time. MM % It is still time to reduce cash balances and stretch out longer and into the two year area if possible. The non-cash portion of your portfolio is yielding 0.82%.

7 Portfolio Management Portfolio Summary December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Investments Par Value Market Value Book Value % of Portfolio Term Days to 365 Equiv. Certificates of Deposit - Bank 496,00 497, , , Federal Agency Coupon Securities 9,500,00 9,507, ,516, Treasury Coupon Securities 1,000,00 998, , Brokered CD's 1,478,00 1,476, ,478, Mortgage Backed Securities ,748 2,274 0 Texas Term TexasDaily 10,629, ,629, ,629, Money Market Funds 9,730, ,730, ,730, Investments 32,834, ,840, ,849, % Cash and Accrued Interest Accrued Interest at Purchase Subtotal Total Cash and Investments 32,834, ,841, ,850, Total Earnings Current Year December 31 Month Ending 16, Fiscal Year To 106, The following reports are submitted in accordance with the Public Funds Investment Act (Texas Gov't Code 2256). The reports also offer supplemental information not required by the Act in order to fully inform the governing body of the San Antonio River Authority of the position and activity within the Authority's portfolio of investment. The reports include a management summary overview, a detailed inventory report for the end of the period, a transaction report, as well as graphic representations of the portfolio to provide full disclosure to the governing body. Deborah Korinchock, Director of Support Services Reporting period 12/01/ /31/2016 Data Updated: SET_SARA: 01/13/ :27 Run : 01/13/ :28 PM (PRF_PM1) 7.3.0

8 Summary by Type December 31, 2016 Grouped by Fund Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Security Type Number of Investments Par Value % of Portfolio Average 365 Average Days to Fund: Debt Service Federal Agency Coupon Securities 2 1,000,00 1,000, Fund: General Fund Subtotal 2 1,000,00 1,000, Brokered CD's 2 490,00 490, Certificates of Deposit - Bank 2 496,00 496, Federal Agency Coupon Securities 9 5,500,00 5,516, Money Market Funds 1 9,730, ,730, Mortgage Backed Securities ,274 Treasury Coupon Securities 1 500,00 499, Texas Term TexasDaily 1 10,629, ,629, Fund: Insurance Subtotal 17 27,346, ,362, Federal Agency Coupon Securities 1 500,00 500, Treasury Coupon Securities 1 500,00 499, Fund: Salatrillo Const & Imp Subtotal 2 1,000,00 999, Brokered CD's 2 494,00 494, Federal Agency Coupon Securities 2 1,000,00 1,000, Fund: SARA Wastewater System Subtotal 4 1,494,00 1,494, Brokered CD's 2 494,00 494, Federal Agency Coupon Securities 1 500,00 500, Fund: SARA WW System Const & Imp Subtotal 3 994,00 994, Run : 01/13/ :36 ST (PRF_ST) 7.2.0

9 Summary by Type December 31, 2016 Grouped by Fund Page 2 Security Type Number of Investments Par Value % of Portfolio Average 365 Average Days to Fund: SARA WW System Const & Imp Federal Agency Coupon Securities 2 1,000,00 999, Subtotal 2 1,000,00 999, Total and Average 30 32,834, ,849, Run : 01/13/ :36 ST (PRF_ST) 7.2.0

10 Fund DS - Debt Service Investments by Fund December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX CUSIP Investment # Issuer Federal Agency Coupon Securities Purchase Par Value Market Value 3133EAA FFCB Note 05/25/ , ,00 499, /15/ FPLB FNMA Note 11/10/ , ,00 500, /05/ Current Rate Days To Subtotal and Average 1,000, ,000,00 999, Total Investments and Average 1,000, ,000,00 999, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

11 Fund GEN - General Fund Investments by Fund Page 2 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Certificates of Deposit - Bank T Discover Bank CD 04/04/ ,00 248,00 248, /04/ AKQ Goldman Sachs CD 02/22/ ,00 248,00 248, /22/ Subtotal and Average 496,00 496,00 497, Federal Agency Coupon Securities 31331XZB FFCB Note 11/10/2015 1,016, ,000,00 1,017, /18/ EGEP FFCB Note 06/27/ , ,00 499, /13/ N FHLB Note 04/29/ , ,00 500, /10/ A7UG FHLB Note 04/29/ , ,00 499, /26/ A8LC FHLB Note 06/27/ , ,00 499, /27/ G3Y FHLMC Call Note 11/28/ ,00 500,00 499, /28/ G32T FHLMC Call Note 12/28/ ,00 500,00 499, /28/ G9VV FHLMC Call Note 07/12/2016 1,000,00 1,000,00 995, /12/ G9M FHLMC Call Note 07/27/ ,00 500,00 499, /27/ Subtotal and Average 5,516, ,500,00 5,510, Treasury Coupon Securities J T Note 05/25/ , ,00 500, /28/ Subtotal and Average 499, ,00 500, Brokered CD's 07370T2H Beal Bank CD FDIC# /06/ ,00 245,00 245, /05/ PQC Compass Bank CD FDIC# /01/ ,00 245,00 245, /31/ Subtotal and Average 490,00 490,00 490, Mortgage Backed Securities 31358TF FNR D 06/29/ /25/2023 2,274 Subtotal and Average ,274 Texas Term TexasDaily Texas Term TexasDaily 09/01/ ,629, ,629, ,629, Subtotal and Average 10,629, ,629, ,629, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

12 Fund GEN - General Fund Investments by Fund Page 3 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Money Market Funds A Fidelity Govt Inst MM (FRGXX) 09/15/2016 9,730, ,730, ,730, Subtotal and Average 9,730, ,730, ,730, Total Investments and Average 27,362, ,346, ,358, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

13 Fund INS - Insurance Investments by Fund Page 4 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Federal Agency Coupon Securities 3134G6AC FHLMC Note 11/10/ , ,00 500, /28/ Subtotal and Average 500, ,00 500, Treasury Coupon Securities UR T Note 10/31/ , ,00 498, /28/ Subtotal and Average 499, ,00 498, Total Investments and Average 999, ,000,00 999, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

14 Fund SALACI - Salatrillo Const & Imp Investments by Fund Page 5 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Federal Agency Coupon Securities VE FHLB Note 11/10/ , ,00 500, /19/ G8ML FHLMC Call Note 02/24/ ,00 500,00 499, /24/ Subtotal and Average 1,000, ,000,00 1,000, Brokered CD's 29367RJD Enterprise Bank CD FDIC# /30/ ,00 247,00 246, /29/ DU Everbank Jcksnville FDIC# /03/ ,00 247,00 246, /27/ Subtotal and Average 494,00 494,00 493, Total Investments and Average 1,494, ,494,00 1,493, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

15 Fund SARAWWS - SARA Wastewater System Investments by Fund Page 6 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Federal Agency Coupon Securities 3137EADV FHLMC Note 04/29/ , ,00 500, /14/ Subtotal and Average 500, ,00 500, Brokered CD's FS First Bk Richmond FDIC# /30/ ,00 247,00 246, /29/ QCG Brookline Bank CD FDIC# /30/ ,00 247,00 246, /29/ Subtotal and Average 494,00 494,00 492, Total Investments and Average 994, ,00 992, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

16 Fund SARAWWSCI - SARA WW System Const & Imp Investments by Fund Page 7 December 31, 2016 CUSIP Investment # Issuer Purchase Par Value Market Value Current Rate Days To Federal Agency Coupon Securities 3133EGG FFCB Note 11/15/ , ,00 498, /14/ A97F FHLB Call Note 09/12/ ,00 500,00 498, /12/ Subtotal and Average 999, ,000,00 996, Total Investments and Average 999, ,000,00 996, Run : 01/13/ :36 FI (PRF_FI) 7.1.1

17 Cash Reconciliation Report For the Period October 1, December 31, 2016 Grouped by Fund Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Trans. Trans. Investment # Fund Type Security ID Par Value Security Description Purchases Interest Redemptions Cash Debt Service 11/15/ DS Interest 3133EAA32 500,00 FFCB 0.5M 0.90% Mat. 11/15/ /15/2017 2,25 2,25 12/09/ DS Interest PV2 500,00 FHLB 0.5M 1.63% Mat. 12/09/ /09/2016 4, , /09/ DS PV2 500,00 FHLB 0.5M 1.63% Mat. 12/09/ /09/ ,00 500,00 General Fund Subtotal 6, ,00 506, /04/ GEN Interest T5 248,00 DISCBK 0.2M 1.75% Mat. 04/04/2017 2, , /25/ GEN Sale 31358TF46 2, M % 03/25/ /26/ GEN Interest 3130A7UG8 500,00 FHLB 0.5M 0.63% Mat. 04/26/ /26/2017 1, , /27/ GEN Interest 3134G9M38 500,00 FHLMCC 0.5M 0.70% Mat. 10/27/ /18/ GEN Interest 31331XZB1 1,000,00 FFCB 1.0M 5.05% Mat. 05/18/ /18/ ,25 25,25 11/25/ GEN Sale 31358TF46 2, M % 03/25/ /28/ GEN Interest 3134G3Y53 500,00 FHLMCC 0.5M 0.85% Mat. 11/28/2017 2, , /25/ GEN Sale 31358TF46 2, M % 03/25/ /27/ GEN Interest 3130A8LC5 500,00 FHLB 0.5M 0.63% Mat. 06/27/ /27/2017 1, , /28/ GEN Interest 3134G32T6 500,00 FHLMCC 0.5M 0.77% Mat. 12/28/2017 1, , /30/ GEN Interest 20451PQC3 245,00 COMPBK 0.2M 0.90% Mat. 07/31/2017 1, , Insurance Subtotal 36, , /31/ INS Interest RM4 500,00 TNOTE 0.5M 1.00% Mat. 10/31/ /31/2016 2,50 2,50 10/31/ INS RM4 500,00 TNOTE 0.5M 1.00% Mat. 10/31/ /31/ ,00 500,00 10/31/ INS Purchase UR9 500,00 TNOTE 0.5M 0.75% Mat. 02/28/ /28/ , , Salatrillo Const & Imp Subtotal -499, , ,00 2, /03/ SALACI Purchase 29976DU24 247,00 EVERBK 0.2M 0.85% Mat. 09/27/ , , /30/ SALACI Interest 29367RJD9 247,00 ENTER 0.2M 0.80% Mat. 09/29/ /29/ /30/ SALACI Interest 29367RJD9 247,00 ENTER 0.2M 0.80% Mat. 09/29/ /29/ /19/ SALACI Interest VE6 500,00 FHLB 0.5M 1.01% Mat. 06/19/ /19/2017 2, , /30/ SALACI Interest 29367RJD9 247,00 ENTER 0.2M 0.80% Mat. 09/29/ /29/ SARA Wastewater System Subtotal -247,00 3, , /29/ SARAWWS Interest 11373QCG1 247,00 BROOK 0.2M 0.85% Mat. 12/29/ /29/ SARAWWS Interest 11373QCG1 247,00 BROOK 0.2M 0.85% Mat. 12/29/ /15/ SARAWWS Interest 63165TPL3 1,000,00 NASSAU 1.0M 1.13% Mat. 12/15/ , , Run : 01/20/ :45 AC (PRF_AC) 7.2.0

18 Cash Reconciliation Report For the Period October 1, December 31, 2016 Page 2 Trans. Investment # Fund Trans. Type Security ID Par Value Security Description Purchases Interest Redemptions Cash SARA Wastewater System 12/15/ SARAWWS 63165TPL3 1,000,00 NASSAU 1.0M 1.13% Mat. 12/15/2016 1,000,00 1,000,00 12/29/ SARAWWS Interest 11373QCG1 247,00 BROOK 0.2M 0.85% Mat. 12/29/ SARA WW System Const & Imp Subtotal 17, ,000,00 1,017, /15/ SARAWWS Interest 3135G0ES8 500,00 FNMA 0.5M 1.38% Mat. 11/15/ /15/2016 3, , /15/ SARAWWS 3135G0ES8 500,00 FNMA 0.5M 1.38% Mat. 11/15/ /15/ ,00 500,00 11/15/ SARAWWS Purchase 3133EGG33 500,00 FFCB 0.5M 0.73% Mat. 05/14/ /14/ , , Subtotal -498, , ,00 4, Total -1,245, , ,500, ,323, Run : 01/20/ :45 AC (PRF_AC) 7.2.0

19 Purchases Report Sorted by Fund - Fund October 1, December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX CUSIP Investment # Fund Sec. Type Issuer Insurance UR INS TRC TNOTE Original Par Value Purchase Payment Periods Principal Purchased Accrued Interest Rate at at Purchase Purchase Ending 500,00 10/31/ /28-08/31 499, /28/ , Subtotal 500,00 499, , Salatrillo Const & Imp 29976DU SALACI MC2 EVERBK 247,00 10/03/ /27 - At 247, /27/ ,00 Subtotal 247,00 247, ,00 SARA WW System Const & Imp 3133EGG SARAWWS FAC FFCB 500,00 11/15/ /14-11/14 498, /14/ , Subtotal 500,00 498, , Total Purchases 1,247,00 1,245, ,245, Run : 01/20/ :44 PU (PRF_PU) 7.1.1

20 Report Sorted by Amounts due during October 1, December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Sec. CUSIP Investment # Fund Type Issuer RM4 3135G0ES PV TPL Par Value Purchase Rate at at Interest Proceeds INS TRC TNOTE 500,00 10/31/ /10/ ,00 2,50 502,50 2,50 SARAWWS FAC FNMA 500,00 11/15/ /10/ ,00 3, , , DS FAC FHLB 500,00 12/09/ /10/ ,00 4, , , SARAWWS MC1 NASSAU 1,000,00 12/15/ /02/ ,000,00 17, ,017, , Total Maturities 2,500,00 2,500,00 27, ,527, , Net Income Run : 01/20/ :44 MA (PRF_MA) 7.1.1

21 Sales/Call Report Sorted by - Fund October 1, December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX CUSIP Investment # 03/25/2023 Fund Issuer Purchase Redem. Sec. Type Matur. Par Value Rate at Redem. at Redem. Redemption Principal Redemption Interest Total Amount Net Income 31358TF GEN FNRD 06/29/ /25/ ASB 03/25/2023 Sale 31358TF GEN FNRD 06/29/ /25/ ASB 03/25/2023 Sale 31358TF GEN FNRD 06/29/ /25/ ASB 03/25/2023 Sale Subtotal Total Sales Run : 01/20/ :45 SA (PRF_SA) 7.1.1

22 Interest Earnings Sorted by Fund - Fund October 1, December 31, 2016 Yield on Average Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Adjusted Interest Earnings CUSIP Investment # Fund Security Type Ending Par Value Beginning Average CurrentAnnualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Fund: Debt Service 3136FPLB DS FAC 500,00 502, , /05/ , , EAA DS FAC 500,00 500, , /15/ , , PV DS FAC 500, , /09/ , Subtotal 1,000,00 1,503, ,376, , , , Fund: General Fund 31331XZB GEN FAC 1,000,00 1,026, ,021, /18/ , , , EGEP GEN FAC 500,00 500, , /13/ A8LC GEN FAC 500,00 499, , /27/ A7UG GEN FAC 500,00 499, , /26/ N GEN FAC 500,00 500, , /10/ , J GEN TRC 500,00 499, , /28/ GEN RRP 10,629, ,616, ,620, , , AKQ GEN BCD 248,00 248,00 248,00 02/22/ , , T GEN BCD 248,00 248,00 248,00 04/04/ , , G9VV GEN FAC 1,000,00 1,000,00 1,000,00 01/12/ , , G9M GEN FAC 500,00 500,00 500,00 10/27/ G32T GEN FAC 500,00 500,00 500,00 12/28/ G3Y GEN FAC 500,00 500,00 500,00 11/28/ , , PQC GEN MC2 245,00 245,00 245,00 07/31/ T2H GEN MC2 245,00 245,00 245,00 07/05/ A GEN RR2 9,730, ,921, ,671, , , Subtotal 27,345, ,551, ,299, , , , Fund: Insurance 3134G6AC RM UR INS FAC 500,00 500, , /28/ , , INS TRC 500, , /31/ INS TRC 500,00 336, /28/ Subtotal 1,000,00 1,000, , , , Run : 01/20/ :41 IE (PRF_IE) 7.2.0

23 Interest Earnings October 1, December 31, 2016 Page 2 Adjusted Interest Earnings CUSIP Investment # Fund Security Type Ending Par Value Beginning Average CurrentAnnualized Rate Yield Interest Earned Amortization/ Accretion Adjusted Interest Earnings Fund: Salatrillo Const & Imp VE SALACI FAC 500,00 500, , /19/ , , G8ML SALACI FAC 500,00 500,00 500,00 11/24/ , , RJD SALACI MC2 247,00 247,00 247,00 09/29/ DU SALACI MC2 247,00 241, /27/ Subtotal 1,494,00 1,247, ,489, , , Fund: SARA Wastewater System 3137EADV SARAWWS FAC 500,00 500, , /14/ TPL SARAWWS MC1 1,000,00 815, /15/ , , FS SARAWWS MC2 247,00 247,00 247,00 12/29/ QCG SARAWWS MC2 247,00 247,00 247,00 12/29/ Subtotal 994,00 1,994, ,809, , , Fund: SARA WW System Const & Imp 3135G0ES SARAWWS FAC 500, , /15/ EGG SARAWWS FAC 500,00 254, /14/ A97F SARAWWS FAC 500,00 500,00 500,00 04/12/ , , Subtotal 1,000,00 1,000, , , , Total 32,833, ,297, ,974, , , , Run : 01/20/ :41 IE (PRF_IE) 7.2.0

24 Amortization Schedule October 1, December 31, 2016 Sorted By Fund - Fund Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Investment # Issuer Fund Amort. Beginning Par Value Current Rate Purchase Principal Original Premium or Discount Ending Amounts Amortized And Unamortized As of 10/01/2016 Amount Amortized This Period Amt Amortized Through 12/31/2016 Amount Unamortized Through 12/31/2016 Debt Service DS 11/15/ ,00 500, , FFCB Note DS 12/09/ ,00 505, , , , FHLB Note DS 01/05/ ,00 510, , , , , , FNMA Note , General Fund Subtotal 1,516, , ,000, , , , , GEN 05/18/2017 1,000,00 1,064, , ,016, , , , , FFCB Note , GEN 09/13/ ,00 500, , FFCB Note GEN 03/10/ ,00 501,11 1,11 500, FHLB Note GEN 04/26/ ,00 499, , FHLB Note GEN 06/27/ ,00 499, , FHLB Note GEN 02/28/ ,00 499, , T Note Insurance Subtotal 3,564, , ,516, , , , , , INS 07/28/ ,00 500, , FHLMC Note INS 10/31/ ,00 502, , , , T Note INS 02/28/ ,00 499, , T Note Subtotal 1,501, , , , , Run : 01/20/ :42 AS (PRF_ASW) 7.2.1

25 Amortization Schedule October 1, December 31, 2016 Page 2 Investment # Issuer Fund Amort. Beginning Par Value Current Rate Purchase Principal Original Premium or Discount Ending Amounts Amortized And Unamortized As of 10/01/2016 Amount Amortized This Period Amt Amortized Through 12/31/2016 Amount Unamortized Through 12/31/2016 Salatrillo Const & Imp SALACI 06/19/ ,00 501, , , , FHLB Note SARA Wastewater System Subtotal 501, , , , SARAWWS 07/14/ ,00 500, , FHLMC Note SARA WW System Const & Imp Subtotal 500, , SARAWWS 05/14/ ,00 498, , , FFCB Note , SARAWWS 11/15/ ,00 504, , , , FNMA Note Subtotal 1,003, , , , , Total 8,587, , ,015, , , , , , Run : 01/20/ :42 AS (PRF_ASW) 7.2.1

26 Projected Cashflow Report Sorted by Monthly For the Period January 1, July 31, 2017 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Projected Trans. January 2017 Transaction Investment # Fund Security ID Type Issuer Par Value Original Cost 01/05/ DS 3136FPLB1 FNMA Note 500,00 510, ,00 6,25 506,25 01/12/ GEN 3134G9VV6 Interest FHLMC Call Note 4,25 4,25 01/12/ GEN 3134G9VV6 Call FHLMC Call Note 1,000,00 1,000,00 1,000,00 1,000,00 01/14/ SARAWWS 3137EADV8 Interest FHLMC Note 1, , /27/ GEN 3134G9M38 Call FHLMC Call Note 500,00 500,00 500,00 500,00 01/28/ INS 3134G6AC7 Interest FHLMC Note 2, , /29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# February 2017 Principal Interest Total for January ,000,00 2,010, ,000,00 14, ,014, /22/ GEN 38143AKQ7 Goldman Sachs CD 248,00 248,00 248,00 2, , /24/ SALACI 3134G8ML0 Interest FHLMC Call Note 2, , /24/ SALACI 3134G8ML0 Call FHLMC Call Note 500,00 500,00 500,00 500,00 02/28/ GEN J35 T Note 500,00 499, ,00 1,25 501,25 02/28/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# /28/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /28/ INS UR9 Interest T Note 1, , March 2017 Total for February ,248,00 1,247, ,248,00 7, ,255, /10/ GEN N0 FHLB Note 500,00 501,11 500,00 2, , /13/ GEN 3133EGEP6 Interest FFCB Note 1, , /29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# /30/ SARAWWS FS4 Interest First Bk Richmond FDIC# , , April 2017 Total for March ,00 501,11 500,00 5, , /04/ GEN T5 Discover Bank CD 248,00 248,00 248,00 2, , /12/ SARAWWS 3130A97F2 Interest FHLB Call Note 2, , /12/ SARAWWS 3130A97F2 Call FHLB Call Note 500,00 500,00 500,00 500,00 04/26/ GEN 3130A7UG8 FHLB Note 500,00 499, ,00 1, , Total Run : 01/20/ :46 PC (PRF_PC) 7.2.0

27 Projected Cashflow Report For the Period January 1, July 31, 2017 Page 2 Projected Trans. April 2017 Transaction Investment # Fund Security ID Type Issuer Par Value Original Cost 04/27/ GEN 3134G9M38 Interest FHLMC Call Note 1,75 1,75 04/29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# May 2017 Principal Interest Total for April ,248,00 1,247, ,248,00 8, ,256, /14/ SARAWWS 3133EGG33 Interest FFCB Note 1, , /15/ DS 3133EAA32 Interest FFCB Note 2,25 2,25 05/18/ GEN 31331XZB1 FFCB Note 1,000,00 1,064, ,000,00 25,25 1,025,25 05/28/ GEN 3134G3Y53 Interest FHLMC Call Note 2, , /29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# June 2017 Total for May ,000,00 1,064, ,000,00 31, ,031, /19/ SALACI VE6 FHLB Note 500,00 501, ,00 2, , /27/ GEN 3130A8LC5 FHLB Note 500,00 499, ,00 1, , /28/ GEN 3134G32T6 Interest FHLMC Call Note 1, , /29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ GEN 20451PQC3 Interest Compass Bank CD FDIC# , , /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# July 2017 Total for June ,000,00 1,001, ,000,00 7, ,007, /05/ GEN 07370T2H5 Beal Bank CD FDIC# ,00 245,00 245,00 1, , /12/ GEN 3134G9VV6 Interest FHLMC Call Note 4,25 4,25 07/14/ SARAWWS 3137EADV8 FHLMC Note 500,00 500,18 500,00 1, , /28/ INS 3134G6AC7 FHLMC Note 500,00 500, ,00 2, , /29/ SARAWWS 11373QCG1 Interest Brookline Bank CD FDIC# /30/ SALACI 29367RJD9 Interest Enterprise Bank CD FDIC# /31/ GEN 20451PQC3 Compass Bank CD FDIC# ,00 245,00 245, , Total for July ,490,00 1,490, ,490,00 10, ,500, Total GRAND TOTALS: 8,486,00 8,562, ,486,00 86, ,572, Run : 01/20/ :46 PC (PRF_PC) 7.2.0

28 Texas Compliance Change in Val Report Sorted by Fund October 1, December 31, 2016 Patterson & Associates 901 S. MoPac Suite 195 Austin, TX Inv # Issuer Fund Purch Interest Accrual Cusip Par Value Mat Interest Received Fund: Debt Service Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value FHLB DS 11/10/2015 1, , ,00-500, PV2 0 12/09/2016 4, , ,00-501, FNMA DS 11/10/2015 3, , , , FPLB1 500, /05/ , , , FFCB DS 05/25/2016 1, , , EAA32 500, /15/2017 2, , , Sub Totals For: Fund: Debt Service 5, ,503, ,00-503, ,000, , ,505, ,00-505, , Fund: General Fund TXTERM GEN 09/01/ , ,616, , , ,629, ,629, / / 12, ,616, , , ,629, FIDPRI GEN 09/01/ / / FIDGOV GEN 09/15/2016 8, ,921, , ,200,00-3,191, ,730, A 9,730, / / 8, ,921, , ,200,00-3,191, ,730, GSACHS GEN 02/22/2012 1, ,00 248, AKQ7 248, /22/ , , TNOTE GEN 05/25/ , , J35 500, /28/ , , FHLB GEN 04/29/2016 1, , , N0 500, /10/ , , Run : 01/20/ :48 TC (PRF_TC) 7.0

29 Texas Compliance Change in Val Report October 1, December 31, 2016 Page 2 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value DISCBK GEN 04/04/2012 1, ,00 248, T5 248, /04/2017 2, , , FHLB GEN 04/29/ , , A7UG8 500, /26/2017 1, , , FFCB GEN 11/10/ , ,026, , ,016, XZB1 1,000, /18/ ,25 1,028, , ,017, FHLB GEN 06/27/ , , A8LC5 500, /27/2017 1, , , BEALPL GEN 07/06/ ,00 245, T2H5 245, /05/ , , COMPBK GEN 07/01/ ,00 245, PQC3 245, /31/2017 1, , , FFCB GEN 06/27/ , , EGEP6 500, /13/ , , FHLMCC GEN 07/27/ ,00 500, G9M38 500, /27/ , , FHLMCC GEN 11/28/2012 1, ,00 500, G3Y53 500, /28/2017 2, , , FHLMCC GEN 12/28/ ,00 500, G32T6 500, /28/2017 1, , , FHLMCC GEN 07/12/2016 2, ,000,00 1,000, G9VV6 1,000, /12/ , , , FNRD GEN 06/29/ TF /25/ Run : 01/20/ :48 TC (PRF_TC) 7.0

30 Texas Compliance Change in Val Report October 1, December 31, 2016 Page 3 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value Sub Totals For: Fund: General Fund 46, ,551, , ,200, ,189, ,362, , ,556, , ,200, ,198, ,358, Fund: Insurance TNOTE INS 11/10/ , ,00-500, RM4 0 10/31/2016 2,50 500, ,00-500, FHLMC INS 11/10/2015 1, , , G6AC7 500, /28/ , , TNOTE INS 10/31/ , , , UR9 500, /28/ , , , Sub Totals For: Fund: Insurance 2, ,000, , , , ,50 1,001, , ,00-1, , Fund: Salatrillo Const & I FHLB SALACI 11/10/2015 1, , , VE6 500, /19/2017 2, , , EVERBK SALACI 10/03/ ,00 247,00 247, DU24 247, /27/ ,00 246, , ENTER SALACI 09/30/ ,00 247, RJD9 247, /29/ , , FHLMCC SALACI 02/24/2016 1, ,00 500, G8ML0 500, /24/ , , Sub Totals For: Fund: Salatrillo Const & I 3, ,247, ,00 246, ,494, , ,248, ,00 245, ,493, Fund: SARA Wastewater Syst NASSAU SARAWWS 06/02/2015 2, ,000,00 1,000,00-1,000, TPL3 0 12/15/ , ,000,95 1,000,00-1,000,95 Run : 01/20/ :48 TC (PRF_TC) 7.0

31 Texas Compliance Change in Val Report October 1, December 31, 2016 Page 4 Inv # Issuer Fund Purch Interest Accrual Cusip Par Value Mat Interest Received Beginning Beginning Market Value Purchases/ Additions Redemptions Change in Value Ending Ending Market Value FHLMC SARAWWS 04/29/ , , EADV8 500, /14/ , , BKRICH SARAWWS 09/30/ ,00 247, FS4 247, /29/ , , BROOK SARAWWS 09/30/ ,00 247, QCG1 247, /29/ , , FNMA SARAWWS 11/10/ , ,00-500, G0ES8 0 11/15/2016 3, , ,00-500, FHLBC SARAWWS 09/12/2016 1, ,00 500, A97F2 500, /12/ , , , FFCB SARAWWS 11/15/ , , , EGG33 500, /14/ , , , Sub Totals For: Fund: SARA WW System Const 6, ,994, , ,500,00-1,001, ,993, , ,996, , ,500,00-1,006, ,989, Report Grand Totals: 64, ,297, ,267, ,700, ,447, ,849, , ,307, ,267, ,700, ,466, ,840, Run : 01/20/ :48 TC (PRF_TC) 7.0