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Item 3B1 Monthly Financial ReportCITY OF SOUTHLAI<,.-E MONTHLY FINANCIAL REPORT 11 1 September 2023 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference MEL General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (2 moms prior activity) Positive Positive Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Positive Page 4 Departmental Expenditures Summary Positive Positive Page 5 PERFORMANCE•• Positive Warning Negative = Positive variance or negative variance <1 % compared to seasonal trends. = Negative variance of 1-4% compared to seasonal trends = Negative Variance of > 4% compared to seasonal trends. ME - City of Southlake Monthly Financial Report 1 10/12/2023 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: 2.1% GDP is defined as the output of goods and FINANCIAL ACTIVITY services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the estimated 5 YEAR TREND OF • • GDP for the 2nd quarter of 2023 increased at a $250,000,000 rate of 2.1%. In the 1st quarter of 2023, GDP increased at a rate of 2.2%. Housing Starts: 4 11.30% $200,000,000 Housing starts in August were at a seasonally adjusted rate of 1,283,000, which is 11.3% below the revised previous month figure of 1,447,000 and 14.8% below the August 2022 rate of 1,505,000. $150,000,000 UNEMPLOYMENT RATES National: V 3.8% $100,000,000 The National Unemployment rate for September 2023 remainded unchanged at 3.8% when compared to August 2023. $50,000,000 State-wide: V 4.1% The Texas Unemployment rate for August 2023 (preliminary) remained unchanged at 4.1 % from . h Jv 9n93 $- -W Area: V 4.2% 1 2019* 2020* 2021* 2022* 2023* *October - September New Construction permit values ie Dallas/Fort Worth/Arlington Metropolitan Area iemployment rate for August 2023 (preliminary) ;reased slightly to 4.2% when compared to 4.1 % July 2023. City of Southlake Monthly Financial Report 2 10/12/2023 GENERALFUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2022 FY 2023 $18,000,000 FY 2023 REVENUE EXPENDITURE VARIANCE FY 2023 REVENUE FY 2023 EXPENDITURE 2022 EXPEND. Oct $ 604,909 $ 2,824,040 $ (2,219,131) $16,000,000 Nov $ 2,466,143 $ 3,685,749 $ (1,219,606) $14,000,000 Dec $ 7,240,751 $ 4,390,002 $ 2,850,749 Jan $ 15,429,638 $ 3,413,662 $ 12,015,976 $12,000,000 Feb $ 10,368,200 $ 3,355,416 $ 7,012,784 $10,000,000 Mar $ 2,797,920 $ 3,506,641 $ (708,721) Apr $ 2,312,660 $ 3,880,022 $ (1,567,362) $8,000,000 May $ 3,643,729 $ 3,882,328 $ (238,599) Jun $ 2,992,758 $ 4,469,034 $ (1,476,276) $6,000,000 Jul $ 1,347,991 Aug $ 2,736,098 $ 5,036,735 $ 3,726,550 $ (3,688,744) $ (990,452) $4,000,000 — _ 4 — Sep $ 2,149,047 $ 5,135,479 $ (2,986,432) $2,000,000 '� W—W� Tot $ 54,089,844 $ 47,305,658 $ 6,784,186 $_ ■ Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The outlook for the year is positive as overall revenues and expenditures are on target with budget. The revenues are higher than expenditures by approximately $6.8M. REVENUE ANALYSIS GENERAL FUND SALES TAX 2023-2021 COMPARISON FY 2023 FY 2022 FY 2021 � FY 2023 � FY 2022 FY 2021 Oct $ 1,814,981 $ 1,613,415 $ 1,299,576 $3,000,000 Nov $ 1,813,575 $ 1,652,674 $ 1,084,677 Dec $ 2,507,299 Jan $ 1,539,514 $ 2,456,532 $ 1,602,323 $ 1,926,407 $ 1,256,119 $2,500,000 Feb $ 1,436,621 $ 1,388,859 $ 978,395 $2,000,000 ' Mar $ 1,836,177 $ 1,975,175 $ 1,727,925 Apr $ 1,708,466 May $ 1,745,742 $ 1,714,270 $ 1,725,777 $ 1,470,896 $ 1,262,973 $1,500,000 I , ` ` ' �� Jun $ 1,819,551 $ 1,792,755 $ 2,586,036 $1,000,000 Jul $ 1,620,652 $ 1,607,427 $ 1,449,136 11 Aug $ 2,618,139 $ 1,659,141 $ 1,427,525 $500,000 Sep $ - $ 1,640,639 $ 1,687,605 Tot $ 20,460,717 $ 20,828,987 $ 18,1S7,270 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year to date sales tax collections are trending above FY 2022 (6.6%) and FY 2021 (24.2%) collections. August collections were 57.8% and 83.4% higher than August collections for FY 2022 and FY 2021, respectively. August 2023 collections included an audit adjustment which represented 36% of the collections for the month. Year to date collections are above budget for the yea therefore the outlook is consdiered postiive. Staff will coninue to closely mointor collections. City of Southlake Monthly Financial Report 3 10/12/2023 GENERALFUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2023 FY 2022 FY 2021 ■ FY 2023 ■ FY 2022 FY 2021 Oct $ 380,169 $ 653,703 $ 778,578 $14,000,000 Nov $ 2,011,080 $ 2,017,203 $ 1,582,957 $12,000,000 Dec $ 4,964,620 $ 6,068,454 $ 6,036,699 $10,000,000 Jan $ 12,756,146 $ 11,588,414 $ 13,167,125 $8,000,000 Feb $ 6,290,070 $ 5,872,247 $ 4,445,041 Mar $ 560,775 $ 584,684 $ 411,151 $6,000,000 Apr $ 221,968 $ 554,247 $ 259,058 $4,000,000 May $ 158,917 $ 151,717 $ 152,945 $2,000,000 Jun $ 502,789 $ 502,344 $ 389,839 $- Jul* $ (1,226,605) $ (1,310,741) $ (1,365,991) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May JunJulAug Aug $ 69,910 $ 69,630 $ 52,655 $14,000,000) Sep $ 35,576 $ 111,205 $ 190,848 Tot 5 26,725,415 $ 26,863,107 $ 26,100,905 * Net transfer of TIF CHART OUTLOOK: POSITIVE revenues to TIF fund 2023 YTD property tax collections ($26,725,415) are approximately 0.51 % less than 2022 YTD ($26,863,107) and 2.39% higher than 2021 YTD ($26,100,905), respectively as of September. As indicated on the chart, the majority of the property tax revenue is collected in the second quarter of the fiscal year. YTD collections are slightly below budget (0.71 %). PERMIT REVENUE 2023-2021 COMPARISON FY 2023 FY 2022 FY 2021 iiiiiiiiiiiiiiiiFY2023 iiiiiiiiiiiiiiiiFY2022 FY 2021 Oct $ 137,332 $ 214,445 5 50,043 $900,000 Nov $ 118,803 $ 185,109 $ 69,734 Dec $ 88,212 $ 94,663 $ 102,515 $800,000 Jan $ 231,884 $ 167,045 $ 88,737 $700,000 Feb $ 249,097 $ 111,545 $ 76,270 Mar $ 98,675 $ 154,046 $ 150,142 $600,000 Apr $ 77,670 $ 277,691 $ 124,870 $500,000 May $ 187,731 $ 788,270 $ 136,364 $400,000 Jun $ 143,738 $ 133,244 $ 158,786 Jul $ 92,872 $ 192,902 $ 170,985 $300,000 Aug $ 157,382 $ 154,833 $ 221,982 $100,000 Sep $ 157,382 $ 154,833 5 221,982 , Tot $ 1,719,924 $ 2,658,371 $ 1,568,027 $100,000 ■� �� CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($144M+) issued for FY 2023 YTD is approximately 19.7% less than FY 2022 and 7.5% higher than FY 2021 permit values. FY 2023 YTD permit revenue is 35.3% below and 9.7% higher when compared to FY 2022 and 2021, respectively. The permit revenue exceeded the budget for the fiscal year therefore the outlook is considered positive. City of Southlake Monthly Financial Report 4 10/12/2023 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY AMENDED FY 2023 ACTUAL FY 2022 ACTUAL FY 2023 FY 2022/2023 YTD YTD YTD BUDGETYTD VARIANCE BUDGETVARIANCE FY2023%SPENT CIAO $ 1,106,349 $ 1,085,236 $ 1,129,452 $ 21,113 $ 23,103 97.95% COMM $ 636,218 $ 513,373 $ 683,825 $ 122,845 $ 47,607 93.04% CS $ 6,695,629 $ 6,036,263 $ 6,913,278 $ 659,366 $ 217,649 96.85% CSO $ 586,834 $ 587,116 $ 635,932 $ (282) $ 49,098 92.28% DPS $ 21,585,917 $ 12,347,352 $ 21,808,318 $ 9,238,565 $ 222,401 98.98% ED $ 332,838 $ 300,349 $ 361,748 $ 32,489 $ 28,910 92.01% FIN $ 2,784,181 $ 2,526,803 $ 2,916,942 $ 257,378 $ 132,761 95.45% HR $ 953,812 $ 870,558 $ 1,033,494 $ 83,254 $ 79,682 92.29% IT $ 3,083,692 $ 2,871,969 $ 3,389,208 $ 211,723 $ 305,516 90.99% PDS $ 2,452,604 $ 2,299,498 $ 2,565,414 $ 153,106 $ 112,810 95.60% PW $ 5,168,885 $ 4,642,218 $ 5,279,118 $ 526,667 $ 110,233 97.91% SS $ 1,918,699 $ 1,678,258 $ 2,229,570 $ 240,441 $ 310,871 86.06% Totals $ 47,305,658 $ 35,758,993 $ 48,946,299 $ 11,546,665 $ 1,640,641 96.65% FY 2023 ACTUAL YTD FY 2022 ACTUAL YTD AMENDED FY 2023 BUDGET YTD $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 i $- CMS COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above, 2023 expenditures are above 2022 expenditures for the same period with a increase of 32.3%. The primary reason for the increase is related to the ARPA funding used to pay public safety personnel expenditures. The outlook is positive expenditures are below budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 10/12/2023 EXPERIENCE SOUTHLAKE September 26, 2023 The Marq Financial Review MARQ 76.92% 59.90% + 128.42% Target I ATT 4.40M 5.72M Revenue Expense 1D1112D22 913O12D23 cc 83.08% 6720% I 123 63% Target ATT CEDC FINANCIAL DASHBOARD as or:91261202312:32 PM LH 52.47% 33.50% 156.62% Target + ATT 3.80M 4.51M 6O3.48K 1.15M Revenue Expense Revenue Expense Net Revenue: Current & Previous Year CCR • LHR —Total Revenue LY 400K 47K i7K r 379( 50V 65K 51K 31K 81K 67K 30OK 300K 403( 4K 43K JW 2T1K 257K 2571C 250K _ 2WK 3fm 374K 275C 281K 2B3K 371K 296K 318K 318K 304K 332K 300K 100K The Marq Rentals Revenue (Net) •CCa2enhd-Revenue LH-Rental-Revenue sw 50K 4OK 3OK WK 1uK OK Sep 2022 Od 2022 Nor 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May2023 Jan 2023 JJ 2023 ALB 2023 Sep2023 The Marq Membership Revenue (Net) 250K OK Sep2022 OU2022 Nov2022 Dec= Jan2023 Feh= Mar= AprAM Wy2023 Jm2O23 JJ20M Ag2023 Sep2O23 OK Sep 2022 0c12O22 N-2022 Dec 2022 Jen 2O22 Feb 2022 Mar2023 Pp,2023 May 2023 Jen2023 J.12W3 Pug 2023 Sep 2O23 CHAMPIONS CLUB MEMBERSHIP TRENDS 4000 3580 3561 I 3554 3441 35OL 33713413 000, 3365 3500 329, 3230 3131 3197 3153 3162 3076 2989 I / 3000 2827 i0000 N 26792738 2-2605 2662 I� 2506 2521 2585 ' I / N 2513 2458 2500 2527 2soz /2084 444 cd G 227� 2000 2062 1955 1968 1958 1956 2001 1941 1945 1944 1500 1000 1 1 1 1 1 R I I I I I I■. M�U-) CO I,- M M O N N M"t LO CO I- M O N N M"T LO CO f— M M O N N M"t Lo Mr,- 00 0 0 0 0 0 0 0-- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0--- O O O O O O O O O O O O O O O O O O ========= N N N N N N N N N N N N M M M M M M M M N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Period 900 800 700 600 N 500 .N c m 400 cn - 300 200 100 I MULTI -YEAR MEMBERSHIPS ANALYSIS BY MEMBERSHIP TYPE 1200 3000 1000 931 804 780 788 849 800 2000 588 6 0 600 479 379 2 1000 400 2 74 - 94 200 11282 01157 177 11971 � 0 , 1-200 1 40 6 1 56 157 -1000 -400 Ilk _ 234 -36%1 -410 3 39 1 -600 y -568 51 -2000 -626 -800 -700 -698 -761 -775 -1000 JOINS TERMS JOINS TERMS JOINS TERMS JOINS TERMS -3000 FY2020 FY2021 FY2022 FY2023 ADULT 379 -360 588 -410 780 -568 788 -626 FAM 224 -414 424 -334 565 -391 603 -513 FAM-NC 479 -700 804 -698 931 -761 849 -775 SENIOR 112 -140 201 -124 274 -165 294 -234 YOUTH 82 -66 157 -115 197 -156 177 -157 TOTALS 1276 -1680 2174 -1681 2747 -2041 2711 -2305 NET -404 493 706 406 ADULT FAM FAM-NC SENIOR YOUTH TOTALS NET FY2023 CC Membership Terminations by Reason and by Month 120 104 Top Reason Given: 100 94 90 81 82 ■ 9 80 71 67 7372 60 40 20 0 0 Failed Payment Oct-22 71 m N ov-22 94 mDec-22 81 mJan-23 67 mFelr23 82 m Mar-23 73 mApr-23 72 May-23 90 mJun-23 79 Jul-23 104 mAug-23 97 msep-23 0 Totals 910 % 39.5% 70 71 Unsatisfied with Fadliky or Selected other service Not Utilizing Membership Relocatingfrravel Transfer Ameni0es provider 54 25 22 3 5 29 16 19 2 5 29 19 23 _ 3 1 36 50 30 4 6 41 21 28 3 1 37 26 18 4 1 27 26 20 4 1 48 45 26 3 1 41 58 22 1 3 38 48 22 2 3 70 71 44 5 5 0 0 0 0 0 450 405 274 34 32 19.5% 17.6% 11.9% 1.5% 1.4% 2420 10 No Reason! Other 19 21 21 12 17 9 18 18 21 24 20 0 200 8.7% EXPERIENCE SOUTHLAKE Three Year Revenue Comparison by Month $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 o��t �0 et el�� OeG 5 ■ FISCAL YEAR 2021 FISCAL YEAR 2022 Fiscal Year 2023 EXPERIENCE SOUTHLAI<,.,.,E INVESTMENT REPORT City of Southlake July 1 to September 30, 2023 ifs• 4 - x _ r t Hilltop Securities J�* Contents Investment Management Team Scott McIntyre Market Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Senior Portfolio Manager 572.481.2009 Investment Officers'Certification ...........................4 Scott.McIntyre@HilltopSecurities.com Portfolio Overview....................................5 Portfolio Overview....................................6 Greg Warner Senior Portfolio Manager Asset Allocation......................................7 572.487.2072 Credit Rating Summary 8 Greg.Warner@HilltopSecurities.com Benchmark Comparison.................................9 Fund Overview.....................................10 Jodi Jones Investment Reporting Manager Detail of Security Holdings..............................11 572.487.2076 Jodi.Jones@HilltopSecurities.com Famed Income.....................................12 Investment Transactions................................13 Investment Transactions Totals ............................14 Amortization and Accretion .............................15 Projected Cash Flows..................................16 Projected Cash Flows Totals..............................17 Disclosures & Disclaimers...............................18 Page 2 Hilltop Securities J�* Market Recap Fed hopes for weaker economic growth and lower price pressures were dashed in September as the U.S. economy remained a little too resilient, and a sharp rise in oil prices clouded the inflation outlook. The August employment report was a mixed bag. U.S. companies added +187kjobs, which was higher than expected, although prior month revisions were sharply lower. A surprising 736,000 Americans entered the labor force in August and a post -pandemic high of 6.2 million were reportedly seeking work.The influx of available workers pushed the unemployment rate up three -tenths to 3.8%, and the participation rate up to its highest point since the pandemic began. On the inflation front, OPEC+ production cuts and a reluctance by U.S. producers to commit the capital required to ramp up production to fill the gap sent WTI crude oil prices from just under $83 per barrel at the beginning of the month to $94 four weeks Iater.The increase was a major contributor to the August inflation readings. Headline CPI rose +0.6% in August, the largest increase in 14 months.The energy component, reflecting thejump in oil prices, was up +5.6% in August after a +0.1 % gain in July. Within the energy category, gasolinejumped +10.6%, contributing over half of the headline CPI gain for the month. Core CPI (excluding food and energy) rose+0.3%, the first uptick since February. On a year - over -year basis, overall CPI was up +3.7%, slightly above forecast and higher for the second straight month following 13 months of steady decline. Core consumer inflation retreated from a +4.7% annual pace to a still -too -high +4.3%, exactly matching expectations. There was, however, some good news in the report as combined owners' eq u ivalent rent and rent of primary residence rose byjust+0.4%, the smallest increase since December 2021. Housing costs (which fall into the service category) continue to be a primary driver of core inflation. When housing is excluded, core CPI was upjust +2.2% year -over -year. Retail sales rose +0.6% in August, well above the +0.1 % median forecast, but the headline was stronger than the underlying details. Only 9 of 18 spending categories indicated growth, but gas station sales (due to higher gasoline prices) surged +5.2%, more than City of Southlake As of September 30, 2023 enough to drive the headline higher. As expected, Fed officials voted unanimously at the September 20th FOMC meeting to hold the overnight rate target steady. In the post -meeting press conference, Chairman Jay Powell said the pause should not suggest the Fed is done raising rates, though he went on to say the committee will proceed carefullyin deciding whether another hike will be necessary. What wasn't expected was the rather hawkish outlook for 2024 and 2025. The first dot plot since the June FOMC meeting showed one more rate hike this year and a much slower pace of rate cuts over the next two years.The ending rate target for each of the next two years were 50 basis points higher than the June dot plot, with the overnight funds target at the end of 2024 rising from 4.625% to 5.125%, and from 3.375%to 3.875% at the end of 2025.This was consistent with the higher -for -longer narrative Fed officials have been emphasizing for months.The longer -term neutral rate was unchanged at 2.50%. At this point in time, it'sjust expected to take longer to get there. Yields rose during the month of September and were up sharply over the quarter, with much of the increase occurring at the long end of the curve, as investors factored -in the heightened possibility that inflation could linger, and rate cuts would likely be delayed.Two- yearTreasury notes reached cycle highs just below 5.20%during the month before settling at 5.04%, up 18bps during the month.The 10-yearT-note rose 46bps in September and 73bps for the quarter, closing at 4.57%, the highest level since 2007. Page 3 Hilltop Securities J�* Investment Officers'Certification This report is prepared for the City of South lake (the "Entity) in accordance with Chapter 2256 of the Texas Public Funds Investment Act ("PFIA"). Section 2256.023(a) of the PFIA states that: "Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of the investment transactions for all funds covered by this chapter for the preceding reporting period." This report is signed by the Entity's investment officers and includes the disclosures required in the PFIA. The investment portfolio complied with the PFIA and the Entity's approved Investment Policy and Strategy throughout the period. All investment transactions made in the portfolio during this period were made on behalf of the Entity and were made in full compliance with the PFIA and the approved Investment Policy. City of Southlake As of September 30, 2023 Investment Officers Nicole Bradshaw Nicole Bradshaw Deputy Director of Finance Sharen Jackson Sharen Jackson Chief Financial Officer Page 4 Hillto Securities � City of Southlake i� July 1, 2023 - September 30, 2023 Portfolio Overview Portfolio Summary Income Summary Portfolio Characteristics Prior Current Period I Jul-23 to 30Sep-23 Prior Lurrefa- 'Current 0- ParValue 175,790,765.01 165,193,888.46 Interest Income 1,939,798.76 Yield to Maturity 4.215% 4.749% Original Cost 176,011,766.90 165,466,296.60 Net Amortization/Accretion (10,263.19) Yield to Worst 4.215% 4.749% BookValue 175,849,138.38 165,241,998.65 Realized Gain/(Loss) 0.00 Days to Final Maturity 31 16 Market Value 175,261,528.61 164,989,996.31 Net Income 1,929,535.57 Days to Effective Maturity 31 16 Accrued Interest 87,760.63 81,577.96 Duration 0.38 0.27 BookValue Plus Accrued 175,936,899.02 165,323,576.60 • . • - Market Value Plus Accrued 175,349,289.24 165,071,574.27 Net Income 6,406,706.22 Net Unrealized Gain/(Loss) (587,609.77) (252,002.34) Asset Allocation AGCY 3.03% AGCY CALL 6.05% LGIP 85.15% MUNI 2.75% US GOVT 3.03% Transaction Summary Maturity (13,000,000.00) 13,000,000.00 0.00 13,000,000.00 0.00 Coupon 0.00 0.00 98,750.00 98,750.00 0.00 Page 5 Hilltop Securities J�* Portfolio Overview Maturity Distribution by Security Type ■ AGCY 3.03% ■ AGCY CALL 6.05% ■ LGIP 85.15% ■ MUNI2.75% ■ USGOVT3.03% 100% 85.2 50% 9.1 3.0 2.8 0% — e`�`�r� � car`' � ter`' � ter`' �o�r5 yeas years ,eats yeai5 0 0 0 Maturity Distribution by Security Type City of Southlake As of September 30, 2023 Top Ten Holdings TEXPOOL 33.03% TEXSTAR 27.85% TXCLASS 8.40% LONESTRGOV 8.11 % LONESTRCRP 7.77% Federal Home Loan Banks 6.05% United States Department ofTheTreasury 3.03% Federal Farm Credit Banks Funding Corporation 3.03% Texas A&M University System Board of Regents 2.75% SecurityType Ivernight U-3 r. r. r. r. •. . . AGCY 4,999,231.14 -- — — 4,999,231.14 AGCY CALL - 5,000,000.00 4,989,496.24 - - 9,989,496.24 LGIP 140,708,888.46 - - 140,708,888.46 MUNI - - 4,544,827.90 - - 4,544,827.90 US GOVT - 4,999,554.90 - - 4,999,554.90 Total 140,708,888.46 14,998,786.04 4,989,496.24 4,544,827.90 - - - - - 165,241,998.65 Page 6 Hilltop Securities J�* Asset Allocation Asset Allocation by Security Type as of 30-Jun-2023 AGCY 2.84% AGCY CALL 5.68% LGIP 78.65% MUNI 2.60% US GOVT 10.23% Book Value Basis Security Distribution City of Southlake As of September 30, 2023 Asset Allocation by Security Type as of 30-Sep-2023 AGCY 3.03% AGCY CALL 6.05% LGIP 85.15% MUNI 2.75% US GOVT 3.03% AGCY 4,997,417.42 2.84% 0.18% 4,999,231.14 3.03% 0.545% AGCY CALL 9,983,070.57 5.68% 0.37% 9,989,496.24 6.05% 2.474% LGIP 138,305,765.01 78.65% 6.50% 140,708,888.46 85.15% 5.356% MUNI 4,568,824.98 2.60% 0.15% 4,544,827.90 2.75% 0.400% US GOVT 17,994,060.40 10.23% (7.21 %) 4,999,554.90 3.03% 0.358% Portfolio Total 175,849,138.38 100.000/0 165,241,998.65 100.000/0 4.749% Page 7 Hilltop Securities. Credit Rating Summary Rating Distribution Local Government Investment Pools & Money Market Funds AAA 140,708,888.46 85.15% Total Local Government Investment Pools & Money Market Funds 140,708,888.46 85.15% Long Term Rating Distribution AAA 24,533,110.19 14.85% Total Long Term Rating Distribution 24,533,110.19 14.85% Portfolio Total 165,241,998.65 100.000/0 City of Southlake As of September 30, 2023 Allocation by Rating AAA 100.00% Page 8 Hilltop Securities J�* Benchmark Comparison - City of Southlake 6 Month CMT - 1 Year CMT TexPool 7.50% 5.00% 2.50% 0.00% Op Yield Overview City of Southlake 6 Month CMT 1 Year CMT TexPool City of Southlake As of September 30, 2023 0.11 0.13 0.16 0.16 0.21 0.29 0.44 0.59 0.79 1.10 1.49 1.91 2.23 2.64 2.92 3.23 3.38 355 3.78 4.00 4.22 4.37 4.61 4.75 0.05 0.06 0.07 0.12 0.21 0.34 0.54 0.78 1.12 1.55 1.96 2.43 2.93 3.45 3.87 4.20 4.50 4.72 4.84 4.95 5.07 5.20 5.29 5.38 0.08 0.09 0.10 0.14 0.21 0.32 0.47 0.64 0.85 1.10 1.37 1.68 2.05 2.42 2.79 3.15 3.45 3.73 3.96 4.21 4.42 4.62 4.80 4.93 0.04 0.04 0.04 0.04 0.06 0.15 0.30 0.62 1.00 1.52 2.16 2.41 2.93 3.61 3.98 4.24 4.50 4.61 4.80 5.00 5.05 5.12 5.30 5.32 Hilltop Securities J�* Fund Overview General Operating City of Southlake July 1, 2023 - September 30, 2023 175,849,138.38 175,261,528.61 (10,271,532.30) 165,241,998.65 164,989,996.31 1,929,535.57 16 4.749% 4.749% Total 175,849,138.38 175,261,528.61 (10,271,532.30) 165,241,998.65 164,989,996.31 1,929,535.57 16 4.749% 4.749% Page 10 Hilltop Securities J�* Detail of Security Holdings General Operating City of Southlake As of September 30, 2023 LNSTCRP LGIP LoneStarCorpO/N 09/30/23 12,833,662.87 100.000 12,833,662.87 12,833,662.87 100.000 12,833,662.87 1 5.527 5.527 AAA LNSTGOV LGIP LoneStarGovO/N 09/30/23 13,403,106.30 100.000 13,403,106.30 13,403,106.30 100.000 13,403,106.30 1 5.315 5.315 AAA TEXPOOL LGIP TexPool 09/30/23 54,581,754.15 100.000 54,581,754.15 54,581,754.15 100.000 54,581,754.15 1 5.322 5.322 AAA TEXSTAR LGIP TexSTAR 09/30/23 46,012,213.99 100.000 46,012,213.99 46,012,213.99 100.000 46,012,213.99 1 5.310 5.310 AAA TXCLASS LGIP Texas CLASS 09/30/23 13,878,151.15 100.000 13,878,151.15 13,878,151.15 100.000 13,878,151.15 1 5.521 5.521 AAA 91282CAP6 10/14/21 US GOVT U.S. Treasury Note 0.125 10/15/23 5,000,000.00 99.535 4,976,757.80 4,999,554.90 99.797 4,989,843.75 15 0.358 0.358 AAA 3133ENDR8 11/15/21 AGCY FFCB 0.400 11/09/23 5,000,000.00 99.713 4,985,665.00 4,999,231.14 99.491 4,974,530.00 40 0.545 0.545 AAA 3130AQAFO 12/22/21 AGCYCALL FHLB 0.800 12/22/23 Expired 5,000,000.00 100.000 5,000,000.00 5,000,000.00 98.998 4,949,885.00 83 0.800 0.800 AAA 3130ASXL8 09/16/22 AGCYCALL FHLB 3.625 02/28/24 11/28/23 Quarterly 5,000,000.00 99.265 4,963,250.00 4,989,496.24 99.246 4,962,310.00 151 59 4.151 4.151 AAA BOARD OF REGENTS 88213AKBO 09/29/20 MUNI TEXAS A & M UNIVERSITY 2.549 05/15/24 4,485,000.00 107.731 4,831,735.35 4,544,827.90 98.206 4,404,539.10 228 0.400 0.400 AAA SYSTEM Total General Operating 165,193,888.46 165,466,296.60 165,241,998.65 164,989,996.31 16 59 4.749 4.749 Grand Total 165,193,888.46 165,466,296.60 165,241,998.65 164,989,996.31 16 59 4.749 4.749 Page 11 Hilltop Securities J�* Earned Income General Operating City of Southlake July 1, 2023 - September 30, 2023 912828ZY9 USGOVT U.S. Treasury Note 2,883.29 241.71 3,125.00 0.00 0.00 784.05 0.00 1,025.76 91282CCU3 USGOVT U.S. Treasury Note 1,671.20 828.80 2,500.00 0.00 0.00 778.37 0.00 1,607.17 91282CAK7 USGOVT U.S. Treasury Note 1,467.39 1,032.61 2,500.00 0.00 0.00 1,007.17 0.00 2,039.78 LNSTCRP LGIP LoneStar Corp O/N 0.00 174,381.56 174,381.56 0.00 0.00 0.00 0.00 174,381.56 LNSTGOV LGIP LoneStar Gov O/N 0.00 175,590.60 175,590.60 0.00 0.00 0.00 0.00 175,590.60 TEXPOOL LGIP TexPool 0.00 705,932.25 705,932.25 0.00 0.00 0.00 0.00 705,932.25 TEXSTAR LGIP TexSTAR 0.00 602,377.61 602,377.61 0.00 0.00 0.00 0.00 602,377.61 TXCLASS LGIP Texas CLASS 0.00 188,949.41 188,949.41 0.00 0.00 0.00 0.00 188,949.41 91282CAP6 USGOVT U.S. Treasury Note 1,314.89 1,571.04 0.00 0.00 2,885.93 2,924.92 0.00 4,495.95 3133ENDR8 AGCY FFCB 2,888.89 5,000.00 0.00 0.00 7,888.89 1,813.72 0.00 6,813.72 313OAQAFO AGCY CALL FHLB 1,000.00 10,000.00 0.00 0.00 11,000.00 0.00 0.00 10,000.00 3130ASXL8 AGCYCALL FHLB 61,927.08 45,312.50 90,625.00 0.00 16,614.58 6,425.67 0.00 51,738.17 88213AKBO MUNI BOARD OF REGENTS TEXAS A&MUNIVERSITY 14,607.89 28,580.66 0.00 0.00 43,188.56 (23,997.08) 0.00 4,583.58 SYSTEM Total General 87,760.63 1,939,798.76 1,945,981.43 0.00 81,577.96 (10,263.19) 0.00 1,929,535.57 Operating Grand Total 87,760.63 1,939,798.76 1,945,981.43 0.00 81,577.96 (10,263.19) 0.00 1,929,53557 Page 12 Hilltop Securities J�* Investment Transactions General Operating Coupon City of Southlake July 1, 2023 - September 30, 2023 912828ZY9 07/15/23 07/15/23 USGOVT U.S. Treasury Note 0.125 07/15/23 0.00 0.00 3,125.00 3,125.00 0.00 — — 3130ASXL8 08/28/23 08/28/23 AGCY CALL FHLB 3.625 02/28/24 11/28/23 0.00 0.00 90,625.00 90,625.00 0.00 — — 91282CCU3 08/31/23 08/31/23 USGOVT U.S. Treasury Note 0.125 08/31/23 0.00 0.00 2,500.00 2,500.00 0.00 — — 91282CAK7 09/15/23 09/15/23 US GOVT U.S. Treasury Note 0.125 09/15/23 0.00 0.00 2,500.00 2,500.00 0.00 — — Total Coupon 0.00 0.00 98,750.00 98,750.00 0.00 Maturity 912828ZY9 07/15/23 07/15/23 US GOVT U.S. Treasury Note 0.125 07/15/23 (5,000,000.00) 100.000 5,000,000.00 0.00 5,000,000.00 0.00 — — 91282CCU3 08/31/23 08/31/23 USGOVT U.S. Treasury Note 0.125 08/31/23 (4,000,000.00) 100.000 4,000,000.00 0.00 4,000,000.00 0.00 — — 91282CAK7 09/15/23 09/15/23 US GOVT U.S. Treasury Note 0.125 09/15/23 (4,000,000.00) 100.000 4,000,000.00 0.00 4,000,000.00 0.00 — — Total Maturity (13,000,000.00) 13,000,000.00 0.00 13,000,000.00 0.00 Page 13 Hilltop Securities J�* Investment Transactions Totals City of Southlake July 1, 2023 - September 30, 2023 Total Maturity (13,000,000.00) 13,000,000.00 0.00 13,000,000.00 0.00 0.125 0.125 Total Coupon 0.00 0.00 98,750.00 98,750.00 0.00 Page 14 Hilltop Securities J�* Amortization and Accretion General Operating 912828ZY9 12/15/21 US GOVT 91282CCU3 08/31/21 US GOVT 91282CAK7 08/26/21 US GOVT 91282CAP6 10/14/21 US GOVT 3133ENDR8 11/15/21 AGCY 313OAQAFO 12/22/21 AGCY CALL 3130ASXL8 09/16/22 AGCY CALL 88213AKBO 09/29/20 MUNI City of Southlake July 1, 2023 - September 30, 2023 U.S. Treasury Note 0.00 0.000 0.00 784.05 0.00 0.00 0.00 U.S. Treasury Note 0.00 0.000 0.00 778.37 0.00 0.00 0.00 U.S. Treasury Note 0.00 0.000 0.00 1,007.17 0.00 0.00 0.00 U.S. Treasury Note 5,000,000.00 99.535 4,976,757.80 2,924.92 22,797.11 (445.10) 4,999,554.90 FFCB 5,000,000.00 99.713 4,985,665.00 1,813.72 13,566.14 (768.86) 4,999,231.14 FHLB 5,000,000.00 100.000 5,000,000.00 0.00 0.00 0.00 5,000,000.00 FHLB 5,000,000.00 99.265 4,963,250.00 6,425.67 26,246.24 (10,503.76) 4,989,496.24 BOARD OF REGENTSTEXAS A & M UNIVERSITY SYSTEM 4,485,000.00 107.731 4,831,735.35 (23,997.08) (286,907.45) 59,827.90 4,544,827.90 Total General 24,485,000.00 24,757,408.14 (10,263.19) (224,297.96) 48,110.19 24,533,110.19 Operating Grand Total 24,485,000.00 24,757,408.14 (10,263.19) (224,297.96) 48,110.19 24,533,110.19 Page 15 Hilltop Securities J�* Projected Cash Flows General Operating City of Southlake September 30, 2023 to September 30, 2024 91282CAP6 U.S. Treasury Note 10/16/23 3,125.00 3,125.00 91282CAP6 U.S. Treasury Note 10/16/23 5,000,000.00 5,000,000.00 3133ENDR8 FFCB 11/09/23 10,000.00 10,000.00 3133ENDR8 FFCB 11/09/23 5,000,000.00 5,000,000.00 88213AKBO BOARD OF REGENTSTEXAS A & M UNIVERSITY SYSTEM 11/15/23 57,161.32 57,161.32 3130AQAFO FHLB 12/22/23 20,000.00 20,000.00 3130AQAFO FHLB 12/22/23 5,000,000.00 5,000,000.00 3130ASXL8 FHLB 02/28/24 90,625.00 90,625.00 3130ASXL8 FHLB 02/28/24 5,000,000.00 5,000,000.00 88213AKBO BOARD OF REGENTSTEXAS A & M UNIVERSITY SYSTEM 05/15/24 57,161.32 57,161.32 88213AKBO BOARD OF REGENTSTEXAS A & M UNIVERSITY SYSTEM 05/15/24 4,485,000.00 4,485,000.00 Grand Total 238,072.65 24,485,000.00 24,723,072.65 Page 16 Hilltop Securities J�* Projected Cash Flows Totals City of Southlake September 30, 2023 to September 30, 2024 October 2023 3,125.00 5,000,000.00 5,003,125.00 November 2023 67,161.32 5,000,000.00 5,067,161.32 December 2023 20,000.00 5,000,000.00 5,020,000.00 February 2024 90,625.00 5,000,000.00 5,090,625.00 May 2024 57,161.32 4,485,000.00 4,542,161.32 Total 238,072.65 24,485,000.00 24,723,072.65 ■ Interest ■ Principa, $7,500,000 $ 5,000,000 $2,500,000 $0 Oct _ Feb-24 May-24 Page 17 Hillto Securities � City of Southlake i� As of September 30, 2023 Disclosures & Disclaimers As a courtesy to investors this information: (1) is provided for informational purposes only; (2) should not be construed as an offer to sell or a solicitation of an offer to buy any security; and (3) does not replace customer statements This report is designed to provide general information and is not intended to provide specific legal, investment, accounting, tax or other professional advice. 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Hilltop Securities Inc. (HTS) is a registered broker -dealer, registered investment adviser and municipal advisor firm that does not provide tax or legal advice. Member of FINRA & SIPC. HTS and HSAM are wholly owned subsidiaries of Hilltop Holdings, Inc. (NYSE: HTH) located at 717 N. Harwood St., Suite 3400, Dallas,Texas 75201, (214) 859-1800, 833-4HILLTOP. Copyright 2022, S&P Global Market Intelligence. Reproduction of any information, data or material, including ratings ("Content") in any form is prohibited except with the prior written permission ofthe relevant party. Such party, its affiliates and suppliers ("Content Providers") do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless ofthe cause, or for the results obtained from the use of such Content. In no event shall. 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